Closing Bell: 11/2/26

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0:57Scott Wapner: All right. Welcome to Closing Bill. I'm Scott Wapner, live from Post 9 here at the New York Stock Exchange. This make or break hour begins with the countdown to some pretty serious earnings in overtime. Apple and Palantir both reporting. The setup on both names is just ahead. Let's show you the scorecard here with 60 to go in regulation because what was a mostly green day, not so much anymore. Yes, the Dow is positive by two thirds of one percent. You have had some nice moves in the cyclical areas of the market outside of technology, financials, industrials, materials, discretionary leading the way today.

1:30Scott Wapner: Amazon is helping the discretionary place, but you've got some real weakness developing in tech. You notice that the NASDAQ has gone negative, but take a look at some of these names. So Intel's down. NVIDIA's off substantially. Taiwan Semi Broadcom could show you a lot more. AMD is weaker. Some of the software names as well. There's the deal of the day. Marvell is buying an all stock for Lumentum. Investors don't like either part of this, apparently, because both names are off sharply. Take a look at Oracle as well. CoreWeave is at a low. That stock's down almost 8%. Oracle's down a little bit more than that.

2:07Scott Wapner: We're going to talk about all of that as we take you through this final stretch in what has been a fairly dicey trade. We begin with our talk of the tape, those big names reporting in overtime. I'm Mackenzie Sigalos in Cupertino on Apple. Seema Modi's following Palantir. Mac, we're going to begin with you. Scott, Apple coming into the print at 37 times forward earnings, a rich multiple for a company that's increasingly become a hedge against the rest of the AI trade. When its mega cap peers sold off last week, Apple moved higher as investors looked for somewhere safer to park money inside the Mag 7.

2:43Now John Ternus has to show continued momentum as Apple comes off a blockbuster iPhone 17 cycle and pushes further up market, leading the way with two untested offerings for the company, a touchscreen MacBook and a foldable phone right as memory costs continue their surge. Another big headwind here. It's high margin services segment showing some softness with App Store trends slowing down. Duo demand looks extremely strong, but regular pro lead times are coming down, really raising the question of how much of this iPhone growth is coming from selling more phones versus charging more for them. Expect the new CEO, John Turnis, to get questions on duo production and those crack display reports and how he does in the face of his first Wall Street grilling.

3:28Scott?

3:29Scott Wapner: Be interesting to watch, no doubt, beyond the numbers. Mac, thank you. Now to Seema on what we should know about Palantir heading into another very popular stock. Yeah, Scott, the key question on the street is whether Palantir's growth can continue to accelerate. Last quarter, it reported an astounding 149 percent jump in commercial sales as more companies adopt its AI platform. At that moment, Palantir's stock shot up its biggest one-day move post-earnings. Since then, CEO Alex Karp has been hosting events across the U.S. with customers echoing a message he has made on CNBC that if you work with the Frontier Labs, you risk losing your IP.

4:03and that working with open source and Palantir places your software on top of its business. The stock remains an outperformer, raising questions about valuation online. There's been a lot of talk about whether there's a stock split or a dividend, whether those two things could be in the cards. JP Morgan out with a bullish note, saying that valuation is reasonable at current levels when taking into account the company's uniquely profitable hyper-growth fundamentals. The other big topic, how is the war and a potential rise in geopolitical tensions with Iran creating a bigger business opportunity for Palantir.

4:36Remember, the U.S. government does use its technology, Scott.

4:39Scott Wapner: OK, Seema, good stuff. Thank you. Seema Modi. Now let's bring in Yorkville Ives' Dan Ives. Capital Area's Malcolm Etheridge. Humanist is Brian Belsky. Malcolm's a CNBC contributor. It's good to have everybody with us. Dan, I'll begin with you on Apple. There's a fair amount of skepticism going in. What about from you? I mean, I continue to view his glass half-full because this is fraternist. This is about the hardware innovation error that's now coming to Cupertino. And it's at a time where we see strength relatively in China. You have an iPhone cycle. You still have three, 325 million that haven't upgraded in over four years.

5:18And then AI, they finally now have an offering. I'm not saying it's open AI or anthropic-like, but you have 1.5 billion iPhones, 2.5 billion iOS devices. I believe they will be the toll collector on this AI consumer highway. That's$75 per share. That's why I continue to like this stock.

5:38Scott Wapner: But the here and now is sort of undeniable, right? Slowing iPhone growth, decelerating service revenues, margins being squeezed because of memory costs. And at 36 times, 36 times. So you can justify that valuation based on those three important metrics that I read off? Yeah, and Scott, I think that's obviously the debate right now. In my view, it's about what the monetization piece is going to be from AI. Because I believe services, that will be 15 % to 20 % overall services revenue over the next 18, 24 months. I mean, if you're a bull like ourselves, that's the thesis. The near, you obviously have some headwinds and they're showing significant growth relative on iPhone.

6:29Service is still double digit. But this is about the AI era, and it's going into what will be the 20th anniversary year for iPhone next year. And it's about Ternus, the innovation cycle, bringing it back to Cupertino with AI-enabled iPhone. I think that's going to be the future. Duo just starts this innovation cycle.

6:51Scott Wapner: But you can be a bull and still say that 36 times, given the metrics that matter most, doesn't necessarily make sense in the here and now, can't you, even if you're bullish on the big picture? You can, no doubt. I just, I think on some of the parts, this is between a$4 to$450 stock on some of the parts, given my view of where the AI piece is and the services, the incremental monetization. Brian Belsky, Apple is your largest tech position, OK, within a handful of your portfolios. I mentioned the skepticism going in. Dan Niles on X says, I'd be wary into earnings that are likely to provide lower than expected guide for the December quarter.

7:35Scott Wapner: Barclays reiterates underweight iPhone uncertainties this cycle, limited monetization of AI, renewed fears on the App Store. Oppenheimer talks about what I was talking about, the premium multiple and really momentum that seems to be uneven in their view. What about your view? Well, Scott, thanks for having us. First off, on the 36 times, I think the stock is clearly receiving that premium because of cash flow. This cash flow on this company is a cash flow juggernaut. $136 billion of free cash flow where the rest of the MAG7 names, especially Microsoft, Google, Amazon, have been negative free cash flow.

8:17Meta too as well. I think the company's trading at a premium principally because of that, number one. Number two, its earnings consistency hasn't missed a quarter since 2022. And that was coming out of the inflation side of things and COVID. And then lastly, Dan said it best. This is about the ecosystem. This is about the ecosystem. Their whole operating metric is all about feeding into the ecosystem. That is why they didn't get ahead of everybody else in terms of spending all this money on AI. And they focused on integrating the ecosystem's AI. And then lastly, I'd say from a longer term investor like ourselves, I've owned this stock in one of those portfolios you mentioned for 14 years.

9:00This is the Mac daddy of technology companies. Jensen may be the godfather, but this is the Mac daddy, and you have to respect what Apple's been doing.

9:09Scott Wapner: So, Malcolm, they're not having any of the skepticism. You clearly hear that. What about yours? Yes, Scott, I think what makes this so challenging right now is that everybody is right in a way. I think that you're right to be skeptical. You're right to be skeptical of the valuation, specifically when Apple is trading at basically double what the S &P is trading at right now, with no consumer-focused AI tool that we can interact with right now in sight, right? So they're definitely been helped by being late to the party in terms of building out for the thinking side of AI. But they really need to be leaning in hard to the doing side of AI right now, because where Meta has shown that there's plenty of things that AI can do for you as a consumer, they've only got about 10 million people who are using this thing on a weekly basis.

9:59You heard Dan tout the two and a half billion installed devices globally. That is where the TAM is for Apple right now. And so we've been giving them a lot of leeway. We've been giving them a lot of room to wiggle around and figure out what's going to be the right solution. But I think the clock is ticking very loudly, which I think is the point that you're making. The iPhone sales globally trending downward doesn't help them right now. So they're going to have to be able to tell a really good story about why it's worth holding on to these shares after the print, even though we've been looking at them pretty much as just the safety trade right now in comparison to all of the hyperscalers doing all of that spending.

10:35Scott Wapner: That's a good point you make by saying the safety trade, because that's exactly where I want to go next. And I'll do it with Brian Belsky. Both you and Dan Ives paint a picture in which you can continue to play offense in this name. But I wrote down three B's, OK, as a reason why people continue to play defense in this name, despite some of the concerning metrics that I read off earlier. Balance sheet, buyback and the benefit of the doubt. Right. Those present opportunities to have a port in a storm in a case where you'd say, well, the bread and butter growth, their phone slowing services, is revenue, most important part of their business outside of the actual physical phone, slowing, margins, slowing, and yes, an ability for pricing power, but who knows by how much.

11:29Scott Wapner: So how would you stack all those up in how you should really think about this? Well, unfortunately, with your three Bs, you could have added liquidity, right? I mean, this stock is the largest company in the world, back and forth between itself and Nvidia. It trades very consistently. I mean, at the end of the day, I really believe that these fears with respect to the AI spending is real. And at some point, the CapEx is going to slow. But if you think about how Apple's run their company for decades now, again, it's about investing inside the ecosystem. That's why all this stuff about Muse and Meta didn't work out.

12:10That's why the stuff with respect to going out in the marketplace and borrowing all this money on the AI spend. They were penalized at first when everyone was so excited about all the AI spend. And then people went into the company again because of liquidity, because of the earnings consistency, because of the balance sheet. So they're getting paid for their steadiness. And I think that's going to continue, Scott. And I think it'd be very, very dangerous to be trading around the quarter on a company like this that has clearly put up the numbers longer term.

12:42Scott Wapner: Well, I mean, it's why Kramer says own it, don't trade it. But that doesn't give you a free license under any valuation perspective to just do that without raising some of the interesting questions that abound. Before I say goodbye to all of you, I do want to move to Palantir for a minute. Dan Ives, how should we think about this name? OK, the valuation is at a premium. I thought, You know, SEMA's report nailed it 106 times. Do we get a split? I don't know. She raised a question. Some are talking about that, a dividend. All on the table. How do you think about this? I mean, I view this as one of the biggest barometers for the AI spending trade.

13:24Because when you think about what's going on here, the hyperscale or build out, okay, that's foundational. But the use cases are happening in Palantir. And that's why the commercial growth, which we expect to be well ahead of the street even going into the next few quarters, that is important, not just for Palantir, but the broader tech trade. And I continue to think this is one free cash flow. When you look out the next few years, it is not expensive. I mean, we've talked about 250 as our price target, but I believe this is going to be a trillion-dollar mark cap in the next few years. And that's why it's a special name, but it's also it's a barometer of overall spending on AI, the use case.

14:04It's this and the hyperscalers, very, very important for the broader tech trade.

14:08Scott Wapner: It is, Brian, in some respects, a special name. It's a closely followed stock. It is, as Dan says, in the heart of all things that seem to be circulating around AI. You own it, right? Yeah, we do. and it actually follows one of your B's that you talked about before, Scotty, in terms of balance sheet. This is a company three years ago that had$321 million of free cash flow. Now it's got$3.3 billion. So it's not unlike Amazon. Remember for years, nobody would buy Amazon because it was such a high multiple. The multiple has actually dropped 15 multiple points the last two years because the earnings are coming in.

14:48So if you're worried about AI security, I mean, this is the company that you want to own in terms of defending security measures on a software basis.

14:58Scott Wapner: Guys, we'll leave it there. Appreciate everybody's time. We'll see what happens shortly after 5 p.m. when those Apple earnings hit the tape. And we'll obviously be watching closely for Palantir, too. We'll see all of you soon. I do have breaking news from the Treasury. Our senior economics correspondent Steve Leisman has that. What do we need to know here, Steve? Yeah, Scott, the Treasury announcing that it expects to borrow 800 billion dollars in the first quarter of 2027. That's a little higher than some of the estimates that I had seen going into this, and I'll explain why that is in a second.

15:26It said it borrowed 742 in Q3 2026 and expects to borrow 618 this quarter. That is in line with the estimates. Now, here's the deal. The Treasury thinks its cash balance or estimates its cash balance will be$1 trillion by the end of March 2027. That's higher. That explains some of the higher borrowing that's out there. But there's also a sense in here that perhaps the deficit will be higher and cash flow will be worse in the first quarter. The 10-year, just up a tick on this, Scott, because the 10-year, if you go back to Friday, it has really been consumed by the decline in oil prices. That's the big story when it comes to it.

16:03But ultimately, the Treasury is saying, borrowing for the first quarter of 2027 in our first look at it, looks like it'll be a bit higher than had been estimated out there in the street. Scott?

16:12Scott Wapner: Yeah. I mean, to oil, you're down 7.3%. It's the worst day for crude since late July. Your points well taken. I appreciate the news, Steve. Thank you. Yeah. Yeah, exactly. Depending on how you look at it. Steve, thank you. That's Steve Leesman. To our panel now, Trivariates, Adam Parker, Hightower, Stephanie Link, JP Morgan's Gabriela Santos. Adam and Stephanie are both CNBC contributors, one and all. Welcome, Steph. You first. All right. I mean, I know you have problems with Apple's valuation. Yeah. But let's not talk about it specifically, but in the context of where it matters to the overall market as we begin this new month after a quite rocky one in October?

16:51Well, it's about 7 % of the S &P 500, so it's a big waiting for sure. I think it's going to be fine. I just don't think it's going to wow a lot of people. I don't know if this report is going to lead to new investors buying or existing investors buying more. You mentioned it a couple of times, 36 times for slowing iPhone growth, which is 50 % of their revenues. Slowing growth. This is the second quarter, or excuse me, this would be the third quarter of slowing services growth. I think margins are going to be fine. I think they de-risked the month of Biden. So I think that'll be all right. But I just think for like double digit, low double digit earnings, I have so many other names.

17:28I have so many other tech stocks that are down a lot too.

17:30Scott Wapner: I know you do. And there are a lot of tech stocks that are down, which, you know, Gabriella, they had a rough month, obviously. Okay. We turn the calendar page to a much better one. In fact, as UBS was pointing out today, it doesn't get any better than November. Index has gained 1.9 percent on average since 1950, the best month of the year for equities. And over the last 10 years, there's only been one instance of a negative November. You've got to go back to 21, so five years ago. Is the table better set for November? I think so, after we've had quite a deterioration in sentiment around the AI story in October, which had followed pretty closely after we had that big correction in momentum in July.

18:11So you didn't even have a chance for sentiment to rebound. I like looking at the gap between momentum and quality as a measure of how excited or euphoric the market is about the AI story. In late June, momentum was outperforming quality by 32 percentage points. So no surprise you had that July correction. If you look now, that gap has almost closed. So I do think sentiment has deteriorated quite a lot. Investors have rightly focused back on quality. There's a lot more dispersion within the AI-related industries now. And so we're kind of on the other side, where maybe if we start getting from some of these hyperscalers a sign that free cash flow is bottoming and that we could be on the other side, plus attractive valuations, that could make for a better rest of the month and end of the year.

19:03Scott Wapner: You know, AP, you also enter November, albeit only one day sample size, with a better quality broadening, if you put it that way. The broadening that we've seen, you know, of late was defensive. Staples, utilities, things like that. Healthcare, for example. Today, discretionary is up 2.5%. Now it's getting a nice boost from Amazon. We put that on the table. But materials almost 2 percent, financials almost 2 percent, industrials near one and a half percent. Are we poised for that really taking a greater hold? Look, broadening in up tape is certainly a lot nicer than broadening in a down tape. Right.

19:45You know, I think it's what we always want is, you know, to have more businesses doing well. I think it's probably more just a shorter term rotation. I'm not in the camp that the tech trade is over. I agree with Steph's comments up front, of course, that Apple just will have less volatility. It's probably fine. It's not cheap. All that I agree with. It just has less levered ETFs and less people paying zero-day options. There's a lot of triple-long NVIDIA and double-long Hynex and Micron. So those stocks just get a lot more volatile on their prints. I don't expect a double-digit move either way on Apple's print, to be honest with you.

20:21You know, on the broader trade, I still think the tech trade is going to end up higher. But what we've learned for sure is you have to diversify away from it, whether that's in health care or it's in energy or materials or industrials that participate.

20:37Scott Wapner: That's the one thing, as we talked so many times, Steph, about broadening. But right. Always a broadening. But it's been so defensive. I mean, this is kind of what you're hoping for, what you've been looking for, and I guess what you've been buying into. Yeah, I mean, especially since rates have come down 36 basis points and are under 5, the 10-year anyway, and GDP has actually gone higher. We're at 3.4%. I don't know what the final number is going to be, but 3 % plus is great. And earnings, 50 % of companies that have reported so far have reported 25 % earnings growth, 12 % revenue growth, and it's been broad-based.

21:12And in October, the S &P 500 was down 93 basis points. But 9 out of 11 sectors actually rose. 327 out of 500 stocks in the S &P 500 actually rose 2 % plus. And it wasn't all defensive. So I think that, though, you could sell some of the defenses that they've had a nice run and they're now getting expensive again, and find some of these cyclical companies that just reported phenomenal numbers.

21:38Scott Wapner: Some say you're about, Gabby, to get into a better place in the market. We can sort of understand the Fed's road ahead. We don't think they're going to have this prolonged hiking cycle. That would be a game changer. Rates to Steph's point have come down. Maybe the midterms are a clearing event. You get seasonality on your side, and then you can have a decent finish to the year. That's kind of what Ed Yardenny's counting on. Maybe a little bit of rough stuff here and there, but he says 7 ,900 year end is still intact. Santa's coming. That's what he wrote. What do you think? I do think we're past peacockishness for the Fed.

22:12You've had a huge repricing of December 2027 rates coming into the year. They were at 3 percent. Then they got to as high as 5 percent for the end of next year. That's already been priced in. And I think investors are probably going to be more dovishly surprised by the Fed from here. We do think growth is quite resilient, even absent, you know, some of the more short term lived sugar rush from the middle of the year for the consumer. It is, though, not inflationary growth. And I think we'll see that on Friday with the jobs report. Wages growing 3 percent nominal. That's nothing that should worry the Fed.

22:49And so we honestly just think one more hike. And it's a good thing to see that the two year finally had a negative month last month for the first time really since February. and the biggest fall in yields that we had seen since August of 2025. So I think we're on the other side for rates.

23:07Scott Wapner: Adam, clearing event next 24 hours, get midterms out of the way, get back to business, focus on what the final stretch of this year can actually bring? I think so. I mean, in the last 10 days, I haven't heard as many institutional investors talk about the midterms. I think the peak, Gabrielle mentioned the peak hoggishness might be behind us in the Fed. But I think the peak concern about the midterm was probably behind us also. I think we'll get back to focusing on the fundamentals. And I think that the Christmas gift you're talking about is maybe even not that good. You know, 7 ,900 might be too low.

23:39I could see us having more than a 5 % move higher once we get some of the clearing events. And we focus back on the earnings. And I think Steph's point is a great one. You know, we made the same point in our note. Only comp services with Google and tech were down last month. So I do think that's probably a better indicator. Corporate earnings and economy are pretty good. So I like equities. I think you want to take some more risk. And I don't think the AI trade's over, but I think there are other things you own. And I agree with that last comment, too, that, you know, I don't want to buy some of these expensive defensives.

24:08To me, the moves in some of those are a little bit too high.

24:11Scott Wapner: So if you save some money by going there, I'd probably sell that and add some more cyclical offense. I agree with that. We need to remind ourselves how good earnings have been and are still, even if the price action doesn't necessarily match the numbers on the prints. And we'll deal with all that. Everybody, thank you. It's good to have everybody with us. To Julia Boorstin now for a look at the biggest names moving into this close. Hi there. Scott, shares of Oracle sinking 8 % after filing plans to issue new stock and more debt to finance its AI buildout. The database software giant will sell$10 billion in common stock and$10 billion in senior notes.

24:45It follows continued fears about AI build-out costs and financing. The stock is down 38 percent so far this year. Marriott shares are up 4 percent after posting third-quarter results that came in above Wall Street estimates and raising its full-year outlook. The hotel giant sees increased demand, especially higher room rates and occupancy in the U.S. and Canada. Shares are up 33 percent so far this year. And both Lumentum Holdings and Marvell Technologies sinking over 10 percent After Marvell agreed to buy the maker of high-performance lasers, the all-stock deal is valued at$115 billion and is expected to close in the first half of 2028.

25:25Marvell, though, is up 101 % so far this year, Lumentum up 86%. Scott?

25:31Scott Wapner: Not a lot of love on either of those names today, Julia. Thank you, Julia. Forstin, we're just getting started coming up. We have new details on Anthropic and OpenAI's big race to go public. We're live at the New York Stock Exchange over this final stretch. We're back on closing bell after this.

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27:19Scott Wapner: Welcome back. New details today about Anthropix moved to go public, the company releasing its amended S1 today. Our Leslie Picker has more on that angle of our story. Hi, Les. Hey, Scott. Yeah, Anthropix updating its prospectus to include Q3 numbers earlier this morning. we learned that on the top line, Anthropic generated$17 billion, an 1 ,100 % jump year over year, but about 47 % quarter over quarter. And although operating income was positive during the second quarter, that flipped into losses during Q3 as the cost for compute and infrastructure nearly doubled to about$10 billion. That was underscored by Anthropic's efficiency metric of revenue per dollar of compute, which appears to have peaked, at least in the near term in Q2, but ticked lower with the numbers disclosed today to 172.

28:12Now, that efficiency metric is important because Anthropic also gave more information today around its future commitments, expenses that haven't yet hit the company's financials. In total, these amounted to about$895.4 billion, dollars, Anthropic said, which almost entirely consists of compute and infrastructure. The company outlined a schedule for when these payments are due. And in 2026, they amount to just over$5 billion, and then they ramp up to$29 billion in 2027, and then$44 billion in 2028, and then so on and so on. And so the key question investors will want to know is how investors, how their top line growth will keep pace with the growth in future expenses and how much capital will need to be raised after this IPO to also make sure that those obligations are fulfilled, Scott.

29:04Scott Wapner: All right. Still lots of questions, Leslie. Thank you, Leslie Picker. At the same time, word this weekend that OpenAI is slashing its next funding round. Kate Rooney, following that money, joins us with those details. What do we know here? Hey, Scott. So from what we're hearing, OpenAI is dialing back its fundraising target amid all of this tech volatility you've been talking about. Sources now tell me that Chad GPT maker is looking to raise up to$20 billion. That is a change. It's down from an earlier target that we reported, which was up to$30 billion. They are still looking at a$1.25 trillion valuation that is before the new capital is accounted for.

29:40So what's known as pre-money in terms of that valuation. It is still a jump in the price tag. If you compare the last pre-money valuation, It was around$750 billion. We did report the CO2 and the UAE, some of the sovereign wealth out of that country, are leading this round. The round has not closed yet. A person directly familiar with the deal tells me, as always, these private market deals and numbers could change. So we'll stay on our toes here. The FT first reported that lower target said some investors have also cut their allocations to OpenAI. If you remember, last raised a historic$122 billion back in March.

30:15Sources I've talked to have described this current round as a more opportunistic bridge round ahead of an IPO. They have filed confidentially. And from what management is signaling behind the scenes, they do plan to list in 2027. The timing is key here, though. Recent AI jitters have been spilling into private markets, as we're seeing. You have a lot of these crossover funds in the later stage deals like this. And so any signal of weaker demand in private markets also puts a bit more pressure on these companies to get out their IPO and tap public markets. It also comes, as Leslie mentioned, Anthropic is looking to debut in what could be a choppy market, especially after tech earnings last week.

30:51Scott, we'll see how the next couple of weeks go for Anthropic.

30:54Scott Wapner: It would be interesting timing nonetheless, Kate, right? I mean, just given what's happening with the market, the fact that these companies have waited a good while now to go public, the later you get into the year, if you're still having an upset AI trade in the market, it's going to make it all the more interesting. Yeah, Scott, the biggest thing that investors are watching right now is market sentiment. We were talking about the calendar early in the year. You know, this summer was coming up and we were saying, OK, hold on. They need to list before Thanksgiving. They've got to get it out before Christmas.

31:24So there were all of these different shot clocks. The biggest thing and the biggest pushback we got was it's actually really not the calendar for an IPO this big. It is market sentiment. And until I would say last week, it was really, really positive. And there were some cracks in that. So that's going to be one of the biggest factors weighing on this listing. is kind of what's going on with the MAG7 and the AI trade, just overall demand. But the open AI story, too, just says it all, that you're seeing this spill over to private markets. You would have to think as part of that, that that is going to spill over to IPOs as well.

31:54In terms of demand, you've got rates. What are people willing to pay for AI and willing to pay for growth? As there's just new questions, Scott, over if the spending is paying off. I think it's still an open question.

32:05Scott Wapner: Yeah, you raise all the good ones, too. Kate, thanks. Kate Rooney coming up. A rare interview with Raiders owner Mark Davis. his vision for the team's future in Las Vegas, and much more when we come back.

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33:48Scott Wapner: Fresh off his Raiders 38 to 33 win over the New York Jets on Sunday. Las Vegas Raiders owner Mark Davis sat down for a rare interview with CNBC's Michael Ozanian. Mr. Davis spoke to him about the high profile group of ownership he's assembled to help shape the Raiders future. Listen. leaving Oakland, coming to Las Vegas, that we were going to have to build the infrastructure of the organization. And I felt that Egon was the right person to help do that. Bringing in Egon and Mike, then obviously Michael Dell, Burrata, Ari Emanuel, Mark Shapiro. Each one of those people has a skill set that I feel can help the Raiders become one of the great organizations, again, in not only sports, but in the world.

34:36And they all have different different things that they bring to the table that I think makes us really in a good position to move into the future.

34:44Scott Wapner: CNBC Sports senior reporter Michael Ozanian, there he is, joins us now. He didn't go the what now has become the traditional route of investments from others who want a small piece of this team, has he? No, Scott, you're absolutely right. And that's the big takeaway from the investment standpoint. Mark Davis has essentially swapped dollars that is selling these LP stakes to those investors he mentioned at discounts to what he could have gotten had he sold it to private equity. What he really brought in was expertise. Despite the fact that the Raiders have the third highest revenue in the NFL, there's a lot more room for growth.

35:20And if you look at these individuals, whether it be technology from Silver Lake Partners, whether it be marketing and branding from the guys he brought in from TKO Holdings, to Tom Brady, who advised him a great deal, for instance, on the football side and with Fernando Mendoza, drafting him number one overall last year. He's really building the future of this franchise. So I think long term, he set this team on a path to continue financial success and what he hopes will eventually be success on the gridiron.

35:53Scott Wapner: What counts for the 13 billion dollar valuation, which that was the latest number that we all had. But I don't know, that might have changed since we did these numbers the way this is all going. What accounts for the whole thing? The stadium we're looking at on the screen now, they own that, right? They don't own it, but they operate it year round, which means they control the economics. and what they've done a very good job at is not just maximizing NFL revenue, but also revenue from things like concerts and other types of events that they can have there. And I think as you're seeing more heated competition in the Las Vegas market, so you had prior to the Raiders, the Golden Knights and the NHL, you're going to have an NBA expansion team there.

36:36You're going to have a Major League Baseball team there. You have the aces of the WNBA, which Mark Davis already owns. He wants to be on top of the game. And particularly with technology, you know, you look at the new owner of the Seattle Seahawks. That's a guy with expertise in technology and A.I. Mark has added investors with that type of savvy to the Raiders. So to use a bad pun, he's staying ahead of the game.

36:59Scott Wapner: Yeah. I mean, you said something that I didn't realize. So they don't own the building, but they control the economics. So they're getting all the benefits that one would have anyway if you owned it. Is that in some ways a potential new model moving forward? It's some teams, the Dallas Cowboys, you know, same thing with Jerry Jones. You know, he does tremendous with AT &T Stadium. In some ways, if you can control the operating rights, it's better than actually owning it. You know, you don't want to own a depreciating asset per se. But, you know, the Las Vegas, the state does get a revenue stream from the building as well.

37:37It's been so successful that the state has gotten its money in terms of helping to finance the stadium. A lot of private money went into it as well. But this type of model is something that you're going to see teams like this is something similar to what the Browns, they're trying to get a new stadium. The Chiefs have come to terms on a new stadium. They're not going to own the stadium, but they are going to control the economics, which is what they want to do.

38:00Scott Wapner: Well, it's a great get. He doesn't do very many interviews. Of course, it helps that I think he just had to travel a little bit down the street or across the river. After a win, too. Yeah, which looked improbable for a little bit. But it was a good comeback. So we appreciate it. Good get. All right. Be well. That's Michael Zaney. And up next, we track the biggest movers as we head into the close. We're back after this. Ten to the bell. Back to Julia for the stocks that we need to watch. What's on your list? Well, Scott, Rivian Automotive jumping 8 % after UBS upgraded the EV maker to buy from neutral.

38:33Analysts there say Rivian's recent sell-off presents a buying opportunity ahead of an inflection point in sales of the R2 midsize SUV. shares are down 33 percent so far this year. SpaceX up two percent after The Washington Post reported it's in talks to buy Dish Network's Boost Mobile subsidiary or use its network. A deal would give CEO Elon Musk a path into the 235 billion dollar wireless market. And shares of Ryanair are up three percent. The airliner CEO told CNBC this morning it expects European plane ticket prices may climb as much as 20 percent next year as jet fuel prices continue to rise.

39:14Oil prices falling today, likely causing shares to rise alongside other travel names down 23 percent so far this year.

39:21Scott Wapner: Scott, Julia, thank you, Julia Borson. Coming up next, big test for Apple preparing to report earnings in overtime is the first report under its new CEO. Speak with the shareholder inside the market zone, which is coming up. All right, we're now in the closing bell market zone. Mike Santoli here to break down these crucial moments of the trading day. Pippa Stevens looking at the big move in oil and is pushing ahead to Diamondback earnings in OT. Plus, we have full team coverage heading into those Apple results, which are just moments away. Oliver Rennick is live from the SIBO global markets in Chicago with the options trade and Apple shareholders.

39:56Scott Wapner: CNBC contributor Odyssey's Jason Snipe has his expectations as well. What stands out to you the most, Mike? New month, same questions for the most part. For sure, Scott. You know, we spoke earlier. A lot of things were working in the market. The S &P had almost a 1 % bounce off of Friday's low. But semis were not participating, and we talked about it at the time. And it seems like it's a tough thing to overcome, especially on a day when you don't have Apple playing its usual role of offsetting any weakness in semiconductors. It feels like that kind of failed bounce attempt is giving people yet another reason just to stay risk averse and stay back on their heels.

40:34We obviously have the election tomorrow. You do see some measures of hedging and other types of stress building up a little bit here. But we haven't been able to capitalize except in the defensive sectors on this idea that we've done some damage, oils down and rates are tame. None of that is working together, mainly, I think, because the AI trade remains suspect.

40:55Scott Wapner: Yeah, speaking of, I mean, Apple and Palantir, both important. Apple not so much, you know, tied as a hyperscaler. But nonetheless, Palantir's commentary on the whole AI complex is going to be closely watched. It will. And it obviously occupies a very interesting spot there. They're kind of a layer in between, you know, companies and governments and the raw models. So I do think how the market receives the growth rates of stocks back to where it was kind of in January at this point. So you would think that the decks have been cleared to some degree. hasn't really worked, though, that playbook this earnings season.

41:26I think that might be why Apple is down, too, not because people expect a bad number, but because these big companies have not generally traded well off of their results.

41:34Scott Wapner: Yeah, you'll have it all in overtime, obviously. We'll look forward to that, Mike. Thank you. That's Mike Santoli. Let's go to PIPA, this huge move in oil today, and also looking ahead to Diamondback. What do we need to know? Well, Scott, oil was sinking today amid reports the U.S. and Iran are open to negotiations, a shift from last week when WTI and Brent posted four straight weeks of gains on the back of post-midterm escalation concerns. This is not a great day for a driller to report, but Diamondback is on deck. Top of mind is production targets, given the company bucked the overall trend of discipline, saying they would increase output.

42:04Investors will also be looking for an update on how the company is managing cost inflation, including around steel and diesel, and how that influences CapEx. Finally, last quarter, Diamondback said they've been working on a data center deal with a hyperscaler, and they would give a larger update once the documentation was signed. The stock has trailed the broader upstream industry this year, so some clarity around that, Scott, could help move the shares.

42:26Scott Wapner: All right, Pippa, thanks so much for that. That's Pippa Stevens. Let's go to the CBO Global Markets in Chicago for some options action on Apple. What do we know? Rare anxiety in Apple options, Scott. Of the one million contracts traded today, 700 ,000 were puts, or 1.8 puts per every call, which is the highest put-call ratio for Apple all year and by a long shot. And the price of Apple puts today surged to this 97th percentile of the past year relative to the price of calls. Now, keep in mind, because Apple has been the big tech safety trade, its vol has been low. So options have been and still are, even ahead of earnings, the cheapest of any Mag 7.

43:12Its implied move of 4 % is big by Apple standards, but not by other big tech. So in other words, the message here may be that Apple puts are a low cost relative, no brainer opportunity to save yourself in case this very big$5 trillion levy finally breaks.

43:30Scott Wapner: All right, Oliver, thank you. That's Oliver Rennick in Chicago. Let's bring in Jason Snipe. He's the shareholder. How do you feel going in? Yeah, a little bit concerned, Scott. Obviously, this has been the defensive trade in the hyperscaler place. So the stock is up 24 % year to date. The concern for me is decelerating margins, decelerating services business. And I think that, for me, as I look to two quarters ago, the services business was up 16%. Last quarter was 12%. And this quarter, the guide is for 10%. But revenue growth is going to be around 11%. We got close to$2 in earnings. They need to continue to figure out how to manage memory costs.

44:14Obviously, they've raised prices across their wearables and their products. So that, for me, is some of the things that I'll be watching as we go into the print in just about an hour or so.

44:26Scott Wapner: Yeah, I mean, it's a lot of issues, obviously, some of which you mentioned. The prevailing thought from the bulls, like Dan Ives, for example, who we talked to at the top of the show, is you just got to be patient. They're going to do everything you want them to do. The numbers are going to be everything you want them to be, but they're not going to be that tomorrow. Right, right. And I think that for me, the one thing I didn't mention earlier is the guidance is going to be key, right? So there's only nine days of the iPhone 18, which we'll see in the September quarter. But the guidance going forward, which the duo will be squarely a part of.

45:01So for me, as we look to the holiday quarter in Q1 of next year, that's really what's going to be important to me as we're looking at close to$150 billion worth of revenue.

45:11Scott Wapner: All right. We'll see what happens around 5-ish shortly after, and we'll see how the stock trades. Jason, thank you. That's Jason Stipe getting ready to ring the bell. And what was a green day across the board to start the month of November has certainly changed a little bit as we edge towards the close. A very good day for the cyclical areas of the market outside of tech. Discretionary and the financials, materials, and things like industrials. Have a good day, but not so much with inside tech. A lot of the shift names are lower, all leading into those two-key earnings reports. Both Palantir and Apple moments away.

45:45Scott Wapner: We'll send it in to O.C. Introducing Fidelity Trader Plus, the next generation of advanced trading from Fidelity. Customize your tools and charts and access them seamlessly across desktop, web, and mobile. For faster trades anywhere you go, try the all-new Fidelity Trader Plus. Learn more about our most powerful trading platform yet at fidelity.com slash trader plus. Investing involves risk, including risk of loss. Fidelity Brokerage Services, LLC. Member NYSE SIPC.