Transcripts For CNBC Closing Bell 20161011

Yields and concern that the turmoil of the Republican Party could lead to a democratic landslide which would mean no more grid lock in washington. Well dig deeper into all of these issues coming up. And then earnings. The seasons kicked off and alcoa shares are sinking. Is it a bad sign of what is to come . The shares are down 11 . Bio tech is getting hit hard. Illumeina, we will look at other bio tech busts that investors should be wary of. Samsung ending production of the galaxy note 7 smart phone after replacement phones caught fire. John ford is following the latest. Josh lipton with the look at the opportunity this creates for apple. And Courtney Reagan has reaction. Very busy today. We are joined by mark, kenny palcari is standing by and Rick Santelli will be checking in from chicago shortly. I guess he is still mourning last nights cubby loss. Be itemized the litany. Are we doing news now . This litany of why the market is down today. Are you buying all of that, oil, rise in yields . You are absolutely buying all of it. Oil backed off but oil had this big run from 45 up to 53 all on the talk. Not the end of the world. What it is doing it is especial potentially going to set up for inflation and brings in reality for future fed policy and now we have alcoa and what does it mean about the future on friday when we get jp morgan and citi bank is this setting us up for another weak earnings season. It kind of makes sense. Throw in the election drama and it is creating anxiety. We broken support on the s p and now are we in the 2067, 2140 range . Why do you think the dollar is strengthening . Why do you think the yield is rising today . Is it a sign of strength . What do you read into it . I think there are two reasons really. As it relates to the dollar and Interest Rates i think like kenny said its the threat that the fed is emboldened to act in december if not even before as was suggested was a live meeting. The other is that we are seeing a back up in yields globally. The spread of the u. S. Treasury bond yields over that of other global Government Bond yields is staying relatively the same except those moved up as a consequence of increasing sympathy. So i think collectively it is helping to push up the dollar and we are going to see more of that particularly if the fed continues on the campaign to move Market Expectations up. In our view is likely to occur in december. Rick is joining us at 176 which takes us above the recent trading range before the brexit vote. Are we starting to see a break out here . What are you expecting to happen . I think thats pretty much the case. I think we are seeing a break out here in some form or fashion on the long end of all whether looking at the jgb. We can talk about emboldened fed and this is all because of the fed hinting. If there is one thing i can tell you its that the fed is liking that Arnold Schwarzenegger moving and holding on to the bottom of the helicopter because the market is rising and rates are rising and the stock market doesnt like it. The dollar not only is along for the ride on what is going on with rates completely rejecting the notion of the most active central bank policies. Also because of the currencies whether the yen or the euro it is all catching up with them. The outfit of the carry trades, reversals where risk parameters are, how everything has gotten kind of equalled out, all of that is coming to a boil. The fed can either join it or not. The market is moving regardless. I think it is highly likely as long as we close above 175. We are at 176 now that a test of the 190s or 2 most likely is pretty close. There are a couple different ways to read this. It could bow a sign of strength in the sense that people say wages move up or a sign of weakness it feels like the policies arent working so we have to try Something Else. What do you think is the broader reason . It implies a very different outcome for stocks and cyclicals. It really does. I dont think it is the latter of the two points as it relates to the fact that things are worsening or the fact that they are running out of ammunition. We are seeing some creep. Oil prices are input to inflation as is wage inflation, of course. I think some works are being done for it. The dollar is now strengthened up to around 97ish. Its basically defacto tightening. I would not be surprised why i wouldnt assign 100 probability if the fed comes up with another excuse if we continue to see rates move up to closer to 1. 9 for deferring until 2017. As we head to the close you were telling me 2138 you saw the support broke earlier today. Give me the scenario. You think we need to close back above that . I think if we close back above it and close just above it it will give us a little bit of relief. If the market closes below it just sets it up. Its a negative message. We couldnt hold support there. We have tried it a couple of times. This time we broke it. If we cant hold it it will set us up for a little more weakness. Do we test 2067 . Im not so sure. Could we churn down here a little bit . 2,100 would be an intermediate stock. I guess the one thing im trying to understand is if we are talking about global Central Banks moving away from easing and global bond yields moving up why is it that the dollar is up so much against other currencies . It is up about three quarters of a point today. 97. 5 could be looking towards 100. I think it is because that the fed is the closest central bank to more normalization. I think the u. S. Market is leading the charge and the central bank most likely will accommodate or get lost in the shuffle. I think that move in the dollar index is real and as far as what mark pointed out i never read anything where any of the committee was trying to push for stronger dollar. As a matter of fact it is probably the single biggest factor in why they have been dragging their feet t. Is nothing they want to see but nothing they can prevent. Any opportunities you see sector wise . I think that there is. I would use this opportunity to step into names that are getting blasted today. I think bio tech looks right. There has been no ipos. I like some of the Consumer Discretionary sectors. Not restaurants and automobiles. Things around the housing related industry are things i think investors can look at here. So those will be a couple of areas that i start to put into my shopping cart in anticipation coming up. Also brings up politics when we talk bio techs. Well see which way that one goes. Thank you for now. See you guys later. We have breaking news, results of a new nbc news survey monk poll taken after the president ial debate. John harwood with the story. That was a very good segue by kelly from bio tech. Here are the results. This survey was an attempt to measure who won the debate and how it changed views of the candidates. What we saw was by ten Percentage Points 34 to 44 , americans said Hillary Clinton won the debate. She didnt win it over donald trump by as large of a margin as the first debate. Nevertheless, she did win according to this nbc survey monk poll. How did views of the candidates change . A lot of people didnt have their minds changed at all. 17 said they had a better view of clinton after the debate. 23 said worse view. 59 known Hillary Clinton for a long time said views didnt change. Donald trump had similar numbers, 23 had their views improved. 29 went negative on donald trump and 48 said their views werent changed. It is not likely that the debate with margins that close and how people judged it will independently have a great effect on the race. That is what we have. Much bigger margin there in the second debate. Thank you, john. Thanks, john. And continues to play on the markets. More on what odds people are talking about for them taking not just the presidency but also maybe the senate and the house. Lets get to full Team Coverage of samsung celling the galaxy note 7 for good. In an unprecedented move samsung has given up entirely on galaxy note 7. Reports popped up of batteries overheating and phones bursting into flames. Samsung sent mixed messages prompting criticism. Next came the embarrassing recall followed by a replacement program. Over the last week that program has turned into a debacle. Several supposedly safe phones burst into flames and how badly singed samsungs reputation is. The note 7 is around 5 of smart phone units it is higher percentage of the profits. Apple and samsung are about the only ones able to consistently book profits based on ability to build marketing machine around it. Maybe the fall out here financially is in the range of 17 billion as credit suise has estimated. It could be larger. Just an amazing couple of weeks for that company and that product. And the timing of the disaster could not have been better timing for apple. Josh lipton has that part of the story for us. Thats right. So one companys failure can be anothers opportunity. Samsungs note 7 priced at around 850 competed in that Super Premium part of the smart phone market. That is a market dominated by apple according to strategy analytics. Tim Cooks Company controlled some 65 of that market. Samsung took 27 and then there are much smaller players like sony at about 2 with experia phones. Now that samsung has ended production and sales of note 7 investors do think apple could benefit. You have seen stock pop about 13 . Brian white says apple can pick up at least 8 million incremental units this year. More broadly he says this could permanently damage the samsung brand, a big potential opportunity for apple to gain market share. Chinese players could also benefit but he says samsung could make Marketing Moves of its own like cutting price of popular s 7. He does argue some damage control could still be in samsungs hands. Courtney reagan is at a Samsung Store here in new york. What are you hearing from customers . Reporter i hear what josh is saying. Wall street and consumers may be saying different things. The u. S. Consumer Product Safety Commission is urging anyone who has the Samsung Galaxy note 7 phone to turn it off and stop using which means Everyone Needs a new option. No one we spoke to here is ready to give up on the brand. It doesnt discredit the brand. Technical issue and they will come up with a solution. Im not going to switch from samsung to any other device. Samsung is the best. Other major wireless carriers and retailers including best buy and amazon are offering either exchanges or refunds for these potentially fire catching phones. One of the folks we spoke to tried to get a refund. He has to call a 1800 number, ship it back and get a full refund. He had an older device and reactivated that. While many folks did love this device i think they also realize they have to do something Going Forward if these are potentially safety hazards. John, it is probably too early to speculate. What do you think happens to the future of the galaxy brand . I think the galaxy brand survives. I think the question is does it grow from here . Its been pretty set in the smart phone market. It matured. Apple and samsung had massive share. Now you have google trying to make incursions. It would take a big event like this one to short of shake the market loose and give the opportunity for it. The people showing up at a samsung show are likely to be loyal to the brand. There is a margin hit you take if looking to buy a 950 phone and forced to buy a 750 phone and there is question of reputation repair. Samsung spends lots of money on commercials on celebrities very few can name a single executive there to speak for the brand. Is that something they can fix . Did anybody mention apple as an alternative . Reporter so when we asked everyone if you are going to exchange it where will you switch and no one suggested that they were switching to apple. It does make sense even verizon ceo told Julia Boorstin that if you are an android user you are much more likely to stay in that universe which would make sense on the flip side if something were to happen to an apple device. You may not stay with samsung but may stick with android. No one here was interested in switching to apple. You wonder if apples strategy changes because of this apple iphone killer has gone by the way side. They were probably just bracing themselves for that because it was coming out just before the iphone 7. You wonder what the strategy will be now. I think to your point that was what the note 7 was thought of. That was going to take over for the iphone if you were going to win people away from apple. This was the phone that might do it given some of the features, pen, vr. I think that apple does already control the premium market. Any wins would probably be incremental. As john pointed out that is the part of the market where you see the profits. The smart phone market as competitive and tight as this one, any incremental gains are welcomed. You can see traders and investors reacting to that possibility. Josh, courtney and john fortt thank you so much for joining us with the latest. Former apple ceo john skully will be weighing in and on what samsung could have done differently to save the galaxy note 7. A down day. The dow was down 267 points at the low of the session. Now down 227. Coming up Mario Gabelli speaks to us exclusively. Well discuss the possibility of viaccom merging with cbs. Up next bio tech blowups. Illumina, we will assess the damage after the break. You are watching cnbc, first in Business World wide. Mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Sign up at etrade. Com and get up to six hundred dollars. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Welcome back. Twitter is bucking todays down trend although it is still down more than 20 since last week on reports of stalled takeover talks. David favor reported twitter is still trying to get a deal done with sales force and upgraded from hold to sell noting the recent decline. Today it is up 2 . And batteries made before may of 2015 can quickly and unexpectedly deplete. Batteries, that is. Saint jude says less than 1 have seen premature depletion. Two deaths related to the battery drainage have been reported. Saint jude is in the process of being purchased by abbott labs. That stock is down a third. Lots of trouble in bio tech. Illume nutumbling. Down about 25 . This is not the first surprise like this this year. Folks reacting pretty negatively here. The company saying Third Quarter sales came in around 607 million missing guidance due to a larger than expected decline in that sales. This is the largest maker of genetic sequencing machines. Does this mean people are sequencing less . Most say that is not the case. These machines are so expensive that a miss like this of just 20 million could just be a few machines. So there is an argument here is there overcapacity in the system . Have people bought enough that they dont need to buy more or is Something Else going on. Clearly a similar one in april driving the stock down about the same percent really people starting to get concerned about this. If you look at other stocks working in the space both of those also really taking a hit. How would you compare this . We had a lot of companies that have fallen. Is there some line to draw between all of this . A lot of folks have been wondering should we tie to the bio tech sector and say maybe it is less sequencing. Most dont seem to think that is the case. Having the safety issue whether stopping a program. The rsv vaccine not working. I was talking earlier today about the idea that are there more of these than usual . It is a very bad bio tech tape. The year has been pretty negative with focus on drug pricing. They are to be expected. They come with the territory of investing. There hasnt been as much positive news drawing the sector higher so you feel those. There have been some positive news. Sarepta got approved. As usual leave it to me to state the obvious. I point out what you said, bio tech is like the wildcatters in the oil patch. It is a very risky proposition. You cant forget about that when you invest. We have a collection of about four stocks that if you look year to date just precipitous decline including nova vax. Unfortunately, that kind of thing comes with the territory. Invest with caution. About 35 minutes to go here. Dow is down 267 at lows. It is currently down 200. S p dropping 26. Nasdaq down 80 today. Up next amazon delivers groceries to your front door now reportedly planning to open brick and mortar Convenience Stores for customers who plan to shop the Old Fashioned way but with a technology twist. Billionaire money manager Mario Gabelli gives us his take on todays selloff. When youre on hold, your business is on hold. Thats why comcast business doesnt leave you there. When you call, a Small Business expert will answer you in about 30 seconds. No annoying hold music. Just a real person, real fast. Whenever you need them. Great, thats what i said. So your business can get back to business. Sounds like my rides ready. Dont get stuck on hold. Reach an expert fast. Comcast business. Built for business. Comcast business. gasping are you all right . I was in a room full of light. You were there. You were financially secure it was glorious. How do you know that . I work at ally its my job to know about finances. What else did you see . Did i have a speedboat or anything . Toss me back in, ill check. Hes finding out if i have a speedboat nothing stops us from doing right by our customers. Ally. Do it right. Negative on the speedboat. Going into the last half hour of trading with the dow down 209. It was worse than that earlier. It was down 267. We have come back a. Mir ideological of reasons. Higher yields, stronger dollar. Kroger is in the green today. Morgan stanley says the Supermarket Chain may wrap up the Specialty Retail concept and ruler foods. He says that could unlock incremental value. Amazon is expanding its seek system in addition to assets from prime to video to devices and other Services Like amazon fresh, airplane and book store. The company is now looking to expand its grocery business with new Convenience Stores. The company says they dont comment on rumors or speculation. That is why we called james. They have opened a book store. They are making this into brick and mortar. Book store now thinking Convenience Stores. We have to think about why they would want to do this. Grocery is the biggest single component. 20 of purchases go towards grocery. When you look at the other categories like media, electronics, these are 30 , 40 penetrated into online. Grocery is at 2 . You have the huge way to go. At the same time they are investing in getting fulfillment centers. So this is just a natural extension. What are we talking about . What can you tell in terms of how this concept is going to work . It is still pretty early. Right now it is geared at amazon fresh customers. You are able to go to the stores and pick up and at the same time do drive through where they can recognize the license plate. At the same time you have to think about walmart redeploying capital. They have the infrastructure in place. Its a challenge for both companies. The beauty of the online model has been lower expenses because you didnt have the brick and mortar to deal with. They have that in the warehouses. I hear they are thinking about other showcase. They already have showcases called best buy and barns and noble. What do you think of this plan to go more traditional, if you will, in terms of their Business Model . Anything you can do to increase touch points with amazon platform is a win. As far as groceries is concerned that is the highest touch point purchase category. If you can do that and further penetration of prime you are going to just expand lifetime value of every customer. It seems like everybody is trying to get or improve their grocery business. I think i read about k mart. Is this too many people chasing a market that seemed to be deflationary . Top players its not an easy market to incur. You have to deploy a lot of the caution not to get ahead of yourselves because it has been years. I was looking at my initiation. We are already double to 2 . I dont think this is going to overnig overnight. Lets send it over to dominic chu. We are watching shares of lpl financial, the biggest independent broker dealer registered Investor Company in america worth about 3 billion and due in part because of a spike on a reuters report citing sources saying the company is working with possibly Goldman Sachs to explore strategic alternatives. The shares as much as 11 after trading halt. The shares up about 8 . Still 1. 4 million shares traded almost three times average over the past three months. We are in the process of reaching out to both lpl and Goldman Sachs for a comment. We will bring you details as we get them. Thats the reason why those shares are spiking. Thank you. Appreciate it. Time for cnbc news update. A federal judge has rejected tyson foods request for a new trial in a case that awarded 5. 8 million to thousands of employees of the pork plant in iowa. The employees sued to collect pay for the time they spent taking on and off protective work clothes and equipment. Comcast fined for charging cable customers for things they never ordered. Comcast is the parent of this network. Mars pet care recall ag limited number of classic wet dog food due to choking risk of hard white pieces of plastic that made their way into the food during the production process. Mcdonalds says Ronald Mcdonald is keeping a low profile. The company says it is being thoughtful in respect to his participation in Community Events as a result of the climate of clown sightings. A lot of good clowns out there. I guess. I have completely missed this whole creepy clown concept. We have reported on the creepy clown about four or five months ago in green bay, wisconsin. That was the first clown sighting sblm sighting. Well see what happens on halloween. The clown union will contact you. Maybe retired sitting with buddies talking about grabbing rifles and going bad clown hunting. Its getting pretty serious. We will long be better after november 8. We have 26 minutes left in the trading session with the dow down 203 points. A leading trader will tell us what he is watching heading to the close of trade. Former apple ceo john sculley gives us his thoughts on the Samsung Galaxy note 7 disaster and how the company could have done better. Enis really built into theat foundation of the company. Whole foods market is engaged with pg e on many levels, to really reduce energy and reduce our environmental footprint. For a customer like whole foods, saving energy means helping our environment, and we can be a part of that. Helping Customers Save Energy is a very important part of what pg e does. We can pass those savings on to the environment, the business, and the community. Pg e really is an expert in saving energy, and that partnership is extremely exciting. Together, were building a better california. The dow down an even 200 points. We talked the impact of oil, correlation with equities going in and out. I think it is back again right now. And you know you and i have chatted about this. Everyone was myopic on the fed. Everyone is watching opec and crude. Crude needs to keep reallying in order for the s p 500 to keep rallying. You dont think there will be a level . For me i think the lid is going to be 55. The idea of opec keeps it open ended. People want to keep those shorts covered going into opec thmpt risk is to the upside. It doesnt matter what comes out they are going to fail. No one will abide by it. Ultimately sell energy and the market. Russia abiding by whatever deal. What is the operative word . Iran came back online. Libya back online. Nigeria back online. A host of reasons why they are not going to cut production. What levels you watch on the s p . Thats the old high. 2015. That is recent support. 2119 the recent low. Below that it gets scary. Well talk about it if it happens. If it happens. The operative word there. About 20 minutes to go here. The dow is down about 199 points. 267 at its low. The s p down 26. The vix is up by more than two points. Transports are hanging in there. The nasdaq is down 82. And this morning on squawk box titan cooperman says he has no plans to make a deal with the sec. Coopermans plan to fight back is next. Samsungs exploding phones a major competitive setback. We will talk to john sculley about what the mess means for both companies. Welcome back. Often when people are under federal investigation they go underground. Omega advisers is facing Insider Trading charges was on cnbc this morning fighting back. Some of the highlights of the visit to squawk box this morning. It was a pretty animated discussion as you might expect knowing a little bit. He started off saying he would read a statement that would sum things up. It was anything but a quick read. Cooperman says he is aggressively fighting a case file even though he could have settled for relative peanuts. Money is no option in this citing his friend who told him the 30 million he had spent defending himself against Elliot Spitzer in a case involving compensation was the best 30 million he had ever spent. Omega and i have always followed the law. Anyone who has done their homework understands omega was built on doing detailed fundamental research. We could have settled for an amount far less than i donate to charity on an annual basis but i refuse to do so but i know we acted appropriately. It took me 50 years of hard work, very long hours, playing by the rules to get where i am and im not going a let them basically unfairly destroy my legacy. Cooperman noted that funds are all up on the year. Some outperforming the markets and that his son looked like he actually may have been the whistleblower, complained about unusual options trading but didnt throw me under the bus or anything. Cooperman said he didnt share inside information from his son whose own short position kpael wouldnt have benefitted from this alleged tip. Pretty complicated stuff. He has said that wayne is prepared to testify. As you can see regulatory issues, complicated family dynamic, business to run in the meantime. He says he is most concerned about employee whose are being put through a lot but he is going to fight it. And a legacy at stake, too. Absolutely. 30, 40 years in the business. He has been a tremendous stock picker over the years even though last year or two he had tough calls and under performance. Terrific reputation and this was a surprise i think. Somewhat risky move. Thank you. We are heading to the close with 15 minutes left in the trading session. The dow holding steady. With todays massive sell off we will take the market pulse with two Fund Managers right after this. From the sell off to cbs we will talk to Mario Gabelli in the next hour of closing bell. Stay with us. You do all this research on a perfect car, then smash it into a tree. Your Insurance Company raises your rates. Maybe you shouldve done more research on them. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. And if you do have an accident, our claims centers are available to assist you 24 7. Call for a free quote today. Liberty stands with you™. Liberty mutual insurance. So with about 11 minutes left the dow down 192 points. You were just saying art cashin told us the market on close orders tilting slightly. See what that does to the market going in. Joining us on the floor of the New York Stock Exchange two veterans fill orlando and steve dudash. Phil, what is going on with the market . When we started earnings season we are expecting earnings down 2 to 3 . It is gdp the run rate. Everyone is taking their estimates down. The fed looks hell bent upon starting to tighten. I am surprised that the market is doing as well. We are near alltime highs. Our view has been that we are going to hit an air pocket maybe 5 to 10 lower this summer. This summer . This fall. Down a percent or so here given the political uncertainties doesnt really surprise us. You see an air pocket . We have a lot of clarity. The political world that you are addressing is starting to get clear on what is likely the outcome. It takes that volatility out of the equation. The hurricane wasnt quite as bad as what it could have been. And the unemployment numbers were great. We are at full employment. It is hard for the fed to argue that we need the cushion, the support they have been doing so they are going to start getting out of the equation soon and now we are looking at the environment with no politics or less politics and policies that arent driving the markets. What sectors do you like . Typically we have a well balanced portfolio overweight in europe. Qe infinity is going on. They are going to prop the market up for a while. Our market is probably fairly valued right now. If you are trying to get extra bucks you can look that way. Where are you going to make money . We are pretty nervous so sitting with auto neutral allegation in Global Allocation Fund and the sectors that we like are the ones that arent doing as well right now which are the more defensive ones because we think we can hit an air pocket here. They had been a crowded trade. First half of the year. They havent had such a great second half of the year. We are sticking with them here until we can determine whether or not we are going to where is the bottom . Is it 2,000 or so . Once we get clarity on Election Results and fiscal policies then we can maybe put on sort of a growth overlay and begin to focus on financials and energy and technology. We have radekally different views of what could unfold here. You see the economy turning lower, rates turning lower and the resulting investments. You are talking, steve, about the fed tightening, about conditions being supportive i guess of cyclicles and rates moving higher. I am worried about financials. Because i dont think if the fed raises rates does that mean a lot to their bottom line at this point . You think they are on their knees praying for a rate increase here . 25 basis points doesnt pop the bottom line enough. Wells fargo is in trouble. They told their sales force stop selling. So you have to watch out for that financial market. Its a fair point. We think there is a rate hike in december. Exactly. Thats part of the conundrum. We think the fed wants to get the funds rate back to 1 . We think that could actually exacerbate maybe the contraction or down turn in the economy and that is part of the conundrum that we are dealing with here. If the fed moves funds rate up that widens Profit Margins for the financial stocks. They are pretty cheap. Financials dont look too bad here. How long will it take . Its a huge move. What we are talking about in a best Case Scenario is maybe next summer maybe june meeting. You mentioned you like europe. Does that include Great Britain . It doesnt because there is too much uncertainty. Why would i buy something that there is no blueprint and no way of saying this is what we would expect them to go through the process. It could end up great. Right now their currency is having a rough time. Does that prop their markets up . Probably. Does it do enough to get through the economy . No. I dont want to be a part of it. Mainland europe staying away from financials because they have real problems in their financials, too. Good to see you. We will take a quick break with the dow down 197 points. We have closing count down. After the bell the reunification of cbs and viaccom almost seems at least as far as investors are concerned. Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. 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And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle and it keeps my investments fully mobile. Even when im on the move. Sign up at etrade. Com and get up to six hundred dollars. Three minutes left in the trading session with the dow down 200 points. Bob pisani joins me today. Everywhere you looked there was a reason for the market to go lower. I have them all right here. You want to walk through this here. Oil started us off here. Bit of a come back. It is a market overheating, maybe coming off the boil right now. Today a decline of more than 1 but holding above 50 a barrel. Oil has been over 50. Yields going higher as we talked with Rick Santelli. If we finished at 176. Almost to 177 we are above the recent range we have been in since the brexit vote here. We are at 1. 10 against the euro. Our fed is the most likely central bank to be normalizing while everybody else is easing. It is almost going back to march. One reason we impact on materials and commodities. Alcoa impacting. Bio techs got hit hard today. That didnt help. Illumina and that index down today. We are expecting very good Earnings Results from pharmaceutical stocks, very good Earnings Results from hmos and remember discussion about possibility the house could go democratic. I think that is a possibility. Hillary clinton said she wants more regulation of pharmaceutical stocks. We saw big farma names all down today. And what went up . How about the vix . Did you see the big increase in the volatility index. A 16 increase. That is not even the peak that it hit today. We are at 15. 6. We were talking about oil stocks. There is a big ipo tonight. First Production Stock we have seen in two years. They work over in colorado. Here they are pricing over on the nasdaq tomorrow. We had oil over 50 is a big help for them. At the same time the market down today. This will be the first real test of the hot ipo market that we have had. Down 190 on the close. Proctor gamble and save the children are celebrating International Day of the girl. Stay tuned now. Well assess what now for samsung with the demise of the galaxy note 7. Thank you. Welcome to closing bell. Im kelly evans. Down session today erasing much of the gains we saw to kick off the week. Dow dropping 196 points. S p 500 down 1. 25 . The nasdaq definitely the worst performer of major three today down a percent and a half and nasdaq 100 only two stocks positive costco and apple. The dow pretty much only apple was in the green. The nasdaq dropping 81 points on the composite to 5246. We will have more on this in just a moment. Mario gabelli will join us live on set here. He will weigh in on everything from todays sell off to the potential cbs via com merger. Joining us mike santoli along with danny hues. Also with us is guy adami making his return. A lot of different things. Everywhere you look there was bad news. The stock market absorbed some of that. On the political side just seems like it is getting to be a sloppy process with the potential for more bombshells. Maybe the chance for a democratic sweep y. Dont think the market is extrapolating to that point. You have had volatility in the Government Bond market, in currencies and oil that the stock market has been insulating from. I think that is something as well as the pricing in of a december fed move at a time where we are not sure corporate earnings are set to rebound. For broader context the s p down to basically the bottom end of the range prevailed since july. This was a shake out. We have to see if it continues. Especially with the dollar a lot higher today. Interest rates continuing to move up a little bit. You have the continuing fallout from brexit. The british pound down significantly. Another tumulltuous day. It sets off the question of what is going to happen when the brexit does happen. That is a concern. Then you have alcoa reporting today which was the industrial tell of what going to happen in the future for the economy. That is a big concern. The only solace might be the fact that alcoa is no bell weather as far as researchers are concerned. Its not in terms of direction of earnings reactionism i think it is a sloppy result. It is not welcome and in a vacuum without other proof. It seems like it is a theme when you have United Technologies and dover and honeywell saying some sort of statically things. You need to see big earnings because we will see Interest Rates start to rise. If you dont see earnings look better that will weigh on the market. We get csx Railroad Company going to report tomorrow, banks on friday. Some suggestion maybe they can be a bright spot. Take wells fargo out of the equation. Lets talk about bank earnings. I absolutely think they matter. Jp morgan probably leads it off. Obviously, they are running their business really well. They could set the tone for how we close out this year. I wish i could tell you how well they are going to do. Think about the move we have seen in the stock since the february 11. Recall the s p traded to 1810. It was later that jamie dimon announced he was buying shares of jp morgan. Stock was 54. It has been in a tremendous rise in an environment that hasnt really improved that much for the bank. The real question is too much too fast . We will find out on friday. What is going on really . These Industrial Companies although the economy has changed, dover, ppg, United Technologies, honeywell, they are all saying similar things and its a little bit scary. The strengthening dollar as much as politicians want to say it is a great thing it is certainly not for a lot of multinationals. We were kind of joking whether it was the hillary rally. There were comments from vladimir putin. Oil was strong. In what sense is politics feeding into behavior we are seeing now . The sharp decline in health care probably has something to do with if you get a clinton win combined with whatever control in congress. Health care trades off those kinds of headlines and fears as oppose today what is going on. That is one small iteration. The process has become volatile. We hear the race has not been that different over the past few months. When you have this capacity for leaks and bomb shells and i dont think people are comfortable with the sense that it is a really chaotic process. It has been a train wreck from the beginning. There is no doubt about it. I think anything that happens trump today declaring war on the entire gop that is a huge headline. That makes everybody very nervous. With health care that is a big concern. Bio tech, too, they have been on the firing line. A big concern about what will happen with a lot of industries. As much as we are bracing for that impact as the election draws near a close here the fact that people are price frg soinge kind of clinton are we ready to look that far ahead and make assumptions that she has this thing in the bag . I dont think you want to reorient your portfolio with that assumption but i think you have to look at what the probabilities are. If you look at composites and market based betting markets that is where probabilities lie. I dont know that that is the linchpin of fed move in december. Depending the election can go either way. I think they are saying there is a 68 chance that they will raise rates in december which is definitely moving some of these bank stocks. It might be a good time to pick up names that are just really missing bench marks. If that is going to happen. Hopefully it will happen. We doept always want to be in this particular part of the market with no interest rate. If people want to side step having to call the outcome of the election do they have to get out of the market until that vote or is it the sense that it is priced in or we saw what happened with brexit . Sort of a dangerous question. Im not going to say people need to be out of the market. I will say this. Sometimes there is nothing wrong with taking a pause and taking a fresh look a little bit farther down the road. If you take money out of the market here and im not suggesting take everything out, you take a few dollars out here what is the most you miss from now until january 1 . As opposed to potential for something to happen on the down side. If it helps you sleep you should be thinking about pairing down risks. I will say this if they do hike theyre hiking into what i think is an earnings recession and that is not a healthy brew. I think they know it and realize they painted themselves into this box. I know mike will probably push back on me. With each passing day the fed i believe paints themselves into a corner that they cant extricate themselves from. Are you going to make good on the upside that we miss . Im not going to make i think you understand my point. You live to fight another day is never a bad thing. Nobody ever went broke taking a profit. I think we agree with that. Big banks reporting later this week and investors are paying close attention to wells fargo. The Company Announced restructuring of top management in the wake of fake accounts scandal. Coo widely expected to take over the role after john stumpf. Lets go to emily fox. A lot of focus on Financial Performance but sounds like they are trying to scrap old way of doing things for a new one. Is that enough to clean up this crisis . I think putting someone in the number two spot who knows if that will be the number one spot, that is a big statement that leadership is going to change. Culture is going to change. I think another part of the restructuring is new group that is a group that is tasked with digital innovation. I think that is a signal that they will really try to be consumer focussed, really try and make this an easy, accessible, Convenient Bank for people. I think that that is a big statement for wells fargo Going Forward. And wells fargo got a lot of credit for basically being better at selling at some level. Does it change anything about the overall banks identity or approach or how it has to sell itself to customers and investors . I think the first step is that they need to be patient. They need to listen to customers. I think they need to deal with remediation for the mess that just happened. They need to let the scandal die down and then go out with the market about the new things they will offer for customers and the ways to make this better and cheaper and more convenient in the future. We have the Attention Span of gnats. I think the scandal will die down. We have been getting long wells fargo. We have actually bought into the scandal knowing that fundamentally this is a strong company. They have a great business. They have a growing business. 17 year over year. That is one reason why the stock has traded where it has. If they come with new model the fact that their culture was working in terms of it was growing the numbers, able to launch a bunch of new products and putting up results what happens in the transition period towards their new models . I think that is a great question. With any very large organization, any cultural change will take time to filter through especially at a very heavily regulated industry. I think they will catch up with respect to earnings. The stock is off 16 year to date compared to jp morgan up about 3. 8 . Some other u. S. Banks soft 4 or 5 . From a value perspective and with the dividend that it pays it might be worth it. I think right now as i understand it the story line is worse than actual financials for wells fargo. Have you been able to glean anything from consumers . There has been quite a bit of outrage. Even people showing up at branches demanding to know what is the deal, where do i look . How much of a reputation problem could that be . People are angry. I think the trust factor cannot be diminished. It is important for people to trust their banks. This is their money that they get every week. I think the American Consumer if they say i dont like what they did, what they did was wrong and this is cheaper for me and easier for me they will be willing to forgive it down the line. I guess the risk is while wells fargo takes the time to be patient the competitors are saying we are not wells fargo. You are going to side step this one for now . This one i wont side step at all. He gets up there and takes full responsibility. What does that mean . There are no ramifications for that. I apologize. I take full responsibility. Great. And he is back at his job the next day. Your point about wells fargo, the stock, i hear what danny is saying, this stock started going lower long before headlines broke of wells fargo. It made alltime high may and june of last year. Other things are going on. To mikes point as they sort of lie in the weeds other people are catching up and passing them by so the premium valuation that they maybe deserved a couple of years ago they no longer do. If it is too hard you put it in the too hard pile. Side stepping it aint me. Thanks for joining us. Well let you go. The rest of the crew on fast money with top technician saying he found the most important trend in the market that could send one group of stocks higher. He will be here at 5 00 p. M. Eastern to explain. We have a news alert on youtube. Julia boorstin, what is happening . Google announced it is buying a startup to bolster content. The company will help leverage googles relationship with brands. The goal is to make it easy and affordable for brands of all sizes to be endorsed by youtubeers or integrated into their videos. Here i just spoke to youtube ceo about the importance of giving their content creators more tools and in the wake of facebooks measurement mishap he said youtube is more focussed than ever on transparency. Metrics are really important. And thats why there are third party metric companies. Thats why we work with them. Neilsen, mrc. So i think it is really important. At the end of the day advertisers can see it in their own numbers. They paid a certain amount for advertising. Did they get that lift . Also talked about the importance of Live Streaming where they are seeing Significant Growth as well as youtubes subscription service. Says it is off to a good start. This is all about how they are building out their portfolio of tools for users as well as content creators. A little bit circular. Company does well with youtube, google buys it. I get it. Thank you. Julia boorstin with the latest there. Samsung permanently stopping production of galaxy note 7 phones. Former apple ceo discusses whether samsung can recover and whether rivals like apple and google can profit. Is a merger inevitable. Mario gabelli weighs in right here on closing bell. Youre watching cnbc. Hey nicole. Hey i just wanted to thank your support team for walking me through my First Options trade. We only do it for everyone gary. Well, i feel pretty smart. Well, were all about educating people on options strategies. Well, dont worry, i wont let this accomplishment go to my head. Im still the same old gary. Wait, you forgot your french dictionary. Oh, mucho gracias. Get help on options trading with thinkorswim, only at td ameritrade. Its not just a car. Its your daily retreat. Go ahead, spoil yourself. The es and es hybrid. This is the pursuit of perfection. The nasdaq was the biggest loser selling off by a percent and a half. There are a lot more losers today. Really led today by health care and here at the nasdaq specifically by bio tech. The nasdaq bio tech index having the worst daily decline since following the brexit vote ending the day at a one month low just above the moving average. We will see if it can bounce off of that tomorrow. The big losers today included illumina and you also had big names like gillead hitting a 52week low. Apple and costco the only two that were positive on the day. Twitter getting a bit of a reprieve on thoughts that maybe something could still come together at least bouncing off of lows and we are also seeing jet blue flying higher bucking the trend. It was hard to find green today. Thats for sure. Thank you. We have a market flash. Dominic chu, what is happening. . Cyber Security Firm those shares down 18 in the after hours. Heavy volume about 134,000 shares changed hands in the after hours. The company is preannouncing Third Quarter financial results. It goes on to say it is now seeing total billings for the Third Quarter between 343 to 348 million. They previously expected 372 to 376 million worth. They cut Third Quarter revenue views down from a prior 319 and their Third Quarter earnings cut to around 15 sents to 16 cents per share. I will say there is a bit of slightly positive news. The company adds to existing stock repurchase program. 163,000 shares. The firm does say it will give full earnings announcements on october 27. That is the reason why shares are down as big as they are right now. Thank you. Dominic chu. It was supposed to be samsungs most advanced smart phone reports of fires have forced something to completely stop producing the phone. Chinese consumers are fuming. Here is what samsung did in chine china. It didnt include china in the initial recall even though some of them were exploding. Samsung suggested two reports were faked. Faced with more complaints samsung reiterated that phones sold there were safe because they used different batteries. Finally, just today the Chinese Government that oversees Consumer Product safety recalled all note 7s and samsung posted an apology. Excerpt of it there. For many chinese consumers this is far too little too late. Samsung is being slammed in china everywhere from social media plat forps to state broadcaster who called it arigation. Those are harsh words in a critical market for samsung. China is the Worlds Largest smart phone market and samsung was once number one there. Last year it was pushed out of the top five by local brands. So the galaxy note 7 debacle is not likely to help them win back any customers unfortunately. Thank you. Lets talk more about samsungs phone problems with john sculley. Welcome back. Thank you. So in this case it seems like samsung can hardly get enfront of this problem. It has become too big and scrambled too much and potentially cost them a reputational blow. What do you think can be done to try to stem the damage . I think its a very serious problem and maybe more serious than people have reflected in the market. Here is why. This is the first phone that samsung has introduced that doesnt have a removable battery. It is built into the phone itself. Thats because they want to make the phone as thin as possible. So a little bit of physics. The way a lithium ion battery works is that it stores electricity. The charge particles flow from the lithium which is positive to the ion which is negative. As you squeeze together those two materials in order to fit them into a thinner and thinner phone it builds up heat and that heat can cause fire. Thats a real problem. So the question is it is a material science problem . I dont think so. Is it a design problem . Possibly. But samsung is one of the best component designers in the world. My guess is its a production problem and that they made a production era. The challenge is you cant quickly go back and fix those things. You have to redesign for manufacturing if that is the problem. If it is a true design problem it will take longer. If is a material science problem it is bigger. This is not a quick fix problem for samsung. This is dan any hughes. Im curious to know about the production problem. How long would it take a company to fix such a major issue such as this when it is deeply embedded in everything that they do . What do you estimate in terms of how to turn it around in terms of timing . I can only speculate. I would say this is hard to solve. As i was saying as you take these two different electrodes the lithium and the ion and squeeze them tighter together which they want to do because they want to store more Battery Power in the phone at the same time they want to make the phones thinner. So from a design standpoint this is tricky. Now you go into production of this. Lets say they did make a mistake with the production which i speculate they have, thats not a quick fix particularly at the scale at which samsung works and doing it in many factories across the world. This could take many months to correct. If it takes many months essentially does it halt this entire line of design for these phones . I guess from a corporate leadership point of view what do you think samsung has to do tell people to sit out a cycle and get this right and then try to get loyalty of customers back . We can only speculate. I can tell you that samsung is one of the worlds best designers of components. Its not that they dont understand material science and design. Something went wrong. My guess is it is a production error in manufacturing. To fix that may require a change in design or may require a change in the production process itself and that can be fixed quicker. Anyway you look at it this is something that is going to have to be dealt with i think for quite some time before they get a true fix on a global scale. Thank you so much. Giving us a deeper look at what is going on. John sculley. Yum brands the first fad food chain to enter china back in 1987. The owner of kfc, pizza hut and taco bell is getting ready to spin off the volatile China Business. And later billionaire investor Mario Gabelli. Yum brands, owner of kfc, taco bell and pizza hut is trying to sell investors and analysts on upcoming spin off of business. Susan has the details. Investors seem to like what they heard today judging by stock price share price finished higher in a down market as the company outlined strategy for the spin off to take place on october 31. The listing will happen on november 1. Yum brands as you mentioned was the First Western restaurant to enter china in 1987 with first store front opening. Fast forward 29 years and yum still has majority market share in china. That majority in the market share continues to shrink each and every year and sales are volatile. You saw that with earnings reports. They are saying this goes back to boycotts and protests. Today we spoke to yum chinas ceo who basically assured us that this is only temporary and that china is still a key Growth Opportunity for many reasons. Millennials in china are like anywhere else in the world. There is absolutely no more dynamic economy in china. No group of people are more digitally savvy. It is time to offer the opportunity to live mas. We did see the stock rally higher on the back of the announcement that they were going to double capital returns to 13. 5 billion over the next three years. Baic to you. Thank you. I wonder if this is the right time. People are getting more wary about china. I do think it is spin off 101 in terms of rationale. Yum brands i think at times became for better or worse a china play even though they have massive operations here and elsewhere. The question is has the stock outperformed mcdonalds because people are interested in getting the China Business . I do think domestic spending china plays are in demand. The question is whether the stock will perform as expected. Time for cnbc news update. Here is what is happening at this hour. Hillary clinton holds a 9 point lead over donald trump among likely voters. That is according to the latest nbc news wall street journal poll taken after sundays debate. In a twoway matchup clinton hold as ten point lead over trump. Air strikes on rebel held parts of aleppo killing at least 16 people today. Amateur video uploaded shows streets reduced to rubble and water flowing from broken pipes. Researchers say older adults who have history of becoming light headed could be at risk for developing long term dementia. The study followed adults who experienced low blood pressure. President obama says the United States will take the giant leap to mars sending humans to the planet and back by the 2030s. He announced that the government is working with commercial partners to build new habitats to sustain and transport on Long Duration missions in deep space. Thats the cnbc news update. I know bill would want to do it. Me, no way. Im wondering if president obama would do it. He might. You never know. You just never know. Im too chicken. Ill stay here with the real chickens. He is a huge investor in cbs and via com. Does Mario Gabelli agree with the plan to merge companies . He joins us exclusively right after this. Will your business be ready when growth presents itself . American express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. Find out how American Express cards and services can help prepare you for growth at open. Com. I am a First Responder tor and iemergencies 24 hours a day, everyday of the year. My children and my family are on my mind when im working all the time. My neighbors are here, my friends and family live here, so its important for me to respond as quickly as possible and get the power back on. Its an amazing feeling turning those lights back on. Be informed about outages in your area. Sign up for outage alerts at pge. Com outagealerts. Together, were building a better california. Welcome back. Recap of the day on wall street. The dow dropped 200 points on the nose down 1 . The s p down 26. It was down 1. 25 . The nasdaq down 1. 5 or 81 points. Only apple was green on the dow. Cbs ceo reportedly planning to seek autonomy of the red stone family. Capitalizing on his track record at the helm of cbs for more on this ongoing story we are joined by prominent shareholder of both kaechs, Mario Gabelli. Great to be on the floor with you. Before we get in can i ask you about the market . We have the sell off and elections looming. The dollar strong. Do you have a sense for what may be happening here . Every day is a new day. Lets look over the next. Whoever is elected you know you will have Infrastructure Spending whether bridges and we find companies have benefitted from that. 40 of 500,000 bridges are in trouble. Roads, airports and water infrastructure. So we look for Companies Like that. We have already done that going back to december of 2015. Fix America Transportation you found crate companies in chattanooga. You find a lot of companies. Then the military. What happened again today shooting missiles at american ships. Both sides have to put money back in. Which Companies Benefit . We have a handful of those. The u. S. Is in fantastic shape except for the students with the debt. We have to solve that problem. You have issues with regards to tax rates, issues with regards to regulations. Well figure that out and do a great job. Looking out over innext five years if you buy an index you make 5 to 7 . The problem short term is earnings that were announced by the canary in the coal mine, honeywell, dover yesterday. Today illumina. Then Interest Rates wrmpt do we go next . There is a certain amount of uncertainty there. Companies worry about how much odo we have to pay for health care . Do we want to add the extra individual and do we want to put money into cap x. We want to go broadband and help communities but there is hesitancy. Sounds like we can steer the ship through some of these rough waters. The present value of future earnings the market is adjusting and will always adjust. Lets go to super micro. Via com, cbs . When dom duly resigned and we asked the simple question and that is did you hire an executive search firm it seems like that was the path it would go to try to put together with some function. There was ten years ago on december 31, 2015 there was 764 million shares of cbs and via com. Fast forward 444 million shares of cbs. They shrunk cap. Debt has gone. Cbs has doubled. So go back further in 1985198630 years ago Warren Buffett went and said to tom murphy you have my vote for ten years. Run this company. So sherry has to come to understand that if she wants less and assuming this is an element why not five years . To give him five years to say go ahead. I have gotten to this point. It is a public company. As a result you have independent directors and are pretty smart and good. They will put a bunch of independent directors together. National amusement says 3. 5 billion and you have to bow a charity for less. From my clients point of view they will have an issue because control shareholder whatever the terms are there will have to be a vote. Whether the wisdom of the deal or not what about the Media Business in general . You go back to 85 and ten years ago do we have to worry about the underlying . Absolutely. You dont worry about kbchblth it was 2,000 years ago gladiators were fighting. Content and distribution, creativity. Figure out what the consumer wants, how they want to receive it and do it at a low cost and get paid for it. Nothing has changed. There is a lot at stake for companies as to who is providing that, what the consumer wants to watch. With respect to via com they were missing things that need to be able to pivot and they just crunch down and did nothing. That is great. This is the free market system and that is why there is a change. The other question is is this a loaded laggard. Could cbs go to 80 a share . Will they give a contingent value right to the shareholders . Cbs is a loaded laggard. A wonderful opportunity in the sense of distribution. Paramount has great distribution. They lose a little bit on the original. Yes. Will you stay right there . We want to talk more. We are in the Media Business. Thank you, sir. Much more coming up right after this. We will ask him for his take on how netflix and twitter might fit into what we are discussing. We are also going to look at top concern for Small Businesses this election cycle. You are watching cnbc, first in Business World wide. Were dro. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Shares of netflix were lowered. There is speculation about whether the streaming service would be a takeover target. Deutsche saying it is skeptical netflix will be acquired. Back with us is Mario Gabelli. What do you think . Is netflix a takeover target here . A lot of Companies Want to make love they will figure it out. A lot of deals, financial engineering. Alcoa talking about a split. I have no interest we have limited interest in net pliks. We know the math. We know the numbers. On the other side we are focussed on another pairing of two other companies because we do have a we have a half a billion dollars. You own netflix. Because it is real time hands on watching the numbers of subscriber acquisition cost being low. What are they going to do to back into content . The walking dead, so thats the issue that we have. You have to keep an eye on him. All of the companies. Today we had a little love fest on twitter. Will somebody step up . Will alphabet step up and add it . What is the fundamentals of the company . Are they cash flow positive . They have 2. 1 billion of cash. If they have a burn rate they have enough money to go through the next cycle. Independent of that in 1960 kennedy got up and used different type of media, tv and then you had radio in the 30s. Would you like twitter here . Fundamentally it is okay. If they are an independent company . We are looking at it now. It is getting more interesting because of the dynamics of change of the usage of it. From my point of view what i like today is real live entertainment. Live nation, singing, concerts. People want to go in real time. They dont want to tweet it and watch it on an ipad. They want to be there and feel it. The boss singing. Beyonce. The whole thing. Baseball. You can buy a piece of a baseball team. The atlanta braves. Very interesting. Narrow Scale Companies in a way in terms is that where we are at . Real time performance . If i had a Football Team 30 years ago. I did okay if i had a Football Team. Think about the globalization of soccer. Man u. What is going to happen in china with 1. 5 billion set of feet. How much are they going to pay . Cricket in india. I think the notion of sports and entertainment in real time continues to thrive and do well. Isnt it just not just real timeness. It is two way conversation. You couldnt watch the debates the other night without being on twitter, in my opinion. When you are standing online at hertz and you are upset because this that or the other thing happened you will not complain to the manager you will tweet. The division in the future is going on in europe. Will that guy hit a walk off home run . You can bet on that. It is not yet legal here but happening around the world. Will you go into overtime . Will the guy make the putt . Egaming and e sports, phenomenal over the next ten years. Are you watching this stuff . Are you watching people play video games . Yo dont watch you and you are not playing games. We are live entertainers. We love to turn it on. It is what it is. Anything further from your core competency that you are excited about in the market . From my point of view the notion that we have 50 years of knowledge we have 40th annual conference the notion of driverless car is intriguing. The whole notion that there are 1. 2 billion cars. Who do you liken that general idea . We like brim bow. They make brakes and calibers for luxury cars like the ones that you drive. Then we have companies that are involved in the systems of selling parts like modine. 11 stock. My analyst doesnt like it as much but i like it. I dont like the statistics. I dont like what is happening on the roadways. Everyone on the year. I guess the way there is a Company Called co part that salvage cars. You always have a trade. Come on, theres always a trade. Always a trade. Hit an all come down sharply for cattle today, that benefits the consumers. So lets hoof it. Thank you for hoofing it with us. Tlited to come down to this part of the world. Both gop president ial hopeful donald trump and his democratic rival, Hillary Clinton, are trying to appeal to business owners. Up next, well tell you one of the biggest issues for Small Business and main street this election cycle. Across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, Creative Business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. Let us help grow your companys tomorrow today at business. Ny. Gov make sure its ano make a intelligent one. The highly advanced audi a4, with available virtual cockpit. Welcome back. We are four weeks away from the president ial election. Since neither Hillary Clinton or donald trump have laid out concrete plans for Small Business, both partisan and nonpartisan groups are sounding off. We find out what matters most to them. Kate . Reporter hey, kelly, thats right. This week i achatted with sherry would bein, owner of st. Joseph equipment in lacrosse, wisconsin. She pays between 14 and 15 an hour but fears an increase in the federal floor will put pressure on her business. Living here in western wisconsin in the midwest, our costs of living is much lower. Housing is lower, education is lower, gas is lower. Child care is lower. Education, all these things are lower. So were not on par with the different coasts we have both on the west ask east. We are middle america. Meanwhile, in boulder, colorado, judy disagrees. She says paying workers 12 an hour is good for her business. She says its even reducing her turnover. We had employees who were a lot more productive. And our turnover pretty much disappeared. And at the end of a year, we looked back at our per bottle labor cost, and we found that it had actually gone down. Whats clear, no matter which side youre on, this issue matters to main street. Data from paychecks finds 47 of Small Businesses ranked a wage hike as important or very important to them this election cycle. That same poll also found donald trump leading Hillary Clinton among Small Business owner, 51 to 25 . The rest, kelly, are undecided. Back over to you. And why was that woman saying her costs had gone down . That was interesting. Her cost per water bottle, because she is reducing turnover, her employees are actually working harder, calling out sick less, able to afford child care when they need it. She said they actually went down which was interesting and encouraging to hear. Happy employees, lower costs. Its like thank you, kate. The nfls viewership is dropping. So the league is drastically changing its social media strategy. Will it be enough to drive fans from the small screen of their phones back to their tv screens . Thats right after this. Romantic moments can happen spontaneously, so why pause to take a pill . Or stop to find a bathroom . Cialis for daily use, is the only daily tablet approved to treat erectile dysfunction so you can be Ready Anytime the moment is right. Plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. 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, or adempas for pulmonary hypertension, 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 longterm 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 symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use. Many men arent aware their Health Insurance may cover cialis. Contact your health plan for the latest information. Welcome back. Football fans are now going to have to wait to share game highlights. Viewership is down about 14 so far this season. And the nfl is changing its social media policy to drive people away from their phones, back to their tvs to watch the big game. The teams will be restricted from going live on apps like facebook or periscope during or after the game and have to wait a full hour to post highlights in video form oh. Violations come with steep fines. 25 grand for the first one. 50,000 for the next. 100,000 for a third. Is this is this specific reaction to the fact that ratings are lower . I think the nfl always wants to have tight control over its product, over how its content is used. Yes, they dont want the teams going out and competing with the broadcast that they basically made a lot of money off. But english i think the nfl used these teams and the teams dont like it. Thats what they try to enforce. Thats right. They own that product, dont want it out there without their purview, and i think its, frankly, very shortsighted. Because they could really think about this in a much different way. And make a whole lot more off of what these guys are doing on periscope, on twitter, on facebook. And rather than rather than thinking very is there a way they could make money . I agree with you. It seems like, listen, if there is a bunch of millennials watching this through social media, that is fundamentally good for the teams. They want access sell it as opposed to have all the teams does it have to be one or the other . Can you argue the grand value is enhanced if this stuff is out there, if youre not getting the Monetary Exchange . Some teams trying to argue exactly that. Of and perhaps not the success were seeing. If they have the policy, they have to enforce it. And that is the policy. Well see if they change or bend. For now, tom brady trying to ride to the rescue. Thank you for joining us. Whats your name, michael . Santoli. Fast money begins now. Fast money starts right now live from the Nasdaq Market site overlooking new york citys times square, im melissa lee. Pete najarian, guy adami. Forget oil. A top technician says he found the most important trend in the market and could mean good news for one group of stocks. Hes here to explain. Plus, apple bucking the trend today as samsung pulse its galaxy note from the shelves for good. And later, well tell you the one retailer that could be pinning its hopes on a Hillary Clinton presidency. But first, we start with the worst day for stocks in a