Transcripts For CNBC Closing Bell 20240713

After reporting better than expected earnings ahead of the launch of its streaming service next week. And we have a big interview coming up in just a few minutes. Billionaire investor leon cooperman says he will support fellow billionaire Michael Bloomberg if he runs for president. Cooperman joins me exclusively to explain why joining us for the hour is mark tepper from Strategic Wealth partners mark, great to have me here. Thanks for having me, appreciate it. What is your take on the market we saw record highs this week, but seem to be moving sideways here today yeah, so, overall, investors are definitely riskon right now, because of this trade optimism i know trump said today that maybe there has been no agreement with regard to rollbacks and tariffs. But nonetheless, risk is on. And were seeing this rotation now out of bonds, into stocks. Were seeing a rotation out of defensives, which had been leading the market into cyclicals. And really, one of the biggest driving forces right now is the fact that we are in this sweet spot when it comes to what the fed is doing so this midcycle adjustment, which is typically three to four rate cuts. When you have three to four rate cuts, forward s p 500 returns over the next 120 days, historically, are up 14 when you have more than four rate cuts, that would imply youre in a recessionary scenario we are in a sweet spot right now. Its a good time to be invested in equities. Although that means one more rate cut, and suddenly it means recession. Three to four weve got a little wiggle room first of all, lets focus in on the big stories were watching today Kayla Tausche is watching the latest developments on the china trade negotiations Julia Boorstin is covering disney mike santoli has his market dashboard. But kayla, lets start with you. Wilfred, a week away from when the white house wants to sign this phase i china deal and tariffs have been a persistent Sticking Point china said and u. S. Officials confirmed that there had been an agreement on a scheduled rollback of tariffs. But today President Trump said not so fast. Well, they would like to have a rollback i havent agreed to anything china would like to get somewhat of a rollback. Not a complete rollback, because they know i wont do it. But were getting along very well with china. They want to make a deal frankly, they want to make a deal a lot more than i do. Im very happy right now were taking in billions of dollars. Im very happy so President Trump holding his support out until the 11th hour, but after the two sides agree on those tariffs, that is when they will discuss where to sign a deal, which has been the subject of much speculation. Morgan and wilf. The fact that the apex summit is not going ahead, does that allow them a little bit more wiggle room, a little more time to make sure they iron out the remaining disagreements were orr do you think its removed the countdown clock and allowing this to drag out almost indefinitely i think there is a sigh of relief that they dont necessarily have to reach a deal by next week, but theyre still trying to keep that deadline in place. That being said, there is quite a packed congressional calendar in the next few weeks and there is some worry that if you wait until a potentially rescheduled apec in january, as has been reported, those intervening weeks could prevent some unnecessary risk to the deal if you wait that long the disney beating expectations on the top and bottom line on the success of the Parks Division as well as its movie studio the big news was about disneys Digital Investments putting fx shows and new fx originals on to hulu also announcing that espn plus has added over a million subscribers over the course of the quarter. And announcing new distribution for disney plus, now through amazon iger saying hes bullish ahead of the apps launch on tuesday well, its ready to go, im glad to say. We tested it in the netherlands and well be talking about that a bit on our call and it was quite successful the product in the netherlands did not have original content, but it was extremely well received, not just in terms of the number of subscribers, but the user reaction to it. You know, very, very navigable, meaning easy to use, elegant you know, great access to our brands and our story telling iger is saying the traditional tv bundle is still very important to disney as well as other media companies, but they do believe that cord cutting will continue, which is what makes these big bets on digital all the more important back over to you Julia Boorstin, thank you mark, i bet youre happy stocks up 3. 5 today, you own it, right . I own it. Very, very happy and when you think about it, this quarter was a nonevent quarter. Its fantastic that the stock is rallying next quarter is the showme quarter, right the next quarter is where you start to find out more about disney plus subscribers. But when you look, you know, really understood the hood at whats happening, you know, espn plus is doing well, hulu is doing well, hulu live tv is something thats an underaappreciated asset, right as more and more people cut their cable tv subscriptions, they might still want to watch a live sports game theres a lot going on their studio is up 52 year over year, because they continue to drive awesome content. Heres my the question i keep returning back to yes, i realize theyre launching this streaming service and theyre now going to have three streaming platforms. This is the future, et cetera. But its going to take a while for that to take root can to have a material effect for disney at what point does it change the valuation metrics, if at all this stock was trading at about 115 bucks. As soon as disney plus was announced, it went up to like 132 bucks next day then from there in april, its traded pretty much sideways until this Earnings Call and now were back up somewhere in the 140 range it is time for them to execute on disney plus if they fail to execute on disney plus next quarter, then you might see that rerated lower again. Lets get over to mike for todays market dashboard hey, mike hello, wilf heres what weve got for you. Investors seeking cheap thrills or at least thrills in the form of cheap stocks. Take a look at the value trade on the ascendants, straddling the gap. It sounds risky, but this is the gap between stock and bond valuation, so maybe not so much. Taunting the bear, a look at Risk Appetites and how theyve changed. People wondering why they were so afraid of the bearish scenario in august already and summoning the nerve to buy one of the most beaten down, neglected groups that has not yet benefited from the value trade. First of all, heres a look at the performance of the s p 500 value versus growth, exchangetraded funds, tracking the value and growth index what you see here in white is value, and it was also underperforming through the summer and weve just nosed ahead right here officially, value is outperforming growth on a yeartodate basis go back farther, thats not been the case this is still a catchup move and something a lot of wall streets been calling for for some time. A rotation out of defensives into cyclicals and values. But as we get more confidence in the cyclical trade and traction in value, know what you own. So here are the biggest five holdings in this s p 500 value index. Apple, 9 . Is that what people think about when they say, i want to buy cheap out of favor stocks . Not so much. Jpmorgan, the most expensive large bank stocks. United health, its maybe value, but not cyclical i think theres a definition issue here when we talk about the value trade or the cyclical trade. Its not all the same thing, guys mike, i guess, longterm, traditionally, you would expect value to outperform, when there are pullbacks, to pull back less than what has been outperforming on the way up. Thats not really how thats playing out at the moment. No. I mean, value, really all it does tell you is that these are the lessexpensive stocks based on some metric it isnt always the same as defensive, ones that hold up better, when the market does pull back. So because you often in value have a lot of groups that are just deeply out of favor, like retail, like energy, its not always the case and its just a matter of them playing defense in pullbacks its really just, over time, if valuations revert to the mean, you have a tail wind behind you there. All right, mike stay with us because were going to keep talking to you about this. Not the only one discussing value right now. Bank of americas out with a new note saying, quote, value has never been this cheap. And aqrs cliff asnes in a sentiment in a note yesterday saying, quote, it is indeed time to sin a little and up the value weight somewhat. Factor timing is an ugly thing, but i think its about time we did some for more on the value play, lets bring in Bespoke Investment cofounder, paul hickey, also here at post 9. Paul, great to have you. Good to be here how much of this value debate hinges on Interest Rates right now . I think a lot of it is where do you think Interest Rates are going from here . If you think Interest Rates are going higher on Economic Growth, these value stocks should continue to do better, but to mikes point, what he was saying in the prior segment, what exactly is value you ask 100 different investors, youre going to get a different is apple value . I think apple we look at value as trading relative to the market, and apple is actually moving more towards a market multiple or even a little bit more expensive in the market so i wouldnt necessarily say is that thats a real value stock it doesnt mean we dont like the stock, but beauty is in the eye of the beholder here but whats really interesting is about, were seeing all of these in the last couple of days, calls for getting into value here over the last 50 trading days, value has outperformed by 700 basis points outperformed growth its the widest 50day outperformance of value versus growth since the 2016 election so right now in the shortterm, these value stocks are very extended and if you saw what happened after the 2016 election, all of these stocks have going to start doing really well. So i think a little bit of value, you know, you can take it, you have to have a balanced approach as an investor, but i think to go a wholesale shift, be careful at this point paul, which sector stands out for you in the value kind of mold i think the top holdings of the value index, the financials. The financials, you know, its been all tech, all the time for the last several years this earnings season, weve seen financials really start to break out here and i think the backdrop, if youre going to see getting back to that point of higher Interest Rates, thats going to be good for the financials and these Companies Like Goldman Sachs pays almost 2. 5 yield theyre going to be able to raise their dividend Going Forward and they have exposure to the Consumer Sector through the markets and the apple card so i think theres a lot of i think a stock like goldman is attractive here, and even bank of america is a name that really broke out after earnings and i think theres a lot of runway left for that stock. How do you think about the value discussion here . I guess we would probably take the hybrid approach so our Investment Strategy is garp, growth at a reasonable price, right so we do Like Companies that are growing their earnings, but at the same point in time, that valuation is important so on that value list that we just looked at, we own apple, we own jpmorgan, we own cvs, which in our opinion is the same exact Company Trading at 30 to 40 valuation discount for us, we do want the growth, but dont want to overpay for the growth mike, is there an argument that the best value at the moment comes from overseas, from europe or does that not really come into the sort of investor mindset when theyre allocating resources in the same kind of way . I do think valuation is one of the Key Attributes that would lead you overseas right now. But the thing is, it has been that case for a while and its only recently that that trade has begun to work. Why . Because global yields have lifted it looks as if the Global Industrial cycle has turned for the better after a pretty rough soft patch so, yes, i do think if you are a pureValue Investor with a very strict discipline on what youre going to pay per dollar of global earnings, you would be more overseas than not i also think, you know, it should probably go without saying that none of this has to be either or, zero sum game. I do think one of the key things people have the observation about in the summer is that very defensive, lowgrowth Companies Trading at very high premiums, because they had a dividend yield and stable businesses, liking consumer staples, that didnt make sense to people on a fundamental basis. But if you wanted to talk about facebook or microsoft is a decent stock to own here because of longterm trends, theyre not cheap, but they can still perform, even if the economy is good paul, quickly, final word, thoughts i think at this point here, you know, for the market overall, you know, were viewing it is that the fed is basically the chaperones and theyve said, were leaving right now. You know, go have fun. And its given the market a license to rally for the remainder of the year here because theyre not hiking rates until they said inflation gets above target so i think that is really bodes well for the market. And it always doesnt end well, but enjoy it while it lasts. Paul, thanks for joining us great to see you, as always. Mike, well see you again shortly. Still ahead, twitter in hot water earlier this week after two former employees were charged with spying for saudi arabia, but some experts say Different Social Media platform could be an even bigger risk well explain, ahead plus, President Trump weighing in on the latest potential entrance in the democratic race. I know Michael Bloomberg fairly well. Not too well fairly well. Well enough. He will not do very well and if he did, i would be happy. There is nobody i would rather run against than michael well take a closer look at what a bloomberg candidacy might look like. And well speak with leon cooperman about why hes supporting his former billionaire. I get it all the time. Have you lost weight . Of course i have ever since i started renting from national. Because national lets me lose the wait at the counter. And choose any car in the aisle. And i dont wait when i return, thanks to drop go. At national, i can lose the wait. And keep it off. Looking good, patrick. I know. vo go national. Go like a pro. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. 43 minutes left to go and the dow is currently down 32 points shares of zillow, though, are higher today after posting a earnings and revenue beat yesterday. The company noted record app traffic and raised its fullyear guidance and as you can see right there, that stock is up 12 right now. Do you own zillow . No. No, no, no i dont if you consider zillow to be more of a real estate stock or a tech stock. Its not one that we own our real estate play, our home play right now, is kind of unique its Sherwin Williams, right so if you think about it, what is the most costeffective way to makeover your home and make it look completely different paint, right so thats why we like Sherwin Williams the consumer is strong, but the consumer is also very price conscious right now. And i think thats the best play right now if youre looking at real estate, homes, whatever were talking about here weve got 41 42 minutes left to trade there. S ps gone positive, which would be enough for a record close if it stays there switching focus, billionaire businessman Michael Bloomberg reportedly taking steps towards launching a president ialed by. Elizabeth warren taking a jab at bloomberg launching a calculator for the billionaires on her Campaign Website to calculate how much certain people would pay under her ultramillionaire tax for buttons for bloomberg, bill gates, leon cooperman, to name a few lets bring in robert frank with more on what a bloomberg candidacy might look like. Hey, robert. Hey, wilf and what he would pay, by the way, bloomberg would pay 3 billion this year under the warren wealth tax, which he says is unconstitutional and ineffective. But his more moderate economic positions on everything from taxes to market, education, and government regulation are balanced with strongly liberal views on the environment and guns now, at an event in New Hampshire earlier this year, bloomberg said he favored more gradual change on taxes and health care. If you want to solve income inequality, one of the things you have to do is you have to adjust how progressive the tax rates are. To replace the entire private system, where companies provide health care for their employees would bankrupt us for a very long time. Its just not a practical thing. Now, mayor mike has given away over 8 billion to charity, focused mainly on gun control, climate change, education, and health care. Guys, back to you. Robert, theres so many questions to ask on this potential candidacy. The one that sticks in my mind is whether if he selffunded his campaign, that he has more than enough to kind of take on all of the other candidates combined with his financing the other question is, after the fact, if he were to win, am i not right in thinking that he would be able to sell his stake in his business taxfree that would almost pay back what he just invested in his campaign . I dont know that he could get away with it being tax free. There is that issue with Administration Officials where you have to sell something, you can defer those taxes, but i dont know that you could do that i suppose if you put them into government bonds, eventually you would have to pay taxes on those but he has said in the past that if he becomes president , he would most likely sell his company, which is valued at somewhere between 40 billion and 50 billion. So that would be a big sale either way, whether its tax free or not. All right robert frank thank you. Thank you, guys after the break, the fright before Christmas Morgan stanley says retailers could face big headwinds this Holiday Season well explain, next. And later, leon cooperman getting emotional this week when talking about his spat with Elizabeth Warren and the 2020 election i mean, i think, these people cannot only see the emotion on your face, but hear it in your voice when you talk about this, lee. Why . I care. Thats it. Coming up, we will speak with cooperman exclusively about the latest back and forth with warren plus his support of president ial run by fellow billionaire, Michael Bloomberg were back in a couple of minutes. Employees need more than just a paycheck. You definitely want to take advantage of all the benefits you can get. 2 3 of employees said that the workplace is an important source for personal savings and protection solutions. The workplace should be a source of financial security. Keeping your people happy is what keeps your people. 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Are all nongmo, sundown vitamins made with naturally sourced colors and flavors and are gluten dairy free. Theyre all clean all the time. Even if sometimes were not. Sundown vitamins. All clean. All the time. Welcome back weve got some news on mcdonalds kate rogers has the details for us back at hq. Hey, wilf were getting more details on the relationship that ultimately led to the firing of former mcdonalds ceo Steve Easterbrook. This is dow jones citing sources familiar, reporting that the mcdonalds board first learned of easterbrooks consensual relationship with a female employee about three weeks ago her identity was not disclosed in this article. It also went on to say that mcdonalds does have a longstanding policy against employees having relationships with both direct and indirect reports. It also says that years ago, easterbrook had a relationship with a pr staffer, who worked on goalens mcdonalds account. This was before Steve Easterbrook was ceo. The board was made aware of the relationship, signed off on it under assurances that the woman would be taken off the mcdonalds account, which she ultimately was, to avoid that conflict of interest, and the article also says that when this current relationship rose to the board, it voted unanimously to fire mr. Easterbrook after having several lengthy meetings and talking it over. Mcdonalds stock is up fraction gn ally today mcdonalds pup 0. 4 today. Time to get word on the street Morgan Stanley calling the 2019 Holiday Season the fright before christmas. The firm saying in a note that six fewer shopping days between thanksgiving and christmas along with a number of other factors like tariffs and Colder Weather will leave retailers on ice. The stocks best position to take advantage, offprice stores like burlington and specialty retailers like nike. I like how you said that word special speciality. How would you specialty this one i get wrong as well, susquehanna upgrading footlocker to buy saying that its special sales and allocations of jordan retroa retros and geyeezies i like the way you say it no murrah initiating coverage of offprice retailers citing autozone, lowes, and walmart and initiating ulta had a sell due to slow industrywide growth in the nearterm mark, when you look across the retail landscape right now, what do you like, especially as we go into the Holiday Season here yeah. If we go back to Morgan Stanleys comments about this possibly being a rough christmas season, i can go back maybe three, four weeks ago and walmart, one of the companies thats actually selling the christmas gifts, right, ceo was on cnbc and what he mentioned is that the two biggest predictors of the Holiday Shopping season are going to be unemployment, which is low, its 3. 6 , right were at full employment and the second thing is gasoline prices and gasoline prices are at the same level today as they were a year ago on top of that, you throw in the wealth effect. The s p 500 is probably 300 points higher today than it was 12 months ago. I think we are going to have a strong Holiday Season. Who are my favorites as i said, the consumers much more price conscious, so look at Companies Like t. J. Maxx, right . We should mention, with 32 minutes left to trade, we are set for recordclosing highs on s p and the nasdaq weve improved sentiment in the last 15 to 20 minutes. The dow is still negative, only fractionally, any positive close for the dow and s p equates to a record close can the dow join the s p and nasdaq in that territory we shall see over the next 32 minutes. Still to come, the chief of staff to Vice President mike pence will join us to talk china, trade, the fed and much more and heres a check on bonds u. S. Treasury yields ticking higher once again today, building on yesterdays big spike. Closing bell will be right back 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. Man how can i deliver superior longterm results . It begins with a distinctive approach to managing money. That for over 85 years has focused on keeping confidence up when markets are down. An approach where Portfolio Managers work well independently. And even better together. Who dont just invest, but are personally invested. Can i find a proven approach designed to deliver results . With capital group, i can. Talk to your advisor or consultant for investment risks and information. Welcome back weve got 29 minutes left to trade. Here are the key things driving the action President Trump telling reporters he has not agreed to roll back tariffs yet, as part of a phase i deal with china an early read on Consumer Sentiment coming in ahead of expectations for november and disney leading the dow up nearly 4 , having reported better than expected earnings ahead of the launch of its streaming service next week. With 28 minutes left, we are higher on the nasdaq and the s p, not on the dow. Time for a cnbc news update. Hello, wilf hello, everyone. Heres whats happening at this hour in a letter to house investigators, john boltons lawyer says his client has knowledge of many relevant meetings and conversations connected to ukraine this according to the new york times. His lawyer, charles cooper, wants the court to rule on whether bolton should testify. House democrats releasing Alexander Vindmans testimonyi the impeachment proceedings. Vindman testifying there was no doubt President Trump was asking for an investigation into the bidens from ukraine as a condition for president zlelensk to get a white house meeting with President Trump the cdc says testing of lung fluid samples from vaping patients shows vitamin e acetate was found in all of them no other suspicious substances were detected besides from that vitamin e oil. A cdc spokesman described the findings as a breakthrough and a statue of Ronald Reagan was unveiled on a site overlooking the location of his iconic speech, urging the soviet union to remove the berlin wall. And tomorrow marks the 30th anniversary of the fall of the wall you are up to date thats the news update this hour morgan, back to you. Sue herrera, thank you. Lets send it over now to mike santoli for his second dashboard. Mike morgan, markets are straddling the gap between stock and bond valuations, actually helping to support bond valuations bond yields moving up has raised the question of at what level they might be a threat to the stock market its probably going to be a w ways oh, thats the wrong one. Were going to do this first this is the absolute valuation, forward basis of the s p 500 what you see here is, it is pretty much as high as its been this entire cycle, except for this one bulge in 2017 and 2018, when the market was pricing in the huge windfall effect of the tax cuts, but they were not yet in estimates so really on a like for like basis, its almost as expensive as the market has been in a while. But now look at it compared to Corporate Bond yields, and youll see there might be a little bit more of a cushion in blue here is the s p 500 earnings yield thats earnings divided by price. This is the high grade, investment grade, corporate yield right there. The difference is charted on the bottom when its green, that means that stocks seem relatively inexpensive versus bonds and when its red, its the opposite heres one thing to keep in mind during this entire cycle, it looks as if stocks have had the advantage, simply because yields have been very low on an absolute basis through the entire 90s, it looked like stocks were too expensive. So obviously, different eras have different regimes but right now it looks like theres a pretty decent cushion right here the lows of early 2018, in terms of that spread were when you had to worry so maybe right now, as long as corporate yields dont go up too much, equity valuations look okay mike, is earnings yield the best thing to compare this to . Would it be better to be dividend yield or perhaps somewhere in between cash back yield, buybacks plus dividends i think shareholder yield, which would be buybacks and dividends, would tell you a similar story. And i think that dividend yields, yeah, sure, its useful, although it would probably have kept you out of the market for most of this bull market, simply because companies have oriented themselves away from heavy payouts of dividends on a percentage of earnings okay, mike, thank you very much for that. Southwest pushing back the return of the boeing 737 max to its lineup phil lebeau has the details for us in chicago. Phil wilf, not a huge surprise theres been growing speculation that southwest and other airlines that were planning to start flying the max again, commercially, in the first couple of months of next year, might have to push it back well, now southwest says it will file paperwork which pushes back the return of the max in its schedule until early march the delay, primarily dabecause theyre not sure theres too much uncertainty about certification of the 737 max. When you look at three u. S. Carriers and we have boeings target on the right there. Southwest is furthest out. There you see american and united, expecting to fly it beginning in early january we should point out that boeing is sticking with its target to have certification by the end of the Fourth Quarter take a look at shares of Southwest Airlines were going to show you a oneyear chart here. But guys, what really stands out actually, were not showing you a oneyear chart what really stands out, guys, is that if you go back to this stock, back when the plane wuas first grounded in march, its down about 28, 29 since then. Meanwhile, if you take a look at shares of boeing, they maintain this plane will be certified by the end of the Fourth Quarter. That is their target but as weve talked about, theyve got several steps that they need to clear before that happens. Yeah. Phil lebeau, with thank you. Mark, i mean, back to phils point right there, certification is basically just step one in this return to Service Process what do you think of shares of boeing at this rate. Look at how resilient this stock has been given all of these issues, the stock is down 5 year over year, i would say thats pretty good, right . Theres a lot of talk right now about the ceos job being in jeopardy i personally think hes safe while he may not have done a great job of managing this issue, he sure as heck has done a good job of managing the stock for all the stockholders, right . So as far as were concerned, we own boeing, right . We like the stock, we like the company. Yes, its a big issue. And were still just looking at this as a cash flow timing event. These cash flows will still be recorded and its a cash flow machine. Boeings a Great Company so have you been or would you be buying on the dips . Yes, we have been buying on the dips and we would continue to do so down 1. 75 today. Heres where we stand. Were higher on the s p and on the nasdaq any positive close for the s p and dow is another record. The dow just missing out, but fairly close, as you can see five basis points away up next, weve got your last chance trade marks looking at one stock thats nearing alltime high levels, itself plus, shares of gap are dropping on news that its ceo is stepping down. And Elizabeth Warren takin a jab at billion naaires as the wealth tax debate heats up you may have heard some billionaires on tv recently crying about that 2 cent wealth tax. Ah ahh. But we ask the top 1 10 of 1 to pitch in 2 cents on their fortunes we can invest in an entire generation coming up, leon cooperman will join us exclusively to react to warrens comments and weigh in on why he would support fellow billionaire Michael Bloomberg if he runs for president in 2020. Closing bell will be right back you should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. 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Experience amazing at your lexus dealer. Welcome back to closing bell. Weve got just under 20 minutes left to trade. We are on record close watch s p, nasdaq, both in that territory at the moment. Dow would be if it just goes positive and its only down by single digit points at the moment so as the last hours momentum continues, we could have a triple record close. Health care in the top sector followed by tech, energy, utilities at the bottom. With 18 minutes left to go, mark, what is your lastchance trade. My lastchance trade is broadcom the tech sector has been the bestperforming sector so far this year, up about 40 . But the question is always, where do you want to be . Do you want to be in semis, software well, why not get both so broadcom gives us semi exposure and after the symantec deal is done, theyre going to be generating 30 of their revenues from software those are recurring revenues thats high margin and what that does is it reduces the cyclical nature of their business on the semi side, 5g rollout is happening and all of these 5g phones are going to require more radio frequency content. Broadc broadcoms number one there. Its paying a 3. 5 dividend yield. We think its a great buy rate here you dont think this looks pricey i think theres 20 upside from here. I think this is undervalued compared to the rest of the semis. I dont think the fact that they are shifting towards more softwarebased revenues, i dont think thats being fully appreciated in the stock right now. Broadening out to other chip stocks, do you think that nows the time to be getting into some of them . I do. Especially if they start to make more progress on the trade deal. Theyre definitely under pressure given all of the trade issues weve had over the course of the last year so as these pressures are alleviated, i think semis are a great spot to be all right well keep an eye on it. Last chance trade, broadcom. This is the last commercial were going to take before the close. Well dive into the days most important stories when we take you inside the market zone and after the bell, well head to the white house north lawn where well wrap up the latest developments in terms of china trade when we speak with marc short, Vice President mike pences chief of staff and tonight, be sure to catch a special veterans day edition of mad money. Jims special salute to service kicks off at 6 00 p. M. Eastern time you dont want to miss that. And closing bell, you dont want to miss that either back after this. So servicenow put your workflows in the cloud, huh . Mmhm. Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. Dont get mad. Get e trade, dawg. Announcer the market zone is sponsored by e trade. Get 100 on us when you deposit 500 13 minutes left in the trading day and the trading week, for that matter. The s p is higher, poised for a record close the nasdaq is higher, the dow is slightly lower we are now in the closing bell market zone, commercialfree coverage of all the action going into the close cnbcs senior markets commentator, mike santoli is here to break down these crucial moments of the trading day and today weve got mark tepper from Strategic Wealth partners, alongside us, as well. We should point out, the nasdaq also set for a record alltime closing high as well as the s p with those 12 minutes left to trade. The dow needs to climb a further 17 points and it would be in record close territory, itself disney moving higher today after reporting a q4 earnings beat after the bell last night. The strong numbers come just ahead of the launch of disney plus on tuesday. Joining an alreadycrowded landscape. Ceo bob iger expressed confidence in disney plus, being able to stand out among other streaming services were not focused that much on the competition were focused on making sure that the product were bringing out is both successful from a bottom line perspective, but also successful from a consumer perspective. Weve got something thats incredibly unique. I talk about it a lot, because of those brands, disney and pixar and marvel and star wars and National Geographic and 30 seasons of the simpsons, Great Library content, great original content under all of those brand banners. Theres nothing like it. Mike, whats the valuation multiple of disney relative to netflix and relative to cbs . To disney, its so disney is about 25 times forward earnings right now so its a premium to the market. Now, a cbs is probably half that, at best. Depending on what you think for earnings next year and netflix, of course, is probably double that, depending on what were looking at in terms of the right frame for earnings so obviously, the market is giving disney a fair amount of credit upfront for being able to capture a good chunk of the new streaming market, having the weapons in terms of the content to do that inju i just think, also, it tells you how successfully the company has changed the conversation by buying fox and putting 70 billion of new assets in there, you shrink espn down as a percentage of the whole. The question is no longer how many monthly subs are you losing in basic cable, it is, how are are you going to own the future of entertainment and evening thats benefitted the stock. Mark, i know youre a shareholder in this name, the acquisition of the fox assets, looking like a good idea smart idea its definitely some pressure, right . But at the same point in time, i think really the biggest thing im looking at right now is really the partnership with verizon gets them in 20 million householding right out of the gate for free. How many of those are they going to keep . Maybe 10 million, 15 million i think that gives them a head start when it comes to accumulating some subscribers. Theyre targeting ten series and movies to kick things off and theyll be up to 45 by the end of year one. So i think its looking pretty good, overall. Shares to have gap under pressure, though, on news that ceo art peck is stepping down. Courtney reagan has more on this so a number of analysts lowering expectations for gaps share price and financials in the week of, yes, that ceo dp departure. But also disappointing guidance. Ceo art peck stepping down as ceo of gap inc. , but thats ahead of the old navy spinout, which is now in question by a number of analysts peck took over in 2016 at gap inc. Brands really started to stumble. And he wasnt able to turn it around even the standout old navy has begun to see sales fall again here in the Third Quarter, as well so Big Questions really remain about the future of the company, whether its with old navy or not. Can the gap be fixed no one knows for sure. Yeah. Courtney raingeagan, thank mike santoli, the stock is down 35 yeartodate, its down 40 over the past year and the shares are still under pressure today, even though the ceo has arguably not done the greatest job, at least from a stock standpoint right its the market basically saying that this is almost kind of perpetual decline, in terms of revenues. You have a 6. 5 billion market value, there are still 3,200 stores if you think of how small it is as a financial entity, theres not that much debt its super cheap on the numbers, but the market is saying, we dont care the company should have been taken private years ago and just kind of shrank out of the glare of the public markets, but they either couldnt or didnt want to do that do you want to touch this, mark not at all. This is a dinosaur that has not evolved, right this Management Change is long overdue. They are first of all, theyre still mall based, right . And theres declining traffic walking into the malls, but beyond that, they have some companyspecific issues, as well they are struggling to sell products at full price, theyre struggling to attract millennials. Theyve got some easerious issus they need to fix before they attract me i still like their clothes im a big fan of the toddler line, i have to say. There is value there. Its just that theyre in too many places. Lets move on and talk about mcdonalds long beau research upgraded the stock to buy today and kate rogers has been diving into that wall street was mix this week over the sudden firing of mcdonalds ceo Steve Easterbrook and his replacement, but the golden arches did get an upgrade this morning from longbow to a buy with a price target of 227. Analyst alden stump said the firm was disappointed to hear of easterbrooks departure, but believes that they are in good hands with kempczinski, saying, since his promotion to president of mcdonalds in january 2017, mr. Kempczinski has played an integral role. We should also note the wall street journal just said that they learned of easterbrooks consensual relationship with an employee some three weeks ago and voted unanimously to fire him. The company declined to comment to cnbc further on that. Back over to you we still dont know the employees identity and how direct a report, you know, she was to easterbrook thats right. Details were starting to trickle out, but she was not identified in that article. They only said that she was a employee, and once again, obviously, the relationship was consensual kate rogers, thanks mike santoli yeah, its the more detail that comes out, i think the more confirmation that investors get that this was simply, you know, a strict policy decision it wasnt theres really nothing else going on that bears on the company the stock was already down off of its highs there was already this question of what their next act was in terms of kind of putting energy into the brand and the Retail Business so i think thats still the story and its not really a trading based on what happened mark, any reason to think that the strategy at mcdonalds shifts now with somebody else at the helm i dont think so. You know, i think the main issue right now is, most of these fast food stocks, they came a long way in a very short period of time, as more and more people were flocking into that defensive trade. That defensive trade is kind of unwinding now, but to be honest with you, we dont any of those fast food stocks, but mcdonalds pulling back 12 or so, its pretty interesting right here. All right Goldman Sachs raising its price target on caterpillar and seema mody has the details on this for us thats right. Wall street is starting to warm up to cart pillar. On wednesday, it was bank of america and today Goldman Sachs raising its price target on cart pillar to 156 from 130 but maintaining its neutral rating this is a stock that has gained about 25 in the past month. While the fundamental story has remained weak, remember, disappointing earnings in the Third Quarter from cart pillar the trade story and the narrative has certainly improved analysts say they have improved visibility, and that positions the industrial bellwether to possibly benefit from a late 2020 recovery, but that really hinges on whether progress continues to be made on the trade front and further tariffs are eased. Were looking at the stock trading around 148, which is right in striking distance of its 52week high guys, back to you. Seema mody, thanks. This goes back to what we were talking about at the start of the hour, cyclicals. All of a sudden the money is rotating out of defensive, back into cyclicals one of the main reasons ca e caterpillar was right in the crosshairs of the trade war. As we see these trade tensions kind of reduced further and further, i think caterpillar could continue to go up. Industrials clearly having a nice bounce. Why arent sectors like Energy Taking part in that if its because of renewed optimism on trade . Its definitely a good question energy, obviously, by definition, is a commodity i think its harder to get excited about the individual corporate stories and their ability to have earnings estimates go up next year if they simply execute in a growing economy. Energy companies are you know, theyre passive. Theyre not necessarily going to be able to capitalize on i think industrials have they kind of have the hearts of investors already, because people like the industrial conglomerates, they like the aerospace cycle, they like just in general the Capital Spending story, and i think that kbi distinguishes them from Something Like energy. Weve got just over three minutes left to trade and are set for record alltime highs on the s p and nasdaq the dow is lower by just five basis points anything positive would be a record alltime closing high for the dow also mikes been having a look at the market internals mike, what stands out . Its been mixed we look at the advancers and decliners in the New York Stock Exchange its been around the breakeven mark all day its right now slightly to the positive here. This has been one of the real supports of the market, people saying, look, cumulative breath in the market. Advancers versus decliners made pan alltime high. But it has stalled out in the last few days. The market seems a little bit fatigued they dont want to look at the volatility index, as well, on a yeartodate basis theyre seeing it click down right toward 12. Its pretty much at or near the years lows. 12 is really is that separation between normal neutral conditions and very sleepy and one where the market is not prepared to absorb some kind of a shock. But it also does reflect the action itself. Its been a flattish market near alltime highs all right weve got two minutes left to go lets send it over to Rick Santelli for a check on bonds. Rick its been a huge week in stocks, dollars, and bonds look at a twoday chart of tenyear note yields 187 intraday high for the week but were darned close at 193, were up, open the chart up this is a big day and week, because weve taken out those september 13th highs, both in 10s and 30s. Final, the dollar index drops 2 in october this is the first week in november, its head up half of that at 1 and bertha, not only a record close, sixth week in a row for big nasdaq, higher closes. Whats going on . And a lot of that has been driven by chips, which are the best performing sectors this week qualcomm, one of the poster children there one of the big Chip Companies that posted strong earnings. We also had veco and Great Results from synaptic. In biotech, were also seeing a big recovery this has been the beaten down sector, up for six straight weeks, as well regeneron, one of the poster children there one of the best performers after a really stropg beng beat in its earnings expedia is the Online Travel firms are seeing a lot of competition and having to spend a lot more to get customers. Bob . Over to you. And we had a rally going into the close, bertha. We moved about ten points on the s p 500 in the last hour or so and we were led by two important groups, health care and technology stocks. Theres the s p. Were going to close at a new high right now, but health care and technology stocks, great today. Cardinal health, for example, cigna, also strong in the Health Care Group nice move up there, about 1. 5 for cigna today. We also had some nice moves up in some of the technology names, as bertha noted going into the close. Xlk, which is the big etf for technology, thats closing at a new high theres the closing bell, the dow has been trying to get into positive territory other than a brief moment after the open, it hasnt been there well see if we can get there right now. Its closing down three points, no, just went positive theres the Dow Jones Industrial average going into the close, s p up 7 another record for the s p welcome to the closing bell, everyone. Im wilfred frost. And im sarah brmorgan brenno sara eisen zplp t the dow just eking out one basis points worth of gains right at the close, taking it into positive territory for the day and following yesterdays record close that is, of course, another record for the dow the russell up a decent third of 1 , but still about 14 or 15 points away from its own record. The dow transports if i we sd slightly lower all of the major averages finishing the week in the green. Coming up, our exclusive interview with Omega Family Office chairman and ceo, leon cooperman. Hes here to tell us why he would back fellow billionaire Michael Bloomberg if he runs for president in 2020. Mustwatch tv. Joining us, in the meantime, though, to talk about the market day is mark tepper from Strategic Wealth partners is still with us. Also joining in, barry nap from ironsides macro economics but mike santoli, first, lets start with you we finish the week with new records again. Yes so a fifth straight up week. And the whole thing has been a process of removing all the reasons you had to worry or people had to worry in august and september. If you were worried about a recession seems imminent, the data has not cooperated with that consumers fine, employments fine if you were worried about tin votered yield curve, thats been corrected. Yields are up off the lows i think it has been mostly about relief replacing fear. The question is from here on out, tactically, can we go straight up from these levels . Its probably not likely, but i do think seasonal factors are now favorable and credit markets are fine so its pretty tough to find a reason to point to the market and say, it kind of doesnt deserve to be here, even if, in fact, theres not an immediate first a big move this week as well in yields. What do you make of that move that weve seen and what does it mean for stocks . So my perspective on this, and actually, i was down here when we were at the denumon of the inversion. And my thesis around it then is it was not forecasting a u. S. Recession, it was reflecting Global Manufacturing and global trade recession. So the disinversion now is reflecting a recovery in global trade, which is evident in some of the data, as well for example, last nights chinese trade data disregarded the export piece their ordinary imports, which is how much they take out of the rest of the world. When the chinese heavy industry sector collapsed back in 14 through 16, that went from plus 15 to minus 20. This time, it troughed at minus 8 in and around july its only falling at a 2 annualized rate. Youre seeing decent upward momentum and lots of indications that global trade is starting to pick up even in the u. S. , right, our ism report a week ago, the market optimismly fe officially fell off. Furthermore, all of the equity markets are pointing at a recovery in global trade you guys were talking about cat right before i got here. Morgan, you pointed out that transports have gone to a 52week high all of these things are really pointing towards a global a recovery in global trade and manufacturing, and that to me is what the yield curve is really saying right now and i agree with mike. Were right into a very favorable seasonal period. This should extend right through the end of the year. Thats how i would be thinking about that mark, your take on yields and what it means . So very, very bullish right now. When you look at how steep the yield curve is, its probably about as steep as its been all year and the thing that really stands out to me. When the yield curve became disinverted, uninverted, whatever you call it, right, initially it was because of a bear steepner. It was the short end of the curve dropping, right . But now what were seeing is more of a bull steepner, which is the long end of the curve going up, which is good, and thats bullish for stocks. While the markets have been hitting record highs, some stocks have been left out of the rally, namely some recent ipos on the week, uber is down 13 , luxury consignment retailer the real real down 25 and revolve down 22 mike, is this some stockspecific stories, but any stock with a valuation multiple that doesnt really exist or is negative earnings and is getting slammed . The market has lost its appetite for buying these stories that really have no visibility to when theyre going to be profitable feeling as if the public investor was kind of meant to hold the bag for private investment i dont think that any one of them has necessarily abandoned at these levels or anything like that, but it shows you yet another thing that many people thought might sink the market, which is the supply of new unicorn ipos, which is somehow going to throw off the supply and demand of the overall market, or that refusal of the market to buy into these means Risk Appetites would be going away barry, when you see names like this, many of them high growth, no profits, even though some of these names, uber, for example, have laid out a path to profitability over the coming years, when you see them continuing to come under pressure, do you think its a sign that investors are becoming more discerning about where theyre putting their money in this market . I just think that the theme right now is you know, reflation, the recovery in global trade, and underneath all of that is a real surge in intellectual Property Investment but more on the enterprise level. So, the best number for me, not this week, but the week before was, from the gdp report, the fact that research and Development Spending picked back up, that Software Investment picked back up in the Third Quarter. My bottoms up estimates have s p capex actually turning significantly higher from here and research and Development Spending, strongs its been at any point in the last three business cycles, so i think that if youre thinking about tech at this point, you should be much more focused on enterprise tech than some of these consumer stories that arent even in some cases Technology Companies is uber a Technology Company or really sophisticated cab company . You know thats how id be doing at that. That does seem to be a lot of the debate here. Everybody, stay with us. Were going to get over to bob pisani for a look at stocks in the Winners Circle this week. Were at a new high in the s p, but the big high for everybody was that are 20 basis point move in the tenyear yield, that caused some very significant rotation, even beyond and above the cyclical rotation weve been seeing homebuilders suffering with the higher yields. Utilities, also. This caused a real little modest earthquake in the starkt is it going to continue this yield rally . He says a higher tenyear yield. My vote pb stock of the week, believe it or not, general election, a new high again today. This stock has been on fire since the overall earnings came out here best eightday performance in ten years, up 26 guys, in the last eight days. Amazing new high for ge. Bob, thanks very much for that after the break, well speak with Vice President pences chief of staff, marc short, about china trade negotiations, the economy, and much more and heres what else is on deck coming up, billionaire investor leon cooperman getting emotional this week talking about the 2020 race. I care. Thats it. And Elizabeth Warren apparently noticed you may have heard some billionaires on tv recently crying about that 2 cent wealth tax. Ahh. Now, cooperman says hed support fellow billionaire Michael Bloombergs potential n president. Hell tell us why exclusively in hell tell us why exclusively in 90 seconds well sure, at first, but jj can help you with that. Jj, will you break it down for this gentleman . Hey, ian. You know, at Td Ameritrade, we can walk you through your options trades step by step until youre comfortable. I could be up for that. Thats taking options trading from wall st. To main st. Hey guys, wanna play some pool . Eh, im not really a pool guy. Whats the hesitation . Its just complicated. Stepbystep options trading support from Td Ameritrade keep going, keep going. [maniacal laughter] gold right, uh. Thank you, for that, bob. But i think its time we go with gbtc. Its bitcoin exposure through a traditional investment account. Nice rock. Its time to drop gold. Go digital. Go grayscale. China would like to get somewhat of a rollback, not a complete rollback, because they know i wont do it but were getting along very well with china. They want to make a deal frankly, they want to make a deal a lot more than i do. Im very happy right now were taking in billions of dollars. Im very happy that was President Trump earlier today telling reporters he has not agreed to roll back on tariffs on chinese goods. Joining us right now to talk more about the latest in china trade negotiations, marc short, chief of staff to Vice President mike pence good afternoon to you, marc. Thanks so much for joining us. Wilf, thanks for having me on whats your take on this . Does phase i have to be signed before there can be any other rollback i think the president has been clear that hes not advocating yet rolling back tariffs, but i think its important to note that he did agree to delay the current or the announced increase in tariffs, as these round one negotiations go on and the feedback that we get from secretary mnuchin and ambassador lighthizer is productive negotiations. So i would were very optimistic that round one will be completed and hopefully signed before the end of this year in terms of that timeline, marc, youve got another trench of tariffs thats expected to go into place on december 15th. Is that the timeline were working with right now morgan, i think that that is likely within that timeline. I dont want to try to tie mnuchin and lighthizers hands to a specific deadline, because i dont think there is one but the september 15 october 15th round that was delayed continues to be in advance and i would expect as we approach october 15th, that everything before there is locked up. Would it be fair to say that your boss has a tougher view, a tougher stance on china than perhaps the president does today. Maybe they were seeing eyetoeye originally, but with the president slightening softening his position, is the Vice President s view tougher now . No, wilf. I think that theyre pretty much in lockstep. I think that its hard to find an administration that has reset the relationship better than this administration has. I think for the last few decades, ever since china was allowed in the world trade organization, there was a hope and a belief that other freedoms would follow and we havent seen that in china. We havent seen a discontinuation of the human rights abuses, the persecution of religious freedom weve continued to see intellectual property theft and weve continue to see them operating in the way that the communist party of china always operated but if you actually look at the Vice President s remarks, he went through this very carefully with the president we highlighted all of those abuses, but the Vice President very clearly said, for those of you who think were trying to decouple from china, absolutely not. Were looking to negotiate with china. Were looking to work with china. But it means we also have a realistic view of what the future holds and its not a naive notion that if you just allow more trade and you allow them in the world trade organization, that all of a sudden china will change we havent seen that in 25 years. And instead, theyve become a Greater National Security Threat to the United States and this administration has very clear idea on that i guess, then, my question mark is whether this is a strategic decision by the Vice President and the president to play kind of good cop bad cop, because that speech you mentioned on october 24 by the Vice President was very, very tough on china it led to a very fierce response from a Foreign Ministry spokesperson for the chinese, saying it exuded sheerary gans and hypocrisy and was packed with political prejudice and lies china expresses its indignation to that speech i expect one wouldnt want to elicit that response from a chinese official at the same time youre trying to get the ink dry on a trade deal. Were pleased that the folks in china were able to lead and listen to the Vice President s speech i think the Vice President gave a speech a year ago with the Hudson Institute in which he gave similar remarks and we just hope the people of china get to read the speech, because there they dont enjoy the same freedoms of speech. And i think that the Vice President is very encouraging that we want to have a relationship with the people of china. Unfortunately, its their government thats had such a repressive regime. And i think thats been the position of this entire administration it doesnt mean, as i said, that we cant strike trade deals. And i think that the president has been very clear about looking at factories across the country that have been shut down because of unfair trade deals and wanting to basically start a new chapter. In what our trade negotiations are. And i think hes been a successful at basically starting over again and we look forward to more productive relationship moving forward this, as you said, would be phase i. The more, i think structure reforms will be in the future. Mark. I want to shift gears a little bit, because a country like china, certainly, theres this expectation now based on history that theres going to be things like censorship, espionage, et cetera but given the news we got this week about former twitter employees charged with spying for saudi arabia and digging into the accounts of kingdom critics, saudi arabia is such a key ally in the middle east for the u. S. How do you think the u. S. And American Companies should be responding to a situation like this well, i think that, unfortunately, a lot of countries dont enjoy the same freedoms we do in the United States and we hope that American Companies are exporting the same ideals that we hold so dear here in america and whether thats saudi arabia or china or others, youre right that saudi arabia is a Strategic Partner in the middle east and has been an ally against countries that i think pose a serious threat to the United States like iran but it doesnt mean that we turn a blind eye to human rights abuses all right marc short, thanks for joining us today thank yall for having me on. Omega Family Office ceo leon cooperman telling cnbc that he would back former new york mayor Michael Bloomberg if he decides to toss his hat into the democratic president ial primary. Cooperman saying that hes a, quote, huge fan of michael and unless he changes his stripes, he will have my unequivocal support. His comments come after back and forth comments between him and Elizabeth Warren if Elizabeth Warren is elected president in my opinion, the market drops 25 all were saying is if you make it big, i mean, really big, i mean, 1 10th of 1 big, pitch in 2 cents so everybody else gets a chance to make it the vilification of billionaires no sense to me. I think these people cannot only see the emotion on your face, but hear it in your voice when you talk about this, lee. Why . I care. Thats it. You may have heard some billionaires on tv recently crying about that 2 cent wealth tax. Ahh. Ahhh joining us now in a cnbc exclusive by phone is leon cooperman, chairman and ceo of emega Omega Family Office. Leon, thank you so much for joining us my pleasure thanks for having me i think. I want to make sure we get on to Market Dynamics with your expertise on that. But forgive us for starting on some of this political back and forth and i want to start on the news that Mike Bloomberg may be considering throwing his hat into the ring. You would support that, would you . I would but before i get there, if you wouldnt mind, indulge me for one second, i was in physical therapy this morning, i have a shoulder problem, and i understand the president was asked a question by a reporter about suggesting he not run again. Thats not really what i said. And what i said on cnbc earlier this week was, if i was the president and of course, im not if i wasnt prepared to change my dialogue and treatment of people, for example, you know, romneys a jackass, hes a terrific guy, you know, john mccain is a true war hero, he has to be president for the entire country and not just his base. So if i was him, if i wasnt prepared to change and i dont think he is prepared to change, for example, he already labeled Mike Bloomberg, you know, little mike. You know, hes the same size as i am, height wise. Hes much thinner than me, which i envy but i would tell the president , take a justifiable victory lap and not run again. You know, the stock markets at a high, he can take credit for that the economys growing. 5 million jobs have been created in his presidency. We have record high employment, recordlow employment for minorities hes taken on a tough trade battle with china. Hes focused on discussion of illegal immigration. He reduces red tape and hes bolstered our National Defense so, you know, hes done a good job for the time hes been in office and he should get credit for that but he has to be more president ial and if hes not prepared to do that, i would say, step aside. Now actually, before we get on to bloomberg, forgive me, leon, please, indulge me now call me lee all my friends call me lee youre my friend thank you, lee. I certainly will but you mentioned the comments that the president made relating to you personally today. It was in response to a question from our eamon javers. Lets listen to that quickly now. Heres the president talking about you, lee good. I dont know leon cooperman, but whoever leon cooperman is, i know of him, he can have his own view but in the meantime, im making him rich and im making a lot of other people rich. Everything about our economy is just about the best its ever been lee, did the president lie there . Does he know who you are well, look, im not a major guy. Im a little guy he did meet with me. I did have dinner in the white house with him through the offices of a good mutual friend, but he has a lot of things on his mind so he might not remember but we did have dinner in july of 2017 in the white house there was about ten people at the dinner and the president and it was an interesting, good dinner but i dont think he lied. You know, how many meetings does he have . Sure. You can find a lot of things to criticize about him, but not about that far enough, lee lets move on. Bloomberg, you remember going to say, why would you support him im not a registered democrat, youve got to understand that. Im an independent i tend to vote the person and the issues i think Mike Bloomberg is terrific and i hope the Democratic Party agrees and gives him the nomination hes a unifier hes been extremely generous with his resources i read somewhere hes given away about 8 billion over the last number of years. Most importantly to me, i like people that are not pretentious. Hes never forgot where he came from he understands how the economy works. I remember when politicians in new york city im not a new york resident. I have a home in new jersey, but i live mainly in florida i remember when politicians in new york city were pushing for a billionaires tax. He said, if you lose one billionaire, youve lost more revenue than you would have got from everyone else he understands how the system works. And i appreciate that. Im not particularly close with him, by the way. My view is not based on some sort of deep friendship, but a coldblooded saem eed assessmens performance as the mayor of new york city. And my understanding of his values, which i relate to. If he changes his stripes, i could reserve the right to change my opinion. At this moment in time, i appreciate his willingness to put up with all the blaloney you have to put up when running for president. We all have certain skeletons in the closet and i hope he doesnt have any because i think hes terrific and i think hes probably running because he doesnt like what hes hearing from most of the candidates and feels he can make a difference he has a lot of energy and i think he can make a difference thats where i come from. Lee, you know you mentioned that you see him as a unifier. If bloomberg runs, theres going to be a difficult path to get through the democratic primary, given the fact that the debates have been centered so much around economic inequality, and theres a fear there that if he enters the race, it fractures the voting base. How do you see it . My guess is that hes more likely to raise taxes, a rich individual, than a poor individual would raise taxes its the way you raise taxes my problem with Elizabeth Warren, to be honest with you, is, i have a criticism and i have a different view, okay . My criticism is, shes acting like a politician and i use that word politician, in the most uncomplimentary fashion. Why is she attacking and Bernie Sanders attacking billionaires most billionaires i know work very hard for their money, okay. They didnt hit a lottery, didnt inherit it, and do good things with their money. So i think shes pandering to a base there are obviously more poor people in the country than rich people and its easier to, you know, criticize wealthy people i dont know of any wealthy people myself included whos not prepared to pay more in taxes. Its how you get there i think 14 countries have tried a wealth tax and 10 dropped it it is totally disruptive its the wrong approach. Every year, youre going to do some kind of evaluation of your net asset value, okay . And youre going to give 2 of your net assets away how are people going to figure out their net worth . Take jeff bezos, where probably the vast bulk of all of his fortune is in amazon stock we have a 37 tax rate at the federal level. Get rid of the carried interest, get rid of the 1031 tax deferral there are so many things we could do raise the tax rate weapon dont need the irs has been promising us simplificat n simplifications for the last 50 years or longer. 76 . Ever since i started paying taxes, i recall, it was going to get simpler. Its gotten more and more complicated. I dont even read my taxes anymore. Thats a different issue i criticize her for her style. She couldnt, you know, mock me, make fun of me thats fine, i dont care. I know what i stand for and done and i know ive lived the American Dream, by the way and im very focused on helping others live the American Dream my wife and i, my family, we send 500 kids to college in newark, new jersey, we pay our tuition, have done other things and look around the city of new york and what do i see, i see names of flaphilanthropists on hospitals. My favorite is ken langone hes really helped change nyu. So i dont think i dont understand why she and sanders find a need to criticize billionaires and as far as mike is concerns, theyll take a billionaire to probably raise taxes on other people and i believe, by the way, in the progressive income tax structure. I believe rich people should pay more in taxes. And with the right numbers, i dont know, as i speak to you on the phone, i look at a quote here from a gentlemen, since this is an area where many people are concerned about fairness and social justice, what is your share of what someone else has worked for . Thats the question. Ill ask the three of you. I dont know what you make for a living, but i know you work hard and youre very conscientiousness. How many months a year do you want to work for yourself and for the government ive said publicly, ill be willing to work six months for the government, six for myself how many months do you want to work for yourself and how many do you want to work for the government i agree lee, i think that feels about right, 50 for people fortunate like yourself and like me. I guess, one followup nuanced question, forgive me, and we can go back to the Bigger Picture question do you support the elimination of the taxfree step up in the basis or not is that an area that you do think there is perhaps some reasonable criticism sorry, go on i have no problem with the inheritance tax. I guess you could say im biased, because i took the giving pledge nine years ago and i told Warren Buffett that asking for half wasnt asking for enough my intention was to give it all away i plan to give away all my money. But i havent focused on that aspect of it i have focused on carried interest, which is to eliminate. I focus on 1031, which gives these real estate billionaires the ability to roll over tax deferred forever, Capital Gains in their real estate they should get rid of that. And i have no problem raising the marginal tax rate. So i havent focused on that one particular question. Ive always felt longterm Capital Gains in part stem from inflation, so tax inflation is wrong. But lets come up with a number. Leon, lee, i totally get with you, and what i also wholeheartedly agree with is that in all of these interviews, in all of these comments, your letter to senator warren, you outline many, many ways in which youre willing to pay more tax and thats never, of course, the focus of hr responer responses and she mocked me before, i broke down when i talk about family and doing the right thing for the country, and she makes fun of me. But the reality is i guess, lee, the one point i just and this is a minor point relative to all of the wider, very legitimate points you made, but a wealth tax, of course, focuses on accumulated wealth to date and you and i both know, as you highlighted with jeff bezos, as an example, how impractical, almost impossible it would be to enforce that i guess the its also wrong its also wrong. Someone would push back and say the step up basis does then allow that accumulation of wealth never to be taxed i havent focused on that what i have focused on is the currently laws says 37 hello, did i lose you . No, no. Were still here were still here what im focusing on is 37 of your income goes to federal government depending which state you live in, anywhere from say 8 to 14 goes to the government then youve got a fica tax of 6. 5 then a medicare tax of 90 basis points without any limitation, then you have the 3. 6 , i think, tax, Obamacare Tax on dividends and interest you know, let us decide what the maximum tax rate should be on wealthy people the wealthy people in this country pay the majority of the taxes. As it should be. Lets decide as a nation what should the maximum tax rate be on wealthy people and that will define the revenue yield to the government and the government decides the activity to that revenue yield, okay and thats kind of simple. We dont need a wealth tax it can be totally disruptive just think about it. I assume the way it would work is every individual thats wealthy will have to do an attestation, sign an affidavit which what they say here is truthful and honest. How many people are going to go out and buy gold and stick nit a safety deposit box its a misallocation of resources. Its not the right thing we dont want jeff bezos to sell amazon stock every year if he doesnt have to sell stock or he doesnt think a stock should be sold lets get the tax rate to where it should be we have to help poor people. We have plenty of wood to chop and plenty of things to do but we can do it in a better way i get back to what i said. She is totally offbase by this constantly criticism of wealthy people the wealthy people i know, david reubenstein, ken langone, bernie marcus, Mike Bloomberg, these are all philanthropists with a capital p. Im a philanthropist with a small p. Im flattered you even want to talk to me im not overly relevant but i have an opinion and im willing to express that opinion. And i think shes on the wrong track, and shes on the wrong track because she wants us to appeal to a base and i will bet you a dollar right now, ill bet you a dollar right now that the average person on the street has no idea what percent of the income the wealthy people pay in taxes. They think they get away with paying nothing its baloney just like i read google did a survey after brexit and they said the average british person did not understand what brexit was all about, but they voted for brexit, okay yeah. You know, we have to improve economic literacy. We have to have justice and fairness in the tax system get rid of the loopholes we dont need a wealth tax its a joke and its not going to work. And i havent even said all along. The people aif read said its unconstitutional but im sure shell find some cockamamy attorney to tell her that its not. Lee, in the midst of this conversation were having and sort of going back to something you mentioned before, i wonder if you think the concept of the American Dream is in jeopardy right now . Its such a longheld fundamental, societal value, but it seems to be very much in question and under siege is that how you see it it is but, you know, it exists in asia you know, all the billionaires are emerging there hopefully we dont lose that in america. The country is moving slightly to the left. I think its basically because of income disparity. And my answer to income disparity is basically a fairer tax structure, i agree with that but its more Economic Growth and education. Education is key we got to educate the youngsters so they can be competitive in the economy that we live in. Simple as that lee, one quick final question we know your view on what the stock market might do if Elizabeth Warren became president. As we stand here today, given that the election is a year away and that it could go either way, do you think the s p 500 is a sell, particularly as it sits as a record high . No. Not really ive been saying consistently, i think i was recently on with scott wapner, that the conditions that normally occur at a market top, you know, recession, accelerating inflation, hostile fed, you know, unforeseen geopolitical event, the last one, of course, you cant forecast, but we dont have signs of recession, inflation, if anything, theyre trying to get it up. The fed in my opinion is more than accommodative they just create an environment where its free money and this is, you know, aiding and abetting the speculative activity and i dont think its going to change anytime soon. I would say, so, i think the market is okay beyond for year, i would say i have more conservative view, somewhat concern theres nobody talking about the debt buildup in the country. Republicans, democrats and were creating debt at an alarming rate. And thats a factor. Second is the shift to the left, you know i mean, i will tell you, by the way if elizabeth thinks im prejudiced against her, im not. Bernie marcus excuse me, if Bernie Sanders was elected, it would go down to th25 , maybe more im very worried about the Market Structure ive talked about this previously when i came to wall street 51 years ago, the volcker rule didnt exist and brokers traded stock for 50 cents a Share Brokers commission is largely gone and the volcker rule exists, so the brokers are no longer stabilizing forces. And secondly, when i came to wall street, the New York Stock Exchange handled 80 to 90 of the volume today 80 of the volume is off the board. So the Specialist Community dont have to stabilize. And finally, youve got the elimination of the uptick rule, which gave rise to a lot of these quantitative Trading Systems that dont need an uptick to go short and they buy strength, they sell weakness so things get exaggerated in both directions. In the Fourth Quarter last year, you had the worst quarter since the Great Depression on virtually no economic justification. It was just absence of liquidity in the market, hedge fund liquidation, tax loss, that. So i think the market is okay at fre the present time i dont understand why the fed is so aggressive nin cutting rates. Consumer net worth is at a record level the economy is growing at trend. Corporate profits are decent stock repurchase activity would suggest that Business Sentiment is good, not bad the rates are already very low were really tagging the savers. If you take the Interest Rates and adjust for taxes, theres no return on savingsavings, which everybody out on the risk curve. That will change one day, but not this year. Lee, thanks so much well have to leave it there and allow you to get off to your weekend. Have a wonderful weekend and thank you for your time and your candor, as always. My pleasure, thank. Well speak to you soon, lee. Lee cooperman, chairman and ceo. Guys, i mean, mike, clearly, a relatively bullish three to sixmonth view on the market, which perhaps we could come back to, but continuing this debate, and a theme that tii think is important to highlight, a lot of these wealthy people that have been on our air, almost all of them do come out and say, im willing to pay more tax. Its not the line that gets picked out of the interview or picked out of the commentary by certain politicians, but that is the overarching theme from mr. Cooperman. Yes although there has been a movement for decades to actually reduce the actual effective tax rate of people at the upper end. So, you know, were its not been politically feasible to do that and i think its just politically very expedient to talk about a wealth tax, even if you dont think it will ever happen and in this day and age with twitter and the way things work, in an election campaign, you can understand both sides add some spin and emphasis in the direction that helps them. Two former twitter employees charged with spying this week for saudi arabia well tell you the social media platform they used to target information. Longel iba aer this bls ckft hat does the word partner really mean . Someone i can trust. impact, click who is with me for the longterm. Who understands im dealing with lives, not only livelihoods. That in order to help people, i need more than products, i need Quality Support and insights. Can i find someone who partners with me to achieve peoples longterm success . With capital group, i can. Talk to your advisor or consultant for investment risks and information. 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℠ when you look at the world, what do you see . Where others see chaos, we see patterns. Connections. Relationships. When you use location technology, you can see where things happen, before they happen. With esri location technology, you can see what others cant. By the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. We have a news alert on wework and deirdre bosa has the details. Deirdre . More ga morgamorgan, the wewo continues. The company has posted an Investor Presentation online, outlining a 90day plan to turn around the struggling companies. It includes plans to divest all noncore businesses and reduce head count theres a certain slide that outlines the evolution from pre pre2017, founderled, partially focused to the last few years calling them distracted and a decentralized Business Model to what founder clooure will focuso Going Forward. Now, this comes on the heels of an email that clure sent last night to employees we saw it here at cnbc, emphasizing that the business is secure and saying that he will outline a fiveyear Strategic Plan to the board on november 19th back to you. Okay, d. , thanks so much for that still ahead here on closing bell, saudi spies and social media. Two former twitter employees charged earlier this week with spying for saudi arabia, but it ieons out the main hot spot for sps a completely different platform well explain, when we return. Dont get mad. Get e trade, dawg. Welcome back to closing bell. Lets get over to mike santoli for his third dashboard of the day. Calling this taunting the bear, i dont think investors are quite taunting the bear. Look at the bull bear indicator from bank of America Merrill lynch. This is supposed to measure an indicator of sentiment and positioning by hedge funds and all of those things that tell you what the Risk Appetite of a market is. And it does tell you people are very despondent and positioned very defensively back in the summer youre barely up to neutral levels this is a net bullish signal that basically says, people are not fully committed to this rally just yet and its the reason why this firm, Michael Hartnett over there is essentially saying, were going to overshoot to the upside he thinks by 3,300 mike, thank you very much for that now, two former twitter employees charged earlier this week with spying for saudi arabia, but it turns out the main hot spot for spies is on a completely different platform. Yeah, wilfred, this is a little bit surprising after that story broke. I called a bunch of former and current u. S. Law enforcement officials who told me one of the areas that they watched the most on social media is linkedin. We think of linkedin as a more boring than twitter place where you post your resume and network for a new job. But actually, they say, because of the nature of the personal and professional information that people are putting up on linkedin, its a real honey pot for spies to go after all kinds of information about companies and governments. I talked to linkedin about this, too. They say theyre aware of the spying problem on linkedin theyve been working on it for years, they say. Take a look at some of the numbers, including this one. More than 20 million, they say, fake accounts were taken down by linkedin from january to june of this year. They say a lot of those, they were able to take down while they were still registering the accounts so people couldnt impersonate other people on the site they say 2 million of those accounts were taken down before the members even ultimately complained about them. 67,000 accounts were taken down after members complained so theyre saying, they are getting a lot of these before they even have a member notice that theres a fake account out there. Also, 24 is the number of apparently fake russian nation state actor accounts that the Company Restricted back in 2018. They say they were able to crack down on those, which were spreading disinformation on the linkedin platform. In a statement from linkedin, they said, we actively seek out signs of statesponsored activity on the platform and quickly take action against bad actors in order to protect our members. I talked to a current u. S. Law enforcement official who told me that they have a Good Relationship with linkedin they say that the company is very good at working with the u. S. Government to try to root out as much as this as possible, but theres a lot of it going on, wilfred. There is, eamon, and i would point people to your full writeup of this fascinating story on cnbc. Com. Eamon, thank you thank you up next, its musk versus einhorn. The tesla ceo taking another shot at the Greenlight Capital founder and einhorn isnt back dou ing down the latest on their feud, ahead. He wanted someone super quiet. Yeah, and he wanted someone to help out with chores. So, we got jeanpierre. But one thing we could both agree on was getting geico to help with renters insurance. Yeah, geico did make it easy to switch and save. Oh no. Theres a wall there now. Thats too bad. Visit geico. Com and see how easy saving on renters insurance can be. Val, vern. Im off to college and im not gonna be around. Im worried about my parents retirement. Oh, dont worry. Voya helps them to and through retirement. Dealing with todays expenses. Like college. While helping plan, investand protect for the future. So theyll be okay. Without me . Um. And when we knock out this wall. Imagine the closet space. Yes oh hey, son. Yeah, i think theyll be fine. Voya. Helping you to and through retirement. As your life grows, so do your needs. And with bank of america and merrill, the benefits you get can grow, too. As a preferred rewards member, you can enjoy Priority Service and exclusive discounts. So your growing life can be more rewarding, too. What would you like the power to do . Elon musk reignitinghis feud with Greenlight Capitals einhorn and einhorn isnt backing down leslie picker has more on this the ongoing food between teslas founder and its most vocal short seller once again spilling out on to the main stage again today. Musk tweeting a letter to einhorn saying that his latest quarterly litter was rife with, quote, false allegations against tesla. Musk said einhorn was only making those to save face with his investors after teslas successful Third Quarter einhorn fired back, noting that they both struggled last year, but that a big difference was that his firm, greenlight, had generatedreal profits for thei investors since they began in 96. Einhorn said that his tesla short hasnt performed badly, although that stock has soared 40 over the last month, guys. Not badly overall but not well in the last month or so. Not a good month for tesla short sellers. Thats for sure. Leslie. Thank you. Up next on closing bell we drill down on oil. Mike will head to the telestrator with a deep dive on energy stocks. Do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. The amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. We have one more dash board from mike santoli. Im sending it over to you for it. Well you say maybe you are a Value Investor, contrarian liking to buy discarded assets did can you summon the nefb to buy betten up energy stocks. Can you buy the oil and Gas Exploration etf . This is over two years obviously its not been a great story for any of this. But crude clearly outperformed the exploration stocks in particular very cleardown trend i think this is part of the lesson of being a deep Value Investor you have to buy stuff where the negative case is very prominent. The negative case here being a lid on the Commodity Prices probably because of all the supply they are not producing great cash flows right now maybe there is a longterm secular threat to fossil fuels all the rest but they are looking cheap and washed out for the nerve. Im summons the nerve to say you are going with the dare devil risk take willing theme. The theme absolutely the border line between healthiy risk taking and recklessness, thats the theme. Thank you very much. Up next we break down the key things every investor needs to watch heading into a fresh adg ektrinwe at record highs, when we come back. For farmers here, this is our lifes work. But when a recall happens, perfectly good food goes to waste. Now, weve got away around that. Looks good. 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Everywhere. Everywhere. Everywhere. Looking ahead to next woke alibaba singles day is on monday and dedra bossa has a preview what to expect dee. Maybe weve lost dee there which will of that time of the year again alibaba shopping extravaganza bigger than black friday and cybermonday combined kicking off monday with a taylor swift concert. Singles day last year brought in 30 billion in sales for alibaba. This year the number expected to get bigger and see more participation from u. S. Reretailers this years holiday comes at a pivot almoment jack ma stepped down in september and the company is looking to race up to 15 billion through the hong kong listing as early as this month back to you. Deedra thank you. Cramer huss a big show tonight on mad money. Amazing show. We got to keep it going. And we will drop at the u. S. Air force academy at 6 00. Jim cramer salute to service. A very special veterans day edition of mad money starting tonight at 6 00 p. M. Eastern mike, final thoughts record closes of course for all three of the indices one snap shot we didnt discuss earlier, worst performance around the week. Nikkei s p up less than 2 zbloop a feature for a while since the august lows the rest of the world outperforming the u. S. The rest of the people looking at that dynamic thats more more pfgt than negative because its more about the potential recovery in the Global Economy as opposed to people hiding in the u. S. Markets its the cyclical trade animating u. S. Stocks as well. As we start to have fewer earnings reports now. Yeah. We have broken the back of earning season comfortable is that a worry for the market or a positive. I think its been a positive. The reactions have been positive it leaves the market in the realm of subject to some of the headlines but also just to how far is this rally coming in a short period of time the sentiment may get too busy you have seen the market slowdown and flatten out in the last few days. That may be a breather fast money is next. And then jims veterans day special of course, mad money at 6 00 p. M. We are out of time have a great weekend. Thanks for watching closing bell. Fast money begins right now. Live from the Nasdaq Market site overlook new york city times square this is fast money. Im mella lee. Our traders on the desk steve grasso brian kelly pb dan nathan and guy adami. Tonight lion gate vice chairman Michael Burns breaks down the company and streaming wars a big week for bonds and the chart master has one chart that he says could be a perfect buying opportunity and later well reveal todays mystery chart down more than 4 this week. Hmm . Bk has hope for it yet well find out why he is optimistic but beginning with earning season things may wind down but for retail heatin