Divide at the Federal Reserve. But we do begin with fears about the worlds biggest retailer. Shares of walmart tanking right now after cutting its threeyear outlook. Were currently down by 8. 3 at 61. 16 a share. Walmart executives meeting with analysts at this hour, as we mentioned, and Courtney Reagan has all the details of it. Hi there. Walmart investor meeting, the analyst q a wrapping up, the group asking for more clarify on the warning on longterm guidance but not much more clarity was given. Executives highlighting that the Major Investments they continue to make for the earnings per share impact. Fiscal year 2016. Walmart now expecting sales growth to be flat due to Foreign Exchange impact. Also for 2016, reiterating the earnings per share guidance of 440 to 470 but 2017, thats when the he have yet guidance comes in. Eps down between 6 and 12 from prior year, walmarts guidance given. The impact really lies in the fiscal year 2017. Walmart says its the second year of heavy investment for the company, mainly in ecommerce and wage increases that. Wage investment accounting for 75 of the eps reduction in fiscal year 2017. Moving forward, walmart sees 2018 relatively flat, 2019 eps up 5 to 10 from the prior year so as a result of all that have investment basically walmart cfo holly says walmart expects sales growth of 45 billion to 60 billion over the next three years and a 20 billion Share Buyback. A lot of numbers to go through. A little factoid with you, with the lows of the day walmart lost more than 20 billion in market cap. This is the fourth worst trading day for walmart in 20 years. Dominic chu has been looking at where analysts stand on the retail giant. Dom . As we talk about the 20 billion Share Buyback that courtney just referred to, its amazing to think that 20 billion at its low that has shaved offer the value of walmart overall the, so as you look at intraday, still neither lows and if you look year to date the stock has been on a fairly decent slide and of the yeartodate chart not pretty at all for walmart. Just to put the 21 billion in perspective, if you take 21 billion and take a look at some of the companies that equates to in terms of market value, its pretty interesting. The likes of hershey worth around that amount of money and mike ron worth around that amount of money so its almost like youve lost that company in terms of market value. When it comes to what happened to the analysts here, on average they still say that the target price implied by analysts so far means theres possibly 12 implied upside. There are eight buy ratings, 19 holds and 3 sells. It also, again, just to kind of put a cap on this, mandy, 21 billion in Consumer Product terms. Its the equivalent at average prices on walmart. Com of 600 million boxes of pampers diapers to put in a bit of perspective. Got that perspective very clearly in my mind. Thank you very much, dom. Walmart is the biggest drag on the down as the dow is down as much as 128 earlier and walmart pulling down the Dollar Stores and bob pisani joins us from the floor of the stock exchange. Hey, bob. Getting a modest rally in the middle of the day. Put up the s p 500, 1994 at 11 30 for the european open or close and we moved up rather dramatically. We can show whats going on and were in positive territory and now sitting flat. Energy materials and health with a rally late in the afternoon, late in the morning at this point, right across the board. No particular movement, no particular reason for that but put up energy, materials, health care, technology and Consumer Staples leading the market. A lot of people are saying walmart is the reason the stock market dropped. Thats part of it, but look at s p 500. Walmart announcement came out around 10 30 and we saw a further decline after that but stocks had already been declining going into that. Lack at the department stores, sears, jc penney, dill yards, nordstrom, all to the downside as well as the discount, target, dollar tree, kohls and ross stores but, again, walmart dropping before going into the announcement the ipo market facing its biggest test of the year. Kayla tausche reports on it from the nyse. Hey, it is a big test, and its a turbulent market backdrop. Two debtheavy companies are still on track to price their shares for some 5 billion in stock. Its the biggest week for ipos that weve seen all year. First you will albertson, the Third LargestGrocery Store in the country and its hoping to put its offering between 23 and 26 a share raising about 1. 6 billion at midpoint and up to about 1. 9 billion and payment processor first data that wants to raise its price between 18 and 20 a share and at midpoint of that range it would value it at around 17 billion. Well see after market close whether their advisers decide if those ranges still hold. What they will look at is the vix as a broad index of appetite and thats up slightly but still below the 20 level. They will also look at the closest stocks for albertsons, and theres kroger down 3. 33 and, unfortunately, walmart as we were just discussing. You know the story, walmart down 8. 5 , think first payments or fis, the only name in that bucket that is in the green. If thats Companies Price below the range they wont be alone. Majority of deals that happened since labor day priced below the range and the average deal has traded down 3 . Thats not a great return on your investment so some companies are saying well wait. Neiman marcus is the latest to do so and for each of the last two weeks, guys, 11 companies on the calendar set to ipo in each of the last two weeks and only five happened and two behemoths are going to try to make it through and well learn in a few hours whether they can do it. Federal governor Daniel Tarullo speaking to our Steve Liesman on our power lunch and he made news saying he doesnt think its appropriate to raise Interest Rates this year and fed chief yellen said she expects a rate hike this year so are we seeing the signs of an internal revolt . Too strong a word, divide at fed, Steve Liesman . One analyst stan greenhouse from btit called it mutiny at the fed. Two writers saying they dont think the fed should hike this year this. Comes after fed chair janet yellen saying in late september that she is among those that see the rates being raised in 2015. President ially appointed governors that work right with the chair and heres what tarullo said yesterday. Right now my expectation is given where i think the economy would go you wouldnt expect it would be appropriate to raise rates, but i want to hasten to add that that is an outlook that changes based on developments in the economy and our being forward looking about it. Well talk about that in a second but heres what the fed governor said saying, quote, equilibrium real rates likely to remain for some time and policy options more limited if conditions deteriorate than if they accelerate, Risk Management considerations counsel and waiting to see if the outlooks diminished. Disagreement over the timing 6 liftoff is getting much more heat and personal than i, diane, would expect. Janet yellen spoke ahead of the second jobs report and its entirely possible, folks, that both governors got a green light to make the remarks. Heres the problem. Yellen is likely comfortable taking october a rate hike in october off the table and unlikely uncomfortable taking it off and thinking there has to be a live meeting and the comments may have gone further than yellen wanted appearing the appearance of a couple of doves. What did dubbedly say . In the middle feeling that it could happen. Everybody is pred dating this on the outcome. On the outcome. On the data. On the data. Think about between now and december. Have to leave it there. Lets go to seema mody for a news alert. Hey, tyler, several reports that coke and pepsi are looking at making an investment in chobani and cnbc is learning that cocacola is not actively looking at chobani as an investment and thats according to people familiar with the company. Shares higher than. 07 in terms of trade. To housing and the number of people applying for a mortgage tumbling. Diana olick with whats going on. Reporter all of this is due to the start of new regulations for lenders that went into effect october 3rd and had everyone worried so the big jump to get in before the deadline and then the big drop afterwards, but there is something more here. Break out applications to buy a home, they had surged 27 before the rules but fell 34 after and are now below last years levels for the First Time Since last february which was a very slow month for sales. Quick note though, the tenyear yield which rates followed and Mortgage Rates headed higher. The big stock stories of the year, walmart. Is it a Good Opportunity to buy the stock or should you stay away . Fellow dow member nike meeting with analysts today. Its stork up 30 this year and nikes ceo will join us live. You are watching cnbc, first in business worldwide. Bob dylan. To improve my language skills, ive read all of your lyrics. Youve read all of my lyrics . I can read 800 million pages per second. Thats fast. My Analysis Shows your major themes are that time passes. And love fades. That sounds about right. I have never known love. Maybe we should write a song together. I can sing. You can sing . Do be bop. Be bop do. Do be do be do. Do do do be do. [annouget up to 48 monthsy interestfree financing on tempurpedic. Save 300 on beautyrest and posturepedic. Or choose 300 in free gifts with stearns foster. The triple choice sale ends sunday at sleep train. We figure you probably dont have time to wait on hold. Thats why at xfinity were hard at work, building new apps like this one that lets you choose a time for us to call you. So instead of waiting on hold, well call you when things are just as wonderful. [phone ringing] but a little less crazy. Were doing everything we can to give you the best experience possible. Because we should fit into your life. Not the other way around. Welcome back to power lunch, everybody. Im mandy drury. Well, its been five months since moving into the Corner Office of allianz. 85 million customers and 147,000 employees. They are also the parent to pimco. He joins us now in a power lunch exclusive. A pleasure to have you here. Thanks for having me. Lets address the elephant in the room and thats bill gross their 100 million potentially plus lawsuit against pimco. Does this lawsuit have merit . No, it doesnt. As you can imagine im not allowed to comment in detail on the pending lawsuit that we feel is without any merit and the more important thing it dilutes the fact that pimco has done really, really well last year since hes left, and hes spending all its time on serving clients and thats what we should talk about. But is it possible that perhaps maybe the culture at pimco needs to be revamped. Is there anything that you would change . I think its always different in culture when you have a company when after the compared to the time after the founders left so certainly things will change and if they are becoming more of an institution over time then culture will adapt but i dont think theres anything that has to change at pimco it. Lee involve now that were beyond the time of a founder of that institution and i think they are doing all the right things at moment and thats focusing on client and performance and nothing else. Pimcos performance and its funds have held up, you say its even improved and the company has lost assets, and thats a loss thats affected your Asset Management business. I know ceos dont live in retrospect. Yes. But in retrospect, do you risch that you, allianz an pimco, had been able to work it out so that bill gross could have stayed at company, or did he have to go in. Its always an if, if, if and i was not involved at the time so thats not an evasive answer. I dont want to spend time on history but spend time on framgt future and delivering growth to our company. So let me then turn the conversation this way. Pimco is a big part of your Asset Management operation. Absolutely. The biggest by far, the fourth or fifth largest Asset Management division in the world butates Management Division for the first six months, profits down 20 from where they were. Yes. How much of that decline is directly attributable to the turmoil at pimco . How will you turn it around and p. E. T. Pimco, and will you ever consider selling . So many questions. You can handle it. Absolutely no way would we sell pimco. Get this question all the time from speculators. It has been a fantastic part of allianz over the last ten years. Since we acquired it the company has grown 20 compound both in terms of assets and earnings. Its been a spectacularly positive story for us and it will continue. Actually the outflows and the performance issues started when mr. Bernanke whispered the word taper. That was long before we had the personality issues and that gets often confused in markets. Investors are thinking about how they invest in fixed equities and other Asset Classes and if you imagine a rise in Interest Rates and the sore of the traditional products become less effective thats just a fact we have to deal in. Thats why pimco is focusing on income products and alternatives and they are doing really well so despite outflows we see from the core products, we see inflows in the future growth platforms and thats giving me a lot of confidence that at some point, sooner or later well turn things on flow and earnings. Yes, please. If i may just follow up. Cutting people and cutting costs, we really want to focus the team and the team wanted to focus on Service Clients and really driving performance, and when the time is right well adjust to the different operating environment. A question on acquisitions moving away from all of that. Theres been quite a lot of m a and deal making going on, lots of activity here in the u. S. , Health Insurance sector in particular. Any acquisitions on the horizon for you, allianz in. We always look for investments and if an attractive opportunity arrives well go for us. You can tell us, we wont tell anybody. Of course you wont. Were very disciplined in terms of what were looking at, particularly in the property and casualty industry, and the second thing is we look on to acquisitions that really happen into markets where already we have a strong position, where we have a Strong Management Team that can manage intergrags and we try to make sure to overpaying and some of the tells weve seen recently wouldnt meet the criteria i know you have a question but as a further on my question, geographically is there an area of the world youre interested in. Its an ambidextrous strategy. Looking to grow in the markets and also in europe where theres a lot of room for consolidation and for the last five years weve done many more bold acquisitions and right now were the Market Leader in turkey, a country with as many people as we have in germany. By the way with the same market share in turkey as in germany. Let me get a question in as an observers of the global and germanys economy. Whats been going on at volkswagen, how damaged is that brand and has this trickled over and affected germans . The second question i dont think so. I think that thats an isolated case and i would see it because germany has a great each utation in terms of corporate governance. We have a great reputation for high quality product and have a great reputation to take care of our clients so i would call this an extraordinary event in many ways but also the good sense that i dont think that you have to worry about made in germany at all. Now, obviously we dont like what we see and we hope it gets fixed very, very quickly because people think about us as being part of the community and ill tell you the Business Community didnt like what it was seeing. Okay. Thank you you so much for being with us. Thank you very much. Thank you very much. Naoki meeting with analysts said, its stock up 30 this year. How does the athletic giant plan to just keeping doing it . Nikes ceo will join us in just a little bit. Where. Its been smashed, dropped and driven. Its perceptive enough to detect other vehicles on the road. Its been shaken, rattled and pummeled. Its innovative enough to brake by itself, park itself and help you steer. Its been in the rain. The cold. And dragged through the mud. Introducing the allnew mercedesbenz gle. Its where brains meet brawn. A 401 k is the most sound way to go. Lets talk asset allocation. Sure. You seem knowledgeable, professional. Would you trust me as your Financial Advisor . I would. I would indeed. Well, lets be clear here. Im actually a dj. [ dance music plays ] [laughs] no way i have no Financial Experience at all. That really is you . If theyre not a cfp pro, you just dont know. Find a certified Financial Planner professional whos thoroughly vetted at letsmakeaplan. Org. Cfp work with the highest standard. Awe believe active management can protect capital long term. Active management can tap global insights. Active management can take calculated risks. Active management can seek to outperform. Because active Investment Management isnt reactive. Its active. Thats the power of active management. Welcome back to power lunch, everybody. Im mandy drury. Its now time for the power pitch with two entrepreneurs who have only 60 seconds to try to convince a panel of experts that their business has what it takes to make a big swing for tennis lovers. Lets listen in. Hi. Im lavie. And im sergei feingold. 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