Im tyler mathisen. Three hours left in the trading session. Stocks are really holding in the red, but really not by much. Look at the numbers. Very minor moves. Checking the names you might own, apple the only one on this list here in the green. And it by half a percent. Alphabet or google, microsoft and jpmorgan off fractionally. Im michelle carusocabrera. The imf says it is lowering the 2016 u. S. Growth forecast again, blaming economic setbacks in the first half of the year. Twitter shares under pressure following a downgrade at loop capital. More on that call ahead. Durable goods orders Holding Steady in august. Economists were expecting a drop. Brian . We have a big two hours ahead. Hi, everybody. Im brian sullivan. Lets start with the banks. Steve liesman and woolford frost are here. Lets listen to what fed chair janet yellen just said about u. S. Banks. We are undertaking a look, comprehensively, not only in the consumer area, but compliance generally because there have been a very disturbing pattern of violations, they occurred in the mortgage area in Foreign Exchange trading, in many different areas. Sanctions violations, libor. So steve liesman, i put it to you, steve, is this a thinly veiled or not so thinly veiled basic messager signal to lawmakers, hey, start digging into banks . You mean lawmakers or regulators . Janet yellen at the recent News Conference said that it is go to be a new focus of the fed supervisory work it does. It is because of all of the violations that are out there and their concern is that Senior Management is not well informed as to what is going on at the banks, not prepared. She just actually said another thing, brian, we havent had a chance to cut yet, but in the hearing still ongoing, she said that Senior Management should be held accountable when asked about wells fargo. Yeah, exactly. That was something a lot of people picked up on. The question is whether it is more than just accountable. We heard there will be forfeit of pay. Thats with Senior Management. Is there something more the oversight of these banks should be on the oversight committees. Even though the ceo is giving out pay this took five years to be noticed and stamped out. Thats a long time. It questions the overall size of the bank. The one caveat is it is a different issue when we talk about too big for the banks than in the past. In the past, it has been should there be investment banks and retail banks . Wells is largely just the retail bank, so it is absolute size of it. Being held accountable sounds like send somebody to jail. What is that code for in regulator speak . Does that mean giving up pay . Does it mean i believe the it sounds to me like giving up pay more than it does. But also, look, i talked to dan tarullo, the fed governor, and i asked him about this notion of banks being let off the hook essentially by being able to plead no contest or not admit guilt and pay a fine. This is a matter for the justice department, but in general he said when it gets to that point, he supports the idea of holding individual managers responsible. To see if banks can hold up it a massive financial crisis. The stress tests were first put into place to test to see if the banks could withstand a financial crisis. What do you think the fed has in mind when they say massive financial crisis . This is going to lead to a significant amount more in capital on their balance sheets. Right. So theyre seeing if the banks can withstand it and a question of whether or not they have enough capital on hand. A slight relaxation as well, theyre going to incorporate the notion that in a crisis, the banks would be slashing dividends and some other things. Holding up a pink card there. Is that like a stop talking thing or no, if only it was that easy. Thats like soccer. The next question, garrett gave janet yellen a hard time about Lael Brainard having donated to the campaign. Delivering alpha, running ads from delivering alpha that show paul singer saying fed independence is basically a myth. Central Bank Independence is a myth. Their credibility under fire here. To me right now, michelle, the credibility that is under fire is of those like donald trump making accusations. As far as i can tell, he offered no evidence for the politization of the fed and Lael Brainard donated. Scott garrett went further and said there were contacts between the Clinton Administration and Lael Brainard. Thats a story were trying to run down now. Clinton administration, you mean the clinton campaign. That was not freudian. To correct himself. But the issue is that is that he has not offered evidence on this. In my world, when somebody comes forward, especially a congressman, with charges like this or republican nominee there should be evidence behind it. I would call it evidencebased accusation. Do we know of any other instances where a fed governor or a fed Bank President has been a donor . I do not. Not common practice at all. What i asked was do we know of other instances . Paul singer says it as well, right . Donald trump is one thing. This idea that theyre going to keep Interest Rates low for reasons that he doesnt think are appropriate at this point. So heres the thing, right . The guys come forward and say, we think the economy is terrible. And yet they say the fed is keeping Interest Rates low for political reasons. They think the low Interest Rates hurt they think the low Interest Rates hurt the economy. They miss allocate investment, it is holding back the economy. Thats why they say that. Not nearly as contradictory as a lot of people think. Very quickly, can we switch gears. I got to imagine, even if youre john stumpf, every ceo in the United States, you go home, you get grilled, go home, look in the mirror and you say, thank god youre not deutsche bank. How bad is the situation over at germany . Different situation. It is a profitability issue, more capital issue. Earlier in the year, Big Questions about can they really earn profits again and whether that would be selffulfilling. The most recent moves in the share price, much more focused on capital, how big is the feign going to be from the doj and can they afford it. The question of whether it will be a state bailout, people have come out very, very clearly to say thats not the case, not being discussed. And thats why we had a bit of a bounce. U. S. Government through a fine could ostensibly put them out of business. Not bankrupt, but destabilize the biggest bank in the third biggest economy. It would cost a lot of money to raise the capital. Still go to market. Yeah. I think it is not a question of putting the bankrupt outright. Fine line. Thanks. Very fine. Thank you. Are the banks getting buried under a mound of regulation . Listen during the opening remarks of the yellen testimony. The fed stands at the center of dodd frank codification of too big to fail. It occupies the board rooms of the largest Financial Institutions in our nations and decides how they can deploy the capital. Increased regulation making financials uninvestable . Lets bring in Casey Matthews with umb bank. You dont have to look far. Wells fargo ceo will return to the hill tomorrow to testify in front of congress. So lawmakers are looking carefully at the banks now. If there is a hillary Clinton Administration, there could be a tightening. A deepening of dodd frank regulation and you have the increase requirements of the tweaks of the stress test. What is the impact on the Banking Sector on top of a flat yield curve . Clearly regulation is negative to any industry. We all believe in regulation. We should have some regulation, but overregulating any industry will be negative for shareholders and stock performance. The bottom line though, i dont think this is as big of a deal as one might think. Banks are prepared for this capital constraint change. Right now, you have 12. 5 , the regulation is at 6 . In 2008 at 9 . Most of the banks are prepared for the potential change. What it might do, how it might affect investors is will hinder the way banks can deploy capital. Perhaps they cant repurchase shares or increase dividends or reinvest in capital expenditures. When you think about mobile apps, Online Banking and cybersecurity, that is paramount to the banks. That sounds look a terrible scenario. Are you invested in the banks . Are you an owner of banks at this point, even with the threat of them being handcuffed essentially in how they spend their capital . We do own some banks. One, for example, is morgan stanley. This is less asset sensitive than many other banks, capital sensitive since 50 of the revenue comes from Wealth Management business. We own Regional Banks. You heard janet yellen talk about the proposal that there might be a twotier system. One level of constraint for big banks and another level of regulation for smaller banks. So there could be an opportunity in small Regional Banks at this time. What is critical is some of this, i believe, is nothing more than noise. Because the banks as i mentioned are ready for it and the critical driver in earnings is Interest Rates. If youre in the camp that sooner or later we get some increase in Interest Rates. I think the tide will come in and the tide will lift all the votes. Casey, thanks for your time. Appreciate it. Casey matthews of umb bank. During the financial crisis, we talked about level of regulation that would happen in the Financial Sector and said theyre going to end up like utilities. And were there. Utilities or airlines. Exactly. Make you wait and then never give you your money back. The feds decide their profit margins, when they can issue dividends, what theyre allowed to charge. Just make it a utility. The big behemoth banks and the more modest sized ones. Lets be fair. No one is crying for the banks. The banks are bigger now than prefinancial crisis. And to your point, tyler, we have to distinguish between mom and pop Regional Bank and Trading Organization like Goldman Sachs which is a bank from an viewers viewpoint. The business aint what it was. Thats for sure. News alert in the bond market now. A lot of action. Seven year notes up for auction, rick santelli, how much of the government has to pay to borrow . They had to pay pay about 1. It started to move around a bit, right as the dutch auction ended. How does that fare . All the pricing was about right. All the other metrics, 2. 47 on bid to cover. Darn close ten auction average, 59. 4 on indirects. 13 is ten auction average on directs. 10. 5. A smidge light. I gave it a c in terms of grading demand. Wasnt a spectacular week for auctions. All basically average or slightly below. A lot different landscape approach into the treasury auctions by investors than we had a couple of months ago where they were falling over each other to jump in. Back to you. Rick, thank you very much. Still ahead, hes the key architect of president obamas path to the white house. And now hes in charge of ubers path to prosperity. A lot to talk about including president ial politics and ubers Surprising New partnership with david plouffe. He joins us next. I know youre my financial advisor, but are you gonna bring up that stock again . Well you need to think about selling some of it. My dad gave me those shares, you know. He ran that company. I get it. But you know i think you own too much. Gotta manage your risk. And youve gotta switch to decaf. An honest opinion, even if you disagree. With 13,000 financial advisors, its how edward jones makes sense of investing. We cant go back to the years of devastating cuts to public education. Exactly why i urge you to vote yes on prop 55. Prop 55 prevents 4 billion in new education cuts without raising taxes on anyone. And theres strict accountability in prop 55. With local control over School Funding decisions. And mandatory annual audits guaranteeing the money goes directly to our classrooms. Not to bureaucracy, not to administration. So vote yes on 55. Because it helps our children thrive. Uber raising eyebrows with two new initiatives. Uber teaming up with sears, hitching sears rewards program to benefit riders and drivers. Riders who link their uber account to sears loyalty plan will receive up to 2 in loyalty points for every trip they take. With new drivers receiving up to 1,000 worth of loyalty points at sears. Second, after acquiring the selfdriving truck startup auto, uber is in initial moves to into the long haul trucking business, fully autonomous trucks remain years away, uber and auto, i think thats funny, hope to expand their navigation and Mapping Technology as they work towards driverless trucks down the road. Because it is spelled otto. People listening think youre saying auto. Uma, oprah. Otto and uber. David plouffe is with us, key architect for both of obamas president ial campaigns. Well talk politics in a minute. First, brian wants to start with your companys path to profitability. Yeah, welcome to power lunch. Youre probably not going to touch these with a ten if the pole, but ill ask them report does ubers Capital Position allow it to sustain such losses and two can you become profitable without the advent of Driverless Cars . Youre right. Im not going to touch them with a ten foot pole. We have been very fortunate to have confidence put in us by investors. That let us experiment very aggressively in autonomous, trying to bring our Car Pooling Service to as many place s aroud the world as possible. Whats next . Thats more of what were doing. There is a lot of people in the United States and around the world who have not used uber, not sure what it is. You mentioned the sears partnership. Were experiencing with a lot of different partnerships to bring this to as many people as possible. Final question, i appreciate you going that far. Do you think you can sustain Investor Confidence you referred to with continued losses . At some point the money runs out. Everything that happened in our platform, every ride, thats a physical transaction, financial transaction. You know, the markets in this space and in other spaces have been pretty frothy. But were building towards an incredibly sustainable business. And what is interesting for my stand point is it works everywhere. Every continent there are people looking to make more money on the drivers side and on the riders side. It is fast. Our founders are the first ones to tell you they didnt realize this would work everywhere. Were still in expansion, were in investment, but it is a terrific business. Are you simply not charging enough . No, listen, i think, again, our ceo talked about this, were profitable in many of our markets. We want to get that price, something that works for the driver, but we want to bring this to as many people as possible. When uber started out, it was a black car service, but it was something that does skew more higher income and younger and what you see now is many more people, uber pool, you arent just car pooling. You take that in conjunction with Public Transportation and it is saving people time and money. Thats whats fascinating about this. Our base is starting to look like the population as a whole in every city we operate in. To politics. Your assessment of the state of the race. There are some similarities to this race to where we were in 2012 where, everybody thought it was a dead red heat. I think many republicans thought romney would win. I think heading into the debate that Hillary Clinton had a very important lead in terms of who has the best way to get to 270 electoral votes. I think she has a higher vote ceiling. I think trumps ceiling, maybe 44, 45, and i think hers is a little higher than that. She did well in first debate. No question about that. Ive been on the right side of debates and the wrong side. It is much better to be on the right side. I think given what i just said, donald trump has to do something to change the trajectory of the race. If it were held today, he wouldnt get 270 electoral votes. I think the next debate, these debates, even with technology, and data, and all the advances in politics, these debates still matter a great deal. We had on yesterday larry sabato. I didnt see it the way he saw it. Listen to what he said. Ive watched repeatedly every single president ial debate since they started in 1960. And this was the most one sided debate ever. It doesnt even come close. Doesnt even come close. Did you see it that way and you referred just a moment ago to the first debate between mr. Obama and mr. Romney, which was widely perceived as a big win for mr. Romney. Did you see it as a big win for mrs. Clinton on monday night . And what would you you had to make fixs going into the second debate for mr. Obama. What are the fixes mr. Trump needs . Well, i do think it was incredibly lopsided. I would compare it to our loss to romney in the first debate or our win against romney in the third debate, similarly lopsided. Bushs first debate with kerry was not a good one for bush. I think it was in that neighborhood. If all it did was make democrats and the members of the socalled Obama Coalition more passionate about Hillary Clinton, i would be satisfied. This next debate is fascinating. I think for the American People it is the most interesting debate because it is a town hall with their fellow citizens. Having prepared for two of them previously, it is difficult. The citizens are going to ask questions differently than a journalist might. You have to really relate to the questioners. So i dont think Hillary Clinton or donald trump are necessarily the most gifted retail politicians. This is a very intimate room. And so i think it is going to be very interesting. I think for Hillary Clinton it is a great opportunity to maybe bring a more heart into her answers, and really speak about why shes doing this and take the concerns of those questioners to heart. I think for trump he just cant have the last part of the debate, you know, again, he clearly i dont know if going to tired or he got upset, but he was kind of unhinged. I thought he got off to a strong start. Hard thing to do. Yes or no, does he dare go at the clintons marital history . In that town hall setting, with a bunch of American People, i think thats a very tough setting to do that. I wouldnt do that. I dont think he will. I think that would be a big mistake. David, thank you. Appreciate it. It was a dramatic night at yankee stadium. But not on the field. A fan about to propose to his girlfriend, he cant find the ring. To quote every headline on the internet, you wont believe what happened next. Find out. 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. 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I have a lifetime of experience. So i know how important that is. Welcome back to power lunch. Check out stocks of exalica. Some preliminary data on their own cancer drug driving the stock down 13 . Analysts coming out defending saying this reaction is overdone. Thank you, meg. September drawing to a close. Usually a bad month for stocks. Hasnt been that bad. The nasdaq is up this month. So will next month be a stocktober surprise for stocks. End of an era for blackberry. Power lunch back in two minutes. Stand firm and move only when you hear the seatbelt click that says theyre buckled in for the drive. Never give up till they buckle up. Welcome back to power lunch. Breaking news from the federal reserve. To steve liesman. Charlie evans speaking in st. Louis at a Community Banking forum says the low Interest Rate environment is likely to persist for some time. He points out this leaves less room for the fed to navigate downward shocks should they occur. Points out that low Interest Rates are not just a u. S. Phenomenon, also a global phenomenon. Possible, he says, there has been a reduction in the longterm Economic Growth trend. Mostly, he says, due to demographics. That led it a lower equilibrium or Interest Rate for the economy. Policy may be less accommodative today than it might appear at the low Interest Rate for the federal reserve. L also the risk is lower and the likelihood is that we get to that we get to a 2 inflation target is smaller. Talking to Community Bankers so he says that banks need to plan for a lower for longer rate environment and also says that they need to have the appropriate risk controls in place for that lower for longer rate environment. Steve liesman, thank you. Now to sue herera for your cnbc news at this hour. Heres whats happening at this hour. The Senate Overwhelmingly voted to override the president s veto of legislation allowing lawsuits against foreign sponsors of terrorism. The measure was backed by 9 11 families looking for justice 15 years after the attacks. The bill allows them to sue the government of saudi arabia for the kingdoms alleged backing of the 19 hijackers who carried out the attacks. A house vote is expected later today. The senate is expected to pass a continuing resolution bill later today and send that along to the house. That would keep the government running through december. Flags outside israels knesset are flying at halfstaff as the world mourns the death of shimon peres. He survived as served as president and Prime Minister and shared the Nobel Peace Prize in 1994. He died from stroke complications. He was 93 years old. President obama and former president clinton are both expected to attend fridays funeral in jerusalem. Researchers in boston have linked nighttime hot flashes with mild depression. They say it may have something to do with interrupted sleep patterns. Since daytime hot flashes showed no effects on womens mood. An extra car in the white house drivery. It was the number 18, belonging to kyle busch. The president congratulated him and joked next year he can take that car for a spin, because in a few months he can do anything he wants. Thats the news update this hour. Back to you, brian. He also joked a lot of people thought there would be another bush in the white house. They just didnt think it would be kyle. It could be his brother kurt. Sue herera, thank you very much. Finally a real sport. The new york yankees are normally not at a loss for rings but one ring went missing last night. Andrew fox wanted to propose but lost his ring. Look at that. Stadium workers, fans, everybody pitching in to help and the games announcers became more interested in the ring fling thing than the game. Look at this poor guy. Maybe he can come up with the save somehow. Wait a minute. Theyre smiling. They found it. Thats great. Hes on one knee. That is awesome. Like the hobbits, tossing their rings into a volcano. The story too has a happy ending, the ring was found. In the pants cuff of andrews girlfriend who, by the way, is now his fiancee, because, guys, she said yes. Thank goodness. I know. Imagine if she said no. Her pant cuff . I thought cuffs were out. Thats what i thought. Who wears cuffs anymore . Shes going to wear a pinstripe wedding gown. Good idea. Fun story, though. Great. Shares of you get a little nervous there in that moment. Proposal moment, loss of the ring moment. The proposal moment. Shares of viacom and cbs are higher following a new twist in the viacom saga. Lets bring in david faber. This is a real twist. Later today, perhaps, as soon as later today we may see National Amusements, Controlling Shareholder of both cbs and viacom present a letter publicly and to both companies, requesting they engage in talks designed to bring them back together. They were separated not that many years ago by Sumner Redsto redstone. That letter, drafts of which have been seen already, it appears according to sources, is expected again to be delivered. If not later today, perhaps tomorrow or the next day and then it will set off potentially a series of negotiations between the with companies designed to see whether in fact they can actually craft a deal underwhich not just their majority or Controlling Shareholder National Amusements but all of the shareholders would benefit. That would be a key here. Special committees of viacoms board, already being set up and going out and finding advisers, and cbs, which has yet to actually set up a special committee, will need to do so on both sides. And then they will need to figure out what is in the best interest of their shareholders. Meaning all their shareholders, not just National Amusements. 80 vote that it controls. That will be an interesting case to watch certainly if there is a price at which cbs is interested, what it would be. And viacom, theyll have to make a decision between no deal, not like anybody else can buy them, and or the deal they are presented from cbs. All we heard about this, of course, speculation previously that it might occur. This does appear to be on a tighter time limit than some including myself based on some reporting. Most recently, leslie moonves, ceo and chairman of cbs has been at a number of investment conferences. He said the following a couple of weeks ago. Truth of the matter were a stand alone company, happy with the hand were playing. Going extraordinarily well on our own assets. We are never going to do something that would be bad for cbs shareholders or employees. May not be able to leave it at that for much longer. Really hit the nail on the head when the Controlling Shareholders of each company, same party, and they say you guys need to sit down and talk, youll sit down and talk. Julia boorstin following this story. How does moonves feel about this . David just answered it. How do you think he feels now . Hes made it very clear that it is going to have to be a good deal for cbs shareholders, which includes himself. This has been his company. Hes done a great job in the past decade since cbs and viacom split apart and now a new time pressure on this. Interim ceo tom dooley is stepping down and there is a sense they want to figure out the Strategic Direction of what is going to happen with this deal or not a deal by november 15th because that will really determine who they appoint next. They may not be able to figure out all the logistics of this. Even if it happens at all, it should be sorted out. Interesting to see both stocks rise on the report since it can be argued if youre a cbs shareholder, you dont want to be weighed down by the struggling cable businesses and struggling movie business. Senior management at cbs would have to be reincent ivized, his word, in order to consider this sort of transaction. What do you think that could entail . It sounds like to the top they dont want necessarily a deal here. I think thats a great point. The movement and the stock is somewhat surprising that cbs is doing better than viacom right now. There has been concern among shareholders about what a deal would look like. Why do we want to take on these assets that have not been performing well, whether mtv or bet or nickelodeon, paramount movie studio. Mr. Moonves said things publicly but it is unclear where he would want to go here and certainly one could imagine he would be willing to take this on at the right price. Not just for him, but his shareholders. Is there some sort of quid pro q quo. All of these things will come into play. Why do they want to do this . The original idea was to meli a melissas point, slow growing assets. Now you get i think because les moonves is the obvious person to run the combined company and there is no one else waiting in the wings at viacom. There are various other names they talked about, internal candidates and looking externally, but no to solve the succession issue . In part i think so, yes. Take us out of the stock. You lived there. What are people saying at cocktail parties about this company. I hate to use the term once great. You look at the collection of assets, theyre not the best assets on the air right now in terms of ratings. What are people saying out west behind closed doors . People are saying that when it comes to hiring a new person to be ceo of viacom, they have to get paid a ton of money. And maybe thats les moonves, maybe somebody else. It is a raisky it is a hard job. On one hand, you can take over and say, these viacom assets were troubled when i got here. It is not my fault that the company is going downhill. If youre les moonves and did a great job over the past decade, makie ining cbs then does he to worry about tarnishing his legacy and hes been in this business a long time. He has a great reputation, he and bob iger held up the examples of the best media ceos in the business and there really isnt an obvious choice other than him to run this company. Well leave it there. Julia boorstin on set, and david fabe faber, thanks to you. Earnings season around the corner. Should you brace yourself for a stocktober surprise . Lets bring in dennis garman. Great to have you on set in person. Good to be here. Thanks for having me. Youll allow almost neighbor apparently. We mentioned earnings season. Havent unfolded into the election in october. October is going to be a spooky month. Halloween, but ugly. We have so many new elections coming up, not just here, we can worry about that another time. But elections all across europe, referendum coming up across europe, political circumstances that are going to make october an unbelievably volatile period of time. You have earnings season beginning, but it is the politics that will trump it all to make a very bad trump it all. The Stock Traders almanac, if you follow this kind of stuff, has noted that the october of election years, stay with me, america, october of election years back to 1980 or 1976 has been the worst or one of the worst performing months every four year cycle. Probably the worst. Out of 48 months, it is the worst. Traditionally. Do you buy into that kind of stuff . The hersh family has done a great job looking at history. I think one does a good job by looking at history. Why do you think that is . Im not sure. October has been even before 1980 most of you werent even born by 1980, the first thing i learned when i got into the business was october was always a difficult month. Simply because money back in the 19th century and oil 20th century was very difficult to find because farmers were out of money, they hadnt brought their crops to the market yet, that made october difficult and it is just continued to follow on through. And if it turns out to be ugly, is that a buying opportunity or still a bull market. But can you be down 5 or 10 and be in the confines of the bull market, yes, probably can be. Still going to be a bull market, but what do the market fundamental apart from the political issues and the and around the globe what do the market fundamentals tell you right now. I think the overriding fundamental, whether the United States or europe or japan is that the monetary authorities are continuing to be extraordinarily expansionary. They have no choice. We may not like it. The hard money people are not going to like it. Thats the reality of the situation. They have themselves in a difficult position and cant back up. Theyre going to have to become more expansionary than they have been and the long run and in the end, inflationary. Right now it is nothing. If the theory that Central Banks arent as effective and you can look at here in the United States or look at japan or germany buying up assets, not having an impact on those markets in terms of the moving to equities and corporates, then that shouldnt be a back stop anymore, correct . No thats not the floor that is going to help us. Ill take the other side of that. Eventually, that sort of monetary expansionism it will, by definition, eventually sometime in between sometime and the present can be a chasm of nonprofitability. That has to be expansionary, has to be inflationary and shall be. This year or next year or not. Talk about oil. Yeah. Vittoil, the Worlds Largest oil trading firm, massive i think dutch based, massive company, they have warned that unless we get big Production Cuts, the worlds oil market will be oversupplied, perhaps severely, for another two years. In other words, oil prices arent going any higher. Oversupplied for the next 20 years. So much crude oil coming at us, the ability for us to find crude oil, one of the numbers i like to look at is in the old days, if we had you drill an oil well 20 years ago, 10 chance of hitting. Now 95 chance of hitting or so much better. Too, we send the soda straw down on the ground, used to be you send it down, drill one hole, now 15, 16, because you drill it. Were pulling oil out of places we never thought we could find before, doing it profitably and were not the only country in the world that has fracable land. That exists everywhere. Not been used yet. Have you been on television with your daughter . On television . No, neve ber been on courtney, come on over here. People at home dont know Courtney Garman is one of the producers here at cnbc. Shes awesome. Lows sknows a lot about the. I worked with her since she started as an intern. Shes leaving for Greener Pastures this week. Back south. Back down south. North carolina. North carolina. Never been on tv. There is a first time for everything. All right. Thank you. Thanks, guys. Were going to miss you. Ill miss you guys too. Take your dad with you. Were done with him now. Thanks for having me on. All righty. Shares of blackberry are rallying on the back of the latest earnings report. The Company Announcing a major move that marks an end of an era. Well explain. Commerce, we could focus on bigger issues, like our passive aggressive environment. Were not passive aggressive. Hey, hey, hey, there are no bad suggestions here. No matter how lame they are. Well said, ann. Ive always admired how you just say whats in your head, without thinking. Very brave. Good point ted. Youre living proof that looks arent everything. Thank you. Welcome. So, fedex helped simplify our ecommerce business and this is not a passive aggressive environment. I just wanted to say, you guys are doing a great job. Whats that supposed to mean . Fedex. Helping Small Business simplify ecommerce. Announcer when they test you, stand firm and move only when you hear the seatbelt click that says theyre buckled in for the drive. Never give up till they buckle up. Time for the power pitch, where two cofounders have 60 seconds to convince a panel of experts their startup has what it takes to be the next pbig thing. More americans suffer from chronic pain than cancer, diabetes and Heart Disease combined. Theyll do anything to stop the pain. Im steve. Im jim. Were the founders of restore therapy aimed at reducing the chronic pain epidemic in the United States. Cold therapy and the other services we provide are basic human healers. Theyre repeatable, predictable and effective. We created a unique Retail Experience where over 80 of our first time customers become longterm clients. The antithesis, our locations are fast, fun, social and transparent. Like many great products and services, we reimagined what was once available to a select few and reduced the cost by 50 . In the next 12 months, well perform over 100,000 services in our existing locations. Were in three of the top 17 markets currently and coast to coast by 2018. Welcome to todays power pitch. Im seema mody. You just saw steve and jims pitch. Now lets meet the panel. Joining us is new york angels board member alicia sirrett, nat burgess and david wu. How easy is it for any existing spa to add the services . Whole body cyrotherapy isnt approved yet. I have to ask, is this an evangelical sale . If you freeze yourself at negative 260 degrees for three minutes, youre going to tell everybody you know. People are absolutely looking for this. They want to get off of pain medicine, stop taking antiinflammation pills and a lot of stuff out there that you can google that tells you need to find something that is more sustainable over the longterm. Im curious about the economics of the store. Looking in the range of 200,000 to 400,000. Every store building has the location for two different rooms. One room we can turn out 12 People Per Hour very easily the way we designed the facility. Existing store can turn out 3 million. What is happening to your body when you stand in that chamber, negative 250 degrees. You step in the chamber, your body thinks it is freezing to death. Your body kicks in its natural defenses, does not want to freeze to death. The blood rushes to the core to protect your heart, lungs and brain. When you step out that nutrient rich blood then rushes out to fix the things in your body that ned to be fixed. I talked to two friends who are triathletes and both use ice baths. Their question was, does this work better . It absolutely works better. The difference between an ice bath and this, thcyrotherapy affects more of your body than the ice bath does. What is the profile of people that come most often . We service pro sports teams, but our typical customer is someone very much like me, someone who played sports, someone who has a bad shoulder, someone who has a bad back, and they just want to feel better. We heard what steve and jim had to say. Now we want to know if the panel is in or out. The backgrounds of these founders are spread exceptional. They know that theyre doing here. And chronic pain is also a huge issue and the customer demand shows that there really is a need for this. Ill give them the benefit of the doubt and go in. I think you got something here that is exhilarating, people will talk about it, potentially get hooked on it and you know how to execute. Im in. And david . Im impressed with the two founde founders. At the same time, im humbled by how hard it is to build a national brand. I think this will spit out a lot of money and be a great investment for some people, but i dont think it will reach hundreds of millions of dollars. Im going to be out. What is your reaction . Were super excited to be on cnbc. And were eager to get back out there and get more locations open so we can continue to help people feel better. Thanks so much. Thats todays power pitch. Okay. You heard what the panel had had to say. Are you in or out on cyrotherapy. Follow the conversation on twitter. And for more, visit powerlunch. Cnbc. Com. The end of an era for blackberry. The company will stop making its own phone. A sad walk down memory lane. Whats happening here . This is my new alert system for whenever anything happens in the market. But thinkorswim already lets you create custom alerts for all the things that are important to you. I guess we dont need the kid anymore. Custom alerts on thinkorswim. Only at td ameritrade. Narrator kubo est place come on, this way. E. Narrator . Is in the forest. Kubo wow. Narrator so grab your loved ones monkey dont even. Narrator and explore a world of possibilities. Kubo its beautiful. Narrator visit discovertheforest. Org to find the closest forest or park to you. How many of us, that was our first time. After it, we stayed together for years. But melissa, like so many things in life, it had to end. So after 17 years, blackberry saying it will stop making devices. Instead the company for whom many of us obsessed over sent an all important email from anywhere but the office will focus solely on software. Im sure we have a great story about our first i loved my first blackberry. The keyboard. I miss the keyboard. I do too. I miss the keyboard. That liberation, you can leave the office. That was so as durable as a hockey puck. You could drop it, you could kick it. Never cracked. The battery would last, like, six years. You could throw it at people when you got angry. You didnt have to worry about hacking. So darn secure. Right. Exactly. So but it is a cautionary tale, of course. How many times do we talk about research in motion in the vein of had how could they possibly not be the leader in these devices because people are so entrenched. The same language we used with apple. Bought into their system. Dare i say the greatest collapse of tech market share in a short period of time in the history of humanity. The history of tech humanity is short. Short, but, youre right. Printing press. Coming up, youll hear from arguably the most important man in america right now. Power lunch will be right back. Im michelle carusocabrera. The most important men in america right now because he could end up deciding if we have a Government Shutdown on monday. Hes going to join us. The king of retail, 55 of all online product searches now start at amazon overtaking google. What that means for the retail space. Which generation is down in the dumps the most about their financial future . Well tell you. Second hour of power lunch begins right now. Why do you have look at them yoyos when the camera comes on me . I dont like that transition. That is the way you do it. Lets get a check on the markets with two hours until the closing bell. The dow turning positive in the past few minutes. With the month coming to the close, the dow, the s p and the s p 500 are lower for the month of september. Energy and real estate are your best performers. Telecom utilities, health care are the biggest laggards. Thats how you do it. The music only played for you. Im melissa lee. The headlines, ford issuing two safety recalls, one for the Transit Connect vehicles and the other for the ford focus cars. Theyre not aware of accident oz or injuries associated with the issues. Facebook being told not to collect data on its users in germany. And ubs settling a case. They will pay 15 million over claims it failed to adequately educate and train its sales force. Happening this hour, the Senate Getting ready to vote on a bill to fund the u. S. Government through december 9th. Senate democrats refused to support any spending extension without federal aid to address the water crisis in flint, michigan. The last minute bipartisan amendment to a separate water projects bill that provides aid for flint apparently has cleared the logjam. Joining us from capitol hill is congressman dan kildee of michigan who cosponsored that amendment. Where do things stand now . Has the senate voted and so where do we stand right now . Well, we have one eye on the senate, of course, our focus is on where the house is. But presumably the senate will move forward. The challenge for us is to make sure that we take care of this question of my hometown of flint. We have a bipartisan amendment offered by myself and my colleague that would authorize 170 million in the Water Resources bill to address the problems in flint. A match for what the Senate Passed some time ago, a few weeks back, when they came up with 220 million package, 120 million for flint. If that goes forward, and if we get a strong vote from the house of representatives, bipartisan vote, that can send us into negotiation with the senate on the details, i think that alleviates some of the concern about moving forward with a federal spending bill and leaving flint behind. We need more than a handshake or a promise, a vote of the house is a step forward and were looking forward to that. For those of us less familiar with the workings of congress, as i understand it, what you did was you separated out the flint aid from the socalled continuing resolution that would have funded the u. S. Government past the close of the fiscal year and looking for positive votes, you want the commitment from both houses on that now separated out bill. For sure. It was never actually in the contending resolution, that was one of the struggles. We were working to get it in the continuing resolution and we couldnt get any progress on that. The Water Resources bill was the original goal to get this language in. And so as we continue to press on the continuing resolution, we finally were able to break the logjam. Republicans agreed, i sat down with the speaker yesterday, and we worked out the details and we have a bipartisan effort going forward. Now, we just need to get it through the house later this afternoon. And are you hopeful about that . And are you had hopeful that there will be no Government Shutdown . It would seem like the height of political, you know, hubris to shut the government a month before the election. I dont imagine if we get this done that there will be a Government Shutdown. But you can never predict things around here. My goal is to get help for the people that i represent, and thats what ive been focusing my attention on. How is the michigan race stacking up . A swing state this time. It is a swing state. The polling seems to indicate secretary clinton holds the lead. We win in michigan. We won every race since 88 for the democrats. But we win because we have to work to win. So were not going to take anything for granted. Secretary clinton will be spending time in michigan going forward. I suspect we win but not by accident, through hard work. Youre a member of the House Financial Services committee. Youll hear again from the ceo of wells fargo tomorrow. John stumpf. Today there was an announcement of some clawback of compensation, forfeiture of compensation. Does that in any way lessen the heat he will feel tomorrow . Well, i mean, obviously it is intended to send a message, i assume theyre taking some responsibility and hes taking some having some accountability for what took place. But it is the customers that were really concerned about. The justice system, civil and otherwise, will deal with individuals who did this. But im interested in seeing how this company, how this huge bank is going to deal with the customers that essentially they defrauded. Were going to want to hear more specifics about that. Do you think there are hearings into the failure of regulators and perhaps even lawmakers . This issue came up years ago. It is not only the fault of wells fargo and its management, but everybody else who is now pointing fingers how to roll and allowing it to unfold as well, correct . Well, this is yes, this is one of those times where the capacity and strength of regulation needs to be supported and enforced. So often in the committee, Financial Services committee, the focus particularly on the republicans on the committee are how we can loosen or weaken or minimize the regulatory burdens, but this is the sort of thing we have to keep our eye on. So it is a i think it is a stark reminder of why these regulations are in place in the first place and why they need to be robustly enforced. Are you comfortable with the level of what they did was inexcusable. 2 million accounts. But the amount of money that the individual actually suffered, it was Something Like 2 million across 2 million accounts and they were fined more than 100 million, that came out of shareholders and goes to Fund Government coffers. Is that the best way to do it, especially when it wasnt the it was a Los Angeles Times reporter. Well, you know what, though, that says we need to have Resources Available to do this sort of scrutiny. Here is the point, when a company is found to have done this sort of thing, we cant just say give the money back and youre fine. There has to be such a powerful disincentive for this sort of behavior that it dwarves whatever benefit a Company Might receive from engaging in this sort of fraudulent activity. I have no difficulty whatsoever with a penalty that far, far outpaces the earnings or the marginal money that essentially they stole from their own customers. Congressman, thank you very much. Congressman dan kildee of michigan. Thank you. Interesting story. It is a small amount of money. Nothing. A rounding error for wells fargo. But you unwind it and think about the potential liabilities they may face for from former employees who might sue because they got fired for not meeting sales targets because others who met sales targets used fraudulent practices or scores got dinged. How do you lets say michelle if you lose 100 on a fake account, thats a very different thing and easy to quantify. If somebody opens a credit card, you dont know it, your credit score goes from 730 to 620, how long is that going to take to get cleaned up if ever and how much more are you going to pay to go get a card, go buy a house, how does anyone quantify that and any of us ever had a Credit Report banged, had hit by someone else that was not us, know that trying to reach the credit agencies is about as easy as colonizing mars. Thats the point of not being able to quantify what exactly from a share shouholdesharehold quantifying it. There is reputational damage and then unquantifiable liabilities. Inexcusable, right . Given all this money to this Consumer Financial protection bureau, which is asleep at the switch. Which is does the money go there . A lot of it goes to they get a large chunk of it to help fund themselves, right . This is an institution that is very controversial that has almost no oversight. There should be hearings. Ultimately you got to have people pay with their jobs, higher ups. When is the last time a regulator protected anybody . Look at flint, michigan. Point to me a regulator that protected somebody. Food safety. Food safety. Drug safety. People get sick all the time. You cant prove the negative. It is like things dont happen so theyre doing their job. It is when something happens air quality. I went to chipotle last week and they opened up a fake Checking Account for me. Not true on any level. Growing fears about a potential of a cyberattack to interfere with the president ial election. Could that really happen . Aymeamon javers joining us now. We had two federal officials in two days talking about exactly this threat, concerns about what hackers could do to disrupt the u. S. Election this fall. James comey was on capitol hill today, updating us on what exactly the fbi is doing. Heres what he had had to say. Any hacking in connection with this nations election system is something we take extraordinarily seriously. The whole of government. So it is something the fbi is spending a lot of time on now to try and understand. So what are they up to and what does it involve and what is the scope of it, to equip the president to decide upon the appropriate response. Thats one reason we have to be very careful about what i say about it. That work is ongoing. And yesterday Homeland Security secretary jeh johnson was on the hill. He said that 18 states have now requested help from the department of Homeland Security in monitoring their elections. He said that the dhs has seen efforts at cyberintrusions in the Voter Registration data so far this year. He said theyre offering states access to a 24 7 response center, boots on the ground, and other assistance as they gear up for the elections this fall. Back over to you. Thanks very much. Cyber security in focus next week at cambridge. The Cambridge Cyber summit with mit and aspen institute. Go to cnbc. Com cyber summit for more details. Im very excited to be a part of this event. Lets check on the intraday chart for wti. We saw a big spike in the past few minutes as we get headlines that opec reached a deal to limit Oil Production. And execution in november. So this looks like a deal to actually do something in november, which would be their formal opec meeting, november 30th, i believe. This is according to an opec source as reported by reuters. Were seeing a sharp reaction in the intraday charts for wti and brent crude. They reached an agreement to limit production for november. You believe this . I would be very careful. Nobody believed it. Having now been to an opec meeting. Reuters is great. Im sure this source said it. Exactly. The way it works is everybody goes into a room or talk to the minister of x, y, z company, they may wish something is going to happen. There is a lot of different languages being spoken, you have some translation issues perhaps too. Not saying this is not a real headline, because opec gets together, nainto a meeting, put out a statement, nighttime in algiers, so this is about the time they would 9 30. Announce something. Ive seen stuff that says they might announce something, but this is not the real opec meeting. Even if they say they got a deal, do they have a deal . They could say they have a deal, but may not have a deal. Somebody is buying. Go back to the intraday. Lets look at oil equities. Sharp pop in the s p energy sector. Look at that. It is now higher by 2. 8 and climbing. A lot of the major integrateds, this is a headline, attributing this to an opec source, being reported by reuters they reached a deal to limit production in november. And where, again, what is the level at which they are at record levels. Exactly. What were talking about is that they would likely cap it. We cant pump any more, but we refuse to pump more. That is sort of what theyre saying. It is having an impact on the markets here as you see. The countdown to christmas, three months away, and many of us will be starting or shopping with amazon as amazon gotten so big, it is eating the rest of retail. The shocking stat you want to hear. Power lunch will be right back. 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, or adempas for pulmonary hypertension, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Ask your doctor about cialis and a 200 savings card. Announcer are your children in the right car seat for their age and size . It may be too late to check when youre on the road. [blaring car horn and skidding] fortunately, youre on the couch. At the Marine Mammal center, the environment is everything. We want to do our very best for each and every animal, and we want to operate a sustainable facility. And pg e has been a partner helping us to achieve that. Weve helped the Marine Mammal center go solar, install electric vehicle charging stations, and become more energy efficient. Pg e has allowed us to be the most Sustainable Organization we can be. Any time you help a customer, its a really good feeling. Its especially so when its a customer thats doing such good and important work for the environment. Together, were building a better california. It seems that amazon is dominating the retail space according to a new survey by bloomreach. 35 of consumers turn to amazon first when shopping online. Today, amazon is trading at new levels not seen since the ipo in may of 1997. At the same time, look at shares of nike, tempursealy, sonic. Joining us is tom forte, Vice President of maxim group and kimberly greenburger for morgan stanley. Good to have you with us. Tom, ill start with you. Not only is amazon trading at all time highs. We have visa and mastercard trading near record highs. Consumers are spending. Is this just a case of this is more evidence that the consumer is spending online versus the beleaguered bricks and Mortar Retailers. This is another example of the Consumer Spending more money not only online, but at amazon. If you look at amazon and talk about their sphere of influence, amazon into new categories, think of their amazon fresh effort in grocery or what theyre doing in apparel, and the idea is they have all these incremental efforts to drive more market share and take more wallet share for consumers and i think all these data points are pointing to that. Is it possible that people are sort of showrooming with amazon . Theyre doing their product search there and going to the best buy after they have gone the scan of prices across the online universe . Were actually seeing the share shift online among the traditional brick and Mortar Retailers as well. Brian nowak published a report this spring where we did a deep dive, specifically into the Apparel Market which is one of amazons big push areas and what we discovered is that the Department Store share of the Apparel Market over the last ten years has fallen by 30 billion. And amazon and the other Internet Retailer share of the u. S. Apparel market has grown by 28 billion. The share shift really looks to be coming straight out of Department Store pockets to the Internet Retailers and the number one leader there is amazon. Can i take the other side a bit. I recently had dinner with an executive at a major retail operation. He said no doubt that amazon is a threat. But are we, maybe the media, the internet, all of our hype, overstating amazon influence because when you dig in, Online Shopping is only 8 . Thats all Online Shopping. So amazon is smaller than that. Were a long way from the brick and Mortar Retail death, are we not . It is shrinking, but 92 of all shopping is still done in a store. So that 8 number i believe is of all consumer expenditures, all retail sales. There are certain categories where there is low penetration online. If youre looking specifically at the Apparel Market, we are in the midteens, around 15 of all apparel expenditures are online at this point. Thats a high number. Had a meteoric rise over the last ten years and we expect that to continue to rise. So youre right, 8 of total, however, if you look at cat dpo categories online, the share is really material. What about grocerys . Grocery would be one of the lower penetrated categories as far as online. If you look at uk as an example, they have penetration in the high single digit, low double digit range, you have a customer accustomed to buying their groceries online. Back to apparel, amazon is taking a multipronged approach. If you look at what theyre doing with amazon. Com, zappos, shop bopp, the key for amazon is when they started offering Free Shipping and free returns. That was the key for zappos to sell shoes. I imagine they see more apparel sales move online and this is something amazon is doing very well. I think the playbook is much like what walmart and target did when they started at Grocery Stores to their Larger Stores and i think amazon will do the same with amazon fresh and thats where theyre going to see and potentially see a Tipping Point move more traditional commerce moving online. Thank you, tom forte, kimberly greenburger. Thank you. The s p 500 hitting session highs. Some of the big cap energy names are soaring right now on reports that opec may have reached some kind of a production deal. Oil is spiking. Energy names are up. Stocks are coming back a bit. Well excuse this drilldown into the energy story. This is not a pump and dump scheme. Were back with a barrel of fun right after this. Its been over 100 years since the first stock index was created, as a benchmark for average. Yet a lot of people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Why invest in average . Take a look at where we are on the s p 500. Just about at session highs right now. We started to tick higher after that headline from reuters, attributing to opec sources, the fact that opec reached a deal to limit production in november. Check out how the oil stocks, the equities have been doing in turn. The xle which tracks Oil Companies, primarily integrated Oil Companies like exxon and chevron, thats doing well off the back of this headline, higher by 3. 75 . Oih, oil services etf, thats climbing by more than 4 on the back of the news. We were chatting about some of the fracking plays. Theyre up even more. Any name that will be exposed to worse land, the higher the drilling cost, the more the stock has been hit before today, so if oil goes up, the more benefits them. Does that make sense . If youre an expensive areas, this helps you more, so more of a cushion. The in. Not a the balkan names are benefiting the most. Oasis petroleum up 13 on this news. Reuters is reporting that the production cap is 32. 5 Million Barrels per day. Melissa, you and i were saying it is at a record high. It is not. Opec, remember, four different ways you can report oil numbers. 33. 5 was a number for opec. We had seen. Others had it different. This might actually be a slight Production Cut. However, russia, not an opec member, is producing at a record they would be more than happy to make up any gap in opec production. Theyre it is expected that their output will increase. Our rig counts are up in the United States. U. S. Production is also likely to im not saying the headlines are important. Im saying you got to look at a global number, not just an opec number, about 40 of the global oil market. We have the oil close in a few minutes. Very volatile session here. Stay tuned to power lunch. [click] man youre beautiful [click] im coming back to you [click] oil, lets get right down to the nymex and Jackie Deangelis with more. The headlines moving oil prices into the close. We have a 5 pop on our hands and crude oil has over 47 a barrel. You mentioned what news is coming out of algeria. This is responsible for the move we saw here, but at the same time, traders are very skeptical. This is exactly the kind of job owning that we have seen before from opec. Now, one trader telling me they have gotten what they wanted. They have the price supported until november 30th. This will they meet in vienna. Thats what they want to see at this point. The last headline about talking to some of the nonopec producers for output support, youre talking about russia and the u. S. As you just mentioned. And in the United States here, we have seen about a million barrel drop, but were flat lining now. If prices do continue to go higher, you probably are going to see more output in russia as well. I dont think youre going to see the kind of support from the nonopec members. This appears to be from the trader perspective another tactic from opec to keep the price a little bit higher than 45. And get us closer to 50. Some traders tell us they want to fade this move. Jackie, thank you very much. Right now, lets bring in john kildof. Melissa and i were express something skepticism. You heard jackie and traders expressing a little skepticism. Are we wrong to be a little cynical here . I dont think so. Actually kind of hard to understand the headline at the bottom of your screen. The 32. 5 million barrel ceiling, thats 7 Million Barrels less than what they produced just last month. Theyre pushing the 40 million barrel a day mark now. So this is all coming fast and furious. If there is any truth to this, the price rise is justified. But certainly to date their deeds are not matching seems like theyre leaving out a country. Exactly. Something way off with this number. This is even the algerian plan, the country plan this morning had a 700,000 barrel cut. Jackie just tells us that all the traders are skeptical. Were all skeptical. Youre skeptical. Who is the sucker who is buying . Who buys into this . There is traders that a machine that believes what they see when it comes to a headline. Also, too, a lot of nervousness that it has been consistently rewarding the rhetoric despite the buildup on the ground of production by every country. You are just talking about russia. Apparently they just added 400,000 more barrels this month alo alone. Theyre ramping up a caspian sea project. I have to question the 32. 5 million barrel per day number in particular. But is your 40 number, is that including russia or not . Russia is not a member of opec. Opec has i dont think opec has been Global Production is at 90 Million Barrels, thats just opec. Opec is 40 million, you say. Thats right. 39. But, yes. Okay. Thats substantial. Thats a substantial cut. Thats at 20 with all due respect, i love you, is it that high . Is it 40 . Yes, it is. I checked it before i came on the air. I couldnt believe it myself. But to your point, i cant i cant i cant comprehend thats a 20 cut. I cant comprehend that kind of a cut. In november. Yeah. It is nonsensical, i agree. Thats the difference, though. Thats why i think you may have the number wrong. This is classic reuters reporting, they run with stories like this, could be a 700,000 barrel per day cut, not 7 million. Lets assume th this is all lets assume reuters headline is correct and this is about a 20 cut in production starting in november, john. Where do you think oil ends the year in that scenario . Substantially higher. Meaning what . Youd be up to the 60, 70 a barrel range. If this is right. This represents a big daily deficit for the market, 7 Million Barrels per day, they may be going for it here. I dont know. But, again, it is substantial cut. John, thank you. John kilduff. Currency moving on this opec report. Seema mody is tracking that angle. Were continuing the discussion around opec, specifically the currencies of countries that are dependent on oil. Just look at the canadian dollar. Spiking against the u. S. Dollar at 1. 3 at this point. Even if we shift our focus to the mexican peso, which has garnered the global spotlight, many times seen as a proxy against the election, it is still trading around an all time low. Spiking against the u. S. Dollar on this report of an opec deal. I would also point out that Mexican Central Bank is meeting tomorrow, where the central bank is potentially expected to intervene on the currency front, given the weakness we have been seeing in the peso. Back to you guys. All right, thank you very much. Breaking news out of washington. To john harwood. The congress is in the process of answering the question, will there be Government Shutdown when the current spending bill expires two days from now. And the answer to that question is no, there wont. The senate cleared a procedural hurdle on a continuing resolution spending bill that will get the government to december 10th. That will keep the government open. It does contain zika funding, a hangup over planned parenthood was resolved, so the funding that the administration wants or at least significant amount of it for zika funding in the bill. Also the preservation of that bar on the securities and Exchange Commission report having companies disclose a political donation. That was in existing law. Would have required a rider to take out of the bill. So that stays. Zika funding stays. Government stays open. The senate is going to vote in a few minutes. House may vote tonight. Got it. Thanks, john. Big Energy Stocks soaring right now on the reports of this opec deal. How to trade the stocks right now. Power lunch is back in two. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Time for street talk. The Analyst Recommendations on the stocks you need to know about. We kick it off with the possible disney twitter combo. Skepticism at citi for reasons not to tie up the Internet Media Companies that tied up in the past. They dont do well. Think aol, time warner. Both stock will decline if there is a deal and disney cant actually help twitter. The analyst who covers disney hopes the reports are not true. Sticks to a buy rating. Separately twitter got a downgrade. And loop capital started coverage with a sell on twitter today. Yes. Up next, dillards, Credit Suisse upgrading to an outperform at a 70 target, 18 upside. They like the focus on localized merchandising saying it remains the only regional buying structure in the industry. Put people put stuff in the stores that people that live around the store actually want to buy. Credit suisse cutting macys to a neutral. Tough ride for dillards. The next stock up is alphabet. Underforum with a price target cut to 700. 110 from where we are now. Near term trends in mobile search, theyre underappreciated, more competition from nonsearch services. And ecommerce platforms, were talking about amazon and how people start product searches on amazon. I thought there was a rule about downgrading google. Just thumbing his nose at all the rules. Final stock today, picked a good one, calan petroleum, this is your small cap call of the day. Isi starting coverage with a buy rating and 20 target. Steven richardson says the Competitive Landscape changed. It is leveraging a core position in the basin. The company transforring in aer inially pure play over the last couple of years when he picked peppers by the pepper patch and some results have been good lately. The stock up 5 today on this opec report. One year run. 5. 17 gain for calan right now. This was a 26 26 stock, seven years ago. So target imemplplies 35 upsid cpe. Oil and energy stock surging following a report that opec reached a deal to try to limit production. 32. 5 Million Barrels a day, down a bit. Lets talk about it with the trading nation team. Todd gordon and boris schlossberg. Boris, to you. 32. 5 million barlz a lot. Opec represents about 35 Global Market share. Is oil overreacting or is this the right kind of move . I think if the numbers are to be believed, we have more momentum here. That is a sharp cut. I do think we may have potential for oil to go to 50. I just read an article today about how the oil industry is becoming super efficient. Really standardized all the drilling equipment. You see a lot of the fraccers and everybody else come online quickly and add to the supply and price will top out at the 50 level. Todd gordon, technically, oil, got a little pop today, but what about the longer term or medium term chart. Havent broken anything in terms of technical resistance yet, looking at the xle. Until we breakthrough, the 48 region, were still in a down trend and energies have been underperforming. Understand this is a game changer. But the technicals dont show it. Look at the crude oil market, same situation. They wouldnt show it. It just happened today. Unless youre looking at minute by minute, doing like not yet. Exactly. I hear what youre saying and until crude gets above 48, give us a couple of days, well see what happens. If you see the markets top out at the 48 in crude and 70 in xle. Currencies really didnt move. The dollar is in such a tight range, you really need to see that dollar start to move down to help this trade and i just dont see it happening yet. Yeah. Did move but not as much. The dollar index it has been in a range since march 2015. This thing is so tight. I want to be clear, guys, on the magnitude of the cut. John was on saying 40 million. That may have included russia. Opecs own numbers have been 33. 5 million. This would be a cut of a million if that. So, guys, thank you very much. Jackie deangelis, we had a little push pull with john there a moment ago about the magnitude of the cut. The pure opec number, they dont tell the truth all the time there is third party sources, it is a little over 33 million, correct . Thats correct. Actually the last monthly report from owe peck for september showed the output to be 33. 2 Million Barrels a day. If this reuters headline is correct and they take production to 32. 5 Million Barrels a day, were talking about a roughly 700,000 barrel cut. What is interesting here is that most traders were discounting this. They dont see it as a cut at all. Theyre still saying youre close enough to record production that it doesnt make a huge difference and there is so much oversupply out there right now. Theyre not really internalizing it that way. You can see the market did take this to move more than 5 today. Michelle asked a poignant question, who is getting in here, who is buying . It may not necessarily be that people are buying ragt n ining. The last commitment of traders report showed a 30 spike in short positions because people were not expecting to hear anything out of this meeting. They could have been caught a little bit off guard today. And then you can see traders come in and fade this rally tomorrow because this has been such a seesaw kind of trade. Okay, Jackie Deangelis, thank you very much. Were working on, you know, figuring out what kind of a cut this is going to be. Take it with a grain of salt. What they say is not always what they do. Were going to go to break and i promise you well be back after the break is over. Now the latest from trading nation. Cnbc. Com and a word from our sponsor. Every trader should know that losses are part of the process. So in an effort to reduce your risk and define your max loss, consider using static stop or trailing stop orders. This can help eliminate emotion from your decisionmaking and set you on the path to consistent trading. Sympathy announcer at boll and branch,. Lets bring back in john kilduff. One of the best in the business. John, were talking about that opec Production Cut to 32. 5 Million Barrels a day. Maybe i wasnt clear because you might have thought i was including liquefied natural gas. I was only talking about oil. What do we know about oil to oil . Oil to oil, brian, i apologize, i confused it for you and your viewers, relying on an info graphic i put together for other research. The number is 33. 5 Million Barrels, basically from the posted barrels, roughly, from the opec numbers themselves. Its about a 1 Million Barrels a day. I apologize for that. No need to apologize. Were working on the fly here. Do not sweat it at all. Its still a sizeable cut. It is. It is. And look, they need it. This market is oversupplied. And, again, when i keep talking about this whole situation, what it does show and highlight, brian, the big takeaway, its how high into the corner theyve backed themselves. This whole plan has backfired on them. Theyve had to really kowtow to the iranians in this whole thing. John, kilduff, thank you for calling back again. I just remind all of our viewers who have ever been in an irish pub and they see the sign that says free beer tomorrow, tomorrow never comes. This concerns the treasurer of california who is basically sanctioning wells fargo for defrauding customers. Specifically he refers to customers in california, but as we know, the problems that wells fargo has are actually nationwide. They are sanctioning wells fargo, and this is what these sanctions will include. Suspension of investments by the Treasurers Office in all wells fargo securities, suspension of the use of wells fargo as a broker dealer for purchasing investments by the california Treasurers Office, and a suspension of wells fargo as a managing underwriter on the negotiated sales of californias state bonds where the treasurer appoints the underwriter. So some pretty stiff sanctions against wells fargo by john chang, who is the treasurer in california. These sanctions take effect immediately. They will remain in place for the next 12 months, and the Treasurers Office says we expect wells fargo to comply with all the terms of the consent orders that it has entered with the Consumer Financial protection bureau. So some sanctions once again against wells fargo coming a day before john stumpf is going to be on capitol hill answering some tough questions. Its 75 billion according to the press release, the treasurer oversees a 75 billion investment pool and is the nations largest owner of municipal debt and historically has relied on institutions like a wells fargo to institute that debt. What stands out to me is investment in the Treasurers Office and how much of that pool isfargo. Thats the question, and its a 2 billion banking sanction pool. Wells fargo will not be able to take part in that, either. Its going to be interesting how much of their securities they own. I wonder if suspension means did divestment . With that much banking you do, 2 trillion worth, even if you have only a small piece of it, it could still be significant. Sue, thank you. You are welcome. Up next, check, please. A lot to talk about. A busy couple hours weve had. It needs to be earned every day. Using wellness to keep away illness. And believing a single life can be made better by millions of others. As a Health Services and Innovation Company optum powers modern healthcare by connecting every part of it. So while the world keeps searching for healthier were here to make healthier happen. The conference call. The ultimate arena for business. Hour after hour of diving deep, touching base, and putting ducks in rows. The only problem with Conference Calls eventually they have to end. Unless you have the comcast business voiceedge mobile app. It lets you switch seamlessly from your desk phone to your mobile with no interruptions. Ive never felt so alive. Get the future of phone and the phones are free. Comcast business. Built for business. Volkswagen continues to take a hit. We caught up with the ceo at the paris show and asked how the investigation was going. His reaction might surprise you. Listen. As far as we know, the doj in this investigation is making a lot of progress. And like the public, we hope that we are going to get the result of this investigation as soon as possible so that we can react appropriately. Do you have an approximate date . Well, we would be happy if it were to happen this year. Basically, a christmas present. All righty. All smiles from the head of vw there. What do they face, 16 billion . Is that the amount of the fine . 14. 7. To be precise. I only know that because i put on my Facebook Page that i find it amazing that the u. S. Government fined the two companies almost 30 million. When you go to the german embassy, bring gifts, because remember those 30 billion in fines . Merry christmas. Its official, congress has voted to override a veto by president obama for the first time in president obamas presidency. This is over the 9 11 bill that would allow families of those killed or injured in the 9 11 attacks to sue the government of saudi arabia. That had been stopped in the United States. President obama was against it. He vetoed the legislation initially. The house has just voted to override that. That follows on a senate vote earlier today to override the president s veto, and that means president obama has been overridden hero fishle and offi the rule will lawsuit will be a follow through. The house of representatives agreed this was a bad idea to do this. Its not just about being able to sue saudi arabia, its about suing terrorism for putting our government at risk overseas. Im stunned its the first time a veto was overridden in his term. I just thought given the animosity and the fact the gop has controlled both houses for more than six years, that does surprise me. And the courts will have a lot to say about which lawsuits can go forward. Lets go back to what i presume will lead closing bell, the program that follows us. Reuters says opec will release something tonight. Some kind of Production Cut, maybe about 700 Million Barrels a day. Many other names associated with crude oil is up as well. Melissa, im going to check one more thing. Its integrated to the Service Names but its the fracking names that are seeing an upsurge. Lets switch to check, please and this is tim tebow. The former florida quarterback getting off to a very good start. He hit a home run in his First Official atbat to the cheers of a small group of fans. Before this, he hadnt played organized baseball since high school. Thats fantastic. Its almost like the ball is on a tee bow. Closing bell starts now. Hi, everybody. Welcome to the closing bell. Im kelly evans with the new york stock exchange. And im chris griffin. We just learned that opec has released Oil Production beginning in november. The energy space has spiked on that news. We have news on that momentarily. Extraordinary news coming out here. Its lifting the market
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