Price hike spreads but thats not the whole story. Mylan raised prices more than 100 for 7 products over the last 6 months. Those details also coming up. Cash burn isnt always a bad thing. Well talk to the man known as the dean of valuation about which stocks with negative cash flow he says could be good investment opportunities. Aswath damodaran coming up. Nasdaq and s p could be in record territory dow. Bertha coombs, whens happening . You know, kelly, this is like the Rodney Dangerfield market. Nobody gives it much respect yet the nasdaq continues to grind to new highs and seeing some of the small caps catching up to the big cap indices. Russell 2000 within 3 5 of the alltime high set 13 months ago and this is a big laggard and momentum continues to be in big tech. Chips seeing a new 16year high. Dating back to october 2000. Broadcom among the chip stocks today at record highs. The sector up 16 since the start of july and a big comeback before brexit. Big cap seeing more momentum. Some indices of 16year highs. Thats helping to send the nasdaq 100 today within just a couple of points of a new alltime high, the big cap index, qqqs. And even though pokemon go may have peaked, ea today is at a historic high. Netflix, in fact, among the best performers today. Among the fang stocks and best so far this month. Still, though, well into bear market territory. Retailers today kind of mix on the back of the good news coming out of best buy, amazon one of the better performers, reportedly ready to launch a 5 a month music streaming service, guys. But theres a catch. You have to ask alexa because they want it on the echo devices. Amazon wants to hold on to you and keep you in their sphere any way they can. All right. Bertha, thanks very much. Alexa is not yet invited to live in my home. When she is maybe well ask her. 5 bucks a month for the music. Not too bad. Lets get to the closing bell exchange. Today we have susan fullton, stewart garfoyle and rick santelli. Susan, we heard of Consumer Discretionary stocks up and chemicals, materials. Seems like the cyclical trade is in gear. Do you think thats something worth playing here . I think theyre moving market itself is looking for yield. You know, it is almost only horse race in town right now. Is yield. And the cyclicals, i mean, the tech stocks are beginning to pay pretty well. Were a little concerned because the market seems or the complacent. Its not very volatile. Its as though volatility its had since 1995. And its hitting alltime highs everywhere except in terms of growth and productivity and income. And that people stuff and just not happening yet. Well, just to jump on that a little bit, 1995, quiet market. Wasnt reason to run away from it, was it . Back then. No, no. I dont think you can run away from the market. Only horse in the race. Yeah. Well, sarge, what you watching . We hit 2193 on the s p 500 today and hit it last week so thats our firm level of resistance. I think for todays trade, whens most important is thing two things. The price of oil above the Technical Support level thanks to iran. Thats a real positive. Dragging the Energy Stocks higher and new home sales. Which print out a really dramatically higher level, highest level since 2010. A print like that for existing home sales tomorrow, the housing sector is on the way even if manufacturings not really coming along for the ride but there are undeniable bright spots in this economy. Rick, every market seems to be impressed by the prospects for a pickup in growth except maybe the global Government Bond market. Those yields havent bunched. We had a firm 2year treasury auction today. What are you seeing . Is anything going to break, the treasury complex out of its range . Well, i dont think that the market is enamored with the prospect of growth. Just because we had 654,000 new homes, it would be 1. 5 million if they were enamored. You need some perspective. This is good in the new normal but not enough to pay for the new normal. And i think, you know, the epipen, cnbc has done such a wonderful job of covering this. What does this have to do with the market . Everything. How many guests have talked about regulation issues . You know, the fda is just a bureaucratic entity and the government person that was on today basically said as much. He knows how to lob the grenades at the problem but he has no idea about fostering a landscape of growth. Without that, it just youre going to see the markets tighter and tighter and tighter. You know, is it really a proud moment to be a 5,000plus handle in the nasdaq . We were there when i had all black hair a while ago. Susan, what would you add to that . One of the things i think people forget is about 10 or 15 years ago the fda gave took money from major Drug Industries to do its own research. And since then, the fda has been owned by major drug industry. And weve seen the result of that. I mean, the fda is not the institution it was in the 70s and 80s. The fda is an institution that in order to save money in the budget and this was a congressional decision, in order to save money in the budget took in industry as its major supporter and its major funder and were paying for that. Well have more on the epipen issue coming up in just a moment. Absolutely. I mean, and sarge, out to the Market Action right here, a lot of talk yet again today about how just eerily calm the stock market has been, been in the extremely quiet range. What are the implications of that for you . You know, i couldnt hear you question right now. I came in garbled but i like tech right now. I was in tech last week. Im more into the space this week. More so into the growth names as ive been in the oldschool tech names for quite a while. As for the industrials, im sort of moving out of them. Just a matter of getting the right price. Is that what you asked . Not exactly, i was actually talking about the extreme low volatility, the calm tone we have had to the market right now and whether that tells you anything in particular about the prospects for either up or down or some kind of a more dramatic move. You know, its very hard to think that you want to take very large shots right now with Janet Yellens speech on friday at 10 00, with the bank of japan, with the ecb, with the bank of england all on deck for september. I think now there are with those nice pmi numbers out of europe, kuoda, i think people and we saw overnight are kind of sheepish about whether there will be a large stimulus package brought forth by the three Central Banks in september. People are right now, theyre a little careful. I cant blame them f. Youre going anywhere without protection right now, its a dangerous thing to do i think because the volatility may be around the corner. All right. That is the forboding feeling people are getting. Thank you. Thanks. Best buy surging on an earnings beat thanks to rising market share in electronics. Courtney reagan has more. Best buy may be the last big Consumer Electronics retailer standing and standing strong. The instore demos might be making a difference. They post a wide profit beat on stronger than expected revenues when the street was forecasting a delicline and while sales fel the category performed the opposite of best buy. Consumer electronics are third of the best buy total sales and important. Targets electronic sales fell double digits in the Second Quarter and apple down. Joly said he wont comment on individual Vendor Performance other than saying the relationship of apple and samsung is strong and best buy said sales of tablets and smartphones are hurt by lack of new products and sales are now, quote, less bad than they were. Walmart with a strong second quert and the retailers u. S. Ceo wouldnt break out Electronics Performance either when i asked him but tv sales soft atwal administrators Samsung Stores and joly said the price drop and companys still continuing to gain share there, anyways. Kelly and mike . This is an amazing story. I understand the comp sales up less than 1 and double more than anybody expected. Courtney, so after target told us that electronics were a problem and rattled off the other places its not been a positive force, what is best buy doing . What are the instore demos . Seems at odds with obviously what everybody was expecting. Right. So we have talked for a long time about the strength of amazon in electronics and some can be considered commodity products if theyre the same or virtually the same across retailers but if youre going to spend a couple thousand dollars on a wholehome theater system, the 4k tv, plus the speakers or the sound system, whatever it is you want to include in that, you probably feel Better Seeing it in person, getting some information about it from a sales rep. Best buys done a good job giving you information on the website and in a lot of cases joly said consumers come in to the storms informed with the information online. Come in and ask the questions, see the demo, feel better and buy it in store and we talk about the physical experience still being very, very important for retailer. You cant necessarily do that on amazon. No. Absolutely not, courtney. I guess the big question is, you seem to have a bit of a zero sum game element in retail right now. Some players dont hit it in the category. Somebody else takes the business. Can we extrapolate this category of best buy delivered into back to school and holiday . I asked something similar and you might remember that the National Retail federation forecast a strong back to school year largely because this is a year that parents finally have to go and buy the new computer and buy the school supplies, the fill in and leftovers werent enough and joly said, look, computing is strong for us and back to school is very important. But he wouldnt really extrapolate further. I think theyre doing a lot of things right with the transformation. The eps beat largely a continuation of seeing from them. Joly is very good at cost cutting and analysts think there are no costs to cut, he keeps doing it and i think theres strength on seeing from profit in the operations as well as what were seeing in store. And as the market has taketh away, it giveth. Courtney, thank you. Thank you. A great story. Courtney reagan. Best buy shares up on a market generally moving higher. In the possibility of setting new highs for the s p and the nasdaq on the close. The dows up 32. Nasdaq z were awaiting breaking news this hour from tesla. Well bring it to you the moment it hit it is tape. Up next, not just the epipen that mylan raised the price of. We have other price hikes of last six months. A leading expert will tell us why hes calling twitter a malignant cash flow company and not necessarily a bad thing. Inside everyone is an incredible cook, someone who can cook an amazing meal any night of the week. Farm fresh ingredients, stepbystep recipes, delivered to your door for less than 9 a meal. Get 30 off your first delivery blueapron. Com cook. Pg i help customerss, how with their bills. Day . Theres different rates to fit different needs, so listening is a huge part of my job. Because customers want to know that you hear them. They have kids, they have families, they have priorities. I definitely understand that. I have three children, i was a stay at home mom, i didnt have money to pay the bills, and so i put myself in their shoes. And im going to do all that i can to lower their bills and to help their situation. To choose the rate plan that works best for your family, visit pge. Com rates. Together, were building a better california. Welcome back. Lets look at the materials sector leading the market today, a leader in the group cf industries, all the agriculture, chemical and fertilizer names and seems excitement, merger chatter and an upgrade. Mylan lower. Remember, mylans ceo three months on this program and asked her about drug pricing on the heels of maturing pharmaceutical scandal. Take a listen. I think theres been a lot of confusion of washington and wall street talking about drug prices. When you look at touring or the valaents, they werent generic drugs. They were specialty that partook in abusive practices. As with anything, theres loopholes and can be abuses. I think the system overall, if you look at the generic industry, we represent 88 of the volume in this country. Have saved 1. 6 trillion over 10 years so, you know, i would say that the system works and its about i think really now taking a harder look company by company and our profiles and what makes us different. And so she was trying to em if size the generic industry and mylan is in different from Specialty Pharmaceuticals but a guest asked what makes mylan different than other companies raising prices. What we have said and committed to do our part make sure the street, the community understands, the Investment Community where our growth and why were doing. I would start by saying looking at the investments we have made over ten years, a manufacturing platform and criticized for years we were investing too much in capx and r d and our people. So our organic drivers have been core to us continuing the growth trajectory we have had. The acquisitions have broadened our footprint, dosage forms like injectables and didnt have Critical Mass and sitting here today we believe we have an operational platform. We have a commercial footprint across the geographies thats second to none with the Global Supply chain of manufacturing what were selling. So there is huge differences between that and slashing cost, slashing r d, slashing jobs and raising prices. So mylan ceo bresch saying they use the money to invest in company. Meg tirrell has a closer look at other price hikes at mylan. Meg . Thats right. While epipen is gathering attention today, mylan is a company that has raised prices on a lot of drugs this year. Pointed out in a note actually in june by wells fargo. You know, Heather Bresch talking about a Generics Company and pointing out in the june note price increases on a couple generic drugs, more than 400 for the drug of gal stones. More than 400 for this meto clopramide, for a reflux disease and then 400 for the ibs drug. He says in the 6 months through june, mylan raised prices more than 20 on 24 products and more than 100 on 7 products. Epipen, of course, is their biggest product with more than 1 billion in revenue and see here how that price increased over the last five years. Now, while it was said in the note the price increases except maybe for epipen have a small impact on the mylan business it could impact the reputation and shareholder sentiment about the company. Mylan down there more than 4 . He says in this price environment, increases of 400 , 500 could be beacons for scrutiny and what we have seen of course. We reached out to mylan and in june they responded to this report calling the analysis flawed and saying that they have more than 1,400 products they sell globally diversified Business Model there. But, kelly, certainly, the scrutiny is here today. Yeah. You know, meg, i guess its pretty hard when we hear about these different Product Price hikes to put it all in context of whether, in fact, this is generally the way the industry tries to attempt to get these price increases through. In other words, any big companys product fort portfolio would you find these price increases . Maybe not the large price increases but you see continuity across the industry in terms of maybe multiple, single to low double digit price increases every year. Thats pretty normal. Even today we see an increase on two cancer drugs and not a thing to make a politician turn and say, wait a minute. What . And so, this is the kind of thing thats really garnering attention and then a drug like epipen and no real other options out there right now and parents depend on this for kids, thats why people react the way they are. I was asking about competition in the pipeline at this point. Have they raised prices so much, not only to alienate the consumer but leave the door open for someone else to enter the space . Thats what everybody says. It should encourage competition to come in and seen competition failed here. There have been a couple of different instances trying. Santa fe with a device which was recalled from the market late last year because it dispenses the product improperly and teva is trying to bring in generic and rejected by the fda for dei. I guess well see if it kind of creates any other centralized response. Yeah. Thank you very much. Thanks. Meantime, we have just under 40 minutes left to go before the bell. The dow still up and off the earlier highs of about 30 points. S p 500 threatening the intraday alltime highs earlier up 6. About a quarter of a percent. We are waiting on tesla for an expected Product Announcement this hour. Well bring you head lines when theyre released. Also, a leading market technician makes a bold case for tech stocks and a bull case for consumer discretionaries. What if a company that didnt make cars made plastics that make them lighter . The lubricants that improved fuel economy. Even technology to make engines more efficient. What company does all this . Exxonmobil, thats who. Were working on all these things to make cars better and use less fuel. Helping you save money and reduce emissions. And you thought we just made the gas. Energy lives here. Tesla stock up on anticipation of a Product Announcement. Some investors cautious because of its enormous cash outlays. Building battery factory and ramp up production. Not only company burning through cash. Our next guest says this isnt necessarily a bad thing. Joining us now is aswath damodaran, professor. Mr. Dean valuation on set for us. Cash is king. What are you saying here . It is eventually. If you make it a centerpiece for investing, you never invest in a young growth company. Its like having kids and complaining that the kids are teenagers not acting in a mature way. It is the nature of the beast. Maybe complaining that they eat too much and you have to force them to pay for their food so they can grow. Right . So how do you tell a company, a Young Company, thats using its cash intelligently, building value for the long term and those that arent . I wish i had a precise way of doing it but you have to look at a mul