coming in. >> that would be much better. >> in search of profit. >> yes. >> but the problem is barriers to entry have clogged the system. but you're the only broadcaster she spoke to, brian. congratulations. >> great interview. >> thank you. >> a fellow virginian. >> "closing bell" starts right now. hi, everybody. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> i'm mike santoli in for bill today. investors focus on jackson hole as fed officials begin to speak out ahead of the speech on friday, tomorrowment we'll take you there live. >> mohamed e erian will join us and says central banks are becoming less real haven't. >> getting to be a loud and crowded case being made. >> pressure on janet yellen's

speech on friday. two retailers, two stories. tiffany up and the dollar stores down. dollar general down 18%, both on the back of earnings. we'll take a closer look at what's going on with the consumer. of course, the other big story, mylan's ceo speaking to our own brian sullivan after outrage of the epipen prices. >> i'm hoping that this is an inflection point for this country. our health care is in a crisis. it is no different than the mortgage financial crisis in 2007. >> heather bresch pointing out that pharmacy and prescription managers deserve some of the blame. >> an industry fighting back saying, hey, don't look at us. after the bell, senator klobuchar of minnesota with a daughter of alelergies and familiar with the epipen and joins us in a first on cnbc interview to discuss what she

says could be anti-trust violations on the part of mylan. there's a lot coming up. let's start with the speech tomorrow. investors are swarming in jackson hole. steve liesman is there. steve? >> reporter: thank you very much. it's worth remembering for several years the fed's annual meeting in jackson hole amid crisis. the great financial crisis. the fiscal cliff and fears of the european union to break up to name just a few. as marks await that big speech tomorrow, the debate is more about whether the fed can once again raise interest rates. >> labor slack is coming out of the labor market. we're making frustratingly slow progress ian some progress on inflation and i think that gdp growth in the second half of the year will be stronger because the consumer is strong and even the second quarter gdp number disappointing was disappointing because of an inventory adjustment but final demand was,

in fact, strong. so, yeah, i think the case is strengthening. i'm not going to speculate on which meeting. >> reporter: now, there's still plenty of reason for worry. u.s. and global growth is sluggish, inflation below the 2% target and the frame work for deciding on rates, the topic of the meeting, it is a point of criticism. but this year, these majestic mountains frame a meeting more about controversy rather than crisis, kelly. >> a lot of that controversy coming in the last couple of days from some pretty interesting places. we had kevin morrison of "the wall street journal" attacking the fed this morning and fred ip talking about the impotence and a lengthy piece just out including many federal officials feeling they're not sure their role and seems like an institutional crisis of confidence. >> reporter: there is some crisis of confidence i guess is a way to put it. i mean, just take the basic mandate of the fed, an inflation target of 2%. they can't hit that target and they're not really quite sure

why and what needs to be done to hit it in terms of maximizing employment and they think they've hit that particular goal and the idea of more people to be brought into the work force is one thing that's out there. and then you got uncoordinated policies all over the country. plenty to talk about and debate and only difference is the edge of our seats with financial crisis after financial crisis. this year, at least a chance to step back and debate some of those more broader issues. >> steve, in the spirit of stepping back, looking at the situation of a broad lens, we were talking about the so-called misery index. you mentioned the fed unable to reach the stated inflation target. but yet, we are from a consumerer's per suspect nif a benign place combination of unemployment and inflation, as well you know. it's a friendly backdrop. so why do you think the faith in the fed is now seeming like it's ebbing? >> reporter: well, i mean, let

me just make one point which is that there's -- it doesn't pay for anybody politically to back up the fed. right? a lot of people, the republicans bash them. and the democrats even though they were responsible for pointing a lot of the fed members, there's no -- nothing to be gained to defend them. the other thing is, we're in a very, very difficult period here. the data's been up and down, been very, very inconsistent. so the fed seems like it's inconsistent. you know, kevin writes an eloquent piece today and i don't see in the piece the suggestion for what the fed should be doing, why raising interest rates would help the situation right now and what a better frame work is. that's not in his piece and though the criticism is eloquent. >> yeah. very true. the context is it's an anti-establishment tone to the country and the fed is very much the establishment. so steve liesman, thank you. >> thank you. we have kimberly falls, jonathan korpina and our own rick santelli.

rick, let's start with you right now. i mean, what is the rejoinder to this idea that the fed can take a longer view right now? they don't really have any fires burning immediately that they have to put out. and we're maybe going to hear about their longer term approach. is that a good thing? >> i would like to see them have a longer term approach than the second hand on my clock and every morning's data points. they're supposed to be long view, supposed to be nudgers. they have short fuse and nuclear with regard to very experimental, very aggressive policies. just think all the securities still on their balance sheet. listen. i don't know what the fed can do from here. but as kelly aptly pointed out, you know, they have already lost these guys and now losing the cheerleaders. in terms of data and how things are going, you say no fires. i agree. basically, i disagree with steve. the data jumps around, always jmps around. but if you look at the last ten

quarters or even longer, we have consistent sub-par average growth. no recessionary pressures. no real growth pressures emerging. i don't know that that's going to change. i think the fed needs to change. and i think the first place they need to change is instead of raising their target from 2% to 3% which is truly hysterical, maybe they ought to come up with a true reblending of what an average economy can do coming to prices. okay? if you have a 4% economy, maybe you can target 2%, 3% economy. i don't think you see the price pressures. they're very much core lated with growth and not with the productivity levels we have or i should say productivity down, the pricing pressures go down. i think that they need to recalibrate and extend. never too late because there's nobody there to take their place. i'm kind of surprised steve is kind of a blame it on rio, blame it on washington thing.

you know, washington is in ineffectual. if anybody's to be blamed, i agree, washington hasn't done enough. congress hasn't done enough and only because of federal reserve is totally the enabler. >> kimberly, it looks like you think rates stay low. what parts of the market do you recognize for investors? >> well, you know, yeah. we think that rates stay low. what will they do? raise them to lower them down the road? so for my retirees and investors out there, we look at the municipal markets because this is giving my high net worth individuals, looking at 2% yield tax free and we're in california so like a 4% yield for the client and adds significant income to the portfolio and i like with growth of leases in there, that increases their income. it's kind of a bridge between the equity and the bond market and you have growth real estate in general so that gives them

the growth opportunities, as well. >> jonathan, how's the stock market set up here? basically in the middle on the s&p 500 of the month-long range right now. kind of maybe in a neutral state heading into the big news tomorrow out of jackson hole potentially. how do you think things are set up after we basically have been so calm for so long? >> not surprising we are in the middle of the range right now because coming into this week, unfortunately, the only thing that everybody was looking for and waiting for is what's coming out of jackson hole tomorrow and then after we hear that, i think everything's going to pretty much shut down for the rest of the summer. we have a lot of economic data next week and i think traders and investors have written off the summer at this point right now and looking forward. that being said, you know, there are some things that we could hear coming out of jackson hole. there are some things coming out of economic data points coming out next week that can move our markets and when there's less participants in the market there could be some more volatility. >> by the way, kimberly, going back to one of the bigger developments and an issue over

mylan's pricing, you have the whole industry under a mic microscope. they benefited. everybody handing off the products and general price inflation, that seems like it's changing now. everyone could potentially lose from that. but you still like health care. is that right? >> i do. i like it for the long term. now, if you're a trader and short term speculator, want to be out of it right now with mylan and the issues bringing to attention. i mean, myself my son is allergic to peanuts and so i've seen this for the last ten years. in your possibility, $100 for the deductible. bringing athe engs to this is good i think. it brings more competition in and that will level prices long term so for us we like the health care sector long term. >> all right. kimberly, thank you. thanks also to jonathan and rick santelli. >> hau. key retail earnings of consumers today.

courtney reagan has details. hi. >> hi. i feel like the lesson of ret l retailer earnings sector is they're telling very different story. tiffany said tourists are spending less and the results good enough for investors. several analysts predicting a path towards improvement. shares are considerably higher today up 7%. lower commodity and other costs coupled with price increases did improve the margins contributing to the profit beat. but sales both in total and on a comparable basis disappointed all regions with sales fall. europe down 13%. though the uk strong in the wake of the brexit vote. comp sales in the americas down 9%. investors aren't impressed with signet jewelers quarters. shares down 12%. opposite of tiffany. they say sales weakness broad based, particularly in energy producing regions. now, if you remember not so long ago, dollar stores taking from

walmart but may now be taking that share back. dollar general and dollar tree both falling short of expectations on profit, revenue and comp sales. the dollar stores together say that lower store traffic, lower food prices and new criteria making thousands of consumers ineligible for food stamps all contributed to hurt sales. so we have got a lot of different things going on here in retail, kelly. you have quwalmart doing well. tiffany up but not the greatest quarter and signet not putting up a good quarter and shares falling. >> it's tough but also underscores just being good operator in a lot of businesses. stale head scratcher for the dollar stores. thank you. 45 minutes to go and the dow down 32 again. the s&p down about 3. the transports doing much worse today. they're down 49. the nasdaq down about 9. up next, allinz's chief

economic adviser mohamed el erian. and heather bresch saying this morning that price hikes for the epipen result from the middlemen and the broken health care system, express script shares hit hard in the wake of that interview. down more than 6% now. how is that company reacting to the call of the health care system? we'll speak to the chief medical officer coming up. keep it right here.

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welcome back. the market is broadly under pressure this afternoon but that's especially true of shares of truecar down more than 8%. this after amazon launching a new website called amazon vehicles. it is going to be a car research portal with information on new and used vehicle models for shoppers. can't make purchases there but clearly the competitive threat from amazon entering truecar's domain, mike, has investors concerned. >> never good news. not the transaction, less traffic and you never know. >> yeah. investors are focusing on the fed's annual meeting in jackson hole, wyoming, right

now. awaiting janet yellen's speech tomorrow morning for clues of interest rates, some are questioning if the fed is losing relevancy. >> let's bring in mohamed el er ian. we were saying this criticism is building in many places for now about the fed but seems to be, you know, now kind of in-house. do you think there's fed officials themselves who are starting to question sort of the efficacy of the approach of the last many years? >> i suspect so. i think that there is a growing number of people who are realizing that in terms of delivering economic outcomes, the fed and other central banks are less influential. in the case of the bank of japan, they're becoming ineffective if not counter productive. but that doesn't mean that the fed is not relevant. the fed is tremendously relevant for markets, for the political system. they're just less effective.

>> well, if they're less effective, mohamed, in this environment or this stage let's say of this large cycle, what should janet yellen say tomorrow, given the fact that her topic is supposed to be about the fed's tool kit and perhaps a longer term strategy for managing this economy? >> look. she is in a different spot for two reasons. the first is the venue itself. some central bankers have down played jackson hole. others like bernanke used it to signal changes. her inclination is to down play it. she's being pushed very hard by the marketplace to do so. the second reason is there's not much she can say. i'm not a believer in raising the inflation target. they can't reach the current inflation target. the truth is it's up to other government agencies to step up to the plate. the fed has been the only game

in town for too long and if it continues like this, the collateral could be quite large. >> you know, when we're diagnosing the problem, mohamed, back to mike's point on the misery index, seems like the fundamental argument of the fed continues to be growth. right? because we have had one of the longest expansions in history. unemployment rate is near historic lows. the inflation rate is quite low. arguably too low. but by those overarching factors, it would seem to deliver a pretty benign verdict and we come back to the growth issue, the productivity issue and to those structural concerns? is that what you're talking about? >> yes, i am. there are structural headwinds to the u.s. economy and massively to the european and japanese economy that central bank policy cannot overcome. secondly, from a cyclical perspective, you need a more

balanced response. in europe deal with the debt problems now because they'll get worse and finally economic policy coordination around the world is at an all-time low. put that all together and it doesn't speak to the effectiveness of the tools that central banks have. it speaks to other government agencies. >> where does that leave an investor, mohamed, at this point? are we just sort of getting used to this environment and should we continue to get used to this environment where global rates are anchored at the low levels and essentially it's a chase for scarce yield around the world and even scarcer growth perhaps? >> so ironically, investors have done very well. why? because central banks have repressed financial volatility. pushed up virtually every asset price and therefore delivered returns from the future to investors today. that is the good news. but investors have to realize a few things. now it's all about relative valuations. the absolute valuations are artificially high. if you continue to buy risk

assets, you're being driven by relative valuation. remain tactical, agile and realize that we have been decoupled from fundamentals. so there are possibilities for major air pockets ahead. >> how do you explain all this to bosa, mohamed? >> i don't. i just tell her, you know, let's go for a walk and she loves our walks. >> we should mention that tomorrow is national dog day so it's appropriate to honor your beloved one. >> thank you. >> that's mohamed's pal bosa. >> doesn't look like much rattles bosa. >> calming influence we think. >> thanks to mohamed. here we go with 40 minutes left in the trading day. the dow, s&p and nasdaq all trading tightly together. down less than 0.2%. dow down at the moment. hillary clinton speaks out in reno, nevada. highlights and response to donald trump calling her a by got. and later, we'll discuss

uber's loss of $1 billion in the first half of this year. a venture capitalist says whether it's a bad sign.

welcome back. there's live pictures of hillary clinton who is in reno, nevada, speaking a day after donald trump has called hear bigot.

eam eamon javers has the reaction. >> reporter: it started yesterday with donald trump accusing hillary clinton and democrats of taking african-american votes basically for granted. and went so far as to call hillary clinton a bigot. here's that moment from yesterday. >> hillary clinton is a bigot. who sees people of color -- only as votes, not as human beings worthy of a better future. >> meanwhile, today hillary clinton's campaign released this video online linking donald trump to white supremacist groups and racism. here's a little bit of that video. >> the reason klan members like donald trump is because a lot of what he believes we believe in. >> tough stuff there from the hillary clinton campaign in that online video. as you said, hillary clinton

speaking now in reno, nevada, where she's saying that trump from the start has built his campaign on prejudice and paranoia. there's a line in the speech she is delivering now, kelly, in which she says a man with a long history of discrimination drawn from the pages of supermarket tabloids and the far reaches of the internet should never run our government or command our military. very tough stuff back and forth from hillary clinton and donald trump on the issue of race, kelly. >> and she's still speaking and might be more to come. thank you. >> i'm seeing a tweet storm of hillary clinton's exam pain reiterating the points. >> speaking and tweeting at the same time? >> may have shared the password. time for a cnbc news update. >> here's what's happening at this hour. flights are resuming as southern florida airports after the faa briefly ordered a groundstop following a power outage at miami's terminal radar approach control. most of the systems have since started running again. the death toll has risen to

250 from the devastating earthquake that rocked central italy yesterday. 365 people have been injured. that aerial footage released by italian authorities showed the extent of the destruction in this particular town. north korean tv releasing video it says showed a ballistic missile from a submarine on wednesday and kim jong-un who it said was inspecting that launch. the oakland raiders of the nfl filing for three trademarks to the trade las vegas raiders. they met to discuss funding for a propose ed 65,000-seat stadiu for the team. the cost rumored $1.8 billion. all right. you're up to date. almost football season. back to you guys. >> yeah. >> california? can't handle more than two teams? >> other nfl owners, softened up

the previous opposition. >> they have. they have. absolutely. >> very interesting. raiders and vegas? it does kind of make sense. >> a bad boy image. right? there you go. >> kind of works. >> thanks, sue. >> sure. just over half hour left in the market day here. dow is down 22 points. kind of getting closer to the flat line. nasdaq down just about 5 points. mylan's ceo heather bresch says the epipen's price hikes result from problems with the outdated health care system in this country. >> is she right? are the middlemen to blame for driving up drug prices? reaction of express scripts chief medical officer next. ♪

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blame the system. that's pretty much mylan ceo hetder bresch told brian sullivan today explaining why the company's price of epipen seen price tykes of 400%. >> meg tirrell joins us now. meg? >> that's right. we are hearing that it's the system that incentivizes higher prices on brand drugs and she said if you don't play in the system it's broken today the products aren't going to get to patients and this is putting pressure today and a lot of

focus on the quote/unquote middlemen in the drug industry. well, this is a very confusing system. and we have here schematic provided by ever core isi. the. we appreciate him giving this. it is confusing. see here there are several players from the patient to the pharmacy, to the pharmacy benefits manager and the company at the top. so here's how it starts. the patient pays a co-pay for the prescription. goes to the pharmacy. and then looking over at the pharmacy benefits manager which reimburses the pharmacy for the prescription. and often pays and accepts dispensing fee there. the payer, the health insurer reimburses the manager for the members' drugs. often then the pharmaceutical company will provide a rebate or a discount to the pharmacy benefits manager passed on to the payer. often, though, part of that rebate is kept by the pharmacy benefits manager. the distributor on the other

hand, drug, pays the manufacturer in exchange for the drugs, often getting a fee there, as well. for distributing the drugs. to continue on from there, the pharmacy pay it is distributor and dispenses the drug. this is a very confusing system. i spent several -- a while on the phone with ross of sis trying to understand this and he said the fact we need a schematic to understand is a problem. but you can see here the focus on the middlemen is driving down the stocks of the pharmacy benefits managers and express scripts down more than 6% today and seeing these guys, aher source bergen, mckes son and cardinal health hit and because the attention is making people nervous. we heard from the pharmacy benefits manager group and said mylan is trying to reframe a pricing problem into a coverage problem. blaming payers for the mass i price hikes is a red herring and

doesn't pass the laugh test with policymakers. joining us to discuss this more is dr. steve miller, chief medical officer for express scripts. dr. miller, thank you so much for joining us. >> thank you for having me. >> steve, so what mylan ceo heather bresch said today is it's the middlemen responsible for incentivizing higher drug prices. how do you respond to that? >> well, you know, that can't be fourther from the truth. we would love to see lower drug prices. we pass the savings of the marketplace back to our plans. and so, i challenge her. she can lower the price today and we'll make sure that our patients get lower co-pays and lower prices. >> one of the issues everyone cites here is how opaque the system is. we don't know what rebates are being paid, what the deals are, what the fees are taken out of the system. why won't you guys make clear what you're getting paid? what deal you're getting. >> yeah. so that's a great question. as you know, we love

transparency for our patients. our patients should know what they're going to pay going to the pharmacy counter. we love transparency for our clients. they can come in, they can audit their contracts. they know exactly what they're going to be required to pay for our -- the products we help them adjudicate. what we don't want is for our competitors. if you remember back to hepatitis we created a price war because the competitors didn't know what price we could get. and i will guarantee you when a second drug comes out for an epipen, we'll create that same price war and drive down the price but it's going to be because our competitors don't know the same -- what price we'll be able to obtain. >> this is kelly here, steve. the journal blame it is fda not green lighting the competitors. i wanted you, your company specifically in the cross hairs of the market and looks like it is on washington, too. take a listen to senator grassley said on the network earlier today. >> we need to look more pbms.

i'm not saying i'm having a hearing. i'm going to wait for the answer from mylan. if an answer isn't legitimate and prices don't go down, then we'll talk about having a hearing. we could get in to that, as well, at the same time but i'm going to make that decision after september the 6th. >> sounds like, mr. miller, you guys will be next and want to know how much you're pocketing for every epipen sold. >> you know, i look forward to the discussions because the reality is that with the epipen, you have a monopoly. the teva product not on the marketplace. the sethat fe product isn't on the marketplace. mylan has a monopoly. when companies have a monopoly for that temporary part of time, we actually can't have the free market work. we can't pit competition against each other and she's capitalizing on this. we have seen this with market

skhleri and a technique that they do and if she wants to lower the price, she could lower the price today. the other thing i'll tell you is that the co-pay assistance cards she rolled out today, this's great, the average co-pay of express script patients over 18 months gone from $73.03 to $73.50. it is only gone up less than 50 cents even though she's taken the drug up by over 50%. and so, we're really trying to protect our patients, trying to protect our plans and she could roll back the prices today. >> dr. miller, you said that this particular product happens to be a monopoly position right now and you say roughly equivalent alternative. does express scripts have a role, do you try to take a role to nudge plans potential alternatives or essentially just follow what the prescription is? >> yeah. so in this particular case,

there is no alternative. you would have to go back to vile vials and when you consider a situation, unfair to paramedics, to parents or anyone else to have to draw up a vial and give it to a patient. and so, epipens are the safest solution in the marketplace right now. what we really need is more pen peck too long competing with it and that's what both teva and santa fe were hoping to bring to the marketplace and so -- >> dr. miller, sorry to interrupt you but to go back to the vial question. what about the product which is provided by impact labs. i understand they have a supply chain issue right now but that is a product of epipen or ep neff rin in an auto injector that's available. >> we have looked at that. the unfortunate thing is they can't provide but a small fraction of the marketplace and essentially have a -- essentially a monopoly by mylan. >> one more question. not about the epipen but the

pharmacy benefits manager business model in general and something that the industry loves to whisper about and place the blame on pbms and heard several times that new cholesterol drugs, for example, priced higher than a lot of folks expected on a list price basis because of the discounts then wrought out by you guys and the fees paid for getting the discounts. how do you respond to that, that the list price is driven higher on the new drugs of which two and compete because of the discounts you guys get? >> i don't think that -- we don't believe that's true at all. we could handle a system that uses rebates or we can actually handle a system where they just have low prices. either way, what we'll do is negotiate on behalf of our plans to get the lowest net price for our patients and our plan sponsors. so we have the flexibility to work the system regardless of how the drug manufacturers want to do this. where we have trouble is when there's a monopoly and seeing

today a monopoly. >> you're seeing that she could lower the price of the epipen any given moment. couldn't you guys lower your take? >> oh, our take is really small part. if you look at the -- >> what is it? >> pbm industry, we make a margin of about 5%. >> 5% of total sales, what would be your take for one of mylan's epipen buying a pack of two? >> i don't know and it's different for different clients. you have to remember, we have a huge part of our business that's 100% pass through of the rebates, where it all goes to the clients and then other clients where we're allowed to take a percent of the rebate so it varies for the different clients so i can't -- i can't off the top of my head give you an answer to this. >> your shares down 6% and investors basically guessing you're going to lose the margin for this particular product or possibly that margin you reference from the business as a whole. if more scrutiny is brought to bear in the system, an la wall street meltdown of 2007 then the

inflationary period sounds like it's over for the whole industry. >> yeah. so we have seen this before. we have seen pharmaceutical manufacturers try to place the blame on the pbms but to have a free market, the pbm is best solution and how you aggregate patients and you actually can pit manufacturers against each other and get to the lowest net cost so unless we're going to get to a single payer solution and i don't think is the right thing for america, the pbm actually has been proven time and time again to lower costs and improve care for parents and so we think that we'll weather the storm and we'll continue to be able to show our value in the marketplace. >> dr. miller, i want to ask you about the sort of the legal battle going on between express scripts and anthem and express scripts claiming it deservels more of the share of the rebates that you're acquiring from drug makers. does that imply that express scripts is in fact taking too much of that? >> yeah. so, anthem is a specific --

really special example. remember that we bought their pbm from them. we paid close to $5 billion for that asset. and so, we set their rates based on that. and so, obviously, that's totally different than any other of our clients and so anthem obviously doesn't like the rates they have but, again, they're the ones that took the $5 billion up front. so we love servicing anthem. we have a great relationship with them. we take great care of their patients and this is really something that's being fought in the courts and not sure i can comment much more on it. >> dr. miller, we really appreciate you joining us today. thank you. >> thank you for having me. >> back over to you. >> meg tirrell and steve miller. as mentioned, the shares of express scripts down 6% and expect to hear more out of congress and other avenues about scrutiny on the entire business as of today. >> the entire food chain, the stocks down today. kind of tells you people expect it to continue. about 18 minutes left before

the bell. we have the dow, s&p and nasdaq all very narrowly behind the flat line. we'll have first on cnbc interview of senator amy klobuchar calling for a federal trade commission investigation into the huge price increases in epipen. difficult to maintain a dynasty in sports today but the u.s. women's olympic rowing team just won the gold in rio de janeiro would certainly qualify as they've dominated the sport for years. the whole team joins us next. there they are. where, in all of this, is the stuff that matters? the stakes are so high, your finances, your future. how do you solve this? you don't. you partner with a firm that advises governments and the fortune 500, and, can deliver insight person to person, on what matters to you. morgan stanley.

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welcome back. the olympics are over but the victory tour goes on for the united states. especially for the women's 8 rowing team. >> back with the gold member and some of the members join us now on the floor here at the nyse. thank you for being here. >> thank you. >> thanks for having me. >> i feel short practically. >> well, i feel shorter. >> congratulations, you guys, on everything you have accomplished. >> thank you. >> lost amid the attention of ryan lochte is the fact you are on a tear in the sport of crew. how many gold medals at this

point? >> 11 now. >> 11. >> going back to -- >> 2006. >> talk about the team work to achieve something like that. >> hugely team sport and more than just when's in the boat. nine of us in the boat that have carried on the winning legacy but the people that did into it are -- i mean, like 30-plus people that help make the team as strong as they. more than just the members of the boat but all the women at u.s. rowing that carry it on. >> how about practicing together or the relays of track and swap in and out? >> on our team, on the u.s. women's rowing team, it is all women go everywhere all the time. i mean, the competitiveness is fierce and we all support each other and then you make the team stronger as a whole. >> how many of you sticking around and coming back? >> i think it's a little bit undecided. some people know for sure and some people take a break and then maybe come back. she might be going. >> i think i'm probably going to keep going. >> this one is. >> we'll see as the fall

unfolds. >> when you're done and eyeing the next national or international medal, you have to get right back in the boat? >> our coach gives us a little bit of time in the fall, especially post-olympic year and then it's right back to the grind pretty soon. >> give us a sense. how fast is the boat going at peak speed? >> caitlyn would know. >> 20 kilometers. >> we go in meters so in 500 meters -- you're looking at around 1:25. depending on the conditions. >> ideally. >> that would be -- >> a minute a kilometer. >> i tried to get on the rowing machine at the gym. it is not pretty. also wondering about your role in particular. it's interesting for people the know, you have your back to the water, they're driving it award. how what are you communicating? how are you able to keep people on course? >> yeah. i'm the only person facing forwards. they're rowing backwards and only one to see the finish line. >> yeah. >> i'm in the back of the boat

and facing fowards and really my job is to tell them how the race is playing out. how fast we're going. and then let them know where the moves are. and as long as i'm communicating clearly, and concisely, they're the ones that jump on the gas and do all the work. >> may i add, she loves calling more for -- more speed. there's never any doubt when she tries get more out of us, it's there. in her voice. it is in her energy and it's amazing. >> she never says take it easy? you got this? >> not at all. as soon as we cross the finish line, didn't tell us we finished. we kept going. >> i was celebrating. >> it's an education of what you have been up to. congratulations on everything. we hope it continues. >> thank you. >> good luck ringing the bell. >> thank you. >> we have to let you go. >> yesterday, this week, there was a little bit of a fail up there. no pressure. >> broke the gavel. >> no pressure. >> don't break the gavel. it happened once this week. >> really? >> yep, yep.

pressure's on. i think you can handle it of all people. thank you again for joining us. >> thank you so much. we've got just about ten minutes to go into that bell. the dow still down 35. s&p down 3 1/2 today. transports down 55. pressure broadly across the markets. janet yellen's speech tomorrow is a non-event according to amy woo. i asked my dentist if an electric toothbrush was

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welcome back. second down day here on wall street. we are on the floor with amy woo. good to see you again. >> thank you. >> you know, the markets had been kind of running in place for sometime. what do you think's happening now? >> unfortunately, the word of the day is complacency. less than a 1% move priced in for tomorrow's jackson hole conference, i would say is the catalyst right now. vix is low. option prices have been low. one thing to say is while all these stats keep telling us that option prices are all-time lows just remember that term structure is still steep and

skew is still high. >> there's a level of anxiety underneath and people pay up for protection a little bit and maybe brace for something like a bigger move. >> the biggest problem right now is when that will happen. there's an under current of uneasy despite the calm that we are seeing and you are seeing that in the future metrics priced into the options right now. >> you think the u.s. election could be a catalyst. is that so? rarely to see the vote itself. more people looking at the policies and both look like they could be expansionary. >> that's right. looking at the study of five past presidential elections you don't see much relationship between where volatility goes and presidential elections. i mean, i don't think it's hard to say that this is unprecedented in terms of the elections that we have had. and the other thing we have seen is, you know, everyone's looking at the polls saying it's a landslide for clinton, this and that. look at brexit. just think about the pricing that went into it and then the night before and what we wake up the. >> that's true.

although, if the market's pricing plus or minus 1% that's a move lately. thank you. >> thank you. >> we'll be back with the closing countdown next. after the bell, drugmaker mylan under fire of investors, consumers and congress. we'll be joined by senator amy klobuchar. her take as a legislator and a mother. that conversation in a few minutes. keep it right here. they may want the latest products and services, but they demand the best shopping experiences. they're your customers. and by blending physical with digital, cognizant is helping 8 of the 10 largest u.s. retailers meet their demands with more responsive retail models... ones that transcend channels and locations, anticipate expectations...

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welcome back. the dow down about 45. not far off the lows for the day. s&p 500 down. in the middle of the month-long range and only activity underneath the indexes today. health care sector is weak. mylan is bouncing a little bit today and the rest of the health care payment chain is under pressure. >> i hope you watched meg trying to explain how we pay for the drugs and how they get reimbursed. it is a confusing mess and instructive with the way she tried to explain that. so i'll tell you what the worry is talking to the traders today of yellen. she is not going to say anything really about tipping the hand. this is supposed to be about expanding the toolkit, an academic speech. may not say anything. traders saying if she says nothing, that in itself is important because if she wanted to move in september, she would

tip her hand. >> yeah. >> the absence of saying anything would itself indicate she is not going to perhaps do something. >> meantime, if you say september is off just about, december's almost too far in fed time for the market to really price anything in because things changed so much within the span of three months. >> in the convoluted world, you have dudley being hawkish. and you have fischer being hawkish and other one and the game theory world, her absence of saying anything implies nothing will happen and expect the vix to drop, back down to 11 probably on something like this. remember the longer term -- >> pent-up selling and doesn't seem like that's the case. >> this is all about gaming everybody else's attitude. by the way, russell people told me today that russell 1000 and 2000 consistently higher after the fed speaks. >> for years, once they say something most of the upside of the market comes in. thank you.

mylan was up earlier in the day and down and that sector under pressure today. ringing the bell, our friends from the women's olympic rowing crew up there. there you go. seems to have done it perfectly well. second hour of "closing bell" is all yours, kelly. they pulled it off pretty well there. welcome to the "closing bell," everybody. i'm kelly evans. down day here on dow as we recede from closing near all-time highs and still now had the high watermarks recorded about the middle of the month. august 15th, the dow dropping. the s&p down about 3, little bit less than that and the nasdaq down about 5 points to 5212. interestingly, it held up okay but there's pressure on the bio tech, pharma and health care spaces to talk about. coming up, joined first on cnbc by senator amy klobuchar.

we'll talk to her about her call for the federal trade commission to investigate the increasing prices of epipens as mike just mentioned. mylan shares suffering from that again today. cnbc's new markets commentator and columnist mr. santoli with us and stephanie link. welcome. cnbc "fast money" trader brian kelly. good to have you on board, as well. >> thank you. >> mike, health care was a best performer in the market an now i think risk of going negative year to date. >> it was a sector i think combination of growth and value and income. people can love it. bio tech had been leading the way down and now the rest of the whole kind of health care food chain joining it. yes, offset by everything else and seems like this market does. certain retailer douns. other ones are up and basically the market wants to absorb all these forces and do nothing until perhaps we get that fed move and right in the middle of

the month-long range and neutral condition. >> big moves on retail space today, stephanie. tiffany way up. signet way down and dollar stores whacked. dollar general down 18%. >> i know. i think that's the big story today. health care is very important, for sure. but i think the fact that consumers is an important part of the economy, 70% of gdp. we have to see and make sure that the consumer is staying healthy. on the conference calls of dollar general and dollar tree, it was not encouraging. dollar general talked consistently about the consumer and the struggle that is the consumer is having. particularly as it relates to higher health care costs. >> there we go. >> we have known that, right? we thought maybe better jobs, better gas prices would help and not seeing a trade-up. sometimes when the economy is doing better, their customer trades higher end. not seeing that either. really have to down and deep into this. these stocks great, great performers and that part of it

in terms of performance today and not cheap and keep an eye on the con surmer. >> brian, look at the price hikes they're allowing for obamacare exchanges and now we know that if you're going back to school, you spend as much on epipen as the clothes. >> right. and this is the issue that's out there with the consumer. as stephanie just said. add in to the fact not only health care costs going up and oil. oil significantly off the lows. through the summer driving season here. gasoline prices are higher. anything that cushions the consumer in the beginning of the year is starting to come off the table here. so you do have to be concerned. retail, it is so lumpy. you've seen great sales out of amazon and until you see amazon sales break, i think it's going to be hard to make a case against the consumer. >> all right. we'll come back to this in a moment. heather bresch speaking out this morning for the first time about the company's epipen price hikes saying she is reaching out to a number of senators regarding the

issue. >> the leaders, the senators, i have called all of them. i want to have a face to face meeting. price is one part of the problem. >> you do? a bunch of bipartisans senators like to speak with you. >> they haven't called me back to set a date. >> have you reached out to senators? >> grassley, klobuchar. >> reached out the them? >> personally. >> when? >> two days ago. i called them and said, i -- >> what have they said? >> i welcome the idea. they haven't called me back. i said, as soon as you can meet, i'm there. >> well, joining us now in a first on cnbc interview is democratic senior senator of minnesota, amy klobuchar who's now calling for a federal trade commission investigation of mylan. senator, thank you for joining us. has heather bresch indeed gotten in touch with you? >> oh, she has. i actually did call her back about -- within a few hours after she called me the night before and we have talked and we're going to meet. i do appreciate that they've

done something to make it a little less hard of a hit on consumers with the assistance that they're giving now but i don't think that that fixes a systemic problem that we are seeing across pharmaceuticals where the top ten drugs in america, four of them have had over 100% increases in just the last few years. >> we'll come back to that in a moment. i don't mean to turn it into a she said/she said, but to understand, if she reached out a couple of days ago, you had a conversation, you have a meeting scheduled? that was all before this morning? >> yes. actually, yeah. i hate these kinds of things. what happened was she called and then next day i did call back and then we had trouble setting up a call and we spoke today and really, i really don't think that's as much the issue as helping americans get better prices on pharmaceuticals, getting more generics in the market and also trying to -- my bill with john mccain to allow

some cheaper drugs, safer drugs from canada to create some competition. not to mention allowing negotiation under medicaid part-d and harnessing the marketing power of the seniors for better deals. >> it is fascinating what's happened because you were a co-signer for the deal for epipen into schools and you have some personal experience with this. so, how's it now that you have ended up going from a sense being a partner of mylan's to make this legislation happen and get these epipens in schools to now being in many ways an adversary? >> okay. let's go back. i think having most doctors would agree that you want to have these -- this kind of drug in the classroom. it's life saving. my own daughter has severe nut allergies and has one of these with her all the time. we don't need that exact company providing the drug. my wish is that there would be a

generic alternative, that there would be a competitor. one recalled, one has been delayed in approval and that's why we're calling on the fda to get a generic approved. my view, it is not that it has to be this company's drug but it has to be this type of product that saves lives. that's number one thing. number two, my view is that we need to change things so that we bring the prices of these drugs down. you look at not just this product, but across the board, we have seen enormous increases that are making it tougher and tougher for consumers and i believe that we need to pass some of these bills. i do not understand why we cannot have negotiation of prices under medicare just like we do for the va. i do not understand why generics and the big pharma allowed to make deals to keep products off the market, called pay for delay, and senator grassley and i have have a bill to stop that. i challenge my colleagues to vote against a bill like that. and finally, mccain and i think

we should bring in cheaper products from canada. that would get competition doing going in this market instead of the mo knobbly power we see in so many drug lines. >> so, this morning, one of the comments from the mylan ceo was she said people in washington don't understand what's going on. it sounds like you're trying to lay out a number of ways to get at the heart of this issue. from your point of view, if you're going to change these price increases overnight, even though doing those reforms to medicare an things you mentioned would help in some aspects seems like there's nothing to keep a company apart from the media scrutiny of being able to do what we have seen a number of times. >> well, exactly. you don't want to have the only way to get drug prices down is have public outcry and people like me go on tv. there's better things that people can watch. and so, what i think we need to do is, number one, you do go after bad actors and we have the

ftc and anti-trust of the justice department. that's why we have the senate anti-trust subcommittee of which i'm the ranking member. we have had instances including some of the pay for delay deals where the ftc gotten involved. as you know, just having raw market power and price gauging is not enough to trigger the anti-trust laws. you have to show that this company is using that market power in some way by colluding, by entering contracts that keep competitors off the market. so that's the enforcement piece that must be in place and strong but changing some of the rules of the game to allow for more competition in the market is clearly the way we approach this systemically. >> is it clear to you that mylan has been a bad actor? >> i don't like what mylan did. i've made that very clear the last few days. i'm glad they have made some advance toward making it easier for consumers to buy them. i think they're too high priced. >> what further action, i guess we're expecting a senate hearing

on this issue. senator, but -- >> we like to -- >> up to the -- yeah. >> that's up to the senator grassley, senator lee and i do hope we have hearings but what i would like to see is votes on the bills sitting out there for years. they have bipartisan support. i'm one of the leaders on all four of them. and i can tell you it would make a major change passing those bills. we would see competition in the market like we have never seen before. >> senator klobuchar, thank you for joining us at this hour. >> thank you. >> what do you guys think? >> i mean, i think you can sort of chide the company without necessarily saying the company is doing anything wrong and use it as an occasion to see what where along the chain, the incentives lies, kind of all the friction points and i think the hopeful thing is maybe that happens opposed to this is a storm, it kind of goes away. and then we wait for the next one. >> if this is a catalyst for the

changes she brought up, they would be major, major changes and some of which would put continued pricing on the health care system. >> sure. i don't think it's that easy to make the changes implemented. hillary clinton couldn't get the ideas she had in the early 1990s. so i think it's going to take time, a process. but nevertheless, it will be an overhang on the sector so from an investment point of view, you're not going do get multiple expansion at all. even though there are just a few players doing these kinds of things, most of the other companies are kind of doing maybe highs and mid to high single digit price increases and that's kind of legit i think but nevertheless you will see a lot of pressure on this sector as a whole and keep that in mind investing. >> not just the drug companies, managers, the whole space. game stop is out with the earnings. let's get susan li on the numbers. >> world's largest retailer of video games. not a great report card for them. eps pretty much in line.

earning about 27 cents, adjusted per share in line with estimates. but here's where it goes wrong for them. revenues missing in the quarter. $1.63 billion they made and $1. 72 billion the street was looking for. comps, the street looking for a range of guidance to be down maybe 4% to 7%. gamestop put in comps down over 10%. in the quarter. and i guess video game publishers have been pushing a lot of selling and the gamers to buy the games on the consoles instead of physical video game retailers like gamestop and seeing the decline, really the -- right now, the weakness in the business. back to you. >> 10% drop in those same store sales. thank you. brian kelly, what do you think? >> i think that four times a year i'm reminded that gamestop exists anymore. >> hey. >> listen. i mean, i thought for years i thought it's the blockbuster of the video game thing.

i'm wrong because they still exist. perhaps now maybe starting to see the cracks in the business but the big trend is going to buying the games off the consoles, not going to the stores. >> one of the exceptions to the struggling retailers is ulta. >> think there, kelly. we have a very good quarter of ulta and shares down after hours so let's take a look. for earnings per share, $1.43. the street looking for $1.39. so that's a beat. turning in better than expected revenues, $1.07 billion. the street looking for $1.06 billion. comps up 14.4%. the street looking for up almost 13% and it still beat that. gross margin stronger than expected at 36%. e-commerce grew 55%. and salons, the sales of the salon and you have to go in to the store to have those services performed, up 14%.

the earnings guidance for the third quarter is a little bit light giving a change of 125 to 130 and the street looking for 129. but the revenue guidance is a beat for the third quarter and so is the comps. ulta raising the full-year ea earnings and looks like a good quarter. maybe this is priced in. shares are down almost 3% after hours. kelly? >> yeah. exactly to that point. ulta is one of the beloved names. an exception to the rule lately. >> up over 40% on the year. trading at 50 times earnings. can't just kind of guide in line and trading in that kind of valuation metric. i would say this. estee lauder reported very well last friday. it sold off. this segment is very, very strong. continues to be very strong. you get the opportunities. buy down 4% on the news. probably buy this one. i want to look into the details and probably buy this one, too. >> a 3% loss after after hours

is heroic given it priced going into it. not only up 40% year to date, up 30% in the last 3 months, doubled in 12 months or last two years, rather. basically the one area of people felt to bank on so it seems like if you say high teens, top line growth for the fiscal year. i think the street 19.5%. that's as high to get and stay in the teens. >> 11% guidance for comp and probably sandbagging that, too. i take that any day, any retailer especially with the dollar stores. >> brian's got to make himself look good for the selfies. right? >> exactly. i'm surprised at this. i buy my hot oil treatments at u ulta. that's a big item. listen. i think they're right. this is a huge performer and this is all about sentiment in the stock. right? so you had a really knock the cover off the ball. they did good. probably like a sell the news type of event. >> indeed. all right. thanks for joining us, brian.

we'll let you go. there's much more with brian and crew next hour on the overage of the epipen price hike and represent doggett's response with a lot to say about bresch's interview this morning. uber valued around, what? $69 billion. but the ride hailing company lost uber amount of money in the first half of the year. more than a billion dollars, in fact. we'll discuss the mounting losses. mylan labs scaling back the massive price hike for epipens after outrage of parents and politicians. we'll discuss why so many drug prices seem to be out of control and which may be the next target of the outrage. you're here to buy a car

welcome back. we have another earnings alert here. susan? >> let's talk about peer storage and rocketing up after hours and better than expected results for the flash memory maker. so pure storage earnings betting estimates on adjusted basis. a loss, narrower than what the market was looking for. 16 cents the loss for the quarter versus estimates and treat calling for 23 cents. revenues beat, as well.

pure storage, 163 million for them versus the call for $155 million. this is hot ipo last year and looks like the stock up in after hours. back to you. >> in this case, rewarding the losses still up 11%. speaking of which, ride sharing start-up uber reportedly lost $1.27 billion in the first half of this year, losing about $520 million in the first and $750 million in the second quarter according to reports. last year, reportedly lost $2 billion. for more, bring in tony khan and tamara warren. everybody's down here at post nine. tony, welcome and these are huge losses. they're because of their driver's being expensive. that's a problem that's around for a rigwhile. right? >> absolutely w. the companies, the decacorn era, we had one. today uber leads the top of

that. you're only expecting competition. lyft, fasten. reacting to competition in the spis. >> i don't want to make it sound like the drivers are demanding too much, the cost is high for what they pay out versus keeping as a company. does any of that change? >> not at the moment. drivers subsidies are a huge part of uber's business now and what they need to invest in and continuing to see losses going forward because this is an expense not going away and why uber's investing in self-driving cars. >> i was just thinking this explains the karn give mellon self driving type thing. the move in pittsburgh and two people in the car for the time being. >> yes. >> i guess the question is between now and then does the scaling work? i mean, is there a certain level, size of network where all of a sudden economics change in uber's favor, tony? >> clearly, clearly we have to see the pendulum swing. the real question is approximately $10 billion in

cash and cash equivalency, $8 billion in cash, sale in china and that runway, will it be enough to start swinging back to a quality of revenue to start getting back to profitability? which they have demonstrated before. >> do you think the subsidies have to increase from here? it's about 30% right now. taking from each driver. do you think it has to increase substantially from here? >> i think for some period of time, it is a price war with the competition that there will need to be subsidies, the marketing, form of other things to make drivers incentivized. ironically, what made uber strong at the beginning, independent drivers, strength and weakness. now they have a choice of a voo variety of options. >> in the united states there's a big play by lyft and uber said publicly they want to own this space even if it costs. >> owning the space mean

essentially eliminating sflift can they survive or thrive with a strong number two come pet por? >> i mean, i think it's really remains to be seen and other companies investing in lyft like general motors with a big stake in the future of lyft. this is unchartered waters coming into this ride sharing space. >> yeah. >> mike, i think one of the things to be interesting in this gig economy is how long does it last? and the spaces we have invested in, companies trying to do the same thing, nail salon space or other arenas, we have found you must own the supply side and at least full-time employing some proportion of that employee base. >> fascinating. thank you again for joining us. tony, tamara. we should note that verge is part of fox media with a content sharing partnership with nbc universal. the fed with the annual symposium in wyoming. just like last year, the protesters, too. we'll hear from the members of the fed up coalition and to keep

the rates low. td bank reporting better than expected earnings on strength in the u.s. retail banking business. find out how the bank is growing the bottom line in the low rate environment speaking to the company's ceo coming up.

welcome back. symposium in jackson hole, wyoming, kansas city fed president and dallas fed president already advocating for higher interest rates and not

everyone wants to see a rate hike. steve liesman joins us with members of the fed up coalition. steve? >> reporter: yeah, kelly. i think this is our third year covering the fed up protest and so i'm here -- actually, very pleased to welcome audi barkin and derek lainny and the t-shirts represent the two pillars of the protest. one is to keep rates low and the other is for more diverse representation. i'll start with you. a lot of guys on wall street who are our viewers and investors look at the campaign saying, what? keep interest rates low forever? they have had them long for a long time. if not, the real protest out there at least from our viewers is, hey, time to raise rates because you're going to create bubbles in the economy. >> so i think that's a fair question. thank you for having us on. do americans think that we should have fewer jobs and lower

wages? because let's not mince words, right? the fed uses complicated language. that's an interest rate hike is meant to achieve, reduce the jobs created and put downward pressure on wages and that seems to us -- >> i'll push back. americans think we should have low inflation and worry about inflation spiking up on the '70s in this country. >> that's fair enough. we have had inflation below the fed's 2% target for the last eight years. 2% is already a low target. john williams talking about a 4% target. we have had inflation below target for ten years. we have had unemployment way above target and crazy to intenti intentionally slow down the economy. >> why protest the federal reserve out there keeping rates down near zero for nearly nine years now? >> the thing is we are talking about the living experience of people. we are a coalition of black and brown folk, working class people and the fact of the matter is that the recovery has not really caught up to those communities. we have seen the down tick in employment numbers.

but still black unemployment twice that of white unemployment and the quality of the job has come back, the quality is not the same. a lot of part times, temporary workers and we think that it's not the time to put the brakes on the economy. >> just for the record, we are showing footage of last year. you were out. nobel prize winner of economy was with you. you're talking about diversity, pointing out there's a lot of whites on the board of the federal reserve. >> yeah. i mean, the diversity issue is important to us because out of the 12 federal regional bank presidents, two are women and only one is a person of color. out of the 12 people and the majority of white men. all, you know, and we just think that that's not representing -- >> you have a book there. hold it up. >> doesn't reflect the diversity of america. >> those are people you think to quality as members of the board of direct or thes. >> slate of 39 people. >> you have a lot of funding from facebook or co-founder --

former founder of facebook, right? for your group. >> yes. >> i want to -- you guys really have gone from a small protest to now you have a seat at the table. i mean, you are meeting in about, what? a couple of hours now. >> yes. >> with eight federal reserve presidents and or governors. >> right. >> how does that feel? >> i say what it feels like is feels like we're making progress but -- and we have also met with each of the regional fed presidents in the respective cities and mindful of not be confused with progress. we are here for action by the fed. >> we think there are a couple of things to do. >> real quick last thing. >> they can appoint a more diverse set of governors and presidents and boards of directors around the country and full unemployment under the legal mandate for all communities and americans for higher wages and better jobs. >> okay. ady, laney, thank you.

tomorrow, two fed presidents. bullard, coming up at i think that's 7:30 eastern time. i'm confused and loretta mester up at 8:30. kelly, back to you. >> all right. steve, thank you so much. what do you guys think? >> it's remarkable the federal reserve considered to be a central force in the economy and just such a known entity out there that, in fact, it becomes an object of this kind of, you know, pressure. >> yeah. >> there was a time nobody had an idea. they were an invisible force and didn't announce what they did with interest rates and here we are. considered to be the one thing to make or break the economy. whether it's true or not. >> we haven't physical policy in forever. it is all on the fed, unfortunately. and there's only so much that they can do and their messaging is so insceconsistent. so it's just a very confusing time.

>> by the way, that's exactly probably the conflicting message from that pair of interviews tomorrow morning. >> sure. >> looking forward to, though, hearing from them. let's get back to sue herera. >> thank you. here's what's happening at this hour, everyone. senate majority leader mcconnell said the senate will not vote for the president's signature trade deal this year leaving it for the next president to consider. a 35-year-old co-pilot arrested at the traverse city airport in michigan after police say the blood alcohol content four times the legal limit to drive a car. police say the pilot suspected the co-pilot was drunk and called officials. more than 52,000 units of m&m's branded jewelry is being recalled because the pieces contain high levels of lead, all the jewelry at m&m's world stores between 2015 of may 2015 and june 2016. at a festival in mumbai,

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welcome back. it was another down day on wall street and slightly. s&p down 3. dow down 33 and nasdaq down little more than 5. the big story has been mylan. the company's ceo heather bresch speaking out this morning to our brian sullivan defending the controversial price hike of the epipen drug. >> this isn't a epipen issue.

this isn't a mylan issue. this is a health care issue. when you walk up to a counter, i think that it's fair to say any time you're shopping for anything, you know what that product's going to cost when you walk up to the counter. only in health care and in this instance pharmaceuticals do you walk up to the pharmacy counter, could have paid $25 yesterday and paying $600, $1,000. deductibles overnight, when's coming out of a patient's pocket went from $100 to $3,000. >> our meg tirrell joins us with a look at what other price drug hikes could be causing anger in the future. hi, meg. >> capturing the public's attention now epipen and then valaent and before that turing pharmaceuticals. the industry brace dos see if it spreads to more expensive branded products. a note today out of bernstein saying, quote, to be fair to

mylan, the pricing action is aggressive and not different from the action of others. both in the last two years, for example. take a look here at data showing the top pharma products in 2015 by revenue. you've got harvoni. humira for arthritis $15 billion. lantus at $11.5 billion. research shows that the u.s. list price at least of humira doubled since the list and bernstein pointing out increased a lot in the last two years. so, the question becomes, is pricing pressure on those kinds of drugs which the drug industry says are a lot more innovative, they put r&d into and brought to the market? you can see the price increases on humira provided to us by cow cowen. the concern is it guess into the

drugs supporting pharmaceutical companies like an abvie, for example. >> it's not just companies themselves. you were trying to show people it's really the whole system that was benefitting from this price inflation. not only which drug companies are next but pharmaceutical companies and pharmacies themselves. i mean, pbms and other pharmacy themselves under pressure here. >> right, exactly. everyone along that matrix where the mylan put out there today, right? they tried to say that there's the points along the way. people taking a toll. when's interesting is now that we are at -- i'm sure congress staffers are going through the process. i think that's maybe the hazard. on the other hand, i think epipen is unique product in many respects and whether that is an argument that kind of carries a day or not, i don't know. but the fact that it's really not a product of research r&d of mylan and seems look it's an annual thing that parents have to buy as a precaution. it's not certain people who have, you know, chronic

condition, for example. it's just to me it's one of those things occasion for scrutiny. i don't know if it leads anywhere looking at the hmos and pbms and hit on the news after the mylan ceo spoke and pushed on them a little bit, i think it's important to see their margins because they're not making a lot of money on this stuff at all. and once that comes out, it's a little clearer that this was a mylan kind of specific issue. yes, i think the product is unique, for sure. and you have to remember that bio tech and pharmaceutical and health care industry is all about technology and innovation and r&d. you have to have price increases. you just can't have the extremes and a happy medium out there. i think. >> and it does cost more in this country where a lot of these -- >> funding for around the world. >> yep. >> right? so there's a lot of puts and takes here. >> a lot of layers like a pile of nachos. thank you, meg. up next, td bank beating

street expectations saying the worst of the oil and gas decline could be over. we'll break down the earnings. also still ahead, the weather is everywhere and seemingly so are weather apps. eric chemi will rain on the accuracy of some of those loved apps. stay tuned. me, using a wrench to build a jet engine. well we thought ge programmed machines to talk. ge is an industrial company that actually builds world-changing machines. machines that can talk to each other digitally. hello? they don't talk to each other like that, ricky. shhhh, you'll anger it. he looks a little ticked off now.

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shares of toronto dominion bank bounced around after news it beat expectations. citing growth in the u.s. retail business as a reason for the strong showing. joining us is president and ceo of td bank group. welcome back. >> thank you very much. thanks for having me, kelly. nice to see you again. >> you know, especially in light of dramatically different results of retailers this morning, dollar general down 18%. we had yet, you know, some other parts doing okay. best buy, for example. what is your point of view on what's happening with the u.s. retail consumer? >> well, i think there's lots of things going on, on the retail side. you have the advent of the online shopper. you have all these choices. you have sluggish growth in parts of the country and robust growth in the other parts of the country and combine all that, i think you are seeing that play out somewhat. but overall, i think the consumer's spending numbers in

the u.s., resilience sy of the u.s. consumer is quite solid and as you pointed out, you know, u.s. business, td america bank had a record quarter. we generated double digit deposit growth. sorry. loan growth and good deposit growth, as well. >> could you talk about when's happening with millennials specifically? because there was some new home sales data very strong here the other day and there's a sense that maybe as a cohort of millennials are into that market. you mentioned your loan growth and that kind of thing. what do you think is happening with that age group? >> well, there's a lot of research out there. all i can tell you is that right through our franchise, all the cohorts we are looking at are quite strong. you know, we can see that the inherent growth in the u.s. is really, you know, here to stay. that's our view. and we are seeing that in our numbers. with respect to that particular

cohort, yes, you know, we are providing all the products and offerings that make sense. our online offering is second to none. my view. so i think we are responding to all the challenges and all the differences this each of these cohorts de&. >> the housing market is probably more dramatic in canada, shocked to hear about the price increases in vancouver and when's happening with the housing market? >> without a doubt, there are pockets in canada, especially in greater vancouver and to some extent greater toronto where price rises have been, you know, quite dramatic. and there have been new policies introduced by our, you know, what i call the federal regulators of canadian banks, and ensuring home purchases. bc government with a particular tax for foreigners to participate in the real estate market. there's been a lot of policy

moves to see whether, you know, this is sustainable or not. but with respect to our bank, you know, i feel that this is under control. you know in we have a particular home financing regime in canada that's a lot different than the u.s. >> yeah. >> for a canadian bank, non-insured mortgages you need 20% down payment. so i feel generally good about it but it's an area we are watching, as well. >> all right. it sounds like having moved through some of the oil and gas trouble this is's the concern is what might be next behind that door. please come back. thank you for joining us this afternoon. >> thanks. thank you for having me. good to see you again. weather bug, weather channel, weather 1. if you have pondered whether or not to download a beth app or which is most accurate, we'll give you a blow by blow breakdown of the best and most popular weather apps. stay tuned. : the best place to find adventure... kubo: come on, this way. narrator: ...is in the forest. kubo: wow.

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welcome back. the world is filled with thousands of weather apps for mobile devices, and sometimes the difference between forecasts can be the difference between snow and sunshine. here to with a look at the most successful weather apps is eric chemi. >> reporter: forecasting the kieswetter is a business worth billions of dollars and we ran the numbers to see which weather apps would take home the gold. we dug through the data of eight different weather service. look the a predicted temperature and range across the entire nation. we handed out medals in best in temp, best in rain and best overall performance. with the help of data provider forecasters the data is in.

for predicting the temperature it's accuweather that gets the gold. it gets within three degrees of the actual high or low 70% of the time. coming home with the silver it's the weather underground and then it's the weather channel getting the bronze. next up rain. the weather channel gets the top spot correctly predicting rain or no rain 84% of the time. taking home silver and bronze, weather underground and media group, and for the most coveted title best all around weather service, the nod goes to the weather underground. they had the highest average accuracy overall, and it was the most accurate on rain and temperature in the most locations across the country. but there's one big caveat. while the weather underground does win the all-around title, it's actually only number one in 33% of america's zip codes. that means in two-thirds of the country one of the other seven apps is actually bet. our data shows finding the best service for you really depends on where you live. sailing yachts in miami, the media group is right for you.

hollywood and worried about rain impacting your tennis game, then you need to check out dark sky. climate patterns differ widely across the country and the fancy math weather services use are good in some locations but sometimes not as good in others and while there should be one best weather service for everyone to use, finding the one that's right for you is actually just as tough as predicting the weather. >> so we tried to find making -- we tried to make finding the bit's easier. there's a link so you can find the service most accurate in your area and then you'll know exactly what's best. >> did you do it for new york? >> i did it for new york. >> and? >> new york is big. new york has a lot of zip codes. new york city is a giant thing. it's got more population than a lot of countries winning medals in the olympics. >> 300 square miles. >> mike's always got really good details like that. >> but now it makes sense a little bit more why ibm bought

the weather company. >> part of their watson strategy, big data. one thing to have weather at our level, but if you're an airline, if you're a train company or whatever, you need specific details about exactly what's on your route so they pay big bucks. like a $2 billion acquisition that ibm bought. >> i'm just wondering about whether underground. not as familiar with weather underground. >> started as local people in their homes having a little weather stations, a lot more stations than the normal nws service and ibm owns weather underground and the typical weather.com, but the weather channel on tv is not the same company as the weather.com that's known as weather channel that's owned by ibm. >> because they split. >> different companies with licensing agreements. >> reminds me of the google ways things. i thought ways was in google. dark sky was one that came on the scene and was supposed to be the superior one. only heard you mention it once. >> they don't use people. the weather channel has a lot of meteorologists that actually look at the data and have real

people, real analysts that say here's what the forecast is going to be. dark sky is basically three people with their computers in their algorithms, and everything they do is all driven just on machine learning so it's a different approach to how they are telling the weather. >> i finally found the story on our website. it took me this entire segment, but, however, hang on, we're going -- we're going to put in the zip code, and we're -- i don't even see where to do it. >> cbs.com/weather dash app. >> has its own thing. >> i'll do that in the break and share the results with everyone. eric, thank you so much. >> got it. very complicated. that's the key. >> i see that. a lot of data crunching here. american retail remembers not sleeping on it when it comes to a possible bedding scandal. three more chains following target's lead in investigating the egyptian cotton sheets controversy. those details next. hey gary, what'd you got here? this bad boy is a mobile trading desk so that i can take my trading platform wherever i go.

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companies has been supplying u.s. retailers like walmart and target with phony egyptian cotton sheets. maybe we should have known they didn't just come at a price of 10 or 20 bucks for a sheet but that said it was actually in target's internal investigation that kicked this whole thing off. >> amazing. are the thread counts accurate? has anyone gone to actually count the threads and all the rest of it. i thought it was more a more generic term. apparently it has to be sourced there. >> this company, really staked their reputation on it. they were certified by this and representative of that, and so it seemed like, okay, if you deal with this supplier then at least you're fine and now that's clear that that -- and i think they used dna testing on this. >> my gosh. >> also like the technology today is so detailed, right, and they can make it feel just like egyptian cotton without it being egyptian cotton so it's very confusing how the whole thing is performed, so it's sort of interesting. >> though the analysts or experts on this i was reading about said you can't

differentiate between egyptian cotton and the other long fiber stuff once it's all woven together. will bring together a lot more scrutiny. brooks brother sells egyptian cotton shirts. >> something with olive oil, right? take olive oil from different places and blend it together and call it italian olive oil. canadian bacon, is it really canadian? >> opening up pandora's box. >> english muffins. >> which are delicious no matter where they come from. strong performance coming off a little bit after its results and maybe a weak guidance, again, relative to expectations. it's down about 2% at this hour. >> yeah. mike made a great point before. being down only 2% after the run that it has had is pretty -- is not so bad. >> about a week's worth of gains. >> past week it was up that month. >> this is still the trend in consumer where you want to be. >> despite mike's, you know -- >> patronage.

>> thank you. >> of game stop. >> now and then. >> comps were down 10%. >> they fight a quarterly bat. the trend is against them and try to make it work three months at a time. >> a couple of names to keep an eye on, jackson hole tomorrow. mike and stephanie, thank you. that does it for us. "fast money" begins now. "fast money" starts right now. live from the nasdaq market site overlooking new york city's times square i'm melissa lee. traders are steve grasso, karen finerm finerman, david sieberg and brian kelly. tonight we're all over the story captivating the nation, and mylan firing back over its epi-pen price hike and a serious cause for the concern. the one chart that may be signaling the rally in stocks could soon be coming to a screeching halt. later, one firm is betting the house on a rally in netflix. we'll take you behind the call that says netflix is set to surge another 50% higher from here. first we start off with the fed chair janet yellen hours