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tv   Closing Bell  CNBC  August 29, 2016 3:00pm-5:01pm EDT

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big interrue tomorrow here on "power lunch." we'll be voifed by vivek murthy to talk about the health care industry brought about because of mylan. >> shedding the light. thank you for watching. >> "closing bell" starts right now. welcome to the "closing bell," everybody. i'm kelly evans at the new york stock exchange. >> i'm wilfred frost to be here. your holiness. we'll explain that later. financials which have been struggling this year leading the way. we'll have more on what's behind that move coming up. >> a report saying apple will be hit with a tax bill over in europe. details on that story and what apple is doing to fight it, coming up. help wanted at the big banks. why it's more difficult to fill those jobs and how changes in silicon valley could impact
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hiring on wall street. mylan announcing a generic version of the epipen for $300. what it means for the millions of patients that use epinephrine. but let's start with the markets. they've run up today. they declined about 0.8% last week but bounced back to tune of half a percent today. joining us, we have brad mcmillen, ben willis and our own rick santelli at the cme. good afternoon to you all. brad, let's start with you and focus on the driver for the market bounce today. it is banks, it comes off the back of a decent move on friday. all really based on expectations of rate hikes coming forward. is it justified the see the banks start to perform given how much they underperformed year to date? >> yes, it is. the reason i'll say that is first of all you have yellen actually coming out and saying she sees the economy strengthening. despite the uncertainty. it is not just the rates but seeing the businesses improve.
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there could be a double whammy going forward to help them. >> you know, ben, here's what i don't get. because we were talking earlier about the markets coming back and art cashin saying maybe it's a rethink of fischer on friday and rate rise. why are financials still outperforming? >> financials are -- they're a leading indicator of going forward. i think today's market may have a bit of an exaggeration built into it with the lack of participation. it's a heavy vacation week. empty train tons way in. they're jumping into the pool and very little liquidity to chase here. a continuation theme of institutional money, selling the volatility or the vix, if you will. i think we are seeing that play out once again but we are forward looking end aor the and the fact of the matter is rates rising are good indication of a good economy but also good for the financials. >> rick, are we overplaying how much investors are increasing their expectations of earlier
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rate rise since friday given there's been relatively little else to talk about over the weekend? >> well, you know, you could look at the markets and make all types of calculations and say that the chances have increased but i really don't think that those are going to be very beneficial. another short market trade just like euro dollar, libor. looking at the dollar index and virtually unchanged, gained roughly a penny last week and still 3% below where it closed at the end of last year, it's still only highest levels from mid-july, it really doesn't tell me that the market is accepting what stan fischer put forth and not like stan fischer that they haven't put things forward that did not occur. who am i ever to argue with art cashin? i think it is a rethink and as ben pointed to on a day without
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a lot of volume. the hurry up to catch up to your bogey, those texas hedges make me nervous but i think it's more status quo. i haven't bumped into anybody that believes the fed will snug up before the election. does that mean they won't talk about it? yes, it does. does that not mean there's a potential of atlanta gdp around 3.5%, it's the quarter of escape velocity? we have been there many times and a catch-up of weak quarters of gdp. i don't think it's more than that and not sure if the fed tells it's more than that and at least at this point, friday's number, unemployment, probably pretty important. >> i'm sure you want echo that and also talk about areas of the market you like regardless of what happens on some of the macro numbers. >> well, i look at valuations. i look at future options. i see industrials doing better. i see energy doing better. they've started to bounce. i think there's a lot of room to
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run there because companies have adapted to higher dollars, weaker growth. and if we actually get some upside potential they're really poised to outperform. >> ben, do you get concerned at any time seeing the new highs the markets have been hitting and also take into consideration the low volumes? do you think we could be in for a little bit of a negative bump when most traders come back after labor day? >> i would love to see a negative bump but i don't see it. there's so much money lined up. we have not seen volatility. one of the factors is vix continues to be sold. which is a -- giving you an idea that the volatility is quite low. a pullback is wonderful. a buying opportunity if it happens and i believe there's literally trillions of dollars on the sideline waiting for a direction from the fmoc on when it's time to really jump in. the markets moving the way they are right now, large institutions and anticipation of that happening. >> brad, before we go, you mentioned financials and energy. what about health care in this market, an area one of the best
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performers and hitting some snares lately? >> i think the real problem with health care is not the underlying economics but the political risk. that personally would leave -- i permly don't believe in overweighting health care because of that. with hillary clinton at this point favored to win with the future of the affordable care act up in the air, there's just a lot of risk baked into that and i don't think you're getting paid for it. >> all right. >> brad, ben, rick, thank you for joining us this afternoon. >> thank you, guys. now to mylan offering a generic version of the epipen for half the list price. meg tirrell with details. >> that was a good segue with the political risk of investing in health care. of course, all of this political attention and other attention paid to mylan. now leading the company to produpr introduce a version of generics. the company will offer it at about half the price of the
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branded version probably hoping to defray some of that political pressure. now, some analysts wondering here does this result in even a greater escalation of the war with the pharmacy benefits managers. if you look at the economics of the epipen supply chain, the top is mylan provided last week saying about $334 in the $608 goes to the supply chain and the pbms and net $274. under the new list price of the generic epipen providing and analysts wonder what will go to the supply chain and the pbms and mylan will actually net out and take home from that generic pricing. we talked with the express scripts last week about the price of the epipen. chief medal officer steve miller charging them with a challenge. listen to this. >> we would love to see lower drug prices. we passed the savings that we take from the marketplace back to our plans and so i challenge
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her, she can lower the price today and we'll make sure that our patients get lower co-pays and the plans pay lower prices. >> today we reached out to express scripts and sent us a statement. they said we appreciate that mylan has heard our call to lower its prices and it's still too high. we will continue to put medicine within reach of our patients and clients. but really, here by saying they're bypassing the brand system, guys, including the prescription brand managers, analysts wonder if they further antagonize the supply chain. >> thank you for that. stick with us because we are going to bring in chief pharmacy officer at the cleveland clinic. scott, thank you for joining us. the first point i wanted to kick off with, have they immediately undermined themselves in the eyes of the politicians criticizing them introducing a very similar price at half the price and highlighting the extra high prices we have seen earlier
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are not necessary? >> perhaps. we'll have to see how that shakes out. i'm glad to see that they're doing something, however. >> scott, you're the chief pharmacy officer and i guess that means that puts you in charge of ordering or dealing with the pharmacies and ordering the drugs. is that right? >> yeah. i'm responsible for medical use at the cleveland clinic and the sites -- >> required to have a lot of epipens at the hospital i imagine. >> we are not because epipens are designed for patients who need them emergently. we have trained nurses in the hospitals so we have for the most part little kits with the syringe and a vial of epinephrine costing us about $15. so that's about -- that's the actual cost of the vial of epinephrine instead of the $300 or $600 charging for the pens. >> if my kid was in the hospital with a bad reaction, i said my only choice is x-hundred dollars on the epipens, you know, is there a way to come up with a
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$15 option, like you guys have here, what advice would you give me? >> probably really challenging. these are trained nurses, who graduated from nursing school and know how to give administrations. it is something we have done to keep costs down here at the clinic. >> scott, if you put yourself in the shoes of a consumer, regular consumer needing one at home, how would you weigh out the benefits of a $600 original versus a generic or same company? >> that's a great question. it gets complicated depending on the insurance. you know, it could potentially cost a patient more with this because mylan announced just last week that they were going to have a co-pay card designed so that the patient doesn't feel the pain. most generic companies don't allow co-pay cards. if they use a generic, chances are -- i mean, i haven't looked at this, chances are there's not a co-pay card available and
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depends on how their insurance is tiered. a high deductible plan, they might $3,000, $5,000 before anything's reimbursed. i guess the answer is it depends. >> scott, it's meg. i'm curious why a company offers a branded version and then seemingly identical of a generic. is it accurate? are they further complicating a system they're claiming to make more transparent? >> it is a complicated system. it's an authorized generic so it's the exact same product from what i've read and putting a different label on it. this way they'll command both the brand and potentially the generic market. one of the biggest problems is that competitors have not been successful in introducing competition. so this will help them maintain market share as others competitors come on to the market. >> what do you make of the claim that mylan made that some of the
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players of supply chain including pharmacies that contribute to the higher cost of the branded drugs. >> that's almost egregious as the price increase they have done. certainly, it is very complica e complicated and nontransparency with the rebates floating around is challenging. but pharmacists get very little, actual pharmacies from this. it's fixed and independent pharmacies or our pharmacies here have no leverage to negotiate. we get what the payers pay us. >> and, brad, how much of this is predicated on the insurance company being on the hook here? so when they separate this out for one brand and generic version and a rebate card in one case, i mean, how much comes down to different ways of having the insurance company responsible for these payments? >> i'm sorry? was that for me? >> yes.
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>> okay. the insurance -- it's very challenging, again, the insurance companies manufacturers want to have their products in the top tier. so they negotiate rebates and pbms so pbms and insurance companies decide what's the most cost effective for them, including that rebate money that comes back. so it's challenging. how that shakes out for the consumer, i guess, it's very difficult to say because there's so many different variables. >> scott, you mentioned that the pharmacies get the fee based on the wholesale acquisition cost of the drug. >> yes. >> a branded drug $600 list price, the quote/unquote generic for $300, wouldn't that incentivize the pharmacy for the higher based drug? >> not necessarily. it depends on how it's written. generally the insurance company a lot of times will only pay for the generic. so they won't be -- the pharmacy doesn't have the choice to give
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the brand. the physician can write to use the brand and the pharmacy generally has to in many states. >> scott joining us from the cleveland clinic, really appreciate you feel fieldi ifie questions. meg, thank you, as well. >> thank you. we have 45 minutes to go in the session. keeping an eye on that space and all the others and broadly a rally. did dow up. the transports are doing well today and the nasdaq's higher, too. >> up next, apple could be on the hook for billions in back taxes in europe. we have the damage assessment coming up. also ahead, two pilots arrested before their transatlantic flight allegedly too drunk to fly. we have more on the fallout. you're watching cnbc. this car is traveling over 200 miles per hour. to win, every millisecond matters.
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and that's just one school, two semesters, three girls. together, we're building a better california. welcome back to the "closing bell." markets higher today bouncing back from just shy of a 1% last week. up half a percent on 0.6% for the dow and nasdaq shy of that 0.4%. best performers are financials.
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as for specifics on the dow, we have got the likes of nike, apple, disney lagging. going to hear why apple is lagging in a moment. travelers at the top. check out the movers today. caesar's entertainment tumbling. a judge say they must pay in lawsuits that could faers it into bankruptcy. the shares down 16% in the session. herbalife is higher. carl ichan buying shares of the company late friday as we told you. but sources tell cnbc the investor may have been interested in exiting the position in august but only for the right price. they say two financial firms were working independently to find a buyer for the massive stake and nothing ever happened. on "squawk box" friday bill ackman said he was contacted about buying a small portion. he said he was trying to sell the position because, quote, he knows the thing is toast.
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the company up 4.5% today. >> rumbles on. apple may be on the hook for billions in back taxes in europe. josh lipton has the story in san francisco for us, josh? >> reporter: that's right. so reuters now reporting that the european commission will rule against ireland's tax dealings with apple tomorrow. and that dublin is told to recoupe over 1 billion euros in back taxes or about $1.1 billion. there's a special arrangement of the two sides that ireland dodge international tax rules by allowing apple to shelter profits worth tens of billions of dollars and apple keeps employing people in ireland. both sides deny any wrongdoing, however. moments ago white house press secretary josh earnest did weigh in. take a listen. >> the united states is committed to tax fairness and make sure that the kind of agreements with other xuns are not manipulated to allow certain
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companies to shirk their responsibilities. >> reporter: now, for their part, irish officials have told the press that they didn't give any state aid to apple, they'll defend the international reputation. apple denied any wrongdoing, as well. in interviews, ceo tim cook said there was no special deal with ireland. that the structure apple has in place there is applicable to everybody. clearly, of course, the ec seems to disagree here and investors not too worried right now. some $1 billion does represent less than half a percent of apple's current cash pile. back to you. >> but is this quite a significant and symbolic hit to apple? because thus far tim cook seemed to suggest it might come out in their favor and if not he would be surprised and would appeal. >> reporter: well, i mean, listen. remember, tim cook andal apple don't believe they've done anything wrong here and made that point. they'll point out they have created 1.5 million jobs in europe, the company's paid all
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the taxes that it owes. and cook will say, listen, this really isn't about paying more taxes. it is about who gets those taxes so i would not expect apple to take this one lying down, guys. >> thank you, josh. nor the irish, by the way, seeming upset about it. >> as embarrassing for them, perhaps more so than anybody else. they thought they had ironed out the issues of europe on that tax system and a high profile example they haven't. >> so true. not every day this happens by the way. mark zuckerberg, and his wife, met the pope today. they said they discussed communication for poverty and make the message of hope arrive. remember, earlier this year, the pope shook hands with apple ceo tim cook and that encounter a week after meeting the executive chairman of alphabet, the parent company of google. talk about outreach of the tech leaders. >> and i don't think it would
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have happened under the previous popes. he is a legend, the current pope, isn't he? adored in a way that past ones perhaps weren't. >> i wonder if it acknowledges the role of social media and when these leaders coming in to meet with the pope, are they not aware of their social responsibility in a sense? >> yeah. exactly. i think changing and the pope likes to poke on facebook ever? >> he's very active on social media but i think it's -- >> his team. >> yes. >> there we go. minutes before the bell, the dow at this moment is up around 0.6%. as is the s&p. we are up 116 to be precise on the dow. now two pilots were arrested in scotland allegedly too drunk to help their transatlantic flight. details are next. also coming up in the battle for talent between silicon valley and wall street, we'll speak with someone who says the valley is winning but that could
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welcome back. the markets rallying today, oil is different story and stocks with exposure in colorado's oil and gas exploration and production business are staging a rally today. that's on news two measures seeking to restrict fracking failed to qualify for colorado's statewide ballot in november. synergy leading the way up more than 4%.
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barrett, pdc an noble up, as well. >> much more stable than three or four weeks ago. moving on, our next story sounds like it came out of a bad movie. two airline pilots arrested for allegedly being too drunk to fly. phil? >> reporter: they were in court today in glascow. they posted bail and arraigned and it's interesting to see what happened. here's the two, pilots on a flight that was scheduled to take off 9:00 saturday morning from glascow to newark, pulled out of the cock pitt and given tests and arrested. once removed, united brought in another crew. it took time to get them in there. people had to deplane and get back on the plane. the plane finally arrived in newark ten hours later. united said they have been removed from service and their flying duties. we are cooperating with the authorities and will conduct our
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own investigation, as well. the safety of our customers and crew is our highest priority. shares of united, i have had a number of people say, what's the legal limit? o are pilots allowed to have a drink before they fly? the legal limit is 0.04. for most states it's 0.08. the rule is not having a drink within eight hours of flying. random tests are given to pilots and ramp workers, you know, engineers and mechanics who work for the airlines throughout the year. those tests are done on a random basis so pilots don't know if they're tested. in this case, it is interesting to see whether or not somebody on the flight crew or a passenger or somebody said, look, i smelled something or the guy acting eratic and why the police were called. but generally speaking, you are not seeing a pilot drink or should not be eight hours before a flight. guys? >> phil, i can't believe the
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legal limit isn't zero for a pilot. what is the legal process in the uk now? what's the maximum punishment? is this possibly jail-ible? >> reporter: there's potential there and looking at is more likely a case where they would likely lose their license or certification as well as they'd have to probably pay a fine. i think jail is less likely than, you know, the other possibilitys that are there. >> i'm also wondering, phil, same one that we heard about i think last week and the pilot reported the co-pilot or different with a different pilot s intoxicated? >> reporter: different pilot with a different airline and the blood alcohol level was 0.3, well love for driving let alone for flying a plane. we don't hear about this a lot. there are not a lot of cases of this happening but when it is detected they move quickly as far as the police coming in, establishing a breathalyzer.
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above the limit, they're immediately pulled off that flight. >> listen. two of these back to back, if a third one happens, you know, i'm -- i expect broader public outrage and disappointing. thank you, phil. >> reporter: you bet. >> phil lebeau with the latest. sue? >> hi, kelly. good to see you both. here's what's happening at this hour. president obama meeting with turkish president erdogan ahead of the g20 summit in china according to the white house and discuss the recent attempted coup in turkey and the fight of isis. top clinton aide huma abedin says she is separating from her husband, former new york congressman anthony weiner. this after he was accused in yet another sexting scandal. a truck carrying air bag inflaters and a led of volatile ammonium nitrate crashed, caught fire and exploded in texas killing a woman and injuring
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four others. department of transportation says traffic fatalities were up sharply in 2015. more than 35,000 people were killed in crashes. that's a 7.2% increase from the year before. and it ends a five-decade old trend of declining fatalities. the last single year increase of this magnitude in 1966 when deaths rose 8.1%. that is not a good statistic. you're up to date, guys. see you in an hour. >> yeah. horrible. be safe out there. that's fueling the debate about whether it's better to have driverless cars. i don't know. but distracted driving with more people on the road. >> yeah. it is not a good combination and pointing to several factors for the increase but authorities say they were surprised at the magnitude of this increase. >> big jump. thank you. see you next hour. let's check in on markets. half an hour to go until the close. we are higher by the tune of about half a percent and lost a little bit of impetus in the
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last couple of minutes and nothing major. still to come, a leading trader tells us what he's watching into the close on the first trading day of the week. last trading week in august. are we in another housing bubble? new data could shed light on the key question coming up. are you doing? oh hey john, i'm connecting our brains so we can share our amazing trading knowledge. that's a great idea, but why don't you just go to thinkorswim's chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders? i know. your brain told my brain before you told my face. mmm, blueberry? tap into the knowledge of other traders on thinkorswim. only at td ameritrade.
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♪ 27 minutes left to go to trade. markets up half a percent. financials leading the gainers today. following janet yellen's speech last week. the best part of the 1%, wells fargo soaring 2.25%. smaller banks of suntrust and cincinnati financial up over 1%, as well. kelly? >> thank you. on the floor with less than half an hour to go in the trading session. scared off bill this week. but he's coming back, don't you worry. >> some point. >> what do you make of the market into the close here? >> one of the things we notice on these kind of days and sort of quiet, vacation feel, happy vacation. i mean, the market is up, they compress the volume and seeing decent numbers on the close and leaning to the sell side and
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anticipate that will reverse and continue the kind of action we have had today. >> is it a rethinking of jackson hole comments and whether it's possible to get a rate hike next month? >> i think people are starting to get comfortable with the idea it's inevitable, it is coming. welcome at the other things. we have labor data coming out on friday that's very important. end of the month is on wednesday. there will be rewaiting associated with that. so i think now that jackson hole is behind us and the comments have sort of become a little bit clearer, we're in a better spot after that. >> all right. we'll see. a lot of names in the point line as we understand and september's usually rockier month and a problem for the end of the week, isn't it? first we have to finish out august. >> thank you. >> thank you. right. moving on, wall street banks have being trouble attracting talent. hay can't pay the salary and bones some tech firms are offering and not just about the money. the new generation of talent
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wants sandals, bring dogs to work and know that they're key players in the firm's future. how long will this trend last? joining us now managing partner quantec. push, thank you for joining us. >> thank you for having me. >> banks or all traditional industries? legal professions, accounting, consulting firms, suffering to the same extent or banks the ones most hit? >> i think it's -- to be honest with you, look. we have 20-plus years of movering the highly technical engineers and quantitative mind-sets and what we have seen through our data points is that there's a true evolution right now. right? after the crisis a few years back, technology industry as a whole has come a long way of increasing base salaries and perks and benefits for their industry and the financial industry has actually come very
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far attracting the same talent. we see people of google, facebook, coming into the industry. i think one thing to note is we have to be able to 'embrace the individuals into the industry and not support engineers. they're the next generation of creating innovate i talent for the future. >> how important is salary relative to all the others to offer somebody to attract talent in. >> look. compensation obviously is a very important factor and a key thing is a lot of institutions have started to understand that there's more than just compensation and next generation of talent. again, we have able to embrace the individuals and make them understand they no longer are in the passenger seat but the driver's seat. they are -- i mean, we come in the generation of driverless cars today, right? they're impacting p & l in the front office and in the back reducing operational costs and can't treat them as quote/unquote second class
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citizens. >> can wall street fight back? because we know their hands are tied on bonuses. can they fight back to introduce the more kind of quirky aspects to pay and structure of their jobs? >> i definitely think so and i think some banks rebranded themselves. i think the buy side has done a tremendous job of actually making these individuals, all the way from juniors in college to graduate students and making them understand that engineers are very much needed in the industry to continue to help evolve it. >> is that what we're talking about is kind of software engineers and specific about that issue because goldman, for example, said extremely said a high proportion of the work force is software engineers and feels like the distinction is blurred. >> correct. i think people assume it's just software engineers. they're creative individuals that are artists in their own right and individuals that actually need to come into our industry to help evolve the
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change of what's happening right now. they're the drivers. >> is there an aspect of which this is good for the u.s. economy? many years people criticized the fact that greatest minds go into wall street. >> i think it's phenomenal. i think as the world evolves we have to think, be forward thinkers. there's a reason why certain institutions branded themselves as financial tech companies. >> just to come back to that overall debate of tech and wall street, to what extent is cyclical opposed to structural? the moment wall street is not sexy, tech companies meet with the pope as we talked about earlier. is this going to swing back in three, five year's time. >> i think it is cyclical. i think pre-crisis, very those attract these high-end engineers into our industry with compensation. i think our industry evolved to make them understand there's more than just comp and a bigger impact to make. we have seen systems crash and how much of an impact made to the industry as a whole.
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they can come in and actually create thought tolerant systems. >> cool. push, thank you for joining us. >> pu>> thank you. >> push is a cool name anyway. i was watching seinfeld where they named the kid seven. thank you. >> we have 20 minutes left before the close of markets today. this final week of august we're up around 106 points for the dow and just over half a percent for the s&p. still to dom, nfl quarterback colin capper nick may find out there's a price tag for the protest over the weekend. a discussion on free speech in the free market coming up. but first, the return of bubble trouble. home prices rising for 50 straight months and just a percent below a new all-time national high. some think it's deja vu all over again. that story is next.
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what if a company that didn't make cars made plastics that make them lighter?
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the lubricants that improved fuel economy. even technology to make engines more efficient. what company does all this? exxonmobil, that's who. we're working on all these things to ke cars better and usless fuel. helping you save money and reduce emissions. and you thought we just made the gas. energy lives here. reason back. let's send it out to seema mody for a market flash. >> as stocks trade in record high territory look at brazil. seeing the best day since july 29th. this as brazil's dilma rousseff
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defends her record at impeachment trial saying that the accusations are meritless and may be too late. the final vote is likely to incur next week, according to strategists. they're seeing it to be happening between the 30th and 31st of august. of course, that's one of the reasons we have been seeing this outperformance in brazilian stocks. this specific etf up about 60% year to date on this promise of a hope in political change. again, that etf up 2.7% on the day. >> seema, thank you. huge rally there. moving on, as house prices continue to soar, way past expectations, the b-word is once again starting to come into focus. >> yeah. >> bubble. >> cnbc's diana olick is there. i can't believe we're talking about it again. >> reporter: we are. several housing markets seen prices surpass the housing boom
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peak of 2006 and tech is the primary driver in many of those markets. take a look. austin, boston, charlotte, denver, san francisco, portland and seattle. of the nation's 40 largest cities, 14 have already seen home prices cross to new highs. only st. louis sow prices drop annually. the key in all of these hot markets is strong job growth. again, a lot of it is workers leaving northern california because they can't afford it. san jose is finally moving off its peak home price and the gains in san francisco are shrinking quickly. apparently there's some kind of ceiling. june markets 50 consecutive months of annual national home price appreciation with prices up 33% from the bottom in 2012. black knight financial services puts the average home price in june at $265,000. that is within just 1.1% of a new record high.
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the difference today, though, from a decade ago is these prices are not being driven by faulty mortgage products that people can't afford but a lack of supply of homes per sale and near record low mortgage rates. to see the cities again, they're online. back to you guys. >> diana, the last point you made there about mortgage rates, absolutely crucial, of course. what's mortgage growth rates been looking like? because if we look at the last quarter of banks earnings, a lot of consumer areas seen fast loan growth an i wonder whether that's a concern seeing it coming in line with the record high house prices and things are coming a head again. >> reporter: well, the growth in mortgages, actually, has been in the refinance. we had a refinance boom two months ago, a lot of refinances this year. and that's helping people pay less on their mortgages each month and that's a help to the economy and to consumer spending. we have seen some growth in the purchase applications for mortgages but again underwriting is still very strict so even the
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growth in the purchase applications is still showing that these mortgages putting out there now are very, very safe. some are even saying a little too safe. >> that's true. a lot of cash buyers. i guess, listen, it is all watching the speed of the pricen creases, the speed of the sales increases. if it starts to go parabolic again, are there signs that's happening? >> reporter: well, the thing to look at closely is mortgage rates. if rates start to rise, even a little bit, this market is sensitive to that, especially with these higher home prices. one thing to say, okay, there's 3%, 3.5% down payment loan products out there but really not everyone can qualify for those. you have to have pristine credit. if rates start to inch up, that puts prices on home prices and could see them not just ease by fall a little in some markets. >> all right. thank you for joining us. keeping a very close eye on the housing market. we have 30 minutes to go here. 13 minutes to go here.
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the dow up 101 points on the session today. as we are close to closing out the month of august. s&p up 11. nasdaq up 13. next guest sees stocking picking opportunities in some economically sensitive sectors. he'll tell you what they are after the short break.
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welcome back. want to mention standing on the floor with ten minutes to go, art cashin said 500 million to sell on the bell and could have taken the levity out of the market. we'll keep a close eye on it. we're on the floor with david pearl. welcome back. what are you watching in this market? >> we are finally seeing the market react to the economic news being good and continuing to be good so the market is going up on equities. bonds a little more indifferent to whether rates are going up or not but thinking about the long term, equities grow with the economy and they also pass through inflation so if rates go up, equities are where you want to be. not bonds. equities really are beginning to take leadership. and, you know, for the last few years there's been a real
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movement to buy dividend yield stocks, defensive stocks. where the economy has been so-so and fears around the world, we have had three corrections over the last 12 months and defensive stocks got very expensive. the market's at 17 times earnings. consumer staples, for instance 23. >> yep. >> but there's a huge stock picking opportunity now in economically sensitive technology stocks, industrials, and consumer discretionary and should do better given the economy. >> and banks leading the charge today. that might be part of it. i want to dive into apple. you are an owner of that. >> yeah. >> they set a date for event. could be the new iphone and the tax issue in europe. what do you make of that? does it change your position on the stock? >> no. i mean, it is clear the irish government believes they did a reasonable deal with apple. they will help defend it with apple. in any case, apple is most cash rich company in the world. they can afford to pay a few billion dollars if they need to. the real issue is growth and
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apple's valued today as if it's about to shrink. apple's at 11 times earnings. a food company, package food company at 23 is you think apple will go away and really they will have double digit growth over two years. can't say how fast this happens with the new iphone but within this model or the next, very easy year over year comparisons. shrinking the share count and generating a lot of cash. >> briefly, also, if you have any other stock picks and mentioned maybe this is the environment for them. >> well, for consumers, you know, consumers are spending. so, you know, the automobile cycle is kind of peaked right now but the age of autos grows older so we own advanced auto parts. consumers are pendspending to k the cars up like homes. time warner which is really turned out to be well positioned. even if you cut your cable, you can buy hbo over the top. so time warner's done a good job
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of protecting their intellectual property no matter where you want it. consumers are spending. >> david, thank you for joining us. >> thank you. up next, coming right back with the closing countdown. and then after the bell, may wind up being one of the great course reversals in american political history. donald trump ready to make a major speech on immigration. the wall is expected to stay and how much of his original proposals remain intact? a preview is coming up. you're watching cnbc. ♪ we're drowning in information. where, in all of this, is the stuff that matters? the stakes are so high,
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welcome back to the "closing bell." moments left until the close of the market. up 106 points on the dow. 0.6%. a similar amount for the nasdaq. s&p lagging behind. bob pisani joins me now to discuss the main drivers. oil prices are down and expect energy to be down and it is not. >> no. this is a good indication. they want stocks today. and you want to see something odd? normally on the day when oil is down, oil stocks typically under some kind of pressure. they haven't been except for early in the day and the big names, exxonmobil are on the upside. exploration stocks. they're all on the upside nicely. 2%. drillers, the whole complex is up deexcite the fact that oil is down. they want stocks today.
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another one normally on a day of 10-year yields, the whole yield complex down and treasuries, downside, banks normally don't do very well. yet not only are banks doing okay today but even, for example, insurance companies are doing okay today. you have people buying stocks aggressively. the question is, why. even though the volume's not very good and why is that happening? and i think there's follow-through of friday. people concluded the economy is not doing that bad. the risks to the economy are less than they might be. there is some interest rate risk but some people seem to be banking on the idea that the economy might be able to handle it. there's cross currents going on right now. but stocks are holding up really well. >> stocks are holding up well. and european trade ended off the lows of the day. have a look at $-yedollar-yen. that shows people pricing in --
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>> strong dollar, weak yen. >> the best way of showing that, nikkei soared today by 2% and that i think is showing people's expectations of the stronger economy coming through. >> certainly the idea and there's issues about how strong the whole program is over there, particularly with negative interest rates overall. so i think right now what -- for the data that we have right now, the evidence of the stock market is slowly improving economy's going to work well. possibility of interest rate hikes and very limited. most of the market seems to be pricing in most one for the year. seems to be a bet that banks are going to be fine with just one and have been improving in the last few weeks on that idea. so right now, the market's holding up right near historic highs with not a lot of pressures from the outside and selling interest right now. and that's about what you can say. >> bob, to what extent is this simple? worst performing sector banks performing and telcos might
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underperform? >> they have been and cyclicals of industrials and telecom coming to the fore. >> thank you very much. there's the bell. up 108 points for the dow. ringing the bell here, thor industry. at the nasdaq that's it for the first hour of "closing bell." kelly? >> thank you, welcome to the "closing bell," everybody. i'm kelly evans a. rally here across wall street. the dow finishing higher by triple digits, 108 point there is on the bell. and it was the outperformer of the day and closing back above 18,500 up nearly .6%. s&p adding 11 points closing 2180. nasdaq lagging today up 13 to 5232. will mylan ceo heather bresch have her time on capitol hill? more congressmen are calling for a hearing into the potential price gauging at mylan and they
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released a generic version. when's next for the chief executive is coming up on the program. stay tuned. joining the panel today, we have commentator and columnist mike santoli with susan ox and with us for more we'll look at this, guy adami. we missed you. >> i missed you guys. nice to be back. >> what have you brought us? >> touring italy. obviously, my homeland. i'm half italian, half sicilian. for folks at home, that understand that distinction, you know what i'm saying. >> i won't profess so. we look look forward to your insights on the italian banking sector and pepperoni pizza. we have a strong rally and are people walking back from the idea of a rate hike or not so much part of it? >> i don't know this it's
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undoing midday friday to be on the path to a rate hike but seems as if there's a sense over the weekend, other central bankers saying, look, the story didn't change that much and really also just positioning-wise, tactically month end, seems as if there was no real oomph behind the selling and a matter of trimming around the edges. today's rally almost consistent across the board. up about .5% with the exception of the nasdaq. over before 10:00 a.m. pretty much that lift out of the open and then we're sitting around here. not to minimize what it means, it just means we got to the lower end of the range on friday and seems like people thought that was a decent enough entry. >> financials showing off, susan. >> they were the one i think brighter spot than today. and i think that is partly the expectations around a rate raise. i would note, though, of course, there's -- still climbing out of the hole and down year to late, down a little under 2% year to date and a lot better and still
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not kind of a gangbusters picture i think people want to make it out to be. >> raised the question of market leadership, guy. we talked about health care but there's a lot of concerns now, not, you know, mylan being kind of one example and political issues, broadly or just deflation across the health care space which seems like it's looming now more than ever. so i'm not sure where we look for leadership at this point. >> it's hard and talking about health care specifically, it is difficult. look across the space. mike can speak to this. big cap pharma names, some valuations of reasonable and a lot of them with balance sheets that a lot of companiless would die for so although i agree with you, the headline risk will be there and be there for quite some time. if you have a long term time horizon, mylan labs -- and i understand valuation, you can't look at it say 8 times forward
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earnings with epipen and the optics of a generic, you know, three or four days later, is really bad. but they will figure this out, i believe, and i think we come back christmastime or early in the new year and say, gee whiz, mylan labs at $43 was a huge opportunity because i think you push back towards 50 bucks. >> wow. you would actually look at mylan as an investment here. >> yeah. understanding that there's some -- definitely still headline risk associated with that name. but that's one of those things you don't want to buy it when everything is solved like bp however many years ago that was. the midst of the storm and we're in the midst of the storm. >> you know one thing it raises just stock picking, period, mike, the correlations out the window lately. the last guest saying a good time to kind of pick names that you like here. but over the weekend, that was still getting buzz of last week, the report of passive versus active strategies. >> yes. >> and where the market's all
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heading. it does -- it feels like that's kind of a talker for a while now. >> yeah. it is going on for so long, accelerated recently this rush of index, passive strategies and even when they're not technically passive, a lot of them quantitative based, a mechanical formula or factor people are following so i think the gut reaction to a lot of that, especially for people who want to make their living that way, say, wow, they must be leaving the ground open for us to do this company by company stock picking. this seems to sound right. it hasn't been rewarded in a broadway and not to say it can't be. i think concentrated strategies, a handful of names, best ideas, that's what i think you are seeing people gravitate to. >> regulation, susan, putting people into justifying the costs. some in trouble for what they offered in the retirement plans. >> absolutely. i think the retirement costs, i think there's such a weird
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environment to be investing in general for years now that a lot of people are -- the search for yield, we're starting to see i think a genre think of the asset management space. you know, kind of in total. carl icahn talking about pulling out of the hedge funds altogether today. i think people thinking differently about the space and where to play. >> by the way, guy, how much legs does the search for yield have? consumer staples trading where they are, utilities taken a step back and trading lower last several weeks. >> yeah. taken a step back in lockstep with the bond market, specifically the tlt that sold out rather significantly. 10-year yield up to 1.65. i think that had a lot to do with it. i still think the bond market goes higher, rates go lower. i understand that the fed controls the front end of the yield curve and i don't think they control anything and i think there's deflationary pressures around.
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i think you see a search for yield but people have a hair trigger to sell names like at&t, verizon, all the utilities because they're worried that maybe the bond market isn't going up and maybe we have seen the low for yields for a few years. >> that's interesting. to see larry summers reaction to jackson hole saying he was extremely disappointed, the former treasury secretary, sharing his thoughts in a blog on the federal reserve's meeting last week saying he was disappointed by what came out of the meeting for three reasons. first, near term signal policies hurt the credibility and long-term discussion was dangerous complacency and the fed failed to consider major monetary policy changes and all of which he thinks should be vastly more dovish than we heard last week. >> he is on record he does not want this move toward, quote, normalization of interest rates that the fed wants to get on with thinking the environment is
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anything but normal. he's pushing the idea that growth is hard to come by and inflation. he wanted a little bit more of an assertive statement i think by chair yell on the say, we really are going to explore the other avenues for stimulus, not just as he said perhaps future policymakers have to consider other tools and very, very measured how she put it out there. >> the federal reserve is very conservative. this is not a place that's known for creativity or thinking outside the box. you know, the recession and the financial crisis was a huge departure of how they normally operate and so i think larry's making the point to say they need to think broader and not say we have the tools in the box and that's what we have done. at the same time, i think you are hearing voices looking for the fed to push back in general against all of this to say, part of the job here has to be bourn by policymakers and some fiscal action that we can't do it all by ourselves and missing from the fed.
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>> front page of "the journal" today, guy, saying the fed wants to back away from negative rates and hard to raise a spector without people thinking you'll use it right now and pricing it in and some people think they're doing more harm than good. summers continues to say, they should be doing much more. >> mr. summers knows more about the economy than i'll ever know. with that said, you know, one thing that struck me as sort of interesting, he thinks a rate hike or tightening stance hurts their credibility. i'd say if they were to stay put or even go the other way, that would hurt their credibility more so i guess that's what makes markets. they oar up against, when say they, federal reserve up against the bank of japan with comments like last night and some 3d approach and buy more assets and go more negative. if you think about it, i've said it a number of times. i'll say it again. i think an unintended consequence of the policies of
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our federal reserve to allow other central bank that is don't have the same disciplines to act in kind and i think that's hamstrung the people at the fed. >> there's been a lot of naval gazing, past couple of weeks, but push comes to shove, it seems the markets are still as confused as anybody. you know, one day on friday, the rates are higher. and then we come in today and then backing off that a little bit. not like a clear signal of the marketplace happening here. >> what you laid out two plausible sides of the argument and they have support of some measure of the evidence it's an ambiguous situation and it seems because of that like a judgment call. increasingly seems like some other impetus is what's getting them in that direction and they don't want to hear janet yellen's nuanced point. >> you can see the dollar index sitting on the fence meantime. we have breaking news on hershey. what's happening, seema?
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>> a press release hitting the wires. mondelez said it's not pursuing a combination of hershey. no longer pursue the combination of hershey and execute plans for sustainable growth in shareholder value. they said they're determined that there's no actionable path forward toward an agreement with hershey and it will update investors at the upcoming barclays global consumer staples conference. we look at shares, no big movements in shares of mondelez but hersheys down now about 9.6% and not pursuing a combination with hershey. back to you. >> thank you. shares down almost 10% on this news. >> yeah. i mean, obviously, a big taker of premium is also in hershey and then the approach and seems that the hershey trust fended off a fender and too thorny to try to navigate that process. they have a lock on that board.
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>> guy, triggered changes or maybe some self reflection at hershey by focusing on the fact that they have fended people off that you could argue it's protectionist. >> it's interesting. i agree with you 100%. you and mike make great points. it's trading 101 last i looked. below there now. i mean, this stock if you recall, i think back in july and the news broke, trading around 98 or so and took off from there so even though this suitor is out, understanding that hershey is probably not in a race to sort of put themselves up for sale, i think other suitors come forth. if you can buy it at 98 again and sort of round trip where they took off from, you take an absolute shot right there. >> all right. they did, you know, mondelez did no favors saying they won't close the factory and then closed it down. >> i think you have to be -- you
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can't underestimate that kind of stuff and blow up a deal and oftentimes people want to look at the numbers and where's the balance sheet but i think that kind of stuff and the community outpouring is huge. >> especially because the hershey trust, it is local people. they're pillars of the community. they want to protect this. it's not as if they're looking for a global company to come in and take on this. >> i've been to that hershey park and the factory tour but then at the end it was a box of cocoa puffs and not kisses. we were so disappointed. that's history. thank you for joining us, guy. >> cocoa puffs, huh? that is fantastic. >> we're like, huh. i don't want cocoa puffs. there's much more coming up next hour on "fast money." the top ranked technician rich ross says that charts are pointing to a tough september for stocks. you can find out what has him so worried the top of the hour. more than 2,500 cases of zika reported in the u.s. last week and congress can't pass a funding bill, the rapid spread
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triggered the fda to take emergency action. the details are next. and republican presidential nominee donald trump tweeting he'll make a major speech on immigration on wednesday after seemingly softening the case on immigrants last week. what it means for his race to the white house is ahead. many companies use ireland as a tax haven. not just apple. why that loophole could be closing for the tech giant coming up. who are you? i'm vern, the orange money retirement rabbit from voya. orange money represents the money you put away for retirement. over time, your money could multiply. hello, all of you. get organized at
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welcome back. mylan announcing it's produce a generic version of the epipen. not just customers are mad. congressional leaders calling for hearings. meg tirrell joins us now. >> "the new york times" last week talking about the latest price controversy, they also called out two others that previously captured the nation's attention and the turing pharmaceutical and valaent. mylan joined that club. one thing "the new york times" pointed out is that the leaders of the two companies left. so people are startinging to wonder what will happen with heather bresch. i'm trying to get people's
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sense. the sense generally is she probably will stay at the helm of the company. for one thing hearing from folks that her response today is a quick pivot to a solution that may actually start to stem some of this outcry and people saying maybe that was a good thing. on the other hand, people saying she has protections, a board that seems to support her very much and people saying maybe this is a good situation for activists. company in the inversion to the netherlands got protection of potential activists, as well. folks wondering whether heather bresch staying in the role of mylan ceo as so much attention paid to her compensation in addition to the epipen price increases. right now hearing that she'll be sticking around. >> meg, stay with us. it is interesting because her comments really tried to push this, not only off her but off the company and on the industry and the system as a whole when she gave us that interview last week. if that didn't succeed, it would appear it's backfired. >> seems that particular measure
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backfired and the language of the initiative of a generic, they're saying the reason rather than cut the price on the branded device is that, saying because of the complexities of the pharmacy benefit food chain and the rest of it, this is the short cut to doing it and seems she doesn't want to back away the idea of something systemic. >> will she be held responsible because she's in the public like that and people say, you know, we want some sign that somebody is being held responsible for this? >> i think things will get worse before they get better. i don't know that she will be ousted but the idea of the ecosystem of pharma argument only part of the problem and even though that they have reduced it to $300 generic, several years ago, six or eight years ago, $100. that's a significant price increase and congressional members are saying we want you to justify why you thought you should be able to do that. isn't an isolated incident,
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there have been the others, turing valaent and other drugs along the way that didn't hit the headlines and what people consider to be price gauging and because you have monopoly pri pricing power doesn't mean it always makes sense to use it. >> two of the three companies lost their ceos. while we have you i also wanted to ask about zika. if we could pivot there briefly. the number of cases going up worldwide, not just this country and roche i understand has a screening or something? >> it's a test. the fda approved it for people. this goes along with the test for the blood supply so now among at least three drugmakers and diagnostics makers contributing in the fight. of course, roche there all along for the test of the blood supply and the fda saying the blood supply in the u.s. be tested for
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zika and all hands right now. on the other hand, hearing from introxon. this company working on modified mosquitos. they're saying that there are some calls of different constituents in florida asking to test the mosquitos there and a question of whether they can roll out that testing earlier than november and when it's voted on in the florida keys. >> if the problem, of course, just trying to vaccinate people or be able to treat it and cure it once people contract it, meg, how much are the screening tests going to contribute to any of that or more just a way of knowing, you know, as best as we can how big the problem is? >> the latter right now because we don't have a vaccine and though they're making headway we don't have treatments either and because there's such a risk to pregnant women, we need to know who's been infected so they get the right amount of care and especially because there's concern it's sexually transmitted, fda is being
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careful to test the blood supply. >> all right. just curious, by the way, too, for roche's point of view as an investor, still significant? come out with it quickly. >> i don't -- just because of the size and scale of roche, i doubt it's something that investors key off of today. maybe i'm come place ept about it and reinforces this idea that things are in motion to try to combat this and where we are in the season, maybe it seems if the problem doesn't get away from us entirely. >> certainly hope so. meg, thank you for joining us. >> thanks. donald trump under fire for seemingly retreating from the hard line immigration policies. republican nominee promising a major speech on the topic this wednesday after postponing it last week. what to listen for is next. and space may be the final frontier but now the start-up frontier. a look at the america's race to build rockets. still ahead.
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welcome back. phil lebeau, when's happening? >> reporter: this is one of the more unusual moves to hear about in the executive ranks within airlines, scott kirby, long-time president of american airlines, right-hand man to doug parker, is out. immediately. at american airlines. he is moving over to united airlines. where he will assume the same
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role as president of united airlines under ceo oscar munoz. but the release of american makes it very clear that the board decided to go in a different direction in terms of its management team for the future. and as part of those changes, scott kirby is no longer at american. unclear if this was brought on by kirby having discussions with united, being frustrated that eventually he wants to run an airline and doug parker who is the ceo and is relatively young at american airlines, doesn't look to be going anywhere any time soon. why scott kirby decided to move into the president role at united, making this move now. all those things need to come out over the next couple of days but certainly this is a shake-up in the executive ranks and one from united's perspective certainly good news because the weakness at united is on the
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operations front. that's long been the biggest weak ness of united. so, he now becomes president and you can look for him to certainly put his fingerprints further on united in terms of daily operations. kelly? >> phil, thank you. guys, it would appear that the american airlines shares at least are taking tonight chin a little bit, this news of his departure after hours. >> not great news. i think it may as phil suggests a bigger net positive for ual than a real negative for american airlines. i don't know if that's the way it shakes out on further inspection, especially if investors start to think that united continental has a clear successor and somebody in place who has a record at what's considered a better run airline. >> i also think there's clearly more to the story, right? nobody just leaps the same way
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dye a new company and maybe investors want to understand more what happened before they kind of decide. >> great point. phil, thank you for the news. politics, donald trump promising to deliver a major speech on immigration later this week after being criticized for flip flopping on the policies. eamon has a previous preview. >> reporter: right. we might get a sense of the immigration policy actually is on wednesday when he addresses this issue, they put this speech off last week. there was a lot of confusion early last week when donald trump seemed to back off the harsh rhetoric on immigration and called into question the tenants of the immigration policy. here's the comment of early last week that got all this started. take a listen. >> i had a meeting with great people, great hispanic leaders and there can be a softening because we are not looking to hurt people. we want people. we have some great people in this country. we have some great, great people in this country.
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so, but we are going to follow the laws of this country. >> so what exactly a softening means is up for debate. obviously, harsh rhetoric on immigration helps in the republican primary, maybe a softer approach for the general. kellyanne conway on tv over the weekend and how she explained what this means. >> he has said that if you want to be here legally, you have to apply to be here legally. we learned to stand in line and wait our turn and he's not talking about a deportation force but he is talking about being fair and humane, but also being fair to the american worker who is are competing for jobs, being fair to all of us for secure borders and the law enforced. >> part of this, kelly, whether or not trump reach out to suburban voter who is like the ideas on immigration but not the
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tone he's taken necessarily of the rhetoric in the primary and have a softer approach and not lose the hard core supporters joining the campaign in the first place largely because of what trump was saying about immigration, kelly. >> yeah. he'll have a prime tyke audience to do this. thank you. time for a news update with sue herera. iran said the military deployed a russian supply air defense system around the underground nuclear facility. video posted late sunday as you can see shows the trucks arriving a the nuclear site and missile launchers aimed skyward. they didn't say if it's fully operational. apple expected to show off an iphone next week on the fall product launch event in san francisco. apple sending out invitations for september 7th. residents in kansas lining up for bottled water at city
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hall after a burst line possibly contaminated the water supply over the weekend. the break was repaired but a boil water order for 17,000 people remains in effect. and a sad note here. gene wilder, the star of such mel brooks comedy classics of "blazing saddles" has died. he died earlier this month from complications of alzheimer's disease. mel brooks said he was one of the great talents of our time. wilder was 83. i loved him. "young frankenstein," one of the best comedies throughout. >> a total icon. 83. >> 83. i had no idea he was 83. he didn't seem it. >> sue, thank you. >> sure. "closing bell" will be right back. you tell your insurance company they made a mistake.
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welcome back. we had a rally today on wall street with financials participating, kind of leading the way. the dow up half a percent. the s&p, too. the nasdaq did lag a bit, up a quarter percent. 13 points to 5232. reuters without a report today that the european
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commission will rule on ireland's tax dealings with apple tomorrow. apple's accused of sheltering billions of dollars in profit in exchange for keeping people employed in ireland and the tax bill estimated between $1 billion and $19 billion. white house press secretary earnest weighed many on the report in the last hour. >> the united states is committed to tax fairness. and we want to make sure that the kinds of agreement that is we reach with other countries are not manipulated to allow certain companies to shirk their responsibilities. >> joining us now is edward kleinbard. professor, it sounded like the white house wasn't exactly defending apple but in other cases regulators sounded more concerned about the eu's reach in this matter. is there reason to be? >> the treasury department has come out with a policy paper defending apple and the other u.s. firms that engage in what i
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call stateless income gaming, moving income of the jurisdiction where it ought to be taxed to some convenient low tax jurisdiction. and i think that the white house has it right that the treasury was just really off base rushing to the defense of apple's aggressive tax planning. >> go ahead, mike. >> professor, more broadly, what do you think the implications are of this decision for apple and other countries? i mean, other companies. is this basically a notice that says, okay, game over on this front? >> it is in effect. the ec's already ruled against starbucks. tomorrow we'll have apple. the rumor is the one after that will be amazon. but this is all part of a larger pincer movement of which the ec just one part and the idea of the major u.s. multi-national firms that have been so successful at avoiding tax all
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over the world will start paying a lot more tax in the coming years. starting essentially this year. and the only question is to woman. how much will europe an the united states get? but the easy days of single digit tax rates are going to be over. >> and professor, what do you think -- what are the implications for inversions which are obviously a larger issue moving our corporate headquarters and your legal entity? do you think it weighs in there, as well? >> well, if the republican congress responds to the ec ruling, in a protectionist kind of a mode, it will be interesting to see how they then figure out what to do about inversions. inversions are a symptom of the problem. there's no question as tim cook said that the tax system is broken.
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but because it's broken, firms invert because it's broken apple pays extraordinarily low tax rates on the global income. the end result is going to be more tax for apple regardless of tomorrow's ruling. >> what about for ireland who seems to be in a way as upset as the company here? >> well, ireland's upset because the nature of the ruling will be that in effect to put it crassly that ireland in this case, luxembourg in other cases, conspired with the u.s. companies to create a phony tax regime that enabled these companies to rip off other european countries and to siphon the money to ireland for a few jobs or tax dollars. so ireland is going to be caught in quite an embarrassing
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position but it's not going to be caught in a financially difficult position. to the contrary, whether the ec rules, it rules against ireland technically and then it compels ireland to capture the money back from apple and ireland will be rolling in doug. >> they are already and predicated on the looser tax principles and see how it goes down. thank you so much for joining us, professor. >> my pleasure. wanted to mention as you heard on the news update, the tech giant announcing an event on september 7th. widely expected to be the reveal of the latest iphone and apple watch. yet to confirm the reports. and we know at least we understand that the real iphone upgrade until the 10th anniversary next year. >> i think by this point if you look at past iphone launches, both kind of an on year and off year ones you knew in broad terms what it will have and always small elements of surprise. now they're talking about perms
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a better camera. all these other things and no headphone jack. i don't have a reason to out think it. i'm completely wrong very early in saying that we're going to some day look back on this whole idea of having a huge secret mega produced event to introduce a little gadget as ridiculous. >> we have the cars. >> we had them for cars 50 years and we don't pay attention to them anymore. >> i'm looking to see the size and interesting here. whether they're in the by fur kated world of two sizes or shifted to the larger size. i'm in the small world and everybody else is moving towards the bigger size. >> dual lens camera. i don't think i know what this means. darker color. >> and the watch talking about. >> and the watch. listen. if they could untether that, that would be huge. more information on the end of mondelez's bid for hershey.
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seema? >> following the story abandoning the deal of hershey and according to dow jones pricing seemed to be a big part of the question and reporting that they raised the hershey bid to $115 a share last week. hershey had said according to these reports that the price discussions would need to begin at $125 a share. so pricing seemed to be a big part of this discussion here. perhaps the reason we're not seeing the deal go through and again, still looking at shares of hershey down better than 11% after hours. kelly? >> yeah. moving lower. mondelez investors looking relieved perhaps. thank you. the price of protest. nfl quarterback colin capper nick may find out if there's a price tag for the protest over the weekend. at least coming the million-dollar sponsorship. a discussion coming up. the tv and movie franchise "star trek" turns 50 next week. many companies are agreeing with
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the pioneering sci-fi property. up next, corporate america's outer space building binge. hey dad. hey sweetie, how was your first week? long. it'll get better. i'm at the edward jones office, like sue suggested. thanks for doing this, dad. so i thought it might be time to talk about a financial strategy. (laughing) you mean pay him back? knowing your future is about more than just you. so let's start talking about your long-term goals... multiplied by 13,000 financial advisors. it's a big deal. and it's how edward jones makes sense of investing.
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fresh ingredients. step-by-step-recipes. delivered to your door, for less than $9 a meal. get $30 off your first delivery this car is traveling over 200 miles per hour. to win, every millisecond matters. both on the track and thousands of miles away. with the help of at&t, red bull racing can share critical information about every inch of the car from virtually anywhere. brakes are getting warm. confirmed, daniel you need to cool your brakes. understood, brake bias back 2 clicks. giving them the agility to have speed & precision. because no one knows & like at&t. welcome back. we wanted to show you a chart of the domestic space index tracked by data partners. it's up more than 20% in the past year. there's moog for spacecraft an launch vehicles and it's
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actually the biggest weighting at 4.8% and harris at 4.7%, mantech international and hexcel and heico. boeing and northrop about 4.4%, lockheed just behind them and tenth is aero jet rocketdyne and evenly dispurersed and proxy to gauge how the sector is doing. for more information the indexes, head to space index? >> why not? i don't know that for but for a handful of the companies that the space exploration movement is decisive factor in there. there's theme baskets for anything. >> yes. >> if you think it's like aviation of 100 years ago and going to be, you know, kind of a -- >> it is, it is. >> do you want to go into space? >> i totally want to go to
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space. >> i'm glad there's people like you, susan. >> yes. there's people using the ideas and fortunes to push the boundaries of exploration for new opportunities and a new space ration. our own space ranger jane wells has more and maybe right side back up now. hi, jane. >> reporter: yes, i am. yes, i have recovered, thankfully. back with my feet on the ground. this is the vertical launch sight here at space port america, spacex and others. the shuttle mixes used to cost on average $1 billion to launch. well, america's in a rocket-building binge on the private side to go further for less money. here's the docket. we have the vulcan of united launch alliance, a venture of boeing and lockheed. american-made enginings and pop out and captures and reused. launching by 2019 at an estimated cost of just under $100 million. much sooner than that, spacex to test the falcon heavy rocket, maybe this year with thrust
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equal to 15 boeing 747s. estimated cost per trip, $90 million. smaller rorkts, exploded on a launch pad two years ago. the new rocket almost ready to launch at a very economical $80 million to $85 million. probably won't take you to mars and blue origin's new shepard. launching and landing in texas. could start manned test flights next year. cost unknown. but of course, the biggest and most powerful rocket isn't privately owned. you own it. nasa's $10 billion space launch system and led by boeing and could go to mars and morgan brennan at kennedy space center to talk about the mission to mars and who gets humans there first? nasa or spacex? back to you. >> it is pretty impressive how much of a real business, you know, these people are willing to make of it on what's -- i don't know. it is like you'd have to invest
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so much just to try to get anything up and running and not working the first time, you're out millions and millions of dollars. >> reporter: that's why it takes billionaires to do it with vision and determination who think that they are, you know, the next -- this is the new aviation. this is the next era in something and want to be whatever it is, the person who's going to make their fortune here and what's interesting is the -- it's been 12 years since the x-prize and seemed to be the beginning of it. virgin galactic supposed to be up by 2009 and so many setbacks and last year we've really, really started to see the momentum. we'll see the next howard hughes. >> don't be a stranger, jane. >> reporter: i won't! >> all right. better not blast off into space. don't try anything crazy. that's jane wells exploring the new frontier for us. the nfl preseason with a shot of controversy over the weekend. colin capper nick launch add
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protest in the national anthem before saturday's game. putting his million-dollar sponsorships at risk. nfl super agent has his take on what it means for the qb right after this. guys, what's happening here? hey nicole, this is my new alert system for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the alert. wow, i guess we don't need the kid anymore. custom alerts on thinkorswim. only at td ameritrade. enepeople want power.hallenge. and power plants account for more than a third of energy-related carbon emissions. the challenge is to capture the emissions before they're released into the atmosphere. exxonmobil is a leader in carbon capture. our team is working to make this technology better,
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welcome back. san francisco 49ers quarterback colin kaepernick sparking a major controversy for his decision to sit out "the national anthem" this past weekend to protest racial inequalities in america. the nfl said the move will not lead to disciplinary action on the field. his big endorsement deals with beats headphones, jaguar lead to any sponsors dropping him, let's
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ask sports agent, drew rosenhouse, who represents players in the nfl. where do you see this going? >> let me start by saying i do not represent colin, so i do not have a biased opinion on this. i believe that this will have an impact on potential new endorsement opportunities. i'm not sure anybody who currently endorses him will drop him because of his decision to exercise his right of free speech. but i'm not sure that he will get any new deals because it is so controversial. very polarizing. everybody has an opinion, but doesn't always work for endorsement opportunities. but i will say this. tr i do think we will hurt colin cap ebb nick more than this episode is the fact the same
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trajectory it once did. at one time, he was one of the biggest sta rs in the nfl and one o the hottest names and he really is a candidate you know, to be a back up. and back ups simply don't make lot of money in endorsements, so that may be an even bigger factor for him going forward. hopefully, he'll recapture the greatness he once had on the field. but until he does, it won't be so great off the field endorsement wise. >> drew, i think that complete lit hits on this part of the discussion, which is that these endorsers don't necessarily, the companies backing him, aren't necessarily looking to reup and maybe new ones aren't competing for it for performance and star power reason, but if we could do a thought experiment, what do you think would happen if one of the leading stars of the nfl that was making this type of statement the way kaepernick is? >> well, anybody who's very
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patriotic is going to be upset when an individual doesn't stand for the national anthem. so, there are a lot of nfl fans many will be offended by this. so therefore, if you're sponsors colin kaepernick, you're going to offend those fans. and that is hey, i give colin kaepernick credit a along these lines that he is obviously making a decision that he knows will not help him professionally or endorsement wise. this will not endear him in my opinion to nfl teams because it is controversial. >> do you think there's a b possibility that there are brands that you know, are more individualistic, about self-expressions that might gravitate towards somebody like this? >> well, there are, but i'm not sure that people will go out and try to sign him.
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because of this simply because right now hooerks not playing enough on the football field. most athletes who get endorsements, right now, colin kaepernick is number two on the depth chart behind gaborik. >> he's had national attention on this move. he's the only one to do this. thanks for joining us. >> thank you. fitness and fashion are the new wave, but fit bit is targeting your business wardrobe and ooempk party attire with two new mode models. those details, next. what powers the digital world. communication.
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that's why a cutting edge university counts on centurylink and why a pro football team chose us to deliver fiber-enabled broadband to more than 65,000 fans. and why a leading car brand counts on us to keep
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their dealer network streamlined and nimble. businesses count on communication, and communication counts on centurylink.
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it's stylish, it's fashionable, it's a fit bit. few have confused it with fine jewelry, but the company's hoping to change that. >> hey there, that's right. fit bit is out with updates of two top accept sellers and this time, with a more fashionable approach. the flex ii is 30% slimmer and waterproof. you can take the activity track er out and put it in one of
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these bracelets here. they also have smart necklaces as part of its jewelry line. the charge ii has interchangeable bands, screen sizes also four times larger as you can see, more information there. company execs tell me they've launched a wearable jewelry line to appeal to their female customers looking for fashion forward options. the flex ii starts at $99. charge ii starts at $149. now, the stock price has dropped 50% this year and while the company dominate it is wearable space with a share of 25% in the first quarter, that's a decline from 33% market share a year ago. company execs are hoping to reclaim some of that lost ground. >> these are materials to sell products not only for fit bit, but an entire category. so, over 60% of our sales since we began were these two products. >> and in addition to these two reboot, fit bit is partnering
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with vera wang on the alta come thg fall. >> would you wear it, suzanne san? >> bracelet didn't look bad. >> see if there's an upgrade. >> i'm on if fence. >> pleasantly surprised. >> thank you for joining us. that does it for us. "fast money" begins now. >> that's munz starts right now. live from the nasdaq market sight overlooking times square, i'm melissa lee. your traders on the desk are -- tonight on fast, it's been quiet out there, but one says brace yourself, a storm is coming. he'll tell us what has him so worried. plus, tesla shares are doing something they haven't since going forward and it could mark a milestone for the stock. we'll ek plain. and later, photos of what could be the new iphone has apple fans going wild. what it could mean for shares of the tech giant, but first, we start off with the best market.


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