his young neighbor's lemonade stand, calling it an illegal business in a residential area. now, karma coming back to bite him. the man's name is doug wilke and now he's being investigated for running an illegal business of his own, according to "the tampa bay times." that's the karma bus, boom. >> kind of like lemon froiter. >> it is. that leaves a sweet taste in my mouth. thanks for watching "street signs." can >> "closing bell" begins now. and we welcome you to "closing bell." i'll reintroduce myself, bill griffeth here at the new york stock exchange. >> i'm michelle caruso-cabrera in today for kelly evans. and summer is over, but -- >> no, it's not. summer is not over. saying that summer is over the day after labor day, pardon me for one second, but i have a thing about this. >> i had no idea. >> this is like saying winter is over the day of new year's day. it's not. we've still got weeks of summer to go. >> it's back to school! don't you feel like it's back to school today? >> then call it back-to-school

time. >> you are back to school today. >> i am. call it back-to-school time. >> summer's over, but does that mean the rally is as well? a tepid start to stocks kicking off the month of september. the s&p's lower by two. the major industrial average down 40 and the nasdaq higher by 10 points. >> it didn't seem so long ago that the cruise industry was on the ropes with one mishap after another. remember all those pr problems they had a couple years ago? >> yeah, the smelly problem, the, mm-hmm. >> today it gets a big vote of confidence with news that norwegian cruise lines is buying oceana and regent seven seas, combined into a group called prestige. it's a $3 billion-plus deal. and we will speak exclusively with norwegian's ceo, kevin sheehan, in a first on cnbc interview coming up here later on the program. $400 for an apple watch? recode is reporting that might be a high-end price point for the long-anticipated wearable that apple is expected to unveil a week from today at a major

product event. what kind of features would that watch have to have to make it worth $400? >> do you wear a watch? you don't wear a watch. >> normally, i do. >> you do. >> i just happen to have a bracelet on today. i do wear a watch. >> millennials especially. i don't think they wear watches anymore, right? >> i wear a glow in the dark watch when i travel overseas. >> millennials don't wear watches, my point. the people i think would be their target audience -- i'm skeptical is what i'm saying. >> that's true, because you've got it on your phone. >> right, exactly. you want to know what time it is, look at your blackberry. >> maybe it's going to be something that's both, and hence, it's not the watch, it's a computer on your arm. >> we will see. this is for all my friends out there. we're off the lows of the day. there you are. i said it. the dow's down 43. we had been down 88 points at the low end of the day. we're at 17,055. the nasdaq, as we said earlier, it up ten points right now, gaining to a 4,590. and the s&p still right at 2,000, down about three points

right now. >> i don't like being reminded i'm not a millennial, bill. >> i know. i'm sorry. let's go over to dominic chu who i believe also is not a millennial. >> i think i'm on the cusp, bill and michelle, so i don't think i'm a millennial. >> stop bragging. >> yeah, yeah, anyway. so, we're watching shares of pg&e. now, the reason why is the stock is spiking on news that two state regulatory judges ruled that california's largest utility should pay a $1.4 billion penalty for a deadly 2010 natural gas pipeline explosion in san bruno, california. you can see their shares are up on this. maybe shareholders expecting maybe a little bit of certainty with a price tag being brought to the number. still, though, bill and michelle, this $1.4 billion levy is the largest in california state regulatory history for the public utilities commission. and again, they're saying that these penalties, the $1.4 billion, must be paid by pg&e shareholders and are not, again,

not recoverable from pg&e customers. and i know, bill, you grew up in california, i did. we know pg&e well. this is one bit of news, at least for now, shareholders have a price tag on what they'll be owed in terms of the overall fine. back over to you. >> and gee, if money is spongeable, how do you guarantee it doesn't eventually get passed on? >> that's up to the chief financial officer to figure out, right? >> uh huh. >> dom, thank you very much. let's get to the day's market action. hank smith from haverford investments, joe duran from united capital financial advisers and our own rick santelli. by the way, we should mention as well one market we hadn't gotten to, which we will be mentioning throughout the next couple hours, the price of oil down sharply today, gang, about a $3 decline there. rick santelli, i'm going to start with you, then. how much of that do you think is the rising dollar? i mean, is there a fundamental thing going on or what do you think's going on here? >> well, you know, rising dollar is obviously going to have a

valuation effect. a dollar-denominated commodities, but i think when it comes to the energy complex, i think there's many traders that, even though geopolitics never really had a big correlation with regard to some of those energy prices over the last several months, whether mideast or ukraine geopolitical stories, i still think we amassed a lot of speculators, and let's, of course, mention that at least driving season may be over, although the price of my gas is going up. i don't believe that's what it is. but i do think we still have something to look forward to, the cold war. i think what's going on with the ukraine area will, of course, hit some type of peek, my opinion, when the weather gets cold, because you know, if you have a trump card in a game of cards, you tend to use it when you're dealt it. we all know that putin does have that trump card in the form of natural gas. i also think, bill, that the one area nobody wants to talk about is underestimating the global horsepower with regard to energy use, and i think that may factor in as well. >> i agree.

>> in fact, let's talk about that right now. standing by to tell us more about what happened with light sweet crude oil today settling sharply lower, jackie deangelis. bring us the numbers. >> hey, michelle. let's look at the numbers. the dollar index at a 13-month high took crude down $3.08 today, closing at $92.88. brent closing down nearing $100 a barrel. rick santelli hit on the key points of what we're looking at, what traders are watching. they are saying the demand picture looks bleak, specifically worried about china. they're also saying that geopolitics right now appear manageable, and that is why these prices continue to go lower. what we saw, this steepening of the decline in the end of the day, that really was technical pressure as we broke through some key levels. i do want to talk about the metals as well, because the dollar impacting the gold trade, down more than $20 at the close, closing at $12.65 even. this is the lowest that we've seen gold since mid-july. and traders are saying, while geopolitics are still on the table, it's not enough for them

to ignore the fact that there's not a lot of physical demand out there, the equity market is strong right now and you're seeing money flow into equities, and also that inflation isn't really a huge worry right now. so, of course, that dollar having an impact as well, but a lot of reasons that people want to stay out of the gold trade. back to you. >> yeah, in fact, deflation is the big worry over in europe. >> right. >> thank you, jackie. lindsey, you're the economist on the panel. when you see a decline in the price of oil like that, do you think, wow, that's great for the economy, or do you think, wow, is that signaling there's something wrong with the economy? >> as we know, the fastest way to derail the u.s. consumer is sustained heightened energy prices. on the flip side, as we continue to see price reprieve, that should add a very welcome support to consumer spending. as you know, we've seen retail sales peak back in march, but since then continuously decline, setting a very negative trend as we head further into the third quarter. so, certainly, at this point, the short-term decline in energy prices is going to offer a lot of support, not only to the

consumer sector but growth overall. >> you know, hank smith, once upon a time, there was an inverse relationship between oil and equities. as oil went lower, equities went higher because their costs were going down, but lately, there's been a correlation because a lot of energy stocks play a big role in this market right now. so, as you see oil prices go lower, are you encouraged or discouraged for the equity market? >> well, i agree with the previous guest, very encouraged from a consumer spending standpoint. it's more money in the consumer's pocket. and look, what we have right now is a goldilocks scenario, not too hot, not too cold. there's not enough growth to have the fed really get any more aggressive than they are right now, and there's not enough growth to create any excesses. and at the same time, the risk of a recession is extremely low. this is a good environment for equities, and we think it's going to continue that way into next year. >> warm oatmeal.

we like that, i guess. >> is that the new version of the goldilocks? warm oatmeal. hugh, do you agree there? what's your sense of what's happening with the markets here, especially in light of oil and whether or not the fed here in the u.s., compared to the ecb, is going to be relatively tighter? >> well, i think you're seeing a separation of the u.s. economy from the rest of the economies in the world and the fact that you're seeing dollar strength is a part of that flight to where the action is, and that's the u.s. economy. the fact that the energy complex is showing declining prices is a great tax cut for the consumer, and we've seen in the last consumption data that energy costs and food costs are beginning to come down, which frees up discretionary cash flow for the consumer. so, we're very optimistic that with the improving fundamentals in the u.s. economy, those major secular trends could stay in place for quite a while. >> we haven't mentioned, joe duran, the seasonal trend. we had a pretty strong summer for the markets. august was very good, but september traditionally is not

so good for the market. in fact, it's the worst month for the stock market. what do you think happens this month here? >> well, it's the worst month, except there are two things that are different. it actually does quite well when you have a positive trend going into september. so, after you'll see noise in august, increased volatility and then a decline in september. we didn't get that this year. and so, as usual, when you have a strong august, that it actually flows into i think around a 1% increase in september. secondly, we're starting -- if you take a september-to-september in the third year of a presidential cycle, that's seasonally a really good time to invest. so, i would not be surprised if we don't get a little bit of volatility, but the market does surprisingly well from here to year end when you look at those two things together. >> all right. >> what does that all mean for the bond market, do you think, rick santelli? >> you know, i think that the bond market, it's funny today. as we hover near a 2.42 yield, wen we could have the highest yield

close in two weeks. two weeks ago wednesday, actually. i think anything above a 2.45 and three basis points, ending above 2.48 could give us a reversal and i haven't seen a formation for a reversal in a while. i know no one wants to hear this -- i don't want to hear this -- but i think with elections, what, nine weeks away? i do think the notion of both houses being conservative could have huge implications for the markets, and i think there's been an awful lot of silence regarding that potential outcome and its impact on the notion of less spending, less government. >> yeah. >> lindsey what about the fact that we're getting the big employment number on friday? how much of the flat market that we're seeing today is hesitation ahead of that number? >> right. >> you know, nonfarm payroll is obviously the most exciting day of the month for everyone, but it's been less exciting as of late. the top-line number, remember, has been very impressive, above $200,000 for the past six months, but that hasn't translated into improving

fundamentals in the labor market, certainly not enough to translate into wage pressure. so, i think the market is getting a little disassociated with the employment data simply because the top-line number is not giving us a true sense of what's happening out in the labor market. >> all right, folks, good to see you all. thank you for your thoughts, as we begin the month of september on wall street. see you later. all right, we have about 47 minutes before the closing bell. the dow jones industrial average is lower by 45 points, the s&p's lower by 3, but the nasdaq is in positive territory by more than 9 points. >> technology doing well. facebook, as a matter of fact, surging more than 40% this year alone. it could hit $92 over the next year, according to one wall street pro. it's in the $76 range right now. the bullish case for facebook is coming up with that analyst. also ahead, find out if wall street bear turned bull david rosenberg is starting to have doubts about this market. plus, wait until you hear what he thinks could drive a correction. and remember this? a little history lesson here.

russian premier at the time with an emotional outburst at the united nations back in 1960 after being called out for depriving eastern europeans of civil rights. khrushchev's granddaughter, nina khrushcheva, naw school university professor, will be with us today weighing in on vladimir putin and whether or not he's inciting a new cold war. >> and remember, khrushchev is the one who handed crimea back to ukraine! >> exactly, and she'll have some thoughts on that coming up here on "closing bell." stay tuned. from 2000 to 2011, on average 17 manufacturers a day shut down in america.

there's no reason we can't manufacture in the united states. here at timbuk2, we make more than 70,000 custom bags a year, right here in san francisco. we knew we needed to grow internationally, we also knew that it was much more complicated to deal with. i can't imagine having executed what we've executed without having citi side by side with us. their global expertise was critical to our international expansion into asia, into europe and into canada. so today, a customer can walk into our store in singapore, will design a custom bag and that customer will have that american made bag within a few days in singapore. citi has helped us expand our manufacturing facility; the company has doubled in size since 2007.

if it can be done here in san francisco, it can be done anywhere in america.

markets mixed today. the industrial average, the s&p, slight declines so far today, while the nasdaq is holding on to a gain of about 10 points. we have about 45 minutes left in the trading session. >> dominic chu is covering the big movers today. what's going on today? >> michelle, bill, we'll start off with tesla, hitting a record high, as steeple nicholas analysts upgrade it to a buy and slap a $400-per-share price target, saying the company is well positioned for growth. so, those shares you can see up about 5% on the day. regeneron and novartis hit highs on their respective drugs for

heart failure, up 3% to 4% for those companies. but a different story for exelexis, which lost half its value after the prostate cancer failed. the company is also slashing its work force 70%. also a tough day for cons, reporting weaker-than-expected second-quarter results and cut its full-year earnings outlook as more customers fail to make payments for its consumer credit card unit. and we're going to end with facebook shares, getting a boost from rbc capital, which repeated an out-perform rating and put a $92 price target on the stock, citing robust user growth. facebook shares at session highs, up by nearly 2%. so, michelle, bill, a decent day for facebook's stock. back over to you. >> oh, yeah, certainly. we're going to talk about it more. for more, let's bring in mark mahany, lead internet analyst at rbc capital and put out a note putting facebook at the top of

his list with a $92 price target. it's only $76 today. wow. >> welcome back, mark. >> hey, bill. >> what's the rationale, mark? >> it's been our top pick since earlier in the year. people talked about a couple new revenue opportunities at the company. we call them green fields, things like instagram, monetization, video ads. what we try to do is quantify those, including the whatsapp acquisition. there's almost $3 billion in incremental revenue, over 30 cents in incremental earnings they can make in 2013. we're above the street in terms of estimates, earnings, revenue. we think they adds more fuel to the fire and core growth in the business is still very much intact. >> i'm going to sound like i'm picking on you, but i'm not. at the ipo, it was such a debacle. nobody liked it. they weren't into mobile. you know, zuckerberg was looking -- well, he got married, wasn't keeping his eye on the ball. now -- >> he was buying things without telling everybody, spending lots of money. >> now everybody likes facebook.

has it changed that much or have perceptions changed? >> i guess both is the honest answer to your question. look, this company had a disastrous ipo, made a lot of mistakes and they missed the mobile transition. it took them about a year and a half to catch up to it, and that's frankly when we upgraded the stock back then at around 20 bucks. once they figured out mobile, which is the single biggest trend in internet today, then it started to work fundamentally and the stock started to work. >> let's talk about earnings. price to ratio 47, trailing 83, 20 times sales? i mean, those are mostly -- >> impressive. >> you know, i've seen the references to price to sales. look, this is a company with mature margins. there's no reason to look at sales on this. and if you look at earnings, this trades at 30 to 35 times earnings. that's certainly not cheap. but given the growth here, we think it's sustainable 40% earnings grower. we think the market, as it did with google back in its heyday, but you have to go back to '06

and 2007, we think the market will pay 30 to 40 times earnings. apply those multiples to it and the risk-reward looks attractive. >> what's the growth driver down the road? i mean, let's just say you get your $92 price target. i'm sure then you think again, does it deserve a higher price target or something? but what is it that grows this company going forward from here? >> well, i just want to step back a little bit. there's an assumption in the question and there's an assumption in the market that what we see today in facebook is what we're going to see in the future. there are still very large advertising categories. online travel is one, financial services, automotive, film and entertainment. there are very large advertising overtimecals that have yet to commit to facebook, so we think they will. and there are new growth drivers. thaev not monetized instagram to a penny. there is no advertising revenue from instagram. >> i didn't realize that. it's significant. >> it's a large infrastructure they have. then they bring in video ads, tapping into those dollars.

we think whatsapp can help at the margin. those are the three biggest new drivers we haven't seen hit the p&l on those. we're bullish. >> i mention in my household, we call it fogie book, because my kids won't touch it because i'm on it. >> you're not a fogy, bill. >> but you don't have the younger generation that they would covet. they're elsewhere, in instagram, some other snapchat, those things. so, is facebook -- does it need to do something like buy something that's going to attract the younger audience, or what do they have to do here? >> well, bill, i think my household mirrors yours. i don't tell my kids this, but they're on instagram. it's actually owned by facebook, but i don't tell them that. so, i think facebook hedged itself by buying instagram. and by the way, they will have to make other acquisitions in the future. they'll need to always be, you know, relevant. if they're going to grow and be a utility for certain parts of the demographic, that's not useful. but remember, soccer moms is an

advertising demographic are a lot more attractive than soccer playe players. >> like what? what are they going to buy? tell us now. >> as soon as i figure it out, i'll let you know. >> very good. good to see you, mark, thank you. >> thanks, bill. thanks, michelle. >> mark mahaney of rbc joining us. >> you're not a fogy! i am not a millennial -- >> compared to my kids i am. but thank you. 40 minutes left in the trading session. the dow holding steady with a decline of 46 points. the nasdaq is the standout to the upside with a gain of 10 right now. coming up, lipitor and other statins. a new class of cholesterol-fighting drugs could make the pharmaceutical industry billions of dollars in profits. find out who is leading the pack. and up next here, russian premier nikita khrushchev's granddaughter on vladimir putin and if the russian president is creating another cold war environment. i'm really looking forward to this interview coming up. stay tuned. how do you beat the number one seed?

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welcome back. another u.s. journalist beheaded by the terrorist group isis. eamon javers has the details. eamon. >> hi, michelle. really awful news here in the case of journalist steven sotloff. he was a writer for "time" magazine and "foreign policy," among others. now a new video surfacing on the internet, apparently released by isis, apparently shows the beheading of mr. sotloff at some point in the recent past. u.s. authorities say they can't confirm the authenticity of this video that's just surfaced, but

they're looking at it and trying to determine what it shows, when it was made and what, if anything, they can determine about the people who did this apparent act of terror. here's jen psaki, a spokeswoman for the state department, just a few minutes ago, talking about the release of this video. >> the intelligence community will work as quickly as possible to determine its authenticity. if the video is genuine, we are sickened by this brutal act taking the life of another innocent american citizen. our hearts go out to the sotloff family, and we will provide more information as it becomes available. >> the obama administration now all fully committed to the tragedy of bombing isis in iraq and pushing back along with kurdish allies on the isis advance in the northern part of iraq. the question is whether the united states is going to get into a more expanded war against isis inside the area of syria itself. that question still undecided. also some question now about whether we're going to hear from president obama today on this

issue. that is one possibility here in washington but no confirmation that we'll hear from the president yet, guys. back to you. >> thank you. that horrific story happening as president obama is traveling to europe to meet with nato allies, as the fighting between ukraine and russia escalates. according to our next guest, the only way for the u.s. to stop vladimir putin and russian forces from advancing further into ukraine is to enact very serious sanctions. >> joining us now with more, we have a cnbc exclusive. we welcome a professor at the new school, the granddaughter of former russian premier nikita khrushch khrushchev. does vladimir putin have an end game in mind and what is it? >> he absolutely does, and the end game is to ensure that ukraine remains in russia's backyard, and that's what he's doing. because if the u.s. has a sphere of influence, he thinks russia has a sphere of influence. and in fact, he feels it's very

unbecoming of the united states to really act as if he doesn't and he shouldn't. and that's what he's doing. he didn't want to invade ukraine, but he certainly was going to destabilize it, and that's what he has done effectively. >> when you say stay within their sphere of influence, does that mean not allowing them to join the european union's economic group? >> well, it was supposed to be negotiation. >> right. >> how much would go to russia, how much would stay within the european union. now the conversation has moved on to nato, and nato is certainly a no-no for russia. >> that being said, we have this meeting happening this week. i think a lot of americans would understand, we would not want mexico or canada to fall in the sphere of influence of russia. we would find that offensive and we would fight that dramatically. so, does that to some degree give vladimir putin some justification for what he's doing here? >> well, we may not agree with his justification, but it's certainly his justification. the united states had a doctrine during the khrushchev times and

even before. the cuban missile crisis happened. the rockets were sent to cuba and the united states said, no, no, no, our sphere of influence. so what putin's doing is saying this is my doctrine and you're interfering with it. you are doing all the things -- you are not giving me, by the way, any leverage. i want to solve it politically, but you're pushing me. he really thinks he's being pushed militarily. he promised to the ukrainian president that it's not going to be solved militarily, and then we're surprised that he's opening new fronts. he's really making it impossible. it's only a political solution, and at least east part of ukraine would remain within russia's sphere of influence. >> you know, it became part of g-8, but at best, it was a tenuous relationship anymore. what does this do to that now, do you think? i mean, it would seem this is what vladimir putin aspired to, become a member of the g-8, become a bigger influence in the western economy. but now what happens to him? >> well, absolutely.

actually, it was his predecessor, boris yeltsin, who became a member of g-8. and when putin came in, he really felt that he was sitting at the big boys' house. >> right. >> he was a western country. in fact, early in the 2000s, he said i don't see how nato is a problem for russia, how it's a threat. but then he felt that at every turn, it was, when russia was helpful, it was used, but when russia was not helpful or when the big boys, the brits, the french, the americans, they would sit at a separate table. so, russia would always be a little imposter, or big imposter, but really was not welcome. and i think that relationship has developed, and that understanding of being misused or mistrusted by the west really has been around with him. >> ukraine has been asked to join nato. foreign policy sources tell me that is never going to happen for the very reasons that you state. do you agree that that's just off the table? >> well, we can't say never, because as you very correctly pointed out, in the 2000s, there

was a hope that the relationship would become beautiful. >> but right now -- >> right now, i don't think it's a possibility, and that's what putin's end game is, is that all east ukraine, even if it remains within ukrainian territory, it's russian influence. >> very quickly. i mean, we hear that the sanctions that have already been put in place are starting to take a toll in that there are some debt payments that are coming due this year that some of the russian corporations will not be able to pay because of the sanctions. and you know, this will move into the next year. do we see some sort of resolution before the end of the year because of the current sanctions, or do they tighten the screws morally? what do you think happens here? >> it would not be a resolution the way the u.s. wants it, because the u.s. wants russia out of there and it the way it was. it's not going to happen. so, there may be some resolution. that's why putin is pushing for political solution. militarily, it's a problem. but there is sanctions already very hurting russian people, and

in fact, they already start talking about the military exercises and the physical exercises at the universities. they're reinstating physical exercises. we're going to be all soldiers again. >> your grandfather was a huge fan of ukraine, actually handed crimea over and gave the ability for ukraine to be what it is today. >> absolutely. >> what would he say right now? >> um, i think he would say ukraine can determine its own future, but he would be very displeased with the western approach. he would say, look, you punished me for your doctrine. you're not allowing us to have our own. >> fascinating. thank you for joining us today. >> great having you. >> the granddaughter of nikita khrushchev joining us today. >> we have 28 minutes before the bell. the dow jones industrial average is lower by 48 points, right around that level now for the last couple hours. >> we should mention, oil has been the big feature today, down $3. >> and it's not helping the dow at all. >> nope. i said, you know, those oil stocks don't help that, right? when we come back, david rosenberg and dennis gartman weigh in on the geopolitics heating up in the different

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welcome back. a mixed market today. the dow and the s&p starting the month of september on a slight down note. the nasdaq, though, gaining 10 points today, so technology in the aggregate is doing better than the rest of the market here. >> so much for the old adage, sell in may and go away, because the major averages tacked on pretty decent gains from memorial day to labor day this year. >> dominic chu has a look at september and whether or not investors should sell now instead, right? >> so, there's a reason why overall you're talking about a scenario where september is a real big deal for a lot of investors, because it's the worse month in terms of performance for the s&p 500 of all the months of the year. you go in data really back to 1950, and you can see here the s&p 500 is down 0.5% on average in the month of september during that time frame. now, if you kind of look ahead to what's happening more recent term, you look at some of the stats here, because the s&p 500 over the course of the last five years, so since the financial

crisis, is actually up 2% on average. and get this, it's been up 4 out of the last 5 septembers, so it begs the question, which side is winning out? that's why the september swoon is so important for investors right now, especially with stocks sitting near record highs. if you look at the sectors that have done the best overall, consumer discretionary has been the best performer, up 3.5% on average for september during the last five septembers. the worst-performing sector has been the financials, the banks. they're only up by about 0.5% on average for the month of september, at least over the course of the last five years. as for the individual stocks that people are watching, one of them is under armour, because on average -- well, at least in terms of the overall momentum that it brings going into september, between memorial day and labor day, s&p 500 stocks, under armour is the single best performer this past summer season. it's up 41%. of course, that's a big deal, because you look on the other side of the spectrum, and genworth financial, a

financial-type company, is the worst performing stock this past summer season, down about 18%. so, again, consumer discretionary a focus for the near term, also financials. and then these two stocks in particular, under armour and genworth, michelle, bill, two of the stocks that people want to watch, because they have some momentum, either on the up side or the down side heading into this all-important month for the markets. back over to you guys. >> thank you, dom. all right, what else is in store for the markets this september? some have suggested reality would set in when people got back from vacation and saw where stocks were along and how much global turmoil there is. >> really? >> you were away. >> joining us now with some thoughts on that, david rosenberg, also cnbc contributor dennis gartman from "the gartman letter." so little time, so much to talk about. dennis, first of all, just oil and gold today. i mean, is that signaling anything other than just a strong dollar, and why now, you think? >> well, i think there was one

thing that people need to understand. there's another, at least one more tanker, and perhaps two, of kurdish oil moving out of sehan, and we may have as many as 11 or 12 tankers of kurdish oil out on the oceans looking for buyers. if oil's the most fungible commodity in the world, and it probably is, that's just a lot of crude oil looking for a potential buyer, and the kurds really don't care what price they get, as long as they get some price, because as i like to say, they stole that oil fair and square from the iraqis. they have no inherent cost in it, and they need to sell it. that's the major reason why crude oil prices are down. and gold is simply following crude oil to the down side. and we haven't had any really -- any great escalation in geopolitics over the weekend that could have been deemed to be untoward. so, put crude down $3, which is somewhat surprising. gold prices have to go down. >> david, what do you think of the move in the dollar today and

what it's done to oil, or not done to oil, as dennis says? >> well, i think these are commodities priced in u.s. dollars. and i think if you take a look at other currencies that are priced in u.s. dollars, they show something very similar. so, i agree with dennis, that to a large extent, this is reflecting a broad-based move in the greenback. you know, you've got two central banks meeting on thursday. you've got the bank of japan, you've got the ecb. the japanese economy seems to be suffering some pretty big hangover from the sales tax hike. the economy is weakening again. who knows if the boj has to step up its quantitative easing, which is ongoing and significant. and the debate on the ecb is whether or not draghi's going to take out the big bazooka, quantitative easing. so, at a time when the fed is tapering, that's leading to flows into the u.s. dollar. i suspect that will continue over the next several months. >> let's bring it home to the u.s. equity market, which is where we've been heading here for this month of september, dennis.

you're a traditionalist. you watch those cycles. does this set us up for a disappointing september for those who are bullish this market? will tradition hold, or you know, do we continue higher in this teflon market? >> september is characteristically an ill month, except in years when the stock market has been strong. if you go back and take a look at years when the market has been strong, in my word, it has been nothing other than strong thus far, september has tended to be as normal as the other months. so, let's be simple here. it has been a trend from the lower left to the upper right. it has been a bull market. a lot of smart people have tried to sell it short. i've tried every once in a while, and every time i did, it was the wrong thing to do. it's still a bull market. you should remain long. i like the metals. i like aluminum, and i like things that if you drop them on your foot, they'll hurt. coal. no one likes coal. and coal stocks are acting better along the line. it's still a bull market. you still want to be long. >> david, you were bullish for a

while. are you still? >> yeah, as a matter of fact, i am. and you know, if i had an area of concern, say beyond the geopolitics, it really came down to fed policy. i was of the view that we'd finish the year with the unemployment rate below 6%, core inflation around 2%, that the fed would have a hard time selling to the investing public. that zero is the appropriate interest rate in that environment. but you know, when you're a central bank that has 18 or 19 labor market indicators and you've convinced the market that the unemployment rate is not the be all that ends all, you basically have tremendous flexibility. my sense now is that janet yellen, especially with core inflation at 1.5%, they're probably going to be on hold for longer. that means that liquidity is not going to be a constraint on the market. valuations may well be, but liquidity won't be. and if i'm not mistaken, they got a 59 reading in ism today, so economic growth is going to stay intact. we could get a near-term correction, for sure, but it

won't be a sustainable bear market at all. >> the takeaway from janet yellen's speech in jackson is that she's keeping a closer eye on unemployment and if it continues to drop, then she becomes more aggressive, the possibility exists that they become more aggressive when they start to raise interest rates, whenever that's going to be, dennis. is that the thing that will end this bull market, you think? >> well, we understand that the fed has a dual mandate, but i think they're down to a mandate and a half. they are far more concerned about the unemployment rate than inflation. i'm with david. i think they stay low long, for a much longer period of time than almost anybody had anticipated. even so, they are tapering, and there's a difference between what we're going to be doing and what the bank of japan or what the ecb are going to be doing. >> right. >> right. >> they are going to be easing dramatically. we have no choice. >> all right. >> but we're going to be at a point where 0% interest rates look tight compared to other people. >> yes. >> i mean, can you imagine? >> exactly. >> can you imagine? >> good to see you both. thanks for your thoughts on the

markets. holding steady, that's the best way we can characterize it right now as we begin the month of september. we've got 18 minutes left in the trading session. the dow is down 35 points. coming up next, statins made pharmaceutical companies billions of dollars in profits as a kind of miracle drug for high cholesterol. meg tyrell's going to look at the next class of cholesterol-fighting drugs being developed right now. >> also ahead, could the housing market, very important, actually heat up this autumn? our diana olick will have a special report in the next hour of "closing bell." stay tuned for that, coming up. . and... exhale. aflac! and a gentle wavelike motion... aahhh- ahhhhhh. liberate your spine, ahhh-ahhhhhh aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep. find out how fast aflac can pay you, at aflac.com.

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beyond lipitor, cholesterol-fighting drugs that are known as stiatins, they've made billions for the pharmaceutical industry. >> meg tirrell now looking at the new class of fat-fighters that could do the same thing. meg? >> hey, michelle. that's right, it's a race to a market that could be worth up to $10 billion. millions of patients with high cholesterol don't respond to or get enough of a benefit from statins, like lipitor and other cholesterol-lowering drugs. so, there's a new class called pcsk-9 inhibitors, among the most important parts of some drug makers lines. amgen who partnered with sanofi,

is leading the race. they've applied for approval in u.s. and europe, while amgen and sanofi sent the stock. they're given as injections, which cause some to wonder whether patients will be as likely to take the drugs. the ceo told us that compliance was very good in the studies just reported. and behind amgen and regeneron are other drug makers, including pfizer and eli lilly. so, it's a big race for potentially a very big market. back to you guys. >> meg, thanks very much. something to keep an eye on. heading to the close, we've got 12 minutes left in the trading session. the dow's down 32 points, nasdaq is higher by about 10, oil down sharp, down 3% today, and gold just continues to tumble here. norwegian cruise line's ceo is speaking with us in a first on cnbc interview. find out why he is shelling out $3 billion to buy privately held prestige cruises. stay with us.

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welcome back. the dow trying to come back here. we're down just 29 points. at the low of the day, we were down 88, now at 17,069. nasdaq continues higher, a gain of 17 with the s&p down a point

but still above 2,000. >> and i think the nasdaq being higher reflects its lack, maybe, of oil companies? >> yeah. >> because thanks to oil, pushing oil companies down today. >> okay, let's talk about that, shall we? joining us, mike lear from athena capital advisers and kenny poe kari from o'neil securities. kenny p., starting off what is traditionally the worst month of the year for the stock market -- >> hey, not so bad, right? >> so far. >> no, so far, but i think you have to be careful as you go through. but it's another quiet day, just after labor day. i think people are just getting back in. they're being very, very cautious this week. there's a lot of information. certainly, the big ecb announcement on friday, i think global investors are really kind of sitting and waiting, expecting that they're going to hear this big bazooka. >> because that could push the dollar even higher if it pushes the euro -- then we could see more sell-offs in commodities, no? >> yeah, we could see a sell-off in commodities and we've had an overweight bear, so not great positioning for us, but we have

a lot of cash on the sidelines we could put to work. >> is it good for other stocks, the rest of the market when you see oil moving lower? >> yeah, it helps the consumer spend more. they've been constrained for some time, the job market is not great. if you look at the cover of "barron's," there is a lot to be made of this being a secular unemployment we haven't seen in some time. >> speaking of which, we get the jobs number. i'm surprised you're thinking more about the ecb? >> i think the jobs, look, they were expecting 225,000, right? that would be seven or eight months in a row of plus 200,000, but the problem always is the quality of those jobs. we're creating more temporary jobs than we are well-paying, full-time, solid jobs, and i think that continues to be some of the confusion that that good job number creates, right? >> bottom line, what are you telling clients to do right here? >> we've been overweight cash for a while, but we've been trying to find opportunities where we can. so, something that a lot of people don't have is foreign bonds. so, we've been adding to, as more and more emerging markets,

total return, that gives you about a 5% yield and that's why so far this year, it's been up about 6%. so, that's a good place to hide out. >> find some income. >> yeah, find some income and a little bit of value. >> we had a strong august. some people are saying that argues for a strong september, then. >> well, you know what, it may well argue for a strong september, but i think if you look back in history, september has traditionally been a weak month, right? it's only day one of september. we've got 28 more days to go. >> yeah, but i want to know what's going to happen the other 28 days. >> here for you. >> i hear you. >> you're the stock market guy. >> yeah, yeah, yeah. no, i actually think a lot's going to depend on what happens on thursday. if the ecb comes out and says, then i think the market actually once again is going to move higher, because it's just another central bank jumping in there, offering accommodation and here we go. >> you've set up the whole world now for big disappointment, too. this could be really ugly. >> absolutely. >> what will draghi do? >> if he does not announce, i think you'll see a sell-off in europe and a pullback here. i don't think you'll see the crash, but i think we'll definitely see nervousness and a

pullback here, which would play right into his cards because he's raised some cash, looking for that opportunity. i don't think you get the big 10 or 15% correction, though, ha they're all talking about. >> if anything, though, it could push our rates even lower, right? >> yeah. >> and is that good or bad for the stock market here? >> probably good. going to put more cash to work. you've got low-cost cash, people are willing to take some leverage, so i think it's a positive. >> all right. >> we're taking a break here, bring you guys back here, because we're coming back with the "closing countdown" any moment now here. and after the bell, recode says apple's considering a $400 price tag for its new wearable device. was we want to know if you'd pay $400 for it? cnbc.com/vote. you are watching cnbc. act i. scene 3.

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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. all right, let me just show you quickly what happened today. i'm not going to show you the nasdaq, but that was higher today. that was the outlier in the stock market. it's up 16 points right now. this is the dow, obviously, down 88 at one time, have come back, down 36 points as we go out today. the two markets that were really the highlight, oil and gold. oil down 3% today. it was down $3 on the settlement. it's been trading in the electronic trade after that, but it's at $93.11, holding steady at these lower levels. and gold also trading lower

today as the dollar moved higher. so, pushing both of those down in today's trade. look at gold down $20 at $1,266. mike lear, you're overweight in commodities? >> yeah, yeah. >> are you going to buy more gold or what are you going to do? >> not right away, but we've been in the trade for a while. gold's a little bit of an enigma, but we have added more on the energy equities. >> do you buy those because you think fed policy is inflationary? is that what you're getting at? >> we're more along the lines of this is just a valuation play. >> okay. >> if you look at the world during the fifth year of a bull market, everything looks expensive, and commodities are relatively cheap, so it's a good place to put money to work. >> got it. meantime, stocks, are you skeptical at these levels here? >> you know what, i'm not so skeptical, as we've heard, you know, most recently even jim paulsen coming out, which he turned from being a real bull to almost being concerned. i'm not that skeptical. i think a 3% or 4% pullback, i think that's what you get. >> good to see you both.

going out with about a 30-point decline for the dow, but the nasdaq 16-point gain. let's talk about that and a lot more. we have the ceo of norwegian cruise lines, about their $3 billion acquisition announced today. that's coming up and more on the second hour of the "closing bell." welcome back to the "closing bell." i'm michelle caruso-cabrera in for kelly evans. bill's going to rejoin us in a moment. here's how we're finishing the day on wall street. the dow jones industrial average lower, down 13 points, 17,065. the nasdaq composite finishing higher by 18 points, 4,598. and the s&p 500 still holding above the 2,000 level, even though there's a decline of one point. let's bring in today's "closing bell." michael jones from riverfront investment group, nathan back rack from simply money advisers and our own kate kelly. also with us for more on the first trading day of september is "fast money" trader guy adami. kate, let me start with you.

what are you hearing from market participants about why oil is so much lower, considering we still have all these geopolitical tensions? is it simply the dollar? >> i think the dollar's absolutely part of the story, but the other thing i'm hearing from commodity traders is the markets are sort of bored. they're sort of exhausted. there's a sense of complacency out there. and there are those who still think that crude oil, at least in the brent market, if not ti, should be up to $200 a barrel -- >> really? >> based on over time a lack of spare capacity and continuing concerns about geopolitical risks taking oil production offline, but we've seen some of that this summer and little or no impact. so, the notion today is why are people going to start caring now? as one person put it to me, somewhat dryly, if there's not a huge nuclear war over the weekend, it feels like oil's going to open lower on monday. >> mr. guy adami, trader, sir, what do you make of the first trading day of september? >> is that my man? is that you, bill? >> yeah, that is me here, bud. >> welcome back. i missed you. obviously, oil notwithstanding, i thought the movement in the bond market was fascinating.

that's the biggest one-day down move i've seen in quite some time. i've been a bond bull. i think rates are still headed significantly lower, but this move in the bond market today can't be discounted. so, i think you've got a couple more days of weakness there. obviously, the dollar strength is something to look at as well. the equity markets may not have been today. >> what's amazing about what he just said, guy, is the 10-year's at 2.4%. >> listen, mcc, 100%, no question. but you have to admit, that was a pretty large move today in the bond market. >> yeah, agreed. agreed. >> michael, do you see the dollar continuing higher here? what's going to push it, because that has taken a toll here on gold and oil and some of the other commodities here. >> i don't think there's any question the dollar continues to head higher simply because the euro and the yen are headed lower. we've got central banks that are on a very different cycle. the fed is starting to wind up the most aggressive part of its policy, whereas you've got the ecb still accelerating and you've got the bank of japan continuing to do quantitative easing on a much bigger scale

than even we were doing. so, what's to hold the dollar down? >> nathan, i'm hearing so much more about this ecb meeting on thursday. >> i know. >> instead of -- >> our own jobs report. >> -- the employment report on friday, which normally, that would never be the case. are we so dependent on seeing europe do something to weaken that euro? >> you know something, michelle, 500 million people in an economic unit will do that to you. they'll get your attention sometime. you've got to remember, the kansas city meeting, which takes place in jackson hole, which is a really smart thing for the kansas city governors to do, draghi came out and said, oh, i'm going to do whatever it takes. let's remember, angela merkel said, i think he's been overinterpreted. in other words, we're going to go back in the back room, we're going to have a little discussion about this. i think global demand is down, and you can thank europe for that and you can thank the raising of taxes in japan for that. and the dollar is strong. it's going to stay strong. >> you're talking about oil right now when you say -- >> i'm talking about everything. >> really? >> gold. get rid of your gold for a while. gold is going nowhere. and i think rates, when we get to see a 2.6 to a 2.8 on the

10-year treasury, i would actually start going long, because i don't think we can go out and forget all this terminal rate stuff and where the fed rate's going. i don't think we can see rates go much higher before we're going to start to see the fed go, gosh, we can't really raise rates nearly as much as we thought. >> i think there's something to your point on the stock markets in the u.s. i think there is a sense that the u.s. has the best house in a kbad neighborhood. if you think about europe, china. reports out today that the chinese commodities market is weakening dramatically. obviously, there's always a lot of skepticism as well about their gdp numbers that are officially reported, that things might be much weaker than they seem, or at least they're being reported. i think the u.s. stock markets, we've seen relatively low volatility. real volatility as well as implied in the vix for a period of time now. it continues on. and the feeling is, people don't have a better place to put their money in terms of another asset class, and they're going to stick with u.s. stocks for a while. >> but i think we need to be careful, because i think what angela merkel was really kind of

taking draghi to the woodshed on was not monetary policy but fiscal policy. his notion that they needed to kind of retreat on some of the austerity. so, i think if they get more engaged on the monetary policy end, you can still see european stocks take off. >> guy adami, i have a theory that i'm going to put out there. >> go! >> that this bull move in the stock market continues until nasdaq 5,000. >> wow. >> then -- and we're not that far away. >> you know, bill, it's not a bad theory. i mean, why not? there's no exhaustion to me on the buy side in terms of the equity market. my theory has been, and i like your theory, but the russell, the iwm, i thought we made a bit of a double top around that 1.21 level and i thought it would break down through 1.28. it held. it is imperative, if you're bullish, in my opinion, for the iwm to get above that 1.21 level. get above there, and i think this cycle of bullishness continues for the equity markets. so, that's my bush peak. >> even if you're calling the

bond market continues here. >> yeah, exactly. >> you know, they both work, you know. and i'm still sort of in the global deflation camp. i don't know if this oil move is a supply thing or a demand thing. there are people on both sides of the equation. i think rates are headed a lot lower here in the u.s. >> so interesting. so, he was saying he would go long at 2.6% on the 10-year. do you have a thought on that? >> are you asking me, mcc? i don't even know if it gets there, frankly. i mean, we're, what, 2.41 now? i'd be very surprised if it made that move. i'm thinking we're trending down towards 2%. you talk about it all the time, look at german yields. if you don't think we can go lower, just take a look at germany. >> and guy, we'd better not get to 2%, because that means europe is in the toilet. and what i think's going to happen is the bull ends right around the time that europe actually finally does their economic stimulus, and then at that point, when europe starts to get better, then we're all in trouble, and i think that's when

we'll have competition, that's when the dollar starts coming down, that's when we'll see rate hikes and that's when we'll have to contend with how strong are we when we have some competition. >> when europe gets better. god, seems like it's been years! >> has anybody thought about our jobs report on friday? let's remember we have that jobs report on friday. do we get another 200,000-plus jobs created? >> i think absolutely we get another 200,000-plus. you see it in all of the indicators of health coming from the private sector. i mean, we have really shifted into a higher gear with jobs gains. and i think it's easy to understand why. >> here's the problem, though. here's the problem with the jobs right now. you look at the jobs, look at housing affordability. we do an index. for renters, sentiment is down 25% this year. renters don't think they have any confidence at all to be able to afford a house. so, these cash buyers are nothing more than boomers who sell their house and buy in cash. it's not blackstone. it's your mother, it's your grandparents, it's your aunt and your uncle. >> and foreign. >> and foreign, absolutely, and foreign. but you put those all together, that's what's driving our

housing market. when the renter becomes a first-time buyer, we'll get the virtuous cycle where people actually start moving up, if millennials should decide they even want to own, least of all move up, and that's a whole other story. but i think until that happens, you'll see housing's up at a $150 billion minus to our economy every year because it's nowhere close to where it was before. >> we're assuming that owning a home is still aspirational for certain segments of our population. >> and it is. and it is. a homeowner -- >> i'm not so sure about that. >> a homeowner has a great degree of confidence about where this economy is. we did surveys, 1,000 people across the country. a homeowner is fat, dumb and happy. a renter not happy at all. >> but the wage gains have to come before you get the housing demand, and you've got to get the jobs gains. that's how you get the wage gains. >> for 15 bucks an hour -- >> a level of disbelief about the job strength that we've seen, the fact that unemployment is trending down? there's almost a disconnect between that and people's confidence. >> janet yellen has a disbelief.

she's come up with 16 different parameters to ignore the -- >> she's said there's a lot of slack in the labor market and we need to address that. >> and undoubtedly there is. that's why the wage gains haven't come yet. you need a year, year and a half of the jobs gains we've seen so far this year. you continue that on, then you get the wage gains, you get the wage gains, and i absolutely agree with you, every generation since we wanted a nicer cave than our parents have wanted their own place. >> you take a look at the take this job and shove it ratio, the quits ratio? when that moves up, i believe we'll get wage gain. when you walk into your boss and say, give me a raise and they say, i'd better because i don't want to train somebody to replace you. >> and that is getting better. truckers are missing earnings because they are having to raise wages. >> right. >> so, you're starting to see constraints in the labor market turn into wage gains. we're early innings. it's going to take -- everybody is so impatient. after the kind of recession we've had, it's going to take a while for this process to work out, but it will work out. >> guy adami, before we let you

go, how low does gold go before you buy it? >> if the dollar's going to keep going lower, it could go lower than people think. quickly, back to the job thing. we're all like nadia comaneci doing back hand springs. that's anemic. that is pathetic, given the amount of money that's been thrown at this problem. and i know, mcc, you agree with that. >> yeah, but she got 10s for those back flips. >> quick point on gold. i spoke with a commodities analyst today and said what are the interesting trades out there with all the weakness across the complex, and he said the only thing i would recommend right now is shorting gold. >> i agree. >> based on a feeling that we're seeing strength in the u.s. economy, so for good and traditional reasons, but still, that's the only thing he would do. >> also, it's 30% overvalued. >> right. >> all right, we've got it all teed up. hope you can stick around, everybody. guy, thank you. >> all right, bill! >> looking forward to seeing you and the gang tonight. see you later. >> 5:00 p.m. eastern time. they'll be talking about different warning sniigns in technology that you should be watching. dominic chu has a "market

flash." helenor troy, a consumer products company, is moving lower in the after-hours after cutting its 2015 earnings forecast, shares down by about 9%, just about 24,000 shares have traded. this is the company behind big brands, especially in hair care like bedhead, also vitalis, also braun products. they fell under the helen of troy label and they've cut the full year forecast for earnings, guys. back to you. >> thank you, dom. see you later here. storm cloud for apple? if you don't believe it, ask oscar winner jennifer lawrence, supermodel kate upton, baseball star justin verlander, just some of the names embroiled in this latest icloud photo scandal, giving apple and the celebrities headaches today. so, what's apple saying about all that? we have that story, coming up next. >> don't you want to ask them why they put naked pictures of themselves on the cloud? i mean, hello! they're not stars because they're smart. still ahead, norwegian cruise lines making waves today,

buying prestige cruises international for $3 billion. norwegian's ceo pulls into our harbor, just ahead. you're watching cnbc. we are first in business worldwide. greenline do for you?idely just take a closer look. it works how you want to work. with a fidelity investment professional... or managing your investments on your own. helping you find new ways to plan for retirement. and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review.

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apple's icloud isn't all blue skies today in the wake of a hacking scandal involving a-list actors and sports stars. >> it could be putting a bruise on one of apple's premier products as it gets ready to unveil two highly anticipated new products a week from today. julia boorstin has the latest on apple. >> the apple president investigated the posting of intimate photos of celebrities, including jennifer lawrence and kate upton to online chat room forchan and concluded that it didn't result from a breach in the apple system, including icloud or find my iphone. they say "we have discovered that certain celebrity accounts were kproemed by a very targeted attack on user names, passwords and security questions, a practice that's become all too often on the internet." apple says it's working with law enforcement to identify the criminals and urges users to use a strong password and enable two-step verification, which apple and others offer but don't require.

take a look at this demo of google's two-step authentication, which shows that a code is sent to a different device in addition to a password. together, they can block hacking software that repeatedly guesses passwords. what's next for jennifer lawrence and others who want to prosecute the hackers? we'll see what the fbi finds and whether or not we'll see prison sentences. in the meantime, consumers can expect more pressure to remember complicated passwords and to plug in those extra codes. michelle and bill, back over to you. >> it's all so confusing. julia, thank you. apple was certainly hoping to make a great deal of noise next week for consumers and investors around the unveiling of the new wearable watch. >> right. >> and the iphone 6 scheduled to come out. >> and recode is also reporting that the expected iwatch could have a price point of $400. so, we want to know, what do you think is a reasonable price? what has to be on that phone? would you pay that much -- on

that watch? go online to cnbc.com/vote right now and cast your vote. with us now for more on this is chris jiacha from thestreet.com. chris, good to have you here. your thoughts on the situation with apple. >> yeah, what's happening right now is, you spoknow, the icloud situation is an unfortunate situation right before the event, but it's not going to be a black eye on apple. we've seen this happen with other companies. it's unfortunate that it happened to celebrities that are very high-profile, but ultimately, i think apple moves away from this unscathed and consumers, they just have to be really vigilant about what they put on the web and they have to be really secure with their passwords, like apple said, the two-step identification process is important. so, if you're going to have an icloud account, you have to be really secure with what you have. >> either that or just keep your clothes on when you take a selfie, right? >> thank you. >> whatever. anybody wearing a watch here? >> i've got a watch. >> you got a watch? >> i got rid of it, because the question is going to be, where's the status go? all of a sudden, watches are going to be like, you know, forget it.

everybody's going to have the same $450 watch. >> are you going to buy a $400 iwatch? >> i have a hard enough time seeing things on my iphone. i don't see the attraction. >> with the smaller watch. >> me, too, but i'm slightly down on apple products on a personal level. they're great, they're sleek, they're cool, but they need a lot of maintenance the way they change the chargers all the time and the screens break and they're constantly upgraded. i don't know if i want another one. >> everybody here is so negative, but when you read the original reports about mobile phones and how many there would be in the world, everyone was wrong. everyone underestimated the penetration level by millions -- >> as a stock investor, i would like it. i'm just not sure i'm as happy with the product. >> being competitive, i had a goal, i'm going to get to that 10,000 steps. all of a sudden, i get to the elevate yorks i'm taking the stairs. so, things from a behavioral standpoint, michelle, absolutely -- >> so, why wouldn't the iwatch do that? >> and they will, absolutely. for the generation that likes to wear stuff and maybe the tiffany's crowd that's like, oh, i've got to show my stuff, this

is going to be a change for them. >> chris, you can tell us whether we have our head in the stand on the iwatch on this, but i'm wondering -- i mentioned this last hour -- the millennials, which presumably is going to be a big target audience for the iwatch, they don't buy watches. they don't wear these things anymore. they just look at their phone to see what time it is and so forth, right? >> you're absolutely right, and that's what's up to apple to get people to come out and actually buy watches. they've hired a lot of fashion experts. it's not just going to be your geeks and first adopters. they're going to make it something that's cool. they're going to appeal to women, they're going to appeal to men, they're going to appeal to the higher end crowd. >> what's it going to do, besides tell time for 400 bucks? >> for $400, you're probably going to be able to tell your fitness, you know, steps, health calories. it might actually even -- >> michelle, you might have to get rid of your fitbit. >> i like my fitbit. >> i know you like to wear it, even on air, but maybe an iwatch is going to be cooler. >> and we're conducting a realtime survey of our viewers, and i mean, it's going back and forth a little bit, but so far, the majority's saying, no, they

wouldn't buy a $400 iwatch. >> the thing about fitbit, they got rid of the device that had the watch on it and just kept the wrist watch that had just the information on it, and they didn't skip a beat. now, this is either brilliant pr, or guess what? those people who are using the fitbit also, for 60% of them, this is their watch already. they don't care about a watch. the watch is going to be a throw-in. it's going to be all the other stuff that's going to come along with it that's going to be what you sink your teeth into. >> what will ultimately make this successful is when it just goes ahead and does the whole dick tracy thing, for those old enough to get that -- >> you have to explain who that is to most people. >> exactly. >> google it. >> it actually hones your phone. >> right. that has to be the goal. and here's the other thing i have to wonder. when you think about the wearables market, which is this huge growth area for tech companies like apple, wouldn't you rather have kind of a cool watch with lots of functions than cool glasses or a scuba mask, which is kind of what it looks like to me? >> oh, you make a great point. a watch is more wearable than the glasses. >> of course.

so, maybe it becomes relatively attractive. knowing apple, they'll have a very sleek, cool design. it's just, the size is going to be key, right? you want it to be sizable enough to see stuff, but without having an append yij. >> chris, what about the iphone 6? >> the iphone 6 is going to be probably apple's biggest phone yet, both physically and in terms of how many they sale opening weekend. i'm expecting two phones, a 4.7-inch and a 5.5-inch. the 5.5-inch is key because apple's really pushing into china and the chinese consumer really wants that bigger phone and that's where apple needs to be. >> as do a lot of u.s. consumers who have waited to upgrade because they've been hoping for an icloud-connected device that will be as big as the android phones. >> do you think it's significant? it just occurred to me, they are introducing the iwatch at the same time they're bringing out the iphone 6? i mean, all by itself, as a stand-alone, maybe the iwatch wouldn't make as much noise out there, right? okay. i got crickets for that one. chris, thanks for joining us

today. appreciate it. >> thanks so much. let's send it to dominic chu for a quick "market flash." >> michelle, bill, this is what we've got. check out concur technologies. this stock is spiking about 16% in the after-hours on a "bloomberg report" that s.a.p. and oracle may be looking to buy the company, which develops travel and expense software. concur's got a market cap around, we'll call it 5.5, $5.7 billion. for golf fans out there, if you were watching any of the deutsche bank championships this past weekend, bill, you may have seen concur technologies there, a sponsor of australian golfer jason day. back over to you guys. >> yes, indeed. and poor billy horschel. we'll talk about that some other time. thank you, dom. if you thought you missed the home-buying and selling season, you may have to rethink that strategy. when we come back, drops in listing prices and more homes selling below list may heat up a traditionally cold part of the market. we'll talk about that coming up here. and the robots are coming, right here, but not your run of

the mill robots. these are german-killing robots. >> oh, boy. >> only here on the "closing bell." back after this. ♪ aflac! and a gentle wavelike motion... aahhh- ahhhhhh. liberate your spine, ahhh-ahhhhhh aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep. find out how fast aflac can pay you, at aflac.com.

anyone who has ever sold a home or looked to buy one knows full well that fall is not the hot season for home sales. >> but is that conventional wisdom susceptible to changing market conditions this year? diana olick has new data that may call all of this into question.

diana? >> well, michelle, it just may be. as you said, autumn is usually the start of the slow season in housing, but some unusual factors this year could juice the numbers, at least according to redfin, which is a real estate brokerage. all right, that said, it tracked the number of homes that sold above list price in july and found that it fell 7 percentage points from 27% to 20% from a year ago. sellers are dropping their prices. now to the where. where sales heat up and cool off most in fall. trulia, a real estate sales site, also tracks search activity. now, it found among the top 100 local markets, searches in new england stayed strong in the fall, massachusetts especially, also new york, and then in the west, much of california and seattle. trulia's chief economist, jed cocoa, says that's because it's dry and cool in heez regions, the nicest time of year to be out. also, gary, indiana, slipped into the top ten. he had zero explanation for that, nor do i. now, searches fall off most in florida, south carolina, phoenix

and austin. most of these markets see their worst weather in the fall. i don't really like the weather excuse either, but that's how the numbers seem to track. so, could even slower markets see an unseasonable surge? well, absolutely, they could, because there's more supply and prices are low and mortgage rates are low. let's not forget about the first-time buyer, who's supposed to be strongest in the fall. first-time buyers had a really rough time getting back into this market. bill and michelle? >> all right, diana. stay there. let's talk about this. i mean, we've broken all kinds of traditions in the stock market in this crazy period we're in right now of these low interest rates. do you think it's possible we do the same thing in the housing market here? >> i don't know. i think there's still a fundamental barrier to moving in the fall, and that's families with kids. >> right, right. >> you don't want to move your kid at the beginning of the school year. you want to do it in the summer. >> historically, though, the three months in the fall have only beat the spring, which is a hot time, by about a half a percent. so, we're not -- and this is going back to 1999.

>> so it's not a huge differential. >> absolutely, it's not a huge differential. when we see rates go down to 2.3% on the 10-year treasury, that means you ought to be looking at mortgage rates anywhere from 4.2, 4.3, 4.4%. all kinds of deals should be out there. anything should be spurring and creating the perfect storm for a good housing market in the fall. it would be declining prices at the point where people were looking and declining interest rates. >> well, no, i agree. that's the kind of thing i continue to find curious. interest rates are still relatively attractive on mortgages. and yet, people are not jumping in. i wonder if people feel so burned -- >> it's not the rate, kate. it is not the rate, it's the availability. that's what i hear from everyone. >> exactly right. >> the rates go lower and it doesn't move the markets, it doesn't move the mortgage applications, and that's because it's about getting the down payment and getting the credit. >> you're saying it's still very difficult to get a mortgage, diana? >> absolutely still difficult. we talk about it loosening up a little bit, banks wanting to get more business out there, but bottom line, people need to have that exact debt-to-income ratio that the banks are accepting

right now. they can't have too much debt, and young people still have too much debt or they just can't say enough for the down payment, why? because rents are so high. >> joining us now is danny baab from the baab group. you're not convinced that the fall season would be good for housing. why? >> no. for a lot of reasons. first, historically, it's not a good time, as we know. it's been discussed. >> right. >> also, millennials are making up a large portion of first-time home buyers and they're delaying purchasing for a number of reasons. they don't have the same opinion about home ownership, they have job uncertainty, they're not sure where they want to live, and they've also largely been priced out of the market. we have numbers 12% off the national peak from the prebubble period. it's just too expensive. and even though rates are low, and you know, i agree that overall it's still very cheap to buy, and in many cases, cheaper to buy than rent, psychologically, a person may feel as if something's too expensive, rates went up 0.5%, 0.25%, and it may make only $100 difference in payment, but someone on the fence about buying, it can make a big

difference in the outcome. >> diana, let's try this on for size. we did a survey of 1,000 people who are homeowners, and they are happier where they are than ever before. how about this, they don't need to move up anymore. they don't need to keep up with the joneses and they don't need to sell. they're very happy where they are. >> because they're renovating. you've seen renovations surge. you've also seen people who are under water on their mortgages or don't want to lose the low refinance rate, a 2.5% rate on a 30-year fixed when we were at record-low rates. and they don't want the hassle of having to spend that extra money on brokers' fees, moving fees and then renovating a newer house. they're happy where they are because it's safe. >> and generations saddled with student debt. they already have a monthly payment they have to make. >> and i think there's a psychological dampening effect in paying rent. you feel like you're not investing for the long term, you're throwing money away. i met a girl in brooklyn, new york, who is getting interested

in the tiny homes movement. diana, have you heard on that? >> we've done lots of stories on tiny homes. go to cnbc.com and you can find the stories on the tiny homes. it's a big movement, but it started out more in the green movement space. now it's moving into the more economical space. i've seen some of these houses. they're amazing with the technology, what they can do inside to make a house that's, you know, one tiny room -- >> water, sewage and so on. >> everything. they've got solar panels. serious, go online, look at these stories. good stuff. >> the one thing about the renting versus buying, i know you get tired of throwing your money away on rent. renting gives you flexibility. >> absolutely. >> you lose your job, you can downsize immediately. you're not trapped in a house. and if you're uncertain about your job, that flexibility really can be very priceless and comforting. >> i still think people want a house -- >> we also have a large portion of investors still paying cash in this market. so, we have 38% of homes being purchased with cash. so, when these investors realize that their returns are not what they were the last couple of years, and they start slowing down their investment into the

market, i think we'll start to see inventory go up, prices go down a bit. that would be overall positive for the market, not great for fall, like the redfin report suggests, but i think overall that's positive for the market as we can find new equilibrium. >> got to go. michael's trying to make a point. >> i think it's really clear, and john stump said it last week -- >> ceo of wells fargo. >> the ceo of wells fargo. the reason why we have to have 40% of the market cash buyers is people cannot get mortgages. the reason they can't get mortgages is that the government is putting back any loan that goes bad to the originator. >> if you can't afford a mortgage, how are you going to come up with cash? >> it's simpler than that. they will not make a loan that has any chance of going bad, because fannie mae and ginnie mae have a free put back to the originator. until the government clarifies the regulatory situation, until they say, if you underwrite to this standard, if the loan goes bad, we'll keep it, until you get that kind of clarity, you're not going to make loans to these first-time buyers. >> very good point. >> that was barney frank's

intention, though, with that whole thing, dodd/frank. >> exactly. >> thank you, ladies. diana, dani, thank you for joining us. the s.o.s. was coming from the cruise industry just a year ago after several vacations were lost at sea, causing pr nightmares. remember that? now that's seemingly behind us. >> 17 new cruise ships will enter the seas in the next two years, adding more than $3 billion in revenue to the industry. and in the middle of it all, the ceo of norwegian cruise lines joins us next to talk about his latest acquisition. $3 billion he's spending. we'll also chat about the state of the industry. dad: he's our broker. he helps looks after all our money. kid: do you pay him? dad: of course. kid: how much? dad: i don't know exactly. kid: what if you're not happy? does he have to pay you back? dad: nope. kid: why not? dad: it doesn't work that way. kid: why not? vo: are you asking enough questions about the way your wealth is managed?

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back here with dominic chu for this quick "market flash." dom? >> bill and michelle, what we're watching is cdw stock, moving lower slightly on the company commencing a public offering of 15 million shares of stock. this is a secondary stock offering. all the shares being sold by existing stockholders. cdw's a company that provides i.t. solutions, you know, the network hardware and software, a solutions company for businesses and government, basically. the stock is currently trading, you can see there, just down by about 1.25%, and a light trade, only about 6,000-some shares

have traded in the after-hours. back over to you. >> thank you, sir. see you later. meantime, this was a merger tuesday. norwegian cruise lines agreeing to buy privately owned prestige cruises international. it's a $3 billion deal, essentially. prestige is the parent of oceana and regent seven seas cruises. >> joining us in a first on cnbc interview is president and ceo kevin sheehan joining us here. hey, it's great to have you here. >> welcome. >> we want to talk about your deal -- >> thanks so much. >> it is exciting. but first, it wasn't that long ago when your industry just couldn't seem to get out of its own way. there were so many disasters on the high seas with, you know, electrical systems burning out, people have to camp out on the, you know, out on -- >> the decks. >> -- the deck. that's the word i couldn't remember. >> yes, that's correct. >> decks. >> have you gotten past that? is there anything else left that we might see that again, or has the industry finally managed to get past those issues? >> yeah, at the end of the day, this is a very safe industry.

if you look at the number of people that take cruises in a given year and you look at an isolated situation in a microcosm, you're going to, you know, come up with a different view. the consumer has a short memory, and they see the phenomenal value of a cruise vacation. and many, many millions of people every year take cruises and have a great experience and keep coming back. >> let me ask you about this deal. i was intrigued. the company you're buying was created, brought together by apollo, which owned it, took it private and created this entity called prestige. apollo owns 20% of you. so, is this a deal that's just been engineered by one of your major shareholders, or is there truly a strategic reason why you would be buying prestige right now? >> yeah, that's a great question. actually, when i approached apollo at the start of this, they thought it was going to be too complicated because of the

reasons you just mentioned. but once prestige had filed an s-1, and once that was out in the public, this is something i've been considering for five years. we started to have a conversation a long time ago, and then because of all of the work that we were doing at norwegian and launching new ships and taking our company public just about two years ago, we got off track. but once they filed that s-1, it showed me an opportunity to restart that conversation, and it's a very, very complimentary transaction for our company. >> so, it was your idea. i would have guessed it was theirs. what's the end game here? you're going to have 40,000 berths, as they're called. royal caribbean has 80,000. do you aspire to that some day? where are you going with this? >> at norwegian, you know, we have no sight on market share. there's nothing to be gained in this industry by pushing to grow

market share. so, really, what we have tried to do is when i came into the company six years ago is rejig the company, get it back on the track of what we've been doing for 24 consecutive quarters of consistent, orderly growth in ebitda every quarter. we've improved our margins by 1,500 basis points over the same period of time. so, the company has done phenomenally well, and it's been confirmed in the market with our ipo. that was at $19 just 18 or 19 months ago. so, the next logical step for us was to diversify the offerings that we have. we are a contemporary cruise line that is moving towards the premium. and now we had the opportunity to marry that with two other cruise lines that have nothing in the same space as us. there's a luxury line and an upper premium category. >> wow, and that will just improve margins, you would think at some point. mr. sheehan, thank you for joining us. appreciate it so much.

good luck. >> all right. the fight over the dollar continues. the fight over the dollar continues. no, not our legal tender, but the discount chain family dollar, which today received a new takeover bid from dollar general, topping that by a rival, dollar tree. can you keep that straight? >> i'm there. >> it was a popular story on cnbc.com today. coming up next, we're going to see if it was popular enough to crack the "hot list," as we call it. meantime, this is a great story. we've seen robots clean floors, serve coffee, but have you ever seen one that kills germs? stay tuned. you will meet maurice, the german-zapping robot who's on the move to take out hard-to-kill viruses in places like hospitals. stay tuned. when you compare the top speed of dsl from the phone company

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joe. minor damage, or major disaster, when you need us most, we're there. state farm. we're a force of nature, too. ♪ time for the "hot list," checking on the day's hottest stories, and we're seeing data that our friend, jeff cox, is leading the charge on cnbc.com so far. >> joining us with what's topping our website's "hot list," cnbc.com managing editor allen wastler. so, jeff is taking on what? >> jeff has two on the "hot list" today. he's one of our senior editors. he's scored two. right now he's got a great term in his headline, hoard money. the st. louis fed came out with a paper purporting to solve the mystery among economists that we're pumping all this money into the economy, why not more inflation? they say it's because the average person is hoarding money more and more and this is having

a dampening effect. people are loving that story. he's got the second one, too. he got a hold of a note that dick bove, the notes banking analyst, sent out to his clients, basically predicting that he sees a big mortgage crisis by the end of the year. that's because the fed has stopped buying mortgage-backed securities. it's toning that down. also, fannie and freddie might be wound down by congress. he thinks that means there will be a big demand drop in the mortgage market. finally, number three, this one's been pulling for us all day. 64,000 people have already read the piece. it's about the home depot hack. they came out saying they believe home depot was hacked just like target. it's being investigated right now, but people are just diving into that story for a lot of reasons, i imagine. and they're personal. anyway, those are my top three for you guys. >> who hasn't been hacked? >> yeah. >> everybody. >> no, i'm serious. >> that's a key question. >> i've got a routine now of what websites i have to go and change my passwords on.

>> as long as the consumer never ends up paying 50 bucks, it doesn't end up being an issue for most people. >> allen wastler, thank you very much. see you later. forget about millennials, is it time to start paying attention to generation "z," the one behind them? they could have a big impact on the workplace of the future, how so? that's coming up. >> bless you, kate. >> god bless you, kate! tomorrow, tune in as bill and i talk to legendary investor jack bogle on his take for investing for the fall. who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ so the magic shell went back to being a...shell. get live squawks right in your trading platform with thinkorswim from td ameritrade.

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when you mention generation "z," most people might think you're talking about zombies, but it turns out, they are people who are between the ages of 16 and 20, and their numbers are on the rise. >> what are we going to call the next generation? >> we've run out of letters, you're right! >> ranstadt, millennial branding consultants have been teamed up for a study comparing gen "y" and gen "z." and wous with us is the author of "promote yourself," which he's doing a good job of doing today. dan, what are we finding about their views of their job prospects and, you know, their outlook for the economy and so

forth? i mean, what's the difference between "y" and "z" right now? >> well, what we've found -- and again, this is just a prediction, but gen "z" could be more loyal than gen "y." when asked about how manygef-y? >> gen z might be more loyal. gef-z says one fewer. they're also more entrepreneurial by about 6% and companies again as with gen-y need to embrace an entrepreneurial type culture. the lop leadership trait they're looking for is honesty. they're looking for an authentic work place, gen-z wants to become involved in these discussions even though they're not in the board room. >> i got three, which generation there across the gen-y and gef-z. >> do you see a difference in the outlooks there? >> i have a couple gen-ys.

they would not be looking to stay with one company forever. they're renters, you know, they don't want to stay in one place. >> i think the key, when did they go if college? if they were in college post--2008. >> the crisis. >> if they saw seniors graduating without job, i think that's sort of the transformational experience that has made gen-z much more oriented towards loyalty and entrepreneurialship so you can control more of your destiny. >> gen-z are much more like their parents remember they want face-to-face communication. the next thing that comes to mind is are you loyal? can i depend on you? whereas the next generation, their loyalty will be right here. >> i think the practicing mattism has been a lagging indicator. i think over the years, people applying for internships, or what not, they have been conscious considering we were in this post--2008 business.

i think now reality is starting to hit home to your point. >> dan, what about gen-y? are we overgeneralizing to say they are a group that don't feel allegiance to any particular company? they'll go wherever the opportunity blows them? >> absolutely. yeah, in the past three years, millennials spend about two years with the company and if you compare that to boomers, it's about seven years. the two interesting things about this study that we found, though, they think is fascinating, every generation negatively stereo types the upcoming generation so we found that generation y thinks that generation z is lady, boomers and gen-xers felt the same about gen-ys, that was interesting. they want face time over everything else, i think by human instinct, people don't want to be involved in confinement either.

>> thanks. >> i think nathan's point about honesty, that face-to-face communication, you really want too feel secure. that's what they want and security comes from a personal connection. >> who doesn't want honesty? >> thank you, dan, millennial branding there. changing of the guards. >> maybe a put. forget about the terminator and robbie the robot. there is a new robot if town. his name is maurice, he brings his germ snapping ways here to fight disease. we're going to learn how next on "closing bell.". >> in the movie we are showing right now. nvestor you can be. you want to cut through the noise .

the robot craze is hitting america by storm and in a big way. it's also cleaning up the health care sector. meet maur ice, right here. take a shot. he's the latest germ snapping ro bomb. robots leak maurice have disinfected more than one.5 million hospital rooms alone. it has done norovirus and ebola. >> we talk about all things maurice. what is this going to do that

they don't do in hops to zap the germs. >> right now they're using chemicals, usually bleach and things have been around. pence a demo one is a bulb. when you pulse it. it puts out light. it's 25,000 times brighter than sunlight. it enable tos the viruses and spores that would otherwise make you sick. >> that's impressive. hospitals are buying them these. how much are these? >> these are about $104,000. for parent, it's about a $day. for the hospital, their payback on investment is about four-and-a-half months, pretty good payback from their point of view. >> is it early? what about the cost of maintenance and repairs. >> that's all includied if that price. our focus is getting these into the hospitals. it's in about 250 now. we want to be in all of them. >> is there a market for

germophobes? have that's one of our common requests. absolutely. >> this is a great battle against staph infection. i had a day to be in the hospital for a day i didn't want to be. let me tell you something, antibiotics, people are staying in hospital stays longer than they need to. >> this thing, i think you got a good thing. >> how do you know when the goes off? >> on the front of this device, there are sensors. if it were operating in the hospital, it would stop in the presence of somebodyt. in the hospital, here in new york city, the infection rates, they go down 50 to 80% when they get you to use the device. >> what happens with the ebola

outbreak? >> there is a organization in sierra leone we have been trying to get the robots over there. >> is your company the only company that uses this? >> we are the one so intent on getting rid of the infections. >> so to go back to the ebola questions, what hurdles are you running into? >> in affect there is a number of things. they have infrastructure issues in terms of how they orient their hospitals anyway. ebola, unlike a lot of the infections here in the united states, it's very easy for us to destroy. it takes about 90 seconds. >> does the insfra structure lack electricity? >> if you can get them to the site, you need electricity. >> maurice, thank you for joining us. >> thank you. thank you, guys, good job today. >> we have "fast money" coming

in the next next few seconds, melissa lee, what do you have in we had a robot. top that. >> i need one of those, have you seen the characters i deal with? we have an analyst some might call blasphemous. he is the most bearish with mobileeye. he has a neutral rating on the stock. the street is too bullish. >> you got it. >> fast money starts right now from fork city's time's square, i'm melissa lee, sim seymour, dan nathan and guy adam my are your traders. we could be seeing warning signs for apple for the rest of the sector. major wraek weakness, intel, micron, qualcomm, sandisc, the s&p 500 continues to hit new highs. >> the qualcomm move is pretty scary. that's a stock that went from 82