Transcripts For CNBC Closing Bell 20160912

Home builders a few areas in the market that are bouncing back today, this afternoon. How long does it last . They look very different from when you were doing World Wide Exchange this morning. Correct. Futures were down 150. Why are we showing you Richard Cordray because 185 million from wells fargo after employees reportedly created false accounts to receive compensation incentives. That man, the head of the bureau will join us on a first on cnbc interview. And we will have a very special guest here at the New York Stock Exchange. Mr. Meat. Meat loaf will be joining us to discuss his new album and the changing music business with headlines today on pandora. His first album came out still sells 200,000 albums a year. It is still selling out. He was on celebrity apprentice. Donald trump. Lets just look at that. He comes to wall street. Lets start with the latest fed speak although i hate to leave the meat loaf video. Steve joins us from headquarters. I think the market wants to know right now before we go any further. Fed governor make ag fullthroated case for the fed not to high grade. She says the fed has not been meeting inflation targets and there are risks from abroad and the fed should watch carefully. In the presence of uncertainty and the absence of accelerated inflationary pressures it would be unwise for policy to foreclose on the possibility of making further gains in the labor market. Her comments follow those by neel kashkari. Dennis lockhart sounded hawkish and said conditions warrant serious discussion of a rate hike. It all depends on fed chair janet yellen who said the case was strengthening for a rate hike. There has been lukewarm data since she made remarks. We will find out next wednesday if she changed her mind. It appears they are going into this meeting divided. There is no doesnt feel like there is an overarching theme. Wanted to get your opinion and comments from the republican president ial nominee donald trump. During an interview he talked about janet yellen and Interest Rates. Here is what he said. Staying at zero because she is political and she is doing what obama wants her to do. She is keeping them artificially low to get obama retired. Watch what will happen afterwards. I think it is very political. I think she is very political and to a certain extent i think she should be ashamed of herself. I come from a time and a period where one would not make such charges without evidence of it. The question i have for donald trump would be where would you put rates . What evidence is there that the fed is keeping it lower for political reasons. Would he want to raise rates in order to hurt the economy . What donald trump makes very little sense to me but i think it is rather untorrid to make charges without having actual backing. Having said that, do you think the fed is mindful of the election day and the timing of any move they may or may not make before or after that . I think it is mindful. I think they want it to hike in july. I think there was the issue of brexit. They may hike next week. Its a very close call, very divided federal reserve. I think that ultimately it comes down to a question of whether or not the economy can sustain it. I think at second order is whether or not the markets can sustain it. My work is showing pretty substantially that the fed has moved in hike rates both up and down and has very little evidence to show that the fed is active politically. See what happens next week. Thank you. Jp morgan chase Ceo Jamie Dimon speaking out about the federal reserve. Good afternoon. Yesterday jamie dimon said the u. S. Economy is doing okay adding there were no real pot holes. As for the u. S. Financial system he said it is in a position of quote enormous strength whmpt asked what advice about when to raise rates he said this. My own personal view and she does not call me for advice, but 25 basis points is a drop in the bucket. We say 25 base points, dont worry about it. Lets just raise rates. When asked for a preference between september and december this year he said the feds should, quote, go sooner rather than later. In a conversation that covered a wide range of topics he also had this to say about the threat of a cyber hack. Cyber security is an unbelievable big deal. And government is involved none too fast. We have to do it more and quicker. We have hundreds and thousands of attacks every day. Jp morgan is in great shape. He added quote someone is going to get hurt but clearly he thinks that wont be jp morgan. The overall headline for him is Banking Industry is in great shape right now. He did say part of the reason for that is down to doddfrank, certain parts of it he says he doesnt like but on the political discussion he said it wasnt worth repealing enough of it was worth keeping. In contrast the strength of the u. S. Banks to european banks where he said they are well behind and Capital Position still struggling and did have a message saying the banks should be left to get on with their day jobs because at the moment they are with Holding European growth. Shouldnt we say that its not really a surprise to hear dimen saying now is the time to raise rates . That would directly benefit his bottom line and the reason banks come to life over the last few weeks is on the greater expectation of higher rates. Absolutely right. He has been clear that he wanted rates to go up for quite some time. We havent had quite such a pointed direct comment just a week ahead, of course, of a fed meeting. Also, lets say coming just after a big sell off on friday. Despite the big sell off on friday he was clear he would like to see rates go up. Thanks for staying late. Well see you later. My pleasure. Early tomorrow morning. Very early. We move on to the its whilst. I would never i spend a lot of time with him. Here is our Closing Bell Exchange for this monday. Ned favors with us. Steven from Stewart Franklin and look its rick santelli. Is it simple to say friday was a selloff and today it is a rally . Is that what is going on here . It is kind of remarkable that i find myself agreeing with brander at this point because im normally quite hawkish. You have to ask if the fed had normalized Interest Rates when they had the golden opportunity 20132014, not now when growth is slowing would they be talking about easing rights or raising rates . Lets say the feds rate was 2. 5 they would be talking about cutting Interest Rates. How as a longterm investor do you read these comments and major moves we are seeing breaking out of the summer lull of volatility based on some fed comments around september, december. How do you tune it all out . I dont read the comments. We have been in a market regime for about the last seven years. U. S. Stocks and bonds beating everything else. Now we have the market environment where foreign stocks have been doing much better. You have brazil up 70 . Russia up a great deal. Most importantly for an individual investor you want a wholestic approach which is why we announced we were launching the digital adviser which manages money for individuals and institutions for zero percent management fee. It is two etf providers and now manages the holistic or roboadvisers. Interesting. Good commercial there. Rick, of course, you will be honest, but would you prefer fed officials do you like all of the jobowning that goes on publicly where we get a real spectrum of opinion about what Interest Rate policies should be or would you prefer that nobody talk among fed officials . I remember my parents saying sometimes its better to keep your mouth closed for obvious reasons. I think all of those reasons apply to the fed. I think it is just a travesty. First of all, to think that there shouldnt be more scrutiny on central bankers when they grabbed so much more power, scrutiny goes along with it. With that scrutiny has been a disappointment in their behavior. Communications issue is a disaster. The cringe factor has never been higher. One week hawkish, one week dovish. This is no way to run a central bank. If janet yellen was a leader and im not saying she isnt in a pickle because she is she should turn off all the mics at this point in time. I know steve was giving trump static. In the end he might end up in a conclusion that is hard to prove but there is a lot of facts in the notion that they havent won tightening in ten years. The economy certainly not in any type of emergency. Their logic is you cant follow it. The notion of data dependent is an argument that they have used. The propaganda of a central bank to move stocks up or down hundreds of points based on an outcome that is objective is crazy. Ill tell you what, i would rather have more donald trump types talking about it. I would rather have the public be more aware of it because maybe something will change. What backs rick up here is that we sold off 55 points on the s p 500 based on addition of the speech to the schedule. When that speaker stuck to her guns the index comes back 33 points. I mean, is there a better commercial for human floor brokers than this . Which is why i keep bringing it back to the long term. Can you just talk sector wise about what to make of it all . What is leading the rally . The phone companies, the Interest Rate sensitive sectors that sold off so sharply on friday. What do you do . Most people build a diversified portfolio, real estate commodities, a decent first step. The problem with any portfolio theory which is how the vast majority of people do it you are exposed to huge draw downs. Markets like in 08. You have to have in my opinion three things, tilts towards value and momentum and the biggest one is a trend overlay, vast majority of investors dont have that. I think that is the biggest strategic hedge through managed futures that most people can have that will help in these hedging the down markets. We have to go at this point. Thank you all for spending time with us and give us your thoughts. By the way, be sure to watch our special coverage of delivering alpha conference tomorrow. We will hear from leaders in business and policy including treasury secretary jack lew, and billionaire activist investor carl. It is always an interesting newsworthy day. Summer is over and we are seeing one percent days all over the place. And they are back in a big way today. Dow up 247 points just off the highs of the session after what looked like another big sell off today. Coming up, the head of the Consumer Financial Protection Bureau speaking with us first on cnbc about the wells fargo case. We will discuss which other banks that agency might be investigating. Up next Hillary Clinton falling ill at the 9 11 memorial event in new york city yesterday. Today revelations that she was diagnosed with pneumonia on friday are raising questions about whether she is playing it straight with the american public. We will have that including more on todays market rally. You are watching cnbc. 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California grown with no antibiotics ever. Lets get comfortable with our food again. A surprise after the big sell off on friday and the futures this morning were down sharply. Then things turned around. Fed governor making a speech today that suggested that maybe we wont get the Interest Rate increase. Dow was up 250 a short time ago. S p 500 up 29 points. Tesla is gaining ground. Ceo elon musk discussed improvements to the auto pilot system which he says would likely have prevented a fatal crash that occurred in may. The improvements radar probably cuts the accident rates more than in half. Thats my guess. By far the safest car on the road. Teslas auto pilot improvements will be available through over the air software update. Tesla shares are down about 16 this year. Somebody made the comment that it is probably misnamed this auto pilot system should be more like driver assist. It makes it sound like it is a driverless system. They need to keep hands on the Steering Wheel at all times just in case. He said that the auto pilot still improved safety and over 200 million miles have been driven. He also sounded frustrated on the call. He had a tough week because the space x rocket exploded. He is facing a lot of investor questions. He has a lot on his plate right now. And cash flow problems to boot. A lot on your plate, events over the weekend have put Hillary Clintons health and transparency front and center in the president ial race. Our john harwood has more. How did the campaign react today to the criticism . There is a lot on their plate, too, just like elon musk. It was all about damage control. Because of the video of Hillary Clinton walking out to her car, collapsing for what we since learned was reasons of pneumonia which she had been diagnosed with on friday her spokes men were saying she is going to release more medical information to calm questions later in the week. Beyond that and in the next few days we have been in touch with her physician this morning to get the materials together. We will be releasing that to further put to rest any lingering concerns about what you saw yesterday. Donald trump was examined last week and releasing medical information this week. But for Hillary Clinton this gogoes to something beyond the issue of medical transparency but the pension for keeping information close to the vest, not being transparent. Hillary clinton, by virtue of the fact that they decided not to tell the public on friday that she had munonia and then to wait several hours before disclosing the pneumonia even yesterday she created problems for herself. When you guard information too closely sometimes you raise more questions than you want. Which brings to the point a lot of discussion lately. Donald trump wont release his tax returns. She wont release her medical records for the most part. I know it is tough, you cant legislate this kind of thing. Dont you think candidates should have to release that information . Absolutely. That is why it has been a tradition. Hillary clinton has released a lot more relevant information than donald trump has. She released a legit doctors letter from 2015. Donald trump released this ridiculous letter now he is saying he will introduce real information. She put out a lot of tax return information and he put out none. The fact that she has done more in terms of public release than he has doesnt mean she has handled it properly or been fully transparent. Real issues. Thank you. Thank you. John harwood in washington. Less than 40 minutes to go before the closing bell. We are looking for a nice rally after fed governor suggested that the fed should be cautious when it comes to raising Interest Rates. Dow is up 240 points. S p 500 up about 1. 5 . Coming up we talk with the chairman of Health Insurer about how his company is trying to raise profits. Up next, meatloaf is in the house. Are people excited . The rock star will be joining us to discuss the huge transformation of the Music Industry since he released his first album bat out of hell in 1977. Were drowning in inform. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. With dand bold styling to to stay ahead of the curve. The lexus rx, rx hybrid and rx f sport. This is the rx, elevated. This is the pursuit of perfection. Nearly 250 point rally for the dow. Quite the reversal. 29 out of 30 stocks in the dow are positive. The move is being led here by some consumer names like walmart, p g, apple and cocacola. First drives for the dow in four sessions. Other movers. Perrigo among the best. The wall street journal says the Investment Firm issued a letter to perrigo saying perrigo failed to achieve targets set after a takeover bid last year. Pandora and amazon are rising both reportedly planning to launch new versions of Music Streaming Services over the coming weeks. New york times reported they could charge as little as 5 a month to under cut spotify and apple music. The question is how will meatloaf make money off of that . Our next guest is actor both on the stage and on screen, the list goes on. Meatloaf has a new album braver than we are. Its coming out this friday. Mr. Loaf or do we call you meat . The first person to call me mr. Loaf was clyde barns of the new york times. It was when i did central park. He is the only one who could get away with that. You are one of those iconic rock stars that conjures so many memories for a certain generation. People on twitter itemize the first concert they went to and first time they encountered you. You have a very devoted following, dont you . Yes. We do. We do. And everything i do is really about them. When im on tour i dont talk on days off. Its all about that next show and those people who paid their hard earned money for that ticket for me to be able to do the best show that i can possibly do for them because thats the only thing that matters. And you are still at it. You have a new album coming out. We do. We purposefully made it very different than bat out of hell or bat 2. It is like nothing else out there. In fact, i wanted to make it all one piece without breaking it up into tracks, like a symphony. But itunes you had to break it up into tracks. And the first song on the album jimmy wrote when he was 19 years old. And so after we did that i decided because i sing everything in character, that every character on the record would be 19. How can you possibly do that . I go its called back story. You create a character. When he gets to be 19 you stop him. Very cool. You mentioned itunes. You have seen so many changes in music business. I have no idea what is going on. Can you make any money off on album like you used to . Bat out of hell still sells 200,000 units every year. I have yet to see hardly any money off of bat out of hell. Can you make money off of pandora or spotify . I dont believe you can. If you do its very little. You make more money really, you get bigger checks from radio air play. And they pay you more. Let me go back to something you said. You havent made money from bat out of hell . They declare me breach of contract. We were going to ask you your biggest money mistake. Is it bat out of hell . . I never had anything to do with it. I wanted off the label. And they said okay but we have to get an override to your next label. I said fine. They backed out of the deal. I had to turn chapter 7 to when i did that it wasnt because i couldnt pay mastercard. It was to get out of a deal. And they declared me in breach of contract. We did want to ask you because you have a relationship with donald trump. Im going a quote dolly pardon here. America has a great system in place. And the American People will make the right choice. Were curious because you know him well, whether you are supporting him. I know you came out and supported mitt romney. Im not going to talk politics with you at all, dear. Thats off limits. We will let you go at this point. Im glad went up 250 points today. Youll take that. Im making money. Arent we all. You in this market. On a number of topics. It is time for a cnbc news update with sue herrera. Josh earnest says president obama will veto a bill passed by congress that would allow families of victims of september 11 attacks to sue the saudi arabiaen government for damages. Its not hard to imagine other countries using this law as an excuse to haul u. S. Diplomats or u. S. Service members or u. S. Companies into courts all around the world. Teslas model x suv went on sale in japan being marketed as the First Electric suv. Price tag is about 88,000. Baylor University Researchers studied the medical records of more than 200,000 patients with diabetes and found 38 were not taking cholesteral lowering stattens which lower the risk of heart attack and stroke. And a scientist who has discovered a parasiddic worm named it in honor of president obama and that is supposed to be a compliment. It is a deadly turtle pathogen. Its a species of a parasitic flat worm and invades the lungs of fresh water turtles in malaysia. The compliment, the scientist has a deep respect for the resilient little creatures. And we should remember its a scientist. So from a scientist that is a compliment, i guess. Im sure the president would take it as such. I wish it wasnt such a descriptive compliment. A little t. M. I. There. His album is called braver than we are. Needed to mention that at the end there. President is brave to accept that respect there. We will take a break. We have 25 minutes left in the trading session here. Rally day. The dow up 238 points. A leading trader will tell us what he is watching going into the close on the first session of this new week. The head of the Consumer Financial Protection Bureau gives us his take on wells fargo scandal involving more than 2 million fake bank accounts. 5,300 employees fired and 185 million in civil penalties. His offices biggest win coming up. Ok team, what if 30,000 people download the new app . Were good. Okay. What if a Million People download the new app . Were good. Five million . Good. We scale on demand. Hybrid infrastructure, boom. Ok. What if 30 Million People download the app . Were not good. Were total heroes. Scale on demand with the Number One Company in cloud infrastructure. Hewlett packard enterprise. 22 minutes left in the trading session with the dow up 245 points. Joining me on the floor we go to gordon charlp. Is this rally for real . Pleasure to be on your show right after the great meat loaf. Fabulous performer. Friday a skiddish market. We have seen that on a couple of occasions. If you look back at Brexit Europe didnt react the way we reacted. We have a lot of that today. Maybe not all the way back but a good portion of it back. Why . Im hawkish and then you have dovish comment and it changes. I think there is a back story and that is what happened in north korea. Because i think we have had this area where we have been stuck in this range. September is going to start to pick up. One of the things that when you see Something Like north korea i think the street starts to price in the real possibility that donald trump could become president. And i think that there are many that are skiddish that he is not prepared on a Foreign Policy level to handle what may be coming. So you are saying the markets are susceptible to macro headlines. That is the order right through september through the debates. And the fed meeting. That is coming up next week. Thank you very much. Sara . 20 minutes to go before the closing bell. We are still in rally mode with the dow up 243 points. S p 500 up now 1. 5 . The nasdaq in the lead at 1. 6 . Sen tine is one turning a profit on obama care. We will talk about what his company is doing right and the future of obama care next on closing bell. Mple for actual rocket scientists. And the launch crew met for a moment of reflection. Before any of this, cdw orchestrated a collaboration solution using pcs with intel 6th gen core vpro processors. Collaboration by intel. Orchestration by cdw. Mapping the oceans. Where we explore. Protecting biodiversity. Everywhere we work. Defeating malaria. Improving energy efficiency. Developing more clean burning natural gas. My job . My job at exxonmobil . Turning algae into biofuels. Reducing Energy Poverty in the developing world. Making cars go further with less. Fueling the global economy. And you thought we just made the gas. Energy lives here. Announcer theyll test you. Try to break your will. But however loud the loudness gets. However many cheese puffs may fly. Youre the driver. The one in control. Stand firm. Just wait. [click] and move only when you hear the click that says theyre buckled in for the drive. Never give up till they buckle up. Back to the highs for the session. The dow industrials up 267 points with about 17 minutes left. S p 500 up strong. Nasdaq the best performer of those three. Check out the transports very strong. The dow transportation average gaining 1. 5 . Jet blue, csx, Norfolk Southern among best performers. Bio tech is strong. The Health Care Sector just turning positive for the year after going negative on friday. The sector is still struggling with the likes of obama care. Meg terrell has more. After friday turning negative for the year we are back up today. It is still worst performing sector year to date. One of the biggest drivers is bio tech. You can see here we are in the green today however not doing so well for the year. If you look at the ivb. Fears about the election, all of the drug pricing headlines. This is something keeping people out of the space. That is a main concern. Something driving it higher is a deal with raptor being acquired by horizon. There is always catalysts in the space, Clinical Trial data and for people willing to stick around or get back in at least in the drug space there are three to highlight for the rest of the year. The first one is kite pharmaceuticals. People expecting data this month in the hot program of therapy. Sarepta therapeutics and finally eli lilly has a phase three trial running in alzheimers disease. One Health Care Services entity under blue skyoffs late is centine. Company is expanding under obama care while others have been pulling out of public exchanges. Joining us is chairman, president and ceo of centine. What has been the impact of massive players like United Health and others pulling out of the obama care exchanges . I think it has an impact on the overall industry and just highlights the need that after the election we need to fix it. There is a group of us that are doing just that. Im curious what you see as a fix because it leaves a company like yours vulnerable to insuring the high cost people out there who are not you are not going to make money off of those guys. There will be more of those. We are operating below the minimum loss ratio. Our costs can go up and wont change our bottom line. We are focussed on the medicaid what we call the people that move back and forth, the medicaid to aca. And thats different network. Its 92 subsidized. Its a good place, it was a planned strategy. Ties them with what our business is all about. I dont think we will be attracted to those in the higher network. No question you benefitted from the expansion of medicaid under obama care. Has that peaked . I think there is once the politics get out of the way after the election i think we will see continued expansion of it. Under Trump Administration he has already said he would repeal obama care and leave it to market forces. I think he can have his ideas. If he wants to do block grants that is fine. There is the congress to get involved. Its not just all or nothing. When i looked at other industries where they have had block grants it usually turns out pretty well. Let me go back to what you said of how you would fix it. How we fix the levels of subsiodizization. Right now there can only be three levels. The highest cant be more than three times the bottom level. I look at the incentives to join, welfare coverages. Which sounds like more money for the government to spend to get this thing off the ground. I dont think so. More incentives . Our success is we save the government a lot of money. If you look at our trends we have been taking 1 rate increases. You do it by managing utilization. Highest quality care turns out to be lowest cost. Hopefully we can talk to you further. As we start to get more from the campaign trail on this issue. Thanks for joining us today. Nice to meet you. We will take a break here with 12 minutes left, the dow up 204 points. Oil seeing largest weekly inventory drawl and that is catching Energy Watchers attention. We will have more on the sharp moves in energy which reverse course next on closing bell. Miles per hour. 0 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. Nasdaq outperforming major averages. As they are preparing for the close they have the music going. Stocks are singing here on the nasdaq. Apple having a very strong day, the best day with the best gains since july 27. One of the things that we have seen over the last few sessions that people took some profits on their winners and tech has certainly been among the best performers in the quarter particularly apple up 10 . That is the best quarter since the Second Quarter of 2015. Bio tech also very strong today. And although bio tech is down year to date it is among the best performing sectors for the quarter, as well. And chips have really been the outperformer. We have seen people come back into tech strongly since the brexit vote on pace for the best performance since last year. Back to you. Thank you very much. Joining us here on the floor of the New York Stock Exchange we have helena. How are you . Good thank you. We have been marveling at the volatility in stocks and oil. Oil is trade wg stocks. We didnt have a fundamental catalyst for oils move. It has been trading with the dollar. We are going to watch where tomorrow is to see where those numbers come in. Last week we had a massive storage drop. In the market the anticipation we will have a big bill tomorrow. If we dont get that bill that would be important to watch. Last week are we chalking it up to the storm. Basically written off as storm related. We have a situation where we dont get the barrels back in big numbers we are looking at the east coast refineries. Those were not hit by the storm but there was a significant draw on the east coast. We hear stories now that maybe the u. S. Producers are stabilizing influence on prices, oil around the world. One of the head wins for oil has been the rising rig count. It is up 84 since july and so people keep thinking it will come back. That is going to cap the upside. The u. S. Is a very important swing factor to watch. The other swing factor is the dollar. Sharp rise on friday. Hit the price of oil. What is your prediction from here . It is one of those other head winds we are watching for oil. I think the dollar, stock market, any negative news on china and on the fundamentals story you have to watch u. S. Production. We think on the Positive Side we have producers under stress and we have the meeting coming up and that is worth watching. Good to see you. Loves being on closing bell. Up next we are coming back with my favorite part of closing bell, the closing count down. Also, Richard Cordray will join us from u. S. Consumer Protection Bureau. A lot of eyebrows raised because of fake accounts created at wells fargo. We have a lot of questions for mr. Cordray to answer coming up on the second hour of closing bell. Upgrade your phone system and learn how you could save at vonage. Com business 2 1 2 minutes left in the trading session. Bob pasani joining me. When you look at fridays market to todays market we have a twoday chart of the dow. The huge decline which i guess we attribute to eric rosenbren. The market was already you see that stutter step i did there. It has come back now. Look at the twoday chart of the tenyear yield as the market tries to figure out exactly what the fed is going to do next week. So try being a professional trader. Look at the volatility in that. Try trading this kind of stuff. People throw up their hands and say i dont know how to do it anymore. Wti, oil. Thank you for letting me do this here. Two days of oil. Volatility that happens there as we now wait for the meetings and as is mentioned we have the supply date coming out. We saw oil stocks move up. The whole market simply reversed. How do you make money on this . Imagine coming in. There was complacency and then panic throughout the rest of the late afternoon. Suddenly today all positions had to reverse themselves. All the buying of the volatility, all the short position all had to reverse itself today. Just for saras sake the peso is getting hit hard these days. There is a feeling in the pits there that as Donald Trumps ratings go up the peso goes down. Im just telling you. What we really should do is the fed should turn off the microphones and stop confusing us. Thank you, bob. Jamie dimon listen to jamie dimon. The dow up 248 points gaining back some of what we lost on friday and a lot more coming your way here. Stay tuned. Welcome to closing bell im sara eisen. What a rebound for stocks. Here is how we are finishing up the day on wall street recovering more than half of fridays big sell off. The Dow Jones Industrial average closing out with a gain of 238 points. S p 500 rising 31 and check out the nasdaq, the best of all three up 1. 73 . Apple a big part of that strong story. And the Consumer Financial Protection Bureau clock ag win against wells fargo. The agency slapping the bank with a 100 million fine for opening unauthorized accounts. The director of that agency will pea joining us later to discuss. It is a first on cnbc interview. Lets talk about the market rebound. Joining us mike santoli. Fast money trader steve brasso will be ree joining us in just a moment. We await your note at the end of the trading day. Today you opened with the drop or todays pop . I think 91 is a pure head fade. We are trading with bond yields. Not just we got soothing words and the fed is not necessarily rushing towards a september move but the actual ten year yield calmed down and globally yields calm down. What we were reacting to on friday was the fear of disorderly sell off in bond markets. It didnt snow ball. So at least for now i think we will trade that way. We had a huge rush today. People thinking it was a buying opportunity. That could last a day if yields start going up. We are down 1 since thursdays close. Given what the prior 50 days were like it is still kind of a gut check. The market only listens to the last voice it heard. And believes that one when im talking about fed officials. I was mystified by the Market Reaction commented on friday. He realized he didnt say anything that was different from what he had been saying before. He has been warning that markets expectations may have been pushed too far back and worried about commercial real estates. There was nothing new. It said how antsy investors are over this decision. And to the comment earlier about turning off the microphones, a year ago investors were so worried because they hadnt heard from janet yellen for a Record Number of days. Damned if you do and damned if you dont. Part of the Job Description for fed chair. This fed has prided itself on open communication, on telegraphing moves and the problem is that this is a divided fed and it is hard to tell where janet yellen who should be in control of the feds message is coming down with one week to go before an important fed meeting. She is trying to do this very delicate dance. She is no longer the dove advocating for so long before she took office. Now she is the chairman. If she has to reflect consensus on the committee she has to reflect the middle of the committee. It is difficult to calibrate words. I think there is an important point to be made between difference between moving in september and fears of september rate hike and the possibility of moving at all this year. The fed has been trying to say dont think that we are not going to move at all until 2017 and not freak out investors by the possibility of imminent rate hike. And the books closed on todays trading we were talking about which was the head fake, friday or monday . Its so textbook when you look at it. They talk dovish. They talk hawkish the market sells off. For me she was feeling it out when you talk about being transparent she sent out release the hawks to see what it was going to be like for the last two weeks. You saw the market maybe move side ways lower. Friday was a big move. I think for them it is going to be a win flat on year 2024. We are way above water at this point. 5 up on the year. Thats a win. I think that is the prism they look through. They want the overall market to look good to the individual investor. One of the points was that the world matters for the federal reserve. Thats been her point. She used to be in the Treasury Department in charge of international matters. The question going into next meeting is how much it matters. It doesnt seem like there has been pickup in growth from europe and japan is coming up next week. The world in terms of growth to me is less important to the next couple of meetings and decisions than financial conditions. We saw the japanese Government Bond market sell off first and rotated into europe and then got here. That financial transmission is what she was addressing in part not so much to watch the rest of the world accelerate or is it just that financial conditions are they allowing for it . I think the dollar is not surging. I dont think they have any fires to put out tomorrow. I think that is far as we can look ahead. We heard less stimulus talk out of europe last year. I think that sort of paved the way a little bit more room for them to move if they want to. You cant have a low Interest Rate environment and then have the market crashing, as well. Nobody can retire because they cant get an Interest Rate and capital is less. At this point they threaded the needle effectively. Lets add another voice to this mixture here. Big headlines on the fate of the financial sector. Some of the high loigs of that conversation. Since then the global bank has been stuck squarely in the cross hairs of negative Interest Rates, brexit and the own strategic overhaul and we discussed it in a wide ranging conversation where brexit is a reality said he has begun realigning the business because of it. Consumer confidence should soon recover and praised the bank of englands Swift Response and the fact that they wont stoop to the level of negative territory on Interest Rates in order to preserve the banking business. He called those negative rates across europe unhelpful and wondered where this Central Bank Experiment would get us. As for the fed he thinks the fed would have to tighten soon but he disagreed with a notion that was voiced by donald trump this morning that the stock market will sink when that happens. The stock market should respond to underlying economic activity. If there is a correlation between where Interest Rates go, economic growth, labor market. That should translate into pretty Good Environment for corporation. So im not quite sure i would make that connection that rising Interest Rates will hurt equity markets. I think it could be the opposite. The banking Business Model depends so preciously on Interest Rates which is why you see the chorus of banking ceos weighing in in addition to the fed speakers. This morning the old boss at jp Morgan Jamie Dimon weighing in with a little more strongly worded reaction saying go ahead and do it. 25 basis points is nothing. You would be glad you did it sooner rather than later. Lets talk about this. This is the point steve made. We had a hawkish comment on friday. Look what happened on friday when there was a hint it would happen. Even the charge that trump and others would make that the fed is being political, the underlying assumption is that somehow markets are going to fall apart if they go. I dont think they fall apart in a lasting way. I think what the markets hate is when the markets think the fed is operating on something other than economic conditions. If they have some kind of agenda that they are trying to force decisions into, that bothers the markets, not necessarily i think just a height. It should be on Economic Data in terms of the Market Reaction and Economic Data has sort of painted a mixed picture. Yes, recovery but not as strong as it was this time last year. Is it Strong Enough to handle another 25 basis point rate hike . That is part of the cloudy outlook that the fed is dealing with. It doesnt provide the momentum they would like to see going into a september meeting, going into december meeting when they see the economy picking up steam versus letting the steam dissipate. That with ilboo ea tough call for the fed. The other thing i would like to mention about the Donald Trumps comments about the fed acting politically, janet yellen is not keeping Interest Rates low in order to help obamas legacy. The fed is the fed debating when is the right time not saying how much more can i help the guy going out . Read up on that one there. Jamie dimon said the Banking Industry is in great shape. The fed is watching a much Bigger Picture than that, right . Interestingly the fed is one of the Banking Systems regulators so there is a bit of a dellerate relationship there. One of the Companies Giving advice. Yes, the Banking System is in good shape. Consumer credit is healthy. There are a lot of signs of health in the Banking System. That shouldnt be the only reason to raise rates. One issue that the banks are dealing with not necessarily here in the u. S. Because we are not there but in Europe Companies starting to issue debt at negative yields puts them in a precarious position trying to Market Securities to investors and trying to aspouse them as Good Investments where they are getting less money back than the companies they are able to borrow. How does that end up . What is the liability and are these Central Banks asking too much of the banks with their own policy . It certainly is an uncomfortable position. What do you do . They havent performed in this rally. They outperformed in the sell off. The only environment is inl rising rate environment. We have neither of those. I assume the financials continue to outperform. People look for stock picking market here i think people should make sales in this market because it is top. Thank you as always. Your comments and part of the interview and grasso is ready set go on his way uptown to the Nasdaq Market site. You can catch him on fast money. Roger mcnamee. Will he bring his band with him. He weighs in on samsungs exploding battery woes and whether bad headlines can mean good news for apple. The Consumer Financial Protection Bureau slapping wells fargo with a 100 million fine after employees opened up millions of unauthorized accounts. Cfpb director Richard Cordray discusses whether other banks are doing the same thing and why the executive in charge was able to walk away with a massive pay day. Investors beware. We will hear from somebody who will name what he calls the three most dangerous stocks in the market right now. You dont want to miss those names coming up. You are watching cnbc, first in Business World wide. Hey gary, whatd you got here . This bad boy is a mobile trading desk so that i can take my Trading Platform wherever i go. You know that thinkorswim seamlessly syncs across all your devices, right . Oh, so my custom studies will go with me . Anywhere you want to go the markets hot sync your platform on any device with thinkorswim. Only at Td Ameritrade [phone buzzing] some things are simply impossible to ignore. The strikingly designed lexus nx turbo and hybrid. The suv that dares to go beyond utility. This is the pursuit of perfection. This is the new comfort food. And it starts with foster farms simply raised chicken. California grown with no antibiotics ever. Lets get comfortable with our food again. We have a news alert an anadarko petroleum. I want to point you to shares on the move. The Company Offering 32. 5 million shares roughly in a secondary offering. The Capital Raise will be used to Fund Purchase of deep water gulf of mexico assets for about 2 billion. The transaction is expected or effective august 1 expected to close prior to year end. Anadarko says it is a catalyst for the companys oil and growth objectives. We are looking at shares of anadarko down. Thank you very much. We tend to spend a lot of time talking about the stocks you should think about investing in. Today we are looking at what our guest calls dangerous stocks. You might want to stay away from. Joining us now is david trainer. Welcome. Thank you. Lets go through your list here. Zoes kitchen you say no meat on the bone for the concept which has an ugly looking chart sgmpt all i think the fast casual dining is a crowded space. They are losing a lot of money. We show over 100 million in negative cash flow. What gets us is the stock price. To justify the current price they have to grow profits at about 10 for nearly 35 years. So thats a lot of growth to be baked into a stock price. Are you short that stock . I am not. Kansas city southern you call the most expensive of the rails you follow. If the economy picks up shouldnt it be . You have to think about how much is priced in. The stock price implies that profits will triple. 7 growth for about 20 years. Where is the upside. I think investors are so desperate to find attractive stocks that they are plowing money into a lot of stocks that they shouldnt be. When you look under the covers the profitserant as good as the accounting. Go for either zoes kitchen or kansas city. They both have i guess i ask you the question. You looking at certain measures of Earnings Quality but they are not necessarily secrets to the rest of the market. In other words, is the Market Building in Something Else here . In either cases you can see them down the road being acquisition candidates. We have a section in all of our reports on dangerous stocks called stupid money risks. We see companies, microsoft and linked in. Nobody understood them. Sometimes big Company Needs to buy a Small Company to be interesting. That can happen. If you are betting on somebody to buy out your stock in order for you to make money is that the risk you want to carry . Do you want to own things for solid fundamental reasons . Last one before we let you go, not exactly a household name but a Company Called black mod. They provide software to nonprofit industry. This Company Really raise as lot of red flags. When companies try to get you to focus on nongap earnings we see that as a red flag. We saw that with companies that have since blown up. The bottom line is they are losing a lot of money despite showing investors that they are making a lot of money. The valuation is scary. 10 Profit Growth for 40 years. Not many have done that or will ever do that. Do you want to carry that kind of risk . Stocks up 72 in the last three years. Nongap hasnt been a problem so far. Until it is. It wasnt a problem until it was. Good to see you. Thanks. Thank you. David trainer. When we come back wells fargo under fire. A first on cnbc interview with a man who just issued the 100 million fine. Consumer Financial Protection Bureau Richard Cordray. Will Hillary Clintons Health Concerns and deplorables comment have a big impact . The latest polling data is coming up later on closing bell. Stay with us. [ crash ] and reunited three decades later for a tour that sold out in three minutes. And your cisco hybrid cloud handled millions of ticket orders without breaking a sweat. Before all of this, [ crash ] the experts at cdw orchestrated a cisco hybrid cloud solution. Scalability by cisco. Orchestration by cdw. Were drowning in information. Where, in all of this, is the stuff that matters . The stakes are so high, your finances, your future. How do you solve this . You dont. You partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. Morgan stanley. Its not just a car. Its your daily retreat. Go ahead, spoil yourself. The es and es hybrid. This is the pursuit of perfection. Across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, Creative Business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. Let us help grow your companys tomorrow today at business. Ny. Gov wells fargo still falling after getting hit with the multimillion dollar fine. The Consumer Financial Protection Bureau fining the bank 100 million. The largest penalty after discovering the bank creating unauthorized accounts. Wells fargo was fined 185 million over this and today Credit Rating agency moodys called it embarrassing and say the penalties may have negative credit implications for the bank down the road. Joining us right now first on cnbc is director of Consumer Financial Protection Bureau Richard Cordray. Good to see you. 5,300 employees are fired about this. They couldnt have been rogues. Are you convinced that there wasnt an Incentive Program that specifically told them to create these fake accounts at wells fargo . I think there was an Incentive Program that told them to cross sell more accounts. If you have an Incentive Program and dont monitor it you can count that some employees will serve themselves, open the account and then try to fix things after the fact. You is to monitor these things very carefully or they can go off the rails. Ten employees i can believe, but 5,300 employees doing the same thing, can that be a coincidence . It is a systematic break down. Employees were sharing information with one another and doing things together. 5,300 or more of them as you say have been fired. That was a huge problem. It should not occur at any bank and it should not have occurred at wells fargo. Are you going after any executives that were in charge . Fortune today uncovering the fact that led the group and quietly left in july with a big fat more than 100 million payout. I think there is a lot of people who lost jobs including executives. If there are authorities who want to look at possible criminal penalties that is not something Consumer Bureau can do itself but something we would be glad to share results of our investigation on. These practices allegedly date back to 2011, the year you took the helm. Your agency has superadvisory authority over this bank. Why didnt you guys catch this problem earlier . We did catch the problem. People can quarrel over when it should have been caught. If we werent involved i dont know that the problem would be caught yet. Cfpb is charged with making markets work for consumers. That is what we are doing here. This is the largest penalty we have ever leveed against a bank. This was a violation of trust and abuse of trust. It should not have happened. I guarantee you will will be seeing it does not happen again. Do you have sense of whether or not this practice is widespread beyond wells fargo . You point to the culture inside the bank as creating incentives. Do you think that exists elsewhere . What i can say i cant comment on supervisory enforcement activity. This should not have happened at wells fargo or any bank. We put the industry on notice. We will be looking for these types of problems and they should not be occurring. A bank is supposed to be a place where you can put your money and trust it is being kept safely and that you know what is going on. That did not happen here. Is it possible it could be happening at other banks . We have no indication that it is happening on any kind of systematic basis at other banks. Everybody who has an Incentive Program needs to be carefully monitoring that program. If you dont do so you are creating risk for yourself and risks with your regulator which would be us in this case. You are creating legal risks and reputational risks with your customers. Nobody should be doing this. This is a loud and serious warning to anybody who might be thinking about doing this and it is something we will all be looking at, i can assure you. I have a question about your own agency. This is a big win, you mentioned the largest fine you leveed. It is a young agency created under doddfrank. What happens if there is a republicancontrolled white house and congress with donald trump saying he wants to dismantle doddfrank . I dont consider these things wins cht this is the job we are supposed to do. It is a job that needs to be done in our gumtd. I think the Consumer Financial Protection Bureau might have mitigated some problems that arose then. The notion that people want to do away with the Consumer Bureau this is a reminder of why we these the Consumer Financial Protection Bureau. 100 million is your biggest fine. There are those who say that is chicken feed for wells fargo for what they did. Once again the bank is not forced to admit that they did something wrong. Mary joe white said she didnt want to do that anymore. She wants entities to admit their guilt when they are fined for something. Why dont you follow that suit . Why does wells fargo or any executives are able to just walk away after this for some a minuscule fine and not have to admit guilt of any kind . I laugh when people talk about that because nobody is walking away here. This is the largest penalty leveed. There were 5,300 or more employees fired for misconduct here. So if anybody wants to say we havent acknowledged anything that is an acknowledgment that there is a systematic problem at the bank. We articulated in our order for all to see. Just to place that fine in context, have you quantified the loss for all customers affected . What was the financial damage to wells fargo customers . That is still being totalled but somewhere between 2 million and 3 million that we know of. Accounts were opened to gain the system and then money was put back. There were fees that were incurred. There were fees incurred from money being taken out of accounts. The biggest problem here to me is the breach of trust that money would be moved without your permission and accounts opened without your knowledge, that emails might be faked and pin numbers faked in order to open accounts in your name. All of those problems are the kinds of things we are remedying with the action and the penalty is what is making it stick. You understand some peoples frustration that after all is said and down and the financial crisis and another scandal involving one of the largest banks in the country that was thought of very highly in this industry and still not a single executive of any pank has been charged with anything nor have they gone to jail if they were found guilty of anything. Do you understand peoples frustration about that whole thing . What i understand is that the banks have not completely cleaned up their act. That is why we need a Consumer Financial protection to make them accountable. We have over 5,000 officials that lost jobs. If criminal authorities want to have the results of our investigation to consider further action they can do so. We are going to make sure that these banks raise their standard of conduct to what we expect and what the consumers deserve. That is our job and we will continue to do it. Good to see you again. Thank you for your time. Richard cordray. We have a news alert on Weight Watchers. Seema mody with that news. Shares of Weight Watchers down about 8 after hours ceo James Chambers is resigning effective september 30, 2016. The company says it is commencing a search for a new ceo to lead the next stage of the companys growth. This has been a challenging year for Weight Watchers. This is a company that grabbed spot light in october of 2015 when Oprah Winfrey joined the board. You take a look at the chart from october to now the stock is pretty much given up all of those oprah gains. Wow. Thank you. Come out with new statement or something. It was below 7 when it was disclosed and went up to 24 and basically bled away the gains in the last nine or ten months. Make her the ceo. Make oprah the ceo. She seems busy sblmpt deshareholders would enjoy it. Time now for cnbc news update. Here is what is happening. Senate Majority Leader Mitch Mcconnell says congress is making congress towards funding the government and providing money to battle the zika virus. He made the comment before heading to the white house with other congressional leaders to discuss the legislation with president obama. Secretary of state john kerry says u. S. And russia could approve air strikes but he implored all parties to adhere to the cease fire. I reiterate my claw to all parties to observe the sesation of hostilities. This is an opportunity for syria. The Cleveland Browns have placed quarterback Robert Griffin iii on injured reserve. The team says he has a fractured bone in his left shoulder. Nasa scientists are drooling over these pictures from mars. The curiosity rover has been exploring the lower portion and sending back these views of the rock formation. Kind of looks like the desert in the Southwestern United States which is beautiful to say the least. Thats the news update. Back to you guys. Those are amazing shots. Thank you. The Hedge Fund Industry continues to struggle amid higher fees and lower returns. How is bridge Water Associates bringing in billions of dollars despite big losses . What is the government doing to try to win the war against cyber hackers . The chief Technology Officer will be joining us later on closing bell. Ught i was crazy to open a hotel here. Everyone said its so hard to be a musician, but i cant imagine doing anything else. Now that the train makes it easier to get here, the neighborhood is really changing. Im always hopping on the train, running all over portland. I have to go wherever the work is. Trains with innovative Siemens Technology help keep cities moving, so neighborhoods and businesses can prosper. I can book 3 or 4 gigs on a good weekend. Im booked solid for weeks. It takes ingenuity to make it in the big city. [suspensful music] enepeople want power. Hallenge. And power plants account for more than a third of energyrelated carbon emissions. The challenge is to capture the emissions before theyre released into the atmosphere. Exxonmobil is a leader in carbon capture. Our team is working to make this technology better, more affordable so it can reduce emissions around the world. Thats what were working on right now. Energy lives here. Keeping the power lines clear,my job to protect public safety, while also protecting the environment. The Natural World is a beautiful thing, the work that we do helps us protect it. Public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. We want to keep the power on for our customers. We want to keep our community safe. This is our community, this is where we live. We need to make sure that we have a beautiful place for our children to live. Together, were building a better california. Lets take a look at how the markets finished on monday. It looked like first thing this morning the sell off would continue but fed governor came out with pretty dovish comments that seemed to turn the market around. Dow up 239 points. S p 500 up 31. Nasdaq the better performer up 1. 7 or 86 points today. BridgeWater Associates is the Worlds Largest hedgefund. So far it hasnt been the worlds best performer. That doesnt stop new money from flowing into its flagship fund. We are joined with the details. We dont usually hear about money flowing in. This is an unusual story. It is remarkable to see hedgefund gathering new client assets. That is what we are seeing here and the numbers are huge. Since last year when bridgewater opened a new strategy it has gotten some 22. 5 billion in new assets according to reports. Earlier in the day 11. 1 billion of which has flowed in just this year alone and numbers at the moment are very mixed. The famous all water fund is up reported 13 whereas Pure Alpha Fund is down 90 . The alpha fund blends the two strategies together and it is about flat. Bridgewater is the Worlds Largest hedgefund Company Managing 150 billion in assets in total based in west port known for unique culture which embraces the notion of radical transparency which involves and all of that is a part of creating culture of very direct feedback. Interesting place to work. And ray dalio because of his cultural issues and ideas he is a big fan of meditation. I remember hearing about that a couple of years ago and the audience was wrapped. They want to hear from him where he gets these ideas. You want to know what makes them tick. How they perform and what it is that allows them to get through their daily routine and for him it is the practice like 20 minutes two times a day from what i have read. Very interesting. I hope you ask him about that tomorrow. Maybe something to that. 22. 5 billion is that a bet on ray dalio . You have other superstars not doing so well. There are a couple of factors. People are definitely betting on the long game. Fte talked to a couple of Pension Fund Managers who had partaken to the opportunity. Now future clients say we are betting on somebody and their track record. We consider this a great opportunity. I hate to make this comparison, very different strategies and before people. I have heard that thing in regards to steve goen. There are some investors who say i will be lining up. The man has tremendous returns. We will see if that happens. It also seems besides dalio there is a process there. The firm is going to live on past him and they have a method that you can at least have some sense of what it is. Absolutely. One thing i would love to hear more about is this all weather fund. It is doing well this year but has had a mixed few years. That is the Risk Strategy supposed to perform well. It looks at Market Conditions in terms of four quadrants and tried to manage in a way that is able to withstand any weather. Whether the model is in question or whether they have tweaked it going on. How is a very interesting question. Good stuff. By the way, ray dalio will be one of the heavy hitters tomorrow at the delivering alpha conference joined by the likes of paul singer bringing their best investing ideas to the conference. We are going to try to get andrew to ask ray dalio about his meditation practice. I think andrew does meditation, as well. They can compare donald trump has been calling rival Hillary Clintons health into question for weeks now. After nearly collapsing at an event over the weekend the democratic candidate has been diagnosed with pneumonia. How does all of this impact both campaigns . Silicon valley has lost its title as startup central with cities like austin and miami ranking higher according to new data with ipo activity slowing and Venture Capital getting more selective we will check on the state of Silicon Valley coming up. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive upgrade your phone system and learn how you could save at vonage. Com business for fastidious librarian emily skinner, each day was fueled by thorough preparation for events to come. Well somewhere along the way, emily went right on living. But you see, with the help of her Raymond James financial advisor, she had planned for every eventuality. Which meant she continued to have the means to live on. Even at the ripe old age of 187. Life well planned. See what a Raymond James advisor can do for you. Hillary Clintons Campaign dealing with the fallout from clintons pneumonia diagnosis thmpt democratic nominee had to leave a september 11 memorial early yesterday. John harwood has been following the story unfolding from washington. The latest coming at a time when the polls are getting close again. This was not a good episode for Hillary Clinton. Lets step back and set the context. We had a New Washington post poll which showed that in a fourway race including gary johnson and jill stein Hillary Clinton has a five percentage point lead over donald trump significantly but smaller than it had been. It had been eight percentage points. That was the back drop for this episode yesterday when Hillary Clinton collapsed while waiting to enter her secret Service Vehicle and leave this 9 11 ceremony that she had ducked out on early. That was very bad video for a 68yearold candidate to have the public see the time she was trying to hold on to that lead. Today her campaign was in damage control with her press secretary coming on msnbc to say she was going to put out more information. Beyond that and in the next few days we have been in touch with her physician to get the materials together we will release that to further put to rest any lingering concerns about what you saw yesterday. That is an absolute must. Donald trump came on squawk box and said he is going to release additional medical information. He was examined last week. Both candidates, she is 68, he is 70, have an onus to put out this information. Now they appear to be doing so. But this was a moment of big concern for democrats especially in terms of how the Clinton Campaign handled it. We were just talking last hour about how it is a tradition now but how do you impose on trying to get all candidates to release tax records and Health Records just so you know what you are dealing with before you cash it in. I find it curious that donald trump has released some information about his health. There is question about the transparency of both candidates. The Health Records he released was a letter from his reported doctor that was very short. The results are a ridiculous statement. Now saying he is going to be on dr. Ozs show and release detailed results. He told the squawk box guys if it wasnt good news i wouldnt be talking about it right now. Was it good news he wouldnt be talking about it. Both campaigns engage in some level of spin. It seems that in Donald Trumps campaign he only wants to tell people what they want to hear. When we talk about the statements he made about fed chair yellen earlier this morning he was on cnbc in may saying he respected janet yellen and that she was a capable person. I dont understand what his position actually is. He happened to say in the course of the comments this morning how i dont have much debt which is something we cant verify because we dont have financial documents. In other times he calls himself the king of debt. He has done many things. We are less than 60 days from electing a new president. Megan smith, the u. S. Chief Technology Officer. Did you know we had one . On what the next commander in chiefs first techrelated priority should be. Well talk about that when we come back. Do what they do. Better. I work with startups like alpha modus to predict markets five times more accurately. I am helping tv networks use social data to predict what people want to watch. And i worked with marchesa to turn fan feeds into a dress that thinks. Hello, my name is watson. Working together, we can outthink anything. That i would never le become a superhero. Atson. [singing indistinctly] but i learned how to fly. Just to come back in a new disguise, and be the hero ive always wanted to be. Tech crunch disrupt took off in san francisco. Examining the state of startups, and Silicon Valley itself. Our julia bore sting is there, joined might megan smith. Julia, take it away. Thanks so much, sara. Thanks for joining us today. So youve been in your job two years and your job is to improve the use of data and information and technology across the u. S. Government. What is the number one tech challenge facing the government right now . The thing were really focused on that the president has a focus on is really modernizing government. And that allows us to not only kind of bring tech folks this kind of talent into government, into the policy table, so that we can work on things like open source and Artificial Intelligence and Machine Learning policy, net neutrality, those things. But also modernizing our service delivery. So, you know, if we can make all these amazing products. Amazon, facebook, google, twitter, we should really have the Government Services be that good from the v. A. , from all of our different irs, et cetera, to trying to bring that crew in to Work Together with our incredible talent there. And then the third one is capacitybuilding. Projects like tech hire, which is using code boot camps to upgrade the capabilities of the American People. So there are 600,000 jobs open in tech. All over the country and all industries. And yet people dont go for them. They pay 50 more than the average american salary. So were trying to get more people in using those systems. So the fact that there is this dearth of people who have the right technology to take these jobs, is this an issue of the health of the American Economy or does it become an issue of National Security . National security, national competitiveness, its a real opportunity. So the Vice President , for example, is in st. Louis on friday last week at one of the great incubators there started by the naacp launch code so people can take these Short Courses and learn these kinds of skills quickly. Theres almost 1,000 employers who have signed up for the Tech Initiative now hiring from this alternative track that quickly accelerates americans into the highpaying jobs. There has been a lot of talk here about the Cyber Security. And the risk of hacking. I mean, there has been a lot of talk there is a potential risk for Voting Machines to potentially be hacked. Does the government have the right people in place to prevent hacking . Yeah, there is a really strong we dont work on that as the cto but federal cio is the lead for the Cyber Security National Task force. President put that together. So there is all kinds of teams who work on that, as well as, of course in our private sector advancing this field. Definitely one of the great challenges of our time. So in terms of the elections themselves, the state and local leadership lead that, and then, of course, the department of Homeland Security is available at request to work and support them in any point along there. So we feel good about that. What do you think the top priority should be for the new administration and are you concerned that all of the work you have done in the past two years could be undermined . You know, were excited about whats going on. Its the fourth quarter, so the president says great things happen. Getting things done. We have opened data sets. Engaging on, like, the census team now has a Software Developer kit for cities. These folks are engaging on that. Really feel like thats a partisan thing. This is the thing that is happening in the world today, as Mark Andreessen really the digital modernization happening across the private sector, Nonprofit Sector and government sector. And really proud of what the president has led with bringing all of us together with our incredible colleagues at government to get this stuff done on behalf of the American People. Megan smith, thank you so much for joining us. Really appreciate it. Guys, back over to you. All right. Julia boorstin, thank you very much. Now that donald trump has proven that a businessman can generate votes and possibly win the presidency, we wondered will jpmorgan chief jamie dimon ever jump into the president ial race. He was asked that. His answer may surprise you, coming up. Remember here at ally, nothing stops us from doing right by our customers. Whos with me . Im in. Im in. Im in. Im in. One, two, wait, wait. Wait wheres tina . Doing the hand thing . Yep we are all in for our customers. Ally. Do it right. We are all in for our customers. Hey, its been crazy with school being back so were constantly going over our data limit. Oh, well, now all of our new plans come with no data overages. Wow, no more overages . So that means. Go on. Say it. Well finally be in control. And were back. Introducing new at t plans with no data overage charges. Jamie Dimon Jpmorgan ceo named talking about Interest Rate hikes, asked about whether he would run for office. Listen. I would love to be president of the United States of america, okay . And until until donald trump got they said youll never have a rich businessman who has never been in politics be president. And so i clearly was wrong about that. Its just too hard. I mean, i think most people, you have to be senator, governor, run for a party. Its why michael bloomberg, who would be imminently qualified, didnt do it. Why a lot of you have county done it. So i just think its too hard and too late. Too hard and too late. Too late, i dont buy, because trump is 70. Ronald reagan over 70. Bob dole over 70. And 60. Jamie and i are the same age. 60. Plenty of time there. But a businessman making the transition, or a business person. What do you think . First of all, i to think its doable, perhaps, somebody like bloomberg or even bloomberg did the math and did the electoral calculations and said it just isnt there for me. Remains to be seen if trump can get more than that base that hes already mobile. Of. How many Business People enter a go into a venture believing theyre going to lose . Thats true. Certainly believes hes going to theres a difference between a billionaire businessman, like donald trump, and a billionaire bank ceo, who is at the center of a one of the biggest banks in this country during the financial crisis. More and more important whether hes sitting in the white house some day is potentially could he be sitting as head of the treasury secretary, also asked about that. Thats more likely. He was on obamas short list back in the day. So maybe thats another position. Although he wont say who is supporting for president. Endorse Hillary Clinton that would probably work against them, wouldnt it . Probably no up side to necessarily say one way or the other. Interesting, the original jpmorgan felt that president would be a demotion. I was just going to make that point. Exactly. Or as pocahontas as trump called her this morning, in the interview. Senator elizabeth warren. Good to see you. Thank you for joining us. Thank you. Thank you. See you on friday. Were going to do this again. We are. Its always by accident. Kelly will be back on tuesday. That does it for closing bell. Fast money starts right now. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys times square, im melissa lee. Tim seymour, karen finerman. The problems at snung only going to help apple. How much so . He is here with the bold call. Plus, hillarys bid for the presidency is, well, in a word, stumbling. Recent history suggests that could be bad for stocks. Well explain. And later, could elon musks bit for solarcity be in jeopardy . Why traders are skeptical he could unite the companies. First, a mass jiff turn around in the markets today, dow surging 239 points