Transcripts For CNBC Closing Bell 20240713

Some fears over china trade. Retail sails topped expectations in october, climbing by 0. 3 and oil pointed to surging Global Demand in the quarter. Joining us is lindsey bell thanks for joining us. Good afternoon. We mentioned on track for three record alltime closing highs at the moment and also on track for the sixth week in a row of gains for the s p thats a remarkable run. It is absolutely a remarkable run and theres a few things that have gotten us here we have more clarity on the fed. Theyve cut for the third time and theyre willing to maintain the stance where they are right now, keeping rates where they are. The Third Quarter earnings season was very good and weve seen an easing of trade tensions while theres a little bit of uncertainty there, that could rattle the markets going into the end of the year. All things understood, the economic environment though does still feel pretty good. Lets focus on the big stories we are watching today. Kayla has details on those china trade headlines. Elon has new information on twitters political ad policy. And bertha is watching Health Care Stocks. Morgan, u. S. And chinese principals were expected to continue negotiations. No update from the trade representative treasury or the white house on that but as of the end of this week the eve of what was supposed to be the apex summit has now come and has no deal to show for it despite suggesting the two sides were still working towards this weekend as a deadline. White house economic adviser larry kudlow claims theres been no delay but he also wont predict when or by whom the deal will be signed i dont want to put i dont want to hang any numbers on anything. I dont want to hang any numbers on days, dates, days of the week i dont want to put any numbers. You know, the two leaders may be able to put together a signing ceremony both leaders have said from time to time their top ministers could do it. President trump has tweeted frequently that he and president xi will be the closers of this deal and will sign it. Larry kudlow and commerce secretary wilbur ross both in the last 24 hours saying the two sides are close, although we have heard that before. If the market is indeed up at fresh records as it is today because of Larry Kudlows comments, its a little surprising because did we learn anything new compared to his interview on closing bell earlier in the week, anything new and concrete at least . No but the semantics are slightly different the vocabulary is slightly different. Last night after a council on Foreign Relations event he said that the two sides are down to the short strokes, so that is certainly a phrase that he hasnt used before so perhaps we could treat that as new information. Then again some optimism from commerce secretary wilbur ross this morning ahead of a headline to grant temporary licenses or renew temporary licenses for businesses that do business with huawei, so there could be some movement in the next few days, but for those of us who have been following this for years at this point, it certainly doesnt feel like much of a breakthrough waiting in the wings. Hes making good use of his th thesaurus. The dow just 20 points from 28,000 twitter on valg new details about its political ad policy today and elon join us with more in washington on that. Twitter is rolling out its rules for banning political ads on its platform. Obviously that ban is going to apply to ads that are bought directly by candidates, Political Parties and elected officials, but it will also apply to ads that reference political content including appealing for votes and solicitations of financial support. Now, there is a big gray area around issue ads twitter is not banning those its just restricting them twitter will no longer allow targeting of issue ads using zip codes or using key words that are negotiated with political content like conservative or liberal. Guys, twitter said this new ad policy will take effect on november 22 and is not expected to have Material Impact on q4 guidance. Whether its twitter banning or putting tight guidelines on politicalrelated ads or the stance that facebook has taken, is there an impact, is there an effect that investors should be aware of because so far the stocks have for the most part rallied. I think that these companies are still getting ad revenue from other places. This is probably a very small portion of their total ad revenue so i dont think its something they should worry about. Its nice though to see that they are taking a stance on this though and really trying to create clean waters for the political environment that were about to get into in the next Year Health Care stocks on the move this afternoon following a speech from President Trump on new price Disclosure Rules bertha has the details for us. The Trump Administrations new transparency rules would require hospitals to publish patient prices for procedures starting in 2021 investors though shrugged off the headlines, sending the Health Care Sector to new alltime highs a case of not as bad as feared four Major Hospital associations vowed to take legal action hospital stocks moved higher during the president s announcement policy experts note that the penalty for noncompliance is just 300 a day which is not a huge revenue hit for Major Health Systems harder for Smaller Health systems. Health insurers rose as they contended that disclosing their negotiated rates would make it harder to drive a hard bargain with Hospitals Health insurers are up for the seventh straight week. In a sense i think the fear factor on all this regulation has broken, at least for now, with investors some positive moves there, relief moves i guess you could call them. Thank you, well see you later in the hour. We have got just 54 minutes 53 minutes left in the session. The dow is high by 200 points following optimistic trade headlines kayla was discussing, were set for record close Bridgewater Associates found ray dal yoe wayed in at the National Committee on u. S. china relations yesterday. Theres a trade war theres a Technology War there is a geopolitical war, and there could be capital wars. That is the nature of the environment, and how thats approached is going to determine what our futures are like. For more lets bring in larry adam from Raymond James and John Rutledge very good afternoon to you both. Good afternoon. John, you think a trade deal is coming, is that right i think both of these guys need a trade deal. Trumps got an election in a year hes got a softening growth economy. Youve got impeachment hearings, and he needs a win and the win would be signing a trade deal and sending the stock market up some more. Larry, is ray dalio right to think this war is going to be multitiered and its going to extend to other areas Like Technology and capital regardless of what happens short term with ag purchases and other trade deficit related things i absolutely agree. Ray is spot on what weve been telling clients is if you think about this phase one trade deal, while we think that will get done and its very important because it will show some progress and it will serve as a catalyst for the equity markets, the Bigger Picture is what hes talking about and there is not only an economic but also a military technology and Financial Market type of relationship that we need to work out with them i think whats important is that this is going to be around for years to come and if one thing has come from this trade war its that we have to have a cordial working relationship with china because theres really no winners when you have these wars and that was starting to happen with the trade and now that weve got some progress, hopefully well be able to avert those worst case scenarios. Is this potentially though, the phase one part of this deal, given that we are at record highs and we have had six weeks in a row of gains since that Oval Office Meeting where close to phase one sentiment emerged the fact that the market is up 4 in a little over a month, that was a pretty big move swiftly on the back of that news i think the market is expecting that december 15th tariff hike to get pushed out further. I dont know that theyre really expecting tariffs to absolutely come off near term but i think just a continuation of the easing of tensions would bode well for the market but unless you get more definitive or clarity about what the next steps are, its going to be hard to move significantly higher. John, this is very nuanced when you talk about these trade talks and you can make the argument that President Trump has been under pressure in the u. S. Given the fact that were coming into the 2020 election but theres been pressure in she china on xi, right yes, theres a group in china too called the shanghai gang and theyve been arguing for protecting chinese sovereignty, et cetera, so what xi needs is face and sovereignty protection. Thats secret code for hong kong they both need a deal to be done interesting to me is xi has been holding hostage the location of a signing and the personnel of a signing because if you could sign a little bill in iowa, it would be a big help in the elections and the chinese guys know that. Now, on your bigger point, it is definitely clear the rest of the world is figuring out theres going to be two sheriffs in town and theyre no longer going to line up with just one of them. At the davos in the desert meetings where ray dalio and i were both there, there were 6,000 people the prominent groups were china, india and russia they are now looking at a new version of the u. S. Russia split from years ago. And youre seeing that, john, start to play out actually in arms deals right now, right . You see it with turkey, with egypt, the fact that u. S. Lawmakers are now being put in a position where they may have to level sanctions against some of these long held allies listening to comments on though, i wonder do you think this trade war, the enactment of tariffs, this idea of trying to level the Playing Field if you will around things like ip protection, do you think were too far gone, that its irreversible, the point that were at . Some of this trade deal has been in the works for a long time buy more soy beans and protect my ip has been happening in china for the last year, including a new law in a new court in beijing to protect ip and its because they want it, not because were forcing them to do it some of the other things our guys said they want theyll never get, give up on industrial policy, give up on subsidizing stateowned companies which is by the way the welfare system in china, and give up on the tech drive through the one belt, one road program thats chinas foreign policy. Think about a tiny rabbit to pull out of a hat, they can get that done and that will do some amount of good and maybe push back the tariffs as we heard. Larry, switching focus to domestic politics, impeachment proceedings and the election next year, are they a threat to the markets . As of right now i dont really think so. I think if you look at the markets, theres an 80 chance that trump President Trump does get impeached by the house but theres still less than a 20 chance that he gets convicted in the senate. As long as that continues to be the base case, i dont think it poses a big threat to the markets right now. I just wanted to come back to another domestic issue todays data, retail sales good but some disappointing industrial production. Does that continue, consumers strong but the rest of the u. S. Economy perhaps a little bit of weakness i think so and i think were going into the Holiday Spending season and its going to be a strong one consumers might even have a little more money in their pocket as theyve been given the ability to refinance their auto mortgages or loans the good news is the fact that were getting mixed data means that were remaining in this goldie locks economy which pleases investors because that means the fed is not going to turn hawkish all of a sudden they may be moving a little bit away from being dovish but as long as theyre not hiking rates the market is going to be happen. Do you think gdp is too low yeah. I think we could possibly see that move higher its still early on. Larry and john, thanks for joining us. My pleasure. Thank you we are on record close watch for all three of the major averages after the break, Mike Santelli will break down the record run for the s p 500 and how major trade milestones and setbacks have impacted the index in the past. Plus apple hitting new highs this week and jpmorgan says one overlooked factor could signal even more upside ahead thats coming up in todays aymaeton st with us comes easily. Thats what happens in golf and in life. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. I athere was a sports carre and a family saloon car and i always had in my mind that one day the family car could compete in rallies and racing when the mini actually came out i said this is the one to do it. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. 43 minutes left until the close. Major averages at record highs heading into the close lets get a check on individual market movers. Shares of far fetch are soaring today. The tech platform for Luxury Fashion saw revenue grow nearly 90 year over year and that stock is up almost 30 Applied Materials is also higher after an earnings and revenue beat the company saw better sales across all segments and highlighted an uptick in chip demand that stock is also up about 8. 5 today. 42 minutes left to trade. Set for record closes on all three major averages lets get to the market dashboard. Heres what we have for you the 3 threshold, right now, the s p 500 is about 3 above its prior peak the 1 is in charge not of society but of the s p the 4 fillip is the pace of nominal retail sales growth, and then the 2 Tipping Point is around a level of Corporate Bond spreads that i want to keep an eye on so 3 threshold right now, s p 500 at 3116. For a couple of weeks now, after we started making new highs, i was starting to point out the 3115 level would represent a 3 bump above the previous high from july right here which is about 3025 theres nothing particularly magical about the 3 number except these prior peaks since january of 2018 have not gotten as far as 3 above the prior one so essentially this is a greater force behind this move in terms of getting a little bit of distance i would also point out, each of these peaks was associated with an escalation of the trade war, the president s davos speech right horror, the mike pence talking about a cold war with china. Each one of those at least in the general zone of when trade went from being a Friendly Force to a hostile one not predicting anything like that because i dont think this rally today is about the hope for a trade deal but clearly when the markets stretch like this it wouldnt take kindly to having a reescalation of those tensions mike, i know youre insanely smart but you know it goes 1, 2, 3, 4. Thats why i have figured out the pattern here and you have to try to decipher it. Oh gosh, youre too smart for us, as i should have expected. Thats a teaser. You have an hour and 40 minutes. Well do our best i have an unbelievable track record of almost never coming up with a theme mike, thank you. Back to the discussion point, lindsey, the record highs, because its taken us so long to really progress meaningfully higher again from the first time we reached that, does that make this less scary, less questionable that were pushing higher again the problem is, to mikes point, the one big risk that remains out there is this trade issue because theres no real clarity or timeline or path to an end state so i think that is still a big uncertainty and we know President Trump with really when the market is going up he feels confident and he can sometimes use that to put pressure on china which in turn makes the deals or the talks or the negotiations fall apart and that hurts the market. Its going to be one to watch. We have 40 minutes left to go here before the bell the dow is currently up 197 points, just a little over 20 points from 28k. The s p is trading at a record high up next though, shares of grub hub have lost half of their value this year but one firm just gave the stock a rare double upgrade well tell you why. Later, the bad blood between taylor swift and Scooter Braun reaching new heights she says shes been subjected to tyrannical control over her music. Well discuss it with charle koppelman coming up here on closing bell. S in the cloud, h . 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. So wim searching for info on options trading, and look, it feels like im just wasting time. Wasted time is wasted opportunity. Exactly. Thats why Td Ameritrade designed a firstofitskind, personalized education center. See, you just oh, this is easy. Yeah, and thats oh, just what i need. 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What youre made of, were made for. Usaa welcome back to closing bell. Time to get the word on the street grub hub going from underweight to overweight, stating that their decline has been due to an irrational type escape and poor execution but that a turnaround is still possible. A note on uber and how they think that stock could double in 2020. The firm stating that they think uber is one major announcement away from a positive narrative change and that buying now will produce outsized returns for those willing to take the extreme risk jpmorgan adding lyft to its list of top picks, the firm commenting they believe that the companys ride share business is likely to be profitable well before estimates and you can see that stock is actually bouncing today, about 2. 5 . Lints lindsey, your thoughts on ride share. On names like lyft, its pretty incredible how much lyft and uber have sold off since going public. Investor sentiment around these names is very negative short interesti is high which makes you think maybe it is a good time to get in because theyre both down so significantly. Facebook was down 50 after its ipo and look where it is today maybe these guys can turn it around but i dont see the fundamentals improving near term going into the end of the year this is going to be an easy stock for investors to use for tax loss harvesting reasons. I think for sentiment to turn, investors have been laser focused on profitability of Companies Like this and we really need to see a projectile timeline to really understand when these companies are going to be profitable and how theyre going to get there. Theres an interestingtheme that both these sets of notes shares which is the only part of profitability is when you get a rationale price behavior between these companies. Weve seen signs of that, albeit, the valuations seam extreme. For grub hub, theres more complicated threats from the likes of amazon and walmart in a related space and you feel like it hasnt gone through its peak of competition to then settle down. I think youre spot on with that analysis there. I think too when you think about uber and lyft, they are each others competition so the question becomes a question of volume if they do become more rational on price. Whats it going to do to volume. Of course uber and grub hub are also competing as well yeah. Very interconnected here. Weve got 33 minutes left of trade, heading for three record alltime closes. Coming up, your last chance trade and thought of the day. Plus, what do all of these stocks have in common . Back in 2010 they were the biggest upside contributors to the s p 500. After the break, Mike Santelli looks at how that has changed leading the charge this year. Heres a check on bonds. Yields ticker higher as stocks rally but the tenyear seeing a sizable drop for the week. 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Get your info kit now we have breaking news on we work breaking news here. John ledger, t mobile ceo, will not be the next ceo of we work sources telling me this afternoon that ledger is not considering that job or any other job for that matter right now. We had reported earlier in the week after the wall street journal originally reported that he was a candidate for the we work ceo job, so hearing today he wont be taking that is probably a good thing for ledger and t mobile that he is not from a conflict of interest reason as t mobile and sprint are trying to merge so it could have potentially been a sticky situation there if he had jumped ship to become the ceo of a company that was controlled by soft bank when he was trying to merge his Current Company which is also merging with a Company Controlled by soft bank. So thats no longer a problem. Ledger will be staying put at t mobile. One of the other issues that we were discussing earlier this week or maybe it was last week on closing bell was that it would kind of be hard for we work to offer him a pay packet that could rival what hes getting at a company thats worth ten times what we work is, not to mention the potential upside if that deal gets over the line between sprint and t mobile, given the clear kind of pr issues we work would face if they paid him a fortune having laid people off. It felt like it was quite hard to get over the line. You may have heard that we work not exactly flush with cash these days. Oh really thats definitely a factor. You also have to remember that if, in fact, sprint and t mobile merge, that new company is going to be larger than what t mobile is today so yeah, that particular company would become a real threat to at t and verizon its possible if john ledger decides to stay there that he could get a much bigger package. His future is still to be determined but it wont be with we work. Alex, thanks so much for that t mobile stock moving up 2. 4 on that news. You can read more about it on cnbc. Com were less than a halfhour away from the close. We are on record close watch and here are the three things driving the action positive headlines from National Economic Council Director larry kudlow easing fears over china trade, retail sales topped expectations in october, and Health Care Stocks are moving higher following a speech from President Trump on price Disclosure Rules it is time now for a cnbc news update and we go to sue herera for that. Heres whats happening at this hour. Apple will ban vapgrelated apps from its app store it consists of store apps, games that let users regulating things like heating of vape pens. Maryland delegate Thomas Branch who represents the states 45th district filing paperwork to enter the race. He says this has always been a lifelong dream. Jane fonda continuing climate protests at the nations capital. She has been arrested four times and once spent a night in jail Bernie Ebbers exhibited in one of the largest corporate scandals in u. S. History is asking a judge to shorten his 25year prison sentence due to health problems. He has been in prison since 2006 his attorneys say he is legally blind and has several medical problems including a heart ailment. You are up to date thats the news update this hour back downtown to you sue, thank you very much. The House Permanent Select Committee on intelligence wrapping up an open hearing as part of the impeachment inquiry into President Trump that hearing with the former ambassador to ukraine, marie yovanovitch, lasted for about five hours and at times the testimony turned personal. Democrats said that she was the target of a Smear Campaign that was conducted by President Trumps associates and that led to her removal from her position over the spring. In my line of work, perhaps in your line of work as well, all we have is our reputation and so this has been a very painful period President Trump attacked yovanovitch several times today over twitter while she was testifying democrats said that amounted to witness intimidation but this afternoon President Trump defended his comments. Nobody has seen anything like it in the history of our country there has never been a disgrace like whats going on right now so you know what i have the right to speak. I have freedom of speech the work is not done for lawmakers here on capitol hill they are heading to another hearing, this time with a state Department Aid who said that he overheard trump talk about the investigations into hunter biden over the phone guys, that hearing will be held behind closed doors. Back over to you. Thanks for bringing us the latest lindsey, is there a point at which all of this impeachment drama that is playing out in the house, playing automatic with these testimonies, that it actually starts to royle or affect the markets here . Even if the house impeaches trump, the senate is controlled by the republicans so the market right now sees this as something thats not going to go through the question is how does it impact the 2020 election because i think the market also right now is expecting a trump reelection. So we could see more volatile times in the market as we get into 2020 and this becomes a broader issue in debates and things like that. 24 minutes left to go here. Were going to send it over to mike santoli. The 1 is in charge of the markets, just about 1 of s p 500 stocks have an outsized effect but thats also the case. Here are though the five stocks this year in the s p 500 that have had the greatest impact together on the s p 500s gains. These are not the five largest stocks in every case but the ones that are very large and have added a lot of market value and therefore got the s p where it is. All of them except for amazon have outperformed the s p and by a lot. The s p is up now a little more than 24 yeartodate but amazon is so big that just that 15 gain these together have contributed about 6 Percentage Points of that 24 gain in the s p 500 so about a quarter of the overall gain, five stocks. These 495 stocks have done the rest thats not necessarily a concern because its not truly a narrow market you have most stocks going up, the equal weighted of the s p also at a new record its essentially the essence of a market cap weighted index like the s p is when its kind of going up, certain stocks are going to be adding bulks and chunks of market value that are going to lift the overall index. Instead of like previous years where you had alphabet and netflix partaking in this as well, the socalled fang trade, do we need a new acronym now you can certainly generate an acronym but theres not really a theme. When you have jpmorgan in there, its difficult to unify these stocks as saying, the investors are only interested in one kind of company i just think its a matter of size plus performance gets you on this list mike, thanks so much for that weve got 22 minutes left of the session. We are on track for three record alltime closes for the dow, s p and nasdaq russell still missing out, about 1. 2 or so from its own record high up next, the last chance trade. Plus shares of the this Cannabis Company have fallen more than 50 over the past year today its fallen again after reporting quarterly results. Well reveal the stock and what is drivinghero cinup osing bell. At leaf blowers. You should be mad your neighbor always wants to hang out. 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A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Every day, our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Welcome back to the closing bell. Were set for three record alltime closes. There is todays sector heat map. You can see that Health Care Leads the charge quite significantly, a bit of a relief rally on President Trumps Health Care Policy announcement. Materials at the bottom, as are staples and discretionary in the red. Tech having a good day as well a little dire straits music while you talk lindsey, whats your last chance trade . Im looking at Home Builders and i know the industry is up 40 on a yeartodate basis. Thats a pretty good move, double what the s p 50 has done, but if you look at the Economic Data, whether its new home sales, starts, existing home sales, pending home sales, these numbers have been just moving higher throughout the year after about a two year hiatus, the prices for homes have been mixed but the fact that affordability have been improved so much with the fed cutting rates three times, it takes a little while for that lagged effort to come into the market and i think these guys can continue through 2020 to do very well youve got homeownership ticking up in the Third Quarter. Even if were seeing the long end of the curve inflated a little bit yeah. I think by historic standards, Interest Rates are still very low and new home buyers, this is a perfect market for them. Do you think well see them get into the lower end of the market, theres an issue they havent been building enough homes. You can buy a home on amazon now for 1,000 or whatever it is. Incredible. I think that thats an area that theres a lot of demand we got 17 minutes before the bell we are on record close watch for the dow, the s p and the nasdaq. Still to come, uninterrupted coverage of the final minutes of trade. Well take you inside the market zone next. Later, taylor swifts got bad blood with two music executives now the pop star is claiming weve used that bad blood reference a lot. But its so good. Shes left hand blocked from performing her greatest hits on stage. Well bring you the details and reaction from famed music producer Charles Koppelman well ask him if he likes that song closing bell back in a couple minus. Te it was sophies big day. By the way, shes the next mozart. 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. 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One of a few upgrades for apple and even though apple is up 38 in the past six months, 71 in the last three, jpmorgan says theres still room to run the reason why, well, potential upside from high margin services, saying apple could put a lot more ads into searches, growing ad revenue at a rate of 28 a year now, jpmorgan also has an optimistic take on apples new streaming service, apple tv plus, which i thihas 100 millio subscribsu subscribers in just four years jpmorgan projects Services Revenue will grow 17 in fiscal 2020 thats a point better than the previous target, guys. John, its pretty incredible. Shares of apple are up 68 yeartodate and jpmorgan put this note out today but they werent the only ones upgrading. The fact that wall street seems to be getting bullish here, whats the readthrough i dont know that theres that much except that so many people are used to pessimism ahead of a big iphone launch and the iphone 11 launch has done better than expected and that was confirmed in the color that tim cook gave around the call talking about how theyre not really messing with inventories ahead of potential tariffs theyre doing business as usual. This is real demand that youre seeing showing up in these shipment numbers, so that is significant. I dont really like the yeartodate numbers as much because we have that big dip last september and then the rebound, but 38 , thats still pretty good. You can see that divot there i kind of ignore that when im looking at the run, but 38 still if youre looking at 12 months or six months thats still pretty good. John, thanks so much. Mike, we did get a downgrade on apple yesterday. Where is the community in general overall . Honestly, still pretty cautious i think theyre racing to catch up with the stock. In 2018 when the stock peaked, twothirds of analysts recommending a buy right now even though youve gotten a few net upgrades, only 58 of analysts have a buy with the stocks stretched as it is and a multiyear in valuation, when analysts come out kind of finding new businesses to throw out there as an excuse for why there could be further upside, maybe theyre thinking about that. 11 of total sales is only going to be like 3 . Its nothing for apple. Yeah. Amazon is also in focus today, planning to protest the pentagons decision to award microsoft its winner take all, saying, numerous aspects of the jedi evaluation process contain clear deficiencies, errors and unmistakable bias. The contest has been extremely controversial and a protest was expected by amazon which will take its fight to court on this. I think two things to keep in mind here. Were talking about dod contracting. Protests are pretty common i think that is very much the reason why it shouldnt be surprising to see amazon moving forward with this, especially given the fact that its been a very dramatic procurement process, but you see shares of microsoft up 1 today, shares of amazon down 1 i think overall the consensus is that its very, very hard to overturn a contract award like this certainly anything could happen, but in general this has been seen as much more of a positive for microsoft if you will, at least from an investor standpoint theres a lot of future federal government contracts out there where the cloud is concerned and so just the fact that microsoft is now has these bragging rights, really its an upset so they obviously proved themselves enough, whatever the makings of a decision were that they could do the job. Microsoft up 1 , amazon down 1 a judge in oklahoma issuing an order on how much Johnson Johnson owes. J j stock ticked. Remember they were ordered to pay 572 million the ruling was reduced last month to 465 million essentially due to a typo or a clerical error while the state was seeking the ability to replenish the fund until the crisis is solved, the judge today stubck to that number they had been seeking to have it reduced to reflect settlement payments and of course the company is are peeling the whole ruling meg, thank you. Mike, health care in general is kind of dominating the Market Action today. It is obviously this is kind of one off and a reminder that j j is fighting on multiple fronts but the move in health care was dramatic today and it showed you that people were looking for a little bit of an excuse to kind of call an all clear almost on the medicare for all thing when you had senator warren change her plan and United Health flying on that. That being said though, in 2020 health care is always a sector that really just underperforms going into a president ial Election Year so i think theres going to be a lot of that, especially, like you said, medicare for all is going to be a hot topic going into the primary. I think that health care is probably going to have a rough go at it weve got 7 or i guess a little less than 7 minutes left to go. Shares of Aurora Cannabis are down, sinking again today after reporting weak quarterly results. Aurora is down more than 17 after reporting a profit in Canadian Dollars and a 25 decline in overall revenues as well as a 33 drop in recreational sales aurora didnt have to write down inventory and claims they have the lowest cost of production at 85 cents per graham. Michael singer said on squawk alley the company is focused on the u. S. Market and has a partnership with nelson pelts to explore goods. Cantor fitzgerald raising its price target back to you. Thanks so much for that, mike we discussed that of course with canopy as well these guys have fallen significantly from previous highs. I really do think that one of the reasons it seems so dramatic is that the level of initial excitement about the opportunity got way out of hand and everybody just got mispriced given the size, the opportunity and the timing. It almost seems indicative of the Broader Market sentiment, Investor Sentiment were seeing right now, whether its cannabis stocks or some of these companies that have gone public that are growing revenue strongly but have no sign of profitability at least for the next couple of years thats kind of whats driving these names. They maybe got ahead of themselves or theyre in the private market or when they first went public and now youre seeing kind of this reckoning happening. Absolutely. I think investors are holding these companies and their management teams accountable to a clear path to profitability or top line growth. If youre going to get these big multiples, you got to prove that youre worth it. Shares of furniture retailer rh high today after they revealed a new stake in the company. Theyve added 1. 2 shares or 206. 3 million worth of stock to its portfolio at the end of q3 theyre up 7 today. We talked about this yesterday it doesnt feel like its the number one position in warrens portfolio. No. Its a 3. 5 billion company. It seems like a little bit of a one off. As a retailer, rh has performed better than many of the skeptics 245u9. Hard to get behind what exactly makes it a Berkshire Hathaway type investment in terms of being an enduring brand but clearly theyve executed very well. We were talking about Home Builders just a few moments ago. Is this another way to play the consumer and the strength that or i guess emerging strength weve been seeing in housing it could be but Restoration Hardware is a specific story because theyve been going through this turnaround process and reinventing themselves for them its a bit of a restructuring deal. Shares are up 7. 5 today. Mike has more though on the market internals overall today just take a look at your general up down breakdown for the new york stock exchange. It has been strong but not overwhelmingly so. Once again, its a little better than 3 to 1 up volume to down volume it confirms the fact that we have a decent rally going on here i think the levels make it seem like this rally is stronger than it is. Its more than half a percent. Look at the new highs and lows on the nasdaq and i bring this up because theres been a high level of new 52week lows on the nasdaq you see 113 there. Nasdaq has never traded this high, 100 out of the 3,000 stocks in the nasdaq making new lows itsconspicuous. Its doing exactly what you expect it to do which is hit another low around 12. We did get to 11 in the dead of summer but this confirms that we have a very steady market until the market proves its going to falter, thats going to stay low. We have another little leg up in the market such that we are at session highs three record alltime closes in sight with two minutes left. Lets get to rick for a check on bonds. Everybodys watching the dow to see if we hit 28,000 while were on the air when it comes to treasuries and Interest Rates globally, they all behave exactly the same, except different scale lets look at how we finished the week in the u. S. , sliding to the lows in the week in a noneventful trade. Look at guilts in the u. K. Sliding as well. If we look at the french oat, same scenario. Gdp around the world coming down, the u. S. Up 3 10 with regard to gdp. The nasdaq is going to blow out the old highs by 50 points. Its this large cap driven rally here youve got alphabet at an alltime high today, one of more than half a dozen large caps today hitting historic highs alphabet also going to the high court as google and oracles patent dispute is taken up by the court. Applied materials is one of three chip Equipment Companies that are hitting alltime highs. They have really been hitting it out of the park, certainly strong earnings. They got an upgrade today. Biotech not quite there but on pace, its seventh straight week of gains health care very much back in vogue. Historic high for health care retail a good day on the retail sales report jp penny is on the upside but how low are the expectations Comp Store Sales down 6. 6 , awful but better than expected were closing the week out with fractional gains in the s p 500. Were up for the week here low volume though and as you heard from mike, low volatility. Theres the closing bell right at the highs for the day the dow jones up 212 points, helped by tech and health care we did it, 28,000. Welcome to closing bell. Along with mike santoli. Lets check inwhere we finished three record alltime closing highs and the dow above 28,000 for the first time ever. S p up 0. 8 . A nice rally we close at session alltime highs. The nasdaq up 0. 7 the russell about a percent away from its own record alltime high. Fourth straight week of gains for the dow, sixth for the s p and seventh straight week of gains for the nasdaq joining us to talk about the market day, marian mon taken, Portfolio Manager at gradient investments, and lindsey bell, chief investment strategist at ally invest. Welcome to you both. Mike, ill start with you. The rally we did see. We certainly did and pretty impressive t yesterd impressive yesterday we said the market was sideways was that because it was tired or resting . It seems like it was resting its looking like a pretty decisive breakout from this very long term sideways range the question now is, the market is betting that weve seen global growth. The fed probably stuck to the landing. Rates are still low. Liquidity is high and Credit Conditions are great therefore, the year end chase is on and maybe its going to carry into next year you have to be betting against the charts and that whole rationale to say that this is a massive head fake. I dont think its a head fake but you have to be careful about short term how stretched weve gotten Trader Sentiment getting giddy so thats what you have to watch out for. Marian, i know that you still think weve got 10 upside so youre looking for 30,800 on the dow then yeah. 3400 on the s p. But we have had these consistent gains of the last six weeks across the markets and as was mentioned earlier, a little lighter on the volume side so we wouldnt be surprised if there was a pullback from here were kind of out of that trend line, above the trend line recently for that reason were using some buffered index etfs and the actual contracts along with some gold to provide some hedge on a pullback in the market we wouldnt be surprised if we got between here and the end of next year maybe a 7 or 8 pullback so weve got a little bit of a hedge in there lindsey, we still have these trade talks right now. We thought we were going to maybe get some head way or announcement today on them it kind of came and went the fact that we closed at highs going into the weekend, are you surprised . It feels good closing at highs going into the weekend but next week, monday brings a whole new week and a whole new set of Economic Data and other issues and retail earnings will be another thing well be watching next week. I think the 28,000 number is nice but mike, you know this better than anyone crossing that threshold is easy staying above it is a little more difficult i think were going to need to have more confidence about trade and the next steps Going Forward to really continue this move higher. We take health cares big jump out of this today this was tech Communication Services led, back to the sort of age old sectors. Treasury yields have stayed calm they havent pulled back too much from their highs because if they get below one and threequarters in the tenyear, youre going to say that wasnt really a genuine move higher, but with yields this low and it really was an index led rally. The nasdaq, the s p and the dow were all up precisely 0. 61 . That does not come from investors deciding exactly which stock to buy and which one to sell and whose fundamentals are better its a rush to get equity exposure in the biggest, most liquid way democratic donor mark lazry, the latest wall street investor to issue a warning for the market about a potential Elizabeth Warren presidency. Heres what he said earlier today. I think if you have somebody like senator warren who ends up winning, whos just a nominee, forget winning the election, i think the market will start pricing that in and the probability of her winning, look, i think if shes president , the market is down 20, 30 . It is not good news and i think people are going to lose huge comments of money. Do you agree, 20 to 30 decline . You know, i couldnt say for sure but im just going to guess that a 20 hit would be the initial reaction and thats really based on the fact that this is not a pro Financial Freedom type of candidate. This is a socialist type of candidate who doesnt really have a plan for funding all these free things. I think what people fail to realize, what voters fail to realize is that 55 of all workers own stocks through their 401 k or because of their pension plan the stock market hit is going to hit them this entire economy is about 80 driven by the consumer thats going to hurt Consumer Confidence its going to hurt our economy yeah, i can see a 20 hit initially. Mike, i think that was one of the things that was raised in that discussion today. Its turned into this Elizabeth Warren versus the billionaires, but you do see Something Like stocks pull back with that kind of outcome of the election, what that means for the middle class. The stock market is going to sniff something out ahead of time and if theres any indication so far once its a general election youre going to have a much cleaner view of the potential implications in terms of both houses of congress and the rest of it we had a 20 decline in three months last year with no change in the president a 20 drop in the market can happen at any time everybody confidently thinking that the electoral result thats driven by the majority of the country is somehow going to cause an immediate drop in the market, i would take the other side of it being that exact cadence of decline, unless in fact were headed for a recession and go into one. Which everybody said if trump won the spresidency we would se a major the market went up straight 40 . It was a big day for stocks the dow closing at 28,000. Lets look at the weeks biggest movers. This all happened so fast, 28,000, we just barely had thank you, peter, our dow 28,000 hats we just barely had it in here. Remember, analyst optimism very high, retail optimism very high. A little frothy right now. The sectors that mattered, health care, an historic high despite the president s comments about controlling hospital costs, a new high for health care, new highs utilities up 1. 4 theres the xlv, historic high for them transports fell back from their highs. A lot they fell back due to declines on wednesday and thursday. Energy stocks were a bit on the weak side. We had oil fluctuating the important thing, banks, when you get the yields of course moving to the down side in the middle of the weeks we had wednesday and thursday, they underperformed a little bit for the week overall, you get that big move up in the tech stocks and health care, thats enough for new highs. Guys, back to you. Lindsey, which sector bob, thank you very much. Which sector stands out for you now in terms of still having a bit of value i think whats interesting is the move in tech because for a couple weeks there it did get kind of weak but its bouncing back it almost seems like investors are going back to the old reliables, going back to growth names while value was doing well and you can see today health care did well. I think that tech is going to continue to be an area where you have to have your money. Its almost a quarter of the s p 500 and i think people continue to have faith in the sector, especially as we become a more digitally connected economy. As we hit these highs, do you get tempted to put money in overseas instead i am seeing some momentum going on in emerging markets and overseas but i dont say instead. I say and. Theres still pockets of the u. S. Markets that are attractive to us, small and mid caps being one of them. They didnt participate for the greater part of the gains this year and then health care is one of those rare defensive categories that havent done spectacularly well this year and so Fourth Quarter people tend to move to something more defensive and i think health care looks attractive in here if you marry the two of the small and mid cap group plus the health care, theres an equal weighted etf for that and so you can participate in that smaller end of things and the mid caps within the Health Care Sector. Well leave it there, guys. Thanks so much for joining us. Thank you. Still to come, energy one of the worst performing sectors during the week. Well break down the ieas Energy Report for 2020 with Goldman Sachss head of energy and discuss where there may be opportunities in that space. Closing bell back in 90 seconds. Driverless cars, or trips to mars. No commission. Delivery drones, or the latest phones. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. So servicenow put your workflows immhm. Cloud, huh . 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. Welcome back 20,004. 89, a record alltime close for the dow jones. First close of course above 28,000 as shown by bobs hat moments ago. Record alltime closing highs for the s p and nasdaq, also six weeks in a row of gains for the s p 500. The iea is out with a report today raising its 2020 Oil Production growth estimates for countries out of opec and highlighting that the u. S. Is set to be the key driver of growth despite calls for more supply also highlighted increasing demand in the Third Quarter. Joining us now to discuss, head of energy at goldman sachs, welcome to the set thank you why did crude rally today is it trade hopes or actually the iea report that we saw the report in itself actually was positive in that it didnt reduce demand estimates further. Its the first time in several months that we dont have another downgrade of demand. There are a few Silver Linings i think thats probably the first driver i think what were seeing as well on the supply side is despite this higher estimate of global supply, the u. S. Sector continues to show signs of slowdown the rate count today fell again so i think we have to put into context and what the agency showed and what the opec showed, the market is likely balanced next year. What does that mean though for u. S. Producers and i ask that because you mentioned the rate count. Lowest count since april 2017 now. I think the key takeaway is we reach a price point where u. S. Producers are slowing down sufficiently its the capital markets, the equity markets, the debt markets, and the combination of oil prices here that is leading to the slowdown. Now, the key question is, is it too much of a slowdown relative to fundamentals and our view is the market will be balanced next year fundamentals are relatively benign for next year you have this slowdown in shale but shale is still growing so the price action of the last five, six months, 60, in our view is what will translate for the next 12 months. What about longer term, is there a risk that they underpriced the u. S. Commitment to its allies in the middle east supply disruptions have declined saudi issue have been resolved theres a detente currently between saudi, iran and yemen. The key though is nothing has really been resolved on that front. In iran today they just increased gasoline prices by 50 , exports fall and enrichment continues. In iraq you have social unrest so issues of course can creep up again and escalation can happen. The one caveat is if the world was worried about demand and sees plenty of supply next year its hard to price this risk premium for a potential other shock. When you talk about crude being balanced going into 2020, what does that mean in terms of pricing . Our forecast is 60, exactly where weve been the last five months the balance suggests a balanced market whats key for investors is you can still generate more than 10 return the key is when you invest in oil youre not investing in the spot if you buy an etf youre not buying physical oil. Youre investing in futures that you have to roll every month thats why the shape of the curve is so key. I think fixed income investors, they look at curve sheet. Are you talking tango take an example like today. The spot is 63 next month the curve is pricing 62 youre big a 62, rolling up to 63, youre making that dollar every month. The spot doesnt move, youve accrued 12. Youre up nearly 20 on the year thats the key really for next year there are three conditions that have to be met to get that the market has to be balanced. Thats what all the agencies are showing. Second, you have to be at cost support. The big failure last year is we were at 80. Demand was falling producers were ramping up. Today thats not the case. Were seeing a slowdown in activity third, producers have to continue hedging, creating that pressure on the back end all those ingredients are met. Think about dividend and yield on the Big Oil Companies its 5 . Think about even the ruble in emerging market is 4 . Oil right now delivers a 17 carry. I think thats quite compelling as a return opportunity, but again its from the curve shape. You dont have to be Bullish Oil Prices to get it. Thanks for joining us. Thank you. Big Consumer Products company just filed to go company and frank has the details. Reynolds Consumer Products just announcing its filing for an ipo theyre makers of aluminum wrap. When the Company Begins trading it will trade on the nasdaq. We dont know exactly when that will be. Back over to you aluminum rap called tin foil. We call it tin foil here too. You know its made of aluminum. All sorts of translations frank, thank you. Up next, well break down the charts to see whether this years Consumer Spending surge will lead to a strong Holiday Shopping season. Plus, taylor swift is involved in a music melee with the producers who own the rights to her old music former Music Publishing plecutive Charles Koppelman will exain whats behind this fight later on closing bell. A more secure diaper closure. There were babies involved. And they werent saying much. Thats what we do at 3m, we listen to people, even those who dont have a voice. We are people helping people. A record alltime close for the dow finishing above 28,000 for the first time ever, 28,004, that was the level we closed at today, finishing out the week, fourth straight week of gains for the dow and record closes for the s p and nasdaq. Lets send it over to mike for the third installment of todays dashboard. 4 fillip or boost to the economy. Retail Sales Numbers kind of mixed, not universally a great number relative to expectations. If you look at a longer term chart of nominal realty sales excluding gasoline so this is kind of a core retail sales and restaurant sales number, it really does show some consistency around that 4 nominal level. Its not deviating much although a couple things are norteworthy one is this spike late last year as we got the stock market meltdown, Government Shutdown as well as going against very strong comparisons from the year before thats something you have to keep in mind i think right now this is holding in fine. You wouldnt necessarily say that its going to be powering the economy higher we all know the consumer is very important but the longer term trend show you youre kind of clear of any consumer retrenchment, at least at the moment. Mike, thank you. Still ahead, Health Care Stocks rallying after President Trump introduced new rules for hospital pricing transparency. Well discuss which stocks could be the big winners straight ahead. Plus find out what to expect from next weeks flood of retail earnings coming up imagine a disease is caused by too much of a bad protein, but a Company Develops a way to actually attack it. What drew me to Capital Allocation in Health Sciences was the potential to help many people through investments that help fund medical innovation. My team and i often choose to invest at the very early stages of human trials. Investing lets me use everything ive learned as a doctor to help make a positive impact. So thats why i go beyond the numbers. vo the flock blindly flying south for the winter. They never stray from their predetermined path. But this season, a more thrilling journey is calling. Defy the laws of human nature. At the season of audi sales event. Vand im not gonna be around. E 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, invest and 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. Welcome back its time for a cnbc news update sue herrera has it for us. Heres whats happening. New efforts to crack down on robocalls in michigan, 1. 3 billion have been reported across the state this year attorney general dana nestle announcing a plan to help fight those calls. We are strengthening our enforcement of these crimes using existing michigan laws and tools including established monitored phone lines in our office that will be staffed by skilled investigators to target the illegal robocallers that are spamming our state residents kenmore is calling some of its elite microwave ovens. The 1,000 watt counter top convection microwaves, sold exclusively at sears, have the incorrect wiring so the exterior surface could get hotter than 183 degrees and that poses a burn hazard. The Worlds Largest starbucks is now open. Hundreds of people waiting outside the new fivestory starbucks on chicagos Michigan Avenue this morning. Incidentally, chicago was the first city that starbucks expanded to outside of seattle back in 1987 thats the news update this hour guys, have a great weekend morgan, back to you. Five stories, thats crazy. Its wonderful. Are they small stories or are they 35,000 square feet. I dont know how big each particular story is, but its an extremely popular part of Michigan Avenue, so theyre going to get a lot of traffic. And a lot of coffee. Im sure the cold weather weve been seeing only helps the case. Totally. The hot coffee over cold brews. Just to get inside out of the cold sue, thank you it was another fiery day of impeachment inquiry hearings on capitol hill and ylan join us. Lawmakers are moving on to their second hearing of the day, this one behind closed doors theyre going to hear from david holmes, a state Department Aid who apparently overheard President Trump asking about the investigations during a phone call with the ambassador to the eu democrats appear to be trying to build a case around the issue of bribery. That could form the potential basis for future articles of impeachment. This is a story about an effort to coerce, condition or bribe a foreign country into doing the dirty work of the president. The fact that they failed in this solicitation of bribery doesnt make it any less bribery. Now, the committee will be meeting again tomorrow for another closed door session. Theyre meeting even on a saturday that shows you how serious they actually are, and there are eight more witnesses scheduled for public hearings next week. Guys, we will be here to cover it all back over to you ylan, have we seen any change in tone from key republicans not really. We hear them continuing to push the narrative that the witnesses that democrats are calling do not have firsthand knowledge of either the phone call between President Trump and president zelensky on july 25 and that they dont have firsthand knowledge of the relationship between the two. Republicans today also try to talk about the fact that this is distracting democrats from their legislative agenda they called several times on democrats to move forward to approve the u. S. Mexicocanada trade agreement instead of focusing on things like impeachment. Thanks so much for that the Trump Administration unveiling two new rules aimed at increasing transparency for health care costs. It would require hospitals and Insurance Companies to disclose more of their prices to consumers. Health care stocks rose today but the president said hospitals would not be pleased with the new regulations. Research has found that for the same mri at the same hospital patients were charged anywhere from 248 to 2,500, so ten times more at the same hospital i assume that would be different doctors within the same hospital i dont know if the hospitals are going to like me too much anymore with this but thats okay, right . Joining us to discuss, chris meekens, policy analyst. Good afternoon to you, chris thanks for joining us. Whats your key headline from what was announced today i think the key headline to me is that the administration wants to do something that will be very popular with the public. When i need to get new tires for my pickup truck, i can go into a tire shop and know exactly how much its going to cost. When i need to potentially get an elective surgery done, i have no way of knowing what the potential costs would be and what my out of pocket costs are. What theyre attempting to do is really bring some transparency to the Health Care System and i think that is a very laudable goal what worries me though is that congress may not have given the Administration Authority to go this far and so what we have seen is this administration has repeatedly attempted to do things that they believe are very popular with the public but then the courts say you dont have the authority to do that. I think thats why, if you look at hospital stocks and insurance stocks today, they went up in addition to other issues related to Elizabeth Warren. Yeah, chris, that was exactly the question i was just about to ask you. Anthem, humana, United Health are all up 5 right now which seems like a sizable move for these names. How much of this is tied to the unlikelihood that this actually gets fulfilled by the Trump Administration versus whats going on with Elizabeth Warrens campaign and medicare for all right now . Yeah, i think thats a great question what i believe looking at the numbers and in conversations ive had with investors throughout europe this week, though im normally based in d. C. , is that people really dont view the transparency initiatives as something they need to worry about because if you look at this administration they tried to take action to require pharmaceutical ads to have prices in them. The courts said that went too far. They tried to make site neutral payments for hospitals the court said that went too far. So the administration has proposed a lot of things but investors are at a position where theyre like, until something actually gets implemented and the courts say its okay, were largely speaking going to ignore what the administration is proposing which is why the big news today really was what Elizabeth Warren did. She basically completely backtracked from her medicare for all only position. She said instead of a bill has to have medicare for all if she were to be elected president , now shes saying she would take a twostep process, pass a public option which insurers are not worried about, and then maybe in year three of her presidency she would get to medicare for all these names which have really been held back because of the perceived threat of medicare for all from Elizabeth Warren are now off to the races and could continue that for the next weeks. Chris, thanks so much for joining us thanks. Still to come, former ceo Bernie Ebbers is seeking Early Release from prison after serving about half of his accounting fraud sentence. The details straight ahead. And taylor swift striking a chord of discord with the producers who own her old songs. Former Music Publishing executive Charles Koppelman explains whats behind the disharmony thats coming up later on closing bell. Filmgate is growing really staffing a small bquickly and. Is challenging. I needed to fill a production coordinator role. I was looking for someone with specific skills. So i posted a job on linkedin. Maribel had all the skills i was looking for. And looking at her profile. I saw shared connections. That was a plus. But the most important thing. Is the ability to connect to people and she had it. And i knew. She was the one. Post a job today at linkedin. Com grow welcome back former world com ceo berne eie ebbers is seeking Early Release from prison. A blast from the past, Bernie Ebbers presided over one of the biggest, most brazen corporate frauds in history, cooking the books at world com to the tune of 11 billion, at a time when the economy and the Tech Industry were fragile. A jury in new york convicted him on nine criminal counts in 2005 and judge Barbara Jones sentenced him effectively to life, 25 years hes due out with Good Behavior when hes 86 in 2028 today about 13 years into his sentence, he apparently bears little resemblance to the Telecom Cowboy that we saw in court all those weeks in 2005. According to new court filings, he is blind, has a serious heart condition and the former bouncer has withered to 160 pounds ebbers daughter says in a sworn declaration that her father, she spher fears, has only weeks to live. Even judge jones, now retired, says he has been punished enough but federal prosecutors in new york say the life sentence should stand theres a new judge in the case. Hear from victims and for more medical results. Theres no word yet on how soon she will rule. Guys scott, thanks so much for that up next, look what you made her do pop superstar taylor swift firing back, accusing two music executives of blocking her from performing her older music at the upcoming American Music awards well break it down with former Music Publishing executive Charles Koppelman. And coming up on fast money, one group of stocks thats the single biggest opportunity in the Broader Market right now thats at 5 00 p. M. Eastern time servicenow put our workflows in the cloud. This changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. 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. Im part of a community of problem solvers. We make ideas grow. From an everyday solution. To one that can take on a bigger challenge. We are solving problems that improve lives. Welcome back to closing bell. Pop superstar taylor swift is accusing music execs Scott Borchetta and Scooter Braun of, quote, exercising tyrannical control and blocking her from performing her music at the American Music awards. The battle between taylor swift and the two music moguls is heating up ahead of the music awards on november 24th where swift will win the artist of the deca decade taylor swift suitweeting, im n allowed to perform my old songs on television because they claim that would be rerecording my music before im allowed to next year swift asking for help from her fans and from the, quote, Carlisle Group who put up money for the sale of my music to these men. Big machine responding, quote, at no point did we say taylor could not perform on the amas or block her netflix special. In fact, we do not have the right to keep her from performing live anywhere swift was with the label, big machine, until 2017 when she signed with universal music. Back over to you thanks so much for that joining us now by phone, Charles Koppelman. Hes the ceo of c. A. K. Entertainment with fiveplus decades of experience in music and retail hes worked with legendary entertainers such as Michael Jackson, jennifer lopez, Barbara Streisand and many more and hes the former chairman of Martha Stewarts living onmni media. Thanks for joining us. My pleasure first question, big picture, what exactly is in dispute here . You have publishing rights, the original recordings. I think the last statement that was read where they backed off the fact that theyre going to prohibit it, they dont really have the right to prohibit her singing the song on the American Music awards. The music publisher always has a right but she controls that so there is no issue there. Theyre trying to block her from singing on a show under the guise that its a rerecording of a master that they own its just not the case so i think they are wrong but i think i just heard you say that theyve backed off of that its pretty clear and its also not really a fight its a fight between a superstar who speaks for a generation and a Record Company that no longer has her under contract either way though next year, am i right in saying, charles, that she has the right to rerecord it anyway yes, i think its either a year or a year and a half that she has the right to rerecord all of her old songs its a dispute that makes no sense. Its only a years worth of disputes anyway . Yeah, but the Record Company really doesnt have a right to stop the singing of the song on television they dont even have to get permission to do that. The amas dont need permission from the Record Company. They do need permission from the music publisher which of course they get its also ridiculous because if she sings the songs on the ama, it only enhances big machines music that they already own. Charles, it definitely seems to be a bit of a nuanced and kind of shortterm battle thats playing out here is it kind of where all the money lies in the Music Industry and that is publishing so i guess how does this fit into that broader picture around publishing for a superstar like taylor swift, and how does it compare to other fights weve seen over the years . I think back to like Michael Jackson and Paul Mccartney for example, although that was more a publishing category that played out. Publishing has always been the real wealth of the music background its like real estate. You own a song to the exclusion of everyone else in the world and anybody that wants to use that song has to pay you today more than ever with streaming, with music being bigger than ever on a global basis, if youre the owner of the Music Publishing or the writer, youre making a lot of money. I would almost say that taylor swift probably makes as much money or has made as big machine has. So its not a david and goliath. Its a taylor and big machine. But i think theyve backed off it because actually they were wrong in insinuating that they could stop her from singing the song on the amas. Charles, what if you went to the Bigger Picture debate that could happen in this Music Industry that a Record Company that helps a star when theyre small and theyre starting out and gives them a good deal for the risk reward that theyre addressing in the early stages and then years later the star becomes just an absolute giant as would be the case clearly with taylor swift and then the star tries to exert their control, their power, their following to regain more of what they had previously agreed to, even if that deal might have been unfair in the first place, it was agreed to, is there any of that that applies here or not . Well, you noknow, its capitalism at its best years ago we signed Tracy Chapman and she was a sophomore at tufts university, no following whatsoever, signed her, put out her first cd. It sold gazillions we made a deal with her that for a new artist was a fair deal, and a few years later there was an issue that she didnt think she was getting paid enough. You always have the investment in a new artist that nobody really knows, that you have to spend a lot of money to get their music to be heard by the public, and then as time goes on memories fade and artists believe that they should own everything that they have, and maybe they should. After a period of time, they do. Taylor is a perfect example. Garth brooks owns all his masters. Michael jackson owned most of his publishing so its really its no different than in your business. I mean, a young newscaster gets his first job and hes successful, and 20 years later hes an anchor and demands a tremendous amount of money Charles Koppelman, thanks for joining us and putting it all in perspective. We appreciate your time. Any time. Thank you. Great to talk to you still ahead, were going inside the Luxury Real Estate market why the rich are now turning to rentals. Thats when closing bell returns. Does your broker offer more than just free trades . Fidelity has zero commissions for online u. S. Equity trades and etfs, plus zero minimums to open a brokerage account. With value like this, there are zero reasons to invest anywhere else. Fidelity. There are zero reasons to invest anywhere else. When i lost my sight, my biggest fear was losing my independence. Mmm. Good. So ive spent my life developing technology to help the visually impaired. We are so good. We built a guide that uses ibm watson. To help the blind. It is already working in cities like tokyo. My dream is to help millions more people like me. Welcome back lets send it to mike for the fiebl install maniment of the dash board. Call it the 2 Tipping Point. Look at the credit markets through the prism of triple b corporate rated debt on a day when the stock market is excited, rushing to new highs look at the credit markets to see if it confirms this is the spread between the triple b rated, the lowest Investment Grade class of corporate debt and treasury. When it goes down it means risk appetites ares rising. Markets stronger after the turn of the year after the stock market made the low in december of last year, that showed when the credit markets at risk of getting out of hand, meant a tantrum being thrown in credit look at the steady downtrend its supporting the idea that stocks should be high and the economy okay and cash flows in good shape the one thing im watching, the tiny turn up there and preceded by a couple more late april, late july. That coinciding with shortterm peak in stocks we may not get that right now. But if it continues high frere here it suggests that maybe risk is going to come off the a bit. Its nuts to see even back at the start of the year it was only a 2 spread anyway. If it went back to 2015 and 16 it was significantly higher. But youre right the absolute yield levels for triple b are 3. 25 . One notch above junk grade, incredible. Thank you. Inside the Luxury Real Estate market we discuss why even the rich are choosing to rent instead of buy. The key things to watch as we head into a new week, the look ahead. 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. With a nationleading 150 billion commitment to infrastructure, were creating state of the art, 21st century transportation hubs, constructing new bridges, bringing highspeed internet to every corner of the state, and committing to lowcost clean energy. With infrastructure built for the future, the companies of tomorrow can thrive here today. See your future at esd. Ny. Gov. Luxury real estate may be sinking in manhattan but luxury rentals are soaring. Robert franke has more on the story. Robert. Hey, morgan, the Luxury Real Estate market in manhattan and specifically rentals is soaring as more wealthy choose to rent rather than buy. Luxury prices at the very top of the rental market up 14 year to date that compares to luxury sales which are down 10 now this penthouse in tribeca up for rent for 123,000 a month. Its 6,000 square feet, 14foot windows and ceilings, on the 56th floor you get the amazing sunset has an Art Collection worth tens of millions of dollars thats included and the owners who bought this back in 2016 for about 30 million built it with the intent to rent. Theyve had a lot of offers. But none yet for the full year they want this to rent for a full year which would cost 1 the. 4 million to rent for the year back to you. Coming with tens of millions of dollars worth of art is somewhat grow tevfik i have to say. The sunset is gorgeous. The sunset is gorgeous. But robert, so 1. 4 million a can year would be the rental cost what would be the cost to buy . Im interested in the yield that youd be paying in terms of fuelyear rental. Well it was never put on the market it was purchased for just under 30 million in 2016. The market since then has fallen a little bit but theyve put millions into it to renovate and build it so my guess it if it were on the market today, which its not, well over 30 million. Youre looking at 30 million Purchase Price versus annual rental of 1. 4 million. But the orp has to pay maintenance fees this is a prominent building, probably expensive, plus all the taxes and the mortgage payments, et cetera. So actually even 123,000 a month is not that far above what the owner costs would be. Because if its so if it was worth over 30 million its like a year 4. 5 youre paying roughly. Correct. Nothing is cheap with this apartment. But it not that expensive. Right of course the carrying cost. Youre right, which will of, its bargain yeah. Awesome stuff, robert. Thank you. Thank you now Retail Earnings Take Center Stage next we can monday brings results from dillards and childrens place. Tuesday highlights include home depot tjx and kohls. Wednesday target, l brands and lazboy thursday macys gap, russell and nordstrom. And foot locker closes out the week on friday decent retail sales today see if it continues into the earnings. Another additional layer of red through on the consumer. Something else to keep an eye on next week closing bell launching a weeklong series called watch this space. Well sit down with some of the biggest names in the industry, the space industry get their take on where in space could be headed. Guys, an allstar lineup and certainly as we see more wall street money, Silicon Valley money flow into virjman galactic now publicly traded here. Its becoming a big are thing for investors to be focused on or at least thinking about putting money toward. Its a ee normds total addressable market. A trillion dollars. The coverage. But i mean just the whole universe. The coverage is out of this world, i think next week there we go on the puns. 25 seconds for por, come on. The countdown has begun for that. Wow, i think were at blast off. The countdown has begun to fast money for our viewers thankfully and a fresh bit of frg on friday ten seconds away lucky you. Everyone have a lovely weekend out of time that does it for closing bell. Happy friday and fast money begins right now live from the Nasdaq Market site overlooking new york city times square this is fast money. Already have a good time on the set. Yes. Im melissa leave traders on the desk. And joined by jeff mill chief investment offers at brid more trust. Health care stocks jumping as the president pushesfare Price Transparency in the industry why the sector could be the single best opportunity in the market the chart of the week. One whale making a splash betting on this name well tell but it. And time to blanc and chill on the cold novembe