Transcripts For CNBC Closing Bell 20160908

Two weeks. Energy stocks are popping. As a result today, theyre not taking the stock market with it. Well tell you whats behind the move coming up momentarily. And bank of america ceo telling cnbc this morning, the customer looks strong in august. Tell that to some of the Grocery Stores and food distributors like supervalu, which is getting smacked today. After the bell, the ceo of allergan will explain why hes coming out with a major stand against drug price increases. Thats a cnbc exclusive with Brent Saunders coming up a little bit from now. And weve got the Company Behind the dna test that completely changed mr. Griffiths life and inspired the look the stranger in my genes. Weve been talking about the book, which came out on tuesday, and well have more about the tests themselves in jus a moment. And hes going to demonstrate how you take a test. Youre very anxious to take a dna test. Uhhuh. I think its a great idea. The whole evans family needs to take a dna test. That might be true. Well talk about that and the cost and all of that coming up. Lets start with oil popping on the new Inventory Data. Jackie deangelis with the nymex with the latest on that. It was a little bit more than a pop. It was a more than 2 move, more than 5 . We closed at 47. 62. So what happened today . Just when you thought youd seen it all, we saw inventory drawdown for last week reported by the department of energy, up 14. 5 million barrels. Its the biggest drawdown weve seen since 1999 for the week. Gasoline also drew down and imports were a little bit lower. It has a lot of people questioning today whether it was a oneoff experience because of the weather problems we saw last week, some port closures and and production problems, or if this is a start of a new trend that were starting to work through the oil glut. You have your skeptics out there. Tom clausus gave us three reasons why oil should and probably will go lower from here. The first is that hes not expecting an output freeze from opec members in late september. Add to that that this is a possible anomaly that we saw today, that the data isnt necessarily telling the whole story. And also that were expecting that seasonal demand dropoff. And you could see us trade all the way back down to 42. Some people are still calling for the high 30s. But right now, expect it to be volatile and expect to be in this range. Went we have a 5 move up, most traders might want to fade this tomorrow. Back to you. Jackie, thanks very much. Lets get to our Closing Bell Exchange for this thursday. Ken maureen from Money Matters is back with us. Hes at post nine at the new york stock exchange. Sos Jonathan Corpina and Rick Santelli checks in wearing sneakers as well, im told. Can i thank the floor of the exchange for letting this happen here today. Yes, you actually have to get special dispensation. I might get fined for this behavior. John kor pcorpina, oil and s are not correlated. We get the pop in crude and once upon a time, that would have taken the stock market with it. Why not now . I think the market is still on vacation. Coming into this short week here, i think everyone is still waiting to get through a full week and to really start to get our month going. So, yes, the oil number that came out was a little unexpected. The pop in energy is unexpected. Weve got some Short Covering there. But i think the market is just waiting and kind of lagging behind. We did see some m a activity. We have seen a little bit of movement in the secondary market. I think thats a preview of whats to come down the road. But with a very short week, a very short Economic Calendar that we had this week, i think a lot of expectation getting into the full week next week, where well have a lot more data to trade off of. Ken, whats your thinking on this market today . Well, as you know, i am a very skeptic a big skeptic of this market. And as i look at the data that we got from august, we have Industrial Production down 11 months in a row. Services dropped, the fourth biggest drop ever. Exports are down under 50, which shows contraction. Gdp year on year is now down or is at 1 , the at last three quarters in a row, yet the market is at alltime highs. Why is this all happening . My view is that it is a its what im calling a government infusion bubble. We have the Central Banks just herding everybody into the stock market and youre getting this diversion and the farther out gets, the big the contraction is going to be when it finally comes back to ground. But to be fair, ken, youve been skeptical quite a while as the market has continued higher. Youve missed a move here presumably if youre not in this market. Being skeptical does not mean that im not in the market. We actually started buying back in in april, very cautiously. Right now, our allocation is 60 to the stock market. So weve participated, but keep in mind, bonds are also doing very well this year. So having money in bonds has helped us. Bonds have almost done as well as stocks this year. Rick, the European Central bank did no more this morning than it could have, i guess. And where does that leave us . I think the entire market was dragging down by the ecb today. I do think that you have to look at the world in terms of a spread. If were talking about tightening and they didnt throw anymore ammunition in the bazoo bazooka, and everybody has the same position, basically, not worried about rising Interest Rates, not worried about the drip of the medicine thats slowed down a bit, i think it goes a long way to explain the markets. Whether you looked at portugal, spain, the euro curve, the u. S. Curve, its all pretty much the same. Short maturities are up about three basis points. Middle maturities a little more, the long end, six, seven basis points. And its everywhere. And i really do think, were at the top of a 5 1 2week yield range. We know that the equity markets have been in a range. If it moves anymore, youre going to see a whole lot of Ralph Cramden switching sides on this ship at the same time. And i think that may have even trumped the good news in oil, if you believe in the relationship, as bill was questioning, between Higher Oil Prices in the equities. A rise in rates right now wouldnt be welcome and the notion that mario draghi, even though he didnt say he was going to do less or wasnt going to do more, or wasnt going to extend qe past march, the fact that he didnt say, the market always demands more. And they didnt get more. Yeah, john, do you agree . If there was a real conviction that the fed was going to raise rates this month, do you think the stock market would be going south . I do. And i think that conviction is not there. And i think weve gotten so complacent that this can is going to get continually kicked down the road and were going to use different excuses, why its not going to happen, meaning the election coming up and then well get towards the end of the year and this will be a 2017 topic. I think this market just continues to yearn for something, to grab on to. But at this point right now, its very, very small straws. What about the transports, jonathan . Theyre up another 23 points today. They had a nice move yesterday with some of the airlines moving higher. Could this be could there be something more to this . That might be a correlation tied to Energy Prices and oil there. And i think once again, we have nothing else to really focus on or any other bigger, major stories that are out there, that we try to get something really granular on Something Like that. But once oil prices come back down probably next week, that will be a different conversation to have. Ken, you said youre 60 in the market. Im curious, what did you buy . What do you own right now . Are you defensive . Investing for growth . What are you looking at . Were very defensive well, were very diversified. Were not trying to pick a particular area, but if the Federal Reserve decides not to raise Interest Rates, i think foreign markets will benefit from that. Higher Interest Rates will hurt them by dragging money away from those countries and into the United States. So we have an exposure to that right now as well. All right. Thanks, everybody. Thanks, folks. Thank you. Thank you. About 50 minutes still to go in the session here. Keeping an eye on market and also shares of twitter sinking today, as a Critical Board meeting is being held to discuss the future of the company. Our own Julia Boorstin reported earlier and you can see the shares down nearly 6 on the news that krceo jack dorsey has only a few more months to fix things and there are no bids on the table right now. Lets bring in kurt wagner. Kurt, theyre having this frank discussion today, the board is, about the companys future. But from what i understand, jack dorseys job is not on the line. Is that right . Well, i think it could be a little soon. It has been about a year since hes took over as ceo. Not a lot has happened since. The stock is down significantly since that time. But i think that ultimately, what theyre here to decide is whats the next step in terms of, should we prep this company for a sale . Should we do some layoffs . Should we do other costcutting things. And i think theyre going to give him at least through the end of the year. They have the football streaming deal thats lipgt now. I think thats their lastditch growth effort. So i dont think well walk away from this with jack dorsey out of a job. But i think theres pressure on them to make immediate changes now. Mike, what do you make of these reports that there are no suitors . You know, it would be hard to really see if a suitor was coming, because if youre trying to buy a company, youre not really publicizing it. I do think there are some deals out there that make sense for twitter. I think google is a really logical buyer for the company, and i think that would be a pretty good outcome for twitter. Right now, their major is the product is complicated enough that users are not, you know, staying with it. And the user growth has been really lackluster. And thats the thing that really needs to get turned around in order for the company to get to a higher level of value. So i think one of the things we saw on the q2 report is that they sort of took their eye off of their product improvement ball and focused more on video. So well see how that plays out over the next couple of quarters. Michael, what about going private . Just go out of the public eye and try to turn things around then . Well, you know, thats a possibility, but you do have some investors in twitter that have been there for a quite a long time and their patience is running thin and you would need to find a new pool of capital to do that and its not clear where that could come from right now given that the fundamentals in the business are sort of headed the wrong way at the moment. And kurt, there is that nfl game or games that twitter is going to be streaming coming up here. How important are events like that for this company, or do they not move the needle that much . Well, i have a tough time believing that they really are going to move the needle. I think theyre very important to twitter. Twitter has put a lot of time and effort into talking about these deals. So you mentioned the nfl thing. I believe its going to be ten different games throughout the season, the first one being next thursday, so a week from today, that theyre going to broadcast. And you know, theyve made some money by selling advertising against this deal. The question is, is anyone going to sign up for twitter, just to watch an nfl game, maybe on their phone . I have a tough time believing that, especially because theyre offering this for free. You dont have to have a twitter account to enjoy this streaming feature. But they are, you know, they have a bunch of these streaming deals going on. They say this as the future for them, this kind of digital tv thing. I just dont know if its going to be big enough to get them out of the hole that theyre in. Kurt, we mentioned, no suitors, but they havent really put themselves up for sale. Do you think that they would get some bidders if they did . I think if they certainly came out and said openly, hey, you know, were on the market, come give us your best bid, i definitely think people would come forward. I dont think theyre at that point yet. I think what theyre, you know, probably trying to discuss today and looking forward to in the future is again, you know, how can we best position ourselves to be in an attractive buy . A lot of people think theyre too expensive right now. So, you know, what can they do around the basically making twitter a more attractive option for someone like a google or someone else maybe in the media world to come in and shell out, you know, 15 to 20 billion. Feels like yahoo and im sure thats not what theyre looking the for. No, thats not it. Kurt wagner and michael graham, thanks for joining us today. Thank you. Imagine if i would worn mine my platform speakers i used to wear in the 70s. I think you should adopt i dont have them anymore. Now theyre my glitter rock days. I didnt see those pictures in the book, by the way. Glossed over that period. Nor will you. The dow is down 41 points today and the s p is down 4 with about 45 minutes left to go in the session. The nasdaq is down 24 and the nasdaq has been the record setter this week. Up next, mixed the signals on american shoppers. The head of one of the nations biggest banks says the consumer is in good shape. Meanwhile, though, more grocery chains are cutting their profit outlooks. Well sort things out, whats happening, coming up. And later, allergans ceo discusses his manifesto, touting the companys commitment to limiting drug price hikes. Well discuss whether he thinks other companies will follow suit. By the way, tomorrow, dont miss Steve Liesmans exclusive with Federal Reserve governor, dan tarullo. Thats tomorrow at 10 00 a. M. Eastern time on squawk on the street. Hey, youre watching cnbc, first in business worldwide. Hey, its been crazy with school being back so were constantly going over our data limit. Oh, well, now all of our new plans come with no data overages. Wow, no more overages . So that means. Go on. Say it. Well finally be in control. And were back. Introducing new at t plans with no data overage charges. [ala m beeping] the highly advanced audi a4. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. At 43 minutes left in the trading session, lets show you some movers on wall street today. Tractor supply, posting one of the worst declines on the s p. Several firms, including credit suisse, downgraded the farm bureau and hardware retailers stock after Tractor Supply cut its fullyear profit guidance, citing key sales in agricultural regions. Pier 1 tumbling, as well, with analysts at anoppenheimer and Raymond James downgrading that stock. Pier 1 says its ceo, alex smith, is retiring at the end of this year. Kelly . Now bank of americas ceo speaking exclusively with our wilfred frost earlier and he had positive things to say about the state of the american consumer. Wilf joins us now with more. He did, indeed, have positive things to say about the consumer, particularly over the summer. If you look at the month of august, it will be the strongest consumer growth in debd and credit cards this year. And thats backing that out. The yeartodate semester on debit and credit cards are spendispend ing 4. 7 more than they did last year and the space is accelerating. The consumer is in very good shape. On the commercial side, he said credit quality was pretty solid, although there was some nervousness mo nesness amongst ahead of the election. When asked if he had confidence in the recent record highs, moynihan had this to say. Its clear that theres been low volumes, its been a oneway trade. But the question really is, experts sitting out tells me, where else is the money going . With dividend yields and southern yields, the money will go into the equity markets, because theyre looking for returns. Its complacency then says people are missing something, and rve every day has a view of this market. But its clear the moneys going into the equity markets because of that lack of yield and lack of other return areas. He also said that a 25 basis point rate hike, if it came, would be worth roughly 1 billion to their bottom line, in in terms of net interest. So they are cheering the fed. Of course. Get busy there, right . Of course. How do we reconcile what his view is of the consumer of being in pretty good shape, solid right now, in his word, but some of the data we get from the retailers themselves is not so great. Absolutely. And thats really why the question was so pertinent. The lone growth figures we saw across all of the other banks was very strong, given that weve seen some of those soft other configuration that youve mentioned and gdp numbers adds well. One worries, is this a latecycle boost on the Consumer Credit card front thats not going to come through. The message, both from jpmorgan earlier in the summer and from Brian Moynihan is absolutely not that. Its a positive sign that the consumer is not worried about credit quality, which suggests its a bullish thing of a pickup to come in the economy that we havent seen yet. The only little wrinkle is what everybody is now saying about this funnel, this push, this leap into equities as being the only alternative. And i think thats something that we all have to continue to worry, when you hear it from someone like Brian Moynihan. He ceasees the volume weve see over the summer. And with yields so low, theres a push into various dividend stocks. Its hardly a dividend of stocks when you say, how else are you going to invest your money . Thanks, wilf. But not always right on the consumer front, supervalu joining the list of grocery chains lowering their profit guidance. Susan lee joins us now. Whats going on with consumers and their food . Lets be clear, its not because americans are eating less or shopping for fewer groceries. I can tell you that from my own expanding waistline. Its because food prices are on track for the longest stretch of declines, falling for nine straight months and counting, according to the bureau of labor statistics. Its because theres an oversupply of eggs, of meat, and milk. So a carton of eggs now costs 40 less in july than they did a year ago. Mil is cheaper by 11 . Beef prices have fallen 7 this year. And a number of grocery chains, including sprouts and supervalu have cited food deflation as a reason that they have cut their earrings guidance. Combine that with a very an ultra competitive pricing environment thanks to big players like walmarts getting competitive, europes aldis entering the u. S. s grocery market, that means everyones undercutting on prices. It favors bigger competitors like krogers and walmart, who can absorb these price cuts. Krogers reports nor s tomorrow morning. The stock has been hammered so far this year and trading at their lowist since 2014. Back to you. Its interesting this happens, even as were reading about kmart adding some groceries and target doubling down. Why is this even like a desirable space to go into . It seems like the dynamics are horrible. Look at walmart. I think thats an example theyre using. Walmart really being helped by grocery aisles. In fact, foot traffic increase in walmart thanks to cheaper groceries theyre offering. I guess, target to me, theyre probably think, if walmart can get more people into the stores because of cheaper groceries, cheaper milk, cheaper eggs, we can do the same. Maybe theyll go and buy something more expensive a few aisles down. The loss leaders its all about market share, not about profitability. And you can go and get a haircut while youre in the store. Its a great story and well tell you about it later. Thanks, susan. Something about thomas paine, but its a long story. 40 minutes left in the trading session here. I cant believe you were about to tell that story. Were down 45 points on the dow. Coming up, allergans ceo speaks with us exclusively about his bold pledge to limit drug price increases, coming up. Up next, the ceo of the dna Testing Company that changed bills life forever. Stay with us. I want a piece of him. Across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, Creative Business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. Let us help grow your companys tomorrow today at business. Ny. Gov enepeople want power. Hallenge. And power plants account for more than a third of energyrelated carbon emissions. The challenge is to capture the emissions before theyre released into the atmosphere. Exxonmobil is a leader in carbon capture. Our team is working to make this technology better, more affordable so it can reduce emissions around the world. Thats what were working on right now. Energy lives here. Welcome back. Shares of nike lower down about 2. 5 after Piper Jaffrey downgraded the stock to neutral from overweight, although it is maintaining its 58 price target. The stocks at 56 right now. The firm cited increased competition in europe, muted innovation, and consistent markdowns in that category. Now, before you start researching your family history, youd better be prepared for some unexpected results. Bill, four years ago, submitted a couple of cotton swabs for dna testing, part of a family project, into ancestry, and got the shock of his life. If you havent heard, i found out my father wasnt my father. And i blame this man, max blankfeld, from family tree dna is the family that processed my initial test. Are you sure that test was accurate . That result . Come on . Absolutely sure. In fact, we have tested, since our inception in 2000, we have tested hundreds of thousands of people and we are pretty convinced of the results. We have a very state of the art lab and a very professional staff. And im stunned to learn that im not the only person thats gotten a result like that, huh . Yes. There is a quite relevant pes g percentage of people by doing their dna tests, they find out about not being really part of the family that they thought that they are part of. And many other people find about ancestry that they were not aware of, in terms of their identity. Max, as the price of these kits falls and more people are doing it and more people entering this space, what is your own Business Strategy . And how is demand for these kinds of tests . I can tell you that we were the First Company to start with this in 2000 and in the beginning, it was really very difficult for people to understand where this is where this was going to. But in the last few years, the business has grown quite substantially. We test hundreds of thousands of people. We perform over 500,000 tests, different tests, a year. And more and more people are coming into it. The price of the test also has fallen substantially. The most common test that we are selling now goes for 79. And ive got to tell you, kelly here, she is so anxious to take a dna test, can you demonstrate what how it works when you take a dna test . Youve got a kit there, dont you . Yeah, absolutely. Actually, its very simple. And let me show it to you. Its a cheek swab that you scrape inside of your mouth, in your cheek. We dont need blood, but we need a good scraping. Once this is done, you simply plunge the tip of the swab inside the kit and we send it back to us. And we ship the kit all over the world. Do you think if i had done the other cheek, i would have gotten a different result . Not really. And in fact, we send everybody we send a couple of cheek swabs and a couple of vials so we can have enough dna to perform a good test. Uhl tell you a funny story, very quickly. I didnt mention your company in the book. I didnt want to get anybody in trouble i know this. The fact that yours was the company that i took the test from. But i took a test from another company, so i would get a second opinion, if you will, and it was the genegraphic society, and i just found out today that you do the results for the genegraphic society, so it went to the same lab after all. How funny is that . Well, thats not a coincidence, because actually, we are the only genetic testing, Genetic Genealogy Company that has the lab. So we started doing tests with National Geographic in 2005. I love that. Max, thank you for joining us today. Appreciate it very much. Thank you. No hard feelings, by the way. Mom says hi, too, as a matter of fact. Max blankfeld from family tree dna. Thats interesting, that they were kind of the engine behind we were just talking about that. By the way, an scestrancestr ceo will join us tomorrow to close out our series on genealogy. By the way, it sold out of amazon. You can get it from the publisher at americanancestors. Org. Time for a cnbc news update with sue herrera. Heres whats happening at this hour, everybody. Vice President Joe Biden joining fellow democrats this morning, pressing republicans to do their job, calling for, among other things, a clean zika funding bill. Peoples health, the wellbeing of unborn children, the health of the country at large is at stake. Act. Thousands of coal miners, their families, and supporters rallied at the u. S. Capital to make sure Congress Votes to extend coverage for retired miners. The senate could vote on the miners protection act next wednesday. U. S. Army commander colonel brett sylvia says that Iraqi Security forces have been moving faster than anticipated in their offensive against isis. Speaking at a u. S. iraqi coordination facility in northern iraq, he said he was optimistic that mosul, iraqs second largest city, could be retaken before the end of the year. And a big cleanup in delaware this morning, after a truck carrying pennies overturned. Witnesses say the driver lost control of the vehicle, spilling its load of unstamped pennies on to the road. No major injuries and you cant use the pennies, because they havent been stamped yet. Thats the cnbc news update this hour, you guys. Back to you. Oh, my goodness. Tied up traffic for a long time. You could make a joke about helicopter money, but this is or pennies from heaven. I think they should do away with the penny. Its useless. Oh, please. It just weights you down in your pocket. What is the point . Electronic money is the future. Its iconic, bill lose the penny. They lose money on it too, right . Exactly. Thank you, sue. Cast your vote at thank you. What was that website . 30 minutes left in the trading session with the dow down 34 points. We have a leading trader joining us from the floor of the exchange to tell us what hes watching going into the close here. And Hillary Clinton holding her first News Conference since december. Well have highlights for you, coming up. Ok team, what if 30,000 people download the new app . Were good. Okay. What if a Million People download the new app . Were good. Five million . Good. We scale on demand. Hybrid infrastructure, boom. Ok. What if 30 Million People download the app . Were not good. Were total heroes. Scale on demand with the Number One Company in cloud infrastructure. Hewlett packard enterprise. Experience the thrill of the lexus is f sport. Because the ultimate expression of power, is control. This is the pursuit of perfection. Welcome back. Shares of Chesapeake Energy are rising sharply in heavy trade volume, up 13 today. And Barclays Says capex has dropped to an estimated 1. 3 to 1. 8 billion this year. It was 14. 7 billion as recently as 2012. Chesapeake reporting that cost per barrel had dropped to nearly half over that same period and investors are cheered. Bill . 24 minutes left in the trading session here, with the dow down 24 points. Joining me is keith grasso from stewart frankel. Sideways market continues, not even an ecb meeting or a pop in oil can move this. You have a theory, or one youve heard, that theres a lot of optio options hedging going on. And does that explain why the vix has remained stubbornly low at the same time . I think so. People are hedged out so properly or so much so that the markets stay flat. So theres not that need for volatility, or it squashes that volatility that were often youd to, in the market. But that, too, might come to an end, eventually. By what catalyst . What are we waiting for . I think you have to get somebody off sides. You have to get some type of a news event. Maybe it is the fed, but i think to the point, we already know that. We already know about europe. We already know about the fed. So it has to be something that shocks the market. Sort of like the ebola crisis. Sort of like an unforeseeable event, which if i could tell you that and they could tell you that, it wouldnt be unforeseeable, but all of those people who say, whats going to really take us off a cliff . We know about this, this, and the other thing. You know what . Then there would never be a selloff in the market place. Its got to be something that catches us on our heels. Very quickly, what are you doing in the meantime . Hedging . I think you have to sit with positions that you feel comfortable, and you have to trade this market like were seeing today. We see energy leading, but also, we see utilities leading, too. Conflicting right there. Search for yield, buy things that you feel like you could sleep at night and put your head down on the pillow and not worry about the risk. And those shocks, really quick, when you see them sell off, theyre only for a short duration. Unless its going to be something that changes the market direction, sit on good companies. All right. Very good. Thanks, bull. See you later. Kelly . Thank you, guys. It was a rare event today. Hillary clinton held her first News Conference since early december. John harwood joins us with the highlights. Hi, john. Hi, kelly. You know, Hillary Clinton used that Rare Press Conference to tee off on Donald Trumps statements in last nights commander in chief forum. She went particularly after Donald Trumps criticism of u. S. Generals who he said had been reduced to rubble under president obama, and his praise for america eeamericased a adv Vladimir Putin. Bizarrely, once again, he praised russias strongman, Vladimir Putin. Even taking the astonishing step of suggesting that he prefers the russian president to our american president. N now, that is not just unpatriotic and insulting to the people of our country as well as to our commander in chief, it is scary. Now, of course, donald trump says he can work with Vladimir Putin to combat isis, but he switched gears in his own remarks in cleveland this afternoon, citing his superior ability to create jobs. She said she was going to bring tremendous jobs back. It will be wonderful. Just like shes saying now. She wouldnt how to bring a job back. She would havent a clue. So, its all talk, but nothing happens. And thats whats going to happen with our country on jobs and nobody is going to bring jobs back like donald trump. Now, donald trump got some good news this afternoon from new swing state polls, from quinnipiac university. They show Hillary Clinton with diminished leads that they still exist, but smaller, in pennsylvania, as well as North Carolina, but donald trump in a dead heat with Hillary Clinton in the key swing states of ohio and florida, guys. Well be watching all of those swing states in the next few weeks. Yes, we will. Let me take you to the third candidate, though. Gary johnson, how much damage do you think was done when he didnt understand the aleppo question . Well, he didnt help himself and he needs every little bit he can get to try to move from the 10 where hes been now to the 15 he needs to get on the debate stage. On the other hand, bill, al of people are mentioning Gary Johnsons name today. People are becoming aware that there is of candidate in the race. So, you never know exactly what the reverb is going to be from a mistake like that. It was embarrassing, but he also was fair human in acknowledging it. He went on the view and he said, no excuses, i was thinking of an acronym, not exactly what Mike Barnicle had been asking about. There wasnt a specific reference to syria. So its hard to forecast exactly what its going to do, but certainly, it embarrassed gary johnson. Well see whether he can make anymore headway in the polls in the next couple of weeks. As he tries to make it into that first debate. Thank you, john. Thanks, john. Our john harwood in washington. About 20 minutes to go here. Apple, one of the worst performers, i think, the worst performer on the dow today, down nearly 3 . The dow itself is holding up relative to that with a decline of 2 10 of a percent. There are 60 days now until election day. And former deputy treasury secretary and current Hillary Clinton supporter, roger altman says the race for the white house is over. He explain whys, coming up. And also, apple shares following after announcing its new iphone 7 yesterday. The Company Also Announced today its not going to release preorder sales numbers, because they are more a reflection of apple supply than demand. Up next, well look at all the apple changes and discuss if this is an opportunity for android, coming up. Welcome back. In a statement today, apple is saying it will not release iphone 7s preorder numbers, as its done in the past, saying, quote, these initial sales will be governed by supply, not demand, and weve decided its no locker a representative metric for investors and customers. Therefore, we wont be releasing a first weekend number any longer. Lets talk about that and other things involving apple. Joining us, sean carolyn and andrew marvenick. Sean, they did this last time, i think, the last model, they didnt release the figures. Should we make anything of that . The initial sales figures. I dont think so. Apple decides what they want to release and what they dont. I think its a great device. Well see what happens. What do you think about the argument that this time is different . You know, that supply somehow wasnt governing things in the past or that this metric is no longer relevant. Look, you know, the news has been out for a day, so, well see, but, i mean, i think the market always decides once the device comes out, people get it in their hands, the reviewers get to really do a rundown. I think theres a lot of stuff going on, both in the phone, but also beyond the phone, the air pods and battery cases and the watch, i think, is a lot more compelling. Its not just the phone, its a bigger ecosystem at play here. Andrew, whatd you think, of what you saw yesterday in the introductions . Well, wii think the way we follow all of these things, we kind of knew ahead of time what the big features were going to be. We just wanted to see how apple was going to sell it. And i think theyre doing a good job. Theyre selling it, you have this whole new ecosystem with the new headphones and new watch. Its a compelling device portfolio. But they always come up short. They cant make as many as people want. And thats a good problem to have, no matter what side you are. What do you think about android, shawn, and the galaxy note 7. It got a lot of positive reviews, before it had the incidents with those fires. Galaxy is great device. Android is a great operating system. You know, the market share numbers are out and android is in the lead. But a lot of that is, you know, lossexpensive phones. But apple iphone is still the premium device. Im not expecting big market share shifts because of this thing. Its pretty stable. There are a couple of viral features that are interesting. The imessage, app store is interesting, and then the kind of speaker piece the speakerphone mode, where the phone is supposed to replace a blue tooth speaker. That could get other people to buy, but i havent heard that yet to see what the difference is going to be, but its interesting. I was going to ask you if iphone is the premiere device on the market, shawn. Because the reviews in the journals basically say, you know, you look at the iphone relative to the screen quality and width and everything thats on a samsung device now, and the reviews just dont sound like theyre talking about the most exciting, innovative premiere product on the market anymore. You know, i think thats the difference between reviewers and consumers, is consumers will buy what works best for them, and theres a lot of subtleties with regards to usability and the software and how easy it is to use. But the numbers speak for themselves, if you look at developers, who obviously we do a lot of business, as a Venture Capital firm. The developers will always Fund Application development for the iphone first, and then for android, because apple customers pay the most money for their apps. And use them the most. And that sort of thing. Andrew, the buildup buzz was all about the virtual jack. Now its about the air pods. What do you think of those things. I think that a lot of manufacturers have been making great blue tooth headphones for a long time. Apple has this seamless connection. They do all of this very well and do the same thing with apple watch, where its easy to pair it up. But in the end, i dont think the air pods will be selling any iphones. I think in the end, thats going to detract away from the iphone, if anything. Now, a lot of people are still going to buy the iphone. But i think anybody that was kind of on the fence, their going to look at this and say, well, now i have to buy some extra Wireless Headphones or some different lightning wired headphones. And and if im going to buy different stuff and switch over, maybe im going to consider Something Else that i was already considering and thats going to be android. Gentleman, thank you. Shawn carolon, thank you. Im telling you with the air pods, you should wear them that y. But if you switch ears, they would stay in. Because theyre now made to sit right in the ear, so they dont fall out and you lose a 139 pair. Ten minutes to go. The nasdaq is down to. Just like yesterday, art cashin stopped by and said the market to close orders is 300 to buy. When we come back, our next guest is bullish on energy and defense stocks, shell tell us which ones, after this. But with growth comes complexity. Thats why so many innovators are on the ibm cloud. Like refinery 29, with nearly a billion views a year. Or runkeeper, a training app used by over 50 million runners. Or Game Developers whose popularity depends on launching new updates fast. Helping to keep a companys success uncomplicated thats what the ibm cloud is built for. Helping to keep a companys success uncomplicated oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at Td Ameritrade. Amazing sleep stays with you all day and all night. Sleep number beds adjust on both sides for your best sleep ever. Dont miss the biggest sale of the year all beds on sale with the queen c2 mattress only 599. 99. Final days ends sunday. Know better sleep. Only at a sleep number store. About eight minutes left in the trading session, with the dow down about 46 points. Joining us on the floor of the exchange, heres sarah hunt from alpine funds. So many people come through, money managers, day dont want to invest for yield, thats a crowded trade. Youre not afraid to do that, are you . No. We run dividend funds, so if i were afraid, that would be a problem. We think theres a lot of room in dividend funds. You see some of the yields in energy, and theyre still pretty good. We like bp in particular for that reason. There are other places. Defense has pretty good yields, and theyre returning a lot of cash to shareholders. I think right now, people are so strapped for yield, because youre looking at all of these things that are going on. The ecb, which did not extend its program today, but is pretty much expected to in the next few months, youve got negative Interest Rates across a wide variety of bonds, and people are just looking everywhere they can for yields. Its amazing, henkel and san fei bargained on fiveyear terms and negative rates. So even if this trend youre talking about continues, it cant be a positive development for all of this to be happening. No. I would think its really a difficult period of time right now, because youre looking at a lot of places where real price discovery is hard to have, because government bonds are being bought by Central Banks. And now Corporate Bonds are being bought by Central Banks. So youve got a market that doesnt have the same kind of pricing discovery that it used to have, because youve got a backstop of all of the Central Banks that are trying to push down Interest Rates in the hopes that somehow its going to fix thing. It makes it a very difficult environment to invest in. Give us a for instance. What do you like here . We like harris. It has a nice dividend yield. Theres an activist investor in there now, and thats moved the stock up. But we like the big cap defense. We like raytheon and lockheed. I just mentioned bp. I think bp has enough cash to continue to pay its dividend. Most of these guys are pulling back on their investment, so youve got some cash thats being saved there, which will ultimately lead to Higher Oil Prices. When that happens is a big question, because the supply demand balance is still a little tricky, but in the end, you can get some really nice yield out of some of these stocks. Good to see you, sarah. Sarah hunt from alpine funds joining us today. Well take a break with the dow down 47 points and the closing countdown in a moment. And after bell, we are going to speak exclusively with the ceo of allergan, Brent Saunders about his attempt to revolutionize pricing in the pharmaceutical industry. Keep it right here for that. You are watching cnbc, first in business worldwide. Remember here at ally, nothing stops us from doing right by our customers. Whos with me . Im in. Im in. Im in. Im in. One, two, wait, wait. Wait wheres tina . Doing the hand thing . Yep we are all in for our customers. Ally. Do it right. We are all in for our customers. With dand bold styling to to stay ahead of the curve. The lexus rx, rx hybrid and rx f sport. This is the rx, elevated. This is the pursuit of perfection. You recommend synthetic and can yover cedar . To me why super food . Is that a real thing . Its a great school, but is it the right the one for her . Is this really any better than the one you got last year . If we consolidate suppliers whats the savings there . So should we go with the 467 horsepower . Or is a 423 enough . Good question. You ask a lot of good questions. I think we should move you into our new fund. Ok. Sure. But are you asking enough about how your wealth is managed . Wealth management, at charles schwab. Hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. 2 1 2 minutes left with the dow down 45 points. Bob pisani joins me for the closing countdown. Im going to focus on oil first. A pretty good pop on Inventory Data today. A pretty good move there. So we saw, what, a 2 it popped 2. It had already been up almost 2 . Popped 2 on that news. Finished up 4. 25 at 47. 43. Oil stocks. They dont always correlate. As somebody said to me the other day, oil stocks will go up when oil goes up, but when oil goes down, oil stocks lately have been hanging in there. Its been widely remarked that exxonmobil doesnt go down much even when the markets go down. Thats because exxonmobil has that huge dividend, and its been owned by people who want dividends. And its the piggest oil company thats out there. The biggest diversified oil company thats out there. Looking at the tenyear yield, the ecb, the European Central bank did nothing this morning, holding out tb possibility of further quantitative easing down the road, but thats pretty much what was expected here. And you talk about damned if you do, damned if you dont. And if they came out and said welcome were thinking about buying more, but they didnt do anything. Which should have supported the people who said, we dont want anymore negative Interest Rates, dp they got criticized for not helping the markets out. So its in the a terrible position. But it does make our yields that much more attrtive. And we see the tenye down at 1. 6 . Yet, we still go sideways for the equity markets. I think the important thing is, with the equities and Energy Markets, a lot of that drawdown, apparently, was due to the hurricane. And a lot of people were saying, we may see that come back to us next week, i dont know, but the bottom line is, the Energy Market is one of the market leaders along with bank stocks, which were up again today, by the way, on a generally down day for the market, the bank stocks were all on the up side. And Technology Stocks have been holding up. So you have market leadership in tech, in backes, and in energy today. Those are the high ends of the market. And thats why the markets holding up so well. Thanks, bob. See you later dow 44 points on the Dow Jones Industrial average as we go out here. Restoration hardware has earnings coming up momentarily. Well get you that and the folks from cbs ringing the closing bell here as they introduce the new series macgyver, a throwback show there. Stay tuned now for the second hour of the closing bell with kelly evans and company. See you later, kel. Welcome to the closing bell, everybody. Im kelly evans. Heres how were finishing up the session on wall street today, with the dow dropping nearly 50 points. The s p closing down by about five to 2181. Those are about a quarter of a percent declines for the dow and the s p today. The nasdaq, about doubling that, dropping nearly half a percent or 21 points to 5259, receding from the record highs it did set earlier this week. Allergan ceo Brent Saunders promising to limit the price of drug hikes. On the panel today, cnbc commentator, mike santoli. Cnbc contributor, ylan mui, and tim seymore. Welcome, everybody. And mike, this i mean, the worst performer in the dow today was actually apple, although nike was in there, too. And overall it felt like we were casting for direction. We were churning around today. Its been the trend as were going sideways with the broad market, that theres some other market that makes a move. And part to the u. S. Stock market adjust to it. Today, it was oil getting that nice pop. Energy stocks leading the way. And bond stocks around the world lifting after that ecb decision on no new real news. And i think that had a lot of people saying, does this finally mean were breaking out of the range of lower rates in the dividend trade and all of that . It didnt really have a pronounced effect, but we have seen, as weve talked about, a move into some of those big Growth Stocks in the last week or so. That paused today, ads well. I really do feel that were being held with these opposing currents right in the middle of this range. It looked in the middle as people were reacting to the Central Banks decision not to do anything further. Theyre already buying 80 billion a month and meeting all of these limits about the stuff thats out there for them still to buy. But still, there was disappointment. Yeah, i think that actually the ecbs decision to wait and see is actually a good thing. Its a sign that the disaster that was predicted to happen after brexit didnt occur. So they have a little bit of time to sort of see how things are going, assess what more stimulus, many exact measures are going to be needed. I dont think that going even more negative on Interest Rates is off the table. Interest rates have been working and theyre willing to test the limits of exactly how low they can go and that theres a little bit more room still left there to see. So i think that actually its a good thing, that the uk economy and that the european economy has not fallen off the table, after the decision to leave the european union. In fact, my favorite little nugget from today, tim, is an analyst who was saying, between the drop and the pound sterling and apples higher price on the new iphones, its going to contribute to britains inflation, nearing 3 . Yeah, and lets hope that theres that many people in the uk that need to buy it, you know . And apple will probably be pretty happy about it. I think in line with what everybodys saying. If you think about, first of all, msci world at 13month highs, effectively. Emerging markets at 52week high. Oils rallying, financials rallying, bond yields backing up. This to me is not just rotation, but its telling you that i think there are parts of the economy that people needed to see or places that were obviously not just laggards, but there was a reason why these sectors or Asset Classes were avoided. Its a place where people are uncomfortable with valuations in many places, and these are places where largely you have relative value owning europe over the u. S. The currencies are very, very cheap, so this make sense to me. But if ooum a investor who says, i cant buy defensive stocks at these levels. I need to buy places where i think theres cylicality. But does it continue . It seems like the powerful trend is still that the dividend is your friend. That is definitely the question. I think if were going to stick with valuing stocks in general on dividend yields, then, no, that trade doesnt fall apart. But i think to tims point, the market has been trying to tell you that that was a stale strategy for a little while now. I think the big question now has some people, at least, scratching their heads, is the u. S. Stock market has held up here, even as that kind of economic surprise trend, it was really in our favor for a few weeks has rolled over. Does it matter . The consumer side seems okay, investor side, not so much. And of course, everyone feels like that means, well, fine, the fed doesnt do anything for at least a few months. To bring up this point, though, that right now were in this period of calm, both in Economic Data and the markets. The global economy, the risk we saw earlier in the year seems to have diminished. The fed has a window right now. Does that mean its going to take it . I dont think that it will. So the question is, if this meeting passes, they dont move, could we see more volatility return before they move again in december . And lets talk about one tidbit before we have to move on. In the meantime, china had its biggest outflow since january in the month of august. We got the numbers. They dropped about 40 billion and theyre below 2. 2 trillion of foreign reserves for the first time in quite some time. People are totally shrugging this off. Its nothing like december and january when more than 100 billion was flowing out. But still, is there a risk that this comes back to the forein some way, shape, or form . Absolutely. And i would argue, you know, last night, the if you want to close at six, spot six six, a little on mouse, but effectively, you know whats been going on with this currency. I would argue that the central bank of china has been in the market, intervening on the currency to try to alleviate some of this weakness. Remember, i dont think chinas economy gets the kind of, you know, elixir or the benefit from a weaker yuan at home than people think. And i dont think that theyre trying to engineer this in any meaningful way. If anything, i think theyre trying to avoid more they wont call it this, but clumsy policy. So i think people have to be Pay Attention to that part of the world. I think were talking about it, was i think people have overreacted in the past. Right now, the chinese economy, if anything, we are seeing improved commodities demand out of china. The export numbers were better, even though largely that trend is down. Chinas largely sideways, with the exception of, there is some recovery from fiscal policy that is putting some demand on commodities. All right. Definitely something to keep an eye on. Lets get to twitter, holding its Board Meeting today. Shares closed down 6 on a cnbc report that the company doesnt have any outside bids on the table at this point. Michael packer is joining us from wed bush securities with a neutral rating on the stock. How much is this Board Meeting supposed to be some sort of daily from your point of view . I dont think we should have expected an announcement of an acquisition at the Board Meeting. And i think that, you know, we probably cant expect them to confirm that nobodys looking at them. But the truth is, theres only one strategic buyer and its facebook. And of course, there are Crazy Companies like microsoft that might buy them, just because they can. But i dont see this company in play. I see the poll as being slightly broken and in need of a fix, and i think you give dorsey another year and let him fix it. If he doesnt, get somebody in there who can. Michael, you mentioned microsoft. And im not sure if maybe everybody thinks that buying linkedin was crazy, but one interesting thing about the microsoft linkedin deal was to me, anyway, it kind of rendered a verdict that, okay, linkedin is kind of a business tool. They talked about being a social network. Its maybe going to be integrated in some other stuff that microsoft does on the enterprise side. What is twitter . Would an acquisition or at least a contemplation of a deal try to illuminate exactly what this company or what the product is longer term . I mean, i think that twitter is a news source and i follow tim seymore on twitter because i get all my Market Knowledge there. I really do. I think its instant news. And i think thats the one element that facebook is missing. I think facebook really wants to be a Media Company and thats the one aspect of media that theyre really, sorely lacking. I dont see how that fit s microsoft at all. Of course, there are companies with more money than sense, so googles in the mix, apples in the mix, but i actually dont think anybodys a bidder. I dont believe the ballmer thing, and hes made plenty of bad acquisitions in his career. But i think these guys are going to be left to muddle on their own and prove out the Business Model. And if they ever start growing their user base, youre going to see revenues falling. Tim . Michael, first of all, thank you for the compliment. My question to you is, if its a Media Company you know, a news company, why wouldnt a Media Company want to own this . Theres a lot of the core Media Companies who are in the business of news, that really dont have the presence that twitter has, even if they havent monetized it yet. And Intrinsic Value seems to be very hide. Shouldnt this be owned by a Media Company . The one that actually makes sense is probably news corp. , but theyre the ones who are still kind of committed to print. I dont see them as an acquirer of, although i think its actually a pretty good fit. I dont see disney. Theyve had bad acquisitions. I dont see warner even wading into this. And again, most of Media Companies arent really in the news business, except for news corp. So i dont see it as a great fit for any of them. Michael, where does that leave twitter, finally . Twitter has to figure out what they want to be when they grow up. And what they should want to be is the first source for news, for everybody. I mean, i actually think their adjustable market is the 2. 5 billion people on the internet who have an interest in anything. If it would make the interface easy to use, make it clear to people who dont use the service that they can get realtime information from tim seymore, as soon as hes off this show, then those people are going to choin. Thats the point. Everybody watching cnbc should be following all of you guys on twitter, because we get a lot more information. Especially me. Definitely. So i was going to say i guess we should leave it there, but i was going to joke about your comment about the 2. 5 billion people on the internet are actually interested in something, michael. Presuming you mean everybody online will want their news if they can get it filtered in the right way, according to what theyre interested in . By something, i dont necessarily mean news. I mean, theyre interested in entertainment. Theyre interested in soccer. Theyre interested in the olympics. Theyre interested in brexit. I mean, it doesnt have to be news. Its just that twitter hasnt done a very good job of getting interesting people to post. So you actually dont see Kim Kardashian posting on twitter first. She posts on instagram. I dont know why, but they should incentivize her to post on twitter and people who follow her there would track her there realtime and thats more interesting. Good point. Thanks for joining us. Michael pachter there. I want to draw your attention to shares of restoration hardware. Earnings beating expectations, 44 cents adjusted. The estimate from wall street was 29 cents. Keep in mind, this future earnings beat is being helped by shipping. The company says, because our ability to ship products earlier than anticipated, that resulted in a pull forward of revenue and earnings into the Second Quarter from the Third Quarter pch comparable revenues declining 3 compared to a 16 increase last year. That is from the Second Quarter. The company also saying that they are making several Strategic Investments and changes to their Business Model in fiscal 2016 that are temporarily depressing Financial Results in the shortterm, but they believe will help in the longterm. Were looking at the stock up 9 in extended trade. This is one of the highend retailers that has been under a lot of pressure this year, down about 50 yeartodate, i believe. And remember, this was the company that did say sales were hurt by the volatility in the stock market back in february. So we will get on that conference call, kelly, to get you those highlights in todays session. Seema, thank you. The restoration hardware, 52week high was like 106, mike. This was a favorite revival story in retail for a while. Seema mentioned that february surprise. The stock fell from about 51. So obviously were still knocking around in the lower end of that range. And i think more than a quarter of the shares are short. Still, its kind of a dog fight. A 9 pop there, as it does beat on earnings from restoration hardware. Tim, well let you go. Theres more coming up next hour on fast money with bob pec joining them to predict what twitters future will look like after todays Board Meeting. Huge drug price hikes have outraged consumers and lawmakers, but allergan is pledging to limit price increases to singledigit percentages. Up next, the companys ceo, Brent Saunders, joins us exclusively to tell us why he made that decision and whether its in the best interests of shareholders. Plus, did tesla just solve its cash crunch by getting a big line of credit . Well give you those answers coming up on the closing bell. Youre watching cnbc, first in business worldwide. Where we explore. Protecting biodiversity. Everywhere we work. Defeating malaria. Improving energy efficiency. Developing more clean burning natural gas. My job . My job at exxonmobil . Turning algae into biofuels. Reducing Energy Poverty in the developing world. Making cars go further with less. Fueling the global economy. And you thought we just made the gas. Energy lives here. Welcome back. Allergans ceo Brent Saunders taking on the drug price wars by pledging to uphold a social contract with patients in this company blog post. Saunders vowing to limit allergans drug price hikes to once a year and keep those prices below 10 . Lets head out to boston, where meg terrell is at the Wells Fargo Health Care conference with allergans ceo, Brent Saunders. Meg . Kelly, thank you so much. Brent, thanks for joining us. Thanks for having me, meg. Lets start off with the news of the week, your blog post, your social post about drug prices. One of the things that was so interesting was you said how this was hard for you to write right now. Have you gotten pushback from colleagues . Why was this difficult to write . Ill tactually the reverse. My colleagues can unanimously supported me and my executive team got advance notice and we all talked about it and they were fully on board. My board of directors endorsed it completely. Interestingly, since we did it on tuesday, ive heard from numerous employees all over the world, even though its a u. S. Issue, ive heard from physicians, ive heard from shareholders, ive heard from peers, ive heard from Smaller Company ceos, all very encouraging feedback so far. So one of the things youve said is that you condemn these egregious or outlier pricing increases. Where do you draw the line on whats an outlier, whats egregious . Look, i dont think its a bright line that were going to draw here. I think its a fact and circumstances analysis. I think if youre taking all drugs and youre building an entire Business Model over price increases versus investing in innovation and looking for cures and treatments around that medical need, youre probably moving into an egregious pricing decision. You would have to look at the exact facts of the situation to determine if, in fact, thats true. But youre setting yourself up for that type of criticism. When you mention older on the market products, that sort of also speaks to what we saw proposed by Hillary Clinton, to have this sort of drug Pricing Panel that would observe behaviors and would have the potential to levee fines or do other measures. What do you make of her proposal . I think it makes for a Good Campaign promise and its a populist issue and you understand and empathize why, because its bad behavior and its hard for the public to understand it, but this isnt something that government can solve, because its a fact and circumstances test. So i would rather see Industries Like allergan is doing, were making a very bold commitment to say, were not going to engage in this practice. Were going to focus on driving our business the way it should be if youre an investor in our business, on selling execution, on entering new markets around the world, on new product launches, and most importantly, on innovation, investing in r d, and finding cures and treatments for a medical need. So youve drawn the line at sort of 10 or less than 10 once a year. Some of our colleagues, even in what people would say are the innovative space, like an ely lilley or a pfizer. Lily has taken 12 to 15 price increases for the last five years, pfizer, 9 to 15 over the last four years. Should they be on notice . Do they need to take a pledge like this . I think everybody should take a look in the mirror and examine the practices that theyre taking in this arena and say, does it hold up to the social contract we have with patients . Those companies all invest in r d. So we applaud that, right . Thats good. And theyre all looking for cures and treatments to unmet medical needs. We applaud that. But are they taking price increases solely to drive their business to make up for shortfalls in other areas, or are they doing it because they can justify it by looking in the mirror, understanding the value of the medicine that theyre bringing to the market, and can with transparency, explain the immediate for that price increase. Kelly . Brent, hi, its kelly. And we all remember the episode back when valeant wanted to overtake allergan. Now those shares have fallen precipitously. Would allergan ever look to overtake valeant here . No, i dont think so. Our model is growth pharma. We have been inquisitive, without question. But every one of our acquisitions or deals has been growth oriented. We look to buy young products that we think we can put into our hands and do better with and really grow, or we buy r d assets, and best i can tell, valeant just doesnt fit that bill. The other thing i can say, were not looking at doing transformational m a. Weve built our company. So were looking at stepping stone deals where we can add to the therapeutic presence and look for cures and treatments for unmet need. We announced one on tuesday, gene therapy for blindness that is early, but very interesting and very exciting for people suffering from certain rare form of blindness. You know, your comments about drug prices are kind of an implicit critique of Heather Bresch at mylan whos created a firestorm over these epipen price hikes. How much of what you are now saying is a response to that . And could they just simply lower the price of the epipen here on the spot if they so chose . Well, it wasnt meant to be a criticism of heather or any one particular company, but rather the aggregate actions of some egregious price takers. And really, the purpose of what i wanted to write when i wrote the blog was to be positive. To talk about what allergan could do to change the conversation. What would we want to be held accountable or responsible for, how could we be transparent, and how can we provide our medicines in a more affordable way. So we didnt try to take shots at anybody else in the industry or in the Distribution Channel and really stay on focusing a on what i can control as ceo of allergan, which is what we do. And look, if he wanted to cut the price of the drug, they could do it. We could do it, they could do it, anybody could do it. Understood. One final question, because a lot of this has been about the social contract, prior to apples tax issue in dublin, the Pharma Industry was the one in the crosshairs of all of this, accused of being tax evaders. The government went after pfizers team to take you guys over to get those tax benefits. Do you find that inconsistent with the social contract youre promoting when it comes to drug price hikes here . I dont. I think what we pay all the taxes that, in all the jurisdictions in the world where we operate, according to the law. And, you know, taxes are essentially a responsibility a legal responsibility, not a moral responsibility. And theres no person that doesnt take every deduction thats available to them. If youre wealthy and you take your mortgage deduction, is that unethical . So i think we all avail ourselves of r d tax credits. We all look at maximuming our tax structure. It is simply a cost of doing business. And if jurisdictions want to be more competitive, they should lower their tax rates or create incentives for businesses to brick their employees there. I want to circle back on something you said earlier on m a. You have been called the chuck norris of pharmaceutical m a. You sold your generics business to teva, have 40 billion in proceeds sitting there, but you say you dont want to do transformational m a, but your nape is always on the table when something comes up, like a viagen. Thats not something you would do . Well, were in seven therapy iic areas, were leaders in virtually all of them. Theres still so much unmet need. We could do so much more in medical dermatology, same customer. And seeing as we have a strong alzheimers franchise and a strong franchise, we could move into parkinsons, ms, epilepsy. Theres so much unmet need there, namely alzheimers, where theres still so unmet need. So we have a tremendous opportunity to grow our business in the categories we compete, and the geographic expansion is a tremendous opportunity for us as well. Were just about out of time, but in the areas where youre a leader, visioncare is one you didnt name, but bausch lomb . On your program yesterday, joe papa, the ceo of valeant, which owns bausch lomb, said it wasnt for sale. He said never say never. I know bausch lomb well, i dont think that would be a great fit for allergan, because its a, cob lens company and a pharmaceutical otc company, and were really a true innovative pharmaceutical company. Were looking for things more like retrosense, where were doing gene therapy to solve blindness. Were looking at new treatments that perhaps can change the paradigm for amd and d e. And thats where we want to be. A lot more to talk about. Brent, thanks for joining us. Thanks for having me. Meg terrell with allergan. Ceo Brent Saunders, fascinating stuff there. Tesla, meanwhile, securing a 300 million credit line for its leasing program. Up next, well look at whether it fixes the electric car makers cash crunch. Plus, find out which icon of Silicon Valley is turning in his tesla for a much less expensive electric vehicle. Stay tuned. Tesla hoping it can fix its cash crunch by securing a large new credit line from deutsche bank. Phil lebeau joins us with more. Hi, phil. Hi, kelly this is the first of whats expected to be a very active end of the year for tesla when it comes to borrowing money so it can ease its cash crunch situation. Heres the credit line the company announced. It was announced in an s. E. C. Filing late yesterday. 300 million through deutsche bank. The money will be used for teslas leasing program. The importance here is that it frees up cash that tesla will not have to use for that leasing program. And as a result, it will not have to borrow as much when it does the big Capital Raise in the fourth quarter. Yes, there is a big Capital Raise coming. A couple of weeks ago in an s. E. C. Filing, the company said it would need that money. It ended the Second Quarter in 3. 25 billion in cash. It plans to raise more in the fourth quarter. Theyre be down to 400 million to 500 million if they dont do that. And just last week, elon musk sent an email to tesla employees saying, look, the Third Quarter is critical. Lets show wall street that we can turn a profit and therefore we can be a Successful Company eventually. Because once hay do that Capital Raise in addition to the solar city acquisition, in addition to building the gigafactory and getting production up for the model three, all of that means that tesla after that Capital Raise will have a huge debttoequity ratio and they will be further in debt. Thats the focus. By the way, keown today out with an initial report on tesla. Came out and said, we put 160 price target on that share on shares of tesla. The stock now trading under 200 a share. It will be a very active end of the year for tesla. Wow. Phil, thank you so much. Phil lebeau there. Tesla, by the way, lower about 2 today. And apple cofounder steve w wozniak has been a visible owner of the models. Now hes apparently mulling a switch to the chevy bolt, guys. Pretty interesting stuff. Its definitely interesting. I guess i would argue that wozniak might be in the minority of tesla owners who kind of feel like they just want to own some kind of electric vehicle and theyre going to go for this 37,000 model from chevy as opposed to the highperformance tesla. But, look, its not going to its going to be a crowded field more son that it is right now down the road. Exactly. A lot of competition coming. Yeah, i think that the 37,000 price tag, most tesla owners arent going to necessarily go for that chevy bolt, but the average american, certainly, 37,000 is much more affordable than a tesla. Especially when theres a, i think as Steve Wozniak said in a recent interview, theres no place to put your sunglasses. You think they would have gotten that fix by now. There he is with the thumbs up next to the bolt. And for anybody who was thinking about taking the plunge, it helps to have that endorsement. Lets get back to sue herrera for a cnbc update. Heres whats happening this hour. Hillary clinton campaigning in North Carolina tore into Donald Trumps National Security credentials during a rally at Johnson Smith university. She said trump failed a test by insulting u. S. Generals, while heaping praise on russian president Vladimir Putin. Former secretary of state colin powell is defending his personal email use, while heading up the state department. In a statement to nbc news, he said he was not aware at the time of any requirement for private, unclassified exchanges to be treated as official records. A Carnival Cruise ship returned to port in South Carolina this morning, as the coast guard continues searching the for a new york woman who went overboard. He reportedly fell off the ship yesterday, some 27 miles southwest of the bahamabahamas. And construction workers stood astop the wilshire grand tower in downtown l. A. Today to pose for an historic picture. The four men were on the top of the spire that was added over the weekend, making that building the tallest west of the Mississippi River at 1,99 feet. Oh, my gosh and listen, i see the safety harnesses. I dont see them attached to anything. I dont know. This is one of the best pictures ive seen. I cant even get over this. It makes my palm sweat, actually. Brave guys. Whoo i know. Back to you, kell. Wow it reminds me of that iconic image of the new york guys eating their lunch at the top of the at the skyscrapers. Anything over 200 feet, it kind of doesnt matter how high it is. But what gets you, its just that spire. Its not like theyre on top of a building with a railing. Holy moly. And its small. Yeah. And theres a lot of them. I bet the birds are going to like it. Thank you, sue. They will. Sue herrera, see you later. The race for the white house is getting tighter by the day. A major gaffe by libertarian candidate gary johnson, well, it could send his supporters fleeing for either Hillary Clinton or donald trump, perhaps. Well find out, next. Make healthcare more personal with patientcentric, digital innovations; from selfmonitoring devices that can interpret personal data and enable targeted care, to Cloud Platforms that invite providers to collaborate with the patients they serve. Thats why over 90 of the top 25 Global Pharmaceutical Companies are turning to cognizant. Our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way Clinical Research sites collaborate with pharmaceutical companies, and enhancing Patient Engagement with innovative platforms and solutions. Our populations growing healthcare needs present growing opportunities for our clients to advance the future of medicine with digital, and improve the quality of lives. Wont replace the full value of your totaled new car. The guy says you picked the wrong insurance plan. No, i picked the wrong insurance company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car because youll get the full value back including depreciation. And if you have more than one Liberty Mutual policy, you qualify for a multipolicy discount, saving you money on your car and home coverage. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. Welcome back. What is aleppo . It may sound like an answer on jeopardy, and it may soon be one in the category of president ial candidate bloopers. John harwood joins us from washington with an update on what could be the worst day for those looking for a Viable Third Party candidate this year. Kelly, every candidate fears a blooper of that kind. We all remember the rick perry moment in our cnbc debate a few years ago, when he couldnt remember the name of an agency he promised to eliminate. Gary johnson had one this morning on the set of morning joe about an important subject, the refugee crisis in syria and the civil war in syria, and it was bad enough that it even drew a laugh from Hillary Clinton. Lets look at both of those things. What would you do if you were elected about aleppo . About aleppo . And what is aleppo . Youre kidding . No. Aleppo is in syria. Its the, its the epicenter of the refugee crisis okay, got it. Got it. Okay. Well, with regard to syria, i do think that its a mess. Well, you could look on the map and find aleppo. Now, gary johnson was very human about it. In fact, he said it proves that im human. He went on the view, he said he was thinking about maybe an acronym instead of syria when the question was posed. But the question is, what is that going to do about his ability to get on to that debate stage. Take a look at these polling averages. When you put all of the minor Party Candidates, included on the ballot, these real clear politics averages show Hillary Clinton around 41. Donald trump around 39. Gary johnson at 9. He needs to be at 15 to get into the debate. Jill stein, the green Party Candidate is only at 3. 3. Little hope for her to get on. But the question for gary johnson, and he told me this when i sat down with him a couple of weeks ago, he said, the only shot i have to make a big impact in this race, possibly even win this race, although thats not going to happen either, is if i can get to 15 and get on that debate stage. This may not help him, on the other hand, as weve said before, a lot of people are talking about gary johnson today. That wasnt happening yesterday, so well see. True. John, thank you so much. John harwood in washington. The race for the white house already at a fever pitch, as you can see. And we havent even had a debate yet. Joining us now, roger altman, executive director and founder of evercorp, along with david el pass, senior economic adviser to donald trump. Guys, to become you both. Roger, youre saying this is already over and hillarys got it . Thats my view. I dont see any scenario under which donald trump gets 270 electoral votes. If you stop and think about it, the states that have voted six consecutive times for the democratic nominee, they represent 242 electoral votes. So you would need only 28 more to get to 270. Theyre safely in her pocket, in my view. So she has 20 different ways to get the creptal 28 votes and she happens to be currently leading in virtually every single one of the key swing states. In fact, she is leading in every single one. So, of course, an asteroid can hit the earth and we can all forget where aleppo is, all 330 million americans. But other than that, shes going to win this race. Im sure david will contest that. Its fair to contest it, the elections not over. But i think thats how its going to come out. David, what is mr. Trumps path . Right, i contest that. Its wishful thinking. Theres a lot more time in this election. Its kind of like the football coach at halftime that says, were up by seven points, so weve got it in the bag. The polls are showing that trump has gained a lot. The cnn poll, he gained 11 points and is ahead by two over clinton. And ahead by 20 points for independents. So if we come back to gary johnson, i think trump is able to say, ive got better policies, im going to make the country better, and Hillary Clinton is saying shes going to keep the status quo trumps going to give much more economic growth. Clinton is saying growth is fine as it is. Trump wants to cut taxes. She wants to raise taxes. Trump wants school choice. Hillary clinton used to support school choice. But now shes flipflopped. Shes playing to the special interests and wants the Teachers Union in. So, its just a list of reasons why independents and Many Democrats will want to support trump. But david, it is true that the polls have tightened recently, but the election is not won through national polling. Its won through the electoral map. All Hillary Clinton has to do at this point is win florida, where she is leading, as roger altman pointed out, and shes got the 270 electoral votes that she needs in order to secure the white house. Meanwhile, were seeing traditional republican states like texas now turning purple and even going into play. So, you know what i said the path . What is the electoral path that you see for donald trump in order to win this election . Theres lots of ways to do polling. I think the electoral path is that he presents an appealing message that hes going to have a flood of new investment in the United States that causes growth, that causes more jobs, higher wages. Thats appealing to lots and lots of americans. Get that message out. Theres still two months to do it. And florida should be, in his camp. They have lots of people who want better jobs. So thats going to be thats what i think the message is. Roger . You know, david just talked about trumps plan leading to growth. There have been two recent independent assessments of trumps plan, and only a week ago, citigroup came out with its. And citigroup is not chopped liver. And its plan said that trumps sorry, its assessment said that trumps plan would lead to an economic contraction, reduced investment, reduced trade, and so forth. Which isnt surprising, because trump is calling for a 35 duty on chinese imports, a duty on many mexican imports, deporting 11 million americans, which would reduce the labor force and and so forth. But it wasnt me, it was citigroup saying that his plan would reduce the economy. First we have to get to that november election. Thank you for joining us this afternoon. We need more time. We will. Well bring you guys back. Thank you again for joining us this afternoon. Etsy has been crafting a growth are strategy after a rocky start as a public company. The ceo outlining plans how its going to stay competitive. Stay tuned. Advanced technology is found in the audi a4. With one notable difference. The highly advanced audi a4, with available traffic jam assist. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. This car is traveling over 200 miles per hour. To win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. Welcome back. We have some new developments on just how many employees wells fargo fired over creating unauthorized accounts. Seema mody has more. Seema . Thats right, the nations biggest bank, wells fargo has fired over 180 employees over five years and is paying a massive settlement after workers opened hundreds of debt and credit accounts for customers who had not requested them and were kept in the dark about their existence. Those secret accounts helped workers meet sales goals and increase their compensation. But some regulators arguing the bank put too much pressure on its employees. In some cases, wells forecast create t their own p. I. N. S for the accounts and made up fake email addresses for enroll banking enrollments. Wells says its reimbursing 2. 6 million to customers who incurred fees they dont know about. Zbri did briefly look to see if this was impacting the stock earlier. It didnt seem to be. Does that change, though, as more of the details come out . I dont know. Obviously, kind of a broken sales culture, but maybe the sense that this is a fine, were paying it wi, we fired the peop maybe will spare the stock a little bit more damage. Something to keep an eye on, for sure. The ceo of etsy telling us whats behind his stocks big comeback over the last few months, right after this. Youre making money now, are you investing . Well, ive been doing some research. Let me introduce you to our broker. How much does he charge . I dont know. Okay. Uh, do you get your fees back if youre not happy . dad laughs wow, youre laughing. Thats not the way the world works. Well, the worlds changing. Are you asking enough questions about the way your wealth is managed . Wealth management, at charles schwab. Welcome back. Etsy, the Online Market place connecting buyers and sellers of handmade goods have been public for just over a year now. I sat down with etsys contracticeo, chad dickerson, to talk about their latest quarter. Your last Quarterly Earnings was a bit of a surprise to wall street, because it showed an acceleration in a lot of your business metrics. What accounts for that acceleration . Our results that you saw last quarter are really largely driven by a continued success this our mobile platform. Weve done incredible work over the past year. Everything from signin to search to checkout, as well as continuing to build our international business. A lot of people may not know that Seller Services is such a big part of your business. Its, i think, 55 of the revenues and its growing quite strongly. How big is that piece of the business going to get . The really exciting thing to me is we see many many Seller Services that we can build. Half of our revenues are from only four of these Seller Services. When we talk to our sellers, they constantly tell me they need more help with marketing, inventory tasks, so we see a lot of opportunity there. Handmade by amazon. Now that its been out there for a while, what impact is it having on the business, and what impact do you foresee . Weve seen Many Companies come in and try to compete with etsy. So far we havent seen any effect from those competitors, and were really continuing to focus on building etsy. Etsy buyers and sellers are everywhere in the world, every country in the world. About 30 of our sales are outside the United States. We believe that we can grow that to 50 over time. That, plus continuing to grow our Seller Services business. We feel like we have a lot of gre green field. The dollar has been a headwind and how important is it that the dollar might be strong if the fed raises rates again, how important is that for you . Were really focused, for example, in the uk on building that local marketplace hand now about half of the sales in the uk happen domestically, so over time we think we can continue to build these local marketplaces on etsy that actually form this larger global marketplace, and that that will mitigate currency issues i think across the board. What about legal risks, too, just as we raise a number of the ongoing concerns about the business . Counterfeiting and the counterfeiting lawsuits that are out there. They are out there, but, you know, its hard to factor in for them at this moment it sounds like from your filings. We feel really comfortable with etsys stance on counterfeit goods. We have a very robust system of people and software that are constantly scanning the marketplace. The scoring of your stock price is really interesting because you went public at 16. You traded up to 30 on the first day, and then had trouble maintaining that level. Sold off all the way into last year, and then as i mentioned recently have regained some traction, but youre still below that ipo price. Is that a headwind when it comes to talent, when it comes to attracting people to this company . The stock price will do what it does, but were always planning for the long term. We want to grow the value of the company over the long term, but the reason that people work here is because they really believe in the mission, and they really believe in the longterm nature of the mission, so its really important to them that we stick to the mission and we think over the long term that the stock price will work itself out. And what about profitability, that very basic of Business Issues when it comes to how the stock has been trading. Were continuing to invest. What weve told investors is not to expect nearterm profitability, but the core business mod sell absolutely wellpositioned for longterm profitability, and weve already demonstrated it in our life as a public company. When it comes to etsy and the definition of handmade what, is it, and how important is the concept of every person making goods oneonone now that youve introduced manufacturing . How do you define what etsy actually is . What weve seen over the past 11 years is that etsy, the core of etsy is always about handmade and etsy is much larger than handmade. For example, we have jewelry makers who do digital design of their jewelry and use 3d printers to print not only prototypes but actually the jewelry itself. Were really driving this whole explosion of creativity thats happened from connecting people over the internet and handmade is really always been the spirit of etsy, but its so much bigger than that. Etsy also says the best way to learn about its company is by talking to the sellers, so we did just that. 80 of my business is on etsy. Yeah. Etsy has been an amazing, amazing platform for me. For sellers like annie we want to make sure their creativity and inspiration are really valued so i talk to sellers a lot about their pricing, and we really want sellers on etsy to charge a fair price and a price that recognizes their creativity so im planning to buy one of the wallets from annie. How much is Something Like this go for . That is 48. Would you raise the price of this . Ive considered it. I know that i can raise the price, even the more than a certain item sells, ill raise it 1 here or 1 there because its worth it, and its made here in brooklyn. Where would your business be if it werent for etsy . It would be probably in a sad state. I mean, weve been wholesaling for quite some time but etsy has really taken over for us. Its now 20 , 25 of the business. Its big for us. Its important, and we want to keep gearing more and more towards the retail. Whats your biggest challenge with etsy right now or one thing the company can do to most help you at this point . They are sort of good at getting out of the way even though they set things up to make it very easy. Etsy sell, its phenomenal. Im really able to keep track of whats selling, when it has to ship, what the orders are like this year compared to last year, daytoday. Its really very impressive. And that, by the way, is why etsy would list square as a competitor as much as it would ebay and amazon. Now the Affordable Care act is getting legs affordable as Insurance Companies increase their rates. What happens when theres only one option available to residents who have to sign up . Thats when we come right back. Across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, Creative Business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. Let us help grow your companys tomorrow today at business. Ny. Gov they say the world does not revolve around you. But today, maybe it can. I am helping 1800flowers find the perfect gift out of trillions of combinations. And working with the new York Genome Center to find treatments as personal as dna. And i am helping sesame street make education unique to every child. Hello, my name is watson. Working together, we can outthink anything. Hello, my name is watson. Mapping the oceans. Where we explore. Protecting biodiversity. Everywhere we work. Defeating malaria. Improving energy efficiency. Developing more clean burning natural gas. My job . My job at exxonmobil . Turning algae into biofuels. Reducing Energy Poverty in the developing world. Making cars go further with less. Fueling the global economy. And you thought we just made the gas. Energy lives here. Hthis bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade fed governor daniel turollo inside for every fed go. The state of our economy, a cnbc exclusive tomorrow at 10 00 a. M. Eastern. Major insurers pulling out of Obamacare Exchanges across the country have left one county in arizona with zero options for its residents until last night. Bertha coombs is there with more. Bertha . Reporter you know, kelly, its really been sort of a microcosm of what weve been seeing across the country. Blue cross blue shield of arizona said they would pull out of purnell county because they thought it would help them mitigate their losses next year. It would still be another inshire. Last night they said in order to make sure that people here had at least one option they are going to offer plans for 2017 but at a 50 rate hike. Folks with subsidies shouldnt feel the full impact but for people like kyle and annie beck who run their own business, that price hike may keep that insurance out of reach because already this year they are paying 900 a month. We dont get any subsidies. Its making an extra mortgage payment every month just to have insurance thats not very good. Reporter kelly, you know, nine states next year have just one insurer. Senator john mccain and others are saying if they cant afford their premiums, they should not have to pay a penalty if they opt out of insurance. Its really becoming a very, very difficult situation for a lot of folks. Yeah. Not much of a solution in arizona. At least they will have something. Bertha, thank you. Bertha coombs on site there. What are you guys watching for the market tomorrow . Honestly the bond yields. Havent been able to get any momentum behind the lift. See if it happens finally breaking out. Range. Fed governor dan turullo. That should be interesting. That does it for closing bell. Thank you guys for joining us this afternoon. Fast money begins right now. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys times square im melissa lee. Traders are tim seymour, brian kell and dan nathan and guy adami. Twitter sinking at rumors circle its annual Board Meeting, but if youre hoping for a takeout one analyst says dont hold your breath. Hes here to explain why and anal getting hit after its big iphone 7 launch and suddenly the company is about to get really quiet. Why it has investors so worried and later a top technician has found three stocks that look like they are about to break out, and they all have fat dividends. Well give you the names. First, we start off with a retail wreck. Consumers stock getting hit across the board. Macys falling with the rest of the