attack rebels in iraq if they come within a certain mile radius of iran which would, of course, really complicate the situation. brent crude is up better than 2% now. something to watch as we egoi i the afternoon trading session. >> that will do it for "power lunch." this to yhave you in the buildig though it was due to a big traffic snarl. >> "street signs ""begins now. a tesla founder elon musk crazy like a fox or just crazy? a genius move musk just made with his patents. plus another city falls in iraq as iran now has reportedly sent troops into that growing civil war. apparently the government may have to take a mulligan on phil mickelson. did they completely botch the alleged inside trader

investigation? we'll dig in, mandy. we kick it off with the big news, ceo elon musk opening up his patents to competitors. he makes it sound so altruistic, doesn't he, phil? we're giving away our patents so the world can benefit from a common rapidly evolving platform. sounds good, but is he going to benefit from this? >> they could benefit ultimately if more electric squeak vehicl developed and if there's more demand for electric vehicles. we've heard about this in the tech industry. this is completely unusual when it comes to the auto industry. here's what tesla announced it's going. opening up all of its patents. at least several hundred right now. he says it could eventually grow to be several hundred patents. the whole goal, tesla hopes opening the patents will spur electric vehicle development by other automakers. >> you know, but we will say, phil, how about this?

is there is a key sort of phrase in elon musk's blog which is, as long as others use these patents in good faith. right? i mean, listen, that's an important turn of phrase there. >> absolutely. >> is this a case where -- >> that's how it is in the tech industry, too, brian. nobody does open source and say, sure, two ahead and run roughshod over us. it's all within good faith. >> i imagine if i was tesla, i would define in good faith like this. please feel free to pay and build out electric car charging stations which by the way might just help us. >> well, or use their technology. so that they could then say, look, we've got the supercharger network and now we have other automakers who are using our blueprints for their technology and they're coming into our network as well. i mean, there is no doubt that tesla is not doing this thinking wouldn't this be nice, the whole world would be better if we all open up -- look, they are businessmen as well. in fact, we have some sound from the conference call which just wrapped up within the last half

hour. here is the question that was put to elon musk. were there people within the company who said you're nuts, why are we doing this? here's what he had to say about those who are questioning this move. >> as a company accelerating, you have the advent of new technology. that what is represents true competitiveness. it is not the static picture of oh, i've got this patent. then that's just -- then you're just on a shot clock until that patent expires then it's game over. if somebody wants to, you know, shareholders want to vote against this, they need to do that and can also vote to fire me if they like. there's no sort of protection against either of those things. >> and he admits there were some people who were, quote, wide eyeye ed when he first said let's open up our patents. time will tell if this spurs the development of more electric vehicle technology within the industry. clearly that has to happen. tesla realizes at some point you need some scale within the

industry for electric vehicles to truly take off over the next 10 to 20 years. you can't keep looking out and saying, some day we'll have more electric vehicles. >> indeed. he's a very clever man. i'm sure there's a big grand plan in there. thank you for that, phil lebeau. let's turn to the quickly developing situation in iraq. the white house saying within the past two hours that nothing is ruled out as islamist militants advance closer and closer toward baghdad. we are covering this story on all fronts. so let's kick it off with our chief international correspondent michelle caruso-cabrera. give us the latest on this, michelle. >> the group linked with al qaeda is on a massive offensive and believed to be 70 miles from baghdad. the group is the islamic state in iraq and its leader calls himself, no joke, maybe he thinks it's funny, abu bakr al-baghdadi. more extreme than al qaeda, founded of course by osama bin laden. the iraqi government is desperate asking the united states for any kind of help

possible to defend the capital. president obama spoke about the situation two hours ago. >> i don't rule out anything. because we do have a stake in making sure that these jihadists are not getting a permanent foot hold in either iraq or syria. >> take a look at this video. what you see are iraqi army uniforms, soldiers in the iraqi army abandoned their post, stripped off their uniforms to hide amongst civilians as the al qaeda linked group advanced toward baghdad. the u.s. trained that army and its performance in this the battle does not speak well of its professionalism and valor under fire. general mccaffrey on cnbc last hour. >> it's simply astonishing when you see a military force start unraveling. they lose confidence in their own generals and fellow soldiers. there's 270,000 people in the iraqi army. there were 30,000 troops at mosul and they started to walk away. >> yesterday the militants torched a major oil refinery on

iraq's main road leading from baghdad to the north. not far from saddam hussein's hometown of tikrit. today iraqis in the central part of the country are fleeing towns trying to get ahead of the on slaugt. back to you. as you might imagine, oil is on the rise not just here but europe as well. let's get to jackie deangelis at the new york mercantile exchange with more. >> good afternoon to you. all the news michelle mentioned, the updates on the geopolitical situation in iraq causing a lot of volatility down at the merck. we have brent crude making a 2% jump today well over the $111 mark. that's a 52-week high. we're also watching west texas intermedia intermediate hoverering around $106 a barrel, up a half a percent right now. this has a lot of momentum here according to the guys in the pits and after president obama came out and said he's not ruling anything out. there's more volatility to come they think. traders saying they could'sly

see $107 a barrel for the wti price. if the instability continues maybe we could go as high as $112. in terms of the production, i want to give you some of these numbers. iraq saw a 35-year peak in production back in february. that was 3.6 million barrels. it since dropped off and a lot of analysts do not think it's possible to meet the 4 million barrels a day target that this ministry, oil ministry there, has set. also a couple of unanswered questions on the table here. open-ended questions, if you will. will the united states potentially release spr here to offset the problems that we could potentially see from iraq? and also a lot of people asking, we're producing 8 million barrels a day, will president obama start to export that oil? guys, back to you. >> okay. very interesting. we'll keep on eye on the oil market. thank you very much for that. let's bring in a former u.s. diplomat to iraq and bobby gosh, international editor at "time" magazine. when the president is saying he's not ruling out anything right now when it comes to iraq, what would you advise him to be his response?

>> well, truthfully, this is a little late, and similar to what's been played out in syria. we advised him in 2010, constantly from 2009, 2010 that a residual u.s. military force in the north was extremely useful in maintaining the conflict between the arabs and the kurds. now, that obviously at that time we thought that was the greatest threat to civility of iraq. that's kind of on the back burner but on the other hand that issue has been resolved because of the islamists coming in through anbar and through mosul. so the iraqi army laid down their weapons, they flee. that means they've left kurcook and the traditional homeland of the kurds. it is the home of one of the super giant oil fields. >> very important region. let's also bring in bobby for a second here.

the dow is down triple digits. we got news about an hour or two ago, you may have known this beforehand, bobby, that iran is now sending revolutionary guard members ostensibly to fight al baghdadi. who is fighting who here? >> that's a good question. if that is indeed true, the "london times" reporting that a couple hours ago. if that is true, instead of calming things down t could make things even worse. a lot of iraqis, even those who have no track with this terrorist group, even shiites who are pro their golf to not want to see iranian boots on their ground any more than they want to see american boots. iranian soldiers fighting in iraq, no matter who they're fighting against, has a potential to destabilize what is already a pretty chaotic situation. >> and what do you think is going to be the knock-on effect on oil production? because at this stage, a lot of movement in oil might be psychological, the fear of what could happen. what do you think potentially will happen? >> okay, so let's step back a

bit. we're talking about 3.8 million barrels of oil out of iraq total. now the potential is much more than that and what they have been working on down in basra and the southern part of iraq. they're hoping to get at least 4 million this year, but 8 million or 10 million over the next few years. but in reality of today, if all of iraqi oil is cut off, which is by the way kind of a sour crude, it's discounting to brent. it may not be that disruptive, but what's developing now with the kurds, they're going to secure the northern field. so that's 800,000 barrels a day. >> and the pipeline runs through from as well. major pipeline to the port. >> it's the only pipeline out of the north and there was supposed to be a connection from the south to the north. that's a key peopleline. everybody knows it's been blown up and not been operating efficiently. the kurds, not the iraqi army,

but a serious military force. they will be able to secure the pipeline and there's an opportunity for maliki and barzani in iraq to negotiate a deal that may -- >> very complicated. we should say that we have to say that oil has been higher than this three times the past three years. >> that's right. >> oil has gone up, 110 bucks a barrel three times the past ten years and the u.s. economy is -- who's funding this army? a standing army is expensive. is al baghdadi essentially a pirate, looting as he goes along or is there a nation state that is funding this? >> well, they do get donations from people, the kind of people who were previously giving their money to osama bin laden and other terrorist groups. once these guys began to get successful and started taking territory, a lot of that money starts coming to them. as we heard, when they went into mosul, one of the first things they did, went into the banks and took the must oney out of t.

some reports, over $500 million worth of iraqi currency from the banks in mosul. they're not a standing army like you and i would think. they don't have to pay salaries and provide for rations. a lot of people who fight alongside them are doing so val voluntarily. money they pick up goes toward buying arms and ammunition, communications equipment because they need to be able to communicate with each other. they're not paying steady salaries to everybody who's fighting their ranks. >> bobby, just to finish up, as the president is mulling what kind of response is necessary or appropriate at this time, how long does iraq have to be the u.s.' problem? >> well, it clearly is not the u.s.' problem at the moment, but if this guy keeps making these advances, if this group makes these advances, claims territories, sits on top of oil fields and oil refineries, chances are then they will get to get more ambitious and start targeting outside of the middle east. there's already been a connection to one attack in france. we know a lot of european

fighters are fighting alongside him. we know there are possibly some american volunteers as well. this problem does not stay contained there for very long. doesn't mean there have to be u.s. boots on the ground but doesn't mean we can sit back and say that's their fight and not ours. if we do that as we have deone n the past historically in places like afghanistan, those things come back to bite us eventually. >> literally a one-word answer. is it possible what bobby just said about robbing the banks? we know a lot of american money went into rebuilding those areas. is it now possible that this terrorist-led group is essentially using american money to buy weapons to fight in iraq? >> no. >> why not? they're robbing banks of $500 million. >> that's oil money. iraqi oil money. they have a $70 billion import of dollars and so that's their money. >> that's good to know. >> we've had a lot of money put in there, yes, i understand that, but three years later this is iraqi money from their development of oil. that's what's so important here.

exactly what he was saying. control those fields, do we really want to have it in the hands of islamic extremists that are bent on a -- >> we may not have a choice. >> we have to leave it there. >> not just u.s., the west. >> thank you for your insight as well. the situation in iraq is having an impact on the defense sector. a lot of defense manufacturing in los angeles, jane. what's the reaction, what's the news here? >> pentagon, of course, as you know continues to provide iraq with billions in military aid, but the country has been making its own purchases with the pentagon's blessing. most recently iraq agreed to buy three dozen f-16s by lockheed martin. the f-16 iq, a multibillion dollar order for lockheed. live leak had a video last week of the first one being delivered in ft. worth to the iraqi ambassador. reportedly fully loaded including missiles by raytheon. lockheed says the iraqi orders will keep the f-16 assembly line

alive through 2017. now, iraq has also agreed to buy billions of dollars worth of apache helicopters from boeing, hellfire missiles also made by lockheed. the same time reuters report ee earlier this year that iraq agreed to buy ammunition from iran. this concerns u.s. officials. analysts point out american-supplied equipment in mosul has fallen into the hands of gjihadists. quote, policymakers will be questioning the effectiveness of providing baghdad with even more military hardware, though it does expect to see more u.s. missile equipped drone activity, not necessarily, though, new drone purchases. defense shares all down today. more than the broader market. as we then look at the year to date of the defense index versus the s&p, a ubs note out yesterday expects, quote, more downside than upside for defense. mandy and brian? >> okay, thank you very much for that, jane. we have more breaking news. i believe this time it involves ford. phil lebeau? >> mandy, this is an interesting

story and one that a lot of people should be paying attention to. approximately 200,000 people in the united states will be getting compensated from ford. why? because ford says it has gone back, done some testing again and determined that six of its models had mpg ratings that were too high. and the difference could be between one and seven miles per gallon depending on which of the six models were tested including the c-max hybrid, fusion high did, mkz, ford fiesta as well as c-max energy and fusion industry, the plugged in electric versions of those vehicles. what kind of compensation? $150 and $1,050 depending on the model that's impacted. ford lowering mpg ratings for a number of its models. back to you. >> thank you very much. thing to is off by 1.9%. call it a downward facing stock. yoga gear maker lululemon is getting stretched today. the company's biggest shareholder has completely lost

his zen. >> no buts about it. in that story. time to put on your thinking caps. a mystery chart for you. can you name this stock? best performer this week in the s&p 500 that's not involved in the possible sale of takeover rumors. that would be ibg and family dollar. who's the best performing name? we'll let you know. we're back after this. did you remember to pay the dog sitter?

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today after reporting a 60% plunge in profits. the drama does not stop there. let's get to courtney reagan with more. as if the report today isn't raising red flags. statements made by the founder yesterday should have already had them waving high and loud. >> again, right? i mean, not only is the company struggling to hold that warrior pose issuing disappointing guidance going forward for the full year, but there's fighting within that lululemon family again. so founder and board member and large stakeholder chip wilson continuing to stir it up at lulu voting against the current chairman and another board member saying neither fits with the core values of the company. when asked about the division on the earnings call, current ceo said very candidly this. >> our parents are fighting and it's awkward. >> yeah. that was kind of awkward, too. potdevin continued to try ex-to plain it's uncomfortable but not a distraction from company business. lululemon has a loyal consumer but struggled to recover from

last year's see through pants recall. the new ceo calls 2014 a transitional year as it works on new product design and revamps its manufacturing process. some analysts think the period of investment may actually last longer than a year. it's been a rough go. >> yeah. let's bring in retail analyst mary epner. >> hello, brian. >> we don't talk about what goes on off camera, but your actions say everything. just say that and i think we're good. >> let's move on. let's move on. is this a company that is facing a real leadership crisis or is this a company that is facing relatively normal growing pains because they have grown so rapidly? >> they have grown rapidly. i think they're facing product problems. and they, the whole idea of lululemon is they're supposed to be more advanced in tech fabrics and we've not seen that. in fact, we've seen it get worse because they had see through pants last year. everybody else in the athletic space is performing very well and eating their lunch. you can find lulu-esque pants at

much lower prices. we talked about this before, courtney. >> they have leadership problems and now have business problems. >> you know what, brian, they have a little bit of everything. yes, they have problems in leadership and the founder talks about the core values and the culture, but there seems to be problems at home as was stated. so when you have that, we all know how that goes. so it trickles down and there are a lot of issues. >> and to try to broaden their target audience. you've bought pants, haven't you, you've bought gear from lululemon. you told me you tried -- >> men's division is growing. >> we looked around because we talk about the stock enough. listen, i was just trying to have full transparency. that was the problem. >> that was the problem. >> oh, come on. >> here's the problem, they're trying to attract a more male audience yet you say they haven't really adapted the environment to cater for that. >> no, you walk in, it looks like a women's store and the

women have been buying it for men. the men's product is usually at the back of the store. i don't think brian would go in the fitting rooms. >> i went in looking around and i had to ask if they sold men's items. >> oh, because it wasn't immediately obvious. >> they said, over there. >> you came away empty handed? >> i wasn't buying that stuff. i don't do yoga. i can't even tie my shoes. >> some of the men's product, from folks on twitter said, i went in, i was open minded. the fit is all off. the size i think i should have been in the top was very different from bottom. they have product issues with some of the new male clothing as well. >> the only thing i heard is performing well is the younger version of it. and there are affluent teen customers wearing it. unfortunately, it doesn't move the needle for them. so for the immediate future based on what they've said today, it doesn't sound terrific. >> in terms of overall retail, what is working and what isn't? >> well, interestingly, bad for lulu, athletic continues to perform well. athletic wear. >> are you talking about

athleta? >> athletic -- >> i thought you were talking about the company. >> underwear is taking from lulu. private brands. athletic and athd lettic shoe - >> in terms of stocks in this category, where would you put your money? >> i don't follow stocks the way courtney does. i would say product wise i'd go for underarmor because of their potential growth in women's. >> underarmor stock has -- they outperformed nike. what kind of running shoes do you use in your frequent jogs around the mark? >> i don't own running shoes. that's not true. i have reeboks from the 1980s. they're sparkling white because they're not used. >> i'm wearing mine right now actually. >> thanks, guys. >> thank you. okay. we're about to tell you about one sector that's hitting major turbulence today? >> yeah, possibly a big mulligan in the phil mickelson insider

trading probe. did the government make a giant mistake? "street signs" back right after this. financial noise financial noise financial noise

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so i can reach ally bank 24/7 but there are24/7branches? i'm sorry- i'm just really reluctant to try new things. really? what's wrong with trying new things? you feel that in your muscles? yeah...i do... drink water. it's a long story. well, not having branches lets us give you great rates and service. i'd like that. experience a new way to bank where no branches = great rates. ally bank. your money needs an ally. maybe a big swing and a miss for the government. phil mickelson is likely in the clear in the big insider trading investigation, at least as far as one stock goes.

the "the new york times" now reporting there is no evidence mickelson ever traded shares of clorox. original reporting suggested that investigators are looking into whether mickelson learned of carl icahn's stake in clorox through a middle man, billy walters. "times" says the scope of the investigation apparently was overstated. there may be other issues here. they may be look into other names but now with his new reporting, at least according to one name, doesn't mean he's in the career, but at least according to clorox, his role may have been overstated. >> the report says he's not necessarily in the clear with regards to dean foods, right? >> there might be people in the media that owe mr. mickelson an apology. we'll find out. airline stocks are getting hit hard on the back of the tensions in iraq which of course are pushing oil prices to year highs. let's take a look at some of the airlines being hit here. not just the airlines, folks. this is transports which are down by over 1% today. naturally the airlines are also getting hit hard. look at that. you've got united continental

down by 7%. we have an energy packed edition of "street talk" on deck. >> the mystery chart, we gave you the first hint, a top stop this week not involved in a deal or possible deal talks. the second hit, kansas city. kansas city, here i come. we're back after this. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade.

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okay. let's take a look at what's going on with oil prices. we were telling you a moment ago wti prices crashed through the 105 mark. we're at the high for the year. we have brent here behind us. over the past five years, it's up by about 6 o%. i think it's an interesting chart to look at, isn't it, brian? >> take the full screen off and show the camera. >> yeah, there we go. maybe you can point it out, brian. >> you talk and i'll point. >> okay. >> that's a good team -- >> team effort. might be up 3%, 4% so far this week on the iraq concerns but as we can see, we're certainly not at the highs we have been in 2011, 2012, 2013. it's been higher than where we are right now several times over the past five years. >> the point is we have survived higher oil prices than right now so people don't panic. >> don't panic. time your street talk.

bring back zen to the program. news, views, everything you can possibly use. let's get to. stock number one, valero energy added to the focus list. >> up to -- just under 20% more upside seen in vlo. they think estimates could prove conservative. >> okay. let's move on to stock number two which is ppl corporation getting an upgrade to buy from neutral. >> not helping. ppl down. target increase from 32 to 38. 19% upside. completion of the recently announced riverstone transaction. it's a deal. they like to deal flow. they upgraded the stock. as you can see it's not helping it. >> directv getting a downgrade from neutral to outperformer. >> try to ignore australian banks but have to do this one. the target is moving down from 100 to 95. represents still 14% upside for the closing price on wednesday.

that stock has been hot up 40% over the past 12 months. >> not just the banks, i think you're trying to avoid, australians, under the radar name of the group, triumph group based out of pennsylvania and specializes in manufacturing, aerospace structure components. >> the credit was upgraded to an outperform rating to a neutral. they say triumph group offers growth at a reasonable price. better known as garp. they have set the price target at $88. sto do the matt. credit suisse bullish on tgi. let's talk numbers and golds. joined by andrew berkeley of oppenheimer and company. do you believe gold will stop its fall and become a strong safe haven trade especially now as things are heating up in the middle east? >> hey, brian. yeah, i think, you know, gold can do okay in the near term as a bit of a defensive hedge. equity market is a little overbought. geopolitical tension picking up.

seasonally, gold actually does pretty well starting kind of july, august, into september. i think it's a near-term hedge, it looks okay. longer term, though, i still think the secular dynamics are weighing against gold. what i mean by that is that, you know, true underlying inflationary pressures, that would be coming from any kind of money velocity or aggregate demand picking up, are still really lacking in terms of the recovery. i think that's what you really need it be on, bullish on gold longer term. you have to make the case that, you know, those inflationary pressures are picking up and i just still don't see that. near-term hedge may be longer term, still don't like it. >> do you agree that longer term is still going down? >> you know, mandy, while i can appreciate the utility of gold as a potential hedge against macro unrest, keep in mind volatility has been extremely low so it's made them more attracti attractive. no guarantees gold is going to go higher if in fact stocks have a meaningful correction. when i look at this chart of gold, this is a longer term chart. you can see it's rather

uncompelling. yes, we had a dramatic pullback from the highs around 1,900 but set lds into this trading range over the last 12 months bounded by the double bottom around 1,180, that's your key support. high-end resistance up around 1,400. it's going to take a breakout up above that level to get mildly excited about gold. even then i only see upside to the 150 week moving average. if i have to wait 10% before i buy something and anticipate less than a 10% move, i don't know why i would be buying it here. once again, i think it could potentially be putting in a bottom, but this is not where i would commit capital now. if you're worried about the market, trim some stocks, buy puts but don't view gold as that insurance if you will. >> understood. gentlemen, thank you very much. i don't think i've ever seen rich even mildly excited. have you? >> i've seen him excited. not just on television. >> check out the online edition of talking numbers from yahoo!.

sorry. we're not reading anything into that. >> what's that machine that has the words on it? >> i've got no idea. i've been in tv 15 years. i have no idea what that thing is. kelly evans, you have a big interview i believe coming up on "the closing bell." what is it? >> mandy, brian, good to see you both. there's a lot happening in the next couple hours. in fact, we have a pair of market veterans. we'll talk to bob olstein about the consumer and oil and hear from julian roberts. guys, there's so many interesting things this hedge fund master had so say, whether it was about mayor bill debla o deblasio, immigration, thoughts on google, amazon, he's a user/supporter/embracer of uber. >> did you also know he owns this apparently spectacular golf course in the greatest country in the world? new zealand. >> careful, brian. >> new zealand. >> be careful. >> new zealand. >> you're making me agitated. >> did you guys know he wnt there in 1978 for the first time with his wife thinking he would

write a novel? he came back from that experience, didn't pan out exactly as he had expected and went on to have one of the most venerated two-decade careers in the hedge fund business. 33 funds with $25 billion in assets under management. >> and the rumor is that all the analysts there are actually hobbits. i haven't confirmed it. you don't know. they make for great grounds keepers. fast why the course is pristine. kelly, thank you. >> great to see you guys. all right. here's a question. what is the world's most precious commodity? gold, money, oil? no, no, no. it's water, right? >> yeah, definitely water. >> we need to live. hundreds of millions of people a day don't have access to clean water. guess what, we're going to meet somebody after the break who may just solve that doggone problem. >> his company is, in fact, at the forefront of the growing technology. also, amazon may start a music streaming service like kind of everybody else. and also facebook is giving away more info about you. the user. we're going to get investment reaction to both of those stories and also take one more look at our mystery chart.

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all right. time for our hard money segment. today we're going liquid. companies are racing to help solve our water crisis. let's bring in mark lambert, ceo of ide americas, building the largest desalination plant to the western hemisphere, high old hometown of carlsbad, california. the world is covered in water but it's undrinkable. are you trying -- how close are we to finally really solving this problem? >> hi, brian. hi, mandy. first question i want to ask you is are you properly hydrated today? >> never. >> overcaffeinated and dehydrated. >> overcaffeinated. okay. it takes water to do that as well. so, yeah, brian, great question. we are close. we've been close. and we've actually been doing

sea water desalination globally for over 50 years. here in the united states it's a relatively new, i won't say con september, but it's a new kind of theory to help us with the drought problems. if you're from carlsbad, you know we've been in a long drought in california, texas, other western states. sea water desalination is perceived as part of a portfolio of water management to be able to provide safe drinking water to all. >> that's even sadder here is we still do have problems in terms of getting safe drinking water to a lot of people despite the fact there are already 16,000 desalination plants on the planet. that's a lot of desalination plants and obviously you're adding to it pitwhich is great, mark. in the future, what percentage of the world's drinking water to you think will come from the ocean? >> great question. well, let's look at it in perspective. in israel, for example, conce currently 85% of all the drinking water comes from sea water desalination. not much less than that

throughout the rest of the middle east so they've had drought and water constraints for a long, long time. here in north america, we tend to sort of have assumed all along that water is a relatively free commodity. my projection is that it could represent as much as 20% to 30% of a water portfolio for a place in need. a drought-starved state or region. south america is looking at sea water desalination. mandy, your home country of australia, as you know 20% of water is sea water desalination. it's here. the technology is there. it's really just about deployment now. >> all right. mark, we're going to wrap it up there. doing great work, mark. we do appreciate you coming on. take care. say hi to carlsbad for us. >> come out and u visit. >> thank you. time to reveal the mystery chart. best for former in the s&p 500. that's not up on takeover news talk rumor, speculation. you want to give it to them, mandy? >> yeah, h&r block. tax preparer. it got some --

>> based where? kansas city. >> kansas city, which was, of course, one of the clues we gave our dear viewers. there you go, h&r block up by 9%. >> too bad for igt, talk it may put its name up for sale, and family dollar, to which of course carl icahn friday, everybody got their you know whats in the you know what. stock went up. >> do you use facebook? if you don't -- >> no. >> i don't either. if you do, dear viewer, listen up. facebook is going to give advertisers more information about you. will that make you think twice about being on facebook, make you give up your facebook account? how about facebook's stock? stay with us. we're going to get answers to all of those questions. [ female announcer ] there's a gap out there.

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i'm looking at you phone company dsl. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business built for business. wow. snazzy know opening. okay. amazon officially unveiling its own music service to prime members, appropriately called prime music. does the server stand a chance, though, up against all the other music streaming providers? pandora, spotfy, there's a lot out there. joining us, senior research analyst, gene munster.

gene, i'm a prime member. so i guess this is great. i guess my dollar is going to be stretched a little further. great for me. is it great for amazon, though, joining a very crowded space? >> well, i might just stop you for a second if it's great for you. the service right now is, i reluctantly use the word a joke. >> oh. >> it essentially has a million songs that are on there. spotify has about 20 million. keep it in context. even kn even though your prime dollar is getting stretched further, it's not a service you're currently going to able to use. over time, amazon is going to make it better like with prime instant video. the second piece is the impact on amazon. given it's such a small library right now and given the context to how much amazon spends, it doesn't have much a financial impact. so i kind of think of this as just another incremental piece to the prime story, but it will become more measurable over the next few years. >> just out of interest, how many prime sub skrscribers are there?

i'm not sure amazon gives that information easily. i couldn't find it easily. to you know the answer? how fast are they gaining subscribers in prime? >> 10%. somewhere between 21 million and 23 million is the number of prime subscribers. as you said, they don't break that out. you know, that's growing at num prime stocks. they don't break that out. that's about 40% per year. obviously the biggest reason why people get prime is for the free two-day shipping. stlp all right, gene. let's move on. facebook announcing this morning it plans to release more user data. facebook's stock in the past month is up 171%, the best performing stock of all 500 names over the past 12 months. but does this kind of news make you nervous or is the stock still a buy? >> it is still a buy here. part of the reasons that they have really low ad load. that's the percentage of impressions that they actually show an ad. it is about 7% right now based on our measuring.

industry hours is about 15%. they have a lot of room to kind of move that higher. i think some of the stuff today around privacy and the use of data is topical because it is facebook and i think it gets a lot of notoriety for that. but if you look across the internet, whether google or yahoo! or all the ad networks on the internet, what facebook is talking about today is exactly what's been going on for years. essentially when you are on the internet you create a lot of data and you pay the price by letting them leverage it. >> it's funny, we do these stories all the time about how so and so company is now selling this thing. the reality is, if you can't figure out what a company's product is, you're the product. is there any indication that this type of stuff matters at all? is there anything at all? million people dropped off facebook last week because -- do people care? doesn't seem like they really do. >> as time progresses, less and less people care and i think people more and more are just

kind of resigned to the reality that you have to give up your data. so i think the simple answer is, people don't care. >> what is your weight on facebook? >> we're overweight. 56%. $76. >> another 15% upside. you'd almost see a 200% gain in facebook. what happened to facebook then? instead of saying stocks up 171% over the past 12 months, why was it so low in the first place 12 months ago? >> we or perceived to be worth less? >> the big issue is there is this massive growth in mobile usage and they didn't have a mobile product. i've always shifted from desktop to mobile put them in a really tough spot. i think investors understandably were concerned how they were going to play into that. that big ramp in the stock has been showing that they can make a lot of money in mobile. >> gene munster, thank you very much for joining us on amazon.

the biggest sporting of anywhere in the world starts today. but can brazil avoid the chaos to back up the world cup? launches this year in just about an hour's time. that's next. in a world that's changing faster than ever, we believe outshining the competition tomorrow 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. the porter was so incredibly... careful... careless... with our bags. and the room they gave us -- it was... beautiful. a broom closet. but the best part but the worst part was the shower. my wife drying herself with the... egyptian cotton towels... shower curtain...

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hour's time. forbes said it could earn upwards of $4 billion. >> tv revenue and sponsorship revenue have both been increasing at a rapid clip. if you go back to overall television revenue since 1999, it is up 11-fold. it tells you the power of having a global sport like soccer and being able to own and control and sell those rights. then you've got the big sponsors like coca-cola, adidas. they're paying annually between $25 million and $40 million a year, each. >> you know, john oliver from hbo who finds great pictures all over the internet -- by the way. smart guy. basically, fifa was laid to waste the other night. how dirty is socker? >> you really want to put me

away on this show. look, the scandals have been out there. most notably -- i know in the '90s -- they didn't even have financial reports. so they've cleaned it up a lot. at least can you go look at some numbers and there's some reporting. i don't know what the true payoffs are. >> do you think qatar, which has the 2022 world cup, you think people will re-open that up to a vote? >> i do. i actually do. i think besides the scandal that has been reported, i think one of the reasons -- i think the players are saying, you got to be nuts if you think i'm going to be running around in 130 degrees. i thank thatink that's a good p. there's a better than 50%-50% chance that will happen. >> and it costs a lot to put on a world you cup. >> yeah. the revenues to fifa will be $4 billion. costs will be about $2 billion.

$75 million of that they plowed back into soccer. scandals or no scandals, they do a great job supporting the sport. you look at the winning teams. they got $35 million to that team's federation. total of $77 million to all the teams that participate. they pour a lot of money in to developing stadiums and programs throughout the world. >> yeah. and a lot of people get really angry about that, mike, as we've seen. you got all these unemployed people in brazil trying to eat, they're building some giant stadium in the middle of the amazon rain forest. how about this -- at least brazil will get double use because the olympics -- at least in rio, the olympics are going to rio in 2016. the rest of the country, who knows. do you think the age of these types of giant endeavors -- there's some talk about people not bidding for the next olympics, whatever. does this type of stuff -- that countries are going to say, you know what? it just doesn't pay off. no thanks. to the world cup or olympics or whatever it might be? >> i don't think it's peaked out

but i think there are ways to do it smart and ways not to do it smart. . thing with brazil, it's spending most of its not money on projects that will get a lot of use afterwards. they're hosting the olympics in two years. this is really a brand building exercise for them if it goes off well. economically, there are no long-term benefits for them. >> mike, great to have you on the show once again. by the way, i was in athens, greece for work a couple years ago. the only things used in the venues right now are groundhogs. the country's going bankrupt and they've got these giant stadiums that are going unused. >> a lot of people actually end up in the red after staging the olympics. we've got a triple-digit move for the dow again. we really haven't seen this kind of movement to the downside in some time now but the dow is up by 118 points as we speak. nasdaq and s&p are also in the

red. >> you might get a little bit of shock at the gas pump soon because oil is up. we pointed out that oil is higher, both the kind we use and what europe uses here. oil prices are up. but, oil prices in america have been higher than they are right now at $106 and change a barrel three times in the last year. we've been here before. >> thanks for watching ts "street signs," everybody. >> the "closing bell" starts right now. hi, everybody, and welcome to the "closing bell." i'm kelly evans here at the new york stock exchange. >> i'm tyler mathisen at cnbc headquarters in for bill griffeth. wall street is keeping a wary eye on troubling events over in iraq. militants overrunning cities, taking over oil fields and are now reportedly pushing toward bag. oil prices are popping higher and there is growing alarm globally as some reports say iran is offering its