October has been a great month for meals. One of the most interesting is being called a partnership between ge and baker hughes. We have details and insight into why shares are lower on the day. Look at that down more than 7 . Both are lowered with the dow down 20 points. The latest developments on the new clinton email investigation. After the bell we are joined by libertarian Vice President ial candidate bill weld to talk about the impact on the election. Shares of tesla and solar city. We have a closer look at why investors do not seem to like this announcement again. A lot of skepticism about the proposed merger between the companies. A big announcement tomorrow, as well. On this merger. We have more details. Lets begin with how this month is finishing up. Nice costume today. I try to keep the colors coordinated. This is supposed to be a big volatile month. Markets to the down side. S p down about 1. 7 for the month. Worst monthly showing since going back to january. The russell 2000 even worse. Interest rates a real problem. Take a look at sectors. Good thing the banks had terrific earnings because that saved us from going further south. Consumer discretionary, retailers had a terrible month. Health care all the more down across the board. And anything Interest Rate sensitive got hit as yields moved to the upside. Look at health care. Drug distributors down 16 . Talk of competitive drug pricing killed all of them. Bio tech down. Big pharma down all on concerns about regulation and drug pricing. How about sell in may go away. This is the end of the sixmonth period. The s p 500 is up 3 from may through october. Best sixmonth period coming up november through april. Tough month for the euro down about 2 . That can be a bit of an issue. Back to you. Don really showed up. And a lot of it has to do with the Federal Reserve and the rising probability that they raise Interest Rates in december. I guess the question is how much of that is priced in and how much are Companies Already planning for it when it comes to this earnings turn around we have seen. The only thing that has been a true market mover, true volatility mover has been Federal Reserve. Not the elections and not brexit. The perception that the fed might muchb ove at any point. I still think that the markets will have problems once we do it. And i think the chances are very high that they will go ahead. Im in the same camp as everybody else thinking they will raise in december. We went months wondering when if ever the election might have an impact on the markets. We saw that with bio techs and others on the fear of price caps and things. But the market is still positioned at least at this moment for clinton win house stays republican. If that changes notably in the next few days or next week or so i think you will see a lot more than that. Anything drug related got hit very badly this month by concerns about heavy regulation and competition. Very good. Thanks, bob. See you a little bit later. Huge volume of mergers and acquisitions. The latest deal announced General Electric combining oil and gas business with baker hughes. Morgan brennan has been following that story all day. So baker hughes, a ge company to combine the Worlds LargestOil Equipment mafrer to create a company with 32 billion in revenue. Ge will own the majority and raising 7. 4 billion to pay out a onetime special dividend of 7. 50 to baker hughes shareholders who own the other percent. Ges oil and gas chief will leave the company and he and other executives saying this deal is not just about scale but scope, as well. We are introducing a concept going across the value chain and then also providing productivity by usage of big data. So the confidence is there. And the teams, the cultural fit between the teams is already there. We have taken a look at those already. Talking about the value of those synergies it is estimated 14 billion is the new company doing one stop Services Shop for everything from fracking to power generation. Analysts say not only does it create a formidable competitor which had tried to buy baker hughes but it leverages ges internet of Things Software and comes at a time when the Broader Industries in the race to the bottom in terms of pricing. This deal is expected to close mid 2017. General electric turning marginally lower. Baker hughes down whopping 7 after the stock opens today up 5 . So big swing there and that is one part for that, one reason for that is because this is not an overall takeover of that company which is what a lot of shareholders and investors were looking for. There is also this question as to where we are in the cycle. Pr talked about how now is the right time to expect a slow recovery in terms of the price of oil. What a mega merger like this partnership is says about where we are. The industry has been crushed. And im glad you brought that up because one thing they said is this transaction is priced with the assumption that crude oil will stay at 45 to 60 a barrel through 2019. They are not particularly bullish on the price of crude over the next couple of years. That being said, a number of analysts have said this could be a sign of the bottom in terms of what we have seen with oil down turn and this is likely to strike a larger flurry within the Oil Field Services face. One is folks that have assets there and a lot of companies that have been hard hit because we have seen this race to the bottom in terms of pricing. The expectations we see a lot more grappling for scale and as ge called it, scope, in terms of what they can do for producers and infrastructure companies, et cetera. Thanks, morgan. See you later. Morgan brennan on that story. Lets get to the Closing Bell Exchange for the last day of october. Heading into november. David elson is with us. Peter costa of empire executions and look at the smile on Rick Santellis face. That was a close one last night but pulled off. When i get back here i find the yield on ten euroiure is up that is going to continue until your next vacation. Really the money is flowing in in certain areas. I think i had said that i think the financials going into the end of the year will be the strongest sector out of all of them. I am hurt by the Health Care Sector not doing as well this month. I do think that there will be a bottom shortly and i think that would be a time to get busy and buy more of those health care stocks. Everyone is waiting on the jobs report and on the fed tomorrow and the election next week. Its kind of like a lot of people were saying on the sidelines so you are not going to see Major Movement unless there is major news. Two things are happening. The s p is flat to barely positive. Oil dropping 4 just breaking below 47 a barrel and the vix, the volatility index for protection against swings has shot up here today. Are you surprised to see the resilience in the market . Not really. I think the earnings that we have seen so far out of financials and other names have been pretty good. Companies are making money. They are hiring. So i think the economy looks pretty good and so that generally holds stocks. I dont think the other things that are changing are changing that much. The oil is up. Its not changing at the pump that much. If it is it is 5 or 10 cents. The earnings have been pretty good across the board that we have seen and i think that is holding the market up. Of course, in new jersey price of gasoline is going up 23 cents a gallon tomorrow. The new tax goes into effect on november 1. Its rar lot. The week before an election they raise taxes like that. That is amazing. Is the Market Pricing in a fed rate increase this time around finally again . I would think it is. And i think there is a lot of ways you can attack that. We can look at fed fund futures. I think more interesting relationship is we know the relationship between easy money policies, stock buybacks of which they have slowed dramatically and what is going on relative to stocks. We know october wasnt a great month. Look at this. Ten year boom yields up 28 basis points. Ten year bond yields up 24 basis points for october. Two year up nine basis points. The dollar index was up three full cents. All that in a month that is not very good for stocks. So whether it is the fed or the lack of run way for Central Banks the dynamics are a little bit spooky on this halloween because there is one thing we were always able to hang our hat on and that was when the equity markets get messy the fixed income market usually obliges by making rates lower. That is not the case this time. That figures in about how the relationship moving forward will be impacted. Its a good point. There is a fed meeting this week. Traders arent expecting action so close to the election. December is where the rate hike odds go about 70 . What about the question that rick poses about the relationship between stocks and bonds, yields near five month highs. What does that mean for stocks . I think it should mean that the stock should come back in a little bit. This is not that kind of market. I think its been an earnings driven market which is the way it should be. We will continue with that. I think earnings season is almost over. The fed is not going to say anything on wednesday and the jobs report i dont think will come out. I dont think we will see surprise at all. If it is weaker there could be a case to be made for not doing anything in december but i mean the chances are very slim that the fed is not going to act in december. I personally have said it from the beginning of the year i dont this can they should do anything this year. Like i have said before there is a lot of smart people in that room and they look at a lot of different models and the models are telling them that december is when it is going to happen. You and Rick Santelli should have lunch sometime. I want to know what room he is talking about. Dave, before we go, would you buy financials here if you think the fed will raise rates . I think so. I think the rates go up, the revenues go up. This is an industry that has been struggling with the pricing being controlled by the fed. Imagine if apple is pricing the iphone determined by the fed. So rates up. The question will be how much of an impact it has on the rest of the economy. Earnings and financials will be up next year if rates muchb up in december. You are not worried about Political Risk of potential clinton victory whether Elizabeth Warren and Bernie Sanders get more power . A lot of people see that as a risk for the sector. I think depends how big you are. I think the bulk of the industry is they want tobe there. The regulations are favoring the depositories which is what i own, the funds we run. Im not that concerned about it. I think the industry is doing well. A rate rise will expand margins and earnings. If the stocks follow earnings well be okay. I feel pretty good about next year. Thanks guys. Appreciate it. See you later. Have a good rest of the day. We are heading to the close about 46 minutes left. Another narrowly traded day. The dow is down six points. As you see the s p and nasdaq are fractionally higher. Up next we will tell you about the latest developments in the fbis probe of newly discovered Clinton Emails and discuss what happens next in the investigation and how it could effect the election. Coming up, teslas elon musk unveiling new solar roof shingles three weeks before the proposed merger. Phil lebeau looks at the high stakes for musk and for those companies coming up. As a supervisor at pg e, its my job to protect public safety, keeping the power lines clear, while also protecting the environment. The Natural World is a beautiful thing, the work that we do helps us protect it. Public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. We want to keep the power on for our customers. We want to keep our community safe. This is our community, this is where we live. We need to make sure that we have a beautiful place for our children to live. Together, were building a better california. Check out a few moovs on wall street. Loews Corporation One of the biggest gainers in the s p reporting better than expected Quarterly Earnings thanks in part to declining expenses. Company owns insurer cna financial, Boardwalk Pipeline Partners and loews hotels. Nike is hitting a 52week low. Bank of america downgraded and cut price target to 46 a share from 55. It is trading at 50 right now. Expecting revenue to remain under pressure through next year due to intensifying competition to which sara says. The stock is down almost 20 so far this year. The bank of america note is particularly critical of nike saying they are facing an innovation gap, havent released Major Products and said they are not going to continue to gain market share into 2017 especially when there is so much competition from underarmer and adidas. Underarmer down double digits. They lost the Sporting Goods store that went out of business. That was part of it. Sports authority. Adidas is resurging in the u. S. It has been popular bringing back old school stan smiths. The question is how much is baked into the stock price for nike which is a company i cover. They seem to still be growing in places like china where other companies are suffering. Speaking of growing in china be sure to catch yum brands ceo greg creed and mickey pant tomorrow morning. That is squawk on the street starting at 9 00 a. M. Eastern time. They are preparing to split. Raise your hand if you remember who stan smith is. I know the shoes. He is now just a shoe. Used to be a great tennis player. I wonder if he gets royalties from the shoe. I hope so. New revelations in the fbis probe of Hillary Clintons private email server. Eamon javers has the latest. Here is context in terms of james comeys thinking. A former fbi official tells cnbc that james comey argued that it was too close to the election day to name russia as meddling and comey insured the fbis name was not on the document that the u. S. Government put out. The official said some government insiders are perplexed as to why comey would have election timing concerns with the russian disclosure but not apparently with the Hillary Clinton email disclosure made on friday. In the end the department of Homeland Security and office of director of National Intelligence issued the statement saying the u. S. Intelligence community is confident that the russian government directed the recent compromises of emails from u. S. Persons and institutions including from u. S. Political organizations. These thefts and disclosures are intended to interfere with the u. S. Election process. An fbi spokesperson declined to comment when asked about the Decision Making. Over at the white house i can tell you also they are not commenting, as well. Josh earnest taking no stance at all in all of this. Ill neither defend nor criticize what director comey has decided to communicate to the public about this investigation. What i will say is that the department of justice in our democracy is given expansive authority to conduct investigations. The president believes there are a set of significant institutional responsibilities that officials at the department of justice and fbi must fulfill. Interesting to learn about comeys Decision Making on the russian issue and later on the email issue im told that comey agreed with the conclusion that the u. S. Intelligence community had come to that it was a foreign power that was trying to manipulate the u. S. Election but didnt want the fbi to be part of the statement because they thought it was too close to the election at the time that they did that back on october 7. Thank you. Well see you later. Lets talk more about the new emails and the impact on the election. Joining us matt miller, former director of the office of Public Affairs for the department of justice and david riffkin. Matt, you have been very critical of comeys move to do this. Now that we have had a few days to digest it what do you think will be the ultimate damage in. I dont know that we know the outcome. The fact that we discussing that is one of the problems. The reason the fbi and department of justice have rules against taking action so close to the election is because they dont want to become a political football. They dont want to have people asking questions. Did this move help this candidate or hurt this candidate . I was stunned to hear this report that director comey objected to signing on that russia was interfering in the election. It is a point of russian state actors. If he thought that was too controversial to do before the election it is hard to understand why he thought naming Hillary Clinton in this new investigation letter to congress was somehow acceptable. David, dont you think that director comey was sort of between a rock and a hard place . He learned about this on thursday. If he didnt say anything wouldnt we criticize if we found out that he knew about the new emails . Agreed. The other argument is you have to look at the totality. In july 5 director comey unprecedented action gave a press conference while we was critical of secretary clinton gave her a clean bill of health as far as possibility of bringing criminal charges. In the process of defending that decision which is important to maintain credibility of department of justice he testified to congress. He was literally in no position to take any other course of action. Its amazing to me you have partisans on one side who harshly criticize him for giving a boost to blend this campaign and completely decouple that from his decision here now. The only reaso