Transcripts For CNBC Closing Bell 20240713

Housing data rebounded with Building Permits at their highest levels in 12 years we are set once again for record time close on the nasdaq anything positive, of course, is a record the s p has just dipped negative the dow has been negative for most of the afternoon. Joining us for the full first hour of the show, steve weiss from short Hill Capital Partners steve, very good to see you. How you doing . Good to see you what stands out as to whether or not were going to issee a meaningful move higher or lower . Its all about trade. Home depots announcement aside, which wasnt terrible wasnt terrible or was terrible was not terrible. And the stocks appropriately are saying, theres lots of people buying it into the earnings. And home depot, lets face it, theyve delivered remarkably over the last decade, particularly since new management came in but i dont think its really a referendum this report on the health of the consumer, which is what the market is based upon. And appropriately, were barely down today, relative to how weve moved higher the other issue is trade now, i think it would be fair to just look at trumps announcement today that if you dont make a deal, were going to come with really high tariffs, his deflection from the impeachment hearings that are going on so i dont think its pure coincidence that every time theres news, that he comes out with something to deflect. What most politicians would do so, look, it still turns on trade, most of the phase i, whatever thats going to be is in the market. Well have a little more upside now, once they announce, but i think its more of an overhang so seasonally, we are in a great spot the market should trade up through the end of the year. As we get into 2020, and as we have more clarity on who the frontrunner is going to be for the democratic nomination, thats when it can get a little dicey. Also, ive heard so many people come on our show, halftime report, come on this show and others, earnings have bottomed well have great Earnings Growth next year, i dont know that you can bank on that so maybe all we need is just a bottoming of earnings. But the market is taking its cue from steepening yield curve and saying that that, in fact, shows that the economy is better going back to the earnings picture and specifically, the retail wreck, the Retail Sector on pace for its worst day of the month of the disappointing earnings that we go from home depot and kohls Courtney Reagan has the details. Court . So both home depot and kohls did report disappointing sales and both lowered their fullday forecast i spoke to richard macphail, who said, we are absolutely not seeing softness with the consumer we think the consumer is healthy. And he said, how the housing environment is healthy and stable macphail said that the lowered guidance by home depot, only a reflection that theyre taking their time to roll out the initiatives. He said home depot is already getting about a half a point of comparable sales increase as a result of some of those initiatives, like its new website for pro customers. But its had to roll out those sites features a little more slowly than previously planned meantime, kohls comparable sales grew slightly after falling 3 gross margin did fall and aforementioned they lowered their forecast, too. Ceo michel goss told me on the phone, i am absolutely convicted we are will return this business to profitable growth, though kohls hasnt officially laid out its 2020 guidance quarter. They cut prices because of very warm temperatures, which hurt sales of cold weather items, and a competitive environment that intensified. So goss says that kohlsneeded its guidance Going Forward to make the necessary investments it might need to make to increase Current Customer loyalty and capture new shoppers wilf, back over to you thanks so much for that summary. Consumer sectors are towards the bottom of the pack energy, only one lower today lets send it over to mike for todays market dashboard heres what we have for ahead for you. First of all, can it long endure, it being this calm, very orderly rally we have hovering near alltime highs. And never forget how far this market has come. Weve hit something of a landmark, very longterm landmark for the s p 500 and then union or division activist investors, often a divisive approach to how to extract value. Theyve had a rough time of it and unfinished work on housing a look at housing sector and overall economy. So first of all, take a look at a couple of glimpses of how calm and wellloved this rally has become the threemonth s p 500 realized volatility this is the average actual volatility shown by the s p 500 has really hit kind of the bottom end of a twoyear range right here the onemonth measure of this is actually a little bit more dramatically lower so usually when you get very, very calm, it sometimes marks the approach of a turn this was back in july. You saw something similar. However, i want to point out, look at how low we stayed through 2017 it was a very calmly uptrending market the entire year we did not have many gut checks in that market and much, much lower realized volatility. Theres no absolutely level at which this is a warning or an allclear. Take a look at sentiment towards very large tech and Growth Stocks the nasdaq 100 this is the daily sentiment index, so basically, traders establishness relative to this index. This is a percentage of bulls right here thats about the 90 level you can see, its pretty heavy right here and ill point out a couple of places where this came into play it doesnt mean its an absolute top, but it means the gains from here sometimes are harder to come by and maybe get reversed down the road. Something to watch with the market is perhaps running a little hot in terms of the mood of traders mike, thanks so much for that well see you again a little bit later. For mow, lets bring in mad moneys jim cramer for more on todays market jim, how you doing good to see you . I got 171,000 people around me so how could i not be happy . I even have some of my favorite mascots with me. 171,000 people and one cat, if thats a cat or tiger it looks like game day. Game day. The super bowl has nothing on this thing its an extravaganza of intelligence well, jim, we want to get some of your insight about what youve got coming up from there in a moment. But firstly, we were just discussing some of those consumer names are you concerned about the outlook for the u. S. Consumer following a couple of those Earnings Reports this morning . No. Remember, rooer still in the wake of walmart, which is twag a lot of share and walmart had an absolutely spectacular quarter with 275,000 people going through i still think costco is good i think target will be okay tomorrow home depot had some pacific tech issues that are worrisome. But overall, theyre strong. The one that im most concerned about is a company that has failed and failed and failed in the last couple of quarters, which is kohls. And, you know, ive got to tell you, thchis was a particularly miserable quarter and i did not like the way they portrayed of it as being a great quarter. Just admit that instead of being convicted that youll have a better quarter by the way, it should be convinced well have a better quarter. The only people making it work are offprice and online who is kohls . Who is kohls . Thats what we dont know. Jim, are you surprised to see names like macys and nordstrom down macys down 11 . No, theyre there havent even reported theyre analogs theyre brick and Mortar Companies that are searching for an existential clearing. They dont know. Its serts meet camu and when you start going down that path, this is what you get. Who is macys . Who is nordstroms i know who kcostco i know Doug Mcmillan i dont know who kohls is other than a company that starts its Conference Call by saying its doing well well well . jim, just quickly, overall valuations as we sit here at these record highs once again. Are you content with the level of the s p 500 multiple . I hate to default, but what else are you going to invest in. I actually see, by the way, some car numbers of europe that were very good. I think if you get away from some of these smaller retailers, youve got to be pretty happy. And if the president just decides that hes going to take that he hates the chinese and they wont even buy our pork or our bacon so were taking things up to 30 , well have a 5 to 7 hiccup i want you to have cash so youre ready to buy stocks like square that we just saw earlier this morning like nvidia thats come down from its highs like theres some of my buddies salesforce another one which, by the way, i love disney, but does disney have game like this this guy went to stanford. This gi went to stanford this guy went to berkeley. This is a comppsy major and got a 37 on his a. C. T. S. I dont think ive ever seen anyone bring more energy to the screen than you, but whoever is dressed up as a cat behind you, he must be sweating inside hes the greatest code writer best code writer in america . Perfect. Perfect. I love it here, wilf we look forward people are happy here were not happy were happy here, too were happy as well. Jim, great stuff yeah, youre faux happy no, definitely not. Definitely not anyway, mad money tonight, big, big lineup. Thank you, guys from San Francisco with jim including salesforce chairman marc benioff, Gary Friedman, many, many more. You dont want to miss that. 6 00 p. M. Eastern time peanut, we hameantime, we hs alert on a key funding vote. Reporter the house now has the votes it needs to pass a bill that would keep the government open through december the 20th the current vote tally is about 231 in favor, 188 against, 12 republicans so far voting with democrats in order to support that bill. But this vote is still ongoing remember, this is a shortterm bill that would keep funding levels exactly the same. After it passes the house, the senate is expected to take it up before the government runs out of money on november 21st. After that, President Trump would have to sign this bill, as well but fundamentally, guys, this just moves the funding fight from before thanksgiving to before christmas back over to you ylan, thank you very much for that we have got 58 1 2 minutes left to trade and we are set for a record alltime closing high on the s p and the nasdaq, but not the dow. Still ahead, the debate over taxing heats up after Lloyd Blankfein responds to elizabeth warrens tax proposal. We shouldnt have unworkable, demotivating kinds of taxes that will achieve equality by reducing everybodys level of wealth ahead, well speak with former treasury secretary Larry Summers about his take on where tax reform should start. And later, the doj making moves in the movie industry. Explaining a rollback of owns bars from owning theaters. Well discuss that with antrt hie tiusacevMakan Delrahim its another big interview you do not want to miss. Stay with us iverless 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. At fidelity youll pay no commission 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. [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu welcome back to closing bell. Time now to get word on the street bank of america giving a bullish outlook on googles new gaming service. The firm sites lower financial barriers for players and the Service Increasing the reach of consult games for its outlook. Moffett nathanson says it doesnt expect at t will make the market start paying attention to the stocks fundamentals once again, its down 3. 7 investors continuing their bet on bigtech stocks new notes from Morgan Stanley, Goldman Sachs, and citi on Institutional Ownership and Hedge Fund Trends show the biggest investors bought apple, facebook, amazon, and alphabet during q3. Steven, what do you think of big cap tech right now i mean, we just had that chart up from mike santoli in the last block, as well i like it overloved i dont think its overloved at all hedge funds just arent that dominant, they never were. We talk about them a lot, but theyre less dominant now. I like the tech because its a momentum market. Its a market thats worked on multiple expansion apple has had down earnings, down revenues. But the stocks up 60 why . Not because the fundamentals are so much better, but because the markets going for those names and then if you put up good performance like microsoft, its even better. So i think big tech continues to move higher. Google, amazon, theyre part of big tech i own them both. Im less optimistic about them i dont see anything wrong about them, but theyre in the headlines constantly, and along with facebook, which i also own, they dont stop. They keep going for more and more dominance basically, the headlines will continue, overhanging stocks will move up marginally as fundamentals work out, but i think the less controversial names will do better all right still ahead, spacex and blue origin among a new crop of Companies Getting the green light from nasa this week to bid on deliveries to the moon. Nasa administrator Jim Bridenstine joins us in the latest installment of our watch this space series to discuss and after the break, former treasury secretary Larry Summers is here to break down one way he says the federal government could collect more revenue without even needing to raise taxes. Were back in a couple minutes for every dollar you spend at a Small Business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. Oh, ho oh, ho, ho, ho you. You got me. Uh, what do you want . Ive got uh, ai robots, ive got vr goggles. I want your sled, please. No. [ chuckles ] timmy. Itd be a shame if this went viral. For those who never compromise. The mercedesbenz winter event. Whoa. He was pretty good this year. Servicenow put our this changes everything. Youre right sir. Everything. No not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. people talking for every dollar you spend at a Small Business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. Welcome back to closing bell. Former Goldman Sachs ceo Lloyd Blankfein sitting down with cnbcs scott wapner today to weigh in on the wealth tax debate as plans like senator elizabeth warrens has kbgained the attention and ire of wall street at the end of the day, i recognize the Great Success of the Wealth Creation machine and the less successful part of the Wealth Distribution machine, and so we can respond to that with progressive taxes. We can modify our estate tax, but we shouldnt have unworkable, demotivating kinds of taxes that will achieve equality by reducing everybodys level of wealth. Joining us now for his reaction is former treasury secretary, Larry Summers, who is out with an oped this week, advocating for strengthening Tax Compliance thanks for being with us today what is your thought on the wealth tax and what are you proposing in this oped that would be a better solution look, i think the place we should start is by collecting the taxes that are owed under current law, but not collected that will be some 7 trillion over the next ten years. We cant get all of them, we cant get most of them, we cant get half of them, but i submit that we can get 15 of them. And thats 1 trillion over the next ten years and i think thats where the tax debate ought to begin. Its not where it ought to end theres a lot we can do else to increase progressivity we need important reforms in the Capital Gains area, so that Capital Gains dont entirely escape taxation when theyre passed in the context of estates or when theyre transferred to charity weve got abuses in the corporate area, particularly involving foreign income weve got the continuing scandal of carried interest. So theres a lot that we can do starting with compliance and thats, i think, where the debate should have its initial focus. Things like carried interest, mr. Secretary, clearly is requiring of a law change to get rid of it. What about simple tax evasion . Is that a large part of what youre saying has been uncaptured and whats it down to and how is it resolved in order to address tax evasion, theres a bit that the irs can probably do on its own, but fundamentally, we need, will need a higher appropriation for the irs. It doesnt make any sense that we have shrunk the irs relative to Tax Collections by almost half over the last decade and not very surprisingly, our enforcement revenue and our enforcement efficacy has come down as weve done that. So restoring the funding for a decently function iing irs, addressing the situation that i think would seem unjust to almost every american, where people who get the earned income tax credit, none of whom make more than 50,000, are as likely to be audited as people with incomes over 500,000 a year. That that can be true, while the irs directly measures that every hour, one hour of audit labor spent on taxpayers with incomes over 5 million generates almost 5,000 in revenue. And thats before you take account of the fact that if people know theres going to be more auditing, theyre going to be less prone to cheat so if we simply dont try to crush government, but try to fund government, not in some new, exotic, Big Government way, but essentially in the way it was at the end of the day of the george w. Bush administration, we can generate very substantial revenue along with using modern technology to target that enforcement in better ways yeah. And certainly the irs, i dont know if youve been to their website lately, they could use a little modern technology for sure why do you think this hasnt been a bigger part of the conversation and how likely do you think it is that we actually see some of this fund ging go to that agenc, given the fact that congress as we speak is in the process of pushing through another resolution it cant even get the fiscal 2020 budget appropriated i think there are probably too many voices in Congress Whose idea of low taxes is enabling people to not pay taxes they legally owe and who want to have an irs thats effective in enforcing the tax code and i think thats very unfortunate for our country. King there are some issues around congressional budget procedures, seems to me that if you hire more auditors and you spend 100 and you bring in 700, that that ought to show up in the budget, like youve made 600 and reduced the deficit, rather than as it does under current law, like youve lost 100, because youve spent more. Those congressional budget procedures should be looked at will this happen i cant predict. I certainly think that it should happen and with the right president and with the treasury secretary prepared to invest in this issue and office of management and budget prepared to make the case, this seems to me to be the lowesthanging fruit in terms of raising taxes from relatively high income, people without introducing new distortions or raising tax rates or placing new burdens on the lawabiding. Who is the right president . Oh, im supporting a democrat and i think there are a number of very strong candidates on who the democratic on the democratic give us a couple i think Vice President biden did an extraordinary job as Vice President and as the kind of temperament of inclusion that a badly divided and fractured country needs right now. And i think hes put forward sensible, pragmatic, highly progressive programs, far more dramatic than youve seen in an past campaign on climate change, for example. Very ambitious on making the tax system more progressive. And on making sure that the promise of universal health care is really delivered. But at the same time, not declaring war on elements in our society that provide a large fraction of the jobs and that are necessary for our competitiveness. So i think that kind of approach that starts with the middle class, the very awareness of fairness, that doesnt engage in economic vilification as a strategy is the right kind of strategy larry, you tweeted recently that the combined tax impact of elizabeth warrens various plans is extreme so which part of the plans would you keep and what would you get rid of oh, i think i would rather start with my own plan rather than pick and choose you know, essentially, what senator warrens plans do as i read them, is they go through every option that has been selected as the possible strategy for raising progressivity and tries to do all of them at once. And when you try to do all of them at once, youre collecting essentially about as much taxes as the total aftertax agi, adjusted gross income, of all the millionaires and i dont think that taxation approaching confiscatory is remotely feasible. And if it was tried, would have catastrophic economic consequences mr. Secretary, thanks for joining us thank you its time now for a cnbc news update Contessa Brewer has it for us. Hi, contessa wilfred, heres whats happening right now. The world against toys causing harm has unveiled its annual list of the most dangerous toys on the market. A realistic toy machine gun, a nerve dart gun, and a plastic Power Rangers claw are among the toys topping the list. Amazingly, were still finding products like this now, i want to be very clear, what im holding, i know what it looks like and it looks like a gun. It does not look like a toy. It is sold as a toy. To children. The city council in columbus, ohio, has approved a 450,000 settlement to adult film actress Stormy Daniels she was arrested and charged with three misdemeanor sex offenses, allegedly for enappropriately touching an undercover female officer. Daniels sued after those charges were dropped a copy of the mona lisa has settled for more than 600,000 at auction, more than six times the expected price it went for sale at sothebys auction house in paris an art expert says the copy was probably painted a hundred years after the original thats a lot of money for a copy and you know what, they still dont know why shes smiling morgan you said it last week, 100,000 was a lot for this copy. Yeah. 600,000. Thats quite a bit of money right here you dont even know who painted it, you just know it wasnt the original painter with an iphonexr, take a little photo of the original and thats for free. You dont have to stare at it with all the crowds, i guess theres that. Contessa brewer, thank you weve got less than 30 minutes left to go here. Here are the three things that are driving the action today President Trump threatens higher tariffs if china does not make a trade deal retails getting crushed. And while that might be a red flag for the u. S. Consumer, housing data rebounded with Building Permits at their highest level in 12 years. Today marks one week from the launch of disney plus and there have been reports of hacked users. And u. S. Treasury yields slipping today for the second time this week, with the tenyear yields now under 1. 8 closing bell will be right back welcome back weve got 25 minutes left to trade. Lets get over to mike for the second installment of todays dashboard. This time, were trying never to forget exactly how far the stock market has come over this long number of years, especially during this bull market. Look at a 20year chart of the s p 500. Something kind of significant is perhaps on the verge of happening, which is a doubling in the s p from its prior peak right here in 2007, october 2007, peak in the s p was 1565 times two, its 3130 todays high, 3127 obviously, pretty steep angle of accent but if we had this going from 2000, it would look similarly steep from a similarly low base. The peak in 2000 was only a few points below that. Essentially, you had a flat line, a cyclical bull market and then we got to double there. Is that going to matter . Is this really a technical indicator . Some folks suggesting maybe theres a muscle memory to the market the russell 2,000 was capped at twice its peak i want to drill into yields started going up and stocks caught up look where we are, on a sixmonth basis, stocks right here, bonds, longterm treasuries have come down a little bit in price, but now theyre kind of going up in concert, kind of as they did for the first half of this year, into july, anyway. It looks like yields are getting a little bit lower than a lot of stock bulls would like, but not yet at a critical threshold just yet. Mike, thank you so much for that steve, whats your take on that kind of tradeoff at the moment. And how important are where yields are well, there are two things. First of all, there are half as many publicly traded stocks right now as there were 15 years ago. So you have the scarcity effect, thats helping such an incredible stat it really is it is incredible. And continuing, m a continues. In terms of bonds and stocks, there are only three periods since 1950 where stocks and bonds were down the same year. More often, theyre up in the same year. So its not anything aberrational that were seeing, but the performance of both. In terms of the numbers, i dont think it means all that much its not where stocks have come from youve got to focus on where theyre going and whats going to get you there i think for now, were fine. You mentioned m a lets talk a bit more about that u. S. M a deals above 5 billion have soared this year. 26 higher year over year, after hitting record levels in 2018. One bank capitalizing on renewed enthusiasm is rbc. Joining us now from the rbc tech internet and mediacom conference is larry blankstein. Nice for you to join us. Nice to see you so bill deals are up year over year, though small deals in the u. S. Are not and internationally, whats the outlook. Summarize where we are so far yeartodate yeah, its really interesting. Its a bit of a bifurcated market we like to segment the market among the bigger deals that you mentioned, very robust this year dollar volume up yeartodate at 25 plus in the u. S. But total dollar volumes only up 4 and thats because deals under 5 billion have been down. And when you look at europe, facing its own types of challenges with negative Interest Rates and some political issues in certain markets, european largedeal volume is down almost 50 , year over year. And so when you look at the global m a volume in total, total dollar volume is down about 8 or 9 . But its been the u. S. Big deals, which, you know, many of which have happened the first few months of this year, that have been driving total activity larry, whether its m a activity or Companies Going public, how much hinges on the president ial election next year and what does that mean in terms of the window . Sometimes, these president ial elections can have somewhat counterintuitive effects for example, we feel like its a very good deal environment right now. Obviously, alltime equity highs. Good time to sell a company. Also, near alltime debt cost lows good time to invest in a company. But when you look at 2020, obviously, theres a big dispersion of potential policy outcomes between the Current Administration and possibly, you know, a Democratic Administration and you were just talking to Larry Summers about tax reform and if you look at 2020, as we approach the new year, you know, Companies Look at what might happen with tax reform, you know, would Capital Gains rates go up to equalize income, as some have suggested, would total Corporate Tax rates go up as some of the president ial candidates have suggested. How would the regulatory regimes in Different Industries and certainly antitrust enforcement, how would that differ from, say, this year to the next administration. And if you believe that theres a chance that there could be, you know, a difference and you have a strategic move that youre interested in making, you know, it may be necessary to think about executing on that in a 2020 time frame. And as you all know, you know, you cant just sell a company in two months you have to theres lead time for these things we might actually see a bit of an acceleration of activity, you know, in anticipation of a political change larry, how often does the china trade issue come into your conversations with ceos, in terms of whether they think tariffs are limiting what theyre able to do, if they stay for a long period of time. Is that a factor, or do they look way past that well, its a great question i think most Corporate Board rooms that were talking about these issues, theyre concerned about the effects on supply chains thats more of an internal issue than really the deal environment. China inbound m a is obviously off considerably you had a little bit of a, sort of, robust period there in 2015, 2016, before the chinese themselves sort of pulled back, and just given the overall environment with issues around huawei and the trade discussions, its not a great environment for chinese activity that said, we just had the Vice President of alibaba at our conference for lunch and he was laying out pretty optimistic perspective about the future of u. S. chinese relationship. And also the opportunities they have in the domestic chinese economy. So i think its an important topic because of the uncertainty and also the potential shifting of things like logistics and supply chains and suppliers, but in terms of the longterm macro effects, its people are not really viewing that as a driver of deal activity and certainly, people arent really looking to invest in china, per se, right now all right larry, thanks for joining us today. Ill tell you where they are investing right now. Theyre involved in three different chinese situations where Chinese Companies are acquiring u. S. Listed Chinese Companies. And in some cases really ripping off shareholders, because they own a controlling block and they control the board and theyre just saying, were buying this too bad, come sue us and were suing one right now. The second Largest Car Rental Company in china, you know, you had management and the family said, well buy it 1350. And they said, wait a second well own 25 and sit on the board and well pay 1550 they got together and bought it for 1225 and its worth 20 so you see more of that happening, which the s. E. C. Is taking notice of well have to see whether the correct legal processes arise in the future weve got much more, by the way, ahead from the rbc krmpbs that we were just joined from, including maka delrahim from the department of justice about the antitrust and the dojs move to terminate longstand rules for Movie Distribution and weve got your last chance trade and steves looking at one raietler thats up nearly 70 so far this year stay with us dont get mad. Get e trade, dawg. 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. 14 minutes left to go here in the trading session the s p is up one point right now. Steve, whats your last chance trade . Target. Tonight typically do theyre reporting earnings tomorrow i own the stock. Its been a nice gain. Didnt get all 70 , but i added to it this morning i think its a market share gain levee what cornell is doing, like cramer said targets my lastchance trade. There we go thats a pick for steve ahead of earnings tomorrow. And dont miss an exclusive interview with the target ceo, brian cornell, after the retailer reports earnings tomorrow morning on score box, 6 30 eastern time. Up next, well bring you uninterrupted coverage of the final miteofhe tdenus tra and well take you inside the market zone when closing bell returns. Ozart. 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. Woi felt completely helpless. Hed online. My entire career and business were in jeopardy. I called reputation defender. Vo take control of your online reputation. Get your free reputation report card at reputationdefender. Com. Find out your online reputation today and let the experts help you repair it. Woman they were able to restore my good name. Vo visit reputationdefender. Com or call 18778668555. You should be mad your neighbor always wants to hang out. And you should be mad your smart fridge is unnecessarily complicated. Make ice. Making ice. But youre not mad because you have e trade which isnt complicated. Their tools make trading quicker and simpler so you can take on the markets with confidence. Dont get mad get e trade and start Trading Commission free today. Just under ten minutes left in the session were now in the closing bell market zone, commercialfree coverage of all the action as we head into the close. Cnbcs senior markets commentator mike santoli is here to break down these crucial moments of the trading day and today, weve got steve weiss from short hills Capital Partners here as well. Were going to start home depot. The stock plunging today, on pace for its worst day in more than a year after missing revenue estimates and cutting its 2019 sales forecast, saying it would take more time than expected for its investments to pay off. Home depot ceo craig menear pushed back on the notion that home depots guidance cut was a result of macro pressures. When we look at what happened in discretionary spend categories, particularly that are highticket discretionary spend, we dont see anything there that concerns us at this point. Mike santoli, i mean, its been a bloodbath for Retail Stocks today, even names that havent reported earnings yet are selling off pretty steeply yeah. How much of this is home depot specific how much of this is consumer i think its not real consumer i think its home depot, and more to the point, kohls. I think the market as a whole is taking those comments almost at face value saying, this is not a macro story, this is not consumer fatigue it is, one, home depot, which is a crowded stock that went into this at an alltime high thats a little repricing based on all of those tactical dynamics kohls, not a good number, dragging down Department Stores and challenged structurally declining mallbased stores. Whats amazing about this is that ceos dont usually take the hit. They say, oh, it was a macro environment. And here, its a ceo saying, were just rolling out, you know, these changes a little more slowly. So, i agree with you, i think we got a little too frothy. Kohls, for as long as ive been around, that company, its always been a question, are they going to survive you see changes there moving slow as i said, i prefer target and mike, the Consumer Discretionary sector itself is off its lows today if you get away from as i said, those kind of beaten up, mallbased retailers, which have a small market value, lets remember, its obviously not spreading beyond that. Seven minutes or so left in the trading session. Qualcomm holding its Analyst Meeting today in new york. Lets get to jon fortt who spoke with the companys ceo jon . Yeah, wilf, the stock struggling a bit, down not quite 3 on a day when the company is really focused talking about growth ceo Steve Malakoff telling neme that the size of the market that qualcomm will be able to address will grow in three years it goes a dramatic amount in three ears it gives you the sense of how important 5g will be to qualcomm business and the total amount of Economic Impact of 5g in 2035 will be 13. 2 trillion so 5g is going to be an important thing. You know, qualcomm really does not have an opportunity problem. And qualcomms new cfo also breaking out for the first time how much revenue its getting from platforms beyond the smartphone think cars, pcs, iot 3. 4 billion in fiscal 2019, compared to 11. 3 billion from phones, guys it was a great interview, jon, on squawk alley earlier today. Thanks for bringing it to us steve, where do you stand on qualcomm and i guess even more broadly, just how big is the opportunity in 5g or have investors gotten their arms around it ive done a lot of work around 5g and i did read qualcomms report, qualcomm has a great position there, but i own the smh, which is the semi index, i own sky works ive seen other forecasts that say the spend just over the next two to three years is going to be 3 trillion for 5g. Put it this way. You cannot have Autonomous Cars without 5g because you need the lack of latency. And youre running out of capacity in your 4g networks, so 5g expands it by a hundred fold. Its ten times as fast so i think qualcomm is right in the sweet spot, as are many of the others so its a great space to be in excuse me moving on, its been one week since disneys new streaming service, disney plus launched, and some User Accounts have been hijacked, according to reports user account information like emails and passwords began appearing on the dark web just hours after the service was rolled out and were being sold for as little as three bucks disney responded to the report saying, it takes the privacy and security of our users data very seriously and there is no indication of a Security Breach on disney plus meantime, Credit Suisse out with a note saying that disney pluss launch has had little to know impact on netflix user trends one week in. Mike, i guess a couple of these at least reported and denied teething problems, but the numbers remain enough to protect the market and both of those problems are actually reflections of extremely heavy demand and real quick uptake by consumers. So, right now, its not about how many people who want disney plus are actually paying the monthly fee. Its how many want it in aggregate, how many are eventually going to get it, and the netflix side, i dont think thats too surprising that people didnt rush out to immediately cancel netflix the question is, over time, does it create more churn does it really mean netflix is pretty much at domestic saturation in terms of subscriber levels. Thats a longer term issue why would you cancel netflix when youre getting disney plus for free a lot of people are. Im going to go on record here i love free and will do a lot of things for free. I own the stock, i like it shares of slack are down 50 from their alltime highs. Lets get to leslie picker for more on this story today its sinking about 8. 5 on largely on competition concerns. Microsoft reported it currently has 20 million daily active users on its teams product, which completes with slacks product that had about 12 million active daily users in july microsoft has been able to quickly ramp up its users base, because companies that already subscribe to office 365 get its Team Messaging service for free. Slacks growth depends more on converting unpaid users to paid users, which can be a harder hurdle, analysts say twoandahalf minutes to go. The nasdaq is still higher, but the dow and the s p just lower mike, youve been looking at the internals. Overall breadth is about even, but look at the new highs versus new lows. New York Stock Exchange and nasdaq, theres still a kind of stubbornly high number of new 52week lows, more than 100 on each, the nyse and the nasdaq. It doesnt necessarily mean that the overall market is going to roll over, but it does suggest theres an undertow down there a lot of energy in retail, a stealth pullback happening and the russell 2,000 is on the verge of breaking above a longterm ceiling. Lets send it with Rick Santelli look at an intraday of twoyear note yields we are now unchanged on the day. Out to the long end, 30year bonds are down five basis points and thats off the low yields of the day. Finally, lets look at the tenyear, if you start at the third week in october, you can clearly see, were getting very close to testing some of the lowest yields for november and this is despite the best permits at 1. 46 million seasonally adjusted analyzed units in 12 years. Now well go to the nasdaq and frank collin, where we are now up month to date close to 3. 5 hey, there, rick. Lucky number 13 on the nasdaq. Another fresh record close amd, the biggest gainer, seeing a more than 3. 5 gain. Also broadcom, up more than 2 after a Morgan Stanley upgrade, but chips overall down very slightly great day for biotech, however that etf up 2 vertex, the best performer after a guggenheim upgrade were also look at altria. Those shares down more than 2. 5 today, after the new York Attorney general announced it is suing juul for its marketing practice towards minors. California announced a similar lawsuit yesterday. Altria owns a 35 stake in juul, and its shares have fallen about 18 since the first vaping illness was reported now over to bob pisani at the new York Stock Exchange. The entire decline in the Dow Jones Industrial average is due to home depot. More than 90 points of that decline is due to that s p 500 were taking bets on whether we can get into positive territory. Its exactly flat, down a fraction of a point right now. Well see if they can do that. Its been trending up in the last couple of minutes the dow jones is down 100 points good afternoon. Welcome to the closing bell. Im wilfred frost. And im Sarah Brennan along with mike santoli. Lets check in on how the markets closed the nasdaq, another fresh record alltime closing high. The dow down 100 points, selling off a little bit into the close, as you can see not too far off the lows of the session, which was down 141. Also and the energy the worstperforming sector. Health care, the best. Volatility was low, the s p 500 now hasnt moved 1 in either direction since october 11th, just to give you a sense of the types of moves weve been seeing in this market. Joining us to talk about the market day, steven weiss, founder and managing partner of short hills Capital Partners is still with us, along with charlie brezinsko head of investment at aerial investments. Mike santoli, though, lets start with you taking a little breather off of the record highs weve skraccrad or clawed on to. Really trudging to marginal new highs in the last few days the market does hold together on the index level. I think thats one of the takeaways. The other, there are excuses to sell off the president had some further static on the trade wars and all the rest of it i dont really think you can draw too many conclusions, but you are seeing some wear and tear as i mentioned, a lot of new 52week lows a little bit of fatigue evident in parts of the market, but right now, its just being kind of solved through going sideways as opposed to pulling back charlie, would you take profits for this year at this stage . No. No theres still great value in value. Mike just said that there are pockets that are hitting new highs and value is finally starting to catch up versus growth we think next year is going to be a much better year from the economy. We think were finally going to get a trade deal, which will be great for some of these cyclical stocks so now is not the time to be sellinging 12 p\e stocks, because the s p has a lot of 20 times stocks so the question to you . No. I mean, youre seasonally in a great spot with the market moving higher. Youve got a coordinated, synchronized, global easing. The feds on hold. So, why would you do it . Theres nothing out there right now other than the risk that a chinese deal does not get signed and that we ratchet up the tariffs, which you have to have a view on, to be in the market my view is that we keep kicking the can down the road, perhaps we sign it, but nothing dramatic or traumatic is going to happen. So im keeping my chips in now, having said that, i did sell the xbi, so its only natural it traded up nicely today. So biotech right, a biotech index, like the ibb that we showed so i think you have to be somewhat disciplined as an investor and take profits where you exceed your price targets, rather than having a higher price target like we see the sell side often do the nasdaq at a record high again today at the close but the russell 2000 still trading below its record high reached last year. A new note from bank of america is bullish on small caps, saying the u. S. Market is about to enter a recovery phase and the small cap leave large caps 90 of the time during this phase. The russell has obviously lagged for quite some time, plagying a little bit of catchup of late its trying and its very much in tune with all the other calls and all the other messages that the market is trying to send, which is, cyclical stocks doing better, financials doing somewhat better since august and even global stocks doing better that tells you the market is attempting to handicap an upturn, a reacceleration in macro growth if that were to happen, the russell is right there, ready to ride along with it i do also think that small caps are usually cheaper than large caps, but now theyre even cheaper than they usually are. Given the fact that we have seen something of a rotation into value in recent weeks and given that underperformance weve seen in small caps, would you be making investments here in this part of the market absolutely. And in full disclosure, aerial, my firm, is famous for small cap investing. This is when we get very excited. Over the last hundred years, finance professionals have po t pointed out that small cap tends to outperform large cap and value outperforms growth and the last ten years has been this extraordinary anomaly and as a result, we think small cap is very well positioned, particularly Small Cap Value charlie, where are you on some of those Financial Services companies youve recommended to us in the past not the banks, but private equity, Asset Managers do you feel like theyve run up enough thanks, wilf, for pointing that out i mean, blackstone made an incredible move this year, up almost 80 , 75 , when they converted into a c copper from a partnership. Kkr is still attractive at only 14 multiple. The name were pounding the table on is Lazard Lazard is trading at ten times earnings because m a is depressed, emerging markets hasnt kept up lazard at ten times earnings, its still a partnership, it cant be owned by a lot of the index funds. Thats the name were pounding the table on lets send it over to bob pisani for a look at todays biggest movers bob the big thing here was, home depot is the main reason the dow was down almost 90 points, the home depot it had all sorts of ripple effects on the retail space, everything, big lots down 6. 5 bed bath and beyond, bbby also had a very weak day. Dillards, the same situation, all the Department Stores, also weak this is what we call the nightmare for the brick and Mortar Stores overall. Inability to grow, you have soft traffic, and you have little or no sales growth. A lot of these companies having the same problem, so not just a particular problem with kohls today. Guys, back to you. Steve, in addition to home depot, shares of boeing weighed on the dow as well, started the day higher, then we got some more negative headlines tied to safety for the 737 ng, i believe it was, aircraft youve been a shareholder in this name. Your take . Yeah, and i was on the show on a day when all the bad news came out and traded down 320 or 330 and i said, step up here i think you can still step up here theres only two competitors, airbus and boeing. And airbus couldnt even meet their delivery schedule. Im not worried about people getting on the plane, on the max. Thats going to be the safest plane out there with all the eyes on it thats a bet the company type of plane. So, look, i still think you can buy boeing here. I personally have enough of it, so im not buying anymore. But, sure, its a great stock. Id own it mike, we bring up this point a lot, that when yields dont rise on the long end, the market strug struggles. Applies again today. I have to say, the curve has flattened, too rick was just talking about that i think its getting near a level where maybe its going to get investors attention a little more if yields continue lower. Go down below 1. 75 quarters. Its going to upend this story that the overall markets are indicating a much quicker pace of activity, Economic Activity were not there yet. I think theres a little bit of noise in whats happening in terms of 178 but it did hold the overall market in check. At least partly. Weve got an earnings alert on Urban Outfitters. Courtney reagans got it for us. We have a slight miss here on earnings for Urban Outfitters coming in at 56 cents a chair. The street was look for 57 cents. The revenues a hair light at 987 million. The street was looking for about a billion there. Comparable sales altogether for the total company, all the brands up 3 , slightly better than expected by brand free people up the strongest by 9 . Anthropology sales up comparable, 4 and Urban Outfitters, the namesake brand, those were flat. They do cite positive online digital sales. And for the fourth quarter, the only real guidance is a quote from the ceo, saying look ahead to youq4, we are encouraged by sales to date but realize our highest volume dates are yet to be written so yet sales are positive quarter to date for the fourth quarter. Shares of Urban Outfitters are down sharply in reaction, almost 11 . Back over to you courtney, thank you steve, i think this goes back to the conversation we were having earlier, winners and losers in retail right now, right . There are how crazy is that. They miss by a penny, they miss by not even 1 on the top line theres no surprise in samestore sales and the stock is being sold. Whos selling it the algos are reading the release, the machines go and they sell the stock. These are generally opportunities. Now, im not involved in the name i have no interest in being involved in the name, but if i were looking at it, i would step up right here. Thats what i did with adobe, when it got hit. When you have all of these releases, and you get rewarded i dont think you have High Conviction shareholder bases in any store, in mall base, kind of chain retail right now, Specialty Retail stock was kind of destroyed from 45 down to 20 in august. Went up 50 in the overall rally, august up to recently and now its giving back a quarter of that gain or half of that gain. We will leave it there, everyone thanks so much for joining us. Steven weiss and charlie brezinskoi still to join with us, Makan Delrahim and later, our journey through space week continues when we talk to the administrator of nasa. Hell tell us what trends investors need to watch, coming up closing bell is back in 90 were honored to have you on campus for the official visit. Aflac coach saban, how is aflacs Program Different from Health Insurance . Well aflac gives you money directly, for things Health Insurance doesnt cover. Aflac we put together a little highlight reel for you. Heres aflac helping you with your deductible. Copays. Out of pocket costs. You look good paying bills. Get to know us at aflac. Com welcome back to closing bell. Lets send it over to mike santoli for his third dashboard of the day mike morgan, one big question in markets and elsewhere, union or division there was an oped by carl ican in the wall street journal today about some efforts on the s. E. C. That he sees as hostile to activist investing regarding proxy advisory look how activist investors have done relative to the s p 500 in recent years not very well. Activists, hedge funds are in yellow right here. Two years they outperform. 2015 and 2016. That was kind of the heyday of activism going out, saying that companies should recapitalize or break up or change their strategy its been pretty poor in the last couple of years now, take a look at the spinoff stock index. This is an exchangetraded fund, cfd is the symbol. Its recent spinoffs, how they perform relative to the market that also basically peaked a couple of years ago. Its been an awful performer historically, spinoffs have been very good performers longterm, a lot of hedge funds involved maybe this is something to do with it. There is a theory out there going around, that perhaps activists forcing spinoffs of bad businesses is thwarting spinoff returns out there thats something that boyer value has put out there. Sort of an interesting symbiosis of how they perform. Going back to the hedge fund performance, last year has got to be the worst. For activists given that its a down year. In particular when its a down year foractivists in particular. Activists are not saying, were just going to preserve your capital. Theyre saying, we are going to create good absolute positive returns. Thats right, they have not done so it seems like maybe we got a little bit too crowded of an area and a lot of assets thrown in it and companies are better defending themselves mike, thank you still to come, Justice Department antitrust chief Makan Delrahim will discuss the latest on the probe into Big Tech Companies plus, nasa announcing partnerships with five commercial Space Companies including spacex and blue origins to take cargo and people sa the moon. Na administrator Jim Bridenstine joins us exclusively coming up on the closing bell. For every dollar you spend at a Small Business, an average of 67 cents stays local. Macon. Macan. Shop small and watch it add up. Small business saturday by American Express is november 30th. 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. It is already working in cities like tokyo. people talking for every dollar you spend at a Small Business, an average of 67 cents stays local. Shop small and watch it add up. Small business saturday by American Express is november 30th. Welcome back a key fidelity executive involved in overseeing investments in wework and uber is leaving the company leslie picker joins us with more leslie andy boyd is leaving fidelity to start his own fund. Now, while he didnt actually manage money for fidelity, he analyzed deals and negotiated terms on behalf of the firms Portfolio Managers that wanted to buy stakes in private companies. A fidelity spokesman confirmed in a statement that after 15 years at fidelity, boyd decided to leave the firm to pursue other financial interests. He added that a successor will be named in the near future. Fidelity owns wework, 2 and me, juul and spacex as well as those that recently went publicly uber and peloton. Many of those holdings have had to be written down by the firm boyd joins several of his private investing peers in leaving established investment firms to start their own funds for example, earlier this year, henry allenboeingen departed t. Rowe price leslie picker, thank you. Still ahead, were going to discuss a recent nasa report that spacex flights to send astronauts to the International Space station are significantly cheaper than boeing flights. And we will also discuss that news exclusively with nasa administrator Jim Bridenstine when we come back. Emerging markets obsolete . Ew of at pgim, we see alpha in the trends driving specific sectors of outperformance. Where a rising middle class powers a booming auto industry. A leap into the digital era draws youthful populations to mobile banking and ecommerce. Trade and travel surge between emerging markets. Every day, our 1,100 investment professionals around the world search out opportunities for alpha. Partner with pgim, the Global Investment management businesses of prudential. Ive done all sorts of research, read Earnings Reports, looked at chart patterns. Ive even built my own historic trading model. And youre still not sure if you want to make the trade . Exactly. Sounds like a case of analysis paralysis. Is there a cure . Td ameritrades trade desk. They can help gut check your strategies and answer all your toughest questions. Sounds perfect. See, your stress level was here and i got you down to here, ive done my job. Call for a strategy gut check with td ameritrade. I am totally blind. And non24 can throw my days and nights out of sync, keeping me from the things i love to do. Talk to your doctor, and call 8442142424. 33. Welcome back tech is on pace for its best year in a decade, is the sector up more than 40 yeartodate. The rally comes despite big tech giants such as google and facebook facing increased regulatory scrutiny from the Justice Department and the federal trade commission joining us now in a cnbc exclusive is mac Makan Delrahimd of the dojs antitrust division and joins us now from the rbc tech conference. Good afternoon to you, mr. Delrahim thank you for joining us good afternoon. Thanks for having me i wanted to start with a bigpicture question, if i may, around the topic of tech relati regulation and that is, whether or not, if the u. S. Doesnt act sooner rather than later, well see other geographic areas like the eu move well ahead in regulating Tech Companies, which tend to be u. S. Based, of course, and that will lead the u. S. Being a followup in terms of tech regulation, rather than a leader well, i dont know if that would be accurate. We all look at the facts and the laurel vaw relevant in our jurisdictions, as the Deputy Attorney general has announced we are moving full speed ahead, but we have to wait and see what the investigation reveals. We look at the facts and the laws as applicable in the United States tech platforms could reach beyond antitrust issues, those were the comments yesterday. How . And what would that mean in terms of the reviews that your team specifically is undergoing right now . So the antitrust division is focused on the antitrust aspect and the competition effects of our investigation. But as ill refer you to the Deputy Attorney general, jeff rosens comments about the you know, what other policy implications there might be, what he said was that, you know, should there be other areas that will be policy tools that could address, for example, consumer, privacy protection, and other areas. When we talk about Consumer Data Privacy and the potential misuse of it, is that a factor for you to consider, whether directly or indirectly, it comes to antitrust sure. So as i have discussed this recently, the possession of data, you know, we view data like other assets, but you could have data and the question is, is a company that has market power use that data to either maintain or perhaps acquired that market power through the abuse of it. So well have to take a look to see how it affects the competitive landscape, but we also have to be careful. Because all data is not created equal. Theres, you know, user data, which is, you know, our information, email, cell phone, name, and others, where many people could have, but theres also usage data, which is very specific, during a period of time that might be much more unique and theres a lot of other types of data that Different Companies have so we are focused on on that. And not all data is created equal. Weve seen a number of big cap Tech Companies that are under investigation or under antitrust scrutiny right now continue to make deals facebook, acquiring control labs, alphabet, acquiring fitbit and i realize some of those deals arent necessarily tied to the areas of businesses with those companies that are being probed but does it alarm you to see the deal making continuing among some of these big companies, given the fact that previous deals are part of whats being scrutinized now in terms of how they got to their market dominance . Well, i think it depends on the character of those deals i wont comment on any specific deals or any specific company, but, you know, some transactions may not suppose the same competitive harm, you know, one than some other ones that might actually either be a competitive threat to those companies or combined together, they might pose other types of competitive harm so not everyone it was an exchange that chairman cicilline and i had last week at the house judiciary committee, where he suggested or hypothesized, should there be a moratorium on these Companies Making any kb s acquisitions, and i said, no, because some of the acquisitions could be proconsumer and procompetitive. So we have to take a look at all transactions, but its an area that many people are discussing and considering. Do you welcome the state ags separate investigation of the moment into google or do you think that things were progressing as one well, things are progressing largely in concert with each other. We have a great working relationship with the state ags. Many of them are very have very capable offices and i think everybody is rolling in the right direction, and we have, you know, confidentiality agreements in place, so well see how those investigations develop. Sometimes, state ags and the federal enforcers dont always see eyetoeye at the end of an investigation than they do in the beginning. Sprint tmobile mergers is a perfect example of that. But well see. I think at this stage, were working well together and i think theres a lot of value they can add to the investigation. Most importantly, i think what it shows is that on a theres broad bipartisan interest and concern about the competitive effects of some of these companies. When youlook back at antitrust investigations into another tech company, microsoft, a couple of decades ago, that basically stretched out for years, if not decades. How long you expect these probes to last for the Tech Companies under scrutiny now its really hard to take a guess at that. I think, like i said, theres a lot of resources that we have devoted to it. But these are complicated. And they are fact intensive. These are markets that are within themselves are quite complicated, so, were taking the time to do it right. We dont have any, you know, preconceived conclusions at this stage, and so we are working towards that microsoft took a number of years, you might recall that that was one where the federal trade commission had started an investigation, they ended up deadlocking 22. And the Justice Department took that on. And, you know, state ags were involved, as well back then. Now senator Richard Blumenthal was then an ag of connecticut and he was quite active on those matters. I wanted to move on, mr. Delrahim, if i may, and talk about banks and the Financial Sector youve approved the bb t sun trust merger its a different type of market where there are thousands and thousands of banks how do you think about it when you see what were the 16th and 17th biggest banks merge to become the 7th or 8th biggest bank and the way that would damage competition for the thousands that remain smaller than they are, compared to enhancing the competition with the five or six that are bigger. How have you weighed that out . So, as you know, we look at the overall market, as well as the local markets where some of these banks will play. And our role is an advisory role to the fdic, the fed, occ, and the other banking regulators under the banking laws and that was one where it took us a little bit of time, but we worked closely with the banks, both sides, as well as the divestiture buyer. And we came to a conclusion that in certain markets, there were some branches and assets that would hurt either the retail or the Small Business market and we were able to get a divestiture that addressed our competitive concerns and we worked closely with a divestiture buyer that was identified by the banks to acquire those. And the merger themselves will provide theyll make them a stronger competitor. Because theyll be able to put in the new resources, the technology advancements, as well as the improvements that they need so were very pleased with the way that this ended for this transaction. So would you be open to further consolidation across the Banking Industry a lot of banking experts and ceo talk about the need for broader consolidation. Would you welcome that well, ill leave it to the banking regulators to see if that improves the health of the Banking Sector from a competition standpoint, well take a look and evaluate each transaction on their own merits and the facts they present to see whether or not it would violate the antitrust laws and what remedies it would be. But i only enforce the laws. I dont actually make the deals there. So to the extent that they dont harm the consumer, we would welcome those transactions, if they actually benefit the consume consumer just to switch gears again, the Justice Department asking court to scrap the old antitrust decrees. Would we be having this conversation would the doj be looking at the undoing of these 50yearold plus roles if it wasnt for the meteoric rise of streaming we probably would, because the markets, the exhibiters, that market has shifted, as has the Production Companies just for the purpose of your viewers, those descent decrees were really settlements that the Justice Department had with those five studios, paramount and a few others that existed back then. And it was to resolve an antitrust case, the Justice Department brought in 1938 and these were resolved in 1948. And since then, through these decrees, that business has been regular utilited this way and i just thought that we should take a look at all of these holistically and see if it actually makes sense and in our determination, it didnt seem like our continued involvement in those consent decrees, actually made sense in the market place they actually might be preventing innovation that could occur, that consumers could very much enjoy Makan Delrahim, thank you for joining us here on cnbc. Makan delrahim, the antitrust chief at the doj appreciate your time thanks so much for having me. It is time now for a cnbc news update with Bill Griffeth hey, bill thank you, morgan heres whats happening at this hour at least one person was killed, eight others injured in clashes between bolivian Security Forces and supporters of former president eva morales. That was near a major fuel plant. The violence occurred after some bolivian cities reported food and gas lien shortages because of demonstrations by promorales groups new york is the latest state to sue juul labs saying that the ecigarette maker used deceptive and misleading marketing practices. The attorney general Letitia James announced the lawsuit, saying the company violated state law by marketing to minors it misrepresented the safety and the therapeutic value of its products by saying they were safer than ecigarettes and suggesting that consumers make the switch, when in reality, juuls products contain significant amounts of nicotine and are not cessation devices. And finally, Daytona International airport was evacuated this morning after a suspicious item was flagged during a security check. Turns out it was a bottle of lotion after about an hour, the bag was cleared and normal operations resumed. You three have a lovely rest of the day. See you later. You too, bill thank you so much. Bill griffeth. Thank you it was another explosive day of testimony in the house impeachment inquiry hearings ylan mo ylan mui has the details reporter adam schiff and his chief counsel are in the middle of questioning the two afternoon witnesses. One of them is timothy morrison, a former nsc official who was listening in on that july 25th phone call afterwards, he asked the nsc lawyers to review the written record of the call and restrikct access to it i feared at the time of the call on july 25th, how its disclosure would play in washingtons Political Climate my fears have been realized. Reporter the other witness testifying is kurt volcker, the former special envoy to ukraine. He defended his role and said that never knowingly participated in any effort to get ukraine to investigate Vice President biden. He said in his mind, there was a sharp distinction between investigating burisma and investigating biden and the latter, guys, he said, would have been unacceptable back over to you ylan mui, another busy day in d. C. Thank you for bringing the latest still ahead, home Building Permits surging to a 12year high how that could impact economic growth, coming up. Plus, we speak exclusively to nasa administrator Jim Bridenstine on a mission to return restaurants to the moon i am totally blind. And non24 can make me show up too early. Or too late. Or make me feel like im not really there. Talk to your doctor, and call 8442342424. Nice rock. Its time to drop gold. Go digital. Go grayscale. With time, comes change thats for sure. And when those changes might help more people, especially those in retirement, i think its worth talking about so, aag is introducing a new jumbo reverse Mortgage Loan so you can now access as much as 4 Million Dollars in cash, tax free, from your homes equity. Aags new jumbo reverse Mortgage Loan can give you more taxfree cash than ever before. If youve had your home for a while, its probably worth a lot more today. So why not use that appreciation for anything you need maybe its some home repairs, or updates to make it more comfortable so you can stay in the place you love. Its a viable effective way to support your other investments long into the future, and another way aag is working to make your retireme. Better. Dont wait. Get your info kit now welcome back nasa announcing five new partnerships with commercial Space Companies, adding elon musks spacex and jeff bezoss blue origin to the art misprogram, which aims to send large payloads and eventually people back to the moon by 2024. Joining us now in the latest installment of our watch this space series is the man, Jim Bridenstine. Hes at the cme Global Financial Leadership Conference and joins us now administrator, great to see you. Thanks for joining us. Well, thank you its good to be with you so i think i need to start with the money trail here for artemis. Weve got, as we speak, lawmakers voting on another continuing resolution to keep the government funded, but even as we see that move forward, the fact that we dont have the fiscal 2020 budget appropriated, how much of that is a challenge to being able to see this 2024 deadline met for artemis well, it is definitely a challenge, but i will tell you, i really do have confidence that in december, i think that an appropriation bill will be complete i will tell you that this is not unusual. I was in the house of representatives myself after the fiscal year began. We were in crs until right before christmas, pretty much every year, so i am not losing hope and i will tell you that the Artemis Program has strong burp support. People are excited about Going Forward to the moon, sustainably, going with commercial partners, going with international partners, and indeed, going now to the surface of the moon with the first woman in history so this has strong bipartisan support and i really believe that we will have an appropriation bill before the end of the calendar year administrator, can i ask a bigpicture question and perhaps expose my ignorance in front of the spacex with morgan next to me, but what is the ultimate point of going back to the moon again . I guess, 50 years ago, there was a point in just going there for the sake of it theres surely no point in going for the sake of it again why do we need to get men and women back on the moon no, we dont go for the sake of it. I want to be really clear. When we talk about what we got out of the apollo program, a lot of people watching this are going to watch on directv or dish network maybe some people are going to see it via internet broadband. A lot of rural oklahomans get their internet from space and theyre going to watch this program on the internet from space. We talk about xm radio, maybe people are going to listen on xm radio. The way we navigate, look at gps. A capability for navigation, created by this Little Agency called nasa, now operated by the department of defense. We look at how we predict weather, how we understand climate, how we do Disaster Relief in fact, look at every Banking Transaction in the United States of america, dependent on that timing signal from gps look at the but that doesnt need another man on the moon. No, so, what matters is what we get from exploring space. We get new technologies, we get new capabilities and when we look at the investments of the United States of america, those investments in space return many, many, many times what that investment actually is. Its not like, really, any other Government Program its a program that results in american greatness it results in exports. Here we are, at the Global Financial Leadership Conference. And we were just on stage talking with people about how right now, the United States of america has 60 of the market share, when it comes to launch that is happening because of investments done by nasa so, that is a net export for the United States of america, at a time when we had when we have trade deficits and everyone is aware, my boss is worried about trade deficits were bringing america back from a launch perspective, but also from a communication perspective, from a navigate perspective. Even from weather. Nasa is involved in all of these things and were going to lead the world, which is what people expect from us yeah, investments from nasa and also increasingly from commercial Space Companies, as well and i know you Just Announced yesterday the selection of more companies that are going to participate in the commercial Lunar Payload Services project but in terms of the rocket thats going to take people back to the moon, sls space launch system, it represents kind of an older business model, if you will, for nasa its contracted out to boeing, but its developed and owned by nasa will this be the last launch vehicle that we see that be the case for well, i think the sls rocket is going to have staying power its going to be around for a long time, because the cost of development is significant but heres whats exciting right now. When we go to the moon this time, were going to have a space station in orbit around the moon called the gateway, and the sls rocket is going to take the orion crew capsule with american astronauts to orbit around the moon on what is called the gateway, this is this space station and orbit around the moon and well have commercial landers, as you identified, a lot of excitement around commercial activities. The president likes to say, rich guys love rockets. Well, were giving rich guys and by the way, private equity and even Institutional Investors opportunities to partner with nasa in these capabilities anyia way where nasa is the customer and in the owner and operator. Sls has been under development now for almost a decade, but were on the fiveyard line, about to punch it into the end zone but well need to take payloads to the surface of the moon and the gateway and those will be delivered by commercial rockets and well have commercial landers going back and forth reusably to the surface of the moon heres the thing were leading a coalition of nations back to the moon sustainably. In other words, this time, were going to stay. Its the United States of america leading the world and i think thats an exciting thing and yes, commercial partners are important, because theyre going to go get customers that are not nasa and that drives down our cost. It increases access, and it preserves american leadership. Got to get your thoughts on Virgin Galactic going public here at the new York Stock Exchange a couple of weeks ago first publicly traded Space Tourism company. How closely are you watching that situation and how do you think it reflects back on broader human space flight become do you see it as a positive or something that can present some higher risks and challenges we are so proud of them and we want them to be successful. In fact, their very first flight with humans, in fact, it had nasa payloads onboard. We want to partner with commercial industry. We want them to be successful, because nasa has a goal. Our goal is to be one customer of customers in a robust commercial marketplace, driving down cost and increasing access. But we also want to have numerous providers that are competing against each other on cost and innovation. And thats how we create this marketplace that is sustainable. The president wants to go sustainably to the moon. This is an example of how we develop sustainable economies, where nasa can be a customer and have more access than ever before all right we didnt even get to commercial by the way when all those tourists sign up to do those activities, it drives down our costs. Good to know. Well, we didnt even get to commercial crew, but i have a feeling you and i will maybe have a chance to discuss that before the year is out Jim Bridenstine, administrator of nasa, thanks for joining us today. Thank you always tomorrow, our watch this space series continues. Always outspoken Chamath Palihapitiya chairman of Virgin Galactic will join us tomorrow on the closing bell. Dont miss it. Up next, Building Permits soaredodkean tay mi stoli will head to the telestrator with what that says about economic growth. What do advisors look for in an etf . Dont just track an index, help me meet a clients need. Is the fund built to sell or built to last . Etfs are only part of a portfolio. So make it easy to explain. Give me a quality fund that helps me get clients closer to their goals. Flexshares etfs are designed and managed around investor objectives. So you can advise with confidence. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. It nice . Ce. This is the mostawarded minivan three years in a row. The van just talked. Sales guy, give em the employee price, then gimme your foot. Handsfree sliding doors, stow n go seats, man, yall getting a hook up and yall dont even work here. Pacificaaaaa [spokesman] if youve tried colleg group cheering shed, snhu lets you transfer up to 90 credits toward you bachelors degree. [woman] it doesnt matter how old you are, you can do it, you can finish. [spokesman] finish your degree at snhu. Edu of millions of americans during the recession. So, my wife kat and i took action. We started a Nonprofit Community bank with a simple theory give people a fair deal and real economic power. Invest in the community, in businesses owned by women and people of color, in affordable housing. The difference between words and actions matters. Thats a lesson politicians in washington could use right now. Im tom steyer, and i approve this message. 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. Lets send it over to mike santoli for his final dashboard of the day mike morgan, unfinished work, which were two of the 272 words in the gettiesberg address, which was delivered today, 156 years ago. Look at that it was a tough one today. That was tricky you know whats embarrassing, i think you did this a whole year ago i dont think so. No i dont think we did dashboards a year ago. In any case, there were other American History ones. Unfinished work on building lots so good Building Permits numbers. Here is a chart of the contribution to gdp, a net contribution to residential investment and what you see here is, obviously, its been positive, but small, most of this expansion here, we nosed right back to the Positive Side again recently thats obviously a good thing. It could be a leading sector of the economy and its something that i think a lot of people are counting on for next year to have a little bit of a revival in gdp but boy, look at the spike here. That was the housing bubble. Way, way, way too high you dont want to see that again. I got the henry the 5th reference. Youre tallying up your wins. Which are few and far between. Mike, thank you up next, the next retail reporttos watch a full preview of those reports, coming up. So servicenow put your workflows in the cloud, huh . 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. Doprevagen is the number oneild mempharmacistecommendedaging . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. 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. Welcome back Goldman Sachs ceo lloyd blank fine and said the gave op the wealth tax. I understand the goals. Its completely unwokable. I want not just fancy people with tens of millions of arts collections its anybody with a farm or home would have to establish what that home was worth every year youd spend years fighting about it and next year youd have to do it again i thought it was an awesome interview. And the bit that really stood out for me was when scott pushed High Pressure him on executive pay. Ceo paid too much you saw lloyds sharp mind and wit came back and said are reporters paid too much which i think a fair question to raise if youre asking the question in the first place and kudos to scott of not giving in the face of pushback and following two or three minutes of conversation on the topic which is where the whole thing was 30 minutes or so and covered a lot of ground. That has been pretty much the goto line about a wealth tax just the finish efficiency of wsh the injustice of selling a piece of but it seems as if the opponents are talking into a easy thing, raise the Capital Gains rate process you agree with the object he was there are easier ways to make sure untaxed wealth gets taxed before that point. Like larry somers proposing before. Collecting the bills. Up next, the wall street look need the key things to watch ever investor needs to watch when we come back. E 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. Sometimes, they just drop in. Obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Whether your beauty routine is 3or 57,. Make natures bounty hair skin and nails step one. Its the number one brand uniquely formulated for silky hair, glowing skin and healthy nails. Natures bounty, because youre better off healthy. Restoration hardware surged raft week on news that Berkshire Hathaway has taken an investment in the company our jim cramer sat down with r. H. Ceo Gary Friedman and asked about. When the oracle finds your company in all the companies in the world, i we think we have done a lot of good work over the years. And, yeah, every now and then i get reached out by a lot of people i never had so many people call or text me about an event every in the history of my career. That full interview on mad money tonight with jim. 6 00 p. M. Eastern with a big line jum of ceos. Including a World Exclusive with the bear and cat, dancing bear and cat dont miss that looking ahead, more big retailers set to report tomorrow Courtney Reagan has the preview. Hi, wifl with, after the disaping Earnings Report from home depot, wall street definitely watching lowes and any changesly are by marvin elyce. Target reporting earnings tomorrow morning the stock a bright spot in the retail space beating every every estimate last quarter. The ceo has been outspoken about the strength of the consumer and the one particularly shopping at target well see if that sentiment remains. Finally l brands after the bell. Watch the same store sales for Victoria Secret that area continued to be pressured. Down 6 last quarter. Thanks for that big retailer tomorrow mike but interesting thing didnt did he rail the overall market today. Noen. And didnt derail the staple stocks. People willing loo look that over appear say this quarter is the most important for the consumer activity and none had guidance notably dampening that outlook. Irgs that was okay the overall market has been impervious to a lot of potential threats for now. I do think again we keep going sideways right near the highs which you cant say is a bad thing. Except below the surface you see things fall awaypy divergences you won want to see. Dow finished in the red nasdaq another record high. Home depot was almost all of the dow decline, 80 points of dow decline. The record close for the nasdaq, not dow and s p as we just noted were a little low but still close to the record alltime closing highs that does it for closing bell. Fast money begins right now. With david faber no less. Enjoy. You wanted to get that in life from the Nasdaq Market site over looking new York City Time Square imdavid faber tim seymour with us. Karen finerman dan nathan and guy adami tonight on fastest another bruising for boeing. In after regulators called for a redesign of the 737 jet. The engines will the company overcome the hit plus qualcomm ceo big plans for 5g we wrap up the chip jnt analyst day and find out whats next for the stock. Check out th