afternoon, the outgoing chair now of the democratic national committee will not gavel in the convention, which is expected to begin an hour from now. this amid the fallout from wikileaks' release of thousands of democratic national committee e-mails showing officials favoring hillary clinton over bernie sanders. pro-sanders protesters are already out in full force in philadelphia. we'll take you there live for the latest developments. >> meantime, we've had strategists come on this program and say that the tech sector looks inexpensive right now. but looks can be deceiving. and we're going to tell you which single stock is making the entire sector look cheap. we'll give you three guesses. you'll probably get it on the second one. >> we've also got earnings coming up, from gilead, las vegas sands, express scripts, and texas instruments. we'll tell you what to expect from those reports after the bell. >> yeah, we have just an absolute deluge of earnings coming out this week. it's going to be a very, very busy week for earnings. but we start today with a deal. you've heard about it no doubt by now. verizon buying yahoo!'s core business for just $4.8 billion. andrew ross sorkin spoke earlier with executives from both yahoo! and aol. what'd they say? i'm sure they were thrilled, right? >> hey. thanks, bill. yeah, we did have a number of conversations earlier this morning, trying to make some sense of this transaction, which tends independence, one of the most iconic companies in silicon valley. when we put it to marty wall vin and tim armstrong on the verizon side and said what makes this thing work, here's what they had to say. >> for us, the yahoo! deal and the yahoo! relationship is exactly what you guys have been asking us about for years, which is, how do you get more scale? and i think between the team at verizon and the team at aol and the team at yahoo! we will set the business up to compete at a completely different level than any of our business have said able to do alone in the past. >> of course, there's been a lot of criticism leveled at yahoo! over the years and at melispol meyer. but when we asked her about that criticism and whether she considered calling the company a failure, she wouldn't have it. >> i think when you look at it, it represents the fact that verizon is recommending tremendous value here at yahoo!. and so you know, it was a very proud day for us. we're excited to be the one achieving this operation from the alibaba stake, but doing it in a way that really sets up the strategic business for further synergies and opportunities and acceleration. >> one of the big questions has been what the role of marissa mayer will be in the ongoing company. we have put that question to tim armstrong who was noncommittal, but this is what marissa mayer said about what she hopes her role will be. >> i certainly plan to stay. i love yahoo!. and i want to see yahoo! into the next chapter. and tim and i are old friends and colleagues and i very much respect him and am looking forward to working with him again. >> we will see, of course, where she lands. the stock, we should note, down about 2% thus far on the day. there are still big pieces of yahoo! that will exist in what some are calling a stub company. alibaba, yahoo! japan, and a portfolio of patents the that is still up for sale. that could fetch as much as $1 billion, the not more. a little more guessing about where all of this goes ultimately, guys. >> i think it's fascinating, andrew, that marissa mayer wants to stay on. does that have anything to do with the fact, if booted, i think she gets a $50 million payout if that's a result of the deal. >> $57 million is what -- >> but who's counting? >> -- is what her severance deal is worth. all in, if that were to pass, she would get about $218 million for the last four years in office. i think, genuinely, she would like to stay. i think, genuinely, she wishes she could have a couple more years to see this thing play out. unclear, however, of course, whether tim armstrong, friend or not, will have her on. maybe, perhaps, she stays for some period of time. we'll see. >> but you're saying, andrew, his decision to keep her on or not is $57 million decision? >> that is the cost of the decision. yes. >> yeah. you know, the metrics involved in the history here, when you think about it, at one time, it was $125 billion company. microsoft offered to pay $54 billion eight years ago. that was turned down as being too low. i mean, now it goes for $4.8 billion. at least the core assets here. it's just a breathtaking fall from grace, right? >> it is a breathtaking fall. we often do, by the way, look back at that microsoft transaction and say, big mistake not to take that money. worth noting, by the way, that that also included the alibaba piece. and back then, they owned more of alibaba than they do today. back then, they owned a little earlier than that, even, they owned 40%, at one point, of alibaba and sold down that stake. so it's a little bit harder -- it's not an apples and oranges, it's not -- you know, it's knee-jerk, we like to say it. but the reason why i think we're all so focused on yahoo! is it was such an iconic company. it represented the birth of silicon valley, the birth of search, and the internet in so many ways. and i think there are so many people in the valley that would love to see it restored to glory. >> we'll see what happens with the remainder of those yahoo! japan, those alibaba holdings. andrew, for now, thank you so much. andrew ross sorkin. >> let's get to our closing bell exchange from this monday. joining us, james mandalay at post nine. george brady checks in from chicago. and cnbc market analyst, steve grasso of stewart frankel is also there at post nine. steve, today it's about oil, as it continues to fall, it takes equities with it. how do we determine -- i mean, from one day -- one day it's going to be the british pound. then it's going to be bonds. today it's oil. i mean, how does the market decide what it's going to pay attention to? >> well, having said all of that, bill, you make it sound like it's a negative picture and the market is still at all-time highs. so i think if you're paying attention to oil, oil is in oversupply. you have nigeria coming back online, you have libya coming back online, canada coming back online. so if you're looking for oil to be bid up, you're probably looking in the wrong direction as far as a proxy to the market. i would look for that m&a, how you let off the shell. that's a bigger indication of where the market's going. even though the market's a little bit off today, i think people are worried about being caught short in a prospective m&a takeout story. so that will keep the market a little bit on its heels. having said that, there's a lot of people that don't want to buy the market at all-time highs, and hence, you get a lot lowner volume and a lot lower in the participation rate amongst investors. >> john manley, i see here you still think europe is a superior value. is that so? >> it's a better value. whether it's better in the next three or four months is another question. but i think there is better value there. i think the united states are slightly rich. but i think europe still offers some good value and i see very good value in the midcap sector here in the u.s. >> john brady, another dismal treasury auction, that two-year note auction left -- what was it, 60% of the auction went to the dealers. nobody wanted to buy that stuff. i mean, you have to go further out, which is sort of counterintuitive. you have to go further out to get some band in these treasury auctions these days, right? >> that's right, bill. and the market's a little bit susceptible here on the front end of the curve. we have a fed meeting later on this week. most participants think it will be a nonevent. we at r.j. o'brien think the fed might be a little hawkish, which may have driven the sloppy auction, considering june economic data was pretty good. hourly average earnings were at 2.6% year over year, hourly average at 2.3%. both core cpi and cpe deflators are above 3.2%. so the fed may reintroduce themselves and the possibility of a rate hike between now and september, maybe after the election season, and thus two-year note yields at 70 basis points are still 40 basis points below where they were last december when the fed hike justed 25. so there's little value in twos right here. >> john, you agree with that in terms of the likelihood that the fed could start, and it probably already has, sounding more hawkish here? >> i think they will. hawkish? i don't know if that's the right word. i think they'll be talking more about the potential for raising interest rates. the trick is to see how quickly they do it. they really don't want to type. i think i know exactly when the fed will raise interest rates. and that is the day they think they can do it without being tightening or adversely affecting the economy. the fed wants to encourage growth, not discourage it. that's the key question. >> but how can they raise rates without raising rates? >> what happens is the economy gets stronger and it can buy higher interest rates. my wife and i bought our first house 30 years ago because the mortgage rate was down to 12%. we thought that was incredibly cheap. hopefully we don't get back there, but the rate is a moving target. the stronger the economy, the higher rate it can take. i would like to be able to see if they could raise rates. >> it reminds me -- think of the dovish hike from september. that was all the rage. the fed was doing a dovish hike -- >> it was the beginning of a series of hikes. we were going to get four of them this year. >> that's right. maybe that trying to have it both ways, if you want to call it that, is still all the rage. >> meanwhile, steve, we've got earnings, earnings, earnings. i mean, a very heavy slate. what are you seeing any opportunities right now? >> i think if you look in the retail space, we see -- i'm personally long jcpenney. if you look at the retail space, the effect of sears maybe not doing so well or a liquidation has had a beneficial effect or tailwind an as you would for a lot of other retailers. those have been beaten up in the beginning of the year. i think you'll start to see some tailwinds continue for those names there. as far as tech, i don't know. it's kind of a mixed bag for me. i wouldn't really play tech and i wouldn't play financials right now. >> why would the financials -- steve, real quick for you. >> just what john was saying. i don't think you're going to see a rate rise. and if i was forced to play financials, i would go regionals versus the big bracket names, because i think they are still the target of government and anti-political stance and everything else. >> guys, thank you. appreciate it. see y'all later. >> we've got about 50 minutes still to go in this session. as mentioned, the dow is down 111 points and some of the biggest decliners are chevron, exxon, today's oil prices briefly went below $43 a barrel. the s&p down ten points. the nasdaq is also down ten. coming up, we'll talk tech. why stock valuation in that sector look cheaper than they may actually be. our mike santoli has those details for us. also ahead, drama in philadelphia and that democratic national convention, well it really hasn't even begun yet, but new details on who's going to gavel in the dnc. and on those growing protests outside the convention. we'll bring that to you, next. you're watching cnbc, first in business worldwide. before taking his team to state for the first time... gilman: go get it, marcus. go get it. ...coach gilman used his cash rewards credit card from bank of america to earn 1% cash back everywhere, every time. at places like the batting cages. ♪ [ crowd cheers ] 2% back at grocery stores and now at wholesale clubs. and 3% back on gas. which helped him give his players something extra. the cash rewards credit card from bank of america. more cash back for the things you buy most. - diversity isn't just important for your financial portfolio. it's also important for your life. celebrating, welcoming, and surrounding yourself with people of all kinds is an investment in both you and your community, and we're all the richer for it. is an investment in both you and your community, enis really built into theat foundation of the company. whole foods market is engaged with pg&e on many levels, to really reduce energy and reduce our environmental footprint. for a customer like whole foods, saving energy means helping our environment, and we can be a part of that. helping customers save energy is a very important part of what pg&e does. we can pass those savings on to the environment, the business, and the community. pg&e really is an expert in saving energy, and that partnership is extremely exciting. together, we're building a better california. welcome back. toot drop here in markets. remember, we had a nine-day run in the dow to all-time highs. came off a little, i think on friday, and further today, the dow is down 110, the s&p is down 10, the nasdaq is also down 10. and deere falling today after a downgrade by piper jaffrey. the firm cutting deere, lowering its price target from 67 to 76. piper saying it expects weak rain prices to continue pressuring farmer's profits and farm machinery demand and stocks in that sector are pretty much down across the board. we have some other movers to tell you about this monday. have you seen shares of sprint today? surging by 27%, thanks to the smaller than expected decline in quarterly revenue that was helped by a better than expected subscriber growth rate. you with me on that? the wireless carrier is attracting new customers, by offering services for half the price of its rivals right now. going after that market share. right now, redbox owner outerwall is higher today by 5% -- no, by 11%, right now. the video rental kiosk company agreeing to be bought by affiliates of private equity firm apollo global management for $52 a share. that deal valued at $1.6 billion. it faces pressure, though, from activist investor, engaged capital. outerwall said it would explore strategic alternatives. >> i thought it said enraged capital there for a second. >> pretty happy about it today, i would imagine. there is drama at the democratic national convention and it's not even formally begun yesterday. john harwood has the latest fallout from a wikileaks e-mail hack. eamon javers is meanwhile, tracking protests outside the convention center, already underway. john, we begin with you. >> kelly, debbie wasserman schultz is now out, not only as democratic national chairwoman, but also as the person who's going to gavel the convention into session this afternoon less than an hour from now. she got booed before her home state florida delegation today. nobody wanted to repeat that, so she stepped aside and baltimore mayor stephanie rawlings blake is going to be at that podium behind me, starting this convention off. now, bernie sanders, just a few minutes ago, had a walk through to check out the podium and the convention stage, where he's going to speak tonight. the question is, can he calm some of that anti-hillary sentiment here, which is considerable. he signaled on "meet the press" yesterday that he's going to try. >> right now, what we have got to focus on as democrats is the feeding of perhaps the worst republican candidate i have seen in my lifetime. donald trump would be a disaster for this country. he must be defeated. we've got to elect secretary clinton. >> bernie sanders is one of three stars who are going to speak for the democrats in the 10:00 hour, along with first lady michelle obama, senator elizabeth warren of massachusetts, and there's increased urgency behind the effort to pull the party together, because if you look at the little bounce that donald trump got out of his cross-examination last week, here in the real clear politics average of all the national polls, donald trump has moved slightly ahead of hillary clinton. she wants to bounce back this week. we'll see if she can. >> i don't know. it just -- it comes down to -- if the bernie -- do you think the bernie supporters can eventually turn to hillary? or where are they going to go? clearly, donald trump has made an effort. he did last week, a couple of times, to try to attract the bernie sanders supporters. but where are they going to go, do you think? >> reporter: a very tiny number will go to donald trump. that's not going to be a significant factor. the question is, are they energized? do they turn out? i think in the end, because bernie sanders will be urging them to do so, and because president obama, who is over 80% popularity with those bernie voters, that between those two forces trying to call them together, along with elizabeth warren, chances are pretty good the democratic unity is going to be solid. but you do have to wonder about the energy, this enthusiasm, the voter turnout. >> you bet. all right, john, thanks very much. now let's go to eamon javers. this is like deja vu from last week in cleveland. eamonn is outside tracking protesters again. eamonn? >> reporter: that's right, we're on broad street heading south in philadelphia. i don't know if you can see this to my left, to your right, this is a 50-foot-long inflatable joint marijuana, it says berned by the dnc. that gives you some sense of how the bernie sanders supporters are feeling out here on broad street. i'll tell you what, it is hot out here. it feels like nearly 100 degrees, nearly 100% humidity. these guys have been going for just about a full hour now on their way down to the wells fargo center, which is where the democratic national convention is actually going to be hosted. the sentiment here, very much anti-hillary clinton. very much pro-bernie sanders. so the challenge for bernie sanders, when he speaks to the democratic national convention, as you've been talking about, is going to be how to convert this group to hillary clinton supporters. right now, you see signs like the ones behind me from coast to coast, you stole our boat. i still can't believe i'm protesting this. we see a bunch of signs saying "never hillary." and we saw one very brave donald trump supporter out here, with a sign saying, "build the wall." so you do get all types. but very much the mood here, anti-hillary. one sign that we saw said "indict the queen." so that gives you a sense, bill, of the challenge that bernie sanders and hillary clinton and the democratic party have this week here in philadelphia. >> eamon, same question to you that we just said to john, if these are bernie sanders supporters, and maybe they aren't maybe they're trying to come off that way, but if they're saying this about hillary, who are they going to vote for in november? >> reporter: that's a really good question. a lot of these people are wearing never-hillary stickers. they're saying they're not with hillary. they've got signs saying, "bern it down." this is a group that is very much anti-establishment. they've got signs saying "tpp" with a slash through it. "i would rather vote for something i want and not get it than vote for something i don't want and get it," is one sign right over here. you can see these guys are saying, they're going to stay home if they have the opportunity to vote for hillary clinton or donald trump. the mood here very much is they're not going to vote for anybody, kelly. >> all right. >> that's an impressive joint you've got behind you, too. the douby brothers would be very impressed with that. >> reporter: it really is. i feel like i'm in a cheech & chong nightmare out here a little bit. >> very good. get back inside and cool off. thanks, eamon. >> that's our eamon javers outside the convention center. now, austan goolsbee is going to weigh in on the escalating drama at the dnc, his two cents on hillary clinton's economic agenda. that is coming up on "closing bel bell". we have 40 minutes left in the trading session. a down day on wall street, dragged by the price of oil which fell below $40 for a time today. the dow down 110 points right now. and a different kind of parade, the earnings parade continues after the bell, led by gilead, las vegas sands, and express scripts, among others. we'll break down their numbers as soon as they hit the tape for you and try to bring you some insight and analysis. up next, though, apple reportedly taps bob mansfield to run its car project. we'll take a closer look at who bob mansfield is and why he is so crucial to the apple car's success, coming up. real is touching a ray. amazing is moving like one. real is making new friends. amazing is getting this close. real is an animal rescue. amazing is over twenty-seven thousand of them. there's only one place where real and amazing live. book a seaworld vacation package and eat free. thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business. . welcome back. watching markets move lower today. also take a look at apple. it is lower on the eve of its earnings report, with bgc downgrading the tech giant to sell from hold. and cutting its price target from $85 to 110. colin gillsy, citing concerns about a further slowdown of the upgrade cycle for the next iphone. he says, consensus estimates for the quarter ending in september and december could be revised lower. apple shares down 1.5%. >> a haiku. we'll have to get you to recite that in a little while. >> meanwhile, apple's secret car project has a new boss. the tech giant has reportedly now chosen bob mansfield to run the electric car initiative. who is bob mansfield, you ask? josh lipton joins us from san francisco with the answer to that. josh? >> that's right, bill. we have the iphone and the ipad, bill, so what about an icar? that could be bob mansfield's new challenge. "the wall street journal" now reporting that apple has chosen mansfield to lead its secret electric car initiative, code named project titan. mansfield joined apple in 1999 and worked as a top exec under ceo steve jobs. during his time at the tech giant, he led the engineering teams that helped to develop a range of products, including the ipad, the imac, and mac book air. he has now been adviser at the company since leaving the executive team three years ago. the journal saying earlier this month employees at apple noticed in the company directory that all the senior managers on that car project were now reporting to mansfield. apple's investor investors, of very focused on any potential growth areas like the car, that as the company's traditional hardware is under pressure. tomorrow, when apple reports q3 results, the street is expecting iphone sales of 40 million units. that would be a drop of 17%. apple, by the way, declining comment for this story. guys, back to you. >> thank you, josh. appreciate it. josh lipton, out west. now, apple's huge wading in the tech sector may be overextending to which all stocks look cheap. >> not only apple's huge waiting in the tech sector, but it's huge share of overall projects in the tech industry. apple's on track in the coming four quarters to produce about $46 billion in net income. that's more than 20% of the entire tech sector's expected profits over that period. apple trades at a very depressed multiple. basically, those earnings are on track to be down. it trades about 11.3 times that forward expectation of earnings. now, the overall tech sector is at about 16.9. a lot of people you hear strategists coming on here, tech looks okay. it looks at a little bit of a discount to the overall market. it's high-quality companies and all the rest. but if you exclude apple, the valuation of the rest of the tech sector is above 21 times earnings. so essentially, apple is such a dominant force, and is such an outlier with its low valuation, people unwilling to pay up for those slightly down profits that it seems like it's skewing -- there are other hot tech stocks. you don't get the growth and the cheapness. you do have to pay up for growth in tech. zblu >> you get the dividend, though. >> cisco in particular is becoming a dividend cash cow. and apple, maybe everyone expects a big dividend hike pretty soon after the earnings. >> it's the dow curse. when they put apple -- >> it's fitting right in with that theme. you're absolutely right. joe kernan said it from the day it happened, actually. it will give him credit on that one. >> and i think they earned the multiple for apple at about 11 times earnings is the lowest, even for a company who's never had a super high one this cycle is at the lowest it's been in years. >> and that's not even excluding its net cash position. so the valuation of the ongoing business is quite low. it's interesting today you get a downgrade and people saying that you can actually get further depressed down to $85. >> in the same we're they're going to sell their billion nt iphone. >> if you look t a other stocks that yields what apple does, they all have higher valuations. so it's actually quite intriguing that apple is the largest stock out there on the market, give or take, depending on the day, is that depressed. >> i was looking it up this morning. do you know that the iphone's ninth anniversary, the day it was introduced, is on friday. the 29th. it's been out nine years now. >> not they project anything like it, but on a day when yahoo! went for sale at such a fraction of its peak value, i think people are getting reminded as to how brutal tech can be. >> and how long did it take mcdonalds to sell a billion hamburgers relative to apple saying a billion iphones, relative to a billion people playing pokemongo. >> but not too many buy two iphones a day. >> back when they were 15 cents a piece. they sold a lot more. thanks, mike. see you next hour. time now for a cnbc news update with sue herrera. >> hi, bill, hi, kelly. here's what's happening at this hour. the treasury department says britain's decision to exit the european union has elevated the risks to u.s. financial stability. although those risks remain moderate. the report comes a day after global finance officials promise to protect the world economy from the shock waves of brexit. at least two children are dead. five others injured in a house fire in pennsylvania. pittsburgh firefighters say the blaze started this morning. aerials of the burning residents show the roof almost charred completely off. sports fans will soon be able to watch more games on twitter. the company says it will live stream some major league baseball and national hockey league games starting in the fall. the broadcasts will be free to watch. a bit earlier, you might recall, twitter announced a deal with the nfl to live stream thursday night football. this is, i think, the story of the day. a small lemonade stand in wisconsin has raised $3,800 for police officers. the children of a local police officer raised the money to support local law enforcement in west alice. needless to say, sales have surpassed even their greatest expectations. >> that's amazing. they sold that much -- were they charging starbucks prices? >> i don't think so, no. i think i saw earlier on the video, it was like 50 cents, $1, something like that. >> wow. >> it's a great story. my favorite story of the day so far. >> good for them. >> they're on their way to a billion. >> in your family homeland there, sue. >> that's right! cheeseheads rule! i'll see you in an hour. >> thanks, sue. going is into the last half hour of trade here, the dow just off the lows of the session, not saying much, though. down 103 points. we have a leading trader who will tell us what he's watching going into the close, coming up. >> and later, the head of the new york stock exchange group, tom farley, will weigh in on wall street. watson, let's review the electronic medical record of the next patient.. no problem. it's a pretty huge file. done. sorry for the wait. that was quick. as part of our research, i also compared lab results with notes about prior treatments, then cross referenced it with thousands of medical journals. and i get the benefit of much more data, and a lot more time to plan the best treatments. i stay focused 24/7 and never sleep. you sound like a lot of medical students i know. announcer: when they test you, stand firm and move only when you hear the seatbelt click that says they're buckled in for the drive. never give up till they buckle up. ♪ for decades, investors have used a 60/40 stock and bond model, with little in alternatives. yet alternatives can tap opportunities that traditional assets can't. and even though they're called alternatives, they're actually designed to help meet very traditional goals. that's why invesco believes people should look past conventional models and make alternatives a core part of their portfolios. translation? goodbye 60/40, hello 50/30/20. welcome back. markets moving lower, maybe not because of nintendo, but that's not helping. those shares tumbled in japan overnight. the pokemongo maker says there will be limited financial benefits from the mobile video game that has taken the world by storm. nintendo says, look, it only owns 32% of the pokemon company, which is just a codeveloper of the game. revenue from the game has already been accounted for in the company's current forecast, although its market cap has surged by something like $17 billion since the game launched, i think, bill. >> yeah, do your homework and find out who actually made the game before you invest, i guess is the lesson there. joining me on the floor of the new york stock exchange, matt chaslak from virtue financial. i'm going to guess you don't play pokemongo? >> my kids played it for about an hour and lost interest, so my neighbor and i were talking about how long that trend could last. >> that's interesting. so how long could this trend last? we've been higher, all-time highs on friday, down today. what do you think? >> this really doesn't break the trend. we had ten days out of eleven. a small pullback today. a lot of economic sensitive news this week, starting with the fmoc tuesday and wednesday. so that's going to carry the weight. you know, we're following oil today for the first time in a long time. that's been the leader. so it's -- i don't think this is anything to worry about. you know, there was an interesting call today about a downgrade in apple, which i thought was before the earnings, you know, that's a bold call. people are negative on apple for so long here, in the short-term, maybe that has a tendency to surpass and take the market higher. >> any levels you're watching here? >> not really here. i think gold will be one i'm looking at. 1313 in gold is an important level. that's had a small pullback over the last two weeks, and that's been a source of a huge bounce. and we've seen a lot of those equities been beneficiary, that bounce. >> this will be an important week. lots of earnings, lots of meetings and things to get to. d.o.j. on friday, as well. >> that will carry a lot of weight. >> thanks, matt. we have a news alert on buffalo wild wings. >> marcato capital have a 5.1% stake in buffalo wild wings. the stock's been up on that news. i talked to one source familiar with this position and got a bit more color on what they're planning to do. i'm told that so far marcato has had a constructive set of discussions with the board and/or management of buffalo wild wings. they see a number of possibilities here. unsurprisingly, for hedge fund, they think the company could be managing its capital a little bit better, could essentially manage the business in a way that would lead to a higher growth and a higher multiple with a ibt little bit less volatility. the key is moving towards a franchising model. right now they're 50/50 in terms of franchising and company-owned restaurants around the country. but the franchising model could allow buffalo wild wings a little bit more reliable, in terms of income stream. they might trade a little bit more like a yum, a restaurant brands, or a domino's. and the idea is to move in that direction among other things, kelly. so some interesting possibilities here. they've been buying a number of shares from late june until very recently, a couple of days ago, according to the filing. unclear if that will continue, but obviously the stock is already seeing a benefit. >> it's up about 5%. kate, thank you! we'll keep an eye on buffalo wild wings, with about 20 minutes or more than that to go into the close. oil the big move lower today. even the dollar is down a little bit. so don't look there. the s&p is down about eight points right now. the nasdaq about the same. despite that drop in oil price, the electric car revolution is moving fast. phil lebeau will look at the challenges of producing lithium ion batteries, as tesla is rushing to complete its gig factory. meantime, let's see, greed, money, sex, silicon valley, and wall street. those are the ingredients of what some are calling the most accurate portrayal of women on wall street, because several top female bankers advised on the film. we'll be joined by one of the advisers and the film's star, the great ana gun will join us, coming up on "closing bell." welcome back. goldman sachs has called lithium the new gas in the electric car revolution, but unlike petrol, this fuel has had its challenges. soon they may be overcome. >> phil lebeau is in clayton valley, nevada, with the latest on -- it's all the rage, suddenly -- lithium, phil. >> reporter: bill, the only reason i would be willing to stand in 125-degree heat in the desert of northwest nevada because of what's under me. down in the water tables here at clayton valley is lithium. and if you look at the spot prices for lithium in the last year, you can see that this has become a hot commodity. in fact, it's up 20% in the last year. now, lithium has been extracted from clayton valley by a number of companies for several years, but the thing to keep in mind is that the process they use, where you pump up the water from the water tables, you put it in these huge extraction ponds and let the water evaporate, that means it takes up to 18 months before you finally get the lithium out of the process. but there are some start-ups. one of them being pure energy minerals, which are looking for a new way to get that lithium out of the ground. do it quicker, do it for less. in fact, they've already struck an agreement with tesla, contingent upon making the economics work welcome where they would provide lithium to tesla for tesla's lithium ion batteries used in their vehicles. >> the technology is getting t lot better. and most importantly, we see the cost per kilowatt hour of batteries going down. forecasts are they can take it even lower. we see wide adoption of the technology and it certainly looks good for the future of lithium batteries. >> whether or not this works out for pure energy remains to be seen, but it's clear that investors, if you look at some of the companies that are in the lithium market, the companies producing lithium right now, there's no doubt that investors are excited about the future for lithium. guys, there is a lot underneath me. in fact, this is the largest lithium deposit in north america. one of the largest in the world, and pure energy is hoping that being just four hours from tesla's gig factory means this is the right location for what they're proposing. >> it's amazing, phil, because i guess it's pretty significant, if we're going to be able to mine and produce the stuff in this country, as opposed to having to depend, like we did with the rare earth metals, for example, on a country like china. >> reporter: right. and most of the lithium right now that is -- kelly, most of it is coming, there is some coming from here that is processed in north carolina or it's processed coming out of south america in china, and then shipped back to be used, whether it's in the panasonic battery packs that are part of what tesla's manufacturing right now, are used in tesla victories. what they're proposing here is, we're here in north america. if we can take the lithium out of the ground, it's a much more economical proposal. not only for tesla, but for other companies as they increase their electric vehicle portfolio. >> by the way, speaking of tesla, there's a report today that it is hurrying to finish up its battery factory, so that it can make it cheaper to produce that cheaper sedan for the company. handicap that for us, how likely are they to get that done in time? >> reporter: well, the factory later this week will be opening for the public. in fact, they've already announced that on friday. there are a select number of tesla investors, tesla owners, who will get a tour of the gig factory. the question of whether or not, bill, they can ramp up production of lithium ion batteries to the level needed for the model three, when they really ramp up production in 2018, it's not only the volume, but also the cost per kilowatt hour. that's the key. they think they're getting close. it's going to be a real move over the last year to see if tesla can meet the projections that they've set out for themselves, in terms of making those batteries, economically enough, in order to be profitable with the model 3. >> and i wonder how the reports, i think it was reuters' reports, saying they're getting closer to completing that deal for solar city plays into all of that, bill. >> right, solar city. they've got a lot of balls in the air right thousand. elon musk, given his role in both companies, i don't think anybody's surprised that eventually they were going to come to an agreement between solar city and tesla. for some time, elon musk has said, look, i'll explain to the investors why this deal makes sense as tesla has become a sustainable energy company. solar city is a key part of that. >> what am i missing here? if he's such a huge stakeholder in both companies, how could this deal not happen? who is he trying to convince? >> reporter: bill, it's a little hard to hear you, but i think you're bringing up the question, i think everybody expected that eventually this would going to happen and, in fact, that these reports make it clear that they have pretty much worked out all the details and i think, eventually, you'll see relatively soon, investors for both companies will be voting on it. >> all right. thanks, phil. the lengths that he goes to, to get a story. >> 120 degrees? >> lover silver peak, nevada. >> and eamon out there in philly. it is a scorcher. a heat dome. >> it's chilly in here, today. turn the air-conditioning down! >> no, they better not. we've got about 14 minutes left to go in the session here. dow has come off the lows a little bit. it's down 86 points. the s&p down 8. the nasdaq is down less than 7. we'll see if it can make a push into positive territory here. up next, the impact of earnings season on the jobs numbers. we have the details on that, when we come back after the break. welcome back. the week begins with more earnings on march. >> can i do the market on close orders first? this is timely information you'll want to know before the close, because this is the first significant number we've had in a while. art cashin was just saying the imbalance is $600 million to buy going into the close here. we'll see if that has an kbarma going on. >> we're heading into the end of the month, we've got the fed meetings coming up. and aerngs. >> two of the more notable companies out are gilead and las vegas sands. meg terrell and jane wells join us with some previews. start us off, meg. >> for gilead, analysts are expecting earnings of $3.02 per share on revenue of about $7.77 billion. both down slightly year over year. that's because of a tapering off in sales of their gigantic hepatitis c drugs. if you look at a graph, you can see sales have been coming down slightly over the previous quarters. analysts are looking for 4d.1 billion in the second quarter. now, whether they meet or beat that or miss that will have a big affect on sentiment across biotech. so important for the next ten minutes, kelly and bill. >> meg, thank you. jane wells, who's still speaking with a scottish accent after her vacation, what are we expecting from las vegas sands? >> las vegas sands is the biggest player in macau. and while expected earnings per share of 56 cents and revenues of $2.75 billion, we'll be down from a year ago, it looks like macau's problems might be starting to turn. however, sands has missed on the top line for several quarters. and it's about to open the parisian on cothai. we'll want to hear how many gaming tables sands is getting and what kind of cannibalization there may be. and sheldon adelson stayed mum last week in cleveland on whether he has or will donate money to donald trump. maybe he'll say something about the election. we'll be listening. back to you. >> the intrigue. meg, jane, thank you. we'll see you both at the top of the hour when those earnings do come out. joining us on the floor of the exchange with the dow down 88 point, anthony chance, the chief economist at chase. you want to look at this correlation. since we're in the midst of earnings right now, on the impact job growth has on earnings or vice versa, huh? >> earnings have very important, because when corporations are making more money, they're obviously in a better mood to hire people. and what i find is right now, what you're seeing is very weak earnings. in fact, right now, with these kind of earnings, we would be averaging about 55,000 nonforeign payrolls per month. the fact that we get 147,000 in the second quarter was impressive. i think quantitative easing is sort of offering more support. so, the good news is that earnings are going to go through an inflection point, and by the end of the year, we'll move back into positive territory, which is great news, because otherwise, at some point, we would see employment taking a hit. >> what about the fed this week and the bank of japan on friday. we come out over the g-20 meeting. there's a lot of central bank chatter. >> we know for the federal reserve, the markets are pricing in less than a 3% chance of any kind of action, raising rates. but for the bank of japan, we're a lot more hopeful. yes, they have said no helicopter money, but the last time he said no negative interest rates, he still gave us negative interest rates. i expect more, but it's not just about monetary policy. we expect a little bit more or an aggressive fiscal policy. that will be a lot better than the united states, where all we have is monetary policy. there you're going to have a combination of both. >> is britain heading for recession? >> i think britain is in trouble. and i think there is a risk of a recession there. but as you know, over the weekend, they were talking about a sort of an exit lite kind of strategy. that might be the saving grace for the uk, but if they don't get something like that, it's going to be awfully close, almost a photo finish whether they have a recession or no growth in the next 12 months. >> do you think they need to move more quickly to give people clarity? is it about the speed of the process or other aspects of it? >> i think we need clarity, period. even if they give you clarity and the process is elongated, it's okay. but if we get the impression this is going to be a hard exit, sort of like the conservatives want, where they want nothing to do with free immigration, but access to the full european union market and of course they may not get that, that would be a lot more difficult. so i'm looking for an opportunity for the uk to still stay in the market, ala switzerland, ala norway or even liechtenstein where they're still part of the european -- >> liechtenstein, the model for the rest of the european union. >> that will be the case. thanks, anthony. always good to see you. heading to the close here with the dow down 89 points, we had the closing countdown in just moments. after the bell, the democratic national convention off to a rocky kind of start in the wake of this e-mail scandal. we'll talk to former chair of the council of economic advisers for president obama, austan goolsbee, for his take. can hillary clinton get the dnc focus back to some of her economic policies? we'll ask. you're watching cnbc, first in business worldwide. you tell your insurance company they made a mistake. the check they sent isn't enough to replace your totaled new car. the guy says they didn't make the mistake. you made the mistake. i beg your pardon? he says, you should have chosen full-car replacement. excuse me? let me be frank, he says. you picked the wrong insurance plan. no, i picked the wrong insurance company. with liberty mutual new car replacement™, we'll replace the full value of your car plus depreciation. call and if you have more than one liberty mutual policy, you qualify for a multi-policy discount, saving you money on your car and home coverage. call liberty mutual for a free quote today at that's liberty stands with you™. liberty mutual insurance. okay, 2 1/2 minutes left here with the dow down 87 points. got bob pisani here with me for the closing countdown. let me do this. i keep wanting to go back to the brexit lull of late june. so we have to go back three weeks now in a chart to be able to put this -- and this is the s&p. to see how we have done since that time. and you know, we're still in cruising mode after the comeback rally. >> for a week and a half now, all of which has given the rise, fairly good news. >> oil has been the drag today. the oil sector and the price of crude oil, and you can see what that has done over the same time frame when we fell below -- we were well below $50, but we fell below $48 and today we fell below $43 for a time. >> oil's been in a trading range between $44 and $50 since may. we broke that today. that is not a good sign. i'm a little concerned about that and the implications for energy profits in the second half of the year. a very, very busy earnings week coming up this week. tonight, these are the companies we will be focusing on. gilead sciences, las vegas sands, we mentioned. and there's express scripts. and apple is tomorrow spop stay tuned nfor that. let me show you microsoft and how it's doing right now. i don't know if you've heard this. moody's is just out. they said they were going to put them on credit watch, microsoft, after they bought linkedin. they are going to maintain the aaa credit rating but put a negative outlook on microsoft. but the stock's in the positive territory. >> that's good news. outlook negative, the market seems to be -- >> a bit of a sigh of a relief, i guess. >> -- concerned about actually cutting to it negative. so keeping the outlook negative is certainly not nearly as bad as possibly could be. i'm worried about oil, because we'll be getting oil commentary in the next few days. chef ron and exxon tomorrow. anadarko will be tomorrow as well, and some of the refineries like valero will be coming. i'll be interested to see what they have to say. a lot of these companies, earnings are predicated on oil being -- >> all right, bob, thank you. always start the week with minus signs off record highs. the ceo raising the bell at the new york stock exchange. and nasdaq celebrates its first anniversary at the nasdaq today. stay tuned for those earnings and a lot more coming up on the second hour of the "closing bell" with kelly evans and company. see you tomorrow, kel. >> thank you, bill. welcome to the "closing bell." i'm kelly evans. stocks declining across the board today. the dow closing lower, 77 points. the biggest decliners in that index, chevron and exxon after oil crashed below $43 a barrel in trading today. now, the s&p broadly closed down about 6.5 points, 2168 is the level there. the nasdaq was just down by 2.5. a live shot of the floor of the democratic national convention in philadelphia. baltimore mayor stephanie rawlings blake will be banging the gavel to officially kick off the convention. this after embattled dnc chair debbie wasserman schultz was forced to step away from her official duties of opening the convention in the wake of the wikileaks dnc e-mail scandal that revealed all those e-mails, wasserman schultz and other officials had been working against senator bernie sanders' bid for the democratic nomination. meanwhile, a busy hour for earnings. meg terrell will bring us results for gilead and express scripts when they cross. jane wells will be looking for las vegas sands and any adelson comments about the election. and seema mody covering texas instruments, those chips that seem to be in everything. thank you, guys. first on today's panel, cnbc's market commentator mike santoli along with stephanie link from tiaa global asset management. and for more on today's markets, "fast money" trader, guy adami. great to have everybody here. mike, a lot of different things for this market to digest. you know, as one of the analysts, i liked this one earlier put it, the runaway bull market trying to reassert itself. >> it has been. over several weeks. this was a pretty logical place for it to kind of stop and wait a little bit. i think a couple of days before you'll get fed statement, no action expected. but i think the markets are starting to get on alert for the idea that maybe the fed is going to say, hey, stock market at record high, global markets are calmed down a little bit, inflation, and economic data looking firm, maybe we're going to put the markets on notice that maybe we can get something done in terms of a rate hike this year. and today, really what you're absorbing is this deeper correction in crude oil. this is something, seasonal demands are going away, people calling for a bigger correction. we've gotten it, but i think the damage was localized. energy sector down 2%. a nonevent for the rest of the market, that's because the high-yield bond market did not panic. it basically softened up a little bit. >> and it's a tug-of-war, because people just talking about, look at how the dollar's gone up. every time oil slides, the conversation is back towards the inflation in the pipeline is receding. i don't know if that's right. >> it's hard for our markets to go up materially when oil is going down. and the xlp is down 11% since june 7th. quantitatively, this has been a sore spot in the market. on the flip side, the discretionary names actually did quite well, for obvious reasons, with oil coming down. some checks suggest that traffic trends are improving. and this sector, particularly the department stores, some of the restaurants have really gotten hit very hard. it was noise to see at least the push/pull between the two sectors today. and that we didn't really completely fall out of bed. >> and, guy, we'll start to get the retail results in a couple of weeks. that's lurking out there. if they're not going to be quite as negative, it could help as we move through a bunch of -- you've got the rnc last week, the dnc this week, the fed meeting, that decision comes wednesday, the bank of japan comes friday. a lot of moving pieces here. >> retail could -- absolutely, retail could help. a lot of these stocks, i'll give you an example. look at the bounce gap has had from that $17 low a couple months ago. that's a pretty hefty bounce for a company that clearly still has issues, although maybe they've taken some steps to fix some of them. but, yeah, i think retailers are clearly interesting. to me the things that stuck out today, other than crude oil, was the fact, you know, there's this resiliency in biotech, if you look real quick. ibb has had this pretty stealth bid to it ever since trading dun to that 240 level and making a bit of a double bottom. now we're approaching levels that it's had trouble with. keep a keen eye on biotech. obviously, we'll get gilead any minute. that will help one way or another. but i think the stealth move higher in biotech is something worth watching. >> i would actually agree to that. to what guy said there. and add to it the semiconductor index. semiconductors have been a much bigger outperformer on an ongoing basis, but they're kind of these risk appetite gauges. and the semiconductor thing is a little bit more than one of these quick bursts and now you have a lot of inventories are building. >> by the way, we had earnings this morning. kimberly clark had a beat on the top and bottom lines. sprint had a revenue beat. we talked about those shares popping. and, you know, jonathan chaplin of news street saying, maybe he has to think twice about his thesis on sprint. it's looking okay in this low-churn moment. and meanwhile, verizon buying yahoo! and, you know, should they be perhaps investing in their poor business instead? >> there's a lot of activity that's going on and i think, actually, this is one of the reasons why within the financial services sector, something like goldman and morgan have actually picked up and held in pretty well in this uncertain rate environment, because activity has picked up. i don't expect that to change. i think earnings are pretty good. not perfect and i know that expectations have come down, way down, revenues and earnings. but they're coming in a little bit better, guidance is pretty good, and it's across the board. it's early yet, but we have to keep our eyes on things. i feel pretty encouraged that eventually more spending will come down the pike. >> if they don't happen, and if they don't, 2007 could remain the high water mark for total mergers and acquisitions, because we've had so many canceled from last year, ones that just didn't come through. do you think those are -- it's a done deal now, that it's still going to be five, not three major players in that space? >> listen, i don't want to play the government or an anti-trust lawyer, but it seems to be a bit of a done deal. yeah, obviously, there were huge deals everyone talked about and now they're seemingly fizzling out, but that's not really my bal bailiwick. >> and on the deal front, there were other things happening today. amc boosted its bid for car mike. and we mentioned tesla perhaps closing on solar city. and salesforce, i would have made more for linkedin. that was a huge deal for microsoft, which just had moody's reaffirm its aaa rating, but i think linkedin had to disclose that hey, we actually did -- they didn't name it, but we know who that party is. >> it is really interesting. except for salesforce, linkedin, those are all low risk, tuck-in, horizontal-type deals. i think that's what you've seen for a while. interesting you mention sprint having a pretty good number, pretty good outlook for it. and also sort of saying, look, firming, pricing, all of that -- we actually had the ceo on this morning. and i said, i guess the government was correct in blocking the potential deal between sprint and t-mobile, there's room enough for hour players here. now, we would love to consolidate, verizon and at&t are still much bigger, but it is very interesting, the companies will want to have these combinations and just build scale, because they don't really have great new ideas for growth. >> and you have soft bake probably breathing a sigh soft relief, the big japanese investor making that big acquisition of arm in britain. speaking of japan, nintendo shares, that was a great one today, plunging because people have figured out what was already apparently the case, which is that they're only going to get about 13% of the share of these pokemon revenues. but more interestingly, the company saying it's already reflected in their guidance, so don't expect some further increase. >> that got so overhyped in every which, way and form. it may be real fun and really cool and get a lot of people that do follow this and sign on, but i think the expectations were way out of hand, in my opinion. not too surprised that the stock retreated. >> you see that, when there's this amazing new phenomenon and people scramble for a way to play it. and there's very limited ways to play augmented reality and the advertising possibilities for it. >> guy, do you think pokemon's already going bust? >> when it's 98 degrees, you don't see a lot of people out there searching for pokemon in times square. i've got to believe weather place a role, as well. but look, i've got kids, and when it first came out, the first time they've been on their bikes for nine years, i'm like, what's going on? then i realized what's going on. but the last couple of years, they haven't been on their bikes. the sense is, the whole thing is going the way of the pet rock. but i'm 52. what do i know? >> you know plenty. >> looks like on the bottom line, you're getting a beat of $3.08 per share for gill yat, versus analyst estimates of $3.02. revenue came in just ahead of estimates at $7.8 billion versus estimates of $7.77 billion. you're seeing the stock fall because hepatitis c drug sales missed analysts' expectations. the total hepatitis number was $3.29 million, missing expectations just under $4.1 billion. you're seeing gilead down 4.3%. call starts at 4:30. we'll bring you anymore headlines. >> we knew the hepatitis c story is moving out. or is it still a matter? >> it's still a big, big issue for the stock. people are very nervous now with pricing and competition. and this miss is disappointing, for sure. and the big question mark for gilead is, yeah, it's cheap. i get it, they've got some good products, but they've got to make an acquisition. and they've been quite a few reluctant to make the big deal. they've been kind of going after small pockets of deals. and i think investors want to see them do something big that could be the needle mover. >> we should show a one-year chart. it's not that hep c isn't important, but it's more that these were already underperforming, precisely because the idea was, what's next after this revenue stream runs out? >> any biotech stock that looks super cheap is a little bit of a flashing yellow light. because, basically, it means they've been overearning for too long. >> don't want to interrupt, but we wanted to show you the gavel-in over at the democratic national convention that's happening. you're seeing mayor stephanie rawlings blake of baltimore making her way on to the stage there. she will be doing the gaveling, because debbie wasserman schultz is not. john harwood, what can you tell us? >> kelly, we've had the rocky pre-convention period. now we'll see whether the actual convention is rocky. stephanie rawlings blake substituting for debbie wasserman schultz, who was shown by those stolingen e-mails thate had been favoring hillary rodham clinton, something she had said she had not done, although it was wildly assumed that she had. we've got a lineup of speakers tonight, including bernie sanders, who's the clean up hitter. he's trying to knit together those dissident supporters of his who are angry with clinton. also hear from elizabeth warren and michelle obama, but earlier today we heard from hillary clinton herself. she was speaking to the veterans of foreign wars and said that of donald trump, who's been live tweeting this convention today, that she simply is not going to play the same game. here's hillary clinton. >> i don't understand people who trash talk about america. who talk about us as being in decline, who act as though we are not yet the greatest country that has ever been created on the face of the earth for all of history. >> donald trump so far, at least, has been enjoying this. he's been tweeting all day long about the problems with debbie wasserman schultz, and also celebrating his poll numbers, which have shown a bump since this convention last week, kelly. >> i thought i saw something about that, like a cnn poll. what are the polls showing after the conclusion of that event last week? >> there's a pretty clear trend that donald trump is rising. and if you look at the averages of the polls, which is the prudent thing to do, because they all have different methodology, donald trump's gone slightly ahead in the real clear politics average, and hillary clinton, therefore, needs a bounce of her own this week to retake that lead. >> do you think that debbie wasserman schultz not gaveling is going to be enough to placate the anger that people were demonstrating? >> you know, we're going to have to way and see when bernie sanders speaks tonight. when he spoke this afternoon and urged his supporters to rally behind hillary clinton and tim kaine, the running mate, they booed him. so, i suspect that there will be a very aggressive effort made on the floor of this convention by the clinton campaign and by sanders, for that matter, to tamp that down, so it's not on display in prime-time. but we don't know until it happens. >> we also have michelle obama on tap for later. any word out there about the rhetoric we might hear from the first lady? >> i will expect that you will hear a very unifying message from hillary clinton. i wouldn't expect her to go after donald trump. i would expect elizabeth warren to do that. she's quite good at it. and has enjoyed doing it over the last several weeks. but the first lady is a unifying figure, both within her party and within the country. her ratings are very high. so i would expect for her to talk about some of the accomplishments of the eight years of the obama administration and also say some nice things about hillary clinton. >> one of the main ways that wall street or investors are kind of looking at either outcome of the election here is one that's going to be increasing fiscal spending, either through tax cuts, maybe through an infrastructure plan, or something like that. i mean, is that too much conventional wisdom, or -- >> no, i think it's the one thing that wall street is comfortable penciling in about the outcome. because almost however it goes, it seems like you're likely to have at least a little bit of release on the fiscal side. i don't think -- you know, maybe it's all priced in on the pure infrastructure-type stocks, those have had a good run. but beyond that, i don't think the market is really trading off of this, necessarily. whether it be the trade proposals or potential, you know, price controls on drugs. >> well, i think health care has actually gotten hit quite hard. it looks like both candidates will do something. we don't know what, but it also depends on what happens with congress. so the anything gets passed, i would agree that on the construction side, infrastructure side, absolutely those stocks are starting to price in or already priced in a big program. those stocks are up double digits, 20, 30% off their lows. >> anything you would add to that, guy? >> i would add, remember, goldman's earnings were a week or so ago. i put up pretty good numbers, but the stock traded up originally and traded off. i think a lot of it had to do with some of the trump rhetoric about potentially bringing back glass/ste-steaga glass-steagall. with that said, politically, it was probably an interesting move for him, trying to get some of the disenfranchised bernie sanders voters over to his camp. i think there's still headline risk out there to stephanie's point, but to mike's point, trying to game the selection in terms of the market is difficult to say the least. >> we'll come back to philadelphia, everybody, in just a moment. let's get more on gilead's earnings. >> gilead did beat on the bottom line in the second quarter, we are seeing its shares falls as it disappointed on its hepatitis "c" numbers. and the company also lowered its full-year guidance for product sales. the new guidance is $25.5 billion to $30 billion in total product sales for this year, that's down from $30 billion to $31 billion. the company also detailed the sales from its newest hepatitis "c" drug, which was just approved a month ago, adding another r5$64 million down in t quarter. still not enough to boost the shares, down about 3.5%. >> they were down at 5% at one point. >> but this stock is trading at seven times earnings. that is a really cheap stock. not sure you want to go there with all of the other biotech companies that do have growth and are growing earnings and the top line importantly. so there's others i would choose if i was going in this space. >> what about if gilead does an acquisition, does that kick off a spate of deal making in the space? >> i think typically you do see that. although, i think everyone's looking. it's not as if the rest of the industry needs gilead to do something before you get this sort of opening of the spigots. right now. and what exactly will be a big enough deal to change the story on gilead? >> and i don't know if we'll hear about hep "c" specifically, but we will get something on drug pricing this week. >> gilead specific, stephanie hit the nail on the head. the hep "c" is still their main franchise, but this is not a one-trick pony. mike made the point, it's cheap for a reason, absolutely. but the stock is getting to levels now where you might start hearing some activist chatter because it's so hapcheap, and t are going to be forced to do something. i think they've smartly waited to see if some of these companies come back down to their price zone. but i wouldn't be surprised to see if gilead make a move. and look for them to make a move potentially in immunetherapy. >> i want to get everyone back to baltimore. mayor stephanie rawlings blake is about to hit the gavel. >> mayor of the great city of baltimore and secretary of the democratic national committee and temporary secretary of the democratic national convention, it is an honor and a pleasure to welcome you, delegates, alternates, standing committee members, and all of our honored democrats and other guests here in philadelphia and all of you who have joined us by television, my radio, and online here in the united states and around the world. i hereby call the 47th quadrennial democratic national convention to order! >> i think i heard mostly cheers there, john harwood. what are you hearing? >> exactly the same. nobody's going to boo stephanie rawlings blake. there's nothing controversial about her. and that's why democrats wanted debbie wasserman schultz off the stage, because some people wouldn't have been able to help it if she was there. >> i think she had to come back and actually hit that gavel on the podium. we see people working through that down here at the stock exchange all the time. it's officially underway, mayor stephanie rawlings blake of baltimore, stepping into that role of debbie wasserman schultz, to open the dnc. john harwood, what happens next? >> well, you have the series of votes over party rules and that sort of thing, party housekeeping business, but the real action is tonight when you've got a series of speakers, the 10:00 hour is when the greatest amount of broadcast news coverage is. that will lead off with michelle obama. she'll speak for ten minutes or so and you've got elizabeth warren, extremely popular with the left of the democratic party. she'll speak for 20 minutes or so. and then bernie sanders. and the clinton campaign is well aware that given bernie sanders' propensity for rhetoric, he may go long and take us past the 11:00 mark, but we'll see if that actually happens. >> john, thank you for now. john harwood in philadelphia more us. and thanks, guy, for joining us and kick things off this hour. there's more coming up with guy adami and the "fast money" crew coming up at 5:00 p.m. next, tom farley is here to talk about the ipo market and how he thinks wall street will be affected by this election. plus, yahoo! ceo marissa mayer says she plans to stay at the company following its nearly $5 billion acquisition by verizon. we'll discuss whether she'll be able to stay at yahoo! or where she might end up. you're watching cnbc, first in business worldwide. mary buys a little lamb. one of millions of orders on this company's servers. accessible by thousands of suppliers and employees globally. but with cyber threats on the rise, mary's data could be under attack. with the help of at&t, and security that senses and mitigates cyber threats, their critical data is safer than ever. giving them the agility to be open & secure. because no one knows & like at&t. welcome back. twillio, line, and u.s. foods some of the biggest ipos so far this year. pricing right here at the new york stock exchange. what's next in the pipeline? joining us, tom farley. welcome to your own post nine, i guess. >> good afternoon. thanks for having me. >> so we've actually finally seen, you know, bob pisani has been reporting at length about the lack of ipos. finally, twillio goes off, goes pretty well. now line. what's next? >> you know, all of the ipos that have gone on recently have been pretty good. they've priced from the mid- to high part of the range, traded up. but there have still been very, very few. it's been an exceptionally slow year. notwithstanding the fact that volatility is so low, you would expect to see a lot more ipos than we have. as i look forward to the second half of the year, i'm optimistic, paubecause all the pieces are in place, high interest rates, low asset rates, low volatility. the looming election has some people scared, but if you look at the data, the elections don't impact the health of the ipo market. it has the possibility of being really a lively second half of the year. >> all the typical factors you tick off there are in place. and the one you kind of can't handicap that well is this general reluctance of companies to go public, to be a public company, and all that it entails. is there any role for the new york stock exchange to try to promote the idea of public ownership, obvious, of a big investor relations function. what do you sit in all of that? >> there's no question about that, the existence of that cynicism. particularly, in technologies. i think back two years ago, i would go to tech conferences or meet with tech ceos, and it was all about the disadvantages of being public. i do feel like the worm has turned a little bit. i was just at the conference out in colorado last week and there were a lot of good tech ceos saying, i actually want a new currency with which to do acquisitions. there's a lot of opportunity now. i want permanent financing. i feel like it's flipped a little bit. >> is it possible that will happen, we're looking at the dnc beginning in philly. is it possible all of this happens right when they're going to come out with the financial transaction tax or something like that that could move the other way against all of this happening? >> i'm not sure the financial transaction tax itself would inspire a great deal of confidence in the public markets or in being a public company. but it has been building. and i don't want to make predictions, but i've been on your show before and i have not been optimistic about the health of the ipo market. just anecdotally, the feeling i'm getting is that it's going to heat up pretty good here. >> from a big picture point of view, where you surprised at the snap back the market saw post brexit? and will that have any implications for the ipo market? >> so i was surprised at the -- first of all, at the volatility around brexit, because i wasn't expecting brexit, although we were preparing for that possible eventuality. i was even more surprised by the way the markets have just gone completely calm. in fact, by some of our metrics, it's the most rapid pullback from volatile to non-volatile in history. the thing we try to do for our customers is give them as many services as possible. we offer a variety of services to our customers that they can choose to purchase that helps them manage a volatile time or a move from volatile to not volatile. for example, they can choose where -- if they want to be located in our data center, they can purchase a colocation service from us, and we will position them in exactly equal distance from every other broker dealer who was chose ton purchase that service. >> this becomes all the more importantly as competition is heating up. we've got to let you go. come back and we'll talk about that. tom farley, president of the new york stock exchange. an e-mail controversy crossing the head of the dnc her job. we'll go back to philadelphia to talk about if that's causing a rift in the democratic national convention. we'll talk to austan goolsbee. also, verizon buying yahoo! for nearly $5 billion. we'll look at whether there could be a culture clash in trying to combine these two quite different companies. you're watching cnbc. your dentures seem to fit fine when you first put them on. but, during the day, they can move! in the morning... noon... evening... enough is enough! it's time to use fixodent plus adhesives. with just one application... ...they give you superior hold, even at the end of the day. so you can keep enjoying your evenings. fixodent. strong more like natural teeth. fixodent and forget it. welcome back. things aren't going quite as planned at the democratic national convention today. debbie wasserman schultz has already resigned. she didn't gavel in the convention this afternoon. is this drama taking away from hillary clinton economic agenda? joining us is austan goolsbee, professor of economics at the university of chicago's booth school of business and former chair of obama's council of economic advisers. austin, thanks for joining us. looks like you're right in the middle of things. do you think the message is getting lost in all the noise here? >> well, you know, we'll have to see. the convention is going to go the whole week. there was obviously a bit of a brouhaha and people are real excited. i think that's totally normal, having been to a lot of democratic conventions. they can be pretty chaotic. so i think we have yet to see if it will drown out the broader message of the convention. i doubt that it will. >> which is what, exactly? i mean, what does lhillary clinton want the broader public -- because we saw 30 million people are going to tune in. what is the broader economic message she wants them to take away? >> i think that the broader economic message will be one of we're stronger together. that's kind of her tag line and where the rubber hits the road, what does that mean for economic policy? i think that's going to be a lot of things that are geared towards how do you get the wages up for working people in the country. how do you rebuild the infrastructure of the country, how do you invest in training and inclusive growth, rather than growth that's concentrated for just a tiny number of people. i would predict that that's what -- i haven't seen her remarks, but i would predict that's going to be the economic message. >> yeah, and austan, just to follow along that a little bit, just exactly how much kind of mission accomplished talk on the economy might you expect? there's been a lot of commentary at the republican side took a very dark tone, a very doomsday take on things broadly. do the democrats come and say, hey, nobody's noticing that the economy looks pretty good? >> reporter: you know, there'll probably be some of that. president obama's going to speak and he will be forgiven for kind of looking at the data and saying, what world are those guys looking at? because i did think that the republican convention was pretty dark. i mean, as you say, it was really amped up to try to find one of the worst things -- one of the worst pieces of data we could find. now, you don't have to be super gung ho rosy scenario, as you know, i'm not. i think we're growing about 2%, which is okay, but not great. you don't have to be rosy scenario to recognize that what the republicans said was really inaccurate. >> austan, thanks for joining us. >> thanks for having me again. >> austan goolsbee in philadelphia. las vegas sands earnings, meantime, are out. jane wells, how'd they do? >> another miss, kelly. the top line coming in at $2.65 billion. the street was expecting $2.75 billion. once again, the company has missed the topline. it's done this for several quarters now. also missing on the adjusted earnings per share, coming in at 52 cents a share. the street was expecting 56. all across macau, their revenues came in lower than expected. venetian macau had 66 million revenue. the street was expecting 700. marena-based sands came in slightly under expectations at 710 million. las vegas itself, also came under expectations with $356 million. basically, what sheldon adelson said is the operating environment in macau remains challenging, but we do see signs of stabilization, particularly in the mass market. thousand, this is important. our mass gaming revenues in the month i don't have june 2016 increased versus the same month in 2015. the first year on year monthly mass growth we have experienced in nearly two years. we hope to hear more on the call from him about the new parisian, one other thing the company is again going to distribute for the quarter, a 72 cent a share dividend. the call was supposed to start, let's see, right about four minutes ago. no. this came out late, so the call's late. back to you. >> what's the hold music, jane? >> well, mozart. >> oh, very nice. classy. jane, thank you. guys, exactly what she just said about the gaming revenue's up first time for the month of june, helped take the sting out of the initial reaction? >> if you want to have exposure to mass play, this is it. and this is one of the reasons the stock is not down more from the miss. this is rearview mirror looking, the quarter. now it's all about mass play. if that number can continue to gain momentum, the stock works higher, especially since it's been such a laggard to win. >> there's texas instruments crossing the wires. let's get the updates in terms of the numbers from seema mody. >> it's an upbeat earnings report from texas instruments. the big semiconductor player, earnings of 76 cents a share, topping estimates of 72 cents. revenue also above expectations, at $3.27 billion. it's important to know that the apple iphone head winds have been a major overhang for a lot of these apple component suppliers, like texas instruments. but this is a company that has been diversifying its everyone base. in fact, in the press release, the company says our site's demand for our products continues to be strong in the automotive market and grew in the industrial and communications equipment market. you can see the stock is up after hours, more than 5.5%. again, texas instruments reporting a 4 cent beat on its bottom line. kelly? >> thank you, seema. so there you go. >> and that's coming off a multi-year high in the stock. this stock is at more than 20% or so year-to-date. that obviously means they delivered and it's fairly impressive for the group. >> particularly since it's trading at a four multiple point premium to the group, right? we'll have to see what the book to bill looks like, but very good diversified streams. >> shares of 6%. marissa mayer may want to stay at yahoo! but is that realistic? we'll discuss her future, whether it will be there or at another tech company when "closing bell" comes right back. this just got interesting. why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your 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deal means for her future. >> i certainly plan to stay. i love yahoo! and i want to see yahoo! into the next chapter. and tim and i are old friends and colleagues and i very much respect him and am laooking forward to working with him again. >> what does this mean meal for the future of marissa mayer? let's bring in erin griffith. >> she says she wants to see it through for the future, that's different than staying at yahoo! for the rest of my career. when aol sold to verizon, it took two months to close the deal. they're saying it could take six to nine months to close to deal. so marissa that has to stay at least for those six to nine months, but after that, i think it's kind of up in the air. i don't necessarily see her joining. >> like andrew ross sorkin was saying, that if she was pushed out, let's say, by tim armstrong, it would be a $57 million golden parachute clause. that's pretty -- >> but would it be pushing her out? i think this is the odd situation, right? it's a public company that's going to continue to exist, of which she is the ceo, which is now just mostly investments. so it's not necessarily the case that she's -- she's just sort of sold a piece of the company, even though it's most of what the company did. >> she doesn't want to be basically an accountant or a cfo lording over these things, because basically they're going to have to pay out the cash over time. she's obviously a product visionary and wants to apply that to something. so i can see her getting a new job. but i think she has to do a little bit of image rehab before she actually moves into a new company. >> do you think that's what her strength is? to be a product visionary? >> that's what her brand was before she joined, and it's crazy, once she got this job, everyone is like, you can't lose. if you save the company, you're a hero, if you fail, nobody could fix it. and it turns out her reputation has been really damaged while she's been there. she's made some bad decisions. there are so many reports of all of the kind of infighting that's happened there. i think she does have to do some rehab. but i think she could kind of -- everybody that leaves google eventually, you know, is able to, i guess, they're able to turn it around and kind of create an image of themselves as being good on product. >> and people think private equity or venture capitalism, something like that. >> that's my theory, because, okay, she's been a public company ceo. she's been attacked. she doesn't want to be in a public company anymore and be in the spotlight. being a venture capital investor, she's technical, she can relate to founders, she won over david carp when she bought tumblr. >> she's bought dozens of companies with yahoo!'s money. >> already had that experience. just wondering what happens to remainco, so, is that also expected to see new leadership come in and kind of handle the yahoo! japan and alibaba assets? >> it's going to be a matter of optimizing the value of that on a tax-adjusted basis. it really is a financial job. it's not really running a business right now. a lot of people think alibaba is a no-brainer, for them to come in and buy the alibaba shares owned by yahoo! or essentially buy the whole thing and do something else with yahoo! japan. it's really hard to figure that out. but there's nothing, i don't think, terribly interesting that's going to go on with that. i think marissa did say, she's not going to use the cash that's left for something else. >> there's not going to be an operating company there, ever. that's kind of the point of this deal. so i don't think it's a great job for her or anyone who kind of has the star power that she does. >> still, erin, thank you for joining us. erin griffith there. well, earnings are coming fast and furious after the bell today. we'll get the latest headlines from las vegas sands. the call began a couple of minutes ago. and preview tomorrow's numbers. that includes apple and twitter, posting their results. first, though, it's the movie being dubbed "the she wolves of wall street." ana gund, star of the new movie "equity," this follows a female investment banker climbing the corporate ladder joins us here at the new york stock exchange, next. you're watching cnbc, first in business worldwide. that's why i have the spark cash card from capital one. with it, i earn unlimited 2% cash back on all of my purchasing. and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... which adds fuel to my bottom line. what's in your wallet? i'm not going to sit here and tell you that i only do what i do to take care of other people, because it is okay to do it for ourselves. for how it makes us feel. secure? yeah. powerful? absolutely. i sam so glad that it's finally acceptable for women to talk about ambition open ly. but don't let money be a dirty word. we can like that, too. >> i got goose bumps. that was from the new film "equity" starring "breaking bad's" ana gund. one of the first movies about women on wall street. ana gund joins me now along with one of the film's investors, barba barbara burn from barclay's. welcome to you both. ana, what is this movie actually about? >> it's about a woman who is a very successful investment banker and she's really risen in the ranks and she's been on a winning streak and when we meet her, she's had her first real major loss so we meet her at a time when she's absorbing that and she's trying to -- she's struggling to really stay in the game and donate rise, but things start to fall apart. >> barbara, what was the genesis of this film? where did it come from? >> i was involved in supporting the woman who actually brought it out, aleasha reiner and sarah ryan thomas. and they brought to me and a group of other women the concept of doing this story. and it's a story that really hasn't been told from a woman's perspective on wall street. and more importantly, women have a very difficult time being backed in the film history. you think it's difficult in wall street, at least you can get hired. the issue is, can you survive, right? it's hard to survive in hollywood if you can't even get in the front door. >> and sthoo the reason this has been so difficult of a subject to actually bring to the public? >> i think it's not as a difficult subject, wall street movies all do well, but it's always been done from the perspective of the male. and the women have always been handmaidens. and various forms. i think in this case, in particular, you're playing the role, anana's playing the role f a very powerful banker, in her early 40s, that you, doing what you do, would know her name. >> there are a couple of women who come to mind who are in dominant roles on wall street before the crisis. and it just seems like that was kind of the high water mark. and we can come back to that in a moment. anna, i'm wondering, how did you get involved in this film and what did you learn or experience in doing it? >> well, i was sent the script and i read it. i was told it was a wonderful script. i read it. and it was brilliant. just brilliantly written. and i thought the character was everything i was looking for, at this particular time. and as barbara said, it was nice to not play a handmaiden or to play a reactor to a man, but really, the one who was driving the story and you get to learn about her experience. what you haven't seen before. so, i really enjoyed that. it was exploring new territory. and i also really was inspired by talking to barbara and many of our other investors and inspirations for these characters. >> mike, you're the guy here, so, defend yourself. >> i was going to ask, the clip we just saw, it struck me as a version of the "greed is good" speech from wall street. self-interest is not bad thing. without spoiling anything, is that kind of the takeaway from the character? >> i wouldn't say that's the takeaway, necessarily. i think she's just being as honest and as forthright and saying, we can claim this as well and we don't have to pretend that it's not okay for women to talk about this. and to be openly ambitious. and to go after things in that way. but the character starts to figure out other things, that she's missed in her life and sacrifices she's had to make and we talked a lot about that as well, when we were initially putting the character talked ab when we were putting the character today. >> what do you hope people walk away thinking? >> the movie's a thriller. o, it's very interesting. great fun. i would caution you on this to think this is not really exactly the way wall street works. someone asked me is this about someone like you. i said, i am a mother of four, my life would have been new jersey transit. nobody would have been too excited by it. but the deal side, the interest side, the intrigue side, it's great fun and you can see how difficult it is for a woman in an industry that is predominantly male. >> thank you for joining us. look forward to see iing the fi. wf we have a news alert as the earnings just roll on. this maybe isn't earnings. news alert on celgene. >> shares are surging after a clinical trial came in with disappointing results. they were testing through new drug, unfortunately, that trial didn't show a benefit in tending overall survival in a study. so they say it does not currently plan to seek aprooul in this indication. down about 2.6%. back to you. >> thanks. so, this comes after gilead just not only missed, but talked about whether those revenues from its product line would be lower, too. >> gilead has two big products. they've got a lot of stuff in the pipeline. you want to hear good news, so this isn't it, but doesn't mean it's over for cellgene. >> shares on their earnings which was amiss. they were up by about .4. earnings calls now is underway. we'll bring you the latest headlines after this. trolling for a gig with braindrone? can't blame you. it's a drone you 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not a shadow a doubt that it will replication the success of the ve neegs. he says it gets 30 million vis tors. >> thank you. those shares are up 1.5%. well, today did kick off a huge week for earnings. tomorrow, we'll get results from apple and twitter. we'll get you set up for those when we come back. 0 n? a bold group of researchers and computer scientists in silicon valley, had a breakthrough they called... the machine. it changed computing forever. and it's been part of every new technology for the last 250 years. everything? everything! this year, hewlett packard enterprise will preview the machine and accelerate the future. see star trek beyond. ♪ guyhey nicole, happening here? this is my new alert system for whenever anything happens in the market. kid's a natural. but thinkorswim already lets you create custom alerts for all the things that are important to you. shhh. alerts on anything at all? not only that, you can act on that opportunity with just one tap right from the 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amazon come thursday and brk iogen and ford. ubs, guys, just to name a few. what are most focused on? >> i think tomorrow is going to be the last chance before we give away to macro to the fed. apple's going to be a big sentiment. even though it's not a bellwether and under armour. >> i want to see what happens to caterpillar. it's up 16% year to date. i was only three buys on the stock. so, if they come in with a crummy number, which i expect they will, maybe they even lower guidance, which they should. just giving the mack e row. i just wopder if that 4% dividend yield gets bought. >> because piper jaffray over the weekend talked about the downturn persisting on those farm supply. >> mining. anything commodity related, but construction has seen a nice lift. particularly nonrez dsidentiano. >> that comes back to the price of oil, too, as the barometer for a lot of these. >> it's all on the calm. these industrial machinery stuff, it's got to be prove in the numbers. dl does it get hammer snd zpl i love it. then on to the biggies after the bell. thank you for joining us. "fast money" begins right now. >> and "fast money" does start now. i am brian sullivan in for melissa. tonight, something curious happening with the oil market and it could have big implications for the cent stock rally. dennis gartman will be here to explain. plus, two big stories on biotech. gilead sink iing after beating estimate, but cutting guidance celgene falling. and later on, donald trump is surging in the polls, but a surprising group is so far not backing him. we have got a cnbc special report on that. but first, we start with the stealth rally in some group,