change at that moment. i think she's an uber--dove given what she sees in the economy, but if she sees something different, i think she'll change her views. >> speaking of views, just a reminder, we have the fed policy statement expected in about eight seconds. it doesn't always come down, but i'm going to talk for 4, 3, 2 -- >> the dow down by 56 points. hampton pearson has the statement. >> the federal reserve committee says beginning in august, the committee will add to the holdings of mortgage-backed security at a pace of 10 billion per month instead of 15 and add to the holdings at a pace of 15 billion per month instead of 20, a net reduction of combined 10 billion march month in those purchases. looking to the economy, the fomc says since it last met in june, the indications are that growth in the economic activity rebounded in the second quarter, the labor market conditions improved with unemployment rate

declining further, however, a range of indicators suggests that there remains significant underutilization of labor resources, household spending, business and fixed investment, while the recovery in the housing sector remains slow. inflation has moved somewhat closer to the committee's longer-run objective. longer-term inflation expectations are remaining stable. turning now to the future of interest rate policy, the fomc says in determining how long to maintain the veero to 0.2% target range, both realized and expected towards its objective of maximum employment and 2% inflation, they say this inflation will take into account a wide range the information, include measures of labor market conditions, and inflation expectations and readings on financial developments. the committee is currently anticipated that even after employment and inflation are

near mandate consistent levels, economic conditions may for some time warrant keeping the target fed funds rate below levels is the committee views as norm at in the longer run. there was one dissent to thinks policy actions. it came from charles placer, who's objecting to the guidance indicated that it will likely be appropriate to maintain the current target range for a considerable period of time after the asset program ends. he says that kind of language is time-dependent and doesn't reflect the considerable economic progress that has been made towards of committee's goals. back to you. >> hampton pearson, let us bring back our panel. all around the tabled, steve leash man, you are deep in thought. you were muttering to yourself. what do you see? >> a couple things, the inflation statement modestly more hawkish in terms of the idea that the amount of undershooting has diminished in terms of the fed's goals, and then this introduction of new

language here reflecting what i just talked about, a range of labor market indicators suggested there remains significant underutilization of labor resources. so they -- >> in english, please. >> they upgrade the labor market in terms of the existing situation, but introduce this idea that there's considerable slack left, which is something that is is it obviously animating or pushing policy out there right now. i don't know that it's a wash. i would be interested to see what david kelly thinks about it, but it's a push me/pull you. it might put the fed further toward ending policy, but the idea of introducing this concept of underutilization, i would point out it's a very uncertainly market. we don't have a singled bharkt for that. >> if we just look at the market reaction here, we've seen some of the losses on the dow and the s&p being peared. the dow is now just down by 27 points. the s&p is actually positive now, the nasdaq still positive. as for the ten-year we're

sitting at 2.551%, we were at 2.54% going into the decision. gold i think, little change, it's gone up just a couple bucks. is this the kind of market reaction you would expect, or do we always see a bit of a knee-jerk, and the market decides what -- >> i think it probably is the latter. i think the market is confused by this. you can see the tension in the statement. janet yellen is actually putting her imprint on it, talking about these other measures, but charles placer at the end of the statement saying i'm not buying this idea that we've got to have this time-dependent idea that we're not going to move on rates until we're long after done with tapering. there is a tension in here. i think the real question is, is this real slack? are these work -- easy to bring into the labor market or bring into employment without raising wages? time will tell, and ultimately i

think the story has been running against janet yellen for a long time. the economy is doing better, but the labor market is tightening faster than they shot it would. it's just interesting to see the tension here. >> it is. we want to get the investing angle here, but it -- the federal reserve is saying stuff like housing remains slow, consumer spend seg moderate. i understand if you go back to the highs of '06 and '07, maybe '99, 2000, that things remain slow, but they have picked up considerableably. how much faith do you have that the federal reserve as outlook and view on the economy right now which seems to me to be dated, appeared old is correct? >> i agree with you. i think the tension inside that meeting must have been significant. the statement says that, my guess is at turning points it's always hard in that room, as we mentioned earlier, nominal gdp is picking up. it has a high correlation with revenue growth.

that should be reasonably good news for profits. i think the economy is doing better. again i think we're moving from 3205 nominal, 2 to 3 real, that's a big difference and a change. >> i just want to point out the surprise of charles placer being the dissenter. richard fisher signaled he did not. i thought he would dissent and program placer join him. there may be another dissent out there unless policy were to change more -- >> and a plasser dissent, that's a big one. >> it's the stanley drunkinmiller mind-set, which is how can rates be so low while the economy is so much closer to normal than rates are. very simple concept. that's something that janet yellen at the next conference, maybe even jackson hole, might explain. >> but what this tension is going to do, the next time we

see forecasts from fomc members, they're going to be bringing forward the rate hikes. that's the way individual members express that is dissent. that may actually condition into the market. i think the market itself will bring forward the expectations. >> great stuff, david, thank you very much, bob and steve as well. the market reporters are standing by. let's get down to bob pisani and rick santelli. >> the reaction down on the floor there? >> i think most of the traders are talking about slack in the labor market, a range of labor market indicators suggest that it remains significant underutilization of labor resources. let's look at the markets here. we actually moved up. i think, and i'm just checking with people down here, the general feel is that's a keep paragraph here right now. there's a little move up. oftentimes markets move down. i think it's probably related to that. most other people also pointed to a slightly more hawk sish

comments. somewhat closer to the committee's longer-run objective, but that statement, a lot of slack remaining in the labor market is the tip-off from the fed, they're going to continue to keep interest rates low. remember the overall concern. statistic morning -- quicker than expected p. the interest rate sensitive sector, because that's been weak all throughout the day, so the consumer staples all have underperformed. the markets if the economy improves, so the telecommunication, the tech stocks, your material names, consumer discretionary financials, those have been the market leaders. >> we're talking of interest rates. let's get down to rick santelli, we're setting 2.551%. >> well, i don't sense the trading floor tensions a faux tension in the room as our guest suggests. the flattening yield curve is still alive and well.

where was all the volatility on this statement? 2s and 30s, look at an intraday, it's back to 57. five solid -- solid hovering at 177, 178, 10s actually a basis point lower than they were before the statement. 30s go up to 332, back down to 328, flattening curve in place, dollar index has a quarter cent higher, it's improved, but we're not getting a lot of volatility. people down here looked at the comments on labor, they went we know that, what they were refer to is underutilization. if you have skills you get a job. if you don't you want to become one of the disappearing, so a lot of the progress has really not been great progress. many down here thought how long would it take before the fed uses that to keep playing the music? and the game goes on. >> i just want to point out that if becoming part of the statement makes it part of the policy analysis, that's why it's important. it's been introduced, something that we have to watch now, from now on, and i think the pressure will be on janet yellen to

explain that more specifically, but it's not insignificant that this idea of labor underutilization is part of the statement, part of the metric that the fed will use to signal where it's going with rates. >> make i'm getting old. >> you're definitely getting old. we all know that. >> i'm not mork or benjamin buttons, but i'm seeing more and more contradictory comments from the federal reserve, and i've been reading there you it >> give me an example. >> bob and youer highlighting the statement -- suggests it remains significant underutilization of resources. three paragraphs later. committee currently judges that there's -- i know they're not directly analogous, but how can we be at 0 for 09 p 25% fed funds when the federal reserve is saying that there's enough

strength in the economy to support a growing job market? >> so that is used -- that particular paragraph -- that particular sentence is for the real tea leaf readers of the fed to snaskt the justification for tapering. the fed said it would taper when it saw the economy could assistant on its own and the labor market was making enough progress on its on, then why isn't it gulf enough to sustain perhaps a quarter of a percent -- >> why don't you ask, brian, the guys who sold bonds like they were going out of style in may and june when ben bernanke talked about an earlier tapering than expected? that's why. the fed is gingerly moving here, trying not to upset bond markets. it wants to bring the markets along with it in a very, very gentle way. what are you upset about? >> is rick still there? james car ville was right. when i die, i want to come back as the bond market. with all due respect --

>> it would be the first in history. you know it's really unfair to look at this fomc committee and janet yellen and think like a ceo of a company that has very important decisions to make that the correct, courageous decision will be made. a bureaucratic organization will always err on the side of not being aggressive. we haven't been in a crisis economy in a long, long, long time. i think that's why the house banking committee today passed the rule for mr. hinesing talking about more rules-based -- >> just for the record there's an opposite conclusion from that, which is as follows, the fed was not aggressive enough early on in the tenure when it came time to provide quantitative easing and that was the real problem. >> no, maybe it was a regulatory role in '05 and '06. they were not courageous then, either. >> that's for sure. >> thank you very much, gentlemen, steve and rick.

ed bond king -- pimco's bill gro is standing by listening to all this, taking this in in a way that only bill can. he will tell you what he things coming up right after the break. 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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all moving higher. as you can see the dow is up by 15 points. at the low of the day it was down a lot more than that. it's been a wild day in terms of swings. right snow we are positive. what is the world's biggest bond fund manager think, though? joining us now is pimco founder and kriismt o bill gross. welcome back to the show, sir. is there any that you disagreed with in the fed statement today? >> well, you know, there are two different tones to the statement there's a hawkish tone and dovish tone. i would take janet yellen's tone. the way i see it and as she sees it, i think clears most of that inflation, as evidenced by the core pce, and importantly i think wage inflation. you know, if you want to look at one thing, look at wages. she would like to see wage indicators rise from 2%

currently to over 3% over the next year or two so under we see that, we may see indicators on friday in terms of the employment numbers in terms of hours worked and the hourly wage. under that happens, i don't think janet yellen and the fed are really going to blink in terms of the current dovish posture. >> i don't know if my point made any sense. i thought the fed was trying to dance both dances. on the one hand they're talking about broader economic strength, but other than the they're speaking with their monetary mouths at having 0% interest rates seemingly forever. if we have to err on one side it appears that janet yellen will air on the side of dovish, keeping the food on the proverbial gas pedal. what does it mean for bonds or stocks, or am i completely wrong? >> it says several things in terms of the yield curve.

it says a more positive curve if janet yellen and steve liesman talked about the importance of the starting point. pimco basically believes the ending point will be 2%, whereas the market looks at 3% or 4%, the old normal times of rates, so it's critical from the standpoint the not just the short-term interest rates, but where 5s and 120s rest, the ten-year yield currently at 255 would be an attractive yield if the fed does stop at 2%, and if it starts in june of 2015. that's our supposition, so therefore we say it's not a great yield, but it's not a bear market, either. >> talking of bear markets or bull markets for that matter, you put out an i.o. and say good evening to the prospect of future capital gains, but bill, you're not saying that asset

prices are necessarily going to go down, just that maybe we should readjust or expectations to something not as good as we've had in the past, perhaps? >> yeah, i think so. when i said good evening. that doesn't mean midnight, about you it does suggest a dusk type of atmosphere in which the night of the past 20 or 30 years, you know, sort of is dampened. that's because interest rates have come down to the rock bottom certainly with fed funds, and in 2012 with the ten-year and long bonds and now we're gradually rising. you know, to the extent that interest rates drive all assets prices, and they do. they drive cap rates for real estate, et cetera, et cetera, to the extend you don't have the tail wind of interest rates for the past 20, 30 years, yeah, it's not good morning or good afternoon, but it's probably early evening in terms of tacit appreciation. so we are suggesting it's income, you know, minimal as it

is, 3% or 4%, you know that's correct will dominate the next ten years as opposed to capital gains that have dominated the last 30 years. >> we want to show our views a graphic, bill, i want to know what in the world is going on. let's step out of the america for a sect. here, ten-year bond yields around is the world. 2.48% in spain, 1.5% in france, and 1.17% in germany, as of about one hour ago. please explain how france and spain -- i can maybe understand germany are better safe havens and economic gambles than the united states? what in the world is going on? >> that's because the market and ecb and mr. drawingi expecdragh policy rates will be at

rock-bottom level for the next four years. it means as part of the eu, part of the ez, basically their interest rates will be low, because the policy rates will be much lower than the united states. let me add this, brian, i think it's a fallacy to continue to look just at the united states. yes, you know 2% to 3% real growth very positive, but look at what's happening in injure oland, what is happening in japan. they have a quarterly recession. look at what's has in russia, in south america with argentina, venezuela and brazil. all of these areas, most of the world is basically closer to deflation than inflation. so, you know, that explain much of what you're talking about in terms of interest rates outside the united states. >> quickly, will argentina default? or do you think they'll get a deal done? >> that's an hour by hour type of thing. we have no idea. it's down to whether or not both

sides can come together in the next 12 hours. i have no opinion, but we watch with interest. if they do default, you know, that suggests that the global economy continues to have problems. if you haircut creditors, all creditors will have a sense of unease. >> bill gross, thank you once again for joining us today. bertha, what are you looking at? >> bank of america is moving higher, a federal judge has ordered the bank to pay nearly 1.3 billion for its penalties, into buys thousands of defective mortgages. the mortgages were sold by its countrywide unit that it took over. the stock is currently trading up 1.8%. it looks like folks are seeing this as maybe an end in sight to those troubles, mandy. >> thank you very much, bertha. are we safe on the roads out there? we're about to show you just one slice of a cnbc investigation into the alarming number of

fatal truck accidents here in the united states. later on twitter, shock the skeptics. are we missing one key thing? that's up after the break. stick around. the ca♪illac summer collection is here. ♪

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it is the scary road statistics you do not hear about. over the fast five years, it's been a dramatic increase in truck accident. eamon javers has more. >> there's been a horrendous collision. >> it left tracy morgan in critical condition. >> new edales emerging tonight into the investigation into that fiery bus crash. tragedies like the tracy morgan and feddics crashes grab the nation's attention. >> very, very large explosion. >> reporter: happening nearly 11 times aday across the united

states, causing nearly 4,000 fatalities according to the national highway traffic safety administration. there are any number of causes, from driver error, to fatigue, to ser mechanical problems. in fact federal regulators say 20% of trucks inspected on the road in 2013 had problems like faulty brakes, or bad tires and shouldn't be on the road at all. that's over 2 million vehicles. more than 170,000 drivers had enough violations to be pulled from behind the wheel. >> it's an 8 on,000-pound missile. when it hits somebody, it's catastrophic. >> dan ramsdale is the founder of interstate trucking lawyers of america. >> roughly 4,000 a year are killed in crashes with big trucks. it's the equivalent of a commuter jet with about 80 people, having one of those jets crash and serve dies every

friday of every week of every year. >> an ferro is the outgoing head of the federal motor carriers association, which is tasked with egg are lating interstate trucking. the industry says it delicated over $600 billion for carrying over 9 billion tons of freight. fat at crashes have gone up from 2009 to 2012. why are the fatal accidents going up instead of down? >> we see it as a combination of economic growth, health of our economy, intensified traffic on our roadways. >> any other industry, you would see regulators shutting the industry down. why isn't that happening in trucking? >> the changes of safety oversight, of regulation, of industry practices themselves has resulted in a decline of truck crashes from about 5,000 a decade ago to 4,000 today, but you're absolutely right. the increase from about 2009 to

the present has continued to tick forward and tick upwards. >> reporter: just who is to blame for the growing number of truck crashes is the subject of a fierce and ongoing debate between the trucking lobby and advocacy groups. dave osieki is the top lobbyist for the association. >> according to the are initiated by unfortunately somebody other than the truck driver, the car driver, the suv driver. we're responsible for about 30% of those crashes. >> what are people doing wrong when they're out on the roads driving with trucks. >> motorists who aggressively pass trucks, cut in front of trucks who tailgate and who linger on the sides of trucks. >> john lannen is the executive director of an advocacy group for victims' families and truck crash survivors. he thinks it's the big rigs more often to blame. >> unfortunately there's a cultural aspect that this industry has too high of a tolerance levels for deaths and

injuries, and we need to work on it. >> reporter: we learned a lot more about the different technology that's available. coming up on "closing bell", we'll talk about camille yoon carriers, trucking companies that reregister with the government to clear their dirty safety records, and the government accountability office say they are more likely to get into severe crashes, and for more coverage, you can go to investigations ivg.cnbc.com. some really shocking statistics. thank you. let's get to steve liesman with breaking news. >> some tough words coming from group of 7 leaders in a statement they put out the day after europe announced tougher sanctions on russia. they're saying russia still has the opportunity to choose the path of deescalation, but if does not do so, we remain ready to further intensify the costs of its adverse actions. russia withdraws pretty much included from the g-7 after having been brought in 17 years prior to that, and these are

tough words from the g-7. >> the screws are tightening even further. thank you very much, steve. this is what it looks like when $136 million goes completely down the drain. if that doesn't keep you interested, nothing might. we're back on the story, coming up.

welcome back. we had to nix street talk today, the doinggone federal reserve, but it will be back tomorrow. let's talk numbers today. whole foods, stock up more than 3% ahead of earnings after the bell, but one of the worst performing stocks in the s&p 500 year to date has wfm finally turned the corner? jonathan and erin joining us. jonathan, i'm going to begin with you. it's been a technical disaster, cleanup on aisle 5. are things looking better now? >> on the view it depends on your time frame.

if you're a short-term trader, we think there's money to be made on the long state what is important here is where it point support. that was resistance or where it topped out, so prior resistance becomes support, we they you could bike it here, but p it loses that 37 support, we want nothing to do with it. this is really what concerns you if you're a long-term investor, the stock has been below the 200-day, and the 200 day is lope downward. so for investors, we wouldn't suggest to buy it here. if you already long it, we look for an opportunity to sell. >> so maybe some short-term trading opportunities, longer term, not so much. do the fundamentals back that up, erin? >> i would say both short term and long term, i'm not so favorable on this stock. this stock has disappointed on earnings estimates for the past

two quarters, and it's disappointed on revenue estimates for the past six quarters. so i actually think that some of the wall street annual ises should take off the rose-colored glasses. they seem to think this will be a turnaround stock toward the second half of this year, next year, but we really don't see the proof. they have implemented in lower price strategies, also tried to expand on some of the their square footage, but the problem is there's massively increased competition within the organic food space. even walmart is now a major player within the space. so even though it's trading at some of its five-year lows for p.e. forward multiples, about 20 times forward earnings, i think the stock could go lower, so not a fan of whole foods. erin and jonathan, thank you for joining us. be sure to check out the online edition in partnership with yahoo finance. brian? >> we had a fight over twitter

today, so check it out. >> yeah. we have new information about obama care. just how hard was obama's top adviser willing to work with the insurance companies? >> plus the bizarre and massive case of flooding at a major california college, and the wealthy neighborhood around it. but first, talking about twitter, brian, you've a twitter doubter, not necessarily an outright critic or hater, but a doubter, so is the company's latest earnings report enough to make had him change his mind in we will find out. tdd#: 1-800-345-2550 there are trading opportunities tdd#: 1-800-345-2550 just waiting to be found. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 bring what inspires you tdd#: 1-800-345-2550 out there... in here. tdd#: 1-800-345-2550 out there, tdd#: 1-800-345-2550 there are stocks on the move. tdd#: 1-800-345-2550 in here, streetsmart edge has tdd#: 1-800-345-2550 chart pattern recognition tdd#: 1-800-345-2550 which shows you which ones are bullish or bearish. tdd#: 1-800-345-2550 now, earn 300 commission-free online trades.

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think about the things that wheat goes into and think about how much those products should cost now. wheat costs are down 30% since may, and news that the european sanctions against russia will not include agriculture, putting pressures on prices as of late. orange juice futures extending their loss toss five-month lows. twitter posting -- and the

stock is absolutely soaring today. some suggested the world cup plays into that. >> fantastically it's been the case that product changes have driven new user growth so it was the course of the quarter product changes that we've made and that we've talked about that have driven the growth. >> editor of herb greenberg's reality check, frequent twitter user as well, joining us now. your take on the quarter? >> from the perspective of what dick costolo said on the call, what i found interesting was the worldwide information network. that's the -- more importantly, they talked about the passive users. i've been out here saying the

one problem with twitter is they're not going after the people who are just lurkers. they're going after the people who are actually tweeters, so i think they start recognizing that broader world out there, how that translates into earnings, totally different issue, but i still think that's an important first step. >> well, it did -- >> i'm not making a call on twitter. that's not what i do. >> i know. neither do i. i get it. >> my point was, listen, we'll see what happening with the quarter, the world cup, almost all the growth was international. the world cup played out from one fourth to one fifth, it was a major event. we'll see. here's my only point and you're the stock guys herb. at 174 times forward earnings, which is where it's trading right now, growth better come. >> growth better come. of course, i was -- the way you

get run over in the stock market is when you go against the names that seems to make no sense. there's a real business underneath this, we think. look at what i said for year on netflix and looked like an absolute buffoon. i don't even want to go through. i open the door, on the buffoon, not the net flex. but if the stream wants them to grow into it, they will. this is just one quarter, and this is just a point in time. when you talk about the world cup, brian, remember costolo was talking about engagements, now new users. >> and certainly the world cup is a good event in the world, and yes, it may have contributed to twitter's results, but i want to throw this out there, because it's something our dear producer kevin brought up this morning, his two cents' worth, that bad events are good for twitter. i.e. world peace is bad for twitter. think of the things that have been going on, gaza, ukraine,

russia, plane crashes, you name it, people are tweeting about t when things are peaceful and happy -- >> when will that be? can we go there now? >> that's a good point. volatility and tension is generally good for media. i do thing one thing twitter needs to do is continue to drum home that it is a form of media in the sense that they don't still tell people you can use it as a personal news feed. i think that's what they have to do. you're seeing that stuff there before you see it almost anywhere else. so, you know, that has to be something they capitalize on. i think they have the potential to do that. but advertising models, you know where they go. sometimes they're good. facebook does a better job of that right now. >> so it was a quarter to tweet about, herbie. always good to see you. >> just saying, 174 times forward earnings. i hope they make it. i'm not rooting against twitter. i use it. >> they need to justify. >> my favorite thing is people that may criticize twitter, on

twitter. that's the best. that's the best. facebook stinks, he posted to facebook. did president obama's number one adviser jump out of her way to protect the health insurance companies? we'll dig in. plus all the sanctions against russia don't seem to be getting putin's attention just yet. what might we do that could have a real impact? the next guest has a powerful suggestion. and a ren nation literally under water. we'll explain this dramatic video, coming up. if energy could come from anything?. or if power could go anywhere?

or if light could seek out the dark? what would happen if that happens? anything.

look as this amazing video. a wear main break in los angeles completely flooding the ucla campus. this is the pauley pavilion. you can see the -- this is serious business. the school recently completed a ren nation of pauley, and there's the drought aspect as well. we forget this is a still that's to

help control russia and putin?

>> we have natural gas. and in an op ed in the "washington post" on sunday, president poroshenko of ukraine asked us to help with their energy supplies so that he won't be blackmailed by russia. president poroshenko of the ukraine's asked for our help and we should give about $3.75 per million btus here. so, there's a big price differential. we could be exporting and that would cut into russia's revenues. it also means the price would go down, so they would get less money from the natural gas they sell. >> so, why don't they say yes? what's the holdup, when you also think about the economic benefits that could bring us here at home? >> exactly, yes. yes. well, there are some people who think it's our natural gas, we shouldn't give it away.

that wouldn't make prices rise here. but if we sold it overseas, it would mean we could put in place better infrastructure. better infrastructure would mean prices might actually stay the same or even go down. right now we're flaring or wasting 33% of the natural gas produced in north dakota. it's just being burned as though you leave a gas burner on. and if we develop the infrastructure, then we could be exporting it to europe, undercutting putin, who makes most of his money from sales of oil and natural gas. >> it was a good piece. i'm going to tweet it out. diana, thank you for joining us. >> thanks so much. now, a new report says health insurance companies lobbied for an obamacare bailout boost and new e-mails show that top obama administration adviser valerie jarrett was lightning quick to address their concerns. well, joining us from the manhattan institute, senior fell fellow. republicans are obviously seizing on this, saying you

know, this is a big bailout of the insurers, this is taxpayer money, et cetera, et cetera, but you say it's not really a bailout. it's maybe just a subsidy? >> it's more of a subsidy. it's not the insurers who have acted independently, it's the administration that changed the rules of the game on the fly when they changed the positions around grandfathering old plans and all the cancellations. they changed a bunch of the ways in which the exchanges operated, which meant insurers took a bath because they priced the plans based on the old rules, not the new rules. >> what does this mean? it's easy to get confused already. what can we take away from this? >> absolutely. so, one of the things that was really interesting in this report we got from the house oversight committee was chet burrow, ceo of carefirst, the bluecross insurer in d.c. and maryland, he said to valerie jarrett, if you don't give us this money, we'll raise premiums 20% next year above and beyond what we would have originally. so, that's what this is about. the administration is spending billions of taxpayer money worried about the political

blowback of insurers increasing premiums by 20% or more. >> so, where do we go from here? >> we'll see what happens with premium prices in 2015 and, basically, what will happen then is we're going to see over time in 2017 is when this program expires. the risk quarters expire in 2017 and then the real prices we're going to see for insurance products in 2017, when that happens, hopefully, we'll know what the real underlying costs. >> that was very smooth getting the phone out. it was like, what in the world is that? your phone on set. >> sorry, guys. >> it's all right. you were very slick. >> you were preceded by one of our other guests, jan, last week. you're not the first and won't be the last, put it that way. >> apologies. >> you know, it's been such a counterintuitive run for the insurance companies. from a stock perspective, but that's not why you're here. just in terms of, initially it was like, oh, we're going to be destroyed by obamacare! now it's they can't get enough. are the insurers going to win no matter how this ultimately plays

out? >> well, if you look at the stock prices of the big hmos over the last five years, they've done pretty well. now, when it comes to -- >> they've done great. >> they've done awesome. it's been 3 to 5x, 4 to 5 baggers, but in this part of the market where they're doing these plans on the obamacare exchanges, the margins will be tighter and lower than they have for traditional health insurance plans they give to big employers, but can they make money on it? yeah. will it be a drag on their overall margins? yeah, but they'll manage. >> i know you're not a stock analyst, but are you surprised -- >> i used to be. >> oh, then i can ask, have you been surprised how well they've done? >> not really. >> that would be what you're expecting? >> yeah. i was never one of these people that thought that the obamacare exchanges were going to be a complete collapse. the administration has worked very hard in close concert with the insurance industry to make sure that these insurance exchanges work, because if they didn't, then the insurers would pull out and no one would get covered, and that would be far more of a disaster than what actually happened.

>> do you think valerie jarrett is maybe overstepping her role a little bit here? >> well, i'm sure she's isn't that correcting enacting what the president wants her to execute, but it's not necessarily legal for them to spend all these billions of dollars of taxpayer money on the insurers. congress hasn't given them the authority to do that. >> avik roy, it was a pleasure to have you on. thank you very much. we'll see you next time, phoneless next time. >> absolutely. sorry about that. all right, so we're about to give you something very special. it is a special preview of a very special movie, "sharknado 2." it's coming up. collection is here.mer ♪ ♪ 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.

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♪ apologies to all the radio listeners out there. we have been showing our viewers a clip from "sharknado 2: the second one," airing tonight on sci-fi. looking forward to it. but if you look really, really, really closely, we see a cameo by someone very special. did you miss it? let's take another look. don't blink. ah, there it is! still can't see it? here's the still image for you, and you will see none other than, yes, our very own ryan sullivan, terrified, running out of citi field to escape the sharknado. other stars of the movie grabbed

bats to defend themselves, but ryan ran. you're a coward officially on tv. >> i'm a 64 former rugby player, total coward. when the sharks fall from the sky, i'm not the guy you want to lead out of trouble. i'm the gun that's going to trample you if you don't run faster than me. i ran in fear. it was terrifying. there were sharks coming -- >> could you focus on where you looked? >> it was all method acting. i studied brando for a couple years and i just thought, okay, he had stella up there on the balcony -- >> shark! >> yeah, and i had a giant shark. and i just really became fear and i fled like a little kid. i mean, i was screaming. >> so, for a whole week ahead of that particular shoot, would you, like, in your role and you were just walking around with a terrified look on your face? >> i ran home. yeah, every time bad economic data, ah! i mean, i just practiced over and over again to run in terror. i'm just a complete coward. i admit it. >> so, we want to know whether

or not you get devoured by a man-eating shark let loose in new york city by a freak storm, but we're not going to give you the answer. watch it to find out. is the on syfy at 9:00 p.m. eastern. i can't wait! loved "sharknado 1." >> it's a good one. take care. and welcome to the "closing bell," everybody. i'm kelly evans here at the new york stock exchange. >> and i'm bill griffeth. as anticipated, a very busy, newsy day, a lot for the market to digest. first thing this morning a much stronger-than-expected growth number for the second quarter, 4%, very big, and that sent the stock market higher, but we went lower after some troubling news out of russia came our way. >> and interestingly enough, we've also been whip-sawed by the federal reserve's meeting. itsat