Retail stocks hit hard today. You can see it trading down 19 there. A number of top executives telling us consumers are still spending. So whats behind these moves . Were going to take a deeper dive into whether the consumer is weak right now. A disconnect in all of that. Big earnings from tesla. 21st century fox. And square reporting after the bell tonight. We will tell what you to expect from those reports coming up. And more reports about turmoil between the Republican Party and nominee donald trump. We have outspoken libertarian Penn Jillette. Among other things. Look forward to penn coming up. There he is. He calls himself a professional juggler. But he is so much more than that. We will talk with him later. We start with the bullish call on gold. Precious medal falling today. But up 30 this year. Bill gross was on power lunch earlier today and he made his bullish case for the commodity. I like gold, too. I think ultimately if fiscal stimulus comes in and weve seen that in japan, by the way, a Remarkable Program in japan. If we see fiscal in japan, china and in the u. S. After the elections, then i think we should be investing in real assets as opposed to financial assets. Mr. Gross, latest of big name investors to make this case for gold. Joining others such as sam, paul singer, jeffrey gunlock and george sorros. Does the gold rally have more room to run . Lets bring in rick from eam partners who is bullish on the precious medal and Td Ameritrade who sees it going big. You have people feeling bullish. What prospects do you see here . Bill, youre so hi, vick. Hi, bill. We did this in 87 or 88. The first one. I think kelly is matter associate but thats dave rent story. Hardly. I have to agree with you. Youre in good company. Shes set on gold. Why are you bullish right now . If you believe the dollar is going to be lower because the fed cant raise rates because of a weaker economy, let me give you one statistic. The commodities market topped on april 29, 2011. The bottom on may 8 to 11. And gold market bottom this last year and on december 3rd, the dollar bottom on topped on november 30th. So they are noncorrelated. So actually they are negatively correlated. If you believe the dollar is going to come down because of weakness in gdp and weakness in the economy before the election, there will be no increase in rates. Gold will go higher. Okay. J. J. , why dont you think it is going much higher from here . Good to see you. Good to see you. I think one of the things that concerns me here, as you introduced the segment, gold is up 28 on the year. And so often people see that and jump right in. It just failed at the 1380 level. I think one of the things people have to be concerned about is actually this earnings season we are starting to see ceos talk about growth in the future for the first time in many years rather than we can get by by just cutting expenses, et cetera. We are continuing to see a real pressure put on the fed to raise rates. Even though the probabilities of them doing so is only about 38 right now. We continue to see pressure on them to do so. They want to do so to hold on to their credibility. So i just think that gold is under pressure because of those reasons and i find it hard to believe we get any break out factor between now and the elections to be honest with you. Unless there is some major unforeseen event. As we look at the normal course of business, it seems hard to believe that between now and then people will rush into gold for some protection. So we will have to see. But i think we will go down and test the 1320 level that we came off of. I understand why people want gold. It is a unique thing to own. It has Monetary Properties and unique history. Ef dollar people put into gold in investment is one thats not going into the productive capacity of the economy. Maybe helping gold miners expand or something. Is this the best way for everyone to put their money into investment . It is not like itselfgenerates any cash flows. Neither does t bills. When you have negative Interest Rates virtually in a third of the world, you have talk of a cashless society, you have every scheme that was ever created in mankind, gold is far more valuable just on that alone. Because youre not getting yields spanish bonds are now negative yields and youve got 500year lows in everyones bonds. And i mean, its easy to buy gold from that point of view. Thats the case, vick. Then do you have to like gold here with all of that remaining the case . It seems like these unusual circumstances, if they finally, if we get a more normal outlook, does that mean your case for gold goes away . Say that again. If what . If we dont have all of these assets everywhere with such negative yields, does that make the case for gold go way . But we do. And i dont see any growth in the world. Thats the key question. If you think the growth is going to come back into the world and therefore say the dollar would rally because the fed will race raids then the gold will go down. The question is, you dont see that. J. J. , i guess we have to define gold and what its purpose is. Is it an inflation hedge or risk asset . And if you believe its an inflation hedge, people who are buying gold in some cases feel like this monitory policy that pushed the rates to negative yields to some point will eventually lead to a hyper inflation period and thats why they get in at this point. I guess you dont see it that way. Maybe in the future thats the case but were not there quite yet. I just get concerned when people are going in and buying things near a shorter term top that we just came off of. And i think the other thing is i think sometimes people also forget the number one use of gold is still in jewelry. So i think you would also have to have some belief that the economy will really recover. We look at the jewelry stocks. They are not exactly, you know, setting the world on fire so to speak. As i said, i just think for the next, until the end of this year, theres no real sign to me that gold should be going up on a normal course of business. All right. We got to go at this point, guys. J. J. , good to see you. Vick, dont be a stranger. Thank you. Stay young, bill. No, youre the one that is staying young. Somehow im getting older. I dont know how that works. Oh, youve got a big what does that say . Theres a shift to taking place within the Federal Reserve about how many more Interest Rate hikes we can see this year. Steve has more on the story. Steve . Yes, kelly, edwards saying this year a rate hike could be appropriate. Emphasis on one rate. He is the First Official to hint in single days for a single hike in 16 rather than multiple ones. Bill dudley and atlanta fed president dennis larka here on the show yesterday, here is what he said. At this point, i dont rule out a rate increase at the next meeting or later in the year. We just have to wait and see how the data come in. The situation is maybe a little bit ambiguous. I can imagine conditions in which we could have a rate hike. Asset valuations are something we have to continue to monitor and watch and at the moment i would say they particularly deserve watching because they are relatively buoyant or relatively high. More information on valuations in a second. But the latest talk about just one hike would mean another retreat by the fed towards the markets estimates. Feds forecast in june showing average official looking for two hikes. That was before the brexit vote and recent disappointing gdp data. Stronger than expected car sales however, leading to an optimistic start to the Third Quarter. Here is cnbc rapid update. Tracking 2. 5 with wide range as there is at beginning of the quarter. Q2 actual again looking for the rebound that doesnt happen. Here are the numbers at 3. 7. Mike england over there at 2. 6. Goldman sachs at 2. 5. And moodys analytics, at 2. 2 . Market gets its most important data about the state of the economy friday when we have the jobs report. The street looking for 179,000 jobs. And again, scratching our head. Weak gdp numbers, low job numbers. Nothing makes sense any more somehow. Thank you, steve. See you later. Joining us today, kim forest. Steven sarge. And rick santelli. Surge, i know you made a call for gold at the beginning of this year. I assume you hold it. You agree with bill gross if thats the only asset right now . I dont always agree with bill gross, but i do on gold and real estate. I think hard assets deserve to have a sizeable place in any portfolio. Right now with gold were at 7. 5 . I think if you get the correction that one guest was speaking of, i think you go up to 10 . Im not thinking of going up to 5 at any time. I think the global debt super cycle although we may see an Interest Rate hike from the fed at some point and that super cycle is not going anywhere. If you go five or ten years down the road, i know that seems gigantic right now but you have a chaps for elliott wave type move with gold. I think is some place you want to have some of your money. Are you enchanted at all by gold here . No, not really. Were a Value Investor and theres no inherent value of gold except what people will pay for it, right . So im looking more towards tech stocks and you might laugh, but that is not facebook or twitter or any of that kind of stuff. This is productivity giving sort of boring old tech stocks that pay a dividend and actually their earnings showed more revenue in this quarter than anticipated and so thats kind of making me Pay Attention to that sector. In microsoft computer associates, right . Yes. Yes. Dividend and you know some growth. Real meat and potatoes kind of stuff. Rick, what do you think about the argument for gold and what did bill gross have to say . I dont disagree. But i think when we started going off the path of trying to dissect gold as to what it means, thats an exercise in few tilt because most people investing in gold have three books on their bookshelf. Fountain head, atlas and capitalists. The iran crowd. They arent looking at inflation. They are purely looking for set narrow that may be playing out. Central bankers, and to hear Charlie Evans and comments about tightening at a time when economy isnt nearly as its been on many occasions during last 3 1 2 years, even they sense they are losing control. And this is a last ditch effort. And i think it is a bit depressing. And so yeah, i think it is a big deal. The more i hear people talking about gold, smart people like gunlock and all of the people mentioning, bill gross, i hear an old strujer martin line. What we have here is failure of central bankers to address crappy policy, and it is. When you listen to lockharts comments, he is looking month to month. They sound like market timers of retail type trader. Okay . They need to take the longer view. Maybe one trend they should look at is, picking up many times, eight months running, where cpi is over 2 but they choose their own specific pce calculation. I wish i could pick the calculation of benchmark my mortgage on but i dont have that luxury. That allows them flexibility. How many books have you read . Sorry . Isnt it funny, how we start every quarter interest tracking 2. 5 . I think thats just amazing. And yet it sinks as the quarter goes on. Is that your point, sarge . There was a fund, right . Expenditures up 4. 2 throughout the quarter but it if you track that quarter, personal spending is higher than personal income every month. And savings, digging into savings. Youre exactly right, sarge. Let me just ask with all of the concerns about the economy heard it on the business side and on the consumer side and we will debate that later but what gives you confidence the spending for the confidence continues coming in at a descent clip . Two things. I know well, we dont know what future holds. Lets make that perfectly clear but we do see people continually added to the work roles or at least that the data were given. And at the fundamental existence of an employee is a computer somewhere. So as long as we have some Growth Companies are going to have to continue to add to i. T. , thats just what we need now. But you know, these are just long lived trends like the cloud, internet of things. Productivity enhancing initiatives. That, at the end of the day, growth or no growth, companies will turn to that. They have to. We force them to. As shareholders. Very good. All right, folks, thank you. Been doing this x number of years. First time we have ever quoted strujer martin on fed policy but there is always a first. Thanks, all. See you later. About 45 minutes to go. Stocks trying to hang on to positive territory. Dow up 12. S p up 2 1 2. Transports up 50 points. Rougher go of it lately. Nasdaq up 14. We mentioned mixed signals on the you retail front. Kate spade faltering while auto sales look like they have hit a peak. And Consumer Spending is on the rise. We will talk about whether consumers are tapped out or not, coming up. Also ahead, the Republican Party trying to team donald trump. We will discuss their latest efforts and gop reportedly to conduct intervention to get him back on message. Youre watching cnbc, first in business worldwide. Before taking his team to state for the first time. Gilman go get it, marcus. Go get it. Coach gilman used his cash rewards credit card from bank of america to earn 1 cash back everywhere, every time. At places like the batting cages. [ crowd cheers ] 2 back at Grocery Stores and now at wholesale clubs. And 3 back on gas. Which helped him give his players something extra. The cash rewards credit card from bank of america. More cash back for the things you buy most. Sngs shares of avis, budget up about 6 . Raising the end of its fullyear earnings forecast despite reporting Quarterly Earnings miss. Avis budget ceo says Current Quarter has begun on a positive note. He sees pricing in the americas increasing. Year over year. Meanwhile, kate spader getting crushed on Earnings Report. Kate spades comparable sales is plunging. Sales improved only 4 year over year. Actually up 1 when stripping out online sales. Thats far shief expectations for an crease of 13 . Profit fell short too as a result of all of it. Kates big slashing its full year profit and sales guidance. On the Conference Call executive point to several reasons for the disappointing quarter. Most are external. Like the outlet location answers customers looking for deeper discounts in handbag maker wants it offer as it works on reigning in its promotions. Kate spade adding it did miss opportunities to sell newer in demand styles because it didnt have enough inventory. Didnt quite anticipate that demand. They have product in their own stores and in Department Stores like macy and nordstrom which will report next week. But First Quarter results and lowered guidance from macys and nordstrom isnt giving investors much to feel bullish about for the Second Quarter. The group being the Department Stores is suffering from traffic shifting to off price retail like tgx, amazon gaining in its apparel share and overall decrease in apparel spending by consumers. Bill . All right, courtney, thank you very much. While some are fearful of seeing weakness, a few ceos dont exactly agree. Listen. Customers are willing to spend clearly, willing to spend on their homes. People are traveling. Demand is very strong. If we go back into the first half of last year we have seen a very steady gradual improvement in the consumer. Lets ask two economists for their take. Joining us are dana peter sop from citi. Dana, starting with you, ceos are supposed to be upbeat and they certainly have been. But undeniably their companies are showing that consumers are strong in these cases. In Overall Economic data, gdp data looks pretty strong. So what do you think is really going on with the economy . We definitely do believe that consumers are driving growth in the economy. And thats a function of a number of things. We do have very easy fed policy consumers have healthier Balance Sheet after many years of pretty massive deleveraging. Increased purchasing power from lower inflation. There is also just a general sense of greater confidence among consumers. I have a theory, not about consumer, it is about the retailers. There are just too many retailers out there and they are beating each other up going after market share by discounting and Free Shipping and all of that stuff. What do you think . I think thats right. I mean, youve got tremendous competition from the internet and at the growth of these Big Box Discount Stores kind of killing the mom and pop sectors. So it is just the competitions too much. Consumers fine. Helping drive the economy. But you dont necessarily see that in company profits. I have a note from cowen here thats constructive on the consumer saying summer is set to sizzle and dana predicating that on wage growth referring in fact to minimum wage hikes to the fact that 3 Million Consumers will see wages rise and lowincome consumers should benefit in terms of spending there. Would you agree, is thats whats going on here . We definitely do see awkward wage pressures at lower end of the income spectrum. Certainly with your Big Box Stores and certain retailers. But also at the upper end. So we do believe that the, just being so within that range of full employment that we should see greater wage pressures. But we just havent seen evidence of it yet. That its become much more broadbased. Which sectors of retail do you think can benefit the most . Is it the lower priced . The online . Where do you go to find better profitability right now, do you think . Well i think the sector thats really booming is one of your quotes that one of your ceos suggested. Anything related to the housing market. Just riproaring growth in furnishings and you know other items that go into your house. Thats a very strong source of growth. Autos is very choppy but is an upward pattern as well. So those i think are the strong areas. One thing i want to adhere is there shouldnt be any surprise here that the consumer is outperforming the economy. Things that are hitting the economy right now are good for consumers. Good labor market. They see wage growth. Get cheap gas. The strong dollar means cheap imports. All these things are great for the consumer. On the other hand, not all these things are great for the corporate sector. Right. In a way the consumer moved up and little bit of trading places here for the corporate sector benefiting from all the growth to more of the household sector benefiting from growth. Even if thats the case, it paint a pretty robust picture after some period of time of the economy. Assuming that consumer keeps moving ahead. Is this the kind of environment where we should have globally negative Interest Rates where the Federal Reserve should be very wary about any additional rate hikes . I think were in a world where unfortunately the u. S. Is held back by the rest of the world. The reason Interest Rates are so low in the United States is not because the u. S. Economy is crippled. The u. S. Economy is okay. It is because our competitors are having such a tough time. I do think the fed will be able to raise Interest Rates on a very slow basis probably another hike in december and couple more hikes next year. But yeah, i mean, were unfortunately the u. S. Is the only major economy that is showing signs of approaching full employment and we are held back by the rest of the world. All right. Got to go at this point. Dana peterson. Ethan harris. Thank you boij. Appreciate it. Thank you. Thank you. 35 minutes left in the trading session. Back to the narrowly traded day. Dow up just 18 point right now. I learned to make a quick point. Hes right. What ethan harris is saying. That means our Interest Rates are way lower than they should be. And it should mean it is usually stimulate end over time and Inflation Expectation answers none of those things are happening right now. It is really headscratcher. Youve been talking to rick santelli, havent you . The puzzle pieces, you put them there and then there is a couple that still dont fit. Exactly. I said, nothing make sense any more. Exactly. Coming up, drama inside the republican camp as allies of donald trump try to put him back on message. But is he capable of being handled . Also ahead, illusionists, comedian, juggler and now author. Penn jillette is here at new york Stock Exchange. We will discuss his latest disappearing trip and why trump could be as he puts it really, really bad for president. Coming up. Narrator the best place to find adventure. Kubo come on, this way. Narrator . Is in the forest. Kubo wow. Narrator so grab your loved ones monkey dont even. Narrator and explore a world of possibilities. Kubo its beautiful. Narrator visit discovertheforest. Org to find the closest forest or park to you. Kelly, the Trump Campaign announcing they raised about 80 million in july. Thats about the only good news in two weeks. Seeing defections from prominent republicans. Former California Republican candidate for governor last night announced to the New York Times she was voting for Hillary Clinton and raising money for Hillary Clinton. Last night an ally of Trump Campaign manager Paul Manafort told me trump was despondent. The candidate picking fights with gold star family and things of that nature. Today Paul Manafort said, its not bad. Things are okay. But didnt give a ringing endorsement of his ability to steer the ship. First of all, the candidate is in control of his campaign. Thats number one. Im in control of doing things he wants me to do in the campaign. The turmoil and this is another clinton air that if you put out there and that the media is picking up on. Now the staff has said look to trumps rally appearance this afternoon. You can see the live picture. He will come out and talk in a few minute and go hard after Hillary Clinton. We also saw a small step by mike pence, Vice President ial nominee to clean up the mess yesterday when donald trump said he wasnt endorsing paul ryan who has primary next tuesday. Mike pence said he endorsed paul ryan. We will see whether trump memberses any of that today and whether or not he can show the discipline that his staff want of him in the rally today and after today. Oh, john, john, john. The job youve got these days. Thank you so much. John harwood. I told you, tall stuff happened. Our next guest is known as a comedian, magician, juggler. Criticized by donald trump recently and threw his support behind libertarian gary johnson. He is author. You know donald trump. I do. You were on Celebrity Apprentice a couple times, right . And early on you supported him. No. Wait a minute. Never once supported him for president. I was nice to him as cowork he and i do like him. So the minute he announced for president second he announced. That second i was on Lawrence Odonnell show, he announced it and i said although i liked working for him and he is wonderful for reality tv, capricious, volatile and unpredictable, thats fabulous for television. I said, he should not be president. Now what do you think . Now i think i was much too gentle and kind. He is much worse than volatile, capricious and irresponsible. So will you vote for gary johnson . I think so. I think so very much. I disagree with Hillary Clinton on most everything. But at least she is wrong within the rules. Gary johnson, two terms governor of new mexico. He is kind of the only grown up we have left who is honest and straight forward. But you know, libertarians are very far behind. But the fact remains that donald trump is the republican nominee. How did we get there . I think you just have to stay it louder before ill believe it. But there are elements of what he is talking about that are libertarian in nature. Especially with national defense, for example. Donald trump . Donald trump, absolutely. He hasnt said much of anything except ill fix everything. No, he said a lot about how he is calling into question nato i want it is currently structureed. Said a lot about security deals we have with a lot of allies. People are kind of alarmed about it overseas. But that is something the Libertarian Party tend to want in their campaign. Libertarians come from a peace point of view with less intervention. He has different intervention. He has not on any way come out on the less force news and the stuff he is saying over here is just, yes, ill take care of it. Which is as far from libertarian as can you get. But im curious to know your thoughts on how he got to be the nominee to begin with. I think weve gotten to the point, there is a line in apocolypse now that says i pray for my sins that wanted a mission. He spoke from the hip, honestly, outside from the washington establishment. A lot of what that is, he is. It just happens that hes not the right one. And thats what is breaking my heart. Because im from western massachusetts. A dead factory town. Im 61 years old. I did not go to college. People i grew up with are really suffering. People my age without college, white, in rural areas who are doing terribly and donald trump is the first person who seemed to care about them. Which seeming to care about them is not enough. You have to have some sort of plan of how to help that. We dont want to confuse or dismay a donald Trump Success with a lack of compassion for the people who really need to be cared for. We cant let you go without talking potatoes. For sure. Lets talk potatoes. Where is the rest of you . I was looking sick. Over 335 pounds. Even though im 67, thats still a lot of weight. My Blood Pressure was like uk voltage, like 220. I was sick all the time. The doctors were going to do a stomach sleeve an operation to get me to swallow fewer calories. I decided i could do something as intense without surgery. A friend of mine, ray, who was in the after the astronaut study at nasa, study weight loss and brought me to an intense lifestyle change. The reason i say potatoes is i started with two weeks of potatoes. But could have been anything. Could have been beans, could have been corn. Just a die tote reboot things. To get out of the habit of eating salt, sugar, fat all the time. Social entertaining eating. Now i eat a, i think anybody would agree, is a wise diet. That is plantbased. Has it turned you off potatoes for good now having only potatoes for two weeks . No. A lot of people that go through this hate them. They are still my friend. Im friend with the potato kingdom. It worked out. You look great, by the way. You look great. Thank you again, thrill to have you. Name of the book is presto how i made over 100 pounds disappear and other magical tales. I have read the first chapter and it is already hilarious. Im a big fan. Thank you. Time for cnbc news update. Here is what is happening at this hour. Russian state tv showing pictures of of fighters leaving aleppo through corridors. Both groups were allowed to escape the wartorn city. The u. N. Is concerned that between 250 and 275,000 people are trapped in aleppo. In his weekly address pope francis said he hopes the Olympic Games will inspire athletes and spectators alike to pursue a goal of solidarity and equality. He called those goals more precious than medals. The closing of a kellogg plant in indian will reduce production and impact more than 100 workers. A Company Spokesperson said the closing will happen in steps. Shutting down operations in february and completely closing in september of next year. And a zoo in britain is celebrating the birth of two very rare leopard cubs. The mother delivered the pair a few days ago. Visitors will be able to see the cubs via a live stream broadcast on a screen outside the enclosure. Its believed there are only 70 amar leopards left in the wild. Thats cnbc news update at this hour. Back to you, bill. Sharon, thank you. I kid you not, Penn Jillette just made his ear piece disappear. I hope they can get it. I hope they can get it out of his hear. It is in there somewhere. A leading trader will tell us what he is watching into the close here. Get ready for another onslaught. We have earnings from 20th century fox, tesla and square. We will run through estimates and break down the numbers as soon as they get the take for you. All ahead on closing bell. Stay with us. In a world held back by compromise, businesses need the agility to do one thing another. Only at t has the network, people, and partners to help companies be. Local global. Open secure. Because no one knows like at t. Welcome back. Heading into the close. Not huge move in markets overall but watching crude oil. Whats going to dictate whether we can break this losing streak and really start to move higher . Thats about it. About 80 reported a little better than expected. All about friday. Jobs out on friday. Thats what we are waiting for. If today is any indication, could be up between 170 and 185. Not great but not as great as last month but better than the month before. Over all were just waiting to see. Great number. The market will sell off. I was wondering too because it goes back to the fed. How good does it have to be for people to say, we will raise Interest Rates again. No matter what it is, i think by default we raise our interest all the time because japan is there, europe is there, i dont think they will raise rates this year at all but it gives the impression traders have an excuse to sell off. If you see like 200 plus you will see the Market Selling off. We will see if we get that. Again already focused on friday morning for now. Thank you. Thank, kelly. Alan valdez. Bill . Yes, right now the market we have 18 minute left in trading session. Dow up just 14 point. Time warner is opening its wallet and itll help hulu enter the next generation of the streaming wars. Low down on todays big media deal coming up. First, no one has ever confused playing pinball with healthy exercise. But thats exactly about to change with the newest fitness craze. Details are next on closing bell. This is ag6, a studio work out where you follow the lights on the floor and the walls and you burn up to a thousand calories doing it. It cost over 1,000 100,000 to put it in but they think it is worth it. Technology is from a Spanish Company that built over 30 of these studios mostly in europe. This is the first u. S. Studio just a few months old and they tell me there will be more. But wait, there is more. As you said, aerial yoga. What about in arlington, virginia in a happy flying baby if you will. Great for the spine, core and your grip as you age. But mostly its just new. Something different and that is the whole point. Now both of these offerings are in the sort of 30 to 35 range for a class but people keep coming back so they have package deals, package offers. Again the idea is to keep it new. It might look a little gimmicky but folks are coming back and buying packages. So, bill, kelly, the question is what exactly do i have to do next . American anyona warrior, diana. Hello. My kids are ready for me to do that. Were watching it. Im not saying yes. No. Peg board, i think you could dominate. Bills all excited about it. Listen, they always say, ask diana a question. I never ask you a tough question because i know you can kick my butt. So if any of you want to know where diane got her guns, this is where she got it, right here. By the way, ive done that aerial, diana. It was a bachelorette thing. And clearly this wasnt just our idea because these they seem to be tailor made now for hosting these parties where people just come in. And like you said, whoever wants to try something new. Oh yeah, it is happy hour. It is absolutely the new happy hour. People are coming in and then going to happy hour after. Some are mixing it with a happy hour. But that yoga, i have to say, my back loved it. Good stuff. Thank you, diana. Thats amazing. You have to be pretty graceful to pull this stuff off, too. Ill take the old happy hour any time. Weve got only about 10 minutes left to go in the session. Dow is up 18. S p up. And nasdaq is up 16. Next, more earnings. We will tell what you to expect from tesla, square and 21st century fox. After this. Will your business be ready when growth presents itself . Our new cocktail bitters were doing well, but after one tradeshow, we took off. All i could think about was our deadlines racing towards us. A loan would take too long. We needed money, now. My amex card helped me buy the ingredients to fill the orders. Opportunities dont wait around, so you have to be ready for them. Find out how American Express cards and services can help prepare you for growth at open. Com. Announcer dont let salmonella find out how American Express get funky with your chicken. On average, one in 6 americans will get a foodborne illness this year. So, learn the right temperature to cook each type of meat. Keep your family safe at foodsafety. Gov. Big earnings coming out after the bell. We have phil in chicago on tesla. Julia on 21st century fox in los angeles. And at cnbc Global Headquarters on square. Julia, start us off. Big question is whether 21st century fox will deliver as many of its rivals have. It will deed. On who things. Impact of disappointing movie perfect formance and hit it may take on Currency Exchange because of international exposure. 21st century foxs fiscal earnings are expected to drop 5 from a year ago on 8 higher revenue. On the call listening for guidance on the companys plans for cash cow fox news in the wake of roger ailes departure. Bill . Julia, thank you. Phil, what do we expect from tesla today . Well, its a loss for the quarter. Thats the expectation out there. The estimate and i should put a big qualifier is the loss of 52 cents a share. Lets be clear. The range for how much they could lose is all over the map given guidance is all over the map from analyst. So it will be interesting to see what that number comes in at. Three things we are looking for. In terms of this Earnings Report or what they say when the report numbers for the Second Quarter. Production guidance, how many vehicles are they now making per week. What are they expecting by the end of the year. Gross auto margin. 20. 9 is the consensus there. Anything above that is good news and model 3 reservations. We havent received any updated guidance in some time. Last time we heard from these guys, 737,000 model 3s reserved. And whether or not they changed guidance in fullyear delivery, currently delivering at least 80,000 vehicles. Lets see if that remains the case when were on the Conference Call. Kayla, what about jack dorseys other company . It is the other company, bill. What we are looking for is a loss of 11 Cents Per Share on 406 million in revenue for the companys Third Quarter as a public company. Second fiscal quarter. Interestingly what people will be watching for first is gross payment volume. How much are they processing in tran transactions . That is interesting for retail as a whole. And how much revenue comes from their card readers as te transition to chip, its been huge, selling so much more of the readers. Thats hardware portion of the puzzle. But then theyve been trying to move more into software and data and lending them more money. How is that side of the business looking . And finally perhaps most important to wall street when will they turn a profit . They said on an adjusted basis they are profitable this year and is that guidance still in tact and are they able to break even this quarter like they expected . Guys . All right, very good. Some very interesting reports coming up at the top. Look forward to hearing from all three of you at that time. And we will come back here in a moment. The closing countdown for this day and after the bell, hiphop producer and recording artist germane dupre on the music streaming business and on kanye west. That should be interesting. Youre watching cnbc, first in business worldwide. Welcome to opportunitys knocking, where selfproclaimed financial superstars pitch you investment opportunities. Ive got a fantastic deal for you gold with the right pool of investors, theres a lot of money to be made. But first, investors must ask the right questions and use the smartcheck challenge to make the right decisions. Youre not even registered; im done with you i can. I can. Savvy investors check their financial pros background by visiting smartcheck. Gov all right, a little over 2 minutes left. Were here just discussing potatoes. Thats how he did it. Thanks all kinds of things, folks. A hundred pounds on potatoes. Up to today, seven consecutive down days. In fact it was last year at this time when we last saw that. But today apparently the street will be broken. Were up 32 point as we head to the close and the imbalance is to the buy side today going into the close here. Wti, very interesting day. We were below 40. Headed lower. Had hard time figuring out numberes. And Inventory Data which showed a build of 1. 4 million barrels. And a little bit better. Trying to interpret it is all about gasoline. There is such an oversupply. When they figured out it wasnt that horrible, the market turned around. Thank goodness for that. Not good at all for psychology or earnings in the second half. We lost the correlation and tick for tick for a while and thats gone now. Earnings tonight, three very Interesting Companies with Great Stories to tell. We will hear from 21st century fox, tesla and square as i mentioned jack dorseys other company. Remember, Tech Companies have been doing very well this season overall and Companies Like your googles have been providing a lot of the earnings juice. That will help us i think in the second half of the year. I today lohad to look, first, h going public 2014, pricing to find that, spin off, this is the biggest bank in hawaii. Then at home group. They operate 115 Home Decor Stores in the south and midwest here. First big box retailer in over a year weve had here. So keep an eye on that. All right. Were going out with a 35point gain. The losing streak is over for the dow. We have earnings and pricing of two ipos coming your way on the second hour of the closing bell with kelly evans and company. See you tomorrow, kel. Thank you, bill. Welcome to closing bell, everybody. Im kelly evans. Here is wall street finishing stronger than we looked an hour ago. 18,350. S p up about 6 points, 21663 is closing mark. Nasdaq up about 22 point today to 5159. In so doing, the 36 of points helped the dow i think snap a sevenday losing streak. S p snapping couple days of losses. Now, investors getting set for another wave of earnings. Phil lebeau is standing by to cover teslas earnings for us. Kayla is watching for square and seema mody is ready for the rest including first alert and herbalife. Itll be a busy hour. Cnbc Senior Market commentator mark san tolly is on the panel as always and carol roth joins us. Carol, welcome. And joining us on the floor in a minute, mike, what do you make of the market . Yesterday can be said that that decline, shakeout we saw yesterday felt worse because the market has been so common. The rebound probably feels more meaningful because its been seven days down in a row. For the market. To me about the turn around in oil. Who knows if it is a lasting one but it showed a reduction in inventory for gasoline. Actually been gasoline under fine Product Holding crude oil back and refiner stocks rally and treasury yields firm. That was something also people watching closely. Could be nervousness ahead of the jobs number and too many people bullish. And before helping bank stocks today. Those two things to me were key. We basically have been holding this up trend thats been in place for over a month. Carol, you came back. How do things look . Different, better, worse . It is interesting. I think they look like a lot of the same. And i think thats what youre going to continue to see. There seems to be this range that most investors are comfortable with. And i think it is a very nicely fully value range. As we trail off of it, people say okay things maybe look more attractive. I think well be within this range for quite some time. We are heading into earnings season and i dont think anyone will expect anything other than what we have seen. Slow muddled growth. I think thats what numbers are showing and will continue to show and thats what we are stuck with for the time being. Grasso off the floor. Whats the scoop in what are people saying about the market . I used the term yesterday, flat is the new down. People get excited and say oh, my god, whats going on, and youre down under a percent. When have you last seen that . And this market has been this way pretty much every trading day since off of brexit. You cant rely on market going straight up or straight down. But i will tell you, whenever its down, it is down very shortly, right . And it springs right back up and there are no other choices. Im sure you have talked about, no other choices. As long as everything stays sort of where its at now, you cant go any other place for your money or your yield. People get driven into the equity market. Lets look at shares of tesla and square, and both look like they dribble out. This is how stocks are before we get details. Tesla has a bigger loss than expected. Kind of holding in there but again we will have more in a moment. Square popping though, thats interesting, we will get you more details here. Just wanted to mention briefly, we are talking about how people are playing this market and nasdaq and Parent Company of the intercontinental exchange, one of the few Companies Trading at alltime highes. What do you make of that . Also cme as well. Thats right. You have three big exchange companies. And you know, mike, im sure we can talk more indepth about this but when you look at the Stock Exchange and synergy and cost savings and you look at data and services, it is revenue. They are firing on all cylinders. Race to the buy back, 1 billion. And i would look at it as master card and visa of the capital markets. Phil lebeau has numbers for us. Phil . Kelly, we have the earnings coming to us from tesla. What we have is a wider than expected loss. Remember the estimate, these estimate were all over the street. The estimate for a also of 52 cents a share. We now have it as tesla losing 1. 06 nongap basis for Second Quarter. Revenue coming in a little below expectation eats 1. 56 billion. Remember estimate was for 1. 6 billion in revenue. Deliveries, remember we knew this already for the Second Quarter in terms of 14,402 delivered. But when you take a look at companys guidance for remainder of the year, company says it is on track to deliver 50,000 vehicles for the second half of the year. That essentially means they would be meeting the expectation of at least 80,000 vehicles delivered this year. Were just starting to go through the numberes. But again the loss for the Second Quarter on nongap basis of 1. 06 is double what most people on wall street were expecting at a loss of 52 cents on nongap basis. Back to you. Phil, thank you. Investors not too phased here. Shares up about 1 . But there is a lot of emphasis on forwardlooking remarks as well. And also just expect that to jump around as the call gets going too. This is a stock that does often, it is in the eye of the beholder. Are we taking confidence in new updated production numbers. Do we think we can deliver them . It seems like they dont even care about production numbers. Flat is the new down with tesla as well. Seems like production numbers are are ters area ri ter, areary. Maybe it is a commodity number, who knows. Well you bring that into it and the amount of money they are losing usually the thing about this company is the bigger they grow the more money they lose. Yes. But shares arent too phased by this. It is known they will continue to be a big consumer of capital. They are okay for the moment. But they have to raise more capital. It is in the plan, not as though it is a big question mark. And it is like lets call it netflix. Netflix didnt make money on a cash flow basis. They havent attempted to make money on cash flow basis. If you believe in the vision and where they are going then you are willing to go along for the ride. And people have hated netflix the whole time. You cant look at netflix and say is it this or is it this. The two of them, there is a difference of momo and this to me is inexplicable but there is a Short Interest in tesla that is above 23 or somewhere thereabouts. Shares are pending. We will come to this in a moment. We do want to get you earnings from square. Thats a big mover after hours. Appears to be popping at least initially on results. Kayla has more. It is pretty much a beat across the board. Loss of 8 cents a share akrocro the board. Gross payment volume which we just told but is basically the amount of transactions that their readers processed in the quarter. That was better than expected. Notably the company on an adjusted basis notched a profit this quarter of sp million. Ever so slight for this company. And granted it is adjusted so it doesnt include things like sharebased compensation or some of the line items these Tech Companies like to exclude but nonetheless it is a milestone for this company that is also increasing its full year guidance for 2016. It now says that on the adjusted basis it expects to earn 655 to 670 million in adjusted revenue. Its adjusted to be 18 to 24 million. It is expected to be potentially more profitable on adjusted basis for the full year than it had expected o before. So investors will be interested to hear on the call a little bit more about what makes up that sentiment and what sort of line items the company is adjusting for because sometimes that has turned around sentiment after hours. We will just have to wait and see and make our way through the letter but first shares up 10 on what looks to be a beat across the board for square. Thank you. Again a good point with all of these that well see what happens as we get more commentary out on the calls. Square is an interesting one because they even have this new hardware that maybe will get to a problem that was emphasized in the journal. But as we have all dealt with with which is what happens when you good to check out and it is taking forever to deal with. Are you swiping, inserting the car card . They have a reader that bypasses all that. I wonder if that is an advantage over what is already a crowded space. If square can separate from what is a crowded field for Companies Big and small and trying to solve the point of sale issue and seems like a fundamental momentum and in terms of this quarter and stock trading above 14 as recently as spring. Theres been a big discounted supply and crowded short. This is not one where the technology is in dispute. They have a very interesting technology. The question is, can they really put a Business Model around that . And i understand that obviously they are doing a little bit better but certainly not anywhere near what the valuation should suggest for. To avoid what you have with go pro and others which is a Product Company instead after real business. What do you think of jack dorsey though . Here is a break for a guy with twitter, i forget which is morning and which is afternoon he is spending his time with but i think two very different kind of parts of the day right now. Very interesting to see what ultimately ends up happening with twitter and if that sort of quells the issue. Im one that when you have companies struggling like this i like to see my ceo entirely focus on the busy think a lot of investors share that sentiment. So im not sure if this minor improvement is going to change that sentiment. Yeah. At least it is break up for him. You have more here . Yeah. I want to chime in on the contact list. Hardware revenue for the company is up 209 over last year. Largely due to this backlog of merchants and companies that want to get their hands on that contact list reader. Interestingly it is down from First Quarter because remember the transition to accepting chipbased card is back last october so a lot of companies sort of got this problem out of the way so while there might be a lot of pent up demand for it, unclear how many of these people will feel like they need. Great point. I hadnt run into one in a while, so to speak, yet. So we will see how they proliferate. Now to 21st century fox. Julia boorstin has it. Julia . Well the Company Beats expectations coming in at 45 cents versus estimate of 37 cents. Revenue coming in a hair light 6. 65 billion in revenue versus estimate of 6. 68 billion. Company announced 6 cent increase in annual dividend which will bring that annual dividend up to 36 cents a year. Also announcing incremental 3 billion buy back authorization. Now these Earnings Results come on the heels of roger ailes leaving fox news. There is no mention of roger ailes, toe though do talk a little bit about the Fox News Channel being the highestrated basic cable channel. There is also a mention of hulu sayingox welcomes time warners investment in hulu and make a point about how they have expanded resolution of the television with play station view and sling tv and also hulu as well as upcoming fox now. So an emphasis on digital distribution and not a word on roger ailes though certainly to come up in the earnings call. Thank you, julia. People will definitely listen for any more context on that. With anything that bumps against whether or not there is change in strategy or different outlook on fox news in terms of the revenue side. I would doubt that to be honest that they would be forth coming with anything at this point. I do think combined with time warners results it is reassurance that cable business seems okay. Stocks have been under pressure. Old media stocks have been underperforming and it is a little bit of a reprieve on both fronts. Whether it is cbs or fox, i would think they are all buys off of the headline risk. It is never as bad as you truly think it is. And the market overreacts to every headline. I think they are all buys. All the old media names, i think they are all buys. We are going into a political president ial cycle that weve never even thought about before. It is not like donald trump is spending a bunch of dough on this. You think the ratings there will be people spending a lot of dough around donald trump just because they know eye balls will be on the debates. Money willi will be thrown a them. It is king. In market that is pretty fully valued that there are a lot of these companies that fox included that look pretty attractive. Right. And 40 shares falling better than 2 and buy back that dividend is exactly what a lot of investors broadly are looking for in it environment. Lets take a quick check on how square is trading. Seems to be the big mover so far after hours. Up about 10 at last notice. Can you see revenues beat, so did earnings. Still a also but positive with a gain of 8. 5 . Tesla turning lower. Steve, before you go, what is with the watch that is coming up . On tesla. Yeah bp. We joked about production numbers but i think thats important. I think that anything he says, any details around those production numbers i think are going to get back into importance and they are important for the stock moves going forward. But there is a tremendous Short Interest in a name thats over 200 stock. It affects the stock greatly. Thank you for joining us on the floor. Steve brasso has to get money for fast money. Stick around. The rest of the crew will be sticking around with tony dwyer who says stocks could soon take a fall all in the name of zika. Tesla posting the big earnings miss. Find out whether or not that is a sign whether tesla and ceo elan musk are falling. And a 10 stake in hulu, vowing nearly 6 million. How it could impact the streaminging wars of netflix and amazon. Youre watching cnbc, first in business worldwide. At night. My Analysis Shows your stories are actually about human connection, even love. Great storytelling needs drama and empathy. My cognitive apis can help any business Better Connect with its audience. You should try writing a book. Find a remote hotel. Bring the family. I do not think that is a good idea. Welcome back. We start with seema mody and more earnings. Kelly, take a look at jack in the box. Stock is up 8 will after hours. Earnings beating expectations, 1. 07 adjusted. Revenue up 369 million and also topping expectations. Interestingly enough, q4 guidance for jack in the box in fact belowest mates but again the stock focused on the q3 earnings beating expectations in the press release chairman and ceo said earnings per share for Third Quarter exceeded our expectation answers resulted pry hairly from healthy margins combined from proceed of a legal settlement. Up after closing hours, kelly. Thank you. I wonder why they were cautious on guidance. We will see. If you remember two quarters ago they blamed shortfall on all Day Breakfast at mcdonalds. We might be getting past that anniversary and that effect which was i guess sort of disturbing in midday business. We should have a little cheer but there will be more next hour. They will and the phone. Call next hour. Time warner paying for a 10 stake in streaming service hulu. Joining disney, fox and comcast in owning hulu. As streaming wars heat up, warner too late to this party . Lets ask eric from mkm partners. Guys, thank you for joining us. Eric we havent heard as much lately about hulu. What does this deal say to you . I think it is a validation of the Digital Strategy answers over the top services. People are shaving cords, cutting cords. And this is the way for traditional media to take advantage of these types of deals. Why do you think time warner is choosing this moment, though . I think so first of all hulu has been losing hundreds of millions of dollars a year. Content rights are expensive and so theyve been looking for a new investment and time warner was an obvious one given that theyve gotten a great lineup of networks. Ceo of time warner resisted this for a while because he wasnt convinced that doing the sort of next day air shows on demand, was going to be good for its business. It would cut into lead to more cutting cord, cord shaving. He bought into the idea of guess what if we do the live over the Top Streaming Service basically replicating tv but over the web i will buy into that because it preserves the way of my business that i understand. Fees from subscribers and advertising as well. And time warner does a lot of live. Like with the basketball championshipes. And a little bit of news. Live is something they have a tremendous stake in. I think is smart to have hulu at least as an experimental outlet in that direction. But it brings up an odd relationship. Because of who it is owned by, they are on both sides of the content cost equation. If you look at it holistically. Hulu might drive up content test but there are summers of content as well. I have a question for ed. I guess my question is, do you think that this is something they really believe in as a growth vehicle or is this just more of a hedging strategy . I think now it is more after hedging strategy but i think there is at the same time whats going to happen is that people are shifting towards this kind of viewing meaning they will pay for a broadband plus some kind of streaming service as opposed to more traditional service. Of course the cost of that will mount up and it becomes more after secular shift than an economic one. Meaning i will do that because i just like this kind of Service Better even if it costs me the same versus a more traditional cable service. So a hedge against that. People will shift their habits in this way and lose out on that market. Eric, how would you rank all of the streaming services at this point . You know given the content, maybe pricing too that they offer the consumer . I think they all have various unique content features that they are all looking for. Time warner what they contribute to hulu is Live Streaming but they have deals with netflix and deals with amazon. So they are sort of very diversified in what they do. They have their own streaming service with hbo and rolling out Niche Service as well. The way the world is moving is to Digital Services and thats where the millennials are gravitating towards and where the companies have to be. I finally took the plunge. I told you. I wanted to watch some seinfeld reruns. No commercials and 12 bucks a month. Recode is part of fox media which has a partnership with nbc universal. Crude did settle with 40 a barrel last night. We will break down the charts next. Tesla reporting much weaker than expected earnings. But will the forecast for deliveries on the back half of the year give shareholders reason for hope . Thats coming up on closing bell. And move only when you hear the seatbelt click that says theyre buckled in for the drive. Never give up till they buckle up. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, it helps pick up some of what medicare doesnt pay. And could save you in outofpocket medical costs. To me, relationships matter. Ive been with my doctor for 12 years. Now i know ill be able to stick with him. [ male announcer ] with these types of plans, youll be able to visit any doctor or hospital that accepts medicare patients. Plus, there are no networks, and virtually no referrals needed. So dont wait. Call now and request this free decision guide to help you better understand medicare. And which aarp Medicare Supplement plan might be best for you. Theres a wide range to choose from. We love to travel and theres so much more to see. So we found a plan that can travel with us. Anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only Medicare Supplement insurance plans endorsed by aarp, an Organization Serving the needs of people 50 and over for generations. Remember, all Medicare Supplement insurance plans help cover what medicare doesnt pay. And could save you in outofpocket medical costs. Call now to request your free decision guide. And learn more about the kinds of plans that will be here for you now and down the road. I have a lifetime of experience. So i know how important that is. Welcome back. Seema mody is back with more earnings. We are now looking at trip adviser. Company missing expectations. Earnings of 38 cents. Thats below the consensus estimate of 42 cents a share. Now revenue at 391 million, that does represent a decrease by 3 year over year. It also missed expectations. Another metric in looking at Online Travel players is average monthly unique visitors reaching 350 million in the section for trip adviser. Stock is down about 8 here. I also want it mention kelly you might remember from Stone Capital this is one of the long ideas presented at trip adviser by nick danaher of capital management. Exactly. I was going to bring that up. Funny because part of what his case was is the book it now feature on trip adviser but the numbers you just mentioned didnt seem to show they got any influx from that. If you look at stock, trip has been under pressure down about 19 year to date. Now down about 8 on this miss. Thank you, seema. Oil rally meantime a little bit today after settling below 40 a barrel yesterday. This could be bullish news for commodity. Hey, kelly. Thats right. Just today bill gross said he likes it and there could be another reason to be excited about this medal. Put simply, after oil drops, gold tends to pop. Now this is the view, we look at what happens one month after oil breaks the key 40 a barrel threshold and that has only happened 10 times in the last decade. But when it does happen, gold has been a big winner one month later while stocks have lagged. Seems a drop in crude sparks a risk off mentality and sparks a bid for safe havens. Look at both records. Both assets records over this period. On average the s p 500 has fallen more than 4 after crude breaks 40. Price of gold on the other hand is up 2 on average in the past. Now the biggest and most reliable gains may be seen in gold atfs and select minors. Gdx positive 80 of the time and returned 5 on average and just a month after crude falls below 40 bucks. Another good historical trade in the scenario has been another less expensive precious medal, silver. And also look at the silver etfs have also been a very good and reliable bet. Both safe havens have been on a tear this year. But if history is any guide, crudes fall below that 40 a barrel level. Could give gold and silver bugs more ammunition. Now back to you. Thank you. What do you think is the link between gold and oil, at least lately . Yeah. Lately is exactly the question. I mean, we basically have scent link run through the credit markets. So when oil goes down, thats the delinquent stocks. When it comes to gold, currency should be a link. And seemingly run in the same direction and l 08 experience, does perhaps skew things because of course gold had massive rally. As we get closer to november, thats where you could end up seeing a different catalyst, not just oil. But if you see polls getting very close as we go into november, then i think you maybe get a little more volatility and more panic. You know i always call out the preppers portfolio which is gold, guns and campbells soup. I that i is something we could look for depending on how. And closer to november i think that could be a huge factor. And both have Central Banks trying to ramp up gold market. But we have our next correlation for deidre in the meantime. Now time for the update with sharon epperson. The taj mahals casino owner plans to shut doors for good after labor day. Falling victim to the ongoing casino strieblg strike. The move will cost about 3,000 workers their jobs. That adds to the 8,000 who already lost jobs when four Atlantic City casinos closed in 2014. The first human Clinical Trials for a zika vaccine have been done. And reportedly receiving injections yesterday. This first phase includes 80 people. Government Scientists Say if the data is promising, phase 2 trials could begin next year. The socalled security researchers are back. Remotely hacking into jeeps last year close to a million and half jeebs were recalled after the duo were able to ablg says the breaks and transmission after moving ep. This time they were able to turn on the parking brake and hijack the vehicles auto parking system. 2014 jeep did not have the updated Software Patch issued by by a break highly unlikely. For the smash hit play in london harry potter and the cursed child, the production is offered in two parts, one at the matinee and one in the evening. Scholastic said it sold more than 2 million copies in the printed script in north america in just two days. That is cnbcs news update at this hour. Back to you, kelly. Reviews have been mixed. But what whatever it takes. Thank you, sharon. Sure. Continuing a string of quarterly losses. Two analysts break down quarterly numbers including the reading on the stock. Plus, the white house embroiled in a new controversy over that literal plane load of cash delivered to iran. More later on the closing bell. We snapped a sevenday losing streak. S p up 6 to 2163 and nasdaq was about. 4 , 22 point there checking on names moving after hours. Another by wrath of earnings already. Square up 9 . Trip adviser down 6 . Tesla up about 1 . 21th century fox up. But tesla appears to hang on to a gain of about 1 . Joining us from u. S. Capital iq with rating on tesla and carl brauer from kelly blue book, thanks for joining us. All right, investors seem not tooterly concerned but tesla did report a big miss just now. What do you make of it . Yes, they did make a big miss. Even though we knew coming in they wouldnt have delivery targets met, their losses were wider and the revenues were less than the s p capital iq consensus. You know, basically what you end up having with these earnings is the bulls will look at positives and bears will look at negatives or at least the valuation and which is why we are pretty flat stock which is unusual for tesla. Right. We are used to it swinging around, carl. Why do you think the people arent too terribly concerned by numbers on the surface at least . I think there are things on the horizon that people feel have a lot of upside and whether it is the model 3 orders he has banked or the potential for saving money by joining with solar city. These are ways to look at it in a positive outlook for teslas near term future. In terms of the elan musk premium as they call it, how long do they give him pass and say he is a visionary and he will work it out . Certainly with someone like jeff bezos, we have seen amazon get a pass for decades and decade. Do you think eman musk gets the same pass from the market over long periods of time or at some point does that peter out . Yeah. I think we have already seen a move. I think we have seen a move to less if not a free pass, a Bargain Basement pass for a while. And i dont think he is getting quite that level of a lack of scrutiny. I think people are drilling down into the facts more. And arent listening quite as much to the rosy future he paints. So we are going to need to see some hard numbers that start to make sense for him or i think you know the stocks will struggle that much more going forward. And to that point, a lot of folks even on the bullish side have said that this is really hinging on lets say production in the year 2020. There is always this distant number where people were basically saying thats where my cash flow model is headed. This is why i think the model can work. Does that still is that still the moment of truth . Or are we going to have something prove out before that . Thats the moment of truth if you are on the bull case as you just said. You are paying a lot up front and you have been paying that for years for potential in the future. But with the various initiatives going on, it seems like who knows when the company will eventually be profitable. If they are going into buy an unprofitable moneylosing solar city, going to have investments of billions of dollars in his new master plan, you will need more cash. Which is not good for existing shareholders. I know. We will see again, at what point that becomes more after concern at the top of their mind. Call is interesting, guys. Thank you for joining us. And s p capital iq and karl bauer from kelley blue book. Earnings beating expectations, 87 cents adjusted versus expectation of 54 cents sales topping Analyst Consensus at 934 million. It did lower its full year guidance on a gap bases. Something to keep in mind, however does see 2016 shipments between 2. 9 to 3 giga watts. I want to point out quarterly profit did drop due to a restru restructuring charge. It hasnt been a very positive year and stocks down about 24 in 2016, kelly. Yeah. Thank you, seema. Still an interesting contrast with solar city or speaks to if there is a war going on for the share in the solar space, you know. There is people who are going to turn in a better quarter and otheres who are struggling. Different Business Models but certainly serving a similar clientele and tremendous number of private smaller players because of the subsidies. They are easy to find. By no means is this a vindication of different approaches . I dont know if it is final vindication. I think what you are seeing here, this is not going to eradicate the skepticism. I think today is the earnings parade of crowded short stocks. Between tesla and square. So you have a little bit of suspense if youre a short seller tonight. Carol . Anything to add on the prospects here . I mean, i think that this, i agree with mike in terms of vindication of the Business Model. If you think about the combination with tesla, youre going to take solar city Business Model and change it up anyway. I think any comparison that you might draw there is sort of null in void. By that acquisition. But it goes back to how do you value tesla and we said it was really never a car Company Valuation, a tech Company Valuation and now if you throw the solar in the mix and say were changing strategy, it really becomes an energy or commodity valuation, which obviously would not be a positive thing for tesla shareholders. So it is not youre not betting the company on it but it does complicate it in a way that basically everyone is critical. Taking the return on capital down from maybe high doubledigit levels to reporting a lot of losses. Can which never gives you a premium multiple in the market. Obama administration sending 400 million worth of cash to iran. Part of a settlement over a failed arms deal. The timing of that delivery is raising eyebrowes. And moving from the studio to the small screen, talking about competition between too apple music. And how he watches for his next hiphop star. Youre watch cnbc, first in business worldwide. Come to the lexus golden opportunity sales event this is the pursuit of perfection. Welcome back. Earnings call for 21st century fox is under way. Julia boorstin has headlines for us. Julia . Thats right. Foxs executive chairman kicking off the call by addressing the elephant in the room roger ailes departure as ceo of fox news representing 20 of the companys revenue. Take a listen. Two weeks ago we received and accepted roger ailes resignation as ceo of the business and took up the responsibility of leading fox news as chairman and acting ceo. Throughout this process we have moved quickly and decisively to protect the business, to protect its employees, and to protect the unique and important voice fox news broadcasts. Murdoch saying they managed succession at the top of the company as well as divisions. Only about year ago that lachlan and his brothers james took over to replace Rupert Murdoch and went to digital distribution welcoming time warner as an investor in hulu and says fox is including couldnt tent in all skinny bundles and the company is well positioned to take advantage of these new technologyes. Kelly . Thank you, julia. We continue to monitor it. Obama administration sending 400 million of cash to iran in january. First installment in nearly 2 billion settlement and coincides with another high profile dispute between the u. S. And iran. Eamon javers has more for us now. It has been waking waves in washington throughout the afternoon. Here is what the journal reported this morning. It said that United States shipped 400 million in physical cash to iran back in january. And this shipment of money coincided with the release of four americans who had been held in iran. Shipment was on palettes, wooden palettes of physical cash. Youre yoes, swiss franks and other currency delivered because it would be illegal it make the transition in dollars. The white house says the cash is the first part of 1. 7 billion settlement of a 1979 claim that the iranian government had for money held inside the United States. And white house spokesman josh earnest said there was no quid pro quo between the payment of the cash and the release of the americans. We have not, we will not, pay ransom to secure release of u. S. Citizens. Thats a fact. That is our policy and is one we have followed. Now House Speaker paul ryan disagreeing saying this supports our long standing suspicious that the administration paid ransom in exchange for americans unjustly detained in iran. He said this is the ongoing saga to mislead the American People for a nuclear deal. The white house though kelly point out that they announced months ago that they were going to make this 1. 7 billion payment to iranians as part of settlement of that previous claim. That claim was an arms payment that prerevolutionary iranian government had made to the United States then when the revolution happened that money was stranded in the out. Iranians wanted that money back and United States agreed to send it all back. So this is the first installment the government says of that payment. Yeah, u. S. Apparently felt like they would lose in International Court and said we might have to pay more if you include interest so we paid this amount. But more importantly, it comes down to ransom and the way this is pitch aid apparently to the iranian people is hey we shook down the u. S. Right. And look, theres dramatic detail here of just how this money was shipped. Unmarked plane. Shipped in cash. Had to be done through Central Banks elsewhere in the world. Not through the u. S. Because there is no banking relationship between the United States and iran you have a forklift getting money off of plane and delivering it to iranians. Thats what is raising eyebrows. The unusual nature of the way things were done. And prisoner exchange. Certainly not a pretty picture. Thank you. You bet. Aeamon javers, from washington. Germane dupri distells us how he discovers new talent. And phil night tonight with cramer on mad money. Music producer germane dupree has a new show called the rap game and hes searching for top talent. I sat down with him to talk about what has changed in the music industry. Before you usually had to have somebody come and tell you, hey, i found an artist. Now theyre all over the place. And now that i have a show, theyre everywhere i turn. And youre looking for people who seem to be going above and beyond. They didnt put up alternates video, but really working at it. In that sense, maybe nothing has really changed. Its really just a different outlet. You put bowwow out this internet, he would have done 100 million at the box office, something crazy, but its just a new outlet, and a new channel to get to know the arrist. Im thinking abouted different places that people are listening you had kanye saying that apple needs to by jayzs title and who plays musicians better. Do you have a preference . Do you have any problems with the way people are being paid for producing music . Of course. Kanye is right, you know, choosing between one or the other is driving people crazy, you know, if somebody has an exclusive, and then you cant get it on apple. It does separate the music in a way that has never been. Who do you think is doing it right . Who is offer the best compensation in i realize i think they both have incredible options for people. I think the exclusives that title has, and me and jayz are good friends, but the exclusives that he has on title made me being a title member just because i wanted to see hi show, hear a new record. I think all of that is something that service that definitely should offer. Apple has the same thing with radio stations, and when drake is paying a new record, pharrell, they all have their differences. What about youtube, where taylor swift youtube i think youtube is a platform for you to see and find things, which i feel like is a good thing, because every time somebody is looking for something, they always go to youtube. Its there for you to find it. Its not really an outlet, i dont see it as a place to make a lot of money for artists. It raises another question we love to ask people, which is looking back, what is the biggest money mistake that you think you have made . Ive been watching billions recently, and watching from the way guys deal with situation on wall street compared to how i deal with, i would say getting into an argument with someone and and not fixing the problem through the argument is probably my biggest mistake. Thats deep. They cuss each other out, but they make the business happen. It gets resolved. It does on tv, anyway. What do you think . I thought that was an amount of selfawareness, that maybe thats a weakness in his game. Germ main dupri has had but maybe he was more focused on the Creative Process and Business Opportunities might have been missed. One, hes clearly team kanye. The second is the entrepreneurial spirit that embodies people today that hash enabled by technology. He says back in the 80s nobody was showing up. You still could have gotten to the record gotten and sat outside. I think today kids have such unbridled confidence, theyll talk to anyone. They just keach going after what they want. I think thats positive in terms of the optimism. It seems to have made is seem much more possible to put yourself in front of these people and get somewhere do it. Were minutes away from teslas and squares Conference Calls. What to listen for, when we come back. N, your japanese is very good. Thank you. speaking japanese exactly. I can understand nuance, context and idiom in seven languages to help companies all over the world with everything from retail solutions, to banking, to cyber security. speaking japanese got a quarter . Kell one back, an earning, a ton of different names. Some of the biggers movers is square, which is about to kick off the Conference Call, and tesla, we have about half an hour still for that one im interested to see if square holds on to the days. Not just as the call goes on, but over the next couple training days. Does that change Investor Sentiment . As they started the call. Yeah, that call is under way. Notably they did refer to the departure, saying they were going to try to preserve what keeps that channel unique. Outlook for affiliate fees, of course they had the big tv station group. What are the technicalities of that . And is he able to go somewhere else . I think that changes the game a lot. The jobs report friday morning, that would be one to watch for, as we turn to thursday to close out this week. That does it for us on closing bell. Fast money begins now. And the latest on 21st century fox, plus bill gross set to sell bonds again, but history says he could be the ultimate contrarian, and the zika effect on stocks, with you strategist says it had be worse than you think. The stock is trading to the down side. That move could get much more ag