Billionaires this week, and a certain millionaire actor. Well get to that in a bit. First, bill ackman was leveling a charge at zoros fund. A stock that ackman is shorting. The question is was that illegal or is this just a case of sour grapes . Former s. E. C. Boss harvey pitt will weigh in. Also, much more fallout from George Clooneys fullthroated assault on dan loeb and his move to try to split up movies. Is clooney biting the hand that feeds hollywood . Well look at that and more. Look forward to that. Also black monday for Major League Baseball. Multiple suspensions for performanceenhancing drugs coming down at any moment. Alex rodriguez is expected to get the worst of it. Maybe thats why hes the only one fighting the suspensions. Were live in chicago where a. Rod is still expected to play his first game of the season this evening. You cant make this up, folks. We are there for the spectacle. Turning our attention to the markets right now. As we mentioned, the dow is down by about 50 points. The nasdaq and s p are also pointed lower. Again, this comes off of friday in which we closed at fresh record highs with the s p above 1,700 1,709. But not able, at the moment, to hold onto those levels. The stocks retreating from record highs. Bob, whats the mood down on the floor of the New York Stock Exchange . The mood is cautiously optimistic. The problem is were going into august, traditionally not a good month for the stock market. Volume is now very much on the light side today. Take a look at the dow. I would have hoped the ism services number, which was terrific this morning, would have given more energy to the market. That hasnt happened. The dallas fed came out this afternoon, talked about the need for the fed to wind down its bondpurchasing program. That took a little bit of the wind out of the market. Looking at the sectors. Techs holding up. Apple has a good day. Technologys up. Consumer staples are up. Tyson at a historic high. Consumer discretionary weak. The homebuilders are weak. They havent done anything big, for days, exxon, shell, all missed. Fassenal, a Company Everybody loves, they make nuts and bolts, came out with Sales Forecast sales commentary for july a bit below expectations. That was one reason the homebuilders were very much on the weak side. As for the numbers here, the economic numbers, i think its two out of three for july, guys. So the ism services, ism manufacturing both beat. Its the nonfarm payrolls that missed. Heres the problem. Somebodys got to be wrong here, because the services and the manufacturing numbers both showed that the jobs were expanding, and the nonfarm payrolls said jobs were below expectations. Its not clear whos right. Michael roark had an interesting comment. He thinks its nonfarm payrolls are wrong, theyve experienced upward revisions 80 of the time over many decades. Thats an important point to bear in mind. Look for some upward revisions in july, nonfarm payrolls. Back to you. All right, bob, thank you. Down on the floor for us. Joining us now in our Closing Bell Exchange is kyle harrington, anton, josh, and Rick Santelli. Josh, you mentioned how you saw a record amount of money in july flowing into u. S. Equity funds. Well timed or too late to the party . I guess thats a function of the individual persons timeframe. But lets focus on what the big picture here is, scott. Why is this happening . We havent had an economic blowup in quite sometime. And a lot of that money has been hiding out, as though a blowup were imminent. In the meantime, the fed has added about 2 trillion, by my count, of excess liquidity into the system, totally pent up, and at this point, people are starting to envision a future where we actually get some decent growth. Its not here yet. But some of the signs are starting to point that way. So im not surprised at all to see the flows coming in. The most important thing, guys, is that money does not chase value. Money chases performance. Stock market versus bond market over the last three years flipped positively in favor of risk assets, and thats really why youre seeing the flows change this way. All right. And we have some breaking news. Much expected news from Major League Baseball right now. Mary thompson has those details. Mary . Hey there, scott, from the press release from Major League Baseball. Commissioner bud selig announcing that a. Rod has been suspended without pay for the remainder of the 2013 championship season and the entire 2014 championship season for violations of the joint Drug Prevention and Treatment Program. 12 other players have also had also been or will have 50game suspensions. None of those players will appeal their decision. Of course, right now, were waiting to see whether or not a. Rod appeals this. Of course, because it will be very costly to him. Now, if indeed, he goes through the appeals process, the appeal has to be heard within 20 days and then 25 more days before the decision on arbitration is decided. Let me just give you some more from this from this press release on Alex Rodriguez. Of course, the yankees star, the highestpaid player in Major League Baseball. Rodriguez disciplined under the joint drug treatment excuse me, the joint Drug Prevention and Treatment Program is based on his use and possession of numerous forms of prohibited performanceenhancing substances, including testosterone and Human Growth Hormone over a number of years. Rodriguez is disciplined under the basic agreement, is for attempting to cover up his violations of the program by engaging in a course of conduct intended to obstruct and frustrate the office of the commissioners investigation. The you specs, which becomes effective on thursday, august 8th, will cover 211 championship games and even 2014 postseason games as well. Rodriguezs suspension will be stayed until the completion of his appeal, if rodriguez files a grievance challenging his discipline, which is likely to happen. So once again, a. Rod is suspended starting august 8th for the remainder of the season pending an appeal, as well as all of 2014. Back to you. All right, mary, thanks so much. Mary thompson, again, with the expected news from Major League Baseball. The suspension of 12 players for 50 games. A. Rod for the remainder of this season and all of next season, pending, of course, his appeal. The biggest names on the list of 12, as you call it, Jhonny Peralta of the detroit tigers, thats big. The starting shortstop for the tigers. And, by the way, they are leading the a. L. Central leader. Nelson cruz, allstar player for the texas rangers. But everybody trumped by Alex Rodriguez, highest paid player in Major League Baseball, suspended for all of this year and next year. Still owed 86 million by the yankees in the remainder of his contract, and what makes this story have a little more sizzle on this day, is the yankees are playing in chicago this evening. A. Rod is expected to take the field for the yankees unless we hear otherwise this evening in chicago. Well have more on this story for the remainder throughout the remainder of this program and the closing bell at 4 00. But lets get back to our discussion with the market guests, as we focus on this monday in august on wall street. Again, josh brown was with us, as is Rick Santelli, kyle harrington, and anton bear from up capital. Anton, to you, what do you make of where we are in the market . Where do you think we go from here and between now and the end of the year in the context of the record amount of money coming into u. S. Equity funds in the month of july . Yeah, so i agree with a lot with what josh had to say that investors are going to chase values. And the challenge is that were seeing a very technically strong market. The fundamentals are just dragging behind the technicals. We saw the new jobs report, 162,000 jobs last week. But more than 50 of those jobs are wages under 20 a share or 20 an hour. And so, what i think were in i think we have a twostage event between now and the end of the year. Between now and september i think were in a flat spot. We dont really have any news that will come out of the federal open market committee. We have some meetings that theyre going to do on the 17th and the 18th of september. I think thats going to be a key meeting, where investors will be looking at what the feds are going to do and whether or not tapering will take place. And then we have the second half of after september to december, will be largely predicated on what the feds do and how investors interpret what the feds say. Well, im interested, kyle, is it much about what the fed does, or actually, does it come down to this decision that almost this pivot point as to whether the economy looks like its Strong Enough to justify stocks at record high . You called friday the nojobs report. Yeah, exactly. I think this, kelly. I think that the u. S. Marketplace is still the marketplace where everybody is still following and going to put money. No return in the fixedincome marketplace. I would agree with anton that the flows are coming into the u. S. Markets. However, i would say that Going Forward here for the next couple of months, i think that the jobs report stays the same. I think gdp growth remains sluggish. So what i would advise is be very proactive. Be optimistic but be proactive about finding funds, finding individual stocks, finding etfs that match your individual risk tolerance, because i think its going to be choppy and volatile from here to some extent, thats what weve seen. Weve seen correlation drop. Weve seen people be rewarded for picking the right names in this market. I guess, do you have any recommendations that are specific, then, for people sort of looking at the set of circumstances and say, okay, well, im happy to pick, but tell me what to pick. Heres what i think. I think growth. I think alpha is going to come from the technology sector, the biotechnology sector, Going Forward in the united states. So identify tech funds or individual stocks that have, i think, large cash positions, are buying back their own individual stock a company like intel, which Everybody Knows but i think a reasonably valued, and put those in your portfolio and watch them very cautiously. Rick santelli, you know, as we watch rates here and we talk about this record amount of cash coming into u. S. Equity funds, are you prepared to think that a great rotation, or any kind of rotation really, is upon us . Is this money coming out of bonds and into stocks . Is this momandpop money from the sidelines that finally believes in the rally . What is it . No. As a matter of fact, i urge all viewers and listeners to go to cnbc. Com and look at my Santelli Exchange extra with the chairman of trim tabs that were quoting. He talks about the disproportionate amount of that 40 billion thats etfs, and historically thats a contrarian indicator. As far as the great rotation, i would say consider it this way. Interest rates have been very sticky. Its an asymmetrical relationship. Theres more good upside on down numbers, just look at the last two employment reports. With the stickiness, theres a lot that has to do with the a. Rod story. I think theres a lot of asterisks in the Investment Community right now, and 2. 6 trillion in money funds, thats the source of your great rotation, and i think its going to hunker down there for a while longer. So, josh brown, you know, in the context of what may or may not happen with the taper, when it may come down the pike, what do you think the market is prepared to do once we get into september . Well, i think the taper probably at first generates some tremors in the market. I think the narrative shifts and ultimately people look at it as a positive sign, if and when they do taper, that the fed even can, and that the market doesnt fall to shambles. I just want to disagree with Rick Santelli on the concept of etfs historically being a contrarian indicator. I actually think thats wrong. I think that they used to represent much more aggressive money than they currently represent. People didnt use to substitute etfs for mutual funds back in the day. But now they do. So i think the holder is not the same. So i dont want to look at that as all aggressive trading money. A lot of etfs now are longterm positions. Theyre not what they used to be. All right. Its a great point, josh. We want to thank you and tom kyle and rick for joining us in the closing bell to kick things off at the top of the hour. Now breaking news on detroits bankruptcy and the value of the citys art. Robert frank joins us now with the details. Hey, robert. Reporter kelly, big news, or possibly, for the detroit bankruptcy. The emergency manager kevyn orr has hired christies to assess the collection of the art. The art is valued by many as well over 1 billion. Orr says that while, quote, there is no specific plan to sell the assets, the move is taken at the request of creditors. He said, quote, the city must know the current value of all of its assets, including the cityowned collection at the dia, and orrs statement goes on to say theres never been, nor is there now any plan to sell the art, this valuation as well as the valuation of other city assets is an integral part of the restructuring process. It is a step the city must take to reach resolutions with its creditors. It goes on to say that this is needed for the strong future of detroit and its residents. He said the auction house will also advise the city on, quote, nonsale alternatives. Unclear what that means. Christies will be valuing works like van goghs selfportrait, and the collection includes working by picasso and others. Christies is confirming the hiring, saying it will, quote, continue to focus the efforts on being a positive force in both the interest of the city and the arts community, including working with our fellow arts professionals at the dia. This is important, because while there was speculation they could sell this work, there had never been the official hiring for an assessment or christies involvement. Guys, back to you. Do we even know, robert, a value is there any estimate of the value . The initial expert estimates were over 1 billion. I mean, just my back of the envelope, looking at some of their collection and others looking at it, it is well over 2 billion. And given where the art market is right now, it is so hot, these prices are so high, it could be well over that. So i think this number, when it comes out, is going to be huge. You look at what these Pension Funds are saying, the police Pension Funds are saying, you know what, wed rather the money than the art. Youll have a battle between the pensioners and the cultural groups. This will be a hotbutton issue in detroit. Yeah. 2 billion. Wow. Robert frank, thank you very much. Okay, guys, thanks. Robert with the latest on detroits art collection. Now, about 45 minutes to go before the closing bell and dow is sitting down about 45 points. Big news out of china. The government there reportedly considering its onechildonly policy or reconsidering, which could have a huge Global Economic impact. That story is next. Then, the street battle that seems to be targeting hedge fund bill ackman is heating up again. Now, georges fund is involved and now ackman is throwing out accusations like Insider Trading. Well get you the details on that. And another hedge fund battle, the fallout after George Clooneys harsh words for dan loeb saying wall street guys know nothing about the movie business, but who funds much of the movie business . Well talk to a hollywood movie producer about where the movie money comes from and how much of it is from wall street. You may be surprised by those facts. [ 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 scottrade knows our and invest their own way. With scottrades smart text, i can quickly understand my charts, and spend more time trading. Their quick trade bar lets my account follow me online so i can react in realtime. Plus, my local scottrade office is there to help. Because they know i dont trade like everybody. I trade like me. Im with scottrade. announcer scottrade. Voted best Investment Services company. In a we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. 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 welcome back. An interesting report out of china today that could have Global Economic implications. After more than three decades, china may be reconsidering its onechild policy, even as soon as the end of this year. Why now, and what would it mean to the Global Economy . With us now is the author of the coming collapse of china, gordon chang along lee what the u. S. Can learn from china. Great to have you both with us. Ann, why do you think china is reconsidering this now . They have a number of challenges going on. They are in the midst of a transition from an industrialoriented economy to a more serviceoriented economy. And th