Who else but the nba star lebron james has now come out speaking about the recent nba fall out with china, reigniting that controversy that had gone down to a simmer welcome to power lunch. Ive got quite rally reports in eu and uk may be closer to a deal on brexit that s p 500 level thats up, we are less than a percent away from all time record highs and tech nearing a record high they are their best bet into earnings lets go to bob at the new york stock exchange. Its more than just optimism on trade here. Theres several fronts going on. I think the most important is earning. Jp morgan reported strong earnings the consumer side was really good this is a real sign the consumer is holding up and even jamie dimond said that second thing help in the markets, positive comments on the prospect of a brexit deal. They did sicite hard brexit as risk finally a bit of warm and fuzzy feeling from china on the trade talk the global times editor said that fridays meeting did represent a breakthrough and both sides have a strong will to achieve a deal a lot of stocks within a percent or so of new highs including nike, microsoft, Jpmorgan Chase is there at 120. Tyler, back to you thanks very much. As the major averages close in, will earnings be enough to take the markets to those highs gentlemen, welcome to both of you. You both share the view that earnings are not going to be the nectar to the market that maybe some would like it to be burns why dont you explain first why you feel that way. If theres probably going to be one driverer, real, really the will come from the macro fronts. We had good news coming out of the brexit negotiations and we had a temporary ceasefire with the u. S. China trade what it seems those have done is steepened the yield curve a bit. Its positive for the financials its positive for cyclicals and value equities as well that might be a bit more of a driver for the remainder of this year for earnings. If it isnt going to be earnings that take the market higher, i guess the question could go one of two ways what will it be on the one hand or conversely, is the market kind of whistling past the graveyard here and pricing in too much good news for its own good i look at the china thing and i think that would be the single biggest positive catalyst to move the market higher china hasnt really confirmed the phase one progress that the administration seem to trumpet thats a sign as theres some wage on trade. I think there is theres still more risk to the down side, honestly, than i think there is to the up side. Trade would be the single biggest positive i feel like with the s p at 3,000, theres fair amount of om pl complacency out there. Theres a slowing out there generally. They both talked about no real tin signs of trouble but a slowing of growth. Thanks to United Health. You Like Health Care but health care has been trapped in this vortex of political concerns that really brought the group down today with earnings it seems to be breaking free of that is that going to last . I think that could be a little bit of a driver on a sector by sector basis health care is a great place to start with that, as you noted. When you have earning season thats the one period where you have a lot of Company Specific in stock and sector specific news and you have a little bit of a divergence between the winners and losers it seems to be a good period for stock and health care is one of the places where you have the best Earnings Growth and the best Dividend Growth its the sector thats lagged the most which means its trading at a discount. Its place for investors to have a longer term because one of the things thats dragged it down is it has had a target for both sides of the political aisle and that will continue to be the case through the 2020 election patrick, do you have a value sector that you like more than any other and if so, why burns and i both do value its been a long 12 years in the value wilderness for anybody trying to Value Companies on thi their fundamentals im sure were waiting to get out of this desert i really like energy its a stock that no one else ive talked to like. They hate it theres the old joke about you really dont think a stock is hated so you hate it yourself. Energy is just out there as long as oil doesnt go down, some of these Major Oil Producers are very cheap some of the cheapest stock in the world. I dont know who is left to sell them everybody i talk to hates them thank you very much we appreciate it 12 Democratic Candidates for president debating tonight in ohio in addition to taking shots at each other, big business and the wealthy are expected to be popular targets. Were joined with a look at what to expect. Reporter among the dozen candidates that will be on stage tonight, senator Elizabeth Warren is the one to watch in the last month her momentum has consistently out paced that of the long time frontrunner, Vice President joe biden whose family has come under fire for overseas business dealings in just the last week senator warrens National Polling average surpassed biden. Thats the first time thats happened all Campaign Season long in a poll over the weekend gives her a roughly three point edge over biden among likely democratic voters to be be partys nominee. Shes also getting more money. She raised about 10 million more than biden in the third quarter. You can see thats a flipflop of what happened last quarter. Both wands trail senator Bernie Sanders on that figure warren says she will be returning any Campaign Donations greater than 200 that come from executives at big tech and banking firms. It will keep big money out of politics senator sanders in a new proposal is taking aim at big business he says that rank and file workers should be minority shareholders in companies and those employees should get more stock if they get laid off he says that under his presidency, big buy backs would be illegal big mergers would be undone and the Corporate Tax rate would go back up to 35 these two sacandidates are tryi to command the policy conversation on stage. You can bet with three hours total and 12 candidates on stage, there will be a lot of ground to cover. Two hours maybe that hour and a half, what do you think reporter for those of us getting up for Early Morning television, the shorter the better although for the voters, it really does allow these conversations to be broader and more indepth on some of these policy issues Like Health Care we have seen more than an hour spent on health care really trying to drill down on the n n nuance you know whats fascinating, do you expect and i wonder how much time they will spend now . It remains to be seen certainly health care has taken the primary real estate of these debates because its the issue that is of highest import to voters here in ohio trade and lay dbor issues are front and center because you have the gm braplan closing and you have gun control front and center with the mass shooting in dayton a couple of months ago it really could run the gammet thanks very much. Coming up, more problems at wework reports of major job cuts coming the pinterest shares expiring today sending that stock lower. All of this years ipos about to experience the same thing. Well tell you what to watch when power lunch returns pinterest and zoom under pressure as insiders are given the green light to sell shares shares of pinterest and zoom trading lore tode ining lower t. Today is the day that insiders are able to sell shares. Both pinterest and zoom are two recent ipos that have out performed. Its not surprising some insiders would want to crystallize now that they can. They have 538 million shares to be sold today. That does not include the shares held by employees that are still locked up. Zoom has about 230 million shares that are free to hit the market today combined were looking at about 30 billion worth of shares available to be sold on the market today although a fraction of that amount will be sold. All in all about 140 billion worth of stock is being released from the ipo lockups in the remainder of 2019. The three largest include uber in early november and crowd strike and chewy whose lock ups will be lifted in middecember guys thank you. Now the the latest woes for wework the Company Plans to layoff another 2,000 workers after its botched attempt at an ipo. The guardian reporting that wework could be cutting as many as 2,000 employees representing about 13 of its 15,000 person staff. A few weeks ago the information reported that layoffs could be as high as 5,000 and that would be a third of its work force sources tell cnbc that job cuts are coming they could come as soon as this week wework bond prices falling to record lows as the Company Considers two rescue packages to avoid a cash crunch. One would seek control to its biggest investors and the other option would be a 5 billion financing package led by jpmorgan to top it all off, wework has a f problem. Kelly, you cant make this stuff up are they the only ones affected by this the fact this is happening across a number of sites shows you that wework has streamlined their suppliers. We dont know who that is. Its affecting a number of their sites. The major problem for them costs at a time when they are trying to cut back on costs and avoid a cash crunch that could happen as early as before the end of this year its great point. I think we would like to know who is the supplier. Who is making them thanks check out shares of reata pharmaceutical they are soaring the overall markets are rising optimism for a brexit deal, but are we overlooking the possibility of a Global Economic slowdown power lunch will be back markets. The business of trading goods and services. Nasdaq operates among the largest markets in the world. And our Technology Powers markets from indonesia to chile. Great markets are built on a foundation of trust and integrity, forged through leading Edge Technology and a smart regulatory framework. As technology advances, regulation must keep pace to allow the markets to evolve. Today we see an opportunity to modernize regulation, to make markets more accessible to investors and entrepreneurs of all sizes. From the graduate buying her first stock, to an institution investing in thousands. The markets belong to everyone and stand as a symbol of economic advancement, social progress and limitless opportunity. Thats the tomorrow that we envision and to get there, well have to rewrite it today. Welcome back here is your cnbc news update at this hour. Scotlands first minister has renewed her push for a second scottish independent referendum while addressing the Party Faithful she slammed Boris Johnson and president trump. The uk has a Prime Minister who has acted unlawfully the current incumbent of the white house in just his latest out reach has allowed a war in the middle east to be erupted. A seven Story Building collapsed in an upscale part of the brazilian city killing one person and leaving others trapped under thevivors were fot theres no word on what caused the building to collapse Southwest Airlines is getting rid of its senior discount a spokesperson says many of the same benefits of the senior discount are already available to all customers with other discount options american and united both have senior discount programs still in place youre up to date. Ty, back to you. Just when im eligible to take advantage of the senior discount then youll have to fly united or american there you go thanks, sue lets look at the markets. They are fluttering preciously clo close to all time highs. Almost 28,000. The s p 500, 20 points away from an all time high theres the nasdaq up at 81. 65 the russell up about the same. The etf that tracks that group jumping to a record as a number of stocks, materials, Texas Instruments hit new highs in todays rally. Melissa. Reata pharmaceuticals soaring today. Its a classic bio tech story. They said late yesterday its experimental drug met the goals of a Clinical Trial and will mover toward admitting the drug for approval it could drop sales of 1. 5 billion annually theres another twist to this story. Check out the trading. In four days leading up to last nights news, reata said they bought the drug back in a deal totaling 330 million. The street clearly saw that as bullish for reata, and it was right. The company has another clinical read out on the same drug in a different disease expected this quarter. Another potential move in this stock. The drug is the exact same compounds for the other diseas. Same drug, different disease. Theyre not a tiny Company Either its a 4. 5 billion company. This was not expensive to work the other read out later this quarter was expected to work this is making people even more bullish about that that sets you up for a very risky bet if it doesnt work thats fine thanks very much. The imf lowering its Global Growth sounds decent but its the worst since the financial crisis earlier on squawk on the street steve caught up with their chief economist. Theres a general slowing our estimate is all of the u. S. China tariffs the ones put in place in 2018 will reduce global gdp by. 8 in 2020. Shes saying we got to 3 we would have been to 4 absent the trade head wind. Thats a great way to put it. Ill give you one more number which is 2. 5 . Thats the number she begins to worry that a lot of are in recession. I was a bit floored by that. 8 number thats a big number on Global Growth to take off and being written in responsible for so much of the revisions. I think shes saying that if were going to go into this new world of protectionism and less global trade, were going to pay for it in less Global Growth vince, one of the questions is, in way for wall street, the scenario where the near term outlook is better as it has the past week, the october 15 tariffs arent happening today, maybe december 15th doesnt happen that can be upside while maybe the u. S. And china disengage ng the long run have less of an immediate economic impact. Is that a better outcome this kind of cold war scenario versus a hot and back and forth where tariffs keep escalating . A hot war where tariffs keep escalating is bad for global trade. It creates uncertainty and disrupts Global Supply chain even a limited deal is going to help Financial Markets because it will include the intention not to do something bad. They will not increase the tariffs that are already scheduled. The asbestos senbsence of a bada good thing the other thing you do want to remember is were talking about Global Growth. U. S. Gdp growth is in the neighborhood of 2 the total is higher because we include a lot of fast growing emerging market economy. You want to make sure you know what altitude the plane is flying flow ball is here which is relative to the scheme of thinks the u. S. Is a bit lower than in long term trend but not a lot. Where is that, steve, you or vince pick up on this. Where is the cut in estimate mostly come from is it china declining, india, europe what ill let vince weigh in after this it was kind of across the board. Everybody was kind douchb a little bit this year india was down a lot china was down and the emerging markets were down. Theyre supposed to come back next year. The advanced economies are not seen coming back a whole lot next year in 2020. Ivince, you want to jump in there and take us around the globe . Theres two sources one is the uncertainty because we dont know where trade policy is going that is just advistends to deprs investment we see a little bit of both because of the president s willingness to fight on many fronts the president said trade matters more to our trading partners than to us the par tial resolution of trade uncertainty will be better for our trading partners than it will be for us im going to add im a little less sanguine about the ability to put the genie back in the bottle if you look at the political landscape, the democrats are not fans of free rade. The republicans arent anymore you may i think the way kelly put it earlier was great we may go to a cold war and not a hot war but were not going be back in that regime of free global trade which, in my opinion, has benefitted the vast majority of people around the world. Theres no question what steve is saying. The profile trade is rotated down. You could get good news before the bad news seeps in. Thank, guys we appreciate very much. Lets get to the bond market rick is tracking the action. I cant believe tenyear yields are at three week highs. Yes it really is very interesting. Lets start at the real epicenter, in my opinion, and thats overseas. Its a two and a half month high yield. How do you make minus 41 a high yield. Look at a chart of our tenyear. Should we close here 176 will be the highest close since the 19th of september. You say three weeks. Ill call it close to a month. Tli tyler, back to you ahead, lebron james did reignite the nbas china controversy. Well tell you what he said and how the league is responding tech stocks rallying the sector inches from an all time high. Top analyst will share which names to buy ahead of earnings pot stocks are higher today but the group has been struggling aurora off by 70 . Obvious. Sometimes, they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Oil prices had been holding modestly lower heading into the close but have now accelerated some of those losses into the close overall. You with see west texas intermediate fell off by 1. 5 . Theres a bit of a sentiment change we are seeing Energy Stocks move off the highs of the session remember this afternoon will be key read here. We get the American Petroleum numbers coming well see what happens as we go into the closing bell later on this afternoon back over to you thank you very much mpl just as the nbachina was dying down, lebron james reignited it he wasnt educated on the situation at hand and he spoke so many people could have been harmed not only financially, physically, motiemotionally, spiritually. Be careful what we tweet and say. We do have freedom of speech but there can be a lot of negative he later clarified his statement which sparked further out rage thats what happens there. Activists in hong kong and even u. S. Politicians jumping in or jumping on lebron. Welcome back, jabari we heard what lebron said. What did he do by way of either clarifying what he meant or what seems to have muddied the waters even further what was his follow up comment i think the follow up comment went on for him to explain, im not getting involved with the context of the tweet it was more about him taking a stance this is what lebron james does this is what he has to do because hes one of the top tier placers. Players. He has to be the voice for the voiceless. Who more qualified than to talk about the incident than a guy like lebron james who has been to china for over ten years straight the players are upset because its them who built that relationship with china and put it on the line thats their Sneaker Companies who send them there to build that relationship. Not only for basketball and for them to learn the culture. That harmed all that and thats why a lot of players are upset and at the very fact that the nba used Russell Westbrook and James Harding to apologize for daryls comment when daryl was nowhere to be found. Where is daryl mory . He should be in front of the cameras. He should be answering these questions, not us. I dont think hes been heard from i dont want to say it definitively but i have not seen hem speaking since this whole thing happened to those who say lebron, you are toeing the line of beijing here and being a little too conciliatory what do you say . I say these are the same people that said shut up and dribble. The same people who didnt want lebron james or any other nba talk about the subjects at hand here in america. Now they want them to speak up for subjects they may not know about as much as they do here. Thats what i say to them. Those people that are criticizing the players on twitter or social media, thats where that stuff takes place i look at that and shake me head youre putting players in a very dans position. Them talking about things they really are not as educated about. Youre not going to learn about the history of hong kong in two or three weeks that will take years of study. That takes a long time to really learn the conflict and for those people who are not honoring tim that the players and nba have built up with china. Not to say everything is right or wrong, they are saying were not in a position to comment because we come over here to try to grow the game of basketball and get on the scene page, dialogue wise so we can try to come to some agreement through the sport. When you harm the sport then they cant grow other conversations. Theyre not just good will ambassadors, they have money on the line do you think lebron conceives that yes i say this because ive got money on the line in china and i have to tow that fine line im glad you said that because the word ive been g getting is they are not losing as much money. Its not the nba they are making profits. They go there in the summertime and the Sneaker Companies send millions of dollars to send them there. They will still that i cmake thr money. Theres no backlash we have to answer for it. China built a statue of stephon. Hes from new york they dont like the league and the stance they took on a sen sensitive topic. You said lebron is the voice for the voiceless and so forth youd be hard pressed to name a company here that doesnt have a dealing in china if those companies cant speak up, if theres no way to speak up, thats an issue that need to be explored as well. Kwhast interesting to me, i know were going over but i want to tie it off with this one thought. This is not a case of china sanctioning an american who stoods in the said something offensive to beijing this is a case of china reaching across the ocean and threatening americans who have said something for a tweet twitter isnt allowed in china. China has done this in other cases whether it has to do with tiebet or human rights i got the last word how does that work thanks thank you for more on the nba, china backlash find it on cnbc. Com half the dows gains coming from United Health johnson and johnson and jpmorgan all rallying power lunch will be right back earnings kicking off with the banks but another group is on deck. Netflix kicking it off tomorrow. Tech stocks nearing all time highs today. That group is up more than 30 great to have you with us. Youre out with this preview today. Which tech stock do you think has the most at stake in terms of earnings . We continue to highlight amazon, google, facebook as a basket we like those three names. If you look at the bricks are beating the clicks target, walmart, costco have stolen some thunder. Tech has been under pressure from valuations as well as the regulatory of haver hang we think of the stocks is somewhat mediocre. Its hotter for what we would say in software and other areas of tech. We think the set up is reasonable many of these companies earn to grow close to 20 . Consumers is healthy and we continue to believe the tail winds online continue. We dont think theres any material big issues. Facebook, potentially give more sour guidance on next years number but i think ultimately theyve been very conservative and that is up 40 year to date on guidance they gave they raised after the First Quarter out. We think, again, the set up looks pretty good for internet its a higher bar for software, microko microsoft and some of the other names have a higher bar to clear as we cover both sectors we think its fairly immediate i dont career mediocre going in terms of alphabet when you take a look back, they came out with a stellar report. A lot of analysts were saying this is the moment where alphabet should be rerated here we are with just about levels that the stock hit right after those earnings what happens and what does it need to do to actually get that rerating that a lot of people thought it deserved at the end of last quarter. Key one was a difficult quarter for google they snapped back in q2. They also implemented the largest buy back in the history. We continue to remain fans of google despite the concern of amazon stealing that share we believe there are many engines that are firing behind the scenes at google that will be bigger businesses for the next couple of years we also believe the valuations really favrab favorable we believe the growth will be closer to mid teens and now they have biggest buy back that theyve ever had we think they are becoming more shareholder friendly they have been viewed inside tech is one of the least shareholder Friendly Companies in terms of interaction with our clients. We think these steps towards the buy back are one great step in the right direction. They still have a long way to go the sentiments is pretty poor. S you mentioned regulatory overhang with facebook, amazon and google, i believe it was those three. Those are the ones that appeared to have the most regulatory overhang if you had to pick one thats most in danger of some kind of regulatory affront to its structure or its business, which one would it be . We think they are all three equal by if google got broken up, we think the sum of the parts would equal a lot more of where the stock is trading now they would be valued way higher than googles value today. We think all three at risk, google probably has the most to gain that would definitely grow higher i think facebook to us doesnt seem likely to be broken up. Theres really not much to break up i think they said they have more security individuals working across both platforms. Thats not a really good move for consumers and their safety again, i would put google and amazon ahead of facebook thank you thank you the marijuana stocks might be rebounding today but its been a long way down for many of these names. It is safe to buy . Dont go anywhere. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. At fidelity youll pay no commission [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 welcome back not stocks jumping today after Cannabis Company aphria reported its second profitable second quarter. Cannabis heavyweights, canopy, kronos all seeing about half their value go up in smoke in the last 12 weeks. The selling accelerated last week when hexo pulled its 2020 guidance and wall street responded with a slew of downgrades and slashed targets how should investors navigate this potpocalypse lets bring in tim seymore good to have you with us great to be here, mel you say that the promise of this industry is the same as it was 12 months ago. How can that be . I think equating Capital Markets performance to the top down story, which is also, this isnt just about a recreational market, this is truly a i think, a sophisticated Consumer Product story thats taking place at the same time brands and Consumer Products in every other sector are through technology and ai and dtc are becoming very sophisticated. The size of this Addressable Market has never been more interesting. And the performance of the stocks is more of a function of the restriction on capital and Capital Markets and companies, frankly, who issue shares to then go buy companies with these shares and i think did investors a disservice by actually inflating share prices, because that was how they did m a and i dont think that the guidance was accurate. And i dont think that the expectations were well grounded. Why, then, did the stocks not react when the safe act was passed i think, first of all, theres a difficult legislative calendar to get through. That includes getting this through the senate, which is going to be more difficult although i tend to be more optimistic than many i actually believe that the senate will approve this in 2019 and i actually think you might have some Capital Market components but the market wants to see profitability. And thats why todays numbers by aphria are so encouraging and cause massive short coffering and it reasserted the commitment of all of the companies to being profitable but a lot of these companies are not profitable lets be clear, i would say most of them are not profitable. And in growth industries, a lot of Times Companies get the pass. But i sat down with the cfo or constellation, canopy, and acreage a few weeks ago. They wanted to sit down and reaffirm their business model, but talk about profitability and the commitment to a sector where a company like Constellation Brands has almost doubled down, saying, were going hard core into the sector. So a lot of these stocks have lost two third to three quarters of their value from their high points how long a play is this before you can make some serious money . I think you have to find companies where theres alignment with investors and where actually the capital structure, actually, roll up your sleeves and do what you do in other industries. But to the extent that a company like aphria today showed they can be profitable in consecutive quarters, i think this is getting about the part of the industry where theres true profitability. And lets be clear, Agricultural Companies or big cult varieties are not billiondollar companies in other sectors so its going to be in technology, in extraction, and its going to be in the Consumer Products its going to be all about distribution and branding. And i think those companies that are doing that now are going to be successful and very profitable, sooner than later. Thanks, tim, see you tonight on fast. Up now, Frank Holland joins us for liquid lunch. Well move from one form of intoxicant to another. Wait until you see how he kes ma them, though the pod man will be with us. Heading into retirement you want to follow your passions rather than worry about how to pay for longterm care. Brighthouse smartcare℠ is a hybrid Life Insurance and longterm care product. It protects your family while providing longterm care coverage, should you need it. So you can explore all the Amazing Things ahead. Talk to your advisor about brighthouse smartcare. Brighthouse financial. Build for whats ahead℠ as beer sales decline, brewers are seeking new revenue streams. Inbev and dr. Pepper cougand keg are teaming up that makes a cocktail instead of a cup of coffee were demonstrating right now. It actually just poored the drink. Were going to let you sample it but heres the point americans drink more than 6 billion gallons of beer in 2018, but that consumption is declining. Budweiser make ab inbev seeing its own beer volume fall since 2016 the company is using tech like this to attract drinkers, pairing with keurig to make this new device called drink works. Its very similar to the coffee maker, but its for premium cocktails. Right now youre seeing an old fashion. This has a premium price, 349 for the price, four pods for 16 bucks. More expensive than similar competing products we spoke with the ceo. He admits its a big upfront investment, but says drink works uses techto make the craft cocktail trend more affordable its economically justified first of all, people dont know how to make cocktails, but even if theyd do, they would have to spend 800 or 600 to a great home bar to make 30 or 40 different cocktails, which we can provide at the touch of a button price is one thing, taste is another. 4 per drink. I can smell it from over here they say its stronger than your traditional drink youll get in a bar, because youre at home youre not driving lets see here. And if i want to add ice, obviously, i can here. Weve got 35 seconds here this is an old fashioned. Can i finish this in 35 no drinkworks expect to sell about 40,000 in 2019 but projecting 200 growth verdict, ty thats as good as any ive had in a bar really . Yeah, no, thats very good. I would like ice in it the alcohol comes in the pod. It comes in a pod ill show you the pod . Heres the pod right here. Very similar to a keurig very similar technology. My turn let me have a taste of it dont even joke like that were both joking thanks for watching power presidepower. Cheers, everybody closing bell starts me now get me one of those in one hour and 59 minutes, please. Welcome to the closing bell. Im wilfred frost. Here at the jpmorgan its up a healthy 3. 3 hit a record alltime high during the session earnings broadly helping the market we are up 1. 1 on the s p with 59 minutes left of trade and im court any reagan in today for sara eisen lets look at whats driving todays action first up, that bullish start to the earnings season as big banks and forecast from the street renewed hope that europe is closer to a brexit deal, also ha