Transcripts For CNBC Closing Bell 20141031

Thats down and a check of the markets at 153point rally. S p up 17. Nasdaq up 54 this hour. The small cap russell 2000 leads higher off the mid mfmonth lows and perhaps more than anything is the october surprise. Joining us now, rob morgan, michael cagino, christine short is here, peter costa and our very own Rick Santelli heading into the weekend. Peter, this is a really strong rally now. Were up over 10 on the s p in just about 12 sessions. How do you feel about it . Well, you know, ive been on the bearish side. I think that what youre seeing right now is people are rotating back into stocks and equities. I think the earnings are coming in a lot better than expected. And i think that, you know, they want to put money to work and still two months left and they feel more risk on and take it off other places. Rob i was going to say, peter, we know the costa family fortune. Im not speaking to anyone in my family right now. I would imagine. Do you feel like we have the flush out at the lows and got to get back into the market . No. Honestly, i dont. I think theres another point within the next few months where well see a selloff again. Probably more than 10 . Even though everything is coming in, you know, coming up roses, i do think the market has been on a tear for over five years. We had a small pullback of 8 . I dont think thats enough. I think the market needs to come back a little bit more than that and for a longer duration. So i still think that thats possible. I think thats going to happen within three months. Rob, lets just focus briefly on the earnings coming into today. I think you were focused on the oil majors. As it turns out, its the Online Travel agencies that are rallying the strongest in the wake of expedia. Priceline, as well. What do you think about earnings . Yeah. I think its been a much better season than expected. And i think that thats raised forecasts looking down the road. Its showing and confirms that we do have a healing economy. Stocks are fairly priced. Probably going to continue to go up. As previous guest mentioned, though, we really havent had a significant pullback in five and a half years. That will happen some point but i dont think were anywhere close to having a bear market by any means. Do you want to pick up the point that peter was making that he believes that will be a bigger correction down the line and as i said at the beginning of this conversation, weve moved over 10 in 12 sessions. So weve corrected the correction now fully as we trade out here today. Its definitely an overbought situation right at the moment but at the same time, if people are holding cash waiting for a really big bear market, they better get in now. Probably have Something Like 10 some point. We really havent in the last five and a half years so people should get off the side lines in my opinion. Hey, Rick Santelli, you have to tip your head to kyle bass today. Heres what he said in the october 20second interview. He said, talking about the bank of japans meeting that just happened, i think karoda is going to have and have his draghi moment. Did that just come true . Well, i think it did but i think the question that im amazing that mostly only traders ask is, and simon hobbs, you were excellent this morning talking about the 270 billion thats being purchased in their own jgb market. Do you think that the japanese would give up over 400 billion to go into markets that dont need their help to stay afloat . Isnt that really the question . And, you know, i know nobody likes to talk about it. Yes, very, very healthy things going on in the u. S. Economy. Theres healthy things going on around the globe and most part theres another side of the story, as well. And the debate will go on. You know, if there was no big fed Balance Sheet and the Central Banks acting normal, then we could kick the tires and really trust the levels of the equity markets but we cant make that statement. Rick, i was so focused on the fact you paid me a compliment i actually only slightly misheard i think what you said. Are you suggesting that the japanese Public Pension Fund putting 140 billion into overseas equity funds to support them . I think is that what youre saying . Well, you know what . Im getting right up to the water. Im not saying that they woke up today and said, oh, if we dont do it, all is lost but i think thats part of the central bank plan. The bank of japan knows as well as the other Central Banks around the globe its fungible and its in a box and they started this game and they will have to exit. Its the ninth inning for them. Yes, i do think that theres a form of thinking to try to keep the markets up until good things happen. Buying time. But as we learned three, four, five years ago, in europe, buying time doesnt end well sometimes because what theyre supposed to begin doing, the reform, that never seems to occur. Michael, kind of ricks point here, the Federal Reserve handing off to europe and japan, how much does it matter that we are still having central bank support in this market if its not coming from the Federal Reserve . Well, it matters tremendously because its liquidity. If the japanese putting money in stocks, that helps liquidity. I think rick makes a lot of interesting points. The u. S. Is strengthening. Some parts of the world is. Many others are not and you have a lot of Central Bank Activity both in europe and japan to pick up where the u. S. Has left off. Thats creating a big divergence of policy. Part of the reason of the strength in the u. S. Dollar and its helping u. S. Markets so i mean, i expect that to continue. I think our fed is in a box. I dont think they can really move too much aggressively on interest raits. I dont think the economy demonstrated enough sustained Economic Growth and they really cant do much going back to qe measures again if they need to. It wont be effective. I want christine to weigh in on this, as well. We learned this morning and never seen so many notes saying the same thing saying, were finally starting to see wages increase in a reassuring way, enough of a way, christine. There are signs i guess if you take it at face value theres strength in the u. S. Economy here. I think there absolutely is and across press releases, theres concerns. Europe, stronger dollar and the two biggest concerns that we are seeing in press releases. A quarter of all Companies Reported this season see that as the biggest concern Going Forward. But youre speaking of wages and were talking, we have a jobs report next week. Linkedin that reported last night, they did better than expected and a strong point is Talent Solutions product and that actually is used by recruiters looking to find new candidates so that segment up 45 year over year. Hang on a minute. We know that we have no problem with people of College Degrees and so tight on that end of the employment market. Thats not what everybodys focused on. Thats not the area of the market for which janet yellen is keeping rates where she is. Thats a good point. We will have to see next friday, you know, where the Unemployment Rate goes. Does it go down further. Where are the strengths . Is it still like you said College Graduates and are those other areas traditionally weak over several readings improving at all . A final word to you, rob, actually, kind of related to this, are we at a point where for companies now at record corporate profitability and starting to see some wage pressure in some areas, could that be one thing here that now marks a bit of a peak if you will of margins and again for the right reasons so to say . Yeah, i think i tell you, as far as wages going up, its a good thing that its twoedged sward. Good thing and could be perceived as a bad thing, too, if that triggers some inflationary pressures. Wages are two thirds of cpi and ppi so certainly we want to see higher wages but theres a downside to that, as well. Right. One to keep in mind. But again, rather see that kind of pressure i think on corporate earnings than the other kind. This afternoon, well leave it there, everybody. Thank you. Thank you. A problem of a space flight. Michelle carusacabrera with the latest. The spaceship crashed in the mohave desert. One person is dead. One seriously injured. Its believed its pilots. Heres a statement from earlier from Virgin Galactic saying the partner Scaled Composites conducted a powered test flight of spaceship 2 earlier today and during that test the vehicle suffered a serious anomaly resulting in the loss of the vehicle. They said at the time the first concern is the status of the pilots. What we were showing you here is from the Virgin Galactic web side. This is an endeavor for private civilians into space to experience zero gravity. Its meant to carry at least six passengers and two pilots. We are learning the location of the crash. It is 80 miles east of bakerfield. Were expecting a News Conference at 5 00 p. M. Eastern time today. But once again, Virgin Galactic, started by as we all know Sir Richard Branson, suffered the crash of a spaceship in the mohave desert. One person is dead. One seriously injured and we believe that to be the pilots potentially on board. By the way, the aircraft the carrier aircraft to get the spaceship into flight, the white knight 2 did land safely according to the company. Guys, back to you. Michelle, thank you for now. Lets get more on what it means to the space travel industry with jane wells by knophone now. Your thoughts . It sets things back. Since 2008, branson is setting deadlines that the first tourism planes would take flight and deadlines have been repeatedly delayed including the latest now was supposed to happen by last december and now the first passenger flights by february, march. Thats changing. All of this happening out in mohave where i visited several times. Where the Northrop Grumman company and the first capsule that branson had and the x prize, they have been doing many of the tests there and the passenger flights, the tourism flights themselves, supposed to happen in a brandnew 200 million facility in new mexico called space port america. Thats where the headquarters are. The testing in mohave. The tourist flights to happen in albuquerque or south of albuquerque. All of that on hold now. There had been reports that they were going to be testing a new type of fuel on this flight and nbc is reporting, of course, that the spaceship 2 was not doing a rocket test in nine months. A long time since spaceship 2 up there doing this. Its been up. I should add, many times before. Its done a few dozen flights with flight 92 and quiet flights. What happened today may be is due to the new type of fuel tested. We dont know. Obviously, appears a pilot is dead and another is injured. And there are other companies i should add out there doing similar work. Spacer is out there in mohave. Xport is one. Its a huge hub for Space Technology there. You know, i mean, lets see what they say at 5 00 p. M. Eastern and theres questions. You mentioned the fact they changed the fuel mix to get more thrust from the engines. Theres also im reading here again from nbc news spent three hours on the ground this morning trying to ascertain whether the weather conditions were right to take the plane up in the first place. I guess it begs the question commercially of what happens now for the 700 people paid up to i read 250,000 a ticket. Well, again, thats mohave. The flights would take off from new mexico and the same area of mohave, of course, is where the Space Shuttle used to land for many years and it can be very, very windy out there. It is you can see the windmills out there trying to generate electricity. This is where the testing is done. Not where the tourists would take off. Okay, jane. Thank you very much. Jane wells there on that breaking news of a virgin spaceship having crashed in the mohave desert. 45 minutes to go on the close. We have done quite well since the Federal Reserves statement and hawkish statement. Slightly more hawkish. Come on. Its all relative. Its still janet yellen. Much more ahead. The co of the Exchange Traded fund giant wisdom tree investors speaking us to exclusively. The stock absolutely rocketed today. Also coming up, starbucks sliding on disapointing sales and the ceo pumped up about the plans to deliver right to your doorstep. The pros debate if starbucks is a stock to own right now when we come back. An Unprecedented Program arting busithat partners businesses with universities across the state. For better access to talent, cutting edge research, and state of the art facilities. And you pay no taxes for ten years. From biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo. Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. Gov you just have to win 70 of your points at net. And keep unforced errors under 10 . On the ibm cloud, the us open analyzes 41 million data points from 8 years of competition to uncover key insights. Data can help show you how to win, no matter what business youre in. Today theres a new way to work. And its made with ibm. Sometimes they just drop in. Always 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. Welcome back. We begin with a check on markets. Green arrows. The dow, the major averages looking to go out having hit record highs today. In fact, in october, fighting into positive territory. Pretty amazing snapback. You can see there about five names are currently in the red including by the way some of the big consumer names, pfizer, nike, walmart, ibm, home depot and intel outperforms. 42 minutes to trade. Lets hand it over to dom chu for an update. Lets start off with the major deal in the health care sector. Operator aviv will merge with omega healthcare values 3 billion. Heres how theyre trading. 13 . Omega healthcare down a percent or so and Airlines Flying high. Oil below 80 bucks a barrel. Some of the majors all moving higher here. Honeywell announced to increase the annual dividend 15 to 2. 07 a share. Effective in the Fourth Quarter. Shares up by about half a percent. Well end with Meade Johnson fall tong new that is a french food giant purchased a stake in a chinese infant maker. Kelly, simon, back over to you. That will do it. Thank you for now. With over 36 million assets under manager, the next guest has a pulse on the market. Lets bring him in now. Joining us in aex collusive interview is was dmtree ceo john. Thank you. Thank you. I was going to ask you what it was and then today happened. What can you tell us about japan and the flows youre seeing into your etfs. Its not been strong from a flow perspective year to date. The real strength has been the european version of dxj hedge which is actually been the leader in asset gathering in european equities but with what happened overnight in japan a high probability that the jxj did end strong. Its interesting because we heard people time and again telling us that europe was the next opportunity to get in to follow the rallies that we had made in the u. S. Market but then we really, simon, as you know, had a rough patch the last couple of months. Do you think people now, jonathan, pivot and start looking at only if, at least what were seeing in the etf industry, buying europe hedging out the currency so, you know, what were seeing really more broadly is strong dollar. Domestic equities, our dollar fund and then hedged equities working very well. Jonathan, im much more interested in talking about your business own. As you know, a rough year in terms of stock price performance. Very, very rough. Today a surge. Is this a first time you paid a dividend . Yes. Just talk me through. This locks like, if i look at the stock chart, an epiphany moment for you. I would say go back. Last year, up 190 and then this year gave up a little bit as dxj showed weakness and very strong day today. Im not sure what it is today. Up 24 . Thats a good day. 2 billion company. A good day. The question is, youre going do start paying back you have 164 million in the bank at the moment. Repurchase 100 million of shares, pay a dividend. What are you managing the company for . Were you managing it for a takeover . In other words, were you just blazing guns get as many etfs out there and hope you get bought and now youre having to change that tune . No. Just the opposite. We have been running the business to create shareholder value as a standalone company. The business, though is capital light and we run a very efficient business and margins that rival blackrock and we have a fraction of their assets. Do you talk to people about getting taken over . Not we, in. Do you get approached . We dont talk about rumors but youre seeing some activity in etfs. Janus 20 million. I dont know if thiss the full terms. Okay. It was acquired by blackrock and got into the business and not enough sponsors to satisfy the demand of the traditional firms. Is the etf business like hollywood where you have to have the hit products and franchises and if you dont have a dxj in a given year, is that tougher . Different because they have a recuring theme so, you know, domestical large cap dividends, a little bit, lasts forever. The s p 500, 50 years old, doesnt go out of favor so its more like something with a lot of sequels. The dollar bullish done very well for you. Yes, absolutely. Thats been a real strong recently launched fund so the dollars been really driving a lot of money. Do you think that etfs themselves still have the appeal to investors looking into this Product Offering or is it possible because we have motif on all the time. Is it possible there are going to be new technologies and options that become the more expensive . No. So, hes really come peetding. Not with eetf but Self Directed retail. We target the financial intermediary who allocates. I dont think that thats a good analogy. Since january 1st of 2007, equity etfs have taken in 850 billion. Equity mutual funds have lost 300 billion. A trillion dollar difference. 100 of the energy is going into the etf structure. Not being why is that . Fees are constructive. No. Its greater tax efficiency. Its just a better investing experience. What then as things stand today, what is your largely institutional class of clients . What do you think theyre most long and short . What are they most long . You know, changes all the time. I mean, again, i dont know what their most sure. We dont have the negative or inverse type products. You know, for us, a third of assets are exposed to japan and 25 to emerging markets which have been very weak other than india etf and hot since modis election. I have joked often that your advertisements, india or japan, can be such a good tell of whats working. Absolutely. Jonathan steinberg, thank you. Thank you. Ceo of wisdomtree investments. The dow currently up 140 points. Still hanging on to good gains though off the session highs on the records. Apple hitting another high with a few names at the nasdaq. Kate rogers running through the list over there. Stick around for the starbucks stock brawl after the break. The pros debate if its new Delivery Service gives a much needed jolt in the arm. A cure. Today, we believe every life deserves worldclass care. As one of the top four hospitals in the nation, over 100,000 people from around the world come to Cleveland Clinic for care each year. 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For a closer feeling to natural teeth. Fixodent. And forget it. Starbucks announcing today theyre planning to launch a Delivery Service. Will Delivery Service be enough to boost the stock . Lets brawl it out with two guests. A buyer and one who think there iss no reason to get in on the name. Welcome to you both. Andrew, you dont see upside here for starbucks . Absolutely not f. You look at a couple different ways. One way is technically. Starbucks is down on the year, down about 3. 5 . When the market is up about 5 . Underperforming in the market. On the daily chart, up to 82 in november 2013 and then 81. Now looks like the highs in at 78. Technically wants to break down to the 200day moving average and test down to 68. Looking at fundamentally, the quarter wasnt that bad. Profit margins okay. Increased the dividend of 25 and the same store sales at 6 came in at 5 . Weak retail traffic. So i dont see a catalyst to go higher. Three to five years, maybe. We have seen this in all the earnings names, cocacola, kraft, selling out on earnings. You know, nick, there was a fairly Terse Exchange on cnbc earlier today between jim cramer concerned in front of the ceo the potentially not delivering on the longterm growth in the margins they promised a ed schu saying this is the best quarter and the Delivery Service taking us to another level. Take a listen. We have been studying and talking to uber about the things they have been doing and disrupted the market. We think delivery is spot on in terms of customers. It will add incrementalty. We started work on it. It will be fledded into mobile order and pay and drive traffic, will be incremental and once again create separation between us and everyone else. Mobile order and pay and delivery. Nick, does that take them to a different level in the second half of next year, do you think . Absolutely. I think its absolutely transformational and a lot of people have missed out on Wealth Creation by bidding against schulz and frankly i see a catalyst in the near term. I think its as soon as december when we see that mobile order pay being rolled out in portland and we call the stores and see the sales lift. Thats resulting in. When they do report, you know, fq1, december quarter results, were going do see i think a reax reokaxecceleration and driven b you know, a whole lot of marketing. Putting behind the gift cards, behind to the point nick, to the point that andrew makes, if you take a welcome at the charts over the last five years, you get this 300 mrs move and then basically flat lines and flat lined for about a year. Its now a very big company. It suffers from the law surely of large numbers and difficult to move the needle. Well, that big company just posted, you know, two straight years of the kind of comp that is a lot of Smaller Companies would, you know, would die for. And next year theyre guiding for 5 . And so, when i look at the comp drivers into next year, i actually think they can achieve high single digit comps again on billions of dollars of revenue. And when you look at the growth that theyre posting, the Chinese Stores are double what they have done to the u. S. And theyre opening up more stores per year in china than they are in americas region. You know, to me, paying 22 times, 2016 in earnings, in fact, less than 20 times if you calendarize it is a nobrainer. Andrew, quick last word . The earnings in china and europe are pretty good and the u. S. Thing here. You say delivery to help starbucks. One of the strong points of the earnings conference is Dividend Increase and profit margin and they have a Delivery Service. Amazon crushed every time on earnings. Isnt this going to hurt starbucks and cut into the profit margin and its a strong suit. Okay. If thats a question for me, i dont think so. I think that, you know, starbucks hasnt given anything out for free and that tenth cup you get of coffee ordering nine with the loyalty program, theyre saving money on the bundling that they charge a credit cards. Instead of them paying for a Credit Card Fee per transaction, theyre bundling it into ten and saving that way and make up that on the margin. In 50 years, again, i havent seen a starbucks give anything away for free and a lot of people lost out on a lot of Wealth Creation doubts schulz. I think this is transformational. Nick and andrew, thank you very much. Might send nick a starbucks. We have the dow up 154. Have it delivered. Meanwhile, a sea of green at the nasdaq. Kate rogers will highlight the star performers in the world of tech coming up. Plus the pros name names of tech stock that is yaw really should own. Kevin oleary and the ceo of chlorox to talk the market, earnings and a lot more after the closing bell coming up in 30. Stay tuned. Theres confidence. 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This is the microsoft cloud. Welcome back. Virgin galactic reporting a problem. Michelle carusacabrera has the latest. Its crashed in the mohave desert in cantil, california. Cnbc is told that one of the pilots is dead. Dow jones reports that the second pilot was air lifted to a hospital with, quote, moderate to severe injuries. Were showing you live pictures from a hospital shot from our partners knbc, affiliate out there overhead. Where we have seen debris on the ground and at least two debris fields. Witness tells the Associated Press that the spacecraft, the spaceship 2, exploded in flight after ignition of a rocket. We have a photo of the planes and well explain the two spacecrafts before they took off that were tweeted out by Virgin Galactic. Founded by Sir Richard Branson showing spaceship 2 attached to white knight 2 because according to the faa just after 10 00 a. M. This morning, Ground Controllers in the mohave space port lost contact. An experimental space flight vehicle. Cantil, california. Over the mohave desert shortly after the space flight vehicle, spaceship 2, separated from white knight 2. The vehicle that carried it aloft. A rocketpowered space plane which launches horizontally from an aircraft at 50,000 feet rather than vertically from the ground and traditionally seen with space flight. This is the tweet earlier of spaceship 2 and white knight 2 earlier today and tweeted at the time that both are airborne now. Spaceship 2 launches horizontally from white knight 2 according to an early statement of Virgin Galactic and white knight 2 landed safely and concerns of the status of the pilots at the time and we now know according to the california highway patrol, one is dead and one severely injured. A loss of a spacecraft in the mohave desert. Their partners Scaled Composites, we have reached out to them, on this, they havent gotten back to us but theres going to be a News Conference at roughly 5 00 p. M. Eastern time, kelly. Well presumably tell you more when we have it. Michelle, thank you for now. Okay. Joining us on the phone for more is the former senior ntsb investigator, greg faith. Thank you for joining us on the program, sir. Hi, simon. Okay. I mean, obviously, the ntsb will play a part in the investigation. Clearly here reading theyre on the way to the crash site. From your experience, and this is the first time according to nbc that they have fired up this plane in nine months whooils its been in flight or fired up the rockets. What do you think is most likely the cause aft crash . The new mix of the super fuel or the weather conditions . Sat on the ground for three hours were told waiting to get airborne early this morning . Well, you bring up three good points, simon. The ntsb is launching the scene. So they and the faa will be doing the investigation. There will be a variety of different areas that theyll be looking at. Of course, theyll be looking at rocket fuel. Theyll be looking at the entire launch sequence. It will be conducted just as if the ntsb conducting a Major Investigation with an aircraft, commercial airliner that they have done in the past so theres going to be a lot to be done but its too early to even speculate because theres no real solid information at this point. We dont know how high the aircraft was and the circumstances during the separation so those are going to be issues that will be ferreted out in the course of the investigation. Right. We do know that after 45 minutes they climbed to 50,000 feet. Obviously we dont know what happened after that. Im interested in the fact that it will be investigated as though its a commercial airliner. For people that are just tuning in now, this was a test flight with we assume two people on boa board, two pilots. This is a very different situation, surely, than the usual investigations. It is. Its going to be new to the ntsb because its a commercial space operation. Its considered to be a reusable vehicle and conducting the investigation and unlike the other day where thats whats called an expendable launch device where the ntsb doesnt get involved. This is Ground Breaking for the safety board with regard to commercial Space Operations working very closely with Virgin Galactic and the faa since it is in civilian air space. Graeg, how will the investigation proceed from here . Im sorry . How will the invest proceed from here . What happens now . Theyll launch a go team out of washington. It will be con prized of ntsb subject matter experts, probably the chairman and a couple of other executives from the ntsb and the faa. Theyll provide briefings, you know, periodically as they get new information and the team, the Technical Team will then start to organize. Theyll have an error in charge. Theyll have subject matter experts. A variety of different groups, launch Vehicle Group and that kind of thing so it will progress like if it was a commercial airliner. Greg, there are im told around 700 people out there who have each paid 250,000 in order to take this flight viewly. They were targeting beginning the flights next year. Do you think its likely with your experience and your professional opinion, is it likely that those flights will commence next year . Its hard to say right now, simon. Until they really understand what took place in this particular event, if they can isolate it to, you know, a particular event, and its not a systemic problem, then they can implement a fix but if theres a systemic problem or a major redesign, i cant see the flights Going Forward because the f 5a will have to sign off on the certification of, you know, commercial space aircraft so i doubt that if this investigation finds something that a major design flaw of some sort that it would happen nextier. Thank you so much for sparing the time on this breaking story. Greg feith joining us there, former senior ntsb investigator. We have to trade on the market 17 minutes and we are up 164 points on the dow. Its been i was here with you last friday and a great week. This is another great week. Remember the s p up over 10 from the lows we had on the 15th of this month. And anything can happen in the last 15 moneys of trading and live to the nasdaq and head spinning week of earnings reports are coming your way. Well have a preview when we come back. Catch the 4 10 huh . The Equipment Tracking system will get you to the loading dock. There should be a truck leaving now. I got it. Now jump off the bridge. What . In 3. 2. 1. Are you kidding me . Go. Right on time. Right now, over 20,000 trains are running reliably. We call that predictable. Thrillingly predictable. E financial noise financial noise financial noise financial noise get to the terminal across town. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. 14 moneys to trade. Its the nasdaq leading the way. Kate rogers with more from the Nasdaq Market site. Kate . Thats right. Still up here in the 1. 3 . Hit the biggest intraday high since march of 2000 before the dotcom bubble burst. Speaking of tech, lots of action here thanks to earnings. Groupon by far the biggest gainer on tech up over 20 . The Company Reported earnings in line with expectations and Credit Suisse with an upgrade. Gopro with better than expected earnings and revenue and sales up 45 year over year and apple while not doing much today up over 6 for the month and may close at the 38th alltime high. Back to you guys. Okay. Thank you very much. Thank you, kate. With the nasdaq up 12 from the lows, what do you buy now . Lets bring in two davids for more. Now for the top picks, our two guests. Mr. Garrity, what would you buy . Two seasonal plays are well positioned. One is apple and facebook. Apple has the iphone 6. Facebook has year end advertising around the Holiday Season which we think is good and we think outside of that, though, in terms of secular theme. Mobile money and in that area,er have verafone. And we also think that monitse is attractive. A small cap. David, would you find facebook attractive here . What are your picks . Looking at the filings, youll see that weve been an ino enter of facebook since the ipo in the selected accounts and a buyer below 30. Were a longterm believer in facebook and ill quick lly addo that list, one big name, two smaller names i think on the recent selloff are google still trading about 10 below the 52week high. But a longterm wealth creator over eight years. You can find value in this business. Revenue is expanding. I think the youtube as well as the search activity is still quite robust that makes google a longterm wealth provider and then briefly little smaller, more midcap names, Zebra Technologies has done an interesting acquisition of the Enterprise Business out of motorola solution solutions. And then last but not least, Interactive Data corp. Heres one of the reasons why. Better known as match. Com. Its halloween. Thats technology. Dating can be a scary adventure. But match. Com i think removes the terrors and horrors of dating and new business listen. I disagree, actually. I just want to ask you both, before we get further down the match. Com road, either one of you recommending apple . Yes. And we own it in a filings, as well. Ill yes. Anybody scared of amazon . Yes. I think amazon should be avoided. I think obviously the miss into the year end Holiday Shopping season and slowing growth, a slowing growth rate for a high multiple stock, generally puts a top on the stock. We think we see a pullback of 250 over 6 months. All right. Wow. We have to leave it there. My pleasure. Thank you. Thank you both this afternoon. Ten minutes to go. Art cashin told us 1. 7 billion to buy on the close, simon. Well see if the dow makes a run for 200. Let it not be forgotten that history made down here today on the major averages. Next, well talk to two gents who have seen it all. Art cashin and bob pisani. Back after this. [ male announcer ] andrew. Rita. Sandy. Meet chris jackie joe. Minor damage, or major disaster, when you need us most, were there. State farm. Were a force of nature, too. Were a force of nature, too. Where the reward was that what if tnew car smelledit card and the freedom of the open road . A card that gave you that im 16 and just got my first car feeling. Presenting the buypower card from capital one. Redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac with no limits. So every time you use it, youre not just shopping for goods. Youre shopping for something great. Learn more at buypowercard. Com e financial noise financial noise financial noise financial noise so as of this afternoon, we are about three quarters of the way through earnings season. That means that three quarters of the s p 500 Companies Reporting so far have beaten estimates. More importantly, we have a quarter of them to work our way through still to come. Dominic chu with highlights of what to expect next week. What are the goodies in store, dom . Talk about what happened for the big ones so far today. Two big oil results reporting today. Exxonmob exxonmobil. Higher results in the refining and chemical business. The downstream business. Stock up today and down over the course. Of the past three months. Chevron on the big oil side reported stronger than expected numbers. The stock currently up about 2. 25 and down 7 for 3 months. Strong quarter for abbvie. Raised the fullyear outlook. Trading up 3. 5 , up 21 over the past 3 months and ending with chlorox of a 34 clop in profits and still beat expectations and the shares up. In a programming note, in a cnbc exclusive, clorox chairman and ceo will be on live next hour of closing bell here on cnbc. Next week, not as frantic at this week and some big names out with the results. Monday, you have got herbalife, one of the many reporting. Aig, as well. Tuesday, you have alibaba. Wednesday, the electric car maker tesla here. On thursday, you have got disney and then friday berkshire hathaway. Remember, simon, next week 82 s p 500 companies and of course disney the lone dow component to report. Back over to you. Thank you. Have a good weekend. Meantime, we are about four minutes to the close and apparently we have a big imbalance of a billion for an and more on that when we come back. receptionist gunderman group. Gunderman group is growing. Getting in a groove. Growth is gratifying. Goal is to grow. Gotta get greater growth. I just talked to ups. They got expert advise, special discounts, new technologies. Like smart pick ups. Theyll only show up when you print a label and its automatic. We save time and money. Time . Money . Time and money. Awesome. Awesome awesome awesome awesome all awesome i love logistics. Today could be the day. The day we give you hope. Relief. A cure. Today, we believe every life deserves worldclass care. As one of the top four hospitals in the nation, over 100,000 people from around the world come to Cleveland Clinic for care each year. And were ready for you with a Second Opinion or a sameday appointment today today today and everyday. Call today, for an appointment today. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. Less than two minutes to trade down here. Art and bob are with me. We have drama of a technical nature at the close. Can you explain for us . Buyers on balance at the close and rather larger than normal. Over 1. 5 billion to buy on balance. So that means theyre going to keep a bid under them and may push them up to close at the days highs. Normally just to put it in context, we dont pay a lot of attention under 500 million, 800 million. 1. 5 billion is bigger than normal. Among the highest of a very, very long time. You can feel got physical here in the last few minutes. Talk about a session overall, if you would. Closing historic highs on the Dow Jones Industrial average and s p 500. Strong internals. Lots of new highs. Over 300 at the new york stock exchange. One fourth of the s p 500 at new highs, as well. Heavy volume, as well. Virtually every technical indicator, as we have talked about many times, now inverted head and shoulders. Perfect v in october and almost like two months, one is first half and a real mess on concerns about ebola and slowing europe, second half, a complete rebound. Final word to you, art. Well, final word is thank you to the japanese for providing our holiday treat. Couldnt do any better than that. Coming to the close, its an extraordinary couple of weeks as we have erased all the losses. Dont forget that the s p is up 10 from the lows on october 15th. This is the closing bell from the new york stock exchange. Thank you, simon. Welcome to the closing bell, everybody. Im kelly evans. Finishing the day, the week, what a month on wall street. The dow going off pretty much the highs of the session off 180, up 186 points today. A gain of 1 . Same goes for the s p and nasdaq. Up 1. 4 or 64 points today. The russell having a strong session. For more on what to make of it all, as we turn the page to a new month, lets bring in our panel. Mike santoli is here, kevin oleary is in the house with our own robert frank. Almost to you all. With us with more, kenny pulcari and steve grasso in a moment. Mike, that was what did we call what happened in snokt. A bad dream . I guess its kind of over. Honestly, seemed like that midoctober low was a pretty good low. It really did seem like we have a little bit of a flush. But i did not anticipate anything, i think people did not anticipate the velocity of this chase that got us back to a new high. I do think it showed you just how much of a purge we got and the fast money said i cannot let the market leave me behind. Robert frank, waiting for the 9 , 10 to put money to work, if you didnt get in on the lows of the 15th, like mikes saying, you pretty much missed the shot. There was an interesting study the fed looked at the difference out wealthy and nonwealthy. The wealthy stayed in the stock market throughout the crash and the increase and the nonwealthy didnt. Thats increased into october already . 2009 and back and the lesson is stay in this market. Even when things are tough. And, you know, thats increase in inequality and the people that stayed in during the dips and the ups and downs have done the best. Kevin, this is the delimb ma people find themselves in. Sitting out for several years and want to get in, they feel like they shouldnt do it at record highs. I think theyve been preprogrammed to accept this. I think whens about to happen here and im being optimistic, two thirds of the year behind us, earnings look pretty good, were going to see some pe expansion. Thats what were watching right now. Earnings are not changing that much. Price earnings ratio is going up. Kenny, welcome, to set. What can you tell us about sounds like quite a bit of buy orders on the day. Lastminute rush. The market on close. Also, dont forget, the end of the month. Window dressing and last push right into the bell and it all came through in the last minute and the market on close orders. Does that indicate people positioning for a positive november . No. Much more related to the end of the month and november, i wouldnt be surprised at all especially Midterm Elections more voluntarily tollty. We have had the dramatic run of two weeks ago and now 2017 and really didnt take a breather. And so, therefore, nobody should be surprised pulling back a little bit but it might be the 1950, 1960 like that. Churned, builds a base and moves forward again. Retest, revisit the lows . What do you think . I dont know about the lows. I think a lot would have to happen and the reason we got the v is credit markets, the other nonequity markets calmed down and so i think it would have to take manager to break in those markets. Right. Those markets froze, actually, which is what caused that dramatic shift for us lower and then unfroze and settled down, you saw we bounced right back. You guys agree . Actually, mike brings up a good point. High yield single b, bb, bbb debt was a fantastic buy. The concerns of pandemic also affected high yield debt and a safer way to play. We have rick r iedter saying they were interested in the space. Can you get back to, you know, the kind of low risk premium you had back in the highs of the equity markets of september . A central question, what happens if Interest Rates move higher and we asked him the same thing. He said you can have high yield and Interest Rates higher at the same time and goes back to the data this morning on wages. Is this finally the moment when the wage piece starts to fall into place an gives us the conditions for higher conditions. The bet is on the lower oil prices. A great christmas taking the pump dividend into presents but remember one thing. The top 20 of americans do most of the consuming and earning in this economy. Theyre less sensitive on the upside and downside to gas prices and the pump dividend are way overblown. People say, okay, fair point. Maybe we dont see that great of a Holiday Season, could 2015 finally, finally, finally be the year in which theres enough traction because of high wages in the economy for Inflation Expectations to stabilize, for the Federal Reserve frankly to exit and begin raises raits . We can only hope, right . The last year of the last six is people are ready to jump out the window. I actually think retail sales surprise everybody in the upside. Big concerns keeping people out of stores, getting back to disney, look at disney stock. People werent going do go to the theme parks because of pandemic . Huge recovery in the stock and retail. I think back end of the year looks great there. By the way, going back to that high yield debt story. Buy short duration yield of 6 . Youre making a ton of money. We want the latest on the other top story of the day. A deadly crash of a Space Tourism rocket and michelle has more details for us now. Michelle . Just moments ago, sir branson tweeted that all thoughts are the crew. Thoughts with all scale and company involved. Thanks for the messages of support. Im flying to mohave immediately to be with the team. To bring you up to date, this morning, a Virgin Galactic rocket powered space plane on a test flight and just after 10 00 a. M. Pacific time Ground Control lost control with the ship. Well show you a picture of the crash just before it went up, tweeted by Virgin Galactic. Youll see the mother ship and the spacecraft itself which crashed of the spaceship 2. The scene in cantil, california. East of bakersfield. One person is dead. The copilot of the spacecraft. Reuters reports the pilot ejected and moderate to severe injuries and was air lifted to a hospital. The Associated Press spoke with an eyewitness saying that the spaceship exploded in flight. His words. After rocket ignition. The debris field is two miles wide. Spaceship 2 meant to be a commercial carrier to carry six paying customers to go in space and float in ground zero. Celebrities and others have put the money down. Virgin galactic said they received 80 million from 7 individuals. Newpaper reports say that leonardo dicaprio, Ashton Kutcher putting down 250,000 each of deposit to fly eventually when it was commercially available. The project is a joint venture of Sir Richard Branson and Scaled Composites owned by Northrop Grumman and we are expecting a News Conference within the hour at scaled composite in mohave desert. The ntsb is sending a go teem now. One copilot dead. One severely injured as a spacecraft crashed in the mohave desert earlier today. Back the you. Michelle, thank you very much. Robert frank, you probably know several of the individuals signed up to go on the flight. I think i have seen 700 people have paid the 250,000 to take the flight. This was the new trend of the wealthy for the next frontier of tourism. We know and thoughts and prayers are with the families. Space is difficult. Its risky. Incredibly expensive to do well. You see elon musk, jeff bezos, the rich guys getting into it. It was bound to happen. Its incredibly difficult to get this right consistently. Would you go on that flight . Obviously, not now. I mean, this is going to be a big problem in marketing this Going Forward and it reminds us that risk is huge. This is not getting on a flight thats on a thousand trips to london, ek land. Thats the difference between an airline and this. I think it sets it back years. What about spacex and the private Companies Moving into a space as you guys know is hot lately . This is a test. They had, you know, a ways to go before they started to offer it commercially. The same thing with elon musk. I wouldnt say that the programs are dead or delayed but we have a ways to go before people have the comfort and this may not affect it much by the time people are ready to get on the planes. They may have ironed out the concerns. Steve grasso is joining us off the floor, too. Do you have any thoughts of where it leads virgin, spacex, the industry . This is never a good thing, right, kelly . This puts everything back to the drawing board. Takes a lot of stuff off the table. R d has to go up from here. As kevin said before, there are a lot of people that lined up to do this and back away and a lot of dollars come off the table so not that they are going to be hurting for money for a lot of this r d but not a lot of people clamoring to get on board. Is there a refund policy . I dont know for those people. My understanding is that once you put that money down, its very difficult to get your money back. Well have to see what that is. They put that money down well before it was commercially okay to do it. Absolutely, absolutely. Putting that money down expecting to fly in space, this may give them a second thought. I dont think they say i want my money back but patient and wait to see if its commercially doable. They wont put anymore money down. Maybe not but not taking back what they took. Any final thoughts about how people might invest in these names . Virgin is not a publicly traded name. Spacex. Talk about the knock on plays and there arent a lot of kelly, this is different. People are not going to forget the images of those pieces of aircraft all over the desert. That thats stuck in their mind before. We have had space accidents before. This is the next frontier in travel. It will not stop with this. Thank goodness it wasnt a full aircraft of tourist passengers and i feel terrible about the man whos lost his life but this would have been horrific if the first passengers lost their lives in the first flight. Right. But understand. People that invest are not your average american not going to do this. Its beyond really what theyre the capitalists. Its the people that are know and understand the risks, prepared for it. I think it may cause some people just to sit back and i dont think i dont think the investments going away. I agrow. Thank you. Steve grasso, before you go, do you have a thought on finishing this october for the market here . Well, you know, i thought we would backtrack and retrace back to the 1900 level or thereabouts and rip higher on the Midterm Elections. I got off the phone with a congressman today. I dont think well get clarity out of the Midterm Elections and in runoff state and might not know who controls the senate for months later and the republicans wont be with a vetoproof senate and could be terrible as far as Corporate Tax reform and looking far lot of clouds Going Forward. Hmm. All right. Maybe not quite the optimistic scenario that others pasted. Steve, well leave it there. Thank you. The crews asking the ceo of str stratos stratosus. Welcome back. Stocks rallying back sharply and helped the dow to close at a record high. Dom chu looking at how much we have snapped back and whens led the way, dom. Again, with stocks at record highs of october 15th, you can tell every single sector in the s p 500 is up. Lets take a look at whats been leading the way higher, if you will. Where the momentum has been and investors put the cash and stocks to work on the Shopping List. Looking at technology stocks, thiss one of the best performing sectors in the s p since the dip, up 8 . Industrials up about 10 since those lows that we saw back in the middle of the month and then health care, single best performing second forin the s p up 12 since the lows. A lot of these industrials and technology more cyclical and something to watch and then looking at where the worst performers were, still positive and not as much. Consumer staples, up about 5 . Materials up about 5 , as well and then theres Telecom Stocks up only 4 so these sectors even though they were positive not as much as the overall market so when it comes to the momentum into a seasonably strong november and december, look for companies, ones saying industrials, technology and health care, kelly. Back over to you guys. All right. Thank you. So can the bulls keep running . What should you buy heading into november. Joining me, jim la camp and david katz. Welcome to you both. The panels here, too. Jim, what are you buying . Well, we like a lot of the areas that dom mentioned. Big tech and Bio Pharmaceuticals and tranports. We have gone from seasonal head winds, geopolitical head winds, policy head winds to the things becoming tail winds. Just as the Federal Reserve board is exiting, they pass the baton to bank of japan in a sprint to keynesian hell but keeps us going for a while and we have the elections which i do think will be a positive. Low oil prices. We have seen Consumer Spending start to pick up and add Consumer Discretionary on to the list and i think these are the areas to lead. All right. That theres a lot in there. What about you, david . We have had a great run since october 15th so we think the mrkts going to slow down and more volatility but november and december historically good time for the markets and we think stocks trade higher. We like industrials. They have done well. The earnings calls exceptionally good. Very upbeat in terms of the economys not falling off a cliff and more to go there. We like technology. Financials with a good quarter. So we think that group is poised to do better over the next three to six months and a group thats been getting pummeled, energy, we think is due for a nice bounce. I wondered if anybody was going to go there. Do oil prices have to go back up for the space to work . Oil prices definitely need to stabilize first and any sort of little bounce we think means the Energy Stocks do better. Looking at energy price selloffs, oil price selloffs over 10 or 20 years with the sharp selloffs, generally you get a pretty sharp bounce degree back, 5 to 10 in a 1 to 2month period and cant wait to see them bounce back to buy the stocks and thats where wed be buying. Favorite right now is devon energy. All of those we think are good places to be. Hey, jim, what about the energy space . I think you will have are you buying in there . Strong dollar. Of late the strong dollar hurt f. You look over 30 to 40 years, less of a correlation of the energy and dollar prices and as long as Energy Prices stabilize and folks that have a great incentive to stabilize here, the stocks will do fine and paying a very nice yield while youre waiting. Did we learn today, mike, that the market decoupled from the direction of oil prices . I dont know about decoupled. To me it wasnt just about the break even for energy. It is more about, is somebody trapped . I have the idea that as long as we dont get a financial accidents because of, you know, miscalculations and correlation trades gone bad i think we are okay so i think you can be fine with a stable oil price. I think theres issues on energy that havent gone through. Im an energy investor. Last time analysts gave me the return on Equity Analysis for the sector, oil was about 92 bucks. They havent had a chance to bring it down. Im expecting most of the companies to make 15 and i think when this is over its 9 so that correction is not yet in the stock. I think you can see another 7 , 8 , 9 downside. Jim, you mentioned the positive notes on the consumer. What gives you hope there for the Fourth Quarter that the consumer is going to spend again . Are you seeing wage data . Lower fuel prices . What gives you hope about Fourth Quarter Consumer Spending . When you see the kind of increases we have seen in Consumer Spendinging the last two months, usually those Carry Forward a lot further. We have seen the job market stabilize a little bit but to be honest with you, i think the job market stinks. The improvements in the job markets are very, very small. That being said, most people that havent been fired yet dont think they will get fired yet. The savings rate improved a little bit. And the fact remains that these numbers are improving. Now, i think its going to still be a lousy recovery. Maybe 3 at the most. Which is really terrible when you consider how much stimulus is put into this economy. Right. Let me ask before oil prices and confidence thats going further. Last question. What are you selling out of . What are you not specifically buying, jim and david . Jim . I would love to buy the small caps but they havent really shown much bounce yet and waiting to see the market come back around to the small caps because i think theres tremendous value there and not energy yet. I want to see a real bid before i step in. Last word to you, david. Were much less enamored with utilities. They have a spectacular run this year. Under a 4 yield and we would be a seller into continued strength in utilities. All right. Thank you, gentlemen. Happy halloween. Jim and david. Coming up, much more on the Virgin Galactic spacecraft that crashed in desert of california. Well be back in two minutes. Es. No question about that. But your erectile dysfunction that could be a question of blood flow. 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Ask your doctor about cialis for daily use and a free 30tablet trial. Opinions. Theres no shortage in this world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple, unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. Welcome back. Virgin galactic spacecraft had what the company is called an anomaly killing one person, injuring another. Joining us on the phone for me is nbc news space consultant and former nasa mission controller. Welcome, thank you so much for calling in this afternoon. Thank you, kelly. What was your initial reaction to this . Well, youre always first reaction always is what did they overlook . What was what didnt they do right . When this happens, because spice flight will bite you if you dont pay full attention and having our shuttle disasters, they werent accidents. They were based on mistakes. So were going to theyre going to figure out by looking in the investigation now what was it that they just had overlooked . Even though we know its hard and we all know they were having trouble with the engines so this might be a result of that. Is it possible its a result of weather and would that change your perspective on this . Its theres a dozen different possibilities. Up to and including a pocket knife left in the engine belt. There are some things more likely than others but what the investigators cant do, theyre down there in the arena doing the actual fighting with the unknown. They cannot go into it with any kind of preconceptions or any kind of favorite theories because that will filter sub consciously in our minds their selection of clues as they pursue the cause. So right now the issue is to get a timeline of the event. Its still not clear from all the reports what the most important events occurred d. The explosion occur when the engine was ignited or ten or 20 seconds later . That will make a big difference. Were the injection seats used and installed and are the early reports garbled. James, theres a wave of private companies saying we can do it better than government, more effectively and as safely. Does this raise a question of whether the private sector can make money off this . You mentioned there were problems with the engine before this or questions. What did you mean by that . Well, in terms of the private sector making money, a lot of the people in the private sector are getting into it because they think theyre going to pioneer new technologies and they are. There are some developmenting being implemented by other companies, orbital cargo and crew companies and sub orbital Space Tourism and space access flights trying things the government isnt interested in but are equally interesting to expanding into space. The best way as i say is the joke in the Space Business is the best way to make a Million Dollars in a space on a space invest systematic to start with 10 million. Right. People are not really they may make some money but they intend to make history instead. This sort of thing is its first of all tragic. And it involves people who knew there was a risk but they may not have known just how well or how not how well the flight was prepared. We have to find that out in a very cruel and merciless investigation to find out where the mistakes who makes the mistakes. Mistakes dont make themselves. People make them. In the Space Business, when that happens, other people die as happened today. Theyre going to dig into it very mercilessly. The other question of whether they can do it better than government now, about the engine. You said questions of the engine before today. What did you mean by that . Yes. They were using quite an Innovative New Engine Design and a mixed solid and liquid fuel of hybrid with the solid fuel cylinder and they feed a fluid oxidizer. The advantage of the design over the ones used by the government is you can turn it off halfway through the burn if trouble develops. Well, clearly in this case, trouble developed and they couldnt turn it off in time. Or maybe they did turn it off but just barely not in time. Well look at that. The engine had given them trouble. The first design blew up several years ago and killed several of their employees. They flew it, they test flew that other design. Tried to light it in flight. Had some trouble with it. And decided to switch to a new fuel mixture. This apparently the first time they tried to light it. On a flight. So, its certainly from our point of view outside of would be the Center Central issue for looking at it and cant focus on the most obvious because we all know in business and in space and technology its often the unexpected, the really unexpected, that gets you. Just a last question, james, before we let you go. Do you think this will perhaps ground the private Space Flight Mission broadly speaking . No. This will definitely ground virgin sorry, Virgin Galactic, yeah. They have to spend a lot of time looking at it and figuring out what they didnt do right and get back and fix that. There are other projects, some we know a lot about and some very close to the vest. Like blue origin. They and other activities, some more dark horse candidate who is are trying to get develop a reusable updown kind of rocket. This is not just a tourist flight. These are not just joyriding for hollywood stars and millionaires. Half the flights being scheduled are Scientific Missions that we used to do on sounding rockets so the ability to send a reusable craft out to the over the edge over space and back on a short flights has multiple values. One of which, of course, you can make money off it from the passengers. The other one is you can do the kind of research thats been done in the past by sounding rockets. Thats such an important point. James, thank you so much this afternoon. Really appreciate it. Well watch this. Absolutely. Again, in light of the tragic events this afternoon. Much more when we come right back. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Theres confidence. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. Welcome back. Clorx reporting strong earnings this morning and helping to fight the ebola virus in west africa. Clorox is an innovator with franchises not going away whether the fed raises or not and not subject to Disruptive Technology and then theres the most amazing product. Clorox and the derivatives. It is the preferred cdc way to kill ebola. Why . Because clorox kills everything. Lethal to bad germs and viruses. My kind oflet lethality. Welcome, donald. Thanks. Good to be with you. You reporting earnings. Looks like maybe the u. S. Dollar strength was a headwind but in the period ended just in the last several weeks, what can you tell us about the boost you guys are seeing in sending the product to west africa to fight ebola . You know, kelly, we didnt see much impact in the First Quarter, obviously ending in september. This is the First Quarter of our fiscal year but to your point in october we have seen a step up. We just got new iri data yesterday and what were seeing is disinfecting products, particularly the wipes are up in the high teens, low 20s. So were clearly seeing an impact but some of that is attributed to the normal cold and flu season merchandising of every year and kind of hard to tease out ebola but clearly were doing what the cdc recommends in terms of putting the guidelines on the website an trying to educate consumers of what to use to stop the spread of infection in general terms. Does clorox kill ebola . None of the household products have been tested specifically against ebola. The interesting thing of ebola is fairly fragile virus and think about the cold and flu viruses, step cli more hearty and what the cdc has said is any epa registered disinfectant, those are suitable for hospital use, will affect be an effective disenfeck about the against the viruses and viruses. Kevin . If you go online, i want to ask you this, donald, you get sort of a gist of how long this virus lives outside of the bod doing surface. Its about 48 hours. Thats the speculation. And so, im really interested in when you look at how its transmitt transmitted, the idea of some of the people have it here stateside, touch the virus and then touch their face near the eyes and speculation of how they ingested wyatt the body. If you take clorox and wash your hands in it, what happens to your skin . If you wash your hands in bleach, nothing will happen. Dry your skin out a bit. You get a drying of the skin. Its not something i would recommend other than in a diluted solution. The bleach is used for 100 years now in our water system to kill typhoid, cholera. Thats why we dont have the waterborne illnesses in the developed water because of bleach. Its extremely effective and also the cheapest disinfectant you can buy. The other interesting thing of bleach is originganisms cant a to it. It destroys the cell structure and been around for 100 years and keeps doing the good things it is doing. Aside from seeing a little bit of a lift in demand as people have become aware of the need to try to prevent infection, do you foresee anything in terms of sort of an institutionalization of different practices, in other words, using your products in various protocols through different channels, hospitals or wherever, or is that already in place . Its pretty much in place. Its interesting. Eight years coming here as ceo we were selling about 5 million into hospitals and acute care facilities and today 135 million into hospitals. So those protocols are gaining acceptance because theres 100,000 people a year dieing in this country from hospital acquired infections. Thats mersa, staph, the infections caused by the various pathogens. Its about three times the number of people on the highways and most people dont realize that. What youre seeing is hospitals are obviously getting more and more concerned about that, particularly since the federal government about three years ago with medicare laws changed the policy where they will no longer reimburse hospitals for a preventable injury. They classify these hospital acquired infections as a preventable injury and seeing the protocols very much complied with and i think people are getting interested in making sure they dont have these kinds of infections acquired. Sure. Donald, you have a couple more weeks on the job. Is that right . Yeah. Im stepping down at ceo november 20th. Little over eight years. Ben odor whom i worked for at clorox stepping into the slot. Ill be executive chairman so it will be good to keep my hand in the business a bit. Are you proud of keeping the company together . I know theres been pressure on a lot of your competitors to break up, to be acquired for there to be consolidation. Right. Why not be a leader in doing that or are you proud of fending it all off . Well, i think were proud that were still an independent company. I think the interesting thing is, you know, what do our investors want . And it was very interesting when carl icahn came into the stock three and a half years ago. We were trading in the low 60s and very interesting, you know, carl was right. Certainly about one thing in particular. He said, gee, somebody will pay 100 for this company and today we hit 100. Closing down a little bit but this company has tremendous brand strength. I mean, 80 of the brands are still number 1 and 2 in the space. Tremendous cash flow in this company. And i think our investors as long as we keep rewarding them want us to be independent. Clearly, when you look at the mid sized asset that is are Still Standing out there, were one of the premier one that is are still there but i think as long as we keep rewarding the shareholders, we will be fine the way we are. Sounds like if people use bleach and prospect of that slowing down right now. Donald, thank you for joining us this afternoon. Hes the ceo of clorox. Thank you, kelly. How individual investors are holding tight. The day. The day we give you hope. Relief. A cure. Today, we believe every life deserves worldclass care. As one of the top four hospitals in the nation, over 100,000 people from around the world come to Cleveland Clinic for care each year. And were ready for you with a Second Opinion or a sameday appointment today today today and everyday. Call today, for an appointment today. vo solver of the slice. Pro. Teacher of the unteachable. You lower handicaps. And raise hopes. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. pro nice drive. vo well played, business pro. Well played. Go national. Go like a pro. October quite a month for stocks. Just look at that dip mid month. We managed to finish in the green for october. In fact, alltime highs. How did individual investors handle this volatility . Well ask a couple. Back with us is trevor gormley, trevor and wayne smalls. So, welcome one and all. And thomas, first to you, are you buying, selling . What did you do . I got what i was looking for. S p went down to 1900. I put some money down. Went down some more. I got in the dia, the dow etf, bought some google. Got some intel. And basically im back down to about 10 of cash position because i think the markets probably going to creep higher at the end of the year. Wow. Trevor, what about you . What did you do . I think that we could take a look and say i wish i would have done something with a lot of people. A lot of people pulled out on a support level but the way we were able to bounce back surprised me. We had such big macro news. Thomas said he bought in. A Shopping List ready. Sounds like you did the opposites. We missed out. I think a lot of people had more fears than there were to be in actuality. There were a lot of macro friends. Ebola, ecb warnings. The micro trends powered the markets through and a biggest changer of crossing over the high. I think he could run a hedge fund. Wayne . I said i was going to buy apple in april and buy strategically throughout the summer which is what i did do and as of now i held it through the recent volatility and up 30 since my purchase, my initial purchase in april. My 401 k still remains 100 to the s p 500. No changes there or anything. I just knew that we were going to see some more upside. I guess id wonder if anybody has a selling list. You have Shopping Lists. But at this point, are there news triggers or specific things that you think are getting rich you might want to look to get out of . Wayne . Well, im i have a strategy in mind with my position in apple. And i think ill probably hold on to it until maybe mid into the middle of next year but as for my position with sirius xm, probably sold off early next year. I trimmed apple and intel and holding it. Completely out of yahoo . I bought it for the alibaba ipo. Got to 46. I got out of it engersoll rand and prom or the gamble. Why . 10 gains in short times and said ill take the money and run. Trevor . Im looking at Small Cap Energy companies. I think theyre going to do well. Energy is taking a hit and trading at a huge discount. We wonder whos buying the social media stocks priced where they are. Do any of you own any social media stocks . I personally dont. I dont have any. No tangible assets. You have to look at i would rather invest in tesla. You look at a company like that, great, great potential. You have elon musk trying to fill the shoes for steve jobs and the pure value of the Company Behind the veil. Youve got the opportunity and i know a lot of skeptics say the pe is high. Yes, i understand that. Porsche coming out, the pes 180 times earnings. You have to take that into consideration. You need an oxygen mask the look at the pe. If i told you in the month of october that if youd only bought dividendgrowing stocks in the s p, because any time i pound the table on dividends, i do it. Doing it right now. Of course, of course. You would have escaped almost 40 of the volatility and same returns. Why arent you buying just dividendgrowing stocks . Thomas . I mostly have dividend stocks. The one social media stock i have is twitter. Only a quarter of a position in it. Wayne, what about you . Apple is a dividendpaying stock and i think thats where most of my interest lies. Im a big cap dividend paying type of buyer and weary of a stock that just trades on momentum and not have anything positive like dividends that pay out. Did i interrupt you there, thomas . No. Im sorry i cut you off. Were you going do say about dividend players . Do yours just happen to be dividend payers or are you looking at that tactically . No, mostly dividend payers. I have citi and done pretty well but i have to say the bantam x news and news yesterday, im concerned about and trimming that position. Yeah. Trevor . You know, im not saying to take the whole portfolio in tesla but a minute i think its the biggest benefit. I call them disco stocks. Fine for a friday night but in the morning you can smell the stale beer on the carpet. Kevin, nobody listens to k s disco. Im sorry. Im bringing it back. Im bringing it become. Thats what kevin listens to on a friday night. Im not saying that tesla right now fundamentally is a sound company. They have a lot of work to do and sales on the back load. I think that apple and deere, deere is a huge cash cow and looking for them at a discount right now. We have to go. Thomas and wayne, both comfortable being in a full ful though the markets at alltime highs . 10 cash. Like to have something in case theres an opportunity. Actually bought freeport going to Kevin Olearys thing. Yielding 4. 25 done terribly. Added to that recently. Thats a nice safety measure. An intelligent investor. A check of the movie popust when we come back. Stay with us. The hot list. Even on the go. Tdd 18003452550 open a schwab account, and you could earn tdd 18003452550 300 commissionfree online trades. Tdd 18003452550 so when a market move affects one of your positions, tdd 18003452550 schwab can help you decide what to do. Tdd 18003452550 with tools like free livestreaming cnbc tv tdd 18003452550 that give you the latest Financial News and trends. Tdd 18003452550 and bubble charts and price charts that let you see exactly tdd 18003452550 how market activity is affecting your positions. Tdd 18003452550 so when the time comes to decide whether to scale in tdd 18003452550 or scale out you can make your move, tdd 18003452550 wherever you are. 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Hey, the version galactic crash unfortunately has everybodys attention now. Over 10,000 people pilealed into the story going xon kochb stantly updating, getting month updates as we find out more and more about the crash and whats happening. Leading the site now. We interviewed mike mayo on fast money and says citi stock is like candy. So cheap. People buying into it. People have been eating up that take all day long. 30,000 people have looked at it already. He put a price target of 107 on it. Its halloween. Stocks trading around 53 last time i checked. Weird. Citi is a wildly held stock that gets everybodys attention. Third on the hot list now is a look like our market editor looking at how the market may or may not be pricing in the Midterm Election and how with all the uncertainty about the senate and obamas veto pen, maybe just saying its more of the same disfunction. No reason to price in anything. Thats what steve grasso says off the top, too. Thank you, and happy trick or treating. You, too. You should be watching mont turning to the new month. A check on gas prices and big momentous news on the gas price run, tomorrow. Stay with us. To catch the 4 10 huh . The Equipment Tracking system will get you to the loading dock. There should be a truck leaving now. I got it. Now jump off the bridge. What . In 3. 2. 1. Are you kidding me . Go. Right on time. Right now, over 20,000 trains are running reliably. We call that predictable. Thrillingly predictable. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. Get to the terminal across town. Are all the green lights you . No. Its called grid iq. The 4 51 is leaving at 4 51. They cut the power. Itll fix itself. Powers back on. Quick thinking traffic lights and self correcting power grids make the world predictable. Thrillingly predictable. Time thoughts here. I mentioned what could be happening tomorrow, and according to aaa, average u. S. Gas price drops below 3 a gallon. If it does that, the First Time Since 2010 weve seen this. A pretty big development. Does it stay . Should people line up for this once in a lifetime chance or with us for some time . I dont think it will shoot to the upside. People be welcoming it, not overly excited about it. Lower gas prices dont get people up in arms in reverse ways the higher ones do. Keep in mind, 3. 7 of disposable Median Income is gasoline now. Really just not that energy dependent anymore on household basis. Those are the bottom end of the income spectrum who could benefit the most, a bit of a break, robert frank . You cant budget your Family Spending budget on what could change in two week. So i just dont want to bet too much on gas prices, do you know which costs more . Gallon of gas, gallon of milk or evian . Milk most expensive. You say evian . No. Im going to say depends where you get it. I say gas. I believe we can show. Am i wrong, there we go. Heres the answer. A gallon, for sure. 3 for gallon of gas. 3. 73, milk. Seen smaller prices for evian. About 99 cents, i think. The most important thing to watch for flipping into november . The question, will we get price earnings expansion assuming earnings hits the target. 108 on the s p. Assets more broadly. Next week, the nebs expensi exp sculpture ever sold by sothebys. In art. Its going to keep growing. Mike santoli . See if the chase is finished now that oct is done. Seasonally strong period ends november 2nd. Happy halloween, everybody. Thang for being here. Appreciate it. Fast money coming up in a few seconds. Melissa lee, records highs. Exactly and exclusive with the ceo Kim Kardashian in hollywood. Stock down 20 since reporting earnings. Grill them about that. Art. Over to you guys. Thanks. Fast money friday starts right now. Live from the Nasdaq Market site in new york citys times square, im melissa lee. Pete najarian, and others, s p close and the nasdaq hitting a highest level since march 2000 after the bank of japan surprised the market with a plan to ramp up its version of quantitative easing. On this heal ween, traders on this desk are actually getting a little scared. Is this a rally to fear . What do you think . I think the reason why we rallied today is scary. Bank of japan stuff unprecede unprecedented that rile textbooks about this