i have to point out that lorillard has run up a lot. and although we don't know what reynold's will shell out for the company, i think it's unlikely they'll pay more than $70 or $75 a share. that means your upside is somewhat capped here. at the same time, you get a bigger dividend from owning reynold's american. so reynold's may be the smarter, safer way to play this deal after it's done. it's going to go higher, i think. and if you simply want to enjoy the benefits of consolidation without the complications of an actual merger, there's nothing wrong with buying the big dog, altria, the best brand in a very healthy business and a very unhealthy product. after the break, i'll try to make you more money. >>> coming up, ante up. unlike gambling, investing doesn't have to be a roll of the dice. tonight, cramer's taking a look at the top players in the casino space to see which have been hitting the jackpot. the cadillac summer collection is here. ♪ ♪ during the cadillac summer's best event, lease this all new 2014 cts for around $459 a mon

that being, of course, reynolds in talks to buy lorillard and reynolds and lorillard may have to divesttobacco, and that's the giant u.k. based company that owns 42% of reynolds and would help to engineer the deal, if you will, and also wants to keep its ownership position at the same level so needs to buy more of reynolds. as you imagine, a great deal of complexity involved there, not getting to the other things to be debts with in terms of various agreements, documents, and decisions, but they hope to wrap it up as soon as this weekend to have an announcement monday. we'll see. certainly not going to be discouraged this morning by the performance both of lorillard, although, i don't have a price here that i feel comfortable sharing in terms where this thing may end up. analysts, depends who you listen to. bonny, very good on this entire potential transaction would think high 70s, i think, said as high as $80 a share. morgan stanley says fair value for lorillard is 68. we'll see. many people guessing. we'll have a 7 in front of it, but we'll see. synergyings are taking capacity out of

--the case of reynolds, lorillard is considerably lower. companies merge, the dividend likely to remain at four and a quarter or would approachand drop it to something closer to what lorillard is paying? >> the payout ratios are high. it also depends on the financing arrangement here. we have done some calculations, finding that if reynolds , it coulduch a deal very well fall below investment grade. that would trigger a whole lot of negative things. it could require them to securitize a lot of their loans and debt. they have to figure out a way to get this deal done, possibly by issuing equity. it will be interesting. a dividend is going to be a strong consideration. a lot of the investors are dividend type investors. >> thank you so much for your perspective. down twoamerican percent. lorillard is up by four percent. >> they say politics makes for strange bedfellows. it sure does, and we are seeing it again. in "the new york times" today, if are in political stripes are coming together in a push for reform,ion reofrm, -- slamming congress

now lorillard, one of the executives represented lorillard, lorillard's back arguing they don't marketo kids. look at the analysis recently published in the journal of pediatrics. between 2011 and 2013, exposure to e-cigarette marketing by children age 12-17 rose 256%. 24 million kids saw these ads. that's no accident in the world of big business. lorillard's blu e-cigarette accounted for 80% of this advertising targeted at 12-17 years old. it's the same battle, mr. myers. we've been at it before. they want to addict these kids, this time to an e-cigarette which has a chemical that's addictive. we know what it leads to. sadly, it leads to tobacco addiction, disease and death. i don't believe there is a case to be made for e-cigarettes being sold to children. i hope this committee feels the same way. >> it does. thank you, senator durbin. senator markey. >> thank you, mr. chairman. and just going back to dick durbin, that was the historic debate on the house floor, and that was the beginning of the banning of smoking on airplanes in the united states, and we still are in your debt, dick

. >> it is official, reynolds buys lorillard. the industry copes with declining demand. >> yellen on the hill as investors watch the fed chair's comments on interest rates and improving american labor market. two components in the banking sector, 401 a share driven by higher revenue, and investing and lending business, and jpmorgan with q2 profits at 146, and ceo jamie dimon says it was encouraging at the end of the quarter adding he believes consumers and businesses are better and the labor market is showing improve. and, in fact, addressing the media on call, he said, you look too depressed sometimes. the economy is actually improving at a slow, but steady pace. >> i liked what he said. it was funny how he's right, by the way. there's a quote in the call that said towards the end of the second quarter, encouraging signs across the businesses including uptick in wholesale utilizati utilization, improvements in the market, but he quickly added, i don't know if it lasts. all the media heard was he doesn't know if there was good ti

lorillard. we're talking to the ceo, susan cameron. it is a fox business exclusive. she is only talking to us about not just earnings, david, but about the decision haded -- handed down by a florida jury, billions in punitive damages. david: i always want to cough when i see their name. greatest risk from the fed is keeping rates too long for too long? our next guest says there is much bigger threat from the policies could be major source of financial instability. who is saying that? sheila bair, former fdic chairwoman. what is it that has her spooked about the fed. not what you might think. she is coming up. liz: coal stocks have been anything but hot this year. look at this, many falling 20% or more? one strategist says forget the numbers and proposed regulations. now is actually the time to buy. it is a tough case to make. he is going to make it. david: tell us what you think about the federal reserve board. is the fed hurting or helping our economy? simple question. tweet us, @fbnatb. your answers straight ahead. [ male announcer ] once, there was a man who found

lorillard 23 billion. >> reynolds is the second biggest in the u.s. and lorillard the third biggest. trying to compete with philip morris. this is coming as smoking is declining in the u.s. people are spending fewer dollars on cigarettes. the companies are trying to broaden their horizons and get into markets where smoking is a growing market. , if this dealtor does come to fruition, what does this mean for the liabilities a company like lorillard has assumed? a sense in which reynolds is buying a certain amount of risk. the companies they have absorbed over the past 15 years really made most of the cigarettes for the first to 60 or 70 years of the century. phillip morris is pushing overseas and reynolds has sold their overseas business. and parthunkering down of that is from the fact lorillard is a menthol cigarette company. that is risky because we don't know if the fda is going to ban menthol. if we do, that will be bad for this merger. if they don't, it would be good for reynolds. described the link between the cigarette companies, their liability

lorillard and reynolds american are xwiebing a deal. they have agreed on key issues, including price and which brands to sell to appease anti-trust regulators. the deal could be announced as soon as next week. imperial tobacco is set to buy some of the assets. imperial tobacco, up 3%, reynolds american up 0.83% and lorillard up 7%. >>> elsewhere, al by baba could be set to launch its ipo by the end of this month. the e-commerce giant shared a timetable in an e-mail. the financial times says alibaba hopes to begin its road show as soon as july 21st. with top executives in the u.s. and hong kong. the ipos could happen by early to mid-august. alibaba will trade on the nyse under the ticker baba. >>> amazon is pushing ahead with the plan to use drones to deliver packages to your doorstep. the company is asking the faa to commission test drones near seattle where one of its labs is working on the technology. last year, the u.s. designated six sites for companies, universities and others to test it for broader commercial use. but seattle is n

lorillard on our radar. soaring after confirming they're in talks with reynolds american.nd tim is a happy american. do you see some sort of consolidation with this company? >> well, lorillard, the reason i piled on to this stock, i think people were underestimating the growth of menthol smokes. they could be a very real number two, and the whole cigarette space is changing. the shakeout of this, it's good for imperial tobacco. they're going to get some of the spoils of this. divestitures could play into their hand. lorillard, the dividends are why people stay in these investments. >> and the semiconductor index is on fire. seems to be, there's no top. but qualcomm, with $100 billion-plus, they have a multibillion-dollar buyback, expecting to grow at 15% this year. trading one times that expected growth. i don't get why it's left in the cold. >> because of the overhang. that may not be appropriate, but these guys are going to have to start to deal with royalty issues. >> and they slightly missed their fiscal q 2, they've been in the penalty box. it's a cheap stock, and a l

reynolds moving forward with a deal with lorillard.] cheryl: here we go, adam. bells ringing on wall street. adam: after a week we had, look how stocks are finishing right now. the dow not settled but up 23 points. s&p up 2 1/2 points. nasdaq up 19 points. cheryl: at one point the dow was down 55 points and s&p as well. nice move to the upside. adam: but you mentioned the russell when you were talking at end of 3:00. russell intex is closing down. that would being a precursor for things to come. right now, "after the bell" starts. cheryl: let's get right to today's market action. we have pete lang, lang capital president who thinks this is a stock-pickers market with focus on value versus growth stocks. dan genter, expected to see another 3

as you pointed out many times are e-cigs. >> they are big for lorillard.ng and growing. >> i want to come back again because it's a story we followed along with broader, huge uptick in merger acquisition activity, and this appears to be on track, perhaps, announcing in the next few weeks. >> look the the airlines. fewer players means buying -- >> buy the premium and selling to divestitures at a lesser multiple? question about synergies. >> buy mo too. zblmpl >>> up next, jobs thursday with trading with this man right here. we have a lot more coming back after this. today his doctor has him on a bayer aspirin regimen to help reduce the risk of another one. if you've had a heart attack be sure to talk to your doctor before you begin an aspirin regimen. the porter was so incredibly... careful... careless... with our bags. and the room they gave us -- it was... beautiful. a broom closet. but the best part but the worst part was the shower. my wife drying herself with the... egyptian cotton towels... shower curtain... defined that whole vacation for her. don't

. >> reynolds american say it is did --s to buy lorillard lorillard.e are the numbers behind the deal. americans may be smoking less but one kind of cigarettes has remained stubbornly resistant to the trend. to be the in talks number one name -- its flagship brand in newport. the largestegacy, public health foundation devoted to tobacco use prevention and sensation. congress instructed the fda to take a look at menthol back in 2009. a ruling from the fda on menthol was expected last year. any idea why? >> it is a tough issue but one that that the -- one that they need to address. menthol teaches young people how to smoke. it keeps those adolescent smokers progressing. ultimately it makes nicotine addict if so it is harder to quit. it is time to get menthol off the markets. >> what is it that is fueling the rise of menthol cigarettes? only 18% of the adult population now smokes. menthol's are still on the rise. >> the tobacco industry spends a tremendous amount of money, a big portion of their $8 billion per year. they have targeted african-americans, l

menthols are holding on, not for their interested in lorillard, because they make newport, and that isngth. >> what do you use? e. vap >> i vamp to the vape. are we moving to a duopoly, it's not like a classic business text model -- went out, consolidate. when we say deal, it is not a deal. it is a consolidation of an industry. ask which you have seen for the past several years as all of these big players buying up smaller brands, essentially letting them die out. >> phillip morris. >> everybody is trying to get into e-cigarettes. what i think is interesting about this is even the ceo of reynolds came back after she tried to retire. she vapes herself. she likes e-cigarettes. in this deal because what these two countries are doing, regulators want them to spin off assets. imperial tobacco is going to come in. they're going to buy up blue e -cigs. bolivia, one big question that seems different than a coke-pepsi duopoly -- is there really pricing power anymore? sense to these guys raising prices or does it not work in the cigarette market? >> you think about why would anyone want to inves

reynolds is number two, lorillard number three. it's that deal, as you saw, valued at $27 billion.er just a massive lawsuit, and actually a punitive reward to the widow of a smoker that's almost the same price. more like $23 billion. so i asked that of susan cameron. do not miss that interview coming up after the bell. she is gung ho about that lorillard deal, and they're going to fight that punitive judgment that was just handed down last week in florida. much more on the deal to combine the number two and number three tobacco companies, plus rai's profit growth and the regulators hovering. will they even let that deal go through? coming up in the next hour exclusively here on fox business. >>> in the meantime, investors still digesting the fed's statement, but they're also keeping a sharp eye on two consumer heavyweights set to report earnings after the bell, whole foods and kraft. let's go to nicole petallides on the floor of the new york stock exchange for more on what to expect from these two names. but first, nicole, the market reaction to the fed statement. there was a littl

hy reynolds and lorillard it is about pricing power. together, they would be the number two player. $13 billion worth of sales. they would have more cost-cutting initiatives, resources to drive road. -- to drive growth. as you say, it is in a state of decline. we are going to see consolidation within the worldwide area. interesting that china is going slightly slower than the rest of the world. likely will fall about two .4%, more so in the rest of the world. it is all about consolidation. also look out for british american tobacco. they hold a 42% stake in reynolds and they could win out he -- win out. m&a.kes sense, a lot of now it is time for a bloomberg exclusive. jonathan ferro sat down with ecb governing council member nowotny and asked about the strength of the euro. >> i think the markets understood the message. at least the appreciation of the euro has stopped. in that sense, this rogue rim has already proved to be successful. -- this program has already proved to be successful. we have looked at influencing the us change rate.

and the maker of camel cigarettes, reynolds american, is nearing a deal to buy lorillard.may announce it next week. the big story is that imperial tobacco has confirmed that it is potentially in talks to acquire some of the assets that may be spun off to keep regulators happy once those other companies merge. could belike im's looking to buy some of those. and the german digital music company is negotiating with universal music group, sony entertainment, and warner music. it would be in exchange for not suing sound clout for violations. this is according to people familiar with the plan. up next, unilever slims down with a big brand sale. it is part of the consumer goods efforts to trim itself up. all of the details when we come back. ♪ >> good morning, everybody. you are watching "on the move." let's talk about the currency markets. yesterday, everything sold all. we saw a flight to quality in the european bond structure. bundsved -- we saw getting big and peripheral paper being sold. the euro did not move a great deal. we saw it trading down towards that level. that is w

let's look at shares of reynolds and lorillard. or lard also pulling by 90%. get back to janet yellen because when she speaks investors better listen. today fed chair yellin chocked people when she mentioned essentially she sees-- she called that stretch evaluation, but that's just bad speak for the start of a bubble. she's is them where? biotech, social media, this is kind of interesting to see, but she also says small caps are something to worry about. we have a small expert to talk about that later on. these have been real risk in real reward place. what she said said that major markets pummeling, but there were a few standouts. peter barnes is on capitol hill to break down yellin's testimony. am i right when i say it was not one comment about stretch evaluation and some companies that affects the market? >> it was. it was buried in the fine print of this official report that a coming yellin's testimony to congress. it reads quote signs of risk-taking have increased in some asset classes. equity valuations of smaller firms as well as social media and biotec

reynolds and lorillard get together, that's it. you have basically two companies out there.hat do you guys think. >> two companies controlling most of the market in the u.s. this speaks to consolidation in the industry. in the developed world also. there is not as many smokers, at least for traditional cigarettes. these companies need to find a way to cut costs and invest in electronic cigarettes which is -- >> it is struggling. i own altria. done fairly well. philip morris international struggled much worse than that. big dividend payers. this will be good for industry. it will cut costs. for smokers, maybe cut costs for them. less smokers. that is the trouble. >> e-cigarettes thinking are savior. they are not. they're under attack. they have not a good press or pr position with regard to american folks. consolidation is needed. i don't know if it saves them. melissa: college buy to expensive new heights. 50 colleges are now are charging more than off thousand a year. that is up from nine schools last year. talk about going into debt, this is amazing. more than $60,000 a ye

lorillard tumbled 10% to $60.17. >>> another deal to tell you about, specialty chemicals company is buying rock wood holdings for about $6 billion in cash and stock. the move is effort for those who tap into the demand for lithium products. shares of rock wood popped 10% to $83.15. albemarle fell to $70 and change. >>> the quarterly profit rose thanks to strong performance and the fixed income trading fell less. investors liked the news, shares rose more than 1% to $169.17. >>> and jp morgan shares rallied on better than expected quarterly results, even though the bank's earnings and revenue declined, trading revenue held up better than analysts forecast. jpm stock jumped 3.5% to $58.27. >>> after the bell, railroad operator csx reported a rise in second quarter earnings. in line with estimates and confirmed the outlook. the stock initially down a little after the announcement. during the regular session, though, shares were up a fraction to $31.15. >>> go pro saw shares property. they began coverage of the wearable camera maker with an out perform rating and $60 price target saying the co

they have in talks with reynolds and lorillard.een pushing forward on m&a between the two of them. they say there is no certainty of the terms but they are in talks to purchase -- >> it is amazing that we are talking about the trading of traditional tobacco brand when all the friend -- frenzy seems to be of the ec threats -- e-cigarettes. >> they need to cut costs and invest in e-cigarettes. be more health conscious. >> rain has not deterred the 18.7 visitors that came to london this year. they topped paris and hong kong as the top destination for international travel according to a mastercard index. for more, we are joined by an advisor and senior vice president. us.k you for joining what is so surprising is the numbers keep going up. the pound strengthening. when i came here it was 2.10 to the dollar. no one wanted to visit. now all of a sudden when it was 1.35 6to the dollar. everyone wanted to come and shop in london which i found shocking. we are getting heady again with the pound. yet people are still coming. >> absolutely. o

everyone thought that is why they wanted lorillard. what is interesting about e-cigarettes, it appears to be an industry dominated by startups and not these big tobacco guys who are chasing these companies. >> olivia sterns, thank you so much, our market correspondent. another top story we're following, banker innings. jpmorgan and goldman sachs are reporting their latest quarterly numbers. plus, the regulatory track down here and we are joined via skype by bloomers editor, cohen. also, bestseller of house of cards with us. weiss have -- white house correspondent phil mattingly. settling for $7 billion. let's start with you on the business side of banks, bill. what seems like a less bad scenario when it comes to fixed income trading. story, it isold very hard on the outside. they talk about how it is a difficult trading environment and then you hear that june was a great trading month. unless you are a traitor and you know their trading strategies, it is difficult to know exactly how they make money from a trading side. it is a black b

you are looking at the big merger of the day, reynolds agreeing to buy lorillard in a deal that wouldsolidate the u.s. tobacco industry into just two major companies, a tobacco duopoly. reynolds, which makes camel cigarettes, has agreed to a value of just under $69 per share. that could help cope with a slowdown in demand because less americans are smoking. what it has to pass antitrust hurdles. it is a big bet on menthol's and e-cig's. back after the break. ♪ >> welcome back to the second half-hour of "bottom line." nasty thunderstorm coming to new york right now. time for the commodities report. su keenan joins us from the newsroom with the details. >> below 100 for the first time since may. a decline on reduced fears about supply disruption. were consumers, added benefits being felt through lower pump prices at the gas station. m energy-related hedge fund. there may be trouble handling the surge in limited oil production. there have been concerns about insufficient supply, and it may turn into an oversupply situation. prices have been on a steady drop.e, accelerating the heading to

i think a lot of it will depend on one, can reynolds afford lorillard?is about $27 billion and the calculations we made says if it uses more than 50% debt to uses acquisition, it may jeopardize its ingress mid-grade credit rating. there is a thought that they will sell brands to appease antitrust regulators as well as to raise cash. >> we have to leave it there. i want to thank you very much. ken shea. this is "taking stock." ♪ >> this is "taking stock." i am pimm fox. let's go to carol massar. >> linkedin said it is acquiring -- and received news about them seconds from publication. terms are not disclose. barclays saw a decline. it is official. adidas will take over from nike at the official uniform supplier for the english premier league team manchester united. adidas signed a deal with a 20 time champion. the agreement kicks off next year. >> thank you very much. looking forward to johnson and johnson. lebron james's return is looking to bring half $1 billion to cleveland, the kim kardashian game is expected to add $200 million in sales. that is acco

we have confirmed that reynolds is still in a talk with lorillard.et's take a look, all of these are higher in european trading this morning. >>> well, the u.s. engineering and construction firm acom is going to be buying its rival for $4 billion. urs is seeing an 8% to friday's closing price. the deal will also create the largest publicly traded firm based in los angeles. aecom and urs worked together on the freedom tower in new york. we'll look at how shares are trading this morning. there we go. they are both higher in european trading. yes, that's european trading this morning. urs up 8.4% on the news. >>> whiting petroleum is buying t kodiak for 13.5% per share. they will combine for 10% of the more than 1 million barrels of oil that's extracted per day. whiting and kodiak right now, we'll take a look at how their shares are trading. both lower with kodiak up a quarter percent with whiting down 1.25. >>> and a deal worth $53 billion from shire. it is looking to be the largest aversion deal under a u.s. company looking to buy a firm and basing ex

last week, its parent company, reynolds american, agreed to buy rival tobacco giant lorillard in a $25 billion deal. in detroit, michigan, more than 1000 people from across the country gathered friday to protest the city's mass shutoff of water to thousands of residents who are behind on payment. nine people were arrested for blocking the departure of trucks from a private company hired to index shutoffs. according to the water department, more than 15,000 households saw their taps cut from march through june, with more than 90,000 at risk after falling at least two months behind on their bills. a you and panel has called the shutoffs a violation of the human rights to water. in new york city, residents rallied over the weekend to protest the death of eric garner , an african-american father of six who died after police placed him in a chokehold. police have accused him of selling we cigarettes. graphic video of thursday's incident shows an officer pulling garner to the ground by the neck and then holding his head against the pavement. as other officers crowd on top of garner, he repea

reynolds and lorillard are considering merging. it would require the company to sell some brands or assets to pass anti-trust scrutiny. >> reporter: the u.s. trucking industry needs more people behind the wheel, and if the industry cannot find drivers soon there will be a cost to all of us. >> president obama has been enlisting some of the nation's biggest company. apple, at&t and coca-cola promise to pay its suppliers within 15 days. the speedy pay off i will allow them to invest in higher workers. the program used for government contractors launched three years ago has effected 137,000 small businesses and sped up the payment of more than $1 billion. what if we told you that some of those big companies could learn a thing or two from america's mall business owners? well, that's the conclusion of three business professors who visited businesses in an rv and rental car. the new book penned by the three men "back road lessons entrepreneurs, executives and small business ownest." mike, what are some of the lessons that you picked up

reynolds and lorillard are considering merging. it would require the company to sell some brands or assets to pass anti- trust scrutiny. >> reporter: the u.s. trucking industry needs more people behind the wheel, and if the industry cannot find drivers soon there will be a cost to all of us. >> people are not getting the care that they need >> a partisan standoff... >> i ride in opposition to obamacare >> millions un-insured... >> it hurts to see my family in this condition... >> our politics costing lives? >> there are people like me literally dying because because they don't have the cash >> fault lines. al jazeera america's hard hitting, >> they're blocking the door... >> groundbreaking, >> we have to get out of here... >> truth seeking, award winning, investigative documentary series the coverage gap only on al jazeera america >> weekday mornings on al jazeera america >> we do have breaking news this morning... >> start your day with in depth coverage from around the world. first hand reporting from across the country and real

deal with lorillard. [closing bell ringing] cheryl: here we go, adam. bells ringing on wall street. adam: after a week we had, look how stocks are finishing right now. the dow not settled but up 23 points. s&p up 2 1/2 points. nasdaq up 19 points. cheryl: at one point the dow was down 55 points and s&p as well. nice move to the upside. adam: but you mentioned the russell when you were talking at end of 3:00. russell intex is closing down. that would being a precursor for things to come. right now, "after the bell" starts. cheryl: let's get right to today's market action. we have pete lang, lang capital president who thinks this is a stock-pickers market with focus on value versus growth stocks. dan genter, expected to see another 3 to 4% rise in the markets by end of the year. nicole petallides on floor of new york stock exchange. we can't get enough of nicole petallides. we have chris gersch joining us from the pits of cme. chris, want to start with you today, what you're look at in the markets, how you feel about, we had a crazy week especially for s&p? >> we had a crazy week. whe

lorillard up 2.7%. then, shire pharmaceuticals issuing a statement confirming that it met with abbvie to discuss the terms of abbvie's $51 billion takeover proposal. shire up 4% there, abbvie down marginally on the session as well. a tough day for private mortgage insurers. that's mgic, that's raid radian, genworth financial, all moving lower, some by a lot. mgic down about 9% as the federal financing house authority issues proposals to tighten requirements for private mortgage insurers that do business with both fannie mae and freddie mac. the agency's saying the proposed rules will help ensure that approved insurers have sufficient liquid assets to pay possible claims. and we're going to end with the big one, wells fargo lower after posting second-quarter profits that matched wall street estimates, but its mortgage revenue dropped 39% as lending volume did fall from the same time last year. bill, sue, it's interesting, because we kick off big bank earnings season a lot more besides wells fargo to come

reynolds and lorillard are considering merging. it would require the company to sell some brands or assets to pass anti- trust scrutiny. >> reporter: the u.s. trucking industry needs more people behind the wheel, and if the industry cannot find drivers soon there will be a cost to all of us. >> on tech know, imagine getting the chance to view the world. >> the brain is re-learning how it sees again >> after decades in the dark, >> i couldn't get around on my own >> a miraculous bionic eye... >> i'm seeing flashes >> great >> tech know, every saturday go where science meets humanity. >> this is some of the best driving i've every done, even though i can't see. >> tech know. >> we're here in the vortex. only on al jazeera america. >> president obama has been enlisting some of the nation's biggest company. apple, at&t and coca-cola promise to pay its suppliers within 15 days. the speedy pay off i will allow them to invest in higher workers. the program used for government contractors launched three years ago has effected 137,000 small

reynolds american today announced a deal to buy lorillard for $25 billion. they'd create the second largest tobacco company in the u.s., behind altria. the deal is subject to approval by federal regulators. >> ifill: wall street failed to make much headway today. the dow jones industrial average gained five points to close at 1,760. but the nasdaq fell 24 points to close at 4,416. and, the s-&-p was down nearly four points to close at 1,973. >> woodruff: the ebola outbreak in western africa has now killed more than 600 people. the world health organization reported the new toll today. it said 68 people died in the last week alone in sierra leone, liberia and guinea. health workers also confirmed 85 new cases in that same period. >> ifill: more americans have alzheimer's disease and other forms of dementia than ever, 5.4 million. but boston university researchers reported today, the overall incidence of dementia in the population has actually dropped 44% in the last 30 years. they credit better education and health care. >> woodruff: pulitzer-prize winning hi

comes amid a major deal in that sector with reynolds american, which owns reynolds american, buying lorillardon. the stock right now, both to the downside. suntrust down despite earnings estimates. growth in the loan portfolio helping the result, down 2.66%. >>> hasbro, meeting second quarter estimates, revenue short. the ceo will be on "fast money" at 5 p.m. eastern time to talk about the toy pipeline and the outlook ahead for sales. there he is. see him. 5 p.m. eastern time. >>> stocks off their earlier lows, now down only 46 points. bob pisani, kenny polcari here with me. how does the market feel going into this week? a lot of earnings but also have a lot of international tensions. >> right, so today, much more about the tension, not a lot of macrodata, the earnings that we have seen come out, you named a couple of them, causing a little bit of frustration. i think once again, the focus is kind of on the geopolitical, because that's what's really in the news much as we have seen, it's probably going to be short lived, saw this happen last week, thursday was a down day, friday, just took th

has been reporting that reynolds and lorillard will soon announce a merger deal and that imperial isuy and possess the assets. analysts say it could be worth more than $5 billion. sales of video streaming devices are booming. new figures show that roku and google's chrome cast are leading the way. roku and chrome cast each accounted for about 32% of u.s. devices held last year. al.tv was third. and the energy department says there won't be a repiece of the long gasoline lines that were seen during sandy last year. a planned 1 million barrel gasoline reserve will be in price. there a peak between mid-august and october. >>> let's check on the markets this morning after the sell-off that we saw yesterday. futures are higher. >> we can share. go for it. >> let's take a look. we are seeing a calmer market right now. looks like we are headed for a higher open on the s&p. on the dow, up 40. this is a reversal to yesterday, though. yesterday didn't end as sharply as it looks like at the open. we should note, we are headed for the biggest weekly decline on stocks since back in april. three o

reynolds american possibly buying lorillard.e dead states slows down everybody looks overseas to make up for that. >> we go to banking with wells fargo at any talk this morning. portugal's second-largest bank faces new challenges of solvency. charles peabody is with us. the news is in europe and it is better news this morning. do you worry about the contagion of portable bank or any other bank folded into the large banking system? >> i do. whatever there is a mix where theaverage is involved, funding is not core. you have accounting irregularities such as this and admissions of liabilities. that is a mixture that is volatile and unpredictable. always a crisis between liquidity and solvency. what is the trust and belief in our major banks right now? is it 100% certitude? >> in the u.s. it is. toy are almost back precrisis levels. in europe i'm not so sure. >> is it too early to wonder which u.s. banks might have the greatest exposure to portugal? the last round of european bank crises we were looking at if it was morgan stanley o

we haven't gotten one of the bigger deals, tobacco, lorillard purchased by reynolds, on track from whatt imagine, given not just reynolds and lawyer ore ri lards and imperial tobacco, a lot of things to work through. expectations it's on track for announcement in near term. >> the return of the megadeals and tax inversions. >> tax inversions. >> start with citi. financials in the lead. eric holder set to begin his news conference announcing $7 billion settlement with citigroup to resolve the government's mortgage probe. kayla tausche here with more on all of that. the bank is trading higher right now. >> it is because of markets trading being better than expected. but it that is settlement marring a positive picture for citi group of the payout, $4 billion straight to the doj. consumers by the department of housing a housing a housing and urban development, 2.5. citi's not pay taxes on $3 billion of that. so that's going to be a point of contention, you have to imagine with critics of the banking industry. now as i said, that marred a positive quarter for the bank. they did post the set

jason healy is president of lorillard subsidiary, "blu ecigs," in quotes, the market leader for sales and marketing in the e-cigarette industry. we welcome you. >> chairman rockefeller, ranking member thune and members of the committee, i am jason healy, the founder and president of blu ecigs. it is a privilege to come here today to speak about a new product that has tremendous potential to reduce tobacco-related harm and disease and hopefully play a role in the eliminating of traditional cigarettes. back in 2008, i tried my first electronic cigarette. as a smoker, i saw tremendous opportunity for myself and other smokers. i immediately saw that this product could provide an alternative to smokers who enjoy smoking or who struggled to quit like myself. but do not want the negative effects of traditional cigarettes on their health. i became convinced that e-cigs are just as much a disruptive force in tobacco as digital cameras once were to the film industry. today, every time i use and e-cigarette instead of a combustible cigarette, it is a good decision. i am not alone in seeing the p

timing is just -- i mean a week after they announce the -- the same week they announce the deal, lorillard0.64, there were those who bought it above $65 in hopes that the deal would be perhaps far higher than it ended up being. obviously it's now has a significant spread to the value of the reynolds off deal with is cash and stock transaction. >> hasbro, 36 cents meets. international up 17. girls up 10. holding a better than mattel. >> but still, i think these are all of the losers. it's ea, take 2 the winners. people want video games, we know that from xbox number, they're just not playing with the sam y toys they did when we were growing up. hasbro -- mattel was down so badly, barbie has just -- i mean, people don't play with barbie. i never played with barbie, i'm not familiar how people stopped playing barbie. >> that's a mental image i'm going to have trouble shaking. >> and ken, the family of product -- >> dolls for -- >> a little barbie house, dollhouse, that resonated with some. >> i've got twin girls, i can name every my little pony which drove the girls for hasbro in this case. >

no, i think part of what happened is, and this might be from yesterday, you look at how horribly lorillardk of the reynolds scale, and i think people, you know, that's the risk and risk arbitrage. so, i think that's one of the reasons, well, maybe time warner didn't trade as properly as you wanted it to trade. >> fox, by the way, look at the action there. fox was down almost 5%. >> that's exactly right. and that is when you talk about risk arbitrage, well, that's the risk side of things. >> that's a good point. >> and when you're talking about using your own stock as well as cash for the deal, when the acquirer is falling 5%, it's likely that you're not going to be at the number that they first stated, which was $85. >> here's something else, though, kelly, and a big happy birthday as well. >> thank you. >> people seem to have underestimated going into this deal the valuation on twx when they were valuing hbo and time warner properties. so, this is one of these things, you couple that with where rupert murdoch is at least noted to be a guy that will not take no for an answer and may pay a