Transcripts For CNBC Closing Bell With Maria Bartiromo 20130

Couple points to close around 1638. And despite the gains over the past tw datwo days, dow sti heading towards the worst monthly decline since last year. Bob pisani, august cant end soon enough. Though it is isnt like last year. Thank heavens. I will take a nice slow calm august versus last year. We are getting ahead of ourselves. Bill and i have been doing this a long time. There are days when it is wise to retrain from overanalyzing markets. Sometimes things dont make sense. On a day like today when you have stock market rising in the middle of early part of the day with and then just falling off and buying yields declining at the same time, very light volume and sun certainty in syria, dont overanalyze too much. We have modest rally, few point really in the last two days. Less support for the syria attack obviously a major issue. Gdp issue better this morning and weekly jobs claims 331,000. Most people i talked to said that might be good enough. I think thats the way we ought to leave it now. Stocks concern here but no panic. Same thing yesterday. Happened today. Put call ratio, folks, no panic at all. Vix, no big move. Nothing like june. Been technical damage and i think people have made note of that and i think thats the biggest problem weve had the last few days. Finally a break in oil. Down about 1. 80 in oil. Oil stocks all over the place. Some on the upside are down today. Chevron and exxon both down. Thats a drag on the Dow Jones Industrial pf dow a big help today. Verizon. You heard david talking about this verizon may, were not sure, may require 45 stake. We dont know how much it might cost them. 1100 to 130 billion. You can see both stocks nicely to upsides. How do we do . Only the second down month of the year so far so dow jones right now down 4. 2 for the month. S p down 2. 8. Look at nasdaq. Theres the big outliar only down 0. 1 . June and august down months this year. All of the other six all to the upside. Back to you. Lets get a quick market flash. What do you have sh. Bill, the Canadian Banking giant, td bank, Toronto Dominion bank, td bank, is looking at merging brachblgs in in canada and United States in order to cut costs. This according to to their ceo. Moves here strategically, cost cutting to get things more streamlined again that td bank, trondo dominion bank, looking at merging some branchs in canada and United States in order to cut costs according to td banks c oe o. Back over to you. Love it when a plan comes together. Ceo at rbc, another Canadian Bank, we will ask them both about the trend and whats happening there. Joining us now to help break down the action on the markets is heather hughs. Greg from the economy. Dennis guardman from the guardman letter. Welcome. Welcome, folks. Dennis, what did we learn on the market today . Im not sure what we learned today given that oil prices collapsed. Brent losing to wti, thats important. All of those either divergeant or convergent and quite honestly, im confused. Im with you, dennis. You are the great fed watcher. A strong 2. 5 . Job claims are down. And bond yields go down, not up, as you would think they would if they are thinking the fed tapering is coming soon and dollar going higher today. You know, gdp data is not as strong as headline suggested. Most of the contribution was from exports an inventories. Hard to see exports making big contribution given the slowing you see in emergency markets. I think thats more important to the fed than gdp numbers . Heather, i hope have you answers for us. No. Greg is the econ con mist. Do you get calls saying, whats going on with my money . Yeah, right. We work with some of the largest Financial Advisors of the country. Right new, pretty consistent the last two months raising cash. Cash of course has a negative carry value but it doesnt go down in value, hence as long as there is no inflation and gives investors a chance it buy at a lower price. What are you telling them to do now . Advisers are looking at their retail client and saying, hang in there. Volatility is low ahead of the long weekend. That should pick up among syria uncertainty next week. Stocks are thinly traded. Now may not be the time to be a hero just yet. Dennis, if the world made sense, what you want to do that now . Lets get earnings. John, what do you got . News from the numbers on q 2. And 957 nongap eps is 9 cents. Guidance is also good. Wall street looking for 1. 4 billion. Sales slightly above 1. 05 billion. Street wanted another seven cents and sales forces got between 8 and 9. Sales force also raising the full year, 2014 fiscal year revenue guide to 4 to 4. 025 billion. Thats up from 3. 835 to 3. 875 that they guided last quarter. So bets and raises across, like the stock is up, better than 6 after hours. Bill . A big move, john. With those numbers in hand, the company ceo, by the way, mark has taken the hot seat with jim cramer tonight. Cnbc exclusive. You wont want it miss that one. Lets get to our market panel. As dennis was saying off the top there, of all the contradictory things playing off. Is it a good sign that stock close up for the day given head winds . Yeah. I think it is reasonably, i wont say overtly impressive, but reasonably so. And the fact that mond bond market turned around like it did, to me is impressive. That certainly didnt blow up in my face but you have to be impressed. I bought stocks last week quietly. Im not im nervously long. Nervously long in japan. And todays action, not going to bring me off to the side lines but at least it is impressive enough to say, it finished up on the day and suddenly good news, thats the good news. Right. Theres definitely a lot of mixed data out there. So he says he is long but he is nervous and markets and when you have manufacturing, thats improving at the same time, you are getting gdp, slow 2. 5 , still below the 3 historic average. Jobs seem to be picking up. But yet, maybe for the wrong reasons at the exception of parttime workers and lower income jobs people dropping out of the labor force. Greg, no surprise, jeffrey lacquer, one of the feds said, he is no fan of tapering anyway of the program. We would have started tapering last year, he said. He said today that they feels the criteria of the feds set up to begin tapering has been met. Do you agree . I kind of i kind of do. The key thing they put out there was, continued improvement in outlook for labor market. If you are talking about a a minute ago, we have met that criteria. Other point that fed officials have been rather emphatic about is that it is not one months data. Accumulation of data, in other words, you see steady improvement of improvement. Steady decline in unemployment rate. We have seen gdp relatively good. Not gang busters but holding in there for quarters. Unless you get terrible setback the next three or four weeks, i dont see what would change by wanting to slowly dial back the pace at which they are expanding their balance sheet. Two things to slow at you. First is feds own forecast require that we get Something Like 3 or higher gdp for the second half of the year. Then how the second thing is of course personnel. We havent talked about Larry Summers at all. Is he sheen as shoein, at least by markets at this point. I guess the question becomes, can he survive confirmation hearing . One at a time now. Lets start at the first one. It will be hard it meet the gdp forecast. They will put together new forecasts in september and that will show the that will be very interesting. What you see is that even though economy falls short on gdp, it is seedi exceeding the forecast on unemployment. You are not likely to get a major change in fed strategy just based on the forecast. You know on personnel, there are certainly odds that it will be Larry Summers have written dramatically and reports from the own nbc john harwood that suggests that is much more likely. What the mark set worrying about is summers fed will be more hawkish than bernanke or yellin fed. We dont have a good view of what he thinks. Everything we have seen him talk about in terms of fiscal policy suggests he is rather dovish. Wow. Really . Really . Yeah, really. Okay. See you all. Thank you. Larry summers, dovish. Thats from greg. Who would know better . Exactly. Syria still in talking stages at this point, defense secretary hagel expected to meet with congressional leaders tonight. Will that pave the way for a strike . We have more coming up next. Also, the Banking Industry is battling pressure from regulator. We will speak from the ceos of two of the worlds biggest banks. We will get their reaction. Hard evidence you do not need a College Degree to make a lot of money in your career. We will give you the list of vocations that pay big bucks. Its coming up in part four of weeklong series we call school days, changing face of college. Youre watching cnbc first in business worldwide. To make their money do more. ann to help me plan my next move, i take scottrades free, inbranch seminars. Plus, their live webinars. I use daily market commentary to improve my strategy. And my local scottrade Office Guides my learning every step of the way. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Ranked highest in Customer Loyalty for brokerage and investment companies. Top officials expected to greet officials on the crisis in syria. Ayman, it seems the world is watching and waiting for the u. S. Response here. Thats right. Things remain very intense. Inspectors went out for the third time. They are continuing to work despite the fact that they say they need more time and perhaps that they are going to wrap up their findings on friday before they submit it to the United Nations. Why that is so important is because members of the International Community are pressing the United States and United Kingdom to see what the report says. What the findings are. More importantly, once the report is submitted to United Nations security council, Uk Parliament wants it wait and see how the reactions go from there. However, british Prime Minister says there is a legal basis, a humanitarian clause that allows countries of the interfaingsa will commune it to intervene militarily if there is a humanitarian reason to do so. Meanwhile across the region here, the situation remains very tense. Thousands of Syrian Refugees continue to pour across borders. More than 13,000 in the past 24 hours into lebanon alone. Against the backdrop, still more anxiety. Iranian government threatened, saying if there was a u. S. Attack, it would be the second vietnam for the u. S. And more importantly, engulf the region in a war that would not end favorably to the United States and its allies. Thank you, bill. All right, ayman, thank you for staying light for us to night, my friend. We continue it see crude oil. A mover as a result, still over 100 a barrel. But david gordon thinks this mark set seriously overestimating the chance for this escalating no a region wide conflict. With the center for strategic andnt national studies, good afternoon. Good after not in. Great to be here. Thank you again for your time. Such an important issue. Part of the things people are focussing on now is a more drawn out prolonged conflict in sir why or across the middle east. Does that mean we have sustained upper pressure on oil price that acts as an attack on the economy . I think if we were talking about a real longterm intervention by the United States and real escalation here, that would be the case. But i think as president obama made clear, he really doesnt want to get involved to the syrian civil war. This is all about punitive action against syria for the gas attack, the chemical weapons attack, of a week and a half ago. And it is also to establish credibility with iran about the willingness of the United States to take strong action in the region. But i dont think we see ans escalating theory here. The price the of oil we all know syria doesnt export a whole lot of oil, so thats not at issue here. But they are expecting a Ripple Effect that would effect the countries that do export oil. Do you . I agree very much with david. I think this will be a very isolated. Meant to send a message, not just to enemies but to our friend. We have lots of friends around the world who are relying on the guarantees who have made them. People in japan, taiwan, israel. Where we have said things are unacceptable. If we Say Something is unacceptable in syria and we still do nothing and friends say can we count on the United States. This is meant to send a message to friends. Meant to send a message to enemies. But i dont think it is about trying to change the situation on the ground in syria. It is trying to send a message to the government of sir why as well as everybody else. John, what kind of message is that . You just said it is not trying to change the situation on the ground. The message is there will be consequences. So consequences are a missile strike that what . They are not looking for change . They are not looking for they just want to send a message of some kind. Syrian regime and some of its military capabilities here. This is not going to be it will be targeted but also one time only. It is basically to say to assad, do this again, this is what we can do. Some command and control sites. I presume some air sites. And some air defense sites. Part of the point of the message is, we can do what we want. When a when we want to do it. And what is holding us back is not that we dont have the will but we dont think it is in our interest. That puts syrians on notice. John explain to me how, if im assad, and the u. S. To some extent public and drawn out debate over whether to strike at all, makes it a onetime only thing, meant to send a message to do anything other than change the situation, why doesnt that prevend them from turning around and use chemical weapons again. John first. Exactly as david said. Then itll happen again. And there will be different sites and different targets. One of the things is this has to create some pain. Not just a fekless one time pin prick. If you think about the danger i would worry about more than getting into iraq in 2003, are the desert fox strikes of 1998 with clinton administration, attacking saddam to snd send a message and didnt do anything. Syrians know what we are capable of. We dont need to send a message. If we arent looking at rejoem change for most or at disabling chemical weapons plans at least then why were he bothering with the military strike to send a message. Dont they know what we are capable of . No. They do know what we are capable of, they dont know what he with are willing to do. I believe that part of the challenge here, is that the u. S. , when there was some efd a couple of months ago of much smaller scale, chemical weapons attack, the United States didnt really respond effectively. I think the syrians and their backers in iran and hezbollah, actually believe that the United States is not willing to get involved. Thats why this is all about credibility. And it is really about setting up credibility for the United States to play very tough with iran when the new round of Nuclear Negotiations begin in the fall. All right. That should go quite well. Sure. Guys, thanks very much. In the meantime, we will keep an oi on the oil price, which is the point this a lot of u. S. Consumers will feel some pain. Thanks very much again for that debate. Up next, we will speak exclusively with head of rbc. We will ask him about the companys record earnings p. Then later, fickled teens. Why are some stores packed, others not so much . Courtney reagan goes shopping with a few of the teens to find out. Wait until you see what she discovered too, after this. So im always looking to take them up a notch or two. Tdd 18003452550 and schwab really helps me step up my trading. Tdd 18003452550 theyve now put their most powerful platform, tdd 18003452550 streetsmart edge, in the cloud. Tdd 18003452550 so i can use it on the web, where i trade from tdd 18003452550 most of the time. Tdd 18003452550 which means i get schwabs most advanced tools tdd 18003452550 on whatever computer im on. Tdd 18003452550 its really taken my trading to the next level. Tdd 18003452550 ive also got a dedicated team of schwab trading specialists. Tdd 18003452550 they helped me set up my platform the way i wanted, tdd 18003452550 from the comfort of my home. Tdd 18003452550 and we talked about ideas and strategies, one on one tdd 18003452550 really gave my trading a boost. Tdd 18003452550 all this with no trade minimums. Tdd 18003452550 and only 8. 95 a trade. Tdd 18003452550 after all, im in this to win, right . Tdd 18003452550 open a schwab account and learn how you can earn up to 300 tdd 18003452550 commissionfree online trades for 6 months tdd 18003452550 with qualifying net deposits. Tdd 18003452550 call 18882542600 today. Tdd 18003452550 the world is changing faster than ever, creating new opportunities for those who stand ready to seize them. In a time when the biggest risk is playing it safe, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, our flexible, collaborative approach helps forwardlooking companies not only run better, but run different. To give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because now more than ever, the future belongs to those who challenge the present. Dominik chu on what drove the market. Dom . What popped and dropped in todays trade. First of all, can you hear me now . Verizon and vodafone on news that vodafone is talks to sell its 45 of its stake to verizon. It is worth about 115 billion. Also up, zillow. Zillow up 7 . This stock is up around 240 so far this year. No guessing involved when it comes to guess shares. It is a huge move to the upside. Thats after the apparel maker and Dow Jones Industrial<\/a> pf dow a big help today. Verizon. You heard david talking about this verizon may, were not sure, may require 45 stake. We dont know how much it might cost them. 1100 to 130 billion. You can see both stocks nicely to upsides. How do we do . Only the second down month of the year so far so dow jones right now down 4. 2 for the month. S p down 2. 8. Look at nasdaq. Theres the big outliar only down 0. 1 . June and august down months this year. All of the other six all to the upside. Back to you. Lets get a quick market flash. What do you have sh. Bill, the Canadian Bank<\/a>ing giant, td bank, Toronto Dominion<\/a> bank, td bank, is looking at merging brachblgs in in canada and United States<\/a> in order to cut costs. This according to to their ceo. Moves here strategically, cost cutting to get things more streamlined again that td bank, trondo dominion bank, looking at merging some branchs in canada and United States<\/a> in order to cut costs according to td banks c oe o. Back over to you. Love it when a plan comes together. Ceo at rbc, another Canadian Bank<\/a>, we will ask them both about the trend and whats happening there. Joining us now to help break down the action on the markets is heather hughs. Greg from the economy. Dennis guardman from the guardman letter. Welcome. Welcome, folks. Dennis, what did we learn on the market today . Im not sure what we learned today given that oil prices collapsed. Brent losing to wti, thats important. All of those either divergeant or convergent and quite honestly, im confused. Im with you, dennis. You are the great fed watcher. A strong 2. 5 . Job claims are down. And bond yields go down, not up, as you would think they would if they are thinking the fed tapering is coming soon and dollar going higher today. You know, gdp data is not as strong as headline suggested. Most of the contribution was from exports an inventories. Hard to see exports making big contribution given the slowing you see in emergency markets. I think thats more important to the fed than gdp numbers . Heather, i hope have you answers for us. No. Greg is the econ con mist. Do you get calls saying, whats going on with my money . Yeah, right. We work with some of the largest Financial Advisors<\/a> of the country. Right new, pretty consistent the last two months raising cash. Cash of course has a negative carry value but it doesnt go down in value, hence as long as there is no inflation and gives investors a chance it buy at a lower price. What are you telling them to do now . Advisers are looking at their retail client and saying, hang in there. Volatility is low ahead of the long weekend. That should pick up among syria uncertainty next week. Stocks are thinly traded. Now may not be the time to be a hero just yet. Dennis, if the world made sense, what you want to do that now . Lets get earnings. John, what do you got . News from the numbers on q 2. And 957 nongap eps is 9 cents. Guidance is also good. Wall street looking for 1. 4 billion. Sales slightly above 1. 05 billion. Street wanted another seven cents and sales forces got between 8 and 9. Sales force also raising the full year, 2014 fiscal year revenue guide to 4 to 4. 025 billion. Thats up from 3. 835 to 3. 875 that they guided last quarter. So bets and raises across, like the stock is up, better than 6 after hours. Bill . A big move, john. With those numbers in hand, the company ceo, by the way, mark has taken the hot seat with jim cramer tonight. Cnbc exclusive. You wont want it miss that one. Lets get to our market panel. As dennis was saying off the top there, of all the contradictory things playing off. Is it a good sign that stock close up for the day given head winds . Yeah. I think it is reasonably, i wont say overtly impressive, but reasonably so. And the fact that mond bond market turned around like it did, to me is impressive. That certainly didnt blow up in my face but you have to be impressed. I bought stocks last week quietly. Im not im nervously long. Nervously long in japan. And todays action, not going to bring me off to the side lines but at least it is impressive enough to say, it finished up on the day and suddenly good news, thats the good news. Right. Theres definitely a lot of mixed data out there. So he says he is long but he is nervous and markets and when you have manufacturing, thats improving at the same time, you are getting gdp, slow 2. 5 , still below the 3 historic average. Jobs seem to be picking up. But yet, maybe for the wrong reasons at the exception of parttime workers and lower income jobs people dropping out of the labor force. Greg, no surprise, jeffrey lacquer, one of the feds said, he is no fan of tapering anyway of the program. We would have started tapering last year, he said. He said today that they feels the criteria of the feds set up to begin tapering has been met. Do you agree . I kind of i kind of do. The key thing they put out there was, continued improvement in outlook for labor market. If you are talking about a a minute ago, we have met that criteria. Other point that fed officials have been rather emphatic about is that it is not one months data. Accumulation of data, in other words, you see steady improvement of improvement. Steady decline in unemployment rate. We have seen gdp relatively good. Not gang busters but holding in there for quarters. Unless you get terrible setback the next three or four weeks, i dont see what would change by wanting to slowly dial back the pace at which they are expanding their balance sheet. Two things to slow at you. First is feds own forecast require that we get Something Like<\/a> 3 or higher gdp for the second half of the year. Then how the second thing is of course personnel. We havent talked about Larry Summers<\/a> at all. Is he sheen as shoein, at least by markets at this point. I guess the question becomes, can he survive confirmation hearing . One at a time now. Lets start at the first one. It will be hard it meet the gdp forecast. They will put together new forecasts in september and that will show the that will be very interesting. What you see is that even though economy falls short on gdp, it is seedi exceeding the forecast on unemployment. You are not likely to get a major change in fed strategy just based on the forecast. You know on personnel, there are certainly odds that it will be Larry Summers<\/a> have written dramatically and reports from the own nbc john harwood that suggests that is much more likely. What the mark set worrying about is summers fed will be more hawkish than bernanke or yellin fed. We dont have a good view of what he thinks. Everything we have seen him talk about in terms of fiscal policy suggests he is rather dovish. Wow. Really . Really . Yeah, really. Okay. See you all. Thank you. Larry summers, dovish. Thats from greg. Who would know better . Exactly. Syria still in talking stages at this point, defense secretary hagel expected to meet with congressional leaders tonight. Will that pave the way for a strike . We have more coming up next. Also, the Banking Industry<\/a> is battling pressure from regulator. We will speak from the ceos of two of the worlds biggest banks. We will get their reaction. Hard evidence you do not need a College Degree<\/a> to make a lot of money in your career. We will give you the list of vocations that pay big bucks. Its coming up in part four of weeklong series we call school days, changing face of college. Youre watching cnbc first in business worldwide. To make their money do more. ann to help me plan my next move, i take scottrades free, inbranch seminars. Plus, their live webinars. I use daily market commentary to improve my strategy. And my local scottrade Office Guides<\/a> my learning every step of the way. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Ranked highest in Customer Loyalty<\/a> for brokerage and investment companies. Top officials expected to greet officials on the crisis in syria. Ayman, it seems the world is watching and waiting for the u. S. Response here. Thats right. Things remain very intense. Inspectors went out for the third time. They are continuing to work despite the fact that they say they need more time and perhaps that they are going to wrap up their findings on friday before they submit it to the United Nations<\/a>. Why that is so important is because members of the International Community<\/a> are pressing the United States<\/a> and United Kingdom<\/a> to see what the report says. What the findings are. More importantly, once the report is submitted to United Nations<\/a> security council, Uk Parliament<\/a> wants it wait and see how the reactions go from there. However, british Prime Minister<\/a> says there is a legal basis, a humanitarian clause that allows countries of the interfaingsa will commune it to intervene militarily if there is a humanitarian reason to do so. Meanwhile across the region here, the situation remains very tense. Thousands of Syrian Refugees<\/a> continue to pour across borders. More than 13,000 in the past 24 hours into lebanon alone. Against the backdrop, still more anxiety. Iranian government threatened, saying if there was a u. S. Attack, it would be the second vietnam for the u. S. And more importantly, engulf the region in a war that would not end favorably to the United States<\/a> and its allies. Thank you, bill. All right, ayman, thank you for staying light for us to night, my friend. We continue it see crude oil. A mover as a result, still over 100 a barrel. But david gordon thinks this mark set seriously overestimating the chance for this escalating no a region wide conflict. With the center for strategic andnt national studies, good afternoon. Good after not in. Great to be here. Thank you again for your time. Such an important issue. Part of the things people are focussing on now is a more drawn out prolonged conflict in sir why or across the middle east. Does that mean we have sustained upper pressure on oil price that acts as an attack on the economy . I think if we were talking about a real longterm intervention by the United States<\/a> and real escalation here, that would be the case. But i think as president obama made clear, he really doesnt want to get involved to the syrian civil war. This is all about punitive action against syria for the gas attack, the chemical weapons attack, of a week and a half ago. And it is also to establish credibility with iran about the willingness of the United States<\/a> to take strong action in the region. But i dont think we see ans escalating theory here. The price the of oil we all know syria doesnt export a whole lot of oil, so thats not at issue here. But they are expecting a Ripple Effect<\/a> that would effect the countries that do export oil. Do you . I agree very much with david. I think this will be a very isolated. Meant to send a message, not just to enemies but to our friend. We have lots of friends around the world who are relying on the guarantees who have made them. People in japan, taiwan, israel. Where we have said things are unacceptable. If we Say Something<\/a> is unacceptable in syria and we still do nothing and friends say can we count on the United States<\/a>. This is meant to send a message to friends. Meant to send a message to enemies. But i dont think it is about trying to change the situation on the ground in syria. It is trying to send a message to the government of sir why as well as everybody else. John, what kind of message is that . You just said it is not trying to change the situation on the ground. The message is there will be consequences. So consequences are a missile strike that what . They are not looking for change . They are not looking for they just want to send a message of some kind. Syrian regime and some of its military capabilities here. This is not going to be it will be targeted but also one time only. It is basically to say to assad, do this again, this is what we can do. Some command and control sites. I presume some air sites. And some air defense sites. Part of the point of the message is, we can do what we want. When a when we want to do it. And what is holding us back is not that we dont have the will but we dont think it is in our interest. That puts syrians on notice. John explain to me how, if im assad, and the u. S. To some extent public and drawn out debate over whether to strike at all, makes it a onetime only thing, meant to send a message to do anything other than change the situation, why doesnt that prevend them from turning around and use chemical weapons again. John first. Exactly as david said. Then itll happen again. And there will be different sites and different targets. One of the things is this has to create some pain. Not just a fekless one time pin prick. If you think about the danger i would worry about more than getting into iraq in 2003, are the desert fox strikes of 1998 with clinton administration, attacking saddam to snd send a message and didnt do anything. Syrians know what we are capable of. We dont need to send a message. If we arent looking at rejoem change for most or at disabling chemical weapons plans at least then why were he bothering with the military strike to send a message. Dont they know what we are capable of . No. They do know what we are capable of, they dont know what he with are willing to do. I believe that part of the challenge here, is that the u. S. , when there was some efd a couple of months ago of much smaller scale, chemical weapons attack, the United States<\/a> didnt really respond effectively. I think the syrians and their backers in iran and hezbollah, actually believe that the United States<\/a> is not willing to get involved. Thats why this is all about credibility. And it is really about setting up credibility for the United States<\/a> to play very tough with iran when the new round of Nuclear Negotiations<\/a> begin in the fall. All right. That should go quite well. Sure. Guys, thanks very much. In the meantime, we will keep an oi on the oil price, which is the point this a lot of u. S. Consumers will feel some pain. Thanks very much again for that debate. Up next, we will speak exclusively with head of rbc. We will ask him about the companys record earnings p. Then later, fickled teens. Why are some stores packed, others not so much . Courtney reagan goes shopping with a few of the teens to find out. Wait until you see what she discovered too, after this. So im always looking to take them up a notch or two. Tdd 18003452550 and schwab really helps me step up my trading. Tdd 18003452550 theyve now put their most powerful platform, tdd 18003452550 streetsmart edge, in the cloud. 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Tdd 18003452550 the world is changing faster than ever, creating new opportunities for those who stand ready to seize them. In a time when the biggest risk is playing it safe, we believe outshining the competition tomorrow requires challenging your Business Inside<\/a> and out today. At cognizant, our flexible, collaborative approach helps forwardlooking companies not only run better, but run different. To give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because now more than ever, the future belongs to those who challenge the present. Dominik chu on what drove the market. Dom . What popped and dropped in todays trade. First of all, can you hear me now . Verizon and vodafone on news that vodafone is talks to sell its 45 of its stake to verizon. It is worth about 115 billion. Also up, zillow. Zillow up 7 . This stock is up around 240 so far this year. No guessing involved when it comes to guess shares. It is a huge move to the upside. Thats after the apparel maker and Licensing Company<\/a> had sales that top analyst forecasts help aid long by better sales . North america. A nice stock entering today done about 20 from its highs earlier this month. As for those in the red, big oil taking a beating. Exxon, mobile and chevron down more than 1 . So bill, big movers here for big names at least. Back over to you. Bank of canada though, was up. About 1 today. Royal bank of canada. Rbc with record earnings for the quarter. So now we ask, whats next for the bank . With cnbc exclusive interview, gordon nixon. Ceo of rbc. Nice to be back with you both. One thing thats clear from your earnings, is that rbc is making hay while the sun is shining. I whether i remember target earnings report, weakness in canada et cetera, do you see storm clouds gathering on the horizon for the canadian economy . We dont. By and large, you know, business continues to be very strong. Record results in Canadian Bank<\/a>ing. Record results in Wealth Management<\/a> and strong results across all of our other businesses with a strong 20 return on equities. So it feels pretty good. I think the outlook for the balance of the year continues to remain reasonably solid. And in what is a slow growth environment. Theres, you know, growth is slow and steady in canada just as it is in the United States<\/a>. Thats probably what it is continue to be for some time. We are getting used to that new normal. We keep hearing anecdotal evidence that maybe your real estate, Residential Real Estate<\/a> mark set approaching bubble territory. Do you agree . What do you see there . I dent dont agree. We are getting signs of some softening, if you will, in terms of volume. So the prices continue to be quite strong. When you lock at fundamentals of the Canadian Real Estate<\/a> market, they are significantly different than you would have had in the United States<\/a> for instance, when the Real Estate Market<\/a> collapsed and structure of our Mortgage Market<\/a> is fundamentally different as well. So while there has been some degree of speculation of particularly in the condo sector and markets like vancouver and toronto, overall fundamentals remain reasonably well. Have you population growth. Prices that are high. But still within normalized bands and debt servicing capability remains reasonable. It is something to watch carefully but we feel reasonably good about it. And i think some steps taken by our government in terms of reducing amortization uhoh. You know when he was saying positive things about the government, bill. I dont know what problem is. We just hit 30 on time code. Im showing wires here. Maybe we lost our satellite at that moment. I hate it when that happens. We will be talking to td bank shortly. They will be closing some branch branches. What about all of the regulations here in the u. S. As it pertains to the Banking Industry<\/a> and impact it will have we have so many questions. We will sort it out. Well get to the bottom of it. When we come back, back to School Season<\/a> hitting full stride by now. Courtney reagan hits the mall with a few teenages for the real deal on their psyche and wallets. Oh, boy. Ven cure capital funding, how about hitting up alums on your alma mater. Trends, coming up. If rs to update our status without opening an app. To have all our messages in one place. To browse. And share. Faster than ever. Its time to do everything better than before. The new blackberry q10. Its time. The most Free Research<\/a> reports, customizable charts, powerful screening tools, and guaranteed 1second trades. And at the center of it all is a surprisingly low price just 7. 95. In fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. Im monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. The beach on your tv is much closer than it appears. Dive into labor day with up to 50 off hotels at travelocity. We think we figured this out now. We have gordon back. I apologize for the Technology Glitch<\/a> there, gordon. Glad to be back. The impact that regulations are having, we are still trying to get our arms around doddfrank. They havent completed it. They say they will by the end of the year. What is your assessment and the impact itll have on your business . Well, the doddfrank and voccer wont have a Significant Impact<\/a> other than trading businesses. We have one business that could be impacted depending on how the rules are written and how they are applied to foreign organizations. So it is not material. Its not overly significant. But it could potentially have an impact in terms of structure of some of our businesses. In terms of the implications of some of the dod thats mainly voccer. Doddfrank, impact on retail wont have much impact. Financial Holding Companies<\/a> rules will have a bit of impact but buecause we are overcapitalized, we hold our position. Bet are than half is retail banking. Td reported it is closing branches and it has been closing and merge be u. S. And canadian branches to keep cost and expenses down. What are you doing in your business to address that issue . Well weve had an ongoing Cost Reduction<\/a> and efficiency program, which you know, is very focused on making sure we have positive operating leverage. So revenue is growing at a faster pace than expenses. And it is ongoing. Weve got a target of getting our efficiency ratio down to the who 40s. We have steady progress. It is moving in the right direction. It is a bit of an ongoing yeah, sorry. I was going to ask, be Bank Branches<\/a> an oldfashioned thing or are they still crucial . Still critical in this mobile la banking era . They are absolutely ruscruci. When i took over as ceo 13 years ago now, technology is growing quickly and branches will become a thing of the past. That is opposite. Branches are utilized for advice. Utilized for rhett lugs of issues. Daytoday banking tends to be very much done through electronic channels now. All channels are growing and there is no question that mobile and digital is growing quickly. But the importance of branches is changing. But still very important. Are you hoping that our Federal Reserve<\/a> begins tapering sooner rather than later . The impact is on long yields going up which would improve the Banking Industries<\/a> profitability . Margins squeezed by lower rates . Right. There is no question that, you know, at some point Interest Rates<\/a> are going to have to move higher. What you want is for them to move higher for the right reasons. You want them to move higher because economies are growing. And because tapering starts to occur, not because of higher inflation rates or some, you know, undesired shock to the system. There is no question we with like to see Interest Rates<\/a> move higher in an orderly fashion. That will have a longterm positive impact on interest margins and should be good for the industry. Gordon, thanks good for joining us. Thats part two. I assume there is no part three. We will let you go. Thanks for being with us today. Great to see you gordon. A stunner from td bank earlier this hour. News it is cutting branches. Thats what we are just discussing. We will explain the move. [ ind] sfrs [ indistinct shouting ] me and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All on thinkorswim from td ameritrade. Otherworldly things. But there are some things ive never seen before. This ge jet engine can understand 5,000 data samples per second. Which is good for business. Because planes use less fuel, spend less time on the ground and more time in the air. Suddenly, faraway places dont seem so. Far away. In this hour, td bank said it is looking to cut branches in the u. S. And canada in order to save costs. Joining us is ceo and president of Td Bank Group<\/a> ed clark. Ed, great to have you with us. It is great to be here. This must be Canadian Bank<\/a> afternoon. Exactly. Youre next, right. We did ask gordon nixon at rbc. He said Bank Branches<\/a> are more important than ever. Why are you closing and how many are you talking about . An significant number. We think of ourselves as retailers more than bankers, to be honest. Retailers, in your Distribution System<\/a> were you are always weeding it and feeding it. We open more new branches than anybody do in canada. We are aggressive in opening new branches in the United States<\/a>. But you should always be saying, do i need the branches that i have . So you should merge in toward, in a sense, pay for your expansion in new areas. Thats what we are doing. Youre not looking to cut hours. You are famous for being open on the weekend. Youre not cutting that out, now. Absolutely. We are americas most Convenient Bank<\/a>. And canadas most Convenient Bank<\/a> as well. Open about 50 longer hours than our competitors. And so that is a, obviously, a huge part of our brand and we will be the most convenient with the best service. Where are you growing . And how many branches do you expect to add this year and next . Yeah, so were growing, in our priority in the United States<\/a> is to fill in new york as you know. We set a target by 2016. That will be the number three bank in new york city. Which is pretty remarkable thing from standing start in 2001. So we are putting in new branches there and new branches in florida where we want to fill out that franchise. A few in the washington, d. C. And of course boston is another area of concentration. We just sited in the introduction some analysts that see head winds for Canadian Bank<\/a>s in the future. Gordon nixon just told us he thinks the Real Estate Market<\/a> in canada is still doing well. Economy is holding up. What head winds do you see either in canada or here in the United States<\/a> for you guys . So it is different in the two countries. I think they frankly, and i think gordon is reflecting, they think outside canada people worried about the housing bubble more than we werery about it inside canada. Definitely our mortgage, personal mortgage growth for the industry, slowed down. And is growing in the 3 to 4 range. But thats not off, it is still continuing to grow and things like Business Banking<\/a> are growing double digits lending growth. Overall, tdk aechb trust, our personal bank in canada, had Earnings Growth<\/a> of 12 . Thats good rate of income growth. In the u. S. It is different. Earning 22 . So also, record we had record growth in canada, u. S. And Wealth Management<\/a> group. Not tail winds. Yeah, no. Exactly. Thats doubledigit, you know, loan growth and doubledigit deposit grej. We do think two tail winds that we had were the result of lower Interest Rates<\/a>, were that we had security gains, in the United States<\/a>, and we had mortgage refi business quite strong. So we think the mortgage refi business is slowing down. In the United States<\/a>. But we are still getting very solid growth. This month were growing about 16 annual growth rate. So thats still pretty good numbers. But those are things that are slowing down for us. On the other hand, back up of Interest Rates<\/a> are revallating our deposit base, obviously. So the long one, is a very good thing for us. Yeah. As we discussed with gordon nixon. Good to see you, ed. Thanks for joining us again. Thank you. You bet. Thinking about skipping college . Dont do it. But it may not be the worst idea for all careers. Because some of them require bachelors degree, of course. But not all College Degree<\/a>s come with a big price tag. We will talk about that coming up. Thats right, find out what vocations might offer the biggest paychecks when closing bell cloreturns after this. I use daily market commentary to improve my strategy. And my local scottrade Office Guides<\/a> my learning every step of the way. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Ranked highest in Customer Loyalty<\/a> for brokerage and investment companies. Time to have new experiences with a familiar keyboard. To update our status without opening an app. To have all our messages in one place. To browse. And share. Faster than ever. Its time to do everything better than before. The new blackberry q10. Its time. College or not college. If you are choosing not to go, there are still some good jobs out there, kelly. Here to talk more about this, tony and doug. Hi, kelly. What im worried about is people will find this as justification for not getting a College Degree<\/a> when the unemployment for those with a bachelors and higher is 3. 5 and those with no college is 7. 6 . In what case does it make sense for people to skip college . There are an awful lot of jobs out there for people without a College Degree<\/a>. Like what . Receptionist, executive assistant. Mechanic, plumber, electrician. But new jobs emerged. People like, you know, Web Development<\/a> is an area where you dont need a College Degree<\/a>. Web development . Yes, Web Development<\/a> especially is one. I spent all that money on four years of college for my kid to learn Web Development<\/a> and he didnt need to go to college. If many learn it outside of college and they dont need to learn it in college, then yes. What about the year degree ay pay. Exit tests youre writing about . What are they thinking about now that they have to what if they dont pass the test, you dont get a degree after four years . No. Theyre voluntary tests not connected to your diploma. With inflation being so high theyre saying the gpa doesnt tell them very much anymore so theyre asking for a bench mark objective assessment and thats where the exams come in. Thats an amazing statement on the quality of education in this country. Forget about the standardized tests we need at the elementary and secondary level but employers are giving people tests to see if theyve really learned anything coming out of coal. What happened with great point averages across the country is astounding. 1940, 15 percent of letter grades were as. Thats almost 50 percent now. To get a 3. 8, 3. 9 it doesnt tell an employer that much so theyre turning to these exit exams. Tony, is it a good idea to think before while youre still in high school about the possibility of not going to college . How are you going to convince your parents that you can do well getting a job as a Web Developer<\/a> without going to college for example . Thats a great question. It depends on the amount of research that you do. The other key is there are options out there. We hear from a lot of High School Graduates<\/a> who come to career cast. Com looking for available jobs without a College Degree<\/a>. What we hear back is that the best option might be try college, go to a Community College<\/a> and take a class, two classes, see if college is for you while youre working in that job that may not require the degree. Its a way to ease your way into the market while examining whether college makes sense. And given the cost of education probably it makes an increasing amount of sense. Yes. Thank you. Appreciate it. Say youve gone to college but looking to pursue your own opportunities now. Colleges and university finding financing for startups. Mary thompson brings us a story on angels giving wings to new business. Invest in what you know. A growing numbers of alumni groups are doing just that, putting money in of their alma maters. This man is founder of the Silicon Valley<\/a> badgers and sometimes funding wisconsin student startups. Automatically there is a band and loyalty which kind of develops which is essential for any startup because most startups end up having near death experiences. You want tight teams together. The angel Capital Corporation<\/a> estimating about 50 angel alumni groups exist from schools including harvard, march kwet and the university of mississippi. Schools with a strong sense of spirit and entrepreneurial, computer, math and science programs. Bayler university is one of them. We are one of four kpos selected to actually present at their angel breakfast. After the presentation we had six weeks of Due Diligence<\/a> where they had to go through and interview us and try to poke holes in the business and makd sure we will a viable investment. Allowing small and medium size businesses to set up ecommerce sites in a few minutes. Preferred stock giving grubs money for marketing new hires. He says it should get the firm to its goal of revenue in the low 7 figures in 2014. Thats a score for students, alumni as well as the school, bill. Thats a great idea. Get those alumni in there and use their expertise and funds. You mentor them and fund them as well. Thanks very much. Stocks made it two for two but just barely. What happens tomorrow . Stock pros will give you a leg up on fridays stock market action, bill, when we come back. [ marco ] im a student at Devry University<\/a>. And this is my home team. This is my large lecture hall. This is my professor. And also my coach. This is my booster club. This is the guy whos graduating ready for a great career in technology. [ male announcer ] in 2012, 90 of Devry University<\/a> grads actively seeking employment had careers in their field in 6 months. Join the 90 . Learn how at devry. Edu. Now the fun part, 30 seconds on the clock. How will stocks end this volatile week not to mention month. Lets welcome our guests. Guys, good afternoon. Jimmy, you first. What are you watching tomorrow . Tomorrow ill be watching the Consumer Sentiment<\/a> numbers and im a little concerned although we had good data this morning we still have slow growth and geo Political Risk<\/a> in the news today. This is a confusing time for investors. Sometimes bad news is good news for stocks, right . Well thats because traders are trying to time the fed tapering. Theyre not playing the same game as traders. Instead of focusing on the taper they need to focus on the long term goals. Eventually well have a bear market so investors have to have a plan for it. There are broad Economic Data<\/a> points coming out of the eurozone as well as japan tomorrow that could affect futures in the morning. We have the consumption figures for july. Higher numbers could suggest inflation. Lower numbers might give cause to the housing consumer. I think the goldy locks scenario would be numbers that come in line as well as if the fed can strike a doveish tone. That would set a good day for the market. The wild card is the situation in syria. Absolutely. Tim finishes out here. Hi, kelly, big fan. At the kolg wood group we focus on the strength of housing and that was clearly reflected strog gdp and jobless numbers today. Tomorrow is about the consumer. We have a consumption based economy and thats where the rubber meets the road. Well find out about personal income, personal outlays. Consumer sentiment which really gets to the likelihood of someone spending their money. Ultimately those are the best proxies for the health of the company and thats going to drive the market tomorrow. Thank you gentlemen very much and have a great weekend. One last look before we get to fast money. Heres how the market did today on the better than expected revision. Lower than expected jobless claims numbers fofrt latest reporting week. The dow was up 90 but fell at the close there finishing up 16 points with the nasdaq doing pretty well up 60 points. Those Technology Stocks<\/a> doing well. People are saying we cant figure this market out. The ten year moving lower, under 2. 8 percent, a lot for people to digest in the morning. Thank you for joining. Thank you for having me back. Thank you all for tuning in. Fast money begins right now. Live from the Nasdaq Market<\/a> site in new york citys times square, im melissa lee. Our traders are guy adami, brian kelly, dan nathan, John Najarian<\/a> and mike khouw. Lets get to the big story fast is following, rebuilding the housing rally, rough ride for housing bulls with Home Builders<\/a> down nearly 30 percent. The question we ask tonight is the recent rate reprieve enough to get investors constructive on","publisher":{"@type":"Organization","name":"archive.org","logo":{"@type":"ImageObject","width":"800","height":"600","url":"\/\/ia803004.us.archive.org\/33\/items\/CNBC_20130829_200000_Closing_Bell_With_Maria_Bartiromo\/CNBC_20130829_200000_Closing_Bell_With_Maria_Bartiromo.thumbs\/CNBC_20130829_200000_Closing_Bell_With_Maria_Bartiromo_000001.jpg"}},"autauthor":{"@type":"Organization"},"author":{"sameAs":"archive.org","name":"archive.org"}}],"coverageEndTime":"20240619T12:35:10+00:00"}