Transcripts For CNBC Closing Bell 20161012

Bigger bonuses at his office. But there is a catch. Well tell you what it is. Its a great story. A new battle between apple and google and this time google is beating on the latest back to school shipments and the impact its having on the tech giants and their laptop offerings. First lets have reaction to the feds minutes that were released about an hour ago. There, weve done it. No, lets have bob posani tell us about it. Hes tracking the movement on the floor. Not much different, right . The headlines look pretty normal, the case for rate hike as strengthened. That was the headline. The fed risked credibility by not acting, she said that before, so it all sounds fairly hawkish but the market did not react much, even though most people, 70 or so of traders believe the odds of a rate hike are 70 going into december. Mr. Dudley said i think we can be quite gentle as we go in terms of gradually removing Monetary Policy accommodation. In other words, the glide path is going to be very shallow. Were not going to be acting very aggressively any time soon. The market is tending to believe that, so maybe were pricing at a quarter point and not much after that. At any rate, not much of a movement. What has been happening is the market leadership has sort of stalled out. Thats a problem for the market. Look whats been moving. Pharmaceutical stocks have been strong on strong earning potential. Semiconductors have been really strong. Theyre up 60 points and s p oil and gas has been up 1. 20. We were talking about big pharma yesterday, today not doing much at all. I think the possibility of more regulation under a president Hillary Clinton regime weighing on the markets here, but a lot of these in the markets are down 3 or 4 . Also the semis, more weight on them, but the fact that oil isnt doing much, these stocks were down yesterday. Feds not moving the markets much right now, but election jitters very much are. Back to you. Bob, what do you make of this . Its been a disappointment with early names. We get csx today, then we get the news that oil is a mixed bag. Raising rates with a dollar up, too, seems kind of peculiar. Im a little concerned because the early tone, i dont like what i hear. I dont like erickson, you could say samsung will improve but theyre not as high as we thought. Maybe the Global Industries are having some problems and maybe the banks will be fine and maybe the pharmaceutical companies will be fine as well, well see. But right now i dont like the way the tone is starting. Exactly. Thank you, bob, well see you later. Now to markets and its a possibility of democrats sweeping both chambers of congress as well as the white house. Eamon javers has more on that. Eamon . Coming up from a winningest fire from his partys nominee donald trump who has criticized him for being disloyal and trump says hes going to teach disloyal politicians how to win in the fall. The possibility of democrats taking the house of representatives. Leave aside the senate for a minute, thats a different animal. But in terms of the house of representatives, the math is very tough for democrats despite what the situation looks like now. Remember, 435 seats in the house, you need 218 for a majority. There are 17 seats currently up for tossups. Either party could win. You start out with 177 very solid seats, then you look at five likely seats, then you look down the line at eight lean democratic seats, then, democrats, if you look at that graph again, would need to take all 17 of the tossup seats. They would need to sweep all those and they still dont get to 218. They need to start eating into some of those leaning republican and likely republican districts until you get to 218 seats. The idea here is despite what youre seeing politically this week, which is a tough week for paul ryan and House Republicans, it will be very difficult for democrats to take over the house of representatives. You really need to see the floor fall out of the Republican Party going into november, and thats why paul ryan is saying hes recommitting to campaigning for House Republicans going into the fall and what theyre afraid of is that republicans will be so turned off by the trump campaign, mainstream republicans, establishment republican types will just sit on their hands in november instead of going to the polls. That could present a problem and thats where you could see a change in control. Well see how effective paul ryan is in that campaign, because clearly he wants to maintain the majority there in the house. What hell be doing is campaigning for the Republican Party in conservatism, not donald trump. That goes without saying, right . And thats the distinction paul ryan made. No matter what happens, if paul ryan and the republicans keep control of the house, theyre going to likely lose some substantial number of seats. Theyre going to have a smaller majority in january than they do now, and that majority is going to be further to the right of where it is now because the people who lose among the republicans will be those suburban republicans and the hardcore republican districts will stay republican in january of 2017. So youre going to have paul ryan presiding over a narrower and more conservative majority and then trying to tangle with the possibility of a Hillary Clinton white house. That will be a precarious position for paul ryan as speaker of the house. Eamon, thank you. Eamon jav ers ers for us in washington. Joining us, susan fulton from fbb capital partners, cnbc contributor Steven Acosta is with us, and still not over last nights win. A squeaker there. Where do we go now . Not much of a bounce yesterday. The 10year auction was okay, the fed did nothing to this market. Whats going on there . It should be earnings, earnings, earnings. This is a market of stocks, and as a stockbroker id like you to continue to look at the earnings picture. I dont think this is going to be this is i thought the Third Quarter was going to start showing some sort of improvement. I was obviously wrong about that. But, you know, there probably will be some glimmeasurs of hop and i think some will be in the financials. Friday to monday we start seeing regionals. Im leaning toward the regional banks and i think there is a possibility of growth there. Thats what im focusing on. Same question, susan. Are you guys spooked about corporate profits . Im sorry, i couldnt hear that word. Are you spooked it was sort of a halloween pun about corporate profits . Were very worried about corporate profits. The economy doesnt appear to be picking up any steam, and while other members of my firm are disagreeing, i dont see an Interest Rate hike before 2017 because i dont think you can raising Interest Rates right now is raising Interest Rates geometrically. Youre going zero to a quarter. If you do that and the economy doesnt respond well, what do you do for your second inning . Basically you just have to lay down and be dead. I dont see the feds willing to take that chance. I also dont like banks. I think that banks are moving more and more toward being a utility. And in terms of the financial sector, were looking at rg insurance, were looking at the Chicago Commodities Exchange board. Were looking at other ways to play it. Speaking of insurance, rick, the got to 180 and the auction at 179. It kind of met expectations. What did you think of that today . I thought we had two vanilla type auctions, and that to me speaks volumes. Because if we are at a point where rates were an extreme looking to back away or in a range or revisit a range we had in august, i think the investors would have stepped up much more aggressively than they did. The fact that were two average auctions considering the market has already raised rates, people. Ring that bell, markets are raising rates, and investors think maybe the rates are going to continue to go up. And i find it so fascinating that, listen, its political season so everybody is entitled to an opinion of how it affects the markets. I always thought after being on the trading floor, if its really affecting the markets, we wouldnt be debating it. We would see it in big, bold percentages. Havent seen that. To me the die is already cast. Rates are moving up. The dollar finally looks like it believes rates are moving up, and the fed can either go along or the fed can not go along. In terms of the house of representatives, the only thing downstream thats a reality is the other thing that flows downstream. Trying to follow. Susan, can i go back to the c and e for a second . Why do you like cme, susan . Im sorry. Im getting a lot of feedback. Why do you like cme . Well, because its a transaction business. Its not trying to play the market and make money. It just gets its nickel every time anybody sneezes. That will do it. The toll booth analogy that we like so much. Peter, what about oil . What role is that going to be playing . There was a correlation for a while. I was just looking at the price today. Its down a little bit but not Much Movement there as well. I think oil is going to be in a very narrow trading range. I think what were probably going to see is 47 to maybe 60 at the peak only because above 60, a lot of new oil can come on line and theres still not enough demand to absorb that. So i think youre probably going to see a relatively narrow trading range until the end of the year. There might be a little bit of a bump, but this is where were at. We can bounce up and down a couple dollars a week. You could see 50 as a support level here . I do. I think 47. 50 is a very strong support level. I think there is a lot of the nigerians, the russians, everybody who producing oil, they have a real keen interest at keeping it that level or higher. Rick, how much further do you think rates could go . You talk about them looking like theyre breaking upwards. Its a breakout for sure, but its kind of slow moving. I think theres a good chance we get in the 190s or close to 2 , and we will establish a new range, in my opinion, in that area. I dont think there is enough horsepower to go faster, and i think the reaction of Global Equities while this process is moving on will speak to exactly how high rates go. The response in equities has been squeamishness. I think that will overall raise the rates. Dow at 49, s p is up. Transport down 28. Well talk about those earnings shortly. The nasdaqs in the red. Its low by about two points. Next, well go live to moscow where leader Vladimir Putin is knocking down accusations that his government is behind the Hacking Campaign to influence the election. The ceo of one of the largest Railway Companies in the u. S. And canada gives us what we can expect after that bell. Youre watching cnbc, first in business worldwide. Our special today is the seared ahi tuna, and ill be right back to take your order. Thank you. Thanks. Dont you hate that . When they dont tell you how much something costs . And you have to ask . Right. I do. Maybe thats why i always make sure to. Bring up the costs associated with your services. I know. Hey, im nothing if not predictable. Lemme guess, the salmon . Being transparent about our costs. Its a big deal. And its how edward jones makes sense of investing. 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Jeff joins us now. Hi, jeff. Reporter hi. I think this is the first time president putin has really had to take a direct question as to what involvement the russian government may have had in the u. S. Election process. And specifically i asked him to deal with the allegations that they had been involved in statesponsored theft of government emails and had targeted the democratic party. Lets listen to his response. Translator what we are observing, certain hackers have released certain information about how mrs. Clintons headquarters have been behaving during the campaign. They have been supporting one Party Candidate at the expense of another. This was done in the interests of russia. There is nothing there that is in russias interests. Reporter now, i have to say he didnt exactly give a categorical denial but instead said dont focus on who did this but focus on the information that has been released and also the fact that this is not in russias interests to engage in this kind of statesponsored activity. He also shot back with some comments of his own about the two candidates using russia as a way of trying to generate support for themselves. And he said it was inappropriate and he used the word hysteria to deflect attention away from their own problems. He ramped up effectively by saying at this time he finds it very difficult to have any dialogue whatsoever with a current obama administration. Back to you guys. Is there a sense i dont know how long youve been in moscow there, but is there a sense there, jeff, of how the media is playing this story . You can expect the head of state to deny all of this, but is there a sense anywhere in the media that maybe fthere is a grain of truth to russia and the hacking scandal . To be honest with you, bill, its very difficult to draw that conclusion. The media here is largely, i guess, very much in tune with the government line, and they see most of what is being said in washington as a provocative act, in a way, just to try to criticize and attack moscow. So largely when you hear from media here, they will take president putins line and suggest that this is about the poor candidates, as they would describe them in the u. S. President ial race, trying to stop people looking a little harder into their own backgrounds. Now, i guess there might be some people in the states who might be able to understand that point, but largely here, no one, i think, would take the view that the russian government has engaged in any wrongdoing. But clearly, as we know from the state department and other officials in the United States, they feel pretty confident about pointing the finger in this direction over those hacked emails. Back to you. Jeff, the rhetoric out of washington has become much sharper just in the last couple weeks. Its not just the hacking, its also accusations of war crimes in a leleppo. Im wondering what stance putin had to the broadcasting. Reporter i made my point that its been a very difficult week for donald trump, and clearly Hillary Clinton has pulled ahead in the polls, so how would he feel about working with the next administration led by president Hillary Clinton . He was very careful to say he would be willing to work with whichever candidate was ultimately elected, but i think you get the sense, reading between the lines, that it would be continuity of what weve already seen here on major issues, as you point out, like the claim of war crimes in aleppo committed by the russians, talk of interfering in the election process and the discussion about moving Nuclear Technology closer to nato countrys borders. It seems to me this relationship is still very frosty and one can only hope that if it is president clinton after all that some politic takes hold, because i dont think anyone wants to live in a world where were going back to the cold war of the 70s. It would be good for everybody if these two sides were able to get around the table and Start Talking seriously about how to resolve the crisis in syria and how to deal with some of the issues that remain an area of friction between the two sides. Back to you. All right, indeed. Jeff cutinworth, thank you for staying late tonight, my friend. See you soon. About 30 minutes, 40 minutes left on the trading floor. The dow Holding Steady here. It feels like its waiting for Something Else to happen, but it did happen. The fed minutes came out. Its been eightplus hours since the latest political bomb, as he put it. Yes. There is a sense of what is the next one thats going to land . Hedge funds tighten. Steven cohen say theyre shaking up their bonus structure. And well discuss whether other firms will likely follow suit. Up next, though, not a good sign ahead of the Holiday Shopping season. New data shows computer shipments falling yet again. Were going to talk to an executive of a Research Company behind that report, when we come back. What are you doing . Getting your quarter back. Fountains dont earn interest, david. You know i work at ally. I was being romantic. You know what i find romantic . A robust annual percentage yield thats what i find romantic. This is literally throwing your money away. I think its over there. That way . Yeah, a little further up. What year was that quarter . What year is that one . 98 thats the one. You got it nothing stops us from doing right by our customers. Ally. Do it right. Lets get out of that water. [ thats a good thing, eligible for medicare . Ally. Do it right. But it doesnt cover everything. Only about 80 of your part b medical expenses. The rest is up to you. So consider an aarp Medicare Supplement Insurance Plan, insured by unitedhealthcare Insurance Company. Like all standardized Medicare Supplement Insurance Plans, they could save you in outofpocket medical costs. Call today to request a free decision guide. With these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. Join the millions who have already enrolled in the only Medicare Supplement Insurance Plans endorsed by aarp. And provided by unitedhealthcare Insurance Company, which has over 30 years of experience behind it. With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. 34 minutes left in the trading session with the dow up 34. Ericsson shares are plunging. They reported an additional 94 decline in auto profit and falling sales. Stiff competition from Finlands Nokia and chinas zuway is taking a toll with 5g Technology Still years away. That stock down 20 right now. More fallout from Samsung Galaxy note 7 disaster. That company says it expects quarterly profits to take a 2. 3 billion hit from what analysts estimate could be one of the most expensive product failures in the tech world. Samsung is ditching the Samsung Galaxy note 7 altogether after a massive recall caught fire. Samsung electronics shares down. 65 . A yearonyear decline of about 39 , bringing the worldwide pc shipments to 68 million units. Joining us now to break it all down for us, thats lauren laverde from worldwide pc. Is it starting to pick up pace here . Put this in perspective for us. Sure. Well, its pickup relative to last year when we were down over 10 . As you pointed out, were still down about 4 this quarter. What were looking forward to, however, is getting the flatter growth toward the end of the year and into next year. And if that happens, what is the implication for apple, for google and for the other Major Players, loren . Great question. So the major pc players, the traditional players, the lenovo, hp, dell, those folks have been consolidating shares. Apple has a Branch Number for it. They have a different cycle because of their product positioning, a different os, a different price point, they sell as premium and theyre a product refresh cycle. So there are suspicions that they will refresh their product. If we look at google, google is offering the chrome book and thats still a minority player in the traditional pc space. Of course, if you have the background in tablets and phones, which is quite large, but theyve been gaining fairly steadily lately. I was going to ask you about that. We heard they did better during the back to School Season than the macs did, the apple macs. Is that a new trend, or have the students been discovering the chrome because it strips down, it provides the services they need at a much lower price than the apple mac is priced at these days. That trend has been unfolding primarily in the u. S. , a little bit in canada, in the education segment in particular over the last year and a half or more. For the reasons that you mentioned. Not only is it price, but a lot of the educational institutions find that te chrome platform mu more easy to manage across a large student base. Thats definitely a trend that is now established. It has been challenging for google to take that internationally, and thats thinsomethat theyre working on. Not long ago they announced the availability of the chrome apps that are going to be coming to chrome books, and so that should make those systems more competitive as well. You know, loren, at this point a 4 drop in shipments on the year is practically amazing news. Its been much worse in past years. Is this some kind of trough here, and do you think it could brighten further . Yeah, thats right. The last weve been seeing pc shipments decline were in the fifth year now, so its been a pretty rough market to be in. We do see this as the light at the end of the tunnel, if you will. Weve got new windows 10 operating system, we have fwot a lot of demand for chrome, and weve also got the less sning competition, if you will, from tablets and smartphones. The availability of those products arpd the penetrationing. The incremental gains from one version to the next of a phone or tablet have diminished. What that does, it freeze up computer spending for things that i can personal replacement and theyve really put nice things on the table. Thank you for joining us. Appreciate it so much. Thank you so much. Noble especially since back in the days when ibm was dominant in the pc world, it was apple who fit the educational needs. Thats where they saw their biggest growth rate. Time for an update. The ntsb now calling the downing of a small plane in connecticut an intentional act. Investigators tell nbc news that while in the middle of a flying lesson, the student pilot and the instructor began arguing. Moments later the plane crashed. The fbi is now leading the investigation. Owners of new prius cars may have to take them back to the dealer. Toyota recalling 35,000 of these cars purchased in the last year of a braking malfunction. Disneys star wars the force awakens, is being sued. Betty coletti is hanging up her high heels. The 91yearold known locally as miss betty worked as a clerk, store manager and buyer for the retail chain, and she wore her heels every single day. She was at jc penney for as long as jay skully was at the dodgers. I know, i know. Hes recently retired. Shes doing great. If i ever complain about my high heels again, just remind me of this story. You and i wear flats, but miss betty didnt think it was proper to do so. I love that. 27 minutes heading to the close here with the dow up 20 points. Coming up, the head of csx speaks with us exclusively to discuss earnings due after the bell for the radio giant. Dont go anywhere, more closing bell after this. Every great startup begins with a simple idea. 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. 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Woman . To prevent new education cuts. Man . And keep improving californias schools. Woman vote yes on prop 55 to help our children thrive. The dow is trading lower today, about 30 points. American airlines, Kansas City Southern and avis budget group. Im here on the floor with steven grasso. As we head to the close, what are you watching today . I watched the fed. We didnt get any bang for our buck watching the fed. Still watching crude. Opec to me is the new fed. So if oil holds in, i think the overall market hold in. Even as we learned that, people were going into that trade with the upside. Opec should come in, the market should come in. When is that . I want to say around november 17. We get past the election, we get past the earning season. We still have to get through that meeting and the action with the dollar. Look for those numbers in the s p today for those intraday traders. We have the 100day, right around there, 21. 39. Some levels to watch. Steve, thanks. Bill . Bio tech and humana are taking hits today. Bertha coombs is at the site for that for us today. The nasdaq is down heavily for a second straight day. Interestingly, the issue of pricing coming up. The Health Institute did a study of health prices, and they had seen an increase of 74 on drug prices, and a lot of it on drugs that are older. Then theres the issue of humana, humana today saying cms have medicare and med kab. It will has in a lag that kind of sequences, so its not going to impact their earnings. They could in the future if it didnt reinstate their age. This is one thing people say will impact insurers more so Going Forward as a lot of these plans have gotten so good, the comparisons are getting tougher in terms of winning those 4 or. The dow is positively 21 points. Steve cohen has a new intensity. You wonder, why isnt anybody else doing this rg. Theyre having an impact on the halloween sales economy. More on that story, coming up. 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 welcome back. Look at alcoa. They are down almost 3 . Merrill lynch keeping them from buying. The firm expects the aluminum makers iconic Aerospace Unit to continue to struggle with execution issues over the next three quarters. Meantime, steve cohen is looking to get more out of his traders. Kate kelly is here with the moves behind his traders. Kate . Even complaining about the striking lack of talent in Money Management these days. In order to deal with it, hes gone to college campuses, to social media, hes offered a room in his headquarters and personal parking spots, but now the motherlode, bigger bonuses. Starting next year theyll offer 25 bonuses for Portfolio Managers whose returns beat certain benchmarks. That means if a pa has investment returns in his or her investment book better than set, say, better than the s p, just for arguments sake, theyll get a higher percentage. Maybe as high as 18 or 20 based on what somebody has told me. Top performers get top rewards and people who perform less will be rewarded accordingly. Theres some secret sauce there that were not privy to. Yeah, but this is classic free market capitalism. Youre paid for performance. If you perform well, youll be paid well. What a concept we spent a lot of time on our air talking about the 220 fees which in vess strorz to pay, this is a separate but related matter, which is the individual proefrl managers at the firm, the person who makes Investment Decisions across a single book, what cut of their particular profits do they kept. Thats probably on the high side as well as other hedge if you understand. Now i reached out or whether theyre going this high. This is also a pretty brutal one w indicate. To expect everybody toal ga for force. Youre basically and obviously, at firemen where theyre rig to place a premium ol high. You cant be dealing in inside information. Its absolutely tough. I was speaking to a Harvard Business professor today who talked about in the mutual fund industry, he has picked up of sfrd, very well on those, but then you have another dozen. In hedge fund, the problem is even more pronounced. Youre in and out of positions a lot. I know some Portfolio Managers there, i know there are a lot of diligence done. When youre dealing with to do that well. Not only that, but the alternative. Not necessarily. If theyre better paid than other hedge funds, they dont hit the bench ts mark. Im in line for the parking spot, too, by the way. They seem to be investing in one popular pizza chain. Well tell you which one when we come back. 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. Amazing sleep stays with you all day and all night. With sleep number, you choose the exact firmness and comfort you want and so does your partner for the best sleep ever. Its the final days of the columbus day sale, with the queen c4 mattress set now only 1399. 98. Plus 24month financing. Learn more at sleepnumber. Com the dow up about 33 points. I guess this would be expected after a day like today. The market on close orders pretty much a nonevent a as arthur said. 100 on the sell side. So probably not much impact there. Cofounder of Financial Research and Due Diligence firm geo investing. Youre a short seller. Yes. Okay. You want to tell us what you think is too expensive right now, and we tease that there is a pizza firm out there that youre shorting right now. Which one is it . Dominos pizza. Were short. Weve been short for some time. We feel like the debt they have, over 2 billion, low yield, looming headwinds with wage increases, oil, cheese. This is a problem theyre sure to have, especially with this ratio. Dont we have a cheese glut . Youve got all commodities at an alltime low right now. How long is that going to last for them . Everything is going their direction for them to be where they are. They borrowed this money at a low Interest Rate to buy back shares at a high 30s price ratio. Im just not a fan of that. I think when youre short valuation plays and you have your portfolio full of that, youre in big trouble. There might be people hearing your complaint about dominos and saying doesnt that involve the whole market . It does. But not the same down plays which is what we focused on. So shouldnt they be worried about stocks broadly speaking, or dont you get into those kind of calls . Were definitely not correlated with the market. All these funds are not giving returns for the fees theyre charging because they are correlated. We hyperfocus on stocks. Well go into two or three Due Diligence. Were not happy until we have time surveillance up, until were running drones. Do you have to be more patient in the aggregate because of these low Interest Rates . Does it keep a stock higher than it would have been otherwise . I think thats what has happened here on our market. If youre not focusing on the n inarguable, how do you argue fraud. Thats what these funds are having a hard time with. Do you also specialize in china . We do. Weve had a dozen firms dlisted in china. We continue to do that. Weve had Great Success there. My presentation in june on techro, techro is down 90 and thats largely due to the defense and Ground Surveillance that we did. Look, we still have investigators on the ground, and Due Diligence is a very dangerous thing. Its not legal. There is no public land in china to do Due Diligence on. I really cant mention the names. Im happy to come skbak back an that, though. Well take a break with the dow up 23 points after those fed minutes. And after the bell, were going to hit those earnings which are coming down the rails from cxs. Well have reaction and well break down the numbers with ceo michael ward. Keep that here. Thats straight ahead. Youre watching cnbc, first in business worldwide. 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. Its inside 3 minutes as we head toward the close with the dow at 23 points. Im joined here on the floor for the closing countdown. A couple markets to keep an eye on based on events we were watching. One, the fed minutes came out at 2 00 and the dollar, which has been strong recently. All our strength is a big issue. Its at the highest level going back to june or so, along with the 10 isyeyear, which im su youll bring up. Were at 97, 95, almost 98 right now. The 10year, we had that auction today. It hit 180 and the yield was 179. Remember, we were at 155 or so just a couple weeks ago. 20 basis points. Thats a lot for the 10year. And even the 2year on the shortened of the curve has been up. Maybe not 20 but 14 or 15 basis points. The point being the ucurve has not steepened at all. Its gone higher across the board. The dow not much bounds today. Yesterday for various reasons but today not much of a move there. The dow 22 points even with the price of oil coming down a bit. Still at 54 a barrel. We had a bounce back, but a tepid bounce back. Not so much that there was buyer enthusiasm, there was more selling pressure yesterday. Still sideways today is a victory compared to what happened yesterday. Earnings after the bell tonight. Were still at preliminary earnings stage right now. Csx, still very sensitive in the transportation sector. I know were still very anxious for Bank Earnings on friday. Some of the warnings have not been very positive here. No. Weve seen ericsson. Samsung is a particular one, but when you combine that with honeywell and alcoa, it hasnt started off very well. I want to see more banks regional focus. The good news is rates are up a little bit. I want to see about the loan growth. Its not just Interest Rates, things like that. We did see pharmaceutical sales today. All right, bob. Thank you. A gain of just 20 points on the dow, closing out a pretty Bright Trading sector. Stay tuned for those from csx and an interview with michael ward coming up on the second hour of the closing bell. See you tomorrow, kell. Thank you, bill. Welcome to the closing bell. The nasdaq was up about 18 points on the bell here. 18,146 is the number. S p 2139, nasdaq composite, 5,239. Meanwhile, csx trading lower ahead of its earnings which are due this afternoon. Well bring you those numbers as soon as they do cross and speak with the ceo exclusively. Its not just mylan hiking prices as prices of all drugs climb. They try to save you money but may cost you more in the long run. Cnc contributor stephanie lee. We welcome fast money trader dan nathan of risk reversal as well. Good to have everybody here, mike. We just kind of drifted today. We did. All the markets stabilized. Currency markets, oil, treasury has calmed down a little bit, and stocks. A little bit of a soft close after a rally about the fed minutes. This market is still in this window in october where people suspect we could be in for more ch choppiness. I dont feel like people thought it was too overdone on the downside and maybe we need a shakeout as we go higher. Were not too far duown on levels, and thats why i think its a little tentative ahead of earnings. What about you, steph . I totally agree with that in terms of being tentative ahead of earnings, and we have nothing but negative announcements this week. We have to get through that. But i think the last couple days have been very telling in that earnings are going to be pretty uneven. These were Big Companies over in p pg e ricsson and lumina. I think we have to get through the negativity and get to better earnings. I think well see it on friday. Some of the banks, i dont expect great numbers but i dont expect bad numbers. Well get momentum back in the marketplace. I think the overriding thing will be earnings and well put higher rates and Higher Oil Prices and higher dollar on hold for the time being. Dan, how about you . Are you focusing on alexa . Those guys make really great points about earning season, but when you think about whats going on, the s p is 2 from an alltime high, nasdaq 2 . They make almost a third of the nasdaqs market cap. Were going to get to some of the better earnings. Those five names are likely to have the better earnings, but theyre masking poor perform apps. I think that pretty narrow and then youre going to have those five names outshadow a lot of that, but that doesnt speak to a real broad healthy earnings picture, in my opinion. So to me, those names when we get to them pose more of a risk to me because it shows the upper has no close. Morgan brennan has the numbers. Morgan . Were still going to the numbers but we have a beat on the bottom line of a 48 cents gap per share versus the 45 cents that analysts had been looking for. Operating ratio, which is an important metric to watch with the railroads coming in at 69. 0 , so 69 even versus the estimates of 69. 7 . So thats better than expected. 8 decline in volumes. That was about in line with expectations and coal volumes down 21 . Well keep bringing you these numbers. I will also note that revenues also beat. Taking a look at 2. 71 billion. Shares of csx are up about 1 and a half percent. Back to you. Theres a glimmeasur of good news. What do you think . I think rails has been a favorite of all to own, so its very encouraging. I look at the numbers and theyre pretty much in line. We were at a conference about a month ago, so they kind of gave us some direction there. Volumes, no worse. Operating ratio this company pz has a lot of room to operate. Think about operating legend if you can get volumes to recover and earnings to recover. The stock has come back halfway back from 35 to 22, so i think they had given it more of a positive report. Like you said, they had this presentation from just last month, or what they didnt expect and theyve done twice as much. How in the world are they going to do that and how is this Company Growing fundamentally . Very good question. If you cant grow volumes, you cant grow revenues, how are you going to make earnings . Youre going to cut costs. These guys were a little behind their competitors, which is i swear to like them just baurz no opportunity p. If they can chug along and control. And well have to wal. More fallout from samsung from its galaxy note 7. Samsung slashing its prices foed as a result of these issues. Diedre has more on first now. Diedre . Thats right, kelly. Just a few days ago. This was in the midst of the recall and confusion about the samsung that involved a plane. They did not take into account this fiasco. Earlier today they had the. Guys, that is far from the only misstep. It actually suggested that some of the explosions were faked reasonable doubt and samsung grew it. We tried to contact them a number of times with no response. They dont even know whats happening. For outsiders, its pretending to look at outside management at the top of the company, perhaps to which could cost more in brand and reputation damage. If we see stud. On the bright side, though, guys, perhaps that is samsung h has. Keep that on top of the top vendor all year. Yeah, you cant take any of that for granted when it comes to that market position. Thank you, diedre. Dan, how much of an education blow do you think this one is . Its a great phone. They probably have some pr issue in how theyre dealing with it. I dont think this is a polling issue of the iphone 7s. Apple up 30 from its 15week load. Its gained 16 new customers since they released this phone. They probably issues there is going to be another big seasonal dropoff. You could see their q. People were waiting to see what that next win looks like. I would be shocked to see it over 1 is 25. You alluded to the stocks performance. Its a 7day win streak i think apple has been on here. The only thing i think naming the dow yesterday, it was even in the positive, mike. Its definitely a streaky stock. It tends to kind of get in these runs when people had too low expectations for the 7. Even barring samsungs issues, it was due to have a little bit of a comeback many i think people think that apple really ree reeps. You could actually see a 10 to 15 cents earnings for apple. Filled. Also, i just think its all about positioning. Ly. It is a hunl piece of the beshlg ts mark, its just huge. I could see everyone to just really start to snowball just to get market weight or a little bit over weight. So its probably decent news for the corner. One more question, dan. What about this googlephone here. If this Voice Technology in the googly line of. I think this is for the an dr l droul. I think apple will be able to take a lot more of the people who want that fabric sort of phone. I agree, i think mike said it. If youre an android guy, youre an android guy. And the idea that because that Samsung Phone is not on the mark market. Ill tell you one thing. To me i just dont see people trading down for the pixel. Dan, thanks for joining me here to kick being. Equity strategist scott win amazon is joining the ranks of spotify and pandora. The new internet giant relaxing it. Medical copay passes. Details on that are coming up cnbc first in business worldwide. Welcome back. Shares of pandora were down nearly 3 today. There are news that amazon is officially launching its Music Service to directly compete with pandora and others like apple music and spotify. While other Major Players charge 9. 99, i think, per month, amazon will be Offering Service to 7. 99 for prime members and just 3. 99 for owners of the echo device. As so many enter the music streaming wars, can they all survive . Lets ask paul. How significant of a launch do you think this is . Its very big. Ive been using it all morning andi i have to say this amazon unlimited is better than spotify, its better than apple music, its better than any streaming music out there. What makes it better . Its just very easy to use. Its very clean, easy to explore and they have pretty much everything. But spotify is different, isnt it . Isnt part of the reason it became popular is people could create curated lists. It doesnt sound like amazon will necessarily offer that. It depend how you use it. If its only through the echo and you never see it on the screen, yes, its going to be a different experience. This is basically pretty much the same thing. Its a huge catalog, playlist, whatever you want. On the catalog commentary you just made, do they have the scale and would they need to buy someone, and do you think they could Going Forward, or are they just going to do this . They nailed it. Theyve got the entire catalog. Its pound for pound competitive. There is no reason you need to go to spotify if youre on amazon music unlimited. They nailed it. The only reason to acquire anyone would be to acquire users. How is this business going to shake out, paul . Are we going to have multiple players . There is enough kind of listening hours times people to go around for everybody and pricing gets pressured, or is it going to have to rationalize . Theres enough to go around but only for a couple giant elephants, really. I think youll have maybe four or five gigantic players in this space and they can all support this. Anyone that doesnt have about a billion dollars to spend onramping this streaming service up, i think, will die, unfortunately. Its that brutal. Im just thinking about what googles sort of foothold is . Are they a significant player in streaming music at all . Yes. They are actually the biggest with youtube. Youtube music is the biggest streaming music platform out there. Say what you will about it, its the biggest. Theres another service like amazon unlimited called google play musical access and its a similar service. So google is definitely in this game. Where does this leave you two, by the way, over time . Lets argue that 10 of people go to alexa, turn on this Music Service. Are those the same kind of people that would have been looking on youtube for video or music in the past . Were finding the people who use youtube music are generally the younger set. These people are not going to pay 9. 99, 7. 99, theyre not going to buy an echo. Maybe when they get older, but at that point it will be something different. There are different audiences. Things are segmenting. Pandora likes to remind everybody its in the radio business, advertising support a little bit more than it is in the pure streaming business. Obviously there is a class of advertisers that actually want access to people through these Music Services, too, so its not just what the consumers want. Do you think there is going to remain a place for that model . Oh, yeah. So radio is huge. Pandora has figured out so much and they have 70 million active user users, 80 million, maybe, the last time i checked. Theyre trying to build a full stack Music Service. They want ondemand streaming, they want radio, they want premium, they want ticketing. So get drid fready for pandora. These guys are coming in strong. Just give them a little bit of time. Tom reski nornoff there, dig music founder. As the gop splinters, democrats are gaining momentum in congressional races. What a democratic majority would mean for the markets is coming up. But first, chief executive michael ward joins us next to discuss the results and give us his take on both trump and clintons plans for the coal industry 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 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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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. Pennsylvania is one of the key battleground states in this election and its a state divided thanks to its coal mining industry. Tessa brewer is in pennsylvania with more on this split. Tessa . The emerald mine behind me has been shut down now for nearly a year, and almost 300 workers laid off. They dont claim automation or the growth of natural gas. In fact, they blame barack obama and his wouldbe successor Hillary Clinton. She has embraced the president s clean energy plan, and she talked on the campaign trail very clearly about putting coal miners out of business. Hillary clinton is saying, i dont want to leave coal workers behind. Im going to put 30 billion toward retraining them and moving them to new jobs in clean energy industries. Do you buy that . No, i dont. Why not . I dont buy that. Youre talking political bull crap again. But youre a democrat. I know im a democrat. But she is a liar. Im a democrat but im not voting for Hillary Clinton. Why . Because she came right out and said shes going to shut us down. Trump said hes going to come and help the coal miners. The majority of pennsylvanians voted for barack obama in 2008, but obama lost theirs and other votes in 2012. You can see he became more conservative. Hillary clinton said she will get urban voters in philadelphia and pittsburgh, and those voters will help heroine the states 20 electoral votes. But in this county where the Unemployment Rate is 7. 6 , Hillary Clinton is not persuading coal miners, kelly. Tessa, it was so interesting to hear these democrats saying there was no way they would vote for hillary on this. Was that a theme that kept coming up when you spoke to people . I asked one of the coal miners you just saw there, i said, do nif yoany of your frie any of the coal miners you know of plan to vote for Hillary Clinton . Nope. Nope. Even the state representative, who is a democrat, said you should vote for whoever you want to in this election. Interesting that coal as an industry has been falling for decades, but they seem to place the blame in a very immediate term, this president and maybe the next one. They dont want to look ahead and say what else can we have this economy be in this area . In fact, at the Career Center here, theyre saying a lot of the unemployed coal miners, they come in and theyre getting help about job retraining, electrician, plumbing, clean energy, but a lot of those jobs simply dont pay what coal miners were used to earning. Theyre used to earning somewhere in the neighborhood of 110,000 a year if you factor in overtime and holiday pay and things like that. And around here, if you get 15 an hour, hey, thats a great job. And the coal miners simply just cant accept that. Contessa, thanks for joining us. Well see how it plays out. Everything, it seems, is up for grabs. Time now for an update with sue herrera. Hi, sue. Heres whats happening this hour. Murder charges have been filed. John felix is accused of shooting jose vega and Leslie Zerbeny while they were responding to a family disturbance call over the weekend. Felix sk charnis being charged counts of murder. Hell be arraigned tomorrow. Super court judge rejected the comedians latest appeal to drop the charges against him. Cosbys lawyers argued his Due Process Rights have been violated. Heres another reason to hold off on salt. Keeping sodium intake low will prolong life. The study tracked 23 people for 30 years and found that the rate of death rose right along with salt intake. This is one lucky leopard. Rescuers in india were able to pull that wildcat from a 20foot well. An operation he seems none too pleased about. And it took several hours to accomplish. But they did get him out, as you can see. And now hes in a cage, but its better than the well. Thats the cnbc news update. They did release him into the wild. I have a similar approach with buddy half the time because he just wants to bite and tear you apart. Geez, you know. Im just trying to help you. Harness them in, grab them by the leash. The salt story im disturbed about. Im not giving it up. You dont have to give it up. Moderation. It tastes better on everything. French fries, you name t. Thats the same thing dominic said. Thank you. Great minds. Soaring drug prices have consumers outraged and it could be copay assistance programs from drug manufacturers thats helping to prop them up. Up next the director of the Memorial Sloan Kettering Center and his plan to fix copays. Stay with us. Yeah. Ham and cheese. Cops and robbers. Yeah. Nachos and karate. Ahh. Not that one so much. The rest were really good. Socks and shoes. Ok, ricky. 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Lower blood pressure, more energy, higher productivity and better concentration. Voiceover and for a limited time, get Free Shipping and remember, every inmovement desk comes with a 30day moneyback guarantee, so you can try it riskfree voiceover call or visit inmovement. Com and use promo code freeship. Thats inmovement. Com. Welcome back. Csx just out with its earnings. Joining me now in an exclusive interview is chairman and ceo michael ward. Welcome, michael. Thank you, kelly, good afternoon. What accounted for your ability to Beat Estimates by a larger margin than weve seen lately . Its a tough economy out there with the strength of the dollar, the Commodity Prices where they are and the fact that Industry Price are down. Our safety for communities, productivity, we had great productivity numbers, the service were providing to customers and the pricing for the value of that service. This quarter we had 112 million of productivity, and through three quarters weve had 240 million worth which is well in excess of any pace weve had in the past. I was looking at that chart from your recent presentation. Its about double the pace youve had in recent years. So can you give us an anecdotal example of how thats happening . Weve obviously restructured some of the coal fields. We had to close down some operations, unfortunately, especially in the coal area. We have a number of our dedicated employees who are furloughed. Were running longer trains, were consolidating trains, and were turning over every stone everywhere where we can find possible savings. Ip goim going to come back that in a second but i want to ask you about hurricane matthew. How did it impact your roots . If you look at new jersey and north carolina, about a third of those models were impacted by hurricane matthew. We have very dedicated employees at csx who realize how important it is to get the Transportation Services back for our customers and our communities, so by monday we had florida in operation, georgia on tuesday, and by the end of today, we will have limited service on equivalent of i95. It will be limited because the power is out in much of that territory and we have to put generators in to protect the public at crossings. We think that well have the rest of the carolinas back within about two weeks, but its hard to judge because its still rising, as you know. But kelly, i would like to do a shoutout to our employees. They are so dedicated. They get out there, they put their needs aside and think about the communities and customers, and i was so inspired by that i donated personally 1 million to our csx Employee Disaster Relief Fund which provides money to our employees who have had their own Property Damage or other needs. Michael, its stephanie link. I thought you did a great job in terms of cost nz your quarter, and i was pretty impressed on the volume side, too. Its just Getting Better slowly. A lot of that is because coal volumes have actually gotten a little bit better, but theyre still down 20 . When do you think that will see material improvement, or does this just kind of drag on for a couple of years . Stephanie, thats a good point. Youre correct that the volume year over year is less so than in the first half when it was in the mid30s. Part of that is were lapping the decline in 2013. The run rates of absolute tonnages are about the same in the Third Quarter as they were in the second. But we think there is continued decline that well see in the coming quarters, but to a much lesser extent than weve seen. As you know, over the last five years weve gone from 3. 7 billion of coal revenue and well be at about 1. 7 this year, so weve lost about half our coal business. Before we let you go, politics, the election less than a month away. Who is best for your business . Mr. Trump has obviously voiced support for coal and a return of the clean power plant, which we support. Secretary clinton, i think, is less sanguine on coal, so we really think it should be a balanced Energy Position in the United States with nuclear gas and coal all playing a vital role and we think coal should be better. Is that a soft endorsement for mr. Trump there . We certainly like his policy on coal. All right, michael. Thanks for joining us. Michael ward is the chairman and c, oer ceo of csx. A Conference Call is tomorrow morning. People facing raises on drugs. Rach seel is here and tracking issue. What have you found . High drug prices are increasingly in the public eye. Lets talk about what is copay assistance or copay coupons. This is something a lot of Drug Companies do to help patients when they go to the pharmacy to cover the out of pocket costs or copay associated with their medicine. We saw this with Mylans Epipen as they faced a lot of scrutiny over that. They offered 300 to help people pay for their epipens at the pharmacy. But many say it shows how high the drug actually is coming back to you in the form of higher rebates. Pharma says theyre facing higher cost sharing putting their therapy at risk. Basically saying theyre helping people afford the drugs they need with this program. But if you check out comments made by Elijah Cummings at the hearings recently, hear what they had to say. They say, oh, we have an assistance program, were going to help some people. The next thing you know, they then use that to justify not bringing the prices down. Do you understand that . Hearing about this with the mylans of the world, but its not just them if you look at humira and others, they all have drug assistance programs. This is something that Elizabeth Warren focused on back in april in a hearing focusing on valuable ya valiant. Listen to this. These programs are legal because medicare and medicaid understand that the programs are scams to hide the true cost of the products from the consumers and drive up the cost for all of the taxpayers. Right now patient assistant programs and copay programs are the only available lifeline for some patients. But they are not a real solution. I think this is a really important thing to focus on, because basically every drug company does this. You can see when Elizabeth Warren starts to focus on Something Like this, it may be an importantly growing area for congress. Stay with us, meg. Also joining us now is the coauthor of this study. Dr. Peter balk from memorial Sloan Kettering cancer center. How long has this been going on . Is it finally reaching a Tipping Point that we can do something about it . Theyve been around for a long time, but the rising copays and coinsurance that patients are being asked to pay has prompted these Companies Launching these programs to mask their high prices. They act like its a helping hand but theyre actually bridging patients to much higher prices, three and four times what europeans pay for the same product, and it is a way of covering up the individual financial hurt for patients because its only patients who, when they have sort of an uprising or protest, that companies respond. Thats what we saw with the epipen. The company could have just reduced the price by 50 . Instead they said, oh, well give you a coupon for 50 , basically until insurance kicks in. And Companies Often say that was the best way to help patients afford their drugs rather than just lowering the price. Is that true . No. No. You can lower your price overnight so thats actually faster than delivering copay coupons on the internet and driving up traffic. Tha thats just not krecorrect. Why dont the Insurance Companies have some sort of the responsibility here . It turns out that the copay transaction is happening at the pharmacy counter and the Insurance Company cant see it. The pharmacist brings in a coupon, a 20 bill, and the insurance thinks theyre paying out of their own pocket. Thats what the game is. Everyone has an outofpocket maximum, and once they get enough coupons collected, the insurance pays the full price. How do you fix this problem . There are a lot of different parts here . How do you fix it. In medical school, the first thing they teach you is dont treat the symptoms of the disease. Manage the symptoms but treat the disease. Copay coupons are sort of like turning up your car radio when your engine makes noise, right . We need to fix the underlying pricing structure and right now we have drugs that cost way more than they should for what theyre worth, and we have drugs double, triple, five times the price without any change. Thats the underlying problem. In the meantime we just need to wrangle these copay cards which are helping patients today kind of get over this broken system problem. So we need to keep track of them. We need to let insurers see them. We need to make sure that state Medicaid Programs get the benefits of the discounts the Drug Companies are getting. Our system has been been availing themselves of the lowest price in the market. A discount for mylan is a discount, even though its a discount. Pay more for drugs that work very well, not paying as much for drugs that dont work as well. How do you get into a system like that . Does the whole system have to go in and agree to change . They make them very mad. It makes the drug industry very mad when you say a drug is worth a quarter what they say its worth. Data can cause a lot of anger. The part about getting the data, how well the drug works, kind of the fda prorsz. But we need the insurance industry, actually, alongside. If were paying what the drug is worth, were then not going to layer unimbursible expenses. Thank you for joining us. Now, wall street meanwhile is worried about that upcoming election. Not so much about who wins the white house, but a new concern is a potential shift in power and congress. Well look at whats at stake there next. And a wave of creepy clowns has people on edge but halloween retailers arent cowering in fear. They are seeing an increase in sales. Well tell you why ahead. They may want the latest products and services, but they demand the best shopping experiences. Theyre your customers. And by blending physical with digital, cognizant is helping 8 of the 10 largest u. S. Retailers meet their demands with more responsive retail models. Ones that transcend channels and locations, anticipate expectations. Creating new ways to engage at every imaginable touchpoint. Its a new day in retail, and together, were building the store of the future. Digital works for retail. Lets talk about how digital works for your business. Hillary clinton is leading gop donald trump by nearly 7 points in the white house, but it has major markets concerned, a list between paul ryan and the house of representatives. Just what that could mean for markets in the economy. Lets bring in jimmy from the american prize institute. Jimmy . How possible do you think a sweep is . If you just look at betting markets, there is a greater chance of democrats taking the house than donald trump winning. So and there is a favorable chance of them taking the senate. If youre worried about Political Risk in 2017 and 2018, i think you need to take this into account. You see that as the market seems to view it, az potential source of Political Risk to kind of have government all in one partys hands. I guess i wonder, though, just sort of tactically on the way to election day, weve seen the pendulum swing where the race seems close for president to where there was no chance for any kind of sweep to where its gapped out again in clintons favor. Is there a chance that the pendulum can swing the other way in the next few weeks . In this election, there is always a chance for something, but it is really unprecedented to see this sort of collapse and d disunion and civil war breaking out in one party just weeks before the election. If there is going to be another surprise the way things are going, it wont be great news for the republicans. Stephanie, when you look into the market, how much is this on your mind . Was on my mind big time yesterday when the Health Care Sector showed signs of red i hadnt seen in a very long time. Its hard, its very difficult. We expect the volatility in a lot of sectors and in the market overall because of the elections. Trying to think a little longer term, trying to think of fundamentals, where there is opportunity on a day like yesterday when stocks are down 3, 4, 6 . On this thats when i try to nibble and focus on longer term. Jimmy, theres something im wondering about. If the split in the gop is happening because donald trump feels like he doesnt like paul ryan and those guys want to distance themselves from trump, is it so clear the supporters of donald trump, if they stick with him, is it possible that this does harm to the gop not because theyre associated with him but because theyre breaking ties with him for some of these congressional races . Yeah, listen, you might have people going to the bell box, peop ballot box, people who are republicans and they vote for donald trump, they dont vote for the other ones. Now you talk about a clean sweep in the first term of obama which they would have liked to have done if it hadnt been for the financial crisis. The financial crisis played right into his hands in terms of being able to spend a bunch of money. Right. Listen, if you listen to democrats, they would have liked to have done a lot more in the economy, they would have liked to do cap and trademe. They didnt get to do cap and trade. They didnt get to do obamacare the way they would like to. You might see the return of cap and trade. You might see obamacare spending more money. Youre certainly going to be the clinton tax hikes. Youll get a deal, a longa waited infrastructure tax reform deal, i think that actually has a good chance of happening. By that you mean bringing profits that are held overseas back here to Fund Infrastructure . A little bit of a tax break. Heres the beauty part. Theyre not going to worry about paying for it. Theyre going to die namically score the infrastructure, theyre going to dynamically score other things. Some Senior Citizens may not be tech savvy, but some, including barack obama, think cleaverless cars could have a big impact. Well have more on that after the break. 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. Selfstriving cars are seen as a potentially hot item for americas seniors. Aditi roy with how its transforming aging. This is the aging 2. 0 conference with some of the biggest names in tech here showing how innovation is really changing lives in the 50plus demo, which, by the way, accounts for 7. 6 trillion in annual Economic Activity in the u. S. Thats according to the aarp. And among the companies that are taking note of this booming market, google, while its unclear when googles selfdriving cars will go to market, one of the executives of its selfdriving car program says that when they do, seniors stand to benefit. When you cant drive, especially here in the u. S. , it can end be being really isolating and Everyone Wants to be able it to go out and run their errands, see their friends, go to the doctor, whatever it is, on their terms. And thats what a selfdriving car can really bring. In fact, she says that the company has had Older Americans riding in selfdriving cars to get feedback and in cities, it holds Community Meetings among the places they public lie size those meetings, senior homes. While she says Older Americans represent a key demographic, getting seniors to adopt selfdriving technology could be a road block. Only 12 to 15 of americans over 65 said they would use aautonomous cars. Huh rain says the key is educating seniors. And google is not the only company that is courting seniors. Both uber and lyft announced programs just back in august that it would target seniors. Back to you guys. And stay right there, aditi. What do you guys think of this . I think the 12 to 15 is probably low. As soon as you kind of have it rolled out and basically people see it works probably reasonably well. I think being mobile is probably more attractive than, you know, being comfortable with human driving the car or driving yourself. And i just think the whole industry of kind of dealing with people above 65, above 80, whatever the age is, is going to be tremendous. I think a lot of education is going to have to happen to get them to embrace this. Because a lot of them didnt even they dont even use technology today, right . Or i mean, im kind of excited that my parents with actually email and text me. My dad with now use uber. Impressive. Its the adoption of it. And the education. The education and cost to educate i think is going to be a big question mark. Aditi, did you see anything in terms of ease of hailing a car, getting into a car, those kinds of things . Yeah, you know, when we talk to jennifer from google, she said and the Research Really supports this, so much of it is psychological. The pew Research Reports that among some of the top reasons why Older Americans are more hesitant to adopt new technology has to do with skepticism. It has to do with someone not really being there to help them walk them through it, because sometimes its really tough for them to ramp up and learn it. But once they do, the Research Suggests they actually start using it on a daily basis. So its just getting over that psychological barrier, and jennifer haroon, the executive, said in her anecdotal experience, when they have put seniors, you know, riding in the car, behind the wheel there, proverbially, that they have found that seniors are really excited about the possibility of having so much more freedom and independence in their lives. So its a matter of getting them in those cars. Just like a lot of the rest of us, frankly. Thats the appeal for everybody. Exactly. And in ten years, having somebody 65 do this, that person 65 right now is probably more techsavvy than we thought. Probably true. Aditi, thank you very much. Halloween 19 days away and the creepy clown sighting thing is becoming a business story. Details, right after this. Any d. I do the sales, the marketing. I have to do that from my phone. We use tons of data. I really dont have to worry about it cause everything is unlimited. I need data and i need it now. Its the end of data limits for your business. 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Im val, the orange money retirement squirrel from voya. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. Halloween is fast approaching, and the creepy clown sightings that are popping up across the country are beginning to have a big impact on some businesses. Get this. Sales of clown masks and costumes are seeing a boost across online retailers. As a result, halloweencostumes. Com says sales are risen 40 this year. 300 over the past year. Im actually shocked by this. I thought precisely the opposite would happen. If clowns were becoming creepy, no one would want to dress up as one for halloween. I dont think its the clowns becoming creepy, i think its to dress up as a creepy clown. Im just wondering what people are opting against, not as many Donald Trumps as we thought out there . Ken bones, which you have to explain to me. It was making the rounds today on something called twitter. I have heard of it. Ken bone was this guy who asked one of the questions in the town hall, whose costume on the right this is a Halloween Costume that goes for 99, is sold out, stephanie. So im sorry to disappoint you. I dont even understand whats going on. Go back to the clowns. Are these people wanting to be the creepy clown or just a clown because its popular to be a clown . I dont quite get that. Mike saying theyre trying to be a creepy clown, which is weird, because you mentioned your daughter is freaked out about this. The whole grade is obsessed about it, and rightfully so. These are not goodlooking clown. I dont think theyre selling the bozo costumes. Ronald mcdonald, theyre kind of scaling back him. Did you hear that today . Hes a good clown. He says hes a good clown. The numbers are up, i think thats interesting. And i think if we have a bunch of those coming out on halloween, people, dont dress up as a creepy clown. Besides its a cliche now already. Mikel santoli. Fast money begins right now. Fast money starts right now. And we have some breaking news we want to go straight to dom chu. Breaking news on wells fargo. Just in the last couple moments here. This is dow jones citing sources saying that wells fargo president and ceo, tim sloan, will take over as the ceo of wsk and that ceo john stumpf, embattled because of the fake account scandal will retire as ceo. This is source reporting from the dow jones side of thing. Wells fargo also going that the board of directors, elizabeth duke, becomes