[closing bell ringing] concerns about israel and gaza. there may be temporary cease-fire for six hours. we started to come back off the lows. david: as we close, we're seeing pretty far to the bottom side of this market here, 165 points on the dow. significantly below that 17,000 level, a lot of people said would be the base for new highs for the market, and it was for a couple of days. taking events like today. may not be a black swan. may be a temporary thing. we'll wait and see but for the moments the markets really taking it hard on the chin. we have a pyramid scheme going up on top. believe it or not the least affected of all indices, the dru jones industrials, that 161 is less than a full percentage point off the high. nasdaq taking it hard and hardest hit of all indices, small and mid-sized caps, russell 2000. we have breaking developments,

including latest from the ukraine. "after the bell" starts right now. liz: direct your attention to the s&p. it's been a while, since april 10th it has fallen more than a percent. let's break down today's action. with number one risks to this bull market. hank smith, haverford chief investment officer, telling us why stocks are still the best investment right now. adam shapiro standing by live in the newsroom, ready to break in with any breaking news on the situation in eastern ukraine with the plane crash but also with google and ibm earnings. we begin first though, with hank smith. i want to just get right to what you thought about the situation today. a lot of news flow, first out of eastern ukraine, are you surprised what happened with the markets? still just about a percent drop here? >> yeah. i don't think anyone should be surprised. i think it is quite shocking

with all the geopolitical hot spots and events going on past couple months that the market hasn't corrected. i think that is the big surprise. but going forward i think just like the previous pullbacks this year, it is going to be relatively short lived and shallow because there is still a lot of money on the sidelines that would like to participate in this market. they will use pullbacks as on opportunity to get in. david: that may be but dan howe from the cme. he dan, we saw big activity toward the end of the trading day to the downside. as we go to end of futures trading in the pits that we continue to slide down? >> you're seeing quite a bit of selling pressure. we do same thing we normally do. we had bad news about sanctions overnight. we came back, to the plus column. buy the dip mentality was alive and well and activities going on in ukraine. sanctions were hot spot. what happened in ukraine will

cause more sanctions. at very least we need to have a little bit more of a correction. i'm kind of surprised when the news came out about israel this isn't down a little more. these are two hot buttons, ukraine and israel and both were pressed today. liz: excellent point, dan. we're off session lows. that brings me to will. regardless of what appear to be negative crosscurrents, you're still very bullish. why? >> we're bullish on selective areas of the market. just look at the economic data this week in terms of up side surprises for retail sales and manufacturing indices. we think that bodes well for some more cyclical areas of the market. industrials, i.t., materials and energy as well. we're selectively bullish, liz. david: hank, i want to go to you again and ask whether or not you're fully invested even at this point? i know you're bullish on the market but didn't you sell a little bit of something today? >> no, we're still fully invested. david: wow. >> we plan to be. that is how you make money in

the equity markets. david: hold on. do you have any stop orders out there? i'm just looking for some insurance policy for you. >> no. look, this is how you make money. you have to be invested. you can't come in and out of the market. no one is that, no one is that good to do that on consistent basis. so look, these little pullbacks and corrections are part of ongoing bull markets. there is a cost of really taking advantage of the superior returns stocks afford you over time. liz: dan, you're in the pits there. when you have positions like hank and will do, they're still liking at least selective parts of this, we had the vix jumping pretty exponentially at least in grand scheme of last year. up 34%. still below 15 but ending session at 14.77. gold spiked. treasury prices spiking, yields coming down. what is the most significant part all that i put together for you in the pits? what are trade es looking at?

>> certainly percentage wise the vix made a big move but still low level. fear doesn't start coming into the market until you see 18, 19, 20 and we're not there yet. to me the bond yields are creeping down. the bond are a lot more nervous about this than the stock market for quite sometime. today a consistent move but not a big move. talking six, 7 basis points at 10-year but we're at a very low level yield but we're not at fear level. david: will, this comes smack in the middle of earnings season, will it affect earnings season at all the political activity? >> i think it will to some degree, some companies more than others. when you have crisis of wars, market sells off but snaps back. economic landscape still gives fuel to the equity bull market. david: are you fully invested as hank is? >> we're fully invested. david: 100% invested, no cash at all? >> fractional cash ownership.

we have four fund heartland advisors but generally speaking we're fully invested. >> hank, you have a compatriot, when you look at ibm, tjx and target. look at ibm we're about to get numbers from them. they have had revenue stagnation over past couple quarters. what do you expect here? why do you like this name? >> well, first of all it is cheap. it is not just attractively priced, is cheap. if you're looking for something with a below-market. e, ibm has that. also, this is a, this company because of weak past couple years, the comparisons should be easier. if they do beat on consensus, look at this stock going right through the 200 barrier. it is a voracious buyer of their own stock. they have retired 30% of their shares outstanding over the past 10 years. that's net of all option issuance. and i think the announcement with apple is a positive going

forward. david: all right. dan, we also have goo google coming out with earnings. they have been doing something a lot of people like which is spending a lot of their money. all these companies have tremendous cash hoards, the tech companies. they have been spending it on real research and development, bells of dollars. do you think it will pay off for them? >> i think it will but i don't think it will pay off right get yet. they're acquiring future business lines which won't help them right now but their main business is generating tons of cash. how well are they growing revenue. google will probably meet it. the whisper number has been going up gee moat trickly last couple days, $1.20 last couple days. google will impress but whisper number is quite high. liz: ibm numbers are coming out of the as we're having adam shapiro parse them. the stock is moving higher. it closed at $192. it is running 197. hank, i'm sure you're looking at

this seeing exactly what happened. we're not quite ready. we don't want to get the numbers wrong. it appears, for once, ibm has good response in the after-market session with what is happening here, hank? >> i certainly hope so, i don't think it will take much because as you pointed out for the last couple years they have reported quarter after quarter -- liz: left's finds out. adam shapiro has numbers. >> yeah, beat on both lines, liz. earnings per share $4.32. the street expecting $4.29. here is the big one. revenue 12 -- 24.1 billion. street was expecting 23.1 billion. cloud up 50 years -- 50% year-to-date. we'll go through this. get you more. david: that does not sound, dan howe like a sleepy company. sound like a company coming back to life, does it not.

>> it sure does. they have eight quarters of decline being are revenue. they need ad revenue beat. the verbiage is very good. we will talk about upcoming deal with apple. liz: hank, i will give you headlines since you love, since you loved this name. i think adam points out the cloud revenue being up 50%. that is the hot area right now. you can see as microsoft laid off 18,000 people, sort of if you're not on board with the cloud you are out. ibm following this way. they managed to turn themselves from stodgy to real hip when it comes to what matters now. >> might be nice reflection on our economy. look, the economy is strong. you're seeing that with the data points coming out recently. earnings so far have been very good. we're very enthusiastic about this and it is still a very cheap stock. david: will, some people would say that nasdaq is still a very

cheap index despite its run-up today. of course it was hit hard, about 1 1/2% down. is now the time to get into tech? >> we're overweight tech. we like our exposure to more of the semicap space, semicap equipment players. tech is, a group that has historically led, leading into the fed's first rate hike. david: i'm talking about right now. we had a 1 1/2% pullback in one day. might be because of this single event in ukraine. it may pop back. would you be buying tomorrow money if you had the cash? >> i would. i would focus on small cap fed. look at divergence, zap is up north of 8% sore so. russell 2000 is flat or down. big divergence and we see small cap left as well. liz: headline out of hewlett-packard. meg whitman is director of the board, chairman of the board of hewlett-packard. she is already ceo. they're bringing on klaus

kleinfelt, head of alcoa yaw. he will be board member at hewlett-packard. i have no doubt this has to do they are putting a lot more aluminum in consumer products, consolidation of meg at head of the board is very interesting. clearly honing up all of her pow are in very big way. power. adam shapiro, do you have numbers. >> come to me. david: go ahead. >> google, beat on revenue, 12.67 billion. ex acquisition costs, 12.67 billion. mission on earnings per share. non-gaap earnings per share. $6.08. street was expecting 6.24. street was expecting 12.32 billion, david. david: first there was pop to upside. it is flirting with upside. liz there is so much attention whether companies hit on top

line. bottom line, when zero interest rates sometimes easier to hit a bottom line number rather than revenue number. looks like revenue was good for revenue. liz: the bid is $583. closing value is 580. when we throw out terms, extract, traffic acquisition costs, payments made by internet affiliates and online firms attract business to the website, if you see that rise, that becomes a problem. google, majority of traffic acquisition is amounts ultimately paid to the network which totaled 2.4 billion. david: all that accruing to the upside terms looking what might happen tomorrow. will, thank you very much. hank smith, good to see you. very busy day. dan howe, appreciate your help from the cme also. liz? liz: malaysia airlines passenger plane crashed in eastern ukraine, 295 people on board. we still don't know a lot of things. what caused the crash?

was it russian or pro-russian separatists? was it the ukrainian bought. all kinds of fingerpointing. what played a part for this tragedy and what will the u.s. and the rest of the world do in the wake of this horror? what can it do? we're talking with a former u.s. ambassador to the ukraine. david: perfect person to ask those questions of. also markets reacting big to the news today, dropping triple digits, 1 1/2% on the nasdaq but is changing your investments off day-to-day headlines a big mistake for investors? we're breaking down market myths and mistakes that could cost you money. liz: retailer, you know this, we've been talking about, have underperformed the markets so far this year due to consumer weakness or iffiness which is technical term. is the downturn continuing or time to pick up bargains in this sector? we have a second half setup with the number one retailing analyst on the street. don't go away. [ male announcer ] once, there was a man

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liz: it is a beat for google on revenue. they just reported moments ago. david: a beat on one. let's head back to nicole petallides on floor of new york stock exchange. there is kind of mixed information in this report, right, nicole? >> there is a lot to digest in this google story. look how they're doing in after-hours. closing value is 5.80 and change. bid ask is 5.86, $7 range. the earnings per share looking

6.08 the actual, versus 6.24 the estimate. numbers for revenue, 12.67 billion and that's, ex-tac, make sure to note this, versus 15 billion. big picture i want to get to the clicks which is important because we want to see the average cost per click, right? you want to see that number, what it does and you want it to be higher but actually is down approximately 6%. i shouldn't even speculate. i will tell you what it is. related to ads served on google sites and sites of network members down approximately 6%. the stock is coming off earlier highs of the day. and there it is in the after-hours. it is higher. david: it is up a little bit on after-hours on the bid anyway. thanks, nicole petallides at the nyse. liz: shortly after 11:00 a.m. eastern time this morning the crash of the malaysia airlines passenger jet in the eastern ukraine region immediately sparked all kind of speculation it had been shot down. if that is true, the question

becomes, who is responsible? >> of course if russia played any part, will the u.s., must the u.s., get involved? if so, what options do we have? with us john herbst, the director of atlantic council your asia center and former ambassador to ukraine and nile gardiner, margaret thatcher foundation at heritage foundation. this plane was so high at 33,000 feet. it was not taken down by shoulder-fired missile the kind rebels have. it was either ukrainian or it was russian f it was russian and ukrainians said they had no long-range missiles in the area it was shot down at the time, so if it was russian what must the u.s. do in regard to certain treaties? i know ukraine is not member of nato. it wanted to be at one point. it is not now. are there any actions the u.s. must do if russia took down this plane? >> i think you need to take a second look at your assumption because the head of the --

david: hold on a second, ambassador. i made no assumptions at all. i'm saying if it was a russian missile that brought this down, what happens? >> well, russia has already been conducting a campaign of aggression against ukraine for months, not just in crimea but in the east. the insurgency there is led by russians. it is supplied by russians and there are many russian fighters. so the kremlin is already responsible for the bloodshed there. this, if in fact this was russian-fired missile and i think evidence points more to the separatist it is, i could explain that if you like, this is russian-fired missile this is one more piece of evidence that russia is directly intervening in ukraine. i think there's a need for great greater western sanctions on russia. the nights made some sanctions yesterday which were significant -- united states made some sanctions yesterday which were significant and could be stronger. european sanctions were rather weak. they should be stiffened.

that is the proper response. liz: nile, you caused russia's illegal invasion a occupation, strong words but now it may very well turn the tables right back on vladmir putin because now the world is watching. we have read horrific accounts of people on the ground, in a seven-mile area in eastern ukraine where this plane went down. many of the bodies are intact. it is horrifying, the descriptions that we have read with some of these print reporters right there looking at it. does the whole world now look at vladmir putin and say this has got to stop? >> absolutely. i do think looks like an act of terrorism either carried out by russian-backed separatists or by moscow itself and vladmir putin is rapidly becoming an international pariah on the world stage. and no matter how much he tries to deny, i think any sort of russian culpability here that will be extremely difficult but, all the evidence suggests that this plane was brought down by a

sophisticated missile of the kind that russia has large supplies of. and, i think this is a, this is going to be a real game-changer for the situation with regard to how russia is treated on the world stage. it is going to significantly increase the pressure i think upon america's european allies to do more to stand up to vladmir putin. it is going to increase the pressure on nato alliance to adopt more robust stance in the nation of russian aggression. it will increase the heat on president obama to adopt a tougher stance. david: it may increase the pressure but, ambassador, i'm wondering what will actually happen? we've seen pressure amount on administration and foreign policies issues without the administration taking strong action in the past and syria, other examples, russia included when they went into crimea. what happens though, we mentioned before, this wasn't a shoulder-fired missile. that is not an assumption. that is a fact. shoulder-fired missiles don't go

that high at least kind used in ukraine bit rebels. liz: hold on, david, there is breaking news about that. a senior u.s. official is confirming to fox business that this plane was brought down by a buk missile. of the both side have these, right, david? david: both side have it, but ambassador, perhaps you fill us in whether or not the russians had the buk missiles on the borderline, or whether the ukrainians did? if was brought down by a buk missile, a very complex missile system, would we be able to find out specifically who fired isn't. >> here's what we know. the russian leader of the separatist forces in ukraine, colonel strokov, put on his russian facebook equivalent, shortly after the plane was shot down, that they had shot down a antonov-26 ukrainian transport plane. he said it was shot down in the

area of torez. this was before he news this was a commercial airline that was shot down. later he changed his website to delete the reference to torez. he also deleted from his website what he had said, we said this was an area we do not permit people to fly in. there was also a phone intercept between another russian lieutenant colonel, saying, right after the plane was shot down, we shot down a plane. so the evidence points to the separatist it is. we know that in the period of the last several weeks, especially when the europeans do not make serious sanctions against russia at end of june, despite their threat -- david: excuse me for interrupting, ambassador, we're running out of tie, would separatist its have the sophistication to fire a buk missile? >> certainly. people like him, people like bisler, are experienced military professionals of some of them would but clearly they made a mistake by shooting down a commercial airliner.

whoever shot them down was not particularly competent. liz: nile, i have to bring up what is happening in israel. israeli military launch ad ground effort in gaza. this is confirmed by prime minister netanyahu's office. that is cs happening. the sky is lit up. they started gaza to quote, destroy underground tunnels reaching into israel. such tunnels, according that hamas terrorists infiltrated israel and attempted to carry out a massive terrorist attack against sis israeli citizens. this was thwarted by idf, israeli defense forces. does something like that play into this at all? >> i think that you know, we're combating terrorism on both sides of the world. we're combating terrorism in eastern ukraine, backed by russia. we're combating terrorism on the gaza strip.

i do think israel's actions are to be welcomed here. i think benjamin netanyahu is taking the right course of action. he is someone standing up to terrorism. i hope that president obama will be giving full u.s. backing to the israelis with regard to this latest action. and this is also a moment for strong u.s. leadership on the world stage. we haven't seen a great deal of that recently. this is a moment for america to, to really rally the free world, in the face of tyranny, in the face of despotism and face of mounting terrorism as well. around i do think that the israelis deserve a great deal of credit for taking the fight to tariffs trying to seek destruction of israel and free world. david: we have to leave it at that, gentlemen. we went over our limit. ambassador thanks very much for joining us and nile gardiner. liz: we'll be right back. i had no idea i had shingles.

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liz: so far this year is retailers that have been underperforming the market with many blaming the weather initially for poor sales. now what do you blame? will we see a turn around the rest of the year? are there any bargains in the sector? do you want to really ignore this entire sector and not have any names in your portfolio? for our second half outlook series, wed burb v p.m. she is the number one clothing and analyst on "wall street journal"'s best of the street. congratulations on that title. that is certainly will. talk about the calls that you had beforehand and what you have now. how are they different? because retail has been lagging. >> we cover clothing and footwear manufacturers, not so much retailers in my sector. so we're covering the brands and brands that we're outperforming last year continue to outperform this year.

that is kors, kate spade, underarmor, vf corp and deckers. those are the ones we stick with. liz: like any other sector you have got to be a stock-picker here. what do you look for when you say we do like underarmor which by the way has done pretty well? it is well off its 52-week low, i belief was $29. look at it today, 61.60. liz: we like underarmor for international growth opportunity. they're building out their footwear presence this. is new category for them, restarted from a couple years ago and they're really gaining a lot of traction in the market. athletic is a huge trend, athletic footwear. liz: whether underarmor, vf corp or deckers outdoor what do you think of or look for any name that you say we like? >> we love to see market share and categories outperforming such as athletic. we love anything cold weather right now. it was a very cold winter last year. retailers will start to build

back inventories. they were caught a little light last year if you recall. people couldn't get boots in new york city. they will build inventories for this year. we love everything with a cold weather bent also. liz: i remember reading a great piece in the journal, they certainly couldn't get boots in missouri, for example, they also got hid with cold-snaps. names like deckers outdoor, uggs, this is dicey one. if i see one more article, that says, oh, they're passe, are they? when you talk about trend to watch, what do you look for? >> this is comfort trend. putting away your feelings how you actually feel about comfort, it is a trend going on now over 10 years. so -- liz: i rather cameron diaz wore them first. somebody snapped a picture and that was end of that. >> they have a new line for tweens coming out. that is new line, kids 8 to 13 years old. liz: how do you see second-quarter earnings as we head into the reporting season look for some of these names? >> you have to pick your spots.

we like vf corp which reports tomorrow. we like underarmor that reports following week. those are our two top and kors the following week. liz: finally what do you avoid at this point? >> given sluggish market everything is very promotional now. that means apparel retailers will be under more pressure for back to school. we would probably avoid that group. liz: athletic and footwear she says. thank you so much. congratulations on the journal art kill. corina friedman. david, to you. david: chinese e-commerce giant alibaba preparing to launch its much-anticipated pipe poe this september. amid the excitement are re overlooking national security? one guest coming up says alibaba listing could mean serious security problems for the u.s. and you. what strategies could hurt your portfolio? should you trade on a wild day like today? do you trade on the black swan or not? details coming up.

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♪ ♪ [ 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. liz: time for a look at today's market drivers. stocks did fall into negative territory. they were already negative. when news came that a malaysian airlines passenger jet crashed near the russia-ukraine border. we saw selloff. markets tried to make a come back. it didn't quite work. it pushed nasdaq and s&p into the red for the week.

u.s. housing construction and permits sank in june. housing starts dropped 9.3% last month, posting their weakest performance in a full nine months. the number of americans filing for first time unemployment benefits, this is good news, unexpectedly dropped last week falling 3,000 to now 302,000. it economists forecast jobless claims would rise to 3 10,000. david? david: as liz was saying stocks tumbling into the red about the crash of a malaysian airlines jet in ukraine. many investors make decisions based on headlines like these although it is considered a poor strategy by market experts. are there other popular strategies hurting your profits as well? liz: let's debunk some of these big investment myths. we have the a man who worked on a list with five important ones. we'll get them right off the back here. the investment myths you begin with, oh, you too can be warren

buffett. why can't i be warren buffett? he started off small? >> hi, liz, hi, david. yeah i think the myth of warren buffett misconstrues the way buffett actually built his business and i think it is dangerous i think people sometimes oversimplify what buffett really does and when you look at berkshire hathaway, and you look at the complexity of the business you actually find that what he has built is something incredibly sophisticated. this is not just simple value investing or stock picking sort of strategy. it is a very complex business involves what is very similar to a multistrategy hedge fund. buffett is built basically an insurance business that operates a lot like an option writing house. then he implemented all these sort of multistrategies around it that include derivatives and stock-picking elements of course and other elements much more sophisticated than average investor probably thinks buffett is really implement. so it is very difficult to replicate. that is the important takeaway

about the myth of warren buffett. david: the second myth it is not so applicable in these times because the market has done so extraordinarily well in the last year-and-a-half but you have to beat the market. of course if you just, if you just parallel the market these days you're doing great but with the exceptions of days like today. >> right. david: why is that a myth? >> well i think it is important to keep things in perspective. i work with some sort of a macroperspective. in the aggregate we're all the market. it is very important to keep that in mind, in the aggregate nobody really beats the market. within that idea of actually beating the market you have people who of course do beat the market. over the long term it is very difficult to actually outperform the s&p 500, which is comprised of 500 of the greatest companies that have ever existed. you know, i like to sort of use analogy of underperforming the market is sort of like telling your children that, if they don't become a basketball all-star, something like that, they're underperforming everyone else.

it is important to keep in mind out of millions of companies, the s&p 500 is a very, very high benchmark. so i think that creating a portfolio that underperforms the s&p 500 isn't always a bad thing. in fact, trying to do so can be impediment to achieving financial goals. liz: colleges do what warren buffett says now. he is very much believer simply buying index. >> right. liz: move on to myth number three you get what you pay for. what do you mean by that and why is that a myth? >> so i think a lot of investors assume if they pay more for something they're necessarily getting something better. so you see sort of the sexy vehicles like hedge fund or a lot of at this strategy -- multistrategy mutual funds. fancier etfs are more expensive. you're sold this idea you're getting a ferrari if you pay the high cost of the ferrari. what we find with at that lost these actively managed strategies that in fact, the more expensive strategies often, they don't perform like a

ferrari. they perform more like pinto. important to look under the hood. david: i got to jump in here, if you're going to get number four in, you have to do it in 20 seconds. fundamentals and technicals. those are two different ways of looking at things. some people say you have to choose one or the other. what do you say? >> right. one of themes you will find with my work it is important to not be dogmatic about stuff. keep open mind. there is lots of different strategies that an add value to your approaches. i think it is important to find value in both sides of the argument. understand that it is neither fundamentals nortek cast that will necessarily lead to you some holy grail. there is elements of both that are useful. david: we tried to tell j.c. paretz, remember? technical guy. we should do both. cullen, thank you very much. appreciate it. >> thanks for having me on. liz: we will put some of his ideas on facebook.com/afterthebell. apparently shooting of the malaysian airliner over ukraine has u.s. officials scrambling to

find out exactly what happened and who is responsible, if someone is responsible. next, we take you live to washington for the very latest what the administration knows about the crash. david: and as we're looking to overseas events we look at this alibaba ipo. it is planning the ipo after labor day, one of the hottest offerings ever but is there a potential national security risk to u.s. investors? the chinese government will have all our information s that a good thing? ♪ i'm m-a-r-y and i have copd.

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david: almost immediate market action to the malaysian airlines crash, that this market has breaks and investors have to weight geopolitical risks. some say risks apply to alibaba since the company will store a lot of private customer information for millions of people which may be accessible by the chinese government. joining me is kevin freeman, national security investment consultant institute founder. you just had a conference exploring some dangers perhaps of the alibaba ipo. what are the political risks of it? >> well, there are several. you mentioned one. we know china told google, for example, if you operate in china you're going to have to pass along certain information. you have to stop doing certain things and google said no. and how much more would have

chinese-based internet company operating globally have to hand over things to the chinese government? so there are several risks. there are risks to u.s. investors if we offer an ipo here and race capital, they're investing in an entity based in the caiman island may or may not have actually ownership in the chinese company. david: there are a lot of legal issues. i don't want to get caught up into the legal weeds of things. we'll get into that. but for the moment something people can wrap their head around, we know the chinese government get into our information they're not supposed to from our companies, how much easier will it be tore them to get into information in one of their own companies? >> oh, absolutely. we have to assume, that there is chinese, either, people's liberation army money or chinese government money, somewhere in alibaba. we know also that the chinese have said, apple iphones may be a national security risk and they have looked at the possibility of limiting the use of iphones. this is, we play by rules that

the chinese do not play by. david: the key is here, not only investors but government officials seem to be turning a blind eye to it or just ignoring. one of the people at your conference, fred flights, former cia guy, also worked at defense intelligence agency, they know a lot what they're talking about, i'm quoting, china is using cyber wear fair to target foreign infrastructure, to identify dissidents, harass, kill, steal, industrial secrets and within the u.s. government and important world threats are being dismissed or being argued away. is that really true? >> well you know the unfortunate thing we silo our government so much. the sec will look at an initial public offering to say does it meet our standards? do they properly disclose the risk. there is no one looking at national security implications of us investing in a chinese company. there is all kind of efforts to prevent a chinese company from investing in the u.s. and looking at possible negatives

there. but we're so siloed that no one in the government is looking at this. wall street is looking at fees they will earn from what could be the largest ipo in history, possibly raising more money than google, facebook and twitter combined. david: all right. let's talk, again, i'm going to risk getting into a little bit of legalees here but something called variable interest entity. that is what this institution would be. that means it can certain laws can apply to it from china and certain laws can apply to it from the united states but those laws might conflict at various points. in the case of a conflict, where would alibaba go? >> of course they will go with the chinese. that's where they're domiciled. that is where money, primary ownership is located. a vie is not that complicated. basically it's a structure designed to make americans and foreign investors think it's a foreign company and chinese investors think it's a chinese company but at the end of the day, chinese law will apply and

the vie structure may not even be legal in china. david: here's the final question. this would be a big change and a lot of bankers would hate it. but do you think that any chinese company trying to put an ipo into our, one of our institutions should be denied? >> well, this is a special instance for a couple of reasons. one is the size of it. and the second it is an internet-based company. some of the ipos of chinese companies don't have the vie structure. you actually have some say in the board of directors and ownership. this one is a special instance and i think it needs to be scrutinized as such. david: there are big questions about baidu too which we don't have time to get into. kevin freeman. very good to see you. appreciate it. >> thank you. david: liz? liz: flying cars, david, may still be far off but one jetsons era vision of the future may soon become reality. we have the the details next. u.s. government officials are investigating what happened to that malaysian airplane that

crashed in eastern ukraine killing nearly 300 people. news breaking just now it was indeed something called a buk missile that shot that plane down. we're taking you live to d.c. for the very latest. don't go away. [ male announcer ] this is the age of knowing what you're made of. why let erectile dysfunction get in your way? talk to your doctor about viagra. ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain. it may cause an unsafe drop in blood pressure. side effects include headache, flushing, upset stomach, and abnormal vision.

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david: breaking news in the past 30 minutes that a buk missile took down malaysian airlines plane in ukraine today. liz: peter barnes from d.c. with very latest. peter? >> dave and liz, that is according to a u.s. official. vice president biden seeming to perhaps kind of confirmed this in remarks a few minutes ago. he said that the plane was apparently shot down. he said it was not an accident. it was blown out of the key. he also was on the phone with ukrainian, the president of the ukraine, parry shen co, and offered -- poroshenko and offered u.s. assistance. the ukrainian president accepted that help, and that help will be on the bay rapidly, to see if we can get to the bottom of this. now the president was at an event in delaware today, port of wilmington, talking about infrastructure but began his

comments, commenting on the downed plane, the downed malaysian flight. here's what he said. >> we're working to determine whether there were american citizens on board. that is our first priority. and i directed my national security team to stay in close contact with the ukrainian government. the united states will offer any assistance we can to help determine what happened and why. and as a country our thoughts and prayers are with all the families and passengers wherever they call hope. >> vice president biden, the president there talking about possibly americans on that flight. vice president biden also talking about that just a few minutes ago and there have been reports that americans may have been on that flight. speculation at this point. we're awaiting confirmation as you know. david and liz. david: awful news day. peter, thank you very much. >> thank you, peter. well we talk about assistance in the work place? forget an assistant. there is a new invention that

could act as your personal messenger and engage in conversation and act as a friend with personality. we have details when we take you "off the desk."

gerri: earnings alert. google reported better than expected numbers earlier this hour. let's get back to adam. >> let's break them down again for you, liz. google earnings per share was a miss. $6.08, versus what street expected, $6.24. revenue, this is when you extract traffic acquisition costs what they pay to attract traffic to the websites. now their net revenue came in at 15.96 billion. the street was expecting 15.61 billion. ly, back to you. david: very good. trading up after-hours. go "off the desk." having a pet is big responsibility. why not get a robot instead? one mit professor developed a robot for personal interaction. it will cost 500 bucks.

liz: "the willis report" is next. gerri you look at impact of the plane crash and what it means for everybody watching on fox business. gerri: liz and dave, thanks for that. all eyes on the ukraine and gaza. should you watch your wallet as international tensions send stocks tanking. coming today on the show, we're taking a wild ride with the tour of the best water parks in the country. when you have kid and water together, safety is a top priority. we'll show you a dramatic rescue and important lesson every family needs to learn tonight. we're helping you get into finances into shape with our money coach. "the willis report" where consumers is our business starts right now. gerri: we begin with the latest on the malaysian boeing 777 shot down over ukraine today. u.s. intelligence officials now say it was russian-made surface-to-air missile that brought the plane down but those officials are not sure where it was fired from. we know the plane went down