>> and really the way they use it is to interact with other people facebook is still good at that >> yeah. >> we'll have to see what happens on the regulatory front. >> thanks for joining us >> good to have you here closing bell starts right now. have a great weekend everybody >> it is time for the closing bell a volatile end to what has been a volatile week. tech is lower yet again as the chip stocks get slammed. we'll explain why that sector is so important for the entire market plus the pound recovering ground today as the u.k. names a new brexit secretary we'll speak with the man who resigned from that very role this summer about what he thinks of theresa may'sdeal

you have what your records say they are they have to start shaping up. >> cramer joins us on what the centralback is getting wrong closing bell starts right now. ♪ good afternoon welcome to closing bell. we have particularly excited to have mr. cramer. i don't think he has ever been on closing bell when i'm on it let's get to the markets and check in on what we are doing for the day and for the week we are higher by 0.5%.

it has swung more than 350 points >> the s and p is on pace for the worst week of the month despite gains there as well. let's begin today with the biggest stories. we have the latest excellents fr -- comments julia is following facebook fallout. let's start with you >> that's right. the president was in the oval office he made excellencomments about d where we stand isn't the negotiations here is what he said >> but put on tariffs, $250 billion and we have another 267 billion to go if we want to. we may not have to do that china would have to make a deal. >> so a lot of people focusing

on the comment from the president. we may not have to put it on china. it seems to be a positive indicator that some deal might be coming down the pipe. i talk today some here -- talked to some here they cautioned the president is being optimistic, suggesting china wants a deal they caution that there's nothing eminent here there's not as if there's something moving in a big way behind the scenes. officials suggest that the letter the cl lett letter they sent was an encouraging sign but no major concessions in that letter and nothing there that officials here viewed as a major breakthrough in those talks. all eyes continue which they will have a chance to plemeet f to face at the end of this month. they think if it is going to

happen it will happen around that event >> okay. thank you very much for that nothing eminent although markets are turning to the news. clips plunging and soft results and guidance we have the results there san francisco. >> they are calling in a crypto hangover suffering a decline and also an issue here, the data center business posting weaker than expected results and disappointing guidance to boot the stock getting shelled. trading at 52 week lows. it is the worst performer on the nasdaq 100 for the week. it also delivered a weak forecast it makes the machinery that's used to manufacture semi

conductors take a look. it is nearing bare market territory of 25 components only two are not in connection it points to three broad concerns they say trade tensions, smart phone market saturation and pressure in memory chip pricing. back to you. >> it's amazing to see that reversal thank you. >> turning now to facebook on the defensive after this week's critical new york times report about how its lip handles crises >> facebook shares dropping as much as 3.5% today the stock now down about 3%. this is amid growing talk of regulation they say he is disapointed with facebook management. zbli don >> there was a dark underbelly

as well. we have exposed that and i think far long time the companies thought if they kept their heads low it would go away this problem is not disappearing it is only increasing. americans are getting more and more concerned >> fellow democratic senators urging the department of justice to expand the investigation for reportedly hiring partisan political consultants. it is about people that criticized facebook. they say it was not hired by facebook as an opposition research firm and coo sandberg saying to suggest we weren't interested in knowing the truth or we wanted to hide what we flew or we tried to prevent investigations is untrue facebook management has come under criticism. we are unlikely to see big changes in the top because mark zuckerberg controls the country. back to you. >> thank you >> shares are down about 3%

right now. fresh 52 week plus low i should say. today we have tom and rick at the cme. good afternoon to all of you i will start with you. it would seem that the trade headlines really seem to be driving the market action. is that what investors are focused on right now >> i think they are focused on two things, one the federal reserve. you mentioned about the federal reserve tightening and two, the tariffs which are a become and forth negotiation that seems to happen on a daily basis. i think anyone's market is dependent about what two things will happen in the future. i believe both of them will be down played some what in the coming months and i believe the markets will be higher over the next few months. >> tom, in weeks where we are

seeing facebook and apple struggle, is it hard to see the broader market rally again >> well, there's been a lot of pain and the idea about trends are surely in place. the s & p 500 breaking below the 200 day average is critical. as we look it has seen a huge shift from growth stocks to quality stocks it hasn't been in place about three or four years. the thing that's most surprising is money is coming into a merging market the pe is to on average about 10 and growth even though it is down 30% so far this year. it tends to be up 20 to 30%. so smart money is betting that china trade deals will get fixed. these are jumping on the value bandwagon there because these stock prices are pretty cheap. >> it has been another busy week

including the interview. how is it playing out in the bond market? >> it has ban wild week for a number of reasons. ill give you the easy reason right now we are at two month lows should five year notes close right around where they are trading now at 289 it happened quickly, just six or seven base points. we can be looking at the charges i'm speaking you know, i'm down 15 basis points and five year on the week you're only down about five basis points on a 30 year bond it could be the lowest i find that the interest rate complex is telling the story here i think the story is twofold one i think the volatility has pushed buyers into treasuries. i think another channel that's

worth mentioning the divergence is taking a toll on bonds that's to be expected. that's the logic of the bond market also, how little volatility they have had today is they softened even though the equity markets were livened up by president trump's comments regarding china and tariffs and take it a step farther. it lost some of its best trade why do i mention it? if you're out there thinking that the china scenario gets worked out but should it get worked out it will be a barriearish factor. it has created a lot of channels of trade that helped bolster the dollar's value >> on the topic of interest rates how much is it effecting equity markets

is it just a sort of super official factor that will be shaken off or is there an impact that will have a lasting impact on where evaluations are >> if you look at most they are not very high. they are pretty tame in a nice range. we haven't seen a temperature of tightening i think the fear is what's driving markets the most i think it is stemming from the fact that rates have moved up by eight times over the past few years. real rates are still at zero i believe the federal reserve once they get neutral will because and stop and see where they areat

i think they are willing to risk for more employment and economic growth they will extend the cycle to bring back the 25 to 54-year-old demographic off the sidelines into the labor force and make longer term growth prospects more firm. >> thanks so much for joining us thanks to tom and rick we have a market flash we have details. hi this comes up to the stock that dropped more than 230% after hours following the trial of a clinical drug trial results. best day since june 2016 back to you. >> thanks for that coming up next, the man who resigned as the brexit secretary

joins us to tell us what he thinks of prime minister's latest brexit deal and jim cramer saying 2 central banks read on the economy doesn't mesh with corporate america. e inill break down why hthks the fed is missing the big picture. stay tuned gary, gary, gary... i am proud of you, my man. making simple, smart cash back choices... with quicksilver from capital one. you're earning unlimited 1.5% cash back on every purchase, everywhere. like on that new laptop. quicksilver keeps things simple, gary. and smart, like you! and i like that. i guess i am pretty smart. don't let that go to your head, gary. what's in your wallet?

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welcome become the dow is up 153 points today travelers, both of which sold off earlier in the week. all three are up theresa may appointed barclay. multiple cabinet resignations. joining us now is may's former brexit secretary thanks for joining us. >> my pleasure >> clearly you oppose her deal for brexit and are opposing it loud and clear would you admit that increases the possibility of a no deal

hard brexit and is that a risk you're happy to take >> i think it increases the possibility. that possibility is there all of the time in any deal you have to be able and willing to walk away if a deal is not good enough. to give into that fear is to say any deal will do, thank you very much what is being proposed by the prime minute sfer aister is a dt has taken away all of the possible economic benefits the idea was once we left the european union we would control our laws and regulations and businesses we could do deals with the united states. it is worth taking a small risk, a small but manageable risk in

order to achieve a better deal i'm sure we can do that. >> you mentioned you have been having meetings in washington today. so what deal have you come up with in the short space of time? >> it is pretty much the same deal i wanted to pursue in march and june when we ended up differing on this strategy it is a free trade deal. it is one like the european union struck with canada it improved with other precedents they have done a deal with south korea. a that's good for them it protects their industries and

but also it allows us to give them the 39 billion to make their books balanced there are lots of reasons for them to agree to this. the last thing i would say in terms of time, i have said since the beginning that the time that matters in this negotiation is the last few months. it has always been they hold off and hold off and hold off and only start negotiating properly as the clock ticks out very often they are done in the last day, last hour and last minute in the time available i expect it to happen here too >> risks of no deal will rise ig is n -- significantly if you wait until the last minute. the benefits and no deal exists that contains all of those individual benefits. if we dive in on the canada deal you and some of your friends mentioned, yes, it has free trade ingoods.

can you say you can get the canada deal and throw in financial rights >> this is one of the illusions that people have outside the union. it is essentially in goods as you relate and refer to it it is various financial services. they existed since 2006, 2007, 2008 they have not as successful as the city of london i would like to see us get a more service deal. i wouldn't hold my breath on

that the city of london will have control of its own regulations it's a huge advantage for it >> but mr. davis, with respect shares fell 13% this week. it is the least volatile and down 25% since the peak in march this year. they are all down sharply. they are all down since the result of the 2017 election and all down over the last 12 months it is very much disagreeing with your tone. >> it doesn't know the end result yet we don't make our policies off the pack of one or two day movements in the market no matter how big >> and it is pretty much every time frame you could address >> they don't know what the

outcome will be yet. as it is to throw away the opportunities of what it is 60% of our trade and actually at least that percentage of the city's trade is on the basis of the presumption of a few stockbrokers that it will go badly for. the bank has got a very good work up model for how we deal with that. it hasn't been in it yet when i talk to the leaders they were all very very very nervous about this they want you to conceive the case and accept the european rules. now most of them say to me actually we don't want to be rule takers. we want to decide our own rules. it gives us a big competitive advantage. the other thing which we put to one side of this is the financial stability.

london is one of the best places in the world to do business in financial sector it is also one of the safest and we are the ones, not the european union, we are the ones that make it that way. we made it safer with capital ratios and so on i don't really think that the movement of a couple of retail banks are what we should worry about here >> the ceo's do strike a similar tone of worry. clearly talk of a phootential vt of confidence. does she need to go to pursue what you want on brexit and would you put your name into the hat to be the next prime minister >> normally we don't come in we have brought anymore than that but let me say this. for the last three months i have

maintained a campaign on the alternative ought to be for our country. if that's focused on the policy, not the person prime minister very good prime minister she is good at running the country. on this issue we have a strong disagreement what is much more likely to happen is this deal will be rejected by the house. it will be rejected by the house of commons in my view there's no way i could see it getting through she will have to come up with another alternative. it will actually improve our relationship to allow us to do the free trade deals it will work out better for our relationship in the long term too. so that's what she should do that's what we'll keep the government on the straight and narrow >> thank you for joining us

here safe journey back to the u.k coming up former commerce secretary says wall street will eventually regret the administration's tariffs should you make changes on your retirement account? don't go any wrehe closing bell back in a couple of minutes.

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>> welcome back. the dow is up two-thirds of of a percent. the dow is up 221 and low down 141. today's wild swings capping off another week of roller coaster action we have a look at how retirement savers should be thinking about their portfolios amidst all of this market volatility >> it has lead some to make major moves in their plans daily trading is more than twice the number lofl. trading jumped again last week 401k may be buying and telling

on emotion it happens often surveyed 1,000 last summer that had at least $50,000 nearly one in three admitted to making an emotional decision to sell in a 401k plan. many are than half had kids in their household and nearly half described their investment knowledge as expert or advanced. no matter how much you know, poor choices in other areas can do more damage subsidizing your adult children, buying a second home and failing to factor in retiree health care costs are all she sidecisions. the markets will be volatile when it comes to savings it is important to focus on what you can control.

>> i feel like people will open them up and say where do i stand on the year? they will find they are either flat or maybe even lower what is your advis advise to th right now? >> the fact is they are opening them and paying attention. they may be surprised. it is a time to revisit how much they gain and where they are right now and if they will be able to reach the goals they selt forth it may be they need to be more defensive and move some of the money into fixed income. there has to be a plan attached to it.

>> great to see you. >> you too sheer what's happening at this hour everyone north korean state television says they will deport a u.s. citizen after he entered the country illegally from china the american identified as bruce byron lawrence nations unanimously approved a ground breaking overhaul to the international system creating key units vital for trade and science. >> nothing will change on the bathroom scales tomorrow or next year what will be the benefits of this thing we put in place a system that doesn't depend on something

that's 180 or 140 years old. >>. fao schwarz is making it return the new store opening at 30 rockefeller plaza. they brought back the keyboard that was featured in the 1988 tom hanks movie, big there you go >> just in time for christmas. >> i know. i can't wait to visit the store. i'm debating i have the two and a half-year-old at home. i have to make sure i have the iron fist and i don't walk out with too many toys if i go >> i'll come >> thank you, guys we have got 28 minutes to go until the close of the markets we are currently in positive

territory. they talk about that i want to show you three days on the upside 119 yesterday. it is sitting around at 122. it is a nice move up here. it is trade deals. caterpillar down notably here. today 130. it is retailers in general another down day an ugly week overall no wonder the defensive names are where they want to be. mcdonald's is at a historic high it is all about defensive stocks

right now. back to you. >> thank you let's send it uptown now hey. >> you know, we have been in and out of positive territory. the usual suspects are not the leaders today. it continues to be that the fan names continue to be and it has already been at a death cross. we have netflix joining it pretty close amazon not there yet the stock hit a major speed bump and resistance the thing is it's the big cap tech and it's the biggest losers this week for all of the

headlines that we have seen they are relative outperformers intell is the best contributor all week back to you. >> thank you chip stocks getting slammed today. it is plunging after the company issued weaker than expected guidance so how much do these stocks matter to broader market let's bring in art here. good afternoon to you. ivan, given the weakens and nesw much is more broadly to the markets? >> i am a little surprised semiconductors have been weak.

they are in everything from bathroom scales to autonomous vehicles the average car today has around 170 different semiconductors in it this whole migration to the cloud is driven by storage capabilities it is the engine behind everything in tech and we have had a tremendous level of innovation which is pioneered the visualization of data. >> do you think these are a precursor? >> well, they have said in the past -- >> okay. >> you -- >> i really don't. i don't think we use them when they are up at 100% over the

last three years there are trepnds that remain very in tact i think crypto is one. a slowdown shouldn't take away all of the other things ivan was talking about. i think certainly the growth in self-driving cars and virtual reality. think it is getting to a point where it is much more reasonable came out with a report and able to bounce. intel, you know, i think all of those things are telling you it is closer to the end not the beginning. i think it is a market that has looked at this i think part of it is secular decline in a couple of pieces that are important

is it a reflection of the china trade deadline >> it is encouraging i think it was a bonus i never thought it would be a real driver. a lot of people were banking on that for advanced micro devices. the bigger picture of all of the other connectivity >> thanks for joining us today still ahead on the closing bell, jim cramer joins us. >> and later it has been a rough week for retail. we'll take a look atwo t of the names leading the decline.

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in 2007 jim cramer sounded off for ignoring signs of the financial crisis >> people have been in this game for 25 years these firms are going to go out of business and they are nuts. they know nothing. >>. >> and today cross-claim ser fired up again he'll tell us why coming up after this break later, concerns have many wondering if it should be regulated by the government. we are going to discuss that coming up on the closing bell. i think that she's a very nice girl... ...you never got the brakes looked at?

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the market didn't think they were good enough boeing is down 1.6% mad money jim cramer speaking out and what he views as rate hike policies and the state of the u.s. economy. >> so many have told me how

quickly things have cooled we are baffled that wasn't supposed to occur so soon. >> i used to talk with him he is just wrong when he says things are strong. i say that because i have better information than he does i am much closer to the situation than he is >> their record is not as good as mine. i'm sorry to be like that. you are what your record says they are they have to start shaping up. >> jim cramer is joining us to discuss. hey. >> hi. how are you? >> doing well, thanks. so before the break we played your 2007 now very famous rant against the fed. >> they know nothing >> yes >> there we go.

>> and this is great >> we don't have that anymore. >> tariffs are hurting the quick pace of the rate hikes are hurting. the idea of what normal is when we have an abnormal market you know, for bonds it's really a shame. we need to do more work. i have been thinking about this. some times we don't do enough homework maybe we are not focused maybe things going on. some times we don't do enough work some haven't done enough work. they need to make more calls it's okay. not everybody does great work. we all went to college it's all right just because you plight have

been smart in college doesn't mean you have to stop working. >> to what extent is this? we are ten years into quite a long economic cycle that has been fooled. it cannot remain near zero forever. rates have to go up. it was always going to cause this economic growth period to come to a slowdown at some point. >> i favored the december rate hike i want to make sure things are not out of control by no means. i have said i don't like rash behavior i like -- >> has they said it is definitely going to hike three times next year though in. >> it is irresponsible >> they haven't said that. they are definitely going to do that >> they did put that out you have to understand that the fed chair did say that he --

it's okay to overshoot he misspoke >> it's a drag to do a lot of homework i have to tell you, if you talk to my wife i say what are you doing all of this work for it is these moments. >> i would like to be bullish. when the president said those things it was immediately taken back it was pretty good what he said, i favor rate hike and i would like to wait urn under -- in what world is that

irrational they are doing things that are frankly not safe and they are saying things that are frankly irresponsible and they need to be crawling on the carpet. i am not some tv guy who is a 63-year-old person who just woke up i was born at night but not last night. i'm saying come on focus, guys. just because you're on the fed doesn't mean you stop work also -- >> but are you -- >> jay is good he feels bad about the things he said he's a good guy. i guess i have to call him i don't know >> we are building about half the houses we did when the country had half the people.

we still can't sell them kb home has a huge amount of housing. we'll get existing homes you have 3% mortgage if you buy a new one you have to have 5% mortgage they know that they have affordability data they don't want to focus on the things they should they have this judgment that the economy is great it is irresponsible, not impir kal judgment i fay very rigor i think rigor is what matters. they are unsophisticated and i would rip up their homework and tell them to go home >> great stuff thank you for joining us >> thank you >> they can call and tell my mom i'm very ir rational give her a jingle. >> but you do your homework. >> not everybody does their homework i used to teach. these people aren't doing their

homework i will give them a c minus do some extra credit for heaven's sake. >> james quincey jim, ask him for me when i can get a cup of coffee here >> he didn't like it >> you can tell him it's a good dinner mad money is coming up at 6:00 p p.m. eastern time. we'll dive into the drop on the closing bell in just a couple of minutes. eighbors. you like them. they always remember everyone's names. your kids love swimming in their pool. you like them. if you forget your trunks, they'll loan you some. they have a section in their stock portfolio just for pool stuff. everyone likes them. you like them. but you'd like them better if you made more money than they do.

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welcome back to the closing bell still falling after a revenue missed yesterday after the bell. the specialty retailer said brands were due to congestion at chinese. stock is down another 11% today. it is down more than 15 prote% r the past week. i actually bought stuff from them huge delays on the pieces of furniture that i ordered when i hear about inventory

issues it is very personal for me >> i can tell. look at this >> i'm tifired. >> totally not but it's -- >> maybe a little bit. up next we'll have the closing count down we have four minutes left to trade. really want to be there, but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment

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the dow is up 126 points the high was 220 and low 141 down it can tell you that similar picture. we are in positive territory it was at the start of the session. nasdaq is in negative territory. it is against all of the s and p. the dow is up about half a percent. utilities towards the top. quick snapshot for this week as well we have the dollar trading at the moment it is down for the week despite falls and also oil prices down sharply for the week >> it is a lot more stable it has been down and coming off the bottom bad news is we are down 1.5% on the week there is a lot of damage very few gainers we saw merging markets up for

the week but not much else walmart and macy's still declines those are the big stories. >> the s&p down about 2% nasdaq down about 2.5%. back to you. welcome to the closing bell. here is how we are finishing the day on wall street the dow finishing the day up about 127 points it was after another volatile session up and down in total

more than 350 points today 25418 is your level on the dow s and p 500 ending the day up higher it is 6 points to 2736 the nasdaq after covering between gains and losses it is 7247 keep in mind all three indexes are lower on the week. russell 2000 ending the week we have facebook shares getting hit on new steps of regulation we'll see whether they can face this additional scrutiny coming up and leading the dow this week we have 3m was the biggest decliner pg and e was the laggard david is here. mike, let's start with you

it was another very whip style week >> it was. i would say just to get the kind of cautious backdrop out there very very mild follow through today on the s & p 500 today we remain near the lower end of the range. very defensive sectors we are leading. that's kind of the backdrop that the market is back on its heels. i think you have to take notice that each of the last three days you have pretty big selloffs that were recovered mostly or completely it seemed like the market was calming itself today you had a lot of juice come out down below 19. of course you're heading into a potentially quiet holiday week i think it is looking for signs of being able to heal itself if you took it out and the market today looks a little bit better both today and this week. so i think it's kind of a two

way market the overseas hard hit markets have gotten some traction. i think you have to be on alert that maybe we have a little bit of potential to have an upside spark. >> do you think we'll test either the highs of the year or lows of the year before we get to the end of the year >> well, it's a pretty short time between then and now. i think we are going to sit in this trading range given what we have been there it is 30% or something. i think it is rates and trade. i think we have interesting news about trade. that is the big issue. it is about the stock market being open and rates could close that i think the segment that you had on with jim cramer three, four, five minutes ago, that's what is going to clahange the narrativef they change their stance and their wording.

that will be a big part of what the market responds to in the next year or so. >> president trump moved the markets with comments regarding trade and in particular with china. >> we put on tariffs, $250 billion worth of goods. we have another 267 billion to go if we don't want to we may not have to do that china will have to make a deal china has not done very well >> the markets moved on this >> yes >> it is not anything tangible yet. is it legitimate >> it is not some of what we have heard before, i think it is legitimate that the market had gotten it compressed to a level. also, the next wave of tariffs is almost entirely the president's choice so it's not as if it is unofficial out there trying to send some message. if he wants to send a message

and have the talk of a deal in the air before g20 i think it's legitimate i don't think it's the make or break but we are in a mode where the market is really just sort of take any daylight it can find >> how do you think the market is positioning do you think it is the possibility that we get some sort of i guess possible early deal do you think that it's in terms of higher tariffs being put in place? something else >> it is clear to me that the market cares about the trade issue. you saw that today so i think getting a deal would be helpful i don't think it matters what it

is i think if the market cares about it we don't have much control over it. it's not like the fed where you can see what they are doing and see what they are thinking it is one guy making these decisions and a difficult thing for the market to digest >> richard, i doeld him where the feds stands on making moves going forward. >> as you move into the range that is close to neutral then with the economy doing well it is important to shift the emphasis towards being data dependant. >> i think my projection of where i is i think it would make sense. >> what do you think >> it it is the i still think

they have thfl it is about the where the economy goes and two to three rate hikes leaves a lot of time to not do anything i'm not sure there was a sense of urgency conveyed. i think it's not far above where we are right now it maybe makes sense to wait and see after. >> and do you think that there's been no mistake made by the fed? they have always decided not to next year or in terms of communication, the way they allowed the market >> i don't think there was an overt mistake made to me it's all about the way the market took it.

>> i don't think it is yet a mistake and maybe if it went in december and march and june it would quickly turn into a mistake. >> it seems like the market is already -- it will be done how important is it? >> the stock market can'tdrive their behavior they need to look for data that the economy has weakened enough that they can say neutral is

another 25 or another 50 and not another 300. i think they are going to see that you see it in housing and a few other industries once they get that they can back off without saying it is because the market is down the last thing we within the to so is say we are not raising rates. so i think we are in that weird position where the fed probably wants to stop but they don't have the data to do it yet i think we'll have it early next year >> now, it was a rough day for chip stocks in video the biggest loser after giving weaker than expectedguidance

>> does it stock up if you look back >> it tends to be. it is a leading indicator. i it is confirming what we flow. you had a pretty good run up into this quarter. maybe it will stall out a little bit. to me the big take away is the fact that the stocks that are effected directly are still going down on bad news >> right so you had a bad period. at some point you want to see them quit reacting and start to come back. it would imply that the bad stuff is discounted. >> do you see semi conductors as an economic indicator or do you think it is more of a reflection of what's going on specifically and the facts they have had

major moves over the last couple years. >> and again, you know, this is evidence that the economy is probably not as good as it was three or four or five months ago. >> it has 60% gross margins. these aren't companies that are in parol we don't have what we had three or six months ago. i think the economy is not what it was the stocks are reflecting that >> you had a massive evaluation adjustment none of them are reallysaying anything about underlying demand in the real economy in the most goods. none are saying anything about fed conditions it showed pretty good

conditions all of the things that the fed would look at as an indicator are not necessarily sounding alarms >> there should be conversations with you and jim in the middle of it. david, before we let you flow i want to ask you about one of the sectors you do like. you like the u.s. financials >> well, i think that he owns a lot more than i do i think he is older so maybe he can afford to do that. he has done better than i have done i think generally you an industry i think they are positioned to grow and continue to remix their businesses like they have been doing again, we have gone through a 30 year bull market and now we need to adjust to not having a 30

year bull market and you buy the better managed companies and they will be sustainable over a longer period of time. they are saying they will continue to create a 2008 credit problem. once they back off then we'll be fine >> okay. great stuff. thanks for joining us. still to come, stocks rallying says kind that wants to make a deal on trade they tell us whether the trade war may be coming to a cease fire but first lawmakers saying facebook cannot be trusted to regulate itself. we'll discuss whether government regulation of facebook would work strait ea ghahd.

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shares of facebook finishing lower by 3% today. sandberg denied that facebook ignored russian activity sandberg knowledged in a facebook post that they said to

suggest we weren't interested in knowing the truth or we try today prevent investigations is simply untrue. mark warner, vice chair talked about potential regulation for facebook earlier today. >> there has not been a lot of give on this side. i don't want to kneecap these companies. they are great american innovation companies no regulations at all. no guardrails. it can no longer exist they have to work with us to get the appropriate guardrails >> so what can be done what should be done to regulate the tech giant we have ceo of thompson strategic consulting it is chairman of business in the public interest.

good afternoon to both of you. your company has worked with facebook in the past if you're consulting them now what would you say >> i think it is an opportunity for them i hope they take it seriously. at the same time i think it's an opportunity for congress and the administration to actually engage in the policy discussion. it is the reasonable expectation of the use of data >> second, is there is an organization it is service like facebook and the poor have no access to sharing information. >> is it just the issue of

protecting customer data or are there other potential areas of regulation like whether or not they should be considered publishers it is the content that is posted on their platforms and also the question of percentage of market share that they have >> yeah. i think if you draw a line down the middle of the page and put the pros on one side and the cons on the other side the pros of regulation outweigh the cons. so what would regulation do? the cons of course are -- it could possibly chill innovation. i think the pros outweigh the cons obviously privacy is a big

concern. so congress can approach this and probably will approach this from two different directions. there seems to be some uniformity of opinion that the regulation needs to happen >> it is seen that they can't police themselves and they need some helpat least in the short term to get things right a lot depends on this. advertising in terms of the commercial side and then consumer confidence and the fact that we all use these products >>. >> what should it look like? you senator warn their made proposals. is that the right way to go? is there another option here >> there are some elements that he proposed that might have some

traction it also highlights a problem what is it that you're trying to regulate here? okay there's a lot of complaints and concerns about the regulation of data that's one thing, the safeguarding of data there's another concern people are having that they are talking about the regulation of content. that would concern me grately. it is worth a discussion when you start talking about regulation there's has to be a broad based understanding of what the expectation is. it is a point that i think we often ignore the american public or any has a schizophrenic relationship on one hand they want people to know something about them. >> on the other hand that they

are concerned about not going -- information not going where it is not supposed to go. at the same time the national security people want broader and open access to a lot of information and that might concern the public too that's why we have to have a broader consensus. while these are coming from different areas the public sees it as sort of this schizophrenic relationship they have to be able to talk about what the reasonable expectation is >> i have a feeling there is a lot more talking still to come we have to leave it there. thank you for joining us up next, chinese stocks have rallied this week while the u.s. market fell. we break down the charts to find out what it says about a possible trade deal straight ahead. and vicom making a deal to produce original contents, what it means for the state of the streaming wars that's coming up don't go any where (toni vo) 'twas the night before christma,

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mike is over here. >> at least slowing down they are under performance recently it is a one year chart of the

fxi. it is the chinese stocks and s & p 500. so going back to here around january or february, this is 2 first rumblings of the trade war coming out of washington threats of terrorists, here is when you saw them take effect and take hold. all the way through this period when the u.s. market was still doing well if you looked at the performance in september it was going up obviously we saw all of those charts between the u.s. and china here is what's most interesting to me is the last several weeks. the u.s. market rolled over. now you have actually seen a couple of these snap upwards which suggests that we have a lesser fear in the market of perhaps a hardlanding.

>> it is early 2016. >> it is global markets as well. >> it is from august of 2015 and there was about a six month period >> it was sort of spring loaded. >> i can't wait to see what this chart looks like in a couple of weeks. >> it will anticipate something. >> it looked better. >> i didn't like the last one. >> yeah. >> i'll work on it >> mike, thank you very much president trump says china wants to make a deal on trade. up next carlos gutierrez will

tell us whether we are closer to a deal or if the trade war is only beginning >> mad money's jim cramer is telling us theeconomy is cooling off. coming up we'll debate whether the fed should take a rate hike pause next month ...you never got the brakes looked at? oh yeah. no. at cognizant, we're helping today's leading manufacturers make things that think and do automatically. imagine that, a world of new digital products and services all working together for you. can i borrow the car when it's back? get ready, because we're helping leading companies lead with digital.

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time for a cnbc news update. here is what's happening at this hour. baby ruth and elvis presley. >> the presidential medal of freedom has been given to individuals who have made outstanding contributions to american life and culture. this year it is my true privilege to award this honor to seven extraordinary americans. >> annual tradition attracting a big crowd in chicago today the association of black mcdonald's associaters kicking

off the thanksgiving food gave away handing out boxes of food for the holiday. this year veterans got preferential treatment the car that lebron james drove in high school is going on the auction block. the h2 hummer was given to him when he turned 18. that auction ends december 8th you still have time. >> he had that in high school. >> that's a fancy car for your teenaged years >> he was a fancy player still is >> still, that's a young age to have a big humvee. >> it is >> he is a big guy too stocks seeing volatile swings as trade headlines trickle out. we have the latest on where we stand now. >> yeah. that's right we have headlines from a key trump administration official. the president talking about

chinese trade. earlier today he made comments that made a lot of waves on wall street they were focusing on the idea this was a positive indication of where things are going. sheer what he had tosay. >> the president saying he thinks a deal will be made he said he thinks the chinese wants a deal and the united states would necessarily have to impose additional tariffs on china depending on how things go i also talked to aids behind the scenes here. white house officials telling me what the president was doing there wasn't indicating there is some massive deal to be had that is just behind the scenes and just about to be announced he was saying he was optimistic about the way negotiations are

going. they will meet and if there's anything to be announced here folks expect it could come in that time period >> thanks very much. sorry about your u.s. soccer team yesterday as well we will continue to discussion on trade. joining us now former commerce secretary. good afternoon to you. thank you for joining us >> good to see you >> thank you >> better for having you with us >> do you think the president wants to fundamentally change china's economic power going forward or do you think he is seeking something he can then frame as a political win >> i think strategically among his people and among the folks that wrote the national security strategy, yes. i think the public stance has been we see china as a strategic

competitor the word that drives the chinese nuts is the strategic part that has been the message so far. on the g20, you know, one is that they have a nice photo op, a hand shake and an agreement to negotiate. they negotiate certain things. the problem is that i don't think president trump wants to give up certain leverage it is called three points of leverage one is there january he can take the tariffs off from 10% to 25%. he has to decide whether we go and put tariffs on another $267 billion of imports and then what products.

>> i want to go back to a point you just made. that is a focus on this word strategic. why would china have an issue with that word when you see the made in china 2025, their stance as an immerging country which many have argued against. >> i think they see the word strategic as meaning that for us the u.s., that china is an exes ten shl issue. they fine at being a competitor. it is almost the opposite of an ally yes. they were taken aback by that. we had never framd it in that way. >> we were talking about the fact that the chinese stock market has seen a little bit of

a relative pick up compared to the last year or so. >> the irony is exports continue to be pretty strong. technology firms will be impacted it was impacted with an export ban. it is on top when we find them as we speak the trade deficit is growing. our economy is strong.

to fulfill the promise is going to be tough. i think what you see is the chinese companies continue to export they continue to report earnings but it's going to be down to really how much we do to impact chinese companies even more. that's why i think the president will want to move forward. i believe this idea of a cease fire goes against his gut. in terms of the structural strategic side and the trade deficit side it has always seemed the president was more focused than the trade deficit. couldn't it be in some form of china agreeing to increase and

essentially buy more while deferring the strategic side of things >> it could well be a deal to lower produc lower tariffs on certain products businesses will see through that what business is complaining about is china 2025. are we going to have to turn over our technology. the trade company i think u.s. companies understand that it is a line item like a line item and on a gdp statement the other thing to keep in mind here is the democrats have taken over the house as we all know. i think it's a contest between who is more anti china

donald trump or nancy pelosi if he comes back with a deal that has very little substance and there are good photo ops i think he will get a lot of criticism and i think that will just make him harden his stance. he has to be thinking about that going into these meetings. i think he also wants do go in with a good stock market so what we are seeing now is the president being some what of a good cop so that markets aren't too jittery. >> we'll have to lee it there. thank you for joining us >> thank you very much netflix strikes again one day after competitors struck a major hollywood deal, the agreement with one of legendary studios. we have that coming up momentum is building for the

fed to slow down rate increases, casting doubt. up next, whether or not there should be a hike in december stay tuned it's time. time for a new kind of cloud. the ibm cloud. the cloud that proactively protects your business from threats, instead of just reacting to them. that lets you modernize and move more of your apps without re-writing. that unlocks insights from all your data and puts it to work with ai. get a faster, more secure journey to the cloud. the ibm cloud. the cloud for smarter business. ♪ ♪ i'm ray and i quit smoking with chantix. i tried to quit smoking for years on my own. i couldn't do it. i needed help. for me, chantix worked. it did. chantix, along with support, helps you quit smoking. chantix, without a doubt, reduced my urge to smoke. when you try to quit smoking,

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>> it is responsible for the misuse of government funds with dealing with investment fund i can never say it the right way. goldman sachs on the matter. an ongoing investigation we continue to work with other authorities to get to the bottom of what happened and to move forward. they are intensely focused on this matter. i bet you thoughts on this >> yeah. for sure i think this is an interesting statement to get they have been very tight lipped thus far they had to be so there's lots of questions we have had that they haven't been

able to give us color on there is no color on numbers or anything like that >> the stock prices has quite a big fine and quite a big punishment it is down over the last month to date over the last three months it is down 13 to 14%. so this is priced in already not a worst case scenario but a one or $2 billion fine >> yeah. i would say the likely financial impact is probably priced in i think it's also happening at a time when nasty tone in the markets. this is really people not interested in the banks. i think the question longer term will be is there any damage to the franchise? any sense that the firm kind of gets put in. it is hard to speculate. >> and the wild card which there is no indication of yet is that

the investigation moves on as opposed to these two individuals. >> yeah. >> i don't think it is priced in at all that's not the sorry tory at th moment letsnetflix has done their n deal the streaming kingpin, they teamed up on the pair doks last winter moving the film to netflix look for more original content for netflix as a result of this pact netflix off a little bit today it is more broadly along with weakness i mean it is an extraordinary ongoing battle the costs aren't getting any lower. >> no. i think it was a more dramatic response remember, disney content is coming off >> exactly it was good earnings i think they chose the earnings

released to talk about this. i think they want to reemphasize that it is a big factory of content. it is valuable to be able to sell to all third parties and too many people look and think of it as mtv and basic cable network. >> i don't get the netflix original movies as much as i get the netflix series you get kind of hooked on them you don't need the big screen so much movie, more of a big moment. >> some get a thrrelease. >> yeah. >> it has been said you can't count all of the stars in the sky. >> oh boy. >> i didn't flow thknow that. soon you bha not be able to count the number of spacex projects in the sky either

it is all part of a project called constant internet access. >> just to put this in perspective the fcc has now green lit almost 12,000 at l light launches over the coming years. currently the total number is less than 2,000. we are talking about just spacex if they can launch the satellites to do all of your screaming would be six times in numbers that are current will up there. >> another huge business >> and that represents the ambition in terms of what they believe their pipeline would be. >> if they have a broad band service they can then fund that next generation rocket to send

people to mars >> how many satellites would be capacitity for this space? >> they are slightly different >> these are all questions i don't think folks have >> yeah. >> there is still room for more. >> up next we'll debate whether the feds should cause rate hike plans over concerns of a slowing economy. your brain changes as you get older. but prevagen helps your brain with an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. healthier brain. better life.

out of control but then i favor pause

by no means i said no rate hikes. i dope like imprudence i don't like rash behavior not behavior that's based on empirical. >> has the fed says it's definitely going to hike. >> that was "mad money" hoeft jim cramer interrupted by me at the end. telling us he is in favor of december hike but he favors more prudence does the fed need to pause and when let's bring in david westle from the brockings institute and joe. good afternoon you a both. joe, if i start with you, do you think the fed has been refresh are rash or would be rash if they did three. >> i argued they should stop at two. they've gone beyond that and let the balance sheet do the heavy lefting and let the yield curve steepen a bit. they've let the balance sheet unwind and they've been hiking three or four hikes next year, that would be really imprudent.

>> david, do you agree. >> i have a view on this but after hearing cramer i "a" worried i might agree with him so i'm rethinking. i think raising rates in december makes sense for two reasons. the reason is unemployment is headed to 3.4, 3.3%. fed funds rate is at nourlt. barely above inflation makes sense to raise one more time there is a political reason, to show the president he can't muscle the fed into foolish monetary policy decisions. but i think the fed needs to be careful about moving further in 2019 the economy is slowing inflation seems to be very slow to pick up and i think that that's what some of them, rich claritin in miss interview said. when they say data independent they are saying we are not promising to raise three or four times next year as you some of you have been anticipating. >> joe, in terms of what

underopinions the fed's existing guidance for 2019 and what they think the economy can handle, what have we seen happen, aside from the s&p 500 being 6 or 7% below the high to really tell the fed the complexion has changed, whether it's on unemployment, inflation, credit conditions, all those things seem to be holding up fine. >> to some extent. david's point about unemployment, i have the view that unemployment drifts lower that conditions the fed to believe there is a wage price spiral to come which i don't see but that's the underlying thought process where i see weakness is in-housing you've basically had residential investment down five out of the last six quarters. that tells me real rates or neutral rates which aren't observable -- we're past point of neutral you have seen credit deteriorate. and inflation, the throe-minute rate of change on core inflation

is well under 2% my sense is with global growth in a lot parts of the world slowing, the fed runs the risk of flattening the curve appear disintermediateiating the banks and money creation slows that's a bad sin for growth in early 2020. >> david with all that's considered if the fed slows the pace do you think the dollar has peaked for its medium term horizon. >> boy, i'm not smart enough to predict when the dollar has peaked i'm in the stupid enough to say it while someone is running a camera i think if the u.s. economy continues to be stronger than the economies of the rest of the world and the people expect the fed to raise rates and the rest of the world seems shaky that people would rather be in resignries than something else then the dollar will rice. it's interesting in part because we have expansionary fiscal policy, the dollar is going up and that's likely to make the trade deficit worse. and that's going to give the

president heartburn. so it's interesting to see how he reacts. >> wilfred, we need a lower dollar because what we have seep in em is significant weakness. for that to happen the fed has to relent on the hikes >> agreed. >> gentlemen, thank you for this afternoon for this conversation. david westle and joe levornia. >> you're welcome. >> up next we will look at the ggbiest market moving events for next week right back after this break. to , but you can't. at cognizant, we're helping today's leading media companies create more immersive ways to experience entertainment with new digital systems and technologies. get ready, because we're helping leading companies lead with digital. i that's the retirement plan.e, get ready, because we're helping leading companies with my annuity, i know there is a guarantee.

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welcome back investors will have a holiday shortened trading week ahead but still plen of economic and earning news monday. the nahb housing market index comes out as well as earnings from l brand and intuit. on tuesday the latest data on housing starts and earnings from target, lowes, best buy and med tronic. >> wednesday brings existing home sales consumer sentiment and weekly jobless claims as well as earnings from deere. then on thursday the markets are closed for thanksgiving. then we have black friday. >> we do but markets are open in the morning. >> yes. >> "closing bell" on at 12:00 until 2:00 main take aways from the week. >> housing matters by the way.

appear that data and best buy and lowes all the rest main take aways i think the end of the week market quieted down a bit. it seems maybe it's trying to see if the levels will hold, you know, i don't think it's a foregone conclusion they will but we are looking for that. seasonally very strong week with thanksgiving week be. >> we will look for that morgueening thanks for being with us. that does it for "closing bell." "fast money" starts now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. traders are steve grasso brian kelly, tim seymour and dan tonight on facebook facebook could be facing regulations as reports of turmoil dominate the news feed. fresh faces in the c sweet will that get the social giant on track. plus the trade trauma continues as competing headlines give the investors whiplash the president puffing the possibility of a