Transcripts For CNBC Power Lunch 20151120

Tanked the stock in disney is up almost 20 now over the past three months. We begin this hour though with those deadly attacks. This time in mali in north africa. A hostage situation in a luxury hotel in malis can tpital is n over but more than two dozen are dead. The death count in the paris attack has risen. Michelle carusocabrera is live in paris with the details on both of these developing stories. Michelle . Reporter and, tyler, belgian authorities confirm one of the dead is a belgian diplomat among the numbers you mentioned just now. This all comes after gunmen took over 170 people hostage in the early hours this morning. At this point no groups have taken credit or confirmed credit for that attack. Here in france the french are wondering to what degree what happened in mali is related to president Francois Hollande very aggressive policy in north africa when it comes to combatting jihadists. There have been french troops in the country since 2015. Mali is a former colony of france. Back here in paris it is now one week since the attacks. The death toll has risen to 130 and there are recriminations, back and forth, who is to blame, why did this happen, and we spoke with one member of parliament today, right wing member of parliament, former member of nichololas sarkozys government and he pointed a strong finger at the United States. We are paying the cost of continuous american disastrous policy in the middle east for the last 15 years. Reporter what about Foreign Policy under barack obama . Same thing, unfortunately. The hesitation, the twists and turns and the absence of leadership have created a void in the area. Im very, very angry because everybody has been very poor in conducting policy in the middle east in the last three, four years. We have have oour part of responsibility but i think were also paying the consequences on the part of the several u. S. Administrations. Reporter he was particularly critical of george w. Bush for letting iraq fall apart, letting iran have too much influence in iraq as well. He thinks there needs to be much more aggressive coordinated action amongst russia, the u. S. , iran, and france to deal with syria and to deal with the crisis thats going on in syria which he believes leads to the creation of the Islamic State or caused by the Islamic State, tyler. Michelle, thank you very much. Michelle carusocabrera for us tonight in paris. The attacks today highlighting the harsh reality once again that there is not a whole lot that businesses can do if gunmen, terrorists, show up with guns and suicide belts. But there are some steps that businesses can take to deter terrorists before they strike. Eamon javers is in washington with more. Hi, eamon. Reporter hi, tyler. Weaver been out here all day talking to shoppers as they go about their daily business and all of them, every Single Person weve talked to, have said they feel safe but they are paying a little bit more attention to their surroundings, whats going on in the area around them, and that dove tails with we obviously have lost eamons transmission there from bethesda, maryland. Well check back with him over the next few minutes and see if we can patch that back together. Lets go down right now and check on what the markets are doing. Major moves up for the dow and other indexes and lets check in with bob pisani at the floor of the new york stock exchange. Hello, tyler. Were just off the highs for the day, but its another strong day for the markets overall. I want to put up the markets this week and remind everyone at this time last week before the paris attacks we were down about 3 for the week. Right now put up the full screen here. S p 500 is up about 3 for the week. This is one of the best weeks weve had in a very, very long time. Russell 2000 up 2. 6 . Germany is up 3. 8 for the week. Even france up 2. 1 . China has also had a pretty good week. One of the reasons were doing so well today, nike had very good numbers but also ross stores had very good numbers. The discounters have had great numbers this week and that has allayed some of the fears in retail. Remember the horrible numbers we got from the department stores. The other companies are not that bad right now. Here is what happened with ross stores. Not only did they report strong numbers but tjx had strong numbers. Ross samestore sales up 3 and they had good traffic. Traffic was actually up. Not people not coming, people were coming so the discounters at least are holding up pretty well right now. Elsewhere let me just switch off a little bit, another tough day for ipos here. Remember how much trouble we had this week. Duluth holdings, the maker of buck naked underwear did price at 12 so the range was 14 to 16. Truck hero didnt make it. They postponed. Noble midstream also didnt make it, they postponed. Two out of three couldnt even make it to market. What we did get to market is holding up pretty well. Duluth did go to market at 12. Its trading at 14 now so thats up nicely. Match group second day in a row its up. Square which priced yesterday at 9 and had a great day is trading was trading up and has now moved into negative territory on the day. Let me just show you alibaba and note for you that alibaba has had a pretty good week, its up about 6 . 3 today. And some of that may be people buying ahead of alibabas inclusion in some big indices. Msci on december 1st is going to be including alibaba and 13 other china america listed stocks. That means more china in the global indndices. Next hour well be talking about investing in china and what this may mean for your portfolio. Guys, back to you. That msci news big deal for the stocks involved. Thank you very much, bob pisani. Lets get to Brian Sullivan at the nasdaq with a news alert. Hi, brian. Mandy, how are you doing . Its the weekly rig count numbers by baker hughes and we lost ten oil rigs. The rig count down ten week over week. Natural gas rigs by the way stayed flat. Nat gas likely to stay under pressure. Wti crude not moving on that. The rig count is down but the market clearly waiting to see a decline in production. Yes we lost a couple hundred thousand barrels a day in america but the rest of the world has more than picked up that slack. Were still pumping 1. 5 to 2 Million Barrels of oil a day. The rig count is declining but its not impacting the ovmarket. If i keep doing this, im going to call myself old man and the sea drill. Oil did dip below 40 the back of doms head. Im watching right now because im trying to follow this rig count data but also watching whats happening with shares of alphabet. Theres so much going on here. We made steady gains up for alphabet. This google announced its going to hire diane green to run its Cloud Business in an effort to take on the industry led by amazon with amazon web services. The stock is up 5 . So alphabet shares certainly one of the large cap tech ones to focus on, tyler, given whats happening overall with this market rally. Like you said, a very big one, one of the best moves for the week weve seen all 2015. Fantastic, dom. Thank you. Lets go back to eamon javers who is following what businesses can do to protect themselves against the possibility of assault. Eamon . Reporter yeah, thats right, tyler. What the Security Experts tell us is that there are opportunities in the planning stages of a terrorist attack for businesses and regular folks to step in and actually interrupt a terrorist attack thats in process as its being walked through the planning stages starting with the very simple act of acquiring supplies. They say a lot of times thats an opportunity to step in for Law Enforcement and civilians to interrupt the terrorists before they have the opportunity to strike. Also impersonation is something that they see in a lot of these Different Cases where the terrorists will actually go and get an ambulance drivers uniform or a Police Officers uniform, stealing those can be an indication of a larger attack that might be in the works. Also rehearsal. The entire Team Sometimes will go and look at the venue, case the venue before they go operational and finally the deployment stage is one where theres a lastminute opportunity here for civilians and Law Enforcement to interrupt an attack before the damage gets too far out of hand. So all of those opportunities. And what the Security Experts tell us is there are lessons to be learned from Israeli Security which has been doing this for a long time. Take a listen. Instead of just having passive security guards who stand still, to engage in conversation, to move around outside of a sports venue, outside of a shopping mall, and engage with people and by doing this youre not offputting shall youre not menacing, youre instead just probing a little bit. Reporter so the idea here, tyler s that youve got to be very proactive. Even the profession security guards have got to be moving around the venue talking to people, finding out their stories, asking them what theyre doing here in a very friendly way but thats the opportunity to spot something that seems untoward and thats the opportunity to do something about one of these attacks before the terrorists have the opportunity to do something really disastrous, tyler. Thank you very much, eamon javers outside of washington, d. C. The fed has hinted that a december rate hike is likely, but our next guest says while the u. S. Could handle a quarter point rate hike, the worlds markets, well, not so much, and our guest is our friend ron insana, cnbc contributor. He wrote about this on cnbc. Com. It is unusual. One would think that potentially the European Central bank would be loosening up. And mario draghi indicated that today. And putting more money into the system going the other way. A rate hike in the United States, is that going to hurt markets around the world . Well, you know, so far we havent seen that response but what worries me, when you look through the minutes of the feds last meeting they raise a couple issues. Number one, is there going to be an intervening shock between now and december. Weve had one or two. Then they talked about overvaluation of commercial real estate. Spreads widening and so sometimes when you raise rates in an environment where there is some stress, not distress, but stress in the credit markets, that could exacerbate that problem. I think were going to find out if theres overleverage in the system if and when the fed starts to move. If they go in december, that might be the point at which we find out, you know, as Warren Buffett once said, who is swi swimming naked when the tide comes out. While geopolitical risks may have heightened, the markets have actually calmed down. And some people are suggesting, okay, so weve gotten the uncertainty of liftoff out of the way and everyone assumed that rate hikes in the future will be gradual, the path will be shallow, but it is a big change relative to the rest of the world. We are going one way, the rest of the world is going the other, and so we have to see whether that pretty much the only major economy in the world that is maybe the uk will go in 2016. There are particular markets or regions that would be affected more greatly by a regime of rate hikes, not just one. Certainly emerging markets. The strains on currencies would become more evident. What also caught my attention was the flattening of the u. S. Yield curve which is not necessarily what the fed would have wanted if its indicating that rates are going to go up. It would be a reflection of a stronger economy. The yield curve should steepen in that scenario and instead short rates are going up faster than long rates and so were seeing a flattening which again could portend either an indication of maybe weaker growth expectations down the road, certainly inflation is not maybe the bond market is thinking differently and the bond market tends to lead stocks when it comes to this type of environment. No cataclysm, but something to watch. Have a good weekend. Lets go to jane wells with breaking news. Hi there, jane. Reporter hi. Mandy, one of the most contested lawsuits between two of the largest commodities in agricultural in this country in federal court is being settled. The sugar farmers and the High Fructose Corn Syrup refiners are saying they have settled their fouryearold legal battle. The terms are not being disclosed, but this was a 1. 6 billion lawsuit and counter lawsuit. The sugar folks first sued the corn syrup folks for marketing themselves as being natural and sugar. Then the corn syrup and the refiners counter sued saying it causes obesity and cancer. Very contentious. The sugar folks had brought in highprofile attorney mark lanier to litigate for them but they are announcing this morning they have reached a settlement. The parties continue their commitments to practices that encourage safe and healthful use of their products including moderation. We do not know the details, but this fouryearold battle is going away. Why am i standing in an al mand orchard . Ill explain that later. A bit of a sticky situation. Rents through the roof but is relief on the way for the American Housing market . We have new data you have to see. Plus, nike shares are soaring. Its the best performer in the dow this year but what could happen to Consumer Discretionary stocks when Interest Rates begin to rise. Morgan brennan has some clues for us. We crunched the data and one of the years Top Performing industries in the sector could turn out to be the biggest losers when rates begin to rise. We will have that run down when power lunch returns. patrick 1 whats it like to be the boss of you . patrick 2 pretty great. patrick 1 how about a 10 raise . patrick 2 how about 20 . patrick 1 how about done . patrick 2 thats the kind of control i like. And thats what they give me at national car rental. I can choose any car in the aisle i want without having to ask anyone. Who better to be the boss of you. patrick 1 than me. I mean, you. Us. Power lunch returns. Every insurance policy has a number. But not every Insurance Company understands the life behind it. For those whove served and the families whove supported them, we offer our best service in return. Usaa. We know what it means to serve. Get an insurance quote and see why 92 of our members plan to stay for life. I love working in the salinas area becauseriselda zendejas. I always wanted to do something where i could help people around me. So being a construction supervisor for pg e gives me the opportunity to give a little bit back to my community. I have three boys. Theyre what keep me going every day. Our friends, families live in the area. And it is important for all of us that we keep our community safe. Together, were building a better california. Its gotten squarer. Over the years. Brighter. Bigger. Its gotten thinner. Even curvier. But whats next . For all binge watchers. Movie geeks. Sports freaks. X1 from xfinity will change the way you experience tv. Welcome back to power lunch. Im mandy drury. Tesla recalling its entire fleet of model s sedans to check the front seat belts after a passengers seat belt became disconnected. The stock has pared losses. Its down by 1. 7 now. Abercrombie fitch soaring 24 with the teen retailer easily beating profit estimates and revenue also beat. Footlocker topping estimates as well. Reporting a jump in statementstore sales. The shares responding up by 5. 5 . Lets get to the front of doms face now for a market flash. Hi, dom. It is the face this time. Lets talk about a followup on some of those retail names. A lot of those movers today but one thats under the radar, its a chinese company, called vip shop surging by 11 . Its a chinese Online Discount retailer for things like apparel. On wednesday the Company Reported quarterly profits that more than doubled and said it would buy back more than 300 million of its own stock. Its lifted shares by 17 over the course of the past week. Thank you very much. To the American Housing market we go and renting a home, never been more expensive, but are we finally seeing some relief, some flattening in the way rent hikes are progressing . Diana olick is in washington with more. Hi, di. Reporter hi, ty. Well, there are signs of relief coming. Are we there yet . No. But take a look, rents in october were 4. 5 higher nationally then they were a year ago. Thats still a bigger gain than is historically normal but compare that to 5. 3 annual gains in september and 6. 6 gains in july when rents hit their highs. The gains are shrinking. Why . Well, its all about this, new construction coming online now and coming in 2016 when this building will open with over 200 units for northwest d. C. While Single Family construction has been recovering very slowly, multifamily has been where the developer money is. The number of apartments being built this year is more than twice what it was in 2009. Developers making up for lost time during the recession. There was concern that the sector was overheating but we are starting to see multifamily starts come down. Weve also seen high relatively sales by reits. Last month sam zell agreed to a deal with starwood cap tool group to sell 23,000 apartments to starwood. Thats roughly a quarter of residential equitys total stock. While some analysts warn zell was signaling a top, others say valuations are just very enti enticing so it was just a good deal. Still kind of red hot but a little bit of easing. Thank you very much. Nike soaring right now. The athletic giant raising its difficult dend, splitting its stock, and announcing a big buy back. Its certainly supporting the dow in todays trade. Consumer discretionary, the best performing sector this year up today 1 alone. But with the fed expected to raise rates next month, what happens to Consumer Discretionary in a rising rate environment. Lets find out with Morgan Brennan taking a look. Hi there, morgan. So weve got more signals this week the fed could raise rates as soon as next month. How would consumer stocks fare . Since 1990 there have been three rate hike sickles and one oneoff increase. In the month following each of those four liftoffs according to kensho, Consumer Discretionary fell an average of 2. 6 . Slightly worse than the broader s ps 2. 4 drop. Now, in terms of the worse performers, auto parts retailers. Auto nation fell every time down nearly 14 . Also oreilly automotive, a big loser here down about 12 . Not positive a single one of those times. Starwood hotels and resorts, this tends to tumble as well down every time, has averaged a 13. 5 loss. And a name that tends to outperform during the holidays, omni com, also one to potentially steer clear of following a hike. There are some outperformer as well. H r block trading higher with an average of 7. 5 . Another one, mcdonalds, up 5 on average according to kensho. Also a few retailer names to consider. Best buy up 9. The 5 . Also kohls and nordstrom, each arching 3. 5 plus gain in the month after an initial rate increase. Back over to you. Thank you very much, morgan. Hedge Fund Investors heading for the exit doors. How worried should the socalled mart money be in the market . Well take a closer look at that story next on cnbc. Its time for the your business entrepreneur of the week. Kelly jackson is an optometrist in beautiful golden, colorado. Shes a leader. Golds shop local movement. She and the town have big plans for Small Business saturday, including a 5k race. Watch yours business sunday mornings at 7 30 on msnbc. This is more than just a town. This is our home. And Small Business saturday. Is more than just a day. Its our day. To shop small at the places we love. With the people we love. For stuff we cant get anywhere else. And food that tastes like home. Because the money we spend here. Can help keep our town growing. On Small Business saturday, lets all shop small. For the neighborhood, the town, the home we love. On november 28th, shop small. Welcome back, everybody, to power lunch. Check out this water rescue that was caught on camera. A kayaker fell out of his boat while floating down a rapid in north carolinas green river narrows. A volunteer rescuer leapt into the Rushing Water diving over the kayak to grab the helpless boater. The kayaker suffered a broken tailbone and two fractured vertebrae. He faces about an eightweek recovery, but look at that. That is courage right there. Wow. Incredible footage. True courage. Thank you. The big hedge funds have been suffering this year. Now new clues that investors plan to pull their money out, too. Kate kelly is here with the full numbers. What kind of score are we looking at here . Well, mandy, the early evidence is coming in and its not encouraging for the industry. September 30th is an important milestone for hedge funds because its when many of them tend to get end of year redemption requests from investors, people who want to pull their money out by the end of the year. The gravity of the demands can become apparent right around now. Today some new numbers. Redemption activity this month, with i is usually reported on the 15th, seems significantly higher than last months with 4. 9 of Hedge Fund Assets as monitored by the Financial Software firm ss C Technologies being pulled as opposed to just 3 for the month of october. The loss of Hedge Fund Assets which can stem from both investors pulling out of funds but also losses in the market has already been under way. Heading into that september 30th deadline i was talking about, hund assets dipped from a high of very close to 3 trillion in the Second Quarter of this year overall to 2. 87 trillion according to hfr data. To the extent were seeing downward pressure on some of the Popular Hedge Fund long positions which range from apple and facebook to valeant, gilad, and citigroup, Hedge Fund Sales to meet investor cash demands could be to blame, mandy. Hard to tell on any given day whats pressuring a stock but thats definitely going to be a factor, especially with some of the crowded trades. Very interesting new data. Thank you very much for that, kate kelly. Ty, over to you. To the bond market we go and Rick Santelli who is tracking the action at the cme. Hi, rick. Hi, tyler. You know, twoday of 2s is what everybody is looking at. We were flirting with some of yesterdays range and now 90 handle grab back. Havent settled with a 90 handle since, well, lets show the chart, early 2010. Theres your twoyear note yield. Take a good look at that pattern. Keep that date and go further down the curve. Here is how a 10 looks from the same period. Obviously the joys of zurp showing up in the 2year chart, not so much the 10year chart. Lets go a euro 2year from the same spring of 2010. Whoa, what a difference as it gets ever closer to minus 40 basis points. The more draghi talks about artificial inflation, the bigger the negative yield seems to get. Think about that for a minute. The last chart is a twoday of the dollar index. And even though it is not going to breach 100, at least it doesnt look like it, win wedne was a tidewater mark going back to march 13th. We are getting closer to that 100 index. Tyler, back to you. Thank you very much. Lets check out the markets right now as the dow has basically gone straight up for the day. A very nice week for the dow. About 3. 4 on the week. Today getting a boost among other things from nike which split its stock and boosted its dividends. Strong week for the s p 500 as well. There you see it up about 3. 33 . This could end up being the indexs best week in more than a year. And right now the nasdaq is up more than half a percent on the day and lets go to kate rogers for a look at the action there. Tyler, thats right. The nasdaq is up right now by 0. 7 and on track for the best week in months. Part of the greater retail rally, ross stores up 8. 5 due to that earnings beat on the top and bottom lines although theyre giving Current Quarter Profit Guidance a little below guidance. Also Google Alphabet classa and c shares higher. Among the biggest gainers, due to the Company Hiring di van green. Tesla taking a hit down by 1 due to that recall, about 90,000 of its model s sedans for seat belt issues and Akamai Technologies down about 5 after a downgrade from goldman sachs. Thank you very much. Lets take a look at how gold prices are faring in light of the strength of the dollar that rick just showed us a moment ago. Gold is currently down by 1. 70 at 1,076. Lets look at some of the other metals, precious and otherwise. Copper is currently down along with silver and platinum. Palladium however getting a nice kick to the upsooiide by 2. 5 . The paris attacks coupled with the refugee crisis triggering uncertainty in germany. Is europes biggest economy losing its inflauns. Plus the attacks in mali raising questions about investing in africa. Is africa a safe place to invest . Well take a look at the situation very shortly. Is europes biggest economy vo what does the world run on . It runs on optimism. Its what sparks ideas. Moves the world forward. Invest with those who see the world as unstoppable. Who have the curiosity to look beyond the expected and the conviction to be in it for the long term. Oppenheimerfunds believes thats the right way to invest. In this big, bold, beautiful world. Hello, everyone. Im sue herera. Here is your cnbc news update. Al mourabitoun said it was jointly responsible with al qaeda for the attack in mali in which 27 people died, including five gunmen. This is according to the akbar news agency. Jonathan pollard checked in at a federal Probation Office in new york following his release from prison. He served 30 years for selling u. S. Intelligence data to israel. His attorneys are beginning a Court Challenge to the terms of his parole which state he has to remain in the u. S. For at least five years. Ted cruz zdistancing himsel from Donald Trumps discussion that muslims should be registered in the u. S. He says hes not a fan of government registries and is a defender of religious freedom for all americans. And as weve been telling you, tesla is recalling its entire fleet of model s sedans to check the front seat belts after a passengers seat belt became disconnected. The recall involves 90,000 cars worldwide. Thats the cnbc news update at this hour. Ty, back to you. Thank you very much, sue. Stocks are off their session highs but the s p 500 is still on pace for the best weekly gain of the year. The s p is up 3. 5 or thereabouts this week. So has the market shrugged off those global fears . It sure seems so this week. Will we see gains into the end of the year m joining us are james lew, a Global Market stribs at Jpmorgan Funds and jack rifkin, chief Investment Officer at eltegruss. It has been a positive week for stocks. To what do you attribute this weeks gains and are they persistent . Its been a bumpy week. There have been tragic events throughout the world. When you look at u. S. Fundamentals both in terms of what specific stocks are doing and the stories there, i think investors are finding that stocks actually can be resilient in these times. And i think there are a few stories. The first is that its pretty well priced in the fed is going to increase Interest Rates in december. In fact, if the fed doesnt i think that would be a big missed community. The second fact is 2016 should be a much better year than 2015. We should see earnings bounce back. Weve seen oil, although its been faltering, its stabilized and the dollar has stabilized to some extent as well. I think thats what the market is looking through right now. Jack, let me turn to you and ask the following question. I have been following markets a long time. You have, too. But this is one of the few times that i can recall that stocks seemed to be welcoming the idea of an Interest Rate hike. Why . Well, partly its time. It reflects to some extent that the u. S. Economy is actually doing pretty well. The labor market is pretty tight and everybody wants to get away from the concept of qe. So thats part of whats going on here. I think the markets themselves right now, you know, i dont look at markets week to week but were up, what, 1. 5 , 2 yeartodate. If you look underneath that market, we have only half the stocks up yeartodate and half down. Do you see as james does that 2016 is likely to be a better year in part because the profit comparisons will be more favorable and maybe the economy will step up to another gear . Im not so sure about how good profits are going to be next year. I think on balance its going to be a fairly decent year, but the top line revenue gulf is going to be low. I think its going to be a stock by stock market. On balance, yes, the market because of gdp, nominal gdp, will creep its way up, but id rather be looking at individual companies than talking about the market. All right. James, let me go back to you and get you to factor in the risk next year that either geopolitical instability or the election next year could cause investors to be more restrained about stocks. Thats one question and, two, what sectors do you like as you go into what you think is going to be a better 2016 . Go ahead, james. You typically dont see stock market rallies fizzle out right at the end of the cycle. We do think were closer to the end of the cycle definitely, but we dont think earnings are done yet. We think Profit Margins especially in energy and materials can bounce back. Also multiples. Were just not seeing irrational exuberance at all in the market. I would still argue people generally dislike the market. In terms of specific sectors, i would point to financials, Consumer Discretionary. Consumer discretionary has already done very well but we think that some of the gains in Consumer Spending will still accrue to the market over the next year or so. Thank you very much. Back to jacks point, a 1 yeartodate gain in the market is hardly a sign of irrational exuberan exuberance. Thank you very much. Mandy . Thank you very much for that, tyler. In the meantime, why dont we take a quick look at ge shares which are hitting 52week highs right now. Sitting at 30. 95 with a gain of 2. 3 today. The controversy over Syrian Refugees is presenting a new challenge for german chancellor angela merkel. See ma mody has looking at how t affects her leadership in germany and her influence throughout europe. Shes in a very tough position. Shes been drawing a lot of criticism of her handling of the refugee crisis following the attack, of course, in paris over the last week, and, remember, shes been a big advocate of letting refugees in and her handling of the refugee crisis has resulted in her popularity dropping. Citi saying that speculation that she will be forced out or step down has never been more intense than now during her ten years in office. The political strategist at citi, tina fordham, says without merkel is question continues to remain if germany would continue to be europes power house. There are three big challenges that will test merkels leadership in the coming weeks. First, finding a solution towards the influx of refugees while addressing ongoing security concerns and orchestrating an attack against syria using the help of russia and turkey. Merkel will play a pivotal role in these discussions given her close relationship with Vladimir Putin and turkeys erdogan. Ubs says it could pressure the euro already trading at 106 on the back of comments this morning from mario draghi. Mandy, thank you. Thank you very much. Is africa is safe place for your money . Investing in africa coming up next on power lunch. Surprise we heard you got a job as a developer its official, i work for ge what . Wow. Yeah okay. Guys, ill be writing a new language for machines so planes, trains, even hospitals can work better. Oh sorry, i was trying to put it away. Got it on the cake. So youre going to work on a train . Not on a train. On trains youre not gonna develop stuff anymore . No i am. Do you know what ge is . When a moment turns romantic why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the 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, mandy, thank you. 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 and a 200 savings card. Sup jj . Working hard . Here at the Td Ameritrade trader group, they work all the time. Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks, options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. Welcome back to power lunch. Im sue herera with a news alert concerning volkswagen. The u. S. Environmental protection agency, epa, says that software allowing six cylinder volkswagen diesel engines to cheat on pollution tests is on more models than originally thought. At heart of this is the definition of the software and what the software does. Vw disagrees the voft wasoftwars cheating. The epa says it does allow cheating. So at this point the epa is saying that the software is on vehicles extending back to 2009 which is much earlier than expected. So at the heart of this is the software, whether or not it allows vw to cheat or not, and the epa says, yes. Volkswagen says no and volkswagen says it will look into it. Mandy, back to you. Shares are off by 3. 5 . Thank you very much, sue. All the hostages have been freed from the Radisson Hotel in mali. Extreme ists stormed the hotel with guns and grenades. There are 27 dead. Mali special forces troops went floor by floor freeing the hostages. If you are a ceo doing business on the continent or thinking about going into the region, do you stay the course or get out . Quinton primo runs a 3 billion real estate empire in the United States and africa and maintains offices in ghana and kenya and christian advises Multinational Companies about risks. West africa has had a lot of challenges to deal with from ebola to various civil and political internal strife. Obviously the oil decline has affected particularly nigeria. Adding in the potential for terror twattacks, to what degre does it affect fdi and the area . I think its going to be very poor for fdi especially if youre talking about new capital going into the region. Oil is down. That really has harmed nigerias economy which is the heavyweight in the region. If you look at mali, its more of an agricultural play, thats a big part of the economy. That was impacted by the decline of cotton which fell out of bed years before gold and oil and these other things have. However, if you are already in the region, if you are already active there, theres a Silver Lining. I hate to say theres any Silver Lining to a tragedy like today but youre going to have a lot more attention paid finally i think to problems in this region. Previously you had a french intervention beginning in 2010 12 so stom islamists who were separatists. Now you will have more security interest from the u. S. And other western nations. What about some of the efforts of agencies that are already in that region, christian, like the African Development bank and the world bank. How does it complicate their projects that might be in the works or on the planning stages . I think it makes it more difficult. It demoralizes those who are there. It distracts from longer term objectives of these agencies which have shifted more to focusing on corruption as something that causes longterm economic malaise. Corruption in mali is a touch better than it is, for example, in nigeria just to use that heavyweight as a comparison. If you look at Transparency International which ranks countries, mali is still in the lower half but its not in the lower most area where you find nigh jeria nigeria, this will cause a lot of foreign assistance to switch more to the security angle and less to pure economic and infrastructure factors. Turning to the real estate side of things, quinton, this is your area, to what degree do recent events affect any plans that you may have had from a Real Estate Investment point of view in africa . Well, first, let me say what has happened in mali is extremely tragic and i send out a prayer to those that have been involved and to their families. But more importantly in terms of Economic Growth and the Real Estate Investment opportunities that im here to talk about, i would say that there are two major impediments to longterm growth in africa, really intermediate growth in africa right now and those are, one, as chris pointed out, decreased commodity prices, especially copper and oil. And then secondly Global Capital inflows. A lot of money is going out of africa. More hot money than anything else. China has cut back. But africa is a longterm growth story, and there is still robust demographics. There is still an increasing consumerism. Theres an increasing diaspora returning back to africa demanding more high quality goods and services. Theres urbanization. So these are trends, very young population. So these are factors that will continue to make africa an extraordinary place for investment over the course of the next and quintin, which african countries to you see the best opportunities . You must understand that africa is not one thing. Its 55 different things. So theres we really have to be careful about how we describe and characterize or mischaracterize africa. But out of the 55 political entities we are most interested in seven. Probably with a keen focus in the west and ghana and nigeria and in the east on kenya and tanzania. So these countries are all very, very different. Africa has receives 90 of its export revenues from oil, but as a percentage of the overall economy, oil represents something less than 13 . So nigeria, all the headlines are about the exports, but nigeria is a very diversified economy. Its one that has tremendous aspirations of its people. Its very capitalistic economy. Yes. So, again we believe fundamentally in the Growth Prospects of these and other countries in africa. And were just interesting in seven but theres many more than seven that present interesting investment thesis for investors. Thank you very much to you both. Interesting discussion. Thank you very much for joining us today. Ty, over to you. Coming up, france extending its state of emergency law allowing social media to be restricted during times of emergency. Is that a necessary step or does it go too far . We will discuss that important question coming up on power lunch. And on a completely different note, star wars the force awakens already breaking Box Office Records four weeks before it even comes out. Well bring you those numbers after this. Stay with us on cnbc. Its time for the your business entrepreneur of the week. Kelly jackson is an optometrist who owns Table Mountain vision in beautiful golden, colorado. Shes a leader of golds shop local movement. They have big plans for saturday. Its our day. To shop small at the places we love. With the people we love. For stuff we cant get anywhere else. And food that tastes like home. Because the money we spend here. Can help keep our town growing. On Small Business saturday, lets all shop small. For the neighborhood, the town, the home we love. On november 28th, shop small. Week. Week. During sleep trains thanksgifting sale save up to 300 on selected mattress sets, even tempurpedic get up to three years interestfree financing plus, choose a free gift but hurry, sleep trains thanksgifting sale wont last welcome back to power lunch. Im Julia Boorstin with an update on star wars. More than 50 million worth of tickets to star wars the force awakens have already been sold according to a source close to the situation. Thats with four weeks left to go. Fandango the fit lm has set a presale record. Of this puts star wars on track to set a new u. S. Opening Weekend Box Office record. Imax entertainment ceo bob foster tells me what makes this incredible is its really before the proper Advertising Campaign has kicked in. Working in the films favor, timing, with 16 days between its release and when most people will return to work after the new year holiday. And disney is requiring theaters to keep the film on screens through the new years day holiday. Now, this is just the latest sign that disneys 4 billion acquisition of lucas film is paying off in droves. Its just one factor driving disney shares higher over the last three months. Power lunch will be right back. Come on, wake up come on, why ya sleepin . Come on what time is it . Its go time. Come on. Lets go, lets go, lets go. Woooo hoooo yeah i feel like i went to bed an hour ago. Ill make the cocoa. Get a great offer on the car of your grownup dreams at the mercedesbenz winter event. Its the look on their faces that makes it all worthwhile. But, hurry, these offers end soon. Thank you santa in panama, which is a city of roughly 2 Million People, we are having 5,000 new cars being sold every month. This is a very big problem for us with respect to fast and efficient transportation. Its kind of a losing proposition to keep going this way. We are trying to tackle the problem with several different modes. One of them is the brand new metro. We had a modest forecast 110,000 passengers per day in the first line. We are already over 200,000. Our collaboration with citi has been very important from the very beginning. Citi was our biggest supporter and our only private bank. We are not only being efficient in the way we are moving people now, we are also more amicable to the environment. People have more time for the family and its been one of the most rewarding experiences to hear people saying the metro has really changed my life. Can a a subconscious. Mind . A knack for predicting the future. Reflexes faster than the speed of thought. Can a business have a spirit . Can a business have a soul . Can a business be. Alive . Here is whats coming up. Dont look now, but stocks about to post their best week in a long time. Well talk about a couple of the big reasons why theyre doing so well. Plus, in times of crisis, should social media be restricted . A debate, and we have it. And what retailers are doing it right ahead of the holidays and which ones couldnt market themselves out of a paper bag. Plus melissa and i humbly present our standout stocks of the week, ever so humbling. Humble is your middle name. Humility is my best quality among many. You better practice before you get to that segment. California is getting ready for el nino. Now farmers are taking some interesting steps to try to prepare for another drought next year. Jane wells is live in fresno, california. Jane . Reporter you know, mandy, i love this story because it proves you can make a market out of anything, even storm water. Groundwater which feeds the Central Valley where im at where you get a lot of your food from, its 250 feet below me. Its getting lower. One guy who grows almonds and grapes, californias two biggest legal crops, thinks he has a solution. This is the north fork of the king river right here. Right now it looks like a desert and its looked that way for four years. Reporter but four years ago don cameron says it looked like this before the drought. Back then i used some of the storm water to flood a vineyard during the winter with the intention of letting the water seep in the underground aquifer so he wouldnt have to pump as deeply in the summer. It worked and the grapes were fine. It is a risk and a lot of our neighbors thought we were crazy. We felt it was worth the effort. We know i have been farming here for 35 years and i have seen the water table decrease over those years and so, you know, early on i knew we needed to do something to correct the overdraft here. Reporter other growers of other crops like almond are participating and theyre going to flood some of their farms this year in the Central Valley. Thats assuming el nino fills the rivers. There may soon be a battle over who owns the rights to storm water. It could become a commodity. There is starting to be a recognition that floodwater now has value, and thats the real change thats happened because of the drought. Before floodwater was something everybody wanted to get rid of. Now people are seeing it as a resource. Reporter for example, a farmer in sandy soil who replenishes the water coming down from the sky into the aquifer could possibly be compensated financially from others in the same irrigation district for making it better. Can you believe it . I love it. Back to you. Thank you very much. And thank you all for joining us today and this week. Have a great weekend. That will do it for the first hour. Brian and melissa, handing it oufer to you at the nasdaq. 2 00 on wall street, lunchtime in denver. Stocks are higher. The dow looking to have one of its best weeks of the year, maybe even in four years. Im brian with melissa. And once again were in her home at the nasdaq here in times square, new york city, usa, on a spectacular fall friday. Mi casa su casa. A terrific week for the markets and technology has been a trail blazer. Were seeing nice gains. W we need to look at the s p tech sector and some individual names. I knew you were going to be equipped with stats. I came prepared. Only 60 stocks are down this week so its been a huge volume and breadth week. By the way, if you are being negative, southwestern energy, cheese peek energy, the worst two performers in the s p 500. You and i are going to talk about chesapeakes bonds later on in the show. We will. Your top corporate story is outside of this and it is one that developed a short time ago. Tesla announcing a huge recall. The Company Wants customers to bring in their model s sedans to have the seat belts inspected. A driver in europe had an issue with a bolt on a belt. Collin brush has a bullish price target on tesla. Any change to that based on the recall news . Absolutely not. What weve seen from the company is they had one issue that they identified with a single customer. They checked on 3,000 vehicles, did not find another issue within those 3,000 vehicles and they are doing this as a precaution. In our view this Company Really has overreacted in its early stages on some of the safety issues just to make sure their brand is really essential to their longterm success and theyre taking care of that in an aggressive way with this recall. Presumably all these model ss being recalled were manufactured at the facility or a facility prior to when the modelx was also on the same line. Does this call into question some of the execution issues that some have raised in the past, especially when it comes to the finishing part of the line, the very end of the line where the s and the x both get finished . Are there concerns now that perhaps this could be a more common issue . I dont think so. I mean, in speaking with the company, this is only an issue with the s and a design on a single part, so it does not impact the x at all. I think in terms of the learning cycles and some of the Little Details here with the s, theres ongoing learning. Theyre attending to this in a very, very detailed way and i think what were just seeing is the value of safety and the value of perfection at this organization. But lets be clear, i mean the headlines recalling thousands of model s sedans. The headline should be tesla recalls all of its cars, correct . Absolutely. This is every one they got. Im not going to disagree with that. This is all the cars and theyre asking drivers to come into the service stations for what sounds like a five to seven minute fix and have them be on their way. I think theyre still at a stage in the growth of the organization where they can do the sort of extreme recall without it being really expensive or having to make some sort of value versus safety decision. What is the cost, colin . It sounds like its just the time on the labor. Its potentially just a single part but also just the labor involved, so i think its minim minimal. Theyre saying its de minimis and well believe them until proven otherwise. Colin, we appreciate your inside on a developing story. Colin, thank you very much, bud buddy. Thank you for having us. Lets talk china. That countrys main market continue their wild ride. Get this. The shanghai comp is up this week, down big over the past six months, but still up yeartodate. Did you follow all of that, america . But there may be some hope of stability ahead because beginning next month one of the worlds biggest index providers msci will add 14 u. S. Listed chinese stocks into their indices, including alibaba, jd. Com and bay baidu. Alibaba is not in any of these major indices although its one of the Biggest Companies in the world. Why hasnt that happened and why is it a big deal now . The definition of china has been 150 Chinese Companies listed in hong kong. With the msci decision to including the u. S. Listed names 14 u. S. Listed Chinese Companies will go into that definition of china. Just in hong kong, not even Mainland China, we have 14 Big Companies here that were never included. Why werent any of them in the big global indices . Because theyre listed here, they didnt fit the definition of china. Msci has gone back and changed that playbook which affects Asset Managers globally. The important thing is we want to emphasize the passive investors, the people who are index, are winning the whole battle around the world. So whoever whats in these indexes is what controls the world essentially. So its very important right now. So eem, for example, which we talk about all the time, thats pegged to this index. Correct. Theyre going to have to go out and buy alibaba, jd. Com, et cetera. Exactly. Were talking about tens of millions of dollars on november 30th will be going in and buying these 14 stocks that candidly we own 13 of them in advance of this decision. The etfs we talk about, the passive indexes, theyre growing rapidly. For sure. Whoever controls it essentially controls whats going on in the world. Kweb, this is china internet, one of the things i find interesting is most of these stocks that are going in are internet stocks, tech stocks. Correct. The composition of china is changing. Its a better reflection of chinese economy. Theres so much emphasis on the tra dditional sectors such as p, export driven manufacturing, at the same time 60 of chinas growth is coming from the services sector. Retail sales in october, 11 yearoveryear. 30 of that yearoveryear came from online. I want to emphasize china stock markets are among the biggest in the world. People dont know this, shanghai is the third biggest stock market in the world after the new york and the london stock exchange. Shenzhen is the fifth biggest stock market in the world right now. Those arent even in any of these major global indices. When is that going to happen . When are they going to include Mainland China . Msci has been valuing the inclusion of the onshore market. We think with the launch of the shenzhen hong kong stock connect which allows investors to invest onshore without quota, the process can begin. We think its a done deal First Quarter 2016 shenzhen launches. Got to let you go. Are people buying ahead of it. If theyre not, we believe they should be. Well keep an eye on that. Alibaba up 6 . Some of that may be people buying ahead of that. Thank you. Well have you back here when the news hits in the beginning of december. Back to you. Bob pisani, thanks so much. Outside of china emerging markets have had a rough year. The eem is down 10 in 2015. So are there still big opportunities in the emerging world . Berndt berg is with societe generale. Good to have with you us. Good morning. How do you look at emerging markets especially in light of fed rate hike cycle about to commence . I think the fed rate hike cycle with create some further turbulence across emerging markets. I think theres a lot of bearishness out there at the moment. People are careful with the fed hike end of this year and i think you have to be on the sidelines for now before you would invest and take some tactical bullish bets on emerging markets. All emerging markets across the board or commodities specific emerging markets . I think at the moment its commodity specific, especially brazil, turkey, south africa where you want to be careful. The countries which face outflows, capital outflows surrounding a fed hike you would want to be careful tat the moment, so especially the latin american currencies, you want to stay on the sidelines. Has brazil gotten to the point where its to beaten up its finally attractive again. I think they could see a further selloff. Its vulnerable at the moment. Fundamentals just coming from brazil are still very bad so local sentiment is bearish. Unemployment is rising. Inflation is out of control. Political instability. Sometimes you think its always darkest right before the dawn. Thats right. I think maybe early next year there is some money to be put in emerging markets again. Investors come back from the Holiday Season and with the fed uncertainty out of the what i you could see some i would not rule it out that next year after all the bearishness of the last four years in emerging markets we could see some technical great opportunities to reinvest into emerging markets. Great, thank you for joining us. German guy working for a french bank in the uk. Its a global economy. In america. Its a global economy. Thank you. Thank you. On deck, the latest out of paris and a look at the social media creakdown in the wake of last weeks terror attacks and a question. Should twitter and facebook he restricted in times of crisis . Plus one wall street pro making a big bet on big blue. More on that call ahead. As we wrap up the week, were going to present three things to help make you smarter at a Cocktail Party tonight. We hope. Just three . Thats all we got. Were back after this. Some neighbors are Energy Saving superstars. How do you become a superstar . With pg es free Online Home Energy checkup. In just under 5 minutes you can see how you use energy and get quick and easy tips on how to keep your monthly bill down and your Energy Savings up. Dont let your neighbor enjoy all the savings. Take the Free Home Energy checkup. Honey, we need a new refrigerator. Visit pge. Com checkup and get started today. Welcome back to power lunch, everybody. French lawmakers have just voted to give the government more security powers in the wake of last fridays deadly terror attacks. Lets get back to chief International Correspondent Michelle Carusocabrera in paris. Reporter it was a near unanimous vote, 336 in favor, 12 abstentions. No one voted no. It gives much more power to the state in order to fight terrorism. Let me tell you about it. Police have the power to conduct searches without getting a warrant. However, they cannot search the homes of members of parliament, journalis journalists, or lawyers. The authorities have the power to block internet sites that are deemed to incite or advocate acts of terrorism. Public demonstrations are band and groups inciting acts that could seriously affect public order, they can be fully dissolved. It means anyone suspected of posing a threat to security can be placed under house arrest for 12 hours to restrict their movement and even if the house arrest is lifted, suspects can be prevented from meeting others that are deemed a threat by the state. And while under house arrest, they can electronically tag people in order to ensure that people are staying within the confined places in their home. So these are people who have not actually been officially charged with anything, just people who are deemed dangerous to the state during a state of emergency. Guys, back to you. All right, michelle. Thank you very much. So in times of emergency like the attacks in france, should there be restrictions placed on social media . Its a growing debate. Lets get to our panel. Andrew runs a social Media Masters Program at the university of florida. Chris swek, former assistant director at the fbi, hes a bit concerned about some parts of social media aiding potential terrorists especially in recruiting. Welcome. Andrew, im going to begin with you. Should it be just continued on unfettered or do you agree there is some time, place, or means by which a restriction of some kind would be appropriate . Well, i think the main thing to keep in mind is just the value that social media played, particularly during the paris attacks on numerous avenues. The fact that people around the world found out about the events. The fact that people were on twitter using and i apologize for butchering the language porteouverte. Even after the attacks the place to give people notification of here is somewhere where you can stay if youre now stuck in paris. Safety check on facebook allowed people to let loved ones and friends know that they were safe, that they were okay. And over 4 Million People used this on facebook and it was actually seen by over 300 Million People. It was the first Time Facebook actually used this option for a manmade disaster. So facebook and twitter had such an Important Role in terms of just bringing people together after the event that i think suspending it would be not necessarily the best move in terms of public safety. At the same time, i mean, social media and the internet is being used increasingly to recruit, for instance, potential is isis jihadists. From your perspective, when we hear the fbi is picking up chatter, Law Enforcement is already monitoring social media quite a bit, correct . So where do we draw the line . You want to monitor it, right, because you want to get the leads, but at the same time you think that some of it should be shut down . Well, not necessarily. It would have to be an extraordinary set of circumstances. Law enforcement is not sort of willynilly wholesale monitoring the internet and social media. They have some sort of predication before they can do even a threat assessment. There has to be some level of grounds to be surfing the internet or watching specific websites or specific social media, but we do know that they have recruited aggressively on the internet. We know theres been over 66 individuals in the United States that have been indicted for some type of action related to isis and 80 of them were recruited via social media. So we know its an active recruiting effort on their part, but i dont see them suspending First Amendment rights unless were really, really in an extraordinary set of circumstances. And i dont think were talking about suspending First Amendment rights, andrew, but it is well known that there are exceptions to free speech. Certain forms of speech that is designed entirely to incite violence or hate can be restricted. And thats very true. And you will see that theres a lot of different individuals and groups that are participating and trying to prevent say isis from recruiting new members. Big campaign has been going on by anonymous shutting down twitter accounts, shutting down other social media accounts to prevent isis from recruiting new members. Obviously thousands of members thousands of individuals from across the world have joined isis because theyve been recruited through social media. Its not necessarily a need for the government to censor it. You can do this through individuals. You can report things. You can report, you know, malicious and hate and so forth, different types of content thats on social media. So its up to the people really to do this. Its not necessarily the job of the government to censor the speech thats going on. You can report this type of content to twitter, to facebook to have it removed. So, chris, what has happened of the 66 individuals who have been recruited through the internet or social media, whats happened to the recruiter, to whoever posted the notice, to whoever was the link, whoever owned the page on facebook . Yeah. The government has taken action against some of them, but in many cases the Intelligence Services are not interested in shutting them down because if theyve got a lock on those particular social media outlets, they want to monitor them. Its sort of like a honey pot for jihadists and they may not want to necessarily kick the ant hill. I think what were talking about here though is on a selective basis. If a particular social media site is presenting a particular problem as a communications mode, for example sending out specific communications, i could see that being a clear and present danger as andrew describes or as the test is and having them selectively shut down certain avenues. Chris and andrew, its a good debate, guys, and a hot one now. We appreciate your insight. Thank you. Thank you very much. Thank you. All right. Up next, one tech giant that just threw a huge lightning bolt into the cloud wars. Well tell you who that is ahead. But first, check out the size of this rock. Yeah. Look how big that is. The Details Behind this gem of a find when power lunch returns. Welcome back to power lunch. We want to call your attention whats happening with Chipotle Mexican Grill shares down by 5 currently to near their lowest levels of the day so far. The stock is moving in reaction to a centers for Disease Control website posting regarding the Ongoing Investigation into an e. Coli outbreak that happened affecting Chipotle Mexican Grill. Three additional states have been reported showing people infected by the outbreak strain of e. Coli. So that brings the state count new to california, minnesota, new york, ohio, oregon, and washington, and they say that the evidence available at this time suggests a common meal item or ingredient served is at chipotle grill mexican restaurants and is a likely source of the outbreak. The investigation they say is still ongoing to determine what specific food is linked to the illness. The cdc says it will advise the public if specific steps are identified that consumers can take to protect themselves, but, again, this in reaction Chipotle Mexican Grill down about 5 in reaction to the cdc website posting with regard to the next step and the next development if you will in this e. Coli outbreak. Brian, melissa, just another move here. We know in the past three mounts shares are down about 20plus percent during that time frame. It is really hitting the stock, dom chu. This is one of the most heavily traded in the last five or six reports. The report is available on the cdcs website that came out at 2 15 eastern time. The fear, of course, is the addition of ohio, new york, and minnesota to what had previously been only really a west coast concern. Sure. And california and new york has been among chipotles biggest marks there. We will want to hear from chipotle as to the number of stores that will need to be shut down for cleaning because they shut down in the original recall with washington and oregon, they shut down a limited number of stores but because it was such a limited number, the impact was seen to be limited itself. But you see here chipotle shares down now 8. 5 . Really quick work on the stock in terms of the impact. This is a new low, 52week low for chipotle shares, by the way. Lets walk it back just a bit in terms of the seriousness and i want to be clear. The cdc is doing a great job here because they lay out literally whats new from this to the last report. Theres been one case in new york, two in minnesota two in california and one in ohio. 45 total cases in six states. Only 16 hospitalizations. So e. Coli bad, but were talking one or two cases new true. And not everybody that has, i guess, been infected has even gone to the hospital. Im not saying its not a big deal. Traders are making it a big deal but i also and there could be a lag time for when people report theyve had actual problems or being infected. Jane wells in the initial reporting with the initial outbreak made the point that with the demand for more organic ingredients, this is just a side effect of that demand. I mean, youre going to get e. Coli outbreaks when youre dealing with more organic foods. I learned from the best, which su, and i will pull a melissa lee right now. Youre always very good on giving derivative plays. Can we all an audible to throw up jackinthebox. Not much impact, i looked. Its up. Maybe because they own qdoba. It is up right now 1 , one wonders if you will get a pear trade or people say, guess what . If people got a hankering for a taco, maybe they will check out qdoba. Exactly. I have been waiting to get the word hankering into the show. Unfortunately, not a relation to e. Coli. Were going to watch cmg for you. Still ahead, one firm is throwing in the towel on bed, bath, and beyond. Well talk about that in street talk. But first the final oil trades are crossing for the week. The crude close and street talk coming up. Stick around. vo what does the world run on . It runs on optimism. Its what sparks ideas. Moves the world forward. Invest with those who see the world as unstoppable. Who have the curiosity to look beyond the expected and the conviction to be in it for the long term. Oppenheimerfunds believes thats the right way to invest. In this big, bold, beautiful world. Its gotten squarer. Over the years. Brighter. Bigger. Its gotten thinner. Even curvier. But whats next . For all binge watchers. Movie geeks. Sports freaks. X1 from xfinity will change the way you experience tv. Hello, everyone. Im sue herera. Here is your cnbc news update this hour. The paris Prosecutor Says two of the bombers who blew themselves up at the soccer said yum in paris last friday had their fingerprints taken on october 3rd while traveling through greece. A federal Aviation Administration task force will submit its final recommendations for registering Drone Operators tomorrow setting the stage for the agency to propose new regulations next month. The recommendations had been expected today. Hyundai recalling more than 300,000 sonata midsize cars because the brake lights can stay on while the car is moving. That recall involves sonatas from the years 2011 and 2012 model years. No crashes or injuries have been reported. And on a lighter note, the capit c capitol Christmas Tree arriving this more than. It traveled 4,000 miles from alaska. House Speaker Paul Ryan will light the free on december 2nd. That is the cnbc news update this hour. Brian, in a week that has been filled with some tragic news, we thought wed end on something happy. Big Christmas Tree, few things happier than that. Thank you, sue. You know this, it has been a big week for stocks. The dow solidly higher and keep this in your big brains for cocktail parties tonight, if we close above 17,910, arguably a little ways from here, but thats the number, we will have the best weekly gain for the dow in four years. Brian bell ski has been bullish. Does it make him even more so . You were bullish before it was even in vogue even in august when everybody was predicted doom for the markets. Have you changed your stance at all . You know, brian, thanks. We have not. We remain resolute with respect to our bullish call. Weve been pretty consistently bullish since the Fourth Quarter of 2008. I know that was a little early, and we began talking about a secular bull market developing in march of 2009 just based on where the negativity was, and id love to just remind investors that for all intents and purposes this has been a bull market that everybody cant wait to try to diagnose its end. Its just unbelievable. And bear markets dont occur when everybody is looking for a bear market. An august pullback was really comprised of data points and knowledge we already knew, so we felt pretty confident that the august lows were the lows for the year and we still feel very confident with respect to our 2250 target for the s p 500 for the end of the year. What gets us up to 2250 though in terms of sectors . Its a great question. Here is what we will say from a sector standpoint. You know, we had some selloff and some negativity with respect to health care. Health care this week has come back. And growth is scarce. Growth outperforms and every day on your network you talk about kind of the same stocks and people chasing up the same stocks. So its health care. Its consumer on a near term. From a longerterm perspective, we remain overweight financials and technology, but overall, melissa, this is very important, the market and Institutional Investors in general have underperformed pretty dramatically again this year and as prices continue to levitate higher, we believe a quote, unquote, game of catchup is going to occur. Even in the last six weeks of the year and markets are going to head higher and remember, too, we sold the rumor that the fed was going to raise Interest Rates. Now were buying the news and the eventuality that raids are headi heading higher and we think people are becoming more comfortable. I want to drill down on health care. That had been a favorite year and now were looking at the subsectors in health care coming under pressure with United Health saying theyre suffering losses from the Affordable Care act and that really brought down the insurance sector across the board to big pharma. There are questions about drug pricing and biotech has been out of favor as well. So when you slice it up that way, it doesnt seem like there are many positive catalysts. There are only headwinds here. Well, they are headwinds because, number one, we saw a big move in health care at the beginning of the year. Number two, if you tyme take a look at pricing and where Earnings Growth is and remember as i said when growth is scarce, growth outperforms, we think we will see a big bounce. When you look in institutional portfolios, the majority of our clients have big tracking areas in terms of biotech and drugs, meaning they have pretty big positions there. Were officially market weight. We think the stocks on a nearterm basis may be a little overdone. Thats why we see a little bit of a bounce. Because of those high tracking errors, what does that mean . We think investors have a little too big of a position there is they were squeezed on the downside and as we start to see a recovery, well see some pretty big moves on the upside as well. I have argued that i believe, just my own personal view, that oil is the single most important thing to the stock market right now. Am i wrong . No, you are right with respect to the international markets, especially canada where, you know, we work for a Canadian Bank and oil price explains about 92 of the move in the canadian index. In america the number one the number one variable with respect to the stock market is clearly the consumer and consumer stocks are working pretty well. Oil prices, remember, it usually takes about four quarters of Lower Oil Prices to really hit the consumer and hit the manufacturing side. We are four quarters into lower oil and i think from a fundamental perspective its finally starting to hit. Now, longer term as oil and the Energy Sector overall, we believe is hitting a bottom and bottoming out, thats going to be very good for the stock market because we begin to feel better about whats happening with respect to Global Growth and just the solid if ication of the oil price in general. It was a real pleasure. Thank you for coming on. Have a great weekend and well talk to you soon. Thanks, brian. A couple krts for oil to look at. The december contract expires today. And its taken a little bit of a dive into the close. You can see the december contract for oil is actually down about 0. 2 . People are obviously rolling into the january contract. That contract is higher right now but it should be noted, melissa, oil was higher earlier today. Weve seen some weakness as we headed into the close. Letsgate back to stocks. Lets bring in the trading nation team. Chad and craig. Chad, first to you, lets talk broadly. The s p 500 a pretty solid week this week. Do you think this strength will continue into years end . So we went underweight the s p 500 recently. We believe that Earnings Growth is going to be lackluster in 2016. Perhaps 120 per share. Way off of consensus. Thats on the back of also lackluster revenue growth. Global growth is going to continue to decelerate. That will be the general thematic for 2016, so we would be considerably underweight the s p 500 at this juncture. Craig, chart the s p 500 for us. Does it look different from a technical perspective . For a technical perspective, brian, it looks pretty good and i would not be underweight equities at this point in time. When i come back and i look at the chart on the s p 500, the secular bull market weve talked about confirmed in 2013 is still very much intact. Weve been in a trading range at the upper end, 2135. Lower end was 1865. All weve been doing is consolidating in between the levels right now. This week was a really important week technically. We came back to the zone of 2020, 2040, found good support. Rallied off of it. I think were setting ourselves up for certainly a strong move into year end. 2135 at year end is our call. Wed remain strong in here and we think its going to continue on in 2016. If i may add, you have a forward looking multiple of 17 times next year. This is pretty lofty. Especially with operating margins at a somewhat extended from a historical perspective. As Global Growth decelerates and we think Global Growth is going to be around 2 , 2. 25 , it provides vulnerability for investors. This technical bounce here should be sold in our opinion. All right. A different view there. Thats why we do it both ways, fundamentally and technically. Chad, thank you. Craig, appreciate it. For more trading nation head to trading nation. Cnbc. Com. The market was in love with facebook this year. The social media giant up 38 yeartodate. Now facebook is rolling out a new feature to help soothe the pain of brokenhearted users. Well tell you what that is just ahead. Plus five analyst calls that are moving the markets. Its called street talk and its straight ahead on power lunch. This is more than just a town. This is our home. And Small Business saturday. Is more than just a day. Its our day. To shop small at the places we love. With the people we love. For stuff we cant get anywhere else. And food that tastes like home. Because the money we spend here. Can help keep our town growing. On Small Business saturday, lets all shop small. For the neighborhood, the town, the home we love. On november 28th, shop small. Welcome back, everybody, to power lunch. We are again live at the Nasdaq Market site today. Both of us here. Check out this rock. Okay, this is thought to be the biggest diamond found in more than 100 years. It was unearthed at a diamond month in botswana. It weighs more than 1100 carats. It measures 2. 5 by 2. 2 inches. Thats a big rock. What would you do with that . Put it on a big ring . A big chain around your neck . A headlamp. Its gorgeous. It belongs in a museum. Totally a side note because i follow some of the african exchanges, botswana has been rocking so now it really is rocking. The Botswana Stock Exchange has done well, thats true. Rock and rock. Diamonds are forever but not all relationships are and facebook has a cure. Theyre announcing a new feature aimed at the brokenhearted. You can stop your exs posts and pictures from popping up on your feed. It will be tested on mobile devices before the company decides to roll it out to all the users. Its almost like muting on we were discussing this. Muting on twitter. I dont have to unfriend anybody and create more controversy or tension. I can just sort of not see. So we go out, you dump me which, of course, you would. Which i definitely would. You dump me. Im brokenhearted. Were facebook friends. I dont want to know youre on a new date right. But i dont want to unfriend you to set you off so i mute you. Mute is a great twitter feature. I have gcome to embrace the mute. If its an ex, just unfriend them. Have some onions and unfriend them. Stand by your man or not. Stand by your decision to dump the man. You might be wondering why we are showing you ibm. Its time for street talk and thats our daily look at the analyst recommendation stock calls we think you need to know about. I love this board you get to use here. Okay. The first stock is ibm. Katey bar the door because we have a bullish analyst note out. You dont get a lot of bullish analyst notes on ibm. Jmp securities starting coverage with an outperform and im just going to write because i can, 167 target. Thats about 20 upside. They say they are aware of the challengesi bm faces. They understand have investors are frustrated but sentiment has gotten too negative and eventually ibm will lead in all kinds of different categories and that will ultimately be a positive for the company. Those are very small percentages of revenue. They dont really contribute just dont touch this. You knew i was going to screw the screen up. Were still on ibm. Its a good day for old technology. Intel also getting an upgrade from jmp securities. These are all ones were watching. The second stock, now its time for this, william sonoma. A new 52week low, weak margins, weak q4 guidance. Cutting the price target to 70. Are you going to write 70 . Can i. Pottery barn has moderated and recent results have not supported the premium valuation. The an linss see downside into the 50s which is not even on here. 50s is somewhere down here by november 20th. Here is the thing. Looking at all the different analyst price targets, most of them are pretty lofty. 70 is the low. Most are in the 80s. As weve said, analysts will have to start coming out and cutting the thing or pounding the table saying buy the stock. Do you want to do the honors of moving the screen . Third stock bed, bath beyond. Cantor fitzgerald throwing in the towel and the bath mat and the washcloth. Analysts cutting it to a hold and cutting the target to 53. Why am i doing this . Because you can. Because i can. From 77. Almost a sell kind of because its below where the stock is now. They see a continuation of couponing, heavy discounting and they think major investment is going to have to be made in ecommerce. This stock has already been crushed this year down 25 . Just lately, too. I know. Ugly for bed, bath, beyond. Its a rare day you dont have a 20 off coupon waiting in your inbox. Were seeing competition from Big Box Stores like a kohls and jcpenney and also amazon prime. Why does it do it every time i touch it . Just stay away from the board. Fourth stock, sun edison. Another new low for the stock as jpmorgan goes to a neutral with a 5 price target. The analyst says the stock is somewhat undervalued and the assets are high quality but the situation is complicated, fluid, and ricky so we move to the sidelines and these are the analyst words, deeply disappointed we did not do so ahead of the death spiral. Their words, not mine. The analyst said they can avoid bankruptcy and remain liquid through 2019 but it will be a rough slog. Every analyst has been wrong on that part for the fomost par. The under the radar name, the uk based those concerns are being overdone. That target price implies an upside of 80 . Very, very aggressive by piper jaffray. Brae breaking news with dom chu. 1. 9 million shares of chipotle have traded so far just to give you an idea of how much volume that is. The average daily volume is 630,000 shares. Ship pot lay does have a statement out today dated today with regard to this e. Coli except. They continue to work closely with state and federal health officials. Also, that additional cases are not unusual after the first incidents have been reported. They are saying they have taken aggressive steps and that there have been no new cases reported in either washington or oregon since they put their plans in place to kind of clean those particular locations. Also that they offered a statement saying that they believe we take this incident very seriously, says steve els, the chairman and coceo, because the safety of our food and wellbeing of our customers is our highest priority. We offer our sincerest apologies to those who have been affected. This coming in a statement from chipotle dated today referencing this idea they have been working with the cdc and other state officials, health officials, with regard to this particular story. Shares of chipotle down by 8. 5 in the trading so far today. You can see here near the lows of the day so far, melissa, brian. Back over to you. Apologies if i missed this, but did they say at all whether or not theyre going to close stores at this point . At this point they havent said anything. They do reference the fact that there have been reportedly additional ones but they reference the cdc report specifically. They say that the cdc informed chipotle to identify six additional cases in which initial testing matched the e. Coli strain involved in washington and oregon all they do point out one of the individuals has no known link to chipotle. Five individuals did report eating at a chipotle including two in california, one in akron, ohio we dont know when this happened. If these people have gone to chipotle, gotten sick, already been involved with the cdc and the cdc produces a report, is it possible these cases were weeks ago . Correct. And i think thats what chipotle was trying to say. Their point in trying to say this is its not uncommon so see these types of things surface even after this initial wave happens as people then investigate and trace back where they thought they actually got this from and again but again mcdonalds had this issue a couple years ago. Chipotle acknowledged about the five individuals that did have ties to chipotles in specific locations either in california, ohio, new york, or minnesota. So youre right, again, to kind of put this whole kind of thing in context, there is nothing to suggest that any of these things are imminent or it just happened yesterday, so to speak. Just this idea that the cdc has issued their report. Chipotle issued a report dated today so concurrently, if you will, with this particular cdc report about whats happening, but, again, traders are trying to digest all of this and given the fact that chipotle shares are 9 at this point we are trying to figure out exactly how traders are going to view this. Were still watching jacks as well. Its the unknown. Traders dont like that. Dom, thank you. I think mcdonalds had this issue a number of years ago with the big and tasty, the lettuce or something, people out there will correct me if im wrong but a long time ago. Power lunch is back in two. All right, every friday melissa and i find stocks, not recommendations just names that caught our eye. Big moves. Whats yours . Netflix, up 19 . So far this week. Its been a really nice run, really gained a lot and theres some thinking that maybe after the terror attacks people are going to spend more time at home. Nesting. Watching things, nesting, i dont know, but this is a big no of in one week alone. My stock of the week is jm smucker, a little ohio engine that could, the stock no one is paying attention to it is up this week, this month and this year, known for coffee and jelly of course but it is being powered by pet food. Pet food. No one even knows about this business and it has been doing really, really well. By the way, melissa, since this is your house, snuckers do you like strawberry . I do now, brian. This is a house warming gift for the nasdaq. Thank you. A smumer strawberry. You didnt get me pet food. Smucker. All right. We will keep an eye on cmg, we happen to have one of the leading branding experts in the world with us. We will talk about what they need to do and more on other retailers. Sometimes you get lucky in tv, we booked Charl Koppelman one of the leading branding experts in the world to talk about retail and we might still, but i think with this chipotle news we have to hit that as well. Were lucky to have charles inhouse today. Ply pleasure. A late breaking situation on this chipotle thing. If you were going to advise them what to do, what would you advise them to do . Id advise them to own it, to fix it and communicate it. What if they dont know enough to do any of those things . They have to know enough at this point given whats gone on, they know whats going on. They need to really stand behind it, say this is what happened, own it, this is what were going to do to fix it and the key is to communicate that to the public at large. What should they do financially offer people in terms of compensation or anything like that . Theyve got lawyers, theyve got people that will advise them as to what they need to do, they also have to look at what they should do and those are things that people have to sit with them and explore. Youre literally asking them to say we may have made people really sick. You have to own it, you have to fix it and communicate it. How do you convey the fixing it . Change your marketing to we are the cleanest Quick Service restaurant in town . I think we have to say we recognize this has been a problem its here, there and here and thats all been taken care of. This is a little different for chipotle and opposed to another fast food restaurant. Part of chipotles brand, what theyre known for is their fresh ingredien ingredients. 100 . Wont this hit them harder than if mcdonalds had the same problem or wendys . Well, its interesting. You might expect it more from a mcdonalds. Chipotle has such a rabid fan base that love their product, they will forgive them if they do the things they need to do. Theyve got to own it, get in front of it, theyve got to figure out how to fix it and they must communicate out. So within the fast food Quick Service space who should be chomping at the bit, no pun intended at this ms. Step for chipotle . Whats the opportunity for another player in this space to take advantage of whats going on there . An opportunity is for another competitor in that specific space to do more advertising, to speak about their great environment and speak about their offerings and their food. But, remember, chipotles fans, as i said before, theyre rabid. It makes it easier to fix. Most definitely. We were going to bring you on to talk about retail. We will get you back soon. No problem. Charles, thank you. You got it. We will have much more on chipotle, we will have the trades. This is not the first time that chipotle is dealing with an e. Coli break out, this could be a bigger deal for the stock as were seeing in todays session. Thats tonight at 5 00 on fast. It was great to be at the nasdaq im off all next week. Have a good week off. Closing bell starts right now. Welcome to the closing bell on this friday, im kelly evans at the new york stock exchange. And im bill griffeth. Big gains for the stock market for the week. Now, if the s p closes at or about 2089 and we are a little less than 3 points away from that this will be the best week of the year for the boarder market. We will see whether stocks can hold on to these gains for the close. For the dow we are well off the highs, it had been up 182 points at the peak, now up just 67. This is an expiration date. It is the third friday of the