the elements. the air in maine is really nice. folks, have a great fourth of weekend. everybody, be safe. turned out to be a pretty good week in the market. >> despite brexit. "closing bell" starts now. hi, everybody. welcome to "the closing bell." i'm kelly evans back here at new york stock exchange. >> welcome back. >> team is back together. >> what a week this has been. i'm bill griffeth. s&p on the track to have the best week since 2014. so much for the brexit crisis that shook friday and monday. we'll talk about whether the worst is over or if volatility is here to stay for the markets for the foreseeable future. >> we know bio tech was hit hard in the first half of the year but the second half, july 1st, there's a big catalyst many investors are watching.

we'll tell you what it is and it could impact the space. new details emerging about that fatal tesla auto pilot crash. we'll talk about what the driver was doing at the time of the crash and whether this is an issue for tesla or the self-driving car industry as a whole. plus, the new report says while instagram's users numbers are strong, the people sharing is declining. what it means for owner facebook's growth prospects. we'll talk about that just ahead. let's start with the s&p trying to lock in as bill said the best week since 2014. a strong rally adespite rates lower across the globe. sara eisen sat down with fed chair stanley fischer and asked him what could be done other than negative rates. >> i don't think it's worth speculating on whether we'll be driven to any of that. i hope it goes the other way. i hope that we strengthen and

that the economy strengthens and that we continue along the slow, very gradual, path we have been on and that the rest of the world is recovering in such a way that that wouldn't create negative reflex effects on us that would have to be taken very, very seriously into account. but we'll watch all of that. >> well, let's talk about all of that with these fine folks and the exchange today. heather hughes checking in from washington. keith bliss is at post 9 here at the new york stock exchange. and rick santelli, i'm going to start with you with the nice flag tie there. it seemed like every morning this week when i opened up the cnbc app i was taken aback by the low yield of the 10-year and the 30-year continuing lower and this morning all-time lows. are you guys trying to sense where a bottom might be for the yields at this point?

>> you know, there's no way to tell, bill. i think it's pretty logical that we would be looking at lower for longer. for obvious reasons. i think there's a lot more anxiety in the world and the glide path and the markets, you know, gave brexit the kind of reaction, frankly, thought would be normal. doesn't surprise me. i'm surprised by the vote and not by this. really nothing is really changed. more of the uncertainty is yet to come. but where can they go? they can go anywhere. hey, you know, listening to stan fischer, first of all i hope i think they're not great words from the fed. you know? only thing he left off is hoping for world peace. i have great respect for him. a very smart man. they don't have the answers. they don't know what lies ahead. i personally think it's not banks systemic risk to worry about. it's ours and others central banks. i worry about basis point 10?

yes. would i bet on it? no. we are having a hard time testing the current low and on that 30-year bond. you're absolutely right, bill. we traded down to 218. but by a third of a basis point if we want to be technical we didn't get a new low close below the january 15, but, you know, i call it a tie. splitting hairs here. we'll get it. it's just how far on that 30-year i'm not sure of. >> you can afford to. i can't afford to split hairs myself. >> i'm refinancing. 30-year all-time lows. that's on my to-do list. >> don't lock in yet. because by the time you close it may be lower, right? >> true. you're right. i mean, $10 trillion around the world government bonds are trading in negative ter tore right now. you're paying the government to hold your money for you and certain countries and i don't think the trend goes away. i agree with lower for longer. i think in the first half of

this year you saw investors flocking to the u.s. as a safe haven and the 10-year and government bonds and government securities, as well. and that could push the 10-year lower from here. i have to -- whoever called my name out, i have to wish him a happy fourth next time in the new york stock exchange. maybe i'll figure it out. i do think that that trend will continue here in the u.s. in terms of the defensive nature, the flight to quality, flight to safety and the thirst for yield. >> keith, are you refinancing here? >> yeah, absolutely. i was going to say healther is a favorite on the new york stock exchange. >> thank you! >> so whenever you pop up on the screen you get lots of fans hooting and hollering. >> i would love to. i'm very lucky. thank you. >> and the whoops started early for the three-day weekend. >> yes, they have. >> as it relates to equity market, it is a bond story and then the impact on the equity market and the yield story and looking at the u.s. yield curve,

and around globally, switzerland is now negative across the entire yield curve so i don't think it's a lower for longer story. i think it's almost a negative forever type of story. and therefore, money will chase into the best house on a bad neighborhood to search of yield and safety and that's certainly u.s. equities and the trade today, bonds are up. gold is up. and equities are up. >> yep. >> searching for yield and safety. safety u.s. equities right now. >> let me ask you on the equities. i mean, we were joking earlier. last week at this time, certainly we could have foreseen the best week in two years this week. i mean, we had an absolute "v" put in in the equity markets on market into tuesday. is this for real or what will you do with this? >> interesting note that we have here going on right now. if you take a look at what's happening on the internals, breadth, advance decline line and the flows into the upper

trending stocks, we are triggering and we can go higher from here. this is not any kind of a dead cat bounce. when you look at the strength of this move and the last three days. i think when's interesting the note about last thursday, friday and monday, there's clues that this could going to warble out of the system. taking a look at the vix, went up and didn't spike into the 30s and 40s and signaling calamity and the smart money waited on the sidelines, cleared out and let everybody lose money friday and monday. came back in and bought bargains and where we sit today. >> rick, there are people watching the commodities space. outperforming a little bit here just as it was left for dead. >> no. and, you know, this makes perfect sense to me. what can make them look better? listening to janet yellen and carney and draghi. makes commodities look better even with the volatility. one thing to ask heather and keith, you know, we always say flight to safety.

i think we need a new term because i'll tell you what. i don't think treasuries and boons and guilds and -- >> they're not safe? >> no. not in a true sense of the word and flight to printing press. he who has the biggest print press -- i mean it. if you're in the middle of the ocean, a hunk of rock to stand on is better than nothing but it wouldn't be your first place to claim as home for the homestead. safety leaves a lot to be desired. >> treasury building is not too far from here, rick. they might welcome you over here. you might shut it down. >> heather, what do you tell clients about the treasuries? just ignore them? >> no. you can't ignore them. i think right now if you don't want to call flight to safety or still concerned i guess you're sitting on a lot of gold and gold rally 24% in the year thus far. but this may look a lot like y2k. a lot of noise in terms of brexit and scrambling and then

the end of the day we didn't destroy the world. the markets as you said, bill, we had that "v" motion and right back up to where we were. and i think the markets can head higher. even with a 10-year at all-time lows and already tunnel it. >> real quick -- >> been able, 108 times we have rallied arguably since the bull market began to new highs in february of 2009 with near zero rates. i know the chicken will come home to roost some point in time and we have tunnel it thus far. >> keith, would you feel differently here about what do we call bonds at these yields and levels? >> what i was going to say is every asset class, this is a relative trade and while i do agree with rick on the merits and probably longer term, there's lots of things in the world troubling to me, the debt loads, negative rates across wide spectrum of bonds. they're really signaling something longer term and a

relative trade right now and seeing money flow into so-called safe haven assets and right now government bonds, u.s. government bonds are safe assets. >> and there is no alternative, right? i mean, you know, rick, keith, if you are not in government bonds and why investors are flocking to u.s. stocks to roll the dice, i guess, and hopefully get some return. >> yeah. that's what barney frank said about the mortgage market. how did that one turn out? >> oh boy. >> good point. >> just when it's getting good we have to go. >> happy fourth. >> have a good, long, safe holiday weekend. moving on, bmw is teaming up with intel and mobileye for a self-driving car as the future of the industry is called into question by that first death of a driver using the autopilot function on his tesla. phil lebeau is more on the story we first talked about yesterday. phil? >> bill, people are saying is this the end of the talk about self-driving cars? no. not even close and seeing them coming in the future.

when? today bmw with mobileye and intel said, you know what? we see this happening within five years. in fact, today at a press conference in munich, they talked about the plans for building a fully autonomous vehicle. 2021 target sale date and the car initially fully autonomous sold or driven in special urban areas. in other words, put a perimeter around saying this is where you can drive it fully autonomous. looking at the self-driving vehicles and out there in terms of what needs to happen still, you have regulators who need to set the framework in terms of how these standards will be developed here in the united states. yesterday secretary anthony fox of the department of transportation said they're looking at these and hoping to come up with later this year. the key issue, focusing on the security as well as the safety of these systems. nobleye no doubt at the heart of the debate. mobileye under pressure after

the word of that accident in florida came out. it was up fractionally today on the news of this project with bmw and intel. and as for that investigation in florida, new details coming out today. first of all, police did find a digital video player in the tesla that crashed into a tractor trailer. they didn't say it was playing a movie but remember the lawyer for the truck driver said that the truck driver went over after the accident and saw harry potter playing suggesting that the driver watching a movie instead of paying attention to the road. nhtsa analyzing the data from the tesla and other data and no dashboard or in-car camera and nothing to review in terms of was the driver paying attention, brake, swerve? what happened at that intersection. here's a google earth image of that intersection just for a better sense of what happened here. the tesla was heading down highway 27 in florida and you will see that the tractor trailer turned in front of the

tesla. whether or not it was properly signaling, whether or not the model s had no sense of it coming, this needs to be sorted out an gives you a sense of where that accident happened. shares of tesla, 25,000 tesla vehicles have the autopilot software. you have to pay $3,000 for it to be turned on in the vehicle and 25,000 people who are using it here in the united states. still a lot of questions about autopilot and the safety of autopilot and whether it needs to be altered in a fashion. those details coming out as they look at this accident. >> stay right there, phil. will the tesla accident set the self-driving industry back? that's a question for rebecca lindlan from kelly blue book. you got -- more like driver assisted, you know, at this point. so how autonomous really are we

talking for a lot of cars coming out here do you think? >> well, in this particular case, it is quite autonomous in that it does drive itself, it will steer, brake, it will accelerate. it's sort of like cruise control on steroids to some extent. but it is as phil said, it is a feature that's voluntary. you elect to use the feature as you elect to use cruise control. drivers need to pay attention. this is an imperfect system. >> do we, rebecca, have standards emerging for black box technology in the vehicles? because people will have to determine fault. >> well, they are, kelly. i think that, you know, we have to encourage the regulators to sort of catch up and move quickly so that we can put this technology on the roads so that we can move forward with this. there's a lot of benefits to having autonomous vehicles when

we think about mobility for the elderly, for disabled. for people, you know, that don't have that type of mobility right now. but we have to get regulators to really keep up with it and to get some rules in place so that we can understand when these kinds of things happen and we can learn from them. >> phil, this is certainly tragic because it involves a loss of life but when you have an incident like this one, it becomes a learning experience for the developers because there was a special instance where the car and the autonomous system couldn't recognize the truck because of the lighting and all of that. they have to figure out that part. >> to that end, bill, there was an executive of mobileye today in germany saying, look, the software and the system is not designed to prevent this type of accident. it is to slow down moving forward on traffic. but you're maybe looking at unusual circumstances here. again, we don't know all the details of this accident. and one other thing to keep in mind, they not only have the

data from this model s but tesla tracks the data for all model ss including those that have autopilot. they have 130 million miles of da to to analyze to say, okay, this works, this needs to be tweaked and that's data that investigators will be looking at, as well. >> that's exactly what i was wondering. can they pull from there and determine what happened? >> yep. they can. >> thank you, phil. and rebecca lindland there. appreciate it. dow up 37. churning this afternoon as we look to close out an extraordinary week. transports up. vix down. the online music streaming battle getting ugly. apple now responding to spotify's claims of anti-competitive practices by the tech giant. meanwhile, apple is reportedly in talks to acquire jay-z's streaming music service tidal. up next, will bio techs come back to life in the second half

of the year? we have a look at cat lialysts turn around this group.

welcome back. williams companies lower in the wake of that massive board battle at the energy infrastructure company. six of williams 16 board members resigned after an attempt to oust ceo armstrong failed and those members supported a takeover by energy transfer equity. energy transfer equity abandoned the deal. cooper replaces at chairman. he stepped down for personal reasons. williams company's down 4% as they sort things out there. bio techs also took a beating in the first half of this year. meg terrell has a look at what the second half holds in store. meg? >> kelly, folks hoping that the second half holds better things for bio tech. analysts calling it a roller coaster ride and the down slide started in september when hillary clinton started to tweak about drug prices but looking at

the performance over the first half it's been a rough one. folks hoped far recover in june and got what they're calling a kick in the gut. compared with s&p 500, doing quite poorly for the year to date. now, if you look at the big four bio techs, see the pain is felt even in the bigger names and folks thought you would find safety. all down quite a bit this year. but there are some catalysts in the second half both from smaller companies and bigger ones and people hope turns sentiment around and emphasize really bad right now. take a look at what some of those. sarepta waiting on a delayed decision of the fda on a drug. i was just speaking with an analyst saying the stock could triple if they get approval and expecting the decision in two weeks and could go down to $3 if they're rejected. sage therapeutics, people say it

could be under the radar for july and one to watch. celgreen with a cancer drug trial. and then what i would say is big one is eli lily reporting sometime before the end of the year. people saying it could be big enough if it's positive to turn around the industry. but there's no guarantee that's positive, bill and kelly. >> no. but they have made great inroads in to figuring out what causes alzheimer's and what to do about it. question is trying to develop a treatment to really take advantage of that research. right? >> well, we don't know exactly what causes alzheimer's but they did learn a lot from previous studies so these drugs are targeted at the plaques in the brain. >> exactly. >> earlier studies and failed they found that some patients may not have had the plaques to remove in the first place and moved into patients with earlier stages of alzheimer's disease and hoping to yield positive results for lilly.

>> it does seem, meg, like the whole sector waiting for that next big thing. you know? like the cancer stuff was such a big deal here and if alzheimer's, if they could crack that to the point you were making, that seems clearly like it could be a big catalyst. >> right. people are waiting for some really good data and when we have good data in bio tech, it's great for investors and medicine. people are waiting on this and saying we have seen so much data disappointing recently that's pressured bio tech valuations and people wonder even in the health of the big names, do they have to do transformative m and a to turn around the growth trajectories? >> thank you so much. >> thank you. see you later. 43 minutes left in the trading session or thereabouts. pretty quiet. let's face it. volume is low. volatility is low. but we are capping off pretty

much the best week the markets have seen since 2014. >> might get loud in here in ten minutes, too, so just beaware of the whoop whoop before the long weekend. a new report saying the manhattan real estate market is slowing down. we'll look at a long term or temporary trend. up next, though, the war of words of apple and spotify heating up. we have the latest of the front lines of the music streaming wars when we come back.

apple's war of words with spotify escalates amid reports of apple is in talks to buy jay-z's tidal music streaming service. >> let's get to josh lipton. josh? >> let's right, kelly. apple is standing its ground in this fight with spotify. remember recode reporting that spotify sent apple a letter claiming apple blocked the new app for the iphone and spotify saying apple insisting that spotify use the billing system. apple charges for those using that system. i have a letter of apple's general counsel and fires back saying to 'em pli that spotify should not have to pay to avail itself of the benefits of apple's hard work just like every other developer does, would you give a tremendous

advantage over other developers it's simply unfair and unreasonable. "the wall street journal" reports that apple is looking to buy tidal run for jay-z. how are the two stories related? well, because tim cook if he did buy tidal would also be picking up 4 million paying users eliminating some competition and beefing up the music war in the war with spotify and told us in march it had 30 million paying users and apple with 15 million users, spicking up tidal and maybe a rap mogul in the process couldn't hurt. i also want to mention earlier today cnbc did report that apple ceo cook is on the boards of both nike and disney and cook is only on the board of nike. guys, back to you. >> you know, the talk of apple buying tidal, i heard the tidal was struggling here so who do you think is more interested in this deal, apple or jay-z?

>> there were certainly a lot of reports we know of struggles there. i think what apple would pick up here are these exclusives and early releases, right, bill? kanye, beyonce. if cook was to buy tidal that would eliminate that competition. certainly when you have those kind of exclusives early releases another way, of course, cook to differentiate his music streaming service from the rivals throughout. >> we'll see. thank you. time now for a cnbc news update. sue? >> hi, kelly. welcome back, by the way. here's what's happening at this hour, everybody. nbc news reporting that extremist militants holding about 40 hostages inside a restaurant in the diplomatic zone in dhaka, bangladesh. a total of four security personnel have been killed. no americans are believed to be involved. president obama has been briefed on the situation.

the deputy commander of iran's powerful revolutionary guard lashing out against israel warning that 100,000 missiles ready to be launched to hit the heart of the zionist regime. senator marco rubio says the toxic algae in florida is an economic and ecological disaster. he said it smelled and looked like an open sewage pit. and how about this deal? the new york mets owed former player bonia about $6 million from the long-term contract and instead of paying it off, they paid him about $1.1 million for 25 years. every july 1st. that includes about 8% interest. the deal runs to 2036. we're not going to get that deal, guys. >> boy. >> we are just not.

>> a nice pension. >> exactly. >> good for bobby. >> think of it as an annuity. >> exactly. just won that lottery. thanks, sue. we have the last 30 minutes of trading heading in as we head for the whoop whoop for the three-day weekend. the dow up 35 points, a leading trader is standing by to tell us what he's watching into the close heading into the long, holiday weekend. also ahead, may be hotter in new york city but the real estate market is showing signs of cooling down. the story that will surely be a topic of a few fourth of july barbecues this weekend. ♪

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welcome back. we have talked about the markets comeback this week. take a look at the sectors with telecom leading the way as interest rates continue to slide. health care up more than 4%. on the flip side, materials are actually just barely higher on the week, bill, but technology one of the underperformers still up 2.6%. >> we missed the great whoop whoop going into the close here and none was louder than kenny. i can't hear out of my left ear right now. a remarkable week closing out here, isn't it? nobody could have foreseen the

up week after the last friday and -- >> last friday, right? we were going into the abyss. and today look where we are. almost challenging the highs again and feels like it is flipped to the buy side in terms of market on close data. right? want to close above 2100 going into the weekend. psychologically that's important. >> gold continues higher. the yields on treasuries continue lower toward record lows and the vix is down. the cross currents. >> because on the one hand market's telling you everything is okay and gold maybe signaling not so much and seeing that in the next week and earnings start and pay attention to the forward guidance but is the forward guidance going to change? are they more cautious? will the market pull back a little bit? i think it will. >> jobs report next friday, as well. >> will be a big number and all about that next week again. but i think the fed made it

clear rates aren't going anywhere and in fact odds are for a rate cut. >> you heard that first right here, folks. have a good, long weekend. >> you, as well. >> kelly? >> thank you, guys. it's been said there's no investment like new york city real estate. cnbc wealth editor robert frank joins us with develops in the big apple. robert? >> there are signs of trouble ahead, especially at the very top end of the market. the average sale price in manhattan topping 2 million in the quarter, up over 8% in the year. median sales price up to $1.1 million. the number of sales up around 2% from last year and strength is coming from deals of the past. because buyers who signed contracts for new condos about a year ago when the market was strong, those are now closing as the buildings come online. there are more signs of weakness. inventories up 11% over last

year and inventory of existing homes up 25%. that's the biggest increase in inventory in over seven years. even more troubling than that is decline in bidding wars. last year, 31% of sales of manhattan were for above the list price. this quarter it fell by half to 16%. with a lot of those new condo towers under construction, the inventory is likely to continue piling up that's going to put more pressure on prices. now, the higher up you go in the real estate market, the weaker in prices and sales. volatile stock markets. properties and the top 10% are now sitting on the market for 169 days in manhattan, more than twice as long as the broader market. the expensive was bun of the new condo towers, $59.1 million. the buyer remains a mystery since they purchased it like many of these buyers today, through a private undisclosed

llc. back the you guys. >> i wonder, robert, you know, there's obviously a lot that's particular to the new york city market. >> very much so. >> i'm reminded of the comments talking about a lot of kind of city center rents and why there's probably going to be a little bit of deflation there as people look to maybe buy a house. i mean, we have been saying for a while that this could or should be coming. >> in new york and urban center markets the prices for sales and rents just got so ridiculous, especially for sales that in new york or in other urban centers the 10 million plus market, that's the market that got so overheated, so bubbly that right now the wealthy saying those prices are not worth it. it's really at the very top in the biggest urban centers, london, new york, miami, seeing the biggest weakness and the broader market is fairly strong. >> yeah. >> we know people who are waiting for prices to come down

in manhattan and i keep telling them, go to the suburbs for value. >> you get the stamp of approval. >> i'm listening for the producer. 22 minutes left in the trading session. starting to lose altitude with the dow up 23. we heard about the new york city real estate market. how low can mortgage rates go as government bond yields continue to drop? our diana 0 lick has a special report. sharing is good thing, particularly in social media. at instagram, users aren't sharing as many photos as they did. that's next.

welcome back. shares of netflix 5.5. a price target of $120. trading at 96.5 right now. analyst there says he expects strong international subscriber growth to return in the fourth

quarter and into 2018. meantime, facebook shares higher by 30% in the past year and the photo sharing app instagram announced it's reached 500 million monthly active users up from 100 million just 3 years ago. >> despite the rapid growth, a new report of the information says the number of photos shared is declining and could potential to trouble of facebook. with us is corey wineberg. thanks for joining us. how did you pick up on this? >> well, i wanted to look under the hood of how exactly instagram is doing beyond the monthly active user number and daily active user number touted by companies. a really interesting change to the app lately is going to a personalized feed and the reason in part that they have done that is because they have experienced

a worrisome trend which is number of posts per user declined and thinking this could help reverse that trend. >> is it possible that we're seeing the beginning of social media fatigue? how many social media -- >> i'll raise my hand. >> well, i'm with you, as well, on that. are we emblematic of what's going on considering the platforms and can't cover all of them at the same time, can we? >> yeah. no. that's a good point. i think this is something that instagram's big brother facebook has had to deal with, as well, this year. which is the case that, you know, people just are getting a little bit of stage fright i think on social media apps and prefer more of a lean back experience and browsing through the app rather than posting themselves. the app that's capitalized on this behavior shift is snapchat and you are not blasting out a

photo or a post for the world to see. it's a little bit more private than public. >> what's this mean, cory, as instagram starting to monetize the app and really get advertisers involved and the possibility there? can they be an extremely well run, profitable even, business? >> yeah. things are going well in general right now at instagram. they just started monetizing in full last year. they have a long runway. the concern for leaders within instagram is could be a forward indicator of lagging engagement over time and something they're keeping an eye on. other than that, their strategy is essentially they are for ads purposes a part of facebook. advertisers can choose to run ads on instagram part of the facebook campaigns and i don't see any kind of ad revenue

slowing down in the near future. if anything, things are growing on the financial side for instagram. the key is paying attention to the engagement trends. >> just occurred to me, i forget who said it but somebody saying that 80% of the users on instagram are overseas and doesn't that impact the ads on there? >> yeah, no, for sure. i mean, look, they have sales markets around the world for sure. but one thing that instagram is trying to do on the ad side is figure out can they get more ad dollars from tv budgets just like facebook is trying to do. >> right. >> right now, biggest advertisers on instagram similar to the ones on facebook which is a lot of app developers, a lot of retail and so they want to make sure they broaden that ad market over time including overseas. the biggest money is here and

obviously in europe. >> yep. good to see you again. thank you. >> thanks so much. >> cory weinberg of the information. s&p up over 2100 here. nasdaq up. with america's birthday just three days away, david darst will be here with a special independence day acronym and fireworks happening here at the new york stock exchange at the closing bell so stay tuned for that, too, coming up.

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hi, everybody. i'm sue herrera. welcome back. we have breaking news on warren buffett and berkshire specifically. they have applied to expand its wells fargo holdings beyond 10%. they currently hold about 9.4%. so they have applied to expand that. we should note, however, that berkshire says it does not have any present intention to acquire additional shares of common stock of wells fargo. however, berkshire assesses market conditions and may decide

to purchase additional stock hair shares based on the evaluation of the market and those purchases. so, bill, they have held wells fargo for an awfully long time with 9.4% of it and they want to expand it perhaps in the future above that 10% threshold. so they're not necessarily going to do it now but they want the ability to do it in the future. >> yes. it has been a core holding for a while. >> a long time. >> for charlie munger bought in with the newspaper and bottom ticked it during the financial crisis and for the people that talk about the banks and not investable, you know, warren buffett doesn't put a dollar more into wells not better deployed somewhere else. >> without seeing value there. we'll see. >> that could be a money maker. >> thank you, sue. >> let's get to david darst whose tie -- >> looks like a picnic. >> looks like a picnic, she

said. how are you? >> our friend charlie will be 93 years old on january 1st of this coming year and our country this coming monday will be 240. >> doesn't look a day over 25. >> younger every day, bill. >> depends on the airport you are at. >> what's on your mind? >> usa. that acronym, base clu the "u" is united kingdom and europe affini affinities. johan gerta wrote about relationships between people. some people get together like wine and water. you can't unmix them. others are like oil and water. you cannot mix them. and let's hope that we have more wine and water with europe and the uk. this second in the "s" is second quarter and second half earnings and got to see them talking about a better looking outlook for the coming rest of the year.

the dollar's going to play a big role in there and amazed how it's able to stay nice and soft here with all of this going on and the flight to quality that's been going on. that having been said, the japanese yen is up 17% year over year. and china is down 6% year over year. this is not just this year but going back a year ago. so we need to see those currencies and those economies doing the economy's doing better without having a currency war begin. amazing flow of news this week. i think you have seen -- >> is that the "a"? >> "a" is asian currencies. and my tie that welcomes like a picnic. >> 240 on there, as well. >> 240, bill. >> amazing. >> is the birthday of our nation. i think we have seen the u.s. is going to -- if we can get earnings, you can see the market lift but selectivity is called

for real estate investment trusts up 13% total return this year. master limited partnerships. energy stocks. be careful chasing the highly valued value stocks now. telecom, utilities, up 18% year over year. year to date. >> what is more attractive then? when's more -- >> kelly, you can look at some of the bio techs stocks beaten up and selling for 12, 13 times earnings and a good flow of product. you could look there. gold up 100%. the gold index. i think you can take a little bit off the table here. let things calm down. but the dollar and low interest rates, the thing that concerns me the most, if you're looking for something to worry about, european bank stocks, some of them are down 75% this year. >> right, right. >> the index is down 37%. and they're selling for four to five times -- half book value.

>> at that, you don't hear warren buffett buying them. >> worth less than smucker's at this point. >> you are seeing bailout activity in italy, bill and kelly. they say that 20% of their bank loans are nonperforming and that would be a very, very dangerous thing for us if they don't step up. i'm glad to see them paying attention vie a lovely weekend. >> thank you. happy birthday, usa. >> yes. we'll take a break, come back with the closing count and a fireworks display with the 40th birthday of the macy's display here in new york. google glass, it is a medical marvel. a special edition coming up. you are watching cnbc, first in business worldwide.

welcookay. just inside the two-minute mark. a remarkable week for the markets, equity markets, best in two years essentially. close enough. the dow after hitting that bottom on monday coming back for the week. up 3.25%. not bad. the 10-year going to near record lows this week. this morning. 138. it bounced off that now at 1.45. gold with a good week to the upside as people rushed in to that safe haven in the wake of the brexit vote. for that week, up 1.8%.

i would have thought more than that. bob pisani, telecom -- this is reflective of how the first six months of the year went and this was just this week. telecom, utilities, health care. >> all in. >> consumer staples and industrials. those are the five best performing sectors this week. >> not just that happened but everything went up this week. so i did this little board here. >> except the vix. >> s&p up. gold went up. bond prices went up. high yield went up. and treasury prices went up. and the dollar wept up. all week. we bought everything, basically at this point. >> yes, yes. >> there's something that's a little strange about this whole thing, particularly with the dollar index here. that's one thing that worries me. two things that are mess us up in the second half of the year strong dollar and rates continuing to develop. that will have an influence on

most financial stocks. a tough one. >> have a good fourth of july weekend, my friend. happy birthday, america. here they're celebrating the 40th anniversary of the macy's fireworks display in new york city with the fireworks display. there you go! stay tuned for hour number two of the closing bell with kelly evans. have a good weekend, everybody. wow! that was really something. welcome to "closing bell," everybody, i'm kelly evans. fireworks in markets, too. up 16 points on the dow today but this week one of the strongest we have seen in the last couple of years. the s&p there on the bell adding 4 points. the nasdaq's up 19. we'll have more on all of this. tesla reporting a fatal wreck

and thomas wilson tells us how insurers are looking at self-driving cars and assessing those risks. joining us today is senior markets commentator and columnist mike santoli with evan newmark and beth ann balino. david seeburg with us, as well. mike, first -- all right. hold that thought, everybody. we have breaking news on auto sales. let's get right to that with phil he bro. >> kelly, they have calculated the rate of sales for june, disappoint number. auto data says the sales rate of june 16.66 million vehicles. again, that's the pace of sales. that is far below what people were expecting. most expecting at least 17 million, a few optimistically thought 17.1. but again, the sales rate for june 16.66 million. kelly, back to you. >> phil, what was the expectation? i mean, how much of a miss do

you think that we're looking at here? >> most were saying 17, 17.1. there were a few saying it might be 16.9. nobody down in the 16.6 range. you can look and say it's one month. not the end of the month and showing discipline of not jacking up the incentives too much. however, 16.66 for june is viewed as a disappointment. >> phil, thank you. what do you think, mike? >> what's interesting about that is the market was not as perturbed all day and now gm, ford, all the big automakers had been weak as we were at a peak sales rate and the market more or less got the story to ease back on sales. i don't know if that means they expect a full trend to be down. >> it's true, david. a lot of these stocks even as sales were at a record high not necessarily pricing that in but more and more concerned. what kind of, you know, as you look at the automaker themselves, how do you think they resnakt. >> no. look. it's why ford's trading at

roughly six times next year's numbers and like 5% dividend yield on ford right now and no one wants to touch it. i say it gives you an indication, kelly, about global growth and the expectations from that point. but look. i'll tell you what. there's deal earls and the people that i have talked to, dealers, the actual car dealers themselves pressured by the manufacturers to take on more inventory. they can't sell it. it's a real issue. i think you stay far and clear from these autos for sometime now. >> okay. people will be in their autos this weekend. evan, welcome back from your trips. talk about the markets for a second. what a crazy week it's been. what do you make of it? >> i think there's basically a tale -- a conflicting tale. the equity market has done relatively well. bond market did record lows today in the 30 and the 10-year. which means that the world should be falling apart and the

u.s. economy has a deflationary future. but you believe that, the u.s. stock market should not do as well as it does and the strength is in the high yielding, you know, the utilities, telecoms, consumer staples which is where you expect it. basically a giant bond market play is what the stock market is. >> to that point, does the underlying economy look that bad in. >> certainly after the brexit everything -- unprecedented what happened with the brexit, impact all across the world. however, in the united states, we think that the impact while we'll feel it is going to be less than what you'd expect. we are big and just basically have a lot of debt. what we're looking at, though, basically 2016 gdp at 2.3%. and indeed, because of international issues we are increasing the risk of recession to -- >> what about the fed? some ways markets were pricing

in a rate cut or starting to increase the odds of a rate cut here taking a hike off the table. what do you think? >> well, i think markets are saying 2019 or maybe 2018 for the first rate hike. i think that -- or next rate hike. i think the fed, we have a number of months to go here. and the fed doesn't know. they're waiting for the data. what we are looking at is first while the u.s. economy is slowing down, you're seeing resilience in the domestic market. housing is holding up relatively well. consumer spending holding up okay and saw good retail sales suggesting more strength in there and the fed moves in december. again, they're not sure, as well. >> you mentioned the brexit. today's a week since britain voted to leave the european union. >> if it was just general political risk you can sort of make an adjustment but when it's

something that's going to go on and unwind over the course of time, it's much harder because you've got to think of what are the things that could happen when? >> he was saying, as well, that he doesn't want -- he hopes we don't see negative rates, evan. goes back to when's happening here. >> the fed -- the market, what the bond market is saying that the fed has zero credibility. the bond market is effectively saying right now that you can borrow, the u.s. government can borrow money at 2.2% plus or minus. >> 30 years. >> over 30 years and the fed, they're little dot map has a fed funds rate of 350 of -- >> 3.5%. >> basically saying don't -- you can totally ignore the fed saying and i think for investors this is the key question over the next year of investing. which is, either bond rates are low because the global economy is entering a slow secular

period from which there's no escape or the bank of japan and ecb's actions with the fed's earlier actions so deformed the bond markets that you can't figure out what the true price of money is anymore. >> i think the way to reconcile this is a high lick wety low but positive growth story and doesn't mean bonds and stocks in different directions if you have essentially that as inputs. i also don't think that the fed lost credibility. raising rates and this growth outlook then they lost the credibility. dots of an input, not really focused on and the fed saying we need to wait and see. stan fischer said we need to sit back, let the numbers come out. i thought it was interesting to characterize april's jobs increase of 168,000 more than adequate to keep the employment growth picture going. if a week from today we get 200

thousand plus, we have a different conversation. >> the job number's really important because the bank of japan at the end of the road. they have nowhere else to go. europe is not that far behind and then there's real issues. >> in terms of the jobs numbers, basically a tiebreaker because other jobs numbers rather strong. keep in mind, we have seen payroll tax increases picking up and nobody wants to pay taxes unless they have to. >> david? >> i was going to say brings up a good point. central banks at the end of the ropes and throw it to mike who i think is one of the smartest guys in the room there. mike, like, at the end of the day getting to inflection point and central banks are losing control to the point where the market is impacted or could be impacted in a major way? five years ago, don't fight the fed. do not fight the central banks and the policy allowed stocks to rise and asset, you know, values to increase and are we getting the point where you really got

to start to kind of scratch your head and wonder how many tools do they have left in the tool box that are effective? >> i would add i don't think it's losing control when, in fact, what they're doing is exerting tremendous control over the price of money and the yield of corporate bonds across the world. you might say it's distorting down the road but they have control to focus on. >> the yield has plunged 17% going back to that vote from britain to leave the eu down 40% this year under 1.5%. dia diana olick has a look at this. diana? >> reporter: mortgage rates loosely follow the yield. there you go. the average rate dropped in just ten days and more importantly the rate held in the past two days even as bond yields rose slightly and today down again amid the global bond rally and not as record lows yet.

we need another .125% drop and takes another event like brexit and then lenders are tough because for one they're already busy with today's rates all those new refis and they might see some clients bail out of locks and try to go lower. to say the least, unexpected in general the rates are still so low today looking back a year and .75% lower, including the fed rate hike last year and we saw a pop up there and you can see that mortgage rates far more dependent on global economic issues than readings on the u.s. economy which have been improving. so, as far as housing goes, well, this make more people buy homes? probably not. rates have been low for a really long time. and the biggest issue is not the rate but the ability to qualify for a mortgage and to find a home to buy. lower rates will push more refinances so lenders are as i said very busy right now cashout

refis could add to consumer spending especially in the home remodeling arena. kelly? >> thank you. cheers your heart. >> i have told medium, if you're a young person right now, rates are really good. you know, i think there's some funny business with the banks right now. i called to get some quotes -- >> not giving you the rate, are they? >> not as much pass through on the rates as you would think there should be and so the banks either they're afraid that rates back up on them very quickly and look stupid or trying to keep the margin and they have no other way to make money right now. >> a great point. by the way, keeping that margin they will be better positioned than let it go down all the way. still low by historical standards. beth ann, thank you. david, appreciate it. much more of david next hour starting at 5:00. carter worth who called the surge in silver is back and telling the gang where he sees it heading next. apple reportedly in talks for tidal music streaming

service. we'll look at whether the deal makes sense or whether it's tidal wave sized mistake. this holiday weekend is expected to shatter records for the number of people hitting the records. we'll break down the numbers coming up. at the td ameritrade trader offices. 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 and 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. td ameritrade.

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welcome back. online music streaming is bad and ugly. apple is saying the guidelines help competition, not hurt it. the fact we compete has never influenced how apple treats p s spotify or others that distribute digital music. of course, the's new reports saying apple is considering buying tidal. but why? ed lee is here with us and gene munster from piper jaffrey. you ever used tidal, ed? >> no. >> do you know anybody that does? >> no. according to reports about 4 million paid subscribers to it. the's some people that use it, absolutely. doesn't compare to spotify with

30 million about. apple music about 13 million. so, you know, it's a race for the subscriber thinking about it music subscription you don't need more than one. right? chances are you're not buying and paying $10 a month. you only need one and that's what they're all fighting about. >> gene, if apple wants these streamers, why shouldn't they buy spotify? >> well, probably should ultimately. and i think that that kind of plays into one of the bigger themes. spotify has more meat to it. keeping the pricing is a percent and a half to the overall revenues and critically important is getting spotify or tidal or just building their services business overall is higher margin and more predictable and what apple's pushing for here to try to do this. >> ed, it seems like everyone is trying to find their way in and around music streaming and subscriptions. and the way it's set up right

now doesn't seem like the pie of subscription dollars is big enough to spotify. >> it's not big enough, also, for artists. they're not paid enough. that's the point. that's where, you know, where whether it's tidal or spotify to play off each other the idea to be better for you and give you more of your money back signing with us. it's a rights battle as much as anybody else. >> tidal is staked its reputation on friendlier to artists and coming in to apple, could it leverage tidal's base, make it into something bigger and kind of improve those terms for everybody? >> that's the only reason why i see it might make sense. most reasons i don't think it makes sense and just kicking the tires. i think it's unlikely the deal happens and one aspect of the strategy of bringing in these artists, bringing in developing the relationship or cementing those relationships to secure the rights deals. >> you are a big music guy.

>> huge. i don't use any of the services except for pandora which i get for free. so, you know. >> otherwise you buy them? download? >> i'm an old-fashioned guy. >> slaying the guitar. >> keep the guitar and the cds. in case the internet somehow breaks down. i have a question for gene, actually. which is, how important is this whole music streaming to apple? i mean, in the scheme of things, does it really move the needle for apple and stock or really just a nice to have? >> it's part of a bigger, more important services business. but to answer your question right now, it is about .5% of apple's revenue from the music. paying up a big premium for tidal, it would be about a quarter of their cash balance so we're talking about super small numbers an putting it again into the context of everything that apple's done like the dd billion dollar investment in china, services around music, you get

the 12% of the overall businesses and that's something that investors are dying for. more predictable and the apple model and trying to stoke that theme. >> finally, ed, you know, it seems to me apple is so big, so much cash and, you know -- >> too much if you ask me. >> you don't want it to be foolish with it and serious of the businesses, i come back to why not go for the real market leaders? why nibble around with tidal? why sort of even go there and not just kind of gobble up the big guy? >> there's nothing to say they haven't been doing that and discussions down the line. tidal up for sale all year. they went to samsung. apple is taking a look. i think you make a great point, though. all the cash laying around. why mesh mess around with the little guy. if you're spotify i don't think they want to sell to apple. that's not their game plan. they want to be bigger than

anything else out there and the idea of apple is to get more recuring dollars now that iphone sales slowed down. >> thank you for joining us on this friday afternoon. have a great long weekend. >> thank you. you're not alone if you love that new tech in the car but it's coming with a price. up next, allstate ceo tom wilson explains why the insurance goes up as the cars get smarter. later, a report discussing the fbi didn't let many americans know they were on a secret isis kill list. more details when we come back. who lives here and flies to hong kong, to visit this company that makes smart phones, used by this vice president, this little kid, oops, and this obstetrician, who works across the street from this man, who creates software. they all have insurance crafted personally for them. not just coverage, craftsmanship. not just insured. chubb insured.

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fidelity -- where smarter investors will always be. national highway transportation safety administration is investigating a tesla car. earlier this week at the aspen ideas festival i asked ceo of allstate how much the unxaen is thinking about driverless cars. >> we are thinking ate it more than self-driving cars but personal transportation. the whole method in which we move people around in the united states is going to change dramatically over the next 15 to 20 years. it will be cheaper, better. i think it could be one of the single biggest economic opportunities in america and double or triple the savings rates. >> insurance? >> just all personal transportation. so today, 95% of cars are sitting idle. even in traffic, like 80% in to

the busy hours. nobody's using the cars so we have $4 trillion worth of hardware. we have sensors, gps, technology, all of which help us make that cheaper and better for people. what we are doing at allstate is involveded in the connected car effort with a million people connected with us and making the driving experience better. if we do that, we'll have a great future. >> for right now, i'm insured with a car as an individual. >> yes. >> going forward, will the car itself be insured much like, you know, any kind of warranty or, you know, how would that contract work? >> probably a number of things. first, the cars themselves insured just for what happens to them. i suspect one point you will be insured as a driver no matter whose car you are in. >> even not driving? >> well -- >> being transported. >> protected by whether the car itself is self-driving, it will have a policy only it or you might be sharing a car. so today you want your insurance

to go with you no matter whose car you're driving. it might be ten cars to choose from. you'll be insured with your policy. it won't just go with the car. >> accident rate unfortunately up too, and maybe the losses. is that an issue? >> auto insurance is up somewhere in the 5% to 6% range and higher than in the past. people drive for three things, to work, they drive for errands and for leisure. so -- >> like sleeping in the car? that was a big reason i drove in high school. just circling the city. >> we all drive around. it's cheaper now with gas. >> why. >> you get more trips, highway trips. we record more highway trips and people are working more. and this is more economic and more accidents and expensive today. the cars themselves get more expensive. >> what about distracted

driving? this is a grab bag category but colleague recently had an accident with his car. it was driving itself. and the person in front of the person in front brakes too hard. so, you know, that's not necessarily the same thing as somebody texting while driving but how is all this technology in the vehicle affecting accident rates? >> well, in some ways it is a hurt as you describe so you can't stop people from texting. you go to a stoplight. think it's the right thing and given customers technology to keep people in their car not being able to do that. you can do that. for most people, they like to do it. there's all kinds of distractions. so that's clearly a problem. but then there's some technology going to machine to machine communication, cars not only beep, slow down. going to an intersection, slowing down by 2 miles per hour you miss somebody, the car knows to do that. technology has both advantages and disadvantages. i think it's going to change the

way we move around the united states. good for customers. >> britain voted to leave the european union. what are the affects if anything on your business? >> we have a large portfolio as you expect. it has very little impact on the portfolio. we were up after brexit. >> was that intentional? >> yeah. >> hedging kinds of things or short the british pound many. >> no. we were long on the dollar. we were out of most of the financials in europe. we just didn't see the right risk return tradeoff. and so, i think what it does over a longer period of time, markets like certainty, as you know. this is two years of uncertainty and things will be a lot of volatility. we think britain and the eu are good places to invest. we'll be picking our spots to get in over the next couple of years but it's too soon to move right now is our view. >> again, allstate ceo tom

wilson. a lot of people in the industry are in favor of the technology in these cars because they ultimately think it makes it safer. again, this beak, a reminder it's going to be a murky middle getting from here to there. >> lower loss rates are great. lowers one of their risks but it seems as if a lot fewer people driving fewer miles that's a different part of the equation. premium values. >> right, exactly. again, sort of a thing where even the regulators have let it develop and let everybody put the technology on the road. as there are more accidents, especially fatal ones, i wonder if there's a reversal at all. >> yeah. there will be. but, you know, i think the trend seems to be the thing to focus on. >> are you in favor of -- because look at what happens in airplanes. >> i am. >> i mean, you have to have incredibly well trained pilots paying attention the entire time to intervene and people had the technology in the cars and

watching movies. >> a lot of smart people out there, great technologists and can figure it out. i can't promise you two years from now you never worry about driving again. my guess is it won't work that way. your children, kelly, will probably have that benefit. >> well -- >> my guess. >> we'll see. time now for a cnbc news update. back to sue herrera. >> here's what's happening at this hour. isis claiming responsibility for the hostage situation in dhaka, bangladesh. nbc news reporting up to eight heavily armed militants have taken hostages in the restaurant. the obama administration says it believes u.s. airstrikes conducted in last sikts years outside conventional war zones killed up to 116 civilians and about 2,500 members of terrorist groups. the civilian death count is

hundreds lower than most estimates compiled by independent organizations. hillary clinton's come pain says it's raised more than $68 preponderate 5 million in june. more than 40 million brought in for her own election war chest. the rest was raised for the democratic national committee and state parties across the country. and lyin sanity is back in new york reportedly. he signed a year with the nets. the breakout in the nba came with the knicks when he scored at least 20 points, 9 times, in a 10-game span. briefly becoming the biggest story in basketball. he's still a big story in basketball. >> that hair style. the man bun now. >> exactly. >> that's it. >> good for brooklyn. >> a $36 million hair cut. >> sue, thank you. have a great long weekend. >> you, too. google glass never made it

in the consumer market and one-time hottest thing in tech is getting a new lease in life in the emergency room. hears from a doctor saying the device is cutting down cost and treatment time. planning to hit the road this independence day week, don't expect to pick up a lot of a lot of speed on the highway. details on the recordbreaking number of americans set for a road trip. stay tuned. ok team, what if 30,000 people download the new app? we're good. okay... what if a million people download the new app? we're good. five million? good. we scale on demand. hybrid infrastructure, boom. ok. what if 30 million people download the app? we're not good. we're total heroes. scale on demand with the number one company in cloud infrastructure. hewlett packard enterprise.

welcome back. here's how we finished today. up on 19 on the dow. the big story, of course, was the whole week. one of the strongest in sometime. and this weekend is expected to be a record breaker for travel. 36 million people will take to america's roads to celebrate the fourth of july. kate rogers looks like she's at a gas station. on the new jersey turnpike who's hitting the highway this week. kate? >> reporter: kelly, a very windy turnpike rest stop. vince bomb bar lombardi. the numbers up 5 million from last year. from memorial day weekend according to aaa.

gas prices are at their lowest levels since 2005 with the national average at $2.28 a gallon and has drivers really ready to hit the road. >> july fourth weekend, plan on a long ride up. really have no destination. looking for a really long ride. gas prices definitely help out. an incentive for long roads. >> unless it's over the $4 range, only way to reconsider driving. >> thank god it is not like two or three years ago. thank god prices are lower. >> reporter: now, the highest prices nationwide are actually mostly on the west coast. california coming in at the top spot and then hawaii, alaska, washington and nevada. lowest is in south carolina and a fun fact for you, this is the third consecutive fourth of july with a record number of auto travelers on the road and probably hitting traffic, kelly. >> katd, be careful out there. there's a tornado watch in the

tri-state area. i don't know if people trying to get ahead of that. yesterday it felt like everybody was already getting out of the city. >> reporter: i know, kelly. wrap it up before they make me stay for tornado watch on the holiday weekend. >> that's true. looks ominous behind you. thank you so much. so -- >> what's ironic about the fact of the low gasoline prices is the report that the california attorney general asking for information from refiners about why gasoline prices didn't fall enough and nobody's satisfied with how much -- >> how high is california's gas tax, by the way? >> right. crude oil prices rebounded a lot. enjoy it for now. >> i think we talked off camera a little bit about this. the strangest thing is americans straight back to the suvs and the pickups. >> why do you think that's strange? >> it's not that it's strange. the way economics work. people get a lot more car. i mean, i got a suv. >> purely economic or people just like suvs?

>> they prefer -- americans. >> roomier. taller, sturdier. >> living in europe and driving the pokey roads, small, like old medieval towns, it is hard to get a suv through, you know, florence. you know? >> i'll take your word for it. >> you have to trust me on that. they close off a lot of the city. in the united states, you got big, open roads. you know? drive a suv. you're not going to take a mini around. >> how's the truck fuel mileage? >> we don't measure that. that's a novelty item. not family transportation. people shop at costco and at sam's club. you know? you can't be putting it all in the subaru. buying in bulk. >> the roof of the smart car. we have an update on the increased stake of wells fargo. >> here's what we found out. additional info from the filing. if you combine berkshire

hathaway's holdings with warren buffett's personal holding of just over 2 million shares and the buybacks they have been doing, it put them over the 10% threshold in march. so they applied to the san francisco -- through the san francisco fed to keep its particular holdings and possibly increase them. so it's more of a clarification on what happened. back in march, they were over that 10% mark so they applied to the fed. they may buy more. they may not buy more. they did make that clear they want the ability to do that. and to retain the current stake that they have in wells fargo. digging through some of the details on that. back to you. >> thank you, sue. it goes to the impact buybacks are having. passively increasing the holdings of a lot of companies. >> absolutely. wells fargo did not announce fresh buybacks with the pass on

the stress test this time and not necessarily immediate issue and you look at walmart, for example. buying back stock for years and brought the family's holdings back up to over 50% again even after falling below this. >> if interest rates continue the downward spiral you will see more buybacks because did numbers if you believe the business is growing and you believe your earnings are going to grow, you have to be crazy not to borrow cheap, cheap money. >> if you go from a 5% to 10% stake in a company and double your stake in a company without paying an extra cent -- >> that's the logic of why investors of value liked them before because essentially getting a bigger share of the futu future's company earnings stream. >> good business as you emphasized. isis reportedly placed 15,000 americans on hit lists and the fbi knows about it. up next, why the agency failed to alert some of those on the list and what that means in the

fight against the terror group. consumers may not have caught on to google glass but doctors are putting it to use. we'll hear from a doctor about how google glass is helping him treat patients.

welcome back. new report says the islamic state compiled kill lists of americans. as the names become known, the fbi is warning some of the

targets but not all despite a duty to do so. what should americans do here? bring in steve rogers, a retired naval intelligence officer. thanks for coming down to post nine. >> you are welcome. you are welcome. >> to join us here. troubling story. >> troubling. >> is this a new thing with the islamic state? has this been a challenge in the past? >> well, it hasn't been a challenge as it is now. i'm sure they're gathering lists, probably of political leadership, maybe people in the business world, et cetera. but now we are talking about american citizens and i don't know how they're picking the american citizens but here's the issue. back in the early 2000s when i was on the joint terrorism task force, the remember why president bush created the task force is because when's not being done now.

if the government learns they're on a list like that. >> here's the requirement. we would say, yeah, it should be required. however, there's a degree of regarding the requirements. if it's going to compromise an investigation it can be very, very slick road going down. let's say this. the job of the united states government to protect the citizens. if there's a kill list of american citizens, i believe they're obligated to at the very least let the local police know so that they keep an eye on these people and let us know. >> is there a risk of alarming people needlessly? >> i would wonder if that's the rational of not disclosing. >> mike, it probably is and a ridiculous rational. if we're not alarmed over what we are seeing now around the world to the degree they think we would be alarmed there's

something wrong. on a kill list, you need to know to protect yourself and your family. i wonder if political leadership on the kill list and notified. when's the difference between that life and the life of an average john doe on main street? >> do you expect the authorities are trying to work in the other direction and try to figure out exactly who put them on the kill list and whether there's a plan in place or if it's just kind of a wish list sort to speak. >> it's possible but in this environment today i would not -- look. i would rather lean on the side of safety. nothing wrong saying to a local police department, three or four citizens on this list. we might want to talk to them. they don't have to advertise when's on the list. but it's good to know that, hey, if i'm on the list, why are you on that list? who do you know? what did you do? in fact, revealing the list to the targets may help the investigations that are being conducted in tracking terrorists. >> i mean, kind of a strange bun

because as far as i'm aware not been any -- i don't want to get too gory but no targeted assassinations yet of isil in the united states. >> right. >> or even in europe. the terrorist attacks have been kind of -- >> terror acts of random -- >> easy targets, soft targets. not saying that it's not a real thing. i'm just saying we haven't really seen the nature of that kind of targeted assassinations and a real future going back and may not remember, you weren't alive but in the '70s in europe you had a lot of domestic targeted assassinations and huge terrorist problem like the red brigade. >> they have changed the pattern of attacks, soft targets now and maybe trying to get softer targets. let me add this. the federal bureau of investigation is the best in the world and we have not had a

catastrophic attack because of the hard work they do and hope it's not politicized and director of fbi, great guy, solid guy. i just hope we are not going down the road of political correctness of the law enforcement agencies. >> thank you for joining us. >> you're welcome. >> steve rogers. google glass wasn't a hit with consumers but a hospital giving it a second lease on life. how it's helping transform emergency room treatment next when we come right back. thank you. ordering chinese food is a very predictable experience. i order b14. i get b14. no surprises. buying business internet, on the other hand, can be a roller coaster white knuckle thrill ride. you're promised one speed. but do you consistently get it? you do with comcast business. it's reliable. just like kung pao fish. thank you, ping. reliably fast internet starts at $59.95 a month. comcast business. built for business.

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remember google glass? not quite the hit with consumers that was originally expected. but our next guest say it is tech is taking on a new life within the medical community.

here to explain in today's edition of "the spark" is dr. peter chia wearing what looks like a google glass, doctor. welcome. and how will you using it in your hospital? >> hi, kelly. thank you so much for having me. so we areme. so, we are using google glass to really beam our virtual specialists down us to in the emergency department so we're able to have specialists see people without really being there. just by wearing a simple head mounted device. >> did google each out and say hey, we want you to try this? >> so, as an emergency medicine physician, one of the things we're always really interested in is how we can get specialists to the bedder to improve the care for patients. this was a really cool idea and awesome solution we thought we could have. so, when google glass came out in 2014, we joined the explore

program and started experimenting and then partnered with a company called pristine, based in austin, texas. they were able to make it hippa compliant and secure from a medical standpoint, so we could really use it in the health care setting. >> can you give us an example of an individual where this really came in handy. >> sure. we have patients who, i'm a -- we take care of patients who are poisoned or overdose on medications antd and a lot of time, people will ask us, we're not sure what happened to them. the patient looks altered or confused. when we had residents on our surface go down to the emergency department, we were able to see in real time what people look like and we were able to change some of our management skills to decide on different anecdotes and really change the course of management in real time. >> i wonder how that will

thinkinging a t it from google's point of view, keep them ahead of the curve for a technology we haven't heard much art lately. augmented reality is becoming more popular. sounds like it could offer up a host of new competitors or options for you guys. >> there are a few competitors out there in terms of hardware. in health care, it's the software that's really important because everything has to be secure because obviously, if i'm seeing you as a patient, i don't want your information out on social media or in the public for people to see, so a lot of it is about how we really secure the data. one o f the solutions is to start with these health care related companies. like pristine, which we work with. >> i'm wondering if there are any additional apps. it sounds like you're talking about mostly visual observation. are there other ways you think this could be adapted to enhance or make more efficient the medical process? >> sure. there's a lot of really, really

cool stuff. that we'll see in the next few years. some of the ideas, could you provide patient information to a physician at a heads-up level to they don't have to run to the computer to fipd this stuff or can you use it and really replace the technology we're using in the hospital frs the '60s. we're usinging pagers still. can we replace all that information with a really cool head mounted unit like this and stream like what we're doing, especially in emergency medicine. >> how's the return, peter, on investment? the cost of it. is it generating more savings? is. >> so, we haven't really looked at that yet. our study was funded through the nih. so, you know, it's, the device itself in the software is a lot cheaper than the traditional tele medicine parts out there now, so i think this will be a really interesting way for community hospitals and even large academic centers like ours to save some costs and really

provide, transform department into a telemedicine suite without having to do a lot of complex work. >> thanks. fascinating. google glass from u mass. markets regamuch of the losses from last week. while the immediate future is uncertain, one hedge fund manager sees the long-term upside. that's next. [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be. if only the signs were as obvious when you trade. fidelity's active trader pro can help you find smarter entry and exit points and can help protect your potential profits. fidelity -- where smarter investors will always be.

wouldn't you know it, the s&p posting its best of the year and while investors are digesting the long-term impact, one hedge fund manager sees the upside. paul singer joined me earlier this week and had this to say. >> this is a short-term pain, long-term significant gain stigs. i think they will end up leaving. especially if there can be a coherence of explaining that pain. anybody that tells the british people it's going to be just hunky dori from day one or 201 is being dishonest and will lead the british people to get frustrated very, very quickly. >> again, paul singer there from

elliot management. seems to be no disagreement that britain's vote might be flat for the next couple of years. er the question is does this put them on a better trajectory. >> i lived in england for ten years and i kind of understand all the impulses that led them to leave, but if you look at the prosperity that came to great britain over the past 30 years, i moved there in '86, it was around petro dollars. first, arab countries, opec, later the russians and chinese money. it was the financial services industry. and those are the two pillars of of britain's prosperity. if you take out that pillar of the financial services industry, which in effect if they don't negotiate this carefully, what will happen, things will turn out poorly. >> teresa may, an example of

somebody who can resume the leadership and becomes a margaret thatcher 2.0. that's the kind of long-term gain people would say isn't 100% likely, but possible. >> that's certainly your optimistic case and that britain's vote to leave prompting change in the eu. if they feel that look, we lost a major partner because of this ridge ed bure rocky or other antigrowth policy, then maybe it can create reform on both sides. the head of the eu parliament was already putting out proposals to make it more democratic. this has been a long conversation in the making. >> you know, to mike's point, i did have a bit of a pan gloss yan tendency that things work out for the best kind of thing. i think this was kind of a shake up for the eu and i think that will be better for the eu longer term. whether or not britain leaves,

which is they'll be a little more sensitive to the requirements of. >> and our country is going to be back in focus when we get the jobs report next week. for now, thank you so much. check out more about the spark, cnbc.com/thespark on the so-called brexit fallout. evan, mike, have a great long weekend, guys. "fast money" starts now. >> "fast money" on a friday does start now. the market overlooking new york's times square. traders on the desk are -- tonight, don't like now. the fear and something unprecedented. it could signal more gains ahead. why traders are so excited. plus, the one stock traders went hog wild over teed and it happens to be a adamirk favorite and our traders have four all american stock that could have your