>> ten years microsoft, for example. >> 1% gainer. >> yeah. >> ge. yeah. remember them? >> oh, yeah. >> yeah. >> thank you for watching power lunch. >> closing bell starts right now. hi, everybody and welcome to the closing bill i'm kelly evans. >> we owe power lunch eight seconds they came to us a little early. stoc stocks early at declines. hitting the highs though right now thanks to better than expected economic data and the latest fed minutes which indicated rate hikes will likely stay on hold while the full impact of brexit is determined. among many other things. >> i tell you what that ism services index, 56.5, after the manufacturing rate. we'll talk more. >> imagine if we get a strong jobs report on friday. >> that's what i'm saying. we'll talk more about yields. it's insane what's happening.

the 10 year treasury yield hit a record low. it's rallied a bit. it's given the dividend trade a big boost. we'll break down how to avoid dividend traps and the wall street journal ken brown says why stocks could be riskier than they appear. >> gold has been one of the hottest trades this year, as you no doubt know. the gold rally is just beginning. we found one of the few gold bears to lay out his case against the pressucious metals. we were scrambling -- i don't know who we found. we'll find out coming up. >> tesla ceo elon musk giving into a war of worlds over the time it took the automaker to report a accident involving a autopilot. >> i don't know how we'll get to this over the next two hours. let's start with the global yield crush.

>> bill, another day, another record in terms of low yields all over the world. there's so many jurisdictions all over the place that have these negative yields, these record low yields, we just want to point out a few of them. the notable ones to give you an idea, a sampler, appetizer if you will for just how strange the global interest rate environment is right now. you talk about the global yield crush. record lows in a number of places, japan, east side of things, far east, the ten year japanese government bond jgb yields close to around negative 28 basis points. ten years lending, again minus .28%. a big move there. record low on that side of things. move to the continent of europe, we know that the euro zone bonds a lot of those places countries are trading negative. germany, the ten year there trading negative. almost 20 basis points there with the interest rate there -- and for switzerland. we want to put it up there for shock value.

we've seen half century bonds up and down around the negative, positive mark around flat and they did hit at one point a negative 50 year yield for switzerland. notable move there. of course we'll move across you reference to the united states here. record lows at one point today. we rallied strongly off of them thanks to good economic data. ten years at 1.34%. 2.11 for the 30 year long bond. it's got a lot of people talking about dividend years and s&p 500 and now they are bigger in terms of yield than the 30 year treasury. it's one of many record lows in the interest rate picture today. we'll see if it holds, remember, oversold conditions or low conditions overbought for bonds, oversold in terms of yield. we'll see if that reverts more than we've seen today. >> an extraordinary map there. as the treasury yields slides some companies are rewarding investors with healthy income. we have more on rising yields

but also the risks. >> this vanishing yield story across the world in bond markets piling into stocks. the dividend yield and s&p 500 slightly now higher than 30 year. it's been higher than the ten year treasury yield for month. a lot of people thought that was a reversal signal. not necessarily. a lot of people are talking about the risks in the standard dividend yield stocks like the staples, utilities, maybe they're overvalued but the dividends will be reliable. i'm looking for potential dividend traps that are about the vindividual companies that have eye catching high yields. here are things to think about. you should probably beware of stocks yielding over 5%. not necessarily that those dividends are not safe, but in this environment, that's the mark market's way of saying the dividend itself is not going to grow or the company has serious

fundamental challenges, maybe the company is in chronic decline like old retailers or disadvantaged things like newspapers or printing companies. and maybe can earnings cover dividends on a sustainable basis, that's the big question the market is asking when you have the yield over the 5% market. some come companies would bead seagate technology. that's a double digit yield after a really bad stock performance. it's real questions as to whether they'll cut that. sands not recently covering its dividend. seaworld has had a lot of fundamental challenges and staples is representative of a lot of those old physical retailers that are also about 5%. finally, one area that i think might be underappreciated is old tech. if you look around, 3% yields from intel, going up to about 4% for qualcomm. these are cash cow businesses. they're not the growth businesses they were 15 years ago. people don't think of them as yield sources right now. >> it reminds me a little bit of

a line to borrow mike, mo mo problems. >> the highest of the majors, were the ones that were seeing the most vulnerable to a dividend cut. you have to be careful, not taking the yield numbers at face value. >> all right, thanks very much. looking at the dividend risk there. >> we'll see more from him in just a bit too. >> did you say we're not doing this? okay. yes. kelly, by the way, wrote a great article on the bond boom. you might want to check that out at cnbc.com/the spark. you have your own little space there on the cnbc.com. >> you do too. >> i do? i guess i should visit it once in a while. take a look at that. joining our closing bell exchange today we have renee norris from urban wealth management. steven guilfoyle and rick s

santelli joins us. the yields continue to plunge as the safety play continues, gold continues higher. is that safety play continues, and yet here we sit with equities that the s&p back up to 2100 today. what is it with the equity market? >> today the market got a help from the sector. we've all seen the numbers for deutsch bank. the total exposure. the italian banking sector. there's a fellow by the name of -- i've got to read this because it's tough -- he said e.u. bank failure laws would allow the central bank to recapitalize banks should they bleed out. this was a point of convention. so when we saw that news this

morning, almost on the spot, domestic banks here actually reacted well. and the market followed suit. >> given what's happened with i think the dutch which were among the first to use the bail in clauses that are in the heart of what the italian markets are worried about. if the italian state ends up being the back stop for whatever the political fallout is it will help the markets. >> certainly. the feds stress test, one of the major hurdles is a failure by a major counterparty. there's nothing in there about a failure by a foreign counterparty that cause as cascading failure of three or four foreign counterparties. this is why our domestic banks reacted well. >> i saw in the notes you think -- i mean, certainly uk banks would be radio active right now. you start thinking about nibbling at some point. when would that some point be? what are you waiting for? >> i'm waiting for a few things, one of which is that final

details of this brexit transaction takes place. because we still don't know all of the details right now. so there will be some other pots along the way. i would start nibbling at some of the big well-known banks. in that region. >> like? >> well, probably not individual names. i would focus on an etf that would give exposure to all the european financials. so that way if one doesn't work out on a timely basis, i've got some other ones to kind of protect me and protect my clients' assets. >> what do you make of a lot of these funds exposed to uk property who have gated investors? is that in everybody's interest in order to avoid panic? >> you know, it's hard to say. i think it makes sense. i don't think anybody knows how all of this is going to turn out. indeed, when it comes to brexit

or property or -- it's not only relationships that you mentioned. there's issues, of course, in spain with housing, issues with the toxic real estate. in italy, anybody know anybody who has owned a piece of property in italy? to try to figure out how many signatures you need throughout generations of ownerships shared by relatives, if that's collateral it's not liquid. that's the tip of the iceberg. i agree with sarge, if you look at the charts on ten year yields, 10:00, we did get the non-manufacturized. it was the best since fall. but the market was well underway of rising yields from the 131 yield low. i think the reasoneniing to monitorlith the issues of europe and european banks makes perfect since. stabilization as we've learned since the crisis doesn't really do much. because the reform never occurs. you go through the bouts of stabilization. our equity markets in the final

analysis now matter how counterintuitive are going to see much higher prices at some point. this is like tina on steroids. where is it going to go? everything in europe has aa annast risk. >> we were talking about the dividend payers and yields search that everybody is on right now. are you playing that game right now or is it too much of a crowded trade here for you? >> it's a crowded trade. i'm concerned most about the quarter second quarter earnings which we're getting ready to go into right now. and for the fifth consecutive quarter we've seen decline in earnings. projected right now to be down 5%. for the sixth consecutive quarter we've had revenue decline. i think the second quarter is going to be really tough. i'm sitting on the sidelines

waiting for opportunities. as you mentioned at the top of this session, there are great tech companies that have some great yields. there still is growth opportunities there. that's one of the groups i'd be looking to buy. >> all right. very good, folks, thank you all for your thoughts today on today's market action. we have a market flash. what do you have? >> this is a story surrounding chemours and du pont. dupont has lost a third case involving teflon toxin and has been found liable because of a man's testicular cancer. the man sued du pont but chemours a spinoff of dupont will bear the cost. they found dupont responsible for negligence, cnbc is reaching out to chemours and dupont. in terms of price action shares,

we're down as much as 17%. they've come off the lows but dupont trading lower. we'll keep you updated. >> there is dupont it's down 2% as people continue to pile through what this means. thank you. keeping an eye on markets broadly here with 45 minutes to go. the dow is up 73 points. 74 the s&p up nine. the transport down ten points today. the nasdaq is up 32. >> tesla ceo elon musk said the fatal crash involving the company's autopilot feature is in his words not material to the value of tesla. this has raised questions whether musk is overstepping his bounds. the experts will weigh in on that coming up next here. ahead, the last decade is being called a lost one for the nation's top 1%. our wealth editor has data he says backs it up. you're watching cnbc first in business worldwide.

hi baby! hi daddy! gain the freedom to fumble with the new water and shatter- resistant samsung galaxy s7 active. buy one now and get the samsung gear s2 for free. exclusively at at&t

welcome back, airline news, american airlines and

continental has been moved to out perform citing concerns over european travel and the company's cash flow. the firm is cutting united rating to neutral. netflix is having a winning streak. it has been down graded to under perform. it was slashed from $80 to $120. the trajectory for netflix may turn out to be flatter. tesla ceo elon musk reacting to news he did not report a accident involving the autopilot because he did not feel it was material to shareholders. this prompted a heated twitter exchange. murray tweeted seems pretty material to me with a link to a

fortune article. musk responded it was material to you it wasn't material to tesla as shown by the market. >> is elon musk over stepping his bounds here as a corporate representative of tesla? we have our panel to weigh in. phil, you actually have news on tesla right now. what do you have? >> this is an update, this is a statement from the national highway traffic safety administration. it's collecting information from the pennsylvania state police as well as tesla and the driver of a model x who was involved in a crash on the pennsylvania turnpike last friday. his model x was going down the turnpike, it hit one barrier and then it went across the medium flipped over on to its roof. he was not injured nor was the passenger in the vehicle. he told the state patrol this was in autopilot when the

accident happened. the national highway safety administration says it's collecting information on that accident. looking into whether or not the automated functions were in use at the time of the crash. so that just came out from washington. we should point out that we've reached out to tesla and they tell us that their information is that the autopilot was not engaged when the accident happened. however they also point out they haven't had a chance to debrief the owner of the vehicle. remember, bill, these guys get information back from their vehicles on a pretty regular basis. they quickly should be able to tell if the -- certain functions were taking place inside a vehicle. >> paul, you know, just looking at the sequence here that seems to be part of what's at issue. tesla, it took fully about two months for the disclosure of the fatal accident that happened. in the meantime they were able to sell stock. in your opinion, is this

disclosure about accidents involving the autopilot feature material for tesla? >> i mean, i think it's material. i don't see how you can say it's not. whether it's material or not, in terms of responsible behavior, it's definitely wrong. i mean, the bar is not very high in terms of this industry. and its behavior in the past, and i think he had an opportunity to achieve his goal of becoming a different kind of autocompany, one that was more sustainable. and for this kind of behavior, following on the solar city problems a few weeks ago, i think you have to question whether this is responsible behavior by him or not. >> well, okay. i'm not here to defend him or prosecute him at the same time. he is defending his company. so do you fault him for that, or just the fact they took this amount of time to reveal the crash occurred, especially when you consider the timing involved with that stock sale they had pending at the same time?

is that what you're faulting him on? >> yeah. i mean, obviously, you'd have to defend your company. but taking eight weeks before you come out with this information publicly and selling stock in the meantime, i think he's skirting around the edges of what is responsible corporate governance, worse than that, i mean, the response to this with carol lumis, it doesn't pass the laugh test in terms of responsible behavior. >> in the meantime, there have been more executive deparchiers, a vp of products and vehicle production and manufacturing, this as was pointed out brings to eight the number of executives who have left this year. he also said talking about the high number of departures, the last high profile company we saw with large senior executive departures was valiant. >> what a comparison there. we should point out they have brought in executives from other

established automakers, they brought somebody in from audi, a couple other european automakers who are taking high profile positions. so tesla's response would be, look, this is part of growing as a company. some executives are going to leave. we're going to bring in talented people in response to that. so it's hard to say until you get a real good understanding quarter by quarter as they're making their deliveries whether or not they're hitting targets or not and whether they can keep up the next two years, really how hard to know how much the brain drain if you will versus talent coming in how much it's impacting the company. >> let me ask you this as well, is this the kind of behavior that you're disagreeing with on the part of elon musk the kind that should get the sec's attention, do you think? >> i think, you know, whether it gets the sec's attention is up for grabs. it has grabbed the attention of the media and the public.

and that inevitably leads to other things. i think they're hiring from audi and other companies is like the blind leading the blind. they've got to come out with someone better than that to try to stem the loss of responsible behavior that is in people's eyes right now. it's very disconcerting. >> we have to go, but one of the points musk made is we don't report deaths of other manufacturers nearly in the same way as we do with tesla. is it warranted here for there to be more scrutiny and more media attention on these deaths, especially because they involve this new feature, the autopilot? >> yes, because it involves autopilot. i want to say, yes, when you have a feature like autopilot that is so intertwined with the brand and with the allure of these vehicles, certainly the first fatality that may have been linked with autopilot warrants that attention. do we cover every fatality with every automaker? i've been covering this industry

for 16 years, certainly we don't. if there's something that's huge in a general area, go back to the ignition switch, we cover that extensively. autopilot for better or worse if you love or hate tesla is one of those features that it's cutting edge technology, it warrants the coverage that's out there right now. >> we got to go at this point. thank you. phil good to see you. paul thanks for joining us today. appreciate it very much. >> thank you. we've got 35 minutes left in the trading session. here the dow had been down 127 at the bottom this morning. but now up 50 as we head towards the close. you may not believe this, but the 1% has lost some of its mojo over the last decade. our wealth editor robert frank has new data you've got to hear, stay with us.

this may come as a shock to some people. but our wealth editor robert frank has new data showing the 1% is in the midst of a lost decade or had one i guess. >> i got to hear this. robert joins us now from cnbc headquarters. >> in this political season we hear candidates and pundits talk about record levels and rising levels of inequality between the 1% and the rest. the new data shows it's not true. an analysis of irs data from the

economics professor at the university of california berkeley who is considered the leading expert in income data. found income inequality was low lower 2007. it's 13% below its all time peak in 2007. now incomes for the broader u.s. population are also down from their peak but they have regained more ground than the 1%. they're down only 7% from their peak. the 1% also has a lower share of national income than they once did. they control 22% in 2015, that's down from 23.5% in 2007. now no one should feel sorry for the 1%, they still earn more than 20 times the broader population. and the rich have gotten richer since the crisis. over the decade, the 1% and inequality we are below that

peak of 2007. guys? >> robert. does this square with the recent news that the affluent sort of upper income had gotten larger, had expanded and had even made inroads? is that what's happening here? >> are we talking about a timeframe difference here? you're talking about a decade, but the data i think you're talking about is a much longer time period? >> that's exactly right. so a lot of the discussion recently focuses on post 2009 where, indeed, the wealthy whether it's the 10% affluent or 1% rich, have made up more ground at a faster rate than the rest of the population, they lost more, the rich lost more during the crisis. so if you go back ten years, to bill's point, the wealthy are below the rest of the population in terms of gaining ground. in the past seven years since the crisis, the wealthy have gained at a faster rate. it's absolutely critical what time period you're talking about. i like to look at the broad urcuer context this is not a record for inequality and we're below the

2007 later. 2007, people were not talking much about inequality, even though it was at a higher level than today. >> very quickly, does this trend continue, or is that period over now? >> it all depends on what happens with stock markets, the wealth of the 1% is entirely dependent on what happens with the dow and the s&p. and we will just see where that goes. i guess we remain fairly flat at least this year. >> thank you very much. i hear the vilolins playing rigt now. >> does this mean the jegenie coefficient has gotten better? time now for a cnbc news update. come in here, please. here's what's happening at this hour. the death of a navy s.e.a.l. trainee has been ruled a homicide. 21-year-old james lovelace was

repeatedly dunked underwater during basic training. the cause of death was drown ing with a contributing heart problem. the justice department opening a civil rights investigation into the shooting of a black mile while officers wrestled him the ground. the two officers had him pinned after someone yelled he's got a gun. hillary clinton blasting donald trump's business record done a speech in front of a one time trump casino saying he took advantage of investors workers and contractors. >> he doesn't default and go bankrupt as a last resort. he does it over and over again on purpose. even though he knows he will leave others empty handed, while he keeps the plane, the helicopter, the penthouse.

>> verizon is hiking prices on its cell phone plans, the new rates come with changes that might save you money. if you switch plans to get new benefits prices will increase by $5 to $10 a month. you'll get more data. got that? the new rates start tomorrow. so be careful out there. that's the news update this hour. back to you guys. >> i'm not pick on verizon i'll pick on all of them. the way they price it is ridiculous. >> remember the text message when it was $0.10. data is the new thing. >> the charges for what we use and call it day. >> everybody uses their cell phone device and other devices for data. they know that. >> let's see what t mo's next move is. >> john ledger we're waiting for you, buddy. >> thank you. less than 30 minutes, here we go into the last half hour of trading. the dow up 44 points. a leading trader will tell us

what he's watching. we're going to go like to sun valley idea where the leading media moguls have been gathering for the annual conference. why investing in utility stocks could be hazardous to your portfolio, stay tuned. wow, that was random. random? no. it's all about understanding patterns. like the mail guy at 3:12pm every day or jerry getting dumped every third tuesday. jerry: every third tuesday. we have pattern recognition technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. td ameritrade.

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.

25 minutes left with the dow up 50 points. joining me on the floor of the new york stock exchange is timmandetim anders, you have people who are heading for the hills in gold and treasuries. you also have the stock market flirting with 1200 on the s&p here. which way are you going right now? >> you know, i think some of the shorter term traders that got into gold a week and a half ago might be taking some profits. and in terms of the market, it -- we're having a really good move off the lows from 90 minutes into the day. the breadth has gradually improved. up volume is twice down volume. it's not quite as much near panic on the european banks after a couple of comments on how italy might be able to recapitalize some of their banks. i think it shows if we could eliminate a couple of spots of fear in the market and define

what the parameters might be, for everything that has to take place for brexit to fall into place, that -- >> whatever that means. >> whatever that means. >> we're still trying to figure it out. >> exactly. the markets are in pretty good shape. going into earnings maybe hopeful we'll break the streak of down turns and earnings. >> do you think about taking profits as we approach the close here? >> you always want to buy low and sell high. that's easy to say. and the moves we've had in the last hour, the last few days, haven't necessarily carried through the following morning. sometimes the last hour indicator is a great precursor for the next day. with so much potential news overnight, you can't really count on that in this environment. >> very good thanks, good to see you. the story of a sexual

harassment charge levelled at fox news roger ales. the drama continues to captivate. julia joins us with the latest. >> reporter: we reached out to fox news for comment on the sexual harassment suit. no word back and no comment from parent company 21st century fox. gretchen carlson alleges she was fired by roger ailes because she rebuffed him because she tried to challenge unequal treatment by some of her male colleagues. roger ailes bosses are both here in sun valley. the other big drama here the redstone legal saga, no one has spotted viacom's ceo. there's a rumor circulator that something came up and he won't make the conference. viacom tells me he's scheduled

to come. they won't say when he plans to arrive. otherwise the moguls are pretty much all here. moments ago at lunch disney's ceo was having a long conversation with apple's tim cook and eddie q. that doesn't mean a deal is brewing. the mood here is pretty much a beat cbs. there was one word to describe the up front ad sales. >> fabulous. fabulous. you saw the report, they're actually true. double digit price increases, close to 5% volume increases, very happy. >> reporter: redstone wouldn't come -- moonves wouldn't comment. he seems to be staying close to sherry redstone. this morning, the canadian prime minister trudeau sat down in a fireside chat.

there was a panel on the future of cities, including google's driverless cars guru. everyone is out enjoying the weather this afternoon. back over to you. >> yes. we all -- we heard every word you said but we can't get over how beautiful it looks out there in sun valley, idaho. julia thanks very much. see you later. it's not a painting, i'm telling you. 20 minutes left in the trading session. investors have been flocking to utilities. we have somebody who says the traditional safety play could be more dangerous than it appears. years ago the hit film love story had the tagline means never having to say you're sorry. but, now chipoitle has its own film called love story. we'll tell you its message coming up. >> really?

so with interest rates still so low investors as we all know have been searching for yield and they've been buying utility stocks by the boatload. our next guest says buyer beware. >> joining us is ken brown, wall street journal columnist. and you made one point that all utilities are not the same.

let's begin with the fact most investors don't care. >> utilities yield 3.3% which look pretty good compared to treasuries. and everyone has been buying, the sector is up 20% this year. >> second best performer, last year it was the best performer. >> right. >> are they making a mistake by buying? >> i think so. things are really good in the industry right now. partially because rates are so low. also because the shares are up so much. the cost of capital is down. it's all about regulation and what the regulatorers let them charge. the borrowing costs have gone down. the fees they're allowed to charge the customers haven't gone down as well. the spread makes it a good time to be a utility. that's not going to last forever. >> price has a lot to do with what happens from here. they could be great businesses with great yields. if they get stupidly expensive, what do we expect to have? >> right. so people -- it's interesting, so in some ways people have thought these things are like

bonds, right? but these are volatile. last summer, in two weeks the sector fell 11%. that's three years' worth of yield wiped out there. you're getting your dirvidends but there's volatility. last year investors pulled $5 billion out of mutual funds. people haven't played the sector so well. you know, it's part of this whole chase for yield. >> kelly's probably tired of hearing my pound the table for you. but i'm always -- go back to all the money managers who sit where you're sitting who say i wouldn't touch utilities they're boring i can get a yield better someplace else. yet somebody's obviously buying them. they're not operating in a vacuum because of the environment we're in with negative rates overseas, and all the other problems that people foresee the utilities seem to be a safer -- not completely safe but a safer place to go. so as long as those conditions continue, isn't that the place to go then? >> well, so all this stuff is good. this is the fundamentals for the

industry are really good right now. they won't continue. so there is another thing weighing in on these guys which is alternative internal is coming in in electricity in a big way. 13% of american electricity is generated by alternative energy. every time a wind farm goes in they need less capacity. companies are shut down plants that cost a lot. those are losses. that mostly goes to the shareholders, this will accelerate. the fundamentals are weakening already. you're not seeing them. >> the one argument for utilities it's a munonalonopoly. there is utilities in texas where, again, they can't do anything with this extra power and people are pealipeeling off.

>> 5% and above -- not just utilities but overall -- that's when kwyou start getting nervou about the dividend itself. is there a yield at which you'd get nervous? >> how much money these guys are giving to shareholders out of the cash it generates, when it gets high you get worried. you see 5% yield in stocks and they often -- it's just a sign that the dividend is going to be cut at some point. the utilities are not raising their rates. it's a healthy industry now. valuations are at record. you've had two great years, things are fraying around the edges. and the regulators are going to catch up to the low interest rate environment. those are the things i try to look at and raise for investors. >> don't want to hear it, they just show me the money. thank you so much. ken brown with the we s. we came up with significant negatives this morning to finish with the down in positive

territory. the nas d >> investors should give consideration to private equity, we'll get the take on the market and going private. coming up next. from over 30 billion connected devices. just 30 billion? a bold group of researchers and computer scientists in silicon valley, had a breakthrough they called... the machine. it changed computing forever. and it's been part of every new technology for the last 250 years. everything? everything! this year, hewlett packard enterprise will preview the machine and accelerate the future. see star trek beyond.

little less than ten minutes left with the dow up 59 points. the market on close orders, they paired off. there's no imbalance to the buy or sell side which has happened a lot recently here. joining us is michael sonnenfeld. he's a member of a high wealth individuals -- what do you do pool their money and invest it? >> these are the top entrepreneurs from across america we meet every month in a peer to peer learning session to learn how to deal with the markets, family, fill antropy children, takes place in 30 locations across the country. >> i would love to be a fly on the wall. i guess we should talk about

britain's vote to leave the e.u. which you think it's a big opportunity? >> it's a change. the question is is this ice cracking on the breakup of the e.u. britain is only 3% of the global economy, so in itself, the brexit vote isn't that important. and maybe many of the people didn't even know what they were voting for. but if it's the beginning of an anti-globalization trend that could have an effect. >> you find private equity more attractive? >> we track our members' portfolios over a ten year period. over ten years the greatest shift is private equity and part is managers are marnagers of debt. the other thing is in a low interest negative interest rate environment, if you're standing still you're going backwards. so taking risk is a really critical function and that's what our members are working

together to manage risks prudently. also saying with a lot of cash both for security and to pounce on opportunities when they're available. >> i see here you guys are expanding to london. more cuompelling more than ever? >> i think it is because our process helps peers learn from one another. in periods of change having access to other bright successful people. everyone in our groups has created extraordinary successes in their business. and they have to be able to learn and teach one another and when you do that in a confidential environment you can get insight you wouldn't get anywhere else. >> do you identify sectors you find the most -- provides the most opportunity here? >> right now, one way to think about it is the best managers of the risk and debt would be real estate and the publicly traded

private equity firms, blackstone, apollo, but our members are looking more for things they can roll up their shirt leaves and actually get their hands dirty with. that's why private equity has grown even though public equity has come down a little. and hedge funds have come down a lot. too complicated and nobody really understands them. not great performance. >> by the way, yeah. michael good to see you. thanks for joining us. we will take break with the dow up 57 points and holding. we'll have the closing countdown in just a moment. >> after the bell, warren buffet said investing in gold is a play in fear. we'll see what's behind the run. you're watching cnbc first in business, world wide.

welcome back to closing bell. we have a news alert on dupont and chemours, cnbc has confirm that dupont has lost a third case over the teflon toxin has been found liable for a man's testicular cancer linked to the chemical that was being leaked into the west virginia and ohio waters, chemours now down as much as 21%. dupont down about 1.75% of a%.

now back to you. >> thank you very much. we've got a little over two minutes left in the trading session. starting to see the market rising and dow up 86 points. i want to highlight the yield on the ten year at a record low this morning, bob, now i saw 134 at the low. i heard santelli mention 131. the point is it came off of that pretty smartly. we're at 137 right now. the dow, dug a hole for itself first thing this morning, down 127 at the low. it also came back in part on that strong ism number we had this morning. some comments from one of the finance officials in europe about the banking crisis in italy and the dow is finishing with a gain of 80 points. >> you'll notice when the ten year came off its lows the dow came off. remember when oil smacked around the stock market, now the ten year smacked around the stock market. >> what didn't go higher was the

transports. people have been watching that carefully. the transports have not acted well recently but it came back, we're down just about four minutes. one more thing, gold, that has just continued to perform very well here for the investors. >> gld yesterday had the third highest inflows of money in its entire history yesterday. >> wow? >> essentially, assets under management, for the gold etf up 60% since the start of the year. new high in gold here. another 52 week high. >> you have a new acronym. >> remember fang, of course. >> brick, fang. >> all those, we've got a new one out there, the desks have been floating around this is not my invention, it's called stub. staples, telecomes, utilities and bonds. it's expressing the safety play. of course the minute you get a name for it that's the top. sell that trade, you get a top four, appropriately, telecomes

were on the down side. up 74 at the close. chris brody is ringing the bell at stock market. integ ra life sciences. stay tuned for the second hour of closing bell. see you tomorrow, kel. thank you guys, welcome to the closing bell, everybody i'm kelly evans, we're going out with a gain on wall street. today it didn't start out that way with the dow adding 78 points on the bell there. a gain of .5%. puts it back at 17,900. s&p adding 11 points. closed below the 2,100 mark. nasdaq. 4859, the closing level there. transports still weaker on the session. the small caps were up, oil recovered a bit, too. coming up it's a fight between

dock and locks. now that the panama canal is wider, west coast ports are working to keep competition from east coast ports at bay. jane wells will have more on that story later. today's panel we have mike s santoli, carol roth is here. for more of today's action, mike grasso will join us shortly. i like that acronym. you think stubs is going to catch on? >> maybe and only in an ironic sense. last year, with when we had fang people thought that would work. when you get an acronym you get a peak. fang worked really well after the coinage of fang. i don't think you can be too precise. i would point out that stocks including those yield stocks are really being wagged by the other asset classes, it's a matter of a call on the bond market itself

and to a lesser degree currencies. >> how about them bonds, carol? i mean, holy cow. we're sitting here in extraordinary times to see these where they are. >> it's strohistoric times. we have taken tina to a whole other level. at one point we were the skinniest kid at fat camp. now we need to lose ten pounds and we have wandered into the obesity clinic. you've got equities a stone's throw away from all time highs, it goes to show what's going on in a global market and how much demand there is for anything. it doesn't fundamentally make sense any other way. >> the interesting thing about that is it worked for a time after the financial crisis, stock and bond prices were rising together. this feels very different. >> it works for the entire decade of the 80s and 90s. only in the last post 2000

environment where strong treasury bond prices meant typically risk often and bad for stocks. you're right, it does feel different. it feels entirely garagirudging the part of investors. it's bear market leadership in the stock market where you talk about those yield sectors, also i feel what's interesting you had a one day pull back yesterday. all of a sudden the familiar things we reach for to worry about were front and center again. that shows there's an instinct toward anxiety as opposed to embrace of what the market can do. >> a couple of factors to go back to. if you're wondering i turned into the opening bell what turned things around. some traders were pointing out there was discussion out of europe about maybe italy will stop the bank and depositors and creditors won't be bailed in. there was also the services report. 56 and a half. even the manufacturing which is sensitive to the stock market rebounded. maybe june wasn't such a bad

month. if that's true for the economy how do you square the low bond yield? >> one month does not a trend make. we've seen this over and over again. i think that's why with you're putting the fed back into play we're not going to see them in play. you need to see not just one good month but you need to see several months in a row that support that trend. weave be we've been all over the place. you look at what's going on with the bond market, gold, you look at the statements that's coming out of the fed itself. you're not feeling so great about the economy. again, better than anywhere else. >> steve grasso is here off the floor. what stands out to you about the extraordinary moves here? >> well, i think if you look at it today, you nailed it. it was the european effect. you saw the dollar, increasing in value today. it ran up to a certain level that was involved with brexit. and then we backed off. immediately we backed off, what happened the market rallied. all based on what kelly was talking about. you look at the european woes,

and carol, when you talk about the fed, the fed is more concerned with europe than they are with the united states right now. so it really doesn't matter what we think earnings are going to be here. it could keep us here. if earnings are a little bit shaky, the whole market falls off, it doesn't matter if earnings are okay here we could probably go sideways, lower, up in that range bound motion. for now, it's all europe, all the time. >> i mean, that makes some sense, mike, but it's kind of like, you know f it's going to be some sort of global cataclysm fine. we all mead need to pay attenti. it's kind of been moving in place, and so, you know, you come back to u.s. economy, things look okay, i mean, it's a conundr conundrum. >> it is. the dollar is interesting because it's been in a range if you look at the dollar index. massive moves against separate currencies, the yen is rallying hard. the euro is sitting where it is. sterling is crashing. and it nets out into we have a range bound dollar. that can be okay. the indicators that equity folks

look at, everything looks kind of okay. and it's all the macro stuff the tress stress is else where. >> if you look at gdp, you could pull out a data point you want and everyone could pitch their own data point. when you look at gdp we're not exactly in a growth growing environment. >> two seven in the quarter that just ended. >> if you deflated you pull out consumer prices -- >> then it's real -- >> if you look at a global growth environment i'm not sure we're in the environment where you should be growing above a 3%. >> how do we know -- this is going to be a key one. how do we know if there is a bubble and let's call it stub. what's the b? >> bonds. >> thank you. the obvious one. i'm thinking what sector of the s&p 500 starts with a b.

bonds being the obvious one, how do we know? >> here's -- i'll toss that question back to you. how could you know when this is a different environment than we've ever experienced before. for what i've been looking at, every time you thought utilities should pull back or dollars should rally off the december fed rate hike, it didn't. the reverse of all that happened. when you look through that prism, what's really overvalued? what's the right pe? are we talking about multiple expansion when you look at staples and utilities? i think that's probably the debate. >> i think one of the things to look for is everybody rationalizing the move and saying this is the way it must be and it will continue only in this direction. we might be at the beginnings of that. what we don't have that most bubbles have is a true greed story. people saying i want to buy treasury bonds at 1.35% because that's the road to riches. >> brexit turmoil is forcing

managers to halt withdrawals where people were trying to get out after that vote. welcome to post nine. it's not just one fund or two funds that are doing this, it's several. >> it's actually half a dozen at this point. investors demanding money back from major uk real estate funds. today there were three more that announced they were bars investors from getting that back. the funds hold large commercial real estate properties around britain that are difficult to sell under market duress. under normal times it can take months or even a year. without selling the assets they lack enough cash to return. how long it will last? not clear. a 2.9 billion pound fund getting this effect going it will review the policy every 28 days

relaxing it when it becomes practically possible. 3.9 billion pound property fund run by henderson global investors gamed excessive pressures for its decision. and british real estate stocks have taken a beating in recent days. in london, market watchers are are scrambling, discussion has turned to the banking sector and whether or not major lenders can weather future defaults on property. in a press conference yesterday, bank of england leader mark carney says mismatches between tough to sell assets had long been a concern. the question is how far is this going to go, are there systemic controls to keep it from getting pretty bad. >> the liit seems issue when yo

an underlying asset is real property. >> it's in the prospectus. >> it's interesting because it's like you could make the argument that nothing has happen it's just everyone is worried. >> i was going to say the same thing. i think long term those investors will be so thankful they didn't panic and pull out. at the end of the day, the uk is not going away here. they were very strong before they entered the e.u. they don't have to unwind any currency, they have to redo trade deals. the likelihood is they're probably a bunch of countries that will have to redo that. if you're placing your bets do you really think the uk is going to collapse after this? you know i'm saying no on this one. >> there was a recent survey done in the alternative asset data tracker they talked to

hedge funds in the uk. 7% said they were likely to leave london, the figures were higher on the private equity side. the question is, are people going to leave london as kind of the center point of business in the european continent, now that they're not part of the e.u.? i think that's what's lingering over the real estate market. the other thing is that you and i were talking about earlier, third avenue management, of course, gating a fund in the u.s. in december after junk bonds fell and became difficult to sell in those market conditions. i checked up on what was happening with them, we haven't heard a lot since then. they're still unwinding it. they said we're still working on unwinding the positions. they're trying to maintain cash payments to investors on a quarterly basis. we're seven months since that happened and they're still in the process. those are not multibillion dollar structures. >> we'll give you the last word, steve. if you had to pick between uk real estate and utility, i don't

know. >> the easy bet i'll go with utilities. but the point is, for every fund that's going to leave the uk there will be another corporation that wants to step up. that's the way markets work. it might not be tomorrow but eventually the markets will stabilize. >> i'm planning my vacation. >> uk, top dollar? >> the pound was 1:$1.75 when i was in college. i couldn't afford to buy a keyshane. more with steve grasso coming up next hour. >> they'll be sitting down with the head of wells fargo, who says the running gold is done and the yellow metal is about to retest new lows. quite the contrarrian call and that's at 5:00. the ten year treasury falling to hover around record lows. that's leading to a boom in refinancing. will it light a fire under home sales coming up. ubs says the run in gold is just beginning, we'll debate whether now is the time to bet

on bullion. you're watching cnbc first in business worldwide.

welcome back. britain voted to leave the e.u. and the market fluctuations has

prompted a demand in gold. he traded the first gold contract in 1974, he's here with the founder of option sellers.com and is our bear. we're up against a formidable opponent here, james, we'll start with you and why you don't like gold here. >> well, we think that gold right now is acting like a currency. certainly the landscape for gold is very bullish. we have uncertainty abound. the brexit, negative interest rates. we have practically everyone right now all around the globe searching for a return. and with gold's recent climb, investors are pouring into the long side at record levels. eventually and we think later this year, gold will return to its historic value and that is a measure of inflation. and once it hits the lows and we

think we're close to that. inflation, of course, we expect to see very little if any later this year as many commodities around the world are overpriced and overproduces and without demand from china, we see the commodity research bureau if you will the measure of inflation probably inching down. and the measure of inflation will probably be low. >> george, why do you like gold, especially on top of a 28% run year to date? >> it's been more than just a 28% run for a lot of people. especially if they lived in greece, or if they live in the uk, or in venezuela or more to speak to today, after the brexit vote, people have first begun to realize that even a stable major currency like the british pound can make new lows trading down up to 31 year lows at below $1.29.

so i think gold has been a wonderful hedge against not just inflation but deflation, for 5,000 years. now, yes, gold is down from $1,900 and it went down to $1,100. now we've had a 28% rally and people who have decided to invest in gold are now adding to gold positions. and i think this may continue as we see other currencies begin to show investors why they need the gold. as far as options are concerned, i have to tell you, that many, many years ago i used to do conversions, we would change straddles into puts and calls for six months and ten days. i'm familiar and i think it's a great idea. >> carol? >> i'm wondering in terms of your prediction of a continued run, where do you think that demand is coming from? is it the european investors, is

it american investors who are just looking to hedge worldwide portfol portfolios, is it asia what do you think is going to be the driver of the growth? >> it's coming from all over. it is coming from the uk. and, yes, gold is a major, major import and trading item in the uk. and then, of course, it's coming from the continent. it started coming from italy, it started coming from greece. it started coming from spain. i was in spain just three weeks ago. and chatting with people and i believe that they are very interested in gold, portugal has been interested in gold. now i believe that china has become evermore interested in gold. >> okay. >> i think you'll see it from a global perspective very shortly. >> mike? >> james, i guess i would ask, is this the time tactically speaking to fight the rally in gold given the fact you basically have all the reasons

that people variously want to buy gold, which is sort of political uncertainty, the instability of currencies and all the rest of it seemingly working in its favor, or is that the reason to say that bull markets peak on good news? >> i think bull markets do peak on good news. what's interesting your other guest makes perfect points and they're all correct. everyone's been buying this market. europeans, chinese and americans, you know, searching for a return. later this year, we think commodities and prices of commodities and inflation are going to be down and that's when gold is going to return being a commodity instead of the currency it is right now. it's an extremely crowded trade right now. and we think that $1,200 to $1,250 is probably a year end value for gold after a lot of investors see it's a tired market. it's not right now. environment looks bullish. we would say start going the other way in the next month or so. >> all right. gentlemen thank you both.

chipotle shares down since the e. coli outbreak. they've got a new rewards program and a new cartoon taking aim at rivals, that's coming up. jane wells explains why the newly expanded panama canal is increasing a trade war between ports on the east and west coast. stay tuned.

welcome back. we start with the market flash. western digital, the company raising it's fourth quarter guidance. they expect their revenue to be $3.46 billion. earnings adjusted of $0.72 compared with the earlier forecast range of $0.65 to $0.70. the guidance reflects sandisk ownership. the company making a change to leadership, mark long appointed evp, he will succeed the current cfo on september first. the stock is trading higher on this news by 4.6%. year to date, the stock is lower, back over to you, kelly. >> thank you. moving on, donald trump has made fighting unfair trade deals a major selling point of his presidential candidacy. one may be the biggest under the trade battle is happening here.

jane wells has more on the coast to coast battle. >> it's like the trade version of east coast versus west coast rap. how do you compete in the face of this expanded panama canal? you've got to spend money to make money. behind me is a $2 billion new terminal partially completed at the port of long beach. they're spending money next door at the port of la where some terminals use robotic machines to move cargo. truck wait times have declined. they are carrying 13,000 standard containers, double the old limit, the new terminal in long beach can handle ships with 24,000 containers, those ships haven't been designed yet. >> more than 50% of all the ships on order being delivered this decade in the next few years are bigger than 14,000.

so that means that none of those ships that are being delivered into service will be able to go through the panama canal. >> reporter: he says the west coast will lose a market share. the biggest loser to the new panama canal is the suez canal. the terminal is electric. and clean energy is here, the ships come in and plug in. those are really big plugs. >> it's interesting, i guess progress is incremental. east coast can accept bigger ships great. they have to raise the bridge if they want to get it into newark. >> into a country that hasn't had a big appetite for think big projects, you wonder. it's healthy you have this competition at all. >> when i think about the west coast ports i think about the shutdown that happened about a little over a year ago. and from my perspective, you know -- actually jane i'll throw

this to you. what role is that going to play in terms of perhaps some of the smaller companies entrepreneurs, small businesses that maybe use the west coast port, lot a lst business during the shutdown and said maybe i'll try the east coast. >> reporter: it depends on where the in market is how long they want it to get there. it will be slow going literally on a slow boat. it may cost less. they think they have the labor situation under control for the next several years. the labor unions have signed on to the automation. that is not going to be an issue for the next few years. >> so they say. >> until it is. >> amazing story about the panama railroad that was built in 1855. the things people had to go through to lay the track for what would become the canal, and now to get the ships through, to your point, i don't think they can get the biggest of these

ships through today? >> reporter: they can not. it's easier to dredge in open water than to dig a canal through the middle of two continents. they do have that advantage. >> come on, ports you got to keep up. if they can do it, we can figure out a way. it's not like borrowing rates are all that high these days. jane, thank you. great stuff. our jane wells there on the east coast west coast port battle. time for a cnbc news update. here's what's happening, senator bob corker withdrawing his name to be donald trump's vice presidential running mate. he said the best person for the job would be trump's daughter ivan ivanka. long time fox news host gretchen carlson has filed a sexual harassment lawsuit against fox news ceo roger ailes, the former co-host of fox and friends was fired on

june 23rd. she alleges the firing was retaliation after she rebuffed ailes' sexual advances. walmart announcing walmart pay is now available in all its stores nationwide. the system allows customers to pay for their items in store by using their smartphones. it's available through the walmart app. and listen up, more than 500,000 hover boards have been recalled nationwide due to the risk of overheating and exploding. at least 99 is incidents of overheated battery packs have been reported, including some with burn injuries and property damage. if you've got one, go on the consumer protection agency website, look at the serial numbers. that's the cnbc news update this hour. back down to you guys. thank you, what was that? you want the website? >> what if you have two. then what do you do. >> you turn them both off, put them back in the closet and found some other way to

entertain yourself. >> we got a couple for the girls. >> are they part of this recall? >> it turns out the models we got are part of the recall. >> was it pricey? i thought it was the cheap ones. >> these are the high end ones. we were these were not the knock offs. >> do you know what doesn't explode? a pony. >> yes. >> a pony doesn't explode. >> pony eats though. roller skates doesn't explode. unlike rivals, verizon is raising not cutting prices. we'll discuss whether verizon has pricing power ja. san francisco has a major homeless crisis on its hands. find out how the city and bay area media are trying to fix the problem. this man creates software, used by this bank, to protect this customer, 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.

by switching to xfinity x1. rio olympic games show me gymnastics. x1 lets you search by sport, watch nbc's highlights and catch every live event on your tv with nbc sports live extra. i'm getting ready. are you? x1 will change the way you experience nbcuniversal's coverage of the rio olympic games. call or go online today to switch to x1. welcome back. at one point the dow was down more than 125 points today. at the close it was up 78. nearly half a percent in closing. the s&p 500 added 11 points closed just below 2,100. the nasdaq was up 36.

according to new data this morning, total applications were up 14% and applications to refinance home loans jumped 21%. joining us is the ceo of century 21 premier elite realty in miami, florida. good to have you with us. we know miami has been you know struggling a little bit maybe coming off the boil a little lately. has there been new life breathed in because of these new rates? >> hi, kelly. how are you? yes, we've had the perfect storm between ten year and 30 year treasury yields at record lows, brexit and slow economic growth has created buying opportunities. and refinance boom. as you know, the refinance applications have been up 21% from a week ago. and over 113.5% from a year ago. >> wow. and where do you think, you

know, is it enough that people are just aware, you know, rates have moved lower again? how much money are they saving? is this going to be a long lasting move do you think? >> well, lenders are quoting 3.25% for 30 year fixed rates for quality borrowers, and what's happening is, because it is a perfect opportunity for homeowners to refinance, they're taking advantage of the extra savings and they're learning from the past mistakes. so instead of using the extra savings to increase their lifestyle what they're doing is they're looking for investment opportunities, all sorts of income producing opportunities, or putting the money in savings for their retirement. they're learning from the past. >> patricia it's carol roth, what about international buyers, obviously we have a lot of countries that have negative interest rates. and a lot of havoc being wreaked around the globe. what are you seeing in your market and also across the u.s.

for that appetite from the international buyer which is obviously, been a really big player in terms of getting the market to where it is currently? >> what we're seeing is even though there's global anxiety, these foreigners from brazil, argentina, venezuela, colombia, canada, france, china, uk, peru and mexico, are looking for a safe haven. they're looking for different reasons, either tax purposes, political purposes, government, security, a good investment. and being that the u.s. still even though with the strong dollar and we have a -- it's still a much safer bet for foreigners. so the foreign buying, especially since brexit, uk has always loved global cities. i'm from miami, south florida, miami, new york, global cities like that, uk has very strong economic ties.

so we're seeing increased interest right now from british buyers, we have over 26,000 residents now in miami. and we probably get as far as visitors, anywhere from 115,000 visitors a year. >> patricia, incredible. we'll see you again to see what more comes of this. it's early days, appreciate your joining us. >> thank you. and for more on these historic low rates and the so-called safety of the bond market, check out my latest piece for the spark. it's at cnbc.com/thespark. verizon isn't scared of competition, the leading wireless carrier is so sure it can retain customers it's about to raise rates. there's nearly 7,000 homeless people living on the streets of san francisco a. one city newspaper is taking a front page stand of the issue. the san francisco chronicle's editor in chief joins us in its fight against homelessness. you're watching cnbc, first in

business worldwide. we call it dark data. 80% is invisible to most businesses. the ibm cloud has tools that can help see dark data and put it to work. hello, my name is watson. working with watson in the ibm cloud, we can help an energy company predict pipeline corrosion. and help a start-up to use social data to predict market trends. now businesses can get more out of their data. that's what the ibm cloud is built for. now businesses can get more out of their data. here at the td ameritrade they work all the time. sup jj, working hard? working 24/7 on mobile trader, rated #1 trading app on the app store. it lets you trade stocks, options, futures... even advanced orders. and it offers more charts than a lot of other competitors do on desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivatives pricing model, honey? td ameritrade.

premium like clockwork. month after month. year after year. then one night, you hydroplane into a ditch. yeah... surprise... your insurance company tells you to pay up again. why pay for insurance if you have to pay even more for using it? if you have liberty mutual deductible fund™, you could pay no deductible at all. sign up to immediately lower your deductible by $100. and keep lowering it $100 annually, until it's gone. then continue to earn that $100 every year. there's no limit to how much you can earn and this savings applies to every vehicle on your policy. call to learn more. switch to liberty mutual and you could save up to $509. call liberty mutual for a free quote today at see car insurance in a whole new light. liberty mutual insurance.

we have a news alert on oil. what's happening? >> take a look at the move in oil. it's trending sharply at the most api data showing a large drow down in crude. crude inventories falling. we've seen a $0.35 pop on the recent api data of 2.6%. >> there we go. you know, maybe a bit of a break after some concerns with the oil

space lately. silicon valley may be the hub of innovation, beyond the big ticket venture capital, is the rising population of the homeless. nearly 7,000 people on any given day. the san francisco chronicle is calling for elimination, not just management of the homelessness. joining us is the editor in chief, audrey cooper. this is an extraordinary measure you're taking isn't it? >> it's extraordinary for the chronicle. it's been more than 20 years since we put an editorial on the front page. and definitely in our 151 year history we've never done a full front page editorial. >> describe what's happening day-to-day for people in the city. >> well, i think what most people don't know, san francisco is actually a pretty small city. we have about 850,000 residents. and our homeless population is in the middle of the city where

our tourists come, where people are coming to work every day where they're coming in on public transit. it's an in your face problem. it affects residents here but it is affecting the people who are force today live on the streets in san francisco. this is one of the biggest creators of wealth that the world has ever known in san francisco and we also have a huge problem with our most vulnerable population. >> audrey, it's carol roth, i love your innovative thinking. and in taking this to issue. i guess the question is, how do you turn it from awareness into action? because we've seen so much hashtag activism recently, bring back our girls on down where you bring awareness to an issue and everyone shares the information. and feels like they've done something at the end of the day there aren't solutions. what are you hoping will happen on the solutions front? >> well, the one thing the chronicle did, we organized pretty much every media outlet you could think of in san

francisco to all cover this issue on one day. we're calling it the san francisco homeless project. we had more than 80 news organizations that wrote more than 300 stories, radio sound bites, television spots, interactive graphics for our new media companies. so our idea was really that there couldn't be a day where you wouldn't see a story about the solutions to homelessness on social media. on twitter and in newspapers. on tv. and you know, the idea is we need to be smarter about this public dialogue that so far we're not really having in san francisco. we need to get rid of the emotions that are behind this issue which are significant. and these horrible feelings we all feel stepping over these people on the streets. and we need to get down to having a really smart conversation. and that cannot happen in this country unless people have the information to have the debate. >> you say that there isn't currently a conversation really going on about this.

what is the state of let's say the policy debate about possible solutions here? you know, i've seen analysis that say for the minute amount y san francisco spends on this issue you could hand out a five figure sum to every homeless person, where's the state of the debate in your mind? >> well, and we did that in san francisco a number of years ago. and we stopped doing it. we spend almost a quarter of a million dollars, and that's not including emergency health and police response when anything tragic happens to these people. we're spending a lot of money. we went through the recession, we're trying to rebuild the tech in the city. and that really took a place in the forefront. we sort of become innered to this issue in san francisco. people have thrown up their hands and said what can we possibly do about it. i think, you know, this city,

san francisco has reinvented the world since the gold rush. we invented everything from jeans to the personal computers. we can do a better job of being innovative about how to help our most vulnerable population. >> well said. odd raaudrey thanks for joining. that's audrey cooper of the san francisco chronicle. chipotle's ad new cartoon is that a picture of the journey of chipotle itself? half a million bucks, we'll talk to uber facts chris sanchez how how he turned unimportant information into cold hard cash when we which back. c back. o bac. .

chipotle is unveiling an animated short film. it's third since 2013. it's looking to gain traction since it took a hit. this short film is trying to turn things around and support their summer rewards program. will this get diners back into restaurants? this is called a love story, what do you think is really going on here? >> i think this is incredibly super indulgence. if you're chipotle you need to be thinking about your customers, they don't care about this animated love story, they want to know what's in it for them. they're hoping it's not e. coli. this is not the way to go about it. >> a heritage reminder of -- >> it's not. they've gone astray and they need to come out and say what they've done to fix the problem. you've got this rewards program

which is just for the summer. you'll get people hooked on coming back and train them they'll get a reward and then you'll take it away from them in september. this is a company that needs major, major help. >> i think it's fair to definitely call this a misfire. i think it reflects the fact that chipotle grew pun intended entirely organically. they are not an advertising driven company. they don't have to be out front advertising a brand message all the time and telling people constantly here's what the deal is with chipotle and why you should come to us. there's got to be an adjustment period where they have to meet what their peers are doing which is constantly -- >> i'm looking at this on youtube right now. it has less than 9,000 views. do you know how much money it cost them to make that and it has less than 9,000 views. >> that's a low number. verizon is set to raise monthly prices for its service. is this a new era of pricing

inflation for the telecom industry? >> it's the continuation of an era. verizon is raising prices but also at the same time offering more data per dollar. overall you do have to call it a price increase though. so here are the changes. the cheapest plan is now going to cost five bucks more than it useded to. 35 bucks a month, but now, it comes with two gigabytes, instead of one. the next level package up with five bucks more. it's 50 bucks for four gigabytes instead of three. the three most expensive plans are going to cost ten bucks more than they used to, but you get two, four and six more gigabytes. all those new plans are going to be available on thursday. now, if this sounds familiar, it should. t mobile has long offered similar planned features. doesn't charge as much. i talked to an independent wireless industry analyst about verizon changes. he agreed this is the continuation of a trend that we've seen for a while now. couple of years ago, wireless

carriers were doing more discounting because t emotional was more aggressive about prices. lately, sprint is the only carrier really touting big new discount, but that's because it's in last place and it has to. >> john, verizon is the stall wort here when it comes to its network and everything, but t emotional has lawn fed such an advertising and social media campaign really against the big guys. you know, and they've been the only one to gain subscribers. so, is verizon just betting that the people it has aren't going to blink at paying ten bucks more per month? >> that's part of it. verizon has more than 120 million, those aren't all individual people. some have more than one subscription, but they aren't losing a ton of those people, so they figure they can raise prices and give them more data because people are using twice as much data as they were two or three years ago, so there is

demand for the product. >> you guys hold on? >> i'm wondering from john, if this ends up back into a discount war again because we're obviously in a period where there's not a lot of changing going on. wasn't really that new, exciting, must have device. when those come out in the next cycle, which may be a little bit from now, does this give them the latitude to come back and discount but their discount is back to where we were today. >> i asked that. will the iphone 7 perhaps spark new price wars? he wasn't sure. the thing with price wars, the thing to move the market. one has to decide if they're willing to sacrifice profits in order to try to pick up market share and everybody else tends to follow along. we'll see if that happens with the 7. if that it's that type of device and if anybody is willing to

take the hit. humans share 50% of their dna with bananas and honey bees communication by dancing. none of these sound true, but accord tog tog a twitter account, they are. the kraert of the twitter feed joins us after this. medicare options until 65. now is a good time to get the ball rolling. medicare only covers about eighty percent of part b medical costs. the rest is up to you. that's where aarp medicare supplement insurance plans insured by unitedhealthcare insurance company come in. like all standardized medicare supplement insurance plans, they could help save you in out-of-pocket medical costs. taking informed steps really makes a difference later. that's what it means to go long™. call now and request this free decision guide and explore the range of aarp medicare supplement plans. all plans like these let you choose any doctor or hospital

that accepts medicare patients. these are the only medicare supplement insurance plans endorsed by aarp. call now and request your free decision guide... and start gathering the information you need to help you go long™. & in a world held back by compromise, businesses need the agility to do one thing & another. only at&t has the network, people, and partners

to help companies be... local & global. open & secure. because no one knows & like at&t.

welcome back. if your on twitter, you may be a follower of uber facts which tweets what the creator calls the most unimportant information you'll ever need to know. chris sanchez created the account in 2009 and now, he's making a half a billion dollars a year by running the account across twitter, facebook. it's called cats are capable of mind control, which we all know and 1,000 uber facts you ever needed to know. he's here. thank you for making the trip. >> thank you for inviting me. this is a a crazy place. >> well, it is. trumpet player earlier. but congratulations on all the success. >> thank you. >> most people want to know how are you pull ng a half a million bucks a year? >> it's an interesting business model. i work with publishers who create content and i get paid based on how much web traffic i bring to their website. >> this is not like an

advertisinging platform where companies are coming to you and you're sub tweeting them. you're basically getting paid by partners just to create content? >> yeah, now sometimes we do direct campaigns where if someone has product or movie, we'll get paid per post, but generally, it's based on traffic. >> this is such an entrepreneurial worldwide success story. you're out there, doing something fun. you realize it can be a business. so, what was that tipping point, was it getting some celebrities on board that took you from a certain number of follows to a bigger following. what was the tipping point? >> celebrities from paris hilton to kim kardashian, if you have a business when another company taught me how to build my ties from -- really didn't, it was called chop shop.

i don't believe. but yeah, they were right. they taught me -- a way to influence. choosing galleries that really resognate with my audience and things you didn't know about space or seven facts you won't believe about the human body. >> twitter as a company is getting that word out that essentially, they're a platform? because if the perception is just kind of hands off -- it's a lot harder, oversaturated with the business they have. >> they don't think that's the problem by the way. they wish they had more. there's just so many tweets going out every day. it's a little harder to start doing it now, but it is definitely possible for people to have a good idea. >> we mentioned facebook and

instagram being platforms now. is that where you're getting most of the bang for your buck? >> i have the most engaged following on insta fwram. they're all image, videos. there's more of a personal feel to just tech space, twirt updates, which i used to be -- more images. >> what about snap chat? >> it's hard to do. it happens in moment. typically, my days are not very exciting because i spend about ten hours just looking for content each day. >> that's an uber fact. your days are not very exciting. >> my days are not very exciting. >> we have to go, but how much would you credit the cat feline population for your success? >> i would give them about i don't know, 70%. not ours together. they live separately. >> only have 20 seconds.

chris, thank you for joining us. good luck getting back to toronto. that does it for closing bell. mike, we'll see you tomorrow. have fun with the cats tonight. "fast money" begins now. "fast money" starts right now. live from new york city's times square, i'm melissa lee. your traders on the desk -- tonight on fast, wells fargo making quite the contrarian call saying not only that gold's run is done, but it might be set tig up for a massive plunlg. we're sitting down with the man behind the call. plus, a flashing sell sign. we'll tell you what that is and how you can protect yourself and later, a top adviser told its customers they couldn't sell stocks during the brexit swoon. one regulator says the company did not act in the best interest of its investors. first, we start with the markets. global yields hitting fresh