anything ahead of us that will stop us. >> all right. thank you much. >> thank you. >> we are going out with a gain of about two, three points. [ bell ringing ] we needed to be up five to hit an all-time high. the s&p, another all-time high. what do you know? stand by. the second hour of the "closing bell" and the netflix numbers right now. ♪ it's 4:00 p.m. on wall street. welcome to the "closing bell." i'm kelly evans in today for maria bartiromo. >> and i'm bill griffeth. another record day for the s&p. it doesn't look like we'll get one for the dow. here's how we're finishing the day. the industrial average needed to be up five mounts. we're not doing that. hello there. mcdonald's, the drag there, taking about 19 points out of the dow today. it's one of the dow components after the earnings disappointed this morning. the s&p looks like we will have another all-time high there. and the nasdaq, technology, one

of the bright spots today, nasdaq up 12-plus points. we're still about a 13-year high for the technology-heavy composite there. kelly? >> the focus shifting immediately to netflix. earnings there are due out shortly. until we get them, let's break down what happened on wall street. joining us now, jim moffett, jeffrey from raymond james and michael from destination wealth management. gentlemen, thank you for joining us. >> thank you. >> jim, let's start with you. look, thoughts on the day. we've seen this theme now for a couple of trading sessions, where stocks are actually paring their losses throughout the session. does that tell you real money isn't participating here? >> -- i think the trend is going up both in the united states and

around the world. >> all right. i'm sorry, jim moffett, i have to interrupt you briefly because we have netflix numbers. julia, how do they look? >> well, bill, earnings per share coming in better than expected, coming in at 49 cents per share. that's up from 11 cents in the year-ago period and beating analysts' expectations. revenue right in line with projections at 1.07 billion. another key number is the total number of members in domestic streaming. the number for q2 is 29.8. that's sort of the midpoint of the guidance that netflix gave last quarter. and then, the other key number here is the number of paid streaming members. that is 28.62, and that is at the high end of the guidance the company gave last quarter. but it is a little bit less than what wall street analysts had been expecting. another key thing here i want to point out is that the company free cash flow swung to positive.

there was $13 million in free cash flow. the prior three quarters did have negative free cash flow, so that's a positive. we're going to continue to dig through here and i'll be back as soon as i get more, bill. >> all right. thank you very much, julia. let us know anything else you hear. let's bring in our analysts on this one, as you see the stock sort of zigging and zagging and coming off the lows now, down about five points in the after hours. mike of piper jaffray, david pearl of epic investment partners and ed williams of vmo capital markets is with us here at the big board. anything you heard of note from her just now? >> i think the key thing for me is that the -- you know, looking at the earnings numbers, the subscriber numbers, they came in line, or better than what we were looking for. you know, what would be helpful to get a sense on is the outlook, looking into the september quarter. >> yeah. guidance is always key here, isn't it? >> yeah, david pearl, what about you? >> well, we have a different take on it, frankly. we look for companies that is sustainable competitive advantage, and generate profit

from that. and this company, it's a bit of a conundrum. they don't control much of their content. they don't control the distribution. and up until at least this quarter, we'll see, they were cash flow negative. so actually, they have to borrow money to continue to grow. so we have to think about the valuation in terms of the opportunity here. because you can sell a dollar for 90 cents. we really have to see if the value proposition is such that they can make money as content costs continue to go up versus the revenue. >> right. yeah, what about -- we see the stock is coming back here, now down 3%. mike olson, what about that? in your view, is it too early to tell whether "house of cards" has been a success, especially given the tremendous response from the emmys over the weekend? >> yeah, i think the company's going to get a free pass on the near-term numbers in the sense that people want to see subscriber growth, but they're also going to understand that some of the original programming isn't going to translate

immediately into new subads, so they'll have multiple shows coming out. so far batted essentially .1000, and we'll have to see over the next few quarters how that plays out as far as new shows coming and whether they are able to attract and reduce subscriber churn. >> shares are now down about 4%. julia, still looking through the earnings release. anything more you can tell us? >> reporter: well, something just to weigh in on that comment about subscriber additions in the commentary here, in the letter from ceo hastings, he said that arrested development had a strong -- because of its strong brand and fan base, generated a, quote, small but noticeable bump in membership when it was released. it said none of the other show has that noticeable effect in their first season because they're less established. apparently, of the four shows to companies so far, that one was the big impact here. there is some news in here, the company says it will be expanding its original as initiative to include, quote, broadly appealing feature documentaries and stand-up comedy specials. that's in addition to, of

course, the types of series like "arrested development" and "house of cards." looking at the q3 guidance, they are projected domestic streaming members between 30.5 million and 31.3 million. of course, that's up from 29.8 million. and of those, the paid members are expected to be at most 30.1 million. now, looking at their project n projections for q3 earnings per share, there's a pretty wide range here. they say it will be between 30 cents and 56 cents per share. so very, very wide range in terms of eps. and i'll continue to dig through and see what else we can find. back over to you. >> ed williams, you grabbed your notes. how do they compare with what you were expecting? >> looking at the guidance, the september quarter, generally speaking, i think we're kind of closer high end of the range of what they're looking for. but it's -- you know, to me, it seems fine. the key thing at this stage is once you get your subs, it's matter of the ability to keep them, keep the churn low, and

actually then drive that profitability for the business. >> the increase in production costs, does that worry you? >> it has to. like, one of the key things is that the -- the company has to spend mervly on this content. and you have to make sure it's efficient what they spend. one of the things we have to keep an eye on is making sure they're able to get a decent return on the investment. >> are you surprised "arrested development" seems to be one of the key factors behind the subscriber growth? >> to me, no. because i think it's a known entity. if you look at who's actually out there, who's aware of the content, "arrested development" is something people knew about, and that season four is available exclusively on netflix. it doesn't strike me as a surprise it would lead to a bump. >> mike olson, we talked earlier about the strategy they're pursuing could be considered hbo-light s that a good idea in your view? is it a fair analysis, as well? >> yeah, i think it's fair. they're pushing that direction, like julia mentioned, doing some unique originals in the future, it sounds like. and i think what it translates into is you get into kind of a

maintenance mode of content spend for some of the nonexclusive or older tv series and movies. and if that happens, and they're able to kind of take all of the incremental content spend that they're pushing into, you know, original programming, if it continues to have the success that it's had, then that can definitely be positive for retaining subs and adding to subscribers. >> david pearl, what do you think about netflix trying to innovate with regard to the earnings release itself? the stuff they're doing today, the stuff they've done throughout time? is this because they view themselves as a company that innovates across -- across the sector? or, you know, as an investor, do you like that, or is it frustrating? >> no, investors like transparency, and this clearly does not aid this, because the questions are selected by the company, so it's not a really live q&a. it is not what we would prefer. i have nothing against video, but you need to have live questions. it's being hosted by an analyst who has a buy on the stock. so, you know, it just doesn't

feel right to us. you know, a lot of the metrics we used to use, separating out some of the dvd versus streaming business is also less transparent than it used to be. >> right. well, i tell you what, let's bring julia in. you'll be a part of the conference call. what do you think? >> that's right, bill. i want to clarify. the company is not selecting the questions. in fact, they have no idea what questions i and richard greenfield, who is an analyst, will be asking. we've solicited questions via e-mail. e-mail me or tweet m me @jboorstin. we've gotten a flood of questions, especially today. and we've seen a lot of overlap in the question topic, but we are going to try to address every single topic and sort of the variety of question that has been raised. so the company has no input in what questions are asked. >> okay, david, what about that? >> well, you know, it's better than nothing. but it is not the same as a realtime answer to a direct question. so, you know, we'll just see

how -- >> what's your biggest -- what's your biggest question for netflix? >> well, to me, it's a treadmill. if they become, like, hbo, they're going to have to increase original content costs, which is extremely expensive. and, by the way, up till now, they only have a window with each of these series. so they only own "arrested development" for the first window, then they have to repurchase. so it's an expensive proposit n proposition, and the real question is, can they become a truly profitable company looking at free cash flow? and we're not clear on that. >> well, there's a question for you to ask, julia. courtesy of david pearl. we'll take a quick break, we'll be back with much more on netflix and the day in the markets, coming up in just a moment. stay tuned. looking at covered call strategies to generate income? with fidelity's options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator...

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let's get right back to netflix, watching the stock whip around after results out a few minutes ago. julia boorstin has been combing through the report. julia is co-moderating the conference call in just a few minute, which you can also follow on cnbc.com. julia, a couple of thoughts on why shares are trading down sharply? >> reporter: well, the earnings per share did come in better than expected, 9 cents better

than expected at 49 cents instead of 40 cents. i think the reason why the stock is trading lower comes down to the q3 guidance, and the fact that they're not anticipating that dramatic subscriber growth, and perhaps most important, the fact that the eps expectations are very wide range. the company says earnings per share in the third quarter will range between 30 cents and 56 cents. that's a very wide range. it's not atypical of netflix, but it's a wide range and indicates potential instability in the quarter. and the company says that the most domestic streaming subscribers they would see at the end of the next quarter would be 31.3 million. now they have 29.8 million. so that's -- that's less than 2 million additional subscribers. so there are various factors at play here. and the streaming subscribers did come in sort of at the mid or high point of guidance for this quarter. but i think investors are concerned looking forward to the next quarter. >> let's talk about the conference call itself. david pearl, you mentioned some

frustration on your part, the format and whether or not your questions will be asked. what about you, ed? are you concerned about the information that will be imparted in a conference call like that. >> it certainly is an unusual conference call. and i think looking at -- you know, we'll find out, and i think as david pointed out, part of the challenge is you can't ask a question and get the unburnished reaction. we're relying on an intermediary. the key thing to julia and rich is to follow up. that's something different they'll be able to do that we otherwise couldn't do. they can grab and answer and dive deeper into it as it's appropriate. >> are you able to do that, julia? sorry. >> reporter: yes, they've told us we'll be able to ask follow-up questions. we certainly intend to. one thing i'm curious about is how much time total we'll have. we do have a lot of questions here. it sounds like they're setting aside 45 minutes for the call and it will be interesting to see how quickly we go through the questions, because we do plan on asking follow-ups.

>> mike, how effective -- we all kind of joke about analysts' calls, a lot of times anyway, the kind of great quarter guise, the scenario, the analysts chosen to ask the questions of the company. is there as much concern about the old way of doing things as the new? or is there just more questions again about why netflix is pursuing this route? >> yeah, i mean, i think the preference would be that analysts are able to ask questions live just so you get that kind of back-and-forth immediately. i think ultimately, though, you're asking earlier what key questions are. i think the key question is an unanswerable one, which is can you continue to bat .1000 on original programming? and that's really the question that we have, and i think a lot of investors have, and that's going to be a key component of the success for netflix over the next several quarters and several years, really. >> another question there for you, julia. why are they doing it this way? let's all recall, it was reed hastings who got his wrists slapped for what -- a facebook posting when he put up

information about the company, some people cried foul, and the s.e.c., they had to kind of modify their rules on how information -- material information about a company would be disseminated to the public out there. so why this format for the conference call? >> reporter: well, i've asked them that, and i intend to ask them that again today on the call. and they say it's because they just want to make it a more open call and bring in a wide arrange of investors, and in a traditional conference call, you have analysts asking the questions. that leaves out a lot of people. it leaves out everyday investors who have e-mailed us questions, people who may own 100 shares, and want to know where the stock is going. and leaves out the category of hedge fund positions, who maybe want to short, or they don't want to reveal what their position is with a pointed question. so those people now can feel comfortable e-mailing in questions that they might not want to ask otherwise. >> david pearl, do you want to respond to that? >> well, again, we'll just have

to wait and see. again, there's no question the current standard is that the company basically orders the call. so they have some discretion about who gets to ask a question. which is suboptimal, as well. but on the other hand, you really would like a trained analyst, who has gone through the numbers, to be asking the question, no offense to cnbc. but it would be just more in depth directly from the analyst. >> well, you do have an analyst co-hosting this thing with you, julia, right? >> reporter: that's right. btid's rich greenfield. one thing i want to point out, and i have gone through -- i will continue to go through the numbers and do have some experience reading these reports, is the fact that a lot of the questions that have been e-mailed in are on the same note. we're getting a lot of very similar questions, and it's -- i think we will be able to address all of the major topics. and there isn't a massive amount of variability between what

people want to hear answered. so i think that we will be digging in and we will be -- it's just my job as a journalist to ask questions, so i hope to be able to do that coming up in a couple of hours. >> we're with you on that one. gentlemen, this stock is the best performing component of the s&p 500 so far this year. up 184%. i mean, by far it's the best performer. ed williams, should it be and how do you view the stock? go around the horn very quickly on whether you would buy the stock at these levels, or not? >> to me, it's a little too rich. it's a great company, but they have a valuation that's not warranted right now. >> okay. david pearl? >> yeah, to echo ed, it has the valuation of hbo just about right now. and it's near -- not nearly as profitable. so again, it's a great company. it's clearly popular. the question is, can they make money, and again we look at free cash flow, it just hasn't been there. >> mike olson? >> yeah, the valuation is steep, but it's also, you know, by far, the best online video service provider.

and i think -- i hate to keep harping on the original content theme, but i do think if they continue to do well on that front, it'll basically give them the leverage to potentially increase pricing, and if we look at a price increase in 2015, you know, even way out there, a dollar price increase, it can materially increase the earnings per share. >> okay. shares are off about 5.6% after hours. mike, david, ed, thank you very much for your time. julia, we know you have to go. appreciate all of your thoughts. julia will be co-moderating the call starting about 6:00 p.m. eastern time. you can catch all of the action on our live stream, as well, at cnbc.com. >> an interesting experience, experiment, too, by netflix. all right. more coming up. >> that's right. barney frank. he may be retired from congress, but he's not actually shy at retiring. the law that bears his name takes arrows from both sides of the aisle. up next, he goes to bat for dodd-frank, and what it will ultimately mean for banks and businesses. plus, we'll get his reaction

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pounds, 6 ounces. the duchess and her son, her new son, the new king, future king, apparently resting well. they'll stay in the hospital overnight. prime minister david cameron came out and made a statement saying it is wonderful news, a very important moment for our nation. and the palace has said the last time the prince will be known as the prince of cambridge. the last time there was a prince of cambridge was in queen victoria's era. it was queen victoria's brother. it's the last time we've seen a prince of cambridge. we'll get a formal notice on the name in coming days, according to the palace. now, the betting is as to whether or not the duchess will go with a more modern name or because this child is now third in line to the throne, whether or not they will remain traditional and put three or four names together in the naming ceremony. that remains to be seen. they are putting odds on that now. that's the new -- the new bet being placed around the new and future king.

guys, back to you. >> you were too quick for me. i was trying to google victoria's brother's name. what was his name? do we know? >> we will ask the almighty google. >> the perfect nod to that. >> the pressing question of the baby's name as well. >> thank you, sue. this week marks the third anniversary of the dodd-frank law. progress has been slow, but the next few months could be an absolute whirlwind. kayla has the details. >> reporter: a natural segue out of the royal baby. glad to do that. we're talking dodd-frank. among the things that have been implemented, the statute of limbations extended to six years from five. that will put steve cohen potentially in the cross hairs. but some things that haven't been done since washington vowed to fix wall street with the act. in the three years, regulators have written 14,000 pages, finalized 155 rules, 243 still set to be written or finalized.

only 39% done so far. here's what that 39% has looked like. roughly 4,000 pains a year, steady progress from ground zero. in year one, consumer financial protection bureau was formed to coordinate against predatory lending practices as well as new rules to keep governing some banks there. in year two, banks submitted the first living wills to liquidate them instead of bailouts in the next crisis. in the next year, year three, strict capital rules, hope to keep banks more liquid, so there are a few tenets that happened. we know treasury secretary jack lew said last week that the core of dodd-frank will be done by year end as hundreds of more rules and a few priorities that it will be tangled web to finish. here's why. look at the three rules. they'll require no fewer than eight regulators to finish a lot of the skin in the game proposal is a -- risky securities to 5% of the risk. seven regulators will need to agree on that. they will also need to agree on

the trillion dollar swaps and derivatives market and the way that operates. finally, the volcker rule, the big kahuna, how to eliminate the risky trading. the banks are the ones clamoring onto the calendars to be heard. the sunshine foundation calculates a thousand meetings between the five big banks. goldman sachs tops the list. 222 meetings between goldman executives and washington regulators on how dodd-frank shakes out. an uphill battle. five months left. a lot still to do. bill and kelly? >> wow. >> yes. a lot to do, obviously. kayla, thanks very much. so three years after dodd-frank was signed into law, details, as you saw, are still being worked out. critics continue to question whether it will prevent the kind of risky behavior that caused the financial crisis of several years ago. >> and one-half of the duo that wrote that law joins us with his take on the law and its critics,

former massachusetts congressman barney frank. congressman, thank you for joining us. >> welcome back. >> thank you. >> we want to start out with the news that kayla mentioned there. is it the spirit of this law -- do you think it should be the case that this particular example of s.a.c. should be included when they extend the statute of limit achesations of years instead of five? >> you're asking me a technical-legal question, and i don't know enough of the facts to answer. obviously, i am for extending the statute of limitations, we put it in the bill. these things take time to uncover. but as to its application in a particular case in a particular set of fact, i'm not competent to tell you, because one -- one of the advantages of the time is i don't have to follow this as closely as i used to. >> one of the controversial parts of that is they would extend it back retroactively. was that the intent of

dodd-frank, to be able to do that? >> it was our intent, yes, extend it back as far as it could go. that is -- there was some constitutional limits on what you could do retroactively, but it was certainly our intention to go back. our general sense was we were significantly, as a government, under-enforcing rules requiring fairness and openness, and, yeah, it was our intention to be as tough as we could constitutionally be. in a particular situation, how that applies, as i said, i would need more of the information to say. >> right. congressman, do you think that, in general, that regulators have all of the tools they need in these cases? does dodd-frank go as far as it needs to in that regard? >> i think it probably does, although there may be new things. but, no, they don't have all of the tools they need, particularly one of the big things we did was to give them power over derivatives, particularly swaps, financial at the riv tderivatives.

that had been taken away by phil gramm, and the clinton administration went along. now they have the authority to regulate derivatives. the problem is, the republicans, when they took over the house in 2011, substantially reduced the funding we needed to give to the kmod at thes future trading commission. they have been hobbled. so, no, they don't have the tools they need. gary gensler is a very abled guy, and we would -- i was worried last week when there was this effort, or two weeks ago, to weaken our bill with regard to the regulation of derivative activities by american banks in their overseas financial subsidiaries. and gary gensler and the administration hung tough and that was a major sign that this is going to be done well. but you mentioned one then that i'm glad that you did, and it's too often ignored, and that is the skin in the game. the single biggest cause, i believe, of the crisis, and people like michael lewis and others have documented this, is people began to make loans without being the ones who were going to be repaid. you know, 40 years ago, almost

all of the loans were made to people who had to repay the personal man, and if i'm lending you money, i'm going to frisk you pretty good before i do it. and we have securitization, people can make loans and have no further concern. we mandated in that bill that if you're going to securitize these loans, you're going to take a percentage of the loss. i think that's the single best thing we did, and that's one that i'm hoping they will be very tough about. >> as well intentioned as that is, has there been unintended consequence in that we keep hearing anecdotally that banks are still reluctant to lend nearly before they did, and it's nearly impossible to get a mortgage without jumping through fiery hoops, and in many cases, it's because we hear the banks have to have skin in this game here. >> yes. in other words, people are complaining that banks won't lend them money -- >> right. >> -- if they're not -- if they don't think they can be repaid. i take credit for that.

thank you. >> okay. >> you say they're not lending as much as they did before. i hope so. it was -- by the way, one of the things we did in this bill was to flat-out ban, in effect, by making them unenforceable, the worst kinds of loans. if you have looked at what happened in the last three years, you have not seen the kind of bad loans, irresponsible loans bad for the borrower and lender. we did need to do discipline. i'm not telling bankers how to run the bank. but if they don't have a high level of confidence that the loan won't be repaid, yeah, they shouldn't make it. >> congressman, i want to ask you about an important issue, one that elizabeth warren said she was going to reintroduce a bill to repeal glass steegal -- i'm sorry, to reinstate glass stae gal. are you still against this idea, this idea of reintroducing glass-steegal? >> yeah, i -- we got the bill for this reason. it doesn't do anything about what i just talked about. under glass, it was perfectly

legal, in fact, it was in effect when they started doing the 100% securitizations. in the '80s. it doesn't affect derivatives. one of -- the point of glass-steegal, it will only let banks do certain things, but very damaging things were done outside of the banks. aig was not a bank. it would not have been affected. much of what we did was put regulation on derivatives, and to ban and to require the risk retention. now, one of the things we're told is, well, we have too big to fail, and that, i must say, i have a challenge for people. >> okay. >> i ask them to look at every bailout that was done -- george bush initiate, but i supported them, in 2008, and see if they could be done today. the fact is our law makes illegal, impossible every one of the bailouts that happened in 2008, without a new act of congress, which i don't expect. secondly, they say, well, if a big bank failed, inevitably,

there would be pressure to bail it out. no, there would be pressure to shoot the people. the american public is not in that mood. we do see in the bill that if a large institution fails, we will abolish it, liquidate it, and then have the federal officials step in and deal with the consequences. but if in the course of dealing with the consequences they have to spend any money, they are mandated to get it back by assessing the largest financial institutions. >> all right. two things. one, just clarification on glass-steagall, the insured deposits and the money put at risk, whether it's investment banking or whatever, we did ask jack lew at a cnbc's delivering alpha conference last week, about the too big to fail issue. let me get your response to what he said about that. >> i think there's a shared goal between what i'm saying and what many of the senators are saying, which is that it's unacceptable to be in a place where too big to fail has not been ended. and one of the things, i guess, i would say is any efforts to

delay or dilute the implementation of dodd-frank, if we get to the end of this year, and we cannot with an honest straight face say that we've ended too big to fail, we're going to look -- have to look at other options. >> what do you say? >> that we have -- >> what other options are there? >> well, you would have to ask jack lew, because he's the one you're quoting. i'm telling you that we did end too big to fail. here's the confusion people have made. there are always going to be institutions, even if you split every one now that's in half, or in thirds, there will be institutions which if they couldn't pay enough of their debts, that could cause problems. so we do recognize that there are some institutions that are too big to be ignored if they -- if they fail. so what the bill says is if said institution comes up, whether it's aig again, or any other, the first thing that happens under the law is it is dissolved. it fails. there are death panels in our bill, but they're not for old ladies. they're for big banks.

they say the board of directors are gone. the shareholders are wiped out. executives are fired. at that point, the fdic, which liquidates banks in america, steps in, one of the toughest bench regulators, helped to write this law, and she then -- or her successor -- liquidates the bank, if it requires some funding to keep the nonpayment of debts from spiraling into a negative for the whole economy, there's an assessment that's mandatory on financial institutions that have more than $50 billion. so i would ask people, some have said -- i was asked earlier today, well, what if large bank x failed, wouldn't it be overwhelming pressure to bail it out? no. in the american public today, there would be overwhelming pressure to take punitive action against the people responsible. >> right. >> so i don't -- and then people, say, well, split them up. but be honest, if you look -- look, the precipitating cause of the crisis last year was -- or five years ago was laming brothers.

if you're going to bring everybody down to the size of lehman brothers, you'd still have a problem. >> yeah. always good to see you, mr. frank. thank you. we'll see if -- >> you're welcome. >> hopefully, we'll have you back before the thing is implemented. jack lew said it will be by the end of the year. >> i have a feeling we'll have plenty of time. turning our attention back to netflix. shares are down 6% after hours. they've been moving around on the earnings announcement. the low is a little bit more than 6%. but still a hit, and that's got people taking a look at the subscriber numbers. >> the beat on the top line, 49 cents versus 40 cents. revenue was right on the money, 1.07 billion. but it's the guidance that julia boorstin that has some people troubled, they widened the expectations for the third quarter. we'll have more at 6:00 eastern time on cnbc.com, with the conference call that will be co-hosted by our own julia childs -- or julia boorstin. bon appetit. >> she won't have the french

cooking tips. it's all relative according to a new survey of the rich. it takes at least $5 million today to be considered wealthy. yeah. we'll talk to the man behind that survey next. >>. >> and later, you won't believe your eyes. this 5-year-old girl who was left home alone goes out on a ledge of a high-rise apartment building in china, needs to be rescued. stay tuned for what happened next. it's an amazing story coming up. , tdd#: 1-800-345-2550 then schwab is the place to trade. tdd#: 1-800-345-2550 call 1-888-284-9410 or visit schwab.com/trading to tdd#: 1-800-345-2550 learn how you can earn up to 300 commission-free online trades tdd#: 1-800-345-2550 for six months with qualifying net deposits. tdd#: 1-800-345-2550 see how easy and intuitive it is to use tdd#: 1-800-345-2550 our most powerful platform, streetsmart edge. tdd#: 1-800-345-2550 we put it in the cloud so you can use it on the web. tdd#: 1-800-345-2550 and trade with our most advanced tools tdd#: 1-800-345-2550 on whatever computer you're on. tdd#: 1-800-345-2550 also, get a dedicated team of schwab trading specialists tdd#: 1-800-345-2550 who will help you customize your platform tdd#: 1-800-345-2550 even from the comfort of your home. tdd#: 1-800-345-2550 and talk about ideas and strategies, one on one. tdd#: 1-800-345-2550

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you may have blinked and missed it, but the s&p 500 closed at a record high, and the dow is a few points -- narrow range today, we should say. how is volume, how is breadth? >> i know that -- i wanted to show you texas instruments before we get to the overall markets. i know you are working on netflix. we had texas instruments. and i don't have the report, but it looks like a great number. up 58 cents. i have 41 for the estimate. 3.05 billion. i have 3.06 billion. for revenues. so at least on the bottom line, this looks like a significant beat. as you can see, the stock is trading up in the after hours. we are very close, if not at a 52-week high on texas instruments. putting up the s&p. kelly is right. third day in a row. not spectacular number-wise, in terms of a percentage gains, but

every day new highs, money keeps coming in. last week, inflows in mutual funds, the highest since the beginning of january. so money is coming out of bond funs and into stocks. if it's not a great rotation, it's a minirotation, folks. still doing fairly welch the big story this quarter has been financial stocks. the bank stocks, all had spectacular numbers, and every day they keep moving up. there's the big winners. techs are a little disappointment. industrial stocks, they've been doing okay. we had dover last week. we had ge do pretty well. lennox, heating and air conditioning, all over the united states, the individual numbers today were spectacular. let me just mention very quickly, the gold situation moving up rather dramatically. gold broke a trend line today. weak dollar helped. we have a nice move up in the other commodity names, as well. guys, back to you. >> all right, bob, thanks very much. you know, we have these debates about what's middle class anymore, right? now we're asking what is wealthy. that's a key question being

asked by ubs in its latest investor watch survey. according to the report, 77% of investors surveyed with more than $1 million in investable assets do not consider themselves to be wealthy. >> it's incredible. mike ryan from ubs brings us the exclusive report, and also joining us is the wealth i'd eter robert frank. mike, really, a million dollars? people don't think they're wealthy with that amount of money to invest anymore? >> i think, kelly, it's what we got from this survey is define wealth differently. they don't look at the asset level. they look at whether this will give them the ability to be unconstrained in terms of the financial choices they make. it's not the amount of money. it's are they comfortable they'll be able to do the things they want to do through the rest of their lives. >> the buying power. robert frank, you covered the wealthy for us. who are these people you cover? what's the benchmark you use? >> you know, the survey shows that no matter how wealthy you are, it's always twice your own level. if you're worth 5 million, it's 10 million that's wealthy.

what struck me about the survey, the cash holdings among the wealthy are still huge. 23% of the holdings are still in cash. we thought once we're at that -- at this point in the market, that they would start investing. what is holding all of the cash on the sidelines for the wealthy? and, mike, do you think they're going to start putting more into the market, or is this a permanent result of the cries nice. >> i wouldn't say it's a permanent result. what i would say is the way they view cash and engagement is different. for example, we are seeing investors reengage. they are putting money back into the money markets. they're taking on more risks. what they're doing is keeping the buffering cash, the barbell approach. the view is, i want the safety and the security of knowing that my money will still be available in cash assets and liquidity, but i will re-engage. we think there's an opportunity, though, as we continue to go through the healing process, that some of the money will eventually be recycled out of cash and back into other risk assets. >> mike, i have to ask, at what level do people think they're wealthy? >> if it's not a million, what

is it? >> there's no specific threshold, but when they reach over the $5 million threshold, they feel more comfortable. going back to what i said before, kelly. it's not an arbitrary number. it's about the things they want to do with their lives. so this whole comfort level of not being dependent, making sure you're able to have the financial flexibility to do what you want. >> but $5 million, i think that's a little bit of the neighbor syndrome, right? relative to what your typical u.s. household that's earning $46,000 a year is able to do. i mean, the ability -- the distinction between able and wants, i think, is getting fuzzy here. >> and, again, remember, it depends on how you define your needs, wishes, wants. so someone in the middle income bracket is different than the $5 million or $10 million bracket. >> right. >> all right. interesting stuff. thank you. robert, thank you. coming up next, six flags entertainment says its 14-story texas giant roller coaster will remain closed until officials are assured it's safe.

this in the wake of a dallas woman falling to her death from the coaster on friday. the company had more to say on that as well. it had earnings today. we'll have the latest. and then, talk about high drama. the 5-year-old girl home alone, gets her head stuck in a window bar outside a high-rise apartment building in china. firefighters come to the rescue. a spectacular story coming up after the break. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪

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this is exactly why you should not leave children home alone, as if we need to remind you. this weekend, a 5-year-old girl in china, who incredibly was left in her apartment without any parental supervision, climbed out that window more than 200 feet above the ground and got her head caught between the bars and the window -- of the window grill. luckily, a neighbor and firefighters came to her rescue. as you see there, how high up that was. freeing her, no injuries. how lucky is that little girl? >> very much so. and in this case, you're glad she couldn't get her head out the other way. meanwhile, an unhappy ending for the 52-year-old dallas woman who went to an amusement park with her family for a day of fun and instead met her untimely death on a roller coaster. jackie deangelis has the latest on this tragic story. >> reporter: it was a tragic accident by all accounts at a six flags outside of dallas on friday. reports citing witnesses on the ride saying the 52-year-old woman who fell to her death expressed concerns about her safety before the texas giant

roller coaster ride took off. now, the incident is getting a lot of attention from park goers. they are concerned about safety. but, also, from wall street, wondering how six flags and its competitors will fare in the wake of this accident. now, six flags reported earnings that missed six flags and it's competitors will compare in the wake of expectations this morning, management citing the weather for the miss. on the conference call ceo jim anderson stepped up and addressed the accident out of the gate saying that management was at the texas park working through this. the park of course is open but the ride is closed. many analysts praising how the company handled this pr nightmare, others slightly cautious on the third quarter in case there is a drop in park attendance. >> we did adjust our numbers for the third quarter slightly. we were expecting roughly six percent growth for the quarter. we think its more like five percent now. that's just to be cautious. >> safety on rides is a concern.

a study of injury records show that 4400 children a year are hurt on rides and carnival attractions. very serious or life threatening injuries there are far fewer. still that this time a lot of questions are unanswered and the investigation kongcontinues. >> netflix came in above expectations on the bottom line earning 4 9 cents versus estimates of 40 cents. revenue was right in line. the outlook may have been a little soft. the stock is down about 8 percent. don't forget you can tune in an inoh, va tiff conference call. they're trying this out. you'll be able to see it on cnbc.com as our own julia boorstin will be on this call. you'll be able to tweet your questions to her or via e-mail.

she has plenty right now. they will be doing it at 6:00 p.m. eastern time on cnbc.com. >> wednesday could be the day that will determine the fate and future of detroit. details on the latest developments in the motor city's bankruptcy case coming up. ishares minimum volatility etfs. investments designed for a smoother ride. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. it's lots of things. all waking up. connecting to the global phenomenon we call the internet of everything. ♪ it's going to be amazing. and exciting.

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>> new developments now on the bankruptcy case of detroit. live from the motor city, scott, what can you tell us? >> kelly, a great deal of legal battling and wrangling going on right now. it all really revolves around the pension. the latest to weigh in, the american federation of state, county and municipal employees which represents about half of the city's ununiformed work force saying that unlike the private sector the city employees have no other safety net beyond their pensions. this is the latest volley in a legal process that literally could go on for years. a state judge, rose marie in lansing has ruled that the bankruptcyings unconstitutional because the state protects

pensions. she'll hear more arguments on that. the federal judge has set a hearing on wednesday that will be held here in detroit. like any hearing in a bankruptcy case it is crucial in terms of setting the tone. there are only two items on the agenda, the city's protection pro credited terse under chapter nine and a motion to halt all other legal action including actions in state court. once and for all but meantime there are also efforts to sway the public opinion, the city's firefighters stage attorney general informational pickets throughout the city today, insisting that those pensions need to be protected, that the city and the state need to keep their promises. bill and kelly? >> a story that we'll continue to follow all week. more on today's market, and what

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on cnbc.com co-hosting by our julia boorstin and tomorrow two big numbers coming out. >> of course we turn our attention to apple and who else do we get tomorrow? >> at&t will be reporting on our watch here on "closing bell.." >> lots to watch. industrials, materials, all coming up. >> that's it for "closing bell." thanks for joining us. >> "fast money" begins right now. >> see you tomorrow. >> live from the nasdaq market site in new york city's times square. i'm melissa lee. we are with pete najarian, guy adami. the top talk. netflix calling after reported earnings. netflix beating on the top and bottom line but guidance and subgrowth from weak. how should you trade after an 180% run this year.