Amc entertainment says a lack of summer block bust earls hurt the bottom line in the latest quarter. Well talk to adam aron in a first interview about that and his companys merger plans. They have a lot of mergers. Breath taking is the word he uses to describe this. Tesla reaching that deal to buy solar city. Well look at what it means for shareholders. Lets start, though, with oil. Big mover today going lower. Yak i can deangelis tracking the action for us at the nymex. Good afternoon to you, bill. We settled higher than 40. But we did get down to 39. 82 and shows the momentum is there. 40 is a key psychological and Technical Support of oil prices. Lets see why we rose and why were falling particularly so early in the season. The demand for summer driving gave us an uptick. We got up to the 50 range, the dollar supportive. Everything seemed fine. On the downside, why we fell is because we had a crude inventory glut that created a gasoline glut and profitable to create more product and thats what the refiners did. Of course, concerns about china and europe and the demand over there and concerns to see the summer driving now go down creates a situation where we have got a simple supply demand story. The decline as i mentioned is happening earlier this year, this seems to be creating a little bit of concern in the marketplace, a little bit of panic here. Thats why the momentum is so strong. Technicals indicate that once we break the 40 level and hold we could get down to 36 a bashl. Thats the next support. But remember, its not always a straight line. Theres two key takeways here. Gas prices are very low for this time of year. 2. 13 is National Average according to aaa and some are saying, bill, 2 by labor day. 1. 50 by christmas. That would be substantial. Flip side, youre talking about this all day, the fact that when we see Energy Prices go down, it hurts big oil. When big oil suffers, that trickles down into the broader stock market. Back to you. Road trips all the rage this summer. Oh yeah. Loving the low my guys, i was telling you, paying 1. 87 right now and i expect it to go lower. I know hes watching. Will it, jackie . There was a spread still between the gasoline and the oil price and is gasoline moving lower here . Answer carefully. Probably will. If crude cracks the 40 mark and holds, remember last year we saw all the way from 60 down to under 40 and then in february we were down to 26 a barrel. If you get a monumental move like that and dont see a demand shift the gas prices suffer and 1. 50 is a gift by kris ms. That would be fascinating in terms of finally help more than it so far hurt some sectors of the economy. All right. Thank you. Sure. Thank you very much. Now, our wilfred frost sat down with jamie dimon earlier. Wobbles in prices to me are not a reason that we would do something different. Obviously, customers in the oil business, it affects them and probably like to see more stable oil price. I wouldnt overreact. Im not even sure the gdp data is accurate anymore. What we see is more household formation, more people buying homes and jobs. Those are all good things and keeping the economy growing. I wish it was growing faster. Im not a buyer of 10year bonds and i would be worried about drastic action in the 10year bond. The more important thing and the fed talks about it is are we have proper growth in the United States to start to normalize Interest Rates and think of the short end. 25 basis points doesnt matter much and talk to normalize, is a good thing. The next president focuses on the right things, i think we go to 4 . A lot of ways education, that we can make the country boom and focus on that and not just pointing fingers and being mad all the time. America should look at what we do well. Our future is unbelievable. But its not a divine right. We dont have a divine right to success. I agree with a lot of politicians saying we have serious issues. We do, immigration, infrastructure, income inequality. Lets get together, collaborate and fix the problem so that beautiful future we have is the one we accomplish. He gave us a lot to think about there. Yes. And i have to say, though, i have the greatest respect for jamie dimon but even if the gdp numbers arent going your way to say you dont believe theyre that accurate anymore. I love that he raised that. I think that goldman, for example, digging through and productivity, why is it that the jobs numbers is strong and gdp is weak . Were only going to know in the fullness of time. He did raise the point. I hear you nodding, Rick Santelli. I know what youre doing over there. Lets get to the exchange today. David wadell, peter kosta and theres Rick Santelli in chicago lar chicagoland. Peter, this narrow range for the market continues. Narrowest since 1970 somebody pointed out the other day. I think that 2160 or 2159 on the s p is like a baseline again and i think we have bounced off that about 6 or 7 times in the last 2 weeks and i think thats going to continue. I mean, it just theres not really anything thats moving the needle to make people jump in and with both feet. And theres not anything out there thats telling you i got to get out of the market and goldmans commentary this morning might leave you, you know, to start thinking about reassessing where your money is. But i mean, you know, overall, theres not a reason to do one thing or the other unfortunately. Havent heard goldman downgraded global stocks this morning. For three months or something . That might have been a separate call that looks more short term and echos by the way Jeff Gundlock saying get out of everything as the s p tests new highs. What are you advising . Well, i think the goldman call is kind of weak talking about three months and downgraded to neutral and basically they said was were in the summer doldrums to echo peteres point. Gundlock is a bond guy and always sort of praying for a catastrophe. Wait a minute. Just, david, the duration in the flagship bond fund is shortest of its 2 1 2 or something and you have others in the space who are at 6 1 2 and put his money where his mouth is and thinking that bonds are such a great buy at these prices either. Right. So the longer duration people won so far this year, right . Right. He got his duration short and that me thats somewhat appropriate but that assumes and i know you have rick on here, too, Interest Rates are going somewhere. I dont think Interest Rates are going anywhere because i think the fed is in the dollar business, not the Interest Rate business and they need to keep the dollar low relative to other currencies every time it spikes its some sort of global panic. And so, because Interest Rates are going to be anchored, the valuations across the market go to levels that nobody really expected before. I mean, everybodys getting nosebleeds around utilities and telecoms and can now spread to the entire market and the economy is wisha washy and earnings and plenty of room to run on multiples and doesnt make me comfortable but a mathematical fact. Rick, what is your thought of what he was saying there about Interest Rates anchored . We have talked about the past the feds thumb on the scale and the impact, right . Yeah, no. I think david nailed it. Theyre in the dollar business. Spot on. And, you know, we could tie it with jamie dimon and not buy bonds. I would be interested if hes interested in selling bonds. Really, thats the burden of proof right now. I think we could see these yields quite a while. I dont see mario draghi, any of these, carney, giving up. Theyre not going to give up and i dont see highquality sovereign coming out of the woodwork anymore. Its going into institutions. Theres a huge need for it. And its the currency of margins. As for gdp not being important, bill, you nailed it. If it was 6 , its darn important and i guess, you know, Jpmorgan ChaseSecond Quarter net income 6. 2 billion and jamie doesnt need growth. He is a great american. He is a great banker. I get it. But status quos doing okay for jamie. And i think theres a little political whiff in there because only one of the candidates is pushing status quo. Rick, is it possible that at some point to look back and say, you know, the gdp was better than reported which would be consistent with jpmorgan doing okay in this environment . You know, of course, i expect to see revisions but its not revised. We currently have a two quarter average 1 . If everything goes great maybe closer to 2 . Weve been there, done that all the things jamie talked about, everybody understands that. So whys the average guy having a hard time in thats what matters, plus the average guy only has three or four banks to choose from. Before we go, peter, youre still in this market, arent you . Yes, i am. Buying anything . No. I mean, you know, i have a little invested, little heavily invested in financials and i think play out nicely but again you have to look at the way my investment time horizon is six months to a year to three years so i have time to make a good decision. Is that the old definition of a longterm definition is a shortterm busted trade . I like to think im a mediumterm investor. All right. David, very quickly, before we go, what are you buying . I assume youre not throwing darts here. No. Of had their day. Sives havin i go back to the markets rising and beta isnt with it at all. So small caps seem to have a bid. Emerging markets, internationals. The things you would expect to rise on a rising market that failed to over two years. All right. Thank you, guys. Pr david, peter, rick there with aboutthe session. The downward move in the price of oil putting pressure on the markets. The dow down 30. S p down about 3. The nasdaq still up 21. Elon musk gets what he wants as tesla buys solarcity for 2. 6 million. We have delal tails on the controversial buyout and the impact on teslas stock coming up. Also ahead, dont miss our special report on why sequels are no longer the sure bet for hollywood they used to and the ceo of amc weighs in. Youre watching cnbc. [chains dragging] [eerie music playing] [crickets chirping] [owl hoots] announcer if you dont fix them, sparks from dragging tow chains can cause a wildfire. And that could be scary. Bye, smokey only you can prevent wildfires. Gain the freedom to fumble with the new water and shatterresistant Samsung Galaxy s7 active. Exclusively at at t. Welcome back. Take a look at the bio tech stocks today. The nasdaqs ibb up 1. 5 and climbing for the fourth consecutive day and the eighth positive session over the past nine. It is still down this year and theres been a stealth rally in the challenged space, bill. Check out the other movers. Biogen and ionis pharmaceutical climbing. Showing that the drug to treat a deadly muscle disorder in infants, met the goal and stopped the trial and gave all the participants the drug. They plan to seek approval and commercialize it globally and paying a 75 million licensing fee to that end. Ionis is eligible for tiered royalties on potential sales of that drug. Elsewhere, Diamond Offshore lower despite a beat. The drilling contractor says an impairment charge caused expenses to double to just over 1 billion in the Second Quarter and analysts say that the Company Faces an oversupply of offshore rigs in a Falling Oil Price environment. Sound familiar . Oh yeah. Elon musks tesla motors buying solardy s solarcity. Phil lebeau looking at the controversial deal. Phil . A reason were seeing shares of solarcity trade lower is some people originally with the bid made in june to come in between 26. 50 and 28. 50. Looking at the deals of allstock deal that they have now reached a preliminary agreement on, it works out to about 25. 37 per solarcity share. And again, the original estimate was 26. 50 to 28. 50. The financials have people arguing whether it makes sense but in terms of strategy, elon musk says, look, look at this over the long term making a ton of sense in his opinion. It is touting one stop clean energy. Essentially you go into a tesla dealership. You get the electric car. Sign up the power wall unit and then have the solar panels on top of your house. He believes that is going to be a very successful Business Model over three to five years. In terms of what we can expect from solar energy and people adding solar energy to their homes and in society, he thinks we are just on the cusp of some very optimistic happenings. I think theres a prosperous future here for both utilities and Rooftop Energy providers. And everyone wins because this is a growing pie. He went on to say a rapidly growing pie. Over the last year, you notice over six months in tandem trading. Solarcity with the a 45day go shop option and can solicit other bids and they can go with that one. We may not see a higher bid and in that case, many believe that well see this deal close in the fourth quarter, at least thats what tesla believes. They said that on the Conference Call today and no short and of people chiming in saying financially this makes no sense at all. But elon musk has heard this for sometime and he still says that this is the strategy that works, certainly with his master plan. Exactly. Phil, thank you. Thank you. Lets get more analysis of two top analysts. Here is James Albertine and next to him is colin rush. Colin, what do you think . I mean, given the timing of the deal, it just feels like tesla bailing out solarcity. Does it make sense to you . I agree with phil. We dont like this deal in terms of return on capital for tesla shareholders. We think theyre running into a challenge from financing standpoint and they have an issue with the Sales Program seeing what they did with guidance today and for us we are not a fan of this deal. We are very bullish on solar as well as the opportunity out here and not convinced this is the best use of cash for tesla. James . I agree, actually. At the end of the day, they have a tremendous amount to overcome with respect to the model 3 launch. The production line as we understand it hasnt broke ground yet. To take this on begs questions around Capital Infusion and needs and where they get that capital. Would you expect anything different from elon musk, though . Youre an automotive analyst. Does this complicate your ability to assign a valuation for them . It does for tesla for a few years. I think at the end of the day, you know, there is quite a bit of disruption that needs to happen in the energy market. The utility, Power Generation and Power Distribution grid needs to be upgraded. Tesla stands as good of chance as anybody to disrupt that. From our perspective, if the automotive model works and the model 3, it renders the conversation perhaps moot. Whats wrong with solarcity . I dont think theres anything wrong with it but the Operational Efficiency and the return on capital opportunity for the platform. When you look at the utility industry, we are not seeing the growth that elon talked about. Low single digit growth for sales and regulated return on capital. Looking at 8. 5 return for utilities and not what theyre looking for an equity position. Do you buy the strategy here . I dont. I think they should be separate companies. Teslas bringing more to the table. We think theyre bringing a lot of expertise of Power Management and the key of Energy Storage in the grid in an i feeffective wa. Are you using, can you use solarcity equipment with a tesla . Yeah, well, i think an interesting point not discussed enough is over the last few years people asked what happens at end of eight years when the batteries come off warranty . That is a lot of scrappage. The energy demands are different for storage or a solarcity play and range day in day out consumer automotive plan. So let me make sure i understand you. Batteries go off warranty eight years after you buy the car and then you are able to or incentivized to do what exactly . If youre a tesla car owner, you probably get a new battery. You have a supply of batteries still useful for Energy Storage and reduced the need in other words. We have to go but a little every time i talk to anybody about elon musk, a little voice says maybe we are underestimating this guy. You know . Hes clearly a visionary of some type. Right . Great entrepreneur. Are we getting him wrong in this case . I think from a strategic standpoint in terms of Consumer Experience he is probably right. Im talking about the financial returns and discipline that the company demonstrating it is not taking that in to consideration. What do you think is the difference between a tesla only return on capital for the next whatever period 0 of time versus combined return on capital . The cash generation off the platform is 20 to 25 plus for tesla versus lucky for high Single Digits combined. Thank you. Thank you. Were heading to the close. 37 minutes left in the trading session today. It seems like every single day the trading range is the same. Today the dow is 110. Echoing the narrowness. Staying right there. But up next, the ceo of Amc Entertainment with the take on the summer block office so far and the sweetened bid. Why verizon is buying a company of fleetmatics. Thats coming up on closing bell. Markets a bit lower. Look at etsy up after citi initiated coverage of the marketplace stock with a buy rating and a 14 price target. Its at 11. 80 right now. The analyst at city si said it far too conservative and he sees good prospects for Margin Expansion down the road. I feel like psychologically the better it does and could unlock that pipeline. Many watching it as an example of one that struggled. Sequels now a thing of the past itself . Julia boorstin is here to take a closer look from los angeles. Hi, yulia. Reporter hey, kelly. Sequels are no longer a sure thing. The box office is down 26 from at the same point last year. Now, some sequels like this