even if nothing happens, there are inquiries about missile defense systems. they could be seeing a pop in business in the next few months or so. so that should be one to watch >> thanks for watching power lunch. >> closing bell starts right now. hi everybody, welcome to the closing bell i'm kelly evans here at the new york stock exchange. >> a rare day when we're together. >> and happy belated birthday. >> thank you very much thank you. the celebration continues. by the way, i'm bill griffith, by the way, if you're new to the stock market, this is just a reminder in case you didn't realize it, stocks can go down the dow had been up for i don't know how many days in a row, many days, but not today disney shares are dragging the dow today after issues at espn once again headlined the companies earnings report.

the media giant also announced it is removing it's movies or will be from netflix and it'll launch it's own streaming service. we have someone who says launching a mini netflix could be more difficult than disney thinks we have a lot to talk about disney down almost 5% today. >> north korea, we'll get to that in just a moment. mylan warning today it's delaying product launches because of regulatory uncertainty. the latest data shows the drug approvals are on pace to set a record this year what kind of uncertainty are they talking about shares trying to stay positive we'll have the details coming up and blue apron is rallying ahead of it's first earnings report as a publicly traded company, that'll be tomorrow the stock is well below it's $10 ipo price. as you know, we have a debate on whether there is a buying opportunity ahead of tomorrow's news look at that, it's up 5% today >> well, it's at $6.11 right now. >> that would be a 30 cent raise. let's start though with this

very serious story, the tensions rising between the u.s. and north korea which are weighing on the market for a second day running here, the dow as you see down 74 points that's just about the lowest for the session. kayla is in washington now with some of the latest details for this day, kayla. >> bill, those tensions have escalated over the last week with north korea issuing threats to the u.s. in response to new u.n. sanctions and the president yesterday responding with a threat of his own. in a briefing that is still ongoing right now, state department spokesperson heather naurt said the diplomatic effort is working even as other members of the administration talk up u.s. military capabilities >> whether it's the white house, the state department, the department of defense, we are speaking with one voice. and the world is in fact speaking with one voice. and we saw that as it come out of the u.n. security council with the resolution that passed less than a week ago the united states, along with other nations, condemned north korea for their destabilizing

activities >> secretary tillerson on a multistop tour in asia sought a reassuring tone. stopping over to refuel this morning in guam. the u.s.er toir that north korea is now threatening to target, following the president's warning of fire and fury should provocations continue. it was a harsh statement drawn in comparison to president truman's reign of ruin remark as he dropped an atomic bomb. sarah sanders pushing back on reports the comments were kpreetly improvised telling the press pool, they knew in advance he'd address the issue in no uncertain terms. general kelly and others on the nsc team are aware of the tone of the statement prior to delivery the words were his own the president obviously choosing to ad lib a bit, though sanders saying kelly and bill will know that he was going to take a very strong stance on north korea >> all right kayla, stay with us. we're also bringing joel wit in,

he's a senior fellow at columbia institute for east asian studies. professor, thank you for joining us you know, so we're all sitting here trying to figure out what happens next how are you thinking about about this >> well, i think this kroiz is clearly escalating, but we're not yet at a break point where we're going to have a military confrontation. the problem is, it feels like we're drifting to that point, and i think that would be a very serious mistake. >> clearly, but is it inevitable what can be done in the meantime what role does china have to play we get around to that question, what china can do to try and deescalate this tension here what do you think? >> well, i've been working on this issue for 20 years. and in the u.s. government, outside of the u.s. government and i hear is china, china, china, the fact is china is not going to save our bacon here

because the chinese have other national interests, including maintaining a stable north korea. and that might not continue if too much pressure is on pyongyang. so china wants us to start a dialogue with north korea and so far, we're not being responsive to their requests. >> kayla, what is the feeling? the u.s. is being naive by believing that north korea is on the verge of some kind of u.s. strike or being naive to, you know, to think that that wouldn't happen? >> well, there are some questions, kelly behind the scenes in terms of exactly to what extent the cabinet members. we have the president talking about the u.s.'s military capability on twitter. we have defense secretary mathis talking about how u.s. and allies are unmatched in their military capabilities. he said that a couple of hours ago. then you have secretary

tillerson saying that he's still opened to diplomatic talks if north korea would cease it's missile test, then you have the vice president also seeking some diplomatic reassurance as well also guys, remember, there is no ambassador to south korea. there are a lot of these ambassadorships in that region that are still open, and that's something i think a lot of people are focussing on when you need real on the ground expertise in a moment like this. >> professor, so you've been studying these for 20 years, what would you do? i mean, if china's not the answer to this, and it's clear -- tillerson said the other day, we don't start talking to the north koreans until they agree that they're not going to fire any missiles anymore. already setting up some red lines there. what would be your beginning to find a solution here >> well first of all, i think it's true that we do need to step up pressure on north korea when they take provocative measures such as their missile tests.

so the u.n. sanctions are fine but what we need to do is also open an escape route for the north koreans, and that means starting a dialogue with them without preconditions. aye been talking to north koreans also for 20 years, and they will tell you they're willing to sit down and talk, but not if there are preconditions to those talks >> all right professor, thank you for joining us today and kayla, we'll see you later, i'm sure as this day progresses to the markets now, where can they find safety let's get to the exchange down 78 points right now. janet brown from fund exinvestment group is here with us at post nine, so is kenny from laneil securities and rick santelli i'm going to start with you my friend today because nothing is too exaggerated in this market anymore, but when you think about it, you've seen a slight

decline in ten year yields today. you've seen a slight increase in gold prices today. you know, the kinds of things that we would call a safety trait, stocks are down, do you see that as a response to these tensions with north korea or not? >> in this case i do, it's hard to refute when you line up the charts and the headlines at the yen, the swiss frank, good high quality paper and sovereigns and thus all the spreads are affected you could even make a case maybe some of the junk and the higher risk products were affected, but that could be a function of the drop and the end of the record in equities. but yes, it's there. the problem is or the issue is, is that they have a really small half-life and the moves really aren't that large. i mean, we're talking several basis points in treasuries, which isn't a lot and really, you know, right now we're only down two on the day with respect to tens. it did show up i think a bitin the ten year auction for very

counterintuitive reason, the marketed rally on flight to safety, and that lack of concession made for a really messy auction. but in the end, i really warned that if, you know, investors are trying to gain geopolitics to get better trades, better be really fleet footed. >> janet, that's what you were saying, these questions have been swirling around, and what's your response to all of that >> exactly avoiding all risk is actually a pretty risky strategy. so staying balanced with the portion you want to avoid risk, you could be on fixed income, you can use a tactical strategy. a lot of clients lack the tactical strategy. i think you've got to know that you want to participate more on the upside than the downside and be ready to get more aggressive. as it will, we know it will. >> where do you go for fixed income >> for fixed income, we're in floating rate, we're in high yield right now, we're in

strategic funds, fidelity has a good floating rate >> what are you getting? >> well, i know, like right now. >> did 5% over 5% the last 12 months when the bond market was flat so being in the right place at the right time, you can still do pretty well on fixed income. >> you mentioned, mentioned off the top here that, you know, meanwhile have the dow way down by that. there's a lot of company specific stories while all of this is percolating, put it in perspective for us. >> disney's down 5% you said today, the dow is down only 86 points, it'd be interesting to see what disney is contributing to the dow lost. if you take disney out, what is the dow really down? is it down that much that goes to the safety trait. when you think of dow stocks and the dow 30, the big america in a blue chip names. they'd be a place that investors to want find some safety >> what's interesting, we've had earnings disappointments before this one here but the market is

continued higher now the market is going to go down. >> now i think you have that -- absolutely, you have the geopolitical issue that has changed a landscape. when you think about it, your markets when i came in this morning, they were down 1.5% across the board this, you know, we're not even down a third of 1% right now >> and that's where the s&p probably gives you a purer read. >> that's exactly right. so i think the sense is as much as people are clearly concerned, i think that the market is assuming it's not going to blow out of control and there will be clear heads in the end will prevail. >> what are you going to do? typical person supposed to figure out what's going to happen here and react? i mean, what -- nobody has any clue how this could play out >> no, so i think as janet said, you know, you have to be tactical about it. you have to design a portfolio that you're comfortable, that you feel good, that's conservative maybe, maybe more conservative look what's down today biotech is down today. tech is down today they've taken money out of the

stocks. >> unless those are opportunities. >> ready to take it. >> at these levels, do you feel the market is extra vulnerable to a geopolitical problem of some kind kpch. >> i don't >> you're going to keep putting money in it. >> no, stay conservative, but, you know, when it does sell out, get more aggressive. >> and with a sell off could be sharp because if people get really nervous, they're going to take the cash, put it over here or bid way down low because they don't to want stand in front of a moving train so let me bid low and see how nervous the sellers get. you could see a correction happen quickly, then you have to be ready to react. >> you see the bounceback happens quickly too. i had that one day and i missed it >> as rick said, they've got a half-life. thank you folks. appreciate your thoughts on the market action. >> little more than 45 minutes to go. maybe half of the dow's decline is busy. >> i'm sure somebody in our research staff's going to tell us any moment now. >> i think it's around -- we were talking about this, eight points per -- i don't know

anyway, s&p's down six, nasdaq, look at that, down 36, more than half a percent today russell 2000 is down more than 2% we are going to discuss how generic drug pricing pressure will keep it back in the stocks. blue apron shares down 40% since the ipo in june. coming up, we'll debate whether to buy the stock before it releases earnings for the first time as a public trading company tomorrow or not. and we to want hear from you, reach out to the show via twitter, facebook, or send us an u'mail at nbcuni.com yore watching cnbc, first in business worldwide this is not a cloud. this is a car protected from storms by an insurance company that knows the weather down to the square block. this is a diamond tracked on a blockchain - protected against fraud, theft and trafficking.

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what has been lately a rare down day, the dow down 74 points right now. i think it was down 80 at the lows, we'll stop that right now with the s&p down about a quarter percent, it's the russell that's taken the biggest hit today, down more than 1% >> dollar's not even that week 93.5 mylan shares are trying to close

higher and announce it'll defer drug launches until next year. >> mylan is reporting a backdrop of a tough earning seasons for generic makers people coming into this quarter for mylan expecting potentially the worst. you have been seeing shares under pressure you can see the tremendous drop they took last week. saying that u.s. generic drug prices have been under pressure and will continue to do so coming down on that warning as well wells fargo putting out research last week and then warning about the mylan results this week showing that sales volume has been on the decline. you can see there months there, down 12% so this has been prettybad, an they expect that to continue also affected by increased competition for their epipen including their own authorized generic version they said they would launch last year amid the pricing controversy. they are going to delay some big generic drug launches until

2018, taking that out of their 2017 gooins. sending an uncertain u.s. regulatory environment right now. those are generic versions and asthma drugs so those expected to be big launches if and when they come and in terms of the uncertain regulatory environment, interesting one. the fda in terms of generic drug approvals is on pace to set a record year here after 651 last year in 2016, 633 already this year with two months more to go in the fiscal year. however, the generic drug approvals they'll delay until 2018 those are complex generics, similar to the epipen, but we haven't seen that competitor and that's where the fda commissioner said he wanted to speed up the fda >> i'm trying to muster sympathy that they're sad that generic drug prices are going down. >> that's true and interesting because you are hearing people warn they could come down so

far, you might start to see -- >> isn't that the point of the generic drug though. >> it is a point there's a great story from the "new york times" wondering if that's getting passed on to the consumer big discussion. >> let's talk about this more, meg, stay there, timothy, tim, welcome, is mylan overreacting is the regulatory process too onerous for them right now >> i think myslan going through a transition phase they have some interesting generic block buster products in the near future. you mentioned advair, others as well i think these are very tough to formulate products it takes longer to put the stamp of approval on them. i think 2018 could be a big year for mylan. >> so is the problem affecting mylan the same one that the whole industry is dealing with, or is it more specific to this company. >> absolutely, it's a

phenomenon i think mylan's business though is global. only about 40% of their business is based in north america, but they are the number one or number two generic drug company by volume. they too are facing price erosion. >> what do you contribute the stock's recovery today down 88% earlier today it has come back and it's starting to close in the green what do you think is driving that something substantive or covering >> well look, mylan cut their guidance and that was sort of expected they had already signalled that their generic business was facing pricing pressure and i think it was sort of a given that mylan would also face that same identical pressure when they reported their second quarter results. look, the uncertainty is baked into the stock price here. that's why i have a buy on it and a 42% price target >> look, i was being lib earlier about gee, they're complaining

that drug prices are going down, but is that a function of supply and demand right now or is something else going on here with generics specifically >> yeah, it's a combination of two factors. first and foremost, you've had sort of a lengthy process for generics to get through. they're more reliant on bigger ticket items because they're so large in the u.s. and their top lines are $15 billion or more. so, you know, my feeling is, it's a combination of the older based business eroding, combined with the fact that the timing of the newer products is really still maybe two to three quarters away. >> meg, does all of this have to do with the change in administration and what's happening? was this a concerted effort to speed up approvals

>> it's been something you've been seeing far little while you did see high approval. this is something the new commissioner has focussed on deeply and he is speeding up the generics as well we'll see in if that comes through in the next year. >> yes, we will. meg, thank you, as always. tim challenge, thank you for joining us as well 38 minutes left in the trading session. slowly coming back down 67 points, disney announcing it's going to pull it's movies from netflix, but coming up, whether investors should be concerned about that or if netflix is much morereliant on it's own original programming and speaking of which, oprah has a tv network own shelves in supermarkets we have new details on her move into foods when we comrit ck ay with us

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welcome back the dow is down 66 points right now, s&p's down five, nasdaq down 29 and the russell's down 16 >> and disney, we got the answer -- >> multiply by seven >> so it's accounting for 34 points in the decline there. so roughly half. >> yeah. the dow -- you could tell is otherwise outperforming russell doing most poorly today. big rebounds since the european session this morning and fossil getting reported a quarterly loss that was after the close yesterday. the watch and accessories maker also cutting it's sales outlook

of the cfo the shares are down 3 bucks or 25%. >> oh the watch business tough. oprah winfrey's empire is expanding, this time into a grocery store shelves. the famed tv host now working with craft times on a line of soups and side dishes. all under the brand name, ready, o, that's good see what they did there. the official ad campaign will launch in october and 10% of the profits from the sales will go to charities that work to reduce hunger where oprah is involved in the food space. she became a major stake holder in weight watchers a couple of years ago. kraft heinz and weight watchers moving high per. >> so the new brand names. they have this bar called goodness knows, what happened to just, one name, one word >> good food right. >> plus -- >> does it have to tell a story? >> here i am stating the obvious again. i've always been fascinated by

branding now if they had just put the food out thereto, they've got mashed cauliflower -- >> broccoli soup with sweet potato in it if they just put it on the shelf with the kraft heinz name on it, would anybody buy it oprah's name on it -- >> give her credit for the weight watchers thing. that stock has been up 3 or 4 x since she got involved it's exactly what the consumer wants. maybe just saves them a bund until markets from kraft heinz point of view. they might think hey it's easier to pay oprah than roll out a new line >> they came to her. and she took, she went for it. good for them. >> o, what a good idea >> and they're not connected again, by the way. let's get to the cnbc news update with sue herrara. >> hi guys, here's what's happening everyone five transgender soldiers filed a lawsuit against president trump over his transgender

military ban secretary of defense james mathmat mattis is also named in the suit they have nearly 60 years of combined military service. multiple rail cars derailed in topeka, kansas, this morning the rail cars were flipped over on their side after skidding off the tracks no injuries though were reported. a simple frown on your face at walmart may one day alert employees that you need help making a selection or finding a product. a recent patent filing suggests that walmart may be working on a video system that keeps tabs on shoppers it would scan for customers who look frustrated or unhappy and bruce springsteen will make his broadway debut this fall with a solo show titled, springsteen on broadway. it loosely follows the ark of his life's work, featuring him, guitar, and piano. it'll run five times a week starting in october through the end of november.

all right. that's the news update this hour kelly, back downtown to you and bill. >> i am stunned. you tell me, you're telling me the boss is going to commit to five days a week. >> five days a week. for a limited run. >> how long? >> one month >> okay. for a month, but still >> seven weeks. >> okay. that's pretty awesome. >> i think it's going to be fantastic. >> that'll sell out quickly. >> are you kidding me? go see -- i just found out about this i'm going to get tickets there thank you, sue >> you got, bill >> over here at the tell straiter with mark newton. we're talking about the dow, especially on a weekly basis, it has caught your attention. >> yeah, yesterday was the first example of some sort of exhaustion we've seen since the middle part of july. and the dow moved up almost to 22.80 i believe, all the way back down towards lows every day since mid-july, stair stepping patterns, today was -- yesterday was the first instance of exhaustion created all the way up and closed down at a loss for date often times that signals that the market really needs to start

to pull back a bit and consolidate gains. >> but how much -- if something like that happens, okay, so maybe the arrow goes down far while, how do you know when it goes back up even europe, most peeked down in may and if you look at weekly charts, this is the larger trend in perspective, at least initially though, you get down to 218 or so, we have due to have cycle lows. >> from where we are right now >> at least initially, this is more like the straw that broke the camel's back the warning sign, the weekly chart puts this in perspective, and if you look at how things shape up really on a larger perspective, you see that this area is the bigger trend really from the last year from last winter so the longer trend still very much intact, now you see some

breath diversions. trading range in the last month. you have half above the ten day moving average and we've all been talking about the dow every day. dow is going up and up and up, the dax has not done that. a lot that have not followed suit that's the important dwerges that's good for investors to pay attention to not necessarily all about the dow. if anything now, this is putting things in perspective. this is the shot that suggests at least a near term correction could be upon us pick up in volume and my thinking is, august through october, we could be in for a little bit of a rough spell. >> all right mark, thank you for joining us mark newton. bill >> thank you so much 29 minutes left in the trading session here at the dow down 74 points when we come back, we'll discuss whether netflix's original programming is strong enough to attract new users, even as disney announces plans to pull it's films from the streaming

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hello, you want me to do the netflix shares lower after they plan to pull it's movies from the streaming service, just how reliant is netflix on disney for content? julia is here with the definitive answer. julia. >> well, bill, i just asked netflix that question and said no single studio accounts for a disproportionate amount of viewing. jpmorgan estimates that the content only accounts for a single percentage for viewing time and they don't expect the departure of disney shows to have an impact on netflix. it'll spend $6 billion on content this year, and they're aiming for half of the content to be original and exclusive to netflix. what makes this so complicated is that some netflix originals are produced in partnership with the studios. so here's what netflix will lose in 2019 when disney's new app

launches it'll lose live action and feature films as well as older catalog films, but disney's marvel will remain a netflix partner, netflix will hold the rights to six marvel tv series netflix has been moving away from reliance on the traditional hollywood studios. they have also decided not to renew their licensing deals. that's why netflix made it's first ever acquisition monday buying miller world. content chief ted saying on netflix the last earnings call quote, the success we've had with our self-produced shows has given us a lot more confidence to expand it because we're a global network and those rights are really important in terms of being able to control our own destiny. also said that net tlix wants to be able to put the best programming on it's air and knows the media giants would want to keep that for themselves kelly, saernl hot area >> they would, for sure. thank you. for more on what it means for netflix, ed lee is here.

and michael olson from piper jeffrey has a $215 price target. you get concerned about the future of netflix's content library? >> i don't, i think the was a need to have that's what we estimate the content spent for netflix's on disney we also think the viewable hours of content on netflix is somewhere in that low single digit percentage, so i think down 2 to 3% is right on the money and i would say the slight decline is exactly what it should be. >> having said that, you think this is a big deal >> this is a big deal. this is a seat change for disney more so than for netflix they've been on the content kick they've had in the pipeline, the acquisition is part of that thesis of course, but for

disney, this is a sea change, it's changing over the next few years, how their business model works which is relying less on the cable distribution guys, and also netflix and then doing it on their own big question mark as to whether they can execute on that >> i was saying yesterday, what took disney so long? >> what took them so long? they're one of the biggest players out there in the media so this could be the start of other things to come whether it's via come or cbs has already got their all access thing. time warner now part of at&t, there's a big chance that they go more over the top as well you kind of -- everyone was waiting for the one big player to make this jump, now that they've started to do this, chance all the others will. >> 400 cable channels to -- >> to 1,000. >> streaming services. >> and pay for them all individually and then like wait a minute, if i can pay for all of these -- >> wishing we had the old days back >> we're going to have the bill griffith bundle for too long here >> at the same time, you should also look for when he does do this, there's a chance they might partner with amazon where

you would get the disney content through amazon prime as an upsell you would be paying disney for it >> while julia was talking about the acquisition, it all becomes a little clearer now, pieces start to make nor sense. do you think netflix will be buying more services like that or is it just more original content coming >> i think it's a combination of both i think we'll absolutely see them doing more acquisitions, i think if you look at their goals, 20% of content was originals last year as far as what they spent. they're expecting to spend 50 pact of their content budget on originals over the next few years. so huge uptick, and that's what hay need to do this deal gives them storylines, characters, things that they can build off of in the future that no one else can use. i bont surprised to see them doing more of this i mean, this is essentially they're taking ironically taking a page out of the book with disney's purchase of marvel.

it's the same thing. >> they're partnering with david letterman. >> marcus, that's not necessarily a part of this thing. what's going to pay for streaming service, families. so mom and dad are going to want to watch something as well bund until marvel and lous can, that's a bigger thing. >> where does it leave the traditional partners it's going to go into negotiations knowing it's trying to go out on it's own. >> it's going to be tough. just tough going forward, remember though, espn, abc, it's still going to be part of the cable service package bundle, but it just gives them the opening for the next step, the next phase where those things might be pulled off as well. >> just started disney cable channel. oh wait. >> right thank you. >> ed lee, mike olson, thank you for joining us today we're watching the evolution of life as it continues here. 20 minutes left in the trading session. the dow down 59 points right

now, the bitcoin boom continues. now one of the biggest names with main street investors is jumping on the bitcoin band wagon. not everyone thinks that's a big deal we are at the height of summer, markets are at record highs. you could say the the living is' kbri unless you're a wall street trader >> bob is going to explain that next

the sun for wall street, right not so fast. that's what bob is saying. he's here to explain >> i keep getting calls from my wall street friends, they're getting laid off, it's a summer of misery for traders because employment is shrinking. the head count among wall street traders is down 21% in the last six years, and it's continuing to shrink. what's behind all of it? well first there's another record year of low voltyty that's a problem stocks may be new highs, but there's little intraday movement volume would pick up as stocks hit record highs voltyty, down 41% in the u.s. and the second quarter europe, japan down as well low volatility means less

trading. that's why the traders are not doing well volumes and volatility dropping across the board from the u.s. and europe and japan throw in oceans of money leaving active management for passive, the growing use of artificial intelligence and traders and hedge funds are suffering through another year of slow business they're also taking pay cuts, pay is down 5 to 15% for equity sales traders just for 20 to 15 to 1016 and still dropping so is it over for wall street career no, but forget about the traditional analysts and trading jobs, ups tells me they're hiring psychologists and pricing and shipping experts to compliment their research, others are hiring social media consultants and computer geeks who can write code for complicated algorithms doug, one of the biggest market makers in the world told me yesterday, we're hiring physicists, we're not hiring ivy league athletes. there's still employment on wall street >> this is fine. psychiatrists and social media >> that's because they're trying to figure out how to interpret

twitter feeds and interpret that into what people might to want buy in the stock market. which i consider a very precise business to be in. >> maybe nobody know's the answer, but how far along are we in the process do we think >> employment was at 67,000 a few years ago. these are trader head count among the top ten banks. it's down well into the 50s now, down 20e %, and if the trend continues, i can see it down another 10% in the next two to three years. >> i understand it's bad out there in the equities business look at what virtue said the other day, on the credit side, things are strong. and i wonder even if that's not the business it once was, you have charter doing oversubscribed dead offerings. tesla which is junk rated, and for august in general which is usually a sleepy month, there's been a ton of activity and so, that is usually a much bigger part of a big overall financial markets anyway >> interest rates are low, even

the cheap kind of debt even the companies that don't have a great credit rating here's the problem with, that's good, how about the trading end? they're automating bond trading now. that's the last thing that's held up. a lot is still over the counter, and now as we have companies throughout pushing automated bond trading, you're going to see the number of traders in that area drop as well i completely agree, you're right, issuance is great, that doesn't mean the number of guys who are trading bonds is going to increase. >> i don't think you're going to see that >> right. >> by the way, you've already registered for the springsteen on broadway ticket zplps it's like a lifetime thing. you get the updates and the digital -- you get the digital bracelet we'll call you on august 30th if you're around, don't go away >> leave it to him to be in line, virtually speaking >> we'll talk. so thank you, bob, see you in a few minutes for the closing countdown. 12 minutes to go, dow is down 51 points

it's moved off the lows when it was down 80. the nasdaq down 23 russell down 15. it's been a comeback today, the russell down 1%. >> so far this year, it is the least loved ipo on wall street, but blue apron's earnings are due out tomorrow and up next, a bull and a bear we found one of each whether u ou o ts ocorotcong up.ldwnhi entertainment right here. right now, when you get the incredible iphone 7 from at&t you can get unlimited data and live tv. the channels you love. your favorite shows and movies. making your iphone into more of a... oh my tv is ringing. hey...i'm in the middle of a...a second iphone from at&t? okay! right now when you buy a new iphone 7 from at&t you'll get a second iphone 7 on us. and power both with unlimited data and live tv.

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told us that the market on close oersd show an imbalance to the biside to the tune of $400 million. we have been coming back here. the dow essentially cutting it's losses in half to this point, we're down 44 points with about nine minutes to go shares of blue apron surging more than 8% today, the company's set to release it's first earnings report since going public that'll be coming out tomorrow before the opening bell. company certainly has a lot to prove. the stock has lost almost 40% just since it's ipo, and let's all remember, that was just in june >> is it a buying opportunity though, or is there just too much competition out there joining us to debate, who's a believer in the company and scott gaalaway from nyu stern

school of business here with who begs to differ michael, first word on why you would be bullish on blue apron and you've got only, you've got $14 price target how do you get there >> they have a new and better way of offering dinner to american families. you know, these customers can sign up for the subscription service, get a meal kit delivered right to their door. for $9 a serving for person. which is, you know, very inexpensive, relative to most other options. and, you know, i think this is a business that has shown a lot of traction they already have a million customers, but they only have a million customers. and i think there's a lot of room to go for the company to expand and they haven't had a chance to tell their story in a meaningful way and we'll see that tomorrow for the first time >> scott, we only have so much time for you to tell us why you're bearish i can imagine there are many reasons, give us a couple of for

instances. >> i'm largely in agreement with michael. i think the promise of blue apron there, unfortunately the more we learn, the performance isn't matching the promise we have a company that according to bill mccarthy and assistant mark marketing professor did great analysis they had a 73% in the first six months you have to reinvent every 15 months and start over. two out of three consumers shop within a year. one out of three at way fair which is burning through cash. blue apron's one out of five. >> and their acquisitions costs are high too >> exploded to $400 for consumer $200 million company, break even, 250 million, losing for 50 million. all the metrics are headed in thewrong direction here. >> michael wants you to answer that and tell us which one you're most focussed on in the report tomorrow. >> i think the data that is being referred to comes from the company's s 1 n. one of the nuances i think people are missing in that data is it includes some customers that were added three years ago.

very early on in blue apron's life cycle i think that the retention and the engagement have got an lot better the company is also launching a big product expansion, so they're going to be getting customers a lot more options in terms of how many meals they want per week and how many recipes they can choose from per meal and we think that's going to drive, you know, much higher engagement going forward and it's going to help to alleviate a lot of that. so, you know, we're going to be looking for customer growth for sure, and we're going to be looking for, you know, more discussion around customer unit economics. >> i don't have much time, but michael, do you use blue apron >> i do. i've been using the service, my family and i, for a couple years now. and we like it a lot >> have you tried others >> we've never tried another meal kit service partially because we haven't seen -- >> due diligence. >> do you use it >> i love blue apron, it's $50 worth of service they charge you $30. horrible for shareholders.

>> you like it as a consumer >> it's like guilt, there's no business model in that just as there was no business model in spending $11 for one dollar in sales of pets.com. >> okay. thank you, guys. michael, scott, thank you both for joining us today we are coming back with the closing countdown with the dow down 50 points then after the bell. we've got media earnings continuing this week this. 21 gs century fox's numbers and instant analysis yoreatincn fstn siss worldwideir i ur brain is an am. but as you get older, it naturally begins to change, causing a lack of sharpness, or even trouble with recall. thankfully, the breakthrough in prevagen helps your brain and actually improves memory. the secret is an ingredient originally discovered... in jellyfish. in clinical trials, prevagen has been shown to improve short-term memory. prevagen. the name to remember. your insurance on time.

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okay inside two minutes now as we head towards the close with the dow down just 48 points. i want to go back, let's set the stage here this morning. from this morning. i don't to want make too much of this, but we did see a sort of change in tone in the trading and you might want to call it a safety trade okay so we start with the vix enyou can see the change in the tone the vix we know has been trading well below ten for a while, and just in the last two days here, now we're suddenly at almost 12. the ten year yield i think that was a six week blow i heard, but complicating that today was the ten year note

auction that we saw. but you see that decline there in the last day and a half for the ten year yield gold struggling a little bit, but just in the last day and a half, up one gold, so we had a bit of a safety trade there as well and then the last piece of the puzzle, of course is the stock market, the dow had been on a terror, albeit a small stair step where it was up 10 or 11 straight days and we were lower. >> i think the question right now is are we dealing with a rational actor in kim jong-un? we don't know. and i think that's a lot of game theory going on about what kind of person we're dealing with oil is up, and yet no traction from the oil stocks. 52 week lows on a lot of big oil names like range resources and noble and chesapeake there we go. that's an issue. we also had some new highs, of course, there is a play here, the defense play as you've been mentioning those the obvious ones all 52 but this has been happening long

before they were reliably on the new high list in defense names for quite a while now. i'd also note, volume not really very heavy here. so yes, we're down, but i can't say there's anything in the mechanics right now. >> thank you another down day second consecutive with the dow down 31 points stay tuned now for the second hour of the closing bell see you tomorrow, kell thank you, bill, and welcome to the closing bell, everybody, i'm kelly evans with quite a day on wall street here's how we're finishing up. just decline of less than a fifth of a percent the s&p 500 almost turned positive, it closed down just a point at 2473, the dow at 22,047 how about the nasdaq shed more than a quarter percent today to 63,052 and russell, small caps were the worst

performer. still below 1400 record high was 1450 and they closed today at 1396 now, we have more earnings headed our way after hours we have 21st century fox ahead of it's earnings, trading a little bit lower we're going to bring you the results as soon as they are out. and fidelity is making a big bet on bitcoin and so is josh brown. find out what's behind both moves coming up. joining me on the panel today, we have cnbc senior markets commentator michael san toely here, hello again. dennis berman, whose financial editor at wall street journal. michael, there's an interesting pockets. look, this whole market overall, we've talked a lot about what's moving and what's not. but not only have you had so much corporate news. >> yes >> all of the big changes, it feels to me are happening in stock-specific stories whether it's the future of media. look at hertz today and the whole backdrop of course this

morning concerns about north korea which seem to have evaporated >> all of these areas are kind of being put aside and in the penalty box by investors whether it's media with disney, obviously retail, generic drugs, you could throw them in that category as well all of these unvestable things are put aside, and yet the overall market at the index level manages to hang tough. not a flight but a very slow shuffle away from risk the market has softened up from the inside out i would say a marngt of stocks are not really all that close to their highs, but the overall market holds together, it's been unable to sustain any downside momentum so far. we'll see if the rest of august has a different story to tell. >> yeah, dennis, major moves today. david was reporting on this potential deal between them. meantime, you have disney saying it's going to offer it's content on it's own. you know, and at least a lot of it, and not on netflix so as i said, you know, in looking at the big move in hertz

today which has been hammered using uber and used car prices are down so, it feels like the future soft many different industries is being determined in massive moves in the stock market that are just not showing up necessarily on the surface, right? >> it is, it's against the media, if we're talking about a bundle world disney's trying to prepare for it you have to imagine that the main fox news channels have done pretty well. in a post-bundle world, what do companies like fox and disney actually look like it's going to take more than a few quarters, but i think you're dead on, kelly, these are the moments when people have to assess what was the bedrock of my belief about a given industry and must i change that the disney's ceo and the disney board as changed that. how must people as investors make the same recalibration? >> right, or maybe for retail. look at bill miller. i changed it too much. let's get to the 21st century fox earnings out joule j ya has the report, julia. >> that's right.

fox beating bay penny per share, coming in at 36 cents, analysts were expecting 35 cents, revenues missing estimates just by a hair coming in at 6.75 billion in revenues. estimates were for 6.77 billion in revenues. the company highlighting that is continued to grow his cable channel and television business through 8% growth in affiliate revenues and 5% advertising gains. they say they are all positions these businesses for the future their inclusion in the core bundles of new digital and entrants i'm sure on the earnings call kpaumg coming up there's going to be plenty of conversation about what disney just announced yesterday and how, how fox plans on following up on that continuing to dig through the results here but cable network programming showing a 77% revenue increase and just sort of using that to look at what's driving those results there. and then we also saw that cable network programming continues to

be the biggest chunk of the studios revenues as well as their earnings back over to you >> yeah, there's going to be a lot of stuff on the call from how the politics is affecting it the news cycle turning down a settlement. just to translate, about the media business, you said the company is highlighting the fact that it wants to be on these core bundles, right, is that a nod towards whatever new streaming offering there is, we want to be in the middle of it >> yes exactly. so, fox is of course is one of the owners of hulu, hulu just launched their own digital tv bundle they're participating in the tv youtube bundles here we'll hear more on the call about how they're going to make sure that they are going to be able to continue to grow by being part of these digital tv bundles. so, with a decline in traditional tv subscribers, there is a lot of focus on all of these calls about making sure

that these channels are included in the next generation streaming live tv bundles. >> all right julia, thank you we'll check back in with you in just a moment. anna, owners of 21st century fox. anything to add here >> we are. the only thing i would add is i think the expectations for fox was lower than it is for disney and some of the other entertainment companies because, their affiliate fees were lower. so they had room to grow both on the affiliate side and clearly viewership is strong there so the one thing i want to listen to on the call that i haven't heard anything about is where are they at with the sky deal >> right that's a major one michael, what would you say? >> the stock has been trading along with the prospects for closing that deal. the company just mentioned obviously subject to continuing approval process so i don't know that it's really gotten incremental information on that. i do think that obviously all the media companies are saying yep, media bundles our stuff is essential, and no skinny bund sl complete without

our networks which sproebl true -- >> also means it's not a skinny bundle >> exactly it's not very skinny also i think there's a big question when it comes to all of these company doing direct consumer, cbs and disney yesterday, i mean, cbs is a news product. >> exactly >> it's not necessarily the core, of course there is fox sports, they've been trying to build that up on cable, maybe that could some day down the road by a possibility there. stock has been under some pressure just along with the other media stocks and it's cheap, but not as cheap. >> dennis, we had this discussion the other day, there was strong growth, i forget which company it was in entertainment, but we were looking for -- there was strong growth in the news business but we were looking necessarily for if that was political, cycle driven, or if it's a stand alone. if you hear from netflix, we're not interested in the news business is there a lucrative, central integral part of for tv news in the future of all of these

bundles do you think i don't i don't think you can dismiss cnbc, fox news, cnn, these are decent contributing businesses they are generally part of the core bund until most instances and they do bring in some advertising revenue. so i think they're here to stay, but as the profitability they've been enjoying for decades there in the thing i think that becomes a bigger question and again in the bundle world. that would be a fascinating exercise >> i know, i almost wonder if you could potentially have access to all the possible channels, michael, and you watch whatever you want and they bill you later. >> that's been one of those dreams basically metered television >> right >> and as far as i can tell you, never going to happen. >> yeah, we're just shooting the breeze here. >> you can dream and let's pick -- oh, let's go back to julia for one second

with a little bit more on this quarter. >> yeah, just to your point about where fox sees the future, there's some commentary here in the release about how the company continues the expansion of video offerings by interviewing nonlinear packages under fox plus and fox premium now linear, nair all tailored for specific markets and offering more choice they also said they relaunch their sweep of authenticated apps by paying for paid tv subscription now also something they've seen further penetration engagement of it's hot star platform in india, watch time increased 300% in the photograph, a lot of focus on fox's international strength and the big push overseas to go direct to consumer they also highlight here, have fox sports broadcast viewership grew 25% over the prior year for having a 20% increase in television segment contributions, that's because of

the successful broadcast of the super bowl as well as major league baseball's world series we do see that fox shares are trading down nearly 2% there and that looks like potentially because of the revenues missing by a hair. back over to you >> all right julia, thank you they have reversed lower for the moment that does beat what analysts were expecting, three cents per share. revenues stronger than expected. outstripping analysises expectations for 55.5 million. elf beauty also reaffirming it's 2017 outlook and the gross margin, nice expansion to 64% from 57% last year kelly, back over to you. >> courtney, thank you shares lower about 4%. and you like this selfie play, right? are we oversimplifying the story

dramatically to call it that >> well probably, there's been a lot of innovation in make-up and i think that's helped a lot of online videos of how to do new things with make-up, contouring, highlighting, et cetera, that all helps and the selfie generation, more people taking pictures of themselves you want to look good when you take a selfie. so although that's not my generation and i don't do it, i certainly understand the need for more make-up i think, you know, they're doing a good job trying to expand their distribution we're owners offest day, certainly beneficiaries of buying companies, smaller companies that have developed good brands as well. >> let's zoom out, ann, for a second and reflect on these markets for a minute plenty of individual names and more earnings to talk about, what do you think overall is a theme here in this august where the volume and the activity has been kind of light we have massive gee yol political concerns in the backdrop >> yeah, you know, it's been kind of a frustrating market, funny enough, we were reaching all-time highs at the beginning of the week, and that didn't

necessarily make me happy. i think what i want to see is more opportunity, i wouldn't be surprised if there were a correction in the market i'd like a 10% correction. i think the risk of something bigger happening would have been much lower if we'd get a correction in multiples. tax reform, that would be a positive but right now, the market does have a lot of fluff in certain areas. and it's harder to find opportunities with good risk/reward. >> dennis, you know, i was going to bring up the journal, then i remembered i have you so i can definitely bring this up >> okay. >> the other day, it was a couple days ago, there was, you know, you had jason talking about how no individual investors are in the market with three different articles with people saying you should get out of the market because it's about to collapse. not laughing, but pointing this out too, that has been the theme all the way up, hasn't it? valuations are too high and this can't continue, and as a result, everyone's kind of waiting,

saying, now i can't get in now i've got to wait for a pullback, but i'm not in it. >> know. it's a tough conundrum as mike knows as well as anyone, these are stretched on the relative historical basis. this is a nine year or eight year stock rally where does it end and why does it end and i think the key things are this, tax reform, we're looking basically at the beginning of 2018 for possible tax reform if that does not come through, can the market sustain itself? and the geopolitical worries i find it fascinating, we're on the brink of apparent nuclear annihilation and everyone's kind of chill about it. >> well, i don't know if i'd go quite that far >> at least the market is, right? really did not move in the last couple of days >> are we on the brink -- you know, there's been a lot -- >> the market went straight up through the '50s and '60s, we thought it could happen any moment i don't think that's necessarily fitting into the calculous of the moment in terms of how the market's pricing itself. i would say kell though, i think the idea that the individuals

out of the market is kind of expired to a large degree. if you look at the t dia her trade investor index in terms what have their customers are doing, it's by far and away an all-time high. record openings at schaub in the last quarter i think people are in, they're just not feeling kind of greedy and exuberant about it it's just a participating and so i think that you don't always get that kind -- >> you know, if you're pulling investors who are already investors, is that really -- >> account openings at schaub is people deciding they want to invest in the market slightly. >> and kelly, by the way -- >> the td thing is activity, it's not opinion >> not overall what were you saying, dennis >> i think there was a difference here about how they're participating in the market we've seen i think probably each marginal dollar in the narcotic is throeing through a passive product which you could say arguably a different effect on the market which keeps an artificial floor under things. that is how the market is different today in 2017 versus

august 9, 2007, ten years ago in which -- >> yeah, that was when you guys -- >> things started to bubble in a really serious way about the financial crisis only fully reelzed a year after that >> it still feels like yesterday. i wonder if that's part of it. thank you for joining us we'll let you go dennis and ann today is it becoming a bitcoin world? maybe that's where all the excitement initial coin offerings with bigger -- >> and chinese internet stocks >> in the midst of the boom, one is jumping on the band wagon we have details and debate next. and the google adversities are looking. should the author have been fired? silicon valley insider and a veteran writer will weigh in, coming up. and we want to hear from you. are you new this market? reach out to the show and send us an e-mail, closing bell at nbcuni.com you're watching cnbc first in

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bitcoin as we know, they're allowing clients to view their bitcoin holdings through coin base it's a digital platform that lets users make tractions with their digital currencies for more on this move and the wisdom, let's bring in brian kelly of brian kelly capital management of a also author of the the bitcoin big bang, nice ill lit ration and josh brown who is ceo of wealth management. and josh, as i understand it, you've take an bitcoin position yourself >> yeah, but like two weeks ago. so i'm already a genius, kelly >> so you -- you had top ticked it, do you expect this to play out either way >> 2300 or something, i'm in so -- >> okay. >> so i got my instant gratification, i should walk away, you know me, you know i won't. >> let me go back to brian for a second on why fidelity, brian, would put up on it's website the ability for people to -- what

exactly are they going to let you do know? check the price, transact with it, what's happen hearing? >> coin base is essentially a big coin broker, similar to your how fidelity has the brokerage so what fidelity has done, they hooked up with them. you can see your balance, coin-based balance in your fidelity account why fidelity they've been accepting it in their cafeteria, abby johnson, the ceo of fidelity is a big bitcoin believer if it you will. i know they've been working on the background in mining so they've been in it and i think they share the view that i share, this is an entirely new asset class for wall street and investors. >> okay. josh, what if i were cynical and said hey, fidelity is doing a great job of using this to seem really cool and, you know, attract millennials or whomever to it's website and, you know, maybe they're even doing them a disservice if the idea is this is just as legitimate investment as, you know, typical old school investments for your requirement. >> kelly, you're asking the

right question, and i think it's important to point out two things, the first is, fidelity has already been stung, and it ain't going to happen again by the idea that they can just sit back, keep doing what they're doing and all of these innovative things are happening around them. they missed etfs, they have the spartan brand of index funds >> you still need to have a coin-based account outside of fidelity, all they're doing is bringing in the value of your bitcoin, how many you own, what

it's price might have done today or yesterday, showing you alongside their brokerage account, they are not in the business of transacting bitcoin. i think it's an important distinction. >> i see what you're saying. >> maybe i can one up your cynicism kelly a little bit and say, this is fidelity saying hey, let us see what you have in terms of money away from the firm fidelity are participating either in a defensive or experimental way they like all of us don't really know where this is headed -- >> the total -- but you're right, the total bitcoin -- we're not going to call it a market cap with a straight face. the total a. u.s. dollars on bitcoin cap is like what, 50 or $60 billion, there is not a lot of money there for fidelity to move over. so i don't know if it's quite that cynical, but i do think

mooi skal right in the sense that, they want to make sure that if people are opening accounts elsewhere, for other, i can't believe i'm saying this, asset classes that they do have a window into it and they are showing their customer that they're on the edge, and that they could be the center of it all. these firms, they have to be seen as the quarterback as investors -- >> absolutely. >> all over the place. >> and so brian, let me bring you in here. have we bashed it too much or do you know -- josh has been pretty even handed actually what would you say is the kind of the wizard of oz. about this bitcoin stuff? there's a lot here >> if you could buy a piece of the internet if i agree with you guys i in the sense that fidelity needs to be millennial centric or at least have a product or have an kbrd of what millennials are investing in, but this is the

millennial investment -- easy for him to say, for the next couple decades >> but brian, just like -- you made the analogy that you wanted to invest in the internet in the 1990s, a lot of people did that and got burned as a result >> same -- you could invest on the infrastructure of block chain totally, i mean, you could invest in probably municipal sewer and water systems and have done somewhat better than if if you just bet on the next thing isn't block chain the real transformative technology and bitcoin and all of these other coins are just an interesting new product that by the way, still has high transaction costs. >> no, no, that's what everybody is missing about that. block chain is the technology behind it, but bitcoin, the currency, is the economic incentive to run the network without it, all you have is a really fancy data base so what people really missing here, this is not centralized, it's decentralized, how do you economically incentivize

somebody to actually run this network and you do it with the currency >> let's ask you to go back to what fidel city doing here, brian. from your point of view, does fidelity being involved, do they add value? does it help legitimize, what do you think is the importance for the bitcoin point on this or is it relevant? >> no, it's extremely relevant first of all, fidelity has a fantastic brand. putting that brand on bitcoin is extremely helpful, adds awareness to the asset class, so it's a huge move forward and i think, you know -- well, there is still this kind of winning hearts and minds and educational and comfort process that people need to get used to in this asset class, and i think by fidelity having it there and you seeing it is a huge move forward. >> okay. that's why, you know, josh, i hope -- josh, why did you start buying this? >> i don't know if i'm comfortable with the asset class because asset class imemploy plies that there's some sort of

asset-backing it or some sort of cash flow so we could say we expect this much cash flow from our investment in this asset class and discount back what we think you should pay for it today. i'm not sure if i'm quite there yet -- >> i'll get you there, i'll get you there, buddy >> brian's a hippy, and that's fine and i might end up where he is today, i'm just not there yet, however, this is the main thing that i think regular investors who don't fly to work in a rocket pack should be thinking about. any time something refuses to die after crashes, hacking, break-ins, the silk road scandal, it just will not die. and so just purely based on that resilience or that antifa jellty what taylor would call it, you've got -- >> now who's dropping the lingo. >> does that mean, does that mean take a substantial portion of your net worth and throw at digital coins because someone's calling it an asset class.

however, get comfortable, get comfortable transacting we buying, hold, don't ignore it in case brian is right. the jury is still out for me >> you're hanging a lot on brian kelly. >> i'm good with that. i'll carry that weight brian kelly and josh brown, pleasure appreciate it. >> thanks kelly. do you own bitcoin yet >> no, i don't the psychological hedge, go buy a powerball ticket someone's going to win and by the way, i don't think it's the same as a lottery ticket i respect josh's point, because you don't understand it, doesn't mean it's wrong or not doesn't matter >> i'm not buying a lot toe ticket either. all quieter today on the north korean front after yesterday's heated words where the two countries and the world could go from here there's also an old saying, that you can never have enough of a good thing, but some wall street analysts are not sure when it comes to starbucks keig aerhi tay ft 'sas ta rhtft ts. ( ♪ )

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(upbeat dance music) (bell ringing) welcome back more earnings this time on live nation let's get to julia with those results, julia >> live nation beating on the top and bottom line revenue growing 29% to $2.8 billion. beating expectations of just $2.37 billion while earnings of 29 cents per share were ten cents better than expected trading volume has been relatively light, but the stock is up now more than 5% in after hours trading. driving those results, record consent attendants

total concert ticket seams through july are up 22% from last year and during the quarter, they increased the average show attendance by 11% with every venue type delivering higher attendance. also noted that their investment in food and beverage initiatives that amp athleters are paying off saying they expect to increase an sill area spend by $2 per fan this summer they expect to grow live nations fan base up to 80 million this year so certainly a lot of excitement about live events, kelly >> yeah, and the concessions that go with them. julia, thank you and it's time for fast take today, shall we? we begin with a telecom deal weighing a bid for charter now that soft bank is sniffing around the deal could be up to $200 billion in size, michael, what do you thinkcharter and liberty want here? >> obviously a fat premium charter is from a position of strength, they're like kind of the one known non-family

controlled really cable operator out there. but they also believe they have a pretty clear path to increasing value of their stock on their own so, you know, it seems like a long shot, but as david was report, just to raise enough debt, have enough cash to buy charter is tremendously difficult right now. >> yeah, just went public. we'll see how that one plays out next it's approach is to double offer points or triple them for people with higher bank account balance and the annual fee is only 95 bucks. that's well below rivals >> i think it's in a smart, maybe risk adverse way of saying look, it's an add on to customers who are going to have other products with us these are expensive cards to run. >> the first one to me at least lines up with the business model. i don't know about the stainability ultimately of the others jpmorgan said it's fine, it's fine

>> i don't know if the balance is are going to be high enough if they are, i bet they'll sign up a bunch of people starbucks got a downgrade that's provoking a few giggles the most recent for the downgrade is that starbucks is oversatura oversaturated. there are now michael 3.6 total locations wan mile up from 3.2 five years ago dropped it's price target eight bucks to $56 >> for years i've been searching for an analyst report i heard about from the 70s on mcdonald's downgrade, and i don't know for sure if it exists, but it was told to me by somebody who should know, the country was running out of intersections in the '70s, therefore, mcdonald's -- maybe that's an exaggeration, but, i do think there's something else here with starbucks, yes, it's -- they're dent's on the ground in this country, but half are outside

the united states or they don't suffer from this they are going to be that much more important for the stock hard to drive, except with innovation and getting the operations together. >> send us that report so good. and finally, i know hertz is rocketing. they've had to cancel reservations for renting cars in the portland area to see the eclipse on august 21 august 21, they're cancelling the reservations because they couldn't get enough cars to deliver them all >> i guess they must run relatively tight and lean in terms of allocating those vehicles it's expensive to move them to rent a car, but i think the good thing is as a car rental company, they have so much customer goodwill in the bank. well, everyone just loves those guys, so they could probably weather this one. >> there is their statement on the cancellations. and i like the eclipse stamps, but that's a whole other story it's time for an update with sue herrara. >> hello kelly, here's what's

happening. researchers at boston medical center say one in 12 physicians including one in five family doctors received payments for opioids. in the majority of cases, doctors were treated to meals and the average payment amounted to only about $15 a year, but the numbers do add up totaling more than $46 million between 2013 and 2015. delta flight in atlanta was forced to abort it's takeoff due to a flat tire the tire deflated while it was moving on the runway passengers were taken off and the plane and maintenance crews fixed the tire comfy cow is recalling some of it's most popular flavors due to possible e. coli contamination. the recall involves pints of ice cream sold between june 13th and july 21st. in retail stores in kentucky, missouri, indiana, and tennessee. and frito-lay is getting in on the restaurant week by opening up a pop-up eatery with

a full menu of cheetos theme, it opens in lower manhattan for just three days next week. it's already completely booked for it's brief run i looked up the menu, the celebrity ann barelle, she has the white spiky hair she is the chef. some of the entrees including crusted fried pickles. >> i would eat that. >> nachos. i don't to want know >> yep. >> and a goat cheese cheese take with a crust >> okay. we'll skip that one, but otherwise sign me up, and i hope the oreo is next sue herrara doing her due diligence. news alert on tesla, phil, what is happening there? >> kelly, now that the model three is into production and twhiel remains the focus for most investors a lot of people are saying what's next for tesla? it is the introduction of an electric semitruck and along those line, california

department of motor vehicles meeting today with tesla officials, dmv telling us that the meeting was requested to introduce new stand if tesla and talk about the efforts with autonomous trucks. the dmv says that it is not aware of the level autonomy in the trucks that tesla is working on, but guys, this speaks to what many people expect to be the grand planned from tesla developing autonomous drive electric semitrucks. so that you might have platooning capabilities and again, that's the speculation, but again, the dmv says it is meeting with tesla to discuss electric trucks, back to you >> yeah. all while the autolitigation still going on there, phil, thank you. meantime the firing of james moore, that author of the so-called google manifesto has the issue of what you can and can't say and not just in silicon valley coming up, a debate on whether google went too fainis fing ri r h

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this morning, president trump tweeted from his personal account, quote, my first order as president was to renovate and modernize our nuclear arsenal.

it's stronger and more powerful than ever before hopefully we will never have to use this power, there will never be a time that we are not the most powerful nation in the world. those tweets coming on the heels of his fire and fury quote directed at north korea which continues to ratchet up it's anti-u.s. nuclear rhetoric and maybe capabilities for more, lisa collins and john park from harvard kennedy school welcome to you both. lisa, we're here so people can understand the true threat the u.s. is facing how would you describe it? >> i think that north korea's continuing to develop it's nuclear weapons program and we can see that through it's missile testing, it's been doing this for the last several years. it's very focussed on it's objective and goal of creating or making a nuclear intercontinental ballistic missile. i think they're definitely on this path. >> and john, given that they've displayed the capabilities of missile launches at greater

range, is there any reason to doubt they are capable of obtaining the weapon >> it's the technical community is that north korea does have the capability look at the two tests, the ballistic missile test in july already you're looking at situation where the altitude and the distance based on those two things, those two tests verify for the technical community that these kind of missiles can range the continental united states. >> lisa, what do you think the likelihood, based on what we've heard and seen from the north koreans of a strike on guam. >> so i think it's very unlikely the north koreans are aware that any sort of military action against the u.s. or any of the u.s. allies in the region would bring about an immediate and overwhelming response from the united states. as well as south korea sop i think that north korea's very aware that thesrking a vero maintain deterrence in the region and also is working very

hard with china, russia, the south koreans, and japanese on diplomacy to get north korea to come back to negotiations eventually >> john, if that's the case, you know, who's to say north korea hasn't backed itself into a corner here and how is this regime expected to save face and get out? >> well, right now the bizarre thing is all of these statements are happening in the twitters sphere, they are happening in a way that the representative governments and the coordination among other allied or friendly governments, we're not seeing that and that's disserving. right now we're bracing for u.s., south korean exercise that are happening in two week's time there if there's another flair-up, there's always concern about a miscalculation and miscommunication >> absolutely. and the cost of that for north korea too, you know, optimists will say, that's the issue, pessimists might say an overresponse lisa and john park appreciate you describing what's happening there for us today meantime the employee behind the controversial memo

criticizing google's approach to diversity has been fired up next, we will talk to a writer who says he's not firing goog federal his life. no more searches, gmail, or google ms r m.apfohi we'll be right back. stay with me, mr. parker. when a critical patient is far from the hospital, the hospital must come to the patient. stay with me, mr. parker. the at&t network is helping first responders connect with medical teams in near real time... stay with me, mr. parker. ...saving time when it matters most. stay with me, mrs. parker. that's the power of and.

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first interview on freedom domain radio's youtube channel it's been described as an alt-right channel. listen >> me seeing some of the problems in our culture at google where a lot of people that weren't in this group think just felt totally isolated and alienated. and so i -- and there were many people that came to me and just said yeah, i'm thinking of leaving google because this is getting so bad and so, i really thought it was a problem that google itself had to fix and hopefully they do. >> joining us now are brett aarons from market watch who says he's firing google for firing the google employee and she advises companies on diversity solutions. why your response, brett >> disappointed with google. as far as i can see, they have effectively have fired somebody for dissenting from the group

consensus while using facts and logic to make his position look, i understand the old issues about diversity and silicon valley and all the rest of it. and there is no place in any office for cruelty, bigotry and hatred however, when i read the memo, even if you disagree with every point he made, he made his point in a logical, calm, and rational manner i didn't think there was anything to ascribe malice or hatred to it what i thought was an enormous a. projection, very unfair >> what was your reaction? >> well, i can see where brett is coming from, but i think that this is what makes this such a tricky sort of situation yes, he used a calm and even tone and yes he supported with some research, but the crux that was women were inherently less competent to hold high status positions which is a biassed opinion. i think when we think about why

he was dismissed, not because he was conservative-leaning or because he was antidiversity measures, i think he was dismissed because of those biassed opinions which go against google's code of conduct. >> brett, we've been reminded the last couple of days that you're allowed to have freedom of speech and, you know, the public sphere, but when you work for a private company, you know, you've got to kind doff what they want -- if that's what they say is important to them, here's our culture. culture's so important this is our culture, and you can comply or you can get out, right? >> first of all, i don't think that's what he said in the memo. he said why have we dismissed absolutely the possibility that there are innate differences we have dismissed that from the thinking and that's a very important point. in terms of freedom of speech, people saying oh look, it's a first amendment, it's not a first amendment issue, this is nothing to do with the first amendment. it is about the fact that i do

think we as americans, as people, need to honor differences of opinion we need to be very wary of the teernty of the majority, particularly like google that controls our information flow. for these guys, basically sayins acceptable, this is not, is really quite dangerous >> here's their statement about diversity, just reiterating their belief about diversion and inclusion are critical and by way, this hits so close to home for them because they don't have a diverse staff in the first place. >> exactly therefore, because that was highlighted in years past, it's been made a corporate priority i think i wonder about your thoughts on this you say of course that this was determined to have violated google's code of conduct seems clear to do that, but how do you respond to the idea that we enthe terre entered the week with this being a fire storm, and google disavowed it, but did not

dismiss the employee and then people suggested a people legal liability down the road if they were sued on certain grounds, so how does a company finissee those things >> i think they did make the right call i think you have to dismiss the employee in this situation, but to brett's point, there should be space for open discourse, feedback on corporate programs, to make sure people feel heard i think where they starts to make people feel not valued or like their contributions will be evaluated differently. that's where we run into problems google has to take a hard look at its diversity and inclusion programs particularly its messaging because to be clear, their missions don't just cover areas of o gender or race. they're also targeted at bets. older workers. people from a nontraditional education background and those people can cross the

id idealogical spectrum there's a couple of ideal speculations here, other than this just person expressed a conservative viewpoint and now, there's this huge backlash >> it's been suggested that if a taed on the point the if this company had not allowed a diverse opinion, a liberal stance and the fact they're trying to promote employees to fill a quota, that would be one thing, but that by then, getting into the whole thing about females, that kind of took it somewhere it distracted from a point it could have stood on its own and maybe would have resulted in the same kind of dismissal. >> i haven't worked at google. obviously, the guy has lost his job, but you know, at this point, you have to ask yourself do you think people at google who have nonconventional or dissenting views are now more likely or less likely to speak up than they were a week ago i think the answer is obvious. >> and we just mentioned, the

company spends $25 million on diversity since 2014 and they don't have lot to show for it >> this is why i say they need the to revisit their practices they're a couple of se dductive diversity solutions. the author has a good point about reevaluating the role of bias trading the literature is very conflicted on. that does not promote an increase in diversity in the workplace. i think there are better targeted initiatives that google can engage in and this is an opportunity for reevaluation >> all right, we have to go. brett, good luck not using google maps in your future they've gone far, but that's really -- yeah >> had great fun smashing my android phone with a hammer yesterday. >> apple was delighted to hear a it >> thank you both for joining us >> thank you ahead. both ralph lauren and michael

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up u next, find out if macy's enis ulbearngcod the latest sign of a retail rebound u. we'll be right back.

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welcome back macy's does report its families before the bell tomorrow courtney reagan has a preview. >> second quarter earnings to be 46 cents that would be a drop of 15 and 6% forward guidance is paramount with back to school and the hol days both afirst for gwinnett has ceo. expecking revenue to fall when we get that forecast at macy's june investor today, the cfo said margins would fall below its initial forecast

that sent the stock lower. shares though down 20% in the three months investors want to hear more about a new loyalty program that's to come this year and the plan to simplify pricing what the ceo has to do mental gymnastics >> and the vitamin shop sells -- on top and that's the retail renaissance action thank you very much. time for "fast money." "fast money" starts right now. live from the north ameriasdaq t overlooking times square, i'm melissa lee. your traders are pete, karen, dan and guy. tonight on fast, is fire and fury your best opportunity to buy the dip in the market? a top technician says yes and he'll give you the sector he says the on sale plus, speaking of being on fire, bit coin searching the record highs and you won't believe how high mr. tom lee says how high it could go and netflix shares taking it on