Getting too expensive. Well, weve got a money manager who thinks theres still room to run. Hell make his case, coming up. And disney still one of the big dow winners this year so far. We will be live at the companys socalled d23 expo to look at how the force behind the Star Wars Franchise could affect that stock. Jane wells, who else but jane wells, is on site for us. Our own princess lea. And its the company the New York Post said provided something close to legal Insider Trading. The ceo of media radar, and you may remember his name, will tell us how his ad tracking software is now helping hedge funds. Im very excited to talk to him. I may have interviewed him back in the day. Would that we had the footage. Its a story, those of you who have been watching the market for a number of years will remember it. Its a great story. First, lets start with Jackie Deangelis at the nymex with these gasoline prices spiking in parse of the midwest despite this slide in crude oil. Weve been talking about this. A 20 slide in crude oil prices. Were looking for that three handle, yet people are outraged because their gas prices are going up. According to aaa, the national average, 2. 65, its up seven in two days alone. We had a bp refinery problem in indiana, and that is whats sending prices in the midwest up. Bill, if you think youre in trouble in new jersey, if you were in chicago, up 21 cents overnight, 3. 22. Michigan, up 38 cents in two days. Ohio, up 36 cents in two days. The issue here is a refinery problem. You certainly cant predict these. When they happen, they happen. And it could take a month or so, the company says, to be able to work through this. There is a Silver Lining at the end of the tunnel, however. If crude continues to go down, well see demand slowly come off as the summer driving season ends. And also, we make that switch from the summer driving blend, which is more expensive, to the winter blend. So were still looking at 2. 50 as the national average, some time during the fall, maybe 2 by the end of the year, but we could experience some pain as we get there. I will also say this. Products and crude oil have been trading together for the last few months. So it could be a chicken and egg problem right now. Some of the reason that we saw a little support for crude today could be because of what we see happening with our gasoline, guys. Jackie, thank you very much. Joining us for more on this refinery outage thats actually in whiting, indiana, and the impact its having on gasoline prices, patrick dahon from gasbuddy. Com. I know ill get a lot of good enough from industry watchers, but it always seems like this happens when gasoline prices are going lower. Suddenly, a refinery has a problem, they have to shut it down and fix it for a month here. Am i being too cynical, patrick . I think so, but i think theres probably 99. 7 of motorists really enjoy your take there. And thats what theyve been feeling as well. Obviously, youre looking at a period where demand is very high. Inventories in the midwest now at their lowest of the year. And out of nowhere, whiting goes down. I think youre seeing, certainly, a response in regards to supply and demand, but just a scare out of nowhere that this would happen. And of course, to make it worse, i dont think a whole lot of media is recovering that marathons refinery in robinson, illinois, had planned refinery maintenance, now it is down. I think thats probably some of the response in price that were seeing accounts for that. Patrick, help me skeptical as well here. You know, were talking about oil prices at their lowest since the financial crisis. Gasoline prices in this country arent down anywhere near as much as they otherwise should be. Those margins that these refiners and a lot of these bigger conglomerates are making off this are huge. And one of the only levers that they have to pull in this backdrop. I mean, explain to us, very carefully, why it actually is that the gas prices still are so much higher relative to the oil price at this moment. Well, you can have all the oil in the world, but if theres nobody able to refine it or if theres some scarcity at the refining level, thats the huge bottleneck here. Its the spigot is closed. You put in oil, well, in this case, theres nothing coming out of bp, well, very little. And i think the market is very scared by the possibility of demand exceeding supply and thats the kind of panic trading that the market is engaged in. Now, the good news is that for chicago c bob, we are starting to see some relief. C bobs spot in chicago is down 20 cents today, but nothing for our bob in chicago. So those in chicago proper, where they use reformulated, probably not much relief. But weve seen these types of maneuvers before, when theres a huge unexpected problem. I think a lot of it is just the psyche of this refinery being the seventh largest in the country going down. And now what youre seeing is folks are backing off their positions. You had a lot of buying interests. Now things are finally cooling down. Before we let you go, so, yes, were seeing this spike in the midwest. Are we going to see a Ripple Effect . Will that translate into higher prices, where they otherwise might have been going lower in other parts of the country as well . Not to any significant degree. I think youll see gulf coast refineries sent material north that will take a few weeks, but i dont expect to see that pull gulf coast prices up to a significant degree at all. Its interesting, real quick, patrick, we have the news today about this u. S. mexico oil swap that would bring more heavy crude into this country to refine. How is that going to, if it does, exacerbate the situation . Well, it may not make it worse. Youre just talking about a play on heavier lower quality crude oils. And right now, i think the interesting part is, with Canadian Crude Oil obviously depressed, just because of whiting, you know, the refining sector looks very strong right now. How many refineries is a part of this whole whiting thing are going to look at modernizing or upgrading even further, even Goldman Sachs upgrading the refining sector or many refineries looking very healthy now. So maybe this is something that well look at in the future, more upgrades coming. We hope thats where the dollars are going to, investment. Thank you so much, patrick, appreciate you explaining this one to us. He really does know what were talking about there. Lets get to our Closing Bell Exchange this friday. Tom lie dan is with us. So is peter costa from empire institutions. And rick santelli. Peter costa, youre the lucky one that gets to explain to us. Make sense of this volatile week. Kind of quiet today, was a little bit yesterday, but very volatile early in the week. Whats going on . It was obviously all about china. And i think we had mentioned that when everyone was worried about greece, and i might have been one of the few guys on the air who had said a bigger issue is china, its not greece, its china. And i think it came through this week. You know, youll see the yuan raised a up a little bit this morning, which you will expect. And markets always going to equilibrium. And i think that part of the equation will slowly be mitigated and i think thats what happened yesterday and today. Tom, war you watching in this market . How much of an impact is china relative to oil and where equities go from here . It absolutely is. And i think what peter is saying is that im 100 right. Weve been looking at flows in the etf marketplace and a lot of smart money has been coming into chinarelated etfs off this recent collection. Most recently, the deutsche trackers, hrsr has seen a lot of money. But the key is, and i think the magic bullet is, theres a company, csop, thats going to partner with msci, to come up th an ashares currency hedge etf. So this type of etf will make money when ashare market goes up. And the u. N. Goes down. I think thats perfect, as we saw bob pisani in the last segment talking about the money going into currenciy hedge etfs, very popular, as currencies really are becoming an asset class for investors. Hey, rick, of the markets you follow, after this kind of week, whats your take away . Whats the message to you right now . Well, i think the takeaway is stick with Foreign Exchange. I find it so fascinating the dollar index got walloped this week, down over a penny, because the euro is up large. But the yen has closed to change against the dollar and the dollar is king at least for the week against the yuan. So there are a lot of cross flows here, and trying to get a handle on this recalibration going on is difficult when you look at the primary sources, just the Foreign Exchange markets, trying to handicap this as it filters through on the price of various goods being traded around the globe is something that will be with us for a while. And i still contend that, you know, as peter was talking about, the markets will get back to normal, theyll digest this, i dont disagree. But we still dont acknowledge that the room is filled with natural gas and weve gotten used to it. So hes saying the markets will get used to the manipulation by the chinese under the head that its normalization and liberalization, but we all know that the timing saek e ining sp of why they did it. And rise to the macro issue, they need to do it. They immediate to continue to put that extra chicken o the table, to keep those in the middle class working and happy in a society that isnt going to have social backlash. And i think these issues with china are going to be around for a while. The Second Market i want to reference is, of course, the long end of the curve, tenyear and 30year yields are up slightly on the week. And the 30year did hold its settlement for 2014. So even though, i acknowledge weakness brings rates down, we might have hit a point where that dynamic, until the september meeting, is sort of glide path about where it is now. And meanwhile, peter, the data wasnt that bad. Industrial production in the u. S. This morning, the ppi was somewhat firm. Is that why the market here, the Interest Rates are holding up a little bit . I think so. You know, i dont think it was unexpected. And you know, but this has been weve been in a period probably for the last five or six months, where weve had, you know, youll have one day of some positive economic news, and come monday, there might be something thats on the negative side. So its that, you know, that backward, back and forth, of whats good, whats bad. You know, the fed is still looking at all of this and they still are not getting i dont think theyre getting a true reading on the economy yet. And i think well probably be in this phase of good news bad news for several more months going forward. So to me, you know, we had talked about when we think the fed is going to raise rates. I think its going to be next year. I dont think theres anything in there. I think they get the good news, which makes them want to do something, and theres bad news right behind it. And then they say, you know what, lets back away from that idea a little bit and see what goes down next month. By the way, very quickly, tom, before we go, we got word late today that mostly outflows out of equity funds in this country, and most of that was out of actively managed funds, while money was going into piffly managed index funds. So what do you make of what the average u. S. Investor is doing with the stock market right now . Yeah, bill, youre playing my tune. I tell you, its more of the same, its transparency, its low cost, its tax efficiency. And its not paying a manager whos not performing. And unfortunately, there are a lot of big Mutual Fund Companies who have made billions of dollars on wall street, that now the gig is up. Money is shifting over to index investing, because investors have more trust in their type of management. Now, again, active management, in a few cases, there are some good managers out there. And we want to make sure we recommend that. But, for the most part, if youre not performing along with your benchmarks, you cant command the high fees that some of them are getting today. Well ask john calamos next hour, got him joining the program, hedge fund manager. Thanks, guys. Have a good weekend. About 45 minutes to go into the close. The dow is up about 66 points. Keeping an eye on some breakeven levels for the week, were safely above that for the dow. Anyway, gains up about a third of a percent. The s p up 7 and the nasdaq, 14. Up next, the ishares is nasdaq biotech etf falling for the third week in the last four, but weve got a biotech bull who says that there are still some good opportunities to buy in biotech right now. Well talk about that, coming up. Also ahead, were taking you to disneys biggest fan event ever, where star wars followers eagerly release the force awakens in december. Jane wells will be getting the latest on disneys hottest new property, thats coming up. At ally bank no branches equals great rates. Its a fact. Kind of like shopping hungry equals overshopping. 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. At ally bank no branches equalsits a fact. Kind of like mute buttons equal danger. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. Everyone is looking for ways while to cut expenses. S unique, and thats where pg es Online BusinessEnergy Checkup tool can really help. You can use it to track your Actual Energy use. Find rebates that make equipment upgrades more affordable. Even develop a Customized Energy plan for your company. Think of it as a way to take more control over your operating costs. And yet another Energy Saving opportunity from pg e. Find new ways to save energy and money with pg es Business Energy checkup. Welcome back. The major averages are trading higher, but Micron Technology is lower after a Conference Call with analysts where the chipmaker forecast higher Capital Expenditures for 2016, higher than analysts had been expecting. Microns outlook topping out at 5. 8 billion. That stock today, as you can see, down 3. 75 . Turning to biotech now, its been red hot this year, up almost 20 . This is after last year, we had those concerns about a bubble. Anyway, eli lillys ceo was on squawk box earlier this morning, giving his valuation on the space. Were hot on the trail of pursuing a biotech acquisition, and i think a lot of these properties are too expensive for my taste. So, is biotech too expensive right now . Lets bring in our own meg terrell, who follows that industry, and Jason Kolbert from maxen group who disagrees with eli lillys ceo. You i guess its all relative terms, but a ceo, he wants to buy at a good price that he can make money down the road. What about for an investor wanting to buy stocks right now, jason . Its a great question. Listen, i had the same thinking when i looked at alexion in 2007. I saw a 4 billion market cap and meager sales and thought it was overvalued. But if you look at the market cap of alexion today, its 42 billion. So you can make the assessment that you want to be involved in some of the core t companies and the cancer amino therapy companies, and they look expensive, but when you compare the size of the market, you have to understand theyre cheap. I think gilead learned this lesson when they made the acquisition of pharmasat for 11 billion, it looked very expensive, but it looks like theyll completely pay that off in the first year. I think its all relative to your position. Thats an interesting point, meg, and i guess thats what some of these companies would say in their defense, or maybe they are sounding like eli lilly and scratching their heads at all of these valuations. Weve heard ceos say that for a couple of years now. Of course, they would like biotechs to be cheaper so they can buy them at lower prices. But biotech have outperformed the market for several years, and people would like that to continue. But there are a couple things that are making people a little bit worried. Of course its scary to bet against biotech when you have a run like we had for the last five years, but people say if fed Interest Rates start to go up later this year, if they raise the cost of capital, that could start to weigh on biotech valuations. Thats something people are watching very closely. Credit suisse came out with a very interesting note, and weve mapped the fed funds target rate back to 2005. Credit suisse says they are inversely proportionate, and you can kind of see that. The biotech started to come up as Interest Rates came down. Folks are a little worry if Interest Rates start to come up, they could weigh on biotech. Theres another thing here, theres just not so many catalysts in terms of medical meetings over the summer, so things could be slowing down a little bit there. As we look towards 2016, going into the president ial election, there could be increasing focuses, as there already have been, on those high prices of drugs. This could be something that weighs on the sector as well. Jason, we had the head of glx Goldman Sachs here yesterday, if the company feels like the company theyre buying can help transform a technology, within a industry, you know, day do it for reasons other than just price right now. Theyre looking strategically at what it can do. What about in biotech. Is that what youre seeing as well . Thats exactly what were seeing. We see Companies Like celgene making fantastic optional agreements, recently with the cell therapy company, mesoblast that gives them the option of first refusal. And we continue to see those deals. Just yes