Transcripts For CNBC Closing Bell 20141027

Stay with us as we follow the stories here. Down day for oil prices. Now Goldman Sachs is predicting 75 a barrel. Sometime next year. Consumers win, of course, if that happens but who loses . The list might be longer than you would imagine. Coming up. Speaking of earnings, twitter is out with the results of one hour from now. The stock down nearly 25 this year but its done better in the last couple of months and the ceo is here exclusively to talk earnings and why investors are down on the company this year. Looking for that very much. More developments on the ebola front. Now a 5yearold in new york city is being tested as a nurse in new jersey is shifted from hospital quarantine to home quarantine in maine. Are the latest government actions more about containing the virus or containing the fear that the virus may cause . Well break down how the ebola fear factor could cost state economies. Not so spooky looking across the indexes and going into the final hour, the dow off the five points. Hugging the line at 16,800. S p off by a quarter of a percent and broadly speaking the day is worse on the dow. Every index has you can see there is down about 5 points and certainly oil got the attention today. Before the week is over, more volatility. A great strong week last week. See what happens this week. Talk about it in the closing bell exchange. Anthony chan with us today, winny sun, joe durand, kenny pulcari better known as telly sulva sulvalis. There is a lot to come this week. It is interesting this morning and saw the weakness and the market come down and find support. 1950ish level and found that support, kind of bounced off of it. Testing it. Feels like it wants to be a level where it wants to build a foundation. Talking about that now for a week and a half and rallied back up and through and until it feels like it wants to stay there. 150 earnings this week. The fed on wednesday. Everyones going to be waiting patiently to see whether or not they change their tune. Certainly they withdraw but are they going to leave the door open in the event that the data turns worst . Joe, what about yesterdays stress test results in europe . What did that do for confidence . Whether in europe and the Banking Systems more broadly or the way people will allocate money especially at the end of the month here . I think what you will find is people very relieved that no one is used the weakness in the dollar, the change in oil to adjust future earnings outlook and seeing a relief rally because lots of excuses for that to happen and also seeing in europe is that things while weak, the banks appear to be the federal, the central banks, more aggressive and trying to emulate the u. S. Model and what i think you will see most people doing is actually thinking about reallocating to europe Going Forward and underperformed and about 18 months behind us. I think what you will see is continued increases but a lot more volatility. Anthony, a lot of people were repeating that mantra saying europe 18 months behind or what have you. A cheaper place, a place to be and then wham european stock this is year and now gotten through the stress test results and largely anticipated, did you expect that people expect to look at europe again or no . I think europe is an interesting place but at the same time be realistic. I have to say theres a possibility that europe slips into a recession. I would put it no more than 20 or 25 and 75 chance that were straight ahead. When you say that europe is a year, year and a half behind, in terms of the central bank, i think theyre several years behind and took as encouraging today saw the german index a little bit weaker than expectations because where are you getting the most resistance . Bundes banks. And as for the u. S. , the oil price of 80 seems to be a price of traders sell first and then ask questions about supply or demand driven. Only below 80 for a consistent period of time will they focus on supply or demand. Winny, occurs three fs of the market right now. Fear, ebola or Something Else going on overseas. The fed on fundamentals. Prioritize for me. Whens most important to you right now . I think most important thing is how people feel now. The market is a lot like like the end of a halloween movie. So scary and people are its certainly unpredictable and makes investors really jumpy but we also saw last week having the biggest rally since january of 2013, right . So ebolas a big fear. Geopolitical risk. European central bank big, big deal and the fed talking about at the end of the week. Yep. So fear is a big factor. Thats for sure. What about oil . Crude oil testing 80 a barrel again today. Lets get over to the n ymex hee in new york city. I understand you took money from dom chu on the golf course yesterday. I did, actually. But you know, windy in the back half and were even. For now. But lets stick to oil prices not my golf game for a moment. Another roller coaster by all accounts and an intraday low of before we bounced back up. We closed at 81 even and down just one penny. Goldman is saying that we could see oil prices down to 75 in 2015 and traders saying this is possible but were going to trade the tight ranges based on the technicals until we get there. Of course, this close under 80 is really paramount. We couldnt do it today. Technically thats important. We havent closed under 80 in 2 years or so. Our bob is down to fouryear lows and looking at 3. 08 a gallon is the National Average. Losing 18 cents in 2 weeks. Traders saying they think the prices will go lower and the National Average to probably under 3 and means that people are saving 50 at the pump a month. May take the money and choose to spend it elsewhere. Thank you. In new jersey alone, the average for gasoline, 2. 86. Wait. But shes a golfer . Yes. She is. Thats amazing. Thats impressive. Are you surprised . I am. Whos a golfer these days . Well, with the exception of my venerable cocoast, the worlds best golfer with joe duran, im sure. Oil prices here and try to settle out whether this is going to take some wind out of the u. S. Economy or ultimately the holiday gift here for the consumer. Well, i think its a holiday bift gauze like a reduction in taxes. However, our economy is really shifted to an Oil Producing economy and going to have offsetting impact that wont be as positive, so and where does the money go matters most. Apple getting all of that free money, 600 bucks a year to save, it quoewont be as spread out a think. Youre watching something. How much are you watching oil and the 80 a barrel level . Theres a perception of a weaker oil is negative but i have to tell you. I think its much more of a supply side issue than a demand side. I dont think its weak demand at all. You said it. The other guests said it. The u. S. Is a major oil producer. Its a boom for certainly the u. S. Consumer as well as in my opinion for global consumers. Im looking for cheaper oil to benefit in the long term. Anthony chan ive seen some numbers and some saying 1 trillion tax break if you will by the consumer in the drop. Morgan stanley saying 129 billion in additional Discretionary Income this Holiday Season. How big of an impact are we talking as you see it here . I see it as a very big impact with the average person out there a little over 2,500 of gasoline and from june prices are down close to 25 . It is a big boom. The big fear is that demand and agree with kenny. Welcome the the breakdown. I would say close to 90 is supply and 10 demand and im n encouraged by the two steps of saudi arabia. Reducing supply with kuwait and then over the weekend, over the last couple of days hearing some information out there that they have cut back some of the oil that theyre actually supplying even though they havent cut production and got the big meeting on november. If these prices continue to remain soft, i continue to hope they cut a little supply. I was just going to add some of this is in the increasing dollar. You have to remember its denominated this dollars. We have a big run in the dollar. Half the move is currency translation. A lot of commodities suffered as a result of that. Winnie, how does the individual investor play the oil patch right now . Does that mean you dont want to invest in Oil Companies themselves . You know, thats a good question. The volatility wont improve any time soon. Oil is a big factor. Probably get weaker before its better. Despite how uncomfortable this feels, i think corrections are healthy and we should be telling investors to be expected for longterm growth. This is healthy and necessary. Fair enough. Some names brown 20 , 30 , 40 , in other words, people looking to go tread carefully in the areas of deep value looking at the energy space here. Kelly, thiss the perfect example. Its like a sale on wall street. Right . Yeah. Stocks down 20 , 30 , 40 . You dont want to buy up 50 . What if goldman is right and go to 70 in q2 . Plug it in the model and the last thing is not running away from them when theres an opportunity to buy the stocks at much cheaper prices. Right. Buy big. I would suggest you buy the bigger companies. Right. Buy big. Not the small ones. Okay. We got this. Thank you. See you later. 50 minutes to go. This is such a classic kind of a wait and see day. You can tell theres a fed meeting coming. Cant you . Almost feel it in the air. Like a hurricane system approaching. The vix is up. All eyes on twitter, as well. The microblogging giant if thats not an oxymoron, they give the numbers tonight and see if they turn around the stock which has a pretty rough year. YuJulia Boorstin will be talking to dick costolo. Find out what pushes bio tech thirm sarepata to free fall. Down right now 31 . That story when we come back. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. When diet and exercise arent enough, adding crestor lowers bad cholesterol up to 55 . Yeah crestor is not for people with Liver Disease or women who are nursing, pregnant, or may become pregnant. Tell your doctor all medicines you take. Call your doctor if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine, or yellowing of skin or eyes. These could be signs of serious side effects. Are you down with crestor . Ask your doctor about crestor. E financial noise financial noise financial noise financial noise extremely unchanged today. Is how you can put that for the dow right now. Down a fraction at this hour. As the market obviously waiting for something, probably the Federal Reserve meeting starting tomorrow. Ends on wednesday and hearing the plans for quantitative easing. Supposed to end this month. To look for areas of the Global Markets unchanged, look at brazil. That market hit after winning reelection. You can look at italy down 20 after it notably didnt quite meet the Capital Requirements the stress test was looking for. Movers overseas and here today. Dom . So kelly, bill, big theme of the day of oil stocks. Taking a huge hit as investors of Goldman Sachs lowered the oil price industry. The worst performer on the day in terms of sectors. Halliburton, Qep Resources and newfield exploration. On the positive side, shares of big Telecom Services on the rise. Up by around a percent. Led by verizon, centurylink and at t. On the food front, you have withindys down near session lows. Thats after the fast casual restaurant chain with the price target lowered from 10. Analysts cite among other things the lack of success of pulled pork sandwich and stiffer camp tigs of value menus and ending with sarepta therapeutics. This after the Biopharma Company said they want more detail of a treatment before approving it for use so a big 30plus percent drop on the days session. Wow. Certainly is. Tough act to follow for the nasdaq logged the best week in almost three years and kate rogers is looking at the techheavy nasdaq and the russell for us. Thats right. Nasdaq barely in the red right now. The russell 2000 in the red today under a half a percentage. Semi conductors are leading with sandisk, Texas Instruments and broadcom seeing gains. Now, novavax news to begin a phase one Clinical Trial in december for an ebola drug. The biggest loser on the nasdaq by far today is tesla down around 5 after announcing the leasing policy for the model s allowing buyers to return the car within three months and also reports the automakers september sales dropping year over year and unconfirmed rumors. Back to you. Thank you very much. Its all anecdotal and we were discussing in the commercial break, ive heard two references from people, one on twitter and told me about this how they had to wait in line to buy gasoline over the weekend as prices came down. In one case, fellow bought it for 3. 03 and 2. 99. Seeing gas lines again. This is interesting. This is in some cases in california and northern california. So it reminds me of the mortgage refi boom. Below 4 , everybody refid and then nobody really scared anymore and i wonder if thats whats going on. 3 is a magic number. Do you think thats what people waiting in line for, the fact they couldnt believe they fill up for 2. 99 . I think so. Whatever. Youre getting stocks cheaper right now. The dow although moved a bit higher up ten points, oh, the s p down 3. The nasdaq virtually unchanged as the fed gets ready to meet tomorrow. Get ready for the gusher of earnings reports of major corporations this week. I mentioned the vix higher. Its a mathematical effect of options pricing. It is. A hat tip to ross for quiting many to explain that. Well have the numbers of twitter and dick costolo speaking with Julia Boorstin all ahead. With the focus on the politics ofll ebola, were shifting it to the economics of the virus, specifically the fear of ebola and how it could spread far faster than the virus. The fear itself could spread faster than the virus and do damage economically and financially. Well discuss that when we come back. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. What are you guys doing . Yoga, its supposed to make us more productive. Better mind and body keeps us efficient. You guys have misread the memo. This is the new lenovo yoga with the intel core i5 vpro processor. It combines the productivity of an ultra book with the touch benefits of a tablet. And its custom configured by cdw. So we can stop doing this . My head hurts. [painful grunts] another day of dramatic developments when it comes to ebola in america. Our pharmaceutical bio tech reporter meg terrell has the latest. Meg . Reporter hi, bill. Thats right. Dr. Craig spencer is being treated here for ebola in isolation at bellevue in serious but stable condition and no more updates on him and still only patient in new york city to have tested positive for ebola and a child transported to bellevue last night. This morning developed a fever because he had returned from one of the affected countries in west africa and being tested for ebola. Mayor deblasio saying they expect the results this afternoon and bringing you updates when we get them. The debate is growing about the quarantine measures of Health Care Workers returning from the countries. Mayor deblasio is calling the treatment of casey hickocks unacceptable. She is discharged from the hospital. The cdc is expected to update the guidelines today, a News Conference beginning in a few minutes and any updates from that. Bill an kelly, back the you guys. All right. Meg, thank you very much. Curious what they have to say, what a mess of washington and new york and new jersey specifically. Speaking of individual states taking action, heat in the fight of ebola, its not only new york and new jersey, also illinois and maryland with guidelines for anyone returning from west africa who may have had contact with patients. Critics are lining up saying its about politics but are the actions about economics . Demonstrating theyre on top of the ebola situation to stem any panic that could hurt these local economies . Talk about it. We have rick newman and our own Steve Liesman joining us. Rick, as clumsy as the tactics have been by various states, it is clear. Theyre trying to reassure the public that theyre on the case. But if the fear continues to spread, that can have an impact economically, cant it . Right. And if it appears as if the leaders dont know what theyre doing and appears like here. You know, the public is very fickle. We see that in Consumer Confidence coming to the economy all the time. What will it take for consumers just basically to stay home . What does it take for them to say, you know, this is too scary for me, im going to stay home whenever i can. And could be a situation similar to the bad weather we had for a couple of months last winter and led to minus 2 growth in gdp. Do you agree, steve . I do. This is an enormous Public Policy challenge. You want people to take it seriously and not so seriously to do things like rick was talking about and perhaps crimp ing economic outcomes and no disagreement of economy and what is best from a health perspective. You want people not to get the disease. You dont want it to be contagious. There are potential conflicts here. The best possible Health Outcome to not get the disease is stay home and never go out. That would be the worst outcome for the economy and so what Public Policy people have to do here is to really thread that needle in terms of taking it seriously and some criticism early on that saying this is not a contagious disease and may have led to earlier contagious. Steve, do you agree with rick about the seriousness to push the u. S. Into, for example, a negative gdp quarter . Not yet. It could. It could. Were still very far from that. I think it has to do with each case coming along as its dealt with and understood. You had a guy that was in west africa, a doctor that came back and infected. Thats understandable. The nurses, less understandable. Raised more fear and contained. Its as it goes on, a sense of chaos out there of a lock of containment and i think ultimately the fear comes from lack of understanding from how its spread. Thats serious economic outcomes. Yeah, rick. On the other hand, as you economists like to say, fearmongering is the fear that some Public Officials would have, as well. We in the media taking our knocks for reporting the news, maybe overdoing it in some cases and fanning the fear flames, right . We even had a nurse saying she asked the cdc to get on an airplane and they said, sure. Theres if the people who are experts on this are confused about this, its easy to see how the whole rest of the country could be confused. Everyone keeps using the word panic. We dont need a panic to cause economic damage. We have had a handful of cases in a country of 320 million people. Say we have 500 cases. That would be a lot of individuals suffering but statistically tiny. Yet that would be a big difference from what we have got now. Hearing of a couple of cases in your ski or town, what will you do . There are people to say protect my kids, i wait until it blows over and hunker down. Thats the concern. Steve, im just thinking through some of the other typical seasonal flus over the winter. Is it possible that the adjustments of having the flu or something will help to account for people staying home for fears about ebola, if you will . Yeah. That could happen. Look, kelly, you have been through these economic studies out there. Right . People take all kinds of risks getting um in the morning and go out. You have a risk of a car accident. You have a risk of crossing the street. What are those acceptable risks in what rick is tacking about, economists dont write in and they would call them irrational fears, rick. Right . Thats what they would say. Your risk of getting ebola is almost certainly much less than risk, for example of any of these other things i talked about. Yep. For example, getting hit by a car or a car accident and elevated to a point and people act irrationally to the risk out there. We are not there yet. This is a matter of the known and unknown knowns. This is a new concern. Theyre just not they havent digested it yet. Lets be more concrete. Whens most vulnerable in terms of vsectors of businesses to fel it . Where would we notice the fear having an impact on our economy here . Weve already seen gyrations among airline stocks, for example. I dont think its so much of all the business they do in west africa. Thats a tiny portion of the business but will there be greater, you know, cutbacks, limitations or are things like that restrictions on flights . That hasnt happened yet. And then the Energy Industry which does have some exposure to that area. More of nigh yenigeria. We have a Significant Energy presence there. And chocolate. Those three countries in west africa are big cocoa providers. I dont know anything about that as i eat my dark chocolate bar on set. How ironic. Again. Rick, thank you. Rick newman. Our own Steve Liesman, thank you, as well. Important reminder, bill to the central point, doesnt take panic for an economic impact. Everybody making one or two decisions as a result. Look at that eaten almost all of that. Almost 30 minutes left in the trading session. Yes, it is. Nasdaq, too. Waiting on the twitter earnings. Wall street pro of Charles Schwab saying we have had the correction and the bull market remains intact. Sonders is here next. Later with 80 a barrel oil tested today, the pros tell us who wins and who loses if the prediction from Goldman Sachs of 75 a barrel comes true. Thats coming up. Location. Location. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. To get customers to come here and stay here, youre going to need an app that connects to all your systems. So they can bank, shop, do what they need to do, and you gotta do it fast. Before the competition does. Its tough out here; you better be on the right cloud. Today theres a new way to work. And its made with ibm. With the easytouse suite of tradintrading tools. Tures. At optionsxpress by Charles Schwab. And well give you a one hundred fifty dollar amazon. Com gift card when you open an account. If youre looking for a trade idea, start at the idea hub. Where options and futures opportunities are organized by volatility, earnings, market activity and income strategies. Then run your new idea through the trade and probability calculator to get a quick look at the possible upside and downside. Streaming charts give you the realtime quotes and customized views of the market that can help you make your final decision. And when youre ready to make it happen, walk limit helps you save time by searching for the most favorable price. Find new ideas, analyze and execute your trades with just a few simple clicks, with optionsxpress. For a one hundred fifty dollar amazon. Com gift card when you open an account, call 18889805745 today. Optionsxpress by Charles Schwab. Welcome back. Our next guest is bullish saying the correction has pretty much come and gone and getting volatile market days, the market is intact. We welcome her back. Liz ann sonders and bob pisany. That was it, pretty much . For this one. The view is to get more bouts of this. If you just look back and pull up a simple chart of the s p or the 10year treasury yield and a dot or a line at the ends of qe1 and 2 and what we saw recently in the market is a replica of that. Heading into the prospect of the first rate hike and use the last cycle of 04 to 07, it is the era of increased fed transparency and methodical about it, you have five corrections averaging about 7 so i think thats the environment were in. I think we get more bouts of this and a secular bull market thats not over. A main difference of ending qe 1, 2 before and that the economy is much weaker back then. Printing 1. 3 on the gdp this week on the Third Quarter likely. What do we have . 4 in the Second Quarter and on an upswing at this point. What you need to be looking at when judging the whether, say, another round of qe is washted is look at the job status. The fed has the two mandates, inflati inflation and jobs. Looking at claims or unemployment or rate, its markedly better and translated into better gdp numbers and not only key jobs numbers but yellen looks at like jolts and decline in longterm unemployment and absolutely sending a different message than the prior two ends. You bring up a great point and one the market is trying to figure out and has been for weeks. What about the other part of the mandate . What about inflation and the part of the forward expectations are so low and so week and to what extent for the fed to take it more seriously . I dont think its a point of a major deflation risk. I think it does at this stage is a bit of breathing room and then the strength in the dollar, too, a defacto tightening and the strong dollar is a good thing for the economy and market and the factors mean you dont worry about a fed forced to get too aggressive on the rate hikes. Significant drop from here if it looked like we were importing the kind of deflation that europe is faced with, its a different situation. I dont think were there yet. Who will you going to invest in then . Ffsing for growth . Traditional cyclicals . How defensive do you want to be, as well . Really shortterm trading oriented, playing that game and try to game shortterm moves in the market, go to defense in those periods but we are maintaining a cyclical bias and we think energy is looking interesting. Not because we have some reversal thesis on oil prices but the valuation has gotten so extreme on the low side in energy. We think you want to sort of look in that area, as well. Speaking of oil, do you think its fair that oil is a proxy of lower Economic Growth . Are we sort of looking at it in the wrong way . Smacks around the stock market now. Certainly good news to be down for the u. S. Economy. We are acting like its somehow an indicator of somehow on a global level. I dont think it is. I think theres a Global Demand piece of it and chinas investment peaked out recently trending down and a driver of oil prices but the real story on the supply side. But i think maybe one of the potential rubs is that were in the beginning of whats hopefully a Capital Spending cycle and what Capital Spending we have had in this country is driven by energy to a large degree. Breakevens, Oil Production or a look at places like eagle ford, you are at quite a bit lower levels than right now and i think thats the shortterm potential negative. Does it choke off that piece of the Capital Spending part of the story . I dont think were there yet but thats a worry. Liz ann, a colleague at sb capital iq says well be at alltime highs by thanksgiving. Do you agree . Is that the most likely path . That quickly to get there . Its possible. I think sentiment is washed out quickly and rebounding fairly quickly, too. If theres any one measure to look at to gauge shortterm moves in the market, it is the traditional sentiment. If optimism skyrocketed from here, you have to be worried about a pullback in the market. To see new highs in the near term, i dont think thats a stretch. Very few amongst trader lore, november, december has magical glow about it. Seasonally strong period. Youre going into a higher buyback season in november. Were in the week before the midterm elections and up traditionally. Mythology, call it trader mythology around this particular period and usually optimistic. The traditional end of quantitative easing, as well. What do you expect the fed to say on wednesday, liz ann . Do we get hints and talking about liftoff some day and they start to raise Interest Rates. What is your guest s on that . I think theyll end quantitative easing. I dont know that were as obsessed with that considerable time duo of words that we were last time. Unlike the market. I think, you know, thats going to be of interest, whether they drop that. You start to game what that means from a time period perspective. But the fed is truly data dependent. I think sometimes i listen to investors who feel like the fed has a preconceived motion and just deciding when and how to share that with us. I think the moves will be a function of the data and picking up significantly between now and, say, the first part of next year, i think they guide sooner. Obviously vice versa if the data weakens. Have you waited in line for 3 gasoline here yet . You guys in connecticut are paying yeah. No lines yet here in connecticut. Sadly. Okay. Good to see you. Good to see you, to. You and i have a work thing going on in texas next month. Look forward to it. Looking forward to it, too. Thanks, bill. Drive and fill up down there. I know. Im not going to might use the gas on the trip. Thank you, bob. By the way. I wont see you in dallas. Dows up 4 points. Clearly in wait and see mode, not only for the fed. We have earnings coming out, as well. All eyes on the insurers, too. Big names expected for results and Bertha Coombs with a special look at these stocks. What does it say about obamacare . A closer look. Speaking of earnings, twitter Ceo Dick Costolo exclusively with Julia Boorstin. Keep it right here. Stay tuned. Relief. A cure. Today, we believe every life deserves worldclass care. As one of the top four hospitals in the nation, over 100,000 people from around the world come to Cleveland Clinic for care each year. And were ready for you with a Second Opinion or a sameday appointment today today today and everyday. Call today, for an appointment today. Can you start tomorrow . Yes sir. Alright. Lets share the news tomorrow. Today we failrly busy. Tomorrow were booked solid. We close on the house tomorrow. I want one of these opened up. Because tomorow we go live. Its a day full of promise. And often, that day arrives by train. Big day today . Even bigger one tomorrow. When csx trains move forward, so does the rest of the economy. Csx. How tomorrow moves. Shyou see this right . Its 80 confidence and 64 knee brace. Thats more. Shh. I know thats more than 100 . But thats what winners give. Now bicycle kick your old 401 k into an ira. I know, i know. Listen, just get td ameritrades rollover consultants on the horn. Theyll guide you through the whole process. Its simple. Even she could do it. Whatever, janet. For all the confidence you need. Td ameritrade. You got this. Welcome back. Some of the nations Biggest Insurance Companies are posting results this week, too. Most of the stocks outper tomorrowing big time. Bertha coombs has more on the hot sector. Insurers hitting fresh alltime highs today led by an alltime high and dow component United Health shares reported better than expected profits last week thanks to the recovery on the economy. Well get a sense of whether thats still the case for the peers this week. With etna reporting tomorrow before the open. Estimates for 1. 57 earnings per share and analysts will be looking for an update on the outlook for profitability, though, on its Obamacare Exchange plans. Its down 8 from the alltime high. Wellpoint reports ahead of the open on wednesday. Analysts looking for 226 on the bottom line. Biggest gainer among the large cap Health Insurers wellpoint up 30 year to date. Cigna lagged the peers about 5 . Last quarter analysts are looking for earnings of 1. 82 a share. On thursday. 8. 7 billion in revenues and any new outlook on just how its going to compensate for cost trends on the obamacare plans. Bill . Thank you. Etna ceo Mark Bertolini with us coming tomorrow. Always love talking to mark. Hes always forthcoming. Speaks his mind and a lot to say. Talking about obamacare, the economy and a lot more. Really looking forward to that one. We have 15 minutes to go here into the close. The dow in positive territory on the day. S p still weaker. Nasdaq up by about 2. And as we mentioned, twitter earnings due out moments after the top of the hour here. Ceo dick costolo giving reaction in an exclusive and find out what he has to say about user number which is are being closely watched. Of course, the struggling stock price for twitter this year, as well. All that and more coming up. [ male announcer ] automotive innovation starts. Right here. With a control pad that can read your handwriting, a widescreen multimedia center, and a headup display for enhanced driver focus. All inside a newly redesigned cabin of unrivaled style and comfort. The allnew cclass. At the very touch point of performance and innovation. At the very touch point of performance and innovation. Ameriprise asked people a simple question in retirement, will you outlive your money . Uhhh. No, that cant happen. Thats the thing, you dont know how long it has to last. Everyone has retirement questions. So ameriprise created the exclusive. Confident retirement approach. Now you and your ameripise advisor can get the real answers you need. Well, knowing gives you confidence. Start building your confident retirement today. Another head spinning round of earnings after the bell this evening. We have dom chu to preview names and numbers to watch. Lets go with the big ones. Twitter, of course, on average, analysts looking for a penny per share and on sales of 351 million. As always, user growth rates a focus of investors and buckle your safety belts, guys. Options traders pricing in what could be between a 13 to 14 swing in the stock after earnings and stay tuned for Ceo Dick Costolo interview with Julia Boorstin next hour. And then amgen with analysts and expecting 2. 11 per share. Sales of about 4. 96 billion and near the session highs approaching that earnings report. Also, Buffalo Wild Wings, one you want to watch here, earnings per share at 1. 07. Tradering looking for clues on Consumer Spending and commodity and labor options. A possible move of 8 in bwld stock up or down after the close. Back over to you guys. Jackie earlier this hour talking pretty good smack about beating you in golf yesterday. I hear you disagree with her on that. I will say this, though. In the golf match, i may have lost and replenished the golf balls she lost in the round. I was trying to be a gentleman here and did replace some of the golf balls she lost. Very nice. Im just impressed all around. That is a tough sport. You dont play golf . No. For some money sometime . Definitely not. Well get you out there. We have ten minutes left in the trading session. Coming back with the closing countdown and the slew of after the bell earnings that dom was talking about. Later, tesla with a new leasing policy for the model s vehicle. You can return it with no obligation within three months. Will consumers plug in . Phil lebeau will have the rundown coming up for you. She inspires you. No question about that. But your erectile dysfunction that could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. 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Thats why when the time came he counted on merrill edge to streamline his investing and help him plan for the road ahead. Thats the power of streamlined connections. Thats merrill edge and bank of america. What if we finally had that would be amazing. Hey, what if we took down this wall . What if this was my art studio . What if we were preapproved . Shut up from finding to financing, howd you do that . Zillow. Heading to the last five minutes of the trading day and this is one of those classic days preceding the slew of earnings coming out and feds meeting and completes on wednesday and hearing from fed on wednesday 2 00 eastern time on what theyre going to do about quantitative easing and ending the 15 billion a month in bond purchases that they have been going through for the last several years. This is what the dow did today. Pretty quiet day a. Selloff this morning and then sideways the rest of the day. Keeping an eye on the price of oil which was testing that 80 a barrel level and for a time it was below it. And here we are right around 80 still so thats the key level that everybodys keeping an eye on to see if it breaks appreciably below that. You have heard Goldman Sachs out with a reforecast for oil for next year could be 75 a barrel for oil. Twitter reports after the close tonight. And just a reminder that Ceo Dick Costolo our guest exclusively on the second hour of the closing bell talking about the numbers and the growth and turnaround numbers he is learning at. Joining me is katie stock and bruno dilama. Youre the technician. Well put a chart up here which will increed that incredibly volatile month of november. Have we done damage or going higher here . I think theres damage done. You see nearly a 10 correction here and that broke down below support levels for a lot of individual stocks. Looking at the s p 500, its not broken, its not reversed the longterm up trend and from the bottom up, looking at individual stocks, there are a lot of breakdowns and the relief rally, you have to be wary of it. Its been fast and furious and regenerated shortterm overbought conditions for the First Time Since august. Lets see how quickly they can do it in the booth, a oneyear chart of the s p and see that uptrend over that time frame and what this period here did to that uptrend and where you see we go. Sam stovall said we could see alltime highs by thanksgiving this year. I mean, its always a possibility but now resistance is pretty significant. Not so much for the s p 500 but if you look at the russell 2000 index, the areas of the market with underperformed, those face a lot of resistance Going Forward. Okay. Theres the oneyear chart. Okay. So, you know, marching higher. We have had the pullback. You say that trend is still in place . The trend is track on a long, longterm basis. We have a dip below the 200day moving average and a widely watched level. We are in store for a retest potentially below 1900 before another try into year end. Okay. Bruno, what is your view of the market right now . Have we done damage to the market . Does it make you want to step in or step back and let the volatility rest for a while . Were more of a fundamentalist and we have a fairly similar view and think whats happening with the slowdown in europe weighing on u. S. Stocks and we offer right now a more of a technical momentum strategy and incredibly defensive right now. 60 shortterm treasuries and 40 in the market is in very defensive sectors and we think that there is at the short term some more potential downside than upside. Over medium term, more constructive. Utilities at alltime highs last week. Is that a defensive group to look at . Yeah. Defensive sectors we like are more consumer discretionary. Also, we do like, utilities we dont like. Okay. But more of discretionary, Health Care Sectors we like better. Who do you like . Sectors you think will take us higher here . I do, i do. The weakest nearterm look Like Technology and materials to me. Strongest are really those Interest Rate sensitive so the financials, the staples, the utilities and Even Health Care in some cases. What about energy . With oil testing that thats right. 80 is significant in terms of support on the chart of wti. Near term we should see stabilization and help energy but maybe just temporarily. Do you want to be a contrarian and buy oil stocks here . No. We are at a fundamental level energy is problematic. An indication of Global Markets, generally slowing down. So from that perspective, very difficult. All right. Very good. Good to see you both. Thank you for your thoughts on todays market action. Such as it was. I mean, plenty of individual stocks that moved and major averages not a lot getting ready for the fed meeting on tuesday and wednesday and the big earnings reports out at the top of the order and twitter. Stand by for that and dick costolo right here on the second hour of the closing bell. Ill see you tomorrow, kelly. Thank you, bill. Welcome to the closing bell, everybody. Im kelly evans. After a strong week on wall street, the dow up and turning positive there into the close and same for the nasdaq and managed a gain of looks like 2 or 3 points here. S p closed weaker right around the 1961 level. Russell 2000 is weaker, as well. Were about to have several big earnings hit the tape including twitter. Before that, lets bring in the panel. Michael yoshikami here with sarah eisen and carter and fast money trader guy adami. Michael, first, you agree with Liz Ann Sonders . Smooth sailing ahead . I dont agree but i believe the correction. Thats it. I think whens going on here, kelly, is i know were beating a dead horse here but as long as the fed is going to go in and insert adjectives to make people not panic like the last week or two, theres going to be a floor in the market. The fed doesnt have real estate to fall back on. They look for the Health Effect of the markets. I dont know. Is that the good kind of fed speak, carter, or the bad fed speak . Dont we want to get beyond the point of them shoring up confidence . Eventually, sure. But i mean, i think it is worth pointing out we dont whats coming on wednesday. The language is changes a little bit. But my guess is probably waiting until the december meeting for a bold change to the forward guidance. I think a chance that considerable time language stays just about where it is. In terms of today, probably quite a lot of relief that the European Bank stress tests werent more biting than everybody was worried about unless, of course, you are an italian banker then you have problems. Is that relief . Much more vigorous than the last time around. Fine. Think seemed legitimate stress tests if nothing else. Were at a point and bad is good news. Right . As opposed to disastrous. Thats where we are at with the European Banks. Doesnt it seem like the United States just went through this . If thats the case, maybe theres opportunity in europe, maybe some opportunity if a quantitative easing Supportive Program is put in to help the European Banks. Thats a big if, sarah. It is. Legally, political appetite to do that, whether hoe close they get to outright deflation. Oil dipped below 80 a barrel and saw it in october and before that havent seen it in years. Came off of the sharp lows and a percent lower. S p energy names absolutely hammered and the question lingers of whether that price drop in oil signals deflation and Global Economic weakness or is ultimately a positive for the economy. In terms of consumption and this is a 70 driven economy by consumer consumption. That seems to be the argument and the s p following oil lower. Worth pointing out, one report but the Goldman Sachs report saying its supply side driven shock. I think its its saudi arabia situation, right . The conspiracy theorys is the United States and saudi arabia get together to break putins back. The second is saudis doing it on their own. Do you think the United States is that crafty with Foreign Policy . No. Thats why its conspiracy theory. I think that what might actually be happening, though, the saudis might be interested in impacting whens happening in the middle of the United States and making sure they protect market share. Look at the shale Oil Companies. Absolutely hammered. Guy, what is your theory about everything thats going on here . Cant have it both ways, kelly. Ive heard people say Energy Prices going up thats a good thing. Now everybody saying the prices going down are a good thing. Cant be both in my opinion. Im sort of more in the deflationary camp. Oil didnt go to 80 bucks on supply in my of. Thats part of the equation. Stronger dollar. A bigger part is globe is slowing down and guy . That is not healthy at a certain point. You have been cautious on equities but whats the quote unquote deflation trade . What should they do . I dont know. Whats been going on in china for 20 years . You know what the deflation trade there . Look at the bond market over that period of time. It was a home run. To a large extent going on here. Nobody wants to talk about it. Yeah, the bond market rates have bounced from the 1. 80 oversold condition to now and remain firmly in the camp that rates are headed lower despite what everybody else seems to want or think or say. You disagree . I dont disagree. I think rates are going to be in downward pressure particularly again if oil prices fall. Im of the belief theyre going to totally hack inflation off so its just astounding to me. Its astounding to me were now talking about 2 10years and just talking about 3 10years a year ago. Theres an incredible another factor to bring up with the price of oil proving lower and the price of Interest Rates staying in demand with those yields low and thats the strong u. S. Dollar changing the dynamic, what it means for equity investors, perhaps shakes them up a little to see the policy divergence with the u. S. Economy holding up and the Federal Reserve inching closer to higher Interest Rates. Can i point out, though, that some of this conversation is assuming a static policy response to the extent that oil gives the fed a little bit more room to wait to raise rates and things really bad and the fall in oil doesnt just impact headline inflation out means that later on you might be looking at another round of quantitative easing. It is low probability right now but this isnt a situation where the Oil Price Drops and we have a little bit of a boon fie youre janet yellen, mr. Garcia, you see were in trouble. A big drop in oil prices and say to yourself, i know this is perhaps a boon to the u. S. Consumer not falling too sharply, would you x that out of your policy response . I dont know. I really dont know. If its a situation getting close to full employment, or pushing beyond, we get actual real wage clothe climbing for the first time, then theres going to be less pressure to do that. For now, the fed missing on the inflation target for better part of two and a half years. Do you think theyre going to end hang on a second. Well come back to this in a second. The results of twitter are out. Julia boorstin has the numbers and a special guest. Julia . Thats right. Twitter revenue at 361 million. Up 114 year over year, 10 million more than wall street projected. Earnings per share in line with expectations at one scent per share. The key number is monthly active user number and coming in at 284 million monthly active users. Looking at advertising arch re knew per user, 1. 12. Thats one cent better than expected and Fourth Quarter projections, the projections of between 440 million and 450 million for the quarter are a little bit lighter than wall street projections of 448 million and the midpoint is lighter than expected and everything pretty much in line with the exception of revenue which is better than expected. Right now, id like to bring in twitter Ceo Dick Costolo to talk about the numbers. Thank you. Wonderful to have you here in our lovely home. In your lovely offices. Tell me a little bit of what drove the results this quarter. Revenue better than expected and protecting q4 numbers lighter . The numbers let me just be specific are actually a raise on the fullyear for us and a raise on the quarter. And i would also say about our business specifically that across the landscape of 1 billion Digital Advertising businesses, we are the Fastest Growing business within that landsca landscape. Tell me a little bit about the user goet. You have talked about it in the past and need to add a significant number of users to mainstream. 13 million new users in the quarter n. Line of estimates and still not a dramatic jump. We have an aspirational goal to build the largest daily audience in the world and comprised of what i call three eccentric circles. You have 284 million monthly active user that is create all the content on the rest of the entire system. In the circle beyond that, hundreds of millions of users coming to twitter and dont log in. Thirdly, you have the circle beyond that which is the syndicated audience. All those users across the web that consume and experience twitter content in syndication that we have now also added to mobile application syndication with the launch of our mobile app developer kit fabric. Can you tell us how many users you expect to add in q4 and any news about your intent to grow this logged out experience . You havent made that many dramatic changes to the product which you said you would make. We have three priorities with respect to the business in general and that growing that largest daily audience. Theyre one of strengthening the core. Growing that logged in monthly active base. Beyond that, when i talk about reducing the barriers to consumption, and helping those logged out users get an experience right away, we have started to execute on that. For example, in the last quarter, we released the mobile profiles experience and those new mobile profiles dramatically increased the number of views, the number of engagements and the number of specifically of media content views on those profile experiences so we like a lot the strategy we have got to grow that logged out audience. Our first bit of work around the logged out audience to profiles is tremendously successful and well continue to execute on that across the rest of the logged out audience. Can you tell us how much growth youre seeing of that logged out audience and translates to Revenue Growth . Well talk about some of the numbers around profile pages on the call later on today. How problemic is about less information of the logged out users and less valuable to advertisers . We dont think they are for a number of reasons. Theyre coming either because of a directed search, searching for an interest, a hash tag or a user so theyre already coming into the platform with interest. Secondly, because of our ability to organize content around the interests in the world cup with the world cup experience we developed, we know we can deploy experience that is are super valuable to the audience no matter how they come to the platform. Will they ever be as valuable as a logged in user . We think their consumption first audience logged in or out can be just as valuable. Tell me a little bit about the average revenue per user. You grew it this quarter and half of facebooks average advertising revenue per user. How can you catch up . Well, we believe that the interest graph thats measured by what people are coming to twitter to don assume and the kinds of things engaging with give a very specific view of what that user is interested in and a highly targetible and advertiser friendly view and we like the way thats growing. We like the trajectories is growing on and the engagement rate with the ads. Will the average advertising revenue per user catch up to facebook . I wont speculate on whether it catches up to or pass or fall short to somebody elses. Lets talk about fabric, a new operating system for mobile app developers. Is this a big departure for twitter . What do investors not understand . It is about the evolution of twitter of a Single Product Company to a Platform Business. And secondly, and specifically to fabric, fabric is about being part of the foundation of the entire mobile application ecosystem. Helping developers around the world build apps across platforms from the moment they start developing them to the day they want to start monetizing them at scale. If we are part of the foundation of every mobile application in the world, then enormous opportunities accrue to us. Is this a huge transformation of your Business Model . No. An evolution of a company to a Platform Business and we like that evolution. A quick question, final question, about your management of people. You lost some more high profile executives. Peter teal recently criticized twitter as a horribly mismanaged company saying theres probably pot smoking going on there. A nasty criticism. How do you respond to the questions of investors and krit similar of teal made. What i lack in hair and 20 20 vision i more than make up for in self confidence and the team i have got in place and the strategy that we have got we love. And we all believe in it and we know that when were successful, twitter will be useful and vital to every person on the planet. Wow. Quite a bold statement there and looking forward to hearing more about the logged out users. Thank you for joining us. Thanks. Really appreciate it. Kelly, back over to you. Julia and dick, our thanks very much. We have much more twitters results, reaction to the interview and big after hours movers when we come right back. Getting in a groove. Growth is gratifying. Goal is to grow. Gotta get greater growth. I just talked to ups. They got expert advise, special discounts, new technologies. Like smart pick ups. Theyll only show up when you print a label and its automatic. We save time and money. Time . Money . Time and money. Awesome. Awesome awesome awesome awesome all awesome i love logistics. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Twitter reported and under pressure to the tune of 9 and now reaction to the results of the interview and the shares after hours with aaron kesler and daniel ives with guy adami and the panel. Aaron, why this sharply negative reaction . Revenues and ebitda fine and q4 guidance not as much upside versus consensus estimates. Time line views missed our estimate by a couple billion, as well. Some of the metrics a little light and the revenues and ebitda upside and not as much as investors were expecting. Daniel, when about you . Investors were expecting another promise over performance and i think this was, you know, sort of came short of expectations, especially in terms of guidance. I think also speaks of what were seeing of earnings season. Look at amazon, ibm, netflix. Re enterprise, investors looking for growth, profitability. Here, disappointed in terms of first glance. Guy, you look at the reactions we have seen to these earnings coming in, twitter didnt blow it out but certainly with regard to at least the top and bottom line estimates they pretty much came in as promised. Talk about the ones you mentioned. Netflix, a wednesday i believe that netflix reported and the after market and trading 328 and overreaction. I think the stock put in 390 last week. Look at amazon. 278 post their earnings. And netflix, the comments of mark cuban helped. You see it in twitter. Theyll flush it tomorrow. It wasnt a disastrous quarter and evaluation in the way but ill say that the folks selling facebook on the back of this which appears to be the case, i think making a mistake because i think facebook is headed to 85 bucks. I want to just remind people that in the interview that dick costolo just had with Julia Boorstin, what i lack in hair and 20 20 vision, i milwaukake in self confidence. What do you make of that . I think sarah has a better comment of that. Thats what we call a pass. Yeah. Im passing on that one. The stock is down. There is just not clirty in my view of what the socalled platform of twitter to build. I get it at facebook. Facebook i think a more vibrant model and understand how people plant on the system. Think about twitter, we are talking about really the logged in versus logged in users. How do you become a platform with a lot of logged out users coming with a particular headline or a particular tweet . So i think theres a lack of clarity around the stock of really the master plan is for this company. Understandably so. Its a Brand New Company and a brand new supposed platform. I dont know what that platform looks like. What do you think, sarah . On the comment about the 20 20 vision, i think dodging the question of whether they smoke pot in the office and already answered that on twitter. The question is, does twitter have a growth problem . This is a problem from day one. We talked earlier and all about the Monthly Average users and the fact that theyre only growing it to 284 million. From 271. Isnt the kind of growth and not the numbers we are seeing of facebook and why its interesting of an article earlier in october suggesting twitters mounting cash pile, make an acquisition. Perhaps in asia, internationally or even in the messaging apps to try to lift that growth rate. Twitter wont be a service like facebook that everyone needs. You will have high growth rate, if you have that, you can justify uncertainty. At least theyre growing a lot. If you have uncertainty of the platform looks like, you dont have blowout sort of growth rates, thats problematic for the company. Guy, a last word before you go . Facebook selloff to me is the opportunity. I think that theyll knock twitter down to a 43 handle. I think you got a shot to buy it there and selloff of facebook is stark. Makes sense but to me the real outlier is facebook sell enough. Okay. Fair point. Thank you all. Thank you, guy, especially. Stick around. Guy is coming up at 5 00 and talking about the huge slide in oil with Dennis Gartman. He had a shockingly bearish call on oil. Stay tuned for more detail on that and thanks to aaron and daniel here on those twitter numbers, as well. Amazon shares also crushed since reporting a wider than expected loss last week. Bob olstein saying amazon is going to 100 a share. Can c eo jeff bezos turn the ship around . Thats coming up next. And tesla offering a leasing option and a happiness guarantee for the new model s. Will the deal make shareholders happy . Thats later. Then theres trusting your vehicle maintenance to ford service confidence. Our expertise, technology, and high quality parts means your peace of mind. Its no wonder last year we sold over three million tires. And during the big tire event, get up to 140 in mailin rebates on four select tires. They take us to worlds full of heroes and titans. 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Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. Gov welcome back. We begin here with dominic chu and an earnings alert. Dom . Lets start with amgen chairs up marginally. This after the bio tech giant reported 2. 30 per share beating the estimate of 2 isnt 11. Sales better, 5. 03 billion versus 4. 96 billion. The company said that the adjusted operating Income Growth Strong Performance in the quarter and Buffalo Wild Wings shares up sharply this after the Company Reported earnings that beat average analyst estimates. Sales in line. The company did say, however, in the report that they can at least attribute some of the strength in the quarter to the fact that our strong sales growth, quote, lower food costs and a lower effective tax rate more than offset the increased labor cost of certain employees and appears commodity costs are working in their favor and there you can see those bwdl shares up 5. 5 in the after hour trades. Thank you. Amazon shares slightly up today. We had bob ol zsstein on the show friday and been negative on amazon for a while now. He came back for a victory lop saying this. I think, kelly, on the way to 100 a share and thats 100 a share . Thats what i said. I think they have to justify that with cash. With us now is ari zolden completely disagrees with olstein and we want your opinion at home. Go to cnbc. Com vote and let us know if you think amazon stock is headed higher or lower from here. Ari, welcome. What do you disagree with on amazon . Great to be here. Im not sure where hes get the 100 target. Jeff bezos said he is not interesting in a foreseeable, Profitable Company for sometime. I dont understand why the street, why analysts, the bankers are shocked by a lot of the swings here. Lets put it differently before the panel. Why if it unprofitable for a long time is it a good investment . I think its within of the stock that is are just going to do really well and selected by ecommerce today and i think ecommerce really hasnt even strapped the surface and it has a long, long yeah, theres no dispute about that. It will take over the world. Look at the Holiday Season and amazons numbers on a revenue side up but ill tell you how you get to 100 price. Im not saying it is but the way you get to that is any kind of real world valuation. Look at the pe ratio of the stock, all sorts of other ways to look at it. Owe sold out of it, right . We did for this concern. I just at what point do they become a company thats not just all about growth . This is a little bit like rambis as a chip company and maybe spending the time suing other chip companies. When does amazon become a real company . Have you ever let me ask you. Have you bought anything about from amazon . I im the prime member of the century. Why . Why did you purchase from amazon . Because you believe in the company and you know youre going do get the package. No, nothing to do with the company. Of course it does. No. Its cheap and i get it now. Doesnt have to do with the company. But you believe wait. Giving me something cheap. But you believe you get that package, you believe in the company. Why not hold on to the stock . Dumping the stock now makes no sense to me. Again, the company hasnt even scratched the surface. What is buying a skin for my iphone have to believing in the stock . Its very logical. If youre going to purchase a product, dont you believe in the company. I dont understand. You buy a stock, even though you dont believe in a stock . I dont get the rational on that. Hang on. Its always been an unusual, unique Company Price based on what it might one day do than right now doing and you look at, everything works in reverse. Look at this year. People complain of buybacks and dividends of the companies and rewarded the companies putting their money in investment and amazon working in reverse as usual. I dont know what will happen to the company. I think its kabuki theater. Begging companies to invest more aenl not just return the cash, amazon is doing that and punished for it. My question, ari, to you, this is the model for a long time. Youre a believer in it. It takes a lot of cost to get the future growth. Who cares about profits . But we have alibaba and also a very dominant ecommerce business with its hand in different businesses and profitable. Right. So thats a very, very good point. The Chinese Market is very, very different than the u. S. Market and anybody can argue that. I think that alibabas entrance into the u. S. Market is going to help amazon and not hurt and i definitely see a potential partnership down the road. So although theres people on the street that disagree with me and probably the twitter handle will blow up shortly, but its good for twitter. They need the hits. But i think, again, i think alibabas going to be working really well with amazon. Let me ask you one quick question. Youre a well respected guy. My wife doesnt agree. Well, but at least you havent said what the twitter guy said about you know . There you go. My question is this. Stlnt a point when amazon becomes like best guy or safeway and simply just a retailer selling with low margin products and if it is doesnt that really kill down the valuation of the stock and the pe ratio is not even a pe ratio right now. Right. Thats a fair i really think thats a fair question and comment and amazon is doing a lot of things outside of the etail space. Theyre investing a lot in expansion in terms of warehousing, also. Owning the b 2 b customers. We see amazon delivering a package. They dont see the enterprise type of products behind the scenes. Fair enough. Before you go, i understand why you like the Company Long Term and still like to know, are you investing in it predicated on the earnings or you like the story and betting on jeff bezos . I love the story and in it for the long haul. How long, by the way . I dont think im going to live 30 years and 5 to 10 years. We hope you live that long and follow and see what happens with amazon. We the way, a 65 of the viewers weighing in think the stock is heading lower. From here. Take that as you will. Goldman sachs slashing the oil forecast for yex year. Consumers liking that news but it could be bad for many others and not just Oil Companies. Talking about those names next. Also, tesla offering car shoppers a happiness guarantee leasing the new model s. They will have three months to simply bring it back if theyre not satisfied. Will it help to drive the mass market to the automaker . A brand new start. Your chance to rise and shine. With centurylink as your trusted technology partner, you can do just that. With our visionary cloud infrastructure, Global Broadband network and Custom Communications solutions, your business is more reliable secure agile. And with responsive, dedicated support, we help you shine every day of the week. Centurylink your link to whats next. vo solver of the slice. Pro. Teacher of the unteachable. You lower handicaps. And raise hopes. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. You can even take a fullsize or above, and still pay the midsize price. pro nice drive. vo well played, business pro. Well played. Go national. Go like a pro. Welcome back. We begin with a check on twitter after reporting results. A disappointing reaction. And the time line views and soft relative to the street expecting. All that said, they did have a few more monthly active users than was expected but the reaction you can see there, twitter off 9 after hours. Dom chu now has more back at headquarters. Dom . Kelly, we are watching shares of kohls stores. The companys issuing guidance for the quarter. They say they expect Comp Store Sales decrease 1. 4 in the Third Quarter. Thats versus analyst estimates of 1. 5 gain. They attribute october sales being softer than the balance of the quarter. They also say they expect childrens to report and accessories and mens outperform the Company Average and home and womens underperform the Company Average. They did say they are lowering their guidance to the lower end of the its previous range 4. 05 to 4. 45 so the lower end of that scale is where theyre guiding 2014 earnings per share on average analysts expecting 4. 29 so thats why you can see the slide in the shares, 5 in fact after hours and lowering their guidance for fullyear profits amid slowing sales for the Third Quarter. Back over to you. Thank you. Kohls off 5 . Oil lower today, as well. Sliding 13 over the last month and Goldman Sachs saying 75 a bail oil next year. Who wins and loses if theyre right. Joining me is stephen schork. Welcome back. Great to be back, thank you. And so, i mean, im guessing the obvious here, right . The oil producers, the Energy Production names broadly, but if 70 in q2, who hit the hardest . Right now it is going to be first and foremost its going to be alternative fuels. 70 oil, oil is right now at 80 a barrel, that core lates to 2. 95 for the con supsumer at t pump. And 70 certainly gets us now to that 2. 60 range so the Lower Oil Prices go, the lower Natural Gas Prices go. That is certainly one potential loser in all of this. And then the other two are the obvious ones. Your oil levered and natural gas and your Oil Service Companies are also vulnerable to prices at these levels. Excuse me. One more thing. The United States government is vulnerable. Were looking at the United States over the past five years really become an Oil Producing dominant economy so the loss of production, the loss of revenue on that side of the ledger will translate to the u. S. Treasury. Surely and thats one of the big debates right now how much will it hurt versus help . First point you made of alternative fuels, im guessing you mean solar names. Can you comment on a tesla . If the argument for owning an electric car and im not sure it is but one of alternative fuels . Right. Im not licensed to give out individual names and i can identify the industries and certainly with alternative fuels, yes, electric motors, hybrid motors, look, hybrid motors we look at the most fuel efficient cars in the world, talking clean diesel. 19 best cars for mileage are diesel and the toyota prius at number 20 so certainly youre going to be hit on the hybrid side, going to be hit potentially and mind you we need to stay prices down at this point versus sustained amount of time. Solar, wind and anything other than a nice hydrocarbon to burn should be vulnerable in the downdraft. Based on your perspective is this a what is going on with the price . Is this a supply issue . Is it a softening economic issue . I know youre youre the expert. Tell us. Whens happening with the price of oil. Well, certainly, the concern, the bigger concern here is the economy. Now, where we get to this point is demand and supply. Demand perspective we have a situation with europe. We have the property slump in asia which is core lated to a very strong dollar and low oil prices and situation of iae predicted lowest since the recession for oil growth and people are poopoog the ebola crisis and im not. Similar to the sars to the asian economy and then the Goldman Sachs issue and what that spooked the market today because Goldman Sachs is the perennial alltime favorite on oil prices. No one talks Higher Oil Prices better than Goldman Sachs and the fact they threw in the towel apparently today is a scary signal. Now, the supply side, what was our big concern in the summer . It was isis, so now youre threatening iraqi production. Libyan production, nil. We are through the summer demand season. We are at the weakest point of the demand season and we never lost the iraqi barrels and libyas back to producing 750,000 barrels a day. So now you have to say, is this 1989 again . Low oil prices but opec because they are starved for revenue will start to keep producing regardless of price . Take venezuela for an example. Right. Trading 57 cents on the dollar. Those guys are going to default unless they keep the money coming in. And we see vociferous already. Before you go, we have talked through several of the losers. Who wins in this situation . First and foremost, its going to be the u. S. Consumer. As we said, with the way that it translates to Retail Prices so thats great for consumer staples, discretionaries, anyone that burns a btu. Fantastic time for the utilities right now because thank youre going to be able to lock in their winter next summer supply at great levels. Same thing with the airlines and the airlines have proven time and again theyre not smart enough to take an advantage of this. But if they do, thats a great position. Also, your refiners. Believe it or not, looking at the diesel crack trading at 120 cents on the dollar. Good yields there. You certainly have the ability there. Your tankers, your shipping companies. Because these low prices, encourage stockpiling and seeing oil flowing that much more. But i want to add, guys, look. 75 is great, 80 is great. This is the weakest demand point of the season. Demand is picking up. We lost over the past two months 1. 5 Million Barrels in the United States because of refine refineries and turn around. New york harbor gasoline supplies, near record lows. The problem there is every refinery up there in the canadian maritimes are troubled. You might not be able to replenish gasoline. This is like the schork tenminute monologue. We have to watch it three times to absorb it. I wouldnt have thought with the barges that they would have benefited from this instead of hurt by it. Well let you go now. Please come back. Absolutely. Consumer staples at a record high and the earnings less than stellar. So are utilities, another name he mentioned. Anyone burning a btu. Tesla switching gears. A twist on a Lease Program. Well examine if it makes a bigger market plug in to an electric car and nba season tips off tomorrow and already a new clippers owner Steve Ballmer is a winner. 2 billion purchase of the team, well see how that story scores when we come right back. When diet and exercise arent enough, adding crestor lowers bad cholesterol up to 55 . Yeah crestor is not for people with Liver Disease or women who are nursing, pregnant, or may become pregnant. Tell your doctor all medicines you take. Call your doctor if you have muscle pain or weakness, feel unusually tired, have loss of appetite, upper belly pain, dark urine, or yellowing of skin or eyes. These could be signs of serious side effects. Are you down with crestor . Ask your doctor about crestor. Ameriprise asked people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. Welcome back. Support for higher minimum wage is just not popular with those making it. Millionaires giving it a thumbs up. It is a top story on the website. For details, allen wasler is here. Leading with a story of robert frank what you were talking about the survey they did with millionaires showing that more than half of millionaires actually support maybe a higher minimum wage or higher taxes on themselves. To sort of fix the inequality gap growing in america. Fascinating stuff and has the imagination of the readers. Second story on the hot list today, this thing is burning up all day long. Steve ballmer bought the clippers. Financial times reporting 1 billion in tax breaks, over 15 years and still that brought down the price of the sports team. Were getting a lot of outrage in the comments on that. Number three, also an outrage story, apparently walmart on its online site for Halloween Costumes set up a fast girl category. Not a costume. A fat girl category. Which caused all sorts of outrage and now its women plus sized and apologized profusely. What were you thinking . Anyway, thiss got the outrage vote on the website, too. I bet it does. Thank you so much. Back at headquarters. Tesla looking for ways for car buyers to charge up. They have three months to return the car. The waffle taco, grilled stuffed nacho speaking with the soon to be ceo of taco bell of the crazy but successful product lines. Welcome back. If youre eyeing a tesla model s but arent quite sure if electric car is for you, youre heaping to know the company is offering a Leasing Program where you can try it out and return fit you dont like it. Our phil lebeau has been following that story and joins us now with the panel with more. Hi, phil. Reporter hey, kelly, this is called the happiness guarantee. Basically, it comes down to. This if you lease a model s, you have three months in which you dont like it for any reason at all, you can return it. No questions asked. The one catch is that you cannot return it and then say boy, you know what . Im returning it so that i can lease a newer version of the model s that has the latest bells and whistles and updated software. That they say they will not allow. They believe this is also going to be through the new Leasing Program about 25 less expensive for the monthly lease. So well see how much of an interest the potential tesla buyers have in a Lease Program like this. Certainly the price point is going to be as attractive as the fact that they can return it within three months if theyre not happy. But there is no guarantee of happiness in this world, is there . Of course not. The tesla story im following governing telling tesla they cant sell directly to consumers, if Consumers Want it, theyre not. So good for tesla, but i dont see what is interesting. I was interested in the news. To me it sounds like its good and that it would draw more demand and interest. But the stock went down today. Any reason why . Sarah, there was a rumor floating around that their sales were going to be dropping in september. Nobody could ever substantiate this rumor, where it came from. Covering this stock, i see this about every three week. Somebody floats something out there. It hits the stock and eventually recovers a bit. But that was the rumor today. You know, i think in terms of demand, too. I think the additional demand that you get, phil, from a program like this, i mean, think about the last time you bought a car. Its practically a life experience. Youre in the car dealer for two hours, four hours, whatever it is. There is always somebody printing up forms. Honestly, i dont think youre going have the super cheap people out there trying to get away with a threemonth lease. These are people that want the car. If you look at the satisfaction levels of teslas, theyre through the roof anyway. I think its a sensitive from that standpoint. But real world, i dont think its going to increase sales at all. I think it might help some. Look, youre still going to get people who have an interest in a tesla model s who certainly have the means to leeson it. Look, this is not a cheap 300 or less lease to get a model s. Youre going to be paying upwards of 700 or 800 a month. In the three months, thats still the honeymoon period. Youre still going to love what youre driving. So from elon musks standpoint, this is pretty riskfree. Phil, well leave it there, again, the shares maybe wondering if there is something more to a sales slowdown. Only time will tell on that front. Phil lebeau on tesla. Thousands of users in europe protesting against a users tax. It is really about raising revenue or silencing free speech . And it was spooky weekend at the movies uijia finished first. And a preview of amc and some of the other big earnings. Well be right back. You can brik a lot of things from a trip around the world. But you cant always bring back customer data. Because many customers dont like it when their data moves around. Can i go now . If youre going to do business globally, you need a cloud that can keep your data where it needs to be. Today, theres a new way to work and its made with ibm. What if we finally had that would be amazing. Hey, what if we took down this wall . What if this was my art studio . What if we were preapproved . Shut up from finding to financing, howd you do that . Zillow. Welcome back. We begin here with a quick look at twitter, again, reporting earnings. Shares responding negatively. Its still down to the tune of 9 . Well be looking on the call to see if ceo does spell out the number of users they have that unengaged or not signed in but still viewing the platform. That may give people some sense of how broadly the interest in twitter is out there. But under pressure at this hour. While you were thinking, thousands breaking out in budapest, protesting government plans on an internet tax use. Rioters chanting throwing up old keyboards and computer parts. All of this because theyre quite concerned if i dont want less of something, what is the main way to get that . They tax it. This is the tax wire that you can understand what theyre doing from the governments perspective i guess. But its ridiculous. I sort of sympathize with the protesters. Are you going to take computer parts . Absolutely not. A symbolic gesture. Yes. Lets hope its symbolic. Obviously, this is an important story, if you look at what happened with arab spring and you look at what happened in terms of the internet, in terms of being really an instrument for change. I think any time you start suppressing that. Suppressing. Thats the word. There are some concerns about the government, whether or not its moving away or pivoting away from europe, towards perhaps a closer relationship with russia. Absolutely. All of that is important for people to pay attention. To also important is the rest of the week as we digest a kind of a quiet market today. What is the most important thing to watch for from your point of view . Continue to look at what happened with volume. Volume continues to be really dicey at this point. And i think volume is really going to tell the picture of whether or not this market stability is back. Sarah, briefly . A ton of earnings after the bell tomorrow. But the fed meeting starts tomorrow. A twoday meeting. Wednesday, theyre set to wrap up qe forever, for good, at least this version of it. And it will be interesting to see if the language changes around when they will raise rates. And if the fed is boring, on friday well get the employment cost, the most comprehensive measure of age growth. We have to leave it right there. Youll have to save it for afterwards or something. Everybody, thank you so much for being here. And fast money begins right now. Live from the Nasdaq Market site in new york citys times square, this is fast money. Im melissa lee. Traders are sim seymour, karen finerman. Twitter selling off shares after the companys number of monthly active users came in below expectations. Is this a buying opportunity . Twitters Conference Call starting right now. Suntrust monitoring that call for us. Well bring you the latest throughout the hour. Plus, as oil prices fall, Dennis Gartman is making a bold call about where the price of crude is headed in the longterm. 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