continue today go up, up, up. the name has done fan as the cli well. so giliet sciences is my stock of the week. i took a picture of kelly evans onset. >> we got to focus. >> make kelly smile. there you go. >> okay. smile, kelly, smile. closing bell is coming up with kelly smiling next. >> thank you so much. welcome to closing bell i am kelly evans down here at the new york stock exchange on friday. >> and i am tyler mathison in for bill griffith. looked to be a strong finish to the week for the equity markets. through late morning when ukraine claimed it had destroyed a part of a russian convoy that crossed the border. that news sent stocks south in a hurry. a built different now?

yeah. dow still negative by 55 points. it was a sleepy summer session until the headlines began to cross. look for confirmation of exactly what happened. as we head into the final hour of trade with the dow off 55 points this hour, take a look at the nasdaq as well trading higher to the tune of seven points. the s&p 500, roughly unchanged, off by just under two points. >> joining our closing bell exchange, gerard fitzpatrick from russell investments. ken, chris from jk investment group and rick from cnbc along with michelle who has been leading our coverage on the situation at the ukraine/russia border today. michelle, any sort of subsequent headlines after these early claims today by the ukrainians they had tracked and destroyed

russian military vehicles moving into their territory? >> yeah. for sure. russia is denying they had any vehicles there. after 10:00 big dive in the markets. this gentleman came out, he's a military spokesman and he said what you're talking about, they had destroyed a russian military column deep within ukraine. this is when the market sold off because this would be a significant escalation. the ukrainian military facing off against the russian military. deep within ukrainian territory. that's why we saw a run to treasuries as well. now the russians deny thchlt they claim they have no vehicles there and they say ukrainians are trying to stop their humanitarian aid mission of 200 trucks that you see here. filled with food, medicine, sleeping bags, et cetera. western journalists were

traveling with this humanitarian aid and tweeted out exactly 24 hours ago that while they were there, they saw a column of russian armored vehicles crossing into ukraine. this in particular really hurt the german stock market and the tenure yield fell below 1% on this news and hovers there right now. the concern is will there be more sanctions and/or will mu russia respond militarily. another piece of news, they say we know they have been supplying the separatists for a long time. this happened in daylight and within sight of the international press, suggesting they wanted to be seen, most likely to test the reaction of the international community. the russian separatists control several border crossings with no

media presence. they could have been used by military vehicles instead. that's to make you wonder whether or not this was all by design. >> and you always have to -- it seems when it comes to putin what's happening at that border. what is happening in the rate space. let me ask ken at the exchange, do you think stocks can continue to trade higher until there's a resolution here? >> it's pretty choppy for a while. this is alarming what we hear from russia. we kept hearing this is the teflon market that nothing sticks to it. it's been sticking for the last couple weeks. it dusts itself off and keeps going again. despite the negative international headlines our markets are looking good because of our decent foundation. >> let's me add color on that

point, bank of america pointing out when it comes to earning season, it's not just the large cap that is have been doing well in the earnings and revenue side, by the way, small and mid caps have been doing extremely well. earnings for small up 16%. fifth straight quarter their earnings have top caps. and those growth names within the small cap space up 19% for earnings and 13% for sales year on year. >> let me turn to you and get your thoughts on bonds. the bond yield on the tenure about 2.3% and now at 2.347%. jeff earlier today, respected bond voice, said if we close below 2.345% the tenure can go to 2.2%.

what's driving it? >> i think the issue is about coincidence today. gio political risk is huge. at the same time the economy, mixed results. we saw the results out this morning. disappointing. from a valuation side, u.s. treasury is not that expensive on a relative basis. like those german bonds at 1%. quite a demand at the same time. yes, i would agree from a technical side that happened at the same time where there was 240. that all really is a convergence to be bullish particularly in the short term. >> are we -- i mean is the silver lining that everybody is going to get a less expensive mortgage? >> i don't think if we two down to 2% which i think is a 50% probability and i said that for 2014, i don't think it's going

to have a huge impact on the refi market. and i don't think it's going to make a huge difference on home sales. i like what jeff said about relative value. but to me, it isn't a question of whether to close above or below 232. to me, we have passed the big milestone. the close for the year was 244. once we violated that we never closed above it. until then, the chances of seeing above 2 1/4 is probably a 50% chance. listen, you know, what we're not talking about, let's say there was not gee you political headline. we had eight months in a row where it was above 80. not this time. we had a drop on treasury

international capital flows. the biggest since the series was created in the '70s. you add in all the negative issues out of europe. plenty of fundamentals that will continue to drive this movement by the way, this isn't based on -- right now it's based on yesterday's close, total return year to date. 18.1%, those numbers will be going up. >> who would have thought bonds would be outperforming stocks. not many people. to your point, the idea about the relative value with the german bond below 1% with the dollar strengthening against a lot of the european currency. some of the money coming out of european issues into the u.s., let me turn to chris and ask you about what you see in the technicals of the equity market right now? >> tyler, let me go back to what ken said in calling this a

franken stein market. this market is hard to love. it's easy to hate. when you look at the technicals, technicals are the only thing attractive about this market. the s&p 500 is well into bull marketer toir trading well above its average. if you want to call something out, it's the length of this rally. is it magical? no. but it happens. when you look at the sentiment though as ken was pointing out, this market can't seem to do anything wrong when you look at the vicks, it pulled back 30% over the last week despite all the things rick pointed out that should have investors concerned. it tells us there's optimism out there in the market that really isn't warranted. a lot of people like to say this market is climbing a wall of worry. we don't see those signs. targets have been going up. there are sign that is everybody loves stocks right now and as

you know history that is not the right time to be buying. right now we're kind of a little bit neutral when you look at our intermediate outlook. long term, bullish tendencies but we need to see that pullback. >> and quick question to both of you before we go. ken and chris, do you think the s&p goes to 1930 before it goes to 1970 or vice versa? >> a lot of traders were watching that. we probably kind of have to backfill. >> i think when everybody returns after vacation, season is over, we're going to see that decline. i think that resistance around 1955, 1960 is going to hold here. >> thank you. appreciate your perspectives. have a great weekend and we'll see what happens internationally over that weekend. as mentioned, we got 50 meets to go. the dow is off 56 points.

s&p negative by two. nasdaq holding on to a positive of 5. the latest on the conflict between ukraine and russia. >> and the question today, a sell off, buying opportunity. stock picks will name the names they say will make you money for the rest of the summer. >> a man who made a billion dollars making a big bet against the s&p 500 should you be worried? >> first it was green mountain. now coke taking a big stake in monster beverage but will diversifying a way from it's core soda strategy help energize coke's stock. we'll talk about that next. tting day begins with arthritis pain and two pills. afternoon arrives and feeling good, but her knee pain returns... that's two more pills. the evening's event brings laughter, joy, and more pain... when jamie says... what's that like six pills today?

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was indicted on new criminal charges on an online pharmacy case, conspiracy to launder money. pharma gaining ground after promising result from a clinical trial of its experimental hepatitis c drug. a tough day for dillard's. the issue margins there. and monster leading the s&p 500 after coke announcing a 16.7% stake, worth about $2.15 million. >> the stock higher usually means the street loves it. >> or should coke take the stakes like the one they did yesterday in monster? joining us bill and robert.

gentlemen, welcome to both of you. bill, let me start with you. how smart is this deal? can it help turn coke and its stock price around? >> i mean, i think it's a first step. well i guess the second step would be what they did with green mountain. it helps their u.s. base and gives them further distribution and validates that the energy market is hot and here to stay. that's what millennials are drinking and have a strong partnership to tap into that market. >> raising the prospect of coke doing a big acquisition but he said maybe they should buy craft or imitate pepsi. pepsi has a lot of healthy products like hummas. do you think coke should as well? >> i think theat's a key point.

consumers have a choice today in beverages. there's over 4,000 choices in beverages for them to consume today. so they have to branch out. i think the reason that pepsi is doing so well, that stock is killing a stock like coke here today is because of that snack business and there's names out there that they should consider. their business is stalled and they need that top line growth. >> would it be smarter for them to move away from liquids and more into solids. >> i don't think that's what management is focused on. they're focused on now the core coke business. you can get distracted. they're trying to clean up their portfolio and move energy drinks to monster and let them run that. it's such a big business.

you could buy white wave, 15 other companies like that, it's not going to move the needle. >> it would move the needle for kraft for sure. >> but kraft is not seeing opportunity as well. starting small like this there are probably more to come. >> i want to raise the point robert made, he says -- again, just to quote you when you pop open a coke these days, people look at you as though you lit a cigarette in a nursery. is the image problem they have with people knowing how unhealthy energy drinks could be, how the perception of its core business may be? >> people look at you if you're drinking a coke like haven't you got the memo that stuff is bad for you.

i look on the west coast, we're health conscious people out here. look at the top restaurants everyone is going to, they don't have coke or pepsi products on there. it's teas, natural juices. if there's sodas it's sodas they're making in-house. people are become more engineer dated. when 70% of your revenue is still coming from soda, i don't care if it's a small acquisition, you got to start somewhere and make it shift. >> does monster square with your thought? >> it does like the other guest mentioned, gets you into the million y'all play. there's some controversy around that. >> if you're saying people are going for healthier stuff, monster on the face of it doesn't seem particularly healthy to me. i don't know. >> i agree and that could be a ticking time bomb waiting to happen. >> bill, aren't they going after the healthy drinks portfolio of monster and leaving the flag

ship monster beverage alone granted they're going to have a stake in the whole company? >> they're getting -- it's a very small business. i mean, i understand the health worries and health concerns but i think that's the point of why coke is investing in it now versus two years ago. monster has seen every negative headline possible, every piece of litigation possible over the past two years. somehow the millennials didn't get the memo. the energy category is up and been up double digits for the past decade. >> did you ever drink a monster? have any of us drunk a monster? >> no. >> i think there are some guys here who drink the energy drinks. do you drink monster? >> red bull. >> red bull. >> i never had one. my 21-year-old does drink them by the way. sometimes he mixes them.

>> i don't know about with vodka but that may be another story. >> i was going to say sometimes he mixes them. >> thanks very much, guys. all right. we have got about 39 minutes before the closing bell. the dow down about 1/3 a percent and nasdaq also flattish up four points. >> we're digesting headlines between russia and the ukraine. >> and what's putin's next move now that ukraine claims it destroyed a russian convoy and the will the u.s. and its allies respond if putin ramps up the violence? watching very closely later on the closing bell. with fidelity's new active trader pro investing platform,

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. >> the dow industrial is down 68 points, about 1/2%. don't look now. the summer is winding down. which stocks should you put on your shopping list for the end of the season even with the global uncertainty between ukraine and russia? >> it sure feels like it. today with their picks, brian and david. welcome to you both. brian, let's just begin with

you. what does well raregardless or e tensions? >> when i'm looking at stocks in this type of environment, i think you do have to look for the hidden opportunities and hidden technology is one of my favorite themes. that involves investing in some of the companies going to benefit from the buildout of better infrastructure in the united states or google and amazon. >> david, give me summer loven. >> despite the geopolitical risks, we see technology in a leadership position. granted we have seen weakness in terms of mid and small cap names. we're going into september when the stock market typically has been weak. in this environment, we're tending to look and we'll go with names that have good

product sicycles behind them. microsoft we think continues to make improvements as they reduce their costs and we also think intel has good prospects of having high margins. certainly indicating the semi-conduct to sector intel is showing leadership. >> take us through a couple of the themes. >> with petro prices it's hard to believe when you see oil up, but oil prices have moved down recently. after we get through a lot of the uncertainty about things in the middle east that we could see oil prices continuing to decline. as a result, who is going to be one of the big ben fish yars of it, remember the graduate? the key theme was plastics. if you're looking at the specialty chemicals, they can benefit because their input

costs are going down and this should also lower petro prices, should stir economic active i. >> how excited are you about the prospect of apple's larger screen phone and isn't it likely some of it is already in the price of the stock? >> i would say yes. people have been buying up the name ahead of the expected introduction. i think the date is going to been for september 9th for the announcement. the fact remains that other competitors such as samsung have come out with 5 1/2 and 6 inch smartphones, apple has lagged and we think as a result, there's probably greater pent up demand in terms of an upgrade going for the iphone 6 than there had been for the iphone 5 that we seen before this. we think there is potentially a significant tail wind behind apple stock. not just going into the

introduction but going into the year end holiday shopping season. >> brian, one of your picks relates to this. hidden tech. in other words, companies building the back bone of infrastructu infrastructure. >> correct. what they do is create a left tackle of the antennas and broad band connectors and the such. they're under the radar in terms of just the public's knowledge of them but huge in the space. if you look at the size of the company, they're $15 billion market cap. decent size. if you look at analyst's expectations, those are the types of things i like to look for here. these are companies that can generate significant profits in a rough environment. >> september and november are tough months. how worried are you? >> apart from the normal

seasonal factors i think there are offerings coming in the tech center. i think alibaba is going to put some pressure on names. i would say say amazon, ebay. would probably be names we would not chase in this current environment because investors looking at the size of a deal such as an alibaba are going to be taking money out of the traditional name so they can put it to work in alibi babb. >> last work. >> i think the seasonality is behind us. christmas comes earlier every year and the market volatility is coming earlier. and i think they could be positive months for the market overall. >> thank you. as we look for some ports in the storm, tyler, today that storm has a dow up 66 points and about half hour to go. the nasdaq still slightly positive. >> and violence erupting between ukrainian and russian troops just a day after putin toned

down his talk. is this the excuse putin needs for a full-blown invasion and what would the market reaction be in that scenario? we'll talk about that next. >> stocks are on track for a gain this week. jeff cox discovering retail investors headed for the hills in droves. coming up, jeff makes the case they're always reading the market wrong. ght time. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours.

welcome back. it's been a week where we have had some big individual movers but the averages when all said and done turn out a slight positive despite is headlines about the russia and ukraine. the nasdaq positive and s&p sitting around 1952. a day after russian president said he would do nefeverything his power to stop bloodshed. what's the next move? >> former u.s. navy admiral and congressman joe sestack. what do you think putin's next

move may be? these are reports out of the ukraine that ukraine fired on and apparently destroyed a russian column of personnel carriers and the like on ukrainian territory. if russian troops were killed here, doesn't putin have to do something? >> he doesn't have to do something. these personnel carriers that were in a convoy was breaking the territory integrity of ukraine. they had no choice. it was breaking the territory border and second, ukraine has gotten a big of its act together and they are having a successful advance against the rebels in the eastern part of the country. what will putin do. i think he's got to make, because he's a macho guy, make some sort of a belligerent move. i think what we're waiting for to see if he's going to pull those 20,000 military troops away from the border, otherwise his words that he said are

meaningless. i think the next 24 hours is going to be important. >> admiral, there were some reports on russian news wires in light of all of this where they said, you know, that this was part of ukraine's information provocation seeking to aggravate conflict and then i saw that russia is concerned over u.s. military activity near the border. this rhetoric reveals what to you? >> this is just rhetoric and everybody know that is. i think the united states has to above all else remain firm. with president obama going to make sure those nato countries that used to be in the soviet union, that we are going to protect you, because you're part of nato is critical. second, i think the united states has to take some quiet other steps with nato. there's a pretty ad hoc command center in poland. we have danish personnel there.

nate toe should build up to more of a settled command center. doesn't mean we move troops over but begins to show we have gone previous far here. economic sanctions. we all know russia is nothing but a gas station. their gas station is about to run out of gus. the western siberiaen fields are empty in the next ten years. they need our technology. pretty tough to get to. i think we have to seriously try to have a change in the energy scenario out there where we in western europe have a lot more independence. >> nato, a ramping up, a tighting if putin moves more

aggressively. if putin moves in with some force, is there anything the west could do beyond that? >> we are not going to be putting troops into the ground in ukraine. you remember, tyler, in the old days, i'm sure you weren't born then in '58. >> oh, yes i was. >> okay. when they went into hungary, we didn't put troops in the ground even though the military of nato was so immense at that time. this is the near abroad for hush sh -- russia. we aren't going to get in there with our troops on the ground. the cost is not worth the benefits. we have seen the prices are going up where putin is not importing fish or poultry from us. and notice the speech you

brought up, he did not put that in all the public stations throughout russia which means they're already beginning to have concern if the public isn't having good food coming in, and prices are going up that maybe these sanctions are going to occur. >> admiral, that's why i wonder strategically if the better option would be to let russia collapse on itself as opposed to doing other moves and turn to u.s. and say you're the ones escalating this conflict? >> kelly, if i can take what you said, i agree to a large extent. we however, have to make sure that nato understands we are there. second, we have to recognize that those former soviet republics that aren't in nato are already giving us access to nato forces to exercise with

them. the real key here is for us to know with our natural gas with israel and western europe and ukraine having discovered natural gas that our ability over the time that russia understands we don't need you anymore if you don't abide by the rules of the road. your gas has about ten more years to be provided to us and after that, we're on our own. that's the real key. >> are you working with the gas industry here? >> no. i want to make sure fracking is done well with proper oversight. all that said, you had earlier in your conversation something about chemical companies starting to come back to america because of the wet natural gas. no. i have had -- i think if you look around the world from china and the south china sea which has established new fishing rights in international waters that the real national security interest for us is not about military as the front of the

table but our economic power. that's how we can resolve much of this. no, i would be saying this if it was water supply. it's the new tool in the tool chest. i'm -- >> yeah. i mean look at -- it's an important industry. absolutely. >> yeah. >> thank you. really appreciate it. tyler, with 20 minutes to go here. i'm not doing much to level tate the index the dow is still off 60. and we have billionaire, a big winner from today's selloff. what does that mean? should you be worried about that call? he did help take down the british pound in the early '90s. >> is this what the iphone 6 will look like emerging on the website? are they real. later on the closing bell. rd wat new car smell and the freedom of the open road?

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we, the dow industrials are down about 55 points. 1/3 of a percent. the s&p 500 is basically splitting the difference roughly flat.

>> our courtney reagan is at the new york stock exchange. what's the mood? >> you know, kelly, in the beginning of the day it was anxious, you could see that clearly. you see stocks begin to sell off as traders are watching every headline. after a while, some traders begin to think maybe it's not so bad. maybe i'll pair back into the close. but i'm not going short. things got lighter about mood. some aren't sure that equities have been the class getting it right. all eyes remain fixed on that tenure. we saw it fall before it began to pull back. one trader says unless we begin to see casualties, it won't be anxiety. a lot of decisions still need to be made going into the close. when that bell sounds, traders hands are tied for the next two days. they have to decide where do

they want to be positioned going into the weekend. >> thank you very much. let's head over to nasdaq. >> sema, what about there? why is the nasdaq still green today when the others are in the red? >> the only index in the green right now as the investors are trying to assess and digest the headlines out of the ukraine. before we get to the winters, one sector we are showing weakness is chinese internet. webo often referred to as the twitter of china reported a jump in revenue but a slow down in user growth. and jd.com described as the amazon of china its net loss widened. that's one area traders are focusing in on. the big winner is mon store. microsoft, apple, all seeing

notable gains. despite geopolitical tensions the nasdaq on track to post a gain for the week kelly and tyler. >> that's a point. thank you very much. we have got 15 minutes to go, tyler. it looks like the blue chip is still off 57 despite the trent there in the bigger cap tech names. the s&p off only about 1 1/2 points. >> are the investors overreacting or making a big mistake? later on the closing bell. she's still the one for you. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently.

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well, the dow has stabilized, kelly, about 57 points lower and so does the s&p and the nasdaq a small gain. joining us now is michael and peter from umpire executions. welcome. michael, as we put this week into the rear-view mirror, what will you be watching next week? >> i think michael's mike is not work. peter, did you hear my question?

>> i heard your question. i was going to repeat what michael was saying about the conference next friday. a bunch of small data points we're going to be watching but a lot of eyes will geopolitical issues which to me, you know, you can have one on monday and tuesday, it's completely forgotten. you know what, i think it's catalyst to move the markets in small increments but i think long term it's still about earnings and still about growth in the economy. >> you know, we have at least gotten some volatility back in this market. not much volume, though. i think as we have had some of the slowest days of the year this week, does that mean people should be especially concerned about big moves in either direction here and single names in the broader indexes? >> i think what happens with that, kelly, is when you have these big moves, people read more into it than there actually is. so -- >> those media folk? >> maybe not media folks, but i think most people will look at it and say it was 150, 200 point move on the downside or upside

or whatever, then they look at the volume and it doesn't really coincide. if you had huge volume, big move, then that's something -- >> although we did have big volume. michael black, i don't know if you can hear us now, if we can hear you, we did have big volume in the ten year today. jim vogel was pointing out we had more volume in the ten year after the russia and ukraine headlines hit than when the mh-17 plane was down. >> never mind the stock move, look at the bonds. with all the fed stuff happening next week, with the minutes and jackson hole, i think the short end of the curve is elevated here in terms of yield. i think it will come in and rally. my favorite macro trade, buy the short end of that curve. i love it. it will create more confidence in stocks, too. if that makes any sense over there. i really think that's what's exciting here. >> peter, you know, right around 10:30 or whenever the headlines hit on ukraine, who was doing all that selling? was it the calm, cool, professionals or the wild

trading frantic retail investors and what were they selling? >> whenever you have any sort of negative news, i think a lot of programs get executed. so what ends up happening is the market moves with those programs. i don't think there were that many smart people selling and i think a lot of people already have their positions for the weekend, either the long, short or completely flat. i don't think you are going to see any of that major sell-off on the close. i think it's just going to be rebalancing of everything that was going on during the day. to me, i think most of the professionals pretty much stepped out of this market for that. >> i told everyone today, look at the clock, guys. look at the clock. it's almost a european close. when ukraine news came out, that's what happened. the europeans were getting themselves out of the way for the weekend. look at the clock, hey, almost 11:30 new york time, they will get out of the way. they want to go home and feel safe. that's a lot of it. >> the point was made earlier this morning, the eastern european markets didn't come under as much pressure as you

might have thought, given that every other part of the assets complex was selling off on news that would affect them most directly. >> that's the ironic things, it's always who owns what. if guys were positive on u.s. stocks and western european stocks going in, that what's they thought they needed to get out of so that's where the selling was. you see the bond buying. that's what they were doing. everyone is out of the way or out of the water on some of these markets. that's where the action is. follow the money. >> exactly. yeah, exactly. >> last two weeks of august are typically about as sort of quiet as it gets. we shouldn't expect anything different this time, right? >> no. unless there's some sort of major, talking about a major geopolitical event, i don't think you are going to see anything, any direction. the market's going to probably just stay in a very narrow trading band until i would say probably early september. if you want to go away on vacation for two weeks, this is a good time to do it. >> the s&p has just turned

positive, albeit only by a point. gentlemen, i will leave you there. tyler? >> thanks very much. we'll be back with our closing countdown in just a minute. >> after the bell, just how worried should the u.s. and its allies be about vladimir putin's incursion into ukraine? full coverage coming up. ♪ when the world moves, futures move first. learn futures from experienced pros with dedicated chats and daily live webinars. and trade with paper money to test-drive the market. all on thinkorswim from td ameritrade. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses,

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on a very interesting day, the industrials on light volume down about 41 points after really plunging on those headlines out of the ukraine. the s&p 500 has turned positive by about half a point but it's positive nonetheless. the nasdaq is higher by about 12 points or a quarter percent as it has been for most of the past hour. closing countdown time. back with us from the floor, michael block and peter costa. michael, i began by asking you before your mic was turned on or you had it on about what you expect or will be watching next week. i know you were going to talk about jackson hole and janet yellen's remarks. what do you expect the tone of her remarks will be? >> i look back to four years ago and ben bernanke really burnished his dovish credentials at 2010. i'm looking for janet yellen to do the same thing. i know the unemployment rate's getting better but she keeps

talking about slack in the labor markets. we can debate that until the cows come home. she will really let people know they will remain accommodative at the fed. the other thing i want to point out, this market is very resilient. it feels like frogs and locusts were falling from the sky this morning. i want to point out we will above the 50 and 100 day moving averages. three times this year we dipped below. for the third time we're back. i think janet will seal the deal by the end of next week and it continues. >> peter, how concerned are you about the fact that so much money's going out of -- a fair amount of money is going out of equities into bonds as we move into what is traditionally a tough month, september? >> well, it's setting up for a much tougher month. now, michael is a little more positive than i am about the coming next couple of months. i'm actually bearish. i said this several times on the air, that i am definitely seeing -- am expecting a

correction, not a major one, but i do see some pull-back. i think that a lot of money coming out, it's going to take off the support level on the market and the market will drift a little bit lower, and it will stay there for a little bit. then as earnings season rolls around the end of the third quarter, you will start seeing money come back into it. >> you don't think that the decline off the highs over the past month of 4%, 5%, that wasn't the correction, 5% is not the new 10% correction? >> well, a lot of people have been saying that but i think there is still probably a little bit more, not a lot, but i do think a little bit more on the downside. nothing where anybody should really get worried about it. but i have taken my own personal investments, i have taken some money off the table because i do think the market is coming back a little bit. >> go ahead. >> to peter's point, i liked him a lot more last thursday night at 1890 than i do right here. point taken, we can definitely pull back and turn around a lot even if the grind is ultimately higher. >> thank you both very much. looks like the dow is going to finish the day down about 50

points. the s&p 500, roughly flat and nasdaq higher by 11. that will do it for the first hour of "the closing bell." there is the closing bell. have a great weekend, everybody. kelly evans will take you forward from here. welcome to "the closing bell." i'm kelly evans. looks like the s&p 500 might have turned positive there on the close. here's how we are finishing a busy day on wall street, with the dow off about 50 points. the nasdaq up 11. the s&p 500 roughly unchanged, 1955 as the closing trades come in. joining us is michael santolo, natalie morris, kate kelly and joining us from the nasdaq is "fast money" trader brian kelly. welcome, one and all. it was a relatively sleepy summer session until those headlines hit about what was happening on the border with

russia and the ukraine. are you surprised the markets held up the way they did, or more surprised that they took it so tough on that news? >> you know, i think it's the latter. little bit surprised that we had that initial spasm lower, and honestly, in the last show, people were asking who is doing the selling. it was headline reading machines doing the selling as far as i'm concerned, and reacting to what the german bond was doing and therefore, our bond market was doing. to me, it was almost as kind of, you could ignore just the way -- i think you could ignore the rally based on the supposedly conciliatory words of putin. we had bounced back to where people thought we would from the lows this week and i think the market kind of held in there, because there's nothing too much to do right now. >> you know, i think the market's been taking a lot in stride, maybe too much so far, and the general feeling among those i talk to, and of course, that's typically the hedge fund groups so maybe it's different in other parts of the market, but is one of jitters, a feeling that we would kind of like to be long but we can't quite get comfortable with that. in addition, you have the lack of liquidity that comes with

august so it's hard to take any bold moves right now, if you don't feel like people are going to be there on the other side. but still, it's been surprising that oil, for example, hasn't seen a tick up until today. you would think that with ukraine and iraq, not to mention gold as you are saying, we would see a little more action in commodities. >> plus we have been on the edge of our seats with interest rates. now that things are starting to get more sketchy we know there's not far that we can correct if things do go south because of this sort of sketchy global positioning we're in right now. >> and brian kelly, my eyebrows went up when i read your note yesterday. you were likening europe to japan which is a comparison many people have made, but you were talking about the dax. do you really think it could turn out to have a correction like we saw with the nikkei? >> why not? yeah, absolutely. it's a very similar scenario. one, the dax is at all-time highs. you're looking at a central bank

that is behind the curve at the very least, may not actually have the authority to do qe, at least in japan they tried it, and so you have a situation where deflation sets in, germany, the biggest player, really isn't that excited about quantitative easing. it will take quite an economic shock to really get them on board. so why wouldn't it? look, it's a lost decade is what i'm saying. is it going to happen tomorrow, probably not, but i don't think you want to be long the dax for the next couple years. >> do you think the u.s. market can hold up in the wake of that? because for a little while there, they were pretty tightly correlated, although i guess ultimately, the u.s. has to look a little better by comparison. >> we have seen that dynamic right here. i do think ultimately if it goes truly into a dive, we can't just hold up here, but the u.s. is really increasingly looked like that haven as we all know, and not just because the growth looks better, you know, we obviously are still in a positive growth trajectory and because we have the most

aggressive central bank, but because financial conditions in the fed's terms have tightened since last we heard from anybody on the fed. so when bad stuff happens around the world, as natalie was suggesting, it sort of pushes off that moment of reckoning potentially for when we have to worry about a true tightening move here. >> here's the question. do we look good on an objective basis or is it more the best house in a bad neighborhood? you use the word haven which i think suggests the latter. >> does it matter? it doesn't matter, right? >> it matters with the dead super cycle and how much of the gdp is going to hang down the interest on our debt. we have to crawl ourselves out of this hole. >> wait a minute. >> stocks are still up. who cares? >> by some measures -- >> if stocks continue to go up and we have low rates, who cares whether we look better in comparison or we actually are better? if stocks are going to go up, doesn't matter. >> sure. >> on sentiment. right. >> if we're just talking about the stock market move, absolutely. but of course it does matter what the quality of our health is and what the trajectory of our longer term growth is.

that's really my point. yeah, if you're looking to ride a shorter term move it may not matter but i think everyone does care whether things are genuinely improving, we will see interest rates rising next year. >> also, just for the sake of kind of the belief in the fundamentals beneath this market to get people participating in it to some extent. if there's kind of this sense out there like you were saying that it's all artifice, there's nothing real and we are creating a longer term problem because the money has to go somewhere, and it's going to these places with people holding their nose as opposed to going to these places because there's belief that the cash flows in the future will justify the investment, then that kind of is two totally different outcomes for the way people talk about the market and ultimately where the cycle, how that cycle plays out. >> it seems time and time again, today also being a great example, the best idea anybody has is the u.s. treasury, you know? clearly people have been in stocks and i'm being a little facetious but really, it's hard to have much conviction right now and i know again, in the

hedge fund community, there's a feeling that underperformance has kind of ruled this year. people are afraid to stick out their necks, especially at a slow time of year, relatively speaking. >> i would point out, a month ago the concern was too much of a head of steam in the economy, wage inflation rekindling. it's starting to run too hot. obviously it's really, we can kind of be completely schizophrenic about exactly what to be afraid of today. leading indicators say it's okay relative to underdeveloped markets. >> but it does very much feel like all year we have been clenching for something that hasn't happened yet. that clenching leads to a sentiment of kind of treading water. >> and also, just to back out and talk about some of the areas of anxiety lately, high yield junk bonds, we saw a little bit of inflow last week after a big outflow several weeks prior. earnings have looked pretty good here. the point even about the labor market, i know that's going to be a huge focus next week with the jackson hole meeting, but

you can build a case that the fundamentals justify the performance here, but that's also got to remain the case i think for the confidence levels to match it. >> yeah, absolutely. it's interesting, we will talk at 5:00, citigroup did a great report last night into this morning on the high yield credit cycle and how that affects the stock market, and what their conclusion was, if there's four phases of it, we're in about phase three, where high yield tends to sell off, interest rates rise a bit, ceo confidence and investor confidence is still high, you still start to see those earnings per share numbers go up, you have the financial engineering still kicking in, but once you get to the end of that phase three, then you have both high yield falling and stocks falling and by their work, citigroup's work, that could be anywhere from four months to a year away. it was hard to pin down. but it's interesting. that's an area you have to watch because high yield and the bond market, corporate bonds, have been driving all of this, all of these gains in the u.s. stock market. >> one of the lines we have

heard a lot lately is that bull markets don't die of old age. in other words, there has to be some catalyst beyond the fact that it has been so long that we have now seen stocks rally. >> it is true generally, that doesn't happen but financial accidents do happen a little more often when the bull market has been rolling for awhile, and you do have a general pickup in volatility and therefore, more susceptibility when you have valuations high enough for bad things to happen. not necessarily a new bear market, but i do think you get to a point where it's just not as easy to be comfortable staying long and settling in for that trade. >> let me pose this question before we go. do you guys think we would have traded this way if there were no skirmish between russia and the ukraine for the last several weeks? like if you totally took that out of the equation, do you think we could have had a similar period here? >> i think maybe so, but there would have been some other catalyst. it feels like the market's been in a period of complacency and it needed something to crystallize some of the

geopolitical concerns or domestic concerns, for that matter. >> we see some kind of major correction every ten years, but historians and economists now say that could be happening every five years which is another reason that we all feel like maybe it's coming soon and we all know it's a matter of if, not when, when markets sort of restabilize. >> brian, you were saying? >> you were asking if the markets would have traded, i assume you're saying would they have traded off if we didn't have ukraine, and i think you probably can make a case that the european economy was weakening prior to situations in ukraine, so yes, that could have been the catalyst. i think we probably would have ended up in the same place. even with the bond market -- >> it was when, not if. >> i know. we will leave it there for now. stick around. brian kelly is coming up with the "fast money" crew at 5:00 p.m. they will also talk about their top safety plays in these uncertain times and tell you where you could get in now. don't miss that.

coming up here, betting against american markets. that's what some people think george soros is doing in the wake of yesterday's filings. what impact could that have on markets ahead. first, markets were headed for a positive summer day but reported ukraine attacks on a russian convoy turned everything upside down. a look at what these actions mean, next. we started zya with the thought that the kid on the back of the bus might have a song that he has in his head but he just can't get out. with the technology of cloud, we change all that. i can sing something into my device, up to the cloud it goes, back down it comes, sounding better. we break down the walls of creation and we give music creation for the masses. ♪ ♪ unlock the creativity in anyone. with the ibm cloud. the ibm cloud is the cloud for business.

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welcome back. markets rocked today by claims ukraine fired on a russian convoy that crossed the ukrainian border. john harwood has the latest on that story now. hi, john. >> you know, it's not surprising that the markets were rattled because if confirmed, this would be a potentially big escalation in this conflict. the report was from the ukrainian government that their artillery had destroyed a number of vehicles in a military convoy crossing the border from russia. what we have not had confirmed and in fact, russia has not confirmed it, was whether or not this was a russian convoy or this was a convoy of vehicles driven by pro-russian separatists. we know that russia has been fighting a proxy war in ukraine,

but it is not clear that this represents that next step up to outright conflict between ukraine and russia which would be much more dangerous for the international community. we have not had a comment from the white house on this as yet, but the white house is taking fire from republicans on capitol hill. senator marco rubio, may run for president in 2016, accused the administration of dithering and called for stronger action. >> all right, john harwood this hour, thank you. so this does set the stage for a tense weekend. we will likely have markets on edge through next week so for more on these developments, john brown joins us now from euro pacific capital. john, thanks for being here. we haven't really had confirmation yet as to exactly what happened. what's your best guess at this point? >> well, it really would be a guess, and i really have no idea at the moment whether it's as john just said or not. but i have seen always the aid convoy as a big p.r. exercise and as a diversion, because

basically, the russians don't need that convoy to get arms into eastern ukraine. they have already been doing it. so i think that was a p.r. exercise and a diversion from the real thing. we have seen ukrainians advance, the ukrainian government advance in the relatively very lightly populated countryside. they are now coming to two major cities and street fighting gobbles up soldiers and is really a big advantage to the defenders. also, of course, street fighting will incur enormous amounts of collateral damage which again, is a great p.r. thing for putin and then of course, you've got winter coming which will affect both sides but would favor those in the cities. so i think putin is very firm, i don't think there is even the beginning of the end of the crimean offensive and i think putin will take over the eastern part of the ukraine. >> that's exactly what i was going to ask.

i will bring in the panel now. you think that is most likely his intentions at least? because just again today, we have had the european commission reiterating that any breach, any intention, anything that looks like that will require a response by them, perhaps by nato, by the u.s., by the west generally. >> well, i think the ukraine situation is the child of the crimea. i think the american administration fails to see the connection, the similarity between cuba in the 1960s and the crimea today. cuba was of vital interest to america. president kennedy simply couldn't afford to lose even if it meant nuclear war. crimea was of vital interest to putin. he simply couldn't afford to lose. so all the bombastic talk was wasted and what's worse, it exposed a great split in nato between germany that does over $100 billion of trade with russia, and america, less than $40 billion, and a far larger percentage of the german gdp and

this showed weakness, and i think encouraged putin to go into the ukraine and of course, the crucial thing about the ukraine aside from all the talk, is where does the west actually stand and protect the other countries that have recently come under the yoke of the old soviet union, notably the baltics, poland, czechoslovakia. i suspect there are moves to make sure the protection of these countries is solid and not just talk like we have heard from the european union. >> john, just a question out of curiosity. how tough do you think western europe is prepared to be when it comes to sanctioning russia? we know there are concerns over commodity needs, especially during the wintertime when russia is going to be supplying or presumably would supply europe with natural gas for heat. how much of a counterveiling factor will that be as they decide how to handle this? >> it's very difficult. germany depends for almost 40%

of its oil and natural gas on the soviet union or russia, and also, of course, the world is facing recession. we've got japan after doing equivalent of four times the qe that america, with its economy stagnant, european union, italy going into recession, germany severely hit by these sanctions, and the sanctions are driving the recessionary forces even harder. european companies like siemens and volkswagen and shell, already warning of the impact these sanctions will have and i think worldwide recession is in danger and the european union has got to think, and the west in general has got to think really tough about what they should do. i believe it means you have to show the fortitude of nato, which was under its original membership very strong, but now it's expanded, it's sort of diluted the will of governments

and our governments in the united states and the nato countries has got to show much more will to confront russia if it dares to tread on nato land. >> the stakes high for that meeting, that nato meeting in september that looms. john browne, thank you. we will leave it there for now. from euro pacific capital with the latest on where things stand. let's send it over to bertha coombs with a quick market flash. >> news out from tesla, the electric car company is expanding its warranty on the model s drive unit to match that of the battery. that means it now has an eight year infinite mile warranty. tesla says the change will have a modest impact on earnings in the short term. the stock is trading off fractionally. it's trading up fractionally. but that's a big extension. >> now the developments in the ukraine will likely unnerve the retail investor. jeff cox saying geopolitical uncertainty has already

contributed to retail investors staying out of these markets. we will take a closer look at this behavior. derate to severe crohn's disease is tough, but i've managed. i got to be pretty good at managing my symptoms, except that managing my symptoms was all i was doing. when i finally told my doctor, he said my crohn's was not under control. he said humira is for adults like me who have tried other medications but still experience the symptoms of moderate to severe crohn's disease. and that in clinical studies, the majority of patients on humira saw significant symptom relief. and many achieved remission. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal infections and cancers, including lymphoma, have happened; as have blood, liver, and nervous system problems, serious allergic reactions, and new or worsening heart failure. before treatment, get tested for tb. tell your doctor if you've been to areas where certain

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welcome back. military action in the ukraine put a damper on what was shaping up to be one of the best weeks the market has seen this summer. let's check in with cortney. >> the three major averages closing with gains today. the nasdaq, the outperformer, yield on the ten-year slowly gaining ground in the first part

of the week before beginning to slide that midpoint wednesday, and really plunging quickly today on the reescalation of the ukraine russia conflict. except for energy, all major sectors actually positive for the week. health care, tech, consumer staples leading the way there. today, energy the best performer as crude oil prices tracked steadily higher throughout that trading session. what a rough week for retail, particularly the department stores. earnings and commentary from retail ceos not inspiring confidence in the sector. dillard's down 14%, look at that. sears down 7%. nordstrom and bonton down 6% and 5% respectively. if you look at specialty, even a little worse. kate spade got hit hard, down 18%. perry ellis down 11%. new york and company down substantially, fossil as well. lot of movers there and it may not be over yet. next week, many more to report, including a number of team names that have been especially hard hit so far this year as tastes begin to change.

>> tough week. thank you very much. markets broadly fell today due to the escalating conflict in eastern ukraine. many retailers have been having sell-offs of their own the past few months. more and more outflows from individual investors out of u.s. equity funds to the tune of $11.4 billion in july. why are we seeing this now? here with us to take a peek into the minds of the retail investor, michael farr and our very own jeff cox, writing about this for cnbc.com. welcome to you both. jeff, what are you seeing? >> yeah, you know, the market had been on a pretty nice run for about a year and a half as far as the mom and pop investors go, referred to as the retail investor. we had seen inflows into mutual funds for about 16 out of 17 months in that period. over the summer, though, we have seen a steady outflow from the market. actually about $25 billion, $26 billion over the last three months. in fact, it just looks like

investors basically sold in may and went away and it's kind of hard to blame them when you see all of the headlines, the geopolitical turmoil and of course, the uncertainty over where the fed's going. definitely a change in terms of participation as far as the market goes. >> so michael, what does it say to you? >> i think jeff's got it right. it's all of the headlines that are driving people crazy. the tough part about going to a three-ring circus is trying to figure out which ring you're supposed to pay attention to. between the ukraine and what's going on in israel and what's going on around the world, not to mention with the fed, there's a lot of news that's bombarding retail investors, individual investors, and they are voting with their wallets, saying i'm out, i'm going to take some off the table, we were up 32% last year, we are up another 6% or 7% this year, i'm taking chips off the table. problem is, individual investors typically get this wrong. as long as people are overly cautious, as long as investors are saying this is too risky for

me, probably markets will be okay because they really don't fall when everybody's expecting them to. >> that's for sure. bringing in the panel here for some thoughts. >> yeah, where is that money going? we just saw the report that they're not going to retailers, clearly. are they going to bonds with lower risk or any other funds with lower risk? >> that's actually interesting. treasuries are taking in a lot of money. they have been doing very well this year, even though we have still been waiting for that great rotation trade that hasn't really happened yet. >> look, jeff, here's the thing. the market did the rotating for investors. if you were involved at all, stocks outperformed bonds by so much that you actually ended up kind of getting rebalanced without having to move any money around necessarily. i'm also kind of curious as to why exactly it matters in terms of predictive direction. retail sat out the doubling of the market in '09 to 2012. >> absolutely right. it hasn't mattered. we went through that really long stretch where retail investors had sat out, they were building

cash. i think just the problem is that you would like to see mom and pop investors get into the market and it just seems as michael said that they always get this wrong and they are scared away from the headlines and the levels of fluctuations, the american association for individual investors weekly survey last week had its highest swing to bearishness in almost a year. this week, had its highest decline in bearishness in a year. retail investors are all over the place. >> last word before we go, speak directly to the public here, tell them what should we all be doing? >> you need to remember that you need a discipline and you need to be kind of grown-ups about your money. emotion is the foe of the long-term investor. one of the load mutual funds showed years ago that investors in load funds even though the funds returned a net less return, did better because they stuck with them. if you have a long term investment philosophy, focus on the long term, over longer

periods these things shake out. you will make more money and we will all be fine. and watch cnbc every day. it will help your portfolio grow. >> there you go. >> cheap. what should we say, flattery? we'll take it. >> take it, yes. >> thank you both. have a great weekend. we want to switch gears now. all week you have been watching people on this network across the country doing the ice bucket challenge to raise money for als. if you haven't donated, go to als.org and do so. already, after going viral, and having a broad array of participants, the organization has taken in more than $4 million this summer, more than tripling or quadrupling from what it took in this time last year. we raise this why? because jpmorgan chase just about 90 minutes ago pretty much shut down park avenue. there's the video of more than 2,000 employees showing up to participate and watch as mentioned, this at their headquarters on park avenue here in manhattan.

executives including gordon smith, gavin michael, pablo sanchez leading the crowd there. jamie dimon did show up to a rousing ovation, shook hands to thank employees. more than $150,000 going to team gleason for als research from jpmorgan. not the first time they have given to the former new orleans saints football player who, after his eight year nfl career, was diagnosed with als two years ago. so jpmorgan chase has now challenged madison square garden to do the ice bucket challenge and we will await that video if and when it comes. there you have it. iphone gossip is usually limited to tech websites or blogs by apple-files but today it went mainstream when tmz published pictures on its website allegedly of the upcoming iphone 6. the authenticity is under debate. that story is next. and it's that time again.

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welcome back. big tmz scoop today, not on a hollywood star but on a silicon valley future one. tmz says these are photos of the new iphone 6 which many believe will officially be unveiled next month. question is are they legit? here with more is josh lipton. what do you think? >> well, tmz is not just talking about lindsay lohan and madonna's daughter today. nope, the gossip site is also showing off alleged photos of apple's new iphone 6. tmz says it obtained pictures of a phone said to be smuggled out of a foxcon factory in china. apple declined to comment on the photos but that is not stopping the excitement surrounding the device. the expectation is that the new iphone will feature large displays of 4.7 and 5.5 inches. the larger screen, of course, could drive a lot of apple fans to upgrade their existing

phones, maybe even attract switchers from android. if the new phones do have larger screens, analysts think apple could charge consumers up to $100 more for the devices in order to protect its margins. just the expectation of a new phone is already having an impact on demand. apple's ceo tim cook has told me that some consumers are putting off purchasing iphones right now because they do expect a new device to hit the shelves soon. so is tmz right? is this what apple's new phones really look like? well, some are skeptical. one says these photos actually just show knockoffs designed to look like iphones. we will soon find out. re/code reports that apple will host a big media event on september 9th. back to you. >> josh, thank you. for more on the leaked photos, whether true or not, what can we actually expect from the iphone 6, let's bring in ben parr. first of all, do you think the

photos are legit? >> i personally don't. i will give you two reasons why. there are multiple ones. one is like others have done, they did an analysis of the actual os on it and there are some mistakes that it seems like the pretenders made. for example, naming the app e-mail instead of mail, because apple never calls their mailing app e-mail. another one being just that the calendar app's fonts are off because the calendar app is different from the other apps because it changes dynamically day to day. the other thing, the hardware, the glass doesn't go all the way to the edge which is something that apple always does. it's a really good knockoff but i believe it's a knockoff. >> it's like the highlights i used to read in the waiting room at the dentist's office, can you spot the difference between these two pictures. >> or who wore it better. yeah. but tmz does say this is not the correct version that's going to launch anyway. they sort of lend credibility -- >> how can they tell? >> but that's a copout. that's a copout.

>> it could be, or it could be they know geeks like you and me are going to look at it and be wait a minute, that little thing is off. i don't know. they're so condescending to the geeks. >> tmz? >> speaking of tmz, i for two years lived in l.a. and covered the film business. just the point where they were sort of on the rise and they were catching videos of paris hilton coming out of nightclubs and so on. they have some pretty great sources in the entertainment community. i mean, it's not unheard of, maybe, that they would have a link to this but they have an ex-foxcon worker putting these photos on the web. it stretches the imagination. >> so if this were up for sale, does tmz buy stuff that's up for sale and do other tech websites? in other words, if someone was shopping this around, could it have wound up at tmz because they were willing to pay for it? >> i'm not up to date on their business model but i think they pay for content. >> they do. >> the gadget blogs got burned by that big-time so i don't think the major gadget blogs would do this anymore. >> can i dial it back and say is

it going to be in five or ten years we look back and say can you believe how ridiculous we were that we were all obsessed with a photo, maybe a fake one of a phone? this is crazy. >> it will be the same thing ten years from now. it will be the iphone xz. >> it will be different kind of wearables, some kind of earring. >> you know there's a retail sales effect. remember when this first started to happen, i think it was the iphone 5, there was a big enough bump in the september retail sales report that was attributed to tech and related devices. >> it's the actual purchasing, not the preview hype prelude to it. honestly, it reminds me of people don't obsess over the cars spotted at the test track anymore like they used to. >> unless it's a google car. we do get excited about seeing google cars. >> would you call it a peek in apple share prices? >> no, i don't think so. i think as a product it has all kinds of legitimacy. it's actually the weird gossip flow around it that i find

remarkable. >> is it peek apple gossip blog, perhaps? >> it's been like that for years. apple is an expert at driving lots and lots of attention for its products without saying a word. we are the ones giving them so much attention and they are the masters at it. >> i have even heard conspiracy theorists say they drum this up by sending out decoys. maybe tmz has an iphone decoy. >> just to bring it back to the markets for a second, this was sort of a mixed day for apple, this last 24 hours. if you look at the 13-f filings that just came out, we saw combinations of purchases of apple. leon cooperman, a respected fundamentals stock picker, bought 1.3 million shares of apple. not his first time in the stock but first time recently building a new position. david einhorn took some of his apple stock off the table. i'm told he was probably just taking some profits because there was a nice move in this last quarter. but we have seen sort of activity on both sides. >> it used to be one of the most widely owned names in the hedge fund space. is that still the case? >> i don't know.

mike, you are shaking your head. are they off of that most popular stock list? they are certainly widely held, whether in the top 20, i'm not sure. they have gotten more expensive of late and there is concern about their future and whether they can keep the product stream. to the point of this conversation, quite as strong as it has been historically. ben, last word to you. do you think this is peak apple hype or not? >> it's not even close. i think we will see peak apple hype when you get to the i-watch or whatever they are calling the next wearable. then we will have a much better idea, can apple launch a new product line after the steve jobs era. that's what i think will be a defining moment in apple's history. >> i still remember when steve jobs announced the ipad and the quote we should have taken from the journal is there hasn't been this much excitement about a tablet since moses came down from the mountain. every time we think it can't get any worse, yet it does. ben, thank you. >> thank you. >> yesterday's 13-f filings, we

commonly call them whale watching, give us a look at which stocks wall street heavyweights were buying and selling over the last quarter. george soros taking a major stake against u.s. markets. should you be worried about his bearish bet? that's next. and get your buzzer fingers ready. we want you to vote on the best home for your buck in today's edition of million dollar homes. we will take a look at some of the most expensive homes on the market right now. head to cnbc.com/vote to pick your favorite. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out

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from general motors to apple to allergan, wall street's biggest players releasing their latest moves in 13-f filings. one of the most notable, george soros increasing his bearish bets on the u.s. market. what does this mean? >> so his fund, soros fund management, a hedge fund not actively managed by him although directed no doubt by him, has load up on a put position in the spdr, basically a bearish bet on the spdr expressed through options. right now it's 11.3 shares which rough math could have a value of -- >> that's the s&p 500 etf. >> yes, thank you. he also owns a small position in calls which would be a more bullish bet on the spdr etf as well as outright shares but well outweighed by his put position. people have noticed this and said is he bearish on the markets. and the question is, you know, what is the meaning of this. my reporting suggests that it's a hedge. he has of course a lot of long stock positions.

soros at least in recent years, i should say, isn't necessarily known for taking a strong directional bet on the markets. more likely than not, they are looking to offset some other things in the portfolio. that said, it's certainly notable that this position rose so much quarter over quarter. it was seven-fold in the second quarter what it was in the first quarter. there is clearly something going on there. >> what was going on, one of those things is that volatility came back, was so low in the spring and into the summer, that it became cheap. it became very cheap to buy puts. it could be something like that. >> so if it's a hedge, so the position then should kind of track his total investments and a lot of other kinds of names and parts of the market, then he's just protecting against whatever happens by buying this cheap protection on the u.s.? >> absolutely. it's an inexpensive way to protect yourself if there's a big fall in the markets. i know many other hedge fund managers that are doing this on some level. maybe not in as large size. they would say look, i have puts on the s&p or some other index, i have long positions here and there. at some point this summer or

maybe early this fall, i'm going to have to make a decision one way or the other. right now we are in no man's land. >> expensive way to do a hedge, because he didn't count on the media coverage of it. >> well, that's the other thing. just a general cautionary thing about 13-fs. at minimum, six weeks old. it's very difficult to kind of infer much of anything. >> absolutely right. based on his recent history, i would guess he still has some sort of s&p spdr put position but how large it is, whether he has taken money off the table since then, very well could have. an option is a cheap way to make a bet so it's not a bad idea if you have your doubts. >> lately, it would be paying off this year. thank you. coming up, it's that time again. real estate broker extraordinaire joins us with a look at some of the most expensive houses on the market. pick which one gives you the most bang for your buck. head to cnbc.com/vote. yeah, i'm married. does it matter?

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object. we are just showing you the most expensive homes we could get into. these megamansions battling to see which is the best bang for your buck and you voting will determine the winner. it is now time for the final round. today, the challenger, penthouse prestige, takes on the reigning champ, pious pad. vote for your favorite at cnbc.com/vote. we are keeping the location of each a secret until after we give you a look. get ready, because here's the million dollar matchup. >> own a mansion in the sky. this prestigious listing combines three penthouses, housed on the two top floors of this highrise building. the property doesn't include any land, but the 17,634 square feet of living space plus the 2200 square feet of breathtaking outdoor luxury is a rare extravagance in this urban enclave. there are three kitchens, 12

bedrooms, and 15 bathrooms all for a mere $118.5 million. hallelujah! this 1924 tudor estate set on19 nearly 3.5 acres of land was built as a convent, but converted into a residence a quarter of a century ago. walk through the hand crafted front doors into 15,000 square feet of heaven. the spacious three-story mega mansion boasts five bedrooms and seven full baths, and experience a piece of eden at the luxury pool house, or lays around the in ground pool, tennis court, or hot tub. list price $3,995,000. now voting is under way. it's up to select the winner. which is the better bang for your buck. a huge price gap. the penthouse for 118.5 or the

pious pad. cnbc.com/vote. dolly linz is here. dolly, we're always talking about how location is the first rule. what is the location of these two properties? >> well, columbus, ohio is the location of pious pad. they're very different, but close in size. one is over 15,000 square feet. one is 17,000. so that's quite close in size. both huge. the 15,000-square-foot one has a lot going for it because it's a great location in columbus, ohio, a beautiful home in perfect condition. >> this is the one that used to be a convent? >> yes, yes. but i have to tell you, they did an amazing job of converting it. and i'm sure it's a unique property in many ways. to live there, to own it, to keep it, not too big in terms of size of the lot. really perfect. >> i would just like to know how you can buy $118.5 million for

the -- penthouse prestige. that's got to be a location story. >> well, you can't justify it, okay. it's battery park city. it's a land lease. the highest price ever paid in this building is $7 million. >> what? >> 32 g went for $7 million. and the highest paid ever paid in battery park city is $10 million. >> so this would be ten times the previous highest price. battery park is on the very tip of manhattan. >> and it's like where my kids play mini golf. you don't see them playing mini golf alongside the millionaire. potentially a russian oligarch, a chinese person is not likely to buy a land lease. they won't do it. >> what does land lease mean? >> they don't own the land. they lease the land from the city of new york. they don't own it. it's not a freehold the way almost everything in new york. so that's a big killer on resale. >> and people are voting right now. you have a couple of second left

to do, if you haven't already. so i'm seeing here the penthouse lagging a bit. why is it even being listed for $118.5 million? >> i guess we would have to ask the selling broker. my own gut is the three sellers wouldn't get together unless they got some absurd number because they're not real sellers. they'll sell if. >> here we go. 61% say the pious pad is a better bang for the buck versus 39% for the penthouse. and your verdict is? >> definitely pious pad. definitely. it's a fabulous home. very exciting. >> three kitchens, 15 bathrooms? >> and you have to put three apartments together. so besides the 118.5, add another 30 to put it all together. >> you've got to come back and tell us who actually buys this property, if anybody. >> yes, i will. >> glad they let us in. dolly linz, thank you very much. you can take a look at more of the most expensive houses series at cnbc.com. and that will do it for that. now pebble beach, it's from super mansions to super cars here. pebble beach, best known for its championship golf course.

but our robert frank is there today with some very different types of drives. and robert, the price tag on those is almost as high as we've just been talking about. >> yeah. actually, these things look cheap compared to that penthouse. but a ferrari last night sold for, well, we're not going to tell you quite yet. but it became the most expensive car ever sold at auction. we're going to tell you how much. and we're going to look at whether these ferrari prices are going to continue. and we'll tell you what jay leno said about investing in stocks versus ferraris, coming up after the break. in india we have 400 million people

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welcome back. collector cars are a hot shot, but are they the next asset bubble? cnbc's robert frank joining us from pebble beach in a classic car auction where more than $400 million worth of autos are set to be sold. robert, i hope that buys at least 40,000 cars or something. i have a feeling it doesn't. >> yeah, not quite. you know, last night saw the most expensive car ever sold at auction, the hammer price $34.6 million. that's $38 million when you add in the auction fees. this was a 1962 ferrari gto. i've been talking to a lot of wealthy collectors today whether

this market volatility will actually drive more of their money into stocks. and it sounds like it might. >> it's over the long haul, the cars have turned out to be quite a good investment, and they're fun to drive. and you've got something tangible that you can hold on to. and you get to control your own destiny in a lot of ways. you buy the car, you have the car, you own the car. when you're dealing in the stock market, there are a lot of factors in flux every single second of every single day that you have no control over and you are just holding on and hope you're doing the right thing. at least with the cars you have a lot more control of what you're doing. >> guys to me, this market is getting a little overheated there are a lot of smart collectors that are actually selling right now there is a lot of flipping going on. this aston martin db-5 sold for $150,000 in 2004. then $750,000 in 2012. and now it's going for almost twice that. we spoke to jay leno. of course, the comedian and a car collector and investor. and he says it's hard to beat

the long-term return on cars. let's take a listen. >> i bought mclaren f-1 back in 1998 for $800,000. now it's worth $11 million, $14 million, with the exception of apple and microsoft and google, there is not many stocks that do that. >> now, you know, when you talk to wealthy collectors right now, it's really about the fed and the amount of money in the system. what they all tell me, what i'm hearing is there is really nowhere else to put your money. this ferrari, only $15 million. just a few years ago it would have made it the most expensive car at pebble beach. now it may be top 10. it may be top 20. it just shows you we're really at a new phase with prices. i'm not sure it's sustainable or not. >> thank you so much. i feel like that story stands for itself. anything further to add here? we got to go. >> not much, except it's less than a lot of paintings go for and you can drive it. that's owls a selling point. what get messner vows is when

the nonelite less special cars start getting categorized as collectibles. >> plus, have you ever seen "ferris bueller's day off"? >> by the way, i don't think it's that easy to break into the odometer and turn it back. >> "fast money" is coming up right now. we'll hand it right over to mandy injury in for melissa lee. >> thank you very much. thank you, kelly. indeed, "fast money" starts right now. we are live from the nasdaq market site in new york sometime square. i'm mandy sitting in for level level tonight. brian kelly and guy adami, good evening, everybody. let's get straight to the top story. stocks selling off earlier today on reports that the ukrainian artillery attacked a russian military vehicle after it crossed into ukrainian territory. russia's defense ministry is denying that attack. but the impact on stocks was quite real with the dow down nearly 140 points at the lows, and the s&p also down about 14 points. this is really interesting, and certainly it wasn't just stocks