Interview with investing legend Julian Robertson of the tiger funds. What are his best investments right now . Plus, he tells us who he thinks the best investor alive is today. And, then amazon launching a Music Service today. But wall street seemingly unimpressed. The stock taking it on the chin, down about 17 year to date. Our special guest bob olsteen is not surprised. Hes been a bear on amazon for a long time now and says it is about to go from bad to worse. Bob olstein will tell us that and more exclusive in about 30 minutes time. Right now in the markets heading into the close, major indexes heading towards their lows of the session. Dow jones industrial average shedding 122 points this hour. Take a look over at the nasdaq which is off by about 42, under 4,300. S p 500 shedding about 15, at 1,928. Heather hughes, jim lowell, peter anderson, and from chicago, our very own Rick Santelli. Welcome, one and all. Heather, let me start with you. Weve been spending a lot of the day focusing on whats going on in europe. I dont mean to minimize it in the least, well talk about it in a second. But another number out today, retail sales. And it was not particularly favorable. How worrisome is that and what and obviously a lot of the Retail Stocks have been off. Youre right, there is that strong core laying between retail sales. Positive correlation. And we tale tail stocks. Right . Most of the dk or many of the Retail Stocks right now are in bear market territory still down 20 from the highs on the year. You know what i think may be impacting the consumer . Gas prices. The price at the pump. As we know, oil prices are rising not just due to geopolitical tensions in iraq, but crude and fuel are rising and that may have an impact on consumers. Given the escalation potential in iraq, it is amazing markets arent doing worse here. Is that right . Absolutely. The reality on the ground is that first of all inside that retail sales number there was a Silver Lining and im sure heather noted it as well. Restoration hardware up over 10 on the day. Were seeing a lot of consumers buying bigticket items inside their homes. Thats actually a fairly bullish times when consumers allocate their assets reasonably well. But that set against the global backdrop, it certainly looks as though youre facing some significant headwinds. If we see owl prices pick up more than 20 a barrel, that will have an impact, not just on the consumer, but on Global Recovery overall. Were talking about picking up by 2 today. People are making a lot about that, as they should. But 20 do you think thats possible here . 20 increase in a barrel of oil . Well have to see how the situation on the ground, either diminishes or escalates. Weve definitely seen Airline Stocks take it on the chin today. Theyre certainly not looking all that where do you think the high is for oil and what would that do to a consumer as measured by retail sales whos already pulling in his or her horns . I think i do expect some choppiness in the oil price. These things very rarely get better immediately. Theres likely to be continued tension in iraq. Obviously if actual production is impaired significantly and for a long period of time thats going to have an impact on oil. We see a lot of these price shocks. We saw it in the ukraine in energy, we saw it in egypt, in libya. We keep seeing shortterm impacts on potential supplies of oil. They go away in the market and kind of the worst case fears of sustained 120 a barrel just dont happen. It is something to watch but right now i think you got to be thinking it will probably turn out the way the other ones have. I imagine there are hedge funds that are long the airline space. Remember, this is an entire sector, an industry people had stayed away from for years, have finally piled in to. Weve seen a tremendous runup. Today were certainly giving some of that back. Yeah, we certainly are. I think Going Forward what you will see, hedge funds are really trying to make up for the, frankly, horrible returns theyve had in the past several years, kelly, so they are really going to take a look at the airlines because they are really going to be starting to probably short those. Theyre very shortside, no pun intended. But with that view, you wont see a lot of long positions being built in airlines right now. Im not necessarily agreeing with that, but in order to play this hedge fund roll, thats exactly what people are doing there. Were seeing shortterm performance, any kind of event risk like that, they are poubsing on. And i think thats overall adding to at least some of this volatility. The vix is really low, so even when we do have this kind of activity in the airlines, it is going to take a heck of a lot pushing on just general equities to bring that vix up to levels that we think is appropriate right now. What volatility . It is a little higher today but it certainly at some multiyear lows. Whats the bond market been telling you, Rick Santelli . The places to watch most is bond. Is there anything in the action over the past several days thats signaling something to you . I note earlier today you gave the auction an aplus. We had had good demand for the 30year, unlike the 10year yesterday. If you look at marchs retail sales, lets just look at the generic headline number. It was 1. 5 in march. In april, it was revised from. 1 to. 5 . Today,. 3 . Sequentially, thats the field that we came in with in terms of the landscape. Then we see what happens. Look at these charts, tyler. At exactly 1 00 eastern on that strong option you were just talking about, that when we really saw rates drop. I understand there is a lot of geopolitics but theres also a lot of gamesmanship going on trying to make it anything but the economy. With regard to the geopolitics, ukraine didnt really stack up and i dont understand the conventional wisdom with dictating how important it may or may not be. Why did it wait until 1 00 eastern to really get going . I think that the bond market is right for outside forces to be affected. Not so much to push the yields up. If you look at the control group of retail sales which feed into the gdp report it is still running up 5 annualized. I take your point we have to stare straight in the face of whatever weakness there might be in the economy but look again, talking about a 1 00 p. M. Deepening the selloff, why didnt it do that at 8 30 after the chief Economic Data . It had 3 1 2, 4 hours to digest before that. Consumers continue to buy not just small cars but luxury cars. Not just small trucks, but big, heavypriced trucks. They continue to buy homes, albeit at a slightly slower rate. There may be a top hatch there. But you look inside even todays weaker than expected retail s e numbers theyre not doing as reasonably well as they were two months ago. Theyre looking better than i think youre reflecting. But not better than three months ago. The Health Care Point is a big one. Heather, i hear you trying to jump in. Consumer discretionary is at the back of the pack this year and energy is leading the way. Consumers i think last years withiners have become this years losers. Dont see that trend reversing any time soon. You alluded to Consumer Discretionary. I think we still have a lot of the Retail Stocks, can you find them within the Consumer Discretionary sector. It is the only red economic sector. 1 out of 10 economic sectors thats down year to date right now. I dont think without any uptick in growth that will you see that trend reverse any time soon. Eric, everybody was saying that when the spring came around and the warmer weather came around retail sales were going to pick up and it didnt. Well, first of all, month to month is volatile as all getout. 1. 5 , 5 , and. 3 is a good quarter worth of spending. We just expect consumers to actually continue to spend at roughly the same levels theyve been spending at the expansion which will drive Economic Growth positively. Today in d. C. , torrential downpours, still massive flooding on the weather front. Its coming our way then, soo. Thanks, folks. Weve got about 50 minutes of trading left in this session with the dow dipping down toward its session lows off about 129 points. A lot of cross currents in this market that we were just discussing. Chaos in iraq sending Global Oil Prices higher. The latest developments from nbcs Jim Miklaszewski are next. Plus, well speak with a middle east specialist and former u. S. Ambassador to iraq about how bad the situation could get. Also coming up, elon musks tesla motors, deciding to share its patents with competitors, with anybody, really, if it makes the planet cleaner. But is that really its motivation . A Billionaire Hedge Fund legend sits down with me in a closing bell exclusive. Im a big fan of uber and i think google owns 20 of uber. Youre watching cnbc first in Business Worldwide. Come with me, his wife said. Big job, big city, big new country. How can i move to a city, he said. Im a country boy. Let me see what i can do, she said. So she opened a bank account, sent money, rented an apartment. And found him a little bit of country. In over 700 cities worldwide, products and services that make a citi client anywhere a citi client everywhere. Yeah, citi mobile. Pay the dog sitter . And deposit that check . Citi mobile. Pack your bathing suit . Wearing it. Niiice bank from almost anywhere with the citi mobile app. Welcome back. Crude oil spiking in the wake of iraq possibly spiraling out of control. Closing at its highest since september, thats sent the Airlines Stock into a bit of a free fall today. Nbcs pentagon reporter Jim Miklaszewski now has the latest developments for us on a busy and troubling day for news out of iraq. Reporter what sounded like the Biggest Development of the day is when president obama addressed reporters and said, look, all u. S. Options including u. S. Military options to help iraq out of this situation are on the table. But that doesnt mean theyre all good or viable options. According to senior military and dod officials, there is no current planning for any kind of air strikes. One of the problems is because the u. S. Doesnt have any kind of good intelligence, that would be absolutely vital, absolutely necessary to conduct any kind of effective air strikes. At the same time on the ground today, isis took another town today, samarra, it is a shia stronghold and one of the religious icons, the golden mosque is there. If the sunnis did what they did during the war and blow up the mosque, that would blow up the entire country and it would be overnight an allout civil war. All right, jim. Thanks very much. We appreciate that report. Some of those names are names we remember from the iraq war, samarra, tikrit, mosul and others. Joining us now to discuss what the possible outcomes might be, elon, first to you. What do you think is the likely response by the u. S. In this situation . Well, i think it is very hard to envision a very policy on the part of the white house simply because there arent a lot of good options to be had right now. The president articulated sort of a steppeddown process in the middle east precisely because the narrative was iraq is stable, iraq is selffunctioning, selfgoverning and selfpolicing. What were seeing now is thats not the case. But we also know that the american electorate doesnt have a lot of appetite for a repeat of gulf 2. As a result, the administration has a fullblown Foreign Policy crisis on its hands and it doesnt have very many good options. As butch said to sundance said to butch, who are these guys, what do they want and where are they going . Sure. I think this is a franchise of al qaeda. Al qaeda, they are extreme radical sunnis who want to kr l control an area between iraq and syria. Theyve been setting up an Islamic State by really capitalizing on local grievances that are stir a response in dealing with the sunnis in iraq and spread iing. I dont think it will lead to state collapse. Iraqi forces have ilan, people are saying it is already the army is walking away from their i say parts of the state will remain outside government control. Thats what will happen. Northern part of iraq will not have any government control for the foreseeable future. However, these soldiers, the shia soldiers that were fighting in the north, are less likely to advance. When it comes to the shia area in central iraq, theyll do a much better job. Talking about also the potential support from iran and the u. S. Ilan, is it perhaps worth noting in a situation that Bashar Al Assad is now aligned with u. S. Interests . I think it is noteworthy but not in a good way. I think if we remember back to the hostilities that took place in iraq during the mid 2000s, it was in very many ways a proxy car between iraq on one hand and sunni forces, including al qaeda and including saudi arabia on the other. Were beginning to see history repeat itself. The iranian leadership has already said that it is willing and able to send its clerical army, the irgy, into iraq to stabilize the situation to fight al qaeda. In both scenarios, whether iran wins or al qaeda wins, i think american interests are going to take a serious hit. Ilan, you said one of the dangers, and you dont foresee it, is state collapse. But one of the of arguments here is that in this part of the world for historical reasons, many of these countries really arent states to begin with. They were established decades ago by the british mandate, and really are can glom rati lly ao people that dont get along very well. Sunni, shia, minorities and kurds. I think were looking at iraq being a very dysfunctional state for the foreseeable future. But in terms of how it affects the exports, oil exports from the south, i think were looking at minimal risk at this point. I think the expectations that 2. 78 barrels, i think the risk of that is very limited. Whatever the situation is, there are few good options, seemingly, for the u. S. We have about 40 minutes of trading left with the dow industrials only a bit off the lows of the day. Up next, tesla is making its patent available to rivals and anyone else who wants to copy its innovation. Why would it make such an unusual move and what kind of precedent might this set . The scoop on whats going on at twitter. Well be right back. Means keeping seven billion ctransactions flowing. G, and when weather hits, its data mayhem. But airlines running hp endtoend solutions are always calm during a storm. So if your business deals with the unexpected, hp big data and Cloud Solutions make sure you always know whats coming and are ready for it. Make it matter. But were not in the business of spokespenaming names. Kswagen passat is heads above the competition, the fact is, it comes standard with an engine thats been called the benchmark of its class. Really, guys, i thought. It also has more rear legroom than other midsize sedans. And the Volkswagen Passat has a lower starting price than. Much better. Vo hurry in and get 0 apr for 60 months on 2014 passat gasoline models plus a 1000 contract bonus. All stations come over to mithis is for real this time. Step seven point two one two. Verify and lock. Command is locked. Five seconds. Three, two, one. Standing by for capture. The most Innovative Software on the planet. Dragon is captured. Is connecting todays leading companies to places beyond it. Siemens. Answers. Welcome back. Stocks just off their lows of the session but it is still a negative day. The dow off 108 points this hour. S p gives up 13 and the nasdaq 37. Lots of cost currents riling the markets today. Tesla shares heading south, too, after the billionaire founder and ceo elon musk says his company is going to share patents with everyone. Including rivals. Phil lebeau, why is he doing that . Reporter its all about trying to spur development of more electric vehicles in the industry. Something weve heard about in the Tech Industry but it is really unheard of when you come to the auto industry. Tesla is opening up all of its patents, at least hundreds of them, to other competitors. Theyre doing this for competitors who want to use those patents in good faith. In other words, if you are a Startup Company and you make a duplicate model and youre not getting due rates, things may be a little different. It hopes by opening up its patents it will spur development in the industry. Heres elon musk in the Conference Call talking about his disappointment were not seeing more when it comes to eds. I thought things would be much further along than they are. You consider the fact we built the roadster seven years ago with a roughly 50mile range. Its been seven years and theres no other electric car in production with that range level. I mean thats not great. Reporter nor is it great when you look at the sales of electric vehicles last year in the United States. Under 100,000 were sold. Compare that with all other vehicles 15. 5 million were sold last year. Take a look at shares of tesla. We noted they traded lower during the session after they made the announcement today. Guys, bottom line is this for tesla and all electric automakers, to have sales take off, they need to have the price come down on batteries and more energy in those batteries so you can get more range in the vehicle. Stick around with that. Were joined by ross gerber from gerber kawasaki. Let me pose the same question i posed to phil to you. Why would he do this . Is it a desperation move and whats the risk someone comes in, sees something in those patents and finds the breakthrough that actually doesnt help tesla, but hurts it . I think theres no risk in that at all. I think what elon musk is saying, hey, we need electric cars in this country. Look at iraq, the piece you did before, it is all about oil in the end, all this fighting. We need to get off the oil economy that were on. What hes saying is i put out this great car and after all this time, nobodys even got it even close to a competitor to me. Im trying to b