seeing weakness with its supply chain orders, down 3%. moreover, the company makes a big bet with the release of its ipad pro with that apple pencil. we will tell you what to expect. >> you like that pencil, don't you? >> i think it could really be something. i do. >> i have my eye on that ipad pro, we will see. >> jpmorgan has the latest target of a massive hacking and fraud attack, u.s. prosecutors unveiling criminal charges just a couple of hours ago. we will bring you the latest developments on yet another corporate hacking going on. >> and t-mobile, mean while, saying customers can watch netflix and hulu without using data from their t-mobile plans. here to explain who will have to foot the bill no other than t-mobile ceo john ledger himself and a first on cnbc interview coming up. >> who is going to pay for that? let's start off with mcdonald's. courty reagan has sales on this announcement. moved the stock initially but it's come back again. >> mcdonald's wasted no time as they began the company's investor day highlighting the news out of that ongoing event. they are aiming to refranchise 4,000 restaurants. the company increasing it's g & a savings target to $500 million, mcdon has not decided to pursue a reit structure, mic don increasing its fourth quarter dividend by 5% and returning cash to shareholders upping that amount to $30 billion. the majority of the incremental $10 billion in cash return is being issued -- is done by issuing additional debt. mcdonald's had predicted that that would lower its credit rating by one notch at s&p and at moody's and instead s&p is lowering mcdonald's corporate credit rating by one watch from a minus to bbb plus. the move to all day breakfast is encouraging. u.s. president mike andres calls this the next growth platform. mcdonald's seeing 15% of food purchases outside of that breakfast day part including now a breakfast item. the rest of the day's average check is now higher among those purchases all day breakfast entrées and mcdonald's is changing the recipe for its egg muk mufb they did that early and said sales for that item up 21% in that month compared to previously. we also want to make sure that you tune into "squawk on the street" tomorrow for the interview with mcdonald's ceo steve easter brooke. again, the conversation with investors still going on actually for another two hours you might just see me again. >> and courtney, i wonder -- go ahead. >> you first. we are probably thinking the same thing. >> i was going to go there but i'm going back for a second to the real estate. >> to ask a serious question. okay. >> i'm just wondering if we really put this issue to bed, it didn't sound like a vehement kind of this company will never pursue this strategy so much as we've decided no to do this right now. >> after a robust discussion, clearly it was not a unanimous decision. >> actually, mcdonald's is pretty well into the details they laid out, all the assumptions that were looked at with the numbers, these are the things that we had to consider, they went through a number of slides, they talked about it in depth for six or seven straight minutes, said we talked about it with our advisors and decided it's not beneficial for shareholders right now and told us why it wasn't. does that mean that's a forever decision? maybe not it's hard to say what could be forever but they did want to hammer home the reasons why they decided to go through with this. i think to at least put it to rest for right now, because it's not something that this he apparently want to go back and look at after they've made their decision. >> i will ask the frivolous question. they're changing the recipe of the egg mcmuch, you have egg, you can muk muffin, what are you changing? >> i heard it was the butter. >> that's exactly it, kelly. there has been a butter change, i believe the meat was changed in some way and that happened in early september before they made the move to the all day breakfast. the early change when they saw that uptick in same store sales they are attributing it to the recipe change for the egg mcmuffin rather than the all day breakfast. >> my question was actual to be what breakfast item are people ordering with their lunch and dinner meals. is it the hash browns, is it pancakes? >> they called it -- they referred to them as entrées so i would assume actually that's more of the sandwiches and the hot cakes as opposed to something like hash brown. >> courtney, thank you so much. >> inquiring minds want to know. now to apple which is putting the biggest drag on the dow right now, onforth, what's going on? how bad is this slow down on the sales? >> i expect just as many questions on the iphone as the egg mcmuffin. apple is down 3%. the main drag is credit suisse report on iphones saying orders at suppliers are down and reading that through to mean demand is weak perhaps for the holiday quarter and quarter after. if this sounds familiar it is. tim cook warned months ago about trying to read too much into bits of data from the supply chain making the point that the supply chain is big and broad and reading into one or two pieces of data can be misleading but that hasn't stopped the street from trying. nervousness around demand for the iphone has been pretty big after at&t and verizon both said in the last quarter not to expect growth from smart phones in this holiday quarter because the u.s. market overall is maturing for those. important to remember, though, tim cook did say in apple's earnings call that iphone will grow in revenue and units in the holiday quarter, the question is what happened in the march quarter and thereafter. of course, apple sells more than iphones, macs have been doing well, but the bulk of revenue and an even bigger share of profits from that iphone. >> i was surprised that he talked about the pc being dead. i mean, first of all, that's not really up for debate anymore -- >> the pc is not dead. >> that's what i was going to say. there does seem to be -- in other words, the pc as the one answer to anybody's computing solution obviously we are not in those days anymore, but for the rest of us who have to do work every day, there's no better solution as far as i'm concerned. >> if you look at the ipads units of sales and even it's revenue it's been on a steep decline, steeper than the pc lately. there's less reason than we've seen in recent quarters, say the last couple years, to believe that the pc is dead. >> it could be the contrary. >> we were just looking at the ipad pro. is that going to save that category do you think? >> i will put it this way, this ipad pro costs significantly more than past ipads and it's a lot bigger. you are no the carrying this around in your purse or backpack. i don't know how many people have said i would get an ipad but i just wish it were bigger and more expensive. >> bill, what do you use at home? >> i am a pc. >> at home. tablet hasn't supplanted that yet. >> you. >> a little bit of both. >> for various reasons. the pc is the better way to go when you're writing, you know. >> and we're seeing some mojo in microsoft shares, that and the cloud. for now jon, thank you. apple is down 3% as this market prod bli speaking the dow trying to hold on to a 19 point gain, the s&p up doenl 2.5. >> we have ben willis, he is with us at post 9, marty partell and mississippi in chicago. ben, is the market finished filling sandbags getting ready for that first rate increase next month? >> no. i'm of the mindset and the school of thought that letting the fed natural lies rates is a positive for equities. the overriding effect on the stock markets and the bond markets are the central banks led by the fomc. we're seeing tremendous amount of flows into the etfs because of the indecision by the fed has led once again for the fund managers that are active managers having to come out of risk trade that's coming off the tape and the individual investors are flowing into funds, mostly the etfs, mostly healthcare, the financials and the like seems to be the ben factors of the flow, but the fact of the matter is rising interest rates are a function and an indication that the economy is doing fine, which is a reason why you should be buying individual stocks and for that matter those companies that are american centric, the particular has put pressure on some of the major indices but that being said we are not talking about a tightening to try to restrict run away inflation. i was here when paul volko raised the rates to record numbers, we are nowhere near that. the idea of letting rates normalize and come to a natural level i believe will release some of the animal in the market and force people to make a decision and to invest in the market rather than sit on the sideline on their hands. >> marky, this is a market where we are seeing the biggest names in the index really propelling all of the gains for the year. what strategy are you guys using? are you taking with what works, the apples, alphabets or amazons or at some of those names that should do better because they are not as exposed to world economic tensions? >> it's a feeling argument to go down on this capitalization side. i think the market by the fact it's narrow and the stocks are leading means it's a risk adverse market you are better off nft larger capitalization companies, in other words, the safer companies and that's what the market is saying to me right now. >> rick, a strong ten year auction today and then yields fell right after the results came out. what's going on there? i think yesterday's high water market for this mark was an intraday yield in ten. i think it's normal, comes back a bit. tomorrow, veterans day, the bond market is closed, equities have something to do with it. i enjoyed length to what ben willis said, it reminded me of something i did last night, i watched two crumby football teams, san diego and the bears, somebody has to win but it's a lot like said policy, this raising of interest rate isn't necessarily good reasons because the economy is heating up it's to correct something that's wrong, i think there's a big difference there. i do agree with ben in the grand scheme of things it's much better for the system, but part of that system are equity prices and i think that a lot of volatility is going to happen. ultimately it will be better. we won't misallocate capital, we will price capital much more appropriately, but in the near term, in this, you know, immediate gratification society we live in i think it's going to be a bumpy ride. >> what do you make, rick, of neil crashcari going to indianapolis fed. >> i don't know. there's one word that always comes up when somebody talks about these issues, goldman. i don't have feelings about it one way or another, i know he was appointed to tarp but tarp isn't something that i look at with fond memories, i guess no comment would suffice. >> last question, ben willis. what are you watching -- what's the next catalyst for this market? we're kind of drifting here. >> again, if we go back to the market of stocks we've seen incredible volatility individual names whether it was ibm yesterday or apple computer today. so those are the factors in that, but again, what we're seeing right now with flows, very significant flows into etfs, that would be healthcare, that would be the financials and the dividend plays. >> you guys like healthcare, marky? >> yes, we do. we think it's a long-term growth sector. >> it's one of the few industries or groups, if you will, that are on the plus side for the year still right now even though you see major volatility in the likes of valeant and mallinckrodt, the healthcare has still been the obamacare issue has made that entire group get paid which is why it's performed so well. >> it is more than just two stock even though getting all the attention right now. thank you all, folks, good to see you. we appreciate it. go bears. and we have about 45 minutes to go here. that was a football reference by the way. >> football, yeah. >> don't worry, everybody. the dow is up 23 points, the s&p is up only about 3 on the session, small caps slightly higher and the nasdaq is down by 12. >> good catch. up next, a dozen financial and publishing firms hacked. information on 100 million customers stolen. we will have details on criminal charges filed today in the largest cyber breach case ever. t-mobile ceo john ledger talking up his company's newer push to offer his customers streaming services like netflix and hbo without stocking their data plan. stay tuned. at ally bank no branches equals great rates. it's a fact. kind of like playing the boss equals the boss wins. wow! nobody's hurt, but there will you totalstill be pain.new car. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it. what are you supposed to do, drive three-quarters of a car? now if you had liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. new car replacement is just one of the features that come standard with a base liberty mutual policy. learn more by calling switch to liberty mutual and you can save up to $509. call for a free quote today. see car insurance in a whole new light. liberty mutual insurance. welcome back. the dow is just slightly higher right now, up 29 points, but way fair is sharply lower, down 12.6%, results for the online home goods retailer did beat street estimates with losses narrowing for a third consecutive quarter, but some short sellers question way fair's chances of ever breaking even as it competes with the likes of amazon and home depot. >> i thought they were another target of citron, didn't we talk about that earlier this year? jpmorgan chase has been hit by hammers in what's been called the biggest bank breach ever. eamon javers has more details now. >> it's not just jpmorgan we learned today the scale of this hacking enterprise alleged criminal enterprise that was unveiled today by u.s. authorities is simply breathtaking, it's global, they say that the three men who they indicted today were involved in a scam that included hacking of financial firms like jpmorgan, also the "wall street journal" as well as a whole array of other alleged crimes including processing credit card payments for illegal pharmaceutical sales, running illegal online casinos, hacking around the world into software companies and also running an improper bit coin exchange, all of it they say done based out of the united states, israel and russia, here is how u.s. attorney bararra explained it earlier today. >> the conduct alleged in this case showcases a brave new world of hacking for profit. it is no longer hacking merely for a quick payout, it is hacking in support of a diversified criminal conglomerate, it is hack to go locate victims, spy on the competition, to maximize profit. in short, it is hacking as a business model. >> and, guys, i want to bring you inside this indictment and give you one detail that shows what life was like for these alleged hackers inside this igs pra. here is a little exchange between two of the alleged co-conspirato co-conspirators, the first one says, look, is it really popular in america buying these stocks? the second one replies, it's like blinking freaking vodka in russia. obviously these guys knew their market here in the united states, they were involved in allegedly pushing out pump and dump style e-mails to millions of americans promoting various stocks, getting in and out of those stocks causing the volume of trading and prices in those stocks to fluctuate, all that now the united states has come to an end, at least in the case of this particular global conspiracy, guys. >> you know, preek makes it sounds like hacking is becoming institutionalized. they are developing an infrastructure that's going to be very difficult to compete with, right? >> the fascinating moment for me in this press conference is when he conceded that a lot of the really sophisticated global hacking attacks that we've seen just don't get prosecuted, the criminals aren't brought to justice. he said in this case they are and he hopes that this represents a turn around here of the u.s.'s ability to go after this around the world, but this involved, you know, a computer server in egypt, hacking into jpmorgan and there was a bank account in south america and in the united states, it is truly global and that makes it very difficult to prosecute. >> those of you who have seen the new james bond movie, "spectre," it's all about cyber security. >> is it really? >> yeah, it is. the head of a sinister organization that is looking to take over the world using cyber security breaches and things. >> not too much of a stretch. >> yeah. thanks, a mon. >> you bet. >>er see you later. >> that wasn't the best part of the movie, yet. 40 minutes left in the trading session, we are up 18 points on the dow right now, the s&p is up 2, nasdaq down 14 points right now. >> speaking of banks, up next the ceo of one of the largest banks in canada will be here, we will get his reaction to the international energy agency's prediction that oil prices could remain stuck between just $50 and $60 a barrel for some time. also, black rock president rob capito will speak to us about his market outlook for the rest of the year. stay tuned, more "closing bell" coming your way. when you're not confident your company's data is secure, the possibility of a breach can quickly become the only thing you think about. that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most. there's a difference when you trade with fidelity. one you won't find anywhere else. one-second trade execution. guaranteed. did you see it? in one second, he made a trade, we looked for the best price, and the trade went through. do the other guys guarantee that? didn't think so. open an account and find more of the expertise you need to be a better investor. valley the royal bank of canada is looking to grow its business. joining us now is dave mcchi who is president and ceo of rbc in town for the tech media and telecom conference. welcome to post 9. >> busy day. >> we will talk about technology in just a moment here. first, though, just given some of these moves with the federal reserve, looks like they are on the precipice of raising interest rates. what is that going to mean for your business especially with the citi acquisition and california and that part of the country. >> one of things that attracted us to cyst national is their leverage to higher rates in the u.s. market. we've been expecting it for some time to come, i was wrong in september and october, looks more likely in december but we are still not sure. you look at the balance sheet and all bank balance sheets the duration of assets is an important indicator of your leverage to higher rates. citi national certainly has shorter duration of assets, they reprice quicker and it creates more yield and more profit. >> there seems to be some dispersion, citi national that might be the case, other only nl banks it's unclear as to whether they're equally poised to benefit. why might they not fully participate in this higher rate, better economic environment regime. >> certainly with the regulatory change we've seen over the last two years not all deposits are created equally. core checking deposits which are sticky, which you can lend into longer term assets have great value, shorter term deposits don't have that same stickiness and create liquidity challenges and aren't as valuable to banks. >> checking deposits aren't adds valuable. >> checking deposits are more valuable for the fees. for the fees because they're sticky and you can lend them into longer term assets. shorter term deposits aren't as valuable, particularly six months or less because it's a liquidity challenge on your balance sheet and you can't put them into productive assets. the other challenge is originating assets. many banks are successful, particularly regional banks in originating deposits to their customer base but lending assets largely into the capital market, national franchises and credit cards and auto lending are key players so it's difficult to originate an asset against that deposit making deposits somewhat less attractive in an environment where you can't originate the asset. >> oil prices, this forecast that we could be in this range for a while, $50 to $60 maybe even lower down the road, but at least for now the keystone pipeline, what does that do to your economy in canada and to your company specifically? >> certainly you've seen the canadian economy is challenged as oil companies adjust to a lower price which probably a range bound for reasons of supply and demand issues in the global marketplace, you've seen the canadian energy producers reduce dividends, we've seen them reduce cap ex significantly, that's had a big impact on our economy. the positives, certainly the nonenergy portion of the economy which is 80% of the canadian gdp is performing twun 2 and 2.5% and will continue to grow as the lower canadian dollar spurs exports into the u.s. market, into the european unions and other markets. there's an energy story and nonenergy story. >> do you think keystone is dead forever? >> under democratic refresh seem, absolutely. potentially revisited under a different republican refresh seem. that is a long journey in the united states. >> meantime, we have chase pay launching as what seems like a bit of a competitor to apple pay. apple pay hasn't seemed to get quite as much traction as some analysts were expecting. where do you fall when it comes to mobile payments and how important is it for rbc to the to be in the middle of this next move. >> absolutely critical. we are in the money moving business. people mover money p to p, b to p and that franchise is incredibly important to any institution. there's three things that all competitors are trying to do and we're trying to make it frictionless and easy for e-commerce to reside both in the digital and physical world. the easier you make it the more you can respond to impulsive buying and immediate gratification of consumers to make it easy with a thumb print or tap of a phone, that's going to spur commerce and e kmers in the individual channel. >> can you remain agnostic on the different pay services. >> we can. we're trying to building a ubiquitous model across issuers, so it's critical that you have an open wall because they don't want to carry 15 different wallets. and information is the other critical driver of this. stay relevant to your customer, to understand your customer you have to see how they're interfacing with merchants, interfaces on the internet and being digitally relevant is an important way to do it. >> they are not walking into the branches anymore. >> traffic is down sequentially year over year. >> mobile watches are up. yeah. smart watches. dave, thank you so much. >> dave mckay of rbc. time for a cnbc news update. let's get over to sue herrera. >> the senate passing the revised national defense authorization act which will ban leaving guantanamo detainees to the u.s., although president obama is not in favor of the $607 billion defense policy bill, the exhaust says he is likely to sign that measure. secretary of state john kerry will deliver a speech on u.s. policy towards syria this week, the state department says that speech will take place thursday and it comes as the u.s., russia and others try to find a solution to the syrian conflict. starbucks is pushing back against accusations from donald trump and others that its minimalist holiday cup design is a slap at christmas. in a statement touting it's 2015 christmas coffee it said it's introducing the exclusive blend on behalf of its 300,000 employees from, quote, diverse ethnic back grounds. talk about a close call, a pro skier surviving a death defying fall while film in alaska for the movie paradise late. ben mcintosh was making his way down the mountain when he fell into a 5 foot french, cart wheeled, about 1,600 feet down the mountain, he pulled his air bag. there he goes, he pulled his air bag and that helped cushion his fall a little bit. of course, being the expert cameraman that he was, it got caught on camera, too. >> wow. >> i know. it's amazing, right, that he survived. but he did. >> who can i thinkly steep. >> wow. >> it really is. >> so when you go see that movie, know what went into it. >> yes. >> thank you. 30 minutes to go here. things could get interesting as we look at s&p 500 still just holding on to a gain of a couple points. as uks see the dow up 18 points. interestingly ge is as much the story today as the names we are more accustomed to talking about, the apples of the world, the big tech companies but ge holding on to the $30 mark for the first time in, what, seven years? >> yes. seven years three months and -- yeah, not that i'm counting or anything. >> the nasdaq still down by a quarter of a percent. >> up next, of course, anything could happen in the final half hour of the session, a leading trading on the floor will tell us what he's watching. wlak rock president rob caputo will joining us. he will tell you what that is coming up. welcome back. about 25 minutes to go here. so far the s&p holding on to a 2 point gain. >> i think we will probably trade right around here but i'm not looking at the ep so. one of the reasons that the s&p is kind of laying here is because of the heavy tech influence inside of that. apple is weighing on that, you know, apple if you look at some of the etfs that are in the tech area apple is the overwhelming decided weighty factor inside of this. what i'm looking at is the nasdaq and russell. the russell is broken back the low 2011 trend line which is a little troubling and the nasdaq composite is trading below that 5133 level that we actually identified last week. >> what is going on with the nasdaq? is it an apple effect? is it healthcare? >> i think it's more of apple and more technology. what we've seen in the trade overall is certainly a more defensive trade, you've seen it rotate out of the growth sectors, the sectors that are up are right now are utilities and some of the other healthcare a little bit here. that's what i think is going on. again, you have to look at the technical picture underneath that and 5133 on nasdaq is very important. >> we were just finding our footing, we had reached some technical levels to the upside and gotten momentum here. are you saying we give that back now? >> it all depends on what happens with the russell and nasdaq. the thing that's rushing over the market is china, we can't deny that. we have had -- >> more so than the fed. >> that's right. we had four straight down days, hopefully we can close up on the s&p but there's some near term weakness in here as we move through some of these seasonal patterns. so, again, watch the russell and the nasdaq, those are the important ones. >> thank you, keith. let's talk about these railroads. canadian pacific rail waist exploring a possible takeover of norfolk southern, norfolk southern was up sharply yesterday on that talk, down today, though. more now on what a potential deal could mean for the rails. let's bring in mark levin from bb&t capital. you think it would make sense but do the companies think it would make sense? there's clear there's overcapacity and they need to merge, you've got reluctant partners out there right now. why? >> that's a great point. there is a reluctancy. if you listen to quarterly conference calls over the course of the last year it was apparent there was only one ceo at the time who was interested in consolidati consolidation, that's hunter harrison at cp. the time he looked at csx, now bloomberg reporting that he is looking again at norfolk southern. i think there is a lot of concern about sort of opening up a pretty powerful black box and by that i mean inviting all sorts of regulatory issues, shipper concerns, potential open access. there's all sorts of different potential issues that could come out of this. >> mark, today the journal points out how eric son and cisco have agreed to effectively a partnership saying they just don't know about getting these mega deals done anymore and whether they're worth the money. is there anything like that that you could see happening in the rail space? >> well, i think the biggest issue for getting a rail deal done would be from a regulatory perspective. there have been a number of rail mergers over the last 20 years that at least in the first year or two and sometimes longer had a lot of service disruptions associated with them. angry shippers, people who are very concerned about what this could mean for price. i think those memories linger. so, again, i think what the railroads are seeing right now is it's very, very challenging to grow the top line in this environment. you're talking about a ceo hunter harrison at canadian pacific who has done an unbelievable job improving the efficiency of the rail network and i think he sees a lot of opportunity, especially in an environment like this. >> very quickly, mark, if there are no mergers, what happens to these guys, especially if commodity prices condition lower and you just don't see the kind of traffic that you get when prices are going up? >> well, it's tough, it's certainly a tough environment because railroads find themselves much more levered to commodities than they ever have been. i think in the case of cp there's still a lot of set of si to be there. i still see double digit earnings growth even on very low volumes. in the case of norfolk southern it's a little more challenging because coal is in secular decline, it was 30% of revenues, now 15% of revenues it could be an anchor on earnings growth for the next couple of years. >> mark levin, good to see you. thank you. >> take care. we have 20 minutes left in the trading session here, the dow up 17 points, kind of holding steady here as we head toward the close. >> all right. up next, the always colorful ceo of t-mobile john ledger is promising to rock the mobile and streaming worlds. he will tell us just how he is going to do that on a first on cnbc interview next. only two days left to bid on the visit to our -- with us here at the closing bell set of the new york stock exchange, drinks with kelly and me, we have received wonderful feedback, generous bids on this for the wonderful lulu and leo fund but a couple days left. >> and there might be some sweeteners to add to the pot. >> we will be coy about that. >> and we will be right back. checki out your y f medicare options until you're sixty-five, but now is a good time to get the ball rolling. keep in mind, medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help pay some of what medicare doesn't, saving you in out-of-pocket medical costs. you've learned that taking informed steps along the way really makes a difference later. that's what it means to go long™. call now and request this free decision guide. it's full of information on medicare and the range of aarp medicare supplement plans to choose from based on your needs and budget. all plans like these let you choose any doctor or hospital that accepts medicare patients, and there are no network restrictions. unitedhealthcare insurance company has over thirty years experience and the commitment to roll along with you, keeping you on course. so call now and discover how an aarp medicare supplement plan could go long™ for you. these are the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. remember, medicare doesn't cover everything. the rest is up to you. call now, request your free decision guide and start gathering the information you need to help you keep rolling with confidence. go long™. ♪ about 18 minutes left. joining us now to talk about the markets greg serean from high tower. what are you watching as we head toward the end of the year, what is typically a pretty strong time for the markets? >> we're watching the acceleration the last 12 or 13 weeks, really it's been unprecedented advance from the august lows. i think it's a wake-up call for investors to think about what's going to happen in 2016 and beyond. they're getting more defensive in their portfolio, a run up in the growth stocks, i think the market will be less rewarding in the next two or three years. >> what do you make of the fact that such a narrow band of names are responsible for the gains that we're seeing in the s&p 500 and it's a lot of the biggest names in the index. >> 45 stocks or something. >> i think the biggest ten sectors are the whole reason why -- the biggest ten names in the index, i'm sorry, this one are the whole reason the index -- >> i agree. i think that's a concern from the valuation perspective, you see such a narrow list as opposed to broader leadership. that's a sign to get more defensive in terms of repositioning assets in diversified asset classes. >> meaning what? consumer, what, healthcare, utilities? what's your defensive play. >> i think focusing on high can i have depend paying investments, high dividend paying stocks but also investors should be thinking about making their fixed income nor cautious. look at what the ten year has done, it's gone from 2 to 2.3%. investors should assess their exposure to bond funds and getting into short term corporates. >> you could easily see a world where people start to see losses on the bond and they say i better get into stocks but some of the areas that you're talking about, the good give dent pairs, utilities are trading at a pretty nice multiple because of what this he have to offer. what happens if people look to pile in there and aren't comfortable with the valuation. >> that is a concern. look at some of the energies and some of the oil names that are out of favor right now, i think those represent -- you could see some downward pressure on those, people that sell to offset some of the gains in their growth stocks as a way to get are id of that capital gain before 1231. >> do you look overseas at all. >> we like europe. the sign says you can't fight the fed, i thor same with the ecb. look at what consumer sentiment numbers are happening in the europe, the euro stock 600 up 10% in year. >> what's the currency done? are you taking the euro out of it because a lot of people think look at where the euro is now, 107 or something, if that keeps moving lower does that cut into your gains? >> i think that could cut into concerns on u.s. corporate earnings as the particular continues to strengthen overseas and the euro is affected, but i think that the pure growth potential of -- look, our markets got all that capital pumped into them from 2009 to 2014, it drove up the s&p 500. i think the same thing like it or not for at least the short term is going to happen with the european indexes as well. >> i was just going to say japan, china, those are also popular candidates lately. >> come back mode, do you go to asia anywhere? >> i think it might be a little early at this point to look at some of the emerging markets, bill, but i think that that will -- that will be a theme. from a valuation perspective those markets are simply much cheaper than our own and if china's biggest problem is they've going from a 9% growth rate to a 7 that's still a solid paced growth. >> looking beyond by the way to emerging markets. what do you do with those? would you recommend people pretty much just stay away or is it worth it given the sell off we've seen? >> given the recent depression in the commodity markets and ripple effect to those equity markets its a little premature to jump into those emerging markets. you want to watch those carefully. look what they did in october, they were up 7, 8% in october along. when they love they move quickly and it's to time the perfect time to get back into them. >> do you like what the ecb is doing? what's going to happen with the fed? what's your guest on when they begin -- do you go defensive because the fed is going to start raising rates or other reasons? >> i think you go defensive just because of what the market has done in the last five years. regardless -- talking -- >> mainly because of fed policy. >> fed poll ri, right. it's been easy money and the easy money is no longer here. look at how earnings have been measured so far this year. earnings growth is down from 2014 and i think that's a concerning sign. the fed is likely going to raise, whether december, january, february, i don't know, but they are truly ready to raise rates. >> thank you, greg, for joining us. appreciate it. greg cerian high tower manager. 13 minutes to go here into the close. keeping an eye on markets, the small gains of the dow and s&p and nasdaq in negative territory. >> i'm looking for art cashin but i don't see him wandering around. up next john legere will tell us how much it's going to cost to allow customers to stream video without using their data plans. this is a game changer. we'll talk about it coming up. 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. here at td ameritrade, they work wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. all right. here we go. t-mobile unveiling its latest uncarrier move, they're calling it the bing on plan. it allows t-mobile users to stream video of hbo, hulu, netflix, other services without accounting against their data plan. >> joining us on a first on cnbc interview is t-mobile ceo john legere. >> good to see you, john. >> hey, great to be here. >> rocking the shades. >> first like walked off the stage. >> and we are also seeing the tweets and the coverage beginning, john, as to what you guys have to offer. there were rumors you might offer something like a netflix to subscribers, we see what you're doing with a suite of video products, does that mean that the companies that you're announcing with here are the ones who are going to foot the bill for all this data? >> no, you know, kelly, i declared it data day, so the first thing we did is we doubled the size of the data bucket of all of our simple choice plans, family match where families can choose incremental data and get twice at much at no extra cost and binge on, hulu, net flex, view due, espn, hbo, et cetera, that you're able to take -- we've optimized -- we're optimizing the screen or what a video is required on a mobile device and with binge on you will be able to stream for free. secondly, for anything else you stream even outside of these 24 you will be able to stream three times as much data, no overajs and none of the other shenanigans the big guys are pulling. >> who is going to pay for that, john? that's the question. you are clearly going aftermarket share but somebody has got to foot the bill for those data minutes that are not going to be counted against your t-mobile plan. who is doing that? >> yeah, bill, if you remember -- you are not quite my age group but if you remember tastes good and less filling. what we were able to do is, you know, if you think about the high content media rich data that is created from movies and high resolution screens, your mobile device doesn't require that. so we've optimized what a mobile device needs to watch dvd quality video. we're able to send you dvd quality but also optimize your data. so i will tell you the interesting thing is the providers aren't paying, the customer is not paying but because of the utilization of the network this is actually very, very good for shareholders and for the value of the company. >> let me read here, john, you say that powered by new technology built into t-mobile's network binge on, quote, optimizes video for mobile screens, minimizing data consumption while still delivering dvd or better quality. so what kind of network tweaks are made here behind the scenes? >> well, think about it. now, kelly, you happen to be a millennial and millennials, 57% of what they watch they watch on mobile devices and they also tend to watch three or four shows at a time 84% of the time. now, what you're able to do is you're able to send it at an optimized rate that is dvd quality on this device. so -- by the way, the best part is if you want to mirror it on a bigger device and you need a higher speed you can turn this on and off anytime you want. it's the best of both worlds, binge on three times as much data and the 24 providers stream free. if you want a higher resolution for mirror owing you just turn the switch and turn it off. best of all customer choice. >> let me ask it this way -- by the way, i do remember less filling and tastes great. how are you going to make money on this deal, then? how will you make money? >> okay. first of all, we'll make money from tremendous customer acquisition and from much better utilization of our network and the data buckets of what our customers use. so i think, bill, what you're going to see is this is not going to be a massive increase in the utilization of our network, but over time as the video streams demand more and more use of the network this is highly efficient. by the way, i would say as i will start talking with investors about this is very profitable for t-mobile and i will explain that to investors in short fashion. >> are there any net neutrality concerns here? it sounds like it's only these named networks, 24 total services? >> yeah, and this binge on is available through any legal provider who meets the technical requirements. similar to music freedom there is no net neutrality issues. we are not charging providers, we are not slowing things down and the total choice to use this or not is in the consumer's hand, they can toggle it on or off. we think that similar to music freedom this is highly positive from a net neutrality standpoint. >> you have one believer here. john legere the ceo of t-mobile joining us right after making this announcement a few hours ago. thank you very much. >> i can rock them just like he can. >> thank you very much, guys. >> you got it, john. we're coming back for the closing countdown in just a moment here. when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. that's where at&t can help. at&t has the tools and the network you need, to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most. a minute left, i have dom chu here, pressing the flesh. here is the ten year yield today, busy day, they had the ten year note auction went very well, yields came down, especially after the auction results came out and then we are at 233 there. quickly a couple of stocks very much in everybody's radar because of the possibility of takeovers in their respective areas, norfolk southern and apache sharply higher yesterday but today sharply lower. >> i think a lot of traders are watching the ten year. we rarely talk about it, it's a big deal. so we have the highest levels of the year, we will wait and see if that has that ripple effect in those interest rate sensitive stocks. >> come back when you can stay longer. we're going out with a gain of 21 points, kind kind of a quiet bay, our friends at cbs bringing the closing bell at the new york stock exchange. stay tuned for the second hour of the "closing bell," everybody. see you tomorrow. thank you, bill. welcome to the "closing bell," everybody, i'm kelly evans. dow going out with a gain of 31 points today, take a look at the major indexes settling, the s&p adding only about 3.5, still below 2100, the nasdaq was the underperformer today down a quarter of 1% or 12 points, on the dow by the way even though it finished positive apple down better than 3%. we will have more on all that in just a moment. joining today's panel we have our very own mike santoli and kayla tausche and "fast money" trader guy adami. welcome one and all. mike, what do you make of this market? >> it's been this tame gentle fall back to the last five days or so. with he did finish slightly positive. if we were doing like we were in the midafternoon it would have been one of the smallest five day losing streaks ever. it is a working off this overbought condition. i think flat is really the rule -- each if you stretch back, 2081 on the s&p today, that's where we closed christmas eve last year. >> sounds like the ten year where rick santelli was saying we were trading at the level we closed at last year for so much of this year. we finally, kayla, have gotten a little break out there moving higher. >> i know a lot of people are paying attention to thursday, we get comments from janet yellen, also from stand fisher on thursday. it's the retail sales number on friday, too, that i think a lot of data hunters are looking for because that's going to determine how healthy is the consumer, are they actually spending money, what does it set us up for in terms of the holiday season if you're watching those stocks. >> on that point, guy, we're getting earnings from the big retailers, it's hard, this is why i guess we need friday's report. a lot of these names, how indicative of they of the health of the u.s. consumer? >> i think they're somewhat indicative. you look at some of these names, macy's hasn't been able to get out of its way for quite some time, nordstrom had a good report a couple months ago but gave up the ghost. never underestimate the u.s. consumer's want to spend because they will spend whether they have the capacity to do so or not. i agree, though, i think the big numbers -- just remember that jobs report that 275 that we got all it really did was get up to a three-month average of about 180. people believe the fed is back on the table in december, a couple bad data points and we will have a much different conversation in the next few weeks. >> the fund lines we look for in the retail sales report is the nonstore retailers, you can extrapolate what about amazon do, even alibaba they're beginning their singles day, this is where the attention is. >> it's important to note, though, they are not exactly selling to u.s. consumers through black friday. there are some u.s. brands that will be selling their products to the chinese consumer on the various alibaba properties, but of course the numbers are staggering. alibaba and the chinese is expected to deliver more packages in this one day alone than the entire holiday season in the u.s. >> i'd buy that the number matters if you're looking at retail but it's not going to be a swing factor for the fed. retail sales is not really the battle front here in terms of the fed. >> is there a battle front anymore? >> i think you have to have jobs fall off the cliff in the first week of december in that report or you would have to have some kind of deflationary number come out somewhere else. >> in the meantime personnel shifts going on as well. minneapolis fed president who had announced he was retiring is going to be voting apparently in the final meeting. >> he wasn't a voter anyway but he wasn't even going to attend now. >> not going to attend. he is have been who has been -- he had a bit of a change of heart, you know, philosophically over the years when he came out and said i feel strongly inflation is not where it needs to be, the fed needs to be more dovish, he had leaving and replaced by neil cashcari. he won't be voting until 2017. meantime kayla i was going to ask you about what's happening with the valuation of snap chat and the private mark, we got news on that today, square that ipo might not be equivalent to what they're able to raise in private markets what does that tell you? >> i think there's a little bit of heightened expectations maybe for some of these companies, very young founders, not talking about square obviously, justice department is a serial entrepreneur and has a reputation to that effect, but with drop box, snap chat, both of those companies have seen their valuation market to market by fidelity drop off, also seen it's market drop. what i'm hearing is it's revenue issues that maybe they set revenue targets that they weren't able to fit and some of these fund managers are saying, look, if i don't know what you're going to be making in sales for the next three-quarters, four quarters and it's not predictable, knots sustainable, then perhaps that valuation has to come in. >> and this comes, guy, at a time when the market to date -- we've been talking about this a little bit but a nice remainder today courtesy of "usa today" it's the biggest names in the s&p 500 that are really responsible for us being in the green this year, you know, that says a lot i guess about the breadth of this rally. >> it does say a lot. the good news is you have some names -- you mentioned about 20 minutes ago general electric trading with a 30 handle for the first time i think in seven years, bill can probably speak to exactly how many days it's been, but i think that's encouraging, general electric is getting back to where general electric should have been ten years ago if you overlay ge and a honeywell chart you will see honeywell has been eating their lunch for the last decade. obviously amazon is a great story. there's very great individual stories out there but you're not getting the participation of everything that i believe that you need. that being said, you look at crude oil, what can derail this fed? mike talked about deflationary pressures, it feels as if crude is making that next leg lower. today was a big of a slightly higher but it feels it can't get out of its way. you can talk about transitory crude oil they want, but unless you can define how long transitory is there's nothing transitory about it. >> mike. >> i definitely agree with that. i still don't think that headline inflation is going to be the thing. at this point six weeks before we're going to get a decision it's going to matter for the fed. i do think the character of this market with these huge stocks performing and nobody else, look, a year ago we expected 10% -- 10% better earnings growth for the market, we got better news up 10%. it's a growth meter the individual names that had some fundamental improvement that have carried the market. >> although, mike, i'm wondering when we talk about the merge market evidence low energy prices for so long where inflation is concerned as far as the year over year number goes we're getting to the point where year offer year we aren't maybe seeing a tiny bit of inflation. >> as a matter of fact, we're also going to start with the big dollar rally, it's related. you get into the first quarter and all of a sudden those effects don't look very dramatic anymore. let's shift to another gramt tick story playing out. we will let you go, guy, we appreciate it. the "fast money" crew talking to one market technician that has a chart that could every apple investor. the ipad pro officially launching tomorrow and ceo tim cook tell british newspaper the telegraph the ipad pro is a replacement for a laptop or desktop for many people. chris, investors not that impressed today? >> we haven't seen the ipad pro come out just yet, comes out tomorrow. i think this is going to be another home run for m a. they've signed deals with ibm, cisco to get into the enterprise, they have a $25 billion enterprise business. considering that cook is super bullish on the ipad pro, he came out and said he doesn't really care whether you buy a mac or ipad pro. >> does he have to be because people are honing in on iphone sales and what they're going to be able to put up going into the holiday quarter. >> apple has been in the iphone business for the past few years now. 2/3 of the business comes from the iphone and he needs another growth driver. >> the stock is weak on talk about the supply chain weakness, people doing channel checks, saying maybe things don't look great, can ipad pro move the needle. >> they have a $25 billion enterprise, 200 million pc's sold in the enterprise. if they can have a market share there that's a huge number they don't already have. >> a huge number presumably at larger volume. it's not like that's where the growth and profits are. >> you're right. it may take a little hit on growth margins, the ipad pro isn't that much different than previous ipads i'm sure that cook and his supply chain experts can figure out how to get growth margins. >> can this hold a candle to what they've done in the mac line. it almost seems to cannibalize what the ipad was supposed to do for the enterprise. why not just get the mac instead of an ipad pro? >> because you can't take a mac out, you know, versus an ipad pro, you can go out in the marketplace or go out traveling with it, but it's a lot easier to carry a 12 inch ipad pro than macbook pro and everything that has to support it. >> i did the opposite. instead of getting this last christmas i, i guess, needed something mobile i did the air, the macbook air. you know, price wise, you know, ease of use wise and it's got the keyboard, you know, there is a point to be made that as jon fortt was saying earlier, the ipad pro is a larger, heavier, more expensive tablet. why do i want that again? >> it's not catered towards the consumer it's catered towards the enterprise. enterprises are traditionally not apple mac centric based soar if he can get some of that market share that's really good for apple and their shareholders. >> a lot of people have been drawing comparisons between that and microsoft surface pro. >> microsoft doesn't reveal numbers for the surface, it's anybody's guess how big it is. i've seen some product reviews, i like it, i don't think it's going to replace the pc within the next two or three years. >> i had he a be interested to here apple give us a little bit more of a broad view case for the ipad. last week we heard ibm ceo talk about how the apple ibm partnership is working in australia for coca-cola, they have an app that helps them manage their vending machines but it seems to be only in these niche instances where these enterprise partnerships are working in creating apps for the ipad that make it that useful for the two, force. >> that's because the ipad really hasn't been, you know, business centric, it hasn't been business friendly, now it's basically like a computer, it has the apple pencil or stylus whatever you want to call it, comes with a keyboard. this is catered towards the enterprise. they're really marketing it towards the enterprise versus the consumer. >> we have to go. are you going to use one at work, chris? >> we'll see when it comes out. >> you are a pc guy, aren't you? >> yeah, we have pcs at the office. >> you let us know when that changes. thank you so much, chris, for joining us. mcdonald's investors have been loving the stock, it it's 20% this year but will news of the investor day today keep the good times rolling? we will talk about that next. later black rock president rob kapito. you're watching cnbc first in business worldwide. >> wrik don say it will not spin off its real estate assets. shares more or less unchanged on that. let's bring in jonathan maze, he is finance editor at nations editors news and steve schaeffer. jonathan, right move for them not to go the real estate pin off route? >> i think that depends on -- you know, the real estate issue is a really complicated matter for mcdonald's. with the irs, you know, with the irs really questioning these things right now, i think it was too much of a risk for them at this particular point. >> that's true, they have -- the irs has indicated a little skepticism about pursuing these deals. steve, we have a dividend increase. a lot of moves on the financial engineering, if you will, side of things, but frankly mean while it's a lot of the new breakfast items and the menu that's getting the attention here. are both of these things going to increase shareholders' desire to invest with this company? >> well, i certainly think this was about -- obviously they are not doing the -- it's about buy backs and breakfast. they're adding $10 billion to the capital return planned and s&p already said they are going to downgrade them, moody's made noise earlier in the year. when you look at the breakfast side of things, we haven't seen any numbers on that yet. steve easter brooke the ceo said things are going slightly better than they expected but if someone comes in at dinnertime and orders an egg mcmuffin instead of a big mac that's a smaller ticket order. let's see what the margins looks like that when they report in january. >> the stock is at an all time high, this is a company that's been public for 50 years, clearly management was in a way playing from a position of strength in answering these people who said they wanted a radical restructuring. i guess the question is just exactly how much improvement in the fundamental story is already priced in at these levels. >> i think you're absolutely right on that, but they also now keep that rechip in their pocket if they have to play it if the fundamentals don't turn in the direction they want them to. the last sales numbers we saw from them that they hinted at were pretty good. they're not reporting on a monthly basis anymore. let's see what the numbers look like and now they've kept that read option alive. another point on the reads, if we get a fed rate hike cycle the sentiment around yield play like reads could change. these things don't happen overnight even if they had announced it today. >> once you stop focusing on the financial engineering you have to think about the fundamentals and the restaurant experience. of course, it's difficult jonathan when you have a majority franchise owned and operated system. i'm wondering how many levers do you think meck don has now now that it's enacted the all day business to refresh the look, the cleanliness, the design of some of these stores, how easy will it be for easter brooke from here? >> well, the refranchising more stores, that's a pretty -- that was a quick lever for them to pull, they could probably pull -- they could probably refranchise the rest and go 100% franchise, you know, but for the most part really the real estate is the last one after that one. they don't really have a whole lot more to do. >> do you think, jonathan, before i let you go that there's been a bit of a momentum shift from fast casual over many recent years back towards the fast food space? >> i mean, no, not -- i mean, to a certain extent, yeah. i think for the most part they're almost different customers, fast casual space has been taking more business away from casual dining than it's been taking away from quick service restaurants. quick service is -- you know, mostly its own set of customers that are focused on convenience and price than -- >> yeah, mcdonald's showing here that it's not going to take anything like down, punching back, if you will. jonathan and steve, thank you both. >> thank you for having us. >> you can of catch mcdonald's ceo steve oeser book on "squawk on the street" tomorrow. >> does your personal financial adviser have a criminal record? you may be shocked by the results. first we will take the pulse of investors when we speak to black box president rob kapito. find out where he thinks this market is heading when we come back. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. 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[ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp, an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide. and learn more about the kinds of plans that will be here for you now - and down the road. i have a lifetime of experience. so i know how important that is. welcome back. lackluster stock market returns and fears of a fed rate hike may be forcing wealthy americans to seek alternative investments. robert frank has the details. >> the world's rich continuing to pour money into collectibles. chrissees last night sold the second most expensive painting ever sent at auction. the reclining nude sold for $170.4 million dollar. that puts it behind a record holder which was picasso that went just under $180 million in may. after nine minutes of bidding it was sold to chinese billionaire lui chen who plans to put it in his private museum. he started out as a taxi driver now buying $170 million paintings. also selling last night was roy lick ten stein's nurse, meantime chrissees selling some serious rocks at its imported gem at the same time. this 16 carat pink diamond just sold in the last five minutes for $28.7 million making it one of the ten most expensive diamonds ever sold. we still have two more days of big sales in new york as part of a $2 billion fall auction season. so far chinese buyers have been strong, lots of eyes on this andy warhol portrait of mall which will be sold at soth a bees, estimated price more than $40 million. >> our robert frank. a new survey by black rock showing americans holding on generally to a lot more cash. 65% of their portfolios in fact, should they be putting that to work somewhere else like diamonds and artwork. in this chris christie exclusive we are joined by black rock president rob kapito. i'm guessing you you're recommending something more vanilla stocks and bonds. >> after so he go that i'm recommending being a taxi driver in china so i can buy good artwork. >> 65% in cash, though, that's a huge number. >> this is a big issue but under the topic of retirement and what we found is that we did a survey, 30,000 people around the globe and we found that people know that they need to save for retirement and they're starting to do that, but this they're not investing and you can't invest for the future in the future. 65% of the clients' portfolios today are in cash and that is going to harm them because we all know we are going to be living longer. instead of spending 10 or 12 years in retirement you may spend 15 to 25 years in retirement and people are not going to have enough money if they don't start investing that money. so you can't invest for the future in the future. we tell people it's not timing the market, it's time in the market. so what we've been trying to do is create awareness and using this survey to create awareness. a couple really fun things. one is that people are more optimistic about their financial future. even though they are not doing anything about it. we found there is a difference between who is investing and who is not investing. millennials are investing. >> really? >> that's because they didn't go through the financial crisis with any assets, a house or a lot of assets in the bank. >> we're told sometimes student debt keeps them out of the market. >> i don't know. the millennials that are working are actually investing, spend ago i lot of time on their computers looking at financial information but the baby boomers, generation x seniors are not saving. too many people are relying upon social security, which is really supposed to be supplementing their income. >> right. >> we actually know how much with this survey. the general population thinks they are going to need $45,000 a year in retirement. what they currently have saved will get them around $9,000. so there's a gap of $36,000 that people have to make up. you cannot make that up in cash. >> right. >> if you don't think this is serious, the younger generation is going to find out that their parents are going to have to move back into them. that's going to make them take it serious. >> people who are closing to retirement we are now six and a half years into a pull market, bonds are about to start selling off, yields begin rising again. people say maybe we are at the cusp of when the market is going to turn over. it's hard to people who have been out of the market for this long to then say, oh, now is the right time to jump in. what would you say? >> you are 100% right and kayla is my daughter's name. >> so you said that before. >> the issue is that they are going to live longer. there is a social impact to this because they're realizing they are going to have to work longer and if they have to work longer they are going to give up less jobs to the younger people. we already have an issue with jobs because of technology. so this is a very big issue but they have to start investing. every time i come on this show i talk about investing for the future, i talk about not being short term, being long-term and every year the market keeps going up and they left more money on the sidelines and the stock market, again, you wanted to know our views, we think rates are going to be low for a longer period of time, people are so focused on this -- maybe this rate rise in december and my partner just told me it's not about the rate rise, it's about the pace and the destination. the pace is going to be slowly and the destination is going to be low. so, therefore, with all of the equities coming out of the market by companies buying back their stock and raising dividends, there's not enough ipos to replace that stock. so my opinion, same as last time i was here, the stock markets around the globe are going to continue to rise, favorite being japanese equity markets, second being european, but stocks around the globe. so i still think you've got to be invested in these markets for the long-term. >> peter krause was on squawk box and was talking a little bit about the investing environment, especially after this rate hike which you were just bringing up, listen to what he had to say about etfs in particular. >> etfs need a warning label. there's large segments of the etf population that behave is ways that were not intended to. part of the reason you're earning an etf is liquidity. you have to understand it may not be there when you want it and that is risk. >> you ghies are the etf shop, rob. >> i think that it would be good if he actually got some good information and did some analysis and did some homework on the market. this is a lrj and growing market and i actually would take the other side. i think the etfs have enhanced the liquidity in the market for people that need the liquidity. and we make this whole story about liquidity, liquidity. people should be investing and most people do for the long-term. these are not people that are going in and out of markets but they can go in in a product that is transparent, that is cheaper to use, that is better tax wise and it's diversified. so i would say it is checked all the boxes and i would contend it is very liquid. there are different types of etfs like different types of equities, bonds, all types of products. i think to make a generalist statement that big and to try to scare people away from something that might be very good for them, i think is wrong. >> mike. >> i think you have to do the analysis and do the work and you have to understand that in anything there are always large, more liquid, better type of products within products. >> one of the arguments that he was espousing was in certain asset classes, for example, the popular high yield debt etfs have not kept up with the indexes they are based on. so, in other words, does it really depend on exactly what you're owning inside of an etf. >> it all depends. i would say the high yield is a better alternative in etfs than it may be buying individual high yield bonds. so first of all, the individual investor -- >> between that and a the high yield mutual fund. >> i would say it's better than a mutual fund, cheaper, more transparent and more liquid than a mutual fund. this is something that prices all day long when a mutual fund prices with en? at the end of the day. when can a client get in and when can a client get out. i think there are pros and cons to this and i wouldn't generalize it into one basket. it also should be thought of what type of investor and different investments may be better for one type of investor than another, one type may be better for the long-term and one time may be better if you are a short term investor. i would not generalize them into one basket but id would do the work and make sure that the risk profile, the return, the liquidity, the transparency, the cost all fits that particular investor. >> rob, thanks for being here. >> my pleasure. >> time now for a cnbc news update, let's get out to sue herrera. >> here is what's happening this hour. former president jimmy carter has received good news from his doctors. they tell him that recent tests have shown there is no evidence of new cancer growth and his original cancer problem is responding well to treatment. further testing will continue. pennsylvania's em bat eld top cop appearing in court for her alleged grand jury leaks. kathleen kaine has denied any wrongdoing. pope francis is sitting down with 60 homeless people in florence to have lunch and he was greeted with hugs and kisses before the meal. he ate off of a plastic plate with those around him emphasizing his teachings about the church's obligation to take care of the needy. indianapolis colts quarterback andrew luck will be side lined 2 to 6 weeks with a kidney laceration, the injured happened at the end of the fourth quarter on sunday. the colts believe that surgery will not be required. we wish him the best of luck. that is the cnbc news update. back to you. thank you, sue. the head of short selling firm citron research compared valeant to enron and now he says mall inn i don't know is worth than val yabt. and donald trump weighing in on the starbucks holiday cup controversy, that's later on the "closing bell." the s&p added only 3, the nasdaq was down 12. short seller citron research taking shots at another biotech company, this time mag inn krot, the firm saying it has more down side than valeant. meg terrell joins us with more now. >> the story about mallinckrodt seems like it happened in 24 hours and almost may be over although we have to see what's next to come. this tweet came out yesterday from citron research saying that these prices mallinckrodt has significantly more downside than valeant, a far worse offender from the reimbursement system. that drove down mallinckrodt shares 17% yesterday. folks thinking they were going to focus in on this drug axar that mallinckrodt acquired in its acquisition last year. this was a drug that was approved in the 1950s after quest core got it raised the price from $1600 a vile to $23,000 a vile. it has continued to rise since mallinckrodt acquired it, although they say that the price increases obviously are much smaller than that one. andrew les was on halftime report talking about mallinckrodt. >> not only are you price gouging at $27,000 a vile, the amazing thing is the insurance push back on it is not coming because issues like philidor, all the insurance companies are not reimbursing this because they want doctors to practice evidence-based medicine, not peer review studies, but rather evidence-based. this is not valeant, this is worse. >> so saying this is actually worse than valeant at least in terms of the drug pricing situation. now, mallinckrodt has been very communicative about this, it's ceo joined us on squawk box, i spoke again with the ceo of mallinckrodt after the half time report. he systematic took issue with what andrew left said, said he made inaccurate statements, saying their not having as many problems with reimbursement as he implies, they are having issues with reimbursement as many drug companies are. during the andrew left interview mallinckrodt's stock started to creep up from being down 5% back into the green. when i checked earlier -- now it's up about 8%. almost regaining what they lost yesterday, not quite. >> as far as i can tell there is not yet a report onset ron's website detailing as he does with everybody else, it's free you can you can go and get on his list to be a subscriber, there is no report on mallinckrodt yet, is there? >> not that we have seen and everything he said today have been things that he has said before. he was going after quest core, the company that mallinckrodt acquired and got this drug axar last year. his issues are about the price of the drug, the fact that they are trying to expand its use into so many indications and people basically thought maybe we don't like those practices, maybe people don't like that, maybe it's not as moral as they would like it to be but it's not illegal, he didn't drop any new bonds, this wasn't a valeant type situation where he revealed something that made people nervous. >> the fact that it was not directly a valeant situation to me is telling. i wonder as it relates to valeant how much this is going to broaden out to being a general inquiry into how many drug companies do business into these ways, they are aggressive about trying to gain the system of reimbursement and all the rest of it. to me if that is how it goes maybe it's not a bad for valeant, valeant seemed like this one off smoking gun thing. >> sob today put it to segment the industry into value extra extracting companies and value creating companies. a lot of the companies are trying to make sure people know they are not like valeant, not like a turing, but, you know, people are starting to look closely at this spermy pharma model. >> as much as that's the case that it was easy to paint it with a broad brush, still it's funny to think that these are short sellers, you know, just doing normal research which may oi mar not be totally proven correct, they are able to brick this issue to the fore, perhaps inject so the rationalization into the market, create a series of huge moves by these biotech companies or put them into the limelight. it's funny because our first insight is to ban short selling when there is a problem but it is thanks to short selling is that we are getting a deeper understanding of the practices and separating the good from the bad across the pharma space. >> what is to strange here is that this all seemed to come about at valeant because of these reports and some of this was swirling before and we are in an environment a lot of pricing pressure and scrutiny of how drug companies are operating but the fact that this whole philidor thing at valeant could happen and it seems like it was a result of these reports and others have done work here, too, this other investigative research foundation, some other short sellers working on it as well but it does seem like at least valeant in stopping its relationship with philidor is saying there was something wrong there as well. >> right. exactly. kayla. >> i was just going to say with the mallinckrodt situation as kelly points out there is not a report. it's a tweet. interesting that mary joewise chairman of the sec said that the sec will start looking at tweets that move the market this drastically very closely as well because 140 characters could take that much market value off of a company is incredible. >> if there's not a there there his next tweet won't take that much cap out of a company. you basically tweet on your reputation, his reputation has gained a lot of the because of the valeant thing but each one of thieves will tell us whether we are to take at face value every single time. >> he did tell scott wapner that he has wound down quite a bit his position in valeant. >> that was the news as much as anything today. meg, thank you so much. is your financial adviser criminal? and mobile meal delivery services a fast growing sector. there's a new coming to the game in washington, d.c. area. we'll go behind the scenes of that company next. be sure to tune into cnbc today alibaba ceo will join quack on the street. don't miss a single minute. . ideas are frightening because they threaten what is known. they are the natural born enemy of the way things are. yes, ideas are scary, and messy and fragile. but under the proper care, they become something beautiful. well, new york city has murchl ri, san francisco has food rocket, now the d.c. area is getting in on the meal delivery game. kate rogers has that story from the iconic conference down in washington. hi, kate. >> hey, kelly. with so many of us working such long hours who actually wants to or has the time to cook. check out what galley is serving up. forget greasy piz za or ty food. start up galley is out to prove takeout doesn't have to be unhealthy. former living social employees wanted dinner to be fast, cheap and good for you. >> we have a team of chefs like you can see around me today. they are making options from scratch, you can go on our mobile app, the website, choose what you like and in a 30-minute window or on demand we will deliver it out to you ready for you to do one quick finishing set in the microwave or oechb and pouring a sauce over it and has the consistency of the home cooked meal without doing the chopping or cutting, et cetera. >> they launched in 2015 and are leaving d.c. as well as baltimore and bethesda, maryland. >> in less than a year galley has gone from the two co-founders cooking and delivers every meal to a staff of mower than 70. >> and the appeal for investors, no overhead. >> when you think of a restaurant the costs are a lot higher, you are having physical property and real estate that people are coming to. because you are in a physical face that geographic area that you can serve is limited. galley can serve the entire city every day without having that physical space. you win on both sides. >> and, guys, i can attest i've had the food, it's really fast and really good, but of course we're here in washington, d.c. for the third and final stop of cnbc and ink magazine's iconic tour for 2015. under armour's kenneth plank, kenneth coal, liz wet cut letter. >> kayla, you have tried a few of these, right? >> i have done a lot of them, munch ri is very good but the menu doesn't rotate enough to have enough variety. there are a whole bunch of these. you have to wonder when the market is going to consolidate, how many of these the market can support. >> i actually think it could be huge. in a sense -- and i think about this with the whole foods and the struggles that it had. if we're changing in terms of not going to the grocery store but having groceries delivered why not take it a step further and have the whole meal delivered. >> i feel like i live in new york and you have this array of delivery at your doorstep, i don't really live in the real economy where this would make sense. i don't know how much it distinguishes itself in price point or quality from what is convenient. >> what is the price that we're talking? how does it compare with the typical delivery or cooking at home which i imagine would be vastly cheaper? >> yeah, well, i will tell you everything is under $14, that includes tax, tip and delivery cost. so really for the end user it's kind of a no inn brar. if you don't feel like cooking or running to the grocery store it's cheap enough that you could do this at least once or twice a week for many working professionals. >> would that be for one serving, kate, that under 14 bucks? >> yeah. yes, kelly, that's one serving. >> okay. so there you have it. you know, you need to get three or four of them, but for people -- >> maybe that is comparable, too, for the inn creed greed yents to what appear to be sophisticated meals. from a company standpoint taking something like this national, the infrastructure that you need to actually do this at scale is cumbersome. >> do you know who could probably do it, amazon. >> kate, thank you so much? enjoy the rest of the conference. our kate rogers in the nation's capital. we have a market alert on soil to get to, seema mody, what's happening? >> we are seeing movement in the oil complex. screwed inventories according to the api rising by 6.3 million barrels in the week to november 6, $486.1 million compared with the analyst expectation for an increase of 1 million marls again. again, a nymex, wti crude $43 and change. down six tenths of a percent. liars, tramps and financial advisors, we are going to take a deep dive into the criminal history of thousands of brokers. is your adviser one of these criminals? that's next. and starbucks has everybody seeing red after releasing their newest holiday season cups. we will tell you who is calling for a boycott. "closing bell" is back in two. that's where at&t can help. at at&t we monitor our network traffic so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most. sup jj? working hard? here at the td ameritrade trader group, they work all the time. working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this. we all know some broker fees are akin to highway robbery, but is your financial adviser a criminal. eric chemi crunched the data and joins us with revelations. >> that is right. there is talk about creating a fiduciary standard for retirement advice and a new set of commercials encouraging consumers to look up the back ground of financial advisers so we decided to do it in size. there were troubling things. a convicted murderer was one. 80% of the dwis -- 8% of the disclosures were for fraud andp% involved drugs and one person was found guilty of blackmail. we found over 4,000 criminal disclosures of investment adviser representatives. that is the technical term. investment adviser representatives, like merrill lynch, wells fargo and morgan stanley among countless smaller shops. the vast majority of the investment adviser reps don't have any disclosure and the majority of this happened over 20 years ago. a lot of them blamed the youth for the mistakes. they are ten times less likely to have a criminal record. but people will want to know, is my adviser one of them. so if go to the website, we have a link to the data base and the broader trends. >> what do you make of it, mike? >> i think it is interesting and the transparency on this one category of professional. who knows if they did it for every other profession. >> that is the first thing wanted to know. what about lawyers or this or that. and this is something we didn't know what the answers were going to be and they keep advertising for it, let's see. we don't know what doctors and lawyers and other professionals look like. >> kayla? >> you have to wonder what the bar is to lose your license. when we see the class-action lawsuits by investors the practitioners and the brokers lose the ability to practice in the field. but it doesn't happen as often as you might think. >> in this case, for example, it is state by state rule. so most states say if you've been convicted of a felony or a misdemeanor related to money, then you are out. the one convicted murderer who was able to do this is because he got pardoned by the governor of florida in the 1980s and then fined because he didn't say i was convicted of murder and he said well i thought that because i had been pardoned, i didn't have to put it down. they said no, you are getting fined for not putting it down aupd have to put it down going forward. so you could read stories of what they did and why they made the mistakes. >> and that again, the question of whether they are doing a good job, this is just quite simply, mike -- >> it is uncorrelated. >> and outside of criminal offenses, it shows the regulatory history as well, right? you will see if they have other problems. >> customer complaints and financial disclosure. this is one part of the disclosure. 20% had some kind of disclosure and within that 20, two were for criminal reasons. >> and did you publish your criminal history? >> i'm clean. >> we're going to look. >> they said knock on wood. they told me to knock on wood. >> eric chemi, thank you. donald trump is shy to a fight. up next, what he is telling people to boycott. "closing bell" is up next. and can you explain why you recommend synthetic over cedar? "super food?" is that a real thing? it's a great school, but is it the right one for her? is this really any better than the one you got last year? if we consolidate suppliers, what's the savings there? so should we go with the 467 horsepower? ...or is a 423 enough? good question. you ask a lot of good questions... i think we should move you into our new fund. sure... ok. but are you asking enough about how your wealth is managed? wealth management at charles schwab. in panama, which is a city of roughly 2 million people, we are having 5,000 new cars being sold every month. this is a very big problem for us with respect to fast and efficient transportation. it's kind of a losing proposition to keep going this way. we are trying to tackle the problem with several different modes. one of them is the brand new metro. we had a modest forecast: 110,000 passengers per day in the first line. we are already over 200,000. our collaboration with citi has been very important from the very beginning. citi was our biggest supporter and our only private bank. we are not only being efficient in the way we are moving people now, we are also more amicable to the environment. people have more time for the family and it's been one of the most rewarding experiences to hear people saying: "the metro has really changed my life." cornerback. the controversy over starbucks' new red cups lives on. donald trump weighed in during a rally in illinois, yesterday. >> did you read about starbucks? no more merry christmas on starbucks. no more. [ booing ] >> i wouldn't buy. hey, look, i'm speaking against myself. i have one of the most successful starbucks in trump tower. maybe we should boycott starbucks. i don't know. seriously. i don't care. by the way, that is the end of that lease, but who cares. well you know who mike care is, howard schultz. i was looking up starbucks, still up 1.4% on the day. >> even beyond what trump had to say, i don't think they expected any blowback on the cup design. with regard to mr. trump, he said he's never had a cup of coffee. beyond alcohol and drugs, he's never had coffee. maybe he is not a boycotter. >> that is the thing i believe. he has enough energy any way. and i find it interesting that starbucks has been a lightning rod for controversy this whole year, from race together to the cost increases that the company has seen on the core products. i just think that starbucks does something and people react because they feel so close to this company. but if you think what is on the cups over the years, it is really snowflakes. a lot of it has been message agnostic. >> i feel like i missed the story under our noses. when we took the show to an internet paper factory, we saw how paper cups were made including starbucks. the holiday cups were available and in the factor there and under embargo. so if only i had paid closer to attention to what was really going on on that cup design. >> you might have saved them all the headache. i saw the boxes delivered to starbucks and it said do not open until october 10th or something. >> and they broke into barnes and noble and get a copy to tell everybody what is in it. >> i can't believe the starbucks' cup is under embargo. >> so what are you watching today. >> the yield markets. >> kay lar? >> i'm watching singles today. not the sticker number that we see tomorrow but really the product mix. what people in china are buying and what that says about the strength of the consumer. >> maybe the bond market is closed for veteran's day tomorrow. >> we'll have veterans tomorrow at the stock exchange which is open. we'll see you tom. "fast money" begins in moments. melissa lee, what is on tap. >> shares down 22% and what the bond market is saying about how sun edison will trade in the future. >> over to you guys. >> thanks, kelly. "fast money" starts right now. overlooking time square, i'm melissa lee. your traders are tim, dan, karen and guy adami. tonight on "fast," one of the most widely held stocks on the street is the biggest loser of the year. what the apple big slide could mean for the broader markets and how you could praft. and the secrets of beating the street. how about extra cheese and french fries. fatty foods could be good for your portfolio. we'll explain. >> and an undercover market indicate could be the start of a recession. the one chart you have to see. but the top story. copper

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