Transcripts For CNBC Closing Bell 20161014

And the cautiousness is on the investor side. Even numbers you put up beat down bottom line and topline. Join us live. You have heard by now what is twitter shares sinking after the Financial Times reported sales kbw says the biggest take away force is not interested in was that management doesnt know buying that company. We have confirmed that report what the Consumer Bank will look like in the future. Now and jim cramer spoke with sounds like a serviceoriented sales force ceo last week. Culture. That may be more wakovia import. You probably saw that here. Jim will join us with his take can you confirm that that kind on this latest news. A new study shows of transition is underway . Traditional sports are losing i can. In fact, we have announced that ground against e sports. We have the Boston Celtics in our retail bank we are moving player looking to diversify and much more to Service Orientation have become an esports team and going to be incentivising owner. That is diversification. Our team mbs for the way we have breaking news on customers feels when they do business with us including the martin shreli. Richness of the relationship, the depth of the relationship. You are talking about social we are a leading provider. We want to reward our people for media. Moments ago showing up walking in with some of the lawyers per making sure customers get what they need and that they are scoping along the way here for a happy with it and they use it. Status hearing ahead of his trial which is scheduled to that is our commitment. Start in june of 2017. Have you considered giving also having tiffs on twitter back some bonus money you have with the local bar saying he will have a meet up afterwards. The bar saying no youre not. Received over the past couple of years bearing in mew you have we didnt know about this. Been cfo for 2 1 2 years. Antics continuing. We are talking roughly a as a reminder he was arrested fiveyear period where the last december and charged with several counts of securities accounts were created and some of your bonus money may have fraud and wire fraud. Been from hitting benchmarks this involvement with his former that were achieved because of Bio Tech Company and hedgefund that he ran before that being creation of fraudulent accounts . No. Charged with a ponzi scheme they there are two parts that i think are important. One is have we had benchmarks say he defrauded investors at that hit as a result of this . As you have seen there was no his hedgefund. We will be looking for details revenue impact here. This was an incentive mechanism about the prosecutors strategy and evidence that may be helpful for employees that was to the defense. Illconceived and poorly we will bring you more from here executed that led to behavior that didnt help anybody. As antics continue. It wasnt generating revenue and thank you very much. Wasnt improving our bottom meg tyrrell there. Line. It didnt work for anybody. The banks off their highs with respect to our incentive but leading the surge in todays mechanisms we very specifically delay the amount of compensation market thanks to better than expected earnings. That senior people get at wells fargo over course of years so realized outcomes can be wilfred frost has details. Experienced and reflected in the the headline is a strong stock price and they are at risk bounce back in trading revenue for the performance of the and loan growth remaining company. I have a follow up question. Positive as q 2. This has been going on for five big beat for citi, likewise for years. People have lost their jobs. Jp morgan particularly for fixed over 5,000 people lost their interests and rates. Jobs as it was discovered over a both companies cfos explaining fiveyear period. Why not end the sales incentives then as soon as you found out the reason was high volumes and then continued through the this was going on . Quarter through lots of debate why wait until after it became on lots of central bank action. Public and you get this pr nightmare that you face right equity trading was weaker especially for citi and jp now especially if it wasnt adding that much to the bottom morgan and citi are skewed line . I think if people have the towards fixed income. Perspective in the moment of dont extrapolate too much. What they were understanding what they were seeing and loan growth remains strong. Dealing with then they probably would have. There were a lot of measures wells a bit behind that but made taken over time but were not up for it with its best fee enough. They were dialing back reliance revenue in five quarters. On sales goals. Wells lack of trading exposure and the bottom line these we changed leadership and results were strong all three approaches. Are there going to be more beating on eps. Soft retail sales slightly layers of the management that are eliminated either because of lowering chance of fed rate the specific jobs and people who hike. The markets focus on big reason are in them or because it is a for the beat being trading. Way of cutting costs and overhauling . Questioning whether it will i think there were nine people continue. Sticked on lunch time on a story between him and behavior in the they will not be receiving. Branch offices. After the Earnings Calls tim one is that the board has an sloan ad wells fargo thinks his independent review of all of these matters underway. Company will get worst before that will get to the bottom of they get better. Who incremently should be held meanwhile jp morgan lake accountable. Separately, we have new confirmed jp identified cross leadership. Mary mack comes from outside of selling issues of its own though the retail bank. Nothing systemic. She is a great leader. That is going to be a undoubtedly she will make the question for a lot of them now. Changes that she thinks are do they try to get ahead of the necessary at a minimum with issue . Respect to those layers that you it was quite juicy when they referred to. Identified they had identified others probably, as well. Before we let you go i need some. The overall take away from citi to personalize this. And jp morgan is there is i was in los angeles emceeing a nothing of the sort that wells fargo experienced. Big dinner and a waiter went out in terms of further costs, of his way and came up to me and said that he had been a wells regularatory legal costs they fargo customer and that two say we will answer requests for accounts in his name had been information. Opened without his they did seem to suggest it was a systemic increase in authorization. He was very, very angry about Regulatory Burden and will that, as you can imagine. Impact earnings. They are there and ready to i think about him all the time now as i watch this story unfold. Here is a guy that has no voice answer question. In any of this but yet he was one who was violated and his to some degree it is tough when you dont know what trust of the bank. What do you say to people like guidance will be. I think it would more than that waiter who need to hear help. That is absolutely right. From the chief Financial Officer the key factor for the stocks and from your boss that they can Going Forward is going to be if still trust wells fargo . We get a rate hike or not. What do you say to them . That drops through and i say he should be mad. Highlights that. We absolutely had something in real trading revenues wondering our system broken. We are committed to fixing it. And if we can talk to him if you is it going to continue for a want to pass along his month because they suggest in information to me we will talk october it was. To him. You cant extrapolate that we will deal with it and we through all of next year. Already would have made sure that if he was out of pocket absolutely. Thank you. That he has been made out. See you later. We will also be speaking with if there is any secondary consequence of what happened then we will take care of it. Wells fargo cfo john there is no denying that. John, thank you. Appreciate it. Thanks for having me on. Shrewsberry. Lets get to our closing John Shrewsberry. The dow up 66 points. Coming off highs a little bell exchange. And Rick Santelli checks in from bit. It has been a volatile day. The cme. John, yesterday the dow sold off sales force is the latest company to back away from bidding on twitter. 184 points then came back. Jim cramer joins us next. There is a new political vivl war brewing. Today it rallied. It has a way to revert to a this time it is in the Democratic Party. Senator Elizabeth Warren calling mean. It seems to be the market this entire week doesnt have on president obama to preplace enough strength to offset sell for failing to develop a in balances. Political spending disclosure im not fully convinced that this market is so weak at this rule. Point. We will discuss that potential on monday we had columbus day. Fallout later on closing bell. Stay tuned. Hey gary, what are you doing . Wednesday we had a religious oh hey john, im connecting our brains holiday. Those days ranks in the top five so we can share our amazing trading knowledge. Lowest composite volumes this thats a great idea, year. I think there is a lot of but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades participation. There is a lack of volume. The market has been bouncing with market professionals and thousands of other traders . Around on its own. Earnings season has helped our i know. Your brain told my brain before you told my face. Market substain a rally. We are seeing financials pull back. I think with the whole slew of earnings next week that will mmm, blueberry . Help our market continue to move tap into the knowledge of other traders on thinkorswim. Higher. Only at td ameritrade. Meanwhile, has the Global Deflation cycle turned . What do you make of deflation out of china. It will be going on a long time because the world doesnt have global growth. Weaken your currency and export yourself into prosperity. Everybody cant do it. The bigger problem is that means the fed cant possibly get to 2 they want right now because of the tsunami of things exported that are deflationary. They need to make an adjustment. You need to go for growth. We need to watch these Foreign Exchange moves. While all that is going on you are getting a response in the market place. Yesterday and the day before we had auctions. It is not a coincidence that that is about where we are trading and about the high yield of the day. That is the profit loss line. If you look at 30s, 30s are up a lot. The short end is unchanged. That dynamic is part the conversation you are talking about. Kind of this yes we cant get this man creates software, to protect this customer, the pricing pressure up. Who lives here and flies to hong kong, the reasons you cant get it up are flying in the face of any to visit this company that makes smart phones, longterm prospect of growth used by this Vice President , accompanied with sovereigns moving higher on the long end. This little kid, oops, and this obstetrician, none of that will work out to who works across the street from this man, the benefit of many especially those contemplating how long who creates software. They want to be in the equity they all have insurance crafted personally for them. Markets. We welcome you to closing not just coverage, craftsmanship. Bell for the first time. You are a classic bottoms up not just insured. Chubb insured. Stock picker. Im curious if you find anything in the Financial Sector or in anything in the sector that benefits from higher Interest Rates that gets your attention right now. We dont make macro calls like you said. With financials there are a couple stocks we bought lately. Bank of the ozarks and wal which we think will benefit. But in general we are not making those types of calls. Small cap is on the typical welcome back. Stock. Shares of twitter are sinking typically they are forecast on this afternoon on news sales force is ruling out a bid for earnings Going Forward. The company. Sales force joins google and were just trying to do that disney as companies that have over and over again rather than decided not to pursue a deal. Making money on Interest Rate jim cramer sat down with sales call. Isnt that the one that at force ceo last week and asked least at last check was about the potential for a deal. Shorting . He is making a call on all i can do is one thing commercial real estate there. Which is wish jack dorsey well. I guess i would say he is he is the ceo of that company. It is his job to make that a barking up the wrong tree. Great company. It is my job to make sales force i feel like they are the best under writers for any regional a great company. Bank in the united states. The ceo is probably the best for now what . Any regional bank. Jim cramer joins us now. They have a high commercial real were we misled to think anybody estate to capital ratio. Was really interested . They have gone over it with the what happened . Mark was definitely regulators several times. I expect them to probably beat interested at a price. I think mark found there were a on long growth and i think it is couple of issues involving the an attractive valuation. Lack of growth that the company lack of development. I know brian is under weight they let go of a lot of in the do you see developers. Most importantly shareholder opportunities there yet . Base. I do. He did not understand how it i think we have seen some would be. Activity that has occurred over they didnt want him to have anything to do with this because the past few quarters that gained more recognition in that mark has a growth path. Sector. I think we will see more of it this would derail that path for a couple of years as they fix as we get towards the end of the year. When you have a sector that twitter. I think the shareholders were pulls back it gives investors an just up and down. Opportunity to pick some spots. There was speculation about going back to what you said what price twitter might go for, about commercial real estate i whether they were asking too think the fed called it out in much or refuse to sell below a minutes just released as being certain amount. Now that shares have come down potential place of concern. For years we have seen the is there anybody who might be cranes over a lot of major more interested and would the cities. Company be more interested in do you have confidence here in maybe a lower price here . Real estate continuing to the company wanted 29. Perform . I guess you have to segregate the stock is nowhere near 29. By region and by market. I guess the way i feel is that when the stock was at 24 it seemed like it would hit 29. Instead of having big supply and was disney serious about it . Deplansd with which we had for not really i dont think. Was google . The last several years now it is i think google was. More market by market. The problem is that we have to in a case like bank of the ozark see the quarter. They are under writing it so it feels like there is further conservatively that the odds of them taking a loss is really deceleration. Delusion would be rather huge. Minimal. In that case if you look back to we heard jack dorsey was 2008, 2009 the last down cycle reluctant to sell anyway. They had losses. We heard he had been writing i anticipate that to happen notes to the staff saying we can again. Could there be some softening . Make this thing grow. How is he going to do that . Yes. I think there are indicators saying that. I think they have great hopes at the same time i think this bank is prepared for it. I think a lot of them are in for the nfl projects that they general. I think it has been talked about are do. I think that they are looking at fairly extensively. The company as it is and mark is usually arent too forward thinking. There is probably Something Else looking at the company in a to cause a problem. Thanks, guys. Different direction which is to appreciate your thoughts. Use Artificial Intelligence and have a good weekend. You, too. Machine learning to mind what we have a news alert on people really want. That is not what twitter is donald trump. Eamon javers stepping in with doing. Mark was chagrinned by the fact details on that. Thats right. That there was so much trash donald trump is campaigning in greens bory, North Carolina and talk and hatred and inability to bring in new people without fear just took a shot at the new that the site had to be cleaned up. That was something that would york times. Remember New York Times take a long time. Published allegations by a number of women that donald trump had engaged in most people seem to be doing inappropriate sexual behavior. Trump has developed a theory it for information, for news and for that kind of real time here on the motive for the New York Times. Here is what he had to say. Commentary on it. There is a report i think last the largest shareholder in week about bloomberg potentially buying twitter. The times is carlos slim. It does seem like it might be carlos slim comes from mexico. The right kind of fit. He has given many millions of dollars to the clintons. Carlos slim, largest donor of bloomberg is about profit. They are about quality the paper from mexico. Journalism and quality analytics and making money. Reporters of the new york anyone who takes this project on times are corporate lobbiests. We are going to let foreign will recognize that you will not make money on this thing for corporations and ceos decide the some time because of the amount outcomes. You just cant do this. Of money to really redesign it we cant let this happen. We are not going to let it and make it so people want to come to it. Happen where they decide the the growth is not growth at all. Outcome of our elections. I think jack dorsey and his team cnbc obtained a statement continue to tinker. From carlos slims office. I think that bloomberg would not he says he doesnt know him. Want the analysis part. He never met him in any way, i think the reason why people go to this thing is because it does that is trump. He doesnt know anything about have some great the fresh his personal life and to be honest he doesnt care about his news. I think he very much wanted to personal life. We never get involved in redesign it so he could mind the politics in mexico, much less in the united states. Data and work to make better that is the statement. Customer relations. Ironically as donald trump was that is what he wanted. Issuing those denials and those comments at a Live Campaign good point about the event Gloria Allred the attorney profitability. Jim cramer. We have more coming up tonight in los angeles was holding a press conference with yet on mad money. Another woman accusing donald time now for cnbc news update. Trump of sexual harassment. This person a contestant on the secretary of state jim cramer attending the Climate Conference apprentice who says donald trump urging a deal to phase out invited her to a bung alow and carbons from air conditioners inappropriately made advances on and refrigerators world wide. Her there. These allegations continuing for lets get this job done just this news cycle and throughout as we did in paris. Lets do it the way we did. The rest of this election cycle. Lets get it done in the next thank you. Eamon javers in washington few hours. Lets move forward and together there. 45 minutes to go. I think we can leave here with dow is up 72. S p is up about 4. The transports are one of the pride in the foundation we have big laggers only up 2 points. Laid for the greatest change our planet has ever seen. Up next a first on cnbc flood waters still rising in parts of North Carolina hit hard interview with wells fargo chief by hurricane matthew. Some 55,000 people are still Financial Officer john without power as entire neighborhoods have turned into huge ponds. Matthew dumped as much as 17 inches on that region. Shrewsberry. Coming up jim cramer gives us beginning next month you can no longer wear your glasses in u. S. His take on whether other passport photo. Suitors could step up with twitter shares down 6 . State department banning applicants from wearing them because of glaring in photos. Big response to that one. I had a bad experience trying to get my passport picture in the first place. Is this the one where you cant smile. Supposed to be very think of your drivers license and being at the dmv for hours and hours and hours. Exactly. Thank you, sue. Youre welcome. 23 minutes to go here. Dow is up 76. S p up 4. 5. Transports are lower. Nasdaq holding up to a gain of eight. Minor rally for stocks to end the week. Are bulls setting up for big end of the year. We will hear from a top trader. And united is the latest airline to get hit by latest computer outage. Woman how do we protect them from 4 billion in new cuts to california schools . Man vote yes on proposition 55. Woman prop 55 doesnt raise taxes on anyone. Man not on working californians, not small businesses. No one. Woman instead, prop 55 simply maintains the current tax rate on the wealthiest californians. Man so those who can most afford it continue paying their fair share. Woman . To prevent new education cuts. Man . And keep improving californias schools. Woman vote yes on prop 55 to help our children thrive. The worlds most exciting technology. Doesnt go on your wrist. Woman vote yes on prop 55 we need to be ready for my names Scott Strenfel and r im a meteorologist at pg e. The highly advanced audi a4, with classleading horsepower. We make sure that our crews as well as our customers are prepared to how weather may impact their energy. So every single day were monitoring the weather, and when storm events arise our forecast get crews out ahead of the storm to minimize any outages. During storm season we want our customers to be ready and stay safe. Learn how you can be prepared at pge. Com beprepared. Together, were building a better california. Shares of wells fargo have been fluctuating climbing back now from earlier losses after the Bank Reported Third Quarter Earnings Results days after ceo john stumpf departed the company. More on the results among other things. Lets bring in wells fargo chief Financial Officer John Shrewsberry who joins us on the phone. We realize that you could easily have cancelled the interview that we normally do on a quarterly basis. We appreciate that you did not do that. We are sorry you are on the phone and not on camera. I look forward to it every quarter. Frankly, during a quarter with a lot of news its good to get out in front of people to talk about it. A lot of news. Let me start with news just today. You know no doubt that the state of ohio joined a list of other states in suspending your company from doing business, holding a business relationship with the state on any offerings they have for one year. How much of a hit is this causing your company right now . Welcome back with about 20 california, illinois and others are doing the same thing right minutes left to go on the session im on the floor with now. How much is that affecting your company . That business is part of our art cashin. Wholesale banking business which these markets have been is where we do all of our corporate lending, our under writing including for public fluctuatin fluctuating. Entities. There are a handful of customers we are still under the sway of crude oil. You were at the low of the day we have heard from. When crude dipped slightly because of the size of wells fargo and because of the diversification of our business lower. It doesnt have an impact on our so it still remains to be the same into the market. Aggregate results. Next week very important. But those are customers who we we are going to get another president ial debate. Really want to win the business we will see if the campaign back from. Comes apart or turns more kind we provided a Great Service to them and we will compete to win of acidic. On thursday we will get the ecb. The business back when this timeframe is over. That could be critical because not a big mover for the company the effectiveness of the central overall. Banks is nothing under more and see the customer visits were more doubt. The oil has been on a four down 10 . Week winning streak even with customer Checking Account the dollar higher. If what you are saying about opening down 25 . Markets is true what happens if one example saying he thinks you we cant continue that guys will struggle to hate your performance . I think the people continue to believe there is some kind of numbers. Tim sloan said he thinks things deal with opec and producers and will get worse before they get i dont think so. Better. On what front do you expect i think they are all lying and cheating and i think that will things to get worse . Become evident in coming weeks. So we included today in our i thought you were talking about our politics. Quarterly information an extra ten pages at the beginning to thank you so much. Heading to the close with 18 help people transparent understand what is going on minutes left the dow started to inside the bank. Pick up, up 82 points. We showed what happened in the popularity of esports is month of september with surmging as tv ratings for like different types of account openings so people could the nfl are declining. We will talk to an nba player understand the magnitude. Those account openings dont who got into this growing game by buying an e sports team. Really translate into Financial Statement outcomes. They do reflect the fact that very interesting. Our own team members were on the nobel literature prize the their back foot during the month for all reasons you can imagine. We are changing the model on how we serve people in the stores focus of market acronym of the week. Alpha seems more elusive today. And branches in the Fourth Quarter and going into the beginning of the year. Is it because so many go after it the same way . It will definitely have account chasing after short term returns. Growth impact and some revenue instead if getting caught up with the crowd, impact down the line. With respect to our numbers and the Investment Managers at pgim take a long term view, teaming specialized active investing litigation no question that overthe course of the next with riskmanagement rigor, couple of years we will be to seek out global opportunities. Dealing with incremental we manage over a trillion dollars this way, attracting many of the worlds leading investors. Partner with pgim. Matters. We filed what describes the stuff coming in. The Global Investment management how much will you set aside businesses of prudential for litigation costs . It is too early to tell. Okay, so you launched your banks app. This is all brand new. Ballpark . There is no way to put a now what . How will you keep up with the new demands number on it. We set aside for things as they of todays Digital Economy . Happen. The fact is we already reserved for the 18s some believe they wont need a Traditional Bank down the road, so at cognizant, were helping banking and Financial Services Companies Think digital, be untraditional, and reimagine what the bank of the future can be. Our clients can now leverage customer intelligence to predict their financial needs and provide more contextualized products and services. Were creating new platforms across channels so customers can effortlessly invest, borrow, lend, transactwhereverwhenever they choose. And were digitizing the way banks run, driving efficiencies and delivering new value for their customers in return. Digital works for banking and Financial Services. Lets talk about how digital works for your business. 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. Fascinating study shows the rise of esports, competitive gaming. We would sit here and watch other people playing video games in competitive teams. It is growing people and pulling fans away from traditional sports. According to the Research Firm new zoo 76 of e sports fans say they are spending less time watching traditional sporting events because they are spending more time watching the video game competitions. The recent boom has professional basketball and Baseball Players and owners buying and investing in the teams. Our next guest is one of those athletes. He recently purchased multiple teams. Welcome to post nine. Welcome to the new york stock exchange. Youre making a big investment here. Have you had experience in this before . It has been an interest of mine since i have grown up to have an opportunity to invest in it and own my own team. It is a dream come true and im excited about it. You watched this unfold. You saw more people want 10,000 to 30,000 people at a time will watch the competitions and it is only getting bigger. I have done a lot of research and seen it grow tremendously and by the day. I got an opportunity to get into it and i took it. One possible pitfall some parents are starting to complain about is gambling in e sports. It is kind of coming. It is a huge success. What happens if there is a clamp down on activity . I understand that. It is the same in traditional sports where gambling is the problem. I see it as the future of sports. Its here now. I dont know what the rule is. It keeps growing every day. More people are interested and investing money. Tournament prices are getting bigger. I dont see where it is going to stop. Do you buy more teams . You have three teams now . We have call of duty team. We have a smash team. We are looking to expand and want to grow into onest organizations in gaming. If i grew up watching basketball and i clearly missed the boat on this as some younger kids am i ever going to watch e sports or is it solely focussed on newest generation . I think it will grow on everybody. It is very competitive. Like i said, im comparing regular sports to e sports. I think it is growing in everybodys eyes and everybody will see the growth of e sports in the next few years. What do you think the impact is on your day job. The traditional sports where ratings are not as strong as they used to be . In my day job basketball is everything. I still believe it in traditional sports. There is a lot of people that enjoy watching e sports. I see growth in both. You do see growth in both. More towards games they can identify with where they dont identify with what we call mainstream sports. I think we are going to see a balance. The growth is going to stop a little bit here soon. E sports is common. A good way to hedge your bets. Like they always say you should never have Stock Options in the company you work for. How are you guys going to do . We are going to do great. You going to watch out. Only one answer to that question. I expect nothing else. Nice to meet you. Thanks for having me. Esports titan and owner. David doris is feeling noble with his market acronym this week. He will spell it out when we come right back. En a moment tus romantic, why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. 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He said famously you dont need a weatherman to tell you which way the wind is blowing but you need cnbc, first in Business World wide. I remember when he said that. The acronym for this week that brings the market themes together would be nobel named after alfred nobel. The n is the next fed move. We have a lot of weather indicators this coming week. You have the empire state. You have the industrial production. A lot of things. This coming week that will give the fed indication whether they should move or not. The o is oil. Oil is above 50. Its more importantly that russia and saudi are paying attention which worried the market earlier this year. The b, banks in favor. Everybody like squirrels running around putting acorns in the trees everybody should begin to move based on possibility of Interest Rates rising towards the end of the year. That would mean banks, Insurance Companies and limited partnerships and reduce telecom, utilities, and reduce gold and gold miners. That is the politics issue which is e. E is the election. Everybody watching needs to get oil, gas, coal up. Financials and health care stocks, pick your poison. Maybe take a little bit off the table and let things play out a little bit. L is libor about treasuries versus nontreasuries. And there you want to basically Pay Attention to this. I have a gift for you right here. I meant to tell you. And your assistant is the coauthor. That is our new book. That is for you, kelly. I am honored. Thank you, david. Nobel, the acronym to watch. We have to get back to the market desk with sue. Thank you very much. The department of transportation and also the federal Aviation Administration are now putting in an emergency order that will ban the Samsung Galaxy note 7 devices from air transportation in the united states. You also cannot ship it in baggage. You cannot ship it at all. Keep in mind there has been a total recall of the galaxy note 7 phones by samsung. They discontinued producing the galaxy note 7. If you have one you are supposed to turn it in. In the wake that the problems the device has had d. O. T. Banned all note 7 phones from airplanes. That goes into effect october 15, 2016 at noon eastern time. Bill, back to you. Thank you very much. What a crazy story that has been. We will take a quick break and come back with the closing count down right after this. 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 i am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle and it keeps my investments fully mobile. Even when im on the move. Sign up at etrade. Com and get up to six hundred dollars. Closing bell is sponsored by etrade. Dont just see opportunity, seize it. We are really late with all the breaking news. Let me get to this quickly. Bob pisani with me. Lets look at the last five days with as many markets. The dow is as volatile this week as it was last week. It seems like every time we would have a sell off it came back. When we had a rally it came back. When it all is said and done i bet we didnt see Much Movement there. We will get to other things. Ten year yield hit 180 and then came back. Only very little as we have more rate hikes down the road. Wti we hit 50 and we are holding them. Stopped going up so energies was a leader and now not doing as well. The higher dollar as been a problem for the market. I have a problem there because the Leadership Group but it has been down about 3 this week. Bank stocks start going up. Energy, as well. Semi conducters would have a big move also down this week. Have a good weekend. Up 43 to close out this week. Outward bound at the nasdaq. Stay tuned for the second hour of the closing bell with kelly evans and company. Have a good weekend. Thank you, bill. Welcome to closing bell. Im kelly evans. Here is what we are finishing up. Strong session. It looks like we are going out with a gain on the dow 41 points. It is clearly the outperformer. The blue chips with the gain to 18,000. Out pacing s p. We will see how things continue to settle out here. 2,133 is closing level. Nasdaq up less than one point to 5,214. We spoke with wells fargo cfo last hour about how executives rur playing to deal with the fallout from the account scandal. We are looking at whether the bank is doing enough. Here is a look at how shares of both companies close. Surging on the news it closed up. Twitter fell it closed lower by about 5 . We will take a look at the future of the social Media Company and whether there are more potential buyers left in just a bit. Joining me on the panel today we have cnbc contributor and fast money trader guy adami. With us is tom brown, ceo of Second Curve Capital along with willfred frost. What are your thoughts . Let me add that we close with the ten year treasury of the dollar moving up. Bill dudley commenting that he still he said i would expect this year for the feds next rate hike. Over all last two years the s p 500 where it has been for two years. I think over the past couple of weeks we have seen some very good trends. Number one has continued. The 30 is around 256 or Something Like that. It was down in 220 back in august. That is a big move in the long bond. We are seeing higher oil prices. Im going over the last couple of months. Higher oil prices good for oil stocks and good for the stock market. We are seeing with the yield curve expectations of higher rates from the fed. We are seeing relative strength in the financials. That is all good. I think pricing in a Hillary Clinton win which i personally and for the stock market i think is a good thing. All of that i think is a good it doesnt mean i think the market is going to break higher but i think it probably stems the livelihood of a big down draft in the market. What about you, susan . Especially as we have been digesting Bank Earnings . You have seen it was good and then coming down and then come back up again. It is a sense of it is not as bad a we thought it might bow. I think the prospect of a rate raise is uncertain. Dudley is saying yes from Janet Yellens comments talking about High Pressure economy suggesting maybe they let inflation go before they decide to raise rates. I dont know that they are sending super clear signals and the fact that everybody is waiting for. There are other things happening today. The bio techs were down about 6 . Their worst week since april. Maybe it goes back to the whole thing about discounting clinton in the white house. What do you think of these moves here . I think you have to take them all and you have to look at them in the aggregate. The fact that rates are going higher, they say a zebra doesnt change its stripes. Im not about to change mine. Even i have to admit the movement in the bond market has been profound to say the least. I still think we are in this deflationary period. The bond market is saying Something Different right now. I think rates are going up for the wrong reason and the market might be the final judge of that. Talked about maybe that is exactly what we are talking about. That would be really unfortunate because i think it is happening at a time when the economy is backing up and slowing down. Thats what i have been saying the fed finds himself in the corner that they cant extract from and think they are getting the worst of both worlds. Slowing economy and earnings, i dont want to say recession but slow down. Despite the fact that we say what a great Earnings Release year over year earnings are down. Something is going on here. Lets bring in wilfred. If we look at dollar amounts. For jp morgan down 7 on the years. For wells 5. 6 billion versus 5. 8. Citi 3. 8 billion versus 4. 3. You can see the downward trajectory. I think more important is what we did against expectations. All three did beat. Marginal for wells. Significant beats for citi and jp morgan. Why did we slip during the trading day. I think it is two main factors. The first focus on jp and citi on trading. Question is will that continue to next quarter. That was one issue. The other comes back to bond yields. You guised mentioned it. We Beat Estimates today. Why have we rallied so much . The difference share prices have already done well for the banks coming into these numbers and that really comes down to what bond yields have done and rate hike expectations. They have had a bit of a rally over the past couple of months. That is why i think there is more room for slippage in the share price. What about you as you rifle through the earnings reports . They were definitely a little better than expected. Nothing really to write home about. The jp morgan numbers were the best of the bunch. They were good and they really show that the big banks are winning today. In my 35 years of covering the banks big banks lost share of the are tail business for years. Right now they are winning in the market place. Do you think we saw actually the stocks start to come down in the middle of the wells fargo call because as people digested the idea that they dont know where the retail bank is going. They are talking about year over year september versus last september. Significant decrease in credit card applications and some sort products. So it seems like this is going to be more of an ongoing story that they will have trouble with acquisition. We have a graphic on that which i think we can bring up in terms of the business they lost. You referred to it in terms of Checking Accounts. 143,000 fewer in september of this year compared to last year. In the headline that is a scary number. When you relate it to 33. 2 million accounts in total it is less relevant. This isnt an earnings issue for wells. I think that reaction if it was because of Earnings Call perhaps the other banks i thought their responses relating to this issue were encouraging. There is this impression that the banks especially the big ones, everyone likes regional trades. They think the big banks will continue to be under regulatory pressure. You say they are winning the first time in some time. Getting deeper into that. Every year about 10 of Bank Customers switch banks. But about 20 of the customers under the age of 35 switch and about less than 5 of the people over the age of 55 switch. So the people that switch banks every year are the younger customers. And they like the mobile banking, Digital Banking offers that the larger banks provide. Even though they are part of the generation and the Political Campaign that rallied against the big banks. They seem to have stood for so much and everybody thinks is wrong with the state of the country. You are saying the youngest generation it is not swaying their decision about where they are opening account snz. There is a big gap that has never been there before between Customer Satisfaction and image. So the Customer Satisfaction of these people are a lot higher than what they think of these banks. So its got to close one way or the other. I think the image is going to go up. Do you think banks are the larger banks are just better able to adapt given the cost of technology and investment in the kmaudatization. What is happening big picture over the last ten years . It is huge and if you will with regulation more utility like profitability for the banks. Doesnt scale just make a huge difference in terms of taking advantage of that . Finally we have talked about big banks getting bigger to achieve scale t. Never happened before until the last five years. One ceo i talked to said how can i compete with jp morgan . They spent 3 billion on technology. I spent 100 million. This is one of the top 50 in the country. Increased regulation is making them bigger and putting them at competitive advantage. The opposite of what the regulators and politicians want. It has been under the radar a little bit. Goldman sachs online lending and savings platform and will probably hear more about that next week when they report on tuesday. Bank of america another one who has done a lot on the technology front. Do you have a position on the financials . I do. I will mention this and throw this around and im sure people are going to evisc rate me on this. Book value is 63. Thats give or take. Tangible book value is about 51. 50. If banks are more like utilities what should a bank like jp morgan be trading closer to . Book value or tangible book value . That i guess comes down to the question. What is the right valuation for the banks . Book or tangible book. I think it is closer in this environment to tangible book than book value. I will throw it out there and now come at me. You want to weigh in . I think it is much more important to look at earnings. All these companies are trading at ten times next years estimated earnings when the market is trading at 16 times. The large banks are likely to grow as fast next year as the s p 500. Which would you rather a company ten times or 16 times . So it is finally going to catch up. Whichever multiple you look at wells was premium rating. Jp had best numbers today and didnt perform as well as citi. Any other places you are looking . They have taken the wind out of the bio tech trade that i thought was working. You find it below the 285 level. You have to look at it again. I still think there is a place for health care here but i think people are getting concerned that not only is mrs. Clinton going to win the president ial election but maybe the house can change and the senate can change which i think has people really scared about being in this space until the election. I think you have to wait and see what happens. Well let you go. Thank you so much. There is more coming up next hour on fast money. Bidders running from twitter. Thanks for joining us here talking through bank results. 40 million is how much Comedian Chris Rock will be getting for two comedy specials and a deal he signed with netflix. And president obama has three months left as commander in chief and Elizabeth Warren is calling for him to replace Mary Joe White as head of the sec. Mary kudlow weighs in on the reasons behind the senators push next. With sleep number, you choose the exact firmness and comfort you want and so does your partner. Amazing sleep for all. Its the final days of the columbus day sale, with the queen c4 mattress set now only 1399. 98. Learn more at sleepnumber. Com watch out Mary Joe White. Senator Elizabeth Warren. Eamon javers has the details. Senator warren released this blistering letter at about 6 00 this morning. She wants president obama to fire Mary Joe White as head of sec, demote her to regular commissioner, elevate somebody else presumably a democrat to the top job. The reason she says is because she is upset that Mary Joe White hasnt pursued a rule to require publically traded companies to reveal political spending. Democrats want to see the rule passed. Mary joe white has not moved forward on it. Here is what he said in a letter saying this brazen conduct is merely the most recent example of chair white undermining priorities and ignoring the core mission of investor protection. There is a history between the two women. Take a look at this exchange that happened in a Senate Hearing in june. Clearly no love lost here. A year ago i called your leadership at the sec extremely disappointing. Today i am more disappointed than ever. Thank you. Im disappointed in your disappointment and could not disagree anymore with your characterization of what we are trying to do to improve our disclosure regime for investors. So what is going on here is a little bit of politics. Democrats here in washington assume that Hillary Clinton is on her way to victory. This letter this morning not really necessarily addressed to barack obama but a message from Elizabeth Warren saying what type of person she wants at the head of the sec next year if Hillary Clinton were to win and signaling the role that Elizabeth Warren is going to play in a potential clinton administration. That is sort of a rock of the left making sure thereat Hillary Clinton who a lot of liberals dont trust in terms of Corporate Governance in wall street doesnt move too far to the center or right. Fascinating politics and maybe post election dynamics at play. Joining us now are larry kudlow, cnbc senior contributor and also with us laura unger who was sec commissioner from 1997 to 2002 and acting chair from february to august 2001. Larry, so is she out . No. She is not going to be pushed out. This is just politics. Senator warrens beef is with the south caroliupreme court. There are disclosure rules. The federal Election Committee requires disclosure rules. How much paperwork these companies have to do. Senator warren is conducting a war against business. It sounds like mary jowhite would like to stream line and not force more paperwork. Me, you know what . Kelly, every time anybody gives a donation i believe in free speech. I dont care how much money you give, you want to give a dollar or a Million Dollars fine. Just disclose it in 24 hours on the internet who you are, who you work for and relevant information. That would uchbl solve all of this stuff. Immediate disclosure on the internet. I no longer agree with you, larry. Sorry. While there are certain merits to discuss about the disclosure issue itself more importantly is the structure of the commission itself as you know the s. E. C. Is an independent agency. So appointed by the president , confirmed with advice and consent of the senate. To have an individual member of congress dictate the agenda or the rule making and schedule of an independent agency is a very bad thing to accommodate and i think the chairman is completely right to stick to her guns on this. She is very interested in investor protection, i can assure you. Going to the actual merits of exposing political contributions while i dont think they should disclose within 24 hours a dollar they spent i think having sort of a disclosure item is not a good thing for the disclosure regime in general. Let me ask you about the point brought up about this being a gesture to keep Hillary Clinton from moving in a potential administration too far to the center or the right. Do you think that is what this is about . Should we expect more of this kind of a move . Thats an interesting question. With the release of all of these emails hillary says one thing in a fundraiser and says another thing publically on the campaign trail. I scratch my head. Im not sure. No question that senator warren in staking out a position as spiritual guru or god father or god mother of the Democratic Party to the left and Elizabeth Warren doesnt like this. She doesnt like corporations and doesnt like banks. This is a shot. Laura is right. The process here you are not going to break up the process just because of one senator. So i think this is just pure politics. Laura, let me just understand this. You have to disclose the sec has rules as a result of citizens united. You have a superpack. Anybody can give to the superpack. Now, correct me if im wrong those contributions are disclosed. This is part of the regime. I thought there was a lot of disclosure for the fec regime. Krm n of course, there is always materiality threshold. I think a lot of companies have found that disclosure is good practice. So they are going ahead and putting that information on their website to the extent that it is practicable. I also think that if shareholders really wanted that information they are not shy about asking for it. I think there is no shyness to be had for shareholders these days. You would see the pressure come from that end. Thats a good point. So i have great respect. So lets take visible people. If they host a fundraiser or a Cocktail Party they have to disclose that at some point in the federal election process. I think what senator warren is saying is you must disclose it as part of the corporate. I guess a 10 k or something. I think mary joe is saying we dont need that paperwork. Is that a Fair Assessment . We have to go last word. Illustration of how that stuff could run amuck is disclosure. Thank you both for joining us this afternoon. Very much appreciate it. Netflix down 11 . The streaming service releasing Third Quarter earnings monday. We will bring you the latest details of the 40 million deal with chris rock next. Apparently no one wants to buy twitter. Now that sales force is out are there companies willing to buy twitter . We get the take coming up. 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. Chris rock made his name headlining a series of comedy specials for hbo but making a deal with the video streaming service. Lets get to Julia Boorstin with the details. Netflix announcing a big deal with chris rock days ahead of the Second Quarter earnings report. Chris rock will make the first comedy specials in eight years. Netflix paying 40 million for two specials the first of which will be next year. Analyst says this is likely the most netflix has spent on this type of content. 40 million has to be seen in the if you are spending 6 billion on all kinds of shows maybe you can throw 40 million chris rocks way and it doesnt affect pnl and turns out to be a good investment. Furthering reputations as a destination for standup comedy. Rock joins a number of critically acclaimed. Netflixs win is a loss for rival hbo which was reportedly also bidding for rights. Hbo does have a 20year history with rock. Now the big question is whether securing this kind of premium content will help netflix accelerate growth after subviber numbers fell short as well as own projections last quarter. I want to come back to earnings in just a moment. The interesting thing is the bear case has been content cost. Then you see 40 million. How long can this continue . I am platform ag nostic. There is a comic that has a net fliks series. I think it is absolutely excellent. Im thinking how does netflix make the economics . It is a very well produced show. I cant figure out how they make the economics work. I think a lot of these shows whether for hbo or netflix they have to do it. It is great for the artist. Two chris rock specials would that be enough . The fact that they have gotten out of the broad stable to afford and get a headliner like rock. Last quarter they were lagging and that is something i think they are trying to drive. What is the expectation for subscriber growth . Well, this time is for about 2. 3 million subscribers two million would be coming from overseas. The real question here is what kind of impact did we see from things like the olympics. What are we seeing from impact of new shows such as Stranger Things. Netflix hasnt revealed ratings but there are shows like Stranger Things that everyone is talking about. We will have to see if that kind of new content is having Material Impact on subscribers. A lot of shows they are creating based on data they have about what people want to watch. That is true. Use lg that data to try to figure things out. Thank you for joining us. Time for a cnbc noouz update. Thank you. Here is what is happening. The government has issued an emergency order banning all Samsung Galaxy note 7 smart phone devices from transportation in the u. S. It bars owners from carrying on devices or putting them in baggage during flights. The ruling goes into Effect Tomorrow at noon. The Florida Supreme Court has ruled a death sentence require as unanimous jury. It struck down a newly enacted law allowing a defendant to be sentenced to death as long as 10 out of 12 jurors recommend it. A connecticut judge dismissed a wrongful death lawsuit against the maker of the rifles used in the sandy hook elementary shootings. And starting in january couples for the first time will be able to get married at night in front of cinderellas castle in disney worlds magic kingdom. The newly weds and guests can celebrate with reception at fantasy land. The cost, a minimum of 180,000. Thats the news update. As a father of a 19yearold daughter who cant put a price on your daughters happiness. You can. Chicken nuggets in central park. Im with you. You can put a price on it. Minimum of 180,000. There you go. Unbelievable. Thank you, sue. Have a good weekend. Shares of sales force are popping on news the company is officially out of the running to buy twitter. Is there anyone left who could be interested in buying the social media site . Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. 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Wow, i guess we dont need the kid anymore. Custom alerts on thinkorswim. Only at td ameritrade. The dow closed up 39 points. It was by far the out performer. About a quarter a percent gain. S p up half a point. 2,132. Shares of twitter sinking after sales force announced it is not going to bid for the company. Twitter was down 5 . Sales force up 5 . Is there anyone else left to buy twitter. Lets bring in kara swisher who dpro joins us by phone. Are you hearing of any potential suitors . Well, i think the problem was that the potential suitors got overhyped and now they are in a mode of thinking everything is for sale. It is a problematic company. We did a lot of analysis about a month and a half ago. Everyone of them had hair on them. I dont know how else to put it. Everybody had a reason not to including price. I think the issue is a lot of people would look at it at a lower price for sure. I think pretty much everyone considered a bidder look at a as a lower price. It is kind of a bad situation that way. The other potential buyers are problematic like Chinese Company would have a lot of trouble passing committee on foreign investment. You can think about microsoft or ibm. Again, all of them have other things they are doing and twitter is really hard nut to crack. Kara, do you think that part of the problem here is the valuation they were looking for . Is that part of the issue here or is it just that the whole Business Model doesnt make sense to people right now . Price is always most important thing. Some Companies Like google dont care. They dont want to pay too much. It is not anything to determine on. It doesnt help the situation if it is a very high price and it is problematic. There is management issues. Comcast that is one of their issues from what i have heard from sources there. What do you mean by doesnt have anybody to run it . Meaning they dont have management in place to do the integration. Im using it as an example. A lot of companies dont have what it takes to make it a successful integration. When you are paying billions of dollars that is a lot of money. Were at the height of the political election season right now. When you would think that twitter is peaking right now in terms of use and profile. One of the candidates has this weird addiction to the format. So my question is if they cant sell the company now i can assure you come next february it will be dark days of twitter. What point do they pull the plug and say lets just revisit this a year from now when we when it is i think so. One of the things, exboard members told me it is more of a phenomenon than a company. It has never been more like the ceo of linked in, another possible buyer is microsoft. So its not happening. That could be he was talking about what an amazing platform it is. All the announcements around the recent election have been made on twitter. Its a very useful platform. So its great to be a social phenomenon. Maybe donald trump will buy it at the end. Who knows . Once kelly evans signed off i knew the sale process was doomed. She said he cant afford it. Thank you for calling. Appreciate it. No problem. Thanks a lot. With the latest on twitter. Wells fargo has a new ceo. Many are arguing it is not enough to right the wrongs as the bank deals with fallouts of fake account scandal are more problems ahead . If you want to help the economy eat a cheeseburger. The impact on the economy coming up. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. The first since the banks fake bank account scandal was settled. Last hour we spoke with wells fargo chief Financial Officer about the fallout and whether he has considered giving back bonus money he has received. There are a lot of measures taken over time that just werent enough. They were dialing back the reliance on sales goals. We changed the leadership. We changed the risk management. Now we have changed the approaches to how people are incentivised. There was no revenue impact here. This was an incentive mechanism for employees that was illconceived and poorly executed that led to behavior that didnt help anybody. It wasnt generating revenue and wasnt improving our bottom line. It didnt work for anybody. Joining us now for more is emily blazer from the wall street journal who has been following the story throughout. Thank you for joining us. At this point there is so many moving pieces. Ohio with Governor John Kasich said it was going to sever relationship with wells. It doesnt seem like we are at the end of this at all. I dont seem to think so yet. In fact, there is so much Going Forward we need to find out more about what this means for the retail bank. That was something that was missing today. We know that it impacted customers interactions with managers, the number of credit card applications. I think there is a lot more to learn down the road and find out what will happen with the state and federal investigations including from the justice department. Its susan. I wanted to say you have been reporting the heck out of this story. Congratulations on fantastic reporting over the past couple of weeks. My concern listening to the Earnings Call was that im not sure they get it entirely. Somebody asked whether or not they needed fresh eyes at the top. And then pushing customers into overdraft protection and the reaction was we were surprised to read the stories, too. They were supposed to have been reviewing it. Here we go again. Do you still think these are the problems that they are facing . We wrote a funt page article that the bank is not doing the best job with Crisis Management y. Would say there was a little bit of improvement but still a ton of unanswered questions. You make a great point when you bring up the analyst questions about why tim sloan was named new ceo and what the process was like. One analyst said they were disappointed that the new chairman, the former lead independent direct r director was not on the call. That would be unusual. Given the severity of what has gone on and so much in the last week its not impossible. On overdrafts we spoke with several current and former employees and managers saying there were problems and pressured to opt in customers to the service or at least enroll them without their full understanding of what was going on including a recording of a persons phone call where that person is still pretty high up manager at the bank saying to push this. It is hard for me to think that the overdraft situation is not a problem. We stand by our report tlg. I think that there is a lot more to find out in terms of the executive management, the boards decisions and the whole new slate of opinions Going Forward. I have a question regarding the kind of context of which this took place. When kelly and i were on about a few weeks ago that was the day the news had broken we were with a bank analyst who basically said no big deal it will not have an effect on the bottom line. The point of view was a model or numbers driven analysis of what fundamentally was a Brand Management or Crisis Management exercise. And it seems to me based on your reporting and everything we have learned that there is a very insular oriented towards wall street culture at wells fargo where it is all about hitting the numbers. What do you do to hit the numbers. The fact that it takes place in the context of a Public Company seems to be out of the loop somewhere in the culture of wells fargo. Am i overstating that or do you think that is true . You bring up the culture question which is one that has come up so much recently. I thought it was interesting that tim sloan, the new ceo and the more recently coo and president almost admitted that the bank did have a culture problem. He didnt say it was the closest that management has gotten to saying that they have something they clearly need to fix that was happening throughout the bank. In terms of the 185 million settlement that we reported on september 7 and then announced on september 8 i think we can take Warren Buffetts advice to the former chairman and ceo. That was said on cnbc. Buffet said you cant judge it by just the number. There is so much potential harm that can exist. Even though 185 million is pe y pennies for a firm like wells fargo you have to look at the reputational impact. I think the bank is finally realizing that. In terms of insularity of management and in terms of the bank in general i think that exists. The bank touts its long standing, long tenured management. These folks spent decades at the bank and promote from within. It is rare for them to bring in someone from the outside. I think that is part of why they did promote tim sloan. It was almost not surprising they didnt have someone different. Just as we are saying this reuters is reporting that the board will publicize results of the probe. We will let you go and get back to it. Thanks for joining us. The Holiday Travel season is right around the corner. Up next the department of transportations monthly Airline Report card telling us the best and worst names in air travel. Stay tuned. Mary buys a little lamb. One of millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of at t, and security that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. With new cabinets this wfrom this shop,house, with handles designed here, made here, shipped from here, on this plane flown by this pilot, who owns stock in this company, that builds big things and provides benefits to this woman, with new cabinets. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. Welcome back. The department of transportation is now banning the galaxy note 7 from all airline flights, effective tomorrow at noon. Its just days after samsung stopped producing the device, because of a fire risk. Samsung has said the recall of the phone will cost more than 5 billion. Now in other airline news, the department of transportation also releasing its air travel Consumer Report card for august earlier today. We always enjoy hearing about the winners and losers. Who are they this time around, phil . Kelly, an interesting group. The team the group of airlines at the top is the usual suspects. Were talking about hawaiian, alaska. These guys have traditionally been dominating this list month in and month out. And thats the case again this year. All landing more than 81 of their flights on time. In hawaiians case, 92 of the time. And sky west. At the bottom of the list, frontier coming in as the only airline with an ontime arrival rate under 70 . There you see spirit and american, as well. What stands out about the august report card in terms of Airline Performance is the surge in the number of complaints from people who were flying. The d. O. T. Does log those complaints. It was a 14 increase in complaints, compared with july. But keep in mind. Early august is when we had the computer outage at delta. 2,000 flights scrapped and as a result a lot of people standing in line. We saw the video. We interviewed a number of those people. Thats usually when the d. O. T. Gets more complaints. A high travel season or high extra month like august is also another factor that might contribute to an increase in the number of complaints. By the way, take a look at shares of united and american. Those are the two next big Major Airlines that will be reporting earnings coming up next week. We get united monday night, we get american on thursday. It will be interesting to see whether or not they decide to announce further cutbacks in capacity, similar to yesterday when we down in atlanta with delta. Right. And stay with us. What is the personal report card . Personal report card is i didnt think i had flown in the last couple months. I have no point of view, other than to say, phil, that, you know, his remember we did that story at the beginning of the summer, it was maybe like july or about how terrible the lines were going to be at the airports . That never came to fruition. My only point is not to say that the airlines are good at landing planes on time. Its just to say that, you know, maybe its not as terrible as we tend to think it is all of the time. Well, evan, one thing to keep in mind, when we did those stories, you had had a number of airlines that ultimately ponied up a lot of cash to assist the tsa in terms of adding staffing. In other words, they were hiring people who could work outside of the tsa gates, jobs that the tsa officers usually do. That freed up those tsa officers to then actually work the stands, so it allowed more people to come through the stands at those Security Check points. So thats one factor of why we havent seen those long lines since that flurry of problems earlier in the year. Yeah, so arent you glad we i am glad. Keep it up, phil. Thank you, phil, for joining us. Phil lebeau with the latest Airline Report card. Eat pizza and tack os. Tell help save the economy. 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Due to overproduction, farmers have already dumped more than 43 million gallons of milk, just two years ago, lowfeed prices and high demand caused farmers to milk their cows dry but demand has begdwindled. The u. S. Da announced it will buy 20 million cheddar cheese. It has intervened. And the private sector helping out with Companies Like mcdonald, dominoes and even school calf tifeterias negotiat deals. The dari lobbying group was behind the move to use butter in the mcmuffin. They needed more callis in the egg mcmuffin. Double the amount. More delicious millions and millions of gallons of milk. Seems to be a better way. And we have people who are starving or dont have enough nutrition. It feels completely upside down. Part of the problem, overcapacity. They there are government subsidies and the support if they overproduce. The milk the dairy market has been manipulated by the government for decades and decades. Not just in this country, new zealand, canada, across europe. Its a phenomenon everywhere. They cant fix the milk market after decades and decades of government price supports. Undoing the supports. Thats my point. Its ridiculous we still have price supports in the in this case market, just as its ridiculous we haveth nor supports and things like that. And corn and fuel market. Exactly. Welcome to the u. S. Congress. Susan knows dont appear to be going anywhere. Will you please eat a little more cheese . Im doing my part. Do you consider that a. 08ic thing . No, nothing to do with patriotism. Nothing to do with patriotism. Patriotism would mean getting rid of all price supports in the corn market and the dairy market. Just to make a point. Lets have some milk. I hope you all have a lovely weekend. Come next week, we have more on the agenda. And theres the information if you need it, about how to help with this dairy glut. The milk lobby right the Dairy Farmers lobby, theyre theyre going to accepted you free choice tonight. A lot of free cheese. Thank you so much for joining us on closing bell. Fast money begins right now. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys times square, im melissa lee. Traders on the desk, tim seymour, karen finerman, guy adami. Earnings season under way. One surging next week. Well give you the name and how you can profit. And netflix gearing up for earnings monday after last quarters disaster. Is the story about to change on the stock . Traders weigh in. And later, martin shkreli, the most hated man in biotech spark another selloff in the space . Live to the courthouse. First we start with twitter. Shares