Line with policy decisions with Market Expectations. And tech leading the charge with apple high on the back of bullish markets that are higher. S p up 1. 2 . Dow is up 232 points near the session highs joining us, mark tenler. Mark, trade was the mover as it was yesterday. More of it, day after day, the thing that continues to drive the market is the most recent news about trade. So, yesterday, there was less optimism about there potentially being a deal the market sells off today, theres less optimism, so the market rebounds but nevertheless, were stuck in this trading range of 28. 25, and 30. 25, right and i think its very unlikely that we break out of that range unless and until we actually get a trade deal and i think the likelihood of us getting a broad deal is unlikely i just dont think thats going to happen. It all depends what that narrow deal looks like. Or the october tariffs removed if theyre removed for good, thats bullish forponed all that great. Lets focus on the big stories, and khalayla tachie is following rye. Bob, well start with you. Highs out there, not a lot of new one. Target, one of the retailers great this year, ross stores, walmart, and very good group of stocks up, a new high for target oil is up, in the energy names like marathon, occidental, in the industrials, fedex, and the metals and the new low list a lot in the last several weeks. The tale of two stories if youre in the apartment business youre doing great new highs on member sx and all a part of the companys new highs. But if youre in the Shopping Center business, the opposite, new lows in signing property groups and mason one of the biggest shopper develops in the u. S. Not all reits acting the same way. Thank you very much, bob. China gearing up for talking, kayla tachie has the latest ambassadors are expected to brief robert lighthizer. Lighthizer in turn is expected to talk to President Trump on highlevel meetings tomorrow and friday and once to yields another truce but escalated by escalation on a number of fronts by both sides the variable on this time around is the same, and that is how President Trump chooses to respond. Wilf and courtney. Doll we fe we feel that the president s team is starting to fashion towards a partial deal did lighthizer like a partial deal well, i dont think at any point in this process have all advisers been on the same page with regard to what the best course of action is. To that point, you even this week had advisers coming out with different messages. On one hand you had larry ludlow saying if china closes the marketing caps then we may be able to put to rest the issues and then Peter Navarro saying, no, clearly deal or no deal. Theyre trying to see what it will take to get this agreement. Now, the fed is putting out its september minutes, just did so last hour highlighting a growing divide about how to frame fed policy in line with Market Expectations. Weve spoken with three fed officials here on cnbc since the last rate cut and asked all of them what they plan to do at the next meeting. I dont have to say today, in fact, i wont say today, because i think its really important that we really look at the incoming information that were going to get as we work up to the end of the month meeting so, i think this is a particularly important environment, where youre very attune to what is incoming economic and Financial Information telling you. I still have an open mind and more data until the meeting actually occurs. I dont think i should prejudge it at this point weve already had two easings, easings dont have impact immediately. Id go to the end of the year, id like to reserve judgment i dont like the prejudgment meetings well see how data come in if you guys are right and i should be more optimistic, ill certainly take that on board lets bring in chief economist at jpmorgan. Thanks for joining us. Thank you lets start with the minutes, what were your Key Takeaways and did it alter your expectation for future policy . Well, i guess the key takeaway was, as you said, there was a lot of division as to the appropriate course of policy, at least at the time of the meeting in september however, that shouldnt be too much of a surprise you may recall after the september meeting, we got the dots which showed all of the forecasts and showed a lot of division in terms of where they see policy going this year in that sense, the minutes arent all that they added a little color, but i dont think they changed the narrative all that much. I think we also have to remember, some People Matter more than others, right . Yesterday, we heard from chair powell who obviously matters the most and he was talking an onside risk from Global Growth and that they would act if appropriate to head off those risks. So that to me sounded like he was content with the market placing and a cut at the end of the month which it is. So it didnt sound like he was really pushing back against that i think among all of the votes that counts, his counts more and i think thats where the committee is going in terms of minutes, i dont think they changed the story relative to what we knew at 1 59 we talked to pour ed ted to e bills. He said its not qe. Well, its qe4, except what theyve already done i think its already on a limited scale. Nonetheless, it looks like the fed is definitely cueing and theres a 50 ish probability of a second cut before the end of the year i think thats likely as well. So, i think the fed has just committed and they continue to communicate the fact that they are ready to step in and make sure that the economy continues in this expansion mode, especially given the fact that a lot of this economic state da has been deteriorating these ism numbers were not good, right . Mike, do you think it was as much as qe or something less significant . No, i definitely dont think it was qe. Qe is buying longer term bonds to push down longer term Interest Rates if theyre buying treasury bills that wont affect longer term Interest Rates from 2007, when the Balance Sheet normally expanded to meet the publics demand for liquidity whether reserves or currency so i definitely dont think this is qe. What about the fact we did hear specific mention from powell about the yield curve, i think more so than before about possibly being rejected or resteepen it well, theyve talked about the yield curve as a signal of pending recession. We saw that in the minutes obviously, there are factors conflating the signal there a little bit a big part of that is global Interest Rates and negative Interest Rates around the world which is leading to flight the capital into the u. S i think the debate is still open i guess we kind of split the difference we do think the curve is signaling slower growth. But we dont necessarily think its signaling recession now mike, powell kept saying the fed will act as appropriate. Is that enough does he need to be a little more transparent to give us future guidance well, i mean, the decision hasnt been made its a committee decision, theres more data to come over the next three weeks but i think right now, the wording and the body language is consistent with the wording that useful seen ever since the midsummer where they pivoted in a way that signaled further easing i dont think this is a game of code words but right now the language sounds like its incumbent on the data, to the upside for them not to ease by the end of the month, in my opinion. Im impressed that you read this body language as well thats a tough skill my question, michael, in terms of the data over the last week or two, do you think its gotten meaningfully worse or not . I dont think its meaningfully worse its been slowing over the course of the year Third Quarter gdp coming in at 1. 5 and private payrolls running around 120,000 per month all of that is quite slow than it was from the beginning of the year and last year its not falling off a cliff, but it is slowing. And i think you saw that today in the job numbers that are edging lower its not a free fall by any stretch of the imagination, but an economy thats slowing. Michael, great to see you after the break, is wall street turning bearish on fedex . Well break down the sentimentship next and later, well speak with one analyst who just slashed his estimates on netflix by 20 . And as we head to the break, heres a data tracker. Missing estimates 0. 4 rise and the jolts read from 7. 05 million in august to 7. 2 million. Well right back with closing bell. Make fitness routine with pure protein. High protein. Low sugar. Tastes great high protein. Low sugar. So good high protein. Low sugar. 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Weve got about 46 minutes let to go in trading the dow is higher, almost at session highs, by 240 points at this point lets check on individual Market Movers lionsgate reportedly considering slitting off stars through a separate company or other vehicle that stock is higher by 4 and shares of irobot are falling after Raymond James downgrades that stock from underperformed to performed and pricing thats pressuring its stock, you can see down by more than 3. 6 we have 45 minutes left to trade. Lets get to mike for todays market dashboard hi, mike hi, wilf. Heres what weve got, freightened questions. Thats what wall street is asking about fedex and rock roll band and well take a focus on that and then, dull, with style that seems to be boring stocks still in fashion on wall street. Well measure that and then a mild jolt, a look at the new job indicator we got today. Freighted questions, somebody who is trying to push the bull case and kind of threw a towel on it at bernstein you can see distribution has gone radically from very, very bullish on a consensus basis a year ago to pretty much being 50 50 a high performing stock from years. Just a little over half, half of economists recommending it and the targets, slashed thats not telling you that wall street sees a whole lot. On a contrarian basis, thats pretty good. You have to get a runout, if the stock is going to struggle, its going to bottom. And also when you look at longterm, this is a tenyear trend in fedex its now below 11. This is basically longterm downtrend. Thats when earnings were basically zero the problem is forward estimates keep coming down, too. You can see relative to the s p 500, trading roughly half the market at some point the market is going to feel like this is getting done over negativity then again, i said that before the last Earnings Report and those forward earnings got rolled down. And all of a sudden it looked like a value track, not a value ride and in the former rivals . Fedex is bearing the brunt. Fedex, just its leverage to air freight, much more of a global story as compared to domestic. Thats why fedex has struggled, of course, the breaking of the relationship with amazon mike, thanks. Whats the take on these guys, are they linked to the trade news yeah, its really tough to get excited about fedex and or it when you throw in competition from amazon doing their own logistics. These are companies i would say right now would not be on my buy list, anywhere near it mike showed us that longer term chart on fedex. Its kind of gone against the trade. Yeah, it has. But at the same point in time, theres been all of this talk about increased competition, you know, fedex so, the u. S. Economy has been strong, right but globally, weve seen weakness now for several years and fedex has high exposure to the global economy, not just the u. S. Economy right and after the break, wall street weighs in on media. Well round up new analysts calls on disney, net tix and roku and later, consumer bullets. The tests of teslas smart feature that says you can be driven around automatically. Well discuss that, next will it feel like the wheend of a journey . P working, or the beginning of something even better . When you prepare for retirement with pacific life, you can create a lifelong income. So you have the freedom to keep doing whatever is most meaningful to you. A reliable income that lets you retire, without retiring from life. Thats the power of pacific. Ask your financial professional about pacific life today. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From managing inventory. To detecting and preventing threats. To scaling up your production. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. Servicenow put our this changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. Welcome back on closing bell, today, were featuring media calls. Jpmorgan cutting its earnings outlooks on disney for platform and choppy integration of fox assets 95 cents, compared to previous estimates of 1. 05 outraising it from 1. 30 to 110. It could go from user base of 31 million to 72 million and rosenblatt slashing its price target on netflix from 320 a share to 264 on prediction on apple and disney, as well as forecasting a q4 miss. And isi had its target earlier this week. For more on netflix, lets bring in the analyst behind rosenblatts note. Bernie, thanks for joining us here the stakes are going to get higher do you think theyre going to whiff . Exactly thanks were on the treat for 4q, 10 below the street consensus is 7 . So how much have you reduced your actual revenue estimates or earnings estimates, compared to the price target is there a multiple . Exactly longterm free cash list came down 5 on higher cash content we think increased competition will drive you to spend more on content, 15 on the multiples. Right now on price target, 4. 5 times 20201 revenue how you have assessing it its going to be competition. Disney with november 12th launching of it. A huge amount of pressure. Theyve never faced this competition before subscriber ads is going to be down its a big year for 2020 its kind of big. No change in the actual price, 265. Neutral is where you want. You should have cut the price tag earlier . Rightly so, probably could have the majority of our competitors, 70 of the street is buy owe the minority of us are as the quarter that weve got ahead of us, talk to us what you expect on the subscriber numbers, and if they were to miss expectations how they are yeah. The guidance 7 million subscribers globally added and really comes down to the content. The content slates a lot better in the 3q, than 2q. You shorange is the new black and then the politician was late in the corner. And rotten tomato had a bullish outlook from there mark, what do you make of the media space, are you interested in buying netflix here i prefer disney right here. I think the valuation is more attractive theres more upside. Theyve got a huge major catalyst in front of them with the rollout of disney plus i agree can they have fantastic content, but what im wondering is is it bingable content . Is it addictive content . Yeah, when my daughters were young, they probably watched frozen 20 times, they watched it a lot but are they going to draw viewers back again. Im looking forward to the breaking bad movie coming out and thats great for netflix but when you look at it when it comes to the different companies, i dont think netflix is going to get themultiple that it has in the past due to increased competition. But its going to be a winner take all market. I think theres room for severals there does disney really need bingable content to be a winner . From a stock perspective, theres so much there . They dont. Plus, they have hulu theyre majority owners of hulu. And something that doesnt get talked about a lot when were talking about the streaming wars is, the people that are going to lose are going to be the cable providers, right consumer still wants live tv and you can get that through hulu live tv you can get that through youtube live tv. So, theres still an opportunity there outside of streaming original content quick i was going to say because of the broadband, i think what you need to be bearish on, if streaming competitions comes that drives more core. Thats Media Companies with the rating on fox. Great to see you. Thanks for joining us. Thank you very much weve got 34 minutes left of trade. Were high to the tune of 240 points on the dow. Were almost at session highs. Coming up, weve got last chance trade on the video game space. And up next the hunt for yield. Well talk to the Portfolio Manager on opportunities and Treasury Bonds ticking higher with the 10 at 1. 4 , just about where weerjstda we dyeery. Wow, what a beautiful wedding as your second cousin and number one broker. Youre welcome. Remember, carl, we havent been investing with you for a while. Hmmm . Because schwab makes planning for things like this easier. Yeah, with schwab we get automated investing and integrated planning help. For a low Monthly Subscription price. Why would schwab do that . They help you plan for the things that matter. Subscription pricing. Schwab introducing subscription pricing with oneonone guidance. Schwab intelligent portfolios premium, a modern approach to wealth management. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu filmgate is growing really staffing a small bquickly and. Is challenging. I needed to fill a production coordinator role. I was looking for someone with specific skills. So i posted a job on linkedin. Maribel had all the skills i was looking for. And looking at her profile. I saw shared connections. That was a plus. But the most important thing. Is the ability to connect to people and she had it. And i knew. She was the one. Post a job today at linkedin. Com grow just about 30 minutes exactly left to go before that closing bell sounds. Three things drivie ingdriving signs of optimism. And the fed with future policy on a debate how to align policy decisions with Market Expectations and tech leading the charge. Apple is higher on the bullish call well have more on that call ahead. Time for a cnbc update with sue herera hello, wilf heres whats happening at this hour the Turkish Military offense into syria continued into the night. Video from the border showed heavy shelling kurdishled forces in syria said the fighting has killed three soldiers and five civilians. That is not confirmed by nbc news german officials are looking at two suspects believed to be behind an attack at a synagogue. On yom kippur, the holiest days and live streamed by the gunman. And more than 2 million c n californiaens in the dark. Pacific gas and electric took the steps after a storm predicted wind gusts up to 45 Miles Per Hour in the coming days police are looking for the person who they say rammed a stolen pickup truck in an attempt to steal an atm inside courtney, back to you. Lets send it back to Rick Santelli hes ready with the second dashboard. Calling this rock roll. Look at how this has come into a title band here. With the s p 500 itself, heres the 40 price earnings multiple of the s p 500 basically, this is the pe based on expected earnings whats interesting between 16 and 17 is where it has spent the vast majority of the last five years. A line, capping it at 17, underneath is 16 this really is not a surge above that valuation band. When you consider we had not yet had the tax cuts priced into estimates so in reality, the market was essentially handicapping a rise in earnings. So, weve sort of toggled between these here and youve seen the periods where weve flattened orlando in the market to where we get to 17 times. What youll also see, okay, if were caught here, okay, we get to that 17 level or Something Like that, it will probably take Earnings Growth to accelerate that index trend above these levels thats probably what people are hopefully waiting for. I would point out with much greater bond yield some would argument 17 times is not as valued as a few years ago perhaps when yields were higher. Thats kind of a semantic argument starting there, mike, how much the valuation dropped last year in terms of the Earnings Growth, what are we expecting year over year, for next year, because, of course, the market it rise on that without a doubt 2020, i think the estimates are still showing close to 10 for that year. If you blended on it, it probably looks mid to Single Digits the trick is figuring out if the actual market is priced for that growth or if in fact the market expects those estimates to come down a little bit that to me is really the front on which were battling out between bulls and bears right now. Mike, thanks so much. Yields falling sharply over the past three months. Joining us for other opportunities for yielding concerns managerer of black hawk fund tony, thank you for being with us lets start with mikes analysis of where the s p 500 valuation is at the moment yes i think this has been a rising market but its been climbing a wall i do think that stocks are the best game in town. Look at the treasury a year ago, that was at 10 . Today, its 1. 6 were in a market right now where you can actually get more income with stocks than bonds and thats very unique which particular groups are you looking at well, in our fund, we emphasizecome opposed to that. And reits are trading at alltime multiples i think there are risks there. I think youre better off focusing on stocks that can grow that income over time. What stands out to you . What stands is insurance brokers. Companies need insurance regardless of the economy. Even in a recession, Companies Buy insurance. Its a Good Business its a capitallight business unlike the company itself which requires a heavy Balance Sheet lets talk about hmos i think the risk of medicare for all is wildly overdone if you look at the polls in depth, people like their insurance, they just want to pay less for it, but they dont want to give up their Insurance Coverage in fact, if you look at the medicare business, theres actually two pieces. When you sign up for medicare, you can get coverage from the government in the Fee Per Service or private hmo increasi increasingly, seniors are opting for that private hmo 30 are in medicare advantage, its called. Mark, where do you stand in terms of highyielding stocks, what are your core picks . We like managing general stocks in general. For preretiree and retiree clients. Not only, the dividend ahristo c ahristo cats have outperformed broadcom and theres companies out there, just as we talked about with regards to growth, growth is just as important as the dividends. Not necessarily the level of the dividend, but the fact that they can continue to increase that dividend year after year tony, of course, i get the argument, that yielding stocks looks attractive relative to where bond yields are. As to the question of whether theyre still attractive in absolute sense, do you get worried that we see them broadly sell off i do think were towards the late earnings of the cycle, but i dont think were at the end of the cycle at this time in the cycle, its really important that you like what you own and that you be prudent in the way youre inv t investing. Look at the market multiple, its not out of bounds, its right in the range what about the banks . Theyre kind of properly in the middle of crosshairs, isnt that they look cheap . Sure, i like to think of things in the stable bucket and economically safe bucket they have more capital that capital provides a cushion and downturn yet, theyre trading at extremely low multiples will 10 time, 11 times current earnings. I think thats the best value in that cyclical bucket tony, thank you for joining us here. Thank you here we have just about 23 minutes left to go before that closing bell sounds. Lets take a look where we are, with the dow at 252 points keep climbing up to the highs of the session. Up next, weve got your last chance trade plus, apple with alltime high levels with boosting the market to turn 60 a share well break down that call coming up. As we go to break, heres a check of halliburton cutting 250 jobs with the weak prices. Well be right back. And you should be mad at simple things that are unnecessarily complicated. But youre not mad, because youre trading with e trade, which isnt complicated. Their app makes trading quick and simple so you can strike when the time is right. Dont get mad, get e trade and start trading today. Is that pgim, we see alpha emerging in the trendsete . Driving specific sectors of outperformance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Every day, our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Welcome back 19 minutes left in trade 250 points on the dow. Healthy returns, 1. 2 for the s p. 1. 3 for the nasdaq all secretators on the s p highr Technology Leads the charge. Weve got about 19 minutes left to go from the closing bell mark, what is your last chance were going with the Gaming Company activision, it got its team knocked in last year. Their call of duty was pretty much a flop. Stock was trading down to 80 and came up to 40. Suddenly, the chart is better back up to 52 bucks. The reason we like them, theyre a leader in esports viewership of esports up 30 year over year and theres actually expected to be more esport viewers by 2020 in every sport except the nfl. They just rolled out call of duty mobile. And theyre roll out call of duty warfare by the end of the month. So theyve got a lot of catalysts in front of them that continue to take the stock back to where it was a year ago and theyre not getting involved in the hong kong protests yeah, they are, the stock shrugged that off. They took back the prize money, i guess. I think they banned them for a year expressed support for whats going on right i guess they need to figure out the balance between making money and making the political statement. The stock, i think, initially, pulled back after that news and then it kind of shrugged it off. So, i dont know how much of an impact thats going to have on the stock. Were just more focused on the positive catalyst that are going to drive dollars down. Weve got 17 minutes left. Heres where we stand, were up 250 points on the dow. 1. 2 on the s p 500. Up next, were taking you inside the market zone where we will bring you uninterrupted coverage of trade. Closing bell back after this you should be mad at leaf blowers. [beep] 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. We have just about 13 minutes left in this trading day in the middle of the week here and were now in the closing bell market zone this is commercialfree coverage of all of the action going into the close. Cnbcs commentator Mark Santelli is here to break it down today, weve got mark tepper here as well markets took a little bit of a late blow. We had been up to 250 points just a little slippage there are reuters reports lowering expectations. Trade talks between u. S. And china. Well have more on that when we have it any minute now lets kick things off with apple, the stock getting a boost africanaccord raised and apple facing backlash over an app which tracks activity to hong kong. Apple had reversed its decision on its apple store on saturday mike, its based on survey for the iphone its not groundbreaking hard data the price increase is quite small. I think just getting a boost because of the tech performing on the trade hoax a few minutes ago. Yeah. Its obviously got momentum. The stock is grinding up towards this old high. The iphone is still benefitting from relatively low expectations coming into this generation. And also investors with the whole cycle no longer has the drama around it. Its much more of a steady flow as opposed to wondering if its going to get a hit the stock is a little low. Mark, where are you on apple . Seems like weve been getting a lot of positive comments about the iphone 11 . Yeah, we own it one of the interesting things about apple, this quarter was the last quarter forever where iphone sales were less than 50 of their revenues. I think it was 48 you now have wearables and surfaces creeping up to 32 . So, theres definitely this transformation happening within apple. Its positive, i dont know id rush out to buy a new phone because it has a third camera. If they made this smaller, thats what id rush out for ive got to get something that fits in my pocket better its like back to the old but anyway, apple doing well slipping like the rest of the market in the last five minutes. Thats because of breaking trade headlines, Kayla Tausche has that rusters is reporting that china is lowering expectations for progress on negotiations on friday with the United States this week. That is because these Officials Say goodwill has been damaged from the Commerce Departments blacklisting of 28 Chinese Security and Technology Companies that commerce alleges is involved in the detention of muslim minorities in kleiy s iia we had heard various and sometimes conflicting reports about the impact of that blacklisting on these talks. There are reports that the vice premier of china is willing to do a partial deal with u. S. Even if he was miffed by the timing of this policy deal by the Commerce Department but now reuters reporting according to chinese officials briefed on talks that beijing has lowered expectation for progress wilf and courtney. Kayla, this sounds slightly ridiculous in terms of the conflicting information thats come out remind us when we may have the actual meetings and might have something solid from them. Depends on how well or poorly they go. Set for tomorrow morning, as for now, the expectation is that talks will go through thursday into friday. In 13 rounds of talks, weve seen it all. Weve seen the talks break early when the two sides get frustrated and they feel like theres nothing to be talked about. Weve seen the talks get called off before they even begin and in some cases we have seen the talks result in the oval office when President Trump wants pressability, he wants a photo op with himself and the vice premier, we just dont which one this is yet. Kayla, thanks very much initial drop down to 190 points. Seems to have found a flop yeah, everyone right now, its an excuse to take the foot off the gas sand defend the brake. Its alley about tactical trading because you think somebody else might trade on the same news but within a range so nothing is breaking us out of the range. Were trading points back and forth, yesterday, at 3 00 p. M. Eastern time, before we got that rush out were at 29. 22 on the s p. 2921 right now we dropped and came back turning now to pharma, Johnson Johnson is getting hit after being ordered to pay 88 billion. Johnson johnson is no stranger to headlines, theyve been focusing on the talc powder and opioid business. This came as a surprise. A philadelphia jury awarded a plaintiff 8 billion in the fact that they downplayed the risk that risperdal it is a reminder for investors in legal events and j j has a number coming up another trial set to begin in philly in december and ongoing trial in new jersey concerning talc powder and Ovarian Cancer and more than 2,000 lawsuits, guys, back on the table. Back to you. I was going to say, this is far from the last time well hear from a Pharmaceutical Company embroiled in a court battle what does this mean with 8 billion embroiled in Court Battles . Yeah, such award is evidence of the distrust in the pharmaceutical industry. 8 billion is out of step with what happened here and huge for the compensatory damages they called this an existential crisis moment for the drug industry, considering its such a huge punching bag. Meg, thanks so much shares of fedex dropping to lows not seen since march 2016 Arthur Bernstein downgraded it frank. Rallying. 75 from bernstei. And the bull has been shredded and the seg that vernon said will swamp the market. A potential deal with china could benefit fedex. Its had issues over the mishandling of huawei packages u. S. Shipping 2 of revenues but the company has a key regional hub there. Thank you very much, frank. Weve got a little over five minutes to go before the closing bell sounds. Leav levi sales lower many analysts agree, levi is taking the right step for longer term branding but they still see pressure in the near term. And for the traffic and Legacy Department stores and chain stores, shares of levi down by 7 meanwhile, conglomerate lvmm sees a strong growth hong kong makes up between 5 and 10 of total sales around 6 for lvmh specifically. Those shares up by 1. 7 . That company just seems to keep grinding higher and higher, mike i was going to say thats coming off a really good run it is its really bucking the trend. I think theres others in the luxury segment thats been softer i dont know if its the portfolio brands or the exclusion. Mark, do you think we can make better draws from the lvmh results . Wow, i dont think so i think what were looking at consumer buying preferences have shifted. I think were looking at a consumer who is much more price conscious said than he or she was a few years ago. Look, that performance has been phenomenal but were seeing Great Results from people like t. J. Maxx, right, the offprice retailers where all of those levi jeans that werent sold by kohls or macys, thats where they end up mike, all of the sectors are still high at the moment yeah, i think were really just kind of recouping what was lost yesterday in that late air pocket we did consider this blizzard of headlines about the visa restrictions u. S. china seemed like they were taking a hostile posture i think were kind of brought back into a neutral stance as to how the talks might pan out. As for the internals underneath, youre having a look at that . Yeah, net positive. Volume is a little light if you look at new highs, new lows, not take lerparticularly pronounced a loof new lows when the stock market is up 1 of the s p look at the vix index, the volatility index it did pick up around 2 00 p. M. When we did get the fed minutes. Not sure why theres spenuspens around the fed minutes we have the trade talks ongoing. Like yesterday, were pulling back from the highs right as we move into the closing bell we do have two minutes to go lets send it over to Rick Santelli, hes got a check on the bond market. Hi, rick hi, if you look at twoyear note yields youll see obviously up but it is giving a little back on the recent headlines regarding the chinese delegation and the length of negotiation, if you look at one week of 10s, we will close one week high in 10s. Were giving it up on twoyears. Everything is down a basis point since that said lions. Vix, we like to watch the vix. A tenyear vix, lowest levels in one month. Bertha, we seem to be leading with the nasdaq over 1 today. We do, a lot of that is techdriven, and particularly chipdriven. Weve got the good news on apple in terms of the an lialysts taradon, one of the standout, on a 52week high its about flat for the week the sector overall down 1 roku is another standout the stock seeing its best daily gain in two years and an upgrade in macquaire in streaming wars and certainly helps to have a platform meantime, American Airlines, with earnings look to be better than expected, notwithstanding the issues with the 737 max which it hopes to bring back into circulation in early january. Nonetheless, the stock has a loser for much of the year over to bob. And, bertha, we were at the highs for the day just 15 minutes ago. Were off of those highs on that reuters headline beijing lowering expectation for u. S. china its not clear, with the s p 500, came off the high remember, earlier in the day, there was talk theyre going to offer an agricultural deal in change for tariffs not sure if thats the expectation. Youve seen a move to the downside but weve stabilized, predictively, all of the names moved down a little. Cart caterpillar moved down and theyre very predictable moves on any kind of trade talks. Not bad, considering that headline Dow Jones Industrial average closed for the day up 166 points, s p 500 up 25 points it was peggeds around that 1 move with a little bit of flutter right around there welcome to the closing bell, everyone. Im wilfred frost. And im Courtney Reagan in for sara eisen, along with Mike Santelli and we are in the market zone, you can see the action on the right side of your screen with the totals coming up on the bottom of your screen. As bob said, not bad at all given the worst headline at the end of the day the net news is more positive. Finishing 0. 9 on the s p. A little more for nasdaq led by tech, 1. 45. Joining us now to talk about the market day, we have mark tepper from strategic world partners still with us also joining us from Merrill Lynch bank mike, ive got to say it worked, didnt it . It worked the rule is you have to buy tomorrow morning, if youre observing yom kippur, you cannot observe the close today. Yes, down 3 so, that has worked. And i do think it tells you the anxiety back and forth within this trading range yesterday, s p down 45 points. Most of it in the last hour. Today, we got 26 of it back. Where do we end up exactly where we closed six days ago. So, its not saying nothing is going on whats going on, the markets kind of hanging in there and waiting and staying supported by low yields and a 2 economy hoping theres some catalyst needs from trade or swing in the macro that gets it moving one way or the other chris, what vhave you focused on investors have really hit the pause button across all levels across the board the pause button has been clearly hit. The key is the markets been hanging in there with this movement it tried for a fourth wave of rotation from ultra defensive to cyclicals and it didnt really get that big pushoff in the wave. Then things relaxed itself but the four main areas we continue to watch. Its just like electricity in the household. Youve got to look at the meter. The meter is this, Monetary Policy check the box, it got more assertive. The market tried to applaud it but if we talk about Balance Sheet expansion literally a few weeks ago or months ago, the market has taken that and ran with it. Its kind of hanging in there. E, earnings, e, election risk and the last one recessionary concerns all of those things within the meter is what most of the clients are paying attention to mark, isnt that possible, we keep talking about some kind of trade resolution, whether we get a deal dor don, or dont get a. But were in this grail area if you think about it, do the chinese have an incentive. I believe that they dont have a huge incentive to get a deal done right now if there is no deal, i think we say rangebound. We continue to balance between 28, 25, and 3025 we do need some sort of a deal in order for us to break through. One thing to keep in mind, october is when seasonality is on our side again. If you go back to 1950, roughly 40 of returns on the s p 500 happened in the Fourth Quarter, it is something to look forward to although it wasnt last year. Lets stick with us, lets find out the latest on trade our Kayla Tausche has more reuters, chinese officials have rocked the market and moved this story forward as were awaiting any glimmers of what the u. S. Side is discussing behind closed doors. All of the leaks that have happened in the last day have come from the chinese side, a sort of telegraphing exactly how they feel and how they feel going into highlevel negotiations for the next two days now reuters is reporting that beijing is lowering its expectations for negotiations this week to broker any sort of agreement, truce, deal and that is because these chinese officials feel that goodwill was damaged by the u. S. Department of commerces blacklisting of 28 chinese and Surveillance Companies and Technology Companies that it says surveilled Chinas Muslim minority populations many of whom are now detained in northwest china. Where is this reporting that this ruined the goodwill between the two sides here and as such, theyre dialing back their expectations but we learned this morning in another report, the chinese vice premier is still committed to pushing a partial deal even though hes frustrated by the timing of these tech sanctions i was just texting with a person close to these talks say the tech talks are a real issue. Its unclear the extent to which that issue will play out in the talks and how much of a potential deal breaker it really is for the chinese side. Kayla, thank you very much for that chris, whats your latest take on whether or not this is a major decision a major factor in your decisionmaker for Sector Allocation i think you have to look at two things from an economic perspective, its pretty clear that the damage is more harmful to outside economies, particularly the china economy. And im argue the german economy. However, the Economic Impact in terms of confidence for the u. S. Its slowly starting to gather momentum to the downside we hear a lot about negotiations we hear a lot about other things but the most important part we cannot have happen is the poor weak activity in the industrial sector slip into the Consumer Sector from our perspective, trade, and you look at the companies that have done well when theres been good trade announcements, we seed to see that relax to the upside a little bit to make sure the slide in confidence doesnt continue and allow sentiment to improve. Mark, that is a good point we talked about the divergence in the economy between business and consumer how long can the consumer continue to hold this up the consumer is 70 of the economy. So, we can make it for quite some time. But we have seen, even consumer data has started to peel back a little bit Consumer Confidence has come back a little bit. Its still high overall, Consumer Sentiment i dont know how much longer the consumer can drive us. I really feel for this economic expansion to continue, we need to start getting some cap and stuff like that. Its been leading us for almost 11 years its going to be a crazy Holiday Season it always seems like it is, but this year, lets get back to bob on the Winners Circle high, we are up the market is light. Of course, we had a holiday, keep an eye on that. In terms of highs, some Retail Stocks continue to do well another new high for target. Small group of retailers doing great, ross stores, walmart, tjx. Theyre the exception. And its a great time to be an apartme owner. All of the apartment reits are doing well avalon bay is another one. Thats a new high many essex, midamerica apartments, all 52week highs. Finally, were essentially going nowhere this year. We pointed this out earlier, my friend paula spoke as interesting facts were at 2 above and below the levels on the s p, one month ago, three months ago and three months ago. Thats that red line, essentially, were back to where we were. Back to you. The other interesting thing how yields subtract. If youre not seeing yields rise, youre probably not going to see equity. Yeah, thats been the pattern. Even note rise has been modest theyre sticking below their lows i think you can look at that tenyear, say okay, refused to go back to last weeks lows so we can call that a little bit of a buffer between where we are right now and that zone where were really in a recession panic. I think thats at least a cushion. Thank you, mark tepper for being here, and chris hyzy, thank you as well. Boeing is delaying the return of its 737 max planes until january. Well break that down and what it means for consumers when closing bell comes back. 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. We believe in education built for all people. , [woman] snhu was the best experience of my life. [man] without snhu, i wouldnt be the leader i am today. [woman] i graduated high school 19 years ago. I still finished. [man] in the military, you feel that sense of accomplishment. Thats what snhu is. You will march from this arena and say to the world. I did it. [woman] you did it. I love you. [graduate] i love you too. Welcome back American Airlines, one of the best performers on news of low fuel costs helped margins in the Third Quarter. But the stock has been underperforming its peers lately and pressure is mounting on the ceo doug parker. Joining us to discuss is leslie josephs. Leslie, good to see you. Lets talk more headlines on the delays on the boeing 737 max the latest updates, were they much less than expected or broadly in line . Well, we dont have the a sense when this is going to be back in the air. Boeing says sometime in the Fourth Quarter we dont have any signedoff from the faa or global regulate letters. What american will do like united is delay it and delay it again. And now were getting into january where american expects max to be back in service. What are the specifics . Well, its a small part of its fleet. 24 of them were maxes at the time of the grounding. They have 76 more on order this is a very fuel efficient plane. So american cant grow as it wants to because the planes are on the ground. It needs to reassign planes, cancel about 140 flights a day thats nod got good news for thm industrywide, is the grounding serving capacity, in other words, is it filtering into pricing or having any effects on the airlines . It depends which airline it is delta doesnt have the max in its fleet and its been able to pick up some of those passengers so thats a good thing for delta. The thing is when the max comes back, its a great thing for boeing, thats going to add a lot of capacity back into the market and its coming at a low point for travel travel hit a peak in the summer. Youre going to have a lot of pricing pressure when the max comes back thank you, leslie, for joining us and continuing to follow the story for more on the airlines, lets bring in the managing director and Airlines Analyst at Raymond James. Thank you for joining us you heard leslie giving the update saying its not perhaps as big of a deal for american and delta. What about the rest of the airlines that youve covered as the plane continues to be delayed into its reintroduction . Actually, i think it has been a notable impact for american. Obviously, the biggest impact has been on southwest which has the largest max fleet. If you look at the u. S. As a whole, max was supposed to be about a point and a half in the summer by the winter, at 4 capacity so you are getting impacted. And clearly, the ones that have seen a negative impact have been southwest, american and united who are supposed to have those aircrafts. And the beneficiaries have been delta and jetblue able to pick up some of that capacity and the industry, in general, saw a benefit from higher prices especially during the summer when are you expecting the max to be back in service, in terms of your model for American Airlines and has the impact that its been out of service declined as each month has passed . Actually, its probably from an impact on the airlines that are going to fly, the impact is bigger, its more of a lost opportunity than a bigger lost opportunity than anything else and from a capacity and a fare alignment for the domestic industry, i would think its a bigger impact on pricing for consumers because those are capacity that choice would have been there, more trips for passengers so the longer this goes, the bigger the impact. But its a little hard to segregate. So, its something that you know, i think the sooner it comes back, the better it is, again, for the operators and were right now modeling around midjanuary for the aircraft to come back. But, clearly, the longer it takes to recertify the aircraft, you know, the risk is higher and it takes airlines about two months to bring that aircraft back after its recertified. So, you know, we need to get the recertification by midnovember, late november, for the aircraft to come back in january. And youve got to convince passengers like me to get on one of those 737 Max Airplanes im not real excited about that, i have to admit, even with the recertification. More broadly, American Airlines shares up 3 today more broadly, theyve been suffering down 16 for the quarter. Whats your expectation for the airline in the near to medium term yeah, you know, theyve been hurt by a few events like the max. Theyve had issues with the mechanics. Ive heard custom thats hurt customer perception. Hopefully, those things can reverse themselves and improve things on the revenue front, its showing good performance its really, you know, the investors concern is really on the Balance Sheet side, i think more than anything else. Because there is concern that were heading into a downturn. And american has amongst the highest leverage in the group so that is causing investor concern. As long agens we dont go into a recession theres going to be nice pick up in the near time, thats weighing on Investor Sentiment what are you looking for delta . Delta has given a preview of what their Third Quarter looks like really, their focus is on a goforward basis they have indicated to investors that the Fourth Quarter unit costs are going to be high for a myriad of reasons. And most of it is not continuing on i think the biggest focus for investors will be what theyre seeing on the revenue environment. So far, airlines are seeing really Strong Demand all of the headlines, you had about trade, macro, and the industrial sector, the weakness, really hasnt come through from a demand perspective i think all eyes will be on commentary on how corporate demand is holding and leisure demand is holding. Savanthe, thank you for joining us dont miss tomorrows cnbc interview with ed bastian, thats 7 00 a. M. Eastern on squawk box. Switching focus, President Trump is speaking at the white house just moments ago our eamon jaffers asked him a question about trade mr. President , the report this afternoon, the chinese are lowering their expectations for a trade deal are you also lowering your expectations for a trade deal . No, i dont think so, i think theyre doing a good job you know better than anybody, i think you doll a good job over there, i watch a lot we are so far down in terms of where we started for president s that didnt do their job for many years since the World Trade Organization founding, china went in, 2001 or so, china went in and it just rimmed off the world. And i told that to president xi. I said like this cant be like a 50 50 deal because a 50 50 deal, youre like up there, were down here so a 50 50 deal doesnt work, right . You got to have a little balance. This has to be a better deal from our standpoint. And i think they fully understand it. One of the really good meetings i had today was with our people on opioids and drugs and fencenn fentanyl, and fentanyl with respect to what youre speaking of, we have great drug numbers what is great drug numbers if youre down 15, 16, 25 , its still horrible whats going on in this country and the world, the whole world. But, no, i think they have a lot of respect for us. First time, theyve ever respected us i think china has a lot of respect for me and for our country and for what were doing. I think they cant believe what theyve gotten away with so many years. Do you think its wrong to be putting pressure on the nba, sir . Well, the nba is a different thing. I watched this guy steve kerr, he was like a little boy he couldnt answer the question. He was shaking oh, i dont know, i dont know he didnt know how to answer the question, hell talk about the United States the president there answering a question from our eamon javers on the topic of trade. Nothing groundbreaking but i guess a slight offset to the headline that did take 50 points off the dow. Another sign that we need to wait until the end of the week until the meeting is over and get the readout. Just a reiteration of the president s broad stance one question that hangs out there, in this idea well, it cant be a 50 50 deal, the escalations that weve seen, whether on the National Security lines or anything like that, are they now things that can be dialed back. And even the currency manipulate status we dont know any of that. But thats just, i think, in the mix, in terms of handicapping how this might be pursued. We have some news on target. Eric has those details thats right, courtney. A new cfo at target the executive Vice President and Financial Officer will oversee targets financial and Retail Services which includes guest relations of its Financial Products including targets red card for more than 15 years, hes served in a varieties of roles in hr and operations courtney, i know youll have a lot to talk about this yeah, we previously knew that targets cfo kathy smith was transitioning out of that role weve been watching shares of target in the last several days getting a strong buy initiation from Raymond James this move wasnt entirely a surprise well, coming up next, the pulse check tonhe risk markets. Mike santelli, hes still here hes going to heads over to the telestrator for that welcome back to closing bell. Lets send it over to Mike Santelli hes got his third dashboard what do you got . Were calling this dull, with style. Its a writers definition of art. What we have on wall street, dullness has been very much in fashion. If you define it as low volatility stocks and stableness the white line is the low ball stocks, defensive stocks hardly any giveback, even though you had the rotation into cyclical stocks. These are high beta stocks, the ones most aggressive and the ones that move most dramatically a lot of cyclical stocks, highly leveraged companies, things like that so, right now, theres not been much in the change of the character of the market. It is the defensive trade that works late in the cycle that remains intact right now maybe well get a change with a trade deal or some confidence with the expansion thats healthy. But right now, i dont think the market is telling us its in the offing thanks, mike. Tensions flaring and new bearish and corporate for hong kong. Plus, turkey launching new offensive in syria the latest on that story when closing bell comes right back. And getting her car towed. All i had to take care of was making sure that my daughter was ok. If i met another veteran, and they were with another insurance company, i would tell them, you need to join usaa because they have better rates, and better service. Were the gomez family. Were the rivera family. Were the kirby family, and we are usaa members for life. Get your Auto Insurance quote today. We believe in education built for all people. , [woman] snhu was the best experience of my life. [man] without snhu, i wouldnt be the leader i am today. [woman] i graduated high school 19 years ago. I still finished. [man] in the military, you feel that sense of accomplishment. Thats what snhu is. You will march from this arena and say to the world. I did it. [woman] you did it. I love you. [graduate] i love you too. When i lost my sight, my biggest fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. Welcome back to closing bell. Costco just putting out numbers for its september sales, but putting up really strong numbers, United States up 5 when you circle out the price of gasoline and Foreign Exchange in the United States, 5. 7 . And ecommerce up 18. 5 there. Its been working on rebuilding that ecommerce division, as its been late to the game offering its items for sale in a way thats attractive to consumers. Time for a news update with sue herera heres whats happening at this hour. Protesters camped out on the streets of london for the Third Straight day in the hopes of raising awareness about Climate Change while most are peaceful demonstrations, police have made 500 arrests. Bmw is recalling more than 250,000 vehicles in the u. S. Over concerns of the backup settings drivers are able to turn over that feature which could violate federal Safety Standards the recall begins next month glaxosmithkline is taking a precautionary step from removing zantac from all markets worldwide. The move comes just days after the fda found unacceptable levels of cancercausing impurities in the drug on a lighter note, take a look at that big guy a restaurant in pennsylvania is getting into the halloween spirit in something strange. In an homage to ghostbusters, the owners of angelos has installed a huge stay puft marshmallow on the roof. And a few monster tentacles, too. Le l we do have a developing story overseas courtney, there is now a report that Turkish Ground forces have crossed into northern syria, of course that conflict is creating a politically fraught moment for President Trump and democrats at home this afternoon, trump said hes not worried about escalation are you concerned about escalation and are you concerned that erdogan will try to wipe out the kurds . I will wipe out his economy if that happens. Ive already done it once. Im sure that he will i hope that he will act rationally. The question is how far will turkey go, what consequences will trump be willing to impose. Guys, the turkish president is scheduled to meet with the president at the white house next month a lot could change iev virgin a lot criticized tweeted about it, is that the criticism today as president erdogan has begun his attacks . Were hearing from even senator Lindsey Graham who is saying this was a poor decision. And were also hearing democrats on the president ial side saying this is something that endangers the kurds in the fight against isis so were hearing bipartisan agreement that perhaps President Trump should rethink that. Weve got a news alert on bet, bath beyond bed, bath beyond, president and ceo affected november 4th, you can see the stock up about 17 right now on that news, tritten most recently served on target, and also worked at nordstrom and nike but hes coming to Bed Bath Beyond the market is up 17 the market likes that pick thank you. Back to you the dots are connected finally, weve had this interim ceo at Bed Bath Beyond since may. Theyve been doing executive reshuffling. Theyve got a new board. And theyre making changes and the move going higher, 19 naming mark triton that was part of the market announcement that he was resigning, sort of a double announcement for target now we know where mr. Trittton is going obviously, hes had a nice run interesting move with the timing ahead of christmas but we know that gets set well ahead for retail even as a gesture and what it reflects, it seems like theyre going to try to raise the metabolism in terms of merchandising. By the way, 50 of Bed Bath Beyond shares sold short this has been a move weve been waiting for and now we have it back to the broader market, stocks closed high, with the blacklisting of 28 Chinese Companies this week was difficult for goodwill lets bring in the director of Asia Practice at the eurasia group. Michael, good to see you lets talk about expectations going into this round of trade talks. Its been up and down, the expectations, tell us where you stand on that. Well, i dont think were going to see any breakthroughs, certainly from this round of talks. I dont even think were going to see a formal agreement on the deal when the talks end but it does seem like were in the shortterm positive in the sense that beijing has reacted to really an inflammatory move that the United States took, with sanctions over Technology Companies and chinas provincial government in the province over the population there so, its been quite a strong move in the works that have been debated within the u. S and the timing is really notable, right they make this heaard hitting me on the eve the trade talks china did not cancel the trip. Talks thus far anecdotally seem to be productive i think shortterm positive in the sense of avoiding escalation for the time being but i think theres reason on how it will come out of the talks. It might have been restrained on the remarks but talk about whats going on in hong kong and chinas response to some of these United Statesbased Companies Operating over there i mean, thats a real risk for businesses absolutely, and thats one of the pressures on this relationship that makes it smart and skeptical and cautious about what the median term looks like beyond the next few days so, thats right, Chinese Companies are taking their cue from chinese leadership in standing up to what they view as politically correct statements with interference with chinas affairs with respect to hong kong it looks like its infringing on freedom of speech. So i think this is a move on the one hand demonstrates chinas market power but on the other hand, i think, is going to galvanize a backlash, or maybe a more constructive conversation in the u. S. Business community about how to deal with this. This is the new normal this is not going away companies are going to continue to be caught on chinas demands on this kind of issue. And the backlash they face at home for being seen as bending over backwards for beijing to what extent do u. S. Companies taking a real interest in the hong kong protest yet already have sales in klein china, kind of being over the top given that freedom of speech doesnt exist in china is there an odd kind of disconnecdi disconnect to one issueand not the other . I think there is a disconnect and i think its closing with respect to businesses in terms of whats at stake at here we have seen too much of this as far as u. S. Businesses are concerned. Whether its trade with hong kong, u. S. Hasnt been at risk the nba is a huge target but the nba is large enough to be able to push back and with adam silver, the commissioner, revising the nba statement and pushing back on chinas pushback, saying look, this was one employee, and we stand for freedom of speech. I think they ended up in a pretty good place, the nba did but it took a long time to get there. This kind of statement where you anger china but you as anger your domestic audience is something that i think businesses have to be better in term of their response time. Something that all of these businesses have to learn how to handle as they go forward, just as they have in the past thank you, michael hirson. Carmakers slamming the automation feature well hear from that coming up next on closing bell. Wow, what a beautiful wedding as your second cousin and number one broker. Youre welcome. Remember, carl, we havent been investing with you for a while. Hmmm . Because schwab makes planning for things like this easier. Yeah, with schwab we get automated investing and integrated planning help. For a low Monthly Subscription price. Why would schwab do that . They help you plan for the things that matter. Subscription pricing. Schwab introducing subscription pricing with oneonone guidance. Schwab intelligent portfolios premium, a modern approach to wealth management. Oh, wow. You two are going to have such a great trip. Thanks to you, we will. This is why voya helps reach todays goals. All while helping you to and through retirement. Can you help with these . Were more of the plan, invest and protect kind of help. Voya. Helping you to and through retirement. Owning and running the biggesta Small Business is finding the right people. In hiring our first recruiter, we decided to post a job on linkedin. They had to have worked. At a recruiter firm and be bilingual. When we saw ana marias profile. She had a ton of experience in hr. The interview went really well. And she seemed like someone who could really sell mckenzie to perspective employees. We found the best person to find the best person for us. Post a job today at linkedin. Com grow teslas smart summon is the companys latest selfdriving even if drawing headlines. Tesla tested smart summon and said it was glitzy, that it even drove erratically, like a drunken or distracted driver weve reached out but have not heard back jake, you did the test, what exactly did you mean by drunken driver here . Well, i suppose its pretty disappointing what you actually look at the Marketing Company of what this feature is to do its part of a 6,000 option of full selfdriving. This feature, they bill it youre at the supermarket, its raining. You hit the button and the car arrives to pick you up it doesnt quite work that way and really, when you get down to like the fine print, its very clear what the limitations are it doesnt notice the direction of traffic it cant necessarily detect curbs. You know, we found it tends to drive in the middle of the road, down to the side of the road sometimes, it will stop in the middle of traffic, blocking other traffic. You dont have the convenience, actually sprinting out to the parking lot to avoid a traffic jam. So, jake, clearly, you were disappointed by it but was that in part relative to expectations i mean, how does it compare to what else is out there in the marketplace, in this sort of area at the moment well, thats really a great question i mean, i think its disappointing that it does not perform how its built i mean, if someone actually just spent 6,000 to supposedly get this feature, what they get doesnt really match how its billed it really is the first vehicle thats operating remotely like that so, it is very interesting look, im an engineer, someone who is into technology, its certainly interesting that it can do it. But as a useful feature, not so much do you think this is something that can be fixed . Well, fixed is something that really is a work in process. I think in reality, what youre doing youre kind of operating kind of a science experiment after you purchase it, you realize its beta, its developing over time i mean, clearly the use will improve over time. But it is just really important to know, when youre spending 6,000, youre part of the testing of this, youre not really receiving the benefit of it and, jake, just to confirm, you still have to be sat there behind the wheel, its kind of an amped up Cruise Control no, let me be perfectly clear. You can be outside of the vehicle. You actually operate it with an app on your cell phone no one is behind the wheel at all. Certainly as a gimmick, its very impressive to see it operate with no one behind the wheel. Operating and acceleration and brake, turning the steering wheel, while youre away from the vehicle. Very different from anything else weve seen. However, you still need to watch the vehicle. This is not an Autonomous Vehicle by any figment of the imagination. You need to watch this vehicle and you kind of have to keep it out of harms way. You need to pay close attention and make sure its not doing anything it shouldnt. It does a good job of detecting pedestrians. Weve seen even in social media, a lot of situations where its causing fender benders and accidents in parking lots. Youre paying 6,000 to beta test something thats glitchy. Jake, thank you. Up next, a major wildfire up next, a major wildfire prevention plan. Pg and e coming up but youre not mad, because youre trading with e trade, which isnt complicated. Their app makes trading quick and simple so you can strike when the time is right. Dont get mad, get e trade and start trading today. Woi felt completely helpless. Hed online. 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. Theres really only two people that matter on this one, and thats president xi and myself we get along very well i cant imagine he likes me the way he did when i first became president. That was President Trump moments ago, talking about the trade negotiations with china will be happening here coming up the president said the u. S. Has had to drive a hard bargain on trade. They say, look, its got to be a deal that really benefits us more than that 50 50 is not what the president is looking for lets send it over to Mike Santelli for the final dashboard of the day what do you got, mike . I have a mold jolt. That would be the jobs earnings, that the labor of bureaus and statistics puts out this morning. The labor market, still 7 million jobs open in the country. That still exceeds the number of unemployed people. So, thats clearly a pretty strong state of affairs. However, you dont have to squint too hard to see this number, having rolled overpronod normally, youd see fewer job openings but it kind of rolling over i will say people are concerned because thats the way it looked before the last recession. And, obviously, this survey began right there, i think in the year 2000. That was another peak. However, the good news, and we keep pointing to this, right, the 2016 slowdown, near recession, whatever we want to call it, we did see yearover year declines the way we are seeing right now, at least a pullback so we have to watch this to see the drop market which is a strong core of all of the macro data gives way thank you, up ne, xtbig tech well break that down when closing bell returns the oecd taking aim at tech jobs dee is here with more on the story. There have been ongoing efforts for the socalled tijt teches which the u. S. So far has resisted answering whether it discriminates against companies. It would still force the likes of google, amazon, facebook, to pay more tax in countries where customers actually use their products and services versus the stats quo now where headquarters or patents are allowed this would go beyond Tech Companies to affect other highly profitable brands like those in luxury goods or automobile the tax proposal coming from the oecd would carve out now winners and losers European Companies would be better to earn from sales on their companies. Likely hurt to be ireland and switzerland. Back to you. Dee, i guess the most Significant Development of this is its a united group of countries that are proposing this, the oecd, rather than france or the uk individually introducing some new tax which looks like its specifically focused on u. S. Tech companies and then becomes a bit of a quid pro quo type trade war where if this comes together and is accepted by all thenations as one, its pretty hard for anyone to push back on it. Absolutely, the french digital tax was problematic because some in the u. S. Felt it discriminated against Tech Companies. It draws on some u. S. Suggestions. It doesnt just go after tech. They would be highly affected. It goes after Luxury Brands and cars as well so this is more likely to get support, but were still a ways away from this being passed and having any kind of cohesive Global Digital tax. Dee, thank you very much. Up nt,ex pg e cutting power to hundreds of thousands in california the latest when closing bell comes back im off to college. Im worried about my parents retirement. Dont worry. Voya helps them to and through retirement. Dealing with todays expenses. While helping plan, invest and protect for the future. So theyll be okay . I think theyll be fine. Voya. Helping you to and through retirement. Pg e cutting power to hundreds of thousands of customers in california in an effort to prevent wildfires. We spoke to some californiaens about the outage heres what they said. I think its kind of a situation where youre damned if you do, youre damned if you dont. At least theyre doing something. Im not sure what i would do in their shoes im sure they have lots of different factors to think about, obviously as a consumer its not a great situation to be in but its hard to know what i would have done. The reason that ive heard for the shutdown is that theyre trying to protect, i guess, like potential impacts from oh occurring and that seems cool, but its weird to me that they can predict that now when they couldnt predict that a year ago. Nbcs ali wolf has more on the story in Santa Rosa California for us. Yes, we are seeing the effects of more than 500,000 pg e customers without power here in santa rosa alone, we have already seen the effects. We see gas stations on each corner of the intersection where im standing they are closed. The Traffic Signals are black right now. Its causing a lot of confusion for drivers here they are trying to treat it as a stop sign, but some drivers are getting confused we have already witnessed two car crashes right here on this corner also, a big effect on businesses lots of these businesses have signs on their doors that they are closed today we spoke to one business as they were loading up meat and vegetables that one business alone says theyre trying to save 5,000 worth of food, so you can only imagine the effect on businesses all throughout the bay area and Northern California with the power preemptively shut down to try and prevent wildfires. Thank you just as youre speaking, i think were all sort of cringing at the traffic behind you hopefully the drivers can figure that out and everyone can stay safe in this outage. Lets get another check on bed, bath and beyond shares they have a new ceo, the targets chief merchandising officer until we got the news that hell be moving companies you can see shares up to 20 and i was able to get in touch with a source that says we dont only like this pick, we love this pick everything that mark did at target is exactly what bed, bath beyond needs this company has been under a restructuring and shares are very high, but you also point out that Short Interest is also very high. Because the market has essentially said this is quasi permanent decline. Its one of the cheapest stokts in the s p 500 i think one of the differences between this and some of the other challenged mall retailers is it was once kind of a category killer. It seems like theres a lot there in terms of this category to try and maneuver, maybe more so than, say, an apparel line or Something Like that. Absolutely. Back to the border markets, healthy gains despite the little selloff at the close and all sectors meaningfully higher. It was yesterday all down i think its just kind of relieving the pressure is market is swinging on this very small pendulum right now. It assumes its going to be trade but we gkpas per rated. Were out of time that does it for closing bell. Fast money begins right now. Were looking at new york citys time square im melissa lee. T tonight on fast shares, bed, bath beyond surging. Will this be the big turnaround for the company . Plus our call of the day, one top analyst says fedex is dead money but the stock reaction may be telling a very different story. And later former nasdaq ceo is with us and well get his take on the recent pain in the ipo market we begin with breaking news on the trade front. Beijing lowering