Transcripts For CNBC Closing Bell 20160713

Just getting worse by the day. And line. Biggest tech ipo of the year scheduled to trade right here at the New York Stock Exchange tomorrow. We will tell you what to expect. It is going to be the biggest of the year. A frenzy down here. And ghostbusters reboot is out this weekend. The films director who will ring the closing bell today at the Stock Exchange will join us onset. A tremendous amount of buzz on that one particular movie. Its unbelievable. And striking back at times against some of the haters on that one. But we will talk with him in a while about that. Dominik choo, talking about sectors, dom . A lot of people didnt like the stocks. We have another record high on the s p 500 and we are trying to get back and stay in that positiveter tore ary. At these historic levels, it is worth pointing out it hasnt been fun and games for every part of the stock market here. If you look at sectors and stocks left behind, the most recent leg of this massive post financial crisis bull run it may not be all that surprising. Since a record closing high may 21st last year. Three worst sectors in the overall s p financials down by about 6 in that time span. Materials down by about that same amount. And the worst performing sector, no surprise energy with oil prices much lower than a year ago. Down almost 12 from then until now. As for stocks left behind, 10 current s p 500 members have lost at least half of their value between last closing high and now among the most recognizable names, you goot computer memory chip maker like micron which lost half of its value in that time and Chesapeake Energy lost about 7 and biggest lagger is Specialty Pharma Company Endo International which lost almost 80 of value since its last record highs. Those charts not indicative. We showed you just what happened this last year and many of of the stocks still have a long ways to go before they get back it that rare era we are in the overall stock market, guys. Back to you. Thank you very much. We have an unscheduled earnings report. Csx wasnt supposed to report until after the bell. But the results are out . What happened . For the Second Quarter earnings, 47 cents versus estimate of 44 cents. So threecent beat on the bottom line for csx. Revenue for the quarter declining 12 from a year ago. Csx continues to expect 2016 fullyear earnings share to decline and also saying it continues to drive Strong Customer service and Network Efficiency in a challenging mark chet is expected to persist throughout the year. We look at stock of moving here up about 3 in the last hour of trade. Guys, back to you. All right, seema, thank you very much. Now to the closing bell exchange. Where am i . Closing bell opening exchange. I guess. We have peter costa sitting right next to me at post 9 and Rick Santelli joins us from chicago. Mark, i dont know if you follow the rails that closely but youre getting a positive report here from csx. At least for the Second Quarter. Do you like the rails . Do you like the transportation sector right now . Yeah. Weve been relatively neutral on transportation and underline managers but we will take good earnings anywhere we can get it. If this market in the u. S. Is going to continue to move up. And i thought dominiks remarks were right on. We need broad earnings to take the market it a higher level. So just seeing any company beating earnings and having a positive reaction in after hours, well take it at this point. Now, csx, you know, adds up to so far so good. So far so good. And i felt this would be a quarter we would see earnings improvement. And i think that what we will see in the Third Quarter is continued improvement. That has a lot to do with, i mean, it may not seem like the correlation may not be that sim but employment is getting better. You know, wages are rising. There are underlying factors why the economy is still where it is and where it potentially could get better. So earnings will get bet are along with it. Im still positive. Speaking of which, rick, the beige book out last hour, we just continue to bump along here. They alternate between modest and moderate in terms of their description of the growth rate and certainly thats reflected a lot in the yield curve these days, right . Youre spot on, bill. As a matter of fact, it wasnt scientific. But i pulled a few. Pulled from 2011, 2012, 2013. The beige books rhyme and rhyme big time. Whether it is modest growth, certain areas can find skill workers. Listen, we have the most durable 1 1 2 to 2 economy on the planet. There is good and bad news. Bad news, is they arent fimable by Central Banks. And things that are fixable, i think they will address it if we could only get them to address it. I think the latter is optimistic. What is fascinating today, 2s are down 3. 5s, 10s and 30s down roughly 4 basis points. After we opened, we hardly moved at all. You could have painted those prices with permanent market. It was a good auction. I guess what i walk away with is there is still nervousness about the Interest Rate complex on the sovereign side and investors are a bit nervous that negative rates will pull it down. It is not happening. Stock surge took away some of that interest but not many tempted it try to sell it which probably means the next move may be higher yields and lower prices. Stay right there, everybody. U. S. Stocks have been hitting record highs, some emerging markets have had self raleighs themselves. We have more on that one. Seema . With so much uncertainty attached to europe and japan, seen as relatively attractive since the brexit, check this out. Indian stock market up about 5 . China up almost 6 and despite weak export data we got overnight and remember china dtp due tomorrow night. Russia higher by 7 . Brazil fairing the best up almost 10 . With the brexit related concerns and fed dialling down expectations of a rate hike, is the increase pap tight for yield according to experts, and europe and japan moving deeper into negative territory is helping emerging market stocks and bonds move higher. Interestingly enough, if you look at sovereign bonds in indonesia, bonds are yielding more than 7 . Compare that with a german tenyear with a negative yield. Fidelity international has about 272 billion in assets under management. Thats one of the reasons they are seeing such Strong Demand for investments in asian and emerging markets sovereign debt. Thank you very much. Mark, you know, it turns out the brexit selloff turned out to be one of the great bear traps of all time. Name a market that hasnt snapped back in a big way here. But how much longer can this continue, do you think . Yeah, it is interesting you mention that. Japan and emerging markets sold off immediately and they didnt cast one vote. So there is Good Opportunity to make money there. Interesting on the emerging markets report. We have been waiting emerging markets a long time. We like india and russia as well. Areas like the emerging markets, nonu. S. Debt, emerging market debt, there is still opportunities there as well outside of the u. S. But youre right, everything has been moving up. We still think there is more than other places than maybe the u. S. Moving forward from here. Russia, peter . Come on. Its been in the dump for how long . I mean, any of the great emerging markets, at some point, they are going to rally back. There is one thing to point out, if you look at the fix, i dont normally look at technical levels, but if you look at the vix when it is below 14, we are doing well and will hit a new high today. But i think in the next couple of days you will see a fairly significant it starts to top out. Tops out right around here. We will see a little bit of the selloff. And you know im a gambler so i think there is a good time to get short this market. Theres a reason youve been on the floor this long. And lasted this long. For the first time germany issued a negative Interest Rate and you know, were just going to have to this is the new normal here, isnt it . This is what we are living with for a while. Im not sure what how long for a while is but i really do think the clock is ticking and i dont know what will reverse it. But i know that creepy issues of negative rates and how it affects profits and Financial Institutions is a real dangerous game Central Banks are playing. I dont think it Something Like natural gas to get used to or managed markets we have gotten used to. I think something will change the tie on negative rates. It is a dumb idea and i dont think we will or should get used to it. Mark, what about you before we go . Yeah, i would agree, thats why you diversify your portfolio. You need things that will work whether your central scenario plays out or not. As we have seen, there is so much wsh whether negative rates in currencies, so many sharp moves. If you put all your eggs in one basket and get it wrong, you would not recuperate. There are signs such as what rick mentioned to keep your eye on. Thats you why diversify to try to get through it. And is far, balanced portfolios, they look good if you have a broad asset of basket assets. Thank you for joining us today. 49 minutes left in the trading session. Again, any positive close for the dow and s p will be another new alltime high. Wall street is gearing up for the biggest Public Offering of the year. Meanwhile, in tech, details on the line. How analyst are expecting the japanbased messaging app to debut tomorrow. Also coming up, live to london we go for a closer look at britains new Prime Minister and the impact leadership could have on global markets. Youre watching cnbc first in business worldwide. Generally higher markets, though now we see the s p lose ground. Dow is up 15 in record territory. S p down a quarter point. Nasdaq down 11. Tesla is trading down lower, under 1 . The auto maker introducing a less expensive version of its model x Sport Utility vehicle to the roster called the 60d. Listing at 74,000. Thats 9,000 less than the 75d which goes for 83,000. As he looks to turn a page from the crisis headlines theyve been dealing with lately. Yeah. Now britains new Prime Minister teresa may becomes the Prime Minister today. Second woman after margaret thatcher. Seems shes already made a couple of appointments, wilfred. Of course the headline is that the bounce back kid Boris Johnson has got a significant role just two weeks ago his career in dire straits and yet he just secured one of the major roles of state here in the uk. Foreign secretary when not even a significant role at all was expected for him. Extraordinary stuff once again here in british politics. Now of course he is a colorful character as we know and already the u. S. State department made a mention of him saying they are looking forward to working with him. Now the other big role of course is that of chance chancellor, g phillip hammond. He was touted to get the role and he has got it. The outgoing chancellor George Osbourne had been expected to secure a significant role but no role at all for him. So a big surprise is Boris Johnson as foreign secretary, perhaps boldest move by the new Prime Minister is no role at all for George Osbourne. That will please the back benchers and brexit eers. The other thing that will please the brexiteers, is two former positions, they will together head up brexit negotiations, exact titles of those roles not quite confirmed yet but they will be in those positions. The other little surprise is that we are expecting a lot of women in this cap net. But so far only one role, thats for amber rut as home secretary. We watch developments as ministers come and good behind me at downing street. And wasting no time at all it appoint the positions, big headline Boris Johnson as foreign secretary. Im not going to ask you about larry the cat, wil. I assume would you have brought it up if there was any news this morning. What about Boris Johnson, can we expect, if he is foreign secretary, to see much more of it with regard to negotiations . Well, i dont know if you said u. S. Or europe negotiations there, but there is a role specifically for eu negotiati s negotiations. While one would assume foreign secretary would cut off relations with europe that maybe he will be kept slightly apart or at least will be headlining it. Boris will cover all of the other countries and relations as foreign secretary in the u. S. State department as we have said. He is a colorful charismatic figure. I think at times the level of his politics is exaggerated because of that color fullness. And his politics are relatively mainstream. Quite similar with outgoing Prime Minister david cameron. This states the obvious, but could you have written this script any better where you have an antibrexit politician who end up running the government to begin the negotiations to take the uk out of the eu . It is unbelievable, the turn of event in all this, right . Completely unbelievable p. I could not agree more. Anybody could have written any stage of this script. So many ups and downs over the last three weeks from the result of the vote in the first place about crazy leadership battle ups and downs and now to the appointments of who is in the cabinet. But teresa may has been true to one thing. Balance between brexit eers and going to Boris Johnson and chancellor and seems like when is balancing it quite evenly. But certainly, one wouldnt think the story end here because british politics, weve learned to expect the unexpected. That is just crazy. Will, thank you. See you later, cheers. About 40 minutes to go here. Dow is up with a gain of about 15 point. Right now the s p turned lower. Transports are one of the best performers. We mentioned csx with earnings already out. That is helping that sector which is up 6 5 point. Nasdaq is down 12. When we come back, stealth military takeover underway in venezuela and if it can breath new life into the struggling economy there. And young brands expected to post earnings after the bell. Owns kfc, pizza hut, taco bell. We will bring you their numbers as soon as they hit the take. Coming up. Welcome back. Checking on crude this hour. This morning we knew there was some downward pressure after the data yesterday afternoon, down about 1 . Now down more than 4 for both wti and crude. Wti is below 45 there and brent just above 46. Something to keep an eye on. We are looking at the pressure into the close. 45 something of a pivot now for wti at this point. A stealth military takeover may be underway in venezuela. Michelle carusocabrera has more. Michelle . In the number two position in the government, by the countrys current leader, the move raising questions about whether or not the military slowly but surely trying to take over control of the south american country. Defense minister general Vladimir Lopez has been elevated to above the mostly civilian cabinet. According to a new decree the military will be in charge of the distribution of food and medicine and as of last night theyve taken over all the port in the country. Reuters reports he went on television yesterday and said he did not like having the military intervene in nonmilitary affairs but that there is a need for discipline and order. His words as a result of the chaos driven by shortages. The economic kiss os forcing out International Companies day after day this week and last we heard from citibank and Kimberly Clark and pepsi cosaying they are simply getting out and i spoke with political analyst from ihs and we discuss the possibility about whether or not there may be some kind of stealth coup going on. That is a question tossed around in venezuela. He thinks that word is too strong. Yes, this is the elevation of military rule over civilian rule. Venezuelan government was already in many ways highly militarized and he thinks at this point he is just trying to harbor logistical capacity because it is so desperately needed to distribute resources. What happens when that doesnt work, michelle, inevitably . Good point, kelly, right . He thinks he is a lack of Logistical Support when it is mostly price con trels and not letting price clear the market. If it cost you 1,000 to import a refrigerator but the government can tell you you can only sell it for 500, guess what . You dont bother, right . And write that across every sector of the economy and that explains why you see a thousand people in line for chickens and things like that. You itemize the companies that have either gotten out all together or reduce exposure, do we know of other companies who may still do the same thing . What weve seen with a lot of major s p 500s is they write it off quarter by quarter. They take a couple cents at a time. So they dont necessarily do it overnight and they are trying to get foreign currency out and slowly but surely if they are able to do that they do. So it is hard to know. But anything with any kind of consumer exposure, if youre a Big International company that sells to consumers all over the world, you probably had issues in venezuela. Speaking of moving cents at a time, what about the price of the oil . He is geared toward the sustainability of any kind of economy down there . Right. So when the price of oil moved from 25 to 45, there were big improvement in venezuela bonds, right . Remember wall street has exposure to the oil company and to the government through the bonds. And a lot of folks that they are still bullish on the bonds. When the price of oil goes up, however we just got data today that shows a more dramatic decline in production. All of the shortage when it comes to food and toilet paper et cetera, that happens with oil, et cetera. Tragic. It really, really is. Almost dont want to see how this ends. Michelle, thank you for now. Michelle cre. The federal government recorded a small budge net june. This is still nearly 27 higher than a year ago. The first nine months the deficit totals 401 billion. Marylands six flags Amusement Park is closed today because of a bomb threat. Fire Officials Say the park received a threat shortly after about 10 00 a. M. About an explosive device in the park. Authorities currently searching the park for anything suspicious. A federal Appeals Court has rejected tom bradys attempt to get a new hearing on his defl e deflategate suspension. Brady was asking the full court of appeals to hear the case. Back in april a threejudge panel affirmed his fourgame suspension. Saying Roger Goodell was within his jurisdiction to make the decision. Families, friends and colleagues, remembering him as a loving family man. Thats the cnbc news update at this hour. Back to you bill and kelly. Sharon, thank you. Sure. Very much. Heading to the last half hour of trading. Here, the dow still positive. That would put us in still record territory. S p though has fallen back just a bit. Leading trader will tell us what he, if he sees new cheesing eyes again today, thats coming up next here. Also coming up, director of the new ghostbusters movie. He will discuss the potential for his new film. Tremendous buzz. Not all of it great, either, by wait. And yesterday our scott comb revealed that utah ranked first in the survey of top states for business each year and now im sorry, is that donnie no, that is scott there. Careful. How close are they . The best state of business over the past ten years. You see horns . Watch behind this guy. This is a lot easier with donny osmond. What could possibly go wrong . Where could i possibly be . The state thats done the best over the last ten years. We will reveal that state. The top of the tops coming up on the closing bell. Watson, lets review theelectrod of the nexpatient. 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All plans like these let u visit any doctor or hoital that , with no networks and virtually no referrals needed. So, call now, request your free guide, and exple the range of aarMedicare Supplement plans. Sixtyfive mayet all e tention, but now is good time to start thinking about how you want things to be. Go long™. Watching markets here. Dow creeping higher to a fresh record high today. As it closes. Just frags fractionally lower. Csx is popping nearly 5 after beating earnings and revenue. I believe the same for alcoa earlier. The reason we know this already is reporting after the bell but csx put out its release early with the statement from the company saying there is an incorrect tweet around 2 00 p. M. Today. Removed immediately but the moment we learned of it felt it was important to give investors the correct information as quickly as possible. And investors responding well to that disclosure. We will speak with the ceo after the bell. We have a news alert on donald trump to get to now. What is happening . Among the unusual things about Donald Trumps president ial campaign this year is the fact that he filed a 10 million lawsuit against one of his former Campaign Aides alleging improper disclosure of internal secrets. Donald trump requires aides to sign nondisclosure agreements. In this 10 million lawsuit he is claiming former aide sam noneburg violated that agreement. It grows within a civil war of the campaign with nunburg who worked with the campaign and Corey Lewandowski the campaign manager, they had a falling out. Sam nunnburg left the campaign. Since then Corey Lewandowski left the campaign. But it came to light today as sam nunnburg was making a filing trying to keep the lawsuit from being filed to private arbitration and a few moments ago gave a statement to our colleague at nbc katy tur saying im not guilty. Im beautiful. That is sam nunnburgs response to what donald trump says is unauthorized disclosure of secrets. Not the thing usually president ial nominees spend time on in the middle after campaign. Thank you. What do you think, bill . A campaign of new ones. For thank with you be kelly. Im just moving right on here as we have 27 minutes left in the trading session. Ive got allen valdez from silver bear capital with me on the floor of the Stock Exchange. Would you think it would be time to take some profits. But is it with us in an alltime high territory here . Youre right. We put back, what, over 1200 points. You would think guys would take a little off the table. We will see what banks do tomorrow and friday before they do something with the weekend coming up. Right now take a breather day. No one is really doing anything and volume reflects that. I know it is two companies but alcoa and csx, two meat and Potato Companies meeting on the top and bottom line. But alcoa, 10 stock for ten years so neither one moved a mark that much. Really about tomorrow and friday. Jpmorgan tomorrow morning. And all the financials. But how can we expect descent numbers in the environment were working on right now . I dont think there can be great numbers in this quarter but you see guidance and remember car loans are up and maybe they will eek out a good year at the end of december. So we will have to wait and see. It is all about the guidance. Are you hanging in here . Yes. Very good. Thanks, bill. Kelly . Hold the line. Thats what investors want to do with the ipo of the messaging app. At cnbc global Head Quarters with more. Hi, kelly. Koreanowned japanese based market share in thailand, taiwan and indonesia. Messaging app created in 2011 in response to the japanese earthquake with downed telephone poles and jammed lines and hard to connect to the loved ones that people are looking for. So creating tech giant neighbor and why not use the internet instead and tay line has 218 million active monthly users. Two thirds of which come from the four countries. How did line catch on . They revolutionized chat emojis as we know them today. Introducing cute cartoon stickers back then that users can buy then insert into messages. But the app itself really evolved from the cartoon stickers to content. Now driving a line to through revenue content like games, television, music, movies, make up over 40 of lines revenues including streaming partnership with disney. Still making up a quarter of the companys revenue and line gets advertising revenue when they charge businesses and artists who are selling their movies albums and products. They send out blast promotional messages across the channel. Seeing user growth slow down and stall in recent months so that is probably why they are hitting markets, recognizing they need to go global. Where as cash in order to do that to gain market share outside of the four dominant countries. Still though indications are it is a pretty strong debut with nikkei reporting that subscription over 25 times the shares on offer. Kelly, back to you. It trades in tokyo and at the New York Stock Exchange. So does it start tonight in tokyo . We will have a price assigned by the time it trades here. Is that the idea . Yeah. Thats the idea. Tokyo rules dominate in this dual listing and that also helps with the momentum when it is over here to new york and we kick off the new york session. All right. Well see what happens tomorrow. Susan lee, thank you. See you later. Weve got about 13 minutes left to good. Dow is edging higher. Up 26 points. S p back in positive territory. Vacillating between gains and losses this hour. Nasdaq still down by about 10 points. Still ahead, ride the rails into earnings season with Michael Moore of the ceo of csx whose results did go out early after an incorrect tweet is sent out about 40 minutes ago. Meantime, one of the most talked about and tweeted about movies of the summer. The ghostbusters reboot will be released in two days. When we come back, we will talk to the films director about the anticipation and the aggravation that ghostbusters has generated, coming up. Something strain njt neighborhood your insurance compa wont replace the full value of yr totaled new car. Thguy says you picked e wrong insurae pl. No, i picked the wrong insurance company. With Liberty Mutual new car replacement™, you wont have to worry about replacing your car beuse youll get the full lue back including priation. You qualiffor a multipolicy discount, saving youoney on your car and home coverage. Call for a free quote today. Liberty mutual insurance. Is selling 5 million shares in options totaling the 8. 6 million. Maintaining a significant position in the company. Down 6. 5 right now. And short seller andrew left is reportedly taking a new short position in that stock. So were not done yet. Left telling streets real money quote i think its obvious its a zero now. Trading around 21 as we head into the close. Ghostbusters hits theaters friday. This time with a female cast. Joining us right now is the director of the movie, the gi who cant wait for this thing to come out. You will ring the closing bell today. Yes. Director paul fine. Im guessing youve never been involved in a project with this much buzz. No. This is a new thing. If i ran up and closed the Stock Exchange right now would that help anybody out . No, you would probably be thrown off the balcony. Okay. I wont. This is great, when you make a movie, generally, the biggest hurdle is trying to get people interested and know that it exist. This is one that everyone knows exists and they have strong opinions. The 21st century and people add problem with an allfemale ghostbusters cast. Explain that to me. You know, look, there was two waves. People who had issues with women taking over the roles and to them, i say, get a therapist. Go work that out. But there are people who are just very passionate about this movie and people get very nervous about remakes and reboots because youre touching a classic. But for me, just like, here is this amazing idea such a great showcase for all these funniest people at the time back then, why should we not have this new vehicle allow the funniest people working today to showcase themselves . Do you try to figure out the box office . Do you have that in mind . Do you follow it so that fact that we are down, call it roughly 10 on the year, last quarter, for the u. S. Box office, what does that say to you . What do you think is going on in the movie business . Every movie is kind of unto itself. And all i can say is that audiences want quality. And they want to be surprised by things. Sometimes that means you bring them something they know and give it a new taken a sometimes it is everything being completely new. For us as filmmakers and creators, all we can do is bring you the thing that we have the most Creative Energy for. Everything ive done before was an original idea. This is the first time ive done someone elses old idea. He was involved in this anyway. Dan aykroyd is one of our executive producers. Everyone is involved. Social media is a blessing and curse. As you well know now. Yes, i do. It speeds up the word of mouth process. Will smith recently said, it can, as you know, the word of mouth begins the moment the picture comes out because people can tweet right aby what they think of the picture. Good thing about that is it becomes a total meratchracy. It takes two weeks to say, well that movie was terrible. At the same time with the internet, so much stuff comes out in the runup to things, that everybody thinks they know whats coming and almost too much information. Im 53 years old. I saw maybe one trailer and had no idea what i would see. It was a true experience. Though youve add great career and we like to ask people who come through here, especially the successful ones about the biggest mistake theyve made over the years. What would you say yours is . I invested once in some houses being built in hawaii that was brought to me like, this is a surefire investment. These big mansions in hawaii. Who would buy that . Well, no one bought that. Im still waiting for that. Why would that not be great. Did it take the fun out of making this picture, all of the angst . No. It was surprising this there was that much vitriol. But myself and all the funny people i work with, we have a great time. Thats how i made the smallest films and the gigantic jill manies. The audience has fun. You say, okay, when people see it, they will know what we were trying to do. What is next, a traditional box Office Release or on the streaming plas forms . First thing up for me is a long vacation. I love all the new mediums that we have and i did a series for yahoo last year called other space an original show that we straemd. Streamed. As a creator, you just want outlets for your material to come out. I want to play with movies. I love move ice. They are my passion. When spiderman rang the closing bell, he leaped from the balcony to the Trading Floor here. Watch yourselves. I think can i make it. Somehow i think you can too after all youve been through. Director paul feig, ghostbusters. That opens this friday, july 15th. Cant wait to see it. Thank you. About 15 minutes left in the session here. Keeping an eye on stocks which are edging towards new highs. Nasdaq has been lowered about a quarter percent. Our next guest says the u. S. Has the best opportunities to invest in the markets right now. Giving us specific picks right after the break, stay tuned. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. With the dow up 26 points, s p up. 75. Any positive close for those two means an alltime high again for major averages. Joining me on the floor of the New York Stock Exchange, pepper international. We hit alltime highs but you still think the u. S. Is the best place to invest . Absolutely. I think the brexit showed us this is the safest place to invest in the world. And it is also the best risk adjusted growth place to invest in the world. Im getting tons of calls from foreign wealthy families asking when can they bring their money here. What is the best way to invest in the United States . Where do you put it then right now . I think you want to have a balance. We will continue to have some dipping days. Down days. You want a balance between income and growth. On the income side, i certainly love preferred stocks as a way it start looking for some income. Etf is one you can look at. On the real estate side, like the read stag is another great stock to look at. I think about these reports that just came out from bank of america, merrill lynch, and ubs of the incredibly high cash levels that their clients have right now. Over nervousness. Some feel it is too expensive. Dent want to live through another 2008 when they lost that money. Others worry about the election coming up in november. And this whole wall of worry right now, does that give you comfort as an investor who wants to still invest in this market . Yeah. I think theres a wall of worry since 2008 and it is about time we got over it a little bit. U. S. Is the strongest market in the world. This is the place to be. You have to be longterm investor if you really want to make money. By the same token though, so many people are investing for yield rather than for growth. Yes. It is a very defensive rally that weve seen the last several months here. Thats right. Weve been afraid theres such a risk on environment but with theresa may taking over in the United Kingdom with the world settling down a bit, with it looking more likely that hillary will win the election here and people are getting more comfortable. That we will be able to make our way through these transitions and therefore have a strong second half to the year. And todays beige book is the same thing. Our Rick Santelli pointing out, he looked at a few examples over the past few years and they tell us the same story theyve told us for a long time. This is the new normal we need to get used to. Right. And that doesnt mean it is a bad thing. You can make money in the market if you have to be patient. Buy on the dips. As brexit days, drops, and get into the great names like amazon, facebook, google and things like that. What do you avoid right now . I think you have to be careful about japan right now. Although everyone is happy with the Election Results im afraid that can be another head thing. And youre yol will be disappointing. It will take a lot longer to work out brexit than people think. We could have a pull back in europe as people realize there is a lot of wrangle in there. Two sectors in the u. S. That lag the rally. Financials for obvious reasons and energy. Would you look at either one of those here . Financials are still toxic to me. I dont see any way out of the box. High regulation. Squeezed margins. I just dont buy will financial stories. Oil, yes, eventually oil could be interesting. But a very small percentage because we could have another dip down again. We still have a large amount of stockpiling. So again you have to be patient. Dw to see you. Good to see you. Carol pepper of pepper international. Dow up 26 points. We get the closing countdown coming your way in a moment. And kelly will come back as we get the earnings from young brands at the top of the hour. Stay tuned. Welcome back. 3 1 2 minutes left in the trading session. So here for the closing countdown, lets review again, this week so far for the dow and s p. Threeday chart first of the s p recalled we had an alltime high close on monday. We had one yesterday. And it looks like we will have one again today, bob. And we will be up, you know, close to 3 in the last four days. A flat day today but close to 3 . 1 for the week so far after the big rally on friday. The dow, we didnt have a record high on monday. But we did yesterday. And it looks like we will have one today and that is done even better up 1. 25 for the week so far. And today we have an auction of 30year bonds. They went better than the threeyear note auction and tenyear note auction. And the Pension Funds that really invest for the longterm looking for that yield and 2. 17 looks attractive. It has been a volatile week. Look that. But when all is said and done, down just a quarter percent with this almost 4 decline today. A draw down today but not as much as expected. And gasoline not good at all. Too much gasoline. But great news for drivers. Yes, it is. Earnings, csx out already came out prematurely on twitter so the company just went ahead and released earnings and that stock is up 4 plus percent right now. Young brands coming out imminently and big one tomorrow morning jpmorgan coming out with its earnings. Still cutting numbers pep p app Drexel Hamilton cut them today. You would think like how much more can you cut on some are still arguing longer or lower story. This is controversial. And some are making arguments. And what i want to hear about is what does jamie diamond have to say about the whole brexit thing . Im hoping we do not hear every major multinational somehow cite brexit as how they want to be caution on the second half of the year. This is what makes it much more difficult for positive earnings. We have been talking about five consecutive quarters of earnings. Hopefully end and maybe the third if not the fourth quarter. This is the kind of thing the endless brexit is our excuse, brexit ate my homework excuse, that were all kind of dreading hearing about. But still very, very early. You just add brand new Prime Minister today who is appointing her cabinet. And as wil frost is pointing out, she balanced it well between the bre mainers and brexiteers on the cabinet and the brexit czar is appointed as well to begin negotiations. Very encouraging the markets reviewed swift appointment and that she is there positively. See the markets turn around on that so it is certainly a good sign. And i want to hear jamie dimon saying overall, u. S. Economy is better and brexit may have a small marginal impact. Thanks, bob. Looks like we have dow and s p and stay tuned earnings from young and ceo of csx coming your way as well as our new friend paul feig, director of ghostbusters here on the New York Stock Exchange. Here is hour two with kelly evans and company. Kel . Thank you, bill. Welcome to the closing bell, everybody. Im kelly evans. And yes, the dow closing at an alltime high today on wall street. Adding about 23 point. Good enough for a new close write it down 18,371. 02. Thats the high water mark. Things will shift a little as it fully settles out. Looks like s p managed to do on the bell too. Although it is very close to a tenth of a point higher. 2152 and change is the low for the broad index there. Nasdaq gave up 17 point. Slightly in the red for the year. 5,007 is the line to watch there. Closing at about 5,005, down about a third of a percent today. Transports did well. Oil got whacked. Also coming up within csx ceo michael ward joins us to break down the companys better tan expected earnings. Thats later this hour. Joining me on the panel, mike san tole. Along with elan moy. And everybody is in blue today. Oh breaking the trend. And guy who gracefully joined us yesterday. Good to have you back with us tp mike, a huge point in terms as we continue to climb higher. Yeah. This is one of the days when flat is kind of a win. Just because the market is so extended, 7. 5 in ten days an also oil pulling back the way it did, you know, thats dealing a little bit from equities but oil really only hurt Energy Stocks today. Remains to be seen if that continues for a while. I do think it probably was kind of a net win as you just consolidate and catch a breath after this big sprint. I think csx having a positive reaction and all this stuff feeds into this idea and maybe things are stabilizing. I want to hit you that for a second too. Alcoa comes out. I think the top and bottom line beat and now the same thing albeit slightly but does it give you encouragement . Two for two, right . A great sign. Absolutely. Without question. I saw in the beige book, talking about softening Consumer Spending and we will see what the numbers come out with and not to get on one of the guest you had 8 minutes ago but this is every indication you need to know. This is what permeates this market. I think her comment was in terms of the market, you wait for another brexit type of event and then you get in. And this is not to cast any aspergss whatsoever but weve been conditioned now for six years, correctly, i might add. Every tip is an opportunity regardless of the story. And my fear is there will be a story at some point that transcends all this and we will all be in the same situation we found ourselves in a decade or so ago. I dont want to get on my soap box but i thought that was an interesting comment and something i had to comment back on. And it is an important point. You know, the last thing that you want is to see people encouraging everybody to get into the stock market at record highs. God forbid they dont continue to grind higher. But the flip side is that most people arent in the stock market. Cash balances are at highs. Institutional money flowing into bonds. Even as prices there, by wait, continue to go to record levels. It is kind of like, you know, damned if you do, damned if you dont, pardon the french. True. And this market can continue to grind higher. Mikes been talking about this for quite sometime. Really measured and spot on in terms of his aseassertions. I tried it take it on unsuccessfully. People think they want to hear the truth but in reality they want to hear things that reinforce their dogma and for 99 of the people, that dogma is the percentage needs to go higher so people can make money . Really . I feel like it is the total opposite. What do you mean by that. Most people are positioned for the market to go higher. Dooms day right around the corner, having experienced one. I dont think people position for dooms day. I think people fear that. But i think theyve been conditioned now successfully over the last seven or eight years that the stock market is the absolute place you need to be. And thats been proven true, by wait. Im not saying its not been true. But my fear is and it manifests itself to sp, whatever it is now, complacency and the mentality that its worked for so long, you wonder if people have been lulled into a false sense of security. Given everything we have talked about what can be the false sense of securitsecurity . If dooms day does comes, and the Central Banks, that is behind the rally we are seeing. What im concerned about is if you believe the central bank is behind, you know, this massive rebound that weve had, Central Banks worldwide are behind the massive rebound we have seen since brexit is what happens if the rate hike does come . One of the lesson sets volatility we have seen in the past few weeks is that even very small changes with the outlook and Economic Outlook and fed rate hikes and what the boe and ecb might be able to do, that creates massive changes and where people think the market will go. Steve liesman will join us with a recap, steve. There is more on tap still. But you know, is there a clear message that is coming out here . Yeah. Take the summer off. And an economy growing modestly. Inflation under control. Nothing in the economic from the feds, 12 districts suggesting any imminent need. And we have to talk about that in a minute. Here is what the beige book said. Employment growth is modest. Consumer spending generally positive. But as was pointed out there are some sides are softening there. Price pressure slight, slight i say, thats a big word there, over at jeffries, saying the public speech in recent weeks preaching in Global Financial markets and beige book is consistent with that approach. We are hay way through a week of 14 speeches so far the impression is the central bank doesnt appear to be in any hurry to hike rates or push back against the market view that rate debate is on hold for at left a couple months. Here is some stuff said. Robert cap lin says the fed will remain accommodative as long as dual mandates are met. The fed could be patient in letting the economy heal. Lets go to the base point and stay there. Even hawks arent so hawkish p. Who resta mesher says let the rates go up over time and rhett ak of the bond market. Look that for the fed just a touch to the hawky side. Up eight basis points on the week. So far about eight four basis points for the year. But there is little chance if any of an imminent rise. Yeah, i really feel and we had talked about this before brexit happened that had that event not occurred, that july was really on the table. If you look at the discount rates that came out yesterday you saw the four feds up from two asking for increase in discount rate before after the main unemployment reports and reaching out before brexit and the brexit vote occurred i think itll take a long time for them to assess what the implications of brexit are. Especially if you consider that you will see likely easing from the bank of england and you will likely see easing from ecb and do we want to be in a position where you have divergence once again. And it is a long time before this can play out. And it is interesting. And i agree with you that in july or leading up to july, the fed was trying to maneuver into position to have something to do or at least get the markets expectations in that direction. Now with the feds so far as steve describes it, they are electing not to try to drag the markets attention back in that direction. They say despite fridays jobs number they go to strike this tone of we dont have to do anything. Im wondering if stocks go up another 5 , if markets are truly stable and markets remain flush, do they still want to let the markets run that much longer . If we get another very strong jobs report. Thats the thing i wonder if the market has it Pay Attention to and definitely not right now and not next week. I think this would happen the the beginning of the year, right . Feds did not push back and the feds price hike again and that Financial Condition evening, that easing of Financial Conditions, is part of what helps the economy weather the volatility that we saw. So maybe they are hoping for the same type of effect again. What were you going to say, steve . You know, no mikes point that when the fed want the markets attention, it knows how to get it. They have my number and they know how to speak in ways that we Pay Attention to them and mike makes the right point as does elan that they dont want our attention now. They arent pushing back against the general market view and my view on that is, they dont start to think about a rate hike again until they get data. They want to see how bad things are in england right now and maybe knock on effect to the eu and see things clear. I think september is a time when they start to talk about it and right now theyre comfortable with it. I think mike makes an interesting point. I dont think it quite what anna makes the Decision Making process, i dont think another 5 on the stock mark set what will get them going here, mike. I think they have to look at the dwrat. If the jobs market comes back strong. If gdp, say Third Quarter looks like another 2. 5 or 3 and you get movement and waves and inexplanatii inflation. Im not sure that stock mark set what is animating them right now. I didnt mean to say that would be enough. I think another couple of strong job reports or the prerequisite for the fed deciding they want it redirect the markets attention. I agree. You want to give us a parting thought here . Again we talked a lot about the stock market being in alltime highs but we have to talk about bond prices too. A great 30year treasury auction that probably offset lousy auctions we saw earlier in the week. So again there is still something going on. Steve is an economist. Way better read and more well versed in terms of this stuff. But something seems amiss to me when you still have german tenyear rates negative. Guy . Yes. I know what youre saying. By the way, i have more respect for you than you let on there, your point of view has been spot on. Let me make a point, in a world where Interest Rates are negative in europe and japan and we think the boe might cut again tomorrow, im not sure the tenyear sends the same economic signal it otherwise would send. Im with you. My concern is you have this flattening yield curve here in the United States that appears to continue to flatten. Last time we saw it was december 07ish. Historically that doesnt go over well for a strong economy. Maybe the game changed. I dont know. Elan was saying you know we got to be on the edge of our seats. For the possibility that they are going to change and all of a sudden the twoyear, short end cant go that far. Its got to stick around and wait for the possibility that some fed guy will open his mouth. Last word is, i got to tell you something. Ill say it again. Art cashin went out of his way to say hi to me yesterday. That meant a lot. I should have found him and instead he found me. He is a gentleman. Absolutely. I think you wiggled out of your answer on that one. I didnt wiggle out of everything. I will stay the whole hour. But i know i got go, you got to go. Guy will never wash that hand. Exactly np more with guy next hour in fast money. European strategist said a death spiral was coming. Now he is joining the bulls and he will explain what is changing his tune. Now republican president ial nominee donald trump could name his running mate by the weekend. There could be rules that prevent him from taking the nomination. We will hear more from the Trump Movement coming up. Now, pokemon go may be the next frontier in advertising. We will tell you how when we come back. Cnbc first in business worldwide. As a supervisor at pg e, its my job to protect public safety, keeping the power lines clear, while also protecting the environment. The Natural World is a beautiful thing, the work that we do helps us protect it. Public education is definitely a big part of our job, to teach our customers about the best type of trees to plant around the power lines. We want to keep the power on for our customers. We want to keep our community safe. This is our community, this is where we live. We need to make sure that we have a beautiful place for our children to live. Together, were building a better california. Welcome back. Dow adding about 25 points today. Enough for a record high on the index. 18,372 is the new high water mark. S p with a gain of not even a point. Still will be iebl to notch the same achievement. 2152 there, the nasdaq down 17 point. And just barely back in the red for the year. Pokemon mania is onity way. There is a new way for people to cash in on the game. Julia has more on the advertising game, julia . Pokemon is the biggest mobile game in u. S. History with 21 million daily active users in the u. S. According to survey monkey. Players on ios devices alone are spending about 1. 6 million daily for in App Purchases of virtual goods and powerups and soon another revenue stream. Apple launch sponsored locations. Ceo of developer told the ft. Now this is building on the fact that players can chase animated characters to pokemon gyms and poke stops. They will share revenue from this as well as other Revenue Streams along with google and apple who of course take a 30 cut from their stores. Now a business could say pay for place many in the game with tieins between the virtual and real world like the opportunity to win say virtual berries at grocery store. Some businesses are already promoting the presence of pokemon characters to lure customers. The owner of a Long Island City pizza restaurant said he spent 110 to create virtual lures in his restaurant as a tiein to the game. Bringing a rush of players which he says boosted his business by 75 . We will have to see how long this fad lasts but for now the game is so popular survey monkey says pokemon goes daily actist users on track to surpass snap chat on android in the next few days. Crazy. Well come right back to this in a moment, julia. But young earnings are out. We will get to this with susan lee. Yes, we have a beats by one penny. We were looking for 3. 09 billion. They put in 3. 01 billion. And since sales is pretty much the key to yum. When it comes to kfc, thats important. Looks like we have it was pretty much in line for quarter and they have just noted that looks like the China Business has gotten off to a good start in q3. But in q2, doubledigit declines. So Going Forward it is tougher. Back to you. Thank you, susan. Again, yum shares up less than 2 here. You know, this now being the main one we are waiting for since csx reported earlier, yum and maybe how the consumer is doing. And i think the encouraging words of how china looks and probably encouraging, getting after hours and by the way, yum among its group has been a lagger. Obviously mcdonalds is the start. Even wendys has done better. I think a little bit of the ketchup move. Not cheap. Just dividend factories. Julie, how long before pizza hut is advertising on pokemon go . It could be very, very soon. There is already a Company Called blipper that was on our list. That is an augmented Reality Company focused on reality. If you play pokemon go, you see how easily how a company like pizza hut or your local deli could advertise, come in here, we have you know these pokemon characters here. So it is sort of naturally lends itself to layering, advertising and brands and stores on to that map. And on to the world that you see when youre looking through your phone as you play the game. So i get, they can use the lures, stores can, and pay for people to figure out, oh, if i go into this pizza joint or whatever it is, i tend it find more of these characters here. Im guessing you know this well by now . Yes, i have downloaded the pokemon go app and i have caught pokemon, including spiro, not far from nyc. This reminds me a lot of the geo location of four square. I was mayor of my local park. You get fatigued by doing that constantly. So i wonder how long, one, the fad will last, but would, what is really the opportunity for retailers to try to take advantage of that marketing capability. Good point. I guess it pays to strike quickly. Capture that excitement while it is still hot. Yes. We have seen various other fads like this. Candy crush is one that comes to mind. Angry birds. So you never know how long the game fads will last. This is bigger than any one in past. I think part of the fascination is the fact it is about getting you out of your seat. Out of your house to walk around. So a very different kind of mobile gaming experience. So not just about what is on the phone but what you see through it. Who knows how long this will last. But for now, people seem to be obsessed. Thank you. We were laughing down here because the stories of the floor guys who have been careful in the neighborhood driving around because kids are jumping out in the middle of street chasing be careful what you wish for if you want them out of the house. It strikes me as a groupon type bargain. We can just get these people in relatively inexpensively. Very interesting what julia said, overtaking snap chat and vines. Stunning and amazing in a way this can take over so many peoples phones and attention so quickly. Because you have to leave it open. Who is it drawing from . No one is making more eye ball hours. A guest yesterday was joking about stealing from amazons prime. But i didnt know you had to leave it open. It has to be open to get the pokemon radius. You cant leave it and good to another app. Thats why it has eye balls engagement. We will see if you are still using to the next time. Ill have a hundred pokemon by then. Using all that innocence we are learning about. Donald trump walks from the next convention as the president ial nominee. Our next guest is trying to keep that from happening. Leading the charge to dump trump and who she thinks can replace him at the top of the ticket. How the collapse of Coal Companies is affecting the bottom line. Approaching medicare igibility . Medicare optionsntil yreff sixtyfive,t your but now is a good time to get the ball rolling. Keep in mind, ofart b dical costs. About eighty percent e rest is up to you. s where aarp Medicare Supplement Insurance Plans like all standardized Medicare Supplement Insurance Plans, theyould help pay some of whaticare doesnt, saving youn outofpocket medil costs. 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Republican president ial nominee donald trump expected to make his running mate pick by the weekend. In cleveland is where we find eamon javers. Eamon . Yes, it is still anybodys guess who donald trump will pick for Vice President ial nominee. Last night appearing in indiana with mike pence, donald trump said he could be your governor next year or Vice President of the United States, who the hell knows. That as donald trump says is where were at right now. We saw trump visit mike pences family residents. Members of the trump family were there as well. We dont know if trump was there to give them the good news or bad news. Also on the short list, Newt Gingrich former speaker of the house and a wild card the media isnt even speculating about. All of that happening as polls are tightening. Let me bring you up to speed on the latest wall street journal marist poll. You see numbers. Hillary clinton add lead in each of these states or better margins in each of these states until recently. In iowa Hillary Clinton at 42 . Trump, 39. In pennsylvania, 45 , clinton. 36 , trump. Here in the state of ohio, which as you know is always a linchpin in president ial campaigns, 39 to 39 , a dead heat now according to nbc news wall street journal marist poll. Kelly, it is really tightening up. This Vice President ial pick could be one of the things as we go into the fall. Is this perceived damage from Hillary Clintons emails . That is a swing factor or i should say it moved in a pretty big way. It has moved and moved fairly significantly to the down side for hillary. This was conducted in the wake of doeky talking about the email scandal for Hillary Clinton. Weve seen other polls on trust worthiness and honestly deteriorate in the wake of that and that is causing this race now to tighten up. Traditionally, this is anything but a traditional year but usually a candidate gets a big bounce. Hillary clinton in philadelphia and the week after that, we will see how it plays out after that. Thank you. Eamon javers in cleveland. I have a big pick for vp, ivanka. Thats talk. Especially in new york. She would turn 35, i believe, this year. So clearly she is old enough to be president if it were to happen. Obviously i dont think traditional calculations are what will drive trump and im not sure he is even going to go there. What do you think, elan . I dont know. Up with of the potential possibilities of dump trump is broker some arranged marriage where delegates are the ones who try to put forth a name for Vice President ial pick. It could potentially not even matter who he picks for Vice President if it goes to this runoff fight on the floor. Soz so more of a deal maker. Lets ask. Donald trumps president ial campaign may mark the First Time Since the primary sister here that the candidate with the winning amount of delegates is in danger of not becoming party nominee. The Gop Convention is reportedly picking up steam. One ofity leaders says there is enough support on the rules committee to release delegates who dont want to work for trump. Before that kendall, you want to address what we were saying a moment ago about is there somebody who you are leading the charge to kind of push for a vp that could kind of playcate everybody . Bring everybody else together . You know, were not. Let me be very clear. Voters dont vote on Vice President ial pick and reminder that the delegates on the floor are also have the ability to nominate a Vice President ial pick. And to vote individually on that. So actually voters and delegates at the National Convention that will be selecting the Vice President ial pick. As well as the fact we will be selecting and nominating the president ial pick. So president ial candidate pick. So right now, weve polled over half of the dell gits and 70 are in favor of unbunding. Now im going to the rules tomorrow with the conscious claws but that does not give permission to unbind. It is an inherent right supported by the Supreme Court decision and recently the virginia decision that says a state cannot inflict itself and pay consequences to a delegate if they choose to inbien. So the rule is codification of something that exists. I have the 28 votes oh 28. Okay. Thats significant. Yes, minority report and moves on to the floor. Exactly. On this, this point about the conscious clause though, listen, if im a delegate and i dont want to vote for trump, why dont i stand down . The point is to express what the voters want, ultimately, right . Actually the delegates are the ones doing their job to use wisdom and disernmecertainment apply the knowledge they have at the time. As for the job of the party within a representative system and to take that job seriously and make the best decision for the good of the country. For the good of the nation. And the fact that the open primaries and blanket primaries brought in all the democrats and independents to give us a trojan horse candidate that we decide. Do we rubber stamp that candidate or do we as republicans actually choose a nominee that reflect the system and Republican Values mp. So just to be clear, it is a job. And extremely important. But you know, if i if i in my job feel as though i object, because of my conscious, what im asked to do, i resign. That is, you know, you say i cant do this and until i clear the way for somebody else. Thats not what america is built on. No, america is built on the godgiven right to conscious. Thats why the pilgrims came here. Why we have a bill of rights. Why the constitution codifies that right to conscious. We cannot force doctors to perform abortion he. We cannot force the mennonites to go into a draft. That is something inherently systemic to everyone in america. And the state or Supreme Court or the Supreme Court decisions already proved it but the recent course precedent set as of tuesday actually has driven more people into our camp because they realize they cant be punished for yeah. Bringing in the panel for a second, elan. What happens if you all get the 28 votes you need it pass this under the rules committee or present a minority report to the full convention. What happens if it fails at that full Convention Vote . What are your options then . What do you plan to do . Oh, that okay. Yes. We have a plan b and plan c and plan d and you will see we have the resources to do it and the program to do it. We have pulled over half of the delegates, 70 are in favor of unbinding. They realize they have the tool to unbind. They are free to be unbound. Now that the hammer of the the state has been removed and the threat of prosecuting you or put in jail, not talk of the table. So efb from the woods we are waiting to and we have the numbers. Real quick. Whats your plan b . Our plan b is to take the action to the floor. We have the numbers to do that. And that is exciting. Because were actually going to have a convention and thats the job to be dell gits and make decisions and it is a the way it is supposed to be instead of rnc control it. We will see you out there, kendall. Colorado republican delegate. Lets get to sharon epperson. Hey, kelly, here is what is happening at this hour. Boris johnson is appointed britains new foreign secretary. One of the leaders of the campaign it leave the european union. He will not be responsible for leading britains eu exit talks. Treasury secretary jack lou in brussels today meeting with the agencys Vice President and says britains exit from the eu should take place in a smooth, pragmatic and transparent manner. Defying the south china sea, china tested two new airports on reclaimed land in the disputed island. Two chinese passenger aircraft are seen landing at the airport. And amazon says its Second Annual prime day was its biggest day ever. It says orders were 60 higher worldwide than a year ago and 50 higher in the u. S. The top seller of the day, fire tv stick, which was on sale for 25 bucks. Thats cnbc news update at this hour. Back to you, kelly. I didnt pick one up myself. I did not either. But i know someone who did. Nor did i get the motion activated glow in the dark toilet that i just cant get over. Unbelievable. Soon to be featured in households across the country. Thank you. Take care. Sharon epperson. Dont miss an interview with michael ward. Find out how the rail operator is making up for coal shipments. And best state for business this year, coming up, scott will reveal the top of the top stads. Thats the decade db lonk run of this contest. Closing bell is coming right back. Tokyostylramenoodles. When you cook wi incredible inedients. Yomakekencredible meals. Resh ingredients, stbystep recipies, delivered to your door for less an nine dollars a meal geyour first two meals free at bluen. Com ok. Resh ingredients, stbystep recipies, delivered to your door for less an nine dollars a meal our partnership with habitat for humanity at pg e, we believe solar should be accessible to everyone. Allows us to provide the benefits of solar power to the types of customers who need it most. Pg e provided all of the homes here with solar panels. The solar savings can mean a lot, especially for lowincome families. With the savings that i am getting from the solar panels, its going to help me to have a Better Future for my children. To learn how you can save energy and money with solar, go to pge. Com solar. Together, were building a better california. The dow adding 25 point or so to close at a record high. 18,372. S p up less than a point. Still good for a fresh high as well, 2152 is the level for broad index at nasdaq a bit lower today and oil hit hard interestingly the transports up though on results from csx, which contributed. Those in a moment. Yum brands reporting earlier as well those shares up nearly 4 in what appears to be a stroing of positive responses anyway to the numbers. It is relief that we didnt have a revere preannouncement season. People want it make sure the numbers come through. And i think expectations are relatively low. And they are two phases. Warm up and build it in in the second week lets say. Youre more quicker on the trigger to sell. But shares of Royal Company csq are popping earlier. And the company before the close beating estimates on the top and bottom lines and shares responding positively. Joining us is michael woord who is chairman and ceo. Good to see you, michael. Good afternoon, kelly. It was your own tweet that put out the wrong information so you wanted to correct it . Yeah. That was an incorrect tweet about 2 00. We pulled that immediately. But once we found out we thought it was important to get the correct information out to investors as soon as possible so we released early. The perils of putting out press releases, as many are aware. The beat relative to what people are looking for for earnings. The poll itself is improving or you are just improving around that . No, coal continues to climb. Down in the quarter but 34 kelly. So very similar in the First Quarter. Over all our volumes are down 9 . We saw most markets pretty challenging this quarter. What we focused on is things we can control. Services dramatically improved from last year. Safety is we have less accidents and injuries both big story is tremendous productivity in the quarter. And we have about 96 million worth of productivity in the quarter which took the half up to about 230 million in savings as we try to adjust lower volumes. So coal declines getting worse. How much worse now as we see bankruptcy happening. Week after week. Do you expect things to get . Well we expect for the year there will be down about 25 in coal. Because as we move into the second half we will be lapsing some of the weakness that was in the second half of 15. So for the year, we are expecting a 25 decline. So the year over year will ease up some in the second half. But the absolute volumes will still be in that 22 to 23 million a ton range we saw in the first half. You mentioned improvements including efficiencies on the cost side of things. Sure that cant continue forever and in your view will drive the top line tp is it a better economy . How do you think things are out there . Other than really specific challenges and coal in some related areas. A big factor kelly, is the strength of the dollar, low Commodity Prices and actual decline in production in the United States. The First Quarter idp down 1. 6 . Estimates this quarter coming around negative 19 and forecast for Third Quarter is negative 2. 4. So if you look at that strength in the dollar it is hurting manufacturers. Low Commodity Prices hurting many of our customers and those factors are still in play. We see them pressuring our vibes for the reminder of this year. And still, able to eek out a little bit better than what wall street was bracing for. Thanks for joining us this afternoon. Thank you, kelly. Thats michael ward. Ceo of csx. Utah takes the title of 2016s top state for business. Which state earned the crown the last decade . Thats still ahead. Jamie dimon saying he will raise the minimum wage over the next few years. We will hear from a ceo who is paying his fulltime employees 15 bucks an hour. We will take a look on this move in the broader economy. Youre watching cnbc, first in business worldwide. Card from capital one. Shy i havh with it, i iarn unmited 2 ca back all ofy purchasing. And that unled 2 sh back from spark means thousandof dollars each year goinback into my business. Which aduel to my bottom line thousandof dollars each year ats in your wallet . Iness. Perfect driving rerd. Until one you clips a food truck then your tes gohrough the roof. Perfect. For drivers with accide forginess, libertmutual wont raisyour rat du your first accident. And if you dhave an acde our claims cters dare ailablto aist you. Twentyour seven. Call for a free quote tod. Liberty mutual iurance. Welcome back. Jamie dimon speaking out about wage stag nation and doing something about it. He wrote an op ed for the New York Times titled why are we giving our employees a raise and raising the minimum wage for American Employees from 10. 15 an hour to between 12 raen 16. 50 an hour defend pending on geographic locations. Chairman and ceo of bank united who knows a thing or two about paying people 15 bucks an hour. I do. How long has that been going on . For the last three years. We dont have fulltime employees making less than 15 an hour. We have 1700 employees. Why are these employees . Our mark set florida. Whole state of florida and new york centered around manhattan and the burroughs. Is it market pressures pushing you up to 15. We found that since unemployment has gone down to the levels it was at that it is important to keep up the hourly rate to attract the right kind of employees. With any size retail bank, i guess, just has to battle realities of how profitable they are on a branch basis. You know, low Interest Rates and all the rest of it so theres been a reduction in things like teller head count. Is that something that smaller bank will feel the brunt of or how are you navigating that . Were seeing the same thing. Branches are becoming smaller in size and technology is taking over a lot of the jobs. I think total bank tellers in this country are down about 20 in the last couple of years. So thats a thing we will see continuing. So while we pay these people a higher base pay, and higher hourly wage, theres fewer of them. What are you doing to invest in those workers . Those jobs are jobs that will one day be obsolete because we are doing this to do our banking instead. Thanks for reminding me. What are you doing to ensure they can move up in the company. Outside training and giving them other jobs within the bank that embrace the new Movement Toward technology. Many are taking advantage of it. Some are not. Some move on to other fields. Do we need a top level fight about raising minimum wage if it is going in that direction already at least from your experience . Well, you dont have to have that fight where i come from and in my business because competition is driving it to where it is today. And i would and i dont know but i would suspect that most of the Smaller Banks that you would ask, i dont think were outlier of what we pay in terms of 15 an hour, i think most pay those numbers now. How has it rippled through your company . Gradual over the last four or five years. So it is not really noticeable. I was quite frankly surprised to hear that anybody is paying 10 an hour in the industry today. I think most people were. Did it bump everybody else up too . Sure. Or bring everybody else up it bumped everybody else up too. People must be happy. One would hope so. John candace from bank united. For the past decade now states have been rated. Which takes the title of the top state of the decade . We have a clue. Scott is in that state. Wo, hi, scott. Did you ever feel like you got rope need something . I dont. I love doing stop states. I wouldnt want to be a naysayer. Wow, i could go on all day. Weve been doing this for ten years. We love doing it. Utah, as you said, top state for business for 2016. But whos top of the tops . Were going to tell you when we come back. s a question we get from some of our largest banking clien. The face otheir business was tellers. Then atms. Day s their mobile app runninon the ibm cloud across every transaction, the hybr clo helps their data mqukly and curely r ients are buildingut features and pushindas faster, on five contints withhe ibmlo, they can move at the speed of a startup. We revealed utah to be the top state for business this year, but which state is the top state of the last decade . Scott cohn joins us now. Hes got the answer. Scott . We got a little tired of keeping secrets so well, so we had to you know, we did this. But yes, utahs the top state for 2016 and its a great state, but in terms of performance oaf time with 2500 points a year, there is only one state that we can cal top of the top. We are at the enchanted springs ranch in bernie, texas. Yes, it is texas, which has never been far from the top in our top state study. Lets take a look at how the numbers shake out. It began with a question. What makes a company decide whether to locate in one state over another . Has that questions turned into a conversation, one state was always in the middle of it. Texas. Texas. Yeah, you got it. Its texas. Americas top state for business three times. Texas has never finished lower than second. Texz dominates with 15,029 out of a possible 25,000 points. Rounding out the top five, virginia, this years winner, utah, colorado and north carolina. Every year, we also rank the states in ten categories of competitiveness. The top workforce over ten years is georgia. Lowest cost of doing business, south dakota. Best infrastructure, texas. Which also dominates the economy category. For quality of life, its hawaii. California leads the way in technology and innovation. Massachusetts for education. The most business friendly state is south dakota. Lowest cost of living, oklahoma. And kcalifornia boasts the best access to capital. So, how do you think your state did over the past ten years . Right now, you can not only look at this years study, which a lot of you have done, but you can look at the top of the tops report and see how the states have done in the various categories over the year. We hope youll go and take a look at it. A lot of terrific people put work into that. A couple that need mention here, betsy spring and jess golden who put this all together. I liked them a lot until they put me in front of those long horns, but theres terrific work here. Thats top states for 2016. Utah, congratulations. Texas, congratlaces. Still impressed with that long horn. This is why were wor are ied about a tex an. Kind of a joke, but theyre doing pretty well down there. You know, texas does very well. Weve been highlighting over the last couple of years some of the issues that texas has. One is education. That ranking is is getting worse. And thats something that the sate is going to have to look at and deal with, the other is quality of life. And a lot of people tend to corquarrel with that here when look at Health Insurance coverage, but its important as a consideration to do business. Also, inclusiveness. We try and look at it from the standpoint of a business thats trying to attract the widest possible range of workers and so thats why we grade it the way we do. Almost like that long horn knew he was on camera. Kind of tilted a little bit. Probably his good side. His good horn. For a state thats been growing so fast for so many year, looks like they need to replace some of the old housing stock. There was a real shortage in the dallas area, but where are yu again . We are in bernie, texas, just outside of san antonio, near hill country. And place called the enchanted springs ranch, a really cool place. Back in the old west. Its encharnting. Llbj. Scott, real quick, who was the worst . Did you rank down to number 50 . The bottom of the bottom for the past ten years . You know what . You got to go to top states. Cnbc. Com. Thats a great tease. Youve become the master of them. Thanks, scott. Really appreciate it. To be doing the unveiling here on closing bell tomorrow, jpmorgan reports before the bell. Citi and wells fargo will follow on friday and i on what to watch when we come right back. Foand millns more icics lo feel its effects. R lets walk together to make anven bigger impact and d alzhmers fogo. Nd ywalk near youat alz. Org. Amic express open cards can he you te on a new job, or fill a big order or expand your office d ta on whatever comes next. Abo my toothpas she en ganmohwash. Vice. Cahelp prere youfogrtht ope. Busheea dentist so. I kind of have to listen. She id jen, go pro with crt prohealth advanced advance to healthier gums. And strger tefromay. Using crest toothpaste and mouthwasmakes my. Whole moutheel esome. And my teeth are stronger too. Crestpro health aanced. In ese 5 tdeists check tal. Thhe up . So go. Pro with crest prohealth advanced. Moms right. Ain welcome back. Weve made it through the first couple of earnings reports, but now, we get the banks. Jpmorgan tomorrow morning. Wells and citi on friday. Theyve really set the tone here now. People look to all parts of its business. Do you think it could end the good feelings because we know the challenges with this space . I dont know that it will end it. I know that when the big banks report, usually, you have a zero sum gain on the trading side. Some better than expected. Not because theyre taking money from each other, but the vagaries of the position. So, i think the trading line, nobody expegts much of it for any of these banks, but thats where the surprise can lie. The swing factor. Ill be watching tomorrow the bank or england will be having their policy commission meeting. Most are expecting some type of rate cut are they going to throw in an augmented qe . Theres been so much discussion around are the worlds Central Banks out of ammunition . Were going to find out. This is a real world test. So early in the game to see what any kind of econ reaction is going to be. The markets have bounced back, so its going to be interesting for that committee having communicated theyre going to ease. What if they look around and say were not so sure . This has been the criticism of bank of england, that they were sort of part of this whole project fear of scaring people into believe iing the worst wou happen if brexit occurred. Now, they have to make sure they live up u to it. Elon, mike, thank you. Fast money begins now. Fast money starts now. Live from the market side, im melissa lee. Traders on the desk are tonight on fast, one contrarian indicator signalling big gains. Well tell you what that is and why it means the rally has a long way to go and why Dennis Gartman says to sell crude. And does apple have a pc problem . No, were not talking about politics. Were talking about mac sales. They continue to decline. Weve got the te t,