on sirius channel 112 because there are 2 million cars stuck out there. >> good luck to them. >> today was a great day to remember to bring the jet pack. look forward to "fast money."".." "closing bell" starts right now. hi everybody. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. i'm bill griffeth. if you are listening to us on sirius satellite radio on the new jersey turnpike condolences. settle back. we have a couple of great hours coming up. zhou component apple getting crushed again today. melissa lee was pointing out. we're going to look at both sides of whether it is time to cash out or buy more of apple stock at these levels. we have a bull and a bear on apple coming up momentarily. meanwhile, the dow stock stealing the spotlight for good reasons is disney. it's had the biggest year to date gain by any dow component.

it's up another half a percent. we'll get disney's earnings after the bell today. apple is thought of as sort of the lead dog. it's the largest company out there. i think disney is the company to watch these days. >> what a performance it has turned in. >> meanwhile, aetna out with earnings this morning. it's getting a big boost from medicare and medicaid these days. we have a first on cnbc interview with ceo mark bert bertolini. breathtaking consolidation in that industry. >> really looking forward to that. also rock star and actor rick springfield is joining us at the new york stock exchange. we'll talk about his latest film with meryl streep and what he thinks about taylor swift's harsh words for spotify. >> ring springfield has sold 25 million albums in his career. that's a lot of potatoes. i'm sure he has some comments about streaming these days and whether or not that is a way for a musician to want to get paid

whether the compensation is enough. taylor swift says it's not. >> as soon as you said he had sold 25 million records i thought to myself how are we going to describe to his popular artists in time. is album sales the new figure? they were streamed 10 billion times on spotify. >> they have to tour which he still does. while they were making "ricky and the flash" which opens this friday, he was still touring. >> he's 65 years old. >> yes, he is. that's not that old. >> it is incredible. >> it is. let's move on with apple. the stock down 11% since its february record close. >> david trainor recently sold his position in apple and sees more down side. he joins us alongside oliver porshe. welcome to you both. oliver, let me start with you. why are you convinced that apple is a good buy here given the price action just based on that action alone are you worried sfwh. >> in the short term it can go down further, no question about it. kelly, i look at it this way.

you have a stock that's very a tracktivelily valued. tremendous cash forward. they've got a rising dividend share buy backs and they've got some interesting product launch sz coming up. you've got a high margin apple iphone being released in september because it's not a big rebuild in terms of technology. then of course there's the speculation that they're going to spin off or somehow do something with itunes which could be huge. all in all i think apple is a great holding for somebody looking for growth in their portfolio on a safe basis. >> all good points oliver. why is the stock going down? >> i think there's a few issues with the stock in the very short term. i think as is typically the case let's remember apple is up some 75% in the last two years. it's not exactly something to cry over but you've had some outsized expectations. so it's the reality catching up with the expectations. it's going to come down a little bit. to me, this is the point where you want to buy apple but you want to be a long-term holder of

the stock. this is not a short term play. if you're in it short term it's risky. >> david when and why did you sell your shares of apple? >> we think it's at a technical tipping point. it's sort of kind of reached its technical max. the fundamental story that i've been talking about over the years really hasn't changed and that is that there's a lack of innovation coming out of apple. they have a very loyal customer base because of the innovation in the past but the longer and longer in between sort of innovations the less loyal that customer base can be expected to be. you have returns on capitol as high as apple does it means the bigger you are, the harder you fall. they're at 180%. when that customer base is no longer as loyal, this he could see a major drop in profitability. i think that could have significant repercussions on the stock. >> you've had a love/hate relationship with the stock, david. you didn't like it until last october. you got back in. now you're getting back out. you got in because of the

coolness factor. you had to acknowledge that even though you're not impressed with the products you have to acknowledge there is a coolness factor that brings people back very ravid fan base that apple has these days. >> that's right, bill. the same is true with the investors. if you say negative things about apple you might get a death threat or two. the apple story has been more about marketing than it has been about product over the last couple of years. that marketing success is basically built on the awesome innovations that apple created over the years. we haven't seen those in a while. so to expect the loyalty to be maintained despite the lack of innovation i think may be a little naive. look, we know the customer attitudes can be pretty fickle. we saw how fast facebook put my space out of business. >> right. >> you're one great innovation from putting something to bed and be so you've got to be careful. >> oliver if you put your carl icahn hat on what letter do you write tim cook here? what do you want to see him, if anything, do? >> i this i what david said is

very important and very accurate. apple's product used to be launching product on time. they fixed that. and innovation did suffer a little bit especially on the software side. i think they're in the precipice of getting back on track and that's why i'm much more optimistic than he is. certainly on a long-term basis if they don't continue to innovate, that will be an issue. that's why you want to be active and not just buy it and forget it. >> gentleman, thank you both. >> thank you. >> hot topic. we'll keep an eye on apple. >> thank you both. appreciate it. >> yes, ma'am. >> we have a market that's down about 35 points. >> which we're going to talk about right now. moving lower on comments from atlanta fed president dennis lockhart says he's ready to support a september rate hike so let's talk about that in our "closing bell" exchange. ben willis who's at post 9 i think. we have ian weiner and our own rick santelli. rick, what was the market response when that came out?

>> it definitely firmed rates up, but i think the real story is if there's anything about the fed that truly impacts markets, there's one fast and easy place to look first, the dollar index. so look at the dollar index. see the way it firmed up? and see the way ten-year notes around 120 eastern when that came out and of course it's continued a bit and it was a fertile environment for that selling to push up field to tens considering that yesterday we closed a yield that was below where it settled last year and the lowest yield close that we've had since may 29th. now whether they actually do it or not, meaning tighten, i can't tell you if mr. lockhart really has his thumb on the pulse of what janet yellen and company will do, but i can tell you in front of adp tomorrow, jobs report on friday the market's a little itchy. there aren't that many big data points between now and the meeting so i would have to say, yes, in the market response it paid attention to mr. lockhart.

>> ian, is that because he's seen as sort of a middle voice on the fed? he's not one of the more hawkish members who you'd expect to hear this from. perhaps it does reflect where they want to go? >> well i mean i definitely think it's a change for him, but in general it just doesn't seem likely they're going to raise rates this year at least to me. let's assume they do. i think what you're seeing in the dollar is clearly a negative for all commodities and all the early cyclicals. it used to be the leadership in the marketplace. it's clearly an issue for people who are betting on stock buy backs, dividends and m and a and it's also an issue for i guess fang, which is the acronym of the week for those companies as well because it takes out some of the risk profile for individual investors. any change that's perceived as far as rates going up is going to be a head wind for the market. >> ben all of this happens right now as the market technically seems kind of vulnerable here. when you've got the leadership kind of falling by the way side like an apple, you know we've

highlighted how short interest is, the highest it's been since late 2012. we could go on for other things. what do you think is going on? >> what we're seeing at princeton securities is a rotation leaving some of the delta or the high volatility on the table, getting out of the names like an apple because if apple suffers from its own success, if you will what have you done for me lately or the old axiom on wall street buy on the rumor, deliver on the news we've gotten reads on the product sales and the stock is coming under pressure. 11% not a big deal as i alluded to earlier. what we're seeing is some of a rotation out of the larger s&p names, the safe haven, if you will, from that side of the equation and continue to look for value in the brusle 2000 and the s&p 500. we've still considered seeing buying interest in the restaurants today. i think that's going to continue. so if you believe that the fed is behind the curve, they should have normalized not tightened

but normalized. i think they will normalize this year. with that in play you have to defend against a stronger dollar and the rising interest rates which puts you back in american centered companies not in the global equity. >> rick, before we go i had a friend suggest to me today that the drop in oil prices wasn't just good news for the u.s. economy long term but also may reflect the fact that a lot of other sources of energy are becoming more economical than they were five or ten years ago. is this it? are we going to look back on triple digit oil and think, wow, what an amazing but fleeting period this all was? >> oh, absolutely. i think 115 and higher was the anomaly. i think supply and demand technology yankee know how may have a dark side from the investing standpoint but on the other side of the street it's going to be lower energy prices for a while and not only in your tank, think auto sales. there's a lot of peripheral and cottage industries that will benefit, but in the end there's also a demand issue and it's hard to see through the supply

right now to assess how bad that demand issue is in the price drop of energy. >> that's for sure. guys, thank you all. see you soon. appreciate your comments today. we have a news alert now from the world of sports. dominic chu stepping in with that. what do you have dom? >> bill kelly, a very interesting development here just breaking the last few moments or so. basically we have a tie up a partnership, a deal inked between the national hockey league and major league baseball's advanced media unit or mlbam as it's known in the business. what's going to happen right now is that the two will partner on a joint deal where the major league baseball advanced media group will get rights to stream nhl games and also have rights over the content for the national hockey league. so basically what's happening is the advanced media arm of baseball is now going to run a lot of the media properties for the national hockey league. the financial terms weren't

disclosed. there have been some numbers thrown around there, but also reports that mlb advanced media's tech unit will give up a stake to the nhl in return for this deal. so again, lots of details coming out right now about this but an interesting tie up between two different sports leagues to run each other's or be a part of each other's digital streaming and otherwise media-related properties guys. back over to you. >> dom, this certainly is. thank you very much. be sure to stick around because later in the 4:00 hour we're going to have both commissioners of the mlb and the nhl here to talk about this deal and an exclusive interview, bill, and reflect on what the technology needs on these two leagues. >> that story just broke. how did you possibly know that? >> magic of television. >> a little more than 45 minutes to go in the session. the dow is down 41 points. it was down 93 points on the low. it's come off those levels. the s&p giving up 3 and the nasdaq 5. when we come back aetna's

ceo mark bertolini will speak with us. posting better than expected earnings raising its profit forecast and we'll talk about their $37 billion proposed acquisition of humana coming up. also ahead, '80s rock star turned actor rick springfield here at the new york stock exchange. there he is live on the floor. you may have seen him in this season's "true detective." >> super creepy. >> now he's in a movie alongside none other than meryl streep. we'll also get his take on taylor swift calling spotify a, quote, startup with no cash flow. rick springfield in a little while. stay with us. ♪ ♪ a new season brings a new look. a chance to try something different. this summer, challenge your preconceptions and experience a cadillac for yourself. ♪

the 2015 cadillac srx. lease this from around $339 per month, or purchase with 0% apr financing. i'm here at 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.

my name is chris hughes and i am a certified arborist for pg&e. i oversee the patrolling of trees near power lines and roots near pipes and underground infrastructure. at pg&e wherever we work we work hard to protect the environment. getting the job done safely so we can keep the lights on for everybody. because i live here i have a deeper connection to the community. and i want to see the community grow and thrive. every year we work with cities and schools to plant trees in our communities. the environment is there for my kids and future generations. together, we're building a better california. in the s&p 500 index today. let's look at what's moving wall street now individually based. we've got ireland based shire

making a $30 billion bid for baxalta. they're a leading maker of hematology and immunology drugs. that was spun off from back street international last month. this would strengthen shire's focus on rare diseases. allstate is tumbling after missing street estimates on the top and bottom lines. rbc capital and goldman sachs cutting their price targets and downgrading allstate's stocks. stock is trading lower today. kelly. health insurance aetna beating earnings expectations today and raising its guidance for the year. this amid a flurry of consolidation and that includes aetna's attempt to acquire humana. >> joining us is mark bertolini . first of all, you had a great quarter. why do you need to buy humana. you've raised your guidance. things are good. >> when things are good we have

to be planning for the future bill. as we look down the road, having more opportunity to serve the government population and to get more markets covered is important for us. >> mark i wonder. you know i look at the results. this has a lot to do with medicare and medicaid. not to be unfair about it but are you guys kind of like the fan fannie and freddie of the next cycle? >> the combined companies would only be 8% of the medicare marketplace, so not a lot. secondly, there are 140 different competitors in the medicare advantage marketplace. as we look at market by market there's never less than five competitors where we both compete today. >> that said the journal had a nice profile of you and your colleague at anthem montpelier have been putting together megadeals in this space making the point that when you used to meet you called yourself the group of five talking about industry trends. in some ways you are becoming the group of three.

why is the economics of scale here -- why is it important to see this consolidation? who are you looking to take on? is this a sign of the industry maturing? why three and not five? >> i think, kelly, what you have to understand is the basis of competition is at the local market and at the local market blue cross/blue shield fans have 30 40 50% market share. so for us to compete on a national basis we have to be able to compete at a local market level. we'll never have that kind of share at any one local market across all the product lines and so we need to be able to build the capability to have enough share at the local market to partner with providers because in the end analysis it's about helping them keep costs down keep health insurance premiums down. >> and i went back and looked back just after the supreme court ruled and gave the thumbs up to the aca and all of this takeover talk started, i went back and looked in notes, and

there was a note that was guessing that anthem was going to take over humana mainly because humana has a large medicare population where anthem does not. anthem performs well in the exchange market humana does not. it seemed like a good fit. did you talk to cigna? why humana? >> we have the same overlap, quite frankly. the only overlap we have with human in is in a few markets on medicare. we do very well on exchanges, they're having some troubles there. we have a large commercial business, they have very little commercial business. they carry the lion's share of medicare. so the overlap for us is very strong from the standpoint of complimentary products and services across the full line of business and we think our question nation is as powerful than the anthem one. >> and the fact that cigna and anthem are trying to get together at the same time does that make it more difficult, necessarily, to get this past the regulators for both of you to be trying to consolidate the whole industry at once?

>> i think the issue is going to be more at the local market level, how do we do the analysis. so by having another combination -- actually, there are two other combinations if you look at senteen and health net. you have to do the local market analysis across all those competitors. that will make the analysis more complicated and time consuming. >> mark, it does seem like medicare and medicaid, their growth is going to continue. when the government is making these payments it's hard to see any reason why there would be a ton of pricing or competitive pressure across this space. you know what can you tell us about the next two to three years? what do you think premium growth looks like? do you expect for medicare advantage to start seeing significant increases after a period of many years in which we've seen big declines? >> well i think one statistic that i'll share with you the government just recently put out a report that the health care costs rose to 3.1 trillion last year across the united states. that's an increase of 10.5% over the prior year at 2.8 trillion.

so the underlying costs of health care drive premiums. and what we have to do is we have to invest in the underlying effectiveness of the health care delivery system if we're going to have any impact on premiums. premiums follow costs and so we have to build that model and that model is a different reimbursement model where we pay on performance for outcomes versus paying on per unit of service. >> a final question, mark. we had the head of mount sinai hospital not long ago on and he said the reason why there's been so much consolidation for the hospitals is that they have to match the consolidation and scale of the big insurers. do you see almost this arms race developing between hospitals and insurers these days? >> no. i think the real issue, kelly, is that we have over capacity across a number of areas in the health care delivery system and the only way to get at that capacity is to get it under one governance model so that we can get it right sized so that that capacity meets the need of the population in that community

versus building capacity so that you can drive more revenue. >> understood. thank you so much, mark for joining us. >> thanks mark. >> thanks bill. thanks kelly. >> aetna ceo mark bert towlyolinibertolini. if these go through we'll have a major impact on people. 35 minutes to go here into the close. the dow is down about 50 points at the moment. coming up, disney will be posting earnings in less than an hour. we will preview the entertainment giant's numbers and bring them to you when they hit the table. very high expectations for this company's reports. they have been hitting them out of the company recent bely and the stock is sitting at all time highs as a result. first we're going to talk to '80s rock star and actor rick springfield and his take on taylor swift's recent swipe at spotify. he's making his way to the set. stay with us. ♪ ♪

when the moment's spontaneous, why pause to take a pill? or stop to find a bathroom? cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. why should over two hundred years of citi history matter to you? well, because it tells us something powerful about progress: that whether times are good or bad, innovators with great ideas will continue to drive the world forward. as log as they have someone to believe in them.

for more than two centuries we've helped progress makers turn their ideas into reality. and the next great idea could be yours. hi my name is tom. i'm raph. my name is anne. i'm one of the real live attorneys you can talk to through legalzoom. don't let unanswered legal questions hold you up, because we're here we're here and we've got your back. legalzoom. legal help is here.

welcome back. here's a look at netflix up another 8% today to new all time highs after guggenheim initiated a buy rating at $169 price target. shares currently under 122. the analysts expect netflix to be a global leader over the next decade. well they've got a pretty good head start. >> yes they do.

from music to movies. our next star has gone from wanting jesse's girl to rocking out with meryl streep and ricky and the flash. watch this. ♪ day after day i'm more confused ♪ >> that movie comes out friday by the way. he's also graced the little screen in a role you might not have recognized him in. i didn't. >> oh, no we're showing it. >> he's in the second season of hbo's "true detective." i've got to ask him about the beating scene. >> the cringe worthy experience. rick springfield is gearing up to ring the closing bell here. first he's joining us in a cnbc exclusive right at post 9. >> you show up in the most interesting places. >> thank you. >> is that by design? >> yes. my whole life has been totally scripted. >> yes. you knew exactly where we were going, from "general hospital". >> from the word go. no it's just been a crap shoot basically. >> how did you get involved with this movie? >> they were looking for

jonathan demmy, the amazing director who directed the film wanted an actor who could play guitar because he wanted all the music live. everything you see in the movie is live. no overdubs no lip syncing. i auditioned for it then they did a reading with meryl and liked the chemistry and, you know, the thing i like most about it is our chemistry because we really got along real well, liked each other. she's an amazing actor. >> and she can sing. >> and she can sing and she can play guitar. >> she can now, right? >> pretty astonishing. >> little practice there. "true detective," i'm a couple up soeds behind. i don't know what's going on. how did you fall into that character? it's a bizarre character? >> it's 180 degrees from greg that i play in "ricky and the flash." so it is a great role to take. i've gotten so many e-mails from my friends saying dude you creeped me out so much.

it's a transformation and the crypt is awesome. and it starts with the writing, honestly. it's a great show. so out there. >> you know your hit song "jesse's girl" from the '80s is one that lives on and on and on. >> are you singing it in your head? >> "you speak to the sky". >> come on. i'm happy about that. >> bill knows the quality. how annoying is it actually or is it annoying at all, to have a hit that's that powerful and that comes, i'm sure in your daily life again and again and again and again? >> well i'm very proud to have written the song. i'm very proud that it's taken some kind of place. joe walsh had a great line before he started playing "rocky mountain way" for the 100,000th time. he said if i knew i was going to be playing this song for the rest of my life i would have written a different song. i'm glad i wrote the song. very proud of it. >> where do you come down on the music streaming battle right

now? taylor swift has drawn a line in the sand. she pulled herself out of the spotify. she said they're a small start upwith no cash flow. apple caved. now she's going with them. what about you? i mean do you view it as just another way to get paid or would you -- is there a better way for musicians like yourself to -- >> it's really cut into -- you know i get things from google that are like this thick, play sheets and a check for like five bucks. i'm going, oh, my god, seriously. it's very unfair because it's like you know saying well you're a plumber, you charge 70 bucks an hour i'll give you 3 cents an hour. that's just the going rate. >> what are you going to do? >> pandora's box. it's open. it's like you can't say -- you can't drink anymore, okay? prohibition didn't work. you can't stuff this thing back in the box but you can -- there's got to be a more fairer way to do it because performers we don't -- never get into it

for money. no artist i know got into it to make money, but to not allow them to be paid for their work i think is very unfair. you know taylor swift has the power right now to make some kind of move and it's -- you know, god bless her for that. >> just a question might appeal to a lot of our viewers. what's the biggest money mistake you've ever made? anything jump to mind? >> you want to use a name? >> if you're willing to use it. we know a good lawyer. >> yeah. >> if not that is there anything yet in your career that you kind of want to do and you haven't yet done? is there something still out there for you? >> i'd like to really make a killing in the stock market. can you help me? >> what do you think of this place, huh? >> i love it. i have some stocks and i have a guy that -- andy zicklin, hello, he's probably watching this. >> do you pick the stocks or does he? >> no, he does. i see stuff and i read a lot. i read constantly about it. i've allowed myself to you know, learn a little bit so i'm not a complete idiot but i do

let others kind of guide me. >> anyone in particular. >> well, andy zickler. his dad was with me and then when he retired andy kind of took over. he's a good honest person which is my first -- my first go-to person is an honest person. >> anybody that's had the kind of career you've had is not an idiot. you know what you're doing. great to see you. thanks for joining us. "rick and the flash" and rick will be ringing the closing bell at the new york stock exchange. >> thank you so much for being here. time now for cnbc update with sue herera. >> bill and kelly, here's what's happening at this hour. authorities are searching for stu suspects that fired shots in hen nisberg, mississippi. no injuries reported. police are looking for two white males that fired from a two-door red ford ranger with broken arrow written across the top. senate majority leader mitch

mcconnell said that the senate will consider a resolution of disapproval on the iran nuclear agreement. earlier ed royce introduced legislation to disapprove of the deal. the alleged leader of a jewish extremist group has been arrested and is being interrogated with the arson attack in the west bank which killed a palestinian toddler. he stood there smiling for media cameras in an israeli court. new hampshire's fire marshall says it's not clear why a circus operator proceeded with a show minutes after the national weather service put out a severe storm warning. a father and a daughter were killed. 32 were injured when winds of 60 miles per hour collapsed the tent. and that is your cnbc news update this hour. back to you guys. they're expecting more bad weather as the evening goes on today, bill and kelly. >> it's that time of year. thank you, sue. >> it is. >> see you later. heading to the close, we've

got about 30 minutes left. we're in that critical last half hour. the top trader at the new york stock exchange tells us what he's focusing on in the final most important half hour of the trading session. we'll be right back. everyone loves the picture i posted of you. at&t reminds you it can wait. hello. i am technology that is changing investing forever. i am a fully automated investment advisory service. i can help you choose the right portfolio. monitor it. and even rebalance it. i've been called innovative. revolutionary. and just plain smart. i'd blush at the compliment if i could. but i can't.

so. i won't. say hello at intelligent.schwab.com when i started at the shelter, i noticed benny right away. i just had to adopt him. he's older so he needs my help all day. when my back pain flared up we both felt it i took tylenol at first but i had to take 6 pills to get through the day. then my friend said "try aleve". just two pills, all day. and now, i'm back for my best bud! aleve. all day strong and try aleve pm now with an easy open cap.

we are smack in the middle of the trading day. i know he's not ring springfield, but steve grasso. >> i wish i had jesse's girl. >> didn't we all back in the day. >> that's right. >> a lot of you guys are scratching your head over apple wondering what's going on and what's to come right? >> what have we heard recently? there's a handful of stocks that are keeping this around all time highs. apple, google facebook gilead facebook, if you start to get the sell side in any one of those names, what does it spell for the overall marketplace? if you're really putting your future in those names you want to see all of them be solid. >> what about a stock like disney?

>> year to date up 29%. how many times can it do this? moving averages never come into play with disney until it's too late. this is one if you have some profits in it i don't know if you should take them because it's been such an outperformer for so long. >> so far. >> if the market caves, this one's not going to be immune to it. >> very quickly. you're going to watch apple. are there levels you're watching on the indices. >> in the s&p cash you want to go below the 50 at this point. you want to look at the 20/70 mark in the s&p cash. currently 2094. >> the data dependent federal reserve could be inching closer to the curve as a result of the, you guessed it data. data and how it's changing the

outlook. >> fed president dennis lockhart saying he's ready to hike. he said there's a high bar for not acting in september and he thinks the economy is strong enough for a rate hike. two-year note the yield jumping on the comment hitting year 73. actually, since i last wrote those words jumping above 73 near 74 as the bond market reached those comments from the sen tricks raising the odds of a rate hike in september. the dollar also strengthened. the data supporting lockhart's comments. here's the cnbc rapid update. we take the average tracking comments. last week we reported q2 gdp from the government. we've had subsequent revisions. construction spending factory orders. now we're up to 2.9. the third quarter we got the first piece of data auto sales running long. also 2.9 here. with a range of 1.9 to 3.0%.

these are very early days for the third quarter. just the strong auto numbers in. some economists see them. take a look at this chart. its worse moment reported negative 07. 2.6. now at 2.9. the cnbc rapid update first read coming in at 2.9%. and then here's the fed where they are on their outlook there. they're at 1.9% for the whole year. we don't have to do much to get above that fed forecast and meet their forecasts. still much data to come. friday's jobs report along with the august jobs report we'll get the first week of september could be key as will several inflation reports between now and september. 16th to 17th meeting. kelly, if the data hold up it should be enough to prompt the fed to act perhaps in september. >> i was going to push you, steve, if you didn't say. we had a question mark there if

the rate hike's on track. like dennis lockhart was saying it's still going to happen? >> jobs coming in high wage movement. you don't want to see inflation declining. we had a little bit of a bumpup there. we'll see what happens with the pce indicators which are the fed's preferred inflation indicators. all of this could derail. you say if it comes in the way the fed forecasts, is it enough? they'll tell you we have another piece of this information. >> a lot of data. >> thank you. >> it's left in the position. >> the stock with apple right

now. >> the former new york stock exchange boss duncan niederhaur. he knew the score on the exchange. he's back on the floor. he's going to bat for fantex. we'll talk to him about his new job, his old job and all markets next. re starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours.

♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet?

welcome back. fantex allows fans to buy and sell stocks tied to a player's earnings. it introduced an ipo for jack muhort and plans to bring tennessee titans kendall wright to the market. >> players aren't the only area that fantex has expanded. former new york stock exchange ceo duncan niederhauer will be joining the board. he helped us create post 9. along with fantex ceo buck french. >> i think there was more buzz on the floor than rick springfield. >> i've been back once or twice. it's nice to be back. >> >> why fantex?

>> lotteries. first of all, it always starts with a great idea and great team of people. i believe in the team and the team that buck's built is a great team but i also love the idea. it's not often you can be involved in the create of a new asset class and here we are in a world where basically everything's correlated. all we read about is everything's correlated. this is a truly uncorrelated asset class, right? as long as the salary caps of professional sports go up, you're buying a piece of an athlete whose future is pointed upwards because the tide is pointing upwards. >> all the same buck there's adverse selection for a lot of the players you have. the guys who are really lucrative sign the big deals and don't have to worry about this. kind of you get the others. what can you tell us about the kind of people who are coming to your platform and the kinds of people who are investing in them? >> we first and foremost character is the number one

attribute we look for in any of the guys we work with. jack muhort great young man. finished his first year in the league. going into the second year in the nfl. we look for guys who have great up side potential in their playing career and also high caliber individuals. >> for those who don't know how fantex works, you raise money through an ipo, literally it's an ipo the way you would a stock on each individual athlete. you give them a fee, an up front fee from the money that's raised for that ipo and in return they give you 10% of their earnings. i get that but it's 10% of their earnings in perpetuity beyond their playing career. why go so far? >> we do a quantitative analysis to forecast their earning potential. take jack. we forecasted about $58.8 million on a base case which we bought at a 53% discount 26 million. present value. we acquired a 10% interest for

2.6 million so if he realizes that base case or greater, there's a great return profile inherent in that cash flow stream. and ultimately we believe that over the long term people will build out a basket of these assets because of the noncorrelated attributes associated with the cash flow. >> because if you think about it, what buck's really describing is it's a private equity like profile. you get annual dividends. the tail of every athlete's career is a free option. because of the lack of correlation, it's a low volatility return profile also. so like anything new, there's only a handful of these guys that have done it. i think the proof is going to be in the pudding. once they get to kelly's question, once you get to a basket of athletes across different sports at different points in their careers, then i think people will start to think of it more as an asset class, right? >> what happens when they blow out a knee or finger? >> the more you get diversified. in some leagues they're

guaranteed whether a pitcher throws out his arm or not. you have to have more athletes for more diversification. >> the contract we sign is representing the future cash flow stream. adrian peterson blew out his acl. ten years ago it was a career ending injury. the year after he recovered from it he almost broke the title. >> there's risk on both sides. the risk of wrecking a relationship here, i'm not going to go too far back in your past. we had your predecessor on yesterday. we asked him if the number of trading platforms has fractionion allized the platform too much? what do you think? >> i thought it had a long time ago. i think competition is really really healthy. i think unfettered, unmitigated competition where you have all different kinds ofly quit at this pools and regulatory

regimes, i think it's not good policy. i'm happy to say that's no longer -- no one cares what i think about that except maybe you. >> just before you go people should know as well you're not investing here in athletic exchanges. there's some bitcoin, block chain stuff as well. what's in the duncan portfolio of the future at this point? >> the two or three things i'm trying to stay involved with are fantex for all the reasons we talked about. less bitcoin but more block chain. the block chain is a chance to digitize the infrastructure underlying all assets that's long overdue. then i'm really focused on some alternative lending platforms because i do believe properly regulated a lot of these platforms, whether it's peer to peer or main street lending, small business lending, that is here to stay given the regulatory regime the banks are going to operate under. i've been focused on those three

areas for the most part. >> so far. >> so far. thanks for having us on. >> thank you guys so much. >> appreciate it. >> thanks. >> duncan and buck. we will take a break and come back. ten minutes left in the trading session with the dow down 60 points right now. then we're going to talk about "ant man." disney's tale of a super hero. we'll preview disney's after the bell earnings with julia bores steen next. you're watching cnbc, first in business worldwide. bores steen next. you're watching cnbc, first in business worldwide. obores steen next. you're watching cnbc, first in business worldwide. orbores steen next. you're watching cnbc, first in business worldwide. sbores steen next. you're watching cnbc, first in business worldwide. tbores steen next. you're watching cnbc, first in business worldwide. ebores steen next. you're watching cnbc, first in business worldwide. ibores steen next. you're watching cnbc, first in business worldwide. nbores steen next. you're watching cnbc, first in ores steen next.es steen next.s steeteen next next. a new season brings a new look. a chance to try something different. this summer, challenge your preconceptions and experience a cadillac for yourself.

♪ the 2015 cadillac srx. lease this from around $339 per month, or purchase with 0% apr financing. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. those who have served our nation. have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life.

hi everybody. i'm sue herera with breaking news on baxalta. they are confirming that it has publicly received a highly conditional unsolicited proposal from shire for $30 billion, but we should note that the board also says that this is the same proposal that they received previously and rejected privately back on july 10th. baxalta's reaffirming its unanimous conclusion that shire's proposal undervalues the company significantly and a merger would be severely disruptive. it says it is not prepared to engage with shire. the merger presents a, quote,

significant and real risk to value for holders. at that point the halt was $38.12. we will get you a quote on that as soon as we can see on the board. so baxalta unconditionally rejecting shire's bid for it at $30 billion. bill and kelly, back to you. >> yeah, looks like it's trading lower, $37.90 and change. it's strange. the traders look like they're waiting for something to happen. >> absolutely. >> rather than it trading. it is trading right now, baxalta. meantime disney shares at an all time high. the company's earnings report comes up after the bell. >> julia borsen joins us with a preview of what to expect. >> hi. they're going to continue to continue to expand all disney's platforms. they'll grow revenue 6% to $13.23 billion while earnings are expected to grow 11% to

$1.42. the company's head winds include tough comparisons to a strong year ago quarter through espn in particular plus foreign exchange rates which should impact the studio as well as the theme parks. but the studio's expected to benefit from the hit "avengers, age of altron" and the theme parks are expected to see steady growth in attendance and to benefit from higher tickets prices. the earnings call we'll be listing for updates on the shanghai disney launch and of course "star wars." bill, over to you. >> julia, thank you very much. looking for that in a few minutes. we'll come back. running a little bit later but we'll have the closing countdown in just a moment. stay tuned. it took joel silverman years to become a master dog trainer. but only a few commands to master depositing checks

at chase atms. technology designed for you. so you can easily master the way you bank.

in the us, three in ten college students drop out. but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift? the one with new responsibilities? one thing can't tell you, but the right combination can. universities are using ibm analytics to understand pressures in and out of the classroom- some expect to cut dropout rates by twenty-five percent. ibm analytics is working to make education smarter every day. so you're a small business expert from at&t? yeah, give me a problem and i've got the solution. well, we have 30 years of customer records. our cloud can keep them safe and accessible anywhere. my drivers don't have time to fill out forms. tablets. keep them all digital. we're looking to double our deliveries. our fleet apps will find the fastest route. oh, and your boysenberyy apple scones smell about done. ahh, you're good. i like to bake.

with at&t get up to $400 dollars in total savings on tools to manage your business. all right. heading to the close very quickly. just a look ahead of the earnings coming up. disney's the big dog, of course. you have etsy zillow and activision. >> atlanta fed 130 comes out. the s&p moved down 10 parts. lockhart said he could support a rate hike. >> he's a fence sitter. he's a centrist. there's a guy that's going to be a swing vote in the fomc. he says he can do it. that changed markets in ten year

yields. lockhart is what moved the market and not after today. >> and numbers that could move the market of disney's earnings. thanks, bob. we'll be watching for those and others coming out in moments here. stay tuned for the second hour of the "closing bell" with kelly evans and company. i'll see you tomorrow. thank you, bill. welcome to the "closing bell", everybody. i'm kelly evans. let's see how we finished at the session. we started off the month yesterday with red arrows across the board. today we're actually adding to that. the dow giving up another 50 points. apple's performance did not help. it was down more than 3% again today. the s&p down about 5 points. that's good for 1/4% decline. the nasdaq did better. that was down 9. there is a slew of earnings after the bell today. julia borstin. diana ol anything.

mary thompson will break down etsy's numbers and dominic chu. we'll get you the numbers. let's get to today's panel. we have michael santoli and guy a adambi. you're in the box. >> the stock has underperformed enough. if you look since the spring when it pushed up 130. sideways trade. 120 was supported. broke support. now it feels as though it wants to retest the levels we saw in late december and the middle of january which is 105. what's wrong with it? i don't think anything's wrong with it. i think the stock has been under pressure. it's the same company as it was six months ago. i don't think anything has fundamentally changed. we can talk about valuation until we're blue in the face. to me the technical suggests that we want to retest that 105 level. i don't need the hate mail. i know the visceral response it creates out there in the

audience when you say anything remotely negative about the stock. even the most ardent bull would have to suggest or admit that the stock has not trended well for the last five or six months. >> i think that negativity tells you something. mike i don't know whether you have a view if apple is some sort of barometer for the broader market why we've been a little weak? >> i've been saying for a long time apple is not a bellwether. it's the biggest stock but it does its own thing. last year from april to november it was up 57% in a flattish market. it obviously kind of gets overloved periodically. people were lunging for the megacaps to participate in a two-week rebound. >> wouldn't you like to get over loved? if we think back apple ever since earnings has been really down. the cause there was just the iphone number. it was about in line maybe a slightly lower, just didn't wow people and since then we've had the china concerns. that's apple's big growth market

also. then you've got the technical issues. that aside, we're going to have news, actual news from apple. next month they'll launch an iphone. if history is a guide we'll build. >> before we get on the underpinnings of the markets, greece has been open for two days. banks are down 50%. barely talking about it. ours looks okay. are these the forces that are testing the market here? >> they are. i think the broader kind of commodity that we've had for a long time now, it calmed down today to have a flattish august market today. i do think those have been -- the global growth pressure has been constant and i do think that in general sentiment's really backed up even though we haven't been down much. so i'm not that concerned. we're still knocking around the swings. >> guy, what are your plays in this environment? look, yesterday the low rate

trade seemed to make a lot of sense. today you get comments from dennis lockhart and it's jumping back up over 2.2. >> some insurers are getting whacked. i think the trades remain. look, i do think health care works. we've been beating that drum for a while. i still think there's a lot of reasons to own not the least of which a lot of consolidation in the space. you saw some ridiculously good earnings out of amgen. i get that the majority of biotechs don't have earnings but the ones we talk about on your show and our show at 5:00 do. they're all great companies. i think health care still works. i think even now look at conico phillips yesterday. it did a round turn. they spun out phillips 66 in early 2012. we've retraced that entire move back to the levels that we've spun it out from. if it can hold these levels maybe conico is interesting. i'm not suggesting that the space is fixed, but if you're looking for an entry point, the lows that we traded yesterday

might give you one. >> allstate's quarter, they talked about the increase in auto accidents, guy. what did you think of that? >> let's not -- don't get me started on auto accidents because i drive into the city every day and i see some crazy stuff. i mean, people out there, you've got to put your phones down and you've got to relax. you're not that important. i mean i can see why accidents are up because i drive on the new jersey turnpike every day and i see things that you shouldn't see. >> distracted driving, mike. >> also the number of miles driven in aggregate is up therefore, accidents are up. it was a little bit of shock to people investors that thought this was a clean story, going to be nice and easy. its a slight adverse of a better economy. >> i know that is the case if you look at the number it is outsized to the number of miles driven. jay fishman in asking him, look is all this technology going to enhance driver safety? he said some day first it could make the roads a little bit more dangerous, john? we need the tech sector to join

that. >> activision. >> it's not traded in the after hours. no real quote yet in the after hours trading. we have an earnings beat 13 cents a share. analysts looking for about 8 cents a share. revenues posting a very healthy beat, $759 million. analysts were expecting $660 million. so a very good beat on both earnings and sales. they've also raised their 2015 earnings share as well as revenue guidance. those boosted forecasts come above annual lis's estimates. also, they gave current quarter q3 earnings and revenue guidance also above analysts estimates. again, it looks like an earnings trifecta if you will. the earnings sales, and forecasts all coming above analyst analyst's expectations. no trade on their shares. we'll keep you posted on what

happens here. right now, a healthy beat. this is the company behind big franchises like "call of duty" and "world of war kraftcraft." let's get out to etsy's results. the stock action isn't great, mary thompson. what's going on? >> no, it isn't. the company beat the top and bottom line revenue, $61 million. they were looking for 60 million. the company's revenue growth was just about 44%, which was pretty much in line -- which is pretty much in line with where it was in the prior quarter. that's good news. again, the company was impacted in part by the dollar. that was to be expected in the second quarter of the year. so, again, etsy beating on the top and bottom line. so far investors don't like the news. we'll take a look at the press release and see if we can see the reason why. >> thanks mary. shares down 14% after hours, john? >> it's the guidance kelly.

it's the guidance. they roll out a number of different reasons why they talk about the third quarter not being great. they talk about, of course, currency, which we've heard from a lot of different companies. they talk about marketing spending. they intend to do a lot of marketing spending in the third quarter. they say they're going to hire a bunch of people. new company out of the gate wall street has to get used to how they kmuncommunicate. they have to get used to telegraphing this. springing all three of these things on investors, that's what you get. >> is it the right kind of guidance miss or the wrong kind? >> it's absolutely the wrong kind. i feel this is not a company that's engendered a high conviction base. the reason we're talking about them is there are five companies that are bigger and more interesting but didn't want to go public. when they were describing etsy is amazon going to take it over is it like pinterest?

>> let's be honest about etsy. >> business. >> if amazon is coming after you, you better spend money because you know they're going to. jeff basos isn't going to tighten up his wallet and say i'll spend a little to take out etsy. >> guy, what about you? >> this is a $12.80 stock in the beginning of july traded up to 22 and change. that's a huge move in the course of a couple weeks. what's my view? my view is if it can hold 17ish, which is sort of where we're trading, i think on big volume tomorrow, this is a 50% retracement of the entire month of july. for a trade you can own it. i don't love the name of the business it's a volatile name. for me the level is 17 bucks. >> active vision blizzard anybody interested? >> i was so busy crafting my esty thoughts i didn't craft activision. >> we talked about mobile gaming, whether you're mobile

big company like this you depend on keeping the hits coming, they appear to do so. enough to placate investors. shares are up a little bit 1% after hours. not a lot of time left guys. let me get back to you in the market generally here. you know what do you do? you have the commodity complex deflating. you have the china story. you have u.s. and the rate hike as well to figure in. what do you like? >> the last man standing has been the s&p and it's been unbelievably resiliant. we've talked about that for a while. we have a lot of people talking about raul paul. he wasn't doom and gloomy but he's getting ready for what he thinks will move the down side. what do i like? i still think you have to trade things. the trade remains in health care. we talked about etsy now. you want to trade tomorrow this thing holds 17 bucks. for a trade it's really interesting despite what the trades were. active vision big short interest of 9%. i think that stock can continue to go higher in the after market

as well. summed it up for you, kel. >> love it. thank you, guy. that's guy adami. you can stick around for guy and more of the "fast money." they will be all over this. speaking with with analyst dan i was ives prices. walt disney still waiting for earnings. can "avengers" help the company deliver super hero earnings? we'll get you instant analysis of those results. zillow will give us a read on the market. you're watching cnbc, first in business.

♪ i built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands of dollars each year going back into my business... that's huge for my bottom line. what's in your wallet?

more earnings. let's get to dominic chu. >> another earnings beat first solar is up 6%. 5% up to 27,000 shares of volume. we have earnings coming at 92 cents a share. that beats the average analyst estimate of 36 cents a share. $896 million beating it for $752 million. full year and sales guidance both come in above expectations. those shares rounding by 5% on

pretty decent volume on first solar. >> dom a nice beat by first solar digging through some of the grid numbers on the back of president obama's announcement yesterday. solar power generation year to date through may was up 50% on the year. there is a business you like. >> huge growth. this stock was down 25% or so. obviously primed for a little bit of good news. >> exactly. one that's been beaten down as well. we'll get disney earnings out here in just a minute. we should mention as well espn which disney owns has talked about how it might go direct to consumers and i wonder how significant as we await to hear from the mlb and nhl all of this over the top stuff will be in the sports area especially? >> i think it's significant long term. i think disney's been saying all the right things. if that's what's demanded if that makes sense we'll do it. for now the cable bundle has value. i think they're probably right with that. they will experiment with things around the bend if not over the

top. >> around the bend? >> stream, experimenting. it doesn't mean they'll have the pricing power they always did. >> let's get to the results. from walt disney julia borstin has the details. >> disney beating on the bottom line reporting earnings of $1.45 per share. that's 3 cents better than wall street had been expected and up from a year ago quarter. revenue though coming in a little bit lighter than wall street had expected. revenue $13.1 billion versus revenue of $13.23 billion. the revenue up from a year ago quarter. what's responsible for it coming in lighter, it looks like the media networks and parks and resorts. to look at a couple of the key divisions here real strength from the studio different by "the avengers" sequel. studio revenue up 13%. studio operating up 15%.

some annual lists thought there would be a write down on tomorrow land. the studio is not doing a write down on tomorrowland. other key areas of strengths here. the theme parks also showing strength in the u.s. on volume and guest spending. now there isn't a lot of detail here. impact of foreign exchange rates. i would expect forex to be one reason. also because there is so much attention on espn i want to look at the media network's division. the cable networks had 5% revenue growth 7% operating income growth and the company says they have been higher program sales and increase affiliate revenue. adding to disney channel, abc family and espn saw growth in affiliate revenue partially offset by lower advertising revenue and there were contractual rate increases for the affiliate revenues as well as an increase in subscribers. kelly on the earnings call we'll be listening in very closely to

see if bob iger has anything to say about the over the top direct to consumer espn service that he mentioned on "squawk box" just a couple of weeks ago. definitely interesting to watch. disney down slightly lower than expected. we should keep in mind that disney does not provide guidance itself. >> thank you for now. disney chairman and ceo bob iger will be on "squawk on the street." for more reaction now to those numbers let's bring in bill swede. welcome to you both. bill, what do you make of these numbers? >> disney just rolls along. we're long duration investors. we don't get too excited about each quarter. you look to see if they are improving the business all the times. these very solid earnings reports are the fruits of the investments from five or six

years ago and the fact that disney has content and entertainment that people want to spend money on. it proves that our economy can get better if people want to spend money. >> you're not troubled by the revenue this year? >> no. little wiggles like that don't mean anything to us. we've owned the stock for the last eight years. remember warren buffet said selling it in 1966 is the biggest mistake he's ever made in his career. >> we should also mention s&p capitol said under bob iger's stewardship it has gone to a market capital of $200 billion from 57 billion in 2005. porter, what about you? the shares are still down after hours. do you want to share any concerns of the market right now? >> not in the least. bob iger has put together a juggernaut. it's much, much more than a media company today.

you guys have talked about streaming espn. i don't think that will happen any time soon but it will be on the contracts with the cable carriers start to expire in 2017. they will dribble little tidbits out because there's so much interest and so much competition but the real -- the softness in the revenues, i think that's the uncertainty of the economies in both europe and china as well as forex. but everything else is firing on all four cylinders. wait until q 4 when "star wars" opens up. it will blow the top off of any opening records at box office. it'll unleash a whole new tore rant of merchandising. anything that bob iger has done with pixar, lucas films, marvel unbelievably intelligent and profitable. they're paying off in spades

right now. >> kelly -- >> just one second bill. let me get to julia with more detail. what do you have for us? >> yeah just in terms of disney with a 3% -- i'm sorry, 3 cents than better expected. the revenue coming lighter than wall street expected. it seems like a lot of that is because of weakness in the euro compared to the prior year. at disneyland paris in particular. i'm sure we'll hear about the foreign rates exchange issues on the earnings call coming up. the various divisions it is growth across the board with the exception of interactive. media networks parks and reserves consumer electronics. we should look for more detail on forex coming up on the call. >> we certainly will julia. bill, what are you going to say? >> probably the biggest challenge for disney is going to be dealing with the change in the demographics of the united

states. for the last five to ten years we've had an enormous apartment of 20-year-olds. a lot of them are getting married this summer. we'll have a lot of 0 to 5-year-old kids in the next three to seven years and so espn has just been coining it for the last five to ten years. that's not unusual when you have a lot of single males, a lot of people who weren't employed in '09, '10, '11. the most important thing i think they'll have to look at is how is -- there's two large population groups the baby boomers and the baby boomers' kids. that's who you've got to entertain to make a lot more money in the next ten years. >> i love always the demographic. let me get the panel in here guys. what are the early responses to these numbers? >> well disney's got everybody. they've got young girls, they've got middle aged guys. i mean across espn lucas film pixar, now "star wars."

i'm as excited as a 5-year-old boy at disney world about "star wars." but i wonder about valuation. you look at this disney chart over the past five years, ten years, pick a number it's going straight up. at what point do you say, look at the interactive line. they can't figure out how to make money in that division. does that become important at some point? does this become some sort of valuation concern? >> porter? >> well look at 26 times pe. it's not really over valued when time warner is 21 times and other media and entertainment companies are in the 20s. there's a lot of up side for disney. by bob iger's own admission, however, you're right about one thing. they haven't done well in the interactive and they haven't captured the kids' market and there's a huge opportunity for disney to stream kids' content and go after that market in a much more effective way. they've been parcelling out some

product, some content, netflix, amazon, they should do their own kids network on the net and be a blockbuster. >> porter, bill thank you for your thoughts. a lot for us to think about. we'll keep an eye on the shares as we hear more from the company. we also have an earnings alert mobile. dominic chu. >> we talked about gluu mobile because it's behind kim kardashian, signed britney spears. they have a couple of other high profile signs. earnings come in better than expected. a penny per share on an adjusted basis. they were looking for a 4 cent loss. revenues come in light, $47 million. they were looking for $52 million. that was the average analyst estimate. they also offered both q3 revenue and also earnings guidance that falls below analyst estimates as well. that's why you're seeing the 13% drop in the shares right now. i should point out the 13% drop

is 130 shares worth of volume. they've like i said before signed a couple of other people to the roster. nicki minaj and jason statham join the roster of celebrity game profiles that will be featured on gluu mobile games. interesting deals with regard to talent, however, their forecasts and their current -- or their past quarter sales fall below estimates. that's what's perhaps driving a lot of that move downward in those shares kelly. >> a big downward move. 14%. keep an eye on it. thanks a lot, dom. we have zillow's earnings out. we'll bring you those results next. plus the big names reporting during this national bonanza. the national hockey league signed a deal. it's coming up on the "closing bell." keep it right here.

it's been another fast and furious move. >> etsy coming in. you can see the moves. they come in 7 cents for a loss. analysts looking for 8 cents on a loss. the shares are down 11%. etsy lower. first solar on the opposite. you can see the shares surging by 11%. that's after the company reported earnings, sales, and a

forecast thabeet average analyst estimates. now we're looking at shares of lendingclub. they're on the move. they post earnings err share 3%. beats the average by a penny. $96.1 million in sales. that beats the analyst estimate of $92 million. they have current quarter and full year above estimates. the shares up 6% and activision started trading again four or five minutes ago. the shares are up 6%. healthy for earnings sales and forecast for activision blizzard. fun games for them. back over to you. >> dom, thanks very much. guys we have disney shares. those were the odd man out, a little bit weaker after hours. of this group, what jumps out at you. >> disney is muted. i don't consider it an upset surprise. disney comes in a few cents ahead of estimates all the time. i think it's a relatively solid

little stall in this stock. but i agree with john with regard to disney in general which is everybody agrees with that. used to have concerns about the theme park business acquisitions. none of it anymore. >> john? >> what strikes me are costs, kelly. gluu, there was supposed to be a revolution. they had figured out something that the older guys hadn't but look at sony outperforming play station, activision and king down 18%. you see gluu with huge costs, not only costs of revenue up but their marketing costs higher. they're having to pay the kim kardashians nicki minajs to play games. they were supposed to be viral on their own. on etsy's front, the same thing. >> same thing. >> they have established beach heads and loyalty like amazons, apples. they don't have the same kind of costs issues that some of the

newer players have. we're seeing the newer players come down over the months. >> suddenly activision is up 6%. breaking news with mary thompson on travelers it seems. hi mary. >> breaking news on travelers which is a dow component. the company's ceo jay fishman will be stepping down. he is going to be replaced by alan schnitzer who currently runs the insurance company's larger unit. fishman will remain as chairman is because of a neuromuscular illness. this was disclosed earlier this year that mr. fishman had this. he has had a tremendous run at travelers. that might be an understatement. the dow component, the stock is up over 160% during that same period of time the dow jones industrial average is up only 69%. so again, jay fishman stepping down as ceo. he will step down on december 1st. he's being replaced by alan

schnitzer. mr. fishman will remain as chairman of the company. an 11-year run that was really tremendous for the company's shareholders. back to you. >> mary, i don't know if it's too early to know anything about alan schnitzer and how he will steer the company after jay steps down? >> i think he will stay on the same course. the company is very much focused on returning capital to shareholders and that has been a focus of a very tight operating procedures as well at this insurance company. i'm not sure there would be any change in direction in large part because it's been a very successful strategy so far. >> yeah it has. appreciate it. mary thompson with the latest on travelers. time for a cnbc news update. sue herera. >> kehl a new medical break through could mean a big difference for patients with pancreatic cancer. researchers have come up with a very simple urine test that detects the cancer in its early stages. currently the diagnosis for

pancreatic cancer comes too late. former illinois governor rod blah blagojevich asking an appeal court to hear his appeal. he's currently serving a 14-year sentence. actress jessica alba is responding to complaints that her sun screen is ineffective. she and her business partner issuing an open letter on the company's website saying the sun screen has passed all testing requirements but they are working to address instances where the sun screen did not work. president obama meeting with u.s. secretary general -- u.n. secretary general ban ki-moon to discuss climate change. today is the president's 54th birthday. former president bill clinton saying hopefully when the first lady isn't looking he can have some cake. many, many more. happy birthday mr. president. that does it for the cnbc news

update. >> if he's anything like the 110-year-old woman who said it took three miller high lives and a shot of jack daniels that got her to age 105. >> there you go. >> that might be the wrong strategy. >> perhaps something else. >> that's right. thanks a lot sue. appreciate it. etsy shares sinking after its earnings report. up next we'll discuss whether you should buy or share the stock. this bmw plant is not in germany, it's in south carolina. that's fast becoming a hub for auto and plane manufacturing. you might be surprised to find out why. we're going to talk about that later on the "closing bell." lse sees. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours.

welcome back. another name for you, zillow is out with its quarterly results. let's get out to diana olick on the numbers. >> zillow reporting a loss of 1 cent per share. that's a beat on both of them. expectations was for a loss of 26 cents a share on 169 million. so you've got better by 25 cents a share and 2 million on revenue. now zillow is also reporting that it has currently 141 million average users. zillow's ceo saying that they will have integrated, that is the deal they bought in the

first quarter. spencer rascoff says they will have successfully combined all advertising products by the end of the third quarter. that was ahead of expectations. also though the agent advertising is slightly below estimates but it's not quite as bad as it looks because they're seeing the end of short-term discounts that we saw going into the summer. a beat on shares and revenue coming in from zillow. loss of 1 cent be on 171 million in revenue. kelly? >> reassuring investors. diana, thank you for now. let's get back to etsy's earnings. that stock was sharply lower. right now we're joined from wed bush securities. gill they're just under $17. so from your point of view they have further to go. anything in these results change your view? >> no not at all. in fact their volume growth accelerated again to 24%. it was 39 two quarters ago.

revenue will decelerate this much pretty soon. to get that 43% volume growth they have to increase marketing by 77%. so as john said earlier, they're increasing expenses at a much higher than revenue. that's not sustainable. pretty soon revenue will decelerate. >> wow, john. >> so gill what are their options? they need to team up with somebody like an ebay newly independent and trimmed down? they have a real challenge from amazon trying to get into their place. surely they won't get all of etsy's base but if they get some that will hurt. >> that's exactly right. if they don't go back to basics amazon will have a tremendous amount of success taking away customers. mostly taking away sellers. sellers want to sell against other hand-made good sellers. on etsy they're selling next to

manufacturers and counterfeiters. >> gill, if etsy goes back to its core to that heritage, just how big is that market? the issue for a public investor will be how exciting can that be over several years, let's say? >> they'll take a step back but then growth will be sustainable. right now all of their growth isn't sustainable. they're gaining it by buying ad supply that shouldn't be on etsy in the first place. sooner or later that will collapse. if they went back to basics took a step back from that point on they'll have sustainable growth which is what investors want. >> in the mean tile, gill we know what you think will happen if they don't do that. appreciate it. we've got a market alert on oil to get to. dominic chu, what's happening? >> this is the weekly american petroleum institute private trade on weekly oil inventories. weekly crude oil stocks fell by 2.4 million barrels, also that

gasoline stockpiles fell by 1 million barrels. they also said distillate stocks were up by 1 million. there was a draw down of crude oil supplies and inventory by 2.4 million barrels and 1 million barrels worth of gasoline. we saw a little tick higher on oil on that bit of news. still, more high frequency data. the weekly data from api coming out right now showing a draw of crude oil inventories. >> this has been moving crude normally. normally sports leagues sponsor with corporate sponsors. partnering each other is unheard of. it's unheard of when the nhl teams up with major league baseball in a deal worth more than $1 million. they join us exclusively when we come back. o love stickers. what's up with these things, victor? we decided to give ourselves stickers for each feature we release. we read about 10,000 suggestions a week to create features that as traders we'd want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. who

reads all those? he does. for all the confidence you need. td ameritrade. you got this. i'm only in my 60's. i've got a nice long life ahead. big plans. so when i found out medicare doesn't pay all my medical expenses, i looked at my options. then i got a medicare supplement insurance plan. [ male announcer ] if you're eligible for medicare, you may know it only covers about 80% of your part b medical expenses. the rest is up to you. call now and find out about an aarp medicare supplement insurance plan, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans it helps pick up some of what medicare doesn't pay. and could save you in out-of-pocket medical costs. to me, relationships matter. i've been with my doctor for 12 years. now i know i'll be able to stick

with him. [ male announcer ] with these types of plans, you'll be able to visit any doctor or hospital that accepts medicare patients. plus, there are no networks, and virtually no referrals needed. so don't wait. call now and request this free decision guide to help you better understand medicare... and which aarp medicare supplement plan might be best for you. there's a wide range to choose from. we love to travel -- and there's so much more to see. so we found a plan that can travel with us. anywhere in the country. [ male announcer ] join the millions of people who have already enrolled in the only medicare supplement insurance plans endorsed by aarp an organization serving the needs of people 50 and over for generations. remember, all medicare supplement insurance plans help cover what medicare doesn't pay. and could save you in out-of-pocket medical costs. call now to request your free decision guide.

and learn more about the kinds of plans that will be here for you now -- and down the road. i have a lifetime of experience. so i know how important that is. welcome back. huge news in the digital sports news today. mlb media has announced a six-year deal with the national hockey league. the deal is valued at more than $1.2 million. they'll add nhl's digital operations and the nhl network will be streamed. it includes wwe, even hbo now. joining us in the cnbc exclusive are the commissioners of both leagues. rob manfred and gary bettman. gentleman, welcome to you both. gary, we'll start with you. so the hockey league is going to

baseball. why? >> well, we're going to work together i think is a better way to put it. we want to work with baseball bam. they have incredible capacity to deal with all of the digital platforms and by using our content, we think we can provide a better experience for fans in both sports and really work together to grow both games. >> you know rob, it seems like what's happening with this deal as well is that the hockey league will get a stake in the technology. at what point does this become a technology platform that happens to serve two sports companies? >> well it is our intention to separate mlb advanced media, the bam tech business as we refer to it from our pure baseball content, and the equity stake will actually be in that separate technology company. >> sure but it still gets to this interesting point where you might say, okay the basketball league, the football league

those are kind of the biggest guys in the room. you know you guys are, meanwhile, finding some synergies, rob, is that a fair way to put it? >> i think that is a fair way to put it. advanced media has been a leader in terms of the use of digital platforms to give fans access to our games in the way that they want them and we're going to provide that same kind of quality experience for nhl fans. >> rob, got to ask. i mean sports is unique content. it's live. you guys have figured out how to stream these live events whether it's sports whether it's not sports whether it's hbo. how big is that significance wise, business wise as we look at the spinout being anywhere from 3 billion to maybe $5 billion in terms of value? >> obviously mlb advanced media and bam tech the technology company, have become very, very significant assets in the baseball portfolio. we think there's room for tremendous growth and we think the partnership with the nhl

will help us realize that growth. >> gary big picture as you give fans more digital ways to track games, how do your traditional media partners feel about this? in other words is it going to displace a traditional television viewer? >> no, i actually think it's going to compliment the great job that nbc does with us both on the main network and on nbc sportsnet. it will complement our relation shns in canada with rogers and tva, but most importantly it's going to take the business that we already have on the digital platforms, make sure we're technologically current and we will evolve with all of the advances and we can do that together. and we have great content to add to the technology that bam has. and there may be some innovative things that we can figure out to do together as well. >> gary i was going to ask if you were going to follow anything else in baseball getting rid of the salary cap. i'm guessing the answer is no

for now so we'll leave it there for both of you gentlemen. >> we're not getting rid of it. if they want help getting one, i'm happy to consult. >> rob appreciate it. gary, thank you guys so much. dual commissioners of the nhl and mlb. courtney reagan has the details. >> hi kelly. it looks like nieman marcus has filed an s 1 for an initial public offering under the ticker signal nmg. this is the second time that nieman marcus has filed for an ipo in the last several years. in september of 2013 it filed for an ipo although ultimately did end up selling itself to aries management and the canadian pension investment group for $6 billion. as of today there is a new s1 for nieman marcus to go public again under the ticker nmg. back to you. thank you, courtney. the ipo pipeline picking up here a little bit, mike as you

mentioned. >> we have petco on the way out. that whole vintage is going out. >> interesting times. appreciate it. south carolina could top next year's list of cnbc's top states for business. more auto manufacturers and plane states are building companies there. why so many companies are choosing to put down roots in the palmetto state next. hello. i am here to offer sophisticated investing strategies. my technology can help you choose the right portfolio. monitor it. and automatically rebalance it. all without charging advisory fees, account service fees or commissions. that may be hard to compute. but i'm a computer. so trust me. it computes. say hello at intelligent.schwab.com you totalled your brand new car. nobody's hurt,but there will still be pain. it comes when your insurance company says they'll only pay three-quarters of what it takes to replace it.

what are you supposed to do, drive three-quarters of a car? now if you had liberty mutual new car replacement, you'd get your whole car back. i guess they don't want you driving around on three wheels. smart. new car replacement is just one of the features that come standard with a base liberty mutual policy. and for drivers with accident forgiveness,rates won't go up due to your first accident. learn more by calling switch to liberty mutual and you can save up to $509. for a free quote today,call liberty mutual insurance at see car insurance in a whole new light. liberty mutual insurance.

let's start here with dominic chu and more on blew mobile's holdings. >> we want to point out for glue mobile that the earnings did come in at one penny per share beating the average analyst estimate for a loss of four cents a share. however, revenues did come in better than expectations. it's $57 million. $57.5 million. the average analyst estimate was for $52 million. it was not as prior reported before $47 million. so again, revenues did come in as a beat. also the earnings per share coming as a beat. however, their q3 event revenue guidance and q3 earnings guidance were below analysts' estimates. just again wanted to make sure we got that out there. they also did sign nicki minaj and jason statham to deals in their celebrity roster than pz the latest on glu mobile right

now. >> and the shares slightly off the lows. a new manufacturing hub taking shape in america as more auto and airplane companies build plants there. the state of south carolina is generating some big business. phil lebeau is down there with the details. hi, phil. >> reporter: hi kelly. one of the biggest is here. the boeing plant just north of charleston. they are building six dreamliners here inside this plant right now. a massive facility that is picking up speed as they bring more people onto the workforce here. when you look at south carolina, it's not just boeing. it's not just bmw. but it's a collection of businesses, especially in the auto and aerospace industries. look at the benefits that the state has fraepd those two industries. it is now 18% of the state's dwchlt dp. auto and aerospace are the two top industries. and south carolina's unemployment, which was at 11.7%, has dropped all the way down to 6.6%. it's still above the national average but it has come down considerably in part because of the manufacturing jobs that have been added. and one other thing that doesn't

get enough attention from the outside press looking at south carolina, it's the infrastructure. the port of charleston is the fastest-growing port on the east coast. it is currently being dredged, made deeper. that will improve the traffic flow. and that's important for companies like bmw. we were out there today. hundreds of bmw suvs that are built in spartanburg getting loaded onto a ship. they're going to be sent around the world. a lot of those ultimately ending up in china. if you take a look at shares of bmw. the thing to keep in mind with south carolina, it's not just boeing and bmw, it's a number of other manufacturers like michelin. there is a talent pool in this state that has been established over the last several years and they're starting to reap the benefits of that. guys, back to you. >> phil, while you're standing in front of that beautiful airplane i just have to ask you, did you see that patent airbus filed for that supersonic passenger jet? they say it can carry people from new york to london in an hour. is this for real? >> reporter: the patent is for real. the application for it is real.

will we see this plane? i would be stunned if we see it in our lifetimes. the reality is this. when you look at the idea of saving on fuel or saving on time, the airlines have made it clear, as much as people want to save on time kelly, the airlines want to save on fuel. and for this type of an aircraft to ultimately succeed it's going to take a lot of investment and a lot of fuel. >> all right. i still love the concept, i guess. thanks so much phil. really appreciate it. great stuff all day there from south carolina. and i like how he says bmw. breaking news on hedge fund manager john paulsen. kate kelly, what's going on? >> some interesting developments here on the purported monsanto sin genta deal. the large agricultural company monsanto made an overture to syngenta the swiss pesticide company in may. that was rebuffed. but john paulsen looking to see a deal still come together. someone familiar with paulsen's thinking tells me he thinks actually the two sides are not too far apart on price which

indicates of course that they're still talking. a recent investor poll suggested that most investors would like to see at least a 5% premium on that $45 billion original price. we'll see about that. but i can also tell you that paulson has taken a small position in syngenta and if the terms were correct would likely vote those shares in favor of a monsanto purchase. details still emerging but this deal's been in the news because people seem to think it's being resurrected, kelly, and my reporting suggests that that's the case. one major arb seems to think it very well may work out. >> kate thank you very much. our kate kelly with the latest on that potential deal. we're just minutes away from multiple conference calls. disney and zillow included. we'll bring you what to listen for when we come right back. but utilities can now predict where the power will go out, within a few city blocks. working with ibm they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed.

ibm analytics from the internet of things is making energy smarter every day.

welcome back. the disney conference call starts in just moments. guys, what are you watching for? >> you want to hear their commentary about espn. obviously people want to hear about this tomorrowland. i think the market shrugged that stuff off. >> john. >> i want to hear about the parks and resorts business. it's an interesting read on the consumer. also what their plans are for merchandising in digital ahead of this huge back end of the year thing they've got coming. >> thank you so much for going through all these earnings with us today. mike santoli and jon fortt. "fast money" starts in moments. what are you guys watching for?

>> in addition to disney kelly, etsy. price is truth, kelly, and the stock is down sharply in the after hours session. >> is that the guy adami? >> it's a guy adami sock puppet we got from etsy making its appearance once again. also in all seriousness the shire -- david faber will be joining us with the latest. "fast money" starts now. live from the nasdaq marketsite overlooking new york city's sometimes square i'm melissa lee. our traders on the desk tim seymour, dan nathan karen finerman and guy adami. here's what we have coming up on "fast." shares of disney falling 3% on its earnings report. the conference call just kicking off right now. we are bringing you the latest headlines throughout the hour. plus one beloved tech stock just hit an all-time high. we'll hear from the analyst who says it is the ultimate bargain. he'll tell what you that stock is and why it could be cheap right now. our top story tonight, that would be apple. the numbers are staggering. since its recent high july 20th the comp