nba story. thank you for your flexibility. >> thank you very much, you the viewer and listener, for joining us today. "closing bell" is next. hope to see you same time tomorrow. welcome to "the closing bell." reunited. >> welcome back. to both of us, i guess. >> yeah. >> we are watching a market struggling today to be in the green, to start this week off even though the s&p started -- finished last week in all-time high territory and keeping an eye on that. a number of stories to watch today. corporate tax inversions front and center in washington today. treasury secretary jack lew to pass legislation to stop companies from jumping abroad to take advantage of lower tax

rates. but also, promising that the administration will take action without congress if need be. >> we'll ask a top house democrat out of maryland about all this and will there be comprehensive tax reform to encourage companies to stay put in this company. >> very much a thorny issue. still with us by now. this time tomorrow theoretically we will know what apple's new products are being introduced and it is at the iphone 6? is it the iwatch? something else their sleeve? payment system? were they a hit with public and investors? today a closer look at what apple needs to do to impress shareholders and customers and the bar is set very high. >> yes. let's start with that sector. it's the nasdaq out performing fractionally lower off by a point or two. the s&p 500 is a weak link down

and hardly call it a link. that's the broad market index. down almost half a percent today and something to did with the weakness across brept crude and the metals, as well. the blue chips off a quarter of 1% and just below 17,100 on session. >> much more on the markets in a moment. we have breaking news. steve liesman on consumer credit number numbers. >> they're surging. biggest jump since 2011. one of the biggest jumps of this century actually. got to go back to 2001 to find the third biggest one. consumer credit hitting a record 3.2 trillion. revolving credit up 7.4%. guys, this is an economic double-edged sword. one hand, consumers have the confidence to borrow. and maybe more jobs out there allows them to borrow. on the other hand in the wake of

the financial crisis, maybe we have a little fear of debt throughout and level. bill, back to you. >> steve, can i just jump in real quick? >> sure. >> tell us the revolving and non-revolving parts of this. is this just an auto loan in the economy? >> it's a big chunk of it, kelly. revolving -- non-revolving up 10.6. revolving up and total of 9.7% and both up pretty healthy amounts. >> yeah. >> what do you think the fed will think of this? >> i think the fed wants to see banks lending and making loans to good credits and, you know, i had a bunch of talk with the auto guys and feel like auto loans are paid off first and paid off even before the term and think some of the concern about the amount of auto loans out there was not well placed. these are the guys making the loans and the fed will watch this and watch it carefully, bill. >> all right. very interesting. thank you, steve. >> sure. >> on consumer credit numbers

there. joining us on the closing bell exchange to talk about this, winny suns, jeff reeves, mark lashuni, earl landisman and kenny pulcari. kenny p, kind of a quiet day? >> yeah. a relatively quiet day. actually, not necessarily so surprised. right? like you said at the beginning of the show, jack lew talking about this event. the road show under way. so therefore you have kind of a lot of other things going on and nothing so specific of macro data to drive the markets one way or the other so this kind of consolidation. the market's off. we are not off. like anything big or anything to get nervous. up 30 points on the dow. what's the big deal? more consolidation than it is kind of nervousness and feels like at the moment. >> mark, we did see pressure on markets this afternoon.

the san francisco fed put out a paper basically saying the fed's own forecast of when to raise rates or start to tighten policy ahead of the general public, most economists think. that was a couple of hours ago and off the lows of the session and wonder to tie it together with the consumer credit numbers we just got in terms of fed policy is from here. >> it's interesting. inside that consumer credit number shows a huge demand for auto loans and car sales, auto sales running at a 17.5 million unit analyzed run rate, near all-time highs. but in addition to that, last week a personal income and spending number of the savings rate from 4.5% to 5.7%. all in in this week's retail sales number leads the fed to believe that the consumers' balance sheet is largely healed. and while debt deleveraging is not necessarily over, seems as though the consumer's found an

equilibrium of spending, taking on credit and same time not necessarily destroying their balance sheet because the savings rate is going up. that should leave the fed to have some confidence in being able to lift interest rates without the worry of choking off consumer behavior. >> i note in the notes here on our guests that we have a disagreement on the markets here. gasp. jeff reeves, you say -- and let me just point out. the s&p sitting right at 2,000 here. you say you wouldn't be surprised to see the s&p finish the year at around 2,100 and ari, you're not surprised to see 1,700 by the end of the year. so let's talk about that. jeff reeves, make your case to the upside here. >> well, i mean, i don't think really need to make a compelling case aside from the narrative we have seen thus far. the unemployment rate down to 6.1. there's mixed jobs news, one step forward, two steps back and

the story for five years and not all blue skies ahead and a slog and i think over time it continues to improve. i think third quarter earnings will be really good. the snap back of q2 gdp is growth through the end of the year, a good holiday season. i don't see any reason why the narrative thus far is upset. i think people thinking we're due for a correction just because we're dubai radioshack at the bottom or short tesla at the top because they feel like the trend has to change. i don't think there's a schedule for these things. >> let's ask about that. are you buying radioshack, as we well, here? >> never bought radioshack or anything there. i think the market right now is in a channel where, you know, i could see in the first quarter of '15 getting to 2300 and i could see at some point, i don't expect it to be the end of the year, but possibly in october the market touching 1700. market's been around this 2000

level now for 10, 11 trading days. i think it is putting in a short-term top. i think you see a correction down to 1930 range first. maybe try to rally them a little. you could see six weeks making lower lows. the trend is your friend. it is a market straight up. >> what would be the catalyst for that? for a break of 300 points of on the s&p, a couple of thousand or something on the dow? i think more than a scotland no vote, correct? >> i think what would happen is disappointing economic data and/or geo political issue for the 1850, 1900 range and so long since the markets had to handle adversity and the people look at the profits of 5 1/2 years and say, you know, maybe discretion's the better part of valor and so 150-point move could be a 300-point move on the s&p just like that. >> winny, if you wanted to make a case to the downside here,

look at what's happening with brent crude, look at the price of iron ore and the chinese numbers. global growth picture is far from encouraging at this point. >> absolutely right. there is concerns on the global front. i mean, on the u.s. front, things look good and we have good news coming in. you see the information out with uk and scotland and those are concerning times. these are things that we they're benefiting us and may not be a benefit on the global scale. >> all right, folks. we have to go at this point. appreciate it. you're get applause from the trading floor, as well. i don't know if you can hear that. >> who was trying to break in there? >> i was trying to say that i think that kind of talking about global fears or we'll get a geopolitical problem, we have had that thus far. i think -- >> absolutely. >> seeing something new already. you know? >> although that could be called complacenc

complacency, too. >> thank you. >> heading towards the close. 45 minutes left in the trading session with the dow down 32. >> now also focusing on ali baba trying to sell investors on a big ipo. question is whether the valuation being bandied about is justified. that's next. apple, widely expected to introduce the iphone 6 today and maybe an iwatch among other things. coming up, a look at what apple has to do to impress consumers and invest tofrs, as well. a new study finds 14% of americans own individual stocks. those who do have seen their net wealth soar. are americans making a big mistake not in the market? we want the know what you think and what you're buying now. your chance to vote later on "the closing bell."

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all right. we have breaking news on new eu sanctions against russia. >> michelle joins us with the details. >> that is the news. there are new sanctions against russia. we weren't sure if they were going to happen because there have been some uncertainties. some countries wanted to wait and see the outcome of the cease-fire or rules about what to do with the sanctions and revoking them if the cease-fire against russia -- i mean between russia and ukraine holds and appears according to reuters the eu formally adopted new sanctions against russia over ukraine. this according to a source and this is once again reuters reported to put rush why's top oil producers and pipeline operators on a list of companies that were not able to lift --

that would not be able to raise money in the capital markets in the european union. the eu adopting the sanctions. there were doubts of whether or not that would happen but it's absolutely happening. back to you. >> all right. thank you. we are watching markets here and not showing much of a reaction to that news as of yet. meantime, alibaba's ipo set to be the largest ever. >> the chinese giant is pitching that offering to investors in new york. kayla has the buzz behind the ipo roadshow there at the waldo waldorf. >> reporter: the buzz is palpable. the top executives left the waldorf astoria a short time ago following a presentation that saw some 800 investors packed into multiple overflow rooms as the company laid out the proposition for the ipo and its vision for the future. brady dougan had opening remarks

and a video of merchants that sell their products on the platform and nearly hour-long q&a. corporate governance, acquisition and so much control in the top executives. that was a concern and most investors i spoke to after they saw the presentation, they walked away and they felt much better. take a listen. >> jack is obviously quite unique, extremely intelligent, great vision and a capacity to execute. as long as he can execute, i'm a big fan. >> reporter: of course, that investor was referencing jack mah, the founder of alibaba in 1999. i would say he's executing okay. tripling profit year over year. 70% margins. the company is mammoth investors said they'd never seen anything like this scale of the event and the company. guys, i heard more than one

comparison of jack mah to steve jobs. back the you. >> kayla, that's exactly the question is when you're investing, do you want to be so tied in this founder? stay with us. we want to ask whether you should be a buyer here. >> let's bring in brian hamilton. jack's one thing and then you have got the regulatory environmental questionable in china. we had one technology investor with us on friday saying he wouldn't buy shares right now because he doesn't trust the numbers coming from this chinese company. what do you think, brian? >> i don't agree at all, bill. good point. there are two numbers here that are relevant. a 50% sales growth rate and a 44% net profit margin. we have not seen that since microsoft went out. it's amazing. and even if you look at the multiples, i think it's a fair buy. i don't like their name.

$160 billion company with the name alibaba. >> why don't you like -- what's wrong with the name? >> you got used to google. >> it is too hip more me. okay? seriously, this company's got positive cash flow. net profits. good growth. big market. >> bill, raise the question of whether you can trust the numbers. you have said the numbers are amazing and why people are raising an eyebrow saying maybe too amazing. >> here's the details. there's an american audit firm. if you're buying alibaba a red flag, not a deal killer, no way, but you are buying the regulatory environment of china evolving and developing as you know. that's a bit of a red flag. but when i see the multiples, profit and sales, i'm a buyer of the stock. where it is right now. now, one thing, guys, i'm on the fence on the valuation a little bit. this is $160 billion valuation. >> right. >> if the pre-ipo price goes way

up i would be an it ll bit more concerned. >> kayla, did you find any skeptics today? >> reporter: there were but, bill, i think the people are used to investing in facebook and names like amazon which do make money but nothing compared to the type of money that alibaba makes and there was a question that jack ma fielded in today's event about government intervention and how much of a regulatory cloud in china hangs over alibaba saying -- i'm paraphrasing and basically i work with the government and not married to the government and i think also the fact that alibaba is going public here in the u.s. means to essentially be governed by the s.e.c. a u.s. audit firm, as well. the numbers smell better on this side of the pond than to go public in hong kong and raise more questions about whether you can trust the numbers. >> all the same, i think because hong kong has stricter rules about share listings that drove them to new york in the first

place. >> i think there's a perception issue, as well. starting here in the united states, right, brian sni that's right, bill. >> is that all smoke and mirrors to say they're doing something in the u.s. where, in fact, it's because we were more lenient with their shareholder structure and priorities. >> the chinese ipo market is a little bit volatile. when you look at these numbers compared to some of the other companies going out right now, this is a winner at its current valuation. i would watch the value as the company goes public. that's the key. but a 44% net profit margin, holy crow. >> kayla? >> reporter: the resounding sentiment out of the room is we are fine with the governing structure, regulatory structure and with the numbers we are seeing as long as the company continues to grow and continues to execute. as soon as any company with a dual share structure,

controlling share hoeholder, comcast, liberty, we know a lot of companies structured like this, but as soon as those companies stopped executing, shareholders will punish them. as they continue to execute, people will buy the stock. >> that's exactly it. you hit the nail on the head. people are fine with it as long as they're putting up the numbers as brian said he sees. >> right, right. >> when that music stops, bill, things could be interesting. >> i have a new expression. holy crow. i like that one. very good. thank you, brian. >> thank you, kayla. dow off 24 still looking for more response to the sanctions eu is putting on russian companies. know soog it. s&p is underperforming today off almost 7 on the 2000 mark. nasdaq in the green by about 3. >> general electric with a big deal they cooked up this morning and announced. not a surprise. wall street is shrugging the shoulders on this particular deal with ge. why does that stock continue to langui languish? we'll ask the pros ahead. despite the mega hit, the summer box office has been a

bust. it's off 14% from last year. what are theaters doing to get people back in their seats? c imax ceo is here to lay out his plans. we'll be right back. she's still the one for you. and cialis for daily use helps you be ready anytime the moment is right. cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your

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s&p down 7. coming off of that all-time high it hit last week and remarking how the s&p is hugging the 2000 level. >> while you were away, i think it was the friday before last, i think we sat on that 2000-mark probably 30 or 40 minutes. >> it is enamored with that number. >> it was incredible. we are back there as you mentioned. and courtney regan watching the movers for us today. >> that's right. s&p may not be moving much but stocks are. twitter higher on news testing a buy button in some tweets for mobile user to buy from a weet. boeing on ryanair agreed to buy for $11 billion with the option for another 100 for the same amount. and a tough day for u.s. automakers. morgan stanley downgrading ford and gm. saying they were pulling forward demand from the future. we end with general electric

selling to electrolux. >> thank you. part of the deal is they'll keep the ge name on the appliances. like it is going away but changing ownership here. let's talk about this deal, what it means for general electric down the road and why the market seems unimpressed. bring in christopher glen and david nelson. christopher, you like this? i mean, they shopped it around. they were going to sell it before the financial crash. they took it off the market. now they have finally got a deal. is this a good deal for them or not? >> well, i think symbolically it's momentous. been in the business for 100 years and invented many of the household appliances we use today. economically, it's very, very small. you take their four largest investal segments, each of those

generate profits that average over 15 times that generated by the appliances business so the other portfolio moves they've made recently adding and spinning off, those are much greater magnitude. >> all the same, david, why aren't the shares responding positivelied to or is that about some other concerns? >> i think he said it. it is such a small deal. this is a $262 billion company. selling a $3.3 billion division is hardly notable. yeah, they have a great price for it. looks like maybe 10% higher than people were expecting but i don't see how it moves the needle. i have a question for chris. it's like, you know, portfolio managers like myself hoping ge breaks themselves up for perhaps a decade and doing it slowly. they sold, of course, the parent company of this network nbc. now they sell this unit and they've been down sizing financial. is this the painfully slow process we have been hoping for?

>> well, i think this is actually the last -- yep. hello. i think this is the last of the major moves. can you hear me? >> yeah. we're fine. go ahead. we have a delay here is the problem. >> okay. so yeah. i think this is actually the last of the portfolio moves that ge has flagged for us and i don't really see anything else substantial. now, remember, the other deals are mid-2015 or later so those will, you know, really kind of remake the pie chart of the different profit streams. >> let's talk bigger picture then. jeff imel is ceo of ge since 2001. there have been certain mitigating circumstances to occur, 9/11, you know, the financial crisis and everything. but the stock truly has just languished during his tenure. why is that, chris? what is it going to take for wall street to start to buy this company again do you think?

>> yeah. i'd point to two primary things. first, when he took over, it was a company 60 times pe. it was a power stock in the bubble and just a losing hand plain and simple. i think the other primary mistake was sort of loading up on 2006, 2007 vintage commercial real estate at the peak of that bubble and that kind of doubled down their vulnerability to the financial crisis. as we sit here right now, i think once the ultimate split-off and share redemption of financial finalizes and they close the deal and start to realize significant synergies then that can reset the bar for the stock to have an opportunity to outperform again. >> we got to go. david, are you guys shareholders? >> i'm not. i think it is difficult for the company to outperform and always trade at a lower market multiple because they're not making the big moves. we are talking about today the

readjusting of the portfolio. i want bigger moves. i would like them to break the company up and managers like me sing that tune. we have been singing it for a decade. we don't get the moves. sell divisions and buy something else. too spread out. >> all right. good to see you both. chris, thank you for joining us. >> david, thank you for your thoughts on general electric in the dow. slightly lower and the industrial average. dow down 22 points right now. >> taking on tax inversions. jack lew warning congress you do it or the white house will. representative chris van hollen is charge saying they should launch a buy america campaign now thatburg enking's acquisition will make it a canadian company and he'll join us next. also later, our own robert frank says that the nation's widening wealth gap can be explained in one word. that would be stocks. he lays out that case later on "the closing bell." i make a lot of purchases for my business.

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welcome back. treasury secretary urging congress to pass legislation. aym aym aym ayman javers following this. >> treasury very concerned here that what we're seeing is an erosion of the u.s. tax base and want to stop that before it goes much further. take a listen to the treasury secretary this morning. >> to prevent a rush to get in under the wire before a change in the law, legislation should work retroactively applying to any deal after early may of this year. congress may not move as quickly as necessary to respond to the growing wave of inversions. given that, the treasury department is completing an evaluation of what we can do to

make these deals less economically appealing and we plan to make a decision in the very near future. >> very near future is the hint there of treasury secretary. what it is that they're going to do here not entirely clear. what the administration is saying, guys they believe that it ought to be legislateively. a change in the law by congress but as that appears to be unlikely. the treasury might take action on its own to change the incentives really for companies to do the tax inversions and whether or not that's an entirely successful fix is going to be the question here going forward. we have to see what they come up with and announce that. coming soon. >> all right. thanks very much. reaction now from the ranking member of the house budget committee, democratic congressman chris van hollen. >> congressman joins us now from washington in a first on cnbc interview. welcome and first of all, do you expect the white house to go ahead and do something to stop tax inversions here?

>> well, first of all, great to be with you. second, yes. i do expect the white house to take whatever measures they can that's within their authority. to try to reduce the incentive for tax inversions. but i think they'll probably conclude that they're not able to address the whole issue that you can address the whole issue through legislation which is why we intend to pursue that. sandy levin and i introduced a bill, bills in the senate, but i do hope the white house will take whatever action they can using executive authority, again, to reduce the value and benefits of these inversions until congress acts. >> i'm a little confused. i mean, we are looking. we have a sound bite for you to listen to from secretary lew from mid-july where he addressed this issue after so many deals announced and here's what he said about the ability of the administration to do something about this. let's listen in. >> address this inversion

question through administrative action. if we did, we would be doing more. >> all right. what we didn't hear, we didn't hear the first part of it, unfortunately, where he said we do not believe we have the authority to address the inversion question and now suggesting they're going to do something. where does the responsibility lie to do something about this here? with you guys in congress or with the administration? >> well, my understanding of what secretary lew has said is they do not have the authority barring new legislation to address in a comprehensive way the inversion issue. there's a law on the books that deals with inversion generally. however, there are certain tax benefits companies can achieve through inversion and it may be they have executive authority to take away the incentive for them to do some of those things so i don't think there's any inconsistency here. i think even when they take action they'll still call upon congress to do a more comprehensive solution.

>> congressman, let's say that burger king gets together with tim hortons. they improve efficiency and product offerings, more profitable and double the work force as they expand. does that make them anti-american? >> no. nobody suggested it did. >> you said they should buy on an america platform. you didn't say that? >> no. here's what i said. burger king can do all the things you just mentioned without abandoning their tax responsibilities to the american taxpayer. they can do all that. they can gain efficiencies. they can merge. that's obviously part of the marketplace. mergers take place all the time. this is different. this is merging not solely for the economic benefits and for the business purposes which is great. but changing their tax address in order to avoid -- >> it is not clear that's quh y they're doing that. listen to warren buffett with the blessing of the white house and said this is about keeping the canadians happy.

they wouldn't feel good about it moving to florida. >> isn't that interesting, right? the canadians have a law that said that the government will weigh in to see if this is in the interest of canadian taxpayers. what we're suggesting is a mesh in congress to change our inversion law. we have one on the books. clearly it is inadequate. to change it to look out for the american taxpayer and every penny they don't pay in taxes is a penny american citizens. they want them to pay taxes for the road, the legal system they use. for all the other benefits they have of being in the united states and selling as they should in the united states but they don't want to pay taxes but the burden solely on the american taxpayer. that's just not right. >> how about spending the last minute or so on the bigger picture issue? i mean, can you blame a company for wanting to lower its tax base if it can do that legally? rather than trying to put out a little fire here and there, after every deal is announced, what about a more comprehensive

tax revision that does something with corporate taxes that keeps companies in the united states and not worried about going overseas to try to lower their tax base? >> well, a couple of things. number one, we are talking about that. the problem is so far it's just been talk. and no action. >> exactly. >> well, yeah, that's right. what happened? dave camp who's the republican chairman of the ways and means committee, came up with a tax reform proposal earlier this year. wasn't perfect but it was a serious effort. the first person to run away from that was who? it was the speaker of the house. he couldn't run fast enough. and so, for those who say we need to do tax reform, i say, yes, but for those who say we shouldn't deal with the inversion issue immediately while it's hemorrhaging, until we do tax reform, whenever congress gets around to doing that, that's an excuse to do nothing about what jack lew said is a very serious problem. >> the washington research group

says less than a 10% chance of inversion legislation happening in the near term. do they have that wrong? >> that's a matter of political will. assessing it won't happen because you have, for example, in the house, speaker who will not allow us to vote on the piece of legislation we put in. so that's a measure of the lack of pli political will, not the lack of merits on the issue. why should we sit around while people are using this tax avoidance scheme? it's legal but congress is able to action with the will to address the issue in a serious way while we continue to work on tax reform. god knows i wish we had done tax reform and saying tough do tax reform before you address this hemorrhaging of the tax base through inversions is -- just an excuse again for doing nothing. >> congressman, thank you. appreciate your time.

>> thank you. >> thank you very much. >> congressman van hollen of maryland joining us today. and we have about 20 minutes to go before the close. dow's trying to make a comeback here off about 14 points. s&p still off by 5. the nasdaq positive by 8. it is finally almost here. apple expected to unveil something tomorrow. maybe the new iphone. what about a new ipad? another surprise maybe? will it impress investors? that's the question. so far it hasn't. talk about that coming up. baltimore ravens terminating ray rice contract. now that video of his domestic violence surfaced on tmz. we will have the latest later. o. thank you for being my hero and my dad. military families are uniquely thankful for many things, the legacy of usaa auto insurance could be one of them.

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who work with portfolio management experts that's when expertise happens. mfs. because there is no expertise without collaboration. welcome back. more than 300 years since scotland and england formed the united kingdom but it could be undone next week. scots vote on whether or not to be an independent country. >> we have a look at the impact the vote could have on the dollar, your investments. sarah? >> bill, we have known about this referendum for weeks. why are the risks flaring right now? over the week, the polls showed first time that the scots are leaning toward a yes vote toward

independence. the british pound, saw the reaction,worst day in more than a year. stocks there hit, as well. the big economic risk in the scenario if scotland breaks away, what will it do about its own currency? staying with the british pound, unclear of whether it has the backing of the bank of england to help, for instance, bailouts, act as a lender of last resort. joining the euro is tricky and scotland to apply to the eu and going a path would be logistically complicated and likely a lengthy process and all raises the uncertainty level. people could potentially yank money out of local scottish banks, raises a possibility of a break-up. currency crisis. scary stuff. so what does it mean for the united states? well, for one, the direct impact is a stronger dollar. there's the weak british pound. strong dollar. already getting strong. that's a headache for the exports and the multi-national companies of coca-cola, p & g

and stock market, it shouldn't have a large impact. keep in mind scotland is about the size of walmart in terms of its entire gdp. it is not major but the uk is sixth biggest economy in the world and slowdown there could be felt and if there really is a run on banks or a flow exit of the uk, that could shake global markets everywhere. finally, as peter of the lindsay group wrote this morning, it could set a bad precedent as other carareas pursue a break-u strategy and chaotic and painful when the world economy is certainly already fragile. all of this is not the base case but with that poll showing the momentum is there towards a yes vote it's at least being considered right now and hence you saw the market reaction. >> crazy. or as brian hamilton would say, holy crow. >> summer of using the

braveheart right now. >> many of those, as well. thank you, bill, watching in opinion polls i think wednesday and then weekend. a lot depends on whether having that momentum at 51% saying no continues with what is it? 18th? >> right. >> 10th ttoday's the 10th? 9th? >> the 8th. we have time in the trading session right now. and stock ownership in america plunging to a 18-year low. robert frank coming up to tell us what's behind the decline and what it has to do with the nation's growing wealth gap and whether you're buying, selling stocks, bonds or keeping your money in cash. you can vote later. with fidelity's new active trader pro investing platform, the information that's important to you

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nine minutes left in the trading session here. the dow down about 18 points. nasdaq continues higher up 8 plus and the s&p down 5 points. joining me, cathy jones from charles schwab and like to introduce you to a young man returning from -- bob pisany.

>> eight days. >> dispatches from hemmingway. >> the italians should not be running the government but nobody has a better time than the italians anywhere. i say this as an i tall yn. >> yes, you do. you know, we haven't talked about the yield on the 10-year today back to 247 here. where do you see things going here as we progress and get closer yet to the imminent fed meeting next month to finally end quantitative easing? >> i think what will happen is seeing further flattening of the yield curve and long end of the bond market probably in a range now. >> as it has been. >> and upside potential, obviously, as the economy gets better but not a huge amount and short rates are destined the rise as the fed transitions next year so we're basically looking at a flatter yield curve and more range trading. >> we were just talking and what impresses me about today, dow down 15. the global markets are holding up a lot better than the

economic data would suggest right now. we have lousy japan gdp numbers. down 7.1%. the gdp down. think about that. down 7% and all the stimulus going on over there. china with lousy import numbers, as well. we have the ecb with major new stimulus programs. not getting traction over in europe. the venetians are bitterly angry about the high taxes paying. high costs. the fact the tourists are not spending their money. i did my best, trust me. they're complaining and the stock markets holding up pretty darn well right now. >> it's the ecb. right? the promise of liquidity. they promised to expand the balance sheet. trying to drive the euro down. >> which they're doing a good job of right now. >> worked pretty well. >> yep. >> i think there's a lot of belief in total the world is continuing to ride the wave of liquidity of the central banks. >> before your next comment, take a break, shall we? we'll come back, reconvene here

in a moment. have a closing countdown heading toward the close of this monday and then after the bell, how should washington stop this trend of tax inversions? we have more on that. do you just do a band-aid piece of legislation or something more comprehensive in terms of tax reform that makes america more competitive? the answer seems pretty clear but the reality is far from it as you heard last segment with chris van hollen of maryland. larry kudlow is still ahead on that topic. stick around for that coming up. g faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

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about three minutes left. show you what's going on. focus on the s&p. we usually show you the dow for the day but the s&p as we have been highlighting hugging that 2000 level here and last week, of course, hit an all-time high closed out the week that way. today pulling back. down 6 points away from that all-time high. here we are at 2001 and change. the yield on the 10-year, just talking to cathy jones about that. 247. a forecast from you on that in a moment. we have neglected to highlight the price of oil continues lower. brent north sea crude fell below $100 first time today in 14 months. this is the etf on energy and you can see that's down 1.5%

today, as well. first of all, 10-year. you say a range. what's the upper end here to see? >> i would say over the next couple of months maybe 275, 280 on the very, very high end. low end, there's a chance to go down below 230 or so but it seems unlikely. it seems unlikely. >> 275. i wonder what that would do to the stock market. >> heavens. i said two weeks ago we went from 24 to over 3% on a sudden move it would be disastrous for the stock market. i don't think that's going to happen immediately. let me point out something on the energy. we were talking about the statistics. the global economy is not getting traction. there's weaker demand for oil and energy stocks are down. >> plentiful supply, you can lay that at our feet here pumping more oil here in the united states. >> that's right. >> the fracking going up north. >> look at eop, big expiration production companies out there. very high valuations and very

difficult to justify high valuations on the e & p stocks when the demand is weaker and plentiful supply. >> how much of the rising dollar will have that impact on yields, as well, do you think? >> the rising dollar, we think it's going to continue to rise over the next year or so. that import inflation, particularly for things like energy which is a big consumer issue, so that definitely is a positive in terms of keeping yields down. along with attracting capital so spread between u.s. yields and german yields or other high quality issuers is very wide. almost a record level so that keeps the capital coming in, as well. that keeps bond yields down, as well. >> draghi keeping the yields to the low end. we are the one getting better, now talking about taking the foot off the accelerator.

the others including japanese are all talking about continuing acceleration. >> thank you both. >> thank you. >> good to see you. thank you for joining us. that's it for first hour of "closing bell." we'll talk about what apple may introduce tomorrow and whether it will impress somebody in the second hour. i'll see you tomorrow. welcome to "the closing bell," everybody. the dow jones industrial average going without a loss of 27. s&p 500 off about 6 and change. the nasdaq still in the green as we look at how we finished the day on wall street adding about 9 points. some of the smaller internet based names doing quite well today and let's talk about it with jay jordan who joins us with tina fordham and our very own dominic chu and with us is

tim seymour. welcome, one and all. tim, i just first want to ask you, there's headlines over the weekend, moving markets around today, no major deals here. is it all about waiting on apple, the fed? what do you think is the next catalyst here? >> maybe geopolitics in scotland and the uk but we have another ten days to wait out that soap opera. i think apple, alibaba has people focused. people start to question whether that coupled with japan's almost 7% contraction in gdp, what is going on with the world on a week coming out of a friday and nonfarm payrolls weak enough and to think that central banks have another reprieve to say in our lives. that's what markets are trading on. they're trading on central bank policy and ap sl a big deal tomorrow and talking about it tonight on "fast money." >> i want to ask you about that in a second but, tina, first we

have to address what happened with this poll showing a now majority potentially of people likely voters, people who know what they're going to say voting for scotland the leave the uk? i mean, what do we need to know about this? vote's on september 18th. how likely to see fragmentation of the uk? >> well, we have been talking about referendum risk now for a couple of years. and now ten days before the polls we have had the first poll on sunday that predicted a narrow lead for the yes to independence. what we say, though, is you have to take the polling in aggregate and what's remarkable is the extent to which the yes campaign mobilized sentiment and closed the gap in the last month or so quite rapidly on balance maining the view is no is more likely and still a worry. >> taken markets by surprise. you could see the reaction,

currency strategists, people with investments in the uk or companies exposed to them. are you concerned? >> we are concerned day-to-day. we tend to be fairly bull initial at all times. maybe that's a problem but obviously we see a lot of volatility in the markets do affect us particularly in financing but you mentioned the fed, you know, i'm a big question mark about the fed and quantitative easing and operating under the shadow of financial repression which is what the fed or the sovereign interferes with the pricing of anything, in this case, pricing of money. two things happen. you have a misaloe case of assets and mispricing of assets. i happen to agree of '81 driving interest rates up, they have done the opposite here and i think financial and real i sets substantially overvalued at this point in time and nobody has

experience in rebalancing a $4 trillion balance sheet like the central bank does. huh's that going to work and do it without creating a lot of destabilization? >> where does that leave you as an investor? >> we primarily invest in private companies, long-term views. and we think we have a safe strategy that will be effective in the short term and long term with good or great companies, well managed companies, we're going to make out fine. >> an example for people at home without access to these kinds of companies and still want a way to -- want a port in the storm, if you will. >> an example of -- >> investments you are making, areas to replicate on their own? >> hard to do. we come out of the private equity business. it is hard to access as a normal, regular investor. there aren't many tools or vehicles to do that in so the average investor doesn't have that opportunity. and we're fortunate to we do. we've been doing it for 40 years.

>> i wonder, dom, this ties back with what robert franklin will talk about later this hour and not a lot of ownership of individual stock names in this country and listen to the opportunity -- i mean, you sound like, jay, you wouldn't want to be owning any of these publicly traded names either. >> i'm aushs about the stock market, yes. >> if you talk about the public equity markets you are right. robert frank will talk about this but the idea that stocks are underowned by the population right now. not underowned by the ultra rich people but underowned by the rest of us, middle class, those people that have a lot of exposure on that end of the market and what's interesting is you wonder what's going to get people to go into the market. i mean, they have missed out on one of the biggest bull runs on a generation. i remember the s&p 500 hit 666 on a -- >> six years ago? >> yeah. now 2000 for the index. yes, people can naysay all they want about it but the reality is if you have been pessimistic that much so about the stock market, it was a rough go for you because you missed out.

a lot of wealth got created in the past of the five or six years. >> and then you're scared again. >> comment on that? >> absolutely. >> when you talk about underowned, don't forget there's $14 trillion plus of -- >> absolutely. >> representing the middle class and so on. they don't own it directly but a piece of the rock. >> that's an absolutely fair point because the federal reserve study looks at direct ownership and indirect, as well. a 401(k) plan you are exposed to the u.s. market. >> that may keep people, tina, combined with the headlines and people so concerned of what's happening, eastern europe and russia, middle east or even now coming back to the fore with the break-up risk of the uk. are all of these something to be taking in stride or markets far too complacent? >> markets for now don't see an obvious transmission mechanism. that's a point, right?

either it comes through higher oil prices and oil shock or through a growth shock so for now markets see the risks as localized and probably right. two previous points of the population at large, the sense of risk aversion is probably present in the public, too. let's not forget that although, you know, there is a u.s. recovery, it is not felt strongly on main street. >> kelly -- >> tim, go ahead. >> i think we are actually seeing risk assets over the last couple of weeks sew that people are concerned and actually, the transmission of geo political risk is currencies and there's a lot of risk that's tied to policies so there's policy risk. look at the end and look at the euro and there's voluntariatilv. if you look at sterling, oil prices and commodity prices, there's some sense there is no inflation. i'm not sure that's really the right sense we get because in some level commodity prices are weaker for technical reasons. the oil market is flooded right

now and it's less to do about demand falling off a cliff. >> it is true. let's show the dollar index if we can. we're heading to 85 on that. it's interesting the comments you made and concerns of others about the federal reserve policy. by the way, this is a strong dollar policy and is that because everybody else is so weak? you expect it to keep going and what implications does it snoeld. >> i'm surprised that the euro is trading and now down to $1.28 and i would also say on the other issue about the middle class not owning stocks, we are still at the tail end of a substantial deleveraging in our country. i don't think the wealth effect has come in to play with the folks. jobs data as phony as you can get. >> you just don't believe them? you don't think they represent the truth? >> let me explain to you why. the bureau of labor statistics releases numbers but it is not

two metrics most important are job participation rate and hours worked. so if two people join the workforce and work two hours each, they should get credit for one person. hours worked versus 2000 whenever, eight or so, you can make a case we have 10% unemployment. >> sure. that's better than 20%. >> it is but you talk about -- we don't have that wealth effect that comes with -- one of the reasons we haven't had any price inflation, wage price inflation, is that -- >> there's still underutilization. >> huge capacity of the labor force. >> last word before we do? >> real wages stagnant in the u.s. for 20 years and feeds into the sense although the economy is recovering, people don't feel it in the pocketbooks. no sense of momentum. >> no mission accomplished. we'll leave it there. picking back up on a couple of these themes later on in the program and stick around to catch tim seymour with the "fast

money" crew at 5:00 p.m. and talking about apple ahead of tomorrow's product launch. don't miss a moment of that. now, tomorrow, d-day or a-day if you will. "a" is for apple and we'll know if the next hot tech product is coming from cupertino. next, what apple needs to do to impress the market and consumers here and 20 years since forrest gump burst on to the movie screen. now the film is getting the imax treatment. imax's ceo will join us next to explain why. you are watching cnbc. first in business worldwide.

welcome back. tomorrow is apple's big day. everyone's talking about what we should expect to see. iphone. iwatch. what does apple need to do to impress? with us now to discuss, max wolf, larry fishelson and our panel. welcome to you both. max, what do they got to do? >> thanks for having me. always a pleasure to join you. i think we'll see more than it takes to razzle dazzle. the questions with the big build-up of the share price and

the fact or the rumor are better but the aa chip and what it can do, the mobile payments, the full sized iphone, long needed and anticipated arriving. i think we are going to get the iwatch and the fashion press to goo and gaa over it and knock the cover off the ball tomorrow. the question is, the real test the next few weeks. >> sounds like your answer to that is everything. larry, do you agree they need to do everything or one or two things really well? >> no. just a couple things well. we know they do the phones really the best out there. so what they need to do they need commerce and stickiness. for apple to continue to grow and blow it out, which i believe they will, it's about evergreen business and you put the stickiness with the mobile wallet. the payment system. that's huge. when's going on right now is subsidies are going down with the mobile phones and a lot less people getting the subsidies, paying more for the phone. why would you pay more for the

phones? part of the every day with the mobile wallet and content, you will. this is where we see the emergence of this and they start to separate themselves into a whole other level. >> do you both think that they have to introduce mobile payments in some form tomorrow or payments sell off? >> yeah. i think the iphone and possibly the watch are the remote control of your life and need the payments, they need to monitor your health, it needs to be more secure. especially in the shadow of the recent i cloud issues and push security, need to push centrality and begin to merge the ipad, the iwatch, the iphone and the computer experience into a single ecosystem in which they can enclose the person and, therefore, get the premium that they demand on the hardware and software they sell. >> slightly creeped out, but, dom? >> interesting part of this process is you have brought in so many creative thinkers or people that know and understand about consumer sentiment. at least the high end of the spectrum. does this mean that apple pushing products like this is

really making a concerted effort? upper middle class to luxury part of the market? much, much more so than google's android system or anybody else coming out? i don't get it. >> larry? >> that's why the key, you bring in the content piece and bring in the mobile wallet, then you're bringing in everybody into it because everybody's life, you're walking around using it for stickiness for your life so that's where you can say without the subsidies and go to the lower android but i think they're betting they won't go to the lower android but use it for all parts of their life. so the answer is on coming out with the stickiness is huge and what they really have to do. >> it's a question to come extent of the 1%. tina? >> i this, i that, narcissistic. every breath in -- >> we have blown past that concern. do you have an iphone?

>> i have a very old one and i'm much need of an upgrade. >> does the bigger screen entice you most or is it the -- >> making comments about my age? >> no. >> these are very big phones. >> i can go outside the box here. i'm the least technology oriented of anybody but i had the pleasure of sitting next to walter isaacson at a celebration of a mutual friend and talked about what steve jobs was really focused on and the instrument of the itv came up that he was really focused on that. now, i don't know if that's going to happen or not but i can't imagine if he does his work they're not going to pursue that. secondly, jobs himself said the next great revolution would be the convergence of biology and technology. now, tell me that steve jobs isn't going to figure out a way to play in the next great revolution? i'm not talking about on the medical side but instrumentation that goes into this.

i think they're going to come up with some things that people aren't even talking about now. >> would that finally get you interested, as well? in apple shares. >> i'm an apple -- full disclosure, i own a lot of options on apple and apple stock. >> you want to see them do something big in the bio tech area? >> not necessarily. i'm throwing this out, being things that steve jobs was focused on. >> right. >> and that walter isaacson, very interested in these. things could change. >> we have seen it, right? integration of the bio metric sensors, fitness trackers and next step is maybe an app to trick your own blood, set it to the iphone and tell you what your glucose levels are. >> we'll be running down the street the other way. we'll leave it there for now. thank you both this afternoon. >> thank you. >> it will be a big day tomorrow. life may be like a box of chocolates but do young people care how big the box is? forrest gump re-released on imax

screens. why? it's a push to get young people off the phones and tablets and theaters. and also, this video sending shock waves through the nfl today. ray rice fired by the baltimore ravens after new and more damning video released showing him knocking out his wife in a hotel elevator. the nfl says it never saw this before today. players and fans are wondering how that's possible for the all-powerful league. that story is just ahead. 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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welcome back. courtney joins with us a recap of today's movers on a relatively down day. >> start with oil stocks and brent crude below a dollar for more than a year. something notable. amazon.com moved lower and this on the news of cutting the price to 99 cents with a contract ahead of an iphone potentially announcement tomorrow. news of keryx that the drug for kidney disease with an unexpected safety warning and let's end with yahoo! currently holding a 22.5% stake in the chinese e-commerce company of alibaba. back to you. >> thank you. talk about the dog days of summer, as far as movies, only a handful of blockbusters.

many in the industry are saying a key problem is streaming. everyone's on netflix or hulu in the comforts of their own home or wherever they are. now, imax is trying to turn that around. on friday, the company launched the never compromise company with the 20th anniversary of "forrest gump." we are now joined in an exclusive interview by richard galfyne. welcome to you. >> great to be here. thank you. >> the movie to target millennials? >> yeah. so i think where we were going with this is that the world has really moved over to convenience. how to do things fast, how to do things easy. watch content wherever you can. whenever you want. and i think we tried to make the point that there's a price to that. if you want to do that, that's fine. but take a moment and think about it and say is that the real primary way you want to consume content?

we tried to say that in a life that's filled with too much to do and too little time, you ought to take the time and really savor the experience of living. and imax is one way to do that so our tag line never compromise meant that, you know, when you have the time and you have the inclinati inclination, sit back and really enjoy a movie the way the director wanted it made. >> it is interesting to hear the industry pitching the concept of going to the movies and i'm wondering about the new technologies, as well, like escape building the movie screen around you. how much investment and reinvention do you think imax will potentially have to do here? >> we have done a lot over the last several years. we have moved from 2d from every movie to some many 3d. we invented laser technology and introducing later this year which is going to provide better contrast of blacker blacks and immersive movie experience and

introducing a new sound system and we think we just have to stay ahead of the curve. and you have to say to people, and an analogy we use in the brand campaign was microwaving food n. a hurry, there's a place for that. but you don't want to eat every food microwaved and by the same token you don't want to watch every movie -- >> you are the farmer's market of the food industry. >> exactly. >> i'm curious to the panel here. who here has been to a movie this year? >> imax. i love it. it's a great experience. i know something about the movie industry. we were the largest shareholders 1982 to 2004 but this imax experience with the sound and the stadium seating and the great screen to an old guy like me, that's a lot of fun. >> kelly, i want the know if you've been to a movie. you are neck deep in research reports. >> i'm not normal. i'll not relevant.

no. >> i hear you. here's my point. we talk about microwaving foods. that was the point that rich brought up there. microwaving foods brought a convenience to the cost factor to the every day family which i im would argue costs me $20 to o to a movie. at what price point do you feel as though you're creating a product that every can enjoy as opposed to making it like a professional baseball game? i'm not saying it is because it's more expensive. imax, it's a premium proposition, right? >> i can give you an example of china where the average ticket price $16 and diz posome of the successful in the world, averaging more per screen in china than here and movies still a relatively inexpensive form of entertainment compared to sporting event or theater or

concerts or other things so i don't think we're there yet. i think escaping for two and a half hours, sharing it as a social experience is still one of the ways you enjoy life. i mean, let's remember, i hate to be philosophical about it but not fast you get through life but how you enjoy it. i think that's sort of a point we're making. don't just rush everything. take time to soak it in. >> well, if we're talking, getting on the high horse and i want to ask you about the topic of tax inversions. you come to us from toronto. tim hortons sparking the outcry with burger king about whether or not u.s. companies able to buy others to effectively move their address. have you been involved in tax inversion discussions? would you be open to such a scheme? >> well, you know, fortunately for us, we were born in toronto. about 45 years ago. so, we have the ability to repatriot our capital without a second level of taxation so we

don't need tax inversion. we're canadian company. proud to be a canadian company and get the benefits. >> anyone else? >> about inversion? if you look at the average tax paid it's somewhere less than 25%. ge doesn't pay tax. this is blown way out of proportion. it could be solved if the u.s. said repatriot to the states, we don't charge you anything. think of the trillions of dollars as long as you don't repurchase stock, it would be a bonan bonanza. >> we'll have barry -- we'll have more on this very issue coming up. rich, thank you for joining us. >> thanks, my pleasure. >> the ceo of imax. the time is now, that's the message. treasury secretary sending to congress to pass anti-inversion legislation. so what about tax reform

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with many inversions, the change is done for tax purposes and the new entity is for all intents and purposes just changing their address. this practice allows the corporation to avoid their civic responsibilities while continuing to benefit from everything that makes america the best place in the world to do business. this may be legal but it's wrong and our laws should change. >> ah, but will they? treasury secretary jack lew saying today the white house will make a decision on executive action for a tax inversion legislation very soon. want to bring in larry kudlow now along with josh barrow of "the new york times" to discuss. welcome to you both. larry, what will happen on this, anything? >> i think very little. i don't know what he's talking about. the's no way to get legislation done. absolutely not. now, maybe they can tamper with this scoring of earnings versus

debt. maybe. but i'm not sure they have the authority to do that. this is a revenue item and revenue items have to go through the congress so i think that lew is blowing smoke at us right now. >> josh, do you think the white house will make any moves mere to try to curb this behavior? >> i think it's likely to take a fairly limited executive action. they have an ability to reclassify payments to equity and make them taxable in the united states and i think the administration relishes the fights over its legal authority with congress. you saw the president sort of joyfully talking about congress suing him so i think he would like the opportunity to once more say, congress didn't act, so i had to act executively. we'll then see how it shakes out in the court whether the power is upheld for the president to do that. >> that could have a big impact. if they go ahead with the legislation, that would be a big deal. >> no. wait. the legislation would be a big deal. the earnings stripping that josh is describing is a very small deal. look. obama just backed off executive

action on immigration because the red state democratic senators don't want it. i don't think they want a quarrel over this. here's what you want to do. can we get down to brass tacks here? you worried about inversion, capital leaving the united states? repeal the corporate tax. just repeal it! okay? get rid of the deductions. ged rit of the whole thing and go to something like a 15% sales tax net of all investments. >> larry, it is easy about the repealing part. totally ignore the budget, for example, the fact we need revenue in the country, easy to repeal it and not the second part of what you're doing and the fact there's no political will in congress to do anything on that issue that's why they haven't moved forward on it. >> look. you have several things cooking there. don't talk to me about political will. you and i can't predict political will. snok. >> we know it isn't there. it is not there. we have representative van hollen talking about the immediate for political will standing if front of the capitol building.

>> i know. i heard mr. van hollen and i wish you challenged him on all those points. on the economics, if you repeal the corporate tax, you will get a tremendous explosion in investment, in productivity, in growth and wages. and i think because we're on the wrong side of the laughter curve -- >> no. we like that part of it. about the $250 billion hole that happens when you get rid of the corporate income tax? >> recapture that and then some still going to have an income tax although i hope that's reformed, also. still going to have a corporate sales tax net of investment. you know how trillions of dollars of revenues over ten years would happen if you got rid of the current corporate tax. >> just trying to say even if we take larry's plan, sounds easy to implement or else we would have had the political will to implement this. >> you cut taxes and get extra revenue elsewhere and mostly

proved wrong. i don't think we're on the wrong side of the laughter curve like the 1970s. what larry proposes a sales tax is more regressive. economists tend to agree 80% of the burden on shareholders, mostly paid by wealthy people. replace it with a sales tax or something like that you end up with a big shift in taxes down toward middle and lower income families. i agree with larry to repeal the corporate tax and replace it with more aggressive taxes at the shareholder level. tax ordinary income rates, tax income before it's realized, tax shareholders on the gains whether or not they sell the shares on a given year and replace the corporate tax with that but that would be a huge political minefield and the people that lobby wouldn't like it because it's rich people again paying the thing that replaces the corporate tax. >> let's be very clear. not a national sales tax but the present corporate income tax with a corporate sales tax.

that would be excludeing, excludeing all investment expenses. that's what i'm talking about. >> that's a vat. >> no. i don't want a vat. i just want to limit it to corporate activity. corporate revenues in effect. second point i want to make is under the current system, it is the wage earners who are penalized the most by 100% according to research of the american enterprise institute. i think you are right, however, josh, that the burden should fall on the demand side. the demand on the shareholders and they should pay the capital gains and they should pay the dividends. i totally agree with this. >> do you think that, guys, how likely before we have to go to each of you think that it is that ultimately move toward a system where we're going to see much higher rates of capital gains and dividend tax, as well? >> i think probably not a lot of change overall in tax policy. we don't have the fiscal crisis. the congress doesn't do anything

it doesn't have to do. >> the answer is no. >> thank you. larry kudlow, josh barrow, thank you both. important issue and breaking news as i mentioned on the matthew martoma case. kate? >> reporter: hey, kelly. nine years is the sentence that he had just received from the judge at the federal court behind me. that's more than michael steinberg received earlier this year. but also, less and not a record i should add an another record sentence bearer for an insider trading case. definitely a tough sentence. more than the baseline that the government was asking for but not a record although significant. he's also going to be forfeiting $4.9 million tantamount to the bonus received the year the insider trading occurred. >> a quick response here. forfeiting $9.4 million and 9 years opposed to 8 people were expecting. jay, any thoughts here?

>> hopefully this will help deal with the industry itself, the hedge fund industry, because i think historically there's a lot of insider trading but unfortunate or fortunately these folks have been the ones pinpointed and my guess is it's a massive problem and maybe this will -- >> is or was? >> is and this may mitigate it a little bit putting the folks in jail. but i don't know. it's a tough call. you know? i don't -- i don't think the fine's probably much relative to what these folks have been earning. >> no. i think the tally for the figure north of 350 million. >> about the signal it sends right now. the u.s. attorney's office especially everybody in the southern district of new york here have really been going at it with regard to insider trader and a number of convictions, a lot of arrests made throughout the course of the last five, six, seven years along these lines. to see somebody go to jail for nine years for this kind of thing, i mean, there are those

who are probably victims of some of these incidents that probably thought that the people should have gone away for a lot longer and these are in relative terms some of the stiffer penalties for this kind of activity and what it says is that there is going to be no tolerance and if there is and you get caught, you will do hard time and that's what nine years is. >> hard time. tina? >> well, i think the question is whether deterrence works for white collar crime. does it work for other types of crime? there are real questions there because i think people have a huge capacity to isolate individuals and to say that that won't happen to me. >> that's a point. guys, thank you for now. the nfl and ravens rocked this afternoon. stunning video released this morning of star runningback ray rice punching out his now-wife. rice out as a member of the ravens and suspended by the nfl indefinitely. how many are openly wondering what the nfl thinking suspended for two games a few weeks ago. more details just ahead. please,.

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welcome back. the ray race story dominated activity on our website. we want to check in with the managing editor adam wassler. as we just mentioned, this pulling in a lot of interest. >> yes, it is. it is a big shaker on the website today. we have some other stories doing okay, too. eu sanctions. people diving into that one. anything about uk and russia drawing big traffic. olive garden, there's $100 for 7

weeks of pasta. our audience is obsessed with food. far and away the ray rice story dominated the traffic. kelly? >> and allen, could you remind us, as well? an hour or two ago, correct, that this word came down? >> yes. barely an over an hour ago it came down and came down pretty quickly and there was a lot of jostling and then the story out. people started going right into it. it's clicking up over 300 clicks per minute and sustained traffic all through that time. >> yeah. right around 2:00 p.m. eastern. both the ravens and the nfl responding. thank you. for now. we want more reaction to what's happening with the nfl and ray rice and joined with keith reed, former senior editor of "espn" magazine with the panel here. thank you for being here first of all and your instinct, what do you think happened today? >> well, i think what happened is that the nfl had to deal with the problem of actually people

in the public actually being able to see what happened with ray rice. before we kind of knew what happened, right? he had gone and done an interview with the nfl. the nfl said they talked to him, he told the truth. there's really nothing new to know about what happened except to physically see what happened on that elevator and what we saw is not something that anybody could like whatsoever. it's pretty, pretty ugly. >> keith, here's something i want to know. as a viewer, as a football fan, you talk about what's new to know. we saw that footage, the shocking footage of what happened between ray rice and his now wife in the elevator. how is it that nobody saw this footage before? i mean, there may be conspiracy theories out there. how's this thing not come to light until now? the nfl and the ravens both made statements saying this is the first time that they have seen it. but this is a security camera feed, right? from the casino. how did you not see the other part of the security video feed? >> well, i mean, the question,

that's a question that the nfl is going to have to answer. i think the nfl will have to answer a lot of questions. why if they knew on the videotape was there and assume they did because they said that they talked about this, right? why did they hand a two-game suspension until today and now it's an indefinite ban for ray rice and cut from the team? how did they not see this videotape and tmz got it and not the nfl? how is it that the nfl hands down a punishment knowing what they knew, again, until this videotape came out? there are many, many questions and handling the discipline for ray rice to answer for this not to continue to look like just a public relations fiasco and a fiasco in terms of handling of a situation about somebody's health and safety and wellbeing, not just about protecting the shield as the nfl likes to say. >> putting aside the nfl, you know, where's the district attorney or the state's attorney here?

why isn't this guy in jail? this is out and out assault on a defenseless human being. i don't care if she pressed charges or not. society should press charges. so the nfl's -- we can't rely upon them at all but should have faith and confidence in the georgia or atlanta district attorney that this fellow would be arrested and prosecuted. >> look. it does make you wonder because this isn't the first time and then, keith, quick word before we go here and now that this is going to happen when private situation becomes so public like it is, this does go well beyond questions of the nfl's involvement more broadly to where's justice? >> absolutely. the nfl's conduct policy states they don't have to have a legal decision, they don't have to have charges or convictions to do anything and begs the question. we knew about this. the police knew about this. this videotape is out there for months. how come if it looks like we see it to be, ray rice was never charged and before the nfl got the opportunity to do anything.

a two-game suspension or never touches another football in his life. many, many more questions i think now that this videotape has come out than the handling of the situation both from the nfl, the ravens and law enforcement. >> tina, real quick? >> i live in london. not an expert on u.s. football but put together the case and the insider trading case and say it's more momentum behind the idea of superstars not being able to escape justice during this environment of anti-establishment sentiment. there has to be a penalty. >> we'll leave it there for now. thank you, everybody. up next, our stocks to blame for the widening gap of the 1% and the rest of america. robert frank will take a dive into data from the federal reserve revealing a reason why the rich get richer and the rest of the country feel it is lingering effects of a still recovering economy.

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welcome back. the old saying you got to be in it to win it also applies to the stock market. a new report suggests most americans are not in it. robert frank is here with more. robert? >> hey, kelly. americans' ownership of stocks now at an 18-year low.

just down from a peak of 53% in 2001. that's the lowest since 1995. and get this. fewer than 14% of americans hold stock directly. that's a low that we have not seen for more than 20 years. now stock ownership has also become highly concentrated in the top, the top 10% of americans owned 81% of all stocks in 2010. now an economist says that number probably increased since the recession. rising stocks are a big reason the wealthy have recovered in this recession while the rest of america has not. among the top 10%, the mean vol of their stock holdings are up 17% between 2010 and 2013. but the good news is that everyone who stayed in this market through the recovery has done well. and not just the wealthy. take a look at this. among all americans who own stocks, the mean value of their stock holdings jumped $269,000 up from 228 in 2010 and up from 137 in 1995. a big jump there. kelly, instead of the haves and the have-nots, we eshould be

talking about the have stocks and the have-nots. back to you. >> they seem to be one and the same, thank you. i want to bring in strategist j.j. kenahan who has more on investors' stock habits. welcome back. >> thanks. great to be here. one of the things that i would say about robert's report that i would disagree, one of the things they discount ready etfs. over the last 18 years, etfs have exploded in the last 18 years. we have to take that into account. our clients trade them on a very regular basis. and the other thing is the use of the product of options by retail clients. and those are two things who aren't included here. and actually in many cases, it's a great way for retail clients to use their money. >> i want everybody to go to cnn.com/vote. where would you rather put your money right now? stocks, bonds, or cash. the polling begins right now. and that, as you said, stocks, you know, people should think about not just those individual

companies that they may own, but also through etf's. options isn't the same as a stock ownership by a long shot. >> you ask where you want to put your money. historically, since world war ii, there have been 41 crises globally. and the single greatest asset class has been corporate debt has been protected, even through russia. they had the devaluation. even russia in '98. corporate debt i think is the safest asset today. >> tina? >> corporate debt, i guess it goes back to the question today for a lot of americans. and maybe this is what we're seeing earlier as well. it is worth it for me to try to push to have that extra disposable income that i'm spending on the stock market, does it feel safe? does it feel like i've missed the run? is it just not for me? >> i think for people in the middle class, and we made this point earlier, there is going to be a recal a brace about what to expect for markets. the other point i would make, though, in the u.s., you still have a much greater share of the

public invested in systems compared to other developed countries. it may be off from its highs, but it's still higher than anywhere else. >> just so everybody nose, 7% are saying stock versus bonds or cash that might be skewed by people watching. >> can i ask a question? j.j. made a great point. >> we unfortunately is to go, because i do think we're going to have some more breaking news here in just a moment. yes. are we going doing that right here? guy, thank you. i'm so sorry about all a that j.j., thank you. robert, thank you. there is more about it on the website. courtney reagan, some breaking news on home depot. court? >> that's right, almost a full week after we found out that home depot was looking into a potential data breach, the company has confirm they'd have been the victim of a data breach. the company saying that customers that used a payment card in u.s. canadian stores potentially from april forward may have had their data compromised. home depot.com and mexican

stores appear to not have been impacted. the company saying that debit card pin numbers likely have not been compromised. the company providing credit protection, id protection to all of the consumers that think they may be impacted. we do not right now know how how many consumers potentially could have been impacted. but, again, home depot confirms it has been the victim of a data breach. kelly, back to you. >> courtney, thank you for now. we're going to take a quick break. we'll be right back with the panel in two. panel in two.

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welcome back. can we squeeze in a final thought with our panel before we go? >> i have a forward thought. buy low, sell high. >> say it again, i don't know if we caught it. >> buy low, sell high. >> funny how that works. what part of the world? >> be wear the new political disorder. >> despite the complacency? >> despite the complacency, yes. it's changing the operating environment for companies and investigators. >> that's a great.. don? >> brent crude below $100 for the first time in a while. i'm watching the energy complex. what happens to oil prices given the fact that things may flare up again or maybe not. >> thank you for being here. it's time now for "fast money" with melissa lee.

what's on tap? >> welcome back, kelly. everybody loves a good moment stock, but lot broke in the month of march. down 67% from the high in march. we have an analyst saying the sentiment is unduly bearish, upgrading it today. we'll have that analyst on to tell us why he says it's a buy right now. >> and i understand maybe a little apple talk too? >> yeah, we'll mention it. >> all right. over to you guys. >> thanks, kelly. "fast money" starts right now. live from the nasdaq markets in new york city's times square, i'm melissa lee. timothy geithner, pete najarian, karen finerman, and dan nathan. a big announcement from general motors today. the company says it will have a self-driving cadillac available within the next couple of years. so why has the stock fallen today? that story is coming up. but first, tonight's top story, oil's big move. wti crude selling at an eight-month low today. and brent falling bowe 100 bucks a barrel for the first time in 14 months. energy names like exxon,