tonight the president speaks. the markets on hold a bit. we will preview that big speech and the impact it might have on your money. plus why aren't more low mortgage rates helping more? did apple just kill the holiday season for other retailers? and is roger goodell the best thing for the business of the nfl? >> i really don't ask for much, but today i would like to ask

for more in the way of market movement to talk about. but this is what i've got for you anyway. the s&p 500 behind me is up by about five points. and it's up for just the second time in seven sessions. but we did get a little lift across the board when that latest poll came out saying the people of scotland will vote no in the upcoming referendum. over the weekend it looked like maybe it was getting the squeaking majority. the dow also here up by about 51.7 points. it could avoid a three-day skid. something we haven't had for some time. >> 51.7, solid number. thank you. the president expected to talk terrorism and the growing threat of isis when he addresses the nation this evening. but what does the market need to hear from the president tonight? joining us now, executive vp and chief investment officer. first to you as a guy who will no doubt listen and watch the

speech, you're probably personally and politically interested in a stock market perspective. what do you want to hear for you and your clients? >> it's funny. the intersection between what they are american people are looking for are pretty similar. i think it would be reassuring to have congress involved. i think unilateral decisions are, you know, are okay. but we would like to see a more cohesive decision here. i think also the fact that isis doesn't recognize the syria border, neither should we in this situation. i would expect we will hear military action in syria as well. and then lastly dollars. i mean, how much is this going to cost? will that be discussed? i don't know. but certainly that's a consideration in the budget. and we do need to have congress involved. because eventually this budget does have to get passed. >> i understand the geopolitical importance.

i understand the need for humanity to be protected from some monsters out there. but a neutral stock market perspective to understand how what you just said may tie back to the dow and our listeners and viewers 401(k) plans. >> i think it's really more psychic value than anything else, brian. there's really nothing tangible there that will say, oh, if this decision is made or announcement is made tonight that that's going to have a direct impact on stocks. i think it's really just a function of confidence, a function of cohesiveness, a function of will. and of course at the end of the day, dollars. >> talking of confidence, i want to just mention a little fact here. brian, listen to this. the new abc/"washington post" poll say only 30% approve of obama's handling of the affairs. that is down to a career low. how much does popular opinion and what he says tonight and how much of a sway that will have on

popular opinion, how much does that really mean to e the markets in terms of what it could mean for the midterms? >> well, i think looking at midterms, we're just getting back into that season. so that's probably going to dominate the newsreel. we'll see how that plays out. getting back to all the issues we're talking about here, we're picking these tiny spots. we're calling them the bricks in the wall of worry. and the big picture from our view here is the fact that not one of these bricks is going to blow up the entire wall. and that in thinking about this, are these reasons that potentially you can see people taking profits. sure. but the reality here, though, is we have an equity market up almost 8% this year. just a hair off of an all-time high. we're focusing on all these little things. from our perspective, these little things could be reasons to take profits. the market doesn't really even need a reason. we think volatility would pick up in the second half, but more importantly you need to look at the broad global growth story. we're still confident in that. in doing so you need to take

some short-term lumps should they happen. look at the longer term perspective. in our view, we think that's still positive. and so looking at this, from a public approval perspective to get back to your point, one i think that is definitely an issue for market right now. and i think you will get a referendum on that as we move into midterms on president obama. but looking at the geopolitics here and abroad here, i think those are issues that we're going to have to face. the bigger picture here, volatility should be expected to move higher as we move through the second half of the year. honestly the big picture has nowhere to go but higher. >> quickly though, is there something the president could say tonight that would be a negative for the markets? what would be the worse thing he could possibly say for the markets? >> i think a couple things. one, if you had uncovered some sort of isis plot against american assets, i think that would be possible. we don't think that's likely.

then if we look past an air force base type of mission, if we move to ground based, i think that would be viewed as a negative by the market place. >> it was a pleasure, guys. thank you very much. >> thank you. >> thank you. >> you can catch cnbc's coverage of the president's address to e the nation tonight at 9:00 p.m. eastern. make sure you tune in. elsewhere today, big headline on mortgage applications. it was in the wrong direction. let's bring in diana olick. why did we see more than a 7% drop in weekly mortgage applications when rates are so dog gone low? >> it doesn't have anything to do with the rate. a lot of people say it inched up slightly and that's why it tanked. maybe on the refi side but not the purchase applications. what you have going into fall is it's traditionally the first-time home buyer season. they are not the the market not because of the mortgage rate because of credit availability

or perhaps they don't want to get into this market, they can't get into this market because their wage growth isn't big enough, they're not getting paid enough, or because they're paying so much in rent they can't save for a down payment now. you see it in the applications for government loans, fha and va which are traditionally for first-time buyers, those applications are down even lower than the whole application pool. >> so the point is well taken that maybe it's not just whatever the mortgage rate is that affects how many people actually apply to get a mortgage. nonetheless, when we start to see mortgage rates, mine are going to inch up. my guess is maybe a little bit more next week and more beyond that. especially if next week we get the removal of those two words considerable time for the fed policy statement. that could have a significant impact. what happens when mortgage rates really start to move? what will that do to the mortgage market? >> i think it hurts the home buying market in particular. right now you have a lot of buyers who are right on the edge

of homeownership. that is they need every little bit in that percentage rate. they need to be able to say, okay, i can afford this right now. i feel like i can continue to make these payments. also their debt to income and value, that all that math works out with that mortgage rate. we saw it start to go up this week. for those buyers that are on the fence, that rate's going to matter a lot. it does not matter for the jumbo high-end buyer. >> very quickly, though, should we automatically assume that a lower mortgage applications number means that housing is softening. all i've heard from realtor friends and a brother who's a realtor is there are not as many good homes to put on the market. lower inventory, shouldn't that mean lower sales as well? >> well, absolutely. that's what's been plaguing the market for the last year is the low inventory. we are seeing inventory come up in a lot of markets. also the number of all cash buyers is a lot lower than it was last year. cash buyers moving out.

>> i mean, at one point in seattle there was one month of inventory available on the market. >> yeah. and you're seeing those levels come up ever so slightly, but again you're not seeing the listings. you're still seeing price increases even when there's not a demand to meet that price increase. it's that low inventory, concern about the market, and wage growth and credit availability that's really hurting housing right now. >> thank you very much for joining us. >> all right. i'm going try to do this in my best grinch voice. you're a mean one, mr. cook. how apple may have just stolen christmas. plus staggering stats on just how big facebook really is. >> and then later on we're going to take a cnbc-style look at the nfl's leadership crisis. will commissioner roger goodell keep his job and is the nfl brand in jeopardy? do stay with us.

♪ well, don't look now. except that we made you look. there are only 105 days left until christmas, but don't expect to find apple's shiny new watch under the tree this year. it's not available until 2015. well, let's bring in cnbc's

contributors jan rogers niffin. steve leisman and i were covering this yesterday. and we were all talking about the shiny new features. and then we were told it's not coming out until next year. we were like, huh? it's going to completely miss the holiday shopping season? do you think this timing was intentional by apple for some reason that we really don't know or was it a psychiatryup? what do you think? >> i hadn't thought about that. i was just too busy saying hooray, it's not coming out for christmas. it won't wreck my retail sales. but i doubt it was intentional. surely they would have brought it out for christmas if they could have. but they do need to sell you a six before you really want to buy the watch anyway. >> by why would you say hooray? good for the other retailers? >> yeah. it's great news. >> yeah. last year 100% of the retails came from samsung, amazon, and apple. all the rest was just market share pushing back and forth. this year will be the same way,

but it won't be as bad as it would have been. >> this is the best news retailers have gotten for christmas. people have to have something under the tree, right? nobody is going to say, hey, there's nothing under the tree for you this year but in a couple months you're going to get something. right? it's about as much thrill as a gift card to a chain restaurant. >> by the way, i do think it was intentional. this way they can avoid the kind of noise that would be out there if they didn't have the numbers by christmas. i think the bigger issue is now we're going to go back to blaming christmas for the real reason we've been blaming the holiday season for the past how many years? that it's something else that's more structural. >> can i push back a little here? time and time again we're being told that all consumers out there are strapped. just imagine this. i'm going to paint a scenario. you tell me whether i'm completely wrong or whether it's feasible. say you have a budget, is it possible you would hang on to

get the apple watch earlier on in 2015 and therefore not spend so much at christmas? >> if your budget -- >> no. >> are you going to hang on? >> no. if your budget is $200, you ain't buying an apple iwatch. >> depends. >> somebody might do that. but it will be a really small percentage of the somebodies that would have bought it had the watch been available. every retailer thought there'd be a great new phone this year. and there is. every retailer thought there would be an iwatch and there's not. so they're all thrilled that they don't have to compete for those dollars. there will be some people that defer and say i've got my six, i want the watch. they save their money. but that will be a really small group. and it would have been a really big group unfortunately had the watch been available. >> right. >> you also have -- i mean, from what i understand and i was a little bit busy yesterday doing something else, you've got to have an iphone to use the iwatch. >> congratulations, brian. >> thank you very much. by the way, you've got to have the iphone.

the natural market for the iwatch buyer is. either an existing iphone buyer or somebody who then would have to purchase both items. >> right. and look, the whole concept of wearables has been hashed out for the past two days, two months, year is still unknown. and because you already have what's going on in the android market with wearables. you already know what's out there. you already have the garmin watch. you have so many things going on. so i think we're putting almost so much into the wearable and the watch. now as you see people really trying to hash it out and really try to understand whether there will really be uptake on this, i think we're putting too much on apple for this watch. the phone's a different issue. but this watch, we'll see. >> you can live without a watch. you can live without a watch. >> many people can live without watches. >> maybe i'm wrong. >> you are not wearing a watch, my dear. nor am i. >> you don't wear a watch. i don't wear a watch. because we all carry our phones.

but do you think that this is going to be -- >> i'm wearing a watch. but it's 40 years old. >> is this a game changer for wearables? is apple going to make us realize we all need something like a wrist bearing wearable? >> no. not a game changer. >> look, you don't know. let me just say something, guys. as a guy who poo-pooed going into the tech trend 15 years ago, what we don't know is what this really will mean going forward for fashion, for wearables, for fashion. we don't know. but we know that for this christmas, huh-uh. doesn't matter. won't matter. wouldn't have mattered. no matter what. >> wearables are coming, herb. but this is not a game changer. smart watches have been around awhile. this is another smart watch. there will be an upsurge in wearables going forward. this is not the game changer. >> anyone remember the sun microsystems dial? >> no. >> i made it up. sun dial. >> that was terrible. >> it does count your burning

calories, i like that idea. >> i'm with you on one thing. this is going to be the best christmas in a very long time. we're going to have the strongest apparel sales at the back end of this year in the last five years. >> if anything, i agree with jan. it's great news. let's say you're going to buy the same amount of stuff for the holidays as you would and now you're probably going to buy something else in february or late january which is historically the worst time of the year for retailers. this could be the savior to retail in the dead zone after the holidays. no, jan? >> no. because it could only -- >> is that a double no? >> because it's only a savior for apple. not for the rest of retail. >> there are people who will starve their kids for the latest gadgets. thank you for joining me. you mentioned garmin -- >> by the way, we just got to throw this up. a lot of people yesterday saying that garmin would be one of the ones that are slammed. garmin right now the stock up 3.5%. it is the single best performer

in the nasdaq 100, by the way. and they've had versions of these so-called -- obviously not nearly the same. they've had versions for years at garmin. maybe it's short covering. >> okay. well, there are 2 trillion reasons why the u.s. manufacturing sector is calling for less regulation. we're going to have an exclusive with the president of the national association of manufacturers next. >> and why is microsort making a multi-billion-dollar bet on a video game that looks a little bit like legos? "street signs" will be right back. know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running.

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welcome back to "street signs." we're watching walmart. their shares are down marginally. but here's the news. it's going to sell the new iphone 6 for 179 bucks. that's with a two years contract with a verizon or at&t or sprint. customers can preorder on september 12th and receive in addition a gift card. still they're selling it for less than you can do it elsewhere for on the market. >> thank you very much. the number of americans living oversea who is are now ditching their passports is at a record high thanks to pain staking new tax filing

requirements. data from the irs shows nearly 3,000 americans officially cut their ties to the u.s. last year. and that is triple the amount from 2012. one tax expert even told cnbc that the amount of work and money that is needed for them to do their taxes is the main reason so many are renouncing their citizenship. as an ex-pat living here, it is no picnic either. it can be very onerous trying to navigate two tax jurisdictions at the same time. >> it's also a stimulus for accounts. >> it is. it's a great business for accounts. >> thank you for helping the accounting economy. meantime, more evidence that federal regulations are indeed taking a toll on u.s. manufacturing. the national association of manufacturers out with a new study that might surprise you a bit. key takeaway is regulations are costing the country $2 trillion annually which equates to 3% of g gdp. here is ceo and president of the

national association of manufacturers. the critics of it will come at it from this angle. they will say once again corporate america is whining, essentially, about regulations because ask any business they would love to have no regulations. how do you counter that? >> that's not quite right. we just want to make sure there's balanced and fair regulations and sensible regulations. what the study really shows is the total cost of regulations, $2 trillion is the number you've used. but it's actually $2.028 trillion in compliance cost to the economy. now, manufacturers are hit hardest. and we know policy makers of all political stripes would like to see the manufacturing sector grow because that's good for the economy. that's good for jobs. that's good for the american way of life. but it's hard to grow the manufacturing sector when you've got all these compliance costs put on our backs. >> when you talk about compliance costs, just specify here which regulations are the most onerous for manufacturers.

obviously there's accounting compliance, health regulations, tax regulations, all kinds of regulations. what are the most onerous? >> well, i think you just made the list. certainly the most onerous for manufacturers, manufacturers are hit hardest by environmental regulations. the environmental costs of some of the labor compliance costs are quite sturdy. but here's the interesting figure. 20,000 -- approximately $20,000 per employee per year in compliance costs for manufacturers, that is double the compliance cost for other businesses in the country. and when you look at small manufacturers, those folk who is have 50 or fewer employees, their compliance costs are over triple the average business. $35,000 per employee per year. that's pretty high cost. >> why has it gotten so bad, jay? >> well, look.

i think everybody cares about making sure that there's a safe workforce, that we have clean air and clean water. manufacturers are very much included in that. but at some point, it's very important to look at what the total cost is of regulation. and ask yourselves is this working? >> but others say no regulation or less regulation has its own externalitie externalities. >> you're never going to hear any credible business owner or individual or manufacturer say no regulation. that doesn't exist. take that off the table. the critics are just plain wrong. the fact is you've got to look at your regulatory system and make sure it's balanced, fair, and that there's a good balance between benefits and cost. and when you constantly have the costs being put on manufacturers and then saying, hey, we want you to grow, we want you to create jobs, those two things just simply don't add up. and the other thing that i think is important to note in the study is we're only looking at

regulations from 2012 backwards. all the regulations that are coming out of this administration on ozone standards and greenhouse gases and others are not even included in this study. and those could be the most expensive ever. >> could get worse then. very quickly, putting regulations aside, how much is the strong dollar hurting manufacturers that export right now? >> well, you know, we go back and forth between the cost of the dollar internationally depending on what region of the world we're talking about. so there are many factors that go into the cost of manufacturing. we're focusing on obviously on the regulatory burden with this particular study and we hope that this will help create a dialogue for congressional candidates in this election cycle. and presidential candidates in the 2016 cycle. >> jay, thank you very much for joining us. >> thank you. >> interesting study.

california's terrible drought is putting the rice in crisis. we're going to explain that. >> later on, is nfl commissioner roger goodell still good for the business of the nfl? we'll dig in when "street signs" returns. stick around. the cnbc realtime exchange snapshot is sponsored by interactive brokers. it's the barbarian queen. wait, wait, wait, wait, wait, wait...whoa, does she have special powers when she has the shroud? no. guys? it's the woven one the woven one. oh, oh that gives her invincibility. guys? no, no, no... the scarlet king is lord victor's son!! no don't. i told you! you guys are gonna be so surprised when you watch the finale!!! you're so lucky your car has wi-fi. yeah...i am. equinox from chevrolet... the first and only car company to bring built-in 4g lte wi-fi to cars, trucks and crossovers.

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why pay more for less? call today for a low price on speeds up to 150mbps. and find out more about our two-year price guarantee. comcast business. built for business. welcome back to "street signs." check what's happening with pcyc. moving higher after the organ drug status was granted to treat a type of nonhodgkin's lymphoma. one more biotech or pharma company that's seen a big spike. now time for street talk. first up we were talking a lot about ebay yesterday and today getting a downgrade. >> jpmorgan, the analysts dug in believing apple pay will be a

significant threat to ebay's payp paypal. they believe it will weigh in on the target. dropping from 65 to 63. >> okay. hasn't been a good year for them though. not an upgrade, but a positive reiteration on video camera maker. >> the commercials for the game destiny, i don't remember led zeppelin ever licensing a song and they're using the "immigrant" song. and apparently the game is hitting $500 million in sales in just the next couple of days. it's a multi-million-dollar marketing budget. expectations are high. set around 25 bucks. >> getting an upgrade to fdr capital. >> shares have gained in the last year. the target is boosted to 37. what they're seeing is about 15% upside for hig, hartford financial. >> citi getting an upgrade for

huntsman to a buy. >> that's easy for you to say. >> why? what do you mean? what's easy for me to say? >> nothing, apparently. just met with management and came away confident. target gez to 29. about five bucks of upside. the eu just cleared huntsman's buyout. >> okay. under the radar name of the day is one that we have talked about before. auxilium pharmaceuticals. >> it's not that under radar. jeffreys raised their target to 32. where the stock is now, they see 55% upside in the stock. the bad news is it's based on restructuring. unfortunately the way wall street often works is bad news sometimes means good news for investors. but look at the stock, that's been a bad news story for a long time now. look at shares of facebook.

nearly 78 bucks a share. the market cap is at $200 billion. for facebook. let's put that in context. because we like big number zblps for 200 million bucks you could essentially buy three ebays. facebook is worth nearly four times as much as starbucks. and you can almost buy seven netflixs. netflixi? >> okay. to put it in context even further, yesterday we were talking about apple, the biggest corporation at $600 billion market cap. which is so much bigger than even the next biggest which is exxonmobil at $417 billion. do you know what comes in at number three? have a little guess. >> it's going to be probably google. >> google. there you go. it's number three. so facebook has got a little way to go. two facebooks equals one google. california's drought is causing huge problems for the

rice growers there. the hugely water intensive crop could be down by as much as 35% this year. that's more than a billion dollars' worth of rice. farmers are planting less rice, therefore they're not hiring as many workers or buying and renting as much equipment. plus rice prices are going up for the rest of us. >> as mitch hedberg once said, 2,000 of anything is too much for me. if you think all the innovation is coming out of apple, you are wrong, my friend. there's a huge gathering in las vegas right now. jon fortt will join us with a special guest. >> plus microsoft spending $2 billion to get its hands on minecraft. is a company with one popular game and a couple dozen employees really worth that much? you might be surprised by the answer.

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with our comprehensive program. we just want to help everyone, everywhere, breathe a little easier. introducing cvs health. because health is everything. let's get a look at oil. some good nouz out there. above 90 bucks is still expensive historically. however, oil was well over 100 bucks a barrel a short time ago.

gas prices should continue to fall. paid $3.19 a gallon in new jersey the other day. >> it's only a matter of time it's $3 even. >> we told you there's a go-mart in virginia $2.99 a gallon right now. >> let's drive over to virginia to get our gas, shall we? >> it's a nice place. okay, brian. oh, okay. what do alan greenspan and carmelo anthony have in common? we will find out later in "the closing bell." but the tech giant microsoft is looking to buy mojang. do you know what it means in swedish? >> printing press? >> gadget. >> printing money? addictive game? >> okay. manager, director of fbr capital joins us now. great to have yo with us.

is this maybe a change of heart by the founder of mojang? mr. persson has been vocal in the past. or does money talk? >> i think in this situation money talks. with microsoft, they really need to step up their game on gaming, on mobile, on cloud. when you put $2 billion in front of the founder i think the story changes. and i think that's what you're seeing in this market. >> i will never sell -- how much? how many zeros? you know what? sold. i mean, does it matter to microsoft -- mandy's kids play it, my daughter is addicted to it. but does it make any money? >> $2 billion to microsoft is bread at the restaurant. what they're really focused on is more content, not just on xbox on that hardware gaming platform as well as on mobile. i think from microsoft's perspective, they need to step up their game, need more content, and at this point needs

to go aggressive, needs to get some marching orders to the troops. it looks like xbox is here to stay relative to this acquisition. >> i get that they want more content. but content like minecraft could be just one more of these fads. some people say candy crush is past their prime. there are others out there like farmville. minecraft has been hot. my 8-year-old likes it. my 11-year-old is already moving on. it might be a fad to them. >> that is a fear of investors today that, you know, you definitely don't want them to just be spending their good money going after bad. i think in this situation if it's distributed correctly, open platform, and they start to put it into that console especially on the mobile front, that's key because that speaks to the cloud strategy. and you definitely see more

energy because you finally have a ceo that's looking to skate to where the park's going rather than steve ballmer who basically missed every trend over the last decade. >> to your point, dan, even if minecraft never sells another copy which is highly unlikely, i'm making a point, you say it won't matter. it's a way to get publicity and get some 10-year-olds onto the microsoft platform. >> that's what it's all about. it's about microsoft courting youths. they need to go aggressive. you're seeing it on the store front. you've seen it on the surface. they need to aggressively go after that trend. they cannot miss out on another trend. there's a window of opportunity here. they need to go after it. and i view this acquisition just a small piece of the puzzle of a broader acquisition strategy on big data, on cloud, and that speaks to what the stock is doing what it's doing. because investors are finally buying in after ten years of

pain that they saw under steve ballmer. >> you know what the stock is doing? up 25% this year on top of a great year last year. thank you very much, dan. >> thanks. speaking of the cloud, s.a.p. making a big push into mobile and the cloud. this year's show in las vegas, let's get down to jon fortt live with the ceo of s.a.p. >> here with bill mcdermott of s.a.p. you came out with a release saying you'll be supporting similar to what you did last year. this year in the enterprise apple and ibm have made this deal. is it important to get out there and show the customer you're on mobile and ios? >> absolutely. but it's also important to recognize there's so much room in this market. and we're happy for apple and ibm. they're both great partners of s.a.p. so today we announced samsung and erickson.

but we also partner very well with apple and ibm. we're an open player, have an open platform. we build applications on it. and we change the way businesses run. >> let's talk cloud and big data. i understand you're involved in maybe nfl draft day with your software. tell me how that works. is the cloud at play here as well as analytics? >> absolutely is, jon. >> we have marshall faulk, hall of fame running back and nfl commentator doing a great job. he basically has a draft tool that connects s.a.p. for all the realtime insights. so it's in memory and it's fast. instantaneous. it's a cloud-based application that runs on his ipad. so on draft day he's always one step ahead of the other commentators on who's up next, what position is being chosen, and who's the best value for money using s.a.p., the mobile device connected to the cloud. we call these context-driven applications.

>> now, developed markets are doing a lot better enterprisewise than a lot of people might have expected a year ago. a lot of the stocks are doing pretty well. yours has had a nice upswing over the last few weeks. is that going to continue? do you continue to feel confident about how the rest of this year and the beginning of next will play out given all the geopolitical shocks we've had? >> i'm confident. i see companies that innovate that have an outstanding strategy and that have expressed desire to grab onto the global market opportunities are going to do really well. we made all the right investments whether it's in africa, the middle east, southeast asia, china, and our mature markets are performing very well. s. s.a.p. is a confident company and are out-innovator others in the space. >> i want to ask you about android wear, google glass. you've got an augmented reality application that technicians are going to be able to use in the field to get better information

realtime information from experts on how to fix problems. how big a market do you expect that to be? >> this is massive. i think context aware applications that are mobile will change the world. and why do i think that? because you're completely reinventing business models with this? the insight that they get. but think about it from the ceo's perspective. now i do my job better, but they have a business network working for them from machines computing. augmenting the supply chain to preventively maintain and reinvent services, business models. so i think context aware business applications that change the way companies run and make the lives of workers better is probably the biggest market i can think of as long as it's running on s.a.p. >> all right. i got you. context aware applications and wearables certainly have a place in the enterprise. bill mcdermott, thanks for joining us. >> thanks, jon.

for more go to cnbc.com/te cnbc.com/techdrivers. on the way out he talked to our kate about jaime dimon. >> plus the fallout continuing for the nfl. is it time for roger goodell to go as commissioner? that's next. in a world that's changing faster than ever, we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

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he's been called the nemesis of the big banks. big banks but leaving the justice department and spoke to our very own kay kelly about the pursuit of the banks. what did he tell you? >> thanks so much, mandy n. an interview yesterday, departing associate attorney general tony west unapologetic about the tough line taken with some of the u.s. banks in terms of mortgage fraud settlements he helped broker, together amounted to $37 billion in fines and also consumer relief moneys altogether. that's $13 billion in the case of jp morgan and $7 million in the case of citigroup and nearly $17 billion more recently with bank of america. sums of money he argued entirely appropriate. >> yes, we are tough but we

really do strive to be fair. and who knows what the few cher holds in terms of what other situations might come up? but i think, you know, at the end of the day, you know, most folks are patriots and they know that a strong economy is something that we all benefit from and to the extent to act in ways when called upon to make that a reality, i think people will answer that call. >> so in regards to the often-raised question, have the banks been overpenalized for purchasing distressed banks at the heat of the financial crisis, merrill lynch and created the liabilities for them, he says it's appropriate and people may step up in the future if crisis warrants to make deals like that. one other thing, given that tony west was negotiating with some of the toughest lawyers and bankers that money can buy with the wall street firms, i wanted

to know what one of the most memorable moments was. he said a phone call from jamie dimond before the settlement in november of last year where jamie said, you know what? let's get together. the principles need to talk in the case an although we haven't met, i like to create a better dialogue. >> thank you very much. appreciate it. the nfl under fire for its handling of the ray rice assault case, in an interview last night, nora o'donnell asked nfl commissioner goodell if he had seen the video of ray rice punching his wife in the face. >> we had not seen any videotape of what had happened in the elevator. we asked and never granted that opportunity. >> now, in the meantime, the calls for roger goodell to either step down or forced out as commissioner of the nfl is growing. joining us is mark stevens and the author of "your marketing sucks." that's a very clear title. also with us, mitch epner and

his expertise is sports law. mark, you think that goodell should stay. why? >> well, i think that he should stay because we're talking about a brand. brand is big issue which is the nfl so you have a brand in turmoil. he leaves, you have even greater turmoil. all brands have ebb and flows. we have seen a lot in the nfl in recent years. if he goes, the issues around the nfl are not going to go away completely. you have a unique organization so i think to conflate the issue now is going to be attic for the brand. in two weeks, this will not be a story. i mean, that's my guiding principle on this. >> waiting two weeks for something like this. >> in two weeks he will -- i doubt he will be the commissioner. there are two possibilities after yesterday. either he lied or was being really economical with the truth when he said that he and his front office hadn't seen the videotape and if it turns out

that like an outside consultant saw it, he will be fired for having lied or ran the most incompetent investigation conceivable because they knew there was a videotape from inside the elevator and they went ahead in the most high profile case possible and they exacted insufficient punishment and he should be fired for -- >> but as a lawyer -- >> -- failing to protect the shield. >> you know plausible deniability. >> i also know the very key phrase here is willful ignorance. >> also not litigation. we are talking about the perception of a brand. and my sense is that when you have a brand issue, whether it's a company, traditional company or an organization like the nfl, it is forgotten if two weeks and he's going to stay. and they cannot afford another disaster right now. and the next guy will make some mistakes, as well. so the best thing to do --

>> isn't the disaster him staying, though? >> i don't think so. >> 21 of 32 nfl teams according to slate.com have an active player or did at the beginning of this year who'd been charged for domestic abuse or some sort of violence against women or sexual assault. >> right. >> 2 out of 3. >> years ago we had michael vick with dog -- canine assault. >> went to federal prison for three years. >> i know. the issues will not go away. not an organization like this. not a bunch of clergy people but guys playing -- >> bring in somebody that doesn't let this keep on happening. mitch in. >> well, i agree with mark that the issues will happen but right now goodell created his personal brand as protecting the shield. if you're going to make your brand be i'm holier than thou and we are going to clean up the league, you better be holy and he just isn't. he's part of the problem now. and if he's not part of the solution, he's going to be gone

and going to be gone quickly. >> no one's holy. no one's holy and had a report a moment ago, listening about jamie dimond. should he have been fired? >> some say yes. >> yes. >> speak your language, infinitely more about it than i do, but doesn't roger goodell prove a hindrance to the brand at this point? >> it will be forgotten if two weeks. >> okay. okay. assuming it's not forgotten and assuming he stays, take your scenario he does stay -- >> say he punched the woman. if he punched the woman, different story. >> what does he need to do to protect the brand? >> he needs to create a part of the nfl that clearly and actually demonstrates that it's really interested in the domestic violence and a program for that. once he put that is in place and it works, and stringent rules around it, the brand is protected. i'm telling you in three weeks from now is another issue about something completely different.

cocaine. >> but is the reaction that matters? yes they will happen. yes, may be -- >> rolling series of things. >> reaction matters. >> mitch, we are not trying to blame roger goodell for what the players do. cnbc is not responsible for stuff ploes do on their own time. he said -- the nfl said new jersey state police did not have the video but it's the county police. they didn't know who was in charge of the investigation. >> let me be really blunt on this. the reason mark is wrong is because the things he said yesterday do not pass the straight face test. >> yep. >> going to the prosecutors to get grand jury materials is like going to a priest to find out what's in confessional. you go to the defendant. >> thank you, mark and mitch. appreciate it. >> sure. we got to wrap it up here. "closing bell" after the short break.

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welcome to "the closing bell." >> today, the stock market trying for its first winning day of the week. after that pretty big decline yesterday, kelly. plus, apple's looking at a strong day. stock surged before the big event in cupertino and faded otherwise finishing lower. we'll see if apple hol t