Today. An accounting issues. Well have the latest details and what it means for the future coming up. Also, etna following uniteds lead and announcing plans to pull out of most of the Obamacare Exchanges this its involved in next year. And will that lead to big price increases now that theres less price competition at those exchanges . Well hear from the ceo of a major insurer whos doing pretty well in obamacare. Thats coming up here. And financials have really missed out on the recent record rally but is now the time to bet on the banks . With more hints the fed may raise rates again. Oh, by the way, a big move by an investor into one of the banks. Well hear from both sides of the debate coming up. A lot to get to. Lets begin with the markets pulling back from yesterdays trifectas. We put it. Closing the Closing Bell Exchange today, Michael Robinson of money morning. Com, ben willis of princeton securities and rick santelli, if its tuesday ric t rickster is back again. Hey, ben, so bill dudley seems to suggest he says a rate increase in september is possible. Always like that guy. Does the market believe that . Or, does the fed have enough credibility that the market believe that is or not right now do you think . I dont think the fed has any credibility. You have to lean on people like dudley and commentary lock hart, nonvoting member. The u. S. Economy may not be performing to the standards that most people grew up with watching, greatest recession of all time and recovering nonetheless. Theres Inflationary Pressure and anybody thats paid a Health Care Premium recently understands the idea of inflation in the pocketbook and the inability to pay the obamacare bill. So that being said, the u. S. Economy is doing just fine and it should let rates naturalize. Its not a tightening. It is just naturalizing. Interesting thing, rick, i want to go to you next, is whats happening with the u. S. Dollar today below 95. What is going on here . You know, i think that many of the issues that are moving currencies like the yen are counter intuitive and look for them to continue and of course, creates a very strange dynamic that a country so heavily laden in debt with a homogenous society and a demographic time bomb and malaise they basically have an export issue with that strong currency and continue to monitor that. The chinese currency also has been moving relatively aggressive against the dollar. Part of thats self inflicted. But i only mention it because i think theres also a correlation there with some of the money market reforms that will be hitting on october 14. And how it affects libor and core lated with the dollar scenario. I think all of these things in Foreign Exchange you focused on are integral to the whole correlation and corollary of Central Banks are doing and the readjustments to occur with the wild fx movements filtering into the Interest Rate and strips and stops and financial structures isnt going to easily be reversed. The feds waited too long and much of the perm feint damage of renormalizing the abnormal is here to stay. Michael, we all agree that this stock market is dividend crazy. Just loves dividend yields these days. What would happen to this market if the fed, in fact, did start to raise rates again in september . What do you think would happen . I think it wont have that big of an impact. They went go from here to 5 tomorrow. I think the market is priced that there n there and i do think dividends for yield and a safety play at a top market. By the way, i think the market is basically healthy. I like the fact that its only up 1 over the last 30 days and not looking at an exhaustion top. Dividends are good but i would have the flip side, i would be looking for stocks with massive Earnings Growth way, way over what the u. S. Economy is doing right now. Like . If only we knew what those were, right . Do you have examples . I have an example. Invidia. Earnings up 56 this quarter over a year ago. This is a consistent earnings gainer, a massive growth. They are the goto firm for graphics processing chips and integral to artificial intelligence. Deep learning. Virtual reality. They have a new headquarters on a vr headset and a play on autos and like a hightech etf in a graphics processing company. Okay. Ben, let me go back to what you were saying a moment ago with the comments of bill dudley getting the fed minutes tomorrow and one of the bond shops saying how could they be more hawkish than dudley . I guess thats why rates are moving up here but the behavior of the dollars seems peculiar to me. Can you help us make sense of what is going on . I will try and asking all day and quite frankly i believe the dollar effect right now is purely based on the sterling move with the idea once again the unexpected Inflationary Pressure in the United Kingdom prevents the brexit from lowering the rates the way they wanted to which, again, i go back to the last time i was on talking about how the normalization of rates is happening defacto as the other current sys around the world under pressure and the Central Banks are lowering standards. Its effectively allowing the u. S. To raise the rates and something that the Federal Reserve is looking at. Our rates no, maminally higher. I would look at what happened with the currency and sterling overnight. I think single biggest factor and trying to understand this tape ill give you a stock. Worst loss in their history and they cut the dividend 77 . Bhp. The stock up today. Wow. That should explain wall street to you. Found a bid somewhere. Hey, before we go, do you think treasury yields hit bottom for a time being . I think they may be go lower. Rates are up today. We havent closed above 1. 59 yield since the brexit vote. They have been compressed. My feeling is usually when a market like fixed income compresses the way it does, i wouldnt go against the trend. We all know which direction that is. All right. Very good, guys. Good stuff. Thank you for joining us today with your thoughts on the markets. Now to one of the biggest losers of the day and it is not bhp. We have established that. Hain celestial after releasing a delay in the earnings report. Susan . Delaying the release owing to accounting issues and looking into their internal audit controls which has investors thinking what other problems will be found . What are these accounting issues . Stem from concessions to certain u. S. Distributors they use and whether you count the revenue when products are shipped to you or when the distributors sell the goods on to customers and the maker of earths best organic baby food and juice now has until september 13th to file the report. Separately, also said that its Fourth Quarter sales and profit missed the guidance and also weighing on the shares today and should be noted that earnings and accounting are two separate issues here. A number of brokerages this morning downgrading the stock except jp morgan reiterating its outperform call and speaking to the ceo simon and he said that earnings may or may not have to be restated. And confident that the accounting issue will prove to be isolated and Something Else to keep in mind, by the way, hain said the total amount of revenue ultimately recognized should not be impact add enthe market calling for 2. 9 billion in the year. Back to you. The argument shifting from one period to another, though. Susan, seems by the reaction in the stock that investors were caught quite off guard and alarmed about the developments even if the analyst you mentioned isnt yet. Yeah. They were. Its twopronged event, right . You have a Fourth Quarter miss coming to earnings and the accounting issues and people are thinking how many more quarters will have to be restated. I wbt to highlight something that the ceo simon mentioned to jp morgan because they asked him, people thinking youre stuffing the channels here. He said its very hard to ship beyond end user demand because of the Automatic Systems in place. You want baby food, cold pressed juice and do that on the internet, there are checks and balances to account for these on whatever app for whatever program youre ordering it on so he says its very difficult in 2016 to do that. Especially given the perishable nature of the product. That, too. Thank you, susan. See you later. All right. Keeping an eye on those shares. Heading into the close and pressure across the markets, of course, off record setting days for all three mayor averages and the weak dollar not doing much to stop the you from dropping. S p down 8 and nasdaq down 24. Etna dealing another blow to obamacare. The latest developments and reaction from the head of a Nonprofit Health insurer thats staying with the Obamacare Exchanges. Doing okay. Well talk about what theyre doing that the profitable are forprofit companies are not doing right now. Two big banks and differing opinions. A vote of confidence and facing a downgrade. Well discuss the plight of these banks and whether now is the good time to put them on your buy list. Experience breathtaking lexus performance in streetlegal form. Get great offers at the lexus golden opportunity sales event. Get up to 5,000 customer cash on select 2016 models. Ends september 5th. See your lexus dealer. Welcome back. Shares of tjx down about 5. 5 today on disappointing profit estimates for the current quarter. The owner of the tj maxx and marshals chains blames wage increases and a strong dollar which eats into profits outside the united states. Tjx runs stores in canada, as well as the uk and australia. The company did report better than expected comparable samestore sales for the quarter that ended last month. Etna announced today its pulling out of nearly 70 of the counties of Health Insurance of the Affordable Care act or obamacare and far from alone. United health group and humana pulling out leaving blue cross and anthem on most exchanges. Joining us is a company sticking with the aca and patrick is the chairman and ceo of florida blue and guidewell. The fact youre a nonprofit, is that one of the big reasons or is it the big reason youre able to stay with aca where some of the big forprofit insurers are not . Certainly one of the dimensions. We dont have to solve for wall street and in this health care business, we look to produce about a 2 to 3 bottom line as a not for profit so its certainly a factor. Yeah. What do you think is going on with the big insurers pulling out of aca, patrick . I think one of the things thats interesting is relativity. First of all, united had about 500,000 members across the country. Etna had somewhere around 800,000 members. We in florida blue have 700,000 me believes all in florida. So were very concentrated. We understand our market intimately well. We created 20 Retail Centers across the state to really be very much based in the community and understand the needs of each of those communities. So i think the big nationals arent quite as in touch with the local markets and makes a difference. A problem for them is that at this point those who are in the socalled risk pool who would be eligible to buy into these exchanges are either sicker than had been feared so their costs will go up for the insurers and theyre also more price sensitive when they buy the insurance. Should we be surprised by that . You know, we were not surprised by either of those things. We put together a very thorough strategic plan. Weve been working at this for the last number of years. And we think we have executed that plan. So, we anticipated that people were going to be more sick because they hadnt health care in the past. One of the reasons we built 20 Retail Centers across the state is that when people come in and they actually sign up for coverage, we have care managers, nurses right there who can do a Health Risk Assessment of those members and web start to take care of them right away. We thought that was an important aspect to what were doing. We also created partnerships with hospitals, with doctors, so we have a lot of collaboration going on in our state. And i think that really is showing that we have produced better results than most players around the country. Does that mean that youre not having to raise premiums as much as others in a lot of these counties are asking states for . They say that a lot of times people are just signing up for the exchange when they need an expensive procedure done and then dropping out again. All of those types of things to keep prices low. What are you experiencing with premiums . Are you having to raise them a lot and competition, whos left on there . Froms still plenty of competition in our marketplace. Last year we had a singledigit increase. And so our rates are way below most players in terms of the size of the increase. I attribute that to the fact that we really are all over the state. I mean, in our total business, i cover more than 5 Million People in the state of florida. 700,000 of them in the Affordable Care act so we really understand our communities. Weve got enough size to have leverage in our negotiations. With the Provider Community and we have good, strong relationships there. So do we find that there are people who have risks . That are stronger or larger than other players . Absolutely. Right. We found that but we have been able to manage that. We have been able to stay in front of it. I got two questions but ive only got time for you to answer one and ask them both and you can decide how to do this. If you were running etna, not asking you to second guess any of those guys but the forprofit guys, what would you do different to stay in the exchanges and what should the government do to try to fix the problem for those guys or should they . Ill answer the second question first. Hows that . I happen to think that the government has a role for keeping people engaged in the marketplace. My broader issue would be, were not at a place to be trying to take the aca and get rid of it. I think we have 20 Million People who are covered. Our job now collectively should be how do we improve it . There are opportunities to improve it. There are taxes that have been delayed. I think those ought to be eliminated. We ought to look at how do we provide more affordable options so theres some changes to the aca that could be put in place that would be better for the consumer. My companys mission is to help people and Communities Achieve Better Health and as we focus on that, we no that we need to provide affordable options for as many people in florida as we possibly can. All right. Patrick geharty of florida blue, thank you for joining us. Thank you. You bet. 40 minutes left in the trading session here. A down day. Havent seen minus signs in a little while here. Dows down 60. S p right now down 8 and the nasdaq seen consecutive gains in record territory down 25 points today. Coming up, move over facetime and skype. Googles new app could leave the apps in the dust. Jon fortt will be here to explain and weigh in. But up next, there he is. Actor Steve Guttenberg in the house and stops by to promote the new syfy movie. Lets see. Its a sequel. Well discuss that and other projects in the works coming up right over here, steve. Come over here. Over here. Coming up after this. Lavalantula. Welcome back. Were keeping an eyes on shares of dicks sporting goods. Up nearly 8 on better than expected earnings. Sporting goods retail said it was pleased with the quarters performance in light of the activity, remember, by bankrupt Sports Authority and raising the outlook above consensus estimates. Actor Steve Guttenberg known for role in the Police Academy movies among many other things. La lalavalantula is now he back. On syfy. Who came up with the tight snl. Bill gross. Wonderful name. Steve guttenberg, the quiet, shy, Steve Guttenberg. Reserved. Very, very reserved. How does it work . I have a ton of money in some sort of retirement. I have no idea. Im a teacher. I have all this list of American Funds and i have got leg mason. Whats really going on . Whats going on . Well ask the questions here, steve. Okay great. Well do it that way. Are you empin the market . Of course. Of course. I love i go in and out and try to create as much wealth as i can by playing it. You know . What was your best move . I love wynn. I think its a great stock and i think that the upside is huge on that hes a really smart guy. But, you know, i think theres, you know, theres lots of guys doing great jobs out there. I love leg mason and cohen steers. Worst investment you made . Oh, it would be Frank Sinatra spaghetti sauce. A good buddy of mine, a fellow said, you have to invest in this. The stock is going to go through the roof. You know . You know . Paul newman through the roof. I spent i guess about half a million into it. Did you ever meet frank . No. I met the stock. I met the stock. It was you . Hes gone. Hes again. Did you get any sauce of the deal . A lot of sauce. Still have some in the garage somewhere . Trying to get rid of there. I did great on that one. To lava to la vant la. A huge giant hit of last year. Had to make a sequel. Its a true story about giant spiders attacking l. A. And now attacking florida. You read about it . It was in the journal. We heard about it. Sequels, not working at the box office this year. Whats pardon me . Sequels arent really working. Arent doing it at the box office. I think what happens with sequels is audience owns the movie. When you have a big hit, it is not yours anymore. It is yours. The mistake is to get too cute with it. It is like a rock n roll legend go up and plays hits and you can hardly recognize them because theyre jazz. No, no. I want you to play them like i saw listened to them on the radio. Same thing with the movie. People want to see the same movie and a little d