Maybe nearing a deal to acquire time warner. The two sides are in advanced talks and the deal can happen within days. At t is down about 3. 5. He is literally working the phones as we speak. Internet companies you probably know this suffering two waves of Cyber Attacks. The socalled denial of service tax affecting sites like amazon, twitter, spotify and several others. Feel like the internet was going through molass s. Today we will talk to security expert on who may be behind the attacks. Sales force backing away from buying twitter. Does it have its eye on any other company . Marc benioff will join us. Mcdonalds meng thaem. Courtney reagan is at the mcdonalds trading post right there. So you know Ronald Mcdonald may be in hiding because of the clown thing. Shares up about 3. 4 here today at post five. Responsible for about 24 points on the Dow Jones Industrial average. We had earnings beating expectations both below a year ago levels. Strong global same store sales up 3. 5 . That is the fifth straight quarter that those saw growth. It is a very important number for mcdonalds. All Day Breakfast and the new recipe for Chicken Nuggets at least really becoming very popular with consumers. Microsoft is responsible for adding about 16 points or so to the dow as far as the upside is concerned. Those shares are up by about 4. 5 . Michael santoli points out the market value is shy of its peak back during the tech bubble. Still its a record day for microsoft. Like mcdonalds both earnings and revenue beating expectations thanks in part to growing strength in microsofts cloudrelated businesses. What they add to the dow ge takes away. Ge subtracting about a point or so impact. Shares are down about a half a percent. Global industrial player missing on revenues. It was power and Renewable Energy businesses. Ge narrowing the full year guidance and adding four billion to stock buy back but not enough to excite investors today. Now to new developments on time warner being courted by at t. We could see a deal perhaps as soon as monday. It seems hard to imagine. Hearing it come out of my mouth seems amazing to think about. That is the case. People familiar with the situation indicate that advisers to time warner have been working for quite some time on a potential deal with at t. This has advanced quickly. Only this morning that we it was a real possibility that at t could buy time warner but didnt seem to be quite as close. As we had more opportunity to speak to more people it is quite close. It doesnt mean it is going to happen. We dont know price though some people are speculating it could be as much as 110 a share. A couple of years ago when time warner rejected the advances of fox at the time which was offering around 85 a share there was a thought that it had to be triple digits to believe that there was Something Real worth pursuing there. He believed at the time and i remember having reported on it that in a few years down the road there might be other potential suitors for time warner including the likes of at t which it appears is willing to diversify strongly away from the core wireless business into the content business with what would be a huge deal with implications not just for at t. Shares are down about 3. 3 . For many other Media Companies and distributors one key question who else would conceivably be there . Time would be running short if they wanted to do that. The likes of apple which some said would they be interested in making a jump unclear that any of them at this point had the ability to do it but doesnt appear according to conversations the willingness to do it. Verizon as you guys know has been active in terms of aligning smaller content offerings whether aol or yahoo. This takes the competitor in wireless into a much different arena similar to our own Parent Company comcast which bought nbc universal. Comcast not thought to be interested in part because it doesnt want to go through what would be a significant regulatory review. The 20year history looks like what at this point . Whats funny is you go back. I know you remember all of this. Time warner was a combination of distribution and content platform and here we are now they come back and put it together again. Back to the days where apparently there is a feeling on the part of those in the wireless business at t and verizon that content is something they can lead with. Hbo represents an important over the top platform that you can exploit. It is not clear what at t is getting otherwise. Cable networks we know, movie studio, is that really something it wants . I guess so. You and i lets recreate the information we had about an hour ago. I could not believe the relatively small market cap at time warner represents these days. 70 billion. About 70 billion. Any deal if you got to 110 a good amount would be in stock. It is unclear how much debt capacity at t has on its Balance Sheet given where it is on leverage. Youre right. Disney is the biggest out there at 150 billion. Lets call it more pure play content. Comcast has a larger market cap. Much value comes from cable and broadband. At t is an enormous company. It is looking at business that is not growing that quickly. Look at earnings from yesterday. Facing a lot of competition. They made the decision to buy directv. Some people questioned that. Some people may be questioning this. Thus far the shareholders are not reacting too negatively given where the stock price is. At t with directv is the biggest in terms of paid tv subscribers more so than our Parent Company. More so than charter. So what position does that leave them in relative to verizon and relative to the rest of the media landscape . That landscape is changing so dramatically right now. For a long time i sat here and talked about the unbundling, over the top opportunities that consumers have to access the internet as being very slow. Things are picking up. It is coming more quickly now. You is to look at this. What will this do for their ability to retain wireless customers which is moving towards video. What does it mean for over the top offerings which they unveiled as recently as this week in terms of at t and directv now and hbo has its own products. This world is changing so quickly. I think there is a lot of different responses that will take place as a result of this deal should it actually get to completion. Well let you go. Im sure your phone is ringing off the hook. Let us know what you hear. Lets get to our closing bell exchange. Joining us is renee, keith bliss regaling everyone with the details of the fish he caught the other day. Hell tell you about it. Jack checks in from chicagoland where the cubbies lead my dodgers 32. That doesnt make you a bad person, jack. Keith, if memory serves this is an expiration day either volume or volatility. We have neither again today. It is part of the continuing theme that we have seen since we hit alltime highs in august. We have traded into a bearish pattern of dow and s p 500 where we have a descending triangle formation that has played out. May not play out completely until late december, early january. It is there and it is evident. You see that when you have a down trend which we have gotten since august and decreasing volume. Your point about today being expiration we expect outside volume as people right size their position against any of the options contracts that they have. These are bearish signs that we need to be aware of. At the same time we are about to come out of a weak period and get to a strong period in the first week of november coincide around the election time. Im curious to see how the two will play out. I would expect more side ways trading with the bias being towards the down side as opposed to any break out. How are you guys navigating the markets . I think that markets are signaling that we are going to have a likely outcome. Feeling a little more comfortable about getting back into the market. I especially like financials right now. There is a lot of Different Things that are going on in that space that are making it very interesting. A bit of a contrar yn place. You are expecting them to raise rates in december . I was back on in september i thought they were going to raise it then. I think momentum is building for it to happen. There are a couple of things that i think are really interesting particularly with Asset Management companies, passive versus active management is a longstanding discussion. So we have had just in the last week two major Asset ManagementMutual Fund Companies that are planning to merge because they have to be able to leverage their Profit Margins and trying to align themselves with a broader platform so that they can survive. So janice Just Announced that last week. This morning calvert are merging. I think we will see a lot more happening in that space. Jack, david is famous for acronyms. You have a bit of analysis with your three es. Its all about the es. We have the election, earnings, energy. Everyone is really missing the earnings picture. Remember, just a quote, earnings are the life blood of the market. Guess what the top revenues are starting to scare me. Ge was a strong statement even though we had good news out of microsoft and others. We had about 20 of s p 500 report these top line revenues have to increase. We have to see better numbers coming out of Corporate America or we are too expensive. Energy we are starting to see that strong correlation between what is happening in crude and what is happening in equities. I think that will stay that way until the end of the year. We have the end of the month coming up and this election. And quite frankly it is starting to shape up to what i call a lose lose scenario for equities. It is starting to feel as if there isnt going to be a clear winner as far as equity markets are concerned. They factor in a hillary victory but the question is will it continue to go up if hillary doesnt. Going back to your point which has been a dominant theme about active versus passive approaches to this market, what is the mix that you guys are typically using here . We actually use passive as a core part of our portfolio. And then use some of the active management. Even then it has to be low cost. Our clients are asking for that. They are demanding it and now that we have this recent department of labor rule that is putting additional pressure on this space. So we use both of them but we are actively more involved with the passive side of the investment. Im curious your view of earnings and the quality of the earnings we have seen so far and the impact that may have on the market. You have a lot of things coming out. We will have six straight quarters of declining year on year earnings, six straight quarters of declining sales. You have stock buybacks being curtailed pretty substantially and you are moving into an environment where the fed will start hiking Interest Rates. All of those are negatives for the equity markets. That is why you are starting to see the beari isish formations. So to jacks point it is absolutely right. It is the life blood of the equity market. If it is absent and the market thinks it will continue for some time you will see equity markets pull back or at least stall out. That is where we are right now. Thank you folks. Appreciate your thoughts on todays market. Have a good weekend. 45 minutes to go here. Dow climbing into positive territory after starting a session much weaker. It is up about a point. The nasdaq is up 14. Coming up, marc benioff will speak to us exclusively. And if there is enough space in the cloud for everyone to make it. Also head elon musks tesla putting a brakes for Ride Sharing Services like uber or lyft. Phil lebeau has details next. You watching cnbc, first in Business World wide. This car is traveling over 200 miles per hour. To win, every millisecond matters. Both on the track and thousands of miles away. With the help of at t, Red Bull Racing can share critical information about every inch of the car from virtually anywhere. Brakes are getting warm. Confirmed, daniel you need to cool your brakes. Understood, brake bias back 2 clicks. Giving them the agility to have speed precision. Because no one knows like at t. Will your business be ready when growth presents itself . American express open cards can help you take on a new job, or fill a big order or expand your office and take on whatever comes next. Find out how American Express cards and services can help prepare you for growth at open. Com. Find out how American Express cards and services theno one surface. Out there. No one speed. No one way of driving on each and every road. But there is one car that can conquer them all, the mercedesbenz cclass. Five driving modes let you customize the steering, shift points, and suspension to fit the mood youre in. And the road youre on. The 2016 cclass. Lease the c300 for 369 a month at your local mercedesbenz dealer. The dow is down one point. Movies among the laggers in todays market. The Credit Ratings agency says the Justice Department is planning to sue the company over valuations it assigned to Mortgage Backed securities that led up to the financial crisis of 2008 and moodys says some state attorneys general have indicated their plans to pursue similar claims. The news overshadowed moodys earnings beat. The stock is down 5 right now. Eight years after the fact. What took them so long . Interesting. If you are working on a plan to use your selfdriving tesla to make money as uber or lyft driver you better come up with plan b. Tesla is developing selfdriving technology so that its vehicles being built will be able to drive themselves potentially in a couple of years. The hardware will allow them to do that as they roll out software. Over the Years Software updates. What is interesting is there is a disclaimer on the tesla marketing website with regards to how people might want to use a selfdriving tesla in the future. Elon musk hinted at this that we are likely to see a network of selfdriving teslas at some point. The disclaimer says using a selfdriving tesla for car sharg and ride hailing for friend and family is fine but doing so for revenue purposes will only be permissible on the Tesla Network, details of which will be released next year. This comes as uber is working on selfdriving vehicle technology. We were in pittsburgh, had a chance to test it out. They will be likely expanding the selfdriving Testing Program beyond pittsburgh. Meanwhile, lyft saying we are not developing selfdriving vehicles. We are a network but not developing those vehicles. As you take a look at shares of tesla and gm they both report earnings next week. Keep this in mind. I was talking with a lawyer friend of mine and i said can tesla say if you buy one of these you cant use it for any other Ride Share Companies except with tesla and he laughed. He said once you buy a vehicle whatever you do with the vehicle is your business. If you lease it from tesla that is a different story. If you buy it and you own it you can do whatever you want. You want a Ride Share Program for creepy clowns go ahead and do it. Nobody can tell you exactly what you can do although the disclaimer says they want you to use it as part of a Tesla Network if developed. That is a good one, ride sharing for creepy clowns. Thats good. I mean, im the wrong guy to bring this up because im not sure there is public clamoring for driverless cars. Do you want to get into an uber car, an empty uber car. Were a long ways from that happening because regulators are likely going to require a driver in the front seat for many, many, many years to come. Now, eventually somewhere down the road you might see that. But its interesting that tesla is laying out the ground work that if they establish a Tesla Network they are going to expect you using teslas for that network and not for uber. Thanks, phil. Thank you, phil. About 38 minutes until the close. Dow lower about seven points. S p is negative 2. The nasdaq remains up 12. Twitter is off the list. Salesforce. Com Ceo Marc Benioff will tell us which company he is i didnting for possible takeover. A part of the infrastructure attacked. A few sites affected. We will have the latest developments and who could be behind this troubling attack. Stay with us. Today many are gathering in houston for the celebration of women in computing conference. Our own Julia Boorstin is at that conference. She joins us now along with marc benioff who was a key note speaker at that event today. Please say hello to marc for us. Thanks so much. I appreciate it. Thank you for joining me here. You about to go on stage and talk about what you are doing at sales force to help close the gender gap in technology, a gap that is large. Why is it such an important issue for your business . Its important for my business because it is important to my employees and my customers. Its important for my partners and therefore it is important to me. I will tell you that having a more diversity in our work force is extremely important to us especially gender equality. That is really important. And we have made tremendous gains in the last five years. We have seen the number of women in our organization rise but its not just about that. Its not just about more women. It is not just about getting them great advancement. It is about Something Else which is pay equity that is women have to be paid the same as men. And as we have seen in our industry and other industries that just is not true. We made a big decision which is to pay women the same as men and we made a reversal where we had to adjust 3 million so that we did pay all women the same as men. And it is something that i am very excited that we made this change. Another g