quietly up 25%. thing three, amazing, bank of america, merrill lynch, apple computers market cap 100 million bigger than every european bank combined! >> my mind is officially blown. thanks for watching. safe weekend, everybody. >> "closing bell" is next. welcome to "the closing bell" to close out this friday and this week. i'm kelly evans at new york stock exchange. >> i'm tyler matheson in for bill griffith. the markets continuing to hover. oil settling about $75 a barrel even with a bit of a bounce back today and keeping our eye on both of those numbers in this final hour of the trading week. kelly? >> we are also watching apple. that stock continues to reach new heights and right now looking at the price it would be trading, get this, at about $800

a share. 113 here. can it keep marching higher? we'll take a closer look coming up. >> nba commissioner adam silver shocking and i do mean shocking the sports world in support of gambling. joe torre joins us with his thoughts later on in the program. >> looking forward to that, tyler. i think some of the guys might be able to stick around for it. that's next hour w. an hour to go, here's the dow off 34 points. s&p giving up about 2. nasdaq slightly positive. apple's performance, of course, is helping today. >> and joining us, sal caltrinni, christine short and rick santelli. welcome one and all. sal, let's begin with you. >> sure. >> you sound like a lone voice

out there insofar as you think energy could be a good play right now at this these prices. why and energy is a big broad sector. why specifically? >> i speak to pms and the smart ones, many underperforming and looking for some way without taking too much risk into the end of the year for a catch-up trade and basically if you look at this year whether you look at the semis or the bio tech or the number, some of the retailers, this year's been characterized by false hopes of like a selloff, you know, a black swan event. right now energy, the whole complex is sold off. it feels in energy like the financial sector felt in 2008. you know, the high yield market i spoke to those traders today. it is trading off 20% to 40%. crude is $75. saudi arabia and opec want it to be $85. just to meet their budgets. so i'm thinking at this point

and i'm not making a call on energy but i'm seeing investors step in, do the work and they're looking at the energy sector. >> it's interesting, rick, yesterday we were talking about the risks that may still be in the system. i want to raise a point with you that's kind of on the opposite side of that. we were arguing that this is fundamentally good for consumers and arguably for the macro economy. let's posit this. the federal reserve couldn't come up with a better scenario an this drop in oil prices we have seen. do you think this is equivalent to an easing of monetary policy? is there any chance, rick, to surprise us with a real early rate hike? >> i guess anything is possible. it's hard to comment because, you know, it is not like there's a book that says this this happens, this is what we're going to do. because they move the goalposts quite a bit. think about the unemployment rate and looking for, you know, two years ago, a year ago, a month ago and where the

unemployment rate is. but one thing you hit on that i think is significant. you did bring up that high yield with a lot of that financing that was done by the energy areas is going to be in jeopardy. i don't have a problem with that. but think about how the federal reserve's very easy money policies enable that condition to be used. so in a perverse sort of way, may be helped the industry to get along. investors may not thank them but it's electronic trading in chicago. the first firms to invent the process lost out because they spent so much money they couldn't make it. everybody else bought it for pennies on the dollar to this day are successful. and i think that's what's going to happen with a lot of technology and pricing in energy. >> christine, let's turn to you because i know you've been looking at the consumer and obviously rick and kelly just making reference to what the fall in oil prices means for consumers. what do you see as you look across the various sectors and

what does it imply to you about the kinds of companies that might prosper? >> well, from a fundamental point of view, retailers do phenomenally well this earnings season and you have to think it's having to do with the drop in oil prices. gas at a four-year low and encouraged the consumer to spend more. we look at consumer sentiment at the highest level, 89.4 back to july 2007. that's one of the favorite leading indicators for the consumer and telling us, mid november reading. that's telling us consumers feel confident in the holiday shopping season and big for retail earls which have done well for the third quarter. they're up 14.5% with earnings and lower at 4% on the revenue front but some saying that the holiday shopping season could be the strongest of three to four years so i think you have got a lot of reasons for this. the job market is improving and lower gas prices and seeing consumers go out and take advantage of that.

>> steven, we should mention if steven bolts from set here, twins due any moment here. congratulations on that. if we could, ask you to talk about what's happening in the credit market and how people have been making reference to it as we just heard from sal, we have some of the paper, especially high yield energy stuff trading off significantly. what happens next? >> what we are seeing in the credit market is positive sign for the markets and seeing energy in the sector and still elevated, the broader high yield sector is up. seeing spreads come in. i think one of the things worried about this year is technical pressures. seeing a selloff in the credit market, would it feed through and mean? the fact that energy stocks, energy credit can be weak and other credits are strong, that's a positive sign. that differentiation. and some of the smart credit managers we're talking to these days are finding opportunities selectively in some of those energy credits.

>> great point. >> mark, let's ask you why you like growth oriented stocks right now s. that largely because there's not much value left in the value stocks? >> think there's been a real premium placed on the consumer cyclicals and the consumer stocks and you see the impressive technology stocks of google and facebook trading at reasonable levels given the economy and i put apple in the bucket, too. they point to the retailers. i think a lot of money could go to apple and upgrading the iphone 6, the ipad aye coming out and where we are putting the focus for reasonably placed based on the accelerated growth rates the companies have. >> that would explain the trading action today and ties together. we have crude oil rising today but still in the $75 range. let's bring in jackie deangelis at the nymex. jackie? >> hi, kelly. happy friday. let's review the prices for you. it was another wild day in the

pits. technical buying taking us higher. we were up 2.2% on wti. finishing at $75.82. brent, $79.41. not able to get through that $80 mark there. i do want to point out wti down more than 3% for the week and actually it was its seventh weekly loss we have seen, longest losing streak since 1986. significant here. technical buying driving us higher. really, the fundamentals here in terms of oil supply situation haven't changed. and of course, the big question out there is have we bottomed? consensus seems to be, no. traders think we are going lower from here and seeing this technical movement to the upside before that happens. i just want to point out that the deal between potential merger talks of halliburton and baker hughes. some people are saying that the talks could have been in the works for sometime and that may be indicating that even the companies are now forecasting

steeper oil price declines and why they're looking for consolidation. a theory to consider. back over to you. >> that's true. thanks. sal, what is your reaction to that? how big a deal of this potential tie-up? >> it's very, very big deal. i think unexpected. and, you know, if you speak to smart energy investors and they're expecting more consolidation in the e and ps and the oil service, when's interesting is if stocks come down, if you're the acquirer and acquire a stock coming down more than your stock has, you are doing a transaction. that's another -- >> predicated on oil prices stabilizing or rising? >> just the stock price. a stock investor, that's just stocks. that's what you're buying. so the stock market can clean up this mess. if you're a stock investor, the stock and market and companies clean up the mess themselves and consolidate back to prosperability and where the

they're going to look to year end. >> seeing the same thing on credit side? >> no. you know, i think regardless of what's going on in the credit markets we are looking at an environment of companies to feel confident. the fact seeing the big acquisitions, first stage stock buyback. dividends. now we are starting to see m & a rainy then cap x. it's confidence of the corporate sector and a positive for risk assets in general why you want to be in equities today. >> kelly, one more thing. jackie brought up a great point. we haven't seen losses like this in the energy sector since '86 which is as we talked about yesterday the last time u.s. domestic oil production was at or above 9 million barrels a line. it's a reality. >> it is a nice pretty picture there heading into the weekend. rick, thank you. thanks, everybody, for being here in afternoon. have a great weekend. good luck, steven. 50 minutes to go into the close. the dow off about 28. s&p negative. the nasdaq still, though, tyler,

slightly positive. and speaking of the nasdaq, apple flirts with record highs on a pre-stock split basis. the tech giant now approaching $800 a share. bank of america, merrill lynch says the market cap exceeds that of all eurozone banks combined. the pros will debate whether apple is too toppy right here. that's coming up. >> also a wild ride for intercept pharmaceuticals this year, basically. the ceo here to speak with us exclusively about the volatility and new drugs in the pipeline. stay with us.

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welcome back. we begin here with dominic chu rounding up the big movers of the session for us. >> kelly, start off with hertz moving lower after the rental car giant said it would restate the 2012 and 2013 earnings continuing the accounting review and stock down 5%. harley-davidson is moving higher as goldman sachs upgrades the shares to a buy rating from a

prior neutral citing expected growth driven by new product innovations at the motorcycle maker. shares up by about a% on the day's trade. petrobras the splum meting. amid a widening police investigation of corruption in the company. shares down by 2% and moving to the downside after the watch maker warned that the third and fourth quarter results beyond wall street expectations and cut the full-year outlook as demand decreased overseas and ending with pandora up big here on new it is chairman and ceo purchased 25,000 shares of stock. the shares up by about 16% so far on the day's trade. >> thank you, dom. now, while intercept pharmaceutical up 130%, more than doubling, pretty wild ride for the stock, look at where it

was in march. $462. now $160. 0 dropping 9% this week alone. this after the safety of the company's liver drug called into question. now, tyler? >> let's dig deeper. meg terrell joins us with mark, the ceo. >> thank you. doctor, thank you for joining us. >> thank you for having me. >> kelly touched on the wild ride of this year. looking at the data and just before this big jpmorgan conference beginning of the year, do you think given the volatility the market understands your story? >> look. we have been pretty surprised by the stock move. i think the fundamentals of the company are stronger than ever with the results of the two drugs. with any company tackling neglected liver disease and the first indication of filing for approval for first half of next year and then starting up with a

large international phase three trial we hope to get approval of in non-alcoholic hepatitis in. >> you talk about the opportunity in nash. it is a huge disease and kind of a silent disease and not diagnosed in everyone who has it. >> that's true of a lot of chronic diseases but nash is a disease out of nowhere to become an epidemic liver disease around the world and really tied broadly to western diet. just too much junk that we're eating. high fructose corn syrup and soda and so on. over 10% of the u.s. population is thought to have this disease at this point and just looking at patients with the most advance disease and need treatment where none exists it's thought to believe 6 million or more u.s. adults. this disease is going to become very soon number one reason people need a liver transplant surpassing alcoholic liver

disease and hepatitis. >> one of the tests or trials of a drug that you have is promising showed as you pointed out an amazing improvement in the condition of the individual's livers who had this nonalcoholic liver disease and side effects strong and disturbing to many, namely elevated bad cholesterol in people who already might be prone to heart disease and creating some severe itching. do you think that has to do with the drug itself or potentially more with the dosing that you were using in these trials? >> i think any drug has side effects and what was observed in these patients, we have known for sometime, are transient cholesterol increases. you mentioned ldl cholesterol as bad increased less than 10% at the end of the treatment at about 18 months. we believe that standard statin

cholesterol management should be used in most of the patients. a lot of these patients were not on statins at initiation and that most of these patients will respond well to statin therapy taking our drug. frankly, as i mentioned, most of them should be on it. itching was not severe, actually. we've seen this before in primary cirrhosis patients and if you start at a lower dose and then slowly bring them up, and frankly, just treat them over time you will see an adaptive response where the itching returns to the same level as seen in placebo patients. >> thinking about comments elon musk and others and you outdistance even them. and we're talking about an impact beyond just what you see on the screen. this changes your market cap. arguably changes the dynamic of

suitors and the place in the market. what can you tell us about how distracting if it is the term that you would use for the roller coaster ride your shares have been on. >> it's an exciting year. that's true. and we've benefited greatly of being a public company. going public in 2012, i think there were less than ten ipos. we raised hundreds of millions of capital and well belonginpos where not just one but two programs and well capitalized to do that. yes, it's been a little bit of a distraction. frankly, we have our nose to the grindstone and keep going. soldiering on. >> thinking about that, you guys have been mentioned so many times as a potential acquisition target. you have got this potential drug for huge market. and just tell us about the pathway to market from here. does it involve partnerships? potentially involve being acquired? >> yeah.

well, we have partnered the drug in asia where there's a separate development path with a great part innocent and thanks for bringing that up because they have another large nash trial that's fully enrolled and reading out towards the end of next year and compliment the flint trial results. what we have stated is that we're very happy to go it alone here. we have the muscle and the talent in the company and the expertise to launch this drug, projecting in 2016 for the treatment of primary cirrhosis in the u.s. and europe and then following that building for nash. >> just a real quick one before you go and maybe because i don't fully understand this but i think about the companies that really have come in and solved pretty severe liver problems in this country. why double down in this area when there are drugs that have proven now efficacy here? >> great question. gilead is hugely successful

primarily in chronic hepatitis c and a cure for the large majority of patients. but this is a cure for hepatitis c and we are going after liver diseases. pbc, nash and others with few or no treatments available to these patients whatsoever. and, you know, again, i'll mention that pbc is rare and fifth leading indication for transplant. nash will surpass hepatitis c. >> the need is there. >> thank you. the need is there. >> meg terrell, appreciate it rvelgts as well. that's the ceo of intercept pharmaceuticals. to see a roller coaster, look at the share price. >> the chart didn't do it justice. it kind of leveled out that drop of about $280 a share from the $400 down to where it is today but any ratd, the stock nevertheless up significantly year to date despite. there you see it, actually.

all right. we have about -- what is it? about 38 minutes before the closing bell. the dow down 30. the nasdaq really not moving particularly highly there. s&p 5 nasdaq up a little bit more than a point. elizabeth warren is a wall street foe and one also now to president obama. she's planning to oppose the president's nomination for a senior treasury post. we'll discuss a what's behind that move. utilities versus financials. someone here says sell the youty tills and buy the financials. we'll debate this one. air condig i'm starting to sweat. i'll just do it myself. useless. that's nice. set's the mood. have your entire house within reach,

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welcome back. the in addition's biggest hedge funds to disclose or wrapping up the disclosures for holding period. a rash of them. what can you tell us? >> hedge funds, mutual funds, managing more than $100 million, you have to do this. as of september 30th, the data is 45 days old and from a regulatory standpoint, they have to do this. big stock changes are coming via tiger global. this is run by chase coleman. they boosted the stake in exposure n. auto home by about 6.4 million shares and focusing on the chinese auto market and a new stake in bit auto of 6.6 million shares so the chinese auto theme very much big with chase coleman and they have also reduced their holdings of rental

car giant avis and made a much larger boost to their position in hertz. a couple of notable trades here, they're completely now out of the dollar general position and they have liquidated shares of netflix that they had so, again, tyler, kelly, interesting trades out of chase coleman. back over to you. >> thank you very much. the president's nomination of antonio weiss for treasury undersecretary getting pushback from the democratic party's most prominent progressive leader. elizabeth warren has plons to oppose the nomination of weiss particularly for past work on wall street where he was involved in the burger king/tim horton's deal. go ahead. >> ben joins us now with an inside look at the story. ben, good to see you again. so, was this expected to be a

shoe-in until you got wind of elizabeth warren's opposition? >> i think they wanted it to be a shoe-in, certainly. any time now, what this tells us now is if you have a connection to wall street and work in washington. you are going to get heat of warren and the progressive wing of the democratic party. weiss widely respected on wall stre street. warren's hitting him on the burger king deal. tax inversion. basically saying that anybody who has wall street experience should not be in a position of power in treasury responsible for dodd-frank implementation. i don't know if it knocks him off the path of confirmation but the party is moving left and doesn't like people in wall street. >> worked on a tax inversion number one. and number two, from wall street. >> exactly. >> so who would she rather see in that job like that? >> saying through an aide to me last night, when we broke this

story was that she would like to see somebody with more experience working on consumer protection issues because this job will interface with the consum consumer federation protection but owe. not someone with okay we sags deals and the experience is international. so, you know, he may still get through and a larger message about politics in the democratic party. >> 99 of 100 senators think they would be an excellent president. does she want to run? >> i think deep down she probably does. very ambitious. i interviewed once and before she was running for senate and when i brought that topic up, there was a glimmer in the eyes. she did want that badly. now i think she enjoys the force of a spector of hillary clinton. would she get in the race? she might. if hillary doesn't move away from wall street i think you could see warren get in.

unlikely not impossible. hugely ambitious. >> a question on how it complicates the president's hopes to push through moves that he might have in mind here for the next couple of weeks. you write that talking about weiss, young star on wall street made partner at 32. has been and this is what i'm getting at. a donor and bundler for president obama. is this just politics or is it politics and more politics? >> well, i think, he would like him in the job to interface with congress and work on budget deals. that sort of thing and tells us, though, if you're looking for the administration to be able to cut deals with republicans on tax reform, on, you know, a number of issues, immigration reform, anything that business wants it is hard tore do because they keep getting pushed left and any time put a centrist up for anything they get knocked back. warren in the leadership. >> exactly. >> i think it tells us in the next congress if democrats want to make deals it is hard to do this. >> very quickly, ben, does

warren have friends in the democratic party on this side, on this issue? and what does the republicans say about mr. weiss? >> grassley, republican of iowa, raised questions of the tax inversion question and not sure he has every republican lined up. no other democrat said they're against this. there's power in the democrats now and see how it plays out but he is not going to have an easy sail through committee on this. >> thank you very much. thanks to ben white chief economic correspondent at politico. thank you. >> thank you. still red for the dow which is off about 20. same for the s&p. nasdaq slightly positive and helped as mentioned by apple's performance today. >> should you dump utilities and buy financials? next guest says, yes. find out why right after this. ♪

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welcome back. they have had good years you can see by the graphic and warning the utility sector may have run a bit too far and financials are

better buy now and take the profits and utilities and double down on the banks and other financials. >> joins us with tom essay of ken sail trading and a believer in the utility sector at least for now. carter, go first and make your case for why you think the run is basically over for the utilities. >> sure. well, i mean, what this is based on, of course, is an issue of just too far too fast and not only, of course, the leading sector year to date but it's where utilities are in relation to their five-year trends and one looking at the s&p 500 utility sector, we have reached the top of the well-defined channel and this group is ascending since the bull market began and mean reversions are power and and we would think you're likely to have a period of underperformance relative to the serious outperformance of the proceeding 12 months. >> tom, first to you, i'm

curious how you make the case for yule tutilities yoing highe here. >> yields will be suppressed over the next couple of months even though seeing better than expected economic data here. europe is still a mess. europe is a huge influence on the yields here in the united states. i think yields stay low and utilities can continue to benefit. >> i mean that's very fair. i don't think the rate environment going to change much but that drop down to 1.8% on the 10-year and ricochet back we think it's a neutral range and so that tailwind's not there for utilities and discounting a great deal and then the yield on the sector is not acceptable for the risk you take to stay in the group. >> so tom, you don't dispute that over the long term you agree basically with carter that financials will outperform utilities. but over the past week or so in

a rising market, utilities have come down as carter might well have provided down to i think $228. >> yes, that's right. you are right on both points. i agree long term. i don't agree with him over the next couple of months. part of the reason we have seen utilities get sold is because of the climate deal on sort of momentum trades from the climate deal of china and the united states. there's fast money that saw that as negative for the utilities. that's a massive complex agreement. not having a direct affect on the profitability over the next couple of months or quarters and i see a further pullback as a short-term buying opportunity. >> let's talk about financials and i think part of the issue here might be that for a lot of investors, only interested in yield or maybe just not interested in financials and make the case of someone agnostic to be buying this hotly debated sector. >> this is the other interesting sensitive part of the market and the issue is financials lagged

for ten of 14 months and since august they started to come to life and what appears about the group now is the sector up in line with the market 10% on the year and the big money center banks and so forth they have lagged considerably. we think that group which makes up about a third of the sector about to come to life and will contribute to outperformance financials relative to the s&p. >> tom, the financials that carter just mentioned, some of those big banks, they lagged for reasons and a lot of reasons to do with litigation payments they had to make and so forth. talk to me about those big money center banks that carter thinks may get into a better gear right here and whether you agree with that or not. >> again, i respectfully disagree with carter. i'm more interested in the regional banks because i think that they benefit from a rising tide here domestically. the money center banks -- >> are they in the financials,

tom? are regional banks part of the financials? >> xlf and not a larger portion of it. it's mostly insurance and money center banks. but again, i think globally the global recovery is still stagnant. that's going to weigh on money center banks. i prefer regionals. they're exposed to the united states. >> very much so. i think that's it. but i think as you point out, a small part of the sector. it really just has no weighting or bearing on the s&p financials will do and then the relative trade. global banks are so bad still. all the deutsche bancs and plays well to the cities and bank americas going forward. >> all right, guys. leave it there for now and some call financials utilities. that's another story. carter and tom, great to see you and have you on the program. all right, folks. we have got about 21 minutes left before the closing bell. the dow down ever so slightly about 14 points. s&p up about a fifth of a point and nasdaq up by almost 8.

all right. so up next, let's talk about apple in record territory. if they hadn't split it would be around the $800 a share. is $1,000 in the kartcards? you get a chance to vote. go to cnbc.com/vote. the poll is open right now. and when we come right back, we'll debate it. [ male announcer ] your love for trading never stops. so open an account with schwab. and when a market move affects, say, a cloud computing stock you're holding, we can help you decide what to do.

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welcome back. here's a look at shares of apple. soaring up 50% since this time last year this time. equivalent to $800 a share. >> would you buy apple at this price? log on cnbc.com/vote right now to let us know your opinion. there's the running tally. 2 to 1 say yes. with us now, timothy lesko and burt doman. burt, since you're i guess a long-term doubter here, i'll let you go first and make the case why you rather like it short term but you don't long term. >> well, i like it short term only because of the financial engineering. the company's buying huge amounts of its own stock back in

order to benefit the big shareholders and the executives who have stock options that reduces the flow and makes the earnings look much better. earnings per share increased. so that is the borrowing money to buy their own shares so that's why i call financial engineers. i'll bullish for the stock and strong year end when most of the stock buybacks are done by companies. you know? >> why are you skeptical longer term? >> well, look at all the metrics. it is losing market share like crazy and becoming a one-trick pony and that is a phone. it's a phone company. you know, look at the products of before. the ipod, basically gone. the ipad sales. it's losing market share. market share of one year ago was 40%. now the market share is around 32%. that's a plunge of 19% in market share. even the iphone sales in the u.s. this year are down 3.3%.

in market share. in japan, market share of the iphone is down 15.9%. >> all right. >> these are huge declines so it's losing market share as -- >> but, burt, you have been hundreds of dollars in the red on this bear case at this point. >> no that -- okay what? >> okay. >> i'm sorry. you know, i turn bullish on apple. i turn bearish after it hit $700. that was two years ago. i said it's going to go down at least to 420. it did hit that price. when tim cook had dinner with carl icahn. i said that's it. this is the turn. carl will have taught him about financial engineering which he did. >> all right. timothy, so obviously you still like apple longer term here. again, it's a huge stock. in terms of market cap. make the case for it. continuing to the upside here

after this run. >> well, i think there's a couple of things to look at and i take a little bit of exception of calling it financial engineering. it is a return to shareholders and they're screaming for years for apple to return in form of cash or stock buybacks. they have changed what they have been doing and that's really the shareholders benefit and i don't see that as a problem but if you look at valuation, 13 1/2 times next year's earnings in a company that may be losing low-end market share on cell phones but they own the high end and destroying samsung on the high end and i don't think it holds water when there's so much growth in low-end cell phones and apple never participated in the low end. i don't want them to. nor do i want them to participate in the low end on tablets either. the story's intact. the company's returning cash to shareholders and the valuation's where you want it. i don't see the hole in the story. >> well, that's a stupid

argument. i'm sorry. i can't be too kind but you're buying apple stock because they -- you know they will buy it back from you? that is a reason to buy the stock? >> no. i'm buying it because it's 13 1/2 times earnings. i don't really see your point, burt. i don't feel like casting aspersi aspersions. you can say that you were bullish at 420 and bearish before when it was 700. i don't think the facts really bear that out. >> i was bearish when it hit its top. one week after the top. in fact, it was six days after the top. >> all right. hang on a second. timothy, do you agree with carl icahn apple could be trading at 200? >> you know, we really just focus on the value cases so to me at give it a current market multiple of 17, 17 1/2 times earnings for the upside. even if earnings stayed stable rather than growing as they're expected to do, there's plenty of upside.

>> a quick -- >> we're valuation shop and keep a hard eye on that. we like the stock when it was -- we've owned it almost ten years now so, you know, we're not one that is are going to go in and out each time somebody changes a marginal opinion but apple is selling more devices than last year and selling them at margins that held up. i just don't see the holes. >> fair point. we have to hop it. timothy, you would know this especially in the stock that long. you know it always trades at this kind of crazy low multiple so why are you confidence here it's able to command a higher one? >> well, you know, as long as -- there's still earnings growth in it and not necessarily confident that it's going to command a higher one. i would think a low interest rate it could trade at a premium in the market and apple is held back by the very call it hype that it gets. probably kept it at a low multiple. >> kelly -- >> i'm not sure the multiple. >> we have to leave it there.

and it will be interesting to see what their market share is at the end of this quarter with that iphone 6 which i would guess has clawed back some of whatever market share they might have lost as burt points out. thank you very much. >> do you know anybody not invested in apple? >> me. >> okay. >> i'm not. >> there are very few hedge funds not invested in apple. when everybody is in, you want to be out. >> we have to leave it on that note. thank you. and for our poll, 58% still said they're going to buy apple at this time. thank you for weighing in. we like your view on the debates. we have ten minutes to go. the dow negative. came back a little bit. art cashin indicated strong buy interest. now drifting back. the s&p still negative. we'll see if it can turn around and head back towards record highs. ugly ducklings to swans, jeff cox says actively managed

funds are in for a hot 2015 after lagging passive funds big-time this year. he will state the case for that. and latter, joe torre up at bat. the hall of fame baseball manager will be here at the new york stock exchange to discuss if sports betting should be legalized. the commissioner of the nba's been saying that. joe's also talking up his charity to combat domestic abuse. that's coming up next hour. stay tuned. ive your money? uhhh. no, that can't happen. that's the thing, you don't know how long it has to last. everyone has retirement questions. so ameriprise created the exclusive.. confident retirement approach. now you and your ameripise advisor can get the real answers you need. well, knowing gives you confidence. start building your confident retirement today.

dow with a shrug off 28 points as you see right there. the s&p 500 basically as flat as it can get down a single point at 2038. that's .05%. nasdaq up about a tenth of a percent at 4685.84. david darst joins us now. always great the see you. i'm told it is your birthday. happy birthday. >> thank you, tyler. >> we'd all celebrate it with you if we could. >> great to be with you. >> a lot of focus on china on, number one, a trade deal. number two, an emissions accord of some sort of another. which side got the better of those deals, china or the u.s.?

>> great point, tyler. also the fixed asset investment, retail sales and industrial production and you saw all of those to the weak side. i think anything where you can see china and the united states cooperating it's a good thing for geopolitical stability and a kissingerian framework. you want to see the two great powers cooperating and a number of areas of natural contention. you have them as a rising power in the pacific. they have financial power. they have population power. we have military power. we have financial power. so you see these -- the china making these deals with russia on the gas, tyler, that's something big. don't forget, nixon and kissinger went to china in 1972 to split china off from the soviet union and one of the thing that is made a more tripar tight world. this united states and china, two agreements signed i view

that as positively. the markets this week, tyler, 58% bulls. highest number this year on this american association of individual investor survey coming out every single week. it is a contrary indicator. when everybody's super bullish, there's reasons to be so. retail sales, jobs, consumer confidence, manufacturing, industrial production. there's reasons for that. you see the labor market starting to tighten and very good because really this country's destiny is not just going to be determined by the top 20%. it is determined by the 80% who do a lot of the great work that's done in this country. >> david, it is hard to get you going, man. i can't -- i can't bring you out of your shell. there's something weird about it there. happy birthday! >> thank you so much. >> great to see you. up next, coming right back with the closing countdown and wall street's biggest hedge funds with the holdings. a lot of them after the bell. what they bought and sold last quarter. the headlines always move stocks

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see if startup-ny can work for you. go to startup.ny.gov. for tapping into a wealth of experience... for access to one of the top wealth management firms in the country... for a team of financial professionals who provide customized solutions... for all of your wealth management and retirement goals, discover how pnc wealth management can help you achieve. visit pnc.com/wealthsolutions to find out more. a final check as we head just a minute and a half away from the close. industrials off 25 points. 17,627. s&p 500 basically flat at 2038 and change and the nasdaq composite up 5 at 4685.

back with us on the floor is bob pisani. bob, i ask you to wrap up the week, one month ago almost to the day was the 15th of october which was the low for the markets. and, boy, have we come roaring back since then. >> that's right. ones hit the most, tech and health care, are the one that is have come back. they're essentially a new highs. energy lagged because oil kept dropping and energy stocks not recovered to any great extent. the important thing today is consolidation and moved sideways up fractionally. good for the markets. historic highs for now. next week, fed minutes. risk to the downside. number two, shinzo abe in japan talking about the sales tax increase and oil. so we're heading into that opec meeting and anything can happen at this point. consolidation still pretty good for the markets.

tyler? >> saw that potential activity in between halliburton and baker hughes and what that might -- >> a lot of smaller stocks are definitely in play. >> you bet. you bet. that's exactly right, bob. have a great weekend, sir. that will do it from here. i'm tyler in for bill. now down to kelly who will take it forward. thank you, tyler. welcome to "the closing bell," everybody. on this friday, the day and week on wall street, decline of 15 points on the dow. the s&p did turn positive at the close there about 2039 is the level to put us at record highs and double check the numbers. nasdaq having a pretty nice day up. a lot of that apple. talked about that last hour. amazing how the market cap continues to mushroom. let's get to it with the panel.

steve bertuni is here and kayla and welcome everybody. also fast money trader guy adami. larry, when's the message after week? all about oil or what? >> today is digestion. realtively good economic data. also digesting four big weeks of stock rebounds brought us up double digits off the october lows and the market taking a pause here to see the impact of midterm elections and the consequences to see and also what could happen with lower oil prices. how does that fare with the big important holiday shopping season? >> bull snish. >> we have had the big rebound. it's dangerous to chase the rallies. nobody wants to be burned in the end of the yore. >> guy? cautious here, too. >> hi. >> hi. >> did you hear david said? kissing najarian? the evil spawn and it was the

craziest thing. >> all i know is happy birthday, david. >> yeah. >> we'll leave it at that. >> many, many more. i mean, whoa. no, listen. i thought the week was interesting. the move in energy i think the thing that everybody has to focus on. i think people come down on either side of the coin. it's good because it makes sense because it's great for the consumer or there's something bigger going on. bad because it's deflationary and you know what camp i'm in but the thing that stuck out to me this week, look at the bounce of amazon postearnings. the same thing happened with netflix. a horrible report. that stock troughed the next day and bounced ever since. when's that mean? i think you can see the same thing in qualcomm. all about trying to identify trading opportunities. i think qualcomm provided you with this one this week. >> i see, steve, i think guy is bullish on the tech sector here. reasons to be? yes, no? >> i'm not -- i'm just looking for stocks to trade and for

opportunities. i'm bullish, bearish, nothing. agnostic as i've told you. >> i'm bullish. we have earnings season that was good. qe stuff digested and not big hiccups holding us back and into the new year, it's not many overhangs. >> kayla? >> well, i'm watching apple. fascinating at these levels in the 114 range. bank of america put together some numbers today showing that apple's market cap is bigger than all of the eurozone banks combined an enthen $120 billion on to that, as well. it's incredible and today we had an executive who runs a company that has technology that activates phones and follow the data saying they don't see momentum tapering off until after valentine's day so that leads many in the market to believe that maybe the bull market in apple for that stock will last for several more months. >> larry, going to be an iphone christmas in your house? >> it will be.

i'm due for an upgrade. we'll be taking advantage of that an contributing to the bottom line. >> 6 or 6 plus? >> i want the 6 plus. i'll settle for the 6. >> why? >> too big. >> it's just too big. like carrying a -- like literally a jeep in the pocket. i don't need that. history on our side. following the midterm elections, seasonal benefits in the end of the year. money pouring in. like a melt-up. money coming in. low volume. really scary. i like to see the heavy volume melt-up. that's a little bit tenuous and doesn't feel like it's sustainable. >> i'm glad you used the term melt-up. first an update on what's going on here in the energy sector and some thoughts from dennis gartman of the gartman deletter. i was going to say the dennis letter. are you saying we're putting in a bottom? >> i don't know but i think the time to be short is passed. something happened yesterday

afternoon that's interesting in the oil market and the futures. the market was collapsing. on a day when it collapses, the front months falling dramatically than the back months and the front months fell the same. actually, they fell slightly less. that's a very unusual circumstance. i watched the term structure and moving and the term structure not bearish on a decidedly bearish day. told me cover in, get go to the sidelines. i'd been very lucky. time to stand aside. bottom? i don't know. but i think the time for being short probably passed us by. >> do you also think that generally speaking this is a good development for the u.s. economy? you know better than anybody how levered up the names might be here at higher oil prices. >> well, some of the countries are terribly levered up and venezuela, iran, iraq have real problems and for the american society, the average american, this is a godsend. this is you've heard the story

before and again, this is one of the great, quick tax cuts that we have seen in a long period of time. if you're an american family earning $50,000 a year, the impact on you if you're driving to work every day, carrying the kids to the doctor, going to school, suddenly you have $40 or $50 or more that you didn't have before every month. that's a direct stimulus. that's a very good thing. >> dennis, at what level do you think that kicks into action? because we have seen falling oil off 25% from the summer highs and by extension lower gas prices and october numbers and retail sales rose a third of a percent and wasn't blockbuster by any means. >> well, you youngsters think things happen so quickly. things take time. it takes a while for the american public to understand what is going on. it takes a while for them to believe that gasoline prices have fallen to the levels they have. things are slow to turn around so -- >> i don't know.

to kayla's point, though -- look at the inflation expectations today. i mean, that i couldn't believe how quickly they dropped in response to the gasoline price. those do not move fast, dennis. you know that's a series that hardly ever budges and fell on the 1-year and to 2.6%! >> big numbers but the american public will respond to the decline in gasoline prices very soon. expect them to go to the restaurants more often, expect christmas to be stronger than we had thought. it's going to take a while. the average american is looking around and saying, wow, i really am not sure if gasoline prices stay down for a long period of time. down here for a month, expect retail sales to pick up accordingly. it's a -- i think a material change and not going to go away any time soon. >> in terms of christmas, finding a huge upside surprise or a little blip with the oil? >> i wouldn't be surprised if it's a very real surprise, material surprise. i think by december if gasoline

prices still maintain at these levels, crude oil doesn't bounce far, if they produce gasoline as i expect that they shall, then i think by christmastime the american retail buyer says, you know what? i have an extra $50, no, $150 from the last 3 months, i'll spend it. >> larry? >> what point is it a diminishing benefit to the overall u.s. economy? cap x cut and showing up in the numbers. that they have been soaking in throughout the year. when that's that benefit, when's the benefit of lower oil prices diminished by the problems elsewhere of the energy patch? >> a long time in the future. come on. let's -- cap x may decline in the oil business some time if crude oil prices maintain at these levels for a year and may well do, then cap x and the oil industry declines but the amount of capital to go in, amount of retail sales to increase, the

amount of change in psychology is just dwarfs the oil business and let's not get too concerned about that. as we were talking the other day, this is a great deal different than the fact that housing prices collapsed in 2005, '06, '07 and '08. that was an overwhelming circumstance. this is just a small circumstance in energy and the energy benefit that accrues there the retail buyer and trumps that completely. yes, some reduction in cap x and energy and the benefits of the economy large. >> i just want to pivot, guy, and have you give us some of your trades here. new ideas? >> i'll give you an idea -- >> do you sense stuff shifting around out there? >> one of the stock underperforming is mcdonald's but a couple times held 90, 90 1/2 and bounced and news on the back of it. i think the last couple of forced mcdonald's to do is to reexamine everything they have

done in the past and to somewhat reinvent themselves. they have to get better because by definition they have to get better. i think that's going to start to show up in the next couple of quarters. and i think on valuation it's cheap. you have news of activists now and i think mcdonald's here at 96 or whenever it is looks interesting. >> i like it. guy, so much. >> later! >> dennis gartman, our thanks, as well. catch guy at 5:00 talking biotech with citigroup about what's ahead for 2015 because it's that time of year. don't miss it. time to get active here. not getting in shape for the new year and you could do that, too. there's a report predicting active funds to shine after being badly beaten by index funds this year. also, pimco, this has jaws dropping up and down wall street. paying half a billion dollars of bonuses to bill gross and mohammed alarian just last year after pimco's total fund

underperformed the peers. is the board doing the job? that's coming up. (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours.

welcome back. it's been a rough ride for active managers.

according to data, about 1 in 5 outperformed the basic benchmark this is year and jeff cox says 2015 could paint a different picture and active managers finally outpace indexes. make the case for us, jeff. our panel is here and go to cnbc.com/vote right now to tell us if you think active managers will beat the s&p in 2015. jeff? >> there's only one place to go which is up and 20% of active managers beaten the benchmarks this year. tom lee of fund strat had a note and he points out to something called diversions and dispersions and just basically the difference of different sectors perform. we are at the lowest level since the late 1950s. now, lee did some research and found out that basically when we get to low, it doesn't last for long. there's a snapbecome and when that snapback happens, it is good for active managers and said that active management

could improve by over 40 percentage points next year. i don't think anybody's -- >> 40, h-0? >> h-0 percentage points next year improvement and basically on the past 13 times when we have gotten to these like one standard deviation events in the dispersions so -- >> fair point. >> yeah. it's interesting and i don't think people run away from index funds but i think that as we get more volatility into the markets, as the fed backs away and maybe rates start to come up that this could be a better time for stock pickers. >> well, larry, to jeff's point, couldn't be worse. what is your strategy at mayflower. >> we were an early adopter of exchange traded funds and blossomed in this country, more than 1,600, over 2 billion in assets is benefits. tax efficiency. low cost. simplicity.

however, today, we are starting to lose a lot of benefits. industry's gone full circle. active strategies on the vehicles. >> smart beta stuff? >> you lose the tax benefit. higher turnover. you loss the cost benefits and simplicity and jack vogel is talking about how horrific the changes are and a great vehicle and you blow it up and that's exactly what's happening so i think jeff makes a good point. it could happen and losing the benefits of passive either way. >> is this a matter of technology, as well, where i'm thinking about motifs to some extent and new ways that people think about trying to get involved in the market and what harvey wally is doing is no fees. >> saves you on the fees but to jeff's point, if dispersion is a low, you basically have the same performance across the board. the problem is we have been in such a massive bull market for so many years this it's really easy to say, well, you underperformed the index and the index risen spectacularly and the second you have a year the

s&p down or major etfs are down, that's a point you say, okay, it is actually not that hard to outperform an index on a down year and up year who can predict that and perform against that? >> steve? >> i think investors realize you can't control the market but you can control cost and tax and keeping it similple get the mos bang for your buck. >> that stuff really does add up in the long run. >> yeah. it does. kelly, great point. a lot of very good points made here. the etf industry is changing so much and almost $2 trillion in assets and following the case of the nontransparent funds where they're going to start to behave like mutual funds, i think that, you know, all of these factors are converging, especially with i think the fed policy, central banks and so much to do with this and has become too crowded of a trade and now start to look

for areas that -- >> i will say, i'm just -- yeah. keeping an eye on the bottom of the screen. about 80% of the viewers saying it will not beat in 2015. a lesson perhaps hard learned but, kayla, if you will, also speaks to everybody on one side of the boat, perhaps there's a case for the out of consensus view in 2015 and also one that people talking about correlation lately starting to make because it's dropped quite a bit, in other words, more of a stock picking environment. >> yeah. and actually, this morning tobias of citigroup talking about the idea of fund managers actively chasing momentum names into the end of the year to build up the foportfolio and a consensus thing that people are doing, everybody's doing it so that will sort of mute the effects of an active manager versus another one and consensus is also a killer here. >> that's a point.

jeff, new. >> you bet. >> have a great weekend, jeff cox back at headquarters. speaking of fund manager, pimco showing bill gross the money before the door. reportedly paid nearly $300 million in bonuses last year and the flagship fund beaten by most of its peers. so much for pay for performance. we'll look at how such an epic fail by a board can happen straight ahead. private equity funds making a big bet on legalized marijuana. is it something kevin o'leary would invest in? you'll find out. stay tuned. in a world that's changing faster than ever, we believe outshining the competition tomorrow quires challenging your business inside and out today. at cognizant, we help forward-looking companies run better

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even though they're pimco total return fund trailed in 2013, they reportedly received some pretty hefty bonuses. former ceo of $230 million, co-founder and former chief investment officer bill gross $290 million. how did the board of directors approve this? joining us is kevin o'leary of "shark tank" with the panel. john, did your jaw drop seeing these figures? >> well, you know, not really. not at all. it's a big number, clearly. they're big numbers but, you know, you look at what happened. you know? bill gross left. these guys have to pay these members of the board have to pay an awful lot to retain this top talent and don't make mistake

about it. bill gross is the reason that a lot of people end up at pimco. so now he's no longer there. maybe they didn't give him enough. >> wow. well, i mean, look. barry ritholts makes the point in his piece what bill gross reportedly made is as much last year as the top 20 ceos in this country combined and telling me they may not have paid him enough, john? >> you know, if i am sitting up at there and i want to make sure that i retain, you know, the assets so that i can get my fees, ultimately, i got to keep him here and keep him happy. you see what happened that he ended up leaving. outflows were tremendous. that's a lot of money that left that organization. it's a big deal. i don't know what he made in prior years when the fund did better. i'm not sure that $290 million

is actually the right number. that was unconfirmed. >> right, right. >> but it's clear that these guguy s warrant an awful lot of money. people need to think carefully before assaulting the board, you know, for a big number like these. >> okay. before i bring in the panel, kevin o'leary, what is your thought on this one? exorbita exorbitant? >> here's my thought. i speak as a chairman of a mutual fund company and two types of managers. one type sits in the dark and manages money and we are forms or doesn't. another type, bill gross falls into, is a portfolio manager, able to go and raise assets. if you look over the last 12 years, at how many billions of dollars have gone into the world's largest bond fund, his, he was able to act as an active marketing agent with a brand that people knew, trusted and saw performance in and he raised billions of dollars. and so, as a percentage of aum,

a assets under management, i'm sure the contract said he got a percentage of the fund. let's say he got 20 bips. that's why he's paid hundreds of millions of dollars. this is a fund that's maybe not performed in the last 18 months. it was a spectacular performer in the period of 17 years as rates went down because bill was long 10-year and called it right. celebrate the success of this man for the firm. he raised the money. he deservels to be paid. i hate capping upside. i hate it. >> kevin, i don't agree with you entirely but i'm in the same camp and i think inaccurate to say necessarily that pimco paid bill gross that much money but selling pimco and co-founded he had a giant stake in it an i'm sure lawyers that put together compensation package regardless

of performance that threw off a lot of money on the former stake. you compare it to some of the private equity funds, leon black of apollo, $546 million last year and a lot of that carried interest, a lot of that was special dividends on the stakes. and this happens to founders and they structure it like this so that they can make this much money off of the company that they founded. >> by the way, what do you guys feel about this? >> kevin, this is egregious and obnoxious. the shareholders pay for it. we're paying for it as shareholders and they have the right to vote with the feet and that's what they're doing. they're walking out the door finding out what was going on inside. >> were they walking out in response to the compensation or what happened when he left? >> both, both. superstars systems don't work in baseball, football or mutual funds and corporate america. nobody minds paying for performance. we paid for underperformance.

that's what was so ir tatding. we want the money back or we leave. money walks out the door. >> hard to say that -- >> the interesting thing. steve? hang on, john. steve? >> it's hard to say what the deal is. he built pimco. brought in $2 trillion and so everything's 2 and 20 or whatever and upside and aum and he brought in serious aum over the years. >> john? >> right. superstars are superstars because they make people money. that's why they're superstars. you know? this isn't the entertainment industry. which actually is very much the same. this is an industry of people to get paid and the reason he's getting paid and got paid and still is getting paid is because he makes people money. >> interesting thing is, bill gross is already, he's already a billionaire. this bonus does not affect the lifestyle one bit and which is funny. you think it's money to motivate him or a scoreboard and leave because of culture at pimco?

>> i must say i'm very worried about what i'm hearing. you're sitting in the heart -- >> john, go ahead. john? >> $290 mill, still left and these organizations, crafty board of directors need to tie down the talent in very different ways and should be criticized for anything, maybe that. because, obviously, the end of the day he left. >> kevin? >> it is heart in the capitalism, the middle of the new york stock exchange, and start saying un-eaamerican thin like capping upside. i'm afraid a lightning bolt will strike you down. to say he doesn't deserve it. i celebrate the success. i want everybody to have that problem. that's ridiculous. >> i'm concerned about the point that larry made here which is not so deserving and capping but

actually that the entire structure is built in a way where people are getting this remuneration where they're justifying it the least. that's what i find sort of hard to believe. >> you're not giving him credit for the last 12 years when he raised assets. >> the beautiful thing about this, the beautiful thing about this is if this is reported, if this report is correct, the vast majority of this is taxable at ordinary income rates and this country needs that. that's a good thing. >> right. going to be thinking about this all weekend. john martini, thank you. and kevin o'leary from "shark tank." an astronomical figure. $290 million. making some moves, dominic chu with the details. >> the big whales, right? talk about the 13 fs. the filings. they have to make them with regard to carl icahn, he tweets quite a bit and we have transparency. he lowered his stake in netflix

to around 1.4 million shares from 1.7 million shares. maybe profit taking there with regard to netflix and also raised his stake in ebay to 45 million shares. we know that he's agitating for change at ebay and the spinoff of paypal. general motors with shares feeling pressure of the past quarter and end of september 30th and then dan loeb, also taking a new stake in ebay about 4.5 million shares there. when's interesting, too, is the alibaba stake that dan loeb took. 7.2 million shares as of the end of september and a manager taking a bigger, bigger stake in what's happening with alibaba so that's a theme kind of looking at to see which of the managers is boosting their stakes and big names, especially alibaba. bringing more as the hour progresses here and those are some of the highlights right now.

>> they are. thank you, dom. here's a new term. pop-preneurs. is pot something? bringing him back. kevin o'leary would invest in. if he is investing in marijuana. plus, the commissioner of the nba just called for legalized sports gambling. does legendary baseball major joe torre agree? he is now one of the top execs in all of major league baseball. find out his take on that hot issue and more here at the new york stock exchange. just ahead. for access to one of the top wealth management firms in the country... for a team of financial professionals who provide customized solutions... for all of your wealth management and retirement goals, discover how pnc wealth management can help you achieve. visit pnc.com/wealthsolutions

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welcome back. we had a hot debate of apple earlier in the show and now on the website and sitting atop the most popular stories. the rest of the hot list, time to check in with allen wastler. >> you're right. it's all about apple today. we have a copendium including the debate on your show. repeat it right there. number two, highest paid graduating mba compensation package. apparently $1.8 million. this is reported by the website

poets and qruance and makes me jealous. i have an mba and never been paid anywhere near that. strippers in new york city that sued rick's cabaret. a judge ruled in their favor. they get $10 million. not independent contractors. they are, in fact, employees and owed back taxes and tips and that stock is down 5%. so there you go, kelly. a nice little wrap for your weekend. >> i think i discovered a new website. poets and -- >> you would like it. >> i think i would. have a great weekend. executive action on immigration, if you thought politics would change after the election, think again. the stock market might like it that way. chuck todd tells us the latest state of play and he joins us next. a new sector, marijuana. kate rogers live at a

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>> do you think the white house will veto keystone? >> i think he is in a box on this one. i think promised he's going to veto it. doesn't want it done this way. so if he is going to try to draw a line in the sand of how to deal with this new congress and this would be technically dealing with the old one, i assume he vetoes and it's a death sentence for mary landrieu and the reason why they're doing this about louisiana senate and i have to say i'm old enough to remember last week talking about, hey, everybody's going to try to get along. i guess, you know, deja vu all over again. >> people are pretty skeptical about that. i guess people surprised one of the first things the president said was to move forward on the immigration front so what's the latest in terms of when to expect the action? >> sooner than some senate democrats like to have. harry reid hoping to get through the lame duck period of congress. the's a spending bill to deal with, a couple of other things. he is concerned and if this is done before then it's poisoning

the well for everything. the president feels as if he waiting long ago. i think they're more ready to go than i think maybe senate democrats even wish that they were. >> you know, chuck, i'm wondering to what extent there are fractions within the parties already opening a little bit. maybe the gop side, stuff of a government shutdown or how to fund things going forward and the left, elizabeth warren to oppose the nomination for treasury undersecretary of antonio weiss. >> i think there's more independence by a lot of varying factions in both parties. i think you pointed out correctly when's going on. i think elizabeth warren feels comfortable flexing the muscle a little bit. harry reid has much less influence over the democratic senators. president obama feels as if he doesn't have to kate tore the needs of senate democrats and congressional democrats so i think this is going to be -- become the new washington where

you see a little bit more intraparty fighting on both sides. we were used to the republican side and i think more on the democratic side like elizabeth warren. >> is it possible from that emerges some sort of middle ground like the blue dogs or whomever the groups used to be that were more bipartisan? do you get the sense that's possible at all because of some of the new alliances formed by, for example, guys who might be democrats in states to support keystone and that sort of thing? >> in the past that would be the case but the people most likely to work across the aisle, the ones defeated. mark pry your, i can go through the list. kay hagan, mark udall. more likely to silt t in that centrist coalition of the senate so that's sort of what happens in sometimes the wave election that is the very people that are most likely to work across the aisle are the ones wiped out first. >> all right. chuck, thank you. i think. >> okay. see you sunday. >> chuck todd, host of "meet the

press." we will see you sunday chatting with louisiana governor jindal and sylvia matthews burrwell. check your local listings. coming up mere, looking for a way to light up the portfolio. private equity investors think they have a strategy to follow. marijuana. kate rogers live in las vegas from the marijuana business conference and expo and she joins us next. and a monday tune in at 8:30 a.m. eastern. steve liesman with a rare exclusive interview of fed governor jerome powell. great stuff. you won't want to miss it. no. it's called grid iq. the 4:51 is leaving at 4:51. ♪ they cut the power. it'll fix itself. power's back on. quick thinking traffic lights and self correcting power grids

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welcome back. as we consider once again the growing business of pot across this country, as states have moved to legalize it, marijuana entrepreneurs sometimes struggling to find normal relationships with banks and access to capital. kate rogers in las vegas and caught up with one of the only private equity firms gambling on the burgeoning business. kate? >> that's right. they eers based in seattle. they're privateers holdings. the only catch here, they're not investing in companies touching the product.

>> we're waiting for further clarification from the federal government and the u.s. disparity of the state and federal laws, and gives us a lot of concern and so we're looking at investments around the world in other locations where you don't have that federal state conflict. >> hey, guys. in addition to investing, they're making acquisitions like seattle-based leafly billed as the yelp of the business. they're on track to do about a million dollars in monthly revenues. >> leafly answers three questions. first is, when's the right strain for an individual person or patient? the second is, where can they find that strain in the state's where it's legal? countries where it's legal. and then thirdly, leafly provides information to consumers and patients on a daily basis in terms of content. >> privateers pushing marijuana more into the mainstream.

over the summer, leafly the first ever cannabis company for a full-page ad in "the new york times." kennedy said that cost them upwards of six figures and well worth to it. back to you. >> all right. maybe super bowl ads are next. thank you for now. have fun out there. we want to bring kevin o'leary back with the question, since this is still such a cowboy arena, if you will, is it a good time to invest in a marijuana company? would you? >> it's a fantastic time to invest in this. this is the same as being given a window to invest in alcohol distribution and manufacturing right after prohibition. my only problem with the sector and i'll full disclosure i looked at four separate deals now, one of them i really liked involved in leasing hydroponics facilities to growers in states where it's legal and a royalty on the output and a lease that provided almost a 16% return and the upside based on the spot

price of the product on a royalty basis and i was ready to go until one of the lawyers said to me, listen, kevin, there are many jurisdictions that you may land a plane in and get arrested because if this is a big part of your portfolio and highly publicized, you are breaking the law federally. and i have a big problem with that. i can't afford that to happen to me. and so, i decided not to do it. my guess is there's a lot of institutional capital like mine but waiting for clarity for the federal level. on a personal basis, i want this to be legalized and taxed. i don't want to see criminals making money at this and having poor quality product in the market. let's solve this thing federally and let me invest. >> would you guys invest? >> i think kevin makes a great point. it is about money. it is not about ideology. cities and towns need the revenue. >> that's an ideology. >> it is. look! i'm guilty as charged.

whether it's medicinal or a vice, these things can be taxed. pay for schools, roads. a lot of money in marijuana. let's get some of that as tax revenue to help back in the community. >> you think the federal government should move to decriminalize this? >> you need clear regulation and commitment and capital and result in revenue back to the local community where it's well needed, especially on the medicinal side. >> yeah. it's a little-known fact some states colorado technically in violation of federal law. >> if it is legal in the federally what's stopping, you know, big agra, a tobacco company or a, you know, cargill from rolling over the small, fragmented start-ups? it's a commodity. pretty easy. getting a billion dollar company -- >> that argues for being a start-up now, doesn't it? you're acquired down the red. >> they need to do that? grow the weed and distribute it.

it's not-tech. >> maybe it is. >> maybe the chemistry. not the growing per se but turning it into some of the products that would be used recreationally and decriminalized and i'm interested on on -- kevin, so that you have the legal infrastructure. the banking industry can finally accept transactions involving pot. do you think that consumer behavior would follow as quickly as we think it might, or do you think it would still take a while for people to take up this activity in such a recreational way? >> my thesis was that a third of the population would embrace this the same way they embraced alcohol coming out of, you know, when it was illegal in the prohibition period. it's a very good point there being made that a large tobacco company would immediately engage in growing as soon as it was federally cleared. and i agree with that thesis. but my investment philosophy was i would build up millions of square feet of very, very

productive labs. that was where i wanted to go with this. at least in vermont and colorado. and simply sell it to them at four or five or six multiple of free cash flow. i did the same thing in the climate control storage business seven or eight years ago. same deal. that to me is what this is. it's not technology. it's getting in early, providing a very high quality growing facility, and providing great product for people that decide to engage in this. and by the way, there is a science to it now. in my due diligence, i learned that if you actually want to stay within the federal regulations of the amount of active ingredient, you have to be a scientist grower. you need to do this very scientifically so that you stay within the metrics that are approved for medicinal marijuana. and by the way, i am not endorsing the use of this. >> i don't know. >> i never inhale. i never inhale. >> well, you're on the record with that now. kevin o'leary, thank you so much for your time this afternoon. appreciate it. should sports gambling be legal throughout the country? nba commissioner adam silver

thinks it should. what does major league baseball's joe torre think about that? he's here. stick around, we're back in two. big day? ah, the usual. moved some new cars. hauled a bunch of steel. kept the supermarket shelves stocked. made sure everyone got their latest gadgets. what's up for the next shift? ah, nothing much. just keeping the lights on. (laugh) nice. doing the big things that move an economy. see you tomorrow, mac. see you tomorrow, sam. just another day at norfolk southern. where the reward was that what if tnew car smelledit card

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welcome back. we begin here with another update back at headquarters. dom? >> this time it's david teper over at apple.per over at apple. a list of people buying into alibaba. he disclosed a new stake as of september 30th. also a new position in lorillard. they're in a pending merger with reynolds american. disney shares have been reduced. mgm also by about 900 shares. so a reduction in disney and mgm. meanwhile, a new stake in alibaba, one of the many managers hedge fund-wise. >> exactly. and that one paying offhandsomely so far. a long debated topic in the news again today. should sports betting be

allowed? adam silver put a op-ed in "the new york times" in favor of the movement today, saying times have changed and so should the law. well, with us here at the new york stock exchange now is joe torre, hall of fame baseball manager, current executive vice president of operations for the mlb. welcome. >> thank you very much, kelly. >> we want to talk butt your safe at home foundation. first of all, do you think it's true to keep up with the times we should now legalize sports betting in this country? >> it's tough stuff. i mean, you have it in vegas. you can bet on sports. you know, to me, it's really tough to ignore, you know, all the technology that's available. you know, pete rose is still suspended for betting on the game. and, you know, i guess it's up to each individual sport to basically police their own people. i don't think we're going to be able to avoid it at some point, whether it's now or a year from now. so i think it's something that we're just going to have to be

ready for. >> and if that happens, what does then happen to the pete roses of the world, do you think? >> well, pete rose -- first of all, even though he had sports betting, it doesn't mean the people who play that sport can bet on their particular sport. and that certainly is dangerous. and right now, there's so much betting going on in certain sports that, you know, i guess legalizing it would really take some of that money out of the hands of the illegal sports betters. >> as a manager, how much did this topic come up within the organization, within the mlb? was betting a big topic or not really talked about? >> every spring, we have a number of meetings for a ball club. you know, people come in from the security department, you know, from our investigative department, and as soon as you walk in, and that's why when they talk about pete rose and the betting part of it, there's this big poster that we have about betting. and just the integrity of the game. that's the one thing i think all

sports want to preserve, is the integrity of their game. and i know they said pete rose, you know, never bet on his team to lose. but the days he didn't bet on his team to win, what does that mean? so it's a dangerous spot. >> i want to congratulate you first of all on raising another million dollars or so, is that right, for your charity? >> yeah, we raised close to a million dollars. and, you know, it's my passion. i was raised in an abusive household. my dad abused my mom. and we established our safe at home foundation. this is our 12th dinner. we put safe rooms in schools. and it cost over $100,000 a year for each school room that we named after my mom, margaret's place. >> do you worry -- we were just speaking about the legalization of pot across this country. do you worry that things like that, as we try to become more comfortable with decriminalize it, that it will encourage more

domestic violence at home? >> well, drinking is a big part of it. and my dad wasn't a drinker. he was a bully, and he brutalized my mom. i never got physically abused, but i was certainly felt the fear, and i really didn't understand it until i got a little bit older and connected the dots. but i can't tell you that. i mean, the fact that there's any kind of thing that's going to influence your behavior -- >> that way. >> but again, i think sometimes that's a place to hide. to say i was drunk, it doesn't really count. it counts. >> joe, as a longtime red sox fan, i'm so conflicted here. because i love what you're doing. >> that's why they sat you over there. >> you're doing such a great thing and i really applaud you for it. but does this open the door for revenue? we don't need another casino out there. we've got enough casinos in the world. but does this pave the way for revenue to come in? >> very briefly. >> well, to do great things, i'm

onboard with that. whether that's the reason we get it, or if that's how we get it, i really can't respond to that. >> joe torre, please come back and explain what happened to the yankees next time, if you could. we appreciate you being here. really. joe torre, again, raising money as well for "safe at home." and to the panel, thanks as well. have a great weekend, everybody. and "fast money" begins right now. see you on&. >> live from the nasdaq market site in new york city's times square, this is "fast money." i'm melissa lee. we have pete, brian, josh, and guy. it has been a solid year for the biotech trade, but those stocks taking a beating today. could this be the start of an even bigger pullback? plus, following the smart fun. they are out and several top hedges are loading up on one high-flying tech name. the details straight ahead. but first, it might have seemed like a quiet day on the markets, but the real move was in gold. ending the day higher by just under 2.5%. is this the beginning ofol