Transcripts For CNBC Closing Bell 20240713

Confidence ticking lower in november though still largely positive. Joining us for the hour is mark tepper from Strategic Wealth partners mark, welcome. Thanks for having me. Even as i just went through those different points that are driving the action today, weve got records again for the dow and the s p, albeit just barely. Right, yes. I mean, all investors are pretty much still riskon and whats most surprising to me is you have this news coming out of china where china is potentiallily bay lbalking at ae deal, but were at a new alltime high. The market has shifted from one of economic deflation to policy reflation and thats typically good for stocks, right a low inflation, Slower Growth economy is good for stocks over the next six to nine months, now would not be a good time to be underweight equities. You want to be pathetics right now. Is the trade deal priced into this market . I think completely, almost fully priced in right now. I think weve seen quite the runup over the course of the last couple of months. I would think if you do not get a trade deal, the market is going to drop at least 10 lots to talk about with mark over the next hour but lets focus in on the big stories were watching today eunice yuan is covering the new china trade details from beijing. Mike santoli has the market dashboard, and Julia Boorstin has some of the highlights from his interview with snap ceo earlier today. Eunice, lets start with you reporter thanks so much, wilf sentiment appears to have turned pessimistic in beijing that a deal can be reached at least this year. A government source familiar with the trade talks told me that people were troubled after President Trump said about a week ago that there was november agreement on facing ophasing ou tariffs. That was a very important point for beijing. He said that the china side felt that there was an agreement, at least in principle now, people here are also unclear of President Trumps standing, because of the possible impeachment, as well as an election just a year away he said that the strategy now is to continue to negotiate, that china, in theory, does want to have some sort of trade deal, fit worif it works for them, but the focus needs to be more on us propping up the domestic economy. Wilf eunice, does china need to see the tariffs roll back before they sign any piece of paper, whether its just phase i or more reporter yes that, ive heard now from a couple of different people, that the tariffs need to be rolled back or at least that there has to be some movement on the tariffs, because of the way it was explained to me that from the chinese perspective, this trade war began with tariffs and needs to end with a rollback of tariffs. Eunice, just one quick pivoting question, is president xi jinping under pressure because of whats going on in hong kong . Clearly we see a lot of escalating coverage of that over here, but is his own power position in beijing somewhat insulated . Or is he under pressure because of it . Reporter well, i think that hes under pressure, maybe from the international community, because there have been so many in the u. S. And the uk who have been outspoken, but in terms of whether or not he is going to give into that pressure, that looks very unlikely, because beijing feels strongly that hong kong is a part of china, and that no one outside of hong kong or china should be from, from chinas perspective, meddling in their internal affairs eunice, thanks so much. Great to see you, live 4 00 a. M. , it is in beijing thanks for joining us. Working around the clock. Lets turn it over to mike santoli for todays market dashboard. On the dashboard first today, untrodden ground thats where the market continues to walk right now. Well try to suggest how long that can last in record territory. And then undisrupted champions this is a handful of elite consumer stocks that the market has really embraced right now. Unafraid for now, investor sentiment, a lot less scared than it was, and then underestimated no more thats been the economic furnumr are no longer being underestimated by economists untrodden ground take a look at a oneyear chart of the s p 500 were just before we kind of fell off that cliff last december it gives you a relatively clean before and after of this trend im going to attempt to draw a trend line here. Thats the upper trend line right there. And the lower one would be Something Like this, okay . So thats kind of the channel weve been traveling in right now. If you look at the upper end of this lane, this is where youve seen a couple of times, where youve had major pullbacks and youve kind of bump eed up agais that this is something thats evolving all the time. These lines didnt exist back here you had to connect the highs but what it does show, theres a little bit of a margin up there for the s p to go a bit higher from here before it tests this kind of upper end of that range. You see some incredibly orderly, tight uptrend here in this last little bit now look at the valuation of the market it has really been pushed higher weve had flat earnings this year this is the forward price earnings multiple of the s p 500. What i want to point out is this bulge right here in 2017 that was essentially the market just front running the huge tax cut windfall that profits were going to see if you want to take a like on like, youre pretty much at the highs on this cycle. Well see if this ends up being a restraint. Of course, historically, we have been more expensive near this. So this is just for the current cycle, guys. Your theme is not unknown it was that it was that transparent, huh i didnt think i was fooling anybody, especially you, morgan. Oh, i know, morgan. Im catching on here mike santoli, thank you. Mark, your thoughts on the s p and market valuation right now theres no doubt that were in a pretty strong bull market so were seeing a lot of support right now in the 3025 range. So anything pullbacks. And i do think that consolidation is possible, because were shortterm overbought right now so it would make sense if we continue to see some issues with trade, markets could pull back like, pullbacks are buying opportunities. Anything around that 3025 range, you want to be getting in. Meantime, Morgan Stanley out with a note on their outlook for 2020, predicting u. S. Equities and Corporate Bonds will underperform their global peers and forecasting a weakening dollar for more, lets bring in adam parker, founder and ceo at triverate Capital Management thanks for joining us. Thanks for having me. Where do you stand on the outlook of the moment . Global growth, you feel, has kind of bottomed now i dont think you can call a market that easily you need corporate excess, hubris too much inventorying, i dont see the corporate behavior is that risk. I dont think you should by that negative corporate earnings, the sell side has 99 for next year lets say its 5 the market, is about 19 1 2 times next years numbers. That looks pretty reasonable in terms of bond at 18 and everywhere else looking unattractive fortunately, i dont make big market calls i think theres lots of opportunities to pick stocks underneath i dont see why anyone should be wholesale negative right now in terms of the data, theres a lot of talk about this idea that slowing Economic Growth, that we may be seeing a bottom in that process. Do you agree with that good news is good and bad news, weve got this backstop. I think its super hard to call those shortterm consolidations consistently so i would want to tell people that, you know, u. S. Equities look like a good place to invest your money better than overseas equities if you care about liquidity, yes. 77 of all stocks, and u. S. Equities at triverate, but its really hard to generate excess funds outside the u. S. In terms of liquidity take a listen to eunice yoon reporting the sentiment on the ground in china and certainly the role that tariffs are playing, at least from that side in getting to even just a phase i deal is the risk bigger here, perhaps, than investors are relea realizing for this to not happen i think longterm, its risky. In the nearterm, the way i look at the world, its asymmetric to the positive if they say its delayed or there are still issues, the market goes down a little bit. As long as they dream its going to get solved at some point, it will work. If you solve it with a true deal, the market will go higher. I think its asymmetric positive, but i dont think anybody believes its going to get nailed down this year. What is equity investing i buy my little dream today and sell it to someone with the dream later. Is the dream bigger if they sol it yes, it is youve said any market pullback would be a buying opportunity. Wald you be buying the sectors we like a lot right now are health care. Health care just broke out of a twoyear trading range probably a lot of that has to do with Elizabeth Warren slipping in the polls a lot of these Health Care Stocks reacted positively. We like health care. We like certain pockets of tech, specifically software. And we like consumer stocks. The consumer stocks that we like are typically those consumer stocks that revolve around a cost conscious consumer, which would be like your offprice and your discount retailers. Adam, what stand out for you now as one of those attractive u. S. Equities that you said there is opportunity i think people are trying to make some sort of value growth call i dont really believe in that theres parts of the market that im long, expensive. Parts that im short cheap it all depends on your investment process to me, the market looks like its going to grow, earnings are going to grow. The multiples will expand. Theres opportunities all over the board. Whether its in internet or financials or energy im trying to spread returns to make money and to me theres tons of opportunity. Look at the number of stocks that are beating or lagging the index by 20 or more the opportunity is quite good. We build models. We use these macro information to continue to help. And we use fundamental filters to generate return theres lots of ways to do it. Triv triverate means three variables. I like the opportunity set here. Adam parker, thank you. Good to see you guys. S. N. A. P. Has been one of the surprise winners in the market this year. Its up more than 150 in 2019 and its higher again today. Julia boorstin sat down exclusively with Ceo Evan Spiegel and joins us with the highlights reporter morgan, snap has accelerated its user growth and its revenue faster than analysts expected, and thats despite the fact that facebook has taken some of its most popular features, like augmented reality lenses, and featured them in its own apps i asked evan spiegel about this. He said facebooks moves are actually inspiring for snaps designers. And heres what he said when i asked him whether he thought facebooks behavior was anticompetitive i think there are some things that theyve done in the past, you know, that could be perceived to be anticompetitive things like limit iing the reac of other services on their platform, preventing people from using a snap code in their profile. And services that have reached as broad as facebook are held to a different standard, obviously. So i think well soofrt of see what happens over time i also asked him about privacy regulation he said the key thing is making sure that privacy regulation doesnt favor the Big Companies that can afford the cost of compliance and disadvantage startups who dont have those same resources he said that gdpr does seem to be working in europe and that can be used as a model and he said, though, that fundamentally snap is not as exposed to privacy regulation as facebook is. Back over to you julia, clearly the stocks performing very well today, off the back of the interview. What aspects do you think were price moving well, i think it was really interesting to hear from evan spiegel how theyre focused on augmented reality is going to really pay off in the future he talked about how ar could be youd not just for lenses on photos, but also for maps to create a really custom map experience and you know, with a big business around sort of local advertising, you can see how that could be sort of the next generation of where classified ads go, creating a custom app with ads interspersed there. And it really sounds like in many ways, snap is diversifying. It used to be just about the chatting with your friends and then it became about, you know, discover and the professional content that theyre using in discover and now theyre thinking more broadly. Not just about spectacles and augmented realities, but also things about games as well as maps julia, thanks so much Julia Boorstin for us. Up next, elon musk congratulating ford on its new electric mustang tweeting, excited to see this announcement from ford as it encourages other carmakers to go electric too well take a look at fords new mace. And discuss what it means for the tesla and other electric competitors. Plus, were launching a new series on closing bell called watch this space, its focused on the big bets being made in the space industry and today were kicking it off with Venture Capitals mark baguette thats coming up in just a little bit closing bell will be right back some things are too important to do yourself. Get customized security with 24 7 monitoring from xfinity home. Awarded the best professionally installed system by cnet. Simple. Easy. Awesome. Call, click or visit a store today. 43 minutes left to go here and the major averages are all slightly higher right now, on track for a record close once again. We could see a record close for the dow, as i just mentioned the number to beat is 28,400 meanwhile, shares of intelsat dipping. Pie says public auction will allow the parties, all parties to compete for this spectrum, which is being dedicated to 5g use. The alliance thats involved in this potential sale wanted to do it privately intellsat is part of that alliance you can see right there, shares are down 44 right now before this move and they were halted twice earlier, the stock had lost 50 in the past week. Isra well have more on this in the next week in a our segment called watch this space. Moving on, fords iconic mustang getting a refresh with the unveiling of the new electric mache. Phil lebeau joins us now with the details. Reporter right now dealers from around the country are getting briefed on details from the mustang mache a couple of numbers stand out with this vehicle. The range when fully charged up to 300 miles the estimated starting price when it comes in next year, its going to be around 44,000 as for putting the mustang name on an electric suv, fords chairman says this is the right move for ford right now. This is a very strong signal of where ford is headed. Thats why i felt it was important, ultimately, to lead with our strongest name. And were going to follow it up with an f150 thats electric, and it also galvanizes our team. If they know theyre working on an electric mustang, they better not screw it up. They better get it right well, well find out when they get it right when they start deliveries of this vehicle late next year this is what its all about. Sales of electric vehicles in the u. S. This year, dominated by tesla, which basically sells about 80 of the vehicles. And you see gm, nissan, and volkswagen, they pretty much have the remainder of the sales when it comes to electric vehicles dont forget, as you take a look at shares of ford, this vehicle, deliveries will start late next year why is that important, guess what other electric vehicle is expected to hit the market late next year . Its the model y, an electric crossover from tesla, as we take a look at shares of tesla, also remember that elon musk will be showing the First Electric pickup truck that happens out here in l. A. On thursday night guys, back to you. Phil, i would love to focus on the fact that idris elba was the person behind the launch, but i wont. And instead he once worked at the ford plant in london. Is that the reason . I didnt even see the reason why. Just saw you tweeting about it yesterday. Yes that is legit there you go. But phil, the thing im not even really that surprised that theyre using the mustang brand for a new electric car one can understand the way that evolves, but its odd to use the mustang brand for an suv or whats supposedly an suv is that a risk that that doesnt cross over literally, cross over moving forward . Or does it dilute the value of the mustang brand itself reporter sure. Go on social media today theres no shortage of purists who are saying, this is not a pony car, this is not a muscle car, it cant be a mustang ford will take that hit, whatever hit you want to consider on social media in exchange for the number of people who say, mustang, electric suv, let me cut what this is all about. Cuts through the clutter instantaneously. And its not like they just slapped the pony on a pretty makeshift vehicle. This is vehicle that i think will do well if its priced accurately in that mid 40,000 range. Phil, thank you very much similar to the aston martin trying to launch an suv. Well see if that works. Also, doesnt feel right to me but, phil lebeau, thank you. Meantime, tesla has pitched its electric pickup to the military, as well. Up next, Piper Jaffrey out with its teen holiday wish list and some of the brands that made the cut might surprise you the analyst behind that note joins us next. Plus, fedex challenger the publisher of the New York Times to a debate after a story this week claims that the company cut its tax bill to zero without making good on its investment promises. Well ask the investor behind that story how he feels about fedexs fiery response 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. Not much, how about you . Are you answering my text in person . I am. Yeah. Lol. Come on in. This is tech that helps you be there. The nissan altima. Now offering the most techadvanced engine in its class. Nvand im not gonna be around. E most techadvanced 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 to closing bell. Piper jaffrey revealing generation zs wish list for the holidays money and clothing came in as the top two wishes, while nike, apple, and Louis Vuitton came in as their top brand picks lets bring in the lead analyst behind the note, erin murphy erin, thanks for joining us. Thanks for having me. All right so give us the full results of this survey and what it means as we go into at Holiday Shopping season yeah. So we did this survey with gen z. The average age was 16 years old. What we asked them is what they want for the holidays. Its a very broad opened question, no aiding involved and whats very interesting is the number one and two responses were pretty unchanged from former surveys teens want money and they also want clothing. But when you dig a little deeper and look at the brands that theyre citing, the number one brand that is being cited is apple. Air pods were a very popular item on the wish list this year. And number two was nike. Nike actually tripled share relative to where it had been last year. Rounding out the top three, Louis Vuitton, which was a big surprise to us, but that came in as the number three preferred gift for the holidays. So erin, i was going to bring up the fact that number one on the list was money thats always the case, is it . Like 15yearolds are saying for christmas, i want money . Yeah. Thats always the norm, is it you know, its been either number one or number two if you went back over the last five years of looking at wish lists, they asked for money. I guess they want to spend it on whatever they want its either been in the top two places it wasnt too big of a surprise. I think its more interesting when you start looking at the brand details of what brands teens are actually citing. Mark, typically you see a lot of the Retail Stocks or Consumer Discretionary stocks start to rally in november ahead of the Holiday Season or sell off or at least flat line in december. Is that what you would expect this year . And based on some of these results, i mean, are these names you would be considering yeah, so the Louis Vuitton thing, what one baffles me ive got a seventh grade daughter kam, im sorry if youre watching right now, youre not getting a louis weve got to take that one off the list apple, i believe it. But air pods are thats a big thing. Everybody wants them right now lulu, thats one i didnt see on there, im very surprised about that one i would expect lululemon to sell a lot of stuff during the Holiday Season typically what you see during this time of year, you see the beginning of november is kind of rocky with these Retail Stocks, and right when you get to thanksgiving, they take off until the end of the month first week of december is rough and they zoom into the end of the year thats typically what you see. Erin, in insights between online and off line and whats influencing these kids to why they want what they want yeah, so we asked another question this was a little bit broader looking at the u. S. Demographic, holistically we did a pulse survey over the weekend talking to a thousand u. S. Consumers what was interesting about the online versus offline dynamic is when we asked them, how much of your christmas or Holiday Shopping do you intend to do online it was 46 of their overall shopping was intended to be online this holiday. So we think it will be a very strong online, specifically. Again, remember that calendar this year between thanksgiving and christmas, its six days shorter versus last year theres a much more consolidated period to actually be in stores. So we do think online will still be the winner. Erin, thanks so much for joining us good to see you. Thank you im a little surprised, morgan, that mini brands four cheese didnt make it on to the list shucks. Great surprise. There we go. Erin murphy there. Weve got 32 minutes left of trade. Were on record close watch again. We should remind mike of that. Here are the key things driving the action the mood in beijing about a possible trade deal with the u. S. Has turned pessimistic. A source has told cnbc, that trade uncertainty weighing on oil prices and bond yields and fed chair jay powell met at the white house with President Trump this morning powell said future decisions will continue to be made on a nonpolitical basis. We are up 26 points on the dow its time now for a cnbc news update with Bill Griffeth bill hello, morgan, heres whats happening at this hour secretary of state mike pompeo announced a little while ago that the u. S. Is softening its position on an israeli settlements in the west bank the latest in a series of Trump Administration moves that essentially weakens palestinian claims to statehood. After carefully studying all sides of the legal debate, this administration agrees with president reagan the establishment of israeli civilian settlements in the west bank is not, per se, inconsistent with international law. The Supreme Court has denied Martin Shkrelis request to hear an appeal of his criminal convictions for securities fraud. The rejection means that he will have to serve out the remainder of his 17year prison term and forfeit more than 6. 4 million an alabama quarterback, Tua Tagovailoa underwent a Successful Surgery on his dislocated hip today while he is out for the year, he is expected to make a full recovery and be ready for next years nfl draft sorry that he wont be around for the rest of the season the tide has been rolling. By the way, wilf, when you have children some day, you will learn, youll get lots of texts that say, send money. Whether its christmastime or not. For christmas sure, i can get trust me, i sent those texts myself, but not for christmas. Well as a kid otherwise, christmas would joust be like, lets all exchange cash, net out. Get your venmos out lets make use of the free transfer tool and net it off to zero there you are that would be fun bill, happy christmas bah humbug. Lets get over to mike for his Second Market dashboard. Hi, mike hello, wilf were going to crown some undisrupted champions of the stock market actually, investors have already done this. Four stocks are bundling together as a new class of these companies that are, at one point, were considered to be vulnerable to some kind of disruption to their core business but now the market has seen their strategy pivot into the digital age and endorse endorsed it with a higher valuation this is disney, nike, walmart and starbucks. All up over last 12 months between 23 and 27 , compared to 14 with the s p 500 obviously, this is just one stretch of time, but its interesting that the market has gravitated over here and take a look at some of the key points i would guess that we need to highlight her. One is that if you looked at disney and walmart last week, its very clear that the market has said, theyve figured it out. Disney with disney plus. The huge response weve got to that and walmarts quurarterly resul were very consistent with this idea theyve reinvented their business now, theyve had this premium valuation. These stocks are 40 premiums in terms of forward multiples theyve already been given a lot of credit in terms of having sorted all of this out nike and starbucks, slightly different. But i think that their directtoconsumer digital and mobile strategies are very much key to the premium that they had. So the question now is does the market have this right this is a branch of the buy quality, buy traditional Growth Stocks for safety and dividends and all the rest of it it also seems as if now theyve been evaluated to this anointed status as these companies that have disrupted themselves and can for a very long period of time succeed in that well have to see. Earnings growth for a lot of these companies should not be that exciting for the next year or two thank you mark, do these sort of tried and true consumer names warrant a greater valuation based on their own disruption of themselves i think they do we own disney and walmart. Obviously, disney, you know, the disney plus response was great what is it, 10 million on day one, maybe another couple million of that. So i think disney is traditi transitioning their Business Model, so they deserve that premium valuation. And you saw it, as soon as they announced disney plus, the valuation went from 16 to 24 overnight. Walmarts another one where as the economy slows, more and more consumers trade down theyre doing everything they can to drive volume, because its such a low margin business from curbside to delivery to pickup those are the two i like the most walmarts up a percent or so today. After the break, well dive into a new report detailing how americans feel about banking with big tech on the heels of googles foray into checking accounts and as we head to break, here is a check on bonds. Yields slipping to start the week on the back of uncertainties involving china trade. The tenyear yield sitting just above 1. 8 closing bell will be right back. Welcome back to closing bell. Would you bank with big tech according to a new report, more americans are willing to give it a try. Cnbcs kate rooney has that story from San Francisco kate hey, morgan despite the data and privacy issues surrounding big tech lately, people are open to banking with them. According to a new report out from bane today, 62 of the u. S. Respondentents said they would buy a Financial Product from an established tech company the average was even higher for younger people, roughly 75 of those 18 to 34 said they would be willing to bank with a tech giant. Not the case for baby boomers, though only 32 of those 65 or older said they would choose Silicon Valley over wall street. The study highlights google, apple, and facebooks potential reach as they get into consumer finance. I spoke to the author of this report, who said consumers are looking for Digital First options, regardless of whether they come from a bank or from a tech giant hes also predicting more partnerships like citigroup and google and Goldman Sachs and apple Going Forward. Kate, i dont want to overcomplicate things, as the banking reporter, forgive me for doing so yes, wilf, this is your turf, absolutely in the way we expressed the question, a difference between, would you do it if it was not fdic insured, and the deposits werent protected by the government, et cetera, et cetera im sure we didnt, is my point. The tech company in this instance is a consumerfacing name, but most people might not think, even if youre banking with google, youre actually banking with citigroup you always have that fdic insurance. So theres definitely some interesting things in the background, but the author of this report mentioned the Bank Partnerships and said that these guys, everyone has got to sort of scramble to find a dance partner, as he said. So those that dont have a big tech brand Going Forward might struggle, especially if they dont have a good Digital Strategy kate rooney, thank you. And wilf, just to bring this full circle for you, going back to our previous discussion about gen zers wanting catch during the holidays, Tech Companies are looking to capitalize on that. And christmas will be ruined forever more if we all just give each other cash. Kate rooney, thank you so much were on the pace for a record close to the dow not quite for the s p. Just for the nasdaq. Up next, weve got your last chance trade and later, shares of biotech Karuna Therapeutics are up more than 400 in todays trade alone. Well tell you why thats coming up asoned traveler. And they took my toothpaste away. And you should be mad at people who take unnecessary risks. How dare you, hes my emotional support snake. But youre not mad, because you have e trade, whose tech helps you understand the risk and reward potential on an options trade its a paste. Its not liquid or a gel. And even explore whatif scenarios. Wheres gate 87 . Dont get mad. Get e trade and start trading today. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From finding out whats selling best. To managing your fleet. To collaborating remotely with your teams. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. 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. 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. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. Welcome back 18 minutes left of the session mark, what are you going for item last chance trade time. Were going with Blackstone Blackstone is the largest private asset manager in the world. When you look at stock valuations and bond yields right now, it really makes sense to consider alternatives in your portfolio. So individual investors over the course of the last several years have begun to throw away their old 60 40 strategy of 60 stocks, 40 bonds in favor of a 50 30 20 strategy. And when you look at endowments, so institutions, from 2002 to 2018, equity exposure has gone from 50 all the way down to 36 . Fixed income exposure has gone from 23 down to 8 alternatives have gone from 24 all the way up to 53 . So money continues to flow into these alternatives theres fee compression across the entire Asset Management industry but its not hitting alt managers and this thing is paying a 3. 6 dividend so the pushback, i guess, would be, could all of that now change to affect this industry whether its the fees come down. The fact the stock price has already had a fantastic run in the last 6 to 12 months. The fact that private valuations to which is already geared high. There could be some sort of mean version, but i expect money to continue to flow into these asset classes. You have to look at the cost of capital, and wheres the best place for you to allocate it right now . Is it in stocks . Is it in bonds that are paying a 1. 8 yield so i still think theres more value in these private Asset Managers one expert view on blackstone today, mark tepper evskr r one a weektoday from ste machwartzman meantime, its 17 minutes to go to the closing bell. Up next, well bring you uninterrupted coverage of the final minutes of trade and the market zone is next. Well be right back. Whether youre out here on lte. Or here on a wifi hotspot. Xfinity mobile has more coverage to keep you connected to what matters most. Thats because its the only Wireless Network that automatically connects you to millions of secure wifi hotspots and the best lte everywhere else. And now get 250 off when you buy a new Samsung Phone during Xfinity Mobile beyond black friday. Plus, you can save up to 400 a year. Click, call or visit a store today. Dont get mad. Get e trade, dawg. With 13 minutes left in the trading day, both the dow well, the dow is higher by 12 points and the s p is down, just fractionally, down by a point right now. We are on record close watch we are in the closing bell market zone. Commercialfree coverage of all the action going into the close. Cnbc senior markets commentator mike santoli is here and weve got mark tepper from Strategic Wealth partners as well and as morgan just mentioned, we are on track just for record closes on the dow and the nasdaq lets kick things off with tmobile Julia Boorstin has a story for us julia . Well, wilf, tmobile shares now back in the green after dropping this morning on news that Ceo John Legere will step down at the end of april and will be replaced by president and ceo, mike seifert. This comes as tmobile battles to close its 26 million merger with sprint, which is expected to be completed next year. Legere denied reports that he was having discussions to replace weworks adam newman. He says this transition has been under development for a long time in a tweet he sent today. Guys, back over to you julia, thank you. On top of that, we had peter adderton, the founder of boost mobile come on squawk alley and make a pitch, make a bid for the divestitures of boost that are supposed to go to disturb right now. It just seems like in general, when state regulators still looking at this merger, this is not a done deal. And theres a lot that could happen between here and next year its true, although whether it happens or not, i think the companies and the industry going to a different phase, its not the pure marketing driven story. Its obviously a lot of integration and getting over legal hurdles. So i dont think the market is pleased to see ledgere go, but its not that surprising when this was potential, he was leaving to go to wework, the stocks suffered. Then the stock recovered and its not now falling again, although it opened lower on the back of the news that hes leaving. So the market is obviously taking it in stride more than a couple of weeks ago. Perhaps if the market is absorbing this notion that it was a planned, you know, secession, episode, hes jumping in an abrupt way to go to somebody else. All right hong kong tensions heating up over the weekend and thats having an impact on macau casinos. Lets get to Contessa Brewer for more on this a note from jeffreyies estimates that november gaming revenues are declining even more than anticipated as much as 13 lower than november last year and the analysts say its in part that perspective clients main gateway to macau. Wynn, las vegas sands, and mgm largely have downplayed the impact of these protest, but vip daily volume is off more than 30 . And growth is slowing in the mass gaming sector, as well. Shares of wynn right now are actually up 2 ne millco is up 1. 5 . Its las vegas sapds that is off by a percent today and contessa, for any nonchinese visitors to macau flying in, you have to fly to hong kong first, right thats right. And the airport has remained open but listen, roughly about 85 of the visitors to macau come from Mainland China and from hong kong so thats really where their traffic is coming from and if youve got some trepidation on that front, its likely always going to affect macau. Contessa, thank you very much for that nine minutes left. Lets move on to snap. Ceo evan spiegel sat down with cnbcs Julia Boorstin earlier today and weighed in on the rapidly growing popularity of social media site, tiktok. Snap and tiktok are so different, and we actually consider them partners so, you know, theyre an advertising partner, theyre a snap kit partner, meaning that tiktok content gets shared through snapchat but the services are very different. It seems like tiktok is more of a popularity test. Mike, i thought it was really fascinating, not seeing them as a director competitor and being much more competitor and optimistic about the other main competitor, facebook and instagram stories. And clearly the stock price today is rewarding those comments in general. I guess, you know, years of coexisting with those things probably has given them a little bit of security about their snaps place in this market. I think hes probably correct, by the way, about tiktok in terms of how its used and how its differs but eyeball hours are eyeball hours. If you have a lot of new fads coming along that are stealing engagement away, i guess shortterm, it takes a hit from snap mark, youre invested in facebook, not snap do you feel like you missed out. I wish i would have rode that out for the 150 gain so far this year. Unfortunately, we left it behind the issue with snap is theyre doing really well in that 18 to 34yearold range, but struggling with the 34 plus crowd, the crowd with the deeper pockets. I think their deepest competitor would be facebook or more specifically, instagram. So we would much rather be there. 7 1 2 minutes left in the session. S p just lower, nasdaq just higher lets move on to home Builder Sentiment, which edged lower for the month of november. Cnbcs diana olick has a summary. Hi, diana. Hi, wilf. With the big builder stocks, check it off up over 50 yeartodate thanks to lower Mortgage Rates. And despite that unexpected drop in Builder Sentiment in november the nahbs Confidence Index dropped one point to 70, the first fall since last june, but well above a year ago. And anything above 50 is positive anyway. Current Sales Conditions fell two points to 76, buyer traffic, off one point to 53, and sales kpngs expectations rose one point to 77 sentiment and stocks are high because Mortgage Rates are low back to you guys diana, thanks so much mike, weve discussed this quite a few times, but even though the curve has steepened a little bit, that has helped things like the banks, it hasnt steepened so much to help the Home Builders in fact, the ten year is pretty much what its geared off of, and that has not got escape velocity, down a fair bit in the last couple of weeks i think thats supportive, just a general notion that one of the stronger parts of the landscape is domestic consumer and all the rest of it it makes sense that theyre trading this way i dont know that its off to the races for the Home Building sector its pretty well discovered right now that its a strong market of the market your thoughts on Home Builders i like dr horton here so when i look at affordable home inventories, existing homes that are out there on the market, theres not a lot of inventory when you look in that 250 to 500,000 price range. Thats what dr horton specializes in, is building those Affordable Homes meanwhile, levi strauss stock is down about 1 today the stock has underperformed since its ipo, but our own jim cramer sat down with levis ceo and talked about what differentiates levi from other retailers. Consumers want to come into the store and they want an experience if theyre just going to come in and transact, they can do that online but they want to come into a store and have an experience, something thats unique, and something thats instagramable and we have shops in most of our stores where we do personalization and customization. And dont miss the full interview with levis ceo chip berg on mad money tonight at 6 00 p. M mike, i mean, weve seen so many of the companys that went public this year sell off since their debuts, including levis does it belong in this batch of newly public yeah, i dont think it quite fits with the narrative of companies that stay private too long, they took on too much capital, that were Less Software oriented than we thought, like uber, for example. So not quite, although i do think it shows that the appetite for a brandnew fresh name, even with an old brand attached to it, is not really that strong, at least right now a new stock, but an old business is something that the market didnt know what to do with so the one thing that he mentioned was that Consumers Want an experience and i believe that but if Consumers Want an experience, then nordstrom would be performing better the stocks down like 20 this year, and when i think of providing an experience to the customer, i think nordstrom does it best, right so if theyre not successful at it, i dont know how levis is going to do much better. Interesting to hear you say that im more of a 40 karats, frozen yogurt kind of girl. If i can eat and shop and feel really good about myself shares of Karuna Therapeutics are up more than 400 today in todays session. Potentially gamechanging therapy with people like schizophrenia. Thats how citi put it, noting the companys experimental drug provided strong efficacy in a midstage Clinical Trial while sparing patients from safety issues the more than quin up thing in karunas stock price gives the company a market value of more than 2 billion. The drug still has a ways to go before it could reach the market, though karuna says it ames to start a larger trial of the drug by the end of next year guys so, meg, clearly, 400 rise, 2 billion market cap, how big is the market for this type of drug analysts are putting multibillion dollar potential market previews on this drug, if its approved. It has to get through phase iii, of course. But it is a large market millions of folks have schizophrenia, and often they are not well served by what is already object market. They have bad side effects so more drugs are needed it could be a multibillion dollar drug, but phase iii is traditionally very hard for drugs in this category the placebo effect can be very high, so its hard to see benefit on top of that its going to be a tough road ahead, but investors saying, this is way better than they expected today for this drug meg, thank you so much for that moving on, weve got two and a half minutes left to trade the dow just positive. Mikes been looking at the market internals kind of mixed a flattish index performance and more stocks are down than up i would also take a look at the new highs. And lows on the nasdaq here you have over a hundred stocks with new highs. Its something to be focused on. And momentum versus value. A lot of noise about value coming back, momentum reasserted itself outperforming value we have less than two minutes to go. Lets send it over to Rick Santelli for a look on bonds if you take a look at an intraday chart on 30s. The rest of the curve, down two basis points in very tight ranges pound versus dollar, all the brexit polls look as though maybe a plan is actually going to be passable and well see a real brexit after the december vote it made the pount versus the dollar intraday trade up to well, on this longterm chart, you see the last high there, 1985, todays was one tick above that bertha, boy, did it hold the 85 lows and make a comeback yeah, it did. We are going to be closing here, it looks like, at a fresh alltime high. Among the stocks making new highs today, nvidia. Thats a big bounceback after some disappointing guidance from the company last week. New 52week high, still 25 below its 2018 alltime high amazon, take a look at the difference apple and microsoft at new highs today. New historic highs amazon still about 14. 5 below its alltime high. And below the radar, take a look at peloton today it actually finally climbed back above its ipo price, now at 30 bob, over to you flattish day, bertha, keep an eye on the big picture when you have the equal weight s p 500 and the market cap weight s p 500 hit new highs at the same time, we hit value and growth, hit new highs at the same time. And youve got cyclical and defensive names like tech and Consumer Staples hitting new highs. Broad rally in the markets, even though you have a flattish day with the s p 500, essentially ending the day up one point. The dow up 28. Welcome to the closing bell, everyone. Im wilfred frost. And im Morgan Brennan in for sara eisen along with mike santoli. Lets check in with where we finished as you can see, record alltime closes for the three major averages, albeit only fractional gains today. 29points, 0. 1 for the dow s p just getting positive in the final minutes of trade to join in as well and joining us to talk about the market day, mark tepper, founder and ceo of Strategic Wealth partners, is still here with us, along with mark lusheeny with anney, montgomery, scott. Triple ms on set here today. Mike santoli, ill start with you. And an upside down m. So i guess its quadruple anyway mike santoli, fresh, record highs for all the major averages, albeit, just barely. Just slight its a little bit of an upward drift or a trudge. Its not as if people who came into today and said the markets hit a record high and im either really excited by that or really spooked by that. Thats probably a positive also, the market declined the opportunity to sell off on what seemed like some adverse trade talks news this morning. I think that shows the stakes are getting lowered. As long as the market remains fixated on, if we dont reescalate the trade war, the markets probably okay im still watching for sentiment to get a little too topee. Maybe were getting there, but not likely are we more likely to go up 3 or down 3 . I think vuyou would have to give the advantage to up but i dont think either one should be surprising if youre down 3 , youre still in an uptrend, by that magnitude of a pull back thats probably your better takeaway mark, is this just all about trade now. Is that whats dictating market moves . I would say yes, but i think the market really made a Statement Today in not selling off, given the fact that there was kind of a pessimistic outlook whether or not this phase i deal was going to happen but i do think phase i is pretty much completely priced in. I do think you have to see a phase i deal i dont know that china right now has the incentive to get it done, like they did a couple of weeks ago. I think Elizabeth Warren slipping in the polls is causing them to retheir strategy but i do think trade is front sk and center mark, what do you think about this market right now and how dominant the trade phase i possibilities are to the moves weve seen well, morgan, i think its undeniable that it is dominant, certainly, and should we see that perhaps, which is a movie weve seen before play out, which is, theres some relapse in the talks, relative to actually getting this phase i down payment on the negotiations, that would certainly clip the market pretty well but at the same time, obviously, we have the seasonal factor here, where the setup is for a santa claus rally. Theres the fomo principle thats alive and well. And we know a lot of investors are either underinvested or have been on the wrong side of the trade so far this year so theres a bit of a catchup phase to be had. In addition to that, i think importantly, including china but beyond as well is just indications that growth abroad is beginning to stabilize. Theyre still tentative, theyre not uniform, but i think collectively, were starting to see enough positive signs that improvement is at hand and if thats the case, that will go a long way to soothing fears that the backdrop for corporate earnings, particularly for u. S. Multinationals is going to weaken. Instead, perhaps it bolsters the case between 2020 earnings expectations which are still expected to be up year over year can be realized. Fed chair Jerome Powell met earlier today with President Trump and treasury secretary Steven Mnuchin lets bring in Steve Liesman steve, i guess unscheduled, this meeting. But not wildly unexpected for this kind of thing to happen no, they talk from time to time, president s and fed chairs talk from time to time this is their second meeting this year. Theyve had three other phone calls, according to records from the federal reserve. So i think the context, though, wilf is the are the tweets from the president that are sharply critical, that makes a meeting kind of curious and makes a lot of people want to have been a fly on the wall to have listened to how it went down mike santoli, in terms of a meeting between the two, i mean, we know the fed chair has said that, you know, things are on positive, data dependent right now. What do you think that conversation potentially looked like obviously, from his side, i think we know what it looked like from powells side, we know it was a rigorous theiteration tha the way we see the world when the president followed up the news that it was a cordial meeting and didnt lash out with any kind of hostile comments about the fed chair, that might have dial doed down the temperar a little bit in terms of peoples response to it. But i do think that both sides have their positions sta s stakt and we know what they are. Presumably, even if the president is in general tweets to suggest or in speeches suggest he still wants further cuts or flirts with the idea o negative rates, he must be pretty happy about the pivot that hes seen and content with the data of late its hard to know, wilf i would not impart those emotions to the president , given what he said publicly or said in the tweets, i think its fair to say that republicans in congress judged by the testimony last week certainly seem to be have not a lot of objection with where the fed is right now and i think you point out that three different rate cuts, the fed has stopped reducing its balance sheet. In fact, its begun to grow its balance sheet. So policy is relatively stimulus and certainly, objectively, more stimulus than it was planned to be this time last year so i think the thing is, wilf, is that the president among other things is a real estate person and ive never, i dont think, met a real estate person who thinks Interest Rates are low enough mark, in terms of how youre kind of deciding which stocks to go with, is the fed much less of an issue than it was, say, six months ago well, as i said the last time i was on about a week and a half ago, right, three to four cuts, thats considered a midcycle adjustment thats very bullish for stocks once you get the five cuts, it becomes a problem. Thats kind of a recessionarylike scenario i think its very unlikely the fed cuts again theres really no reason for the fed to cut right now theyve already fixed the yield curve. However, with inflation as low as it is, if there are problems, they do have some wiggle room here i think right now, i think the markets are fine, the economy looks fine theres no reason to cut again i think if we get the gdp tracking data now from the atlanta and new york feds are showing sub1 if thats what it is, it will be interesting to hear the commentary around that, as to whether the fed can actually declare victory and say were on hold indefinitely. Steve liesman, thank you. Well get back over to bob pisani for a look at todays biggest movers bob . The market wants to go up, even with dubious trade talk news today, the market generally, the low prints right near the open, close near the highs for the day, thats been a trade all month long the stunning diversity of the rally is what really sticks out to me. Weve been talking about Health Care Stocks here you look at your humanas and wellcares hitting new highs. The medicare for all threat is greatly diminished in the last month. These stocks are all reflecting that but elsewhere, just the stunning breadth of the rally home depot and the Home Improvement space. This is a massive name thats up 40 so far this year weve been talking about walt disney for a long time its the same story. Its up almost 40 this year finally, the banks had a terrible time last year. Jpmorgan, also another winner consistently up about 35 this year guys, back to you. Bob, thanks so much for that. Lets get to market for a final thought on the markets mark, whats your take from some of those comments that bob just mentioned to what can continue higher of those sort of stocks well, i think as a group one thing that is common amongst them is theyre iconic brands in their respective space and investors have been crowding into the things that have been working and theyve been work vrg wel ing very well. I also think its interesting that some of those are more cyclical in nature than the defensives that have been leading the market up until the month of october so i think that is encouraging and it speaks to the rotation that weve seen or rather alarmingly since the beginning of october, into this valueoriented subspace, that includes things like industrials and financials and i think thats a good sign we have been teased like this before, only to see this be one big head fake. But i think given the setup around not only the firmness of domestic conditions, but finally now, for the first time in about a year, firming Global Economic conditions i think theres a backdrop for these cyclicals in their rally to be sustained into 2020. We have a news alert. Just going to hit the pause button on that discussion. Its on the movie industry Julia Boorstin has it from us. Julia . A big ruling from the Justice Department that could have a huge impact on movies theatrical distribution and could spark consolidation. The department of justices antitrust division saying that it ames to terminate the settlements which prevented the movie studios from owning Movie Theaters these are known as the paramount decent decrees macon delrahmi saying the decrees are no longer needed amc, imax, and sin mark moving higher on this news, which could move to consolidations or the sale of these companies to media companies. That could lead to the closing of the threemonth window between theatrical and Home Entertainment releases certainly a fascinating area to watch. Morgan, back over to you julia, could hathis have an effect on everything weve seen as well . Its really interesting that weve seen netflix as the prime example, do more limited theatrical release, where it doesnt have access to all of the Movie Theater chains, because they dont want to put movies on their screens that are going to be available for streaming, either right away or a couple months later. What i think this will mean is netflix will continue to try to use its movies to get attention, for the streaming product and also attention for its filmmakers, but what we could see is other studios do something similar to what netflix is doing if theres a movie studio who says, this film is not going to have a threemonth run, it might do really well for a couple of weeks. Lets put it in a theater for two weeks and make it available two weeks later. We could see a real change here if one of the media giants does end up buying one of these theater chains julia, thanks so much for that she mentioned tomorrow, the chief will be joining us thanks to mark tepper and mark leshini joining us today still to come, fedex firing back at the New York Times after a story claims the shipping giant slashed its tax bill to zero without following through on its promise to spur growth well get reaction from the reporter at the times that broke that story plus, were launching a new series called watch this space to highlight investing opportunities in the space race. We have a great lineup of guests all week on closing bell starting with mark boggette. Were back in 90 seconds most people think of verizon as a reliable phone company. woman but to businesses, were a reliable partner. We Keep Companies ready for whats next. man we weave security into their business. Virtualize their operations. woman and build ai customer experiences. 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Welcome back fedex at the center of controversy today after a New York Times story scrutinized the story that ceo fred smith played in lobbying for the 2017 tax cut bill the story claims that despite fedex now having a zero dollar tax bill, the company has not invested in its employees to the extent it has initially promised fred smith calling the report factually incorrect and saying i hereby challenge ag sulzberger to a public debate in washington, d. C. The New York Times, meantime, responding to fred smiths statement, saying that fedex ees colorful response does not challenge a single element in our story. Joining us now is Jim Tankersley who works with the New York Times. We should also know that we reached out to fedex who said the ceo, fred smith, is not available for a statement. And you claimed they paid zero tax in 2018, when they in fact, say that they did pay some tax and they notified you of that before the story went to print is that fair well, no, what we said is that they owed zero tax in 2018. You can make tax payments in any year for lots of different reasons. We asked fedex to explain to us exactly how much they paid and owed in taxes in 2018 and 2019, in 2017. We gave them a long and detailed list of questions months ago they never responded to any of those detailed questions and we stand by all the facts in our story. On the headline, jim, ultimately, is the person that is responsible to answer questions on the benefits and pitfalls of the tax cut be the politicians that enacted it . Or Business Leaders that ultimately have a duty to serve their shareholders as best they can . Well, i think its a wonderful question i think that we have a responsibility to hold both politicians accountable for the promises they make and the supporters of politicians accountable for the promises they make to help sell policy changes. In this particular case, the promise was very clear that a cut in the Corporate Tax rate would lead to an immediate and sustained boost in boost investment in the united states. We have not seen that. We have not seen anywhere close to that. What we have seen is, essentially, lower, Slower Growth in investment post tax cuts under President Trump, than pretax cuts under President Trump. Jim, fedex is a very specific story. Theyve had a lot of issues in europe with their tnt acquisition and how thats rolled out, especially on the heels of a cyber attack. They have a lot of exposure in asia, so all of the u. S. china trade back and forth has impacted them a lot, as well when you look through the numbers, how much of this was fedex specific versus some of the other companies that might be in similar positions. For example, u. P. S. . Well, sure, another great question fedex is entirely indicative of the investment response that weve seen overall from companies. In fact, theres more than three dozen companies, i believe that zeroed out their Tax Liability after the cuts per our analysis. But we have not seen any we did a regression analysis of size of tax cut versus amount of increase of investment and found no relationship. And if anything, there was a weak relationship in the inverse that companies that got smaller sized tax cuts had slightly more increases in investment. I guess, jim, some of the points you make are clearly on the surface seem to suggest your thesis is correct. But companies dont make their Capital Spending decisions on a year by year or month by month basis. And is it fair to say that the real definitive answer to this answer wont be known for a couple more years . Oh, absolutely. I think that we keep writing stories over and over about what these analyses tell us if you had just taken the investment response from the First Quarter after the tax bill passed, you would have had a very different story and i would pike like to point , that is something the investment surge did. Now were a couple years into it that story has changed there is a real possibility that economists raise that over time that lower tax cost will encourage more investment. And if that happens, well absolutely report that, too. Jim, were you surprised to see the response from fred smith . I think, its the first time in my career that anyone has ever challenged my boss to a debate over a story i wrote. That was different i would love to see it, im just not sure the wider public would, but i think its very New York Times business section and cnbc specific. I think it would a great debate. I hope you successfully, jim, trigger it i would love to, if nothing else get an interview with any of the fedex executives that we asked for comment on this. Because i would love to learn more about how they, you know, see the effects of law on their taxes. Jim, thanks for joining us. Great story. Thank you up next here on closing bell, well break down the charts to see if investors are chasing record highs for the market are starting to get overconfident. Plus we are kicking off our weeklong special, watch this space. Coming up, we will hear from a top Venture Capitalist in the space investing industry to find out where he sees the biggest oprtits t fal ontierieinhein [spokesman] if youve tried college but never finished, group cheering snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu nice rock. Its time to drop gold. Go digital. Go grayscale. Welcome back lets send it over to mike santoli for his third dash board of the day mike morgan, investors were pretty frightened back in august and september, and they are definitely unafraid for the moment if you look at ways to track the sentiment, investor positioning, Deutsche Bank has sort of a composite look at this this shows equity exposure based on fund flows, based on professional investor positioning with regard to futures, and all the rest of it. So obviously, this is going to oscillate up and down, around an average. This is a very important peak. Thats that early 2018 peak that was really the closest weve come to sheer universal exuberance in this whole bull market and right here you see, its getting up there i wouldnt say its yet extreme, but we seem to be in some kind of a range where were capped roughly around this 0. 8 level. Now, it doesnt mean the market cant trudge higher as things get better, or for that matter, even the fact if this goes down a little bit, it still probably can be okay, because you see we sort of existed there for most of 2017, when the market was strong also. 2014 was an up year, as well but it seems like, i think a lot of folks have already done a little bit of their chasing as this market has taken off. Is it the direction of travel of this line that makes the most difference as opposed to the absolute level i think the magnitude matters, as well. It builds over time. Assist little b its a little bit of a cumulative measure how far it runs usually tells you how long its been running that way mike, thank you, as always. Up next, watch this space a top investor in Space Technology tells us about the latest trends emerging in this fastgrowing industry. Plus, a new study maybe forcing the medical community to rethink heart health we will discuss the impact that could have on medical device makers later here on closing bell. Cistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. 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. Not much, how about you . Are you answering my text in person . I am. Yeah. Lol. Come on in. This is tech that helps you be there. The nissan altima. Now offering the most techadvanced engine in its class. Welcome back its time for a cnbc news update with Bill Griffeth hey, bill. Definitely a music upgrade since i was there, wilf. Heres whats happening at this hour an air strike has slammed into a biscuit factory in tripoli, killing at least seven people in what the u. N. Envoy there said could be a war crime the air strike also wounded at least 33 workers, who were taken to nearby hospitals for urgent treatment. Back here, Senate Majority leader Mitch Mcconnell said today the houses impeachment inquiry against President Trump is likely to continue until christmas, but he added that he is pretty confident the president will not be removed from office. I cant imagine a scenario under which President Trump would be removed from office with 67 votes in the senate. So, i dont know how long senators will want to continue the trial, but im pretty confident at the end, it will not impeachment will nod elite to ouster. And finally, happy news taylor swift will perform on the American Music awards this sunday after all, following a public spat with the Big Machine Label group, which owns the master rights to her older material the company reached a Licensing Agreement with the singer, so she gets to sing on sunday night. And im dearly hoping she sings one of her old country hits. The title is, im only me when im with you. There we go one of the big ones bill, i want to go back to what you said at the top did you actually get to pick the songs . Because wherever i come up with a request, its always roundly rejected clearly, i didnt get to pick the music. I dont know who did, but, yeah. Anyway. Its always one of the Brilliant Team bill, thank you. Have a lovely afternoon you, too. Surprising results in a new stent study could change the way doctors treat Heart Disease and Impact Medical device makers and google is set to launch its digital cloudbased gaming ndut wthtomorrow fi oheer this will be able to compete in that crowded industry thats later on closing bell. Sometimes, the pressures of todays world can make it tough to take care of yourself. But natures bounty has innovative ways to help you maintain balance and help keep you active and wellrested. Because hey, tomorrows coming up fast. Natures bounty. Because youre better off healthy. Oh, wow. You two are going to have suyeah, have fun . Thanks to you, we will. Aw, stop. This is why voya helps reach todays goals. All while helping you to and through retirement. Um, you guys are just going for a week, right . Yeah thats right. Can you help with these . Oh. Um, were more of the plan, invest and protect kind of help. Sorry, little paws, so. But have fun send a postcard voya. Helping you to. And through. 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Many of them are not sophisticated about space or our industry and i believe most of the investment thats gone in will be eventually be destroyed theres way too many startup companies, especially in the launch world, in small launch in particular, relative to the amount of demand that there will be for going to space. Ula is a mature company. Our revenues pay all of our bills in returns to our owners and were able to do everything youre seeing here within that kind of mature Business Model that will be really insensitive or unaffected by when the vcs are finally done and move on to the next big thing ula is the result of a joint venture between boeing and lockheed martin. It was formed back in 2006 after the last big satellite boom that was expected in the late 90s and never really materialized. And actually led to something of a collapse in the launch market back then. But joining us now for more is mark boggette, ceo of seraphim capital. Good evening. I want to get your response to tony brunos comments just now and i guess, in terms of context, why perhaps hes wrong given the fact that you are making investments in this space. Well, indeed, there are now nearly 150 companies that have raised Venture Capital funding in the launch segment. And i actually tend to agree with him i think that there are too Many Companies that have been invested and its highly likely that the majority of them will fail but i still think that we will be left with three, four, five, six venturebacked launch companies that will go on to succeed. Now, mark, investing in space, at cnbc. Com, i would point viewers towards some of the articles written by my colleague, michael sheets there. The way he breaks this down is theres really four main categories human space flight, national security, satellite communications, and imagery and data analysis. Where do you see the greatest opportunity for investment right now . And how would you be going about it yeah, we see the opportunity in the imagery and analysis. We believe that well, our thesis is that the size of satellites, the cost and weight of them, has fallen to a level where satellites with significant functionality can be launched for between 100,000 and 1 million per satellite so, the traditional satellite is costing 300, 400, 500 million. The smallest satellites enable you to build a much bigger constellation. And its the big constellations that we believe where the value is because they can bring data to almost realtime or indeed, realtime and we think its the realtime nature of this data thats going to create a lot of big, new Market Opportunities in a very broad range of end verticals, such as the insurance market, the martime market through to the retail construction, oil and gas. And we believe that there are 1 billion opportunities to use this close to Realtime Data in a broad range of these end markets and thats where the opportunity lies mark, we speak a lot on this channel in the last six months or so about the valuations that we saw in the broader Venture Capital market, the private market, and clearly stories like uber and wework highlighted how some of those have become stretched. Whats it like in your subsector of the vc market in the space sector are all the companies youre investing in still loss making are some of them already profitable did you have a fear that valuations are a little steep . Yeah, so, the majority of the companies that are in new space are still at the stage that theyre unprofitable and the market leaders, the emerging Leaders Within the market are still growing to that profitable stage valuations are subject to supply and demand, so the sectors where theres a significant amount of interest such as launch, and such as the constellations, the new constellations, these are the areas that can see significant valuation and significant increases in valuation, as theyre being chased by investors. We believe that theres a lot of value in the downstream end of the market this is the end of the market where its the Data Analytics of this huge amount of unstructured data and the opportunities to use that data in these end verticals that weve talked about. That side of the market, the valuations are still very attractive likewise, the down link subsection, so this is the market thats taking the data down from space, down to the ground, and doing that reliably, doing it with evergreat volumes, and doing that cyber securely this is a really underinvested market and theres some fantastic valuations in this particular market. So it depends where youre looking within this overall market so, mark, were seeing were starting to see some public Market Opportunities for investors right now. Virgin galactic, perhaps being the most highprofile, having gone public here at the new york stock exchange, as the first commercial human space flight company. But in general, when you look at these new breeds, these new startups of Space Companies, how can investors get involved well, like many of the technology sectors, companies are staying private for longer, so we dont see an huge rush of these new Space Companies coming to the market anytime soon so really, the way to play this market at the moment, in order to get into the earlier stage venture opportunities that form the majority of the market is through venture funds like ours, is several spacefocused venture funds that can provide private investors exposure to this market theres only a limited number of quoted new Space Companies with Virgin Galactic being the latest to join the market, with a greater than 1 billion valuation. So some liquidity. Most of them are pretty Small Companies at this stage. So, mark, given all of the Different Companies that your fund has invested in right now, what are you most excited about . Are there specific names yeah. So, a range of the constellation companies that weve invested in are really exciting at the moment so one of our Portfolio Companies is a Company Called spire global this is a company that has miniaturized small sats in order to collect data about the weather. Most of the weather is formed in the oceans and this company has the largest constellation of weather satellites in the world. Currently it has more than 100 satellites in orbit. And through those satellites, it collects twice as much data as all of the governments in the world added together and this companies believes that more data will lead to them having more accurate weather forecasts. And we believe that theres a huge value in the accuracy of those weather forecasts. Whether theres a 1 billion market, we believe this company has a great opportunity to say a significant portion of that market theyre looking to actually ipo next year. Theyre one of the one of the leading companies in this market well, mark, thanks so much for joining us much appreciated youre very welcome weve got a news alert on uber Frank Collins has the details. Frank . Hey, there, wilf. Another toplevel uber executive now announcing that hes leaving the rideshare company. Today, chief product officer mana gupta announcing his last day listen on november 13th. He said in part, after a few discussions with dara, referring to the uber ceo, as well as with my family, and now that weve made it through the ipo and an important year for the company, ive made the tough decision to leave uber gupta joined uber from google in 2015 and became the chief product officer just last year and again, hes the latest uber executive to leave the company ubers ceo left the company in june back over to you Frank Collins, thank you. Thank you up next, retail results on deck home depot, kohls, and tjx are all reporting earnings tomorrow. The key things to watch, ahead and coming up on fast money, President Trumps former National Economic adviser gary cohn will join in an exclusive interview about his latest venture, as well as trump, taxes and his thoughts on the 2020 race 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. 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. Were on target. Blockchain on the ibm cloud helps pinpoint a problem anywhere from farm to shelf. Its used by some of the biggest retailers everywhere. A nice wedge. So more food ends up on your table, is that daddys lettuce . Yeah. And less food goes to waste. By the way, shes the it wasnext mozart. G day. And less food goes to waste. 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. Danafarber Cancer Institute discovered the pdl1 pathway. Pdl1. They changed how the world fights cancer. Blocking the pdl1 protein, lets the immune system attack, attack, attack cancer. Pdl1 transformed, revolutionized, immunotherapy. Pdl1 saved my life. Saved my life. Saved my life. What we do here at danafaber, changes lives everywhere. Everywhere. Everywhere. Everywhere. Everywhere. Welcome back according to new study, there are limited benefits to stents and coronary artery bypass surgeries in the treatment of art disease. Meg terrell has the story for us hey, meg this is for patients with whats known as chronic or stable Heart Disease millions of americans who may have a blocked artery but who arent experiencing immediate issues the study looked at whether galla implanting stents or undergoing bypass surgery worked better than Lifestyle Changes and found they didnt. The patients with chest pain, the more invasive procedures provided more relief boston scientific, med trtronicd abbott labs were closely watching the results many feared that stents led to worse outcomes so the results that they were no better and helped with chest pain were a positive you dont necessarily see that reflected in those stock prices, but many were worrying it could be a lot worse people were wondering it could show worse results than neutral. So whats the point . I get your point on the chest pain part of it, but that seems underwhelming . Well, the quality of life part is important, doctors tell us that if patients havecalled agi could be very helpful. But they were worried that they might have been worse, because there can be some complications with implanting stents and doing other surgery procedures so they were worried it could turn out worse for that arm. And in fact, it didnt they were about even and guys, its important to note that for patients who are having chest pains that last for a few minutes, doctors told us, those folks could be having a hard attack and this does not apply to them. These are just folks with stable Heart Disease. Important point to make, there. Meg terrell. Thank you. Lets send it over to mike santoli. Final dashboard of the day were calling this underestimated no more thats the economy this is citigroup economic surprise index something we check in on once in a while. Essentially, this is how the economic numbers are coming in relative to Consensus Economic forecast so obviously, things were not looking great here in august and september. The data was consistently falling short of estimates then there was this big revival. Forecast, forecasts get revised down thats why this goes up and down without necessarily reflecting the absolute strength of the economy. We saw that big uptick and now its all the way down again. We have a spike on the chart about neutral or actually slightly worse than neutral coming into this week. Data coming in, slightly lighter than forecast. Heres the thing because this is an oscillator and a dynamic situation, forecasts get revised up and down im interested to see in 2016, we keep going back to the example, we had a big recession scare, the market took off and economic surprises came back down but hey, thats around the summer of 2016 we didnt have much of a selloff and we were off to the races in 2017. Doesnt necessarily mean it tells you where the markets going, but no longer do we have people essentially overestima overestimating consistently what the economy will be doing. Mike, i know we were talking about this before, but the key theme to me that seems to be emerging from all of your different charts is that when you look at them, there is nothing that suggests a repeat of last christmas. No, there isnt i feel like we actually had our little scare, our nearmiss on an economic accident in august and september. The markets overaccounted for that now were coming on the other end of it. And i dont think were as vulnerable in terms of the market rhythms, either it doesnt tell you much about the next few percent, but it does tell you that i dont think that the fed is working against the market the way it was perceived to be last year, as well and the key theme, mike, from the dashboards subtitles today is, what, that you love the United Nations the United Nations, you could take that away from that, i suppose. Or simply that its a little bit of light, unimaginative word play there we go still, i like lets go with the u. N. Mike, as always i dont dislike the u. N i dont want to leave that impression mike, thank you up next, a gaming game charge google out with its new cloudbased video game service, but can it hold up against the likes of microsoft well discuss when we return its not just easy. Its havingjeromebettis onyourflagfootballteam easy. Go get em, bus ohhhh [laughing] cmon bus, cmon hey, wait, wait, wait hey man, i got your flag i got your flag, man i got your flag its geico easy. With licensed agents available 24 7. 49 nothing woo the amount of Student Loan Debt i have im embarrassed to even say i felt like i was going to spend my whole adult life paying this off thanks to sofi, i can see the light at the end of the tunnel as of 12pm today, i am debt free we have no debt, we dont owe anybody anything, and its fantastic every year, our analysts visit thousands of companies, in a multitude of countries, where we get to know the people that drive a companys growth and gain new perspectives. Thats why we go beyond the numbers. T. Rowe price. Invest with confidence. Google set to launch its cloud base video gaming system tomorrow josh lipton has that story for us reporter google officially flipping the switch tomorrow at noon eastern its new streaming game service the idea here that youre going to pay google 10 a month and you can stream these high quality graphics to your pc, tv and most pixel phones. No need nor a pricey game console. Should you sign up our own tech reviewer says not right now. Its fun and works well but lacks a big libor. Better wait to see what games launch next year remember theres competition microsoft is already testing its own gaming streaming technology too. Josh, how much in gaming today does it matter what console youre playing own versus just the bottom line of the game reporter well, i think the problem is here, wolf, that the problem to gamers and the reason they are excited is the potential of such technology is that you would be able to stream these complex graphics rich aaa games any time, anywhere now thats more limit high desert here with google. You will be able to work in a browser, play it on tv with a streaming device and most pixel phones there are some limitations 22 titles to start there are some notable titles like red redemption ii interesting how it shakes out. Promise of this technology has companies beyond google excited. Microsoft is pursuing it with project x cloud. We dont have a date, price or launch date but microsoft would be a real rival here microsoft has same technology as google, so it has data centers and the infrastructure to deliver this technology. It also has a long history in gaming its got the content been buying game studios has the rights to franchises like halo. Be interesting to see how this competition shakes out the gaming industry is taking shape and growing so fast right now and so many different angles to it. You touched on this but to dig into it further, how are Companies Like alphabet and microsoft working with the video game publishers. Is this a tail end or head wind for those publishers i think youre right. Big picture, listen. Big tech wants a piece of this market and for a very good reason its a tremendous opportunity. This is an industry that video Game Industry will see revenues of 174 billion. Different Tech Companies are getting into it in different ways how this works with publishers thats interesting you look at google some publishers made their content available. Like red redemption ii if youre an activision fan or call of duty that continue the tent is not available. For publishers its interesting on one hand theres excitement about this technology. Video game streaming is at any time future . On the other hand, what kind of puts and takes, what kind of sacrifices do you have to make if you team up with google how much do you give up in power of distribution, revenue share. Those partnerships will be interesting to watch josh lipton, thank you. Shares of alphabet finished down 1 but not before hitting an all time high back to special distribution in april of 2014 earlier in the session. Up next your wall street look ahead. Key things every investor needs to watch as we head into a new trading day when closing bell returns. 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. Itso chantix can help you quit slow turkey. Along with support, chantix is proven to help you quit. With chantix you can keep smoking at first and ease into quitting. Chantix reduces the urge so when the day arrives, youll be more ready to kiss cigarettes goodbye. When you try to quit smoking, with or without chantix, you may have nicotine withdrawal symptoms. Stop chantix and get help right away if you have changes in behavior or thinking, aggression, hostility, depressed mood, suicidal thoughts or actions, seizures, new or worse heart or blood vessel problems, sleepwalking, or lifethreatening allergic and skin reactions. Decrease alcohol use. Use caution driving or operating machinery. Tell your doctor if youve had Mental Health problems. The most common side effect is nausea. Quit smoking slow turkey. Talk to your doctor about chantix. Welcome back to closing bell. Shares of coty finishing higher. Announcing a partnership with Ky Kylie Jenner coty will acquire 51 in kylie cosmetics. The deal is expected to close in the Third Quarter of fiscal 2020 and guys, i want to note the jenners, owns, outright owns this company not like other celebrity or fashion or Beauty Brands where they licensed their name and image. A lot of money coming to the jennerkardashian family as you said, a way few else have done so successfully. Looking ahead of a slew retailers set to report tomorrow reporter home depot reports. Well listen for specifics about impacts of tariffs and lumber price deflation. Home builder confidence slipped a point, though remaining in positive territory kohls also reporting tomorrow were hoping to hear details about whether its seeing a boost in foot traffic and sales by accommodating amazon returns and, of course, the allimportant outlook for the Holiday Shopping season. Well listen for similar details coming out of tjx. That companys shares are up 32 yeartodate a good run especially compared to macys which are down more the than 40 guys thanks so much for that. So retail reports to come throughout the rest of the week. Mike, as we noted after retail sales on friday earnings going to be enough to move the dow in a serious direction. Home depot of all the bellwethers out there for the domestic economy went into this at a new all time high i think thats a sentiment for housing, more broadly for retail three weeks into their quarter but six weeks into the Third Quarter of the calendar year what they say about the pace of consumer activity, i think, will have a little bit of an impact on how we think about the path of ecom. In term of Economic Growth forecasts for the Fourth Quarter how important are what these companies have to say about the Holiday Shopping season its pretty important because youre seeing those estimates get down below 1 . The intra quarter estimates. It will matter a little bit. Less so for the indexes but for sentiment. Were out of time fast money begins right now. Live from the Nasdaq Market overlooking times square this is fast money were join by head of technical and Macro Research tonight on fast President Trumps former National Economic adviser gary cohn joins us to talk about trump, taxes and block chain. Snap ceo taking a jab at the competition in a sit down only on cnbc. Who will come out on top in the social media