For the last hour, at least. Tried to work its way back, as we headed towards the close. Didnt quite get there. The nasdaq, the big loser on the back of the disappointing earnings from microsoft, and google. Theres a look at the s p. New high, 1,692, a gain of 3 points. Bob pisanis been watching it all. Bob, you have to say, like allen valdez said, pretty good finish considering microsoft, google, and some others. Yes. What happened, of course, was the industrials balanced out the mess that microsoft made and google made as well, certainly in the tech area. Lets give you a quick overview on the week. The major sectors here. Its a very simple story here. We had financials with great earnings. They were the upside lieder. Industrials had good earnings today. And techs did not. And there you see the whole performance. Techs underperforming the overall and this is for the week, for the major sectors. Its a very simple story so far here. There is some interesting rotation going on, scott. Recently, for example, utilities have been pretty well. But biotech and housing, which were bigmarket leaders in the second quarter, look, theyre actually down this week. Thats very interesting. Ill pay more attention not a big drop, but if that happens more next week, thatll be a major sign of rotation out here. Hows the earnings picture look . Its early. 20 of the market reporting here. So far, 3. 7 gain. Would have been better if it wasnt for microsoft or google, would have been 4 . The revenues still down 1 . Theres the story. Earnings up modestly, revenues flat to down. Where we are right now . My sense is the markets really stretched here. Its hard to argue markets at new highs not having a great earnings season. The fed is not the tailwind it was before. We need better u. S. And Global Economic data to really argue to expand the multiples and to move the market forward. One of the reasons were holding up so well is the companies are promising the second half will be better. We heard that from ge, from dover, from a number of the Big Industrial companies. Heres the major indiess for the week. Notice the dow transports outperforming. They confirmed new historic high this week with the transports and industrials. They love that when that happen, the s p up a fraction. There you see the nasdaq to the downside. No surprise there for microsoft and google. Guys, have a good weekend. You, too. Thank you very much, bob pisani. See you on monday. Okay. Big losses in microsoft today. Big gains, though, for General Electric. Josh lipton, run us through all of the movers for us. Reporter all right, mandy, listen, another week comes to a close. Lets review the notable movers in todays trade. Two tech heavyweights report and disappoint. Google, results missed what the street expected to see, at least six brokerages cut the price targets on google, including bmo, jpmorgan and deutsche bank. Microsoft, Fourth Quarter results disappoint. Also took a 900 million charge related to cutting the price of its surface tablet, down hard on heavy volume today. Another name deep in the red, Intuitive Surgical ticker isrg, our own Herb Greenberg has been around this one, cutting the forecast for sales growth this year, and the stock tanks. Switching gears, names in the green today, chipotle, the bu burrito maker, stock up now 37 this year. The cfo will be on with jim cramer on mad money. And finally, General Electric leading, the earnings best estimates, a record backlog, the ceo calling it a solid quarter for a good year, confident about margin improvement in 2013. Lets break down the market and talk about what next week may bring. Joining us today, stephanie link from the street, kevin karen and ralph from ailterra. Ralph, nice to talk to you. Ill bring you in first. When we spoke last week, maybe midweek, you were about as bullish as anybody ive ever heard. You still . Yes. Absolutely. Not wavering one bit . Not at all. Microsoft dropped a bomb, ralph. So what . Ge broke out. It hasnt been this high since october 2008. Rotation. Its good. Shame on you, scotty. You should always be ladies first here on cnbc. Stephanie link, youre just sitting over there, seem as bit strange to look straight into the camera, what are you watching . Where do we go next week . Its going to be about earnings, because this week, we got 21 of the companies reporting, and, yes, its been okay. I think the absolute positive callout is margins, right . Its not just one sector thats seeing margins. Its across the gamut. Schlumberger, yum, theyre doing an amazing job on the margin line. Thats what the bears were nervous about. They were saying the margin wuss start to collapse. Were not seeing that. I want to see if this continues next week, and guidance no one has dropped a bomb in terms of whats happening globally. The u. S. Is strong. Europe is stabilizing. China is mixed. Maybe on the margin bra glil is a little softer. But these are not surprising at all. But, stephanie, how Many Companies are actually raising their guidance in terms of the year in. I think that people are expecting companies to lower guidance because of the macro, and so, i think that just keeping guidance and being conservative i think is enough, and again, i think the margins story could actually provide upside. And then, if you get the second half of the year recovery, if the economy continues to improve, and thats a big if, but i think it will, then the top line can start to improve. Imagine that. You get margins and revenue at the same time, and you get positive operating leverage. Yeah there you go. Kevin, if you believe that this rally has more room to go, where would you be advising your clients to invest money . What sectors . Is it drugs . Energy . Industrials . The places that are winning on days like today rather than tech . Well, i think you go across the sectors. I do think that eventually the market moves higher. We have a 1,450 price target, were bullish on the u. S. Economy. Were looking around world. We see opportunity here. More so than in other places around the world. We do have declining unemployment. Most of the data is improving, although a little weaker than it was a few months ago. So we would put money to work across all sectors looking for companies that have consistent profitability, very good balance sheets, and really you can find it anywhere. Energy looks cheap on a valuation basis. You look at technology. Youve got lots of opportunities in technology to own good companies, very profitable with good balance sheets. I think consumer the consumer areas another place to look. But ultimately, markets dont go straight up. Even though we have an optimistic target for the s p year out, i wouldnt be surprised to see a little bit of a pullback consolidation here. Because were not everything is perfect. We do still have a lot of challenges, we still have a fed thats looking to move out of the market. We do have very slow growth in the economy. And ultimately, it is about the top line. It cant just be about margins. It is revenue. We do need to see Revenue Growth and see investment spending. Watch those things. Ralph, to his point, he said he prefers to invest in the United States as opposed to elsewhere in the world. And doesnt sort of investing logic tell you to go bottom fishing, to be greedy when others are fearful . There are a lot of other markets out there that had a tough time, underperforming in the United States, were at record high, arent there better valuation opportunities elsewhere . Well, there can be, and theres always theres always going to be opportunities. The dollar, however, is stronger. With the fed looking a little bit less easy than where they were a few weeks ago or a few months ago, i would expect the dollar to strengthen. You want to keep your money here. Theres a lot of Good American companies that provide fantastic longrun opportunities. Europe still has a lot of troubles. Valuation is better. Dividend yield is maybe two times what it is here. But i dont know weve reached a bottom in terms of the economy. Maybe maybe it would be early to go in there full bore, maybe start to look around in europe, maybe add some positions there, but i still think you want to be predominantly here in the United States. Ralph . I totally agree. The emerging markets got crushed in the last few weeks. I think maybe you might nibble around there. But if you want a sustainable longterm move, it looks like the United States and right after that, i would look at germany and france. Of course, japan. I think it would be second. Ill take that. Got it. Ladies and gentlemen, thank you for joining us. Enjoy your weekend. Thank you. Have a great weekend, everybody. Thank you. S. A. C. Steven cohen charged by the s. E. C. , but why on a friday afternoon in the middle of summer, did something bharara say have something to do with it . And detroit is filing for bankruptcy, as you know by now. But should you be on the hook for a bailout . And lets check in on the interns waiting outside in the terrible look what we do to our interns. Waiting for the uber Ice Cream Truck. Guys, hows the temperature out there . Its brutal. Its really hot. I have to take off my tie are they even paying you for this . Can we hear the ice cream music yet in. No, no, were looking for it. We cant see it yet. Oh, so sorry. So sorry. Kind of nice in here. Well be right back. Hang tight, guys. Im a careful investor. When you do what i do, you think about risk. I dont like the ups and downs of the market, but i cant just sit on my cash. I want to be prepared for the long haul. Ishares minimum volatility etfs. Investments designed for a smoother ride. Find out why 9 out of 10 large professional investors choose ishares for their etfs. Ishares by blackrock. Call 1800ishares for a prospectus, which includes investment objectives, risks, charges and expenses. Read and consider it carefully before investing. Risk includes possible loss of principal. More now on todays really big story. The s. E. C. Filing a civil case against steven cohen of s. A. C. Why now . Late on the afternoon of a friday in the middle of the summer is a big question, scotty. It certainly is. Was this foreshadowed by Preet Bharara, u. S. Attorney for the Southern District of new york, on wednesday at our very own cnbcs delivering alpha . Listen to this. We cant really directly talk about s. A. C. Capital, i know, but talk about phone calls. Are the phone calls too late . My understanding from the conventional press is that if youre going to bring some of these cases, the statute of limitations is up. Look, you better do it this afternoon, or its over. Im not going to talk about any particular case, not about the institution you mentioned or any other institution that people are thinking about. What i will say in a general matter, there are a lot of its entertaining there are a lot of armchair lawyers and armchair prosecutors who think they know what the legal theories are we can pursue, and what the statute of limitations are and what the strictures are, and often theyre quite wrong. And joining us is our own kayla. Shes back with us. We also have former federal prosecutor brad bondy, attorney mike lapressty, and a supporter of steve cohen, and still has money invested with s. A. C. , and on the phone, anthony of skybridge capital. Gentlemen, great to have you with us. Brad, i want to go to you first. You jut heard Preet Bharara speak. Talk about the order of this, given the fact that the s. E. C. Has gone first with the civil charges. What does it say, if anything, about the likelihood of criminal charges . I think the fact that the s. E. C. Has gone first indicates that there is a less of a likelihood now that therell be criminal charges against steven cohen. Usually, if there are criminal charges, the prosecution goes first with those charges. So the fact that the s. E. C. s moving now should be a sigh of relief for him. Yet yet if you if you read into what Preet Bharara said, and there are those who heard that interview with jim, read into it that justice moved the goalposts, if you will, on this, as far as the statute of limitations goes and some other things. You agree or disagree with that . I think that might be a bit wishful thinking, quite frankly. Look, the s. E. C. And the department of justice was looking for the equivalent of capital murder charges here, which would have been an Insider Trading charge. Instead, they brought something far less than an Insider Trading charge. They brought failure to supervise charges, the s. E. C. Did. So the fact that were not seeing Insider Trading charges should be indicative of really how weak their case is. I would like to ask you, ed, because in our introduction we mentioned that youre a supporter of steve cohen. You have money invested with s. A. C. Capital. Will you continue to have your money invested there . Does this change anything for you . Yeah, i mean, i think its amazing what the press and what all what everybody has done to stevie cohens reputation. First of all, im not pulling any money out. Im not a huge investor of steven cohens. I dont want anyone to think i am. Just think about this for a moment. Since 19 since the mid1990s, he has returned about 4,000 back to his investors. The trades in question right now, where he failed to supervise, represent 275 million. Now, thats a big number, but put it in the context, its less than. 005 of the gains that he has returned back to investors since the mid1990s. So i have never thought about moving money out. As a matter of fact, ive often thought about how can i get more money back to this wonderful investor. You know, since you mentioned the press, id like to read a statement from dan kramer, who is s. A. C. s attorney, we have attained here, saying the press speculates about a lot of things in this case, but one of the possibilities that the press does not engage in is the possibility that steve cohen did not do anything wrong. We believe the evidence will show he did nothing wrong. Kayla, do you want to weigh in on this . Obviously, as press, and youve been covering this story very closely, im sure you have a view. You know, mandy, it is interesting to get a Statement Like that from the lawyer for s. A. C. But whats more interesting is to look at the actual charges from the s. E. C. And see the exact dialogues that theyre pointing to as indication that steve cohen directly supervised and directly engaged in some of these trades or failed to supervise some of the trades alongside many of these employees. And yet still chose to go with administrative charges and go with charges of failure to supervise, which is very interesting that they chose those lesser charges, even though they had some of the communication instances at their finger tips. You know, there is another situation where Preet Bharara was talking about compliance. If you ask a lot of people on the street, they say, no, if theyre supporters of s. A. C. , they have a very, very extensive compliance department, the thickest in the environment, 38 people, millions of dollars, but bharara said compliance is lip service, sometimes its there on paper only and doesnt get doesnt get put into action. But in this instance, where you see administrative charges, it doesnt really seem like there are those issues. I do have a question, though, for either ed or anthony, which is, one of the things the s. E. C. Is trying to do is trying to say that steve cohen cant oversee any Investor Funds anymore. The big fear from an investor standpoint would be does he have to do a fire sale of did, 1,600 different stocks the company owns at this point. Do you worry that would hurt the returns at this point, do you think the s. E. C. Would succeed with that . Anthony, why dont you answer that . Well, you know, i dont want to overly speculate, because i think its too early in the case, but at the end of the day, hes going to have to make a decision which way to go. Theyre making it harder now to settle. One of the things about settling in the past was you could keep your business open and save all those jobs and save all of the taxpayers. But i think thats an overspeculation state right now, and this case is going to go on for a while, scott. And, scott, can i add in i want to add in, that most of the stocks are very, very liquid. A fire sale in some aliquid portfolios, it might be but these are liquid positions. You know, further more, i dont believe this ban gets barred for failure to supervise. If anything, i think there will be a suspension of some kind. At the same time, its a serious charge. Their jobs are to supervise. And the question really is, was he directly related to the supervision of this, even though hes the big name and everything goes to the top, you got to wonder about that. But you seem to be making the argument and you did from the very top by the way you made it is that, i dont know, money trumps morality. No, thats thats absolutely not true. You dont care if he did anything wrong. His returns have been astronomical over the years. No, those are words that i didnt say, and i i resent that youre putting it that way, because i actually dont say that, and i dont believe that. Im trying to look at the facts as they are without saying that money trumps morality. Anyone who knows me knows thats not true. And im surprised you said that. Mark, i the reason i said it, ed, was because you started making your case by virtue of the fact that hes had whatever thousand percent return 4,000, i think it was, yeah. Thats right. And i think his reputation has been tarnished because many people are saying hes an insider trader and the returns came from being dirty. Thats what you hear on the street. The facts dont support that. Well deal with the facts. Well see how the facts turn out. Mark, how do you think the facts will turn out . Youre an attorney. What is your opinion . I think its important to keep the Legal Standard in mind here. The s. E. C. Does not take these types of actions lightly, and they dont take them without careful consideration. Its also important, i want to make a quick correction, the s. E. C. Has said that a lifetime ban is among the sanctions that they could seek at the conclusion of a successful enforcement proceeding. And i think that a lot of the press, since this story broke a couple of hours ago, has jumped the gun to say that the s. E. C. Is absolutely seeking a lifetime ban. It is something that the s. E. C. Routinely says in these press releases when they bring these enforcement cases, that thats one of the sanctions that they could bring. Its also important to note, as it relates to the question of settlement, that anthony mentioned earlier, s. A. C. And steve cohen received a wells notice on this case in november of 12. And what happens during the time from the filing or the presentation of a wells notice up until the bringing of an enforcement action is discussion, negotiation, and consideration of a possible settlement. The point in time came here when the doj got involved, the subpoenas started to go out, steve cohen began to realize he was a direct target of a criminal investigation, possibly criminal prosecution. We were informed they were no longer going to cooperate with the s. E. C. , as is the thing to do in the scope of a criminal investigation, and the cooperation stopped. But to me, its very telling among the many arrows in the s. E. C. s quiver that they bring a failure to supervise case. They could have brought civil Insider Trading charges against steve cohen and against s. A. C. , and they chose not to. Thats very telling. Anthony let me tell you what else sorry let me bring in anthony, if i could. Because hes been waiting. I mean, it seems, anthony, that maybe the ultimate goal here is to bar steve cohen from the industry. From the business. And that could have a profound impact in the way that you and others, whether they run fund to funds or other investors go forward with steven cohen. Listen, im not i cant speak for the s. A. C. And i cant speak for s. E. C. Heres what i can speak for, is common sense and calm people. If weve on a witchhunt to nail somebody, and then we spend ten years and we back them into a corner of failure to supervise, it doesnt seem like you have a case there, and i respect steve for not settling. And he may end up unintelligible accused by something by the s. E. C. , rather than paying a small fine, he put up millions and millions of dollars of his own money to get himself exonerated. So that may be the case here for s. A. C. And i hope it will be. Let me if i could propose one more question to mark, and our producer max meyers raises what i think is a really interesting point here, is that he wonders whether the s. E. C. Is doing to steven cohen what it did to jon corzine after mf global, just find a way to get him out of the business, because you dont have a criminal case, so do whatever you can by whatever means you can to get the guy out of the business. Well, thats a good point. There is clearly at times regulation through enforcement. Theres no question about that. We see that from the s. E. C. , from the cftc. I wouldnt necessarily compare this case to the corzine and the mf global case. Its really very telling, because you have to remember what the Legal Standard is here. All the s. E. C. Needs to show is that steve cohen knew or should have known or that a reasonable person would have realized that there were red flags of Insider Trading here. Thats enough for them to bring the charges. The civil charges that they brought. But the armchair prosecutors, to quote our Southern District prosecutor the other day, talking with jim cramer, and i dont certainly want to be accused of being an armchair prosecutor, because very telling. Again, the s. E. C. Could have said, no, civil Insider Trading charges. There is information and emails where steve clearly knew that Insider Trading was going on here. Yeah. And didnt stop it. And sanctioned it. Okay. Great debate, everybody. Thank you very much for weighing in. We appreciate it. All right. So, mandy, should washington just bail out detroit . Someone here says, absolutely. Your tax dollars could be involved here, so you do want to stick around for that heated debate next. Okay. Talking of heated, scotty, advisories and warnings are in in effect from iowa to maine. Stay cool everybody. The thermometer hitting almost 100 degrees on wall street. Wait until you hear about a cool app thats providing some tasty relief. You make a great team. 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At issue here are certain interfund transfers, without getting too complicated, that the s. E. C. Alleges were made to improve the appearance of its primary operating fund. The director of the s. E. C. s Miami Regional Office says miami cannot continue to play shell games with its finances, and what stands out here in part, mandy, is that back in 2003, the s. E. C. Issued a cease and desist order against miami for similar misconduct, and the s. E. C. Says that this is the first time in its recollection that a municipality operating under a cease and desist order has, in their words, violated that cease and desist order and continued to do exactly what the s. E. C. Had told them not to do, and they had agreed not to do. So in conclusion, a charge against the city of miami and its former budget director for securities fraud in connection with several Municipal Bonds, and this, of course, of heightened interest, coming as it does one day after the bankruptcy filing out in detroit. Mandy . Okay, tyler mathisen, thank you very much. Over to you, scott. All right, mandy, thank you so much. An interesting segue for sure to the detroit bankruptcy. We did hear from mayor dave bing an hour ago say it was unlikely the president would bail out the city. But detroit attorney believe it is should, and also with us is carol roth who thinks it would be a very bad idea. Charlie, first of all, to you, why does detroit deserve a bailout . Well, first of all, im not saying that detroit needs a bailout. I think detroit is lets go through the bankruptcy process. If were talking bailout in the form of, say, medical, like obamacare, perhaps, i think thats definitely going to happen in the city of detroit. The reason detroit is in this predicament right now, in part in part is because of the huge number of pensions and the guarantee that the city has to make from general funds to pay for pension costs, and its out of control. You cant survive when 40 cents of your dar basically goes to legacy costs. There are other problems, but thats a big one. Well see some washington involvement. It will probably be in the form of medical, Something Like that. How much would that be . What are we talking . What kind of billions of dollars would that be, charlie . Probably a lot of money, but it will be through the obamacare system. Im not saying the president has any desire we have to go through the bankruptcy process. The bond holders, also, are going to battle as to whether theyre secured or unsecured creditors, that will be a serious issue. But washington may take an interest in this, because detroit being the largest city in the country going bankrupt, its going to have an impact on other cities and their borrowing abilities. Our creditors, bond holders, okay, cities, well lend you the money, but well want a lot of security, because thats really again what got detroit into a lot of trouble. Well get some washington involvement. But probably with laws. Carol, you know, we spoke with mayor bing a short time ago. In fact, he probably is literally on the phone right now with washington about this very issue. What should the federal government do, if anything . It seemed to he seemed to suggest, as others have, that most of the issues are selfinflicted. Absolutely. Theres no such thing as a government bailout, and i hate when we use that phrase, because it is a taxpayer bailout. It is our money, the money of the hardworking people, the middle class of this country. And we have to stop robbing peter to pay paul, because if we continue to do that and we dont address the underlying issues, the overspending, the overtaxation issues, the corruption thats in a lot of these cities, the fat cat unions, we dont address the underlying problems and we keep just passing the buck around, eventually the buck has to stop somewhere, and the whole house of cards is going to end up coming down. So right now, even though i feel very, very terrible for the people of detroit, we have you really sound like you do. No, i really do. Its not their fault. Its their politicians fault. We have to remember that we have the power of accountability. We have to make the politicians accountable when they make promises that they cannot keep for the things that they say that theyre going to do and do not do. That is where we have to have that accountability. So bankruptcy is really the only answer here, at this point in time. When, again, 40 cents of the dollar is going to pay legacy costs, where 18 billion in debt the city of detroit taxpayers are taxed the highest in the state, and they get the worst city services. Have you seen detroit lately . Its a it looks like a bomb went off in the city. And we cant have that anymore. Listen, i wish i had the solutions, because id make a lot of money, but we need this bankruptcy, and a lot of people, bond holders and pension people, are probably going to take a big hit. All right. Well leave it there. Charlie, thats it. Thank you very much. Guy, enjoy the weekend. Thank you for being with us. Mandy, a recipe for disaster . Or smart idea . Bipartisan legislation is making its way through capitol hill to give some home buyers bigger mortgages than they maybe should be approved for, just for buying energyefficient homes. Well bring you the details on that next, plus is much for the 125 million listing. The versace mansion on the balmy shores of miami will be auctioned off in bankruptcy court. Wait until you hear how much it could go for. Golden opportunityt and experience the connectivity of the available lexus enform, including the es and rx. This is the pursuit orfection. [ male announcer ] come to the lexus golden opportunity sales event and choose from one of five lexus hybrids thats right for you, including the lexus es and ct hybrids. This is the pursuit of perfection. New Bipartisan Legislation would allow buyers to get bigger mortgages for homes with certain energyefficient components. Our housing reporter diana olick has more on this. Explain all of this to us. Reporter well, mandy, the bill is called the save act, and what it does is it allows you to take Energy Savings from things like the solar panels and take those savings and have the lenders apply that to your mortgage calculation. So you could actually qualify for a larger loan. Its about energy efficiency. Its about savings. Its bin creasing the borrowing power of the borrower. Its a winwin proposition for the industry. Reporter heres how it works. Energy savings are factored into how much a borrower can afford for the monthly mortgage payment. Essentially subtracting the savings in your energy bill from your monthly debt, which lenders factor against your income. It also tells lenders to add the value of the expected Energy Savings to the value of the home appraisal. Since mortgage amounts are based on a percentage of the value of the home, this would allow borrowers to get a bigger loan. Now, it would also help companies that are invested heavily in Green Products like dow, home depot, whirlpool, and insulation manufacturers, not to mention, of course, solar. This would give manufacturers, retailers, builders, and retrofit companies all an opportunity to begin reaching consumers to say if you take advantage, you put these products in, you can have an expanded value for your home. Reporter now, this would only apply to loans that were backed or bought by the federal government. That is fannie, freddie, and fha. But they right now, of course, account for about 90 of the mortgage market. For more details, of course, more online, realtycheck. Cnbc. Com. All right, diana, thank you so much. If some are worried people will be approved for bigger mortgages for simply buying an energyefficient home, this should really raise a red flag. Indeed. As the refinancing boom slows down, as Mortgage Rates seem to be rising, one regular cnbc housing expert says governmentbacked loans are being approved again to home buyers with very poor Credit Scores. To compensate for the refi slowdown. Fred glick is joining us now, president of u. S. Loans mortgage, add also Mortgage Broker and real estate agent. He does everything. Fred, why do you think lower Credit Scores are being accepted for fhabacked loans . Well, first of all, mandy, there is no minimum credit score on fha. Theres nothing in the rules that says it. So its a matter of the appetite for the mortgagebacked security buyers to say, okay, well take a little more risk, and you can now underwrite them carefully, but well go down to 560. And the 560, youre going to have to have some extenuating circumstances. Its not like you can be currently missing, you know, five payments on your car loan and get a mortgage. But two years ago, you had unfortunately something that happened where your Insurance Company didnt pay a medical bill, and so its been hurting your credit score. They have to look at that, they have to look at the ratios of debt to income, and as long as theres an appetite for it, theyll be able to sell mortgagebacked securities. So were going to be, here we go again. Yeah. Yeah. Well be packed deja vu. Packaging up riskier mortgages, pushing them on investors, saying theyre great, when the Housing Market is just trying to get back on its feet . You said it, scott. Deja vu all over again, thank you yoga berra. Thats going to happen. Because somebodys willing to buy. Thats really all this amounts to. But the funny thing is on april fools day next year, the qm goes into effect that limits to a 43 backend ratio and 640 credit score on automated underwriting. That means i take your nfth and throw it into the fannie, freddie computers and if you dont have the 640, it gets rejected by the computer. But someone can actually manually underwrite it, like oldfashioned days. But theyre going to be on the hook for that loan. So i dont know if this is going to continue past next april 1st. But right now, i think its a compensation for the fact that some of the refis are dead and theres a lot of Big Companies out there making loans, and most of them are Public Companies and they need to make money. This is one way of doing it and trying to help people. Forgive me real quick, i know we have to run, you said the qm kicks in. Right. Qualified mortgages. Its the cfpb, the fed, they put together this im sure your viewers know most of this. But, yeah, theres going to be a lot of rules soon. I dont think they walk around wondering what theyll do this weekend for qm. Talking about qe, but not necessarily about qm. Thanks a lot. Im going to the beach. Good for you. Bye. All right, guys, now to the very high end of the Housing Market, the versace mansion in south beach miami used to count itself among the most expensive homes in the United States with a list price of 125 million. But now its on the auction block. Robert . Reporter thank you, scott. The bankruptcy Supreme Court has approved the auction of the versace mansion, starting bids are only 25 million. Its a far cry from the 125 million former listing price. This has been a troubled property ever since the designer was murdered on the front steps in 1997. In 2000, it was sold to peter lofton, and he later ran it as a hotel and restaurant. It went on the market last year for 125 million but the price was recently dropped to 75 million. A lender with a 25 million mortgage on the property, however, started foreclosure proceedings and lost loftin was forced to put it into bankruptcy. The 23,000squarefoot mansion was purchased by versace and he put 33 million into the house, and his murals, the furniture, the famous pool, the 24karat gold tiles, it will all be included in the sale. The auctioneer tells me hes already getting calls from wealthy individuals around the world and hotel companies. The sale is september 17th if you want to bid, you have to prove you have at least 40 million to spend. Back to you, mandy. Okay, thank you so much, robert. We always love the stories you bring us. Okay. Earnings season is shifting into warped speed next. You have mcdonalds, netflix, dupont, apple, caterpillar, amazon, i can bring you lots and lots of names. Well run through the highlights next. And then, later on ice cream ice cream the ice cream man is coming perhaps eddie murphy captured it best. What kid doesnt get excited about the sound of an Ice Cream Truck rolling down the block in the middle of the summer . Well talk to the ceo of a company whos app brings the Ice Cream Truck right to your doorstep. At a dry cleaner, we replaced people with a machine. What . Customers didnt like it. So why do banks do it . Hello . Hello . if your bank doesnt let you talk to a real person 24 7, you need an ally. Hello . Ally bank. Your money needs an ally. Always go the extra mile. To treat my low testosterone, i did my research. My doctor and i went with axiron, the only underarm low t treatment. Axiron can restore t levels to normal in about 2 weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. Women, especially those who are or who may become pregnant and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. Serious side effects could include increased risk of prostate cancer; worsening prostate symptoms; decreased sperm count; ankle, feet or body swelling; enlarged or painful breasts; problems breathing while sleeping; and blood clots in the legs. Common side effects include skin redness or irritation where applied, increased red blood cell count, headache, diarrhea, vomiting, and increase in psa. Ask your doctor about the only underarm low t treatment, axiron. A flood of huge earnings reports hit wall street next week. Josh lipton has been sifting through them, and theres a lot. Which ones are the most important . Reporter absolutely. Looking ahead to next week, a huge week of earnings. Lets quickly recap whats ahead. On monday, before the bell, well hear from mcdonalds and halliburton. After the bell, two big ones netflix, now up some 185 this year, and texas instruments. After the bell on tuesday, apple where the street will be looking for eps of 731 on revenue of 85 billion as well as at t. On wednesday, a big day, boeing, caterpillar, ford, pepsi, with facebook, qualcomm and visa after the bell. And thursday, get ready to hear from 3m gm, amazon, and starbucks. Mandy, back to you. All right. Thank you so much for that. And, also, makeorbreak time for netflix. Slow down for a second are you kidding . Im never going slow again Dreamworks Animation made a movie on turbo may turn out to be a dud. Plus, has the netflix trade ahead of the earnings monday, whats going on there . Well find out. Later on, well send excuse me a message out to the interns. Look at them. There they are. Theyre in a difficult assignment, on the side of the road, and theres an actual app to get the Ice Cream Truck to your doorstep. They are waiting right now outside the nyse for a cold scoop of ice cream, poor things. Theyre looking everywhere. Where is the truck . Well talk to the ceo behind the app after this. In todays markets, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Now get 200 free trades when you open an account. We used to live with a bear. [growl] wed always have to go everywhere with it. Get in the front. We drive. It was so embarrasing that we just wanted to say, well, go away. Shoo bear. But we cant really tell bears what to do. Moooooommmmmm then one day, it was just gone. Mom [announcer] you are how you sleep. Tempurpedic. Weve taken it outside here to broad street as were still waiting op this Ice Cream Truck, but in the meantime, fox, dream works and netflix have a lot riding on the movie, turbo. The film about racing snails isnt off to such a fast start. Grossed 5. 5 million on wednesday when it opened, putting it on track for less than 40 million over the first five days. It gets great grades, but faces tough competition from despicable me 2 and then the smurfs 2, which opens a few weeks from now. The pressure is on for dreamworks to justify the films budget and perhaps more importantly, to build a brand to sustain a tv show, video game and merchandise. The films performance also puts 21th century fox in the spotlight. Its the first since the split from news corp. Turbo was also important for netflix, which signed a deal with dreamworks for an exclusive series based on the film. The better the film performs, the more valuable original kids programming. Now, all eyes are on an investment of the company. It reports earnings after the bell on monday. Thank you very much. So, should investors stream into netflix ahead of mondays earnings . Brian, simple question. Would you buy netflix ahead of its earnings . Well, mandy, no. You look at the stock and forget about the name netflix. If i told you a stock is trade i ing, id probably stay away from it. I would open this stock on a pullback. Maybe not before earnings. Hopefully, they sell the news and have been just buying the rumor ahead of time, but this company is going through a 90s like transformation offering original content. The answer is no. Thank you so much. And for more options action, including the best way to trade netflix, tune in after fast money. Are you feeling hot . A scoop of ice cream could be just a few taps away on your smart phone. Our interns are still out there. Its boiling hot out there and theyre waiting for the ice cream man to deliver the goods. Were going to be talking to the ceo. Next. [ cows moo ] [ sizzling ] more rain. [ thunder rumbles ] [ male announcer ] when the world moves. Futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim. From td ameritrade. The world is changing faster than ever, creating new opportunities for those who stand ready to seize them. In a time when the biggest risk is playing it safe, we believe outshining the competition tomorrow requires challenging your Business Inside and out today. At cognizant, our flexible, collaborative approach helps forwardlooking companies not only run better, but run different. To give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because now more than ever, the future belongs to those who challenge the present. Weve been waiting all day for this. Uber ice cream. The ceo is with us for the inside scoop on the Ice Cream Truck. Great to have you with us today, sir. Lets talk about uber ice cream. Is this just for today . Yeah, just for today. Its a oneday event and were delivering a ton of ice cream in 33 cities around the world. If it is really popular and goes really well, would you consider doing it more times in the year . You know, look. This is a big day for us. We did it for the first time last year. I think next year, we might get, there will be ice cream week. That would be good, especially with the kind of weather were having in new york city. Its down right sweltering, so thank goodness that the truck actually showed up. Hows it work . Whats the cost . Do you pay for the truck to come, plus the ice cream . Basically, we partner with the Ice Cream Trucks in every city. Right . And we then partner with the ice cream providers, too. We try to find the highest end, most local ice cream providers. Put the two together, then find the right price point. Well make sure that the costs get paid, but not too high that it prices out the customers. Im speaking, sorry, mandy. Directly about the customers. Does the customer pay a surcharge for the truck to come, then obviously they pay for their ice cream . No, its just the ice cream, so they get depending on the city,s its going to be like five pieces of ice cream for 25, 30 bucks. Tell me about uber. Ive got a few friends using your app. Where do you go from here . Our motto says it all. Were everyones private driver. Weve rolled out in 20 cities in the u. S. 35 cities worldwide. A smart phone app. You push a button, car rolls up, takes you where you want to go. I dont know how many thousands of town cars on the streets in this busy city like new york in the summer. How long is it going to take for a truck to get to me if i need one . I mean, look, these trucks are in high demand. Weve pulled all the trucks that exist in new york and put them on our system. Theyre more popular than the black cars today. People are going back to childhood memories and they want their Ice Cream Truck and they want it now. Thanks so much. Thank you. Im getting some ice cream. You deserve it. The interns as well. Thanks to them. Fast money starts right now. Have a safe weekend, everybody, and stay cool. I will right now, stay cool. Definitely. Markets in new york citys times square, im melissa lee. Traders are straight to the big story. Fast is following tonight. Steve cohen under fire. The sec announcing it has charged cohen for failing to supervise two senior employees and prevent Insider Trading. Theyre seeking to bar cohen from overseeing Investor Funds. Lets bring in michael
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