Center stage and treasuries weaken with the curve flattening after last weeks definitive move higher. Joining us for the hour, dan nathan a real Holding Pattern here today. Are we waiting for news out of washington heres the good news, right we had this big rip up off of the lows last week on optimism that there would be some sort of grand deal as far as trade is concerned. The fact that it doesnt look like that were going to get that at the end of the day, the fact that were not down in a meaningful manner is fairly establish. Could things change pretty quickly if the fed decides top pull our negotiators away and we know were dead in the water for a couple of months no doubt about it. Its kind of interesting on a day like today, where we dont see staples and utilities. These are two of the bestperforming groups, deemed to be defensei you dont see them rallying and dont see the s p 500 down a lot either it seems like a lot of nothing despite some really potential for volatility later in the week down just 0. 2 or so. Well keep an eye on the direction of movement with just 48 58 minutes left of trade lets focus in on the big stories were watching Kayla Tausche is covering the latest on trade. Steve liesman is tracking wall streets read on the economy and mike santoli has his market dashboard. Bob, lets start with you. What weve got here is chopping trading i would call it low conviction really, we had two rallies one of them was in the midmorning. Larry kudlow came on, saying the u. S. Is keeping an open mind, but also says he has no plans to force a delisting of Chinese Companies trading in the u. S that helped early on, about 10 30. And about 1 30 eastern time, we had a fox news report that the Chinese Commerce ministry was ready to do a deal on the parts of negotiation both sides could agree upon but then we just sort of lost steam. And there wasnt any real headlines on that. The conviction on the china trade just is not very strong right now. It hasnt been for a while china stocks did rally midday and fell back. If you want to look at the mchi, this is a broad china etf. Same situation, it just fell back, rallied initially. And semiconductors, they went positive midday, but they, too, have faell back into negative territory for the most part except for materials courtney, back to you. Thanks, bob well check in with you later. Turning now to the china trade deal or potential deal or maybe no deal. Who knows . As deputylevel negotiations kick off ahead of higherlevel talks later this week, Kayla Tausche has the latest from washington hi, kayla. Good morning. Theyre meeting behind closed doors, but both washington and beijing choosing to message through the media as these critical talks get underway in washington chinese officials have suggested to multiple outlets that they would do a deal, but on some narrower issues, but they would not change beijings intellectual property laws, and thats long been a deal breaker for the white house. But trader adviser Peter Navarro this morning said it was a broad deal or no deal, and then you had larry kudlow say that the u. S. Was open to whatever the delegation would bring both sides are hedging their bets that talks between principles later this week beginning thursday would be fruitful, even if the result for now was incomplete and those negotiations on those tough issues extend through the election guys kayla, thank you very much for that dan, your take on this i mean, clearly not clear positives in progress, but the market has been focused more on other things, the fundamental data, for example, than the trade headlines of late. I think its really important. Theyre all kind of connected. Were starting to see our manufacturing data weaken here and the notion that the u. S. Could somehow kind of decouple from china, which is feeling a far greater effect from this trade war than we are, is catching up to us a little bit were seeing weaker consumer data here in the u. S the notion that this thing could go on for too much longer the way it is, is not great. And we know that we also have the looming deadline of december 15th, for those consumer tariffs that were announced on august 1st. And when you think about that, thats really when this market started to slant downward on august 1st, after just making a new alltime high on july 26 president. So i think there needs to be some sort of resolution, at least that wont have new tariffs come in december 15th. That will hang over the market in the next couple of months if this trade negotiation just falls apart and those tariffs are on tap off a some of that worsening Economic Data, wall street firms have lowered economic forecasts over the last few days and Steve Liesman is having a look at where sentiment stands overall. Steve . While markets seem to think bad news was good news when it came to the jobs report, thats because it meant more federate cuts, potentially. Wall street economists are suggesting bad news may really be bad news. The data remain consistent with an economy that has slowed consistently, but not to the point of recession this slowdown in employment is likely to cause Household Spending which has been the bright spot to moderate. And optimists point to a high savings rate overall to support their view that consumers will keep on spending on, and the u. S. Will avoid recession. But pessimists, they point to these declining forecasts for gdp. Were down to 1. 5 for the justcompleted Third Quarter in our tracking survey. 1. 9 is for the quarter were in now. Several speeches and data points to come this weekend that could impact the outlook for both the economy and the fed. Producer prices tomorrow morning, jay powell giving a speech that likely deals with the economy. Fed minutes on wednesday, cpi on thursday, and of course, import prices, while they didnt used to be important, theyre important now. Fed speeches suggest some strong divisions on the committee and well see this week if they move it more towards the more upbeat view or the mess mechanism of the wall street economy. Well watch and see if bad news is still bad news lets send it over to mike santoli for todays market dashboard. I have a dashboard thats kind of fit for this mixed, ambiguous tape we have right here give and take, it will show how much f. A. A. N. G. Stocks have taken away leads and lags, a couple of belle weather sectors that are telling two different stories right now. And then putts and takeses how credits is looking and its because they have come back to the pack if you look at this 18month chart of the First Trust Internet etf, a very f. A. A. N. G. Like etf, 35 of it is f. A. A. N. G. Essentially, and it behaves that way, against the s s p, this is when we really started getting full of the f. A. A. N. G. Story and its come back and matched the s p 500 over the last 18 months and if you look at a market cap basis what has happened, if you took each of the f. A. A. N. G. Stocks, netflix and alphabet parent of google, and said, what was their peak market cap it was 2. 7 trillion it wasnt all in the same day at the same moment, but it was around the same time, more over a year ago current market cap around 2. 3 trillion a loss of about 400 billion net market cap from their respective peaks. The peak, 25. 1 trillion, down to 24. 5 or so the majority of whats been lost in the s p 500 aggregate market cap can be reflected in whats happened to f. A. A. N. G. Doesnt mean f. A. A. N. G. Is all that mattered. It also means the rest of the market has actually done okay on a relative basis, but it does show you that the market needs a different story if, in fact, the big megacap Growth Stocks are not going to lead, guys. Some astonishing statistics there. If we went back to the first chart, the takeaway would be that if f. A. A. N. G. Isnt leading, the best the overall market cap weighted s p 500 could do is sort of stay flat. Yes, you could think, a lot of else has to go right. I would point out, things like apple, microsoft so these huge consensus winner big growth stock names that are working very well, they dont happen to be f. A. A. N. G. , which are under regulatory pressures and all the rest thank you very much, mike well check back in with you, soon well, right now, you can see that the stocks, we can pull up the market chart here. We are lower for the dow by just a hair, about a tenth of a percent here, s p 500 down by twotenths of a percent, nasdaq composite down about onetenth of a percent, as we still have 51 minutes left to go in todays trading session. Joining us now, alicia levine, chief strategist, and it seems like based on your notes, youre not so surprised about todays action this is sort of what youre expecting. Youve got 12 risk factors that are priced in, but 11 that arent priced in so you could go either way we see this quarter as being very, very choppy. And as weve discussed in the past, october is full of big headlines. Very difficult market to invest in, when you really have these binary headlines that youre waiting for. I agree with dan here that, you know, the december 15th consumer tariffs really have to be put off the table. So there doesnt have to be a deal, but if theres some kind of, you know, status or some kind of just keeping it stable, while were still talking with china, thats probably enough to get some risk back into the market here. Other than that, we just really see this as a very choppy market, dependent on macro headlines. Very hard to invest when youre waiting for macro headlines. And what do you make of the analysis that mike just did there . I was waiting for that. Its really interesting, when you think about apple, its right back to its prior alltime highs, two bucks away from it. Really a smidge away you know, f. A. A. N. G. In general, i like to use maga, its microsoft, amazon, google, and apple. When you think about that, that is 40 of the nasdaq 100 now, amazon and google from vus sta just stalled out apple is about to make it. Apple is up materially from its lows how much torque do you think it has to the upside if it were to break out and make a new high . And microsoft has been stuck in trading range for months when you look at these megacap names, there are headwinds even with apple, if you ring the bell and its a new high, i dont care what im most focused on is what is doing the heavy lifting its utilities and reits and staples, really expensive for not a whole heck of a lot of growth but deemed defensive. Thats not particularly establish with the s p, 2. 5 off the alltime highs in my opinion. Alicia, when we look at the the Economic Data. You could look at it grass half full, glass half empty we know the Manufacturing Sector is weakening, but were more of a servicesbased economy whats your viewpoint of where we go from here and if well talk ourself into a recession . We actually could talk ourselves into a recession on the manufacturing side and on the capex side so to the extent that ceo confidence is much worse than Consumer Confidence, thats where you have capex and investment and weve seen the falloff happen because of the uncertainty in whats happening with global trade. In the end, global trade doesnt really affect directly u. S. Gdp all that much, but its those secondary and tertiary effects that really hurt us. If you look at the jobs data from last week, it turns out that the nonsupervisory sector of the labor market actually had quite a pay boost, a wage boost. And that really did not make it to the topline headlines were still confident in the consumer here. We actually think the jobs number, if you look, was actually better than what it looked like on the wage side and to that extent, we think the Consumer Sector is probably okay but bottom line, take some risk off the table at this stage . Look, its an ugly market out there. Theres cheap money for ten years, funding, everything we have funded disrupters that are disrupting stable businesses with earnings and positive cash flow weve dented existing businesses without creating businesses with earnings or equity, but just a lot of debt. And i think ultimately, thats dangerous for the market in the longterm. Alicia, great to see you, as always thanks for joining us. Thank you weve got a news alert and its on facebook elan movie has the details new yorks attorney general met today with top regulators at the department of justice and the ftc to discuss its antitrust investigation into facebook the new york ags office put out a statement saying they have grave concerns over anticompetitive behavior at Large Tech Companies and theyre worried that facebooks actions may have put consumer data at risk of data breaches, reduced the quality of consumers choices, and increased the price of advertising now, remember that new york is leading tae ining the antitrust investigation into facebook, along with seven other state ags. Were told that a Bipartisan Group of state ags did take part in this meeting with the doj and the ftc. We will have to see how this plays into the dojs decision over whether to conduct its own investigation into facebook, guys, but for now, new yorks ag meeting with the doj and the ftc on facebook. Ylan, to what extent are we surprised to see those three different groups working together on this well, we have seen in the past that there has been some divergence and certainly some overlap at times between the different state and federal regulators i think it is significant that we know the state ags are willing into facebook, we know the ftc is looking into facebook, theres speculation that the doj will begin its own inquiry, so this is certainly fueling the rumors or concern that facebook could be the next target from the doj. Ylan, thanks so much for that dan, whats your take on this and whether the regulatory risks for these big tech stocks is real i think you said it yourself, its bipartisan. And its coming from the states and from the feds. And i think the one big issue right now, because its interesting because facebook this year made a new alltime high after having a very bad 2018 after all of these issues really came to the fore, you know, the fact of the matter is, advertisers havent left and users havent left so engagement is starting to drop off a little bit. I think 2020 is going to be a very defining year for the company like facebook, when you think about the duopoly that they are in with google, who is also alphabet, who is also now facing the ire from regulators, also, its going to be really interesting the only thing ill just mention, very different between facebook and Google Facebook has been spending over this year. Their Earnings Growth is expected to be flat year over year, despite the fact that sales are continuing to grow at a massive clip, about 26 . Its going to be 70 billion this year. So they might have already made the sort of investments to do the spend that they need to do to protect their platform from being weaponized the way it was in 16 dan, thanks for that. Lots more to come with dan, of course, throughout the first hour of the show also up next, Td Ameritrade out with its latest Investor Survey and it could give some clues about sentiment in some of the countrys biggest tech stocks. Well break that down, coming up and later, a big interview with campbell soups Ceo Mark Clouse since taking the job back in january the stock is up more than 30 since that time. Thats coming in st aupju bit stay tuned to closing bell. Well be back right after this about 42 minutes left to go. Markets marginally lower lets check on some individual market movers. Pepsico is planning to use 15 tesla electric semi trucks to replace its existing freight equipment. Analysts at Morgan Stanley says the deployment of the tesla trucks prove realworld validation of the value of the truck business sell equities and buy fixed income that was the trend in the latest Investor Movement index from Td Ameritrade and many popular tech names were right at the heart of the selling. Joining us now to talk about the trades and trends were seeing is j. J. Kineham, great to see you as always. Always a pleasure thanks for having me before diving into the individual sectors and stock, the headline was risk sentiment is softening people are taking risk off the table. They are. And it continues an 11month trend of being under the average from when we started this index. Whats interesting is you hit, i think, on the most interesting part of it risk may be people may not be taking as much risk, but the fact that theyre going into sixmonth and less fixed income. In fact, 70 of what weve had put into fixed income last month was in sixmonth and less terms. And so its like like 80 yeah, 80 in one year so i think people are looking for that selloff to get back in what continues to be strong and no real change in is these dividendpaying stocks with Interest Rates this low, people are looking for both Capital Appreciation as well as a dividend, because they feel theyre having a tougher time getting it elsewhere so when they are looking at equities, what names are they buying or did they buy in september . I found a couple of interesting related ones in my opinion. Disney and roku, roku having the big selloff so the last two weeks of the months, our clients were bigger buyers of that name after it started its big selloff and i think when you look at the streaming space, and one of the sells being netflix. So i think people have gone from, i want to own the producer of the content to i want to own the provider of the content or the distribution network, i guess i should say, of the content. A little bit more with roku. Now, disney is both the producer and the distributor, but i think that thats something that were seeing thats really interesting, is people are trying to figure out, whos going to be the winner in this streaming world . Where did apple stand apple stood as a sell again, which, you know, you and i talk about this every month, and we continue to see that story still remains our number one held stock. Its really interesting, when apple got to 200, we saw strong sellers. This month, if you look at the chart of september and you see that apple went back and forth around 220 so much, and our clients, every time it got over 220, were pretty heavy sellers of apple so i find it really interesting that i see that as a sympathetic representation of how people feel about china the more nervous they get about the outcome of china, i think this Retail Investors are playing it through what they do with their holdings in apple dan, youre nodding does all of this make sense to you. Im shocked that apple is approaching that alltime high again. When you think about last Fourth Quarter, the Holiday Season that apple had, where was the shortfall . It was in china. When you think about the nationalist fervor that we have right now. Apples market share for smartphones in china is 6. 5 , theyre number five behind four local brands and when you think about all of the talk that weve had about this nationalistic fervor, i dont see how they put up a good quarter in china, even when they have these brandnew phones, when there are competitors locally in china that have 5g phones where do you stand, dan, on the roku netflix debate . When you look at not only thing th ing a aggregators and distributors at t is near 52week highs disney was up 30 , now its up 20 . I think investors, despite all the debt that those three companies have buying into this vertical platform, the delivery, and the content. J. J. , thanks for joining us always a pleasure after the break, shares of wendys sinking after one firm said that the company should skip breakfast well break down that call on todays word on the street and later within air brks b about that decision. This is the family who wanted to connect. To go where they could explore and experience adventure in unexpected places. Who were inspired by different cultures and found that the past can create new memories. Leading them to discover were woven together by the moments we share. For everywhere you go, expedia has everything you need, all in one place. The lexus es. Every curve, every innovation, every feeling. A product of mastery. Lease the 2019 es 350 for 379 month for 36 months. Experience amazing at your lexus dealer. Ive been a caregiver for 20 years. No two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. And who doesnt love going home. Welcome back to the closing bell. Now its time to get the word on the street cowen downgrading wendys from 20 a share to 22 they say the companys decision to chase breakfast doesnt create a longterm advantage everycore raising its price target for nvidia to 125 to 185 citing its strength in gaming. And ubs upgrading e trade to buy, saying the companys slide presents a buying opportunity. However, the firm lowering its price target on the stock from 45 to 41 Charles Schwab sitting down with our own bob pisani earlier today addressing the decision to offer free commission. I thought, just like other companies, we make our money on other relationships, you might want advice, you might want to have a fixed income or things like that. Well make a little bit of money there, but commissions on stocks now are free dan, whats your take on these brokers . The interesting thing on this e trade note is the downgrade in the price target is small, 45 to 41 relative to how much theyve downgraded the eps for next year from 425 down to 430 share price target downgrade not too significant. I think these stocks kind of overshot i was actually surprised to see them down as much as they were lastweek and anybody whos been watching this sector knows the direction of commissions and so they did quantify what that number is on a quarterly basis. And i think its really important to think about, these companies, they used to be just discount brokers before they became online brokers. And it was just kind of the cheapest place to do it. Now theyre all cheap, race to zero how do you monetize these assets under management how do you make these assets stickier and i think thats the next phase of these things. And i expect youll see some consolidation among these guys if you take out lever for profitability, you know, like that, its never coming back, youve got to figure out a way to take some costs down and then figure out how to monetize those assets what about the nvidia call . Interesting you know, this is one that got cut in half off its highs last year and theres a really interesting gap in the chart for some of you guys that like to look at that from late september after the stock was already down about 30 . They had guided down for the next quarter and really seeped into the 2019 numbers. This stock is up considerably on the year, its still down, you know, considerably from those highs. I think 200 is a really important level of resistance to the upside that a lot of traders will be looking forward to get through. That being said, this company, if you can see these levers of growth, like gaming again reemerge, its trading at about 27 times thats pretty cheap for this stock. Nvidia trading up a couple of percent. Weve got just over 31 minutes left of trade. China and the u. S. Launch a new round of trade talks with a path to the deal still uncertain. Oil whipsawed as geopolitical issues in the middle east retake center stage. And treasuries are weaker with the curve flattening after last weeks move higher we are currently down just 21 points on the dow. Its now time for a cnbc news update with sue herrera good afternoon, sue. Good afternoon, courtney. Good afternoon, everyone heres whats happening at this hour Melania Trump became the first first lady to visit the Drug Enforcement agency she gave brief remarks at the agencys drugfree awareness event, speaking on the importance of educating children about the dangers of ecigarettes and vaping. We need to continue encouraging teenagers and young adults that have fallen into drug addiction to be brave enough to admit it, to talk about it, and to get help. This also includes addiction associated with ecigarettes and vaping three children and two adults were found dead inside a condo complex in abington, massachusetts, this morning. The emergency call came in when an adult Family Member arrived at the home to pick up the children for school. A heavy Police Presence remains at that scene. Hundreds of billions of dollars are being wasted when it comes to Health Care Spending, according to a new report from Health Insurance company humana. Researchers looked at 54 governmentbased studies published over a sevenyear span they found the cost of wasteful spending ranged from 760 to 935 billion, roughly 25 of total Health Care Spending you are up to date thats the news update at this hour wilf, back downtown to you sue, thank you very much. Well see you next hour. We have just under 30 minutes left of trade. Lets send it over to mike for the second installment of his dashboard. Deciding on the bellwether you decide to look at, it will give you a different look. The smh semiconductor etf, its obviously kind of mostly sideways, but whats most significant is this uptrend that youre seeing right there. Thats from obviously december were pretty healthily above that it seems like its making progress not far from its highs look at the transports iyt, maybe a 19th and 20th century bellwether, arguably but really, just looks like its stuck, right it cannot get out of its own way. Really rangebound. So what you attach relevance to is essentially going to giveyo the answer as to whether this market has the horses to get much higher. I think semiconductors probably the more primary driver right now if you want to look at a health check at the moment, guys where do you stand on that, dan . The transports or the small caps does it worry you for the broader markets . Semiconductors more and more are selling into industrials its really hard to kind of detach those groups. The semis are acting really well right now. Theres a couple of components in that smh, Taiwan Semiconductor just made a new alltime high this week. But names like intel are still stuck in the mud xilinx, which is considered to be a huge 5g play, also acting very badly, still up a little bit, gown considerabbut down com its highs. Theres a lot of names that dont act particularly well. Okay, mike, thanks again. Well see you again a bit later. Weve got 28 minutes left of trade and currently lower, but only by 45 points or so. Coming up, weve got your lastchance trade and dan is picking a recent ipo thats down nearly 50 from its ipo price. Well reveal that call, coming up and after the break, well take a deeper dive into the state of the ipo market following weworks fall from grace. And heres a quick check on bonds. U. S. Treasury yields are ticking higher after a big drop in last weeks Roller Coaster Market closing bell is back very quickly after this break what do advisors look for in an etf . I tell clients, etfs can follow an index, but which ones target your goals . Its not about quantity. Its about quality. No trendy stuff. I want etfs backed by research. Is it built for the longterm . My reputation depends on it. Flexshares etfs are designed and managed around investor objectives. So you can advise with confidence. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Woman what gives me confidence about Investment Decisions . Rigorous fundamental research. With Portfolio Managers focused on the long term. Who look beyond the spreadsheets to understand companies, from breakroom to boardroom. Who know the only way to get a 360 view is to go around the world to get it. Can i rely on deep research to help make quality Investment Decisions . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Talk to your advisor or consultant some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. Welcome back to closing bell. We are awaiting comments from President Trump. He will sign the u. S. Trade agreement at the white house you can see live photos here now. And well bring you there as soon as that begins. But in the meantime, we have 24 minutes left to go in trade for mondays session, some of the most highly anticipated ipos have been struggling out of the gate if youve been watching this program, you know that so all of this week on cnbc, were looking at the next crop of unicorns, some of the most valuable venturebacked companies. Lets get to Cnbcs Deirdre Bosa at a closer look at airbnbs, one of 2020s most anticipated ipos throughout the day, weve been talking about how airbnb is different from some of the other highprofile unicorns. It could be pursuing a direct listing next year, but there is one critical way in which it could be similar and thats regulation. Like, ridesharing, home sharing is facing increased scrutiny from lawmakers in different cities in new york, regulators are cracking down on home sharing and the company is being blamed for the citys housing shortage. Where it differs on this than, say, uber is its willingness to work with those regulators and that has allowed it to operate in hundreds of cities around the world. Well discuss more about airbnb next year well talk to airbnbs head of policy and public affairs, you dont want to miss that interview next hour. But new data from deal logic shows that companies thatwent public this year are now trading about 5 below their initial ipo price compared to the 18 rally in the s p 500 this comes on the heels of a recent report from Goldman Sachs saying ipo Stock Performance is at its worst level since 1995. For more, lets bring in mike volpi. Thanks so much for joining us. The question everyones asking is, what damage has the failure of wework, the likes of uber and lyft that are down significantly from its ipo price has done to the prospect of other potentially ipos in all candor, i dont think that those three ipos, and in particular, weworks failure has a massive impact on the ipo mark market i really think the issues are much more specific to those companies. If you take a look at wework, uber, and lyft, they have some common characteristics all three of them are extremely cash consumptive Business Models they are not very profitable at this point in time, and they are built on sort of the notion of build it and they will come. If you look at some of the ipos that have, in fact, been successful, whether its a data dog, these are someone that are very close to profitability or in some cases have been accidentally profitable. And it really shows you that the appetite for Public Market investors centers around companies that can present to them a profitability horizon thats realistic as opposed to one who are saying, were going to spend, trust us, at some point, theres going to be profitability. To me, it really shows a sense of companies and the Public Markets really becoming much more discerning about what theyre seeing offered up to them in these Public Offerings were you surprised, then, that peloton got away successfully because i guess it is one of the companies that might have fitted the other basket you just suggested. That its a promise of profitability, but not for many year years. Yeah, look. At the end of the day, management teams are responsible for convincing the Public Markets and investors that the profitability is actually there. And a lot of it depends on what the cost of Customer Acquisition is or the Gross Margins and the products that they offer i think peloton did get away with it. They got away with it probably because if you look at the scale of the lack of profitability that they had, it showed something a little more moderated than others, which if you ask certain investors, they feel maybe uber or lyft or wework may never be profitable and obviously thats not a viable publicly traded company so i think there is a gray zone and some nuances, but the more you can show shortterm profitability, profitability within the next 18 to 24 months after ipo, the more you have an appreciation from the investors that are going to be buying your stock. Profitability a certainly one metric that could be used, but of course, when youre just going public, investors or potential investors are limited to the Financial Information that they have and it seems like private valuation after the wework debacle is something that we should not be looking at is that a warning for investors Going Forward when trying to evaluate these ipos . Look, i think that there are some fundamental differences between private investors, the investors that have backed the weworks, ubers, and data dogs and so forth and public investors and private investors tend to look more for vision, strategy, a very longterm nature to assessing these businesses Public Markets, realistically, a looking for nearerterm profitability. They are very different characteristics. And in that sense, public investors tend to be much more forgiving, whereas their horizon is longterm, whereas public investors are more punishing to companies that cant show that profitability. And that commensurate growth rate with margin structure so really, thats where the rubber meets the road. In some sense, when we do a lot of early stage investing, and when you do early stage investment, its like having a little kid some day theyre 21 years old and the rubber meets the road and thats the equivalent of a Company Going public at that point in time, companies have to show much more of an ability to shape themselves as longterm businesses rather than promises or vision mike, i know that index ventures is an investor in robin hood, i want to ask your view on the likes of the fact that Charles Schwab and e trade have all cut their trading fees to zero how damaging that to robin hood . We dont think its that damaging robin hood introduced commissionfree trading three years ago. They innovated in a market that hadnt seen a lot of innovation in decades and they will continue to win not just on what they did three years ago, but really on the cycles of innovation that they introduced over the next year and years to come. I think fundamentally, if you look at consumers and the nps scores, the net promoter scores that they associate with their Financial Institutions they do business with today, they arent anticipate consumers dont like doing business with bank of america and chase and wells fargo. And theyre looking for a next generation of providers of those Financial Services robin hood is one of them. Its certainly one that were incredibly excited about and i think that the innovation theyre going to have in this market goes far, far beyond commissionfree trading. And so we think the company will be just fine well have to leave it there. Thank you for joining us its a pleasure thanks for having me dan, how are you evaluating these ipos it seems like theyre so binary. You have the beyond meats and the zoom video or a wework that just never even happened i think that first group youre talking about, these are much smaller floats, pretty unique companies i think when you think about uber and wework, these were massive deals. These companies had raised collectively 20 billion in the private markets before they ever came to the public equity market so at that point, they had been a lot of information about the economics of these companies and the fact that, you know, the boards of these companies were letting these Companies Get away with just telling investors that they may never be profitable or they cant tell you that they are. Thats when the rubber hit the road they started meeting with public investors. I think the difference this time is about the size of those deals, the lack of clarity about profitability, and dont forget, there are these crossover investors, these massive mutual funds have been buying these shares and those companies for years now. So there wasnt such a great demand to buy it if it was going to be at an evaluated price level. To me, this is a very unique time i think wework will be a footnote when this market cycle is, you know, dead and over, i think wework will have a little asterisk next to it. Unique time, i like that. Coming up next, stick with us, because weve got your last chance trade you should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. Weve got 13 minutes to go until this market closes so dan, what is your last chance trade. Heres one that i think you want to start picking at its lyft. We were just talking about these names. Listen, these are very Disruptive Companies obviously, lyft is losing a lot of money and theyre also gaining chair in north america i think the big difference between lyft and uber is that lyft is only focused here in the u. S. And then ultimately, the path toward autonomy, which may be 5, 10, 15 years away. I think its a pure play on rideshare, which is going to be around for a while, okay if they can demonstrate when they report on october 30th after the close that they are continuing with this rational pricing and they can articulate their path to profitability sooner than expected, i think the stock trades higher after that and it might put a floor in this thing thats down 50 from its opening print on its ipo day since back in march. I like the management here, i like their focus on north america, i cant tell you that i like all of those losses, but i think lyft is a company thats going to be around and disruptive for many years to come and i think you can start dipping your water into that here you have 12 minutes left. Were down 64 points on the dow. And we will have uninterrupted coverage of the final minutes of ade. Well take you inside the market zone, next woman my reputation was trashed online. I felt completely helpless. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. When i see obstacles, i create opportunities. soft music when i see adversity, i find a way. When i hear never, i say now. [announcer] Southern New Hampshire university is education made to fit your goals with over 200 degree programs, flexible class schedules, and some of the lowest online tuition rates in the nation. cheering so when i face barriers, i can break through. [announcer] breakthrough at snhu. Edu. You should be mad at airports. Excuse me, where is gate 87 . You should be mad at nonseasoned travelers. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. Welcome back just over eight minutes left in the trading day. Were now in the closiclosing market zone, commercialfree coverage of all the action going into the close well tell you everything an investor needs to know in these final minutes and break down the Market Action after the close as well youll see some of the big movers constantly changing and theyll be updating on the right side of your screen. Senior markets commentator mike santoli is here to break down these crucial moments of the big trading day. And today, weve got dan nathan from risk reversal markets, hes here as well lets kick things off with apple. Josh lipton in San Francisco with more. Hi, josh reporter yeah, courtney, a surge for apple this year. Listen, that stock is now up 45 . Youre up 60 from that low in early january. And now it is within striking distance, courtney, of that alltime high reached last october. Remember, 223. 47 in part the move higher due to positive data points weve been seeing about that new iphone 11 lineup today the team at nomura out saying that solid demand for the iphone 11 mitigates risks of q1 pothole and that investor focus may now shift to the 5g iphone expected next year nomura rates apple positive. Josh, thanks very much for that mike, the interesting thing here, of course, is that its a bearish note becoming less bearish, coming up from 185 to 205, still well below where its trading today. I think that also reflects there is still somewhat of a cautious overlay of sentiment toward apple, even though the stock has performed well were near a high. We did last week, thiel take a look at the aggregate price target along wall street analysts its right around where the stock is trading not to say that theyre wrong or too cautious, but it does show you that people have defaulted to apple because its relatively stable, quality Balance Sheet suppose real excitement about the product line we are seeing the broad markets soften just a little bit as we approach the close we are down 77 points on the dow and have six minutes left. Lets move on to energy, one of the worstperforming sectors today coming off of a rough week with the group down more than 26 from its 52week highs the biggest laggards today include noble energy, devon energy and apache. Dan, where do you stand on the energy sector. Not particularly constructive when you think about that spike that we had in crude a few weeks ago and weve given it all back, that was on geopolitical sort of tensions you look at Global Growth and the data were seeing, its really not supportive of crude prices so when i look at that, the Energy Complex here in the u. S. , some of the worst charts in the u. S. Market are right there. Have you looked at schlumberger and halliburton, have you looked at what chevron and exxon are given up i dont see anything there that says, given the macro backdrop you want to be exposed right there. If you want to see another dip lower in global data, crude oil will be leading the way. Energy is one of the worstperforming sectors of the day. Lets turn now to General Electric and the companys plans freeze to freeze pensions for 20,000 workers ge will freeze pensions for 20,000 u. S. Workers and offer pension buyouts to 100,000 former employees the plan does not affect retirees already receiving pension payments the goal here is to further derisk the companys Balance Sheet and shore up capital as the ceo tries to restructure the company. Ge says this plan will cut its pension deficit by up to 8 billion. Bank of america analysts believe it should be accretive to earnings, although the stock is unchanged right now, it also comes as a number of Companies Offer pensions continues to decline as more switch to 401 k s, as they are seen as a more cost effect iive option for employers. Guys, back to you. Seema, thank you. We have just under five minutes left to go stocks are trading lower 60 points lower, to be precise, on the dow, down 0. 2 . If you are just joining us, we are in the market zone, where we bring you uninterrupted commercialfree coverage into and after the closing bell on the righthand side of the screen are the biggest winners and losers of the day. At the bottom of your screen, you can see a preview of the next few stories were going to cover as we approach and go through the close. The uaw strike against General Motors entering its third week with uaws Vice President saying contract talks between the two sides have, quote, taken a turn for the worst. About 48,000 uaw members have hit the picket lines General Motors is down about 10 since the strike ban on september 16th dan, what do you make of General Motors and the broader automotive sector at this point . Is this a place you want to play not really. If theres no end in sight, this reminds me a little bit of the Government Shutdown that we saw last year in q4. When you think about it, theres 48,000 workers that are not working right now, but the Auto Industry here in the u. S. And the associated industries, there are about 10 million workers and they are being depressed right now. When you start to think about some of the Consumer Confidence data weve seen, some of the weaker, just, you know, manufacturing data, and just in general, its just a bad time for it so it would be great to kind of get that thing scooped and put behind us. But i dont see a whole heck of a lot of optimism in the auto space right now. We topped out at 17 million cars in the u. S. For years now. And i dont know where the growth comes from. One outlier i would point out this morning, because its always doom and gloom out of germany, mercedes car sales actually beat expectations in china. Rose 13 for the quarter they were kind of soft elsewhere, including in europe but just that question of whether china could surprise to some expectations. There is a take that basically the china numbers have bottomed in general and people have gotten, i think, pretty complacent about the possibility of for things to improve much there. It could be that we have got just over two minutes left of trade. Lets get to mike for more on how the market internals have shaped today yeah, its been pretty soggy, not big moves in irt direction for the index. But if you look at the new york Stock Exchange, its pretty solidly to the downside. That has eroded a little bit throughout the course of the day. You wouldnt say its very dramatic, on a volume basis, about 40 up to 60 down i want to take a look at treasuries today because you get a rising treasury yields and normally that is a backdrop for equities rallying, but look at the twoyear note yield. Were up to 146. That essentially brings it right back to last thursday, before the ism Services Index came in light and we had that plunge down people thought the economy was in worse shape and the fed easing was getting repriced. Now were right back to that it seems as if it was a shake out of expectations about the economy. Weve somewhat recovered that by now. That chart looks like the shrugging emoji. Exactly lets get over to Bertha Coombs at the nasdaq for the biggest movers there hi, bertha its a bit of a shrug today for investors, that enthusiasm we saw this morning over the hopes for the china trade talks really fading and the consumer nameses have been the ones that have been taking it on the chin today. Not on huge volume, but we do recall about a week from now, we will start to see those new tariff increases kick in meantime, software is about the only thing thats sort of a little bit stronger in terms of tech today workday has had a fairly strong week starting this month, but Software Services have lagged, things like chip and biotech fractionally higher. Over to bob at the nyc two modest rallies on some very vague trade headlines, but it didnt last very long the conviction rate on the trade this week is very, very low. Weve had low volume and frankly not great trading. You can see the rally there in the middle of the day here look at the china etf. Thats what i watch for conviction here. Same situation, modest rally, selling off, low volume, low conviction retail searching for direction, but some nice moves up in some of the big retail names today like signet stage stores and closing not far off of the opening lows we saw for the Dow Jones Industrial average, down 99 points at the close welcome back to the closing bell. We have closed here at the Stock Exchange down 97 points on the dow. A little bit of selling there into the close only one higher on the s p, the other ten lower. Were now going to go to President Trump, who is signing the u. S. japan trade agreement at the white house in the roosevelt room lets listen n new u. S. japan trade agreement and the u. S. japan digital trade agreement. Digital is becoming a very big factor in the world. These two deals represent a tremendous victory for both of our nations. They will create countless jobs, expand investment and commerce, reduce our trade deficit strarnlly, promote fairness and reciprocity, and unlock the vast opportunities for growth in the United States, these deals are a game changer for our farmers and our ranchers we love our farmers and we love our ranchers weve been work vrg haing very i a moment, ill be really honoring a lot of the folks in the room that are here with us, from farm country, ranch country. And were going to be witnessing an historic signing by ambassador Robert Lighthizer and ambassador from japan, a long trip, but he just got here, sogiyama of japan, and were grateful to both of you for the outstanding job youve done and all of the people that were involved with both of you, your staffs and your representatives. Thank you both very much bob, thank you thank you very much. Its a lot of work were also delighted that secretary of transportation elaine chao is here. Wheres elaine where is elaine . Hi, elaine shes busy doing a fantastic job. Thank you very much, honey deputy secretary of agriculture, steven chenski is here wheres steven steven, hi, steven great job. Thank you very much. Spoke to sonny last night. Were doing well a very great gentlemen, a very popular man, too, in the world and especially his wonderful state, steve danes i saw you back there hi, steve. I also i saw your poll numbers. You are strong youre doing good. And thats a good decision by the voters i can tell you thanks, steve. Representatives Jody Arrington and kevin hearne and thank you fellas for being here, as well as north dakota governor doug bergam doug, thank you. Thank you, thank you, doug good job say hello to your wife i will. North carolina Lieutenant Governor dan forest. Hi, dan. Were just going to prove that last amount of money for the hurricane. You know about that, right thank you, mr. President. Iowa Lieutenant Governor, adam greg adam great job. Thank you, mr. President. Great job great job. And many other state and local officials. We have some tremendously respected people here, political people i want to extend a special welcome to all of the leaders here today representing American Farmers and ranchers benefiting from this deal theres a tremendously important deal and a very big deal, including those from our beef, pork, poultry, wheat, dairy, and corn associations. I would particularly like to recognize tzipi, tzipi duvall, hes been with us from the beginning. Tzipi. Youre just listening to President Trump in the roosevelt room as he signs this trade agreement with japan we will listen in and bring you any relevant comments. But now were going to move back to the market day and talk with dan nathan from risk reversal advisers hes still with us and Michael Yoshikami from destination wealth management. Of course, mike santoli remains here, as well. Mike, i liked your metaphor for todays market its like a new relationship what was it like today well, where you say, isnt it night, we dont have to talk, we can just be together its like waiting for an awkward silence to end the market does not have a good read on what the next good bit of intersection direction is we got a couple of fleeting balances, but in reality, we kept most of the thursday friday balance. I think a lot of people are putting a lot of credence in that reversal we got to the upside after thursday mornings weak economic numbers. But we still remain kind of stymied a few percent above the highs. This 2940 level in the s p, were back to it again it goes all the way back to last september. We saw a little bit of selling there into the close does that signal anything for whats to come tomorrow or market jitters that just came ahead of the trade talks we were 2 to 3 off the lows from last week and those were on commentary that we may have some kind of deal thats somewhat unexpected so i would full y expect if we get to the end of the week, that we test those lows but remembering that were just a few percent from the alltime highs. Its far from a disaster i just want to make one point. What mike said as far as Interest Rates today, i think it was pretty interesting the tenyear, 151, 156 or something, but the yield curve did flatten a bit. And what didnt like that . Banks didnt like that, wilf thats a group that when we talk about rotation that weve seen, had a good quarter last quarter, but once that yield curve inverted, the bottom kind of fell out thats a group that you want to keep a close eye on. Michael, whats your take on the headline from last week, bad data, but is that offset enough by expectations for more rate cuts yeah, i think it is i think bad data is really, frankly, an overreaction i think that headline is just way too dramatic the economy is actually not as bad as people are thinking, right now. It may worsen in the future and well see how the trade situation goes, but i expect theres going to be some Minor Movement on the trade side and if you look overall, the economy is doing okay. We still have reasonable corporate profits this quarter, as was said by a guest last hour, the underlying unemployment report was pretty strong i think it is a positive sign that the markets bounced back after those lows last week i think theres still plenty of money on the sidelines looking to get in at any sign of weakness Goldman Sachs was out with a note today saying that the economic run is not over and the u. S. Is, quote, not close to recession. Meanwhile, jpmorgan saying, one should not expect a u. S. Recession over the next 12 months and just last week, citigroup with a note saying that a bull market is old, but not dead. Mike, whats your take on the sentiment of the big wall street brokers, perhaps those three are not totally reflective of a bit of a shift lower i would say not entirely, but what it most tells me is the questions theyre getting from their clients. Because three three reports were answers to the overwhelming questions that Institutional Investors are asking, which is, is this the end of the cycle and thats been the fundamental question at the crux of the markets, really for months now so i do think it shows that theyre saying, look, the weight of the evidence right now does not say were tipping into recession, but in general, i also dont think you can see wall street sentiment projecting a real reacceleration from here or a lot of upside citi said, yeah, we think maybe we can go up 10 or so in the next year or plus. That qualifies as very bullish, even though thats essentially saying, youre going to get roughly the Historical Rate of return in the market over the next year. And that sounds very aggressive. I think it tells you, you have relatively muted expectations out there. Michael, it says here in your notes that youre paying an awful lot of attention to Interest Rate policy, as well. We were speaking a little bit about what was going on with the yields in that market. Do you think the Federal Reserve will keep us from going into recession, using that Interest Rate policy tool that they have at their zpoedisposal and i think theyre going to help and cut another quarter percent this year and see what happens. But i think it comes down to whats happening in trade. If you have a freezeup of infrastructure spending, capex spending, not only here in the United States and around the world and particularly in china, i think thats going to be more harm than perhaps the Federal Reserve trying to slow down their Interest Rate cuts i think the fed can do what they can do, but in the end, if you have frozen trade policy and a situation where capex is just not being expanded, and companies are very slow to expand their services, i just really think youre going to have a real difficult time staying out of a downturn. Dan, quick final thoughts in terms of what you would be deploying cash into for the rest of this year what stands out . Treasuries. Were going to zero. Its just that simple. Jay powell back in july said this was a midcycle adjustment with that first rate cut in ten years. Its becoming a ratecutting cycle here so the longer this trade war goes, the worst the Global Economy does, and the fed is going to have to do everything in their power to kind of stimulate demand and so to me, i just think that, you know, it hasnt been a great opportunity to buy the s p 500 within a couple of percent of its alltime highs over the last 20 to 21 months or so. So i wouldnt be doing it right now given all of the uncertainty. Thank you for joining us here today on the closing bell. Coming up next, our exclusive interview with the ceo of campbells soup hell join us live at post 9 in his first interview since taking the helm of that Company Closing bell is back in 90 seconds. Welcome back campbells soup celebrating its 150th anniversary here at the new york Stock Exchange. The stock rallying in the past three months as the company showed signs of a turnaround, coupled by strong sales in its snack business and campbells soup Ceo Mark Clouse joins us now exclusively in his first interview since taking the helm in january thank you for joining us, congrats on 150 years and congrats on a new job. Thank you its great to be here and i want to start by saying congratulations to sarah i was hoping to get to see her and she is very sad not to be here but thank you for joining us anyway and lets start with the point we just made the strong Stock Performance the last couple of months. You showed 2 organic growth in the most recent quarter. And does that mean the turnaround is complete i would say were still in early innings, but i do think just ending our fiscal 19, there was a couple of meaningful pieces that we put in place. I think first and foremost, it starts with doing what he say were going to do. Delivering steady performance throughout the year, culminating in a Fourth Quarter that did demonstrate some improvement versus a year ago was incredibly important to begin to establish that confidence and rebuild some of the trust in the company. I think the other big accomplishment in 19 was the divestiture of the fresh business and the International Business i think it does a couple of things for us. One, of course, the obvious, it enables us to take a big bite out of our debt. We know thats something quite important for many investors and for the company. But it also is a big enabler to drive focus. And if you think about where we are as a company now, its a pretty focused branddriven portfolio. Were in one geography, weve got two divisions in snacks and meals and beverage and really 13 categories that if we can win in those, you know, driving our resources and our focus, both human and Financial Capital in the right spots, im feeling great about that foundation now weve got to demonstrate that we can execute consistently, get the innovation machine going, and really keep moving forward in a steady, sequential way you mentioned the divestitures would you be looking at other possible parts of the business brands or entire segments . Is there more to go there . You know, i think for the most part, were in a really good position. I think at this point, weve got our debt level where were beginning to feel very comfortable with where we are, and remember, this is a pretty cash generative business on its own. So our ability to control our own destiny is important i think relative to other parts of the business, we continue to look at things, whether theyre core to what were doing, but for where we are now, i want to focus on getting the divestitures complete and really focusing on driving the core business i think thats where the biggest opportunity is soup looks like its stabilizing, perhaps improving talk us through whats happening there. One is, its a business that quite frankly in the world of categories that we debate how challenged they may be, i would like to hand on soup its a consumerdriven segment the overall consumption within the category is up weve just not been getting our fair share the other thing that i like is that its also a category, arguably, weve not been supporting at the level that we need to. So returning focus to that business with a category that i think has great opportunity. Not just in core, center of bowl leading, but also in adjacenedat sis like cooking and snacking as well it does sound like an offensive position as opposed to your primary longterm growth focus, when you described in your first answer your business, you said, snacks, meals, beverage, you didnt mention the word soup. I wonder when you came in as the new ceo, if youve ever considered changing the name of the company, campbells snacks it might get you a better multiple its a question that weve been asked in the past, but i love the tradition of soup its what the company was built on its core role that it plays in our portfolio is incredibly important. And remember, i think its important, we are a portfolio. If you think about the business today, right, half of the business is snacks we get that business continuing to grow on the rate its on while also, even in a world where were stabilizing soup, were delivering our longterm algorithm on the top line. And although i think the potential is better than just that, i think thats a great way to lay out this first year or two of the journey that were on arguably, too, if customer convenience has been one of the things that people have been looking for, soup isnt the worst thing. I was going to ask, though, too, the conventional wisdom out there being that there is a general kind of chilliness towards these legacy brands. Everyone seemed they thought they had to race towards these newer, fresher options and that made acquisition multiples very high where are you viewing that right now . Youve had some organic growth other companies, as well has there been a change in that orientation . I think people are realizing that perhaps the issue hasnt always been the brands, its been a little bit of our stewardship of these brands. You know, one of the things weve learned a lot about soup is that the issue that consumers have with the opportunity to move back to this category and these businesses isnt some deepseated feeling that the brand doesnt match their life, its, are we delivering the products and giving them the role that that brand is going to play in their life in a meaningful way i think theres always going to be a role for that innovation and some of those disrupters, but i think that theres a lot we can do with these core brands the fabric of the nation businesses,ing if we can breathe life back into them and make them nor relevant, theres tremendous opportunity for us to do a lot with them can you provide some examples of combining this with Innovation One of the things thats a little bit sobering, im going to give you a fact right now thats going to make you tremble a little bit millennials have turned 40 so one of the things thats interesting about this dynamic is they now have families and budgets. Theyre balancing a lot of elements their principles on health and wellness are true, but their willingness to play with mainstream brands to answer questions. So for example, on a swanson business, which is definitely a mainstream broth business, are bringing things like bone broth to bear allows us to bring a trend that is highly relevant with millennial consumers, using innovation to bring them into a franchise that perhaps three, four years ago, they wouldnt have been as interested in doing. So the idea about understand wrg consumers are going, using legacy brands, but infusing innovation to bring the relevance that consumers are looking for is a great opportunity for us where do you stand on fake meat well, i think the facts are that plantbased diets are quite powerful i think the Health Benefits and the recognition among consumers is very, very clear that plantbased protein is a very, very popular trend thats growing. And you can use products like ours where plants are critical ingredients to Bring Solutions to help support that diet as well one of the things thats interesting about our portfolio is we have v8, plantbased beverages wildfire plantbased beverages are cool and now were being able to see that help us in rejuvenating an older brand. I think theres a big role for it to play and theres a lot of different brands we can go out deliveri ining it hows the relationship going with third point and dan lope . I think we feel great about the Board Members that have joined our team. So kurt schmidt, sarah hoffstett hoffstetter, those have been terrific additions to the team and its pretty easy to find Common Ground in the world of knowing that all paths forward lead through improved performance. We all agree on that together and i think thats been a great opportunity. Its going well and very constructive before we let you go, where do you see the state of the u. S. Consumer i think obviously its a bit of a turbulent time. But i think the strength of the consumers that were seeing as it relates to the engagements with our brands is quite strong. And even in the world where there may be the threat of recession out there, our portfolio meets a lot of needs in a variety of a lot of different acquisitions so so far, i havent seen major change, but were watching closely and feel great about the way the business is positioned thank you very much thanks, guys. Thanks for joining us here on the closing bell and congrats again, sarah well break down the charts to see what wall street is expecting from earnings season and later, well discuss rbslans closing bell back in a couple of minutes lets send it over to mike santoli for this has third dashboard of the day talking about the few and the many, not so much the few versus the many, but basically, a different view of the earnings outlook, whether you look at the overall market as a big block in aggregate or you look at the Typical Company out there. Goldman sachs strategists had a pretty good chart here of the median s p 500 quarterly Earnings Growth. Thats this orange line. The median company, if you look back to last year, when the overall market was growing more than 20 , thats the barse you see the median company was slightly underperforming what the s p was doing. Here, this is the past couple of quarters and the Current Quarter were about to hear, you see a net projection of a decline in s p earnings on a market cap weighted basis but the Typical Company is now projected to show slight growth and thats supposed to continue for the next couple of quarters. That means that the overall picture is being weighed down by some very large net earnings declines and perhaps it explains the resilience of the market as weve gone through this period of flatteningout Earnings Growth a median company meaning having the companies were earning more and have a earning below. If the big ones miss, were still in trouble without a doubt the overall market cap of the s p 500 is probably going to go down but its showing you that the ingredients for the typical stock to perform might be there, even if the index has a struggle okay, mike thank you very much. Still to come on closing bell, airb bs head of Public Policy will join us his companys plan to help striking gm workers to earn some extra money. And later, well discuss the future on ondemand health care when were joineby td he ceo of teledocs who provides Video Conferencing with doctors. Stick with the closing bell. Weve got a market flash on amberella. Shares falling after hours on a reuters report that the Commerce Department is preparing to add 28 Chinese Security companies to an economic blacklist, including company hickvision ambarella is a key supplier. You can see shares down around 8 thanks very much for that time for a cnbc news update with sue herrera hi, sue. Hello, wilf hi, everyone heres whats happening at this hour Bernie Sanders is getting back into his routine after being hospitalized for a heart attack. The democratic president ial candidate and his wife, jane, were spotted leaving their home in burlington, vermont, this morning. He told reporters hes getting back to business getting back to work a little bit right now. But mostly, what im trying to do is i used to walk a good distance every day, and i got out of that habit and im trying to get back into it. So thats what im going to do right now. All right . Nearly 300 people are very happy to be safe and sound in bangor, maine, after a United Airlines flight had to make an emergency landing. United says the cabin pressure issue forced the amsterdambound flight to land at the bangor airport this morning the plane was flying from San Francisco. And mattel teaming up with gofundme to try to close the dream gap with their career of the year doll, judge barbie. The term was coined when researchers discovered that girls start to doubt their intelligence at about the age of 5. Judge barbies aim is to empower people and partners to help close whats called the dream gap. You are up to date thats the news update this hour courtney, ill send it back downtown to you. Thanks, sue mattel has been doing a lot of innovative things with the barbies, what that it present and represent. Absolutely. Its pretty cool. Absolutely. Well the United Auto Workers were actually going to just take a moment and go back to the president in the roosevelt room President Trump is taking questions after signing the trade agreement with japan and their supply chain is really cracked and broken. And they want to make a deal now theyre coming to see us on thursday and friday. We think theres a chance that we could do something very substantial, bob i think you think that well see what happens but in the meantime, were taking in billions and billions of dollars of tariffs every month. And we never took in ten cents from china now were taking in billions of dollars, and tens of billions a year and on october 15th, as you know, it goes up from 35, it goes to 35 its going to its going to raise fairly substantially we could always do it a lot more, but weve decided not to so thats the story. And i think that they will theyre coming to make a deal. Well see whether or not a deal can be made. But its going to be a fair deal look, weve lost 500 billion a year for many, many years on average. If you include intellectual property theft and all of the other things that took place, its incredible that past administrations could have allowed it to happen were talking about 500 billion, not million thats a lot, too 500 billion dollars a year for many years taken out of our country we rebuilt china they did a great job and i dont blame them i tell president xi, i dont blame you one bit. I blame the people that ran this country to allow that to happen. And they understand that but we dont let that happen anymore. So well see what happens. Were going to have a very important meeting and they have their top people coming in and i have my top people doing the job. And if i dont think theyre doing a good job, ill fire them and ill go over and ill take their place, okay . Yeah, please on hong kong, sir, are the hong kong protests linked in your view to the china trade negotiations in any way . Well, wed like to see a very humane solution to that. I hope thats going to happen. And, you know, hong kong is very important as a world hub, not just for china, but for the world. And you have great people over there. I see theyre flying the american flags they even have signs make china great again, make hong kong great again, im saying, get those signs. But they have tremendous signage, and they have a tremendous spirit for our country. A lot of american flags. A lot of trump signs i would just like to see a humane deal be worked out. And i think president xi has the ability to do it i sort of said that i think if he met hes a very convincing man, and i think if he met with some of the leaders, that could be one problem you dont seem to have a specific leader of the group. But i really think they can do something. We just want to see a humane solution did you tell xi jinping in any way that you would be quiet about the hong kong protesters in the course of these negotiations no, i didnt, but i do say that we are negotiating. If anything happened bad, i think that would be a very bad thing for the negotiation. I think politically, it would be very tough, maybe, for us. And maybe for some others. And maybe for him. But, no, i think that they have to do that in a peaceful manner. Its i will say the first time i saw it, if you look a number of months ago, i saw 2 Million People ive never seen anything like it we talk about crowd size that was serious crowd size, right . The crowd size is much smaller now. So maybe thats saying something. But hopefully they can work out something thats amicable. Mr. President , would you accept a partial trade deal with china . Theres been some talk today about whether or not it could be headed in that direction well, its a very good question i think its not what we prefer, at all, they are starting to buy a lot of our Agricultural Products you see that theyre coming in very strong, on pork, also. Very, very strong. In particular, but on other products that so i dont know if you call that a partial we dont have an agreement. My inclination is to get a big deal weve come this far. Were doing well again, the fact that theyve done what theyve done with their currency, the devaluation, it really has not increased prices in and were talking china. It doesnt mean in all cases, that happened. Other countrys prices increased, but in the case of china, that hasnt happened. And they put a lot of money into their goods. They want to keep their people working. I understand that very well, but i think that we just have to see what happens i would much prefer a big deal and i think thats what were shooting for can something happen i guess, maybe, who knows . But i think its probably unlikely mr. President. On syria, on withdrawing forcing in syria, why are you siding with an authoritarian leader and not our kurdish allies well, im not siding with anybody. Weve been in syria for many years. You know, syria was supposed to be a shortterm hit, just a very shortterm hit and we were supposed to be in and out. That was many, many years ago. And we only have 50 people in that area, thats a small sector and i dont want those 50 people hurt or killed or anything i dont want anything bad to happen to our people and i told that to president erdogan, i said, dont hurt any of our people any of our people get hurt, big trouble now, a couple of things. I think theres a lot of pressure on turkey theyve been fighting with the pkk for many years theyre natural enemies. If you read today a couple of reports saying, when president obama started this whole thing, as you know, it was started by president obama, he created a natural war with turkey and their longtime enemy, pkk, and theyre still there, and theyre still hating each other beyond anybodys belief but i have told turkey that if they do anything outside of what we would think is humane to use a word a second time, we talk about hong kong, we talk about this, they could suffer the wrath of an extremely decimated economy. And ive done it once. I did it with pastor brunson you remember the pastor brunson . And they wouldnt give pastor brunson back and they ended up giving pastor brunson back pretty quickly their currency fell at record levels and lots of other things happened and he was going to have a very Good Relationship with president erdogan. I want to see it happen. I will tell you this, though, we defeated isis. And when i wanted to when we were at 96 and 95 and 97 , i sort of said, let the other countries in the area finish it off. And i was met with a lot of anger from some people in our country. I said, all right, ill finish it off and i got together with our generals i flew to iraq i got together and we did it very quickly, far quicker than any general from here told us we could do it. We have some great people over there, they did it quickly and i said to the European Countries, youve got to take your isis you know, we have 60,000, maybe even 70,000 people, that includes families, that includes wives of fighters that were killed we have many fighters that were killed in the battles. And we took it over 100 of the caliphate. I took over quickly. Nobody else was it was a mess when i came to office, and i think most of you would agree to that it was a real mess i took it over, but then ebs, what are we going to do with these 60 to 70,000 people that are that are being held and being guarded and we cant release them and many fighters, also and i said, i want them to go back to germany, to france, to different European Countries from where they came and i said to the European Countries, i said to all of them, take the people back and they said, no, no, no, we dont want them back i said, well, they came from germany or they came from france, take them back and theyre so used to the United States being a sucker, being a fool, were talking about billions and billions of dollars, youre talking about life, youre talking about so many things, so many elements. And elements of complexity, because theyre going to walk back into germany, theyre going to go back into these countries from where they came so i said, take them back. And they said, no. And i said, again, im going to give you another 30 days, take them back. And they kept saying no. Maybe they wont be saying no now, i dont know. So i told president erdogan, youve got to be its going to be your responsibility. Now, really, whos responsibility its really russia, its turkey, its iran, its iraq, and its syria and anybody else in the neighborhood, okay we call it the neighborhood. Its not a friendly neighborhood but these countries should do it now isis is the sworn enemy of all of these countries many of them, they hate far more than they hate us. Can those countries hate them at the same level as we do. Theyre terrible, terrible, savage killers i said, take them back but these countries are rich in most cases theyre powerful theyve got armies they can do the work but were not bringing 50, 60, 70, or even 10,000 people to guantanamo in cuba were not going to be paying them for the next 50 years or paying to take care of them for the next 50 years. So we told we did a Great Service to the world and a Great Service to europe in particular, where so many of those fighters came from. We said, take them back and, you know, unfortunately, like nato, they take advantage nato, as you know, i got the secretary general, stoleheim said and i think very loudly, secretary general of nato, said that because of what i did, they have paid over 100 billion more money toward nato defense. But thats still not enough, okay its still not enough, not fair. Because the United States pays far too much relative. And obviously, nato affects them more but like nato, like trade with the european union, which is a very tough group to trade with, very, very tough group, almost as tough as japan, not quite as much, i say, look, you take them back, youre not going to do this were not going to put them in Guantanamo Bay and put them all over our prisons right now were at a position where if turkey does anything out of what they should be doing, we will hit them so hard on the economy, but when you talk about soldiers, we only had 50 soldiers in the area. I think the area was its a very small area. And very small area, but we only had 50 soldiers there. I dont want them to be in a bad or compromising position and i will tell you this everybody respects our country again. If we want to go in, if we have to go back for any reason because bad things happen, but were 7,000 miles away, these isis people, whatever you want to call them, these people are right there. Theyre right there. Theyre touching many of these countries that i just named. Iran is an example hates isis and isis hates iran. Iraq, you know all about that. Turkey, syria, let them take care of it let them take care of it we want to bring our troops back home its been many, many years, its been decades, in many cases. We want to bring our troops back home and i got elected on that. If you go back and look at our specious, i would say, we want to bring our troops back home from these endless wars. And this is like a police force. Were not fighting, were policing were not a police force were the greatest military force ever assembled because of what ive done over the last three years with 2. 5 trillion, mr. Ambassador, weve spent on our military 2. 5 trillion. But were not going to be there longer and were going to be watching turkey and we hope that them and all of the other countries or some of the other countries, including the european union, goes in and does whatever theyre supposed to do with these captured isis fighters and families, okay mr. President mr. President , a number of republicans, including nikki haley and Lindsey Graham and Mitch Mcconnell were very critical of this decision today. Mitch mcconnell put up a statement saying, i wish you would exercise leadership and reconsider, and guested n edsugt doing so would be reminiscent of what the Obama Administration would do can you respond to that and did you consult with the joint chiefs of staff when you made this decision . Of course, i consulted with everybody. I always consult with everybody. If you remember, eight months ago, we talked about doing this and we kept 2,000 people there and slowly brought them out. But once we captured isis, yind see i dont want to stay there for the next 40 years. Im not going to do anything the end game will be the same. I have Great Respect for all of the people that you named. And they have their opinion. And a lot of people do and i could also name many more than you just named of people that totally are supportive. You see the names coming out people are extremely thrilled, because they say, its time to bring our people back home were not a police force theyre policing the area. Were not a police force the uk was very thrilled at this decision, as you know, they were over there, they have soldiers over there also. And others but many people agree with it very strongly. And i understand both sides of it, i fully understand both sides of it. But i campaigned on the fact that i was going to bring our soldiers home and bring them home as rapidly as possible. I, we, all together, you, we defeated and took over 100 of the isis caliphate everybody said that was going to be an impossible thing to do i did it and i did it quickly, because we have a great military now. When i took over our military, we didnt have ammunition. I was told by a top general, maybe the top of them all, sir, im sorry, sir, we dont have ammunition i said, ill never let another president have that happen to him or her we didnt have ammunition. Now weve captured isis, weve done what weve done, we had 50 soldiers in the area youre talking about and i said, weapon want to bring our soldiers back home its been a long time. Again, we were supposed to be in there for just a tiny spot, like a 30 to 90day period. That was many years ago. Its time. Mr. President sir the kurds themselves have lost thousands of fighters in battle its true and weve lost a lot of fighters, too. Can you guarantee their safety well, were going to try. If you look at some of the kurds, as you know, thats a natural enemy of turkey. Its, you know, specifically, as i said, i mean, they have natural enemies. Theyve been fighting each other for somebody said today, hundreds of years. I mean, one historian said theyve been fighting for hundreds of years. We interject ourself into wars and we interject ourselves into tribal wars and revolutions and all of these things that are very theyre not the kind of thing that you settle the way wed like to see it settled. It just doesnt work that way. But hopefully, that will all be very strong and strongly done. Were spending tremendous amounts of money i can tell you, the two countries that are most disappointed that were leaving are china and russia, because they love that were bogged down and just watching and spending tremendous amounts of money, instead of continuing to build our forces. We have tremendous new weapons under development now. We have weapons that nobody can even believe well be making some stops over the next four to five weeks. Some we show, some we dont show but weve rebuilt our nuclear, weve renovated and rebuilt nuclear. Were building submarines the likes of which theyve never been even thought of before. The genius of them hopefully, and hope to got, we never have to use them but we are doing what we have to do but weve been there for many years, many, many, many years beyond what we were supposed to be not fighting, just there just there and its time dom back home. But i can understand the other side of it but if you go by the other side, that means we should never, ever come home. We should never, ever come home. And you know, i have to sign letters often to parents of young soldiers that were killed. And its the hardest thing i have to do in this job i hate it. I hate it. Afghanistan, i signed one the other day, iraq, syria they get blown up by mines, they get taken out by a sniper. And i have to write letters to people and we make each letter different, each person is different. And we make them personal, but no matter what you do, its devastating. The parents will never be the same the families will never be the same people are killed. Many people are still being killed its going to go on that way for perhaps a long time. And were willing to do what we have to do, but there has to be an end game. And if you stay, its going to be the same thing. Eventually, youll have to leave, its going to be the same thing. So, i think what were doing is the right thing. A lot of people agree with me. A lot of people agree with me. And again, you go back and see my speeches, a big part of my speech, and always, when i won, what some people consider to be a surprise election, now i just see a poll that just came out where im up massively with independent voters i dont know if its this or because of the hoax thats going on with nancy pelosi and her, her friend, adam schiff. Hes another beauty. He got caught lying all over the place. He doesnt know what to do hes a mess. Right now, hes a mess and Everybody Knows it all you have to do is a little good reporting, youll see hes a total mess, because he got caught but we have to do the right thing for our country. Whatever it may be and i think thats the right thing. I respect both opinions. The problem with the other opinion is when we do we leave when do we leave were going to stay there forever . Jeff mr. President , the White House Counsels Office is preparing a letter to Speaker Pelosi about the impeachment inquiry. What do you hope to achieve . Well, first of all, the impeachment inquiry is a scam. The conversation that i had with the ukrainian president was a very cordial, a very good conversation the mistake they made, the opponents, the opposition, the democrats, the radical left, deep state, whatever you want to call them, they came out with a whistleblower report before they saw the conversation. Had they waited one day, nancy pelosi wouldnt have made a fool out of herself and she would have been able to say what i said, because when she saw it, she said, this is not what the whistleblower said a very, very con jeenl, nice conversation with a man that i like, and he ran on corruption because ukraine is known as a very corrupt country one of the most in the world, shockingly because i know ukrainian people. Its known as one of the most corrupt countries. And under the past leadership, it was having a lot of difficulty this gentlemen, the current president , the new president ran on the basis of anticorruption, as you know. I think it was his single biggest thing. And we had a great conversation. But it wasnt reported that way. The only reason i would have released a letter, because i think its terrible to have to release a letter that you have with the leader of a country i think thats a terrible precedent. But the whistleblower report or whatever the news was was so off, it was so horrible, i said, i never said that i said, let me see it. We have a stenographer report. We have a very, very wordforword report of what i said i released it. And almost everyone that read it said its either perfect or really very good, but its a very normal, nice conversation. Conversation and when you see that the president of ukraine, president zelensky said there was no pressure put on me whatsoever, his spokesman came out two days ago, there was absolutely no pressure put on the president. I didnt tell him to say that. There was no pressure. Just treertd the problem is i released it a day after they had already made their big statements, and, again, its a big scam and i think adam schiff should be investigated for what he did. He took to the great chamber, congress, and he made a speech and his speech was a fraud everything he said was a fraud he went out as though i wrote it he defrauded the American People he defrauded congress. He defrauded himself and his family he made a speech a horrible speech whats going on here i think hes having some kind of a breakdown because he got up and made a speech that borno relationship to what the conversation was a lot of people heard that speech and a lot of people thought thats what i said because they heard his speech. They are not going to read a three or four page conversation. They dont have access to it but i thought it was one of the i thought it was a terrible thing where hes going up, speaking as the president of the United States saying things that i never said. And the meaning was horrible the whole thought was horrible and then the whistleblower, he did through his committee, through himself, he met with a whistleblower they never said that they never talked about it and nancy pelosi knew all of this stuff shes as guilty as he is because she knew all that. She knew everything about it she didnt do anything about it. Ill tell you what, the they should really be looked at very strongly because what they did is unthinkable what they did to this country is unthinkable. Its lucky that im the president because i guess, i dont know what. Very few people can handle it. I thrive on i want because its so important that we get to the bottom we went through the whole mueller scam two and a half years we went through that and i had three, four days where it was like over and im walking in to the United Nations and they released it as im walking in, mr. Ambassador im walking in im going to meet i won name but one of the top leaders of the world and i see up on the screen and people start screaming about this scam called impeachment you cant impeach a president for doing a great job. You cant impeach a president for having the lowest and best unemployment number that weve had in 51 years. You cant impeach a president for tax cuts and regulation cuts and creating and even the ambassador would say the strongest economy in the world we have the strongest economy in the world. This is a scam and the people are wise to it. Thats why my polls went up, i think they said 17 point in the last two or three days i never had that one i never had that one so i think its very sad for our country. I think it makes it harder to do my job but i do my job and i do it better than anybody has done it for the first two and a half years based on results you look at not only unemployment numbers look at the employment numbers, jeff were up to 160 Million People are working. Now today we signed a deal with japan which is such an honor and you have a great country, a great, great country and to have you partake in our agricultural product and digital is a real honor for me, so thank you very much for coming all this distance and to be here and i look forward to seeing you for many years again please wish Prime Minister abe a happy birthday a very special man thank you. Thank you very much. [ applause ] that was President Trump there speaking in the roosevelt room after signing the trade deal with japan. You saw briefly there the japanese trade ambassador and also ambassador Robert Lighthizer of the u. S. Quite a wide ranging q and a issue. Trade came up, talking about the conversations with china starting up again on thursday and friday he says quote well see what happens. Mentioned october 15th the tariffs would go higher again saying a partial trade deal is not what he prefers at all would like to see a big deal but thats not necessarily looking likely is what he said but Kayla Tausche is ready to join us. What was your main takeaway . Reporter i think it was that exact quote that you just read, that the president said that he would prefer a bigger deal but well have the to see what happens. Its a noncommittal answer but not the no he offered just three weeks ago when asked by eamon javers if he would accept a partial deal he said flat out in that appearance no. But circumstances have potentially changed in the last three weeks with some weaker data on the menu manufacturing front and weaker chinese Economic Data as well and potentially proposal by the chinese this week to make some concessions. The president will see exactly what authors his principles will see what they are but we are expecting that potentially this week there could be some movement here. Now weve also seen some messaging from the chinese side that they are not willing to make the legal challenges that the white house needs to see but certainly President Trump who has been the final say and the variable, we should say in all of these negotiations certainly seems to be a little bit warmer to that idea than he was just a few weeks ago. Thank you very much Kayla Tausche for us in washington also of course comments on turkey where the president said he would threaten extremely decimated economy for turkey if they did anything inhumane, cited some tariffs they put on lbest wel back in a couple of minutes here on closing bell you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. But youre not mad, because you have e trade which isnt complicated. Their tools make trading quicker and simpler. So you can take on the markets with confidence. Dont get mad. Get e trade and start trading today. Keeping the night interesting, is all about setting the right tone. Lower carbs. Lower calories. Higher expectations. The light beer youve been waiting for has arrived. Corona premier. Welcome back mike, some final thoughts on the market we were down by almost half a percent on the s p in what was a yoyo session. Gave back early may when trade talks broke down new tariffs s p was a at 2945 here we are 2938 pretty defensive very cautious tone ahead of what were trying to find out about trade. Were out of time thanks very much for watching closing bell fast money begins right now. This is fast money traders are on the desk. Tonight on fast money is it time to rethink your Safety Strategy the one chart that has the chart master pumping the brakes. Investors putting the pedal to the metal on uber. Well tell you whats driving the action skipping breakfast why the most important meal of the day could leave wendys investors with serious digestion. The president talking about china trade deal lets get to eamon javers live at the white house with the very latest reporter the president was in the roosevelt room part of a signing ceremony for