at says they're going to start doing business with brokers. so companies, we're the largest broker in the world. we're the liquidity for the wholesale markets of fixed income. that's where i think the world's going. >> thanks a lot for coming by. ryan, that does it for us. >> all right, melissa and howard. thank you very much. "closing bell" starts right now. hi and welcome to the "closing bell," everybody. i'm kelly evans of the new york stock exchange. >> no news is good news for u.s. stocks today apparently, stocks rallying after the fed showed no clear signs of raising interest rates any time soon. the industrial average had been up 80 plus points when the announcement came out at 2:00, it's now up 132. it's been a zigzagy kind of afternoon for the market here. >> we are near market highs of about 140 points on the session with an hour to go here. we've got an all-star roster of guests coming up to help you break down today's fed decision.

former fed chair alan greenspan will join us. a new program we're monitoring. that call and any news out of the conference call as he examines a tesla. right now. >> relatedly, we do have solar city. >> did he help build those cars? work on the assembly line? >> there are teslas everywhere in norway. one of the biggest usages hydropowered, as well. it's so interesting. so anyway we have earnings coming up here, as well. earnings getting crushed after weak guidance on the company's conference call last night. down about 14% right now. investors are looking to see whether facebook can deliver now after the bell. it's up about 1% today. we've got a top tech portfolio manager who says there's only one number in facebook earnings that matter.

he'll tell us where it is coming up. >> but let's get to fed headquarters in washington where steve liesman is standing by with more on today's announcement. steve? >> hey, bill thanks. the fed leaving interest rates unchanged in july as expected. but the question is whether or not it hinted at a rate hike to come in the next meeting. on the one hand, it upgraded one part of the equation needed to raise rates. jobs, but it left the other part of the equation unchanged. that's inflation. the feds said they were quote, unquote solid job gains suggesting it moved a step closer in that criteria needed to hike rates. even suggesting it was already there. it also suggested, really by saying it'll hike when it sees, quote, some further improvement. not just improvement. it doesn't need very much to get there. but the fed characterized inflation in virtually the same terms that it used in june as running below its 2% target and likely to only gradually rise in the medium term to that target.

so, no progress there on the second criteria. that means, a september hike still depends on strong to moderate job gains in the next two reports before that meeting. and it depends, of course on inflation that doesn't slide backwards even amid lower commodity prices and slowing global overseas growth. so was there a hint? yeah. there was a hint. the fed is going to make up its mind when it sees what job growth and inflation do before the next meeting. so the question i don't know is that much of a hint at all, bill? >> i don't know. is it much of a hint? >> steve what i was going to say, though, looking at last statements before the fed has risen interest rates. it's not that passes necessarily, prologue but is this really kind of language they're going to leave us with if they're going in six week's time? >> yeah you know, i reported that pretty extensively with some background conversations. they are not going to drop a hint that is as explicit as the

last time they did this back in 2004. i think you have a guy on who did drop the hint a little bit later. what they wanted to be they do not want to use calendar-based guidance. by the way they're a little bit critical of how former fed chair handled that last round of hikes, making it too predictable, they thought, that is not the way they want to go. they want you to do very simple. read the first paragraph about how they characterize the economy, and then read the third paragraph about the criteria for hiking. if one matches three, they're going to hike. if it doesn't, they're still on hold. >> yeah i wonder if mr. greenspan's going to bring his infamous briefcase and if it's stuffed. we'll have a sense of when they're going to raise rates. steve, thanks very much. we'll see you later. >> pleasure. >> all right. joining our "closing bell" exchange with their thoughts about the market and the world, we've got kate from edward jones here at the post 9:00 and peter

costa from empire executions and rick santelli in chicago. said yesterday when the announcement comes out, there'll befire be fireworks for about 15 minutes. we are higher than we were at that time. is the market still of a mindset it doesn't want the fed to raise rates anytime soon? >> the market is showing that any rate hike preferably one that was later out would help the economy more than it would be if it happened in september. but to be honest with you, i think that, you know, you listen to thank god for steve liesman. let me tell you something, i saw the -- read the comments is and i couldn't figure it out from the beginning. >> you're not alone. >> yeah, i mean, it was a lot of of -- >> fed speak. >> not giving you any kind of indication, anything. you know, leave it up in the air like they've done it for the last four or five meetings. you know i think we're probably not going to see a rate hike for a while. i think that the economy you know, i know i'm digressing here. but i think that the economy if

you look at the employment numbers, yeah, they're getting stronger. but when you have stronger employment numbers, you would expect to go up concurrently. and they're not really as strong. so i think there's still some room there. >> kate how are you reading the tea leaves here? >> well i think the fed made it clear that they're considering raising rates, which, of course we all know. i think they did not do anything that suggests whether it's september or october or later. and they clearly trying not to. but i'd take away a really important change, which was the characterization of the labor market as stronger. and i think that's important because more jobs means more spending, and that's exactly the virtues you virtuous cycle the fed would like to see. they'd like to see higher wages. and i think that's not likely to happen anytime soon. but i'm not sure they're going to wait around for higher wages before they begin to raise short-term rates for the first time. because they'd like to change the conversation from when do they raise rates to how fast and how much do they raise rates? and i think the sooner they do that, actually the better the

market is and the better the economy is. >> yeah, we can't wait for that first liftoff so we can move beyond that. did you see any hints in the markets after the fed announcement of which way the market's betting right now? >> yeah they're not betting as though there's going to be any aggressive normalization of rates anytime soon. but, differentiate that from the potential for a lift in september, even though i'm not sure we're going to get it. but we could get a lift in september. i guess we could get a lift in december. but i think now the discussion in the marketplace has moved beyond that. i think it's now how we're going to see how small the first one is and how they promise that there won't be many more. and i think some of the long-term dots are where they see overnight rates in 2016 or 2017. i'm not sure that holds water. so i think in the end, everything everybody's talking about most likely is correct. if you're really being data dependent, there's a lot of reasons maybe not to do it. but the overwhelming two reasons

to do it they have no encore performance should disaster in any front of the financial sector on any continent strike. and maybe the other is we are in a 2% to 2.5% economy. that doesn't justify zero. >> we will get the gdp number in a couple of days. we're going to focus. yeah, tomorrow, thank you, rick. that consumer confidence number, kate was not good, though. has people wondering if we're going to see a slowdown next time around. you know, to the underlying point here is this economy strong enough for the fed to raise rates? >> well i think the economy actually is strong enough for the fed to raise rates. while we don't know what the gdp report will be certainly it looks like second quarter growth was a lot stronger than first quarter. i think everybody agrees on that. we see growth moving forward at about 2.5% through the second half of the year. that's strong enough not only to

lift consumer sentiment, which i think really was driven by other things. remember, that sentiment poll was coming out with greece was in the headlines and everybody was worried about things that were foreign, not domestic. the more you focus on the domestic economy the stronger it looks. it's not going gang busters, but really strong enough i think, to give the fed a good argument for why they need to keep rates or move rates above zero. >> peter, let me move you off topic on to oil. we just showed the graphic that crude oil's been up 1%. that inventory report was pretty bullish for crude oil. and that seemed to spark the rally in stocks earlier today. there are those that feel that maybe some of the drillers and other integrated oils are dirt cheap these days. do you agree? >> oh, my god, yes. >> if you look the a anyat any part of the energy sector, you find a lot of value. if you buy a well-positioned oil refiner or an explorer.

demand will pick up in the u.s. and that will spark the stocks to go higher. >> does that mean the peter costas money is back in the market? >> i hate to give a hint to all of those people that try to trade ahead of my positioning, but i would like to say, yeah, if my money was going back into the market it would go into the energy sector. >> thank you guys really appreciate it. >> thanks folks. >> good to see everybody this hour. china, meanwhile, dominating headlines is wild card for wall street. take a look at what's been happening in brazil meantime. >> yeah s&p putting brazil on negative credit watch. investigators there shrugging off the news though but should they be paying closer attention. our chief international correspondent for once not in athens, michelle is back with more on that story. now we worry about brazil. is that the idea?

>> for sure brazil a big producer, as is a lot of latin america. and in fact just today, reports when they surveyed the vast majority of economists think brazil's going to be downgraded to junk at some point. right now, just one notch above junk. they warned they reduced their outlook, potentially downgrade brazil to junk which would be an immense comedown for this country. because when it was upgraded to investment grade back in 2008 this was considered a watershed moment for brazil and for latin america. that part of the world had finally arrived. but, boy have things changed. s&p was focused solely on political issues in brazil because there's this epic corruption scandal going on there involving dozens of politicians and ceos and threatens the current and past president at this point. we want to show you three charts. first, let's show you iron ore. look at what's it's done over the last two years.

even though it's rebounding today. why do we care about it? because it's brazil's number one export. it is the world -- brazil is the world's second largest export of iron ore. who is the biggest consumer? china, of course. let's show you soybeans another major export for brazil. it is -- take a look it's also declined sharply down 21% over the last two years. it's the world's second largest exporter. who is the biggest consumer? china, as well. and then sugar which is the third largest export. they are the number one exporter in the world. look at that. that's a stock down commodity that's down 32%. china is the second largest importer. so they face head winds on what is supposed to be one of the biggest drivers of revenue for the country, guys. and things maybe are just getting started if we see this selloff keep on going. >> if we're coming off this bubble, what options does that leave brazil with in near term? >> wow, they'll have to do massive things like really cut budgetary spending which is already leading to a bigger

political crisis than the president there had planned originally. there's questions about whether or not they're going to be able to achieve that. we talk about austerity in greece. they're going to have to start talking about austerity in brazil that's going to lead to bigger slowdown. they're also raising rates at the same time to preserve the value of the currency. they're in a pretty tough bind. >> how soon before we see you in rio? >> i'm wondering myself. >> thanks, michelle. see you later. >> rally mode this afternoon with the dow now up 121 points. the s&p, once again, the outperformer percentage wise with a gain of 14 almost 15 points here. >> facebook whole foods, those are among the big names, reporting earnings less than an hour from now. we'll do a deep dive on facebook next. as investors are suffering quite a bout of social anxiety after twitter's sluggish revenue growth, sluggish growth i should say. >> plus our fed coverage

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what's interesting is the lock-up period has expired on shares owned by company insiders and major shareholders. typically, when a lock-up expires, kelly, the stock will go down. insiders are able to finally sell their shares. let's remember, this is a stock that came public the end of january at the end of $21 a share. and today it's trading above $61. >> twitter getting crushed today over concerns about the monthly active user growth. cfo addressed that issue in last night's periscoped conference call. >> we did not expect to see sustained meaningful growth until we start to reach the mass

market we expect that will take a considerable period of time. we'll unlock value for shareholders by ensuring discipline execution. >> love the conference call last night. that's perfect. joining us no uh, kevin landis. his fund holds both twitter and facebook. which we'll talk about briefly, as well. kevin, you know, a lot of hand wringing over this. this is a company that has more than 300 million users. why can't they figure out how to make money with this thing? >> well 300 million sounds like a big number until you look at facebook and google's numbers. google figured it out a long time ago. it's still hard. they've got a great franchise. i don't think there's a second place where you can go to tweet.

>> they're struggling to make tweeting a first place thing. i mean anthony's remarks were about them breaking into the mass market. what more is it going to take? they've been around for 7, 8 more years than that. by now, are they missing their moment? >> well, you know, people who tweet they use twitter all the time. and we've pretty much established that population. but, you know, you pick up people's tweets. i mean my newspaper has the tweet of the day that gets printed on paper, right. so i don't need to go to twitter to see the funniest tweet in the sports world. it's on the local sports page. i think that's the problem. is that people who, people aren't dependent on their twitter feed the way they are for say, their newsfeed in facebook. that's the big difference right now and that's what they're struggling with. >> what should their new ceo, whoever that's going to be do to try to turn thing this around. give them some advice. >> well, the good news is you

want to set expectations that are reasonable level so you can exceed expectations each quarter. so mission accomplished on that. i think they've done that. then, i think they need to be relentless at growing the user base get the user base growing, making it an important part of people's everyday lives. and then the other side of that coin is going to be working with advertisers. i mean, today if you're -- if you're in charge of a media strategy for a big company and don't have a twitter strategy you better have your resume up to date. you're going to get fired for it. twitter, on the other hand, you won't get fired for not spending money on twitter. you can take a wait and see attitude. that has to change. facebook's a must buy. you must go there. twitter has to become that. and, that means better tools for advertisers, and it means a growing user base. >> you mentioned facebook kevin. i want to remind people what we heard as well about their

potential to monetize instagram. what does that mean? as video -- and photos and video become more lucrative here, what do you expect to hear from facebook today? >> that instagram is growing like a weed. and that people are projecting that it's going to grow to just an enormous size, but i can tell you after being at this for a while, it's always -- you're kind of taking a stab at it. you don't know where the numbers are going to come in. where you do know that's exactly where you want to be. mobile and based on video. and that's -- the instagram purchase. boy, can you believe they paid $1 billion for it? it seemed outrageous at the time. now it seems outrageously cheap. >> it wasn't too long ago. nobody could get out of their own way. now, they are the king of the hill there. kevin, good to see you. thank you as always. >> thank you. >> meantime tesla's elon musk on a conference call right now announcing an experimental refer a friend program under the new program, anyone who orders a new

model "s" before september 30, using the rereferral link will get $1,000 off the purchase price. and the current owner will get a $1,000 discount that can be applied to a new car or accessories. phil lebeau is on that call and will bring us more as soon as he has it. >> in the meantime we've got about 38 minutes left in the trading session here. a modest rally underway with the dow up 121 points. had been up more than that. you had an oil rally earlier, fed statement out. they like what they heard, apparently. >> look at that. and it's not just facebook posting earnings after the bell. we're also going to hear from whole foods and wynn results. we'll preview the numbers the moment they hit the tape. >> alan greenspan -- >> first rick reeder and adam parker also weigh in with their thoughts and when they think the fed will finally pull the trigger on interest rates.

that's coming up next. stay tuned.

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still no rate increase. no real hint either. but our next guests are still expected to see a rate hike some time later this year. so what would that mean for the equity and the fixed income markets. >> let's ask. joining us exclusively right now. rick reeder from blackrock. and adam parker u.s. equity strategist at morgan stanley. welcome to you both.

>> we're having a high-level meeting here on fixed income and bond strategy. mr. fixed income. >> i think we're inching our way. they opened the door to go in september. i think you tweaked that door open a little bit. we think they're going to go and the fed's been pretty clear. and they expect to go in 2015. the statement today may changed a couple of words. people are talking about the word sum was inserted. there's a lot of diagnosis -- i think the odds are 60/40. >> up 132 points -- the dollar mixed. what is that telling us? >> i don't think i learned anything. >> i think we're still in that pocket. we're constructive on the u.s. equity market.

i've got that up and bottom of earnings up too low. a likelihood the u.s. economy's a little bit better in the second half and the first half. and despite the fact we're about 1% from the all-time high in the s&p. i don't think sentiment's -- >> is any of that going to change, adam when we finally do get a rate increase by the fed. >> my view is there's a risk that the market goes much higher. there's a bit of a release. i think people sell if the fed ruins the cycle. but i think the reality is, it's not going to affect that much. i think probably more interesting stuff what happens underneath the market. you know maybe you get more bullish on financials. we made that call in april, trying to go overweight financials. maybe you sell the rate sensitive roll-ups or biotechs. i think a lot of movement in the microstructure. but i'm less convinced it's going to be a negative for the equity market. >> we heard jeff gunnlock telling us it would be a mistake given the conditions for the fed to raise rates for now. yes, everybody is itching to do it. as they've indicated. but the conditions just aren't there to warrant it. is he right?

>> so i don't understand the conditions not being there. we've created more jobs in the last two years than the prior 13 combined. you're approaching a 5% unemployment rate. i think you have to think about where we are today. the funds rate is at zero. and, actually, if you take the 4.5 trillion on the fed's balance sheet, the effective funds rate is negative 2% to 3%. it's not a question of are you tightening policy? we're at excessive emergency conditions and doesn't make any intuitive sense we're here. and by the way, i agree if you move the interest rate 25 basis points from an incredibly low level, what's the big deal? i don't think there's any implications iffer the economy or markets. >> one thing they're waiting for is inflation to hit the target. should they wait that long? is that the appropriate target at 2%? or should it be something a little lower? >> listen i think there are so many governors on keeping inflation down in the world. and i'm a big believer in technology dulls the inflationary impulse. think about what's happening in energy. this is not a negative in the economy. what's happening in global growth. i think it's medium term

inflationary expectations. as long as they are approaching the target and it looks like the economy has momentum there's plenty of room for them to go. >> adam just picking up as you were saying doesn't feel like a market that -- we're there, but not really there. maybe a good sign of the longer term. but leon cooperman said to us the public is scared of equities. >> i happen to agree a lot with lee. to me in order to walk in and call the big top of the market i've got to see a deterioration in the economic conditions see delinquencies or housing really slow. i've got to see arrogance from the management teams, a lot of capital spending hiring inventory build. or i've got to have much more fear about the credit cycle. and i think the artifact of qe is companies pushing off the financial obligations a few years. i think it's hard to make a real negative call. i think what's interesting, you might have low growth but a very long expansion. and that's our view of the world. i really agree with rick. i think if you walked in and said here's what the economy looks like unemployment et

cetera, et cetera you would never have 0% as the front then assigned with that set of economic conditions. and our house view is they'll do it this year. >> limited time but we're not living in a vacuum. we have to worry about asia and europe at the same time, and those buyers come over here and buy our treasuries that push the yields down anyway. >> totally. >> what do you see especially in the long end, what is it you see it doing by the end of the year assuming the fed does raise rates? >> we've talked about this before. we think rates are going to drift moderately higher. the demand for them overseas is tremendous. ecb is not going to move for a while the bid for long dated ponds in the u.s. is this historic window that you've got a tremendous buyer base and monetary policy around the world. it's easy. it means your move will be dulled by what the rest of the world is doing. >> all right. rick reeder adam parker from morgan stanley. >> good to see you. >> thank you. >> appreciate it. >> and time now for cnbc news update with our sue herrera.

>> and here's what's happening at this hour. >> the white house says president obama would sign into law a highway bill if congress sends him one. considering a three-month extension of that bill before they go on a vacation break. the white house also declining to provide an update on the review of the proposed keystone pipeline saying the state department's handling that process. a decision has been delayed for more than six years. the son of a boston police captain pleading not guilty in connection with allegedly plotting an attack in support of isis. 23-year-old alexander chicilo arraigned in springfield, massachusetts. the fbi alleges he was plotting to release pressure cooker bombs at an unidentified university. and patriots' owner kraft blasting the nfl for holding up the suspension of tom brady for

deflating footballs during the afc championship game in january january. >> it is completely incomprehensible to me that the league continues to take steps to disparage one of its all-time great players, and a man for whom i have the utmost respect. >> and if you saw some of that news conference, it was a very angry and frustrated robert kraft. that's the cnbc update at this hour. back to you guys. i don't think it's over. >> no it is not. >> by any means. >> robert kraft, one of the most respected owners in the nfl, and he's not happy about how this has happened. and they are the super bowl champs. it's a mess. >> it really is. there are some people who say he should let it go stay out the four games and -- >> i don't know. >> i don't think that's going to fly with him. >> he's under a lot of pressure for destroying that phone. but there are other recipients of the messages.

>> absolutely. >> and it's not uncommon even those of us who get fewer messages know. for a phone to be replaced every couple of months. >> crazy. >> thanks sue. >> see you later. >> dow's up is 18 points. the s&p, let's see, up about 14 right now. we are coming off the highs. on the dow. >> it'll be interesting to see what the bias is on the close. more on the fed, though in the meantime. alan greenspan will speak with us exclusively in a moment. where he sees signs of a bubble building right now. that's coming up after this.

welcome back, less than half an hour to go in the session. what are you watching into the close? >> the fed has become good at not alarming the market and not soothing at the same time. i think that's what we're seeing today. it's about what i expected. they see a lot of things i don't see per se. it seems like with the housing, we take one step forward, two steps back. they see a better labor market than most people in the united states seize. i think what's curious, they're

still not lifting off of the interest rates even though we have an unemployment rate of 5.2%. if you look back historically they'd be raising rates by now. the markets are digesting it. it's going to trade where we want it. don't fight the fed. >> is it possible that the data whether it comes from china, falling oil prices spoils the party and means that september isn't when the fed raises rates? >> well if you listen to what they've been saying the last couple of months i don't think they're focused all that much on it. they've dismissed anything that the imf and world bank said. they're looking internally and don't see the improvement that they want to the slack in the labor market. they still want to see inflation get back there. we saw wage gains go down in june. that's a big part of it. so the calculus is still for september. but we may be waiting out until december. and then we have still a fairly boring market and boring economy. >> well, are you surprised? this is still a triple digit rally by the dow here. >> and it's only going to get larger. we got the latest word on imbalances in the close. it's going to be in big print.

we may see the russell get back up there and the dow and s&p 500, as well. >> bill? >> all right, kelly, thank you. so fed chair, the federal reserve overall said the labor market here in the u.s. continues to improve, it still gave no hint of when a rate hike might take place. of course, on a global scale, it's been a rocky summer for the markets, especially for greece and for china. we want to talk more about u.s. economy where it might be headed. we're joined now on the cnbc exclusive. we have, pleased to welcome back former fed chair alan greenspan now president of greenspan associates. mr. chairman, good to see you again. welcome back. >> good to see you, steve. thank you. >> growth in household spending has been moderate it said. housing sector shown additional improvements. solid job gains, declining unemployment. are you as constructive on the u.s. economy as the fed is right now? >> well i don't want to characterize where the fed is. i will just say that i'm in the place that i've been for months. which is basically that we are

in a period that is some form of secular stagnation. in very specifically, we've got extremely strong and growing labor market. all sorts of measures including openings in a lot of activities are now beginning to open up yet there's very little pressure here in the economy. and the reason essentially, is that productivity growth is extraordinarily low. and, indeed, at record low levels. >> alan dr. greenspan, concerned about the underperformance of the u.s. economy. what about signs of exuberance if you see any in financial markets? >> in the united states? >> sure. >> yeah, well, i think we're -- have something to a bund bubble. and that's essentially, if you

think of it in terms of price earnings ratio. now the price earnings ratio in the bond market is high enough so that we're that in the stock market, we would be worrying about it. and i think we ought to worry about this because interest rates are below where they historically have been for generations, indeed, for millennia. >> are you as worried about a -- i know you worry about the bond bubble. are you worried about liquidity in the bond market? some bond market players are. and i don't want you to speculate when the fed will raise rates, but those fears are when they do start to raise rates, there'll be those heading to the exits, and there won't be enough liquidity in the bond market. are you worried about that, as well? >> i think we've never been in a position such as this, so. very difficult to be definitive as to what might happen or might not happen. but, remember liquidity fundamentally is a psychological issue.

we have periods of tremendous amount of liquidity in the past which disappeared virtually overnight. human psychology is very volatile and all you need is a slight little tilt and liquidity disappears, as it did immediately following the crisis of 2008. remember, there's all sorts of discussions about synthetic derivatives with vast amounts of liquidity in them. and there's very -- i always find the remarks are never that when he said that everyone will have to keep dancing until the music stops. >> right. >> and that he could do something. well, the trouble is that liquidity disappeared literally in minutes. and that's the type of concern i have when people talk about liquidity. liquidity is important as essentially created in the financial institutions on our

balance sheets. i mean how many liquid assets do you have in that? that's no the test of where the real issues lie. >> well in going back to the strength of this economy and maybe how to pick things up, there's corporate tax reform that's kind of making its way through congress. we're starting to hear from the campaign trail, several different approaches to changing tax rates around. are you hearing anything mr. chairman, that you think would help to boost u.s. productivity growth and growth overall? >> what's disturbing me is not what i'm hearing but not hearing. we're in a very long period of declining gross domestic savings. it's essentially the issue of entitlements going back to 1965 growing at a pace of close to 9% to 10%. and neither the republicans nor the democrats want to touch

that. and the reason they don't touch it is they've concluded that these are essentially the third rail of american politics. you touch them and you lose. to me the discussion today shouldn't even be on monetary policy. it should be on how do we constrain this extraordinary rise in entitlements which the data show unequivocally are eating into the gross domestic savings of the economy dollar for dollar. and that is very dangerous. >> valid warning there. we have to go, mr. chairman. but before we go i'm curious, have you read the new "ayn rand novel. i was figuring you maybe read it back in the day. but you haven't read it? >> well, i was aware of it. i was aware of it as a play but not as a novel, no.

>> right. it's out in both forms right now. just came out this month. well, maybe we'll be reading alan greenspan's review of it some time. good to see you, mr. chairman. thank you for joining us. >> my pleasure. >> 15 minutes to go into the close here. and the dow liking what it sees in terms of whether you want to call it shanghai rallying breaking a three-day losing stretch. not huge changes from last time around. we're up to 127 points. the s&p adding about 16. elon musk looking to sell more cars and asking tesla owners to help him. phil lebeau will have the details when we come right back.

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tesla ceo elon musk is holding another conference call at this hour. >> our phil lebeau dialed in. he joins us now with the details. what can you tell us phil? >> they are starting a referral program, guys. in fact, the conference call just wrapped up. essentially the referral program works like this. it is to spur sales of the model "s." and what happens is that if the current owner of a model "s" refers someone successfully, that current owner will get $1,000 that can be applied to a

new car, service center. the person who buys a model "s," gets $1,000 off the purchase price. again, the whole idea here is to spur word of mouth sales. if there are five successful referral orders that person will receive an invitation to tour the gigafactory's opening. 10 successful referrals, they get the right to purchase a founder series edition. and oh by the way, the first person to ten gets a model x for free. how these word of mouth sales could help even in those states where direct sales of tesla vehicles are banned. >> still -- >> representatives are not allowed to sell in certain states. like, we're not allowed to engage in sales process and sentence dates. but customers who are not salespeople can -- can refer their friends. there's no rule against that. >> by the way, this is an

experimental program. they're going to do this through the end of october. see if it makes any difference. in terms of bringing down the cost of selling cars through their stores which they say cost about $2,000 per vehicle. guys, back to you. >> tesla has morphed into herbal life. is that right? >> seems a bit gimmicky phil. >> well people might say, why are we doing a report about a customer referral program? well, the reason we're doing the report is it's elon musk and it's tesla and there's a lot of interest there. we'll see how much of an impact it makes. it may be by end of october, they'll say, got a few sales out of it. it's no big deal. then, again, they might look and say, one more way to spur sales. >> if it brings in sales, you know that the other automaker is going to watch it carefully. >> thanks, phil. >> thanks, phil. >> you bet. >> i do wish more companies would do this. if you buy the first apple watch, maybe you get to buy the next apple watch at some sort of advantage. >> who did buy an apple watch? >> i know. the point is apple's never had

to do that. it's interesting for tesla to be trying new ways. ten minutes to go into the close. if you thought yesterday's earnings onslaught was big, we're minutes away from another deluge. wynn resorts and the big one tonight, that would be facebook. our reporters are next with what to expect coming up after the bell. work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. by the time police arrive on a crime scene they could have little to go on. a vague description.

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lots of big earnings coming out in a few moneys. our reporters join us to tell us what to watch for in each of those reports. >> we'll start things off with julia boorstin and what to focus on on facebook. >> facebook is all about maintaining the across the board growth we've seen in recent quarters as it adds users and ad dollars. the company's expected to grow revenue 37% to $3.99 billion. earnings per share are projected to grow 13% to 47 cents. investors will be looking for updates on facebook's video ad format, plus a new instagram ad. you can expect plenty of questions about when facebook plans to make money from the popularity of facebook messenger. we'll be back at the top of the hour with the highly anticipated numbers. and if it's jane wells, must be whole foods, jane.

>> right? >> i'm noticing we're all in the same color palate. whole foods is expected to report record sales of nearly $3.7 billion and 9% earnings growth of 5 cents a share. the street wants to know about same store sales growth in the face of a lot of lower price competition. analysts expect comp sales to be up 2.9% maybe less. that's down from 3.9 a year ago. and in that vein what will the company tell us about plans to open up the smaller, lower price store next year called 365 to capture millennials. guys? >> jane wells, thank you, and we'll see you next hour with those results. >> you bet. >> and kate rodgers, tell us what to expect with wynn. >> expected to report eps of 96 cents on revenues of $1.07 billion. the top thing to report would be china. given the dramatic pulplback, investors will be watching to see if wynn's macau business is getting hit as well.

and if macro fears will be mentioned on the earnings call. another thing to watch out for, lawsuits that challenge massachusetts' decision to award win a gambling license in the state. boston revere and summerville all want that revoked in the decision to be nullified. the gaming commission has until july 31st to dismiss the complaints. >> thank you very much. ladies, we'll see you a little bit after the top of the hour there. in the meantime we are coming back, bob pisani and i will have the closing countdown in a moment with the dow down 126 points. [ male announcer ] eligible for

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time for the countdown. mr. pisani joins me very quickly. recap of the day. this is when the fed made its announcement. looked like a richter scale. minor earthquake. we went from 85-point gain to a 132-point gain and then a 67-point gain and finishing the day with about 125-point gain on the dow. oil, another factor today. very quickly, a bullish inventory report. move the price of crude higher as you can see. and it kind of distorts it a little bit. but the s&p also moved higher. that's partly when the rally began, really. in earnest for the market. but wti crude up 1.9% on the close. one more thing, bob, the earnings that are coming out tonight. there they are. facebook is the big one they're watching for. but whole foods, solar city which we didn't get to mention

earlier. >> the market viewed the fed statement as mildly dovish. i viewed it -- the fact they said job gains were solid, that's a very aggressive word for the fed to use. i view the statement as them indicating a rate hike is on the table for september. they didn't hold their hands and say they're going to do it. but it's very much on the table. >> you would think that between now and then. and by the way, kelly mentioned, we're six weeks away from that meeting. we're six weeks away from september. where is the summer going? we'll start getting major hints if they plan to do it at that time. don't you think? the feds -- >> i would hope -- >> again, they're data-dependent. if the data gets better they're going to give louder hints. the other, proxies will give louder hints. that's why they're going to telegraph -- other than that two days in a row, the sectors have been the leaders. dow transports industrials, energy and the beaten up steel group. two days in a row, we've almost got a trend going here where we've got the most beat up

sectors now rallying in the last two days. it's a very good sign for the market. >> we'll see what happens. thank you, bob. up 120 on the dow as we close things for this wednesday. stay tuned, now. the big number to watch for for tomorrow will be facebook's earnings coming out momentarily on this second hour of the "closing bell" with kelly evans. i'll see you tomorrow. thank you, bill. welcome to the "closing bell," everybody. i'm kelly evans. and we've got another earnings parade on tap. let's begin with our finish in the day on wall street in which we got the results and the federal reserve's latest policy meeting. market taking it pretty well. the dow closing up 120 points. the s&p adding 15. the nasdaq adding 22. and as mentioned, things are going to get pretty busy here again, after the bell. we've got all of these earnings covered for you. we've got our julia boorstin to bring us facebook results. jane wells covering whole foods. kate rodgers on wynn resorts and josh lipton.

thanks, everybody, for standing by on that. and here onset with me now is michael santoli with our own jon fortt and guy adami. welcome one and all. and let me kick it off with you, did the markets like the fed decision here? or is there something else going on here? >> well you said it earlier, china rebound has a lot to do with the fact that the technicals in the market, the s&p specifically continue to work. 121 is the level. yes, i know it traded below and closed below, but within a whisper of 121 bounced off those levels and the fed had a lot to do with it. the market doesn't want to break those levels. everybody's looking for it to happen. doesn't want to happen. it happens when you least expect it. right now, the trajectory continues to be higher. >> yeah mike we have a nice two-day rally shaping up. maybe you need to stick around. >> exactly. i'll be back tomorrow if you like. no surprises, no sudden moves in all the other macro markets.

vix down toward 12 again. and i'm going to point to that level of 2,100. we've crossed it on a given day. just a round number we keep wearing out right now. >> and you mention the vix. it's extraordinary to think it took so much effort, you know, through everything in there. different things happening to get us up towards 20 which did we cross it? maybe we did briefly. >> well and then you have the weight of summer which should have a slowdown effect as well. >> all right. let's begin with our earnings. facebook's results are now out. let's get to the numbers. >> that's right, kelly. facebook results coming in better than expected on the top and bottom line. the company reporting non-gaap earnings per share of 50 cents. also revenue coming in at 4.04 billion. this versus expectations of $3.99 billion. and that's a revenue growth rate of 39%. the company said that excludeing foreign exchange that would have been a 50% growth rate for

revenue. looking at those user numbers, which are such an important indicator of facebook's popularity, the company has 1.49 billion monthly active users. that's up 13% year-over-year. daily active users, now 968 million. we're going to continue to dig through here and we'll be back to you with more. >> julia, thank you very much. we're also going to break down those numbers, even more when we speak exclusively to facebook's chief financial officer david wehner in a moment. so everyone knows and can seen o the screen facebook shares are down in response to this. >> yeah the top line numbers look good. not overwhelming. i mean that 4.042 beats the consensus. but that's what a lot of analysts were looking for. the 50 cents is pretty strong. what i want to see is what facebook has to say about expenses. clearly the fundamentals here look pretty good. the user growth in general is on

track. but investors got really excited from google on how they said they were going to be disciplined about expenses. facebook said a couple of quarters ago, we're going to spend on certain things to fuel growth in the future. how are they tracking with that? are they continuing to spend or are they going to pull back a little bit? this stock has run a bit. especially last week and the week before. >> sure and we saw baidu get hit, as well. >> what's catching your attention here? >> a few minutes ago, the fact that you had the huge run-up in facebook post google. what worked for facebook is google. i think this quarter is fine but probably not good enough given the run we had. that said i don't think facebook is ridiculously expensive. . i think any pullback you're seeing now is going to be

bought. >> mike? >> i agree, not a blow away beat on the top line. probably what people were positioned more for: maybe you could ask the cfo, don't they get another eight years before they have to waive the expenses? >> yeah, and i think the day of earnings is a little bit weird. you can only judge so much. if you look back three months i think facebook was trading, in the high 70s. mid to high 70s after earnings. people felt okay about it. it's new data. people have a while to digest it, see what's going on in the broader landscape and had a different reaction over time. i think you've got to keep that in mind. just what happens after hours as soon as this release comes out, could be different based on of course, what's said on the conference call. and then how other things shake out over the next -- >> they didn't get very granular on instagram.

but we'll be asking for more clarity on that and we'll be hearing more on these earnings that we are expecting on the conference calls this afternoon. you know, guy, facebook, i understand expectations are pretty high. they didn't blow it out of the park. but compared to twitter yesterday, isn't this good enough? >> that's a great point. there's vastly different companies in terms of where they are on the maturity level of things. facebook is vastly superior in terms of speaking to the market. obviously, you saw what twitter did yesterday. they opened their mouths the stock drops $8. although they're similar and this is a much better quarter, the fact it's run up as john just mentioned from the mid-70s to 98 99 1/2 over a week ago, leads me to believe this pullback is healthy. i think the quarter's fine. love to hear what they have to say. and i think this needs to be bought, fb. >> it's really not the same kind of category of company.

>> the shares down 5% after hours. let's get you whole foods quarterly results out. hey, jane. >> hey, kelly, the stock is way down. miss, miss miss. revenues for the quarter came in at $3.6 billion. the street looking for about $3.68 billion. earnings, 43 cents a share. the street looking for about 45. sales coming in at 1.3% growth. the street was looking for at least 2.9%. 1.3%. so, obviously, growth has slowed dramatically. its outlook for the next quarter eps. whole foods is saying 34 to 35 cents. and for the full year. while it still says sales growth of approximately 9%. that before had been 9%. comp store sales growth in the

low single digits. that's a lowering from earlier. 38 new stores at the low end of what they said earlier, and so we're expecting more on the call about what they're going to do to turn this around. kelly? >> yeah. miss, miss, miss as you said there, jane. thank you very much. we're going to get more with julia boorstin. just looking through the results, the only number i can see maybe missing street estimates would be daily active users, 968 million versus 970 expected? >> daily active users according to street account said the daily active user was 960 million. that number was better than expected. just wanted to point out a couple of key things here. a key driver for facebook, mobile now comprises 76% of advertising revenue up from 62% in the year ago period. and there's been a lot of attention on the capital expenditures. the company's capital expenditures were 549 million, lower than the 702 million that

was projected by analysts. >> wow. >> capex coming in lower than expected. and digging through the numbers here. i mean, the company has had upside surprises in the past several quarters. but they were better than expected. the percentage of users who access facebook daily is 65%. that's right in line with last quarter's numbers. that means 65% of people who access facebook do so on a daily basis. pretty impressive as it grows to 1.5 billion users, basically. >> those shares still in the red, and we will be speaking with the cfo in a few minute's time. casino giant wynn out with the results. kate rodgers with the numbers. >> kind of an ugly report here for the second quarter. the hotel and casino giant reporting eps of 74 cents. the street had been looking for 96 cents on revenues. $1.04 billion on the quarter. the street had been looking for $1.07 billion for the quarter. now in terms of the property

revenues for the quarter, macau, what a lot of investors are looking for here. $617 million in macau for the second quarter. now, that is a 36% decrease from the year prior. in las vegas $424 million for the quarter, that's down 6% from one year ago. this conference call of course kicks off at 4:30. we'll bring you headlines from that. and the stock is trading down by about 2.5% in the afterhours. back over to you, kelly. >> thank you so much. we've got wynn and whole foods. facebook, guys and seeing a lot of red so far afterhours on the results, mike. >> yeah, all these stocks got a reprieve. i think with whole foods, you know, that's been a treacherous stock, growth purgatory. it was such a high-value growth stock for a while. >> i think the danger is in looking at all of these stocks as if they started from the same point. i mean you got to consider how much facebook has run compared to most other stocks out there. it's been running with the likes of netflix.

google had to run to catch up where facebook has been at this point. the fact it's been falling back to where it was a couple of weeks ago doesn't consider how much it run up over the past three months. this is afterhours low volume we haven't had the conference call yet. there's a lot still to hear about what this company sees coming down the pike. it's interesting to hear julia say that capital expenditures came in lower than analysts had expected. what will facebook say about that? does that mean they're actually planning to spend more in the current quarter because they didn't spend it before? or have their plans changed in some way? all of that is important. >> and capital's not the only way to spend money. there might be something else going on. >> they could be hiring like crazy. >> they spent a billion to a billion and a half. it's not been easing up on them. >> yeah. guy, listen the whole foods reaction here it's down 10% after hours. we know that one didn't start from nearly the position of strength that facebook did. so what does this tell us now

operationally about how whole foods is going to get its act together? >> yeah its heart operation. and you wonder now 21 times forward earnings what is the right multiple for whole foods whose growth seems to be slowing? with that said, in terms of stock price, 36, the levels we're trading at now, this was support all in the middle of last year, last summer, 2014, we spent three months or so right around this price. so if by some magic potion this thing opens tomorrow holds 35 1/2, 36 level on big volume. being north of 12 million shares, maybe you get an opportunity to buy this for trade. with that said seems to be with this report of declining business with a multiple still too high. >> all right. let's get to solar city's results here before we close out this earnings parade. josh lipton, what can you tell us? >> let's get you those numbers. analysts kelly, were looking

for loss of $1.57 on 90 million. looking through the release, kelly, saying it installed 189 megawatts of panels. that's a record and better than the guide. in q-1, it was 1.53. we'll look through the letter and get you more dedales as they come. a conference call kicking off at 5:00 p.m. eastern. back to you. >> thanks. guy, everyone looks at this one halo effect. but there's other stuff going on, as well and a bigger loss than expected. >> yeah but you know what the stock performance, price is giving you reasons to own this name. here's a declining crude price. finally, the names are decoupling from the fact when crude typically goes down, the stocks go down. not happening now. i know there's no correlation to every ceo in that space. we'll tell you there's not, except for the fact that the stocks trade that way. now you're seeing a de-coupling. i think the market's telling you that giving you a pass. i think the stock has more room

to the upside. i get the quarter was not great, but the stock price action is telling you that you maybe want to own the stock right here. >> all right. and by the way, guys solar city is the name so far of these four in the green afterhours, at least. just going back to facebook for a second. we'll get more on this one, john. you know we've heard from yelp. they were down significantly afterhours yesterday. chairman, we've heard from twitter, a disappointment. now facebook a little bit lighter. are people going to paint a narrative about social media more broadly? >> i don't think you can because facebook's in a category by itself. you didn't have that with facebook. they actually exceeded the growth hopes by a little bit. with yelp you have revenue projections for the current quarter coming in a bit light and spending more to retain talent. if you don't have that with facebook, people at facebook generally want to stay at facebook. they're sort of the lions on the prairie in silicon valley right now. i think if anything with facebook, it had run so far ahead of the others that there's

a little bit of a pullback here but we can't be sure that this narrative has anything to do with the others except that facebook and google are pulling ahead in advertising and online. the same way apple and samsung have been doing in smartphones. so i think investors need to keep that in mind that you can't just lump this in with other internet names. >> great points. we'll leave it there for now, everybody, stick around and catch more on "fast money" at 5:00. thank you, guy. >> bye, kel. >> we'll have the latest headlines on facebook earnings at 5:00 p.m. don't miss that. the shares of facebook lower after the earnings report. up next, we'll speak exclusively to david wehner. see what he has to tell us. you're watching cnbc first in business worldwide.

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what was it that drove facebook's revenue this quarter. was it video? >> julia, thanks for having me. look, the quarter was a great quarter, almost any way you look at it. we surpass $4 billion of revenue for the first time. revenue was up 39% year-over-year. the advertising business continues to grow very nicely as we're delivering targeted reach for our advertisers at unprecedented scale. so advertising was up 43% year-over-year. it would have been 55% if it hadn't been for the currency head winds. but i think the real story here is we have a great, great community growth underlying the strong financial performance. so our -- we have nearly 1.5 billion users on facebook. nearly half the world's online population. that's growing very nicely. we added 173 million people to facebook year-over-year. that's our strongest growth in nearly two years. and those people are coming back.

we've got 65% of our monthly users coming back every day. and that's just great engagement. so we're really happy about that. >> david kelly here. >> how much of this is instagram? and is any of it whatsapp? >> well the real story here is the core mobile business on facebook. that's what's driving the growth. mobile's been a phenomenal growth driver for us. we've got 844 million people using facebook daily on mobile. that's up 29% year-over-year. we didn't have a mobile business three years ago. and that's now 3/4 of our ads revenue and that's growing 74% year-over-year. so we think we've got the best mobile ad product out there. videos certainly making a contribution, and it's -- and it's making our best in class mobile ad product even better. so video's part of this story here for sure. >> what can you tell us in terms of the actual numbers from video, since it is a relatively new product.

and also, from instagram, which you have been rolling out ads on. are there any numbers to give us? >> so we're not breaking out video per se. it's making a real contribution on both engagement and revenue in the quarter. we've got, the auto play video product is -- has been great for engagement. seeing people engaged with billions of videos each day and that's growing. we know it's a great creative canvas for our advertisers. we see advertisers like accura using it to launch the new tlx model, getting great results there. we're excited about the video ad product. and it's making a contribution this quarter. instagram is an important product for us. we think it's a great revenue opportunity in the long run. but the focus there is really on user growth and they're doing a great job there. they have over 300 million users and that's grow inging.

it's -- >> in past quarters there was a lot of concern about growing expenses. in this quarter, your capital expenditures came in less than expected. what can you tell us in terms of your forecast for the rest of the year about expenses. >> we benefit from being in a great margin business with advertising. so we really think we're investing from a position of strength. but we've got a bunch of great investment opportunities going forward. so we are really, you know investing in the business both in the near the medium and long-term, and the near term we're focused on growing our community, growing our business in the medium term we're focused on our next generation of services like instagram, messenger and whatsapp. and artificial intelligence, virtual reality and our connectivity labs efforts. we're making a lot of investments and we're investing but we think we're -- we've got

a lot of great growth opportunities in front of us. >> what do you think is the reason why? >> i can't comment trading afterhours. i think the important story is we're executing well on the business, the community is growing, engagement is strong. from an engagement point of view, we have over 46 minutes a day of engagement across facebook, instagram and messenger. so we're seeing phenomenal engagement in terms of time spent with people who are on facebook. so we're really excited about that. and i think that's just a testament to the -- to the strong power of news feed and how engaging it is for the people who use it. >> certainly engagement is a very important measure of how popular the platform is and what it holds for advertisers. i'm just wondering what the trends are you're seeing, especially for the core facebook platform. because that's the most important in terms of advertising right now.

>> well, we're continuing to see great growth across a very diverse slate of advertisers. we've got -- we've got a diverse slate of advertisers. people engageing with all sorts of different formats. using video, they're using, they're using click ads where they're driving people to their websites. they're using mobile app install ads. we're seeing a diversity of advertisers and growth across all those verticals. >> there was a lot of hand wringing in a sense when you guys bought whatsapp a little while back. but some colleagues have started talking about using the app and discovering it. and they said, does it make money? how would it make money? how would you answer that question? >> well, the real focus for messenger is to continue to drive a great experience for the

people who use those products. and there they're doing really well. messenger is over 700 million users and growing. whatsapp is growing. and the focus is to deliver a great product that's fast, that's useful and that's fun. and we think we're really doing that with both messenger and whatsapp. we think there's a great opportunity. but the focus today is continuing to drive a great user experience. >> can you give us an update on when you expect to start monetizing that opportunity for messenger and whatsapp? >> well, we're already experimenting o inging on the messenger side with looking at things. that's going to take time. the focus really there is again, let's continue to make that a great experience for users. let's continue to drive that. and then let's build the business over time. we're going to be patient with that. we've seen great success with building the business around facebook. we hope to replicate that. we're focused today on driving

that user experience and also experimenting on the business front. >> you know, david, there are people already saying that 2016 may not just be kind of the uber candidacy when everybody's jockeying for president here talking about the gig economy and these things. but really a turning point in which platforms like yours, like facebook become the way in which we see a lot of this advertising. can you tell us whether you're seeing early indications that we'll be seeing a lot of political content in terms of advertising on your site over the next 18 months? >> in terms of advertising, we have a diverse business. one vertical isn't going to drive our business. so i think it's more of a question of where public discourse is happening. and facebook we think it's the place it's going to be happen. we're excited about the election from the point of view of the activity we're going to esee on facebook. i think that's what we're excited about. >> again here, i haven't seen the slides yet that you will

share along with your earnings call which starts in about half an hour but i'm wondering what trends we could expect to see in terms of those average revenue per user stats, especially with the u.s. versus the rest of the world. facebook has had a big gap when it comes to trying to make money from those non-u.s. users. are you making progress? >> well julia, you'll see from our results that we are facing currency head winds in those markets. so that's going to be the biggest story. you've got the euro being down nearly 20% year-over-year. so that's a big head wind in europe and that's going to be affecting arpu. and you have the diversity of the types of countries that are in the different regions in terms of their gdp. the mix of those is going to have an impact. but, you know, we're really excited about the results we're delivering across the globe. the strength we're seeing in the u.s. and canada. and the currency head winds are something we'll have to face. >> david, thanks so much for joining us. we know you have a call to get ready for. we'll let you go. david wehner, thank you.

it's been another wild afterhours earnings session. we'll recap the big numbers for you next. plus, microsoft has a lot riding on the release of windows 10. will it be a winner for one of the worst outperformers this year? that's coming up on the "closing bell." can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver? you total your brand new car. nobody's hurt,but there will still be pain.

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to build something smarter. ♪ ♪ some come here to build something stronger. others come to build something faster... something safer... something greener. something the whole world can share. people come to boeing to do many different things. but it's always about the very thing we do best. ♪ ♪ . welcome back. it's not just facebook out with the result after hours, kate rodgers with the other big movers. >> well, whole foods earnings a miss reporting 43 cents a share

versus the street's estimates of 45 cents a share. revenues also missed at $363 billion versus estimates of -- i'm sorry, $3.63 billion versus estimates of $3.69 billion. the company posting light fourth quarter eps guidance. and as you can see, the shares are tanking in the afterhour, down by nearly 10%. now life lock also posting a second quarter beat. the company did issue weak current quarter guidance. that reflects expected impact from a lawsuit from the ftc regarding deceptive advertising. and finally, a big second quarter beat for sneaker maker skechers. earnings came in at $1.55. now, revenues came in at $800 million for the quarter versus estimates of $736 million and shares are up big, more than 11%, nearly 12% in the afterhour, kelly. back over to you. >> skechers, holy cow. >> i know. >> look up what's going on over there. thank you very much. our kate rodgers for now.

time for a cnbc news update with sue herrera. >> and here's what's happening this hour. a long time philadelphia congressman has been indicted in a racketeering and bribery case. democrat chaka fattah and four others were charged with misappropriating money and using it to cover campaign loans and debts. he denies the charges. part of a plane wing discovered washed up on a remote island near madagascar. sparking speculation. the piece was found on the island in the indian ocean earlier this morning. boeing's chairman jim mcenerny says he's considering moving pieces of the company. given the debate in congress over the future of the export/import bank. he made the comment at a conference hosted in washington. and firefighters used a pair of ladders.

take a look at this to rescue 14 people trapped in an external elevator on san antonio's tower of the america's. the elevator tracks up the stem of the 750-foot tower. it stalled yesterday afternoon. nobody was injured. but that's like your worst nightmare. >> yeah. >> or close to it right, kelly? i would be terrified. >> oh yeah. >> it would be better to stay in the elevator or have to get out down the ladder. i don't know. it made my palms sweat. >> i always thought sky diving the hardest part would be the plane ride before you jump out into the air. >> i don't know. you wouldn't catch me doing that. you're braver than me. >> sky diving in this case. thank you very much for now. our sue. earnings conference calls set to begin in a few minutes. we'll listen in and bring you the breaking news as it happens. should you buy or sell facebook after the earnings report? shares are still down after hours. two top facebook watchers join us right after the break.

welcome back. let's start here with a reminder of where we finished after the results of the fed's latest meeting. dow up 121 points the nasdaq 22, the s&p 15. today, already another busy day for afterhours earnings. take a look here actually not much green on that screen.

facebook down 1.6%. off the lows. it was down about 5 initially after the results. whole foods, down about 11% as you can see there. wynn turned positive. solarcity, now down about 1%. let's pick up facebook here. moments ago spoke with david wehner about what drove the earnings beat. >> mobile's been a phenomenal growth driver. 844 million people using facebook daily on mobile. that's up 29% year-over-year. we didn't have a mobile business 3 years ago. and that's now 3/4 of our ads revenue and that's growing 74% year-over-year. so we think we've got the best mobile ad product out there. >> let's get reaction now from the chief investment officer. and the investment director who owns facebook on his own as well as through gam, she said. welcome to you both. and ivan let me start with you. shares down afterhours. why do you think?

>> i think it had a big run-up. it's had almost 20% run-up in the past five or six weeks ahead of the earnings. >> what stood out to you? >> revenue year-over-year 39%. social media is the platform of choice for advertisers to connect with customers and in my view, facebook is the best social media platform to do that with. >> are you satisfied with the results? >> yeah, i thought the numbers were excellent. i think there were two reasons they were down slightly afterhours. one is the run-up it had on the back of the numbers on amazon and google. on the second quarter, they were $321 million up the $88 million. if you back that effect out, the growth reaccelerated in mobile

advertising. it was a phenomenal number. >> that may explain why the shares came off the lows after hours. >> quite a bit. if you look at the run it had today in regular trading, it was up $1.70. right now, down $1.26 after hours. it could really go anywhere from here. my question, if i could just toss it to both of you. maybe to ivan first, since you're not here. i don't want to show you any less love. how do you measure facebook's value when you listen to a call as an investor at a time like this? are you looking at engagement primarily? are you looking at how they are growing their user base overall? are you looking at the bottom line as particularly important for a company like this considering they're saying they're going to invest more. >> first, you look at total users, close to $1.5 billion. then you look at the amount of time users are engaged. also growing year-over-year, 29%, mobile, he said 74%.

and mobile is the key driver because mobile will be the platform of choice where people engage social media. >> mark when we talk about where facebook goes from here. as we mentioned, a lot of value is built into this name. it's certainly not cheap. how much further upside do you see? >> i think the significant further upside as long as they can remain the dominant and most engaging platform. so, the first metric i look at on the quarterly numbers is daily average over monthly. and that went up by another point this quarter. that's excellent. then we can apply metcalfe's law, increases with the number of users. so the biggest network takes the biggest share. so as long as it remains the most engaged network, then it will take most of the social and mobile advertising dollars. and then the opportunity is still enormous. >> mark, how do you define facebook's network, though. it's not just core facebook

you've got instagram and whatsapp. they're not advertising the other two yet, but do you count all of that as being facebook's network? >> in a way, yes. because there is a facebook branding related issue. i think it's interesting that we all question why $19 billion was paid, but facebook has the three largest, social networks outside china. which is facebook facebook messenger and whatsapp. it's interesting, had the same number of users as twitter had in april '13 at $200 million. now whatsapp has $800 million. it was a great acquisition and those will become monetizable and will add further to the value. >> quick last question to you, how much further upside do you see for the shares? >> significant upside. >> over time, the stock price could double. >> so to the point, thank you guys so much. really appreciate it. shares of whole foods are getting crushed. up next we'll get more on the

company's earnings as we get set for their conference call. plus, can windows 10 help resurrect microsoft's sinking stock and reboot computer sales? that's also coming up on the "closing bell." this summer, challenge your preconceptions and experience a cadillac for yourself. ♪ take advantage of our summer offers. lease select cts models in stock the longest for around 399 per month.

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with at&t get up to $400 dollars in total savings on tools to manage your business. welcome back whole foods out with the earnings earlier the hour. and the stock down about 10% on the results. jane wells joins us with more detail. hi, jane. >> hi, kelly. well, has the high-priced organic trend faded? or are there so many competitors

now that can offer, well similar quality perhaps for less? these will be the questions facing management at the top of the hour while the chain was shy of expectations. earnings per share are 43 cents, two pennies shy. and get this they include a penny per share. an expense of $8 million. that is a first. but the big miss the comp store sales up only 1.3%. the street expected at least twice that. there's been a big drop in growth since an investigation revealed some customers in new york were being overcharged. whole foods predicted current quarter earnings of 34 to 35 cents. the street expected 38. and it's lowered full-year sales guidance look at how whole foods has compared compared to kroger. and that is the story. still, the company is excited about a new smaller, cheaper chain which will roll out next year. the first one, kelly, here in los angeles in silver lake, a

very hipster-y neighborhood. targeting the millennials who don't have really big paychecks. >> jane i was going to ask you an anecdotally, which market do you go to? >> i go to trader joe's, go to costco. you go everywhere. you don't go one place. >> but your whole foods shopping behavior, has it changed at all, jane? in the last couple of years? >> i go there not as much because i'm not quite as convinced, this is a whole other story that organic is -- as great as they say it is and worth it. and whether that label really means that much. >> i think you're not the only one, which is why the kroger numbers on the back of that are interesting, as well. thank you. jane wells in california. kate rodgers has those

highlights. >> that's right. we wanted to bring you a few headlines from steve wynn who said macau continues to be more of a question than a certainty for wynn. also adding that the construction and staffing is on schedule for the march 25th opening of the macau wynn palace over there. also adding that macau is a very sharp place. and the troubles in the macau region and their business there were also reflected in the earnings report. of course, a miss and on top and the bottom lines for the second quarter. they're gaming revenues in macau, $617 million, kelly, a 36% decrease from the second quarter last year. the stock not doing much in the afterhour. and we will continue to bring you more details as they come from that conference call. >> all right. appreciate it kate. thank you very much. microsoft shares up about 2%, meantime today. can windows 10 bring new life into the tech company? that's next. and be sure to tune into "closing bell" tomorrow. s.e.c. commissioner dan gallagher will join us in an exclusive. a lot of ground to cover with

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welcome back. it's finally here. the long-awaited windows 10. and it's free. at least for those with windows 7 and 8. but is it any good? lance ulinoff is editor at large

and chief correspondent at national and joins us with his review. how long have you been using this? >> weeks. and actually even before that. i joined the insider program as soon as i could and started downloading betas. and then probably about three weeks ago i switched over completely for what's called my production machine meaning the system i do all my work on. >> and are you productive? >> i am. i've been getting stuff done. you have to understand it's a step forward and step back. it's got the start menu. so that's a step back. step forward, it's got this new edge browser. microsoft edge browser. which i really worked very hard to stay within as much as possible. but the reality is there are some things it doesn't have. in particular extensions. and some people like me run certain extensions like last pass he. and if you're in a corporate environment that means you may not be able to log in to stuff. but it's not a big deal because you can still install chrome. it runs just fine on it. so that's what i did. we spend -- microsoft mentioned this to me and it's very true. we spend 70% of our time in the browsers when we're on the

computer. so that's kind of where you live. >> what's last pass by the way? >> last pass is where i store all my passwords. and basically corporations when you have an enterprise version store passwords you can't even see unless you're logged in. so it's a highly secure thing. also extensions not supported norton symantec some of the security stuff. but that's because windows 10 has windows defender and smart screen built in. which are kind of doing the work for you already. and by the way i don't know if i mentioned but windows 10 is not an operating system anymore. it's a service. and that -- you know it's still an operating system but what it really means is a change in strategy for how they deliver updates. it's going to roll. it's just going to keep changing. and theoretically getting better. >> it's like netflix. >> jon? >> it's like mac os. >> apple's been doing something similar for a while now. i think a big question for investors is is this going tone tice you now that you've been trying it on these different machines that are already out, to buy a new pc toward the end of the year when you've got

those cameras on the windows 10 pcs that are going to let you log in by your iris. are you going to buy a new pc because of this? >> well, i'm not going to buy a new pc because of this. >> why not? >> here's what it does mean. it breaks down the barrier. why were people holding back on buying windows 8 systems? because it was the fear of the unknown. the difference. where you had this kind of schizophrenic screen where it would jump back and forth between these environments. enterprises didn't like that buzz they knew they had to train people. you don't have that anymore. even in what's called continuum where you can switch back and forth in a convertible system, you still have the start button-u still have the list of apps. i think that is going to lower the barrier for people making the big buying decisions -- >> so which is the more powerful force, the upgrade that's going to keep people from having to buy or the familiarity and the new features that are coming that are going to entice people to want to buy? is this a net positive? is it going to start a new consumer upgrade cycle? >> there are too many other factors at play to say -- this

is not the microsoft that was operating in -- 95 in 2000 and 2005 or -- it's so different now with all the other forces at play-w bring your own technology to work and how people are using for example ipads in the office where they've got a keyboard attached. so it is different, and it can be difficult. but i think that people are excited by some of the sort of -- like surface pro 3 is a good example of something microsoft has done really well and i've noticed, i was talking to a bunch of people in a very creative industry a couple of weeks -- in an animation industry. three of the people there looked at the surface pro and said i've been interested in that, i've been thinking of trying that out. now they get an operating system they're really going to want to run on it because i think it's going to be smart and familiar but still powerful. it still does a whole lot of stuff. >> i was going to say bottom line, though given all the forces you described, what's going to define success for microsoft with this new -- with this upgrade? >> there's potentially 1 billion people, right? who could download this and potentially upgrade. and getting a big percentage of

those people to follow them on the path. and microsoft wants you to live in a windows ecosystem. a windows 10 ecosystem that is across desktops, tablets, and phones. and they kind of try and give you the platform. one drive, which last time i was on here we talked about cloud computing. they have one drive. fantastic platform that by the way is better than what apple does. it's smarter and easier to use. and i think that is the kind of thing that's going to entice people to follow them on the path. >> we'll see if any more people are a pc or become a pc once again after windows 10. thank you so much lance. appreciate it. lance ulanoff from mashable. the countdown to the conference calls is on. we're going to bring you key factors to listen for when we come right back. can it make a dentist appointment

when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are really asking is can your business deliver?

welcome back. we're just minutes away now from the facebook conference call. as we digest earnings from facebook and several others after the bell today. shares were down about 5% when the company reported about an hour ago. down a little less than 2%. what are you going to be listening for? >> a couple of things. looking through the earnings slides they put out, expenses across the board appear to be pretty much in line in control. so i think color that they give about something like instagram and overall ad load how much

flexibility they have, to charge more or to place more ads could be a big deal for them. >> mike. >> they were talking about the 46 minutes a day that people stay on the platform. that's obviously going up. i would be really interested in big picture to know where that can go because it's obviously detracting from tv which is about three hours a day. really it would be bullish if you can say 46 minutes can probably go pretty much higher from there. >> and i forget which guest we had who said he thinks this is the way to most effectively, if you're any advertiser, get that video ad across. it's now facebook. do you think that's true jon? >> it's very strong. after these youtube results it's hard for me for my position to say which is going to be more effective for somebody, but i think it is interesting that facebook is in the conversation with youtube despite the fact that they don't have a separate video product yet. if they say anything about that or the road map to that that could be big as well. >> facebook's valuation implies it's going to become tv. it's still pretty expensive. >> thank you so much. a busy hour. really appreciate it. mike santoli, jon fortt. fms coming up in a few minutes.

melissa lee, what questions are you going to be looking for? >> whatever they say about instagram we're going to want color on that. there are so many things on the facebook call which gets under way in ten minutes. but also of course whole foods, wynn, solar city you name. >> a lot of disappointment after hours. leave it to you guys to sift through all of it. >> "fast money" starts right now live from the nasdaq marketsite kroefr looking new york city's times square i'm melissa lee. it is an insane after-hours session once again tonight. our cnbc team coverage will bring you all the headlines as they break throughout the hour. julia boorstin is monitoring the facebook call. that stock was down 5%. it has rebounded since the call is just starting. jane wells is on the whole foods call. kate rogers covering solar city. and of course back in action tonight but this time on facebook mr. red phone himself, top analyst bob peck of suntrust. here to weigh in on all the headlines from the facebook call as they break. we start off with one of the most widely held stocks in america. that would be fb. julia boorstin's live at the new york stock exc