during the cadillac summer's best event, lease this all new 2014 cts for around $459 a month or purchase with 0% apr and make this the summer of style. well come to "street signs", everybody. in the everything boom and maybe the everybody bubble, yeah, that's the cover story on "new york times" today. so we're asking, how much might that headline be driving stocks lower? or could it be this?

let's look at the video of rocket fire out of the gaza earlier on today, just about an hour ago, two rockets reached as far as israel's financial hub tel aviv. let's look at what 2450er doing. the dow is off about a half a percent. the s&p is also down by 0.6%. the nasdaq the biggest percentage loser. but brian, i know you picked up on a big mystery out there. >> the mystery seems to be where is the money going, mandy? obvious when stocks sell off, something else gets bought. you take money from here and put it over there. maybe bonds will go up, gold. that's not what's happening today. yes, bonds getting a bit of a move here, but yields are not down. in fact down fractionally, down lower than they were in may, and june's well. five basis points, whatever it is on the ten-year yield, who cares? gold is down 0.3, so we're

seeing gold at 13, 16 bucks, and i want to show you, a company that provided data, i was going to show you my screen, pretty much all in the red. the point is this, we're not seeing what we call, and i hate this phrase the risk-off trade. the money just appears to be going away. >> we're seeing some moves in some sectors, for example, simply the commodity etfs, recently that's the representative of aluminum and copper, which is at a three-month high, but i think the big torrie is everyone is concerned, because we're seeing solar stocks, the problem i have is i don't consider them very representative of the overall market. what i pay attention to is bigger moves and bigger stocks. i know that everyone is worked that pandora is selling off or linkedin or facebook. have you ever looked at the

valuations of pandora? 150 times forward earnings, brian. linkedin is, i don't know, 90 times? facebook even is 40 or 50 times forward earnings, but the markets have expanded. somebody thinks there are more value, and i think it's right for somebody to stop and say, are we sure that these numbers are right at this point? i think it's perfectly healthy. >> but bob, you get my point, though. gold is down, bond market not moving hardly at all. in fact, the only thing i can really see that's up thankfully is coffee. for which i have a bet with herb, and i'm going to destroy him. >> there's a lot of money going into inverse etfs, so the volumes are notingly heavy. going into those kinds of groups, and people can always put money in cash at this point. i don't think that's the major concern that's out there. what i'm concerned about is a

number of these big names, particular in social media, i think are clearly overvalued, people have twice now -- this is the second time, we're seeing it now for the last two days, saying are these stocks really worth what we are trying to make them claim to be. we've soon expansions in some of these names, and i'm not sure it's worth it, and i think it's great the market is skeptical. >> and i'm glad you ended on social media. shortly we'll be talking with julia boorstin, thank you very much. >> 150 times i think pandora is forward earnings right now. think about it >> incredible. thanks, bob, for bringing it up. let's also bring in dan greenhouse. in recent days there's been a lot of pundits out there calling for a pullback, some even a correction. there are a few notes flying around today, feeling smug, yeah, yeah, we called it. however, i would like to know if this is just maybe a couple down

days, a shakeout, or is it the start of something bigger? >> i have no idea whether it will be bigger or not neither do any of those other people. we've had a nice run-up here, and the stocks paying for it are the stocks that benefit theed most on the way up. the s&p got to a point where roughly 90% of the index's members with over the 200-day moving average. there were a number of internaling we could point to. >> that was going to be my question? we're due for something, what's the key indicator? what's the thing you're watching the most? >> listen, it's impossible to know whether you're due for something. that's a dumb statement thrown around on cnbc all the time. >> that's not nice. >> well, but -- >> play nice. >> it's not a dumb statement. it's a flippant witness with no means for it, due for a correction. >> a nicer insult.

>> the fact is we've had a nice run here, and the stocks that we're -- whether it's the start of something larger, nobody knows. >> stewart, is this the start of something larger? >> i don't really think it is. >> do you care if it is? i'm not trying to be flip, either. mandy and i have been doing this for a long time. since when is a couple percent decline a big deal? >> right, not even a couple. we have really all year and for a while. fundamentals have been more volatile. look, we've had a 9% increase in the market since april when investors realized we were climbing out of that first quarter hole. that's a strong move. i think we got a little bit ahead of ourselves, a lot of investors paying a great of attention, are we below it? we hit it, we moved over it, you know, that's not really a

material number, but the fundamentals are material. the fundamentals look good. we see continuing fundamental growth, a little profit-taking right now. more volatility going into the second quarter earnings season. >> this has been the home of hopium for about three years. in fact i'm getting nervous, because everyone seems to bullish. tomorrow morning, stewart, who will be the number one thing you are concerned about vis-a-vis the stock market? >> i'm mostly concerned about something that might happen, whether it's a bounce up in inflation, or something that happens geopolitically that puts the consumer back in his basement watching tv and not in the stores, not buying cars, et cetera. that's the biggest thing for our economy that will slow things down. we are gruing slowly, but it's pretty broad. the mesh is a lot tighter than a few years ago. that's what i'm most concerned about. i'm not concerned about a rapid increase in inflation right now. i think that we're going to have

a nice earnings season. i think the second half earnings will be better year over year than the first half earnings, if we look at a lot of leading indicators. >> if i could jump in, what's going on in europe is a bit of a problem. i know we're pointing to what's going on in gaza, and obviously kneel irwin's front story, everything is overvalued, is a problem. i've been relatively upbeat for some time, but what's happening in europe right now is something to be paying attention to? >> in which way, the greeks and span yards can come to the bond market at yields less than we are paying, the slowdown? germany, or that isis said they want to go to the mainland or motherland, which apparently is spain. >> i'm not going to get into the terrorist thing, but leading aside the periphery. we know what's going on in bond yields, though there's a big difference between nominal and

yield, but really it's flown under the radar by an enormous magnitude what's going on in german,, and they've been meaningfully weaker than expected. some data haven't been very strong. listen, nobody thinks that europe was going to grow 2%, 3%, but the data in the last two, three weeks has thrown even those modest expectations into question. >> what about european banks, dan, does that worry you? >> sure. there's another story going on, that orem european banks will be targeted by -- sure, they may have done something wrong, in which kayb targeted is appropriate. >> does it worry you in the context of a follow-through? >> no, we've weathered a lot over the last couple years and likely to weather a lot more still. bull markets don't just end because commerce bank has to pay a fine. at least in the positive sense right now, nothing exist

stenchal appears on the horizon. >> i called you goldilocks last -- >> and my entire office made fun of me about that >> i do have to add the problem with the unexpected is you can never expect it. >> you are suv a wise man. very wise words. thank you both. we'll have much more on this market move, plus the rocket fire, which is a serious concern over tel aviv. scary stuff. plus the sell offin momentum stocks, "street signs" is back after the break. [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ e my mom works at ge.

financial noise financial noise financial noise financial noise

investors keeping their eyes on the always tense middle east. with increasing violence in israel is growing tension around the world today. eamon javers has the latest. >> tensions are rising in the middle east. 40,000 reservests have been called up for active duty in the last few days. hamas has fired more than 100 rockets in the southern part of the country. now firing at tel aviv in the central part of the country as well. this is video of tanks and bull dozers preparing in case israel's government calls for a ground invasion, israeli army released this video a short time ago. ships and helicopters have been hunting the sites. the latest violence began after three teenager were found debt, and then what some are saying an act of revenge.

it's not known if there are any casualties in israel from these rocket launches. president obama meanwhile, today calling on both sides to show restraint, and to put an end to acts of retribution. eamon, thank you very much. let's bring in the resident scholar michael rubin. thank you for joining us, especially on short notice. where does this go? >> ultimately the israelis would like to do everybody possible to avoid a ground offense in the gaza strip. while it's easy to get in, the question is how do they get back out? the biggest variable which has changed in recent months, of course, is that in egypt, there's no longer a sympathetic government in egypt for hamas to fall back upon. so hamas may have tweaked the bear in a way it doesn't want to. >> i believe that a spokesman for prime minister netanyahu said israeli forces are currently acting to put an end

to this once and for all. do you think it will be once and for all, or will it create a tit for tat situation? >> ultimately what we obvious have happening is israelis respond and inflict a great deal of pain. ultimately you're going to have the international community or perhaps the united states get involved diplomatically in order to make it quiet. there comes a quiet for a few weeks or few months, but idea logically hamas will not stop its violence. ultimately the question is whether they can reply. in this case all eyes will be on the islamic republic of iran, which has become a major supplier for ha has. >> diplomatically what can the u.s. do? >> ultimately the u.s. isn't going to be able to do much. the united states put its reputation on the line when it acquiesced to a joint government, a coalition government between fatah with president abbas and hamas, and we see where that has fallen

apart too just a couple weeks later into conflict. this seems one more example about where the united states has chosen a side only to have it blow up in its face. >> michael, thank you for joining us. we do appreciate it. >> thank you. we'll keep an eye on the developing situation. did taylor swift have something to do with the nasdaq sell-off? we'll explain that. as we head to the break, there are winners on the day. in fact the best performing stock is taking the other ones to the cleaners. it is whirlpool. we're back after this. 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.

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and a real credit report. join now at experian.com with enrollment in experian credit tracker. all right. so this is the socl, the social media index, and we're showing it to you, because perhaps no group was hit harder dan than the so-called social stocks. we're going to bring in julia boorstin, which, by the way, i think you also have something interesting regard taylor swift and pandora? >> that's right. that's right. now, brian what we are seeing is a major social stock sell-off, a reversal of the internet stocks we have seen in recent months. looking at the board twitter shares are down about 6%, linked

in down about 6.. and facebook shares are down now about 4%, and the social media etf that socl, is also down nearly 4%. now, included in that social media etf is digital radio service pandora, which is also suffering. its stock is down nearly 6%. it was off nearly 10% earlier on persistent concerns about competition and the licensing costs. those costs could go higher in taylor swift's vision for the future of the music industry comes to past. in the "wall street journal" she writes in an op-ed that music is a, quote, valuable thing that, quote, should be paid for. she predicts that, quote, individual artists and their labels will someday decide what an album's price point is. like swift, many artists want to raise the royalty rates, the very same race that pandora wants to lower, so see, brian,

pandora -- or taylor swift's win would be pandora's loss. >> she is a role model. there's so few left, and she is one. thank you very much, julia. to be fair, i did not know this either, you would assumes biggest holdings would be facebook or linkedin. usual always know what you own when you buy the etf. >> before i embarrass myself, we should previous that you didn't know. >> is it twitter? >> ten cent. >> the chinese company? >> ten cent, linkedin, facebook. >> really. >> so know what you own. >> that's a really good point. it's a big night tonight

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between those two realities, an investment decision will be made. >> i don't think they're going to invest. i want them to, but i feel like i let them down, i let my family down. looks like a lot of blood, sweat and tears. you can catch the premier tonight at 10:00 p.m. eastern and pacific right here on cnbc. >> all right. so we are about to show you five big stocks that should about on your radar. we call it street talk. we do it every day. >> plus our herb greenberg will give us his take on the collapse of corinthian college and who could be next. if you have moderate to severe rheumatoid arthritis, like me,

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about one of the mysterious things happening in the market today. that is that pretty much everything, with the exception of just a couple things like coffee, are actually moving in tandem to the down side today. what we do find, though, is a couple stocks moving higher. one of them is really interesting. walmart, the biggest gainer, despite the head of the u.s. operation of wall matter, bill simon said while it's improving, consumers don't yet have enough confidence to boost their spending. >> so he was talking down the own sales, and it's the best performer, colonel mustard with the candlestick in the library. >> you sure about that? >> it always is. if you're a daily viewer, you know this is or daily rundown. it's a big day today, the markets are selling off, so let's go. 3m getting an upgrade to buy. ivities that is the most fractional gain you could ever

seen. unone cent. argus said the company can delivered growth. soon stock number two. t mobile with a -- >> not helping the stock, but wait until you hear the target. but bimo's target, that's 20% more than t mobile is trading right now. do keep this in mind, please. the average target of wall street analysts, $34.33. that's about two bucks more than a stock is trading. just something to note. >> okay. noted. stock number three. upgraded to a buy -- this could also go under the radar. >> i've never heard of this, but

hey -- >> not far from where i live. >> not a random mention, by the way. the target was set at 36, based -- prepare for the fan club. the stock is increased nearly 28% in the past six months. a 3.18% year old. in 22 states, based in denver, colorado. >> my ivory tower is far away from there. stock number four is goldman sachs, not feeling so fresh. getting a downgrade to sell from mutual. cost inflation, hey, fed, are you listening? cost inflation? also increased competition. the target $27, stock is at 31.65. you with do the analysis, goldman sachs slamming tfn today. >> and we've also got -- this is

the real under the radar name. >> it was so under the radar we couldn't have talked about it even a couple weeks ago. the market cap is just big newspaper now. the target $34. be careful, though, the stock is already up 600-plus% from where it was. the average target is 13.50 a share, well above what the stock is now. but there's only six analysts that cover the name. so we're putting it out. up nearly 100%. >> let's talk corinthian college.

herb greenberg, you saw the writing on the wall. so let's have a listen. >> what's going to happen when the hard reset occurs through the changes in regulation? is this the hard reset for you? >> no, herb, it's not. what you have is a short-term and long-term trend, which is the need for career-focused education. >> herb, we want to bring you in here. this is not the kind of thing up to do a victory lap, obviously, when we're talking about the company going through different times, but we're also trying to work out for the whole sector who's going to be next. >> by the way, it is a reset, a big reset, and right now the stock, if you look at a stock as one of the big survivors, the next are really two companies, i.t.t. education, which ten years ago was the focus of an

fbi raid, and somehow slipped through that crack, and then education management, which operates a bunch the art institutes around the country. >> let me tell you, as the farther of an art school student, i can tell you how heart for them to get jobs. that is an art school graduate, how hard it is to get jobs. what's interesting is they've been saying 75%. they were talking 87% 75%. the art center design in pasadena, one of the great art schools in this country, if not the world, was claiming job placement rates. the goism is cracking down. if they want to get student loans, they have to immediate certain deadlines.

two points, in that interview, did we -- number two, more sailian hopefully, i'll take the other side. i hear your points, and you've been spot on. however, 85 schools being sold, 12 more being taught out. if we see those not reopened by someone else, could that reduced then supply increase demand at the other for-profit colleges, because people, yes they've got some issues, do want to attend them. there are plenty of people willing to pay. >> well, there are people willing to pay, but much less, fewer people than before. >> but fewer colleges too. >> well, and remember, post-secondary, we're talking vocational schools and other times of two year and four-year secondary education institutions, you get away from for-profits. remember, the entire sort of group, even of the private

schools are facing some challenges right now, so i think you're in a market that's totally in turmoil, and a will fly away. look, what you're saying makes sense, they're not all going away. there are some that certainly skated through this much better than others, but it's about student loans. it's about getting people in the door, recruiting them in. this is a gravy train, for goodness' sake. it was a ridiculous gravy train, the lobbying efforts that went in to keep things going. i keep mentioning i.t.t., and i've done a lot of research back then on the industry, that company in particular, and you wonder what was really going on. now we're seeing indeed these companies were for marketing them -- >> did you know that ford was the number one car producer in the world, right, when they started out in the 1920s? you know how gm got past ford? they offered something never before heard of -- credit. it's amazing when you have low

rates and easy credit. demand sometimes goes up. please note my sarcasm. >> this was student loans, this was -- this was -- >> that's what i'm talking about. >> yes, but this was beyond it. it was government tack pair money, cheating the system. anyway, the good news is this is all getting reeled in, we're seeing the reset. itches it is a reset, and certainly worth watching the sector. it is the largest college every to be wound down in this particular way. herb, thank you very much. from street talk to talking numbers. let's talk alcoa. they're reporting their sec results. get this, they got booted from the dow and everybody alcoa is out of dow, guess what? the shares are up 75% since they got booted out. let's talk numbers with rich auerbach. i'm going to start with you, rich. whenever we saw a gain, i think sometimes things may be par all

bowlic and unsustainable. am i right or wrong? >> there's a lot to like about this chart, but i think if we get a strong print tonight, you want to sell into that strength. i want to show you exactly why you get into this stock a little cheaper here. that's the absolute bottom, the do you bottom ticked alcoa there. it climbs above the 50-day moving average. last october, we haven't looked back. that's an extremely strong trent. you see that well-defined trend line. what i like is within the context of this pattern we develop a bullish ascending triangle. that gives us the direction of the move and a nice measured upside targets, which in this case is 1480. you havely that's where the stock is right now, but obviously we're up sharply. what you want to do is take profits into that measured targets. when you zoom out, brian, and look longer term, there's reason to like acoa for the first time in years. the reason is that break bam above the longer term, for the first time in almost six years,

brian, that tells me the longer-term trend might finally be up for this stock after many years. i like this stock once again, i like it much better on a pullback. this is a stock you sell into earns particularlivities fundamentally, andrew, are you getting excited about alcoa? >> it's the ultimate of the dogs of the dow, but the ceo did a great job. as soon as that happened, kind of starting last fall, the company has reinvented themselves. they called themselves a global leader in lightweight engineering now, so kind of the whole idea of relying on the smelters is kind of moving in the secondary place for alcoa. they're moving in the right direction, so the higher aluminum prices this year is definitely helping current earnings, but i think the fact that the company is kind of reinventing themselves sets them up longer term. >> we got two likes, thank you very much, rich and both gentlemen. be sure to check out the online edition in partnership

with yahoo finance the. we have a quick market flash, dom, what are you watching? >> mandy, brian, look what's happening with cummins engines. the stock is spiking up to session highs on news it's increased the quarterly dividend by 25% to 78 cents a share. the board also authorized a stock buyback of up to $1 billion in shares upon completion of the current $1 billion share repurchase program. again that stock is up about a half percent, but still all day in the red. back over to you guys. up next, one of the hottest areas in housing. mrs. cadillac used to be the symbol of american luxury, right? maybe not anymore. cadillac has a big problem. it's not a recall. we'll tell you what it is. tdd#: 1-800-345-2550 searching for trade ideas that spark your curiosity tdd#: 1-800-345-2550 can take you in many directions.

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brother of raj raj rat numb. the case had been grauly whittled down to a single conspiracy count that he had conspired with his older brother. the jury finding him not guilty. we'll have more as it becomes available, but again, the first defeat in u.s. attorney's barrara's long-standing crackdown on insider trading. well, chinese buyers are the biggers foreign invest respect in real estate and they're going high end. robert frank joins us with the details of a new report that just came out this morning. >> yes. overseas buyers snapped up a report $92 billion of u.s. real estate over the past year, up 35% according to the gnarl association of realtors. is up 72% last year. the more preferred expensive homes in california, washington

state, new york, that's what they really like. canadians actually rank second followed by the uk and india. which states attracted the most foreign buyers? florida ranked first with 23%, followed by california, then texas, and then arizona. it turns out the overseas rich aren't buying homes for themselves, but for their money. only 40% of these buyers are using their homes as the primary residences, the rest using them for investments and vacation rental properties. it's more like a safe-deposit box than a house, and once again proof that the u.s. is a a global safe haven. >> it's the highest ground. good for real estate, not so great for buyer right now. it is. college housing, a little bit too much smelled like your old roommate earl. not anymore. companies are moving in, building much fancier housing

for students. let us bring if diana olick, pretty fancy herself sometimes. >> reporter: well, thank you, brian. driving down the main drans to the university of maryland, and i passed three brand-new swanky student apartment building, now leasing, ready in the fall, now to the visitors center. right across the street, a huge construction site that says student housing coming soon. these are all high-end buildings. what is driving this student housing boom? >> international students are a big component of student housing in america today. if this particular property, this year our international population is about 9%, next year it's 19%. >> reporter: that's an american campus communities new chestnut square building at drexel university in philadelphia, the largest student housing reit. they research what the students want, and they say they want group living with common kitchens, so this building has four-bedroom suites with full

kitchens, private bathrooms, universities which would rather keep their dwindling funds are now turning to the private sectors, even right on campus, because they know what every range of student wants. >> it does tailing amenities to draw up people, to have expectations that the room they'll have here is a bit look the room they had in mom and dad's house, so they look for these finishes. >> reporter: let me say it's nothing like the rooms i had in college, but interesting what robert frank was saying about the chinese bore i buyers, a lot of them are buying homes so their kids can go to school here in the u.s. that is driving population of students more towards student housing. also interestingly baby boomers are retiring to college towns like this one, and they're sucking up all the off-campus apartments, which again leaves the students coming back to campus. we have more at realty check.cnbc.com. >> thank you very much. even a small dank dark room with

a guy named earl earl is better than living at home with mom and dad. >> you didn't meet earl. >> good point. cadillac used to be the name of luxury cars, but now not even in the top three. phil lebeau, what happened? >> they've faulten to number five. that's what happened. yes, cadillac is number five behind audi. what stands out? their competitors are all having great years. their sales are under pressure because of the increased competition, particularly on the lower end. the cadillac ats sales, meanwhile, you have the audi a3, the mercedes cla class, they're cutting into the ats sales on the entry level market, and then there is, well, one offering that has clearly missed the market this year. >> i worked hard, create your own luck, and you've got to believe anything is possible.

>> remember this commercial? ed cadillac elr? we first saul it on super bowl, got a lot of airplay. well, they've only sold 39 on models this year, it starts at 75 grand. that's part of the problem. >> you think that's part of the problem, or the entire problem? >> the price? >> yes. >> well, the price and the range, i mean, if you're going to spend $75,000 for an extended-range electric vehicle, a lot of people are saying why don't you buy a model s? why spend it for an elr? >> it looks like a volt with some -- >> that's the other criticism, which is why cadillac dealers are like, we don't want to, we do not want to sell it. they are begging them to sell it. they've sold only 390. that's not a bad vehicle in any year. that is -- that is -- >> embarrassing. >> yeah, it's embarrassing. hard to put a peg on it. because it is something you just don't see very often. >> plus, is that part of the problem? for 75 grand for a car, you also

need a better commercial. is it possible that's the worst commercial ever made? >> probably not. i'm not going to argue with you that it's not a good commercial, but you can't blame it all on a commercial. if it was a quality vehicle, it would overcome bad marked, but no bad the marketing and pricing and targeting of this vehicle hasn't connected at all. >> they just got it wrong. thank you so much, phil lebeau. i'm not bashing cadillac. >> book. >> but you've got to like that style, space-age chic. >> very personal. >> boxy. more than five years after the crash, and too many people out there on main street, just made me feel like it's not a strong recovery. why not? mostly because wages have not rebounded. how to get jobs and salaries growing again. that was next.

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that's why i always choose the fastest intern.r slow. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator. the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. so, it's been a wild day out there in the markets. we're down by triple digits right now, but we are off the lows. we've rebounded somewhat, but as you can see, we're off by 102 points right now on the dow. well, that "the new york times" article may have had something to do with it, right, brian? we brought this up at the top of the show and bill griffeth and kelly evans, the guy that wrote

that article, i understand, is going to be on your show. >> he will. when's the last time the word bubble was on the front page above the front fold of the "the new york times"? oh, yesterday. >> "welcome to the everything boom" and quite possibly the everything bubble. i can't figure out, and i wonder what you guys think, whether we just don't have any way of describing the kind of activity that we've seen here? in other words, are we throwing this all in to just kind of the kitchen sink catch-all term for a couple of high-profile developments out there, or do people just not understand, you know, how finance works? i mean, it's just very interesting. >> of course, we don't know whether we're in a bubble, right? only time will tell. >> exactly. >> but it's the word, it spooks people, doesn't it? >> we're in a bubble bubble. >> we're in a bubble bubble. who knew that we were in a cupcake bubble and we didn't know it until after crumbs -- >> i hear your point, that you only know bubbles when they pop, but that's not entire true. i'm not bragging, but ten times

income for a house in phoenix in 2005, you knew things were insane, right? >> brian, where do you think things are insane today, everywhere? nowhere? >> it's hard to know. listen, the reality is, you can make an argument for stocks being a little bit heady or not. >> they're always going to have -- you're always going to have economic distortions somewhere. >> that's true. >> and what neil's doing is identifying many of those distortions that exist right now. >> the free agent basketball market, there's a bubble, i'm sure of it. >> does it always lead to a bust, though? that's the question. >> only for the knicks. >> yes. >> i was going to say, we'll have to ask kobe bryant. >> especially with melo going to the lakers, but we'll see. >> see you top of the hour. >> go to the lakers, please. >> all right, thanks, guys. we'll look forward to it. all right, here is what drives some people nuts. the stock market is trading near record highs, corporate profits are at record highs, but wage growth for most americans has been stagnant. that the single biggest barrier to realizing the american dream? let's bring in ivory johnson

from delante wealth management and joe neroff from neroff economic advisers. if more people don't participate, how do we ever raise everything up? >> it's difficult because when workers have more money, businesses tend to have more customers. and what we're seeing now is as wages are stagnant for a lot of americans, not necessarily because they're lazy or they're not working hard or that business owners are greedy, it's just the function of creative destruction, where their skill sets is not so much in demand and that transfer happened in the blink of an eye. i think as people upgrade their skill sets, there will be a shortage of welders, we're spending $200 to $300 billion a year on energy infrastructure, not exactly good for the sociology major, but for the workers who have those skills, their wages will start to go up. the money they spend, which is two-thirds of our economy, will increase economic growth and i think that's how we get things moving again. >> joe, this all feeds into raising the minimum wage, but my question is, if the minimum wage goes up, there are a number of

small businesses and franchisees out there who have said, you know what, we just can't afford it. so, could it backfire, maybe, and kill jobs as opposed to creating better jobs and more money? >> well, i don't think it would necessarily kill jobs. i think if you look back to 2005-2006, you'll have seen that there are a lot of small businesses, a lot of franchises that were paying $8, $9, $10, you know, nine, ten years ago to get labor when it was scarce. is it going to affect corporate earnings? possibly, but it will increase demand. and the issue isn't strictly one of skills. i mean, if you take a look at the nfib survey, they constantly simply say they can't find enough workers. part of it is the fact that businesses don't want to admit they have to pay up for workers after six, seven, eight years when they haven't had to do that. that's really part of the issue, and we see that the minimum wage issue will largely disappear, i think, in the next couple years.

>> ivory, it's interesting, though, because i guarantee you a lot of our viewers right now are going to throw something at the tv. because if they work at a public company, they've probably watched the stock rocket up, they can see the results every quarter, record profits, record profits. then their boss says, i'm sorry, mr. smith, there is no money in the budget for a raise, and they're ticked! >> well, they should be. but expenses are a big part of labor costs. and labor costs are a big part of expenses, and when they reduce labor expenses, which, by the way, is why corporate profits are so high -- it's not that they're selling more stuff, it's that they have fewer expenses. and the number one objective of a business is to create shareholder value. and to joe's point, if you look at the two cities with the fastest job growth for small businesses, it's san francisco and seattle. well, guess what, they also have the largest minimum wage in the country. so, i think it's a component of jobs -- by the way, job growth, job openings are at a seven-year high, growing at a much faster trajectory than people being hired. so, i think it's a component of both things.

and as they become equilibrium, i think we'll start to see the problem start to mitigate a little bit. >> joel and ivory, we would love it talk more about this subject, no doubt very shortly we will. going to come up a lot during corporate earnings season, which kicks off tonight with alcoa. thank you. coming up, grape of thrones. we're going to explain that story ahead. ♪ during the cadillac summer's best event, lease this 2014 ats for around $299 a month and make this the summer of style. ♪

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wines," the 12 different varieties representing a different house or a group of people. the company says red wine or strong and robust houses, while the whites have a more cunning and mysterious houses. >> called drogo rose. does the work, though. >> he ended up very badly. maybe not. maybe not. wonder what would happen if you -- oh, we've got to go. thanks for watching. good afternoon. welcome to this special edition of "closing bell." i'm kelly evans down here at the new york stock exchange. >> and i'm bill griffeth. it's about the stock market sell-off. the nasdaq posting the worst decline of the day again. seema mody, what's going on there? >> bill, high-flying growth sectors that have led the nasdaq up and down this year once again showing signs of weakness. it's been a tough day for biotech, social media and internet stocks also getting hit on the chin, namese