design company. [closing bell ringing]. lumina biotech also doing very well. >> close to or highs of the session. bells ring on wall street. record for the nasdaq at least today was up 45 but the nasdaq hit a record for 2014 today. the s&p, right about the session high. in fact added another point to it, up 16 points. russell 2000 having just a great day, up 1 1/2%. guess what? we have a jam-packed "after the bell." it is starting right now. liz: adam shapiro in for david asman today. adam: good to be here especially on a day we're posting triple digit volume. charlie brady was harping, where is the volume. we have a portfolio manager who says stocks are not expensive

right now. michael muse yo, says fbb portfolio manager, tells us why he see as pickup in the second half of the year. scott shellady, in the pits of cme. start with scott. how do you account for this rally. real rally? volume being light? should we be worried about that. >> not be worried and you can be disgusted. the reason i say disgusted, the reasons we're rallying because there is no reason not to rally? isn't that the biggest story of the day? adam: sound like bubble. >> tell you what, we had geopolitical things taken off the map. give me something more than geopolitical tensions easing for this kind of a rally. it is a little bit suspicious. so i think i'm not really buying into it too much. you don't want to be short stocks here. ultimately you will have stocks and bonds both eye higher on the year. s&p will be up 10%. will be a bumpy ride and days like a couple weeks ago, ugly to

the downside. liz: scott, i love you. why are you fighting the tape? you're angry at reasons stocks are moving higher but they're moving higher. don't you want to capitalize on that. >> want me to be like rest of the retail world buy when it is high and sell when it is low? liz: no, scott. four months ago people were saying that and what has the market done? >> i said we'll have 10% on s&p. i can't get talking about low news day. adam: you believe the s&p 500 to on track to show the year out at 2050. are you still optimistic? >> absolutely optimistic, adam. i think it will be a choppy ride. investors have to understand that is okay. don't get bogged down. if you're trader you will get bogged down on day-to-day volatility f you're investor go

with it. understand that the economy is growing and earnings are growing 10% year-over-year. the conference calls, going into q3 numbers were pretty positive and uplifting as well. you will have 100 point up days and down days. will be like that forever, probably. you go with it and understand the general trend is higher. liz: let me get to michael. are you more with the scott shelladys of the world? you feel this is getting a little ripe? >> i'm closer aligned with all our, than scott. we manage balanced portfolios. on any given day we buy stocks or bonds. we think stock market has better valuation than 2.30, whatever it hit on friday.

we look for opportunities in businesses generating strong cash flow, returning cash flow to shareholders and recently we're looking for is stocks that may be corrected a little bit more than the market has here the last few weeks. adam: michael, he want to ask you about something real quick. i notice that you like among the financial stocks bank of america. we had one of the people that did research study for s&l financial last week that pointed out some of the bigger banks like bank of america are maybe juicing their overall numbers and use loan-loss reserves and post them back into the earnings side and there might be trouble going forward, so why do you like bac. >> earnings quality will be issue when loan-loss reserves inflate like after the crisis to where they are now but when you peel back the layers of the on i don't know, bank of america, our chief investment officer hated by wall street. government wants their money and main street can't stand them either. earlier in the year they couldn't count but neither could the federal reserve.

so you see what is potentially coming down the pike in returning capital to shareholders it is not all that bad of a picture. it could take a little bit more time. more of a longer term than a quick trade but we think there is value in bank of america. liz: oliver, look at your stocks here, verizon, cvs, pepsico, apple, a guy like you, how closely do you watch the news flow? i'm talking about everything from what is going on iraq, everything going on between ukraine and russia and in our own backyard in america, ferguson? >> we do pay attention to that. we understand that has impact on businesses and economies. look, for instance, russia and ukraine, that has been regional problem. it had global headlines but reality it has not impacted european economy, has not impacted natural gas prices or energy prices in europe. all that much yet. and apart from short-term spikes and volatility, it remained regional. so to us, it means still

contained issue and isn't going to impact the way we look at companies that, as, you know, other guest just said, return to capital to investors. that is high-quality dividend-paying stocks that are going internally and doing very, very well. adam: let me pose a question to you about that, oliver and i want to bring you back to the small investor, regular gal and guy who want to ask this question. we're seeing stocks pushed by the fact that companies are buying back their shares. they're not being pushed higher by the fact there might be growing revenue or sales. isn't that troubling going forward? >> so that is a very general statement and broadly speaking would agree with you but that's why we pay attention to much more than price to earnings ratios and share buybacks. we look at quality of dividend, how solid is the balance sheet and transparent are the earnings? price to cash flow and price to sales. there are lots of other metrics money managers will look at to help make sure you're buying a solid company not just inflating some sort of a p-e ratio, or

earnings, by accounting gimmickry, basically. you have to be careful with share buybacks. investors love them. what are they doing with the shares? if they're just reissuing them as employee compensation -- liz: i am so with you on that. half the time nobody follows through with the thing. they use it for short-term pop on the stock. that lies on investor shoulder to say did they follow through with that. sometimes it is financial engineering. >> do your homework. liz: michael, yum! brands, tjx. casual dining struggled lately, certainly last week. we want to be longer term focused. why do you like yum? simply the china story? >> yum had a china sourcing issue last year around the stock corrected in the mid 60s in 2013. they got through that like we thought they would. it hit all-time highs in july and the company was hit with another kind of sourcing issue

of the they corrected that. they fired the company doing the sourcing. we think like they did previously they will get through this and china story for them is huge and they're raising the dividend. liz: who doesn't love that, yum! brands? well off its highs. you wouldn't buy at the high. you never want to buy at the high. thanks, gentlemen. oliver and michael. scott, you get warm. we'll see you in a few minutes. we'll see you when the s&p futures close. adam: a new study says 36% of americans have nothing, zilch, nada, nothing saved for retirement. we'll show you simple ways to get your savings back on track and make the most money you already have. liz: pressing the gas pedal? no gas in tesla. guess what, booming when it comes to the stock. tesla stock hitting all-time high, now up 71% this year alone with forward price-to-earnings ratio that is a little rich. more than google, apple, ford, gm combined! this question arises once again.

is the stock overvalued or is it a juicy momentum play? a bull and a bear on tesla, duking it out. adam: also estimated that the app economy created 725,000 jobs but that could all be coming to a halt as the appetite for apps is going out the window, it is waning. we have details 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. ♪

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adam: shares of dream works animation saw a nice 8% pop. liz: that is rare sometimes in that big of a chunk. ashery webster on the floor of the new york stock exchange. ashley? >> dreamworkss, studio, announcing the taking over at chief financial officer. he replaces lou coleman, named earlier this month on company's vice chairman to focus on what they call global growth initiatives. they noted an sec investigation into the studio $13.5 million write-down on the movie, "turbo." i don't know if you saw it. i didn't. doesn't appear many people did. it was a film about a snail being able to travel fast. what a shocker, din make any

money. certainly investors liking this news with the new appointment, the stock up more than 9%, guys. that is nice news for the company whose share price certainly suffered over last couple weeks. liz: "how to train your dragon" is a huge franchise and real driver. thank you so much. s&p futures closing right now. let's head back to scott shellady in the pits of cme. how does it look, scott? >> it looks pretty good. one of those days the best memory is no memory. knowledge is not power. knowledge gets you punished. go with the flow. looks like things will do well today. as far as rest of the week goes, okay obviously jackson hole rest of the week. expectations for yellen to be a little dovish. we'll see how the market takes that then. we'll have a little economic news but all meeting at end of the week. adam: i think the quote is knowledge is good. >> knowledge is punished!

adam: see you later. liz: we love scott and the cow cape. tesla, up more than 75% year-to-date, once again. look at this, hitting all-time high today. this is year-to-date picture. but the green dot, for the existence of this company being a publicly-traded company. it is its fifth all-time high in six sessions. with shares about $300 now, and a p-e ratio, price to earnings ratio more than 200, is the tesla growth about to start to shrink a little bit? or will this run continue? time for a street fight. we have the bull, standing by, watching jeff reeves, our bull. investorplace.com editor. for the bears, john thompson, vils capital management ceo. john, i want to talk about short interest, when i've been covering tesla even before public, people said it can't work. then it goes public. short interest climbed and

climbed. it is starting to shrink a little bit. i asked elon musk at the time when it was rocketing in short interest, here is what he said. then we'll have you comment what he said? >> i think it is very unwise to be shorting tesla. i mean, this is very unwise. liz: that was 2012, it has been an unwise plan. you still feel right now you need to be bearish, why? >> athundred times earnings as you said -- 200 times earnings, the future of the company has almost no probability of living up to that share price. you've seen in the past with stocks that have been trading at levels similar to that like cisco systems back in the late '90s or aol-time warner, they don't live up to the stock price. in cisco's case their earnings are up five-fold since 2:00. the stock is down 70% still -- 2,000. even though tesla the company could do fairly well i think the

stock will do lousy. liz: jeff, you disagree. you feel tesla, it's a buy at the current levels, correct? what do you think when you hear exactly what john articulates, that it can't live up to p-e ratio of 200. >> i don't have to see that at all. john is right, doesn't necessarily mean tesla will fail as company. may succeed as company. it may roll back. what i'm trying to do, scott said, i wouldn't go it to say knowledge doesn't matter and important go with the flow and take what the market is giving you and market is giving upside potential in the tesla. hard to bet against a company short term. the problem with company like tesla much like apples of world and they want to talk about whether elon musk will be next steve jobs or whether it will be around next five or 10 years, whether earnings will catch up with it. i'm not that concerned. articles in investorplace.com, you have 30, to 60 day windows to trade the stock. anybody that knows where tesla

will be in 16 months or 18 months they're fooling themselves. i would be comfortable swanking 260 in share price above 300. i'm saying beyond a couple months down the row it is anybody's guess what will go on. liz: $254.94 a share. john, do you see tesla becoming competitive, rolling the cars off an assembly line at much faster clip at some point? they definitely have the cool factor at the moment. people want them. >> oh, absolutely. it's a beautiful car. they have done a fabulous job marketing to a very high-end clientele right? it is $100,000 car. the problem is that it has roughly half the market value of honda and, their prices if it will be a mass market car. i think there's a real problem when you look at the battery and how it takes a long time to charge i it, whether 45 minutes on supercharger, or eight hours at your house, i mean that is a

long time compared to filling up at a gas station. and the range just isn't there. 200, 250 miles, just isn't enough for the, for 95% of your trips it is fine. but 5% of the time you're drive kids to michigan for a soccer tournament or seeing grandma in far away place over the holidays. not just a car for the every day person. liz: that's why i pulled my kid out of peewee hockey. i'm not driving to boston on the weekend. that is ridiculous you. >> probably have two cars, right? people who can afford to buy tesla not like they're nickel or dime having tesla to take the bus. liz: jeff, elon just came out and said they are going to upgrade the warranty, people like that. that the warranty will be upgraded. it will affect earnings because that is how those things work. costing them more to give more coverage of all of that. i guess in a way people want to hear from you that this company will eventually get it right?

that is what they believe about amazon. amazon's p-e ratio is insane and they're not making money but people feel they're on the right track. same with tesla. >> i would say, to people who compare tesla to other companies it is weird analogy but look at chipolte. what ultimate reality will you buy a restaurant stock that trades in beans and rice for 40 times future earnings, right? it sounds insane. chipolte is great investment. there is not a lot of growth alternatives. people believe in the stock. other stocks like gopro or twitter, i don't know if twitter has longevity when it comes to earnings. short term they make a lot of money. i don't necessarily disagree about the challenges in the short term but sentiment has a lot of upside. liz: quickly, last word. >> chipolte is 40 times. there is big difference between 40 times and 200 types. liz: but, yeah. >> future earnings actually only 72 so. >> there you are. quite a difference but --

>> non-gaap too by the way. >> jeffrey and joe, we want you back because tesla is one of the most exciting stories and they are, as first u.s. car company to be started in 100 years. adam: my older brother has a tesla. for record, he takes mrta in atlanta because he is tight. people that buy tesla watch their account. troubling new headlines how americans save for retirement even if the final years of work. we'll talk to editor of real deal retirement.com what it really takes to build your golden nest egg. liz: new clouds are forming over the app economy that was so superhot after years of explosive growth that created hundreds of thousand of new jobs. is the app bubble about to pop? we'll show awe very revealing new survey. adam: speaking of apps, we'll tell you about a new one that could pep you bypass airport

security. tell you all about it coming up. ♪ shingles affected me tremendously as a pilot. 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 to move to change radio frequencies. i mean it hurt. i couldn't even get up and drive let alone teach somebody and be responsible in an airplane. as a pilot that meant i was grounded. stuart! stuart!

stuart! stuart! ♪ check it out. this my account thing. we can tweet directly toa comcast expert for help. or we can select a time for them to call us back. the future, right? ♪ this doesn't do it for you? [ doorbell rings, dog barks ] oh, that's what blows your mind -- the advanced technology of a doorbell.. [ male announcer ] tweet an expert and schedule a callback from any device. introducing the xfinity my account app. liz: time for a quick speed read of some of the day's other headlines, five stories one minute of the first up according to a new usda report a child born in 2013 will cost parents 245, 340 toll to raise and care for through age 18. this is up 8% since october of

2012. mercedes-benz found guilty by chinese regulate, for manipulating prices for after the service sales, parts and maintenance, considers a violation of the country's antimonopoly laws. retail giant, target, extending opening hours in some locations staying open to 11 p.m. or midnight on weeks days. the new hours begin next month. bourbon sales in kentucky has reached highest level since the 1970s. bourbon production is up one one hundred% last 15 years. tom hanks with the sound of typewriters. why do i need that? adam: certain words can't make on tv with type writer. remember those days from long time ago. this could be a game changer

in the smartphone business, demand for apps actually falling so are apps just a passing fad? what does this actually mean for the entire app business. liz: maybe since tom hanks is getting into it. adam: jumped the shark. liz: totally. joining us with the story, jo ling kent. >> liz, that might be the bubble top we're looking for. deloitte is forecasting that we will soon hit a in the app economy in a research report. one in three smartphone users in the united kingdom does not download a single app in typical month. why? because of increased apathy and cost of apps. that pushed average number of apps downloaded to 1.82 overall, down from 3.22. you have to watch this stat, guys. nine out of 10 people also tell deloitte they never spend money on apps or other smartphone content. which points to potential spending ceiling. we're looking at one very good example of this, king digital, unfortunately. their earnings report last week showed customers spending on

"candy crush" saga dropped off faster than expected. the other games they're trying to market, they are not making up the difference and their stock is down 28%. liz: jo, we have have interrupt. president obama is about to speak. >> -- operation in iraq and situation in ferguson, missouri. with respect to iraq we continue to see important progress across different parts of our strategy to support the iraqi government and combat the threat from the terrorist group isil. first, our military operations are effectively protecting our personnel and facilities in iraq. over the last 11 days american airstrikes have stopped isil advance around the city of erbil and pushed back the terrorists. meanwhile we have urgently provided additional arms and assistance to iraqi forces including kurdish and iraqi security forces who are fighting on the front lines. today with our support iraqi and

kurdish forces took a major step forward by recapturing the largest dam in iraq near the city of mosul. the mosul dam fell under terrorist control earlier this month and directly tied to our objective of protecting americans in iraq of if that dam was breached, it could have proven catastrophic with floods that would have threatened lives of thousands of civilians and endanger our embassy compound in baghdad. iraqi and kurdish forces took the lead on the ground and performed with courage and determination. so this operation demonstrates that iraqi and kurdish forces are capable of working together and taking the fight to isil. if they continue to do so they will have the strong support of the united states of america. second, we're building an international coalition to address the humanitarian crisis in northern iraq. even as we've worked to help many thousands of yazidis escape the siege of mount sinjar,

hundreds of thousands of iraqis have been displaced by isil's violence and many more are still at risk. going forward the united states will work with the iraqi government as well as partners like the united kingdom, canada, france, italy and australia to get food and water to people in need and to bring long-term relief to people who have been driven from their homes. third, we will continue to pursue a long-term s turn the tide against isil by supporting the new iraqi government and working with key partners in the region and beyond. over the last week we saw historic progress as iraqis named a new prime minister-designate, haider al-abadi, and iraq's outgoing prime minister maliki and agreed step down. this peaceful transition of power will mark a major milestone in iraq's political developments but as we're all aware the work is not yet done. over the next few weeks dr. abadi needs to complete the

work of forming a new, broad-based, inclusive iraqi government. one that develops a national program to address the interests of all iraqis. without that progress, extremists like sissel can continue to prey upon iraq's divisions. with that new government in place iraqis will be able to unite the country against the threat from isil and they will be able to look forward to increased support, not just from the united states but from other countries in the region and around the world. let's remember, isil pose as threat to all iraqis and to the entire region. they claim to represent sunni grievances but they slaughter sunni men, women and children. they claim to oppose foreign forces but they actively recruit foreign fighters advance their hateful ideology. so the iraqi people need to reject them and unite to begin to push them out of the land they occupied as we're seeing in

mosul dam. this will take time. there will be many challenges ahead but meanwhile there should be no doubt that the united states military will continue to carry out the limited missions that i've authorized, protecting our personnel and facility ises in iraq, in both everybody beale and baghdad and providing providing humanitarian support as we did on mount sinjar. my administration consulted closely with congress about our strategy in iraq and we will continue to do so in the weeks to come because when it comes to the security of our people and our efforts against a terrorist group like isil we need to be united in our resolve. i also want to address the situation in ferguson, missouri. earlier this afternoon i spoke with governor nixon as well as senators roy blunt and claire mccaskill. i also meet with attorney general eric holder. the justice department has opened an independent federal civil rights investigation into the death of michael brown. they are on the ground and along with the fbi, they are devoting

substantial resources to that investigation. the attorney general himself will be traveling to ferguson on wednesday to meet with the fbi agents and doj personnel conducting the federal criminal investigation and he will receive an update from them on their progress. he will also be meeting with other leaders in the community who support is so critical to bringing about peace and calm in ferguson. ronald davis, the director of the doj's office of community oriented polices services, or cops, is also traveling to ferguson tomorrow to work with police officials on the ground. we have experts from the doj community relations service working in ferguson since the day as of the shooting to foster conversations among local stakeholders and reduce tensions among the community. let me close just saying a few words about the tensions there. we have all seen images of protesters and law enforcement in the streets. it is clear that the vast

majority of people are peacefully protesting but what is also clear that a small minority of individuals are not. while i understand the passions and the anger that arise over the death of michael brown giving into that anger by looting or carrying guns and even attacking the police only serves to raise tensions and stir chaos. it undermines rather than advancing justice. let me also be clear that our constitutional rights to speak freely to assemble and to report in the press must be vigilantly safeguarded especially inment moments like these. there is no excuse for excessive force by police or any action that denies people the right to protest peacefully. ours is a nation of laws. for the citizens who live under them and for the citizens who enforce them, so, to a community

in ferguson that is rightly hurting and looking for answers, let me call once again for to us seek some understanding rather than simply holler at each other. let's seek to heal, rather than to wound each other. as americans we've got to use this moment to seek out our shared humanity that has been laid bare by this moment. potential of a young man and the soros of parents, the frustrations of a community, the ideals that we hold as one united american family, i've said this before, in too many communities around the country a gulf of mistrust exists between local residents and law enforcement. in too many communities too many young men of color are left hine and seen only as objects of fear. through initiatives like my brother's keeper i'm personally

committed to changing perception and reality and already we're making some significant progress as people of goodwill of all races are ready to chip in but that requires that we build and not tear down. that requires we listen, and not just shout. that is how we're going to move forward together. by trying to unite each other and understand each other and not simply divide ourselves from one another. we're going to have to hold tight to the values in the days ahead. that how we bring about justice and that is how we bring about peace. so with that i've got a few questions i'm going to take. i will start with jim kuhn from ap. >> here mr., president. the incident at ferguson led to discussion whether it is proper to militarize the nation's city police forces. i'm wondering do you see that as

factor regarding the police response in ferguson? and also do you agree with the decision by the governor to send in the national guard? >> well, i think one of the great things about the united states has been our ability to maintain a distinction between our military and domestic law enforcement. that helps preserve our civil liberties. that helps insure that the military is accountable to civilian direction, and, that has to be preserved. after 9/11 i think understandably a lot of folks saw local communities that were ill-equipped for a potential catastrophic terrorist attack and i think people in congress, people of goodwill decided, we've got to make sure they get proper equipment to deal with threats that historically

wouldn't arise in local communities. and some of that has been useful. some law enforcement didn't have radios that they could operate effectively in the midst of a disaster. some communities needed to be prepared if in fact there was a chemical attack and they didn't have hazmat suits. having said that i think it is probably useful for us to review how the funding has gone. how local law enforcement used grant dollars, to make sure that what they're, what they're purchasing is stuff that they actually need. because, you know, there is a big difference between our military and our local law enforcement and we don't want those lines blurred that. would be contrary to our traditions. i think there will be some

bipartisan interest in reexamining some of those perhaps. with respect to the national guard i think it is important just to remember this was a state activated national guard. so it is under the charge of the governor. this is not something we initiated at the federal level. i spoke to jay nixon about this. expressed an interest in making sure that if in fact the national guard is used, it is used in limited and appropriate way. he described the support role that they're going to be providing to local blue enforcement and i watch over next several days to assess whether in fact it is helping, rather than hindering progress in ferguson. steve holland, reuters. >> thank you. how do you avoid mission creep in iraq and how long do you think it will take to contain isil? >> well, i have been firm from the start that we are not

reintroducing thousands of u.s. troops back on the ground to re-engage combat. we're not iraqi military or the iraqi air force. i'm of the commander and chief of the united states armed forces and iraq is going to have to ultimately provide for its own security. on the other hand we've got a national security interest in making sure our people are protected and in making sure that a savage group, that seems willing to slaughter people for no rhyme or reason other than they have not kowtowed to them, that a group like that is contained because ultimately it can pose a threat to us. so, my goal is number one, to make sure we've got a viable partner. and that is why we have so consistently emphasized the need for a government formation

process that is inclusive that is credit ab, that is legitimate and that can appeal to sunnis as well as shia yous and kurds. we made significant progress on that front but we're not there yet and i told my national security team today and i will say publicly that we want to continue to communicate to politicians of all stripes in iraq, don't think that because we have engaged in airstrikes to protect our people that now is the time to let the foot off the gas and return to the same kind of dysfunction that has so weakened the country generally. dr. abadi has said the right things. i was impressed in my conversation with him about his vision for an inclusive government but they have got to get this done because, the wolf's at the door and in order for them to be credible with the iraqi people, they're going to

have to put behind some of the old practices and create a credible united government. when we see a credible, iraqi government, we are then in the position to engage with planning, not just with the iraqi government but also with regional actors and folks beyond the middle east, so that we can craft the kind of joint strategy, joint counterterrorism strategy that discussed at west point and i discussed several years ago at the national defense college. our goal is to have effective partners on the ground, and if we have effective partners on the ground mission creep is much less likely. typically what happens with mission creep is when we start deciding that we're the ones who have to do it all ourselves and, you know, that, because of the excellence of our military that

can work for a time. we learned that in iraq. but it is not sustainable, it is not lasting. and so, you know, i have been very firm about this precisely because our goal here has to be able to build up a structure, not just in iraq, but regionally, that can be maintained and that is not involving us effectively trying to govern or impose our military will on a country that is hostile to us. >> how long will -- [inaudible] >> i don't think, steve, at this point i'm prepared to provide a blanket answer to that. a lot of it depend on how effectively the iraqi government comes together. i think that you will see, if in fact that government formation process moves rapid by and credibly there will be a lot of

actors in the region around the world to help and step up assistance, who many of whom may have been reticent over last couple of years, because the perception was at least, the that baghdad was not being inclusive and it would be self-defeating to put more resources into it. i think you will see a lot of folks step up. suddenly iraq will have variety of partners. with more folks unified around the effort that is something that can be accomplished. it means that there is a prospect of of sunni tribes of primary residents of areas isil now controls saying we have a viable option and we would rather work with a central government that appears to understand our grievances and is prepared to meet them rather than to deal with, you know, individual who don't seem to

have any values beyond death and destruction. i'm going to take the last question from somebody who after 41 years i understand has decided to retire. ann compton, everybody here knows not only the consummate professional but is also just a pleasure to get to know. i was proud to be able to hug her grand baby recently and i suspect that may have something to do with her decision. but i just want to say publicly, ann, we'll miss you and very, very proud of the extraordinary career an work that you've done. we hope you're not a stranger around here. thank you very much. [applause] ann compton. >> thank you very much. >> ann compton. i suspect you may get some cake

at some point. >> let me ask you, this is an interesting time in your presidency, and one of the things that you have so emphasized in the last few months, last year or so, is this reach out to my brother's keeper and to a generation that doesn't feel that it has much chance. sending the attorney general to ferguson is a step. has anyone asked or have you considered going yourself? is there more that you can personally do, not just for ferguson but for communities that might also feel that kind of tension and see it erupt the way it has in ferguson? >> well, ann, obviously we've seen there is a big gulf between community perceptions and law enforcement perceptions around the country. this is not something new. it is always tragic when it involves the death of someone so young.

i have to be very careful about not prejudging these events before investigations are completed. because although these are, you know, issues of local jurisdiction, the doj works for me and when they're conducting an investigation, i have to make sure i don't look like i'm putting my thumb on the scales one way or the other. it is hard to address a specific case, beyond making sure that it is conducted in a way that is transparent, where there is accountable and people can just the process, hoping that as a con sequence of a fair and just process you indup with a fair and just outcome. but as i think i have said in some past occasions,.

part of the ongoing challenge of perfecting our union has involved dealing with communities that feel left behind, who, as a consequence of tragic histories often find themselves isolated, often find themselves without hope, without economic prospects. you have young men of color in many communities who are more likely to end up in jail oiminan they are in a good job or in college. and. part of my job that i can do i think without any potential conflicts to get at those root causes. now that is a big project.

it is one we carried out for a couple of centuries. it is extraordinary progress but we have not made enough progress so the idea behind my brother's keeper and can we work with communities, and clergy and parents and young people themselves all across the country, school superintendents, businesses, corporations and can we find models that work that move these young men on, on a better track? now part of that process is also looking at our criminal justice system to make sure that it is upholding the basic principle of everybody's equal before the law and one of the things that we have looked at during the course of, where we can make, during

the course of investigating where we can make a difference is that there are patterns that start early. young african-american and hispanic boys tend to get suspended from school at much higher rates than other kid. even when they're in elementary school. they tend to have much more frequent interactions with the criminal justice system at an earlier age. sentencing may be different. you know, how trials are conducted may be different and so, you know one of the things that we've done is to include the department of justice in this conversation under the banner of my brother's keeper to see where we can start working with local communities to

inculcate more trust, more confidence in the criminal justice system. and i want to be, i want to be clear about this because sometimes i think there is confusion around these issues and this dates back for decade. there are young black men that commit crime and we can, we can argue about why that happens because of the poverty they were born into or lack of opportunity or school systems that failed them or what have you but if they commit a crime, then they need to be prosecuted because every community has an interest in public safety. if you go into the african-american community or latino community, some of the folks who are most intent on making sure that criminals are dealt with are people who have been preyed upon by them. so, this is not an argument that

there isn't real crime out there and that law enforcement doesn't have a difficult job, that they have to be honored and respected for danger and difficulty of law enforcement but what is also true is that, given the history of this country, where we can make progress in building up more confidence, more trust, making sure that our criminal justice system is acutely aware of the possibilities of disparities in treatment, there are safeguard in place to avoid those disparitieses, where training and assistance is provided to local law enforcement who may just need more information in order to avoid potential disparity, all those things can make a

difference. one of the things i was most proud of in the state legislature way back when i had no gray hair and none of you could pronounce my name was, you know, i passed legislation requiring videotaping of interrogations and confessions and i passed legislation dealing with racial profiling in illinois. and in both cases we worked with local law enforcement and the argument was that you can do a better job as a law enforcement official if you have built up credibility and trust and there is some basic things that can be done to promote that kind of trust and, you know, in some cases it is just a lack of information, and which want to make sure we get that information to law enforcement. so there are things that can be done to improve the situation. but short term obviously right now, what we have to do is make

sure -- liz: president obama watching up a news conference in the white house briefing room that was hastily called and bifurcated. in iraq, additional arms and support provided by the u.s. government has helped kurdish forces recapture a dam in mosul iraq held by isil, the islamic state of iraq and left haven't, the -- levant, and humanitarian crisis in northern iraq while continuing has the focus and attention of the u.s. government and military. he turned to ferguson of course, the small community of 21,000 near st. louis, missouri, that has been rife with all kinds of riots and protests. the president focusing upon the fact saying the vast majority of people are peaceful there, giving into anger, and i quote, over the shooting of a black teen by engaging in looting and using guns, undermines rather than supports the cause.

he of course, adam, met with the governor, at least spoke to him about the national guard moving in keep keeping the peace. adam: while the nation is watching not only ferguson but issues going on overseas, and this next story would be front page news it, would be lead of a lot of newscasts. bankrate.com survey shows that 36% of americans have absolutely nothing saved for retirement. while that number may seem high to you, what is perhaps more surprising that 26% of people age 50 to 64 and 14% of people over the age of 65 have no retirement savings whatsoever, nothing. so what should you do right now to upgrade your financial security and plan ahead? walter, real deal retirement.com editor is here to help us answer the question. i appreciate you joining us. perhaps what is more telling, less than 60% of the entire nation, 60% of the entire nation has less than $25,000 saved for

retirement. how do you get ahead of that because that's a huge problem coming at us? >> well i think the first thing that people just one way or another have to realize if they want a to have a secure, comfortable retirement they have to save. i mean we're sort of hardwired for immediate gratification. all the things that we want now, you know are much more front of mind than things we'll need 20 or 30 years from now, but we have to make a transition to becoming better savers. adam: i would agree with you but how do you say someone perhaps in my age, in their 40s, how do you tell them you have to save more when wages are falling in the united states and people my age group may have to support their parents as well as putting their kid through school? where are you going to save? >> i think way you do it, trying to put savings on autopilot. try to sign up for your 401(k) program if you have one. try to put away 10%, try to

shoot for 15 if you can. if you don't have 401(k) do an automatic savings plan with mutual fund company where they take a little money out of your checking account each month. the trick here, it is difficult you have a lot of competing demands, if you don't put the money away you will not have anything for the future. you try to adjust your living standard to what you have after you have done some saving. adam: very quickly, congress is trying to address this issue. i know legislation, usa retirement fund act introduced by mr. harkin. does this address the issue? it would create a 401(k) type plan for every american and you would have to opt out, you would up aally enrolled, 6% of pretax income would be put into it? is that the right direction to go? >> well i think that will help because the initial thing to get over is inertia, people are not going to save. even if we say start at 6% that is not really quite enough. you have to try to encourage people to do even more. anything that would get people saving into the habit of saving

will help somewhat. on my site i have several stories show how even just a little bit or increasing savings by a little bit can make a huge difference down the road. adam: walter, i apologize we don't have more time to discuss since the president went on for quite a bit. good to have you here to address an issue really front page news. thank you, sir. >> my pleasure. liz: if you think new york is the most unfriendly city on the planet, you have to think again, folks. coming up we're going to tell you which cities are regarded as the most friendly and which ones the most likely to give you the cold shoulder. stay tuned for this list.

>> time to go "off the desk," if you want to be around the friendliest folks around head down under. survey been conde nast, said auckland new zealand and melbourne australia were friendliest cities. unfriendliness, johannesburg,

south africa takes the cake followed by other global cities like beijing, moscow and paris. adam: one friendly face you will see. gerri willis, "the willis report" is next. you will discuss a new report on troubles that military families, real important issues that they're facing. gerri: adam, thanks for that. yes, a quarter of our nation's soldiers and reservests seeking aid and relying on help and generosity of strangers. we'll tell you about that. also today on the show iconic american brands could go away. proctor & gamble is getting ready to dump ivory after the 135-brand that floats is about to sink. worried about your 401(k)? it could be worse. a report says a third of us have nothing saved for retirement. amazon fire smartphone gets rave reviews but not from consumer reports. they're here to tell us why it is not the ultimate shopping tool. "the willis report" where consumers are our business starts right now.