Transcripts For CNBC Closing Bell 20240712

Youtube segment. The coronavirus remains front and center the u. S. Reporting more than 90,000 cases in a single day for the first time ever. 59 minutes to go in this session, the week, and the month. We are down 3 on the nasdaq today. Ahead on todays show we will speak well break down all of these moves and speak with dan niles and see if he is buying any of the tech nims names on the dip. Lets get first to the market. Mike santoli is tracking the action for us. What stands out . Just in the last hour or so, the s p 500 did go back down and test this level everybody has been watching. We have been pointing it out all week basically the september lows, 3,230 and change we did hit it on the nose. It was a little bit of a tag and then bounced off that. Thats what a test looks like. You dont pass every test. Keep that in mine. It is also the june highs. Also the break even level for the year so there are understandable reasons why people are clustered in this area and decide whether thats a lint of a make or break. We are also watching for signs if this is a flush of crowded positions and a rise of fear you see when corrections are running their course i think it is too early to say decisively that is the case. Look at the asset classes. S p down 3. 5 month to date treasuries down in price by 3 the yields are at multimonth highs right now. That you could draw your narrative as you like there, say it is because the Economic Data has been good, we are expecting a fiscal push after the election who knows what it is, but it is not going according to plan. Gold perked up here a little bit but also underperforming what you might expect it is all one asset class directionally right now. We can flip this over and look within the stock market where most of the damage has come. Mega cap growth, again, month to date, thats weighing on the overall market cap weighted indexes. The equal weighted russel 1,000. All large cap stocks, call weighted i dont know if you feel comfortable about that and think it is a rethink correction in mega cap Growth Stocks like the fangs. Or thinking about what is going to take it higher back towards the highs. Thats the debate. Mike, can we go back to the first chart. If we were to fail the next test on the key levels in the s p, would we expect a bigger fall after that doesnt look to be key support levels below it. There is not much below it. What comes in here a little bit is 3,100 it is not the 00 day average thats the next some there how many of these textbook obvious stare step moves would you have sometimes it will break through the widely watched level, spring back above it. That was the head shake. 3,100 levels are where most people are watching the next move it would generally come the we got there with questions of whether the bull market itself was compromised. We will have to see if that comes into play. Thank you mike. A lot of that rides on technolo Technology Apple one of the biggest left siders today the worst performing stock on dow right now plunging more than 6 on the back of earning of it is responsible for 3,700 points of the dows decline right now. Let bring in a couple of annis. You both have different ratings on the stock chris, you like apple. You rate it outperform are you a buyer despite this selloff and the uncertainty today . We are. We have been involved in apple for a little more than a year right now ahead of the a 2k3w wa ahead of the 5g wave certainly thats here right now. I think the concern on the quarter was the fact they declined to give guidance for the december quarter there was good reason for that half of the product line, two phones are not available for sale yet and there is covid uncertainty. Certainly for the phones that are for sale they seem like they are selling fairly well. Delivery times are up. And the other factor is the carriers are subsidizing these phones for the first time in a long while, which is something we didnt expect while over the last year or so there is some hesitation, we can we were playing this for 5g. 5g is here there are still factors that we think drive upside that keep us in the stock. Jeff, you have an underperform rating on apple, but a 115 price together, which is higher than we are right now. Are you not buying the 5g hype and the next super cycle just to clarify, we have an 80, just a little bit below. Chris and i have been on the same sides of various stocks, we differ on this one a little. I think the iphone 11 cycle was a decent one it was healthy the signs i am seeing indicate that the iphone 12 is not going to be that much bigger than where we ended up with the iphone 11. I am also a little bit skeptical of the strength of the operator promotions one of the things that verizon said is they dont expect it to alter their financials versus last year, which means they are probably not going to be spending ultimately much more than they did in the 11 cycle. Jeffrey, if in six the 12 months time the world is back to normal, will apple have a higher or lower multiple on top of its earnings thanes do it today . Im worried that it will be a little lower, wilfred. Exactly. I think the concern for me is that there is a lot of expectation built in to the 5g super cycle, and like i said i am not sure we are going to get that i believe that apple merits a higher multiple that is thant has gotten in the past i am happy to see 20 times historically they have been 15 items or below right now they are well above that and that makes me a little nervous. Chris, how are you thinking about the multiple multiples for all tech are tough right now. You certainly have to acknowledge that we are well ahead what have we have been in the past listen, thats the whole market right now. And you know, we have hesitated to make negative calls just solely based on valuation because, you know, for the past several months that would have just been dead wrong we are glad we stuck by it we are looking at stocks that have good earnings momentum, are numbers going to go higher than where the street is right now . How long is the cycle . Again, in. Aels case, i dont think this is it for the 5g cycle. 5g isnt rolled out around the world yet. Right now, really, china is the main market that has, you know, durable 5g you are going to get more of this in the u. S. As the year goes on. You are going to roll out worldwide really over the next two years. And you know, finally, as we look into the apple product lineup, based on the checks that we do. We expect a form factor change next year, which gives people you know another reason to kind of take a look at the lineup we dont think this is quite it for the 5g cycle here. Chris one of the arguments where they deserved the higher multiple was the shift to services and the stickiness of Services Revenue and that that warranted a higher multiple than being a Hardware Company that said, though, for the next couple of quarters are we not focused more than ever on iphone sales, on hardware sales yes, and yes. If you spoke to me a year ago, i was not a proponient of the Bull Services thesis. To go back to a year ago, those who were bullish on the stock focused on the services and that can power the stock. Our view is service is a great addon but cap work in the context of a kdeclining iphone phone has to be healthy in order for services to work now thats the case. Now iphone as jeff said since last year, iphone 11 was healthy we think 12 is looking healthy also, then you can add on some thing to it. Certainly, it has been a tail wind its certainly a point of debate of whether that deserves the multiple where the stock is right now. But, serges it is an ad on in the context of a healthy. Phone environment. Jeff, how do you factor in the growth in services and the multiple expansion from that continued growth with your somewhat bearish view here i think you can have both, right . If apple is traditionally at 15 times and there is plenty of room for multiple expansion from that, just perhaps not quite into the upper 20s, and i am very much with chris i think the iphone is the center of the Apple Ecosystem and thus, ultimately, the Services Business cant be divorced from apple, the iphone. So i im not a proponient of [ indiscernible that they use for valuation. Jeffrey and chris, great discussion thank you for joining us. Thanks for having news thank you both. Up next, losing energy oil on track for its second straight monthly drop with crude prices down 11 just this week we will discuss how the election could impact the energy space after the break. You are watching closing bell on cnbc. At calvert, we know responsible investing is hard. If youre concerned about the environment and climate change, how do you find companies that are driving the right outcomes . If you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities . For nearly 40 years, calvert has delivered competitive returns by investing in Companies Making a difference because we see value in doing good. Talk to your Financial Advisor about investing responsibly with calvert. Talk to your Financial Advisor about investing responsibly you can go your own way go your own way your wireless. Your rules. Only Xfinity Mobile lets you choose shared data, unlimited or a mix of each. And switch anytime so you only pay for the data you need. Switch and save up to 400 a year on your wireless bill. With the carrier rated 1 in customer satisfaction. Call, click, or visit your local xfinity store today. Welcome back its been a rough week for energy among the worst performing sectors this week. Its down nearly 7 . Wgi plunging by over 10 for the week following new concerns on how surging coronavirus cases could impact the commodity and objectionon mobile after reporting its Third Straight quarter of losses, chevron moving higher after posting a profit after forecasts for a loss lets bring in an analyst from Raymond James and and Stewart Glickman to what extent do you think this decline this week is due to coronavirus fears versus election fears how much of an impact do you go a joe biden presidency could have on the sector and on the commodi commodi commodity . The drop in oil price is 100 tied to the second or perhaps third wave of covid. Germany and france went back into lockdown. A lot of smaller countries, poland, austria, parts of the uk, parts of illinois doing the same thing this is bound to have a negative impact on demand there is no escaping it. The oil market will have to get pasted this really critical space of the pandemic, get past the wintertime before sustaining its recovery into the spring and summer of next year. The next 100, 120 days are going to be tough. Start to when you look at the options to invest in, the majors like exxon and chef ron have they priced any of this in the whole space is under pressure there are few places to hide the natural hedge, where you have upstream are suffering and traps downstream or chemicals doing better, thats not the case this time around. Covid pointed out that every Business Associated is doing poorly yes, the shares are under pressure we think there are better places to look than being in the integrated at this point. Back to the election for a moment, energy has become a critical issue in swing states like pennsylvania and ohio and the Trump Administration is campaigning on the fact that it is better for energy and that biden would shut down fracking and impose regulations you know, his messages have certainly been mixed on that front. We went back thank you melody myers for doing the work here and looked at Oil Production during the obama administration. Over two term. It rose 75 in this country. Under trumps administration, his only term, 23 higher. So does it really have anything to do with who is president . And would joe biden necessarily be bad given that track record it has practically nothing to do with who is president and everything to to with the global commodity cycle. The number of rigs drilling for oil right now in the United States is close to its lowest level since the days of rockefeller and standard oil 100 years ago. Thats an amazing statistic. Is that because trump is not sufficiently supportive of fossil fuels of course not. Its because we have a Global Pandemic that has caused the worst demand disruption in the oil market in important history. So on top of that, we have the fact that many oil and Gas Companies are trying to be more disciplined with capital, preserve their balance sheets. This started even before covid, years ago. You put those two things together, and there is simply not the same level of appetite to drill as there had been for example, in obamas first term by the way, biden has made it clear he is not aiming to ban fracking, you know, on a National Scale but even if he wanted to, that would be highly unlikely to stand up in court. So a bit of a moto point. Stewart, if we get through the election smatly next week and the market starts to focus again on High Expectations for a large stimulus package, whether it is in weeks or months, would that be enough to boost oil prices again and boost with it some of the oil majors or is that really linked because of the supply demand equation for the commodity itself i think it is really a supply and demand situation i think the conversation is going to turn to policy. If we ends up with a biden administration, i agree that i dont think that a ban in fracking is in the cards but you could see some levers being pulled with respect to Energy Tax Policy and with respect to the willingness to continue issuing permits to drill on federal land so their funds out there who have more exposure than others to federal land. Many of them do have in hand a couple of years worth of permits. It is probably not an immediate effect those are going to be the bigger drivers from a policy perspective. And of course what happens with supply and demand for crude is going to be a dominant factor in where we go from here with crude oil prices pafl, how much of it depends on investors appetite going into these stocks and esg and all the changes around the environment and toward cleaner energy and with Corporate America and the world moving in that direction, how much is just going to depend on how these companies pivot that way well, for, you know if we are looking out decades into the future, there is no question the decarbonization mega trend will continue indeed, it will probably accelerate and there are some thing on the policy level that you for example, for example, the european climate law, which is coming down the pike in about six weeks time, very big deal for energy you i think the main factor here is the Technological Progress in low Carbon Energy solutions. So everything from wind, solar, more advanced bifuel techniques, wood palettes, so forth. All of these will have already cratered demand for coal in the electricity mix in large parts of the world and eventually Global Oil Demand will peak as well. Now, to be clear, we do not anticipate that happening until perhaps the second half of the decade so this post Covid Recovery will have time to play out. But, yes, the pivot in the oil and gas industry away from fossil fuels towards low carbon will only accelerate over the next five to ten years oil stocks, the sector down 5 for the month thank you for joining us, pavel and stewart. Good to have you both here we are off the lows, down 354 now on the dow we are down more than 500 at the low point of the day still a broad based selloff. The s p is capping off pour than 2 decline for the week. Up ahead, the clean teeth trade is alive and well. And the parent of rubber maid is doing well the two bucking the trend in the consumer space. The biggest losers for the week boeing, american express, and visa the lockdown measures putting pressure on airlines and boeing. Much more straight ahead on closing bell. Before money, people traded goods. Tools, cattle, grain, even shells represented value. Then currency came along. They made it out of copper, gold, silver, wampum. Soon people decided to put all that value into a piece of paper, then proceeded to wave goodbye to value, printing unlimited amounts of money as they passed the buck to the future. Thats why its time for Digital Currency and your investment in the grayscale funds. Go digital. Go grayscale. Keeping your oysters busihas you swamped. You need to hire. I need indeed indeed you do. The moment you sponsor a job on indeed you get a shortlist of quality candidates from a resume data base claim your seventyfivedollar credit when you post your first job at indeed. Com promo just under 40 minutes to go in todays trade lets check in on some individual Market Movers with the dow down 352 points. Newell brands trading higher after reporting strong earnings. Seeing strength in food and Home Fragrance divisions. Higher by 4 1 3 last week we told but the moment of tooth, how people are spending a lot to keep their teeth clean. Shares of Colgate Palmolive hitting alltime highs on the back of an earnings beet citing up crease in demand for personal care products. It was png, and know colgate, not just invisalign. Incisive analysis moment of tooth wins the day happy to bring it back again like incisors now, did that work . Not quite. Nearly it was good i got it. Payments Company Square shares falling sharply today. Down more than 9 today following a wall street journal report it is looking to buy credit karmas tax preparation unit it is on pace for its worst week since april and worst month since march. The sale of karmas tax unit could have to do with answer trust concerns from the d. O. J. Intuit owns tusha tax, which could mean less competition in the on line tax filing space there is always worries about the value of this deal for square and squares track record on m a part of this weakness could be tied to darcys other company, twitter, down about 20 today. Analysts tell me that trouble at twitter is seen as distracting for the dual ceo paypal is also down about 5 today in the broader selling dan niles will join us to the us whether he is buying this dip. We will also have look at bonds. Yields moving higher across the board,. 86 on the tenyear as we stan. Well be right back. When i was in high school, this was the theater i came to quite often. The support weve had over the last few months has been amazing. I have a soft spot for local places. Its not just a work environment. Everyone here is family. Gonna go ahead and support him, get my hair cut, leave a big tip. If we focus on our local communities, we can find a way to get through this together. Thank you. If you are ready to open your heart and your home, check us out. Get out and about and support our local community. We thought for sure that we were done. And this town said not today. I got it all from you im always pushing through i know well make it to the finish line i know youre waiting on the other side im like you ondemand glucose monitoring. Because theyre always on. Another lifechanging technology from abbott. So you dont wait for life. You live it. 30 minutes left of trade time now for the coronavirus tracker. The virus is now spreading faster than ever in the u. S. , which reported a recordbreaking 90,000 cases on thursday, the equivalent of one per second thats according to the latest Johns Hopkins data 17 states reported new record high force week over week hospitalizations with wyoming, new mexico, and idaho seeing the largest percent increases. 1,047 new deaths were reported yesterday, which is the highest in more than a week. As you can see from the chart, still below the level seen last ving when we were averaging more than 2,000 per day more lockdowns being instituted across the u. S El Paso County will out shhher all nonessential Business Force two weeks in an evident to curb rising cases belgium became the latest country in europe to impose a lockdown closing down all nonessential businesses on monday. Hospitalization date is disturbing out of czechoslovakia as well. Time now for a cnbc news update. Heres what is happening at this hour. On its last day of early voting texas has surpassed its 2016 total. Texas is the second state to top its 2016 turnout after hawaii. Nationwide over 85 Million People have cast ballots this is roughly two thirds of the 2016 vet San Francisco was halting its reopening due to rising covid19 cases. Easing of restrictions scheduled for next tuesday will now be postponed. Major League Baseball owners have approved Steven Cohens purchase of the new york mets cowithin a net worth estimated above 14 billion will become the wealthiest owner in baseball and we now know what will replace preparations like these for the rose parade. Organizers say they are producing a twohour tv special with musical and marching band performances since its beginning in 1891, this will be only the fourth year without a rose parade the other cancellations, due to wartime. That is the news update this hour sara, ill send it back to you sue, thank you. Weve got just under 30 minutes to go before the close here is where we stand in the markets. The dow still down triple digits, down 417 a little more than 500point loss was the low on the day. We are down 2 on the s p 500. Every sector lower big tech is leading the way down the nasdaq is down 3 . When we come back, a top tech vefltor will tell us where he sees opportunity in the market outside of just the faang names right now. Closing bell will be right back first up is this exquisite bowl of french onion dip. Im going to start the bidding at 5. Thank you, sir. Looking for 6. 6 over there do i hear 7 . 7 in the front 7 going once. Going twice. Sold to the onion lover in the front row next up is lot number 17, a spinach and artichoke dip, beautifully set in a hollowedout loaf of sourdough bread. Dont get mad get e trade and get more than just trading investing. Banking. Guidance. Welcome back big tech dragging down market right now. Apple, facebook, am all down more than 5 today is this a signal to buy. Or should you be looking outside of faang instead lets bring in eric jackon of emj capital. A portfolio manager. Just to establish, you run a tech fund that invests mostly in names that are smaller than these big faang names. I wonder if anything you heard, any warnings or any of the reasons that these names are selling off are giving you paws around technology broader . Not really. Not really, sara great to be with you i would say that for me i am looking for names that can double or triple over the next two or three years typically, those are companies in the two to 50 billion market cap range. The faangs are phenomenal companies. The earnings they announced yesterday really across the board i think you would be really hardpressed to fine anything negative in them. If anything, the only thing that analysts seem to be complaining about are increasing operating costs. But of course those just go towards extending the moat that they already have against their other competitors. They are Great Companies i dont think they can double or triple in the next couple of years, so i try to focus on other areas of the market where i see also equal opportunities. One the places you focused which has been a real winner for you is zoom, which didnt take a few years for double or triple it happened very quickly it sold off pretty hard this week it is down more than 6 . Do you sell the like it . I do still like it. It is hard to complain when we came into this year with zoom at 70. I owned it since august of last year i owned it because it was a company that kept come up in conversations with folks i talked to in silicon valley. Each at 100, the ipo price, people were like it is to expensive. I thought it was going to be a dominant player in the Enterprise Video conferencing space, which obviously it has been the pandemic has made it broadened it even more, now it is at colleges and universities. It pulled back a bit most smaller and mid cap stocks have i think post election zoom and a bunch of the other tech names will be viable again. Do you get concerned that broadly tech names in general are overvalue because of 2020 and the way in which the market has rewarded those companies that do still have growingerings and that next year if everything goes back to normal and whenever that time is, that even if they are still growing, each if their revenues and their earnings are on a great trajectory they are all due a bit of a pullback and maybe thats what we are seeing today for the big cap name these names do have enormous pullbacks. You have to live with the volatility if you are investing in the space i am firmly in the opposite camp to those who satisfy it is a you believe about. I dont think it is a bubble obviously, wilf you are correct that the fed has ridden to the rescue this year and post march really flooded the market. That supported the valuation of these tech stocks. I dont think in the context of that fed support plus low interest rates, which i dont believe are going away any time soon i dont think the valuations are as stretched as some in the bubble camp keep banging the drum about so i there are periodic pullbacks. We had one in september. We had one obviously earlier this year. We have one seemingly every year you have to ride through it and continue to just invest in the quality companies. And these growth tech stocks are quality companies. Eric we have all heard of zoom give us a name that perhaps others might not have heard of that you are very positive on in the 340e789. I like hello fresh has been one of my favorites. It is not commonly talked about over here because it is a germ app listed stock most are more familiar with blue apron but in terms of quality of management and performance they are opposed. Hello fresh is dominant in the u. S. From a meal kit standpoint. It has been growing this year. It is going to continue to grow. Thats one that should be on investors radars if it is not already. That sounds like another pandemic winner, a delivery, stayathome kind of trends. It feels like thats where you are going, eric. Then it raises the question of what happens when we get a vaccine . I dont know how many times we have talked, you know, like on this show, about the topic of when is going to be the right time to jump out of the growth trade or the covid trade back into value stocks or banks or what have you . Ultimately, it is about Successful Companies it just so happens a lot of the covidproof Companies Many of which we already touched on and there are a number of others we can into, these are built to last companies these will we transformed our behavior if you looked at the amazon numbers last night we are not going back back to relying less on amazon once the pandemic sub sides and a vaccine is available. Our behaviors have changed in many ways. So many of the socalled covid stocks that have benefitted, i think their runs will continue in the years ahead. Eric, thanks so much for joining news thank. After the break, the final minutes of an ugly session and an ugly week on wall street. We will take you through the biggest moves when we go inside e market zone. We are down just over 2 on the s p 500. Hey, dad hey, son no dad, its a video call. You got to move the phone in front of you like. Like its a mirror, dad. You know . Alright, okay. Hows that . Is that how you hold a mirror . [ding] power e trade gives you an awardwinning mobile app with powerful, easytouse tools and interactive charts to give you an edge, 24 7 support when you need it the most plus 0 commissions for online u. S. Listed stocks. Dont get mad. Get e trade and start trading today. Welcome back we have just over 15 minutes left in the trading dame we are now in the closing bell market zone commercial free coverage of all the action going into the close mike santoli here to break down the crucial moments of the trading day and today keith bliss with us. Good afternoon to you keith. Stocks plunging. Major averages all on track for their worst week since march big tech hit hard today. Apple twitter, amazon all plunging alphabet the rare outperformer today. Mike, if we start with those four and the Different Directions they are all moving, could it be explained simply by valuation, multiples, closing and alphabet being the relatively cheap one of the group . To some degree, yes at least if you considered alphabet to have more earnings leverage down the road outside of amazon a lot of the faangs and mega caps are clustering in the mid 30s multiple fell range. There is profit still in them. They are going into other parts of the market, just not in call amounts. Amazon, apple facebook three docks down, they are one seventh of the s p 500 the equal weighted industrials in the s p are less down than 1 equal weighted consumer discretion terry is down less than 1 . It is ugly a sloppy tape. Bond yields are up and the offsets are not working as a lot of leveraged funds would have them modelled. That aside i think it all amounts to right now this little bit of a precipitous retest of the september lows and the levels we have been talking about. Reit, are you buying or selling any of these big faang names amid their sharp declines today . No, i am actually sitting on sidlines and waiting for the carnage the clear out of here. Underscoring michaels point you may recall when the faang names were pushing the stock market much higher and we were all scratching our heads over the valations. What michael said is very important. Those names are 1 7 of the s p 500. When they push them up we look at the multiples when they crack for whatever reason, multiple expansion looking at valuations, covid fears, Political Risk you name it when they crack they are going to crack the entire market precisely with a we are seeing here today to your question, to i am going to sit and wait for it to wash out. I think there is more to go in each of these names. I wouldnt be getting long a week before an election. I think the end of yooeks week we may start the dip back in. A couple of days ago i saw on twitter you were suggest we were oversold and there was Good Shopping to be done. What happened in the last 48 hours that changed your mind on that. I wouldnt say i am not. Showing in other areas of the market my comments were directly directed at the tech side right now, which is driving the overall market when tech names take the whole market down then you throw the baby out with the bath water and you see other nails look at what is happening with home depot, the other big dow names pushing it around. Apple is only a 108 stock inside of the dow. Given it is a price weighted index it is going to have some impact on where the dow goes but it is not the sole criminal, if you will, in todays market. If you look at again home depot, United Health care, some of the other games that are good quality names and well stabilized, those are the areas where you should be doing your shopping every dow stock is lower on the week lets check in on cruise stocks receipt now. Getting a pop around midday on news out of washington lets get to seemo mody for more. The cdc says its ban on cruiselines expires tomorrow allowing for a phased reopening that will include simulated voi ans sometime in november to test the cruiselines covid protocols. These are mock voyages open to volunteers and loyees designed to replicate real cruises to ensure before paid passengers get on board the cruises know how to covid test all crew, isolate sick pars injuries and get through other realtime scare knows. If health initials like what they will see the logical assumption that cruise operators will be able to set sail afterwards they are targeting a december 1st start day. You are looking for good reading, 40 pages from the cdc director on what exactly he is looking for, the framework he wants the cruiselines to operate under. Wi wilf this is sort of bizarre it is like upside down world we are reporting on 90,000 cases in the u. S. And regional lockdowns to protect Health Care Systems and this is the time where the cdc says it is okay to get back on cruise ships i think it is that reason that this report is so extensive and hily technical on the different scenarios they want the cruiselines to test before they allow passengers to get on board this december. But its a great point if anything, those 74 protocols that includes testing all crew and passengers, social distancing on board, the ability to transport sick pars injuries to an onshore hospital all of those scenarios will be tested thecs hope before cruise lines get back to sea this december because of the risk of covid cases rising. Seema thank you michael if we look at the week as a whole it is not specifically tech, nor cyclicals. It has been broad, to the tune of , 7 it has been more of a liquidation. We are somewhere in between right now. I dont believe there is a lot of conviction that the shutdown beneficiaries have a long runway of continuing the outperform there is concern in the tech about pull of demand as well as risk to the downside on the other hand it doesnt seem yet like the green light is illuminated for the true reopening trades because of the numbers going up friction back and forth. They havent necessarily in the moment given you reason to say that you have to panic out of the cyclical trades. Meantime, electric car maker fis ka having its first day of trade on the new york stock exchange. This is one ev spac ipos we have been expecting in the Fourth Quarter it did begin trading today so far not a bad opening for fsr. They are going to take a billion dollars out this ipo as proceeds why . They are going the use it to fund their first vehicle this is that vehicle it is the fisker ocean it is going to be built in austria, not expected to come to america until 2022 this morning on squawk on the street they have talked where they are going to go from here. We raised more than 1 billion. We are not like the other Startup Companies that needs to go out and do multiple rounds before they can get to Vehicle Production into looking at shares of nikola we are pointing this out because when the fisker ev spac was announce it was at the height of the frenzy of Nikola Nikola is trading below where it came into the market after its spac wohl see what happens after the next several quarters not only for fisker but for the other electric Vehicle Companies going to market that way. Phil thanks for that. Keith bliss whats your take on all of these names are they going to impact tesla which has the biggest impact on the broader indexes. That fends on tesla and how many boup dairies they can create inside of their Business Model. Certainly leer the dominant market meter elon musk does lots of thing one of the crazy things he does is he is able to get a lot of capital. It takes a lot of capital to build out a factory and get one car into production. When you talk approximate china and the European Union mandating evs across their fleets in the countries just in a short period of time there is going to be a lot of reasonable for a lot of ev companies they will have to compete on quality just like the internal come bust Car Companies do right now. Fisker and tells la and nikola can make a vehicle and get it on the market there is a lot of market for it. We will see a lot of competition in that mark in the next five to ten years. Is it a good sign, mike, for the broader market, at least for the bulls, that an ev startup with pop 14 in a down day, and a down week, in a time when a lot of people are saying the froth needed to come out and there was too many ipos and too many spacs and too many ev companies, does it say anything about the tolerance for that kind of thing . Yes and no. The other stuff is happening spaces trades as a group are down hard this month nikola is off its high i dont know that it is a good thing that you want to see the speculative impulse work for a day. Also not a bad thing just because everybody has gotten a lot of these on the books already. I think we are more in a mode of trying to cleanse that stuff out as opposed to welcoming i. The eerks po etf has had a hard correction but it has not unwound all the upside it has had. It is stilling the that you the market is seeking growth where it can independent confuse it. Its just not necessarily in the same places as it was in august. Lets hit under armour, that stock outperforming after reporting a beat on both the top and bottom lines for the third quarter. The company is also forecasting full year revenue to be doesnt by a high teen Percentage Rate but that was better than expected analysts were looking for a drop of i spoke earlier to under armo armours ceo asked him about the outlook for the expect and why he was providing guidance for the hello quarter. We believe if this current trajectory continues for our bran and with the consumer we are going to continue to do better we have prepared for this for a long time over the last three years. We have become a better company. We operate better. We are able to get the right stuff, the right place, the right time we are not slowing down in q 4 we are prepared and ready for holiday. We have the right product in the right place. We are feeling good about the momentum right now we are feeling good about also when we look around the corner into 21 that it will continue. Definitely a confident and upbeat message from risk and the entire company the stock was doing much better before the market cratered into the close here but its still going to be a showme story. It was a combination patrick said of the lockdown, the reopening starting to happen, people coming Facebook Stores and more on line ordering and some of the steps they have taken higher margins, better inventory levels, about innovations, being aggressive about going to market and the expectations around the Holiday Season a lot of analysts say it is a buy off of very cheap levels how does it look to you . Certainly depressed levels i wouldnt say cheap but it is now or never in terms of capitalizing on the trends happening out there. Less than a 6 billion market cap. We used to compare it to nike, which is 30 times larger after they have gone into Different Directions now you could say it is underestimated at this point and maybe they have more market share tune than the market is giving them credit for have see had you that goes. Pivoting back to the broader markets, keith bliss what are the key levels you have been keeping an eye on on the s p 500. We are at 3,257 as we speak. Echoing my earlier comments driven by a few names. Technology and health care are 41 of the s p 500 these days with their market cap rating the key level, we are overis hold on both the s p and the dow. My true tral opponent on the s p would take it back up to 3,400, a little bit above that. And the dow back into the 28 wsh 600 range, somewhere in that nature this was not a surprising pullback to me because we saw the vix get overbought two days ago. Remarkably, vo, wilf, the russel is not at the complete oversold level. Thats holding out relatively well i attribute that to Smaller Banks and regional banks in that index as well as nonbank Financial Institutions while they have sold off like the others they have not been hit as hard. Again we have got to get somebody who will take the bid here in the market and the s p 500. I am to the sure it is going to happen preelection but post election i would expect it to stabilize and move back up. 90 seconds, mike, what are the internals telling you . Negative but in the as bad. Really not much worsethan two to one declining to advancing volume new lows versus new highs on the nasdaq the new lows are building daybyday during this correction more than 100 it is not a blowout but it is skewing negative wear and tear on the internals there. Finally the vix. Keith was eggs inning we were higher a couple of days ago. Peaked at well above 40. It has come in at 38 in theory that could be a net positive when you kind of peak at a lower level on the vix when the s p 500 has actually made a subsequent low woll see how that plays out over the weekend. Under a minute left of trading. Lets look at the major averages climbing back here the dow only down 168 points right now. A nice little comeback, buying into the clez on a friday. The wrap on a very down week and down months for stocks apple still the biggest loser in the dow but seeing some green. Ibm has been a winner all day. American express went positive honeywell, cocacola buying of those types of names on the close as well the s p only down 1. 3 it was down 2 just a few moments ago. And. Kaing off a down day, week, and month, wilfred, but well off the lows of the session. And some interesting buying activity going on there around the close. Indeed, well off the lows of the session. Welcome back to the closing bell, everyone. Im wilfred frost with Sarah Huckabee sanders and mike santoli. The intraday chart tells it all. Red throughout the session but a nice little pop into the close it was led though more boy the value names, the cyclical names, the pop into the close the dow had much more of a pop than the s p s p finished down 1. 2 , had been down 2 . Tech names getting less of a bounce into the close than Others Energy a mg kaup, alpha one Capital Partners dan niles will join us on the tech selloff and explain if he is buying the dip we saw today keith bliss stays with us ask. Tiffany mcgee joins us now mike santoli to you first of all. Sum up for us what we saw this week should we have expected this type of action maybe not necessarily the level of pullback of equities, but the spike we saw in the vix for example, ahead of the election. Yeah. Was that sort of action expected some of this was certainly expected i think we have had to go through subsequent rounds of shaking out people who are waiting for something in particular that didnt happen or isnt going to happen yet such as the stimulus. If you really thought that was make or break, you kind of got disabused of that and people had to sell out of that. Now in terms of the election, thinking it is going to be hung up and going to be prolonged some folks are taking those bets back at this point that plays out in various different ways i do think we did have this adjustment to make from back three weeks ago when we made a new high in october and people were overbullish and thought every scenario the next three months was going to be up and away now we are basically squeezing all of that out of the market. Maybe we have largely done that by this point. Close to 10 off the highs another retest of the september lows all that stuff makes sense interestingly, if you go back to the summer and a lot of the history and the conventional wisdom says september and october in election an year sometimes gets dicey, chops around before you get a Fourth Quarter rally. Thats kind in retrospect maybe what we are seeing. Keith, trader perspective, do you make anything of that close, that sharp comeback of the markets in the final minutes of trade . S p down only 1. 2 it was down well into 2 just a few minutes before that. Should we read into anything that the thing you can read listen, one positive close like that does not make a full story. Yeah, absolutely if you are on the bull side of the market you are going to take that you dont want to see a sloppy market all day and get sloppy into the close and sell off yes, we will take that positively i find it interesting going into the weekend before the election day there were people coming in to bid this market in the last 30 seconds to michaels point, we touched the september low today and bounced off of that level almost right away tells me the algorithms are looking at that level and zoiding that was where they could come in and buy this one last oint point, what you were just talking about. I think the massive selloff was a little surprising to me this week, 6 what happened in my view is that the bull case, the tail winds that the bulls were looking for, a vaccination, reduction in covid cases, getting some stimulus, those all became head winds this week. And as michael was pointing out people had to start unwinding their positions and their trades on this both this the cash equities as well as the derivative side of the equation. That led to the 6 fall. We will take that close as a positive sign. The nasdaq didnt bounce much into the close, it is a buying opportunity for the tech stocks . Absolutely. We are bullish on tech we segment that market we call it tech, tech adjacent and tech enablers. Much of the conversation this year has been around these big tech names we want to be in those names we dont like when it is expensive and right now things are on sale. We are also looking for opportunities around those names where we can pick up some you know, pick up really good individual names at a really reasonable price like which ones yeah. So i just mentioned we have this kind of we organize tech into three cadgoers your straight tech names like of course the big five. And then we really look at we start to look at the dip in march, what was doing well, what was kind of uniquely positioned to do well people some people called them stayathome stocks of we called them kinds of like tech adjacent stocks. Names like purple, lulu, chipotle you dont think about tech when you think about those. But a company like lulu was they had a really robust app where their clients, their customers, were already trained to kind of order from their app. So that was they were really nicely positioned. Same thing with kmi boatly, which has done well. Also a Company Called purple which sells mattresses they spent a lot of money on digital years ago compared to at a certain point i think like in june they were up 3 compared to their competitor sleep number that was down 8 we are looking at companies have positions themselves those are a couple. Keith, you mentioned some of the previous tail winds became head winds this week if those change direction again and we get the market expecting stimulus, the election is passed, what will perform best some of the cyclical stocks or some of the big tech stocks that suffered so much today i bleebl i wouldnt touch tech right now because we are uncertain about it all the tech names are very oversold right now i believe if you get what would be the primary head wind that could become a tail wind that is within the control right now of the fiscal authorities or the monetary authorities that would be stimulus. I believe post election we will get a stimulus package regardless of who wins the white house or even if we dont know who the victor is wp a week of tuesday. As it is, that will give a boost to the market even if covid cases are still picking up or at least leveling off we have to look at hospitalizations and of course the death rate to really determine how much of an impact it is going to be on policy makers with regard to economic shutdowns. I think thats one head wind today, no stimulus, that will become a tail wind shortly that will pick up the market. To your point, big tech will rally off of that. Again, the entire market across many sectors with the possible exception of energy because thats just another fundamental dynamic story with supply and demand on oil but i think you will see broadly based moves across the entire marketplace at that point in time and thats where my Shopping List kinds of comes into play. Mike f a lot of this was about the rising covid cases and the hospitalizations and the Ripple Effect on Economic Growth why did treasury reelds rise today and much this week you would think they would do the opposite you would the fact they have not done the opposite and it is essentially at a fiveyear high, it tells you who knows what the cause is i dont think there is a straight narrative on that there has been a sense that somewhere over the horizon there is a lot of treasury supply coming both to fund the current deficit and because of fiscal Spending Plans down the road the Economic Data hasnt fallen apart yet, maybe thats keeping sellers in the treasury market to some degree what i think is most significant about it and what it might be doing in terms of fouling up some of the relationships in the market and essentially saying i am not getting my offset from bonds going up and stocks going down that had add an added source of portfolio stability no matter what happens maybe thats why we got an exacerbated move in just stocks today. I dont know that we have really a suitable or really satisfying explanation fortressries except you can expect them to be of catching up to what the stock market is doing. Because there has been a yawning gap between consumers staples and stocks going up and yields havent done much for weeks. They usually dont follow stocks all right. Maybe. The dollar was up for the week and for the month that has been acting as a safe haven that follows the decline in stocks. For sure. Lets get to bob bob possible has been taking a closer look at octobers winners and losers bob . Down 6 for the week. 3 for the month generally fairly ugly. October lived up to its reputation for volume till surprising winners and losers. Lets look at the winners right now. The outperformers, the bank storks up 12 . The yields moving to the upside. Solar stocks, all Energy Alt Energy did really well metal and mining up on hope for what was going on in china, maybe a reopening there. And semiconductors with one exception also did well there. A lot of m a there dow october winners, because of this we saw industrials and banks do pretty well in october. Thats not a typoon travelers. Up 11 Home Construction fell apart in the last couple of weeks perhaps concerned about Covid Concerns pharmaceuticals,lyture and entertainment down on Covid Concerns they fell apart more quickly in the second half of the month because of this, health care, generally lagging. Semiconductors intel down 15 on disappointing earnings comment heres something you are not going to see very often. A new high today, colgate. A new low today, intel, down 15 for the month. What does that tell you, guys, colgate, new high, intel new low. That people are taking care of their teeth and their oral hygiene bob, thank you say it again. Bob pisani. Tiffani, as we start out the new month is there anything you can glean from that picture of Sector Performance that bob just laid out, the winners and losers, and anything that you think will switch around once we get some certainty potentially around an election and maybe fiscal stimulus and the direction of this virus . Yeah. So, you know, there are so many themes floating around i think, you know, the major themes really really continue to be the virus and the stimulus because they are just the fact of the matter is there is people in our country that is just really really hurting right now. Outside of that, we just really continue to like these names i dont agree that tech is not to buy tech right now. Again, its like you know, we are looking at these at our firm we are looking at these opportunities and we do believe right now they are dips, especially in the week leading up to the election a couple more Days Companies like far fetched custom is a luxury Ecommerce Brand sorry, platform and also, on track we just believe that the world is changed right now and we are never going to go back to where we were before on track, telehealth, you know, these companies are going to continue to do well. And even after we get a vaccine, which i believe that we will, even after we get stimulus, which i believe that we will, those are opportunities this week right now that we believe are on sale. Tiffani, thank you. For naming some of the names for us tive ne mcgee and keith bliss. Up next on the show, tech investor dan niles weighs in on s. E wild week for tech stock whether he is adding to any of his positions. Keep it right here on closing bell. We are back in just 90 seconds oh. 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We see companies protecting the bottom line by putting people first. We see a bright future, still hungry for the ingenuity of those ready for the next challenge. Today, we are translating decades of experience into strategies for the road ahead. We are morgan stanley. Breaking news on two sectors that phil lebeau covers. What do you have worlds collide, sara. Paul jacobson has been named the new cfo of General Motors. If you are saying, isnt he with delta . He was now he is going to General Motors as the cfo there effective december 1st he leaves della after eight years as cfo he has been with the company 23 years. Back in april he initially said he is going to back in february he said that, then in april he rescinded that and stayed on through a rough time not only for delta but for all airlines now heading to the motor city. He is the new cfc of General Motors guys. Thats a pandemic trade, trading airlines for autos it is very on trend. Okay. Thats one way to look at it yes. Phil, thank you for that one. Major arches closing off session lows but posting their worst week since march tech nims like apple, facebook, and amazon all down more than 5 in todays session alphabet bucked the trend and gained 3. 8 . Joining us, dan niles. Always a pleasure. Good the see you what do you make of the scale of the selling this week, particularly today in some of the big cap tech names looks like dans picture is frozen we will fry and get that fired up again we in fact are going to take a very quick break and we will come back hopefully with dan niless picture up and running we will be back in a couple of minutes. Dont go anywhere. You can go your own way its time you make the rules. So join the 2 Million People who have switched to Xfinity Mobile. You can choose from the latest phones or bring your own device and choose the amount of data thats right for you to save even more. And youll get 5g at no extra cost. All on the most reliable network. So choose a data option thats right for you. Get 5g included and save up to 400 dollars a year on the network rated 1 in customer satisfaction. Its your wireless. Your rules. Only with Xfinity Mobile. Welcome back weve got dan niles back on the phone. Great to have you with us. I was just asking before we lost the connection what do you make of the scale of selling we have seen in big cap tech today and this week as a whole i mean, i think it makes sense. We put out a tweet if you go back and look on october 25th saying, you know, s. A. P. Cut estimates. If you look at their press release it said lockdowns have recently been reintroduced in some regions and demand has been more muted than expected back and then the s p was up 7 year to day. Obviously, covid cases were ramping and the future stimulus expectations held things together expectations got too high. As that tweet would imply. Our believe was that stocks would sell out we have been selling off all week we have 15 of funds in cash with a fair amount of shorts and today when the market got beat up we started covering some of those shorts. Thats how we felt going into this valuations at the ends of the day, there is absolutely no support. They are incredibly high no matter how you look at it and discounted a lot of really good things in the future. So what about, of the big cap tech stocks are any of them atransactive to buy on this pullback amazon, or facebook, which was up last night before the Earnings Call . Thats a great question the way we are looking at sit a very big picture if you step back what do you know for sure . The covid infections are ramping. Then you step back and say out of the tech names who will benefit from that . As you brought up, amazon will obviously benefit from that if we do a lot more of our Holiday Shopping on line germany is shutting down france is shutting down. We will see where the u. S. Is in a month. They are going to benefit. We also like the big Video Game Companies because, again, unfortunately, we wont be going out to movie theaters or out the eat or taking vacations. But if my two kids were home from college or doing college on line are any indication you are going to be playing more video games. And you have two brandnew consoles coming. Thats where we are looking in terms of exposure. And then in 5g, you know, i am not convinced thats going to be the big upgrade cycle everybody thinks it is but you have got some idiosyncratic plays in that between qualcomm, which is supplying chips to apple for the first time this year sorry, not the first time, but the first time in a few years. And then you have got alumentum supplying two chips into the apple iphone and they should benefit no matter how well 5g does. Google and facebook are advertising related. We some sold material earlier this week. We sold more today thats where we would be concerned about you have a ramp up in covid infections, to kind of give you the thought process. Dan, i didnt hear you mention apples stock specifically and i was really cure dwroious e your take on it after the reporting and the lack of guidance last night. Up on the year but down 6 this month. Is it a buy or a sell . Still a sell. There is two ways to look at apple. You can look at it and say well whats the Revenue Growth . For this calendar year you are expect being 6 Revenue Growth for apple. If you look at all the other big tech names, microsoft, people expect 2 growth google, 9 google, 3 facebook, 24 , facebook 16 . You can buy microsoft, google and facebook at a lower multiple than you can apple and they are going faster thats been the same for the last five years. Apple has done a great job of buying back shares, increasing their dividend, their multiple doubled over time, more than that and that has helped the stock. Sort of a do or die time you have been hearing about a super cycle the last two years this is now the third year better happen. They are being helped by work from home and people buying i am getting a new computer today for my kid, one of them broke down apple not a good value for the growth you are getting even though you do like the 5g trade in other ways through the chips and sly suppliers . You are not buying it for apple, the whole super cycle bullish case think about it this way apples units can be down year over year. Wouldnt matter for call come. They did so many chips into apple last year. For them, it is all up side. For lamentum, they have got two chips in the iphone. Not one. They have more potential and you can buy them at lower multiples. 15 and 27 times. Erickson for 5g, they are putting in the infrastructure. And they are doing better than nokia is for us, it is risk versus reward thats what everybody keeps forgetting what would you buy well, what are you paying for what would you buy thats the question because now we are in a tricky period of time i think we will get a stimulus package it will help everything like it has all year we will get a vaccine at some point i think late they are year i think that will be good, too at some point what you are paying for a stock matters to its underlying growth rate thats where you get the best rewards on a riskadjusted basis. Feels like that came into sharp focus for investors this week dan, thank you always good to get your picks. Dan niles, alpha one partners. Lets go to mike santoli now. Taking a look at person savings now that the stimulus effects have been wearing off. What is the data showing. Today the personal spending and income numbers were actually pretty good. It is a little bit lagging obviously and wasnt blockbuster thbs but better than expected. The personal savings rate comes out of that data series. Of course this is just whats left over not spend out of disposable personal income this was the huge spikes when you got the stimulus checks and people panicking amid the lockdown there is still a little bit of reserve of caution out there among consumers. Look at this measure of the cash cushion that has built up to some degree. One way it can be measured is there the checkable deposits easily available cash that people accumulated in Bank Accounts a. 1. 3 trillion increase we have seen in the last several months. This is to say in gragg rate there is a spending cushion. It is not across everybody people who are unemployed they are not in a strong spending position when you will be at the Macro Economy this is one of the reasons the consumption data havent fallen off. After the break, restaurant stocks struggling with this weeks trade chipotle and mcdonalds falling sharply amid the broader sell off. We will discuss the challenges for the sector with the ceo of panera back in a couple of minutes. Welcome back to closing bell. Restaurant stocks getting hid hard this week amid the market selloff. Names like mcdonalds down 7 . Chipotle down more than 10 on the week it had been a big winner joining us now to talk about the state of the industry and the consumer is panera bradys ceo. I want to talk about pizza in just a moment and some of your new initiatives and the Climate Friendly menu. In general what are you seeing from consumers out there right now as we face this second wave of rising coronavirus case good to see you, sara panera is actually emerging strongly through the pandemic because we have been completely focused on what we have control over i think that focusing on servicing customers through our offpremises channels, leveraging ecommerce and rapidly we have seen a strong recovery on our brand and a stronger Business Model emerging from the pandemic. How much of the business is actually happening in the restaurant versus on line and pickup and all the other adjust its that you just laid out and have had to make given that people are staying home more thats right. I think what is clearly playing off is the off premises channel is seeing dramatic growth. To give you a sense, our delivery is growing by over 100 drive throughs are growing over 60, 07 70 pickup has strong growth the off premises channels are growing strongly and compensating for the in person dining on premises prepamd we were 60 40, and now it is predominantly off premises convenience for our customers as we are moving in that direction. Also i think like you mentioned ecommerce close to 60 of our sales is coming from ecommerce i think brands that are able to leverage their ecommerce strength and pivot sharply on providing convenience and off premises are going to see a smart recovery. Everybody is eating pizza, whether it is frozen pizza they are buy trg the grocery or dominos why are you getting obviously it is on trend why are you getting into it now when so many of your other competitors have been there so long and have such a lead like dominos, papa johns pizza hut and others. We are working hard to get our business track on track, convenience, ecommerce and innovation, meaningful innovation cool foods or coffee subscription programs or the flat bread pizza launch. We are excited about this because it is a launch of a new food category at panera, one we havent had before i think it is a bulls eye innovation in terms of what the customers are looking for at this time. The customers are looking for a warm, shareable athome meal solution for their families. And i think the flat bread pizza fits perfectly for that. We are doing it in a uniquely panera way as you can expect we are leveraging the credibility of our breads. We have unique ingredients they are all clean. They are fresh we have double blend cheese, bold flavors in our sauces and it is stone baked. Think of this aspy pizzas customers love and done in a you peek panera way. Thats why we are so excited pizza is confident food for me i can relate to that i wanted to ask you about dunkin, nearing a deal to go private. You of course went private are owned by j. A. B is this whole sector going to go private . If so, why why are these restaurants, these fast casual chains so susceptible to not being public . Is it just a hard model to do . These are tremendous brands that have a huge runway for growth and enterprise Value Creation by doing the right thing. I think this to me just demonstrates the commitment and opportunity that lies behind these brands for continued growth in the future so i think it is an indication of the strength of the brand and the sector, be it us or be it anybody else i think just on pizza i wanted to highlight a fun fact. During the pandemic interestingly, the customers the categories that are kind of bucking the trend are like you said, food that represent nostalgia and comfort food so, you know, burgers or pizzas and so forth and i think, therefore, we feel that we are, you know, always following where the consume remembers going, and then serving them in a unique fashion different than anybody else therefore the excitement. Thank you for coming on to talk about it, always good to check in with you. Good see you sara, thank you. Up next, esg investing how the coronavirus may prove to be a big driver and could lead to Crucial Solutions closing bell back in a couple. , how do you find companies that are driving the right outcomes . If you care about economic equality and social justice, which firms are addressing it in their workplaces and their communities . For nearly 40 years, calvert has delivered competitive returns by investing in Companies Making a difference because we see value in doing good. Talk to your Financial Advisor about investing responsibly with calvert. But before we sign i gotta ask. Sure, anything. We searched you online and maybe you can explain this . I cant believe that garbage is still coming in. That is so false frustrated with your Online Search results . Call reputation defender today to join tens of thousands whove improved their online reputation. Get your free reputation report card at reputationdefender. Com or call 18778668555. I got it all from you im always pushing through i know well make it to the finish line i know youre waiting on the other side im like you ondemand glucose monitoring. Because theyre always on. Another lifechanging technology from abbott. So you dont wait for life. You live it. Time now for krbds news update with sue herera. Hello, everybody. Heres what is happening at this hour the death toll has risen to 19 from the severe earthquake that struck turkey and greece this morning. At least 17 were killed around turkeys Third Largest city. In greece, two teenagers died when a wall collapsed on them. The u. S. Now has confirmed more than 9 million coronavirus cases. Infections are on the rise in 47 states, with the heaviest outbreaks in the midwest a federal judge has ordered the u. S. Postal service to adopt extraordinary measures at some locations to ensure ballots are delivered on time. The university of florida estimates there are 35 million mailin ballots that have not been returned. And love it or hate it, mcdonalds, mcrib sandwich is coming back on december 2rd. It will be the first time the mcrib has been available across the country since 2012 it went viral. Thats the news update this hour, guy, i will send it become to you have a great weekend. A food deal announced nestle buying freshly for 175 billion. What that acquisition means for the food giant the chairman and ceo of nestle u. S. A. Thats coming up my dvt blood clot. Stayed on my mind. 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Tell your doctor about all planned medical or dental procedures. Whats around the corner could be your moment. Ask your doctor about eliquis. As the world grapples to contain the coronavirus pandemic it has shaken some peoples believes and caused people to question capitalism. It is also a chance to bring change for investors not not only consider the risk reward of investments but the risk reward of Impact Investing. Joining us now sir ronald cohen. His new book impact reshapingcal capitalism and driving real change is out now. Thank you for joining us good to see you. Good see you, wilfred huge flows of money have gone into Impact Investing and esg investing in recent years. How much more of that is to come has it made a difference and has it been leading companies to change their behavior . The era of just making money and not bothering with all around you is over if we look at the data of 1,800 companies which put on its wets, measuring their environmental damage, we can already see a correlation between companies that deliver more damage and work less. Impactors become price Sensitive Information now. And it is just going to change the world now. What would you say to people who criticize the ideaer esg as its own asset class, that suggest that the g, the governance is essentially investing in companies that abide by the law for example, ie this is something all investors start to think about as opposed to it being an asset class in its own right. I think the original thinking of this being an asset class is behind us now, wilfred we see impact equity if aing every asset class, public securities, bonds, private equity, venture capital, infrastructure, every sector is beginning to focus on optimizin risk and impact and impact transparenty is on the way for companies. Welcome back already see on the data that you can measure the impact a company has through its employment, threw its operations and through it is product stho do you think this is already priced into Certain Companies . We have been talking about the likes of exxon and chevron who reported earlier today maybe they dont have very Good Environmental records compared to some other companies but they are incredibly cheap as well how should investors think about that balance i think we are in a time when Renewable Energy companies are expensive. Investors realized the they gotive impact of these Companies Exxon delivers 39 billion worth of environmental damage a year from its operations alone and so investors have become aware this is a risk for the future it is a risk in terms of government regulation, potential taxation, talent leaving them, and customers leaving them and so investors are running away from them. Sir arnold, always a pleasure to catch up. Thank you for joining us. Pleasure to be with you. His new book impact qug out n. O. W. Up next on the show a big deal in the food space we are going to talk to the chairman and ceo of nestle u. S. A. About his auiticqsion this afternoon of Meal Kit Company freshly. Closing bell will be right back nestle u. S. A. Getting into the Meal Delivery business buying freshly for up to 1. 5 billion. Joining us now in a first on cnbc interview on the deal, nest lee u. S. A. Ceo Steve Presley why now to be getting into the freshly Meal Delivery business the time to get in was two years ago when we made a minority interest in the company. As consumers continue the evolve in how and where they shop and how they meet their food choices we thought freshly was an Interesting Company that was a food tech startup, fascinating, innovative and as we invested a couple of years ago and learned more and more about the company and the acceleration of ecommerce through the pandemic certainly triggered the desire to complete the deal now. I guess steve there are Many Companies out there like this now. We have a graphic in fact of some of them do you think there needs to be consolidation . Do you think some of them will go bankrupt in the years ahead if they dont have backing from a big company like you for us, i think freshly is clearly the leader in this prepared meal case and we think was the right target for nestle. For us, it will be a high growth segment. I think if you look at most of the research it will be a 15 billion cat goerm i think there is plenty of room for people in there. We think we have the best brand in the space with freshly and we think there is a run peaway of growth for us to drive this business forward hopefully, we end up expanding that leadership position it is a question, though, about the vinlt of these businesses we saw what happened to blue apron once it went public. How do you tell which ones are going to come out on top and which wont . Is this a profitable model i think freshly is a unique business versus some of the others ones. It is not a meal kit it is a different. It is not a meal kit it is a prepared meal. This can be high growth. I think each of those businesses have different and distinct issues, but we feel good about this business. Do you feel we could be at a peak eat at home moment because of covid and that in 12 months people will be going out again clearly the pandemic has had an impact to eating at home, but i dont think it will recover in 12 months. As consumers have moved to more brands across all of our portfolio, i think we have engaged new households and the families already in our brand, we have increased frequency. We have looked at quality and made it better for consumers i think this trend will stick. It will not turn around in six months or even immediately when there is a vaccine or Better Therapeutics available it has certainly accelerated, but that trend will continue i wanted to ask you about covid, steve, as the Worlds Largest Food Producer and what you have seeing here, as cases climb, hospitalizations climb, are we in for a second wave of a stockup in terms of grocery . Is that already happening and are we going to have food on the shelves fully . Clearly we all see the cases going up dramatically across the country. For us, the demand in the market has stayed for most of us. For most categories for the entire pandemic. We dont see massive acceleration, maybe a few cases, but they are really seasonal categories i think what we see is this sustained demand it has stayed consistent throughout this ramp up of the cases. Steve, thanks for joining us. Thanks for having me. Up next, a swing state road trip ad htisullivan has been on the roitng some of the key counties for the white house we are just a few days away from the 2020 election all week cnbcs Brian Sullivan has been on the road driving through some of the key battleground states. Today he is in rochester, minnesota where President Trump is set to hold a rally what can you tell me somebody spent a lot of money on a plane moments ago a plane flew over saying super spreader. Trump is in, masks up. This is his third state visit today. He was earlier in michigan, wisconsin and now coming here. I guess we got it right on the collection calculus. A lot of people think of minnesota as a lead going into the election she won by 1 1 2 . Biden is in st. Paul both candidates in the state a lot of voting here a federal Appeals Court overruled the desire to change the voting laws to suggest you could have mailin ballots a couple days after election that was overturned. So any mailin ballots must be s submitted and received by 8 00 p. M. Election day. So both candidates here making their case why they should go for them donald trump thinks they may go for him. Minnesota has a Strong Economy they have a higher than average income as well, but it has also been hit hard by Covid Health Care is a huge part of the American Economy we have the mayo clinic behind us, about 24 of the usgdp and of course there is the social and Racial Justice after the killing of george floyd in may. The Appeals Court invalidated a proposed rule change a lot of drama around minnesota. A lot of people dont think of minnesota as a battleground per se, but if joe biden is coming in, he wants to shore up the lead they have in the polls. We will be watching it. Brian sullivan, thank you. Brian sullivan with his road trip across Battle Ground states as we wrap up the hour, we just capped the worst week for stocks since march. Wrapped up october with a loss what will you be watching into next weeks election, of course, but beyond that . Mike is down i think. Mike doesnt have his ear piece in mike is already planning his big Birthday Celebration over the weekend i think. I was looking to avoid the entire topic mike, you didnt hear the question but what can we expect going into next week crazy selloff this week monday what would typically happen after that . We are in this mode of deciding whether we saw enough pressure on the markets, if we got oversold enough, enough position flush you saw some signs that things were rounding in that direction. I would expect if there is a rally into monday nights position, it will be sold. And and it could be buy. I dont know if this was a Double Bottom in the market we g got. We are pointing out the end of the month, s p down about 5 this month, and 1. 2 today have a good weekend and happy birthday to mike its monday to all of his fans thanks for watching fast money starts now. Happy birthday. Im melissa lee and this is fast money. Tonight on fast, trouble with the charts why it is said there is more pain ahead following this down week on wall street. And tonights big number, down 12 million and later, why this could give new energy to one part of the market another major selloff o