The fed, maria. He didnt indicate theres a compromise coming in the fall on the budget. Two big things. He listened to the squawking from the u. S. Allies and Many Democrats over government eavesdropping. The other thing that stood out to me was how passionate he was about his Health Reform bill. Anybody who thinks obamacare may not start on october 1, i think, is mistaken. Okay. Amy walter, the political report, your thoughts . I think one of the big takeaways is going to be on healthcare. Look, where democrats really struggled in 2010 and quite frankly in 2012 is they were on defense. They were on their heels when it came to defending the law. Where the president has gone, though, he tried to talk a little about policy, but where he spent a lot of his time was on attacking republicans. It does seem like were going to be back where we were in 2010 with both sides now instead of just the republicans both sides now demagoguing the other. The president at one point saying basically republicans, they dont like obamacare, because they dont want people to get healthcare. Right. Ben white, isnt that really one of the main issues there, the fact that the two sides are readying to fight once again over the debt ceiling, and thats going to blow up, no doubt, in the next two months or so. Was this press conference basically leading up to what is bound to happen as amy just analyzed . I dont know if its bound to happen. President obama was clearly saying before he goes on vacation hes not in the mood to make any deals with the republicans this fall, certainly not where obamacare is concerned. I dont think hes really eager to make any deals on any new spending cuts. Hes telling republicans, look, raise the debt ceiling, no strings attached, cant be stupid and shut the government down and hurt the economy. On the fed, i thought it was interesting, he didnt make a lot of news there, but he had the opportunity to back off a little bit on the idea that Larry Summers is the leading candidate. He didnt do that. He didnt say, no, he isnt my leading candidate. He said i would defend anybody in my administration getting attacked. He could have backed off a little bit before he referred to mr. Yellen instead of ms. Yellen, before he got that wrong. He did list other names, broadened out the field. He said there are other names as well. Yeah, he did say there are other names as well. I didnt hear him actually mention any no, he didnt mention them. So its really down to those two. Could a third candidate come in late . Its possible. I think now its Larry Summers or janet yellen and will make the call while hes on the beach in marthas vineyard. Amy, whats your take in terms of that horse race for the fed chairman . It was interesting and theres been some remarking if you read twitter that the president chose to compare Larry Summers his personal defense of Larry Summers with the defense of susan rice. We know he put up a defense of susan rice and ultimately chose not to nominate her. I dont know if that was the best analogy to make here if youre Larry Summers and said, boy, the last time he went out and went to bat, she ended up getting the second job she wanted not the first. Yeah, interesting. Lets get to eamon who was in the room during that press conference. Eamon, what can you tell us . Reporter hi, maria, you heard the president talking today on a wide range of subjects. And this underscores for me the vastness of the presidency. Hes talking about everything from healthcare to drone strikes in yemen, the intelligence policy and, of course, the discussion youre talking about on what hes going to do in terms of the next chairman of the fed. Obviously, a wideranging discussion. The president is starting off, though, by saying he will announce some reforms here to the way the United StatesIntelligence Community conducts surveillance overseas and on the internet. Now, thats going to raise a question of a question that he did face here in the room about whether or not Edward Snowden is, in fact, a patriot for revealing some of the questions that hes now addressing with reforms. If the president is feeling like he has to reform the Intelligence Community as a result of these disclosures, why is it wrong that Edward Snowden made the disclosures in the first place . Thats a question you can expect the white house will hear in the days and weeks to come sfarlt of these as a result of the disclosures today about reforms that the president wants to make. Now, already, weve gotten some reaction from republicans up on capitol hill who said, hey, look, we dont want the president to do anything to the intelligence apparatus. We want him to defend the programs that exist, and we want him to keep them in place because theyre protecting american lives. So very controversial what the president is doing here. And obviously, a whole range of topics that the president discussed today. Yeah, interesting there. Its true, we will keep watching that and certainly there is more to come. Thanks, everybody. We appreciate that. Well keep watching the developments post the president s press conference. Meanwhile, the other soap opera talked about all day, jcpenney has taken odd turns today. A real war of words between activist investor and Hedge Fund Manager bill ackman and jcpenney. At the heart of this is ackmans desire to oust the ceo, jcpenney ceo, mike aldman, who has been on the job for only four months. Joining me is the chief executive officer of starbucks, and we have Howard Schulz to weigh in on this. Thank you very much for calling in. You know the story. You know the attacks on from bill ackman on mike allman. Whats your stance . Well, maria, let me give you some background sos there no misunderstanding. Im not a shareholder of jcpenney. I have never met bill ackman. But what i think we all witnessed over the last 24 hours is such a predictable act, something so irresponsible that a board member of an existing Public Company would release and leak an email without sharing it with the board or the ceo is beyond comprehension. But the story is worse than that. Heres the situation, and this is the truth. This is not fiction. Bill ackman was the primary engineer and architect of recruiting ron johnson to the company, and he and ron johnson strategy that strapped the company and ruined the lives of thousands of jcpenney employees and fractured shareholder value. [ audio difficulty ] came back to save the company, worked tirelessly, and given the time and the support from the board, im very confident he will do just that. And theres one other thing. Bill ackman released an email today that said that mike ullman is not communicating with him or the board. When mike decided to come back, i shared with him verbatim all of the things that i did during the transformation of starbucks, and he has used many of those communication tactics, including emails and communicating to the board weekly as well as the employees. So this is a tragic example of an irresponsible, despicable act. And its not its not about mike ullman for me. Its about Financial Engineering for their own benefit, and as a result of that, fracture the goodwill, shareholder value, and the lives of hardworking people. This is a tragic situation, and i just felt i couldnt sit by and watch it when i know mike ullman is a worldclass ceo and a fantastic leader. Yeah. You make a good point, howard. Particularly, you know this sort of timeline and story line well. You also left starbucks, came back to starbucks, and then oversaw a Real Recovery and arguably really Phenomenal Growth story, transformation growth story. And ullman left, came back. But ive got to push back on the performance, howard. You know, in one month, jcpenney is down 24 . Year to date, the stock is down 34 . One year, down 41 . A fiveyear timeframe, down 64 . Now, yes, ullman stepped in to what could have been a sinking ship or a very tough situation, but under his leadership, its down 16. 5 . And i recognize thats only since april so its a hard argument lets not forget that was a year and a half during the worst financial crisis where every retailer and Consumer Brand was under significant pressure. You know, one of the issues here is it doesnt really do anything for confidence, to see the backandforth drama going on. Thats another issue. Were going were going to take a short break and try to get howard back, because clearly hes on a cell phone, and he was going in and out there. He will hopefully come back in a few minutes. Well take a short break and then get into the Market Action and whats to come next week. We had a pretty good selloff at the end of the day, down 72 points on the dow. Well be back after this short break. Stay with us. 7 years of music is being streamed. Its been that way since the day you met. But your erectile dysfunction it could be a question of blood flow. Cialis tadalafil for daily use helps you be Ready Anytime the moments right. You can be more confident in your ability to be ready. And the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph like needing to go frequently or urgently. Tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. Do not take cialis if you take nitrates for chest pain, as this may cause an unsafe drop in blood pressure. Do not drink alcohol in excess with cialis. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, seek immediate medical help for an erection lasting more than 4 hours. If you have any sudden decrease or loss in hearing or vision, or if you have any allergic reactions such as rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a 30tablet free trial. Welcome back. Were covering the public drama and fight debate going on around jcpenney, once again joining me back on the telephone is howard shulz, the ceo of starbucks. He wants to weigh in on this story because, of course, mr. Ullman, who ackman is trying to push off of the ceo role of jcpenney, ullman is on the board of starbucks. Back with us once again is howard. Howard, you were going in and out now. Can you hear me now . Im sorry. Yeah, what i was trying to say thanks very much. Okay. What i was trying to say, maria, is that mike ullman came back really to try to save the company, and whats so perverse here is hes trying to save the company that bill ackman has basically done Severe Damage to. And for ackman to do what hes done the last 24 hours is not only irresponsible, but its destructive behavior. And if i was sitting on that board, i would be asking for bill ackmans removal. Now, what what is most upsetting here . Youve called bill ackman a destroyer of companies. But when you look at the performance of jcpenney, howard, it is very dismal. Over fiveyear period, oneyear period, even under ullman, which is only a few months, i recognize. Well, what i was saying before was that when the two years that i think youre referring to was during the cataclysmic financial crisis and during the recession where every retailer and every Consumer Brand was under pressure. I have watched mike ullman very closely, and he is the kind of leader that will rebuild the trust and confidence with the employees, bring the customers back, if the board and shareholder gives him time, he will turn things around. And im very confident in that. Ive seen him firsthand. Theres no better person to run jcpenney than mike ullman. What kind of accountability do you think bill ackman should be having given the fact that he was there under ron johnson, ron johnson yeah. Of course, pushed out. Talk to us about what youd like to see in terms of accountability on bill ackmans part. Well, you know, as i said, im not a shareholder. Im not on that board. But if i was a board member of that company, a board can only exist with people who have likeminded values and theres trust and confidence in one another. Bill ackman over the last 48 hours has fractured the trust within that board. And id be asking very serious questions about whether or not he should maintain his fiduciary responsibility of being being on that board given what hes done the last 48 hours. So youd like to see ackman get pushed out himself . I dont believe that you can have a board of directors in which there is a rogue boardman doing things like this, destructive to the company, the employees and the shareholders. What is most destructive . The uncertainty surrounding it or just the public upset no. Whereas theyre taking the fight in the publics face . Well, i have never seen in my over 20 years of being a ceo of a public of my company or any other company that i am aware of where a board member would leak an email to the press, not share it with the board, not share it with the ceo, and do the things hes done for his selfinterests. And the irony here is that bill ackman has the blood on his hands for being the architect and the recruiter of ron john n johnson, and then the coauthor of the strategy. This thing is beyond comprehension. Hes blaming mike ullman for what he himself is responsible for. So what should be the accountability . What is the solution, then, just getting bill ackman off the board . He still owns the stock, though, howard. Well, theres a lot of shareholders who own a lot of stock that are not members of a board and do not have destructive behavior. And im just im saying an an outsider who knows this kind of business, who understands what it means to rebuild and reinstill confidence and trust with employees and customers that mike ullman is up to this job and is the best qualified person to turn jcpenney around. And if the board and the shareholders give him the chance, he will do just that. Now, there is there is another, i guess, hedge fund out today, perry capital, that owns about 7. 25 of jcpenney. Theyre backing ackman and theyre basically saying well the Market Reaction is alarming given the companys meaningful improvement in liquidity. However, we would be supportive of the return to the company by allen questrum, the former ceo. Well, i think these people are round and theyre not sitting in the seats every single day and understand what it means to run this kind of company. Im just telling you. Ive seen mike ullman side by side for ten years. Hes a worldclass ceo, a worldclass leader, and he can turn this thing around. And final question here, howard, in terms of this activism that were seeing and were seeing a lot of it lately has this become harmful to shareholders at this point . Well, i think its you know, youve got to look specifically on to what company were referring to. But clearly, i think the level of activism this kind of situation in which an activist shareholder is doing things that are not in the companys best interests and the shareholders best interests, but in the individual hedge funds best interests, is inconsistent with building longterm value, and it just you know, i looked at the situation over the last couple of days, and i was just disgusted by the behavior. I really was. Howard, thank you so much for speaking out. Thank you. The viewership, the Investment Community really needs to hear that. We appreciate your time. Howard shulz, chairman and ceo of starbuck, chairman of the board of which mike ullman sits, ullman is a member of the board, and is topic du jour for bill ackman, pushing him out. And the dow snapping a sixweek winning streak. Bob, what happened today . First off, high drama there. I was riveted. People were watching it down here, maria. Look at the dow. We had a similar pattern to yesterday where we dropped immediately right at the open, and then tried to make a recovery in the middle of the day. The difference here, the dow didnt get into positive territory. Just sort of quietly petered out towards the end of the day. Let me show you where we are in the stock market. A couple of comes. First, the japan and u. S. Seem stretched. Most traders dont want to make conclusions based on the thin volume that weve seen. But for the moment, it looks a little stretched. Big story in the week, china is improving. Economic data better across the board. Europe in the sweet spot. Its cheaper, its bottomed out, an its been outperforming. How about whats going on with Home Building stocks . This group has now officially fallen apart. Look at this week. Big numbers to the downside. Some of them were on the upside here. I think whats going on here right now is the s p 500 is up big time for the year and Home Building stocks are no longer in favor. Theyre only up about 2 , if you look at the s p 500 versus the major group for the year. I think the big concern higher Mortgage Rates and concerns that theres waning Government Support for housing, including the winding down of fannie and freddie mac. Those are the issues weighing on them. Overall today, the big story, the ipos. Six ipos today, maria, including software in the cloud company, cvent. Still at 32 and mix tel, software in the cloud, Fleet Management software, priced 16, the high end of the 14 to 16 range, you see it closed well above that. For the week, take a look at the marks here, the dow transports the big losers, as you can see, down 2. 6 . Maria, next week, a lot of global gdp data. Well get german. Well get france. Well get hong kong. Well get a lot more information where the Global Economy is at. Thats what well be focused on. Ooh, i like that, bob. That will be great. Reporter have a good weekend. You, too, bob. Have a good one. Lets drive down this road further and wrap up the week for the stocks. Stephanie link with me from the street, daniel and mark. Good to see everybody. Thank you very much for joining us. So next week we get another window into global gdp. I find it interesting that people have been nibbling on europe. Youve been buying europe. Weve been buying europe. We own japan. And i actually think the data from this week from china was encouraging. I know the bears will talk about not really believing the data. But youre getting a lot of incremental better pieces of news in china in terms of Industrial Production, fixed investment, in terms of trade data. So i think that actually is showing a stabilization, and, yeah, europe actually is seeing a lot better results. And theyre kind of coming out of it. So i think that was the big news for me this week, is that youve seen the shift towards more international news. Of course, it was very light this week for u. S. Economic data. So well see next week what we learn. But i think that was the real incrementally new news and thats where were shifting our money. Okay. So you would be buying europe. Yeah. You are buying. You would be buying japan. Emerging markets is the one standout. You want to buy emerging markets yet . Well buy u. S. Companies that have exposure to emerging markets. Okay. All right. Thats kind of the safer way to play it in my view at this point. Yeah. Across the board, the industrials, the mining stocks, those stocks actually did very well this week and thats where well continue to put money. David, the market is up about 20 year to date. You want to put new money to work here . Maria, any selloff here with this light volume, use it as an opportunity to be opportunistic and buy stocks. Okay. Big month, september, as you know, september 17th and 18th, the twoday fed meeting. September the 22nd, maria, is the big election in germany. We expect chancellor to be reelected. We agree with stephanie link that europe is showing good signs here. Gdp numbers, Industrial Production numbers, Consumer Confidence numbers, Business Confidence numbers. You want to basically start thinking about adding to europe. In advance of the september 22nd election. September 9th is the gdp for the second quarter. The fiscal year over in japan. That will tell Prime Minister abe whether or not to put that tax on we talked about the National Sales tax. We hope he does not. And finally, the debt and debt ceiling debate, that will be another big item for september. Finally, maria, next week president enrique pinyetto of mexico is supposed to bring to senate the idea of opening up the Energy Industry to the senate, so keep an eye on that within the emerging markets. China is looking better, too, which stephanie link has said twice today i heard her at lunch and i heard her just now. Yeah, good stuff. Mark harris, i guess its good to be looking at the world again, and hopefully, finding some growth as opposed to, you know, the rest of the world sort of falling apart in some corners. This is good news, right . Yeah, absolutely. No, it is good news. Look, i agree with the gentleman talking about the idea of the debt issue. We have an issue on september 12th. I do worry about that. It will cause disruption in the markets. Remember, if we go into default, look at september look at 2011 and what happened there when the repos were rolling over and we thought wed have defaults. There could be some problems. Yeah, great growth names. There always are, even in volatile markets where you have headwinds ahead. We like yeah. Any number of names. Turnx, small midcap, a storied stock, and thats the theme here, story stocks. Look at pcyc, a name in the biotech space, a cancer drug in the pipeline that is pretty compelling. Even smallcap name ike astx. So a bunch of those that are good looking even in this market. Biotechs have done well. You want to put new money in biotechs even after the run weve seen . Absolutely. There are few places honestly that have the kind of compelling growth we have in biotech. The pipelines are full. A lot of the companies are doing great stuff. Theyre compelling. The success rates are looking good. As with biotech always, you have be selective and thoughtful, but with pcyc, it has clear catalysts ahead, clear support, institutions think its the right name, pretty far along in the pipeline, phase three, and the drug is compelling. Ash is the next headline well get. All right. Bullishness at this table. Youre bullish. Youre buying on dips. Yes, maria. Youre buying now. Im buying some now. Vgk, dxj. But the earnings season gave us opportunities. When some of the highquality blue chip names, multinational names, fell on the news or are down from when they reported great numbers for example, h queer looking to buy quality names, and where theres great momentum, an aig kind of thing, those are names we would be buying, too. All right. Pfizer and johnson, and buy some apple. That stock is really been recovering well here. You always get the last word. And finally, maria, i hope my kids heard me referred to as the gentleman. I really i am glad to have been remembered by mark as the gentleman just now. You are a gentleman. You are totally a gentleman. Good to see you. Have a great weekend, everybody. Thank you. Thank you so much. Up next, well hear from somebody who says the s. E. C. Is making a big mistake to get jpmorgan to admit to wrongdoing in the case of the london well trading laws, and priceline rollying closer to 1,000 a share, prompting spokesperson William Shatner to lament today that he sold most of his stock. Aww coming up, well hear from somebody who says the stock still looks cheap. The trade later on closing bell. Before their gift helped preserve the point. Before a credit solution was used to expand their business. Before trusts were created for their grandkids educations. They chose a partner to help manage their wealth. One whose insights, solutions, and approach have been relied on for over 200 years. Thats the value of trusted connections. Thats u. S. Trust. So you want to drive more safely . Of smart. Stop eating. Take deep breaths. Avoid bad weather. [ whispers ] get eight hours. [ shouts over music ] turn it down and, of course, talk to farmers. Hi. Hi. We are farmers bum pa dum, bum bum bum bum [ kitt ] you know whats impressive . A talking car. But ill tell you what impresses me. A talking train. This ge locomotive can tell you exactly where it is, what its carrying, while using less fuel. Delivering whatever the world needs, when it needs it. After all, whats the point of talking if you dont have something important to say . Time to have new experiences with a familiar keyboard. To update our status without opening an app. To have all our messages in one place. To browse. And share. Faster than ever. Its time to do everything better than before. The new blackberry q10. Its time. Welcome back. The bulls took a break as the dows sixweek winning streak came to an end. It was also the worst week for the major averages in seven weeks. Josh lipton is breaking down the big movers. Reporter the week is over, so lets highlight some of the movers in todays session. Well start with blackberry, moving sharply higher. Reports that the smartphone maker is looking to the possibility of going private. Shares, of course, have dropped some 36 in the last three months. That amid increasing competition from apple and samsung. Another name on our radar, priceline. The travel website reporting earnings that beat expectations. Also posted a strong outlook. The stock moving toward that 1,000 mark. At least, nine brokerages lifting their price targets on the company. James river cole also well in the green, reporting a smaller than expected loss of 1. 04 per share, versus the average analyst estimate of 1. 33. The stock up today, though still down 30 this year. On the downside, navidia slipping. The revenue basically in line at 977 million but guides for Current Quarter revenue below the streets forecast. Well end on jcpenney, our own scott wapner breaking more news on that name. Bill ackman, activist investor, jcpenney independent director, now demanding that the companys board meet as soon as possible and that chairman tom be replaced. Jcpenney stock, by the way, falling hard, hitting lows last seen more than 12 years ago. Maria, back to you. All right, thank you so much. We just heard from Howard Schultz weighing in to support mike ullman. Mike ullman sits on the starbucks board. You heard howard a few moments ago saying that he is an esteemed leader, really backing him and supporting him in the face of ackmans calls for him to resign. The s. E. C. , meanwhile, wants jpmorgan to admit wrongdoing in any settlement related to last years 6 billion london whale trading losses. Jackie deangelis has the story. Reporter jpmorgan has been vocal about its wish to move past the 6 billion lost in connection with the trade. Now, in addition to wrongdoing, it might be what it takes to satisfy the regulators. The s. E. C. Wants any settlement to include an admission that jpmorgan failed 20 adequately supervise members, but the source says it would not include charges against individuals, including the key trader. An agreement could come as early as the fall. The s. E. C. Chair Mary Jo White has said recently she saw a need for greater accountability in certain cases, but not all. By law, white has to recuse herself from any matters to do with jpmorgan for a year from taking the job. So the decision to make jpmorgan an example, that was made by someone lower down in the s. E. C. Hierarchy. Jpmorgan ceo jamie diamond has admitted his firm had a brakedown in supervision and risk controls but hes denied allegations of fraud. Attorney tom kern says that admitting to failure of supervision in a legal settlement is a different matter from doing so in a Senate Testimony and could set jpmorgan up as a target for other civil suits. Now, separately, the fbi and the u. S. Attorneys, they are looking into fraud charges against individual traders for lying about the value of the investments. Maria . All right, thank you so much. I spoke to s. E. C. Chairman Mary Jo White on this issue, and an admission of wrongdoing in settlements. We spoke here last month on closing bell. Listen to what she had to say. The noadmit, nodeny policy used by lots of civil agencies, including the s. E. C. , have yielded Great Results for investors. In most cases, will still be resome offed that way and should be. I did think there was a need for greater accountability in some cases. And so, the focus is on those cases where i think admissions are necessary to have that public accountability where the frauds are particularly egregious, the harm is particularly widespread, and the focus isnt on what the consequences then of those admissions may be in other proceedings. So is the jm morgan the right case for the s. E. C. To be making this case . Mark is with me. He said the s. E. C. Is being ridiculous, but andrew is behind Mary Jo White all the way. Gentlemen, good to have you on the program. Thank you very much. Its interesting, mark, she said if its egregious enough, you know, if theres widespread fraud. When you look at the london whale, you think of stupidity. You think of a trading mistake with their own money, but fraud . Right. An thats whats troubling. Yeah. And i think the point im trying to make here is that the s. E. C. Should be looking to punish more of the bad actors and not just the corporate entities, because the end of the day, its the shareholders that will suffer the pain of a multimilliondollar or 100 million fine in this case. And was just very important to point out, in a situation like this where they are going to require, as is the new policy, an admission of liability, that is going to open the floodgates potentially to civil litigation on this very matter that would not have otherwise occurred had this new policy not been enforced. Thats absolutely right. Thats probably the most important point here, andrew, because once jpmorgan says, yes, we admit wrongdoing in the london whale trading case, that opens the floodgates in terms of further lawsuits. Why would they do that when we all know this was a stupid mistake, but it wasnt necessarily and we know it was not fraud. Why would they admit wrongdoing . Why are you so in favor of this . Look, maria, the employees are the corporation. And im sorry if the corporation is going to have to spend money with respect to civil lawsuits, but you lost 6 billion of shareholder money. And, yes, its unfortunate that you may have to admit to liability, but guess what . This is the s. E. C. s new policy. And it jpmorgan doesnt like it, then go to trial on it. But i guarantee you theyre not going to do that, because they know they screwed up. They had lax supervision. The supervisors werent paying attention. And when that happens and you lose 6 billion of shareholder money, youve got to pay. One of the ways you now pay is through an admission of guilt. The problem i have with that, though, andrew, is how can we be concerned about the loss of the shareholder money on the prop trade but not on the loss of the shareholder money thats going to result from the fines and the tens of millions of dollars of legal fees that the firm is going to have to spend . What im saying here is, lets go after the actors. Where is the individual liability . Thats what main streets looking for. We havent had that. Look, can you do both. You can go after the traders but you can also go after the firm and make them pay the fine. And guess what . If you do that, and if you make the firm have to pay it, then that will hopefully have a prophylactic deterrent impact going forward. Its just sound policy to not let firms and banks hide behind the legal charade of, gee, were going to pay all this money, but we didnt do anything wrong. Of course, you did something wrong. Thats why youre paying the money, and i think its a good policy. Im ecstatic to see finally the s. E. C. Is making this common sense evaluation and making firms admit to guilt. But even if even with the 6 billion trading loss, jpmorgan had a record year. They had a record quarter. Theyre making money for the shareholders. The stock is up. Maria, who cares . What do you mean, who cares . Youre talking about the shareholder impact. So am i. Shareholders care. But if you also lost 6 billion, the simple fact that you also made the Company Money in other divisions it doesnt mean we can just say, hey, fine, the companys profitable, lets sweep this under the rug. Thats 6 billion of shareholder money you lost because you had shoddy, bad internal controls and thats problematic. You know how investing works. If you make a trade, you could win or you could lose. Yeah. And you have proprietary trading. Maria, this is different. Why is this different . Its different, because this trade went under the radar. The size of it went under the radar. The supervisors didnt know it was taking place, and then when it finally comes out, we get the old, gee, its just a tempest and a teapot. Guess what . Its not. Its serious conduct. There have been Brokerage Firms that have suffered catastrophically big losses because of supervision and Compliance Department wasnt paying attention. Thats the problem i have. Let me be clear on one thing where i do agree with andrew. Failure to supervise and supervisory procedures on the street need to be enforced, no question. What i think is glaring here is that we are not seeing individual accountability. What we are seeing is further pain imposed on the shareholders and on the markets. What we are seeing is a continued lack of the ability of the s. E. C. Or the doj to say, wait a minute, x, y, z, john smith is responsible for doing this or that. Its very reminiscent, if i may, maria, of the s. E. C. s decision to pursue a failure to supervise claim against steven a. Cohen just a week and a half or two weeks ago. Yeah, right. Its very illustrative of what is going on here. There was news yesterday that the firm will be operating while this goes on. Right. And whats your take on that . My take on that is that is actually an incredibly good thing and it represents a bit of a departure from how the s. E. C. Has sometimes handled these matters. In the past, shareholders, investors, firms, funds have suffered where receiverships have been put in very quickly, emergency tros have been applied, and in many instances for the right reasons. Right. I think allowing to s. A. C. Was the right move, but what is the real question here is, where is the evidence linking individual liability . Why has the doj and the s. E. C. Not been able to pin or to bring these charges against an individual directly . Okay. By the way, on the jpmorgan story, andrew and mark, real quick, several people lost their jobs. Sure. Over the London Trading whale. Is that accountability . Thats not enough, maria. Its not enough that people have lost their jobs at jpmorgan . Yeah, absolutely not. All right. So who are you looking who are you looking to target here . Are you talking about the chairman and the ceo . Well, you know, look, ive long thought there have been other chairmans and ceos of brother rage firms who have suffered these sorts of losses and have been forced to leave. I think the firm has to pay a fine. I think it has to admit to guilt. And, you know, theres still a criminal investigation going on by the fbi and doj. So lets see how that plays out. And its possible criminal charges might be necessary. All right. Weve got to jump on this. This is a story that needs to be discussed further. Gentlemen, come back soon. Thank you very much for your time. Thank you. Well take a short break and then blackberrys new line of smartphones did not help with a turnaround for the firm. Now the company is reportedly considering going private. And then, we hope youve got an appetite tonight. Shake shack in the house. The restaurant chain has gotten big expansion plans under way, including shaking it up overseas. Coming up, danny myer, the man behind shake shack, tells us what other big plans he has cooking up. Stay with us. He sure looks good. He does. Its hard to believe he was ever sick. But the bills, they just keep coming. You remember the Life Insurance you bought years ago. It has living benefits that you could use for times like this. whispering mom, is he sick . No, honey, hes fine. Dont worry. Your hair will grow back. Mine did. [ male announcer ] state farm puts the life back in Life Insurance. With benefits you can use when you need them most. Welcome back. A new chapter in the blackberry saga. Shares rallies today on reports that the struggling smartphone maker is considering a move to go private. Seema has the story. Over to you, seema. Reporter thats right. Reports say blackberry is warming up to the possibilitiest going private. No deal is imminent. However, it was still enough to get the street excited. The stock up about 6 today. Keep in mind shares are still down roughly 90 from its peak in june 2008. That was when blackberry was one of the leaders in the smartphone space with more than 15 of the market. But now, blackberrys in fourth place with just 3 . That data according to idc. Analysts say thats due to rising competition from apple and samsung and its new blackberry 10 products being too late to the game. That has led the street to speculate whether blackberry should go private. Break up the company. Or sell off its struggling smartphone business. Although it may be too early, analysts at s p capital iq expect management to wait until the company is further along in its turnaround strategy. Blackberry says its in part two of its threepart turnaround. Its overall goal, being a leader in the mobile computing space. Back to you. All right. Thank you very much. Priceline is seeing a big bang today. The stock is soaring toward 1,000 a share. Well tell you if its time now to name your stock price. And then, if your version of paradise comes with a good burger, then shake shack is your nirvana. Coming up, the brains behind the fastfood sen investigation and how the restaurant philosophy is helping other businesses. Weve got shake shack in the house coming next. Stay with us. Scheesbucheeseburger in parad d every step of the process, making it easier to try filters and strategies. To get a list of equity options. Evaluate them with our p l calculator. And execute faster with our more intuitive trade ticket. Im greg stevens, and i helped create fidelitys options platform. Its one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. Fffffff. Laclaclac. Hes an actor whos known for his voice. But his accident took that away. Thankfully, hes got aflac. Theyre gonna give him cash to help pay his bills so he can just focus on getting better. Were taking it one day at a time. One day at a time. 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Its become so successful that other companies are going to danny for advice, including delta air lines. Thats right, an airline. Joining me now to talk more about the Restaurant Business are restauranteur danny meyer and randy garutti, ceo of shake shack. Thank you so much for joining us. Happy friday. Oh, my god, happy friday to you. So i guess, lets talk about shake shack and the Restaurant Business in general. Danny, you how did you come up with this idea . Why did you want to back shake shack . Well, shake shack is actually quite an accident. We ended up launching a hot dog cart in Madison Square park back in 2001 i remember that. As a way to bring art to the park. It was part of an art exhibit. It was literally an accident that 60, 70 people would wait for chicagostyle hot dogs every day. We did it for the second year. We did it for a third year. And finally, we said what if this became a kiosk, and it was basically supposed to add milkshakes and a small number of burgers to our hot dog cart. Lo and behold, the thing just became what it became. Here we are. Isnt that amazing . Randy, were talking about a 70 billion business for the burger business in the u. S. How do you stand out . How come shake shack has been able to differentiate itself . I think what we did is we recognized when we created shake shack nine years ago now that what fastfood ruined over all of the years it used to be the place where you came together with your mom or your friends or your car. And over time, fast food ruined that. It became how fast can we put calories in you and how fast can we get you in and out and hopefully you dont come in. Its a drivethrough. And what shake shack did was turn all of that on its head and say, how fresh can it be . How good can it be . And come together and just be together with your community. Thats what shake shack did. And thats what the world is looking for now in this age of social media and the immediate gratification. At the end of the day, we want to come together and shake shack provide as fun place to do that. You think it was a mix of fast food but also fresh, in this move toward fresh and the whole foods of the world . Thats definitely a matter of better ingredients and hospitality. I think one of the things randy was also driving at is that in the old days, young kids looked at automobiles, and, therefore, parking lots as the place to come together. Today, fewer people are driving cars as early as they used to. And we basically just replaced the parking lot with a park. And i think that smartphones have become the town piazza and the parking lot and shake shack is playing another role in doing that. Youre right. And speaking of healthy items, a lot of people when we tweet it out and we talk to different fan, theyre concerned about the fries. So they look pretty delicious right here, by the way. Your fans are about a switch from frozen fries to fresh fries. Why the switch . In the last month weve pulled corn syrup from our frozen custard, switched the hot dogs to no hormones or antibiotics ever. For the First Time Ever in nine years we switched to fresh fries in one shake shack, and it has caused the most fun, incredible debate this week. Its fresher, better, it tastes like a potato. Were pretty proud of the move. Lets talk about the shake shacks all over the world. Youre expanding in all different cities. Youve got lets talk about some of those cities. London, dubai, boston, philly, is that right . All true. Whats the plan in terms of expansion . The plan has really been when a community says, please come here with a shake shack, we always listen. The next thing we do is look at our team. When we think that we have enough leaders on our team, who are ready to grow, then we really consider it. So for example, in london, which just opened on july the 5th. We had a team of 12 members of our domestic shake shack team going there to support the opening. So its almost become a traveling crusade. And one burger at a time, were just having the best time with this. I love. Randy, is it do you have to cater to a different audience all over the world . How is dubai different from new york . We always design shake shack to fit the place. The core is always the same. We gear up and work with small artisanal producers. A pork sausage weve never done in the u. S. Is just for london. Istanbul, were working with great turkish ingredients we would not use here. We keep the core and innovate to make it taste like shake shack, but feel like the place that it is. One of the fun things about it is, we know shake shack is a chain. As soon as you have three of something, its officially a chain. But were trying to rewrote the rule and said who rewrote the rule that the link in the chain has to be exactly the same. If we can make the shake shack in westport connecticut, or new haven feel like new haven, thats what were trying to drive at. Good point. Its become a cult following like an in and out burger. When do you go public . When i hear stories like you earlier about activists, investors, i cant think of anything id less rather do. We want to focus on making burgers taste better and fries taste better and shakes taste better. You dont have a date when youll go public . No. Gentlemen, good to have you on the program. Thank you so much. Well be watching shake shacks continued growth. Priceline, 1,000 a share . Not yet. The latest cliffhanger. Will the priceline crack the 1,000 mark next week . [ male announcer ] come to the lexus golden opportunity sales event and choose from one of five lexus hybrids thats right for you, including the lexus es and ct hybrids. This is the pursuit of perfection. announcer at scottrade, our clto make their money do more. Re ann to help me plan my next move, i take scottrades free, inbranch seminars. Plus, their live webinars. I use daily market commentary to improve my strategy. And my local scottrade Office Guides my learning every step of the way. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Ranked highest in Customer Loyalty for brokerage and investment companies. Welcome back. It was a huge day for priceline today, with the earnings related rally. The first s p stock to ever cross the 1,000 a share mark. Brian stutland, how much higher that priceline go . Once it gets back above there, it needs to test there a couple times. Basically we saw the stock break above 775 at the beginning of 2012, its been off to the races. To be honest with you, its a good quality company, despite the high price here. The fundamental analysis is best. You get a little bit of european vacation exposure out of it because theyre so big out over there. A play on europe and i like it to continue higher. Thank you so much. Thanks, brian. For more action, check in at 5 30 eastern right after the closing bell. Stay with us. Back in a moment. [ indistinct shouting ] [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All on thinkorswim from td ameritrade. From td ameritrade. Could save you fifteen percent or more on car insurance. Yep, Everybody Knows that. Well, did you know some owls arent that wise . Dont forget im having brunch with meghan tomorrow. Who . Meghan, my coworker. Who . Seriously . Youve met her like three times. Who . sighs geico. Fifteen minutes could save you. Well, you know. Im bethand im michelle. And we own the paper cottage. Its a stationery and gifts store. 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A Community Wide program that offers free classes that inspire families to get out, enjoy moving together, and even track their activity online. Its part of our goal to inspire more than three Million People to rediscover the joy of being active this summer. See the difference all of us can make. Together. Welcome back. Before we go, lets take a look at the day on wall street. Tough day for the bulls once again. We snapped a sevenweek winning streak for the market. Nasdaq gave up 9 and s p down by six. Stay right here, fast money begins right now. Live at the nasdaq markets in new york city, times square. Lets get sdrat to the big story fast is following tonight. Stocks underperforming the market this year, but outperforming for the week. Do you buy into these back from the dead trades . Guys . Yeah, theres some out there. What do they call that, a headstone, tombstone . Sure. Ironman tombstone. Thats