away anytime soon. [closing bell ringing] bells are ringing on wall street look at how the day is finishing. not a huge pullback. dow down 40 points. russell 2000 down. i don't think we're positive for the year anymore. we're down seven points on the russell 2000. "after the bell" starts right now. dierdre: we do want to get you to today's market action. airy landesman, platinum market, looking for 15% correction of the markets. bob iaccino from the pits of cme. bob, looks like we're closing below this 2,000 level. what do you see? >> i don't care that much about the 2000 level to be honest. round numbers are important but they're psychological more than

anything. what i care about you have a resilient market much the market dipped, putin upping the ante a little bit in the ukraine. the market seemed to shrug it off. i know we didn't close green today. when you look at actual chart and price action, buyers of this dip what we're looking for and what we're seeing. adam: are we seeing anything you didn't expect? long weekend you would see people selling off? >> yeah. i expect we'll see that tomorrow. i agree today's performance was actually pretty impressive given awe the noise going on. i don't know what will crack this market. i think something is. and that's why i'm expecting a correction over the next couple months. dierdre: while speaking of correction, we want to bring in mark newton of the he is with greywolf execution partners. he is chief technical analyst. mark, what are the market signs telling you? >> one day left to go heading into seasonally bearish month of the year, down 3 1/2% for august.

really difficult to think that the market will head down right away based on trend. the market is running on fumes. you're starting to see things getting very overbought at least in the short run and that's a concern. we need more signs of deterioration, particularly this things like credit spread deterioration, small caps, really things that led us down a few months ago to have to fall before the market can pullback. i think the market can continue higher in the near term to 2020 or 30. people think the market is insulated to political events t might lead to a slowdown in growth eventually that could hurt us based on what it does for europe. adam: slowdown in growth, uri, i want to pick up on that. remind everybody we're awaiting president obama who so supposed to address issues causing volatility. you're pretty out there with 15% correction by end of october.

we have countless guest who is say no way and market is going up, up and up. that almost sound irrational. is it? >> i think eventually markets reflect fair value. i think we're at fairly high multiples right now, particularly given it will be very hard for companies to actually give earnings first quarter and fourth quarter of the year. market seems to be ignore russia. given everything going on in the world, whether it is there, little things with china and especially middle east with is, i don't see this market discount anything geopolitical risk at all. there is certainly the chance over next couple months that something really major happens. dierdre: mark, i know you're looking at very specific metrics but i'm looking at headlines that are crossing. perceived safe havens are getting support. gold trading higher. how does that change calculation

where we go from here? >> one of the interest things we saw commodities stablized and higher next couple days. that is positive with things like energy and materials. when you look at gold, silver, palladium, all these started to move higher just in last couple days, along with things like crude oil. my thinking in the next month we should see better performance from commodities than stocks. we should see more signs of stocks down r turning down until we make any sort of bearish forecast that think any external stocks will lead stocks lower. it hasn't been proven. wee haven't seen it. stocks are pretty resilient. adam: mark, i imagine you're good play in etfs, where would you put your money down expecting a pullback that it isn't here yet. >> xlv or gld to take advantage of some of the metals. if you want to short some of the major indices i think it is really early. if anything small caps continue

to underperform and so, the iwm, or russell 2000 is one that you could bet against if you thought the market was going to pull back. i think really pullbacks would prove minimal between september and october. heading into the last few months of the year we know it is seasonally quite positive. given the fact we've seen weakness i think the bigger correction will be postponed until next year. we should see a 5 to 10% correction but we haven't seen any evidence of that so far. dierdre: uri, you spoke about being concerned about the way geopolitical effects are affecting market. you're also signaling that the fed beginning to raise at least in theory at some point this year will also be a headwind for the market but isn't that already priced in. >> yes, so i think the fed has done a good job of signaling where they're going. it will not be a complete surprise, but what i find is, that sometimes when the event happens, even if you think you know what it is, it can still be a shock to the system, particularly if that is followed

up i would immediately by disappointing corporate earnings or weaker economic data. adam: bob, why are people buying sovereign debt. why are they buying u.s. treasurys if there is degree of optimism with the s&p predicted going higher by a lot of our guests? >> i think what you're seeing institutionally, i really think it is the retail buyer is driving the stock market the last couple months. i think institutions have been stepping away. they're just looking for things other than u.s. equities. i think their flows are negative out of the equity market. i do kind of belief that retail investors kind of last sucker in right now. and they're sort of picking off those positions and i think, you're going to see a flight to quality leave equities and go into things like gold, some of the commodities, et cetera. >> adam, look at fixed income the fact that treasurys are yielding almost double, if not more than double with bunds. safe haven the u.s. is best house in potentially bad neighborhood when you look

globally. what happened with deterioration of growth in europe. everybody is flocking treasurys right now. it is tough. the bond market doesn't believe fed funds rates need to go up. that is the thing. yields continue to drop. starting to get downright bullish with regard to treasurys. adam: get bob in on the discussion, bob iaccino. we heard people make the wrong expectation on bond for almost two years now. >> right. >> yeah i think what is happening with that, the federal reserve here in the u.s. was going to have pressure to raise rates quicker than they wanted to. they're literally getting a goldilocks scenario with what is going on rest of the world. i think recession in e.u. and if is prolong and japan and what seems to be happening in china will affect corporate earnings but not until late q1, q2. the u.s. still wind up the place to put money both in equities and pressure. there will be pressure from analysts like myself, that will

prove me wrong and that the fed will be in good position to do that. adam: we'll have the president speaking in literally a minute. we take a small picture of the briefing room we should be expecting this to begin soon. will his statements today have any kind of volatile impact that would drive markets in after-hours trading dramatically? >> i don't believe so. i don't think the administration is into making this a sort of a rush into anything that they don't want to do. i don't think this particular administration will cause anything to upset the market because he will not do anything that shocking. dierdre: bob, i heard what you said about treasurys, still seeing some bids, still seeing some support as people like to call you as sovereign, still the cleanest dirty shirt in the closet, what kind range do you think is possible? >> well i was one of the people at beginning of the year saying it would be 2.57 to 3%. clearly wrong. i think 250 is the pain point. i don't know we see it givennen what is going on, those

geopolitical hot spots included. adam: uri, do you think what the president will say in few minutes will bring about your correction in the october no. >> absolutely not. i point r don't he will roil the markets and frankly i don't think anybody cares what he has to say that. >> is impressive. we hear people say things are priced in. disregard what the president is saying. in fact let's listen. >> i will take a few questions before the long labor day weekend. first beginning with the number one thing most americans care about, the economy. this morning we found out that our economy actually grew at a stronger clip in the second quarter than we originally thought. companies are investing, consumers are spending. over the past four 1/2 years our businesses have now created nearly 10 million new jobs. so there are reasons to feel good about the direction we're headed, but, as everybody knows there is a lot more we should be doing to make sure that all americans benefit from the progress that we've made and i'm going to be pushing congress

hard on this when they return next week. second, in iraq, our dedicated pilots and crews continue to carry out the targeted strikes that i authorized to protect americans there and to address the humanitarian situation on the ground. as commander-in-chief, i will always do what is necessary to protect the american people, and defend against evolving threats to our homeland. because of our strikes, the terrorists of isil are losing arms and equipment. in some areas iraqi government and kurdish forces have begun to push them back and we continue to be proud and grateful to our extraordinary personnel serving in this mission. now isil poses immediate threat to iraq and people in the region. that is why our military action in iraq has to be part of a broader comprehensive strategy to protect our people and to support our partners who are taking the fight to isil. and that starts with iraq's

leaders, building on the progress that they made so far and, forming an inclusive government that will unite their country and strengthen their security forces to confront isil. any successful strategy also needs strong regional partners. i'm encouraged so far that countries in the region, countries that don't always agree on many things, increasingly recognize the primacy of the threat that isil poses to all of them. and i have asked secretary kerry to travel to the region to continue to build the coalition that is needed to meet this threat. as i have said, rooting out a cancer like isil will not be quick. or easy, but i'm confident that we can and we willing working closely with our allies and our partners. far apart i directed secretary hagel and joint chiefs of staff to prepare a range of options. i will be meeting with my national security council ben this evening as we continue to develop that strategy. i've been consulting with members congress and i will continue to do so in the days

ahead. finally i just spoke with chancellor merkel of germany on the situation in ukraine. we agree, if there was ever any doubt, that russia is responsible for the violence in eastern ukraine. the violence is encouraged by russia. the separatists are trained by russia. they are armed by russia. they are funded by russia. russia has deliberately and repeatedly violated the sovereignty and territorial integrity of ukraine, and the new images of russian forces inside ukraine make that plain for the world to see. this comes as ukrainian forces are making progress against the separatist it is. now as a result, of the actions russia has already taken and major sanctions we've imposed with our european and international partners, russia is already more isolated since the end of the wold war. capital is clean.

investors are staying out. his economy is in decline. this ongoing russian incursion into ukraine will only bring more costs and consequences for russia. next week i will be in europe to coordinate with our closest allies and partners. estonia i will reaffirm our unwaiverring commitment to the defense of our nato allies. much at the nato summit in the united kingdom we'll focus on additional steps we can take to insure the alignance remains prepared for any challenge. our meeting of nato-ukraine commission will be another opportunity for alliance to continue partnership with ukraine. i look forward to reaffirming unwaiverring commitment to the united states and its people when i welcome president poroshenko to the white house next month. so with that, i will take a few questions. i am going to start with somebody who, who i guess is now a big cheese. he has moved on but i understand there is going to be his last chance to ask me a question in the press room, so i want to

congratulate chuck todd and give him first dibs. >> i am glad you said in the press room. let me start with syria, the decision that you have to make between, first of all, is it a if or when situation about going after isil in syria? can we defeat isil or isis without going into syria? how do you you prioritize that assad has lost legitimacy, defeating isis could help assad keep power? talk about, how you prioritize those two pieces of your foreign policy. >> first of all i want to make sure everybody's clear on what we're doing now because it is limited. our focus right now is to protect american personnel on the ground in iraq. to protect our embassy, to protect our consulates. to make sure that critical infrastructure, that could

adversely affect our personnel is protected. where we see an opportunity that, allows us with very modest risk to help the humanitarian situation there as we did, in sinjar mountain, we will take those opportunities. after after having consulted with congress. our core priority to make sure our folks are safe and to do an effective assessment of iraqi and kurdish capabilities. as i said, think in the last press conference, in order for to us be successful we have to have an iraqi government that unified and inclusive. so, we are continuing to push them to get that job done. as soon as we have an iraqi government in place, the likelihood of the iraqi security forces being more effective in taking the fight to isil significantly increases.

and the options that i'm asking for, from the joint chiefs, focuses primarily on making sure that isil is not overrunning iraq. what is true though, is that the violence that has been taking place in syria, has obviously given isil a safe haven there, in ungoverned spaces. and, in order for to us to degrade isil over the long term we're going to have to build a regional strategy. now we're not going to do that alone. we'll have to do that with other partners, particularly sunni partners because part of the goal here is to make sure that sunnis both in syria and in iraq feel as if have got an investment in a government that actually functions, a government that can protect them. a government that makes sure

their families are safe from the barbaric acts we've seen in isil. and right now those structures are not in place and that's why the issue with respect to syria is not simply a military issue, it is also a political issue. it is also an issue that involves all the sunni states in the region and sunni leadership recognizing that this cancer that has developed is one that they have to be just as invested in defeating as we are. and so to cut to the chase in terms of what may be your specific concerns, chuck, my priority at this point is to make sure that the gains that isil made in iraq are rolled back and that iraq have the opportunity to govern itself effectively and secure itself. but when we look at a broader

strategy consistent what he said at west point, consistent what i said at national defense college, clearly isil has come to represent the very worst elements in the region that we have to deal with collectively. and, that is going to be a long-term project. it is going to require us to stablize syria in some fashion and stablize syria in some fashion, means we have to get moderate sunnis who are able to govern and, offer a real alternative rand competition to what isil has been doing in some of these spaces. now last point with respect to assad. it is not just my opinion. it would be international opinion that assad lost legitimacy in terms of dropping barrel bombs on innocent families and skilling tens of thousands of people.

and right now what we're seeing is areas of isil iraq is occupying, are not controlled by assad anyway. and frankly assad doesn't seem to have capability or reach to get into those areas. i don't think there is situation where we have to choose assad or kinds of people who carry on the incredible violence we've been seeing there. we will continue to support a moderate opposition inside of syria, in part because we have to give people inside of syria a choice other than isil or assad. and, i don't see any scenario in which assad somehow is able to bring peace and stability to a region that is majority sunni, and, has not so far, you know,

shown any willingness to share power with them or in any kind of a significant way deal with the longstanding grievances that they have there. >> congress's approval to go into syria? >> i have consulted with congress throughout this process. i am confident that as commander-in-chief i have the authorities to engage in the acts that we are conducting currently. and as our strategy develops we will continue to consult with congress and i think it will be important for congress to weigh in or that our consultations with congress continue to develop so that the american people are part of the debate. but i don't want to put the cart before the horse. we don't have a strategy yet. i think, what i've seen in some of the news reports suggests that folks are getting a little further ahead of where we're at

than we currently are. and i think that's not just my assessment but the assessment of our military as well. we need to make sure we've got clear plans that we're developing them, at that point, i will consult with congress and make sure that their voices are heard. but there is no point in me asking for action on the part of congress before i know exactly what it is going to be required for to us get the job done. all right? colleen mccain nelson. >> do you consider today's escalation in ukraine an invasion? when you talk about additional costs to russia, are you ready at this point to impose further economic sanctions or are you considering other responses that go beyond sanctions? >> i consider the actions that we've seen in the last week a continuation of what has been taking place for months now.

as i said in my opening statement, there is no doubt this is not a homegrown, indigenous up rising in eastern ukraine. the separatists are backed, trained, armed, financed, by russia. throughout this process we've seen deep russian involvement in everything that they have done. i think in part because of the progress that you've seen bit ukrainians around donetsk and louhnts, russia determined that it had to be a little more overt in what it had already been doing but it is not really a shift. what we have seen though is that president putin and russia repeatedly passed by potential off-ramps to resolve this

diplomatically. and, so, in our consultations with the, our european allies and partners, my expectation is that we will take additional steps primarily because we have not seen any meaningful action on the part of russia to try to resolve this in diplomatic fashion and, i think that the sanctions that we've already applied, have been effective. our intelligence shows that the russians know that it has been effective even though it may have not appeared on russian television. i think there are ways for us to deepen or expand the scope of some of that work. ultimately what is important to recognize the degree to which russian decision-making is isolating russia. you know, they're doing this to themselves.

what i am encouraged by the degree which our european partners recognize even though they're bearing a cost in implementing these sanctions, they understand that a broader principle is at stake. and. i look forward to the consultations that we have when i see them next week. okay? sikh miller. >> thank you, mr. president. >> carry on. >> last week you said they could receive or not -- when president acts in support of congress. response to chuck's question you don't have strategy yet. we consider that going forward but why did you not go to congress before the current round of strikes in iraq? do you not believe that is the case anymore, what you said last year? throughout your career you also said that, raised concerns with the extension of -- expansion of powers with the executive. are you concerned that your recent actions unilaterally have cut against that? >> no, and here's why.

it is not just part of my responsibility but it is a sacred duty for me as commander-in-chiefct the american people. that requires me to facts based on information i receive if an embassy of ours or consulate of ours is being threatened. the decisions i made were base very concrete assessments that erbil might be overrun in the kurdish region and our consulate could be in danger. i can't afford to wait in order to make sure those folks are protected. but, throughout this process we've consulted closely with congress and, the feedback i've gotten, from congress is, is that we're doing the right thing

now. as we go forward, as i described to chuck, and look at a broader regional strategy with international coalition and partners, to systematically degrade isil's capacity to engage in the terrible violence and disruptions that they have been engaging in, not just in syria, not just in iraq, but potentially elsewhere if we don't nip this at the bud then those consultations with congress for something that is longer term become more relevant. my intention that con has to have buy h in as representatives of american people and i american people have to know what that strategy is. as i said to chuck, i don't want to put the cart before the horse. in some of the media reports the suggestion is seeps to have been we're about to go full-scale on

an elaborate strategy for defeating isil. the suggestion i think has been that we'll start moving forward imminently and somehow congress still out of town will be left in the dark. that is not what is going to happen. we'll continue to focus on protecting the american people. we're going to continue where we can to engage in the sort of human humidity humidity acts that -- humanitarian acts that saved so many folks trapped on a mountain. we'll work politically an diplomatically with folks in the region and we're going to cobble together the kind of coalition we need for a long-term strategy as soon as we are able to fit together, the military, political, and economic components of that strategy. there will be military aspect to that. it will be important for congress to know what that is, in part because, it may cost

money. okay? i will take, i will just take a couple more, yeah. >> mr. president, do you have a regret not moving on isis earlier? reports indicate that most of the weapons they got prior to the occupation of mosul? iraqi president said that their forces are no position to stand up to isis. what do you think of forming a new government will change the situation? >> well, once isil got into mosul that posed a big problem. there is no doubt they were able to capture weapons and resources they used to finance additional operations. and, at that stage, we immediately contacted the iraqi government. keep in mind we had been in communications with the iraqi government for more than a year indicating that we saw significant problems in the

sunni areas. prime minister maliki was not as responsive perhaps as we would have liked to some underlying political grievances that existed at the time. there is no doubt that in order for iraq's security forces to be successful, they are going to need help. they will need help from us. they will need help from our international partners. of they're going to need additional training, they're going to need additional equipment. we'll be prepared to offer that support. there may be a role for an international coalition providing additional air support for their operations but the reason it is so important that an iraqi government be in place, this is not simply a military problem. the problem we have had consistently is, a sunni population that feels alienated from baghdad and does not feel

invested. in what is happening. and does not feel as if that anybody is looking out for them. if we can get a government in place that provides sunnis some hope that a national government serves their interests, if they, if they can regain some confidence and trust that it will follow through on commitments that were made way back in 2006 and 2007 and 2008, and earlier, about, how you arrive for example, debaathification laws and give people opportunities so they're not locked out of government positions, if those things are followed through on and we're able to combine it with a sound military strategy, then i think we can be successful. if we can't, then the idea that the united states or any outside

power would perpetually defeat isis is unrealistic. as i said before, i think i said it in the previous press conference, our military is the best in the world. we can route isis on the ground and keep lid on things temporarily. as soon as we leave the same problems come back again. so we've got to, we've got to make sure that iraqis understand in the end they're going to be responsible for their own security. part of that will be the capacity for them to make compromises. the it also means states in the region stop being ambivalent about these extremist groups. i mean the truth is that we have had state actors who ad times have thought that the way to advance their interests is,

well, financing some of these groups as proxies is not such a bad strategy. and part of our message to the entire region is, this should be a wake-up call to sunni, to shia, to everybody, that a group like isis is beyond the pale. that they have no vision or ideology i don't understand violence and chaos. and the slaughter of innocent people. and, as a consequence, we've got to all join together, even if we have differences on a range of political issues, to make sure that they're rooted out. okay? last question. >> mr. president? >> last question. >> mr. president, despite all of the actions the west has taken to get russia to pull back from ukraine, russia seems intent on taking one step after another, convoys, transports with arms,

at what point do sanctions no longer work? what you envisage possibility of necessity of military action to get russia to pull back from ukraine? >> we are not taking military action to solve the ukrainian problem. what we're doing is to mobilize the international community to apply pressure on russia. but, but i think it is very important to recognize that a military solution to this problem is not going to be forthcoming. the fact that russia has taken these actions in violation of the sovereignty and territorial integrity of the ukrainians has resulted, i believe in weakening of russia, not a strengthening russia. that may not be apparent

immediately by you think it will become increasingly apparent. what it has done is isolated russia from its trading partners, its commercial partners, international business. in ways that i think will be very difficult to recover from. we will continue to stand firm with our allies and partners that what is happen something wrong, that there is a solution that allows ukraine and russia to live peacefully but, it is not in the cards for us to see a military confrontation between russia and the united states in this region. keep in mind, however, that i'm about to go to a nato conference. ukraine is not a member nato. but a number of those states that are close by are. we take our article v commitments to defend each other very seriously, that includes the smallest nato member as well

as the largest nato member. part of the reason i think this nato meeting is going to be so important is to refocus the attention on the critical function that nato plays, to make sure that every country is contributing in order to deliver on the promise of our article v assurances. part the reason i will go to estonia, to let the estonians know we mean we say with respect to our treaty obligations. we don't have the treaty obligations with ukraine. we do however, stand, shoulder to shoulder with them and we're doing not just a lot of work diplomatically but also financially to make sure they have the best chance dealing with what is admittedly a difficult situation. >> what about sending arms to ukrainians? thank you, mr. president. dierdre: that is president obama there, addressing all kind of issues. everything from the tension in

ukraine and russia to isis to even the u.s. economy. our colleague, rich edson, listening in as well. we'll join with him in d.c. meanwhile that last question -- we'll go back to the president. >> the fact that our immigration system is broken and needs to be fixed. my preference continues to be that congress act. i don't think anybody thinks that congress will act in the short term but hope springs eternal that after the midterm elections they may act. in the meantime what i have asked jeh johnson to do is look at what kinds of executive authorities we have in order to make the system work better and, you know, we have had a lot of stakeholder discussions. that set of proposals is being worked up and the one thing that i think has happened was the issue with unaccompanied children that got so much

attention a couple of months back. and, you know, part of the reason that was important was not because that represented a huge, unprecedented surge in overall immigration at the border but i do think that it changed the perception of the american people about what's happening at the borders. and so, one of the things we have had to do is to work through systematically to make sure that that specific problem in a fairly, defined area of the border, that we're starting to deal with that in a serious way. and, the good news is we have started to make some progress. what we've seen so far is that that throughout the summer, number of apprehensions are decreasing. maybe that is counterintuitive. but that means fewer folks are coming across. the number of apprehensions in august are down from july and

lower than they were august of last year. apprehensions in july, were after of half a of what they were in june. we're seeing significant downward trend in terms of these unaccompanied children. what that i think, allows to us do is to make sure that those kids being taken care of properly with due process. at the same time, it has allowed us to engage in broader conversation what we need to get more resources down at the border. it would have been helped along if congress voted for the supplemental that i asked for. they did not. that means we have to make administrative choices an executive choicings for example, getting more immigration judges down there. so that has kept us busy but has not stopped looking more prodly how we get a smarter immigration system in place whale we wait for congress to act.

it continues to be my belief if i can't see congressional action i need to do at least what i can in order to make the system work better. but, you know, some of these things do affect timelines and we're just going to be working through systematically as possible in order to get this done. but have no doubt, in the absence ever congressional action, i'm going to do what i can to make sure the system works better. >> will you announce -- >> thank you, guys. dierdre: okay, so that is president obama now leaving the podium. he had actually wrapped earlier and fielded one last question there on immigration reform. our colleague, rich edson, has also been listening in. we're going back to d.c. so, rich, he really covered a lot of topics there. >> he did, especially the two international topics waiting for answers on and we're still going to wait for answers. what next steps when it comes to isis in iraq and syria and what about next steps when it comes to ukraine. first on isis, president obama

read suggestions in the media that perhaps united states was about to launch a broad-based attack of what it has done so far. he said that is not true. he still deliberating with national security team and heading there right now and asked defense secretary chuck hagel to give him options. he said no decisions made there. when it comes to ukraine, president obama calling this recent incursion that is backed, armed, financed and trained by russia. he says that they are not taking military action, the united states. he will be talking with angela merkel and others at the nato conference next week. possibly more sanctions there. but the president essentially ruling out any type of military action. he beat up on russia a little bit but as far as concrete steps on either front, the president says they're still developing. back to you. dierdre: rich, thank you very much. rich edson joining us there from d.c. as rich just said, president obama did speak about these two hot spots across the world but also made it very clear the u.s. will not act alone. at least i heard very sim thing rich heard. he wants cooperation in both

spots. adam: a military option in ukraine is off the table. dierdre: although he did say i'm going to be going to the nato meeting. so that will certainly be discussed. adam: we'll go to commercial break. we'll regroup and when we come back we'll talk about latest numbers on housing. we'll totally shift gears. is it good news or might you want to be prepared for something. we'll be right back.

3rd and 3. 58 seconds on the clock, what am i thinking about? foreign markets. asian debt that recognizes the shift in the global economy. you know, the kind that capitalizes on diversity across the credit spectrum and gets exposure to frontier and emerging markets. if you convert 4-quarter p/e of the s&p 500, its yield is doing a lot better... if you've had to become your own investment expert, maybe it's time for bny mellon, a different kind of wealth manager ...and black swans are unpredictable. adam: today's rebound pending home sales data shows the

housing market is picking up steam, but the recovery is uneven around the country. what accounts for the regional differences? how do we get the country as a whole back on its feet? joining us now, is jed coco, trulia chief economist and vice president of analytics. thank you for being here. the one question i think everyone can relate to, are we at another housing bubble? because you have some areas where there is just incredible increases in sales and prices and in other areas it is falling? >> actually we're not in housing bubble. when you look at housing prices are today, compared to fundamentals like incomes and rents, home prices look still 3% undervalued. that is very different from last decade's bubble, home prices got high as 40% overvalued. there are some prices of the country where they do look high particularly compared to fundamentals particularly in southern california, they look 15% overvalued now. adam: people there are paying cash. at least that is the story you keep hearing.

bubble would not be a problem. another factor that would not create a bubble that inventory is up, correct? >> inventory is increasing. that is good for people afraid of a bubble. more ininventory should put brakes on some price increases. places where we'rewe're seeing biggest price increases are not as extremist they used to be. there is no market in the country seeing price gains more than 15% year-over-year. that is the first time we haven't seen markets with out of control prices. adam: existing home prices in july up 3.3%. you're not consistent about august are you? >> pending home sales index went up month over month. it is pointing to 1% increase in committing month over month sales next month that. will not be enough for existing home sales positive year-over-year. a lot of existing home sales have been distressed sales. foreclosures and short sales. and those are now fading out.

as foreclosure crisis gets more and more behind us. that holds back the overall sales volumes but a healthier mix of sales as we move toward more conventional sales. adam: want to shift from single family homes to apartments. we're building apartments in levels like that we haven't seen a long time? we're seeing a huge boom in apartment construction. they're betting onioning people moving out of their parents homes and renting first before they buy. we're starting to see that. the data show that young people are starting to move out of their parents basements. that is good news for construction. because those young people are a key part of some of that pent-up demand for housing. that built up during the recession. now they're renting first before they buy. that is why we're seeing apartment construction booming but single family is far below normal levels. adam: in major sis say san francisco, chicago, new york, are those people coming into the housing market

already priced out? are they ever going to be able to buy? >> in some of these cities, house something very expensive. places like san francisco an new york, affordability is always a problem. these are places that have not only strong demand, but they typically very tight supply and place like new york and san francisco. it is very difficult to build new housing compared to places like houston or phoenix or atlanta. places that build more housing stay more affordable. adam: we'll get the jobs report in september, looking at august. do you think it is going to indicate the kind of numbers we need to see to that people can get money that their pockets and take out a mortgage to buy a house? >> most important number for housing in the jobs report is what is happening to employment for 25 to 34-year-olds. that is the age group when people start to move out of their parents homes and decide whether to rent or buy. their jobs picture still looks discouraging. they are much less likely to be employed than they were before the recession. in fact their employment looks closer to the worst of the

recession than to normal less. so they still have a ways to recover. adam: jed, we appreciate you being here. be well. >> thanks, adam. dierdre: well, it may be the ultimate sales pitch. a video showing what happened when a vacuum cleaner salesperson showed up on a subway platform has gone viral and it is not just about what he does with the machine. adam: uber is one of champions of the sharing economy but its taxi app has run into a wall of opposition in many cities. coming up, one place where uber score ad major victory. ♪ wondering what that is?

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dierdre: uber faced resistance in numerous u.s. cities but this beak the car-sharing service had something to celebrate. adam: jeff flock joins with us details from chicago. jeff? >> interesting in chicago, always the political landscape here. that may be a little bit about what this is about. indeed, the taxi lobby is huge here. and a lot of dim democratic legislators were pushing this, what is called an anti-uber

bill. at least by a lot of people here in chicago. it essentially would have place ad lost restrictions not only on uber but a lot of ride sharing services. force them to get chauffeur license and carry $350,000 in liability insurance. uber said that would put them out of business. even though the legislature passed all this stuff the democratic governor threw a mon question wrench it all. governor pat quinn was vetoing the anti-uber legislation, to rush into a whole knew system of state regulations would stifle innovation and disservice to consumers. sounds like a free marketer out there. what is motivating that? some would suggest that it is his re-election bid. the governor in the latest poll down 13 points to his republican challenger, who is a big booster of uber, guy by the name of bruce rounder, a republican, harvard mba and getting a lot of

traction here. he called on the governor to veto the bill and the governor went along with it. so i guess republicans and democrats getting along here in illinois for at least today. dierdre: that noteworthy, certainly. we put up map where uber is and all the places where it is facing red tape. in boston, all the taxis were literally out in the streets. it happened overseas in london. adam: uber is great service, it is expensive. taxis still seem to be cheaper s that the case in chicago. >> sometimes it is cheapers and sometimes it is not. cabbies have restrictions on what they charge and uber unfortunately doesn't. this bill would have limited on what uber could charge but that didn't make it. on surge days, that pricing can be expense sieve. dierdre: thanks, jeff flocks from windy city. adam: da bears.

i had is a video that has everybody's attention. why would anybody eat pasta off a subway platform? we'll tell you next. dierdre: hello kitty spawn ad mult did i billion dollar empire but turns out the character may may not was it seems. a startling revelation for anybody that grew up with hello kitty. we'll be right back. many of my patients still clean their dentures with toothpaste. but they have to use special care

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adam: time to go off the desks. all about the sales pitch a brand manager at business sell canada, goes beyond to. the manager called ravi, uses bristle symphony to clean a space. spills bowl of pasta on platform. tuck as napkin in the collar and starts eating it horrified commuters look on. robbie finishes his meal and takes a bit of bread to get the

sauce off the ground. bissel claims the symphony kills 99% of bacteria. making it safe to eat. they do that in new york, that the bacteria will fight back. >> that is insane. he is courageous guy. i don't care what one company says. hello kitty fans behind the popular franchise revealing hello kitty is not a cat. the company says she is friend a little girl from a pert pet all, she is perpetual third-grader, from outside of london. her name is kitty white. she lives with her parents george and mary and her twin sister meme. i'm honestly blown away that hello kitty is not a cat. you know how much money i spent on stickers, hello kitty look books when i was a kid. adam: international incident coming our way. >> that's right. adam: the number one thing to watch other than everybody fleeing town, final reading of

august consumer confidence -- consumer september meant. it will rise to 80.5. after it well to a low last month. >> we'll get things over to gerri willis with "the willis report." i know you have a little bit more more about a serious topic, gerri, this outrage brewing as kids bo back to school. >> deirdre, adam, that's right, thanks for that. it is the first week of school and boy, are students unhappy about it. especially the michelle obama mandated lunches we'll talk about that. also coming up in today on the show, is your money safe? we'll have the latest as the fbi investigates that massive state-sponsored cyberattack on the nation's banks. also, as college football season gets underway, we'll look at new report that says students won't be on the sidelines. hoping to keep your parent in their home instead of senior citizen. thanks to new technology, we'll tell you how to do that. "the willis report," where consumers