interviewed an astronaut in space. in space. >> how did that work? >> you'll see at 5:00. >> thanks for having me. i'll tune in. that will do it for us on "power lunch." >> "closing bell" starts right now. welcome to "closing bell." i'm michelle caruso cabrera in for kelly evans. >> i'm tyler mathisen in for bill griffeth. >> stocks are falling. dow looking to close out the week down nearly 3%. it's been tough. weaker than expected earnings weighing on stocks. we'll tell what you to expect for next week. of. >> amazon surging today. reported an unexpected profit. it was a small one. why is wall street acting so

favorably toward amazon when it punished apple after it posted a nearly 11 billion profit? top tech fund manager will join us with his take. >> spirit airlines the company calls unbundled air fares. reporting earnings this morning. we'll break down the numbers with ben baldanza. >> steve guttenberg has a new movie. he will be live at the new york stock exchange to discuss it. it's got spdrs in it. >> it's going to be fun, tyler. we start with a move in the market. stocks taking a leg down in the last hour. s&p energy sector in particular having its worst week of the year. it's been a tough year. >> joining our closing bell exchange we've got steve dudash peter costa and rick santelli.

>> this has been a dreadful week. i think there's been a plethora of bad news. what will probably happen next week, we'll have a plethora of good news. >> we need a good greek crisis to get this market back on track. >> you would like to hive that. then the people in greece wouldn't be that thrilled about it. it's about earnings. you have a lot of companies that expectations weren't that great to start off with. they miss that. they got hit badly this week. i think that has to do with where they were as far as price is concerned. when you are topee, stocks tend to trade down quickly and hard. >> rick santelli before you

were in the bond pits you traded gold. what do you make of the hemorrhageing in commodities? is that a signal for the broader markets? >> i think it's a demand story on steroids. these stories are big. china in many ways i think on the way up for many of the markets over the years. when they started accumulating everything, you remember. they accumulate copper iron ore, looking at lithium, they were cornering the market on a production of rare earth, different minerals. they were doing it all. that was translated into global growth, big demand. this is the other side of the mountain. with these markets, especially commodity markets, they always go down faster because of the leverage that builds up. there is a cost to carry there.

it's forgiving in a zero interest rate environment. as we know and the market has been moving to some of these issues, those days may be winding down. >> let me turn to you and get your overall take where we go from here in equities. u.s. style. >> markets have been flat the last nine months. we are big on financials. we think interest rates will rise. where else are you going to get outside returns? you've got to be careful. there are certain stocks that aren't very strong. bank of america has some issues. avoid that right now. look at the wells fargo. especially with cuba opening up to banks. that could potentially open up the doors to big banks. they are going to watch to see stone gate came out with the first one. are they going to allow all the big banks in there. is that a new market and new revenue streams for subpoenas looking for the options? >> it's the cuban government i

wonder. when you talk about the market being stuck in this position for nine months we keep hitting new highs. ultimately when you look at a one-year chart it doesn't look like we made much headway. break out to the up side or down side? >> i don't think you are going to see anything different than the last nine months. we are looking at single digit returns. i don't see why to believe that unless china turns it around and europe picks up and gives a new place for our marketplace and products to go. we are still going to have to rely on domestic consumers right now. that is not going to double or go up huge any time soon. pick your stocks. go strong in stocks right now. don't expect 20%, 30% returns any time soon. >> rick santelli $5.5 billion flowed into bond funds in recent measuring period. why are yields coming down? >> i would think because there is a segment of the fixed income

investment community that says we know we are going to get a lot of volatility. maybe there is normalization with the fed. maybe it's more talk than action. ultimately it's a global growth story. between now and three years from now, rates might be right back or lower than they are now. it's the high side path some investors are worried about. slow global growth is your answer. >> thank you so much for joining us today. let's move on to amazon. that was bucking the sell-off. up 11% in the session. a couple of fund managers taking a victory lap for their support of the stock. bill mueller of lmnllc says the potential of amazon continues to be far greater than the current market capitalization. we estimate amazon web services alone, which did $1.8 billion in revenue last quarter, could be worth as much as amazon's current total market value in ten years. >> josh spencer of t. rowe price

holds amazon among his top five holdings. after today's run he still likes amazon better than apple. josh good to have you with us. why are you so high on amazon in comparison with apple which made a heck of a lot more money? people were surprised that amazon posted any profit because they weren't expecting one, albeit just a $19 million one. >> it's a great point. i like both companies. what i liked about amazon over the past year or so is that its web services business that cloud computing business really seemed underappreciated by the market. you read the comments about how they did $1.8 billion in revenues and 23% profit margins. that's far better than anyone expected when that business was hidden underneath the amazon consolidated financials. now that it's been broken out, i think when we see it for the juggernaut that it is and it is creating a lot of value, i don't

want to give apple the short end of the stick here. they did earn 10 billion last quarter. it's extremely impressive. the longer the stock treads water in this range around $125 i think it will become increasingly attractive. it's not necessarily one or the other. it's just that amazon for a long time had something i don't think people fully appreciated. >> still, it was a teeny little amount of money, $92 million on billions of revenue. does that get appreciably better in the future? do they consistently turn a profit or is this a sweet little surprise to keep everybody happy? >> i think with the long view it will get consistently better and substantially better. the cloud computing business is showing fantastic profitability. i think the retail business will show very consistent and strong profitability. i think amazon built a

competitive moat around their business. it will be hard for someone to break into that online delivery retail business. it will prove to be very profitable for them. >> does it deserve a valuation larger than walmart? does it deserve a pe ratio where it is compared with apple at like 14 times forward earnings? >> my view is yes. i think amazon will be a much bigger company and a much more profitable company than walmart. when we think prospectively, if you roll the clock forward 10 years, this business will be considerably more profitable. it's over time a more capital-efficient model than walmart's. it will have better selection and better delivery. it's not based on current pe. it's based on what we think the business can earn long term. >> if the cloud computing space

is so great and profitable and so much higher in margin than just the retail space, why keep it together? do you need that cloud computing in order to offset the retail? are are there synergies there are or should they spin that out to get something with a gangbuster multiple? >> that probably becomes a question they have to start asking. in the early days of cloud computing business, it was synergic. they started offering it as a sideline letting other people benefit from this infrastructure they had built. now it has its own scale, they could start thinking in that regard perhaps this business should be spun out. >> one of the things a quick close with a quick story. my son had a cable that had been chewed by the cat so it didn't work. i could have spent weeks, days

hunting around my town for that replacement. i spent seconds going on amazon to get it and it arrived on sunday. i ordered it saturday. that's why i think they are doing as well as they are. josh spencer from t. rowe price, thanks very much. >> thank you. >> i'm a prime member. i love it. 40 minutes before the bell. s&p 500 lower by almost 1%. >> up next regeneron and sanofi getting government approval in a new class of cholesterol drugs to hit the market. how much it could cost. >> you may remember him from "police academy" and "cocoon." steve guttenberg is here on the new york stock exchange. his new movie where he fights fire-breathing spdrs. what he thinks about the netflix effect on hollywood.

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take a look at the major

averages. biogen citing displointing sales of a key multiple sclerosis drug. >> anthem buying cigna for $54.2 billion in total. bertha coombs is all over how this deal could affect health care costs. >> that is going to be a big question for regulators. combine anthem and cigna would become the largest health insurer by membership. with $115 billion in annual revenue, they would be smaller than unitedhealth. with more than 50 million members, they cover nearly 1-5 americans. anthem's ceo says that will help them lower costs and pass savings on to consumers. in some big markets like california, for example, their combined commercial business would boost anthem's market

share by 20%. which could prompt regulators to ask for divestitures. the impact of the deal will likely be looked at alongside aetna and humana's proposed merger. anti-trust experts say the companies will have to make the case consolidation won't hurt competition. >> that they can become more efficient and they should be able to lower the rate of increase of their prices. as you know in the hospital sector to some degree and other mergers, we frequently see price increases. >> while anthem and cigna say they are confident of approval the deal does have a break-up fee. >> thank you, bertha. regeneron shares still halted. regeneron and sanofi getting the green light on a new class of cholesterol drugs.

>> analysts estimate peak annual sales $4.8 billion. that will come after a few years. the companies haven't shown the effect these drugs have reducing heart attack and stroke risk. they seem to be inline with expectations or broader than expected. they say this could be beneficial for 8 to 10 million people who fall into this category for whom this drug is approved. >> there is so much focus on cost. health care approvals and mergers. we are talking about cancer drugs that are so expensive. what about this? what are the costs of this? >> that is the key question from the macro and stock perspective.

we don't know what the price is. it could be $10,000 per year per paying. pharmacy benefits managers and payers have said the number of patient whose could take these drugs could mean $100 billion in costs to the system. you are seeing interesting stock movement in other companies. amgen not moving as much. esperion they make another cholesterol drug that would be taken orally. folks think that benefits from this broader label. >> thank you. before 2000 the average cost of a cancer drug for a year of therapy ranged between $5 and $10,000. 2012 the cost increased to more than $100,000. >> over the same period the

average household income in the united states decreased by about 8%. these rising costs causing an uproar in the medical community as a group of doctors from the mayo clinic ban together to try and lower costs for patients. joining us for more discussion of this is a hematologist at the mayo clinic. welcome. good to have you with us. of all the things you have proposed by way of trying to get control of rising drug costs, which one would have the greatest effect? would it be preventing the companies from banding together to delay generics having medicare be able to negotiate the prices with the drug manufacturers? which would be the single best or most important one? >> i think in my opinion the single most important one and the one that can be immediately

applied is for patients and physicians to start critically assessing the value of the drugs that they are prescribing or taking. these drugs can cost as much as drug companies want but patients are the ultimate consumers and they have to ask whether the particular drug is worth spending their lifetime earnings? there are a lot of drugs that have only marginal benefits and some patients are smart enough to ask whether it's worth spending all that money. if patients and physicians acutely become aware of this crisis and start asking questions before i write this prescription indiscriminately, i should ask is it really worth it? i think that is something patients and physicians -- yes? >> i agree. that would be a great thing. i think what happens when it comes to the question of whether

or not someone you love or you, yourself, are dying, you are willing to spend the money on the chance that it's going to work even a teeny bit. i'm surprised you didn't bring up and one thing i found frustrating, while these cancer drugs are enormously expensive, americans in general pay more for our drugs than everybody else in the world because all these other countries insist that they should have cut rate prices on their drugs and these are wealthy countries. u.s. citizens fund r&d for the rest of the world. why shouldn't we pressure those countries to say you have the money, you can also pay? >> that is very important and that is the common argument. everybody knows about this. the problem is a lot of people have been voicing these issues and no action has been taken. i think it's time to start taking action. i think the ones that can be

taken immediately are by patients and physicians. obviously, that does not spare the drug companies or regulators from dealing with the problem. you have to remember they have the same old argument about how important these things are for innovation, research and development and what have you. they have to take a deep breath and step back and recognize the fact patients are suffering quietly with this financial distraction. they have to say this is not going to work. we have to start working with patients regulators physicians to do something in order to control this. obviously, that's the most important thing. i think everybody knows everything you said is very accurate. it is time that we take action and instead of bringing of sophisticated arguments to justify why, we should say regardless of what the cause is that the problem is there.

it's now and we have to start solving it. i think patients and doctors can do so much because then the drug companies will be forced to look into and make it more affordable. >> all right. doctor thank you very much. we've got 37 minutes before the closing bell. dow jones industrial average lower by 141 points s&p 500 lower by 20 points. coming up weakness in china turning out to be one of the biggest drags on earnings. find out which companies reporting next week face the biggest vulnerabilities to the china factor. >> coming up next actor steve guttenberg weighs in on netflix, its impact on hollywood and the cool movie he's got coming out filled with spiders.

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from "police academy" to "cocoon" to "three men and a baby" actor steve guttenberg knows about hollywood box offices. >> steve joins me on the floor of the nyse. great to have you here. >> thank you.

great to be here. >> you were doing shakespeare a few weeks ago. >> i did "henry iv part 1" which is a classic and now lavalantula. it's saturday night on the sci-fi channel and sunday showing at 7:00 p.m. >> of course i'm going to watch it. you became famous from the "police academy movies." >> i got lucky. >> a lot of those are showing up on netflix, amazon prime. are you excited about that? how do you feel about that? >> what is terrific about all these new distributors, there are new ways to see your work. especially work that has resonance. i'm very pleased for that.

it gives a lot of income for actors. >> are you seeing more checks? >> i always see checks. >> i expect you are awaiting for award season. >> i nominated myself. >> how much fun is it to work on a movie like this and to what do you attribute the sort of phenomenon? we all were talking this week about "sharknado." i expect this will be all the talk monday morning. >> that would be great. it's a giant spider movie. some of my best friends are giant spiders. are they playing music here? working on this movie was fun. you get to deal with a lot of green screen. it means you are acting in front of nobody. how some of these traders work.

what happens is you do your green screen work and they put in a monster later and it works. today what we are dealing with is "ant man" and "wrath of the titans" and "thor." when they came with a great show like "lavalantula." >> did you really pass on "sharknado?" >> i did. there's enough for everybody. >> it's been so fun having you on. >> do you get a discount on any stocks, anything like that? >> you want to talk stocks? >> i want to know about cohen steers? or do you like american fund? >> do you own all these? >> is there anything there? oppenheimer? >> do you invest in open heimer? >> i do a little. >> do you manage your own money?

>> i don't. i have a company and i work with deutsche bank. i work with schwab. city national does some of my stuff. i'm involved with a bunch of guys. none of them crooks. >> so you hope. thank you so much. "lavalantula." premieres tomorrow night on sci-fi. >> we have to have steve back to talk about stocks. it's fantastic. i love it. wonderful. >> time now for cnbc news update with morgan brennan. >> how am i supposed to follow that? here is what's happening. authorities say movie theater gunman john russell houser was armed with a semi automatic.40 caliber hand gun and had one additional magazine. he was denied a concealed weapon permit because of a prior arrest record. fiat chrysler will recall 1.4 million vehicles equipped with certain radios to prevent hacking.

dodge, jeep ram, chrysler and related to a security flaw highlighted by hackers earlier this week. two were able to take control of a jeep suv and control it remotely. at least seven people were killed in an explosion at an italian fireworks factory. the blast triggered a series of explosion and a fire at the factory in southern italy. the cause unknown. >> the world health organization announcing a major milestone in the fight against malaria. a vaccine tine developed by glaxosmithkline performing well enough to be approved by european drug regulators. that's the cnbc news update. back to you. thank you. we've got about 29 minutes before the closing bell. dow is off about 155. those losses steepening a bit. maybe in anticipation of "lavalantula." up next, a top trader will tell us what he is watching in the final half hour of the trading week. we see a lot of volatility in

these final 30 minutes. stick around. spirit airlines ceo joins us in a first on cnbc interview. t the td ameritrade trader offices. ahh... steve, other than making me move stuff, what are you working on? let me show you. okay. our thinkorswim trading platform aggregates all the options data you need in one place that lets you visualize that information for any options series. okay, cool. hang on a second. you can even see the anticipated range of a stock expecting earnings. impressive... what's up, tim? for all the confidence you need. td ameritrade. you got this.

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industrials off 160 now. declines steepening a little bit in the last 20 minutes. s&p 500 off 23 about 1%. nasdaq. a little more than 1%. this has been a rough week. trip advisor falling on the back of disappointing earnings. there you see a one-week chart down 12.50%. let's get to mary thompson. >> oil and oil stocks. oil rig counts rising this week. amid signs of an economic slowdown in china. both helping to push down crude prices today. crude finishing at its lowest levels since march 31st. that hitting energy stocks hard

today. >> we've got less than a half hour to go before the end of the trading session. ben willis of princeton securities. looking like a tough end to a tough week. what do you think? >> you'll see a continuation a pick-up in volume. breadth of the market is better even though negative. the moves we had lately have been very are pointed to the up side or down side. leadership in either direction was only in a select few stocks like apple. today we are seeing broad-based selling starting in the russell 2000. looks like etf selling not an individual group under pressure. >> why? >> i think you are seeing forced selling. there's fore selling to cover loan positions where commodities had been used as collateral. that is continuing. >> that ripple effect from the

terrible route. commodities getting hammered in a way we haven't seen in years. >> if you are having a margin call or assets pledged against that commodities are not paying off, you need to raise it somewhere else. that's also where we've seen seeing money being raised. a lot of money being made in that biotech sector and looks like they are taking profits. >> ben, thanks so much. spirit airlines out with earnings today. down more than 2% after missing slightly on revenue. joining news a first on cnbc interview is spirit airlines ceo ben baldanza. welcome. good to have you with us. >> great to be with you. >> how's business? >> business is pretty strong right now.

>> you cater to the recreational traveler than business customer. what do they say about the way they like the way you present fares to them? >> they pay for tickets themselves. when somebody pays for a ticket themselves versus having their company pay for it they are more realistic about what's important to them. the unbundled nature of our product, charge one price to get on the plane, extras for others in general the customers who understand that like that. they don't pay for bags they don't check or food they don't eat. >> when you look at customer satisfaction ratings, you guys are low. is that something you accept as

a trade-off? or is that something you would like to improve? >> there are two stories there. there are complaints about spirit because of service failures, if we are late or lose your bag or something. the reality is those complaints at spirit are just in line with everybody else in the industry. we don't look particularly worse or better than anybody else. where we tend to have a deficit right now is that our business model surprises some people because we charge for some things other airlines don't charge for and do some things differently. there are some customers who love us because they get a really low fare but are surprised at what it takes to get that low fare. we are spending effort to be super transparent about the business model and educate customers so our value proposition is clear. we are seeing improvements on that side of the house. >> i don't mean to put words into your mouth, but is implicit

in what you just said that you don't care whether that customer satisfaction rating is as low as it is with respect to those things that are part of your business model? you will not spend the extra money to raise that number just to raise the number? have i got it right? >> well basically, what those satisfaction industries do they look at the product delivery and they don't compare it against the price paid. it's like telling you the bmw doesn't cost as the ford focus. we want value proposition to be clear. we charge a lower price and the product is different than you might get on a delta or jetblue. but we think that trade-off for most customers is a real positive one. over time working to make that clear to customers.

>> are you getting closer whether or not you are going to offer flights to cuba? >> we are excited about the changes happening between the u.s. and cuba in terms of flight opportunities, but as we sit here today it's still not possible for us to fly unrestricted from cities in the u.s. to cuba and offer our deep discount fares. we are watching it very closely. when it is possible to offer the kind of service that spirit wants to offer, meaning really cheap fares to multiple cities in cuba. we'll be there. >> thank you very much. >> thank you very much. >> regeneron shares reopening after the fda approved the new cholesterol drug. take a look. stock -- is it real why i? it's lower by 2.5% at this point.

s&p is lower by more than 1%. so is the nasdaq. >> how could the slowing chinese economy affect next week's batch of earnings and your money? morgan brennan has a watch list you need to know about. >> more silicon valley news hits wall street. tlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money. it's a brighter day in detroit. people can see better when they're out doing their tasks,

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weakness in china spilling over attorneyings to microsoft and novartis. that theme could play out strongly over the next week. >> brooning list of u.s. companies saying slowing growth in the world's second largest economy is taking a toll including 3m caterpillar, united technologies, vm wear all this week. that trend is only likely to continue as we get another full schedule of earnings next week. among them dupont which reports next tuesday, 38% of the chemical company sales come from asia. also food and beverage giant

mondalez. 24% overall revenue and reports thursday. seagate another number to check out. drives 50% of sales from asia. that reports next friday. other companies to watch with china exposure reporting in the coming days procter and gamble colgate-palmolive, ford and baidu, the chinese online search company that trades here. go to cnbc.com. we wrote up a story detailing all that. >> thanks very much. morgan brennan reporting. >> we've got about 15 minutes before the closing bell. dow jones industrial average remains in negative territory as the s&p 500.

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breaking news on the company called square. >> it's a company that's been closely watched. held by jack dorsey. sources tell me it is headed for an ipo. that news coming after bloomberg reported that the company had confidentially filed for an ipo. my sources say that is the plan that they did not confirm whether that paperwork has been filed. i have confirmed that they have hired bankers to that effect. goldman sachs is the lead left as they call it in the industry for this ipo. that's expected to come in the next few months. timing is unclear. i'm told morgan stanley has been hired for this forth coming ipo. that bank's role was not made as clear to me as goldman's which is supposed to be the lead left here. it is expected they will have a role as well. goldman sachs and morgan stanley

are working on this deal. jack dorsey current interim ceo of twitter and ceo of square. this will be closely watched. you can't be the ceo of two publically traded companies, one of those will have to find a new ceo. we'll keep you posted on that story. last time square valued in the private markets was last august at $6 billion. "wall street journal" reporting that the obama administration is preparing to release convicted israeli spy jonathan pollard, according to u.s. officials, some of whom hope the move will help smooth relations with israel in the wake of the iran nuclear deal. mr. pollard imprisonment has

been contested for years. he was convicted of spying charges for israel back in 1985 and sentenced to life in prison. according to the "wall street journal," there are two possible scenarios here. some u.s. officials say are pushing for his release in a matter of weeks. others expect it could take months, possibly until he is up for parole in november. again from this story, white house spokesman referred questions to the justice department where a spokesman declined to comment on that matter. "wall street journal" reporting the possible release of convicted israeli spy jonathan pollard may be in the works. back to you. >> thanks. let's show what's going on in the markets. dow jones lower by 150 points. art cashin stopping by the booth saying there is no imbalance on the close. joining us on set david darst.

>> markets are willing to overlook and down playing the lead economic indicators being so strong this month. existing home sales were strong this month. new jobless claims have been 20 weeks below 300,000. profits and revenue is the problem. that's the missing party at this party. china is one of the things -- watch that oil price. the market has not liked the way oil is handled. it's china, iran supply opec supply shale producer supply. and the hedge fund of oil markets. futures and options are four to five times the physical volume of trading in oil. it used to be one time. they have sharply reduced their positions.

with copper at a six-year low, aluminum at a six-year low, miners are doing poorly. australian dollar resource currencies. watch china for going with the resource complex. >> as you point out, copper has crashed over the last year. let's talk about why -- as we were in the dark of winter everyone was saying just wait. the second quarter is going to be better. economy is going to come back profits will come back. why didn't it? >> the weakness in china. fixed asset investment. retail sales. exports, imports. there was another number released during a week that got ignored by many people which is the railroad freight volume. down 12% year over year. you can't fudge some of those

numbers. buy europe buy japan. europe is an importer of oil on balance. it's up 15% in dollars this year. buy europe and buy japan. >> make sure you wish our mutual friend greg a happy birthday. he turned a high age yesterday. >> thank you. i will give him your best. we always talk about you, tyler, in great, glowing terms. >> thanks david. we'll come right back with the closing countdown. >> after the bell the man behind the first-ever vaccine for malaria. you are watching cnbc.

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the whole commodity complex. materials, as well collapsed. this week the icing on the tape industrials had a horrible week. united technology. four straight down days. volume heavier than normal. a lot of new lows in energy and materials. we had a bunch of these weeks. four, five days it's gone straight down. we had a week in january, a couple of weeks in march. a couple of weeks in june. now it's a week in july. it's been a very choppy year where one thing doesn't work then something comes back. i'm concerned the industrials are showing signs of weakness. today was a lousy day in the biotech. we are talking about biogen. that's been pulling down the other names here. we need health care to hold up.

we need a couple of these other sectors to do better. banks held up. we'll talk about that on the other side. >> where are we we started the year. bob pisani thanks very much. have a great weekend. i'm tyler mathisen in for bill griffeth today. michelle caruso cabrera will take you to and through the closing bell. thank you. welcome to the "closing bell." i'm michelle caruso cabrera in for kelly evans. industrials lower by 160 points. s&p lower by 22 nasdaq lower by 57. declines of more than 1% in the s&p and nasdaq. much more on the markets still to come. an exclusive interview with the former new york governor eliot spitzer. he is still taking on wall street. this time with his business that ranks analysts and analyzes

corporate insider transactions. he will join us live at the new york stock exchange. we have evan newmark and kayla tausche. "fast money" trader guy adami. guy, what is your sense of what the problem is this week? >> by the way, ridiculously outstanding job during your tenure in greece. it was amazing work by you. >> thank you. >> crude oil, mcc. it's been cut more than half in the last seven, eight months. look at freeport-mcmoran. it's at a six or seven-year low. u.s. steel is within a whisper of a 15-year low. you can't discount the fact that commodities across the world are getting crushed. what does that mean? i think it means deflation has been a problem all along. evan would disagree. you have this stealth rally in the bond market. ten year right at support in terms of yield at 2.25%.

you have cross currency right now. >> guy is right. when we talk about the way commodities are getting crushed, we've been asking for more than a week. are they telling us something about the overall global economy and about the stock market? >> they are. the question is what are they telling us? if you are a contrarian i tend to look at these moments as buying opportunities. >> stocks or commodities? >> stocks. commodities, gold, all that stuff, i stay clear of that stuff. they are way too volatile. i tend to look at opportunities like this. a couple of weeks ago i started to buy, a day like today i buy more in the energy sector. i'm looking out where will things are three or four months from now? where will they be a year from now? >> you think they are going to be higher? >> i do think they could be

higher. oil stocks have been absolutely killed. they are down in the year down 35% or so. when do you want to buy stocks? when everybody else is buying them? biogen, two months ago i was on the show. biogen hit $460. everybody was like it's great. it's now down 1/3. >> now everybody is terrified. psychology is incredible. the announcement of the alzheimer's thing, it went up. investors think that's exciting. to me it's the other way around. >> despite huge moves, you have a move like amazon overnight. i would call visa to a certain extent a technology name because it is a payments processor. not necessarily a plastic company any more.

we haven't seen anything lead. next week facebook would hopefully give another leg higher to the nasdaq. we are not seeing any breadth in technology. >> everything is super narrow. >> breadth is very bad. >> especially the last two weeks. some bears say that's a bad sign when you have large caps making up a huge part of the index. the rest not moving in that direction. there is a disconnect. >> we haven't talked a lot about how the regulatory burden on the financials talking about how much capital they are going to have to post. historically you look for the financials to lead the market right? i'm not sure regulatoriwise they are going to be allowed to lead the market. that is another chain hanging around the neck of this market. >> the one positive thing, they've done so much work to build up their capital levels. there is not that much work for

them to do. the hope is loan demand will pick up at a time when the fed is raising rates which will allow banks to capture more of that yield and make more money. the margins are under pressure. they have a stock pile of capital there sitting waiting to go. >> what are you doing here? >> many enmentioned the energy sector. look at names that work. people don't talk about this. look at the refiners. there is gasoline demand out there. gasoline is tight. move in energy works for both tesoro and valoro. other names don't work and haven't for a long time. tech. ibm is abysmal. that trades into the $140s easily. you are looking at opportunities in biotech. you made a great point about biogen. we talked about regeneron. celgene is the best company in the space. that pulled back with the rest

of the group. so has gilead. i will tell you this the level in the s&p is 2054 on the down side. has to hold. we are in critical support in the russell. we talked about 121 for a while. >> what do you make of the sell-off? is that people selling winners to cover? >> i think these sell-offs are generally a good thing. i like this slow motion correction that is going on. certain sectors being dragged down. i wouldn't touch a stock like amazon right now. all the things fast money traders like i wouldn't touch them. facebook and amazon. they'll pop 15%. when you come back to it i tend to look at valuations. >> you're so old fashioned. >> the truth is if you go out a year, the odds of a biogen popping are high when you are buying at $450. >> guy, you have a strong

reaction here. >> evan i respect him tremendously. he would have said the same thing about amazon six months ago. >> 100%. >> you lost? >> no. i wrote a piece at "wall street journal" you should never short a stock like amazon. i learned the hard way. >> it's not like we are talking about a short-term pop. amazon had its ups and downs. its market cap lapped walmart. >> i've been wrong in the past and i'll be wrong again. for my own money, where do i want to put it? a stock that is relatively cheap. >> last week bulls ruled wall street. not this week.

bears came out of hypernation. what hibernation. >> the focus will be on earnings next week. a small number of companies will be in focus. there is a lot riding on facebook. stock is up 20% in the last month. expectations of a strong report is what they are expecting. investors piled a lot of money into a small group of big cap tech names. good news dramatically boosted amazon and google. the smallest disappointment hurt apple. traders will be scrutinizing big international companies for the impact of the strong dollar. procter and gamble gets 65% of its business outside the united states. dow components exxonmobil and chevron report the end of the weekend. chevron earnings will be down about 55%. estimates have been coming up for them. they will be scrutinized for any

indication when the oil slide may stop. it's not the earnings it's the guidance for third quarter that matters. the guidance for q-3 is coming down. the problem we know about slow growth in china and latin america is an issue, strong dollar and weak oil has continued into the third quarter. what happened? the fed told us strong dollar and weak oil would be transitory. the bottom line is growth is very elusive this year. we can't find it particularly overseas. watch the market leaders next week. the banks are holding up fine. today is one of the worst days in a long time on the biogen disappointment down 4% in the major etf.

energy lost. materials lost. industrials slipped big time this week. we need financials to hold. we need tech to hold and health care to hold up. if they start falling apart, everything will fall apart. a lot could happen next week. >> key things to watch for next week. thanks so much. what do you make of that list to watch? >> bob makes great points. i'll give you this final word. the stock market has masked what is at best a stumbling u.s. economy. people think the economy is better when they see the stock market go higher. don't discount the fact things are unraveling in china. i see what i think is going on. latin america is a mess. europe, though not talked about the last week has still some serious issues. you are talking about epf growth. revenue growth isn't there it's

not commesurate with the eps growth. unless we start to hold we might be in for slippery slope over the next few weeks. >> guy, i never want to ditch you. that is why i'm going to be sure to stick around and catch you and the rest of the "fast money" crew at 5:00 p.m. >> bye with mcc. all the sectors you should keep your eye on. don't miss it. next week is the busiest of the earnings season. we'll tell you what to expect from the social media giant. how is youtube trying to fight off increasing competition from the company? we are going to hear from youtube ceo.

youtube driving revenue growth for google last quarter. facing pressure from music labels and increasing competition from facebook. julia boorstin sat down with youtube's ceo. >> addressing that music industry us from station, the

susan told me she is working hard to improve ad revenues with partners. she talked about the new threat facebook poses now that it has its own video player and offering to share ad revenue with content partners plus the fact facebook has more users than youtube. >> they're a large player. it's always important to look at the competition and take it seriously. that said this is a really big space. pretty much any way you look at it, time of users, advertising dollars, subscription dollars is very large. the tv market. it's moving to online. we think there will be a lot of opportunity for different players to come into this space. >> she is opened to acquisitions of some of the newer players if they could help youtube serve its users and creators better. you can find more from my interview on cnbc.com.

>> twitter and facebook two of the big names next week. let's bring in michael grande and our panel. let's start with facebook. stock has been doing well. what is your expectations? >> i think facebook looks good heading into earnings. they've got a well-rounded growth story. they are growing their user base and expanding moonnetization. as you look ahead for the next couple of years, there are visible levers that the company can pull to keep growing. the stock market has reacted sharply to some positive momentum here. i can see being a little bit cautious heading into the quarter. >> the stock is higher today in the face of a sell-off and the rest of the market. i look at that chart. it looks phenomenal. when we see how disappointed investors have been with the other tech earnings thus far, is

there a possible set-up for disappointment? >> i think if facebook's case i would be surprised to see a huge move on this quarter. i think they are going to have consistent results, and i think they are only in the sixth or seventh inning of monetization many properties. i would be surprised to see a huge move. a lot of people are long-term believers in this company. the audience is huge. they spend a lot of time with the property. relative to the ad revenue that audience and usage is big. >> also we have twitter reporting on tuesday. it will be the first quarter that jack dorsey as interim ceo, will be at the helm of this company. as we just reported he's pursuing an ipo for square. what questions would you have for twitter as the company gets set to report? >> this is an important quarter for twitter. they have telegraphed problems well to investors. the biggest one being that the

user base is not likely to grow very much if at all this quarter. that's the company's registered users. people who are logged into account and actively using the service. they have a big opportunity is with the broader logged-out audience. we have high hopes for their deal with google. tweets have been included in google search results the first time in a couple of years. that will drive a lot of traffic towards twitter. we are looking forward montetizing those users. >> take a company like facebook. say it's about $15 billion this year plus or minus. it's got close to a $300 billion market cap. twitter probably more extreme in terms of valuation multiples. how do you get comfortable with telling investors, this is a great thing.

facebook has gone from $300 billion market cap to $600 billion market cap. you've got to be there for it. >> i don't think either stocks are at extreme levels in terms of valuation. facebook is trading at just to use a shortcut trading at a pe ratio that is similar to its growth rate. it seems like an expensive stock. facebook has extremely high profit margins. you know a lot of revenue will fall to the bottom line. twitter is more unproven in terms of its profitability. margins are only 1/3 of the level of facebook. if twitter can start to execute well, there is a long way to go in terms of earnings being able to grow faster than revenue. you look at the big growth rates you have in both these companies. it makes you more comfortable with the valuation. >> it's priced into the valuation though isn't it?

somebody drove facebook stock from $75 to $95. >> i think that investors are focused on long 0 term and times. it's so early in terms of monetizing that audience it's not hard to look out several years and see the growth rate staying high. you mentioned tech leadership as a sector amongst some of the other sectors and there is nowhere else you are going to get high growth rates and high teens to the low 20s that will persist for several years in this economy. tech and social media are some of those companies. >> we'll see. thank you, michael. michael graham. glaxosmithkline winning approval for the first-ever malaria vaccine. is there money to be made for the vaccine which has been in

the works for 30 years? the head of the vaccine unit joins us next. he took on wall street as governor of new york. eliot spitzer trying to hold financial firms accountable investing in tip ranks which rates wall street analysts. he will join us exclusively.e lice arrive on a crime scene they could have little to go on. a vague description. a single piece of evidence. a partial plate number. with an app from ibm officers can now access over a billion police documents to find hidden connections and identify potential suspects. ibm analytics helps one hundred thousand officers work smarter every day.

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a new breakthrough preventing malaria that killed 500,000 people in 2013. according to the world health organization, almost half the world's population is at risk contracting it. last year 97 countries and territories had ongoing malaria transmission. there is good news out of the vaccine industry just today. glaxosmithkline passed a major obstacle for its malaria vaccine as european regulators gave it the green light. joining us on set is our own meg terrell. >> you are giving away this vaccine and why it makes business for glaxo to go into this. >> we spent 30 years discovering and developing this vaccine and committed for a long time if and when we have it we'll make it available at cost plus a 5%

profit margin we committed to reinvest in discovering other vaccines or medicines against neglected tropical diseases. the reason for that is first we are committed to our social responsibility and saving people's life for the haves and have-nots. also from a business perspective. technology we have discovered and validated through the malaria vaccine work is also very relevant to other vaccines. for instance we announced a few months ago we have a new shingles vaccine using the same platform tech nolgnology used in the malaria vaccine. it introduces 97% protection against older people against shingles. there is an opportunity here for an economically impactful vaccine. thirdly, being committed to such a vaccine and the first ever against a human parasite makes

gsk for the best technologists in vaccines in the world. >> what is the biggest hurdle to distribution in poor areas of the world. >> absolutely the global alliance for vaccine has been set 10 or so years ago. the bill and melinda gates foundation helped procure these vaccines and distribute them. organizations like doctors without borders play a critical role delivering the vaccine. this like others already delivered in the least developed countries will be procured and distributed through doctors without frontiers. >> tell us about the effectiveness of the vaccine. it's not 100% preventive. why that makes sense to be used.

>> this has 30% efficacy against toddlers and infants. malaria kills 30,000 children a year. imagine you have four children and you know two could die of malaria. if you had the vaccine you would save one of those two, would you say no or yes? if you are a parent would you say yes. this is a very important first step. >> is there more in the pipeline behind this potentially to expand it beyond children in the most at-risk areas to folks traveling who go to places with malaria? >> we actually already have a second generation vaccine which is a small tweak to this first generation vaccine.

we know in early clinical studies, this vaccine has improved efficacy that could make it an effective vaccine for travelers, but also a much better vaccine in infants. our next step now is to test it in subsahara african children. >> thank you. i had malaria once years ago. very minor case and obviously i have access to great medical care. horrendous. i've never been so cold in my life. it was unbelievable. >> it's a terrible disease and a killer disease. we are thrilled to do something against it. thank you for having me. >> thanks to you. great work. thanks, meg. great stuff. time for cnbc news update with morgan brennan. >> democratic presidential candidate hillary clinton proposing u.s. corporate tax reforms including a sliding scale for capital gains taxes and changes in executive compensation to encourage long-term growth to benefit american workers.

>> at&t receiving final approval to buy directv for $48.50 billion, combining the number two wireless carrier with the largest satellite tv provider. at&t will have to expand its broadband service and ensure it doesn't discriminate against rival content. >> southwest flight attend yapts overwhelmingly voted against a tentative contract that would have raised wages but involved changes in the work rules they thought burdensome. a man surviving unscathed after a train passed over his body on a rail line in japan. the 83-year-old man was lying face down between two rail lines only five inches high. he tells police he doesn't remember anything. back over to you. new home sales data showing a potential setback in the housing recovery. what is behind that summer slump. >> fiat chrysler taking action after a remote hacking of one of

its jeeps. details on the move and whether other automakers will follow suit.

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dow jones industrial average off 163 points a decline of

nearly 1%. s&p 500 lower by more than 1% or 22.50 points. nasdaq lower by 57 points. decline of more than 1%. all major averages finishing lower by 2%. >> new home sales plunging in june. falling to their lowest level in seven months. diana olick joins us with what was behind the drop. >> it was a weak number because may's number was revised down. sales of newly built home fell to an annualized rate of 482,000. that is still up 18% from a year ago. it is the slowest pace since november. bulls will say we are up 20% year-to-date, but does not bode well for the second half of the year. especially as we hear more about buyers getting serious price fatigue. median price of a newly built home sold in june was down

slightly from a year ago at $281,800, but still near record highs. yesterday on pulte earnings call builders are still seeing pricing power, but starting to talk about lower priced products. they have been all over that. that's where the market was. with so little supply on the existing side especially lower end, they could see more demand coming from first-time buyers but only if they can afford it. >> what about the possibility of rising interest rates? >> absolutely. you have to figure interest rates into this. we saw this bump up in early may when interest rates shot up sharply and some people got off the fence and realtors were saying that's why we saw that big bum in existing home sales in june because that was based on contracts signed in may. in june when rates are higher suddenly new home sales based on

shoppers in june signing contracts, that falls off. you see those little rate moves up having an impact. should they go higher we'll see a big impact. >> a question about existing home sales. talk about the pricing there. i had heard a lot of people were holding back. there was an issue with not a lot of supply prices were going higher, but there was shortage on the supply side. am i missing something? it's all about lack of supply in the existing home market. we have very short supply. almost historically low. that's what's pushing prices higher. when you look at the housing boom some markets are past the peak of the housing boom. everybody got free money mortgages. now that's not the case. you are looking at people who have to get that loan to afford that house. 20% down 3.5% down on fha. they are are not able to afford

these higher prices which are only going higher because there is so little on the market. why so little? people still in a negative equity position. people saying i'm not going to put my house on the market if i can't afford that move up house. >> i was going to ask you that. what is it going to take to loosen this up supply? it's people not wanting to be displaced without somewhere else to go. the price keeping them from doing that. what forces do we need to balance out to get more supply on the market? >> you need home builders to build homes, to do their jobs. you look at housing starts we saw the number pop-up. it was all in multifamily rentals. we need to see much more single family home building. we need to see entry level home building and more supply coming from sellers who feel like there is enough out there for them to afford and buy and move up. it's a chain.

there is so little on the low end to sale. you get to that rent price. when is it going to tip that people can't afford rents? it's getting to be a difficult situation in affordability on rental and buying side. builders need to kick in. >> telling when the fact is there are still people who have negative equity. they paid so much that we see they are not able to play in on that. thanks diana. want to beat the s&p 500 by 4%? there is a new website promising to help investors do that monitoring corporate insider buying and tracking top analyst ratings. it's backed by eliot spitzer who will join us later on set. first though hillary clinton's server scandal isn't over yet. new details on the justice department looking into clinton's personal e-mail out today. "meet the press" moderator chuck todd joins us on that next.

hillary clinton dominating the political news today. the justice department saying it received a request to open an investigation into how classified information was handled in relation to her private e-mails when she served as secretary of state. but that the investigation is not criminal as originally reported. clinton delivered a speech earlier today in new york city on wall street policy. she suggested raising capital gains taxes. >> as president, i would move to

a six-year sliding scale that provides real incentives for long-term investments. for taxpayers in the top bracket, families earning more than $465,000 a year any gains from selling stock in the first two years would be taxed just like ordinary income. then the rate would decrease each year until it returns to the current rate. this means that from the moment investors buy into a company, they'll be more focused on its future growth strategy than its immediate profits. >> that's going to fire up the left, i bet. joining us with his take is "meet the press" moderator chuck todd. hey, chuck. >> how you doing? >> good. is that a good plan? >> i'm not sure that fires up the left. >> i was being snide. >> i know. you sit there and watch what she is doing. this is an idea that actually

not everybody in wall street hates. maybe they don't like the percentage points. >> don't tell them that. >> the sliding scale idea there is actually it's probably something she can get through. if she thinks this is what is going to co-op the bernie sanders message or the elizabeth warren crowd, she's got another thing coming. >> let me ask you something. you've got bernie sanders on this weekend? >> i do. >> back when sarah palin called barack obama a socialist, the democrats to their credit took it as an insult. >> right. >> i'm not sure they would today. bernie sanders is a socialist and running for president of the united states. to a large percentage of the population it's unthinkable. is this what we've come to? >> he's unapologetic about it. he sits there and he did interviews i read and i'm going to ask him more about it. he praises what he says are democratic socialist countries

like the nordic countries like norway and sweden who he sees as models at what the united states should do when it comes to say, prenate prenatal care where he wants to expand the social welfare state on that front a little bit. i think this gets to the heart of a larger issue going on. you are seeing a bit in both parties. it's fueling trump and fueling sanders, where you have a working class group of voters. some are progressive leaning and some conservative leaning who both feel as if they can't make it. they can't get into the middle class let alone get out of the middle class into the upper class. on the right they are being handed blame government, blame immigrants. on the left, bernie sanders and a lesser degree hillary clinton saying blame wall street. there's a whole bunch of people who feel they've been left behind. i think that is having a huge impact on our political

landscape right now. >> bernie sanders would be the trump of the left? >> he is in that way. the reason there is an appeal with some on the left is the same reason trump has an appeal. he doesn't speak like a politician. today hillary clinton, programmatic, jeb bush programmatic saying things would you assume the progressive left or conservative right would like but they are doing it so carefully, it's not animating these bases. >> quick question back to this capital gains thing. what is hillary's intent with this? for 99% of the voters out there, this is a total snoozer. it means nothing to them. who is she trying to impact with this particular proposal? >> i think it is about progressive leaders saying i am going to be tough on wall street. i'm not going to back down. i'm going to be willing to make

them pay their fair share. i think this is about elizabeth warren about bernie sanders. and this is about being able to make the case that she is going to hold quote/unquote wall street accountable, try to rein them in a little bit. i don't think as far as what the left is concerned about, i think they say this is nothing. this is small potatoes. i think she is trying to walk a line here. i think she is going to make everybody unhappy. >> john kasich i've got him on. >> i do. this is his first -- if it wasn't for donald trump, we would say the most colorful guy is john kasich. he is a blunt talking kind of guy. he could play well in new hampshire. he is probably the candidate that scares jeb bush and hillary clinton the most if he ever gets off the ground.

he is the only governor running that is still popular in his state. >> didn't he win the african-american voter and women? >> he won all but two counties in ohio. the most important swing state in the country. he did it -- so he's got a good electoral and political resume. the problem he's got is i think, to conservatives, he seems like a turncoat. he embraced the medicaid expansion on obamacare. liberals look at him he took on the unions. he is going to have a hard time gaining traction. i think if he does in a general election he could be a very competitive candidate. i don't know how he gets there. >> got it. thanks, chuck. we'll be watching. can't wait. >> all right, guys. >> bernie sanders and those weird articles he wrote years ago about women. the sheriff of wall street is back. he is hoping to catch insider

buying through a new website. he is trying his hand at new york real estate. he's an old hand at real estate. former new york governor eliot spitzer joins us live at nine.

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wouldn't it be great if individual investor does see all analyst ratings on stock in one place? you can. it's called tip ranks. ranks. and elliot spitzer, former governor and former attorney general of new york state, now a board member at tip ranks, also an investor correct? >> absolutely. i believe in it. >> we've had you on before to talk about this. the reason we have you on today is you've got a new feature that's about analyzing insider selling and insider buying among ceos right? >> yeah. >> what's the big win here that's different than other sites that do this? >> so there are no other sites that show you what -- i mean there are many other sites that will show you what insiders are doing but we actually show you what it means. you can go anywhere to see hundreds of transactions every day but these transactions are extremely complicated because there are. different types of transactions stocks you that buy, stocks you that sell. and we know how to distinguish between informative transactions and non-informative transactions

but we also analyze the performance of the insiders. so we filter out all the noise and see who are these people that know how to time when they're buying stocks. >> i've got a question. i'm all for more information. more information is better for people. but you know the old saying, which is past performance is not indicative of future performance. and i think most statistical studies have shown that whether it's insiders or analysts that nobody really knows what they're doing exactly. and the few people who do end up rich, whether they deserve it or not. unclear. but over time there's very little statistical evidence pointing out to the analyst who always gets it right or the ceo who always knows when to buy and sell his company stock. isn't that true? >> we may even agree with you that there isn't any predictive capacity necessarily, but this company was founded by uri on the principle that there was so much misinformation out there being proffered by analysts that the idea is give people a place to filter out the bad stuff. you go to this website, you see which analysts are good and

which are bad, who you should completely ignore and you get to measure their past performance. you can rely on that or not. and with the insider this feature's amazing. it shows you which insiders when they buy have outperformed and by how much. what you do with it is up to you. but this is information transparency the way nobody else provides it. >> right. >> and let me answer your question in terms of a data-driven answer. we back listed all the information going back to january 2009. and the first thing we did was just ask ourselves let's see what happens if i buy a stock and sell a stock whenever i see an insider, a c-level executive or director doing it. so we found that if you follow buy transactions you you will make on an average 0.82%. which isn't that high. it's still nice if you buy it and sell a month higher. insiders that sell stocks are actually losing money. but then we started the slicing and dicing and found if you follow ceos and not just every insider you're going to reach 3.66% return on a monthly basis. and an interesting experiment that we did that should answer your question is a fact that if

you followed the top-performing insiders those that have historical high performance, you will get to 5.68% every month. you just need to buy when they're buying and sell a month later. i mean obviously there are many different ways to measure it. that's a pretty strong correlation. >> you've gotten your pitch in. can we change sukts?bjects? >> it depends what it is. i'm a new yorker. >> what do you make of uber in new york city? it's facing this all over the world. >> i am a huge fan of uber. technology is changing the way we -- >> wish you'd invested in them. >> i'm glad i got -- i wish i'd invested. but i think technology air bnb, these are companies that are providing technology answers to problems out there. information flow. look, i think the mayor has a legitimate issue with traffic patterns. we live in new york. we know traffic's bad. we've got to solve that. but you don't take it out just on uber. there's a way to do this smart. uber's a great company and i think it has contributed to transportation around the world.

hats off to people who bring technology to bear in that way. >> the comptroller of the city said that taxi coalition had been investing in politicians and not in their own technology. do you think -- >> exactly. >> do you think that's correct? >> yes. >> you know, look i don't want to malign people. i love cabbies. i don't want to speak negatively about somebody. about i think like many companies or many sectors that had had a monopoly protected by a government they hadn't invested, they hadn't incorporated technology because monopolies don't invest in technology. they don't need to. that's why we don't like monopolies. competition works. i've been saying it my whole career. >> your fellow real estate baron donald trump. >> i'm not a baron. certainly not the dimension that he talks about. but that's all right. >> what do you think of his candidacy? >> look, i -- >> you don't think it's real do you? >> i'm staying out of presidential politics, but let me say two things. one, i think i have always been a deep believer that immigrants have made america. i think we protect immigrants, we honor them and we speak about them in welcoming words, not the way he did. two, john mccain whose politics i may not agree with is a hero.

if you've ever been to the hanoi hilton, seen where he was, his decision not to come home his decision to stay there because he knew he was being used by the north, he is a heroic american, and i've met him. i honor that man and i think we all should. >> it is a great -- >> you know i'm a democrat. >> i want to say this. and congratulations to you. >> can i go back and talk about tip ranks? uri came over from israel are for this. >> this is a country with second chances, right? aren't you a perfect of example of that? how you've reinvented yourself. >> i don't if i have. but yes, thank you. >> ti ask a question about tip ranks or are we done? she runs a very tight ship. >> enjoy israel. good to have you here in new york. he's right. great to have you, governor. >> thank you very much. >> just when you thought smart cars were safe maybe they're not so smart. earlier this week hackers proved they could easily infiltrate a jeep software system. now fiat chrysler's taking action because of it. should we all just stick to

public transportation? the panel is going to weigh in. it's a fact. kind of like shopping hungry equals overshopping.

at ally bank no branches equals great rates. it's a fact. kind of like mute buttons equal danger. ...that sound good? not being on this phone call sounds good. it's not muted. was that you jason? it was geoffrey! it was jason. it could've been brenda. fiat chrysler announcing today it will recall 1.4 million vehicles to update a software issue. the recall is related to a video

released earlier this week in which software experts were able to remotely hack into a jeep and control the car's function from miles away. eliot spitzer's back with us. you wanted to prosecute these guys didn't you? >> no. but this is a scary story. this does speak to the larger issue with technology dominating everything. we began to see it 20 years ago when i was a.g. information flows. there is both no privacy and people can hack into virtually everything. they can drain bank accounts and they can drive your car. that's scary stuff. >> yeah. the weird thing is i think people should always expect the worst in terms of people's behavior and technology and they should act accordingly. >> meaning they shouldn't drive or what? >> you shouldn't put your credit card information online. >> but you get in a car assuming you're safe. >> and you control p. >> basic things yes. >> i have onstar. i remember the first time i heard this voice coming out, somebody knew where i was, where i was driving, was talking to me this discombobulated voice. kind of weird. but taking over the steering

system is -- and the brakes is scary stuff. >> great to have you here. >> thank you. >> we really appreciate it. that does it for us on "the closing bell." wonderful you have to here on this friday. enjoy your weekend. "fast money" is up next. live from the nasdaq marketsite overlooking new york city's times square. this is "fast money." i'm melissa lee. the traders on the desk are tim seymour, david seaberg, brian kelly and guy adami. tonight on "fast" it is official, oil in a bear market. and one of our traders thinks this is only the beginning of the slide. we'll tell you what it is he's looking at. plus socially awkward or socially acceptable? facebook twitter and linkedin on board for results next week. which name could bring the biggest surprise? our traders take their position. first to the big story, the dow closing to near session lows having its worst week since january and is now negative for the month. meantime the s&p and the nasdaq were busy logging their worst weeks since the end of march. more pain to come especially give