Transcripts For CNBC Closing Bell 20140602

Judge who will be here with us live in a little bit. Captain wait to talk to him and get his impressions. Stock is not responding at all today. Look this, programming language is a fascinating one to discuss. Well go to the graphics, sorry, guys. Denials of wrongdoing are coming fast and emphatically after leaked reports that the government is investigating Insider Trading involving activist investor carl icahn, golfer Phil Michelson and noted gambler bill walters, plus billionaire mark cuban is now taking to twitter in defense of those in the crosshairs of the s. E. C. This is a fast moving story. Well have the latest on that coming up. Yes. Another important story. Cant talk enough about this right now. When the new normal in the Auto Industry is a sevenyear car loan, is that a red flag for auto sales . Why some fear that this is a sign that all of this could end badly, much the way housing blew up a few years ago. Phil lebeau will give us a full report. For the first three months amount of money we borrowed to buy cars topped 100 million, never borrowed that month in a threemonth period. And the demand is so strong. Thats whats driving a lot of this as well. It is the investors willing because of a reach for yield to pick up all sorts of, even, auto loan packages, a lot of the way the subprime loans were a decade ago. Heres where we stand in the market, head together close and the dow is staplinging a 21point rally this year. The s p 500 slightly positive and the nasdaq is off by 13, and, bill, i believe, s p and the dow were still on a new record high watch. You see the stutter step on the open for all three of the major averages. How much was this bizarre revision we kept getting on a manufacturing report from the government this morning. They had revised it twice. Twice. They got it wrong the first time, got it wrong the second time and finally got it right on the third calculation. And this after wall street economists looking through the data said basically, guys, this doesnt add up. Crazy, crazy, crazy. Lets talk about our day on wall street and closing bell exchange. Danny hughes from divine capital. Jeff cox from cnbc. Com and joe and Andrew Aarons and, of course, our our own Rick Santelli as well. Danny, moving into the month of june. They didnt sell in may and go away but will they change their tune in the month of june, as we were saying on friday . That was nice, bill. Actually if you didnt sell in may you were objection but this morning it was a little tricky, like you were alluding to before with the ism redo and then redo again, and once again another trust crushing government al redo, and so, you know, we were saying on the trading desk actually who got the high speed numbers on that ism release and did they get the corrected number, because if they did, they did very well today . But that aside, this is a big week for numbers. Yes, it is. Its about seven Central Banks reporting, and weve got big jobs numbers at the end of the week which is really important as well. Yeah, that number, andrew. Can we talk about that number for a second. Its got to be now what people are looking to, estimating we added, what, 200,000 jobs last month for the u. S. Economy and after the ism number was revised higher, its more consistent with an economy that looks like it has some momentum, perhaps sustainable momentum going into the year than one thats losing steam. Would you agree . I do. I think one thing about the ism numbers that everybody is really hoping for a really good number. I kind of liken the ism number to taking your child and teaching it how to ride a bicycle. Youve got the training wheels on. Youre letting the child go, and youre hoping that they can go well enough for you to take this thing off. Unfortunately the fed doesnt feel like it can just take the training wheels off but some more positive stronger ism numbers. They may get us there, but im hoping that they will get better. Taking the training wheels off one screw at a time, very, very carefully. Jeff cox, what do you make of todays market and this reading . When all was said and done, that ism, institutional supply management number was a pretty good number, wasnt it . Okay. 56 indcates expansion in the economy so i guess that thats as good as much as it stands. Goes back to the training wheels analogy which is very interesting. One. Things that happens with training swheels when you keep the training wheels on long enough that you get so used to having them on there you dont want them to come off anymore. Thats the story for the markets. Trade now is being fueled by three things. One thing, disbelieve that the economy is as good is as good as the consensus says it is. I think the other thing is the fed knows what its doing and number through, when the fed doesnt know what its doing anymore will want to get out in type. My friend rick once made the metaphor, when that point does come, it will be a room full of ralph crammedens trying to squeeze out through the key hole. How much are markets being pushed around here by developments coming out of europe . I think they are being helped by that. Europe is strengthening as well. Two years ago we were talking about a complete breakup of the european union. Obviously that talk is long gone, but i think the u. S. Economy stands on its own based on all the indicators, the numbers and low leverage. This week, if we see an historic move by the European Central bank to perhaps push their key rates negative, is that why the markets here are responding why they are, i respective of u. S. Data . They are rushing to safety over here . Well, i think that helps. Theres no question, and the europeans are trying to infuse capital and a little oomph into their markets, but i i believe with or without europe, the United States is doing quite well be a sent a collapse in europe. Rick santelli, so here we go. Month of june, what are you expecting here as we move into the summer timely . Well, you know, i think its very important to assess the jobs number on friday and to see which side of the last number it falls on because if we are looking for this big weather bounce, in my opinion we should be building on the last number, but well have to wait and see and well all scrutinize the Unemployment Rate because what it depicts is actually not happening. The drop in the Unemployment Rate is more respectful of issues within the economy versus positives within the economy, and last but not least, the guest who said two years ago we were talking about europe breaking up, well, sorry to say that its pretty much the big talk now. As to which countries are going to want to hold on to the euro, sand this going to give france strength because most realize that without the number two economy not buying into the whole emu story, it probably wont hold together, and france, based on the parliamentary voting count, doesnt seem too enthralled, neither does the uk, so i think the euro and the eurozone is going to be a huge issue whether they go into negative territory on rates or not, and the final question is an easy one. Globalization. Im sorry, but i dont see it. If europe gets off the track, it certainly isnt going to make the locomotive of the u. S. Economy run any better on its track. Rick, whats so interesting is like all the issues that youre talking about, after europe has done so well across the bond markets for the last couple of years, do you get the sense that all the flows are coming into the u. S. Because they feel its now a safer place to put money to work even if the ecb does more stimulus over there in. I dont think its a safer place argument. I think its a relative value argument. I think when you look at some of the rates in italy and portugal and spain, that those rates arent real raise and if you put them to a level, compromise of risk and reward, those countries may be insolvent so i think the flows here are greatly affected, a trend of lower rates that dont reflect the next natural fundamentals of many of the economies in europe. Danny, the last couple of months here of the Second Quarter weve seen a gradual shift in the stock market away from Growth Stocks and back to the defensive plays again. Where do you see opportunity right now . Where are you investing here . Its interesting because we said wed get away from defensive and into cyclicals and we went back to the playbook and started all over again with defensive. I think people are very well concerned, the firstquarter earnings, actual think they came in pretty well and people still see a drag. Productivity may be up but jobs are down. That still gets people nervous, but Consumer Confidence is at alltime highs, bill, and you have to think that 70 of the gdp is made up of the consumer spend, so it could be a very interesting second half. Im still invested. I have a little cash on the sidelines in case anything goes away, but im still invested in mostly the bigger names and dividend playing stocks. What about you . Where do you guys have money in this market, and do you worry about risks . I know i asked you about europe. Im going to list japan as well as a potential worry spot if were talking globally the second half. Year. Well, theres always risks and were always concerned about them and new ones that we havent even thought of will present themselves, but were generally positive on the equity markets. We think theres opportunity in manufacturing. We think health care is also a good sector to be in right now, and high dividend paying stocks, we think theres some real upside potential for for investors. Kelly, theres an interesting big picture number here, kind of the stat of the day here is because for the First Time Since november 2012 we actually saw inflows to bond and outflows from equities on a global basis so you can definitely see that flight to safety is still there, but also just i think a belief or pricing in the level of Economic Growth that investors are still feeling comfortable in fixed income, a very strange raid to me and its there and its prevalent. Just for the record, jeff, the final revision that we got, at least the last one i saw on the ism number was 55. 4, pulled it back a little bit. I said 56. Just want to make sure with a show of record wanted to make sure we had it right. Very quickly before we go. Where do you see value right now . Where are you investing . I like the publicly traded reits, especially the held care, Affordable Health care act is bringing 30 Million People that didnt have Health Insurance into the system so were going to need facilities to handle all the records and things. I also like mlps and like dividend paying stocks and i do think you like that yield . You have to have yield because you have no other place to go. Going to the bond market is just going like when youre playing tag its like getting on base. Investors are forced into the stock market because they have no other place to go, so the stock market is the path of least resistance right now. And thats 5 yield on junk bonds now, thats pretty good . Go online as well and read jeff coxes piece on the Market Correction that hasnt happened. It will happen but when . It will happen because it has to happen. We know. Weve heard it. Something about the laws of physics. Thank you all. Good to see you. See you later. Have a good rest of the day for this monday where, again, we remind you any positive close for the dow or s p will be a new alltime high for those averages. The dow is up 20 points right now and the s p up a fraction. Sticking with the yield, well be talking more coming up. Well talk a little apple at its closely watched Developers Conference. How people will weigh in on the conference. Is the programming language significant enough to take apple to highs and then a look forward to apples review. A Real Estate Investment trust was outperforming the faction a lot, but sixfold. The head of the national Real Estate Investment trusts will tell us how long the good times may roll in terms of longterm Interest Rates having to go up tiantly. A look at where hes seen the fastest growth. Stick around. That exclusive interview is still coming up. Peace of mind is important when youre running a business. Century link provides reliable it Services Like multilayered Security Solution to keep your Information Safe secure. Century link. Your link with whats next. Welcome back. A mixed day. One of the major averages is hovering into the afternoon session. The dow is up 17. Any positive close for that or the s p will be another new alltime high, and the s p has just dipped back into negative territory. The nasdaq is underperforming, down 12. 5 point. Among the underperformers it s apple which is in the midst of its technology conference. Its up 1 . Down 1 the last time i saw. Its down. Biggest name in the index. I know that were comparing apple to oranges, had, ha, ha, o coin a phrase, but back when they had the Developers Conference the stock would go up because people would be excited about the new products. And this is amid new language. Bob pisani, a new month, last month of the quarter. What are the big movers right now. First trading day of the month. Usually get a little more volume. Not seeing that today although we are in record territory. Want to show you the s p, little excitement in the middle of the day. Suddenly around 10 00 the ism numbers came out much weaker than expected 533. 2 and turned around around 11 00 and revised the numbers, made a mistake in the conclusion and said it was 56. That was above expectation and then it was revised another time. You think they would get the slayings right. Theres the little dip you see earlier in the day around the ism. It actually did move the markets. Back in high territory. The new rawls on theop emissions have been proposed by the white house and see the effect there. Gold stocks, still cant get traction. Gold was 1,300 and now 1,250, down 50 in the last week. Follow through gold stocks on the weak side. Some sectors are up. Publishing is up a little bit. Gwyneth was mentioned positively in barons over the weekend. People talk about these magazines dont move stocks. Barons mentions it and it does mention t. Zillow downgraded. Rbc and Pacific Crest and still having a pretty good time. Big momentum Stock Holding up pretty well. Guys, back to you. Bob, thank you. Speaks of Real Estate Investment trusts, they are lapping the s p 500 several times since january. With us now to talk about at the New York Post 9 is steve wechsler, the president and ceo of the national Real Estate Investment trusts who will be ringing the bell at the big board. Good to be here. Why now, why the outperformance now . Where what does that say about where we are in the Economic Cycle . What it says is that weve been in some slow steady growth, notwithstanding the quarter revisions and that growth on a clowe upward basis is good for real estate. The economy is growing slowly, increases demand for fundamentals and for real estate and the properties that they can offer tennants. How much different kinds of Investment Trusts are there . Theres about 250 publicly traded Real Estate Companies at reits in the United States. The world today, theres 30 nations with reits, so believe it or not, in the uk, france, japan, singapore, reits are operating in those countries as well, but in the United States, of the 250 stock exchangelisted reits, they cover different sectors, retail, regional malls, strip shopping centers, office, industrial. Health carerelated, selfstorage. Selfstorage. Apartments. Anything that has got land under it, right . Americans have a lot of things they would like to store somewhere. Im hip. And are they all built the same such that when rates start to rise they will underperform . Thats when well start to see them underperform the market. Is that whats going to happen . The issue of Interest Rates and the reits is complex. Its not a oneway street. Obviously rising Interest Rates are negative for all assets generally in asset pricing. With reits you get the potential benefit of in a rising Interest Rate environment oftentimes the economy is growing and that provides Pricing Power to the landlords to increase rents, to compensate for the rise in Interest Rates, so its a mixed picture and most time periods where Interest Rates have risen over the last 20 years, reits have done well as opposed to not. I would imagine the more the people pile into these products, which i imagine they will chasing the returns that they see, doesnt that mean youll get lower and lower quality issuers coming to market potentially . Weve had a limited number of ipos to date, though each year since the great financial crisis theres been some, but what you will have in the public real estate markets for the stock exchangelisted reits is youll get the liquidity of real estate so youll get the realtime pricing. Youre not getting in the private markets, and thats a signal. Yeah. For good or ill . For good or ill, and theres a bottom. We quickly saw last year when the tapering talks began, chairman bernanke roughly a year ago, reits cropped, but they bounced back once they found that bottom. Like a lot of issues at that time. Steve, good to see you. Well let you get going to ring the closing bell. Appreciate being here. Well take a break. The market with 40 minutes left in the trading session here. The dow up 17 points in alltime high territory once again. Finally hit dow alltime highs when you were gone on friday. I know, i missed it. I did cheer from home. Were keeping a close eye on the indexes. Clovis oncology stock taking a hit. Down more than 7 on news its experimental lung cancer drug is linked to diabetes. The companys ceo will explain whats going on and if theres hope for a turnaround coming up. Also ahead, two apple pros will give us their take on the latest announcements coming from apples developer conference in San Francisco going o. So far the company is not impressing investors today. Does the street have it wrong . Well talk about that coming up next. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. Welcome back. Starting the week after stronger than expected. Maybe it was stronger than expected data on manufacturing here this morning in the u. S. Many different expectations. Looks like stocks are trying to find their direction. Dow adding 20 point and the s p is barely higher and the nasdaq negative. The apple extravaganza has gone. Lets find out about the stock today. Down 1 , as we were saying. Joining us is john maloy, general partner at blue run ventures and robert luna is chief Investment Officer and the sure vest capital management. You think this is a critical moment for apple, why . Well, in a way apple is a bit of a victim of its own success. Were all waiting for the next piece of hardware and today is all about software. I mean, overall. Are we wrong to judge this company thats alive today and comparing it to a company run by steve jobs . Is that just the wrong thing to do. Just about meeting expectations and we all have Great Expectations because of what steve jobs and the team there did and they are trying to evolve this company but we as consumers and developers, we all have differences and financial analysts have expectations that are higher and higher and its a question of will they be able to meet them or not, and i think today robert, im sorry. Go ahead. And i think today if youre a developer, youre probably marginally happy and very excited if youre an apple developer. If youre a consumer, do i really run out and buy an apple product right now and you didnt really hear anything that lit you up to buy the next great thing. Thats what i was going to ask. Maybe this isnt a great cycle for people who want to buy the new iwatch or the next great cycle. What do you think . I think, kelly, it comes down to this. People are trying to judge apple right now in the silos, is it the next great iphone or ipad, and i think in general thats really the wrong way. Right now theres a twohorse race between google and apple going on that right now is about the share of your life. Its not about the next iphone or next ipad or that product because essentially thats just a medium and that might not be what gets them into your house. Looking to control your home, your health care and car and in order to do that it comes down to coolness, connectivity and content and when youre looking at movements they are making, thats a luxury brand like burberry, cops like louis vuitton, when they expand its multiple brands. Dont want to saturate the apple brand so as they get into the home they need to implement new products and thats what they are doing right now and with dr. Dre coming on, johnny iovine. I think thats the next big product and what apple is doing is making the move right now. John, what about that . Are they making the right pursuing the right strategies going after the people the way they need in order to incremental increase sales by making our lives all that much easier now . Oh, i think that their strategies are fine. I think that they are trying to improve their software and their services which everybody is trying to do, and you cant forget about it. Theres another company that wasnt mentioned called samsung, and its also about share. At the end of the day its about the pieces of hardware that you sell and apple has trained us all to delight and we delight and enjoy the great, great products so you have to connect the dots back to their model to a piece of hardware we ultimately buy so when i look at health kit or home kit which is something announced today, thats great for developers, but theres a missing piece. They will have to come up with a great piece of hardware that takes advantage of that because thats their business model. Robert, who is winning the race right now for a share . As investors and analyst weve preconditioned ourselves to look at hardware. Tim cook, hardware sales, quoted hardware sales so he reminded everybody that in the past they have done very well with these products that they introduced, right . Thats true. I mean, look. I was at microsoft a couple weeks ago, and i talked to executives over there, and i asked them point blank, hey, who is you allowing office on ipad a concession youve won the war lost the war to apple and they werent quite able to admit that, but they did say that the Apple Ecosystem is very tough to penetrate. Look at the mental mold and ibm fighting the battle on a share of mainframe rather than Computing Power and while they kept the mainframe they lost the bigger war. Trying to look at the bigger picture. While hardware is important its not everywhere where apple is going right now. Weve got to go at this point. Sorry, jop. See you later. Thank you for your thoughts though. Theres never enough time. Thats how it works in live television, unfortunately. Unless we can keep up with a new language. We could compress. Do a zip drive, zip version of closing bell here. 30 minutes left in the trading session. Up 21 points on the dow right now. New alltime high if we close there and the same for the s p. Now, u. S. Auto loans jumping to new highs in Monthly Payments and in length of terms for the loans. Didnt the same thing happen with housing before this all went south . Phil lebeau has a special report on that one coming up. Also, Intercontinental Hotel stocks soaring by more than 30 in the last year. When we come back, the hotel group ceo will tell us how he plans to keep that kind of mojo going. You wont see him anywhere else here today, so stay tuned on closing bell. man speaking chinese fame, makes a man take things over fame, lets him loose, hard to swallow fame, puts you there where things are hollow the evolution of luxury continues. The next generation 2015 escalade. Fame you need to see this. Show em the curve. Do you know what this means . The greater the curvature, the bigger the difference. [scifi tractor beam sound]. Sucked me right in. Its beautiful. Gotta admit one thing. Cant beat the view. Introducing the worlds first curved Ultra High Definition Television from samsung. Trwith secure wifie for your business. It also comes with public wifi for your customers. Not so with internet from the phone company. I would email the phone company to inquire as to why they have shortchanged these customers. But that would require wifi. Switch to comcast Business Internet and get two Wifi Networks included. Comcast business built for business. Welcome back. Just joining us. Its an incremental you know how incremental apple has been. The stock market has been the same way. Havent had much drama, not a lot of fireworks, but we just keep moving higher step by step and were in record territory again today for the dow and the s p. Any positive close for either of those will be a new alltime high again and the nasdaq is down seven points today. A great way to put it. Hotel ceos meanwhile are checking in today at the 36th annual nyu National Hospitality industry conference over here in manhattan. Thats right up midtown. Cnbc simon hobbs has been right in the middle of the action and joined by internental group ceo richard slomons. Its an exclusive. Take it away. The big question for many investors is whether the big hotel chains, marriott, starwood will take over a uk company to basically tax invert to cut their tax bill overall and pay less money to the u. S. Government. If they are going to do that, then the guy they probably have to talk to is richard slomons who is the ceo of ihg intercontinental. Welcome to the program, richard. Hi. Before we get into the rough and tumble of whether you will be taken over i was hoping you would have pictures of the even hotels which is the new wellness complex that you expect exclosive growth from. Where are we on those and is it true that you can use the towel rail as an exercise bar . May not be something that survives. It comes out from a simple reality, 17 million americans who this when they travel feel like they fall off the wagon and cant pursue what they do from a wellness perspective, food, sleep, work, eat, whatever it might be, and so its a new brand weve launched. Opened the first one very, very shortly and well pray around with the brand a little bit but theres a lot of interest from consumers and owners and were very excited about it. The stock has done really well in part because of the reports that starwoods was interested in paying 10 billion for you in order to take on some of the brands that you have and also to tax invert. What are you able to say to us . There was a speculative press report in the uk that talked about an offer. We never comment on press speculation. Kelly, bill, do you want to come in here . Actually, simon, you talk my towel rack question so ill come up with something else. Mr. Solomon, lets say that there was an offer on the table for 10 billion and it was rejected, that was the press report that your Company Rejected as too low, let me ask you this then, what is your Company Report right now . Well, you ask any chief executive what his company is worth, hell tell you its worth more than the current share price and you look at the great that hes got, 1,100 hotels in the pipeline. Theres an awful lot of potential in this business around the world so were very excited about our prospects. Richard, thats one reason why some of your big shareholders, hedge funds say you guys would be stronger if you merged with a competitor. Are we about to see a transformation in the Hotel Industry much like other parts of the m a world right now in terms of a pickup and deal making, and dont you want to be part of that . I think if you go back ten years, the Hotel Industry was built through acquisitions and mergers, that was true for us and some others. If you look today, we have about 5 of the worlds rooms and about 13 of the future pipeline so the organic Growth Opportunities in this industry are rough and some of the other big brands are very large so thats where the focus is right now is really on organic growth rather than merger and acquisitions. Just to pick up this tax point, richard, im trying to think across the european landscape, if they want to pick up someone to divert into, i mean, theres a big french chain and two big spanish chains. If they want to do that, do you hold all the cards for the big four here . Well, i think in terms of big Global Players were the only major one based in the uk. And it would be for the uk tax regime that they would invert into. People are talking about inversion. Im not a tax expert and cant talk about that. As a ukbased company, uk is only 5 of our business, so we just happen to be a Global Player based in the uk. Simon, just one quick question. The valuation if you want to talk about the transformation of the Hotel Industry is reflected in air b b. Weve heard other executives speak about this. Are you doing anything to come back at air b b as a competitive threat . Its a robert of the sharing economy and a product of the noise and the views of valuation around tech, but actually if you look at fundamental, the air b b customer is very much the margin of our business in terms of the wee hours. Hotel economy. Look at the sharing economy and if theres a big opportunity there for customers who want that sort of product and as a brand we can provide it in a properly regulated and round business way there may be opportunities there and right now its at the margin and the growth weve been seeing all around the world, the growth in travel demand is all about Traditional Hotel rooms right now. Whats interesting is you basically said you would copy them which is what a lot of brands are saying and why they are not doing as well as some have said. I think you can do things better. It may be an opportunity. Youre a good sport because you knew how this interview was going to go. Richard slomons, the ceo of intercontinent intercontinentals. I bet you didnt expect the towel rack question though. That was a good one. Got him on that one. Thank you, simon, very much. Headed to the close, 20 minutes left in the trading day, dow up 23 points, a new alltime high, the s p up half a point, new alltime high there as well. The story of the weekend in some ways. How will the governments Insider Trading pro of golf pro Phil Michelson affect his 40 million in corporate sponsorships. Well talk next about the highstakes you be raveling that the man known as lefty could be facing. Also up next, u. S. Consumer borrowing to buy new cars hit a record in the First Quarter, but maybe not the kind of good record you would think. More years, bigger Monthly Payments, it was all part of the deal there. Does that all add up to trouble though . Phil lebeau with a special report coming after this. Beautiful day in baltimore where most people probably know that geico could save them money on car insurance, right . You see the thing is geico, well, could help them save on boat insurance too. Hey okay. Im ready to come in now. Hello . Im trying my best. Seriously, im. Im serious. Request to come ashore. Geico. Saving people money on more than just car insurance. In todays market, a lot can happen in a second. With fidelitys guaranteed onesecond trade execution, we route your order to up to 75 Market Centers to look for the best possible price, maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. 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The average Monthly Payment for a new vehicle is also a record high, 474, and as i mentioned this raises concerns that people, because they are going to be financing more, will ultimately be upside down in their vehicle in part because of this chart. Look at the new way people are financing their vehicles. Remember the days of the three or fouryear loan . Those are quaint memories. Most people are doing it with five and sixyear loans, but its the last one on the right there, six and sevenyear loans, one out of every 4xnew vehicles bought in the First Quarter was with a six or sevenyear loan. In fact the average length for a loan now for all people buying a vehicle has surged to a new alltime high. It is now at 5 1 2 year, 66 months. The number of repo sessions has moved higher and this is worth watching. Its now less than 1 of all auto loans, but it is moving up, according to when you look at the auto dealer stocks, they have had all had nice year to date. Certainly the demand is there, when you have them taking out a sevenyear loan for an automobile, youve got it pay off at least the first five and a half years, otherwise youre upside down if you try to turn it in. Thats a concern if the economy starts to faller. Whats it. I grew up leafing through the used car listings, the booklets that tell you can find a volvo in good shape for under 5,000, that kind of thing, recently back at the same pizza place where i used to be groipg, all of the cars were listed, not by the actual selling price and by the Monthly Payments, walk away, 99 a month, 101 a month, i was astonished to how much of a change theres been in a few years time. Kelly, its all about the low Monthly Payment. Thats why leasing has exploded. One out of every four vehicles quote unquote sold in the First Quarter were actually leases, and the reason why, its about 100 cheaper per month in your Monthly Payment to lease as opposed to buying, and thats not just with the highend premium models, also for the mass market models. If people are having to reach out with the longer term loan because of the higher price, econ101 says prices would have to moderate, do you agree . Look what the automakers are doing, putting more technology into the car and people are saying if its 474 a month, ill go up to 500 or 525 and stretch that out over seven years, that means automakers have a couple thousand more they can pack into these cars. Did cash for clunkers contribute to this . No, no. This was the industry. It was not because of cash for clunkers. All right. Not because that have shortage. Thank you for now. Much more on this, im sure. Not that you ask, but people should keep their cars for seven years anyway, built party. Sell your car to kelly. Exactly. Up 36 points with 13 minutes left in the trading session. If youre just joining us, im just reminding you this is an alltime high, any positive close for the dow and s p is a new alltime high. Clovis ceo speaks with me about when it means for a new cancer drug. Meg turrell with more on that. Dont miss that interview straight ahead. You read this. Watch that. 50 tdd 18003452550 you look for whats next. Tdd 18003452550 at schwab, we can help turn inspiration into action tdd 18003452550 boost your trading iq with the help of tdd 18003452550 our live online workshops tdd 18003452550 like identifying market trends. Tdd 18003452550 now, earn 300 commissionfree online trades. Call 18886282419 or go to schwab. Com trading to learn how. Tdd 18003452550 sharpen your instincts with Market Insight from schwab tdd 18003452550 experts like Liz Ann Sonders and randy frederick. Tdd 18003452550 get support and talk through your ideas with our tdd 18003452550 trading specialists. Tdd 18003452550 all with no trade minimum. And only 8. 95 a trade. Tdd 18003452550 open an account and earn 300 commissionfree online trades. Call 18886282419 to learn more. Tdd 18003452550 so you can take charge of your trading. All right. Heres the dow. Were up 37 points, pulling this off the big board. Let me just say this. In the last 10 or 15 minute weve experienced technical issues at cnbc. The ecb is part of the story. All right. Were going to take a break. Well come back with you in just a moment. Ive just been told that the data on the ticker, the data on the ticker is accurate again so they have worked out whatever that glitch was that we were experiencing here at cnbc just a few minutes ago. The dow though as we head towards the close is up 33 points. Come back on the closing countdown and see if we get new highs again and after the bell golf pro Phil Michelson has 40 million in sponsorships. Are those in jeopardy now that the word is out that the government has been speaking with him about an Insider Trading probe . Plus, the latest development on that case and now mark cuban is chiming in and getting his two cents via twitter so things are happening fast on the Phil Michelson Insider Trading. Youre watching cnbc, first in bice world wide. Every day of the week. Take them on the way you always have. Live healthy and take one a day mens 50 . A complete multivitamin with 7 antioxidants to support cell health. Age . Who cares. [ bell ringing, applause ] five tech stocks with more than a 10 . Change in aftermarket trading. All the tech stocks with a market cap. Of at least 50 billion. Are up on the day. 12 lowvolume stocks. Breaking into 52week highs. Six upcoming earnings plays. That recently gapped up. [ male announcer ] now the world is your trading floor. Get realtime market scanning wherever you are with the mobile trader app. From td ameritrade. Coming up in the final two minutes of trade here today as the market incrementally moves higher in the major averages, dow up 28, 29 points, the s p up about a point and a third and the nasdaq has pulled become a little bit. Michael block and anthony chan are still with me here. Going into the summer months now. I was asking somebody earl yes, you know, going to go with growth or with the defensive plays that have started to catch on again here. Whats your strategy here . My point right here is really to go with the smallcap growth with the trade for the short term. For the rest of the summer and rest of the year real my longterm view is towards large cap value, stocks going up fine multiple expansion and theres going to be people rolling into them. Give me an example of one. Stocks in the staples space, some of the food stocks like conagra. People will find those and buy those and see the story and find the dividend yield. They will like that for the long term. Which is defensive, lets say. I mean. It is. Still some leadership there when mixed with some of the other groups and some of the banks as well which ive seen as being better investments, soon. Were already talking about the jobs number coming out on friday since last months was a blowout number. Can we match that. I know youre very bullish on the economy but do you think we can match that and have the kind of bounce that people are expecting for the Second Quarter. When you say bullish, may be bullish on the nonfarm payroll number. I think that we can actually see a very strong nonfarm payroll report, something in the neighborhood of 220,000 to 230,000 and in this kind of environment you may see an increase in the Labor Participation rate which will tick the Unemployment Rate higher. We continue to move higher, new record high for the dow and s p. Well see how we can do as we continue tomorrow. Stay tuned now for the second hour of the closing bell with kelly evans and can. Ill see you tomorrow, kell. And welcome to closing bell, everybody. You see that graphic, you know what that means. It looks like with todays close were notching a new high for the s p 500. The Dow Jones Industrial average, the nasdaq sitting this one out, not in terms of new highs but also lower on the day. A look at how were finishing up. The dow is adding 26 points, the s p 500 up just about one point, 1924 is the level there, the nasdaq giving up some ground and giving up five points. I love this richer look that were going with right now. As Bill Griffith mentioned last hour, there may be problems were experiencing with data, but the ticker youre seeing across the bottom of the screen should be all right. Joining me is moshe cohen from columbia business school, our very own kayla touchy and dominic chu and more on todays market. Our fast money friends, guy adami. Great to see everybody. Hi, kell. I was waiting. When you say, hi, everybody. Youre supposed to say hi, back. Hi back. Welcome. Guy. Let you have the first word here. What do you make of these highs, granted not a decisive move but we did get a turnaround in some of the financials. Hasnt been a decisive move for a while. Keeps grinding higher. Feels like they found some footing a little bit. Pete has been on these chips. This is renaissance in the chip sector thats been going on very quietly for quite some time. Those are the good things. I guess sort of on the negative front, the underperformance of the russell today concerns me a little. Has this been a bounce off an oversold condition, or, you know, is this just the pause as we continue to go higher . I think thats going to be worth watching over the next couple of days . Right. Michael crossen, the view from philly, does it look different . This market is really anticipating a much stronger economy, and its giving the economy plenty of room to prove itself, so i think if we see a Third Quarter number thats Significant Police higher than the last couple of numbers weve seen it will justify the market and allows us to get to the higher levels. Meantime, dom, got to figure out what the numbers are. Thats, again, not a shot. Obviously everybody has technical difficulties every once in a while but with ism and those numbers that came out today, were not, but when you have ism numbers like they came out this morning, the initial reaction was, yes, maybe they werent as god as people thought they would be, but after being revised not once but revised twice we timely got a picture for what things were going to look like and at that point what looked like a modest down day for stocks turned around. Steve liesman has been talking for weeks now about this idea that the Economic Data has been mixed at best. This is one of those things that tips the scale maybe a little bit more towards the positive side, and thats important because it means, like guy said, the path of least resistance for this market right now seems to be to the upside and we need that gradual move up. Mixed bag of data, but nothing so alarming that it brought the market to its knees and the overwhelming sense from traders that i speak to is that without one of the really glaring red flags the market will continue to go higher even if its just drift drifting higher. Guy mentioned financials and i cant talk about the market without talking about them even when you see a day like today when you see the sector moving higher. This is such an undervalued basket of stocks trading at roughly 12 times earnings and the s p is trading far more expensively than that, a sign that there isnt a lot of growth or promise and especially when youre seeing bonds trading the way that they are, thats really going to be a negative for the banks in the near term. I was going to a wedding and i joked i wouldnt come back until the tenyear was back to 2. 5 . It did achieve that today. What do you make of the signal were getting from the bond market . Should we ignore it . Does everybody seem to have taken this message to heart that maybe even as the fed raises Interest Rates they are never going to go back to say 4 , 5 . Theres a real important inflation question that still sitting on the sidelines and is waiting to be asked. The way the measures are calculated. Forward expectations will start sinking a little more deeply about what prices are going up, which prices are going down. Where the money is coming into the system and who is spending it and it doesnt do much until you have the Ripple Effect that you start losing the systems significantly, but until that happens, the path of least resistance as dom said, stocks move up, still money going into stocks and we look at the ecb and look at europe, spreads are down, so might as well park your money in u. S. Bonds as opposed to being a lot riskier european ponds that arent giving you a whole lot more. Bring up an interesting point. A couple of fascinating sections last week talking about why Interest Rates havent moved up on some signs of price pressure, upwards pressure for once in this economy and even the ism report today did show pri pricing index edging higher. Is this a sign we could see more normal levels of price appreciation here, inflation, dare i use the word . Shortterm Interest Rates are another question, but longer term Interest Rates should move up and they will move up significantly if and when the economy gains the momentum. Economy gains momentum, volume into the stock market and Interest Rates up, thats a real formula for a big move up in the market. Let me read, guy, a couple of the comb in the of the dow, one of the strongest gapers in percentage terms, caterpillar adding 1. 5 , home depot up. 75 and a 1 move in technology. Ibm. More cyclically sensitive names, what you would want to see if people were looking for a better growth outcome. One day does not a trend make so lets see if it happens for a few more days. Ibm has sold off obviously from about the 196 level and got down to 113. Caterpillar had a recent selloff. Thats bouncing, so the names you mentioned, a lot of these names have just been bouncing off and in certain instances are in an oversold condition. Back to the rates real quick, you know. Rates go higher over the next couple of days, all the voices youve heard for the last six months will come back talking about this is it, this is the move, rate are higher, but good thing you came back from that wedding this week because in a couple of weeks im pretty convinced that rates are going to be right back down. I think this is a new vacation strategy, i will leave every time they go below 2. 5 , moshe. Waiting for a big event, not small movements, there will be a big event that has to do with the fundamental question of will this economy grow and how will it grow in the medium and longer term . When you look at the fiveyear and tenyear, you can keep talking about how the fed will influence shortterm rates and influence shortterm rates and influence shortterm rates but at some point the question is will the economy create fundamental Growth Potential that will come from a real resurgence of important sectors . Thats interesting. Is there a sense that there is something lurking out there thats going to suddenly i think there are two things lurking out there. The dangerous side is if we start to get very suspicious of the really low inflation this environment, but i vote for the optimistic side. The optimistic side is not talking about all this boring gloomy Market Movement thats dangerous, yields are low but its dangerous, Start Talking about really exciting developments in the economy like in technology and education and the energy sector, in Health Technology and infrastructure. Once we start having these more highlight policy that can show real Growth Potential theres a real upside that people can be hopeful for. We always think were running over the abyss. Start talking about the economy rather than the market. Lets be happy. Heres the thing. You can be happy or not happy but a lot of the experts we talk to say the fundamentals dont matter in the fixed income markets anymore and thats the reason why youre seeing these deals stay where they are and it could be a while before they get back to normal despite the fact that the Economic Data could be good, despite the fact that the fed is reducing its bondbuying program. All of these things are getting back to normal, but the problem is nobody can volume. None of the models for valuations of fixed income really work anymore and if you try youve been work. Even today theres a great story out with great anecdotes that the Federal Reserve doesnt know what its doing. And this notion that janet yellen has a secret playbook that shes imparting on us is ridiculous. We know her fed policy and know the balancing act, know the economic models that are out there. Understand she wants to maintain sentiment there. Isnt a big secret waiting to be revealed that were going to find. Yes, lots of people are staring at the screen and trading for very short term and this is my point. Something has to rattle the system a little bit and then people say, wait a minute, a tenyear bond is a tenyear bond. Whats going to happen over the next ten years in the country . I think something will happen. This is the week where a lot of the big moves often for the month are made so we made it through the ism today, sort of. Ism services coming on wednesday and jobless claims thursday and adp, the jobs report and European Central bank. If you had to guess which one of those were some sort of repricing, what do you think it is . You asking me. I think its the European Central. I think thats sort of the wild card out there, in my opinion, the other numbers are somewhat many are interesting and stuff but i think the ecb is the complete wild card. Real quick to the tenyear. I dont think people buy the tenyear yield for a tenyear play. Buy the tenyear yield because they think over the course of however many months, weeks, days, the instrument that values the tenyear is going to go higher. Thats what i think. Or they have to because they are using a paper and holding it for collateral or something else. Not fundamental reasons. And at some point fundamentals will catch up. As long as they stay disconnected from the fundamentals, the longer and more serious the adjustment will be. Just a sentence, michael, what are you guys buying here . Buying banks. We think banks are a great place to be as Interest Rates go up and as the economy recovers, the financials are going to really show us that they have a lot of strength. All right. Well leave it there. Guy, thank you. Right on. Good to see you. Thanks, everybody, for bearing with us. Looks like were getting more of our data feeds. Stay with us for the rest of the fast money crew. Theres dennis gartman, author of the gartman letter on why he thinks chinas bears will end up on the wrong side of history. Dont miss a minute of that. Coming up the fbi and s. E. C. Reportedly teeing off an Insider Trading probe against carl icahn, golf legend Phil Michelson and bigtime las vegas gambler, all parties denying any wrongdoing. Could this do irreparable damage to michelsons career even if charges arent brought and the more than 40 million he brings in a year from sponsorship deals and if youre waiting for exciting news from the apple Developers Conference. Keep waiting. Could this put apples recent rally at risk . That when we come back. Nation in new private sector job creation. With 10 Regional Development strategies to fit your business needs. And now its even better because theyve introduced startup new york. With the state creating dozens of taxfree zones where businesses pay no taxes for ten years. Become the next business to discover the new new york. [ male announcer ] see if your business qualifies. Become the next business to discover the new new york. In a we believe outshining the competition tomorrow quires challenging your Business Inside and out today. At cognizant, we help forwardlooking Companies Run better and run different to give your customers every reason to keep looking for you. So if youre ready to see opportunities and see them through, we say lets get to work. Because the future belongs to those who challenge the present. Welcome back, our Senior Correspondent scott cohn has more on the story rocking the world of golf. Reporter we dont know where this is going to go because in part the fact that the information is out there has confounded the fed efforts to try to make the thing go forward. The reason that we know that there is an Insider Trading investigation going on is from golfer Phil Michelson who just yesterday at end of the memorial tournament in high high confirmed it and says hes cooperating. Listen. I have done absolutely nothing wrong and thats why ive been fully cooperating with the fbi agents and im happy to do so in the future until this is resolved and for right now, hopefully it will be soon and right now i cant talk much about it. Michelson has been known to play the stock market and his trading partner, so to speak is billy walters. He is a gambler basically from las vegas, a very successful sports kwbler and businessman from las vegas. He, too, said he did nothing wrong and at issue is holding of carl icahn or at least a holding from 2011. It is clorox. You may remember that he launched a takeover bid that didnt go anywhere in july of 2011. The stock popped on news that icahn was launching this bid, but before it was some heavy trader in Trading Options reportedly trading by Phil Michelson and billy watchers and the big question is whether what they knew was material inside information. As news of this leaked out, fbi agent questioned Phil Michelson on the golf course after his first round at memorial on thursday. He says hes cooperating. Everyone says they did nothing wrong. Well see where its going but it certainly, kelly, brings some attention to the whole idea of activist investors and knowing what they are going to do and whether thats inside information. Well talk about it. Thank you for now. Mark cuban taking to twitter to slam the medias treatment of Phil Michelson. Cuban works has dealt with his own media scrutiny tweeted, quote, carl icahn has never met or spoken to Phil Michelson and yet both are in the middle of a media firestorm, headlineporn and until you wake up to headlines accusing of you wrongdoing by the government or others, you have no idea how important due process is. Now many are wondering what will happen to michelsons brand and if this could drive his sponsors to drop him . Lets bring in a sponsorship veteran phil colvin. Great to see you, bill, welcome. Thanks, kelly, great to be here. Hes wearing a kpmg hat, standing next to a sign with nationwide on it. Is this a problem for those kinds of firms . I dont think right now, you know, to mark cubans point to rush to judgment, i think we live in a word where its easier to get it now and i would like us to go back to get it right and i think we need to let it play out a little bit before we analyze that anyfurther. Bill, could it be more i mean, this is the case, no doubt about it, no question about it. Raise it only because. If youre barclays and kpmg and sponsor Phil Michelson, do you have a opportunity to address this issue today . I think they will need to address it as a little bit more information becomes available. I think people following the story saw what calloway did today. I think barclays and kpmg obviously in different industries, they have a limb bit more direct connection with the s. E. C. , stocks, financial industry, et cetera. However, i think they will be very cautious because Phil Michelson has been a very well respected endorser of these products for years and years and at a minimum hes built up a little bit of allowance and we dont know at this point if there has to be. I think the main problem with this Insider Trading is theres a lot of legislative uncertainty. Folks that dont know what is legal and what is not legal, i think there is this notion that the antisocial bad behavior is that there isnt a fair Playing Field but the fair Playing Field is not what is criminalized and the problem here is, and hence this segment, if you compare this to tiger woods, right, tiger woods was a sex scandal, americans hate infidelity, but wall street is getting a lot of bad buzz and a lot of sentiment against wall street representing profits and, you know, the Old Boys Club and all this inside information, and sponsorships are so sensitive to sentiment because its all intangible. Its all unclear, so its very dangerous once these issues start to surface, clouding potentially a reputation of someone who may be completely within the law. So you think sponsorships, theres no presumption of innocence. I think the society and advisers dont have to worry about presumption of inzent. They worry about real profits. Our system of jurisprudence is based on it and if youre an advertiser and choosing between one golfer that has no aspersions cast to them whatsoever and then squeaky clean and another golfer who may be there is some rumors or some smoke around them which may be completely legal, you may not take the risk. And thats just as important as reality and not that these two are related at all but i think around the s. A. C. Capital situation, when actual charges were brought by the government, so many banks came out and said were not willing to stop trading with s. A. C. Because its not our job to tell this company whether or not they are guilty or not. Thats for the company and the government to actually decide. I get your point that theres a bunch of golfers for some of these companies to choose from but at the same time every single story you read says the probe may even fizzle out. Its been going on for three years and they may not even at this point have enough information. It should fizzle out if it should fizzle out the point is theres a possibility in these discussions because there is harm that is inevitably done once these some of these aspersions are cast. If it was leaked out because of michelson himself thats a separate challenge we have to deal with. Theres a decision that has to be made because everybody, even with the Donald Sterling situation, you saw a lot of sponsors come out and some immediately cut ties. Some said that they were going to monitor the situation and see what developed. I would say with michelson the sponsors have not made a Statement Like calloway has against their firm form. They are waiting to see that happen and its a huge, huge supporter of Phil Michelson. Phil and Amy Michelson have a foundation to help foster teachers in this country in cooperation with exxon mobil so on the balance side of thing, remember, there are good things that these people do as well that will be weighed in the if i could jump in for a second. If they were new sponsors or in the midst of signing a deal they will probably sit back and cool a little bit on that and wait until it comes out. If youre an existing sponsor, would i not be surprise federal they came out very shortly and gave a vote of confidence to Phil Michelson. Hes earned it. Bill, thank you for now. This one is going to play out as we especially head into this critical tournament time. The buzz out of apple has been a seven to 1 stock split. Was todays announcement enough to satisfy investors whose fans were looking for another product . Well have a review next. Plus, Clovis Oncology releasing early stage results of its experimental cancer drug. A look at how effective this drug appears to be and when it could come to market. mother vo when i was pregnant. I got lots of advice, but i needed information i could trust. Unitedhealthcares innovative, Simple Program helps moms stay on track with their doctors to get the right care and guidance. anncr vo thats health in numbers. Unitedhealthcare. Dont just visit hawaii. Visit tripadvisor hawaii. With millions of reviews, tripadvisor makes any destination better. Wbecame your business. Passion. At t can help simplify how you manage it. So you can focus on what you love most. When everyone and everything works together, business just sings. Welcome back, an earnings alert. Morgan brennan back at headquarters with the details. Check out krispy kreme, its getting creamed in the after hour. The doughnutmaker reporting firstquarter earnings that match street estimates with sales coming in a bit light. Heres what investors are really focusing often the company lowered its 2015 earnings outlook so in the after hours the stock is trading down about 10 . Kelly, back to you. All right. Quite a hit there, morgan. Thank you. Breaking news from apples Developers Conference. Following this. All day josh lipton joins us with the very latest. Josh . Yeah, kelly, i just had the chance to speak to apples Craig Federigi and Paul Schiller about the news and there was a lot about it at this conference, asked him about the new desk top operating system yosemite. That soft weigh update will be for free. A big part of that theme is what apple executives called continuity, an idea there shouldnt be any boundaries between your mac and other apple devices. You should be able to get phone calls on your map. Craig demonstrate that had technology by calling dr. Dre who, of course, is now an apple and employee after that beats acquisition. Craig telling me the idea is to eliminate barriers. Apple also unveiled, of course, ios eight, new mobile operating system. New features from messages and searches, also though, kelly, some new services. You have health kit. This is where apples big push is for help and fitness. What health fit does is pull in data from Third Party Applications and put it all together in one place so one source for your health and fitness. Apple announcing its partners will be nike and the mayo clinic and really is sort of suggesting that perhaps this long rumored iwatch could be on the horizon. Well have to wait to find out. In the same vein apple announcing that home kit, a home automation platform, the idea would be you would use your iphone to control your home, your lights and front doors, your garage doors, theres no hotter topic in silicon valley, and the idea of the smart home, google moved into it with the 3 million acquisition and cisco talked about its own version. Paul schiller saying the point is to create easytos secure platforms. Developers can now come in and create apps so a lot of Software Services and software updates. The idea here is maybe pointing suggestions to new products coming in the future. Kelly, back to you. All right, josh. If youre losing your voice youve got to be careful. A couple more days to go still. Have tie with honey or something. Clovis oncology ceo told analysts that the companys experimental cancer drug may cause diabetes. Up next well hear from him exclusively to find out if thats the case and what does it mean for the prospects and well speak exclusively with the ceo of king fisher. The largest Home Improvements ian chesire is in the house. Pags welcome back. Weve been reporting from the American Society of clinical conference. Its the worlds biggest chance for research with 30,000 attendees and biotech and reporter extraordinary air meg turrell joins me with patrick mahaffy, ceo of Clovis Oncology who recently introduced a drug that reduced tumor size in patient but there was a catch. Meg, take it away. Thanks so much. Here with mr. Patrick mahaffy. Thanks so much for joining us. Nice to be here. Let talk about the data. Talks down a bit and some concern over side effects. Some talk of diabetes with the drug. Can you explain . Yeah. Kind of ended up on sort of a game of shorts worse for me right now than game of thrones. We presented data on a dresses no true therapies and presented data that showed about 95 of patients get a real benefit and 60 get a formal response and most importantly the durability of that response is startling. Weve seen now that weve been treating patients for a year or so and our aggression for survival, really a measure of how long a patient can maintain a benefit from a drug is trending for beyond a year. Patient whose first line therapy lasted only 10 months have the population that has a longer benefit on the drug, fantastic. We do, like all oncology drugs, see some side effects. 20 of patients get hyperglimsia. Its in almost everybody, especially as weve understood it, readily met with a widely available vagt. We have three patients who were when this first emerged. It does not cause diabetes. Is that a concern for patients that they have to start take insulin along with the drug. They are taking an oral agent, not insulin, and, sure, side effects are always a worry to any oncology patient and any oncology drug delivers some form of side effect. This happens to be really easily managed and once the forman comes on board the patients quality of life is really superior and one thing ill point out is if its a problem, youll have the number of patients who have gone out of our trial because of hyperglycemic is actually zero. Kelly, do you have a question. Brate to have you here. I thought that was an interesting choice of phrase, game of shorts that you use. Had a do you mean by that. Oh, come on. We all know that theres a a wall street trading that is positive and is negative and people may want to seize on a story and tell it for a while and people profit with shorting and people profit with longing and its just the environment that im in. Im really proud of what were delivering to patients and ive always known as long as our Company Delivers great drugs to patients the longterm takes care of itself. Really happy about the data that weve presented. Right, because this seems to be a point in time which there is so much interest from the retail and the biotech communities, as you know. I would imagine theres tremendous pressure because shares move double digits each and every day on the latest of news and rumor and what have you and i wonder what you meant by the anecdote of the weekend what has happened and if thats an increasing frustration for you leading this company today relative to perhaps the past. Im not going to tell you what im frustrated by. Its no fun, but ive spent a lot of time with this here and its rewarding to hear the physician stories to hear how patients are den fitting from the drug. Im pretty focused. Ive always known that the patient comes first and luckily what were delivering to patients is a tremendous power. Ive met some, and its the most motivating rewarding part of my job so all teasing aside, yes, it happens. Really good at developing drugs and have a great portfolio so were pretty secure in what were doing. Here we saw some data also from astrazeneca, a competing drug. You both have this important breakthrough therapy designation from the fda, you know. How do you compete . How do you win here necessarily if both drugs come to market . How will physicians decide . Ive been the underdog kind of all of my career. It probably would be fun to be overdone one time, but i think you can compete on data and then this industry you always compete on data. They presented a very encouraging efficacy data as well. They have different side effects, different than ours. All the patients and physicians can make a choice about the balance of efficacy. Im really confident with the progression for survival that weve seen, that knowing what we know right now and ill acknowledge in the early days, i think we have a very meaningful potential to demonstrate a more meaningful improvement in progressionfree survive. The data thus far early days is showing that so im feeling really good about it. Thank you so much for joining us. Our thanks as well. Lets send it over to Morgan Brennan for a quick earnings alert. Hey, kelly, another stock getting hit hard in the after hours teen retailer quick silver. This after a reported bigger loss in its second loss that be the street was forecasting and thats on weaker than expected sales. The stock currently trading down about 28 . Kelly, back to you. Yeah, makes krispy kreme look a little bit better in retrospect, morgan. In bk its bq king and coming up ceo ian fisher and news making headlines from the developer conference and is it enough to make the cnbc hot list . Thats next. To look for the best possible price, maybe even better than you expected. Its all part of our goal to execute your trade in one second. Im derrick chan of fidelity investments. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. 800,000 hours of supercomputing time, 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. Whether its building the worlds most advanced satellite, the space station, or the next leap in unmanned systems. At boeing, one thing never changes. Our passion to make it real. Welcome back. Often on cnbc we talk about the Big Hedge Fund managers. Managers must be wondering how you become one because the top schools of hedge Fund Professionals are burning up the cnbc hot list. For that entire hot list allen joins me now. People want to be a master of the universe . Want to be a master of the universe theres certain schools you should go to that puts you in there. Youve got ahold of a survey from evestment. Bachelors degree, university of pep pens, top one. Going for mba, university of chicagos booth school of business. Thats the main channeler there. That has been doing well all day long but it just got trumped by our ism postmortem. You may remember there were a number of problems this morning. We went around and made a few calls. They got quite a collection of comments. Our favorite one we put in the headline. One analyst is downgrading the economist to pure moron. Thats a direct quote . A disgruntled trader. Our third one is mark cuban put out a number of tweets this morning sort of commenting on the Phil Michelson situation, and, of course, mr. Cuban has his own unique perspective on things because he had a little fracas with Insider Trading accusations proven untrue in cow. Readers have been gobbling up the tweets and reading all through them. An issue just discussing here. Allen, thank you for now. Take care, kelly. Appreciate it. This past weekend many of you have spent some time in home depot or lowes, the two leaders in retail Home Improvement. Up next we talk to the british Home Improvement store and well get a look at the strength of the Global Economy from the other side of the pond. Fu futures move first. Learn futures from experienced pros with dedicated chats and daily live webinars. And trade with papermoney to testdrive the market. All on thinkorswim from td ameritrade. The numbers are impressive. Over 400,000 new private sector jobs. Making new york state number two in the nation in new private sector job creation. With 10 Regional Development strategies to fit your business needs. And now its even better because theyve introduced startup new york. With the state creating dozens of taxfree zones where businesses pay no taxes for ten years. Become the next business to discover the new new york. [ male announcer ] see if your business qualifies. Theyre the days to take care of to disbusiness. New new york. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink® your link to whats next. Welcome back. If you live in the u. S. Youve probably been to home depot and lowes but what about the Third Largest Home Improvement store in the world, thats king fisher and joining me now the ceo of king fisher joins us here on the floor of the new york stock exchange. Ian chesire, welcome. This is a great opportunity for me to our investors here. You operate primarily in europe, including eastern europe. What can you tell us about whats going on right now in france . Well, france is probably the one sort of mystery and question for us right now and what were seeing in the rest of europe, uk is up and places like russia despite the situation are actually in good shape. Theres a question of customer confidence, not happy about unemployment and where the government is going in terms of fiscal policy so they are sitting on money at the moment and its a very difficult market to read right now. How do you plan for a european uniion the union of which is being hotly debated and when you have Great Britain talking about potentially splitting up . Two things. One from the economics point of view we know that the Different Countries move at different speeds and were constantly looking and retail is very much week by week so were constantly adjusting. I think on the longer term question the role of the union and euro and broughter eu does need to seem. Its essentially a wakeup call and europe has to be reformed in order to be supported by the majority of its citizens. Thats eminently possible and something we should do because the market is really critical for us. Why should home depot look into a tax inversion . I dont think thats probably high on the list and were getting our business the same way we always have. Do you have these discussions as you watch other industries and realize that you may well be a target for that kind of activity . Our company, we will maximize our value of business over the longer term. We just have to run it the best way we can and that what weve seen with some of the other approaches its clearly made this topic more sort of, if you like, fashionable, but i dont think its something we spend any time worrying about. Another fashionable topic is whether the United Kingdom is in a housing bubble the likes of which the u. S. Has all been through. I dont think its happening in the uk, what were seeing is the london effect outside of the 25 ring roads that actually the Housing Market is not really moving that far. What we have got an issue within the uk is lack of housing supply and thats really the thing weve got to address. The planning arrangements which means theres not enough homes being built, unlike the u. S. Where the supply of kickbacks fill in pretty quickly. Im sure your business would benefit from that. Thanks so much for being here. Really good to see you on the floor of the new york stock exchange, sir ian chesire. A look at whether apple delivered at its Developers Conference. Well take a short break. If it becomes simpler. If frustration and paperwork decrease. If grandparents get to live at home instead of in a home. The gap begins to close. So lets simplify things. Lets close the gap between people and care. Im spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast . Go to ziprecruiter. Com and post your job to over 30 of the webs leading job boards with a single click; then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. [ female announcer ] over 100,000 businesses have already used zip recruiter and now you can use zip recruiter for free at a special site for tv viewers; go to ziprecruiter. Com offer2. Welcome back. Cnbc has been live at apples worldwide Developers Conference. Several big announcements for the Developers Community and how it affects the millions of us. Lets check in with the koe founder. A minority stakeholder in rico. Walt, its great to see you. Were you dazzled by anything . You know, i think they did some really interesting things. There were a few catchup things like the ability to put widgets on an iphone which have been on android for a while. There were new things where they moved ahead. I think the most interesting one to me was this thing theyre calling continuity where to strengthen the incentive that you might have have own all their different devices. They have got new Software Available in the fall where you can be in the middle of an email or document on an ipad. You can it immediately pops up on a mac anywhere within 30foot radius and continue writing it on the mac and switch back to an iphone. They all work in concert. I thought that was probably the most unexpected thing on the consumers side that i saw there today. Let me ask you this. Is this not the most boring wwdc you have ever seen . I mean, theres nothing about hardware. Were talking about software where a lot of stuff we cant imagine happening on the app store, they could be developed through standalone apps. Remember what happened with maps and how that worked . We all went back to google maps. Where is this excitement and how does it relate to other i dont know if it was the most boring no, i dont think it was the most boring i have ever seen. I had zero expectation there would be hardware. There hasnt been in a couple of years. They tend to now use it for software to announce their new platforms, to give the independent developers a chance to move over the summer to develop new apps to use new apis in the hardware announced in the fall. So i dont know i dont agree with you at all. I dont agree with you at all on that. Walt, this is kayla back at the new york stock exchange. Im wondering about the k competitors. There were some tweets about how some of the messaging software of the app and box ceo was complimenta complimentary. I wonder if you see apple being more of a competitive threat or if youre seeing then as working together with some of these companies a little bit better through what you saw today . I think its cooptitian. The i cloud drive is something long over due. Its all in the background. People who use these devices use it every day and they dont know it. Now theyre make ing it visible and keeps them in direct competition. Google drive. But theyre letting on the other hand, theyre letting apps bring more prominently to the surface sharing opportunities like pinterest and box that werent easily used unless using the separate apps those companies had before. Thats why aaron levy said what he said. Theyre doing both those things. Its been steve jobs had a very strong point of view that he didnt want to create a file system in the cloud which is what fox and drop box are and the new regime is basically saying we think we need to do that now. And we need to be visible in that cloud arms race. Thats what theyre doing there. Walt theres one other really big thing they did here. Is it the language . That i think will have yes. The huge implications, theyre changing the whole developer system. What does that mean . Yeah. Heres how it was described to me in some briefings i came out of. Theyre taking what it took to make an app on ios. On their platform. And theyre making it much thinner, much less code that you have to write and you still get to the same place or a better place even. Theyre saying its going to speed up the development of apps. Going to let people write a whole lot less code and let people with less training write these apps. Now, you know, i dont know if any of this will turn out to be true. Thats their plan and intention. Thats what this new Development System is. And it did seem like the developers thats a big part of the go ahead. Walt, quickly. I know we have to let you know go. Okay. So you know, i mean, to me im sorry that it was the traffic made it hard for me to hear what you said. Basically what this is all about is keeping apps first or at least tied between ios and android despite androids greater share. What i see as a commentator is app after after continues to come out first on apple or at least at the same time as it comes out on android. Even though apples shares so much lower. Its because its been easier to develop for apple and apple users tend to spend more money on apps than android users. What they have done today is to try to keep ahead of that even by making even more atracktive for the developers to be on the platform. Good point. Thank you. From the conference in San Francisco. Is it fair to say maybe no big headlines but still Important Development . Not like nothing came out of it. Heres important. What it does is set the stage for Product Innovation for apple. So the real question for investors and why people turn to people like walt is to understand whether or not this is going to be the next catalyst to drive a product cycle or any development in terms of applications for apple. Ultimately that matters for investors. Thats going to move the stock. Moving forward in the deliverance. Its so slow. Its such a long story. Isnt this a good example of that . I didnt tell you to buy it. I said believe in the United States of america. I believe that apple is a new company. Come back in the fall when there will be product announcements. Are you buying apple here . Were already a fairly large shareholder of app. Anyone else before we get you go . I love the banks. The industrials. I believe in america. And i think america is going to have a great third and Fourth Quarter and take it to new levels. This would be a great message if it didnt make me worried it was some sort of kos mick market top. Fast money in just a few moments. Melissa lee with a look at whats on top. Talking about china and what the new epa missions rule might mean. Of course, we are trading apple. I was going to say, no one does it better. Over to you guys. Fast money starts right now in new york citys time squares. Our traders are tim, anthony and guy dadami. Apples new announcement. Its worldwide dweveloper conference. Lets go to josh with all the details. Josh. Melissa, big crowds at this Developers Conference. They were lining up while it was still dark out. 5,000 developers. 1,000 apple engineers on hand. And speeches by apples t