tv Closing Bell CNBC June 12, 2015 3:00pm-5:01pm EDT
we've got the trade along with our biotech reporter meg terrell. >> thank you. have a great weekend. the dow getting weaker as we head into the last hour of trading. down 164. nasdaq down. will the weekend with a whimper? we'll find out with "closing bell" which starts right now. hi everybody, happy friday. welcome to "closing bell." i'm coaly evans at the new york stock exchange. >> scott wapner in for bill griffith. stocks struggling into the last hour of this trading week. new data shows emerging market funds having the biggest outflows since 2008. we'll discuss how to position your portfolio before next week's key fed meeting. >> eli lilly shares pulling back today after excitement over its alzheimer drug set the stock into rally mode. lilly shares down about 3%.
>> just breaking in the last hour, youtube launching a new gaming app. we'll bring you the details how this could help google take on amazon. >> a move to the down side after yesterday's gains. today we have ron weiner and rick santelli. welcome to all of you. kenny, let me begin with you. what are traders saying why we are seeing the dow down 167 points? >> i don't think anyone is surprised. the move wednesday, that explosive move up from where we had been testing lower came on the back of more rumor about greece. the fact we are getting another, not so much a rumor but news makes perfect sense money would be coming back off the table as people position themselves ahead of the weekend. as welles a next week when the fed comes out with their statement wednesday. >> rick, you'll love this.
got the fed meeting next week. what's the more likely yield on the 10 year by the end of next week? 2.30% or 2.50%? >> i'll stick with 2.50%. i have to say -- you know what judge? i want to put an asterisk. no market moves in a straight line. many including us yesterday on "closing bell" were discussing why good retail sales numbers put so much in the treasuries. it turns out the large negative repo rate in 10s and 30s so there is a shortage. it's like the commercial for the candy, sweet or sour. on the sour side, liquidity may show up side in yields at times when it rears its ugly head. there is a shortage. so many treasuries hunker down
not able to trade on balance sheets of central banks and other large financial intuitions around the world. these shortages show up. when the issuance happens, auction, reopening like wednesday and thursday in 10s and 30s, you get to get very fascinating information as to how structure and supply are adversely impacting liquidity in a different way, a way that pushes yields down. to answer your question directly, i still think the path of rates is higher. don't undermine that we can flip back and forth between scarcity and liquidity. >> it's a news conference next week with the fed meeting. interest rates could be more volatile. >> ron, where are you putting money to work in this market? do you see any opportunities today in the sell-off? >> first off, it's starting summer. it's friday. there is maybe a little liquidity issue here. having said that, we are not timing this market.
we said this the past four five years. there is a lot of cash out there around the world. they've been buying the dips. this may be more severe than the dips of the past. we haven't hit a 10% correction in three, four years. we may have that. it's more of an opportunity. we are not going to try to time it. people can't time the whole cycle much less a 10% correction. >> fair enough. i don't mean necessarily today, if there is not something obvious that jumps to the fore. where are you putting money to work? >> we've been out of the emerging markets. we put 5% into an etf that invests towards the consumer. that's safer than just buying em and buying a country. we want to be in emerging markets. it is a growth market. the consumer is a growth market. we are in there. on the bond side we are just buying individual bonds for most of the portfolio. i'm scared of interest rates.
i think they are going higher than lower. we have this short cycle of funds for our clients. we are betting on interest rates going up. we buy individual bonds. >> so too, are those buying financial stocks right? >> that's right. i wouldn't be surprised. could you almost feel like the market is expecting janet yellen is going to change the language in her speech getting everyone set up the rise is coming. probably more so september. i was a believer it would happen november, december. i'm authenticing as long as data continues to get better september is realistic. it's almost as if the market's telling you, enough already. let's get this going. it seems to be okay with that. >> rick looking at the dollar today, this is one we probably don't talk enough about. which way is the range headed from here and what impact will that have on these markets? >> i have complete confidence in the better thy neighbor theme.
all the powers behind those currencies are going to do their best to put more pressure on their currencies down. i think the direction of the dollar will be more up than it is down but it does become a question of two issues. the fed, if they normalize, puts the dollar higher. if overseas forces push their currencies lower, it puts the dollar higher. it is a rig game. i think there is a higher propensity on a multitude of permeations of outcomes. >> given this trade bill didn't pass today, are you disappointed in that outcome? >> i don't think so. ir i think trade will continue. companies are smart. they will sell where they can sell. i think the trade bill is a
reason to be maybe a little more foreign. >> ron kenny, rick thank you. we appreciate it. >> wall street reacting to that ceo shake-up over at twitter. shares of the company giving back much of their gains. it popped 8% last night and now down today. >> they appeared exclusively with our own dave faber on "squawk on the street" this morning. here is jack dorsey about who is the right fit for the job? >> not even a question i'm considering right now. we have a great search committee looking for the right fit for twitter long term. my focus right now is to make sure our product cadence and momentum of execution continues within the company. also to make sure square continues its cadence and its momentum with our strong team over there. >> jack dorsey talking whether
he would entertain staying on and removing the interim job. there is a search committee under way. we'll have to see how that plays out. joining us is twitter analyst darren kessler from raymond james and twitter shareholder kathy wood. you are the shareholder here. what are you feeling today? >> we've been averaging down. we are now in terms of the etf space the number two holder in ark-w. we are pleased with this news. we think costolo scaled the many company. they have three platforms to build out. they own realtime. hyperglobal, hyperlocal. nobody else does. they can get creative and do a lot with that. >> was this really a one person story or was this a fundamental issue with twitter's business? >> no. i think they have to make the
product easier to use, more use-friendly. they are spending a lot of time doing that right now. i think they'll be creative with that platform, as well as the platform which connects anyone with public figures. ellen degeneres, 44 people following her on twitter as opposed to 16 on facebook. >> in millions? >> yeah. that's how powerful this is. and marketing. if i'm on an airplane and i complain and i put it on twitter, they are all over me. they don't want that to happen. you have every corporation paying attention to what people think about their products on twitter. is there a long way to go with twitter. >> is the company going to seize the opportunity here? >> i think you are right. twitter needs to move from the direction of improving the product. that is a concern for us.
user growth hasn't been as strong as we like. there is room for improvement. i talked to one to look at news feed within that group settings your friends, business settings as separate. they haven't implemented those changes. you can do it but it's difficult. there is room for further ad modernization improvement. they talked about direct response. that is an opportunity they need to continue to work out going forward here. whoever the next ceo has to focus on product as well as user perspective. >> what about m&a prospects? >> in terms of twitter being acquired, there is potential opportunity. google is often cited. larger companies do lack social. that's the one area you're seeing strong growth in is social. search is slowing to some extent. from a twitter perspective, i
think there are other areas to go into on the direct response side to build out features there. >> what would have to happen for you guys to exit your position in this company? >> we are going to give this management team some time. i should mention anthony noto is the cfo and i think will bring in discipline they needed as well. want to see how it works out. i think they've got a long way to go with these platforms. if they can't bring the billion people who have left the platform, and it is that many if they can't bring some of them back, they had a taste, they want to see what it's like after it gets better if they can't bring them back, we have a problem. >> did you watch the interview earlier today? >> yes. >> what was your thought of jack dorsey as interim ceo? >> my thought was this is a replay i think could be a replay of steve jobs. steve jobs said he was going to be interim and wasn't going to leave pixar.
as it turns out, he was the founder of that company, just like jack dorsey is the founder of this company. he had a great vision just like i believe jack dorsey has a great vision. >> you left heartened rather than dismayed? >> i did. >> aaron, did it change anything in your opinion about the company? >> no change at this point. it's the rate of the product in six to 12 months. if we start to see user improvements as well as ad modernization improvements, that could get more positive. >> thank you both. about 45 minutes to go into the close now. pressure across the board. twitter shares flat. dow down 150 points. s&p giving up 15. >> up next eli lilly may be pulling back from yesterday's 14-year highs. the pharmaceutical giant is still up sharply thanks to
you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.
welcome back. red in every s&p sector today. dow down 154. the s&p was at least on track for its best week in seven. they are going to watch those greece headlines closely over the weekend. and the look ahead onto next week's fed meeting. then the real game is on. >> let's send it out to dominic chou. >> a lot of red there. one stock in it green is shutterfly after the online photo company had to activist investors elected to its board of directors.
marathon partners here got two out of the three board seats it sought. those shares of up in reaction to that. the company did say that it will work cooperatively with new board members to ensure the strategic vision for growth for captain as well as shareholder value takes hold going forward. back over to you. >> let's look at some of the other big movers today. we begin with shopify. facebook saying it is launching a buy beta program with shopify. up 7.5% on the session. the stock skyrocketed 27% this week. leapfrog plunging after the educational toy company posting disappointing quarterly loss. down 25% today. williams-sonoma rising after upgraded to outperform.
citing the improving housing back drop. those shares got up 1.5%. eli lilly taking a hit, down 3% today. up more than 7% this week. investors making bets ahead of the new date's on the experimental alzheimer's drug. >> meg terrell here to explain. >> eli lilly has gotten this alzheimer's drug that works on the underlying cause of the disease. some people think there may be an initial data release ahead of a big alzheimer's conference in july. that was expected today or monday. there is lack of clarity whether it will come out and how widely disseminated that information will be. the conference is saying it may be only available to people registered for the conference. there are questions about that. this data people are very excited about it. like with biogen's drug that drove the stock up quite a bit. none of these drugs have shown
improvement on cognition till now. getting into the drugs that focus on the underlying problems. >> eli lilly is a major company. should the playing field be more level when it comes to these releases that have a huge impact on these shares? >> there are a lot of questions around these medical conferences because they have such a big effect on stocks. there are a lot of questions that keep it close to the vest. as they start to realize how close it is to the investment community, maybe that will start to change. >> talking about a one-week performance which has been great. this is a stock that has had a great go of it versus its competitors over year-to-date one year three years. it's blown everybody out of the water. pfizer merck and others why? >> it was depressed for a while. it went through a tough patent clip. they were fashion tough business experiences. now their pipeline looks really great.
they've got big shots on goal with this alzheimer's drug and a cholesterol drug people are excited about. these are high risk/high reward type things they are going after here. if it works out, it's fabulous. however, with the run-up we've seen they are saying it is overheated. >> you are seeing the big guys trade like these are new biotech guys. >> it shows what is going on with health care. yesterday we saw that axovent ipo. this is a $3 billion company they bought the drug for $5 million from glaxosmithkline. >> a big move. we hope this will mean more treatments for alzheimer's. >> yes. >> thanks meg terrell. eli lilly one of three stocks dominic chou thinks you need to keep an eye on next
week. he'll share his list next hour. 40 minutes to go before the bell rings. dow still in negative territory. not the lowest levels. dow off 144. s&p is negative today, as well along with the nasdaq. >> up next wing stop. what's behind wall street's heated romance with restaurant ipos. >> we'll get into that with the ceo of bojangles. just went public last month and reported earnings yesterday after the bell. here at td ameritrade, they're always working. yup, we're constantly making thinkorswim better. like a custom screener on your desktop, that updates to all your devices. and you can share it with one click. wow. how do you find the time to do all this? easy. we combined every birthday and holiday into one celebration. (different holidays
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fabric doing so well and periscope, it was the right time. >> this cop has been surrounded by whether there would be a potential takeover. >> we have a fiduciary duty to maximize value. >> i feel confident together we can move as one entity. welcome back. a lot of red on the screen today. the worst performer is merck. unitedhealth joining there also. declines of more than 1.5%. nike nearly positive on the session. boeing trying to fight into the green. boeing on the higher side of the board. s&p down 15 points. nasdaq giving up 28. >> how about this just crossing on twitter. >> if the s&p finishes the week up or down 1% it will be longest streak of sub 1% weekly moves since 1993.
>> you are not imagining it. >> love the fun facts. wingstop is rocking wall street on its first day of trade. surging from its $19 share offering price. >> bob pisani with more. >> it's incredible. wingstop up almost 60% on the day. we often see this happen with restaurant ipos. this is where shake shack was. this is another big mover in the last year. it's down today. zoe's kitchen is another one. that is a big mover up huge in the last few weeks since its earnings report came out. these restaurant ipos had big moves. take a look at this full screen. shake shack up over 200%. even the other ones papa murphy's bojangles also up 31%. next week there will be another one, a brazilian steakhouse
looking to go public. these restaurant ipos have been so successful everybody is trying to get into the door. one thing i would say is like wingstop, most of the biggest gains in these restaurant ipos have come on the first day. if you are interested in getting in, the best point of entry is right there the first day and right at the open. back to you. >> thank you. >> one of those restaurant ipos recently bojangles. stock falling today, reporting earnings. >> beat wall street expectations on top and bottom line. full year revenue outlook did fall. joining us is the ceo. welcome to the program. >> thank you for having me. >> how did it feel your first quarter as a publically traded company? >> it's been great. watching the stock can drive you nuts, no doubt about it. we are proud to be a public
company. we are very proud of our brand. the stock's done well since we opened. again, our food is what it's all about. we love being on the market right now. we look forward to the future. >> we see you increase same-store sales about 8%. how much of that was traffic versus price? >> it was a combination of everything. around 4% if you look at it from a traffic standpoint where we were at. it was a great quarter. there is not one thing i can hang my hat on and say that's what drove it. our tried and true products and our service and our bo fanatic fans. we appreciate what they do for us. >> no guidance for second quarter, why not? >> we are comfortable. we made the decision we are not going to give quarter to quarter guidance as we go forward.
we are well within range of what we told the analysts when we started this. we have to do this again in about 60 days as far as our next earnings release. it's something we decided as a company we are not going to give quarter to quarter results. >> i wonder how you think investors would feel about that given you're such a young public company. isn't more information better for everybody? >> i understand that. it's something as far as our yearly outlook, as far as guidance we've given, as far as revenues we were looking at we'll open 50 to 57 stores this year. we've got incredible wide space to continue growing, not just this year but in the future. it's something we made the decision we are going to go on the projections we've given. we had a great first quarter. we are proud of that. >> you guys are the consummate chicken and biscuits chain. what impact are you seeing on
your chicken supplies from bird flu and other issues? >> we are blessed. our contracts are locked through the end of this year. the avian flu out there as far as the eggs we've got adequate supply. one of our promotions in july and august will be promoting our eggs. we've been blessed there. the price has gone up no doubt about it, but as far as supply we have it. many places don't. we are fortunate to be where we are right now as far as commodities. >> what do you make with fast casual ipos this year and what seems to be a big fascination among investors with that part of the industry? >> as you talk about chicken, it's great to see the public is telling you they like chicken. as you talk about fast casual which our food is that way. we cook our food. we don't have microwaves in our store. what i would say is i thicknk
people want good food. folks want to buy a good product. i think you are seeing that. you are seeing that switch i'm not going to say it's turned on but people want good food at a good value. >> real quick, impact minimum wage hikes across this country, is that impacting your bottom line? >> it has not. we pay more than minimum wage as far as our company. we have not felt that pressure yet here as far as where we are at in the southeast and our ten states. it has not been something that has affected our bottom line. >> is it going to affect where you expand at all? >> again, we are going to stay in our footprint. in our core markets north and south carolina. all our ten states where we are growing that we are already in
when we have 200 something stores outside, we are just not seeing those pressures. don't foresee anything this year or the remainder of this year as far as labor pressures. >> we'll go back down to the carolinas to get our hands on it. >> the bubbling fried chicken shots were looking good. it's almost quitting time. >> thanks clifton. >> thank you so much. time for cnbc news update with courtney reagan. >> here is what's happening. who is republicans hope to hold another vote on tuesday to pass a program to help workers hurt by trade this afteran the house delivered a humiliating blow to president obama rejecting a jobs training program that leaves his ambitious trade agenda in doubt. u.s. regulators confirming an air bag made by takata led to a woman's death in april. >> greece saying it will present its creditors with new proposals
over the weekend to breathe life into stalled bailout discussions. fears the two sides are far apart caused the greek stock market to fall 6% today. >> a celebration of all things superman is going on this week in metropolis illinois. people flock there every summer to get their pictures taken with the statue of superman and actors dressed up as superman. >> thank you so much. about 30 minutes to go into the close. the dow is down about 133 points. we are off the lows. the nasdaq down about 0.5%. up next, the wall street pro who crunched the data why stocks tend to sell off the last 30 minutes of trade. why he is flagging the move. >> whether something rotten is happening in silicon valley.
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less an half hour to go in the session. could see unusual volume in this final stretch. let's see what traders are watching today. joining us ben willis from princeton security. >> the most important number on the day will be 4, 4:00 on the bell because this day has been dreadful. >> and it ends the week. >> we are rangebound. we thought we got a little bit of a juice through it yesterday when it got above 2105 on the s&p. here we are back down. the guys you want to be talking to is the najarian brothers. you'll have china trying to manage their economy that's slowing down. the fed is the key note.
i still go back to the fact greece is the shiny thing that keeps traders occupied. the real story about greece is what would happen if they are allowed to exit. what happens to ireland or portugal. ireland said "me too" if greece gets the go. what happens next? great britain made a comment leaving the eu. >> the fed, the big event. >> absolutely. >> have a good weekend. >> just to see how difficult and crucial this last half hour of trading has become lately we've got one chart to look at. >> if you take a look at the last half hour of each day and numerous guests telling you how important it is from a liquidity point of view. we looked from january 1st to may to see what is taking place during that crucial part of the day. we actually found it to be concerning. we found a lot of selling is
taking place. >> is that what we are looking at here? >> if you take a look here. the 100s are even lines. anything above, you're positive anything below, you're negative. you can see a downward bias here of constant continuous unrelentless selling pressure into the clothes. the market hasn't moved. narrow range. we are up 2, 2.5% year-to-date. if you buy the last hour each day, you are down 2%. >> this effect has become more pronounced through the year right? >> that is correct. >> is this unusual? does this tend to happen if markets are moving lower or in a range or unusual, based on your experience? >> this is unusual we are in a bull market. there are numerous theories you want to trade with the last half hour. that's where it pays off. you want to trade against the first half hour trade with the last half hour. this right here the last half hour is telling you you need to be careful. last institutions with massive money flow is leaking out of the
market. >> what do you think the individual investor should do now being aware of this information? >> you really need to be watchful here. if we fall off a little bit, is this going to accelerate? if it starts to accelerate if weakness comes to the market and guys pull more money out of the market, that is a red flag. this is something that traders should be watching. >> etfs are supposed to let you get in and out of the market during the day. if somebody wanted to avoid this effect, they could exit a trade earlier than that. why do you think? is it because of etfs? is there a reason why this dynamic is changing? >> etf is a big factor. another is corporate buybacks. when do corporate buybacks happen? they cannot occur after 3:30. 3:30 comes around and you lose that corporate buyback. >> the buyer is out of the market. >> correct. the market falls on weak hands. >> the scales are falling from my eyes.
really important. please keep us posted. we are about to close it up. 20 minutes to go before the bell ends the week on wall street. looks like it's going to be a down friday. big next week with the fed meeting. youtube taking on amazon unveiling a demo of its new live streaming gaming app. youtube has high stakes in that battle. details next. later -- larry kudlow weighs in on the house voting down the trade mill. creating tons of buzz from washington to tokyo. leave early go roam sleep in sleep out star gaze
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welcome back. you heard what a tough last half hour of trading it's been this year. still the dow holding on to its decline of 138 points. about 15 minutes left in the session. we are keeping an eye on shares of twitter on the news that dick costolo is stepping down. popped up yesterday, and now flat on the session. the gaming war is getting a new kid on the block. youtube unveiling a new gaming app.
julia boorstin has that story. >> youtube is looking for a big piece of the big business of live streaming of video game play, just unveiling a new gaming app, bringing together all youtube's gaming content with tools to make it easier to search and browse. just presented this afternoon, 100 of youtube's cop gamers saying more than 25,000 games will have their own page gathering videos and live streams about those titles. youtube is taking on twitch which says it has more than 100 million members in its global community watching and talking about video games with 100 million broadcasters. amazon bought twitch last august snapping it from google the expected buyer. youtube's announcement comes ahead of e3 the big video game convention next week. youtube launching an e3 hub where it will stream all the video press conferences. youtube has been building up its
attack on twitch unveiling higher qualify streaming, which is one of those things key to keeping gamers happy. >> i guess it's better to be late than never. why not cede this one to amazon or twitch? >> there is a lot of conversation about gaming on youtube. what they are trying to do here is not let that opportunity pass by. gather all that information and make it accessible and easy to navigate. the problem with youtube, there is so much content, if you don't know water looking for, sometimes it's hard to find. by creating this separate gaming vertical, they hope to get people have a separate app on their phone, stay engaged and constantly watching. it's too valuable to let this massive market which is growing quickly and global go over to amazon. the key thing i would point to here, youtube is an ad-based business.
the demographic of people who like to play games is usually men in their 20s. it's hard to reach them with traditional advertising. it's valuable for youtube to sell those ads. >> just like scott. big gamer. >> my kids though. big time. >> your kids aren't -- how old are your kids? >> they are young. >> julia, thank you so much. >> they don't qualify as gamers. i put them in that category. >> 14 minutes to go. >> every member of the dow jones industrial average is negative. nike was briefly in the green. it is now in the red. s&p's flat for the week. dow's down 130. >> presidential candidate hillary clinton unveiling her new economic plan tomorrow. one of her top advisors tells us why she can be a champion for everyday americans, coming up. also ahead, troubling statistics. wait till you hear how many americans owe more on their
mortgages than their homes are worth. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business. ♪ ♪ [ radio chatter ] ♪ ♪ [ male
darst. financials have taken off. this is on this bet interest rates are going to continue to go up right? >> as you know as of april 1st the financials were down 2.7%. since then they've roared ahead by 9.8%. they are up 6.6% on the year. i'm using the kbw bank index, the 24th largest bank. >> i expect nothing less. >> it's not just interest rates. they tend to do well when rates are rising. they seem to be making that bet rates are going to go up. when the dollar is strong also they have a very positive correlation with that. number three is they are in a capital return mode. stock buybacks and dividend increases. they can do this. the fed has the lid on for so many years. that's number three. number four earnings. they are making better loans today than they used to. less credit write-offs. >> how long is the list? kelly has a question.
>> two more. earnings better credit. better cost control, cost containment. the fifth reason price-to-book value, which is the way you value financial stocks. price-to-book is in the 45th percentile. and morgan stanley's adam parker is expect inging, his two top sector picks. >> energ is having a tough session. do you have a view which way it goes here? >> i think we are in a binary world on energy. we've got huge supply all over the world. china's retail sales, industrial production, imports, exports this week were not so hot for china. you have that demand falling
off. inventories are high all over the world. you could make a case for oil to come back under pressure. it's up about 15% this year from the beginning of the year. or you could make a case if there is some kind of instability, you've got yemen, saudi arabia involved in these things in a way that weren't before. could you make a case for it to be $150. >> the number one beneficiary of oil way up in triple digits is vladimir putin. >> is there a financial stock back to that conversation that you like better than the others? a lot hit 52 week highs today, which shows what they've done lately, but how little they did before. >> scott i think you want to look at dividend -- the canadian banks, no one pays attention. >> like rbc?
>> there are five of them. the world economic forum says they are the strongest banks in the world. they yield 0.47%. 14 or 15 times pe. i wouldn't neglect the canadian banks. >> we won't. thank you. david darst. >> happy weekend. >> we are back with the closing countdown next. >> solving california's drought problem. the lowdown on a solution to make pacific water poetable.
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we are back on the floor of the new york stock exchange for the extended closing countdown. bob pisani this was an interesting week. what is going to break stocks out? >> federal reserve. >> we are going to talk about -- >> not only the meeting, but the news conference. >> here's the thing that hasn't happened. they have to set this up for a september rate hike. that's what everybody down here believes. there is a lot of people in the one and done camp down here. they've got to move in september. they'll have one rate hike and then one and done and see how the markets react. >> the markets may go crazy. we talked to jpmorgan's new stock strategist on the halftime
show today. he thinks you get 5% to 10% correction when the fed moves. even though it's going to go slow the first initial tantrum will be hard to deal. with. >> isn't that worth it? isn't it time to do the first rate hike? everybody wants it they want it. i don't think it should get in the way of the federal reserve. i think the economy is strong enough. may housing starts another big mover. we had tremendous numbers in april. seven-year high in housing starts. if we get anywhere near that that's going to be the confirmation that the fed needs that the economy is getting better. it's going to be much more important number than it normally is. next week we are going to get quadruple witching quarterly expiration of stock and index futures. that will move things. options, as well. that will move it toward the end of the week. on top of that we'll get big ipo week. remember what happened to ipos this week? >> we had the biggest biotech ipo. >> wingstop on the nasdaq a
chicken restaurant 60% move in the day. there is axovant sciences down 24% after being up 100%. >> this was the best biotech ipo ever. >> they raised $315 million. it was the largest amount raised in a biotech ipo ever in a single day. they have one product. people were amazed they could spend $5 million to get this alzheimer's drug and the company was worth $3 million at the end of the day. next week going to get fit bit. a big brazilian steak house. these restaurant ipos have been massively successful. >> got to get on the gravy train. we were talking to david darst about the financials which started to pick up activity. you had yesterday a number of
these big names hitting new highs. >> multiyear highs on citigroup. >> goldman sachs jpmorgan. your regional banks, fifth thirds and pncs hitting multiyear highs. you know the knee-jerk reaction by banks when the rates are moving on the up side. >> i think they've gotten ahead of themselves. i'm not sure those rates are going to go up that much to make a huge difference on the revenue streams. >> let's not forget about greece. the potential for headlines on an almost daily basis which can move not only currencies, but bond yields. >> i think it's going to be down the road till march. that's when everybody will realize there are no reforms
coming. have a great weekend. the second hour of "the closing bell" begins in five seconds. welcome to "the closing bell." i'm kelly evans. it was a tough session to close out the week on wall street. the dow going out with a decline of about 140 points. s&p giving up 14. the dow is back below 17,900. nasdaq dropping 31 today. we did see declines pick up into the close. we saw red arrows across the board. let's bring in today's panel to talk about how to deal with this
information. welcome, one and all. i don't know where to begin. evan, you buying this market yet? >> no. you know i'm not. >> we had a nice couple of sessions. >> not really. the market ended the week where it started. much of nothing. i've got two words for you. first word greece the second word is deflation. you notice something? six months ago, we heard that word every day. your people came on the show. >> my people. >> deflation, deflation, deflation. you haven't heard that word. today's data proves it's out of the conversation. rates are going higher. >> is he right? >> that may be premature. there is a global battle against disinflation which could teeter into deflation. the european central bank with the bank of japan are committed to what is a nice edge deflationary environment.
qe has been largely successful. that's why we think the qe in europe and japan will continue pace. it's stabilizing the u.s. premature in europe. >> if you look at commodity currencies around the world, there is no inflation trade. most people think the dow is going higher, europe going lower. i would jump in the middle of the other two gentleman and say there is wage proifrnlt the ecb is happy to see bond yields spike higher in europe. that is representative of an adjustment that comes. what they are doing is working on the fringes. we've got the fed next week and a lot of data that sets the stage for putting everything back in this economy. everything has been trading off europe. >> we had just today consumer confidence index. we had producer prices.
yesterday retail sales. if you days before we had small business, nfi. my point p is itis it's not just data point. they are pointing to a september hike and inflation in rates. >> that appears to be what's happening in the bond market. >> the world is behaving as it should. we are getting to a point where next week is important. it's going to be about greece and fed. right now, the market's saying we are going to expect higher yields and digest that and pull back a little bit. we'll wait on greece and the fed. >> does it mean we start to see a pop in some of the bubbles forming with regard to real estate other parts of this market? >> johan rupert who owns one of the biggest banks in south africa gave a speech this week. he said capital around the world is ridiculously overvalued
mispriced. he said when things get mispriced, they get abused. he said he was offered a loan 100-year loan at 15 basis points above prime in switzerland. >> overpriced or underpriced? >> underpriced. when capital is mispriced, underpriced, it gets abused. his point was this bubble in underpriced/overcapacity capital is going to continue. i don't see an end to a lot of these asset bubbles. >> tim, does that remain the case if we are starting to talk about short-term interest rates moving higher and people reallocating what they are willing to buy and hold in the credit markets? >> there is pressure. if you look at the equity shorts, what a lot of institutions and folks are shorting is hyg that give instant cover whether we are seeing backup in credit. if you look at atctual spreads, they have widened.
china, there is talk they are going to cut the triple r this weekend. also a lot of the noise right now, but central banks are in charge. that's not going to change. >> my point is more, does something like this moving onto a higher rate environment start to take some of the air out of these other bubbles where people have piled into other asset classes than desperately searching for yield where you can find it? does it mean the end of that era? >> it might be the end of that trade. you've seen it in the united states. we bottomed out at 1.63 on the ten year. janet yellen wants to pull back some of the bubble as he said. she doesn't want to derail the economic recovery we are seeing.
we'll see if she has success. i think they go in september. >> the direction is up but it's the pace and the extent of that change. we are still talking about relatively very small moves over a long period of time. >> these asset bubbles, maybe they don't grow as fast but are still there. >> let's bring in dominic chou. >> they were top performers this week. we'll see if momentum carries over. our analysts took a look at some of the top performers. check out shares of procter and gamble, the best performing stock in the dow jones industrial average this week. up by around 3%. over the past full week up 2%. this is big. during the course of this week we heard from reuters there was possible interest for components of beauty products portfolio.
that is helping shares. we'll see if that continues on. most of wall street has the stock rated hold rating. the second stock is eli lilly. it was the best performing in the s&p 500 thanks to optimism and chatter about stocks relating from alzheimer's to plaque psoriasis. the gains have come off as people don't see the alzheimer's news coming out the next couple of days. eli lilly did ramp up large in the closing hours of trading. the best performer of the nasdaq 100, citrix system. they are pushing for change there. they've taken a decent size stake in the company to help propel shares up 8% over the week. founder of elliot management will be one of the featured guests at next month's
delivering alpha conference here on cnbc. tune in and look into attending the conference july 15 2015. paul singer joining a host of big-time money managers and hedge fund managers. certainly trades to watch. for the full story go to cnbc.com/pro. great stuff. dominic chou. are you trading any of them? >> procter and gamble looks the most interesting. it's massively underperformed over the last 12 months. people need to see positive restructuring. follow through on the cosmetics spin-offs. cost control. i think it is in a transformative stage and exciting. in this market where people are concerned about valuations procter and gamble, not cheap relative to itself but cheap relative to the market to itself. also underperformed with stuff
going on. citrix is a name the activist community has been trying hard the last 12 months. the announcement they have position doesn't mean change overnight. >> i think this speaks to active management will run to the fore in 2015. as the dollar comes off the boil, as oil seems to stabilize in the high $50s, earnings environment will be more back-end loaded. benefits of the oil price coming down will be back-end loaded. those will be important things from a corporate perspective. >> we are seeing evidence this is a better stock picker's environment. >> we'll be here all day if i start going off on that subject. >> give me the 140-character version. >> i don't buy it. i don't buy the active management.
relative to the last five years, that was awful. >> we had high correlation. sometimes 100% correlation across names because of macro moves. that's gone away. >> i would be willing to make a bet over the next five years, the majority of active fund managers will not outperform the index. >> i'll take that if you shorten it to a year. >> a year? >> you've got to make the point. >> my bet is almost unlosable. >> over five years? >> i say this. active managers to me in the next five years are in a much better position. there have been index huggers. the s&p is going to outperform. active managers are paid to maneuver and probably overmaneuver. then there are active managers
and activism. that continues to outperform because of pressure and cheap capital and more leverage to push. they are in a good seat. >> we have to leave it there. we'll pick this up again. thank you, tim, for joining us. >> they'll have the inside scoop why smart money is outperforming the broader market. don't miss a moment of that. 2015 is shaping up to be the slowest year for tech ipos since the financial crisis. is that because of having to go public and answer to shareholders is too big of a headache?
>>. >> jack and i and the rest of the board all know that we have a fiduciary duty to our share holders to maximize value. we think we can do that best as an independent company, but again, we are going to fulfill our fiduciary duty to maximize value for the company. >> that was outgoing ceo dick costolo earlier today on "squawk on the street." sounding off on the pressure to deliver for shareholders. alibaba's jack ma voicing his
concerns being a public company this week. >> if i have another life i would keep my company private. i do it not for myself i do it for the shareholders customers, employees. they need it. i don't need it. it's live it's tough when you ipo. before ipo is really tough, now after ipo is much worse. >> this year just seven venture capital tech companies have gone public. with us for more on this trend, you said there is something rotting in silicon valley. why doesn't anyone want to go public? >> for a variety of reasons. the stuff jack talked about and dick talked about. being a public company ceo is a much harder job than being a private company ceo. particularly with activist investors. that is a more difficult thing
to do. particularly when you are in a situation where the private markets are flooding with you cash. it used to be you go public because it was access to capital. fidelity and wellington and t. rowe were coming into the private markets. you don't need to do it the way you used to. >> if someone is willing to give you multibillion dollar valuations why would you go public? >> i thought this was a really important piece you wrote dealing with wealthy investors putting so much money into private equity and venture capital. you make the point the private aek equity guys are selling everything not bolted down. how does the venture capital market correct? what do you think a correction in the private market of these unicorns looks like? >> in the short term the hope if i'm invested in venture capital, the hope is we'll see a
post labor day ipo boom. maybe uber some people suggested uber is the plug blocking everything up. if uber could get out, things would follow. there are a lot of companies who should go later this year. >> what happens if the burn rate continues? they burn through this capital? what happens? not uber. the $1 billion, the half billion. what happens if they run out of money and can't get more venture capital? how does it correct? >> you have a big problem. you'll see a lot of acquisitions including private equity firms starting to make acquisitions on the companies that are close to cash flow break even. you will see companies fail or companies merge or get acquired for scrap. i don't think we are in this situation where it will be that dramatic, that quickly. probably will be a bubble deflation rather than a bubble burst. if you are an investor in venture capital funds and seeing
huge paper returns, i've got to be banging your head against the wall that almost none are going public. we'll get two more next week. that is a small number compared to what's sitting in the pipeline. >> does anybody look at twitter and say maybe we should wait a few years to see if these are sustainable business eses? probably not silicon valley but me in new york who are september cal of twitter? this company is worth $15 billion six months ago and now worth $25 and could be worth less than that. >> it could and could go back up to $15. there is this argument the public markets are smarter than the private markets. not really. they yo-yo more. twitter was a successful ipo. it is a public company worth much more today in stock than it was when it was a private company. if i'm a private ceo, i would
look at twitter and say they got what they want out of the public market. twirt is different in that the ceo who pratt them public wasn't the ceo or founder. >> how many of these companies, uber maybe being an example have to go public at some point to monetize some of the promises they made? >> uber is unusual. none of them have to based on the way their stock structures are. at what point are venture capitalists going to beg them to? structurally and emotionally don't want to force entrepreneurs to do anything. they genuflected at the board level and have given founders control of the stock. there is nothing necessarily forcing them unless those hedge funds walk away from the market there is no option. i've got to go public or do
something else to get liquidity. >> there are much greater fools in the private market, you don't have to go public right? >> that's true. >> dan, thank you. there is a trade war in washington. president obama on the losing end today. his trade bill was just beaten down by members of his own party. larry kudlow tells us why this could be bad news for the economy. later we'll speak to the ceo of one company who says he can solve california's historic drought and conserve energy at the same time.ag in the us are caused by weather. but utilities can now predict where the power will go out, within a few city blocks. working with ibm they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day.
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welcome back. you can see performance across the energy stocks today. the sector was the biggest laggard on the s&p. exxonmobil nrg and chevron down over 1%. the president wants to expand his trade negotiating power known as fast track. a number of republicans voted in favor, but the plan was derailed by a vote against proposal to assist workers hurt by trade. there are more votes to come. the house and senate will have to reconcile any ones passed. the trade plan looks like it's going nowhere. joining us for his reaction cnbc senior contributor larry kudlow. what does it mean for the economy? >> i'm a free trade guy. to me if you lower tariff a tariff is a tax, if you lower taxes, it's good for the economy. export jobs are very high-paying jobs with the 20 free trade companies we have, that's 50% of
our exports. we need to expand. it's a big world out there imports coming in. why can't consumers have the cheapest goods available around the globe? the problem here is politics. today was trade adjustment assistance. they'll have to give up more to get this thing through. i don't know how many trade adjustments we have in the federal budget. there are hundreds of them. none do any good. this is part of politics. >> there are some who say the gop intentionally wanted the votes to be done this way so it was clear democrats weren't supporting this legislation. does that mean we are setting up for a 2016 run which republicans are going to champion free trade as a pro-growth agenda they think they can run on? >> i hope they do. republicans have been short on slow growth policies. no. i don't think that. it was pelosi who said no to
obama. republicans should get about 15 votes more. this is good policy. this is good foreign policy. there is a third hook here that interests me. you talk to paul ryan and others on the ways and means committee. there is still a chance corporate tax reform and repatriation, it's still out there. >> you really think this trade bill will go through now? >> i do. i think when it's all said and done -- we go through these iterations all the time. these are procedural votes. we haven't voted on the free trade bill yet. republicans know congress gets three bites out of that apple. there is no such thing as one deal and that's it. most of the deal's posted on the web.
they get three bites to vote against it. there is no immigration deal no global warming deal. all that will be erased if it exists. >> we have breaking news on this trade deal being shot down in the house. >> what we have is an official statement from president obama and the white house with regard to today's votes on the tpa as well as trade adjustment assistance. the president says today republicans and democrats in the house voted to help the united states negotiate and enforce strong high trade deals good for american workers and good for american business. my top priority is to grow the economy and encourage new sources of growth and job creation. he says the trade promotion authority will protect the environment, promote free and open internet and crack down on companies that break the rules. trade adjustment assistance is an initiative that would give roughly 100,000 american workers access to vital support each
year. republicans and democrats in the house failed to renew it today. i want to thank the bipartisan group of representatives who came together on behalf of america's workers. our business and economy. i urge the house to pass the taa as soon as possible so i can sign them both and give our workers and businesses even more wind at their backs to do what they do beth. imagine, invent, build and sell goods made in america to the rest of the world. just the official statement from president obama with regard to what happened in the votes today in the house with regard to the tpa and taa. back to you. >> thanks. what do you make of all this? >> i think it's a president obama failed politics 101. he can't get his own party to come along and give him the authority. that's shocking. >> what about the substance of this particular bill? are you for it? >> of course. if you are a believer in free trade, it's a no-brainer, which
makes it more shocking he couldn't get his party. >> it's just taa. they voted against trade adjustments. there was a second vote today. they voted 219-222. it passed by three votes. the taa wasn't in there. they have the votes. i want to make this point. i thing obama has done a lousy political job but he's on the right side. you'll see in the house they have the votes. >> a quick last word? >> you mentioned the ray of hope here that maybe this could sort of start the ball rolling on obama talking to republicans about tax reform. do your sources on the hill say that is truly a possible outcome of all this politics right now? >> they've been talking. it's very interesting. the ways and means committee have been talking to the
treasury during this time. they are are hung up on tax rates and personal small business, llcs. they are hung up on repatriation rates. what you hear now is that's not dead. this trade bill shows it is possible on certain issues to work together. no i thing it's possible you'll get corporate tax relief. imagine pro growth for the stock market you? get a free trade bill you get a corporate tax cut? my lord this country would start looking like it ought to look. >> sounds like it could be a platform for 2016. we'll come back to this another time. thank you so much. >> thank you. >> larry kudlow. time for a cnbc news update. >> the manhunt is intensifying in upstate new york where more than 800 state troopers and federal agents are searching for two escaped prisoners on the loose for a week. much of the territory being searched includes rugged terrain
with some efforts being hampered by rain. waco police updating the public on the investigation into the may 17th shooting at twin peaks. the release says police did not fire indiscriminately on bikers during the incident that left seven people dead. said only three waco officers discharged their weapons and only 12 shots were fired. relief and rescue efforts continuing in nepal after landslides struck north eastern nepal. at least 53 people were killed with two dozen missing. the death toll could rise as rescue operations continue. the world's smallest pacemaker is being used at the same south african hospital where the first heart transplant was performed. the miniaturized technology is 1/10 of the size of the traditional pacemaker. >> fascinating stuff. thank you. new report finds nearly 8 million americans are still under water on their mortgages. that is a big reason so few homes are being listed and what
>>. >> we did end the week on a decidedly lower note. the dow going out with a decline of 140 points. 31 off the nasdaq and s&p down 15. the 10-year seeing the yield moving higher just under 2.4% today. we have that key fed meeting next week. more homeowners coming back to the surface. the number of underwater homes where they owe more than the mortgage is dropping. that's good news. there are troubling numbers. diana olick joins us with the complete story. >> no question. the underwater equity problem is improving. especially as home prices make
these big jumps we've seen lately. it is not over yet. for those deepest under water, they are not coming up any time soon. nearly 8 million borrowers are there. that's over 15% homeowners with a mortgage. a vast improvement. still about half those borrowers are deeply under water. that means they owe at least 20% more on the loans than the current value of their home. with home price gains expected to moderate these borrowers could remain under water many years to come. that throws the housing cycle into a tizzy. why? the majority of these borrowers are in lower-priced starter homes. if they can't move up that limits the supply of homes for first-time buyers. builders are not focusing on that segment. there is a near-critical short supply of homes for sale which is hurting that move up housing cycle. >> what do you make of this?
do we want to see this inventory coming back in or is it better for the housing market to some extent, to status quo being what it is? >> i want to ask diana a question. i was surprised half a certain number of homes are still under water by substantial amount even with housing prices rebounding. after all this time what's it going to take for people to get out? how does it eventually solve itself if the increases in housing price are not going to do it? >> these are not necessarily zombie houses. a lot of these borrower are still living in their house and dealing with the fact they are under water. some people lost 50% of their home value in the crash. in order to get back up they have to nearly double their house price now. we are not seeing prices go that fast. we have a great story on cnbc.com today about a couple in
oregon. i spoke to them two years ago. they thought they would come up from under water. two years later, about to have their third child, they still don't have equity. they said they are willing to stay and save up and pay into the mortgage to get out of the house. >> i think at the end of the day, some people have to be willing to take a loss. there was a notion in this country for most of the last 50 or 60 years you wouldn't take a loss on your home. home prices always go up. the sad reality is we know now, that's not the case. some of those people sooner or later, will have to take a loss. they may not be willing to do that. >> they absolutely will because they feel that's their only way out. as the economy improves they say we want the space. we are going to call this a wash and go on about our life. not everyone can do that. a lot of folks will continue to sit. that, again, keeps that inventory off the market which
we do need. it's not that they are necessarily distinct went on their loans. it's not about the banks dealing with them or them going into foreclosure. a lot of these folks just sit and wait. >> thank you so much. diana olick. interest rates will have a huge impact on the housing market. don't miss jim cramer's fed survival guide tonight on "mad money." economic equality for all, that in the speech by democratic front-runner hillary clinton. questions about her wealth continued to be raised by owe edd by opponents. >> as california struggles with the drought condition, the solution may be as close as the pacific ocean. the ceo who is making this case -- next.
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huh. the good news is my hypertension is gone. so why would you invest without checking brokercheck? check your broker with brokercheck. welcome back. those airlines really beaten down in today's session. american airlines higher 1.72%. speaking of transports we are keeping an eye on oil. how drought-stricken california today ordering the largest cuts to farmers, holding some of the state's oldest and strongest water rights. telling the watersheds to start
pumping from the waterways. the latest step to combat the epic drought. desalination is becoming more of a consideration in the state. poe i'm joined by the ceo of poseiden water. welcome to the program. >> thank you for having me. >> what i find compelling is desalination takes a lot of energy doesn't take as much as a big data center from facebook or google. is that the case? this is much more energy-efficient than people realize? >> that's true. the efficiency of the process has been improving considerably over the last several years. i think it's bound to continue to improve. in boston and elsewhere, there is a lot of research going on in the universities to find new filters and new techniques to bring down the price of energy.
the important thing is that water is so critical. if it takes energy to produce clean water, that's a good use of it. i think that's the way people should be thinking about this. >> to what extent though? california especially, but the u.s. has adopted tough emissions regulations. are you running into that as a head wind when it comes to getting plants online or other environmental concerns? >> these plants have no emissions, to be clear. they use electricity, but they don't produce any emissions at all at the site. one of the concerns is about the nature of this electricity we consume. one of the things we are trying to do is make sure we use as much renewable energy as that electric supply as possible. to the extent we have to use generated fuel by the local utility, we are buying carbon
offsets to mitigate that. >> what's happening in terms of california using a lot of the expertise developed in the middle east? there are lots of middle east countries, not just israel that use this technology and it's the life blood for those countries where water supplies is a perpetual problem. >> that's right. the technology comes from israel. ide is the supplier. they have five plants operating in israel that they have had over the last several years. they have really worked out the kinks of the process. i think there's a lot of places where this technology is the life blood of the water supply of those areas. >> robert? >> this makes so much sense, you have to wonder what are the
barriers. clearly in california you have bureaucracy and the environment. we are talking about anchovies talking about the fish endangered. tell me how you deal with the fish problem and bureaucracy. that's the big issue here isn't it? >> carlsbad was the first of the large desal projects coming on line. in many ways it was a ground-breaking pioneer. we, with the regulators learned a lot about what needed to be done. we've done a tremendous amount of work to study what are the impacts, as well as what are the possible solutions to mitigate those impacts. we have done are very much committed to minimizing our environmental footprint both from the water that we take in as well as the brine we put back into the ocean. to the extent there are impacts
that are still a result of that process, then we have mitigation measures. in the carlsbad project, we are restoring wetlands to account for fish larvae input we take. >> we have to leave it there. the know the cost issue has people focused. we would love to continue the conversation as you look to get that up and running. thanks for being here. >> thank you very much. >> you can check out much more on "the spark" going to cnbc.com/thespark. let's send it out to dominic chou. >> energy group up 2.5%. after the minnesota public utilities commission approved its pending acquisition by wisconsin energy. wisconsin energy trying to buy integrys energy. it's one step closer. it has operations in minnesota,
illinois, wisconsin, parts of michigan, as well. a lot of regulatory approval pending. this particular one brings them one step closer to minnesota regulators signing off. >> thank you. >> money and politics taking center stage this weekend. hillary clinton formerly kicking off her presidential campaign tomorrow with a new policy address focusing on economic equality. this as questions continue to be raised about her own wealth. auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life.
hillary clinton's campaign for president right here in new york city. she's expected to talk about franklin and eleanor roosevelt and the era of the new deal as part of a plan to appeal to a broad spectrum of americans. while an army of americans are vying for the gop nomination the former senator and secretary of state has seen new competitors jump into the democratic race in the last few weeks. and joining us now for more is joe bennettson a senior adviser at hillary for america. welcome to the new york stock exchange. >> thanks very much. >> can i just begin because we just had this happen within the last couple of hours, the defeat to the president on this trade bill, this is an issue where bernie sanders, one of hillary's rivals for the nod, says she has
no clear stance no, position on this issue. would hillary clinton want to see and would she support the transpacific partnership and the trade authority for the president? >> first of all, what went on today and anybody who's following the machinations of congress regularly understands was a very procedural vote. there are several steps here in getting this done. right now there is no trade dealt on the table. what secretary clinton has said and she has supported trade deals in the past with countries like chile and australia and opposed them with colombia is the test is going to be what's the final package in tpp, which is what everybody calls it, and will it have the kind of protections for american jobs and wages? will it protect our national security? will it address issues like currency manipulation environmental regulations, labor protections, a host of things like that? so she has a position. the deal has to meet certain tests for her to support it. it's how she voted in the senate on these things. those were the tests deals had to meet. and we're not at that stage yet. so everybody's up in a tizzy today in congress they've got a couple more votes to go through here. >> meantime you have for example caroline kennedy, big
politico magazine article saying "my dad jfk was for free trade, democrats should be too." she says there was no greater champion of american workers than my uncle senator edward kennedy and when it came to nafta he supported nafta. so is the -- >> what's the question? >> my question is quite simply this. her article and the indications from capitol hill would seem to indicate the democrats are more interested in this narrow piece of the protection for workers affected by the trade bills than broadly speaking for free trade. is that true? >> i know yogi berra a bit, and to say it's not over till it's over. what's going on now in congress i think is a lot of jockeying back and forth to get the maximum of what each side wants. so when it comes back to where secretary clinton is where president obama is you know they want a deal that will have the final tpp package, which bernie sanders hasn't seen it yet. so he's opposing something that he doesn't know the final details on with all due respect to senator sanders. but that's what's going on right now down there. obviously, this is going to get a lot of attention over the next couple of days but what's going
to matter is what's in that final deal. >> why doesn't hill r. clinton just come out and say you know, what i'm all for free trade, just come out, just say that? >> because free trade implies you're going to be for every trade deal evan and i don't think it's smart. i don't think it's smart economics. i don't think it's smart for the working american people who don't feel fully they've come back from the crisis -- >> does sche care about the economics right now or does she care about the politics? >> she cares about the economics. people's economic lives is what is going to be front and center in this election. the american people have claude their way back from this crisis. they've worked two jobs. they've worked two shifts. they've put off vacations. you just had a piece on the air about their homes are underwater. they don't feel like they're out of the woods yet. so to say why aren't you for free trade as a concept, what matters is the details in these trade deals. that's what has mattered on every one. and opposing some and voting for some is what she's done in the past if they meet those tests. >> you're absolutely right joel. the issue is americans have not recovered yet. but is she the right messenger for that? i mean during the obama election he unleashed the beast
and basically said look voters this is about us versus the 1%. she can't really make that argument credibly. i mean nothing says middle class like a $250,000 speaking fee. right? she's going to have a tough time saying i relate to the middle class. >> well there are two things let me take two parts of your question. one, president obama did not campaign saying it was us against the 1%. >> he absolutely did. when it was romney. >> he said building an economy from the middle out -- >> it was fat cats. >> excuse me. you've got to let me finish. that's all i'm asking. the campaign over and over again, and i worked for president obama in that campaign, was do you build a strong economy from the middle out or the top down. and the top down policies that mitt romney and every republican have advocated have crashed our economy repeatedly. as for whether or not you can connect with the voters from wherever you come from and americans have elected people from different backgrounds, poor folks like lincoln, people like two roosevelts both of whom by the way -- >> fdr was wealthy? >> in the 1%. and those guys advocated fiercely and tenaciously for everyday americans and their
families who were working hard and all they want was to get back the real rewards for the work they put in. you folks sit here. you know what the productivity line versus the income line says. it says they're producing more. american workers are producing more. your profits are at record levels. we should share in those rewards. and that's going to be front and center in secretary clinton's message -- >> just before we let you go -- >> starting tomorrow and going forward. >> speaking of tomorrow narrowly, are we going to hear any proposals for her to offer widespread student debt relief for example? >> look, i think she has spoken to the need for us to be able to educate the workforce in the 21st century without saddling people with crippling debt. you will hear it addressed. there will be a series of proposals that will be released in more detail. but that will certainly come up in the speech tomorrow, no question. >> joel, thanks for being here. >> thank you. >> joel behnenson. you might remember this iconic seen from the movie "soylent green." >> you've got to tell them, soylent green is people! >> believe it or not, soylent is
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welcome back. it's the nutritional shake silicon valley can't seem to get enough of but its name conjures up an unpleasant recipe. josh lipton has the story now. hi, josh. >> hi kelly. well, the three most popular words in silicon valley -- change the world. so who has time to eat? now thankfully there is a solution. soylent is a powdered meal invented by engineers. just mix the powder with water and what you get is a simple affordable shake. here in silicon valley it's become a hit with technologists who want to spend more time working and less time preparing meals. >> we're known for the computer programmers and the silicon valley culture from where we really emerged, and we feel a lot of that is because engineers, computer programmers in particular, are very good at breaking problems down into discrete steps.
similarly, a lot of people haven't really managed to think about nutrition in quite that way. >> soylent has raised more than $22 million and has plans to expand to europe and asia. kelly? >> but is it any good josh? >> you know i've got to tell you it wasn't as bad as i thought. semi-sweet, kelly. >> thanks a lot. josh lipton in silicon valley. that does it for us on "closing bell." "fast money" begins right now. >> live from the nasdaq marketsite in new york city's times square i'm melissa lee. this is "fast money." your traders on the desk tonight are tim seymour, david seabrook, brian kelly and guy adami. on "fast" a volatile day for twitter but if history is any indication we'll tell you why the return of a celebrity ceo could be a great thing for the stock. plus big pharma. eli lilly surging recently over excitement for its alzheimer's drug. meg tirrell has a special report on the real reasons the stock is moving, what it means for sxharltds space. but first to the sell-off closing out the week.