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tv   Closing Bell  CNBC  November 24, 2014 3:00pm-5:01pm EST

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appropriate dosing and then the appropriate packaging specifically these products need to be designed to be child proof, tamper resistant. our most valuable asset is children and this is what we do with everything in mind and designed for adults and consumer packaged goods. >> thank you so much for joining us. >> best of luck. >> thank you. we hope you enjoy the show. >> tune in on sunday, november 30th, msnbc. >> thanks for watching "street signs." see you tomorrow. welcome to "the closing bell." i'm kelly e vanls here at new york stock exchange. >> i'm bill griffith. a large caps not moving much. technology's doing pretty well and nasdaq up 35 points, a pretty good gain, as well, today. and the transports, oil's lower again.
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so the transportation average, dow transports up 60 points and i think that's a record again. we have a very mixed market in today's trade here. >> that's for sure. >> four days until black friday. we have some special things planned for black friday. >> yes, we do. >> what if we told you it's here? at least if you want the best deals, more evidence that the calendar is moving up in a fast way in the holiday shopping season. we'll get to that coming up here. >> also more fallout of the epic storm in northern buffalo. the meltoff complicating and bracing for another possible winter storm an coming on wednesday. just as millions are hitting the road, the rails and the air for thanksgiving travel. live reports on both developing situations. >> yes. never easy. also developing, a shake-up at the pentagon. you probably have heard by now chuck hagel is out as defense secretary. we will go live to washington for the latest on that and get
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reaction in a first on cnbc interview with dr. ben carson. many believe he will be running for president as a republican in 2016. all that and more coming up this next couple of hours. >> as mentioned here as we begin this week with all eyes on the thursday meeting of opec, all over the headlines, all over the markets today. even though the dow only off 8, most of the movement concentrated in the names like exxon, under pressure to the tune of another 1.5% helping contribute to the dow in the red. s&p holding up better and the nasdaq up 35 right now. >> pretty good gain there. let's get to the closing bell exchange for this monday. kick the week off with cathy jones, anthony chan, sam stovall, john manly, all of them sitting at our seat there is at post 9 and rick santelli in chicago, as well. sam, this is the week when we turn our attention to pumpkin pie and football and snow.
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and shopping for bargains. what does the stock market traditionally do as we go into this season? >> well, i think right now, bill, that most people are sort of ignoring thanksgiving. i remember growing up my father saying that the bears have thanksgiving but the bulls have christmas. and so i think that a lot of investors are already focusing on the final month of the year and expecting to see the best month of the year and also to see the highest frequency of a gain come through once again. >> it's impressive, kathy, thinking about the strong u.s. dollar and seeing again rhetoric up about currency wars in this environment. when's that hold in terms of implications for u.s. investors here? >> well, you know, i think it means we see record in-flows of capital to the u.s. and expectations of continuing to appreciate and that's really going to make a more u.s. sen trick portfolio outperform particularly on the bond side with u.s. rates above those in
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most other developed countries. >> john manly, sam said, traditionally we see a pretty good month of september for the stock market. are you more aggressive with the portfolio? >> pretty much investing and keep on investing. the end of the year is usually a good time. i mean, the sleepy heads and didn't get it to work and the pensions doing it now and then the early birds come in in january, that doesn't have to go into the stock market and usually does and the fundamentals are good. why shouldn't it go in? >> anthony, fundamentals might be good but going back to the conversation of the quote/unquote currency wars breaking out again, how's different the landscape versus 2011 with the global, yes, disinflationary pressure? when's the net impact going to be? >> i think it's, kelly, central banks have to adjust in the new world where there seems to be some currency competition. the federal reserve already told
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us sluggish growth overseas might impact how they adjust rates or normalize them. if the currency is too strong, that will impact it. but for investors as long as central bankers like mario draghi used the thesaurus he said he'll do whatever it takes and now whatever they must do. that's muse toik the investors' ears. >> do you think, anthony, this is going to be -- i remember when the dollar started to strengthen, people focused and concerned about the negative impact on the u.s. economy and do you think that's possible here or does the lower oil price almost totally offset it? >> if you look back historically, you find a 10% surge in the dollar about a year later does slow down the economy by anywhere from half to 1%. but again, the impact of these lower earnings are very positive. what we have seen is that energy prices have gone down quite a bit. almost more than 80 cents a gallon so that's going to put on
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the pocketbook of households a potential $100 billion. some people say they won't spend it. check out the margin of propensity to consume of the average american. they spend everything they earn and more and i think they'll spend that money. >> rick, you don't trade oil but we have the opec meeting on thursday. anticipation to cut production or not. we have heard some estimates of how much they might cut by but are you guys trying to play a guessing game, especially as it pertains to the impact it might have on say the dollar or treasury prices, as well? >> well, obviously, energy traders down here and there are a lot of people, electronic venues make it so you can hit a button and trade no matter where they are, obviously, but they don't believe saudi arabia should be front and center. if you want to look at what's saudi arabia's stand on something, look at more center refugees in iran or nuclear.
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but with regard to the supply, over supply keeping pressure down, that's all about fracking and technology. i think anything that saudi arabia does is going to be a moot point. i don't know that they can affect the huge amount of supply coming from north america, eventually all the pipelines will be built. and when it comes to disinflation, i'd like to ask kelly a question. can you name a purchase that you or any of your friends or relatives put off because they're worried about half a cent percent drop of pressures? >> any technology gift. >> oh! so a computer prices were falling, that was a horrible thing? >> eh, you know, that's the mind-set, i guess. yeah, i mean, rick to your point -- >> that's the mind-set of central bankers and as long as we continue to promote this, take it at face value. disinflation is bad, it might be bad. for certain financial assets. think about people's houses when they went upside down after the
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crisis. you know what? when you have a lot of easy money out there, and financial asset inflation, yes, many of these prices will come down. i really think that's more of the focus with the fact of all these countries that are hugely in debt like the u.s., like japan portions of europe, they don't want to pay in stronger currencies. >> that's exactly it, rick. as well, part of the reason i find black friday fascinating is seems to crystallize that mind-set of the american public which is that you don't buy until you get the rock bottom deal and its importance illustrates how bargain-minded the public is. >> except buying stocks. >> i don't know. i go online to shop and to me it's black friday online. >> well, yeah. >> that's just the way it is. >> exactly. sam, what do you buy into the end of the year? what do you like? >> i think because you have 73% of large cap value active
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managers underperforming the index, 94% of the large cap growth underperforming the benchmark, you have to stick with the momentum players at this point and likely to be getting the best boost in the coming month and quarter or so. so i would tend to say look toward technology, look toward some of the industrials. even health care is still expected to do relatively well. >> buying those sleepyheads? >> no. fully awake. >> i was going to say, a nice way of putting it, sam. most people say they're wrong, those expecting equities to go the other way, for example, now chasing it into year end and cathy, i was going to ask, what about the fact that china cut rates first time in two years? reuters say there is's more to come. what kind of impulse does that have into year end? >> it's more disinflationary pressure showing up so when the dollar goes up against the yen, the yen goes down, that's
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pressure on the other asian countries like south korea. they're trading parters in asia and as china slows down, they need to adjust and easier to adjust the interest rate than the currency and i think, yeah, a likelihood to try to bring rates down to -- >> what do you think of that, rickster? >> i think the only thing i walk away with seeing what china is doing is not doing it because things are hunky dory in the chinese economy. >> isn't that a concern for us talking about the disinflationary pressures are coming from around the world? >> concern should be growth and not disinflation. everybody's petrified. the growth is below 7.5%. and once again, growth solves everything. you can't create growth in a test tube and then the central banks are doubling down on the notion they think they can. >> absolutely. >> all right. we have do go at this point. thank you, everybody. have a happy thanksgiving.
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>> yes. indeed. >> see you later. we have you, we don't need jack. you love sticking it to santelli. >> rick knows this. i love having the debates. >> i do, too. i love watching them now. >> one of the most important things out there. i'm no jack. we have 50 minutes to go and the dow off about 8 points. s&p holding on to a small gain and faded the resistance levels and keeping an eye on it. yes, there's some sell pressure going into the close but the nasdaq still having a nice day. all right. if you have done some holiday shopping this season, you may be wondering if black friday is already here when you see some of the bargains out there. wall street's top retail pros discuss whether the best deals to be had are already available and if you think the best bargains will be offered on black friday or are you better off shopping for deals another day? that's our vote right now. you can see it's already started. click on
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the live poll is open right now. walter isaacson will join us for the 4:00 hour today. we have a ton to discuss with him. incidents like what happened with uber and an executive suggested digging up dirt on a critical reporter. that's next hour. >> good stuff. take a closer look at your fidelity green line and you'll see just how much it has to offer, especially if you're thinking of moving an old 401(k) to a fidelity ira. it gives you a wide range of investment options... and the free help you need to make sure your investments fit your goals -- and what you're really investing for. tap into the full power of your fidelity green line. call today and we'll make it easy to move that old 401(k) to a fidelity rollover ira.
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people like you. if you want the individual attention and expertise your financial needs deserve, this is your time. this is your private bank. welcome back. black friday isn't here just yet or is it? many retailers offering quote/unquote black friday specials online or in the store. >> we wanted to know if you think the best deals are, in fact, still on black friday or another day. you can vote right now. see the polling is being conducted as we speak. go to meantime, withous now, barbara khan of wharton. we have joe feldman, as well. barbara, i don't know if you heard our reporter from chicago but his comment was for him every day is black friday. he can find a bargain anywhere
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on the internet. i mean, technology has changed the way we shop, hasn't it? >> yes, it definitely has. black friday has some real good deals but for sure if you're looking for the bottom price, find it on days other than black friday. >> do you agree with that, joe? i mean, there's -- it's interesting. there's poll of the street let's just say. 3 out of 4 of them are watching black friday for an indicator. are they mistaken? >> i don't think so. we watch it very closely but it's become black friday week as, you know, in the past couple of years. you can get a lot of deals online on thursday, thanksgiving. i mean, just today, i'm getting e-mails of walmart, best buy, target. grab your deals today. and get ahead of the line. so there's definitely opportunities to jump in on low prices right now. >> barbara, is this -- i mean, a game of cat and mouse. buyers or sellers market?
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are we going to see the kind of deep discounting this season we have in the past when retailers feared that when all was said and done the buyers wouldn't be there? >> in the end, you'll definitely see deep discounts needed to move the merchandise. but obviously, the retailers rather not sell everything at the lowest price possible and a game as you said of cat and mouse. enough deep discounts to bring people into the store but to try to do what they can to preserve their margins. >> joe, when's the one item let's say that you're watching to give to a family member, a loved one this holiday season for that item to go on sale? can you give a personal example? >> well, maybe it's more of a family type of a gift but, you know, ultra hd tvs in electronics -- >> don't give anything away if you don't want to, joe. i don't know if your family is watching or not. >> i don't want to get the kids too excited. they may be watching. we are looking at this type of
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an item. that's a key item right now for holiday season and other things and some of the "frozen" items, obviouslying the cell phones are a big deal, too. >> is that what you're watching, barbara? again, just trying to think through psychologically, what's the trigger point to make a purchase this season and do you expect to see those trigger points hit on this black friday? have they been hit or hit after that? >> well, you know, some of the sales are coming on thanksgiving. some of the retailers are opening early on thanksgiving and giving some really good sales then and then cyber monday. there's stuff on the weekend, also. and even after this big black weekend or whatever you want to call these days, there will be sales getting close to christmas, as well. >> when are the best sales? >> she wants the know when to go shopping. >> there's some we believe sites like, et cetera, tracking the very best deals and not necessarily on black friday, for sure. they're on different days. there's some websites that say the best days to buy consumer
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electronics, best days for apparel, some occur on black friday and not always and i don't know if the deals are only reason people go shopping on black friday. the kids are home from school. most people have off from work. a wonderful time to go shopping so there's other reasons that people may go to the stores besides just the deepest discounts. >> joe, are we -- aren't we having this conversation about the validity of black friday as a bargain day simply because technology has stolen some of the cache of the retailers? there was a time that was the day to go and have the doorbusters and now they're online whenever you want them, right? >> that's right. all day on thursday. online tomorrow, today. and i think that there's still an event to be had around the black friday weekend an cyber monday. it is a fun thing, event to participate in. i think it is a family type of
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event. go to the mall, the restaurants on that day. but absolutely. i mean, i have seen days where the wednesday before black friday to get the very good deals. arguably the best deals. then again, i tracked a tv or two last holiday season and the best deal was on black friday so there's always different events to find and different doorbuster things they're doing and promotions to drive sales. >> yeah. we have to go, barbara. >> trying to get people to shop not by deep discounts but offering discounts to their favorite charity and other ways to be promotional on this weekend beside the deep discounts. >> i was going to say, reaction of people working on thursday. >> and then we applaud them. the viewers, not lost on them, either. paying attention. 55% of our voters chose to vote in the poll feel the best deals are not on black friday. so there you are.
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>> most return. >> they'll shop some other day. barbara, joe, thank you. happy thanksgiving. >> thank you. >> happy thanksgiving to you. >> excited about that tv. it's going to be a good one for the family. >> i thought you were looking for a blender. >> kitchenaid. exactly. watch our special black friday edition of "closing bell" to you live from the stamford town center mall in connecticut. >> really? >> speaking with shoppers, top execs at mastercad, fed-ex and tanger outlets. maybe some family members. >> last year we sold a tesla at the mall we were at last year. what do we sell this year? we seal' what you come out and buy on friday. by the way, this year realtime ground level check-in on the season, "closing bell" on earlier on friday. it's a half day trading day so we'll be on from noon until 2:00 p.m. eastern time. so come out if you're in that area. see us. love to see you and shop.
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it's a social event really. >> it is. >> not so much about the bargains anymore. >> the funny thing is the change of mentality of how and when to shop is more of a social event. because now as long as they can, people want to get out of the house a little bit. >> right. buy a tesla or something. >> i don't think you can do it there. look at the mobile device. never mind. the dow down 16 points now. the s&p's still up by about 3 and hanging on here as we see more selling pressure into the close. the nasdaq up 33 points. and chuck hagel reportedly forced out as u.s. defense secretary. a special report from washington. plus, the outspoken dr. ben carson, a possible gop presidential kand date for 2016. will be here to weigh in. also there is an abrupt exit in corporate america to tell you about. dow component united technologies ceo unexpectedly retiring effective immediately. reaction from people who follow that company, trying to figure
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a month at your local mercedes-benz dealer. welcome back. let's welcome back dominic chu. aren't you glad you're back just in time for snow? >> i am. i also know why one of you at least is loving this assignment on black friday at the sanford town center mall. >> you better be there, dom.
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>> i will be in englewood cliffs just so you know an i'll be doing it remotely with you guys. it's a great mall. let's talk about movers here with outerwall. news that the redbox service is raising prices by 25% and the stock up by 13% near session highs. verizon is moving lower after its citi cut the rating to a neutral from buy rating. verizon you can see there down by 1.5%. kate spade is rising after an upgrade from a neutral saying that the handbag maker and accessories maker poised for fewer markdowns and up by about 4.5%. visteon gaining ground on korean media reports that it signed a preliminary deal to sell the controlling stake in the south korean stake to a local firm for $3.6 billion. shares up by 2.5% and a big
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story. united technologies, lower on the surprise resignation of the ceo and replaced by the cfo hayes. utx shares down by 1.5% on the day's trade. back over to you. >> all right. thank you for now. should investors worry about why the utx ceo is suddenly out in? >> joining us is brian langenberg and mart newton. good to see you both. brian, what do you think? i mean, you know, usually when a ceo leaves effective immediately it can't be good. you hope he's not, you know, sick or something. and you hope there's nothing shady going on financially. what do you think's going on? >> the first -- the short and sweet of it is i have no clue. >> right. >> all right? and that's important. rumors are starting to fly. in terms of the -- anything shady, in terms of anything about company performance, i dismiss those.
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i have heard a couple of rumors this morning. but when you boil it down, i haven't spoken to anybody when's spoken to anybody who knows anything so let's eliminate some of those things. >> they didn't do themselves favors doing it this way. if there's nothing going on, why go immediately? >> that's the question. you are right. it wasn't staged well. i mean, granted, it is a light week probably for news but there's nothing in the release about personal reasons or anything. and i was able to speak to one contact, you know, close to the company or actually in the company who said i found out at 7:00 this morning through the press release so that's where we are today. >> right. okay. >> well, so mark, we don't want anyone to speculate but from a point of view srks the stock here at an attractive investment as it's you should pressure on this ceo transition for investors? >> well, nobody's mentioning the
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financial performance but it's a consistent laggard in the sector really over a couple of years and not only versus s&p but this stock recently hit the lowest level versus the defense index since 2002. so down at least at 11 to 12 years going to the downside versus its sector so certainly not an outperformer like a general dynamics or textron or lockheed. i think it's premature to speculate why he might have stepped down. hayes appreciated and respected by the board. so, you know, my thinking is from a near term perspective, the stock is not down all that substantively. it's bullish and could make it up to 112, 120 potentially as a maximum but, you know, you have to worry about this ongoing underperformance and what they do differently in the months to
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come. >> we mentioned greg hayes, chief financial officer will become the chief executive officer in his place. again, another intriguing part of this, brian, the current and now outgoing ceo scheduled to give the outloom for the company in just a few weeks and timing just is not all that great about how this is handled. >> right. i want to address a couple things. the timing is poor. i do not have a good explanation now. i'm working my sources. and my process around this. with respect to the stock and the performance relative to the aero space sector, i would point out that about 60% of this company is tied to hvac nonresidential markets and one of the head winds that united technologies is swimming against for a few quarters is that china is undergoing -- undergoing a slowdown and has a certain exposure that aero space defense companies typically don't have.
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on the aero space side and they had been prior to the tenure for years a laggard of commercial aero space. their big launch company, there are delays somewhat relating to the engine. i don't think there's a reason to think it's tied to him leaving but they have had a couple things to deal with. >> do you disagree with mark of where the shares are headed? >> my target price is 125. he says 120 max. i'll stick with my 125. >> you're both so bullish on the prospects and now a ceo turnover and the slowing macro environment. >> well, i personally -- we have a lot of things going well. you have a could of challenges. you don't control china demand in the near term. >> right. >> you just don't. on the other hand, the broader ccs portfolio is doing very well. they're getting better and better margins. appear to execute well on the
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goodrich acquisition. i do not attribute his leaving to the performance. >> last word, mark? >> i think there are better companies to look at in the sector versus utx and especially the exposure to china. my sense is until we start to see signs of relative strength picking up in the stock versus the peers, i would avoid it. >> okay, guys. thank you both. brian, mark, good to see you both. >> pleasure. >> appreciate it. heading toward the close, about 30 minutes left in the trading session with the dow down two points. action elsewhere. the nasdaq up 37, almost 38 points right now. transports up 66. very strong, as well, in today's trade. >> and coming up, it feels about 70 degrees and sunny in manhattan today. but a winter storm watch is in effect for the northeast on wednesday and it's only one of the biggest travel days of the year. we will have a special report
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from our friends at the weather channel about what could turn out to be a pretty bad storm hitting at the worst possible time when we come right back. i'm angela, and i quit smoking with chantix. people who know me, they say 'i never thought you would quit.' but chantix helped me do it.
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welcome back. time now to revisit a hot topic this year for investors. high frequency trading. michael lewis stirring up a ton of buzz on wall street saying the practice made it a rigged game. one of the next guests penned a response and in the book claims lewis got it wrong and high frequency investors save money. >> let's talk with him and others. peter kovak and tom joyce and also with us is dr. jay from optionmonst we don't have time to go over the whole book but what's the highlight? where did michael lewis get it wrong?
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>> high frequency traders are front running the public markets. what he alleged is simply impossible. the markets don't work that way. in my book i go point for point for his allegations and reasons why what he alleges is simply impossible. >> there's no problem -- john, are you concerned about the individual investor ripped off by high frequency trading? is there ultimately a point to the argument or no? >> well, unfortunately, i think he wrapped it in an almost pr stunt, though, kelly, as far as to grab headlines and saying that the individual investor's being ripped off and the market is rigged. it is a bad message to send. >> having said that, though, you're no fan of high frequency trading, are you? >> not parts of it that i think are the bad parts, the parts where you get a faster data feed by virtue of paying up to get it from, like, edgar, for s.e.c. filings, bill. the folks to disclose that they
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have a 13d or whatever it might be, that should be available at the same time to everybody. now, if you have a faster connection, so be it. so i'm not demonizing folks because they trade fast. people with liquidity, i'm all for it but gaming the system that i would be against. >> tom, i was in a ffsment conference a couple of weeks ago and a lot of questions from the floor had to do with high frequency trading. they had all obviously read michael lewis' book and ror weed about the effect it had on their individual portfolios. should they? >> no. that is a completecannard, frankly. there's a trading style that the execution destinations like night capital did, we will. it's called internalization. retail orders are held. they're sent off board usually and executed immediately. the high frequency trading community never even sees a
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retail order. they can't interfere if they don't see it. >> separate track. >> we did reach out to michael lewis and they weren't available today but, peter, there are moves in the market responding already to some of these issues. notably, rbc and others trying to do away with the maker taker premise here. do you think that's where this is going? in other words, are we making needed reforms to the equity market structure or no? is there no problem at all to reform? >> absolutely. we have been making many reforms and that's proceeding but interesting to mention iex, flash boys are backing away from the boy and main characters of the book and called it sensationalized and salacious and the flash boys is. it's dead wrong and detracted from the real policy debate we should be having. >> have you seen a change in the tone of the market as a result of michael lewis? >> we have seen, bill, and it
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wasn't just from michael lewis' book, of course, because we have seen prosecution of firms, athena trading and a bunch of others doing spoofing and loading the market with bad quotes. >> pulling them at the last second. >> yep. any ways to be out there to manipulate the market. these were things done way before the flash boys book came out. the fact to shine a light on it, great. make those bad players pay for their crimes. but if it's just providing liquidity at high speed, i don't have a problem with that. i think where people need to draw the line is if somebody is jumping ahead of somebody, because they have some ability to do that, then that's bad. those people should be taken away in cuffs. >> peter, last word. >> absolutely. doing something wrong, think need to be prosecuted. end of story. but high frequency traders on balance are saving investors money. the markets are faster, cheaper and safer than ever before. >> i got to say. i mean, i'm thinking of the
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people concerned about this because investor conference and talking to tom joyce, an insider on all of this. of course he will defend, you know, the way that high frequency trading is handled, right? >> i was going -- doing 4 million trades a day. high frequency trading never came into it. we didn't co-locate or intersect. internalization is the last great anecdote in the marketplace. >> worry more about the fed than high frequency trades? >> absolutely. >> i don't know. we'll revisit the issue. peter's rebuttal to michael lewis' book is "flash boys, not so fast." thank you, guys, for being here. >> thank you. we have a news alert on hedge fund manager david tepper. >> the hedge fund manager famous for the bernanke put or guessing that stock markets move higher in the wake of quantitative easing giving back to investors. planning to return 10% to 20% of
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that i'm told from now to the end of the year and could be $2 million to $4 million. this is a time when his palomino fund having a tough time down through the end of october but not clear how he's doing for november and may have turned it around a bit. if he does end up returning money to investors as we understand he will be and first reported by institutional investor this afternoon, perhaps some top holdings will be affected like general motors, citigroup, priceline and whirlpool and something to watch for at the end of the year. >> all right. very good. thank you very much. about 18 minutes left in the trading session. the dow virtually unchanged. nasdaq up 38 and the transports are booming again today in record territory. look, now the industrials
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turning positive. up next, this this could make for an unhappy thanksgiving. brace yourselves for what could be a pretty snowy travel day on wednesday. we will have the latest forecast from the weather channel. plus a possible grand jury decision to indict the white police officer who fatally shot that unarmed teenager in ferguson, missouri, in august. all of that is still to come here. ♪ oh what fun it is to ride. get the mercedes-benz on your wish list at the winter event going on now - but hurry, the offer ends soon. [ho, ho, ho!] lease the 2015 c300 4matic for $419 a month at your local mercedes-benz dealer.
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boy, what a time they have had in buffalo, new york, from massive snowstorms to epic floods that hilt last wet last dealing with the warmer weathers and heavy flooding it's brought. >> could be huge trouble for some of the roofs that haven't already collapsed from the weight of the snow. nbc news reporter sarah daloff is now at a buffalo suburb. are they having luck digging out? >> reporter: they are having some luck and the weather is changing it feels like every ten minutes. we were standing here in a bit of a downpour here for the rain with the winds kicking up and the temperature dropping and now the sun. this just goes to show how ever changing and how quickly moving the weather conditions are here.
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this is why officials are warning residents to be ready for anything. new york's governor even telling them a bag packed in case they need to evacuate so quickly. they have got volunteers, eagle-eyed volunteers alongside creeks including this one for the levels and keep an eye out for possible ice jams. you can see here, everything is flowing smoothly right now but earler yes had an ice jam break and swelled quickly and we managed to get the gear out of the way and receded. we heard an apartment complex earlier today where the floodwaters were coming up through the drains and the sewer backing up and people are scrambling to try to get the blangings off the ground and the bottom line is that these folks can't gate break coming to this brutal winter weather. back to you. >> all right. sarah, thank you very much. wednesday marks one of the busiest travel days of the year.
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aaa estimates 46 million americans heading out of town by road or air for the thanksgiving holiday. >> and already winter storm watch is in effect in the northeast for wednesday. weather channel greg pos tell joins you nous. how much of a problem will it be? >> a big problem. we will have winter weather really all the way from the mid-atlantic through the northeast beginning really in earnest early on wednesday and through thursday morning. look at the winter storm watches from northern virginia through maine and telling you what, if there's a risk to this folk, they change, that it is more likely to be a snow event even for the toastal sections like for example in new york city and i-95 philly, new york into boston. these are the know fall amounts we expect and i would not be surprised to see more snow than what we are showing here for the coast. let's start it out now on
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wednesday. the snow in the interior sections, rain mixed with snow. temperatures borderline like middle 30s and start off with a wet snow on wednesday awe then wednesday night i think that rain/snow line gets close to the coast. maybe only coastal jersey, far eastern long island and cape cod escape with rain and everybody else more winter than wet. likewise on thanksgiving day, as well. guys, so this is a significant event that is going to be with us through thursday morning and by then it's moving away and travel conditions i think should improve by then. back to you. >> greg, quickly if we could, we want to follow up on one situation of buffalo, new york. the governor deflecting blame saying it's the fault of weather forecasts and you blew it. >> no. that's not correct and factually inaccurate. the forecasts were there. we knew it was coming days in advance. feet of know and the
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accumulation rates and one of his con tense points. we had rates of 3 to 5 inches per hour long before the event started. c youomo is not quite right on that. >> not the first official to blame the messenger on something like that. thank you, greg. ten minutes to go here. these storms, bill, i mean, think about superstorm sandy, around this time a couple of years and that was a warm weather system. this is a cold weather system. we have ten minutes to go. the dow trying to stay positive. nasdaq up almost 40 points. national association of realtors said the commercial market is bright next year. but one of our next guests warns it could all go wrong depending on what congress decides on a key issue under the radar until now. that issue you need to know about is coming up here on "closing bell." stay tuned.
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welcome back. the dow is not the story. up two points. less than a point right now. the nasdaq doing well up 40 points and highlighting the transportation averages, as well. lower oil prices again today.
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transports are up. we have quincy crosby and peter caster. what will you doing? i haven't been able to talk to you lately. are you in this market or not? >> as of today, i have all cash. >> all cash. >> i can buy anything. >> we're at all-time highs. you are in cash. >> i am out. i think any time that everything looks so good it's never that good. i think with markets -- >> what could go wrong? >> a lot of things. chinese, you know, the chinese could mess up. geopolitical problems. the u.s. economy is doing great. we're in great position. but i never feel comfortable when we're in a great position. >> never happy. >> you need to always be worried. no doubt about it. we are recommending large cap, good quality as opposed to high beta and that's a pretty conservative stance and sticking with that until we get a sense of the termination of qe. >> like a defensive play? >> yeah, actually, it is pretty
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defensive, yes, why. >> are you playing dividends? >> dividends players, good quality, high cash flow and companies very focused on the u.s. growth. as opposed to internationally. >> okay. we'll take a quick break and find out what you're waiting for and where you'd put some more money to work heading towards the thanksgiving holiday. after the bell, walter isaacson will join kelly for the entire 4:00 eastern time hour. so much to get into with him and awaiting the announcement of ferguson, missouri, about the michael brown grand jury. we will have that if it happens on our watch. you will hear about it here on cnbc. you're watching cnbc, first in business worldwide.
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call our specialists today to get up and running. it's time to get to work are finally over, fixing our long-term national debt to help build a stronger economy. with a solid fiscal foundation, we can create more jobs,
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invest more in innovation and infrastructure, and make america more competitive, giving our kids a better future. a bipartisan solution to our long-term debt means more growth today, more opportunity tomorrow. and the time to start is now. so we're inside two minutes. here's how we look at the close with the dow up 8 points. that's it. that's actuallily pretty good gain today. both of those could finish in record territory. any positive close will be nasdaq pretty strong day. technology doing well an i mentioned earlier the dow transports doing well because of lower oil prices, an opec meeting on thursday. what are you expecting to happen with energy? what are you doing with energy right now? >> well, you know, i think you will see more m&an activity in
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the oil sector and even if the saudis cut and announce there's a cut in production, you will see cheating by those countries that need to have cash coming in. >> what usually happens. >> and that means supply will go up and oil prices even a blip up probably come down a bit after that. and so, you're going to see activity as we saw last week and see more and more of it. >> isn't that good for stocks? >> it would be good for stocks and the energy sector's about the only sector i do like and i think it's more my perspective is very long term and the energy sector, they look five, ten years out. that's the way you approach it. i'm 57. ten years out, i'm ri tiring. that's a great investment. >> i asked before, what are you waiting for to get back in the market? >> just so you know, i had significant profits this year and taking the profits, waiting until the beginning of the new year. it doesn't bother me. i start looking and picking and
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choosing next year. >> that's why we have had a low-key volatile month in november because peter costa is not in the market. quincy, good to see you. we'll go out with the gains. good gains for the nasdaq, as well. very special edition of the second hour of "the closing bell" with kelly evans. see you tomorrow, kelly. welcome to "the closing bell." i'm kelly evans. we are starting the week at fresh record highs. the dow managed to turn positive and adding levels and the s&p 500 adding to 2069. that nasdaq outperformer of the session, up 41, 4754. apple with a strong day, as well. lots to discuss. no one better than my panel joining me, walter isaacson from
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the aspen institute and author of qult the innovators" and others and with us is kayla, steve and guy adami. welcome one and all. guy -- >> hi, kelly. >> can you believe it? >> records, every day a record. >> how -- >> market, especially this week, i mean, it is going to look past anything. typically a decent week. one thing that stuck out to me, kel, all about the trade, you know that on this show, the downgrade of chicago bridge and iron of goldman sachs to sell. domicile in chicago. >> chicago bridge and iron? >> chicago bridge and iron. cbi. >> okay, okay. >> it's a basically a play. they're saying that the energy market still has lower to go but if you believe the energy market is bottoming here, given where the stock is trading, valuation, gobble it up. >> nice pun there. that's what we want to talk about. the focus on the opec meeting on thursday. i mean, the head lines are right and left.
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u.s. oil imports from opec at a 30-year low. walter, how transformational of a time are we living through? >> totally. we were talking about "the prize" and now seeing that blown away and something not mentioned yet, extension of the iran nuclear deal and almost as if things are calming down there. it's in everybody's interest, you know, to keep things calm but it's also in the u.s. interest to keep the oil prices low. hurting russia, helping our sanctions there and put a squeeze on iran. >> and it's -- >> not helped our domestic production. i hope the keystone pipeline comes online and a long-term thing. >> i was going to say nice holiday gift here, as well. >> with gasoline prices this low, i mean, that's the best thing around. >> exactly. >> benefiting the u.s. consumer and same time hurting russia where we have sanctions in place, seems like a double-edged sword to work in the u.s.'s
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favor and i know opec is worrying traders. it did he understand to be binary event and people don't know what to expect and records today just minutes before the close, the dow, three decimal places to find a change to the up or downside and literally at the very flat line on the dow and it seems volume is down and everyone's pretty much waiting until the end of the week which is going to be extremely volatile given the shortened trading days, the meeting on thursday and pent-up demand for trading there. >> steve? >> we have record highs, all indices. holiday shopping starting. cheap oil, cheap gas. this market could run away. i'm excited to see the oil prices affecting the boom in shopping. >> don't you think the lower of gasoline prices to help holiday shopping? >> absolutely. >> consumer confidence is good for shopping. i think you are seeing record highs and it reflects something real. >> a big tax break for everybody.
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>> we talk about how it will help the consumer driving to the retail stores but we forget that december's the busiest month for car dealerships and gas prices that the consumer feels are going to stay low, you sell a lot of trucks and jeeps and hummers as some of the dealerships already seeing even with a temporary move to the downside. >> guy, a great did you know? b barclays pointing out that despite global growth, the world demand has fallen in 2011 to probably under 30 million today to maybe as low as 28 million by the second quarter of next year. what kind of impact does that have on the energy trade and the broader market? >> that is a tee-up. you know what camp i'm in. i get the tax break for consumers. i understand. i drive it, as well. it doesn't speak to supply but demand. you talked about it. i think this move in energy is deflationary.
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jeff gunlock thinks yields are still going lower. there's some disconnect going on to manifest itself some point. we'll see what happens. i still think that the canary in the coal mine is the situation in japan and lost control an see how it plays out. >> it east interesting. the different cartels, right? if opec cut production, would the prices fall? i wanted to jump off something that guy said and talk about the 10-year spanish bond yield below 2% today. your point of view? how much, talking with rick santelli last hour. is all of this a very good, normal, healthy thing? something to be worried and concerned about? >> if i knew i would be a billionaire. this is an easiest thing and the markets correct and jump on it. this is a total coin toss and no one knows. if they do know, they're lying to you. >> do you have any theories,
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guy? >> the people to know are the people with the biggest position in the history of mankind on. i mean, you know, all the fed -- the central bankers and janet yellen and company and i was in the example and i know you think i'm nuts already. you think i'm more nuts. >> hardly, hardly. >> bernanke, they should have made him stay to the end. you can't put on a position in one of the firms and skate in the middle and say see you later, folks. they should have made that cat hang out until the bitter end and not playing out as rosy as everyone thinks. >> walter, do you have a lens on this, a read on monetary policy or getting too much into the territory of the, you know, economist and academics? >> no. i think that monetary policy helped keep us afloat for a while. there's controversy on it but a lot of pessimism. everybody thinks the economy is doing bad and the country and the election is sour. actually things are pretty good and i think that that underlying
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fact of the optimism, the growth in the gdp, the growth in profits, the fact that people are shopping, consumers spending, so much more important than the monetary policy right now. >> there's an interesting diver intelligence talking to people and consumer confidence numbers are better but asking people about the economy in the exit polls broadly they're dissatisfied. is this just an obama phenomenon? >> it's politics, it's polling. but the real thing is how do people really vote? with their dollars and wall mets. consumer confidence is going up. if you see consumer spending, people are confidence. i suspect that's what you will see. >> there's a turnover from the midterm elections and just in the transition period now and going to find out when the new congress comes in and the priorities it has with one of the biggest majorities that the gop has had or any party has had in some time. >> there's a few things they can do. there's common ground to find on everything from free trade to
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quite a few of our problems. what we have in washington is a dysfunctional system not good at finding common ground. i have made myself into the optimist on this show and even with this election, it gives speaker boehner and, you know, leader mcconnell, more wriggle room to say we can make a deal and with mcconnell. he knows how to make deals. you think we could get something out of this in terms of what? corporal tax overhaul. >> the deaf zits and causing everybody agitation on the show two years ago are much lower percentage of gdp. we need corporate tax overhaul and i think that's something to see. >> guys? >> yeah. coming back to me? sorry about this. >> i was just -- >> i missed the guy part. consumer confidence is a fascinating thing. tell me the dow a month ago and today and tell you exactly to the point where consumer confidence is going to be. not to make it that simple but
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it's as easy as that. market goes up, consumer confidence goes up. people spend money they don't have today just like in 2008. nothing has changed. >> would you, guy, we have to run but would you say the same thing about europe right now? the survey in germany is strong. accused of following the market. do you think there's perhaps better economic situation under way there or still have to rely on -- >> some of the markets feels like they might have for the short term at least turned a little bit. i think the things -- you make a great point. look at the european markets and to me the russell. the iwm and can't get above the 121 level. i think it's imperative for the market to continue higher and the russell and the iwm gets holes and closes above 121. >> yeah. i like the brian reynolds point on the show friday about how the russell dragged higher. i'll leave it as a little tease. thank you for now. >> later!
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>> stick around for guy adami at 5:00 and talking to the ceo of inovio pharma. coming up here, the commercial real estate market is red hot around much of the country and the next guest said it could be heading for a crash and burn. she's going to lay out the case right after this. and then later, outspoken obama kritish dr. ben carson here to weigh in on the president's latest moves with the immigration executive order, as well as the pending developments in ferguson, missouri. you are looking right now the live shot of ferguson where that town and the nation await an announcement in the fatal police shooting investigation. it's expected around 5:00 p.m. eastern time. we're back in two. stay tuned.
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welcome back. we begin with dominic chu. >> kelly, nuance communications, stock moving higher by about 2.5% here. 147,000 shares traded. the company posted better than expected fourth quarter results. the stock up by 2.5%. different story here for work day posting a narrower than
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expected third quarter loss on better than expected sales. fourth quarter guidance basically in line and the stock falling and we'll say to the tune of 4.75%. back over to you. >> all right. thank you for now, dom. commercial real estate red hot in new york. when's the outlook for the rest of the country? diana olick has the important details. >> you're right. realtors out with the quarterly commercial forecast and the headline is that q2 not an anomaly. the improvement in commercial real estate continued in q-3 and expected to increase in f-4 and point to improved business spending and improving labor markets but all commercial estate is not the same so let's break down the sectors. start with the sex jest, my favorite, industrial. vacancy rates are expected to
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rise. orange county, california, strongest market for industrial after that l.a. seattle and miami. as for retail, they van sys should fall with rents up 2% and a big jump in absorption of space. office is till the weakest with vacancies of 15% and expect a slight decline amid higher rents. finally, multi-family, this has been the hottest sector with vacancies at a record low 4% and only sector where realtors expect to see vacancies rise a little bit? due to more product coming online. right here, 250 units going in and much more across the nation. kelly? >> yeah. there's a lot more cranes than you'd realize. diana, thank you. national association of realtors said real estate is solid next year and according to many next guest, there's danger on the horizon. with me now for more is sherry olefson. sherry, great to have you.
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>> thanks, kelly. >> everybody's saying full steam ahead. you're saying the problem is what, though? >> slow but study and an encouraging report. pretty much what we expected and expect moving forward is comparable and the thing is at the end of the month the terrorism risk insurance act expires. that's the act that was started after september 11th when no one insurance company wanted to assume that risk and we lost 300,000 zwrobs, over $15 billion in transactions and already in my own transactions as a lawyer i'm seeing insurance companies with the exclusionary clausing saying if the act is not renewed, there's no terrorism ri risk. >> wasn't the impact of 2001 and 2002 magnified by the events of 2001 and will it have as much of an impact ten-plus years later? >> we have built this into the
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system now, kelly. it is in all of the loan documents and a lot of major commercial leases that i negotiate for large tenants and shopping centers, for example. they want to make sure that the landlords have the insurance in place so if there's a disaster like that, they have an emergency recovery strategy and they won't be out of business for too long so i tend to disagree. i think it's indoctrinated of commercial real estate procedures. >> walter? >> hearing in washington is that chuck schumer wants a deal on this. congressman hensarling is trying to move closer to him. a surprise. very conservative. somewhat of a tea party darling. do you think that there will be a republican making a deal with the democrat like schumer and get this through? >> wouldn't that be awesome? the senate passed their version in july and there's no reason really. from a practical standpoint, they're splitting hairs over trigger points, over trying to
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bifurcate terrorism rates and we never had to call on the act since 9/11. the risk didn't disappear but never had to use it and the act weren't renewed taxpayers would be at a much higher risk with no plan and we all know that government is the defacto backstop anyway. >> right. steve? >> if this is not approved again, what happens the next day? like day one of no terrorism act, what are we seeing with rents and business? what happens? >> sherry? >> potentially over time if the insurers are required to absorb this, we'll see insurance rates go up and going to see a brakes slam on commercial real estate transactions. we are missing about $100 billion of those transactions of where they were and see the brakes on commercial lending and saying that lending is prudent right now except for in multi-family and just like a frat party but for the most part it's prudent. the brakes will be slammed on if
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this act isn't extended. >> sherry, we have seen commercial loan growth it's just been accelerating throughout the year. $1.7 trillion in outstanding loans as of october and you're saying that growth would stop with the rolloff of this insurance? or you think the economy gets so much better that the companies absorb it? >> that would be great, right? we are not seeing the increase in real estate secured lending. the market is less than half of what it once was and the lending was out of control and most part seeing prudent lending. bifurcated again. depending on location and size and type and in fact the report that came out this morning tends to be smaller transactions under $5 million but there's no question that not renewing the act is a tremendous impact on lending. >> i'm glad you drew our attention to it and congress can do something about this and the
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frat party in multi-party doesn't cause too much of a hangover. thank you for being here, director of the car carnegie group. restrictions could end the delivery dreams of amazon, domi domino's and others r. the new rules too tough, just right or not nearly enough? you can weigh in at right now and let us know what you think. also, jetblue latest airline to charge passengers for checking luggage. a new service is coming to take it out of the hands of the airlines altogether. we'll tell you about it coming up. stay tuned. a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions, your business is more reliable - secure - agile. and with responsive, dedicated support,
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this is the microsoft cloud. welcome back. commercial drone delivery facing may your turbulence of regulators. jon fortt with that story. as we talk about it, we want to know whether you think the new rules are too tough, just right or not enough. to weigh in. jon fortt? >> goldilocks i suppose and pick which drone porridge bowl you want to hear. these are proposed rules, not necessarily set in stone. still a while before it gets figured out but, look, you need a pilot's license to be able to fly a drone commercially. that's hours and hours of manned flight experience required. flights under 400 feet. daytime flights only. and this would apply to all
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drones under 55 pounds. so the hobbyist drones of less than 3 pounds regulated the same we as the large ones. when's at stake? largely, the market in agriculture and drone lobbying group says within the first declad they expect $82 billion market for drones and more than 90% 0 of that from agriculture. you can fly it over and see what the crops look like, where there's bright, that sort of thing and real estate photography and other areas to be helpful and if the regulations are stringent and not only limits what to do with them but who has enough skill to be able to operate them. >> which is an interesting component. your thoughts on the new regulation? >> i worry about so much regulation because we have had such an innovative economy with the digital economy because that's something you can do in your garage or backyard or whatever but whether it's elon musk with physical projects of
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cars and batteries or the drones, we get into the heavy regulation an really does cut back on the innovation. especially as jon said, 55-pound drones, that's a big thing to do damage and the phantom drones just little ones with cameras, that shouldn't be swept up in my mind in the same series of regulations. >> you guys agree? >> go ahead. the advantage of drones right now, smaller ones, cheap and easy to use. if you make someone put in the hundreds of hours and money to get a pilot's license, no one will use them. a photographer won't spend all that time for a quick shot. it's going to slow down innovation and same time as you said we can't have the giant things flying around. the size restriction is important. >> it might be an industry of expertise and a pilot's license and some of the companies could hire the people as contractors to come on board and serve a specific function for a drone. i think where it hurts is delivery drones. for instance, domino's, how many
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people order a pizza during the day? >> i think they're a bit out there to begin with. can you imagine flying a box down the street and hitting your kid in the head? photography, where you have the potential to take pictures of a house or real estate listing or a kid's game, high school football. >> concerts, been to one lately and local with a drone flighting around to capture what's going on. >> absolutely, absolutely. if you have hire $100,000 pilot who also has to be looking at the drone the whole time, they're about digital mapping also. not having to see it the whole time. >> you gave me data point of mainly being for agriculture at first, i mean, that's where you don't want to sap innovation and it is pretty tough to put all of these things on it and then say, okay, revolutionize agriculture. >> what if you license it and had to be a database and people aware you had a drone and
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operating it? would that achieve anything? >> you still with the heavier drones you have to make sure that they're safe. and even with the lighter ones but seem to me deserve a different level of regulation, especially when they're doing crop surveillance. >> it's interesting to watch sentiment. went from everybody thinking the regulations too tough and now 60% of people thinking perhaps it's not enough. >> i think there are regulations needed. we have to have licenses for cars and probably need for them drones in the air around people's heads and know where they are and who they belong to and the skills to operate them but at the same time you don't want so much regulation on things that it absolutely chokes off commerce. hopefully they find a middle ground. >> one thing to remember is that it's a systemic problem and always afraid of risk as a regulator and any little thing that goes wrong you're in trouble but not if you prevent an industry from flourishing.
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>> now again, closing the vote and about 60% of the people think the proposed drone regulations are not enough. little surprising i've got to admit. thank you. thank you, jon. ferguson, missouri, the country on tinderhooks and announcement of the grand jury on the controversial shooting of a black teen by a white police officer could come down any minute. we'll talk to potential gop presidential hopeful dr. ben carson and get his thoughts on the situation. who do you trust? whose analysis is accurate? how do you make sense of it all? a simple, unbiased stock score consolidated from the opinions of independent analysts... is that too much to ask? nope. equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. and it's only on open an account and find more of the expertise you need to be a better investor.
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welcome back. let's send it back to dominic chu for another earnings alert. >> kelly, we have palo alto networks and software maker posting better than expected first quarter results on a 50% rise in sales as more companies look to guard their data and their networks from hackers but investors maybe not so impressed right now. after hours, down by about 2.5%. about 234,000 shares traded an outlook is increased above some estimates and may be down by 2.5% on other forecast issues, as well. >> true. thank you. if payday lenders are booming, when's it say about our
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economy? for now and more, let's switch over to allen. good morning. good afternoon, i should say. >> jeff cox wrote a neat little feature for us on payday lebding. here's the foktoid getting attention. there's 20,000 payday lenders. a little over 14,000 mcdonald's. >> wow. >> and the average apr effective of these people using payday lenders, it approaches 300% and becoming a big problem. jeff broke down how they're looking at it and whether or not they might regulate it. keep in mind regulation's a double-edge sword. they rely on the advances just to keep going and i could have the reverse effect. kelly howell looked at the state of college demographics right now and here's the interesting factoid. there over half are part time and using transfers and juggling jobs to keep going but taking
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them longer and longer. their graduation rate for part timers about 43% versus kids going full-time the graduation rate is 77%. once again, a little gappage going on. and then we wrote up an interview from power lunch. everybody's focused on opec this week. i put the letters opec in a headline. automatly getting clicks. we had a guest of brg brokerage saying if you're counting on $60 oil, forget it. >> huh? >> he thinks that they're going to make ajunction on production and a bottom there around 72 bucks. we'll see. that's heating it up right now. >> thank you. good to see you this afternoon. a decision of the ferguson grand jury is imminent and we'll have a live report and reaction of dr. ben carson joining us next. people with type 2 diabetes
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while you urinate. farxiga can cause serious side effects, including dehydration, genital yeast infections in women and men, low blood sugar,kidney problems, and increased bad cholesterol. common side effects include urinary tract infections, changes in urination, and runny nose. ♪do the walk of life ♪yeah, you do the walk of life need to lower your blood sugar? ask your doctor about farxiga and visit our website to learn how you may be able to get every month free. welcome back. grand jury made a decision in the case of ferguson police officer darren wilson and we can get an announcement any moment now. scott cohen joins us from missouri with the latest. hi, scott. >> reporter: hi, kelly. the timing of that decision is not at all clear, and also not clear is what will happen after the decision is announced. we'll get that soon but in the
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meantime the preparations that have been going on for sometime for this day when the grand jury makes its decision in its investigation are becoming clear. take a look up the street here in ferguson. this is the epicenter of the protests that sometimes turned violent back in august. right now, fairly calm but traffic is picking up and then let's go about 12 miles away from clear in clayton, missouri, where the grand jury met this timing for the last time and where we presume the decision will be announced. the timing not exactly clear. let's give you the latest where we stand. again, a decision reached in the investigation of officer darren wilson in the death of michael brown. the governor has flown to st. louis from jefferson city. he is expected the meet with local clergy a short time from now and then expect this afternoon to see him appearing with local public safety officials to talk about some of the preparation. we know that police preparing to
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run 24-hour shifts. they have asked the public for help in giving them some provisions and a lot of local school districts around here now canceled after school activities in anticipation of this decision. the superintendents asked local officials to delay the announcement until after school hours an appear that is's what's happening. back the you. >> all right. scott, thank you very much. we want to get into the topic and much more with our next guest. joining me first on cnbc, dr. ben carson. it's great to have you here, dr. carson. there's so much to get into right now, but can we begin with ferguson, missouri, and how it's been handled and what's likely to happen in the next couple of days? >> i'm grateful that michael brown's father called for calm. it locked like a sincere appeal and other responsible individuals, as well. i believe that there are a number of outside agitators who
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are coming in and i believe, however, that most of the people are going to be smart enough to understand that they should not respond with violence which will simply induce violence on behalf of the police. this is a kind of thing that is causing militarization of police forces, not only in ferguson, but throughout the nation. what happens when that happens? these clashes become violent, frequently deaths occur. and most often those deaths are -- the deaths of the people are those protesting and they need to stop and think it through. will you let outside agitators manipulate you for more people to be injured and killed or think it through logically? see what the evidence was that was presented before the grand jury, see if there's any taint of bias or unfairness and then take care of it through mechanisms that are much more reasonable. >> what would those mechanisms
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be? for those that follow your advice at the local level and bring some compassion, some understanding to that particular situation, what about people who feel has know though there's a broader issue here the stand up for and confront? >> there's no question that there are broad issues of violence but what we should be asking is, what about the dozens of young people that look like michael brown that were killed today? in america. and that were killed yesterday. and the day before that and will be killed tomorrow. should we be looking at what is causing that carnage? these are precious lives. we can't afford to be throwing the people away and simply ignoring it. >> no, that's exactly it. >> concentrate the effort. >> that's what the people who involved to some extent to michael brown's case say they're making a stand for those individuals every day who you mentioned who even go nameless
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and faceless. >> you have to ask those individuals that do go nameless and faceless, where are they finding death? who is killing them? what is going on? what is causing the problem? that's where we need focus attention. i don't see that being done, quite frankly. i would hope that -- >> is there a problem here that you would diagnose or, again, it sounds like you're saying that we're conflating too many issues into this situation in ferguson. >> right. we're taking the whole thing an putting it under one embrel la when, in fact, the issues that produce this are complex. a lot of young men growing up in the inner city with no father figure, with no one to teach them how to relate to authority and then what happens as they get older? they run into authority. not a good situation or they run into somebody else in their neighborhood who's badder than
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they are who kills them. which is even a more likely scenario. how do we address those kinds of situations? because it's just continual carnage and going on and being ignored. >> it is. thank you for addressing that and glad to have you on the program again because your name mentioned by folks we speak with about vice presidential ticket in 2016. maybe the presidential ticket. do you have any plans at this point you can tell us? >> well, i can simply tell you that this is not something that i particularly had on my bucket list of things to do when i retired, and but because so many people have been pushing for it, i've had to consider it, obviously. but, you know, i would see any position that i took as a position of service. i hope that more of the people in washington, d.c. will begin to understand that in our republic type of democracy we
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are sent as representatives of the people and the government is supposed to conform to the will of the people, not vice versa. and we are supposed to serve them, not rule them. if people can get that through their skulls, i think we have a chance of moving in the right direction once again. >> was that a jab at president obama's executive order on immigration last week? >> well, i don't particularly appreciate the way that that was done and i think it sets dangerous precedent because what if the next president coming along and says, well, i am not happy with congress, i don't like what they have done with these regulations for the environment? i don't think we'll enforce those things or any other host of things. you know, we have an excellent system of government that was set up with separation of powers. and, you know, the constitution sets out very specifically what each branch is supposed to do. and if we work within that framework, i think we'll do very
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well. we have to understand what leadership really is. leadership is not saying, i'm doing it my way. leadership is bringing people to the table. people from different points of view. using that wisdom that you can gather from them and formulating something that works in a representative type of government. not a me first type of government. >> understood. i certainly take to heart the warning in that message. i also just wanted to ask, on a week where we're dealing with trying to resolve the situation in iran, again with various people concerned about even the prospect of israel getting involved if there's no resolution on these talk that is are happening in vienna right now, would you agree with paul ryan saying that it's time for us to declare war on the islamic state? >> well, islamic state has certainly declared war on us. their goal is to destroy us and our way of life as well as israel and for us to sit back
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and simply react to them i believe is big mistake. yes, i believe we should use every source we have known and secret to get rid of the threat to us and israel and our way of life. >> i want thoughts from the panel, doctor, before you go but on the obvious issue given the profession of obamacare and whether given court orders or just as an issue to violate the constitution as you mentioned earlier where you come down on it. >> well, i think we certainly as a responsible society should try to make good health care available to all of our citizens. i think there are much, much better ways to do it than the so-called affordable care act which is going do get less affordable when the employer mandate kicks in. tens of millions more people will be affected. i believe this time around we should sit down and talk with all of the parties involved. not with just one side forcing
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their way on everybody else because this is something that affects all of us. we have to get away from this my way or the highway stuff an think about things that actually make sense. the's so many wonderful proposals that i personally have heard and we could do this for much less money and give people much better care. >> walter, what do you think? romney-carson ticket 2016? >> let's ask the question because we were talking about it earlier today. the terrorism risk insurance program, should that be renewed? >> well, can modifications be done to it? i think there's some modi modification because i think there are a lot of things that people are concerned about. and maybe some abuses that have taken place. and i don't think we should necessarily throw out the baby with the bath water. but we need to maybe look at some of the things that we have learned over the years. >> steve? >> what kind of abuses?
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in that terror bill? i mean, it's luckily thank god never used since 9/11 and there's a lot of things built in that private money's used way before any public money and public money reimbursed if we had to use it. what kind of abuses are you seeing? >> well, the potential for surveillance abuses. of normal law abiding citizens. >> talking about the terrorism risk insurance act. >> well, explain to me what part you're concerned about. >> the question is basically should it be extended? supposed to sunset december 31st but this congress has a tough time extending anything with these dead loons and if not it could hurt the commercial real estate sector and comes down to who pays for ultimately lly ing the large buildings, those that build them or the taxpayers with no insurance rirnlts that exist
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and the same way this a homeowner might have to take out insurance. everybody probably trying to get along without it if they didn't have to pay for it but making them pay for it generally leads to a better outcome. would you support extending the act? >> i know there are people on both sides of the issue very strongly. i'm not sure whether i would support it or not at this stage of the game. that would be some -- you know, there are a lot of factors where i think it's very smart to sometimes wait until you you have more information. i remember when president obama was asked a lot of those kinds of questions and he answered them and then when he got in office, he did something completely different because then he was privy to a lot more information that he didn't have before. >> right. we appreciate the candor and for you being here. professor aher us the at johns hopkins and someone to keep an eye on for a couple of years. mch more coverage of the
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ferguson decision coming up on cnbc. you're driving along, having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time. they won't give you enough money to replace your brand new car. don't those people know you're already shaken up?
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imagine taking a business trip and having your bags waiting for you at your final
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destination for $99. it could happen due to a startup with success in europe so far. phil, has it come into the states? >> yes, the first day for send my they realized there were so many americans traveling internationally. look what happened domestically. it's ant international routes too. and this is from 500,000 in 2007 to 3.5 billion. that's the expectation this year. now you have send my, launching service, and essentially for people flying internationally and want to avoid being overcharged or paying too much because they have overweight bags. those bag fees can be hefty. $99 is what it starts at if you're shipping a bag to europe. $145 to australia. that's the starting price. and they believe this is just the beginning of what they
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believe will be a lucrative business for those flying internationally. >> it's a very real cost saving. and our prices are different than the luggage services of the past. we are seeing traction in europe. over 100,000 pieces of luggage sent in the last 18 months. we expect to send over 200,000 in the next 12 months. >> they are expecting big growth, kelly. and you can see why. because these international routes, sure, if you're flying american or united or delta, you know about the bag fees. flying a foreign carrier, they are surprised how much they are increasing. and a lot of people are saying ship my bags ahead of time. >> it's like uber for your bags. that sounds like -- they should get into this space, shouldn't they? >> it would be interesting if they did get into the space.
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when you think about how much luggage is going all over the place at all times, if they could be more efficient. that's the key. >> and knowing those distribution networks. phil, send my a lot of people ship skis around, by the way. and thought on what's ahead for the last week of november. the opec meeting on thursday. and close off the week and kick off the holidays, yes, special black friday coverage live from stanford, connecticut. we're back after this. ♪ ♪ and everyone telling you be of good cheer ♪
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welcome back. time now for final thoughts with the panel and watching this week. here's one to watch, apple's share price, as soon as it hits $119.36 that puts the market value over $700 billion. what would steve think? >> well, he'd be very proud. he left a very good company in place. when i asked him what's your favorite product, he said apple, the company. i hope it keeps growing. you can see this is part of something larger. uber or nuanced communications, stock going up, the great ceo, paul richie. created the voice recognition technology that underlines siri.
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whether it's send my or bags vip through united airlines or uber or apple or anything else, it's a new economy. be optimistic. >> your spirit is radiating. we're going to have you every day until christmas. what do you think about uber and the way they have led this company aggressively. some of the comments about journalists. that must have struck a cord. >> i have met him, he's aggressive. and it's a steve jobs-like thing. i think that people have read the biography of steve jobs one too many times. you have to be aggressive and have a moral sense. i think travis has that, but sometimes building hard to build it, and you get ahead. we know that uber is here to stay. 20 years from now, it transformed the economy.
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>> talking about uber, it's a great company. i like travis being superaggressive against the taxi cartels. starts attacking incident journalists and ruining their lives. they'll recover. >> we speak as part of the innocent journalist -- >> yes. >> what are striking the right tone of aggression. you have to have some to disrupt an industry. >> you have to be aggressive to disrupt an industry, especially with uber, in the taxi cabs in my hometown, new orleans, had to be disrupted. i'm looking for new companies. payday lenders, people to help the unbanked. the underbanked. instead of high-speed trading and how great it is, people to disrupt the financial services to help unbanked people get into the system. >> be the kind of company that walter will write about. the kind of person. that's a litmus test. thank you for being here. kayla, steve, my thanks,
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everybody. fast money is coming up in just a few moments, melissa lee. what's on tap? >> as you know, cancer immunotherapy treatment is the biggest thing, and we have the ceo in that area. he is an exclusive on the show. >> people say we're curing cancer and people aren't talking enough about it. over to you. >> fast money starts right now. live from nasdaq in new york city, i'm melissa lee. another record close for the dow and the s&p. but the top story, the new high hit. the srt hitting an all-time high as the holiday shopping season grinds into high gear. and talk about kate spade, catching an upgrade over bank of america, buy to neutral. and upping from $33 to 34 a share. this is quite a momentum stock. >> it is momentum stock. we have


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