Transcripts For CNBC Closing Bell 20240622

Gas prices have been going up despite oils drop. Weve got Joe Petrowski telling us what he calls a potential fear premium forming in the gasoline price. Here is a question ive been asking. Is outer space big enough for along musk and Richard Branson . Well tell you about the new satellite war brewing between these two billionaires coming up in a while here. Plus, the Commission Free trading app robin hunt has done 1 billion in transactions. How lock can it keep those trades free of fees . Well ask the founders when they join us live. Lets begin with walmart and home depot and the mixed fortunes they presented this morning. Courtney reagan joins us with that story. Its been a long and short day all at once. Walmart and home depot are dow components. Some small merchandise categories cross over. The reason for guidance updates widely. Home depot, inline enings, stronger than expected samestore sales and better spending among higher income consumers and professionals. Home improvement retailer raiding its guidance due to the acquisition of interline brands, but a raise is a raise. Walmart had earnings falling short of consensus but stronger than expected revenue. The fourth straight quarter of positive u. S. Comp sales growth and increased traffic, but the Worlds Largest retailer is lowering its full year Guidance Range significantly. Citing a number of head winds, including currency impacts, increased hours at higher wages, lower reimbursements from prescriptions and higher shrink but includes theft and damaged unsellable goods which could take 18 months to rectify. The stock price performance. Walmart down 3. 5 . Home depot up by 2. 2 . Walmart finally showing momentum here in terms of its sales. With a lot of these factors you mentioned, whats it going to take for investors to be more reassured about their trajectory . If you are an investor, if you are looking at short term or long term, so far yeartodate walmart disappointed. Its down about 20 yeartodate. Broader s p retailer is up 20 in the same period of time. A lot of analysts like what walmarts doing when it comes to investing in the consumer experience. All those things take time. They are seeing improvements in their stores. Samestore sales are stronger. Traffic is stronger. Currency head winds and this shrink problem is going to take a while to rectify. Be careful and understand what the company is working with here. Currency head winds become a tail wind. Shrinkage you can solve that. These higher expenses of paying, they made much of paying the higher wage to their employees and giving them more hours in the front of the store there so they could maybe even qualify for benefits at the same time. Thats not going away. Thats only going to go higher, that expense. They are adding to the hours. Associates making sure the lines are as short as possible and you can get in and get out quickly, efficiently to make the experience better. They are staffing more hours with employees fulfilling those shelves so that harkens back to the inventory and instock levels. It is an expense but also could be a benefit if it fixes what they are trying to fix. Thank you. No doubt well see you later. Housing data looked great but not okay. What do you make of the economic back drop for the markets right now . The same as its been for the past five, six years. Its a bunch of mixed data. When you put it all together, we are in a below average growth economy, somewhere between 2 and 2. 5 . That is probably not going to change. We expect we are going to get that first rate hike in september. Then we are not going to get another one for at least another two quarters. We have the home builder index in a multiyear high today. Would you be buying the Home Builders here . No. We do think there is a lot of opportunity because although the markets been relatively flat this year, underneath you had bear markets in some industrials and energy sectors. We think that ultimately represents opportunity because we do not think it portends a recession. Citi put out a note saying they would buy Energy Stocks right now. They see value even though we havent seen a bottom yet, presumably in the price of the commodity itself. We were talking about that a couple of weeks ago. Yes. Obviously, they were watching and you have these analysts getting paid millions of dollars to watch a simple guy like me say i would buy Energy Stocks. I believe there are real good opportunities out there. If you look at oil, its starting to build a base here. Maybe there is room on the downside. Wellrun Energy Companies are a great investment. Are you sure they are building a base not a ceiling . No. They are building a base. Even with supply and demand issues, and that is going to continue, you have to look at it this way. Every Oil Manufacturer or oil producer is going to find a spot where they can be profitable. They are probably getting to that level right now. They are not going to have the earnings they had two years ago when oil was 100 a barrel. These are welloiled machines. I hate to use that pun. They are making money. Youll sart seeing the drillers start putting more platforms out there. You are going to start seeing its going to start equalizing. Shanghai down 6 . Fear maybe the pboc will devalue their currency yet again. Are you guys talking about that what happens if they continue this move to devalue their currency . Its the only talk around the water cooler these days. On the way up was all about china, globalization. It was all about exponential growth, bigger slice of pizza for all countries. This is the other side of the mountain. Markets move a lot then they consolidate or correct. China is trying to get things in control. The fact they are polishing and pushing and pulling the levers speaks volumes. As far as energy, of course pete is right and citi is right. If you are not the type of investor who lives by the stop watch or lives and dies only quarter to quarter, its a wonderful space. Weve already mentioned it has political implications. Its no secret probably a republican president would be a little kinder to the notion of building export facilities whether its liquefied natural gas, pressed natural gas, crude oil. This space takes on an added dimension. Finally when it comes to equities, most traders on this floor really believe that its the question of our fed being first making the uk first for normalization. That doesnt count for the funkiness of the equity markets. Do words matter . The u. S. Is managing the group 2. 5 , would that change the discussion . Do you think its possible and america still grows throughout that . Many in the middle class and many countries around the globe including the u. S. Would say yes to that. It would be hard for the Federal Reserve and central bankers to admit it because they are on the wrong side of the policy Chronological Order to make that statement. That is a good way to put it. Thanks so much. 50 minutes to go in this session on this tuesday. The dow is down 42 points at the moment with those cross currents about the consumer. Coming up, the space race is heating up in the private sector. Elon musk and Richard Branson vying to blanket the earth with satellites that would provide Internet Access to every corner of the globe. Jane wells has a special report from planet it. Why the former gulf oil ceo expects crude to fall to 30 a barrel by year end. Before earning enough cash back from bank of america to buy a new gym bag. Before earning 1 cash back everywhere, every time and 2 back at the Grocery Store. Even before he got 3 back on gas. Kenny used his bankamericard cash rewards credit card to join the wednesday night league. Because he loves to play hoops. Not jump through them. Thats the excitement of rewarding connections. Apply online or at a bank of america near you. Or building the best houses in town. Or becoming the next highlyunlikely dotcom superstar. And us, well be right there with you, helping with the questions you need answered to get your brand new business started. Were legalzoom and weve already partnered with over a million new Business Owners to do just that. Check us out today to see how you can become one of them. Legalzoom. Legal help is here. And i am a certified arborist for pg e. Ughes i oversee the patrolling of trees near power lines and roots near pipes and underground infrastructure. At pg e wherever we work, we work hard to protect the environment. Getting the job done safely so we can keep the lights on for everybody. Because i live here i have a deeper connection to the community. And i want to see the Community Grow and thrive. Every year we work with cities and schools to plant trees in our communities. The environment is there for my kids and future generations. Together, were building a better california. Copper is still on the skids falling to a sixyear low. Concerns china would slow its imports of the most economically sensitive industrial out there copper has been considered a good leading indicator of Economic Conditions and there it is, sixyear low. Weve got tjx popping to an earning high. The retailer posting 6 rise in samestore sales in the same quarter. Strong consumer traffic up for a fifth consecutive quarter. Wayfair is falling after a report forecasting shares the retailer will fall to 12 a share. That report said wayfairs growth will hit a wall, compared it to zulily. It found a way to lose money on a scaled revenue base of 2 billion. We asked the ceo last week when they plan to turn a profit. Yesterday he was with us. Wayfairs ceo. He had nothing but positive things to say about his companys financials. We are in a great situation. We have sales at about 2 billion run rate. Our direction business grew at 80 . Which are in a pretty good position. We think this is only the beginning for us. Those marketing costs are a key factor here. The costs to acquire customers. If you want a bar stool and the best deal on one and wayfair wants to find you the cheapest offer, it costs money to get in front of people. They just get it to you. Its a metric we used to follow in the 90s. Cost of acquisition of each customer. As long as that remains high, its a tough thing to pull back on. Once you convinced a customer to wait for sales at the best price possible, they are not going to buy. They get a repeat customer and that will help bolster against some of these costs. If it loses momentum, thats the argument shares will fall. Lets talk about crude oil and gasoline. Crude oil moving higher. Yesterday it closed at 41. 87. The last time oil was at these levels was in march of 2009. During that time the National Average for a gallon of gasoline back then was 1. 99. We are back to this sixyear low on oil but gasoline is 73 cents higher than that right now. Joe petrowski joins us now. Whats your take on this . Thank you. The problem we have is we have not built a refinery in the United States in the last 35 years. The problem is we are doing it with only 150 refineries versus 300. The concentration of refineries along with the fact that you have larger refineries, admittedly more efficient, but that hurt us. We are exho we are exporting petroleum products. Youve seen closures of refineries that are tight. Gasoline is a processed commodity, no different than bread comes from wheat, gasoline comes from crude oil. One other thing important for policy makers, its transported. It is the cheapest and safest way to move product. We are relying more and more on rail which is expensive and dangerous. Why would you close refineries . Maybe they are outdated . Maybe they are not as efficient as they should be. Why wouldnt they be building more refineries if they can make as much money as it would seem to be because of the margins they can make on gasoline right now . Who wants a refinery in their backyard . The epa put on a lot of restrictions and costs on refineries. If you were sitting on a board and looking at the future of energy, given the fact we demonized hydro carbons, why would you want to build a refinery and get involved in the process . Just the other day when bps refinery in chicago went down, the price of gasoline spiked 20 cents. Arent their refineries along the Mexican Border we can turn to . Do we have to solve this internally . We do import a lot from canada to the east coast. Thats the main source of product for boston. We do import some from the uk into the east coast. But the fact of the matter is the u. S. Today is the Cheapest Crude Oil barrel in the world. So refiners want u. S. Product, not foreign product. We can build refineries in mexico. We have pipelines to carry nat gas and crude to mexico. I expect you will see something. You understand the frustration some people have when we do this kind of analysis of gasoline prices, when they are not the old joke about you the goes up like a rocket but comes down like a feather. Are we imagining that or is there Something Else going on beyond the traditional supply and demand equation in this industry . You used to work for one of these companies. You ran one of these companies. From the consumer standpoint, we are being taken out and made to pay more than we would otherwise based on supply and demand. You have a 20 a barrel crack margin which is 50 cents a gallon, when normally its about 10. So we dont have enough refining capacity. Again, our transportation, we really need for example, golf was he gulf was head quartered on the east coast seen though we distributed several thousand gas stations over 30 states. To move product by water we had to use u. S. Flagged vessels which increased the cost probably 20 cents to 30 cents a gallon. Its a finished product. The consumers are not being taken advantage of. Policy makers have accelerated the closing of refineries in this country. Weve become too vulnerable to large refineries. We have not built the increased pripline we need to build. Thank you, joe. Joe petrowski, foreman ceo of gulf oil. We are heading to the close about. 38 minutes left in the trading session. Down 35 points on the Dow Jones Industrial average. Two billionaire entrepreneurs. One space race. Elon musk and Richard Branson going satellite to satellite to provide Internet Access to every corner of the planet. Jane wells has the latest on this faceoff. vo me . I dont just wait for a moment. I watch for the perfect moment. The one nobody else sees. And when i find it i go for it. announcer at scottrade, we share your passion for trading. Thats why we give you the edge, with innovative charting and trading features, plus, powerful mobile apps so youre always connected, wherever you are. Because at scottrade, our passion is to power yours. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep it all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberry apple scones smell about done. Ahh, youre good. I like to bake. Add new Business Services with at t and get up to 500 in total savings. s long musk and Richard Branson are racing to get their satellites into space to provide Internet Access to the most farreaching corners of our planet. Lets go to jane wells in one of those farreaching corners of our planet. Reporter yes. We havent fallen into the ocean yet, bill. This is a space that investors and space geeks want to watch. Two companies backed by two billionaires want to launch hundreds, maybe thousands of satellites for the purpose of bringing highspeed Internet Access everywhere. One is one web which is backed by Richard Branson, formed by a guy who used to work at google. Signed a deal with airbus to launch a satellite. Plans to succeed where others failed. This is very hard, very complex and easy to fantasize about all the things it could do and hard to kick out fantasy and come down to reality. Reporter heres the critical piece. One web says it has priority in reusing the necessary spectrum because its gotten approval from International Regulators in charge of that stuff. Spacex wants to do the same thing in the same spectrum. This is video shot by musk in seattle last january announcing spacexs new satellite division. Google and fidelity invested a 1 million in it. While one web has the goahead from International Regulators saying its first in line. Spacex has an application before the fcc to experimentally use the same spectrum. The question may be whether you have filed first and gotten the okay first gives you priority or whether getting your satellites up first gives you priority. Possession of the bandwidth is 9 10 of the law. This could involve more law than science. Richard branson questioned whether there is enough bandwidth for two to share. One web investor believes spacexs satellites could run into theirs. Spacex saying thats almost impossible. Well find out. Jane, before you go, hang on a second here, gang. My latest issue of elle magazine came in the mail. Its a big issue. You got yours . It its their 30th anniversary issue. They are playing off that 30 thing. They are highlighting these women who are 30 years old who were born when this magazine was born. Reporter thats not me. Lo and behold, who do they highlight . I bribed them. My coanchor. Look at that. As always, she is towering over everybody. See . Youre not alone. She is so beautiful, i hate her guts. Kelly evans is such a vapid, shallow, modellike person. I know kelly and you have been cringing about this. How did the photographer get the four of to you relax it . Is an awesome pic. I would rather read an indepth profile about the two of you. There will be one in aarp magazine soon. Being featured with this group in particular is fantastic. This is why its hard to talk about it. Its lovely. Truly, how did they make you relax . Its hard to do that. It takes a team of five dozen. Then there were these wind fans and the sun kept going in and out and the shade screen was coming up and down. The glamour of glamour. That says kelly evans. At least we were in blue jeans. Thank you so much for mentioning that. Thank you, jane. Youre welcome. Love you. I aspire to be jane wells. Oh. Sue oh, my god. Im sorry. I was reading my elle magazine. Its really heavy. Thats because its the fall edition. Thats always the biggest edition. Kelly, you looked great. Sue, i love you. Thank you. Love you, too. Bill what . Ive got nothing. Heres whats happening this hour. I will tell you. We start on a serious note. A manhunt under way for a young person in a yellow tshirt who left a backpack with explosives near a popular shrine in bangkok monday. The explosion killed at least 20 and injured more than 100. Surveillance videos show him taking off that backpack before he left the scene. Republican president ial candidate marco rubio campaigning at the iowa state fair. He walked through with senator chuck grassley. He later stepped up telling the crowd he wants to keep america safe from the threats around the world. Vladimir putin taking a craft down to the bottom of the black sea. Went down 272 feet to see a thousandyearold sunken merchant ship. He said he hoped that find would shed light on russias historical development. Tom brady plans on attending tomorrows federal curt hearing in new york city. During last weeks hearing, the judge said the principals in the deflate gate case did not have to show up, but according to reports, brady wants to be there. I dont blame him. Plus its a little too hot to practice these days. Right, guys . Back to you. One guy yelled to kelly, she looked like rizzo. Thats perfect. Thank you very much, sue. All right. 30 minutes to go. There is rizzo right there. We are talking about the youngest congresswoman ever elected. Just extraordinary. You know the date that was taken in her district is where the two guys escaped from the upstate prison. She is dealing with hunting down these guys and had a million things going on and making her train. Thats what this is all about. Very good company. 30 minutes to go into the close. The dow is down 41 points. The s p is down about six and nasdaq 33. I love making you squirm like that. When we come back, the most important half hour of the day is upon us. A top trader will tell us what he is watching. Robin hood robbed from the rich to give to the poor. Maybe an investment app named after the legendary archer makes sense. Who is getting rich from it . Robin hoods cofounder will join us to explain. What if there were only one kind of dog . Then it would be easy to know everything about that one breed. But in fact, there are over three hundred breeds of dogs. Because no one can be an expert in every one. An app powered by ibm watson will help vets tap Specialized Knowledge in the cloud for every breed. And whatever else walks, flies or slithers through the door. Ibm watson is working to make medicine smarter every day. No students ever been the king of the campus on day one. But youre armed with a roomy new jansport backpack, a powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. We are inside that critical last half hour of trading. You get volatility on low volume. What is going on catching your attention right now . What catches my attention, china was down 6 . We didnt see follow through here. If this happened last tuesday or wednesday this market would have been down 200, 300 points easily. I think we are immune to it right now. There is so much volatility in china and news coming out that is important. The market kept rallying off it. It could catch up to us at some point. Are we immune to it or being complacent about it . I think weve been complacent overall. Theres been a lot of stuff that could have taken us lower. That is probably a good sign. Everyone keeps buying the dip. You are going to buy the dip and be wrong. Thats what you have to look out for. Not watching a whole lot. Its been so tight. What we are trying to trade is some range. Oil has been one thing we looked at. It bounced off technical levels. Oil had a fiveyear bearish thought process as far as funds go. If that could raly, you could see capitulation on shorts. There is not much left to press as a seller. Robin hood associated with sherwood forest. The legend is developing a reputation on wall street. The robin hood app is helping investors participate in the market without fees. Robin hood has trans yakttrans transacted over 1 million. Joining us is the cofounder. Welcome back. Glad to be here. Tell us, you are saving people 22 million on this amount of revenue through the app. How are you making money yourselves . Thats right. We make money in a number of ways brokerages and banks make money. One is collecting interest on customer cash balances. Uninvested customer cash sitting in accounts, we can lend out and collect Interest Rates. Additionally, we make money through Premium Services such as margin lending. Ive got this neary. Let me test it on you. You and the cofounder of the company, you got the hook. You dont charge commissions on trades. You do have a Premium Service where you are going to charge if there is margin trading. For a simple trade with no margin there is no commission. You get a fiveyear plan then that says once youve got enough customers that like the service of robin hood, then you start to introduce small commissions and it starts to grow, then you start to make more money that way how far off the mark am i . That is not the plan. Youve got to look how robin hood has doing since launching to the public since march. Weve done over 1 billion in transactions. Growing extremely quickly. The one thing a lot of people dont realize is all that growth has been on one platform. Weve been available on iphone up until last thursday when we launched on android. The demand from the community for android has just been tremendous and overwhelming. We had more than 50,000 people sign up in the first day that we were available on android. Its been tremendous. The response hasnt just been because of commissions. We became the First Financial app to win an apple design award earlier this year. Not just first investing app but financial app. People really love the product. I think as long as people to continue to enjoy the product, more and more people will use it. The existing Revenue Streams are more than enough to create a longterm sustainable business. If thats the case, if this model you are using is so successful, why isnt anybody else doing this . I think the problem has been that there just hasnt been a lot of new stuff in this space in the past several decades. Old technology, old processes, its hard to start a broker dealer from scratch. It takes industry experience. It takes engineering. Its not an easy business. What weve done is not easy. Also for an incumbent, which commissions maybe make up 20 , 30 of the revenue of these businesses, its not so easy as a Public Company to just forego that additional revenue stream. For a startup building its systems from scratch, its another story. Your average customer 26 years old. 25 are firsttime investors. If anything, if it grows the pie, thats great stuff. Thank you for joining us. Thanks a lot. Glad to be here. Glad tenet, cofounder of the robin hood app. A bond investor making comments on the fed. This is going to sound maybe not unfamiliar, but Jeffrey Gundlach is saying its a bad idea for the Federal Reserve to hike rates with junk bonds at a fouryear low. Specifically, Jeff Gundlach saying, to raise Interest Rates when junk bonds are nearly at a fouryear low is a bad idea. He said this in a telephone interview. This is a sentiment hes been getting through some time that the fed is in a box, so to speak. It wants to raise rates but feels it cannot begin Economic Growth has not come to what many would expect to be a robust area for the fed to want to keep rates to the up side here. Also interesting, he made these comments that the fed wanted to raise rates but couldnt. Making comments on the commodity space saying that copper and Commodity Prices reflect Global Economic weakness and that, china should be a huge concern, it is the second biggest economy in the world. Bearish comments from Jeffrey Gundlach, noted bond fund manager at doubleline. He thinks the fed shouldnt raise rates before the end of the year. Back to you. Goes back to the metals discussion. Oil down there, too. Christine lagarde said the same thing. Wait until next year. I dont know. My gut tells me that if its not september it will be december when they just raise the rates that one time. Get the second guessing over with. Begin the process over a longer period of time. I think they are just itching to get this started. I expect to see it later this year. Again, the analysis of the words we heard from janet yellen shows this year is one of the most popular fradses including data dependent. There is a house boom. Its not the kind we usually think of when we hear those words. It could be bad for the economy. Diane olick will be here to explain. You may think you can put off checking out your Medicare Options until youre sixtyfive, but now is a good time to get the ball rolling. Keep in mind, medicare only covers about eighty percent of part b medical costs. The rest is up to you. Thats where aarp Medicare Supplement insurance plans insured by Unitedhealthcare Insurance Company come in. Like all standardized Medicare Supplement insurance plans, they could help pay some of what medicare doesnt, saving you in outofpocket medical costs. Youve learned that taking informed steps along the way really makes a difference later. Thats what it means to go long™. Call now and request this free [decision guide]. Its full of information on medicare and the range of aarp Medicare Supplement plans to choose from based on your needs and budget. All plans like these let you choose any doctor or hospital that accepts medicare patients, and there are no network restrictions. Unitedhealthcare Insurance Company has over thirty Years Experience and the commitment to roll along with you, keeping you on course. So call now and discover how an aarp Medicare Supplement plan could go long™ for you. These are the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. Plus, nine out of ten plan members surveyed say they would recommend their plan to a friend. Remember, medicare doesnt cover everything. The rest is up to you. Call now, request your free [decision guide] and start gathering the information you need to help you keep rolling with confidence. Go long™. Welcome back. Here we go again. There is a housing boom and one that could have a dramatic impact on commit. Diana olick joins us from washington with details on this trend. We talked a lot about this on this show. Renter nation. The big move away from homeownership to renting. I want to hone in on rental construction. Apartments going up everywhere. Is it too much . When you hone in on the numbers, they do seem staggering. In over a quarter of the nations biggest markets, apartment construction is higher than average. In new york city, its more than four times higher. In boston and newark, three times higher. Apartment construction is higher than normal in philadelphia, houston, seattle, san francisco, l. A. , dallas, all of this according to trulia. This as Single Family Home Construction is well below average. Texas is the exception because they are building everything there. Are we overbuilding . I say no. Multifamily apartment construction dropped off in the 90s and didnt move. Multifamilies sat. Now we have increased rental demand and we are making up for lost productivity at the same time. Vacancies at rent are at record highs. Demand are coming from downsizing baby boomers who dont want to own any more. The one concern is in the luxury sector we are starting to see demand for that cool off. Yesterday the journal was pointing out the building boon has been on the luxury end. In the middle is where rents are surging. Precisely. Thats the issue we are having, especially here in d. C. We saw a lot of construction and new units come online in the last five years. They are high end. Theyve got the granite, stainless steel everything. There is so much unaffordable for the people who are demanding rental housing. What we need is more affordable rental supply. We need more Affordable Rentals and refineries. 12 minutes to go into the close here. Dow is down 35. The Home Builders are in multiyear highs. You heard our guest says he wouldnt play around with them. People are. Nevertheless, s p down six. Nasdaq down 32. Market watchers trying to gauge where oil will go. Quincy crosby says oil prices have become synonymous with Global Growth prospects. Well talk about that when we come back. A new season brings a new look. A chance to try something different. This summer, challenge your preconceptions and experience a cadillac for yourself. The 2015 cadillac srx. Lease this from around 339 per month, or purchase with 0 apr financing. Dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is, can your business deliver . Welcome back. 8 1 2 minutes left in the trading session with the dow down 28 points. Joining us with her view of the world, Quincy Crosby from prudential financial. You are watching oil. Absolutely. As a proxy for what . The market believes its a proxy are for growth, we have to see it as a proxy for growth. Supply is up dramatically. Thats something the market doesnt seem to grasp. Maybe its not so much a proxy. Its not dr. Copper all over again. Except it is. Copper is at sixyear lose. The thing is supply has gone up exponentially. If the market sees it that way, weve got to look at it that way, too. Do you agree with the call from citi they would buy Energy Stocks right now . Given that citi was one of the very first people thought he was crazy to say oils coming down, i have to watch that. It carries a lot of weight. Dividends are nice in the big integrateds. The one you dont have to worry about in terms of cutting the dividend. Thats the fear. They have been spot on. If its a supply story, do you like the cyclical names, Consumer Discretionary names . Are we setting up for a boon in this country . We are growing. Regardless whether the treasury market believes janet yellen is never going to give rate hikes, analysts believe she is. She is not going to kill the Housing Market. That Housing Market is precious because of the derivative play of it. If they go ahead, we like housing stocks. We like financials. And the fact is the consumer in the u. S. Is spending money, albeit carefully, but we are spending. Regarding the Housing Markets, would one rate increase do some damage . Initially, maybe. I think afterwards, as long as she uses the word gradual, gradually, the market will get the hint. This isnt going to kill off the economy. It isnt. They need to start moving. Its like having children. There is never a good time to start raising rates. Thank you. Well take your word for it. I hadnt thought of that, but youre right. Six minutes to go. Well be back with the close countdown reviewing the day. After the bell, its mcdonalds on its way to offering allday breakfast. That may be a turning point for the company if the opinion of the breakfastarians means anything. Well explain. You are watching cnbc, first in business worldwide. Y making thinkorswim better. Like a custom screener on your desktop, that updates to all your devices. And you can share it with one click. Wow. How do you find the time to do all this . Easy. 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Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep it all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberry apple scones smell about done. Ahh, youre good. I like to bake. Add new Business Services with at t and get up to 500 in total savings. Coming up on the threeminute mark to the closedown, bob pisani joins me. Last night in china. A 6 decline in the shanghai index last night. Now ordinarily you would think that would lead to a huge selloff elsewhere in asia. As the sun continued to move in europe, but it didnt. There we are down 6 on shanghai. The dow opened this morning up, little lower. It was watching the walmart numbers, among other things. We open lower. Then we were positive briefly. Down 27 points right now. Within the dow a tug of war among the big retailers. Home depot went up 2 , 3 while walmart was down about 3 on those earnings numbers there the gain by home depot and decline by walmart. China, security finances corporation that buys stuff for the government didnt want to buy and made a statement on friday saying we are only going to buy in cases of real emergency. People here saw they werent going to buy and sold off. China is now completely dependent on this help. China and crude oil was the dominant player in the market. You saw the ripple effects today. Commodities with sixyear lose. Copper and lumme num. Oil and most of the other ones here. Wti finished higher today. Brent continued lower. We are at sixyear lows in all the major commodities. New lows in the material names again. Another one i want to point out. There we see a rise in oil if we could put up the xsd, this is the semiconductor index. That has been weak since june. Thats when the china market startened to weaken. Smart phone growth. Smart phone growth was very linked to china. This is when china started slowing down and the Semiconductor Group started slowing down. Apple started selling off. Weve seen weakness in all the usual semiconductor. Rambus, skyworks, corbo. There are knockson effects from this china thing that arent necessarily obvious. You see it with the whole Semiconductor Group. Thank you, bob. We are going out, not a volume tail day for the major averages, but some significant moves for individual securities and those commodities will continue to move lower what to make of it . More coming up right now on the second hour of the closing bell with the 30yearold wonderkin herself kelly evans. Ill see you tomorrow. Hi, im kelly evans. Dow down 32 points. S p giving up five. Nasdaq the underperformer today by a large margin. It was down almost 32 points. We had many groups. Oil. Metals at sixyear lows and concern after that 6 selloff in china overnight continues. Joining todays panel, we have dan greenhouse with our own sara eisen and steve grasso will join us in a moment here. You cant read anything into today. S p was down five points, russell down 10 points. Its late in august. I dont like the slow august in place of analysis. Thats the reality. If the two of you were not on this panel, i would not be here. It sounds like a dodge of the question. It is quiet and not unique us to. The market feels direction lechlt you are waiting for a federate hike next month or the potential for a federate hike. The china story has been out there the greek story has been out there. You ask late in august, what is meaningfully going to move the stock market and not much. You realize today, this could be a heck of a buy. Home depot, good. T. J. Maxx good. Consumer discretionary finished as the best performer. Reaction was upbeat and optimistic. Housing starts near an eightyear high. Permits were down double digits. The Home Builders have done fantastically yeartodate. They are all up 20 yeartodate. Pulte is the only one down. Bill mueller has been bullish on Home Builders. Gundlach reiterated his view homeownership in this country may not be coming back to anything like weve seen if that its case and diana olick has been doing a ton of reporting, if we are moving into a rentaldriven market, what implications does that have here . I think the gundlach view is long term on the structural, not millennials not buying homes which diana calls renter nation. Temporarily the Housing Market is doing well. Cramer was talking this morning saying banks are causing the change in behavior and they are lending more. They are giving out more mortgages because they are gearing up for a better economy and a fed Interest Rate hike and more ways to be profitable. Thats driving numbers like we saw today. Yesterday we saw home builder confidence. Fortress, subprime lender springless has been profitable. The homeownership race peaked ought close to 70 . Its down 63. 5 . There is something going on millennials where they view homeownership differently than people our age did. At the same time, its hard to argue that there is something to be said for owning a home. Im not 18 but i remember living in my moms basement. I imagine kids dont want to be there any more than i did then. Its not about household formation. You can form a household and be a renting household. Look at oil, look at metals today and go back to our favorite dr. Copper. Is the dr. Copper argument, the metal that senses industrial demand, tells us what is going to half. Its at a sixyear low. Saras point is important. The crb index or any commoditybased index you want to look at peaked four years ago, five years ago in 2011. Theres been an acceleration lately focused on oil. We should Pay Attention to it. Commodities have been declining year after year for four, five years now. As china slowed. People dont realize china makes up more than 50 of Global Exports of commodities like iron ore and other commodities. They are a big buyer of crude oil. What changed last summer to cause this second leg down . The answer is the strength in the dollar. What youve seen since last summer has been unprecedented. I like what you did there. Steve grasso joins us. Levels we are are stuck. Welcome to the set here. We are talking about this market, the china influence across the metals and oil. In the journal suggesting we might be in the middle of a global recession. That is a huge bifurcation. Whats the s p 500 going to do. I would assume you cannot be bulletproof forever. The s p has to the idea its the only choice, there is no other choice besides u. S. Equities is getting long in the tooth. It might take longer to play out. What does it dollar do here . Back in the spring we saw almost a onetoone correlation. What is the case . Do we like a strong dollar, a weak dollar for higher equities . Its all about the rate and velocity. When we start to see the dollar rip higher, everyone gets a little afraid. They pull back their equity positions. If you have slow and steady moves, which i dont think is going to be the case, unfortunately, well meander around these levels and most likely rip higher. We have experienced a nearly unprecedented rate of increase in the dollar since last summer going back 40 someodd years. Yet the stock market is largely speaking unchanged from levels of last summers. If i told you the trade rate index would rise 14 , where would you have told me the s p would be . I agree. Now you cant argue credit spreads widening are worrisome. Emerging markets collapsing are worriso worrisome. The Retail Investor looking at china growth from 11 down to what now . The urge to merge picking up across the banking industry. Bb t buying national pen nearly 2 billion. Its the second time. We looked at the S P Regional Bank index. Of it we had 91 members to choose from. We decided to put a screen to the pest here. We screened only the ones with market caps between 1 billion and 5 billion. That got us down to 63 names. Higher dividend yields got us down to 34 stocks. Positive yeartodate returns to give us some sense of some momentum, some relative strength in the market so far. That left 25 stocks. Interestingly here, we went across the geographic spectrum here. Names on the list include pap west bancorp. This is a Los Angelesbased lender. 60 offices. You can see yeartodate up about 3 . There is bok financial. Parent company of the bank of oklahoma. Shares up nearly 10 . Webster financial up 17 , 18 yeartodate. Down for the session but yields 2. 4 . Some of the names perhaps some investors are looking at in terms of the Regional Bank space, those are among the ones that fit those criteria. If people do believe Regional Banks are going to consolidate more, those are potentially some of the ones they are looking at. Interesting those are the ones that passed the screen. Good stuff. Thank you so much. Are we going to see finally more activity in the space . For a lot of reasons, regulation, size of some of these firms, questions about the future profitability of the industry, theyve been holding off. When you read through bb t comments, they Start Talking about pulling back on buybacks. Just settle in to make all these things more efficient and transitions more positive for the name. If you look at the buybacks, thats been one of the crutches that have been holding up this marketplace. When you gave me your itemized list what i thought would have happened, the buybacks have been a crucial leg on this table with the market hanging in here. Art cashin this morning was saying a lot of guys on the floor talking about the impact of buybacks in the green earlier. How much are people following these flows to figure out the market . Tremendously. Last week when you saw the market take the hit off the china headlines, what happened . You heard Goldman Sachs make positive comments on their buybacks. These are at record levels yeartodate. Historically, buybacks usually dont happen at the bottom of markets. They usually happen at the top. Its not the cause of it, but coincidental. Where does that leave us if we want to talk about Regional Bank consolidation . Is this a fed play . Profitability is ultimately going to be a contributor to decisions to merge or not. If various ceos in the Regional Banking industry think it is going to be in their benefit in a low Interest Rate emerge, thats what they should do. That might not be the basis for a higher rate hike. A lot of peoples point is lets not confuse a higher fed funds rate with a rising rate environment. This is something we saw during the last cycle. We very well may see again. Thats what janet yellen has been telling us a million times over, right . Just one liftoff, dont focus on that. Focus on the pace which remains accommodative. That suggests its not going to be a stair step rate increase. Steve, give us those levels you are watching. We are stuck with the s p cash 2096. Stuck between 50 and 100 Day Moving Average. The 200 Day Moving Average is below at 2077. We tested that a bunch of times. Thats been support. The true test is how much longer can we hold that level . Keep an eye on 2077 s p cash. Will do. Appreciate it. Be sure to stick around and catch steve on fast money at 5 00 today. You may be paying more at the pump. Could mean more green in your portfolio. How, coming up. Another day, another fight in the wireless. Sprint to do away with twoyear contracts, sparking a major battle on twitter with the ceo of tmobile. The fda just minutes away from deciding whether to approve the socalled female viagra drug. Well bring that you decision soon as it is released. You are watching cnbc, first in business worldwide. trader vo i search. I research. I dig. And dig some more. Because, for me, the challenge of the search. Is almost as exciting as the thrill of the find. announcer at scottrade, we share your passion for trading. Thats why we rebuilt scottrade elite from the ground up including a proprietary momentum indicator that makes researching sectors and Industries Even easier. Because at scottrade, our passion is to power yours. Sprint shaking up the wire loaf sector announcing it is doing away with twoyear contracts and subsidized phones. Sprint users can upgrade to any new edition of the apple phone. The wars have morphed into the ceos of sprint and tmobile. Earlier sprint ceo discussed the public feud on squawk box. Hes been beating up on our employees way too long. Thats over, right . Sprint is doing well. Sprint is in a path to recover. In case you missed some of the back and forth between these guys, here is just one the sprint ceo tweeted late yesterday. A play on the straight out of compton movie. You can see there. The tmobile ceo replied, straight out of ideas. There are many, many more between these two. Joining us to discuss the fallout is andrew bird from wireless week. Welcome to you. Is sprint getting down and dirty, what we can expect from the company . Yeah. I think there is a bit of theater involved. I also think john legere as the spark plug at tmobile is a big part of their success lately. Sprint is realizing that they need to hit back. Is it the fact tmobile made Investment Grade coverage, doing more innovative things on the planned front calling itself the uncarrier . Will we expect sprint to respond in kind . I think its a combination of the two. They initiated aggressive pricing and headed by a very outspoken ceo. Its an effective combination. That said, i think sprint definitely has to respond in kind, as you said. Are we Getting Better deals . Does it mean anything financially . Thats the question. Maybe in the short term. They are working on pain points. Tmobile initiated that. Im not sure we are seeing serious discounts. Verizon and at t are way ahead. While tmobile might have forced a few moves, verizon and at t are controlling the field. I think we have to figure out what this means for prices Going Forward. I think its easier to sit here and say getting rid of the twoyear contract is going to reduce prices. Im not sure thats the case. Its going they have to play in the sprint plan 22 a month. It will make it easier to understand your bill. Ultimately, do you think prices are going to rise for the average wireless consumer Going Forward . They are certainly not going to go down significantly. Youll be paying a good premium for your wireless service. Over the long term its a hard question to answer, absolutely. Its going to come down to where tmobile and sprint end up as far as a possible merger in the future. We should mention sprint shares are up more than 5 today. Im sure speculation will continue. Well see with the new iphone coming how consumers respond. Thank you for joining us. Thank you. Weve got a pair of earnings alerts. This pair, they are moving in opposite directions. Analog devices up about 5. 5 , 475,000 shares traded after the Company Reported i eed earnings share 77 cents. A revenue better than expected. 863 million. Analysts looking for 845 million. They see their Current Quarter earnings per share between 79 and 87 cents. Q4 revenues above analyst consensus. Shares are higher. Shares of Canadian Solar going to the downside down by about 5. 5 and 160,000 shares of volume. Company reports 31 cents over the 13 cent estima. 637 million versus 593. They gave weak revenue guidance for the Current Quarter and full year. They see revenues for the Current Quarter between 570 million and 620 million. Analysts looking for 669. A Solar Company that is on the skids in after hours on relatively light volume. 5. 5 to the downside. Back to you guys. Dom, thank you. The race to rebuild our energy grid. Tough new carbon emission standards leading to a boom in Natural Power plants. Jackie deangelis will give us a close look at one. Mcdonalds on the verge of offering an allday breakfast nationwide. Could give them a big boost. Details. Backpack, a powerful new dell 2in1 laptop, and durable new stellar notebooks, so youre walking the halls with varsity level swagger. Thats what we call that new gear feeling. You left this on the bus. Get it at the place with the experts to get you the right gear. Office depot officemax. Gear up for school. Gear up for great. Utility companies feeling the heat to close old power plants because of the power rules. Jackie deangelis is in woodbridge, new jersey. What do you see . Good afternoon, kelly. Youre right. New epa regulations are taking coal plants offline. That is making room for new power plants fuelled by natural gas like the one we are at here today. This has been under construction two years. It generated 700 jobs at its peak. They are fueling the future. This is a combine cycle gas plant. The Vice President of xoetive Power Ventures explained why new regulations are prompting these projects. There is by some estimates between 60 and 90 giga watts of retirements that will occur. They are going to have to be replaced. To give you perspective, one giga watt powers about a million homes. Theres going to be a massive amount of conversion that needs to happen here. As long as we continue to build out the infrastructure, the pipelines and get nat gas out of the ground, we should be okay. It all comes back to this race to rebuild and infrastructure is very important. I know youre jealous of the hard hat, but you dont have to say it on the air. That looks like such a cool project. Weve seen more regulations coming from the Obama Administration today if we have a change in 2016 talking about rolling back these initiatives, does that put into jeopardy any of these conversions . These conversions are the wave of the future. There has to be a little bit of a compromise when it comes to the emission standards and the fact we have to power this country and do it in an appropriate way. Since these projects have come online and so much investment has gone in them, they are the top standard of technology and giving us the Cleanest Energy options we have available. I dont think you are going to see these projects come under fire. As technology develops, im sure theyll get cleaner with time. Jackie, thank you. We love the hard hat. Jackie deangelis. Great shot. This is a huge and hugely costly shift we are witnessing here. Im in favor of less is more. In a general sense, there is something of a tradeoff between completely free markets in terms of Energy Production and what you have in the United States. What i mean to say, you look at china where there is generally speaking total laissezfaire and you cant breathe and need to wear a mask. 3 4 of chinese electricity are coal fired. Sure. So there is something in between. Finding that thread or threading that needle is where you want to strive for. Its a worthy goal to achieve. It still remains to be seen there might be some clean Coal Technologies longer term prove to be efficient on this front. There is going to be innovation that comes not in terms of converting coal to another fuel source but making use of some of the trends that happened over the last couple of years. The question will be politically whether there is the appetite to spend updating our Energy Infrastructure and making us actually a leader when it comes to infrastructure and Climate Change and new technology which has been slow. Right now the hot button issue when it comes to energy will be on exports and Keystone Pipeline going into the election. Politics aside, if only we could borrow money with a relatively low Interest Rate and do this. No excuse. That tesla you drive is only as clean as the grid that backs it. Propane tanks exploding on the ground at a hot air balloon ride business near the Las Vegas Strip this morning. The pilot was hospitalized with burns on his arms and legs. The cause of that fire is being investigated. New Jersey Governor Chris Christie and new jerseys two senators meeting with federal transportation officials to talk about how to pay for a new rail tunnel under the hudson river. That get together did not include new York Governor Andrew Cuomo who is not as keen on the project. His office said he was not invited. Former basketball star Michael Jordan testifying saying he values his image very preciously. He is suing a Grocery Store chain for using his image without permission. His Attorney Says jordans name is worth millions of dollars. Jane rosenberg who drew the muchcriticized sketch of tom brady at the deflate gate hearing last week says she received about 20 offers to buy that drawing. No dollar figures given yet. The Sports Museum in boston asked her if she would loan them the sketch. Rosenberg hasnt decided what to do. She got highly criticized for that particular sketch. That is the cnbc news update. Back to you. She might be able to make a bit of money off that. Further proof, notoriety sells. He looks like the crypt keeper. That is close to some of the criticism on social media. Most people thought it was from people outside of the boston area. You never know. It just goes to show, its not the skill, its the lack of skill in this case or maybe her unique perspective. Her perspective. Better way to put it. Thank you, sue herera. You heard of the little blue pill, the fda is set to approve or reject the little pink one. The future of the female viag race next. Google is unleashing its human robot into the world. I was able to negotiate tough terrain by itself. Is it the next step in the rise of the machines . My name is mark amann. Im a gas service rep for pg e in san jose. As a gas service rep we are basically the ambassador of the company. We make the most contact with the customers on a daily basis. I work handinhand with crews to make sure our gas pipes are safe. My wife and i are both from san jose. My kids and their friends live in this community. Every time i go to a customers house, their children could be friends with my children so its important to me. One of the most rewarding parts of this job is after you help a customer, seeing a smile on their face. Together, were building a better california. Here is a look how we finished the session. Dow shed 33 points. Nasdaq down about the same amount of points. It really got hit harder. S p was down five. Crude, an interesting story of 1. 5 . Copper, other metals, sensitive to industrial demand globally at sixyear lose. Viagra may be the most ubiquitous medical brand in the world. Type it into google and you get more than 4 million search references. A female version may be nearing fda approval. Meg terrell is here with the latest. We are expecting to hear today, is that right . Any time this afternoon we could hear whether the fda will reject or approve this drug. The drug had been rejected twice before. Now it seems maybe the tides could be turning. We contact call this the female viagra. It doesnt work the same way viagra does. It works in the brain. This is made by a private Company Called sprout pharmaceuticals. It had problems because of balance of safety and efficacy. Low Blood Pressure and fainting which can be exacerbated if people are Drinking Alcohol while taking this drug which is taken chronically. If it is approved, it will probably have strict post marketing requirements. Did they change their mind . What was it after the first two rejections seems to be giving this serious consideration to be on the market before we know it . Gender equality. Thats one of the things. They had to run more studies. There has been an intense lobbying effort claiming gender bias at the fda. Folks take issue with this, including the fda, of course. Its interesting scenario. Rewant to get more on this drug. Joining us is director of the division of euro gynecology at mt. Sinai roosevelt hospital. There is demand. I have patients every day saying im in a wonderful relationship, i love my partner and yet my desire isnt what it used to be. Is there something for me . There is the demand. It does have side effects. It may have a limited group of patients who it can help. It is for premenopausal women. Women under 50. It needs to be taken every day. Viagra is a drug you can take on the night you may be in the mood. This needs to be taken every day. It is more difficult to take. That will limit the population who this will be good for. Is there a disorder this actually addresses . With viagra, you give it to people who have erectile dysfunction. Is there Something Like that to diagnose women and then figure out what the market is for this kind of medicine . There is definitely hypoactive sexual arousal disorder. There is a disorder. Its very, very different than viagra. Viagra is used to treat erections this men. This is a simple thing to measure and study. Treating low desire in women is much more difficult. Its done with questionnaires. They are validated, but certainly much more subjective. Its a much harder thing to study. How concerned are you about the safety profile of this drug and potential for maybe offlabel use . How much can this be controlled by prescribers . Certainly all drugs can be prescribed off label. There are some concerns of the safety profile. Most of that revolves around sleepiness, fatigue, dizziness and interactions with alcohol. The fda is probably going to recommend wont dont use alcohol while taking this drug. Again, because its taken every day, it means no alcohol either. Thats going to be sort of potentially turn women off of it, as well. How long would women be taking this for . Do you take it for a little while or once you start taking it is that kind of it . I think its supposed to see whether it works in the first two to four weeks. If it doesnt work after a couple of months, it will probably not work. Would this be chronically as long as people need to take it . Yeah. It doesnt work unless you take it every day. As long as women want their low desire treated, they would have to continue to take it. Thats a consideration. I have a serious question. Does male viagra work for females . There are myths about it. There is a sex in the city episode about it. Its a great question, but women generally dont suffer from impotence. Viagra worked by dilating the blood vessel in the penis. It could dilate the blood vessels in the clitoris, but that usually isnt the problem for women when they have complaints about sexual dysfunction. Thank you for clearing that up. Dans not allowed to talk. I feel like im uniquely qualified to chime in this conversation. Email your jokes later. I wanted to hear them. Thank you both so much. Meg, soon as we hear, let us know. Thank you. Mcdonalds allday breakfast strategy has huge fans. What a subject chain. The fast food giant the top choice for people who eat breakfast twice a day. Didnt know that was a thing. Will it translate into a breakfast bottom line boom . Thats next. Robots are coming. Googles robot able to walk by itself on two legs outside of a lab. Is it only a matter of time before they become autonomous . Everyone loves the picture i posted of you. At t reminds you it can wait. What a comeback mcdonalds had lately. Briefly touching a oneyear high earlier today. More good news could be ahead. A recent survey found mcdonnells ranks as top choice for breakfastarians, people who eat Breakfast Foods twice a day. The survey found subway was number two. Ihop was three and burger king and starbucks came in fourth and fifth respectively. Will allday breakfast be enough to help deteriorating sales . I dont eat meat. In contrast with the last discussion where i had plenty to add. You can get pancakes, biscuits. The plain biscuit is my favorite breakfast item. I eat egg whites. What does this have to do with whether this is good for mcdonalds . Very little. My generation, mid 30s to low 40s, when you think of breakfast, you think of mcdonalds. Breakfast is the only day part showing an uptick of traffic. People dont eat serial like they used to. They are eating out and eating breakfast sandwiches. What i would note, there was a lot of competition. Its a very competitive space. Keep an eye on that. Whether the allday mcdonalds breakfast im shocked subway is number two. I dont know anyone who has breakfast there. I did once when there was a snowstorm here at the stock change. Who doesnt want an egg mcmuffin if you are into salty its a big change for some of the franchises. Cnbc had a piece of bad timing because egg prices are shooting through the roof because of bird flu. Where is there a hardees in new york city . There isnt one. At the same time, now that they are doing it, does this create another meal opportunity for them . Does it create a late night demographic that could boost sales as opposed to something that shifts the cost around . Thats the hope. A lot of analysts are optimistic on the move. The other thing is mpd, a data firm on Consumer Behavior put out a survey on the battle for lunch. Some of these fast casual retailers are coming up on the fast food. Battle for lunch is over the burger, not for breakfast. That will be interesting to see what happens to the price of your burger as these categories merge. The pizza category is beating everybody else on the Technology Side of things. When you look at the performance of the stocks, we talk about shake shack and other names. Because delivery . Yes. Part is delivery, but makes it easier to go online. There are tablets at the table. You can punch in things and order. Millennials who dont like to talk to anybody, its much easier to type into a computer. Up next, Million Dollar homes water front challenge. Where these two stunning homes are located. Which is a better bang for your buck . Tomorrow, venture capitalist and owner of the Washington Capitals and wiz yards, ted leonsis is bringing Virtual Reality to his teams. You totalled your brand new car. Nobodys hurt,but there will still be pain. It comes when your Insurance Company says theyll only pay threequarters of what it takes to replace it. What are you supposed to do, drive threequarters of a car . Now if you had Liberty Mutual new car replacement, youd get your whole car back. I guess they dont want you driving around on three wheels. Smart. New car replacement is just one of the features that come standard with a base Liberty Mutual policy. And for drivers with accident forgiveness,rates wont go up due to your first accident. Learn more by calling switch to Liberty Mutual and you can save up to 509. For a free quote today,call Liberty Mutual insurance at see Car Insurance in a whole new light. Liberty mutual insurance. Welcome back. Lets start with another earnings alert for you. Dominic chu whats happening . Chinese internet and online media. Sina, q2 comes in better than expected. 6 cents per share. Analysts were looking at 4 cents per share. Revenues also coming in better than expected, 211 million. Analysts looking for 200 million. As for weibo, q2 earnings better. Nickel per share. Analysts looking for 3 cents. Revenue 108 million. Those shares up sharply. I would point up by about 6 though i would point out for weibo that 6 gain is on 9,000 shares per volume, so relatively thin trade. Still Different Directions here for a couple of the big internet online type names, media names in china, guys. Back over to you, kel. All right, don, thank you very much. Now, cnbcs Million Dollar homes segment is back. To get away from the recent heat wave. Were check on milliondollar waterfront homes. Two houses in the same market face off. Its round 4 now. So were visiting the malibu market where we have beach chic versus california dreaming. Lets take a look. A modern sea escape where the surfs always up. Gaze out at 20 feet of beachfront property from every window. Even this private porthole window in the lowerlevel bath. Stainless steel ralgds lined three stories with 750 square feet of living space. Upstairs a highend kitchen equipped with builtin espresso machine and wine cooler. Wake up oceanside in the junior and master suites. The master bath includes a custommade mother of pearl sink for two. There are two balconies and a lowerlevel patio, the ideal spot for beachfront entertaining. Sleek, serene living for 3,100,000. A threestory sanctuary built along the malibu coast. A serene courtyard leads to 3,669 square feet of living space. Sliding glass doors open onto spacious decks overlooking the pacific coast. Four bedrooms, 4 1 2 baths, and a private office span the second floor. Upstairs a chefs kitchen, a dining area, and an added bonus, unobstructed water views right from the kitchen sink. Soak in the back yards heated pool and jacuzzi or from the stretch of private deeded beach access. California dreaming, all for 3,200,000. Oh, my goodness. With us now is ryan sirhan, star of bravos Million Dollar listing new york. Welcome back, first of all. Thank you. I wonder if we should let all right, lets start with you. Tell you whats going on in malibus real estate market. Its hotter now than its ever been. And i have a team that is in los angeles. So when i told them about these two properties they talked to me for like an hour straight as i was trying to prepare also for Lake Michigan and lake tahoe before and everything. So this is our last one from the day. And this is probably the hardest one because theyre both beautiful and theyre both in malibu and Everyone Wants to be in malibu. Its funny you say that. Before we hear from you which is the best bang for your buck what do you guys think, dan and sara . I think this is the toughest one all day, no question about it. I would love to live in both of them. I think the second ones got to be more bang because you actually it looks like youre in a house in the second one as opposed to like an apartment, right . That was california dreaming. Although youre closer to the beach in the first one. In malibu its all about being near the beach. But i think the second one you are getting more in terms of bedrooms, right . Bigger. I need 5,000, 6,000, 7,000 square feept. So you could buy one and put it on top of the other. Thats what ive been looking for. Douk that in malibu. Im going to go with the first one because youre right on the water. The first one looked better to me, my untrained eye. Ryan, youre the expect. Which ones the best bang for your buck . Weve done this all day long today in terms of which ones the better deal by using the acronym, right . Decor, exposure, amenities, location, and size. So the decor in both, the first one was beautiful like you said. You loved it, its great you want to buy it right away. The second one needs a full gut ren vaigs. The exposure is buhl in both they both face the water. Amenities they both have beach access. Location theyre both in malibu. The first ones a little bit out of the way. Its kind a pain to get to but thats okay. Then automatically you short that one. Doesnt location matter most . Sure, location, location, location. But thats why we look at deals. Theres a bunch of them. Calm down, man. Then we get over to size, right . Which i think is the big one for deciding which one is the best bang for your buck. The first house is beautiful, ready to go. And for 31. 1 youre dealing with a house thats only 1750 square feet. Wow. When you go over to rumble vista 3. 2, so roughly the same price point and youre dealing with 3600 square feet. So for me as somebody whos always thinking into the future the winner is. If youre looking at the most bang for your buck number two. You can buy a house thats brand new, beautiful today and the appreciation is built into wherever the markets going to take you. If people want that house again in the future, what are you going to do, rerenovate it . The second house if you renovate that beautifully built it out to your own standards and price its price per square foot that the first house is currently asking, not even where its selling, where its currently asking, that house is then worth 6 million bucks. You go california dreaming . My winner is the second one, is california dreaming. Wow. Im surprised. I knew that. I knew that. You said the first one. You cant retrade. I dont understand how you work. I think thats two for two. Good work. Thank you for joining us. We really appreciate it. Milliondollar homes. Up next googles game changer. The companys humanoid robot becoming the first one ever to walk independently outside a lab. Should people be cheering or fearing this landmark achievement . Thats right after the short break. S world. Who do you trust . Whose analysis is accurate . How do you make sense of it all . A simple, unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score, powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. More data means more freedom to do. Whatever. Thats why at t is giving you 50 more data. Thats 15 gigs of data for the price of 10. Because the more data you have, the better. And right now at at t get 300 credit for every line you switch when you trade in a smartphone and buy any smartphone on at t next. Welcome back. This is not bigfoot. Its not a bear. Its the newest robot revealed by boston dynamics. Its a subsidiary of google, and its taking its first ever steps outside. The Company Released it out into the woods to examine how it fared walking on its own in nature. Its known as the atlas robot. It stands at 62 and weighs 330 pounds, guys. And whats significant, weve seen some of these robots before. This ones walking on its own two legs. Can i just make a point here for whoever writes the copy, that this does not look like a bear or a bigfoot . It looks like metroid is what it looks like. Whats petroid . Its a video game where if you were a nerd in the 80s and 90s youll know what it is. Although its still around today. But listen, weve talked about this on the show in the past. Clearly this is the first step in what will ultimately be the complete domination of the human race by our robot overlords, and i cant believe that we even do step one let alone what is now clearly step 5 or 7 into the path of what is only going to be our own demise. I think thats actually a scarylooking video. I mean, that freaks me out a little. What if thats coming to rescue you as a stranded hiker, find your child four, put out a forest fire . This looks like a character in a movie. Until the moment the robot goes, wait a second, im the one thats got to go get into the fire . No. This ends only one way. Matt iglesias somewhere who writes for vox and has done a lot of work on the interwebs about this is sitting somewhere rolling his eyes. He agrees with me. This is going to end only one way. Theyre already using robots for all sorts of beneficial purposes. I remember even a few years ago in japan they used robots in the Nuclear Crisis at fukushima. This is a family show. We shouldnt talk about what the japanese do with robots. Ill take the Glass Half Full version on this one. I hope that robot winds up rescuing somebody or going places that he with cant. Thank you guys for joining me. That does it for us on closing bell. Fast money begins in moments, melissa lee. Whats on tap . Ive got a roomba and i love it, kelly. It does a great job with the vacuuming. Exactly. Theres one biotech that was up 72 todays session. Were going to tell you what it is and give you the trade. All right. Straight over to you guys. Thanks, guys. Fast money starts right now. Live from the nasdaq marketsite overlooking new york citys times square im melissa pleep our traders on the decemberric tim seymour, steve grasso, Karen Finerman and pete najarian. Tonight on fast the s p is doing something it has only done once in the last 50 years and it could lead to a pullback in stocks. Well tell you what it is and how to protect yourself. Plus golden times for the golden arches. A new survey is out and its pinpointing what could be the next growth area for mcdonalds. Well tell you whether it could leave the competitors in the dust. But first to our top story. Housing stocks soaring today on another dose of bullish data. The home builder etf hitting an eightyear high with many key suppliers popping as well