they think they have untapped opportunities they can explore. they have high opportunities. [closing bell ringing] liz: don't forget yahoo!. we want to flag our viewers investors that yahoo! and csx. yahoo! up a quarter of a percent. david: the dow jones industrials managed to squeak above the a little bit. s&p and nasdaq can't manage to pull ahead although things might change. looks unlikely. certainly unlike, impossible for the russell 2000 small and mid-sized caps taking it on the chin. remember the financials. big earnings coming up in this hour. "after the bell" starts right now. liz: it was janet yellen's moment. we break down today's market action. much it driven by what the fed chair had to say. before members of the senate banking committee.

there is jason rotman. he will tell investors why now is the time to buy companies that are worth holding for the long term. joe bell, schaefer investments research senior equity analysts. joe has three ways for you to play what we believe at least is some level, that will be a choppy summer market. larry shover, joining us from the cme. larry, in the last hour, teddy weisberg on floor of new york stock exchange said you know what? janet yellen, the fed chair need to stick to monetary policy, not commenting on whether certain stocks look poppy or at least bubblicious. with do you think about what she said, quote, stretch valuations with companies like biotech and social media? >> yeah. it is the first time a fed chairman came out in 14 years and started a triple mandate. no longer is it growth and employment. it is now giving advice on sectors in the market. don't get me wrong. i absolutely love janet yellen. however, i'm not sure it is the place of the fed to start talking about bubbles again like

happened back in 2000. as we know, these bubbles can last a lot longer that most of us can stay solvent. david: jason it, wasn't only janet yellen. we had retail numbers came out this morning. they missed expectations. slowest pace in five months. yet you think they look good. why? >> they're positive. anything on the positive side indicates some type of growth. the estimates are one thing. the fact i think they were plus 2%. the new york empire manufacturing number was at multiyear highs. so i think you have an economy that is not on its last legs. it is still strong economy. who says what janet yellen's comments are about the stock market are illegal? she is her own person. she can say that and not have it be out of bound. david: nobody said they were illegal. obviously they're not illegal but whether they're proper or not for a fed president. >> it breaks precedent but at the same time they're calling it her greenspan irrational

exuberance moment. it doesn't necessarily break precedent. she heads largest federal reserve in the world. she can make observations. liz: hold on one second. we have intel numbers, jason. hold that thought. chairman cheryl casone how did they do. >> liz and david, 13.69 billion was revenue estimate. came in 13.8 billion on revenue. earnings per share, came in at 55 cents earnings per share. the estimate 52 cents. nice, nice outlook as far as third quarter revenue guidance goes. coming in very, very strong. bid and ask look like stock is doing very well after the hours. up 1% on results for intel. looks like they will get a share repurchase program. intel saying board of directors authorizing increase of $20 billion to the share repurchase program. that is always a good sign seeing a company doing that. numbers coming in fast and

furious on intel. a strong beat on earnings per share. a strong beat on revenue. stock is moving higher. as i'm looking a my screen. both can see the stock on your screens as well. david: minute you mentioned that stock, minute you mentioned that stock repurchase we saw it go up another tick. clearly above that $32 mark. it is a strong sign for the stock price. not necessarily for the company. but when you add it all together, liz, this is a really good report. liz: intel has been pretty active when it comes to share repurchases. 20 billion is no small chunk of change. we caution viewer investors you have to follow up and watch to see if the company actually does go through with this. intel tend to. but that 55 cents per share, that was the whisper number. intel has history of beating or matching the whisper number. in fact, 59% of the time, they have done that. but this is different this time because, the company really seems, indeed to be a part of this right now, where they have found their footing when it comes to mobile.

we're going to be speaking with stacy smith, chief financial officer coming up in just a few minutes. we'll drill down on things like wearable, cheryl. david: let's go to larry shover for details. you've been looking particularly at pc market. obviously it is beaten down past couple years. intel shows there are certainly signs of life there. >> absolutely. the pc, the whole lifeline has been resilient for intel. you know they still spilled the beans back on june 12th. that helped the stock price all along. beyond that operational efficiency has been great in the past five years. intel a strong company. redoing from one to four, to six last five years. operational efficiency off the map. what we have to worry about is slowing momentum in server strength that. is a real risk people have to worry about. liz: they have 90% market share when it comes to chips and servers. >> it is important. i love the stock. it is just that the overall economy, we have a slowdown or reversal in server momentum,

slowdown in pc demand, all these kind of things f margins are reduced because we have manufacturing costs go up. these are things we have to be concerned with. every investor needs to look at both sides of the fence. liz: we're waiting for numbers on pc. what is more important not this quarter but how stacy smith and brian krysnich the ceo see sales. we're seeing a bottom and companies are buying pcs. we need to know about the tablet business, mobile business, washable business. last quarter was first quarter quarter intel broke out revenue for wearabilities. david: hold on a second. yahoo! earnings are coming out now. what are the numbers, share? >> this is interesting turn of events for yahoo!. the stock is trending down on numbers coming out of yahoo!. a couple of things i want to look at first and foremost on earnings per share they missed by a pen my. coming in 37 cents. the estimate for 38 cents. this is second quarter. revenue excluding tac they

missed on revenue as well. a slight miss. so the revenue was 1.08 billion and they missed. they came in at 1.04 billion. again the stock is trading to downside right now. it began to actually really take a hit when that revenue number came out. also the company saying display is in area of investment and transition. alibaba, this is coming out about alibaba. we're committed to return at least half of alibaba after the-tax ipo proceeds to shareholders. this is a big question mark for analysts going into yahoo!. what are they growing to do, what is she going to do, marisa mayer, the ceo, she will make off the alibaba ipo? looks like a lot of that will come back into the company and going back to shareholders. if you're holding shares of yahoo! right now. the stock is moving to the downside. they missed on both earnings and revenue. david: the bid now is up a little bit. it is coming to the upside. i'm curious, joe bell, what you

think, what the market really thinks of marisa mayer, the job she is doing? half of that -- by the way, their stake in alibaba comes to $10 billion. half going back in to buy the stock. what do you think of that idea? >> it is an interesting idea. that is definitely what investors have been sort of waiting for, the yahoo! story. the marisa mayer story is linked to alibaba past several months. if you talk to the market reaction and market interpretation of that is, the price is grinded sideways for the past several months. one interesting thing ahead of earnings. we've seen four times as many bullish bets from options traders. there is a lot of relatively high expectations going into this report. it would have taken a very good report and good news from this company to beat those expectations. we'll see how it reacts overnight but -- david: reacting up a percent after hours, liz. liz: some of that has to do, jays son, because she says she will return half proceeds from alibaba ipo which they own 23%

back to the shareholders. you might expect a slightly better pop than that. i'm just wondering what happened here? well, you know i think this is kind of a good segue unintentionally to one of my three stock picks which is google. when i think of google versus yahoo!, this is the truth, i think of yahoo! with a homepage with a million different pictures when i look at google i think of genius revolutionary company with truly diversified business model getting more diversified. if i had to pick one i would clearly choose google for the long haul. i'm not saying yahoo! is going out of business but yahoo! needs to be more diversified and forward thinking than content and ads. david: display ads are down. they have seen decline in growth thereof. they're making nolt of that. i want to go back to jason though. excuse me, let me talk to joe about one ever your picks, tesla. we talked earlier about janet yellen and whether it was proper for her to comment on certain

stocks that were overpriced. she focused on stocks specifically like tesla. she didn't mention it by name. but she warned against stretched stocks, high beta stocks like tesla. did it concern you at all she seemed to be browbeating that stock or stocks like it? >> i mean it concerned me the fact that the feds would make comments on individual stocks and sectors. i guess she didn't give her bullish picks but only her bearish picks. we'll have to wait on those. test last, the 220 level i like it. it pulled back past couple months. a lot of short sellers targeting that name. obviously it's a high beta name. in general a lot of automakers have skepticism for them. i like technical entry, risk/reward i like here. liz: joe, jason, good to have you. it has been a rock and roll past ten minutes. larry we appreciate you as well. david: guys, thanks a lot. major banks have seen strength so far this earnings season. it could be a very good sign for

the state of regional banks as well. a top analyst, telling you four names you should buy in the regional sector right now for the second half year. liz: intel shares rallying. you can see on your screen. closing value is 31.71. the bid is $32.08. better-than-expected results on both top and bottom line. in fact hitting whisper number. announcing a big stock buyback. what matters really to intel? computing machines, servers, laptops, ultrabooks, pcs and tablets. has the momentum carried through to this quarter? we'll talk to intel's chief financial officer statessy smith live. david: they're giving phrase, sign on the dotted line a 20th century makeover. we'll talk to a ceo whose company is helping businesses reduce transaction times and increase security. it is growing so fast, 40,000 people use this new product every day. what is it?

we'll tell you coming up. liz: we want to hear from you. words from fed chair janet yellen did speak the markets. everything was up and most of it closed down. has the market become too dependent on every word coming out of the fed? tweet us @fbnatb. your answers coming up. [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ so the magic shell went back to being a...shell. get live squawks right in your trading platform

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david: so we had intel. we had yahoo! and the third of

triumvirate, csx, reporting moments ago. liz: let's go back to nicole on the floor of new york stock exchange with those numbers. >> let's break down what we're seeing for csx in after-hours. earnings per share coming in beating by a penny, 33 cents, versus estimates of 332 cents. 52 cents. revenue came in at 3.42 billion. slighting underperforming the estimate of 2.25 billion. right now the stock, bid ask, is slightly lower than where it closed at 31.15. the big picture when i went through csx, railroad realm what we're talking about, a lot of headlines there were record second quarter results. they reaffirmed their guidance. also they boosted their capital investment by $100 million to 2.4 billion. they still see modest earnings growth. there is a call tomorrow morning at 8. we'll be listening to that to see if there is anything on

that -- 8:30. they remain confident of sustained double-digit earnings. just so you know, liz and david, 64% of analysts have a hold rating. last year the stock was up 445%. so it was a great move. this year it up 8%. back to you. david: thank you, nicole. >> if anyone wanted to know where outgoing ford ceo alan mulally is going, he has been named to sit on the board of directors of google. mr. mulally was asked, he has accepted, sitting on board of google. larry page says alan bring as wealth of business and technology experience. i'm so pleased alan is joining google's board. this becomes effective july 9th. google reports numbers on thursday. that is big news. david: it is. we'll see what else he wants. i don't think that will be enough to keep him busy. liz: that is not it. david: no.

liz: several banks want more -- released results jpmorgan and goldman. david: we have kbw executive vice president, global director of research, fred cannon. fred, good to see you. first of all i'm going to ask you an unfair question. if you had to choose between the big banks that did so well today and all of the regional banks, which sector, regional, or big banks, would you choose in the coming months? >> you got to go with regional banks i think at this point. david: why? >> their valuations have come down from very high levels and loan growth. if you look at big banks they did well because they told you they would be down 20% in trading. they were only down 12. that is not something to really get excited about. on other hand you're seeing double-digit loan growth out of regional banks. comerica set the stage this morning for that. over next coming weeks i think you will see great numbers out of regional banks. liz: regionals have been gutsy enough to say, we're confident

to start lending. major banks have not followed suit, are they. >> we're seeing a sign of that. jpmorgan's loan numbers were pretty good. citi's loan numbers were pretty good. at end of the day the smaller guys have a lot more leeway to do what they want to do to push loan growth. i still think till will be concentrated in smaller banks. david: we talked about big banks. jpmorgan, i know you like it. small banks. what about mid-sized banks? i know suntrust is one you particularly like here. why? >> well we think suntrust is in the right spot. if you look at around the country, right, what areas already seen a lot of growth and high valuations? that would be the west coast. you're seeing it in texas. the southeast lagged a little bit. we think suntrust is well-positioned. mortgage numbers came in a little better than expected. if suntrust can get a little better expense control, that stock will work. liz: you're bullish on this name. what about pac west do you like right now? >> they have unique merger

coming together and we think it will come together much better than the seat expects. they bought cse. they're coming together. as that merger comes together you will see good growth especially in the environment where you see commercial growth going up. they're well-positioned. david: we talked about the west coast, but let's not forget about the east coast. east signature bank on the east coast. why do you like it? >> you want in a bank? , you want loan growth. the banks ones with biggest balance sheets will benefit. david: let me stop you. what if banks are hocking in loans right now at lower interest and rates go up? >> most of these, we look for banks with a lot of variable interest rate loans. ones that will turn over. david: ah. >> if you look at another one out in the west coast, silicon valley bank, all variable rate. fabulous loan growth. rates go up and those earnings can just explode. liz: is there a compelling argument on whether somebody should just go with only regional names or just the big

money center banks? >> well in that case, from a structural standpoint you have to go with regional banks. at the end. day the big banks are not, the growth engine that they were historically. liz: exactly, fred. i hate to interrupt you but goldman has been really bellyaching about lack of volatility, oh, our trading floors can't make a lot of money. charlie gasparino reported last hour, fixed income traders are concerned there will be layoffs. with smaller names seems like there are not as many litigation fees they have to worry about, less overhang and worry. >> exactly. you're saying the mortgage stuff is behind citi what about for recollection, and libor? -- forex. nonbanks are picking up you have a full lot of business from the big guys. david: fred we have to go, at end of the year, 10-year rate what do you think it will be? >> 2.80. how's that? david: that is a number. thank you, fred. >> great to be on. david: great to see you my friend. liz: terrific. david: when visa the number one

payments company makes an investment in a fast-growing tech company investors should pay attention. we'll talk to the ceo of that company, electronic signature firm called dock you sign. millions of people use it. even if they don't even know it. a fox business exclusive coming right up. liz: intel flying high after beating the street with its earnings report that just came out along with its revenue outlook. the chip-making giant's chief financial sister, stacy smith takes us inside of the results. more importantly how the current quarter looks and rest of the world. david: look out, folks, facebook is watching you. the social networking company wants to track online tv viewing habits. anything you rather not know about? we'll tell you how it will do it and what they can get from your information coming right up.

in new york state, we're changing the way we do business, with startup ny. we've created tax free zones throughout the state. and startup ny companies will be investing hundreds of millions of dollars in jobs and infrastructure. thanks to startup ny, businesses can operate tax free for 10 years. no property tax. no business tax. and no sales tax. which means more growth for your business, and more jobs. it's not just business as usual. see how new york can help your business grow, at startup.ny.gov there was like an i haderuption on my skingles. and burning. i'd lift my arm and the pain back here was excruciating. when i went to the doctor his first question was "did you have chickenpox?" i thought it was something that, you know, old people got.

liz: time for a quick speed read of some of the day's other headlines. fire stories one minute. first up, novartis and google have joined forces, fascinating, smart contact lenses. the new eye war will monitor blood sugar levels for die bets i cans and do couple other things. the nba is seeking to double tv rights fees it receives from disney and time warner. disney is paying 485 million a year. turner is handing over 445 million a year. alibaba teaming up with lions gate entertainment to launch a subscription service in china. that will be lyon's entertainment world and specific to the alibaba set-top boxes. facebook will scan databases and send age and ginder viewers

to nielsen to help advertisers learn more about who is watching shows online. whatsapp competitor lime values for ipo, valued at $9.8 billion. the smartphone messaging app set up after japan's 2011 tsunami disaster wants to list on new york stock exchange. that is speed read. david: one company giving a whole new meaning the to phrase sign on the dodd line. you may not know its name, employees at 90% of the world's biggest companies used its products in 40,000 new users join its network every day. liz: let's find out more about this one. jo ling kent has it. fortune brainstorm conference in aspen, colorado, with an exclusive. jo? >> hey liz, hey dave. we have exclusive interview with the ceo of docusign. thanks for joining us. >> thanks so much for having me. >> amazing to be here. it is beautiful. you're on the deal trail here. you signed a deal with fedex that is going to change the way that people send documents.

what is happening here? >> what is so great about the fedex relationship, allows docusign to get exposure to all of fed expect customers and allows us to be able to print out documents at fedex office stores and myriad of other things. >> all digital. you start digital what happens? >> it is all digital. like rob carter, their cio, he goes, what we believe at fedex, anything that can be automated will be automated. anything that can be digital will go digital. to put two great brand together like that we believe one plus one equals three. >> a huge deal. another piece of news that broke this week, visa is investing in docusign. >> yeah. >> why are they doing that? >> there is great synergy between the two companies. to give a quote from ryan mcinerney their 38-year-old president at visa, he goes, what we have done in the payment world you have done in the document and transaction world.

our competition, our enemy is cash. your enemy is paper. >> so that the goal here, keith, you want to eliminate paper globally? >> that is our mission. >> what is the timeline? >> we used to say that by the end of the decade the vast majority of signatures will be electronic. we don't even say that anymore. it is inevitable. what we believe is that all successful organizations by end of the decade will be completely digital. >> we're talking everything from the fortune 100 down to startups you're talking to here in aspen? >> absolutely. >> i have to ask you, you've seen silicon valley up and down through the '90s, the bust. you were successful of a ceo of a company that went up and down. what do you make of the vast amount of money swirling around here in aspen and silicon valley? >> yes. >> are we in a bubble. >> i don't think we're in a bubble. the important thing when we're building companies and beautiful thing about silicon valley you build companies to last. for example, ariba, when we

built that in the early '90s, yes there were ups and downs, to this day over half a trillion dollars worth of commerce go through the ariba network on an annual basis. four million suppliers on that network. that was built to last of the same thing is going on with docusign in terms of being a global standard in digital transaction management. we're investing heavily. we see this category of digital transaction management as perhaps one of the largest opportunities to come around in a long, long time. >> so, shortly you just say, not a bubble. things are growing fast across all sectors would you say? >> you know some are a little up and down. a lot of the companies have been affected affected affected in the short term. that happens. wait i look at it, i'm not a financial analyst. i'm just a businessman of the we focus on the customers and let the market take care of itself. >> keith kracmh ceo of docusign.

valuable insight you get only on fox business and here in aspen. david: thank you, jo. keep on it. >> intel rocked it. beating estimates on both top and bottom line. david: look at the price. liz: it is really jumping now. i'm not sure the share buyback is as important as the growth in the pc unit. finally seeing a rebound after several quarters of declines. is the pc back? how is intel doing with other trend like tablets, wearable, internet of everything? we go inside of the company's earnings report and near future with the chipmaker's chief financial officer stacy smith, live. david: you saw what financials were doing today. big jump in bank stocks. nice for shareholders. doesn't stop a lot of investors ask whether days of traditional banking, one-on-one relationship you had with a banker whether that is thing of the past. we look at changing face of banking straight ahead. ♪

♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. but hurry, offers end july 31st. share your summer moments in your mercedes-benz with us. david: time for a look at today's market drivers, nasdaq ending the day in the red after that reserve chair janet yellin at rest concern in some corners of the market. healthcare and consumer staples lead today's the

client. oil falling below a hundred dollars a barrel . a supply disruption concerns eased with libyan output gains. crude ending the day trading down nearly 1% at $99..96 per barrel. retail sales increased late last month coming .2%. the report by the commerce department shows sales were held back by a sharp drop in building and garden supply stores and 80 client restaurants and auto dealers. liz: david, shares of intel extending their gains moment by moment after hours, up more than 3% on a strong second-quarter earnings report. intel showing a beat on both earnings per share and revenue, we will get into what is driving at. the chip giant trading out at 10 year highs and riding the wave of enterprise pc demands. pg-- pc demand from businesses. dreaming now stacy smith intel chief financial officer. welcome. great numbers anyway you slice it and i guess the top

headline for me as the pc death has been greatly exaggerated to quote mark twain. >> i think what you are seen as a combination of things coming together that are consistent with the strategy we have sent out. we are seeing growth in the pc segment and we are seeing nice growth into and ones and we are hitting new price points in that segment and we are read many the pc and growing share and tablets and we have other devices like things that are growing nicely. on the other side we have the data set a group, from these devices. as well as the buildout of the cloud and when you put that together we had a good solid quarter, 6% revenue growth. liz: it sounds very nice on many different levels. i want to drill down on the pc sales. when we talk about enterprise that the big businesses finally stepping up and buying more pcs, but the client group, which is up 6% euro per year what about the people on the

street buying personal computers versus tablets of mobile devices? do you see that pick up as well? >> i think we are clearly seen some shift of it share moving back to the pc. it comes down to we are enabling these really great devices, thin and light and long battery life at lower price points and so i think we see a bit of share shift. i also would be careful of not getting too far out ahead of our own skis here. the strength we see right now is primarily in enterprise segment and more mature market driven. we still the consumer segment of the market being relatively soft and emerging markets being weak compared to the mature market. liz: so, the consumer market relatively soft, but lets talk with the gains in 15 this around. is it continuing here or is a one up? do you see that continuation in the current quarter and press the rest of the second half? >> we have forecasted a roughly seasonal second half.

that will take us to a model where we have 5% revenue growth on the air, a quarter ago we were thinking that was more like zero, so we see it continuing through the year. our cost structure looks a great, so as we go into the third quarter our production is we will see something on the order of 66% gross margin, will which is a bit above our range that we tend to see. liz: intel has made a herculean effort to catch up in mobile. it appears you are starting to see some reaction there. i want to talk first about tablets and i was asked about this and i asked brian, ceo's well that you made a bold prediction, 40 million tablets this year by the end of 2014 will have intel chips inside them. are you on track to hit that go? >> if anything what we saw in the first half were eight bit of head of the internal plans we had, but i have technology that the tablet is primarily consumer device , so we should see a lot of

those machines selling through the back half of the year. but, everything we have seen from the customers we are selling to the design met we won just gives us confidence we are on track. liz: i know you don't like to talk about design wins that are going forward, but i'm looking at names on our screen, acer, lenovo, which has just gone gangbusters when it comes to everything from laptops to smartphones. are those relationships not only continuing, but growing? >> yeah, absolutely and you just went through the list of several of the tablet announcements that have already been made. there's obviously more out there, but all of those companies are great technology partners with us and we see our job as we give them kind of the best technology to build their tablets on top of and then they can bring these great devices to the marketplace and we are enabling price points and uses a model. liz: glass corner you broke out revenue for wearables for the internet of things

that were up 32% last quarter. can you give us a number for this another spectacular growth in that segment of the business. it was up 24% year after year and it's a big business and i think we are probably one of the largest players in that segment of the market, growing fast and very profitable. liz: is it fair to say that you use wearables of eight-- some are wondering if it's the line-- electronic pet rock's direct back up a bit. there's this broad category of internet of things, which are all these devices coming intelligent that didn't used to be intelligent and we have a big business. i think wearables are one of the interesting verticals that plays in there and one of the things i see the company doing that maybe is different from tablets where we were a bit behind market is we are there and experimenting early and so i don't know which of these devices will end up being the big winner, but we are there and have the confidence we will benefit

as those devices come to market. liz: intel inside and again that continues. congratulations on a nice quarter, stacy. >> thanks. greatly back. >> liz: david come i think one of the headlines is that the strength in enterprise pcs continues, but consumer pcs still a little soft. david: and we will see about those wearables. meanwhile, is the idea of dealing face-to-face with a personal banker to take care of your financial needs going the way of the dinosaurs? wait till you hear how the new wave of online financing is changing the face of the banking industry. could falling to the family home sales in phoenix, arizona, the painting a grim picture for the overall us housing market cracks we break down those numbers for you coming up.

david: today's thinking stock is reassuring, but it should did-- could disguise a monumental shift in banking. from that personal relationship you have the loan officer to an online financing model to read the new ways of thinking may be impersonal compared to the old ways but they are far more efficient and profitable and only those who can adapt will survive. dreaming out is daniel and he has a looking deeply into the changing face of banking. daniel, first of all describe the new model of a banking as opposed to the old model. >> great to be with you today and it's interesting on the last segment you are talking about the internet

things and today we get to talk a bit about the internet of finance. really since the financial crisis we have seen people large scale lack of satisfaction and lack of personal engagement with traditional financial institutions in the way people secure loans or make investors. that is especially the case with my millennial's. the generation ages 18 to 34 whose financial needs go overlooked or unmet and a lot of innovative companies today are seen that opportunity and using the internet to creatively correct a certain elements of social networking, dale and licks and finance in order to create new financial services platforms that focuses on a new form of personal engagement with customers. david: how personal is it if you are not dealing directly with an old-fashioned banker who gets to know you and form a judgment-- i mean, bottom line here is an outgoing them, an online

poker rhythm, which decides what we like and what we don't like and how unreliable or reliable we are can an algorithm really replace personal judgment of a banker? >> that's a good question. i think what these platforms are doing art taking the best elements of old notions of community banking and finance, but doing so any efficient and nationally scaled way and they do this in two different ways. one for the data analytics you're talking about. traditional banks today rely singly on scores and that the way they try to assess your individual's credit risk, but there's a wealth of data out there about small businesses and individuals and if you look at it creatively and use the out rhythms your mentioning, you can learn more on it individualized level about a person or small business and in this way it's actually better for the borrower than the traditional system. the flip side is we are enabling new forms of community investment, sapir

to peer lending models allow individuals to going to the internet and invest in peers-- liz: we have talked about that before that the traditional new way of finance and that's a good way to do it, but again you are missing out on the personal relationship with a banker. isn't there anything that you think will be missed as a result of that? >> i think what you'll see is it traditional financial institutions look for ways to use digital and use mobile to facilitate personal connection. for example, this past weekend the wall street journal noted many of the larger banks are creating mobile apps that allow videoconference with your financial advisor, so in this way it's almost an on demand be able to how the human interaction that you're referring to, but you could also take different platforms and by learning about the borrower and the customer you can start to target specific communications to them. maybe someone is looking for a specific type of financial advice based on the

lifecycle of their business or the stage in their life. david: daniel, this is going to be the last question, but not everyone will make it in this transition. which banks-- in the old times used to be the bigger institutions that were the least flexible that could adapt the least. which institutions now will be able to make this transition and which won't? >> as you say it's hard to move a large ship, so what i thank you will see the bigger bags to is look for the more nimble startup companies, technology company's that are attracting key talent and i think some of the bangs will try to incorporate some of that into the interface or the user experience of their customers, but i'm not sure there won't be some up starts that are able to come in here and with a fresh look and figure out a new way to really connect with consumers and offer products that are quite competitive with traditional makes as well. david: adapt or disappear. it's that simple.

daniel, great to see you again. thank you. >> thank you. liz: it was ground zero for the housing crisis and now there are new signs of stress in phoenix, arizona real estate market. we find out whether it's the preverbal canary in the goldmine or the national housing market. and the few, the proud, the marines. new four-legged recruit from none other than google. we will bring you details of this potential game changer on the battlefield. stay tuned. ♪

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david: you have heard this before, the next, arizona housing market in a slump to read again demand for single-family housing under 50-- $150,000 has a fallen nearly 40%. liz: what does that really mean for the national residential market cracks box of businesses cheryl, our real estate execute the details. reporter: we really can learn a lot about this report. this is one of the closely watched real estate reports in the country. it's from that carey school

of business. why does it matter? because phoenix was ground zero for the housing crisis. that's where it began and it usually that is the city that will fall the highest and if all the first. phoenix has recovered. here's the problem with the number's, though. we got these number's in. look at this, homes under $150,000, siegel family homes those sales down 37% year-over-year. why is that so disconcerting? because phoenix and many cds, las vegas think about a lot of places in california, the valley for instance, those cities saw a lot of investment dollars coming in from canadians and new yorkers, money from colorado floating into the cities and now what we see is investors are not buying into a city like phoenix and that is a signal for the national housing market. the stress supply was up 25%, but real estate xers i have talked to state if

you're not seen prices begin to come down that is the sign of again bubble territory. maybe sellers are not being optimistic about the prices they are offering their homes for sale. there's a bottom wrong of homes in phoenix and that is 150,000 and then over 500,000-dollar home and that is a city like phoenix, arizona. we are also seen an amount of flat sales and that in even the median section in phoenix is problematic. don't want to jump the gun yet, but a report like this in real estate circles is worry some for the national housing market. did we get our prices up too high too fast? will they come back down? we will see. this will affect of course the builders. david: worth keeping an eye on. thank you. liz: google could be making its way onto the vast field. we will tell you much more

about that when we go off the desk. david: what if you could make a favorite childhood toy at larger-than-life. benjamin moore did just that and we will tell you which toy and how big coming up next. and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours.

shinglesthe blisters tremendously as a pilot. and the pain in my scalp area and down the back of my neck was intense. it would have been virtually impossible in that confined space with the rash to move to change radio frequencies. i would just stop and literally freeze up. i mean it hurt. i couldn't even get up and drive let alone teach somebody and be responsible in an airplane. when my doctor told me that shingles came from the chickenpox virus i was very surprised. for two weeks i sat up in bed because i couldn't lay down. i had the scabs all throughout the side of my head and into the upper neck region. i didn't want to do anything except go to sleep and have the pain be over. as a pilot that meant i was grounded.

>> it's time to go of off the d, talking about turning one man's trash to their's treasury ire, benjamin moore, using reclaimed wood to build largest yo-yo. it works. there is. >> a google owned robot, is being tested in first live military trial with marines in hawaii, it can carry up to 400 pounds of weaponry over rugged terrain, operators control cujo with a hand-held device. >> we asked you to facebook whether you thought that market depended too much on the fed, lisa said yes.

>> and todd, said, we only trade fed at-this-point not else matters, the low volatility, and dr. yellen is always there. >> willis report is next, a growing trend of expensive and bizarre food. gerri: tomorrow's favorite foods tonight like avocado ice cream and salmon jerky. also, a consumer's phone call with his cable provider that turned into a nightmare, we will play the tape. and some of the most difficult decisions any family can make, why decisions about carrying for the -- caring for the elderly are becoming more conflex and dangers of falling asleep behind the wheel, the willis report, starts right now. gerri: breaking news