Transcripts For CNBC Closing Bell 20161031

October has been a great month for meals. One of the most interesting is being called a partnership between ge and baker hughes. We have details and insight into why shares are lower on the day. Look at that down more than 7 . Both are lowered with the dow down 20 points. The latest developments on the new clinton email investigation. After the bell we are joined by libertarian Vice President ial candidate bill weld to talk about the impact on the election. Shares of tesla and solar city. We have a closer look at why investors do not seem to like this announcement again. A lot of skepticism about the proposed merger between the companies. A big announcement tomorrow, as well. On this merger. We have more details. Lets begin with how this month is finishing up. Nice costume today. I try to keep the colors coordinated. This is supposed to be a big volatile month. Markets to the down side. S p down about 1. 7 for the month. Worst monthly showing since going back to january. The russell 2000 even worse. Interest rates a real problem. Take a look at sectors. Good thing the banks had terrific earnings because that saved us from going further south. Consumer discretionary, retailers had a terrible month. Health care all the more down across the board. And anything Interest Rate sensitive got hit as yields moved to the upside. Look at health care. Drug distributors down 16 . Talk of competitive drug pricing killed all of them. Bio tech down. Big pharma down all on concerns about regulation and drug pricing. How about sell in may go away. This is the end of the sixmonth period. The s p 500 is up 3 from may through october. Best sixmonth period coming up november through april. Tough month for the euro down about 2 . That can be a bit of an issue. Back to you. Don really showed up. And a lot of it has to do with the Federal Reserve and the rising probability that they raise Interest Rates in december. I guess the question is how much of that is priced in and how much are Companies Already planning for it when it comes to this earnings turn around we have seen. The only thing that has been a true market mover, true volatility mover has been Federal Reserve. Not the elections and not brexit. The perception that the fed might muchb ove at any point. I still think that the markets will have problems once we do it. And i think the chances are very high that they will go ahead. Im in the same camp as everybody else thinking they will raise in december. We went months wondering when if ever the election might have an impact on the markets. We saw that with bio techs and others on the fear of price caps and things. But the market is still positioned at least at this moment for clinton win house stays republican. If that changes notably in the next few days or next week or so i think you will see a lot more than that. Anything drug related got hit very badly this month by concerns about heavy regulation and competition. Very good. Thanks, bob. See you a little bit later. Huge volume of mergers and acquisitions. The latest deal announced General Electric combining oil and gas business with baker hughes. Morgan brennan has been following that story all day. So baker hughes, a ge company to combine the Worlds Largest Oil Equipment mafrer to create a company with 32 billion in revenue. Ge will own the majority and raising 7. 4 billion to pay out a onetime special dividend of 7. 50 to baker hughes shareholders who own the other percent. Ges oil and gas chief will leave the company and he and other executives saying this deal is not just about scale but scope, as well. We are introducing a concept going across the value chain and then also providing productivity by usage of big data. So the confidence is there. And the teams, the cultural fit between the teams is already there. We have taken a look at those already. Talking about the value of those synergies it is estimated 14 billion is the new company doing one stop Services Shop for everything from fracking to power generation. Analysts say not only does it create a formidable competitor which had tried to buy baker hughes but it leverages ges internet of Things Software and comes at a time when the Broader Industries in the race to the bottom in terms of pricing. This deal is expected to close mid 2017. General electric turning marginally lower. Baker hughes down whopping 7 after the stock opens today up 5 . So big swing there and that is one part for that, one reason for that is because this is not an overall takeover of that company which is what a lot of shareholders and investors were looking for. There is also this question as to where we are in the cycle. Pr talked about how now is the right time to expect a slow recovery in terms of the price of oil. What a mega merger like this partnership is says about where we are. The industry has been crushed. And im glad you brought that up because one thing they said is this transaction is priced with the assumption that crude oil will stay at 45 to 60 a barrel through 2019. They are not particularly bullish on the price of crude over the next couple of years. That being said, a number of analysts have said this could be a sign of the bottom in terms of what we have seen with oil down turn and this is likely to strike a larger flurry within the Oil Field Services face. One is folks that have assets there and a lot of companies that have been hard hit because we have seen this race to the bottom in terms of pricing. The expectations we see a lot more grappling for scale and as ge called it, scope, in terms of what they can do for producers and infrastructure companies, et cetera. Thanks, morgan. See you later. Morgan brennan on that story. Lets get to the Closing Bell Exchange for the last day of october. Heading into november. David elson is with us. Peter costa of empire executions and look at the smile on Rick Santellis face. That was a close one last night but pulled off. When i get back here i find the yield on ten euroiure is up that is going to continue until your next vacation. Really the money is flowing in in certain areas. I think i had said that i think the financials going into the end of the year will be the strongest sector out of all of them. I am hurt by the Health Care Sector not doing as well this month. I do think that there will be a bottom shortly and i think that would be a time to get busy and buy more of those health care stocks. Everyone is waiting on the jobs report and on the fed tomorrow and the election next week. Its kind of like a lot of people were saying on the sidelines so you are not going to see Major Movement unless there is major news. Two things are happening. The s p is flat to barely positive. Oil dropping 4 just breaking below 47 a barrel and the vix, the volatility index for protection against swings has shot up here today. Are you surprised to see the resilience in the market . Not really. I think the earnings that we have seen so far out of financials and other names have been pretty good. Companies are making money. They are hiring. So i think the economy looks pretty good and so that generally holds stocks. I dont think the other things that are changing are changing that much. The oil is up. Its not changing at the pump that much. If it is it is 5 or 10 cents. The earnings have been pretty good across the board that we have seen and i think that is holding the market up. Of course, in new jersey price of gasoline is going up 23 cents a gallon tomorrow. The new tax goes into effect on november 1. Its rar lot. The week before an election they raise taxes like that. That is amazing. Is the Market Pricing in a fed rate increase this time around finally again . I would think it is. And i think there is a lot of ways you can attack that. We can look at fed fund futures. I think more interesting relationship is we know the relationship between easy money policies, stock buybacks of which they have slowed dramatically and what is going on relative to stocks. We know october wasnt a great month. Look at this. Ten year boom yields up 28 basis points. Ten year bond yields up 24 basis points for october. Two year up nine basis points. The dollar index was up three full cents. All that in a month that is not very good for stocks. So whether it is the fed or the lack of run way for Central Banks the dynamics are a little bit spooky on this halloween because there is one thing we were always able to hang our hat on and that was when the equity markets get messy the fixed income market usually obliges by making rates lower. That is not the case this time. That figures in about how the relationship moving forward will be impacted. Its a good point. There is a fed meeting this week. Traders arent expecting action so close to the election. December is where the rate hike odds go about 70 . What about the question that rick poses about the relationship between stocks and bonds, yields near five month highs. What does that mean for stocks . I think it should mean that the stock should come back in a little bit. This is not that kind of market. I think its been an earnings driven market which is the way it should be. We will continue with that. I think earnings season is almost over. The fed is not going to say anything on wednesday and the jobs report i dont think will come out. I dont think we will see surprise at all. If it is weaker there could be a case to be made for not doing anything in december but i mean the chances are very slim that the fed is not going to act in december. I personally have said it from the beginning of the year i dont this can they should do anything this year. Like i have said before there is a lot of smart people in that room and they look at a lot of different models and the models are telling them that december is when it is going to happen. You and Rick Santelli should have lunch sometime. I want to know what room he is talking about. Dave, before we go, would you buy financials here if you think the fed will raise rates . I think so. I think the rates go up, the revenues go up. This is an industry that has been struggling with the pricing being controlled by the fed. Imagine if apple is pricing the iphone determined by the fed. So rates up. The question will be how much of an impact it has on the rest of the economy. Earnings and financials will be up next year if rates muchb up in december. You are not worried about Political Risk of potential clinton victory whether Elizabeth Warren and Bernie Sanders get more power . A lot of people see that as a risk for the sector. I think depends how big you are. I think the bulk of the industry is they want tobe there. The regulations are favoring the depositories which is what i own, the funds we run. Im not that concerned about it. I think the industry is doing well. A rate rise will expand margins and earnings. If the stocks follow earnings well be okay. I feel pretty good about next year. Thanks guys. Appreciate it. See you later. Have a good rest of the day. We are heading to the close about 46 minutes left. Another narrowly traded day. The dow is down six points. As you see the s p and nasdaq are fractionally higher. Up next we will tell you about the latest developments in the fbis probe of newly discovered Clinton Emails and discuss what happens next in the investigation and how it could effect the election. Coming up, teslas elon musk unveiling new solar roof shingles three weeks before the proposed merger. Phil lebeau looks at the high stakes for musk and for those companies coming up. As a supervisor at pg e, its my job to protect public safety, keeping the power lines clear, while also protecting the environment. The Natural World is a beautiful thing, the work that we do helps us protect it. Public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. We want to keep the power on for our customers. We want to keep our community safe. This is our community, this is where we live. We need to make sure that we have a beautiful place for our children to live. Together, were building a better california. Check out a few moovs on wall street. Loews Corporation One of the biggest gainers in the s p reporting better than expected Quarterly Earnings thanks in part to declining expenses. Company owns insurer cna financial, Boardwalk Pipeline Partners and loews hotels. Nike is hitting a 52week low. Bank of america downgraded and cut price target to 46 a share from 55. It is trading at 50 right now. Expecting revenue to remain under pressure through next year due to intensifying competition to which sara says. The stock is down almost 20 so far this year. The bank of america note is particularly critical of nike saying they are facing an innovation gap, havent released Major Products and said they are not going to continue to gain market share into 2017 especially when there is so much competition from underarmer and adidas. Underarmer down double digits. They lost the Sporting Goods store that went out of business. That was part of it. Sports authority. Adidas is resurging in the u. S. It has been popular bringing back old school stan smiths. The question is how much is baked into the stock price for nike which is a company i cover. They seem to still be growing in places like china where other companies are suffering. Speaking of growing in china be sure to catch yum brands ceo greg creed and mickey pant tomorrow morning. That is squawk on the street starting at 9 00 a. M. Eastern time. They are preparing to split. Raise your hand if you remember who stan smith is. I know the shoes. He is now just a shoe. Used to be a great tennis player. I wonder if he gets royalties from the shoe. I hope so. New revelations in the fbis probe of Hillary Clintons private email server. Eamon javers has the latest. Here is context in terms of james comeys thinking. A former fbi official tells cnbc that james comey argued that it was too close to the election day to name russia as meddling and comey insured the fbis name was not on the document that the u. S. Government put out. The official said some government insiders are perplexed as to why comey would have election timing concerns with the russian disclosure but not apparently with the Hillary Clinton email disclosure made on friday. In the end the department of Homeland Security and office of director of National Intelligence issued the statement saying the u. S. Intelligence community is confident that the russian government directed the recent compromises of emails from u. S. Persons and institutions including from u. S. Political organizations. These thefts and disclosures are intended to interfere with the u. S. Election process. An fbi spokesperson declined to comment when asked about the Decision Making. Over at the white house i can tell you also they are not commenting, as well. Josh earnest taking no stance at all in all of this. Ill neither defend nor criticize what director comey has decided to communicate to the public about this investigation. What i will say is that the department of justice in our democracy is given expansive authority to conduct investigations. The president believes there are a set of significant institutional responsibilities that officials at the department of justice and fbi must fulfill. Interesting to learn about comeys Decision Making on the russian issue and later on the email issue im told that comey agreed with the conclusion that the u. S. Intelligence community had come to that it was a foreign power that was trying to manipulate the u. S. Election but didnt want the fbi to be part of the statement because they thought it was too close to the election at the time that they did that back on october 7. Thank you. Well see you later. Lets talk more about the new emails and the impact on the election. Joining us matt miller, former director of the office of Public Affairs for the department of justice and david riffkin. Matt, you have been very critical of comeys move to do this. Now that we have had a few days to digest it what do you think will be the ultimate damage in. I dont know that we know the outcome. The fact that we discussing that is one of the problems. The reason the fbi and department of justice have rules against taking action so close to the election is because they dont want to become a political football. They dont want to have people asking questions. Did this move help this candidate or hurt this candidate . I was stunned to hear this report that director comey objected to signing on that russia was interfering in the election. It is a point of russian state actors. If he thought that was too controversial to do before the election it is hard to understand why he thought naming Hillary Clinton in this new investigation letter to congress was somehow acceptable. David, dont you think that director comey was sort of between a rock and a hard place . He learned about this on thursday. If he didnt say anything wouldnt we criticize if we found out that he knew about the new emails . Agreed. The other argument is you have to look at the totality. In july 5 director comey unprecedented action gave a press conference while we was critical of secretary clinton gave her a clean bill of health as far as possibility of bringing criminal charges. In the process of defending that decision which is important to maintain credibility of department of justice he testified to congress. He was literally in no position to take any other course of action. Its amazing to me you have partisans on one side who harshly criticize him for giving a boost to blend this campaign and completely decouple that from his decision here now. The only reason he did what he has done, he must have concluded that while we dont have all the information something very significant has happened regarding the new body of emails. He would not have done what he has done if it was minor. In respect to my colleague there is no rule. There is guidance. Guidance means that you are supposed to exercise your best judgment. No rule. There is no statute. How about what harry reid invok invoked. Should not be engaged in Political Activities but not that you should not engage in official functions because it may have political consequences. Otherwise no Government Official can do anything because in our democracy every budget decision and Law Enforcement decision has political consequences. Do you agree with that . If it does what are the consequences of that . I agree that it doesnt violate the hatch act. As directive from attorney general issued that restated policy going back years and years and years. I agree to some extent that he would have been criticized no matter what he did. Thats part of being the director of the fbi. Sometimes you will be criticized for tough calls. When the outcome is in doubt the best thing to do is stick to the rules and follow the rules. If people criticize you so be it at least you say you followed the rules instead of inserting yourself into the middle of an election. Its not a question of defending himself. It is a question of asking and answering the tough questions. What is a more damaging to credibility of our political system . This type of a carefully worded letter or no letter and a leak probably as early as today coupled with other sorts of speculations . It is that question he had to answer. I think the problem is he letter wasnt carefully worded. Some speculation about how he might have found Something Big we dont know that. Some reporting is that these emails might be duplicates and might not come from secretary clinton. He created this situation where the fbi is a political football and political opponents are able to make all kinds of charges based not in fact and she is stuck in a place where she is not in a position to confirm. No one knows the underlying issue. The future will show. Do you think director comey knows more than letting on . Absolutely. Fbi spent several weeks scrubbing the meta data. They have enough to know by now it is not duplicates. I believe the future will prove that to be incorrect. We have seven days to go. Good to see you both. Thank you for joining us. Libertarian Vice President ial candidate william weld will be speaking in the next hour of the program. He will weigh in on the clinton email scandal and whether this could help his ticket coming up next hour here. We have a little more than half hour to go before the closing bell. The dow down about seven points. S p up almost two and nasdaq up four. That doesnt tell the story. You have some sectors like utilities very strong and energy under pressure. Coming up, two Retail Investors sounding off on the election and whether they see it as a buying opportunity. Also up next elon musk unveiling a new product that he calls the future of solar three weeks before a key vote on a proposed merger of tesla and solar city. Phil lebeau has details on that coming up. Is happening before our eyes. Shift in Human History sixty to seventy Million People are moving to cities every year. At pgim we help investors see the implications of long term megatrends like the prime time of urban expansion, pinpointing opportunities to capture alpha in real estate, infrastructure and emerging markets. Partner with pgim the Global Investment management businesses of prudential. Netsuite says oracle needs to raise offer to 133 a share from 109. That is the price. T row price says it will not take part in any offer unless oracle raises its offer for next week to 133. Resistance could pressure oracle chairman Larry Ellison to consider making a new offer. Oracle ceo told kelly evans on the show last week that the companys offer is final. I want to reiterate that is our best and final offer. We will abide by what the shareholders say. If the shareholders dont want to tend to their shares we will move on to other things. Shares have climbed about 30 since july. Well see what happens. Lets send it over to meg terrell. Valiant shares declining on the report that the department of justice opened a criminal investigation into mike pearson and former cfo. This reporting into the Specialty Pharmacy a lot of focus on that relationship with the Specialty Pharmacy. The shares were down as much as 8 at one point and now have come back from those lows on the reporting that the department of justice is looking into former executives at valeant. Well work to confirm that. Thank you. We are watching shares of tesla and solar city both lower. On friday night remember elon musk unveiled a new solar product ahead of the key vote. Our phil lebeau has the story. Met with skepticism again here. Because i think a lot of people have questions about what the cost will be for the new shingles unveiled. There is no doubt that the appearance of these shingles are a big improvement over the solar panels that we have become used to seeing on homes that have solar power. The panels are not attractive. If you have solar shingles like this that can capture 98 of the rate power then there is potential to see the market there. They plan an installation starting in the middle of next year. Elon musk says the solar roof shingles store energy that can be transferred into the tesla power wall which is inside of a home. Then you can charge up your tesla vehicle all part of an approach when it comes to the vision of the future. The integrated future. You have an electric car, a power wall and a solar roof. The key is it is beautiful, affordable and seamlessly integrated. Big question is the fooblt. We will find out more about pricing. Elon musk says it will be competitive and when you factor in a number of Different Things it will be more affordable than a standard roof. Take a look at shares of tesla and solar city both trading down since august 1 bh both sides agreed to the merger, finalized it. We have the shareholders voting on november 17. We will get more information regarding the financials of solar city coming tomorrow, a big couple of weeks as we lead up to the merger vote. Is he winning over investors that were skeptical about it at all . Hard to say. Basically he has to win over the Institutional Investors more than anybody else in order for the merger to come toorg together. More than a few say you will add cost and debt as you take on solar city. That is not what tesla needs right now. The flip side is elon musk saying this is our vision for the future. If we can do the generation, the storage with the power wall and transportation with tesla over time it will pay off. Always with the big ideas. Thank you. See you later. Time for a cnbc news update. Here is what is happening. Hillary Clinton Campaigning in ohio, a Battle Ground state where she is locked in a tight race with donald trump. She visiting the cafe in cleveland to grab lunch and chat with voters. She urged everyone to get out and vote. Italy releasing footage showing cracks through the surface of the mountain. More than 15,000 people are staying in hotels and temporary accommodations after the strongest quake in 36 years struck the region already rocked by repeated tremors in the past two months. The u. S. Geological survey says Hurricane Matthew washed away 162 miles of atlantic sand dunes. The storm killed more than 30 people in the u. S. And swedish officials have announced diplomat wallenberg dead. He was credited with helping at least 20,000 to escape the holocaust by giving them swedish pass ports. That is the news update at this hour. I will send it back to you. Thank you very much. We are heading to the close with 23 minutes left. The dow is down four points capping off a month with very little volatility. In fact, the dow going into today was down 0. 9 for the month. It is also the worse month for major stocks since january. A leading tech trader tells us what he is watching into the closing bell and the last trading day of october when we come right back. We need to be ready for whatever weather may come our way. My names Scott Strenfel and im a meteorologist at pg e. We make sure that our crews as well as our customers are prepared to how weather may impact their energy. So every single day were monitoring the weather, and when storm events arise our forecast get crews out ahead of the storm to minimize any outages. During storm season we want our customers to be ready and stay safe. Learn how you can be prepared at pge. Com beprepared. Together, were building a better california. 19 minutes left with the dow down four points. Joining me on the floor kenny. We are finishing off a month of just flat trading here. Even though we have elections drama, fed drama, overseas drama. The only thing that is different about that is the political drama. Fed drama everyone knew. I think this whole latest political thing has caused some ankest. We are well below intermediate support. Its like its frozen in place. Its not sure which direction. I think the market is telling you it expects a clinton win. It is not going to rally. It is not going to start to collapse unless it gets in the next five or six days some sense that it is spinning out of control. That being said i think the market is planning on a clinton win. What do you do . Do you make a bet one way or the other . You can make a hedge bet for sure. Otherwise what i am sensing there is a lot of people sitting this one out waiting for it to be over and wait to get the u. S. Brexit event. Thanks. See you later. We have got less than 20 minutes to go before the closing bell. And the dow, s p and nasdaq around unchanged line. Up next we talk to Retail Investors about what they are most concerned about going into the end of the year and the election. Halloween has become a big business. 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With all the good years ahead, look for the experience and commitment to go the distance with you. Call now to request your free decision guide. A week to go it has been a weak month are stocks. Has is main street dealing with uncertainty . Lasted a month. We love talking to Retail Investors like you folks at home. Joining us for this months installment jackie and thomas. Welcome back. You like times like this. We were talking about narrowly traded month this has been. You wait for moments like this. When the market breaks you are either buying or selling, right . That is right. And so having cash in my portfolio is certainly not a bad thing. So i just want to be able to make those moves when the market reacts. I think it more likely will overreact. I do like to be in a position to be able to buy or sell when the time is right. Tom, what are you doing . You are up 8 this year. Outperforming the s p 500. Where are you finding winners and are you making moves this week, end of month, into election . Big winners were financials. Almost all of them were up ten plus percent since july. Capital one, goldman sachs, morgan stanley. I have been looking for value and lately i have been buying cracker barrel. Got down nearly 3. 5 around 131 and kroger which is near 52week low those are the two stocks i have been buying. Like the financials, that is a big risk we all know. If they are going to go up it is because the fed is raising rates and improves their profitability. But if they dont chances are the stocks give back the gains they had. So do you have a discipline that says it is time to sell at some point . I look at the valuation. We havent had rate rises and the stocks have done incredibly. Last time i sold citi group and that is below where i sold it. Jp morgan gets up 75 and 80 i will definitely take some off the table. Case by case. Do you think that this election will have an impact on your portfolio in the long term in the economy . For the longer term i dont think who is in office really matters that much. Initially when we find out who is going to be in office i think there will be a reaction and that will create the buying opportunity. We have been through so many president s throughout history. No matter what the market still goes back up. Sfwl i noticed you added to your position in chipotle. There was that analyst who said they have seen a 20 decline in sales since the scare. He thinks those customers are gone forever. You think they have room to grow here. Why . Absolutely. I dont this can those customers are gone forever. I know they have been highly promotional today before i came here. Me and my daughter went to chipotle. The lines are still out the door. Not only that but i look at how they performed as a business and as a Company Prior to that scare. I looked at how they reacted to it. Think about things like jack in the box and other companies that have gone through similar situations i think it will take a why. Im willing to put my money in it. I just put a new position in chipotle and i do believe that it is going to come back. Down 44 in the last 12 months. Big move. Good to see you both. Thank you. Main street investors, if you will. About ten minutes to go before the closing bell. We are looking at the dow down two points. We are off the lows of the session. S p and nasdaq stay positive last trading day of the month. Tight ranges. Looking at worse losses for stocks. Art cashin told me 300 million to sell. Not much of an impact expected on the close. Our next guest says we could see a move from dividend to Growth Stocks moving forward. She will explain why when we come back after the break. Hey listen, when you tell our friends about your job, maybe lets play up the digital part. But its a manufacturing job. Yeah, well ge is doing a lot of cool things digitally to help machines communicate, might want to at least mention that. Im building worldchanging machines. With my two hands. Does that threaten you . No dont be silly. Im just, uh, going to go to chop some wood. With that . Yeah we dont have an ax. Or a fireplace. Good to be prepared. Could you cut the bread . Welcome back. Back seven minutes left in the trading session with the dow down four points. Joining us samantha. Good to see you. Welcome back. I think we had this conversation last time. You think cyclicals, growth is going to be the place to go. You are getting out on defensive issues right now. We have stuck with that call most of the year. It has to do with where the top line growth is. We know earnings are coming out the bottom. You want to see real top line growth. It turns out that the highest Revenue Growth expected from Consumer Discretionary and health care. Which are two worse performing sectors. What gets the market back nat mood . I think it has to do with the fact that we havent seen Revenue Growth positive year over year since the end of 2014. As investors repivot to the fundamentals we think earnings are important but revenue is what you really need because we know earnings can be massaged by cost cutting and buybacks. Do you give up on dividend growers . You dont. The sweet spot is those that can grow the dividends and provide top line growth. Consumer discretionary might just fit in that bucket. So Consumer Discretionary doubled dividend yields and are expecting Revenue Growth close to 9. 5 . Health care, you are not worried about some of the political head winds, the election, the bashing of high drug prices on capitol hill and from president ial candidates . I think within health care you get growth. There is a political aspect to that sector. It is probably too early to say whether you want to make calls. So we are in wait and see mode. There is obviously a disconnect between what politicians say and what they pass. Really . That does happen. Good to see you. We will take a break and come back with sarahs favorite segment. The closing count down, bill at the board. He will include peso for the week. Well get to that one. After the bell william weld, the Libertarian Partys Vice President ial nominee will be joining us. He says he is outraged over the fbis recent announcement of potentially new information related to the Hillary Clinton email server scandal. Hell talk about the impact it can have on the election when he joins us live coming up in the next hour of closing bell. You are watching cnbc. Miles per hour. To win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. This man creates software, to protect this customer, who lives here and flies to hong kong, to visit this company that makes smart phones, used by this Vice President , this little kid, oops, and this obstetrician, who works across the street from this man, who creates software. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. 90 seconds left with the dow down seven points. Bob pisani here with me. Here is how we did for the month three major averages and the answer is not much. Narrow trading. Going into today the dow was down just 0. 9 . When all is said and done we are less than a percent down a little more than 1 for the dow and the nasdaq down a little over 2 . It wasnt that it was a bad month. We are only 3 from historic highs in the s p. There is a lot of head winds to deal with, the election, the oil, fed, everyone elected to sit. Other markets we follow. We have wti, ten year yield and the dollar index all on one chart there. A lot to keep an eye on. For the month crude was down 3 . Look at the ten year yield up 24 basis points. The dollar index up 3 . By request the dollar peso that is saras request. The election, oil and the fed. The week prior to the president ial elections the s p historically up 1. 7 8 of the last nines times. This is normally an up week. Thanks to friends at pim co. Stay tuned. Former governor bill weld running for Vice President coming up here on second hour of closing bell. Welcome to closing bell. Lets take a look at how we are finishing the day and the month on wall street. The dow going out with a decline of about 17. 8 points. That is about 0. 1 . The s p 500 hovering around that flat line all day long. Finish is lower than a full point. Nasdaq closing lower 0. 02 . This is the third month in a row for losses for u. S. Stocks and looking at the worse month since january. William weld will be our guest here at the New York Stock Exchange to discuss the race for the white house. Eight days left until the election. That is coming up. First, lets talk about this market. Joining us for the hour is Michael Santoli and also with us for more on todays action we have paul and fast money trader. Before we get to paul on what we can expect from november i think as you always do put it well in your recap of the markets. Secret internal document that i circulate. So wish you folks can read it. The question you post was if you are positioned for 80 plus chance that Hillary Clinton wins and now that moves down to 70 or so does that effect your risk positions . That is according to betting markets approximate probabilities. I would say no. That is why the broad market is not adjusting tick for tick with every perceived change in the field position of the election. I dont know if the market knows how it would trade. I think what you saw today is the market is trading pretty heavily. It has been sagging beneath the surface and idling for a while now. We have seen a bid for protection. You have the vix go up about 17. The short term vix futures predicting volatility in the next 30 days actually really saw a big spike in demand. And longer term people think it is just a passing storm. That is where you see it manifest not so much in actual selling of stocks. You are a classic and then you make sense of what the numbers mean. We have been stuck in the range for a while like the market is in shackles or frozen with indecision. What is going on here do you think . You are exactly right. This three month losing streak is the fourth smallest percentage on record for the s p 500. We have been in a zombie market pardon the halloween pun. Looking forward to what november has in store we think of it as a strong month for equities. If you look at numbers it is a trend of what has happened up to that point follows through to november. When the s p 500 is up 10 or more it averaged to gain over 2 but for all other years where it has been up less than 10 or down the average change in november has been a decline of 66 basis points with gains less than half the time. So it really depends on what the market has done so far. If we are up a little bit we expect maybe some positive tendency. The whole big bull is out of the gate now that it is november probably wont materialize. Looking at bigger moves while major averages didnt do a lot crude oil went below. We saw utilities have a nice move up. What are you watching in terms of the correlations and moves today . I think crude you have to keep your eye on because it has had a pretty good run here. We thought we might get some kind of a deal. Saudi arabia needs oil at these levels. You thought there was incentive to keep it there. It looks like it is starting to fall apart. That is slowly filtering into other markets. Look at high yield. That has kind of sold off. Remember high yield issues we had. If there is anything to watch over the next couple of days it is certainly crude oil. Thank you for that lead in because oil is having the worse day of the month today trading lower by more than 3 . We asked Courtney Reagan to tell us what dragged the price lower again today. That is exactly right. When we look at Wti Oil Price at the close which happens at 2 30 that settled at 46. 86 a barrel. We saw the steady decline almost all session. The settle ended up being a little bit off the days lows. There is a number of factors at play. The market is starting to doubt the ability to come together to follow through with this production cut. It may still happen. They are still talking and the meeting is scheduled for the end of november. There is doubt there and that is the big reason why we saw crude oil price take the step down. The strong dollar. The dollar has been very strong for some time. Plus the United States came out and said when we look at the monthly inventories for august they were up 0. 6 over july higher than what we have seen and last but not least you have a pretty weak equity market right now for all of the reasons that you have been talking about. None of that has been very supportive for the price of crude. When you look at it for one week down 7 . For the month this is the first negative month in the last three for the price of crude oil. There are a lot of factors at play and traders say there is not a lot of support here in this market right now for the price of crude and the support levels are not coming in and holding like they often do. Well wait for headlines and comments from some members as we do into that november 22 meeting. Interestingly the Energy Companies got hit hard. Chevron was the biggest percentage winner in the dow today. Chevron got some love from the Analyst Community thinking you can rotate if you want the majors. That is not really a play as much on the commodity price as it is kind of the big stable processor of products. I do think it makes sense there but a little bit of disappointment on the structure of the baker hughes ge deal. You saw people thinking it is maybe a straight takeout and will have implications. You think they come out and say we are not talking about an allout takeover . People saying this is bolting two companies together in the public market. Going to this . Paul, how about that surge in activity that we are seeing . I think it puts us at a record month in terms of deal activity. In our research what we have seen is activity tends to be coincident with the market. The talk that this must mark a top, it may mark a top but more coincidence than anything else. Getting back to your discussion of energy we would see the weakness in the Energy Sector as more of a buying opportunity. It is best performing sector yooerto date and best performing sector throughout this point in the year. Money continues to go into the winners. Under performers Like Health Care historically the worst in the first ten months of the year. Under performed in november nine out of ten times. He has it right at his finger tips. He is terrific at the cocktail reception. We have a news alert to get to on wells fargo. Sue herera as details. Wels fargo entering into a proposed settlement. If it is approved they would agree to pay 50 million to settle a racketeering lawsuit accusing the bank of overcharging hundreds of thousands of homeowners for appraisals ordered after they defaulted on mortgage. The suit will resolve nationwide claims that wells fargo charged much more than it paid the third party appraisers exploeting those according to the suit who could least afford it. If the Court Approves it is a 50 million settlement to settle a racketeering lawsuit. This has nothing to do with the 2 million fake accounts. Nothing to do with that cross selling scandal and not a very large number. Unlike a lot of other mortgagerelated settlements this is not any abuses that led up to the crisis. This is in the foreclosure part of the story. It is a little later than the other stuff and a little troubling. The banks are best performers for the month of october after months of under performance. Are you a buyer . Im a seller of the banks. I think we have had a huge run up because people think they will raise Interest Rates. Lets say they do raise Interest Rates. Lets say they raise Interest Rates then what happens after that . You think we go on a rate hiking cyc cycle . Is that what action in utilities told you today . I think so. You combine that with lower rates, with oil going lower. That will quell inflation issues out there. The banks are trouble here. You dont have to short them but you had a good run. Why not take some money to the bank . With that, there is a brand new nbc survey monkey poll out on the president ial race. John harwood has the details for us. We have been looking to see what impact that comey letter about emails on friday has on the race. Now we have fresh evidence. The nbc survey monkey tracking poll shows no change in the race last week. Clinton 46. Trump 41. Gary johnson at 7, jill stein at 3. Now the numbers out this afternoon, no change. Clinton is up one point to 47. Johnson is down one. That naut statistically significant. We see that in the interviews preand post comey letter there are no difference in the numbers. The sources of clintons lead also remains stable as this race has been stable. First of all, her lead among women is twice as big as Donald Trumps lead among men. Her lead among nonwhites, africanamericans and hispanics exceeds Donald Trumps lead among whites. Her lead among democraticize bigger than Donald Trumps lead among republicans. She has an unprecedented advantage for a democratic president ial candidate among White College graduates, a group that no democratic candidate has carried. She is up by 16 percentage points. All of that adds up to a Hillary Clinton lead right now of six percentage points. So far the fbi news has not changed that. So other polls have shown a narrowing of the lead that she has had, right . They have. And certainly even before that letter other polls were showing a narrower race. This is why you average polls. We have also seen that in some of those averages it has gotten closer. In others like the Huffington Post average and New York Times average it closely resembles what our survey monk poll shows. A lot of polls coming out from us and other news organizations. This is one source with a large sample. This has tens of thousands of respondents and that is a good barometer of direction to the race. We dont see it shifting. On the point about averaging a tweet 538 editor and chief, if comey produced a shift some polls would show no change and others show a three or four point swing. I guess you have to have Something Bigger to move the markets. I think the markets have gotten used to the pattern where one or the other candidate has a revelation and polls go against them but then it goes back to whatever equilibrium has been there before. The markets i think are wise to that. You are hearing more about the black swan type event leading up to the election and whether this was it or some other surprise. The irony is that black swan is something you have to have something about a correlation between elections and the markets here. I mean, historically democrats have been better. I think the survey monkey poll makes perfect sense. The letter didnt say there was new damning evidence. It just said there is pertinent info. Nlsh we see a black swan or big event that falls into the market i doent hug the polls will have much change. I think the reaction in the polls is rational at this point. We have to go at this point. Love your costume. Thank you. Halloween is my favorite holiday. Should abolish it. Calls himself bk. We will see the rest of the fast money crew coming up next hour. Passive investments are one of the Fastest Growing hell explain why at 5 00 p. M. Eastern time. Thank you, paul hickey for joining us today on closing bell. Could Hillary Clintons latest email problem cost her the election . Libertarian Vice President ial nominee bill weld will weigh in on the latest probe and whether he thinkathize timing is suspicious. We have a lot to talk about coming up. We will look at whether Energy Companies may have the urge to merge in the wake of the deal between ge and baker hughes announced today. Who could be next . Hey gary, whatd you got here . This bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade 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. Morgan stanley hes the drug company big shot who raised the price of a lifesaving pill by five thousand percent. Said he wished hed raised it more. Prop sixtyone targets drug company pricegouging to save lives. The drug price relief act will save californians nearly a billion dollars a year. Join the California Nurses Association and aarp and vote yes on sixtyone. The drug giants wont like it. And hell hate it. We have breaking news on viaccom. Julia boorstin, what now . Bob backish appointed acting president and ceo. This is the executive who Led International growth since 2007. He is going to be succeeding tom duly who announced he would be leaving the Company Effective november 15. This all comes as via calm tries to figure out its future. Backish was very much the expected choice here as cbs and via com are in discussion of potentially combining the two companies. Taking on the role of president and ceo of the Global Entertainment group and reestablishing the kids and family group as nickelodeon group. A couple of changes as they await news. Back over to you. Thank you very much. The door continues to revolve. Another acting ceo. To me the stocks are only reacting to the prospects of a rec recombination. We are not finished. You probably saw if you are watching the television we have breaking news on the clinton email probe. John harwood. The Justice Department sent a letter to congress and said that it is devoting all necessary resources to work with the fbi to review the emails in question as expeditiously as possible. This is consistent with what all partyvise called for and especially the Clinton Campaign which wants this matter cleared up as soon as possible before the election which is eight days away. The Justice Department indicated it is going to advance that probe and we will see how quickly they can find it out. Previous estimates have been that it couldnt possibly be done before the election. It sounds like that time table is being accelerated. Joining us now is william weld, currently the libertarian Vice President ial candidate, himself a former Deputy Attorney general. Good to see you. What do you make of the whole development here . I think there is less there than meets the eye. Director comey felt obliged. He thought he was spotted given his testimony to congress that he would keep them updated. I think he had a bad hair day when he decided to end in the letter. Dont you think he would have been faulted if he didnt spend anything . He sent the letter with no evidence. He is saying we have stuff here that may be duplicates. We havent read them. We cant read them yet. There is no probative evidence. Thats not like we found new evidence. We saw another email but we havent read it yet. That is not enough. The doj is moving fast. Doesnt this bring up questions about the relationship between Loretta Lynch on the tarmac with bill clinton . Im not sure that they can do anything that might help her. I know that they certainly wouldnt want to appear that way anyway. I think realistically you cant do an investigation of 60,000 emails in a week even if you put 150 fbi agents on it. It doesnt trouble me because there is no evidence that there was evidence there much less evidence including criminal intent. I think the chances of this turning up anything are very small. If it does find come back when it does. Dont tell us you have a laptop. A lot of talk before and after comeys letter about perceived internal tensions at the fbi. This was about leak prevention. Did that matter in terms of how this plays . We have unleashed this as a story line. Im sure there were some people who thought the department should have gone further than it did and werent happy with what director comey did in july. I reetd this stuff thoroughly and i used to do this for a living. I thought he nailed it on the head that there is no evidence of criminal intent and you really need that particularly in a case that is not moral turpitude conduct. It is a regulatory violation. What do you make of the fact that some democratic lawmakers called on comey and the fbi to release information about Donald Trumps connections with russia if there are any and business connections and that is coming up out as eamon javers reported that he was too worried to release that early october before the election . I didnt know that. The election stuff doesnt read all that well, frankly. If he did say i didnt want to release it in early october, it is late october now. Lets talk about the campaign and the election. Our colleague kelly evans sat down with Tiger Management founder Julian Robertson to get his views on the election. He told her he is supporting the libertarian ticket. I have decided to support the libertarians and bill weld is a good friend of mine. I have a lot of respect for him and faith in him. And the governor of new mexico had an excellent record whereas he may be a little more aggressive than i am on drugs. I can go along with their policies. I dont want to sound insensitive. Given the undesirables, the low ranking that both of the Democratic Republican Party candidates have, are you surprised you not doing better than you already are . I will give you a different slant. If we get over 5 which most polls have us at but 2345u9 all then the Libertarian Party gets official status and qualifies for matching funds automatically and the libertarians would have a permanent seat at the table on the National Political dialogue. I think that is a great reason to vote libertarian because the dems and the rs in washington arent getting along too well. They can use a third voice. We agree with the democrats on social policies. We agree with the republicans or what used to be republicans on fiscal conservatism and responsibility. You dont have to worry about a banana republican instability because we dont have a parliamentary system. Julian named you. I think a lot of people are wondering after Gary Johnsons gaffs when it comes to Foreign Policy why you arent on the top of the ticket. He missed a place name but i think he could be a strong chief executive of the company. He is a little bit to the left on some others on the wars. Im not sure that is a bad thing. Who do you think you are taking votes away from . I think we are taking more from trump. I am appealing openly to republicans who are civilized to leave him. You would rather do that. I would rather do that. Good to see you. Bill weld, Vice President ial candidate on the libertarian ticket. At the same time we are watching shares of disney, second worst performing stock on the dow this year. Espn subscribers has been a major catalyst. We will discuss whether this is all about cord cutting. And a little bit later we look at a handful of stocks with dizzyingly high valuations that could give vertigo a run for its money still to come on closing bell. If youre on medicare, remember, the open Enrollment Period is here. The time to choose your Medicare Coverage begins october 15th and ends december 7th. So call unitedhealthcare to enroll. In a plan that could give you the benefits and stability youre looking for, an aarp medicarecomplete plan insured through unitedhealthcare. What makes it complete . It can combine medicare parts a and b, which is your hospital and doctor coverage with part d Prescription Drug coverage, and more, all in one simple plan for a low monthly premium or in some areas, no plan premium at all. An aarp medicarecomplete plan offers you benefits like an annual physical, preventive screenings and most immunizations all for a 0 copay. 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You can even enroll right over the phone. Dont wait. Call unitedhealthcare or go online now. Of course when you think about disney you probably think about films and theme parks. It has been espns cable subscriber woes dragging this stock down this year. Now there is controversy about the accuracy of the subscriber numbers at espn. Julia boorstin is back with details. Neilsen retracted its report that showed espn had the worst month ever in october in terms of subscriber losses saying it is investigating a larger than usual change in the numbers and takes the accuracy of data very seriously and are conducting a thorough analysis to determine whether or not there is an issue with these estimates. This does raise larger questions about the accuracy of the numbers on the heels of neilsens most recent quarter missing on both the top and bottom line sending shares down 18 in just the past week since earnings. Espn is criticizing neilsen for releasing potentially inaccurate numbers saying the numbers represent a dramatic unexplainable variation over prior months reporting affecting all Cable Networks saying raised the issue with neilsen to provide subscriber data. The data does not track our internal analysis. Pivotal Research Analyst saying the reported espn numbers are in line with the low single digit percentage subscriber declines has the he has been seeing. No questions about espns health are sure to come up on disneys Earnings Call next thursday afternoon. Thank you. It just continues. It does. It shows you that obviously investors are on edge for any evidence no matter how firm or flimsy it is. What is interesting is in the way disney is treated is that after the time warner bid, if you take on face value what at t is offering to pay for time Warner Disney trades at a substantial discount. Nobody thinks somebody is going to buy disney. It shows people are concerned about the dependence on espn but also because their costs cant be adjusted downward. The sports rights are locked in. That is the problem is as subscribership comes down that is less revenue for them. They had higher content costs than netflix. In terms of total number they are paying for content and maybe down the road. That is where this ecosystem can flex. Especially if nfl ratings keep coming. Lets move on. Time for cnbc news update. Here is what is happening this hour. A bus and a tanker truck bursts into flames when collided in southern brazil killing 20 people. The truck driver and 18 passengers burned to death. One passenger died of a heart attack after that accident. Donald trump campaigning in michigan hoping to pull off an upset in a state that hasnt gone republican since 1988. He again praised fbi director james comey for his decision to Tell Congress that aides will be looking at newly found Clinton Emails. That was so bad what happened originally and it took guts for director comey to make the move that he made in light of the kind of opposition he had whether trying to protect her from criminal prosecution. Cnn has parted ways with donna brazil, the chair woman of the Democratic National committee after hacked emails revealed she provided questions in advance to Hillary Clintons campaign during democratic primary debates. She resigned on october 14. Thats the news update this hour. Back to you guys. Thank you very much. Silicon valley is solidly backing Hillary Clintons run for president. One of the best known exceptions may be peter thiel. He just laid out the case for why he backs donald trump. And we look at which Companies May be takeover targets now that ge and baker hughes are combining energy businesses. Who is next . Well talk about it on closing bell. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. Yeah. Well, we gotta hand it thto fedex. Glasses. Theyve helped make our ecommerce so easy, and now were getting all kinds of new customers. I know. Can you believe were getting orders from canada, ireland. This ones going to new zealand. New zealand . Psst. Ah, false alarm. Hey you guys are gonna scare away the deer idiots. Providing Global Access for small business. Fedex. Peter thiel sat down to talk about the president ial election and his support for republican candidate donald trump. Kate kelly joins us with high loigs of that interesting speech. It was a rare appearance from a fairly low profile entrepreneur who made the case for donald trump as one. In prepared remarks peter thiel said average americans were missing out and blamed wrong headed economic policies for part of that. The sheer size of the u. S. Trade deficit shows that something has gone badly wrong. The most developed country in the world should be exporting capital to less developed countries, instead the United States is importing more than 500 billion every year. That money flows into financial assets, distorts our economy in favor of more banking and it gives the well connected people who benefit a reason to defend the status quo. He said insiders had been making micropolicy adjustments that sparked massive bubbles including not just housing bubble but stock market bubble spurred by bill clintons policies in the 1990s. He added trumps comments on women were offensive but a trump vote was not in favor of those. They were singularly sociopathic bully. It was. My view is that other journalists, other media organizations were not remotely in the same ballpark. One striking thing is if you are middle class, upper middle class, a single digit millionaire like hulk hogan you have no access to our legal system. It costs too much. Thiel went on to say while he hasnt written other pending cases against Media Outlets he is concerned about the virtual flash mob effect created by the internet. Very interesting. I thought his economic arguments were pretty compelling. He pointed specifically to the d. C. Suburbs which were doing well and Silicon Valley and says most of america doesnt live there. The boomers are in actual bankruptcy and that the democrats are too busy spending money on wars without declaring that we are in war. It was an interesting explanation of the trump phenomenon. Im not sure whether he made the case for why people should be voting for him because of that. I was struck by how much he talked about Foreign Policy. This is something you expect economic material and media stuff. He said we are in five different wars, none of which we are winning which is rhetoric from the trump campaign. And in particular this was striking he said Hillary Clintons hawkish stance is probably most hawkish democratic talk we have seen since the vietnam war. And said no fly proposal was really risky and maybe more than someone with a temperament of donald trump having access to Nuclear Codes and if we had conflict it could escalate. So a number of points there and a range of topics. There is a lot of passion. I always think what is in it for him . I guess it would just be perhaps i dont know if he mentioned hillarys tax proposals to raise his taxes on top percentage of the country. The immediate benefit wasnt clear. We proposed a question on are you seeking government appointment in some sort of fluke of the organization our question was never submitted. He had remarks who compiled the question. We dont have an answer. He didnt comment on latest email. He stuck to the pretty high level. Always interesting to see a billionaire talk about economic disparities. When Warren Buffett does that its also striking. Especially from Silicon Valley which is so heavily backing clinton. General electric and baker hughes teaming up to create a new energy company. We will get you details of that deal and what it means for both companies and shareholders and the sector. We have more tricks and treats in store for you this halloween from stocks to valuations so high they can make investors dizzy. Behind the scenes look at business of what are you doing . Getting your quarter back. Fountains dont earn interest, david. You know i work at ally. I was being romantic. You know what i find romantic . A robust annual percentage yield thats what i find romantic. This is literally throwing your money away. I think its over there. That way . Yeah, a little further up. What year was that quarter . What year is that one . 98 thats the one. You got it nothing stops us from doing right by our customers. Ally. Do it right. Lets get out of that water. Ge combining oil and gas business with baker hughes creating a new company with over 32 billion in total revenue. We ask does this open opportunities for other deals in this space. Joining us we have analyst at stevens. I am just fascinated by the structure of this deal. This is not a takeover or merger. This is a combining of assets to own a majority interest in. Why do you think they did that . There are Core Competencies that ge is trying to protect with baker hughes given the customer relationships. Bringing baker hughes under the ge umbrella may have created customer confusion and changed the way products and services are bid. I think you are keeping the integrity of baker hughes as Oilfield Service company while combining Core Competencies of each of the enterprises. The deal has been billed as creating a somewhat unique company in terms of capabilities and Customer Reach and things like that. Do you think it means the rest of the industry will have to move in this direction and find an answer to it . I think we are in the middle of it of the consolidation that you are seeing in the Oilfield Services. You see a lot of big deals whether shell. I think the business is changing and that could be a lot to do with Lower Oil Prices that we have seen over the last couple of years. Really this is going to be the first full Stream Digital Industrial Services company that im aware of and i think that this structure is different from what we have seen so far in that with the baker ge combination you essentially have an entity that does everything in the life cycle from finding the oil, bringing it to production and then also creating the equipment that can generate electricity. You sound optimistic. Energy stocks got hit. Baker hughes was at the bottom of the pack down more than 6 . Rumors began to emerge looking for outright takeout of baker hughes maybe looking for a short term gain in the form of an all cash sort of transaction. You can be seeing some of that. Certainly the oil prices are weighing. Those are probably the reasons that i would point to. There has been concern as i talk to folks today in the potential for competition moving into baker or ges Customer Base as result of the integration and then maybe concerns longer term to hit the optimistic targets that they laid forward in cost and revenue as you look out over the next four or five years. So we got to go, but are you putting a buy on this . I really like the new baker hughes. We put a buy on it early last week when reported some very impressive cost cutting numbers. And i think when you look at the deal and you can think out beyond the next 6 to 12 months this company has the potential to transform the way the oil and Gas Services Industry operates. Do you think we will see more deals . Definitely expect more deals provided that crude at least stays in the range. If it falls out of bed you dont know what basis you are making a purchase or sale. If you stay in the range you have the companies. Good to see you. Thank you. Well, Alford Hitchcock dizzied audiences. We have stocks that can have the same effect on investors. This is halloween style. And while you wont find lilly her herman munceter on the haunted hay ride other monsteres will scare you silly. A firsthand look at how eerie attractions are making one fan of halloween. Alpha seems more elusive today. Is it because so many go after it the same way . Chasing after short term returns. Instead if getting caught up with the crowd, the Investment Managers at pgim take a long term view, teaming specialized active investing with riskmanagement rigor, to seek out global opportunities. We manage over a trillion dollars this way, attracting many of the worlds leading investors. Partner with pgim. The Global Investment management businesses of prudential investors are always looking for scary joins us with a look at earnings that give people vertigo. Multiples. Its the debate that keeps on going. Do these lofty valuations warrant a selloff . We looked at stocks with the highest price to earnings ratio. Whats interesting is the mix of companies that made the list. Starting with salesforce, the cloud player, 243 times earnings. And lionsgate entertainment, also making the list. That could change. Nicholas sees the proposed merger with stars as a catalyst to propel the stock up more than 30 in the next 12 months. Another stock in focus, netflix, trading at 340 times earnings. Investors give this highgrowth stock as a pass as it makes inroads in content development and subscriber growth. Shares up 9 this year. Cree, supplier to apple, trading at nearly 600 times earnings, and then a stock with the most vertigoinducing price to earnings ratio, newmont mining. Shares have more than doubled as gold rebounds. Price to earnings, not the only factor in play, when you take a step back. As we conduct this research, we found that price to earnings, again, one factor in focus. But Merrill Lynch pointing out other metrics that are also flashing warning signs. Sarah . Vertigoinducing stocks. Thank you, kim novak. Exactly. Seema, thanks. Of the bunch, what sticks out . Lionsgate, newmont, basically, you know, very depressed earnings. Coming off of a base. And then the hyper guys like flicks and salesforce where its about if this model works, it scales well in the future and not really about what they have already done. By the way, shares of l brands falling right now. The apparel retailer saying that Third Quarter earnings will be at the low end of its previous range. The retailer now sees its overall comp. Sales up 1 with Victoria Secret comps falling 2 . That stock suddenly down 5 here. Yeah. And bath and body works actually had a higher comp. Which made it look less bad. They have an investor day tomorrow, and seems they were getting this out ahead of that. Specialty retail, a few doing okay, a lot seeing traffic trouble. The earnings heat up. Valiant weighing in on the criminal probe involving its former ceo. Latebreaking news that sent shares lower. Meg tirrell has details. Under pressure toward the end of the trading day on this bloomberg report a criminal probe was looking into a potential accounting fraud charges for the former ceo, mike pearson and cfo, howard shiller. The stock closed down 12 , although now is rebounding in the after hours. Valiant saying that it has previously disclosed this investigation from the u. S. Attorneys office in the Southern District of new york. Putting out a statement it is fully cooperating with the authorities throughout the investigation. Theyre in frequent contact, continue to cooperate with them. They say they do not comment about rumors about investigations here, saying this is similar to reporting from the wall street journal a couple months ago. We also reached out to attorneys for pearson and shiller. Pearsons attorney declined to comment. Shiller hasnt gotten back to us. Very basic. Theyre investigating those two men, not the company, or do you know . It appears they are investigating both the company and bloomberg reporting they are also focusing on the two men. They had already talked about a criminal probe of the company itself. Now the two former cs. Meg, thank you very much. Thank you, guys. It is halloween. You know that. Ghosts and ghouls have been out at haunted attractions all across the country. All month. Coming up, the very big business of spooky sights. After this. 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. 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. This just in. 50 million customers data was not compromised this morning in a Security Breach that didnt happen. Wall street, not rattled. At all no. Sir, sir. What went right . Everything. We have a brief statement on this nonbreach. Were happy to report theres nothing to report. My dads company wasnt hacked today. Cool. One fan of halloween is cashing in on her love of all things scary to the tune of millions of dollars. Kate rogers joins us with a firsthandled look at the big business of haunted attractions. We heard you were very scared in doing this assignment, kate. I absolutely was, sarah. Melissa carbone learned scary business could be full time. I went to new york city to check it out. For some people being terrified is actually fun. Oh, my and Melissa Carbone is cashing in. Fear is americas favorite drug. Like, 100 . The founder of 1031 productions always loved halloween, but it wasnt until she began decorating her own home in los angeles years ago that it hit her. There might be a real business behind scaring people. I was like, there is something to this holiday. Reporter she and co founder, allison richards, began saving and plotting for an e ive, highscale hayride in 2008 to launch the following halloween. The company now has eight attractions from february through november in new york and california, raking in 3 million last year and securing a 2 Million Investment for mark cuban on shark tank and another undisclosed investment from live nation. The best, i feel like we have pioneered a whole new industry. Reporter and while carbone says she is basically unscarable at this point, the same cant be said for everyone. Oh, my gosh. Oh, oh [ screaming ] just took the emergency exit. So as you guys can see, im a huge wimp. I barely made it through that blackout maze. Customers are paying big bucks to be scared. Carbone will do about 5 million in ticket sales this year and her hayride businesses in new york and l. A. Account for 85 of that overall. Back over to you. And i should point out, at the risk of incurring the wrath of our executive producer, she also went to that and had to leave midway through the emergency exit. So apparently it is pretty scary. I did know that, bill. I saw the silver handle glowing in the blackout maze and i grabbed it and got the heck out of there. I was terrified. Is this for adults or kids . For mostly adults. That red clown guy really got me. I had to get out of there. All about the clowns this season. Kate, glad you made it through. Thank you. You guys into scary . You like scary stuff . Hmmm takes a lot to get me scared. Nominated to take the kids, if its going to happen. The kids have great costumes this year. Mine . Yes. We hope so. I dont want to give it away. Ill bring pictures. Im always amazed they have these traditions like a haunted hayride become big business in this country. I will say, its blasphemous, across the street in the exchange, jpmorgan headquarters, a popup halloween store. That just is wrong. Im sorry. Im not against halloween. But thats just wrong. Thats a big business. Those things get lines around the block. Sleep well tonight. My pleasure. Mike back with us. Thats it for closing bell. Fast money starts right now. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys times square, im mel lee. Traders on the desk, pn, steve grasso, dan nathan. We have a technician who says no matter wins, we will see a rally into yearend and drama at espn conflicting numbers about the health of its flagship franchise. We will tell you what it could mean for disney. And later, passive Investment One of the Fastest Growing trends in the market and a top jpmorgan strategist says it could be one of the