Preorders for the new iphones were coming in strong. Could the ipad pro be causing problems next quarter, thats coming up. Plus theres the fed. The decisions impact on biotech of all places. We will break down how thursdays big meeting could shake up that sector. Plus weve got two stocks that could break out no matter what the fed does in that space. We will tell you what those are in just a moment. We will start with alibaba whose shares with falling, down 3 right now after bare rons put that report out saying the stock could fall another 50 in price from here . In the past alibabas jack mau has said he doesnt pay much attention to the companys stock price. Listen. I dont watch t i think we will let the market take care of themselves, we should watch and take care of the business. When it goes down im not excited, when it goes down im never depressed. This is how people look at and what we should focus on is our business, our customer, our employees are the same. What are you going to do . Youre going to go on the street telling people my stock is too low. Or my stock is too high . Forget about that. Just focus on creating the business. Okay. So thats what he said and yet alibaba came out with a five page five page response late yesterday to the bare rons article trying to set the record straight. Seven points. Seven long points in this thing. They said the barrons report contained factual inaccuracies and selective use of information and that the conclusions that the report who are wrote the piece draws are misleading. It was a long for a company that doesnt care about its stock price it cared very much about this piece in barrons over the weekend. Is alibaba worth buying on its weakness. Joining us is jeff previous who is bearish on alibaba and henry globe who is bullish. Henry, why isnt alibaba going down 50 from here . So we remain positive on alibaba. We still think theres huge potential in terms of growth in china. As of now only 50 50 of the Internet Users participating Online Shopping so we think that is a huge opportunity for alibaba as an Industry Leader to benefit from that trend. Jeff, essentially Jonathan Lang of barrons was saying the stock is expensive, the execution is suspect. The comparisons the company says were not appropriate, comparing them to a price to earnings ratio of ebay or other problems. Did you agree with the barrons article or do you have other reasons that youre bearish on the company. I do think alibaba is protesting too much. Ive got to say i cant necessarily disagree with the motion that ebay which is this legacy ecommerce platform is not the proper comparison to alibaba. Im sympathetic to that point. On the whole i think the most important point that investors needs to realize is theres a lot of opacity and confusion on whats going on with this company. We heard a lot about that around ipo, a lot of people expected i guess we would dig into the company, all we continue to hear is this china miracle. A bunch of consumers that can be unlocked. Not only is that a concern for me because of a slowing economy, but auto makers had the same metrics that they trotted out about how theres only four cars per 100 chinese and it was going to be a big deal and autos were going to be everywhere in china. We saw a brief pop then saw it fall back into a pretty modest growth rate for auto make nurse china. I think its good to be interested in how much money they spend on ecommerce instead of making a blanket statement. Henry, at the same time the company itself was the one who at that city tech conference a week or two ago came out and said it was going to miss its annual merchandise growth volume projections by mid single digits. Its a pretty big miss, its already seen a slowing in those volumes. You can be right about the secular growth story and still wrong about the potential for alibaba to maintain its rapid growth pace. Yeah, i agree. So i think thats really because of the large base for alibaba and also from jd. Com which has made progress. Still you talk about the Consumer Spending still its too early to draw conclusion about the Consumer Spending impact by the economy. We still need to monitor the trend over there to see how is the Consumer Spending trending over the next several quarters. Henry, isnt the point that alibaba in a way is telling us, right, to some extent we can look to the market for information that especially in china is hard to get otherwise and the message seems to be the Consumer Spending just isnt there, at least in what was previously baked into the shares. Yeah, but still we dont know. The market is kind of guessing the management expectation. We dont know what the management expectation in the first place. So they say in the single digits, mid single digit lower their expectation. I think that is conservative on their guidance in terms of the quarters. Jeff, if you were invest nothing a company like alibaba for five or ten years, a long time buy and hold, is this the tie to buy it . I mean, i dont necessarily think it is because the most important thing to refer remember is not just forward guidance, they missed wall street expectations on the top quarter. I think its 12 times current sales and its like 8 times next years revenue. If we continue to see guide down and miss on the revenue that multiple looks more obscene. A long way of saying its well and good to think they will eventually resolve this multiple in the valuation or compare to other high growth chinese stocks which havent done so well this year. So i think its very dangerous to expect this ratio to resolve in a favorable way for alibaba. Youre paying big premiums for growth that were uncertain about. To me thats not a recipe im comfortable with right now. Gentlemen, thank you. Alibaba is down 3 on the session today. The shine from a lot of Public Offerings is wearing off as your dominic shoe has details on more of them. It might be in the ipo market fore told a little bit about the markets turmoil we have seen over the past month and a half. This is the renaissance ipo Exchange Traded fund the ticker is ipo. Renaissance capital is an eef fund manager. This particular etf which is in the white line is the performance line year to date. The orange line is the s p 500. You can see early in year they tracked pretty closely. All of a sudden ipo started to outperform. Just before the market really took down we saw a downturn in the overall ipo market. Now at least the s p 500 is out per forg those oips. Its possible that the ipo pipeline is going to dry up and thats got some investors concerned. The reason why is because as you guys just pointed out with your alibaba discussion a lot of high profile ones over the course of, a, the past year or so have seen their share prices dip below their ipo price. Alibaba is one of them. You take a look at some of the other high profile ipos as well. Take a look at some of these other ones, for instance, etsy, down 10. 5 and thats just since their ipo. Take another one here, this is box on the clouds storage side of things also below its ipo price as well. The question then becomes whether this dries up the pipeline and what it means. Cathy smith over at Renaissance Capital spoke earlier today on squawk on the street and talked about what it means and why it could be a bright spot for future ipos and their performance. I think the important thing to note and weve done studies of this, that after a dry spell in the ipo market that were having now because of these points i just made, after that usually the ones that are done almost all trade very well. So after the facebook ipo, a month went by and almost every oo ipo done over the next month did quite well and those included service snell and palo alto networks. The this ipo market is not going to survive given all the volatility, the bullish side is perhaps the ipos ss that do woman com to market come to market decidedly so. Ipos, whether or not this means we could see better performance for those ones that actually do come to market later on down the line. You have to figure if its able to come to market in such a tough environment it deserves t dom, thanks very much. Lets get to our Closing Bell Exchange as we begin this week. Who knows whats coming on thursday. Joining us now anthony chan from chase, peter kosta from empire executions, both of them there at post 9 near at the new York City Stock Exchange and its the return of Rick Santelli and you came back just in time. What are your thoughts going into this week . Not only do you think something is going to happen on thursday, but are the markets setting up us for it right now do you think . You know, in terms of the last question, i like at a 217, 21810 unchanged on the year, i think that says it all. When i look at the equity markets weve seen much higher prices yearly in the year than we do now and thats a split decision between Global Economics and the catalyst of which may be the fed and normalization. Personally im a better man in terms of steve leaseman i bet him last november they wouldnt raise for all of 25 2015. On the other hand, i really think they need to. Im not sure how its going to turn out, it will be like you, bill, asking me to think of a number between 1 and 100 because i think you would have as good a chance of guessing that number as we have to guess what stand fisher, janet yellen and company are going to do. If there was rules that we all could see that were plain and simple, if this then that i think the market would have an easier time of it. I think ultimately the latter is going to be the levin we all learn depending on the outcome thursday. If we dont normal lies i would expect you would see a pretty good rally in economics. If there is normalization maybe there will be a better market ahead. The real issue is knowing that the economy is calibrated to something a little more eelist i can rather than an Interest Rate subsidy that benefits the investing class. Anthony, the wall street journal reminds us how many Central Banks, israels included were eager and quick to raise Interest Rates only to have to turn around and drop them again. What makes you think that this time will be different with the u. S. Experience after watching israel, sweden, the European Central bank and others try to do this and then have to reverse course . Kelly, you are spot on. Those three Central Banks did have to reverse themselves. Thats one of the things that the Federal Reserve is watching. The Federal Reserve has three children, the first one is the employment child and that one tells them they are ready to go because Employment Conditions are great, but then it has the price child and prices today according to the Federal Reserves price mandate we are not there yet and their new newly conceived child market volatility we definitely are not there next. If you look at the market vix we are covering around 24. 5, volatility is greater and even for those people that say things are calming down in the chinese equity markets, guess what, weve been seeing over the last couple days that the equity market opens low and sort of stabilizes or doesnt drop so much towards the end. It sounds to me like that has the chinese out there buying. Market volatility still a problem. Historically when the Federal Reserve tends to raise rates that pushes market volatility even higher. Fisher has told us thats something they are watching. I would say two out of three says they might wait a little longer and maybe rick will be right and they wont move this year. I think they will move in december. Peter, what do you think . This market were down 78 right now on the dow, but for the week do you expect kind of a quiet anticipatory week before we get to thursday or what do you think is going to happen . I think a lot of people will be betting a little bit to see what happens on thursday. Me personally i agree with rick totally. I think that we probably wont see anything until the First Quarter of next year and i would love to see a rate hike. I think that normalization would be good for the economy and good for the market and good for everybody, i just dont think its going to happen just yet. Do you agree that a rate hike on thursday would bring a rally . I dont know go b. Is the converse true, then. If they dont raise rates we get a sell off . Its possible. I think the initial impact will probably be a little bit of a sell off. I think that longer term meaning two or three weeks you will probably see the market rally because when the fed raises rates its obvious that the economy is doing well, the reason they are raising it is because theyre worried about inflation, wage inn plagues, the positive aspects of a growing economy. If they do worry about that and do feel that thats where we are in then thats good for the market, its great for the market, but i dont think we are at that point yet. I think we still have probably another three or four months before we see that kind of positive growth, the wage growth they are expecting. We havent seen it yet. We havent even seen a major uptake in it. I think that we still we will probably see nothing happen next year. All right. Thank you, guys. Thanks, good. Rick, good to have you back. Thank you. Just in time, 45 minutes to go in the session today. It is waiting on the fed this week, the dow is down 67 points, the s p is down about 8, the small cap under pressure declines 0. 4 of a percent, apple is down about 15 points. Apple says their new iphones are on pace to hit record first weekend sales, but there is something that could dampen sales of the ipad pro. Josh lipton will have the low down coming up next. Also ahead meg terrell tells us what could happen to the biotech sector. This one has been in their cross hairs. Stay tuned. Its more than the cloud. Its security and flexibility. Its where great ideas and vital data are stored. With centurylink you get advanced Technology Solutions from a trusted it partner. Including cloud and hosting services all backed by an industry leading Broadband Network and people committed to helping you grow your business. You get a company thats more than just the sum of its parts. Centurylink. Your link to whats next. Im a senior Field Technician for pg e here in san jose. Pg e is using new technology to improve our system, replacing pipelines throughout the city of san jose, to provide safe and reliable services. Raising a family here in the city of san jose has been a wonderful experience. My oldest son now works for pg e. When i do get a chance, an opportunity to work with him, its always a pleasure. I love my job and i care about the work i do. I know how hard our crews work for our customers. I want them to know that they do have a safe and reliable system. Together, were building a better california. Were keeping an eye on shares of Apple Holding on to gains today, the market more broadly is down but apple is up about 1 . The tech giant saying its iphone 6 could break sales records when it hits stores on september 25th. However, and there are people on twitter long im pushing the stock down but im just reading this copy here, its new ipad pro may already be facing a key component shortage, josh lipton that is that story for us. Lets start with the iphone news. The 6 s and 6 s plus became available for preorders on saept and this morning apple saying that orders were very strong around the world. The company is on pace to beat last years first weekend sales of 10 Million Units. Rbc does note some caveats here, apple didnt announce first weekend pre order data like last year, china was included in the initial launch for the first time and while the 6 s plus is back ordered he says the 6 s looks to be broadly still available. Still net net saying that the numbers are a positive. Hes looking for the stock to move to 150 over the next 9 to 12 months. There was also a report on the ipad pro. Digit Times Research is saying because of that tablets price point and what the firm says are supply shortages shipments will reach less than 3 Million Units in q 4, but Creative Strategies says investors doesnt focus on the ipad pros performance in q 4. His point is its only first launch nothing november. Instead he says this Holiday Season investors will and should concentrate on sales of the apple watch and those new iphones. Guys, back to you. The key here in shortages and parts issues can go one of two ways, the best news for any company is that they dont have enough to meet demand, right . Exactly. Right. I mean, listen, baharas point was nets lets not look at q 4, instead lets look at the quarters beyond that. Whenever i talk to tim cook he is still enthusiastic about the tablet and a lot of that is because he still thinks it can be such a tool in the workplace. Thats what the really they hope for with the ipad pro, thats why they have these distribution agreements with ibm and cisco. We will see how that plays out in the quarters ahead. And yet the iphone we wring our hands every time i make a new announcement and yet they are look to go break sales records every time, right . Right. You look at that stock, they had a nice run in the past five days, still down 10 interest fed rate hike that recent high. That is the worry, the concern of some skeptics, can they grow these iphone units in the quarters ahead given those tough comps, given a slowing china, giving a maturing smartphone market. I think bulls are going to say at least on the last Conference Call cook told us 30 of users had moved to the 6 and 6 plus that is correct would imply a lot of head room ahead at least in temples upgrades, guys. All right. Josh, good, thank you. See you later. Josh lipton with that incredible view of i was thinking the same thing, doesnt it look beautiful there. We have our new bureau out in San Francisco and they have a wonderful view out there. Is that the oakland bay bridge . Okay. I stand corrected. Its still a beautiful view there. 18 minutes left in the trading session now with the dow down 61 points as we head toward the close for this monday. How about the feds Interest Rate decision this week impact consolidation in the biotech space . We will talk to meg terrell with a special report next. Coming up two stocks that may be poised to break out no matter what the fed decides on thursday. Thats coming up here on closing bell. Before at t and directv are now one. Which means you can watch movies while youre on the move. Sitcoms, while you sit on those. And even fargo, in fargo binge, while you lose weight and enjoy a good cliffhanger while you hang from a. Why am i yelling . The revolution will not only be televised. The revolution will be mobilized. Introducing the all in one plan. Only from directv and at t. This just in 50 million customers data was not compromised this morning in a Security Breach that didnt happen. Wall street. Not rattled. At all. No. Not at all. Not at all. I mean, look at the day. Sir. Sir. What went right . What went right . Everything. Thank you. With threat intelligence, behavioral analytics, and 6000 experts, ibm security will help keep you out of the news. My dads company wasnt hacked today. Cool. You know, biotech mergers and acquisitions have been red hot this year. Huge volume. What could happen to that if the fed decides to hike Interest Rates later this week . A lot of people have been worried about this idea that the rising fed Interest Rate will effect biotech valuations and the m a sector. We took to look over the last ten years to see if there is any correlation. There is an inverse correlation, fed rate coming down, the rate index going up. The question is does inverse correlati correlation. They say reasons to worry about r. Things like if the Interest Rates go up then that means as you are val ewing longer term assets like biotech drugs you should discount those a little more. Also that there is a risk off environment. Why not worry. Other things like how solidly the business is performing, how good your pipeline is and how strong the m a market and peoples appetite for risk matter more than the Interest Rates. Bank of america did an analysis this have to see if over 20 years there was no correlation between these things and they have found in general not interest. When Interest Rates rise that doesnt affect biotech valuations too much. They find wasnt it did it was typically amongst smaller companies. When you look at m a a, folks dont think its going to have much of an impact on what that has been a huge year for biotech m a. The first thing i thought, one, maybe it needs to cool off a little bit, right . Number two, janet yellen has already promised even when they win raising rates they will do it in a very gradual process, i cant imagine thats going to shut off the m a spigot just like that. Thats true. Big Companies Still need to buy and add things to their private line. If you look at the deals we have already had, we have some that are still pending on the table, folks are speculating this is going to continue. Listening to our your reporting, words like immune know their piece, things on fighting cancers that we couldnt imagine a few years ago it seems like this is powerful enough to overcome whatever moves may or may not happen with Interest Rates, is it not . Thats what a lot of people think. Its interesting you brought up immunotherapy. There are ideas where people are excited about the technology and it is paying off in some aspects of the market. Its in the bigger companies, people feel more comfortable investing. The smaller ones there is so much excitement, folks have started to wonder if thats where the valuations have gotten too high. These tend to have a rhythm of their own, sometimes the fed pricks thems, sometimes they get overheated. I have to bring up the irony of Janet Yellens call on small biotech stocks. It didnt work out the way some might have expected. Time for a cnbc news update. Lets go over to sharon epperson. The history professor who was killed in his office at Delta State University in mississippi has been identified as ethan schmidt. The shoot sr still believed to be on the loose but no longer on campus. The campus is being cleared with classes canceled for the rest of the day. California Officials Say 23,000 people have been displaced by two explosive wildfires decimating whole communities in northern california. People have packed Evacuation Centers as the fires have destroyed hundreds of homes and led to one confirmed death. Republican president ial hopeful scott walker is hoping to revitalize his campaign by taking on unions. A familiar foe for the wisconsin governor. His plan calls for eliminating unions for employees. Federal government. And Forbes Magazine has named the Dallas Cowboys as the most valuable franchise in the world. With an estimated value of 4 billion. Number two is real madrid, with the new England Patriots and new york yankees tied for third. And thats cnbcs news update at this hour. Back to you. That was before last nights win, bill . You had to show video from last nights game . Thank you so much. I appreciate that. If you have for those giants. Thats great. 30 minutes to go until the close. The game was one minute too long. One minute too long. If we could have just ended it one minute early we would have been fine. Where was i . Now im thinking about federer and what he might have done with more time or not. Anyway, 30 minutes to go, the dow down 75 points, s p down 9, the nasdaq 19. So we are picking up a little bit to the down side here with half an hour to go. When we come back a leading trader will tell us what to watch in this final half hour this have monday where the dow is down 69 points. Plus Technical Analyst carter werts says two stocks could be poised to take off regardless of what happens with the fed this week. We will tell you what those are first in business worldwide. Lease the 2015 rc 350 for 429 a month for 36 months. See your lexus dealer. Here at td ameritrade, they work wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. The dow about 77 points to kick off the week given about a half percent across all the major averages. The s p 500 sector heat map it actually has everybody in the red except for utilities. The best performing one up about a third of 1 , materials at the bottom there down 1. 3 , energy on the weakness and crude is down 0. 8 . Bill. Defensive play there, i guess. Were heading into the last half hour, critical time for the markets on this monday. Mat chesslock is with me here. It is oversimplifying to say we are going to a. M. Bl along until thursday. Not at all. We are finally seeing a 75 point down day mean nothing. After the volatility we saw in august thats for sure. Thats going to be the norm. I think volatility is going to be the case Going Forward here, even the people that are betting on the etfs theyre taking the money out of the inverse volatility. Thats the norm of Going Forward. Oil, there is still seems to be a tick by tick correlation. Why . Because its to global. We saw the industrial data out of china which was a little slower, oil took the brunt that have this morning, we opened down and stayed down all day. Its definitely going to be a part and pargel Going Forward. Weve seen a slight rise of the 30 year treasury in terms of yield here. Is that going to crimp stocks style or will that matter at all before thursday . I think its all about thursday as far as stocks about. We Awesome Companies go out and raise money prior to this deal. We saw at the end of the august no one wanted to do anything with all the volatility. We may see a lot of that Going Forward. It would be a good time to get companies involved. Mr. May be mergers and acquisitions until the end of the year. Any levels youre watching . Not at this point. We had such dramatic moves. Youre going to play light at the end of the day and k active in the morning and ride it through the rest of the day sniel see you on thursday. All right. Good luck to your falcons tonight. Thank you. They will need it. See you later. Weve got two stocks now that could rally no matter what the fed does later this week. Carty worth who is head of Technical Analysis is here to tell us what they are. Welcome to you. Thanks for having me. Drum roll, please. Yeah. What i thought we would look at is just the stocks that have spent a lot of time doing nothing and i think thats the opportunity. They have a Pre Condition of great run ups and then consolidating and they look to my eyes being poised to break out. These stocks have nothing to do with one another. This is basically proteins, chicken, beef and price line on travel. Its the Pre Condition thats to important. You have these big run ups and then whats key is the consolidati consolidation. They made no progress from march of 14 to september 15. An 18month consolidation. Thats what is the setup, a great run up and then a great consolidati consolidation. These are eerily similar. And they have nothing to do with one another. The next chart is tyson itself and then price line. These have been dormant as the market has moved higher. What we have here is the same setup, essentially a triple and then after the big run up you get the consolidation and the presumption is that were going to actually come out of this range. Theres 45 levels being in effect for 18 months, made no progress, lagged the market on n. That period. What about bird flu . Happily im unburden nd by any of that. You dont care. I couldnt care less. As the first start shows us tyson and price line are identical. Lets show price line. Price line really the same opportunity in terms of almost a triple, the big run up and then of course weve got our sideways and im thinking to my eye the next up leg. Again, the Pre Condition of strength outperg the market, the second condition of underperforming the market. When do you get burned using this approach . You get burned about a third of the time. These are sort of 65 35 moments. What percentage of the time do they in fact do what im marketing, break out or do the exact opposite, youre buying at the high and it breaks out. Do you look for higher highs . And signs and volume. Big tells that theres accumulation. Something to watch. Regardless of what the fed does thats my favorite part. Carter worth, appreciate it. Thank you, sir. A true chart watcher, doesnt even read a newspaper. Thats for sure. All right. Weve got 13 23 minutes left in the trading session here, the dow starting to move a little bit lower down 86 points at this hour with the s p down 10 and the nasdaq down 23. When we come back a warning about a slowing u. S. Oil production from a rather unusual source. That would be opec. What they had to say about our oil still to come. Plus military drones have been wage ago war in the skies and now Corporate America is fighting to maintain those drone contracts. Just ahead what this means for big defense contractors and National Security on closing bell. Awe believe active management can protect capital long term. Active management can tap global insights. Active management can take calculated risks. Active management can seek to outperform. Because active Investment Management isnt reactive. Its active. Thats the power of active management. Good. Very good. You see something moving off the shelves and your first thought is to investigate the company. You are type e. Yes, Investment Opportunities can be anywhere. Or not. But you know the difference. E trades bar code scanner. Shorten the distance between intuition and action. E trade opportunity is everywhere. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Less than 20 minutes left, the dow is down 91 points, our is a tis significance pointing out the dows trading range has been 120 points, thats the smaller trading range we have seen for a day since august 18th. You know, all the volatility in august, since august 18th the average daily point range for the dow was 405 points. Wow. So today is 25 of that or a little more than that. And the strangest thing is you are in the market, bill, you would almost thing thai period never happened. Yes, you would. Meantime true car is lower on news that google has hired on the online cars company away to be the head of the self driving car project. He used to be an executive as well as ford and hyundai. He starts at google tomorrow. A turn of the tables, opec is paint ago not to positive light on oil production. Hi, jackie. Good afternoon. We will start with the closer price. 44 on the nose today. We were hoping to see either over or under to get a direction of where the oil trade would go, traders do think we probably will go lower from here. There was concern in the marketplace today about that industrial data out of china, also concerns that china wont deep its gdp targets, you had a little bit of a stronger dollar as well, oil traders also watching whats going to happen with the fed and gasoline got hit. As if that wasnt enough the perfect storm to send us lower us the opec monthly bulletin out. What the cartel said was that it does expect to see nonopec producers that are other producers within the global marketplace see their supply come down a little bit but the caveat is that they also have taking down their 2016 demand forecast. So both of those things go down together. It probably wont change the Market Dynamics that much. In terms of production opec pumped 31. 5 Million Barrels per day in august, that is a relatively high number and if we do see iranian oil come back on to the marketplace then globally speaking we do have the same kind of supply concerns that we were dealing w of course, traders still talk being that 20 call from goldman sachs, they say when goldman speaks typically markets listen. Goldman has been wrong in the past but at the same time its not something to sneer at begin the current market conditions. Back to you. Gasoline is down 29 Straight Days now, the National Average, somebody told me they saw 1777 near the consumer studio in morning. Expect it to go lower because as i said the products really got hammer today and that is because people arent traveling as much now that they are in the swing of everything after labor day. And we are getting the cheaper winter blend coming up as well. Listen to me, i sound like Jackie Deangelis now. Sounds like starbucks, the Pumpkin Spice latte and cheaper winter blend. We do have lof it. Thank you, jackie. 15 minutes to go here. The dow continues to edge lower, its down 83 points right now so gains approaching more than half a percent even for that nasdaq today. We have someone coming up losses i should say. Im sorry. We knew what you meant. We have somebody who says there is something much more important than the fed rate hike weighing on stocks right now. What could that be . He will explain when we come back. The 306 horsepower lexus gs. Experience the next vel of performance, and theres no going back. Lease the 2015 gs 350 with complimentary Navigation System for these terms. See your lexus dealer. All right. Very interesting story. We have a news alert regarding the sec and Insider Trading case dominic chew has it for us. This is a potential set back for the sec and brings a question what actually defines Insider Trading in the world of wall street. So this case involves a former wells fargo trader who had allegedly been trading ahead of tips given by the Research Team at wells fargo on analysts upgrades and down grades, trading ahead of those analyst upgrades and down grades on behalf of wells fargos accounts allegedly. The secs own internal judge says that this case is being miss dismissed. The reason why is important. Late last year there was a Second Circuit Appellate Court ruling that basically set forth some precedent for what defines Insider Trading. In that ruling they basically said that when a person providing a tip to somebody else needs to then have the person receiving the tip know full well that the person that provided the tip received some kind of personal benefit for giving that tip in the first place. In this case here for this wells former wells fargo trader and Research Analyst case that was not met. So again, this particular case brings more clarity to what can and cannot be considered Insider Trading in what could have broad and wide sweeping influences on what kinds of Insider Trading cases are brought in the future so bill, kelly, a very big headline coming across with regard to an sec administrative judge dismissing this case that a former wells farg dough frayeder traded ahead of Analyst Research upgrades and down grades. Dom, what you are saying is secs own judge has ruled this because of new terminology and new approach . Correct. Thats come to light . Kelly, the secs Administrative Law judge, that is the secs internal judge panel has now said that this case involving this former wells fargo trader and alleged profits made on this tip or tippee relationship does not meet those standards for being considered or classified as inn shierd trading as marked out by a ruling late last year by the Second Circuit court of appeals that said that the person providing tips and the person receiving tims, the person receiving the tip has to know that the person that gave the tip received some kind of personal benefit. Thats where this definition kind of comes into play, guys. Wow. Thats a whole new wrinkle there. Dom, thanks very much. Appreciate it. We have ten minutes left in the trading session here as we head toward the close, dow down 83 degrees. Joining us luke extra paolini. You think theres Something Else besides the threat that threatens the market more, you think china. Yes. China is the biggest concern for foreign investors. I think that the fed will do what we probably all expect to do, but we gradually in the approach but china is a big question mark for the investors. You guys have a couple billion dollars in assets under management. How much of that is in global stocks, how much is in u. S. Stocks and what do you think the prospects are . We believe when we look at it from a global point of view the European Equity market is the one with the most upside. We have a relatively strong economy, an ecb which is in liquidity, earning psych sl two or three years behind. We pretty much prefer europe to the u. S. Where we see less valuation, less positive valuation. Do you agree with the world bank that if the fed started raising rates now sooner rather than later it would have a negative impact on emerging markets . No, i dont think so. I think the key is the situation in china. I think we all know that the rates i dont think if makes a difference september or december. What is important is a gradual approach. Do you think china slows down more . I think there will be more bad news before we get something positive. Definitely we are starting to see the policies, we are starting to see i think some improvement in the housing sector as well. I think probably we are not too far away from a turning point in china. City has says its base case with a global recession, it could mean growth below 2 . What do you think happens with Global Growth here. No, i dont think that we are going to be in a global recession, we have just accepted the fact that Global Growth is stuck do you recally weaker. We have to accept 2 growth in the u. S. Is gien, 1 growth in europe is client and china will probably grow 6. We dont see the risk of a global recession right now. What do you see for exchange rates, especially euro dollar . Were watching that careful three here in the united states. There will be a little bit more upside on the dollar but not too much. The dollar is very, very expensive. Parity is off the table these days . Yes. European growth is actually picking up. I dont think there is much upside left for the dollar. What do you think of german core bin. I think it was a big surprise. The impact would be probably the kerv tiffs will be in power a little longer. A lot of interesting hangspp things. Thank you for joining us, luca. Heading to the closing count down it is coming your way in just a moment. Bob miss sanny back from vacation. We are going to have former Federal Reserve official apologizing for the feds bond buying spree. We will ask him why hes sorry now. Cing sound ] daddy lets play sorry kids. Feeling dead on your feet . Ive been on my feet all day. Dr. Scholls massaging gel insoles have a unique gel wave design for outrageous comfort that helps you feel more energized. Dr. Scholls. Feel the energy at ally bank no branches equalsits a fact. Kind of like mute buttons equal danger. That sound good . Not being on this phone call sounds good. Its not muted. Was that you jason . It was geoffrey it was jason. It couldve been brenda. Its more than a nits reliable uptime. And multilayered security. Its how you stay connected to each other and to your customers. With centurylink you get advanced Technology Solutions, including an industry leading Broadband Network, and cloud and hosting services all with dedicated, responsive support. With centurylink as your trusted technology partner, youre free to focus on growing your business. Centurylink. Your link to whats next. So youre a Small Business expert from at t . Yeah, give me a problem and ive got the solution. Well, we have 30 years of customer records. Our cloud can keep them safe and accessible anywhere. My drivers dont have time to fill out forms. Tablets. Keep it all digital. Were looking to double our deliveries. Our fleet apps will find the fastest route. Oh, and your boysenberry apple scones smell about done. Ahh, youre good. I like to bake. Add new Business Services with at t and get up to 500 in total savings. All right. Coming up on the last four minutes of trade here. The week is upon us now when everybody has been waiting to see what the fed is going to do, we will know on thursday. The question is whats the market going to do before then . And then what will it do afterwards if there is a rate increase or not . Here is what the market did today and i have just combined the dow, s p and the nasdaq all together. You can just see this definite correlation, we had a rally on the open this morning, it wasnt very strong, down 100 points at one time today and we are down 78 rights now on the industrial average, but for the day, lets see, the s p is the biggest decliner but not by much, down half a percent right now, wti, again, if i laid oil on this you would see a correlation there in terms of the trading, right around here when the market started when the stock market started to trade, but, you know, were seeing this gradual move lowering and its taking can a gasoline price was t the National Average is at 233, last year at this time it was at 3. 39. Were really off where we were last year at this time, down 1. 2 on witi crude today. The ten year yield as Rick Santelli pointed out, the ten year is back where it has been for much of this year at 2. 18, we are at 2. 17 right now, had a blip midday, but we are still right where we have been. No signals on what the tech kpek tags is for the fed rate increase or not from the tenyear yield. What has gone up appreciably, again, is volatility, the vix today up 5. 25 . Look who is back as i mention frd vacation, bob pisani. Im surprised its not moving a little more. We are going ahead of the biggest fed meeting in many years. There is an anticipation, a substantial minority still feel they are going to raise rates. The feds seem to want to raise rates. Im surprised we are not a little higher here. The market seems to be telling us that its not anticipating an awful lot of volunteering tilt in the next several days. Right. If you look at vix futures the ends of the december contract further out the numbers for the vix are lower in december than it is here, there is this little bit of elevation, but not much. What the vix seems to be telling us is they dont think the market is going to move too much other way, whether the fed raises rates or not. They are price something around 2 potential volatility in the week ahead, somewhere around there, i dont want to go through all the math with you, but thats not a lot. Thats a few hundred dow points. We have done that on a single day. I dont know if you saw the note from robert hum who is a statistician for us pointing out that today we saw re low volatility. Narrow west range for the dow since august 18. The average range since august 18 has been 400 points. Just to show you how weird things have been recently, historically in the last couple years the dow has moved 120, 125 point range on a daily basis. In the last few weeks we have seen it much more volatile than that, but that goes to my point, the market is not the trade remembers not reaching for protection against the idea that theres going to be some kind of big move in week. One way or the other. They seem to be saying we dont think anything is going to happen whether the fed raises rates or not. I find that surprising but a lot of people right now i think have been praying theyve seen a bounce all throughout the year so buying protection has not been a particularly favorable profitable move for them. Lets not forget, though, it is rash hashana, but we do wish that happy new year to those who have been celebrating it. I want to see those slides to your trip to london. Its an expensive place to be but one of the most dynamic cities in the world. Thats it with the dow down 65 points. Stay tuned now, this will be very interesting, this formal fed official who is apology for its feds bond buying spree the last several years. Thats coming up on the second hour of the closing bell with kelly evans and company. I will see you tomorrow. Kelly. Thank you, bill. We will come to closing bell, im kelly evans, the Dow Jones Industrial average going out with a loss of 63 points today, one of the narrow west trading ranges we have seen in some time. This market is a coiled spring waiting for the Federal Reserves meeting, we will get that decision on thursday. Everything kind of traegd water but moving to the down side, s p down 8, nasdaq down 16, Interest Rates roughly in place, those utilities were the only positive sector on the s p for most of the session today. Lets get more thoughts and reaction on all of this now. Joining todays panel michael san tolly is here from yahoo finance, kate kelly and for more on todays Market Action guy adami. Welcome one and all. Mike, do we have to wait until thursday and all the energy is waiting to expel at that point . It seems like t its a very narrow range, i thought the market traded a little heavier than i might have traded today. I think theres not a lot of commitment. But to me i heard bill and bob talking about the vix. Im not actually surprised its not up more because its already elevated. It never did have that relief. Despite the fact that the market has been calm and doing not much of anything for several days i think a bit has remained in the vix. Somebody is going to try to front run that thursday decision, maybe we just have a what the heck rally. I was going to ask, guy, is this one of those situation where is the fed does nothing or is doubbish or could we be setting up for a positive session . Bob mentioned there is still a lot of Unanswered Questions for them. I dont think thats necessarily the case i think everything is in place if you go by the guidelines and mandates they set forth for them to raise. As counter intuitive as this may sound i believe that if they do raise a quarter of a point the market will actually rally on that, the equity market, because at least it will show maybe weve gotten some semblance of credibility back, maybe they are on firmer ground than we thought. I think if they do nothing the market will take that as a sign of weakness, a sign of something that maybe they see that we dont see and i think you will actually see the market sell off if they do nothing. So thats probably sort of flies in the face what have a lot of people think. Thats what i think. Guy, you could certainly make a credible argument fora racina raising rates, but there is the Larry Sommers school that says dont do it now, the unemployment top line numbers are misleading, we need to see more stability and growth in the u. S. Particularly with some of the issues overseas like china. I mean, as we all know the market is expecting sort of minimal expectations of a rise, i think 28 or something at last check. So, i dont know, i would think we would not see that much of a reaction if theres no rate hike and more of a reaction if there is. No . I think we need a decision grid at this point. Its like this is like a 6 by 6 column or chart now. What do you think, guy . I think thats a great question. The way i look at it that would be my kneejerk reaction as to how the market would interpret t i understand what you are saying the Larry Sommers champ camp, but there was some hard and fast rule about unemployment. They will never get the inflation that they covet because we got exactly what i believe the opposite. I think they need to do something to show the market weve set forth this mandate, weve been talk about this september date now for quite some time, to walk away from it in my opinion would be a syphon weakness. A sign of weakness that only would sell off in the markets here but i think you would sigh increased volatility overseas which is not a good thing. One interesting thing there was a piece notice journal about this that i thought was food for thought and it came up in a couple discussions i had today, the idea of what if they raise rates and then they have to do the uturn. We mentioned it last hour. Its a great point, whether its sweden, israel, the European Central bank, any number of actually other emerging economies that have tried to raise and run r return r turn around and lowered. You lose it i think if you have to act and then unwind within, i dont know, a year, 18 months. Thats true but i think the decision that bernanke made in 11 not to raise when the ecb was doing it and basically say that the inflation signals were transient i think you might be at a flip side moment where the fed could be in a position where they say we think all this market dumb multiare the trans nant thing i just think because we talked about this for so long everyone is bringing in a complicating factor. Another one is people going back to the speech that vice chair fasher said that said dont underestimate the uncertainty by moving first. Thats not necessarily something to guys point that the market would love to hear right now. Theres no doubt that among other things we have had way too much time to think about this. Yes. Seven years. Seven years is a long is a lot of thought. Not even to mention the other question. If they raise the target can they achieve the target . All the mechanical noise around there. Its not just the federal funds rate but its different mechanisms that include trying to get researches out of the system. Guy n a sense whats happening because it has been so long is that its kind of people just have this kind of were sick of this environment and things have changed and feds should raise. Its not necessarily an argument that looks at the prime age to employment population ratio, the declines were seeing, those import prices even if you strip out gasoline last month. You could make the argument if you werent so sick of making the argument that this wouldnt be the best time to raise rates. Yes, 100 , but in a lot of ways the voluntarily timt that we are all talk being now and all the things that you mentioned, their attempt to get the numbers to where they want them are all failed attempts. You can lower rates to zero but you cant make companies hire. Companies have learned to do more with less. Some of the unintended consequences of our fed actions they are getting the exact opposite of what they desired and the volatility that scares them and may keep them from this hike on thursday is the volatility that in a lot of ways they are responsible for which is a longer conversation, but mike just mentioned it, there is never going to be in the environment we are in right now there is never going to be the right time to raise. Since you have been talking about it for so long why not do it now . Again, get back any semblance of credibility that you may have. All right. We will if you tell the fed on the shelf for the moment and get over to bob pisani who is at the alibaba trading post here at the Stock Exchange i should clarify. The company under pressure, barrons said the stock could fall another 50 and that did take another slice out of shares today. It did. I think the important thing is its the oneyear anniversary, it was september 19th i stood right here in front of jack maut. For all the heat this story generated the impact was relatively modest. Were down 3 . Thats not far from a new low for alalibaba. 26 million shares. The truth is put up the 52week chart for alibaba. We peaked back in november its been a slowalibaba. The important thing is a couple of key points on the metrics, they went public september 19th, 68, they opened at 92 that day, i will never forget, i was standing right here. The high was 120 that was in november and today we are at 62, its been a slow decline here. For all the points they made about alibaba, the fact that there was a weak economy in client fashion increased ecommerce competition i think the key point when i was talking to people today about it is whether or not the decline weve been seeing, slower decline in retail sales is due to concerns like the stock markets problems in china or whether there really is some kind of more serious longer term down trend. Thats going to be the most important thing for alibaba, the strength of the consumer in china. Thats what we still dont know about right now. Bob, thank you very much. A walk down memory lane. There are a couple of Company Specific factors but whats also really interesting to me about this story is the chill its put on tech ipos this year. 11 of total offerings. You have the renaissance that dom hit this last hour, the renaissance ipo index is down 10 year to date. You wouldnt know from all the focus that uber gets, for example, just how concerned some of these private companies are what happens when they try to go public. People really like to focus and i can say this as a tech ipo reporter or veteran, they love to focus on its etsys and ubers of the world. Perhaps in the ipo and in the tech sector it was a temporary top or a plateau because there has been kind aflac of activity and there are all these small and mid cap stocks that make up a tech ipo market that may not feel like its a good time right now. Look at alalibaba, twitter, vox. And this is what we talked about on friday. When he said look at the goal between Public Market and private market. The big ballyhooed deals did not go that great. You also have the sense for the big kms opt to go stay private the ones that do file are the junior varsity. Do we want to own them . They are all in these categories at this point that are kind of thought to be these winner take all areas of the market. Look at what twitter has been through. There are a lot of legitimate criticisms of their business model, the stock hasnt performed as people would like, but really they have this incredible user base. We are on it right now, you know, i mean they keep updating the user interface, now it doesnt automatically load the tweets. I like to see the notifications, now i have to refresh the page, its driving me crazy. The product has to work thats an example of what their problem is. Absolutely. But think still have captivated a pretty enormous audience, you would think it shouldnt be a bridge too far to monetize that and continue growing. They dont have the formula yet and they are being punished and thats an established company. Guy, before we let you go i would love your views here. Have Public Markets become too skeptical of some of these private companies and their Growth Potential . Are there going to be unicorns stuck in Silicon Valley . I think the volatility that were seeing in asian markets are definitely contributing to so fear. In twitter it was only five years ago or so where everybody was calling for the head of Mark Zuckerberg and facebook the stock was mired in no mans lands. It required what seemed to be a pretty easy fix in retrospect for that stock to go into ascension. I think at which time sr far too valuable property. Yes, they have some problems, no doubt, and people a lot smarter than me are going to figure them out, but i think they are infinitely fixable and i think six months to a year from now we will say twitter in a lot of ways in terms of the stock mirrored what facebook was five or six years ago. Fair enough. That reminds he of the argument bill miller who was buying into it was making for twitter. Guy, also on alibaba how would you trade this name now . Bob just said its been an orderly decline. Respectfully in stock has gone from 120 to 60 in less than a year. It might have done so in seemingly an orderly fashion but its been cut in half and has exposed a lot of the warts to yahoo. Marissa meyers walked in at the right time in terms of the stock along with alibaba yahoo went pair a bowl lick almost. How i would trade it . All roads leap looed from alibaba and yahoos demise to the gains were seeing in google. I think google is a valuable property. Interesting point, guy. Thank you. Be sure to stick around and watch more of a guy coming up with the fast money crew at 5 00. They will be talking about one stock thats higher on reports. Apple may be look to go acquire t the details ahead at 5 00. A former fed official who once apologized for the bond buying craze says the fed has been missing market clues for a long time. He will join us next with what he expects with the feds meeting in week. Ahead, the fight for air space is pitting two of the biggest defense names against one another, the Battle Ground is not the usual territory, either. Youre watching consumnbc. Now you can, with the luxuriously transformed 2016 lexus es and es hybrid. Sometimes they just drop in. Always obvious. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Announcer babies who are talked to from the time theyre born. Are more likely to have a successful future. Talking and reading to children in their first years has a huge impact on what they do with the rest of their lives. The fewer words they hear, the greater their chances of dropping out of school and getting into trouble. Talk. Read. Sing. Your words have the power to shape their world. Learn more at first5california. Com parents here is a look at how the sectors performed in the 62 point dow selloff today. In the s p materials were the hardest hit down 1. 3 , energy down 0. 8 , Consumer Discretionary and industrials also getting hit today. Utilities were the lone bright spot for most of the session. Im sorry, thats what our next guest wrote in an op ed piece two years ago, the former fed officials apology for the quantitative easing, with the big fed decision on tap for thursday will main street benefit this time . Andrew houzar managed the Purchase Program that was the sent officer piece of qe 16789 welcome to you. Thank you for having me. What are your thoughts on thursday . Well, i would never say never, but i would be shocked by a fed rate hike on thursday. I think could you talk about done i wishness of other Central Banks, appreciation of the dollar but i think what you have is a fed that has been become hostage to the financial markets. This is a fed that has been jaw boning since 2010. Talk being how it will create a wealth effect by bumping up stock markets and other markets and i think which it kind of has. Which it has. So the trick is how does it pull away. I think the volatility in august will give pause to an already cautious fed and we will see it push back and probably at the earliest do december. Do you think that by doing that that the fed is being unnecessarily cautious . That they are doing actual harm to the economy . Yeah, i mean, i think the genie is out of the bottle on that. I apologized two years ago because i think you have to look at this the way that i used to look at it at the fed which is cost versus benefits. On some level the Monetary Policy stimulus thats been done theres debate within the fed about how much benefit its done for the economy especially for the average american and at the same time in terms of costs you see a lot of perhaps longterm costs but i think a lot of Short Term Financial engineering in terms of stock buy backs, we are going to see probably over a trillion dollars of stock buy backs this year, more than earnings of the same companies during the same time. I think the cheap funding is causing a lot of unproductive games in the markets. Andrew, you contended that the fed has become a little bit too friendly, maybe even hostage to the interests of wall street. Can you talk about your view of that as someone that actually worked there and how thats progressed since you left . Sure. I worked on the floor, on the Trading Floor in the new york fed running the mortgage desk. The feds job historically has been to monitor the markets, be close in touch with all the banks and all the trading desks, but you have to look back at what happened in the ted. The fed expanded its role dramatically in the markets in a very short time into a lot of markets, Mortgage Backed securities had never bought one mbs in all of its listly thats where y. They brought you in correct . Yeah. Basically its forced the fed to actually solicit a lot more input from market participants. You already had a somewhat necessary conversation happening between wall streets and the fed, but i think in terms of what you have now in terms of all these committees that have been created, in terms of constant polling of wall street expectations, you really have i think on some level an independence that is unfortunately dissipating in terms of the us central bank. Mike. If you could speak to what we were touching on earlier which is that th debate about how the fed could achieve a raising of the fed funds target rate, in other words, the mechanical means it has to employ right now with wall street right there with the banks interacting with reserve levels and things like that, can it pull it off . Is it unproven . How do we know its working . The fed rate in particular historically was impacted by reserve levels, under green span it started being more of a targets. Theres not as much short term issue in we can raise the fed fund rate. The trickle down impact is a real question. This is the huge question we are not really talk being which is how is the fed going to deal with 2. 5 trillion of reserves in the system ultimately reverse repose, interest on excess reserves, these are entirely unproven instruments. Perversely we could see the fed at some point even if these tools do work, particularly ioer, we could see them paying wall street banks tens of billions of dollars not to lend. We saw them maybe just on their excess reserves. If i wanted to be Super Critical of your criticism, andy, all i would say is that your background coming from being involved in the mechanisms of how the fed is doing this and dealing with its Balance Sheet is all well and good but is it a theoretical understanding of the relationship between Monetary Policy and its effects on the real economy . In other words, is my criticism does it fully take into effect the relationship . I mean, my criticism on some level listen, these are all i have Great Respect for the people inside the fed, i have a lot of friends still, these are smart well intentioned people. I would argue that a lot of issue with the fed is that its a hyper academic understanding of the markets. In many ways i think having worked on wall street as a managing director and inside the fed which is kind of unusual background i think i brought a bit of a more practical understanding. I think theres even a cultural conversation here which is obviously a much larger conversation we could have another day. You already mentioned that you think they wont raise Interest Rates on thursday. But i take that your point of view is that they should raise Interest Rates and if so by how much . I was in the school that should raise Interest Rates months ago. On some level the easy money policies arent arent i think making a meaningful impact for main street, impact enough compared to the costs. I mean, i think it has to be incremental, the markets would be shocked, right, are going to be shocked potentially. If they had a hike at all. If they had a hike at all. You have to start with 25 bips, you have to do it slowly. The fed has been cautious about saying its going to be one and done if we raise t i think they need to introduce more uncertainty into this world. We need to get back to markets that really trade on fundamentals rather than techniqueless. Right now they are plenty confused waiting on that decision. Thank you so much. For sharing your view with us today. Thank you for having me. Thats andrew huszar. Facebook working on bringing Virtual Reality to your phone. Its putting its 2014 acquisition of oculus vr to use. Excellent looking below the surface, researching a hunch. And making a decision you are type e. Time for a change of menu. Research and invest from any website. With e trades browser trading. E trade. Opportunity is everywhere. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . The dow starting off the week to the downside, down 62 points, the s p was down 8. Here are some of the hardest hit names on that dow, visa down 1 , cisco 1. 25, ibm down about the same and microsoft down 1 today. Facebook is looking to bring Virtual Reality to your cellphone, john ford has those details. It seems there is a new front opening up, 360 dege video. Wall street journal reporting that facebook is working on a Smartphone App that will let you feel as if you are inside the action. Its not clear when that app might be available or if facebook will end up releasing it at all. It shows while its ocul uchlt s unit continues to work on experiences they are experiencing on low end smartphone experiences, too, facebook is not alone in bringing to bring vr to smart phones, google in may announced the jump camera ring which has software stitch that video together. They plan to host that on youtube. Gopro is going to send its first rig for 360 degree video in october. The bottom line is its a lot cheaper for consumers to view this through a phone for the first time than spend a lot of money on a specialized headset. John, forgive me. Okay. I get the headset thing with Virtual Reality, but what are they doing thats not going to involve a headset . Imagine you have this video right on your phone and you put your phone in front of your face. If theres something thats been recorded with this 360 degree array as you look around the video changes and its like you are in the space. You have to imagine kind of closing yourself in a little hood perhaps with the camera in front of your face, its like you are looking through a helmet at a different world. Basically what happens is you can hold the phone as a replacement for wearing something on your face . Hold the phone. Its virtual real sniet what do you guys think . Facebook is in this zone where it gets a pass on why are you doing this . Obviously to make it more immerse sieve speaking of our earlier conversation on how they beat the pants off of at which timer. And they deserve the benefit of the doubt on this. I guess, john, this is all about keeping you on their apps longer and making richer still their experience. I could imagine some Practical Applications for this. Lets say you are house hunting and want to show your friends the house you might buy on facebook or you are looking at a beautiful vista on your vacation somewhere. Think of how many silly videos are probably already on the facebook feed a adds another dimension to that. Suppose you want to be in the room with the cat who is playing the piano. Exactly. Virtual reality. Youve hit on t when it comes to real estate, you dont want to driver across town to see 8, 12 houses in person. Why not do virtual walkthroughs, pick the best two or three and visit just those. Facebook has also found first in photos and now in video that the richer the experience, the visual experience, the stickier it is and more people engage, thats why they are invest nothing Virtual Reality, if anybody stands to benefit from a rich experience its facebook. When can we expect to use this technology . You can use it in a way now, samsung has a rig in partnership with oculus that lets you put the phone on your face but more and more companies are working on it. Surely with gopro coming out with this 15,000 rig in november which you talked about last week, next year we will see a lot more of it. A glimpse of the future. Thank you so much. Time for a consumer news update. Lets flip over to sharon epperson. Here is whats happening. President obama will raise concerns about Cyber Security with chinese Vice President xi jinping during his visit to the white house later this month. This according to josh earnest who made the comment aboard air force one. For the first time in her Campaign Democratic president ial candidate Hillary Clinton addressing the issue of Sexual Assault on college campuses. She called it an epidemic in a speech at the university of northern iowa. Her plan calls for a support network for survivors and Disciplinary Proceedings for both accusers and the accused. At least seven people were killed after a crane at a bridge construction site collapsed in india. The giant piece of equipment fell into the river ganghis in the eastern part of the country. Those killed were workers in a boat on the river. A female power lifter from russia pulling off an impressive stunt in an attempt to set a national record. She pulled a 17 ton tram car for more than 6 feet. She says she has been in training for six months. Its unclear whether she set the record. Thats a cnbc news update at this hour. Back to you. I almost pulled my back making the bed the other day, sharon. You dont even want to see what contraption is going on with my sprained ankle and crutches behind my. I dont know how this woman did it, but pretty amazing. Sharon epperson, thank you. North tlop and Lockheed Martin are in the war to be the dominant eyes in the sky, one was a manned plane, the other a nonmanned one, jane wells, who is going to win . [ inaudible ] y. With centurylink you get advanced Technology Solutions. Including cloud and hosting services all from a trusted it partner. Centurylink. Your link to whats next. Awe believe active management can protect capital long term. Active management can tap global insights. Active management can take calculated risks. Active management can seek to outperform. Because active Investment Management isnt reactive. Its active. Thats the power of active management. Its how you stay connected. With centurylink as your trusted technology partner, you get an industry leading Broadband Network and cloud and hosting services. Centurylink. Your link to whats next. Here is a look at how we finished the day on wall street. A look at crude this, one really actually in a way took the market down with t it was down another 1 , the dow under ended up down 0. 4, same for the s p, nasdaq a little better. Apple held up well today a lot of people watching that correlation that persists between stocks and the price of oil as we wait for the feds decision thursday. Now the nations two largest pure play Defense Companies are battling each other over aircraft, manned and unmanned, its game of drones versus humans and both investors and taxpayers need to pay attention, jane wells has that story. Can you hear us now . Yes, i can. Nor tlop and Lockheed Martin are battling over two different aircraft. First eyes in the sky. It is manned, it needs a pilot. Now the unmanned global hawk from tlor tlop grum minute is up there right now, it has convinced the air force to let it test out some of the same surveillance equipment on the suchlt 2 so it make take over hook heeds job. They say nor tlop is ex stalling all kinds of bolts. It will make it an Intelligence Community that has a requirement, and have it talk back to the needs that have Intelligence Community. Now, tests begin shortly. Lockheed, however, says the u 2 has a proven track record but the global hawk can fly longer because it is unmanned and the two companies are about to face off over an even bigger contract, the new air force bomber, potentially worth 80 billion. Many analysts say this is a must win for northop if it wants to stay in the manned aircraft business though there are some reports that the bomber could at times be unmanned. Imagine an unmanned newly updated b2. Wow. Back to you. Jane, how much of a departure is this for all of these Unmanned Aircraft discussions to even be happening in such a way that they could threaten the future of commercial manned aircraft . Well, here is the deal. These unmanned military drones are so complex and so expensive its not like they are going to take over. They are not going to deliver packages for amazon, but when you talk about unmanned cars it is not inn consist receivable that you could at some point see partially manned aircraft with people on board or cargo on board. There may be at some point in the future the technology inside, the global hawk, for example, could be put in the right seat of a long haul cargo aircraft, one pilot on board and one down on the ground. Thank you for now. Our jane wells. What does this battle mean for the Defense Sector . Lets talk to peter after plant, he is aerospace and defense analyst. Peter, welcome to you. Does this come down to lockheed being upstet that nor tlop wants to push a lot of Drone Technology. I mean, its still a battle. The uav market or drone market still a small percentage of what were spending on for manned aircraft. So as you mentioned or jane mentioned that basically the u 2 has been flying over 50 years, it is still going to have a role Going Forward t has the capability of flying out to 2050 based on the last upgrades. I certainly think the global hawk is going to be more competitive once they start putting the better sensor capability on board. Where do you think more of the focus is right now . Is it still the traditional military space for these Companies Like the huge projects, the huge contracts, or are they look to go now deploy this technology in more of a commercial way, especially the Drone Technology . Yeah, the commercial market i still think is going to be very small in chair son to the military uav market, military uav is 10 currently of our spending on our weapons programs, thats going to continue to grow, but theres definitely going to be ballot ongoing between the role of unmanned versus manned aircraft. And with regard to nor tlop moving forward in this face, there are smaller players like dgi that come to mind. Are you going to have to start following the Drone Industry separate or is this going to be a part in change in aviation and mobility n terms of your Coverage Area what do you think the next five or ten years look like and does lockheed eventually get on board . The secret out there about lockheed is that they actually have more classified uav programs than they currently do in terms of the known programs. So even if the u 2s role was diminished Lockheed Martin did s. Going to be just fine in the uav market. I still think the military market in terms of the overall size is where most of the focuses going to be for a long time. Peter, thank you for joining us. Fascinating. Thank you. Thats peter ah r rmand. The exhaust will be the backdrop for the battle of billionaires. Mark cuban telling cnbc he could beat trump. 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See your lexus dealer. Fascinating. Quinoa . But it is not the device that is mobile, it is you. Real madrid have about 450 million fans. Were trying to give them all the feeling of being at the stadium. The microsoft cloud gives us the scalability to communicate exactly the content that people want to see. It will help people connect to their passion of living real madrid. Welcome back. Mark cuban telling us over the weekend he would crush donald trump if he ran for president and mark cuban joins us now. He has starred in a reality show, he is a billionaire and now hes talking seriously about running for president. Are you there, mark . Yeah, im here, kelly. How are you doing . Great. Welcome to the program. We appreciate your time. The question foremost on everybodys mind as we get closer to 2016 is how seriously are you considering a run for president . Not at all. Im not going to run. I dont really have any interest in running, but i do give donald a lot of credit for changing the game. I mean, we are at the point up until now you had to be a perfect candidate, you couldnt have had a drink growing up and i think donald changed that is correct he made it okay to be an imperfect candidate and i think thats a good thing. To go back to the genesis of this whole discussion, mark, correct me if im wrong, you were saying if it was you versus trump you would crush him no doubt about it. Yeah, theres no question about t i think what it has come down to i think hillary has blown it, i think theres no chance for her to win an election, i think she has just lost her shot. I think when i said i would crush trump its less on dompd and more on the Republican Party. The Republican Party really requires all their candidates to conform on all the social issues and i think that is just so out of touch with whats happening in America Today that whether it would be me, whether it would be a mic bloomberg, whoever else it would be potentially even joe biden, they are going to crush the republicans and i think thats what it comes down to. In this case dai and age you cant just have one party line, you have to take into account whats going on in the world. Yeah. Well, we have seen this before, ross per row got a large share of the popular vote when he ran in 92 its not out of the question for that to happen again. If you had to vote today, if you were going to the polls and will to cast your vote who would it be for . There is there is no reasons to go into hypotheticals, we are a year away, everybody is calling names and responding to threats or whatever it may be. I mean, i wouldnt pick a candidate right now. Thats exactly t you mentioned youve just dismissed the whole gop field, youve said that Hillary Clinton has flown blown it. Who does that leave . We have over a year to go. I dont think the game is we havent gotten into the final stretch. I think theres still candidates to come, hopefully on the democratic side, and if all we had were the candidates that we have today i think, again, once they really start getting into the issues and its way too early for them to do that, they would be crazy torques then we will start to get a better understanding, start to get a better understanding of who legitimately can be in the office. Right now its just its all, you know, social media driven. Whats the best for a headline, whats the best in 140 characters. They are just playing checkers. So there is no reason for them to do otherwise. So there is really no reason to try to pick a horse at this time. Do you think that the reason why a candidate who is a billionaire, whether its donald trump, whether its yourself appeals to people is because in a sense its not about political dog ma its about success and sometimes success means just having to make the right call in different situations, having to negotiate with different partners and deal with a bunch of different interest groups. Without question. To get to where donald is myself, michael bloomberg, whoever it may be, im not saying you ever to be a billionaire, but to get there you have to have gone through challenges and had levels of success and done and been pretty much the antithesis of a politician. There is no one right answer to every question when you are a businessperson like there is for a politician. You dont talk to your poll officers before you answer a question. You dont want to consultants before you answer a question. You look at the problem and you try to come up with solutions. I think donald and Carly Fiorina and dr. Carson have done a better job of that than the traditional politicians and we havent seen anything of that caliber on the democratic side. Right. It sounds like the cuban field at this point would come down to a carson, to a Carly Fiorina who a donald trump who on the front page of the wall street journal today the entire story is about how much he is not operating with a traditional political approach. And thats right. I think the ultimate the ultimate irony, kelly, right now is i would bet any amount of money that donald trump has spent the least amount of money of any of the candidates. Without question. I bet he has spent so far less because he is not approaching it in a traditional political sense. Hes not hes not just turning to a pollster, he is not buying all the polls or turning to a political consultant to get answers, as best i can tell from the other candidates thats exact compactly how they approach things and i think that in and of itself is a big deal and the irony is great in this run. Again, mark, people love the candor, whether it comes from yourself or from him or whomever, but at the end of the day there needs to be a certain prerogative when it comes to what is the point of being president . What are the policies . What is it that you want to get done . What are the most pressing things from your point of view . I mean, are we talking about tax reform, are we talking about relationships with other countries, trying to address the migrant situation in the middle east . Is it something specific that needs to be tackled here . I think there is a very specific list, income equality is a big issue, you know, no business, particularly a retail business, needs the uncertainty of some type of social unrest happening outside their door or the potential of their building getting burned down so we need to deal with that. We need to deal with trust in the markets. If you make 30,000 a year and you bust your butt to save 100 a month for your future or your childs future and put it in the bank its going to earn no interest whatsoever and in five years you are going to have 6,200 or Something Like that. So, you know, people who are really working hard in this country, really cant put themselves in a position to ensure their future because they dont trust the stock market, they dont understand the stock market, so they have really got no place to put their money, their hard earned money to earn a return. Thats got to be the very first thing and that has nothing to do with immigration, that has nothing to do with really anything but trust in the markets. Look, everybody you bring on on a day to day basis, kelly, nobody. Really staurns whats going on and if you are just somebody who busts their butt at work and is trying to figure out the best way to protect their future, you are not going to put your money in the stock market. You just dont understand it or trust it. Thats issue in number thats the Biggest Issue we face, income inequality and preparing fort future. That explanatory role is to important around here. I know you spoke with our eamon jafrs. First of all, a fascinating email exchange over the past week or so one of the things i was trying to get out in that piece that we have on cnbc. Com about you and your comments is this idea of a three come maam potus. Im a one comma guy myself but you talk to three comma guys all the time. How many build flares are in this country who might be looking at donald trump and saying do you know what, i think i can do this . I tubing a lot more one comma guys than three comma guys, those are my friends. Good. I think what donald is demonstrating and i made the point earlier that he is spending the least amount of money of the candidates. I think up you know, when we look at a billionaire candidate we think they can afford t they dont need to take money from special interest groups, but with the success donald has had in understanding how to use media rather than having to buy media, i think, you know, we will see other candidates that are businesspeople that understand social media, understand traditional media, but can watch and see what donald has done and realize you dont have to spend 100 million, you dont have to spend 500 million like candidate or more like candidates did in the 2012 election. And so i think, you know, not i setting a tone in being a freethinker, a free speaker, whether you agree with him or not, hes also really demonstrating that if you take a different approach, at least at this point in the process, if you take a different approach than the traditional get elected and have a whole staff of consultants and analysts working for you, you can do it for a lot less money. And i think to me, you know, the candor is key. The fact that hes an imperfect candidate is key and sets the tone. But also the way hes running the race means that anybody that understanding media today and has a platform can run. And i think that is a big deal. That is for sure. And again, mark, yourself included. You are not getting involved in the 2016 race . No. I mean, i think i can have a bigger impact right now in doing a lot of the other things im doing in terms of ive invested in well over 100 Small Businesses and talking to school kids and so many ways i think i can impact society. And i just dont have the temperament. At least not at this point, to be a politician. Mark cuban, thank you for sharing your thoughts with us this afternoon. Thanks kelly. And eamon javers, thanks to you as well. Much more closing bell right after this. Isnt it beautiful when things just come together . Build a beautiful website with squarespace. A new york regulator is starting a Data Retention deal with symphony head investors and well hear more about it after this. Marry thompson joins us with the details. How big of a deal was this piece, mary. I think it is an important deal in the introduction to the world so to speak. The new York Department of Financial Services had feared the users ability to delete instant messages would hinder future investigations into Insider Trading or rate rigging. So they will keep all messages for seven years. And golden sacks will be one and others have agreed to storen corruption keys with an in dependent custodian. Goldman keeps information for longer than seven years so this is an added layer of protection. In a statement, acting superintendent said this is a critical issue since chats and other electronic records have provided key evidence into investigation of wrongdoing on wall street. It is vital that regulators act to ensure that these records do not fall into a Digital Black hole. The four banks among those investing 66 million in symphony whose chat platform see as a rival to the bloomberg terminal. It was called a valuable asset and thousand happy to work with regulators. Back to you. Thank you. What is interesting, they might as well get ahead of this one, so several years time when the feds are going after them for information they are not trying to deal with the issue then. Absolutely. And this is a topic today. And there is discussion about the im chat room investigates, including the 4 x rigging and libor scandals. And the journal had an interesting piece on this today on trader speak. The one thing that i thought was weird was bip. But a tony means 500 billion and that was new to me. It seems like the authorities want to make sure this doesnt introduce regulatory problem but as they look for banks and other institutions to buy on to the new platform, this was probably a big hurdle for them, the lawyers to say were not going to have a lesser standard and it wont be considered the same kind of communications. And they called it the bloomberg killer and wall street banks are behind it and it is cheaper than the cost of that messaging service and it could go to other kinds of businesses. And while were at it. This might be the i. M. Version of brad katzaamma and it is a war on bloomberg, founded by a former bloomberg executive. A lot of competition in the space. But it doesnt have the analytics so you know how much people value that stuff. Thank you. Much more on that. That does it for us on closing bell. Coming up on fast money, why they are saying to go long on bonds ahead of the fed decision. We hand it over now. Everyone loves the picture i posted of you. At t reminds you it can wait. Its more than tits security and flexibility. Its where great ideas and vital data are stored. With centurylink you get advanced Technology Solutions from a trusted it partner. Including cloud and hosting services all backed by an industry leading Broadband Network and people committed to helping you grow your business. You get a company thats more than just the sum of its parts. Centurylink. Your link to whats next. My name is watson. Im helping doctors keep people healthy. Take ted here. Im pulling together data he shared from his wearables, Health Records and family history, so we can analyze it. Hes doing everything right. For the most part. No pain, no gain. You are a beast, ted. My name is watson. How can i help you . vo wit runs on optimism. Un on . Its what sparks ideas. Moves the world forward. Invest with those who see the world as unstoppable. Who have the curiosity to look beyond the expected and the conviction to be in it for the long term. Oppenheimerfunds believes thats the right way to invest. In this big, bold, beautiful world. Fast money starts right now. Live from the nasdaq markets overlooking time square. Im melissa lee. The traders are tim seymour, brian kelly, and guy aamy. Bonds on the volatile market this year. And where alibaba might head for the doors. Herb greenberg weighs in. But to the top story of the day. Apple is on pace to beat the iphone first week record. And while that may sound good, it is what they did not say tha