burner. the s&p is only up very, very slightly. the dow is up 42 points. it's up about half of the highs of the day. alibaba up by 34%. 91.19. so doing very well. welcome to the "closing bell." what a week it has been. our special coverage of the alibaba does continue. i'm kelly evans here at the new york stock exchange. >> and i'm bill griffeth. we got here so we could watch a spectacle of epic proportions. the stock opened at 11:53 a.m.

and it's been trading around that price right now. i should point out, on this incredibly newsy day, as you've been hearing, roger goodell, the nfl commissioner will be holding a news conference. he's expected to talk about the domestic violence issues that have plagued the nfl for the last couple of weeks to perhaps talk about an overhaul of the personal conduct code in the nfl and talk about the work that they are doing but we'll get to that as soon as the news conference gets under way. >> we will be, with the apology of the choppy nature of what is happening in the markets today. >> this is where it all happened today. we're waiting for the pricing action to begin. >> the dust has settled. this area was wall to wall, shoulder to shoulder with hundreds of people this morning.

but stocks holding up pretty well. 92.70 is where it was traded but, remember, when jack ma wanted to personally choose all of the shareholders, that meant they would be choosing people that they thought would be holding on to the stock. to create a stock, you need somebody to sell. they couldn't find any sellers for about an hour. what scott said, chasing a seller and bob pisani said, only one of them? >> there's a couple of interesting things here. one is, the execution of this i'm po, even though they took a couple of hours to get it going, the that that is more fundamental is how much trust should they have in this being a company? however you want to describe it. i keep thinking of the drudge report which has communist dazzles wall streets as its headline and there will be a narrative of, hong kong wouldn't

take this ipo. the new york stock exchange would. how much can we trust alibaba. >> because of the ownership structure but it's not all that unlike the structure we allow for other media companies here. i was talking to some of the underwriters here on the floor and i said how long have you been working on this? and they said just here in new york? and there was obviously a long time coming to try and make it go public in hong kong. when that wasn't an option, they obviously came here. look, this is a process, this ipo process that is very transparent with the fcc. one thing is for sure, the prospectus and documentation at the very least, you can bet your bottom dollar that the fcc has gone through with a fine-tooth comb and made sure every single one of those lines is accurate. what will be different is when the company reports earnings and when you're on conference calls with the company, how forthcoming are they with

information? do they dodge the question or do they actually answer it? those are going to be some of the more telling interactions with the company on that front. not just the paperwork because that's something that accountants look at, that the fcc looks at and it checks out. >> a lot of people have questions about will this go the way of a facebook, of a twitter? even though the first day of trading has gone well. you mentioned an important piece that plays into the perception and trust around the name. >> it did trade as high as $99.70 above that 92.70 figure. it's back to the low 90s. so theoretically, somebody out there who bought at $99 has a 10% haircut they've already suffered at this point. >> yeah, but that's not to say that they are going to sell out tomorrow and be talking about how much money they lost. remember, these are ipos that even if you're not a long-term investor, you want to hold this stock for five or ten years , i a year these ipos double in

value. facebook doubled in its first year. that was almost an afterthought. twitter doubled in its first year. visa quadrupled in its first year. that doesn't mean they can't create more going forward. >> bob pisani is doing a great job, once again, robert, to show us the transparent nature of the process as they try to match those buy and sell orders. a pretty electric process. >> yes. and what was interesting was to watch the price indication. we started about 9:50 and the first price indication was 82 to $85. as kayla noted, there was not really any sellers. very quickly they stepped it up into $3 eintervals and then we got to $2 intervals.

we were 90 to 91 and 91 to 92. finally about 11:00, we got serious. about 11:45, we were talking about $92.60 to $93 and finally we settled on the $92.70 opening price. a lot of people ask why didn't jack ma ring the bell? mr. ma is very much a believer in the power of eight. i don't know if you can put up the full screen, but eight alibaba customers were on the stand. the important thing is, that's the symbol for luck and prosperity. also, 8.8% is jack ma's ownership. september 18th is the day that alibaba priced. the price was $68 and a lot of people down here thought the stock might open at 88. they couldn't do it because there weren't enough sellers at $88. i'm sure mr. ma would have liked that but in the interview he

specifically said he thought 80% of the people in china could be successful as entrepreneurs. so again, mr. ma very much behind the concept of the power of eight. one of the problems that people have down here, one of the only problems, it's not going to be included in most of the etfs and indexes because it's not eligible. not in the s&p 500. it will be in one small etf, a couple of them. it's run by renaissance and also one of the crane shares etfs but mostly, for the most part, we're not going to have any big representation of alibaba. >> exactly. we've asked our guests about this, bill, to go back and change it to allow alibaba to come into the indexes. let's bring in nicolas for his thoughts on the ipo. nicolas, what's remarkable about the alibaba success, when they got into the space, ebay had 80% of the market in china and alibaba had 8. now the numbers have flipped.

how much pressure is on jack ma to keep up this performance, given where the price of these shares is trading? >> he's got an incredible amount of pressure. he said we owned 90% of the market and jack ma said, this market is not anything yet. it's going to be hundreds and hundreds of millions of people. nowhere near where it's going to be yet. >> what about the lack of retail participation in all of this? first of all, the hand-picked shareholders but also, this is anecdotal, i realize, but we've been doing polls asking people, would you buy alibaba and a vast majority say we wouldn't want to do that and the access that the public may have to this could be in question as well. >> roughly a billion dollars or a fourth of the share were offered through some sort of retail conduit. that being said, we did a poll

that 88% of viewers or respondents did not know what alibaba was. when we're introduced to the u.s. consumer, do we want it to be via an ipo or via their experience using this item and they preferred the latter. facebook had such a black eye because not only did the trade go poorly, there was so much retail investment in that, that's where the pain was felt and they wanted to feel that. >> i point out, bill, that right at the very open, the biggest buyers at the open were some of the wholesalers that were out there that at least we heard were very, very big orders and it would be companies like ubs, citadel and all of those represented retail. at least early on there were very, very big, big, big buyers for the retailers. >> we should also point out, one of the sidebars we've been following is yahoo! which owns

20%, 16%. what do they own of -- >> 22.5%. >> obviously a major shareholder. interestingly, yahoo! is down today. >> yes. and now the question is, what is the future for that company? >> yahoo! is always -- they have had this company since 2005. it was a huge bet a the the time. their hope was that they would be able to take this money and go into the core. shareholders don't really think that marissa and yahoo! is something to bet on. >> yahoo! and alibaba the most actively traded stocks. >> and there's a question, bob, i'd like to hear your thoughts on this, the alibaba mania, we

can't ignore the fact that they are looking at record levels across the indexes. it traded well today and opened well today. there's tremendous demand and some have criticized and going back to the point of trying to find the sellers this morning saying the price didn't even matter. are we seeing exuberance? we're going to look back and say, we should have known what was ahead of us. >> i think alibaba is a very particular case of a sort of intense desire to buy into the chinese consumer market at any price because mostly china has been financial stocks and commodities. this is the one pure play. next week is where we get the test to answer your question about the ipo market. $7.5 million in additional money, on top of the 25, is going to come next week. we'll see citizens financial bank and two big energy companies. let's talk about this exactly at this time next week and we'll

see how those price and we'll have a much better indication of whether or not we're at any kind of market hop in ipos. >> i know i mentioned visa before, guys, but i think it's an important case study because that company went public in march 2008. not particularly healthy time to go public. >> especially for a financial-related stock. >> especially for a financial stock when it was owned by the banks but that stock quadrupled in its first year. if they feel the fundamentals at this value are good, they are willing to put their money there. >> one final question, what happens? we know china is already slowing. we know that's an infrastructure thing and what happens in the months ahead if china does slow more precipitously than people think it will right now? >> it's all about consumer spending for alibaba. and so people over there feel like they can't go on 11/11,

which is their black friday. >> it's something we've got to keep in mind, bill, as we watch the trade here. >> we're seeing it as a proxy for the chinese middle class. that's for sure. nick carlson, thank you very much. kayla, great job as well. we'll follow alibaba into its final hour of trade here. you can see it's trading around $91 a share at the moment. also waiting for this news conference in midtown manhattan. roger goodell, the nfl commissioner set to announce the overhaul for players in the wake of the domestic violence issues that have been plaguing that league for the last couple of hours. he will be holding -- making a statement and taking questions from the media. we'll be taking you there live coming up in a bit here. >> the dow is adding 52 points, up to 17,318. s&p up 2.5 at 2013 for the time

being. the nasdaq, though, in the red bill. yahoo! not helping. much more on the ipo story. people were lined up not only to watch what was happening here at the new york stock exchange but also around the country to get their iphone 6 and 6 plus. >> around the world. >> exactly. saw tim cook there at the apple store in new york shaking people's hands. much more on that, apple's iphones are hitting store shelves as we speak. much more when we come back. so you can enjoy that second home sooner. know the right financial planning can help you save for college and retirement. know where you stand with pnc total insight. a new investing and banking experience with personalized guidance and online tools. visit a branch, call or go online today.

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. but now i will get it right. >> nfl commissioner roger goodell. let's listen in. >> first, i don't expect anyone just to take my word. last week, i asked former fbi director robert mull letteller. we all look forward to his report and findings.

i promise you that any shortcomings he finds in how we dealt with the situation will lead to swift action. the same mistakes can never be repeated. we will do whatever it is that is necessary to ensure that we are thorough in our review process and that our conclusions are reliable. we will get our house in order first. second, and most importantly, these incidents demonstrate that we can use the nfl to help create change, not only in our league but in society with respect to domestic violence and sexual assault. we are taking a number of steps. on august 28th, i said that the entire nfl would receive comprehensive information and resources and support systems for victims on domestic violence

and sexual assault. we will re-examine, enhance, and improve all of our current programs and then we'll do more. earlier today, each nfl club and all of our league office locations received information about advocacy and support organizations in their communities. everyone will participate in education training programs in the next month. these programs are being developed by a top group of experts. some of them were announced earlier in the week. we will continue to identify and add expertise to our team. and we will ask the nfl players association to help us develop and deliver these programs in the most effective way.

third, we recognize that domestic violence and sexual assault exists everywhere in every community. economic class, racial and ethnic group, it affects all of us. these are problems we are committed to addressing. but we cannot solve them by ourselves. law enforcement and families are the cornerstone to addressing this problem. for our part, we can add and we will do more. to begin, we have entered into long-term partnership with two leading national organizations. the national domestic violence

hotline and the national sexual violence resource center. the hotline received an 84% increase in their call volume just last week. they did not have the resources to reach even half of those calls. they need our help. and we are providing. we strongly, strongly condemn and will punish behavior that is totally unacceptable. domestic violence, including child abuse, sexual assault, irresponsible ownership or handling of firearms. the illegal use of alcohol or drug. these activities must be condemned and stopped through education and discipline.

our standards and the consequences of falling short must be clear, consistent, and current. they must be implemented through procedures that are fair and transparent. this is a central issue today. i'm here now because our rules, policies, and procedures on personal conduct failed to ensure that this high standard is met. but i want to make it clear, these are very complex issues. our country has a legal system that everyone needs to respect. when there is evidence of misconduct by anyone in the nfl, we need to consider when to act and on what evidence. everyone deserves a fair process. you know i feel passionately

that working in the nfl in any capacity is a privilege. something we must earn every day and must never take for granted. the vast majority of players, coaches, owners and employees in the nfl stand tall. not only for their role in the game but for what they do in their communities. to get all this right, we will bring together our players and their union representatives, coaches, owners, and outside experts who could help us set the right standards and identify the right procedures. i have discussed these challenges with the players association executive director smith. he shares my view that domestic violence and sexual assault has no place in the nfl. he and i will meet next week to bring together experts that help us establish and live up to the standards that our fans deserve

and that we set for ourselves. they will address how to balance due process rights for those accused with the need to hold our personnel to the highest standards. they should also consider the current system for determining violations, including my role in the process. there will be changes to our personal conduct policy. i know this because we will make it happen. nothing is off the table. let me say it again. we will implement new conduct policies.

they will have a set of clear and transparent rules for owners and players. my goal is to complete this by the super bowl. football in the nfl have always changed and improved. we drive changes in the game through our competition committee. it reviews and updates the rules that govern the game on the field. through this process of evaluation and reform, we keep the game competitive, entertaining, fair, and, most importantly, do everything we can to protect our players on the field from injury. we go to enormous lengths to make sure players, coaches, officials, fans our broadcast partners fully understand our playing rules and how they are enforced. that must now be our motto when

it comes to personal conduct. so like the competition committee and other league committees, i'm establishing a conduct committee to review these new rules in the months and years to come and ensure that we are always living with the best practices. there is no reason we cannot be as transparent and as effective on these issues as we are with the game on the field. i believe in accountability. i understand the challenges before me and i will be held accountable for meeting them. every day so many of our players, coaches, and staff are doing tremendous things in their communities. i couldn't be more proud of how they are using the opportunity to help make a positive difference. today, i ask everyone as part of the nfl to join me in making

positive and significant changes going forward. i'll take your questions. >> mr. goodell? >> yes. >> peter alexander from nbc news. appreciate your time. >> sure. >> if any of these victims had been someone you love, would you be satisfied with the way the league has handled this crisis and what would you say to them? >> i'm not satisfied with the way we've handled it from the get-go. as i told you and this statement indicates, i made a mistake. i'm not satisfied with the process that we went through. i'm not satisfied with the conclusions. we made changes to our discipline. we acknowledge the mistake, my mistake. and we said, we're going to do better going forward. we have a set of very complex issues that we have to deal with. that's no excuse.

what we need to do is go and get some experts help us, how do we do this better? how do we restructure our personal conduct policy and expect the kind of behavior we expect and to make sure that we educate, we train, we do everything possible to hit that mark for all of us. and when we don't, there will have to be consequences for that. so i'm not satisfied with what we did. i let myself down. i let everybody else down. and for that i'm sorry, as i mentioned earlier. but that's what we're going to correct and that's what we're going to fix. >> rachel nichols? >> roger, you've had pretty extreme unilateral power in deciding discipline but as you've said a few times, you've gotten it wrong in a few cases and that tends to happen when there's no checks and balls. how willing are you to give up some of that power and do you feel it's the right thing to do? >> as i said in my statement, everything is on the table. we're going to make sure that we

look at every aspect of the process of how we gather information to make a decision, how we make that decision and then the appeals process. and all beof that is on the tab and it's important that we want outside experts to give us some perspective on and see if there's a better way to do it. we can't continue to operate like this. >> also, you've mentioned on tv last week that you guys checked and tried to get the ray rice video and any information. the at llantic city prosecutor' office said they don't have any information about asking for that information or video. can you give us the trail of how guys did that investigation so people can know really what you put into it? >>. >> well, certainly. our security office works with law enforcement. they are cooperative. we gather almost entirely all of our information through law enforcement. and that's something else we're

going to look at, rachel. is that the right process, should all of our information be gathered simply through law enforcement? we understand and respect what they go through and the job that they have to do and there are certain restrictions that they may be under. >> [ inaudible ]. >> we asked for it on occasions. we asked for it on several occasions over the spring all the way through june, from february through june. i'm confident that our people did that and so that's something that we'll have to discuss regularly with them. >> commissioner? >> fox sports, commissioner. i was in minnesota on sunday and saw a mother with her two kids, both wearing adrian peterson jerseys and she said, i'm conflicted about this. i don't know what i should do. he's our favorite player. obviously we have a similar situation in baltimore with ray rice. what's your response to the mother with peterson jerseys and

doesn't know what to tell them? >> well, the first thing is that we're like the broader society in several ways. we're like a microcosm of society. we have a lot of young men, a lot of individuals that play or coach or executives, other individuals in the league that they make mistakes. and that is something that while i'm disappointed in what adrian peterson was involved in, we need to know all of the facts. it's tragic. i have two daughters who are 13. i think we have to allow the facts to proceed but the important message i think for all of us as parents is that our children are going to make mistakes. they need to learn how to take responsibility and be accountable for those mistakes and deal with those and that's something that i and my wife

jane, we work very hard on with our kids. when you make a mistake, be accountable for it. >> commissioner, commissioner, cbs news. in 2012, you suspended sean peyton for a year. you said ignorance is not an excuse. a lot of people think you're not holding yourself to that same standard. have you considered resigning at any point throughout this? >> i have not. i'm focused on doing my job and doing the best to my ability. i understand when people are critical of your performance but we have a lot of work to do. that's my focus. we've been busy in the last couple of weeks. we have results to show for it. we've talked about some of them in my statement but i'm proud of the opportunity that we have to try to make a difference here and do the right thing. we've acknowledged that we need to change what we're doing. now we have to get to what are those changes going to be.

>> there have been a lot of high-profile, high-level calls for your resignation, following up on that question. what would you say to those people? why do you feel you should be able to continue in this role? >> because i acknowledge my mistake on august 28th. i said we didn't get this right. we're going to make changes. we made those changes, are makes those changes, we have a lot more work to be done but we're moving in a very important direction by getting expertise to say, how do we do this better? we're all as a society having difficulty being able to deal with this. the nfl has to take care of his house, as i said, and that's my focus, how do we do this better as the nfl and make sure that we keep everything on the table. from every aspect from the collection of evidence to how we

go through the process and to who makes the determination, what the appeal process is and we'll make those changes that i believe will be beneficial to the league long term. in addition, i think we can make some changes and i think they will be positive in the domestic violence, sexual assault areas, child abuse. we better get our house in order first. >> fox sports. >> yes. >> you mentioned due process in your statement. right now there's a lot of inconsistency. adrian peterson is not playing, jonathan dwyer is not. you've got some guys on the exempt list and some guys on the nonillness list. i know you want to take a look at due process. it's a bit of a slippery slope. how do you plan to handle that? do you have a list that you put these guys on? >> you're highlighting exactly the point, mike. that we need to change our policies and our procedures and

we need to get some help in trying to identify how to do that. we have state laws that are different from state to state. and even locally. we need to make sure that we have looked at when the nfl should be involved in the investigative process. we need to know how much reliance we should have on the law enforcement information. so you're highlighting exactly the issue, that we do not have a clear and consistent policy that allow us to deal with all of the different issues that are arising. and that's why we talked last month about, we need to change our policies and we need to get some experts to help us deal with some of those issues that are very complex about due process and making sure that we allow our employees and the opportunity to be able to defend themselves but also make sure we're maintaining the integrity of the league and what we're doing. we have an obligation there.

and we're prepared to do that. and we are going to do that. >> in your interview almost two weeks ago, you said ray rice was ambiguous and how you felt in your mind happened in the elevator differ what we saw on the video. >> first off, as i said, we've got new information from the first time i met with him to and it's not sufficient, it was clear that was an act of domestic violence and inconsistent with what he described happened. when we had that new information, we had the ability to say we're going to interject

and take additional action and that's what we did. and that was not consistent with what he said. >> commissioner, what did he say? >> well, the one issue is that this is a matter of appeal. as you know, the nfl p.a. has appealed this. it's a matter that is going to be taken up in appeal. so without prejudging and without getting into it and i'm telling you right now it's inconsistent with what he told us, what we saw on that video when it came out roughly ten days ago but we have a process, an appeals process. that information will come out at the same point in time.

>> peter, i may disagree with you. i think that's something that the appeal is going to have to determine. it's the fact that there's an appeal and they may be able to raise certain issues in the context of that appeal. that's a decision that they have to make. i can't make that. >> commissioner to your right? andrew rosario, you mentioned the two women's groups that the nfl will be working with. if the 32 owners had a vote today about whether or not you should keep your job, what do you think the results would be? >> well, that's a hypothetical which i can't deal with. we had 20 owners in the office this week for prescheduled committee meetings in preparation for our league meeting next month and we're focused on getting our work done and so are they.

what we saw in our contact is that because of the attention this issue has brought by the ray rice matter and potentially other issues coming to light, this is something that became a need for what our experts tell us is happening in the community. what is happening is that there is clear that there's a need for people to seek help in all communities and that's why they saw a spike in this. what we want to be able to do is to be able to help provide you the assistance to them and that was something we could do and we said to them, we want to be involved. we want to help. and we will provide resources, assistance to be able to make sure that you can get the person there to be able to answer those questions and we're pleased to be able to do that. we should be providing that kind of assistance. >> espn.

>> yes. >> the a.p. report about the video being sent to your office cites a voice mail wherein someone confirmed receipt of it. with that in mind, how do you explain that amid the league's denials that they have the video? >> well, dan, that's exactly why, as i mentioned in my statement that we hired robert mueller, the longest serving director of the fbi to make sure that that individual, robert mueller and his staff, they go through and they find out as many facts and they possibly can and report. he's independent. i don't know where he is on that but all of that information will be something that director mueller will be dealing with. >> you've been clear throughout your tenure that you would be hard on people who committed crimes. why do you think the domestic violence crimes, such as ray rice, gave you such a difficult time and weren't treated as harshly as some others were. >> well, as i said to you early on, we made a mistake in letting our standards fall below where

they should be. we should have had our personal conduct policy reviewed more frequently to make the changes necessary to deal with the issues that have changed. we last changed that policy on a broad perspective in 2007. it's had a positive impact on overall number of criminal activity. but what we need to do is go back and say, okay, we're in a different age now, different issues and different challenges and let's go back and figure out how to do that again and do it in a consistent and fair way and that's what we are doing with the outside expert. >> was there something about domestic violence crimes, these specific ones that made it more difficult for you to adjudicate? >> well, i think that the policy itself was, again, not up to the standards, the standard discipline for that was way below what it should be. and when we saw the first video, it was horrifying.

and we went through the process and we disciplined them consistent with that policy. that wasn't sufficient, as i said. that was a mistake. we had to go back and fix our policy in the short term and say, this isn't sufficient discipline. we met with a variety of experts on this. we came to a conclusion of what the discipline would be, at least as a standard with aggravating circumstances that could allow us some flexibility and also that we could banish on a second offense. and now we need to figure out when the nfl should get involved in a particular situation, with law enforcement, with the criminal justice system and how do we make sure that our policies will give us the flexibility to deal with state laws that varies, from state to state, and to try to get us that

consistency because it's more difficult, it's more simple to be able to make decisions on a fair and consistent basis. >> roger, peter king. >> yes. >> do you still believe that, to the best of your knowledge, no one in the nfl office has seen the ray rice video before it surfaced on tmz? >> yes. >> and secondly, do you believe that right now you have the full support of all 32 owners in the nfl backing you in what you're doing right now? >> peter, i believe i have the support of the owners. they obviously expect us to do a better job. and as i said to several, i don't like to letdown anybody, peter. myself, it starts with myself, i hold myself to the highest possible standards. so when i make a mistake and don't get something right, it bothers me more than anybody. i think the owners have seen that in me.

i think that they know that we have always tried to do the right thing. mistakes happen and i'm sorry for that. >> roger. >> yes. >> you've announced a new personal conduct committee. what will your role be with that and how are you reducing your role or power in these kinds of cases by having that committee? >> well, i think the personal conduct committee will have to develop further and who might serve on it. whether we'll have outside expertise that will join that. it's really about what are the standards, what's the conduct we want in the nfl? how do we want to represent ourselves? what's important to us as a league. and we want to make sure that we're holding ourselves to that standard and that would be the bright thing. we want to exceed every standard we set and that's what i expect this conduct committee to do, similar to the competition

committee, how do we improve everything that we're doing, evaluate it on a regular basis. if our personal conduct policy needs to be changed and updated, we need to do that. and i would expect that the conduct committee would be overseeing that. >> a number of sponsors have put out disappointed conversations in the last week. how many conversations have you had with your business partner, how many people have suggested that if things don't improve they will pull out and particularly anheuser-busch who put on a particularly disapproving comment. >> dan, i said that i'm disappointed in myself. i disappointed the nfl, our fans, our partners and i made

that clear on august 28th and clear since and i've made it clear to sponsors directly that we are going to do better in this area. there are things that we need to clean up in our house and make sure we get it right and we will. and now we have to deliver. >> were you close to losing this sponsor? >> i don't believe so. >> morgan brennan, cnbc. just to piggyback off of that question, what are your comments on the fact that procter & gamble pulled its partnership plug today? >> well, again, we understand that and what we said is that we're going to clean up our house. we're going to get this straight and we're going to make a difference and they want to see

us make that difference. and that is up to us to deliver on. they want to see us achieve that. they are not looking for talk. they want to see action. that's what we're looking for and why we are going to get it right and do the hard work. this is not a quick fix. this is something we've got to work hard at. and we will. >> mr. goodell? >> roger, you talked about establishing a personal contact committee and you said the goal was to be completed by the super bowl. what to be completed by the super bowl? because isn't this -- aren't these issues constantly evolving? >> yes. that's why we want to get to work immediately. the conduct committee is not the committee that we'd expect to make the changes in the personal conduct policy. what we have to do, and i spoke to dee about this, is reach out for experts in the area. so maybe in law enforcement,

some may be in the criminal system, don't experts in domestic violence or sexual violence or child abuse area and how we can improve the policy, everything from how we collect the information and to when the nfl is involved or do we have a separate investigation and those are all difficult issues to ensure that they have due process and make sure we are maintaining the integrity. >> so the idea to have the committee in place by the super bowl or makes those -- >> i would say that i'd have the committee in place by the super bowl. >> thanks for doing this. i wondered if you personally have ever been involved in an abuse situation in any capacity and then, secondly, i wonder if you anticipate any personnel changes, if not change in commissioner, how can you bring meaningful change and credible

change and change the culture and change the attitude without a change in personnel? >> the first answer to your question is, i have not. the second answer to your question is, we are making personnel changes. we announced several of them over the last week. we have more to come. we are looking to see how do we strengthen our team in this area? how do we bring the right voices to the table to make changes, not only what we do but more broadly. and so i expect personnel changes will continue. that's part of how we get better. it's part of how we evolve and learn from our mistakes and do a better job going forward. >> mr. goodell? commissioner -- >> yes. >> two things. one is, when you made the original suspension of two games, were any women advising you? and second, in your personal conduct policy that you were revising, are you willing to put that into the cba? >> on the first one i think

you're pointing out exactly what we're concerned about, is that we didn't have the right voices at the table. we need to get better expertise. as some of you know, we announced that lisa friel is joining us from downtown new york. she's going to provide a valuable perspective for us, particularly in this area and those are the types of people that we want to have part of our organization and part of our decision-making process. >> mr. goodell? >> out, out, out. what's going on? what are you doing? what are you doing? please! >> sorry about that. >> i had nothing to do with that. >> mr. goodell, miguel marquez

from cnn. there's a lot of confusion from fans out there about the mistakes that you say you've made. you talk about your investigative department at the nfl. regardless of what mr. rice said on june 16th, regardless of what was on the second videotape, on the initial summons, it clearly says that mr. rice struck janay with his hand rendering her unconscious. why wasn't it enough then to put this right? >> well, it was. and we saw obviously the original video and it was clear that a domestic violence incident had occurred and it was horrifying and that's why we took the step we did. we did the two game suspension and a fine of $100,000. it was not sufficient. and that's because our policies

have fallen behind. we need to get them in a position where the standard for that kind of violation has to be much higher. and that's why three weeks later we raised that standard and we said this is not going to be acceptable behavior and when it occurs, it's aggravating circumstances that we can consider and have additional penalties, if necessary. >>. >> commissioner, you mentioned robert mueller's investigation as key to solving all of these issues. i'm not going to sit here and discuss the integrity of the ex-director of the fbi, he's man of integrity. >> yes. >> but the firm has extremely close ties with the nfl. you guys paid that law firm recently to negotiate television deals. the president of the ravens worked at that law firm for more than 30 years.

why hire someone with even the appearance of pro pry tea. >> yes, that firm has represented us in the past but they have also been on the other side in litigation against the nfl. so this is a highly respected person in that position and his credentials are unparallel. >> even if he does a flawless investigation, isn't there an element here of your leaving the door open for doubt? >> rachel, unfortunately, we live in a world where they have had interaction with us in the past. robert mueller has not. law firms may have and his

ability reporting to the owners and i am confident that that will be the case. that's something that robert mueller is going to have announce. we are not disclosing or involving. he's running an independent investigation. he will meet with anybody he wishes, whenever he wishes. he will get full cooperation from me and everybody else in the building. i'm not making any comments specifically on the investigation. he has full access. if he wants to speak to anybody, he will do that. >> i have to go back to the video. you suspended ray rice after our video. why didn't you have the curiosity to go to casino yourself? >> well, two things.

we suspended ray rice after seeing the original video. when the second video came out last week, that's when we increased our discipline because that was inconsistent with the information that we had and it was new information. one of the things that i have said in my statement and i've said repeatedly. we do not want to interfere with the criminal investigation. in particular here, when you're dealing with the casino in new jersey, there are even more restrictions because it's ov overseen by the attorney

general. i would have loved to have seen that tape. should we do more to get that information in the future? that's a question i want these experts to do. >> we found out by one phone call. you guys have a whole legal department. can you explain that? >> i can't explain how you got the information. only you can do that. >> two questions on the -- right here, commissioner. two questions on the ray rice situation. first one, do you regret having ray and janay rice in the same room together when you met with them and, secondly, have you decided who will be hearing the appeal for ray rice in your office? >> i have not and on the second part of your question. i'll be making that decision shortly. someone else will be hearing that case. on your first part, yes, it's part of the learnings that we've had throughout this, is that there are certain proper ways of having those kinds of discussions when couples are going through domestic violence

issues. and we have learned that we shouldn't have them in the and that's something that we have learned from this and it's something that we will have going forward. >> you can't speak out about the individuals who have cases that have not yet been resolved but what do you say to the one individual in the nfl, gray hardy who has been convicted of attacking his girlfriend. what would you say to him? >> we're disappointed in what he was involved with which is alleged in the court records is he was convicted and then what happens when he appeals that is that it's wiped out until he goes to a jury trial. again, you're highlighting exactly -- can i finish? you're highlighting exactly the issue that we're concerned about, which is, when do we engage?

there was a conviction and it then gets removed until the jury trial and should we let that go all the way through? >> it's obvious when you look out on the field, a lot of these players, it's a diverse crowd. a lot of the players that have been highlighted recently are african-american. can you justify not having an african-american as part of that group of women that you've hired to look into sexual assault and domestic violence? >> well, that's not true. we have internal experts that have been working on this that are people of color, that are women and men and they have been involved in this process from the beginning. in addition, as i said in my statement, i said we will continually evaluate, do we need other resources, do we need

other individuals, other organizations? they can help us make -- >> [ inaudible ]. >> well, those three women are advising us as well as three full-time staff including an african-american woman who has been involved with this in and the nfl and the. >> all right. thank you. [ applause ] >> all right. s&p lower by a third. so the dow is going to have an all-time high. what about a day we had with

alibaba? it's first day of trading and largest ipo in history. a lot coming up on the second hour. have a good weekend, everybody. welcome to the second hour of the "closing bell." we want to get to reaction to commissioner goodell's news conference with our dominic chu. >> we were expecting some kind of news. we heard that there's going to be a player conduct committee and we didn't get a lot more with regard to what is happening with the investigation, how long it's taking and any progress. it's still ongoing. what was interesting to me is how many times he reiterated the apology about how long in the first place, numerous times the mistake that the first time around when he handed down the

two-game suspension to ray rice for the incident with janay. it was interesting to hear him go backwards again and say that all over again. he also pledged more trans transparency. overall, though, we didn't get that much new with regard to what is going to happen in terms of the investigation. of course, it's still ongoing and they are not going to go into details about what is happening. again, this idea, he did also address the idea of sponsorship. he kind of said, you know, you have to ask the sponsors for that. to his knowledge, none of the sponsors or the main sponsors and partners of the nfl, to his knowledge, are in any way going to pull their business yet although we have heard, of course, kelly, that many have expressed concern about how things are progressing with the domestic violence and sexual assault issues within the nfl. kelly? >> and do mcm, to that point, o

morgan brennan asked him about that. let's hear what he had to say. >> we've been in contact with our sponsors. several have statements that are inconsistent with what is going on here and we understand that. what we've said is, we're going to clean up our house. we're going to get this straight and make a difference. they want to see us make a difference. >> so dom, the sponsors clearly do want to see the nfl clean house, as he said, but it's not like they are really putting the screws on the nfl here. we haven't had a high-profile company yet walk away with the exception, at least to my knowledge of radisson and the minnesota vikings. >> that's right. nike and castro with just regard to adrian peterson and his situation. no big sponsor has yet to abandon, if you will, the nfl. there are strongly worded terms,

if you will, by all of the sponsors with regard to how they are monitoring the situation and it's important to remember, with the procter & gamble situation, this is one promotion that they are running with breast cancer awareness and also another promotion with regard to the use of pink mouth guards sponsored by crest and it's hard to say whether procter & gamble has abandoned the entire partnership with them. these are a couple of promotions being run right now. but is this a sign of future things to come? that's going to be a page turner for some, whether the sponsorships is being handled properly. the one sponsor that has made a step forward in this whole thing is verizon communications and their pledge, in essence, to stay with the nfl because they don't want to turn their backs on the conversation. they would rather stay in the nfl's eye and get in and develop the conversation and bring it to light rather than cut ties and move on. >> dom, thank you.

for now, appreciate it. commissioner goodell there from the nfl. we're going to turn to markets now. it's been a big week here. let's recap what happened. aside from alibaba listing and going public in likely the biggest ipos of all time, we've hit record highs this week. the dow ending up 15 points higher at a level of 17,280. the s&p did go out weaker. same for the nasdaq weighed by a weak performance here from yahoo!. here's a quick look. alibaba finishing up 25 points closing shy of $94. joining me on the set is nicolas carlso carlson. joining us from national along with kayla tausche.

along with jon fortt. from an execution point of view, it sounds like what the street was hoping for. >> it was a thing of beauty, kelly. compared to and everybody has got to compare it to the facebook ipo, which is the last really mega ipo we saw, twitter was big, too, and facebook was a lot bigger. here we have a picture of efficiency. jack ma on the floor and the pressure was on. but it went off without a hitch within the time frame that they predicted and in the price range of -- well, not exactly what a lot of people would expect. higher than that. and it closes above where it opened which is always nice. >> and now the questions, mike santoli turns to, any ipo like this, a high premium if you want to put it that way, there's a danger that they float back down towards earth. >> i totally agree, excusewise, they did find the right clearing price and they didn't stray much

from that. on twitter, the new york stock exchange listing, it went up to 70 from 44, went down below that to 30 and obviously it doesn't tell you where it's going to go from here. obviously it's within the range of what a lot of people are projecting on a fundamental basis and makes sense. i think the biggest risk is that it was going to become way too popular and get to a selling price quickly. >> nick, do you think -- is this a silly price? >> a totally reasonable price and people are investing for the right reason. >> they struggled in the beginning of the ipo and along comes alibaba and someone on the street has no idea what it is but there's that potential.

they've seen the potential of the chinese market, potential of all of that money and what they can do in the u.s. market with the e-commerce but to me it's a big question mark. what do they do next to become a truly global company? >> that's why you have the demand after the fact. >> kayla, was that unusual that jack ma decided who got what here? >> well, it is unusual to have an executive play as close a role in this election. often times the executive plays a role but then ultimately leave it up to the adviser to make the end decisions about who gets what in the final share building book. but i think that jack ma wanted to give back to people who had helped the company along the

way, that it had invested way before alibaba was the big bohemith that it is today and maybe it's overzealous. that's why you didn't see a lot of selling off the top. almost instantaneously as alibaba opened, it was due to retail demand. there was a lot of retail money coming into the second market with these brokers and they were selling nasdaq stocks that they sold as well as yahoo! to fund alibaba. >> let's ask dominic here. wh >> kudos to jon najarian who at 8:00 a.m. said, guess what, you're going to see a selloff in

yahoo! because the strength of alibaba will force people to use something as a potential hedge and probably used yahoo! as a hedge. if you're asking me where it closed, $92, the most interesting thing is yahoo! once again. we had eric jackson on last night that said there's a chance that soft bank comes in and buys yahoo! and pete brought this up. kudos to him. if alibaba turned around and bought yahoo!. i think for a lot of reasons yahoo! makes the most sense. >> thoughts around the table, should a lot of u.s. ten companies looking over their shoulders in alibaba? >> absolutely. i think that's really key for this company, is that they want a presence in the u.s. and they need a brand that people know. they have a lot of money now. of course, so does yahoo!. especially because they are an e-commerce company and they know

that it's the key. they are going to look for companies that have baked themselves in and maybe they are looking at ebay. i could almost guarantee that going to buy something in the u.s. just to expand and penetrate. >> they already are looking over their shoulder. but remember growing up there was a kid always running back to base? you could never tag him? it's kind of that situation with alibaba. its base is china. you can't if get in there if you're a u.s. company but jack ma can come right into your house, the new york stock exchange and go public. they are fighting over certain startups, who they are going to buy and invest in. nobody is quite sure what kind of moves jack ma is going to make. what kind of moves he's going to be allowed to make because he's still a chinese company. >> nicolas? >> alibaba has always been very sensitive about how they play america. it's called a cash split. the reason the deal didn't go

through is because it's going to be bad politics. >> so what have we learned from all of this? >> everybody has to figure out what you are and everybody gets impatient. they have a very big fast growing market where they are and they are going to be opportunistic importing other internet and mobile into china. >> quick word? >> there are four companies, facebook, google. >> apple. >> yeah. there are more now. alibaba you've got to add to the mix. it's becoming more global and it will be really interesting to see what happens next. you've got some of these very

equally matched huge tech players on the scene. we don't know. >> well-put. thank you all for now. thank you guys here. lance, appreciate it as well. be sure to stick around, everybody. catch guy coming up on "fast money" at 5:00 p.m. everybody was asking jack ma questions this morning. when he had a question, who did he go to? "fast money" steve grasso. you want to miss a second. coming up, investors going crazy for alibaba shares. if you think this stock has nowhere to go but up, think again. our jeff cox lays out three things that could go very long here. and apple fanatics waiting to get their hands on the iphone. how come apple gets these lines for new products but its rivals don't? and would you wait in line for a

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welcome back. cnbc getting an interview with alibaba jack ma. carl quintanilla asking questions about the company. >> what would you say to an american investor who is really interested in the company and the growth, opportunity but worries about interference from the government, transparency, books, regulators, we don't understand. how can we get around that? >> trust. trust the market and trust the new technology and the world is getting more transparent. >> well, reaction now from our panel along with cnbc's jeff cox. founding partner and chairman brian hamilton and first we want to ask our viewers at home will

alibaba will lower go to cnbc.com/vote. and weigh in on that segment. jeff cox, you have specific concerns here. what are they? >> kelly, my concerns go over the longer term. we just had that clip from jack ma and of course he's going to say trust, trust, trust. we've heard that song and dance before and it's never worked out well for u.s. investors. that's one concern that i have, will it work well in the u.s. the other one we've heard about, the cold governance issues, the opaqueness of the ipo. and finally, it's just the hype and we saw today the retail investors did not get much of this and those that got in probably lost money today. i think that, you know, yeah, everybody is going to be spiking the ball. it's an analogy about football but i think the story here is

yet to play out. according to my sources, we have a nine-month lockout. >> did you guys get in on this? >> you know what, we did have a secondary market. not today, though. i've got to disagree with what jeff said. if we look at history, not only did jack pull off the biggest ipo in history but this is the kind of entrepreneur we want to invest in. in 15 years, a rags to riches story, he's going to go on a buying spree. it's going to make all of the companies react. ebay, amazon, google, facebook, everybody trying to buy companies. what's going to help with india next, brazil, some of the other countries that are going to follow what alibaba is doing. and also have grass to riches story. >> understood.

>> amish, you can't look at it that way. i was already arguing with jeff. if you guys remember a week ago, i was very high on this company. here's what bothers me. last week they were thinking about going up to 60 to 68 and now we're up near 90. they are 26 times trailing revenue. they are 60 times trailing profit. i love the 44% net margin. love it. i like the company. we're going to trust in this company but we have to know that they have a different structure that american companies. so i'm a little worried about where their prices are at right now. why that huge jump in one day. i agree with jeff. >> coming out of china, he's seen as this populous guy who is

lifting people out of poverty. that's what the chinese government is supposed to do. he says to trust me. that also means to trust that he -- this is jon, that he should continue to push this particular brand of capitalism that he kind of gave birth to in an extra way here at the new york stock exchange. >> that sounds like a great advertisement but we're investing in a company, not just some guy who is a great entrepreneur. >> no, you're not. >> let me finish. >> kelly -- >> one at a time. >> with facebook in 2012, there was so much here saying we all know what happened. less than a year it doubled. twitter did the same thing. >> we're in a double market.

>> you think it's great, a 44% margin, but jeff is actually right. if you look at the regulatory environment of this company, it's got to make consumers beware just a little bit. i'm a little concerned simply about where that is at. >> it's two different things. >> i understand that. >> don't invest in something you don't understand and i don't think that as a marketplace that we understand. everybody knew that $68 was the wrong price. as far as valuation goes, i think ammish makes a good point. the numbers are questionable here and, you know, what's the transparency of this company? i think, again, from the long-term story -- >> look at the close growth in revenues. look at what they are doing. there's still growth in china.

this is -- if you could buy ebay, pay pal, also square, maybe throw in a couple other companies like amazon, that's what alibaba is. >> the chinese consumer and economy, this is the one that you want. this is how you got into it. they have more to do with actual business damages like -- perhaps their mobile exposure. >> buying at 60 and then a day later at 90. i'm not saying that the company is a bad investment. i'm saying at the right threshold, they are priced relatively much, much higher than facebook. they are not as high as twitter. >> at least it should matter in an efficient market. >> if more people at 68 wanted to sell. >> a long-term story, they are holding. >> about 54% people feel that shares will be higher in a year. not an overwhelming majority but

one nonetheless. pretty much like clock work today, what are investors betting on? nese middle class?e of an that's ahead. and orca kell larry elson shaking up the world. reaction to that with the ceo of red hat, jim whiteherst and apple's big day today. stay with us. [bell rings] ♪ time and sales data. split-second stats. ♪ its so close to the options floor, you'll bust your brain-box.

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welcome back. a big week for tech apple and alibaba. a change up in oracle and red hat purchasing an irish company, cash for a mobile app development play. joining us now we want to get his take on this week's news. jim whitehurst, the ceo of red hat is joining us. >> great to be here. >> first of all, what does the alibaba ipo today say to you. >> well, it just says that the market is going global. the thing that i'm excited about, they are a partner of ours in china, it's a massive opportunity in terms of the market but they also have a

defined business model that has quite high margins. finding that in tech, growing as fast as it is growing, is a fair thing. there's debates about its value and is it fairly valued here. if you look at the proven business model with demonstrated earnings, that's pretty attractive. >> jim, we know that you guys boosted it as well on the cloud front. in contrast perhaps to some of these struggles that jim cramer and others were citing on this program, because larry ellison is stepping aside as ceo. how quickly is that space changing? how much more do you guys anticipate of being here on the heels of this irish pickup? >> our fastest growing sector is the cloud revenue. it grew 45% and cloud revenue grew a lot faster than that. cios, even at the most stayed

european banks are talking about moving applications to cloud. so it's here and happening. it's happening a lot faster than people thought it would happen which is great for players in the space. it makes it more challenging for some of the traditional players who are losing that business. >> jim, i was just wondering, what did you make of the ibm, apple deal and enterprise more closely? >> i'm not sure it's going to be material in terms of revenue really for either but i think it's a statement that enterprise has gone to a mobile first strategy. people talk about cloud and don't realize how linked those are. we're in a shift from a big fast desktop or laptop with the light servers in a back room somewhere to the drivers allowing to have small applications on a mobile device. i think it's the apple/ibm deal

is a statement that enterprises for their customers and partners now are building their applications first in this new architecture. mobile application with a back end and big cloud data center. >> jim, speaking of deals, we see s.a.p. making this $8 billion plus trying to grow its cloud print. sysco has continued to be inquisitive. it looks like we might be in an enterprise consolidation seek kell. do you believe that's the case and are you getting and there is great cash flow and generally challenging into the cloud space whether that software is a service and then a strategic way to get into acquisitions. we've seen the traditional companies and i think we will

continue to buy technologies that help us do that and we are inquisitive. each one helps us deliver infrastructure or platform to our customers. >> it's such a fast-paced moving business. thanks for giving us a sense of what is going on there. jim whitehurst is the ceo of red hat this afternoon. >> thank you. >> what a day for alibaba. the stock trading pretty well day one. yep. closing 38% higher. 25 points. $93.89. that price gives it, by the way, a bigger valuation than jpmorgan and bank of america. should investors be looking at this as an e-commerce play or is this really about the future of china's massive middle class? that's coming up next. and would you wait in line for days, hours to be one of the first to get your hands on a new iphone? don't miss your chance to weigh in. cnbc.com/vote in just a bit.

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alibaba closing shy of the $94 mark. once shares hit the market this morning, what are investors betting on? china's middle class? joining us is future perfect ventures and cnbc crown tribute for john rutledge. welcome to you both. >> thank you. >> john, this is a story for people who go, okay, i understand the numbers. you take it or leave it at this price. what am i ultimately betting on here? what is the answer to that? >> well, we've talked a lot about the emerging middle class in china and the numbers are truly staggering. so right now they are at over 300 million, which is more than the entire population of the united states. so that's what we're starting with right now. and that number is expected to triple in the next 20 years. so as john rut said earlier this morning, this is just the

beginning of exponential growth. >> john rutledge, that may be the case but as you look back at other countries which are seeing the emergence of middle class, everybody goes through cycles. so should people be excited to bet on the long term when china is going on a slow-down cycle right now? >> well, the problem with this bet is there are a lot of layers in this onion that you have to peel. the china bet is fine they are growing slow but they are growing. people are moving and it fits the restructuring story from infrastructure and all sorts of businesses that are more regulatory things that make it pretty darn tricky.

it's really an interesting story but one that most people are not going to be able to get to the middle of the layers of onion so i wouldn't want people to take the bet and own the thing. >> what about jon fortt's point earlier which is that you can't overlook the extent to which you're betting jack ma gets this right and letting him get this right? >> that's actually true, if you're asking me. you know, the fact that this company could get this big and have an 80% market share says that jack has got friends in high places. that's a good thing. but that can change in china and people can fallout of favor so there's definitely risk there in the sense that there's more government involvement and there's competition to be taking in line to but basically you're making a bet on the growth of alibaba's customer which are young middle-class people in china and on the ability of that company to produce and show you

earnings that you believe. i believe in the first bet, the middle-class china bet. i'm more skeptical on the owning of the stock of a company located in china with all of that means in terms of the institutions. >> my question for the guests would be, so we're talking about a company that's been around for a while and established. are there disrepublican tupters. they don't have any platform level control over mobile, androids are apparently the big winner. is that a threat to alibaba in. >> they have captured this space that is very easy to disrupt. >> we have to remember that they are starting with 80% of the market, which is a substantial amount in the market. even if they lose some of that, if they are still going to be very profitable and have a lot

of revenue and they've really gotten into the mind and the infrastructure. so you take those, the payments, the relationships with the retailers, it's a formidable amount for any competitor to take on and i would not underestimate jack ma. he's shown himself to be a very, very shrewd businessman. >> the valuation is approaching an amazon valuation. that's a u.s. company that doesn't have kind of government clashes to factor in. so i'm wondering how you guys factor that in to the valuation. what happens to the valuation if we get another situation where jack ma says, i had to tweak the structure of the company based on a chinese regulation that i didn't necessarily foresee and that's going to affect existing shareholders. does the stock drop 15%, 30%? what happens?

>> last word, john rutledge? >> the problem is, those things can happen and an investor here doesn't know how leakikely it i for them to happen. i think you need a cushion in valuation in order to offset those risks and jack ma is a risk. when he talks to an audience, he can make them flap and fly. he's an immensely powerful communicator but he's a man and people get sick and people die so we've got the steve jobs, warren buffett key man story to work through. it's a great company, it's a great story, he's a great businessman but that doesn't mean you should risk your money. >> john rutledge, thank you for your perspective. have a great weekend. really appreciate it. alibaba has been the buzz of wall street today. what went on behind the scenes with the biggest ipo ever with

thomas farley coming up. and the lines have been long for the new iphones. who are these people? paid stand-ins? the psychology of standing in line is next. we needed 30 new hires for our call center.

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welcome back. an historic day here at the new york stock exchange. alibaba pricing at 68 and trading at almost $94.

let's bring in tom farley, group president here at the new york stocks exchange to wrap up what most say is pretty fair sailing. >> thanks, kelly, for having me and also to take a step back and say, this was a great day for alibaba certainly and then a company you can root for. it was a great day for the new york stock exchange but really capital markets generally in the u.s. and globally. but the system worked. capital formation worked. this was a company that came to market with a large ipo and will invest back in the economy. it's are a really good thing. >> what do you have to do to get alibaba back at the new york stock exchange. >> the new york stock exchange is a special place. it has the best network of companies in the world. and it has this floor which has two special attributes. one, the humans that helped the

stock opening process on listings day and every day and then secondly really the media exposure that a company like alibaba can get. they suspected us largely for those reasons and it's been about testing. >> this is one synonymous with the nasdaq for the last couple of years. you've had the majority of them listing here. it becomes not so much the rivalry between the new york exchanges but new york compared with hong kong. a lot of people say this should have been a hong kong ipo but they have their principles. one vote, one share. new york was willing to bend. new york got the listing. what do you say to those people who say, sure, it went great today but is that because you guys didn't have as high principles as hong kong would have? >> let me say two things. one, the beginning of your question, competition is very much for us increasingly global. a few weeks ago we had israeli ipo, today was alibaba, next

week largest colombian bank and many, many other examples. that's exciting for us because we're the global destination. in the case of alibaba, they make the governance standards and i looked at how they prepare for an ipo and it's a very deliberative process and a well-governed one. >> they will say, look, media companies do this as well and it's not an alibaba-specific issue. last question, though. if this is a chinese company, correct? so for the people who think they may have exposure through some of the indexes, for all intents and purposes, even though it came in and was listed on the new york stock exchange, it's listed, yes? >> yes. >> so my point being, this is not a company that is a typical u.s. 401(k) pension, for

example, is even necessarily going to have exposure to unless they are specifically getting it here. >> well, there's a lot to that question. they certainly may have access to alibaba if they invest in alibaba at a market cap of over $200 billion, there's going to be a lot of 401(k)s that have access to alibaba. it's a terrific growth profile. i don't predict whether stocks are going to go up or down but in general a lot of people are excited to have exposure to alibaba. >> tom farlcey, thank you for being here. >> thank you. appreciate it. all right. moving on now, we're going to talk brand loyalists or brand loons. you can call them waiting in lines for iphone 6 either one of those things but we're going to get some real professional help, next. and barclays bank has been going through major changes. tune in on monday.

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for many today is a day of celebration as long lines start moving and people get their hands on apple's newest version of their iphone. so why all of the mania when at the end of the day it's just a phone. you don't see these kinds of today's panel. doctor, who are these people? >> know, what apple has really done is create a pop culture phenomenon. you don't have a smartphone. you have an iphone. it's less about the product than it is about the name. and they've done it in such a way that they've created this psychology of scarcity where demand outstrips supply. as a result, people have this almost desperation to get their hands on it. >> so, there could be a legitimate reason then. by the way, go to the website, cnbc.com/vote because we want to know if you would wait in line

for the iphone. it would be funny if they were voting from the line. anyway, who are these people, nicholas? >> there are two people. i mean, these are people doing it for attention. a couple years ago i went down and interviewed a guy waiting in line. turns out he waits in line for everything. some do it for fun. some do it for money. they're making 1500 bucks. or they'll buy it, sell it. take it to china, sell it. >> it's not just people who wait in line, stunting or who want money. it's an event. people wait in line at an apple store not just because they want the phone. they're not going to the sprint store or at&t store or the verizon store and wait in line. even though the line is shorter. because the apple line is cooler. >> that's so true. >> tim cook in palo alto is going to open the door in the apple line. fifth avenue, the apple store. you can take pictures by the big glass cube at the apple store. it's like going to the cool party in college. sure, can you have a beer and have it by yourself but you want

to be at the cool party on the weekend. >> it's also times square. people gather where it's times square. >> i also think how many people in that line are buying their first smartphone. >> probably none. if you didn't have one of these while online, you would go out of mind. >> a lot have stories, yeah i remember the line for the 5, and in line for the 4s, it just went to here. so, there's color commentary going on in that line. >> if people were just sort of thronging upon the stores, and chase was smart, they had locations at three different places in a way to promote chase pay system they have with apple. i can understand if people are gathering round, taking advantage of the food trucks but they are legitimately waiting in line. is apple creating a supply shortage that to some extent have you to wait this line to get one? >> apple will send out a release on monday morning and probably

say that they sold more than 9 million units. they did 9 million last year. this year demand looks to be stronger. they made more than 10 million of something and sold it out within a period of a week, week and a half. just in terms of pure logistics, that's staggerering. people want different colors, different capacities. >> tell us about the psychology of waiting in line. is it the participation effect we're talking about here? >> well, i think what happens is when you get in line, it's sort of a hip, trendy phenomenon. so, there's this collective reinforcement where you're sure you're waiting in a long line but hanging out with other people buying the apple iphone and that's cool. and apple is the place to be. i think there's definitely a reinforcing effect. it's something people are willing to wait in line for because it makes them feel like they belong and they're part of the in crowd, if you will.

>> have you ever waited in line for an iphone, doctor? >> i can say i have. i'm more of the kind of person who would order online and wait for it to come to my house, but i think there is a social experience in waiting on those lines. if you're all -- it's sort of like what disney does. if you're all moving towards the same thing, i think that in and of itself becomes validating and reinforcing. >> thank you very much for a look inside the minds of the people waiting in these lines. the fed, the biggest ipo ever and the newest iphone. what a week. we'll wrap it up and preview many events on tap for next week.

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today there's a new way to work. and it's made with ibm. welcome back. time for a recap, preview, of everything that's been happening this week. john, can we begin with you? >> yeah. a huge week when you think about the oracle title changes, if nothing else, the iphone launch again. millions of smartphone units don't sell for other vendors over a period of months or quarters, much like a weekend here. a alibaba, expect something out of blackberry. they're not done. >> mike san tolly, golden put

out a note last night saying almost no retail launch moves the needle on top level u.s. economic data except the iphone and they believe it could boost retail sales up 0.7%. >> it's going to make it all up because of this one weekend. the interesting thing for me is how the market has metabolized. i think the market got overfed on supposed good news. looked tired. small cap stocks are trouble. the dollar continues to rally, which has been okay. i just feel as if the market is slowly adjusting to the potential for just a little less of a liquidity driven environment. >> nicholas? >> for me, ma rrissa mayer had o

years, and now people will see how she's doing at yahoo! and the core business. if you take some of the parts evaluation, it's negative. it's a great takeover target. >> there's a lot of depate. a lot of people fooem feel strongly she's doing a great job. a lot of people feel she's doing a terrible job. how much time do you think she should get? >> a lot more. yahoo! investigat yahoo! investors got jealous. th they forced him out because they wanted google. >> so much to get through. could i throw mine in the hopper as well? >> it's your show. >> inflation expectations. there's never a good place to mention them but the way the commodities have been dropping here, but i wonder, mike, if the fed, wonder if, strong enough growth, decent job growth even, and they still sister to go another qe program to support

inflation here. >> that's -- i think it's a long way out before we get to that point. in europe, that's what we're looking at over there because that's global deflation in play all the time. >> that's my homework for the weekend. "fast money" is coming up in a minute with melissa -- i mean, sara, what is on tap? >> filling in. we're going to speak to grasso, who was asked a question by mah on the stock florida. "fast money" starts right now from new york's time square. a very big day on alibaba, opening $92.70 a share. well above the expected pricing, ending up 38% with a market cap