Nearly 3 hitting 48 a barrel again, first time in two weeks. Well debate whether you should buy oil stocks on this crude comeback. Justice department announcing plans to end the use of private prisons and shares of the two largest private prison operators just getting crushed today on the news understandably. We have the latest details on that story and whether that industry can survive. I mean, the shares down almost 40 . Theyre losing almost half their market value on news just out this afternoon. Exactly. Tesla model s in flames in the test drive in france. Nobody was hurt. Pretty amazing images there. But the news is raising a new round of questions about the cars safety. Well tell you what tesla is saying and impacting the stock. Starting with walmarts earnings. An eye opening beat. Courtney reagan, wow quarter for the Worlds Largest retailer. Yes . Yes. Investors werent sure what to expect from the Worlds Largest retailer and walmart did beat on earnings. Walmarts revenues beat, comp parable sales the strongest in three years. Target fell for the first time in two years. Walmart raises the full year forecast and target lowers the guidance. Instore shopper traffic is the difference. Walmart said on a media call that performance was steady. Food or general merchandise. As traffic rose for the seventh straight quarter for walmart. Grocery drives foot traffic and a halo effect to lift sales of other categories. 56 of walmart sales from grocery. Compared to 20 for target. Both working hard to improve the food offerings, particularly organic, local products and competitive prices on those goods. Walmart is expanding the program and says its been well received by shoppers. So grocery really, really does make a difference. And those traffic numbers were completely opposite of each other for walmart and target and so basically were the rest of the results. Exactly. Courtney, thank you. What more is walmart doing right . Joining us is the investor upgrading to a strong buy from a buy and raising a price target. But a lot of good news already now seems to have moved the stock so whats the next leg for walmart here, joe . What are they executing right now here . I think they have earnings earnings and sales mo moan tum going forward. Doug mcmillen has strategies including employees on the floor from back room. Speeding up checkout. And this is leading to an improved Consumer Experience and making the stores more appealing to customers. Do you think its as simple as happy merry workers raised waenlgs and improved the hours and things like that . I think getting the employees out on the floor from the back room makes them more available to help customers, help them find the things theyre looking for in the store, by improving instock positions, theyre able to purchase items not on the shelves in prior years and both instock positions and having an employee there to find those products theyre looking for helped them grow sales. Is it about the core store experience . Anything to do with the investments walmart is mablging in dotcom and the new innovations of pickup and other types of categories that are expected to bear fruit . Well, pickup and online are certainly going to be longterm drivers of growth and the Current Quarter not so much so. We were pleased to see sales accelera accelerate. Decelerating over the prior year and a good term for the Online Business but instore is where this quarter was at and why they beat on the quarter. Again, i think speeding up checkout, better instock positions and having Better Customer Service is improving the Customer Experience in the store stores, longer term, we look online to drive earnings. Before we let you go, any headwinds still . What are they . Headwinds, you have the macro economy, pressures on lower Income Customers which could be a problem. Food deflation is a near term issue. 60base point impact and expect it to be alleviated as the year progresses and into next year. All right. Very good, joe. Thanks. Thank you. Joe agnese from s p capital iq markets i think. Joining the Closing Bell Exchange today, we have jeff carbone, Kenny Polcari is at post nine and Rick Santelli checks in from chicago, as well. Kenny p. , you have been on the floor for a while. Have you seen a market stayed in the stuck in the narrow range this length of time . It is summertime but still a very narrowly traded market here for a while . Its been a narrow market for almost feels like two and a half months now, right . Very tight, tight range and this last month a really tight range as we built up to the fed minutes, what did they say in july . Anyone find anything new about it . Jackson hole in a week. So the market is really stuck. Now that i dont think theres anymore Interest Rate confusion and put to bed last night. I certainly dont think as much as they tell you theyre going up in september, theyre not. Forget october, november because of the election. Maybe its december and im not sure it happens but the market continues to just drag through the end of the month until we get through labor day and no other catalyst or the Market Movers to really create any volatility in the market that i can see. Jeff, bonds here for a second, as part of what kennys saying, eliot management today saying that you dont go near them. You basically are better off incinerating your money. How dangerous do you think fixed income is here looking at extraordinarily low rates . You look at just like we previously said, we have a market in search of a direction, the bond market or the stock market. You know, it is like the scare crow from the izard of oz which way do i go . Which way do i go . You have the fed reserve, just mentioned, in the position to raise rates, they want to, but september, certainly doesnt seem like its going to happen. December is a possibility. But we need a lot of more Economic Data to show that. When you have germany negative, japan negative, whens the fed to do . 1. 5 rate on the 10year treasury right now, to get back to just where we started at the beginning of the year, we need a 50 rise. Not sure if we see it. Were stuck in a slowgrowth economy right now. Might be an odd question for you. Youre a student of Market Sentiment and impact on the markets. A report out of a lot of Insider Selling in the stock market right now. Do you take does that worry a bull right now or does a contrarian take comfort in that as an indicator . What do you think . You know, in the old days, when logic prevailed and the rules of the road, everybody stopped at red lights and went at green lights, i would say yes. In the world we live in, i would say, who knows . I like the analogy with the scare crow. So if we play that game, i think i would pick the lion because i dont think the fed has any courage at all. How many guests . Today alone four said, you know, a quarter point, no big deal. If its no big deal, why is the fed biting off their fingernails every time they think they may have to do it . It doesnt add up. Both our guests are smart guys. I think jeff even mentioned treasuries. But, boy, how many times do you see theres been 14 trading days in august so far and every single one a 10year note settled in the 150s. Thats very unusual. Things can change. Look at portugal. Theyre one Rating Agency away from not qualifying for the rigged program of quantitative easing. The yields are popping and probably find a way to, you know, make sure that that agency probably doesnt do what they probably should have done a long time ago, just think how they treated s p in this country taking the aaa away. We never know what forces are out there and black swans are out there and the markets are really coiled. We could extend the analogy to the fed speak that we have had. It seemed like we had dudley and lockhart and the guys lining up to say one or two rate hikes could happen and then jeff bullard today saying, no, no. One is possible in the next two years. Next two years. I think that was what the amazing thing was because on tuesday, you know, you had the three stooges, right . Say no, no, no. Its september. Its december maybe at the latest. And then, boullard no arard say not happen until 2018. Hell Say Something different next week. Jeff, how do you make sense of that . You have to figure out maybe we dont have more information than the fed does but what do you do with that as an investor . Depends on the bond side or the equity side. Bond side, some point we are going to get Interest Rates to start moving. What do you do . You look at ways of shorting the treasury market or in vehicles that are going to go to benefit you while Interest Rates are rising. From the market, look at utilities, con surmer staples, very high. When Interest Rates move on up again, we see those positions start to sell down. Take advantage of where valuations are low. Health care, technology. Seeing certainly better opportunities in those sectors than the consumer staples. Im curious on the thoughts of the insiders selling. When we saw that was june of last year just before we hit a new high in the market. Interestingly. So now here we are again. Were already at highs. Listen. We talk about this and new highs beget new highs, i think at this time theres nervousness in the market and a lot of people expect that theres got to be a pullback because the macro data is not making sense of where the market is. You have them raising stock and diversifying away makes perfect sense to me. Very good, guys. Thank you. Appreciate your thoughts on todays market action. And we have a dow up six points and with 50 minutes left into the close, the s p up 3. Nasdaq up 11. We have said it before but it bears repeating as the adage goes, never short a dull market. It creeps ever higher here. One thing lower is the u. S. Dollar, down half a point again today. Its down near 94. Maybe thats why oils been going up. In fact, a leading oil analyst making the case for 65 oil as soon as next year and list the oil stocks to go along for the ride, as well. Also the bear case in a debate on energy coming up here. And earnings parade after the bell. The gap, ross stores and app materials are up today. Well bring you the results on the tape. Keep it right here. Across new york state, from long island to buffalo, from rochester to the hudson valley, from albany to utica, Creative Business incentives, infrastructure investment, university partnerships, and the lowest taxes in decades are creating a stronger economy and the right environment in new york state for business to thrive. Let us help grow your companys tomorrow today at business. Ny. Gov enepeople want power. Hallenge. And power plants account for more than a third of energyrelated carbon emissions. The challenge is to capture the emissions before theyre released into the atmosphere. Exxonmobil is a leader in carbon capture. Our team is working to make this technology better, more affordable so it can reduce emissions around the world. Thats what were working on right now. Energy lives here. Welcome back. Valaent pharmaceuticals sinking today. Giant t. J. Rowe price is suing quaeting the fraudulent scheme cost it and others billions of dollars. Lawsuit calls out the use of mailorder pharmacy fill a door and the pricing and accounting prices. Value yenaent wiped out about 1 the high. Jackie deangelis with the latest of the nymex. Jay i can . Closing at 48. 22 just off the session highs. So why the oil rally today . A couple of reasons. First, most important one, probably the dollar weakness that came after the fed minutes yesterday. That is very supportive of crude prices right now and other circumstances, as well. You know, this time traders are really believing that opec will take some action in terms of a production freeze in september but this time is potentially different than all the other times in the past. Meantime, there is some optimism were working through some of the supply problems we have seen, as well. Department of energy data yesterday did confirm that, at least for the week. So how do you play it . Well, lets talk about this. Kensho sta tisings show us oil gain 15 in 20 days time like we have now, in the week after, oil prices down about 83 of the time. That makes sense, right . After you see a bumpup, you see selling, as well. A month after youll see prices up more than 5 about 83 of the time and indicating longer Term Oil Prices could have the potential to break through the 50mark and legs to go higher from here, guys. Exactly. Thank you so much. Oil stocks have been a big beneficiary of the rise of in oil prices and why bank of america upgraded. Predicting the price of oil to jump 50 to 69 a barrel by next june. So lets talk about it. Is this the time to buy those oil names finally . Lets bring in david cast who says, yes. D. R. Bar on tton who says, no, yet. Youre the value guy finding value in Energy Stocks right now, are you . We are finding value there. Part of the investment thesis is based on the fact oil trades up to the 60 to 65 level. We think we are in a band right now of 40 to 55. If oil trends higher, we think theres opportunities in the oil stocks. A good yield at a number of companies. Cheap relative to the earnings and very cheap relative to the price to book value and longer term basis, you want to own the stocks and waiting for 65 the stocks will have moved a lot. D. R. Why are you cautious . You dont think price of oil is going up or do you think the companies wouldnt be the best investment . No. I agree with david on the valuations of the stocks. Im more of a sector call. I think that oil we just got a bunch of good numbers. We are up. I think right now is not a good time to put new money to work in these names. I think that we are going to get another pullback, another substantial pullback because, you know, we said it could be different for opec this time and think about what would happen if they did freeze. Saudi had a highest production month ever. So theyre freezing it right at the top of the production levels and i dont see new demand coming along. Actually the opposite over next six to 12 months and help prices to get higher. We are getting more rigs coming on week to week a little bit by little bit and a lot more supply upside than demand right now. Which i guess, david, you would say gives you time to pick these guys before the price does move higher. Who do you like here . Whats the reasoning behind who you like . Basically we are playing the better businesses a little bit lower volatility and doing better in a better environment. So a company of exxon or a Royal Dutch Petroleum are low risk. Paying up to 7 yield. Occidental petroleum is very well run. Youre getting about a 4 yield and to be more speculative, conoco has done pretty poorly this year relative to the Overall Energy group because they lowered the dividend in early february. The earnings is worth a lot and going to have some good catch up to the group. All right. Very good. David, thank you. D. C. Good to see you as well. Thank you for today. Okay. We have new developments on the investigation into ryan lochte. Andrew ross sorkin joins us. What are they saying now, andrew . Reporter guys, Police Holding a press conference moments ago. Headlines for you. The police saying that there were a series of contradictions from the beginning in the u. S. Swimmers account of last weekend. Police saying there was no robbery as described by the swimmers. Thats the important part because it is a complicated situation. Brazil police saying they havent confirmed what or if crimes they might be charged with or what will happen. However, they did say there was acts of vandalism and then the question, of course, whether they lied in these signed statement that is they made to police. I should say, those could if they were found to lie and they were prosecute, between one and three years you could be jailed for. Worth noting that. As were starting to get a real better sense of what happened here. It looks like we showed you video earlier today, the gentlemen were at a gas station. Tried to go to the bathroom. Some sort of van dammism took place in the bathroom. Unclear. It looks like they tried to leave that gas station. Then, clearly, the security came to them. They still tried to leave. They tried to pay the security folks to leave. They wanted them to stay until the police came. And then it looks a little unclear what happened. Heres the most important piece i want to mention. Given that theres been questions about whether guns were drawn. Rio police are saying that the gas station Security Guard did pull out a firearm because what he says was one of the u. S. Swimmers was acting erratically. If you looked closely at the video of the day you did see some of those swimmers hands go up at one point and now starting to get a little better sense of what took place. Clearly the original story told is not exactly what happened and clearly moving into a different place. We are going to bring you more as we get it. And we should also note that police saying theyll continue this conversation. Theyre still looking and trying to search for details, guys. Andrew, you mentioned how punitive this could be if they would have to go through a trial process if theyre found guilty of what you mentioned facing a couple years in ryan lockte is back in this country. Reporter well, theres a couple of questions here. First the question of the vandalism, whether they prosecute that at all. Two, then you should know theres three athletes who are here. One of them definitely signed the original statement with ryan. The two others unclear. Whether they would try to extradite ryan lochte from the u. S. Is more complicated. The ioc spokesman seemed sympathetic to these guys. And you have to imagine that theyre part of this conversation, as well. So, we will see where this all goes. Of course, the worst part about this is this is the headline. This is what were talking about. Rather than the athletics and the competition and people spent so long training to be here and were not really talking about whens going on there. Well try to bring you highlights over the next day but a lot has happened here in this sports world beyond this story. How about the 4 x 100 relay . They get a do over. The