tv Closing Bell CNBC November 7, 2018 3:00pm-5:00pm EST
pushing it we see all of this going on with harvard right now. an incredible rise and fall far man highly esteemed by the president because of the mueller investigation has fallen so dramatically >> thank you for your investigation. thank you all. we leave this hour a couple of points session highs closing bell starts right now. >> thank you very much for that it is attorney jeff sessions has resigned we have john harwood, libby cantrell and amon james here >> that's right. saying he is resigning at the president's request. that indicates that jeff sessions has in fact been forced out as the attorney general of the united states.
the president was asked whether jeff sessions had job security and notably declined to answer that question. the fate of rosen stein is one of the big questions going into the rest of thisafternoon. the question is who was running the investigation. >> it is from the department of justice and what the fate of that investigation may be. the president never clicked with jeff sessions after that session's recusal. the president has politically humiliated jeff sessions just a
day now after the midterm elections. >> just want to reintroduce the team, all of the election teem back at hq >> was it already priced in from the point of views coming fairly quickly as a result? >> i think it was widely expected this change would take place. it has been telegraphed by several including lindsay gram there has always been the question of if the president intended to do this why doesn't he do it there is potential for political backlash now, he is doing it immediately after the election as democrats are preparing to take corral of
>> what are you going tell us about sessions resigning >> i think that this was very telegraphed. i don't think that the market looks at a lot of things that jeff sessions was doing as very market moving. we wrote about this yesterday. we wrote about this today. the most likely first pivot post this election was a resignation or firing of jeff sessions we'll have a lot of volatility here over the next couple months the thing i would try to draw it back to is china trade trump has a history of when there's a series of negative headlines to try to change the subject. the one subject he could absolutely change the press narrative on is doubling down on china and so those are the number one and number two risks that we see out here between now and the end of the year.
>> lib by is here with us we were on a conference call and said this is absolutely a possibilities. i think timing is a little bit curious though because look, democrats in the house especially want to see if they can deliver something edge legislatively. if we are launching into investigations which this could lead to when new congress comes into session next january then any sort of attempt or effort from infrastructure could be thit >> when does it become a market event? >> i think that's a good question i think there was some optimism we could see some sort of fiscal
stimy stimulus i'm surprised that the market is not responding to that more right now. this unfortunately -- and you never know with this president but again, i think this slows that progress. >> the opening line we should also point out of his letter was at your request i'm submitting your resignation on top of that we understand that it was delivered to the president this morning he could have addressed it in the 90 minute press conference but chose not to what do you make of that >> mystery to me as to why he waited but clearly at your request i'm submitting my resignation makes it clear that the president wanted him out i'm also curious what does it mean for immigration policy?
jeff sessions, the reason he was part of the trump administration is because the two saw eye to eye on administration issues is it going to change at this point because jeff sessions is gone probably not one of the supporters of where it was going was this man here besides some of the aids we see frequently about it was the other issue that again, we focused so much on mueller. there were others that jeff sessions was involved with >> why do you think the market is rallying so strongly right now? do you think it's a relief after the uncertainty or is there some specific policy that investors are rallying off of? >> i do think it is the relief i think it is specifically tied to the senate. the senate where republicans have expanded their majority you're going to have a continuation of the deregulatory
agenda confirmations are simple majority votes there was a lot about certain confirmation processes a lot of that is going to be gone when you look ahead even to the to 20 electi 2020 election you do the math and say it is almost impossible so the stickiness of trump policies today are much more cemented than they were yesterday. it is something they were truly fearing with the rise of the progressive left especially in purple states. >> do you agree with that? we have seen the dollar soften today. >> we would absolutely agree with that. there is a relief rally. there is things that have been driving this, the tax law, deregulation efforts, those things stay in place however we would also argue that the risks before the election in
terms of trade policy, those things are, those things still exist. those were independent yesterday. i think what we are seeing yesterday is a relief rally. they will stay in place and the majority are even stronger >> really strong rally all sectors are higher do you have an update? >> yeah. this is the president of the united states. as you guys have been pointing out the first three words of the letter are at your request i am submitting my resignation. making it very clear here that this is a request to resign coming directly from the president. i would note here what's messing from the top of this letter here where you would normally have the date there's just a blank space here this letter is undated it is not clear when he wrote it and handed it to the white
house, not clear how long it has been in the works. we'll try to do more and tell you when jeff segssions wrote this letter. it could be that the white house is holding this letter to the point of which they want to release it at the president's convenience. i should say we are getting our first reaction from capitol hill the democratic leader saying the timing isvery suspect and shumer also saying any new attorney general nominee must not interfere with the mueller probe. but the new attorney general will have a wide discretion in terms of dealing with that mueller probe. the new acting attorney general would have the ability to fire mueller for cause under procedures that are in place
now. he would have to determine mueller had done something inappropriate or wrong here. we'll see where it all goes in coming days. we'll have to get clarity on when he resigned as attorney general. >> hey, guys >> one second. he is in washington for us in terms of the reaction we just had there but what is the process from here in terms of seeing a permanent replacement how long and how quickly is it likely for us to see a permanent replacement named and confirmed? >> this is something that the senate will have to take up. he said today that a lot of the senate's time will be spent on nominations. we thought he was referring to judicial nominations but also it would be on the docket as well we also have kmencomments now sn he was commit today the rule of
law. notable what is not mentioned in the statement which is of course the mueller information. i thought it was also interesting that president trump's tweets included the phrase we wish him well. this is a president who clearly values loyalty you saw it in the press conference today he basically kicked the republicans who lost while they were down saying they lost because they didn't embrace trump and that is something that jeff sessions had not fully done either because of the rocky relationship now you're seeing jeff sessions step down, president trump now saying, again, we wish him well but he did not have the loyalty and trust that the president had wanted >> final ward ord to you >> the point is matt whittaker has written about a scenario which the mueller investigation
would be starved of resources. not fired but as an alternative firing him and wind down the money for his office and cause his probe to end that way. i would like to ask our market guests, if you take it to the next logical step that the president does decide to direct him to fire bob mueller, what would the reaction be? >> i think it would be very negative i don't think that longer term, you know, one of the things we see with the trump administration is something that seems like the biggest thing today because trump goes from, you know, kind of crisis to crisis to crisis we generally move on and what the market will look at is the agenda coming out of the senate and what could happen legislatively out of the house. when you look at it there they don't come easily but anything that is potentially on that list is more fiscal stimulus.
>> guys already though an antagonistic between the president. a new tweet now from jerry who is likely the next house judiciary saying that americans must have answers immediately as to the reasoning behind president trump's removal of jeff sessions. why is the president making this change and who has authority over the mueller investigation they will be holding people accountable. >> the market doesn't seem to mind >> we will leave that opening exchange there thank you to everybody thank you very much. libby will stay with us and take part in the closing bell exchange today it includes rick good afternoon to you all. kenny, lots of different points of view there in terms of sessions resignation >> the market is up since that
announcement came out. i don't think the market is so concerned. we talked about it, right? you have been living under a rock if you think this wasn't coming i'm not really sure what the letter with no date really means. who cares if he wrote it last week, last month we knew he was out now the question is who is in his place and what are the democrats going to do or say about the timing of this removal? you know, they will start the investigation. there would be plenty of investigation. >> so they are really cheering the end of the midterm elections, the results, i'm wondering, i wanted to ask you, if you could make sense what we are seeing in the bond market and extrapolate anything as the conclusion and any sort of
fiscal policy or pricing that out perhaps. >> right now we are up and we are oun changed in 5s and down two in 10s the dow is down. just by looking at those markets i can't draw any conclusions regarding anything about the election, but having said that what we can draw a conclusion of is that those markets aren't really bothered by the results they don't see the results upsetting the status quo in any significant way. i can't remember what guest pointed out anybody that was watching last night with every little headline on what was happening with regard to the returns i would think it would be overwhelmingly provable that the better showing in the senate is a big part of the catalyst of what's going on with equities. as far as sessions and all of that, listen, i love to read
aboutpolitics. i think it's interesting but i think that i have very rarely heard segtss is a variable around water cooler in any trading room >> david, was the market due far bounce or are the midterms a justifiable reason nar bounce? >> i think that's one of the reasons. i think one of the other elements, what's been concerning the markets is that inflation is picking up to the extent there was a possibility of more fiscal stimulus i think the markets would have been some what concerned if the outcome happened and it would have tilted it more towards being more hawkish to try to enter those. i think we are see ago little bit of a relief that it is given where we are you know, now we have certainty. as we all know markets don't like uncertainty i think that's a little bit as
well you're seeing the growth stocks are the ones bouncing the most they have been hit the most in the selloff. it could have a little bit of a short covering types of trading at this point. >> do you see any implications on the fed whether it is the president bashing for moves too fast on rate hikes >> i'm a little bit confused that republicans would have driven through big fiscal stimulus they are the party of, you know, fiscal moderation. i think if we had seen democratic swe democratic sweep it would have ban much higher. given what's happening with jeff sessions we'll launch in for a closing upon any opportunity for infrastructure i don't think it does to answer your question. i don't think it really does effect or inform the feds you hear i think they probably will have to hike in december and then the view is that they will probably
hike two times in 2019 and it will be close tore neutral remember if barring any additional stimulus is likely to decline in 2019. you add to that ahead wind to growth and 2019 could see a very different picture here >> so no infrastructure either >> no. i may have been the only person that was naive enough to be hopeful. i think they wanted to find commonality. infrastructure was one of those issues i think the infrastructure is probably off the table because it makes it much more difficult to work on a bipart son basis. >> do you have any recommendations? some people are looking at health care stocks and potentially bio tech stocks. if they are not able to pass legislation who wins >> we haven't changed any of our
preferences. we still like energy and financials our most fives ares, it really comes down to evaluations are extremely attractive for both of those sectors. i think what's been priced in is we will see an eminent end i think this expansion has more legs and especially if we see stability in overseas markets. we think we'll see that as well as try to ramp up stimulus it is in a better situation. evaluations look quite attractive in our view so they have go two years to try to do this
it could be a watershed moment for the industry not only for these companies but u.s. companies as well. sessions again was a huge roadblock when it came to federal legalization efforts and covering this industry i can tell you in talking to so many people in this industry from ceo levels they tell me he was a huge roadblock in this industry. i have reached out to a number of companies at four reaction and as soon as we get that reaction we'll bring it to you >> is there also a feeling there could be progress after what we saw locally in yesterday's big term elections >> absolutely. >> yeah. >> that's right. we saw that and not only that but there were key wins congressionally as well. another one, he blocked dozens of cannabisbills they see that as a key win in trying to get some of the stalled legislation through congress
one of the key measures there by the way that's being debated is it leaves legalization up and respects states that have already legalized marijuana. it is still a long shot. we have the senate being republican but certainly some of those roadblocks have been lifted with both segtssions out now. >> thanks very much. we should also point out jim cramer saying you couldn't be any worse on the topic of cannabis >> it's like constellation plans. still ahead here we'll hit all sides of the big market rally on the back of the midterms we will get into why the oil stocks are rocketing following the results of a key colorado ballot proposal. nasdaq surging today we'll take a look at how newly elected
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microsoft continues a run up 3.8% >> nasdaq up 2.4%. oil stocks getting a big boost as well following the result of a key ballot proposal in colorado we have the story back at headquarters >> that's right. we have been focusing so much ton federal elections that the state ones have maybe got an little bit lost in the mix here. pot stocks not just because of jeff sessions but take a look at these names as well. we are seeing a colorado proposition 112 it was a proposition on their ballot that
would prohibit certain energy companies from drilling within a half mile of any population. it would have cut the oil and gas by year 2023 colorado was the fist biggest in the united states. that's the reason why it matters. after voters rejected this proposal we saw these names go up higher. a lot of drillers within colorado but also check these out. dcp midstream up around 5.5 as well if you're looking for some of the longer term view remember even with these gains we are seeing oil and gas exploration and production companies also catch a bid you can see from a two day basis well off of the highest levels we have seen so far. oil prices certainly a focus not just on the global station but here in the u.s. as well
guys, overall the reason why these stocks are on the move is because they are u.s. producers and one piece of state legislation driving the whole thing. back over to you also the president said in his news conference today that he wanted to see prices of oil lower and that the reason he granted exemptions for the iran sanctions is because of that i wonder if it's having an impact >> it is having an impact. the interesting part is that the u.s. right now and has been far while a wash with oil supply it should put pressure on gasoline prices. good for the consumer overall. when what it comes down to is whether lower gasoline prices benefit the country as a whole or how many jobs you can create in the oil and gas midstream, oil services operation, if they create that many more jobs there
will be a ball lons point. i know in places like colorado, wyoming and other regions the jobs associated with oil and gas business matter a lot to those people out there an interesting development but we'll see if it places out in western texas or maybe in ohio and pennsylvania, west virginia, it will be big as well >> thanks very much. we should mention down nearly a percent today. >> voters in tuesday east midterm elections singled out health care as the issue that mattered most. it is one of the best performing ones today potentially cracking down on drug pricing if you're looking far place of common ground you can look at cracking down on drug pricing. republicans want to do it. does it necessarily mean
anything will get done >> yeah. that's why the stocks are ripping today. you have what is perceived to be gridlock >> they are ripping because they don't think anything -- >> even though democrats and republicans agree. >> i think what's happening is you have two sides that agree. drug pricing has to come down. that's a given how it is going to come down, whether the left goes out with a powerful message or right goes out with a powerful message i think the fact that there's a split congress means potentially slowing together >> do you agree with that view >> some what i would say investors like certainty and essentially we went into the election thinking that the house would flip, the senate would likely remain gop in some way and add a few seats. that's really what we have what have we got
obamacare is the law of the land four states decided to expand medicaid under this administration i think with drug pricing though it's a little bit of a different beast. yes. there's an area of overlap with the president and democrats on wanting to lower drug prices the democrats want to do something a little more i would say versus this republican administration at the end of the day i think we'll see a lot more regulations which is what they have already been doing i think we'll maybe see a couple of bills squeak through but nothing as dramatic as some of these other policies that we have heard >> do you expect we'll see more regulation on the health care front in general
>> yeah. i think it's very clear when politicians want to continue to improve the way health care improved in the country. the primary point i think democrats and republicans are both making and they have for years is the inequity of drug pricing. it is probably first and foremost insurance companies are fairing
better than others are today >> thank you both very much. time now for cnbc news update >> hello here is what's happening at this hour everyone. president trump as we have been telling you announcings via twitter jeff sessions has resigned at his request. he will be replaced by chief of staff. trump saying a permanent replacement will be named at a later date the apparent winner in his battle for a third term in the senate president trump took a personal interest in ousting tester making four visits to montana to boost republican matt rosendale. >> it was a tough race it was a race that broke records. i believe when it's all said and done and the number of people that voted in our great state and amount of money spent in
this race. >> a jury has been picked for the trial of mexican drug lord el chappo. the trial set to begin november 13th with opening statements the jurors names have been kept anonymous for security reasons you're up to date. i will send it back downtown to you. >> thank you very much for that. now, back to the markets all three up 2% or more. that's 541 points. let's send it over now for what's driving the big rally >> the dow jones up about 2% breaking above 26,000. it is a level it hasn't traded at in over a month the dow is up 5% in the lows it hit on october 29th. the s&p, traders saying they are ignoring the drama out of washington and focused on the bipartisan cooperation
let's take a look at some of the major sectors that are pushing this market higher health care, consumer discretionary but back to health care, it is worth noting that aetna, all of those stocks are trading at fresh record highs as they improve the expansion of medicare some movers coming off of the election overnight >> quite a celebration in the markets. best post election day rally in 1982 so 2% gains across the board >> sure decent rallies yesterday as well. it has been a solid week so far. >> the rebound starting from the end of october, bargain hunting and a broad based rally. technology has lagged. that's what's interesting about the fperformance. session highs we are looking at the dow up more than 500 points.
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here is a look at which stocks are leading us higher >> this is the large caps driving us higher. nasdaq is up nearly 3% technology is definitely where you're seeing a big relief rally. they are hoping it will be good for regulation or the lack of regulation interestingly we are seeing that move above the 100 day moving
average. strong gains and what's interesting is that facebook is one of the names that is sitting out that rally it is under performer today. people feel there is bipartisan ship when it comes to concerns about privacy and social media it is also when it comes to drug prices health care today has been on fire folks were better that the risk for bipartisan ship not so likely back to you. >> thank you very much for that. mike has come to join us onset >> you know it's a big market day when it comes 15 minutes before the close >> yeah. >> it will slide down the poll
there is tech, discretionary >> it is the growth stocks that got the market through the highs in september they had the most significant discount i think what we are seeing is a rebuilding it started a week ago tuesday. essentially the market built a cushion. it feels safe with the distraction and possibility it would be an up expected result over the course of the day no doubt about it you had money which reduced the exposure so clearly it is a dynamic >> does the reaction today suggest that there was a bet or the risk in the market that the democrats were going to sweep? >> i think there was in the sense of we just don't know. i think there's been a little bit in trusting the polls.
i think post 2016 election you want to stay to the sidelines and not be sure you have it figured out beforehand >> during the october pull back we always said it's not pull back >> i don't think you're wrong with that. i think it presented another reason to wait once we had that pull back and once yields stopped going up at a 25% clip i just feel like a lot of the violent repositioning that happened got cleaned out so it looks like it could be a bottom that we put in. >> so to his point it's not like we have any major resolution the fed and the trade. >> exactly right i think those are the kinds of things that could come to the
floor if we get to this level a little bit higher in the market and then it suddenly seems like those were the familiar stumbling blocks we don't know it will be that way but that's the next ledge k -- logical place to stop. >> let's dive into the sector performance today. it is the best performing sector we have all of the break down of that today >> all right so the best performing group in the s and p in this big rally has been the state of consumer it is surging by about nearly 3% into the close it is pairing some of the losses that we have seen. among those names you have hilton and harley-davidson and home depot as well far and away the best has been amazon.com, the biggest one out there. that is up more than 6% on pace
since mid-october. the markets having their best one day reaction since 1982 and the consumer is right at the front of it. back over to you guys. >> all right thank you very much. that is a strong move for amazon it is up 6.5%. >> and with this it is still $300 off its high. when you have the psychology it's like okay maybe great companies that are trading 15% below their highs
session. >> you have people not necessarily enticed. >> we have ten minutes left of trade. we are very close to session highs. over 500 points in gains for the dow. will it help this rally roll on we'll preview the things to watch for. long with us here on the csi bell yes or no? do you want the same tools and seamless experience across web and tablet? do you want $4.95 commissions for stocks, $0.50 options contracts? $1.50 futures contracts? what about a dedicated service team of trading specialists? did you say yes? good, then it's time for power e*trade. the platform, price and service that gives you the edge you need. looks like we have a couple seconds left. let's do some card twirling twirling cards e*trade. the original place to invest online.
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see the grinch in theaters by saying "get grinch tickets" into your xfinity x1 voice remote. a guy just dropped this off. he-he-he-he. vlgs all s & p 500s are higher this is up 3%. technology health care also leading the charge the nasdaq gaining almost 2.5% right now. investors are getting set to digest after the bell as well. waiting on square. brewer watching this what do you expect >> expected to report 5.5 billion in sales 83 cents per share in earnings the main thing to listen for has
nothing to do with the operation. it is the continuing loyalty dispute with apple there's no settlement talks ongoing. they have argued apple owes billions of dollars in back loyalty. probably not as much as this royalty question >> the number one things is reassurance. shares have more than doubled this year. it is due to concerns about the capital risk and questions about who takes over after cfo she has been credited with winning over wall street she is also the right hand woman as he runs square and twitter.
it continues to attract larger sellers. >> square shares surging up into the close. let's get a preview of resorts now. >> it is takes mass market share from m gm. second the uncertainty and today phil a widely respected replacing this it is highlighting in the bid to keep the license third the plan for las vegas will it significantly scale back development focusing investment on convention space and room towers and less on 2 flashy water park lagoon? >> we'll watch that. thank you. thanks to all of the reporters as we await the earnings over to you ton floor.
>> thanks very much for that we have about four and a half minutes or so. matt joins me with his take. the size of the rally today, does it surprise you we kind of have an expected result >> yeah. we had technical moves today the market was deeply oversold we are seeing an explosive and broad based rally. >> it is the higher of likes and health care. does it suggest it is rather than the midterms? >> we didn't expect financials to do as well as they are doing but they are strong. >> but it is towards the bottom. >> certainly on that >> so there is plenty of upside. i think as we go forward it is for the strong end of 2018 2019 when we get confirmation of who is in charge you might see a little bit of a selloff on that
kind of news >> it is the biggest wild card risks and do you think it alters the outcome at all >> there is a possibility of coming to a solution on trade. you can say listen, what the u.s. listens is this it could be a positive we are talking about less gridlock it has a split house and senate. >> what about the jeff sessions news is that what you would expect from this or if we did try to see impeachment retaliation, that sort of thing >> the market did take off to new highs. it did shrug it off. so it was a bit surprising from our end but probably not surprising from the d.c. end of it >> you set up for a rally. how much did the s&p go up towards the end of the year? >> we have gotten through
earnings season. those were focus points we were looking at we were deeply oversold. you want to build your portfolio. >> thank you let's dive in. it tells a very positive picture. it dipped fractionally for the first couple of minutes of trade. momentum building throughout the day. we are right now the session high as we approach the close. 554 points for the dow more than 2% of gains for the nasdaq the nasdaq does lead the charge for those major indexes. the russell a nice return there. it is shy for a couple of percent. as we look at the sector there with both matt and mike it is the names, the ones that pulled
back the most in october that rallied health care and consumer discretionary up more than 2%. also seeing communication services it is up 2% itself the more boring names and real estate utilities but every one of those in the green. only two sectors will end in correction territory from the we recent highs those are materials and energy it quickly rounded things off. we have oil which is off a little bit and dollar which is also off a little bit. >> what a big comeback the dow is not only 3 away but you have seen it being a wide based rebound. it is the only two in correction territory. we have trip adviser which is one of the best performing stocks it is up 70% in 2018 so earns held the stock and continued to move higher or give them a reason to leave tomorrow on the housing front we
have d.r.horton. it will be a big topic >> no rate hike expected one expected for next month. here is the big board. we are up 542 points on the dow at the close that does it for the first hour of closing bell. back to you. a very strong session for stocks today welcome everyone to the closing bell i'm here with mike, cnbc senior markets can commentator.
there. >> leading the dow is caterpillar. mike, you surprised at the magnitude of this? >> yes i'm surprised at the velocity of it it closed a it the level people thought was a little bit of a test 2 clearly the process kind of repair tod repaired to the market the election was an excuse for people to stay more defensive and then you had a big rush to the markets. i don't think it is a now it's safe and now it's back to new highs in a hurry the market didn't see a lot of change in the economic picture or overall picture that would account for the 9% haircut in october. so i think the fourth quarter script is a little too easy right now. it is right at these levels that
would create a pause at that point. you to respect the market action markets tend to rally. is this representative of those sorts of cases since that? it feels like there's a lot more contention in the air than in a normal situation >> i think those a statistics looking for a story. let's talk about the story that's the statistics show now we are close to the promise land at least in terms of the economy. oil prices are coming down gdp growth is good inflation is obviously trending a bit higher relatively under control fed managed to get interest rates to a relatively base of normal, whatever we consider that in 2018 we are in a really sweet spot. >> what about that freak out in
october about peak earnings and a trade war and all of those worries? >> those are relevant concerns when you look at the statistics you have to feel pretty confident. you can talk about trading multils but things are pretty good >> that's all true it was true on september 20th. it was 5% what it was right now >> sit a stop along the way. it is an excuse to have a little
bit of a pause in the market >> it is kind of fiscal discipline by default. guess what at the time nobody said gridlock was great. i think that's little overthinking >> and everything i just said is the federal budget deficit we are not talking about that. republicans won't talk about it. republicans, sort of the parties are clipped. but that to me is sort of long term the issue of the
discussion >> you might call it a sugar high if you look at productivity numbers it doesn't add up. >> does it not hurt the equity market at some point next year >> i think it is probably a fair conclusion relative to everything else is the question where else do you want to put your money >> sectors are giving you better earnings growth. right now the consensus is something like slowing to 5% profit growth. it will create a little bit of friction there depending on what levels you are at. i think that's kind of tomorrow's business.
>> it is no sort of hurries regulations that could jolt companies or sectors >> i'll give you another jolt. that is somewhere along the line there is a surprise announcement u.s. and china have an agreement and i think it will certainly move the market. >> it is a tremendous spread between what people think and that possibility >> right >> some people saying that trump would have a harder line before getting to that point in negotiation. i don't think it's a good way to handicap it. that possibility is out there. >> i always viewed it as a negotiation. it leads to ideal of some sort >> the former attorney general under george wfrmt bush. mr. attorney general, what do
you see as the biggest impact from segs resignation at the request of the president >> well, i'm sure everyone is speculating the first step in the process of perhaps ending the mueller investigation. i think jeff sessions carried out the president's policy that he campaigned on promising the american people yet on the other hand when do you so understanding that you voted the president and when the president has in your service then you leave. that's apparently what happened today. >> what do you think of the timing so soon after the midterms >> it was already of course as you know speculation about jeff sessions tenure. i think there was even a comment maybe from the president or chief of staff nothing would
happen we make the decision as to when -- if to make a change. i think there was a calculation made that it would make the change i feel for jeff sessions it is a very prestige use position obviously i think he did a pretty good job. >> so what happens now matt whittaker is going to come in until president trump names his replacement. he could fire mueller and get rid of the probe couldn't he is that likely >> he could.
i'm some what surprised given all of the responsibilities that the attorney general had to discharge. i don't know much about his acting experience but you want to have someone who is wise and has great experience we'll have to wait and see. he has written something recently about the mueller investigation. we'll have to wait and see what is going happen. >> what would be the reaction on capitol hill if something like that happened? you know, john harwood mentioned the project of a constitutional crisis how far does this go
>> i'm not sure it is a constitutional crisis. you may have a political practice it is only if the senate can use it as a political as well. in the end, you know, the house can only do so much. as to whether or not it is a misdemeanor who knows but i think we are a long way away i hope the congress pays attention. it really pains me the thought that the department is, you know, under speculation or concern or worry about the ongoing work that the men and women go to work to serve the american people. >> thank you very much for joining us much appreciated
we will talk more about the impact in a moment hey john >> yeah. >> qualcomm turning in revenues of 5.8 billion it versus 83 cents expected. so it is 90 versus 83. on the guide, the guiding tour range of 4.5 to $5.3 billion that we are currently in, the mid-toint on that. the eps guide is higher that kpped. they were looking for 95 cents they got it between $1.05 and
$1.15. it is between 175 and 195 million there. for the next quarter investors will want to pay attention they are axel brit or before on what it means for how this guy looks. the stock is dounl. >> it is a slower mover of the chip industry. with stock so far off its highs it makes sense to sench inch ita
little bit we have numbers that are out >> the stock is falling about 4% in the after hours it may have something to do with eps guidance let me go through the top line numbers. this is 2 cents above what it was expecting. guidance for the fourth quarter way below analysts were expecting. it is 13 to 17 cents the company says it is due to convertible note offering that it will have to settle with crash. keep in niepd it will happen it is a little above expectations bitcoin, interest continues to grow it was 43 million versus 38
million. earnings happens at 5:00 p.m. eastern. it will be the last earnings call the stock if you remember in october fell quite steeply she is much beloved on wall street they will want to know who takes over for her stock is down 5.5%, guys >> thanks very much for that. sit expensive as well. we'll dive into that another earnings report, trip adviser has those numbers for
us >> take a look a dramatic move. as much as 10% after hours a monster beat ton bottom line 72 cents adjusted. wall street looking for 48 cents. it is a slight miss. earnings growth being driven by the nonhotel revenue segment it gained 20%. it includes experiences, restaurants. on the flip side it is hotel revenue. it is interesting given that we have weak results. have to wonder whether it speaks to the weakness we are seeing broadly. total revenue up 4%. conference call is a little bit. it has been prioritizing user based growth with investments in brand advertising
>> back to you >> it has ban particular winner even in that category. >> it has taken so much. >> yeah. >> okay. >> but marriott not so much. >> yeah. it seems like a bit of a give and take between the hotel operator and the booking doors >> yeah. >> and the ipo in 2019 >> we will roku is also out with earnings hi leslie. >> yes roku falling despite on the top and bottom line. the reason is down about 11.5% it is largely thanks to a miss on the platform revenue line item on total revenues they beat estimates 173 million versus 169
million. ton bottom line they beat by about 3 cents. analysts were expecting about 12 cents per share. on that platform revenue they reported $100 million that compared with about 3 million more than analysts were expecting. platform expects about 58% of the company. it is becoming an increasingly bigger piece of their revenue break down remember, this is a stock that's tripled over the last year it tripled over the last year as investors got connected about tv advertising, ott we'll be listens for more on the call today at 5:00 p.m back to you. >> thanks very much. we'll be listening for more tomorrow when the roku ceo will join the team. you don't want to miss that. >> how do you trade this stock >> you have to be prepared for
the wide swings. talking about $3 million it is a $6.2 billion company it is based ton idea that it will be so tremendous. it will have a lasting role. it is not necessarily priced to deal with, you know, fundamental disappointment along the way >> again, always amazes many we that it has gotten to 6 billion. >> yeah. >> so just to wrap it all up we talked about a lot we just got earnings on today's broad strong powerful rally do you see it as a response to the midterms that can carry us more than one day >> we have been swinging back and forth for the last few weeks here from my perspective that people
have about the core questions about whether the tax benefits through 2018 can really sort of be picked up by earnings growth and better performance >> quick expectations. do you think they continue on that path in december? >> it is a fair expectation. it is certainly a concern and i think it sounds about right. >> we didn't really mention this we talked about sessions resigning at the request of the president. you think there was a market move higher off that just on the prospect that maybe the next acting could fire mueller? >> clearly the news did not get in the way of the rally. >> the market carries higher after that there is a way to view it as potentially insulating the president. whether the republican control is of the senate and idea that
in fact maybe it could be minimized. i think the market doesn't want anything in this set up. they don't mind having a pet that cares if the stock market is up or down. i don't think it was a reason. i don't think it got in the way of this. >> clearly not >> a clear constitutional process. i think the market would love that >> okay. we'll leave it there thank you very much. >> thank you >> great too see you as always coming up more earnings, shares of square trading higher. significantly lower after reporting their earnings and stocks have not fallen in the calendar year since 1946. look at what needs to be done to maintain the winning ways this time around coming up. we want to hear from you reach out to the show on maitter, facebook or send us an
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numbers. >> take 2 reporting of 22 cents this was at 550 million. the street had been halted there. stock had been halted there and should reopen soon it had modelled 1.35 billion talking about the redemption 2 it sold in more units in the first eight days as of today they say it sold in over 17 million units worldwide. back to you. >> thanks very much for that up and moving the opposite direction. shares are down about 5% lisa is joining us what's your take on these numbers? >> hey, look, so it's a beat across the board it is a beat on top eric pps
it is probably because the core business numbers are a little bit light. transactions came in slightly light. they dipped at about 28% growth. similarly the core volume number is just a hair light so investors are mildly concerned about a slow down in the core business. >> clearly it is pretty expensive. can it grow into that evaluation as ors are trying to pull consumer business for example? >> yeah. it can that's what investors are betting on building out consumer business they are starting to monotize that but i think we'll be looking for new numbers on square cash on the conference call today they haven't released user numbers since earlier this year when they released about 7 million users. venmo estimated at about double
that they will be watching closely for the consumer side. >> why are you on neutral on this stock it is up 125%. >> yeah. no it's a tough one, definitely if you put evaluation aside it is rich even relative to the high flying caps like software companies it is at 70% premium but what gets us a little bit nervous about square is defense blt. there -- defense blt. it is on the low end also they are positioning in e-commerce they have been very very brick and mortar focused >> all right thank you for joining us >> thank you >> up 125% in the last 12 months the two day ned meeting kicked
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a miss on earnings per share coming in at $1.68 versus the $1.69. here is the thing it was really good very strong performance here i want today give you an example here compare it and we have seen the trend here continue with a very soft third dwarter for the las vegas casinos. we'll key an eye on it i want to hear what they have to say about the future in las vegas and the gaming license massachusetts. >> thank you very much the stocks very much flat after
hours. it is along with nobody is sure why it has been as weak as it has. >> i like the restaurants that win. >> and they have their own restaurants. they are not chains which is kind of unique nasdaq lead the way up 2.6 sectors like health care and consumer discretionary time for an update president trump holding an election day he hopes to work with democrats for the good of the country. >> hopefully we can all work tokt to continue delivering for
the american people including economic growth, infrastructure, lowering the cost of prescription drugs this is some of the thins democrats want to work on. i think we'll be able to do that >> nancy pelosi saying her party will strive for bipartisan ship when they take control next year she added they will not be a rubber stamp for president trump's initiatives. his attorney says he will appeal sentencing set for february 27th that's the news update this hour back downtown to you guys. >> all right thank you. federal reserve widely expected to hold rates steady unchanged. we have more on what the market
is predicts. >> yes it has been trending very much it is a beautiful looking chart. you probably buyit right now this market is suggesting it will methodically keep raidsing rates potentially three more times and get to somewhere around neutral i think the good news is usually if the two year note yield is still going up it implies that the bond market thinks the economy can handle it. it will not immediately have to turn around and start cuts rates too soon >> and in terms of the rhetoric we have got so far is they are even saying as things stand that we'll get one more hike this year next year we remain flexible
>> i think they are stated of three more hikes it is three out of eight live meetings next year i don't think the feds have any real reason to change its course >> the fact that the stock market has been okay with this expectation of higher rates unlike during the month of october -- >> it suggests >> it would suggest that yeah. the fed will interpret that as there was no reason to revisit it just yet. the numbers are not telling them to if they got disturbed, if it star today soar, any of those things it would change the story. >> thanks very much. >> that was a good one >> they always are >> not to say when he is not it's not good. you know what i mean >> he excels
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>> how are you doing >> they are basically in line with estimates for the top line and beat ton bottom line it is 2.86 billion it is where they expected them to be. it is 3 cents above what the street forecasted. it is up today it is the first time reporting since the merger since the legacy soft drink maker was finalized in july. since that time they paid off about $550 million worth of debt in the aftermath they lost deals to distribute to well selling water brand as well as body armor. during the conference call we'll have to listen and see how they plan to make up for the revenues and very interesting time for this company they also expect to save about $600 million over the next three years. back to you. >> there we go thanks very much
it is down 2.3%. jeff segssioned forced out we have the latest developments on that story. >> yeah. so much focus on that. the man who is now the acting attorney general of the united states who is he? what is he background? he is a more political figure than we have seen in recent years. he is somebody that ran for the united states senate back in 2014 he also wrote an op ed piece he urged them not to go too far in terms of the financial dealings it is to limit the scope of the investigation to the four corners appointing him special council. he has a very narrow view of what the special council
investigation needs to be does not want to see it expand beyond the initial mission here it is between the trump campaign and russia nancy pelosi after last night's midterm election issuing her statement on twitter today he must take immediate reaction and integrity of the investigation and follow the facts it is not likely that this incoming acting attorney general would recuse himself from the investigation. we are told by the department of justice that he does have a full authority over all matters at the department of justice. all matters clearly includes special council investigation. this is a move by president trump who is seen by some as a trump administration friend if
not loyalist inside the department of justice in the top job overseeing that russia investigation. democrats expressing some nervousness about that and hoping to limit whittaker's information. >> they haven't gone into congress and already, yeah we have this to deal with. >> yeah. >> head of policy research here. so dan, how are you translating this news of jeff sessions to investors? any market or policy implications >> i don't see any market or policy imply cases we have known for weeks jeff sessions would probably be outdoors in the campaign so my
sense is we have to wait and see. there is no whittake is going to witness this i would add that mueller has done a significant portion of his work at this point it's not that we are not going to see something even if they limit this special council mueller could release his findings outside that. it gives people something to talk about what we care about is earnings and interest rates and hold up it could impact different sectors. i think it's a much more different story for investors today. >> not to labor the point given what you just said he said any attempt by the president to interfere would be obstruction of justice
sit when trump fired comey he said trump already obstructed justice. i don't think he would get 57 votes for president being able to do something he has the constitutional authority to do he could fire anybody at any time if he wants to. your point is a good one the democrats will have a seat at the table now because they won the house of representatives. so what they say matters and they are going to have a lot more influence to have oversite over the president that's why when we were going in people said it is status quo it is never status quo now we'll start seeing it. a lot of it is headline risk unless you find something as part of the mueller investigation. >> if not status quo in the sense of headlines we will get and how we'll have to street them is it not a bit of a
stalemate policy wise? are we basically lead to expect there's not going to be much happening on the fiscal side >> let me give you a bit of a perspective on that. we have a series of must pass legislation that needs to ge down we need to do the debt ceiling we'll have to do a fiscal year 2020 budget. it will create a catalyst. we now have the votes to complete a farm bill republicans couldn't reach those agreements and in the second quarter of 2019 congress is going to be presented with the revise that they will vote on. in a certain sense the election has created this different equation of how issues are going to get resolved. democrats have to have a say in those issues >> i was going to say, the problem is what we are seeing right now, with the announcement of the resignation of sessions and how all of the democrats are already on high alert. we are also starting to hear
they want to subpoena his tax returns. you think in that kind of environment they are going to work with republicans on passing bipartisan legislation >> absolutely. it is important not to overthink this it is about timing we are going to have to pass a budget we will have to raise the debt ceiling. we are forced into that. at the end of the day democrats are going to have to bring results home so they can win reelection they won very tight races to take over the majority those members are going to need results. i think as you get into later 2019 when a number of those catalysts get presented you'll see them sit in a room it doesn't take away from your point that the first half, we'll kill each other. a lot of that doesn't really impact the investment. it is a lot of head it's line ne -- headline news out there. we'll be forced to work together
on some of these issues. >> thank you for joining us. >> agriculture and defense all of those sectors on those ideas. >> shares of qualcomm right now, trading is down 3% after reporting earnings earlier this hour we'll get new comments from ceo ahead of theonree ll xt cfencca takes more than just investment advice. from insurance to savings to retirement, it takes someone with experience and knowledge who can help me build a complete plan. brian, my certified financial planner™ professional, is committed to working in my best interest. i call it my "comfortable future plan," and it's all possible with a cfp® professional. find your certified financial planner™ professional at letsmakeaplan.org.
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if you're keeping score at home let's get a look at some of the big earnings reports qualcomm and square on the top and bottom missing roku reporting a beat on both top and bottom line, though not doing much to help the shares which are falling double digits. and there is more. news corp. earnings out. jowlia boorstin has the numbers. julia. >> sarah earnings beating expectations adjusted earnings beating for 17 cents versus estimates of 4 cents per various share. revenues beating estimates by a hair coming at 2.25 billion versus 2.54 billion looking at growth of course they point to the -- the fox tail consolidation. but they say the revenue and earnings growth refocusing digital developments and emphasize is on subscriptions as ad market evolves involves
strong pay digital subscriber petition "wall street journal" and australian times now accounting for more than half of the total subscriber base. the stock up about half a% back to you. >> julia thanks for that as you say up two thirds of a%. drilling down into call com the shares down lower yo-yoing since the report john fortt has a summariry after the call. >> it wasn't just the ceo. port kind of a part line call. i talked to don rosenberg. the president. mull moline comp talked hildeman hildeman, said the quarter was driven by strong business in china. 5 g is still important in 2009 they're on the doorstep of 5 g talking about apple and talks, the headline out that they haven't been talking recently, he said we have had talks in the
past i'm sure we'll have talks in the future this is getting settled one way or the other through litigation or settlement. as i guess we know don rosenberg, the general counsel talking about the summary judgment and standard essential patents where a federal judge said that qualcomm must license two competitors they completely disagree with the take but the final judgment won't happen until trial. qualcomm sticking to guns on that and christiane, talking about global markets, saying they see strength in china and also in india and better yet for them they see customers trading up to higher level devices while apple said that they saw flat sales in india. apparently that's not happening outside of apple's markets qualcomm feeling better about it, wilf. >> thanks very much for that down 3.5% at the moment for qualcomm wynn shares made a dramatic turn around after earng tell you why next
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welcome back wynn shares falling sharply during the conference call for the company and contessa brewer has the details why that happened. >> look we have the ceo mat mat oks saying they are looking at softness after golden week in mack awe the weekends have been sporadic. expecting a bit of softness in the premium in the vip slowdown. and they said that they are cautious moving forward, taking it day by day. then he brought that back to las vegas and said, most of the miss that they saw on casino revenues in third quarter had to do with bakaraa. he drawing the conclusion that there is something watching
agia cautious on bakaraa going forward. this is the premium end showing softness and there you see the results. the wynn resort shares down 12% in after hours trading pl. i'll jump back on the call now. >> contessa, the weakness. >> yeah. >> particularly vip in macau any link to the trade tensions >> he is not making that link specifically we heard him mirror what we heard from sheldon adelson in las vegas sands. they have concessions coming up in 2022. and both companies now i ha heart matt maddox saying they consider it this an amazing opportunity for investment he is talking about developing some 7 acres near macau palace, the wynn palace. the way they're going to have thousands more hotel rooms coming online. they are trying to demonstrate the commitment to macau to shore up concerns over that concession >> all right we'll let you get back to it
contessa thank you for the comments from asian demand for the stock, now falling double digits. a news alert here on parent comcast. alex-sharpleyen preying the story and brings more what have you found. >> there is a new box going to be launched by comcast our parent company largest u.s. cable company that will be marketed toward internet only subscience are scribers, allowing the customers to aggregate favorite streaming apps as long as they don't compete directly with comcast. netflix, amazon, youtube the same apps you can get if you are a comcast skper and do subscribe to video they're bumbled with the x 1 platform that comcast uses for video service. in product will be just for people that get broad band and don't subscribe to video and will help with the problem of how do you find all this stuff
out there that's on netflix and amazon and youtube is will aggregate it into one so broad band customers have have an easier time finding their content. and will it comes with a voice activated remote control comcast, i'm told, is trying to figure out the pricing of this product. but they feel like it will help the overall stickiness of broad band, which of course is a great high margin product for the company. >> and alex, interesting timing on this given the sky acquisition done recently. you mentioned the x 1 platform has this been in development with them for a long time or is it exporting the technology that sky has? because in offering existed in the uk already. >> i think it wasin the works before the acquisition and the sort of separate from the acquisition. comcast really wants this platform to be used as a way to control the entire home. so even beyond video, they're thinking this device will eventually or really for people
that have smart devices now, internet connected devices in the home they can do it right away you can use this basically this platform on the tv to cell the thermostat or the smart lock system in addition to aggregating the video service. and it also has an option for customers to upgrade to comcast video service if they want to go from broad band service to a video service. or at least that's what i'm told. >> we should note comcast does for the have an official comment here on your story, alexthank you for bringing that to us. at the end of "closing bell" our al alexsherman. we have a fed decision tomorrow. >> we do. >> and still question base trade. but we had a major rally today on wall street. >> up 8% in seven trading days i do think you have a reassessment going on. if you assume late october was some kind of a low are we running hot already in terms of the rally had? see what the fed says and how the bond market reacts. >> and mainly the rally is
growth stocks. >> this is the latest phase, the growth stocks that all of a sudden got priced at a discount a couple months ago. >> i wonder if jay powell and company tones down the language and expectations of rate hikes. >> in a non-decision statement i'm not sure how much play they give. >> we will see more discussion to come coming up. that does it for "closing bell." >> "fast money" begins right now. "fast money" starts right now. live from the nasdaq market site over looking times square. i'm melissa lee. traders are tim seymour. steve grasso karen finerman and dan nathan. we start with the which would day on wall street after a big night in d.c the dow surging more than 500 points soaring into the close ending near the highs of the session. the best day for stocks following the midterm elections since way back to 1982 but while wall street went wild, the real drama came from inside the beltway. our own eamon javers is back at headquarters with the details. eem sfwloon melissa, that's right. we had the wild press conference from the president in the east