Well have rob sands join us to discuss the outlook for the beer business, in which theres a lot of news in the beer business lately. Yes, there is. Meantime, constellation may be hitting new highs, but gopro sinking to an alltime low. One bull says this makes it a cantmiss buying opportunity right now. Thats coming up. Lets get to the markets for this wednesday. Dominic choo is covering all the action. And jackie will be checking in at the nymex. Dom, another volatile day here. The dow up 170plus points in one point. A lot of the themes that have been happening. You mentioned whats happening with energy and whatnot. We were just taking a look here. Up by about 8 , 9 . You can see this after the company yesterday slashed its board from 16 members down to nine, but then increased it by two to accommodate carl icahns board nominees. Oil, gas, copper, materials, energy. That big slide taking its toll. Earlier this morning, pure storage went public. Priced at 16 a share. They raised about 425 million. You can see its been drifting lower. This is important because many view this as an indicator, a barometer of what demand could be like the next coming three or four months. There could be some effects there. A Big Tv Company in the caribbean to pull its ipo yesterday. A number of themes developing here. Pure storage, the biggest Venture Capital backed tech company, so could be a big sentiment gauge. Thank you, dom. Crude oil now at an impasse. What happened . We got all the way up to a session high today of 49. 71 and then crude oil got slammed down. The catalyst was the eia inventory report, but weve seen a lot of volatility. If you get back to the discussion of whats moving what, is crude moving the equity market . Is the equity market moving crude . Either way, both remain equally volatile at this point. A lot of bears on wall street continue to say that crude is going to remain lower longer. Even if it does pop back up over that 50 level and hold over these hundredday and 200day moving averages, crude is still 50. If thats whats slaying equity markets, traders really need to think twice about that. Having said that, were wondering if that was just a false breakout that we saw the last few days, because the fundamentals still dont really matchup. When you get weekly production numbers that actually show were moving back higher, you know the math doesnt make sense. Having said that, you know, its a wild ride. The wild ride continues, and where we go from here is anybodys guess, guys. Indeed. Thanks. Lets talk about all of this in our closing bell exchange. We welcome mark welch, Rick Santelli checking in from cubby land in chicago. Well talk about that a little later, too, rick. So, steve, which is the tail and which is the dog . Oil and equities. Whos following whom . I would assume its been a week since anyone has murmured the name glencore. It allowed a lot of the commodity space to rally in the absence of the major catalyst, which has been china to the downside. So i would say that oil is definitely wagging the market. China comes back online tomorrow. Lets just see what the markets do. China might play catchup. China might be up. This market probably is still a cell. Its a little squeamish. Were at the upper end of that trading range. If you have the luxury of staying long, then you can stay longer time horizon. I dont need to stay long. I can be nimble. I have the luxury of being nimble. Id rather sell these pops. Sell these rallies. I think that dash for trash is probably coming to a close. I forgot that china had been closed a week for that holiday. Thats an important thing to watch. It moved the u. S. Market. When i look at the yeartodate chart, that horrific selloff in august, and now in this last week, weve regained a huge percentage of that decline. So what is it . Do we regain it or is this a false rally . I think the status report accounted for the down move. Its the oil thats wagging the equities tail right now. I think that oil will go higher. The market will like that. Youre going to see that priced into the market. I think its really important over the next few days. Youre one of those longterm investors that has that luxury. Do you want to buy energy here . Do you want to buy these beaten down sectors . Do you see value if youre looking to buy longterm . I think of the biotechs as well. They tried to rally earlier today. I think its the right sector to be in right now. I like the materials, and i like other sectors such as Health Care Technology financials. So yes. Play the bounce. If youre a shortterm tactical investor, do what steve does. You can be nimble and move in and out. If youre longterm, i would recommend to my clients and the audience and our investors out there, take a position in oil right now. I think we can move up from here. Oil stocks or the commodity . Pardon me . Oil stocks or the commodity . Stocks are the commodity. In the commodity and stocks. In the sector. In the sector itself. And theres some good names obviously in the energy sector. Rick santelli, are you thinking about Interest Rates or baseball . You know, im thinking about big jake arrieta trying to go for a 23rd win, thats what im thinking about. But listen, cant be overconfident. We have a great tradition of pulling billy goats out of closets. But when it comes to the markets. When it comes to the markets, i love this conversation. Because we think about china by the way, what free market capitalist society, whatever closed their markets for a week. If theres any doubt, i would think thats what we would consider. Globalization has made some strange bedfellows. If youre an unskilled worker, pretty much anywhere around the globe, your life is not going to be where it was. It makes perfect sense that all these different policies have inflated prices like equity. I get it. But it doesnt mean that we have to see a big construction in equities as normalization occurs, if it ever occurs. Because one of the positives for globalization, and think real estate in the u. S. , is that now you have an entire globe of capital that can move quickly to whatever offers opportunity. And no matter how you slice the negatives of u. S. Society, from a global perspective, our stock market still host significant advantages, even if its a little rich. Have you contemplated weve got more and more people saying get used to a tenyear yield around 2 for a long time . Maybe years. I mean, what are you going to do . What are you going to talk about . Well, listen. What well talk about is all the swings it has. It shouldnt have. Because weve had so many thumbs on the scale that we would need Sherlock Holmes to have a magnifying glass. But having said that, yes, i see the global glide path in a much more diminished slope. I think the treasury market has been absolutely clear the last several years. Before we go, hes made the point that october traditionally is the month of bottoms in the market. Are you looking beyond that for weakness in this market . I think its fair. I think we have that selloff. I think we have that ramp in november and december to year end. Buybacks have been a huge part of this upswing. You have companies that disappear from their buybacks in october. So i can see the market maybe selling off to those recent lows and then rallying back in november and december. Bigger scheme of things, i am looking for a bigger selloff, but doesnt negate what i just said that could happen into year end as well. Understood. Before we go so, rick, we yankee fans have to give it to the astros. Congratulations. They shut the bombers down last night. You guys no offense to pittsburgh, but i think chicago is going to be Americas Team tonight in that wild card game. What do you think . Houston was really hungry last night. That was evident. I thought the yankees looked flat. This young chicago team certainly does make for interesting viewing. Yeah, just dont hit it to the foul line the left side there, into the stands. Ive heard that from a reliable source. Whatever happened to him . Thank you, guys. See you later. 50 minutes left in the trading. Were you with me on that . I pretended to. My husband will explain it later. Volatility reigns again today. So right now, the dow is up 64 points. The s p up nine. The nasdaq up 27, but anything can change here. Coming up next, rob sands going to speak on the takeover battle brewing. Get it . Between anheuserbusch and s. A. D. Miller. Alltime highs on a big earnings beat. What are you going to call that company if it merges . I think the current name is way too long as it is. I agree. Plus, john fort and amazons plan for the cloud. Find out if it is a game changer. If thats whats in the works. Thats coming up. People with really long names. Enough with the hyphens already. Well be back in a moment. You pay your Car Insurance premium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . If you have Liberty Mutual deductible fund™, you could pay no deductible at all. Sign up to immediately lower your deductible by 100. And keep lowering it 100 annually, until its gone. Then continue to earn that 100 every year. Theres no limit to how much you can earn and this savings applies to every vehicle on your policy. Call to learn more. Switch to Liberty Mutual and you could save up to 509. Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. Some neighbors are Energy Saving superstars. How do you become a superstar . With pg es free Online Home Energy checkup. In just under 5 minutes you can see how you use energy and get quick and easy tips on how to keep your monthly bill down and your Energy Savings up. Dont let your neighbor enjoy all the savings. Take the Free Home Energy checkup. Honey, we need a new refrigerator. Visit pge. Com checkup and get started today. Welcome back. Today has been something of a rally day in that sector. The biotech that we often quote is up one and a half percent today. Look at some of the standouts. Youve got to really White Knuckle that. It is epitomized by the biosector. So far, it is a no go on a budweiser miller merger. Anheuserbusch, they own budweiser. They rejected anheusers bid. Seema modi joins us now. Thats right. They hoped the third time would be the charm, but sab miller turned down the bid. The refusal of the offer opens the door to a week of wrangling before next wednesdays deadline for a formal bid set by the uk takeover panel. They hold a stake of 27 , said it would support a deal at our above inbevs proposed price. Bevco is rejecting the proposal. The combined entity would make a third of the worlds beer. The deadline extension can be granted if sab miller asks for it. Keep in mind, ever since rumors started swirling of a deal coming together in mid september, shares of sab miller have been rising, up some 22 . The deal seems to have gone flat. Theyre giving it the Old College Try several times. Thank you, seema. Elsewhere in the beer and wine world, Constellation Brands hitting a new alltime high. We are joined by rob sands. We want to get to your earnings, but first i have to ask you about this potential mega mergener the area that would create this incredible behemoth in the beer sector. Youd have some major competition coming your way, wouldnt you . Well, in actuality, it probably wouldnt have much of an effect on us because this is really about different parts of the world in north america. The miller corpss part of that business will remain largely independent and become part of another entity. It will continue to run essentially the same way in the u. S. Sab miller playing hard to get . They want more money . Do you think they really dont want to be bought . Your guess is probably as good as mine. Youve been inquisitive. Empowering your earnings the next several months. Are there any areas that would be tantalizing to you if you had to jettison some proposals for a merger of some kind . I dont think so. Because as i said, you know, in our major market for beer, which is really the United States, you know, theres anheuserbusch, and theres miller corps, and those two cant combine for antitrust reasons. So, again, i dont see much there thats interesting to us. How much longer can this juggernaut go for you guys, do you think . Well, first of all, its being fueled by a number of things. Demographics. The growth of the hispanic population is definitely one of the things. The hispanic population is slated and to continue to grow. I would say that the conditions that have driven this kind of growth in our beer business historically are going to remain intact for the foreseeable future. We also have some brands behind those which are fueling our growth right now. We have additional brands like negro modello and pacifico and brands that we havent even introduced yet that we can follow on in terms of continuing to drive the business for the future. We see a pretty steep growth pattern for quite a while for our company. Why are wine and spirits so slow in their growth relative to corona . Whats up with that . Yeah, so thats volume. If you look at the wine and spirits segment, its actually in quite strong growth at the moment. Our spirits business in particular has been growing more like high single digits. And our wine business is accelerating in terms of growth. So, you know, both very strong categories in terms of growth. Are they growing at the same rate as our mexican imported beer business . No. But i would say nothing is growing at that rate. Thats really a phenomenon. You know, with your sales footprint, let me finish by asking you, you know, the imf is out again raising the possibility of a global recession of some kind. What kind of growth do you see around the world where you do sales . Are you seeing a softening in some areas of the world . No. Not in our business. Were primarily a north American Company when it comes to wine, beer, and spirits. I think that the u. S. Economy is fairly strong, relative to the rest of the world. So were sort of one of those fortunate companies that are north american centric. Were not in markets that are going into recession. Now, that said, we do have a Canadian Business, but the Canadian Business of ours is extremely strong at the moment. Even given the canadian economy being somewhat weak at the moment. Its just a lovely chart. Outperformed the rest of the market, thats for sure. Thanks, rob. Weve got about 37 minutes left if the trading session with the dow up 71. We were up 170. We were down 20 or Something Like that. Its been about a 200point swing for the dow today. Coming up, the future of the media influx . New developments at a host of companies from viacom to lionsgate. And jay leno is back in the drivers seat. Watch the season premiere of jay lenos garage. Thats tonight here on cnbc. It airs at 10 00 p. M. Both eastern and pacific time. Very excited about that. Its going to be big, as they say, right here on cnbc. Stay tuned. Welcome back. The owner of fastfood chains like kfc and pizza hut posted disappointing earnings that youve heard about here on closing bell yesterday. Jack dorsey has gotten a vote of confidence from abroad. The saudi billionaire has boosted his stake in twitter to more than 5 . They are now the second largest investor in twitter with a stake worth more than a billion dollars. Amazon aiming high. Amazon is trying to accelerate big business and big governments move to the cloud in a couple of ways that theyre doing that. The first has to do with basically sending aud ining a b business that sucks the data out of the old system. Put it on the truck, send it to the cloud. Heres what amazons chief of cloud told me about it in an interview. Take a listen. If you look at our business, we have over a million active customers who are using aws. Probably the Technology Area thats been slowest to adapt to the cloud, still steep a little bit in the old world is the database space. What that means is theyre paying way too much and theyre being locked into these proprietary old database providers. The biggest . Its rare that i meet an enterprise that isnt looking to flee from thaeir current databae provider. I dont think they will. The second piece of what amazon are trying to do here is around analytics. A new product is going to allow businesses once their data is in amazons cloud to do more with it. To visualize things. To product whats going to happen next. Hey, amazons goal is for all of big business and government to run all of their systems on their cloud. Theyre taking another step in that direction, guys. Back to you. I always thought of it as a warehousing business for information or data or whatever. But you make it sound like theyre trying to suddenly take over the Enterprise Computing space as well . Exactly. Theyre much bigger than where they started out, saying hey, its storage, its a little bit of compute. Now theyre saying hey, we actually have this analytics product, this application that were offering that runs on top of that. Pushing harder into it now. That makes a lot more sense. I was going to say i couldnt understand why they were so hot for this business. The margins were this big and getting smaller. The margins overall, yeah. The margins overall are actually pretty big. For amazon, for sure. People were surprised to see 20 plus operating on this business. You can believe once they start layering applications on top of that, they have the chip. Hes an ambitious type, isnt he . Ive heard. Yes. Time now for a cnbc news update with sue herera. Heres whats happening at this hour. President obama welcoming german president joaquin gout to the white house. The two president s discussing a variety of subjects including the syrian refugee crisis. The coast guard has told family members it is ending its search for 33 missing crew members from a u. S. Cargo ship that sank last week off the coast of the bahamas. The search will end at 7 00 p. M. Tonight. Jeb bush meeting voters in iowa for a second day this week. He heard two forums where he continued to push his executive experience as florida governor. He and the superpack backing him are spending