Transcripts For CNBC Closing Bell 20171010 : comparemela.com

analysts we've got the number within analyst in biotech here to give us his favorite two names in that space. >> yeah, the big cap and the small cap. in that order. >> you really have to know biotech. you really have to know. i'm looking forward to speaking with him. plus the man that won the paper called half man, half god, for his market-moving calls. the number one equity-linked strategy will join us coming up. think that's on his business card now we start, though, with the clock -- the stock powering the dow higher today, that would be walmart, shares surging 5% after some key announcements during its analyst day in bentonville, arkansas courtney reagan has some of the details from cnbc headquarters courtney >> reporter: hi there, bill. investors are pretty happy as you can see with walmart's forecast, two year $20 billion share buyback. walmart shares up more than 5% hitting highs not seen in more than 2 1/2 years so walmart reaffirming its current year forecast which brackets analyst expectations. also giving a forecast rapnge fo fiscal 2019. in line for consensus. neither are weak e either. there's some worry that could have been the case moves for walmart's strategy going forward is to get shoppers to come to the store and the website. the vast majority of walmart sales still come from the stores, but consumers that shop both stores and online spend two times as much with walmart so online grocery ordering for store pickup will be available in nearly twice as many stores by the end of next year. that's about half of all of its u.s. stores and that's important because the stores with the online grocery in-store pickup program have higher product availability and higher sales than stores that don't have it it's also bringing walmart new shoppers especially key as the grocery space really heats up. now expenses are under control, but walmart gives itself a little flexibility to spend where it helps serve shoppers better one fun expense cut, though, that walmart said today, shorter receipts literally the length of the physical receipt walmart says it's saving $7 million a year because they're shorter now. back over to you guys. >> i love -- you know. >> are you kidding any, they can save that much >> don't you -- >> that's what all the twitter folks say. >> yes >> it's probably a little bit of both, both the time and literally the physical paper sometimes those walmart receipts can be quite long as some of the other retailers can. >> wow. >> an expense they can save, figured out how to make them shorter. >> what was i reading today, only been two years since they announced the major initiative into e-commerce, look how much they accomplished. >> exactly that was in october of 2015. that analyst day went a little different than today that was a little bit of a surprise when they came through with the actual meeting and sort of went through some big investments they were making both in e-commerce, supply chain, remember the employee wages. that was in there, too and really by in large, while it shocked the street at the time, it's worked. i mean, look at the stock price here we're up 27% in 2 years. even then the experts and analysts looked at it and said, look, these are investments that need to be made, walmart has to do this in order to have a chance to catch up to amazon and compete there. it's about the future, right this battle is far from won. they fix the fundamentals but the innovation still needs to come forward mark lorie who runs walmart's e-commerce said, look, we've been able to run this side of the business like a startup, been able to move as fast as we would be able to if we were outside of walmart and so that's really key and the analysts like to hear that that walmart is sort of keeping control of the fundamentals of the business but got this really big innovation arm they're letting churn out new ideas. >> that's impressive that's for sure. >> so is that stock move courtney, thank you very much. courtney reagan on walmart let's turn our attention to p&g, procter & gamble and the largest proxy fight in historhi. spending an estimated $60 million to sway shareholders and peltz's bid to win a chair at the company. sarah, it's starting to feel like election night. >> reporter: yes, this is the corporate version of bush/gore, kelly, and procter & gamble remains confident and has declared victory in what is seen as a culmination of months long, costly and sometimes ugly proxy battle to keep one of its top shareholders, nelson peltz off the board. yes, it was very, very close we're told less than 1% margin i asked david taylor, chairman and ceo of procter & gamble, was he surprised by how tight it got? listen. >> i don't know what to expect other than we ought to make sure we do a great job conveying our message, conveying our strategy, being available to investors that's what we focused all the energy on, making sure people understand what the strategy is about the transformation, about the fact that we're touching every element of our business model to make it stronger. and to me, i felt if we did that well, we respect the wishes of the shareholders and preliminary proxy results are ones i'm pleased with. >> reporter: peltz is contesting it and refusing to concede defe defeat he says, though, either way, he feels like it was a win. listen. >> i think no matter what happens, i think david should put me on the board because even if they win, which i'm not sure they did, think of what a victory it is. think about it i mean, everybody but the current employees voted for us up and down the line >> reporter: i asked even if peltz does lose by a small amount, would taylor consider putting him on the board taylor said no so what's next we're told we'll get a final vote count within days that is from the company and as for p&g, taylor says he's eager to get back to business and executing this transformation which is several years in. and he feels he got enough of a confidence vote to continue to pursue, though he did, guys, say the message was loud and clear that he needs to move faster and show results >> i mean, that's it extending the election metmetapr this is hardly a mandate for the kus current management and board at p&g to win the embattled election by 0.4%, whatever it was. >> reporter: yes, absolutely, bill i think that was understood and communicated actually the board is wrapping up what seems like an hours-long meeting behind me. as for taylor, we did talk to him about the strategy he feels like they have done the heavy lifting. and that is, p&g used to be 200 brands they slimmed down to 65. he feels they're just starting to see results of that focusing on core brands like tide, like pampers diapers, and that we will continue to see results. i will say it also helps him to have a weaker dollar now which you'll start to see in the results. that strong dollar had been a headwind for such a global company for years. they are plowing part ining for. he did say he's taking lessons and will look to add more board members with consumer packaged goods experience something he heard from shareholders in this vote. many of whom did not side with management >> all right, sarah, thank you sara eisen back home in cincinnati >> looks lovely there. the backdrop with the -- what are they, little flower petals in the trees and the hair -- it was beautiful. >> springtime already? here's a question, is this becoming a stock picker's market again? a new report from credit suisse says that the one-knomonth impl correlation in the 50 largest u.s. stocks hit an all-time low last week of 9%. the average read going back to 1996 is 44%. with that in ind, joining our "closing bell" exchange, rene norse from urban beth manawealth management with us keith police here at post 9. our own rick santelli at the cme in chicago welcome back, rick and keith, this comes at a time when we learned that the number of etfs traded, etf trading, declined in the most recent period as well are we starting to see a little fatigue on index funds >> i think so. the market has been grinding ever so slowly, virtually moving sideways since june. you take a look at the broader market, even though we'll catch moments where they're overbought or oversold. we have the s&p and the dow slightly overbought at this point in time. the margins are so tight they really don't mean all that much. you've seen that in the actual movements. take a look at today the nasdaq is down and nvidia is hitting an all-time high if you look at different pockets, professionals whether they're professional money manager or traders, either chasing momentum or looking at the fundamentals and have to fix the right stocks as opposed to tracking to the overall index because the index is not giving them the alpha performance that they need. particularly in the professional money management area. yeah, i think we're transforming back hedge funds are reasserting themselves a little bit. people are getting bored with the etf just being another me, too, type of etf there's too in out there, in my opinion. they're not performing that well you see that in the index performance. >> rene, do you guys think it's a stock picker's market? if so, why do you think that is now? >> i absolutely do you know what, it's really interesting. i think the valuations are really, really high and there's better opportunities, particu r particularly outside the united states so just as an example, just finished doing a study where they took companies that had more than 50% of their sales outside of the united states versus those who had 50% or more in the united states so the q3 projections are that those companies who have more of a global footprint are going to show about a 7.5% increase in earnings, versus .1% decline for those companies who have a bigger footprint makes a difference in being able to pick out your stocks. i like boring right now. boring is some of the companies that might not have participated in this big surge that we've had but they pay a dividend. they're steady as you go so the at&ts, the verizons, the qualcomms, the chevrons of the world, i like a lot. >> there's something to be said for the quarterly dividend check, isn't there >> yes ent. >> hey, rick, let me turn you to another bit of news. today the rise of the euro as the catalan speaker fails to declare outright independence from spain, to clearly the -- at least the fx markets seeing a victory for the spanish government here, at least right now. >> reporter: yes at least right now and that plays right into what i was paying most attention to today, was the weak dollar index. yeah, i'm not sure how all that's going to occur, but as i listen to rene, there are definitely mathematical opportunities in many markets that seem to not only rival but to be much better than the u.s.' but then again, there's always two sides to every ledger and maybe what's going on with regard to spain is the other side of the ledger you know, there's a lot of discontent in europe and we -- we tend to forget some of these dynamics. i don't think they're going to be going away any time soon. there's still issues with the divorce proceedings between the uk, of course, and the eurozone. i think those are going to be ongoing issues to pay attention. to i was really disappointed at the failure last week of the dollar index to just jump over one technical level and even that technical level is 6% where it closed 2016. just to give everybody a little perspecti perspective, we had a guest on today, mr. paulson, talking about he thinks we could see 3 1/2, 3.25, in a ten-year note. we haven't closed at 3% or higher in six years. mid 2011 and in mid 2011, granted there was a cycle of the fed affecting markets, but at that time, the dollar index was below 80 so stlst there's a lot of ways this can turn out where the dollar isn't going to necessarily hurt multinationals with the great tightening that's going on with the fed. today is a case in point that the dollar is nobody's favorite at this point in 2017. >> keith, to end on this, it isn't like the market isn't moving at all. indexes keep hitting new high after new high after new high. >> gradually, y e. >> it might be slow but it seems like you can almost win either way unless you pick the stocks that aren't doing well in this environment. >> have to be in u.s. equities if you want to choose a product that's going to give can withdrew broad diversification across the entire index, you're pointing out the -- the problem is it's lurching forward progress professional money traders, need a higher performance, they can't defend upon that they're pulling away as rene is pointing out, they're looking for opportunities on both the long and short side. >> the problem with, it can be a pump and dump. can be this is the winner for 2017 or the loser. let's take a ge case if everyone's going to dump that because they don't want to show at the end of the year, but that's not fundamental investing. flip the calendar to 2018, you can see a reverse effect, right? >> you absolutely could. we're in an interesting time in the year where people will start doing tax loss selling right now, so you may see decent names who have had a nice run-up in 2017 but get pulled back a little bit again, president yourseut yourse shoes of the professional money manager. nearing the end of the year, have to show performance for clients and themselves they're going to be making decisions on that standpoint 2018 will be another year, maybe macro things come back into play right now, that's not the case. >> all right we have to go at this point, folks. thank you, all rene, good to see you again. keith, rick, thank you see you later. 46 minutes left in the trading session here and the dow, look at that, in record territory. the only one of the major averages in record tor territory. gain of 50 points right fl. coming up, r pfizer says it could be looking to spin off the health business and instead double down on prescription drugs. we'll bring you those details coming up. the number one biotech analyst will give us his two favorite names. later, we'll fake you live to barcelona where the leader of catalonia delivered a speech for the nation's push for independence from spain. we'll see what the latest is from there. we want to hear from you reach out to the show via twitter, facebook or e-mail. tell us your thoughts. you're watching cnbc, first in business worldwide ♪ ♪i'm living that yacht life, life, life top speed fifty knots life on the caribbean seas it's a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany♪ ♪watch this don't get mad (bell mnemonic) get e*trade and get invested looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. welcome back drug maker pfizer saying today that it's considering strategic alternatives for its multibillion dollar consumer health care business. >> we know what that means. >> strategic alternatives? >> yes. >> hope they're looking for strategic alternatives for me, that's for sure. anyway, what they're talking about for this business, it includes brands like chapstick and advil, pfizer shares up today. meg tirrell has much more from headquarters. >> reporter: i hope they're not considering strategic alternatives for you either, kelly. pfizer says today it plans to make a decision next year over whether it will spin off, sell or keep its $3.5 billion consumer health care unit which contains the world's best known health brands. ceo ian read said the unit is distinct enough from our core business, there's potential for its value to be more fully realized outside the company." continues a recent theme for pfizer and the rest of the pharmaceutical industry. many companies spinning out or selling so-called noncore businesses merck of course sold its consumer product units to bayer in 2014 for $14 billion. pfizer, itself, spun off its animal health business the year before pfizer had at one point been discussing splitting more broadly into two separate companies, one its faster growing newer medicines and the other, its established products business now with talk of a potential sale of the consumer unit, analysts suggested pfizer could use the proceeds to make an acquisition of its own with most speculation around bristol-myers skr squibb as the target most expect pfizer to wait for certainty around tax reform before doing such a big deal no shortage of potential pool of buyers of pfizer's consumer health care unit, analysts suggesting potentially gl glaxosmithkline and p&g and johnson & johnson as potential buyers. >> that process is just beginning. meg, thank you so much. meanwhile, institutional investor out with its 2017 all america research team list coming in as the number one biotech analyst, that's our next guest, from evercore isi he joins us right now. congratulations on the distinction again. thanks for joining us. >> thanks for having me. >> yuou know, this can be such minefield to pick individual biotech companies. is there a theme that you put together in that industry or do can you literally take it company by company to try to pick a stock >> i mean, look, there are points in time where issues like drug pricing were greatly weighing in on the space i don't think that's exactly the case right now so it's a bit more stock specific the way i see it. >> yes. >> what are those stocks, umer, to begin with, i think allergan is a top pick here why is that? >> sure. so back to your question, in terms of themes that are affecting this, tax reform, whether that happens, whether that causes m&a in the space, certain big binary catalysts in the space, for example, biogen might be heading toward a large event on alzheimer's for example. that's more like a 2019 event. to your question on allergan for a minute, then, allergan is one of those names which i think is trading effectively at a zero pipeline valuation by my math and i think when i compare allergan to the rest of large ex cap therapeutics universe that i cover, not only is the top line growth much more diversified, much less patent risk dependent, i thnk the quality of growth comes from the highest margin parts of the business. the setup is interesting, considering a trade that is zero pipeline, about to enter a very heavy phase of pipeline readouts starting in 2018. >> okay. now, so that was your large cap. the small cap, small to mid, is this other company we're listing here dermira. we're not familiar with this one. here's the specific question i have, talk about minefields that can happen in the biotech field. here's a company that has a phase 3 trial coming on an acne medication in the first quarter of next year you have to make a bet on whether you think that works or not, right >> that's exactly right. and a huge catalyst, it's due potentially in the next six months, a phase 3 trial in acne. we know acne's had a lot of setbacks including several over the past 12 to 18 months i will say this, one of the reasons i like this setup of derimra going into the big binary event, primarily if you look at the phase two results which we can use, draw certain conclusions off of, in the phase two results, the dermira medicine delivered on both different end points they want you to look at not only were they looking good on one of them, they were actually looking good on both. na for that reason, we tend to think they have a good shot going into the upcoming phase three and wasn't the case for the trials that failed. >> umer, congratulations, named number one biotech analyst on wall street. thanks for joining me today. >> thanks for having me. meantime we're going to head to the white house for a moment at the east room, the president welcomed the stanley cup champion pittsburgh penguins let's listen in for a moment. >> have all visited to the white house to celebrate their great victories. it's been an honor to have them all here now i want to proudly welcome the pittsburgh penguins owners, first of all, he's a friend of mine for a long time he's a great, great negotiator ron, how about negotiating some of our horrible trade deals that they've made over -- here's what i want i want to get him. oh, i would love to have ron burkle, and it's great to have you, ron i really mean that if you want to get involved in h negotiating nafta, i like it because we're renegotiating nafta, ron of course, he may not like that because maybe he's on the other side that's what's happening. that's why it's so hard to redo these trade deals. you're not on the other side of nafta, ron, are you? >> i am not. >> and one of the all-time greats, and by the way, a really great golfer, too, mario lemieux. super mario. he hits that ball a long way to general manager jim rutherford, and coach, mike sullivan i know you have a really big -- it's an early season matchup tomorrow night against the rival, washington capitals are they tough washington capitals? what do you think? are they tough so i want to thank you for coming today but for us, this is really a truly great group of world champions. that's what they are they're world champions. we have to start with somebody that i've been watching for a long time because i saw him when he was just about as young as you can get going into the nhl sidney crosby. where's sidney this guy man, can you play. sidney, do you know how to win or what? look at him, he's shy. do you know how to win or what great. great job. what a job you've done 44 goals last season 89 points in all and once again, the recipient of the conn smythe trophy and sidney, you built an incredible legacy in pittsburgh. congratulations. keep it going. fantastic. before it's all said and done, you might, frankly, you know, they're telling me this, has he outdone you yet, mario >> i don't know. he's getting close, isn't he >> three rings. >> you know, they have -- you night even outdo him i don't know, he's got to be awfully close, right well, mario is mario and sidney, congratulations. and sidney is not the only star that shined for the pens last year evgeni malkin. where is -- looks like he's a basketball player. big guy. strong, tough. served as the other half of the two-headed monster they call it the two-headed monster. that scored a combined total of 77 goals way to go. >> all right we'll step aside as the president continues to introduce members of the last season's stanley cup championship as the new hockey season gets under way there. >> of course, we're hoping he'll say something off the cuff about tax reform or one of many issues swirling around the white house. let's bring in eamon javers, for a little bit of a recap of what we've heard from the president so far today. >> reporter: yeah, kelly, you can really tell the president's enjoying himself there basking in some of the attention and some of the fun of an event like this, particularly when this is a president who is in the middle of a controversy with the national football league over whether or not all the athletes will stand for the national anthem. you don't see that debate in the national hockey league and the pittsburgh penguins today coming to the white house and the president making a point to note at the top that all of the folks on the team wanted to be here at the white house today. and just joking with mario lemieux about his golf score, sidney crosby about how amazing he is at hockey. the president just enjoying himself here this is a little bit of a respite so far from some of the controversies we've seen surrounding the president in terms of athletes. we'll see whether he makes any news later on in the event as we continue to monitor it >> all right yep. keep us posted, eamon, thank you very much. eamon javers at the white house. okay we know it's been a rough year for hollywood, but the box office is one last big hope for a comeback later this year we know what that is, right? >> i've seen this raw strength only once before it didn't scare me enough then it does now. >> tickets for "star wars: the last jedi" are now on sale after that new trailer debuted last night during "monday night football." fans are already buying up tickets in droves for a film with -- won't hit theaters until december 15th. "the last jedi" is the sequel to "force awakens" which, itself, just grossed over $2 billion worldwide. so disney, hollywood and movie theaters have a lot riding on the success of this film >> boy, do they ever >> i think it's a safe bet >> that's what they're thinking, too. >> lot of tickets bought already. speaking of looking for safe bets, apple has signed an amazing deal with steven spielberg, we use the word amazi amazing intentionally here. >> yes. >> josh lipton joins us with the details. josh >> reporter: that's right, kelly, apple is making more moves in original programming. sources confirming that the company has now signed a deal with steven spielberg's amblen partners and comcast nbc universal television production unit comcast is, of course, the parent company of this network the deal calls for ten episodes of spielberg show that ran in the '80s the budget will be roughly $5 million. spielberg could executively produce it apple is dedicating a lot of time and money to producing more original content company is budgeting around $1 billion to create original programming. it's already streaming shows like "planet of the apps" and "carpool karaoke" which received mixed reviews as well as documentaries about music icons like sean combs. apple has a lot of competition, too. netflix has a budget of $6 billion. amazon $4.5 billion. hulu $2.5 billion. how can you watch this new show when it airs it could be apple music or maybe itunes the way it gets distributed hasn't been decided yet, though, keep in mind, there's a big possible audience here with more than 1 billion iphones out there. guys, back to you. >> still it would have is to do better than the first time around, right? >> is what was it, 1985 or '86 when the original "amazing stories" came out and just the name, steven spielberg was enough to get them a two year guaranteed deal and let's just say it didn't live up to expectations at that time. so we'll see if it does this thing. >> it will live again. >> thanks, josh. see you later. amazing story. here's an amazing move on a stock. call it a cnbc bounce. shares of dermira up 2%. up more than that earlier. got to almost $29 a share. getting that pop after umer raffat we had on, the number one biotech analyst on wall street named it as a top pick in the small to mid-cap space on the expectations for the phase three trial of this acne medication. >> we're talking about a billion dollar -- >> i was just going to say, $1.2 billion market cap not exactly -- it's a small to mid-cap. >> smid. >> yeah, smid as we call it. feel so inside baseball when we say that coming up, we're going to speak with the number one ranked equity link strategist on wall street about the biggest risks to the market. and one thing he believes could lead to another financial crisis stay tuned like agriculture to feed the world. and energy to fuel its growth. real estate such as e-commerce warehouses. and private debt to finance transportation and infrastructure. building blocks of strategies to pursue consistent returns over time from over $120 billion dollars in real assets. partner with pgim. the global investment management businesses of prudential. we cut the price of trades to give investors even more value. and at $4.95, you can trade with a clear advantage. fidelity, where smarter investors will always be. time for a cnbc news update with now with sue herera. hey, sue. >> hello, bill, hello, kelly here's what's happening at this hour the death toll rising in california vice president pence visiting a state emergency response center in sacramento. announcing the administration's support in fighting the wildfires in that state. at least 15 people have now died with as many as 2,000 homes and businesses destroyed >> just a few moments ago, i informed governor brown that president trump has approved a major disaster declaration for the state of california. to assist in the response to wildfires that are impacting across the state french police using tear gas and batons to push back protesters throwing projectiles at a demonstration itn paris. several people were injured and the demonstrations were held nationwide facebook chief executive mark zuckerberg is being called a heartless billionaire. and is being accused of exploiting a disaster after live streaming a virtual reality cartoon of himself in hurricane-hit puerto rico. it's to demonstrate facebook spaces in the video zuckerberg says one of the thing that's really magical about virtual reality is that you can get the feeling that you're really in a particular place that is the news update, guys. i will send it back downtown to you. >> sue, thank you. see you later. thank you very much, sue herera. coming up next, we'll have a live report on the latest developments in catalonia's independence movement. and how overseas markets are reacting stay with us we'll be right back. ( ♪ ) whoo! ( ♪ ) woman: class, let's turn to page 136, recessive traits skip generations. ( ♪ ) molly: i reprogrammed the robots to do the inspection. it's running much faster now. see? it's amazing, molly. thank you. ( ♪ ) thank you. well, it'sonce again.eason >>yeah. lot of tech companies are reporting today. and, how's it looking? >>i don't know. there's so many opinions out there, it's hard to make sense of it all. well, victor, do you have something for him? >>check this out. td ameritrade aggregates thousands of earnings estimates into a single data point. that way you can keep your eyes on the big picture. >>huh. feel better? >>much better. yeah, me too. wow, you really did a number on this thing. >>sorry about that. that's alright. i got a box of 'em. thousands of opinions. one estimate. the earnings tool from td ameritrade. welcome back here's a look at the yeeuro popping higher as the leader of catalonia addressed spain's parliament willam marks is in barcelona with the latest there. >> reporter: thanks very much. the catalan leader, carles puigdemont asked for patience, asked for the assembly behind me to give him time to pursue international leads. saw thousands of people on the streets over the course of the day and hundreds of police officers outside the building. when he spoke, the entire chamber turned silent. he said we're not criminaling, not crazy, not staging a coup, we're normal people asking to vote and asking for dialogue in agreement with the spanish government he said he has nothing against the people of spain. he asked for international mediation. whether that happens or not is is not clear not clear what the government response is going to be to this, whether they will, indeed, suspend catalonian autonomy, send in the army and take charge of this assembly behind me right now it sounds like the catalans looking for mediation in this process. >> very interesting. thank you. joining us tonight from barcelona. you know, this reminds me of what labor unions will do before they begin negotiations on a new contract with management they will sometimes go to the workforce and ask for a strike vote and then if it's a positive, they vote to strike, then they take that and use that as leverage in negotiations and that seems to be what this strategy is, whether that was the intent to begin with -- >> or congress sometimes does that they put up these votes. they know they have no chance of passing. it's a way of showing support. >> exactly but i think what's clear is barcelona is not willing to negotiate on this. so we'll see >> yes >> that's -- >> i'm surprised -- euro is popping this afternoon, a sigh of relief there. but a lot remains to be decided with 20 minute to go. and the dow is in record territory right now. we're up almost 50 points at the moment the other major averages are also higher. small business optimism is falling. in fact, it fell to its lowest level since the election up next, what is on the minds of main street? we'll find out. and more charges today against former movie mogul harvey weinstein even though he was ousted from his company, more accusations have cast the future of that studio in doubt. ahead, management expert jeffrey simonfe wil simonfeld offers his prognosis stay with us ♪ say good-bye my baby ♪ say good-bye to hollywood dow higher, closing -- trading in record territory with the s&p, the nasdaq, and russell also with modest gains so far today. let's check some other movers for this tuesday so far nvidia unveiling today the first computer chips designed for developing fully autonomous robo taxis. the new system is code named pegas pegasus. it will help create a new class of cars that can operate without a steering wheel, pedals or mirrors. you won't find me in one of those. but i digress. the stock up 2% as a result. and apache sinking today after the company lowered production guidance for the third and fourth quarter of this year. the energy company cites the impact of hurricane harvey for the revision apache trading down more than 7% right now, kelly >> all right how about small business optimism falling to the lowest levels since the election kate rodgers has that story. kate >> reporter: hey there, kelly, you said it, main street sentiment at its lowest level since president trump's win in november dropping 2.3 point in august to 103. biggest drags on the index this month, small businessowners expecting better sales that fell 12 points. those who believe now is a good time to expand, that fell by ten points other areas that took a hit included those who expect better business conditions and those who planned to make capital expenditures now we did see major business impacts in hurricane-affected states like texas and florida, of course, bullet the conservative lobbying group pointed out this sentiment on sales and business conditions was consistent acros the country for the month. small businessowners are eagerly waiting tax and health care reform fixes from washington, d.c., and the nfib's president and ceo said in a release, "small businessowners still expect policy changes from washington on health care and taxes and while they don't know what those changes will look like, they expect them to be an improvement. but the frothy expectations they've had in the previous few months clearly slipped in september. one bright spot was in inventory plans which actually increased by five points signaling businessowners are anticipating a strong fourth quarter and of course despite this month's drop, the index is still well above its historical average of 98, guys back over to you. >> all right kate, thank you. >> thanks, kate. >> kate rorogers 14 minutes to go optimism in the market, dow up 55 points at the moment. s&p, bill, as you mentioned, slight gains for everybody transports up breaking a five day loss streak there. the nasdaq had been up for nine days and down yesterday. we're back up today. a lot of strength across the board. >> utilities among the strongest sectors in today's session as well today. when we come back, we'll meet institutional investor's number one equity link strategist cond out what he says uld cause the next financial crisis, though when we come back. sarah: every year we take a remember nashville? both: kimchi bbq! amazing honky-tonk! i can't believe you got us tickets! i did. i didn't pay for anything. (sigh) you never do. send me what i owe. i've got it. i mean, you did find money to buy those boots. (alert beep) are you serious? is that why you don't like them? those boots could make a unicorn cry. yeah! tears of joy. (groan) pay back a friend day is october 17th. get the bank of america mobile banking app today. ♪fly ♪e to the moon ♪and let me play amon-- (ding) (bell mnemonic) art cashin just stopped by and told us the market on close orders will probably be a nonevent in his words. a buy side bias to the tune of $150 million but we're continuing to record territory here the dow, highs for the session right now with a gain of about 60 points. speaking of which, it was ten years ago when the s&p hit its peak before the financial crisis october 9th, 2007, closed at a record and would be the last until march of 2013. as we all know, major indexes are back to all-time highs and our next guest sees parallels today to that time. >> joining us is marko kolanovic from j prp morgan, just named number one investor, welcome to you, and congratulations. >> i guess he -- marko, can you hear us? i know you're having some difficulties hearing us. can you hear us okay >> i can hear you. i can hear you. >> okay. what parallels from back ten years ago do you see today that concern you right now as far as the financial markets go >> so there's some parallels in terms of valuation, market valuations there's some parallels also that we are coming out of the period of low volatility and low rates. this time around, i do think we also have some concerns abou market liquidity so, so basically we are thinking that next year, investors should be a bit careful this year, we're quite positive. you know, we have earnings ahead of us which we think are going to be pretty good. you know, we have a promise of the tax reform we're overall positive we're watching for some warning signs for the next year. >> marko, what does the liquidity crisis look like how is that similar or different to the financial crisis? >> so financial crisis, we had the problem of leverage, we had the problem of financial institutions holding lot of leverage, clients holding a lot of leverage. some illiquid products in a credit space right now leverage is generally lower. what i'm a little bit concerned is basically once, when the central banks start pulling back this unprecedented accommodation, some sort of cracks in liquidity could show up you know, be it from sort of private assets, be it from sort of systemic strategies, quan strategies, lack of sort of value investor or kind of like increase in active management. i think that could expose some cracks in liquidity. >> you know, there was some fear a year or two ago that liquidity crisis would happen mostly in the bond market and for the very reason you're talking about. is that where you're worried the most or are you worried about all markets? >> i think across the markets so i think you have basically in equity markets you have, again, some crowding in systemic strategies that once when the volatility increases, they will -- these strategies will kind of -- so i think you have in a public equity markets, you have also in the private, bigger private markets which tend to be less liquid and also i think in the credit markets you do have some signs it's more across different asset classes, not sort of fixed income >> marko, what about bitcoin strikes me that there's very few ways to analyze it fundamentally. what do you think of the price movement from here >> sorry, i have a problem hearing, can you repeat? >> sure, what do you think of bitcoin from here? >> oh. we see generally cry cryptocurrencies of a bit of a sign -- you have a large number of initial coin offerings. some of them questionable, you know, more or less so we see it as a bit of sign of sort of sauccess like trust in sort of the technology world basically. revolutionize things and deva e devaluations can be put without real value -- so we look at it a bit cautiously, i have to say. >> all right is your skepticism just about bitcoin or about cryptocurrencies overall >> overall cryptocurrencies. certainly there are ones which are bigger, more established, ones that the are not. the question is where do you draw the line? if you have bad bplayers, how d you regulate which ones are good and not? it answers a lot of questions. not about one in particular, more about the whole market. . >> all right we did it. you heard us enough. marko, thank you for joining us. >> thank you very much. >> and congrats. >> thank you. >> if marko kolanovic from jp morgan, number one equity linked strategist named by -- what? >> still not 100% sure what that means. >> about what? equity linked -- >> talking about -- >> things that are linked to the equity. >> focused on equities. >> he knows. as long as he knows, we're okay. i have the closing countdown coming up in a moment here. yes. then after the bell, walmart announcing a $20 billion stock buyback today. why the former ceo of walmart u.s. says that is not the best use of their capital stay with us ♪ ♪i'm living that yacht life, life, life top speed fifty knots life on the caribbean seas it's a champagne and models potpourri on my yacht made of cuban mahogany, gany, gany, gany♪ ♪watch this don't get mad (bell mnemonic) get e*trade and get invested coming up in the last two minutes of trade here, here we go again, the dow, modest gain but enough for a new all-time high again and the other major averages are higher but they're not at all-time highs so we're now about 177 points away from dow 23,000 with us now, where we're closing on this particular day, the best performing component inside the dow today was walmart by far announcing that $20 billion buyback over two-year period that pushed the stock up about 5% and procter & gamble was trading places with united health being the worst performer in the dow today. but p&g as we all know, they are claiming they won the proxy battle with nelson peltz although they are still counting balance. that stock was down more than 1% it's come back a bit as we head toward the close the dollar index lower it's more about the euro going higher on word late this afternoon that the speaker of the catalan province decided not to declare outright independence from spain rather he wants to suspend the process right now and seek talks with the spanish government as they still decide whether they can achieve some independence of some kind. oil had a pretty good day, bob pisa pisani, gain of 2% best gain in about two weeks as it goes well above $50 a barrel here. >> that's one of the reasons we keep hitting new high. got this rotation. the oil stocks start outperforming and things go well with walmart on this buyback, i want to point out, walmart has bought back about 30% of its stock in the last 15 years with this $20 billion announcement, that's another 8%. 38%. think about it that means your earnings are improved by 38%. ibm has done this, more than 40%. exxon has done it more than 40%. i call them buyback monsters. >> and we're finishing at the high of the day. i lost count on how many record highs we've had for the dow in many 2017. but it's another one stay tuned now for the second hour of "the closing bell" with kelly evans and and. see you tomorrow, kell thank you, bill. welcome to "the closing bell," everybody, i'm kelly evans and we're finishing today on wall street with the dow jones industrial average at another record high on a 70-point gain on the bell. that was a big pop gives us a gain, 22,831. we're just 170 points way i from dow 23,000 with this move today. how about the s&p 500? up .25%. six points to 2,550 today. the nasdaq up .10 to 6,587 russell 2000 up 4 1/2 points, 1, 1,508 for the russell. lot of movers to talk about, lot more about the markets to get to and several dow components like walmart powering that move higher on heel of a $20 billion buyback announced today. former ceo of walmart u.s. is going to join us and why he doesn't think that buyback is the best use of capital for that company. look at walmart up 4.5% today. joining me now to talk about this, dani hughes, ceo of divine asset management on set next to me next to her, james, president of bianco research. welcome to you both, guys, appreciate you joining me. let's begin with the market. dow, s&p and nasdaq setting record intraday highs ef s earl. today's big winner in the dow, walmart as we mentioned. biggest loser, united health, down less than 1%. over in the s&p, big winner, americanairlines those airlines have been on a tear lately. biggest loser, apache down more than 7%. we spoke about that earlier. also helping stocks today, president trump saying his feud with senator bob corker will not impact his plans for tax reform going forward. dani, you take that at face value? >> it's hard to take anything like that at face value. i think that the bully politics that has been going on has been working for trump, and his administration, and i think that things have at least been moving forward, albeit precariously. >> right, that's how the market feels, jim, too. goldman sachs think a 65% chance the tax reform gets through. they say that would put the s&p at 2,610 up from 2,550 what do you think. >> i'd say 65% is right. this is a signature thing trump wants, wants tax reform more than anything else if he doesn't get it, it's a big blow to his administration, a la health care. he'll move heaven and earth. whether he can move heaven and earth, he'll try. >> heaven and earth could include some senators. with the spat with corker, does he want this to come down to rand paul? more important than ever that trump gets a couple democrats onboard in order to get the legislation through. >> we've seen him do that before to try to move mountains by getting the other side to take up his cause and frankly, corporations, investors, many people want tax reform we wanted it for a very long time this in some way, shape or form has to happen. it's just exactly how it's going to happen and when it's going to happen is the question >> and it comes, jim, as we know, that steve bannon may be backing more than a dozen candidates once we start heading into midterm season if that's the case, it could fragment the gop a little bit further. i don't know what it helps or hurts the case for tax reform. do you think it has to get done end of this year, early next year if it's going to get done at all >> i think so. also don't forget about the math of the senate, too there's 33 seats up for -- 25 of them are democrat seats. only eight republican seats are coming up. so when bannon says he's going to back a dozen candidates, he's going to be backing candidates against democrats more than he's going to be backing candidates against republicans. so, yeah, that's got to get done right now before all the politics gets in the way. >> all right that's the big picture stuff going back to the markets today, airline stocks were higher americanairlines and united both raised guidance for their third quarter earnings that's despite recent hurricanes causing thousands of cancelations look at the moves. american and united up nearly 5% today. and delta expected to release n earnings tomorrow morning. delta and southwest also higher. dani, it's interesting, we've seen the airlines move quite a lot -- i should say day to day they've been down big lately, been up big. what do you think about them here >> it's a long sordid tale i think what's interesting as parker has said, i don't think we're ever going to lose money again. you can bet, kelly, that's not going to happen. but, you know, oil prices have come down. they're down 50% from where they were when airlines lost a ton of money. there's been a lot of labor costs that haven't been baked into this. pension funds are very underfunded especially at americanairlines to the tune of 42%. so there's a lot of things that are playing here and that could move and could affect the airlines in a negative way. >> so it doesn't sound to any like you're -- this is a place where you guys would be -- where you would invest here, is that right? >> we don't own any airlines at this time. >> jim, what about you by the way, the move in the airlines helped push transports higher for the first day in five, i think. >> it has. it's been a good start to earnings season. earnings season valely unfolding right now. the expectations were 4% earnings growth after two 10% quarters the dollar is weaker and some other things were supposed to depress it now come the airlines and say, hey, things are a lot better than we think, so at least we're getting it started on the right point. now, you know, thursday could come and it could all be different. right now it's getting going in the right direction. >> and keep in mind the big three's profits actually come from international travel, not from domestic travel, so should something happen internationally, to go against that -- >> yeah. >> -- it's going to affect them pretty dramatically. >> it's interesting, take it as good signs for the u.s. economy. move on to procter & gamble down 1% today after shareholders voted on whether to give trian partner nelson peltz a seat on the board. the shareholders did vote against giving him that seat but peltz says he's waiting until all the votes are counted. here's what he had to say about why the company did not want him on the board. >> they did not want me. you know why >> why >> three-letter word ego. >> ego >> ego okay i threatened the hallowed walls of that boardroom and how dare i do that? and the fact is that the board needs refreshment. i didn't even call for that. the board needs to really look honestly and openly and say, what's wrong with this picture >> that was nelson peltz speaking with sara eisen earlier today. the biggest activist battle ever engaged, dani, over $200 billion market cap most expensive one spent $60 million on both sides. what do you make of it all >> it's a big ego trip i do think, and all fairness, i do think p&g is kind of backwards in the way they've been thinking about how to attack their business and they've been that wayfor some time i mean, you got to look at some of their competitors like colgate and there's a couple other internationally that are actually making a lot more acquisitions, thinking more strategically outside the box for up and coming companies that they're bringing into their fold and p&g has not had a great acquisitive history, gillette being a big -- >> they're losing a lot of market and a lot of market in different areas. jim, keith bliss earlier suggested the great conglomerate breakup has begun. p&g's case, putting aside what nelson peltz's plans have been for the moment, he's still woken their board up pfizer reviewing a spinoff, sale of its consumer health care business honeywell talking about spinning out two businesses into separate companies. what does that say to you? >> capitalism is about creative destruction, it's about taking organi organisms, restructuring them, e evolving them into what they need to. i'm a fan of nelson peltz, the activist movement. in the long run, it helps companies go where they need to go p&g needs rethinking or repurposing over there i would hope that they'd see this as a sign, not oh, we won, he's pushed off, we don't need to change anything they do need to change and i hope that will get them where they need to g. >> yeah, i think boards are on the chopping block right now everywhere for a lot of different reasons and most of all because they're the ones that investors have to look at when it comes to returns to their shareholders. >> right would you guys -- when you look at the consumer staples space or when we talk about those big companies, i mean, does that leave you invested or on the sidelines? >> to some extent it leafs us invested but in smaller companies that are in the space and i also think when i think consumer, i think women and i think that when you've got a consumer-driven company, you got to really be surrounded by a lot of female voices because that's who your customer is and i don't think that's the case here with p&g. >> that's an interesting point nelson peltz on the board wouldn't solve that problem. >> most certainly would not. anyway, the euro moving higher today after the catalan leader asked parliament to suspend results from the country's independence referendum saying the current relationship between catalonia and spain is unsustainable and the two countries should explore international mediation. jim, the euro's up on this news seeming to take this as a good sign, didn't come out and saying we're definitely doing independence full stop thi this left the door open to that still. how much is a danger of that >> it is a danger. the good news is, go back ten days ago what did we have we had a vote, had what we would call s.w.a.t. teams going in and trying to suppress the vote. >> oh, yeah. >> we've taken a step back from a bloody insurrection. okay good we're going to talk like adults right now but going to talk about secession so that's not off the table. that's why i think the euro rallied a little bit but it's down from 120 where it was a couple yeek weeks ago. i think the tide has turned for the euro the dollar is going to continue to strengthen. i think through the balance of the year this is an up bounce in a down market for the euro. >> if the dollar is headed back up, dani, that will be a headwind for corporate earnings. >> it will, most certainly going back to the euro and particularly to spain, actually was up, like, 20% is now only up 8.3% buybacks for the year. but i am very concerned because whenever you have any kind of unrest in that kind of scale, it tends to blood over into international markets, and certainly we have a lot of things to worry about here in the u.s. as well on that regard. >> yes, california could leave any day now. i'm kidding. >> yes hopefully not. >> i'm kidding. >> not on this -- >> texas first texas first. >> texas first here's a little stat from today that caught our attention. how about alibaba could soon surpass amazon's market cap. the chinese e-commerce giant inching closer to amazon's cap of $470 billion. came within a billion or two in trade earlier today. jim, this is -- i mean, the performance of these chinese internet companies this year has been quite incredible. >> the performance of internet companies, period, has been pretty incredible. >> not just amazon. >> yeah. exactly. amazon is on a course for world domination and about the only company that might stop them right now is alibaba. >> do you think investors are taking that threat seriously enough, though can amazon and alley baibaba bon >> for the time being, i think it can right now they got a lot of traditional companies they can continue to disrupt before they have to turn their fire on each other so they can keep going a big world right now. amazon's got the u.s., maybe europe and alibaba's got the east with china. so they -- it's a ways off before they have to worry about each other. >> dani, amazon? >> amazon is a little bit -- it's structured differently. alibaba is a larger company, they kind of encompass the ebay and paypal, everything like that, amazon does not. >> fair point. >> however, i think of course they can co-exist. you know, you've got goldman sachs and morgan stanley and citi all co-existing in the world, too i do think that even though you have so many choices on a platform like amazon, to be able to compare on an alibaba when you're sitting home in your slippers is a good thing >> i was just going to say that going back to alibaba's ipo reminds me, jim, of other companies that struggled early out of the gate. they came out, think they did okay on day one. then for the next couple months the market did not trade it very kindly all of a sudden this year, it's taken off. is this a sustainable or momentum move as far as you are concerned? >> i think it's more sustainable. i think the market has come around to the idea what these companies are, whether amazon or alibaba or facebook are platforms, platforms for disruption this is something real that they see. they've got a lot of places that they can go right now. just as an example in the u.s., the six big tech companies, almost 30% of the returns in the stock market this year >> wow. >> one of the most concentrated years we've ever seen for just six companies accounting for almost a third of the s&p 500. >> it's pretty amazing. let's check in on someone outside of the bubble now, barracuda network earnings are out this afternoon let's get to josh lipton with the numbers. >> reporter: barracuda networks reporting eps of 17 cents, in line with expectations revenue up 7% to 94.3 million. analysts were looking for 93. 3 million. looking for the release, kelly, gross billings, 108.5 billion. billings for core products up 22% to 70.the million. remember, this is a company that sells security services to businesses mostly e-mail security number of active subscribers they say up 17% to 348,000 heading into print, the stock was up 20% year to date. see disappointment clearly in the after hours. this conference call starts at 4:30 eastern kelly, back to you >> all right josh, thank. you. anything you would add with barracuda, down 7% rite no u. >> a lot of the companies is been under pressure. one that we hold -- >> palo alto. >> has been under pressure for some time. i do think that they'll have their comeuppance and do very well i don't like to see a stock off that much. >> wouldn't you think -- i mean, i know from the outside, it would seem with all the high-profile hacks we've had this year that cyber security companies are the way to go but they have been lagging why do you think that is >> they have been lacking i think because now it's become kind of ubiquitous i think we need maybe a big huge one again, unfortunately, for something like that to happen. and i think maybe that somebody needs to, like a big, big corporation has to get behind cyber security systems in a very large way. we haven't seen that at all. >> all right guys, thank you very much. >> thank you. >> appreciate it dani hughes, jim, joining us this afternoon walmart unveiling that new $20 billion stock buyback program. up next, we will debate whether it's the best use of capital for that retailer. plus amazon already delivers products to your home. now the online retail giant wants to actually deliver them inside your home and into the trunk of your car. our "fast take" on what could be the future of delivery is coming up. and we always want to hear from you contact the show and send uryo thoughts to us via facebook, twitter, or e-mail you're watching cnbc, first in business worldwide building a website in under an hour is easy with gocentral... ...from godaddy! in fact, 68% of people who have built their... ...website using gocentral, did it in under an hour, and you can too. build a better website - in under an hour. with gocentral from godaddy. welcome back it was a huge day for walmart. helped push the dow to a record close today. walmart was up 4.5% after the big box retailer anoubs nounnou0 billion share buyback. project ed sales will grow joining us, david trainor, ceo of new constructs at post 9. bill simon, former president and ceo of walmart u.s guys, appreciate you being here. i love this because david, you're bearish on everything but you love walmart mr. simon, our corporate exec, doesn't like this move so much tell us why you think a $20 billion corporate buyback is the right thing for walmart? >> the stock is cheap. priced as if profits will permanently decline by 30% making real money. $15 billion in free cash flow last year. it's a very profitable business. they're poised to do really well when your stock is cheap, it's okay to -- >> mr. simon, why do you think sis is not the right thing to do with their money right now >> i think walmart is doing a lot of things right. they've always been a cash-generating monster. they've always had a pretty robust buyback program what i don't really like about it is really two things. it sort of suggests to me that their growth options are becoming more limited. most companies look for the opportunity to grow with their excess cash before they return it and while clearly the investing community cheered what they did today and they should, it concerns me a little bit that they don't see the growth opportunities. they reduced the store growth and maybe rightly so their top line really peaked in 2015 at $482 billion and their operating income peaked in 2015 at about $28.5 billion now it's $23 billion i'd like to see them spend that cash, that capital, on growth u opportunities moving forward. >> david >> second issue for me -- >> go ahead, bill. >> the ownership of the walton family is over 50% now the more they buy back, the bigger that gets they're great people but it sort of puts minority shareholders in a difficult place. >> i think what we're seeing with spending is a shift to a more modern enterprise where most the spending comes from the income statement and not the balance sheet so they're spending clearly a lot on e-commerce and their e-commerce business is doing great. i don't know if it's a bad allocation of capital. they're doing well look, amazon confirmed that bricks and mortars is important, when they bought whole foods and who's got the best brick and mortar distribution system in the world? walmart. hard to say it's abad allocation capital decision when they're making as much money as they are. >> bill, what would you say to that >> i'm not saying it's a bad allocation, brett biggs, their cfo, is world class. they know that they're doing i'm looking at it as an operator and business leader. there's got to be top line growth here in the company they've been flat for several years. e-commerce has been growing for sure, but there's been a shift from the stores into the digital so it's not really growth, and it's more of a defensive play as they've been building online grocery pickup to protect their grocery business and they need to do that the top line needs to start moving >> david h. >> when the top line is as big as walmart's is, you might say it's probably smart sometimes to hold off on spending an things that may not generate a return i agree, bill's -- ultimately it's right, you'd always rather invest in growing the business if you have that opportunity and buying back shares is potentially a signal that they don't as much, but at least they're being smart with their capital. >> so you're conceding the point which is a big deal. two years ago as we talked about, walmart came out and said we want to own e-commerce, going to be in this space, spent massively to do so would you rather see them come out with something gangbusters like that again here or embrace the buyback as perhaps an acknowledge the that that reality is different today >> i think they're smarter about spending, throwing a lot of money at a problem doesn't always solve it. when they threw a lot of money, didn't work out so well. at the end of the day, it's better to be smart about allocating money than it is to allocate a bunch. >> what do you think a stock's % higher it's trading at a 30% discount to its no growth value, or in other words the stock price is implying a permanent 30% decline in profits. >> bill, if there is more than a 30% upside, which is kind of the case that david's suggesting, how big is that upside that you see as an operator if they were to invest in this kmcapital differently? >> well, i mean, just think about it the value weight that ation thes is astronomical. the one walmart has is tiny. as these two approach each other in strategies, amazon is buying brick and mortar i'd rather be amazon as these come together. there's a growth upside and has to be realized in growth i would have loved to have seen them have the opportunities to go after by spending this $20 billion. just to be clear, their buyback program has always been around $15 billion if not mistaken every couple years this is a stepup but it's not a $20 billion stepup, it's a $5 billion stepup from where they've been so i like what they're doing i like what company's doing. i have a lot of confidence in them i would really start focusing on growth if i were them. >> all right gentlemen, thank you very much. >> thank you >> david and bill joining us to talk some walmart today. one of the biggest best movers in the dow, up 4.5% pretty amazing apple is, meanwhile, everywhere. if you don't think so, stick around for the results of cnbc's all-america economic survey. the data shows that two-therirds of the public have an apple product in their household that's not even the most astonishing number we'll tell you about that coming up. also, blue apron has lost half its value since going public at the end of june. it's not discouraging another meal delivery service from planning an ipo, though. we'll have details in today's "fast take." today's "closing word" is king the reason why is later. "closing bell" will be right back looking from a fresh perspective can make all the difference. it can provide what we call an unlock: a realization that often reveals a better path forward. at wells fargo, it's our expertise in finding this kind of insight that has lead us to become one of the largest investment and wealth management firms in the country. discover how we can help find your unlock. not rebalancing your portfolio. pursuing your passion, not reacting to market downturns. focused on what you love, not how your money will last through retirement. let us help you with those decisions, and get on with your life. we make it easier to plan for retirement with day one target date funds from prudential. look forward to your 401k plan. people don't invest in stocks and bonds. they don't invest in alternatives or municipal strategies. what people really invest in is what they hope to get out of life. but helping them get there means you can't approach investing from just one point of view. because it's only when you collaborate and cross-pollinate many points of view that something wonderful can happen. those people might just get what they want out of life. or they could get even more. it is time now for our "fast take" today, we're joined by mr. wonderful, himself, kevin o'leary for today's edition. kevin, thanks for being here. >> great to be here. thank you. >> we begin with amazon. we always begin with amazon. it's always up to something. anyway, today it's partnering with a smart license plate maker called fhrame with a ph. makes a box that fits around your license plate with keys to your car that can be unlocked with a smartphone. amazon is working on a smart doorbell device for one-time access to your home according to cnbc.com kevin, what do you make of all this >> interesting to see this deal today. in this season of "shark tank" we've seen multiple applications that do the same thing this is clearly a problem in h everywhere in suburban america when you get a package left on your front door from amazon, particularly small ones filled with consumer electronics, very often, you come home and it's gone and so the company's trying to solve this problem lots of other entrepreneurs are trying to solve it as well there's all kinds of ideas it this is a good one. it's interesting it assumes your car is somewhere outside where they can get access to it but it's a huge problem. the company knows it people are getting all of their stuff stolen it's becoming a -- >> would you -- >> -- almost a -- it's got to get solved one way or another. >> would you let them deliver to your car, would you keep that box with the keys around the license plate, let smartphone access it? >> i think it's an interim solution, frankly, most smartcars are going to allow you to access the door or the trunk or the engine compartment, if it's a tesla, two areas you can put it into inside the car or the front. it's a good thing for amazon to start exploring this because it basically is a vessel that's near your home, you know where it is, maybe it's even at work and you basically give it the gps location and the license plate. and bingo, you find your package in the back. i like the idea. i'm not sure there's much opportunity for other entrepreneurs. amazon can solve this themselves this frame thing is an interim issue. in ten years, five years, four years, cars will have this capability, anyway >> it's crazy to think about moving right along, another meal kit ipo, this one's hello fresh. it plans to raise about $350 million. wh comes two years after the company last tried to go public but pulled it. kevin, you're a plated investor. it hasn't been a great year for meal kits with blue apron's stock falling. how do you feel about this new competition? >> personal opinion i'm giving you as to why it's coming into the plarkt blue apron has been a disaster as an ipo. two reasons. number one is amazon buying whole foods and then all of a sudden, albertson's buying plated which i was an investor by the way, that was the largest exit in "shark tank" history $300 million we're all happy about it the model changed for fresh, changed for blue apron for two reasons. when you have a grocer associated with your model, your customer acquisition costs go way down that's what's been killing these models is the value. the cost of acquiring a customer is much higher than their lifetime value which is why fresh, in my opinion, is taking this public in europe to getsome money out for the investors. they don't care what price they're going to get for it. again, it's a personal opinion get me out because i don't think fresh is going to get a domestic investor in terms of a grocer. >> is all right. good bye fresh, i guess we should call it. next, would you be likely to invest in an ipo if a celebrity was pitching it to you that's the bet some company are raising. that's the bet some companies are making when raising money through regulation a-plus. five companies have used the strategy to list on major exchanges. according to the "journal," four trading below their ipo price. kevin, is star power overrated >> well, clearly in the ipo market this is a test that isn't big enough yet only five deals and four of them are under water. that's bad ask yourself this, kelly, is the celebrity a real investor? do they actually take money and buy equity in the company? are they using the product because celebrity endorsements, you find in every consumer category, and now we see it in stock. it hasn't worked yet i always ask that question if i'm an investor or user of the consumer product or the company, itself did kevin o'leary buy stock in the company or is he just trying to show the stock to me? i think that's a very important question. >> i think you're right. >> i'd never do that unless i own the company. all right. finally today going after jamie dimon, cryptocurrency company took out this ad in the "wall street journal" calling out jp morgan ceo jamie dimon who famously said he'd fire anyone at the bank for trading bitcoin. kevin, before you weigh in, mike santoli was so fired up he sent us a video of his "fast take." let's listen >> i don't really think they're going to be reaching their core audience members by taking out a -- >> i don't think -- can't quite make it out. anyway, what he was partly saying, kevin, was it's interesting all these companies keep going to the newspaper to advertise about their 21st century technology platforms, don't you think? >> it's brilliant. i think taking jamie's comments which basically said that this whole bitcoin phenomenon was a fraud, and, you know, it did effect the value for a little while. back up over 4,000 but they're basically trying to get a viral social media event to occur by doing this it's brilliant to do it. jamie set himself up for this. he basically put it out there, became a global phenomenon on twitter and now they're using it in the paper to get more focus on to this blockchain, by the way, is a good audit system. i don't believe yet in it cryptocurrencies because i always asked one simple question, if it's not in my account tomorrow morning, who do i call is there an 800 number who cares about it that's who i'm wondering about. >> is it so cheap to post in these papers you can do it to go viral. thanks for joining us today. >> thank you, bye-bye. >> congrats on plated. catch mr. wonderful, himself, on fresh episodes of "shark tank" starting cnbc. time for a news update with sue herera. >> hello, kelly, hello, everybody. here's what's happening at this hour leader of catalonia said his region earned the right to independence from spain but immediately suspended the process to allow talks with the central government in madrid however, spain's prime minister rejected any dialogue with catalan separatists unless they abandon their plans for secession. a texas tech university student confessed to killing a campus police officer who had been booking him on a drug possession charge. hollis daniels iii telling detectives he had done something, quote, illogical and he was the one who shot the officer. six military men were honored during a special ceremony at camp ft. dodge in iowa senator chuck grassley handing out military medals to those who served and family members of veterans who are deceased. and one of my favorite stories of the day, a once lost leonardo da vinci painting the picture of jesus, it's the last da vinci painting in private hands. the work dates back to about 1500 it took six years to authentica authenticate it will be auctioned off next month in new york. it is being called a priceless find because there are only 15 or 16 da vincis known to still exist. >> walter isaacson book. it's cheaper sue, thank you very much. >> you got it. >> see you later sue herera. mass destruction is the only way to describe the wildfires that have ripped through northern california. we will go live to santa rosa for the economic impact those blazes have had when we come right back. success and failure walk d hand in hand along hollywood boulevard. harvey weinstein, despite his ouster on sexual harassment charges, his mini studioay m now meet failure the fate of the weinstein company coming up. listen up, heart disease. you too, unnecessary er visits. and hey, unmanaged depression, don't get too comfortable. we're talking to you, cost inefficiencies, and data without insights. and fragmented care, stop getting in the way of patient recovery and pay attention. every single one of you is on our list. at optum, we're partnering across the health system to tackle its biggest challenges. welcome back another record-setting day on wall street. the dow added 69 points on the bell that was a pop from where we were in the final hour of trade. walmart and boeing contributing the most dow closing at 22,830. that puts it within touching distance nearly up 23,000. the s&p 500 up .25%. 2,550. the nasdaq up to 6,587 the small cap russell up today to 1,508. at least 15 people have died and more than 1,500 businesses and homes destroyed from wildfires in california wine country. aditi row is in santa rosa with the very latest. aditi? >> reporter: hi, kelly, we spent the whole day in the santa rosa neighborhood, typically a gorgeous neighborhood overlooking the sonoma valley. right now smoke is covering it see what happens to the homes once worth up to $1 million. they have been razed to see the full extent of the damage, walk over this way it's hard to tell what's within the rubble everything has been destroyed. to such an extent. those two things were cars just empty shells of cars back there. it's not just neighborhoods, also businesses have been affected we took a drive throughout santa rosa we found a hilton hotel that was completely destroyed as well as a fountaingrove hotel, a local landmark in town a kmart store, mcdonald's. a lot of businesses, stores, even schools we're hearing were completely burned to the ground. that's not all, of course, and that brings us to the wineries which play such a critical role in this area the names are still come in but here are some big names we do know of as far as who's been affected by the wildfires. let's take a look. sonoma county, we know paradise ridge was affected, it has burned to the ground napa, signorello and white rock vineyards destroyed by the fire. come had damage, those include stags'leap, chimney hill by the way, tim cook tweeted out having solidarity with the people affected by the wildfire. writes "our thoughts are with bay area friends affected by the wildfire please stay safe." 90% of the harvest has already been completed they say, though, what has left is the cabernet grapes, those have thicker skins wine makers don't expect those grapes will be affected by these fire fires. kelly and bill, back to you. >> do we know anything about the cause of the fire or how it moved to quickly throughout this region >> reporter: the cause is under investigation. it's hard to tell in the wildfires. as far as why it moved to quickly, high winds, especially from sunday going into monday, kelly, those winds were really, really high. you know, just a case in point, we're working in san francisco, and that's 60 miles south of the area and we've been outside on early monday morning and we could see thick smoke and can smell it in the skies. it traveled fast . >> and there's fires in anaheim. it's terrible. aditi, that unk you for being o site bringing us the latest. aditi roy we'll see how many other vennyards may have been damaged. 20th century view of a prosperous america was two cars in every garage. in the 21st century, it might be two apple product in every home. coming up the surprising data on how pervasive apple is in american households. and harvey weinstein is gone, fired as the head of his own company in the wake of sexual harassment charges. the mini studio is said to be mulling a name change to distance itself from its infamous cfodeo-unr. will that be enough to save it from hollywood oblivion? that discussion is next. helping keep shoppers safe. this is a financial transaction secure from hacks and threats others can't see. this is a skyscraper whose elevators use iot data and ai to help thousands get to work safely and efficiently. this is not the cloud you know. this is the ibm cloud. the ibm cloud is the cloud for business. yours. ♪ ♪ so that's the idea. what do you think? hate to play devil's advocate but... i kind of feel like it's a game changer. i wouldn't go that far. are you there? he's probably on mute. yeah... gary won't like it. why? because he's gary. (phone ringing) what? keep going! yeah... (laughs) (voice on phone) it's not millennial enough. there are a lot of ways to say no. thank you so much. thank you! so we're doing it. yes! "we got a yes!" start saying yes to your company's best ideas. let us help with money and know-how, so you can get business done. american express open. it's life insurance and wharetirement solutions toic? help you reach your goals. it's having the confidence to create the future that's most meaningful to you. it's protection for generations of families, and 150 years of strength and stability. and when you're able to harness all of that, that's the power of pacific. ask a financial advisor about pacific life. surfaced today in the harvey weinstein scandal. "the new york times" is reporting actresses gwyneth paltrow and angelina jolie accused weinstein of sexual harassment other actresses accusing the former mogul of sexual assault a spokeswoman denies the allegations. former democratic presidential nominee hillary clinton whom weinstein helped raise millions for during last year's campaign issued a statement on the allegations as well. she said "i was shocked and appalled by the revelations about harvey weinstein behavior described by women coming forward can not be tolerated. their courage and the support of others is critical in helping to stop this kind of behavior." even with weinstein's firing from his studio now, the fate of the weinstein company remains in question so we bring in jeffrey sonnenfeld from yale school of management thank you for joining us tell us where you think you see this going >> thanks, kelly i can't see this business view coverable. there are plenty of executives have missteps, plenty of companies that the hit a pothole and there's no reason to give up for most of them in this case, this is irretrievable. this is a devastating destruction of reputations, of abuse and exploitation of power, of taking advantage of innocent people the charges were already bad last friday. what's come out today is just -- >> yeah. >> -- to say it's unbelievable, sadly, it's very believable. certain industries are highly subject to this. fashion and media and some other industries where you have personality-driven businesses and charismatic leaders that seem to not play by any of the rules of normal adult conduct or professional business behavior >> we've learned that they're already considering a name change for the company can that keep it going at this point? >> you know, i don't think so. if you take a look at designer, steve madden, who had a securities issue in the early 2002 or so, and went to prison and martha stewart who, of course, i think was, frankly, innocent, but was an easy target, she went to prison for some charges of obstruction of justice. they came out, they did their time, there was contrition in other cases people have had setbacks they were exonerating. they didn't have the abuses of innocent people. to have this kind of victims out there. and this wasn't even a singular horrific transgression this was a pattern of behavior that destroys the moral character of the individual and if he owns 42% of the plays, no matter what you call it, you call it, you know, mother teresa's library people are still going to know the reality here and as it is, these charismatic businesses rarely survive the founder, anyway, in this kind of world. these boutiques, these production shops -- >> look, the company was tremendously successful. today apple said they're pulling an elvis biopic series after the controversy that company was producing. his brother is still there produced films that have, entirely successful. i don't know how it ends if you're saying this company has no future. what happens to the intellectual property, what happens to all the existing movies that is been made, what happens to other works in production and contracts that -- there's a lot of people who still have a lot at stake here. >> there are legacy films, absolutely, somebody will be able to sell off the library and monetize that. those things will still be of value. you can find, though, many of these studios start to have basically a peak and the half live of these studios is not that long. they sort to trail off the miramax, predecessor studio, of course, sold is tit to disney it was driven by their personalities. they had a model the merchant ivory team had tremendous taste for great art films that became commercials. 44 films like "room with a view" or "the bostonians" or others. those guys went past the peak. one passed away since. the other one's 90. you don't see merchant ivory films anymore or that catalog still actively selling. if there are 50 great films, that was in their past >> and perhaps -- >> the reputation going forward. >> if it was a slow demise, it's now become a lot more swift. jeff, thanks for joining us. >> it's kind of like american appar apparel, that guy was irretrievable because of his misconduct in the apparel world. we've seen that, you've forever gotten something on your shoe, not going to get it off by trying to change its color. >> jeffrey sonnenfeld, appreciate it, again, from yale school of management. apple product popularity, the amount of gadgets on household depends on income levels the numbers from the all-america survey are next. coming up on "fast money" mike novogratz, why he's going all in on cryptocurrencies and bitcoin. more "closing bell" after this throughout my career, i've been fortunate enough to travel to many interesting places. i've always wanted to create those experiences for others. with my advisor's help along the way, it's finally my turn to be the host. when you have the right financial advisor, life can be brilliant. ameriprise welcome back with some breaking news on nafta at this hour ka kayla tausche has details. >> reporter: news regarding the percentage of parts in the u.s. and nafta countries in order for a manufactured good to be treated as duty free the proposal, from two sources who have been briefed on the plan, would require 85% of content to come from the three and a half that countries, mexico, canada, and the u.s., and at least 50% to come from the united states in order to be exempt from tariffs. that compares to the current requirement of 62.5% from all three countries. the largest sector affected is automobiles, with some reports, one from "inside trade," suggesting it could target autos specifically the stricter requirements are one controversial proposal expected to be tabled when the fourth round of talks kicks off tomorrow manufacturers will be paying close attention. >> not to mention whether you can rely on the percentage of numbers that are out there or whether it needs more scrutiny >> reporter: and these have been statistics that the department of commerce has been homing in on they say the u.s. share of that content has been eroding over the last several decades they've put out a study with their own data suggesting that we'll see whether canada and mexico are representaticeptive proposal if previous rounds are an indication, they will most likely not be. >> kayla tausche in washington, thank you very much. apple products are ubiquitous in u.s. households. steve liesman has the latest from his all american economics survey how did you end up asking about iphones, steve >> we get to ask big economic questions and drill down on people's personal or economic or technological lives. we asked folks, do you or do you not have an apple product in your house check it out, we asked the same question five years ago. about half of the public told us they did that number now nearly two-thirds, 64%. going on to the next screen, nicely done. how many apple products do you have five years ago it was 1.6 on average. now it's up by a full gadget, up to 2.6 but while you said correctly it is ubiquitous, every single demographic has around at least half of that demographic says they have an apple product but it various dramatically. the next one, by income group, they average just one. looking by region, a lot more of these apple gizmos out west, 3.7 versus 2.2 in the south. they've gotten quite a bit higher, 18 to 34 have an average of 3.6 apple products. kelly, what's your number? >> that's a good question. >> don't be shy. >> maybe three or four or five i'm trying to think. who is the guy who said, the american dream was to have a chicken in every pot, and with reagan it was like a car in every driveway and now? >> what i think, kelly, we don't have to say as american as apple pie anymore. we can just say as american as apple. hot dogs, apple, and baseball are the three things that appear to be the kind of litmus test. i was sort of surprised. it does raise the question how far do they have to go when it comes to raising -- smartphone penetration, by the way, in our survey is around 80% which curiously, when i looked it up on the internet, is about the same penetration as washing machines in america. >> i'll take the washing machine. that's very convenient to have in your house. steve, thank you very much, fascinating stuff. steve liesman. today's closing word is king and i'll explain why when we come right back. your bbut as you get older,ing. it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. we're 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 don't. 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. reminds me of how geico hasd been saving people money for over 75 years. hey, big guy! come on in! let me guess your weight! win a prize! sure, why not. 12 ounces! sorry, mate. four ounces. i've been taking the stairs lately. you win, big guy. sorry, 'scuse me! oh, he looks so much more real on tv. yeah... over 75 years of savings and service. get your rate quote today. you're watching cnbc, first in business worldwide. welcome back it's time for today's closing word today the word is king king as in cleveland cavaliers star basketball player lebron king james lebron has appeared in ads for everything from nike and beats to sprite and samsung. last night he starred in a new ad which aims to make an emerging technology less scary for mainstream consumers take a look. >> yo, bron. your car is here >> nope. >> i see there's no driver >> get in. >> intel is helping power autonomous cars you can trust so we can all be fearless >> that was an add for intel, which is hoping to normalize driverless cars with the help of one of basketball's biggest stars. even before the technology becomes commercially available it's reported to be the first self-driving car ad for the general public and intel has good reason to push the image of safe driverless cars. earlier this year the company spent more than 15 billion to buy mobileye intel has teamed up with waymo a pew research study from earlier this year found 56% of americans would not ride in a driverless car but if intel's new campaign succeeds in swaying the company, many companies will benefit. google, tess thtesla, ford, amog others they're all vying to become the king of the self-driving car that does it for "closing bell." thank you for joining us today we'll see you tomorrow "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. tonight, on a very special "fast money," wall street's crypto crazy. we're heading to credit suisse's and blockchain's conference and we'll talk to mike novogratz about why he's going all in on crypto coins pfizer is considering a big split. general electric bouncing back the names you know in your portfolio are having big days today. walmart gone

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