you can see a stock here, sharply the u.s. -- the company u.s. steel symbol x is higher by more than 4 has. we've seen the steel stocks doing very well over the last couple of weeks because of this situation. >> also says apparently he would invite putin to the white house, but, quote, now is not the right time i'm sure "closing bell" will have more on these developing headlines. >> starts right now. welcome to "closing bell," everybody. i'm kelly evans here at the new york stock exchange. >> and i'm bill griffeth financials have been leading the way today ahead of the bank earnings that we're all expecting tomorrow we've got a debate on how rising deposit rates could impact the bank's outlook wouldn't that be a -- when was last time anybody raised a deposit rate >> other than goldman trying to get out of -- >> yes. >> not recently. fed chair janet yellen testifying again today including your two-day appearance on the

hill some investors are saying it's more about what she did not say than what she did. we'll explain. meantime, united airlines is unveiling a new program to avoid upset passengers on overbooked flights. wait until you -- this is actually a good idea. >> i love it. >> a great idea, and we'll outline it for you coming up. >> but we begin today with senate republicans unveiling a new version of the health care bill, including offering plans with less coverage, the skimpy plans, quote, unquote, and keeping some of obamacare's taxes. kayla tausche has the details. kayla? >> reporter: earlier today the senate majority leader said that the draft that came out today will be scored by the congressional budget office early next week and after that point he hopes to bring it for a vote on a motion to proceed. that is where senators will say whether they think it should move forward, be amended, have changes be submitted by colleagues on both sides of the aisle and then have a vote on a final draft, but we are getting some sense of exactly where this vote could stand right now

there are two hard nos from senator susan collins of maine and senator rand paul of kentucky, but there are about half a dozen undecided who said they either need to read the bill further they want to talk with exactly changes could be coming and talk to their constituents about whether this bill makes wholesale changes far enough to actually win their support there are some tweaks to medicaid, but they change the calculations they don't necessarily change outright and say the year that a transition would happen or the inflation peg that it's tied, to and then there is a change that allows, as you just mentioned, sews schismier plans to be sold. so if an insurance company offers a plan that complies with the affordable care act exchanges, it can then sell plans that don't comply, but a letter from the insurance industry's lobby said that would threaten the stability of the overall market that would create adverse selection from people who have pre-existing conditions and

won't create broad-based enrollment to bring costs down the way we want. we did see a tweet were senator collins of maine saying there are still deep cuts on medicaid and will vote no on the motion to proceed and is willing to work with any colleagues to make any changes to help get a replacement off the ground here or to fix the aca, in her words in, that tweet, so we'll see exactly how support either coalesces or doesn't but it's clear that the senate majority leader wants a decision on this in a matter of days. guys >> it seems like -- it feels like the count is what we're watching most closely right now, kayla, to see if it's, you know, one or two, maybe three senators right now expressing some opposition or whether it -- >> it have two nos so there's no wiggle room right now, and i heard lindsey graham was reaching out to the democrats hoping that maybe some of them with these changes would come across the aisle, but i doubt that's going to happen, don't you? >> reporter: potentially, but senator gram and senator bill cassidy of louisiana this morning rolled out a proposal of

their own to funnel about $110 billion from federal funds directly to the states let them create their own insurance marketplaces because they say vermont might want single payer but some place like south carolina might want a more stable private market for their citizens, so certainly that's a little bit of a wrench being thrown in the mix here as this situation becomes even more complicated as it heads to some sort of conclusion perhaps next week, so we'll see, but certainly there's a lot to figure out here, and there's certainly a lot of senators who really want to sit down with the bill and figure out exactly what's in it and exactly whether they can support it. >> all right kayla, thank you kayla tausche there at the capitol. let's talk about this with dan haller and zeke emanuel, chair of medical ethics and health policy at the university of pennsylvania his new book is called "prescription for the future." gentlemen, thank you for joining us dr. emmanuel, just on first blush, when i see that the

medicaid cuts are still in place on one hand that's not going to please the moderates and, on the other hand, the taxes, the obamacare taxes are back in again. that's not going to please conservatives, so what do we have here, do you think? >> well, first of all, in a large measure this bill is actually worse than the previous version because the cruz amendment actually destabilizes all the individual insurance markets making sure that healthy people stay out of the exchanges having only sick people in the exchanges, actually going to drive premiums sky high. it's going to be a much worse bill i would also note that on your list you did not have as undecided dean heller from nevada up for re-election and he depends on -- he's going to go with what his governor says who is very heavily dependant on the medicaid expansion and who has been against this bill, so i think mitch mcconnell is not doing well, and if only one more

senator goes, you'll then see ten more senators vote no in the safety of not being the one who killed it. i think this is actually going down. >> dan, especially now that they are going to rethat inthis investment tax, do you guys support this legislation do you think it should be passed >> yeah. i don't think anybody thinks that this is the bill that republicans campaigned on. this isn't a repeal of obamacare, not a sweeping replace but from our vantage point it's an improvementment over the current system. what you have to understand is what obamacare said, hey, people who like your health insurance, we're going to mess around you, put a bunch of regulations and taxes and restrictions on you and give something else to somebody else, and the problem is that you messed up the people's plans that they liked, and what we're seeing now in the revised bill with the cruz-type language is there's going to be more choice and more competition and more options for individuals who are buying on the individual and small group markets. we're trying to restore that through this plan. that's a good step it's not sufficient to fix

everything that obamacare broke, but it is a step in the right direction. >> can i just clarify. >> go ahead, dockor. >> can i just clarify one thing. the more choice you have, you can not have choice and the pre-existing disease exclusion so that people with cancer or multiple sclerosis or rheumatoid arthritis can get insurance at a same rate as everyone else if you want to have the pre-existing disease exclusion, can you not give unlimited choice to people because then the healthy people are going to choose to be out or get skimpy plans and the whole system collapses. >> this is fundamental problem. >> behind the rhetoric of choice is a total undermining of the system. >> dan, what do you say? >> this is one of the problems, right, is that folks on the left and dr. emmanuel, too, are saying it's not okay for individuals to have choice, the type of choice they want when it comes to health insurance. they can have choice, sure, defined by whoever is in power and writing the rules at hhs but that's not actual choice

that doesn't create competition. it basically says 535 members of congress are insurance commissioners. if you want to be an insurance commissioner, go back to your home state and run for insurance commissioner don't try to federalize everything and take away choices and options for the american people. >> here's the problem. my patients with cancer if we have the system that the heritage foundation and rand paul want will not have any choice because they will be denied insurance or the premium will be so high they can't afford it. that isn't choice. that is simply leaving people destitute because they can't afford health care and vulnerable to the system that's not choice to those people at all. giving choice to the healthy people who don't need insurance and not to pay actually leaves people who are sick really vulnerable. >> dan, what about that? >> i mean, again, the presumption here, and this is -- this is what we see from washington, d.c. all the time is that the people in washington can micromanage these things and do it well, and what we're

saying is what heritage is saying and what you're starting to see come through the process in the house and the nat is the that we're going to make sure we restore choice and we're also going to make sure that states have the ability to regulate their health insurance markets again, like they have in the past obamacare took that away from the states this is simply giving it back. >> if i may. >> and go run for state level office and vote there if you want to make the decisions >> if i may, let me get to you address specifically what dr. emmanuel was talking about, people with pre-existing conditions, cancer or parkinson's, whatever it is, they end up with the sky high premiums if they are denied a regular policy, right? >> well, i mean, i think one of the things that you see in the bill, and we're still going through the bill obviously, but one of the things you see in there is there's a lot of money flowing to states to prop up what basically becomes high-risk pools, something that a lot of health care scholars have talked about as a way to deal with the chronically ill, people with pre-existing conditions. states use them a lot before

obamacare so this is not necessarily anything new and we're transferring that authority back to the state instead of having it tall here at the federal level. >> the high-risk pools were a uniform failure. we did have 50 million people uninsured. the affordable care act got 22 million more people covered and without changing medicaid that's at least this revised bill has at least 15 million people thrown off of insurance and probably more. that is not a good plan. >> to dan holler's choice, there is more money in this, since they are keeping the obama taxes in place, there's more to put back to the state that would help the insurance companies and the other -- and the hospitals to be able to treat those people with those high-risk pools, right? >> and we know. >> so there would be -- that would be a positive, wouldn't it >> this bill is adding $100 million over ten years $10 billion a year over ten years in a health care system that's $3 trillion

that's nowhere near enough money. it is simply a band-aid to buy off particular people who are worried about the high-risk pools. we know that you need at least 25 billion or $35 billion for the high-risk pool to even have a chance of working. this is totally inadequate as is the amount of money that they are giving for the opioid endeckic, $45 billion over ten years. the president's own commission on the opioid epidemic says you need at least $220 billion, plus they are giving it in a totally inefficient way. these are not -- they may sound like big numbers, but over ten years they are very tiny numbers in a health care system and they will not address the problems of the fact that cancer patients will have super high premiums and people with other diseases or the elderly -- older people, over 50, are going to pay more in this, not less. this does not address any of the affordability problem. >> we have to go at this point thank you both for your time on

an incredibly important topic right now. >> thank you. >> thanks for joining us we have breaking news on fan duel and draftkings. kate rodgers, tell us. >> the online fantasy sports companies are saying they are going to terminate their merger agreement. there were antitrust concerns from the ftc about both companies joining forces of both of the ceos have very similar statements out right now saying it's in both of their companies' best interests to terminate this merger agreement and move forward as independent conditions once again, fandowell and draftkings announcing they are terminating that merger agreement. >> kate, thank you. fed chair janet yellen talking rate hikes and inflation during senate testimony today. steve liesman here with the highlights. >> reporter: it's what the fed chair janet yellen that didn't say that caught everybody's attention. yellen did not go back on her fairly dovish comments before the house on wednesday she left that view intact, an

here's what she said today about inflation. >> we've had several months of low inflation readings, and we're focused on trying to understand it, have felt that it probably remains prudent to continue on a gradual path of rate increases, but it's something we will watch very carefully, and i want to emphasize that monetary policy is not something that's set in stone, and if our evaluation changes with respect to inflation, that will make a difference >> you can tell there wasn't much change because the probability of a rate hike around 42%, 43% for december that's the third rate hike this year so quite a bit of doubt and debate about whether the third rate hike happens. yellen says getting the 3% growth south out by president trump would be difficult because productivity is so hard, and she was also peppered with questions on regulatory reform, trying to defend the current system but saying the fed is open to easing in certain places, and you can

get a little pop today, bill, in the financials >> all right thank you, steve, very much. steve liesman there. back at hq let's get to our "closing bell" exchange nothing like the past two days where we had some volatility because of headline risk it's been a pretty placcid rate and the dow up 21 points cnbc's contributor art cashin is with us and joe is john manley, the chief strategist for wells fargo fund and rick santelli gheks from the cme so, arthur, we've got the health care -- the revised health care bill coming out. we've got janet yellen testifying again, but it's oil that's moving this market today. >> yeah. the market had coined of a tri-polar personality. we started out with a bounce in the morning hoping that yellen would bring in another box of candy to the game. when she failed to do that, the

market pulled back, and then from late morning until just a little while ago the fact that oil moved from threatening to break below 45 to up above 46, that gave us the midday rally, and then believe it or not getting close to -- well, i shouldn't say getting close. finding a health care bill that was not fully dead on arrival gave them the feel not so much about health care but that maybe tax reform might have some life. if these guys can get close to agreeing on health care and got us up to the rally now and now we're fading a little bit. the early look on the market closes is to the sell side and of some significance would i caution the viewers that we still have plenty of time till the close, but markets sometimes reacts to that. >> john, anything that stood out for you from hearing from janet yellen today or yesterday beyond what we've just talked about, kind of the moderation on the inflation language in. >> she gets it she's aware of what's going on she's at least as smart as i am.

one of the things that amazed me, so much strategist that think they know more than the fed chair, we don't. she's aware of the inflation risk and deflation risk and aware of the asset bubble risk and is aware of all of these things and will proceed cautiously when she sees those things, the odds of being wrong, well, they are there, but the odds of being wrong for long is really damaging, and i don't think they are there. >> rick, if you want to call it a yellen rally that we had in treasuries yesterday, that's been given back today so so much for that, right? >> yeah, you know, keep it simple as long as we're 2.0 to $260, anywhere in that, it's not that anything is really change the. the market could be in that zone it's spent a lot of of time there in the earlier part of the year i do think there's something going on though, and art and i have talked about it throughout the day and that's pay very close attention to upcoming meetings by the ecb, jackson hole, kuroda, what's going on in japan because in order to really

get a handle on our balance sheet reduction known as qt, quantitative tightening or how that will inhibit or enhance actual rate increases, all of that have is a global game, and we're just one of three players. actually you can see we're zero out of the three players because we virtually stop the qe other than replacing runoff. it's really in their court, and that's going to make a huge difference that's why two weeks ago mario draghi hints at something and all rates moved higher you know, investors are highly attuned to this, and as for janet yellen, i guess i'm still amazed there's much discussion that, you know, from 2007 to 2010 the fed did good things. stopped a lot of bad things from happening. okay even if you concede that they have had seven years to try to get growth up we were thinking 1.5% growth, 2.75, never materialized this the administration, no matter what you think about them, they had seven years, they have -- the administration had seven months

i was really amazed in two days, she doesn't give any nod to the notion that a fiscal rescue, any kind of policy is a good thing i remember not that many years gone under a different president. they were begging for some fiscal help because monetary policy couldn't do it alone. >> you know. he mentioned jackson hole, arthur you're a little more skeptical that we might hear suddenly hawkish mario draghi show up at that meeting in august to kind to explain to the world a different way forward. what do you think is the significance, if anything, of him going to that meeting next year >> you know, it's a platform and sometimes it's used for very, very dramatic monetary policy statements there's always that possibility, but i don't see him turning as hawkish as all the rumors have it we had the yield on the bound move up today on rumors he's going to turn very hawkish as rick said he and i discussed it a little bit earlier on air, and -- and i'm -- i'm hesitant to believe that he's quite all

in and moving things higher. we'll get to see, you know we've got next week a few things coming up. i would keep my high on draghi i don't think he'll be quite the hawk that we think. >> i agree with you, john. i think he'll redefine the word gradual with a european accent i'm with you. >> see how he walks that back again. bank earnings tomorrow that's the next big signpost that we're waiting for what are your thoughts >> i think they will be good again, i don't want to put too much emphasis on tomorrow because it's over the next couple of years. if we go to a more normal yield curve, that means a more normal earnings environment for financial corporations almost certainly the regulatory environment will become a little bit more benign than it has been they are still not particularly expensive so we have the anticipation we haven't had had the fulfillment yet. >> gentlemen, thank you. we'll see you later, art on

closed orders. >> back to kate for a market flash. >> steel stocks are moving higher after president trump said he is considering both quotas and tariffs on steel. he says tariffs would deal with the big problem of steel dumping from china and other countries these comments came from an off-the-record conversation on air force one that was made public by the u.s. steel shares are all higher by around 7% on the news. back over to you. >> all right, kate thank you very much. we'll see you later. 40 minutes left in the trading session and here the dow is up 13 points, and one of the big performers yesterday, the russell is down at this hour, so kind of a quiet trade as we go into the close here. president trump may be in france today, but that didn't stop russia from being a major topic. once again, the late details on that coming up. >> plus, some of the nation's biggest banks are set to report those earnings in the morning. a look at which bank bets you should focus on for the back half of the year. >> and, of course, we always want to hear from you.

reach out to us here on "closing bell" on twitter and facebook. send us an e-mail and call art cashin and do aterwhev you want. you're watching cnbc, first in business worldwide think again. this is the new new york. we are building new airports all across the state. new roads and bridges. new mass transit. new business friendly environment. new lower taxes. and new university partnerships to grow the businesses of tomorrow today. learn more at esd.ny.gov

time for a retail edition of today's market movers. target is one of the biggest winners in the s&p 500 today after the retailer reported positive same-store sales growth for the first time in a year thanks to improving store traffic. as a result, target is raising its second quarter earnings forecast, and today's stock is up 4.4%, but despite the big

gain, target shares are still down about 27% so far this year. >> tiffany hoping a new ceo can turn its sales around. the luxury jewelry retailer has named former diesel ceo alessandro bogliolo its new chief, five months after ousting its former ceo following several disappointing earnings reports coming up, we'll discuss whether the retail interesting is starting to turn a quarter and tiffany up 1.25% today. >> president trump giving a news conference with french president macron in paris today. eamon javers joins us with the latest. >> reporter: hi, kelly they wrapped up the news conference a little while ago. a joint newser with the two president and president trump was asked about his domestic political trouble in terms of the russia story and talked about the moment when his son donald trump jr. took that meeting with a russian attorney who was advertised as having some information on hillary clinton coming from the russian government the president said this is

simply politics as usual here's how he described it >> i've had many people call up, oh, gee, we have information on this factor or this person or frankly hillary. that's very standard in politics politics is not the noisest business in the world, but it's very standard where they have information and you take the information. >> reporter: kelly, i can tell you won't find too many people on the republican side or democratic side who say it's very standard in politics to take information that's advertised as coming from the russian government in the course of ordinary politics here in the united states. also the white house now releasing some excerpts of a long session that the president held with reporters who were traveling with him on air force one on the way to paris last night. i want to give you a couple of highlights this. just came out within the past couple of minutes, and he makes a couple of comments here that might be interesting to markets as you just heard. on steel the president said that china is dumping steel he said not just china but others he said they are dumping steel

and destroying our steel industry they have been doing it for decades, and i'm stopping it it will stop he says there are two ways to stop it. one with quotas and the other with tariffs he said maybe i'll do both we'll have to wait and see what policy specifics underlie that comment. also, the president saying he wasn't joking about a solar watch. he says, in fact, he,s going to seriously look at that it's a 2,000-mile border, but there's a lot to consider in doing the wall that way. he also wants the wall to be transparent, he says, because drug dealers are throwing bags of drugs over the wall, and if you don't have a transparent wall the bags of drugs could hit americans on the head on the american side of the wall, so that's another comment that the president made there, and finally on donald trump jr., don, he's a good boy, a good kid. he had a meeting nothing happened with the meeting so the president continued in that off-the-record session in the same vain we saw him talking publically about his son. he said he would invite vladimir

putin to the white house, but he said now is not the right time for that kelly, he said he's open to the idea, but not going to do it any time soon. >> i know you're not there with the president, but i'm curious your thoughts on this relationship that's developing with president macron, and when you consider, you know, angela merkel is no best friend of donald trump. >> sure. >> theresa may, we can guess, is probably the same since he's now delayed until next year some time visiting there, and he said today vladimir putin, he would invite him to the white house but now is not the time. so how do you assess somebody who teams to be emerging at maybe donald trump's best ally right now? >> it's a bit of a political surprise because you can see these people as sort of two ends of the political spectrum globally, though there's some in the white house have argue that are macron is a bit of a nationalist. his campaign had some nationalist elements to it though his politics are very

different from president trump's politics and maybe there's common ground there. you're seeing mark ron on this foreign trip roll out the red carpet for trump you can see there the military honor guard, the band, all of the pomp and circumstance elements that this president really vefls in in his foreign travel all being rolled out for him. he's being treated as a very important guest of the french government contrast that with last week i was in hamburg, jim any, along with the president and there was a meese meeting of all world leaders and this president didn't stand out so much because there was so much star power in the room, so many important heavyweights at all of the meetings that the president didn't really get that opportunity to feel singled out for attention the way he is here in france, so the french clearly making an effort to connect here with donald trump. clearly this is a president who needs donald trump and trump needs some foreign friends right now. >> i'm still thinking about the bags of drugs over the see-through wall. >> i am, too. >> thanks, eamon. >> our eamon javers in

washington. it's a clever idea, the solar piece of it. shares of gentex are lower today. coming up, why one thinks gentex could plunge as much as 80%. united airlines coming up with a solution, maybe, to overbooked flights they buy your seat back from you before you get to the airport and then resell it for a higher price and it could be a win-win for both passenger and carrier and we'll talk about it when kelly and i come back.

>> texas is still adding jobs at among the fastest rates in the nation minnesota's best category education. georgia finishes near the top

for workforce and infrastructure. >> and the winner is washington state. >> thanks for this honor it really is an honor. >> washington, america's top state for business 2017. >> welcome back. shares of delta airlines are lower by nearly 2% today after the company reported an adjusted quarterly profits 3% below estimates. revenues were in line with estimates. as mentioned, the stock is trading lower, all on heels of some of the better numbers from american that boosted the whole sector yesterday and spurred our lively debate about this industry yesterday. >> yes, indeed, and there's more in other airline news, united airlines is working, introducing a new flex schedule program to combat the problem of overbooked flights that has been a nightmare for them, this year

especially they would do the buyback up to five days before your departure so they can tweak their flight plans. the benefit to united is that they could then resell that ticket at a higher price as they get closer to the thing. i mean, this is it i think this is one of the solutions that can work. >> i love this. >> i do, too. >> now, they said it was up to $250. >> so if they sensed demand is picking up for this particular flight, they will send you an e-mail if you're booked on this flight asking you how flexible you are with your flight schedule, and if you're willing to give up your seat they give you a $250 voucher and rebook your on another flight. >> you can be flexible if you're notified once you're at the airport, you've given up your evan tire travel day just to get back home if you live in new york city. >> we'll see. >> i think they need to -- you can see a whole future here, where you buy your ticket, almost like an option, right

you have the option value. maybe it's a little bit lower and they are able to come back at you and say we'll give you 250, even more if people sense there could be an opportunity there they will definitely take you. >> it sure beats dragging people off the flight to make room for somebody else. this is an improvement, that's for sure. >> that, too. >> all right there's united still down half a percent today. it's time for our cnbc news update with sue herera sue? >> here's what's happening at this hour, everyone. president trump is very likely to recertify iranian compliance with the iran nuclear agreement, although he continues to have reservations about it according to a senior u.s. official under u.s. law the state department must notify congress every 90 days on iran's compliance. at his daily briefing house speaker paul ryan said donald trump jr. should testify before congress about the russia investigation if asked to do so. >> i think any witness who has been asked to testify before congress should testify. i'll leave that up to the

witness and the senate to decide that, the committees anybody who is asked to testify to it the senate should do that. >> and talk about good fortune new kids on the block star donny wahlberg left a whopping $2,000 tip on an $82 bill for his waitress at the waffle house in charlotte, north carolina. he cited his family's involvement in the hoppity industry his mom waited tables and his dad was a bartender. he also provided some fellow waffle diners with tickets and backstage passes to his show which is playing in town that's the news update this hour bill, back downtown to you. >> well, there was that report out the other day that men are better tippers than women. >> i don't know about that. >> i guess that proves that. >> just telling you. >> that is a god example. >> don't hit the messenger there. thank you, sue. >> you're welcome, bill. >> see you later. >> you got it. 25 minutes left in the trading session with the dow up 24 points. matt cheslock refers to himself

as a very big tipper what are you watching here headline risk has been a big factor here. the don junior e-mails, yesterday janet yellen's testimony and today we're back in waiting mode. >> and that's with all that's gone in d.c., too, and that hasn't really moved the market at all i know they are not anywhere further on it and it is a headline and head line risk factor is now out of it. what's interesting to know, right before i got out, i noticed the vix at 10, that's a credible number and it has a spike higher. >> and just did go below 10. >> 9.96 right now. >> so many people say they will buy vix below 10 that's my insurance and now we get a chance again never thought we'd get that chance. >> and it comes before the first of the big financial earnings tomorrow morning. >> yeah. i think that you'll really look to see what they are going to say for the second half of the year the second quarter is not going to matter so much. there's too much out there there's too much that this market is trading on as far as hope and optimism. you'll see what the financial

institutions say they have the most skin in the game and they will tell you what happens in the second half. >> thanks, matt. appreciate it. >> thank you, guys 25 minutes to go here. dow hanging on to a gain of 25 points it had a record close yesterday, remember the s&p 500 up five points, 2448 and the russell trying to fight into positive territory, down about a point. up next, cbs president les moonves on how they are fighting cord cutting and we'll talk the nfl's falling rangs tiand we're joined by hall of famer and denver broncos general manager john elway stay with us

and i'm an arborist with i'pg&e in the sierras. the drought in california has killed trees on a massive scale. any of those trees that fail into power lines could cause a wildfire or a power outage.

public safety is the main goal of our program. that's why we're out removing these hundreds of thousands of hazard trees. having tools and technology gives us a huge edge to identify hazard trees. my hope is that the work we're performing allows that these forests can be sustained and enjoyed by the community in the future. together, we're building a better california. the annual allen and company conference is under way in gorgeous sun valley idaho gathering media moguls and tech titans and julia boorstin. she sat down with cbs ceo les moonves to talk about the biggest issues facing his industry right now. >> hey, bill the convergeance of media and entertainment giants comes at a time when the television business faces growing pressure from steaming digital video, whether on netflix, amazon, hulu

or even youtube and facebook with cord-cutters on the rise but cbs president les moonves says content will remain king. >> as long as we keep doing the content there will be things to replace it a few years ago as the indication market got worse as cable a.long comes netflix and amazon paying amazing prices for our syndicated programming so we've been fine and actually that area has grown for us. >> reporter: cnbc continues to negotiate with directv to be included in its skinny bundle. they do eventually expect a deal to happen but moonves says he's bullish on the rise of the skinny bundles such as those from youtube and houleu. if somebody cuts the cord and decides to go on the new deals, what we have with youtube or

hulu are better to us financially. >> reporter: cbs is facing new competition from amazon for nfl viewers this fall. we veal more from moonves on his future of the nfl and we talked to new england patriots owner robert kraft about how he thinks the nfl and the football season needs to change. kelly, back over to you. >> yeah, we look forward to that and stay there for a minute. cbs will also televise the 2017 emmys we released its nominations early today and topping the list with most nominations was hbo with 110 netflix hot on its heels with 91 hulu scored its first ever emmy nod for outstanding drama sires for the popular "the hand maid's tale" and a big day for the broadcaster. nbc had "this is us" breaking a six-year dry spell for broadcast emmy nominations and also brought 11 total nominations so,

jewel you issia, the point here is this tally, it seems, that these emmy nominations also tells you about where the zeitgeist is for tv viewing, and nbc is luck to made the list. >> reporter: yeah. nbc made the list really because of the power of "saturday night live," among other things, but a lot of attention on "snl" this year as well as the show "this is us. so it's really interesting to see the emmy nominations reflect the way that people are watching television and the streamers really are part of the zeitgeist now and i think handmaid owes tale" generated the buzz and bad to see it get the attention. >> i was stunned that "this is us" is the first broadcast drama to get a nomination in six years. >> reporter: wow. >> that's unbelievable, and you can in part thank "game of thrones" for that because they weren't up for a nod this year because of the way that their schedule was playing out this year

we'll see them next year i'm sure next year is the year of "game of thrones," right, you' julia is >> reporter: "game of thrones" draws a ton of nominations and it's remarkable that hbo brought in more nominations than anyone else, even without "game of thrones," the power of "west world" but the fact that we're seeing "this is us" draw so much attention" and even "snl" and that everyone in television takes more risk and we've seen the rise of the cable tv university verse and the power of netflix as the digital streamers create high quality content and we've seen the quality of traditional broadcast content step up as well because everyone is competing with everyone now and nbc with "this is us" really thinks of itself competing not just with cable tv but also with all the streaming options now. >> that always looks like a fake backdrop when she's in sun valley julia, thank you julia boorstin there in sun

valley. >> and we'll see her later 15 minutes to go until the bell. dow up 22 and s&p up 5 and nasdaq 13 and russell slightly lower. big bank earnings roll out bright and early tomorrow morning. two stock pickers tell us which banks to deposit in your portfolio. >> and live to virginia to a new grocery and we'll see if the expansion of a german chain will spark a price war with an american rival we'll be right back. to someone more handsome. and talented. really. and british. switch from cable to directv. get 4 rooms with hd, dvr, and every box included for $25 a month. i enjoy the fresher things in life.

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(baby crying) ♪ fly ♪ me to the moon (elegant music) ♪ and let me play (bell rings)

welcome back earnings season kicks off tomorrow with citigroup, jpmorgan and wells fargo reporting before the bell. all the shares had a little bit higher today, this coming as a recent report from the "wall street journal" shows banks are keeping deposit rates low despite the fed starting to raise the short-term interest rates. >> as customers look for better returns, or any returns, could we see more banks start to hike deposit rates? joining us kenneth leon, analyst at cifra and jim senegal with morningstar. i mean, kenneth, do you see any banks raising -- and goldman did that recently, but anybody else?

what is it going to take to get somebody to raise their deposit rates for the first time in eons what do you think? >> it's going to happen, but it tends to come with competition, so i would say not only from deposit rates but also what they charge for credit cards as the spreads stay attractive and we could see them raise deposit rates and part of that has to do with funding from the federal reserve as well. >> and you have a buy recommendation on bank of america, citi, goldman, jpmorgan, stanley, and a hold on wells fargo, ken, is that right? is there anybody -- you focus on the big bank so wells is the only name have you as a current hold >> yeah, we do, and really the ones we have bice we break out into those that are related to it the capital markets like goldman, morgan stanley, and then jpmorgan, citibank and america as well, but they have much larger deposit base to your story here

>> jim, before we let you go, we're tight on time here you like wells fargo and citi, both are reporting tomorrow morning. what are your expectations there? >> we have a little bit of an opposite take. we have the names that have been left behind in the interest rate real wells fargo has a lot of problems to fix. they have the sales scandal earlier in the year. we think they are well on track, and they have a very high dividend yield at this point, among the heist of the big banks. if you're looking for yield you have to go with wells. citi is a similar store. they doubled their dividend this year and tripled it last year and they are paying out four or five times in repurchases what they are paying in dividends over the next few years we think that mix will shift and we think the payout will actually go up so we think shareholders of the two banks will see a lot of cash back in their pockets over the next few years. >> all right kenneth leon and jim senegal let me point out very quickly that art cashin signalled across the floor, age balance to the sell side of $300 million of the

dow is up 32 points right now. >> and our dominic chu is out in lake tahoe for the american annual century championship golf tournament and has had great guests all day and joins us with, holy moly, sir barkley, sir charles. dom? >> reporter: thanks very much, kell deand bill. so charles barkley is with us here from the american century championship in lake tahoe charles, you're rushing in here and about ready to tee off, but you just flew in this afternoon half an hour ago because where were you >> i was in sun vale, idaho, at the allen conference, one of the coolest things i've ever done in my life, you know, just sitting out there looking at mr. warren buffett there, mark zuckerberg you got ivanka trump and her husband jared kushner and i was on a panel trying to discuss the economic divide in this country between the rich and the poor. racism does exist, always has existed and always will exist, unfortunately, but the biggest gap in this country is the

divide between the rich and the poor. >> so you've gone from one mountain retreat to another. why are you so important and so high on this championship, this charity golf event that american century puts on? >> well, american century and nbc just does a fantastic job. the city of lake tahoe, man, the people are amazing first of all, it's hot as hell everywhere else in the country it's beautiful here. this lake it amazing, but the fans make it worthwhile. the celebrities are amazing but this is the first thing i put on my schedule every single year. >> now the nba is going through a transition phase right now, a lot of stuff happening including e-sports for one tell us what you think about the e-sports craze is it for real and something you would be high on >> i don't do e-sports i don't do any type of gaming whatsoever i don't know all the intricacies of it, to be honest with you what is happening is everybody is making so much money that they are looking for different avenues to -- you know, there's a breaking point at some point,

and now you're trying to venture out and make more money on the side my number one priority is to the nba. basketball has given me every single thing in my life. i just want us to make a great product. i work for a great company in turner sports. like i said, i'm not against video games or e-sports, but, you know, a lot of leagues are going in that direction. >> how do you like your odds this week at this championship >> you know, i'm 6,000-1 i don't feel b good about that i've just got to beat one person my goal every year is to beat one person >> who is that >> i don't care who is i want to beat one person. i have very low expectations. >> well, we wish you all the best of luck this week, charles. thanks so much for joining us here hon "closing bell." guys, back to you. i asked -- one more thing to do here, guys i do want to say when you play in these events, who is the person that you've had the most fun with >> larry the cable guy. >> why >> because he is a funny guy

he's a real nice man i've only seen him from a distance, but not only is he a great terrific comedian, but him and kevin neiland, i play with those every year, my two favorite people. >> we're talking about the way that this is setting up for you overall as a tournament. what are you working on specifically in your professional game and golf game? what's got you occupied the most in your life >> trying to figure out if the dealers got 12 and i've got 12 if i should take the hit or not. that's my only big concern i think about going. do you hit the 12 against a dealer's 12? that's the only thing i by it while i'm out on the golf course all day. >> guys, this is sir charles for you from lake tahoe at the american golf championship thanks so much for you. >> thanks for having me. >> he's got to get to a tee time, guys, so he's got to rush out of here. we're having fun. >> he's got to warm up to get that classic golf swing going

there. >> put me in the tournament and then he can definitely beat somebody. >> i don't know about that >> have you seen him swing a golf club? >> have you seen me swing a golf club >> point well taken. dow up 34 points. >> that was hilarious. the countdown to the closing bell ines xt. >> take a hit on 12, take it

(upbeat dance music) (bell ringing)

[car tires screech] [bell rings] we are just inside the two-minute mark with the dow up 22 points. could i show you today's dow chart that would tell you nothing about the mindset of this market. i want to go back the beginning of the week and watch the gyrations of this market and what causes it tuesday was the don junior e-mail selloff yesterday was the rally from janet yellen's testimony without any of that going on today we've gone sideways going into the friday. and look at oil. this is very interesting if you look at oil over the same period of time, a very similar

price chart. isn't that interesting as they go through all of the inventory data and try and figure out whether opec is going to cut production enough to bring prices even higher than this but we're at $45, $46 a bear the ten-year yield yesterday rallying so that brought the yield down with janet yellen's testimony. today no surprises in her testimony to the senate banking committee, and we're back where we started again, context is everything, and bob pisani, tomorrow morning we get earnings, the beginning of the earnings parade from are the bank we get city and wells fargo and jorg anne and pen pnc financial. >> the story is trading should be a little bit better for the big banks and also ipos and m & a activity will be a little bit better we'll hear from the big banks on that the most important thing is interest rates, long-term rates not up much but the long-term rates are up in the second quarter. that's a little bit of a help and we hope to see a little bit of loan growth going on so overall we'll got a modestly

positive commentary and, of course, jamie dimon always has the most color that's what we're looking to quote early in the morning. >> out first thing tomorrow morning and that's coming up on the second hour of "closing bell" with the dow up 24 points on the close see you tomorrow, kell >> thank you, bill welcome to "closing bell," everybody. i'm kelly evans, and for the second consecutive day the dow is closing at a record high ear on wall street it's a 25 point game to 21,556 enough to hit the mark on top of yesterday's gain a much larger increase yesterday, largely attributed to fed chair janet yellen's testimony on capitol hill. today was day two and the rally appears to have held in place enough to deliver the dow to the record levels. meantime, the s&p 500 with a gain of about 4.5 points to

2447 let's call it, that's about six points shy of its closing record the nasdaq today adding let's call it a fifth of 1%. 5 it 74, about 50 points below its record loesing clefl and the russell 2,000 is one point below it with a small gain that turned positive more on this in just a moment. also coming cup is nfl hall of fame quarterback and gm of the denver broncos john elway. he's going to joining us from the american century golf championship tournament with the future of football and sports broadcasting fun having dom out there interviewing these guys all day. michael stoly is on set with us and breaking news contributing a -- that is rob cox, global editor of reuters news, welcome to you, sir and steve any link is here from tiaa investments. well, everybody. mike, we mentioned earlier as well how much of this was yellen versus oil versus a lot of --

look, the senate released its health care proposal today what do you make of it all >> it's a lot of things to go into, a .02a .2 of 1% move. the market continues to grind in low gear and what's that good, not spore feed by climbing and steady moving ahead and that's what we've had the last month, had about a percent and a half gain i think in the s&p, 5% over the last three months, so it's been that kind of market where it doesn't seem like it's going to run away from you, but it stays supported, and, you know, it's sort of like grabs at what it can. retail stocks bouncing hard because you've got good news that was unexpected. >> let's talk about the xrt, retail sector having its best day of 2.5%, been a tough year, but look at some of the individual movers that we have today. not only has target moved up but gap up 6% and maybe even more on

the bell o'reilly autoparts which to me indicates perhaps, and tell me what you think, bill, that a lot of this is the amazon relief trade. a binary thing amazon is destroying all the retailers and driving them to zero or today it's not. >> we sing from one side of the pendulum to other. all other stocks are down 10% to 30% if not more from its high. it's a bit of relief covering and a short covering and what's interesting to me is to see if we get follow through because we talked about costco last week at 6% same-store sales numbers. >> people weren't impressed. >> up 4% and gave it all back and fell the last couple of days so it's interesting to see if the there's real buying. i'm not so sure. have you to pick some of the jewels that get thrown away with the rest of the group, like a costco, like a tiffany's, like a tj i think those are names that you can pick, but the jury still out. >> why do you think target today managed to improve and lift the

entire segment and costco couldn't do it with that number? >> costco has been one of the stocks that held up, a safety trade, if tull people were hiding in costco because they have that recurring ref new model and 35% are membership fees andy that very important and kind of insulates them from the amazon fear, full. >> yeah. >> but target is down 30%, so expectations are so low that this is a nice little pop, but that's why -- that's why i have to see if it's going to last. >> nobody really agrees that target is doing anything great or revolutionary or executing perfectly and that's why they have better environments you had macy's and kohl's today ripping through the upside and similar type stocks beaten down and no expectations. costco's raw stores. everyone was in there with premium valuations because they are doing better. >> i mean, people were expecting targeting to have earnings down 16% year over year in the second quarter this year, so now they announce that they are going to be down 6% oh, okay that is bert, and i get that

incremental change, that rate of change, but it's just still really tough for them. >> fair enough, and there's nearly 5% gain and more on that coming up shortly. rob, let me ask you, if we can talk about the senate's health care bill for a movement now a lot of this seems to come down to do they have the votes to get this thing pass and what does that mean for tax reform how would you kind of look at today's release of the bill and maybe some of the prospects there now? >> yeah, well, we're going to get the scoring i think sometime next week from the congressional budget office, so -- and i think we're going to get two scores, right? we're going to get one that includes the cruz amendment, and we'll get the one without. look, i mean, it's -- it's kind of amazing this market is holding up the way it has been i mean, it's sort of like imagine if we had real good management coming out of washington you know, we've got -- we've got people really believing that corporate profitability is sustainable. it's -- it's staying up there. we've got -- we're near or

bouncing around on highs despite all of this crazy dysfunction going on forget in the white house but we've got a republican party that's kind of at war itself and it's the majority party controlling both houses of legislature. the biggest surprise to me is just the resiliency of the stock market in the face of what looks like, you know, pretty disastrous management out of washington, and i think things like target is exactly right. >> rob, we know gridlock is good you know, you can read this both ways, either read it -- you can either read it as the market is cheering on the president's agenda, and, you know, wants it to move forward at any cost, and then the other way to read it is,na, back to the old gridlock, it's good. >> and it's also about the world because the emerging markets index was up half a percent today, twice what the s&p was. nobody is saying, gee, why are the emerging market stocks up when nobody can get their act together in d.c. >> by the way, to your point, all-time intraday high

the kospi stock market, speak of well functioning anyway, kayla tausche joins us. >> reporter: the draft bill preserves two obamacare taxes to pay for increased funding to stabilize state insurance markets as well as more funding for substance abuse treatments interestingly though it also provides higher funding for states whose costs are higher than the nation's average. specifically alaska whose senator lisa murkowski has been critical of the bill and today says she's undecided half a dozen senators after the bill is released today have said they are undecided there are two firm nos so no margin for error for this bill going forward and senator lindsey graham said look beyond the senators and go to the states that might be key to get some of these votes. >> i think if it brings governors home we're good to go. if you get governors liking this, then that will free up several senators who are in a

bad spot having to defy their governor >> reporter: most stark example of that, of course, is nevada whose governor is staunchly opposed to about the and whose senator dean heller has been undecided as well. republican governor asa hutchinson of arkansas also today criticized the way the bills treat medicaid and shift the cost to the states he says that's unsustainable >> i remain concerned about the traditional and expanded medicaid program that the current draft still results in a cost shift to the states which would be very difficult to absorb, if not impossible. we could not absorb that kind of cost shift and maintain the level of coverage that we have now. >> that's the leverage of coverage the estates have now. that's not even including the growth that will come over in the next few years, kelly. there are said to be more meetings going on. er mitch mcconnell is leading with moderates this afternoon. more meetings on medicare that's

happening but leader mcconnell said when he came out of one of the those meetings said we'll voting on this next week and we'll see if he can get the support cobbled together for it. >> and when might we get the cbo score, do we know yet, for this bill or the two versions of it >> leader mcconnell said that would come early next week that's as much detail as we have at this point, and that's probably as much detail as senators have from the cbo as they are still trying to work through this of course, they need that score before they can even vote on a motion to proceed which is process-wise what you need to do to even put amendments in this draft. so we'll see exactly how this comes together and whether that cbo score makes it harder or perhaps easier for them to support it. >> absolutely. kayla, thank you for now our kayla tausche reporting for us in washington so we have this obviously to kind of hang over the markets for the next couple of days as we continue to hear from senators who are supportive of it it. i want to pivot back and mention

before we move on kwlelen owes appearance day two i mean, there was a lot more to be said about it yesterday when it seemed to move the markets in a bigger way, stephanie. anything significant to you about what happened and what was said >> i don't think so. i think the message yesterday got exaggerated to the downside for rates. the message is very clear that they are data dependant, and they will act accordingly. that makes me happy, actually, because can i follow the data and figure it out. i think what's really important for the next several weeks is going to be earnings we start tomorrow with jpmorgan and wells fargo, bank of america. i mean, these are companies that we've got to hear about how bad was tradeing how bad was -- what's going on with equity business and deregulation how much is that going to impact earnings in the bottom line. that's what i think the next couple of weeks takes center stage. >> we did get the ppi number, the datadependant point and th kruks of the whole thing the core producer price index a little soft and tomorrow

consumer price index. >> if it's a soft number you can see rates then kind of back down, and then vyou will have that growth trade back on. >> no matter what the financials report. >> that's the one possibility. the market is very quick to move in that direction. you had tech leading again today. >> yeah. >> the same familiar growth names that people hide in. i do think yellen today, yesterday, all she really did was kind of walk back a little bit of perceived hawk ibanez from june. today she didn't do anything to disturb yesterday's impression, though in answer to questions she said, look, if you have a 2% inflation target which the fed does you have to work to achieve it, and a lot of the ancillary commentary was about how hard it is going to be to get growth to 3%. >> right. >> so it's kind of net-net, a little bit bearish on growth and inflation. therefore, leaving the fed perhaps in a position of not being able to go too far. >> right, and by the way, you mentioned the big-cap tech names and we had names like facebook and paypal, vice-and-and mastercard we did have a little bit of mix for once

some of the defense names, some of the industrial names, you know it was a little -- usually we've been looking at this and seeing kind of the usual same names, and that's the whole market, but there has been a slightly didn't sheen to it here. >> industrials in particular have been moving, and i would point out within financials it's not the pure banks that have been leading, but the investment banks and asset managers, a net bullish sign, but it's not just about the familiar yield curve trade. >> rob, is there anything you would add there? there is this -- we have the financials reporting tomorrow obviously. we've been talking at great length about how much tech has been leading this real, but the dow transports were also at all-time intraday highs today. >> yeah. everybody is looking at tomorrow you've got jpmorgan, citi and is it wells, somebody else? and everybody will look there to see any glimmer of regulatory relief and how that filters through to the bottom line as well as you get to see capital markets, activities and things like that. it's a good window obviously i mean, just going back a little bit to what janet yellen was

saying it was kind of interesting when she was talking about gdp growth, she obviously said it would be fantastic if we can get 3% gdp growth and she kept saying it's quite challenging, and as i was saying before there's a pent-up hope and demand out there to see growth above the sort of bumping around 2%, and that's why i think i agree like, you know, gridlock is good because they can't screw things up but there is an idea if you can somehow unleash the economy through policy reform and pro-growth initiatives, that would be great and i think that's the thing that surprises me still that we're not getting any of that and we're still bumping along here and sometimes reaching new highs. >> rob, in fairness, maybe it's not the huge headline stuff, the health care and the tax bill. >> yeah. >> but there's been a lot happening. look what the s.e.c. is doing regulatory-wise and a lot of other agencies and ways that the administration can be deregulatory without the two major pieces of overhaul.

>> which is why it's interesting to watch the banks because you start to see some of that filter through. at least the philosophical level even if the banking amateurs are crawling around in their undergarments. >> we'll leave it there. rob, thank you and stephanie link joining us as well. thank you. >> a pleasure. retailers on the rise. jc penney up 8% and target one of the best performers after the chain raised its profit guidance up next we'll see if this is the start of a broader retail rebound. shares of auto supplier gentex falling hard today after a short seller issued a strong sell on the automative company the man behind that call exclusively. you can reach out to the show via facebook, twitter or send us an e-mail to closingbell@cnbc unii.com can you're watching cnbc, first in business worldwide the power of an etf. the power of qqq. the thinking we put in,

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new, more reliable equipment for your home. and a new culture built around customer service. it all adds up to our most reliable network ever. one that keeps you connected to what matters most. welcome back let's send it over to kate rodgers for had a market flash. >> we're watching shares of cyberark down 15% in the after-hours market they issued a warning on the second-quarter results the company pointing to results in europe, middle east and africa for the shortfall the stock is down 5% year to date and now down around 16% kelly, back over to you. >> thank you, kate

one of the cyber security -- >> can't speak too much for what's going on in particular, but i will say the space is incredibly choppy for an-year that you would think they are just kind of feasting on all the turnarounds. >> this has been going on for year seems like each individual provider, almost jokingly think of it as biotech may have they have an antidote for the one thing that's bothering this company at this time. >> right. >> but maybe companies are just slow to raise budgets across the board. >> you have the best analogies if one can can be envious of that. >> the spdr zap retail is down today but among the leaders target, up 5% after the company boosted its second-quarter sales forecast and expects a modest increase in same-store sales is this a sign that retail could be turning a corner? let's ask liz dunn here from

proforma wurm, guys, i feel like you should be smiling today because for once we're not talking about who is down 20% and going out of business anyway, liz, did it become overdone, and why did target spur such a dramatic move in the department stores today? >> i think that's a mistake of the target's news was great for target, down 30% heading into today and this is the first positive we've seen from them. last quarter wag a little bit of upside but they have had four quarters of negative comps so this was very good news for them, but i don't think it means anything positive for the department stores. >> simeon? >> if you think about it, we talk about death of retail and death of commerce, the difference between whether people are shopping or where they are shopping, they are shopping just had prime day there couldn't be enough positive news coming out of how many people shopped yesterday so at end of the day you by it who can benefit, the department stores are the clear donors so whether it's the brands or other -- whether it's alta or off price, prices that can

benefit from share leaving, there's a large chunk of sales the multiples are down, valuations are down. >> hang on, i'm not following. >> so you're saying, we had a strong prime day. >> yes. >> therefore, the department stores -- >> so you're seeing sales shift elsewhere. people talk about the death of retail. >> leading the department stores. >> and they will continue to leave them. >> so you're skeptical of the move in the department stores today as well. >> yes. >> so the way we view this, think about target and different calendar shifts and timing and taxes and there's a lot of benefits y2q and why we can see strength and where we are as a whole, as an ecosystem, sales are leaving the mall and the department stores and they are going to places other than just amazon. >> i see. >> michael >> i guess my question is obviously a lot of today's move is about positioning, was about investors that have been leaning against this group, whether your shortage was uninvested and getting the whole spark and the whole group says okay, maybe it's overdone in the short term. okay is macy's fundamentally in two

years down from 70 to 22 >> wow >> does that correctly reflect how much share they are donateing? >> listen, there's -- the move rights now, look at the volume attached to this there's a lot of short covering. >> yes. >> so here's a thought here's the sector where everyone will continue to make those types of moves and they won't stop, but at the end of the day you can short then get news like this it gets scary to be short those stocks. >> totally fair point. we know trading is all over the map on this. so is there -- so simeon is drawing a line saying they are not going to a department store. my mom loves going there for groceries because they have produce and have milk and she can walk -- so there might be something to be said for their efforts. does mean that, you know, not all store-based retail is a problem, that it's more the mall, or is that still too - >> i'm pretty negative on the mall i've been negative on mall for some time, but i have not been negative on all of physical

retail and what target has done well over the last year, despite abysmal stock performance and continuing negative comps until this report is that they have invested in new store formats. they are testing things. they are investing in new products, new brands, and customer experience, and what customer experience means for them in a lot of cases is a seamless experience across channels, and so -- and then they have pulled back on some investments that haven't, you know, haven't panned out, borne fruit. >> yeah. >> so i think that they are, you know, i think that they are certainly viable long term i think that you've seen it from walmart and costco where those -- those companies are performing, and so it's not a one-size-fits-all. there will be winners and losers i think target, at least this is a very positive sign that things that they have been investing in is starting to work. >> you mentioned alta a minute ago, and we were talking yesterday about how much it's down from its recent brake what do you think is happening there? are they somebody who still stands to benefit? >> there was an article out

there talking about discounting the department stores, the piece i believe we're referring to that news isn't that new it's publicized but it's been happening and alta has been growing same sore sales double digits at the end alta is off mall and if you're grabbing more shares in the department stores it doesn't mean they were not getting the share that they were getting and it seems like the vendors, the brands they sell could want alta to succeed so we're giving them this product so we think it will continue to be a beneficiary. >> thanks, guys. here to explain some of the nuances of retail, throwing the baby out with the bath water. a food fight is emerge pentagon on the east coast as german chink lido opens its first chain. will walmart and kroger's be able to compete on this front? you're seeing it's lidl? this lidl location is the first day, opening day, and it's

actually been packed since the doors opened there was a line out the footprint door hundreds of folks, thousands now have come through here this is lidl store number 14 of 100 planned that that will be coming through the east coast by the end of next year so far shoppers we've talked to are real impressed. >> the price and the ordinary prices here are really compatible or even better than things that i see on sale a lot times, so i will come here first before i'll go to some of the other stores. >> reporter: we can a quick compareson of eggs, bread and milk here and at a nearby walmart and it turns out lidl wins on praise for eggs and bread and tying on the milk. deutsche bank analysis of 30-plus items that other lidl locations does find lidl's pricing 15% below kroger and 10% below walmart and neighborhood markets and 6% below walmart supercenters and on par with

aldi lidl is here with competitive guns blazing at this location there is an aldi one parking lot away and a walmart within a mile. walmart says it's very mindful of lidl. remember, it does compete with them overseas already. kroger is also fighting back, already filing a lawsuit against lidl alleging that lidl's private label preferred selection is too close to kroger's 20-year-old private selection label. they say that the confusion is being done on purpose. lidl says it's very proud of its private label brand. kelly this, store is only sikhs aisles, 1-10 the size of a regular u.s. grocery store, but there's a lot of focus on fresh produce, meat and seafood, both sustainable. there's also this aisle with surprises so everything from bedding to electronics and black friday-like price and the wine they have a master of wine, so this is higher i understand than

the smallier and 120-plus wines. one of them awarding $2.29 so just to hammer home the prices let's play a little supermarket sweep. i have some items that are among your favorites, so kelly and my, let's maybe start with the coffee, okay so first let's do lidl -- this is their private brand this is 12 ounces, medium roast, ground could have de kelly and mike, what do you think the price is for this? >> this is real tough. okay i'm going to say $3.89. >> given how cheap the dozen eggs were, would i have to say -- >> did you see this earlier today? >> no, i didn't. >> the i'm going to go $1 and do the "price is right" rules. >> reporter: if it's "price is right" rules mike wins but kelly you're really close, 3.69. they do have a dunkin' donuts, a national brand so this might be a little harder so what's the price on this one?

4.59. >> 5.99. >> reporter: you both are under. this one is actually-6.87. >> wow. >> reporter: okay. now i've got some chocolate, okay this -- this is a preferred selection, so this is lidl's private label again belgian sea shells, chocolate with a creamy hazelnut nugget center eight pieces >> how many pieces is that >> reporter: let's say at least eight, more than that, i can't see them all wait -- there's 24 pieces, sorry, servings, doing the math. 24 pieces. >> okay. i know i have to make this quick. 2.99. >> higher, 4.99, at least. >> reporter: mike? 3.49 i hear this compares to $15, so the last one i want to tell you,

these chips, 1 buck. $1 for these chips back to you guys. >> wow i can't to check one out for myself courtney, thank you so much. our courtney reagan. i got to the play like -- >> i was going to surrender on the chocolates no idea. >> we have a news alert on vanguard lesley picker, what's happening there? >> reporter: hey, kelly, a change in leadership in one of the biggest passive investment firms out there. bill mcnabb plans to step down as the ceo of vanguard group and will be replaced by mortimer buckley who goes by tim. currently the firm's chief executive officer. buckley will take the helm in january, and he started as an assistant actually to jack bogel two and a half years ago mcnabb will remain chairman and ultimately pass that torch on to buckley as well. under mcnabb, however, vanguard quadrupled its as frets 1.it a trillion to 4.4 trillion kell >> yeah.

passive one. he's got that crown. >> absolutely. >> leslie, thank you very much our leslie picker. anything you want to add there >> nothing but orderly tim buckley has been there forever and been increasingly i think a little bit of the face of vanguard and he'll also remind you that they are low cost, not just passive >> you know, i'm glad you said that. >> more actively managed funds that t. rowe price has in general. >> if you get an actively managed fund that's diversified enough and the fees are lower, you can actually do very well with that versus a passive instrument. >> their core insight was all about taxes and fees >> a great point. >> i'm very glad you said that. >> goldman sachs shaking up a key part of its corporate culture to attract more talent angeexd nt falls as the sector takes a beating. why the stock has even more room to drop coming up. i'm crazy stressed trying to figure out this complex trade

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welcome back it's time now for a cbs news up date with sue herera. >> hi, sue. >> hi, kelly here's what's happening at this hour more than a dozen hearses killing the remains of military members who died in a plane crash on monday. it was the deadliest marine corps accident since 2005. it killed 15 marines and a navy corpsman when it crashed into a field in the mississippi delta. jimmy carter is being treated for dehydration in canada where he is helping to build houses for habitat for

humanity the 92-year-old former president was transported to a local hospital for rehydration he is doing okay and his wife is with him richard rojas pleading not guilty to murder and attempted murder after he was accused of intentionally mowing down pedestrians on a times square sidewalk back in may richard rojas appeared in court mostly looking down during that arraignment. >> on a light note the radio flyer, the iconic red wagon is celebrating its 100th birthday today, and to mark that occasion a larger than life, as you can see radio flyer wagon, was rolled into downtown chicago where it was created children and adults alike posed for photos in front of the world's largest wagon. i have a few of those at my house. they hold up really well >> they do. >> we have one, too. >> thank you so much sue herera >> you got it. time now for fast take today. my favorite time of the hour,

and the first up is this gardner report pc shipments showing a 2% drop for apple's mac about a year ago. >> very long-term declirngs speeded up interestingly we've got a decent amount of news in a gain from pc in a different tracker the max side of it, maybe people chock it up to the fact that they need a refresh and it was late, but obviously people are just subbing and using tablets and phones. >> at least for apple, they are apple products another hit for apple. amon is working on a sleeker better sounding echo computer. can amazon keep its lead here, michael? this is the question >> i wonder if it's about the zero sum effect, you know, are they going to steal market share in it seems this is a nascent category, and ale is counting on the apple fans going for premium and sound quality and things like that. it seems to me that everybody

will get their piece. >> haven't talked a lot about google home but sounds like they have done a good job making inroads. >> from a different direction. leading with your thermostat as opposed to your music. >> see what the sleeker echo one looks like. >> next, goldman is relaxing its dress code for its engineers, under new ceo lesley wiesel and google saying they would allow more casual businesswear. >> giving in to the trend in general here those of us around in the last tech bubble sounds very familiar mba grads being recruited by dotcom firms as well as by wall street were saying, we're only going to go work for the banks if you let us dress casual. >> look at the date on this. 2000. >> march 2000. >> march of 2000 sglutio. >> but back then it was going, from you know, jacket and tie for men to khakis and oxfords. >> and now we're starting with khakis and oxford. >> might be going to jeans and

ripped shirts. >> not in the new york stock exchange. >> right. >> did you hear what happened to the m.i.t. guy arrested for insider tradeing he apparently got tipped off to a deal by his wife, a corporate lawyer and probably won't help his case he goggled how s.e.c. detects unusual trades. >> this is one area where the s.e.c. really does tend to catch people when you're a small trader and you trade options and they routinely -- if you goggled that, it should have told you don't do it. >> i don't know if the google search is part of the case, but it does send a little shiver up my sign. >> he tried to disguise his mother as doing the google very much >> there was a lot going on here up >> next. cbs news les moonves is expecting nfl viewership to rebound from its off season 2016 will fewer commercials plan for next season and help to boost 'lask gs wel the general manager of the denver broncos and former star quarterback john elway.

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welcome back another record-setting day here on wall street, the second consecutive one for the dow which was up about 2 is points to close at 21,553 everyone else below their high water marks and thes that damage managed a 13-point gain and s&p up 5 and the russell turned green on the bell there. the annual allen and company conference in sun valley gathers not only media and tech executives, sports commissioners and team owners also make appearances. we heard from charles barkley. he had just been there earlier all of this is the future of sports and advertising in sharp focus. julia boorstin joins us with the latest from out there. julia? >> hey, kelly, that's right. the nfl commissioner as well as the owners of many nfl teams are here on the list in sun valley

now, i spoke to new england patriots owner robert kraft, and i asked him if he was concerned about the double-digit percentage ratings decline in the regular season nfl games last fall. he said the nfl has changes in the works to make fans more engaged than ever. >> we're actually going to have fewer ads and our television department has worked with that. when you have something great, you have to constantly adapt and change, and -- and i really believe the nfl has done that very well. why don't you watch what the ratings are this year. >> with football the crowd jewel in cbs' fall schedule i asked ceo les moonves whether chamber of commerce in the ad slots which happens to be his most valuable ad time will impact his bottom line. >> we're paying over $1 billion a year as are a lot of our competitors so ad things are bert i think the nfl is looking for

ways to speed up the game. how do they handle injury time-outs, et cetera, et cetera? i think everybody is looking to improve their product including the nfl. >> i also asked moonves about the fact that this fall amazon will be streaming some of the thursday night games that will also be airing on cbs. he dismissed the idea that that could hurt cbs' ratings saying that he's confident that this year will be a better year for football ratings he also said the nfl is experimenting with all sorts of different things to try to figure out how people are going to be watching in the future kelly, back over to you. >> i like getting rid of those commercials. nba is doing it. nfl can toterm julia, thank you. julia boorstin -- >> reporter: maybe not getting rid of them. >> yeah. >> reporter: maybe not getting rid of them but making them shorter, having fewer of them, but something to make sure that poem don't tune out. >> amen. thank you, julia we'll see you later. julia boorstin our next guest knows a little something about the nfl,

john elway, the hall of fame quarterback and general manager of the denver broncos. he joins us now along with our dominic chu out in lake tahoe for the american century annual championship golf tournament dom? >> reporter: kelly, thank you so much john elway is here and what a great guess to segue into the conversation of the nfl and the state of the game. john, thanks so much for joining us. >> pleasure to be here snow heard the segment before us talking about the state of the nfl. as a guy who is deeply involved in running the operations of an nfl franchise, how do you feel things are shaping up for the game, and is it about the health and perhaps the profitability of that advertising market? >> well, i mean, i think there's always -- one thing about the nfl and why it's been so great for so long, it always adapts to new trends and obviously the ratings were down a little bit last year so they are trying to find something new as far as cutting back on the advertising and the amount of breaks, and i really believe that we're continuing to work on making the game safer, too, for the players, and so i think the game is as good as it's ever been

before the athletes are getting better and bert every year so i think we'll continue to see the game get better. >> there's a lot of different ways that the game is evolving right now from a viewership standpoint and marketing standpoint social media is stream amazon going to do those games how do you think a franchise like the broncos or any other franchise out there fits into that, and how do they kind of evolve with that changing landscape? >> i think our organization and business operations mack freeman, and jo ellis trying to do a tremendous job and stay ahead at the team level and then at the league level obviously continue to make big strides as you said, we're streaming games and playing more games over in europe and so i think, that you know, they are always trying to look for new ways to continue to keep getting the game bert, and the game is good, but, you know, as soon as you start resting on your laurels that's when you start taking a step back. one great thing about the nfl is they continue to work on trying to get better. >> john, mike santoli here in new york you mentioned that the league has always been good about kind

of modifying rules and trying to evolve the game. do you actually see the pendulum swinging in terms of style of play at some point, whether it's in response to rule changes further? obviously you have this complete emphasis now on kind of fast-paced, you know, passing game and all the rest of it. do you actually think any of that is set to evolve or should? >> well, i mean, you'll always see something. that's kind of been the trend over time, but it always seems to come back and, you know, i think we're seeing a little bit more of a trend getting back to the defensive side with the rule changes over the last several of years. it's been towards offense a little bit and things have been opened up a little bit, so, you know, i think all always see it go back and forth and where the rules are and trying to protect market a little bit more and the defenses are starting to catch up, and you may see it swing back the next week. >> mr. elway, i'm going to ask you, this is kelly here and the long life that you've had in terms of the business world and sports world we love to ask people what's the

biggest money mistake you made what would yours be? >> we lost her. >> we did -- >> we did lose her, so i think the whole idea of talking begun this is what exactly the biggest mistakes that were made in some of the financial investments that you made? >> you're not going to be perfect in my mind when you're investing, and one thing i've learned over time is i like to invest in people, and to me that's where i -- you know, there's a lot of tremendous ideas out there that can be very lucrative and make a lot of -- make a lot of money for people, but to me it's how those things get executed and how these ideas translate to the people that -- that are doing it, and so, therefore, i always look at the people involved. i look at the ideas but more importantly i like to know who is involved a who and who is goo do it. i found investing in people is probably the best idea i've ever

had. >> great ideas from john elway thanks so much for joining us here on the show. >> guys, back to you at the new york stock exchange. >> all right our thanks to you, again, dom and john elway for joining us today. you can catch him and the other celebrities battle it out tomorrow on nbc sports network and tournament continues saturday and sunday. it's the american century championship $300 million, that's how much the most expensive piece of art ever sold cost citadel's ken griffin. a list of his most other expensive holdings coming up, but shares of roomba-maker "i, robot" falls after iwat s shorted. you're watching cnbc, first in roomb roombas worldwide. [boy] karma, danny...

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welcome back auto suppliers are having a rough year they are feeling the impact of declining car sales and increasing competition from amazon you can see advanced autopars almost down 40%. our next guest announced his short on the gentex sending the stock down 2%. we reached out to comment from gentex and we've yet to hear back from the company. joining me to talk more about this in a cnbc exclusive is ben

actionler, the founder and chief executive officer of spruce point capital management welcome back to you. >> thanks for having me. >> you think gentex could fall how much >> we have a price target down 40% to through overstated methods the other aspect is the multiple we think the cycle is turning and the other aspect here is that the product could be obsolete for a number of years >> how does it stack up against the other auto suppliers >> the mote has been in mirrors. the problem is now that it's a fairly come modtized product, more sensors, cameras and d display, so as the car evolves, a the need for a mirror, which has drug from the terror yor point of view, we think it could be displaced >> so you think the back up camera type of thing and sensors elsewhere in the car are going

to make smaller market for mir mors >> i think that's right. customers are showing prototypes of cars without the mirror that's a matter of time. it's not going happen next week or next month or next year >> can they use it in a different way? >> fantastic point you raised. they have yet to announce a strategic relationship within the technology company we've seen intel require mobile eye. gentex is on an island not mirror, not display, not technology they're going to have to do something to stay competitive. >> you think there's something aggressive going on on the accounting side? >> correct we think the earnings are likely overstated as a consequence, the balance sheet is deflated. if we look at expenditures, you've noticed the expansion square footage didn't make sense. inventory has grown at three times sales, so when you normalize this, we think that the gross profit could be about

130 million. >> have you heard from the company about this >> i have not. i would like to hear from them they can reach out to us i think the fact that they're not commenting means they, they're probably lureluctant to of the thipgs we think are incontra veritablveritable. >> they're tradie ining about $ today. let me ask while you're here about i robot and roomba this got everybody's attention couple of weeks back, you said you think that i robot is a short, correct, because roomba is going to see lowered competition. >> it's emblematic of the short. both are xhodtized products, it's been on the market for 15 years. cheaper competition is coming in from chinese manufacturers finally cutting prices amazon prime day featured the

lowest price ever. sub $300 >> for the roomba? well, okay, so, i think a lot of the sort of basic level roombas might go 700, $800 my mom recently got a roomba want to be, which she loves. it's a bistle. it was significantly less than that you think there's going to be more of that to come and that i robot has the potential of losing the entire category >> our thesis is that shark ninja is about to enter. they're also using a low cost chinese manufacturers, which has dominate d the market and displaced the roomba in china. >> i can remember when it was coming public. we're a roomba company now, but we're going to be a a slir of all robots in the future what is the business right now

>> the business is vacuums and to your point, they've promised leadership in lawn mowing vacuums. ipg there's a misperception, it's a heavily retail traded name the core constitutions has been -- they've yet to deliver on anything. >> they have now the higher end products like an a p pp that you can control them and set the boundaries, it's more sf sophisticated technology is that something these cheaper rivals will also be able to offer? >> we think so in technology, things change fast and you have to adapt or you become less relevant >> thank you for joining us. good to hear your thoughts and still to come, hedge fund manager ken griffin puchlsed a painting for $300 million. that makes it the most expensive work of art ever sold. found out what else is citadel

founder has that's the most expensive ever taakng up on "fast money," reil me iing a comeback today and one technician has two names you might want to buy on the bounce he'll reveal them at 5:00. (upbeat dance music) (bell ringing)

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ken griffin set the record for the expensive painting ever bought and it's not the only mote expen, he joins us u and he's tallied it up. >> ken griffin now holding the title for paying the highest price ever for a work of art in 2015, he bought this piece called interchange for a reported around $300 million at the time, it was the second highest price ever paid for a work of art after a gogan that

sold for over $300 million now, court case revealed it sold for 210 million, so that makes griffin now the number one he also holds the record for the highest price paid in the u.s. for a home over $200 million for three whole floors of a new man hhattn luxury tower he bought the most expensive home in miami. that's the penthouse for around 60 million now, that's back on the market probably because he's building a home in palm beach that's believed to be the most expensive in all of florida. he spent 23$230 million on the land alone and plans to build a 55,000 square foot house that will be a bit longer than a football field and before that, he had the title of most expensive residence in chicago and paid the highest price ever for leasing manhattan office space for a prgs of a space that citadel will lease in new york >> okay, so this leaves a couple, michael, here's a couple of theorys one is he wants these titles

the other, he's not good at getting a bargain. the other, all are such unique megapuchs, there's no other type of comparison. >> in 2006, he paid $80 million for a jasper johns piece that everyone said was vastly overpaying that is now worth more than double what he paid for it he has offers on it for more than he paid for it. so, what looks like crazy overspending today in the manhattan real estate market could be a bargain 20 years from now. he's a very long-term investor when it comes to what he does personally i think >> right clearly, in his business and his funds, he would probably be more price sensitive, but these i'm assuming he believes one of a kind assets. 13 acres in palm beach not making anymore of it >> ocean front 900 feet of ocean front. that will never be done again.

it's crazy >> they should have a again book of ken griffin records bank earnings in the morning i'm going to get my brew beauty sleep. that does it for "closing bell." "fast money" begins now. "fast money" starts right now. live from the nasdaq market side overlooking new york city's time square, your traders are -- tonight, rumors of an iphone 8 delay taking the internet by storm this week but tstock is still rallying, plus, snap, a hot topic in sun valley as the stock hovers below itself ipo price. we'll tell you what the pbigges names are saying and later, karen stepping up to the pitcher's mound, getting ready to throw out