Playboy and what happens when brands walk away from their history . Now its really nothing but the articles. Okay. China fears adding to todays weakness. But earnings as tiyler mentione, front and center. You can see the shares are a little changed right now. Intel flat. Jp morgan chase slightly lower. Intel is down 10 this year. It rallied big over the past one month. J. P. Morgan is down more than 1 . Josh lipton covering intel. Take it away. Mandy, heres what to watch when intel reports. So, one, what is the state for pc demand . And here investors not expecting much. After all, idc reports that pc shipments dropped 11 in q3. Alex gowna says the chipmaker cant post a number thats a lot worse than the industry. He thinks sales in intels Client Computing Group which includes chips for pcs fell 12 in the quarter to 8. 1 billion. But investors dont expect much for the pc business, they do want to see strength in the companys other big business. Chips for data centers. Doug friedman says this Business Needs to keep the momentum going to help offset declines in the pc market. He thinks it will with sales in that business jumping 16 year over year to 4. 3 billion. Intel stock as you mentioned down 10 so far this year. But up about 30 from its 52week low. Both say they need to see that Data Center Business stay strong. One final point, the street will be looking for any updates about intels deal to buy altera for 17 billion. That deal has won the approval for shareholders. Theyre waiting for clarity about governmental approvals regarding that bid. Intel reports after the bell. Stay tuned. All right. Josh. Another one that is going to report after the bell, usually it doesnt. Its j. P. Morgan. It has usually reported before. But not this time. Were looking at the big issues facing the big banks. It is a double feature by b of a and wells fargo tomorrow and also the fact that the chairman and ceo jamie diamond will be participating in tonights earnings from the west coast. Thats what led j. P. Morgan to move up the call to after the bell today. The street is looking for 1. 37 per share with revenue of 23. 7 billion, representing a drop of 6 from the same time a year ago. Even amid slowing sales, expect head count reductions, line by line cost cutting and lower legal xpenexpenses to help that bottom line. Performance across the banks Business Units could be spotty. You have low rates which means even an uptick in lending to consume aerrs and companies cou mean its less profitable for the bank as they make less on interest. Low Oil Prices Mean that some borrowers and energy patch become more distressed and perhaps unable or less able to service loans. Then theres the encertain macroenvironment. Increased volatility that is expected to hit trading revenues in equities and fixed incomes. The expectations, theyre not particular to j. P. Morgan. They also apply to b of a and wells fargo. Citigroup and Goldman Sachs on thursday rounding out the week. So far, the street sees only wells fargo growing its revenues in the Third Quarter. You can see many people have been buying the banks hoping the macroconditions will turn around. The expecttation, not yet. Thank you very much for that. Shares of barclays are under pressure right now. The bank getting ready to name a new ceo. It may be looking to tap a long time j. P. Morgan veteran. Mary thompson is looking at what this move may mean. Reportedly the british bank is set to name 58yearold jess daily to the post pend ago principle of law. If staley is tapped background suggests he would expand the Investment Bank. That is contrary to the path that barclays has taken over the last few years. Currently a managing partner at Blue Mountain capital, staley worked at j. P. Morgan for 30 years. He was moved to another role in 2012. He was among the candidates considered back in 2012. Jenkins was pushed out this summer amid disappointment he moved too slow to restructure barclays. They promised a tough 18 months ahead of cost cutting and asset sales. He spoke of building up the Investment Bank. It was hit by the financial crisis. Jp morgans Investment Bank performance was more about revenue and market share gains which is what is needed in the Current Business and regulatory environment. Cnbcs calls to staley were declined and barclays declined comment. All right. Miller reaching what they call a pact in principle on the key terms of a deal in which abnbev. It would create the worlds biggest brewer. 30 of market share across the globe after divestitures. Under the agreement, shares of miller will get 67. 60 share in tax. Ab would agree to a best efforts commitment to obtain any regulatory clearances before the deal closes. And get this there is a 3 billion payment to sab miller if the transaction fails to close. Maybe they shared a shiraz instead. Data coming out of china sparking fears in the market all over again. Were well off our lows. Between gains and losses right now, the dow is down just a little. It does still manage to close in the black today, that will be the eighth straight day of gains. Something that really hasnt happened in since i think march of 2013. The s p 500 is sitting down by. 3 . Same for the nasdaq. Oil, take a look. Very small gains there. 7 or 37 cents. Lets get more on the trading action at this hour from the New York Stock Exchange floor. Bob pisani . Lets take a look at the s p 500. Were drifting a little lower in the middle of the day. We moved into negative territory. You cant really blame oil. Its not energy that is the problem. I think i know what is going on. Let me show you the kbe. This is the etf of the banks. This is where everybody goes to trade the banks. Theyre drifting steadily lower. Thats an issue. The problem is simple. The banks tend to do well going into the few weeks before earnings. As they hit earnings season, the week of, they usually will sell off. So this is a fairly typical pattern. I dont see a lot of news out there on the banks. Im not surprised to see this moving slightly lower. Another problem is the industrial stocks. Industrials are going to have a very difficult time. Theyre having problems with the strong dollar. Weve seen reports already about that. And i think thats going to be an issue. United tech, honeywell, ge should be reporting on friday. Textron. Speaking of the strong dollar, big in brazil. Twothirds of the revenues outside of the United States are down 4 . They sharply lowered the profit expectations. You know the brazilian real appreciated 30 . You know what its like making non brazil and putting money back into the United States for dollars . You get killed. Thats whats happening to these companies with the strong dollars trying to repatriate money back to the United States. This is a preview of the problems the industrials are going to have. Meantime, transports are having a problem. News in some of these rider reduced the 2015 earnings guidance. Technical reasons. Jetblue was downgraded at jp morgan. And csx, nothing there. Theyre reporting after the close. Again, i think some people just sort of liting up in anticipati lightening up in the wake of those. The vix was 25 going into october. Its steady down and up today. 16 or so at the open this morning. A lot calmer the last couple weeks. Okay. Thank you very much bob pisani. Lets head to the nasdaq. Bertha, what you are watching . A calm before the earnings storm. Folks sitting on the sidelines waiting for intel this afternoon. Interestingly, we have chips down, biotechs down. Were getting a boost from the big cap tech names today. Apple has been positive for much of the day. Just barely holding on by a nickel there. Parent company of google, also thats whats really Holding Things up. Intel, just now slipping into negative territory. What is interesting is a lot of the beaten down stocks have been moving higher today. Maybe we have all the brewing news, the coffee brewer is higher. Tesla coming off negative analyst ratings today. The l. A. Times reporting that Small Business owners who buy a model x can qualify for a 25,000 tax reduction on top of the 9,000 state and federal tax credits for buying an interest car. Media stocks today, also seem to be moving higher. Again, not any particular sector winning. But bob mentioned the big losers are the airlines. Not just jetblue here. Jetblue is one that actually got a downgrade but j. P. Morgan says they see lower revenue per available seat mile. The did it counters really declining hard. Back to you. Thank you very much. Lets get to dominick chu. Shares are nearing the worst levels today, down by 3 now. The lockup period expired for the stock. It ended today. So 50 million shares of etsy are available for sale. The stock lost about a quarter value since the april ipo. Etsy was one of those distributor 50 companies over the last couple years. Thank you. Playboy covers up. No more nude photos in the magazine. Company blames the internet for the move. What this means for playboy and what happens when brands walk away from their history . Plus, hedge funds getting slammed. Inve investments shutting down a big funneled. We have the fallout. Isnt it beautiful when things just come together . Build a beautiful website with squarespace. Prge a manufacturer. Well thats why i dug this out for you. Its your grandpappys hammer and he would have wanted you to have it. It meant a lot to him. Yes, ge makes powerful machines. But ill be writing the code that will allow those machines to share information with each other. Ill be changing the way the world works. interrupting you cant pick it up, can you . Go ahead. He cant lift the hammer. Its okay though youre going to change the world. From and the people whought you underwhelbrought youet speeds. Temperamental satellite television. Introducing. Underwhelming internet speeds and temperamental television. In one. Welcome to the moment no ones been waiting for. The Fastest Internet and the best tv experience is already here with x1. Only from xfinity. Welcome back to power lunch. Twitter shares are up more than 3 after the Company Announced it would lay off 8 of the Global Workforce yesterday they expect to go up 35 in the next six months. Theyre higher by 3 . Hewlettpackard saying the board approved a Buyback Program according to an sec filing. And rider systems cutting the Current Quarter and full year earnings guidance, citing lower than expected used vehicle sales among other factors. The shares currently down by 8 . Playboy will no longer post nude pictures. What caused the change . Welcome to power lunch. This cant than playboy just discovered there are naked photos and more on the internet. Why would they even continue to publish this magazine when so much it would seem of the companys value exists totally apart from the magazine . I think theyre always a brand about culture and lifestyle. Theyre trying to shift that equation over to the lifestyle side. There are a the love magazines that are lifestyle. What makes them different . What is Playboy Magazine going to be now . I think playboy for a lot of folks is there is a culture relevance about that brand that goes back a long time. It was about, you know, sort of, you know, it was playboy. It was about breakish gentlemen and that was their thing which i think is relevant. Really . You think its relevant in the same way that it was in 1954 and 1965 . I think it could be. It has enough relevance that it could be relevant in todays marketplace. Okay. Do you think that give me some examples of other brands like playboy that have survived and thrived when they walked away from what made them famous in the first place and in this case, photos in the magazine. I dont agree thats what made them famous. They had the mixture of pornography and the great interviews, the great articles. There was always more to brand than being a skin magazine. More than penthouse or hustler. Talking about, you know, he was asking you about what other particular brands are able to rebrand if you like. What do you think of tom brady calling out coke coal why and frosted flakes as poison for kids . Hes a influential figure. Is this something that may spark a rebranding for them and how could they do that . I think those are both brands that know they have challenges. The food category has challenges to begin with. Theres lots of examples. You know, old spice was brand pas scent, right . My son who is 14 wears old spice. There are examples. Its not easy. There are examples of brands that can convert. Its hard to get that. Playboy has it. They have the heritage. They have a very clear authentic position that may be dated. Thats a very strong place to start from than just zero. Yeah. I think mr. Brady ought to worry more about liz brand than somebody elses brand. That is a little potkettle stuff. We appreciate it. Okay. Check out the shares of Fortress Investment group. Theyre soaring today. Down huge this year. Firm is shutting down a big hedge fund. How bad are they hurting in this market . Plus, earnings getting to full swing. The sectors expected to outperform. Well bring them to you. Stay with us on power lunch. Who do you work for . Your boss . Yourself . Your family . Our Financial Advisors are free to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Shares of Fortress Investment group is soaring 6 o . The firm is closing down one of the big hedge funds and the funds chief Investment Officer is leaving. Kate kelly joins us with the fallout. Kate . Mandy, i think this story is very interesting. First of all, we got headlines within the last hour or two as to what was actually happening. After about 12 to 18 hours of a lot of rumors and reports. The cio who has been a frequent guest on our air and in general on the hedge fund speaking circuit is stepping down at the end of the year. He will be taking some equity with him. His shares have been repurchased for 4. 50 at a discount to the stock. Hes also closing down the fortress macrofund which was a Foundational Fund for this company. An earlier version of it was born in 2002 under a different name. At their peak, they had 8 billion. Recently, its come to a billion and a half after a series of missteps in the market. They were down 1 . Year to date through september though, down 17. 5 . Now just to put that in perspective, the average hedge fund not doing all that well either. Its down 1. 5 roughly year to date according to hfr. The average macrofund is also in the red. But even by that measure, being down 18 is pretty bad. Apparently what killed the most recently after a series of wrong way trades was brazil. On september 23rd when the real hit the all time low, they were on the wrong side of that trade and they also got hurt on a brazilian rates bet. Well see what happens from here. I think its interesting. I think its been very tough sailing. How symbolic is this for the Hedge Fund Industry . I think it is symbolic. You see the numbers. Again, not as bad as fortress. Still in the red. This is an interesting strategy. Can you trade currencies, commodities, individual stocks. Most people trade baskets of stocks and bonds. So you really, the world is your investing oyster. But you have to have conviction. You have to have a thesis. If youre not headed in the right direction, can you get hurt pretty badly on the down side. Of course, thats what hedging should be all about. Thats what having a balanced portfolio is all b but it is redemption season for hedge funds. Investors have been notified funds in some cases. September 30th is a popular notification date. And then in the coming weeks and months, we may see people selling out of positions. It will be hard to tell whats going on. Of course, its anonymous. If we see further declines and volatility in the markets, it may be getting enhanced by this redemption activity. People need to raise cash. Something certainly to watch. Thank you so much, kate kelly. Cold prices, they are closing now. Lets see how the metals are doing. Gold is a dollar higher. There you see it. Down about 5 since july 1. Silver, copper, there you see the numbers. Negative for all three of those but for silver, which is higher by a quarter of. 1 or four pennies. Okay. Lets take a look at what is happening in the bond market this hour. You can see a lot of green. That means both safe haven treasury prices are rising and yields moving lower. This is on the back of some jitters about the trade data we got out of china overnight. Imports to china plunging by 20 . And at this stage, think think rate futures are suggesting that traders are anticipating the firstrate hike from the fed around march of next year. Thats what were watching here. Earnings front and center today with tech and financials. So which sectors should you be betting on this earnings season . Two sectors that are set to outperform and two that are expected to weigh this market down. Plus, millionaires losing mojo. Something happening with the world that hasnt happened since the financial crisis. Well explain. Hi, everybody. Here is your update for this hour. Planned parenthood changed the policy regarding the use of fetal tissue for research. Agency chief sending a letter to the National Institutes of health saying the organization will no longer accept any payment to cover the cost of Research Using aborted fetal tissue. The violence in israel continuing. Two men opened fire and stabbed passengers on a bus in jerusalem. One of the attackers