long, very quickly? [closing bell ringing] >> very accommodative fed. keeps on going until it doesn't basically. >> i guess so. the market likes it. it has moderated quite a bit. you saw that initial jump, quite to the upside. you can see you will the indices are up. they were much better earlier on we have busy hour for you. "after the bell" starts right now. david: we'll get right to today's market action. of course it is fed day. the fed had huge influence on what the markets did. we have brian boil, from boyle capital.

cautiously optimistic as stock valuations remain stressed. mark travis from intrepid capital managements that lee picks for investors. todd horowitz from the pits of cme. todd you and i share a concern, a great concern about what janet yellen is doing about the fact that middle class has not been keeping up with the upper class in terms of gaining on the stock market because of what she has been doing. however, you tell me that you're long on the markets, is that right? >> no, i, as i said last week, hi, david. i said last week, my long term retirement accounts are long because i don't play with those. those are invested money. my trading accounts are short. david: i see. >> i want to be short here. i think what janet yellen doing here is insanity. my question is, is, if the economy is doing so well and growth is coming back and everything is great, why can't they raise interest rates and bring the middle class in. last week you asked me if i

thought we were in recession. i don't think the middle class ever came out of recession. it has been ever since. i do a lost patronizing of small business. everyone of them tells me how much trouble and how much struggles they have because they have no chance to get money from a bank because the banks will not provide liquidity. because although the money was supposed to trickle down through this whole system and this fed, phony money ponzi scheme, the money is stopping 80% down and letting ultrawealthy enjoy, and banks enjoy and central banks around the world whoo i will middle class continue to struggle. they can not do it. david: todd, i want to let a fed economist into the conversation. ward mccarthy, he is a former fed economist. i'm surprised ward, the fed accommodated -- moderated to what they have. she is suggesting these policies might go on for a decade. take a listen. >> even after employment and

inflation are near mandate consistent levels, economic conditions may, for some time, warrant keeping the target federal fund rate below levels that the committee views as normal in the longer run. david: were you surprised? i mean, it is all a question now of how long it is before the next rate rise, but she is looking into the future, she can't even tell, beyond a decade where it is pogue to be going. were you surprised how liberal she was, open she was on that point? >> oh, not at all. that was a quote from the fed policy statement and it has been in the fed policy statement since march. so that is really been the fed's point of view for six months now. and i think it is important to differentiate between when the fed might start raising rates and how fast they're going to raise rates. so, my opinion, the fed will keep rates lower for a longer period of time. probably not raise them until the second half of 2015.

where i differ from, probably the fed and a lot of other people i think that once they start raising rates, they will have to do it faster rather than slower. david: all right. mark, let me play that other sound bite which she even goes i think beyond where a lot of people thought she would. that led to the market spiking up. it has moderated since but let's play that sound bite. >> to get back to levels of reserve balances that we had before the crisis, it could take to the end of the decade to achieve those levels. david: till the end of the decade. do you think it will take that long, mark? >> i don't think anybody has any idea, particularly janet yellen. you know, i'm, like the first speaker from the cme, you know, if the patient, not working for patient, put leeches on them and bleed them. real average incomes are hardly back to where they were in '08, '09, so let's do more of the

same. if you have a big house or big financial portfolio you've done pretty well. everybody else not so much. david: brian, what we're looking at, keep that graph up if you can, what we're looking at fed fund rate and inflation. the yellow line is the fed fund rate. it is below inflation. when that has happened, brian, we have not seen prosperity in this country. every other period of prosperity whether during the '80s or during the '90s as you can see on this graph, you can get a little bit parking your money relying on interest rates. not today. >> well i mean the federal reserve is begging people to take risks. our guest alluded to the fact that the economy is still struggling, particularly for the middle class. the federal reserve policies have been intended to inflate assets. we see that. which is why we continue to be optimistic about the overall market. we see the asset inflation continuing. it has been all about jobs for a long time. what the federal reserve said today doesn't change that at

all. we continue to see easy money for some time. david: brian, are you concerned about the fact that right now inflation is, as low as inflation is, it is still hovering above the feds fund rate? the types that happened in the past 30 years have not been times of prosperity? >> well, i think you're absolutely right. i think alluding to what the previous guest said, there is something broken. and, it looks like the labor markets right now have things that are broken. and can't be addressed by monetary policy, but the federal reserve continues to attempt that. we don't see necessarily that her policies will continue to work. we could be stuck in this environment for some time. david: well, ward, the real question here is whether the fed is exacerbating the problem. what do you think? >> oh, i don't think they're exacerbating the problem. what i think they're attempting to to do is allow the recovery to reach the middle class. that is why janet yellen who keeps talking about people not

being able to get back into the labor market. david: ward, let me stop you there for a second is. the middle class relies on savings much more than they do on classic investments in the stock market. people are losing money through inflation if they save money right now because we have essentially zero interest rates. as long as that happens, how is the middle class going to benefit? >> well the only way the middle class would benefit would be, would be through continued job creation. and you're absolutely right, these low interest rates are penalizing savers. it is one of the prior people on this show said, you know, encouraging people to take risks. so what the fed is hoping is that people who have not been able to get back into the labor market can, mostly middle class folks, by keeping rates low will encourage faster job growth, faster economy and eventually they will start to see their life-styles improve. david: mark, the middle class are not people that invest in the stock market to any degree. to the degree they did in the past, they were burned first in

2000 and then 2008. they're not likely to get back in. they're stuck with their savings losing money because of inflation. >> that is true. david: hold on, mark, go ahead. >> well, david, look at the labor participation rate. it es down 3 or 4% from a long-term normal of probably 66 or 67. it is 63 now. and, you know we've given them this toxic brew of keynesian economics which is, try to spend and then it will trickle down and we'll all grow. the reality of it is, when our savings rate is higher, gdp growth is higher. and it is not working. but you know, like i said earlier, if the patient is not revived go ahead bleed them some more and see how they do. david: todd, so far all of this, everything we've been talking about, hasn't really affected earnings which have been terrific. that is one reason, that is a healthy reason why the market has been doing so well. how long before the middle class malaise really impacts on what we see in the earnings reports?

>> well, i think what you're seeing here is because we, corporations are accumulating cash. they're not putting it back into research and development and into hiring people. but the money, as the economist said, it noise the flowing down. it is supposed to but it doesn't flow down because nobody makes it abscessable, the banks key part of the cartel will not provide liquidity to smaller business to allow them to grow. the small businesses are guys that work and drive and shop and do everything in this country that continue to rotate the economy and spend their money because we are a by the month society. when you're not making money hard to spend it by the month. until big corporate america rehires and do more research and start to really grow because we haven't seen real growth by building product and research in quite a while. balance sheets are getting better. at end of the day only because of cheap money. david: you may not like it but at least we have a road plan. janet yellen spelled that out pretty quickly.

brian, ward, thanks very much. todd, we'll see you when the s&p futures close. appreciate it guys. the department of defense set aside $447 million for cybersecurity this year. which stocks could benefit as the pentagon puts this money to work? we have three under the radar security plays coming up. in a fox business exclusive, autonation opening its doors at its new 21 million audi dealership just for us. we'll give you an inside look at audi's next hot rod. it is called the q3. you may have heard about it. we'll talk to the ceo of autonation and president of audi america straight ahead. nfl sponsors are starting to weigh in on the league's responses to the recent scandals but, well talk is cheap. no one actually pulled any money yet. so why say anything at all? is it a mistake of advertisers? we'll hash that out. tell us what you think, is it a mistake for advertisers to

pressure nfl teams or team owners? or is it necessary to appease the consumers? tweet us @fbnatb. your answers coming up. ♪ [ male announcer ] once, there was a man who found a magic seashell. it told him what was happening on the trading floor in real time. ♪ the shell brought him great fame. ♪ but then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their trading platform. ♪ so the magic shell went back to being a...shell. get live squawks right in your trading platform with thinkorswim from td ameritrade.

get live squawks right in your trading platform you can't get any thbetter than that. trains. siemens trains are not your grandparent's technology. they're something that's gonna change the cities we live in today. i find it so fascinating how many people ride this and go to work every single day. i'm one of the lucky guys. i get to play with trains. people say, "wow, we still build that in the united states?" and we say, "yeah, we do!" sfx: ambient park noise, crane engine, music begins. we asked people a question, how much money do you have

in your pocket right now? i have $40, $53, $21, do you think the money in your pocket could make an impact on something as big as your retirement? not a chance. i don't think so. it's hard to imagine how something so small can help with something so big. but if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge sfx: crowd cheering might not seem so big after all. ♪ liz: i came back. i couldn't leave you. david: she's back. liz: i took a spin in the tesla. david: i saw you driving around

there up sixth avenue. it was pretty wild. liz: driving around shares of adobe, driving further into the red after the software maker reported mixed third quarter earnings. david: let's head to nicole petallides on floor of nyse. nicole? >> david, the concern is about some revenue numbers. look at shares. they were down about 4.8%. closing at 67.30 it came under pressure. under pressure all day long. you think of photoshop and think of adobe. of revenue numbers and forecast were weaker than expected. they had cloud sun scribers on the rise. that was a -- subscribers on the rise so that was a good point to the story to 2.18 million. low-hanging fruit, they managed to shift easy customers to the cloud. now they have to get more resistant ones. back to you. liz: anybody coal, thank you. david: s&p futures are closing in 20 seconds literally. let's go to todd horowitz. how are things shaping up

tomorrow, todd? >> looks like softer flows. important thing to watch, breadth, advance declines have been very weak past couple of days. number of new highs and new lows have been weak. there are signs that the market could have trouble coming on. i don't think janet yellen has a plan. the reason they continue to print money because they can't figure out a way out yet. i hope you put it in your garage before you came back to work. liz: put it in there and plugged in. those things are cool. david: he is not giving it away. todd horowitz, thank you my friend. >> new gnat report released today, that hackers broke into u.s. military transportation companies 20 types in a single year. david: the -- times. the government is ramp up spending on cybersecurity. the department of defense allocating half a billion, 447 million to fight the growing threat. who stand to profit? with three under the radar plays, jeff reeves, investorplace.com editor here in new york. good to see you my friend.

first of all i know this is visa and mastercard put out the warnings. i'm surprised american express isn't included there. my impression is they are a lot better at cybersecurity than visa or mastercard. is that a right or wrong impression? into it could be. even if they're better, they're spending a heck of a lot more money and they have a expensive system they put in place. as investor i think opportunity is not just from hacking. remember there is always threats out there that we don't even see. so there is a lot of companies out there really good at this. if we don't see it doesn't mean you can't make money off it. liz: there are a lot of obvious companies and the under the radar names which you have done the digging for us. we want to know why you picked these names, as opportunity, the trade to make the investment and they will return if you own these stocks? >> that's right. there is a lot of chatter in the space. three big reasons i like cybersecurity. one is department of defense numbers you threw out. up over 135% the previous year.

the obvious threat from home depots and targets of the world that have their breaches. beyond that there is buyout premium. cisco bought a company for $3 billion. a tailwind and optimism behind it there. is a lot of room to run there especially for smaller companies to grow into the space. bigger ones like cisco have a way to play cyber security but if you have want a pure play, these three. david: get right to it. palo alto networks. why do you like them. >> patent dispute with juniper resolved. this is smaller company but they have zero debt and they have a bunch of cash on the books. if you room really want to get on the ground floor. it is little volatile but performed nicely year-to-date. if you want small cyber -- david: up 72% year-to-date. >> smaller means more room to run. liz: up past year, up 106%. price-to-earnings ratio is 71 so a little rich. we were at gray lock partners in

silicon valley of the those are scene ture capitalists got this off the ground. they're smart people. they believe in approximately low al toe networks. what specifically do they do that differentiates itself from everyone else in the space? >> palo alto networks has particularly strong earnings. the ceo said they have big contracts they're moving into. this is smaller company. if you make bigger accounts or half a million or half a billion dollars or larger it moves your stock in a hurry. there is growth there but being able to net the big fish lets you climb up the ladder to get to the next level. david: check point software technologies. >> i like check point a lot. they're another one of these companies, you have secular tailwind behind it. check point has one of the better valuations not like knows bleed. david: hasn't gone up that much year-to-date. 9%. >> growth is more modest. it is 17.5, less than nasdaq. if you're worried about a cybersecurity company and buying a top, valuation is much fairer in this. zero debt.

$900 million in cash. if you want more stable and larger company still focused on cybersecurity, there is a good balance of growth but also fair valuation. liz: you have f off rtinet had a very nice move over the next year-to-date. for the net is a big player. fort net. they have a lot of cash on books and zero debt which can't be overstated. this is one of the companies with good earnings and tailwind to its growth over past couple years that. will continue as we go forward with the bigger clients. american express or target or home depot. there is a lot of money to be had. cisco and other players might be a bigger threat. if you want a focused and more volatility, this might be the company. david: american remember, there is personal interaction. call up visa or mastercard, you get recording to send you to somebody else. they deal with you. >> highest satisfaction from

j.d. power and associates. that is for a reason. customers are satisfied. david: jeff, good to see you. liz: we have high satisfaction with you. >> didn't you owe me dinner. david: we have to talk about global cooling. i would bring you a sweater with all the global cooling going on. liz: thank you, jeff. david: nfl may be too big to fail but what about nfl commissioner roger goodell? we'll find out if nfl sponsors should pull their deals after the scandals involving nfl players. liz: apple's smart watch made headlines all over the world but look under the hood and you could find what could be on the brink of an app revolution. we have the teen wunderkind. he is our special guest live. david: 16, he got 20 million bucks. oh, man. two years before the summer olympics in brazile. organizers announced ticket prices. prices may shock the heck out of you. wait until you hear them coming next. ♪

hey, jennar fuzz mike troober munny sling... awwwwww scram! i'm crust mike jubby roll bond chow gonna lean up an kiss bet. peas charty get town down. [laughter] ♪ borf a liver tute face stummy wag ♪ pow pam sha-beeps stella nerf berms. saxa-nay nay? badumps a head. temexiss gurrin. juppa left. fluppa jown!

brone a brood. what? catch up on what everyone's talking about with the x1 entertainment operating system. preloaded with the latest episodes of the top 100 shows. only from xfinity. liz: time for a quick speed read. five stories one minute. fed x-rays rate for ground services. the world's second largest delivery package company he will hike prices 4.5%. buyers of new iphone 6 may have to wait for a while. according to report in "wall street journal" fox con is turning out 140,000 iphone 6 devices every day but the volume not enough to meet preorder demand. starbucks is testing frappuccino mini in houston and denver. it will be 10 ounces in size,

about 30 cents cheaper than the traditional 12-ounce version. ticket prices for rio de janeiro olympics in 2016 have been announced. 7.5 million tickets be issued for the rio games. half of them will be under 30 bucks. david: wow. liz: wealth of world's billionaires rose 12% to 7.3 trillion. 35% of billionaires didn't graduate college. [buzzer] david: wow. liz: that is today's "speed read." david: don't have to go to college to be a billionaire. major corporate sponsors expressing their disapproval of the nfl recent scandals but they have stopped short of pulling their multimillion dollars deals. what should corporate sponsors do when you have such big deals at sec? we have jim andrews, i.e. c senior vice president of content strategy. jim, you've been dealing with these issues for a long time. you have so many sponsors and know both sides of the business. are advertisers going further than they have ever gone before

in terms of dealing with the people they sponsor? >> i think they are. they're getting so much pressure from their consumers to be responsive in these types of situations that they're really stepping up to the plate. david: is it too much though? some people say, you find somebody you like. you stick with them. you don't try to tell then how to do their business? >> they have to walk a very fine line, dave, but i think in this day and age, all of these sponsors are getting tweets, facebook messages, phone calls from their consumers saying, you're a sponsor. what are you going to do about this? so they have to respond. david: by the way they did, the vikings at least responded to the warnings they got from anheuser-busch and others. do you think right now they are still talking, communicating, the owners with the advertisers and tweaking their plans a little bit? >> you know, i would imagine there are lots of back channel conversations between the sponsors and their contacts at

the leagues and at the teams saying hey, you're putting us in a difficult position. we need to know what you're going to do, that you have a plan in place to get past this, because we need reassureses here that this partnership is going to remain valuable to us. david: now, at the same time, you have the players. some players, i don't want to judge anybody until all the evidence is in because so far what we've been hear something just rumor and innuendo, et cetera. it is worth investigating, don't get me wrong on all these cases. certainly that video of rice anyway is pretty damning. however, the players deserve certain rights here, do they not? don't players deserve to know what their teams and what advertisers are talking about vis-a-vis their own careers? >> well, i think that, you know, there are lots of policies within place within the collective bargaining agreement for protect the players rights and certainly the players union, they have already, in the ray rice case said they're going to

appeal this new suspension of the so the players do have a lot of protections built into this situation. david: but, right now, let's take, there is rice. right now, adrian peterson is in a very tenuous position. we don't know the details of these charges of child abuse. we don't know whether they were within the parameters of what is normal or what is acceptable or what is legal. and yet the advertisers and his team are making decisions without him, putting him on the side. should he not be a part of that conversation somehow? >> you know, i guess you could argue that he should be but, at some point you can equate it to, he is an employee. if, if you as an employer or myself have employees that have gotten themselves into trouble, have been arrested or charges have been filed against them, you know, often times an employer will take an intermediate step before an adjudication, before guilty or innocent verdict.

as we know the wheels of justice do turn slowly. david: but he is an employee with a contract. i guess my point, the world has changed dramatically. i'm not sure sop think for the better some things for the worse but things have changed. perhaps contracts have to change. perhaps the agreement between the football team and the basketball team and the player have to change to accommodate the changing world, do they not? >> you know that, it will come up, certainly in the talks between the union and the league and not just in football but the other leagues especially because we are dealing with a new world. we're dealing with a world where almost nothing can hidden, can be taken for granted. david: is it a better world, jim? very quickly. this has to be the last question. do you think it is better or worse? >> i think transparency in most cases is better. i will leave it at that. david: jim andrews ieg senior

vice president of content strategy. your job will change quite a bit over next couple years. thanks for coming in. appreciate it. >> thank you. david: liz? >> david, i don't know if you heard elon musk of tesla compliment audi dealerships last hour. he thinks they're pretty cool. audi opening a brand new $21 million audi dealership. that is a live picture. creating hundreds of jobs and hoping to keep sales streak going strong. it will feature the hot new crossover, the q3. in a fox business exclusive. only we take you there live, show you dealership and show you the potential jobs with automation chairman and ceo and audi america's president. a fox business exclusive. plus nick delosi-a, at age 16, sold his app to yahoo! for reported $30 million. he is partnering with katie couric with a brand new version of news which caught the attention of apple which

features the app on the smart watch promo. our sharp eyed producer saw that. we'll take you to nick live next. ♪ when fixed income experts work with equity experts who work with regional experts who work with portfolio management experts that's when expertise happens. mfs. because there is no expertise without collaboration.

it hurts. you doin'? this is what it can be like to have shingles. a painful blistering rash. if you had chicken pox, the shingles virus is already inside you. as you get older your immune system weakens and it loses its ability to keep the shingles virus in check. i just can't stand seeing him like this. he's in pain. one in three people will get shingles in their lifetime. the shingles rash can last up to 30 days. i wish that there was something i could do to help. some people with shingles will have long term nerve pain

which can last for a few months to a few years. don't wait until someone you love develops shingles. talk to your doctor or pharmacist about your risk. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. a brand new start. your chance to rise and shine. with centurylink as your trusted technology partner, you can do just that. with our visionary cloud infrastructure, global broadband network and custom communications solutions,

your business is more reliable - secure - agile. and with responsive, dedicated support, we help you shine every day of the week. david: yahoo! says its yahoos news digest app is optimized for ipad. it features a sunday news segment with katy couric and set

to be featured on apple's new smart watch. liz: without this 18-year-old the app wouldn't exist. he create and and sold the summly app to them for $30 million or so. this is yahoo! news digest. nick is yahoo! news digest product manager joining us live today. good to see you again, nick. make your pitch to people who have one phone, and not a lot of space on the screen to put you and your app on this front page. what is the case? >> absolutely. so yahoo! news digest won apple design award two months ago. the premise behind the app so inform you of all news efficiently. we do twice a day, once in the morning, one in the morning and one in the evening we send you definitive finite digest. the stories are summed up with tweets, wikipedia information

and maps and doing so we make it fun but also easy to read on a small screen like a phone. david: i get it. i look at it. very interesting stuff. i as former editor i would have editorial questions about it. i would change this and that but it is an incredible summary that you have put together. now the big question is, will it fed on a watch? we had this announcement by apple. they're coming out with the new watch product. the apple watch, whatever they call it. there is, we're showing video of it right now. how the heck do you fit all of that on a watch? >> i mean we're really excited about the form factor of a wearable such as a watch. concept like summization like with our news product lends itself to that form. sake the notion after summary and see what we do with the watch. it is complimentary what you have on the phone. david: can you tell is whether you have started process of shrinking -- a phone is small enough but a watch is like 1/3 the-size. >> we've gone through the idea

yanks process. we don't want to it being redundant what you get on watch identical to iphone or like we launched last week. we have a unique case for the watch. people glancing on the wrist, likely to be five and 10 seconds that session length. what can i give you during that time to make it useful information. a lot is down to timing and news information, things like breaking news and notifications and hyper summaries we're kind of calling them. liz: nick, you got really lucky in that your product still lives. a lot of times when many of these apps get bought or perhaps, absorbed by other companies, they fire the team and that's it. we'll take your algorithms and you're done. what is the experience been like at yahoo!? you've been able to grow this thing. they make a big deal of the launch. they hire katy couric more our ear a than yours. they seem to put a lot into your idea of yahoo! news digest?

>> i'm very grateful for the opportunity i was given at yahoo! by marisa mayer and ceo and vice president of mobile to build yahoo! news digest. we're very fortunate to work with team like i had at summly to take the product to the next level. having people like katy couric being involved with something like this is amazing learning experience. i'm thankful. at end of the day i'm founder and tech noll gift. always fun to be working on projection. you don't want to lose that. it is exciting journey. we have more to go with wearable computing and watches. david: i'm curious how your mind works as opposed to my mind. i grew up analog. you grew up digital. you taught yourself code at age of 12. is it too late for somebody who grew up analog to learn code and, to maybe think digital the way you do? >> no, i don't think so at all.

it's a mind set as opposed to age. i think there are some excellent resources and tutorials online when it comes to self-learning in general. one of the applications of that is computer programing. so i think anyone of any age if you have some exposure to computing, with a iphone or phone in their pocket, we're exposed to apps. everyone can come up with the ideas. it is actually getting easier and easier to learn programming that is programing required to build them. david: you gave me hope, nick. thank you, son. liz: nick, we want to hear more from you. please come back with all your new developments, you're an inspiration, thanks. david: thank you, nick. liz: luxury carmaker audi is quite the inspiration lately. the nation's largest auto retailer teaming up with audi. auto nation audi on a roll. deepening their partnership with a huge new audi store. coming up we'll take you there. we'll speak to exclusively to audi of america's president and

autonation chairman and ceo, michael jackson. david: liz, this is car day. if you missed a fantastic exclusive with tesla and spacex ceo elon musk past hour. if you missed it we'll bring you some highlights what elon had to say. you don't want to miss that coming up. ♪ want to know how hard it can be... ...to breathe with copd? it can feel like this. copd includes chronic bronchitis and emphysema. spiriva is a once-daily inhaled... ...copd maintenance treatment... ...that helps open my airways for a full 24 hours. you know, spiriva helps me breathe easier. spiriva handihaler tiotropium bromide inhalation powder does not replace rescue inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva.

discuss all medicines you take, even eye drops. stop taking spiriva and seek immediate medical help if your breathing suddenly worsens, your throat or tongue swells,... you can get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and constipation. nothing can reverse copd. spiriva helps me breathe better. sfx: blowing sound. does breathing with copd... ...weigh you down? don't wait ask your doctor about spiriva handihaler.

no. not exactly. to attain success, one must project success. that's why we use fedex one rate. their flat rate shipping. exactly. it makes us look top-notch but we know it's affordable. [ garage door opening ] [ sighs ] honey, haven't i asked you to please use the -- we don't have a reception entrance. [ male announcer ] ship a pak via fedex express saver® for as low as $7.50.

liz: today for the first time ever autonation is opening the doors to its $21 million audi dealership in orlando, florida. look at the exterior here. the service area alone, 58,000 square feet. it is autonation's seventh audi store and this new dealership is showing the new q3 crossover. it's a job story. joining me fox business exclusive. scott keough, audi of america president and michael jackson autonation chairman and ceo. business must be really good. this thing cost $21 million. mike jackson, i will ask you first, what gave you incentive, why audi and why south florida? >> well, liz, good afternoon. good to see you. we have a great partnership with audi and we're very optimistic and confident about the future of audi. we are going to grow this

partnership together. under scott's leadership the brand audi is gaining momentum in the u.s. and with a fantastic product offensive, supporting that brand effort, it is a win-win combination that can't be beat. not only are we opening here today our seventh audi dealership, but last week we announced acquisition of our 8th audi dealership, barrier audi in seat tell, washington. liz: scott, i want a friend like michael jackson if i'm you. he is a real believer. the numbers do bear out. you guys have had incredible numbers. the best sales for august, ever. august is sort of traditionally a little bit of a slow month, isn't it, scott? why are the auto sales so hot? take me beyond the we make a great car. >> i do want to start there. we do make a great car. i think the second thing that is happening the brand is hot. we've done a lot of things to engage in the conversation.

so we have more demand than we've ever had. the third thing is our business model. we're running a proper business. good pricing, low incentives and the final portion of the put sell is what you see here tonight. dealers are investing and building stunning facilities. we have some of the best csis, highest owner loyalty and now the machine is really start turn. it is full compliment of things coming together which pleases me. >> classic virtuous circle. liz: i was going to say i like what he said, hey, it is simple, get a good business model. but it becomes more complicated, mike, when you build a 58,000 square foot service area, using 21 million of autonation's hard-earned money to do this. talk about jobs. you're quite the job creator, mike. autonation is incredible business but certainly at that particular location give us window how many people will be hired, what jobs you're looking to fill, et cetera. >> well, liz, now autonation

across the country, coast to coast, we are up to 23,000 associates and we will build towards an additional 100 associates here at audi of south orlando and we're very confident that we're going to be successful together with audi. they really have a win-win partnership where they understand that we have to be successful for them to be successful and for them to be successful we have to be successful. we're looking for win-win in business. we really have that with audi. liz: scott, you have the q3, which is very much expected to be a hot seller but audi is knee deep in innovation. elbow deep. in fact, audi just announced it is the first automaker to get a permit from the state of california to test self-driving cars on public roads. >> correct. liz: how does that fit into bigger plan? do you really believe people will want to use self-driving cars at some point? this is the google one we're

looking at. >> we do. this is classic audi. we always led by innovation. we're the first brand to bring quatro to the market, all-wheel drive and aluminum to cars to reduce weight and supercharging engines. we like to think as piloted driving. there are situations and circumstances where driving is less than enthusiastic, traffic wagessings, high stress. we absolutely see a solution with piloted driving. the real thing with us, a lot of press releases floating around, mock demonstrationings. we're doing it with real licenses on real roads in america and that is another classic audi treat. liz: yeah. >> liz, many of the, i've been in many autonomous cars and even google car. i have to tell you it is a wonderful feeling of luxury and comfort. even more importantly though what it will mean to safety. that these systems can, will ultimately, as they're phased in to vehicles at different levels

of automation will prevent accidents. liz: well, warren buffett even said, he of geico, owner of geico, saying this could be a real problem for auto insurers because rate of accidents drop, he is in trouble with that business. we just had elon musk of tesla in the last hour in a fox business exclusive, mike. i told him that i had you and scott coming up. he said, man, audi has some beautiful dealerships. he really was complimentary. and yet, he doesn't use dealerships. what do you think of a guy like elon who wants to basically eliminate the middleman when it comes to dealerships and direct sell to a customer? isn't that maybe the way of future, possibly? >> well, i think, as a startup and completely new company, without any existing dealers, it is elon musk's choice how to distribute and how to retail his cars. you know this is america. it is free enterprise. i don't believe in extreme

protectionism. and if elon thinks that is the way he wants to present his cars to the marketplace, he should have the right to do it. i would argue, the advantages of the franchise retail system but at end of the day it is his choice. now if he could sell cars without government subsidies, i would be impressed but, you know, when you get tend to $15,000 per car from the government, it does give you more options when your distribution model. >> we're following him and finding out when he will be able to stand tesla on their own two feet without subsidies. meantime forward thinking innovation is always something to be welcomed. good to see you both. congratulations on that gorgeous new audi dealership. scott keough, audi of american president and michael jackson, autonation ceo and president. audi is such a success story. david: they both are. i love those guys. innovator elon musk we heard about is being called a real life "iron man." in the fast hour liz got an exclusive with

the genius entrepeneur, the man behind tesla and spacex. coming up the highlights of what elon had to say. while tesla cars are still priced, they can't compare with coming u we'll tel youch trepreneurce ad record order, get this, 30 rolls-royce phantoms. that is coming up in the next hour. ♪ she's still the one for you. and cialis for daily use helps you be ready anytime the moment is right.

cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away. ask your doctor about cialis for daily use and a free 30-tablet trial. (agent) i'll walk you guys through every step. there are a lot of buyers for a house like yours. (husband) that's good to know.

having a perfectly nice day, when out of nowhere a pick-up truck slams into your brand new car. one second it wasn't there and the next second... boom! you've had your first accident. now you have to make your first claim. so you talk to your insurance company and... boom! you're blindsided for a second time. they won't give you enough money to replace your brand new car. don't those people know you're already shaken up? liberty mutual's new car replacement will pay for the entire value of your car plus depreciation. call and for drivers with accident forgiveness, liberty mutual won't raise your rates due to your first accident. switch to liberty mutual insurance and you could save up to $423 dollars. call liberty mutual for a free quote today at see car insurance in a whole new light.

liberty mutual insurance.

liz: tesla, one of the hottest names in momentum stocks and just the last hour the ceo of test last, billionaire entrepreneur elon musk came here in a fox business exclusive, not necessarily first to talk about tesla. he is talking about spacex, his rocket ship company that got a big nasa space station contract. how many cars he expects to roll off the tesla assembly line and much more to talk about along with the gigafactory, here is what he had to say. >> we'll be able to achieve half a million cars a year by 2020. and, you know, maybe we can do much sooner than that but i think that is what i feel comfortable predicting. liz: half a million cars by 2020. >> per year, yeah. liz: that is pretty interesting and impressive.

i hadn't heard that number. get to the brand new crossover suv the model x. >> right. liz: what kind of preorders are you looking at? >> we've basically sold out next year's production. liz: which is how many? >> sort of somewhere in the, i don't know, 15,000ish range, maybe 20,000. liz: still small when you compare it to ford and everything else, but dave, you look at this car, it's a hot car. david: absolutely a beautiful car. there is no question about it. the question is whether the business model could survive the government taking its subsidies away. the government says yes. he certainly doesn't. one businessman placed largest ever order for rolls-royce cars. who put in the order and how much is he paying? we'll tell you when we go "off the desk." $21. could something that small make an impact on something as big as your retirement? i don't think so.

well if you start putting that towards your retirement every week and let it grow over time, for twenty to thirty years, that retirement challenge might not seem so big after all. ♪ right here. with a control pad that can read your handwriting, a wide-screen multimedia center, and a head-up display for enhanced driver focus.

all inside a newly redesigned cabin of unrivaled style and comfort. ♪ the all-new c-class. at the very touch point of performance and innovation. ♪ . >> off the desk, rolls-royce

won its largest order ever, 30 phantom cars for 20 million dollars. casino firm louis viii holdings is buying the luxury feet for newest casino. steven mung, founder of the casino has a personal nine car luxury fleet worth one million dolla dollars. >> there is nothing more annoying than paying for an app when it costs four figures it. gives users the ability to film, edit and upload video in unbelievably clear 4 k resolution. it allows you to professionally edit and upload videos straight to the internet. >> we asked you on facebook and twitter if you think it's a mistake for advertisers to pressure nfl teams. jim on facebook says advertisers can't afford to pull their ads because they can't afford to be silent in front of target market while competitors continue to advertise. >> linda told us on facebook,

money is really the only pressure the league understands. >> not the truth. the number one thing to watch tomorrow, scotland's vote for independence. fox businesses special coverage, you need watch 5:00 a.m. eastern. neil cavuto will be there. he'll get you the latest numbers on the vote and ashley webster will be in scotland as well. >> "the willis report" is next, gerri, you have part three to buying a second home. >> you got that right. how to get a waterfront property. the hard questions you need to ask if you are considering that beach bungalow. considerable time, that's the phrase the fed is using and continuing to use when it talks about interest rates. what it means for your money. and speaking of money, some of the biggest companies telling the nfl to get their act together or they are out! we'll have the latest on this billion-dollar business. and washington says inflation under control, but