Transcripts For CNBC Closing Bell 20151111

Things around for that group. And anadarko withdrawing its offer to buy apache, but others could be in play. We have a special report coming up. The ipad pro has officially been launched today. I want to know about the keyboard. Kelly wants to know about the pencil. We have someone who says tablet is too big to fail. A loaded description. And Harry Connick jr. Will join us here at the New York Stock Exchange to talk about veterans day, his latest album and the changing Music Industry. Hell be ringing the closing bell shortly. Looking forward to that. Well start with macys and jcpenn jcpenney. Courtney reagan has the retail detail for us. Macys results dragging down most of the Retail Sector today. While its earnings beat it, you see shares plunge, down more than 14 . On squawk box this morning, macys Ceo Terry Lundgren said he was disappointed with the quarter sales. Some of macys highest volume and most profitable stores. And unseasonably warm weather. Lundgren says macys will focus on activities going forward, which includes cutting prices to lose merchandise. Good for shoppers. Less optimal for margins this holiday season. The company also putting a lot of effort into its off price concept, backstage with plans to open 53 of those stores in the next two years. Macys also announcing an agreement to open Lens Crafters in 500 Department Stores. Separately, jcpenneys sales improved a better than expected 6. 4 . Its pleased with the soontobe released Third Quarter results to come out on friday. Its a claim that alleges false advertisement in california. Jcpenney denies that claim. While it may be that jcpenney is taking a share back, its clear from the carnage across the retail space that the threepronged pitch fork has everybody concerned on the tourism front. Talking about how this could be a negative for tiffany. On the weather front, they could be an issue for them as well. On the major brands experiencing weakness, nikes performance in the dow today and wondering if theres a connection. Yeah, exactly. And we have the most important season coming up, which is the holiday season. So a lot of analysts and investors are going to want to look for clues in what macys is saying. This is the Second Quarter in a row that the Department Store has reported weakness. Some of these issues are big issues. The tourism and the weather. Things that are outside of macys control. But the issues with some of the weakness, with the items like accessories and handbags and jewelry, that can be an issue. Major brands are excluded in that. So it is a worry, and i think that worry has merit. But we know that consumers are buying. Theyre buying things like home goods. So those retailers are doing well. There is a lot of excitement about wearables and technology. So who knows how that could impact things going forward. Customers are being very careful with what they buy and very selective. Yeah, very price conscious. Thanks, courtney. See you later. Alibaba shares are also falling today, but this is despite blowout numbers from its online single sale that holiday in china. The company topping last years record sales in about half the time. Jack ma was on squawk earlier today. He talked about the companys impact on chinas economy. Because of ecommerce. We are getting all of that. I think today we see that its there. The opportunities. The potential is there. We just are lucky that we are the company. The first engine of that. She has a buy on this. Talking about 105. Good to see you and happy singles day, as a matter of fact. The stock doesnt get the respect here that it gets in china. Why do you think that is . I think the largest concern is about the economy. And the slowdown in gdp growth and how that might trickle down into domestic consumption. Can alibaba be coupled . Whats it going to take . I think the consumption and pattern in china is not immune to economic fluctuation. Still a consumption growth story. I think the key catalyst is an inflection in the mobile space. Theyve been subsidizing the tr transition to mobile. Thats heading higher. A follow through on that metric will probably lift the stock. Theres an awful lot of leverage on that. They did 14 billion to put that in perspective. Our black friday, our cyber monday typically does roughly 2 billion each. So even last year, they did 9 billion. Jack ma has said he wants to bring singles day to the uk and the u. S. You think it would have the same impact . I think theyll have a lot of work to do in term of growing the International Presence to be able to pull off that. I mean, thats many years in the future in terms of strategic agenda for alibaba. Going back to chinas growth rate. Are they priced for five . Independent of gdp, i think its priced for that consolidation. A way to go through a slower gdp growth environment. I think its priced at about a. 7 times ratio. I think thats telling us in the next couple years. All right. At least its not overly exuberant, you can say that for sure. Thank you, rob. Lets get to our closing bell exchange. Joining us, keith fitzgerald, johnny perina, and jack, another quiet day of decided lack of volatility. This is hardly a correction, if you will. The big games we saw in the month of october. Were not going to see a correction just yet. Clearfully october, we had a very profitable month there. Theyre very happy that theyre able to regain those positive returns. The beginning of november. Little small pullback here. Theres no reason for it to happen. Earnings season is getting through. Economic data is okay. Economic data hasnt really hurt the market overall. My big concern is were running out of time. Theres only 34 trading days left to go in this year. Some Portfolio Managers who are beating the indices for the year, theyre going to try to hold on to those things. Other ones are lagging. And they really start to have to start making that up right now. Theyve been waiting for opportunities. They probably missed some pretty good opportunities the last few months. The next 34 trading sessions are going to be interesting. A full week next week. Half week after that with thanksgiving. Theyre not really quality days left. You also have a handoff. People have been saying they need to take place moving for monetary policy. On that note, any clarity, any thoughts about the policy you heard from last nights gop debate or whats taking shape for next year . Theres a reason i actually took my gop badge off and didnt wear it today, okay . And that is because i didnt like what i heard at that debate. I did not hear anything that leads me to believe that there would be strong progrowth policy coming out. Im going to agree on him with one thing. Cheap money has helped this market quite a bit. Having said that, there is a lot of quality there. Its a question of really getting the full grown policy to pick up the pace. I want to hear about real tax plans. When youre talk about tax overhaul, youve got to make it so that its bipartisan. When you Start Talking about a packed holiday, youve got to make it digestible for both parties. Were not hearing that out of the republicans. Jeb bushs is plan is pretty detailed. You dont think either of those have a shot at winning bipartisan support . Unfortunately, the people are saying those things are unelectable, thats how i feel. But thats the problem. The strength of the dollar. 10 to 15 return, and john is absolutely right. A couple of points on the market against those enforced the next 30 to 50 days. Its going to be a real struggle. And you get another week where you spike up 5 . Just looking to the end of the year. Youre think about next year. Youre not happy with what youre hearing from some giants like mcdonalds. Even jack ma from alibaba. Theyre expecting tough times in 2016. What are you thinking about . I think theres a very interesting point. Its an important shift, because whats happening is people are coming to terms with those numbers. Theyre coming to terms with the earnings recession. More specifically, theyre finally coming to terms with the fact that the fed is on a torpedo course to raise rates and getting comfortable with that. Mcdonalds, alibaba. I think you need to have a dividing line. And those that dont, a la mcdonalds. Thats where the margins are for next year. Would you have said the same thing after we had amazon alphabet. Apple, even facebook. Turning in the gang buster numbers that we did. Its certainly there in other newer ones. Those are all companies that have key powers. Its not relatively a narrow swath of consumers they appeal to. Before we go, john, whats going to revive the market . What tablets are you looking for . Retail numbers coming out. Maybe something a little spicy there. We are going to continue to talk about the fed. Everyone there has a completely different opinion about whats going to happen and when. And that would include the feds. Right. Thanks, guys. 45 minutes to go here. Some weakness there in nike and walmart today. Also oil. Keep an eye on chevron oil prices. The s p down about four points. The nasdaq down nine. In fact, it did take over talks with apache. Just taken back without much conversation. Were going to talk about where other suitors may be waiting in the wings. Kate kelly has a special report for us next. Others not so much. Stay tuned. My name is erick varela. Im a substation electrician with pg e. When i was 17 years old, signed up for the United States army and i started serving and i now get to serve the customers of pg e. I get to help other families. And thats what its all about. When i came back from iraq, couldnt find work. Then i found pg es power pathway program. Here at pg e im Successful Living in eureka with our two beautiful kids with a brand new career all because of the power pathway program. If you are a veteran, go to pge. Com powerpathway and hopefully your life will change like mine did. Welcome back. Defensive plays. Up nearly 1 . Bond markets in play. Energy on the flip side. Down almost 2 as weve seen yet another leg lower. Im just surprised the ten sectors are positive today. Interesting to see. Lets look at a couple of movers. Keurig Green Mountain is lower after sun trust cut its price target from 50 a share to 60. And activision has gained ground. The company says the global sales of its call of duty black ops three video game topped 550 million in its opening weekend. Activision has been one of the best performers this year. Anadarko petroleum, both stocks down, apache 7 and anadarko 4 . Kate kelly has the details. Energy insiders are saying especially if these depressed stock prices as well as crude prices. A higher premium would have been warranted. Apache seemed fairly happy. A bigger question is are we on the verge of a takeoff in energy m a . There are two schools of thought. Well see much more deal activity, takeovers, restructuring, bankruptcies starting in the middle of 2016 after another round of bank credit talks that reduce Energy Company access to financing. We may have now hit the bottom of the cycle. If thats the case, well start to see more middle and large cap deals, especially as the better financed oil and Gas Companies pounce on the assets theyve long wanted, making the prices wont get too much cheaper. At the moment, some people are thinking this failed deal may simply have been an attempt to raise additional equity. What do you think, just holding up on a higher offer . I know the company a little bit. I interviewed their ceo earlier this year. And i havent gotten the sense that theyre interested in participating in a deal. The question is, does this become like the sales force deal where there was an overture . We didnt really know the details. The target company, sales force, had a defense banker. Maybe considering its options. Meanwhile, though, i did have one say, yeah, now that theyve put in the public situation recently, you have to think the people are going to be sharpening their pencils and looking at it. Whether it works, though, another story. Just looking at the reaction in shares, both apache and anadarko investors. If it is the case that that spurs consolidation across the energy space, does that make anadarko have to look for a target elsewhere . I mean, how many more companies does this put in play . Thats a really good question. I think its going to cause people to consider the options and look at other possible suitors as well as other possible targets. I think generally, the consensus i have heard in the Energy Banking and Energy Corporate community is that its still a little bit early yet. These talks that happened over the last month or two, they did reduce what we call the borrowing base. Thats where we might start to see real distress. Meanwhile, in the public markets, theyre just not as hospitable as they were in the Second Quarter. Theres a company im tracking right now, American Energy perm yum, trying to get the bond deal. They havent been able to do it yet. One weird thing ill just mention in closing, m a activity is actually quite robust. Thats including announced deals. We have continued to see deals happen here and offshore. And whether it does close will be key to watch. Keep in mind, every time we see crude taking another leg lower as it is today. Kate, thank you. Thank you. Its not just the energy sector. The rails. You know, reluctant to merge there as well. But for the very same reason that its happening in energy because of that lower price of oil. Exactly. Rails, you have the added issue. Especially if its canadian pacific. As we acquire a regulatory crossborder. But it gets back to the fundamental business. Weve got about 38 minutes left in the trading session. The dow is down just 43 points right now. Coming up, the pros and cons of apples new ipad proing pencil and all. And i want to know about the keyboard, too. Plus, Harry Connick jr. Is here, hes in the building. Hes got a new talk show coming out next fall. We talk about the Music Industry, and, of course, hes here to ring the bell with the members of the armed forces this veterans day. Thats coming up. Welcome back. Sun edison on its lowest point in about two and a half years. Wider than expected quarterly loss. Thats taking other solar stocks down with it. 15 on sun edison. He has sold more than 28 million albums. Independence day. Holy cow, that was harry. On this veterans day, we should note that Harry Connick jr. Has performed numerous tribute concerts and today hell be joined by members of the u. S. Armed services to ring the closing bell on this veterans day. We are very pleased to welcome mr. Harry connick jr. Thank you. Great to see you. Its great to be with you. And i have to say what an honor it is to be here on veterans day to honor all of those who served and continue to serve. When they come marching through here, you will hear a thunderous ovation. The traders on the floor, many of them are vets. And they appreciate the service on the veterans. Me, too. I just saw a bunch of them backstage, everythings backstage to me. Talk about being star truck and being in awe. Its a big deal. Meanwhile, youve got a lot of stuff going on yourself these days. Hearing les moonves talk about the way the Music Industry is changing. What are your thoughts . What excites you these days . How does it help you as an artist . Well, i love making music. How the music is distributed is something i dont have a whole lot of control over. So if i can do the best product that i can do, im happy about that. Im excited about making music. I have a new record out. A tv show coming next fall. Ive got a lot to be thankful for. That would be me. A couple of years. Very exciting. Its worth a couple of producers i had never worked with before. First time i experienced Something Like that. So im really happy about it. You let somebody else manage your money. Do you pay much attention on the business side of music and how its changed . Do you feel like artists are compensated enough through the streaming process and the way music is distributed today . I think when im sitting behind a piano with a microphone or im on television, thats what i do. And my management i remember when i was 18, he got his gpa with cornell and a harvard law degree. She explained to me a lot of that stuff. We have a great relationship. You can ask her that question. Very appropriate. Got to have some time. You mentioned some of the producers that you worked with on this album. Much different than what were used to seeing. Egg white . Egg white. Thats his name. And butch walker. Butch walker is a nashville guy. It was an amazing experience. Butch walker working with taylor swift and katy perry. Whats the album like . I think the cool thing about it is they knew that they were talking to somebody who didnt just fall off the back of a turnip truck. Ive done it for a while and they were respectful of that. We came up with music that near of us had done before. Ive always thought you were our generations frank sinatra. Thank you. Thats quite a compliment. Now youre going to do a talk show, though. What took so long . Youll be perfect for that. Its when you sit and interview people and have two or three guests come on and talk about what movies they have coming out. Well do a little bit of that, but primarily the show is entertainment. Its going to be me. Im going to have my band. A piano. Theres going to be music. Its going to be celebrating great people across the country. Its going to be comedy. A lot of variety. A little bit of what jimmy fallon is doing on late night, which is just taking the time to be musical and entertain people and do all sorts of creative and interesting things. Thats right. And jimmy is such a great talent. Ours will have probably a lot more of the host playing music because im a singer and a piano player and a band leader. So its going to be all of that stuff mixed up. What we try to do is take that excitement that happens in late night and bring it to people during the day. Before we go, kelly would like to sing a little song for you. No, no. Theres a no. Bills the one youve got to hear. Actually a very Musical Group out here. You can sing a little bit . Little bit. Do you . No. What kind of music . I wish we had a piano here. Here you are right now. Terrific. I wish we had a piano here. Anxious to get you upstairs to ring the ball. Thank you so much. That would be me. Hes ringing the bell in remembrance of the armed forces on this veterans day. Lets send it over to seema modi for a market flash on paypal. We are looking at shares of paypal down about 1 . Dow jones reporting that apple is in talks with u. S. Banks to develop a mobile persontoperson Payment Service, and this app was reportedly on the platform. However, the details of this product in flux according to this report could launch in 2016. We are looking at shares down better than 1 on the day. Back to you. Thanks very much. Time now for a cnbc news update with sue herera. Im so jealous. Harry connick jr. Is my alltime favorite artist. Heres whats happening at this hour in other parts of the world. Specifically in sochi, russia. Russian president Vladimir Putin says his country needs to give sports doping allegations its sharpest attention by conducting its own internal investigation. He added that it must do everything to rid itself of any sports doping problem. But he also said that the issue is not confined to russia. Hunter park accused of posting online threats aimed at black university of missouri students and facility will not appear in court until thursday at the earliest. Thats because of todays veterans day holiday. He was arrested earlier this morning on a preliminary charge of making a terrorist threat. Ben carson speaking at a convocation at Liberty University this morning. He discussed faith and values and his hope that faith should remain an integral part of the public conversation. Europe is marking armistice day, which marks the end of world war i. Thousands there to see the president lay a wreath where the eternal flame marks frances tomb of the unknown soldier. Youre up to dacht thats the cnbc news update this hour. Back to you. You mentioned, its the end of world war i that we now call veterans day. But the truce began on the 11th hour of the 11th day of the 11th month. In britain, they all wear red poppies. On the 11th hour of the 11th day, everything stops in london. I was there when that happened. As a tribute. Thanks, sue. Were less than half an hour to the close. The dow down 31 points. The leading trader into the close. Just one day left. I know youre waiting there. Charitybuzz. Com, where you can come watch us do the closing bell live at the New York Stock Exchange. Art cashin himself has agreed to join us, so you get three, really one for the price of it all. The man will be joining us. The stories you will hear from art cashin will be legendary. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . If you have Liberty Mutual deductible fund™, you could pay no deductible at all. Sign up to immediately lower your deductible by 100. And keep lowering it 100 annually, until its gone. Then continue to earn that 100 every year. Theres no limit to how much you can earn and this savings applies to every vehicle on your policy. Call to learn more. Switch to Liberty Mutual and you could save up to 509. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. Welcome back. Urban outfitters down almost 7 . Ralph lauren getting back earlier gains. Now down 6 . Kohls among the worst performers today. Were in the last halfhour of the trading session here with the dow down 37 points. Youre looking for some direction. A very important day. Were looking for retail. Maybe some upside surprise. Hopefully with good numbers in their singles day. That didnt carry through. Macys obviously a lot lower. They turn them down. Apache is lower after turning down anadarko. Record megadeals this year in terms of dollar volume. 5 billi 5 billion. No chump change there. May see some doyles in low space. That may be bigger than the one we saw. Got to expect a deal to get done before you start raising rates. Where do you see opportunity right now . Im going to see if they pound it a little bit more. Some people at macys. Always a contrarian. Today is the day the apple ipad pro available for sale. Joining us now with more, great to have you. What do you mean by that . I thought you guys it is a rather big ipad. If you look at the two different sizes i have here with me, this is the 9. 7 inch ipad. The diagonal display of the ipad pro. It is a relatively large ipad. Its pretty thick. On the heavy side. If youre looking at something thats maybe a potential replacement, you couldnt do the category or Something Like it, like Microsoft Surface pro, then, you know, its in line with Something Like that. Did you write that with a pencil . I wrote it with the pencil here, you can see. Im dying to know about the keeb. Well get to that in a minute. That pencil is really a big new feature in all of this. Yboard. Well get to that in a minute. That pencil is really a big new feature in all of this. It costs 99. And there are a couple things about this that make you say well, it doesnt have all of the features of the microsoft stylus surface. For example, half of it is not an eraser. Its not magnetized. So youre basically in charge of keeping track of it and not losing it. But it is incredibly easy to use. It will let you charge it. You just stick it into the side of your ipad. I think its best feature is definitely precision. I was pretty impressed with it at work. Its pretty impressive. Its part of this cover. The ipad is you get this cover, which includes this keyboard. That logitech keyboard . So apples own smart cover keyboard accessory here. There are some things about it. I didnt like it quite as much. You can only use it. The key is the same as it is on a match book. It will feel familiar to some people. There are pros and cons of this that i still say apple has opened up the smart connecter technology. Going back to your title. And the size of this thing. Thinner and lighter. Its almost a statement piece. How do you think the size affects, you know, the adoption of this device . I think the size and the price are going to be the two things that everybody considers. When you look at the price, you can probably look a a couple of hefty digs. You look at it as Something Like that, youre really getting more into laptop territory. So i think some consumers are going to weigh it. Should i get a new laptop . Should i get the ipad pro . Theyre going to look at the size of it, and somebody who is comfortable with the smaller tablet doesnt feel the need for this kind of you know, this kind of real estate. Its something thats not going to go for them. Ive never been a huge ipad user. And i think if i had to go with an ipad, i will probably go with something because of the possibility. I have been a huge ipad user to the detriment of my home pc. Except for when im writing. I really need the home pc. I was very intrigued to see what the pro was going to be like. Im a little disappointed in the reviews on the keyboard. As tim cook says, this marks the end of the pc era. Is this a good replacement for a pc, do you think . Its a great question. Something weve been talking about for five years now. At the end of the day, youre still working with a mobile operating system. This is ios9. So youre not running a mac or a windows desk top. For some consumers, that learning curve is still there. Going for a holy mobile device, theyre just not there yet. Certainly enough power when you compare it to Something Like a pc. Its an investment. Its going to come down to whether or not these mobile operating systems merge with desk top operating systems or people just become so familiar with them that this is what they use. Weve got the holiday season, too. Lauren, great to see you. Thanks so much. Heading to the close, 16 minutes left. The dow holding steady. Down 38 points right now. Oil prices sliding today. This time, an expectation for another increase. Jackie deangelis will have more on that next. While you were filling out your amazon Shopping List today, the founder jeff bezos was making moves on another list. Well tell you about that. Cog up. Youre watching cnbc. Welcome back. A big impact on oil prices today. Jackie deangelis has the report. A 3 drop in oil today. Closed at 4293. Weve seen a strong season of builds here. We could see a little bit of a draw this year. If we get Something Like from that the department, it will be a surprise to the marketplace, it probably will pressure these markets a little bit more. Pricewise, were testing the low end of this range that we have been in for quite some time. If crude starts to make these lower lows in the 30s, not far away from here, watch the key technical levels. The strong dollar is also not helping. It was a little bit lower today, but for most of the session, over 99. In terms of volatility, guys, since the start of november, the average daily swing for crude oil prices, 2 . Obviously, we know some days its more, some days its less. But its been very, very volatile. Back to you. It certainly is. Keeping an eye on that. And Everything Else as we head into the close here. The s p down about five. The nasdaq up 12. Good news for stocks, though. Bob kaiser capital iq says theyll continue to outperform bonds. Theyll explain more when we come back after this. Important than your health. 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Why settle for this . Enter sleep number. Dont miss the semiannual sale going on now Sleepiq Technology tells you how you slept and what adjustments you can make. She likes the bed soft. Hes more hardcore. So your sleep goes from good to great to wow gift the best sleep only at a sleep number store. Save 500 on the veterans day special Edition Mattress with Sleepiq Technology, plus 36 month special financing. Hurry, ends wednesday know better sleep with sleep number. It is a longtime and revered position on veterans day, members of the armed forces who are currently serving and these veterans who have served in the past making their way along the trading floor. While we were in commercial, thunderous applause for all the veterans as they were shaking hands with the traders. The gentleman you can see there, a 92yearold Fighter Pilot from world war ii. Maybing his way up to the platform as well. All three branches of the armed services. You just saw Harry Connick jr. There. Theyll be up at the balcony to ring the closing bell as we honor those who have served our country so nobly on this veterans day. Joining us now, rob kaiser. How are you, bill . Very well. Whats the next catalyst for this market . What do you think that is . Well, its likely to be all about the federal reserve. You know, how quickly it will be done in 2016. And what the terminal rate is. That will depend on a lot. Things we have no visibility on right now. If you look at the year overall, my perspective, we spent the first half of the year jumping in between 17 1 2 to 18 times full earnings. In august, we got some surprisingly weak Economic Data out of china. Took the market down to a 15 1 2 valuation very briefly. A lot of buyers came in. And in october, chinese supplies were cutting rates. And the next thing you know, its back to 2,100. The question is, where do you go from here . The fed tightening likely in a matter of weeks. You still think, though, that stocks despite the questions, you think the stocks allow the bonds . The fed is going to be equally slow and measured and the bar is still going to be very high for a subsequent tightening of 2015. We think stocks will end up about 10 higher. Still pretty much the only gain in town. The real question is does something come along . The chinese economy starts a surprise. And perhaps the fed has to accelerate and quicker than most people think right now. As we look at the tenyear treasury note, theyre well below where rates were when they announced tapering. And the vix is at 15. The fed is not going to be a problem. Well see about that. Dom and i will be back with the closing countdown. After the bell last january, google didnt want to be a phone maker anymore. The search giant may now want back in on making phones. Well see whats behind this potential flipflop. You pay your Car Insurance premium like clockwork. Month after month. Year after year. 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Leaving you free to focus on what matters most. Weve got the closing countdown. My buddy dominic choo. An up and down day for the dow. Going to finish near the lows with 52 points. One of the highlights is macys, taking the Retail Sector with the guidance. Macys down 14 in todays trading. Down hard on the open. Never really recovered. Anadarko, it went after apache. Anadarko down 2. 7 . Apache down sharply as well. And tomorrow the earnings retail that paid continues. Then youve got kohls and nordstrom as well. If you could tell us how many fed officials are speaking tomorrow, and who they are. Six fed officials are making public remarks tomorrow. Including fed chair janet yellen. Also charlie evans. Stanley fisher, the vice chair. And william dudley. Wait to see if any these Companies Come back again. See you later. Harry connick jr. , and members of the armed forces ringing the bell to honor our veterans on veterans day. 30 alumni from west point doing the same thing. Heres hour number two with kelly evans. Thank you, bill. Welcome to the closing bell, everybody. Im kelly evans. Heres how were finishing the day on wall street. The dow going out with a decline of 57 points. Just holding on to 17,700, about a third of 1 . Same declines across all major averages. The s p giving up six points. The nasdaq giving up 17. Lets get right to it. Lets begin with these markets. Stocks looking for direction. They are really just low energy. Usual suspects up. Facebook, amazon, alphabet, plus the mega caps like ge. Below the surface, lots of damage. Carol . I was actually surprised that the market held up pretty well given what was going on. And with what you might be able to make out of the consumer given what were hearing out of macys and jcpenney with a couple of retailers coming in the next few days. I was fairly impressed. I thought there was strength in the market. I wonder, brian kelly, what happens now. Every time crude oil renews, do you have these concerns . Drags the stock market with it, doesnt it . It certainly has. And couple that with a stronger dollar and multinational earnings, and thats where you kind of get this. On the other hand, the real question for investors right now is which is going to be the stronger push . Is it hurting earnings, or is the u. S. Economy Strong Enough to keep those earnings up . Im in the first half, where i think we end up lower. Excellent earnings report, brian kelly. An excellent earnings report. I think thats a little bit aggressive. Better than expected. I think we have a lot of unusual issues. I know its a little bit of wage growth. Singing God Bless America by a Master Sergeant. In a silent prayer God Bless America land that i love stand beside her and guide her through the night with a light from above from the mountains to the prairies to the oceans white with foam God Bless America my Home Sweet Home God Bless America my Home Sweet Home [ cheers and applause ] Master Sergeant mary kay messenger there with the armed forces around her on that veterans day. Harry connick jr. There. Maybe he didnt want to steal the spotlight in this moment. But going back to the markets, i was interrupting you. You were saying . First, before we get back to the markets, a big thank you to all of our active duty military, all of our veterans and their family for their sacrifices. With that said, i was talking to brian about the jobs report, and certainly i think that there are people thinking there was enough strength, better than expected for the feds move. I still dont believe they were going to move. I still dont think its as strong as it should be. I think if you look and dig into the data, its not what we need to see in terms of wage growth. I was just ribbing b. K. A little bit. I cant disagree with you. It was a good jobs report in that we have very low unemployment. We can pick it apart. We know all those issues. Just from the investors standpoint, as i look at it, the dollar has already moved. Rates have already moved. In my mind, it looks like the fed has already moved. The market has already moved for the fed. To me, thats going to have a bigger impact on the market than any increase in jobs. Well come back to this and also dig into retail in a moment. We have a news alert on bill ackman. Whats happening . More frustrating news for bill ackman as well as valeant pharmaceuticals, embattled totally for Different Reasons than what im about to report. In terms of accusations that ackman and valeant engaged in Insider Trading in their efforts to purchase allergen, which, of course, later combined with a Third Quarter activist. And the allergen we know is a combination of activist and allergen. A judge in california saying that ackman must face accusations from plaintiffs that he did engage in Insider Trading by loading up on allergen shares early in 2014. With knowledge at that time of valeants plan to take over allergen, or at least attempt to do so. Of course, valeant and ackman said they did nothing wrong. They followed all the relevant security laws. They continue to say that amid questions for a year and a half now. But it appears that theyll have to face a day in court in order to answer some of the unanswered questions, at least as a federal judge sees it, kelly. Thank you. Thoughts . Interesting. This obviously is not the s. E. C. Coming out and saying we have grounds for saying this is Insider Trading. They did vet the letter of the law, presumably. I think the big question is can you be trading on inside information if its your own inside information . If you create the inside information. Right. I dont have a lot to weigh in on on this particular piece with the inside information, although i was one that followed herbalife very closely. Some of the tactics there in terms of potentially pressuring a lot of the people around the story to create something that i thought was out of nothing. I always had concerned about that. So it seems like perhaps there are some techniques here that he uses that are pushing the envelope, and hes having to pay the price potentially for that now. As kate just told us, a california judge just reiterated, im not looking into bill ackman whether that was Insider Trading, this going back to what happened before allergen and valeant were in talks. Kate, thank you. This could be an interesting precedent, by the way. Although this particular deal died and was replaced by a different one, this was a very unique structure that ackman was taking at the time. If a court case here deals a blow notothat strategy, it would affect not just his plans, but other Companies Going forward. All right, kate, thank you. Retailers hoping to make a last ditch effort to boost sales for the year. Joining us now is cnbc contributor stacy woodlitz. Down to the minute, in case anybody was wondering. We need to get you excited about buying a coat because macys needs your help. Thats what was so interesting about their report today. It seemed to be several things, hitting them and taking the whole retailer sector down with them. Macys had its worst day ever in terms of a reporting day. And its from every direction. Its tourism due to the stronger dollar. The consumer is pulling back on apparel and accessories. We heard from michael kors talking about theyre pulling out of the Department Store channel because its so promotional. So, you know, two weeks from tomorrow, im going to join you for black friday coverage. The deals are going to be amazing. And Terry Lundgren on cnbc this morning said its going to be a field day for the consumers, so watch out for gross margins. I was just going to say, carol. Thats exactly what i was going to say. I dont think this is going to be a sales story this holiday season. I think its going to be a gross margin story. And based on the trends that were seeing this year, and frankly we saw some of this last year. I think that the consumer, particularly in apparel and accessories, as stacy said, is beginning to be looking for those hot deals. So the top line numbers could come in strong, but it could be very much at the expense of the profits of a lot of these retailers. It almost makes me wonder. If the Department Store channel is becoming promotional, especially if theyre launching promotional chains themselves, why not kill two birds with one stone, and just become the destination the shoppers are really nowadays going to the mall for . Which is that discount merchandise. Now since the Department Store space is not working anymore, what are they doing . Theyre chasing the off price base. Macys is launching an off space brand. In my opinion, its going to caramelize itself. When you think about macys, whether its two months before black friday, theres promotions all over the place. So its all starting to look the same, and blend together. Macys operating margins will be coming down over time. Better to cannibalize themselves than have to lose that business to whether its nordstrom rack, to saks off fifth avenue. But theres one silver lining, from people who have to cover this stuff. We cannot really make very broad generalizations about what the consumer generally is up to from these chains anymore. We just cant infer that much. Thats an excellent point. Look at amazon. We get it the cheapest way possible. Thats what people want. What are your thoughts on this . I tell you. It reminds me a little bit of the oil marker. Where we had a structural change in the supply. Lets call the supply how many things are out there. If you look at those particular companies, theyre doing quite well. I think theres a structural change going on. I dont know if you can read into it, is the consumer strong or weak, but i think we are going to talk about that on fast money tonight. Got to go there, guys. Thank you both. Stacy widlitz, appreciate it. Well see you again shortly. Brian kelly, thank you, sir. Much more coming up. Were going to have breaking na news on an gentlemen angies li. Iac proposing to acquire angies list. This proposal represents excuse me one second. This deal would be a structured all cash deal. It represents a premium of 50 over the unaffected angies list share. It is important to note that iac is going public with this offer, even though its saying its disappointed to hear that the board is not interested in further engaging with us regarding the strategic transaction involving angies list. Well continue to dig through, but for now, back to you. Shares popping nearly 10 . I am completely shocked that they got this offer, and that theyre potentially thinking about turning it down. This is a company that has struggled from the time that its gone public to really make those profits as a Public Company. And certainly, the Small Business space is a great one. Maybe iac sees a different way that they can monetize the business model. I think if i were a board member there, i would seriously consider that offer. Iac is already in the related business. Home adviser. When they see a category that they like, they roll it up, they do it big. This is probably what they expect or plan to do. Especially as match is about to spin off and go public. Everything old is new again at google, meantime. The company may be getting back into the smart phone business. Just after a year after selling motoro motorola. And declaring fan dual and draft kings are illegal gambling. Is the future of this in jeopardy . Thats coming up. Youre watching cnbc, first in business worldwide. Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. We have a news alert to get to. A busy afternoon. Dow jones reporting that blackistone is nearing a deal to take a Minority Stake in atm maker ncr. This deal would involve blackstone getting convertible preferred shares as well as two ncr board seats. In 2012, google bought motorola for 13 billion to make the brand its own line of phones. In january of 2014, google sold motorola for 3 billion, keeping the majority of the companys mobile patents, but getting out of the phone manufacturing business. Google may want its own phone again. Joining us now is jessica lessen, editorinchief of the information. Theres chatter again. We dont know if any decision has been made. But theres serious conversations inside google again about whether the company should build a phone. What about the nexus . Did somebody else manufacture that . Its a great question. You know, google has tried every permutation. The Nexus Program where they parter er partner very closely with hardware makers. Then theres general android. I think theyre still trying to figure out. The question here is how can google still get some control of android. Its the wild west in android. Googles really trying to standardize that somehow. We reported last week that theyre working on a preferred phone chip design program. What is the virtue of google having greater control over android . Do they simply feel like theyre not owning enough of the economics of it . I think a lot of it is the mode around their mobile services. Google needs their mobile services to drive revenue. Thats a big threat. Apple has that endtoend ownership. And google still covets that. Its carol roth. My concern here is that you really need to as a company stay in your lane in order to be successful. This is not their lane. Theyve tried to go in this lane before. They quickly got out of that lane. Why go back in this lane again . My colleague wrote a piece writing dont get in this lane, google. Its going to be incredibly expensive and its not your expertise. When youve got a company like google, youve got a lot of smart people. They like going outside their area of expertise. But this ones a really tough call. Given the cost. Given the popularity of apple, given the distribution in hardware, i think its really unclear what will happen. Its fascinating. They obviously have a hardware unit in nest as well. I think were going to see a lot of hardware moves from google. Earlier, we mentioned the chrome books. Thats another one. Yeah, a lot well be watching for, see if something does come to fruition here. Thank s for joining us. Thanks for having me. New york trying to shut down Fantasy Sports websites like fan duel and draft kings. Well look at the fine line being drawn between games of skill and illegal gambling. Later, well hear from under armour ceo kevin plank. Dont miss it. Fan duel and draft kings bill themselves as games of skill, but the new York Attorney general is calling them illegal gambling. New york state banned the two main operators, saying theyre gambling, but the question is if its gambling, then is it legal or not . And thats really what it comes down to. Regulators say theres chance involved. Draft kings and fan duel say its a skill game. Skill versus chance doesnt really matter. You can have one, you can have the other, you can have both. You can be gambling and you dont have to be gambling. Online poker, theres skill and chance involved, but the country has broadly defined it as gambling. An even weirder example, the casino held a basketball free throw shooting contest. You bet on yourself, you win if you win. Youre not betting on somebody elses outcome, but thats not gambling. Weve seen online poker go away. The lottery has no skill. But it flourishes. We dont know which way daily fantasy will go. The lottery has no skill . New york could join others which already banned draft kings an fan duel. Were joined now by mark edelman. Hes the school of business law professor who authored a school on the state. Youre the guy to have with us. Are you surprised that daily fantasy has flourished the way it has to this point . Im surprised it reached a multibilliondollar industry before these challenges began. Challenges seemed inevitable. To the point that eric was just making, is the distinction between luck and skill a critical one to make here or not . Its absolutely critical. A contest with an entry fee and prize is illegal in every state, if its deemed to be a game of chance. Now, what differs from state to state is how to define what is a game of chance. There are some states that say mathematically, if you prove a game is 51 , its okay. Those are states like california. On the other end of the spectrum, you have states that say if theres any chance whatsoever its illegal. Those are states like arizona. New york lies in the middle. Chris christie, when he was asked about this debate last night, said come on, why are we even talking about regulating . First of all, every person on wall street should be opposed to making this illegal, because whats the difference . That aside, we are asking the wrong question here. Who cares if its skill or gambling . It should all be legal. I dont understand why the government feels like it needs to overreach and come into our leaves. If we can spend money on goldplated toilet seats and 20,000 birkin bags, we should be able to spend money on our fantasy football teams. I would say first of all, for many, many years, society has said that there actually are societal costs to allowing unfettered gambling and they want to regulate it and make sure that if you are a sanctioned gambling venue, you have to pay out a certain amount. So i dont think really we should necessarily get too tied up in the academic technical arguments of game of skill, game of chance. There was a law in 2006 that basically created a safe harbor for Fantasy Sports with the support of the sports leagues. But it was for seasonlong games. Not necessarily daily entry fee based games. Werent the daily fantasy guides always kind of pushing up against this line . Not just for that reason that you mentioned, but a secondary reason is theres a threepronged test under federal law to be a permissible gain. One of the requirements is a gain has to be based upon the relative skill of the players. The term skill is not defined by federal law. Presumptively, you have to look at the definition of skill within each state in which you operate. So what that means is fan duel and draft kings are only in compliance with federal law if they are deemed to be games of skill in new york and every other state in which they operate. Plus other federal requirements. This is completely, completely frustrating. We have so many things to focus on in our country, like Chris Christie said. The fact that were talking about things and online gaming. The year 2015 is completely ridiculous. We need to get the government out of this kind of business. If were not infringing on other peoples rights, we should be able to do it. Last work, mark . We also need clarity. Fan duel draft kings got into the marketplace because they took a chance. There are many others that would love to compete against these companies, but first one saying its legal. We need certainty one way or the other. If you can spend your money on anything in the world whether its wasteful or not, you should be able to spend your money. You earned it, on anything you want to. Mark, thank you. Lets get over to sue herera. Turkey says 20 people cant suspected of being linked to al qaeda have been arrested in central turkey. The raid comes as turkey gets ready to host president obama and others later this month at the g20 summit. Sothebys says a rare beautiful blue diamond has sold for a record 48. 5 million. The blue moon diamond is said to be among the largest known fancy vivid blue diamonds in the world. It is the show piece gem at the auction. Jeb bush campaigning in iowa this morning, helping to pour coffee at a veterans day breakfast. He was inside a supermarket and he reacted with pumped fists. You just saw it. When asked about bob doles endorsement of him, which occurred earlier in the day. Virginia Governor Terry mcauliffe saying veterans in r in the process of getting housing. The governor warned one of the big challenges will be making sure the veterans dont end up on the streets again. And thats the cnbc news update. Back to you, kelly. All right, sue, thank you very much. Coming up, the cofounder of honest tea says how its impacting his business. A rally in amazon stocks this year, helping jeff bezos become the worlds fourth richest man. Will the good times keep rolling . Were back in a moment. Keeping everyone working together can quickly become the only thing you think about. Thats where at t can help. At t has the tools and the network you need, to make working as one easier than ever. Virtually anywhere. Leaving you free to focus on what matters most. Welcome back. Lets take a look at how we finished the day on wall street. Declines for all major averages. The s p nearly seven. The nasdaq, nearly 17. Under pressure from retail and oil today. The worlds biggest list gets a shockup. Huge personal wealth. Jeff bezos ranked 15th, but over the past six months, hes added 28 billion to his wealth. So he passed michael bloomberg, every member of the walton family, the Koch Brothers and even larry ellison. He has a net worth today of around 58 billion, and he is the fourth richest person in the world. Thats at least according to bloomberg. Forbes still has him fifth behind carlos slim, who they say is worth 59 billion. The top three, gates, buffett, ortega, but bezos has made more in the past three months than carl icahn and jack ma. Robert frank. Joining us for more is richard brandt. Good to have you here. Whats interesting to me about this is that its sort of a 20year story in the last six months of being made into the figure that he is today. Yeah, it is. Amazons been a really interesting company. Jeff bezos decided he could grow it without any profit at all. Run it at a loss. And hes been not trying to make a whole lot of profit on amazon, but made a lot this last year. Yeah. I wonder, if you look at the list of at least the relatively newer entrants on the very top of the wealth list, the zuckerbergs, jeff bezos, even if you go back to gates and some of the other tech entrepreneurs, it doesnt seem like they really did it for the money per se, or really even enjoyed their wealth. Can you give us insight into bezos and how he thinks about this vast wealth . Is he in that mode of figuring out how to spend and give it away . Well, he had a friend in high school. She said once that jeff bezoss ambition was to become incredibly wealthy so that he could build spaceships and figure out how to colonize somewhere other than planet earth, because he figured that was the only way to save human civilization. And of course, hes got his own Space Exploration business beginning on now, which is paying for it with his own money. Its hard to say. Jeff bezos was always ambitious. Told a High School Teacher that he was going to be a millionaire someday. This is when he was in grade school. He wasnt ambitious enough. He wasnt ambitious enough, exactly. So a lot of these people, theyre looking at getting rich. But most of them, they have some passion to do something. Jeff bay southeast just wa jeff bezos just wanted to be an engineer. There seems to be a very substantial jeff bezos premium put on the stock. He has gotten a pass like no other visionary that ive ever seen. I mean, hes obviously incredibly smart, but how has he gotten away for two decades with getting this pass on making a profit, when some of the other visionaries havent gotten the same kind of a pass . Its basically because jeff bezos has done it all along. He made it very clear that what hes going to do is not fudge on quarterly profits, the way almost all corporations do when theyre public. He was going to be in this for the longterm. He was going to grow the economy. He was going to have low prices to gain consumers. All of this has worked. So amazon continues to grow. Every once in a while, the shareholders get mad at them. Longterm, Everybody Knows if youre in it for the longterm, youre going to make money on amazon. They have to find regular earnings growth. Hes always emphasized that. Richard, thank you so much. Thank you. Theres the book. As whole foods reports disappointing earnings and chipotle gets hammered, is americas hunger for health food showing signs of a slowdown . Were going to talk next to the cofounder of honest tea about what trends hes seeing. And apple reportedly planning to rival paypals persontoperson Payment System. The reporter who broke that story just a little while ago coming up. You pay your Car Insurance premium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . If you have Liberty Mutual deductible fund™, you could pay no deductible at all. Sign up to immediately lower your deductible by 100. And keep lowering it 100 annually, until its gone. Then continue to earn that 100 every year. Theres no limit to how much you can earn and this savings applies to every vehicle on your policy. Call to learn more. Switch to Liberty Mutual and you could save up to 509. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. Welcome back. My next guest didnt know much about the Beverage Business that made him a multimillionaire, but he did know he was thirsty. Joining us now is seth goldman, cofounder of honest tea. You didnt like any of the sugary stuff on the market at the time, right . Thats it. I was just thirsty. There just wasnt anything out there that didnt have either 100 calories per eightounce serving or no calories and i thought there should be. Well, necessity is the mother of invention, they say. What does the marketplace need today . Well, we got bought by cocacola in 2011. Weve seen this incredible expansion. Our tea is sold in 100,000 outlets. Just this year we launched in wendys and chickfila with our products. Its exciting to see this across all different outlets across the country. Its funny you mention those fastfood chains. We talk about the obsession of improving the health of the food that theyre eating. Is it just not as pressing anymore, seth . Absolutely not. I think youre seeing an acceleration. The challenge is that this has been adopted by so many other retailers. Our growth this year alone is more than our total sales were in 2009. So we are just really seeing a snowballing effect. So if youre seeing that many more people wanting this better for you type option in this category, i wonder what the challenges for a company in there in terms of staying near the edge of whats considered to be that good thing. Im thinking about people cycling through different artificial sweeteners. Yeah, the challenge is to keep innovating. Thats the challenge we face, too. Weve got to keep upping the ante. We just moved to fair trade sugar this year, which we know is something that helps create a transparent supply chain. Every character, every player in this, whether its the retailer, the restaurant, or the brand, we all need to keep pushing the envelope. For me, thats a good thing for health, its a good thing for the ecosystem, too. There are a lot of entrepreneurs that have that great idea, but the execution of it is so difficult. What advice can you give other Small Business owners or potential entrepreneurs about execution when they have the next great idea . Well, its especially challenging to the Beverage Industry because it is so competitive. Like with any industry, you have to have an innovation that is meaningfully different. With honest tea, if everybody was at 100 calories, it wouldnt have been good for us to go at 85 or 80 calories. We went out at 17 calories, so there was no mistaking we were offering a product that was different from what was out there. Its just you just cant go halfway in terms of making a difference. Its got to be dramatically different to get any traction. You know, you were saying weve got to keep upping the ante. I wonder as peoples attention turns towards meat, weve seen a couple of high profile cases linking red meat with cancer here. Theres about to be that paris summit on climate change. Theyve had concerns about our diet. And youre involved with beyond meat, which is what it sounds like. A venture that just signed up the former mcdonalds ceo. Are you looking at a world beyond meat here . Is that the next frontier, so to speak . Yeah. I mean, its not too different from where honest tea was 18 years ago. The fact is that our planet and our diets cannot support a totally animalbased protein diet. We need to differentiate. If you can assemble the same proteins, the same fats, the same carbohydrates and minerals and water, which all occur in the planet kingdom and reassemble them in a way that mimics or perfects the taste, the texture, the sensorial experience of meat, that could have a dramatic impact. So thats what beyond meat is trying to do. And its exciting for me, having scaled a business, to go back, while still helping honest tea, and take this company, which is a challenging category, and really start to change the american diet. When is the last time you had a whopper . Or a big mac . Oh ive been a vegetarian for ten years. I wont tell you where i ate dinner last night. But thank you for joining us. And congratulations on all your success. Great to be here. Seth goldman. How worried should paypal be about apple reportedly creating a rival for its peer to peer Payment System . Thats next. Believe it. At t and directv are now one. Which means you can watch in the house, in a treehouse, or even in miss pepperpies house. Pause in your pjs and hit play during a pb j. Nice and enjoy some cartoons instead of listening to dads car tunes. dad meet you all the way introducing the all in one plan. Only from directv and at t. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive welcome back. Apple is reportedly in talks with banks to develop a mobile peer to peer Payment Service. Joining me, the reporter who just broke this story, robin sidel from the wall street journal. Its going after venmo and similar offerings that are out there from google, from square, and from facebook and from the Banking Industry itself. You know, just the other day, i was talking to a banking executive whos not entirely happy about apple pay. Was glad to see chase pay launch. Doesnt want the tech giant necessarily to get in the middle of thing. But now, this story comes out and makes me wonder how much interest and success is apple going to have signing up the Banking Industry to be part of this . Well, these discussions have been going on for a long time. And theyre taking a whole bunch of different angles. One of the things that apple is considering is actually using the existing peer to peer Payment Service that the banks already have. And layering that underneath whatever they do. So that would still be the infrastructure. Hi, robin. One thing im wondering about, as it looks at the landscape here. Apple obviously has a hardware based solution in part presumably. Every other competitor, their apps can be transferred to different devices. Is that beginning to be a limiting factor . The banks would say well, were not necessarily opening up to everybody, were opening up to everybody with an apple device. Well, the banks want to do whatever their customers want. They have a set of customers who are apple users. As one executive said to me yesterday, we need to be relevant. We need to be where our customers are. So its not an either or. Its basically kind of throwing everything against the wall to see what sticks. Why do you think that this space is so important to apple . Theyre a company that seems to be going in so many different directions. We hear rumors that they may be working on a car. Theyre in the payment space. Theyre doing so many different things. Why the Financial Services space . Why is that so important to them . Because theyre everyday transactions and people use their Financial Services in one aspect or another every day and apple wants to get those customers Customers Using those devices for as many activities as they can. Whether it is music or making phone calls or sending money to your friend. And ven mo has become popular. It is 20 of the share, robin. Well watch and see if they are close to doing this and what that means for everybody. Thank you for joining. Thank you. Robin siddel from the wall street journal. Well hear from kevin plank with closing bell continues in two. And why stop what youre doing to find a bathroom . With cialis for daily use, you dont have to plan around either. Its the only daily tablet approved to treat erectile dysfunction so you can be Ready Anytime the moment is right. Plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Why pause the moment . Ask your doctor about cialis for daily use. For a free 30tablet trial go to cialis. Com lets head back to washington, d. C. Now. The iconic conference where scott is talking to ceo kevin plank. I dont want to gloes over that. Could you put that into perspecti perspective, from startup to a billiondollar quarter. I had one director, we just celebrated actually, this week, the end of this week, well celebrate, this saturday, the tenth Year Anniversary of the Public Company, at which time well have averaged a 30 top line kegger. And what is important for the entrepreneurs in the room. A 30 bottom line kegger. Weve been profitable since 1998. It is part of who we are. Winning it a culture just as many as losing it. And for keeping it on the come and well get them next quarter and that idea i encourage entrepreneurs whenever i could. You hear people talk about how is your business. Great. We just had a 4 million raise. That is not your business. And you find and see people that become accustomed to the business of raising capital. And i think that the cheapest capital in the world is probably sitting in your inventory racks or the product you are trying to sell because, number one, it doesnt require a board seat and doesnt have an opinion to weigh in on what you are trying to do with your business. So use that as your capital, go sell what you have and raise money. So you guys are doing incredibly well. The only sector or segment of where you do your business, socalled athleisure is doing well. How long is that runway, do you think . The one thing about whether living through the difficulties of just look at the last the last ten years, let alone the last 15 years, and weve seen tremendous amounts of ebbs and flows in the business as a whole. And the one thing about sports which our business is truly grounded in, is that whether times are good or bad and whether there is there is anger, danger, war, anything happening, sports will be played. Football will be played in the fall. Basketball will be played in the spring. Volleyball will be played in the fall. Youll have soccer and youll have baseball. And there is not a person out there that doesnt fient sport as a bit of a reprieve. And youll still be fit and do other things. And there is modifications youve made. And one thing that is certain is that a raising tide raising all ships but a lowering tide does the same thing. And so we look at this current athleisure trend, and i think, yes, keep going. I love everybody making pants and leggings. And were training the consumer out of a pair of 200 jean that was ridiculous because it is not that practical of a piece of apparel or clothing into leggings. And again, leggings are great. People look great in leggings and shorts and athletic clothes. It is practical and it looks good and you could sweat and be physical and do all of those kind of things. Were one month into this quarter. Today was not a good day on wall street from a retail standpoint. Are you worried about where the consumer is now . How should we be taking the news today from macys and the other Department Stores and try as investors that maybe in this crowd here today feel about where your brand is right now. Well i think Terry Lundgren is one of the best executives in retail. I think that macys is a powerhouse. And so they, without question, they set the tone. And what you are seeing, you are seeing a lot of inventory and people reacting to the second warmest september and one of the warmest octobers in recent history. And that will have its effect. For our business, weve learned these lessons over 20 years. And i think it is easy in 20082009, i recoined this phrase, with Mickey Drexler of all people. Retail legend in his own right. And we are were at a retail conference together and on a panel and this guy was speak being the economy and this is so difficult. It was in 08 and 09 and it was terrible for everyone. And mickey is sit there and he is mumbling in his chair next to me and going what a loser. Listen to this loser talk. I cant believe this loser. And im sitting there saying mickey, dont say that. Youre too loud. And from that, i ended up coining the phrase no loser talk. Because this guy was talking about the galactically obvious of what the difficulty is happening in the market. And so what is happening right now is that everyone is dealing with a warm fourth quarter. What we did as a company four or five years ago, we began to create things. Like instead of big, thick heavyrate fleece and if it didnt get cold you were out of luck. We built fifth quarter fleece. It is lighter weight. And people still like wearing hoodies in october and november but it is something that is wearable and it is a little more stylish and not so literal to the definition. We begin to balance our business with things like footwear that is not weather dependent at all. And allow ourselves to level out a lit bill. And with that, the past reporting quarter, we celebrated the 22nd quarter of 20 Topline Revenue growth. The good news is the growth comes from many different places which i think is important, that balance. Mens and womens apparel and footwear, ecommerce and retail channels and then our new connected fitness initiative. Were you surprised that the stock reacted the way it did when you delivered the kind of numbers and results that you just said . Nothing ever surprises me about the market. The idea of in cider information to me is Insider Information is laughable. Because i couldnt predict, based on the numbers we have and the stock, i guarantee it will go up and down and sometimes it goes sideways and sometimes it goes up. You could never control the stock price. And people say that and you look, like, you are aware of it. But honestly, many people live their companies because they want to be like you are thinking exit strategy. It is one of the things they pound down in business school. What is your exit. What is your exit. They a the ipo is your exit. If you are a founder, the ipo is not your exit. And it is one of the lessons that i learned. The ipo is a starting line. And if you are going to be a Public Company because you think this is where you cash out, that is the exact opposite. The ipo is where you begin. And look, from since we ipoed, he had over 2500 growth compared to 65 for the s p 500. So i think our shareholders have done well. And the longterm approach has worked well for our company. You are in the midst of a literal transformation of sorts of your company. People know you as a sports and Athletic Apparel company. You are becoming a technology company. Jim cramer, my colleague and friend, refers to you as a technology company. Yes. How, as an entrepreneur, do you know when it is the right time to m