Transcripts For CNBC Closing Bell 20150909 : vimarsana.com

>> also, a new apple tv and ipad pro plus, that apple pencil. a few of the announcements coming out. we'll take you there live with the details coming up. >> fitbit is on fire these days, up 7% this week. we have the analyst that says that stock is going to $50 a share. >> plus, new details on the wall street heavy weight who went to meet with the chinese government. more on that story coming up. >> that's very interesting. let's start with the latest from apple's event. i'm sure he's having to keep talking to us while it's going on inside there. give us a quick recap of what we've -- what's been unveiled today from apple here, john. >> well, you caught me at a good time. they're wrapping it up. i've got more detail than i've had up until this point. and key details on pricing. how does apple talk about pricing in a world where so many carriers are moving away from subsidies? well, the same way. they will be priced the same as previous generations. the 6 and 6 plus are going to be $100 cheaper, and the 5s will stick around at the beginning of the line. sounds like they're getting rid of that 5c. but they also said a number of carriers will be doing installment plans. apple said they, themselves, have an iphone upgrade starting at $32 a month where you'll be able to choose your carrier. it's an unlocked phone. and that'll be $32 a month. sounds like you can switch between carriers more easily. saturday, september 12th. the 25th is when availability will open up for the first retail stores and the ios 9 will be available september 16th. new interface borrowing from the technology that we've already seen in the apple watch. it is mostly going to be used, looks like, multitasking. switching between apps, doing more, drilling down without having to do so many. and craig, of the senior vice president over software did a demo. take a look. >> instagram, i can jump right in. and when i'm in here with these picture thumb names, of course, i can peek right in. i can do it just like this. or if it was a person i follow and i want to see all of their photos i can, of course, dive deeper and pop right in. >> now, besides that, there's also an upgraded camera on the backside. it's 12 megapixels up from 8 meg pixels. they've worked on the sensor so it doesn't degrade with more noise from the pixels. also, the front-facing camera, the eyesight camera, the facetime camera is 5 megapixels and the screen lights up to provide a flash that's appropriate for the type of lighting condition that you have. they also talked about apple tv. that is a new box. a bit more expensive, but it has an app store. we're now going to have games, wider variety of apps, fitness apps and the like on this. besides just content, major league baseball had an app demonstrate that got the crowd's attention. also, a new ipad, the ipad pro now close to 13 inches diagonally, 12.9 inches, starting at $799, more powerful with an a9x chip. all of the demos had to do with enterprise and professional applications. they say that this is more powerful in graphics than 90% of the pcs that have shipped over the past 12 months. they want to do this, obviously, to beef up an ipad line that has seen declines in growth. not just slow growth, but actually declines in sales from a revenue and unit perspective over the past several quarters. we'll see if they're successful with that. the take away, apple's not focused in the september event on the iphone anymore. it's an eco system. and sounds like they're hoping the products will help to drive iphone sales. also the new financing plan they've got. back to you. >> you've done many of these presentations, how do you rank this one? >> is this what the market's been hoping for? or is this another presentation by apple? >> bill, i think it's notable that apple, at least for most of the day hasn't been down as much as the overall market. i'll tell you, the day of, investors are just bad at reading the significance for the announcements. apple has been trending in the right direction as far as taking share from samsung, taking share from android overall. there's a decent chance with this given the success of the 6 and 6 plus that these new phones will do well because, i tell you, a camera is a key feature that tends to spur people to want new phones. and the fact that apple is helping to make new phones affordable itself, not just the carriers helping to get people out of that two-year cadence, necessarily, that could help, as well. >> got to take a better selfie, bill. >> that's big. >> john, we'll leave it there for now. very much appreciate it. our jon fortt in koocupertino. and max wolf from manhattan, welcome to you both. can the stylus save the ipad? >> i think it is. it's a huge product for them. and i think a lot of people discounted that. ipads have been slowing for the last six quarters. >> this is a big deal. a lot of guests on today that have talked about samsung and microsoft being a competitor. what i see is they can take market share under $1,000. this is a $60 billion to $70 billion market. if apple has the functionality that they can replace the laptops, this could be a huge opportunity for apple. and i don't think enough analysts are talking about this opportunity. >> max, you've been the skeptic on apple, bemoaning the lack of revolution. we're getting more evolution from the company lately. what do you make of at least what you're hearing out of the presentation today? >> it's why i like the company. i think it's a good bet, a pretty safe place and a pretty rocky market where a lot of the other places people are likely to be a lot worse. that being said, i think this was incrementalism at its best. >> to me, the big news was really kind of enterprise focus on the ipad. i think if they can make it hipper, newer. they can penetrate the living room. not get left behind in the internet of things. to me, that was really exciting and i think the company deserves a lot of credit for pushing out the boundaries of what they could do there. that to me was big news and i think it was sort of a buried lead in the whole day. >> let's delve more to that in a second. to this point on the ipad, the two new features introduced here are the keyboard that goes for like, i think, $179. and the stylus, steve jobs said was a sign of failure in the tablet space. now it has a host of new features. do you think the stylus is a significant, or the pencil, i should say, step here, or is it more incrementalism for the ipad. >> it's a little bit of saying, hey, looking, we realize that other guys figure out what the public wants and we're not going to ignore it. whether it's a larger device or a stylus which has long been something people associate with a larger format target stuff from samsung. that being said, it's a good idea. i think if you want to be competitive in the low price, sort of maybe desk top replacement market. maybe charging people $100 for a product that can't cost more than $10 to make on top over the $1,000 device isn't a great way to make the penetration. it's a little bit, maybe guilded lily, but i like the product, i think it does interesting things, and i think you'll find a place for it among creatives and early adaptives. >> channing, what do you think about what max is saying? >> i think he's right. i mean, we're going to have to see how this product evolves. i think there's a lot of potential there. for years, we've been waiting on some type of creative product. we've watched the ipad deteriorate. i think this is a promising growth opportunity. i'd also agree with max. and if you look at apple tv, they can go after a lot of different markets here. look at the gaming market, a $30 billion to $40 billion market. they're going to come in on the low end but start taking market share. >> i take your point. >> trying to be a jack of all trades and a master of none? >> well, look, they're a master of consumer products, and this fits right in the wheel house. they have shown time and time again that they can dominate product categories. they've waited to dominate apple tv. just think of the potential, if apple starts creating bundles for tv content. this could be a huge opportunity. that's the big opportunity coming down the road. they can really thrive in that area. >> thank you for your thoughts on the presentation today. thank you very much. >> appreciate it. >> let's turn to the market downturn. we thank their patience. john brady at the cme with r.j. o'brien. there are an awful lot of people lately, they feel like there's another shoe getting ready to drop at some point. do you feel that way, as well? what do you think is going on here? >> no, i do think there is another shoe waiting to drop. i think there's going to be disappointment come next week when, you know, people, some people are betting that the fed is going to start raising rates come, you know, next week. i'm not one of them. those people will be disappointed, then there'll be people who will be disappointed with, you know, data that's going to be coming out for the next couple of months. i think that, you know, we have a ways to go. i think there's a lot of risk in this market. and i think that you've got to be very careful. >> john brady, is it possible apple can quell nervousness about the chinese market here as it continues to try to say, look, our sales trajectory remains strong there? >> kelly, maybe apple can quell maybe global unrest or unrest in china. china has shown signs the last couple of days of stabilizing. the thing that the single most important thing that's dragging this market lower today is indecision by the fed. we have entered their blackout period. and the guess right now, and it's only a guess, about 30% is that the fed is going to tighten next week. and this the kind of situation the fed did not want to find itself in where it's been trying to be transparent and communicate more clearly to the market. the market has no clue whether it's going to tighten next week or not. and neither does the fed. that's going to lend to volatility. >> any safe havens in this market right now? >> i think there are very few. i think, actually, investment grade bonds, high-yield bonds look pretty good. i think equity values are still supported by a huge leverage community that's really banking on rates staying near zero. i think fixed income is going to be competitive with equities over the next six months. >> john, what do you think? especially as we keep a close eye on treasury yields. >> right. well, treasuries are certainly a beast on their own. and there's been a lot of talk today about the relationship between credit product and treasuries. specifically, the 4 to 5-year sector. but more to the point of equities, we think this 10% down drop we saw in august is very healthy for the market, but technically, we're probably going to re-test it in the coming weeks. as soon as the fed gives clarity to the market, it's going to be up, up and away again. and we think stocks will be higher, 3 months, 6 months and 12 months from now. you are going to see a retest of the lows. if the fed fails to communicate, can clear policy. >> peter, last few minutes of trading here, what are you expecting? what levels are you watching here? >> well, we'll look at the industrials just because that's a simple one. i think 16.3 would be my baseline. i don't think we're going to hit it. but i think, you know, with the close looking toward the sell side. not a big deal. i don't think it's unexpected. you know, it's more about what we're going to see over the next couple of weeks if you think the fed is ready to do something, you get ready for it. >> thank you, everybody. >> the shares of chesapeake energy spiking here a report saying the company is possibly seeking a sale of some of its assets in the utica shale region. that part of the shale in new york, pennsylvania, ohio, parts of canada. that utica shale sale could fetch upwards of $2 billion. very much of the energy trades. so we'll see if that sticks around if that fundamental buying comes in or whether, again, this is short covering for some of the energy names. back over to you, kelly. >> thank you for now. the dow giving up 103 points. the s&p 500 down 11, the nasdaq, doing okay. hanging about a third of a percent, 18 points. >> they are wrapping up in cupertino. much more ahead on apple's big announcements. walt mossberg will give his key take aways coming up. up next, we'll hear from the analyst who says fitbit is going to $50 a share. you're watching cnbc first in business worldwide. at&t and directv are now one. which means you can watch movies while you're on the move. sitcoms, while you sit on those. and even fargo, in fargo! binge, while you lose weight! and enjoy a good cliffhanger while you hang from a... why am i yelling? the revolution will not only be televised. the revolution will be mobilized. introducing the all in one plan. only from directv and at&t. a turn around day on wall street. the dow opened up 172 points. we've been down about 130, coming off those lows right now, down 93 points. alibaba shares are up. and yahoo has reversed yesterday's after the bell losses. our david faber reporting that yahoo may, in fact, proceed with its spinoff of alibaba shares afterall despite being rebuffed by the irs at the request of a private ruling in favor of a tax-free spinoff. that's crucial to that spinoff. and if -- it's not going to be tax-free, they may not do it. but david's saying, maybe they will afterall. >> shares up nicely, 2.5%. now apple may have some big plans for that watch. but when it comes to wearables, fitbit out in front. up more than 80% since it went public in june. >> it's a technology and research analyst at fbn securities, initiated the stock with an outperform today. he has that $50 price target on fitbit with it trading at $35 a share. i was looking during commercial. are you wearing one? >> no. >> you're not wearing one? >> no. >> just checking. >> i was looking for one. >> why do you like this company? >> i think the wearable trend. at the very beginning of the trend is going to go from 70 million to 500 million by 2020. >> why fitbit? >> it's the market share leader right now. they have a 25% share of this market. apple just with apple watch is now 12%. i think, you know, those competitors are going to be very strong, but fitbit has a market advantage. and i think apple watch is going to hurt fitbit. but apple watch's price point is $500 to $600, the sport version is $400. but the surge, the sport watch from fitbit retails for $350. so it's completely different. >> they still had a problem keeping their sales momentum up, especially in the, what is it the third quarter? current quarter? i don't know if it aligns with the fiscal quarter. nevertheless, they go from a strong start of the year, they have mother's day, father's day. the middle's a little bit of a soft patch. that could be a fair pattern for many retailers. do you still expect it to be okay. to see a deceleration in sales quarter to quarter? >> well, realize, you say deceleration -- >> a decline, outright in sales. >> there was a guided sequential decline in q-3. but they were smaller then. i think as they get bigger and more mature, they're going to have more seasonality. what you should also realize is that the q-3 guide implies well over 100% year to year revenue growth. they're still growing very rapidly. and i expect that revenue growth to decelerate from 100% as they usually do. i still think that strong growth is intact. >> the skeptics were saying that they felt like it was right or wrong perceived as a one-trick pony in the health industry whereas a multifunctional wearable piece of technology might be the place to go where you're hedging your bets. you're going with things that people can do. they can do e-mail, answer the phone, you know, whatever it is instead of just counting steps and watching their diet. >> i also think those would be more expensive products. a lot of the products at $100 to $150 price points. the highest selling product, $150. you know, i think that the swiss army knife, the product that can do everything is going to retail much higher price point. eventually, the prices are going to come down. if you look at the r & d investment from fitbit recently. >> i don't understand, do you want their prices to come down? or do you want them to be the cheaper end of the market because that differentiates them from apple? or on the higher end which some of the products at the upper ends of the line where where they're getting the better margin? >> i see the market this way. it is at the very low end. okay, like the -- the low end product is like $20 $50. then you have apple, i just mentioned $400 to $600. and then you have fitbit in that sweet spot. i wanted them to retain focus on that sweet spot. there's a lot of opportunity in that market. >> all right. we'll see what happens. you know, stock has done well. but it's -- it's up 2.5% today in an otherwise down day. fbn securities. good to see you. >> thank you. >> appreciate it. >> we're heading to the close, got about 37 minutes left in the trading session here with the dow down 109 points after opening up 172. so, yes, we've had volatility today. corruption at united continental. phil lebeau with new details on the ceo. plus, walt mossberg will be joining us to get hiss take on apple's new product announcements. a lot of questions for walter coming up. so you're a small business expert from at&t? 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>> and bill, i think one reason why the stock has moved higher, cautiously optimistic comments about oscar munoz who takes over in an unusual situation. the former ceo and chairman of united airlines, he resigned unexpectedly along with two of his top executives. their resignations are tied in to a federal probe as well as a united investigation into the new york, new jersey, port authority. which, at the time it was being investigated was run by david sampson. why is he important? because he owned a house down near columbia, south carolina, and a lot of questions why united was running a flight between newark and columbia, which is not really a high-destination market out of newark, was there a prid pro quo in exchange for the negotiations with the port authority? now taking over at united is oscar munoz. he was on the board of united and has been on the board of united since 2010. he takes over a company that's got a lot of challenges right now especially relative to the competitors who seem to be operating more profitably, more efficiently. underperforming operations is the primary challenge for mr. munoz. he seems to have a battered corporate image. put that together and you have a company that a lot of people look at and say, it could be a sleeping giant if he could somehow get the right team in place and get united airlines to operate more efficiently, more profitable. that's the slight optimism we're hearing from analysts. guys, we should point out, oscar munoz talked with analysts on wall street and said all the right things, but we still haven't seen what his plan is for turning around on united and making it a far more effective major airline here in the united states. >> well, he has been ceo less than 24 hours. >> yes, we'll give him a few more hour's time first. but no, seriously, phil, when he comes in to take the role, there's little they can do other than incrementalism,. do they reroute. in other words, how much when you come in you want to impose your new vision on a company. how much room do they have? >> they've got a lot of room for improvement. it's no the that he needs to do a major deal in order to make his mark. what he does need to do is to put a team in place and have a culture that specializes and focuses on customer satisfaction. you'll look at united whether it's on time arrival rate, they're near the bottom, you look at customer satisfaction reports, they're near the bottom. it's not uncommon to come across a crew that's frankly not happy. that's reflective of a culture where they need to change things. oscar munoz says he's going to change that culture. >> i remember the youtube video that went viral. you know, maybe with the time it was one of those stories about videos going viral. maybe it should have been more deeply about the culture of united. thank you, phil. >> thanks, phil. >> you bet. >> time now for a cnbc news update. as we keep an eye on markets, the dow down 167. let's get over to sue. >> hi, and here's what else is happening at this hour. china's premier telling entrepreneurs that china has no intention of continuously devaluing its currency. also telling those business leaders that china has far more to lose than gain if a global currency war broke out. secretary of state john kerry speaking to his russian counterparts to express concern over reports of russian military activities in syria. he warned lavrov it was unhelpful in resolving the crisis there. john mccain blasting policies on the senate floor. he said total lack of american leadership fueled the current humanitarian crisis. and an exhibition of photos by former beatle ringo star is on display in londs. including images of his fellow beatles joking around and relaxing, as well as photos of the band's first visit to the u.s. back in 1964. those photos are being published in a new book. which i'm sure, guys, will be incredibly popular. looks really cool. >> i wonder if he took those with his blackberry. >> yeah, right. especially the one in 1964. >> oh, yeah. >> 12 years into the reign of the current queen. >> remember that big song he had back then? "photograph"? >> yes. >> that's why he sang that, i guess. >> thank you, sue. >> see you in an hour. >> 30 minutes to go. we are moving decisively lower in the last couple of minutes. ten minutes ago, we are down less than 100 points. >> peter costa mentioned selling pressure into the close. getting that right now. when we come back, a leading trader will weigh in on what he is monitoring in the last, most important 30 minutes of today's session. >> plus, that big apple event, it did wrap up. josh lipton will have the latest after this quick break. hi my name is tom. i'm raph. my name is anne. i'm one of the real live attorneys you can talk to through legalzoom. don't let unanswered legal questions hold you up, because we're here, we're here, and we've got your back. legalzoom. legal help is here. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i got a medicare supplement insurance plan. 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[ male announcer ] you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. see why millions of people have already enrolled in the only medicare supplement insurance plans endorsed by aarp. don't wait. call now. welcome back, the dow is down about 180 point in times, n. it is to the top left of your screen. american express, intel holding okay, as well. this is more of the story. cvx, home depot having a tough session. also some of the biggest decliners in the session today. that upgrade on goldman sachs helped that stock there. alan valdez, i think you're among those. you're not ready to economic to this yet. and you're not ready for that? >> and i think you're seeing it today, a lot of uncertainty out there, making this market down. i mean, the volume's not big, you know, that news today from the labor market. good for the feds, but then you have the imf and the world bank come out negative for a fed rate. i think it's that uncertainty weighing on the market. >> does the market want a rate increase next week, or not? >> we don't get a rate increase. >> you've got the market turmoil and the world bank saying the emerging markets will freak out. if they do raise rates. >> there's always going to be a counter to counter. >> the market's going to take that as a sign of more weakness than they're not telling us. >> up 172 on the open, and now, we had a world rally going on. japan up 7%, then european markets were strong. we've ended that strength right now, what do you think? >> i think it's really weighing on the market. i think that moved the market. apple, stock's down 80 cents. they're tough to please. aren't they? >> thanks, alan, see you later. >> josh lipton in san francisco for us. what can you tell us, josh? >> well, kelly, really a range of new and revamped products announced here today. tim cook took the stage talking about the tv experience not changing in years, in decades, and with that, he introduced this new apple tv. new user interface. and also an app store. get to work designing apps, you're going to listen to music, watch tv and movies, you're going to shop with guilt and watch baseball. that apple tv, kelly, starting at $149. now, of course, it's all of about the iphone, right? the apple is the iphone company, that device accounts for 60% of the company sales. here's what tim cook had to say about the new iphones announced today. take a listen. >> iphone has changed the world. what we have to show you today is really awesome. while they may look fwar. familiar, we have changed everything about these new iphones. >> and with that, cook introduced the 6s and 6s plus. faster phones, improved cameras, also pressure sensitive displays. the 6s starting at $149. and of course, the question for investors is do you think it was announced today he's going to help grow those iphone units in december and next year? also, the ipad. apple announcing today the ipad pro 13-inch display. i talked to tim cook. he remains bullish on that tablet and it's because he thinks they can continue to win in the enterprise. and after all, when you look at that tablet market, kelly, overall, you're seeing a real plateau, but the growth is in business. companies continue to buy tablets, that ipad pro starting at $799. and we'll end here, kelly, with the ios 9, the new operating system, that'll launch on september 16th. and of course, that's really a kind of marketing tool, the ios 9. we'll see how quickly people adopt that. if they adopt that, they're impressed with the ios 9, maybe it helps them move today. back to you. >> either a push or pull, whichever way to get the devices in the hands of consumers. thanks for now, josh. heading to the close. 20 minutes left on the trading session here and the selling intensifies. down 195 points. right now. the industrial average a decline of 1.2% as we announced now at a decline. peter costa had it right, alan valdez, everybody skeptical of this market still waiting to see when a good entry point is going to be. don't see it yet. >> up next, we'll have walt mossberg with his take on the range of product announcements. we're back after a short break. the selling continues while we were in commercial. the dow was down 223 points, just off that, but we're seeing it decline there. in fact, that and the dow is the hardest hit of the major three averages now down 1.3%. >> lots of chatter this afternoon about technical levels, you know, trading action today. we started up as many as 172 points higher on that index. we've had a really big swing today. and it pretty much just looks like a wedge. we started higher, we quickly gave up those gains, we moved throughout the session, and now we are looking to close significantly lower. >> don't know how much of this is attributable to, you know, the apple presentation out in cupertino. and alan valdez saying they weren't as impressed as they were hoping to be. >> let's bring in a friend, co-executive editor. he was at the event. have you played with any of these new toys yet, walt? >> i just fooled around a little with the apple tv, bill. >> okay. what did you make of the presentation today? did you get what you were after? or was this just another incremental move by apple on a lot of these products? >> well, some of it's incremental, but i think they outdid expectations today for these products. you know, i don't predict sales, but i think what they did was, first of all, on the iphone, they cleared the barrier of having enough new stuff to justify people thinking they should upgrade. especially in a year where they have an "s" model. some of the stuff in there is really impressive in terms of overhauling the basic navigation of the phone and the camera stuff in that is pretty amazing. i think on the apple tv, again, they laid the foundation for what we know is coming later, which is their attempt at a tv service. and they cured a lot of the complaints about the older apple tv. so that looks great. didn't have much to say about the watch except a bunch of new colors and bands. that will depend on what developers do. but overall, and the ipad. of course, where they're heading for enterprise as josh said earlier. so, i think it was overall quite an impressive event. >> you know, while i'm remembering in 2010, when the ipad first launched and there was so much hype and disappointment about what it was. and people thought this was it. but you wrote, this came pretty close to being the laptop killer. and, indeed, even though is part of the tablet ecosystem. that's what we're witnessing. when we step back and think about the products today, when he adds the stylus, the keyboard, what's the mossberg take on what this means? >> well, i have two reactions to that. one is, this is kind of a nod to microsoft. who's tablet has a keyboard and a stylus, and that's interesting. but i also think you're right, the point is right that this makes it even more of a potential substitute for a laptop. and fits with the enterprise strategy. cook looked at this year ago, at least, a year and a half ago and said, okay, this was at one point the fastest growing thing anyone has brought out. now it's plateaued or declined. where can i go? and i can go to enterprise. what do i need? i need a bigger screen, i need some new input mechanisms and that's what we saw unveiled today. and so, i don't know if it'll work or not, but some of the apps they demoed using the stuff on stage were amazing. >> you know, i don't, i love my ipad. i use it for so much. i don't get why sales are lagging. why is it lagging in sales right now, walt? and is the pro a step in the right direction, necessarily? >> yeah, you know, i don't know if it's a step in the right direction in terms of screen size. because obviously that changes the portability of it, bill. my own guess is that remember this is a a 5-year-old, 6-year-old device, and i don't think people understood what the replacement cycle for it would be. in the initial year or two, it grew faster than any consumer electronics device. it grew -- loads of people had ipads and cheaper tablets, other table tablets. and, i think they're basically happy with them. and apple's got to try to say to them, look, there are new things you can do, you know, we have split screen, we have all of these other things you can do. >> right. >> but meanwhile, meanwhile they're -- they're leaning on a whole different market, which is enterprise. and as you know, they've got deals with ibm and cisco. so we'll see. it's expensive, though. this ipad pro is expensive. >> depending on the size you want, that's for sure. don't be a stranger. >> okay, bill. take care. >> see you later. >> walt mossberg there. 12 minutes to go in the session. here's what's interesting about today. not just a 400 point swing, from the highs of the session to the lows. more on that now as the dow is down 242. the japanese index rallied 7% overnight. that would be more than 1,000 dow points. i don't even know what to make of that. >> as a matter of fact, art cashin was signaling behind the camera, we've got 200 million to sell still, not a lot, but still, enough that it's taken the edge off there. >> broader asia couldn't get much of a bid, europe started stronger but gave those gains up. anyhow, keep a close eye on it for you. ten minutes to go. >> find out who has been advising the chinese government on the market volatility and how to handle it. that story coming up in a moment. welcome back, more than 400 point swing as the dow with eight minutes to go is down 250 points on the session. now the recent downturn in china has left many market watchers wondering if the government was getting any advice on how to deal with this volatility. >> scott wapner with more on this interesting story. scott? >> yeah, thanks so much. a big market name, indeed. turns out that black rock chairman and ceo larry fink recently traveled to china to meet with officials about the situation there. that's according to may sources familiar with that trip. i'm also told the visit took place just as the turmoil was reaching a crescendo. given concerns the chinese economy like the stock market is in the process of rolling over. and attempts by officials to step in and quell some of the anxiety have done little to relieve investors. so news that mr. fink went there in person and is one of the most respected names on wall street will, for some at least, be a welcoming and comforting sign. should be viewed as no surprise. fink has routinely met with finance figures as one of the world's largest asset managers. his name has also been bandied about as a possible treasury secretary. it is nonetheless interesting that when china's leadership looked for some guidance, they turned to larry fink to get it. i mean, bill, kelly, we were sort of wondering what was going on as all of this was unfolding, not only the anxiety about the economy, but the stock market. who if anybody was advising the chinese? because investors are many people who said the way the chinese handled everything or continued to handle it has been a bit clumsy. >> i think don cohn had a few meetings. the first thing we heard about china was the stories about where was the chinese operations and, you know, the journalists and sort of the traders seemed to be rounding up. this has a very different feel to it. >> very different feel. and you wonder what he told him. >> yeah. exactly. continued reporting on that. that's the best i can tell you. but at least we know that he was there. this anxiety seemed to be reaching its peak. we're coming back with the closing countdown with the selloff continuing. >> back in two. keep it here. time. sup jj? working hard? working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? 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>> well, there was certainly an upgrade to goldman sachs saying the selloff made it attractive. but really, what you're seeing today is a selloff. the news that drove the markets higher in asia overnight wasn't anything new. there were repeats, essentially. i think the market was a little bit vulnerable coming in here because we had a big gain yesterday. >> yep. >> consolidation was expected. >> i don't envy your job. what do you tell your clients with this kind of volatility right now? especially when there's still tremendous skepticism about this market here. >> the toughest part about the market today we've talked about is the fact there's these huge selloffs that you know were emotionally driven in the last half hour of the day. walking in the front door of the stock exchange. since then, literally the loss is double. and an emotionally driven market like that. the problem with the average investor. they aren't taught to trade, they're taught to buy and hold. our average viewer is taught to buy and hold. and the reality of it is in a market like that, the average investor can get financial whiplash. i'm telling people to be really, really cautious right now. we had a great 6 1/2-year run. >> are there safe havens out there? >> a lot of safe havens available outside of the market. i hear people all the time who say, you know, gee, fixed income -- >> right. >> but to me, i answer those folks by saying they don't understand fixed income. >> they're not understanding stocks today, that's for sure. thank you both for joining us. a great turn around day. we'll see you again. this is the end of the global rally we've seen this week. more to come on that and what apple introduced today on the "closing bell" with kelly evans. i'll see you tomorrow. >> welcome to the "closing bell," i'm kelly evans. the dow could not hold its gains this morning, we took a 400-point swing lower, the closing down 236 points. the s&p 500 kind of the same story, a loss of 1.4% or 27 points and there's a look at the 30 components of the dow. goldman, american express, united health, the top three. but no green there at the close. so even those three posting tiny declines. now, chevron, the worst performer, proctor & gamble, disney, they're doing poorly. well, as all things are tallying up, they're trying to get green on that screen. look at where the broader index are settled out. the s&p 500 and the nasdaq, the vix was up 1.5 points today, above 26. crude oil had a really tough session. and interest rates holding in there at just below 2.2%. joining us now to talk all about that and apple and much more today on the "closing bell" panel, cnbc contributors walter isaacson and john najarian in the house. welcome, both. >> good to be here. >> "fast money" trader guy adami, maybe you can tell us what happened today. >> well, john can speak to it. i was just talking to his brother pete. it was as simple as the word i heard bill griffith use and that's volatility. i don't want to get too wonky, but it's a situation where quite some time, options traders were rewarded for selling volatility. those same people are now being punished for selling that same volatility. and what happens is and john can speak to this, the higher the market goes, the more things they have to buy. and the lower the market goes, the more things they have to sell. that's the nature of having negative -- or bad greek. and i'll add to it this. knee-jerk reactions by global central banks based on things they perceive to be happening, driving markets is a recipe for destruction. on the upside and to the downside, you saw it yesterday. the upside. i think you're seeing some of it today to the downside. >> john, i guess the point for people, then, trying to figure out what's going on, this is some kind of technicals that have to do with what guy was just referencing. or was there something more fundamental we can hang our hats on to say, hey, this is the problem. >> guy is right about bad greeks. no the the people, but the calculations, the gamma, the vega and all that stuff. he is dead on about that. the more it goes to the upside, the more you're chasing, the more to the downside. the people that are in that position were in a world of hurt today. it seemed, kel, that the fed could've made it a lot clearer to us in the last time they met. they chose not to, they chose to be ambiguous and to give us sort of, you know, this glass half full, half empty. most of us would've preferred the opposite with them being dead on about raising rates in september or saying, look, it's not going to happen at all even in 2016. one or the other, the markets would be in a much better place right now. now, we're where we're going to be until the 17th of september. and reports like today that report, that just pushes people all the more to believe, yes, they could move, but they're going to move at a time when the markets are vulnerable. are they going to move? i would rather there just be certainty on this. >> we'll come back to that in a second. but never have i seen the job openings and labor turnover survey. showing a lot of job openings in this country, people are there willing to hire, you expect wage pressures to follow. red hot, some of the economists are calling it, walter. so, you know, we've got that on the one hand, the markets on the other hand, which over the last couple of weeks have left people with a little feeling of nausea. >> especially the volatility overseas. the nikkei going up 7.7%. that's breathtaking, and then, well, we had a huge day, a big gain and then a swing of almost 440 points? >> yeah. >> so i think it's a lot of volatility. but also, there's uncertainty about asian markets swinging wildly. all started by the chinese devaluation and the problems in china. >> and still waiting on them to some extent to come in and be able to quell those concerns. >> yeah, people who criticize the fed, and i understand it, for sending mixed signals. they really do seem like they're dancing on a frying pan in china. >> fair enough. also today, the market seemed to be tracking the action in apple. so we had the big announcement from about 1 to 3, our time here. the selling pressure on apple was picking up a little bit. i think in point terms, it was number five. it closed down nearly 2%, guy. is that enough to spook the broader market? >> you know, i'm in the camp that says i don't think apple in the broader market are all that linked. i think if you go back and look over the last couple of years, apple tends to move and stock market moves the other way. happens as often as they move in tandem. i don't think there's any causality. you go back the last couple of weeks, outside that $92 print that was a bit out of the norm. i mean, apple's basically been $110 stock. i still think you trade it against the 103 1/2 low we put in on the 24th and 25th of august. but it doesn't seem to really want to go anywhere right now, and there are no real catalysts on horizon. >> were you surprised? i don't know how closely you were following the event? but to see apple come out with a stylus. if you ever see them do this, they're making mistakes. >> i'm not surprised because tim cook says he's running the company now and that's exactly what steve jobs would've wanted. i think if you're going to go into the enterprise market, corporations and businesses, the stylus makes sense, the bigger screen makes sense. i don't think anybody's thinking what would steve have done? or steve say? steve made fun of styluses and, you know, good lord gave us ten of them. >> ten of them. >> we don't actually need an 11th one. but there are a lot of things steve jobs said when he was around and then he would change his mind as the facts would change. >> not to mention the ten styluses can be tricky to use sometimes. >> yeah. but this particular -- the monster pad or the pro as they're calling it, 12.7-inch, 12.9, the much larger does have significant applications in mechanical, hospitals, health care and various spots. it'll be a windfall for whoever makes the cases, that's going to be a delicate device at that size, obviously, any corner that hits the ground could be pretty disastrous. >> i like your point. >> i do like they've gone this way despite the fact that steve jobs said, yeah, we have 10 styluses right here. >> let's get out to dierdre. here's a look at why they don't often last. what can you tell us? >> they don't, kelly, the stock suggests that big market rallies are followed by losses shortly afterward. using analysis, we looked back to 2005 and found 20 instances when the dow industrials jumped 350 points or more in a single session, like it did more than that yesterday. now, one week after such a rally, the gains are nearly era erased. on average, the dow lower by an average of about 2%. and the nasdaq has fallen on average by 2.8%. all three trade negative 50% of the time or more. two weeks out, the numbers are even worse. the major indexes have all traded negative 70% of the time and lost even more ground. in terms of sectors, what goes up must also come down during these big dow rallies. financials is, by far, the best performing sector. gaining an average of nearly 10% in the session. that's on an average basis. but, two weeks out, not so hot. the sector falling back down nearly 4%. so, guys, a quick relief rally may provide just that relief in volatile markets. but history suggests should come as no surprise that gradual gains are probably more sustainable. back over to you. >> think that's a fair point, dr. j.? >> yeah, i do. what i'm looking at with selloffs like this and how quickly we turn around, as she was saying, giving it back, i think it's, again, churning more than it is, okay, after that big selloff, were we down 10%? no, we gave back that and then we're down 2%. so this backing and filling, guy talks about this all the time. but we get down to technical levels, that becomes support or resistance. support to the downside, resistance to the upside. today, we got right up against that upside resistance, pierced through it and came right back and now it's overhead again as resistance. i'm not surprised we do this backing and filling, and i think we continue that until next week, the 17th. >> yeah. >> by the way, to guy's point about volatility, the vix expires wednesday, the day before. so all of the protection people have, they've got to replace if they want it ahead of the fed meeting next week. >> if you're going up that much and down that much many one day, it's not fundamentals. not that much changed between 11:00 a.m. and noon. >> except for the apple pencil. >> and the tv. >> there was a lot in there, actually, to be fair. let's get to an earnings release. dominic chu has the numbers. >> box shares right now up just about .5%. it was up more in the aftermarket session on about 19,000 shares of volume. this after the storage cloud computing storage company reports a loss per share of 28 cents. analysts looking for a loss of 29 cents. revenues beat, looking on average $70 million. also, offered stronger current quarter and full-year sales guidance. those shares were up about 3%, maybe even perhaps a little bit more early on. they've given back some of the gains. they're down about 1.75% on 26,000 shares. and then on the cyber security side, palo alto networks right now shares trading up by about 4% on 124,000 shares of volume. that beats the average estimate at 25. sales come in at $284 million handily beating the $256 million average analyst estimate. they also offer strong current quarter and earnings per share guidance. so, again, those shares up on that bit of news. and i'm going to give you one for a bonus here, kelly, krispy kreme donut down 11% right now and 47,000 shares worth of trading volume. this after krispy kreme reports on a miss. 15 creents, looking for 19 cent. and they offered relatively weak full-year earnings guidance. so, again, the trifecta of downside, i guess, a miss on revenues, a miss on profits and the outlook. krispy kreme shares down on that news. lighter relative volume. back over to you guys. >> all right, dom. thank you. be sure to tune into "closing bell" tomorrow because box co-founder aaron levie will join us to talk about those earnings numbers. guy, i'd love your take here. >> get me to the middle one. palo alto networks, krispy kreme is not a place i traffic either in terms of the stock or the restaurant. but palo alto's a name we've been talking about for a long time on "fast money" and along with you. i think they are the best company in the space and probably the most interesting space going right now. i know the valuation is through the roof. probably trades north of 100 times forward earnings. i also know it's an extraordinary well-run company. i think this quarter was outstanding. revenue beat by about $30 million. i think people are going to chase this quarter. if the tape can cooperate a little bit, i think we re-test that all-time high a few weeks ago. >> last word, walt? >> well, i think box has a good product and good ceo with aaron levie. and i think that whole space, including drop box, which is a separate type of business model, but generally in that space, a product that i use. so i think you're looking at fundamentally good products, which is why this is going up. >> and that's been up for debate. >> but again, an interesting one in that regard. thanks, everybody. for now, be sure to stick around and catch more of guy coming up. thank you, guy. and we've got the latest details from apple's big event. later, could marissa mayer's job be in jeopardy if the spinoff doesn't happen? you're watching cnbc, first in business worldwide. w jansport b, a powerful new dell 2-in-1 laptop, and durable new stellar notebooks, so you're walking the halls with varsity level swagger. that's what we call that new gear feeling. you left this on the bus... get it at the place with the experts to get you the right gear. office depot officemax. gear up for school. gear up for great. welcome back. we begin here with dominic chu and a market flash. >> according to bloomberg citing sources, we have conway a trucking logistics and freight company. and possibly getting near a deal to be bought by xpo logistics. now these are two mid-cap companies, worth about $3.2 billion. conway also worth about $2 billion right now. again, for a cash deal. bloomberg, again, citing sources saying it could be xpo, buying conway for an all-cash deal here. that's what's moving the shares higher. conway shares up by about 36% on relatively heavy volume, about 303,000 shares. so, again, we'll keep an eye on that for any additional headlines. it could be another big deal on the freight trucking and logistics side of this particular business, kelly. back over to you guys. >> all right. thank you. now, turning our attention back to apple unveiling several new products today including that upgraded iphone and larger ipad. josh lipton is in san francisco with those highlights now. josh? >> well, kelly, you know, apple's stock recently under pressure, some investors concerned about whether apple is going to be able to grow those iphone units in the quarters ahead. but ceo tim cook taking the stage clearly not worried. talked about how the 6 and 6 plus were the most loved phones out there. and also introduced those new phones so the 6s and 6s plus faster, new touch i.d., pressure sensitive display. colors, cases, those phones start at $199 and pre-orders begin on september 12th. cook also did introduce a new ipad called the ipad pro. take a listen as to how he described that tablet on stage. >> ipad is the clearest expression of our vision of the future of personal computing. a simple multi-touch piece of glass that instantly transforms into virtually anything that you want it to be. >> now, this new ipad pro, kelly, 13-inch display keyboard also a stylus called the apple pencil begins at $799. clearly apple betting a lot of companies will want to buy this tablet for the workers. and when you talk about that space, that's where the growth is right now. not with consumers but businesses. and from the office to your living room, tim cook also unveiling apple tv. says this is the future of tv, more powerful hardware, new operating system, and also, remember, the chance for these 11 million registered developers to get to work and design apps for your living room, apple tv beginning at $149. financial analysts don't see the tv as having some big material financial impact, at least in the near term. that doesn't mean it's not important. it is strategically. it builds loyalty among users and attracts new users to the ios platform and maybe sets the stage for that much talked about web tv service we're hearing about. back to you. >> for now, josh, thank you. joining our panel now, you're a shareholder in apple. shares were down 2% today. what did you think about the announcements? >> you know, it wasn't a new product that we saw with the apple watch and what they did last year with the event. so from a 1 to 10, i kind of rank it like a 6, 7 for me. but what i am excited about what josh just spoke about was the apple tv. the updates they're doing are having companies like zillow and air -- you could also shop. >> we'll have to take these piece by piece because there's so many of them. why would i want to do that on my tv with a little tiny remote with a touch pad thing? i mean, when i could do that on my ipad or on my laptop or what have you? >> well, you know, you're probably like me where i hate commercials. what do most people do during commercials? they switch on and off. the tv is something we're spending a lot of time with. most of the average americans spend most of their time in front of a tv. now that we're coming into our home, if you want to take it piece by piece, there's the gaming aspect, the shopping aspect, the information aspect, the music, apple music. there's a whole -- there's a whole bumpnch of layers. already on our car, wrist, everyone's got an iphone or ipad. and i'm really bullish about the updates and the future of apple tv and the stock in the long-term. but in the short-term, i don't know about that innovational piece of that new product that has blown people away like they've done in the past to be honest with you. >> walter? >> i think you want to put this in historical perspective. i think invading the living room, doing the tv is important because it touches on two big things happening right now. one is the unbundling of the cable tv model. when that happens, that's when you see the final piece of puzzle come into place, which is the content. to be able to get the content so i can say, you know, put on the "tonight show," or put on this particular show. and it'll just come up because you've got deals with the content dealers. the second big thing that's happened for the past eight, nine years in the economy is the app economy. and once again, this ties into that. so i think the upside here is huge. it's a living room, it's an economy, and it's part of the whole on demand, get what you want on tv whenever you want it instead of having it cable bundled. >> this aspect of its product fleet as opposed to the upgrade to the iphone, you know, the new enterprise ipad and tools that came out around that. the new watches. i can't remember everything when they just announced. >> i thought the biggest things were certainly as walter addresses with siri and the integration of the television, that's great. but i really liked, though, the forced touch they call it. because that's one of those things that just like when you get a watch and you have to flip through five different things to get to the calendar or whatever, being able to skip steps. that's what that display and forced touch allows you to do. so you just hold your finger on there longer, and you can flip through and basically skip steps instead of having to flip through screen after screen as you're trying to get through. whether it's on something as small as a watch, which it was already there, or whether it's now on their phones and their ipads. that's, i think, a cool factor and something android users are very used to that could win them over to apple. so any time you can steal android users over to apple, that's a win for apple. big win. >> you agree? >> yeah, don't forget, going back to walter's point. don't forget the millennials, they don't watch tv like we used to back in the day. they don't have cable tv. so a lot of the streaming that walter did mention on the con at the present time. the content's the play. i'm also looking at apple acquiring video content companies in the near future. you're going to see them do more acquisitions to really promote the whole tv side on where they're going. don't forget, this is a big content play for the future in laying down the groundwork. >> yeah, i don't want to get into this but it's important for everybody to know that the con at the present time co content costs are going to be significant. if i want to be able to watch my favorite programming, i'm going to have to, if i'm apple or the streaming players do deals with a lot of these local tv netwo s networks, and that's not going to be easy or cheap. >> it's not going to be easy. and when steve jobs did it with the ipod, the itunes store and then just browbeat the seven music labels saying you've got to be in, that broke up the album just like we're breaking up the cable tv model. it was difficult, but that's why he was a real genius. he was able to tackle difficult things. and apple has been doing that. >> if anyone, great point. we'll leave it there. thank you. appreciate it. united ousting its ceo amid a federal probe. we've got the latest details next. and later, what chipotle's hiring blitz says about our economy today. plus that strong openings report. we're back in a moment. and . . . exhale. . . aflac! and a gentle wavelike motion... ahhh- ahhhhhh. liberate your spine... ahhh-ahhhhhh......aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just one day. ahh! so he had your back? 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[duck snoring] wait a minute. >> unbelievable. >> you're telling me, everything -- hold it up. >> looks like -- >> autonomous driving comes from this? >> the first implementation is going to be this year, with five iq3 trips. eight cameras on the vehicle. and this is the first, they say, set-up that almost ready for fully autonomous driving. >> that was chief executive on squawk alley showing off the chips designed for autonomous vehicles. ci citron research is disputing that saying insiders are stamping out stock at a rate at which we've never seen. part of the company's gross revenues. compare that to go pro at 39%, netflix, down at 1%, that citron report sending shares of mobileye tumbling. one of the nation's largest airlines undergoing a sudden ceo shake-up. let's get the latest from phil lebeau at the top. >> there are really two stories regarding united airlines. one is the new ceo, oscar munoz. and we'll talk about him in a little bit. but the other story getting chatter today is the executive shake-up, including the ouster or the resignation of former ceo jeff smisek. he stepped down unexpectedly yesterday. their resignation comes after a united investigation as well as a federal investigation, two separate investigations into what took place between jeff smisek and some of his top executives and the former head of the new york, new jersey, port authority. remember, there were lease talks going on between united and the port authority back in 2011, regarding the united hub at newark. the route was added between south carolina and newark, a route that where they only flew on thursdays and mondays where people started calling it the chairman's route. and then, you had flights ending after the former head of the new york and new jersey port authority resigned in 2014. so because of that investigation or those investigations, and we're still waiting to find out exactly what happens with the federal one, jeff is out as ceo at united. he's been replaced by a board member who is now the ceo, oscar munoz. he takes over, prior to this, he was the president and coo of csx the rail giant. he's been on the board since 2010 and to continental board before that. yesterday, after his elevation to the ceo job, he talked with analysts about one of his top priorities, which is focusing on customer service. >> my job is to stop all this conversation, concern and worry and lack of stability or concern about the future. and that only happens by direct and personal outreach. and that's where i'm going to spend a lot of my first 90 days. >> the focus on the customer is going to be a big part of what oscar munoz is trying to repair at united airlines. yes, the shares moved higher at the end of the day, kelly, but only fractionally higher. i've talked with a number of analysts and a few other people within the airline industry and almost everybody said the same thing. we don't know a whole lot about oscar munoz, but let's see if he can affect change at united. this is a company that operationally and on the profit side could be doing much better relative to its peers. and that's going to be the focus wall street will be looking at within. >> yeah. and phil, stay right there, if you would. our phil lebeau. walter isaacson on the united board. how long has this investigation been going on? >> i hate to say it, but i can't talk about that. i can talk about oscar who is a wonderful person who has deep experience in both the transportation sector, consumer products, was there at pepsi and coke. as you heard him say both on the analyst call but in a wonderful memo, he said to employees, he's going to focus on customer service. he's going to focus on being innovative. he has a reputation, a great reputation for being innovativi. >> is united itself under investigation? >> this is something i'm not going to go down -- >> i know -- it's public and not public. but it was just so shocking for people, especially that had a cfo leave and i think go to paypal or something like that recently, and now the departure of these top executives, many people wondering, again, what's the back story? and how much of that can you tell us at this point? >> i think right now, the real story is focusing on a guy i've known for quite a while. >> oscar? >> oscar. >> and the people he's going to bring in. and the way he really is good at working with people, he said he's going to travel around for the next 90 days to focus on the customer, employees, all the stake holders. and i think that's the real story. i'm sorry i'm not going to be able to go into a backstory. but you understand better than anybody why that's the case. >> dr. j.? >> yeah, the chairman's flight, that's the issue. the fact that he, munoz may be able to deal with the unions as well as the customers better, that's a big positive for united. but for me as an investor, kel, i won't be that enthused about this until the investigation as to what happened with the port authority. >> right. >> what went on there. until that's over. i've got other airline stocks i can trade. >> kelly, if i could add. there's no time line in terms of when the fed's may conclude their investigation and what might ultimately happen with the former head of the port authority or some of the other executives who are involved in this investigation. but should tell you that what dr. jay said there about how he's, perhaps, being a little bit cautious regarding united, it's not just this investigation. when i talked with analysts today, almost all of them said the same thing, which is, there's been so much turnover at this company, and there has been such a long stretch of underperformance, they want to actually see a few positives come forward. over the next six months, eight months, where they can say, okay, oscar munoz is having an impact here. until that happens, a lot of people say the same thing. sleeping giant, could be doing better, but we've been waiting a long time for it to do better. >> before we go. walter, want to add any comment to that? >> well, i think that's what his focus is going to be. he said it in a really good memo. i think that somebody who has been like he has on the board of united and before that continental for ten years knows every single number, arrival and departure, delay, things like that. he nose the business extraordinarily well. but he's also been in a telecom business, innovative businesses and in consumer businesses. he's been knowing how to run a transportation business. >> yeah, and he's running a big one now. phil, thank you so much. time now for a cnbc news update. let's get over to sue. >> here's what's happening at this hour. the u.s. military deploying two unmanned predator drones to latvia as part of a training mission. it's the first european country to host the military drones. the pentagon says it's all part of an effort to reassure european allies that the u.s. is committed to their security. four people were injured, two seriously when a hangar collapsed this afternoon. the accident happened as the hangar was being dismantled. no aircraft were inside at the time. the house judiciary committee holding a hearing to examine the practices of abortions at planned parenthood facilities. videos that abortion opponents say show planned parenthood profiting from the sale of fetal tissues. stephen colbert's late show crushed the kcompetition. easily beating the "tonight show" and jimmy kimmel live which was seen by 1.75 million fans. not a bad start. that's the cnbc news update at this hour. back to you, kelly. >> thank you so much. all right. shorting a stock that carl icahn made a big bet on. we'll get the clash of these two titans coming up. plus, the clock is ticking on marissa mayers now that there's major tax questions about the alibaba spinoff. you're watching cnbc, first in business worldwide. welcome back. here's a reminder of how we just finished the session on wall street. in fact, it was one that saw a sharp reversal of 440-point swing from the gains of the open to the losses at the close. the dow gave up 239 points or about 1.5%. the s&p gave up about 1.4, the nasdaq 1.15. crude down another 4%. breaking news on express scripps. >> we've got a board change. this is a large pharmacy benefits company. they are saying in a press release that they announced george pas will retire as the current ceo effective following the annual meeting of stockholders in may of 2016. the current president of the company, tim wentworth will take on the role of ceo. he will remain on the board as non-executive chairman. thomas mcmahnn will continue as the lead director. ceo, retiring from that role. staying as nonexecutive chairman. we've also got something for the record right now. earlier we told you about conway up big at a possibility that xpo logistics would take them over. we have confirmation in the form of a press release. xpo will buy conway merging two long trucking and freight companies in about a $3 billion transaction that includes debt as part of that particular deal. slated and headquartered in ann arbor, michigan. headquarters here in greenwich, connecticut. the european operations in leone. that deal coming to fruition, kelly, back over to you guys. >> thank you, dom. yahoo stock recovering after an early morning selloff. that on news after the planned spinoff might not be granted tax-free status. it's supposed to be a huge notch in the belt of marissa mayer who has come under criticism since 2012. joining us now is victor anthony. good to have you back, victor. >> thanks. >> and, listen, it's not clear what exactly happens at this point. but what's your best guess at whether tax-free status is granted to the spinoff? and how material is that to the decision made here? >> listen, i think ultimately, i think yahoo will proceed. they should proceed. with the tax-free spinoff. granted, they get their approval by the outside counsel. and dealing with any sort of consequences from the irs at later in time. i'm placing a bet that the irs ultimately, you know, not bill yahoo for roughly $8 billion or $9 billion in taxes at a later date if they were to go forward with the spinoff. >> what changes in terms of the current share price of yahoo, if this $8 billion to $9 billion bill does have to be paid? >> well, you know, if it does have to be paid at a later point in time, from what i understand from reading the filings, that liability really just falls w h with -- sort of, that liability really just shifts over to yahoo's shareholders rather than to yahoo. that's kind of in the fine print of the documents. and i think most of the investors have overlooked. >> and in the meantime, questions about marissa mayer here, especially if this doesn't get approval, or if the spinoff didn't happen at all. sounds like you give those a low probability. what does that mean in terms of your verdict? do you want her to stay as ceo of this company? >> i do think the tax-free spinoff was the corner stone of her tenure if it does happen. that would allow her to ride off into the sunset essentially unscathed, virtually unscathed because the core business is still struggling. to be fair, i've heard a lot of negative comments about her today. but to be fair, she did state when she first took the job that turn around at the core business will take multiple years, and that is the case. the core business is still struggling. i think she needs to pull off the tax-free spin to take some of the pressure off of her over the next several months. and that has to happen in my opinion. >> well, the years are adding up. three plus now at this point. victor, thank you. >> thank you. >> that's victor anthony. the latest on yahoo there. 4,000, that's how many people chipotle plans to hire today. up next, the company's national career day really tells us about the industry and employment across this country. at&t and directv are now one. which means you can watch movies while you're on the move. sitcoms, while you sit on those. and even fargo, in fargo! binge, while you lose weight! and enjoy a good cliffhanger while you hang from a... why am i yelling? the revolution will not only be televised. the revolution will be mobilized. introducing the all in one plan. only from directv and at&t. welcome back. chipotle is trying to put a bigger dent in the unemployment rate all itself. new details of this hiring blitz. what are you seeing, morgan? >> reporter: hey, kelly, that's right, chipotle's been on a hiring spree. opening restaurants including the one behind me three hours early this morning to interview potential candidates. now, here's the goal. hiring 4,000 new employees in one attention-grabbing day. a move that would boost the burrito chain's workforce by almost 7%. some of the hires are going to fill the roughly 200 new restaurants coming online for chipotle. many are going to fill positions at the company's 1900 existing ones. so why is chipotle doing this? well, the short answer, a tightening labor market. as the economy improves, more people go out to eat, fewer workers are applying for fast food, fast casual positions, and at a time when the industry needs more. so earlier this summer, chipotle beefed up the benefits packages, it extended college tuition reimbursement to hourly employees, increased paid vacation, added paid sick days and it's not alone. other fast food and fast casual chains including mcdonald's, starbucks and cheesecake factory. have been hiking they pay to attract workers and perhaps more importantly, retain workers. it can be so expensive to keep hiring and training new staff. so the question now, did chipotle actually drum up enough applicants today. well, the location behind me wasn't particularly busy this morning, though it did make on-the-spot hires today. however, the company says coming into this morning, 60,000 applicants pre-registered. chipotle's still counting those numbers. kelly? >> what a great story. morgan, thank you, hope you enjoyed lunch out there, as well. i saw chipotle, red mango. what do you make of this? >> well, it's important. we've seen wage stagnation. and if companies are having trouble hiring, you said in the beginning of the show, we're seeing it now, it would be very important for our economy, i think, to get middle class wages and for that matter, you look at walmart having a career ladder now so they can keep people. this is what we needed in this recovery is to make sure the working class, middle class got the wage increases. >> and i wonder if it was this report, the job openings report came out at 10:00 a.m. as jpmorgan put it, blew a gasket because it was so strong. the layoffs rate is at near record lows, you know, more people are quitting their jobs, which is a good sign. is that why the market started to get nervous? does it think, hey, if the fed has this? >> exactly. they're reading the tea leaves as you just did. saying the fed does have the room to move. i've said they've had the room to move for a year or more. i didn't think they would. we'll see whether or not september 17th, next thursday if they do. but it's going to be volatile up until then because we're going to continue to get the parade of fed speakers, one will say something one day and somebody else will say something the next. not that they have to be lock step, but ms. yellen could do us all a favor and come out and say, or just come out and do it before the meeting. say, here's what we're doing and it's done. >> before we leave chipotle behind here, take a look at a couple of ads accusing the company of saying it's all natural but not being anywhere near healthy. and i can tell you stories about friends of mine, oh, it's delicious, you put on a few pounds. is there a problem for the fast casual industry if people have started to realize, hey, just because it's, you know, a new chain that doesn't have to post calories doesn't mean i should be going here all the time. >> and these guys do post the calories, of course, it's law in new york. but they do it, i believe, in their restaurants in chicago and across the country. so -- >> do you eat at chipotle? >> i don't. >> do you, walter? >> i would, i just don't. >> i think it'll have an affect. i'm going, hey, i didn't really focus on this because i thought it was kind of healthy. >> we're fans of chipotle around here. >> there's a coffee cup there, and we each get to do a little thing. and i did einstein's theory of relativity in 60 seconds on a chipotle coffee cup. >> really? >> yeah. you can google it. >> the new battleground stock, the details on that one coming up. and he's known as a savvy fighter but also making smart investments. up next, urijah faber joins us. welcome back. ufc 194 is still a few months away but it's already creating plenty of xwuz. it goes down the night after the season finale of "the ultimate fighter," which begins its 22nd season tonight. joining us now is ufc bantamweight urijah faber, who's also one of the coaches on the ufc reality series. it's great to have you on the program. tell us how excited you are for tonight. >> i'm really excited. you know, it was a fun season. tough 22. it's the 22nd season. but i think it is probably going to be the best one yet. we had some great fighters and the coach on the other side was conor mcgregor who's a real character and he and i had a bunch of choice words and a bunch of drama. it's great tv. >> it's also great business. you've launched a number of different ventures. what has been most successful and most surprising to you in all of this? >> you know, i think the stuff that's related to mixed martial arts has been great. you know, my clothing line, torque. we have a management company and gym and building this team. the team has been probably the coolest thing because it's such a passion of mine. we've got some of the best guys in the world in team alpha male. and you know, parlaying everything into real estate has been cool. learning more about entertainment. but creating cultures. >> i was going to ask you, urijah, what are you doing with the dental shop? >> you know, we have a dental management company in sacramento that i've been working with. i'm really learning more about that. and it's been pretty cool. it's kind of a unique thing. i have to sit down and delve into the details. but i've been able to touch all sorts of different areas, and that's one of them. >> i thought maybe it's because if you knock out enough teeth you need somewhere to go fix them. just real quickly on how much the media landscape is changing. how do you consume -- how do you watch these fights, and what do you think is the most compelling place to do media deals right now? >> you know, in my opinion, it's a sport that's constant lly growing. i feel like every day is a new day for our sport. you can get it anywhere. right now on fox they're covering it from all over the place. there's a fight pass on the internet where you can watch a lot of the fights. documented way back in the history of the sport. you can see all sorts of different avenues for media. >> you'urijah, thanks for joini us. lots of admiration for what you do because i tried boxing once and it wasn't pretty. urijah faber. >> appreciate it. >> carl icahn's a buyer, jim chanos is shorting it. we'll break down the numbers on opposite sides of the cheniere energy trade when we come right back. this just in: 50 million customers' data was not compromised this morning in a security breach that didn't happen. wall street. not rattled. at all. no. not at all. not at all. i mean, look at the day. sir. sir. what went right? what went right? everything. thank you. with threat intelligence, behavioral analytics, and 6000 experts, ibm security will help keep you out of the news. my dad's company wasn't hacked today. cool. i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet? here at td ameritrade, they work wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. investor jim chanos revealing his latest short on cnbc today. it's cheniere energy. activist investor carl icahn had just disclosed a large stake in the company last month. will this be the next clash of the titans, kate kelly? what do you think? >> well, kelly, they're both outspoken investors. it's tough to say whether they'll actually duke it out directly on this one. no doubt that noted short seller jim chanos came out swinging this morning on cheniere on our very own "squawk box" calling it a looming disaster. cheniere has been the darling of the investment community or one of them in recent years partly thanks to its long-term sales contracts to foreign buyers of liquefied natural gas that obliged the buyers to pay preset prices almost no matter what over the course of, say, 20 years. this is a system known as take or pay. but chanos says the whole lng business on which cheniere is predicated and overcrowded and soon to be over capacity given the global demand for the product is no longer growing. and he says that take or pay contracts with now under siege with both china and qatar signaling that they went changes to the model. icahn on the other hand has risen to be the top holder of cheniere and despite demanding changes a month ago when he disclosed his current position he struck a standstill agreement with the company, promising to hold off on further activism there in exchange for naming two designees to the board. and kelly, he's not alone in terms of his long bias. it would appear that seth clarman of bal post one of the most respected hedge funds out there, post state capital's zach describer. and many others are very involved in the stock on the long side. >> i mean, listen, it's one thing to be the oil argument but lng is supposed to be one of these growth areas for years. >> it is. and sharif zuki, the ceo work argue to me or anyone who would listen really that they have these take or pay agreements, long-term buyers, spain and other countries, asia's a very strong market. but if chanos is right -- and by the way, he notes they're trading at 30 times earnings in 2020, right? it's pretty lofty. >> thank you, kate. thank you guys for being here. that does it for "closing bell." let's get right out to "fast money." "fast money" starts right now. live from the nasdaq marketsite overlooking new york city's times square, i'm melissa lee. our traders on the desk are tim seymour, pete narnlgarrian, karen finerman and guy adami. tonight on "fast," marissa's last stand. the tax-free spinoff of alibaba up in the air could ceo marissa mayer's days in the front office be coming to an end sooner than you i? plus apple just did mcsteve jobs said they'd never do. first to the market sell-off. the celtoff intensifying ending lower than

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