Transcripts For CNBC Closing Bell 20140910

Share. And we have got a very big lineup today. Special guests straight ahead, including cnbc boss, former fed chair and nba superstar and also now behind a Venture Capital firm. Car me lo anthony. Thats a nice mix of piece you wont see. All three on together would be a great conversation. I think so. Im definitely going to ask car me lo anthony about the flatt flattening curve. Digital athlete. Watching the markets. Heres the markets as we have it right now. The dow up 43 points. Some buying midday when word got out about a new survey in scotland that showed maybe a majority would vote against independence so our markets picked up some pace there. Dow was up 60plus at the peak. Now up 43. Nasdaq trading higher up 23. And the s p 500 index after the 13point drubing yesterday, up at 1993. Talk about this in the closing bell exchange. Quincy crosby is back with us. Jack barugian. David seaburg and my buddy Gordon Charlotte there on the floor of the New York Stock Exchange. Gordon, starting with you. A slow news day and why suddenly that reaction . Why would the a. R. M. Market rally . Well, listen. Polls are just that. Right . Bill, we have to wait until the actual election comes about. But look. We are just trying to read the tea leaves down here, bill. Including trying to find out why youre not here on the floor. Thats behind whats that all about . Big secret, why. Looking at scotland and the sneaking up of rates here since labor day. Of course, a lot of buzz on the floor about the ipo coming next week. And then theres a lot of conferences around. The apple conference. Companies talking up the book ahead of earnings so were sort of locked in here trying to figure out whats coming next and seeing a little bit of retracing of what we lost the last couple of days. David, same question to you. Why do you think markets turned higher . Do you think thats not the reason why we have seen the dow up 50 points on the day . Yeah. No. I think thats part of the reason why we have moved higher here a little bit but i would say to you, kelly, you know, we are still in the a complacent tape. People hanging on to a thread of information they can. Currency head winds can be an issue. Look. I think that, you know, whats interesting on our desk today and seen some hedging, a little bit of hedging in the russell 2 and seeing hedge funds place bets of Downside Risk there which i found to be pretty interesting this morning and watched it play out a little bit. Is it early signs of a setup to a possible that there could be a possible selloff near term . Absolutely. David, have you seen that . I believe theres a david, we havent had a 10 correction in 2 years. Have you seen that kind of hedging before when it didnt pan out . Yeah. We did see some hedging and interesting of 10 because the hedging we are seeing right now or the setups that we are seeing arent indicating a 10 but a slight Downside Risk. Theres expectations that there will be an underlying bid to the tape so maybe a 5 or so pullback which is not that deep or significant. Yeah. Well no. 4 is new 10 it seems on that front. Jack, you have to admit looking around at the markets today and the places seeing strength like market which is trading off and struggling in terms of sales growth, doesnt necessarily get you excited, does it . Or otherwise, does it seem like the quote unquote wrong names are rallying today . No. We have to understand whats happening here. The selling pressure coming from europe. It seems to stop on the european markets close. Dollar denominated selling. Look at the portfolio managers, whether theyre european or japanese portd folio managers, they beat the bogey for the year. Up 15 to 20 in the year along with the equity appreciation. Thats a bit of a head wind and keep in mind what were also seeing is a situation of Interest Rates becoming in flux. If thats the case, and, kelly, this is very important to keep in mind, what we are going to see is decoupling and very messy and when it does happen it is very bullish for equities. What decoupling are you talking about . The fact of stocks and bonds in the same direction now for a while. If we start to see them go in opposite directions, which is the normal way and the normal pattern of what we should see, then we should see some large Strategic Asset aloe cases, money out of fixed incomes into equities. Thats a pattern to Pay Attention to over the course of the next couple of months. Rick is not here and would tell us how sloppy the 10year auction was today. 250. 37 the bid on that when all was said and done so yields are moving up. We see there 253. 4. Quincy, you are pointing out that maybe the market is looking for a new catalyst for a trend here. What do you think that would be . Well, you know, very much to get the new trend coming out of the earnings season. Thats going to be important revenue but also, obviously, what the fed says next week. It is one of the most important meetings i think in modern economic financial history for markets. What we need to hear from her is whether or not she sees a change in the economic landscape. And if she does, rates will move higher. The market seems to have been very, you know, clear. Weve got through the idea that qe is going to end. That made the market nervous initially and then the markets going to have to kind of digest the fact if activity picks up, the rates move higher. Its going to be volatile and ultimately top line Revenue Growth wins out and that will be the catalyst to get us moving higher. Quincy, though, why do you say that the meeting is so important seeing the conditions kind of moving in this direction for sometime now . Why does so much rest with what happens next week . Because, because it is a meeting in which chair yellen has an opportunity to lay out the game plan. They know the market is waiting for it. Right now, you see a differential at work with draghi pushing the euro down. Pushing the dollar higher and need to hear from her the path. The markets waiting whether or not she takes out low rate farce long time. By the way, you know, there was a rumor out today that maybe they remove in their next communique that language that suggested that rates would remain low for a prolonged period of time and take that out. Its going to come out and be changed. The hawks and the doves want to see a change in the language. Gordon, what would that do to the market, do you think . Is the market is it tend to be dovish and see rates remain long low for a long period of time or are they bracing themselves for this inevitable rate rise . Bracing themselves but the thought of the qe was the end of the earth we got through it. What about you, gordon . I agree with quincy. The next weeks policy statement is going to be skrutized heavily and very likely the language referring to and what will end up happening, though, seeing a knee jerk reaction and cooler heads prevail and wont anticipate too large a move and too large a shift of equities so, again, get back to top line growth and look to earnings season. If there are people placing bets in the market for an equity selloff here, do you think its around the risk of the language changing of something comes out of the fed meeting, laying out a strategy for higher rates. If thats the case, what about the goldman note today saying, higher rates dont worry . Yeah. Well, look, i do agree. It could be hedging ahead of that and derails the tape a lit built. No doubt. I think the most interesting thing and we talked about it in the past is divergence of a large cap versus small cap right now. Larger Companies Leading the way. I think you are not going to see a selloff into large cap in year end but a massive catch up and the people that want to make the bets and want to make the leverage trade are buying the smaller cap names and close that gap between the performance, between the two. So i think well probably have a near term pullback and maybe next week. What do you do in that situation . I think there are buyers on dips and small cap names in the russell 2 in hopes to see an acceleration versus other indices. I should remember who this was but an analyst raised the price target on the s p to 2350 for next year. That was piper jaffrey. It occurred to me, jack, we have never gotten a price target from you. What are you expecting end of the year for s p . I was on Larry Kudlows show and talking 2150. I think next year 2350 or 2400 is attainable and not a percentage increase at that point and you know, the other thing to keep in mind is that when we start to correct, people have to keep in mind a 5 correction at this point is 100 s p points so we cant get scared by the big price moves. All right, guys. Everybody, thank you for your thoughts today on the markets. Appreciate it. No running, gordon, by the way. No running. I dont know. You never know what happens around here. 50 minutes to go. Up 61 points. S p adding about 6 and nasdaq up 33. We have a red alert on Interest Rates. Steve liesman warned us about this yesterday. Today, former fed chairman greenspan tells us if janet yellen is ready to change course on Interest Rates. Alibaba going gang busters on day two of the road show. Is this a sign of an overheating ipo market . The pros weigh in. Cbs ceo moonves speaks in new york city. Les is always interesting. Always candid. We love having him on. Hell be up in a moment. Whenwork with equity experts who work with regional experts thats when expertise happens. Mfs. Because there is no expertise without collaboration. Welcome back. Its a big week for cbs chief les moonves. Tomorrow night is the first of thursday night football broadcast. A deal with the nfl moonves was involved in making and tomorrow nights game includes the reins, a team, of course, embroiled in the ray rice controversy. He did let go of the u. S. Tennis open which im sure david favre will ask him about. He joins us now to sit down exclusively with cbs president and ceo les moonves. David . Yes. Thank you. We can talk football, u. S. Open. Thank you for being here. My pleasure. With ratings, you started the presentation on ratings and, you know, theyre down across the board for it seems virtually everybody who makes programs that people watch on tv. Is this a longterm trend or not being measured properly . Well, i think i think were looking at the world very different way than we did before. People are still judging it from overnight ratings and the truth of the matter is now were measured in a c7 universe whereby you have to count people watching the show the next day or even the next week. So, more and more viewing is going on online, dvrs and other places so i dont think its being counted properly. I dont think its reported properly. Does that mean you have an issue with nielsen . You wouldnt be the first ceo of a major media company. We have won the last 11 seasons so as i like to say the winning team doesnt argue with the referee. You know . So we have no problem with nielsen. Nielsen has moved very quickly to get these online viewers, to get viewers from dvrs and count the appropriate amount of people. Are they there 100 . Not yet. Soon doing that and as soon as thats all done, youll see just as many people watching television as ever before. Really, if i look at the year over year, then i start to see increase or flat . I believe when you look at our ratings at the end of the year, if everything is counted in, you will see at least flat and possibly an increase. When do they get around to do that effectively . Theyre getting there quickly. I expect it theirly shortly. Not exactly when. Nielsen caught up. Look. Theyre the only measuring stick we have and we swear by them. Nice if there was another measuring stick. Thats the way the world is. Are you going to win it again . Are we going to win it again . No predictions. With thursday football we should be stronger than before. I think we have a very good chance of winning it again. You mentioned football. Youre going down, i believe, to the game. Correct. Some issues right now, of course, controversy involving ray rice. More so also the response of the commissioner. Right. Youve got a longterm relationship with this league that is extremely important to cbs. Are you concerned at all . Yes, it is. Look. We have a longterm deal. No, im not searched. Look. I think the commissioner eer b admission was too lenient and corrected himself fairly shortly thereafter and took the appropriate action. He is now suspended indefinitely. The reins cut him from the team. It was horrific. Here to believe see. Horrible to hear about. But the nfl is still an important part of america. Its still an important part of cbs. It certainly is. Not just on sunday but now on thursday. Now on thursday. Twice a week. For i think nine eight games. Eight games. You happy with that deal . People said you paid a lot for it. I love that deal. Id extend that deal today for ten more years if i could. Why . Well make a profit on it and in addition to thursday night tightens the schedule, the ad inventory. Enables us to move the Big Bang Theory for six weeks over to monday to strengthen that night. And well have more originals throughout the season and we think having thursday night football is a grand slam home run. And were very proud we have it. And i mean, obviously, another nine years to go on this deal, right . Correct. You believe this league will be able to maintain if not increase the value over that time . The nfl is proven to be the best thing there is in television. Thats why people are paying so much money and yet we still make a profit. The nfl is basically invincible. The numbers keep going up just about every year. The product is something people cant get enough of. Im really happy we have a longterm deal with the nfl. We had our Opening Sunday, this past sunday. It was the largest Opening Sunday for us in 16 years. So, theres still great demand for television for nfl. And demand for Television Overall by those who advertise on it, one of the key concerns here if you will is always going to be the ad market with a bunch of media ceos in one place. Digital siphoning off is a key theme and there was a softer up front. Many say, well, it goes to the scatter market. Are you concerned that advertising pricing is soft . Not really. You know, our up front was down in terms of volume. 4 or 5 . Cpms up mid Single Digits to say we have to sell 70 25 versus 21 of our inventory in scatter doesnt worry us at all. In 11 of the last 12 years, i believe it is, scatter pricing has been higher than the up front pricing and to sell a few percent more, having the schedule we have, im very excited about the year. Once again, in every marketplace, there are winners and losers. As i said, very pleased with the cpms and volume down very little. The new normal to sell less in the up front . Probably. You know what . Ive been doing this a long time. There are good years. We sold up to 80 and there are years you sell 65 so selling mid70s, not bad. Not bad. Youre not really seeing significant softness. We have done interviews and periods where, obviously, things were not great. You have admitted that. The season begins in a week and a half. Ive been there. Sold the inventory for the up front and then the scatter is sold when the season begins. Tomorrow night beginning football. A week from sunday beginning the regular season and the scatter comes into play and see if theres real softness. Scale. You and i have had this conversation to a certain extent, of course, a year featured our Parent Company comcast and a potential acquisition and at t buying directv. Came up a lot when time warner was in play, sort to speak or fox trying to buy it, you feel youre big enough . I absolutely do. Look. We feel very complete. We love our assets. We have cbs, showtime, simon and shuster, a lot of television and radio stations. Nobody can exist without the cbs content on their air. Yes, comcast is going to get bigger. At t going to get bigger. We have to negotiate with both of them. They cant live without your content. They cant live without the energy and the Big Bang Theory. Going to administer that beatdown of Time Warner Cable as a part of comcast . Comcast will be bigger and stronger but Brian Roberts and i have always worked out a deal. Something thats been around and not that this is any chance of happening but i viacom and cbs getting back snogt. I highly doubt it. Viacom is scuffle. Cbs is successful. Both thriving independently. They want to stay apart as do we. Love that same controlling shareholder, too, right . Same controlling shareholder. On the portfolio, we spoke on the day that outdoor went public. That is since been spun out. Spun out. Yes. Looking at the portfolio, one thing to stand out is radio. Is that potential the last piece that you might consider . Simon and shuster also selling. We own 127 some odd radio stations. I think you might see us try to trim down radio and that some of our radio stations arent in major markets. We believe in radio. Slow growth radio. Not as fast as other businesses. We like it. As i said, you might see a reduction in the number of radio stations. Not necessarily figuring out how to spin it to shareholders or sell it . Highly doubtful, highly doubtful. S if it is a content business. Its a great business. Radio is a content business. We have developed our Sports Radio Network which works in concert with the other divisions. Cbs Sports Network and cbs sports and showtime. Valuable content. Talking about content, letterman stepping down. Colbert stepping in sometime next year. Sometime next year, exactly. Who is james cordon . He is one of the most talented individuals ever. He was on broadway. Wellknown guy in great britain. 35yearold. One of the funniest, most charming, most entertaining comedians, song and dance man, interviewer, talk show guy. Great to bring to america somebody that people dont know and in for a surprise. A benefit in a way that not many people really know who he is taking over the latenight sflam. 12 30. A different time period than it was. I think it is great to take a big swing at the plate. I love doing that. We really believe in this guys talent and yeah i think we can have a great time with it. Leslie, thank you as always. Thank you. Very much appreciate it. Back to you guys. David, thank you very much. Dont miss davids exclusive interview with sprint Ceo Marcelo Claure tomorrow right here on cnbc. Looking forward to that very much, as well. 35 minutes left in the trading session here, miss evans. The dow up 63. Were back close to the high for the session right now. Yes, we are. Coming up, remember this radioshack ad of last years super bowl . What . The 80s called. They want their store back. Everyones watching to see what you will do ah, yes. That was a viral hit at the time but it appears, bill, didnt work. No. One analyst saying the shares and another analyst saying theyre going to go to zero by the end of this year. The prospects of the companys staving off bankruptcy. Take a closer look at your fidelity green line and youll see just how much it has to offer, especially if youre thinking of moving an old 401 k to a fidelity ira. It gives you a wide range of investment options. And the free help you need to make sure your investments fit your goals and what youre really investing for. Tap into the full power of your fidelity green line. Call today and well make it easy to move that old 401 k to a fidelity rollover ira. Turned to green heading into the close with the dow up 60. 57 points right now to 17,070 or thereabouts and the s p rebounding some of yesterdays losses adding 5 points, 1995 the level there. 7 points, im sorry. The nasdaq up by almost 32. Yep. A pretty good gain there. Dom is paying close attention to movers right now. Stocks near the session highs. We start with whats happening with apple. Moving back above 100 a share. Thats a day after it unveiled the new iphones, apple pay Payment System and of course that smart watch. Near session highs up nearly 3 and got back every dime of what it lost yesterday and more. Ebay to a neutral rating from an overweight citing competitive pressures. Down by almost 3 . A tough day overall for the Energy Stocks, as well. Oil prices continuing to slide. Hitting 17month lows and see that oil complex there, the majors especially, taking a bit on the chin and caterpillar losing ground. Downgraded the stock to a neutral citing Slower Growth outside the United States and end with two Bio Pharmaceutical Companies rising on positive drug news. Nps pharma with a strong fda review and pharmacyclics for a blood cancer drug. Thank you. And then theres radioshack down 12 today. Can hardly afford to lose anymore ground to this point. After yesterdays dire warning from brokerage firm, kelly. Yeah. Thats right. Morgan brennan joins with us the story behind the latest call. Morgan . Shares tumbling today after Wedbush Securities cut the price target to zero. Saying bankruptcy could be imminent for the Electronics Retailer and shares worthless before the year is out. So despite turn around efforts, radioshack faced competition of ecommerce sites and the plan met with opposition of creditors earlier this year. We took to the streets of new york to see what actual consumers think so take a listen. It just feels smaller than some of the bigger places that may offer a lot more. And so, i imagine finding what i need in one of the bigger places. I think the overall management needs to think a little bit more about the horizon and how they can expand in terms of customer service. I feel like, you know, they always have what they need but theyre a small store. So radioshack suffered losses the last nine quarters and after the stock fell below a dollar earlier this week, the New York Stock Exchange issued a warning in july that the company had six months to get the share price back over a buck or face delisting. Taking a look at radioshack today. That stock is trading down nearly 12 at about 83 cents a share and less than 100 million market cap and watching closely. Reporting Quarterly Earnings tomorrow morning before the bell and Analysts Expect another loss. Kelly and bill, back to you. Thank you. Yeah, i was going to say call it earnings at this point . Thank you, morgan, for that. In a strip mall nearby house there was a blockbuster and theres a radioshack. Is or was . Blockbuster all gone. A restaurant moved in there. You wonder whens going in where the radioshack is right now. Ive seen a similar thing. I think theres a rentacenter where the blockbuster was in my town and nowhere to find a physical dvd. Why would . I was its a long story. We have got, lets see, 28 minutes and the market up 55 points today after two days of losses. President obamas gearing up for tonights prime time address to the nation which you by the way will be able to see here on cnbc 9 00 p. M. Eastern time to fight the isis terror group and what to expect coming up in just a moment here. Later, former fed chair Alan Greenspan, his take on the economy, interest ratds and much more. Stay tuned. Around the world dont have enough food to survive. We cant let this happen. There is something we can do about it. Please join Christina Aguilera and yum brands in a movement to fight world hunger by supporting the United Nations world food program. To donate, go to hungertohope. Com or make a text donation right now. Your contribution will feed children and save lives. Together, we can stop the dying and start the living. And together, we can move people from hunger to hope. Its in this spirit that ingu u. S. Is becoming a new kind of company. One that helps you think differently about whats ahead, and whats possible when you get things organized. Ing u. S. Is now voya. Changing the way you think of retirement. Welcome back. 25 minutes left. The markets trying to gain back some of what we lost yesterday. The dow up 57, just off the highs of the session. The s ps up 7. 5. Nasdaq with the best day of the mayor averages up almost 32 points right now, kelly. And the president preparing to address the nation tonight about the threat of isis and the name isis a tough one to have these days, especially on the front door of a business. And there is that case right now. Jane wells joins us with a special on what theyre doing to cope. Imagine if its the ticker name. The president says isil and the media says isis. It is the name of a powerful egyptian goddess and taken on by women that face a dilemma. Last week isis mobile wallet changed the name to softcard and then theres isis pharmaceuticals. 25 years old. The spokeswoman says that the company did have internal discussions about changing its name but decided to ride this out, even though the ticker imboll is isis. Quote, we have seen very little impact to the business and not hurt the stock over the last few months and adds theyre more cautious traveling. You dont want a driver at an Airport Holding a card of isis. Then there are the people named isis fighting back. Go on linkedin and type isis and almost 10,000 results including isis martinez. My name is isis. I love my name. Or so i loved it a lot more before. Martinez found a Holistic Health club and has a petition to refer to the group as isil and some said she uses the middle name. Teresa. She doesnt want to. Go on cnbc. Com calling martinez a hero. An iranian american and named his 3yearold isis and says while she is too young to be teased hes being subjected to beheading jokes. Quote, the whole situation is horrible on so many fronts. Guys, back to you. But im looking up. There is a company thats got isil. There is an isil out there. There you go. Well have you back for that report, as well. Okay. I thought the group changed the name to Islamic State. Just is. Exactly. Thank you, jane. Thank you, jane. President obama is gearing up for the prime time speech tonight to talk about the threat of isis and what the United States is doing to combat the group. Talk about what to expect from the address. Bring in sarah fagan and jimmy williams. Welcome to both of you. Sarah, the question is, how aggressive the president plans to be and how much he will involve congress in the Decision Making process, right . I think you are going to see the president be much more aggressive than he has been and needs to be. The country is hungry for his leadership on this issue. We have seen a remarkable turnaround in a matter of just a couple of weeks. From a very war weary country to one where now 60 plus percent of the u. S. Population says america should intervene and do more to combat the threat of isis. I think with respect to congress, congress isnt sure what they want to do on this issue. Right. They have the parties are pretty split on both caucuses right now as the members of Congress Head out to the midt m midterms. Some want and willing to take action on this. Others like to hide behind the president on it. Jimmy, given that were going to need that approval and some way, shape or form for the president to move forward, where does that leave the relationship between what we might hear from the president tonight and what congress is likely to authorize here . Well, dont be shocked that sarah and i agree on this one. It sends massive waves through the market right now. We agree the president needs to do that. Its simple. The president said i would like for you to tell me how you will proceed on this. They punted. Isis is stronger a year later. Its simple. The congress is the one in charge of funding war. Theyre in charge of funding when we go and bomb other countries and other people. And so, the president can do that all day and the congress has got to pony up and they have got to take a vote. My understanding is theyre about to pass a continuing resolution to keep the government open through december 10th over mark and may put that authorization for that into the cr. Thats to be decided. Authorize the money the question is what l they authorize whats need, a declaration of war. I get the change in sentiment when you ask people whether they would invade syria last year and they didnt want to do that but go after isis this year. Last year thats about invading a country and know how it turned out with iraq. This year it is about going after a Terror Organization beheading american journalists and a totally different story, isnt it, sarah . It is a different time and amazing the impact that these two tragic beheadings had on the public psyche. First one is sad and tragic. The second one was really a wakeup call for the American Public and as you pointed out, you know, people didnt want to go into syria last year. They very much want an aggressive president obama to act against isis. All the same, jimmy, the fact we didnt aggress it, however you want to describe syria, at the time is one of the reasons dealing with the behaviors of this group ever since. Even by trying to now address the Islamic State in some way, shape or form, are we getting the root of the problem . Thats a middle east problem but and im pretty sure our record on middle east problem solving is not as good as it probably should be and that goes back generations and decades. However, it doesnt mean that we should ignore this threat. This threat is real. Its there. We know there are at least 15 americans left to go fight with isil so the bottom line is american passports. If they try to come back and get in the country, that is a threat to america and by the way, the ic the amicto be worried about wha happening in the middle east 70 of the public in o public l believes that isis militants right now today are living in the United States. That is having i think a dramatic impact on the public pushing the president and pushing the congress to do something aggressive on the threat of isis. And i think the thing thats most important about this speech for president obama tonight he has to clearly pass a bar that he has a strategy. He made a huge error saying he didnt have a strategy to combat these terrorists. He has to pass that bar tonight. If he does it, it could be a very good speech for him and a very good evening for him tonight. See what happens. Good to see you both. Thank you for joining us. Thank you. On that important issue. You will be seeing the president s speech here on cnbc at no time on 9 00 p. M. Eastern time. Right here, 18 minutes left in the trading session with the dow up 58. Its the nasdaq bounced back smartly up 33. And coming up, from the hard core to wall street, basketball star Carmelo Anthony talkings about his fund and why he wants to be known as a digital athlete and an allstar investor. E financial noise financial noise financial noise financial noise i make a lot of purchases foand i get ass. Lot in return with ink plus from chase. Like 50,000 bonus points when i spent 5,000 in the first 3 months after i opened my account. And i earn 5 times the rewards on internet, phone services and at Office Supply stores. With ink plus i can choose how to redeem my points. Travel, gift cards, even cash back. And my rewards points wont expire. So you can make owning a business even more rewarding. Ink from chase. So you can. Welcome back. Markets converting some early losses into gains as the bounce back from yesterdays declines, bob. Whats going on . Highs of the day, tech stocks leading the way. Everybodys talking about energy. Put up the full screen. We have weekly oil numbers and inventory levels are very, very high right now. Brent crude which is the benchmark as a 17month low and pretty simple. Lower demand globally and plentiful supply thanks to developments going on in the United States. Little wonder that Energy Stocks have been lagging the market. This is going on for a while but really accelerating. We are sitting now. Threemonth chart, fourmonth lows in energy. Energy is a real drag on the major indices. Thats a problem for some of the smaller names, these shale play names that you can see like in the basin. Whiting petroleum. Down for days now. Positive territory now and west texas intermediate 91, into 80 or so, its less profitable to drill in these areas. Thats a concern for these kind of stocks here. Big energy, a real drag on the dow this month so if you look at exxon, chevron, the s p is basically flat but exxonmobil chevron down. 6 and 4. 5 respectively. The problem is a visibility problem for the companies. If you cant figure out what the global gdp is going to be and you dont know what the Global Economy is looking like you cant figure out what oil is. How can you understand where oil demand is going to go if you think the Global Markets going up, global gdp is going down . The good news is, of course, lower energy. Great for consumers and good news in general for the u. S. Economy. Ill believe this sea change in energy in the United States when i start to see a meaningful decline in gasoline prices. Not seeing that yet, though. It is sticky. I agree. Could be going below 30. Andy lippo is saying. By halloween. That would be nice. I would be delighted to see that and make headlines. Id take that trick or treat right there. Exactly. That would be the treat. 12 minutes to go. Thank you, bob. We have got the dow Still Holding a gain of 54 points. A green arrow across the board here, bill. The roadshow of alibaba, already enough orders to cover the 21 billion initial Public Offering and only in the second day. Good news or a sign that the ipo market overheated . Stick around for a look at the ipo coming up. Rogram that partners businesses with universities across the state. For better access to talent, cutting edge research, and state of the art facilities. And you pay no taxes for ten years. From biotech in brooklyn, to next gen energy in binghamton, to manufacturing in buffalo. Startupny has new businesses popping up across the state. See how startupny can help your business grow at startup. Ny. Gov wait, wait, wait, its wait, wait, wait. Whoa, does she have special powers when she has the shroud . No. Guys . Its the woven one the woven one. Oh, oh that gives her invincibility. Guys . No, no, no. 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Art cashin was telling us that there is no bias up or down toward the close here. They pretty much paired off any of the lastminute orders right now and the dow up 56 and the nasdaq up 33. Joining me right now, a look at the markets. Abigail doolittle and tom forester. What are we waiting for do you think . Well, you know, i think the markets are starting to look at qe coming and. One of our concerns out there. Basically next month. Winds down. The feds been pumping money for quite sometime and we think it boosted markets tremendously. Well see what happens once it finishes. Probably know in another two months. A lot of buzz, abigail, of the alibaba ipo, the roadshow began this year. Its oversubscribed and going to be the biggest ipo in history. For you that raises a warning flag, though, doesnt it . It does. May come as a surprise. Its not about calling a market top but the likely downside reaction out of the frothy bull market. That being said, this ipo seems so hot. Hard to think its not a market top signal. It tells us that mart people on the inside are cashing out while the ipo window is open. Doesnt mean it will close in 2015 but there is some sort of a run for the exit feel to this and hard to think thats bullish for stocks over the long term. You have an unusual number of insiders selling but you have to point out that this is a 15yearold company and not like they have been, you know, theyre not exactly flipping their shares here. Theyre waiting patiently all this time. That is a good point and a Mature Company and taking a prudent exit possibly. On the other hand, the fact its coming in this year. The hottest ipo year one since 2000, hard not to put the connection that things are maybe frothy here and you have an on scene investor demand for return and it happens to be alibaba ipo going off. Do you see broad implications on the alibaba ipo, tom . In 2000, some people thought the ipos in 1999 and 2000 that broke the market in 2000 of people selling shares in normal companies to get cash to invest in ipos and might be seeing something similar to that happening here. Well know getting it off the ground at the New York Stock Exchange there. Hang on, folks. Bringing both of the guests back here and closing countdown heading toward the close for this wednesday and then after the bell, Alan Greenspan and Carmelo Anthony. Not together but in the same hour. Right here on closing bell. Shes still the one for you. And cialis for daily use helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. 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What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. About three minutes left in the trading session. Here, the nasdaq the feature today. It was hard hit yesterday. Accommodating back here a gain of 33 points. After yesterdays decline up and its been the better performer. Apple has helped. Big day, of course, yesterday for apple. It was downgraded by one analyst after the introduction of the new iphone and the apple watch but the market ignored that. Up 3 right now at the highs of the day of 100. 10year, yesterdays treasury auction for 3year notes sloppy. Same thing lackluster demand for the 10year today and the yield has moved up now to 2. 53 . Back here with tom forester and abigail doolittle. Abigail, do you see rates higher here . We are at the upper end of the range here recently. Right around 250 or so, there is descending resistance and suggests well see a move down lower as bonds rally. No, i dont think we see rates go higher here and i think theyre lower, below 2 and i dont think its a race for spread of the sovereign bonds and reflecting a flight to safety ultimately. Tom, do you agree . We agree with abigail. We dont think that the fed did the job. A great job in boosting the stock market and not lifted the economy and we dont think youll see huge increases in Interest Rates. Even as they end their bond buying program, you could still see the yield go lower. I mean, in other words, the price will go up and not doing much of any buying here. Yeah. The fundamentals of the economy havent picked up as much as they should have. After throwing the trillions as we have at the issue. And we think thats going to be the driver of Interest Rates going forward. Abigail, David Seaberg said he sees the market doing well into the end of the year and most of the secondary stocks, he sees them playing catch up with the blue chips by the end of the year. You are skeptical of the market right now. What do you think . Thats hard for me to buy, really. Especially looking at the technicals right now. Hitting up against various points of resistance. Selling pressure and more likely than buyers stepping in to send stocks higher, i think we see similar pressure similar to earlier this summer. Copper has broken Long Term Support and i think we should see something similar in the stock market. Thank you both for your thoughts on todays Market Action. Thats going to close out the first hour of the trading of closing bell today with a gain of 53 points on the Dow Jones Industrial average. Stay tuned. Alan greenspan and athlete Carmelo Anthony, the digital athlete, coming up in the second hour. Ill see you tomorrow. Thank you, bill. Yes, welcome to closing bell, everybody. We have a busy hour ahead. Heres how were finishing. Dow jones industrial average adding 54. And the s p up 7. Helping the nasdaq today might be performance of apple finishing up a couple of bucks. Lets bring in todays panel. Joining me is stephanie link. Chris wallen, our very own kate kelly and with us with more on the Market Action is trader john najarian. Welcome, welcome, one and all. Great to be here. Stephanie, is this just a snapback effect . The market is under pressure for a couple of days, rates moving higher. Do you buy, in other words, the rally today . Theres two things to look at. Oil prices. Oil prices down 15 from their high. Now, on the negative side, people say thats Global Demand slowing but i would say on the Positive Side thats good for the consumer as well as for corporate profits and the input costs are coming down and encouraged by that. Number one. And number two, the banks, financials. They did really today pretty big time. A little of that probably apple and the new Payment System and volume growth. A little bit of 10year and the companies at the barclays conference and saying, okay, some good and some bad. I should tell you the fed talking about greater capital surchar surcharges, right . Every one of them said theyre already booking for, expecting for higher capital levels. Not saying theyre out of the woods but not saying gloom and doom. For today but for today, what im looking at are two important parts. No growth stocks. Big caps. Go up when rates go up. Im talking about the regionals, the credit card companies, im talking about the reits and plenty of areas large banks, no. No growth there. Mike microsoft. Microsoft shares have done all right lately. But what im saying is dividend no growth, no innovation. Nothing new kind of stories. But if you look at what apple is doing with the payment structure, you can make a case that the credit card operations of the big banks might see better volume growth. You never know. Thats a point. We have financials. We have the commodity point that stephanie raised. That space so many conflicting signals. You have iron ore plunging and the baltic dry and the farm along with the soft commodities. Iron ore is one of the worst stories of the year if youre long iron ore and people thought that the losses stabilize but apparently not and a construction story in china where construction decelerating alongside gdp in general in china and china always is a good indicator of commodities in one way or another. I think i agree with stephanie, absolutely, on Profit Margins and benefit for a lot of companies as oil is cheaper. At the same time, you know, its interesting. Commodities has defied expectations in some ways and in this reinvestment cycle right now. We are going to see, you know, a buildup over a course of years and commodity producing companies youre talking like this is a normal market. Equities have gone up because of low rates. Low rates have been fueling it. Clear dynamic. If rates were to normalize, then you go back to a story thats based on fundamentals. Heres a question. Are you buckling the seat belts for fmoc next week . No. People think janet yellen is taking a hawkish tone. No. Not if you follow the commentless at jackson hole. Shes fixiated on employment. The fact of a Old Fashioned keynesian kind of way. Thats what i want dr. J to weigh in on this. Are you looking at a regime of higher rates . No. Im not nor have i been, kelly. I agree with the other panelists. I dont think we see that next week. If i look at things that do worry me, the president s statement tonight, obviously, thats one of the things the world should be focused on because both what happens in the mideast as well as ukraine are going to be significantly greater effect on our market majority term and long term than janet yellen and the fed. Why is that the case when it hasnt been true at least up until now and perhaps aside from certainly some of the market volatility we saw around the Russia Ukraine situation and with regard to the Islamic State, if anything, its incredible that oil prices have performed as poorly as they have given that backdrop. I want to chime in on this when hes done. Yeah, yeah. I agree. Im surprised oil prices performed so poorly heartened and not surprised at the resurgence of america as an exporter potentially now of oil. This is the thing, though, jon. Shale oil has become so reliable and so plentiful here in the u. S. , thanks to north dakota especially, that in the eyes of one major commodity analyst of squawk last week, were at Energy Independence and theres talk of five years and ten and very close right now so the fact that we have such strong supply and deexcite the geopolitical issues, this is the stunning thing talking about president obama addressing the nation about isis tonight. Despite geopolitics, we have a much more stable bed rom of supply. Is there anything new in the middle east . Except for the beheadings, has anything changed . We have chaos there for years. In general, yes. But the specific issues, libya being unstable for three or four years, when they produce 2 million to 4 Million Barrels of oil a day. Thats a huge concern. Russia is much more important to this equation. I agree. We have to watch that. Sure. Absolutely. I agree. But i would just point sorry, jon. I would point out the lower commodity costs, thats a positive. Consumer is 75 of gdp. To the extent to put more money in the pocket and an environment of no wage growth. Retail season. Yes. I think thats encouraging. You can play into a strong dollar, strong u. S. Story. Worried about a potentially emerging market. We have the move on in a second. Just, dr. J, a last word on markets broadly, you know, what trades do you like at the moment . Well, i mean, stephanie and i both love i think the insurers. Thats safe to say without the words in your mouth, steph. Yep. Even in this rate environment . I do, yes. I think i dont think were in a rising rate environment yet. Just wait. Yeah. But again, pressure is coming from around the world on our rates to the downside. Not to the upside. But as far as the worlds biggest consumer of fossil fuels, thats us. The more of this independence we just addressed, the more demand around the world would have to fill that gap. It isnt, of course, because theres not that big of a consumer other than us and for that reason those prices are dropping. So the middle east i worry about it from a terrorist standpoint and the impact could be in big cities in the developed world. I dont worry about Energy Prices based on the mideast like we used to. Understood, understood. So its microsoft. We want to shift our focus to here for a moment. We talked about the nasdaqs outperformance today. Apple a big piece and ap toll the upside of talks of minecrafter computer game creator for 2. 5 billion. Will the big bet pay off for microsoft . Joining us is tim. Microsoft focus making big moves as mentioned in its share price. This, though, still not a huge acquisition in terms of moving the immediateneedle for microso it . I think you nailed it there, kelly. Essentially for a 380 billion Market Cap Company to buy something with about 300 million of revenue and buying it, its less than than 1 the value of microsoft. When you make an acquisition like that, you hope that its something thats going to move the needle for a big company and i dont see what that needle is or that movement is from, you know, how minecraft or moji fits into microsoft. You play minecraft . No. I dont have time. I would if i have time. Hes absolutely right. Getting growth this big is extremely difficult. Interesting acquisition. Popular. They have 86 billion in cash. That is swedish company. Theyre going to be probably seven times sales and not extreme. 54 million users. The company has growth. Not going to move the needle but a move from the team to focus on cloud, focus on xbox and mobile and thats what the Growth Initiative overall is for the company and 13 times, 14 times forward estimates it is positive. Putting in it that context, relatively inexpensive deal for a company like that as you said access that youth market. Right. I think its some ten years since they made the halo deal, for example. Its a very long time since they have actively engaged in acquisitions of the video game space and clearly trying to revive those efforts. I think its something to watch in terms of a leadership signal and a possible new market if nothing else. We would love for cisco to do Something Like this. Im going to take it for what its worth and putting money to work and a good thing. The old days they did that, it was confusing. I almost ran an isp. Just bought the company and hadnt blueprinted it yet. Oh wow. I think the shareholders we wouldnt mind if they return the 2 billion to us. Go ahead, tim. Yeah. You know, shareholders, unless its an acquisition to move the needle of this large company, we would rather have the cash back to us as shareholders. Just because hes making a move doesnt make it a good move and litany of previous moves that microsoft made and not exactly increased shareholder value. Thats a good point and the confluence of cash on the Balance Sheets is a theme. Obviously, a theme that hedge funds okay viss seized upon and others, as well. Before this i was on the phone with someone involved in auto back abs structuring and saying, you know, Tech Companies are getting into this more and more and need to put the cash to work. Tech companies are buying Asset Backed Securities . Google. Why not . Microsoft. The today show huge apparently in silicon valley. As a Balance Sheet management. Where do you get growth . Im just so glad you mentioned that, that we need to do a show on this. Tim lesko, thank you very much. Well leave it there for the time being. Our thanks to jon najarian, as well. Catch him with the rest of the crew at 5 00 and a street fight against dan nathan so dont miss that. All about the phones for all the headlines about the apple watch and apple pay. Next guest says the only when the day is done, only the phones matter. He has the numbers to prove it. Alan greenspan has some concerns about the state of the economy. Hell share them with us just ahead. Youre watching cnbc, first in business worldwide. Theres a difference when you trade with fidelity. One you wont find anywhere else. Onesecond trade execution. Guaranteed. Did you see it . In one second, he made a trade, we looked for the best price, and the trade went through. Do the other guys guarantee that . Didnt think so. Open an account and find more of the expertise you need to be a better investor. With the top speed of comcast business internet. Well, theres really no comparison. Why pay more for less . Call today for a low price on speeds up to 150mbps. And find out more about our twoyear price guarantee. Comcast business. Built for business. Bulldog ibut my friends i are learning skillsnt that can change a life. Thats why mattress discounters good deed dogs is raising money to help train dogs like suzie to engage students in schools and special education classes. While ginger visits folks in the hospital offering quiet comfort. With your help, we can do even more make a donation at mattressdiscountersdogs. Com or any mattress discounters. Mattress discounters good deed dogs helping dogs help people. Welcome back. We begin with dominic chu and a quick market flash. Dom . First of all, shares of jds uniphase are halted in the after hours with news that theyre going to separate themselves into two separate publicly traded companies and a tax free spinoff. One of the companies is going to be an optical components and commercial lasers company. The other one is going to be a network and Service Enablement company. The standloan company for that particular business will be a leader an i dressing possibly 7 billion in terms of network and security enablement markets. So again, two different companies. Still halted in the after hours for trading right now separating into one optical Components Company and one security enablement company. Yum brands, Parent Company of taco bell, pizza hut, is raising the Quarterly Dividend by 11 to 41 cents a share and jds uniphase and yum brands out with news on the respective front in the after hours. Wow. Big news there. Thank you. Since apples event, theres talk about the watch and apple pay working. My next guest says all that matters is the iphone. Go to cbs n. Com vote to tell us if youll buy the iphone 6, 6 plus or neither. The results in the bomb to the tom of the screen in the segment. Joining us is jay arrow and burt doman. Welcome to you both. Jay, you were pretty clear about this. You said all that matters is iphone 6 and hit it out of the park on this. Yeah. I think it looks great. Both of the models look really good. People want a bigger phone for a while and getting it. I think more importantly underreported, look at the line now, you have the 5c and 400 off contract. You have the 5c which is about 500 and then the 6 abe 6 plus so you have different sizes, different prices. Something people wanted from apple. Diversity. All pretty good. You have what you want there. Shares behaving nicely today, burt. Is it time to throw in the towel . No. First of all, nice to be with you again. But, you know, the apple group is about two years to wait. They have a severe case of phone envy. Similar to a little girl on a beach looking at a naked little boy saying, mommy, why cant i have one of those . With the boy . Carry on. Really, finally got the larger screen that i think other people had for two years. They finally got a much better camera and people have had for two years. They finally got cheaper memory. You know . Apple used to charge their customers for 10 worth of memory. 100. So now they also have this ip, of course, have been companies doing this for a last two years, as well. Like square, et cetera. Okay. So jay finally, you know, i saw the presentation yesterday, the word catch up came into mind. All the time. And it wasnt the tomato sauce ketchup. Finally apple catching up with the business. Understood. What do you make of the iwatch needing the iphone with it . Do you think thats a good strategy . Is that going to alienate some of the Android Users . Obviously. What do you make of it . I think apple doesnt care about Android Users. Iwatch is version 1. Generation 1. Well see what goes on. Doesnt matter. Maybe theres some psychology around the iwatch but the business, talking about what driving this company. It is the iphone and those two new iphones look great. To the point of theyre catching up, i cant get into the weird metaphors he went with but to the point of, oh, theyre catching up, thats what apple has always done. They have a reputation of an innovator but not first to things and they were late on the big screen and you know what . Theyre delivering it now. People want it. Maybe arguably late on both were 40 of the respondents saying they wont buy either one of the phones. Thats higher than i expected. By the way, catching up successfully, no one will attempt it. What a disaster. Going to a 99 cent price point. Terrible. Apple, people are willing to cut a lot of slack. They may not love the bells and whistles on an iphone 6 but they continue to buy the product. Not that many bells and whistles. It is a simple product. Bells and whistles, look at samsung, android. Nothing but bells an whistles that people ignore and dont use and looking at that market, you say, well, do i pay a premium for this or less and doesnt have the bells and whistles . Apple the products work. People are happy with them and strategic. Get me a better battery please. That big one supposedly with a bigger battery and questionable. So many people are putting an extra case that includes additional battery charge. Who needs that . I guess weak batteries are an issue. How about the roaming strain . Whether its an Office Building or out and about. Its a software thing they say. Its not like morris law and they have to work on software but the reason it does, we love them and use them all the time if you want the battery to last longer, dont use it. We love them. Poll has closed and it ended where we were looking. 41 wont buy either one of the new phones. 24 say the iphone 6. 35 , the 6 plus with the big screen. When you get past a high, ultimately, that is utility product, right . Do two or three things on the phone. The apple is too small. Mans hands. Too small. Is the keyboard bigger . Males can use it. Keyboard is bigger and apple opening up more than it has in the past and customized keyboards of other companies and they have adjusted to the critics and people in that bucket there. Shares ended the day higher. Burt, you have to come back and tell us more convincingly or the rest of the world why they dont deserve to be at this price point. It is simple. A closed system. What will finally down apple is the closed system. It breeds arrogance. Arrogance breeds customer, basically turning the customer off. Theyre going to lose their ecosystem. Competition is way ahead. I had a galaxy last two years. It is way ahead in technology to the iphone. All right. We have to go. We have to go. We have to go. Thank you, guys. Really appreciate it. Well, hes had a hot hand on many a night. Now nba star car me ro anthony hoping to score some points as a tech investor. Ill go one on one with him coming up. First, a different kind of allstar, this one from the world of economic policy. Alan greenspan joining us next with his thoughts about the state of the American Economy and just when and how Interest Rates will start to rise. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Starts at 6 30 a. M. On the vo rush hounose. Und here but for me, it starts with the opening bell. And the rush i get, lasts way more than an hour. announcer at scottrade, we share your passion for trading. Thats why weve built powerful technology to alert you to your next opportunity. Because at scottrade, our passion is to power yours. I make a lot of purchases foand i get ass. Lot in return with ink plus from chase. Like 50,000 bonus points when i spent 5,000 in the first 3 months after i opened my account. And i earn 5 times the rewards on internet, phone services and at Office Supply stores. With ink plus i can choose how to redeem my points. Travel, gift cards, even cash back. And my rewards points wont expire. So you can make owning a business even more rewarding. Ink from chase. So you can. Welcome back. Gold mman sachs with a note sayg not to worry about fred rate hikes and art cashin saying how they do it and how much and one man with concerns about the state of the economy is Alan Greenspan of greenspan and address all of the questions. Alan, good to have you here. Welcome. First of all, do you think were about to herald the era of higher u. S. Interest rates . Oh, eventually, yes. But i think its best to realize that whats happening now is a relatively slow process. In the sense that weve had a significant buildup in the size of the feds Balance Sheet through qe1, 2 and 3. And up until a couple of months ago, we had very little indication that any of that was moving out of the basic fundamental reserve system into the commercial markets. By that i mean, so long as reserves are sitting in the deposits of, for example, depository institutions, jp morgan,wells fargo, et cetera, at a Federal Reserve bank, those are not having any active effect on commercial lending or economic activity. They do, obviously, and have lowered Interest Rates as a process of accumulating them and havent triggered any form of spending through increased loan demand until very recently. And thats a good sign then, isnt it . Im sorry . So thats a good sign youre seeing throughout . Certainly an indication that the feds secondary impact on the economy after its impact on longterm Interest Rates is now beginning to take hold. How significant it is and whether this is just another false dawn remains to be seen. Im a little skeptical that its more than a shortterm phenomenon. But this is a very difficult type of thing to forecast. Because we have never seen anything like this before. Thats why people worry that the fed will turn out to be behind the curve here, by the time you know it, it will be too late. Aside from that concern, alan, theres also the concern with the number of reserves at banks here in this country and the size of the feds Balance Sheet and to raise Interest Rates, may run into trouble doing so. Well, the issue is more likely that in order to sustain if you begin to get movement out of the deposits which of the vary yos commercial banks held there because 25 basis points theyre getting on it with very little in the way of reserve requirements and no other charges, what you get essentially is a very safe investment at true minerimal ra and competitive. If you begin to get pressures for those funds moving out, if the fed at that point wants to maintain the level of reserves, its going to have to raise Interest Rates, pay that 25 basis points is going to have to go up and that, in fact, may be the first sign that the markets moving. Im not all convinced that its very easy to differentiate between the federal funds rate and the rate paid on those deposits. Market forces are going to be fundamental here as fed discretionary action. Are you worried this is all confusing not just to the banks involved but to the public . Well, its hard to say what is confusing to the public. It will certainly confuse economists so i dont know whether or not theyre two separate groups here to focus upon. Well, if i guess the question remains this. Next week, janet yellen will perhaps tweak the language of the statement. They might upgrade the outlook for the u. S. Economy even though we had a rather disappointing jobs report just now. The bonds market shrugged this off and u. S. Interest rates to some extent never lower than where they are today. You were there in 1994 when all of a sudden the bond market woke up and said, wait a minute. Things are okay out there and rates will be higher and Collateral Damage from that big move. Do you sense were on the moment of another big Movement Like that here . One has to assume that because remember we had a significant reaction a year or so ago when the fed just indicated that this was going to taper down less than previously expected. Now, remember, taper is still increasing the size of the Balance Sheet and the size of the reserves. At some point, those numbers are going to start to turn negative. Not just less positive. And how the markets react at that particular point we have had very little to no experience in judging it. Alan it is quite interesting to see what happens. Before you go, but the role of the u. S. Dollar, its strong here. We have barclays saying the euro going down to 1. 10 and currencies weakening. What impact will that have on Monetary Policy here . It is an effect of tightening. The fact both euro the now turned significantly we can and the yen has been driven down by abenomics clearly affects the Exchange Rate for the dollar against the major currencies. And that is almost as though we were taking definitive action ourselves. But the effect, of course, is to tighten as any rise in Exchange Rates would do. And thats an important factor for people to keep in mind next week with regard to how the fed may be weighing all of these inputs. Alan greenspan, thank you so much for your perspective on that. My pleasure. Really appreciate. Thank you. Well take a quick break and be back in two. Blachk blank when the world moves, futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with paper money to testdrive the market. All on thinkorswim from td ameritrade. With the top speedou compare of comcast the top speed of business dsl from the internet. Phone company well, theres really no comparison. Why pay more for less . Call today for a low price on speeds up to 150mbps. And find out more about our twoyear price guarantee. Comcast business. Built for business. Welcome back to some breaking news out of tmobile. Jon fortt with the details now. Jon . Yeah. Three things all about wifi. First, tmobile allowing wifi calling on all of the devices and encourage current subscribers to upgrade to devices to allow wifi calling for free. They might have to pay a little to get the devices. Number two, theyre doing a deal with gogo. The inflight wifi provider to text, send picture messages and check voicemail for free. Three, an inhome or insmall business device to connect to their network via wifi just a 25 deposit necessary for that. So this is supposed to improve call quality and loyalty to their network, kelly. Also, take a listen to what john ledger, cant forget this, had to say about the iwatch. Take a listen. We are extremely interested in the wearables. Everybody was extremely excited about the new watch and capabilities in 15 and we absolutely plan to participate. Extreme excitement. There you go, kelly. Thats exactly what i was going to ask. Jon, thank you. Quick response here, guys . Chris . Interesting. I just had to put out a report on verizon and theyre not going towards that voiceover ip wifi functionality. They want to keep the users on their network. But i think over time all of these providers are going to be forced to let users go over wifi. Essentially go around their network. Thats an interesting not happening quickly. But, you know, theyre going to lose control over the hand set. Its just going to be like a computer and kind of a big implications for Business Models and not charging you minutes. Sure. The question then becomes, jon fortt, answer in on this quickly get this in, jon. Should the phone companies let it happen or should they not at risk of people and customers migrating elsewhere . Well, kelly, its not disruptive. You have to be a subscriber to get this and so youre able to make calls using the tmobile phone number, tmobile text through Wifi Networks and if you get this inhome unit, thats a tmobile unit puts a deposit down on to get a better signal through that uses wifi to jump over to tmobiles network. Its like a cell tower that operates over wifi. Thats an interesting way to look at it. Jon fortt, big news there out of tmobile and las vegas. Thank you very much. Now dock anymore chu and a quick earnings alert. First of all, watching shares of restoration hardware. Moving lower in the afterhour trades after posting weaker than existing samestore sales and gave full year revenue forecast below wall street guidance. Still down by 4. 5 . Also, 5 below, a retailer, lower. Better than expected Second Quarter results but gave Earnings Guidance below wall street estimates. Shares down, as well. Also, a couple of news alerts for you. Check out sharyls of twitter. The company is tapping the debt markets for the First Time Ever. It plans to raise as much 1. 5 billion in financing for acquisitions and expansions. Its selling convertible bonds in two, two 650 million chunks, one maturing in five years and then seven years and that stock is debt now could be convertible to stock in the future. The shares down by a little over a percent and jds uniphase. We told you before. It just reopened for trading. It was splitting. You can see the reaction. Shareholders like it right now, kelly. Jdsu shares is up 14 in the afterhours trade. Back over to you. Thats a move. Dom, thank you. Just, guys, quick response. Twitter doing more fund raising in the form of debt. Why wouldnt you . Why not . Speaking of cash on the Balance Sheet and in this case needing it. This is a function of a new cfo, right . Getting their house in order and getting the Balance Sheet better. The bankers said do a deal. Why not . Execution of the little banks that we have raided recently. The markets are just voracious. And the stock up 4 today, kelly. Volatile week for it. See a pullback is not that meaningful. Why are they doing it . Why not . More reflection of the financing environment . People are, you know, the credit markets are open and available for anybody . Who knows for how long, right . Right, right. Who knows the cost of financing is relatively low. The rest of the year and the first half of next is really an open question as you were discussing with chairman greenspan. Right. But the one thing that worked since the crisis is Corporate Bond market. Autos, shortterm consumer paper, didnt need to be fixed. So crowded and hard for investors to find compelling opportunities. Maybe this is one. Spreads moved inside u. S. Spreads and think its wacky, just wait. Thank you for now. Dominated the Basketball Court and now working on did digital domain. Carmelo anthony joining me next on the six Tech Startups hes investing in. Location. Location. shouting location. Heres the location that matters the most. Here. Or here. Or here. Its wherever this is. To get customers to come here and stay here, youre going to need an app that connects to all your systems. So they can bank, shop, do what they need to do, and you gotta do it fast. Before the competition does. Its tough out here; you better be on the right cloud. Today theres a new way to work. And its made with ibm. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Take and. Exhale. In. Aflac and a gentle wavelike motion. Aahhh ahhhhhh. Liberate your spine, ahhhahhhhhh aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim in just four days. Ahh four days . Yep. Find out how fast aflac can pay you, at aflac. Com. Investing in Tech Startups, this past july, carmelo founded melo seven Tech Partners and joins me now to tell us more about it. Welcome. Thank you, thank you. Why now . Why while youre trying to cement your career as a basketball star are you involved in so many tech investments . I think just the way that the tech game is going. I mean, it is a tech boom right now and everybodys trying to figure out a way to get into the tech game and wanted to take time my time and make sure i have the right team around me and what companies to be involved with and as i call myself the new digital athlete right now. With that being said, i want to figure out ways for the tech world to enhance my play, how i can use that against my opponents and make me study and learn them better and also just trying to have fun with this right now, be smart at the same time. How much time are you devoting to it . How do you pick investments and can you give us a few examples . Launching in july, june, july, we were flooded with so Many Companies and had to sit down and devote like, you know, maybe a month, two months into this. You know, my during the morning i work out and then go to the office and me and my partners sit down and vet the deals out but its fun. Its fun. Im just Getting Started and still learning the game and the business. Im taking a lot of advice, you know, within the game. You know . Its going to take some time but im learning. So many people look at this around, you know, these streets and say, if Carmelo Anthony is getting involved, it is a bubble. Come on. Tell them, tell them that this isnt or maybe it is. You know that the timing is right to sort of sprinkle some money around its not a game. It is not a joke. This is not something im doing just to say im doing just to spend some money or waste some money. This is something im really, you know, intrigued by and involved this business. Really involved in the daytoday process of what it takes to vet the deals out and sit down and have the deep discussions. If this is a company to deal with or not. One of the investments is wearable tech, stuff in the wearable game and apple is notably moved into. They moved into the i think they were the guys that stepped out there and decided to say, okay, this is what were doing and change the game. I think a lot of other Tech Companies and wearable Tech Companies waiting for apple to do and now just open the gates for everybody else. What are the specific investments you are involved in right now . I think six or seven. Seek geek. Orange chef. Be everywhere. Make space. You know . We just signed on to get into lift. Just yesterday. Andello and hard to go through them right now. Lift yesterday. Is that because you use uber and lift and services and why now after they raised some money have a high valuation . Yeah. Everybody needs a ride. Everybody needs a ride. You cant nowhere in new york city without a ride. For me i saw what uber did. We come team up and just enjoy that ride. For me, it was something i felt, you know, comfortable. I felt like i can really help lift and in certain ways. If the knicks get to the playoffs, everyone will say, thats great. Give him more tech investments. If you dont, the backlash. Of course, of course, of course. Im made for that. Built for it. Ready for it. If i lose a game, they say he was focused too much on tech. If i win a game, theyre going to say tech will help it out. I think im in a damn if you do, damn if you dont situation. I know im doing it a smart way and taking my time and not rushing into it, ill be fine. Understood. Theres a lot about this, your career after basketball. You know youre high profile figure in the league and i want to ask you about Something Else in the league right now. The second team owner running into trouble and racially insensitive remarks. What do you make of this . Were you shocked, dismayed, horrified . I was shocked. I thought people learned the lesson after the Donald Sterling incident and then not shocked. This is our culture, this is our society. These are things thats talked about behind closed doors and sad to see its happening to one of the colleagues thats out there. At the end of the day i wish we get to the bottom of it and remove the rotten apples from the rest of the bunch. Professional sports is really shaky. Look at whethers happening with ray rice and the ravens. You have a 7yearold son. Yep. Do you feel like you can look around the industry and point to guys who are good role models . It is definitely a lot of role models out there. People make mistakes. Down the wrong path and do things instinctively. As my son, im his role model. He going to follow me and listen to what i say. Yes, he has people that he look up to, favorite players, favorite athletes. End of the day hes going to follow my lead. I have to be a good example. Does owning 1,000 pair of shoes count as a good example . Yes. Does it . Yes. A great example. He cant have 1,000 pair of shoes. He has to work for that. Exactly. Thank you so much for being here. Thank you. Keep us posted. Thank you. Carmelo anthony of the new york knicks. Well, he is the man at justice who extracted the billions of the banks after the crisis. Tony west is leaving government, but first, he sat down with our kate kelly and hearing some of what he had to say right after this. It, wait, wait, wait. Whoa, does she have special powers when she has the shroud . No. Guys . Its the woven one the woven one. Oh, oh that gives her invincibility. Guys . No, no, no. The scarlet king is lord victors son no dont. I told you you guys are gonna be so surprised when you watch the finale youre so lucky your car has wifi. Yeah. I am. Equinox from chevrolet. The first and only car company to bring builtin 4g lte wifi to cars, trucks and crossovers. But parallel parking isnt one you do a lof them. Ings great. Youre either too far from the curb. Or too close to other cars. Its just a matter of time until you rip some guys bumper off. So, here are your choices take the bus. Or get Liberty Mutual insurance. For drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. See Car Insurance in a whole new light. Call Liberty Mutual insurance. Welcome back. Tony west served as the third highest ranking Justice Department. He went after the big banks. He extracted more than 30 million in settlements. West is leaving the Justice Department but before that kate kelly had a chance to sit down. What did you learn . He was apologetic. He said he tried to be fair ain not penalizing jpmorgan during the crisis. But again he argued the banks will step up and buy Distressed Companies if need be in the future. He also had thoughts on ray rice who pled not guilty on assaulting his wife. This is after the video was revealed. Although the case against him would seem to be finished, rice, that is, west signaling new state charges cant necessaryil be ruled out. I always have to be careful with what i say since this is an ongoing case and prosecutors are making realtime decisions. He said he wouldnt elaborate because the worst thing that would happen to him is a high official front running something hed want to do. However, i spoke to some criminal Defense Attorneys to ask how would that even be possible and they said it is. Its not necessarily easy in one factor is janay now his wife who is the victim of the assault has not wanted to press charges but even so she could be compelled to testify. Its astounding. This department of justice is more politicized, more focused on pandering to certain groups. I thought the Bush Administration had done it, but, no. Obamas worse and the settlements are worse, where the victims are paying the bill and the administration gets the ring the bell and declare successes . It oohs breakdown in the rule of the law. I understand what youre making. Shareholders end up being on the hook for the large settlements. I hear you. But there was a lot of harm done in financial crisis. Its taking too long for the Justice Department to mete out some of the settlements but theres real relief. Theyre pandering. I dont know that theyre pandering. We cant on the one hand complain about the lack of individual prosecution and Justice Department actions and complain about what is being done. You bought their argument. This is breakdown of the rule of law because what happens is hang on one second, i think we stro get out to breaking rice on ray rice right now. So heres what we have. According to the Associated Press and sources that they have, Law Enforcement official says that he had sent a video of ray rice punching his then fiancee to an nfl executive three months ago while League Officers have insisted they did not see the violent images until this week. Remember, Roger Goodell of the nfl was just on cbs news saying that to his knowledge that nobody from the nfl had seen this prior taped footage. The person, the source at the Associated Press played a 12second voice mail from the nfl office on april 9th confirming the video had arrived. A female voice on the other end expressed thanks and said, quote, youre right. Its terrible. So, again, a Law Enforcement official said that he did send a video of ray rice punching his then fiancee to an nfl executive three months ago while League Officers have been insisting they have not seen the violent images until this week. Again, this is very much a developing story right now but according to the Associated Press, this could be some very, very at least quite a terrible turn here in terms of the story overall. Again, according to the Associated Press, kelly, a Law Enforcement official says they did send the video to the nfl three months ago and it was received by an nfl executive. More details as they become available. But for right now those are the details. Back over to you. Kate, if you could just recap what you just told us about tony west at the Justice Department and what he had to say about this. Tony west, the outgoing ranking number three official indicated to me we cannot rule out the additional or new charges against ray rice for aggravated assault. Thought would more likely be brought by the state officials in new jersey. Not the Justice Department bringing it but hes saying while he doesnt want to elaborate and he cant comment, hes indicating we could see more legal proceedings. And clearly this is just a Devastating Development for the nfl. Also, dom still with us, the question about Roger Goodell staying at the nfl becomes the pressing one. This reminds almost of Chris Christie and the bridge gait kind of scandal. When theres somebody in the organization who had awareness, how high up should we hold the person whos running that organizati organization . Of course, the reason why this conversation is as critical as it is right now, first of all, its on the heels of that cbs news interview that Roger Goodell gave last night and was played on the news last night and cbs this morning. Also remember this is critical because the entire conversation around this particular scandal has come to the head about the times when nfl officials knew what happened here. Thats the real key here. There have been so many questions swirling around about who knew what and when. And in this case here if the Associated Press story is true, that does provide a very, very damaging piece of evidence at least in this whole situation. I think based on the reporting ive done today, there have been good indications for months now that the prosecutors probably saw the tape. I mean any selfrespecting prosecutor would have got than revel casino elevator tape according to one person i talked to. That stands to reason there were indications that ray rice s lawyers had spoken. So proof potentially that the nfl was in the loop or could have been. Weve got to leave it there. Dom, im so sorry, we have to leave it there so we can wrap up this show and hand it off to fast money. 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