Some fears over china trade. Retail sails topped expectations in october, climbing by 0. 3 and oil pointed to surging Global Demand in the quarter. Joining us is lindsey bell thanks for joining us. Good afternoon. We mentioned on track for three record alltime closing highs at the moment and also on track for the sixth week in a row of gains for the s p thats a remarkable run. It is absolutely a remarkable run and theres a few things that have gotten us here we have more clarity on the fed. Theyve cut for the third time and theyre willing to maintain the stance where they are right now, keeping rates where they are. The Third Quarter earnings season was very good and weve seen an easing of trade tensions while theres a little bit of uncertainty there, that could rattle the markets going into the end of the year. All things understood, the economic environment though does still feel pretty good. Lets focus on the big stories we are watching today. Kayla has details on those china trade headlines. Elon has new information on twitters political ad policy. And bertha is watching Health Care Stocks. Morgan, u. S. And chinese principals were expected to continue negotiations. No update from the trade representative treasury or the white house on that but as of the end of this week the eve of what was supposed to be the apex summit has now come and has no deal to show for it despite suggesting the two sides were still working towards this weekend as a deadline. White house economic adviser larry kudlow claims theres been no delay but he also wont predict when or by whom the deal will be signed i dont want to put i dont want to hang any numbers on anything. I dont want to hang any numbers on days, dates, days of the week i dont want to put any numbers. You know, the two leaders may be able to put together a signing ceremony both leaders have said from time to time their top ministers could do it. President trump has tweeted frequently that he and president xi will be the closers of this deal and will sign it. Larry kudlow and commerce secretary wilbur ross both in the last 24 hours saying the two sides are close, although we have heard that before. If the market is indeed up at fresh records as it is today because of Larry Kudlows comments, its a little surprising because did we learn anything new compared to his interview on closing bell earlier in the week, anything new and concrete at least . No but the semantics are slightly different the vocabulary is slightly different. Last night after a council on Foreign Relations event he said that the two sides are down to the short strokes, so that is certainly a phrase that he hasnt used before so perhaps we could treat that as new information. Then again some optimism from commerce secretary wilbur ross this morning ahead of a headline to grant temporary licenses or renew temporary licenses for businesses that do business with huawei, so there could be some movement in the next few days, but for those of us who have been following this for years at this point, it certainly doesnt feel like much of a breakthrough waiting in the wings. Hes making good use of his th thesaurus. The dow just 20 points from 28,000 twitter on valg new details about its political ad policy today and elon join us with more in washington on that. Twitter is rolling out its rules for banning political ads on its platform. Obviously that ban is going to apply to ads that are bought directly by candidates, Political Parties and elected officials, but it will also apply to ads that reference political content including appealing for votes and solicitations of financial support. Now, there is a big gray area around issue ads twitter is not banning those its just restricting them twitter will no longer allow targeting of issue ads using zip codes or using key words that are negotiated with political content like conservative or liberal. Guys, twitter said this new ad policy will take effect on november 22 and is not expected to have Material Impact on q4 guidance. Whether its twitter banning or putting tight guidelines on politicalrelated ads or the stance that facebook has taken, is there an impact, is there an effect that investors should be aware of because so far the stocks have for the most part rallied. I think that these companies are still getting ad revenue from other places. This is probably a very small portion of their total ad revenue so i dont think its something they should worry about. Its nice though to see that they are taking a stance on this though and really trying to create clean waters for the political environment that were about to get into in the next Year Health Care stocks on the move this afternoon following a speech from President Trump on new price Disclosure Rules bertha has the details for us. The Trump Administrations new transparency rules would require hospitals to publish patient prices for procedures starting in 2021 investors though shrugged off the headlines, sending the Health Care Sector to new alltime highs a case of not as bad as feared four Major Hospital associations vowed to take legal action hospital stocks moved higher during the president s announcement policy experts note that the penalty for noncompliance is just 300 a day which is not a huge revenue hit for Major Health Systems harder for Smaller Health systems. Health insurers rose as they contended that disclosing their negotiated rates would make it harder to drive a hard bargain with Hospitals Health insurers are up for the seventh straight week. In a sense i think the fear factor on all this regulation has broken, at least for now, with investors some positive moves there, relief moves i guess you could call them. Thank you, well see you later in the hour. We have got just 54 minutes 53 minutes left in the session. The dow is high by 200 points following optimistic trade headlines kayla was discussing, were set for record close Bridgewater Associates found ray dal yoe wayed in at the National Committee on u. S. china relations yesterday. Theres a trade war theres a Technology War there is a geopolitical war, and there could be capital wars. That is the nature of the environment, and how thats approached is going to determine what our futures are like. For more lets bring in larry adam from Raymond James and John Rutledge very good afternoon to you both. Good afternoon. John, you think a trade deal is coming, is that right i think both of these guys need a trade deal. Trumps got an election in a year hes got a softening growth economy. Youve got impeachment hearings, and he needs a win and the win would be signing a trade deal and sending the stock market up some more. Larry, is ray dalio right to think this war is going to be multitiered and its going to extend to other areas Like Technology and capital regardless of what happens short term with ag purchases and other trade deficit related things i absolutely agree. Ray is spot on what weve been telling clients is if you think about this phase one trade deal, while we think that will get done and its very important because it will show some progress and it will serve as a catalyst for the equity markets, the Bigger Picture is what hes talking about and there is not only an economic but also a military technology and Financial Market type of relationship that we need to work out with them i think whats important is that this is going to be around for years to come and if one thing has come from this trade war its that we have to have a cordial working relationship with china because theres really no winners when you have these wars and that was starting to happen with the trade and now that weve got some progress, hopefully well be able to avert those worst case scenarios. Is this potentially though, the phase one part of this deal, given that we are at record highs and we have had six weeks in a row of gains since that Oval Office Meeting where close to phase one sentiment emerged the fact that the market is up 4 in a little over a month, that was a pretty big move swiftly on the back of that news i think the market is expecting that december 15th tariff hike to get pushed out further. I dont know that theyre really expecting tariffs to absolutely come off near term but i think just a continuation of the easing of tensions would bode well for the market but unless you get more definitive or clarity about what the next steps are, its going to be hard to move significantly higher. John, this is very nuanced when you talk about these trade talks and you can make the argument that President Trump has been under pressure in the u. S. Given the fact that were coming into the 2020 election but theres been pressure in she china on xi, right yes, theres a group in china too called the shanghai gang and theyve been arguing for protecting chinese sovereignty, et cetera, so what xi needs is face and sovereignty protection. Thats secret code for hong kong they both need a deal to be done interesting to me is xi has been holding hostage the location of a signing and the personnel of a signing because if you could sign a little bill in iowa, it would be a big help in the elections and the chinese guys know that. Now, on your bigger point, it is definitely clear the rest of the world is figuring out theres going to be two sheriffs in town and theyre no longer going to line up with just one of them. At the davos in the desert meetings where ray dalio and i were both there, there were 6,000 people the prominent groups were china, india and russia they are now looking at a new version of the u. S. Russia split from years ago. And youre seeing that, john, start to play out actually in arms deals right now, right . You see it with turkey, with egypt, the fact that u. S. Lawmakers are now being put in a position where they may have to level sanctions against some of these long held allies listening to comments on though, i wonder do you think this trade war, the enactment of tariffs, this idea of trying to level the Playing Field if you will around things like ip protection, do you think were too far gone, that its irreversible, the point that were at . Some of this trade deal has been in the works for a long time buy more soy beans and protect my ip has been happening in china for the last year, including a new law in a new court in beijing to protect ip and its because they want it, not because were forcing them to do it some of the other things our guys said they want theyll never get, give up on industrial policy, give up on subsidizing stateowned companies which is by the way the welfare system in china, and give up on the tech drive through the one belt, one road program thats chinas foreign policy. Think about a tiny rabbit to pull out of a hat, they can get that done and that will do some amount of good and maybe push back the tariffs as we heard. Larry, switching focus to domestic politics, impeachment proceedings and the election next year, are they a threat to the markets . As of right now i dont really think so. I think if you look at the markets, theres an 80 chance that trump President Trump does get impeached by the house but theres still less than a 20 chance that he gets convicted in the senate. As long as that continues to be the base case, i dont think it poses a big threat to the markets right now. I just wanted to come back to another domestic issue todays data, retail sales good but some disappointing industrial production. Does that continue, consumers strong but the rest of the u. S. Economy perhaps a little bit of weakness i think so and i think were going into the Holiday Spending season and its going to be a strong one consumers might even have a little more money in their pocket as theyve been given the ability to refinance their auto mortgages or loans the good news is the fact that were getting mixed data means that were remaining in this goldie locks economy which pleases investors because that means the fed is not going to turn hawkish all of a sudden they may be moving a little bit away from being dovish but as long as theyre not hiking rates the market is going to be happen. Do you think gdp is too low yeah. I think we could possibly see that move higher its still early on. Larry and john, thanks for joining us. My pleasure. Thank you we are on record close watch for all three of the major averages after the break, Mike Santelli will break down the record run for the s p 500 and how major trade milestones and setbacks have impacted the index in the past. Plus apple hitting new highs this week and jpmorgan says one overlooked factor could signal even more upside ahead thats coming up in todays aymaeton st with us comes easily. Thats what happens in golf and in life. Im very fortunate i can lean on people, and that for me is what teamwork is all about. You cant do everything yourself. You need someone to guide you and help you make those tough decisions, thats Morgan Stanley. Theyre industry leaders, but the most important thing is they want to do it the right way. Im really excited to be part of the Morgan Stanley team. Im justin rose. We are Morgan Stanley. I athere was a sports carre and a family saloon car and i always had in my mind that one day the family car could compete in rallies and racing when the mini actually came out i said this is the one to do it. Through the at t network, edgetoedge intelligence gives you the power to see every corner of your growing business. From using feedback to innovate. To introducing products faster. To managing website inventory. And network bandwidth. Giving you a nice big edge over your competition. Thats the power of edgetoedge intelligence. 43 minutes left until the close. Major averages at record highs heading into the close lets get a check on individual market movers. Shares of far fetch are soaring today. The tech platform for Luxury Fashion saw revenue grow nearly 90 year over year and that stock is up almost 30 Applied Materials is also higher after an earnings and revenue beat the company saw better sales across all segments and highlighted an uptick in chip demand that stock is also up about 8. 5 today. 42 minutes left to trade. Set for record closes on all three major averages lets get to the market dashboard. Heres what we have for you the 3 threshold, right now, the s p 500 is about 3 above its prior peak the 1 is in charge not of society but of the s p the 4 fillip is the pace of nominal retail sales growth, and then the 2 Tipping Point is around a level of Corporate Bond spreads that i want to keep an eye on so 3 threshold right now, s p 500 at 3116. For a couple of weeks now, after we started making new highs, i was starting to point out the 3115 level would represent a 3 bump above the previous high from july right here which is about 3025 theres nothing particularly magical about the 3 number except these prior peaks since january of 2018 have not gotten as far as 3 above the prior one so essentially this is a greater force behind this move in terms of getting a little bit of distance i would also point out, each of these peaks was associated with an escalation of the trade war, the president s davos speech right horror, the mike pence talking about a cold war with china. Each one of those at least in the general zone of when trade went from being a Friendly Force to a hostile one not predicting anything like that because i dont think this rally today is about the hope for a trade deal but clearly when the markets stretch like this it wouldnt take kindly to having a reescalation of those tensions mike, i know youre insanely smart but you know it goes 1, 2, 3, 4. Thats why i have figured out the pattern here and you have to try to decipher it. Oh gosh, youre too smart for us, as i should have expected. Thats a teaser. You have an hour and 40 minutes. Well do our best i have an unbelievable track record of almost never coming up with a theme mike, thank you. Back to the discussion point, lindsey, the record highs, because its taken us so long to really progress meaningfully higher again from the first time we reached that, does that make this less scary, less questionable that were pushing higher again the problem is, to mikes point, the one big risk that remains out there is this trade issue because theres no real clarity or timeline or path to an end state so i think that is still a big uncertainty and we know President Trump with really when the market is going up he feels confident and he can sometimes use that to put pressure on china which in turn makes the deals or the talks or the negotiations fall apart and that hurts the market. Its going to be one to watch. We have 40 minutes left to go here before the bell the dow is currently up 197 points, just a little over 20 points from 28k. The s p is trading at a record high up next though, shares of grub hub have lost half of their value this year but one firm just gave the stock a rare double upgrade well tell you why. Later, the bad blood between taylor swift and Scooter Braun reaching new heights she says shes been subjected to tyrannical control over her music. Well discuss it with charle koppelman coming up here on closing bell. S in the cloud, h . Mmhm. Your employees must love you. Thank you. Ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. So wim searching for info on options trading, and look, it feels like im just wasti