all right. welcome, everybody. three big stories. the senate foreign relations committee set to vote on potential authorization for military strike in syria passed. a full senate vote next week. breaking news right now from the federal reserve. steve liesman is here. what is it, steve? >> reporter: the federal reserve saying in the beige book that the economy expanded at a modest mod latt pace, pretty much what they said in the prior month but the underlying commentary is better. consumer spending was strong for automobiles and home goods. manufacturing expanded modestly. real estate increasing and also what we're hearing is limited inventories pushing up prices. interested to hear tntary. here's the focus like every month, focusing on real estate.

richmond in boston saying homes were spending less time on the new york and new york saiding bidding wars common in buffalo and minnesota and dallas and chicago strong home construction and in san francisco you can't find construction workers. what about lending standards that folks focus on, this is very unchanged though lending activity improved. strong competition though for quality borrowers was hurting some banks that were following the rules but outside they were able to go outside the banking system and get financing, something that's an issue and new york was reporting widespread declines in consumer and business loans and hiring holding seddy and there was upward pressure for skilled workers and no inflation to be seen in prices overall, according to the fed, and then there was mixed commentary on the effects of the sequester on defense manufacturers. some said they were feeling it. lower orders and others said they didn't feel it now and others saying it's just a matter of uncertainty.

we don't know. >> one sentence bottom line. >> it's an economy that's moving at 2% but maybe some of the underlying details are just a touch stronger. >> okay. >> i was going to say no, it sounds very positive. >> it does. >> the real estate side especially. >> but i think the magnitude, real estate is surprising, brian, because i thought that given the hike in interest rates and some of the data that we've seen there could be a chance of weaker real estate numbers, and weaker real estate commentary but just remember everything is going okay but nothing is huge in magnitude in terms of increases that we're seeing here. >> bottom line from these guys as well, mike lutz and dan greenhouse. dave, what's the bottom line from the beige book for you in terms of what it means for fomc policy? >> you know what, mandy, important to see that our economy is expanding and steve hit it right on the head that it feels like we're moving along at a 2% pace. the one big takeaway a non-event. syria is dominating the

headlines right now with the senate foreign relations committee gearing up for a vote ahead of a full vote next week and more important lit street looking forward to that non-farm pay rolls number on friday and the fascinating thing is we have rash hashana starting at sundown tonight so volumes are starting to deteriorate pretty rapidly and three central banks on to. going to be pretty quiet going into friday from a trading perspective with a lot of possible volatility out there. >> dan, it seems to me with everything that steve gave us with the headlines it's a very optimistic beige book, optimistic perhaps but all but guarantee and move our taperometer to eight. what say you? >> i'd be hesitate to say optimistic about the report. i'm sitting here in studio so obviously i've only seen the headlines though i'm shock that had anything is going quite well in buffalo as steve and i will talk to you for hours about, but, yes, i'm hesitant to use the word optimistic. i think the larger story, at steve insinuated this, remains about a 2% economy and nothing

on the horizon suggests that that's about to change. >> do you think that syria changes the equation at all, dave in, terms of what the fed is going to do this month or otherwise? >> you know, i think it would be more of a factor if we started seeing a large equity selloff and a lot of angst in investors going into the fomc later this month, mandy. >> certainly seems like. >> what's interesting, mandy. >> right now it feels like there's certainly not pricing in anything but a very limited and tailored approach. of course, we don't know what's happening. >> what's interesting about this beige book and what's trog me about the auto numbers is what's going on in retail sales, the huge part of the bear case tore stocks and the economy. >> right. >> if there's some sense, and the home stuff is also significant. >> i disagree completely. >> if there's some sense that the consumer is doing okay out there, that they can do 2% in the third quarter, then i think the bullish case is back on track. >> you disagree? >> what about? >> who am i to disagree with all you smart people.

chime in, david. said it before, if you're buying cars and people are, and buying homes and people are, if you're traveling and people, are the money runs out. >> no, there's no data. >> you're not buying a lot -- >> talked about this, brian. >> the data do not support. >> record car sales, home sales on fire. if you buy a home, you don't go out and buy a fur coat. >> here's the thing. 300 million americans. they are going to buy 16 million -- >> time-out, time-out, time-out. >> 16 million cars, 1.someing a mont >> break this up for us. >> brian is making the, is obviously going to be oil prices. as that starts translating into the pump going into the holiday spending season and crimping down on the consumer spending habits so that's something we're watching carefully. you guys are right, sentiment is terrible for the consumer going towards the end of the year, that's a very crowded hedge fund short. if we keep getting data points the consumer is doing okay we could see a squeeze until the year in the retail sector. >> watch incomes.

that will be a critical factor that we'll be watching here to see when we look at the report on friday what's happening to earnings and to the workweek. >> the stock buying -- the stock buying public has gotten narrower, we know that, right. fewer people own stocks, so the people that own stocks, right, are probably at the upper end. they have done bert. i'm not talking about everybody else in the world or in the economy. i'm talking about our audience and the people who buy equities. am i the only one, guys, walking up to a 401(k) plan that's near a record high, my home is worth more than a few years ago, i don't mean me brian sullivan, the people that own equities. they are seeing these things so gas goes up 25 cents, interest rates goes up 5%, that won't hold them back. >> the numbers are pretty easy. the top 20% of income earners earn somewhere -- own somewhere around 80% to 85% of the stock market. >> and spend 80% of the money on discretionary numbers. >> i don't think the numbers are that high. the upper income braks do account for i'd say close to if

not a majority of discretionary spending throughout the economy. again, i hate to keep sort of jumping off or agreeing with steve. i think the larger story here is the income side of things, and if you start to see that turn around, again, if you look at a longer-term chart in 15, 20, 25 years, year over year basis, towards the bottom of the range. >> sorry to jump in, you hit a touchy spot to me because to your point, steve, the last point in the graphic on beige book, san francisco cannot find construction workers, one market. you know that leads to wage inflation. dan just talked about incomes. you can't find somebody, what do do you, keep paying more money until you can find someone. >> we can use a little more wage inflation. >> i agree. >> look, i would be watching very carefully the jobs report on friday for clues on what the fed is going to do but we have had a noticeable run of better than expected data the past several days, and it looks like the third quarter may not be as bad as some had thought. looks lake we may be, too, which

is not great, but it's better. >> good enough. >> good enough. >> that's -- that's the good phrase. >> we had hopium. >> close enough for rock 'n' roll. >> it's good enough. >> david and dan, steve, thank you. >> thanks, guys. >> he was an anchor. he was good enough. >> he one was an anchor. another snafu for the nasdaq, bertha coombs and the nasdaq's latest trading trouble. bertha without saying the acronyms can you explain what happened. >> reporter: one against, a problem with the feed that issues the nasdaq quotes, that gives you the prices on what nasdaq stocks are trading in. the nasdaq says it did have a system failure this morning that lasted six minutes between 11:35 and 11:41. they say the problem stemmed from a server failure, but they said the backup systems kicked in and were able to bring things back after about six minutes. of course, within the last two weeks we had the mother, i'm calling this one son of flash

freeze, the mother of flash freeze, august 22nd saw the nasdaq flat line for three hours when they were unable to bring things back quickly because nobody knew how the system would fare once you brought everyone around. this time people could trade around. trading was not disrupted, but what's interesting, guys, is that the nyc arca says it lasted longer, and it was broader. you'll recall a couple of weeks ago the nasdaq had pointed the finger at arca as being the beginning of the spark that caused things to break down. >> a lot of fingerpointing on. thanks for the background, bertha. now to mary thompson at the nyse and also rick santelli in chicago because as we're hearing from bertha it does seem like the nasdaq learned from the flash freeze about getting the word out more quickly. what about the nyse? >> the new york stock exchange came out as well, and actually they were saying something different from the nasdaq saying that actually the nasdaq listed stocks, they were halted for nine minutes, not six minutes as nasdaq said, and that they

affected all the tape-c stocks, not just a subsector and they did say everything did operate as normal, so, again, the two sides not quite in sync with what they are reading on this outage was. just want to give you a quick update of the markets in the wake of the beige book, not much of a reaction on the markets. pretty much held steady for eight markets after the beige book numbers were released, pulling back a little bit as we take a look at the dow, coming off just a little bit in the last couple of minutes or so of trading. we just ran through some of the groups we thought might be affected by the headlines of retailers because there was a pickup in consumer spending and the banks because of consumer credit and home builders. again, very little reaction to those headlines. >> certainly seems so. thanks very much, mary thompson. rick, any reaction to the beige book there? >> very, very little, and as i talk you can see, looking at an intraday 5, hovering at 172. we're at 173 before the beige book and looking at a new high yield close going back to july. 10s, hovering at 2.89.

that currently is their high yield close going back to july of 2011. two-year notes at 45 basis points, doesn't sound like a lot. those are going to be fresh multi-year highs as well. dollar index, hardly moved down about a fifth of a cent, a, beige book didn't make a difference and b, interest rates continue to be proactive with higher yield closes. >> rick santelli, thank you very much. >> all right. on deck, another blowout month for car sales. one dealer says it was the best month since the old cash for clunkers program. a closer look at how hot it really is. >> and if you're on facebook you have to pay attention. there's a new controversy brewing over how your profile could be used in all those sponsored ads that you see on your newsfeed. plus, how one very angry airline passenger used twitter to get revenge. the basics, you know. i got this. [thinking] is it that time? the son picks up the check? [thinking] i'm still working. he's retired. i hope he's saving.

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women's apparel retailer francesca's plummeting today after it missed analyst forecast. they have been hurt by slower customer traffic and also in the gifts category. other gift components are taking a hit as well, bed, bath and beyond and williams sonoma as well. >> thank very much. >> august was a stellar month for auto sales. phil lebeau, what's been selling

and what's not? >> everything has been sell, mandy, and i know that sounds clic cliche, but it's hard to find any dogs in the august sales numbers. take a look at all the major brands and what they did. you will see these increases in sales, anywhere between 12 and 22%, 23%. the important thing is to know that these are all anywhere between 5% and 7%, better than what wall street was expecting and bmw brand sales in the month of august, listen to this, up 45%. transaction price for the entire industry topping $31,000, close to an all-time high so what's driving what brought people into the showroom in the month of august? three things. stronger consumer confidence, heard this from all the auto executives on the sales conference call today, the best correlation to auto sales. a big labor day weekend because those are part of the numbers we're seeing today. saw huge traffic into the showrooms and lo interest loans and leases. put all of that together and more people, even those who

might be struggling financially saying, yeah, i want to step up and buy a new car or truck. now what we're going to see is what we saw from ford today, an announcement of a fourth quarter production, ford increasing it by 7%. that's 50,000 vehicles, almost 800,000 will be the production rate in the fourth quarter for ford. look for other automakers to also raise their fourth quarter production. some have already done that incremently, and i finally want to show you guys a chart of daimler because mercedes came out today within the last 15 minutes and announced an increase in august sales of 20.5%, so, again, brian and mandy, it's across the board, luxury selling and low end is selling, trucks are selling. you really -- i mean, this is one of those months where almost every single thing is working for the auto industry. >> it has been a heck of a run for the auto industry and we'll talk more about it now, phil, because we love your reports. these are big generators of the economy and let's go right now to the front lines and speak with two auto dealers. one says august was the best

month since the old cash for clunkers program. let's bring in tammy darvish and scott adams, president of adams ought motive group out in the midwest. tammy, first off to you. okay. strongest since cash for clunkers. do you have pricing power? is there any holes in the story? >> no, there's really no holes. we have availability and plenty of models, not only the very low interest rates and availability of financing, but in many cases it was also tied to consumer cap cash so it really wasn't an either/or situation. we were able to like multiply them through their transactions. >> and i understand that august was a great month for you as well. the question is sustainability. can the good times continue? >> well, as we know, august was two days longer than the normal august because of labor day, but we're sure hoping so. when you have dedigit ouble-dig

increases, manufacturers were hoping that this would happen, a lot of cars coming in, a lot of cars on the trucks and we're hoping for another above average september. >> you have a lot of brands in your stable so what in particular was flying off the lot? >> good for news in the midwest, trucks, trucks were big news. >> that is good news. >> and that means construction is up and people who use trucks for their jobs, plumbers, everything like that, it was big news for us and big news for all the domestics, and sport utilities were also real big for us. the one small kind of down is really small cars. gas prices aren't really high enough to make super small cars be very popular, but, boy, big trucks sure are. >> yeah. you know, tammy, and it's interesting, too, we talk about housing. 30% of buyers are buying all cash for homes which is mind blowing. talk to us about the typical buyer. are they stretching and taking these crazy nine and ten-year

car loans, taking all cash? dig a little deeper. who is buying these cars, and how are they doing it? >> i don't think many consumers are actually paying cash, and with so much 0% or 0.9% financing available, they are taking advantage of the opportunity to have a four or five-year loan at virtually -- for no cost to them at all through very, very cheap financing available. not only are the rates low, but you have so many lenders now competing for business that in the last few years just weren't out there. >> well, sorry to jump in then. so if rates rise, because it looks like they are, is that going to kill car sales because people, tammy, have made that argument about housing. >> well, the housing rates have started to trickle up a little bit, but we've not seen that in our industry, and, you know, for ours to go from 0% to 0.9% or 1.9, you're still talking about very, very low available financing for consumers. >> you know, scott, phil lebeau

has done some excellent reporting on this subject, and he said that because these car sales and auto sales have been so strong we'll have to see a number of the automakers out there expand capacity to meet that demand. were you in a situation where you actually ran out of any models? >> well, two of the biggest car plants in the world happen to be in kansas city, one for general motors and one for ford. no, we weren't really running out of anything. there's not rows and rows and rows of them but a little bit on what tammy said. car loans right now are relatively easy to get, car loan delinquencies are the lowest in history and a lot of people have found again leasing. leasing is not great for every person in the market, but i leased one for my own son. i couldn't keep a car in a lot myself for my own son to drive as cheap as i could lease, it so when he goes to school on monday driving his new toyota, he is going to be really happy, so there's a lot of things putting people in the market right now. >> fantastic. let's hope the good times roll.

thanks so much, tammy and scott, reporting from the front lines of auto dealerships. breaking news on qualcomm. jon fortt, what are you hearing? >> reporter: mandy, qualcomm's got a new smart watch, smart watch wednesday called the talk. i'm going to have the ceo paul jacobs live here in saying oh, on "fast money" and he'll have one on. an interesting take which they have on the watch which they are expecting to retail in the $300 price range. their goal is not to sell watches long term. it's to promote their technology inside the watch, and it's not specifically a chip inside the watch. i'm told it's not a qualcomm chip at the heart of this thing. it's the display, the display which qualcomm tried to sell in the past and did not do well at and they are saying here this display is better than what you have in other technologies, more power efficient. it will deliver color and have days of battery life, somewhere around five days of battery life. you'll be able to touch, it

swipe, do what all the watches these days seem to want to do which is manage calls, manage e-mails and manage text messages from the watch. it will have wireless charging. the goal here from qualcomm's point of view is to get other oems interested so they adopt this technology. also the possibility to link into qualcomm's all joined software and platform to allow this to communicate to even more devices. this is qualcomm making a platform play beyond just the chip and beyond the display trying to make its name in the emerging wearables market. >> jon, can't wait to see it. do me a favor when you talk to paul jacobs later today, can you ask them what i.p. they have inside of that, the other samsung, apple, whoever may have to license for them. i would love to know. >> mirasol is others and i'll join, of course, another. qualcomm has had trouble getting some of those things outside of chips and wireless to catch on, but they are making their play

early here in wearables with the watch they are trying to put on trying to force competitors to take a look. >> jon forth, thank you very much. samsung unveiled its galaxy gear watch and we'll talk more about that later in the show. three five-star stock picks, think airlines and drilling. >> and a cool story of a florida family who literally struck gold over the weekend. how much they found and where coming up. [ male announcer ] i've seen incredible things.

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just want to very quickly mention that we're up by 102 points on the dow. guess where we were at the top of this hour, brian, when the beige book came out? 102 points. we've moved zilch. let's get to what's going on in the emerging markets because for all the concerns about the ems melting down, it is worth considering that two of the biggest in that category, brazil and china, have actually outperformed the s&p 500 since the u.s. index hit a two-month low back on the 24th of june. russia has pretty much performed

in line with our own market and similarly european markets such as portugal, spain, france and even italy, for all of its political headlines, have outperformed the u.s. since that date. interesting charge. >> well, we've been talking about europe for a year. scott-minute said put your money into europe. >> list dwroend him. >> if you listened to our show for a year you'd be ahead of the game. is that bragging? yeah, who cares. >> brag away. >> i'm not bragging for me but-minute. the senate foreign relations committee is voting on authorizing a potential military strike on syria. it comes as the president says he has the right to strike with or without the full congress giving the green light. eamon javers monitoring the fast-moving developments. >> hi, brian, talk about fast moving. it's one of the split screen days up on capitol hill, and take a look at these two shots. can you see what's going on on the senate side of the capitol and what's going on on the house side of the capitol. on the left-hand side of your screen there, you see secretaries kerry and hagel,

they are testifying before the house of representatives and making the case here. on the right side you see the senate, that's the chairman of the foreign relations committee, senator menendez, they are marking up this legislation and what ought to be in it. we'll see that vote maybe this afternoon. on the house side it's not as clear what the timing will be, but this is splitting people all over capitol hill. democrats are split on this. republicans are also split on it, including senator john mccain who is arguing here that he'd like to see some tougher language. take a listen to senator mccain. >> we need to have that provision that calls for reversal of momentum on the ground against bashar assad. if bashar assad assad remains in an advantageous position, he will never leave syria. >> reporter: meanwhile, senator mccain making the argument there that he wants to see tougher

language that in effect commits the u.s. military to tilting the playing field of the civil war, not necessarily getting involved but changing the momentum of the war there. meanwhile, senator ted cruz is saying he doesn't think the u.s. military belongs in this fight at all. >> inserting the united states in a sectarian civil war in syria is extraordinarily perilous and could we will have the unintended effect of advancing the interest of the al qaeda terrorists, other terrorists that are on the ground. >> reporter: so, guys, tough decisions being made up here on capitol hill right now. we'll bring you all the latest as soon as we have the results of this senate vote, and we'll where it goes from this. >> very high stakes. thanks very much, eamon javers. coming up next, three small-cap stock picks with a thee-star rating and a disgruntled passenger taking to twitter to vent about his lost luggage which is getting the attention

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we have a number of stocks that you absolutely must know about in street pops. first up, consumer friendly ebay. >> added to the best ideas list, outperform and the target is $64, and if you're on the radio that's 23% higher than the current price. ebay, mandy, really been kind of a dog all year. lagging the market, but yesterday did mark the company's founding back in 1995, sonny. >> okay. shedding a little light as well. let's take a look at what's going on. we have e-trade as well trading numbers not seen since august 2011. >> up 8.4%, the announcement received he go try approval to pay a dividend to the parent company. evercore out with a note saying timely slightly better than expected and thinks more distributions will come and price target, keep note, is actually below where e-trading is trading right now. >> and this is our under-the-radar pick. >> yes.

>> here's why we threw this in here. $141 price target. the stock is currently at 118, about a 19% to 20% upside. recently had fda priority review. pharmacyclics, 118, it used to be $7 and this is a five-year chart. some people that became very, very rich. congrats. >> small caps beating both the s&p and the dow this year. the small-cap russell 2000 index is in fact up more than 20% year to date. let's bring in our small-cap index guy, craig hodges, manager of the fire-star rated hedge fund. your fund is beating the s&p year to date, and you have three stock picks for us, right now usairways, encore wire and hercules offshore. let's start with u.s. air. >> you know, we've been in the stock a couple of years now.

got more than a double, and it was a shock to us that the justice department is trying to prevent the merger with amr. i don't know whether it will go through. i think it's a 50/50 chance to go through. they might take some concessions off. i think there's two airports where the market share would go up 10%, 12% which isn't a huge deal. they could probably negotiate that down. let's say it does not go through. u.s. air would be a very smaller airline and a very profitable airline well in excess of $3 in earings. stock around 16. i still think it's a buydown here. >> i love you, craig, you know that. a little concerned about wire salesman flat for a couple of years but the evaluation is continuing to go up here. what makes encore wire fit for you? >> a really interesting company in mckinney, texas, north of dallas. a low-cost producer in the building wire space. what's happened? that's been a horrible business to be in, of course, construction and, you know, that area has been extremely weak,

but in the face of that, they have done a tremendous job of keeping costs down and actually having profits go up, so when demand comes back into the building space, people buying copper wire, this company is really going to make a lot of money and in '06 and '07 earnings were in the 4.50 range so you see the earnings potential over the next couple of years, and the stock could really and there's been tremendous consolidation in the hodges fund, look for industries that we have high barriers of entry that have really shrunk as far as the capacity, and there's just a few players left, and encore wire is one of the few players left in this business. low cost producer. unbelievable operator so i think it's -- it's a stock that's got a lot of potential over the next 18 months. >> we will check it out. also hercules offshore, sir. >> yeah. operates in the gulf and jack-up driller. after the horizon the gulf was a tough plac tonight. it's coming back.

befo horizon accident, hercules earned in excess of $3 a share. i don't know if earnings will get back there. we're looking for around 80 cents next year, but around 7.5. we thit's gotmendou upside, and you're going to see the drilling business in the gulf i think do a lot better. you'll see the day rates continuing to rise, and i think there's a lot of money to be made in hercules as well. >> got it, up 20% year to date but a very choppy chart over the past 12 months. craig, thanks very much for joining us, as always. >> my pleasure. are you on facebook? if so, then you have to stick around, because up next there is a brewing firestorm over one of the site's privacy settings. >> but first the review of samsung's new smart watch. seema mody got to try it on. she will join us with her thoulgts, but before that, scott wapner, what's coming up on "closing bell"? >> coming up during the most important hour of the trading day, obama care implementation sunday way, but the new health care law is impacting the job market in unexpected ways. that story, plus samsung

unveiling the first smart watch, but is it a smart fashion option. time for the smart watch debate, and after the bell the ceo bob benmoschy joins maria bartiromo to co-host. all that and much more coming up on the "closing bell" as mandy and brian return after this.

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we should have seen this coming. it's real been in the works for decades. >> right away, dick tracy calling hemlock homes. calling hemlock homes. >> go ahead, tracy. >> the able sable fur company has been robbed. take the retouchables and get over there fast. that is all. >> or he'll punch you in the mug, see. samsung debuting its new smart watch today. seema mody one of the first people to get their hand, i guess hands, on it. >> let's say your hands are full with two shopping bags, can you

make or answer a call by speaking into the galaxy gear. second its aesthetics, stainless stale. lightweight, it didn't feel heavy, and similar to a smartphone, has a touchscreen, swiper mafgation which makes it easy to move from pictures, to contacts, to messages. does seem like a device you would have in addition to your smartphone. >> brian the. >> seems as if everyone wants to jump in on this. you've got microsoft and apple and qualcomm and google and the question is whether or not this will be something that real takes off. i'm not entirely sure i want to have like communication device on my wrist all the time every single day. >> i think that's something that we'll have to figure out if consumers really want another device that they wear that they can use to access messages, e-mails, to make calls. it will be something that you use in addition to your smartphone. we're still not sure of the price point of this device.

that is something that we'll have to watch and, of course, could potentially impact demand. second, the device does come out in a variety of different colors. one thing i want to note, expected to hit the market later this september and could potentially beat apple. we're waiting for apple to unveil a similar device. in one way samsung did beat apple to this smartphone race. >> i don't know. >> could be a huge market if people actually wore watches anymore. >> a lot of people don't which is why i'm really wondering whether it will go beyond something that's a fun gadget, and if as seema says it's supposed to be in addition to your smartphones, hang around a smartphone, a lot of people hang around two, you've got a smart watch. how many smart devices do we need? >> need more smart people. >> we need more smart people. >> potentially our favorite story of the week. a new london sky describer is reflecting so much light in a narrow area like a magnifying glass, this is true, folks, actually melting cars. melted parts of a jaguar parked

near the building last week. the building's developer has apologized. the 37-story building is actually being called a fryscraper because temperatures have been recorded to 150 degrees fahrenheit. the architect built a similar building in vegas and had the same problem. somebody actually cooked an egg on the street. i'd hate to be an ant walking by. >> very handy if you've forgotten to bring your breakfast. fry up your egg and go to work inside the fryscraper. there is the bright spot. >> still ahead, a facebook firestorm over one of the site's new privacy settings. >> discover treasure discovered off the coast of florida. this lucky find and the people who found it when "street signs" returns.

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got to show you what's going on with green mountain coffee roasters today because it made a real big announcement together with campbell's soups. they will be selling soup k-cups for keurig coffee brewers.

i believe this is the first snack option for the brewer of the green mountain aims to diversify its business clearly and campbell's is looking to make soup more convenient for their consuper. who better to bring in at this particular time than herb greenberg himself looking different from normal. certainly no less great. wonderful to see you, herb. what do you make soup in a little k-cup? >> i make of it that it seems to be i'd say a sign of desperation. this is going to be one of those asterix in brand extension strategies as these companies are sort starting to throw bet of them, everything at the wall to see what will stick. you may roll this at some point in the future and egg will be in my face but i don't think this is going to be something that's a big seller. >> first off, for our viewers that are on the radio, also known as listeners, i just want to describe your outfit very quickly. black t-shirt with a black sportsco sportscoat, black rim glasses. >> you look different. >> dare i say hot, man. you look good, happy, you're

refreshed. you're in san diego, right, good for you. i have to admit, i'm completely jealous. >> very good to be back in san diego, yes. >> okay. >> by the way next week i'll be back in the studio. >> let's talk about facebook here, herb, because igniting a firestorm. social network tweaking its terms of use to clarify how it can legally use your information. set off a lot of new concern about privacy. facebook trying to quell the fears. julia boorstin, before we get back with her and i want to get his thoughts on to create this? >> reporter: brian, first of all, we have to say that facebook has long history of sparking outrage, because its advertising model is built on rev larging information user to make ads social and, therefore, more effective. here's what happened. last week, a u.s. district court judge ruled that facebook must pay $20 million to settle a lawsuit go using names and pictures without consent in sponsored stories. those are facebook ads. the ruling required facebook to clarify its policy.

say if you like something on facebook, it can use that information in ads, and facebook also must clearly explain how to opt out of the social ads. but the fact that facebook says, quote, you give us permission to use your name, profile picture, content, and information in connection with commercial, sponsored, or related content, unquote, is raising concerns that facebook is now looking to quell, issuing a statement to us saying, quote, nothing about the way we serve ads or collect information is changing, and people will still have the option to opt out or limit the audience with whom they share content or information. now, right now, facebook is reviewing the comments it's gotten on those proposed chan s changes. it will announce any revisions it makes based on those comments tomorrow. brian? >> i'll pick it up from there. thank you very much, julia. herb greenberg, what do you think about this? why can't -- they can't get the privacy issues right? is this the beginning of the end for facebook? i'm not on facebook, but if i was on facebook, i have to say i would think twice about staying on it.

>> i am on facebook, and when i first heard about this, i really was very concerned. i heard about it a week ago. and then, facebook's comments today, to cnbc, to me, to others who inquired was that nothing has really changed. but that got me to go looking to see how i can opt out. there's nothing that says opt out. you have to go through layer after layer and know what you're looking for to even get to a point where i think what i did was correct in opting out without the words "opting out" ever being there. i think they've got some privacy issues. they need to better articulate these issues, and what they're doing to their user base. and by the way, there are those who say that most of the users probably do not care. >> how does it work, though? could we steal your head shot right now and use it for an ad, or julia, if i'm hammered, right, and -- you know, on facebook, you could use my picture for, like, you know, a sobriety clinic, like "need help?" >> well, it's not that -- it's not that exciting, brian.

it's basically the same way it's always been. facebook ads, the most effective facebook ads are sponsored stories. you have, say, coca-cola, will they send me a message and say your friend herb really likes coca-cola, click here for more information. that ad is valuable, because it tells me that my friend already likes that brand, so it means i'm more inclined to pay attention. now, the whole concept only works if people don't mind if their information is being used. if herb just went on yesterday and changed all of his settings so it will no longer use him in those ads that i see, then facebook needs to make sure that people are still engaging. the key thing to remember is that ads are more effective if they're social, so facebook is giving us the option to opt out, and there are easy ways to do it, herb. i'll send you some links. but it doesn't really want us to opt out. >> right. and i actually -- no, go ahead. >> i'm sorry, we do have breaking news with phil lebeau, so i do apologize to cut you off. great to see you, herb. thanks, julia. phil, what have you got?

>> reporter: yeah -- monthly sales rate every single month in the auto industry, out with calculation for august. 16.09 million vehicles. that's the pace of sales for the month of august. why is that significant? >> wow! >> it's the first time since november 2007 that the auto sales rate for a month topped 16 million. again, auto data saying the monthly sales pace for the month of august, 16.09 million vehicles. guys, back to you. >> what was the record, phil? 17 million in '05 or something like that? >> you're talking about on an annual basis? yeah, about 17.5 going back early 2000s. but there were some months in '99-2000 where you had 19 million, 20 million. i mean, real isolated months. >> yeah. >> correct. that particular month. but it's the annual that you really want to look at, and everybody is now saying, look, we're going to be at least in the upper 15 millions for the rest of this year, or for all of 2013, and over 16 million as you

head into next year. >> mandy, did you ever buy the hummer you were looking at this. >> that's not just good enough. that is good. thank you, phil. up next, a golden find off of florida. [ male announcer ] at his current pace,

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requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present. today, a sign of the times, a disgruntled british airways passenger bought a promoted tweet to vent about his anger

over his lost luggage. he spent $1,000 for tweets like this. don't fly at british airways, the customer service is horrendous. or this. at british airways, i can has my luggage back now, using h-a-z. british airways has apologized. his luggage has been found. a florida family struck gold quite literally over the weekend. they found $300,000 worth of gold over the coast of florida. gabe gutierrez has the fantastically sparkling story. >> all we wanted to do was find gold. >> reporter: for 16 years, ship captain eric schmidt and his family have been in the diving salvage business looking for sunken treasure. >> five seasons, at least, and we found, i believe, three gold coins. >> reporter: but then came a jaw-dropping find. 64 feet of gold chain weighing more than three pounds. five gold coins and a gold ring, even porcelain. >> ready for this? >> reporter: believed to be from

the qanzhee dynasty. they set sail from ft. pierce and just 150 yards offshore in 15 feet of water, there it was. a haul they estimate may be worth $300,000. and historians believe much more could be out there. >> you hate to say it's a dream come true, but it's a dream come true. >> reporter: the bounty came from a fleet of spanish ships ripped apart by a hurricane in 1715 and spilling gold and civiler across the ocean floor. >> it's littered all over the place. >> reporter: the hurricane inspired the 2008 movie "fool's gold," the fortune the storm left behind is why this part of florida is called the treasure coast. >> it's about the history. it's who wore this. the respect for the person who was in the new world and had this made, and this was probably his entire life's savings. >> reporter: to the senior schmidt, it's about something else worth more than gold. family. >> every summer we come out here and work together and sweat together and do stuff together.

which isn't something you get a chance to do the way we live much anymore. it's very special. >> captain schmidt and his family will have to share some of their find with the man who owns the salvage rights to this part of the atlantic, apparently, and some will go to the state of florida, as well, to be displayed in museums. >> good for them, though. great story. literally going after it. hey, everybody. thank you very much for watching "street signs," the most important hour of the trading day is straight ahead. >> "closing bell" is next. hi, everybody. good afternoon. we enter the final stretch. welcome to the "closing bell." i'm maria bartiromo, and we're not the new york stock exchange, where no one saw it coming, but once again, in triple-digit rally mode. scott. >> i'm scott wapner in for bill griffeth. i got that right today. signs the economy is showing strength with big auto sales taking center stage. that was really one of the big bright spots today. almost across the board, the

numbers astounding for the automakers. >> i think as we approach the close, things quiet down a bit, given the jewish holiday, volume probably lightens up, light volume already. but nonetheless, look at this market. up in the triple digits, 110 points higher on the dow. also on the show, very special "closing bel e