Transcripts For CNBC Closing Bell 20171030 : comparemela.com

Private equity on track for a record year fundraising, we got the woman in charge of Goldman Sachs clients, alison mass, her first tv interview ever. Very much looking forward to that. Lets begin with the top market story with the equities pulling back on new details about Congress Tax Reform plan. Ylan mui has the latest on what could be a delay in its implementation ylan kelly, republic b cans considering phasing in the reduction of the corporate rate according to bloomberg news. Under this plan the rate couldnt get to 20 until 2022 one word of caution here, the tax bill is still final yet. 20 corporate rate is one of president trumps red lines in this debate. White House Press Secretary Sarah Huckabee sanders appeared to throw cold water on the phasein idea this afternoon the president laid out his principles and doesnt include the phasing in were sit committed tothat moving forward, but, and i dont have any reasonable the reason this is even coming up is republicans have a revenue problem. Every percentage point reduction in the corporate rate is worth roughly 100 billion so you can save a lot of money by drawing out some of these cuts, and there are some economic models that show theres only a minimal impact to investment in gdp when you do that now, republicans are already making concessions on one of the biggest pay fors, the state and local tax deduction. House ways means chairman kevin brady saying hes willing to let taxpayers keep their deduction for local property taxes but still get rid of the one for state income tax guys, the Ways Means Committee is holed up today and tomorrow, trying to figure out all these details before the big reveal on november 1st back over to you. And ylan, of course, this morning the big question as quell well was is there going to be an indictment, who would to be on, what would the topic be . Now that we know the details is it directly affecting the ability of the administration to push forward with tax reform. You knows right now it seems this entire ball is in capitol hill i know that members are working really hard. Been working over the weekend to try to come to those final decisions on some of these details. So right now, it seems like at least for the lawmaker level, for its staff level, this is something that is not going to be throwing off their timeline however, it does potentially shift the momentum in washington, momentum is the name of the game, if you got speed behind this bill, if you keep winning, you keep winning, right . If theres something that comes in the way of this, perhaps derails or delays this plan, that could be a whole different ball game. Ylan, i was surprised to see this, i dont know in its a trial balloon, where its coming from, if were going hear about it when the plans announced wednesday, why would the Administration Delay implementation of something that could help the economy to the point of which the next election will already be upon us and we may not see any of the effect it may . The main thing in terms of delaying the corporate rate, they need to raise money, right . They have a wish list thats 4 trillion to 5 trillion long of tax cuts they want to implement, but a very small box of 1. 5 trillion relative to the size of their wish list they have to work with. They have got to find some way to pay for the tax cuts and some of their big proposals keep getting scaled back, keep getting walked back so they need to find some other solutions and this could potentially be one. Ylan, thank you very much for that we did see markets pull back a little bit as that story came out. Dow is down 85 still. What was that, about 11 00 this morning. Weve seen it tip over. Lost a little bit of its momentum certainly whats lost a lot of momentum, shares of sprint and tmobile getting hit hard on a report that their merger talks is been called off sources telling Cnbcs David Faber a slightly different story. He joins us with the details david . Thanks, wilf. This is an odd one to say the least. The Japanese Press nikkei reporting earlier today according to their sources as of 20r78 so softbank would make if known, between sprint and tmobile, it was to longer interested in doing so im not hearing that im speaking to people close to the situation on both sides very much skbi matby senately inv y intimately involved. I will say over the last couple weeks ive heard notes from both camps in different areas and that continues and, in fact, those two separate issues seem to be on the soft bank side related to governance or said a different way, the power that sprint would have, if any, in a merge, sprint and tmobile, while on the tmobile side as they continue to do their Due Diligence on sprint, people have been pointing me toward a potential Exchange Ratio and what the price ultimately would be, despite the fact both camps had identified certainly a range, a fairly tight range for the price and not to mention that deal point number one had been for deutsche telecom, the owner of tmobile, the majority owner of tmobile that it wanted to continue to consolidate tmobile on its financials which means it would be the Controlling Shareholder that was deal point number one tmobile had thought that softbank, sprints owner, had fully agreed to that as they move forward perhaps something of a surprise to that side, in fact, is what ive been picking up, this idea that had been expressed in the Japanese Press that they would pull out as a result of no longer believing that their voice would be heard well enough in a combined company and as well the softbank board, im told, on friday, did make it clear to the man who founded control softbank that it was worried about whether or not his overall view for telecommunications in the world and particularly in the u. S. Market that still is a structurally significant part of the way he thinks about the world and how it evolves, would be met with this potential deal. And so this is where we find ourselves. Now sources indicating on both sides they do continue to negotiate right now. There has been and seems to be an expectation that if they cant reach a deal on price this week, the two sides will abandon the talks. And if they do, well, then we might get an announcement of a definitive agreement as soon as a week or two from now so, well be watching it closely, but it does appear some of those reports were a bit exaggerated, though it is safe to say that the notes i picked up a couple weeks ago have only grown in terms of at least how loud they are on both issues of governance, apparently on the softbank side and price to a serb certain extent on the tmobile side, guys. We see, david, basically how much the market priced in the deal, you have analysts who cover the sector who are already assuming basically its done and looking beyond that for how they would use the spectrum, how they would use the synergies and cost savings and how it mike make the wireless space more competitive, a combined entity, could compete more effectively against at t and verizon. Its really interesting to now see maybe this isnt going to come together and doubt thats the last wed hear about some kind of tieup in this sector or reaching across to the cable companies. Well, you know, certainly we know, i reported it as well, softbank thought long and hard and made attempts to acquire charter, to reference in part what youre talk bing about, kelly. Perhaps theyd try again they did meet significant resistance from tom rutledge and did not move forward with a proposal to acquire that company, then moving back to focus on tmobile and where they are right now. Thats certainly a possibility to your overall point, if anybody out there thought there was going to be an impedment here, they thought it would be on either side saying we dont think this can get through on the antitrust review, that the department of justice will continue to view this potential deal as anticompetitive that would is beencertainly th best guess of anybody in terms of what might have stopped this potential deal from occurring. Not what is happening now. And, again, my sources indicate they have not ceased negotiations and that they are not planning on sending, that is from the softbank side, to tmobile, something that says were out as of tomorrow it is fair to say there are hurdles that perhaps had not been fully understood as little as a couple of weeks back. David, thank you very sticking around for us hes a busy man. David faber. Was actually going to say, masa son, whether hes agreeing to negotiations or not, hes definitely involved with lots of investments. Lets discuss the markets further today. Joining our closing bell exchange, sylvia, managing director of Capital Markets at direction. Steven, founder and president of sarg 986 and contributor at thestreet. Com. And Rick Santelli at the cme sarg, ill start with you, if i may. In terms of what you make of this tax reform story that we spoke with ylan earlier in the day, whether that has played into the Market Selling off a little bit, particularly when you look at how some of these smaller cap stocks reacted as well. Thats precisely it actually thats the entire reason for todays little bit of a el selloff look at the transports and look at the small caps, you can see there is some smoke behind this fire or fire behind this smoke they must be seriously debating this fiveyear phasein for the Corporate Tax cuts, which if you ask me, has to be one of the stupidest things i ever have heard. Hopefully it comes out in the wash a little bit and this 1. 3 sell off in these type names is a buying opportunity just thinking. Well, sarg, unless its seriously part of the plan, right . I dont think this will be part of the plan unless they were trying to sabotage their own plan which theyre good at im not saying thats completely off the wall i do think this is an opportunity, i do think its a path you might travel. Well see come wednesday what those details are. Rick, i actually wanted to ask you about some kind of interesting movements in the Interest Rate space today. You know, we have german inflation was really week. Here in the u. S. How about the reports this morning, personal savings, that rate for americans, back down to its lowest since 2007 . Reporter yeah, theyre spending their seeds, their core seeds. They dont have lot of savings its going to, of course, have an effect on consumerism in general. I think thats a very interesting point, but, you know, the entire report was a bit complex. It had some very good qualities to it, indeed, that were overlooked because they were already embedded in a report last week when we had the 3 gdp. Income up. 4 was really strong that was the second best number of the year in spending as we all know, best since august of 09. 20year picture of spending. That 1 is the fifth largest month over month percentage gain really truly good numbers. The savings rate is something to think about. The seed corn needs to be saved to some extent and may have implications down the road as far as all the stories of the day with taxes, nobody knows how its going to truly pan out. I do disagree a bit with sarg, the worst thing would be to do nothing. Okay anything is better than leaving it the way it is, but the curve flattened a lot today. The short end was pretty muc immune to all the stories about anything and the long end was under a bit of pressure. Of course we have an excuse me, we have a fed meeting starting tomorrow, probably nothing changed on wednesday when we get the decision but its also the same week as the big labor report and, you know, the labor sides always important the markets a bit jittery here on Interest Rates meaning investors want to wait and see how everything look by the end of the week. Bank of japan meeting tonight as well, rick, but sylvia, i wanted to ask you about tech stocks because there was some serious shortterm money to be made as various Tech Companies reported late last week. How are you thinking about facebook and apple reporting this week . Yeah, weve seen a continued run of the s p and nasdaq. Tech was the big leader behind that great earnings from amazon and alphabet and, you know, sitting in my seat, etf issuer with a high beta shortterm conviction trade, we see constitutioninstiw coming in, particularly a lot of those names like amazon, facebook, twitter and alphabet on a continued optimistic trend. I was also looking at the Home Builders and, sylvia, given how much leverage you guys have, i shouldnt have been too surprised. This one etf is up 150 year to date nail, i mean, we know the builders look at the deal we have again today, lennar. Big news today. Weve seen probably the best housing Sales Numbers that past september. And theres continued optimism there in the Housing Sentiment index. Weve certainly seen a lot of flow coming into now if youre looking for individual names there, you certainly have home depot, lennar, vr horton, they may move along with these positive sentiment and optimistic feelings of investors toward that sector saw hey, guys, could i ask sylvia a question go for it. Shes sitting right next to you, sarg, go for it. Thank you, what do you think of apple im long the shares. 176 price target on it its out this week youre obviously on to tech. What do you think . Yeahi, look, im a forever bull on apple. The guys i work with certainly sli make fun of me for it. I believe in their products. Its working. I was looking forward to the iphone x launch. I sort of thought there would be some good positive sentiment around it. And, you know, its just been an upward story for years and its really helped, you know, our tech etf and i think that overall, people love apple people love the product. Its a name to own, not the trade. Sarg, are you a forever bull on anything. Im a forever bull on something at all times all right . I did get out of my defense names. Not my entire position, but i know ive been banging the drum on defense lately. I did get out i got out of lockheed i hung on to my wait a minute i think you sold them to the lady sitting next to you. I still like the space long term i just think you buy lockheed back at 300, its trading around 309 rightsylvia, what about yous on defense on defense, saw the 700 billion senate bill, see a lot of news about, you know, president being promilitary, International Tensions on the rise, theres a lot of spending going into boeing and to, you know, aircraft production and whatnot. I think that its definitely its definitely a sector that our traders have been looking toward its, again, keeps going up, and, you know, if military spending investment, its a good place to look for a shortterm trade. Trump trade. Quickly, what currency are you bull on . Only one right answer, rick. Im a forever bull on the notion that the markets will always win in the end. Thats what im a bull about the markets are always right in the end. Rock n roll, rick. Rick santelli, done bla sylvia, stephen, and rick. The dow down 91 points today. The s p tipping down by ten. The nasdaq down 12 the russell down 19. Russell 2000 small caps down more than 1 right now. Hersheys interested in buy ing nestles candy business. Michele buck joins us. How theyre trying to increase beyond candy into healthy snacks. They brought candy today. Youve already been going for it. Plus Paul Manafort has been indicted on charges including much laundering and tax evasion. Up next, what this means for trumps economic agenda. We want to hear from you, reach out to the show on twitter, facebook, or send us an email youre watching cnbc, first in business worldwide alerts wouldnt you like one from the market when it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities in real time. Fidelity. Open an account today. Fidelity. You know whats difficult . Adulting. Hi, guys. Im back. Time to slay no,i have a long time girlfriend. You know whats easy . Building your website with godaddy. Get your domain today and get a free trial of gocentral. Build a better website in under an hour. Right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. His advisor ran the numbers and showed that he wouldnt be able to retire until he was 68. The client realized, i need to get back into the markets i need to get back on track with my plan. The Financial Advisor was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor. Welcome back check out shares of amd, advanced microdevices, falling today after being downgraded by Morgan Stanley from underweight to equal weight. Citing a decline in cryp cryptocurrency next year and flat gaming graphics could put a burden on the companys core microprocesser business adds to the decline weve seen of late, down nearly 9 in the session today. While tax reform and the fed chair announcement was supposed to be center stage this week in washington, the first indictment in the investigation into whether russia interfered with last years president ial election is taking center stage. Eamon javers has the latest for us eamon . Reporter yeah, hi, wilfred, we just saw the lawyer for Paul Manafort appear outside the courthouse here in washington, d. C. , Kevin Downing, explaining some of what his take is on all of this, Paul Manafort, were told, is heading to the u. S. Marshals service for processing inside the building behind me here we have a little bit of a detail on the conditions here paul man noo manafort is going to g held under for the next couple days same as what the government requested. Comply with home confinement, report in daily by telephone only able to leave for medical issues, religious observances rick gates, his lobbying partner, 5 million unsecured appearance bond. That means he has to appear in court when asked or else h he loses that money, so Goldman Sachs<\/a> clients, alison mass, her first tv interview ever. Very much looking forward to that. Lets begin with the top market story with the equities pulling back on new details about Congress Tax Reform<\/a> plan. Ylan mui has the latest on what could be a delay in its implementation ylan kelly, republic b cans considering phasing in the reduction of the corporate rate according to bloomberg news. Under this plan the rate couldnt get to 20 until 2022 one word of caution here, the tax bill is still final yet. 20 corporate rate is one of president trumps red lines in this debate. White House Press Secretary<\/a> Sarah Huckabee<\/a> sanders appeared to throw cold water on the phasein idea this afternoon the president laid out his principles and doesnt include the phasing in were sit committed tothat moving forward, but, and i dont have any reasonable the reason this is even coming up is republicans have a revenue problem. Every percentage point reduction in the corporate rate is worth roughly 100 billion so you can save a lot of money by drawing out some of these cuts, and there are some economic models that show theres only a minimal impact to investment in gdp when you do that now, republicans are already making concessions on one of the biggest pay fors, the state and local tax deduction. House ways means chairman kevin brady saying hes willing to let taxpayers keep their deduction for local property taxes but still get rid of the one for state income tax guys, the Ways Means Committee<\/a> is holed up today and tomorrow, trying to figure out all these details before the big reveal on november 1st back over to you. And ylan, of course, this morning the big question as quell well was is there going to be an indictment, who would to be on, what would the topic be . Now that we know the details is it directly affecting the ability of the administration to push forward with tax reform. You knows right now it seems this entire ball is in capitol hill i know that members are working really hard. Been working over the weekend to try to come to those final decisions on some of these details. So right now, it seems like at least for the lawmaker level, for its staff level, this is something that is not going to be throwing off their timeline however, it does potentially shift the momentum in washington, momentum is the name of the game, if you got speed behind this bill, if you keep winning, you keep winning, right . If theres something that comes in the way of this, perhaps derails or delays this plan, that could be a whole different ball game. Ylan, i was surprised to see this, i dont know in its a trial balloon, where its coming from, if were going hear about it when the plans announced wednesday, why would the Administration Delay<\/a> implementation of something that could help the economy to the point of which the next election will already be upon us and we may not see any of the effect it may . The main thing in terms of delaying the corporate rate, they need to raise money, right . They have a wish list thats 4 trillion to 5 trillion long of tax cuts they want to implement, but a very small box of 1. 5 trillion relative to the size of their wish list they have to work with. They have got to find some way to pay for the tax cuts and some of their big proposals keep getting scaled back, keep getting walked back so they need to find some other solutions and this could potentially be one. Ylan, thank you very much for that we did see markets pull back a little bit as that story came out. Dow is down 85 still. What was that, about 11 00 this morning. Weve seen it tip over. Lost a little bit of its momentum certainly whats lost a lot of momentum, shares of sprint and tmobile getting hit hard on a report that their merger talks is been called off sources telling Cnbcs David Faber<\/a> a slightly different story. He joins us with the details david . Thanks, wilf. This is an odd one to say the least. The Japanese Press<\/a> nikkei reporting earlier today according to their sources as of 20r78 so softbank would make if known, between sprint and tmobile, it was to longer interested in doing so im not hearing that im speaking to people close to the situation on both sides very much skbi matby senately inv y intimately involved. I will say over the last couple weeks ive heard notes from both camps in different areas and that continues and, in fact, those two separate issues seem to be on the soft bank side related to governance or said a different way, the power that sprint would have, if any, in a merge, sprint and tmobile, while on the tmobile side as they continue to do their Due Diligence<\/a> on sprint, people have been pointing me toward a potential Exchange Ratio<\/a> and what the price ultimately would be, despite the fact both camps had identified certainly a range, a fairly tight range for the price and not to mention that deal point number one had been for deutsche telecom, the owner of tmobile, the majority owner of tmobile that it wanted to continue to consolidate tmobile on its financials which means it would be the Controlling Shareholder<\/a> that was deal point number one tmobile had thought that softbank, sprints owner, had fully agreed to that as they move forward perhaps something of a surprise to that side, in fact, is what ive been picking up, this idea that had been expressed in the Japanese Press<\/a> that they would pull out as a result of no longer believing that their voice would be heard well enough in a combined company and as well the softbank board, im told, on friday, did make it clear to the man who founded control softbank that it was worried about whether or not his overall view for telecommunications in the world and particularly in the u. S. Market that still is a structurally significant part of the way he thinks about the world and how it evolves, would be met with this potential deal. And so this is where we find ourselves. Now sources indicating on both sides they do continue to negotiate right now. There has been and seems to be an expectation that if they cant reach a deal on price this week, the two sides will abandon the talks. And if they do, well, then we might get an announcement of a definitive agreement as soon as a week or two from now so, well be watching it closely, but it does appear some of those reports were a bit exaggerated, though it is safe to say that the notes i picked up a couple weeks ago have only grown in terms of at least how loud they are on both issues of governance, apparently on the softbank side and price to a serb certain extent on the tmobile side, guys. We see, david, basically how much the market priced in the deal, you have analysts who cover the sector who are already assuming basically its done and looking beyond that for how they would use the spectrum, how they would use the synergies and cost savings and how it mike make the wireless space more competitive, a combined entity, could compete more effectively against at t and verizon. Its really interesting to now see maybe this isnt going to come together and doubt thats the last wed hear about some kind of tieup in this sector or reaching across to the cable companies. Well, you know, certainly we know, i reported it as well, softbank thought long and hard and made attempts to acquire charter, to reference in part what youre talk bing about, kelly. Perhaps theyd try again they did meet significant resistance from tom rutledge and did not move forward with a proposal to acquire that company, then moving back to focus on tmobile and where they are right now. Thats certainly a possibility to your overall point, if anybody out there thought there was going to be an impedment here, they thought it would be on either side saying we dont think this can get through on the antitrust review, that the department of justice will continue to view this potential deal as anticompetitive that would is beencertainly th best guess of anybody in terms of what might have stopped this potential deal from occurring. Not what is happening now. And, again, my sources indicate they have not ceased negotiations and that they are not planning on sending, that is from the softbank side, to tmobile, something that says were out as of tomorrow it is fair to say there are hurdles that perhaps had not been fully understood as little as a couple of weeks back. David, thank you very sticking around for us hes a busy man. David faber. Was actually going to say, masa son, whether hes agreeing to negotiations or not, hes definitely involved with lots of investments. Lets discuss the markets further today. Joining our closing bell exchange, sylvia, managing director of Capital Markets<\/a> at direction. Steven, founder and president of sarg 986 and contributor at thestreet. Com. And Rick Santelli<\/a> at the cme sarg, ill start with you, if i may. In terms of what you make of this tax reform story that we spoke with ylan earlier in the day, whether that has played into the Market Selling<\/a> off a little bit, particularly when you look at how some of these smaller cap stocks reacted as well. Thats precisely it actually thats the entire reason for todays little bit of a el selloff look at the transports and look at the small caps, you can see there is some smoke behind this fire or fire behind this smoke they must be seriously debating this fiveyear phasein for the Corporate Tax<\/a> cuts, which if you ask me, has to be one of the stupidest things i ever have heard. Hopefully it comes out in the wash a little bit and this 1. 3 sell off in these type names is a buying opportunity just thinking. Well, sarg, unless its seriously part of the plan, right . I dont think this will be part of the plan unless they were trying to sabotage their own plan which theyre good at im not saying thats completely off the wall i do think this is an opportunity, i do think its a path you might travel. Well see come wednesday what those details are. Rick, i actually wanted to ask you about some kind of interesting movements in the Interest Rate<\/a> space today. You know, we have german inflation was really week. Here in the u. S. How about the reports this morning, personal savings, that rate for americans, back down to its lowest since 2007 . Reporter yeah, theyre spending their seeds, their core seeds. They dont have lot of savings its going to, of course, have an effect on consumerism in general. I think thats a very interesting point, but, you know, the entire report was a bit complex. It had some very good qualities to it, indeed, that were overlooked because they were already embedded in a report last week when we had the 3 gdp. Income up. 4 was really strong that was the second best number of the year in spending as we all know, best since august of 09. 20year picture of spending. That 1 is the fifth largest month over month percentage gain really truly good numbers. The savings rate is something to think about. The seed corn needs to be saved to some extent and may have implications down the road as far as all the stories of the day with taxes, nobody knows how its going to truly pan out. I do disagree a bit with sarg, the worst thing would be to do nothing. Okay anything is better than leaving it the way it is, but the curve flattened a lot today. The short end was pretty muc immune to all the stories about anything and the long end was under a bit of pressure. Of course we have an excuse me, we have a fed meeting starting tomorrow, probably nothing changed on wednesday when we get the decision but its also the same week as the big labor report and, you know, the labor sides always important the markets a bit jittery here on Interest Rate<\/a>s meaning investors want to wait and see how everything look by the end of the week. Bank of japan meeting tonight as well, rick, but sylvia, i wanted to ask you about tech stocks because there was some serious shortterm money to be made as various Tech Companies<\/a> reported late last week. How are you thinking about facebook and apple reporting this week . Yeah, weve seen a continued run of the s p and nasdaq. Tech was the big leader behind that great earnings from amazon and alphabet and, you know, sitting in my seat, etf issuer with a high beta shortterm conviction trade, we see constitutioninstiw coming in, particularly a lot of those names like amazon, facebook, twitter and alphabet on a continued optimistic trend. I was also looking at the Home Builders<\/a> and, sylvia, given how much leverage you guys have, i shouldnt have been too surprised. This one etf is up 150 year to date nail, i mean, we know the builders look at the deal we have again today, lennar. Big news today. Weve seen probably the best housing Sales Numbers<\/a> that past september. And theres continued optimism there in the Housing Sentiment<\/a> index. Weve certainly seen a lot of flow coming into now if youre looking for individual names there, you certainly have home depot, lennar, vr horton, they may move along with these positive sentiment and optimistic feelings of investors toward that sector saw hey, guys, could i ask sylvia a question go for it. Shes sitting right next to you, sarg, go for it. Thank you, what do you think of apple im long the shares. 176 price target on it its out this week youre obviously on to tech. What do you think . Yeahi, look, im a forever bull on apple. The guys i work with certainly sli make fun of me for it. I believe in their products. Its working. I was looking forward to the iphone x launch. I sort of thought there would be some good positive sentiment around it. And, you know, its just been an upward story for years and its really helped, you know, our tech etf and i think that overall, people love apple people love the product. Its a name to own, not the trade. Sarg, are you a forever bull on anything. Im a forever bull on something at all times all right . I did get out of my defense names. Not my entire position, but i know ive been banging the drum on defense lately. I did get out i got out of lockheed i hung on to my wait a minute i think you sold them to the lady sitting next to you. I still like the space long term i just think you buy lockheed back at 300, its trading around 309 rightsylvia, what about yous on defense on defense, saw the 700 billion senate bill, see a lot of news about, you know, president being promilitary, International Tensions<\/a> on the rise, theres a lot of spending going into boeing and to, you know, aircraft production and whatnot. I think that its definitely its definitely a sector that our traders have been looking toward its, again, keeps going up, and, you know, if military spending investment, its a good place to look for a shortterm trade. Trump trade. Quickly, what currency are you bull on . Only one right answer, rick. Im a forever bull on the notion that the markets will always win in the end. Thats what im a bull about the markets are always right in the end. Rock n roll, rick. Rick santelli, done bla sylvia, stephen, and rick. The dow down 91 points today. The s p tipping down by ten. The nasdaq down 12 the russell down 19. Russell 2000 small caps down more than 1 right now. Hersheys interested in buy ing nestles candy business. Michele buck joins us. How theyre trying to increase beyond candy into healthy snacks. They brought candy today. Youve already been going for it. Plus Paul Manafort<\/a> has been indicted on charges including much laundering and tax evasion. Up next, what this means for trumps economic agenda. We want to hear from you, reach out to the show on twitter, facebook, or send us an email youre watching cnbc, first in business worldwide alerts wouldnt you like one from the market when it might be time to buy or sell . With fidelitys realtime analytics, youll get clear, actionable alerts about potential Investment Opportunities<\/a> in real time. Fidelity. Open an account today. Fidelity. You know whats difficult . Adulting. Hi, guys. Im back. Time to slay no,i have a long time girlfriend. You know whats easy . Building your website with godaddy. Get your domain today and get a free trial of gocentral. Build a better website in under an hour. Right in the heart of the was in his financial crisis, and saw his portfolio drop by double digits. It really scared him out of the markets. His advisor ran the numbers and showed that he wouldnt be able to retire until he was 68. The client realized, i need to get back into the markets i need to get back on track with my plan. The Financial Advisor<\/a> was able to work with this client. Hes now on track to retire when hes 65. Having someone coach you through it is really the value of a Financial Advisor<\/a>. Welcome back check out shares of amd, advanced microdevices, falling today after being downgraded by Morgan Stanley<\/a> from underweight to equal weight. Citing a decline in cryp cryptocurrency next year and flat gaming graphics could put a burden on the companys core microprocesser business adds to the decline weve seen of late, down nearly 9 in the session today. While tax reform and the fed chair announcement was supposed to be center stage this week in washington, the first indictment in the investigation into whether russia interfered with last years president ial election is taking center stage. Eamon javers has the latest for us eamon . Reporter yeah, hi, wilfred, we just saw the lawyer for Paul Manafort<\/a> appear outside the courthouse here in washington, d. C. , Kevin Downing<\/a>, explaining some of what his take is on all of this, Paul Manafort<\/a>, were told, is heading to the u. S. Marshals service for processing inside the building behind me here we have a little bit of a detail on the conditions here paul man noo manafort is going to g held under for the next couple days same as what the government requested. Comply with home confinement, report in daily by telephone only able to leave for medical issues, religious observances rick gates, his lobbying partner, 5 million unsecured appearance bond. That means he has to appear in court when asked or else h he loses that money, so Paul Manafort<\/a> being subjected to some fairly strict conditions near although those are temporary and only imply until a hearing on thursday to iron this out. I talk bed to Kevin Downing<\/a> on his way out of here, they havent agreed necessarily to these terms long term but for the next couple days thats what Paul Manafort<\/a>s life is going to be like. Downing also said some of this is ridiculous and said the government was trying out a novel legal theory heres what he said to cameras after emerging from the building a few moments ago. The second thing about this indictment that i, myself, find most ridiculous, is a claim that maintaining offshore accounts to bring all your funds into the United States<\/a> as a scheme to conceal from the United States<\/a> government is ridiculous thank you. Reporter so downing there making some short remarks here at the courthouse. We also heard earlier from Sarah Huckabee<\/a> sanders at the white house, she was asked a number of questions about this said ultimately none of this in the white houses view had anything to do with the Trump Campaign<\/a>, itself she distanced the Trump Campaign<\/a> from some of the officials here and she also didnt rule in or rule out the idea of firing Robert Mueller<\/a>, the special counsel, himself heres exactly how she phrased that no intention or plan to make any changes in regards to the special counsel, but look, todays announcement has nothing to do with the president , has nothing to do with the president s campaign, or Campaign Activity<\/a>. The real collusion scandal, as weve said several times before, has everything to do with the Clinton Campaign<\/a>, fusion gps, and russia theres clear evidence of the Clinton Campaign<\/a> colluding with russian intelligence to spread disinformation and smear the president. Reporter so the white house there very much hoping to shift the focus to Hillary Clinton<\/a> and the democrats but saying theres no intention or plan right now to make any changes in terms of the special counsel, himself, Robert Mueller<\/a> so the white house not necessarily saying what the president s going to do on that front. Well see how that plays politically up on capitol hill in the wake of all these developments today, guys back over to you eamon, thank you very much for that full update. Reporter you bet. For us. And throughout the day all right, weve got about 37 minutes to go until the bell. Were down about. 4 for each of the three major indices which is near the lows of the day for the dow. Just above it. The nasdaq doing a little better, down. 25 . Small caps and others exposed to tax reform are toward the bottom, 1. 4 . Up next, tomorrow is halloween, today is the biggest day of the year for hersheys candy sales. Ahead well talk to hersheys ceo about how this season is stacking uping on the door for m a. A big wager on legal marijuana. lbryou all the details of the beer makers bet when closing bell comes right back. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders<\/a> connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. 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. Welcome back to the closin bell. Lets check in on todays Market Movers<\/a> the broad index down 0. 4 for the dow, s p shares of macys falling after receiving a downgrade from citi from sell to neutral significant pressure on sales for several years. This movie coming on the heels f jp pennys weak profit forecast announced last week. Down 4 , macys today. General motors posting decline today after being cut to sell from neutral by Goldman Sachs<\/a>, goldman saying it expects the car makers earnings to take a downward turn in 2018, trading down 3 today. The her vshey company prep e preparing for its biggest day of the year Halloween Spending<\/a> will hit a record over 9 billion this year joining us in an exclusive interview now is hersheys ce i michele buck. Thank you very much. Today is the biggest day. Today is the biggest day. Its the day before halloween so everybody is stocking up for the big day. Its also the biggest season as well of sales it is. More than christmas or easter or valentines day. It is the biggest season. Its really a season focused around family and friends and traditions with costumes and, of course, trickortreating. Why is spending up 8 this year you know, we never know what to make out of these surveys but every year they say, people are going to spend 3 more, going to spend 8 more this year, over 9 billion. Whats going on with halloween i think consumers are really enjoying experiences where they can combine friends and family with some of their favorites, and certainly as we look at our hershey brands, hersheys, reeses, kit kat. Do you feel the strength of the brands today is as strong as ever or the changing nature of retail putting more pressure and price competition into what your Business Model<\/a> is . No, im seeing the strerngth of our core brands be better than ever. Our five biggest core brands were actually up mid Single Digits<\/a> about 5 on a yeartodate basis and saw similar results last year so we continue to see growth on those brands theyre among some of the most favorites with consumers going to change pretty aggressively the way you do advertise them away from traditional Linear Television<\/a> models, for example, onto the social media platforms, where are you finding the most r resonance with your advertising . Sure, we try to reach the consumers wherever theyre consuming media, for some thats television, for some thats digital. Increasing level of social need y media to reach the younger consumers especially. Mongolese, what is the rationale behind not combining with a giant like that, taking advantage of synergies there to really create a global confectionary giant . You know, i think snacking is growing, consumers are snacking more and more. Snacking and confection are both great categories therefore, i thnk theres a lot of interest in those category and in those brands. Is it hard because of how much hershey means to pennsylvania does that mean that the state, you know, whatever the price may be that it just has to be that much more compelling or the guarantees about staying in your preej region have to be that much more firm for you guys to ever look at a deal like that. You know, im really focused on creating shareholder value, to me thats about driving our core brands, making sure we bring Great Innovation<\/a> to the marketplace because thats what consumers are looking for. Really driving our business in bricks and mortar and also expanding into ecommerce which is a highgrowth channel then lastly really expanding into new occasions, either with our core brands, or via m a. Also a giant hershey bar just arrived which is very nice to see. Separately, what about m a in the opposite direction considering any acquisitions yourself again, im very focused on driving our business and creating shareholder value with whats in my direct area of focus right now. Right now my key focus is halloween as you can see our key characters over there. Indeed. Ringing the bell in just a moment in terms of that potential m a, weve seen some of your rivals under activist pressure at the moment, some people calling for some of them to be split up and certain assets to come off nestle u. S. Has been mentioned is that something youve considered you know, im really pleased with the performance were having in the marketplace so weve had strong year to date performance, had a good solid q3, growing the top line as well as our eps in a vol time environment. We are on track to deliver at the high end of our eps growth this year and feel great about that final question, i know we pushed you on this quite a bit, i know its difficult, of course, to talk about, but a lot of other companies have pivoted more toward health and away from snacks and candies whats your philosophy about that you know, if we look at consumers, consumers have lots of different snacking needs. Sometimes during the day, theyre looking for a treat and they know that confection is a treat. So they see it for what it is. Its certainly not a center of the plate category so we feel good and we feel good about the growth were seeing both in indulgent categoriy iess well as health and wellness. We think it all creates opportunity. Dont make the reeses a health product, okay dont want it to be gluten free or low sodium. Leave it alone. Sort of a once a week product. Once a day product, okay . Kit kat so far today. Were looking forward to exciting consumers with some of our great products out there for halloween, iconic reeses pumpkin. Thats right. Hersheys ghosts i hope all of you will i like it has a higher Peanut Butter<\/a> to chocolate ratio, sh t what gets me excited thank you very much. Youre welcome. Good luck ringing the closing bell with all of your buddies. Thanks. Were very excited about that. Michele buck, hersheys ceo. A news alert now, Julia Boorstin<\/a> has those details. End of the era for netflixs hit show house of cards. The show will come to an end after its sixth season its currently in production on season six which is scheduled to air on netflix next year another 13 episodes of the show. The move to end the show was reportedly in the works since the summer according to the hollywood reporter. This news comes a day after allegations that the star of the show, kevin spacey, allegedly assaulted an actor when the actors was just 14 years old those allegations coming out several decades after that incident now, spacey, kevin spacey, apologizing for inappropriate drunken behavior and also coming out as gay as part of his apolo apology. But this, of course, has been a very stacandalous day for the sr of the show, kevin spacesy we reached out to netflix and Media Rights Capital<\/a> which produces the show and licenses it to netflix. Have not gotten official comment from either of them. The timing of this news coming out about the cancelation of house of cards which of course has been an iconic and defining moment for netflixs push into original content, certainly very notable. Back over to you yeah, big deal show for them. Julia, thank you very much Julia Boorstin<\/a>. Time for a cnbc news update, lets get over to contessa brewer. Kelly, heres whats happening. Right now, 11 nations opened talks in japan on the outline of a free trade deal that would exclude the United States<\/a>. Negotiators are aiming to finalize the basic shape of the Transpacific Partnership<\/a> next month. And theyre focusing really on whether to retain items originally proposed by the United States<\/a>. French president Emmanuel Macron<\/a> signed a controversial measure and antiterrorism law that supersedes the state of emergency in place, that countrys november 2015 attacks. The legislation would see many of the Emergency Powers<\/a> enshrined in law with limited oversight from the judiciary. Thousands of white farmers jamming traffic on major roads in south africa, its a protest against the murders of farmers among the countrys white minority the supporters wore black in memory of farmers killed on their properties. A 2000 bmw z8 sports car once owned by steve jobs will be auctioned off in new york on december 6th the twoseater features a 400 horsepower v8 engine with a top speed of 18 f mi6 Miles Per Hour<\/a> car costs 128,000 new expected to sell for up to 4 400,000 it. To get it going to its top speed in new york city would be, of course, priceless and also not likely to happen thats the cnbc news updaut te this hour. Ill send it back to you guys, kelly, wilf. All right, well pick up there. Joined now by gordon to discuss the close of the market. So first up, financials are down today. We already spoke about how small caps are financials, though, you are pointing to that the fact they were down on friday yeah, its been interesting, you know, look, were rotational here i think the trend is still good. Were starting to see, you know, not to have the same sort of where you would see certain sectors pick up that were beaten down that isnt happening on the same sort of delta. So were watching it carefully and well see what happens particularly tomorrow, because tomorrows the end of the month. Major liquidity event. The question is will halloween bring us a trick or a treat . Your take is what well, i still think that, look, something derails this thing, theres not something to assume theyre going to change the momentum trump tax proposal seems to be some of the guys are starting to hedge on the politicians on that a little bit fed chairman coming in there, got to look at the bond market again, look at the president , may have his assets in a blind trust but hes not blind i dont think he comes up with anything that derails the movement we had. However, that being said, if they come up with something at these levels, you know, we could see the reversal. Gordon, to hedge yourself in case we get a trick, theres a big tub of candy over there. I suggest you get a handful of that as well going to be supporting the market if we gdp. Going to leave it there kell, back to you. All right, thank you both, very much. Lets have a look if we can, a live one at a launch of a Spacex Falcon<\/a> 9 rocket, spacexs 16th launch of the year Morgan Brennan<\/a> joins us, a little more commentary morgan reporter this is a falcon 9 rocket that Just Launched<\/a> from Floridas Kennedy Space Center<\/a> it is carrying a korea sat satellite into orbit, a satellite thats going to bring broadband and Television Access<\/a> to south korea it will be up in orbit for the next 15 years. Why this matters, this is the 16th launch for elon musks space upstart. That means it has now doubled its previous annual record in terms of launches, most launches it had done in a single calendar year had been eight before now it has several more launches on the docket before years end we get this first falcon heavy, the nextgeneration rocket test. More milestones expected for this company next year but the plan here, and this is going to happen within the next couple of minutes, is that first stage booster stage is going to detach, its going to come back down, and for the 19th time in a row, the companys going to try and land that back on earth, specifically on a drone ship in the Atlantic Ocean<\/a> to be reused as a later time. Its launches like these the Company Expects<\/a> to do 30 next year which would be half of all the launches scheduled in the world next year. Its launches like these that are the reasons spacex is now valued at more than 20 billion. Kelly, back over to you. Incredible stuff. See if it can stick its landing. Morgan, thank you very much. Morgan brennan. Underarmour shares down more than 40 this year coming up, well debate whether this is an opportunity to buy that stock ahead of moowtorrs earnings a pop here, up 3 today. That debate is coming up on the closing bell. Today, the new new york is ready for takeoff. Were invested in creating the worlds first stateoftheart drone testing facility in Central New York<\/a> and the mohawk valley, which marks the start of our nations first 50mile unmanned flight corridor. And allows us to attract the worlds top drone talent. All across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. To grow your business with us in new york state, win an uncertain world . K predictable income pgim sees alpha in real assets. Like agriculture to feed the world. And energy to fuel its growth. Real estate such as ecommerce 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<\/a> management businesses of prudential. I cant wait for her to have that College Experience<\/a> that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right Financial Advisor<\/a>, life can be brilliant. Ameriprise swho live within five miles of custyour business . 54, like these two. And that guy. Or maybe you want to reach women, ages 18 to 34, who are interested in fitness. Namaste. Whichever audience youre looking for, well find them were the finders. We work here at comcast spotlight, and we have the best tools for getting your advertising message out there. Anywhere, any way your audience watches. Consider them found. Welcome back less than 20 minutes to go until the close. Dow down, coming off seven straight gains the russell is shedding 18. Constellation brands is taking a stake in a marijuana company. Next, how the new beverages could soon be at the store and how could that impact the stock. Under armour gearing up ii report before the bell stay with us were back here on the closing bell in a couple minutes. This is not a cloud. This is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. This is a financial Transaction Secure<\/a> from hacks and threats others cant 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. Constellation brands making a push into marijuanainfused drinks good afternoon to you, Constellation Brands<\/a> chasing a new kind of buzz the maker of corona taking a nearly 10 stake in canadabased canopy growth. Canopy is the Worlds Largest<\/a> publicly traded Cannabis Company<\/a> with a market valuation of 2. 2 billion Canadian Dollars<\/a> planning to work with the grower to market cannabisinfused beverages. The move is seen as a big bet on the nationwide legalization of mare quijuana in the u. S. Sayin our companys success is the result of our focus on identifying earlystage Consumer Trends<\/a> and this is another step in that direction. The brewerys big bet highlights the big question if booze and pot go hand in hand or weed kills boozes buzz there has been clear evidence of substitution between alcohol and cannabis in both the u. S. And canada sands says he doesnt see pot as a threat to booze, but if a consumer is going to choose, he just quantities to offer it all. The deal is expected to close by early november, and it gives constellation the option to increase its stake to just under 20 . Wilf, back over to you. The thing that surprised me here, guys, please weigh in, i dont know anything about this market, i thought they were going to buy exposure to edibles or growers or something. The 235fact they want to make drinks infused with cannabis, i never heard of that. Is that a big thing . Are they creating the category is. I mean, the fact is they have a lot of cash in general the fact they went to pot is interesting in itself. Youve been seeing brewers ke ed of dabble in this but theyre trying more with the flavor. Theyre not necessarily theres no thc in it so these would actually have thc but no alcohol the buzz is a little different so youre seeing people dabble in it. It will be interesting to see. I mean, this going into canada really sets the stage and gives them kind of this opportunity to test the market so well see how it goes i mean, theyve got to grow beyond imports here. Theyve really been doing well with the krocorona, the madilo this is the chance. Landon, thank you very much for that we should have asked hersheys clrks ceo about it as well. Noticed you didnt have an opinion. Dont have an opinion also similarly not informed on it. Market performance with 13 minutes to go before the bell, were down 0. 4 or so last time we looked and we improved a little bit, down 0. 3 . The nasdaq is trying to get up to the flat line there the russell 2000 small stocks, small caps down 1. 2 shares of under armour trading down as well today they just had a little pop theyve been down a lot recently up 2. 4 today ahead of earnings tomorrow well debate how to play that stock coming up. Later well speak to hollywood director rob reiner to ask him about the box office slump. How about suburbicon this weekend and whether hed work with streaming Services Like<\/a> amazon or netflix. Stay with us risks and capture o. We enable you to reach Global Markets<\/a> and drive forward with broader possibilities. Cme group how the world advances. Yes or no . Gin. Do you want the same tools and seamless experience across web and tablet . Do you want 4. 95 commissions for stocks, 0. 50 options contracts . 1. 50 futures contracts . What about a dedicated service team of trading specialists . Did you say yes . Good, then its time for power e trade. The platform, price and service that gives you the edge you need. Looks like we have a couple seconds left. Lets do some card twirling twirling cards e trade. The original place to invest online. Art cashin just stopped by to say theres about 350 million to buy on the bell today. You can see that the dow has come back a little bit off the lows we were down 90 points to start the hour off down 68 with ten minutes to go. Shares of under armour climbing higher today, 3 . The company also set to report quarterly numbers tomorrow after the bell shares have taken a hit. Year to date, theyre down 40 . Joining us to debate if this is a buying opportunity, liz dunn from proforma and josh, good afternoon to you both liz, youre bearish on the stock. Lets start with the main reason for that its discounting in this category based on very tough competitive retail environment. Right, its a tough environment. The growth is slowing. Its ver nikes treading water. Adidas is gaining share. I think under armours growth is that growth is starting to slow down. The multiple is contracting. Theyre down 40 year to date you think it still could do worse from here . I think it could do worse from here. I think in the near term we might get somewhat of a relief rally after the results tomorrow, if the results tomorrow arent a disaster i think it could get a little bit of a relief bounce in general, i think the multiple needs to contract. Josh, we heard last week stories it might be pulling out of certain sports like tennis, other outdoors that theyre struggling in. There are others youre pretty bullish on including soccer which is, perhaps, you think people arent focusing on enough. Yeah, under armour made Big Investments<\/a> into soccer with la liga people arent talking about, also mlb, Major League Baseball<\/a> if you go to Little League<\/a>s, even jails, theyre now outfitting prisoners so when they come out and they play ball wait, so youre saying under armours going to its share prices is going to go up because theyre outfitting inmates who are going to go play baseball, what if you think about it, theyre trying to get street cred. Theyre going to prisons. No, no, if you hear if you talk to the average person on the street, they want to the big resistance theyre having is in their fight against nike, people want to be lebron steph curry is their superstar of the nrktsba i think thats a great investment it appeals theyre going high and theyre going low. Were talking to Certain Companies<\/a> where theyre outfitting inmates why . I think theyre doing a lot of things right similar to nike in the 90s i think its a good buying opportunity. Were telling our clients to tune out mr. Market. We think there is good longterm value. Theyre making infrastructure brands think about it, you think halloween, you think hersheys. Okay. If you think sports, no, you kind of think nike and underarmour second when i go to my sons Little League<\/a> games, everybody has under armour helmets never had that before. Go to your old grandpa, overweight uncle, even me when im trying to work out on the elliptical, im wearing my under armour shirts. Do they want you to wear their shirt . I dont know if theyre going for my sponsorship think about super bowl, saw tom brady get out of the airplane. Who was up next to him, giselle. They were in the under armour plane. All right. I think theres a lot of opportunity. I think its a good longterm buy. I think short term theres going to be turbulence. The numbers coming out this week, what are you looking for, what could make you change your opinion on the stock they got in conservatively for this quarter, a little bit pull forward into the previous quarter and push into q4 i think its likely theyre going to lower fourthquarter guidance theyre looking for 20 growth in the fourth quarter, reacceleration i think thats going to be tough to come by given the backdrop. They got cam newton, steph curry, prisoners apparently a growth industry. Thats all fine and good. Seems like theyre reaching a little bit for growth. I dont like things like taking the brand to kohls. I know its a big growth opportunity, its a brand dilution i think it could bounce on earnings i dont think ultimately were going to see this type of growth out of under armour weve seen historically were going to have to leave it there, im afraid an smuthkso ch for joining us. Up next, were coming right back with the closing back with the closing countdown. Making it easier to do whats best for everyones health, every step of the way. You may need more physical therapy. Ugh. Am i covered for that . Yep. Look. Grandpa catch grandpa duck woah ha there you go grandpa. Keep doing that. Get ready, because were helping leading companies see it and see it throughwith digital. Stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders<\/a> connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. Show of hands. Lets get started. Who wants customizable options chains . Ones that make it fast and easy to analyze and take action . How about some of the lowest options fees . Are you raising your hand . Good then its time for power e trade the platform, price and service that gives you the edge you need. Alright one quick game of rock, paper, scissors. 1, 2, 3, go. E trade. The original place to invest online. Lets have a look at the major indices. We are off the lows. Were down only about 0. 3 or so now having been down the best part of half a percent during times in the session as you can see. Nasdaq down just in positive territory. The russell 2000 still lags. Small caps suffering because of the tax reform talk. We look at the sectors, telco suffering. Of course we spoke earlier about sprint and tmobile and whether that deal wont come through down 1. 6 . Real estate doing well technology is also doing well. If we split to the dow movers, apple is at the top, up 2 on talk that sales of iphone x could be going well. They report later in the week. Right at the bottom is merck, of course, issues with their drug key truda. Lets join bob pisani. Important thing, tax cuts spread out over several years, fiscally, the very responsible thing to do. The market didnt like it. Lost seven, eight points the yield curve flattened, the dollar fell a bit. Sarah sanders did come out in the press conference for the president , said this was not in the president s plan, hes not phasing in tax cuts. A little ambiguous about whats going on here. Oil, eightmonth high. I think its important opec talking about, saudi arabia talking about extending the tax cuts we had a lot of volume in big Exchange Traded<\/a> funds around energy, vanguard energy, oil services, production all had big, big volume. People were getting in on that remember, burned badly many investors throughout the middle of the year burned as oil kept moving down tried to buy bottoms, they couldnt this time talking maybe 55 is really sustainable at this point. Oil up some 4 last week. We want to point out the retailers, another horrible day. Downgrades over at citigroup tomorrow well hear from aetna, by the way id love to hear more about the cvs whats going on, if anything indeed, the dollar has also done slipped a little bit thats it, though. Ringing the bell is hersheys, at the nasdaq texas independent producers and royalties association. Thats it for the first half of closing bell. Kellys got the second thank you, wilf. Welcome to the closing bell, everybody, im kelly evans down day on wall street. The s p shedding about eight on the bell russell 2000 big decliner of the day. The nasdaq ever so slightly lower, almost into the green today after its best day of the year on friday of course the nasdaq composite below 6,700. The dow at 23,349. Dow and s p snapping a threeday win streak. Goldman sachs losing ble ii billions in trading revenue since 2009 focused on ramping up private equity investing and initiatives to help counteract the losses. Alison mass, global head of goldmans Investment Group<\/a> is going to join us to talk about the trends in her first ever tv interview. First as we get under way today, today were unveiling a brand new segment the rapid recap, well get you up to speed on the biggest interviews and most important story of the day here on cnbc home builder lennar buying rival cal atlantic group. Home builders and the utilities are the two strongest, two strongest areas when you look at the charts david, lennars been on fire. This is about building scale and localized markets. These are markets that we know, products that we know. Its not easy to do tax reform especially if youre eliminating loopholes. I believe this, the simpler the better i dont think we should finish people for being successful. Republican lawmakers are considering phasing in the reduction of the Corporate Tax<\/a> rate to 20 . Manafort and his protege, gates, indicted by a federal grand jury on 12 counts including conspiracy against the u. S. , conspiracy to launder money. The president tweeting in response to Paul Manafort<\/a>s indictment this morning, sorry but this is years ago before Paul Manafort<\/a> was part of the ku Trump Campaign<\/a>. Headlines out of nikkei, japanese News Organization<\/a> saying softbank is now calling off talks to merge sprint and tmobile together. I am told bypeople close to softbank that is not true, that there is not a plan to withdraw from the merger talks. Joining any on the panel today, we have cnbc senior markets commentator michael santoli, along with dennis burman, financial editor at the wall street journal and Karen Finerman<\/a> joins us at post 9, president of metropolitan capital. Welcome to everybody, with a quick look at todays market, lets start with the dow closing lower as we mentioned by about 85 points there. Off the lows of 103. But did turn lower in a big way on reports republicans are considering that phasein of the Corporate Tax<\/a> rate cut todays dow winner, apple up 2 . Biggest loser was merck down 6 . The s p, mattel came out as a big winner up 11 . Amd down 8 today making tha michael, a lot going on. Awful lot going on. I think the tax reform headlines were a little bit of an excuse to take another leg down, but broader more broadly speaking i think weve actually been pulling back for a couple of days fridays buying panic in the big tech stocks covered up the fact most stocks have been gently pulling back, gently consolidating. I think thats okay as we reach new highs here i do think that people are on alert. Seems like a lot of targets have been hit on the upside and maybe want to think about taking off some risk as you get to the end of the month. We also had apple today as we mentioned, best performer, up 2 on the dow after hitting a new intraday high, highest level since september 1st, comes on the heels of a big tech run friday investors and analysts are anticipating q4 results after the bell thursday. What do you make of apples performance . I think it was just euphoria that we see sometimes into these new the launch already happened but the actual phone delivery starting. I think this quarter were going to have no idea really what strength will be for the x so i dont know that this quarters that important i think it will be very important to hear what they say about deliveries, what they say about are there in troubles with production . You know, theres a lot of stories you hear, probably 94 of them are not true you got to figure out which six are. I cant do that. I dont know, i didnt want to own it into the launch it follows always follows that buy the rumor, sell the news sort of thing now i feel like, okay, now its alltime high, a little too high for me right here. Just sit on the sidelines. Dennis, whaut about you . Hey, we dont know even how the iphone 8 is doing, essentialserg certainly reports its not been the smoothest of the launches. Kelly, when you look at people on the streets, what theyre doing, how theyre spending their lives, all life is mediated through the phones. You probably cannot underestimate the power of these devices in our lives, therefore, it might make sense to be excited about the iphone x launch. Certainly slia big week for app apple. An earnings alert for mondalese. The stock is moving on the upbeat report, 57 adjusted on its bottom line versus the expectation of 54 cents. Revenue coming in above expectations at 6. 53 billion versus the street expectation of 6. 45 billion. Irene rosenfeld, chairman and ceo of mondelez says were pleased with our improving ref move growth driven by strength of power brands, continued momentum in emerging markets and europe just breaking down regional sales, net sales in north america, 1. 78 billion, slightly above estimates. This is not just a story about emerging markets, kelly, clearly north america also doing well. Also just point out mondelez sees fiscal year 17 Free Cash Flow<\/a> at about around 2 billion. Shares are up about 3 kelly . All right, seema, thank you by the way, dont miss an exclusive interview with outgoing mondelez ceo eileen rosenfeld tomorrow at 10 00 a. M. On squawk on the street. Michael, what do you make of these numbers . Firmer than expected. A little bit of a sigh of relief, basically the stocks after hours on the response to the report recouped todays losses did have people bracing potentially in a weak group for something maybe a little bit more disappointing. Karen, how would you read this whole thing i mean, we spoke with hervy l sy last hour, ceo rang the bell, of course mondelez tried to buy the company. Wouldnt do it is there talk of son sconsolida across the sector . Clearly the sector is challenged we all know i think its just going to get more challenged. Mondelez is sort of the cheapest of the bunch but didnt jump out at me as really cheap and certainly not on a cash flow basis, either. Nice for her to go out on a high note wonder if she wanted wanted a high note. Yes to the extent one can make a high note happen, maybe its a good time to do it i think youre right, though, a relief that it wasnt worse. And dennis, does this mean now mondelez is up 5 after hours and you know, again, theres meanwhile, talk about hersheys maybe looking at the u. S. Business of nestle to try to bulk up and maybe kind of fend them off. Again, how do you read all of this well, i tell you, its very interesting, you look at the carnage across the entry, Procter Gamble<\/a> in the u. S. , all have thoshown poor revenue growth, weak margins and market share. For the perspective of any one of these Companies Beating<\/a> expectations, obviously the market is going to respond a bit more positively than any other situation. So from the perspective of consolidati consolidation, though, kelly, all bets are off i think over the next five years youre going to see massive reordering of these portfolios simply because they dont make economic sense right now theres going to be a 3g in there, any other players. Hershey has an advantage because its hiding behind the motive. Its foundation it can do what it wants but not have to respond in kind. Yeah, its very strong. Michael, its interesting to me a lot of these Companies Still<\/a> trade at valuations and some ways higher than the tech sector. Yes. The tech sector is only trading at 18 times next years earnings many of them are. Thats getting bled away, though if you look at these stock charts, basically mondelez is back to a market multiple, still not cheap, definitely will hi not cheap relative to the story was always theyre defensive, but theyre defensive until theyre no tht. Consolidation will probably happen not from a point of strength but potentially weakness. Is speaking of go ahead, dennis. Kelly, we have to remember rates as well. These are decent dividend players. Their attraction obviously diminishes somewhat, too. Amd has been moving the other way a little bit lately. Shares closed down another 8 , this was after Morgan Stanley<\/a> cut its rating from equal weight to underweight it expects cryptocurrency mining and game console demand for amds graphic chip business to be cut in half next year karen, i naught it was intereths interesting about the crypt ocurrency. What do you think of it . Cryptocurrency mining is growing. I dont know i was never abiliable to tell how much the end user was actually a crypto miner. Right. I dont know. That was sort of interesting to me on a day that bitcoin, you know back over 6,300 i think it closed not quite there. Not quite there. To your point, would it help if amd provided any clearity it can about the end user if they were more specific . Yeah. I dont know, some would say, no, we hate that business. Right. Because we think its going away think its going to zero. Looks like a fad stock in that case to a lot of people i think the bigger takeaway from the downgrade today was thats, you know, their core, core business, right, of microprocessors, outside of gaming consoles, outside of cryptocurrency looks like its not all that strong and they kind of were, you know, had a few things in their favor that are maybe expiring right now and the stock never looks cheap. Its a company that kind of operates at break even. Intel, dennis, meanwhile, put up good numbers last week. Great numbers and the stock responded in kind within the last week. Rather incredible oneday gains for intel as well as other take companies, kelly from my perspective, theres always a little bit of mystery on these Analyst Reports<\/a> i do not know the answer i will say that. Theres a little bit of mystery. Does the company want to get that message out there in some subtle way perhaps through an analyst to condition the stock for what might be not an ideal quarter . I dont know the answer, but thats the kind of thing they were so strong in the Morgan Stanley<\/a> report kind of got me thinking that might have been the scenario there. Yeah, what were you going to say, karen i love that readthrough i dont know if its true. That does it is how it works sometimes. Want to get the story out, soften the market up for what might be coming. Well see. Meantime, shares of tmobile and sprint closed lower today following reports that softbank is calling off a potential merger between the two companies. Our own david faber reporting while there are issues with discussions of governance and price, his sources say the deal talks are still ongoing. Dennis hey, theres one thing thats falling with rapid pace in terms of consumer prices, that is mobile telephone services. These companies have to even know theyre drawing market share from verizon, at t, they have to stabilize this pricing dynamic. I just view it as a bump in the road we will forget this story on the day they announce their deal so youre saying its wait, wait, wait, so let me get this clear because i thought you guys were saying that, you know, softbank is looking at this twice and so youre saying you think its definitely going ahead no, im not saying its definitely going ahead all im saying is in my view, this is a negotiating point. These Companies Need<\/a> each other too much for these things to totally fall apart so it might be the case now, but long term, the logic is too strong for them not to go for a deal. This may be the fourth attempt that we know about over the past several years. See, all the need more to do it. Right but dennis, you could say, well, its eventually going to happen and not going to help you to know exactly how this round plays out, but look, well see obviously its not been an easy negotiation because the whole world knows that these companies have a rational basis for being bolted together, but just hashing out the details has not proven to be very easy. Mike, can we put the question to you, does this deal get done or not i think ultimately it should. I honestly dont know, though, without kind of knowing anything thats going on in the room as to what the hurdles are. Dennis, can we put you on the spot i dont know what the details are going on in the room, but just in terms of Market Dynamics<\/a> it sh. I dont have a team of m a reporters at my disposal, dennis. Yes, you do you have a whole colleague whole room they dont answer to me. I think industrial logic says these two companies have to find a way to make it happen so im going to vote yes. All right. Lets move on. Paul manafort, former Campaign Chair<\/a> to the Trump Campaign<\/a> indicted earlier today on 12 counts related to Money Laundering<\/a> wifl hhich has ties e properties he has in new york. Robert frank has the details. Kelly, over 75 million in oversea money flowed through Paul Manafort<\/a>s accounts, 18 million of that was laundered and concealed from the government thats according to that complaint today. Now, heres how it worked. In at least three cases, he funneled millions from an account in cyprus, used that to buy properties in new york and virginia for all cash under llcs then took mortgages on those properties to extract cash or buy other properties now heres an example. In 2012, he channeled 2. 8 million from accounts in cyprus to an llc called nc soho that then bought a condo in soho here in new york he rented out the property for income but got a 3. 1 million mortgage on the property by falsely claiming it was a primary residence. In the same year, he wired 3 million to an llc that bought a home in brooklyn for all cash. He then got a 5 million loan to renovate the property but instead he used the proceeds to buy another home in california and pay down a previous mortgage so what you have here is they yu used funds from an undeclared offshore account, bought real estate under an opaque llc then extracted cash without declarin any of the income, the proceeds or the origins of that cash. Thats where its Money Laundering<\/a> hell be forfeiting properties in the hamptons and virginia as well as those properties in new york manaforts attorney, of course, saying today that all of these charges are, quote, ridiculous guys, back to. You. Tangled web there, thank you very much. Karen, from an investor point, how much two ydo you have to Pay Attention<\/a> to everything going on with the indictments and separately today, news that came out about whether these tax cuts may be implemented with a big delay . Right. Whats the relative importance of those things for the market. They did sort of let us know this was going to happen, known for a few day, the big game, who would it be . This isnt so shocking its m manafort if its contained where we are now, i dont think it matters at all. Closer and more recent, during the election, i think that could really have an effect on the negotiations, you know, the tax negotiations this interesting today, though, this phasein, i dont know if this was what were kind of mutually agreeing on or was it in negotiating well offer this up because we cant get what we want i dont know if we should look at it that that was progress or not. What do you think clearly the market didnt like it. Shows you the people writing the bill are looking at the menu of options to try to find revenue for those people who think we need to find revenue. This is one of those ways. Look, you can downscale the impact of the corporate rate, revenue goes down because of corporate rate cuts or find revenues i think it is part of the give and take of what are we going to how much are we going to pay, do we have to be specific about how were going to pay for it or not . Dennis, is this a way, what you guys are saying, to get democrats onboard, if you know theyre going to lose a couple of republicans seems hard to get some democrats onboard with graduated phasein which amounts to maybe 24, 36 months. I think any democrat who breaks ranks in this situation is going to have lot to answer for. So, in my mind, the question is, getting those republicans in hightax states really to sign on thats much more about the personal income tax than the Corporate Income<\/a> tax Corporate Income<\/a> tax is not a huge percentage of overall federal tax revenues real game is in the personal income tax Pay Attention<\/a> to the potential changes of the 401 k deductions which is apparently still on the table. I think theyre kind of biwie eyed we hear it going back and forth, we know it was floated they might bring that cap way, way down on what you can contribute to the 401 k . The president , himself, came out and said, no, thats not happening. Where do you think things stands now . People involved dont know where it ends. If i had to guess, just a guess, kelly, ends aeventually say, hey, i fought for your 401 k and gets rolled back as part of his demands. Move deduction down from 18,000 to 2,400 is a tough pill to swallow. Its setting up so trump can be the hero thats my guess. All right dennis, karen, thank you very both for joining us. Private equity fundraising is on track for a record year. Weve got the woman in charge of goldman socks private equity clients, alison mass in her first tv interview ever. Director rob reiner will talk to us about streaming sites like netflix, how theyre changing the Film Industry<\/a> or if hed be interested in directing a show or film for the small screen. And we want to hear from you, share thoughts about the show via twitter, facebook, or send us an email. Youre watching cnbc, first in business worldwide when it come, 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, its our expertise in finding this kind of insight that has lead us to become one of the largest investment and Wealth Management<\/a> firms in the country. Discover how we can help find your unlock. 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 private equity accounted for more than 31 of deal transactions in the Third Quarter<\/a> of this year thats according to pitch book now, more banks are ramping up their own private Equity Investments<\/a> in order to off set some of the declines theyre seeing in trading revenues joining to talk about this, alison mass, cohead of the Financial Sponsors Group<\/a> and Investment Banking<\/a> division at Goldman Sachs<\/a>. Joining us at post 9 along with leslie picker, our expert in this space glad you both could be here. Alison, how strong is the environment right now . Its interesting that valuations are so high. How is that having an impact thanks for having me. The environments really strong, and what weve seen, you mentioned 31 in the Third Quarter<\/a>, but for year to date, actually, sponsors have accounted for 33 of overall m a in the environment, and i think whats normal how does that stack up over the last 15 years, i think it was 20 over the last five years, it was about 25 . Wow. This is an increasing percenta percentage it makes sense it makes sense because there are so many more private equity firms. We cover at Goldman Sachs<\/a> 600 private equity firms around the world. And they control between 5,000 and 6,000 Portfolio Companies<\/a>. Wow. So its 2 trillion of enterprise value that they control. And it makes sense because theres a lot of dry powder out there and the Capital Markets<\/a> are in a good place to do transactions michael, i dont know about you, i think about how this would be a great time to exit a private equity investment. I guess i wonder about how that filters into what future return expectations are for private equity, in other words, what are your clients expecting relative to what private equities delivered in the past given its a very popular space and all the money thrown at it one of the interesting things about the private equity space which is why its a record fundraising year is that returns have outperformed public indices and every major market. Wow public indices have done very well correct and over the short term, medium term and long term, so their return expectations are fairly robust which is why capital keeps going into the market. Leslie, what do you make of the proliferation of private equity firms and their expectations the returns going to be so high . Is that possible i think its interesting because you look at whats going on with apollo with raised its Record Buyout Fund<\/a> this year cvs raised a Record Buyout Fund<\/a> for europe you have to wonder given what were seeing in the hedge fund community, how is there such a dispersion with the private equity counterparts in terms of their ability to raise money i think allison brings up a good point in that were starting to see a lot of this fundraising centered around these returns. The question as you brought up was, you know, what does that mean in terms of your traditional buyout strategy . How is the how is the private Equity Community<\/a> transitioning to account for these high valuations and being able to generate and keep up with the high returns that theyve experienced over the last ten years . Well, the industrys having to become a little bit more creative and talked about what percentage of overall m a is done by the private Equity Community<\/a>. Only 7 of that year to date has actually been in lbos. While 50 has been on the buy side about 50 on the sell side and knave htheyve had to be moe creative had to use own Portfolio Companies<\/a> to do acquisitions like aventure. Theyve sold minority interest or purchase minority interests they partnered with strategics the way theyre generating these returns is being a little more creative and theyre going to have to continue to do that in the kind of environment where we see enterprise values at close to 12 times in the Public Market<\/a> which is pretty high. Any concern when they first started talking about Corporate Tax<\/a> overhaul, theres a question about whether they would change the carried interest taxation rules. Is there anything there that you guys are on the watch for obviously Something Like<\/a> that could have a huge impact on the industry, but it sounds like thats been taken off the table. Well, i want to comment on whats going to happen or not going to happen in tax reform. Our clients in the market are watching it very closely for the private Equity Industry<\/a>, obviously, deducductibility of interest, Corporate Tax<\/a> rates all will play into it. The pluses and minuses will balance one another. As of this moment, we havent really seen any change in behavior on the part of our private equity clients a big topic in the private Equity Industry<\/a> these days is that of succession we saw carlisle announced its successors, kkr in july announced its own successors what does that mean for the private equity entindustry when youre seeing founders, grandfathers and fathers of the industry step aside . Can private equity continue its momentum, you know, with the stuck session plans that are in place . Its a good question. Its a topical question. Its a relative question the industry only started 40 years ago which to me is young and you have seen success already over the course of the last several months, youve seen new succession announced and will see some more its a very Natural Evolution<\/a> of this industry when the founders are in their 60s and 70s so to me what it says more about is the culture of these firms. And the vision that the founders have had to pass down to the next generations and these firms have evolved from single asset Class Private<\/a> Equity Investors<\/a> in the u. S. To multiasset class alternative Asset Managers<\/a> that are global, many of them are public. I think what youre going to see is these firms thrive well beyond their founder or two or three founders alison, we know youre super busy thanks for taking the time. Thanks for having me. Alison mass along with our own leslie picker. Appreciate it very much. Mondelez shares getting a pop after reporting better than expected earnings earlier this hour ahead, whether hopes of consolidation are impacting this 4 jump. First, chinese investments in the u. S. Could soon be facing tougher scrutiny thanks to a new senate bill in the works well have those details when we come right back. The nfls National Anthem<\/a> protests arent just taking a toll on the networks the surprising company also feeling the ratings pain is next mike and i are both veterans, both served in the navy. I do outrank my husband, not just being in the military, but at home. She thinks shes the boss. She only had me by one grade. We bought our first home together in 2010. His family had used another insurance product but i was like well ive had usaa for a while, why dont we call and check the rates . It was an instant savings and i shouldve changed a long time ago. Theres no point in looking elsewhere really. Were the tenneys and were usaa members for life. Usaa. Get your insurance quote today. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i got a Medicare Supplement<\/a> insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement<\/a> insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement<\/a> insurance plans, it could save you in outofpocket medical costs. Call now to request your free decision guide. Ive been with my doctor for 12 years. Now i know ill be able to stick with him. [ male announcer ] youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. See why millions of people have already enrolled in the only Medicare Supplement<\/a> insurance plans endorsed by aarp. Dont wait. Call now. Welcome back lets get over to meg tirrell for a market flash here. Meg . Hey, kelly, were looking at voyager therapeutics, down sharply in the after hours on the announcement the companys partner decided not to opt in o the rights to a parkinsons Disease Program<\/a> and gene therapy. That stock down more than 15 now. Voyager says its going to have a Conference Call<\/a> at 4 po 30 and have an ongoing relationship saying essentially their understanding is because the partnership didnt include the u. S. Rights to this potential drug, sano ifi decided not to o in back to you, kelly. Wow 15 drop meg, parkinsons, who are the other companies doing sort of focused in this space . Well, its interesting because voyager is taking a gene therapy approach to this space what a lot of companies have worked on really are symptomatic relief for parkinsons, this would actually be a different approach to it so voyager is one of few Companies Really<\/a> working the space. More companies are starting to work in parkinsons, kelly. All right well see what they have to say. Meg, thank you very much again, voyager down 14 on that news. Time for a cnbc news update. Lets get to sue herera. Hello, kelly, hello, everyone heres whats happening at this hour former Trump Campaign<\/a> manager Paul Manafort<\/a> leaving court after pleading not guilty along with aide rick gates to a 12count indictment. The white house distancing itself from the two. Press secretary Sarah Sanders<\/a> insisting the indictments will have no impact on the president s agenda todays announcement has nothing to do with the president , has nothing to do with the president s campaign, or Campaign Activity<\/a> the real collusion scandal as weve said several times before has everything to do with the Clinton Campaign<\/a>, fusion gps and russia u. S. Special Operations Forces<\/a> captured a militant who was believed to play a key role in the 2012 attack on a u. S. Diplomatic compound . Benghazi, libya, which killed the u. S. Ambassador and three other americans. U. S. Official es identified the president as eliman. Army Sergeant Bowe<\/a> bergdahl apologized in court to all the military personnel who were wounded searching for him. He faces life in prison after pleading guilty to desertion that is the news update at this hour kelly, ill send it back downtown to you. Sue, thank you very much. Lawmakers in congress are set to Kayla Tausche<\/a> is in washington kayla . Reporter were expecting the bill to come out of the senate and house this week that would ratchet up scrutiny on u. S. Investments made by Foreign Companies<\/a> and foreign nationals by widening the net cast for the type of deals that would require a strict regulatory review the scope of this review cahas been unofficially increasing over the last few years but the bill set to have white house backing would have stricter rules for joint ventures, min minority stakes, real estate, infrastructure and technology investments. The bill doesnt mention any countries by name, it was written with russia and china in mind its the latest in a long list of grievances the u. S. Has aired with china the Commerce Department<\/a> on friday seeking tariffs on aluminum up to 162 . Tomorrow, a trade panel will consider solar tariffs and actions on steel dumping and intellectual property penalties are being eyed on the other side of the president s trip to asia which begins in a few days with hawkish tones ramping up despite the absence of steve bannon and despite politico reporting that peter navarro, a wellknown china hawk will not be attending the trip. Inside the administration, top t trade officials Bob Lighthizer<\/a> and ross are carrying the torch as well as malpass its an interesting move with all this coming to bear before the president s trip, well see how this all plays out on the ground back to you. Weve already seen the pressure on the chinese side as well questions about whether the waldorfs actually going to g renovated and maybe going what further impact would it have if the u. S. Puts more pr l pressure on our side against china doing deals. We know china has usually been known to take a retaliatory approach when the u. S. Takes very tough actions against certain sectors or Certain Companies<\/a>. Its unclear how the chinese would choose to respond this time around or if the two president s when they meet would be able to smooth things over. Kelly, you mentioned the waldorf. I wanted to point out particularly what this bill would do for real estate in the past, it would only deal with real estate near military bases. This would deal with any location which some say could be a Federal Reserve<\/a> bank. Kayla, thank you very much. Kayla tausche. Time for our takeaway segment. We begin with major changes that could be coming to how the s p sorts itself by sector as noted over the weekend, a new Communications Services<\/a> sector ma i be coming that would include the stunted Telecom Group<\/a> and social media and Search Engine<\/a> companies. Heres my question if facebook is moving to the new sector, what does that mean for all the sector etfs . You know, im sure each one of them has some kind of provision for what theyre allowed to cover a lot of them are not necessarily just the exact s p sector as defined by the Index Provider<\/a> but i do think what it will do is kind of refocus our view as to how big technology, per se, is, in the s p right now which looks huge right now. Looks huge. 25 or so of market value and earnings on the other hand, amazon is not you have to kind of have these asterisks out there. Naern anyway, i do think its overdue to get this weird tag end stunt if they make a move like that, announcement could come as soon as november, huge implications for all the money in the sector, too. Next, papa johns sales have been sliding since trump encouraged people to boycott the nfl in late september according to sports business journal. Nfl spokesman joe lockhart confirmed they heard concerns from papa johns and others they signed a Multiyear Partnership<\/a> with the nfl texans, after insulting comments by their owner what options does this leave the nfl . What options . Beyond what they already conclu concluded, not going to stand in any ridged way do they have to accept that maybe a certain number of viewers arent going to be in for it what happens if the sponsors like papa johns its so mixed up in the br d broader trends in terms of lower tv viewership and all the rest of it. Would have to be more than one sponsor making a fuss. Theres papa johns shares down 11 in the last two months. Finally elon musk has given us a look at the tunnels his company is drilling below los angeles. Unless youre frustrated by the model 3 bottlenecks. We also had the falcon rocket launch again by spacex. Should musk be focusing more or all his attention on tesla right now . Ive never been one of those. Who thought there was this tiny finite ability very large complicated Companies Run<\/a> by one person this, though, i think gets to a level of how much, you know, lobbying of Public Sector<\/a> entities does he have to do to try to get this done how much of his real energy is behind it . And is tesla potentially in its production challenges suffering, you know, at the expense of this do they need more leadership focused executing the plan for tesla potentially. On the other hand, i dont know how long the section of tunnel thats completed is. They can rent it out as a move industry set being able to actually dig a tunnel for a short length of time where you have the rights to it is not really in question. Use the model 3 as an excuse, theres reports about Different Girls<\/a> he was seen out with in page 6, he said, no, no, im focused exclusively on model 3 production. Yeah, that remains to be seen look, i think the other thing tesla suffers from from an investment point of view, the whole company is a trojan horse to get the whole world on Battery Power<\/a> as opposed to build cars. Monde willlez, its down 11i year, but there you can see it up about 4 after the bell could the report help turn the tide quhoo were going to find out next. Hollywood, ahead, rob rein h er tells us whats responsible her the box office slump and whetit can be turned around with his new film, lbj. Stay with us so what else is new . Hows your mother . Umm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan<\/a> and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. Today, a focus on innovation in the Southern Tier<\/a> is helping build the new new york. Starting with advanced manufacturing that brings big ideas to life. And cuttingedge Transportation Development<\/a> to connect those ideas to the world. Along with urban redevelopment projects worthy of the worlds top talent. All across new york state, were building the new new york. To grow your business with us in new york state visit esd. Ny. Gov. To grow your business with us in new york state my name is jamir dixon and im a locafor pg e. Rk fieldman most people in the community recognize the blue trucks as pg e. My truck is something new. Its an 811 truck. When you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you dont hit them when youre digging. 811 is a free service. Im passionate about it because every time i go on the street i think about my own kids. Theyre the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then ill drive it every day of the week. Together, were building a better california. Welcome back a down day to kick off the week here the dow dropping 85 points s p down eight the nasdaq was just down two, but the russell was down 17. That was more than 1 declines a lot of this took place today after reports that the gop tax cut may be phased in several yea years time. Shares of monde will l erleg higher last quarter where ceo rosenfeld will be at the helm. She spoke week at cnbcs event last week about her upcoming retirement. Consumer business is a very rapidly changing one its i think theres real value in continuing to renew the blood and so i had talked with our board a couple of years ago about my desire to retire around the tenyear mark. We werent really explicit about exactly when that might be but it felt like that would be the right time to turn the range over to someone else joining us now, Jonathan Feeney<\/a> from Consumer Edge Research<\/a> who has an outperform rating on mondelez and kevin from Washington Crossing<\/a> advisers. Welcome to both of you jonathan, what do you think about her final quarter as ceo, what is it saying to you right now . Very good after they threw a curve ball at us with a cyber attack distribution they answered the critics with a solid quarter this quarter beating on sales and the bottom line back to where they were at the start, and still down for the year what do you say . We saw a company beat on. Terms of overall profitability. Its really nice to see pickup on the top line which has really been missing jonathan, what are the Strategic Priorities<\/a> you want to see with the incoming ceo in terms of i mean, is it still just about play defense on the legacy brands, and then buy those brands that maybe have a more uptake among millennials . That seems to have been the play before look for bigger m a . What else is is there to be done i focus on a couple things. One thing that makes mondelez, they have a great Market Portfolio<\/a> and products that really travel. Everyone loves candy oddly, the day before halloween, the world over, everyone loves candy. Lot of business exports 30 , 40 of their business. As far as developed markets go, north america, they need to take a hard look perhaps at their cost structure leading competitor, kellogg, divested our wound down their direct store Distribution Network<\/a> and going to market in a less expensive way thats one of the moves or Something Like<\/a> that move that mondelezs new ceo will take a look at. Kevin, its not about getting into the cannabis business like everybody else these days . No, but i do know i do know that in h my house, ive got a couple young kids and i do know the drawer where all of the oreo cookies live and all the rest of it so there is a there is a fantastic brand there that as the other guest mentioned does travel and has a tremendous value to it. Its just a question of unlocking that value going forward, and i think a lot of the woes that confronted the company in the top line have really not been of their making so as we move toward its ceo transition, the new ceo when he steps in is going to really have to focus on outlining how to get that top line growing especially overseas all right guys, thank you both kevin, Jonathan Feeney<\/a> joining us to talk mondelez. Dont miss an exclusive interview with outi going ceo Irene Rosenfeld<\/a> tomorrow at 10 00 a. M. On sqsquawk on the street. More people are turning to the small screen for original shows own tvs. Coming up, rob reiner joins us with whether or not hell make the move over to streaming stay with us hey steve check out this guys leg. Yeah looks like a real nasty moving back in with his parents. What . No. I just broke my leg. No, this is a full blown move in to the basement, youre gonna be out of work without that money from. Aflac you might miss your rent. Aww i just moved out. Bummer man. Hey i used to have my own place. Yeah . No, no i live with my mom, but its cool. Health can change but the life you love doesnt have to, keep your lifestyle healthy with. Aflac well, itsonce again. Eason yeah. Lot of Tech Companies<\/a> are reporting today. And, hows it looking . I dont know. Theres so many opinions out there, its 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. Thats alright. I got a box of em. Thousands of opinions. One estimate. The earnings tool from td ameritrade. This is not a cloud. This is a tomato tracked from farm to table on a blockchain, helping keep shoppers safe. This is a financial Transaction Secure<\/a> from hacks and threats others cant 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. Up next, actor and producer rob reiner will join us as he makes his way right over here on set of the new york stock exchange, talk about his latest film lbj and the business of ckco rhtd when we meig ba not rebalancing your portfolio. Focused on what you love, not how your money will last through retirement. We make it easier to plan for retirement with day one target date funds from prudential. Look forward to your 401k plan. Our next guest is a twotime emmy award winner, five him golden globe, oscar nominee, a star on the hollywood walk of fame the list goes on rob reiner is now out with the movie lbj. The guy himself joins us at post 9. But youre a successful investor, apple, amazon. I dont know what im doing i figure those sound good. Apple, amazon, those are good, but i got in early, so maybe i got a couple bucks. Have you talked about them making content well, amazon is making content and now apple is putting a ton of money and google. Everybodys making content now, which is great for people like me, who like to tell stories. Have you engaged with them . Not yet, but i will i actually met amazon recently about a tv project and netflix theres so many platforms now. Are they willing to pay like crazy money . They pay good money. But not crazy money. No, not crazy money, but good money. The kinds of pictures i make, not the once you see in movie theaters with big explosions and the kind of pictures i make, they pay pretty good. Why not distribute lbj through one of them. Because we have this Wonderful Company<\/a> electric, theyre doing an amazing job have you seen it jet yet. There are screenings, dont you rate ill be perfectly honest. I havent seen a lot of movies i dont think theyre very good. Im talking about a lot of hollywood, but suburbicon. It tanked the box office seems broken. Its tough for independent films to do well, but some of them break through every once in a while you have a breakthrough this one youll see Woody Harrelson<\/a> like youll never seen hes absolutely incredible people say, Woody Harrelson<\/a>, lbj . Wait until you see it. Youve had several people portrayed lbj . Different phases. Yeah, bryan krantz tron on hbo. And broadway, and hes great, but wait. Im sort of fixated with whats been happening at the box office it was a bad summer, and another bad weekend, then another bad weekend. Is hollywood permanently broken. Is there a culture problem there just a what is it it seems bigger than just a bad year. You know what happens, the way in which you exhibit product changes, it keeps changing there was a time when dvd was a huge window and great opportunity. Now that died out. All of a sudden streaming and video on demand. All those things change. So what happens in the box office in the theater . There may be only pictures that, you know, like mick the joke the word man and a number in the time spiderman 2, ironman 4, whatever but the adultthemed pictures, they may find their ways onto netflix or amazon or, you know, different ways, but to mehmet im a storyteller. I just want people to see the film. What are you thinking about doing a political movie, or at least politics, when everyone seems to have blinders on and only want to look at what you agree on some of the history we thought was settled thats whats interesting about this movie, given the political landscape, we are seeing a functioning president and a functioning government, and were seeing how it can be done and like you say, the theme of racism, all that, its bubbled back up to the surface so that becomes, you know, a part of the conversation again, but i think people are going to like the film. When you see it, it gives you hope for what we can aspire to as a government. It seems broken now, but i think it can get back on track at some point. Sort of going back to the hollywood issue, what do you think the Lasting Impact<\/a> of what happened with weinstein is going to be. They did a lot of independent movies, and it sounds likes the company has massive financial problems, and every day brings a new allegation about some person of interest in hollywood. I think ultimately i dont think its going to have a tremendous anegative impact on the business of hollywood, but i think its having a huge impact on the National Discussion<\/a> of sexual harassment. Weve seen it we saw it at fox, we saw it the other day with mark halpeperhalpern, even clarence thomas. Ive never talked to a woman who has some version of harassment you see why women wait so long either theyre not going to be believed, theyre going to say they asked for it, or theyre going to be punished if the president of the United States<\/a> can come out and say overtly he sexually harassed people and still gets elected, what avenue do women have . Its going to take the men to step up, and women like Reese Witherspoon<\/a> who have been become power figures in their own right, do they drive the production decisions and what impact could that have i hope it has ive been saying this for a long time this has nothing women more women need to be in positions of power, whether in business, in hollywood, or in government women value life more than men do im just saying that. Mike, do you want to respond to that . No, no, they understand what it is to im willing to defer. I have a daughter too they understand the connection to life. This is very important. Do you own netflix do i own i own i dont have any netflix but if they hire a woman to run the whole thing, maybe. Rob, thanks for joining us. Best of luck. Thanks. Apple did hi alltime highs today. Well have much more when we come back. When mother natures done her worst, the only thing that matters to us is keeping the lights on for you. The hard working men and women of the International Brotherhood<\/a> of electrical workers, dedicated to keeping the power on in communities across the country. Because when bad weather strikes, we know what matters most. The ibew. The power professionals. You myour joints. Thing for your heart. Or your digestion. So why wouldnt you take something for the most important part of you. Your brain. With an ingredient originally found in jellyfish, prevagen is now the number one selling brain Health Supplement<\/a> in drug stores nationwide. Prevagen. The name to remember. I cant wait for her to have that College Experience<\/a> that i had. The classes, the friends, the independence. And since we planned for it, that student debt is the one experience, im glad shell miss when you have the right Financial Advisor<\/a>, life can be brilliant. Ameriprise welcome back and goodbye. See you tomorrow. Well hand it off to fast money. Fast money starts right now. Live from the nasdaq marketsite. Im melissa lead tim seemo brian kelly david see burg and steve grasso tonight on fast, is the tmobile and sprint deal in jeopardy . Craig moffett will be here to weigh in later its been a drug best so whats behind the sellout why is one of ourtraders buyin this breakdown first the apple awesom","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia600806.us.archive.org\/35\/items\/CNBC_20171030_190000_Closing_Bell\/CNBC_20171030_190000_Closing_Bell.thumbs\/CNBC_20171030_190000_Closing_Bell_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240629T12:35:10+00:00"}