Transcripts For CNBC Closing Bell 20240713

Component earnings joining us for the hour is stephanie link great to have you here i think thats exactly where we should start we had earnings from walmart and cisco. Cisco is the drag on the dow how would you characterize how it reflects back to the Broader Market last quarter the same thing happened where cisco disappointed and walmart posted a better than expected number. This is what this economy swhat this market is enterprise spend is weak on trade concerns and uncertainty and thats not Getting Better any time soon versus the consumer being very strong those numbers are very impressive 6. 6 stack comp for walmart. It actually kratd. Ecommerce sales 41 . Estimates are going up for walmart and going down for cisco and i dont think theres a lot of visibility at cisco even if you listen to that Conference Call they were disappointing across the board. You got to pick your spots of where you want to be well dive deeper into each of those Companies Reports ahead. Stephanie will be with us for the full hour. Le Steve Liesman is monitoring all our fed speakers frank is covering a headache for uber and phil lebeau has details on an Auto Reliability survey. Steve. Reporter two days of testimony from the fed chairman and Copious Amounts of fed speak the fed is on hold and fairly high bar for it to move either way. Jerome powell said he doesnt see recession on the horizon but that there are risks look at todays economy theres nothing thats really booming that would want to bust, in other words its a pretty sustainable picture. I pointed out the risks and those are in manufacturing manufacturing is declining but not sharply. Its more sensitive economically to cycles so it does decline new york fed president in his speech sounded a bit more concerned than the chairman about overseas developments. He said, quote its striking in almost every corner of the world geopolitical tensions are threatening to put the brakes on growth. Even republicans in congress do not embrace President Trumps strong criticism of the fed and has called for negative rates. Lawmakers seem comfortable with where Monetary Policy is right now. So do most members of the fed. Stephanie, do you agree what are the key things from chair powells testimony in the last two days. Anything that surprised you nothing surprised me. Slow growth. Look at the inflation numbers. They are nonexistent. Core pc e which is what they look at 1. 7 annualized. No threat to getting inflation on the upside. At the same time growth is moderate we have an accommodative policy. They will watch and see what they need the to do. A prelt high bar to see a move in either direction if the european data, though, continued to be less bad than had been feared as has been the case in the last week or two and if Christine Lagarde comes in and doesnt want to hold rates as long as mario draghi did, could we see inflation and allow a rate hike next year sooner than expected . Reporter i dont think the european policy rate will be determinative at all of u. S. Rates. Theres detail on the height of the bars i think the bar to hike is this high and the bar for the fed to cut is this high i think theres a much higher bar for a rate hike than there is for a rate hike right now i think if europe turns around, and if that then ricochets and we get this trade war behind us, we could be doing 2. 5 growth in this country instead of 2 i think some exalternatival factors are keeping get down to a quarter to as much a half a point. In that case the fed might go about reevaluating this idea of being on hold. Its on hold through the First Quarter of next year with the bar at heights that i think that they are steve, thank you. I know a thing or two about bars, morgan you know a thing or two about weather. And macro economics turning now to walmart, hitting an all time high now pulling back throughout the session. Someone who knows a lot about this is Courtney Regan reporter so walmart did beat on earnings upping its fur years guidance. It was a currency drag twice what the retailer had expected u. S. Comparable sales grew for the 21st straight quarter from in store and Digital Sales grocery again the main driver in the quarter. The category makes up more than half of total sales for walmart so its been key to sales for years. But new expanded grocery pickup and delivery options are really helping to drive that growth ubs says Online Grocery pickup is driving between a quarter to a third of walmarts eat growth in the u. S. Business thanks so much for that stephanie we mentioned why do you think intraday slippage . The stock is up 30 yeartodate the expect jags were very, very high this is a Consumer Stapleslike stock. Its just a modest pull back uber shares falling today as the company face as potential headache in new jersey frank collin has the story for us reporter new jersey hitting uber with 650 million tax bill for four years of back taxes because the state said the company misclassified its drivers as independent contractors instead of employees. Uber issuing this statement saying were challenging this preliminary but incorrect determination because drivers are independent contractors in new jersey and elsewhere uber and other gig employers are facing similar situations in other states in california, a law passed in september could force drivers to be classified as employees uber shares falling more than 2. 5 today back over to you just to be clear does new jersey have legislation like ab 5 already on the books reporter they dont have legislation like ab 5 but they have a way to determine whether youre a contractor or fulltime employee they say uber drivers pass that abc test and are employees if they lose their appeal how quickly do they have to cough up that cash. Reporter well first things first. Uber is contesting the amount. They say the amount is over inflated and the state is over estimating the amount of bookings they had in new jersey. When the payment would be due is not clear. I would guess it would be challenged in court very similar to ab 5. Thank you shares down just about 3 . Consumer report out with its latest reliability rating. Phil lebeau has a look reporter one of the big ones involves tesla last year it was removed from Consumer Reports recommended list because owners of the tesla were saying you know we dont see too many models with the model 3 or model s one year later things have changed. This is based on reports of people who own tesla the reliability of the model 3 is improving in fact they have now put the model 3 as well as the model s back on the recommended list the. Tesla shares have been ripping, essentially doubled and ranked as an auto brand number 23 out of 30 brands by Consumer Reports top three brands, lexus, mazda and toyota the bottom three, always interesting when you look at this list. Plummeting to dead latinos cadillac, alp alfa romeo and ac. Mazda is japanese. Three japanese firms at the top. Yes they tend to be near the top mazda has been improving not surprising to see lexus and toyota at the top. Toyota was number one last year. If they are not in one, two, or three in some kind of order, lexus and toyota are always near the top. Thanks so much. Lets bring in Vice President of Strategic Initiatives at mile one to discuss autos a little bit more before we get to this Consumer Reports and some of the takeaways from that how do the overall numbers of car sales going at the moment . Yeah. Thanks for having me first and foremost new vehicle sales continue to be choppy monoas an example, august was a record month for us. September was weaker october came back stronger really when you think about, you know, trying to diagnose where the consumer is right now in term of their spending on autos, tying that in with used vehicles is critical as well as parts and service. Used, parts and service are growing for us at high single digit rates. No red flags despite the choppiness as you have it in the new Vehicle Market what do you make of the fact that the tesla is back on the recommended list as the reliability improves for its cars in the Consumer Reports i think tesla makes great vehicles weve seen them over the last seven or eight years really drive a lot of consumers to electric cars broadly. Where tesla has a lot of challenges ahead is trying the to figure out its retail strategy and servicing strategy. Thats an area where were very much focused and really an omni channel fashion trying to blends the brickandmortar franchises he we own and operate with a budding and stronger digital presence over time certainly the vehicles have held their own relative to other electrified and nonelectrified vehicles us about it stands out as a key obstacle in years to come. As auto sales begin to soften and come off in this country and across the world, electrification, some new technologies coming in, selfdriving, ubers and lyft that are decreasing car ownership right now will we see more m and a and consolidation in the space i think for a lot of reasons, some of which you pointed out. Broadly the dealership base is ageing many lack succession planning. Many lack the appetite to make multimillion dollar investments in facilities and many lack the breadth in diversity in brand and geography that will help them weather the next recession whenever that may be those are some of the key drivers we certainly see helping to fill the m and a pipeline which, as far as i can tell is the most robust that ive seen in maybe the last seven or eight years. What could be more big deals like weve seen . Well when you say big deals are you referring to buffett sorry, in term of the oems yes i do think longer term, when you think sergio, the late great sergio mentioned this a few years ago, long term theres a lot less differentiation under the hood and a lot of costs that oems bear in terms of bringing out very similar power trains and suspension systems and chassis and so forth i think it makes a lot of sense for Companies Like fca and renault to merge over time when you see the retail strategies, fca has certainly struggled absent jeep and ram which have done very, very well. Other brands have had a tougher time trying to get a foot hold in the u. S. By example i do think over time and when you think about chinese competition potentially coming in, its going to help the bigger incumbent players to think more about consolidating or at least, you know, doing joint ventures around new projects like electrification. Meantime you got Companies Like daimler saying they are doing more layoffs anything in the auto sector you find attractive or youre an investor in . Not the oems but parts company. I own activ and they make stuff inside the cars, the electronics you were talking about which is a big secular theme within auto. I also own xpi sway semiconductor company, 60 of their revenues are autos im playing it differently jamie, thank you for joining us still ahead, leon cooperman fighting against a new ad by Elizabeth Warren blasting him and other billion injuries after the break, well dive into ciscos big break producinger price index climbing. 4 in october. Biggest gain in six months closing bell will be right back no not everything, i mean youre still blatantly sucking up to me gary. Brilliantly observed, sir. Always three steps ahead. Six steps ahead. Sixteen. So many steps. You done . A million steps ahead. Servicenow. Works for you. By the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. What do advisors look for dont just track an index, help me meet a clients need. Is the fund built to sell or built to last . Etfs are only part of a portfolio. So make it easy to explain. Give me a quality fund that helps me get clients closer to their goals. Flexshares etfs are designed and managed around investor objectives. So you can advise with confidence. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. Thats why Xfinity Mobile lets you design your own data. You can share 1, 3, or 10 gigs of data between lines. Mix in lines of unlimited, and switch it up at anytime. All with millions of secure wifi hotspots. And the best lte everywhere else. Its a different kind of Wireless Network designed to save you money. Switch and save up to four hundred dollars a year on your wireless bill. And save even more when you bring your own phone and upgraded your network. Thats simple, easy, awesome. Click, call or visit a store today. 43 minutes left to go. Cisco trading at lows not seen since january. Company beat on the top and bottom line but falling on weaker than expected guidance and slow down in Global Technology spending. Heres what ciscos ceo told cnbc business confidence, ceo confidence has been waning and its been waning because of all the uncertainty, whether its the u. S. China trade situation, the hong kong situation, brexit, whats going on in washington. I mean theres a lot of uncertain the at the so all were seeing is that we are models no change in the momentum, but certainly if we get a resolution in u. S. China, even an interim deal that could potentially help that stock is among tworts performers on the dow. Currently trading down 7. 5 and putting some pressure on the dow which is down 23 points. The we got 41 minutes left of the trading session. Lets get over to mike for todays market dashboard ill hit a couple more dow stocks hitting some extremes over the course of the dashboard. First paying for the wall, thats walmart take a look at all the swircht constituencies happy days are they here again s p levitation and apple in every bowl. Another dow stock that reached something of an extreme here as people pile in then fight for the little guy. Is it finally time for small caps to perform. First of all take a year and a half chart of walmart shares very impressive run. Up 43 at a time when the s p 500 over this span is up 13 or 14 . Tremendous multiple expansion, tremendous interest in the strategic story of walmart what i like to look at is all the Different Exchange trade funds focusing on different strategies that hold walmart in high numbers these are the etfs that have a very heavy above market weighting. Look at the diversity of the flavors here Consumer Staples very big member retail naturally Discretionary Spending both discretionary and consumer staple the vig is dividend appreciation yep. It nudges the dividend up every year and buys back a ton of stock. Low volatility but high momentum this tells you all the different ways you can characterize the stock thats performed very well i think it tells you theres something for everybody in the name it could also mean theres a lot of ways that a stock like this can get crowd in the short term maybe thats something of what were seeing in this intraday reversal to the down side. Seems to me your theme is a little political we got some slow arrogance going. Some political catch phrases, campaign slow arrogance. Yeah, you got it target is trading up 2 today whats the read through here to broader retail i think basically i told you domestic comps that walmart put up say good things about the environment right now for traffic. Target a cheaper stock relative to walmart as well within that staples bracket, would walmart be the most expensive on a pe basis . I wouldnt say that walmart is 24, 25. Proctor and gamble could be higher than that costco is higher than that on a pe basis but its up there. Mike, great stuff thanks so much after the break, apple rising to another record high in todays session but one firm just hit the name with a rare downgrade. Well tell you why next. Ou and kara swisher talks to us abt ubers challenge and what it means for the gig economy ctu, were creating state of the art, 21st century transportation hubs, kara swisher and committing to lowcost clean energy. With infrastructure built for the future, the companies of tomorrow can thrive here today. See your future at esd. Ny. Gov. The companies of tomorrow can thrive here today. Ive been a caregiver for 20 years. No two patients are the same. Predicting the next step for them can be challenging. Today were using the ibm cloud to run new analytics tools that help us better predict and plan a patients recovery. Ultimately, its helping thousands of patients return home. And who doesnt love going home. Time to get word on the street. Maxim group giving apple a rare downgrade to sell. Firm sees risk of the apple watch stagnating following googles plan to buy fit bit apple is down today. Berenberg initiating beyond meat with a buy rating of 100 price target they say beyond meat is well positions to capture share Goldman Sachs downgrading kraftheinz. The firm says the company has understand invested in dairy and protein next year. That stock is down another 6 . I think thats where we have to start especially since i know youre astrattracted value this was a darling for many years. A big component of my benchmark. I didnt hurt it not owning it. The company just didnt invest they cut costs and cut costs and cut costs and the entire industry was left behind because they didnt cut costs. They were innovating they didnt innovate now 6 billion down to 2014 levels the stock is up 15 since the quarter. Its a sell. I dont think you can own it right now. Its yielding 6 on the dividend to the maxim note on apple is the stock vulnerable given the run up its had to date . It could see a pull back. Stock is up 60 . Traded 20 times which is not expensive but relative to its historical average it has. That said the company has changed. Its not just a Hardware Company any more we know service and payments if youre going to compare them to a payments name versus paypal or visa the stock is cheap i one you want to take some profits. I think you want to be involved in the name. Apple off half a percent today. We got 34 minutes left to trade. S p is positive. Dow is just negative coming up we have your last chance trade stephanie is picking a retailer thats up 30 . Nvidia gearing up to report earnings after the bell. Well see if that run continues when the numbers hit the tape. As we head to break heres a check on bonds another down day fortressy yields ten year sitting just above 1. 8 celestialing bell will be right celestialing bell will be right back. My parents never taught me anything about managing money. The amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. Welcome back just over 31 minutes left of trade. Any positive close for the dow and s p would be a record. At the moment s p just looking set for one. Here are the he key things driving action trade concerns is in focus china said both Countries Holding in depth discussions new data showed the biggest rise in Producer Prices in six months and mixed bag for earnings cisco and walmart losing steam time for a cnbc news update with sue herera sneers whats happening. A second victim of the High School Shooting in escalator, california has died. The Los Angeles County sheriff says a 14yearold boy died at the hospital earlier a 16yearold girl died from that shooting a student gunman shot five students and then himself. He is in grave condition House Speaker nancy pelosi accusing President Trump of bribery during her Weekly Briefing she called the first public impeachment hearing a successful day for the truth. The bribe is to grant or withhold military assistance in return for a Public Statement of a fake investigation into the elections. Thats bribery a copy of the month a lisa i expected to sell for up to 90,000. Thats the news update at this hour morgan, back down to you i dont get that. 100 grand when its not credible somebody could do a perfect photograph they could given the technology we have if its not the original its not. Nope but a very good copy but a photo would be even better anyway were wasting time here thank you so much. You got it guys at least you can stare at it and its not under glass and surrounded by crowds lets sends it over for mike santoli for a second dashboard our happy days are here again. S p 500 has really just levitated. Weve been hovering at the highs. No dips have taken hold in a substantial way. This is a longer term chart. The Investment Group pointed out were in the mode of having 25 Straight Days where the s p is above its ten day average. We had no two Straight Days of declines these spans are marking of points in history since the early 90s when we had similar conditions in place. So right here, you know, obviously in the midst of an uptrend the rule is youre not seeing anywhere near a major market top although you had flattening out you had time to buy the market at a similar level once you got to this point but it really was more a pause on the way up obviously you wouldnt say this many instance made it statistically significant but it does address that concern. When you look at the market being a little bit extended above its recent trend does that mean its about to topple in a significant way . This would argue probably not. Stephanie, whats your take in terms of this momentum indicator and the fact were treading water a little bit at the moment do you need to see the momentum to pick up a little bit to be confident . I dont know. Im not a momentum investor. Im a Value Investor im excited when cyclicals lead because thats an indication the economy is doing better. Or that the Global Economy is actually stabilizing to me that means more than just the momentum stocks and high priced stocks do well. They are very crowded too. We have to see a repositioning lets see where these valuations come on the momentum side of things and maybe they get more attractive mike, thank you senator Elizabeth Warren out with a new campaign ad targeting billionaires and featuring names familiar to cnbc leon cooperman was on Halftime Report earlier with his reaction i tried to stay on this high road if you keep up with this baloney i may be forced to go to the low road i have no problem to pay higher tax. You want to move me to 50 from 37 thats fine. Ill pay whatever taxes are asked of me and ill do what i have to do but your attacks are directed to the wrong person, and on the wrong issues former Goldman Sachs ceo tweeting surprised to be featured in senator warrens campaign ad given the severe critics she had out there. Not my candidates but we align in many issues vilification of people as a member of a group may be good for her campaign not the country. Maybe try balancism is just in her dna. I get the point hes make. There is sort of this notion of class warfare thats to be had in the rhetoric. Not too sure i feel about that last line about try balancism. A little bit below the belt speaking of low roads. Its always lloyds attempt at witiness which he usually hits pretty well the point, i think, which always stands out for me is that particularly look at the campaign ad and the clips of these billion injuries thats used by senator warren is the fact that you use clips of them saying i dont want to pay a wealth tax implying many dont want to contribute more. All of them suggest they are happy to pay more tax its just the way they are delivered its misleading on the point of the advertisement. Absolutely. Either way given we know thats how politics work these billionaires are feeding the story by doing interviews at all and actually the person who should be most annoyed is Bernie Sanders because Elizabeth Warren is just eat this up as her topic and at the moment her incentive has got to be i have to win all the progressive votes. At the moment this is annoying Bernie Sanders more than annoying anybody else. To your point i think this is so personal, shes made it so personal and really focusing on a couple of people when theyve all said they want to pay more, just pay more if they know where the money is going where its going to be directed. Thats what i heard from some of the responses. This whole thing is a little uncomfortable, quite frankly, to be frank with you. I was going to say by the way this has gone on as long as politics have existed, this is manipulation of information. Lloyd says hes willing to pay more hell be on the Halftime Report next tuesday up next we got your last chance trade. Stephanie is look at a discount retailer thats up 30 Charles Schwab say new account openings rose 30 in october from the prior month after cutting staff Trading Commissions to zero. That stock is up 1 . Coming up well discuss if free is the key to gain the younger investors. Closing bell will be right back you should be mad they gave this guy a promotion. You should be mad at forced camaraderie. And you should be mad at tech that makes things worse. But youre not mad, because you have e trade, whos tech makes life easier by automatically adding technical patterns on charts and helping you understand what they mean. Dont get mad. Get e trades simplified technical analysis. By the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. Welcome back. 21 minutes left of trade tjx i like the stock for a very long time its up a lot. It is i liked this company for a long time. Im very positive on the consumer these guys are the number one player in the retail place they are benefiting from high inventories of Department Stores they have strong execution solid same store sales this is not a play on next weeks quarter, although i do expect to it be good, but a play on them gaining market share internationally. I think thats the part of the story thats not appreciated so, it is a little rich at 20 times but trades at a discount to its peers you still got costco and walmart. I do. Whats you preference tj. I love costco. 32 times hold. Walmart the story has largely played out and sits here for a while. Tj, people are wonder if they can execute in a challenging environment. I like this one. All right there you haste. Tjx. Parents company of home goods which if youre a homeowner in the suburbs youve been to we got 20 or i should say 19 minutes before the bell. Here is where we stand right now. Any positive close for the dow and s p would be a record. S p is higher by three points. Were watching that one closely. This is the last commercial well take before the close. Well bring you uninterrupted coverage of the final trade. Thats coming next do you have concerns about mild memory loss related to aging . Prevagen is the number one pharmacistrecommended memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. That could allow hackers devices into your home. Ys and like all doors, theyre safer when locked. Thats why you need xfinity xfi. With the xfi gateway, devices connected to your homes wifi are protected. Which helps keep people outside from accessing your passwords, credit cards and cameras. And people inside from accidentally visiting sites that arent secure. And if someone trys well let you know. Xfi advanced security. If its connected, its protected. Call, click, or visit a store today. Sometimes, they just drop in. Obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Dont get mad. Get e trade, dawg. Welcome back breaking news on google. Cnbc. Com reporting 50 state attorneys general are preparing to expand their antitrust probe of the company to include its search and android business. The probe had previously only focused on googles advertising business you can read the article on cnbc. Com the stock is still trading higher intraday. It was up 0. 7 last time i checked. Still around that level. Mike, quick take on this i mean its not huge specifics here but another sign that the regulatory pressure is very real for these companies. If youre examining the advertising business, i mean search kind of feeds that entire thing and privileging of search results in certain directions has, i think, been understood to be part of the issue of course the android eco system its going to be one to watch too with this fit bit acquisition in the works as well its 14 minutes left until the close. We are now in the closing bell market zone. Commercial free coverage of all the action going into the close. With that 14 minutes left were just about set for another record all time closing on the s p. Likewise for the dow which is just lower set to miss out walmart, volatile day of trade after hitting a high earlier in the day. Reporter most analysts are impressed with walmarts quarter. Jpmorgan said on squawk box stock evaluation is pretty rich. Didnt expect to it move higher. Shares for walmart up 30 yeartodate focus continues to be on the strengthening of the u. S. Business with comps higher for the 21st straight quarter in a row with both higher in store traffic and net u. S. Digital sales up 41 this quarter. Grocery, again, the big driver in store and online as the retailer expands its pick up and delivery option. Walmart upped its full year Earnings Guidance but thats on todays Third Quarter beat rather than expectation for the holiday quarter. That one stayed the same back to you. Thank you mike santoli, stock moved lower. Not quite good enough we went into this with estimates going up and the stock at a high i do think you got this little bit of a spill back after good news it shows you on a short term basis, you know, people were filled up with walmart. Weather as it got colder their apparel business picked up substantially. That bodes well for other retailers. Canada goose not feeling that that price point is different than walmarts boeing, pilots union for Southwest Airlines questioning the timeline of the return of the 737 max. Phil lebeau has the details. Reporter this is a question of how quickly the max comes back into service. The pilots union put out a note yesterday, the head of the union signed by all pilots and questioning whether boeing is rushing it when it comes to getting the max certified by the faa. Boeing has said and maintains look its the regulators that will make the final decision there was some salty language from the pilots june head. Boeing will never and should not ever be given the benefit of the doubt again. Take a look at shares of boeing, remember the max they hoped it will be certified by the middle of next month and southwest has it pulled from the schedule until early march. Guys phil, when the compensation amounts are decided between boeing and the airlines, will that go right into terms of the timeline when the faa reapproves it or back in the air if the airlines decide to take an extra month or two months will boeing have to pick up the tab for that. Reporter i want will go beyond certification at the end of the day what has to be negotiated not just between boeing and Airlines Southwest pilots said we want compensation not just airline we want compensation for not being able to fly this plane it will go as far as they see an after effect lets say they cant fly the full compliment of planes in july im throwing out a hypothetical date can you bet that any airline that is seeing that impact will go back to boeing and saying were seeing an impact on our bottom line, youll have to compensate us for this phil lebeau, thank you. Steph, youre an owner of boeing shares stock is up 1 despite a letter like this. Also had a very nice week were getting towards the end even if that end drags on for a few more months. Absolutely. Thats one of the reasons why i added to it. Were getting closer whether its december or january or february for that matter. The story sue get this plane back in the air and their cash flow story completely changes. I want reverses. Not right away but the valuation losing 40 billion in value over this i think is very extreme and most important thing is people are under positioned in this name Portfolio Managers are one weight ate big name its a number one position it is going to be a rush to cover. Under weight . Surely from start of the year it was a massive overweight for everyone and that made a big difference it over extended on the down side anticipate thats why i bought it. We got just under ten minutes, nine minutes left of trade. Weve improved in the last ten minutes or so to get the dow fractionally positive. Shares off Canopy Growth fell after a reported quarterlily loss reporter shares of canopy falling double digits after reporting a greater profit loss than expected and take a charge of 48 million in Canadian Dollars for unsaleable inventory and return of products the ceo called the Canadian Market challenging blaming a lack of retail outlets while appearing on squawk alley this morning. The company beat on revenues and hope they will release drinkable cannabis products later this year it is expected to double in 2020 back over to you frank collins, thank you. Mike santoli, i mean, talk about names that have over promised and under delivered in recent months this one really the whole group, the market got so over excited about the prospect of legalization and Everything Else and just built these tremendous ovals on businesses that werent really ready for primetime the idea of like lack of enforcement on the legal front isnt helping. I often wondered at the end of all this if you get the legalization what do you have . Its an ag business, its not all that exciting even though its a big societal shift. But a lot of demand for your product. If its full legalization, they just have stretch valuation. You have to figure out what the overall market will be its a competitive market you dont know who will win or lose they are pouring through cash like theres no tomorrow carl icahn said xerox how old push with its plan to buy hp. He thinks the deal between two is a no brainer. Hp said they are aware of the investment and want to do whats in the best interest of all shareholders xerox made a bid for hp which is three times its size shares of both companies gaining as investors speculate that icahns investment in both Companies Increase a deal happening. One of the thing thats been reported in the offer yes you can cut costs but how long could those synergies be and what does it mean in term of jump starting growth synergy is key. He said theres synergies to be had. You bring up a good point. As you have an acquirer buying the company threetime its size financing is the tricky thing for this company f for xerox. One thing to get banks to finance it is through those synergies and explain how you see this deal Going Forward and being more profitable. Youre right thats the key part to this deal getting dpoen it go done if it goes forward. Are the synergies to the upside as word first got out about this potential combination both stocks go up you have companies that are priced for permanent decline, if you put them together you can cut costs more strategically, spread the risks, decide,000 shrink in a smarter way if that is what is require what are the Growth Opportunities . No worse than if these companies are separate it just makes sense. Kind of an Investment Banking 101 type of deal even though it doesnt necessarily create some kind of wonderful long term Growth Business. Stephanie, would this be good cost energies, yes, synergies no now a Bigger Company that has struggles. I just think to the extent you want to play this from the cost side i get it. Dont expect this company to grow any differently just under fire minutes left of trade the dow just slipping as the nasdaq but the s p set for a record all time close. After the bell well get results from nvidia. Reporter expectations are high ahead of nvidias third carter repo Quarter Report its up 50 57 this year outperforming its peers in the chip sector. Analysts will want to know whether its still gaining market share in gaming and data storage, two areas that have fueled growth for nvidia in the past and a status check on its kicks for mellanox pending approval from chinese regulators that report coming out after the bell, guys thank you well be looking for those numbers in a short while in the meantime when we were talking about semiconductors and autos, this is one of those other names that has ref new tied to them about 8 of total revenue real story is gaming did that start to grow again what kind of visibility do we have on data center . A couple of companies have had positive commentary about the data center, so i think it should be better but its up 50 and trades at 40 times high expectations. Mike, in terms of the implications for the economy from nvidia and others like cisco what are we thinking now i wouldnt say they tell a clear story about the economy. They say a lot about their individual categories. Cisco is probably a little more susceptible to Global Economic fall but it shows you the different product categories are in a different position of strength than weakness semis were the new transports i thought. Industrials or whatever you want to define them as but i think if thats true, but, you know, what networking equipment. Should be playing in there mike, you have more on the market internals in general. Another day where the major indexes are hovering near the highs. Look at the up versus down on the new york stock exchange. Theres been this steady under tow of selling for days as weve been treading water. Thats a concern defensive tone once again as yields have been contain you look at banks against utilities. Thats a pretty good toggle in terms of whether its offense or defense. Utilities outperforming handedly we see an uptick in volatility not much off the loss but still at 13 yeartodate basis maybe its bumping along the bottom two minute left anything positive on s p and dow. S p holding on naloxone hydrochloride 0. 2 of gains for a record at the moment its in the red. Lets check in with Rick Santelli we only have six and a half weeks left of 2019 i thought a yeartodate view would be interesting were down 86 basis points look at a yeartodate of bunds. They are down 59 basis points. Dollar index up two cents on the year up a little over 2 correspondens if youre long stocks or treasuries youre making money if you bought the dip at lunch youre looking good on the nasdaq thats kind of a mixed picture particularly in tech cisco weighing things down chuck robins talk about the weak macro outlook. The outlook there is sinking the stock. On the other hand you had metap. Its a gainer today. Under the radar, cardalytics Morgan Stanley downgraded the stock its very close to that 58 high price target. Over to bob. Reporter bottom line here is we look like well hate new high on s p but comes on very light volume again and very low volatility s p has moved bat 25point range in the last eight or nine trading session. Thats extraordinarily low volatility we got walmart today jc penney tomorrow i dont know what they will say about righting that ship its over 1 that stock was in danger of being delisted because it was below a dollar theres the closing bell s p 500 will eke out a new high. Dow jones industrials average either side of positive and negative now welcome to the closing bell. Im wilfred frost. Im Morgan Brennan along with mike santoli lets check in of where the markets closed almost too much to hope for potentially another bang on flat for the dow but as you can see up 0. 004 but thats a record s p taking those into another record closing high. The nasdaq just missing out. Russell is a miss from its record close materials or utilities led the charge transports were higher by. 3 . Were moments away from an Earnings Report from Applied Materials and nvidia joining us to talk about the market day, james bianco and stephanie link but first, mike, lets start with you the fact that we closed at records but oh, just barely. Yes i do think the real message the market has flattened out, refusing to pull back in any substantial way. Its managed to stay right in the range of all time highs without really having much force behind these moves so i think you have to say thats a net positive that the market is refusing to come in. On the other hand, the ten year treasury yields is down. Its defensive sectors are working. Using up a lot of energy to tread water before we take a break and a rest for the next move higher. The dow looks like its settling just negative as opposed to positive albeit by less than half of one point. Need to go to three decimal points to get the negative in percentage terms jim, i come to you you feel this rally can continue yeah. The market has got the momentum going with it right now. No reason to try to fight that momentum as michael was saying very little volatility. Never short a down market. Bond market, youre seeing some pretty intraday and daily moves there. But, yeah, path of least resistance seems to be higher. Stephanie, whats your take on this market im surprised were at new highs given the Economic Data we got overnight with china across the board disappointing china data, japan gdp, even germanys gdp, okay was better than expected but. 1 just out of recession dedidnt have a massive decline in the market or a rotation in defensive. Utilities did lead but banks rallied. In the face of seeing bond yields where they are going. Is that whats driving this market right now this theme of whether were bottoming and the data is worse whats happened. I believe were seeing stability. Data overnight, most recent data in china was very disappointing. Some believe that come december were going to get more stimulus from china and that will, obviously, stabilize things. You need trade you need trade and more stimulus to have it happen. Breer in the process of bottoming but not accelerating new data, 37. 6 of baby boomers were over invested in stocks during the quarter including 7. 3 who were solely invested in stocks the 10 year bull market led some individuals to invest in more stocks than recommended and expose them to unnecessary risk physician the market experiences a downturn an interesting take given that for a lot of this rally weve been pointing to the fact that cash levels in general are high. Cash levels remain high and floss have been generally net out of equities as opposed into fixed income the reality is that the stock market, s p 500 turned 15 annualized for a decade. Just the sheer force of those balances going up, it requires an older investor, if youre nearing retirement to trend back on stocks. It is based on fidelity says if somebody is overinvested or not. It fits in with what we hear bond yields are solo, stocks can serve that income for retirement to that point what do you make of this report . If you are trying to get some sort of yield here you can see how it would have gone over weight on stocks exactly i agree with mike, with the market rallying youre wading in stocks grows and grows you have to make an active decision to sell that and go into bones no one wants to do that even though bond yields are low most people invest in them its not surprising. The other thing to keep in mind as wilfred frost said, only 7 are invested 100 in equities. They are in some mix of stocks and bonds. Not everybody is fully to the wall for the stock market. Charles schwab says new account openings rose 30 in october from the prior month other major firms quickly followed and in the last month swab, e trade and Td Ameritrade are all higher by 10 or more. Look at that stephanie. The fact weve seen a rally like this is the reason we hear there was worry there was worry about tech disruptions, some of these start ups, with cuts to zero the fact that names like swab have increased their base off of this is that what investors are reacting to here rather than the money to be made or not made i think so. They got over sold they tanked big time when the news came out. Race to zero is not a good sign. Profitability is hurt. At these valuations its okay if its priced in more important thing is what do you think will happen to the yield curve . These Companies Need a steep yield curve and were seeing it steepening thats in their favor. Thats a big part of how these stocks trade so well have to watch that. They are doing better because the fed cut rates. Right i also would say how big are these accounts youll see after the quarter what the net asset floss are you can do a zero percent, open up a lot of accounts i doubt they are of a size where swab is making much money. But as we discussed this type of trading didnt make up a large portion of schwab. More interesting thing that we made the point on, clear takeaway is this is probably bad for robin hood and if youre seeing Charles Schwab picking up Young Millennials wont be good for robin hood and could be the ultimate takeaway. We got earnings lets get to seema modi. Reporter here what you need to do about Applied Materials. 4 cent beat on its bottom line it came in well above expectations q1 guidance also very strong moved by growth and foundry logic and d ram chips. I want to point to growth internationally, it continues to see strength in china making up 32 of its net sales ceo and president saying Semiconductor Industry is increasingly adopting a new playbook for improving chip performance. The stock building in ilts gain. Up nearly 4 about 75 so far in 2019 and now we await results from nvidia back to you. We do, indeed whats your take on this one as seema mentioned a great performance. It has. Trailing along with the overall picture of the semis which is predicting an inflicection on overall demands. Siliconization of the world. To that point in terms of what weve seen from Earnings Results in the season it has been the makers and manufacturers of the equipment for semis that have seen the strongest numbers. Because they got hit so barn hard we annuity would be good i want to hear about on the Conference Calls are we seeing a bottom so these stocks are up a lot but also down a ton last year. Got slaughtered in december of last year. Valuations at 16, 17 times not that commanding now that youre seeing an inflection in earnings thank you both for joining us up next the state probe into google taking another turn as attorneys nel geraexpand their scope. Well discuss that with kara swisher. Dont go anywhere thats coming up next. New york state is taking business to the next level. Supporting Innovative Companies that will shape tomorrow and Building Workforce development and tuitionfree College Programs to generate the talent Companies Need. With a 150 billion investment in state of the art, modern infrastructure, and a nationleading commitment to lowcost clean energy, new york is doing more than any other state to build for the future of your business. New york state, the state of the future. Learn more at esd. Ny. Gov. Cnbc. Com reporting 50 attorneys general are expanding their investigation of google. How significant is this expansion from what it was and fact that its in the states ag probe as opposed to something more federal these state ags are very powerful you cant study their advertising business without running right into android, without running right into search its all systemic throughout this company very hard to investigate one part without pulling on a thread to the other their dominance in search, dominance in advertising, dominance in the mobile operating system, its all connected. Im not surprised they have to go there because they are related to each other. Given that fact what do you think it does for fit bit acquisition. It depends. It depends on what is it if they can prove they are competitors in the market thats a separate marketplace with that acquisition theres areas of Health Care Data information about location thats a privacy issue more than anything else. You know, the questionis shoul there be a moratorium on these Companies Buying anything if they have a certainmarket share. These will be worked out in the next couple of years whether its through the department of justice, ftc, federal legislation or actions by state attorneys generals and states themselves youll see action every where coalescing around the same thing. Some of these problems can be met with legislation, some with fines, some with antitrust action and some with breakup it will depend but this is the beginning phases of investigation and you have to look at search and android if youre going to look at advertising when it comes to google and facebook and other companies. What do you make of the google Citi Partnership for checking accounts . They just keep going. Thats the thing about these companies. Not just google. Facebook announceed a new payment thing. Apple is moving into Health Care Amazon is moving into health care these companies are so massive they need growth and two areas that are big are finance and health care. Youll see them move into both of these areas in a strong way im not surprised, you know, especially because, because its where the money is but they are also announcing a Health Care Deal at the same time which google has tried many times to get into. So they need growth these companies and this is where they will get their next billions of dollars where they think they have to expand their cloud offerings and ai offerings i want to get your thought on this report that uber is getting hit with a 650 employment tax bill in new jersey do you think this is a sign of more the to come in term of states cracking down on basically the filing of employees and what that means for tax bills . 100 . What amazon faced a couple of years ago around taxes a lot of these companies will face whether the people that work for them are employees or not. We probably have to think as a nation of what an employee is and what rights do employees have and what benefits should accrue them. Because essentially all of us everybody who use as uber, everybody who gets something from a take out service, youre doing it on the backs of people who do not have benefits and doing it for a very cheap price which is not the actual price that it costs. So its being subsidized in a lot of ways for you to mak these popular. The question is what are we going to do in the future over who is an employee, if our workforce is moving to a more gig based economy. You cant. Have a bunch of serfs working for people for no benefits or anything else. It has to be thoughtful and there will be a lot of action by governments on this because this is in a government wheelhouse to deal with. One of the pivot Goldman Sachs apple credit card as to whether or not decisions to extend credit was sexist or not. Where do you stand on that and how much of a response has come out from both Companies Thus far which is certainly kind of taken the focus at least in the short term way without a full kind of recognize correction of this issue these companies have to think a lot harder apple needs be more transparent along with Goldman Sachs how they do these credit decisions theres a lot of complexity and may not just be what you think has been reported already. I heard from lots of sources around who is authorized user of a card, not just your credit card that matters in these decisions. If its a company like apple it would behoove them to start explaining to people why they have the credit score that they have rather than be captive to the system that we have that is confusing to everyone. I dont understand my credit score. I dont get it its like a black box. So really to understand how you are judged by these companies and credit would go a long way so apple could use this as an the opportunity to really, like, clean up the system wane and offer other ways to do credit and im hoping thats what they will do. Its a company that often tried to be innovative in areas. In this case it was a real stumble for them not to understand all the consequences of what might happen when you move into a totally new business that youre not familiar with before yeah, certainly puts apple and goldman under the microscope kara swisher, always great to get your thoughts. Thanks for joining us. Still ahead apple shares may be soaring but its dividend yield are at a seven year low. Find out what that says about the outlook for apple stock. Minutes away from nvidias earnings weldiuss l schow to trade the stock when close bell returns. Im happy to give you the tour, i love doing it. Hey jay. Jay . Charlotte oh hi. He helped me set up my watch lists. Oh, hes terrific. Excellent tennis player. Byebye. I recognize that voice. Annie . Yeah she helped me find the right bonds for my income strategy. Youre very popular around here. Theres a birthday going on. Karl he took care of my 401k rollover. Wow, you call a lot. Yeah, well its my money were talking about here. Joining us for karaoke later . Ah, id love to, but people get really emotional when i sing. Help from a team that will exceed your expectations. We send it to mike santoli for his third dashboard of the day. Calling this an apple in every bowl not a chicken in every pot. Apple is the favorite stock right now. Its been on a tremendous furious run. Stock was up ten days in a row finished higher than it closed although today it cooled off a little bit the dividend yield on apple shares, this is when apple first initiated a dividend in 2012 dont Pay Attention this at this point they didnt have a full year of dividends annual dividend yield this is your trends and thats pretty much an all time low below 1. 2 . What does that mean . The market is revaluing apple as a growth story the dividend will go up from here but not so much about getting that yield and feeling its a cheap stock its another marker of a rerating of apple shares back to the premium to the market the question whether its justified or really is a bit of a stampede into a big popular name whats the cash back be what are they doing 50 billion a year . I dont know the exact number. But its not tremendously higher just because the market cap so far is over trillion dollars had a pretty big pay out in order to get that denominator. We got a news alert on Warren Buffetts Berkshire Hathaway it shows what the fund manager did during the Third Quarter of the year. Most notable i would say from this filing is a stake in rh, Restoration Hardware worth about 210 million at the end of the quarter. 1. 2 million share stake. So small by Berkshire Hathaway standards but nonetheless causing that stock to pop about 6. 7 in after hours trading. Parred back a stake in apple and octobercy de occidentsal petroleum. Wells fargo, they parr pared is stake back he keeps getting up to the threshold. I think we can read this more as a portfolio adjustment as any kind of negative sentiment regarding wells fargo. A lot of buy back going on in the banking space so he has to trim a little bit to keep below 10 . What about any kind of signs of cash levels overall whether thats come down significantly or not ill get back to you on that. Im not sure we havent had a chance to pull the cash levels out yet. He has taken some new stakes and paring back is where hes deploying capital. To give you and exact number ill get back to you on that still to come former walmart ceo bill simon gives us his reaction and broader outlook on reaction and broader outlook on the Holiday Shopping seen. He la. No commission. No matter what you trade, at fidelity youll pay no commission for online u. S. Equity trades. cause no matter how far away for you roam. Ys. When you pine for the sunshine of a friendly gaze. For the holidays you cant beat home sweet home. The United States Postal Service goes the extra mile to bring your holidays home. By the way, shes the it wasnext mozart. G day. As usual we were behind schedule. But sophies enthusiasm cannot be dampened. Not even by a runaway donut. We powered through it in our toyota prius. Because a stars got to shine, no matter what. Its unbelievable what you can do in the prius. Toyota lets go places. [maniacal laughter] gold. Gold right, uh. Thank you, for that, bob. But i think its time we go with gbtc. Its bitcoin exposure through a traditional investment account. Nice rock. Its time to drop gold. Go digital. Go grayscale. The amount of Student Loan Debt i have im embarrassed to even say i felt like i was going to spend my whole adult life paying this off thanks to sofi, i can see the light at the end of the tunnel as of 12pm today, i am debt free we have no debt, we dont owe anybody anything, and its fantastic welcome back to closing bell. Nvidia earnings is out stock is higher in after hours trading. Reporter a volatile session. It was down 1 now up 2 nongap earnings of 1. 78, well above expectations revenue up 3. 07 billion which beat the street. Revenue guidance is weak for the Fourth Quarter and as to the acquisition of mellanox for 7 the company says its in discussions but the closing of the acquisition will occur in the early part of calendar 2020. Looking at specific growth segments, just want to point out for data center, it sees Strong Data Center growth ahead driven by the rise of conversational ai and inference. Well have to get more commentary on the Earnings Call which comes up at 5 lone 30 p. M. As to the health of this segment which has seen year to gather declines stock is up 2 back to you. Thanks so much for that. Time for another cnbc news update with sue herera sneers whats happening. The fbi and d. C. Police have arrested a man who they say is the Potomac River rapist and killed a woman the suspect is 60yearold Daniel Warwick and arrested in South Carolina more people are being diagnosed with vaping related lung injuries. Cdc says as of november 13, 2,172 cases have been reported in 49 states this is an increase of 121 cases from just last week and so far it leaves 42 deaths that have been confirmed in 24 states. Kentuckys governor has conceded the Gubernatorial Election this after a recanvassing of last weeks vote he said he and his team will work with governorelect to ensure a smooth transition were going to have a change in the governorship. Based on the vote of the people. And what i want is to see the absolute best for kentucky im not going to contest these numbers that have come in. And you are up to date. Thats the news update at this hour back downtown to you thanks so much. Walmart finishing the day lower after reporting q3 earnings today. The company beat on the eps line and saw its ecommerce sales grow by 41 grocery business being a driving force behind that growth walmarts jump in online sales come as further competition. Lets bring in bill simon former ceo of walmart u. S thanks for joining us. Good afternoon. How are you very well, thank you. We should mention walmart did finish down but hit a record intraday before doing that was this a strong result, bill, or disappointing given the shares ended lower well, i think walmart has been doing exactly what they were going to do they are investing heavily in ecommerce and running a very good business. The u. S. Business is really, really doing well. Greg in the time he was there has done a fantastic job been carrying a the company for a while. Allowing them to invest in ecommerce. So they are delivering the plan that they said and if you like that story then youre buying the stock. The fact that there is going an executive leadership change before the year is out, what do you make of that well, any time theres a change it becomes another variable that you have to try to manage craig did a fantastic job. And the one who is coming in is a lifer with the company the last five or six years hes been out of the u. S. Business. Hes been in international and been at sams club so running the u. S. Is a big monster that needs to be wrestled and thats the engine thats been driving the company so i think john has his work cutout for him but hes a talented guy earlier today the president tweeted along the lines of the fact that the tariffs clearly arent hurting walmart is that fair well, i think the evidence would suggest that ive been sort of saying that for a while now. Last quarter walmart, target, amazon all beat and raised guidance so far walmart has beat and raised guidance and they are the ones that tariffs would be impacting if it would impact consumers. So far retailers have been able to mitigate or absorb the cost many of them and almost all the companies im working with are trying to find ways to move supply lines so that they are not exposed to tariffs thats going to be a difficult problem for china. If these supply lines move china wont get them back for decades. They will move and stay moved. Im optimistic thats going to result in resolution of this trade discussion pretty quickly once china comes to that realization. Looking at the ecommerce numbers is it fair to say that at least at this point in time walmart is winning the grocery delivery wars . Yeah. I think so you could say that you know, grocery is the most difficult part of retail its much more complicated to get bananas from Central America to every zip code in the u. S. Before they turn brown than it is to deliver a book or a package to someones home. So walmart has the infrastructure, he in built that infrastructure now 30 years or 40 years to be able to deliver fresh food to every zip code in america. So its not that much of a challenge for them to deliver it the last mile or particularly right now its driving their business, the order online and pick up in store they got that infrastructure and really nobody else has hat site doesnt surprise me that they are doing well long term, fast forward five years how many will be doing nationwide grocery delivery hard to say i think goingts to be tough in that five year horizon for anyone to do it nationally the way walmart has the ability to do it. I think others might do it very well regionally. Many will do it well in dense urban markets. Amazon will do it well in markets where theyve got the ability to deliver that kind of density. Every zip code in america, i think in that five year horizon walmart will still be doing very well on the call today, bill, the challenge right now, one of them anyway is for walmart to try and expand that success with order online and pickup or maybe direct delivery of nongrocery items. Is that a different type of challenge given the fact that, for example, amazon is already, you know, so well established in that area. It is i think what doug was talking about was the thirdParty Business, the marketplace business amazons book beyond their first Party Business is just enormous and natural drives an incredible amount of traffic to their site. Thats really where walmart is at a disadvantage is that traffic and that traffic is coming through thirdparty sellers. Walmart for many years has been trying to build that thirdparty book of business but its difficult because they compete with those guys. Bill simon, great to get your take on the heels of those results this morning thanks for joining us. Happy to be with you. Still ahead find out how major consumer put companies are teaming up with ontoe y maker to win the brand loyalty of gen z brighthouse smartcare℠ is a hybrid Life Insurance and longterm care product. It protects your family while providing longterm care coverage, should you need it. So you can explore all the Amazing Things ahead. Talk to your advisor about brighthouse smartcare. Brighthouse financial. Build for whats ahead℠ brighthouse financial. Owning and running the biggesta Small Business is finding the right people. In hiring our first recruiter, we decided to post a job on linkedin. They had to have worked. At a recruiter firm and be bilingual. When we saw ana marias profile. She had a ton of experience in hr. The interview went really well. And she seemed like someone who could really sell mckenzie to perspective employees. We found the best person to find the best person for us. Post a job today at linkedin. Com grow the amount of Student Loan Debt i have, im embarrassed to even say. We just decided we didnt want debt any longer. I didnt realize how easy investing could be. Im Picking Companies that i believe in. I think sofi money is amazing. Thank you sofi. Sofi thank you, we love you. Welcome back. Were getting new developments on trade talks with china. Reporter we just learned that ambassador robert lighthizer, treasury secretary mnuchkin and chinese vice premier will be holding a negotiating call tomorrow friday as talks progress ahead of a selfimposed deadline by the white house to have an agreement by this weekend. This news is according to the usda undersector for trade who made these comments in an interview on the sidelines of an industry conference. Its unclear what will be produced from this call whether it will yield any results but u. S. Farmers are line up with their products to sell them to china if and when the green light is given and he predicts a better than 50 chance that the two sides can overcome their differences to reach a signing of this phase one deal the market is closely focused on any development. Well try to get more detail on capital the agenda is for this call but will be closely watched tomorrow as we await any news on how close the u. S. And china are on this phase one deal and whether they can overcome this stalemate to get to a signing. To meet their selfimposed apec time is that a preld agreement as opposed to the physical signing which comes with logistic cal issues at this point its hard to envision they can get an in person signing you never say never because these are World Leaders that travel by private plane. But if they do want to have a full fledge press pool media frenzy big type of event that they had been envisioning for this signing summit you would think it would need to be at least a couple of weeks out. A month ago we were told this deal was fully negotiated and just needed to be written but there are outstanding items that are not negotiated and they need more time to put those in writing once they reach an agreement. Kay lashing thank you sure meantime nvidia earnings are out. Stock is higher after beating wall streets earnings estimates but issuing weak Fourth Quarter guidance lets bring in james wang. James, thanks for become with us are you surprised to see shares higher not so much i think the quarter came in okay i think a few things, one verification was on Data Center Growth is back in acceleration mode and it is, sequentially it grew quite nicely you are mainly focused on data centers, is that right . Yes nvidia is principally an Artificial Intelligence story. Strong Gaming Business as well where people are really excited is the market thats being created and every where you look at these ai, conversational bots, Machine Learning training thats where the growth will be for the next few years the company says in the release that for q4 guidance strong sequential growth is expected in data center but offset by seasonal declines and softness in gaming platforms how much of a concern is that . I think its a short term concern. These gaming trends, and buying trends come and go and its very seasonal you know they released their gpus recently and they have done very well. Key quarter is kind of heading in to the holiday season, can they really get traction on aaa games and gamers buying space on that we dont focus too much on that because it tends to be very cyclical we think the Gaming Business will be a Growth Business in the long run but focusing on data center and auto is where its going shift the narrative and valuation for the stock. James wang, thanks for joining us up next the most wonderful time of the year for one specific part of the market, at least. Mike santoli heads to the telestrator with that. Big brands going small. They are betting on boys to build brand loyalty with gen z well explain that coming up on fast money a top technician says its time to do the unthinkable time to sell one of wall streets most beloved stocks [grunting] keep going, keep going. [maniacal laughter] gold right, uh. Thank you, for that, bob. But i think its time we go with gbtc. Its bitcoin exposure through a traditional investment account. Nice rock. Its time to drop gold. Go digital. Go grayscale. Doprevagen is the number oneild mempharmacistrecommendeding . Memory support brand. You can find it in the vitamin aisle in stores everywhere. Prevagen. Healthier brain. Better life. Welcome back lets sends it over to mike for the final installment of todays dashboard. Time for investors to ask if the moment to fight for little bye. People have been waiting for small cap stocks to do better. This chart shows seasonally its around the time of the year when they do better so the top, this is essentially, when this line is going up, small caps are doing better. Russell 2000 is outperforming the 1000 here we are in november, ahead of that january effect revival of small caps. Blue line is this years ratio of small to large so clearly were roughly where we normally are. Valuation on a relative basis is starting to look better for small caps after for a long time then not looking that compelling on a valuation basis well see if this plays out. News alert on nike. Reporter nike announcing its increasing its dividend by 11 to 24. 5 cents to shareholders on december 2nd, 2019, and it comes as the stock trades in record high territory mark parker outgoing ceo of nike said this is nikes 18th Consecutive Year of increasing dividend pay outs. More company tries to put more money towards dividend amid lower rates. Quite a lot of news on nike bit more focus on its own Online Platform one of those stocks its a matter of practice. Nike has bumped its dividend higher by a couple of cents every year its one of those Growth Companies people feel kit do it all. Buy back stock the core growth is okay. Nike flat in after hours trade on that news up next Building Brand loyalty, some of the biggest household names are making a major push to appeal to gen z and somehow become one of the hottest toys, i mean, im looking how to open it the great unboxing. Thats coming up after the break. Mini brands it says hp 3 plus. Well be opening it and see what we think of it after the break ah, you could say that. So how are things with you guys . Great. Thank you. Thank you, sir. Lunch next week . Terrific. Say hi to the team. Will do. Call my office, i will. Sounds good. Alrighty. Servicenow. Works for you. Gen z loyalty is a way to remain relevant. Its working to be purpose driven and make a working to be purpose driven key priorities for that age group uni lever is among many brands trying to capture genz with Chinese Company zuru to feature miniature versions of its product in a viral toy called mini brands. And wrap the toy and find dove shampoo, skip pi Peanut Butter partnering with a toy brang allows Consumer Brands to Access Household shopper through the most influential channel of all, their children and two of those units are right here onset we got our hands on them, and actually, by the way, it was kind of hard to get our hands on them were going to open them up, see whats inside. There we. Okay. We, by the way, took the plastic wrapping off because it was a little challenging, so we did that in the commercial break. So thats still more packaging. Undo it this is supposed to be the fun part. I got a dove moisturizer mini great. I cant even get it open. Its so good. I dont know what that is okay. I got wet ones what every 3yearold wants to play with. It is kind of fun, though, because you dont know what youre going to get until you open it up. Is that some kind of a toy . Im getting like toiletries. Dont know what that is. And last one for me dove. I got four cheese pasta i have to say, if i was a kid and i got this for christmas, i would be desperately disappointed, what a terrible toy. Ill trade with you, you want the smarties. Surely kids want a soccer ball or Remote Control car. Are these on store shelves where the kid in the shopping card says can i have that and open it. I think this would be a good thing to bring to the restaurant for your child and theyre getting rowdy and you need to give them something to do. Some kids like miniature things. If any of my god children are watching, fear not, youre not going to be getting this terrible toy heres the other thing ill say about this it is a concept that has been around for a long time, not quite so direct. I think about the hess holiday trucks that you can buy every year, and i also feel like thats exactly why we have seen media and the intersection between media and toy makers, get so strong, and you have seen some of those combinations and some of those deals that have happened because it has always been about how you target kids and how you then sell goods to them. These are consumers of america. Were going to do a review on the segment in 30 years time to see if the kids of today are hooked on hostess dinettes. I was hoping for a mini spam can myself i did read that that was one of them. That was a bit of fun. That was. We have a news alert on how top hedge funds are trading and recent ipos. Appaloosa doubles down on faang and increased its ownership in amazon and facebook by 43 and 53 respectively. Appaloosas stakes in all three companies were each worth roughly half a billion dollars additionally, prominent managers selling out of ipos, soro sold his stake in lift, while third point dissolved his position in pinterest, and a new stake in smile direct club worth 10 million. Icahns confirming the journal report we discussed earlier in closing bell saying his stake is worth about 1. 2 billion in hp note that all of these positions are as of the end of september, and changed since then leslie, thank you for going through all the filings for us up next, behind the streaming wars, viacome ceo a sneak peek of the interview, and his take on the battle when closing bells returns. But in my mind im still 25. Thats why i take osteo biflex, to keep me moving the way i was made to. It nourishes and strengthens my joints for the long term. Osteo biflex now in triple strength plus magnesium. You should be mad your neighbor always wants to hang out. 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Mad money, 6 00 p. M. , dont want to miss that, bob bakish and an action packed show. They still got to convince the market that they can continue to grow their relatively small subscribers numbers, the way disney has jumped in on week one. And i think the company even combined is going to be levered to cbs, the retransmission revenue from the existing paid tv systems i think the bar is getting pretty low the stocks are cheap you put them together, theyre 1 10 the market cap of disney. If you think they have a place at all in the broader ecosystem, somebody rebundles things down the road it seems as if theres a path they can leverage what assets they have left. Disneys market cap is now twice the size of netflix, and certainly their subscribers numbers on day one seem to have hit it out of the park even though there were some technical issues its not a zero sum game but the question, i think, is going to be just how Many Services do consumers ultimately take on, and what does that mean in terms of pricing for everybody, including netflix which has sort of set the ceiling. I think for disney, the market is giving them credit that its not a zero sum game for that company, in other words, all the streaming it is additive until proven otherwise. One reason it is twice the netflix cap. Which are all up on that streaming service. The old market cap. Broader markets actually finished kind of near the session highs albeit a lot of resoundingly positive session. Just hovering and hovering and i mean, the low volatility, very very flattish action is still okay the issue is if we just have a natural pull back from here, thats 2 to 4 , back to the 50 day average or something, its going to feel like its more jarring than it is in the broader scheme i think the uptrend is in tact it could be bumpy if we retrace a little bit. That does it for closing bell. Fast money starts now. Overlooking new york citys times square, carter worth, tim seymour and steve grasso, the unthinkable, its time to sell apple and he has the one chart that proves his point. Plus, a pair of after hours chips, stock, video both on the move on earnings well break down the result skpgs lat, and later, up in smoke, cannabis stocks getting crushed whats behind the buzz skill we begin with a developing story on alphabet, taking a leg lower into the close on news o