Sanctions against wells fargo. Well have that story plus reaction from former fdic chair sheila bair. Well get to her in just a moment. Plus a new report says amazon is getting more serious about its own shipping business and it may be looking to ditch fedex and ups altogether. This as amazon stock continues to power higher. More on that story coming up a little bit later this hour. And shareholders voting today to approve one of the largest corporate deals in history. Well take a closer look at Anheuser Buschs takeover of sb miller. Is that enough . We have more in the next couple hours. Lets begin on the breaking news of the oil front that has moved the market today. Jackie d. Has it for us. The spike in crude oil putting some traders off guard today. Closing today over 47 a barrel. Now, three major headlines coming out of reuters regarding the opec meeting, but remember, theyre citing sources. Nobody officially has gone on the record here. You mention there is potentially a deal to limit production with november execution. Also theyre saying that they would limit to 32. 5 Million Barrels a day. Thats about a 700,000barrel cut from where production was in september, and also saying they would go to nonopec output for support here. Lets break these down, traders talking to me about this saying, first of all, you need to get an official on the record here so everybody waiting for that. But second of all, that execution in november is exactly what opec would like to have happen right now. They dont have to exactly move at this point, but they keep prices up for roughly another two months. Meantime, the russians and u. S. Is the biggest production. The russians dont think theyll be producing any time soon and the u. S. Is cut short. We had a reversal in positions here. A lot of short positions going on. People not expecting to see anything concrete come out of this meeting, so you probably got a little Short Covering today which helped that spike. Still, my main takeaway is traders telling me theyre not convinced by this, not just yet, and theyre looking to potentially fade this rally today. Its been a time since that first announcement. Lets get to breaking news with wells fargo now and will frost who has more on these sanctions. Will . The state of california is suspending business relationships with wells fargo for one year. A symbolic move rather than a major hit to their earnings. Wells fargo has responded saying, we certainly understand the concerns that have been raised. Were very sorry and take responsibility for the incidents in our retail bank. We have already taken important steps and will continue to do so to address these issues and rebuild your trust. This, of course, comes following the news of a night that the Company Finally succumbed and took back pay. Stumpf will take 142 million. It represents all his investment earnings, a big chunk, but an amount that many people think is not enough, including senator warren who thinks he should resign and return every nickel, based on tweets earlier today. Mr. Stumpf, of course, faces congress again tomorrow where the tone remains tense. Heres fed chair janet yellen taking the heat on the lack of Bank Regulation on congress earlier. Dont you think its time the fed does something . How long does this stuff go on before you get outraged and take action . Well, as you pointed out, we have done something, the action you described in 2011. Do you know an 85 million fine to this bank is laughable. I know you know that. We are very concerned with all of the compliance problems and violations of laws. You know theyre laughing at you, right . You know theyre laughing at you. The time of the gentleman from massachusetts has expired. No doubt this will worry bank ceos across the country, wondering whether the whole sector will face a backlash from regulators and lawmakers just months, of course, after the banks finally performed well in the big ccar stress test. Guys . You covered it well. We were going to ask you questions but you covered it all and i know you have a plane or train to catch to get to washington for those house hearings tomorrow. Here is the former chair of the federal deposit insurance corporation, sheila bair. What a day. What do you think . Well the club acts and now these sanctions. Theres always a pilingon effect when you have a situation like this. This is serious. This was very, very bad. Although i do think what the board did yesterday was very significant. 25 of what hes accumulated over a 30year career at wells fargo, that packs a punch. So, again, it was bad. It was very bad. It was in the league of the kind of conduct that brought us the subprime contract . No. It was in the retail bank. And again, it was bad, i dont want to suggest otherwise, but i do think there was probably an underreaction on the regulatory response and now youre seeing it swing oethe other way. This had to be a huge blow to california. That had to hurt. I suspect they do a lot of business in california. Just the desire for State Government officials to show a sign of disapproval and protest, and california is really making a very big statement. Should john stumpf resign . I dont think so, based on what ive seen now. Thats the boards decision, obviously, but it was bad, what happened, but there are a lot of good people at wells fargo. Its a good franchise, its a valuable franchise, so i think you have to take all of that in the mix. Again, its all kind of relative. Im looking at the various ceos who lost their job as a result of the subprime crisis. For him to kind of take the hit, if it happens, it happens. I think one of the reasons there is a lot of outrage here is people dont understand it, so you cant always understand ceos and mortgage back securities. Do you think hes taking the fall for something i think there is some pentup anger. Yeah, i think its coming to roost. When you consider what senator warren said on tuesday at the Senate Banking hearings, you know, 5,000 people, and as you put it, 12 an hour tellers lost their jobs over this and he is still in office at this point. It was, and i think that was one of the many missteps. You just dont know what youre reading out in the public. It looked like they identified the problem, just kind of this lowlevel employee conduct and it was about supervisory incentives and the structure. The question is, why didnt they see this . I said it before, and i said it at the fdic route, when they scope those exams, they should read. Read analyst reports. Sometimes where theres smoke, theres fire, sometimes theres not, but you should take a look. I think they were a little behind. They recouped and did come forward, and i think the two lead regulators worked well on this. It was very serious. They breached a mainstreet customer trust, so theyll be paying a big price. This will be going on for quite some time longer. As we look at the pendulum more broadly here in terms of the health of the banks and the behavior of the banks and the regulation on the banks, where do you think we stand . Have we figured this one out appropriately or no . I dont think we do. Its safer. It is a better system, theres no doubt about it. But the cultural issues are still there, the risktaking incentives are still there. Its now moved into what we call the shadow sector, the less regulated sector. Its a combination of things. How do you police that . Its what the fed is doing, is to get those Capital Requirements up, because the higher the Capital Requirements, the more pressure you create to downsize. The market regulates it. The government says you shouldnt be bigger than x amount of dollars. The market drives that. By building that capital cushion, you dont have to worry theyll have to get a government bill out, which is the last thing you want to happen. Its probably not over yet, right . I doubt. It sound like the opc, theres going to be a lot of litigation, some shareholder litigation. And the employees, right . The employees. I can only assume the state will be coming in. This is going to be a long haul for wells. Theyre a strong franchise going into it, but im sure that she looks young. I still prefer raising capitalization. Be sure to watch cnbcs. That is tomorrow and the action begins at 10 00 a. M. Eastern m fim Keith Fitzgerald of mondaymorning. Com is with us, and Rick Santelli checks in from the cme in chicago. Steve, what do you make of the pop in oil, the impact it had on the oil stocks and then the overall market right here . Oil and the whole oil patch has been torqued to go higher. If you look at where oil is now, bill, still struggling to get back above 50 a barrel, thats still extremely bearish. If you look at what opec says, even if its a nonofficial opec, what does that mean to the overlay . What does that mean to the environment . You cant take it for face value anymore. They always disappoint. It doesnt matter. You dont need production limits, you need Production Cuts, drastic cuts to be bullish oil. If oil is not going to be bullish, the market is not going to be bullish. Oil should be bullish on global growth. There is no global growth. Our gdp is lacking and ever shrinking. Thats why im still bullish. Keith fitzgerald, its interesting to look at this potential seating of 300 Million Barrels. Again, what would you see as the significance of these announcements . Is it just the sense that opec is going to act Going Forward to try to choke off the oil supply . I think youre seeing a reflex. This is a lot of hoping. The bearish case is still very strong. I would be looking to fade this rally. There is not an official on record. You have iran who needs a lot of currency right now. Opec has tried to violate every agreement its come up with in recent history because theyre never acting like true partners. Im really skeptical when i hear about this one. All right. Rick, let me pivot you to Janet Yellens testimony. I thought of you when i read some of the headlines about this. When she said the banks themselves are well capitalized, theyre in much better shape although they are suffering from interest income, the lack of it right now. I thought of you because i could picture you saying, well, whose fault is that right now . Do you want to pick up that ball . Absolutely, and i think its acute in europe right now where if you think our rates are low, you have to dig a shovel to find the european rates. I think Deutsche Bank is just ive said it many times, the canary in the banking coal mine. These are interesting issues and i think banks will have a hard time. As far as all the compliance issues, you had sheila bair on, one of my favorites. The banks were saved. Well never be able to look at what would have happened, the counterfactual, but boy, i tell you, if you could go back and change history, letting banks fail and trying to have the, at the time, sheila at the fdic, guaranteed deposits, we probably wouldnt have been in this mess. She did say one thing thats so important, Capital Requirements. Take the futures in the street. If you believe people are speculating too much, you raise margins, end of story. Its the same principle in Capital Requirements and its the same principle on everything the Banking Industry may dive into, whether its commodities. I dont think any regulator or any agency of the government ought to tell these institutions what they can and cant play. But they dont need to, as sheila pointed out. If they get into things you think are dicey, let them sail on their own sailboat. Just make the cross to do so more expensive. Thats the way to accomplish these things. And i do think we have to keep an eye on the Deutsche Bank situation as its metastasizing in what we see Interest Rates doing. Within four basis points of the alltime low yield, we really must Pay Attention to that in europe. Rick, where does that leave us . Speaking of capital, especially capital of the big german bank. It keeps moving lower, although william was saying the fundamentals are good enough to raise rates, so where do you invest . I think you have to go for quality companies. They missed their crisis in formation, they missed the crisis in recovery. They have an opportunity for a return on their money right now, and to ricks point, this is a contagion waiting to happen. They carry 20 times the size of lehman book. So the fact they think they have this under control, to me they have no idea what the true risks are. Steve, are you trading at the banks at all right here . I just think the banks stand too many headwinds right now. Even if you look at wells, you say, that was just something, it was an anomaly, its not going to affect any other bank. Banks are going to have their brainstorming meetings. Its going to curtail sales. Its going to affect them. Its going to affect growth. Its going to affect some level whether its incremental or if its a substantial effect. I think that financials, there is no Interest Rate environment for them. This is another headwind. I think you have to stay clear of them. Eventually theyre going to be a buy. Theyre not a buy just yet. Give us a sense, rick. It continues to drop. Is it just tracking the german boon . If so, maybe you could try to move around it. What do you make of it . No, i think we are. I think were tied to the hip. The jgbs closed at the lowest yield, around minus 9 basis points around the 12th of august. I think we are all connected at the hip. You cant evade the policy implications and all the issues when the ecb do something. It affects capital, capital flows at the touch of a button. We are part of this policy contagion, and i do think its one terrific reason for our central bank to switch the gear on the transmission to a different direction. Listen, if theyre going to take their economies down, why do we need to be part of these bad policies . Its not about what you did, being right or wrong. Janet yellen should just look at the future, forget everything in the Rearview Mirror and do the right thing. We need to divorce ourselves of plunging rates and the implications they have for the only transmissions we truly have, the banking system, until all the other ways, capital, and we see it happening all the time, various ways for investors to find capital entrepreneurs but theyre not ready for prime time yet. Its the only transmission we have in the banking system. Somebody on some level needs to protect it. We have to go. I dont have time for a response to this, but just for the record, imf had christine leguard tell sarah eisner that she doesnt have the evidence that calls for a fed increase rate just yet. Thats what we have to divorce ourselves from. That mentality. I hear you, rick. Thanks, guys. See you later. About 42 minutes to go here. Dow is up 80. A big spike on the back of this word that opec will try to curb production at 32. 5 Million Barrels a day. Huge move there. And the nasdaq is up 5. Another big story were following. Its whats happening at nike. Does it stay at nike . The stock lower on disappointing north american results and future orders. Our Courtney Reagan tells us which other apparel makers could be suffering from the same trend. Also coming up, cutting out the middle man. Amazon is reportedly looking to replace fedex and ups with its own delivery service. They tell us what impact it could have on the ecommerce diet looking to trade at alltime highs. Another percent and a half up today. Youre watching cnbc, first in business worldwide. Announcer when they test you, stand firm and move only when you hear the seatbelt click that says theyre buckled in for the drive. Never give up till they buckle up. We are in the wake of these news that opec has reached a deal to try to curb production to 32. 5 billion barrels a day. Hess, conocophillips and exxonmobil moving up to 86. 5, and thats not even the highest level its reached. Conoco is up greater than 66 as we try to get some information of what happened there in in algeres. Twitter and loop capital downgraded the stock today. Twitter is overvalued and also remains skeptical about different business combinations, disney, microsoft among the Companies Cited as potential acquires. Paychex, the outsourcing Company Targets small and midsized businesses, and paychex reports a Quarterly Earnings beat, but it did trim its profit outlook due to what it called discreet tax items. Be sure to catch the ceo of paychex on tonights mad money with jim krcramer right here on cnbc. The dow is moving even more so than exxon and chevron. It is down more than 4 in the settin setting. You can blame it on disappointing moves with nike. Nikes american future orders increased just 1 . Thats the lowest rate in six years. Future orders are the inventory requested by nikes wholesale partners, Like Department stores that sell the goods. Yes, adidas has taken some market shares, 31 in the first half of the year, but Department Stores have been working at getting too high sales across the board. They point out that the most recent quarter, the malls inventory declined for the first time in sales in about 18 months, and that was on purpose. As the Department Stores get levels more in line with sales growth, apparel manufacturers may be getting orders for less inventory for the bulk of this year or risk bigger markdowns if the inventory sits too long in that allimportant upcoming holiday season. So john kernon says hes more cautious on different brands ability to meet current expectations going into the new year. Kernon says it is a combination of wholesale demand for vendor merchandise as well as the store closures and uneven traffic. What nike is experiencing may not be alone. Bill . Courtney reagan there on the nike story. Well head to the close with 35 minutes left in the trading session here. The dow up 89 points, much of that the gain in oil and oil stocks leading the way today. Coming up, is it bye bye to ups and fedex . Amazon is reportedly looking to replace them with its own delivery service. Well discuss what it could mean for the ecommerces bottom line, coming up. Printing at the next level. You will not believe this. They are printing living tissue. This report you do not want to miss, after the break. Stay tuned. Hey gary, what are you doing . Oh hey john, im connecting our brains so we can share our amazing trading knowledge. Thats a great idea, but why dont you just go to thinkorswims chat rooms where you can share strategies, ideas, even actual trades with market professionals and thousands of other traders . I know. Your brain told my brain before you told my face. Mmm, blueberry . Tap into the knowledge of other traders on thinkorswim. Only at td ameritrade. This is not science fiction. Its a philadelphiabased startup using 3d to print human tissue. Reporter that startup is called bio bot, and it was launched by Danny Cabrera who decided he would stay local to launch his business. Its a 3d printer that can print different tissues like skin and heart tissue. They are using it to research new drugs. Companies are interested in seeing the effect of the heart and liver. Theyre using the biobot to print human liver tissues to see if the drug is going to be hard enough on them. They were able to access different lab spaces and equipment for very cheap. Biobots have sold hundreds of different printers. It retails for 10,000 which cabrera says is about onetenth of what the cost of this technology was before 3d printing came on the scene. What theyre printing out here, skin tissue, it doesnt have full functionality or capability of living skin that you see on your body here, so it doesnt look or feel like that, it doesnt have things like hair follicles on it, so were a long ways away from printing an actual heart that you could use in a heart transplant, but its come a long way and hopefully will develop in the future. I dont know about that mustache. It looked like it was 3d printed itself. That mustache was real. I saw it in person. So this is for real. We wouldnt jump to the conclusion that this will be used for skin transplants or Something Like that. This is just for Pure Research right now, is that the idea . Reporter absolutely, bill. To kind of break it down for you, what they say they do is combine living cells you either get from a donor or you purchase them. This thing that looks like a big closed petrie dish, they liken it to a print color cartridge that you then put in the 3d printer. It will put outlines of ce line that will grow into human tissues. Right now its in the really, really Early Research phases. Were nowhere near able to print out a heart or lung or liver you could use in a transplant. 10,000 isnt much in the scheme of things. I would not have been surprised if it was 100,000. Like you said, cost is coming down, isnt it, kate . Reporter that is what it used to be, bill. He said the technology doing similar work in the past would be the size of a mainframe computer. It was incredibly huge and would cost 100,000. Theyre using it in cosmetic companies, pharmaceutical companies, and theyre using it in all these different scenarios. It will be amazing to see what they can use it for in a few years. It makes my skin crawl. Very amazing. Thanks, kate. Appreciate it. Time now for a cnbc news update with sue herrera. Sue . This is the news update at this hour, everybody. There has been a shooting at Townville Elementary School in anderson county, South Carolina right near the Georgia State line. Officials say one adult and two students were injured and a teenage shooter is in custody. The students injuries do not appear to be lifethreatening. Officials believe a death reported earlier in the day in the same town may somehow be linked to the shooting. The u. S. Will be sending 600 additional troops to train and advise the iraqi forces. Currently the u. S. Has about 3600 troops in iraq. It would be an important defeat to the militants. Severe storms knocked out power to the entire state of South Australia today. State agency says traffic is at a standstill. Trains and trams are stopped and ports are closed. More than a million and a half people have been left in the dark. And talk about the circle of life. The lion king is reportedly getting a makeover. Disney announced today that john favreau will direct a, quote, unquote, new reimagining of the movie. No date is set yet, but he recently reenacted a live version of the jungle book and it was a box office blowout. They made a lot of money on that and now theyre going to try it with the lion king. I was disappointed in the broadway show. You didnt like the broadway show . No. I thought it was cheesy. I saw cats, too. It was like a high school production. Dont mess with perfection. Leave the movie alone, for petes sake. Theyre looking for another income stream of it. Did you see the remake of the jungle book, bill . No. I did. It was really good. My hopes are up, then. See you soon. Im still waiting to see the magnificent seven remake. Oh, come on. You could have pushed them to 40. 77 points on the dow right now with 27 seconds lift. A trader will tell me what he is watching. Later, man versus machine. A new report showing Artificial Intelligence will be good for the economy and even for jobs. Stay tuned for that. Sick of getting gouged for limited data . Introducing tmobile one. 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If you have any sudden decrease or loss in hearing or vision, or any symptoms of an allergic reaction, stop taking cialis and get medical help right away. Why pause the moment . Ask your doctor about cialis for daily use. And for a 200 savings card, go to cialis. Com even Quarterly Earnings, analysts have been expecting a loss, actually. Revenue did come in below forecasts. The Company Announced the chief Financial Officer is leaving, and yes, the mobile phone maker of the Software Company says it will cease making its own handsets. Ive been getting all kinds of notes and tweets all day, you know, got the blackberry here. They are still going to make them but theyre going to use thirdparty contractors to make them, so im still hanging onto my blackberry here, kelly. Not giving up yet. On the floor here with less than half an hour to go here with managing director at rosenblatt securities. Weve had some opec news and news out of california. What are you watching for here . The ninth annual rosenblatt Global Change leaders conference. You just lost 30 seconds. Fedspeak. Theyre gearing up for a december move. It seems a little early for them to be laying the foundation for that. Its a long time between now and then. Theyve been laying the foundation all year. Do you really think theyre going to do it . It seems thats what the talk was today, but more importantly, forget about that. People are focusing on macro issues for sure, the election and the central banks. We start to get into earnings coming out next week. Lower expectations, but well have to see if that does something to increase volatility down here. What are people saying down here . Between opec and wells fargo, these are the kinds of news that will move the needle a little bit over here. Weve seen action in oil today, weve seen Energy Stocks behave themselves. Nice move there, drive in the market. On the other side when you talk about wells fargo, a lot of people are talking about Deutsche Bank and what the situation is over there. Credit swiss indicates they might have to do a capital wave. Well be watching those two situations ach situations. A lot of things to focus on, but right now its about the global conference. All right, well let you get back to it. Fascinating. Anheuser busch finally won approval for its 100 billion takeover for rival sb miller, opening the tap, it says here, for a new world order for the beer industry. Eric chimee has bellied up to the bar to find out. Did you write this. I did not write that. They voted 95 to approve the takeover of Anheuser Busch of sb miller. The deal was over 100 billion. Its one of the largest in corporate history. After years of constant acquisitions, the new ab inbev will be the more consumer profitable in the world. In beer, its dominance wont even be close, selling 27 of global beer volume and making 46 of global beer profits. Corona, stella and bud will be the next biggest brands and it will have triple the revenue and four times the profits as heineken. It could have resulted in a bigger ab inbev but it had to sell its assets to get it done. It has stake in miller, coors and grosch along with the chinese beer snow. They are expected to start trading october 11. Bill, back to you. And wouldnt you know it all happens on National Beer drinkers day. Today is National Beer drinkers day. Somebody told me that. Eric, thank you. You got it. We told you earlier that california treasury john chang has issued a 12month sanction against wells fargo over its fake accounting scandals. Moments ago he held this news conference. Heres a bit of what he had to say on that. These sanctions will be in place for 12 months. However, should wells fargo fail to comply with the settlement agreements it has reached with federal and local regulators or evidence surfaces that they have reengaged in the same behavior, the sanctions may escalate up to and including termination with our business with the bank. Sheila told us at the top of this last hour, theres probably more coming. Its unusual for a state to take this kind of unilateral action. We didnt do enough then, so we have to make sure heads are rolling now . Its an extraordinary move here that could affect how theyre underwriting uni bonds and doing all sorts of things. Somewhere on the bottom line, thats for sure. We have 18 minutes left in the trading session here. The dow is up 94 points. Are the days of ups and fedex delivering those amazon packages near an end . Amazon is making its own delivery business. The question is, is it a game changer . Well talk about it, next. You tell your Insurance Company they made a mistake. 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Just because theyre going some of the way, delivering stuff on their own, does that mean theyll go all wait . I dont think theyll go all the way at this point. I dont believe they have the desire to become a longhaul carrier. I think in this environment, consumers are looking for that delivery speed almost as much as price and selection in terms of when they make a purchase decision, and obviously if amazon has greater control of its products, it avoids the bottom. It also has some immediate cost advantages to it at the same time. Fedex and ups probably dont mind diversifying their business, too. They give amazon a pretty good discount, so replacing that with other retailers might actually work out for all three companies here. If it works out, you say go halfway but not all the way. If this halfway is working out, why not just go all the way, then . Couldnt this be the strategy here, test the water, see how it works out and maybe go all the way . Its possible. Thats been the m. O. For amazon, slowly toe the water and see what works. I think the challenge here will be the coordination if they wanted to pick up deliveries from consumers themselves, or businesses. Right now its pretty centralized, pretty organized. A vendor drops off a shipment at the Performance Center and the orders come in and they pick them up off the shelves. Picking up orders for consumers, that will be more challenging to figure out. If anybody is going to do it, it will be amazon. I think that will be in the long game. Well see. Its possible. Well see what action they get with the Freight Carriers as well as some of the Trucking Options they have. According to the journal, their shipping costs are on the opposite percent of sales. Theyve gone from 7. 5 in 2010 to nearly 11 . If amazon was to go the last mile of the shipping business, how much more effective do you think their shipping costs could be . You reach a point, though, where you get some leverage. Amazon, everyone in the space has realized they cant compete with amazon on speed. Retailers have partnered with amazon. Amazon can pass off a lot of their shipping costs to those retailers through its shipping by Amazon Program if that becomes a bigger part of the mix. As demand fulfilled by amazon continues, they can uptick the price to retailers and offset that shipping cost. I think thats how they get away with that last mile is passing it off to the Performance Centers. The question continues to be asked, as it has for years, what will jeff bails do next . We remember those drones when he went on 60 minutes. 10 minutes to go here in these last markets. Thats our last mile. The dow, 104 points up again. Big word on the use of this opec Production Cut, if you will. Details are still being sketched out. The s p up 10, the nasdaq up 10. One money manager coming up says everyone is worrying about the election and the fed, but he says with stocks at an alltime high, you should block that out and get in the market. Hell tell you where to put the money, coming up next. eeeeohmumohweh hush my darling. dont fear my darling. the lion sleeps tonight. hush my darling. man snoring dont fear my darling. the lion sleeps tonight. woman snoring take the roar out of snore. Yet another innovation only at a sleep number store. We have seven minutes left in the trading session with the dow up 110 points. Were waiting for cal. He had a mishap. He broke his foot. We hope youre feeling better, arthur. What caught me is how you invest. You have 3. 6 billion under management, primarily you use etfs. First of all, thanks for having me on. Great to be back. Youre right, we primarily use etfs, because most of our investments are macro based. Its the most expressive vehicle for us. What kind do you have . Its really all over the place. Are you trying to make calls on what you think the fed is going to do . Its very hard to predict. People have a hard time figuring out whats going to happen, thats why nobody can successfully predict and make a lot of money in the money market. We found a way that we can measure the market and react and adjust accordingly. Today opec has apparently reached an agreement and oil has popped here. Weve been big fans of the nasdaq. Its at an alltime high. Financials as well, people thought they were going to raise to 65 here last week and now theyre looking at december. If you can get the financials and energy in gear to go along with technology, get s p at alltime highs, we could be off to the races. So you think the dow and s p will catch up with the nasdaq. With the news today, it will certainly help. Well take a break. We got the dow at 112 right now. Closing countdown in just a minute. Senator Heidi Heitkamp will join us. He prepares to return to capitol hill for more testimony tomorrow. Shell join us next hour. Youre watching cnbc, First Business worldwide. You pay your Car Insurance premium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . If you have Liberty Mutual deductible fundâ„¢, you could pay no deductible at all. Sign up to immediately lower your deductible by 100. And keep lowering it 100 annually, until its gone. Then continue to earn that 100 every year. Theres no limit to how much you can earn and this saving applies to every vehicle on your policy. Call to learn more. Switch to Liberty Mutual and you could save up to 509. Call Liberty Mutual for a free quote today at liberty stands with youâ„¢. Liberty mutual insurance. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Im in vests and as a vested investor in vests i invest with e trade, where investors can investigate and invest in vests. Or not in vests. Sign up at etrade. Com and get up to six hundred dollars. Coming up on the twominute warning as we head to the close here with the dow up 114 points, bob posani back in the saddle here for us at the stock exchange, telling us about a moment of drudgery in his life moments ago. Today is oil. Oil is stoerthe story, and i th theres word of a Production Cut deal by opec caught the market unaware, off guard, and were up 4. 5 right now. Word is the word right now. The saudis said we will not cut production unless it rain yanns go along with us. The iranians said were going to 4. 2 Million Barrels because thats how it was prior to the embargo. These are contradictory statements here, so unless the saudis are acting unilaterally here, you should be suspicious of any kind of word so far. Exxon popped admirabladmirab. He wrote that out and said it was acting like an internet rumor. At 2 00 eastern time, it did move and that helped propel the dow higher which is at 120 points right now, so were at the highs for the session on the industrial average as we head to the close here. If you put up other big oil names, even some of the foreign names that trade here on the New York Stock Exchange, all up about 4 . Occidental was up about 4 . Traders are favoring this rally. If you look at the shale names, a lot of big shale names like oasis and whiting, theyre up 10, 12. All up notably on that as well. I agree with your point about being careful. Well see what it does tomorrow. The dow up 112 right now as we head toward the close. The closing dollar right here on the big board as they celebrate 30 years of listing. Stay tuned for the second hour of the closing bell now with kelly evans and company. Ill see you tomorrow, kel. Thank you, bill. Welcome to the closing bell, everybody. Im kelly evans and we have another rally on our hands at wall street. This is because of word of an opec Production Cut. More details on that in just a moment. The dow at 108 points, leading the way to close at 18,337. The s p broad market index and the nasdaq trailing of only a quarter percent at 53. 18. One story is crude oil having its best day since april. 4. 5 . Crude nearing the 47 mark per barrel after reports on opec reaching that deal to cut output in november. How will the impact price in the long term will be the point of discussion shortly. And california issuing 12month sanctions against wells fargo. This after people like john stumpf experienced setbacks. Coming up, senator Heidi Heitkamp will weigh in. Joining me on todays panel, cnbcs commentator, mark santelli, reuters editor rob cox and tim seymour is here to kick things off. What an interest in the last couple hours. It definitely caught the market in general. You can see the move across asset classes. Not just crude going up, not just oil stocks going up, but treasury popping. If you look at junk bonds, which is the high yield credit atf, also popping. The machines kind of took this move and said, lets price something going on here in the energy makrkets. Were still kind of caught in this trading range. We dont see much happening, and thats why i think the opec hit the market the way it did. Rob, give us context around this. We heard from the state recently, they said the sanctions could go up and be permanent if there was further evidence. We dont know exactly how big an impact that will have on wells fargo. If you think about it, Cash Management and treasury operations. California is the seventh largest economy in the world or something, right . Theyre probably the biggest bank in california. Stuff like municipal bonds, any issuance like that. Theyve been put in the penalty box. And rightly so, i might add. This is going to have to push some other decisions around the board, i think. And meanwhile, Deutsche Bank is the bank people are kind of globally focused on here. What are you watching as this unfolds . In terms of Deutsche Bank and the overall bank sector, largely Deutsche Bank is caught as the political football here, because i think germany really has to act as if theyre not ready to defend banks yet again, except for the fact that how can you defend greek banks and not your own . I think the capital issues of Deutsche Bank have been there for a long time. The regular bulls eye on banks backs is not changing. If, however, you are seeing global Interest Rates get a kickstart from oil, maybe what we saw two or three weeks ago in terms of a kickup in inflation rates is real. Thats very good for banks, and if you look at multiples, i think things historically are very cheap. Imf managing director Christine Lagarde for her thoughts earlier today. We completed back in june, actually, a Financial Sector of the german banking system. And it is a system that is critically important with some systemic players. Deutsche bank is certainly one of them. I think we all have a stake in making sure that this situation is addressed, that the right measures are taken, that we dont fall into overdra overdramatization, but i think these measures will be taken. There is a reason that people seem to care about Deutsche Bank and its derivatives. Do you think thats where the focus should be here . Absolutely not. People talk about exposure, but we have to bear in mind that the accounts are by seniority. Deutsche banks exposure, gross exposure, is about 700 billion. Citibank is nearly 900 million and jp morgan 9 901 million. Talk about the capital level, then. Where do you see those conditions . Well, look, when we saw it a year ago, it was to shorten the platform, rebuild capital and strengthen leverage. Of course, now we wou i guess the reason i ask is if people are focused not so much on the fact that deutsche is in trouble but on the risk to the broader Global Financial system, do you think there is risk, certainly counterparty risk, if something in reverse happened to Deutsche Bank, or is it kind of filtered through the derivatives market. I think people are saying are we standing behind Deutsche Bank if we capitalize as need be . No one is queueing around the block to take money out, and i think thats the most important thing. Obviously if Deutsche Bank did run into difficulty, it would make the Lehman Brothers collapse look little. This is more serious and i dont think it will happen. It is the share price of Deutsche Bank getting the attention as to how much of a barometer people should be worried and what systemic applications are. What other things should we be looking at to know this is spilling into something broader rather than Deutsche Bank raising some capital. I think the problem, though, is the 14 billion hold on but theyre not going to negotiate this with the department of justice. What ive seen before, deutsche has plenty of time to rebuild this capital. People are saying, what would happen if it was 4 billion . Hey, chris, its rob cox here. You mentioned john. He was also a figure banker. He advised so many people to nra and that kind of thing. Is. We have to get through the next quarters results. We have quite a long time brl any agreement is finally reached. Hes an old warburgs banker. It was a client that was important, and i think he sees that as his Deutsche Bank. I think hell do a good job. Do you think mna is any part of the strategy. When you look at the German Market and that unicredit or Something Like that would give him a leg up on negotiations to getting things done . I think we also have to bear in mind that the worstcase snar yo is how we. Hes got a very, very successful Asset Management business because it gives him a great stream of low capital, low earnings. That could be something he uses to generate more capital. Hes spinning a bit of a gap apart from what the justice could create. Theres someone else taking over. An advice to erdowan. I want to point out this reason why this failure wouldnt happen is its too dangerous. Why . In the simplest possible terms, why is this such a dangerous potential event . The way the European Union moves on that is that you have to rein in a lot of your senior debt before a government can put in new capital. Its not like cart, its not like the uk putting in money. That creates, obviously, a massive issue in the credit market. Youll end up with people in this world saying, my goodness. We have a lot invested nd this bank. Anyone in this institution who is holding Deutsche Bank right now should expect to have some losses or something. They cant go claim that, geez, you cant go bad on this stuff because what would happen to us . You could well be right, but it has to cut through their liabilities, which is about 139 billion euros as of the second quarter. And they talk about sub order natured debt and the socalled syndicated capital which takes 10 or 11 million right away. The whole point is to bail people in. If you say you cant do a bailin, then thats effectiv y effectively. It gives an overflow of emotion. You will need a lot of people actually having stepped up to the plate. Great point, chris. How do you think to give Deutsche Bank an opportunity to buy back more debt . Remember, that was a major turning point ont only for the markets but the banks in general. They were op pportunistic. Could they be here . They could be. We also see the markets as a whole being the lightweight markets because Deutsche Bank has to deal with these people for a long time. Hes looking for any solution at the moment, and this could be another one. Please remain with us as we continue to talk about Deutsche Bank. There is much more coming up this hourld. Many. Kelly, shares of National Beverage plunging as much as as 20 today after a gloss uch reveals performance as inexplicable. National beverage has now issued a response calling the stock inflammatory. It was down 18 cents before the close. Glockus. Oil rallying after those reports on opec, reaching a deal to lim limit. Plus, many workers feral robots would take their job d. Thats later on the closing bell. Youre watching cnbc. Welcome back. Oil surged today. Look at these numbers. Opec reached a deal to cut production. Up 5 , crude up nearly as much. Nothing expected to be formal until opecs meeting in november. Joining us is global director of commodities at city research. So glad to have you here. What do you think, first of all, of the news, and secondly the prospects of each member actually coming wup with these cuts in november . Its a big surprise, but i think its a delay action. I think its an indication that even saudi arabia is willing to take action as the oil minister said, to nudge the market a little bit and get it a little bit tighter. Ed, you know, weve been in this range average around 45 a barrel for about six months, give or take. It doesnt seem as if anything has been able to break us out of that. Would this be enough to the upside or are we really just talking about rounding errors in terms of supply and demand balance . I think were still in this 45 range. There may be news that pulls it up to 50 but nothing going down to the 30 range. Yes, there is a very small margin of error between a surplus and a deficit in the market. The market is very finely balanced, and what opec is doing is trying to nudge it to tighten up a little bit faster than it otherwise might, taking the deminimus amount of action possible, and theyrepostponing it to see where the market might be in november, which the market might be tighter than it is now, anyway. Theyre going from 33 to 32 Million Barrels of production, thats what they say. How do these guys actually is this going to happen . Can they actually pull this together . Because it only takes one or two of them not to play along, doesnt it . It could come together. If you look at saudi arabia in the normal market environment, they burn a lot of oil for Power Generation during the summertime. They dont burn a lot of oil for Power Generation in the wintertime. The difference between the summer and winter burn is about half a Million Barrels a day. Just with saudi arabia moving from summer to winter could balance the market, but youre absolutely right. We have libya and algeria that could move the markets. There is probably no surprise in iran, there is probably no surprise in iraq. There could be kind of a negative surprise in venezuela where Oil Production has been sliding. Its going to continue to slide given the lack of Capital Spending in that country, and there could be a big disruption there. We could have higher prices. We are arguing 50 average for the fourth quarter, 65 by the end of next year. We think the bullish aspects of the market are more highly probable than the bearish aspects of the market. Were likely to see more demand than we are likely to see more oil coming back in the market. Let me ask ed about russia. What is your understanding of their role or participation in this opec announcement . Theyre pumping like crazy. Theyre at a record level. Theyll continue to expand production 1 a year, maybe, next year and the year after. Theyre a free rider on this. They would love to have the saudis orchestrate a cut. Theres not much they can do. Actually, part of the new world were in, a world where opec inevitably is not going to count as much as it used to, is that the three big producers, the u. S. , which if you add all liquid production oup, is reall the largest production of the three. These are three countries that could provide incremental needs of the planet for the next 5 to 15 years. I appreciate you joining us with reaction to this news this afternoon. Ed norris. Ce ojon stumpf taking 41 million of investment stock from him, in fact. Robots may take over jobs in some sectors of the economy, but that will actually create new areas of opportunity for workers, when we come back. Whats the value of capital . Whats Critical Thinking like . A basketball costs 14. Whats team spirit worth . cheers whats it worth to talk to your mom . Whats the value of a walk in the woods . The value of capital is to create, not just wealth, but things that matter. Morgan stanley welcome back. A report finds Artificial Intelligence on pace to give the economy a boost. Tell us more, dee dee roy. Hi, kelly, its a fascinating report. The premise is that it will make Companies Run far more efficiently so workers will be able to focus on highvalue skills. Goog google has been investing in high productivity. Based on 12 countries, ai found they can increase productivity 40 and Economic Growth could increase from 2. 6 to 4. 6 by 2035. Paul daugherty predicts that ai will be the single most Productive Technology for the economy. It will be the Biggest Technology because it stand to tra transform the way humans interact with technology and workers. But there are concerns, of course. Ais impact on jobs. A recent forester report finds that Ai Technologies will replace 6,000 jobs in the u. S. The key to minimizing job cuts is educating workers. Why do you have to use a decimal point when youre calculating 40 years in advance . But what i love is they arent all saying theyre going to come and destroy the economy and take all these jobs. Theyre not going to destroy the economy, but a higher point of productivity doesnt mean all the jobs say. It might just be the acceleration. People thought when industrialization happened, you took people off the farm, right . Its not necessarily a smooth transition. Larry summers is out there and says onethird of men could be without jobs in 2050 . Thats the really downbeat version of this. This is saying, look, its going to really just reallocate the labor forces. I think of technology here. We use a lot of computers, there are robotically controlled cameras. Its great the robots are taking over. I knew there was Something Different about you. There is a question of who controls the robots. The productivity mail accrue actual of us, but this gets to the whole big question about and i know Larry Summers has been on this a lot, which is the people who own the robots, own the capitol, will get the most of that productivity. Isnt that the same old argument weve been having . Yes. And the people are rising up. You walk out on the street, theres a guy that says the world has treated me terrible i dont know if you saw this guy out if front of the New York Stock Exchange just now. In a way, hes a slightly worse off version of a lot of what were hearing all around the world in developed economies from people whose jobs are becoming less lucrative. Aditi . When i talk to ted to the ct mentioned this is a study that looks at the Business Impact of Ai Technologies. And he likens it to the technology to be transformative in the same way the steam train was or the cell phone was that you have to focus on the long term and the tremendous benefit that can be gained from it. Well see at some point. 500 years from now well know. This is the same thing. You use your hands or you use a loom. Aditi roy there in San Francisco. Time now for a cnbc update with sue herrera. Sue . We begin on a sad note. Fans, friends and teammates say goodbye today to Miami Marlins pitcher jose fernandez. The hearse carrying the remains of the 24yearold was surrounded as it left the marlins ballpark and helded to a church in miami. Fernandez and two of his friends were killed over the weekend in a boating accident. One adult and two students have been injured in a shooting in an Elementary School in townville, South Carolina. Police say the suspended shooter is a teenager in custody. A death reported earlier in the day in the same town is believed to be linked to the shooting. Families of those killed in the 9 11 terror attacks can now legally sue the Saudi Arabian government after congress voted to override president obamas veto of that legislation. Its the first veto override of mr. Obamas presidency. The administration had argued the legislation could open the u. S. Government up to lawsuits for the actions of military Service Members and diplomats overseas, as well as damage americas relationship with saudi arabia. Individuals with connections to the saudi government are alleged to have helped shape the terrorist plot. It seems tim tebow is adjusting to life away from football just fine, thank you. He hit a home run in his first professional at bat. With the Mets Instructional League down in florida, tebow signed a minor deal with the mets just last month. Thats your news up to date. Kelly, back to you. Ce ojo john stumpf gives ba money earned to wells fargo. Plus, 18 states asking the federal government to improve their Cyber Security for the election. In the midst of hack attacks, see whats being done to make sure hackers dont change the results of the upcoming president ial election. Thats still to come on the closing bell. Its me, arty come see what i collected from the creative galaxy in my idea box. Would you help me make art . Each one of our journeys keeps us young hey, i have an idea well never get older. Arty go be amazing amazing announcer give your Cardboard Box another life. Welcome back. The election is now just 40 days away. Its hard to believe. Some states are calling on Homeland Security to help protect their election systems from hackers. Eamon javers has more. Theyre talking about the threat of hacking into the election system. Speaking at an event in washington, d. C. Today, he said its up to the russians to figure out what they might be up to here, that the russians have a history of elaborate Cyber Operations and also elaborate efforts to involve themselves in other countries elections, but this year its the cias job to figure out whats going on. What we do at the cia is figure out companies abilities, look at their intent, look at the things theyve done in the past and determine whether something that certainly looks like a duck, smells like a duck and flies like a duck, whether its a duck or not. He didnt say whether it was a duck or not in this particular case, kelly, but we also heard from james comey, head of the fbi, earlier today. Heres what he had to say. Any hacking in connection with this nations election system is something we take extraordinarily seriously, the whole of government. Its sgt fomething the fbi is s spending a lot of time on. Agencies here in washington certainly sounding the alarm today. Its not really clear exactly whats going on, whether anybody in the u. S. Government will name the russians by name as being behind these particular tacks, but anything this close to the election has people wary going into the election. Its extremely unsettling. The Cambridge Cyber summit partnered with the aspen institute. Some breaking news from cleveland. Thank you very much. At the last fed meeting, her first comment since that meeting, its appropriate to raise Interest Rates. She says economic progress has been made on the federal reserves Monetary Policy goals and said raising Interest Rates can prolong the expansion, and shes concerned over the risk of waiting too long to hike, including the idea that the fed if it doesnt get out of these difficult, complicated things that its done since the crisis, that if it doesnt exit well, they may never be able to use them again. Fears over brexit and foreign weakness have subsided, miss mester said. The economy has been resilient to shock. Her prediction is they will go around 2 and stocks will remain at the 5 level. In downturns on the economy, investment is weak, productivity is weak and capex also poses a risk to growth. Thats the comments from mester. Whatever those weaknesses, kelly, she thinks its still enough for the feds to hike that point. Youll be up watching my exclusive interview with esther george, the fed president. Stay right there. What do you guys think . John williams with the San Francisco fed made some points. Exactly. Theyre kind of rating where they stand. Its basically that camp within the fed, nonvoters some of them. I think its building up to the same kind of message which is, keep your eye on november december. The markets had an interesting little flurry. The dow popped a little bit. After janet yellen in congress was asked something about it, all she really did was reiterate the current stance. I guess one thing that worries me a little bit, and ive heard this from John Williams as well, is this idea we need to raise Interest Rates because we need to reload the ammunition for when things go wrong. I just feel like i would rather you hear, well, things are going very well, the 25 basis points wont make a difference to the economy, the economy will be just fine rather than, i have to reload because something really hairy is coming down the pipe. That always worries me. I think it was geitner and dalio saying they werent sure about that argument. The counter to that argument is why would you create a more difficult Economic Situation in your attempt to get ammunition so you could fight the next recession . In other words, dont create the recession in order to have ammunition to fight a recession. It should be appropriate to the time, and one of the questions were getting, kelly, the big debate in congress at the testimony of yellen is are the feds keeping rates low for political reasons . And the other side of the argument is rates are low because the economy is weak. And then you get the other side of that which is, why would you raise Interest Rates if the economy is weak and the republican side as well, yet are you arguing for higher rates . I dont think, steve, its not just that theyre saying, we have to reload the ammunition for when there is a recession. But also the longer rates are here, John Williams would say. The greater excesses have a chance to get out. Thats a very good reason and thats the reason thats. He. Hes looking at the book of the banks and looking at the activities and saying, you know what, these low Interest Rates are causing them to do things. By the way, Charlie Evans had a speech and told them, you should get your tools in place for that kind of environment and kind of warned them on this risk. What was said today about wells fargo, kelly, theyre taking a look at all the banks because of what happened with wells fargo. I will grab a coffee. Latest out of the fed, john far go. Senator Heidi Heitkamp joins us next. Guyhey nicole, happening here . This is my new alert system for whenever anything happens in the market. Kids a natural. But thinkorswim already lets you create custom alerts for all the things that are important to you. Shhh. Alerts on anything at all . Not only that, you can act on that opportunity with just one tap right from the alert. Wow, i guess we dont need the kid anymore. Custom alerts on thinkorswim. Only at td ameritrade. New developments in the wells fargo fake scandal account today, they Just Announced they are issuing 12 sanctions against the bank. It comes the same day john stumpf was forced to give up 40 million from the company. When you say you didnt act quickly enough, the board should have already acted to claw back those salaries. If you had come here and said, the board has clawed back, these are the things were doing, you would be in a lot better position sitting in that chair right now. I will tell you you have not done enough to restore confidence today, and this dialogue will continue with this committee and with the american public. Senator Heidi Heitkamp of north dakota joins us now. Senator, has wells now i dont know if i can say gotten in front of this, but a number of things have now happened since that last day before you return to the hill tomorrow. Some things have happened by them and some things have happened to them. Obviously the california news today is not good for wells. Two class actions filed by employees, some fired for meeting quotas that were fraudulent and others who were fired because they didnt meet quotas. In some ways this is too little too late in terms of the response that we got. Hopefully the response tomorrow to the house more robust, much more forward driven, this is what were going to do. This is an institution with hundreds of thousands of employees in our country. Its a wellregarded and wellrespected institution. This has been a major hit to its reputation, and i think, unfortunately, Crisis Management was not a course that was taught in the upper management of wells fargo, and as a result, they are really playing catchup now. Are you satisfied with the compensation thats been clawed back from the ceo and other top execs here . I hope that they will reexamine as we look at this additional rewards that were given to top management for meeting certain account quotas, and obviously looking at, as i think Elizabeth Warren pointed out, looking at what was, in fact, the growth of compensation for meeting these benchmarks and whether that had any role in their increased stock prices. We still have not heard about the woman who was in charge, whether were going to see clawbacks there. And as the Senate Democratic members today have issued their list of questions, we know that its not just about clawbacks. This is about restoring confidence, but actually looking at how they have internal controls to prevent this from happening and why, even though they knew about this allegedly, and dramatic steps werent taken to rectify this problem, and in fact, it persisted. I think he says hes being clawed back by 19 million. Senator, is the committee doing anything to try and explore whether similar sales practices were prevalent at other institutions, or is it right now focused strictly on what happened at wells . One question i had is was this common practice . Was this isolated . We would be remiss if we didnt start investigating other institutions to see if they have this behavior. So the answer is yes, the committee needs to be involved at that level. We also need to see what we can do to prevent this from happening in the future. When bad things happen in agencies, we have an Inspector General that comes in, we have gao. It seems like it was all an interior response without really a watchdog in the wells operation. Thats very troubling to me. Are you concerned about whether this raises the question of whether wells fargo, or indeed, any other massive institution in this country, are simply too big to manage . I think when we talk about too big to fail, were talking about institutions when theyre managed this way, creates system. They took a. It was very high risk doing what was done and very low economic reward. Thats not management style that i think anyone as share. We have a ways to go where we say were going to start breaking up banks. Im not there yet, and whether we need additional controls so we can, in fact, detect this earlier. Mike had some ideas about combining institutions. North and south dakota with Something Like that. Right away you guys go to that. Thats 4 of the countrys senators right there. Isnt that great . All that common sense coming to washington. Be shower to watch cnbc testimony before the house, services committee. We have a news alert on spotify. According to the ft, spotify is in talks to buy soundcloud. Were talking about spotify, a european musicbased player in sweden, and soundcloud based in germany. It is worth noting that twitter is an investor in soundcloud. We have reached out to both companies and well be sure to tell you what we hear back. But again, spotify in advanced talks to buy soundcloud. There seems to be an industry maturing, right . Weve had a huge proliferation and now it looks like theyre moving. Its really something to make themselves lucrative. We were thinking, what, in the range of 15 billion for spotify . Youve got spotify, pandora, iheart radio. Then youve got people with sirius xm. These guys are kind of going after the same person with a simple business model. Its either prescription or the combination. You do have too many players. Its such a difficult business because of the model. The royalty is model, right . Youre getting. Im still surprised we keep hearingbeef. Exactly. Spoken like a banker. It makes celebrities paparazzi proof. How a new scarf is changing the game for famous people and the photographers that follow them. Next. Who lives here and flies to hong kong, to visit this company that makes smart phones, used by this Vice President , this little kid, oops, and this obstetrician, who works across the street from this man, who creates software. They all have insurance crafted personally for them. Not just coverage, craftsmanship. Not just insured. Chubb insured. But the best place to start is in the forest. Kubo i spy something beginning with. S beetle snow. Kubo no. Beetle snow covered trees. Monkey nothing to do with snow. Narrator head outside to discover incredible animals and beautiful plants that come together to create an unforgettable adventure. Kubo wow narrator so grab your loved ones monkey dont even. Narrator and explore a world of possibilities. Kubo come on, this way. Narrator visit discovertheforest. Org to find the closest forest or park to you. Welcome back. Paris fashion week under way but the next item that is really generating celebrity buzz from hollywood to new york is this. People like cameron diaz and nick jonas sporting the issue invisibility scarf. Lets explain whats happening here. It reflects flash photography and renders the wearer of this scarf or tie essentially paparazzi proof. You can see on the left, mike and i standing taking a normal photo. On the right, exact same pose, one second later with the flash on. They range from 64 tshirt to 462 for the limited Edition Black scarf. The founder of access all brands which makes this scarf joins us. Welcome. Thanks for having me. How did you come up with this idea . I came up with it eight years ago. Im from amsterdam and someone took a photo of me in front of a bike and the reflectors ruined the picture and i thought how cool would it be that i could create something that would ruin the picture. And eight years later, i launched the scarf. Paris hilton seems to love it. I guess the question first of all, it only with flash photography. In other words, for at night off kind of incognito. Yeah, mainly against mobile flash photography so you disappear on the snapchats and instagrams and no more unwanted pictures on facebook. So thats the main intention of the product. Can you design something that works so i can blow up every selfie that someone takes in times square . Eventually, yeah. I guess that would be useful. You walk through times square and you ruin everybodys i was joking i should wear the scarf outside the New York Stock Exchange where tourists are constantly taking selfies. Exactly. 1. 8 billion pictures constantly being shared every day online. And im pretty sure theres a couple pictures on there that people dont want to be or have. So, yeah, thats the first Disruptive Technology within digital content. How many are you selling at this point . Were selling quite a bit. Its good. Its good fun. People really appreciate it. So, yeah, its done well. Thousands, millions . Yeah, its one day hopefully ill go public here. So well see. Have you taken to selling them in clubs . Yeah, im able to license out the product itself, work with a bunch of new u. S. Distributors and with the company is pretty new, right . So im able to, you know, do the inside of interiors like soul house or the government. I could see working in museums. Weve got to go, but what happens if people look at this and say, hey, great idea, im going to do it too . What, create the same product . I wish them the best of luck. Thank you for joining us. Sears hasnt reported a profit in five years but hoping one ridesharing app can turn things around. Can uber come to their rescue . Thats next. Announcer dont let e. Coli mosh with your food. An estimated 3,000 americans die from a foodborne illness each year. So, always separate raw meat from vegetables. Keep your family safe at foodsafety. Gov it begins from the the second were born. Er. Because, healthier doesnt happen all by itself. It needs to be earned every day. Using wellness to keep away illness. And believing a single life can be made better by millions of others. As a Health Services and Innovation Company optum powers modern healthcare by connecting every part of it. So while the world keeps searching for healthier were here to make healthier happen. Welcome back. On the heels of that massive drop in nova va ax, interest cellular down almost 68 after hours. It appears as though they had a lead product candidate that failed the latestage study in schizophrenia. The broader message here, one to tread carefully. A couple billion dollars, market cap, its not necessarily a trivial sized stock. But the business basically hinging on this one drug not yet approv approved. It seems like basically the market is riding this off. A huge and unfortunate decline. Meanwhile, sears announcing its teaming up with an unlikely partner in uber. It will allow uber riders for the loyalty plan, 75 of the Company Sales for the first half of the year. Can uber come to the rescue of this Department Store . No. But i do think they are pinning everything on this membership model. Any little bit in materials of Customer Acquisition probably helps. And for uber, i mean, i almost see it as a rewards program. Okay, fine. Thats the more interesting part. Like you have with your frequent flier card and you get this incredible loyalty. People use them more, they get to travel more. Yeah. In a way, if i had that with uber, i guess i would use more uber. Ive never done a frequent flier program. Yeah, i feel like they leave a lot of on the table. Im not sure. Because these things can get hacked these days. In any case, uber, it might be really interesting as a way of encouraging. Basically assemble a lot of these types of perks, yes. Rob, mike, thank you guys for joining us this afternoon on closing bell. That does it for us, and fast money begins right now. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys times square, im melissa lee. Your traders are tim seymour, karen finerman, brian and guy adami. Stocks away from a high. A strange anomaly telling investors to ring the register. Why you should be concerned. And one trader betting 60 million bucks on one of wall streets least loved stocks. Well tell why they did it. And did you catch last weeks big Football Game . Probably not, because nfl ratings have been sacked this year. Well tell you whats behind the trend and what stocks could get sacked as well. First, one crude