That conference. A lot of optimism there. And well discuss why hundreds of millions of dollars are going into Alzheimers Research it still may not be enough to make any real progress. Also along musk discussing the latest spacex rocket failure right now. Well bring you the latest headlines soon as we get them. We start with our closing bell exchange. The major averages are in record territory. Territory. Mr. Willis whats moving this market today . This is another one of those days where we are hitting singles. No home runs but enough to put us over the top for the s p and the nasdaq in record territory today. The big cap, particularly the nasdaq are the story. Inside that story, you need to take a look at some of the rotation that we are seeing. Still taking profits out of the russell 2000. Some of the Health Care Stocks seeing profittaking. We are seeing money rotate into the consumer discretionary, particularly the restaurants strong today. Chinese stocks trade here also showing strength. Take a look at yum. Great performance. The ugly sector if you will is the commodities complex. You talk about gold. Look at oil. There is selling in different sectors. The bullard story saying there was a real chance they could raise rates in september. Yet most people would accept a selloff in the equities market. We didnt get one. I think that trade is built in. I think the commodities is the spotlight today. Not just gold. Oil trading below 50 a barrel. What message are you getting . Something about inflation, global growth, strong dollar . I think its a combination of those. I think its a function of china not growing all that quickly relative to where its been. You had a flat year. Werent even up 4 on the s p. You had pe expansion in the market now for about four years. That is likely to stop Going Forward with the s p trading 19 times earnings. What is going to drive earnings from this point forward. The s p had an earnings contraction quarter over quarter the last two quarters. They had margin contraction. The only Thing Holding up the market has been aggregate dividend growth. Between now and the end of the year expect more choppiness in the market. Spanish elections. Rick what is getting your attention today . Sometimes there are big main entrees with marketmoving news stories. Sometimes you eat the leftovers. It seems there isnt any main driver but the residual of the china story continues to resonate with many traders. The debate on this floor, are commodities the canary in the Global Economic coal mine . That seems to be the logical answer. We have to continue to wait and see. Whether its the uk and look how great the pound is doing against the euro or Dollar Strength against a variety of all the main currencies it certainly seems as though the ultimate notion of a strong currency seems to be moving the markets up today. Gold. Lets get to Jackie Deangelis at the nymex. Not only gold but the miners getting hit big time. Barrick gold down 15 . Goldcorp 11 . What is going on there . It was a rough day. We did finish about recouping half the losses we saw last night. Down 27, 1106 is where gold finished the day. What traders are saying. This is a bunch of things that are happening at the same time. First would be the strength in the dollar. That is what is pressuring all commodities at this point. Of course the metal specifically and gold, as well. Its also a rotation out of asset classes. Investors are getting rid of their gold position because there are better places they could be investing their money. At the same time we are looking at gold it hasnt been a safe haven asset for quite some time. If you are in the camp that believes the fed is going to hike interest rates, selling pressure will probably continue from there. Then of course remember if you are trading gold as an inflation hedge, that is not a good bet right now either. All these circumstances put together is probably what drove gold down. Traders are telling me technically speaking 1,100 a key psychological level. They think the downward bias remains in golds, metals and all the commodities. You mentioned oil, as well. Jackie thanks very much. Ive been joking about gold. We cant decide if its a candy or breath mint. Is it a hedge or risk asset . Very clever. Thank you. Ben, do you have a view on gold . Hedge against wealth. Would you look at the miners . For a trade, absolutely. Long term you have to look and this goes back to the idea of buying an entire sector i dont think is a profitable trade. You need to find out the exact cost and production for the individual miners and how well they can manage their profitability how far forward they sold their gold prices. I think going back to earlier, if you remove oil from the s p as far as its impact on the earnings and contraction, we have a different market. That is not comfortable to take out a large sector. When oil will be a benefit, the lower cost of oil will be its own natural stimulus package to the world economy. If we get good earnings from apple tomorrow actually S P Technology earnings could be positive also bucking the overall trend what do you see in terms of etf activity around gold and other commodities and other macro stories right now . Hedged europe was very strong. This weekend barrons screamed buy japan. If you are looking at a place where you have Earnings GrowthMargin Expansion and attractive evaluations and currency story on your side that is the whole story. That is one place people turn to. Is the role of gold changing . I traded the most famous high of gold in the pits in chicago in 1981 when it traded front month futures to around 865. Those are the volcker years when he started to slay inflation and salahi interest rates, yet gold topped out in 81 when you had the highest inflation and it went down for a decade. Golds been a confusing commodity for a long time. I wait for something in the 900 camp. I think there is true value under 1,000. I think thats why miners are nervous. I think they are ever bit as interested to see where the futures move to and physical move to first. Well see if it breaks 800. Overnight it reached as low as 1080. Thank you, gentlemen. Two of the big movers otherwise are paypal and ebay. Paypals first trading day as a publically traded company. Its own entity after being spun off from ebay. Big divorce. John fortt caught up with ebays new ceo on squawk alley and asked about the company split. We are slighted at the success of paypal a lot of us worked very hard to make paypal successful. Its a proud day to see them now an independent company doing so well. Now our focus is on building ebay. This is an incredibly strong business. This is a business that added almost 70 million years in the last four years. Incredible cash flow and Balance Sheet. Grounded in a real sense of purpose. The fact that paypal is doing great and now ebay is doing great, its an exciting moment for the ebay family. Joining us for more on what the spinoff means for both companies, jamie friedman. You are positive on both these companies, arent you . Thats right. I have a positive rating on paypal with a 55 price target. I position it as the worst house in the best neighborhood. When elon musk founded paypal 20 years ago, he envisioned it to be the leader in payments online. That is what they emerged, payments online is the best part of payments. Paypal has the most market share. I think the world is theirs. That is what i was going to ask. It seems it is facing competition from everywhere including visa. Competition is tough. There is a lot of new antititanics. Master pass from master cart. 16 ecommerce transactions are paid with paypal. Its about 15 market share. My anticipation is they pivot into adjacent markets. If they get 1 of the offline market, it triples the volume of the company. Theres a lot of optionality in this investment. What do you think apple pays recent launch will do to all this . Our assumption is apple pay will be significant. I assume they will take market share. I dont think paypals market share is sustainable in 16 transactions. Thats not the assumption but the point is there are a lot of adjacent markets that paypal cant access. They can access offline. A small penetration of any of those is enough to make this investment profitable. I did read a bearish note on paypal. One saying its unclear where paypal goes in a mobilefirst world. And looking at the margins on their mobile business relative to their strengths right now. I think hes looking at the wrong denominator. If you look only at online commerce, it may be that paypal has a hard time sustaining this share. Like your prior speaker was saying, they have 160 million accounts on file. Is that a lot or a little . That is the third most behind visa and mastercard and more than american express. If they can get a little bit of volume in adjacent markets from those accounts on file its enough to go a long way. All right. Jamie friedman good to see you. Thank you. Heading to the close here 47 minutes left in the trading session. Everybody is positive. Right now the s p is in record territory. Any positive close for the nasdaq is also record territory today. The level you want to watch on the s p is 2130. 82. That is the closing record trade. Well keep an eye on that. As we turn higher into the close. Ibm posting earnings after the bell. Well run through the numbers for big blue and what it needs to beat to deliver its results as soon as they hit the tape. When we come back fred hassan is with us. Hell weigh in on the battle to treat alzheimers. Several drugs are showing promise in testing these days. Bring us your aching and sleep deprived. Bring us those who want to feel well rested. Aleve pm. The only one to combine a sleep aid. Plus the 12 hour pain relieving strength of aleve. Be a morning person again, with aleve pm. Hi my name is tom. Im raph. My name is anne. Im one of the real live attorneys you can talk to through legalzoom. Dont let unanswered legal questions hold you up, because were here were here and weve got your back. Legalzoom. Legal help is here. For over 60,000 california foster children, having Necessary School supplies can mean the difference between success and failure. The day i start, im already behind. I never know what im gonna need. New school new classes, new kids. Its hard starting over. To help, sleep train is collecting School Supplies for local foster children. Bring your gift to any sleep train and help a foster child start the school year right. Not everyone can be a Foster Parent but anyone can help a foster child. Slightly positive day for the major averages on wall street. S p in record territory right now. So is the nasdaq. Weve had some acquisitions today. There was the Lockheed Martin acquisition. Also vivint solar surging after agreeing to be acquired by sunedison. A lot of action in these stocks. Solar city up sharply as investors bet it could be a candidate for merger and takeover. Sunedison is the biggest holding. Im surprised there hasnt been more consolidation. Maybe its coming. 4,000 scientists are in d. C. On a gathering of alzheimers to find some cure. Meg terrell joins us with fred hassan former scheringplough ceo. First the numbers on alzheimers are staggering. This will be a huge market. It will be a huge problem if these drugs dont work. Right now about 5 million americans have alzheimers and that could triple by 2050. New numbers saying 28 million babe baby boomers could get alzheimers. Finally we have drugs in the later stage of development. Its been a tremendously tricky area and they have to bear out in the later stage studies. What have we found in terms of breakthroughs on the cause . And soerly detection . The biggest disappointment is we havent made as much progress in Early Detection as we would have liked. The best way to manage this condition is to predict those people who might get alzheimers. Lets look at a group of people 70 years old. There is a 15 chance that they are going to get alzheimers the next five to ten years. If you could find out who those people are, then you can get them access to the new drugs. Can do you that with a dna test . We dont know enough why it happened. Alzheimers like Breast Cancer might be a bunch of diseases. We need to do more on the genomics frontier. A lot is happening, but we need to do more. There is a lot of excitement with alzheimers. People are saying if you scoop that little bit of analoid out of the brain, maybe the cognitive function does improve. That is key when you look at the early stage drugs biogen and lilly have. Biogen everybody was excited about their phase 1b data. Well get more looks wednesday. Lilly moved its drug which looked like it failed in an earlier study. Now they reparsed that data. The patients some of them might not have had alzheimers. That is why people think biogen was successful. They determined the patients had the plaques in the brain. That is going into phase three. Federal dollars for research. How much now for alzheimers . 560 million. How much for cancer . More than 5 billion. Those are apples and oranges. Cancer is a horrible problem. You were comparing it to hiv and how much strides we made. The hiv mentality started in the mid 80s. Such a horrible problem and in two decades it became a manageable condition. We need to have a war on alzheimers mentality here. A sense of urgency. How do you do that . Autism folks, Autism Speaks and other foundations have done it a great job making it part of the public conversation. We are not doing it with alzheimers. Its a moral imperative because the patients cant speak for themselves. Thats why we as society need to speak for the payings here and do more. Half a billion is not much. Will we find a cure in our lifetime . We may find a cure. I believe well find ways to prevent, halt and to some extent reverse the disease. Hopefully find a cure. That would be wonderful. Have a trip to d. C. Thank you. 40 minutes to go before the closing bell. Enough gains to put the s p in record close territory as well as nasdaq. Technology and Health Care Continue to be the standout performers. We hit a single to win the game. Narrow ranges. Trying to oneup Silicon Valley. University of michigan opening a brandnew 23acre mini metropolis. Can we go there and eat popcorn and watch these go . Better we sent phil lebeau. These two oil rigs look the same. Can you tell what makes them so different . Did you hear that sound . Of course you didnt. Youre not using ge Software Like the rig on the right. Its listening and learning how to prevent equipment failures, predict maintenance needs, and avoid problems before they happen. You dont even need a cerebral cortex to understand which is better. Now, two things that are exactly the same have never been more different. Ge software. Get connected. Get insights. Get optimized. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep them all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberyy apple scones smell about done. Ahh, youre good. I like to bake. With at t get up to 400 dollars in total savings on tools to manage your business. If you build it they will drive. With apologies to field of dreams. That is exactly what the university of michigan is hoping will happen at this new 23acre mini metropolis designed to test Autonomous Vehicles. Its an opportunity to show Silicon Valley it has nothing on motor city and its surrounding areas. A statement they are making. Phil lebeau live for us in ann arbor, michigan with all the details. Are you having fun out there . Reporter its been an interesting day. Im hoping in the future they might offer rides to the public. Im going to bring bill here since he is such a skeptic when it comes to selfdriving vehicles and whether or not they are the wave of the future. Mcity opens today saying look we are going to be testing smart vehicle technology. Vehicletovehicle technology, is the future. This is the way the industry is moving. Automakers, tech firms will be working and doing research here. Does the public want selfdriving vehicles . The university of michigans Transportation Research institute did a survey of 505 people. They found that 43 said they have no interest in selfdriving cars. Separately, 35 are concerned about riding in a fully autonomous drive car. If you fall into one of those two groups these vehicles are coming. By 2016 well have a number of models on the road with auto pilot features. By 2020 that its best estimate, you will start to see fully Autonomous Vehicles driving at least in highway conditions. Perhaps by 2025 maybe closer to 2030 you will see urban fully autonomous drive vehicles. Mobile eye makes so much of the technology. One company part of this cooperative number of companies is delphi. Delphi is making a lot of this technology, as well. Has not enjoyed the same horizon as mobile eye but has done better than other firms in the tech space. M. City is open. Will be interesting to see what they develop over the next couple of years. Bill, maybe if you are nice they might let you come here. You dont buy it would be safer . No. I dont know why you think im skeptical. I was making fun of the concept of a themepark Like Research center. In california, they are putting them on the highways out there. Is this why they are putting them in a controlled environment so that doesnt happen . They believe they can test a number of different environments quicker. You can go from urban driving to highway driving. There is a rural landscape. They can test a number of different environments and different scenarios very quickly. Thats why they built this space here with so many different scenarios to test out. That doesnt mean we wont see the end of on the road testing. I wonder also if it would shape regulation. Who knows what well need once these actually go on the roads . Are the street signs going to be sufficient . Will we need street signs if its electronically programmed . Vehicletoinfrastructure is a very big part of this. You will start to see smart stop signs, they will alert yo