tv Closing Bell CNBC June 22, 2015 3:00pm-5:01pm EDT
y? >> it will. when the leader in the space makes a demarkation line saying you have to pay for free? yeah. >> we'll leave it there. big story, big-face names. thank you very much. check out "fast money." >> yours truly will be there. see you then. >> "closing bell" starts now. welcome to the program. sara eisen in for kelly evans at the new york stock exchange. >> welcome aboard. i'm bill griffeth. it started with the european markets. the stock markets over there closed with a bang today. on optimism over a potential deal in greece. the ft-se, the cac, the dax. the dax was up 420 points.
how our own markets could finish up in this last hour of trading. well off the highs of the day. we'll take you live to athens for the latest developments. >> the on the optimism is in the markets. gopro getting hit after a short seller goes after one of its key suppliers. whether momentum is gone from these two names which had both tremendous runs. >> one trader is getting short united airlines. let's start with the latest out of greece. michelle cruisa cabrera is live
in athens tonight. >> rally driven by the mere fact that the greek government submitted a new proposal hoping to get bailout money and this new proposal wasn't laughed out of the room. it was that simple. big meeting amongst the finance ministers today. they came out and held a news conference. dijsselboem said it's a good starting point. it's a robust proposal. they don't have a deal but it wasn't as negative as in the past. last week christine lagarde said we need to have a discussion with some adults in the room. progress. moving the ball about five yards. they'll have another meeting later this week. maybe that gets us to the point where they can unlock bailout money to pay back the imf on june 30th. protests in athens.
tonight protesters who are very concerned that the path the government has been on might lead to an exit of the euro. the people you see on the screen in favor of doing a deal even if it means more tough austerity measures. even if it means higher taxes, have to retire later, work longer. a very large turnout. larger than last night's pro government rally. these people are nervous because so much money has been coming out of the banks every single day. every day that goes by the ecb has to make a decision. do they keep supporting the greek banks or not? the day they don't could mean capital controls. means you can't take your money out even if it's sitting in the account. that gets you closer to the point where maybe you start talking about a greek exit from the euro zone. >> when i have a question i come to you.
what do you think? is it real this time? >> yeah. i think absolutely. i think there's absolutely a reason to be more optimistic than we have in the past. but we are going to have to see if they actually come up with the goods in the final details and the technical response that has been so lacking up until now. i think the pressure from the ecb is really forcing them at this point. the fact that every single day it's possible that the banks might have to shut down that it's openly discussed that the banks may not open day after day is something that has perhaps frightened the government to bring something more to the table. >> all right. we will see. going to be an interesting week. thank you, michelle cruisa cabrera. she is getting a round of's applause. >> somebody is getting a round of applause. it's not us.
>> we have jeff kilbourne. i have no idea what the applause is about. >> i think it's our closing bell exchange. >> clearly the european markets lit a fire under our own markets today. is this for real? are you fading this? what are you doing? >> mcc hit the nail on the head. what is the ecb doing? they are plugging the hole. every day we withdraw from the xwreek banks. this is not a deal. this was a kicking down the can. the very very painful gm restructuring, none of that hair cut. they are continuing to throw money at this. right now they are celebrating. they are still clapping in new york. i can hear them that. big move in thebacks. 3% move.
here we are more cautious. we have seen volatility. the vix drop at the end of the day we are not seeing that big move in the s&p 500 because we are cautious here in america. >> we put an exclamation point on the applause. to highlight the fifth annual building homes for heroes honoree dinner darren jackson, the 25th honoree. building homes for heroes mission to assist wounded veterans. i suspect that's one of them right there. that is what they are applauding. >> not necessarily for the rally. anthony chen how does this look in terms of what the u.s. stock market and for the european stock market is pricing in when it comes to greece? >> i think a lot of people say greece says we don't have to
worry about it. the rally show the markets are doubtful. we heard voices from the world bank voices from the economists. voices telling us things are uncertain. when you look at what's going on right now, it reminds me of doing the vietnam era when kissinger was going around the world talking about peace is at hand. at this point, we have a deal that is close to fruition. i think we are moving that closer. doesn't mean we'll get one, but we certainly know we are getting closer. i think the financial markets are reflecting that. if we do get a deal uncertainty comes down. when uncertainty comes down financial markets eat that up. they love it. >> then we can start focusing on earnings again. you've been doing a lot of work comparing last year's economic activity to this year.
>> last year we had disappointment in gdp. then a nice bounce in economic growth. 4.5% almost 5% in the second and third quarters. earnings increases close to 8% the full year. forward pe ratio below 16%. today economic growth is expected to be maybe 3% 3.5% in a couple of these quarters but only 2.4% for the full year. earnings are expected to be down 4.3% this quarter, still negative next quarter. valuations are 30% higher and so is the dollar up 20%. a lot morehead winds this year than we had last year. >> one analyst said 8% earnings growth? he said a hot 0 of head winds companies are facing are going
to fade and will help earnings. that is not priced in yet. >> it's definitely not priced in. you would have to get rid of the minus 4% overhang we are going to be experiencing soon. last quarter we had much better than expected actuals over the estimates. it didn't boost the rest of the year. it actually stole from the rest of the year. we would not only have to do better, but prop up the remainder of the year. it's possible but right now s&p capital iqs events don't say it's probable. >> what are you doing with volatility? that's been one thing we talked about. buying it shorting it? >> you have to buy it here. every time it goes under 13 it moves if we see 8% earnings growth, that is going to accelerate the fed conversation the exiting of the fed conversation that will move rates up. soon as rates go up stocks get very cautious here. it's an ebb and flow. it's a see-saw. looking at volatility
complacent. at the end of the day you need to seek portfolio protection because this event, some type of event is coming. we just don't know when. >> thanks guys. have a good day. >> with the dow up 118, tech investors don't appear to be that concerned about greece's debt drama as the nasdaq climbed farther into record territory today. courtney reagan has details for us on who is moving the nasdaq up. >> that's right. there is no greek tragedy. opening date with a new intraday high. holding on to it throughout the session. of course here at the nasdaq have a number of equities hitting their own all-time highs. that includes adobe, hasbro comcast, the parent of cnbc express scripts and gilead. the biggest impact on the nasdaq 100 is apple.
we've been talking about it all day long with the company, reversing its stance after taylor swift's open letter to the company about paying artists, writers and producers for the first three months. facebook trending higher after unveiling a new mobile platform for ads at an advertising conference overseas in france. also biogen hitting nice strides today. i want to end with some of the airlines here at the nasdaq that are making nice moves after the "barron's" piece and talking about lack of competition. american airlines jetblue and spirit. >> thanks. we are heading to the close. less than 50 minutes left in the trading session today. the rally mode we were much higher earlier. dow up 118 right now. s&p up 14, nasdaq in record territory. >> up next the return of merger monday. we'll tell you which companies
are looking for a hook-up and which ones are trying to fend them off. >> also ahead, gopro supplier ahmadu brela tanking again after a negative report on friday. now it's taking gopro stock down with it. we'll talk about whether it's time to buy these dips or momentum is gone. ♪ every auto insurance policy has a number. but not every insurance company understands the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life.
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. most of the industry groups are higher. all of them and the s&p except for utilities which makes sense. 10-year yield at 236. nasdaq and russell hitting highs in today's session. in the lead energy financials and health care. >> utilities are negative with rates going up. you mentioned earlier manic
monday for mergers and acquisitions. shares of martha stewart living omnimedia lower on the news they are being bought by sequential brands for $16.6.15. a lot of investors are disappointed. a number of brands including jessica simpson items. all that takeover talk started last week. >> pipeline giant the williams companies rejecting a $48 billion takeover offer from rival energy transfer equity. williams says the bid significantly undervalues that company. shares of the stock are soaring on the news today. >> up 24%. cigna rejecting the latest takeover offer from anthem. cigna shares and anthem shares
both rallying. cigna and aetna reportedly buying humana. >> bertha coombs has more. >> it's like "game of thrones." m&a is coming. big insurers are in their own race to be top dogs. still not clear who will win. unitedhealth is the big dog. anthem is close, but not quite as much breadth as united. for the other three, size now matters. having medicare/medicaid together is what it takes to compete. anthem reiterating its bid saying together we would be a $53 million member powerhouse and squeeze out savings and negotiate better pricing from
hospitals. aetna has reportedly made overtures to humana. together they have an awful lot of scale, too. they would be slightly bigger than unitedhealth with about 44 million members and a huge part of that in the fast growing medicare area. analysts say going bigger gives these insurers the leverage they need to bring costs down for consumers. >> the big three all will have better negotiating power with the hospitals, with the health systems, with the physician groups. so that gives them the ability to truly moderate medical cost trend. >> you can expect all those providers to raise red flags with regulators consumers, as well. and with cigna, aetna, anthem at new highs, these deals are getting more expensive. humana is lower, but has the highest valuation trading at about 35 times earnings. guys? >> the big question is whether
this will result in higher or lower premiums for all of us patients out there. especially when you narrow the big five with two left out. >> people say it will be three rather than two. probably easier to get a deal of three down. the issue comes down to specific markets. in some markets, it's going to limit competition. in some of those markets, some players will have to divest in order to get local regulatory approval most likely. this is going to come down market by market. other research has shown when insurers merged it hasn't necessarily resulted in higher prices. we haven't seen mergers this big. >> thanks very much. >> a lot of excitement. after three years since the health care deal passed. >> there's a lot of mergers and acquisitions because of the
expectation of higher rates, but especially now in the health insurance section. ambarella known for its use in gopro taking a hit again today as it did friday. citron said the company valuations was ridiculous and slapped edped 60 price value on the stock. >> gopro getting dragged down. not nearly as much as ambarella which is down 22%. joining us is charlie anderson. he has a neutral rating on ambarella. sounds like you don't necessarily agree with the research that valuation is ridiculous and stock going down to $60. >> no. i wouldn't use that colorful language. we are neutral. the stock is trading roughly
nine times this year's sales. this's rich for a semi. we prefer a lower number to buy shares. we wouldn't say the stock is going to $60 or something like that. fundamentals are good with this name. >> clearly, gopro was one of those momentum stocks that everybody loved. pushing it higher like they did tesla. pick your favorite in that regard. is that partly what is coming out of not only this one but ambarella, as well? >> these stocks will trade in sympathy with one another from time to time. i would say on gopro, we put out a note we thought father's day was okay. there may be some independent issues there. you also should note fitbit is doing quite well. it's very possible some people are trading out of the gopro and ambarella to fitbit. >> why wouldn't gopro just buy ambarella when it works so
closely with it. it's getting cheap here. >> we don't see that. it's rare you would see a hardware company buy a semi company. the unit volumes at gopro don't justify owning a chip company at this point. that is not something we would see. >> at what point does it get so low you would actually tell investors to go and buy and upgrade the stock? >> it's nine times this year's sales. 7 1/2 times next year's. we liked it historically when the stock has been mid 20s multiple. i would say in the $70 to $80 range. that is a great place to enter the stock. it's probably worth higher but great place to enter. >> i don't know our guys in the control room can pull this off because fitbit only came to market last week. i'm intrigued by your thought money coming into fitbit was
coming out of gopro. if we can build a line chart, what makes you say that? what are you looking at that suggests that's what's happening right now? >> we saw it friday. we so gopro back off a little bit. they are close stories. i noticed this weekend, they are literally right next to each other. they are in competition for consumer dollars, but in competition for shareholder money and live in the same neighborhood. >> the scale gets skewed because of the rise of fitbit on that chart. as you see that goes up the other's going down. you put those two in the same category. they would fit the same profile for clients, for users and for investors, i guess? >> yes. it's not a perfect analysis but it's close. >> what's the next catalyst for gopro stock? >> it's a product
diversification story. they are going to make a consumer drone next year. we don't have that in our estimates nor in the consensus estimates. that is a significant opportunity. by our math that could be a $2 billion market next year. gopro is doing next year around $2 billion of sales themselves. there is considerable upside if they make a good consumer drone well received. >> good to see you. thank you. charlie anderson from doherty and company. cramer is focusing his eye on ambarella. >> the company had a big run, up more than 1 hundreds%. >> we are heading to the close with about 35 minutes left. dow is stull up 117, almost 120 points at this hour. nasdaq once again back in record
territory with that 40-point rally. >> airlines getting a bounce. united continental stock could hit turbulence despite lower oil prices. we'll get you the trader behind that call next. also new evidence that the housing market is firing on all cylinders again helped by a spurt of first-time buyers out there. diana olick has a special report.
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airline stocks moving higher after "barons" published a bullish report saying we could see a 50% move higher in shares for major u.s. carriers. is the bounce worth buying? united down about 20% this year. a according to our next guest that, trend will be here to stay. >> let's do a stock brawl on the airlines. >> james, make the bearish case on united. you are just don't like the stock performance here? >> right. absolutely. a lot of my case here has to do with the technicals. we saw the stock top out at the end of january around $75.
it's been nothing but bearic trends lower since then. there hasn't been anything that's been able to help this stock catch a bit. we are higher today. even as we see the stock gap open sellerses come into the market. on a day when the stock is higher, we are seeing the put/call ratio above its 20 day moving average. that options market is bearish on ual today, as well. >> fundamentally speaking what's the bull case for this stock? we are seeing air fares go higher. that's got to help. >> certainly. capacity is rational. it's up a little bit, now growing at a pace alarming to us. airlines are going to have record profits this year. oil prices are down to the point where they are 40% lower in fuel costs this year. they are making money, generating cash using the cash to fix the balance sheet and grow revenues in the future. that will continue for the future, as well. >> it's unusual to see united
going lower after the "barons" story hit. delta trading higher. united has been the laggard. why are you bullish? >> united is highly concentrated in houston and highly exposed to oil prices dropping. energy executives are traveling less. we don't think the oil boom in the u.s. is going anywhere for the next several years. we expect that market to recover. we think united is trading at a huge valuation discount to peers because it has underperformed financially since the merger. we thing it has room for improvement. >> my bad. that was a year-to-date chart not today's chart. >> looks like it's up almost 3%. >> on the airlines in general we've been looking at dow transports that went onto correction territory before it bounced out of there last week. have those stocks bottomed? is that a good thing for the broader equity markets? >> i don't necessarily think
those stocks have bottomed. we are continuing to see outflows in the transports and continuing to see bearish price action. that is not going to go well for stocks like ual. we can't look at this as a trade that will trade in line with oil. ual topped out in the end of january. we didn't see oil prices bottom until mid march. we are not looking at oil and these transport stocks. we are looking at momentum in the sector. it's to the down side. outflows continue to pick up as we see broader markets move higher. >> jim, do we necessarily need to see lower oil prices to have the airlines go higher? the ceo of delta was with us and he said it's not about our costs of fuel but the load factor and the demand for seats is there. that is making them money, not the lower fuel costs.
they hedge that anyway. >> i would agree. airline executives changed their behavior. they are moving their protect profitability and long-term sustainable growth. if there is a weakness in unit revenue miles, they will cut them. they are behaving differently. we think that is creating a different valuation prospect for investors. >> all right. thanks, guys. we have a news alert on takata. what is the latest now? >> tomorrow there will be a senate commerce committee hearing where they are going to be looking into how takata handled and mishandled the recall of defective air bags. ahead of that some documents are coming out that will be presented the a the hearing. they are coming from the office of senator bill nelson. among the documents being released, one showing that
takata, between 2009 and 2011 according to these documents, suspended the safety audits because of financial reasons. they could have been doing safety audits into what was happening with their air bags between 2009 and 2011 but according to the senator's office, they suspended them two years for financial reasons. they knew about this or could have known way back in 2001. just a few of the items coming out ahead of the hearing that will be held tomorrow on capitol hill. you can bet there will be a lot of e-mails that are going to be shown and a lot of people saying how did it get this bad? back to you. >> just the latest revelation in what has been an ongoing saga. thank you, phil lebeau. time for a cnbc news update with sue herera. >> the obama administration responding to ben bernanke's call to keep alexander hamilton on the $10 billion. it is under review for a
redesign for security purposes and appropriate time to consider a change such as this one. >> white house saga judgments may be needed to agree on a framework for a nuclear deal with iran. the deadline to agree on a pact is set for next tuesday. there is a possibility that deadline my need to be pushed back. >> niagara bottling is recalling its products after finding out one of its spring sources was contaminated with e. coli. the water was sold under various brand names in the northeast. several supermarkets sent out press releases addressing that recall. no word if anyone has become sick. >> scuba divers discovering an ancient roman ship off the waters of sardinia. the finding is significant because that load did not appear to be disturbed. the ship was carrying construction materials for the roman empire. >> that it's cnbc news update.
>> wow. >> amazing, right? >> bill made a face. >> their version of home depot, i guess. >> thank you very much. >> i'm among those who say don't touch the $10 billion. alexander hamilton practically invented the currency. >> they will both be on it. >> change andrew jackson. he hated currency. this was due for a reprint and to be updated. that's why it's going to be the $10 and not the $20. i think it's great to have a woman on the bill. pick someone in the financial sector. my pick was catherine graham. >> no. >> we'll agree to disagree i guess. >> this is going so well to this point. >> and we matched and everything. >> 25 minutes left. 113-point gain on the dow. up next the most important half hour of the trading day. one top trader tells us what is flashing red on his radar.
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the rally continues with the dow up 102 points. the critical time period. you are watching the russell. >> yes. >> those secondaries, the nasdaq is in record territory. >> that's right. the russell 2000 for me is one of the most important indexes. it speaks to the u.s. economy at large. it's been lagging several months. finally got ahead of the s&p 500 in the dow. >> you are watching the transports very carefully. we were talking about that earlier. they got clobbered earlier. is it for real?
they now at their resistant point. >> they are sitting right on it. >> if we get above that maybe we could change that trend or have a nice counterturn rally. >> we'll keep an eye on the transports. you are watching the bond market here. >> always. >> yield on the 10-year. >> always. if you look at the end of may when yields started to spike, same thing happened in june. yields started to spike. equities sold off. there is a clear correlation between the two. we need to keep an eye on that. yields will be tame for the moment. certainly if we get a greece deal, we may see yields spike. we'll see equities rally off that. then they'll settle down and may pull back. that is one thing i'm guarded about for equities moving forward. >> thanks, keith.
see you later. to the story of the day now. pop superstar taylor swift took cutting apple to the core like no competitor has ever done. the company still in the green despite vowing to taylor swift's call to pay artists during trial periods with apple music. for what it means for apple and its music business going forward, let's bring in john fortt. you're critical even though we heard both end up on top. maybe spotify is the loser here. >> i'm not sure apple does end up on top here. almost $200 billion in cash and equivalents lets you have the ability to make mistakes. they bought beats for $3 billion plus. that's supposed to prevent them from making mistakes like this one.
two things matter. can they get artists excited enough about apple music and apple music connect, the social part of this service to put content into it and differentiate it? that's one. then as apple negotiates other content deals going forward, not just in music, how much will this come into play? they want to do stuff in tv and more stuff in movies. are people going to say you have a hard line but taylor swift was able to convince you to cough up more money. we want you to also. >> i don't know. that is a stretch. >> jimmy iovene legendary producer should know producers and others should get paid even though it is a free trial period. who do you think made this decision, especially considering how quickly they changed mayor mind on this? >> eddie q said he woke up saw
taylor swift's comments and realized they needed to change course. did jimmy even have much of a voice or did they send him out to negotiate this and say we are not paying anything during the free trial period. that is not negotiable? i don't know. i have no insight. it puts them in a difficult position if they take a hard line and change it at the end this way. certainly there was a ground swell of opposition to this. even elvis costello spoke out about this. any time you've got your friends upset with you, you wonder why apple didn't see this sooner more than eight days before they are about to launch this big new service? >> taylor swift is the ultimate pop star queen. what carl quintanilla said now the ambassador for the music
industry. thank you, john. >> "billboard" magazine's woman of the year two years in a row. >> the cover of "time" and "business week." even her boyfriend tweeted out at her. calvin harris. >> wait till thursday. it will change by that time. take andrew jackson off and put rosa parks on the $20 bill. up 103 points. >> you want to get the last word. it's currencies. up next we've got to talk about encouraging news on the housing front. diana olick has the lowdown on the closely-watched spring selling season.
a lot of buzz on the floor as advanced auto parts will ring the bell in commemoration of a home building program for wounded warriors. we have a number of veterans wounded veterans visiting the floor of the new york stock exchange. these are a couple here. any time you bring veterans to the floor of the big board, they get a huge response. during the commercial there was a huge round of applause for these understandably so for 0
the home building program for the wounded warriors. >> speaking of home builders it was a good day for the home builders. most are in the green. this after some very solid housing data. >> home prices jumping at their fastest monthly clip since before the financial crisis. diana olick has details. >> reporter: we got a striking statement from the realtors chief economist saying the median home price could surpass the last peak which was in 2006. we have a different set of circumstances pushing prices today. first, strong demand amid weak supply. may sales beat expectations rising 5.1% for the month to 5.35 million units annualized the highest level since november 2009 which was the first expiration date of the home buyer tax credit. with the supply of homes for sale not gaining much at all,
that pushed the median price of a home sold in may to $228,700. compare that to the highest monthly price ever which was back in july of 2006 the peak of the boom. it was $230,400. the realtors chief economist says we are not in a housing bubble. why not? he points to far weaker buyer demand, tight credit conditions and builders operating at about half speed. others say there's very little leverage in this market lots of cash. before that leverage was the hallmark of the last bubble if prices get too high people just won't pay them but still buy houses. that's the rationale for the no-bubble argument. we are debating it realty check.cnbc.com. >> thank you very much. art cashin just stopped by. the imbalance is to the sell side about $700 million to sell on the close today. >> could be why we are off the highs. dow up triple digits. 100 points with a little more than 10 minutes to go before the
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about seven minutes left. joining us is bill nichols from cantor fitzgerald. we've been talking about how this is maybe one of the biggest unloved bull markets we've seen in a long time. >> people want to not believe it and take what's happening in greece and the market can break out in new highs. >> it goes into the idea this entire bull market has been defined by a wall of worry. you have a chinese stock market. federal reserve is about to raise interest rates since 2006. greece could actually exit from
the euro. do you think we are just going to keep climbing all these worries? >> feels like the market continues to shrug off these problems. to the extent something happens and you get a real problem where there is worldwide defaults and there is real problem with money moving around in my meaningful fashion, you might see it hit the markets. >> where are you going to make money? >> you were talking about the transport sector. utilities, real estate might be a bit of a problem with rates ticking up. perhaps in the transports specifically the rails and airlines. will be interesting to see if this can carry the ball forward. >> i was going to mention, do you want to chase this m&a
story? you are seeing health care which have been strong continue to rally on this idea there are more deals coming. >> it's overall healthy for the market because it takes supply out. unless you see a big wave of ipos or secondaries, m&a is underlying bullish for the market. >> bill nichols, good to see you. we'll come back with the closing countdown. dow up 93 points. >> after the bell facebook and google in the middle of a fierce battle for online video ads. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement.
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[announcer]stay in the flow with quickbooks self-employed. start your free,thirty-day trial today at join-self-employed-dot-com. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business. more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research project is teaching ibm watson to see.
in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day. coming up let's show you what happened today. it started in europe. asia was strong. europe was the big beneficiary of the talk of a greek bailout. finally coming to fruition. the german dax finished up 3.8% today. very big rally. art cashin pointed out 3.8% for the dow would mean about 600 point rally here. as far as our market today, rally on the open for the dow jones industrial average. it was after, this is where europe closed when the buying pressure from europe came in as soon as european markets closed around 11:30 eastern time that's when we started to see selling pressure in our own market here. we are well off the highs.
dow was up 166 at the high of the day. up 96 at the close. nasdaq watching carefully to see if it can finish at an all-time high. in record territory comfortably. old record was 5132. up about 33 points right now. bob pisani there is more on the greek bailout. >> there is a greek official comment saying the ecb will continue to aid greek banks as long as the bailout is ongoing. >> the question is whether this will create a new breakout. even if 2 a kick the can occurs. european earnings are better than u.s. earnings. my question is whether this will renew that big european rally we
saw in the beginning of the year. that fizzled in april and may. >> going off the highs for the blue chips. the nasdaq will have an all-time high on the close here. we are going to get the latest from athens on the greek bailout right now. welcome to the "closing bell." i'm sara eisen in for kelly evans. bill will rejoin us in a moment. the dow jones industrial average ending up three triple digits there. s&p 500 up 0.6%. nasdaq closing at a new record high. 5132 is the record to beat. we did that at 5153. russell index also closing at a record. let's bring in today's panel.
>> amazing we are talking about a new record for the nasdaq on a day we were talking about the possibility of a greek default and exit from the euro. are equity markets pricing in this deal? >> they absolutely are. if we truly get some kind of positive development tonight out of this emergency summit there is more room for equitys to rally. there is more room for europe to rally. you have a number of companies that have been implicated by greece. i think the underlying fundamentals don't matter. if you look at industrial names, if if you look at euro stocks 50 this has room to rally. what happened today in housing numbers that were very good multiyear highs on housing. first-time buyers stepping back into the market. you've got the fed and greece out of the way. there is room for markets. big is a big if.
>> and m&a was a positive feature. >> getting the fed and m&a out of the way is easier said than done. those are very important to the market. >> yeah. there's a certain amount of punitive response out of the world, whether it's ecb or whether it's the imf. they want to be punitive about greece. some of that is because they worry about the next domino that would fall if they were to provide too much ease for greece right now. clearly, if you take a look at that 400 point rally out of the dax you were talking about or the rest of the rallies around the world, take this much of that and that bails out greece. the whole of greece. then you are starting all over again. the question is if it really is something that has held us back wouldn't we be better off, rather than being punitive to get some sort of bailout going. obviously, the response today, m&a is part of it but a big
part was greece. >> you had the news conference from janet yellen last week. had a question. she wants more decisive evidence that the economy has come back from the first quarter without housing data today, we'll get more later in the week. >> i think we are. it's important to remember during the taper tantrum part of what helped was not the volatility of "wall street journal" but the tightening of financial conditions on main street that forced the fed to delay the taper. the fact we are seeing first-time home buyers back in the market and a housing market that would withstand an inrate increase paves the way for the fed to fulfill its plan of raising interest rates this year. >> we'll get first quarter gdp numbers on wednesday. >> second quarter is already looking better. >> couldn't look worst after the first quarter, right? >> that is true.
to jon's point about the ecb, i'm encouraged that the ecb will extend its lending facility to greece. part of the issue is not just greece but what this means for the euro zone. the fact they are not out of patience with greece is as important as greece putting forward a deal. >> they are watching the transports carefully because they were bumping up against resistance. they closed above that today. is that significant to you? what does it mean? >> very encouraging charts if you look at the rails and airlines. csx, we talked about the airlines. people have overdone the specific issue of the creep of capacity. a couple of analysts saying it's time to go back in there and pick a couple up. rhetoric we are talking about tonight is everybody seems like the panel is reasonably constructive on where the u.s.
economy is. if you get the back drop of greece getting another band-aid the industrials look good. also the financials. a lot of the market is still somewhat underweight even though we are probably at sector weighting high since 2009. >> let's get the latest on greece. new hopes for a debt deal finally. michelle caruso-cabrera staying light for us in athens. >> there are hopes for a deal. it's not a done deal. we are closer than we've been. the greeks sent in a proposal late last night. it wasn't completely discarded like we have seen previously. we started to see details leak out about what's in it. we are going to find people have
to pay higher taxes, have to contribute more when it comes to pensions, and a lot of people aren't going to be able to retire as early as possible. we are waiting to hear from the prime minister of greece have a news conference later tonight where he is for a big meeting. we are not certain. we'll see if it happens. tonight, a protest in front of parliament that you can see behind me the people out tonight very much want this government to come to a deal. they want a bailout agreement, even if it means more austerity because they are afraid of leaving the euro. tonight was different than last night. last night we saw people very much against austerity. tonight we see people willing to put up with it as long as they stay in the euro two. very different groups. last night working class, lower middle class. a lot of folks who didn't speak english. tonight middle class, upper middle class, very well educated. well spoken when it comes to english.
they are terrified of leaving the euro. >> we want to stay in euro and want an agreement as fast as possible. >> we should be worried. we have no place anywhere else to go. we'll be on our own here. >> i'm here to protest for my country remaining in the euro. i'm here to protest for my country going forward instead of going backwards a couple of decades of years ago. >> tonight was lawyers, business owners, like i said upper middle class. last night folks who were poorer said i don't know what the euro has done for me. i don't have any money, period. they don't have nearly as vested interest in staying within the euro. you see a class divide here as this gets down to the wire. we are talking about june 30th is the deadline to pay the imf.
>> we've seen this greek tragedy many times. you've got to be hedging. the rally caused by the talk out of athens i've got to hedge this just in case. >> what a lot of people are doing is they are holding on to some cheap protection, historically cheap protection especially in an uncertainty like this. that is whether the s&p puts. that's what we measure as the vix. those puts are very reasonable right now. if you've got the market at record levels, new record for the nasdaq, as well. i've got the back drop of something potentially in greece that could unravel, i would anticipate regardless of what we see as far as an agreement by the end of the week we will still see police in riot gear and people throwing molotov cocktails because there is a
hard left in greece that will not accept any of this. that will be a back drop where they might want some of that protection. >> i've been watching this story through the lens of the currency market. it's been interesting to see the euro's resilience. the euro is not caring about today's deal. it's flat right now against the u.s. dollar. i wonder if there is broader message from other markets. whether it's good or bad for the euro it's all about central banks. that is driving this trade. as long as the u.s. economy looks better and fed looks set to raise interest rates this year it's a strong dollar en environment environment. whatever is happening in greece is noise and sentiment. >> the other thing is greece is not the fed's problem. greece is the ec b's problem. they said specifically it will continue to provide support for the euro zone. i think the central banks are
still driving this market. janet yellen is not the dove people have come to believe she is. my personal opinion, i wonder if she is one of the september in terms of raising interest rates. i don't think she is afraid, but waiting for the right moment. >> you've seen a lot of short positions covered. i think the euro has been a currency helping its strength. i would be short the euro. at this level, whether it's negative news or even selling the news that is positive you are going to see the euro weaken and the dollar which everyone believes is going higher. that is your play. you need to be in dollar strong trades. watch the euro. not get sucked into the fact the euro rallied. it's in a much more bearish
position now. >> thanks. we'll see you later on "fast money" at 5:00 eastern. why he is raising his price target to the company. i know i'm on camera but there is no teleprompter so i'm reading this. as i mentioned, we have earnings out. sonic is out with its quarterly results. >> we have earnings per share coming in 36 cents per share. revenues relatively in line $169 million. analyst estimates for $164 million on a consensus basis. comparable store sales came in systemwide at a gain of 6.1%. that also beats the average analyst estimate of 5%. better comp store sales. however, full year earnings per
share growth comes in at an estimate or forecast between 27% and 29% by the company. narrowly missing analyst estimates at 30% gain for full year earnings per share. shares down by what looks to be 3% on 76,000 shares of trading volume. again, relatively mixed results. sonic shares and quick service restaurants up about 25% year-to-date. up about 50% over the last 12 months. they had a nice run. looks like profit taking on light volume after hours. tomorrow sonic ceo cliff hudson will be on "squawk box" talking about that food trade. >> you could say it was priced to perfection. 12-month gain 53%. thank you for breaking down those results. a new report finds online video growing faster than any
youtube is king when it comes to getting video ads to eyeballs online. facebook is catching up. video advertising on the internet is where it's at right now. >> joining us to discuss, gene munster at piper jaffray and mark stevens. you upgraded facebook stock today. first, tell us anecdotally why you would put certain clients of yours on facebook ads in terms of video versus youtubes? >> quite simple. they work. we find that one of the main reasons they work is because it's -- two things. they are incorporated into the feed. you this
you don't have the gate keeper of the ad stopping you from seeing the content you see. we have people who wait to click it and those who hate the ad because they won't buy anything because it's stopping me from viewing the content i want to see. secondly facebook's tremendous ability to identify the demographic information we want for our clients. it proves itself meteorologistrically it works very well. >> facebook have done a better job as they kept changing format they kept integrating ads into the in us feed. >> our comments today were about oculus. this is a perfect example of facebook understanding how year behavior is changing.
take ad share? if digital video ads are growing, isn't there room for all of them? >> there is dent lit rising tide approach. about 10% of what is advertised on video is done online. there is a gap there. youtube and facebook will offer the same periscope of live video feeds. >> are you taken with the twitter project lightning? when the stock topped last week folks were saying it's popping because of that. did you have high hopes for this project lightning? >> i don't. i don't cover twitter. we look at it from a different
angle. i don't have much to add on that. >> i wanted to ask about your call on facebook. you see potential for facebook to make money off virtual reality? how does that work? >> this is exciting. this is the next big paradigm shift in computing. think of getting rid of pcs and smart phones and moving to a new paradigm. that is augmented virtual reality. some could be cynical because it seems so far fetched and google glass was a failure. we believe that oculus gives facebook a foot hold and seat at the table, an insurance policy, for this next computing paradigm. it's going to cost about 3d 00 to $500. the light will go on as far as what these experiences are like. ultimately is it's going to be live sports live entertainment,
games. i think they'll take their existing core products of facebook instagram and morph that around oculus and have a longer sustainable growth. >> you said you caution against undervaluing traditional media channels like maybe cable tv and newspapers. why is that? >> they still work. we have to look beyond our fascination with the latest technology that google youtube, facebook will develop. and recognize that traditional media is not an ugly word. we spend millions of dollars on radio and television. it works for us. we always need to look at the mix. what is the proper mix? we can get fascinated by new technologies and we should with something as effective as facebook.
the mix is important. >> we look forward to virtual reality on facebook. thanks for joining us today. what a year. >> this is your favorite story. >> sara was just telling me about this. >> what a year for jordan spieth. first he wins the masters, now concurred the u.s. open taking home nearly $2 million in prize money, but he may not be the real winner on the green last night. dom chu will have that story next. when you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about.
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jordan spieth did something no golfer has done since the 1920s. became one of the youngest professional golfers to win two majors. >> but it is under armour that hit a hole in one with its spieth sponsorship deal. just the latest in a series of underarm or wins. steph curry. >> absolutely. under armour and its founder have been on a hot streak over the past decade. you saw a good amount of jordan spieth and saw him win golf's second major of the year in dramatic fashion just like he won the masters earlier in the spring. you saw him covered in attire under armour cap to shoes.
it was one of only two noticeable logos being sported by spieth this time. the other was telecom giant at&t which is on his golf bag. his endorsement deal was renegotiated back in january and extended for another ten years. spieth's star is on the rise and so is his market value. the move by under armour to lock him down before he hit this major winning streak could be the latest win for kevin plank. other athletes are part of the stable and they include nba's mvp steph curry. buster posey of the giants and giselle. this company has made very astute choices with regard to player personnel negotiations for its endorsers. >> i would add misty copeland the ballerina.
>> lindsey vonn. >> absolutely. the thing i think about this pick, i'm not a golf fanatic, i don't know if it will do the same to draw in new enthusiasts to this sport like misty copeland did. >> don't tell that to bill. >> nike had tiger for years. they got rory. under armour is getting all the buzz. they nor where near the size of nike but nipping at their heels. >> under armour overtook adidas as the best selling in terms of brand for apparel. that is a big deal because it wants to make its presence known. this could just be the beginning of something bigger for the game of golf and big for under armour overall. this past u.s. open with spieth was in primetime.
we are waiting to see what the ratings were. if he makes a good showing and maybe win the british open next month, that puts him up for an american pharoah type of phenomenon. it's been 1930s since bobby jones won the grand slam back then. this could be a big thing for the game of golf. we have our first real grand slam winner in decades. >> they are playing the british open at the old course in st. andrew's which looks very much like chambers bay. pga is at whistling straits in wisconsin. >> it does. american pharoah is the only athlete that's won anything lately that isn't wearing under armour. to bill's point as far as nike that obviously moves the needle a lot more over at under armour when you have hit a, b or c which they all have.
and jordan spieth, that's huge for them. kevin plank doing nearly everything right. a much bigger impact to their bottom line. >> nike did close today at an all-time high. it's doing very well. what under armour has to do is come up with a consumer business to match what it's doing in terms of sponsoring athletes. it has very small golf business. >> there is a trade? >> yes. both of them. nike and under armour. >> very good. thanks, dom. >> you're very welcome. >> time for a cnbc news update with sue herera. >> here is what's happening. south carolina governor nicky haley calling for the removal of the confederate flag at the state house. coming in a special news conference minutes ago. debate has been growing since last week's deadly rampage at an
historic black church in charleston, south carolina. >> new details in the manhunt for two convicted killers in upstate new york. dna from both fugitives have been found in a cabin in owl's head about 20 miles from where they broke out of prison. >> new york senator charles schumer pushing for a consumer credit request alert system in an effort to fight identity theft. he wants the three main credit reporting firms to tell consumers when a loan or other type of credit is requested in their name. most victims don't find out they've been compromised until fraudulent loans are already taken out. >> authorities are investigating who is behind a cyber attack which grounded 1,400 airline passengers in poland. hackers targeted computers issuing flight plans on sunday at the country's national airline which is called lot. the carrier says no airline is safe from that kind of hacking. that it's cnbc news update this hour. back to "closing bell" and you
guys. >> that is scary. >> to be disruptive which they were. this is the year of the hack. it's everywhere. >> coming up the ceo of california pizza kitchen here at the new york stock exchange. we'll find out how he is adapting to the changing taste of americans for fresh, all nature ingredients. general mills made a move to take out artificial flavors. >> yeah right. car sales likely to post another strong month 0. what is driving buyers might surprise you. it could mean good news for the economy overall.
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it's not subprime loans. >> phil lebeau joins us with details. >> we had the folk 0s at equifax putting together numbers for us. take a look at the percentage of all auto loans over the last going back to 2009. in 2015 in the first quarter, that's the most recent data available. 23.9% were issued to those with subprime credit ratings. it's not a bubble. certainly when you look at the total numbers. 1.59 million loans were written to those with subprime credit ratings. that's about 34% of the new financing. it's not growing as fast as the market as a whole. on average when buying a new vehicle, the loanes for just
over $27,000. delinquency race has fallen. in another week we will get the numbers for june auto sales. what i am hearing from people in the industry, it was a solid month. these are annual sales numbers going back to 2009. in 2014 at 16.5 million the expectation is we are going to be at about 17.1 million or 17.2 million for all of 2015. most is driven by increased demand for trucks and suvs. this week general motors will be introducing its newest chevy cruise.
>> i would think this is good news, real underlying demand for car sales and not fuelled by cheap loans. >> i've been worried about subprime sector place. we know auto sales and housing sales are strongly correlated. how much might this be related to the strong housing numbers we've been seeing? that is interesting to explore. >> strength of the consumer there. how do you feel? >> we started to see strong activity in mbi. this is a mortgage insurer play. consumers with less than perfect credit, those taking out mortgages of more than 20%, more than 80% when they don't have 20% down obviously have to buy mortgage insurance. mbi is screaming higher now. it's up 5%.
that plays in some of the prime lending and longer term financing people are forced to look at. >> why are trucks so hot? i would have thought there would be pent-up demand for cars. now they are feeling freer to buy them again, but they are buying trucks. >> is it cheaper gas? >> not just cheaper gas. you look at the new full size pick-ups out there. >> there are no dogs in that group. they keep one-upping each other. look at nut f series. perfect example adding more content and people saying i'll pay 34,000 $45,000 for a pick-up truck. when you look at what general motors has done with colorado that mid-size pick-up truck which looks like what full-size pick-up trucks used to be that's red hot right now.
certainly, housing is a factor as well. the contractors want the trucks. >> i love pick-up trucks. >> i could see you driving a big old pick-up truck. >> ohio girl. >> news alert on an ipo announcement. >> i like pick-up trucks as well. my next car might be an suv. it's not just taylor swift doing all this stuff in the news today. we are watching with planet fitness on the ipo front. they will list their common stock on the new york stock exchange and the ticker will be plnt. jpmorgan bank of america merrill lynch, jeffries credit suisse among the underwriters. they put a place holder amount for $100 million. that is just a place holder
amount for registration purposes. we don't know the size pricing details or anything like that. another ipo to throw in the mix. this time more budget style gym called planet fitness. jackson we heard the taylor swift story. she wrote the love note to apple. they changed their mind on paying royalties over their new service. now lots of other artists are sounding off on apple's music service and change of heart on paying all artists during the trial period. >> we'll talk to motley crue to weigh in.
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general mills higher after the company announced it would get rid of artificial flavors and colors from all its cereal brands by 2017. if they do that with lucky charms it will be an empty box. >> it is a very trendy announcement these big package food companies are making. you hear it day after day. you are hearing it from the taco bell pizza hut, yum! brands of the world. panera did it a few weeks ago. kraft food. this is part of a growing trend.
>> now it's changing how food itself is growing. morgan entrepreneur nan is in the heart of newark new jersey. probably not the first place you would think of when it comes to farming. we are called the garden state, aren't we? >> fair enough we are called the garden state. i'm inside a former night club turned research lab for aerofarms. they are doing it in a former steel mill. this is watercress. it is germinated from organic nongmo seeds. it is grown with a nutrient mist under l.e.d. lights and sitting in cloth made of recycled plastic bottles, for which the company holds a pattern. some use coconut husks. with vertical farming, it's all done in tiers like this inside
buildings. in many cases without any soil or sunlight. here at aerofarms over the course of two weeks, the watercress goes from seedlings to this. a product that is once aerofarms site is up and running will be packaged by machines. it's still a nascent industry. represents less than 0.5% of the salad greens market. whole foods partner with vertical farms like this one. not like this one, but vertical farms around the country. >> fascinating. great stuff. change the operative word in the food business of late. joining us to talk about consumer trends we welcome to california pizza kitchen's ceo gj hart first on cnbc. he brought a lot of samples, as
well. this is a period of time where consumers are very much in charge. they demand freshness and change. you guys are working hard trying to meet that demand now, right? >> we are indeed. it's what's important to us is providing the best quality food you can. food that is easily understandable. fresh and seasonal ingredients. ones that provide good nutrition. in addition it's transparency about what you are doing. many of these products it's easy to see what's in there. >> how hard is that to change a consumer perception of your brand which is pizza? which may not be very good for you. >> ingredients on pizza is what matters. it can be bad, but it's what you put on it. if it's all vegetables it's one thing. high fat meats is another thing. we do way more than pizza. it's less than 1/3 of our
entrees are pizza. >> over half this food is not pizza that you can buy at california pizza kitchen. >> that's right. what we call our next chapter. it's our 30th anniversary, we are transforming all our restaurants and adding halibut we cook off in a pizza oven or u.s. ribeye steak with pinot noir sea salt or roasted chicken. different than a mushroom sausage and pepperoni pizza. >> what does this do to the cost of ingredients? >> food inflation is here. you have to reflect that. we are not dependent on any particular protein we have a lot of flexibility around pricing. we try to maintain and give the guest the best value we can. >> you are not alone in making these changes. at what point do you have this brand creep? pizza is in your middle name
but there are other companies having to change their menus so drastically they are straying a away from their original intent. >> we are taking the soul essence and bringing it forward. with ingredients, it's having the highest quality we can for the guests. >> soupcon. >> do not change the barbecued chicken pizza. >> that's one of our best-selling pizzas. >> thank you for join us today. up next motley crue's nexticky sixx will sound off on the taylor swift controversy.
well the story of the day i would argue taylor swift helping convince apple to change course and pay artists during its free trial streaming music period. last night nikki sixx from motley crue tweeted "hey cue, thanks for hearing us. you understand artists work has value. i was pulling my songs but now they will be heard on your platform. >> and joining us right now on
the phone is mr. sixx himself, nikki sixx. >> dr. j is so excited. >> i just love to hear bill say mr. sixx. >> hey, nikki, thanks for joining us. who do you think -- what did you think of apple's idea of not paying you guys or any artists the producers, anybody else during this three-month period? a bonehead play obviously, right? >> well first of all, i want to say that i've always been a big fan of apple and their platform and what they've done for artists but sometimes with technology as things are moving things get lost. they just kind of get lost in a wormhole. they get overlooked. and so i'm going to hope that that's what happened it wasn't an old record company trick, an old business. but they did the right thing. we've been in negotiations for about 12 days behind closed doors trying to get this thing right.
and when taylor sent that open letter it really was the final -- i guess the final message that they needed to hear to realize that they were not doing the right thing. and i understand what they're trying to do. but the facts are laid out something like this. you have artists that are coming out that if they're streaming the music for free and they're not getting paid for it people are already hearing those records and then later you're trying to ask the audience to go purchase those records or get revenue from other streaming services when the hot point, the 90 days is already over. so that's a great value for apple, not a great value for the artists, the producers and the record companies. hence us saying, well you can't have our work for free. you know they don't work for free. you don't work for free. i don't work for free.
i think it's just a matter of keeping the ecosystem friendly and fair. >> and we don't get iphones for free as taylor swift correctly pointed out. nikki, what do you think of the fact this streaming music industry has got zone crowded? pandora, spotify is the market leader jay-z has a competing service. do you think apple's mere entry and the fact it's willing to work with artists here is going to make it the dominant player? or is there room for all of these different competitors? >> i mean they're the biggest business in the world. if you look at it that way, they do have an upper hand. are they the first with this technology and this idea? absolutely not. can they build a better mousetrap that's more artist-friendly? we would hope that everybody's moving towards that. you know here's the concerning part. when you're a company the size of apple and you have $200
billion in the bank simply on your interest alone you're making $10 billion. now, $10 billion is more than most major corporations make. so for them to not want to pay the artists 90 day streaming service is concerning to artists. and here's the other thing you guys need to understand. >> quickly, nikki. >> is -- excuse me? >> go ahead. we're running out of time. i just wanted you to make your final point. go ahead. >> okay. when you have artists, multigenerational artists, that's what apple or any music service needs. in apple's case they're selling iphones. so you're going to want to have a motley crue or an elf costello.costelloelvis costello or taylor swift. you want to keep that friendly for the artist so we can keep that together betterment also of the new artists. and that's what we should really
be talking about is the new artists. >> nikki, we appreciate you calling in. very insightful and we appreciate you making the effort on that as well. thanks for joining us. >> thank you guys. >> nikki ix of motley crue. >> mr. sixx on "closing bell." >> we'll be right back. verizon say neversettle. t-mobile agrees. never settle for verizon's overpriced gimmicks. try the un-carrier risk-free for 14 days you'll love it, or we'll pay for you to go back.
it seems these days the battle for your living room is raging like never before. kate rogers has a look at one l.a. startup that is not backing down from the fight. >> adam johnson's startup toggle manufactures streaming-enabled devices for retailers to deliver content. the company was born out of a warner brothers accelerator program, meaning it has a relationship with an industry leader. >> instead of having to ask yourself what service is featuring the movie tonight, whether it's on netflix or hulu or youtube or where can you find it we make available all the newest and latest releases in one place. >> the company's managed to land its first deal with the world's largest retailer, walmart, creating a custom device for them called the vudu spark, which allows consumers to access walmart's video on demand
service. >> you plug it into the hdmi port of your television. you immediately can start browsing movies and shows featured in the vudu movie platform. >> the device also represents a simple way for walmart to convert its dvd customers over to streaming. and while toggle may be taking on competitors like roku or chromecast johnson says the business model is what makes them a standout. >> our biggest differentiator from a company standpoint is that we partner with the distribution. we can actually be featured really prominently within a walmart or within whatever partner that we're working with. >> toggle has three adpigs digsal deals in the works this year. so as the streaming wars heat up the startup is well positioned to compete. >> all right. thank you, kate rogers. that does it for us on "closing bell." see you tomorrow. "fast money" starts right now. and hello, everybody. "fast money" does indeed start right now. we're live from the nasdaq marketsite over