alix: u.s. stocks closing down with the s&p 500s slipping below its average price for the last 50 days. joe: question is, what you miss? puerto rico $72 billion conundrum. the territory groans under enormous and misses a key payment. what is ahead? alix: real estate interest rates set to rise. in the housing market ready? joe: disney is about to open up in show its earnings for star wars. you were looking at the s&p relatively flat on the day. but it is closing below its 50 and 100 day moving average. eight of the 10 sectors all below average. but materials was the best

performer. joe: a really important headlines afternoon, indicating convened before september when we saw that first rate hike. everyone is paying attention to that. alix: it is moving in the two-year as the dollar because of that. to point out one stock that was definitely moving the markets. that is ample. you can see around here, the 200 day moving average, apple was s flirting both it all day, and it closed below that level. it is astounding to me the volume we stop. -- saw. we talking more than double the volume. joe: i compared the 200 day moving average to the donald market. the economic if we do not talk about it no

one would care, but because the government so much hype, it created the second wave of everyone trading. alix: i want to take another deep dive into my bloomberg terminal. take a look at back to the future for oil. wtiare looking at the 2014 oil price. from where we were today last year, it is about a 50% slide. what is happening now in oil? it is the same kind of price we saw in 2014, and you are seeing a lower price, just we saw last your, heading into the season only were we have refinery maintenance before the fall. the question is, will we see this slide? joe: because he and further gloss. more pain ahead. alix: if it mirrors the charts, that is a concern. joe: i want to take a deep dive into my terminal and look at 15 of year yield. we often talk about the 10 year,

the treasury, but a short-term yields are very sensitive to the policy rates. when we got that, can you spot the moment on the charge where he suggested it might be september? a very fast spike. people took that headline from an seriously. he is seen as an ally of yellen. there is a job in short-term interest rates. alix: julie hyman is that the breaking news desk with all of the numbers. company says its revenue in the second quarter point $44% to 61 million to do that is a bigger increase than estimated. but at first blush, it is the earnings loss as wider. it might not compare, night not be a like for like comparison with the estimated loss of five cents from analyst we will keep looking at that. -- localwer fluency

currencies continue to weaken demand. the statement, the ceo talking the number of active sellers, 1.5 million at the end of the second quarter 21.7 million active wires. the company is having about $1 billion in gross merchandise sales during the first half of the year. .hose numbers we have i will keep looking through the statement and see what else we can get you from it. looks like the shares are falling on that wider loss than estimated. we will try to get you some body movement and an update. joe: thank you. alix: we want to bring in our guest, the chairman of cumberland advisors. one of the agencies defaulting on a bond payment for the first time. with 72t struggling

billion dollars worth of debt. it is always a pleasure to have you here. david: it is a pleasure to celebrate a new book on the municipal bond market. this is a shameless plug. the book was launched on july 31 andt the financial crisis puerto rico. never dreaming that the next day puerto rico would would default. joe: we are talking about the bond payments, etc.. but what about the weird real o rican economy? is learning that can be done to turn it around? david yes. repeal the jones act. the jones act is a shipping protection, union led peace from the united states. it cost a lot of hurt puerto rico. joe: can you explain specifically?

david: carriage in the united states has to be an american-made ship. ip. the rest of the world can do it in a much lower price. puerto rico, as an american territory has to abide by american law. just to quantify, if you're looking it important to puerto rico in lasted about $20 billion at how much cheaper could that be if they did not have this shipping tax? david: millions, not millions, and enough to make a difference . when you look at the structure of puerto rico come you say their internal governance is really missing the reforms. the legislature will not make them. the economists a year ago for this front cover that said the grease of the caribbean on the front of the magazine for good

reason. you do not have governance committee do not have political will. you have an economic construction which does not work. you have the island running out of money. for the island, things have to change. that is tough. for the rest of the municipal bond market, we know how to default. when is the last time an american territory, virgin islands, american samoa, long, puerto rico, when is less time you can remember a default? joe: you can't. they did not pass the appropriation, they could not, they do not have the money. and now you are going to trigger a lot of questions. there's a question about a letter of credit from the government development bank. there's a letter from credit about an agency that manages the finance of puerto rico that says -- does that have

presidents over a legislature that will not fund. who is liable? there is question is about the language of the act is that issue the bonds. is it different language than the language in the bond. it is a left technical jabber, but we will now have litigation, discovery, investigation, documents. i think there is ugliness coming. joe: so when you look at the world, what keeps you up at night? things, theg other low negative interest rates in global because the distortion of finance is taking place from negative interest rates by the european central bank and in response from denmark and from sweden and from switzerland. that is a huge mass of the world financial system. they are operating on a new version of policy, which is a negative interest rate. you put money in my bank and i

charge you to run a warehouse for you. we are not used to that. david, from cumberland advisors 21 for joining us. up, the annual gdp in a year. the chart after the break. ♪

alix: i'm alix steel. -- i aman wiesenthal joe weisenthal. what you miss? this chart that shows you how in a little over a year energy companies have raised one $3 trillion.

alix: unbelievable. time is a loan return coming up, which makes they are going to have to come to the bank and see if there were less than they were a year ago. u.s. housing recovery is in full swing, with sales at eight here highs. but the impending interest rate hike by the federal reserve is asking, is the housing market repaired? joe: we bring in our expert . >> let's get started. alix: what does the wind of telling you, and -- >> when there are no homes to buy, people cannot buy them. it really drives up prices paid that is why we have seen a price exhilaration in the first half

of the year. people not able to sell a place and it becomes self-perpetuating. it cannot tell a place, you worry about trying to buy a new place. he will not be able to get it. move,eople say i cannot if he freezes the whole market. joe: why can't people sell? but theyan sell it, cannot find the next one. alix: it is a credit market issue at the end of the day. >> we have three or four people working with us in seattle, who are selling a place and then they're going to rent their next place because they do not know how to find the next place. joe: let's talk about the median sales price of the home. what does this chart tell you? >> it tells us that the market is nearing peak. we have really been seeing an increase in sales price, and is probably not sustainable. i would expect the market to soften. you're looking at people who are touring homes not writing offers. they are worried about where the prices have gone.

my expectation is that we're going to see the prices soften through the rest of the year. i think we have seen most of that in the middle of the summer, and now it is starting to ease. when we're talking with customers at the beginning of the year through the early summer, if a house was not perfect, they would still buy it because money was going to get more expensive but now people are really feeling like time is on their side. if they do not like this when they will wait for the next one. we see a lot of people walking through homes and not as many writing offers. it will become softer ahead. alix: this chart looks at how many homes were sold above the asking price. it was 23%, up two percentage points year-over-year. where is the danger zone here as we see the housing market heat up? ahead ofs might get themselves and start trying to price in the next month of gains in the next two months of gains.

we have seen bidding rs on properties for the past three or four months. it has reached a peak. we're not going to see that over the next three months. you're going to see more buyers say i'm going to be disciplined about this. i'm not going to chase that point. bidding wars have led to frustration among consumers trying to get into a place. alix: what happens when first told buyers cannot compete with the huge surge in price? thought.o that disney earnings are actually out. we want to get to those numbers before you answer that question. julie hyman has the details. julie: it looks like earnings-per-share of 13% over here to $1.35, better than analysts anticipating. i'm getting a breakdown of the various units of the business. media networks revenue of 5% to $5.8 billion. that is roughly line to a little better than estimated.

studio entertainment revenue at $2 billion. that is roughly in line with what was estimated. interactive revenue, 208 nine dollars, that is worse than estimated. average analyst estimate, with nearly $260 million trade i'm seeing the consumer products million as under $54 well. unit by unit, we are seeing some mixed results here. that is something we should note, even though overall with the company's earnings-per-share of what analysts had been anticipating. i'm also looking at the open already numbers and -- the overall revenue numbers. that is a little bit light on estimate. earnings beating revenue missing. we will see if we can get any commentary. everyone is waiting to hear what they have to say about espn and evidential over-the-top offering you spin not connected to your cable service.

the company is saying in the statement that the operating growth"were driven by billion revenue, partially offset by lower avenue prizing revenue. unlikely that they would talk about this over the top offering in the statement. we also looking on the call of anything on terms of outlook in thenext installation of star wars franchise, coming out in december. we want to have a quick mention of sc. they continue their march lower, down by 11%. they're getting very close to that ipo price of $16 a share after reporting a wider loss than anticipated. joe: julie hyman with exciting after-hours action. a ceo of friends in. we have an interesting index. what is it? >> every friday we get together and look at how people are touring properties and writing

offers with our agents. if you can see what i would see, you would be worried about the real estate market. it has been a very strong bull market for the first six months. it has really started to soften over the past four weeks. the numbers,f about how many people are on our site, walking through houses, how many people are writing offers can we combine that into an index it forecast what you're going to see in sales and rises over the next two months. it is not that the bottom is going to fallout, it is not a highly leveraged market the way was six years ago, but it is indicated that consumers have had enough. they are not willing to chase prices quite as high as they have been over the past year. alix: it is interesting to hear a more conservative view of the housing market. most people are bullish. we like to find out what keeps people up at night. what prevents you from sleeping? >> i worry all the time that we are going to screw a customer's offer. that a customer will call me and say why did i not win?

when you celebrate these bidding wars, and causes us to lose our hair. alix: thank you. a pleasure to have you and your perspective. joe: here is a number you probably have not considered recently. whole milk powder prices plunged today to the lowest prices in seven years. ♪

alix: before the break we asked who is getting slammed and why by the collapse and whole milk powder prices which have reached

record lows? joe: new zealand. the largest exporter of powdered milk. the price drop is due to china, and supply. the new zealand dollar, brutal. alix: you are so excited about it. why is it so important? think it ist even important, i think is just found that there is this currency that is so connected to milk. disney earnings just crossing a few moments ago. the company beating estimates thanks to a strong results --the parts box office and theme park results. a little bits light, so stocks trading just a little bit in a after-hours. a little bit of an bag, but i

think that the key issue for the call here is to really call at some of the big cash flow property's and businesses for disney, most notably the cable networks. how is he has been doing, advertising network? the outlook for ad spending across all of the cable networks, that is the primary driver of cash flow for the company. alix: if round of beating estimates. without not imply that ad revenue was better than before? >> when you look across the media companies that have reported so far this quarter, we have seen a mixed bag in terms of advertising. advertising across the space has been weak over the last four or five quarters. disney has espn, so while they are exposed advertising, they are really benefiting from growth. they are by far the most valuable cable network out there. they are consistently raising license for espn rate --

year-over-year. that is what drives the cash flow for espn and the cable networks. they are very exposed to the growing part of the business. joe: what about the box office? they have been shooting the lights out in their receipts. how is that story looking? joe: the revenue came in a little bit more than expecting. they are 1.3 billion at the box office this year. that was the number two between the floor and universal. there is a lot to look forward to for disney on their studio business. they have a new pixar film, all the marvel franchises. starting in the fourth quarter, star wars, the beginning of something really big for the studios. that is what disney is calling for. alix: you have not seen star wars in the last 10 years? joe: i saw one a long time ago. >> they will suck you back in.

there will be merchandise, theme parks. is the main point? it is down a little bit off the numbers? >> the request and investors, these media companies, customers are cutting the cord. we know that. on the margin, pay-tv bundle is really fraying. all the cable networks out there, all the broadcast networks, and the cable bundle is fraying. consumers, particularly manila kneels, getting the content over -- millenial's are getting content over the internet. they are leaving the page tv bundle. lip side, they are less exposed because they of the theme park and the studio businesses. alix: thank you. joe: we will be right back. ♪

alix: do not miss this. kessler earnings are out after the closing bell tomorrow. i will find out the only number you do need to pay attention to -- that is sales. tesla has said they have sold 22,000 cars. they have a goal of selling 55,000 this year. how will they be guiding the? when will they be actually delivered? like iphoneles is and apple. it is all about the volume. that is it for what you miss. come back tomorrow and we will have more.

alix: have a good night. ♪

emily: disney shares lower an extended training despite great box office results. what investors want to see from mckee. ickey. blizzard reports a strong demand for games like call of duty. we look at the optimistic outlook for the rest of the year. plus alibaba names a former goldman sachs partner as president. we look at goldman alumni in