Transcripts For CNBC Closing Bell 20141030 : comparemela.com

barely staying positive. gives you a sense of how much people are trying to figure out what's driving these gains here and just as brian and man dimensioned, some questions again about the chip sector. for weeks this one, whether microchip supports moving to sector, philly stocks down 10 points now, comments about inventories, speaks to the level of nervousness abound. >> russell 2000 a lag guard today as well. see how quick our guys are in the booth. transportation rally, another point of view, down 1 06 points at this hour. >> i like rich peterson calling the october surprise, not the selloff but 9% snapback off the lows but two-year point, watch the transport the tell for the first part of the rally. >> even when oil is lower, moving in inverse relationship. into today. let's talk about it all in our "closing bell" exchange, jim lowell from adviser investments with us, eric from russell investment, melt from came write investment management, heather hughes from sun america funds and our up rick santelli. welcome to everybody here today. heather hughes, we were talking earlier with art karen, these four trading days usually pretty strong for the market. had very strong days here. do you like this market or are you skeptical of these gapes here? >> i love the gains and the correction was short lived thus far. if you take a look at earnings, 9 1/2% profit margins, over 80% beat earnings expectation and we have to look at that revenue growth. over 5% of companies have beat on revenue growth. that is also a positive sign. however, looking at the gdp data today, when you dig a little deeper two sides of this coin. we are lacking still on capital expenditures. the investment side of gdp is down 2.7% and that's the durable consumption. that still may be a showdown showing weaker. also the consumer two sides of this coin right now. >> now i'm looking at the vix, a little bit below the 15 level today, the question is this, having gotten through the hurdle of the fed yesterday, now that markets, stocks are generally rallying, does that mean that we go back to the old paradigm, the vix is going to go back down into the single digits or mean this time around, still see higher volatility and some sort of new trading patterns? >> look, normal stock market returns are extreme. we expect the volatility to be there and come in bunches. most of the volatility you find clusters after markets have already been declining. the vast majority of the best and worst days occur when the market's down, simply because the volatility is higher. that having been said, we think most of the opportunities right now, not in the u.s. where volatility is lower but this a lot of the countries around the world, global stock markets. >> really? >> this is interesting. because looking at the strength of the u.s. dollar, there's been some spec racing this might be the worst time for people to be looking overseas. >> u.s. is much more expensive on a valuation basis. long-term pes are 26. if you take a bassett of the 20% of the cheapest countries around the world, that basket has a pe ratio of around 9. much, much better opportunity abroad, russia, brazil, out of your honor >> jim lowell, tell me you bought visa yesterday. visa well represented in the megacap funds. we think selling on fear, as long as the fundamentals for slow growth, not no growth hold, will create buying opportunities, clearly given another good lesson in just that this month. one of the things we like to see is represent a center disappointing and visa beating much the reason being that consumers in represent a center tend to leave that business and start to bitheir own furniture, their own tvs when the economy takes a turn for the better and tend to use visa and american express to do that buying. we think the u.s. consumer renames reasonably good shape. as long as that's true, we think the u.s. economy could remain the driver to of a slow growth, not no growth trajectory. at least here, if not globally down the road. >> area related to that, what do you think we learned from the gdp report, the economy grew in q 3? >>ed good news is the government is no longer a significant head wind for the economy. private economy allowed to grow government helping a little bit, continues to support our thesis that you're going to see solid economic growth out of the u.s., that is going to drive earnings and push stocks higher. >> rick santelli -- go ahead, heather? >> solid growth and gdp on the surface good. most of the gdp came from an increase in government spending, i don't know if that will continue going into the fourth quarter and year end. [ overlapping speakers ] >> all that data came out ahead of the holiday spending period. i expect the consumer to trail in the third quarter, toward the tail end of it, but to pick up big time as we head into the holiday spending season. >> the savings rate increased to 5.5% in terms of the consumer for the quarter and those savings could help -- we could see an uptick in the consumer going into the holiday season from the uptick in savings. >> because, jim, the point about visa is that it would be hard to see that company doing well, up 10% on day people were worried about the health of consumer spending. >> no question about it the reality is the consumer, as heather just noted, in reasonably good shape, cash in their covers in terms of savings. tomorrow, income savings sentiment as well as spending data coming down the pike. so we will see what it has to say, but again that's backward, not forward-looking. expect the holiday season to be reasonably good. rick san telly, bring you in here, on a day that alan greenspan told our becky quick this morning he would buy gold given the end of quantitative easing here and of course, gold plunged, now below $100 an ounce. blame the strong dollar? do you blame alan greenspan, too? >> you know, listen, i get the relationship between dollar denominated commodities and the dollar strength. but i think that a lot of the commodity movement is well beyond any type of dollar influence. you know, energy, down here, we keep it simple. guys down here think the reason energy's down is because all these conflicts in areas that have a lot of oil, that that sector has just been over long for too long and it was a flush and i wouldn't disagree with that. you know, we had three relatively spotty auctions this week. maybe it's just that you had a fed meeting, maybe a week away from an employment report, i think that you're going to see that the tectonic shifts that we had around the middle of the month, they are gonna stabilize and we are gonna play the game again. one guy said, hey, slow economy is good for his stock position and i think you're going to see a lot more of that before we have the big vol timity moves. az for god, i will give you one date, november 30th, referendum in switzerland, i think alan greenspan would be helped if the swiss decided they wanted their national bank to hold more god. >> but rick, can we give more credit to the american energy establishment and the shale gas formation, fracking, in terms of oil being leader on not just due to a global slow down in demand? could it be a bit of both? >> oh, yeah, no, these the second story that they are now finally pricing in, that usa on the oil field and the gas field was here to stay. not only that the technology is going to allow the price structure to cement in place, find ways to do what they do especially tracking, at lower price levels, so, now all's we need is a better congress to allow more exportation and get those liquid natural gas facilities up and running. >> let me bring this back to some of the investments here. credit union on higher oil price, a lot of wealthier clients, typically put into structured notes, for example, linked to the price of oil. in other words, might there be more damage done to the general public invested in some of these prod doubles from the declines here? >> yeah. absolutely. we love commodities in general. we think it makes much more sense from a tactical standpoint. trend falling approach, so, a managed futures type of product. you can do that through an etf. you can do it through all sorts of products that are low-cost index based. the last thing you want is a high cost fee mutual fund or hedge fund. commodities in general we love. >> why do you love commodities? really surprised to hear that >> you don't expect a strong dollar to continue? >> no, no let me -- we love a strategic allocation to commodities but with a tactical overlay, right? so you want to have a trend following approach, have you in no commodities right now, to be clear. >> you love commodities, except when you hate them >> as an asset class a high percent allocation when they are doing well, which right now, they are not. >> eric what is your single best idea right now? >> i think i would go jump guest earlier -- >> areal? >> talked about europe. you have got a lot of stimulus hitting, economic news isn't as bad as a lot of people feared, valuations are more attractive in many parts of europe. i think it's a good story. i wouldn't bet the house on it but i think marginal, i would overweight europe. >> well. okay. >> buy a house there if the euro goes much lower. thanks, everybody. >> thanks, folks. see you later. >> 15 ins to ingo. dow up 185. as bill mentioned, 150 points of that is one single name and it's visa. not a bad one if you want to still read some general strength into this market. we should know, the nasdaq only higher by three points now. >> pay attention to the earning reports after the bell. visa out last night. another round of after-the-bell earnings tonight. starbucks, gopro, linkedin, groupon, all heading today's lineup. we will preview those numbers, things to watch for coming up here on "closing bell." also ahead, reaction to apple ceo tim cook declaring that he is "proud to be gay." two powerful members of the cnbc family who are also openly gay give their reaction. personal guru -- personal finance guru, i should say, suze orman will be here, along with massachusetts congressman, barney frank. stay with us. ♪ there's confidence... then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts means your peace of mind. it's no wonder last year we sold over three million tires. and during the big tire event, get up to $140 in mail-in rebates on four select tires. ♪ an unprecedented program arting busithat partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state. see how startup-ny can help your business grow at startup.ny.gov it's a fresh approach on education-- superintendent of public instruction tom torlakson's blueprint for great schools. torlakson's blueprint outlines how investing in our schools will reduce class sizes, bring back music and art, and provide a well-rounded education. and torlakson's plan calls for more parental involvement. spending decisions about our education dollars should be made by parents and teachers, not by politicians. tell tom torlakson to keep fighting for a plan that invests in our public schools. boy, a rally today and an unusual one for the industrial average, up 200 points now, mainly because of visa, contributing about 150 of those points. now, you know, the dow industrials is a point-weighted average, meaning the stocks that have the higher dollar values like visa, a $200 stock, will have the greater influence on the dow. that's why a single stock like visa can have such a huge impact on the dow industrial average today, because it is up as much as it s >> amazing that the dow and s & p track each other, given that incredible proposition difference. bob pisani is keeping an eye on what's behind this rally, bob, and some of the trading operations we saw earlier. >> the dow is up 1.2%, the s & p only 4, the russell is flat. dow not reflected what is going on in the market. good for visa. numbers were spectacular. bill's right, 22 times roughly 7, do the math, almost 160 points on the dow. look what's leading the market, u sits in the that doesn't impress me, i want a different sector to read the market. looks like fierce of lower interest rates, 1.9% in utilities, two critical groups getting hit, tech stocks a oil stocks, everybody keeps wondering about intel, i have been saying all morning that the semiconductors have had a terrible time. interso came out and talked about an inventory correction in the computing market earlier on, down 13 mrs. and intel down in simple think, the only thing anybody tells me all throughout the morning and i think that's right. microchip tech, remember, they blew up earlier, several weeks ago, they are going to be reporting tonight. get a little more information on what's going on, see that big drop in them. big oil getting killed again. oil down, good the overall market suspect collapsing, the energy stocks hit, particularly some of the big name, national oil had their earnings out, neighbors is out. so the energy stocks are weak here today. what's really helping the market? like visa, those financial name, so, we got the xl, the big bangs, generally upside, the largest group in the s & p 500, what matters. finally, guys, a brief outage in the processor that consolidates the quotes and trades at the new york stock exchange, the securities information processor, the sif. what happened is the conversationer the discussions between nasdaq and bats and the nyse got interrupted, couldn't send their quotes back and forth to each other, that has now been resolved, still don't have a reason why it exactly happened but i am told all systems are back to normal. guys, back to you. >> bob, thank you very much. also watching commodities here having a big day but the other direction largelism our jackie deangeles covering the action at the nymex. >> an exciting day in the pits, all about the stronger dollar, dollar index 86 handle, traders are telling me these commodity does not stand a chance right now. as a matter of fact, oil was lower, as bob mentioned, the prices, the settlement prices for oil and nat gas were delayed, traders saying it possibly was a technical glitch. we are waiting to get a statement on that the settle.prices are out now. crude down more than $1, $1.80, brent closed under $87 as well. the traders telling me today, this was all about the technicals, did see a bit of a bounce yesterday, some selling here, especially on that dollar strain. switching gears to talk about gold prices, gold got mum melled, closing under that key technical level, 1200 actual at the time settle. down $26. traders saying this was all the dollar, by all accounts, after the fed statement yesterday, do expect the gold prices to go lower from here. watch for that back to you. >> thank you, jackie. that weakness in gold be one reason why the biggest gold producer missed on he weres today? >> joining us in a cnbc exclusive, welcome back the president and ceo of gold corps. >> happy to be back. thanks. >> price of gold, how much of that contributed to your quarter, the fact that it has come off those all-time highs of a couple years ago? z he be $blooirksds y-- the business is certainly sound and we continue to make good cash earnings -- cash flow at these gold prices. >> a difficult period in your business. in the 60s, now down 12% to under 19. all-in costs, 1,066, a little bit off from the price today. how much does gold have to hold in here if not rebound for this to be viable long term? >> well, i can answer that in two ways. certainly for gold corps, we have guided and we reguided today that we expect our all-in cash costs to come in for the year at the low end of our range, around $950 an ounceful through the first three quarter, the averages 918. this was a very be a ber rant quarter and we expect a very strong fourth quarter and comfortable with that guidance. as we look forward, we just started two new miles, both low cost, expect those costs to go down and so the margins to increase at a flat gold price. but your point is well taken. for the larger industry, it's a challenge at these prices. and i think that's why you will see supply coming off and you'll see mine supply start to impact the gold price. >> i was just gonna ask you, if this trend tops, if the dollar continues to strengthen, presumably pushing the price even closer to your production level price, what do you do? you just cut back on production, right? >> exactly. you look in your mines that, there's a lot of variability knit a mine plan and we can focus on the higher grade material that makes good money and stop making ounces that are trading ounces per dollars. i think straight has been doing a good job of that i have to say that i don't think you're going to see gold price trade much lower than this. i would go back and look at the last three or four times that it's dip bead low $1200. we have seen tremendous physical demand from asia, particularly china and i think we will see it again. i would be interested to see what happens in the next week. i think you will see it bounce back up. >> always good to see u thank you for joining us today. >> thanks for having me. thank you so much for being here. heading toward the close, we got about 40 minutes left in the trading session here. rally day. the dow up 197 points. yes. much of that because of visa. by the wake the second biggest contributor to the dow gain today? now we know that visa has contributed 150 points to that rally. johnson and johnson is number two it's contributed five points. that's how distorted this rally has been, at least for the industrial average today. >> yes. tim cook, meanwhile, officially coming out. our suze orman, personal finance guru and outspoken figure on gay rights give us her reaction to this announcement next. after-the-bell earnings, starbucks, gopro, linked in, all on deck, certain to move on their news. those for you coming up in a moment. stay tuned. 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"this is getting attention across the spectrum. here's one tweet not too long ago from former president bill clinton, who tweeted from one son of the south and sports fanatic to another, my hat's off to you, tim cook, and linked to that's xachl lots of conversation happening around us today. >> personal finance expert, suzie orman, openly gay and advocate of gay rights. >> incredibly, coincidently, hosts a show called ""the suze orman show"" on cnbc, my dear friend, suzie orman joins us to talk about in.you came out in ' 07. tell us what tim like cook is going through today. i'm sure you were relieving that time seven years ago. it was a little different for me back then, but in regards to tim, it's interesting that this is even an event, if you have to think about it. but is an event and what i think is so great about this is, you know, bill and kelly this now opens up the world of possibilities for those who still haven't been able to accept the fact that they are gay or they want to tell somebody about it and now, they can say, hey, maybe i can be a ceo. maybe i can do this. so it's wonderful that he did it. >> what about his comments they thinks it makes him a better executive? >> it does make him a better executive, kelly, because now we have a man who is standing in his truth. he doesn't have to be ever afraid of anybody asking him the question and how is he gonna anticipate it. everything that everybody needs to know about him is out in the open now. so, a stronger leader is a better leader for the company, if you ask me. >> you, my dear girl, have been a role model yourself as well. incredibly successful as an author and on television, we all know that. when you came out, after you came out, i know you worried about coming out. did you experience any limitations? did some of your fears come true after you came out? >> i have to tell you, bill, i came out simply because a writer, debra solomon "the new york times," thought that nobody knew that i was gay so she writes it and it wasn't a big deal, thank god, that everybody's going, oh, my god, 'cause i never really have hidden the fact, i just never said it outwardly. but the ability to have said it outwardly for me took all the worry away of when i would have to say it and it made me stronger. so there was no negativity about it whatsoever. if anything it led to all the positive stuff that followed after that >> susie acre mazing how quickly the general perception about this issue has changed in a very short period of time, even thinking back to how much more difficult it might have been for you in 2007. in this day and able, do you think this tim cook announcement is as big a deal as it might have been several years ago? >> a few years ago, it would have been a seriously big deal, but i'm not sure it would have been accepted in the same way it's being accepted today. i think it's a big deal today in a positive way more than a negative way but don't ever forget that just a number of years ago, ellen degeneres lost everything when she told the world she was gay. now look at her. but when she did it, everything was gone. >> what is your vicious by the way, for other executives, for people out there, generally speaking? is it almost easier if you're the ceo of a company because you can just kind of come out and declare, as opposed to if you're an employee, might feel uncomfortable and not quite sure how to group kate that with people? >> kelly, it is not the position that you hold that makes it easier or harder, it is how you feel about yourself and those around you. i hope by tim coming out that others will really take his lead and make this the time that they do so as well, because the more people that are proud to say that they are gay, the more there won't be an i shall by it in the same way nobody ever looks at anybody and says, oh, they are homosexual. one day maybe you will look at somebody and say, oh, and will have nothing to do with their sexuality at all >> suze, remiss not to ask, an important point here about people in gay unions or however they are labeled there is a really big personal finance angle here, isn't there, because there's still a big difference between being married in many case and being in a union. >> yeah, you know, the estate tax ramifications for myself alone, when gay marriage became legal, marriage equality became legal on the federal level, i have to tell you, one of the greatest days of my life, because now i know everything they've worked so hard for i can leave to kt with no estate taxes, so, it's a really big deal. social security, health benefits, joint tax returns, all of it the day has got to come where it is totally accepted. and tim cook took us all one step closer to that. >> indeed. always good to see you, my friend, my best to kt as well. >> thank you so much, suze. >> all right. >> suze orman joinings as well. >> it would hard be the first time this month we have seep a move of that magnitude, the dow is the only one displaying the strength thanks to visa. the s & p and nasdaq a much quieter day. curious what chartists are doing with this, one stock causing a lot of the gains today. do you just write this day off as a result? i don't know. when we come back, as the fed ends economic sometime lurks the european central bank is ramping things up across the pond, but will european stocks benefit from central bank stimulus the way u.s. equities did from the fed's easy money policy? dennis gartman and greg begin coming up on that. our live poll is now open. we want to know which market you think will do better over the next three years. this goes back to the discussion we were just having at the top of the show. the question is, the u.s. or europe? the better place to be for the next three years. start now, cnbc.com/vote we will be right back. where the reward was that what if tnew car smelledit card and the freedom of the open road? a card that gave you that "i'm 16 and just got my first car" feeling. presenting the buypower card from capital one. redeem earnings toward part or even all of a new chevrolet, buick, gmc or cadillac - with no limits. so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com 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. start with visa and master card moving higher after posting better-than-expected quarter results. visa announced a buy back program. those stocks, visa in particular, driving most of the gapes in the dow today. bristol-myers squibb rising after reporting positive clinical trial data on lung cancer drugs, shares up by 9%, near session highs for the day. harman international, another top performer, audio productmaker for the auto business reported better-than-expected results. also authorized a three-year, $5 million stock buy back programs. shares up by about 7 1/2% on the day's trade. back over to you guys. >> dom, thank you very much. as we all new york the fed ended its bond buying program yesterday and since they started taking these extraordinary measures in december of 2008, the equity markets in the u.s. have been soaring like a rocket. now, it's widely expected that the european central bank will pursue a similar program to quantitative easing and does that mean that the chart of the european markets will look like this in a few years? >> you have already heard some guests weighing in on this. we want to know which stock market do you think will perform better the next years in? cnbc.com/vote to weigh in as we begin the segment, joinsst is dennis gartman and greg begin much familiar refrain to hear people say europe was 18 months behind the u.s. all year until, bam, the markets took a turn for the worse here. still the case people can assume their recovery, stock market is going to follow america's if the bond buying program is on track? >> i wouldn't assume t quite a few things have to go right. i would say the ecb is more like four years behind the fed as opposed to a year and a half behind the fed that means ever you have to be patient to work in the united states, several thing also to go right. it didn't just take the fed quantitative easing, had to do a lot of it and have support from banks that were on the mend and support from fiscal policy. in europe, you have only really got little bits of all those three things working. they have only just finished the stress test so they are only just turning the corner in terms of bank health. fiscal policy is still as much a hindrance as it is a help and the ecb is still only talking about quantitative easing, haven't said they will do t quite a few things that have to go right before you can write the happy ending for europe as the united states. >> maybe premature asking this question. let me ask dennis anyway, the trader here, what do you think about the european market if you accept the premise that quantitative easing is always good for equities? >> well, let us hope they go ahead and move forward with quantitative easing, bill. the germans have been terribly reticent and i think absolutely wrong in their reticence about not expanding reserves from the ecb. they have done untold amounts of damage to the economy. that is why it has lagged, not just -- also, there's terribly difficult reforms that have to be accomplished, but if those things happen, greg i think put it out very clearly if all of those things happen and if you do get quantitative easing, then i think european stocks will do reasonably well. probably still would be better to be invested here in the united states, but if you must be invested in europe under quantitative easing, go ahead and do it, at the same time, make sure that your short of the your rocker the real trade to be long of the stock market and short of the euro if they do kwaupt tatetively ease that will be detrimental to the euro and very good for the european economy. >> and we were just looking at the vote of our viewers now, they are split. they -- europe and u.s., 50/50 pretty much right now. greg? >> yeah. let me add another thing that i think is unique to the european situation and makes it hard to compare the united states and that's the politics of it at least in the united states, notwithstanding the sniping from the tea party, the fed had a pretty free hand to do what it had to do these past six years. the european central bank continues to be hemmed in by a very fractious group of political task masters. it is not just dennis correctly pointed out, germans reticent to move on that worse is the possibility next year, you will have a bunch of populace parties elected. in greece, for example, perhaps they renege on their ballout agreement and you have once again an existential threat to the euro. what if the national front whips in france in a couple years time? what if alternative for germany starts to gape in the german polls? political risks at work in europe, not only make it harder to do qe but mean whatever qe ecb does may be much less impressive and vigorous version than you saw in the united states. >> he is herding cats over there. exactly. >> is that you can see it, for a lot of people, might assume, well, okay, takes while to get -- for all these things to fall into place, just makes it a better entry point now in the hope that that will all fall into place, phone it doesn't, the likelihood that europe perhaps has a japanese-style outcome as we watch those, you know, price indexes sink across the continent is probably higher than we have really appreciated, isn't it? if that's the case, should people just walk away from it all together? >> that is the real fear, that they will just follow what has happened to japan. they won't probably ease as aggressively as we did here in the united states. they won't accomplish the reforms that need to get done. they will do everything in a half-intended manner and your point, kelly, was exactly right. this is rather like herding cats. you have a lot more political dissension, a lot more separatist movement that is come about. greg talked about the various far right-wing and far left wing political parties that may be or may not be coming to power. it's a very ten white house place. if you have to be an investor in europe, do it but you're still going to be better off being here in the united states, i'm afraid. >> before we let you -- greg, quick thought, and then a quick question. >> just remember that in the fall of 2008, early 2009, things looked very dark in the united states as well. you know, the economy was in free fall. it looked like half the banks were insolvent. we didn't know whether fiscal stimulus or the stress tests were going to work. it was a difficult time to dip in, but tended up being an awfully lucrative time to enter because all those things went right and they went right partly because the political system responded the existential threat. if you believe that european politicians tend of the day will do the right thing, even if they need a financial gun to their heads, this is probably the time to buy. >> before we let you go dennis, you probably heard, alan greenspan on our air this morning saying he would buy gold at this juncture the end of qe. >> is that a cackle? given the strength of the dollar and the inflationary implication the easing money policy and everything? >> i will say the thing, if tough own gold, own it in euro terms, own it in yen terms york think you want to own it in dollar terms the dollar is preeminent, think we are only in the third oink of a bull market in the dollar and not good for dollar terms. on the other hand, if you take dollar euro back toward par and i think that is very possible over the course of the next several years, gold in dollar terms or gold in euro terms may look very good, but i think mr. greenspan wanting to own gold in dollar terms is probably an ill-advised trade at this point. has been for two years, likely to continue. >> doesn't matter to gold core, thinking back to chuck who we had on, gold in yen terms as well. >> that's true. >> should and it wouldn't, they should have done hems, dropped their hedges several years ago and i think one of the problems with the gold money industry, they could have hedged production for years forward and they chose not to. shame on them. >> we close the polls, 59% of our viewers like the u.s. market the next three years, 41% like the european market. thanks, guys. always good to see you. thank you. >> always good to be here. 17 minutes left trading circumstance the dow up 185 points off the highs of the session here. >> then going after the bell today, starbucks, go pro, linked in. and an update on the nurse in maine who defied that quarantine order and went for a bike ride this morning. where is she going next? 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[bell chime] a little less than nine minutes left in the trading session here, dow up 209 points a lot of that is visa, after the 10 points last night. visa contributing 150-plus points to that 200-point gain today. joining he me now, david, independent investment consultant and dan. tell me you bought visa? >> both sur frigts upside, because the consumer sector has not been particularly strong this earnings season no the a lot to be positive on a bit of a disconnect. >> signal a strong consumer or not? i think it doesn't because this means -- leaning more on credit cards. >> how many people are paying them off? that would be an interesting statistic, might see the market down 200. you were saying look how strong that dollar is? >> the strong dollar is the indication of the fed basically ending the quantitative easing, maybe later on interest rate rise. you have got these offsetting forces now. on the positive side, you have got confidence. you have got earnings and you have got manufacturing. what's missing is what you gentlemen were just talking about you and dan, retail sales. retail sales, they haven't been spending the money. china, europe and finally, the low pricing power and the low inflation rates. that's basically what's holding the market back, but you could see, if you get one glimmer of hope in any of those four things holding the market bark the market could live through year end. what do you think? with if we believe quantitative easing was a huge catalyst for this market rally the last five years, does that mean the catalyst is gone and the rally's over? >> conflict there. everybody talking about this liquidity-federally, last timed themed qe 1 and 2, the market pulled back, 10 to 12% each time there is that concern. we arguably had that pull back last week, maybe that's priced in. seen people come back into the market. i think what we will see between now and end of the year is increased volatility. it has been a very low-volatility market all year long, a number of moves greater or less than 1%, somewhere hovering well below the historic norms, if anything, probably trending higher, a couple of pull backs but increased volatility both ways. you still would buy japan? >> still would buy japan. it's basically an asset reallocation play, had stimulus in the form of the weekend and in the form of the expansion of the bank of japan's balance sheet. next step is for this gpif, government pension insurance fund, which as you snow 1.4 trillion, they have only got 12 1/2% of their money in japanese equity, supposed to happen in september, announce the take it up to 2025, 20, 25%. now scheduled for december, bill that's why jap. >> sold off, but when they said it is coming, it rallied back again, but a great twist last year, up 56% this year, down 7%. so it's not been -- yes, we do like japan. >> let me ask you about energy stocks, oil has been getting clobbered but we know energy is becoming a big deal on the u.s. economy. unique business, right? any time anything's on sale, nobody wants to buy it. energy got down, crude traded down, below $80, seeped to have found a level. energy stocks went on sale. they got priced appropriately, seems like room to run, people are taking a hard look at them. that is one of our favorite sectors at this point. guessed right. i thought so. >> the drillers go along with that, bill, i think that's good area also got hammered, hall burnt up 30, 40%, all the way back to zero, a place you can put some money as well. >> there we are. consensus. good to see you both. >> nice to see you. happy halloween. >> matching ties. mine will be here tomorrow. that's the real halloween. let's face that. we will come back with a closing count down. dow getting stronger, up 213 points now, then earnings reports coming fast and furious. at the top of the hour, have the numbers and instant analysis and market reaction coming up on "closing bell." you are watching cnbc, first in business worldwide. can you start tomorrow? yes sir. alright. let's share the news tomorrow. today we failrly busy. tomorrow we're booked solid. we close on the house tomorrow. i want one of these opened up. because tomorow we go live... it's 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. 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(vo) well played, business pro. well played. go national. go like a pro. 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. ...the getaway vehicle! for all the confidence you need. td ameritrade. you got this. welcome barks inside the two-minute mark here the dow, what happened today, this rally, we are getting close to the high for the session once again, about 220 points. but again, it's been about visa today. let's show you the visa chart, up about 10% today, monster rally, accounting for more than 150 of those points. and that was earnings last night. now we get earnings tonight coming up in a few minutes from starbucks, from go pro, from linked in and from groupon, all trading higher, especially that groupon stock, bob pisani. >> the key thing about today, good for the market, boiled down, market doesn't freak out. and the fed was very hawkish yesterday. they could have sold off today, worries about higher rates, they didn't. maybe the market is getting a little more adult about the way they look at this good for them. it was bifurcated, pointing out right. >> yes. >> one stock. >> utilities led the market, huh? utilities, health care was strong, defensive names were strong. >> traps port, did you see that, down today, even though oil was lower. >> semiconductors got hit badly, intel was a major problem. and we had oil stocks down. so it was a very split, unusual market. what you can say for sure is some day the dow does not represent the market very well and this was it. three stocks advancing are, but two declining. that's, you know, okay, not great. 3-2 advancing, declining, not particularly great. see what groupon has to say after the the close. yep, very interesting. a lot of very interesting companies to report those earnings. thank you, bob. see you later. go out on a strong rally today, no matter what the cause, the industrial average up about 220 points, about 80 points away from the all-time high. stand by for those big earnings reports coming your way momentarily on the second hour of the "closing bell" with kelly evans and company. i will see you tomorrow. thank you, bill, welcome to the closing bill, i'm kelly evans, how we are finishing up another pretty strong day across wall street, the dow jones industrial average of 222 points on the bell here, a gain of 1.3%. as we have been mentioning all day though, a big chunk of that due to the strong earnings growth and the share reaction to visa. that contributing in the range of 150 points, probably more than that now on the close. the s & p meanwhile actually having a accident day, up two-thirds of 1%, russell up 10 points and nasdaq, 17, we wait for big earnings reports. get to it, michael crompton here from philadelphia trust company, welcome, michelle caruso-cabrera and john najarian and with us, "fast money" trade brian kelly. welcome, one and all. brian, harass but this market before we get earnings or what? >> sure. listen, i have called the u.s. stock market the peter pan rally and by that i mean as long as everybody believes that everything is fine that it is, nothing changed from a week ago and frank lakers week ago, when we had the big selloff two weeks ago, nothing had changed two weeks before that the only difference was people started to notice that inflation ex-spec phrase falling. people started to notice that oil was falling. people started to notice that europe was a problem. all those thing reese international airport same. people don't seem to care about them. >> is this a fed-fueled turn around here or just a liquidity convenient back then? in other words, maybe things weren't as bad as it it looked on october 15th? >> i think things weren't as bad as they look and not as great as they look now. to me, the fed statement was inkretdably hawkish, a lot more hawkish than most people thought, but it was the right thing to do because you have to stop the bond buying so you have some fuel later on down the road. >> i have to say, michael compton, a strong performance from the dow again, noting visa contribution, the other indexes, too after the statement that was pretty roundly recognized as on the hawkish side from the fed yesterday. the fed has handed the ball off from itself to the market the market is taking the ball and running, earnings are good, revenue is mixed, earnings very strong, gdp was strong, employee wasn't bad today, the naysayers, bears out saying october, october, october, october, the bears are now back in hibernation for good and i think we are going to have another -- a great day tomorrow, we could hit new records, the end of october. close enough. >> only 100 points off. october was the month, never was right and wrong, some people might have gotten carried out in the middle of it all. . there's no doubt a lot of them were carried out wednesday the 16th, that's when they flushed bonds, the folks that were bears on the bonds flushed out today, kelly, took the yield below 190 on the ten-year, same thing with crude oil, except in reverse. so a lot of folks, i haven't seen the confluence of that, that much liquidation that many billions, hundreds of billions of dollars, had to be ct as, commodity trading advisers, cpos, commodity pool operators and things like that carried out on their shields those days and market turned around, bullard's comments didn't hurt. >> and the hedge funds. the hedge funds killed on the 15th. i got scared on the 15th. i even sold. really? >> i sold oil stocks because i saw oil dropping below 80, 75 or 70, there would be a feeding frenzy on the cell side of soil. >> threw in the towel? >> i took some money off the table. >> listen, for oil though, are you still in that trade? >> no actually -- i think it goes 75. so i'm wondering, what's interesting about today is the market just disconnected from oil. oil was down today, the market went up. very interesting. i didn't think that was gonna happen but happened so that maybe telling us something, maybe telling us we have a new rash time to wo-- par timnew pa work it. >> what was going on in the german market? >> bad day. the inflation data is concerning, ditto for spain, focused on spain, three months now, seen full-on deflation in spain. even though their gdp data was okay. the market gets fixated on one set of data points for a certain period of time, right now it's inflation. debate we were having last hour, which was u.s. versus europe as the trading opportunity. now, earnings starting to hit linked in first out with its quarterly results, julia bore citizen has the numbers. shares look negatively here. >> what we are seeing now is just the revenue and earnings numbers, earnings beating estimates, 52 cents, adjusted earnings per share, versus 47 krerngts the company's up guidance 44 cents per share. revenue beat estimates, 568 million versus 558 million expected, gonna dig more into the results, get back to you, especially on the user numbers. kelly. back in a minute. >> julia, thank you very much. grabbing these notes, the earnings haiku into the kwaeshlgt the stock has traded down on four of the last six company earnings, well, you can now make that five of seven. again, dr. j, looks like a negative response. by the way, linked in was trading, some of the misses we saw from the likes of facebook earlier. >> already taken down a little bit. like you say, facebook, twitter, yelp, a lot of the stocks, whether they are social or just stocks that are catering in that internet space have been taken down, throw netflix in for good measure. we will keep an eye on these, got starbucks earnings, go pro coming out. >> hit that right now i want to come back and talk about what's happen october internet space. bucks. dom chu has the numbers. >> starbucks shares down about 4% in after hours trading on about 127,000 shares worth of trading volume. they report earns of 74 cents a share, in line with analyst estimates. revenues, however, coming a bit shy, $4.18 billion. analysts on average looking for 4.23 billion. so a narrow revenue miss. comparable store sales were also a 5% gain. that misses the average analyst expectation for a 6% gape in comparable store sales. so, those right now, we will dig through some of the more relevant headlines. for now, those shares of starbucks down 3 1/2% on 175,000 shares worth of volume. >> dom, thank you. everybody, don't miss an exclusive interview with starbucks co howard schultz tomorrow at 9 a.m. on "squawk on the street." and on the back of this report, going to be fascinating. let's get some reaction from rob plaza, joining us from key private bank. rob, a revenue miss? >> the top line wasn't that big a deal. the comp miss is something that stands out. that's part of the algorithm that justice 290, 25 times multiple starbucks has about trading at. michael? >> i think it's interesting, the food stocks had trouble, hershey trouble, trouble today from kraft, now trouble from star but commodity prices are down, something else working here. i don't know what it is. maybe the consumer is not -- consumer tastes are changing or shifting. r these companies not able to get price because we are not in that environment where the consumer can take it? >> i have to dig deeper into what the earnings report says and what management says on the call, but typically, your core starbucks customer has a little bit higher income. they are a higher income level and they can withstand those higher prices. >> so, when you look at the breakdown, 5% sales growth, across the markers, emerging markets, china, asia pacific, all up 5%, even across the bhoord board. i don't know if that met your expectations across the world. >> that contributes to what is going on. the business is really america's retail, accounts for 75% of revenue and operating profits. so, that's what's gonna drive the stock here. >> operating margins look like they were up pretty good, 20 1/2, up 280 basie point, i believe is what it says on the report. that should be something that if the stock does get sold off too far, people will focus on that number as much as anything else, kelly. >> do you have a sense, dr. j, as to why this one might be coming in a little soft? is it around the edges, in other words, or just seem like they couldn't stack together the components of this global business? >> well, and i don't know what -- first of all, it's not much of a miss. so, to see them down $3 where they were down 3.60 or so early on, it's bounced to being a loss of $260 here and i think focused in some of those things like the margin. >> market punishing near misses. >> a great point. let's actually switch gears finally to go pro, its results. this newer to the market, dominic chu what could be watching a rare outperforming name after hours here. >> is. right now, the go pro shares are up 8%, 232,000 shares worth of volume in the afterhours so far. go pro announces earnings of 12 cents a share for the quarter, beats the analyst estimates of 8 cents. revenues, 280 million, beating the average analyst estimate of 266 million. we are still looking for some other relevant details but for right now the options market was already pricing in what could have been a plus or minus 11% move in the stock going into this numberful remember, this is only the second earnings report they have made since being a public company. the last time around, the shares were down 14 1/2%er the day after, right now, up 8 1/2% in the after hours trade, kelly. back to you guys. >> dom, thank you. more reaction to these through get nicole sinclair from the street to weigh in. nicole, great to see you. what jumps out to you look this is a pretty strong report amid a sea of red thought this after into. >> remember, this is the best performing ipo, up hugely since june. i think that really key, as dom pointed out, the revenue number. expecting 38%, obviously, the mid-40s surpasses the whisper number. to point sought the gross margin, a strong 45%. this is key because go pro is coming out with a hero 4 products this season, lower-priced items here, we want to see how that affect the margins going forward. even oppenheimer, which initiated with a sell, was positive on this quart and the fourth quarter. they actually are wore worried about the long-term view in 2015 and beyond. i think this was a searle report at first glance. i wonder how many people look at go pro as a port in the storm this holiday season. granted, trending in the multiple of next year's earning, again, they can put up numbers like this and if it looks like this could be a hot sell they are holiday accept a, perhaps that does put a floor under the shares here? >> i would point out that apple, even at its peak pe, was about 50 times. that's when it had 50 to 60% revenue growth. we have to be wary here. go pro is off its highs, but it still is steep here. i think that right here, also seeing priced in content multiple a lot of long-term bulls on the stock really believe that the social media strategy for go pro will play out. that's important to keep in mind. right now, all about the holidays, a sexy stock a sexy ipo. certainly this could be a positive story during this holiday season where we are seeing really mixed results. >> the charm of small numbers, right? this is such a new company. when you look at their gross profits this year versus one year ago, it's double. they are just growing so fast. now, we focus so much on what were the expectations for this and the future, still phenomenal to see year after year how fast. >> tremendous franchise and they up the space. there's no one else competing with them now when a little competition comes in you will see the numbers come in. >> brian? >> yeah. i will give you some insightful analysis. i think people stopped buying coffee at starbucks and decided to get their rush by fillifilmi themselves jumping off a cliff. all i can conclude from both of these items. wait until we throw groupon on to. this those earnings are hitting the street. jewel jar boorstin has that report. >> top and bottom line, adjusted earnings per share, 3 cents, better than the 1 cent wall street expected. revenue beating estimates, coming at 757 million versus expectation of 749 million. 27% increase in revenue over the prior year's quarter. one quick note, kelly, about linked in, talking about that stock being down that decline really does seem to be about the q 4 guidance. linked in's q 4 guidance for revenue and earnings per share slightly below where wall street had been expecting it. q 4 guidance earnings per share for 49 cents versus expectation morse like 52 crept percent share there. linked energy just like the other social media companies, twit and facebook, hurt by that guidance issue. back to you. a great point, julia and looking at the shares. now, dr. j, linked in look like they are fighting in the the positive? >> well, this is one that occasionally has those big flips during the after-hours session, kelly. and this along with go pro were both punished coming in with a lot of folks looking at and making up in some cases like that michael schumacher story in the case of go pro, the kitchen sink as far as bad news, as i said, making up some of that bad news. in linked in's case, i don't know who their peer is that really does what linked in does as well as what linked in does it >> michael crompton, expand on that point, if you could. this quarter does not seem to be a banner quarter for the social media internet space. is that just a -- are we just in a period of maturation or something else going on? >> i think in certain subsegment, a period of maturation, but some segments, like linked in, going to see them continue expand and earnings are going to continue to grow. >> you use linked in? are you on linked in? >> i'm on t not sure i know how to use it. >> what but guys? people use it? >> i almost never use it. >> i post articles to it, kelly and people are always asking me, you know, if we can connect via linked in. no, i don't use it as a business at all. it is true. interesting, their influencers' post seem to get a ton of attention, eyeball, great people there jon fortt, one of the people doing it. yeah, there's actually quite a bit of good content there. maybe that becomes a morphing of the strategy over time. i don't know. brian kelly, for you. digesting, sipping through some of these earnings here, which one has captured your attention? >> i think starbucks in particular. why? because i think that shows you what the consumer is doing, or the a least you can extrapolate a bit. see what the personal consumption expenditures in the gdp report were this morning. so, for me, what i'm focused on. that being said there's one person you do not want to bet against and that's howard schultz, anybody that can turn a business around, it's him. >> a point. brian, thank you. actually, stay right there got much more on this huge day for after hours earnings and the stock market, the surprise rally today. plus apple ceo tim cook coming out publically. look at the impact of his announcement on his company and corporate culture just ahead and get barney frank's take, served as an openly gay congressman for two decades. stay here on cnc, first in business worldwide. 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[ male announcer ] see how schwab can help light a way forward. so you can make your move, wherever you are. and start working on your next big idea. ♪ welcome back. breaking news oppositety group. dom chu, what is going on? >> citigroup is revising what it reported in terms of third quarter earnings. it now says it was 88 cents a share, previously reported at 1.07. also, they are saying this third quarter net income is now $2.8 billion. it was previously reported as 3.4 billion. those third quarter results were hurt by a $600 million increase in legal accruals says citigroup. also, some headlines coming with regard to their capital ratios, saying that third quarter tier one capital ratios now 10.66% from a previously reported 10.74%. so, again, earnings are now being taken down. they have revised their previously stated earnings to 88 cents a share from 1.07, net income to 2.8 billion dollars from the previously stated 3.4 billion and reason they are giving is they were hurt by $600 million worth of an increase in legal accruals. so again, those are the headlines crossing for sitny now. shares reacting to the downside by 175% in the trade so far, kelly. back over to you. >> dom, thank you very much. this is a big surprise and frank lake, pretty big adjustment. what do you guys make of it? >> stock was just a couple bucks off the 52-week high and looking like many of the financials have looked in the last two weeks, kelly, like they were gonna churn their way higher. now with this, it kind of put leadership in question there because there's been a lot of questions circulating about it. >> a huge miss. there's a control issue there internal control issue there got to be addressed. i would imagine someone senior is going to lose their job over this. >> not just a miss, a retroactive miss. >> an accrual that everyone knew about you don't finally figure out you had as 600 million legal accrual. >> you own citi? >> i was worried about their exposure to europe. i sold mine. >> brian kelly, what but? >> enormous problem, citi specific, this is not stock market enormous problem but for citi, how do you not know? listen, i know lawyers give bills all the time, got to know you have this bill coming in know it is an accrual it is, a control issue at citi bank. it's a huge, huge problem. now the only other thing i would say you can take it on a macroscale is that the legal costs in the financial system are holding the economy back. so that would be the one takeaway i would take on the big picture. the regulators criticized them for their controls so that criticism is obviously well founded and still occurring, having a big affect on the companies. >> talking about control issues. >> right. >> several issues out of mexico keep cropping up. when that first broke, the number, in terms of revenue, remember, was small, but you look at the size of the fraud at the time, you thought, wow, are there control issues there? >> this is a control issue with the home office. >> right. >> the home office. this isn't mexico. >> to michael's point there are things when you're a global business like this that you can say well, that was over here in this silo and we were blinded to it but something like a legal bill, kelly, of $600 million, that doesn't stay under the radar, something they are talking about every board meeting about why is this so big. they are not talking about where did this come from? how did you guys hide this? >> i guarantee the ceo was looking at that every day. yeah. >> so, how do you, if you're citi, turn this, brian, into an iss issue banks too big to manage. how do you keep this from being a corporate execution issue? can you? anything that can be said beyond the points you just made? >> i think the problem you have is they are too big to succeed at this point. i would say this does seem to be a citibank issue, very specific to citi bank. i don't think you can extrapolate this to anybody else. there's clearly a management problem there. so how do you solve it? you change the management. the trade, if you're looking for a trade, is if indeed somebody does get fired over this and somebody loses their job, that's when you buy the stocks, things are going to get better. >> i would disagree with that i think there are silos within citi bank, can't get through them and those silos will remain, they fire one or two people. it's an epidemic within the structure of the company and that takes a long time to get over. >> thinking again through the risk for the sector, this becomes fuel and fodder for anybody looking to say that the u.s. banks, big guys, are still too big to manage, still too complex. >> i believe it is specific to citi. absolutely. >> not going to be lost, people pile on. >> no question about that. >> we are gonna go to break and come right back have more details on this news. pretty big adjustment to its earnings. we will be right back. today could be the day. the day we give you hope. relief. a cure. today, we believe every life deserves world-class 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 we're ready for you with a second opinion or a same-day appointment today today today and everyday. call today, for an appointment today. ameriprise asked people a simple question: in retirement, will you outlive your money? uhhh. no, that can't happen. that's the thing, you don't 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. joining us is kayla tausche. what happened in this quarter? >> as you know and viewers have seen on the screen, citigroup is taking down its net income for the third quarter to 2.8 billion from 3.4 billion. a pretty sizable adjustment, attributed to what the company called rapidly evolving regulatory inquiries and investigations, including very recent communication with certain regulatory agencies related to previously disclosed matters. now the press release goes on to say that there will be more details expected in a 10q, a bank's quarterly regulatory filing, says that is expected to come today. any moment, cons once that gets filed, we will come through that and get you the details on exactly what regulatory matters citigroup is facing. many banks are currently under investigation for alleged rig of certain foreign exchange matters and as well as certain interest rate bench marks, lie lie bore and other interest rate benchmarks in other jurisdictions as well, ongoing matters and not just citigroup under the microscope for some of those issues but it does appear to be a costly problem, whatever it turns out to be for citigroup resulting in kelly, a $600 million charge against the company's profits for the third quarter. >> thank you. stay right there if you would. joining us on the phone is jeff hart, a principal at sandler o'neil. i'm going back to monica langley's article in the "wall street journal," a veers of interviews with michael core vath over the summer, says citigroup must prove we can manage ourselves, i have got to get the inside right. and this happens. >> appears they got information from some regulatory body, the wave the rules work, if you get new information between when you report earning and file your q or k, tough go back and restate. it would imply conversation with regulate, accelerated, settlement was reached or something happened after the the quarter closed between them and regulate as posed to this being something that happened during the third quarter they messed up accounting on. a material change after this reported earnings they now have to go back and reflect. shouldn't be aghast that it's a retroactive miss? >> the reason is aet rhett throw active miss, i don't know more than you do looking at the press release, but look ac it, looks like something that changed from when they reported earnings a couple weeks ago to now. when that happens, you have no reason to put it into the restate going backwards, can't hold onto it till fourth quarters. something effects related, could it potentially be something from the fraud issues they had in mexico, although this would seem like a big number for it to be that s it maybe a part of lie bore? it would seem to be tied to one of those investigations. but jeff, here is the curious thing, too, i don't quite understand a lot of these settlements announcements as they have come out, often, there's been a tip from somebody at the fed, federal agency handing it out, articles, a sense that's coming, et cetera. and often, applied more than one person, in each case, they do pick kind of a first player to move forward on this. and this seems to have caught everybody, yourself include, by surprise. >> well, expecting them to restate, that's clearly a surprise. but we have $600 million of litigation reserve built in our fourth quarter estimate, north of 1.5 billion next year, we know there's going to be more, more a matter of when the timing comes through. if this were a regulatory or settlement out of the blue, thought out of the wood, won't be anymore, then a lot more concerning than we have got over $2 billion built into our forward 12-moment estimates already a part of this, being recognized early, in my mind. why the stock is only off by 1% based on the news, do you think? >> i think so and we will see, you know, once the q comes out, in theory, should be this afternoon or this evening, we will get more details on it, but, yeah, i think it's -- it looks weird to go back and restate things i'm sure they would rather not have to but they must have made some kind of progress or some new information from regulators made them adjust their thinking, not like $600 billion they wouldn't pay got to pay a lot more of this the next four, five quarters anyway. >> final question as well, people trying to get a sense of the read through from this, is it a citi specific issue or not? what issues are there out there outstanding citi specific as posed to ones that other banks all reported in a similar timeframe have similar business model, et cetera, might also then face an issue they have to restate? >> give the size of the kind of fraud issues this would be a really big number. guessing it is not tied to that i suspect something with lie bore and some of citi's peers are reporting this week or last week, they had the new information included in the larger litigation reserves potentially that we got out of usb and deutsche bank and some of the recent reporters. and the size of the litigation settlement we got out of jpmorgan, you know, earlier this quarter was a lot more than i thought it was going to be. maybe jpmorgan just made more progress with the regulators getting that final number sooner than citi. >> but citi did already take $1 billion during the quarter for legal issues. my read, jeff this appears to be $600 million that they hadn't accounted for that's on top of that $1 billion. while issues might have been disclosed previous lakers bank, kelly, does always have to, in those quarterly filing, they have to list what sort of regulatory risk is outstanding to whatever degree of transparency they choose to do that. we knew there were a lot of issues for citi. what does appear, they are getting costlier than maybe the street had expected. >> i'm also thinking of the issue with barclay's, it for the first time set aside reserves to cover the fx probes. jeff, a tough situation, don't want to speculate without information, a company comes out with an announcement like this, you sold out of the name. >> wait on specifics, jp morgue came out rk en. i don't know why we don't have any on this one. >> any thoughts, jeff? >> i think we will get specifics when the q comes out. not getting the answer now with the q, a better anticipate as to what it is and look, tend of the day 20 scent like 4% of annual earning, not that's insignificant but not like they are taking a devastating charge here. >> yeah. and just chuckling at that. again, more about the size and complexity of some of these banks than it does about what just happened. >> between friends. >> only devastating if it's an internal issue they can't address. >> even if it is by other regulators? >> internal controls in order, they will recover if they don't, it's going to be a long process and i think the stock could suffer. >> jeff, kayla, thank you very much. as long as we get more information out of citi, we will bring it to you, shares down less than 2% after hours after that restatement to third quarter earns and am ceo tim cook saying he is proud to be gay. why did he choose now to come out and what impact will it have on the business world? larry kudlow and barney frank weighing in, next. you can bring back a lot of things from a trip around the world. but you can't always bring back customer data. because many customers don't like it when their data moves around. can i go now? if you're going to do business globally, you need a cloud that can keep your data where it needs to be. today, there's a new way to work and it's made with ibm. on the business world? we begin with dominic chu, a quick roundup of a lot of afterhours action, dom. >> maimers now, starbucks shares moving lower down 5% in afterhours, comparable stores growths came below wall street expectations, revenues were a built lower than wall street estimates as well. starbucks shares down again by 5% in the afterhours. a different story for go pro. it beat on both the top and the would bottom lines. those shares up 8% in trading. linked in also beating for profits and sales as well. linked in shares up a percent in the after hours trade, end with shares of groupon which also posted better-than-expected third quarter results and groupon shares down by 1 and a third%. >> thank you, dom. he said it was no secret at apple and never hid his homosexuality. today, still, the acknowledgment by tim cook getting attention. josh lipton joins wuss timing and its impact. josh? >> well, kelly, today's announcement really was historic. tim cook is the first ceo of a fortune 500 company to say that's gay. in fact, tim cook in an op ed says he was lucky to work at a company like am, which he says is a place that embraces people's differences. apple executives applauded that decision as employees. i can tell you, cook was here today in cupertino at the company cafeteria chatting with employees. just another day here really at apple hq. arthur levinson, chairman of the board did have this to say, tim has our whole hearted support and admiration in making this courageous personal statement. on behalf of our board and our entire company, we are enkilled arably proud to have tim leading am, tim cook's statement not a huge surprise, this week, he gave a speech in which he said he felt compelled to speak out against inequality. dr. king once said our lives begin to end the day we become silent about the things that matter. there is lick little than anything matters more in our country than the basic tenets of equate and human rights. i have long promised myself to never be silent in my beliefs in regard to these ten et cetera. >> now in that op ed, tim cook talked about how he feels challenged by dr. king's words and he was willing to come out even if that meant sacrificing his privacy. he wrote, if hearing the ceo of apple is gay helps someone struggling to come to terms with who he or she is, it is worth the tradeoff. kelly, back to you. >> thank you, josh. joining us, larry kudlow and former congressman barney frank in 1987 revealed he was gay, becoming one of the first members of congress to ever do so. barney, what was your reaction to this announcement? >> i was very pleased a little surprised. i knew tim cook was gay. i hadn't realized it wasn't fully public. i honor him for doing it. in an ideal world, wouldn't have to make the announcement, makinged announcement is one of the things that will get us to that world. the fact is that there was still some people were dis, there are still parts of the country where gay and lesbian, bisexual and transgender people are second class steps legally and having a man who was one of the most admired in the country, who runs one of the best companies having him say oh, yeah, by the way, i'm gay, i think is one of the powerful blows against prejudice. >> larry, some say there shouldn't be a media focus on this, not even that important of a story, there an element of truth to that? >> no well, no. i agree with barney. this is major convenient. when mr. frank came out himself, i think it was very brave and i think what tim cook has done is very brave. i want to embrace a point i think barney inferred if not, put it on the table anyway. there are still laws on the books, federal laws and state laws, that discriminate until employment place against gays, be fired for your scratch i think that is absolutely wrong. i think those laws need to be changed. we have civil rights flaws this country. for some reason, sexual orientation is not part of that even cook's home state of alabama has such law and certainly the federal story. so, that stuff's got to be change and maybe mr. cook can help out on that >> or mr. frank. >> absolutely. and you know, there's an irony here. if you poll the american people and you say, should people be not hired, fired, not promoted because they are gay or lesbian, et cetera, the answer is overwhelmingly, 70, 80%. no but the frustrating thing for us is when we try to get a law passed, trying to do for some time, some people say, well, you are just trying to make some special dat category. by the way, we have excuse sitly said we are not going for affirmative action here. i think it is relevant in other contexts and the frustration is this, most americans believe we live in a fair country and they -- so strongly believe that is unfair to refuse to hire someone because she is a lesbian, they assume that's already the law and we have to do an educational a thing, i appreciate larry bringing that up. >> maybe is that the case. people assume it would be illegal do something like that >> assume it was in the civil rights legislation, but it wasn't. in fact, i assumed that incorrectly. i was one of the keynote speakers this year at the log cabin republicans annual dinner. that's the gay republicans. and as i've said and written many times, i'm a big tempt guy and i'm more than happy to be inside the same tent as the log cabin republicans who agree with me on lower taxes and limited government. and i think these anti-gay discrimination laws have just got to be changed. i mean, i think this is -- i like to see the republican party take the leadership on that, because gop needs to reach out and become more inclusive. >> you thank you would ever happen, larry? what would that take to make it happen? >> guys like me with a big mouth. i also think i know some senators, i know some house members, not gonna name names, i have actually talked to them about it and i think they are quite interested in that. who knows. look, what tim cook did, because of his prominent position, you know, the head of one of america's greatest companies, is a big impact. i think barney was right. i heard barney this morning on "squawk box." i think he is right. i think this is a major, massive, important event. >> barney frank, last word? >> i wish larry well. we have about trying to get the republicans to do it. i wish they would. unfortunately, this is the problem. a problem larry faces on some over the issues he would like to see his party move on, like immigration and some other areas, it is that this thing about parties dirgt their base. in the '80s a large part of the republican party base became religious conservatives and other very social conservatives and what's happened it this. the republican party is no longer actively gay bashing. they were in the '90s and thereafter. but there's an unfortunate situation. the republican party still, by platform and by the overwhelming majority of membership, opposes that kind of law. so i hope things will change. we have to deal with reality. today, whether you were to pass a law like the one larry and i were talking about is sadly one of the biggest differences between the parties, i say sadly, i would like that not to be part of the issue and i wish larry well in this and many other of his he have forths to improve his party. >> i keep working at t i will just say this, i know a lot of younger catholics, larry, catholics, conservative catholic, a lot of younger catholics are listening to the pope and preaching tolerance and -- >> i have urged people not to say anymore that someone is extreme by saying he is more catholic than the pope he says a lot of bishops think they are more catholic that the pope. >> into another -- >> not running for higher office. >> another con strollers area right now. thank you both. larry kudlow and barney frank this afternoon. appreciate it. she maybe one of the most controversial people in the country a week ago, only her friends, family and ebola patients in sierra leone no who she was. kaci hickox spark deed bait across america, ask former governor and health and human services secretary, mike levitt is right or if the maine authorities have it right, when we come back. gr that partners businesses with universities across the state. for better access to talent, cutting edge research, and state of the art facilities. and you pay no taxes for ten years. from biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo... startup-ny has new businesses popping up across the state. see how startup-ny can help your business grow at startup.ny.gov welcome back, kaci hickox, the nurse tenter is of the ebola quarantine dispute is keeping her word and defying an isolation order by maine. >> maine governor paula page saying today he will exercise the full extent of his authority allowable by law after the negotiations failed with nurse hickox about the terms of her quarantine. hickox defied maine officials this morning, leaving her house for a short bike ride and unclear exactly what the governor's actions will be but the dispute highlights the clash between scientific guidelines from the center for disease control and prevention and measures being taken in several states. the cdc and guidelines outlined on monday said determination should be made can as i by case based on each person's level of risk but several bodies are going beyond those recommendation. the pentagon said this week that troops returning from ebola missions will be subject to controlled monitoring for 21 days and the gar ran teen guide flames place for returning health care workers in several state, including new york and new jersey, have federal officials warping they could be deered from traveling to affected countries to fight the outbreak. >> we are concerned that health care workers who are donating their own time when they come back and have no scientific reason why they should be quarantined, that will be a disincentive for them to go. >> meanwhile, the outbreak in west africa continues with cases now at more than 13,700 and deaths at more than 4900. the world health organization says there may be a slowing in liberia, the hardest hit country, but we are far from out of the woods. kelly? >> meg, thank you there continue to be conflicting messages on how to deal with people exposed to ebola patients. on one end, the white house saying military personnel should be quarantined, civilians should not be o an state level, governors are taking action on their own requiring any citizen return from west africa, like c returning from west africa to be quarantined. to get incisight on who is righ michael leavitt. welcome back, governor, good to see you again. and who has the constitution on their side? >> in a democracy, there is often a collision between security and safety and freedom. in this case, security -- the freedom of one or two people as opposed to the security of many, and it's long established that we have laws and should have laws that allow for us to limit the freedom of select individuals who have the potential to in some way endanger the security or safety of others. so on principle, it's very clear to me that the state and the federal government need to have that capacity, and they need to enforce it when they feel it's appropriate. . now, in this specific, i think it also points out that this is, in fact, not just science, there's a bit of art here that is to say reasonable people can disagree. i don't know enough about the facts in maine to be able to make that call myself. but that's the reason i think that, that the doctor was pointing out there are differences in degrees and that people need to use good judgment in doing so. >> but listen, governor. it sounds like what you're saying is there's -- there's every right to quarantine these people. is that what i'm hearing? >> that is what i'm hearing. you're hearing. >> yeah. so that means what she's effectively doing she could and should be arrested for? >> well, look, this is a situation where local and state law enforcement need to use good judgment and moderation in the way they do it. if they believe she is, in fact, a -- a danger to the lives of people in maine, yes, they need to constrain her. but they ought to use good judgment in the way they do it. i think what we have here are people pushing on principle and reasonable minds, reasonable people need to deal with this. >> yeah. understood. we have to leave it right there. governor leavitt, thank you. thank you for being back here. tough issue. i'm going to say. we'll have the top stories and cnbc.com. when we come right back, stay tuned. 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(all) awesome! i love logistics. iit's a lot of haggling and itan stakes so long.ship. craig's experience is completely different than mine. yeah. yes, mike has used truecar. at truecar, we'll show you how much others paid for the car you want, and how much you should. because i used truecar there was no haggling about the price. they treated me so well, and it was just such a quick, easy experience. get your car, and get back to the life you love. welcome to the future of car-buying. big news this hour. citigroup adjusting third quarter financial results downward. that's right to the top of the most read on cnbc.com. what can you tell us? >> that basically blew every other story we had on the home page out of the water. and just everybody started jumping into the city story. started acquiring readers of the rate of about a few hundred a minute and it hasn't backed off on that. our number one story right now. a lot of people in the comments trying to figure out what happened. why is this coming now? so a lot of interest in the story, kelly. and the numbers haven't cooled down for it at all. it's still cooking. >> that's for sure, alan. we're looking for more details. thank you for now. everyone wants to live longer. but two years of additional life expectancy means you're going to need more for retirement. just how much? stay tuned. there's confidence... then there's trusting your vehicle maintenance to ford service confidence. our expertise, technology, and high quality parts means your peace of mind. it's no wonder last year we sold over three million tires. and during the big tire event, get up to $140 in mail-in rebates on four select tires. ♪ 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. 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 moment's 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. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. welcome back for some final thoughts with the panel. where do we begin, dr. jay? >> well, the storm clouds may have cleared for some of those internet and social names, go pro and linked in turning that around tomorrow. >> tomorrow? >> well, they turned it around tonight. that might turn it around for twitter and facebook. >> i want to hear if we're going to hear from more financials from what happened to citi. >> that's the one to watch out for. >> the market goes out like a bull, and we're going to have records in the dow and s&p tomorrow and october and a big note. >> what are you buying? >> industrials, financials, technology and i'm trying to get back to energy. kind of got out. >> brave man. yes, you did. thank you, everybody, for being here on such a newsie hour. and "fast money" begins with melissa lee and the gang. what's on tap? >> hey there, kelly, of course, we've been talking about citi. we're going to be trading the bank stocks especially given what happened with citi in the third quarter. what the heck happened with citi in the third quarter? we've also got an exclusive interview with the ceo of taser up around 8% on the day. on the back of strong earnings. a boost in demand from the ferguson episode over the summer for on camera officer devices. we're going to talk to the ceo. >> we're going to see more of those. strakt over to you guys. live from the nasdaq market site in new york city's time square, i'm melissa lee. our traders are tim seymour, dan nathan and steve graz grasso. first, bad news out of citigroup. shares falling after hours. the company announcing it is cutting its third quarter results citing rapidly evolving regulatory inquiries. we've got the latest. starbucks, linkedin, groupon, expedia, starbucks getting hit particularly hard. after missing on revenue. we'll bring you the latest on that call coming up is and go pro getting a pop on earnings. whether this is a bounce worth buying. let's start with news out of citigroup. kayla tausche has the details. >> yeah, just aer

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