bacon. cheaper bacon is on the -- >> more bacon for you! >> yum. >> futures down 30%. >> yum bacon. thanks for watching "power lunch." >> and "closing bell" starts right now. have a great weekend, everybody. see you next week. hi and welcome to "the closing bell" to clez out this week. i'll kely evans at the new york stock exchange. >> i'm bill griffeth. hello there. >> hello. been a busy day. >> putting the s&p in record territory. the nasdaq's doing very well today as well. thanks to that stronger than expected july jobs report and coming up we'll tack about what the report says about the economy and whether that makes it more likely that the fed will raise rates sometime this year. >> the old debate. >> there you are. >> bristol-myers plunging today.

it's down about 15%. shares of rival merck rallying since its own cancer drug has a similar trial in june. merck shares up more than 8%. speaking to an analyst of where bristol goes from here. donald trump unveiled the economic team as he tried to refocus on the economy but will this strong jobs report undermine his assertions that the economy is in really bad shape? we're going to hear from one of the members of his team as well as a top clinton economic adviser. coming up. but let's start with the jobs report that had fueled the gains for stocks today. steve liesman looks at the fed's timetable on interest rate hikes and bob pisani with the reaction today. steve, pretty impressive report. >> it is. it's a blowout jobs report and shows the job market in all the important dynamics to be improving. first job growth with broad based. leisure, hospital, services, even some manufacturing and construction. wages up a helly 0.3%. 2.6 year over year.

400,000 americans returning to the workforce. they found jobs. that's why the unemployment rate was unchanged at 4.9%. hours worked were revised higher and the revisions. now, what happens here is that kind of job growth raises the immediate question about whether or not the fed will come into the situation here. september, not showing much at all but december is definitely on the table for some folks especially after this report. a couple of reasons why that's the case. first, september is a little bit too soon. low oil prices weighing on inflation and moving the target lower. second, strong job growth. gdp is substantially weaker than the job growth would suggest and central banks, europe and japan, both negative. fed may have some limit to how far it wants to get from those. >> yeah. i wonder, steve, what happens now. i mean, the dichotomy between the u.s. with stronger jobs and the bank of england which just did all that easing, what

happens, you know, the dollar's up half a point today. what happens if it keeps going in that direction? >> that's a great point, kelly. another factor for the fed to weigh in terms of inflation goals. maybe by september, but it might be a tad early yet, for the feed to feel like the knock-on effect of brexit is already felt. we see mark carney at the bank of england girding for an impact and not shown up in the data. mate yet wash up on the shores through an impact through europe or britain. >> steve, before you go, there have been rumblings throughout the day maybe seasonal adjustments distorted the jobs report to the upside. i already see you shaking your head. so what is your response? >>dy the math on it. let me -- bill, let me ask you a question. did you see anything of the past five months when seasonal adjustments took away 3.1 million jobs? >> well, you know -- >> nobody wrote a thing about it but the people talking about this thing about --

>> exactly. >> by the way, i checked july for last 17 years. this number is 30,000 jobs under the normal adjustment for july. >> you're the economist. i just play one on tv. my question is often, when they start to talk about seasonal adjustments for this report, why didn't they do that in may, as well? >> just like you are, an excellent journalist, why more people subscribers to this nonsense conspiracy theory are not asking tougher questions is always beyond me. it scares me. they have money to invest. >> i just think it's human nature. we are always afraid it's not as good as it seems. >> it is true the nsa -- >> the truth is different. >> the nonseasonal adjusted number is lower hand the seasonally adjusted number and happens every july. >> thank you. we'll let you go. >> a pleasure. >> talking some seasonals. now to bob pisani tracking the market reaction on the floor here. bob? >> this is a broad rally but it

is more than just a jobs report but let's show you where we're at right now. s&p 500 essentially historic highs. nasdaq, essentially historic highs. broader than that, s&p mid cap and s&p small cap are also essentially knocking on did door of historic highs. let's not quibble. this is very, very broad and not surprised. 1% from the highs for a month or so. market is rotating. this is very, very healthy. when's the rotation? simple. tech and bio tech had been very strong recently. why? because the earnings of microsoft have been much better than expected in the tech group and investors are responding to that. had a great month overall. another group is fading. utilities are fading. telecom and consumer staples, the market leaders are fading a little bit. bank stocks today. too early to call it momentum and seeing healthy rotation going on. software, this quarter, microsoft's been a monster and very good example of many

companies in tech that are doing better, dragging the sectors up with them overall. we have an intraday high, nine times in the last month. so remember, we have always been just shy of the new highs. back the you. >> all right. bob, thanks. see you at the closing bell. for the exchange today, we have expanded it because it's an important day. meg green, bill lee, ben willis at post nine and rick santelli checks in from chicago. ben, we have been wondering what was going to get the market out of its doldrums, the narrow range it's been in for a while and took the jobs report: what do you make of the rally? >> it's significant. unfortunately, bob took away all of my talking points. >> well, thank you for joining us, ben. >> the rotation we have been seeing is very important. actually, what i was hoping to see was not such an important jobs number so that the market could go through its natural correction of an overbought. we never really got back to an

area where some of the major money managers trading on a quantitative basis looking for 2130 on the s&p to really get back in but i still believe that the bull market is not over, and continues to go higher. that the idea of natural rates rising is an indication of a healthy market and a reason why you should be buying equities. the fact of the matter the fmoc may not have to raise rates because they're naturally raising rates when you have the bank of england, the bank of australia and others lowering their rates is defacto of raising our rates so keep an eye on when's going on there and in particular the -- how well the bank of china or the pboc is playings in the sand box with adjustments on their currency. >> bill lee, when's the next rate hike, do you think in maybe exactly what ben's saying is why markets are saying they're taking this so well. what say you? >> steve hit it right on the money saying this was a grand slam. more jobs, more hours, more

wages, more participation. janet yellen and the doves looking for reasons not to raise rates and what she is going to focus on saying 60% of the job growth in service sector is in hospitality, health care and administered services. low-paying wages and she's also going to say we're not sure whether the job growth is real growth and mainly inflation. that's the things he is looking for and so far no sign of inflation and saying we need more confirming data, we need to see the whites of their eyes before we move and won't be until easily december or next year and then political uncertainty and not moving in front of that. >> yeah. rick, you know, i was off yesterday so i only read about mark carney lowering rates and how this -- the opinions i saw was that this just takes any fed rate hike off the table for the rest of the year and then getting today's report and suddenly people raise the expectations again. not very high but up again. what do you think is going on in

terms of -- in terms of when's going on in the fed's mind right now. >> oh, i could never answer what's going on in the fed's mind, trust me. but i would say this. >> you know what i mean. >> the curve is started to steepen. long end rates, you know, we closed at 1.45 in 10s last week. even on the day, the long end's now overtaken the short end and initially the most dramatic response after the number. i think perception is reality. investors are as one of the guests said getting aefrg they want. but i wouldn't say it's a strong market. i recognized early thanks to many have e-mailed me tis the seasonality. that's the strength of the number. no matter how you slice it, it was a number that gave confidence that we aren't slipping back into the weak numbers. so i think that explains the equities. i also think it explains interest rates.

because i don't think investors at all believe the fed is going to do anything before the election. now, whether they do something in december or not, we'll have to ponder that but that's a couple of meetings away and i think when it comes to inflation, one guest pointed out, yes, if you pick the only measure that doesn't show it, that's fine. but cpi, year over year core, has been up eight months in a row above 2%. and i think that is at least something to throw into the party mix. i think it's the best of all worlds for investors at this point. they should enjoy it while they can. i don't think the economy is as good as the jobs number on the surface and i also don't think that the economy is all that bad. it could definitely withstand tightening. i think more of the same is in order. >> only bad news for investors, meg, buying things at the prices effectively all-time highs. are you still seeing good values in the stock market? >> you know what? it is not bad values, is it? is it high?

it is. where will you go? dividends in the market. and it is rotating. what steve said before is true. the rotation is really important. and i think if people look, not just as the u.s. market, but let's look worldwide, what have they done in england? lowered the rates. that's their quantitative easing. taking a look globally when's happening, i think you have a lot of opportunity around the world. look at emerging markets. look at emerging debt. they were slammed lastier and this year they're having huge years up 12%, 13% on the sidelines waiting. it is the same thing, i mean, oil tanked. and the mlps are coming back. we always love munis, of course. but staying diversified and allow the managers rotate and not guess the market, there's still a lot of people on the sidelines waiting. and if you wait, you're going to be -- >> like the fed. >> yeah. like the fed. >> they're guessing about the numbers. they're doing exactly what you're telling investors not to do, meg. exactly! think about it. >> i hear you.

i hear you. but what's the option? what will you do? >> got to take -- >> how do you make -- >> that's why god gave us financial planners to give advice the people that need it. >> exactly. >> thank you all. appreciate it. have a good weekend. enjoy the olympics. 50 minutes to go in the session. dow up 173 points today. s&p's up 17. transports up 144. you have heard it. small caps are up. nasdaq up. seeing gains across the board. >> see the vix? one-year low. >> the vix is down. >> big time. a drug company's loss is another's gain. we'll talk about bristol-myers squibb disappointing cancer drug trial and why merck is popping as a result today. as donald trump unveils the economic team ahead of a policy speech in detroit monday, a key member speaks with us along with an informal economic adviser to hillary clinton. there may be some fireworks.

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rally day after the jobs

report. almost 1 on the dow. the s&p up 17. that's in record territory, by the way. and the nasdaq is in record territory right now. isn't it? yes. >> pretty much -- >> by 3 points. up more than 1% right now. >> 5222. bristol-myers stock tumbled as merck rallied. both companies are banking on new cancer treatments in the pioneering area of immuno-therapy. >> this is very interesting. opini optivo is being youzed and trying to see if it's useful for a type of lung cancer and they found it's not. how much of a setback is that? is this just a bump that we should expect on the road to -- in this area or is this a big setback here, do you think? >> yeah. this is a good question. thinking about the outlook for optivo, we think it takes a lie

yn's share of the market but what's important in cancer treatments is first to market and with this data it is very likely that bristol will lag behind merck in being first to file within the front line lung cancer market. i think longer term a lot of combination data works really well for bristol and longer term i think bristol does well and definitely setback over one to two years for bristol. >> what is going on in terms of lung cancer that the drugs trying to treat? what can you tell us about how prevalent it is and how important of an area it is for applications? >> yeah. lung cancer is one of the largest cancers out there. we estimate within the drugs we will see close to $20 billion worth of annual sales of the drugs and huge opportunity. we still think optivo gets the lion's share. some have awful side effects.

these drugs, less effects and for some patients remarkably effective. >> we all read with interest that series of articles in "the new york times" this week about immuno therapy and optivo and the other drug that merck has. were mentioned quite often in there. immuno therapy. the promise is great there and you have the setbacks like with optivo this week. when's that do for the advancement for immuno therapy right now do you think? >> i don't think it does too much. i think it just slows it down a little. bristol instead of a first mover advantage has to compete with some of the other companies in that front line setting more at the same time with their combination assets and i think longer term, they're still a huge potential. i think the one nuance about the study that's important is bristol focusing on patients that had a 5% or greater expression of pdl1 and what this means are patients that should

respond well but you really want very high expression of that and because you're going after only 5% or greater, you know, you reduce the odds of the drugs to work. i think as we look forward, you need combination assets to treat the sorts of folks but i don't think this really change it is outlook for immuno oncology drugs. >> we hope especially coming to lung cancer, you saw the stats there extremely high fatality rate. thank you for being here. >> thank you. holding the levels. the dow up 177 points. so who's plan creates more jobs and put the economy on a more solid economic track? that's next. later, we debate citigroup's call to stay invested in the markets despite a few sell signals cropped up lately, as well.

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we'll see if we can hang on to the gains with markets on intraday all-time highs. the dow up 168. nasdaq up 16. nasdaq up 54. bill, southwest and delta up nearly 3% after it got creamed earlier this week. >> lower today, the utilities. >> finally people have something else that looks attractive.

yields moving up after the strong jobs report. >> exactly. donald trump unveiling the team of economic advisers today and catching some flack for not having women on it and too many hedge fund managers. >> ahead of the planned economic speech scheduled for monday in detroit. but in the meantime, joining us now for more on trump and clinton's economic policies, where they differ, two friends of the show, peter navarro and contributor jared bernstein who's an informal adviser to the clinton campaign. whatever that means. good the see you both. thank you for joining us. it is widely believed, guys, no matter when's elected, we see fiscal stimulus out of washington to take the pressure off of fiscal policy. is it safe to say if it's donald trump it's tax cuts, if it's hillary clinton we are talking more government spending? jared, what do you think? >> well, first of all, informal

adviser means she's one of the people i talk to. i talk to anyone when's willing to talk to us. >> like us. >> like you. like you. an informal adviser to you, too, i guess. yes, when it comes to hillary clinton, really, think about infrastructure investment. i think this is so key to our infrastructure stock. it's key to our productivity, growth, squeezing any remaining slack out of the job market. she is talking about a first 100-day plan, a significant deep dive into infrastructure investment going from roads and bridges to usual stuff all the way to public schools and national grid, wi-fi. very important stuff. >> and you can see it on the screen there. the quote is we can make the boldest investment in good-paying jobs since world war ii. peter, how does trump counter that message? >> what i like about jared is for the last eight years he's

been krcriticizing the obama administration not tackling the trade deficit, the real problem in this country. we got a $800 billion trade deficit which cut our growth rate in half and mr. trump's going to handle that. in terms of infrastructure, this is pure hillary stuff. >> wait a minute. what's he going to do with the trade deficit? >> by cutting good deals. with our trading partners. trump trade doctrine is as follows. we won't trade unless it meets the following principles. increase the growth rate. shrink the deficit. strengthen the manufacturing base. if we do that, we'll be great. double the gdp growth rate. we'll create over a million new jobs a year. we'll generate trillions in tax revenues. and we'll have an economy that works. and it's interesting, bill, with this infrastructure thing, hillary's instincts are do a bunch of government stuff. what donald trump would like to see first and foremost besides

government infrastructure is making sure companies like ford and gm don't go down to mexico and take their business investment down there. we want business investment here. you solve that by dealing with the bad trade rules, things like nafta. >> jared, what about that? should nafta, even hillary clinton has said she'd like to renegotiate nafta. what about that? >> i think the key point there, there's probably some agreement here, is that the trade deals we have been negotiating have a fundamental problem. they don't have workers at their heart. they have corporate interests at their heart. i think, you know, we have heard noises of both candidates about what they'd like to do about that. i was concerned to see the extent of corporate interest on trump's brain trust and i suspect a lot of people wouldn't necessarily want to see workers interests, environmental interests at the heart of the trade agreements. secondly, on infrastructure, i have to disagree with peter for a second here. he says trump wants to invest in

public infrastructure and not government stuff, and government spending. yes, it is. >> that's not what i said, jared. >> that's what public infrastructure is. that's my understanding. >> well, let me clear about that. donald trump has a plan to invest in new public infrastructure. it is going to use, creative financing tools like private sector money so that we can do that. but what hillary clinton doesn't realize is that her bad trade deals, nafta, south korean fda, wto, pushed domestic business investment of the corporations, ge, gm, ford offshore where we need to have the companies investing here. ford and gm announced over the last couple of years, $5 billion of new auto production investing in mexico. it should be in michigan, detroit. >> let's ask you a quick question. one thing you'd like the companies to do is stop doing the corporate tax inversions. that's something -- >> absolutely. mr. trump wants to be all over

that. he's going to bring that money home. he's going to cut a fair deal with everybody, bring that money home. and that's the thing. the reason why gm and ford go -- >> a lot of the -- >> tax problems in the wto. equal treatment. >> jared -- >> a lot of the guys -- it's just that of the guys, all guiles on the economic team promoted today, they're the type of folks who made kind of billions of dollars from these kinds of -- >> dandy miccio is one of the best ceos this world has seen. >> you've got john paul sen making billions shorting the housing market. there's nothing wrong with this. >> if hillary clinton had done a better job of the economy and barack obama there wouldn't be a housing bubble. that dealt with the wto rules that created the whole housing bubble because they manipulated

currency. kept the interest rates down. >> the job market's looking pretty good today. >> we have established you disagree. we expected. >> we agree on the trade defi t deficit. >> we do. >> appreciate it very much. we'll save the rest of the fireworks for rio tonight. let's get to sue herrera. >> thank you. here's what's happening. consumer reports is urging the justice department to hike compensation to 475,000 owners of polluting diesel engines of volkswagen and allow those for a fix to reconsider that decision. it said the offer undervalues retail prices and the car may perform differently once it's fixed. thousands of protesters in hong kong to demonstrate against a decision that banned pro-independence candidates running. as many as nine were rejected. subway unveiling an all-new logo with a similar symbol. the first in 15 years saying the

arrows symbolize the choices of its guests. it will hit stores worldwide early next year. and if you think collecting hockey cards is a waste of time, well, listen to this. a wayne gretzky rookie trading card sold at auction for $465,000. that dwarfs the previous record of 94,000 for the exact same card. the winner, by the way, wishes to remain anonymous. that's the news update. back the you guys. >> wow. that's a big jump. >> a big percentage increase in value. yes, it is. >> yes, indeed. thank you, sue. >> see you in an hour. >> you collect cards? >> i thought there was an arrow in the subway logo. no? >> you know what is so funny? yesterday i was looking at the subway logo wondering -- >> why? >> what will we do that? now we have the new one today. how -- that's kind of ironic. yn. >> i thought the arrows were already there and clever in a

way. >> they put in what we thought was there to begin with. >> should that be the idea or fresher? >> exactly. i don't know. but, you know, my wife will tell you all my taste is in my mouth. what do i know? 30 minutes to go here. the dow up 173 right now. up next, a leading trader tells us what he's watching into the close this final session of the week. later, as the excitement builds to the opening ceremony of the olympics in four hours, we're going to go live to rio where carl quintanilla la takes us inside the housing complex we heard so much about. ♪ [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here.

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26 minutes left in the trading session with the dow up 178. if it's rally day it must be matt chesslock. are you in this market? >> you know what? this isn't going to be the number that is going to carry us to chu highs. >> the jobs number? >> yeah. helped us get out of the malaise we were in, certainly. you know, that's summer trading. you know? that's what it was.

this is a nice boost for the day and another number before they meet again if they do anything and that was only, you know, ratcheted up slightly so i'm not anticipating this being the move in the needing. >> does that mean you're getting in at this point or -- >> no. what's interesting is equities are the place to put the money. everyone said that. historically, if that's the place, it's quietly optimistic. i haven't heard anyone pound the table and be overly aggressive over this marktd. they pull their capital and when a pullback happens, everyone panics and sells so, you know, am i in it? i'm probably very neutral right now. ♪ happy birthday notice. >> someone has a round number weekend coming up this weekend. ♪ happy birthday dear bill ♪ happy birthday to you >> and there's a gift, bill. >> wow. >> many, many people know about bill's love for golf and may not know that bill is also -- open it right now, please.

>> all right. hold on, please. >> he is a chef of the closing bell team. and we got our head chef here something. >> oh god. do you know -- oh, this is hi he lair you. as many an executive producer will tell you i worked with over the years, one rule through the years was i don't wear aprons on the air but this one -- >> until today. >> i make the exception and i'll proed this "closing bell" apron. >> i love it. can i have one? >> next to the premier chef of the new york stock exchange. kenny polcari. proud to have you there. >> his recipes. >> oh yeah. >> please. please. i have seen him already. >> ben, is this heavy? >> no. >> okay. it ain't heavy. it's bill's cake. >> i'm worried it drops forward on its face. >> for a reason. >> yes. well, thank you very much. >> have a lovely birthday this weekend. we'll be thinking of you and, again, bill has brought us to so

many wonderful culinary adventures. >> that's my lot in life. just as yours. but wait a minute. i -- yeah. there we are in one of our cooking excursions there. with the apron on again. and, matt, i don't know. are you in the market or not? >> i'm neutral. >> thank you. >> happy birthday, bill. >> thank you. thank you, everybody. >> appreciate it very much. >> all right. >> talented crew down here. >> now what? >> closing countdown? ef with a little bit of this. >> early for this. >> we have more coming up. >> let's see. we actually have -- oh, jobs day. we'll talk about actually where the jobs are. >> we have somebody from white castle coming on to talk about the impact of wages and the economy and jobs and what it's doing to their business coming up here. >> a couple of virtual ones to talk about, too. stay tuned. more "closing bell" with chef bill right after this. >> thank you. big plans. so when i found out medicare doesn't pay all my medical expenses,

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all right. let's get back to business and the rally continues with 20 minutes left. the dow up 182 points. everybody else moving higher. put it is s&p and the nasdaq in record territory and what do you say we look at the sector heat map for the week? what do you think? >> should be interesting.

look at utilities. >> of the ten, four for the week are positive led by good-fashioned materials. >> utilities down 2.6% for the weekend. now a lot has to do with today and the kind of rally we have seen in the markets after the jobs report. >> you bet. >> according to the research firm gardner, the video game industry is one of the fastest in the u.s. economy. >> where's growth there's jobs and kate rogers is tracking where those jobs are and she joins us today from salt lake city, utah. kate? >> reporter: hey there, bill. that's right. the gaming industry is fast growing and also an industry in need of diversity, something of the gamer-gate controversy in recent years and now a camp of girls made games fostering talent of teenager girls. 14-year-old nabia isn't spending the summer playing sports or hitting the beach. she is learning to make video games instead. >> all of the guys at school, they would be like, no way, you

play games? you're so weird. i think that's the reason why a lot of girls don't go into gaming. >> reporter: she is part of a girls make games summer camp trying to introduce more girls to opportunities in the industry that so far is male dominated. over the past three summers, the camp created by layla taught more than 800 girls. >> coding i think in the 21 rsz century is learning to speak and write. >> reporter: during the camp, girls get to create teen video games, pitch them to industry experts and get them published. for the teacher, it is a chance to dispel the misconception that women aren't interested in video games and foster female talent that companies actively seek. >> they want diverse work force, more ideas and voices and this is how they get it. >> reporter: nabeha is looking forward to starting ninth grade this fall and also hoping to see her first game called edible

warfare pub lishled in the google play store. we're here at wild works in salt lake city. a local games studio. about 20% of the worker workforce are females and looking to increase in the months and years to come because so many of the games resonate with young, female players, an encouraging sign. >> definitely is. edible warfare. food fight. >> what happens in the kitchen sometimes at night. >> yeah right. let's talk more about jobs, the number itself and what it means for a sector that's not faring quite as well as video games. the restaurant industry and there are those that felt like it's a restaurant seregirecessi >> joining us is jamie. good to see you. welcome. >> thank you. >> what can you tell us about your business these days? >> well, you know, white cast sl a family owned business around for 95 years and on job creation, the biggest pressure

of the industry facing overall is a lot of pressure on wages and seeing that city by city, county by county and minimum wages increased an creating real inflation for restaurants and resulting in price increases that we're not seeing on the grocery side coming to food opportunities. >> you don't see a food inflation right now? as well. >> we definitely are seeing food inflation and finally getting a break on commodity costs, beef prices are lower, some other protein costs lower and first time in six, seven, eight years a break and the labor pressures are real and then, you know, we don't have that benefit of inelastic demand. we're seeing a shift of grocery. in fact, there's been a 2.5% increase in food costs at the rest rapt level and 1.9% decrease at grocery stores so -- >> you're saying, jamie, it's no accident that we have massive minimum wage hikes in terms of

widespread they are and a few months later, a restaurant recession. is that your fundamental argument? >> whatever the good intentions of these radical increases in wages, it has a real effect and don't underestimate the new overtime rule to take effect september 1st and real world pressures for restaurants to react, maintain margins to grow, add more jobs hopefully over time. >> take a core offering of the menu, mini burgers, give us a sense of the price for something like that basically today relative to, you know, two or three years ago. >> well, you know, we have seen gradual increases in even the steam grilled taste of a white castle hamburger. we have had to gradually increase prices. maybe three, four years ago that sandwich goes for 68 cents and today it's 71, 72 cents. that doesn't seem like a lot but it adds up. >> you guys you say your minimum wage, 35% above minimum wage.

you pay a higher wage than the typical fast food restaurant. is this pressure of the rule really that great on you guys? you are already well above it? >> it's what everybody in town -- we're fortunate. one in four of the team members been with us ten years or more. but at that entry level, that's who's hurt the most are kids for a chance for first job, they want to join the ranks of hard working americans and the starting pay, elevated, when's pressure to elevate it throughout the ranks, as well. cities like new york and chicago for us, we have been hard hit and doing our best to really focus on hot and tasty food but the fact of the matter is it's a real world impact. >> what do you think, you know, where are you seeing the change in the restaurant? i would imagine people aren't going home and try to substitute something that you could get at a white castle but maybe coming in, they're getting the same dollar amount and just goes -- it means less food days? explain to us like if somebody's

walking in and the nature of the transaction changing, what are they walking out with? >> we see that effect in two ways. first way is people just don't eat out as often. they make leftovers last longer and second thing, it is on average check in terms of maybe they won't get the side or the dessert on a stick that we sell at white castle. we are fortunate that we have a grocery store presence and in grocery stores around the country and balances it out a little bit at the castle. but definitely people just are able to postpone that restaurant visit. we don't have the luxury of a mandate attached to how many times you hit the drive through. for us overall, it is about being relevant and hot and tasty and connecting with the customers. >> lq'd. leftovers last longer. >> trying to imagine a dessert on a stick. >> great for a birthday celebration. >> white castle vice president joining us today. >> that was fascinating. >> it was. >> 12 minutes to go here into

the close. the dow up 180 points. s&p's up about 17. nasdaq's up 53 today. we're talking about all-time highs in the markets. summer games kick off today in rio. the focus of david darst's weekly acronym that he'll spell out when we come back. 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.

ten minutes left in the trading session here with the dow up 179 points. s&p in record territory. naz democracy's pulled back a little bit, i guess. out of that right now. our friend david darst joins us this friday. with some comments. where we finally get something that got the market out of the doldrums here. but you know what? before you do that? >> yes. >> susan li because the nasdaq is making a push to a record closing low. >> god love you. >> we want to go to susan li because that's what we have to do right now. and we want to find out what's going on there in the tech arena. susan? >> i won't take too long, bill. >> you take all the time you need. >> okay. the magic number looking for, 521886. that's the last record close of july 20th, 2015. intraday, we bounced above that

5223. we have pulled back a little bit but the nasdaq today, you know, propelled by the bio tech space. bio tech up and entering a bull market on monday this week. up some, what? up some 12% so far on the year. after losing about 24% the first six months of the year and also stellar earnings and the likes of facebook, alphabet and amazon. just the last week of july, helping propel the nasdaq to catch up and watching for it at the close. back to you. >> thank you. susan li. professional at work here. how are you, david? >> bill, happy birthday on sunday for anybody who missed that. >> thank you. >> it's great. we have the 31st summer olympiad opening tonight in rio de janeiro. we wish our american athletes much success and health. >> indeed. >> the acronym i'd love to propose is games. olympic games. "g" is great, good jobs number today.

that go along with good housing numbers, good ism manufacturing and nonmanufacturing numbers. average hourly earnings numbers and retail sales number. that's a reason. not just the jobs but the market lifti ining because it would bet the market holds steady. "a" is asia, basically pretty stable. stable right now. japan, they had this small stimulus. but no bad news. no currency devaluations out of china. holding steady right now. the "e" -- "m, monetary stimulus running at 180 to 200 billion per month. and may west said you can never get too much of a good thing but that might be too much of a good thing. okay? we'll see how that plays out. but there's a lot of monetary stimulus youds the united states. "e, okay, europe. 0.3% after 0.6 in the first

quarter. morgan stanley and investment committee reducing in japan committed. "s" is small and mid caps stocks. that basically to increase there. valuations. they have lagged the market. we think they're domestically focused. en crease there and increase in emerging markets which we have talked about before. >> even with the dollar making moves here? >> well, the dollar, kelly, that's not a good thing because that can hold back the market because it hurts oil prices, it hurts profits, it hurts exports. tripartide is not good. down 4%. "wall street journal" index 16 currencies, a broader index, than the dxy that we all have learned about which is only 6 currencies, it includes the swedish currency and shows how old it is. set up in 1971. >> little history for you there

on that index. always good the see you, david. >> nice to see you. have a great weekend. >> enjoy the games. >> all the best, go team usa. >> yes. absolutely. we'll come back with the dow up. we have the closing countdown for the week coming jirngs after the bell, zika affecting businesses in miami. a tour bus operator on the impact he is seeing. watching cnbc, first in business worldwide.

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2:30 left here heading toward the close with the dow up 183. bob pisani joining me. finally found something to get the market out of the doldrums here and took that jobs report today. so we have weekly charts. let's do the s&p. let's show you that one since that is sitting in record territory and for the week the s&p up just a fraction. >> yeah. it is enough. remember, we had been in a 1% range for almost three weeks now. we'll never more than 1% from a new high and the jobs report the nudge we needed. >> 10-year yield higher today. we had a flattening of the curve to some degree because short-term yields going up and now 1.58. up roughly a basis point. >> now the prospect maybe banks join the little rotation that we have been seeing in stocks and talking about techs. banks laggards all year. >> dxy, the dollar today, we

were talking about that with david darst. and up half a percent today for the week up three quarters of a percent. and what that does for oil, that's been -- that got down, what? $38 a barrel for a time this week. and we're back to $41.89 after the rally yesterday. >> stabilization of oil is a factor of the rally. that's scary dropping down there and another reason we're holding up well this week. >> how about the vix? down to 11. >> yeah. and they have a point. there's an awful lot of complacency out there. we got a better job report. there's a lot of talk of fiscal stimulus around the world and not monetary stimulus. japan and the uk and the united states even. there's reasons to be complacent right now. i don't put a lot in that little number there. i want the note before we go out, technology is a major mover

of why we have been doing so well. microsoft, apple, google, all of them with terrific numbers. >> thank you, bob. so we go out with a record for the s&p at least. the dow about 100 points up. about 75 points away with a gain of 185 points today. stay tuned now for the second hour of "the closing bell" with kelly evans and company. have a great weekend, kelly. >> thank you, bill. and welcome to "the closing bell," everybody. i'm kelly evans. finishing the day on wall street, everybody. the dow up 187 points. 18,540. just about is your closing level there. the s&p up 18 points to a record high 2182. same for the nasdaq. looks like with the gain of 55 points, high of that. 5221, 1% gain is a record high for that index, too. much more in a moment. also coming up, zika fears in

florida are getting worse by the day. how it's impacting the sit's economy and dependent on tourism. we'll hear from the director of miami tour company coming up. let's get right into the market story. joining us on the panel today, kayla tauschi and tim seymour and jeff cleveland join us, as well. stay right there, everybody. first, we get straight to the nasdaq. susan li, how did they do it? >> it was close, kelly. we have a new record close here at the nasdaq. last time we saw a record territory was in july 20th, 2015. we did hit 5223 intraday but we closed a little bit off that and today the index really been propelled points-wise by microsoft and apple and kraft heinz with better than expected results. bio tech, technology driving the nasdaq. seeing a stellar july up some 6%, really doubling the gains we saw for the s&p and the dow and hence the naz democracy and

catch up to do and before july they were actually in negative territory. so bio tech now in a bull market territory and some are thinking are we getting frothy here with the valuations? just for comparison stakes and people always go back to march tow when we saw the nasdaq trading at 69 times earnings, right now trading at 23 times earnings and in line with the 10-year average and frothy maybe for now and not over the historical period. back the you. >> very different nasdaq and some ways much more reassuring you. thank you. evan, if you look back at 2000 and the record highs of then and the dynamics in the market, this seems to be a much better place to be, no? >> it is better but i think for the market to go higher, has to be other sectors of tech. tech right now, five top tech companies globally are on the exchanges and the u.s. are total market cap is north of $2.3 trillion. so that's apple,

alphabet/google, facebook, amazon and missing one. microsoft? >> netflix. >> no. i'm forgetting netflix. those companies are together way more of the 10% of the overall u.s. market cap and it just to go higher, you know, you start pushing the envelope in terms of valuation. >> kayla? >> that was why people were so worried about the market last year because it's the company that is evan mentioned that were fueling the broader market gains. i mean, such an outsized percentage and hard to find bears to doubt the market and been so broad based and even today poz year to date. yes, a better than expected job report and the yield curve flattened and hard to understand what investors see for the financials today but nonetheless having all ten s&p sectors in the green, just shows you how broad based it is. >> citigroup saying it's a pain and the markets grinding higher

and the u.s. bull market just won't die. tim? >> well, they're saying get out of the way of things that really have i think suffered under immense both short interest and actually negative sentiment. i would argue, kayla, financials don't need the yield curve to outperform in terms of profitability on multiples. i don't think this is the best environment they have ever seen and looking over 20 years the shape, the slope of this yield curve shouldn't be what determines whether financials sink or swim. since last month's payroll number, financials big cap tech talking about and em and the face of commodity prices under pressure and oil have been the places to allocate funds and you have a bar bell between defensives and div stocks and short europe and japan. that works and will continue to work. >> jeff, could you find anything to quibble with in the jobs number this morning? what do you make of the reaction? >> i thought the narrative two months ago was that the economy

on a weakening trend after the may jobs report. i think this is one of the best job reports of the cycle. highering was up. revisions. wage growth now up 2.9% year to date which looks fantastic. that should help support the economy and the second half of the year and beyond and i think that's what can lead equities higher. and keep the market buoyant. >> yeah. this is -- i agree with that. but going back to what we talked about for a few weeks, you really have to look to the bond market to see whether or not it has legs or not. i mean, the breakout today, it was kind of a little breakout. plus or minus in the range of where we have been. to get a real breakout, you're going to have to see bond yields rise demonstrating and that's an indication that you have the economy does well going forward. the bond market ignored good jobs numbers or with the exception of -- >> the irony is that the 10-year

treasury yield might be telling us more about the global shortage of safe assets and not a barometer of economic activity. the economy's fine. what we're having -- >> jeff? >> people globally need yield. >> no, it is an important point but here's the one question which i'd throw back to you making that point, if it implies that interest rates too low for the u.s. economy, the economy is stronger and merits higher interest rates then that means conditions are too easy. in other words, the market should pricing in higher inflation expectations and growth expectations. are they happening right now? >> you are absolutely right, kelly. inflation, if you measure it on virtually every core indicator, wage growth is picking up, the market should recognize that and, you know, we'll see that priced in. i would say, though, that, you know, globally this demand of safe assets with us, persistent and so we shouldn't just look at

the 10-year to tell us how the economy's going. other way to say it, kelly, the fed should be hiking if what you say is true. >> we did hear jamie dimon say prepare for drastic action in the 10-year treasury market that he would not even be a buyer of 10-year bonds. that is guy running a company whose bread and butter is issuing debt for companies and said there's massive dislocation in the bond market. >> such an important point. when's happening at the same time? bank of england is another central bank buying corporate bonds. does this make any sense to you? >> in the sense that on a country by country basis, the monetary policy makes sense but on a global basis it doesn't. and that is, you know, for mark carney to do what he is doing, as the head of the bank of england, yeah, makes sense given he doesn't want the british economy to dip into a strong recession. i get that. but in terms of global outlook, negative yields in japan and negative yields in germany make no sense to me.

>> he said the same thing. mark carney said i don't want to go there and helicopter money and negative. tim, same question. you know, while understanding that these guys want to ease and up against zero, is buying corporate bonds a shortage of debt in the world, is that the right strategy? >> well, just forces corporates to actually issue more debt themselves and depends on your asset class and just from a markets perspective, this is phenomenal for em debt and sorry to beat that same tune and last five weeks you have seen the biggest run of inflows of em debt ever and asset class to default. >> emerging markets. >> you know, the trouble is that that's such a hot and gold space and as soon as everyone's piling in, they pile back out at the little catalyst. >> yeah. i think about the investors now investing in long-term and longer duration em bonds and bigger institutions, guys reaching out to what are probably double b and aaa minus credits in the em world.

so i don't know that you have a whimsical group of investors there. no question it's a riskier asset class and global central banks is giving a lifeline to asset classes that everybody said would go out of business. >> and countries. >> trading and doing very well. >> country oil revenues dry up and borrow still. >> yep. >> i wanted to mention brazil with the opening ceremonies tonight. have you seen the performance of the -- stock market's up 60%. the currency up like 15%. add it together, people almost -- i mean, tim, what is going on with this? doesn't make any sense. >> but it kind of does, kelly, they have the highest real interest rates in the world and gone through the healing process with tough fiscal policy for a long time. the politics aren't better. political scandals, economic scandals but we have stabilization. you had industrial data this week in brazil better. the headline indilgss maybe not the banks but look at the telecos and cbd on the new york

stock exchange. there's consumption there and left for dead so it makes sense to me. >> bouncing off some low levels. >> take the oil rebound out of that. petrobas. >> that's why so much hang tons price of oil. >> the stock market's down so much since they won the olympics back in 2009 and in a completely different economic situation now despite the fact that, yes, doing better than they were at the beginning of the year. >> i know. almost like the calendar year with the move off some very low levels. but the oil question is kind of an interesting one. still hanging over everything from the financials back to some emerging markets and you picked up some names on the cheap when it started to slide. >> yeah, yeah. no. like i said, i think for the overall market, you know, i don't like going, oh, the market's too, you know, trying to market time. very much against that. that's why all the calls by bill gross and goldman sachs to get out of the market, i think for most people, stay the kous.

but i do think that you're really going to see the bond market yields move higher to believe that the global economy's finally back on track. >> jeff, we'll give you the closing word here on the jobs report heading in to next week and the questions about the fed. what do investors need to take away from this report? >> i think cheer up, kelly. things are looking good. the labor market looks great. a lot of the fears that the fed had two months ago are gone. brex sit shrugged off. global growth is fine. don't worry about the 10-year treasury yield and the fed should move rates higher this year. >> perhaps. thank you for joining us. >> nice to see you. >> tim, thank you. enjoy the games tonight. "fast money" at 5:00 and in honor of rio, they find you some stocks to take hold the gold. top of next hour. new rules to prevent a run on money don't take effect until october and half a trillion dollars in stampede. the next guest said it could be

affecting when's happening with interest rates here. "wall street journal's" kim brown clains what kind of impact it has next. hillary clinton opening up a pretty big lead in the polls against donald trump. can the new economic plan set to be unveiled on monday turn things around? todd spaletto, president of the north face, we are working on the prototype to match customers to gear. watson, let's give it a try. say it's mid-june and i'm backpacking in yosemite. of our 353 jackets, i can recommend nine. watson, what if it rains? there is just a 3% chance of rain, so i recommend the breathable stretch fleece fuse form dolomiti jacket. a perfect choice watson. no wonder our customer loyalty numbers keep climbing. i believe we can do even better. i like the way you think.

welcome back. new rules meant to prevent a run on money markets go into effect in october and investors rotating in and out of funds and "wall street journal" calling a $500 billion stampede. migrating to government bond funds. ken brown is here to explain. welcome. >> thank you. >> it's ironic that trying to prevent a run caused a stam ped. >> exactly. the history of this is during the financial crisis and lehman failed, a run on the money market funds and the federal government stepped. in amazing thing and threatened the health of the corporate finances in this country. >> right. because what happened is people had a bunch of cash in the accounts and then that cash is worth -- a dollar worth less than a dollar. what happened? >> they changed the rules and the biggest group of the funds, prime funds, cannot promise that a dollar won't be a dollar.

the nav can fluctuate and people say, well, listen, i don't want that. everyone is out. and so, this is leaving -- this -- all this money a big source of funding for corporations. i mean, the money, you know, $2.7 trillion in money market funds and $500 billion moved and the numbers are really big. >> an interesting thing about it, though, going back to the wacky interest rate markets, is in the money market funds in a government bond then they don't have to worry about the floating. they can still kind of have that guarantee. but the problem is that's created huge demand for the very shortest maturities. >> just what the world needs is more demand of super safe government bonds. basically all of the $500 billion gone from corporate lending and municipal lending to government bonds and so the fed has had to provide liquidity. short term, some of those warning signs, libor numbers, are ticking up and it would show

a sign of a crisis. it is not a crisis. >> tightening. >> how important this is. >> interesting thing is when the three-month libor ticked up, around july 14th, which is three-month libor and three months before the rules set to take place. is that just a short-term move and people preparing ahead of that? >> right. running a fund, you don't want 90-day paper if you have to sell it in 90 days. everyone's been moving and so this is happening for a few weeks. you know, it's not been disorderly partially because there's so much money floating around. you can screw up right now. every central bank in the world is pouring out money. right? the issue is what happens if we return back to normal? >> ken, explain to the viewers why what we're talking about is, like, 0.000 kind of movements in actual net asset values. they're small in a practical sense. >> right. >> but in a theoretical sense,

it is important for them to quote/unquote fluctuate. >> it was very real in the financial crisis. >> yeah. they fix add flaw in money markets. it is that they almost promised they were bank account and you couldn't lose money but they had no capital behind that money and no government guarantee and so suddenly, you know, the drapes were pulled open and they weren't a bank account. that freaked people out and then went back to normal and the reality is hitting again. >> any chance congress puts it only hold or reverses it? >> one part what congress looks at municipal bond money market space and that money poured out and complicated why and the state and local governments are freaked out and gone to the congressmen saying we need the short-term funding and congress picks that up. i don't know how it plays out. >> it is a case where the promise kind of a free lunch promise. you can have your cash and earn some -- a little bit of extra yield on it and will be fine until it wasn't.

>> like the guarantees like fannie mae and freddie mac and implicit guarantees but they weren't really. >> what's interesting now, the other side of it is is companies used to use commercial paper sell it into the funds and fund themselves. $500 billion of that is drying up. tons of liquidity and not always. >> if i'm a company and need a short term money, where do i go? >> go to the bank. you can float short-term bonds. do a lot of stuff. the problem is, the best companies have no trouble. right? getting down to lower levels of borrowers, they get squeezed and, you know, that just weighs on the economy. so the tradeoff is the rules necessary and this, you know, we needed to do something about this. how much does it damage the economy? how does it slow down? >> a bit ironic because the funds and you'll correct me if i'm wrong -- >> i will. >> the fund that ran into trouble with the net value asset thing was a fund that had kind

of bought too much lehman brothers commercial paper. right? >> yeah. >> they were out on the end of the curve looking for higher return with higher risk and loaded up on the lehman paper and the one that broke the buck. is that right? >> right. the reserve fund. $62 billion, one of the biggest funds and they had the lehman brothers in it and cracked and that then set off a chain and everyone got out of the funds. $150 billion left money market funds in a week. so yes. that's exactly right. so now one of the good things is no one's taking the risks anymore. even no matter what the rules are. no one's doing that kind of stuff until unless people get aggressive. >> a reminder, too, saying to give you cash plus a great yield in the environment, they're getting it somehow somewhere. be aware of that. >> you know, 10-year treasury 1.5%, what can go wrong? >> nothing. >> guaranteed. 1.5%. >> thank you. >> thank you. >> ken brown from "wall street journal." donald trump with his economic

team, will refocusing on the economy be enough to help him make a comeback in the polls? plus, a look at how zika impacting south florida's economy already speaking to the director of the miami tour company in a bit. [announcer] is it a force of nature? or a sales event? the summer of audi sales event is here. get up to a $5,000 bonus on select audi models. there's a lot of places you never want to see "$7.95." [ beep ] but you'll be glad to see it here. fidelity -- where smarter investors will always be.

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welcome back to "closing bell." i'm seema mody. berkshire hathaway, reporting second quarter earnings, missing wall street expectations at

$2,803 adjusted. revenue of $54.46 billion. versus $56.47 billion estimate. we did see an improvement, though, in berkshire's insurance underwriting business. another number to focus on, operating earnings at 4.6 billion versus 3.9 billion representing an increase of 18.4% year over year. kelly, back to you. >> interesting, seema. thank you. berkshire hathaway shares. there's donald trump speaking live in des moines, iowa. >> not going to happen. we'll build safe zones in syria. we'll build safe zones. we'll build all sorts of things. we won't pay for it. we'll get the gulf states to pay. opm, other people's money. about time. we have right now, we have $20 trillion in debt.

>> all right. that's donald trump as we mentioned in a rally in iowa. opm he said, other people's money. that's the way to do things. republican presidential candidate unveiling his economic team and trying to rebound from rival hillary clinton taking that big lead in the polls. chief washington correspondent john harwood has the very latest. john? >> hi, kelly. it is a rough week for donald trump in the polls. let's just look at latest number. hillary clinton's got a 9-point lead, 47% to 38%. and let's look at what's behind those numbers. donald trump has advantages among voters of issues like crime, like standing up for the united states. those are things that will help him going forward. also, the economy he's got an edge. hillary clinton has got advantages on the other hand of being commander in chief, handling a crisis. standing up for the united states in terms of foreign policy. now, all those are the backdrop for donald trump trying to switch to the economy and get

some boost by his tweaks to his economic plan. her's the outlines of his economic plan which was unveiled last fall. top personal rate of 25%. top capital gains rate of 20%. top business tax rate of 15%. he would wipe out the estate tax. add 10 trillion to the economy. we believe he's going to trim the deficit impact by shrinking some of those tax cuts. we'll see. the people advising him, he rolled out today, more than a dozen names. people like john paul sen, harold hamm and steve moore. also a defection of a prominent bush counsel of economic advisers chair told me this morning he is not voting for donald trump. donald trump in his rally this evening is expected to endorse somebody who he's been estranged with, paul ryan. not sure that's going to make much difference given the strains already between the two and expect that development tonight, guys. >> john, he did say that he will continue adding people to his

economic team over the course of the next few days and weeks. notably absent are any women, especially considering that women are half of the workfore. any plans there? >> don't know what he's going to add to. but you're right. it is not a diverse team. also not a team with a lot of white house experience. it's not what anyone would call the a-team of republican presidential economic advisers. but it has a strong emphasis on donald trump's concerns about trade so peter that vor ra of uc irvine is a member that's skeptical about china and the trade deficit with china and feeds into the policy agenda of donald trump. >> john, it's evan newmark. speaking of the economic panel, i noticed that he's got some classic hedge fund guys. i mean, he's got steve feinberg. he's got john paul sen. he doesn't have any silicone

valley people, whatsoever. >> not much support in silicone valley. >> nobody to be considered kind of a classic american wealth creator outside of really the oil and gas industry. i mean, he is really -- it's a pretty narrow list of people or am i missing something? >> no. it is a narrow list of people but at this point, donald trump doesn't have a large pool of people to draw from. you know? most of the established influencers within the economics profession are not with him. i mean, just consider somebody like hank paul sen, george w. bush's last treasury secretary written an op-ed in which he says he's voting for hillary clinton because a trump presidency is unthinkable. donald trump will have to make do with what's available for him. >> i think the new course deal ceo on there. >> not happy about chinese steel imports, i'm sure. another group of people with a

grievances. >> thank you. we'll see what donald trump does say in terms of endorsing paul ryan this evening. time now for a news update with sue herrera. sue? video released today in the fatal shooting of a 18-year-old suspected car thief shows chicago police firing into the fleeing vehicle. and then handcuffing the blood-covered suspect following a foot chase. this is the city's first release of a fatal police shooting under a new policy calling for the video to be made public within 60 days. wendy's says it will stop using chickens raised with human antibiotics by 2017 saying as of this past june about half of its chicken supply without the antibiotics. it will also commit to specific goals for reductions of antibiotics in pork and beef production next year. the movie "suicide squad" opened with a massive $20.5 million in thursday knight's screenings in north america. setting a record for august

release an 13th biggest preview showing ever. the cast includes will smith and jared leito. china announcing the birtd of a new giant panda after a 5-month pregnancy, the bear delivered the newborn that came in weighing at about 6 1/2 ounces. it is her seventh delivery. can't wait to see him when he's introduced to the public. we'll bring it to you. that's it. that's the news update. back the you. >> i can't get over that tiny -- >> really tiny. when they're born, they are incredibly tiny. only a few inches long. so it's amazing. >> looks like a fuzzy red lizard. >> kind of. so cute after the fur comes in. >> yeah. i know. >> nothing cuter than a baby panda. >> why are you dissing the baby panda? >> she's not dissing the panda. >> it's incredible. maybe why i haven't seen it that much. >> a little bit older because

they're cuter. >> here in the u.s., they usually wait to put out the video until the panda's a little bit older because they're cuter. >> got it. see? i'm learning so much, sue. >> baby panda shock. >> there you go. have a good weekend. >> thank you. the cdc issuing a travel advisory to florida because of zika. is the sunshine state and miami in particular seeing a drop in tourism? we'll ask the director of a miami tour company in a moment. zika isn't the only concern about the summer olympics in rio. we'll head live down there for a look at the luxurious some athletes are staying in. ed to r? ed to r? plan your never tiring retiring retired tires retirement with e*trade. i'm in vests and as a vested investor in vests i invest with e*trade, where investors can investigate and invest in vests... or not in vests.

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welcome back. a record setting day here on wall street. s&p and nasdaq closing at new highs. s&p up and nasdaq up 54 to 5221. about 1% gains there and for the dow, although didn't quite get into that territory. this, of course, spurred by the strong jobs number this morning. miami aggressively spraying against zika and 15 cases determined to come from homegrown miami ms i can toes. the cdc's warning of wynwood is

first domestic travel warning ever raising concerns about tourism and a sunny locale drawing visitors of all over the world. joining us is gus moore, director of miami tour company. gus, we're eager to know, how's business? >> business is great. this is one of the busiest months we have during the year. people are concerned about zika. we have been fielding some phone calls. people concerned about the precautions we are taking. we have had two cancelations. both from groups from texas who were traveling with women who felt uncomfortable about visiting. but aside from two cancelations, this's all we have seen. >> it's still pretty early, though. i can tell you conversations with friends up here in new york who are worried about weddings in florida and whether they should travel down there and feels like it could persist for months these questions and perhaps the occasional cancelations. >> well, what i feel is it's not -- this is not isolated to miami or to wynwood.

i feel, it took about five months for zika to travel from brazil to miami. and i would expect to start seeing more zika cases anyplace that we have mosquitos. >> right. and that's the concern. are you guys doing anything, gus, to prepare for the potential for a dropoff in business? >> well, when we started seeing people's concerns, five months ago, we started immediately offering people free mosquito repellant and seemed to make people feel happy and when the cdc issued this report, this travel advisory, we decided to get ahead of the ball and to cancel the walking tour that we usually offer in the wynwood neighborhood and just do a driving tour through wynwood instead. and we have done that for the past three days. and no one seems to be too disappointed. >> what is the issue with the wynwood neighborhood? i'm not familiar. is there something particular

about where it's located or proximity to pools of water where mosquitos grow or what is it about wynwood? >> that's a great question. wynwood has become in the last year or so the top place to visit in miami. it's where the street art and the graffiti art are located. beautiful place to visit in the day. plu this neighborhood is primarily a warehouse district. it's also close to a railroad. there are lots of empty lots, empty lots have puddles of water so that's what makes this neighborhood unique and perhaps more susceptible to zika because there's more areas that people aren't really keeping an eye on. >> gus, what more could the state and the municipalities do to help businesses get by during this period? >> well, i think getting the word out as far as who zika is

really harlful for, i mean, obviously, harmful for pregnant women and women who are thinking about becoming pregnant. but for people, for adults, it is pretty much just a bad flu so i think if we can dispel some of the scare that's going on over zika, and inform people about the facts, that would help quite a bit. >> gus, thank you for joining us. >> thank you for having me. >> best of luck with everything down there. that's gus moore from the miami tour company. 2016 summer olympics in rio de janeiro, brazil, kick off tonight. next live to rio for the preview and a closer look at the luxurious and not so luxurious conditions the athletes are living in. you can catch the opening ceremony beginning tonight 7:30 p.m. eastern. don't miss it. where we explore. protecting biodiversity. everywhere we work. defeating malaria. improving energy efficiency. developing more clean burning

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seamlessly syncs across all your devices, right? oh, so my custom studies will go with me? anywhere you want to go! the market's hot! sync your platform on any device with thinkorswim. only at td ameritrade welcome back. half million tourists expected to attend the summer olympics in rio de janeiro beginning tonight. carl quintanilla is down there with a look at the games. carl, i imagine you've seen quite a bit of the grounds and how about the athlete accommodations overall here? >> reporter: well, kelly, i mean, you're a jock. you know that accommodations matter coming to games like these. but if you want good place to stay here it helps to play some basketball. her's the cruise ship that usa

men's and women's basketball teams call home. the silver cloud is docked at the port of rio. they have space away from the crowds and fans and mentally prepare after a long pro season. the families on a nearby ship. meanwhile, it's been their standard practice since '92 to live out of the olympic village and the men's basketball team hasn't stayed there since 1988. for most olympians, though, the digs less luxurious in the 31 brand new apartment towers to be converted to luxury towers when the games are over and we have heard that the accommodations not ready when they arrived. but plumbing and electrical issues discovered upon arrival and fixed by now. so, no dampening of the spirits of team usa and eager to march in the opening ceremony tonight with flag bearer michael phelps. take a listen. >> this is one of those things that you'll never forget. like slow motion in the gates. >> once every four years you

walk in the best country of the world with the best athletes in the world and goose bumps and chills. >> i'm sure there's lots of dancing and maybe drum beats an ensome really fun music. >> nothing more patriotic than seeing someone carry our flag and surrounded by elite athletes. >> reporter: just a few hours away now, kelly. still no word on who's going to light the caldron and pele is not able to make it here tonight because of health issues and excitement here in rio. back the you. >> do we know who's carrying the u.s. flag, yet, carl? >> reporter: yes. michael phelps, most decorated olympian of all time will carry the flag for the u.s. he's actually never walked in an open before. despite the fact that these are his fifth olympics. we have seen some pictures of him getting dressed. that's going to be a big moment tonight. >> wow. and, yeah, i can't even believe it's here again. by the way, carl, just real

quick, compared to london, that was pretty efficient, pretty well executed. how are things so far for you in rio? >> reporter: you know, we feel good. i mean, our experience is great. they're doing this a lot less expensively than london did. we'll see how that plays out over the next couple of weeks but so far it's all systems go. we've been very impressed. by the way, before i forget, happy birthday to bill. >> yes! absolutely. he'll be doing some celebrating of his own i think. carl, thanks for joining us. carl quintanilla down in rio. be sure to tune in to nbc tonight for the olympic opening ceremony. kicks off at 7:30 eastern p.m. joining us is founder and ceo of wazel, a sports apparel company sponsoring and clothing for athletes headed to rio. great to have you with us. you're practically afraid to utter the word olympics these days. >> it can be dangerous, yes. >> how difficult is it?

because we have talked a little bit about crackdown of olympics hash tags and the rules to put on the apparel and whether u.s. athletes getting the sponsorship needs. what is your experience as a sponsor here? >> yeah. i think just looking at it from the perspective of a company that sponsors track and field athletes for, i mean, everything we do, olympic moment is like the crown jewel that comes around every four years so it's a huge, huge marque moment and the smaller companies iced out of the olympic moment because of all these incredibly strict rules and regulations that basically have it so that we can't even congratulate our olympians that we have there. >> who, you know whose fault if you want to put it? olympic committee? go back to the u.s. governing body? because of the sponsors of nike

and locked up the contracts? why is that? >> yeah. it kind of goes down all through the chain of the different acronyms. but it starts with the ioc and it goes to the u.s.o.c. and u.s.a.t.f. and maybe not surprisingly about money and the fact that the olympics kind of packaged and sold for millions and millions of dollars, and, you know, that's a good thing. it mean that is the olympic movement is alive and well and what's not so good is that those millions of dollars are not really making it down to the athletes themselves. and many are actually living and training at poverty level. four years in between olympic cycles. and so, as a company that sponsors athletes, we would love to see an end to that and see the athletes really be able to make a good living. >> sally, it is evan. is this a problem that's particular to the united states? or, does this occur in all kind

of western and well dreveloped countries? united states tends to do the olympic funding not as part of state or federal funding, right? it is done independently. but in other countries, state plays a big role, so are we really talking about a problem largely here just in the u.s.? >> you know, i think it's so different depending on the country that we're talking about because, obviously, with something as diverse as the olympics, you have all the countries in the world hopefully participating so it really just depends. i think you see a focus on the u.s. as maybe, you know, should be a leader in showing how revenue from an event like this can be shared and can be a meaningful -- it can play a meaningful role for athletes training something as significant as this. >> fair to say that the athletes have a love/hate relationship with nike, the sponsor of track and field and had sponsorship

locked up for decades past and probably decades to come? you're a newer company and, you know, there's a lot in the running community big fans and how difficult is that for you to compete? >> yeah. for sure. i mean, i like to say nike played an incredible and important role in the sport. starting in its history. building it up. and i think the thing i like to be careful to say is that what we're really asking for is more of an ecosystem where a whole bunch of different companies are allowed the opportunity to sponsor athletes, to be involved in the sport and the way it's structured right now that's not really allowable and it really starts before the olympics, say, at the olympic trials. we got contacted to take down photos congratulating our athletes that made the team and using trademark turns like olympics and rio and they basically said that what we were doing constituted olympic advertising and, you know, it's just not right on a lot of

levels but, you know, i like to say that we would love to -- the opportunity to play well with others in the sport and that really that's what the sport needs. >> i apologize showing sites from the website and hope it doesn't get you trouble all over again. >> no. >> congratulations on the four athletes you are sending to the olympics. >> thank you. >> we'll be watching for. best of luck. thank you for joining us. >> thank you very much. >> that's sally, founder and ceo of wazel. macy's, jcpenney, another big read on the state of the consumer. we have a preview coming up. but first, is it worth paying up for high fidelity music streaming? it costs about twice as much as the lower quality services. surprising results of the in-depth research when we come right back. the fintech services start-up. hello watson. your analysis of social media and conversations on various trading floors, helps us uncover insights.

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liberty stands with you™. liberty mutual insurance. welcome back. there's more options than ever to stream high fidelity music hitting the market, but is better sound delivered as promised, can people tell the difference and is it worth the money? >> that's right, apple music. google play, spoti fy, you know the traditional streaming player, but now, sites trouting their premium high fidelity services. uncompressed music offers better sound quality, we want ed to knw the they're wort worth it. we tested them out asking some of our cnbc colleagues and here's what we found. music stream lg. everybody's got an opinion on which service is the best.

tech's bigs player rs involved. charging listeners $10 a month. celebrities have been pushing high fidelity services that cost twice as much, but is the sound worth playing double? we'll be bring ng our colleagues and putting them in the chair nor a blind test. going to play them three different songs on three different services to see if they can tell the difference. the result? most ears could not tell the difference. >> sounded compressed. >> maybe this one is, i don't know. >> i'm guessing. the first time, it was obviously. >> no clue. >> only a third of the picks were right, but that's what you get from randomly guessing. the last one was the best. >> wow. >> i was completely wrong. are we sure we got this wired right? >> our audio engineers were stunned. >> worst to best. >> first one kind of seemed -- all three.

>> was it? >> it's very difficult. >> even steve liesman, who has his own band and mixing their music, he couldn't get it right. >> the first one was the best one. because i didn't like it as much as the second one. >> so, while some consumers might be buying the hype, it could all just be white noise. maybe brian sullivan said it bes best. >> folk, pay as cheap at possible for music because it doesn't matter. >> so, we reached out to all the companies involved and none got back to us, except for deezer, who has a high fidelity product and they're sticking with the industry theme, which is that the audio files can hear the difference. if you look at pandora, spoti fy, they were worth $10 billion and the resurrection of an a l was because of the ipod. that's white matters on a large

scale. this week, kanye said he wanted apple to buy it because he wants to get his check and get out. zpl how many audio files are there that would be able to identify this and if you're building a business, shouldn't you build it for a wider audience? >> you said it best. >> you listen to a lot of music. >> i do. i don't think it makes that much of a difference. in fact, i kind of lean to a low produced music. the hisses, white noise. it reminds me of playing records, which is not something anybody else on this panel would be familiar with. >> what steve liesman was saying. >> he was in there about ab hour. apple is getting labels to mast e for i-tunes directly. now, they want them to make the music sound the best for computer. >> i find it fascinates some people. thank you so much.

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is behind us, but the retailers start to report next week. i can't imagine this is going to lift anybody's spirit. >> usually tends to change people's view about the economy. >> amazon's earnings are a better tell even they they don't make money. sometimes they do. it's much better than what's going on. >> you have foreign exchange balances. industrial production. tons of data. at least five or six. >> that would have been off the radar screen, but any signs it's -- >> i think there's going to be next week, again, if you want to see follow through to this week's rally, or whatever you call today's rally, you need to see, you need to see other people believe that the global economy's growing faster than it has been. >> we're going to go try to

simulate the global economy. >> you going to rio in. >> see you the week after next. kayla, evan, guy, thank you so much for joining us. as mentioned, a ton of these retail earnings we'll turn our attention to next week. "fast money" begins now. >> fast money on a summer friday starts now. live from times square, i'm melissa lee. your traders on the desk -- tonight on fast, stocks making new records, but if you missed the rally, we've got the one dow stock that can get you back in the game. plus, what do 3-d system, fit bit and square have in common? suddenly come back to life. dare to buy these stocks? and later, do you hear that fake olympic music? the real song and we've got four stocks to go for the gold. but first, we start off withhe