Transcripts For CNBC Closing Bell 20161003

Accounts scandal. It is outrageous that eight years a cowboy culture on wall street wrecked our economy we are still seeing powerful bankers playing fast and loose with the law. We will have more on clintons speech coming up and then after the bell a first on cnbc interview with illinois treasurer who announced his state isstanding 30 billion of investment activity with wells for at least a year. On top of what california did last week. Some on wall street have said that republican nominee donald trump would not be good for the market. We have one wall street economist who says trump is right on target when it comes to who is responsible for potential market bubble. Look out ebay because facebook is unveil agnew feature called market place which could spell trouble for other Ecommerce Companies like craigslist. Stock market looking like it is moving from defense to offense. Who better to do that than the baseball official himself. In that analogy i think the offense the sections have been at bat for several weeks now. If you look to mid july the s p 500 has done almost nothing. Within the market if you look at the s p those are the more Aggressive Growth oriented more volatile stocks. Low volatility basket that was go popular. Those are the dividend plays. What is going on below the surface is that semi conducters, transportation stocks, machinery stocks, emerging markets have been out performing in the several weeks. More recently for the transports. On the down side you have utilities. Again today utilities selling off hard even though bond yields have remained very tame. This is leading to the question. Is this the markets way of sniffing out some kind of growth spurt or better cyclical tone to the economy. I think that is the chance it is the case. If you look at nonu. S. Measures of industrial demand they are at close to a twoyear high. Is this also Portfolio Managers rotating into lagging sectors and playing for a Fourth Quarter rally. I think that is the big game for the next couple of months to see if this is economic signal. What about financial snz if you see utilities falling and you are thinking maybe that is a signal that rates will rise because they are sensitive, in theory that would mean financials might be better off, as well. What is going on with financials is essentially investors and banks want to see the actual yield curve gap out. You cant just kind of take it on faith. Too many times banks rallied on advance of good news on Interest Rates. You cant discount what is going on with Deutsche Bank and the idea of stress levels rising. I think this financials are a little bit of an outliar in this dichotomy. Good stuff. Well see you next hour here on the 4 00 hour. Lets get to the exchange for this monday. Joining us today jason at post nine. Sitting next to keith bliss and rick santeli from chicago. We are searching for anything that we think might take the market down or lead it to a breakout and coming up short of ideas at this point. We are hearing that from clients and other investors that are in a wait and see mode. I know we have seen that throughout 2016. It has gotten more pronounced in the last couple of weeks. We have so many things that we are dealing with right now with Prime Minister may coming out and siting brexit timing now evoking article 50. We are just over a month away from that and we are going into a another Third Quarter earnings season which we agree will be lackluster. Too many things for investors to take a look at. It has become complex and beyond that i dont see a catalyst that will shake this market one way or the other. Especially from what you heard from mike santoli if utilities are doing what they are doing because they think Interest Rates will rise that has massive implications. What is the best play if you do believe it . You dont get false positives from cyclicals. Cyclicles are doing quite well and if you look at the Third Quarter it was industrials, technology and financials. Generally speaking that bodes well for the economy. I think partly what the market may be sniffing out is that regardless of who becomes president there is going to be some sort of transition away from Monetary Policy towards fiscal policy. That might look very different depending on who wins. I think it is safe to say that the u. S. Deficit is likely going higher certainly Government Spending will go higher as far as utilities and p. E. Plays it depends if real rates go up because if rates go up because Economic Growth is stronger that might not be so bad. If rates go up because inflation is higher that is a different story. Rick, are you seeing the same trade in the fixed income arena, in other words anticipating growth, more fiscal stimulus down the road . Yes and no. The fiscal stimulus story is an interesting one. The problem is you are talking a minimum of midyear to end of 2017 before any of that actually gets done. They are not going to get sworn in and start working on various fiscal plans. I think in the year now i look for markets to stay hunkered down and things like the election. All in all there is probably more Deutsche Bank surprises out there than there are upside surprises at a time where it is very difficult to amass good returns on anybodys portfolios. I think when it comes to domestic Interest Rates they look as though they want to do more to the upside. I think it will be a very slow process. One thing we can say for sure is we have done so much tire kicking in the 150s that i think it is safe to say for now we will not be going below that level anytime soon. You must like what he just said because you are short bonds and long financials. Those trades sound like two sides of the same coin. It was a tactical trade in late august. It is tactical which means we think it will last another month or two. After that i have a feeling we will revert back to the new normal. I think rick is right that fiscal stimulus is not a pant s you will probably get an inflation scare as we go into the Fourth Quarter and First Quarter of next year. Some of those things might be vexing to Interest Rates but might be positive for the financials. Just let me add you to that conversation. Are you kicking the tires on the financials here . We see people nibbling around the edges but we dont have anybody that i talk to that has conviction that we will get the yield curve spiking higher. As we have been talking about the last five years every time somebody says rates have to go higher and the bond market just beats them to death. Im not sure anybody is willing to take that chance. We want you to hear what jamie dimon had to say about Deutsche Bank on power lunch to talk about detroit but asked about the situation with deutsche. Here is how he responded. There is no reason that Deutsche Bank shouldnt get over its problems. And i should point out remember there are two different really and both created by government which is the legal element which is creating certainty would be good for them and ongoing i call it capital confusion where people dont know where the rules end up so people question it. We warn all these banks to get through because it is better for everybody. Two problems created by government. Rick santelli that sounds like music to your ears. What is fascinating is i totally agree with him. The problem is that is going to take a lot of time. Those looking for, you know, earnings season, bigger profits ahead not only do we have to deal with the broken book of rules of the road but it has to be fixed up, beefed up and then it has to have its magic worked over many quarters. That really is a comment that in my opinion doesnt give me a lot of optimism about a run away upside of the economy. I thought he was going to mention negative Interest Rates. If government is creating some of the problem are they going to have to help solve the problem to get Deutsche Bank out of this that they seem to be in . Of course, it is ironic that the capital call is largely about the same as what the fine was. It is largely government created. We are not absolving anyone from bad behavior. Im sure jamie dimon has a feeling about this. Jp morgan got sued for things that stirps did after the federal government essentially begged them to buy. Im sure there is a certain element where you say am i in some sort of alternative universe here . The thing that is vexing is there is no coordination between various parts of policy. You have a lot of people in government doing things that are not in keeping with one another. If you had some coordination it might go a long way. A lot of left hands and right hands. None of them clap. See you later. Appreciate it. Sales slipping. Susan lee has details. Sales down for americas big three. They did better than expected. A relatively strong month for the auto industries. Lets start with gm, General Motors said sales fell a little more than half a percent in the month. If you exclude fleet sales september edged up. September may have looked quite ugly for ford. Sales falling close to 8 . Ford already guided to the market that they were going to front load sales this year. This is kind of expected. Something else that is rarely seen jeep brand reporting decline in sales. And meantime saw sales of japanese Brands Rising thanks to higher truck demand. Tesla is rallying after Third Quarter deliveries came in ahead of forecast up 70 from the previous quarter. Really helped moving stocks out of the showrooms and analysts looking for annualized sales pace. Still not bad but comparables are hard given last september we saw a blistering pace of 18 million. I remember our jaw all dropped last year at this time. Thank you. Well see you later. You keep looking at your watch. Im getting text messages. Thats an apple watch. You dont look at that for the time. I want to be right here right now. Anything but the time. The time is we have about 48 minutes left in the trading session. The dow was down over 100 points on the open. We are down 70. Not like you to scold me. Hillary clinton calling out bad actors in the Business World. She does lots of scolding as donald trump with renewed scrutiny over tax returns. Watch out e bay. Facebook is launching an e Commerce Service aimed at the heart of what ebay does that is connecting buyers and sellers. We have a report from San Francisco on just how big a threat facebook could be coming up. You are watching cnbc first in Business World wide. If you have medicare parts a and b and want more coverage, guess what . You could apply for a Medicare Supplement Insurance Plan whenever you want. No enrollment window. No waiting to apply. 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Those reports are unconfirmed. Netflix reports earnings in two weeks. We will talk more about this. Wynn resorts and Las Vegas Sands gained ground. Macau revenue climbed second Consecutive Year over year increase. Analysts say the recent opening of new casinos is helping to attract new customers. More breaking news on auto sales. So auto sales in the month of september higher than august coming in ahead of analyst forecast looking for the month 17. 76 million vehicles, sales base very patriotic. That is higher than the august sales number of 17 million but a lot of people and analysts say september was a month of rebates, discounting. Lets see if this pace continues into year end. Back to you. A good sales pace but did they make money . The bigger number 1776, patriotic number. 17 million cars. The height or the depths of the market woes back during financial crisis dropped down to 10 million. Facebook is launching a craigslist type service. Thats right. Its called market place. You open the facebook app on your phone right here and it will be here where the messenger icon used to be. This is a dedicated tab for peer to peer shopping. Market place does have major advantages. Its not charging for listings like ebay does plus you can use messenger to haggle and know more about who you are dealing with. It is not making facebook money but could sell ad space or could introduce businesses. That would let it compete with amazon and walmart. Com. Facebook did try a similar push nearly a decade ago. This is important. That was desktop only. This is only mobile. So it is easier to snap and post. Facebook says that 450 million of the users already visit buy and sell groups each month. This is a different way of presenting products sold. Facebook has been busy. On friday it started testing snap chat like features. It introduced messenger for emerging economies. The social giant is facing scrutiny over video metric with ceo of association of National Advertisers calling it troubling. Back over to you guys. And if google tried to do this with froogal. Not like they made a huge dent. Throwing more pasta at the wall and see what sticks. 40 minutes before closing bell. Dow jones industrial lower by 58 points. S p is lower by 8. So much for fridays rebound. We will go live to frankfurt for a look at why shares are lower on wall street. Hillary clinton calling out bad actors in the Business World including wels fargo as the Trump Foundation served a cease order. 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 cobiella sharing on the news that it is being acquired by its rival bass pro shops. It combines two of the biggest sports retailers in the country. Michelle goes to both all the time. Bass pro shops offer was 65. 5 a share. And represents a 19 premium. Have you been to one . I have never been. I know they are very popular in the midwest and in the south. If you like that stuff it is like disney world. Hillary clinton going after what she calls bad corporate actors. Eamon javers has the story. Hillary clinton on the campaign trail take ag swipe at wells fargo by name over the recent scandal and by implication mylan pharmaceuticals. Hillary clinton offering a sort of broad word of advice for corporate executives. Here is what she had it say. If you scam your customers, exploit your employees, pollute our environment or rip off taxpayers we will find ways to hold you accountable. And no surprise Hillary Clinton also going after donald trump after the New York Times report over the weekend that donald trump took nearly a billion dollars in losses in his tax returns in 1995 and may have not paid federal taxes since then as a result of losses back in the 1990s. Hillary clinton saying trump really just a part of the corrupt system that he is pretending to be out there trying to clean up. Speaking of donald trump the attorney general of new york state issuing a letter made public today ordering the Trump Foundation to cease and desist raising money. He said the Trump Foundation Must Immediately cease soliciting contributions or engaging in fundraising activities in new york because he says the Trump Foundation never got the appropriate license from the state of new york in order to solicit those funds in the first place. More Trump Foundation news. Hasnt the Trump Foundation been around for years . What did it take him so long for . It seems like this surfaced in the middle of the political campaign. A lot of attention to foundations on both sides of the political aisle. Schneiderman pouncing on allegations that have surfaced in recent weeks. Thanks. See you later. Still really late on it. I guess. Youre so funny. New questions surrounding Donald Trumps taxes in the wake of the New York Times report over the weekend. New york times reporting that donald trump used business loss to possibly avoid paying any income taxes for up to 18 years. It was all possible because of a little known feature of the tax code known as net operating loss. At that time it could only be apply today two years of income. Over the years you can expand it and apply it to more than 20 years of income. Their use has exploded. In 1996 taxpayers claimed 50 billion. By 2014 that had approached 200 billion. The idea was to help Companies Ride out economic cycles you can only apply to companies that you own or control. Real Estate Developers like donald trump have found ways to turbo charge the provision if you are a designated real estate professional you can deduct Interest Payments on building loans as well as depreciation so you can report huge paper losses while making a large income. The use is not uncommon among the wealthy but the magnitude of trumps losses are almost unheard of. Accountants i talk to say the biggest one they had seen was 100 million. The biggest question now is how exactly did he generate that loss . Given that mr. Trump said he will not release his taxes we may never know the answer. There is nothing illegal here. You read stories about this and he responds with welcome to the real estate business, that is the way it is in real estate, right . Everything about nols is perfectly legal. Everything that trump did as best we know is perfectly legal and in keeping with tax code. I think the issue raised here is should this be allowed to exist in the tax system . It all comes back to shouldnt we have a more simple tax code . Everything about our tax code is generated for real estate. We give individuals a deduction on mortgage because we believe in homeownership. And accountants do pretty well it. The question that has not been answered that i am dying to get an answer, who mailed this to sue craig . You and me both. Thats the one i want to know. That is the enticing question. That is illegal. Just want to know. Thanks. Thank you, guys. Susan lee is back with a news update. Here is what is happening this hour. Hurricane warnings are in effect for jamaica, haiti and parts of cuba as the region gets ready for the strongest storm in a decade. Hurricane matthew packing winds of up to 140 Miles Per Hour. Matthew is being blamed for two deaths. German chancellor Angela Merkel one of several leaders to celebrate unity day to mark the 26th anniversary of the countrys reunification. City Officials Say lead tainted pipes have been replaced. Crews are expected to make repairs of 1,000 homes this fall. It has been a year since Health Officials warned residents that tap water was unsafe to drink and the navys battleship with quite a welcome. It is tenth to be added to the u. S. Fleet. That is cnbc news update at this hour . Youre a poet and didnt know it. 30 minutes left in the trading session. The dow down 60 points to begin the new quarter. A leading trader will tell us what he is watching into the close coming up. We will get a live report from germany, the latest developments driving Deutsche Bank shares lower again. 27 minutes left with the dow down 57 points. We have the director of Institutional Sales with me here on the floor. You said friday if we close below 2,170 on the s p look out below. Right now its hard to claim victory as of yet. I think it was just bullish bearish short term indicator. That is what we are seeing. We have to worry about a couple of things. Where do we rally from . Are we going to see a sell off prior to that . And we saw ism has been a problem. Retail sales have been a problem and Industrial Production a problem. New orders are good. Thats bullish. We get retail sales next week. Fell off a cliff starting in april. Is that better come next friday . Well wait and see. That could be bullish. One stat i keep hearing is we finished positive year to date for the major averages after the Third Quarter and every time that happens we finish positive for the whole year. Thinking that the market is going to rally into the close this year. If you look flat on year it is 2043. Roughly 5 or so. If that continues was it a good year . Bad year . Indifferent year . We are right around alltime highs. If we can maintain that that would be a tremendous victory. After six years of big gains we will take another gain. Tremendous victory. You have opec that we started to look at versus the fed. Lets see what opec does for the risk on trade. Lets see if the air comes out of that balloon prior to the november meeting. Very good. See you later. Deutsche banks adrs under pressure again today. The latest developments on the crisis gripping germanys largest bank. Reporter adrs under pressure. I think that is fridays optimism on hopes that we can see a short term deal signed here. I think this through is a silver lining. I think this has raised the bar for what will be acceptable for investors when we do get whatever size it comes through even if it wipes out a big chunk of Deutsche Banks reserves here that they put aside for litigation costs. In the meantime there is action going on. Deutsche banks executives have flown to washington. I think the hope here is geography will help facilitate the talks. Here accusations flying thick and fast. The biggest one that this is the United States raging some kind of economic war on germany and it is clear a really big fine here would be politically toxic for Angela Merkel. Get this. Comments from her deputy chancellor this weekend. I dont know whether to laugh or be furious that a bank whos turned speculation into a Business Model complanes a victim of speculation. Zero sympathy for many politicians and a message to Angela Merkel, help this bank at your peril. Many people saying exactly the same. Bottom line, we need clarity on this settlement for many different reasons. Now we wait. Back to you. What is the timeframe on that . The french report that supposedly they were close to a deal. When you look historically how long the negotiations take they can take up to a year. Is there any clarity . Its incredibly difficult to tell. We hear all sorts of rumors that they will do this in a matter of weeks. There were reports to get something this week. Others saying getting it done by the u. S. Election so they are dealing with this administration and not the next one will be tough to achieve. Michelle, at this stage it is anyones guess but i think this both from germany and ecb and probably the fed, too, to get this done as soon as possible. It would certainly remove the uncertainty. Thank you. Thanks, julia. 23 minutes before the closing bell. The Dow Jones Industrial is lower by 52 points. Coming up another blow to wells fargo this time dealt by the treasurer of the state of illinois. Today i am suspending 30 billion in investment activity from wells fargo. And the use of the company as a broker dealer for the purchase of investment. The their illegal actions is down right shameful. He will speak with us first in an interview coming up in the next hour. After the break why he agrees with Donald Trumps assertion that the fed may be responsible for a bubble in the stock market. Talk of the market bubble has been a hot topic for donald trump on the campaign trail. At the first debate mr. Trump blamed janet yellen and the fed for the bubble he is predicting. We are in a bubble right now and the only thing that looks good is the stock market. If you raise Interest Rates a little bit that will come crashing down. We are in a big fat ugly bubble. And we better be awfully careful. We have a fed that is doing political things. This janet yellen of the fed, the fed is doing political by keeping the Interest Rates at this level. According to Morgan Stanley trumps claims might be partly correct. Their Research Found since january of 2008, 60 of gains came on the day the fed announces policy decisions. There have been 700 points of gains in the s p 500 since january of 2008, 422 of those points came on fed announcement day. Its 60 . Who noticed all of this . Rashir sharma from Morgan Stanley. Good to see you. Nice to see you. The fed is the reason. Are you putting cause ality for the reason why we see the market go up so much . It is not just coincidence . I think the effect has gone up dramatically overime. I look at the data going back to 1960. If you look at the 1960s and 1970s the effect the fed policy had on markets was basically negligible. Then it starts to go up gradually and the effect that we have seen since 2008 is unprecedented and the stock market is one manifestation of that. I think it is across asset classes. Bonds, housing, never before have you seen valuation this high on a combined basis. I think the only factor here is fed policy. Isnt this what the fed wanted . They want people to put their money in risk assets. Thats why they lowered the rates. That is where they want people to put their money and they have. I mean, you can argue that is the case. This really sows the seeds for next financial trouble. The next time the fed raises Interest Rates you have a reversal. To be this dependent on stock market or wealth effect is not a wise strategy. I think you answered my next question which is there is one thing to say there is cause ality there, the fed on Interest Rate leads to higher stock market. Do you believe there is a bubble and that donald trump is right if Interest Rates go up a little bit it bursts. It is hard to see what is a bubble and not a bubble. That is a subject of much controversy on wall street all the time. What we do know is valueuations are this high your future returns tend to be quite low. The work that our team has done on future expected returns show that the return should be quite muted over the next five years. How that plays out is very hard to see. Here is what i feel about what is going on out there which is that what the fed did at the height of the crisis was understandable in terms of lowering Interest Rates and even some quantitative easing. The policy of pursuing this deep into an economic recovery i think has been counter productive and something that the fed is fearful of in terms of every time it goes to increase Interest Rates it is fearful of what is going to happen to asset markets and being dependent on asset markets is not a very wise strategy. I know you are not an investment adviser. Where would you put your money if you feel like risk assets are crowded because of fed policy where do you put your money . I think that is a very difficult question. Im an investor myself. I think that as an investor what we are doing is to sort of look for assets where we think the future expected returns will be relatively higher. I think in that regard we are saying over the next five years some of the cheaper assets such as emerging markets are looking better at this stage. Even though there are risks to china in general the returns are higher then. Overall the baseline for returns needs to be lowered just because over the past seven years we have had the strongest recovery for asset prices in history even though this is the weakest economic recovery in post war history. Do you go as far as donald trump the points he was making is that the fed is keeping Interest Rates low to help the white house, the democratic white house. Do you go that far . Do they not have independents . That is what he is suggesting . A political agenda, in other words . I wouldnt go that far. I dont think that the fed thinks that way. I do feel that what is happening to the fed is that they can take the roam a bit too seriously in terms of rather than trying to promote price and financial stability. Janet yellen said she wants to run the fed to help main street rather than wall street. Those statements are a bit counter productive. And in fact if anything by the way, what did she do . She helped wall street . Exactly. Thats the point. If you look at the 5,000 year history of Interest Rates you find that there had been periods of deflation but there has never been a period of such low Interest Rates. Did you say the 5,000 year history of Interest Rates . I said that. I had no idea that they were that old. I think some history does go back that far. Even the history in the 19th century which is a bit more contemporary what you would see is that you never had Interest Rates that low and Interest Rates which were never negative. This is an unusual world we are living. Those Interest Rates are inflating prices. Lets remember usery was frowned upon 5,000 years ago. Good to see you. Thanks. Pretty interesting. 12 minutes before the closing bell Dow Jones Industrial lower. Our next guest gives us his safe bet trade. Dont want to miss that coming up. At bol ten minutes left in the trading session. Michelle spent the last commercial looking up Interest Rates 5,000 years ago. Bank of england put out a graph since 3,000 b. C. They were higher. You can imagine. Google and you will see what we are talking about. Joining us on the floor of the New York Stock Exchange our friend. We said that you have a safe bet. Now, is this Something Like the giants against the vikings tonight . Im going to bore you. Im going to tell viewers the best thing i would do now because we have seen so much back and forth. Buy the dividends. Like everybody else . What is the bond market telling you . There is no growth. I wouldnt go near utilities. If you bought telecomes. Bank stocks are cheap. A little volatility. The winner on the other side should be the banks. Im confused. If you like dividend players they suffer if Interest Rates go up but if you like financials they do well if rates go up. Rates go higher banks get more money. Interest rates we have seen this story before. We raise them in december what happened . Nothing. We only market in a globe that will pay you positive return. Dont worry about the bond markets. You might not get punished. You might get opportunity to buy cheaper. If you are getting a 4 dividend or 5 dividend. What is your speculative play . Energy. Look at what emerging markets have done. You are looking at valueuations that are cheap. Earnings cycle are not yet there. If you have the guts buy low energy or Health Care Still farther up. I think you can make money in the short term. You might see 60 million because of supply coming off. I like ml ps. In Health Care Long term we cannot deny global demographics. You see it constantly. All u. S. I wouldnt mess with international. Deutsche bank was good for them. Thank you very much. Well take a quick break with the dow down 46 points. We have the closing count down. After the bell the illinois treasurer will speak with us first. He is the latest politician who decided to not do business with wells fargo for the next year. Well discuss why after this. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. Closing bell is sponsored by e trade. Dont just see opportunity, seize it. 3 1 2 minutes here as we head towards the close. Somebody is trying to move us out of the way. I dont know what is going on. The dow down 60 points. Bob pisani joining me here for the closing count down. As we begin the Fourth Quarter how various food groups did today. The stock market represented by the dow here down 50 points, down 100 on the open this morning. We have come back here. Wti, crude oil which has been moving higher had 30 gain in the Third Quarter and it continued higher and brent is at 50 right now. The ten year yield which was down appreciatebly in the Third Quarter when there was no rate increase by the fed, today it is moving higher. We are above 1. 6 right now. And volatility which reared up finally in the latter part of the Third Quarter after a very quiet first couple of months today has come back a little bit at 1360 right now. A lot of trends are sort of continueuations of what we saw in the Third Quarter tlmpt have been notable laggards today. We saw banks lag. We saw utilities lag and Real Estate Investor trust also lagging. This has been a trend for a while. You think banks and utilities wouldnt move down together. We talk about this earlier. I think a lot of people feel utilities, not a lot of up side here if rates go up. Banks dont go. I think people want to see the yield curve actually truly see it than say it will happen eventually. I think there is a lot of skepticism there. Mike santoli as he senses the market trying to move away from the defensive stocks where they have been parked for so long. Banks could be argued to be cyclical in a certain sense of the word. Another sector not doing well. Gold topped out around the brexit concerns in june. There you see cold corp on the down side. I want to point out how popular reits were. That trend is noticeable for some biography reits in the retail space on the down side. The Fourth Quarter as you well know is the most popular quarter. Its the one that generally produces the best gains. It is the average since 1980. A lot of hope here. Do we start the guessing game for the jobs number on friday . I think we are at 171. I believe that is the number right now. I think the important thing right now is the jobs number isnt the problem. It is the mixed economic numbers. We saw this today with Construction Spending a bit on the disappointing side. Manufacturing numbers a bit better than people expected. It is choppy outside the jobs number. You cant get a trend. It has become so volatile up and down. Thanks, bob. Dow down 47 points to start the Fourth Quarter this year ringing the closing bell at the big board we have sixtime olympic medalist in the shooting competition and at the nasdaq image sensing systems. The treasurer from the state of illinois coming up on the second hour of closing bell. Always great to have olympians here at the nyse. I Dow Jones Industrial lower by 55. 54. S p lower by 7 points. Coming up tim draper will join us. We will talk politics and the market. He says donald trump and Hillary Clinton are using Silicon Valley as atms. He is tired of it. What is he going to do instead . Joining us to talk markets mike santoli and joined by tom adamberry. Mike, what is the problem today . Is this just hangover from friday . I wouldnt say it is a problem. I think you had a little bit backing up. A little bit slow below the surface 40 of volume was in rising stock. I think it was a sector by sector story. You did pair losses this morning. I think the market does crave an indication that the macro is getting better. I dont know if you read mikes piece. He is sensing this transition in the markets to offensive cyclical stocks away from defensive issues. Do you see that happening . How many times have we anticipated the fed raising rates or yields going up . And then it doesnt happen. Do you see that in the fixed income market . I think it tleeds cyclicals people looking for yield and thinking things are going to get better so a Cyclical Company makes sense. Not something we believe. We think we are stuck in the very slow growth environment that we have. You have too much debt. To some degree you have a fed policy that doesnt exactly at the end say things are getting better. We have a zero or low Interest Rate policy. That must be good. I think there is still concern among investors that if we are this sort of expansionary in our Monetary Policy there must be problems out there. What do you make in todays trading especially when i see Interest Rate sensitive sectors that have done so well really getting hit pretty hard. Is that telling you something . Do you believe that . I am still in the Interest Rates are going lower camp. I know Interest Rates back up a little. I still think it retests the 135 level. You have a day or two phenomenon. I understand what is going on. The thing that struck me and the thing that troubles me the most and i know you had to be outraged is janet yellen talking about if they reach their limit buying treasuries which i didnt realize they had a limit but if the limit is reached accuming the law was changed purchasing other assets. I dont understand how that is not a bigger headline how Rick Santelli doesnt buy pitch forks. He was very angry about this on the air on more than one occasion. Japan has been doing this. God bless them. Knock themselves out. We shouldnt be considering that. Charles darwin has to be looking at this thing from his grave and rolling over because survival of the fittest has been thrown out the door. We all suffer as a cause of that. First of all, this is in response to a question. It wasnt saying please give me the power to buy stocks. This is during her testimony. It is very hypethettal. I think what he is trying to do is to say we could have other tools to employ. She is trying to push against the idea that the fed needs to raise Interest Rates just to build up ammunition to fight a future crisis or future down turn. To me that is the context not her saying we are out there im not trying to overtake the fact that that would be her answer, the fact that it is a consideration that her mind or anybody elses mind is more the issue here. He refused to take negative Interest Rates off the table. If we look at those that are using negative Interest Rates it doesnt seem to work well for them. You think through why it doesnt work well, is you are taking Financial System you have taken several thousand years to create, 5,000 if you want to be specific and you say lets turn that on and make it upside down. It is probably not going to work. As i think about other things you might want to do, why do we think the solution to the problem is to have a central bank to be more intrusive into the Capital Markets . Like a vacuum cleaner. Netflix on the rise chat of possible buy out. Joining us is michael graham. Do you buy these rumors . One thing we noticed was twitter was up today. It is hard to say when these reports start to circulate. I think investors are focussed on subscriber growth forecast as we get through q 3 and q 4. That is probably the most important metric as we get through earnings. Do you buy the talk about going after twitter or netflix in. We did this fast money dating game a couple fridays ago and the question was who should be the suitor for twitter. We had a few answers and my response was i think disney would be a perfect suitor because the night before jim cramer had talked about how he is watching the football game, the eagles game on twitter and it dawned on me, what a better way for them to get their content out there than twitter. Now we are told maybe it is netflix. Same type of idea i guess. I know there are a lot of twitter haters and i get it. If you look at the mechanism to deliver content twitter is right up there with anybody. To guys point about netflix being a much bigger bite. I think it is fundamentally a different calculation. It would get disney. Netflix is direct to consumer over the top content Delivery Service. A tremendous part of the business is locked into cable and paid tv distributors. It upends the current model. Disney said we will play with what we have as we have to as opposed to making one bold bet over the top. It would be a totally different gain. Twitter 17 billion in market cap. The decision to buy netflix would be much, much bigger. If disney isnt a suitor or netflix isnt bought are there other catalyst snz what about the new looped cage . Is that enough to keep subscribers in place . The loop cage release was exciting this weekend. It is part of netflixs overall content strategy. The Company Recently said they would like to get around half of the domestic content to be original programming and they are about a third of the way there. I think the content strategy is very important. The two big things that we are focussed on are subscriber outlook. Q 3 will be bumpy again in terms of subscribers because they are going through a price hike. That should be out of the way by q 4. I think q 4 we should see benefit of International Countries that netflix launched in. 130 countries that will start growing Subscriber Base. As we get through next year that should propel the stock. I get that twitter needs a suitor. They sort of hung the for sale sign out there. Does netflix need a buyer . I dont think so. The company is in great financial shape. I really believe that the Management Team feels that they have a long term vision that they would like to execute on. It involves a different way to look at content, a different way to look at the relationship between con tet and distribution. They feel a close affinity with the Subscriber Base and feel if they can follow the play book and Different Countries they follow i think they have a long run way of predictable growth that i think they will just stay the course and capitalize on. Where do you think the stock can go at this point . Right now it is trading at 102 a share . Do you think you will get more from the stock . You have a buy rating and price target is 115. Thats based on multiple of 2017 earnings. As we get through sort of the end of this year and early next year we will roll it over to 2018. That will give you another leg up in price target. I would say our long term model has fairly conservative assumptions about the International Subscriber growth and if you look at the penetration curves that netflix has achieved in earlier market launches we are assuming a fraction of those penetration gains as we look out over the next few years. Before we go, do you like either of these stocks . Very difficult year but i think there is tremendous volume in netflix. In terms of twitter ten years or so everybody was calling for zuckerburgs head at facebook. They figured it out not to suggest that twitter is as valuable or nearly as valuable. With everybody calling for the heads of the guys in charge at twitter i think it is a minor tweak and that company is off to the races. I do like them both. Very good. Thank you. Well see you later. Love you all. We are thanking everybody here. You can catch guy coming up. Famed investor steps in. Would you rather for the Fourth Quarter . That is coming up at 5 00 p. M. Eastern time on fast money. Despite two major gasps gary johnson may be picking up steam in his president ial bid. He is set to make a new record for candidates. He has drawn some support in Silicon Valley. He will talk about these developments. First, though today i am suspending 30 billion in investment activity from wells fargo. And the use of the company as a brokered dealer for the purchase of investments. Their illegal actions to meet sales targets and compensation incentives is down right shameful. That is the treasurer of the state of illinois today dealing another blow to wells fargo in the wake of its fake account scandal. We will talk to the treasurer about the move coming up. You are watching cnbc, first in Business World wide. 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. Look at wells fargo. Really shocking. One of the nations biggest banks bullying thousands of employees into committing fraud against unsuspecting customers. Secretly opening up millions of accounts for people without their consent even their knowledge. Sticking customers with hidden fees. It is outrageous that eight years after a cowboy culture on wall street. That was president ial candidate Hillary Clinton today. Her comments came on the heels of Illinois State treasurers offering a similar point of view and announcing his state suspending with wells fargo. Mr. Treasurer, good to see you. Thank you for joining us. Specifically, what are you doing over the next when does it start in the next 12 month ss . We are suspending doing investments with wells fargo immediately. Our next step is we will send people in to see if they have been breaking Illinois State law to make sure they are in compliance with unclaimed property statutes. You did exclusively over the course of the year 30 billion in investment activity. We invest as briefly as overnight or as long as five years and turn over and do about a trillion dollars in investment activity over the course of a year. 30 billion with wells fargo . Thats correct. You dont do Due Diligence to make sure they are not breaking laws as the relationship goes on . We discovered is some of the accounts have been inactive for a while. By illinois statute if inactive for five years that money is supposed to be turned over and we find the proper owners. If they are creating new accounts and establishing fees we think they might have been using that to reset the clock and hold on to that money longer. That is why we will send our people in to make sure that they are in compliance with illinois laws. I am trying to get the impact of what this means for wells fargo in terms of revenue. 30 billion worth of business can be transactions. They garner fees off of that, correct . How much do you pay in fees to wells fargo last year . It is sort of like they are the best bid. Its like if you were putting a new roof on your house and you took the best bid you know how much you pay to the roofer but dont know how much they make off of that. In the past when you have done business with them it has been the best bid, what if they are the best bid now, you willing to pay more and cost your taxpayers more money because you are not going to do business with them even though that would have been the best bid . We are put ag moratorium in place of not doing investment activity. Even if you have to pay more money to do those transactions somewhere else . There are lots of Financial Institutions we work with. The market sets the price that we pay. Do you sit california did this late last week, do you sense other states will do the same thing . Im sure other states, other cities will be looking at doing Something Like this. We are following californias on stopping investment activity but the state treasurer in california isnt in charge of unclaimed property. Our next step is sending in our people to look at their books to make sure they are in compliance with illinois law. If they are not we will have real problems. What wells fargo did is inexclusive. To see politician after politician weigh in here and get the pound of flesh their authenticity is so lacking and so loved by voters this feels like politicians are trying to make political gains on the backs of bankers. Im not sure it is going to serve politicians so well in the future. These actions are shameful. They created secret accounts without authorization from the account holders. We think they ought to be accountable. We have an option of where we make investments and where we invest our state taxpayers dollars. We want to make sure they have proper internal controls. You dont consider this grand standing . We are in charge of investing the states money. We want to invest with companies that treat customers well and have proper internal controls in order to make sure we are confident in investments we need to make sure we are working with companies that we can trust. Im asking this question of michelle. Wouldnt be the first time this happened. Would you be surprised if states didnt do this in. He is just said he is going to pay more money for transactions elsewhere. We are not going to pay more money. The market sets the amount we pay. You said wells fargo gave you the best bid and that bid is out of the market, right . We impose a moratorium with them. That is the first step and the second is to send people in to make sure they are in compliance with Illinois State laws. Good to see you. Thank you for joining us today. Thank you very much. You, too, michelle. The treasurer of the state of illinois. You dont get tired of politician after politician trying to i get what you are saying. How could they let it go on and still do business with the bank without there being punitive activity of some kind . Im not justifying anything. Youre damned if you do and damned if you dont. It comes off as grand standing. I had to sit through that whole congressional testimony and they didnt let him answer the question. It was all hypothetical. Yell, yell, yell. Im not done yelling at you yet. Apples and oranges. On we go. Sounds like a mystery potboiler clashing with a scifi tale. Last months explosion may have occurred at the hands of a sab tore. First health care and its cost to Small Businesses has fallen from the radar of the president ial candidates but to the Small Business owners on main street it is still a topic that weighs heavily on the voting decision. Those details are next. Ss new york state, from long island to buffalo, from rochester to the hudson valley, from albanto utica Creative Business incentives, infrastructure i iestment, university ptnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. Leus help grow your companys tomorrow today at business. Ny. Gov we are counting down to president ial election. As the time gets closer Many Americans are still waiting to hear more concrete plans from the nominees on Health Care Reform among other issues. Kate rogers is talking about that with us. Health care reform is one of the biggest concerns for Small Businesses this year. The nfib said it ranked number one with 70 of Small Companies citing cost as their top issue. Some companies had to offer coverage for the first time this year. He is just over the 50 full time worker threshold and says he feels unsure of how much rates will hike next year and what will happen to the law under new administration. Yes or i dont know what to anticipate. I cant plan. I make my plans on a worst case scenario. Others have long offered coverage but are seeing large increases in premiums. As a Small Business owner, as an american that cares about our employees, we want them to have good health care. We want healthy employees so Affordable Care act has good intentions but there is cost and the benefits of the cost. As a Small Business owner we just want a balance. Neither Business Owner seems to think a full repeal which is watt republican nominee donald trump suggested is the solution. Both did like the idea of offering coverage to employees but were more concerned about what Health Insurance under a new administration might look like. Any comment on trumps taxes . I have been doing the series talking to Business Owners all across the country. Many are undecided. They said they acknowledge there are huge loopholes with issues with the current tax code that allowed donald trump to do this. All but one seem today take issue. One said it was a personal affront to himself and every american who pays taxes. One of the businesses he said he was impressed with the fact that donald trump was allowed to do this and the tax code is a huge mess and he respected the fact that he was table to do this. The other two more middle of the line. They all had a lot to say. They are all still making up their minds. We are just about a month out. They havent decided. Everything that these candidates do and say they may not be thinking about Small Businesses as much as Small Business owners would like them to but are listening to what they are saying. Thanks very much. Thank you. See you later. Upcoming election remains top of mind as it could be a wildcard for markets. The next guest is a venture capitalist. He says he is torn about the election. Doesnt like either of the major party candidates. Lits rr bring in tim draper. You dont like either candidates. That makes you one of a big crowd, mr. Draper. So what is the idea that you think they both treat you like atms . There are some positives. I do like the idea of simplifying the taxes, making it more of a flat tax. Its so complex now. Nobody really knows what taxes they are supposed to pay. And i do like some of the things that im hearing from hillary, too. She is very good with workers. She is sensitive to all their needs. Those things are all positive. I dont like the protectionism that is coming from both sides of the aisle now. Its so important we have businesses all over the world and its so important to keep those life lines going. Geographic borders are falling. Governments will have to compete with one another for us, for the entrepreneurs and money and businesses of the world. And the u. S. By protecting itself might just see itself sink. Protectionism didnt work for communist china. It didnt work for russia. It just doesnt work so we need to open all those borders. I would love for them to start thinking about that. I guess if you dont like the protectionist tone from both candidates can you make distinctions about how radical a protectionist each policy might be . Is that the calculation you have which might be less bad on the trade front . There are lots of things. Its not just trade. Its how are they going to deal with the taxes . How are they going to manage the revenue that they get. What are they going to do with it . How are they going to operate the country . How confident is the country going to be because confidence drives a good piece of our economy because it lifts the markets and then people take more risks and our business gets better. There are a lot of things im trying to weigh here but the debate was kind of a low point for america. I think we can do better. I think both candidates can do better and focus more on the issues and not the personalities. Would you vote for gary johnson . Anything is possible right now. Why do you laugh . He is a libertarian. I know everybody makes a big deal that he cant name foreign leaders but he is an isolationist. It fits his political profile. You need to open up. That is a key part of any great country is that they are open. We teased this interview that you were tired of clinton and trump treating Silicon Valley as atms. They just come to you guys for money . They dont represent your voice. Is that how you feel . I feel like they come for fundraisers to california but then they are not having rallies. They are not having fun things. They are not they dont really care about this vote for some reason. And probably because its a foregone conclusion which way california goes. If you are in one of the critical states they come and they rally and they care and they make you care about what they are doing for that state but not california. California is this just like we got this great economy. We have the Silicon Valley so Amazing Things are happening here. They are just thinking thats a great source of money for the country. Its a great source of money for their campaigns and they are not really thinking what does california need to become even more successful. We appreciate it. Thanks very much. You want to talk about the Venture Business go to draper. Vc and submit your business plan. There you go. Sounds like he is running for office now. See you later. Cnbc is partnering with Aspen Institute for cambrage cyber summit coming up. Please go to cnbc. Com cyber summit. Time for a news update. Here is what is happening. Haiti prepares for hurricane matthew. The category 4 storm expected to make landfall there tonight bringing torrential rains and 140 Miles Per Hour winds. Jamaica and parts of cuba are also under a hurricane warning, maybe two feet of rain coming. So far matthew has been blamed for at least two deaths. Public Health Officials putting the 1. 1 billion in federal zika virus funding to work. The cdc says it is stepping up Mosquito Control measures and the rest used for Vaccine Development including a phase one trial. And the u. S. Says it is ending bilateral communications with russia overseeria. State Department Spokesman says this was prompted by continued air strikes even after a cease fire agreement was reached. And you want Martha Stewarts touch on thanksgiving dinner . Meal Delivery Service created by Martha Stewart will offer two do it yourself kits and promises to have all the ingredients you need including the turkey. Martha flipping the bird to america. I knew you would have a line for that. And thats the news update. Back to you. Martha is going to be busy on thanksgiving. Trying to figure out what to do next. What a mess they have here. Voters sent both groups back to drawing board after rejecting a peace deal. This was a major shock to latin america markets. We will talk about the economic fallout next. Debtcould d our. If we nt solveour debt pbl mofor ogramsg like education will shshnk just 8 ye mointest othe de like education will shshnk be thir largest federal ogram. Bad ws for Small Business. The good news . Theres stl time for a solution. K the caides for a plan to secure our future hey ga, what oh heysoe caare ou coamazing ading knlee. Thats gre idea, but why dont just gtothinkowo wwith mart profesons and idthousands of other traders . I know. Your bin told my bra before you told my face. Mmm, blueberry . P into the kwledge of other traderon thinkorswim. Ly at td ameritrade. Lets look at how the day finished on wall street. Minus signs, not big ones. The dow finishing down 54 points. S p down 7 to 2161. Nasdaq down 11 points. In a surprising move the people of columbia voted no to a long negotiated peace accord. After 52 years of Armed Conflict the people of columbia have sent both parties back to the drawing board. I interviewed the president and other latin american leaders a week and a half ago. What if the vote doesnt go your way . If the vote does not go our way we go back to where we were, where we started six years ago, a country at war. But thats not going to happen. Dont worry. Its going to go your way . Yes. Im sure it is. Joining us to discuss the impact of colthe vote. He has a focus on colombia and venezuela. Is this in the brexit category . I think it is in the brexit category. They were expecting about 50 Million People to turn o abou Million People. I know people were upset members of farc would get seats on the senate. They didnt want that representation or validation of the rebels . There are two main points. Lets be straight here. The opposition to this referendum was led by expresident uribe with the stance that these people should not receive immunity and should not have an open avenue into the political sphere in colombia. Both of which were possible under the negotiated deal . Both of which were a fact. So people really were divided on this. It makes sense for that to be a divisive comment. It has been 52 years. You think donald trump is active on twitter. President uribe was so mean on twitter to the current president. Campaigned so hard. This means it is bad for the economy, right . Colombia is a peculiar place because even though we had instability the last ten years we had 5 growth. There is no latin country that can boast that. We would take that. Of course. In a heart beat. We find ourselves in a situation with declining oil prices, Commodity Prices impacted over the last two years and change and the Political Climate with uncertainty. If in developed markets uncertainty are a problem in developing economies uncertainty is a huge problem. Is it just kind of status quo at this point . Where does it go in terms of investment back drop . It is additional because we were as the president just said we were prepared for Something Else and the amount of Foreign Direct Investment that was preparing to enter colombia from north america or europe and uk this was go to add two points to gdp in colombia. Are we talking about military issues again . We are trying Everything Possible for that not to be the case. There is a meeting of the minds right now of the yes camp, the no camp and the farc to see what can be resolved, what can be salvaged. The president has dedicated his term and a half in office to this and the two years remaining this is it. This is what this administration would be focussed on. Thank you for joining us. On the stunning vote in colombia. Middle class flight, job losses, bankruptcy. Not much bad that the city of detroit has not experienced. Motown may be on the move again with new businesses, new residents and a posh new hotel. The detroit renaissance. Meantime, shadowy figures, corporate espionage, a Space Mission derailed. It is not the plot of a hollywood hit. It is part of an investigation into last months space pad explosion. Surprising details next. Approachg medicare eligibility . You may think you can put off checking out your medica options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eigh pcent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement Insurance Plans insured Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement Insurance Plans, they could help pay some of what medicare doesnt, saving you ioutoftmedical cost. Youveearned that taking informed steps along the y really makes a difference later. Thats what it meanso go long™. Call now and request this free decision guide. 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Some crazy new details are emerging that last months space x rocket explosion may have been the result of a sabotage by a rival company. Morgan brennan with more. The Washington Post says a shadow and a white spot in video footage of the roof of a year by building. Ula called in the air force to investigate. Ula telling me that it cooperated with the air forces 45th space wing and Nothing Associated with the accident was found. Space x saying the Accident Investigation Team has an obligation to consider all possible cause and we arent commenting on any specific potential cause until the investigation is complete. So this gets to the heart of the matter. The September Falcon 9 explosion on the launch pad continues to stump investigators. Space x knows there was a breach but ceo saying the obvious possibilities of what caused it have already been ruled out. It brings into focus the fierce competition between the startup and ula between Lockheed Martin and boeing before space x won certification ula had a monopoly on National Security contracts. More have recently been up for grabs. This explosion certainly challenging the plans with analysts and lawmakers questioning its reliability. The Company Still saying with all of this going on that it plans to launch another rocket and could do so as soon as next month. Guys. I dont know. If you cant figure out what the problem is and you look to your rivals at some point. It is rocket science. When the explosion happened a lot of commentary was this is risky business. This is kind of what happens. It is almost built into the process. There was talk about the insurance coverage. You have somebody in there besides the Company Interested in finding out what happened because somebody is on the hook for the cost. There is a whole number of people that want to know what exactly happened. Space x obviously folks that ensure the satellite that got insured along side the rocket. There are contracts with nasa and defense department. They are supposed to be shuttling cargo to the International Space station for nasa and shuttling american astronauts to the i. S. S. You have a number of folks who want to know what happened with the rockets and what it means moving forward. You bet. Thanks. News alert on donald trump. Eamon javers has the story. Donald trump offering extensive defense of his conduct. You remember the New York Times reported over the weekend that they had obtained 1995 tax returns for donald trump which showed he took a loss personally of almost a billion dollars and that may have allowed him to escape paying federal taxes for many years after that. Trump today not necessarily confirming that those documents are accurate. He refers to those as alleged tax documents and says anything he did was legal. Here is a little bit of what donald trump had to say. As a businessman and Real Estate Developer i have legally used the tax laws to my benefit. And to the benefit of my company, my investors and my employees. I mean, honestly, i have brilliantly used those laws. I have often said on the campaign trail that i have a responsibility to pay no more tax than legally required. Making the argument that the tax code is unfair and even though he has been a benefit of the unfair tax code he is the right guy to fix it. Trump also making the comment that he is the one out there on the campaign trail who created jobs. Hillary clinton hasnt created a single job and has been working in government for most of her life. Thanks so much. Fixing tax code, fixing detroit. Not long ago it seemed like a mountain that was too high to climb. But Business Leaders like quicken loans dan gilbert have banded together to revive motown and that dedication apparently starting to bear fruit. The towering plans for the city coming up. These goofy glasses. Yeah. Well, we gotta hand it to fedex. Theyve helped make our ecommerce so sy, and now were getting all kind of new customers. I know. Cayou beeve were getting orders frocanada, ireland. This ones going to new zealand. New zealand . Psst. Hey y guys are gonna scaidiots. Er providing global aess for all business. Fedex. But they demd the best shopping experiees. They may wanthe latest produc and svices, theyryour customers. And by blending physical th dital, cognizant is helping 8 of the 10 largest u. S. Retails meet their demands with more responsive retail mols. Ones tt transcend channels and catitis, anticipate expectations. Eating new ways to engage at every imanable tohpoint. Its a new dayn retail, and together, were building the sto of the future. Digital rks for tail. Les talk about how digital rks for yousiness. Shinola. That is the name of a detroitbased brand best known for its watches, bicycles and leather goods. Now the company is planning to make its mark in the skyline with a Boutique Hotel in downtown detroit. Its set to open in the fall of 2018. Joining us now, tom lawan, this is his first interview since he took the helm in june. Clearly, im behind the times. The last i knew, shinola made shoe polish. All these other things i didnt know about. Thats right. Do you still make shoe polish . We do still make shoe polish, bill, and well be happy to take care of yours for you. My needs. All of those things. Youre part of this consortium trying to revive the fortunes or misfortunes of the city of detroit, arent you . Well, i think its a community effort. I mean, the tremendous leadership of people that youve had on today, dan gilbert, mayor duggin and so many other, roger penske this morning. The leaders so active in revitalizing our city and were starting to see the efforts bear fruit. And we at shinola have happy to be part of that. Whats the most instrumental . How important was it that the bankruptcy proceeding happened so that the city was able to shake off the shackles of a lot of that debt, a lot of those Union Contracts really tough on the city, as well . Well, i think that again, goes back to leadership. You have somebody like mayor duggin, who came into office at a time of bankruptcy and helped lead us out of there from a public standpoint. But it takes the private commitment, as well, and the Business Leaders have been nothing short of outstanding. And our founder, tom cartotis, likes to tell the story how welcoming the community this detroit was when shinola was just a glimmer in his eye a few years ago. And together we have helped build this into a brand that is now showing with our Hotel Project the tremendous amount of elasticity beyond watches and leather and bikes into so many other areas of peoples lives. Were running out of time, but ive got to get to the bottom heline here. This has got to be a multiyear project. Were not talking about the revival suddenly in the city of detroit, are we . No, nothing sudden. One step at a time. Were a small part of that with the business we started and the Hotel Project were doing with dan gilg bert and his team is going to be another step in the direction to provide a worldclass experience for travelers who come to detroit. Were doing with a best in class team with noho hospitality in new york who have some of the finest restaurants in the world and great designers who have designed some of the finest hospitality in the world. So were bringing a firstclass experience to detroit. Much like our revival has been firstclass. Good luck to you. Were really excited about it. Thanks. Tom luwan used to run the detroit lines, now shinola. Next, a vp debate on tap tomorrow. Well tell you what else were focusing on after this. All right. Weve got a lot of time here. A couple minutes to talk about what were looking for tomorrow. The vp debate is tomorrow. What do you watch . The vp debate American League wild card game too. We do. Ill be watching no Economic Data. Youre going to watch the wild card game. Absolutely. The wild card game, we know its going to have consequences. Because some team is going to go on from there. But i do think that we have almost no broad Economic Data tomorrow. So its its a good control in the experiment. See where bond yields go. I think its going to show your default direction of where treasury yields want to go, and inform what the sector work is going to do in the stock market. Good point. I think the biggest question right now, every day i ask, what do you pay for earnings when Interest Rates are this slow or negative. I mean, when theyre negative to the sky and beyond. Theyre not negative here to. Me, its the corporate Interest Rate. Lets say 3 . I think you can justify where were at with earnings. But i think everyone agrees, 2017 earnings forecast are way too high. Tlofr therefore the forward multiple is higher. So a lot of stuff being weighed out there. Thats why i think treasury yields will be the thing that tells us if its okay or not. By the way, alcoa started the parade earnings parade late in the afternoon here. Theyve moved their Earnings Call to the morning now. Their earnings report. How dare they. They have ruined the rhythm. Right before they break into two companies. Exactly. So i dont think were going to be able to find our way. The whole world going to heck here. Do you want to talk about tidying . No. On National Television . I read this lifechanging magic of tidying. Its transformative. Fold ive learned how to fold. This woman has turned into a multimillionaire folding. Folding clothes. It should have been me. Well all be here tomorrow as a matter of fact. We hope you are, as well. That does it for closing bell. Thanks for joining us. Fast money begins right now. See you tomorrow. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys times square, im melissa lee. Traders on the desk, tim seymour, david see born, brian kelly and guy adami. Netflix surging on rumors disney could be acquiring the company. How likely is the tieup and are there other names to consider first. Famed investor mohamed eleri elerian. And dennis ghertiman says there is one thing that will send the dollar surging. First, we start with what could be an ominous message for the markets. Utilities, reits, consumer stables taking it on the chin today, all part of whats been a brutal month forot