Transcripts For CNBC Closing Bell 20140609

Apple has its that were talking about. 17,000 and 2000. Some names ripping 230 on the big merck deal. Well talk about that coming up and big newsmaker interview coming up. Tyson ceo donny smith, thats right, hes breaking the bank and winning the bidding war for hillshire brands, paying a whopping 7. 8 billion for the maker of jimmy dean sausages, among others. Why was he willing to go that high . Well ask him about that and more in an exclusive interview. Thats a lot of pork. Also on closing bell exclusively Electronic Arts Ceo Andrew Wilson live ahead of the much anticipated e3 conference, making news at this hour as wilson tries to turn ea around. And buffeted by talks and Federal Reserve officials, the damage up as much as 45 points before turning briefly negative a few moments ago. Now its up about 12 points. Take a look at the nasdaq which is up about 8. Thats the one, again, where were seeing some support from some of the smaller momo quote, unquote names and the s p 500 adding shy of a point. 1949 after a week where we hit repeated historic highs. Joining ours Closing Bell Exchange samir mad isa from wells fargo and jerry webman from oppenheimer funds, adam for good from hightower and our own Steve Liesman and Rick Santelli as well. Adam, to you first. What do you make of this continued creep higher . That seems to be the way were going almost unabated. Well, if you look around the marketplace, you can see a lot of Different Things that lead us to believe that the pe ratios are going to move higher. Stronger u. S. Dollar is good for pes, low inflation is good for pes so i think in general thats what were seeing is this creep higher because volatility is low, the Central Banks are accommodative and pes are in a multiple expansion cycle that i think is probably going to last for a few more years. Samir, do you agree we have a couple more years to go . Are you putting people more and more into stocks here . I would agree with the macro outlook but one thing you have to be careful about is people forget that the s p this year was at 1740 at one of the lows and the other was at 1820 so a couple of chances to try to get into stocks and we think probably in for another one of those consolidations maybe breathers, if you will. Here you want to be more opportunistic and hold a little bit of cash with the idea that youll put it back into stocks at maybe slightly lower levels. Maybe, rick, because, youy know, yields arent all that attractive around the globe. I mean, were talking about the spaniards can now borrow money more cheaply than we can and who would have thought that six to 12 months ago. I dont disagree but i think theres a lot more to the Interest Rate picture than just expressing it in terms of what the yields r. Theres talk and we would see countries like switzerland with negative yields and see the ecb putting a deposit rate negative even though the amount on balance in 2012 at the ecb went from about 860 billion euros to its present 32 billion so the negative rate is really affecting a much smaller amount but its more about the price depreciation. Thats where all the kick was for 2014 for many of the rallying sovereigns whether its the guild, the bund or treasury. Could you say thats a oneoff situation, but it doesnt dismiss the point that you cant look at the equity markets or the fixed income market other than comparing significantly similar time frames, so whether its 2014 or the next six months, the possibility, i mean, consider france is a double aa, a 1. 70 tenyear. That just doesnt square with a uk guild and u. S. Tenyear around 2. 60 and 2. 70 respectively, so theres a lot of dynamics whether its relative arbitrage or just the outlook for growth is not a sustained nice wide fat. Jerry, youre shaking your head. I think rick is right. Got to look at the bond market and stock market together. The bond market across the board is saying we dont think theres much else you can do. Inflation is not a problem and in europe at least the ecb said forget about credit risk so with lower growth and lower inflation in the u. S. And both of them equal on perceived credit risk why wouldnt yields be lower in europe than the United States. Steve liesman, what really do you think this says . Is it that the growth picture around the world is remains as bleak as some people fear deflationary fears around, what is it . Why are we talking about the spanish step year below ours . I think growth is a part of it but i put that aside and make it a completely secondary situation. People lock at u. S. Yield and say what does it say about growth . I think primarily yields are long yields are concerned with inclinationry outcomes, and bottom line is the european inflation forecast is considerably lower than the u. S. Inflation forecast and kind of go on 2 , our latest survey shows an under 1 forecast for inflation in europe or the or in the eurozone so i would look for a signal about inflationary expectations from long bonds, much more than i look for growth. But, steve, france is only about 40 basis points different on their cpi versus the u. S. It doesnt explain 100 basis point differential with similar ratings. I think current. And when you look at germany, its completely indefensible to come to that conclusion, and i think inflation rates have been creeping up while rates have gone down the last three months. Rick, i hate to agree with you and i think youre right that the differential really is less on inflation than it is on growth potential. Remember, real rates do matter, steve. It matters what my alternative to putting away money for ten years is, so a steep yield curve sauce we have better expectations later in the future, kind of metrix separating the two but i think youre seeing a clear accommodation. Two and why spanish yields are so much lower. I want you to help us try to understand this that ties all of this together. Today the in box is full of nodes from different economist and different parts of the street all kind of saying the same thing. Analyzing fridays job report and putting all the pieces together in the u. S. Saying maybe growth is there and will pick up in the back half of the year and maybe it looks okay and theres talk about the fed maybe needing to exit so why amid all of this our tenyear remains roughly unchanged . In other words, are we blaming europe . Something else going on . Can you explain this . Again, to me the only theory that works are inflationary expectations which are slightly different from ricks data which is looking at current data. I think its the outlook for inflation and i think its relatively muted in the United States and the growth data jerry, i dont know that we real disagree. I think what the bond market looks at, the long part of the bond market, of course, is what the inflationary implications are for growth down the road and thats why it looks at growth. Thats a secondary but not unimportant consideration. Thats a fair point. Theres an additional factor here that we should watch. Theres the opportunity cost issue, the what else could i do with my money and people are still fearful. Stock market and so they are not so they are not running away from the bond market. Samir, you were saying . People came into the yield really bearish on the bond market. One. Things you have to keep in mind, bonds have rallied and you have gone from lets say consensus being a little bit pessimistic to being a little bit too optimist nick my opinion so you dont ignore sentiment in all of this. People were mispositioned coming into the year and people find themselves a little too love in love with bonds. Who was on the other side of the trades, sghod for every short theres a long, im sorry. I still dont think that the positions being wrongfooted is an emotional issue to be sure but for every long theres a short. And one other factor we need to discuss and the other factor is supply and demand. The u. S. Deficit has been coming down and meanwhile one of the characteristics of the past eight years is the real paucity of safe haven assets and when you think about whats happened to the American Public view of the housing market, no longer considered a safe asset. Destruction of Balance Sheet across the financial spectrum, there isnt enough debt around for people that want riskfree assets. I wonder, adam, you know, if you think we creep closer to 17,000 and as weve had rates start to move a little bit higher as well, you think that thats enough at least a psychological level that that starts to get people to put money out of the bonds and rotate into stocks to try to ride this thing even higher. I think it will be a slow process, you know. When youre dealing with investors they tend to make decisions with the very lagged effect on the upside, a very abrupt effect on the downside and i think its going to take more time before you see the the Retail Investors start to real pile into equities, but i think its coming because if you look at forward 12month earnings per share growth estimates for the s p, they are at 12 , and if were at a pe expansion cycle, the market could rip a lot higher from here if it continues, and i think that eventually investors are going to have to get in, and thats the point when we start to get a little bit more concerned at am, just in a word. Are you worried about a meltup for the market here . I am a little bit worried about it. I think we can get ahead of ourselves because of the correlation between a stronger dollar and u. S. Pes and then what the ecb has done in europe is certainly going to be great for a lot of European Companies as well, especially exporters. Its a great point, and, yeah, who would have thought that that would be qualified as a concern these days, scott. There we are. Thank you, guys, really appreciate it. 50 minutes left before the bell rings, dow holding on to a gain of nearly 13 points. About 63 points away from 17,000 on thedown. The s p moving slightly higher as well, though its a fractionial move. Two wall street heavy hitters coming up to he have you navigate the markets. Wait until you hear where they see markets in the economy going from here. Also ahead, apple below 100 a share no, way. No need to panic. Apples seven for one stock split taking effect today. Is now the time to get in . Plus. Its pretty remarkable. Were in, you know, in the billions in terms of how big the company is. That, of course, is the ceo of uber. Speaking exclifls on friday, bullish on his companys 18 billion valuation but will an array of antiuber forces around the country put a dent in those growth prospects. 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Theres a look at picture on wall street, fractional moves across the board. We thought maybe wed take a run at 17,000 today at heat not yet. 45 minute left in the trade. Never know whats going to happen. Bertha coombs is covering movers for us today. What can you tell us, bertha . A pretty big move to 17k and merger mania helping to fuel the bulls on wall street. Start with idenix on news that merck is buying the hepatitis c drug. Tyson foods offering 63 a share now for hillshire brands topping last weeks bid by pilgrims pride and its own. The bid is contingent on hillshire ending its previous deal and Family Dollar adopting a oneyear poison pill with a trigger of 10 two days after carl icahn reported a 9. 39 stake in the Company Making him the companys largest shareholder. Icahn tells reuters that the poison pill is a perfect example of attorneys earning fees and well end on apple moving a bit higher in the first session after trading at a 7 for u. N. Stock split. You can see they are up more than 1. 5 on the day. A decent move in this market. Thank you, bertha, and a reminder well have tysons ceo joining us next hour and meantime on apples prospects. Tim lesko joins us, a Portfolio Manager and advisers along with David Garrity who is principal at gba research. Welcome to you both. Why the pop on the share split today, tim . Well, i think from apple you have the standpoint of a stock split. Stock splits open up the stock for a wider breadth of shareholders but apple remains a really cheap stock so i think that shareholders continue to recognize it and those people who are perhaps waiting for the stock split in order to buy some shares are finding that opportunity today. David, history would suggest that in the meretime a stock after splitting goes up. Apple is now approaching 100 bucks. When does it get there . I think it probably gets there before we see the introduction of the iphone 6 in september and i think the extent of the timing of this, it makes a lot of sense because obviously the iphone 6 launch is a big retail event and splitting the stock makes it more within the reach of a Retail Investor to possibly go out and buy a round lot so from that standpoint can you get a pop in your stock and pay for the iphone at the same time. Before september. I thought you were going to say it will get there at the end of the week. Thats like 7 bucks a way. Thats theed aage, when a stock goes to 90, it usually goes to 100. Exactly. Tim, its still a showme story for apple, right . This goes well beyond what they are doing for a Balance Sheet and split their stock. At this point we want to see products in the pipeline and innovation coming out of the pipeline and more than iphone 6, i would presume. Well, right. I think they showed you that innovation during the developer conference. These things are gradual changes. If they will offer products where they have ios on different screen sizes and devices give the Developers Tools to develop that. What apple showed last week showed theres a lot to come and they relied on the companies to develop great products. I think they showed something last week that the street might even be ignoring. David, some cases were asking too much of apple to have all the developments in the pipeline and products like the iwatch that people are putting into their models with the company not announcing a word of it yet and yet at the same time it shouldnt make any difference to the companys fundamental valuation the number of shares outstanding. No, thats true, but you do have to consider sort of like whats the breadth of the investment audience that the company can access with their share price and i think also, you know, there have been some recent transactions, however, critical people might be at beats electronics. This is a business that basically comes back and strengthens them in an area thats important to consumers, namely music and what we can d hear out of Developers Conference is maybe give us better visibility in terms of where the company can be innovative and the Company Pipeline Going Forward and iphone 6 will be a major event driving near tomorrow profit performance on bottom line and sentiment on the stock price in the market did you raise your expectations when eddie q at the code conference talked about the best product pipe hine in 25 years . May not have raised the expectations but i certainly found it heartening. Well, thats a start. Tim, what about you . I think i feel the same way. Apple in and of itself as it is is trading 14. 5 times earnings, a cheap stock. Returned a lot of cash to shareholders so theres a lot to like about what is current in apple and they continue to give us grade significant unless as theres a lot to like whats forward. Finally, tim, do you think that shares go to 100 more or less on this kind of narrative or because something concrete happens in the next couple of weeks to get them there, if thats where you think they are going . I wouldnt say that i would expect anything concrete happening in the next few weeks. Were a little ways away from the Earnings Announcement so it perhaps moves in that direction just in the kind of news vacuum it might be in for the next six to eight weeks if there is an apple news vacuum. Well they have it there. Thank you, gentlemen. Head over to cnbc. Com and take todays poll. Were asking will you buy apple now that its under 100. Check out votes so far. Over to Bertha Coombs for a quick market flash. Bertha . Scott, watch International Game technology, stock soaring after reuters report that the company is exploring a sale working with Morgan Stanley. The stock currently up 18 on the day. Thats a huge pop there. Back to you. Many headlines out of there. Thank you, bert that. 40 minute to go before the bell rings on this rainy monday. The dow pretty much holding steady. 16,941. S p is up a whopping point. You know, there is a correlation often between whats happening outside and how shares do. Yeah. Or maybe its just the red dress. Maybe. Sentiment. In any case. Should have worn my green tie. Supposed to even it out. Tyson winning the battle for hillshire brands, but will it win the war for higher profits in the companys ceo speaks exclusively in the next however the show about the increased bid for hillshire and when and how he sees it all paying off. And up next, uber ceo speaking with kell on friday and putting an 18 billion valuation on his ridesharing service, but could that number take a hit from opponents who contend the company is wrongfully encroaching on their turf. Well hear from a few of them just after the break. 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Were, you know, in the you know, in the billions in terms of how big the company is and what kind of activity were doing on a yearly basis. Folks want to be able to push a button and get a ride very quickly and if you can make the economics work so that its actually more economical to push a button and get a ride than it is to own a car, well, then a lot of people are going to do it. Well, ubers success isnt sitting well with everyone. Virginia is trying to ban the company from the state and in San Francisco the Taxi Cab Association is predicting uber could put them out of business and if these groups have their way it could change that valuation. So robbie worth is the president of the taxi cab, limousine and Paratransit Association that deals with virginia cabbies. Welcome. Han su kim is the owner of the de soto cab company in San Francisco and people have said the San Francisco cap industry is effectively on the verge of collapse because of Companies Like uber, is that true . Let me make it very clear thats actually not true. What is going to happen is Companies Like mine and others will move away from a regulated Business Model to a deregulated one. Unier is not playing by the same rules of taxi cab companies. While were highly regulated in terms of the vehicles and drivers and everything about how we operate, Uber Services dont have to follow those same rules. Which are you specifically referring to in this case . So right now taxi cabs have to have commercial insurance. They need licensed drivers, the type of vehicles have to be inspected. The type of model of vehicles are regulated, and so if i, myself, as a tax company were able to determine that i can charge whatever i like, put out as many cars as i want, decide who gets to drive the car what, commercial insurance i will have or not have, of course ill be far more profitable, so the problem with Taxi Companies are that were following a very high stringent set of regulatory rules, and these new services are not. Robbie, whatever happened to free and fair competition . I mean, if theres somebody out there in the Economic System that we live in and thrive on, if somebody can do it better, why not open it to everybody for competition and then its a real competition . Well, the taxi industry is not one thats being singled out for competition here. Uber is not competing on a level playing field. Uber is not they are unregulated. They are not providing commercial automobile Liability Insurance 24 hours a day, seven days a week. Their drivers are not going through a licensing process that requires you to have fbifingerprinted analysis, and also they are not providing services to all sectors of the community. People without smartphones and people without credit cards and the Disability Community. The issue with disability is one in particular. I know theres more focus on not what happens if Companies Like uber and Ridesharing Services like lift compliment the existing Taxi Services and the fact that the very success threatens the existence of these Taxi Services. Why cant they both in a market to make sure that those customers are served in a way thats so critical for them, especially for people with disabilities . If they are in the market and same market and they have the same rules and regulations as other commercial carriers, if they have the same level of insurance, if they are operating with primary commercial automobile Liability Insurance and their drivers are being screened the same way, and if they have a level of service for the Disability Community that is in a city that requires a 10 of taxi cabs or wheelchair accessible, then uber should be 10 wheelchair accessible. That makes it a level playing fold. Can i just add to that that quite frankly Services Like uber and other referral booking companies should be complementary to taxi cab service. Youve got a previous guest earlier today on cnbc from get. Excellent app Companies Like flywheel that are following the wheels. They make sure that the person picking up the orders that they book are licensed, the vehicles are inspected and can pick up. Companies like uber are not playing by the same rules so im all for fair competition and using technology to better serve the public, but everyone has to play by the same rules. Ubers evaluation is based on the fact that the industry is going to be deregulate and as we speak now in San Francisco there are thousands of cars on the road, you dont know who is driving the car. They are taking their personal cars and acting like a public passenger vehicle. Thats a variation, and i totally understand you guys are right. Its the same thing playing out with tesla right now. Have to change the legislation or play by the rules to sell cars directly, but at the same time you have to acknowledge this is something we do every day. We give people rides, you know, we have passengers in our car. We drive cars we probably arent insured to drive. Theres an element of this that is just acknowledging the reality in this country and making sure were not inhibiting a service that people genuinely want and need because of these technicalities. Let me just add theres a company in San Francisco called flywheel that the taxi industry has embraced, looks like they are coming into the United States as well. These companies play by the rule. Their service is as good or better than uber but they make sure that the speaks picking up the public are licensed, the drivers are licensed and vehicles have commercial insurance. Uber does not so if were talking about a fair playing field. If you look at the competition uber faces, the regulations will catch up with uber. If youre going to play by the rules, thats great but if you determine your own rules, do we want venture capitalists to determine who gets to pick up the public and let them determine the rules . Is that the public is the one who is deciding by using Uber Services or traditional taxi cab . I will let you know that that is now actually a lot of lawsuits because guess what, that driver picking up the public, does the public understand that that driver is not licensed, not accountable. Does the public understand that when uber picks you up in an usher x vehicle that vehicle doesnt have commercial insurance so as the public becomes more informed i think that their competition that plays by the right rules are going to take that market share. Robbie, last question, but this isnt insurmountable for uber, correct . They can act accordingly. The market will shift as consumers become more aware of the risks involved. Does that have to be the end all for a company like uber. Is it simply going to be part of their growing pains . I think what uber and lift need to look at is the fact that a driver during his the course of his day is doing work for uber or lift or possibly other app services but hes also doing personal calls, hes also doing pikus. Hes out on the street all the time and as long as he has commercial automobile insurance got to buy commercial insurance . What do you think . Half an hour to go until the close. The dow is hanging in there, up about 17 points today. A point or so added to the s p 500. It is sitting at that 1550 mark, scott, and the nasdaq adding 12. Up next, two of wall streets top pros weigh in on the markets and the economy so where do they see the fed raising Interest Rates or when . And later video came eas ceo is speaking to me live from the e3 conference in los angeles. Pretty busy day for the Company Unveiling half a dozen new games while settling a highprofile lawsuit with the ncaa. What he says, of course could, move ea stock so dont miss it. Well be right back. 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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. Okay. Welcome back. Thats where the Dow Jones Industrial average currently sits with about 25 minutes left in trading. Thought maybe we would take a closer run at 17,today, some data around the globe, china and japan came in better than expektd, but weve pretty much been sitting in a fairly tight range for much of the day, kelly. S p sitting on that 1950 mark. As we look at the round numbers, dow 17,000, our next guests have somewhat different views on where the markets and economy are headed. Joining us is the chairman, president and ceo at steve wolf financial and anthony chan is the chief economist at chase. Gentlemen, welcome to you both. Ron, ill begin with you first. So what are you thinking about these days as you watch these markets do this slow creep higher in. We, look, the markets i think are barely if not slightly highly valued in this environment. You know, long term im billish. In the short term though i think that the number one thing that im concerned about is complacency, the vix, and people dont even talk about the vix anywhere more but the vix is at 10 and i think that complacency is a risk to the market. Youve got modest growth. Youve got earnings that maybe are a little bit elevated all in the short run. Im a little cautious about this market. The only worry i hear from people is that no one is really worried about anything. Exactly. And the question is that a real wore . It has been in history. Yeah. You know, i dont know. Its a real concern. There is such an apparent level of complacency in the market that you really have to wonder if at some point theres going to be a comeuppance at some point just given the move that weve had and whats taking place in the bond market as well. Well, look, again, i think that the vix is at historical lows and the market, even on an inflationadjusted base sis at alltime highs. You know, its pretty good. I see a longterm bull story, but in the short run im talking about the next three months and how you see a little bit of consolidation and maybe even a correction in this market. Just as much as people have been, worried about a speed up scare. If thats the case, why isnt this sense of maybe a better than expected economy, better than expected markets being reflected if, for example, in the bond market here. I actually dont believe that the economy is going to overheat. In fact, i think if there is a risk, the risk is that some of that deflation that were seeing in europe can be exported to the United States and thats one of the reasons why i believe that the central bank has to be careful and not rush things. In terms of the bond market, theres a lot of noneconomic buyers out there. The Federal Reserve owns more than 45 of the Long Duration bonds. Global Central Banks are buying, Pension Funds are buying, so all that demand and less supply because the deficittogdp ratio will come in below 3 this year, no wonder that were not seeing the bond yield rise. Do you think as fed officials cast their eye towards the exit they are potentially being too hasty here . Just as many people are arguing they are behind the curve. Again, they havent done anything significant. The tapering i think is fine as long as they continue on that measured pace and sometime this year. The question is not even whether they raise rates in the middle of next year but rather how aggressively they raise rates. Weve heard from many officials that now the Interest Rate that they were going to end is probably going to be below 4, 4. 5 . I think thats what we have to be careful. Ron, i wonder what you make, if anything, and im assuming that you heard David Teppers comments last week that some of the fears that he had of, you know, a month or so ago, that it was nervous time, have been alleviated to a certain extent given the ecbs action, the elections going off with not much of a hitch out in the ukraine and our own Economic Data showing that there at least seems to be some pretty decent things ahead. Again, you know, the bullish case is a different one, and what it is is that technology is going to cause capital to get more returns than labor and what i mean by that r, we have a ran a lot longer than we think. In that case you could argue the risk premium to be 2 , equalling a 22 times the market, 2200 on the s p. In the short run though i dont think it will play out in the next three month. I think this market is a little ahead of itself considering the short run fundamentals. The Second Quarter, the growth were seeing in the Second Quarter is really in many ways just whether the inventory and things we didnt see in the First Quarter. Ron, before we let you go. Almost out of time here. Despite that somewhat roque environment you describe, are you guys still being inquisitive, still growing the business, still going to be buying things the next couple of months . You know, look, we are, and i do not have our Business Strategy based on the next three months. This conversation is talking about maybe the next three months. Longer term im a bust. Im a bull in many ways. I just think that like always markets go up. Markets go down. I think in the next few months the risk of the market going down is greater than it having a robust case going up from here. The cardinals are five games back. Can they make a run before september . You know, look, the cardinals the cardinals will catch the brewers. Ive lived in both cities, and i just made some of my friends in milwaukee not happy. All right. Good to talk to you. Good to talk to you. Thanks, guys. Appreciate it. 15 minutes to go until the close, a little more than that this hour. The dow up 16, and the s p and nasdaq adding a few minutes and the vix rebounding off of its lows and keeping an eye on some of the smaller names, some of the biotech space is really popping. Next, dominic chu with a special report on integrated Oil Companies that do everything from exploration to filling up your gas tank. Find out which ones are at the head of the pack that could boost your bottom line next. Later the buyout of the day, tyson foods blog pilgrims bid for hillshire brands out of the water. Just ahead, what louis ahead for the meat processor . i always say be the man with the plan but with less energy, moodiness, and a low sex drive, i had to do something. I saw my doctor. A blood test showed it was low testosterone, not age. We talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. Axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. Women, especially those who are or who may become pregnant, and children should avoid contact where axiron is applied as unexpected signs of puberty in children or changes in body hair or increased acne in women may occur. Report these symptoms to your doctor. Tell your doctor about all medical conditions and medications. 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Heading into the close here and despite turning negative around the middle of the day, markets fighting back, not huge gains, but were seeing small positives across the board, scott. Dominic chu has been highlighting important aspects of the Energy Sector all day. One of the best performers all day and joins us now with the eyeopening report on integrated Oil Companies. Kelly, scott, yeah, all day all different parts of the oil and gas trade, we looked at the various parts of the stream, if you will, from upstream or the exploration and productiontype companies, the ones that get the stuff out of ground and all the way to the downstream Midstream Companies that take the raw product and refine it into things like gas line and finished products and eventually sold to end users. There are Specialist Companies that do each of these tests individually now. There are though the big guys also who do everything. They are called the integrated oil ones. Integrated oil and gas companies. They are the ones with a maime that implies everything that they do. Overall these integrated oil and gas industry groups, they are up just about a percent year to date so they are relative underperformers. You can see right there. Thats doing no small push to the giants that are both underperforming in the Energy Sector and in the s p 500 as a whole. You can see the bigger they are the bigger they drag on this index and while exxon is trading where wall street targets are sitting chevron could have a 6 upside if all of the analyst are correct in the average price target. Those are the big guys, but lets talk about the Energy Sector over all and you finish the Energy Sector look with some making new 52week highs as we struggle to make new ones in the overall market. These are stocks that have made at least multiyear hires. On the oil Services Side youve got halliburton at a record hoy or setting one and baker and schlumberger at other multiyear highs and big names like hess, on the integrated side, apache and new field exploration as well. They have positive momentum, so that wraps up our look at Energy Sectornomics and hopefully youve learned where the Companies Fall on the overall stream in the energy trade. Back over to you guys. Dorge thank you so. 12 minutes to go before the close on wall street. Dow jones up 15 points, and the s p up less than a point much more ahead on marks as well . Next hour of the show the ceos of tyson food and ea speak with me, tyson winning the bid for hillshire. Well find out why the company went so high to pay up for hillshire and ea with on the biggest gaming conference of the year. Lots to discuss. Fame, puts you there where things are hollow the evolution of luxury continues. The next generation 2015 escalade. 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I would be a little more concerned about that. We are seeing the economy Getting Better but i want to see i love that skepticism. I love the fact that this is the Rodney Dangerfield of all bull raggies. Everybody gets gives it no respect at all. Thats what i want to see. Peter, isnt this a valid concern that the only one that no one seems to be worried about anything . Absolutely, and you know what is mentioned about this, this is the bull market that has no respect. I heard that we heard that 18 months ago. Its the same thing, been going on for the 18 years that the market is continuing to make new highs. You know, me personally, i think its time for me to get out. We get to 17,000. Are you getting nervous . I get nervous and i think, you know what, where else is going to go, up another 3 . Where are you going to go . The Economic Growth if the economy is really lifting off, this is just the start of another leg of the bull run, trying to argue with the bulls . Thats what im saying. Where else are you going to go . Are you going to go in cash . In cash right now. You have a very fairly priced market. Look at the pes on most of the s p 500, 16. 5, 17, anything above that becomes risky territory. I dont want to start risking my money in risky situations and i think the economy is Getting Better, but i think companies, they have all this cash. They are starting the only thing that they are doing right now is they are buying other companies but thats not really helping them with growth Going Forward for two or three years. The slow grind higher has been working. Look what is going up this month, everything cyclical has been rights as the Economic News last week was better, consumer discretionary, financials, tech. Everything else, Consumer Staples, health care has been lagging, all of the defensive names have been lagging. The market is acting like the economy is Getting Better. Small caps are finally starting to act like things are Getting Better, too. People are starting to think, well, you know what, i made enough money in x and now i have to look at something where theres more risk involved which is small cap and thats where a lot of the small cap money goes, to small caps because they are not going to get the returns that they got two years ago in in bigcap names so now they will go to a more risk investment, and i think that thats that to me is a little scarey. M a, another monday where youre hearing about that. Biotech, some stocks up 240 , ones being taken out by merck, but a whole sector, over a dozen stocks up in biotech area nearly 10 today. Thats just on additional takeover speculation thats going on, and investors seem to think that these things are worth a lot less than a company like merck going in and buying something you guys are both coming back for the closing countdown and well talk about 17,000 on the dow and 2000 on the s p, what that really means for the folks at home. Well talk the apple split as well. 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We needed the scalable Cloud Solution allowing them to see all 800 products and select what they are looking for. Now there is endless opportunity to indulge. Became big business overnight . Like, really big. Then expanded . Or their new product tanked . Or not . What if they embrace new technology instead . Imagine a companys future with the future of trading. Company profile. A Research Tool on thinkorswim. From td ameritrade. Back on the floor of the new york stock exchange. Doesnt look like the dow will get 17,000 for today. S p not going to get 2ness either but priest costa is back with us along with our own bob pisani. Does that matter, 17 and 23 . No, it matters for tv. 2000 on the s p. Were on tv so it matters. For you guys its important but as investors it really doesnt matter. You guys. But, you know, 2000 yo y doesnt it matter . Its ref tip of just where this market continues to go. Its a number. Why wouldnt 16,99 matter . It atome its a percentage, where your portfolio is, how much its up and the risk factor as it goes higher, thats what is important. Numbers are numbers. Strange rally that weve got, got to admit. The put call ratio is low, 0. 8. Very friends over there. Vix almost in single digits. Keep calling it the Rodney Dangerfield of rallies. The apple split. Yes. Was a big story today. Yes. People are saying okay its 90 something bucks. When will it get to 100 . Thats significant. People are looking at that stock as a regrabbing its leadership role. Regrabbing its leadership roelle and goes from having 300 million shares outstanding to 2. 1 billion so it takes a lot more for that stock to break through 100. A lot of activity and buying power to get that stock through that level. But its great for trading. Absolutely. Absolutely. And in its own subtle way it will have an impact on trading overall. So i think its fantastic. I think its a great deal. Unreal, bob, and you alluded to it yet again and significant in the vix. Up 5 and still only at 11. Theres complacency in the market. Well, you look at the vix up 5 . People are starting to lock at it and say maybe the market is a little toppy and maybe this is where we start putting money. I know you probably think the opposite and money going to the vix. That goes up to 12 or 13, you know. My point on the vix is that it may not represent real fear the way it used to because a lot of other ways. Very true. So just be a little careful about that. Guys, thanks. No record today, but kelly evans picks up the market story in ten seconds. Welcome everybody to the second hour of closing bell as we hit 4 00 eastern here on wall street. Im kelly evans and heres how were finishing up the day on wall street. Looks like were going out with small positives. Pretty much all of the major indexes have hit the major averages. The nasdaq is up 14 for its part to 4336 and the s p 500, a couple more points just shy or show to 1951, of course, at these levels people are already looking for 2000 for the s p and 17,000 for the dow so let get right to it with todays panel. Joining me is steve forbes, the author of the new book money, how the destruction of the dollar is threatening the Global Economy and what we can do about it. Appreciate that almost uplifting second part of the clause and also with the cnbc contributor carol roth is back, Kayla Tausche and dom chu down here and with us for more on the markets fast money trader guy adami. Guy, another day another creep higher. Hi, kell. Is this going tonight way that it is . Last time i was on but we had somebody on who said the pain trade is later. I said not so fast. I said the pain trade in the s p is probably hour and thats what continues to happen. If youre bearish, a couple takeaways. The vix had a bit of a rally. Peter najarian is on the show later and will talk about that. Maybe the iwm, the russell has gotten to levels at 116. 5 and 117 where you look to short it again, but, you know, the s p still wants to make this grind higher. I still think the Global Deflation is going to be a problem and youre seeing it manifest itself in lower rates. Globally all of a sudden people wanted to talk about spanish Interest Rates, but until that manifests itself the s p grinds higher. Steve forbes, when spain is borrowing at 2. 5 , what does that tell you about the world . I think those rates are still artificially low, and i think its only a matter of months before the Federal Reserve starts to allow Interest Rates to rise in this country so we start to get a normal credit market again and really get this economy moving. Are you surprised it hasnt happened yet, dom . It hasnt happened because the fed has not said it will happen until we get some real signs that the economy is Getting Better. I would also point out that Interest Rates is lower and through the developed world because of the action of Central Banks because there isnt a real threat of inflation. Thats a real keep. Remember with europe you can have spanish tenyear government bowles yielding 2. 5 for just under u. S. Government bonds because there really isnt inflation in europe. Right, right. Even though there is some here. Heres why i ask. The u. S. Economy is ramping up at last. The fed is closer to its goals than it has been most of the time since 1960 with regard to employment and inflation. Others are talking about the exit strategy and deutch bake is saying the more rates market believe in the lower fed funds story the more it will be wrong, you know. In other words, everyone is kind of coming around to this idea that maybe there is Sustainable Growth in the u. S. Economy today. And i think the fact that youre seeing that across the board given a lot of these people that you just mentioned have come at this market from very Different Directions over the course of the last six months. To see them all on the same page is somewhat surprising especially when the market has already run up the way that it has so far this year even though it has had some air let out of it at certain point of the year. What is most telling about the environments . Very interesting. The former investment banker, im focused on the m a activity and the timing of the m a activity. A lot of Companies Taking advantage of the fact that they are low and they can borrow very cheaply. However from a valuation stand point, the companies that they are purchasing are at higher valuations, more robust evaluations so they are looking at what we like to call synergies which is a fancy way of people saying they are going to lose their jobs at the end of the day and thats what is concerning to me as we look at the effect down the road from these kinds of high buys where youre relying on synergies and costcutting. What does that mean . Good for wall street today and maybe for main street tomorrow. The m a story is something of a contrarian to where we are in growths and markets and if companies do feel like they need to buy growth and buy it in big fashion then obviously their expectation is not that its going to come organically at least for the next few quarters so its interesting to see the rush to the New York Times this afternoon, called somewhat frothy and especially in biotech and to see Companies Really going out on a him to get Revenue Growth. Also makes you question whether they dont have it otherwise. A look at how time did today, trading publicly as an independent company for the First Time Since 1990. Started the day a little bit weak. Down in the range of 4 to 5 , closing down less than 1 . Steve forbes, you think time is a god investment . Ill take the missouri attitude on that and show me. Maybe its because im too excited about the industry to get excited but the key thing is what they will do on the web v. To go very, very big on the web, virtually no web presence and know they have to do it in a major way. If they dont do that very quickly and convincingly hen that that stock is going to be in trouble, and in terms of the overall environment i think the most encouraging thing is that bank lending is moving up at a brisk pace that. Bodes well for small and new businesses and thats how you will get the job creation and i think that will overcome the synergy that carol talked about from the mergers. Steve, are you positive fundamentally speaking on the u. S. Economy, or are you worried about this sort of dollar destruction . Well, short term the economy is going to do better or like a baseball player thats batting. 175 or. 185 for the last five years, this year will get it up to. 250 or. 260, wont win the world series but sure will feel a lot better than what weve had in the past but there are big dead weights on the economy including obamacare and the fact that our Central Banks still dont know what they are doing when it comes to monetary policy, so for a few quarters well be okay and now practice will kick in again sadly. Do you take issue with president Barack Obamas move to forgive more of the Student Loan Debt out there or is that the right thing to do for the country longer term in. It all gets to the fact that this economy isnt growing. First youre going to see major changes, already starting in higher education. Parents are not going to be paying 60,000 a year except for a handful of institutions, and i think youre going to see in the next few years going to three years instead of the fouryear degree. Wow. Undergraduate degree and four years for a masters instead of five or six overall. So big changes are coming, and in terms of student debt, whether its student Debt Forgiveness or raising makes, things like that, they all reflect a stagnant economy. Prosperity cures a lot of social ills. Yeah t. Cures a lot of social ills. There is sort of a moral aspect, carol, to Economic Growth. Yeah. Again today though you want to talk about companies trying to buy growth right now works would have thought that it would be a u. S. Consumer company that would see a bidding war effectively pricing hillshire from 37 to 63 when all was said and done. Actually consumers is my wheelhouse so im not entirely surprised. I think a lot of names have lagged, the technology and biotech names so they are playing a little bit of catchup. That being said if youre looking at them from a valuation standpoint they are getting to that robust and photoplace but like you said the valuation increase for them to have that much of a bid increase is pretty interesting and then you also have to talk about Pinnacle Foods who ends up as a lureser because they were supposed to be bought by hillshire and now that deal is off the table so well have to see who may come in and be the next suter for Pinnacle Foods as well. Theres a lot of mergers and activities happening on the acquisition front for very specific companies and specific reasons. That means theres still experts, Company Managers and executives, who think that theres value to be had in certain parts of the market, whether it be in biotech, you can argue they overpaid or whether with hillshire and Consumer Staples products. So with the case of merck today buying idenix, theres a company that could have a onepill solution, totally understand what they are investing or potentially hoping to invest in. When it comes to hillshire, dom, im going to ask you as sort of the expert on the american diet or something. Is it worth paying up that much forever the maker of jimmy dean sausages and a lot of these other effectively supermarket brand . It was interesting because i was having this conversation with stephanie link not too long ago when there was the initial part of the pilgrims pride being part of the picture and the talk was they are paying up a lot for this. What it comes town to is how aggressively do you think tyson and or pilgrims pride needs to diversify their Product Offering or, two, cut costs or find synergies down the line to make Something Like that happen . If you feel commodity costs are on the rise and can you get scale to help contain those, maybe thats thats the analysis a banker does, you see what you can cut out from a costsaving standpoint and grow the top loin and see if it makes sense in terms of being acreative. If they can fine lots of lines to cut, it means jobs and duplicating Marketing Department and ceos, it means two people and we dont need two of them. What are you buying at . In three, Madison Square garden, it happens torrent. Thats what im laser focused on. Are you buying the rangers though . Ask steve forbes, love his magazine, by the way. Thank you. The one question i would have and i dont know what has time. What derails this rally and how plausible is that outcome in your opinion . Nerms of the stock market raly. Oh, the stock market rally is because companies have done very well in recent years despite sluggish economies. I think growth in the future in the market is going to come from a better economy. It cant come from just mergers, pe ratios improving and that kind of thing so fundamentals have to kick in, and in the u. S. I think they will kick in, at least in the short term. Longer term i think weve got to make some fundamental reforms on taxes, on money and on health care which will come in two years, if not starting next year. Steve forbes, thank you for now. Guy adami, great to have you with us. Be sure to stick around and catch guy coming up with the rest of the fast money crew at 5 00 p. M. Along with cheering for the rangers. They will ask Scott Stringer what they think of the netflix decision to vote down the chairmans role . The ea Gaming Company looked to keep momentum going with six new titles from the maddon franchise to Virtual Reality game the sims. And its official, all the jobs that were lost during the Great Recession have been recovered. Reports said though that the quality of the jobs does not equal those that were lost, but Steve Liesman has data suggesting that is not actually the case. That story is next on cnbc, first in business worldwide. Did you remember to pay the dog sitter . Yeah, citi mobile. And deposit that check . Citi mobile. Pack your bathing suit . Wearing it. Niiice bank from almost anywhere with the citi mobile app. Welcome back. Its been four months of gaining 200,000 jobs or more in the u. S. Economy finally helping to fill actually filling i should say the massive unemployment whole left by the recession but what about the quality of the new jobs. Steve liesman joins me now with figures that might surprise some people. Steve . Kelly, thanks, the general mantra is most of the jobs that have been created are low quality and that seems to be the case when you go back to the trough of the recession or the trough of jobs in february 2010, but wells fargo sent me some data late friday that suggested maybe of recent, of late, the last year, maybe were getting somewhat better quality jobs, and what you look at here is a chart that shows the percentage year over year change in wages. Of course there are places where there are low wages and strong jobs which are the low quality jobs, but if you look at, for example, the next screen right there, professional and business services, lawyers, accountants, those kinds of things, highwage growth and high job growth right there, construction seems to be doing quite well. The story here, if you break it down and look at by into thirds, a shirt of the wages has been in the bottom tier, a third in the middle and a third on the top. Soegs a much more mixed picture comparing to the beginning of the recession. Want to get some thoughts from our panel on this topic as well. In looking at this, as we separate out those stratas, if you will, of employment. Is this. Steve liesman is indicating or is it more evidence that the economy is being pulled upward and downward. Its starting to move up despite a lousy First Quarter and the tapering by the fed, job creators is a very positive thing. Like bleeding patients in the days of old by doctors. When they stopped bleeding the patients they got better. The economy should get a little better. One of the things i worry about is the sustainability of some of the jobs because they come from the revolution and whats happening in the middle parts of the country. Energy is completely skug the picture. Small Business Owners of this country are not seeing nearly enough of this money. I look at that data. I do not think that this is good news and we need to see better paying jobs across the board, more professional jobs and more Small Businesses being able to hire. The policies that keep coming out are ones that stymie growth for Small Businesses. There are places where the market is look. Look whats happening with retail. A lot of. Job growth in retail so i think to me when the market is working in a way that suggests some balance of supply and demand, looks like it was working in a way thats atheme exdemand and lots of supply when it comes to labor availability. So to me it makes me a little bit optimistic. Places like seattle is going to see a rise in that, based on policy, not based on organic measures. Wants to attract the eq and high iq type employer so they want to compensate them like that and i wonder if you think theres not demand for some of the new hires or not competition in other sectors so they are able to get away with this. I think so and places where you see competition you see good wage growth and the issue of minimum wage is interesting and something that will have to tees out of the data over time, but ultimately youll find that in productivity or in rising output costs so thats a way youll control for that over time. What im most interested in here is this issue of whether or not the job market is creating quality jobs or not. On the one hand you have the park time issue which bears watching. You have seen, again, over the past year more of the jobs that have been full time rather than part type. Again, that augers well. Picking out those positives. Dont late the haters get you down, steve. Plenty of them out there, kelly. I know. College athletes all over the internet. A settlement reached between Electronic Arts and former College Athletes about the use of their likeness. The ceo of Electronic Arts joins us next and later on closing bell the ceo of tyson foods joins us exclusively to talk about how he beat out pilgrims prides to land hillshire farms in a multibillion dollar deal. 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. Our onesecond trade execution is one more innovative reason serious investors are choosing fidelity. Call or click to open your fidelity account today. Welcome back here. Lets throw it out to cnbc headquarters. Bertha coombs has some things for us. Hey, kelly, a big merger monday and well begin with hititi microwave on news that the chipmaker is being bought for 2 billion. Thats 78 a share in cash. Netflix following its shareholders not to slit the roles of chairman and ceo. That according to dow jones. The stock got some 545 over the past two years so casino stocks hit hard. June gaming Revenue Growth in ma could you w mamau dropped. Stock upgraded from a buy to a neutral cite being expectations that loan growth will pick up and we eend on Electronic Arts. The ncaa reaching a 20 million settlement with former players over collegethemed basketball and football video games produced by the company. Such a big deal, these guys work real hard and go get an education and bring in a lot of minto the ncaa and schools. Lets send it out to los angeles where the e3 expoke is taking place. Hello to you both, julia. Kick us off. Its been a blur but, yes, thanks for having me. 20 million smeltment between thena and place. How will that impact you Going Forward . We reached settlements in the fall of last year. Since then weve moved away from the frnts and i think its great but probably doesnt change our strategy a whole lot. This is the first time you have two battlefield games in consecutive years, two years in a row. This is a bold move. Youre up against call of duty and how can you really compete with these games. Great games bring in a lot of players. Build Amazing Games and they will live together inside the marketplace. Spending a lot more time connecting and inspiring each other through the games. Everything is going to be just fine. Kelly . I just want to go back to this point so that everybody understands whats happened with you guys and the ncaa. This 20 million settlement, is that money being transferred directly to. Student athletes . Again, were not a party to that particular settlement so i cant give you any more detail. If you use likenesses for sports video games in this country whether this changes you having to compensate them for that Going Forward . Again, at this point weve gone away from making collegethemed sports properties. Were focused on our core nfl madden product and looking forward to drive innovation and creativity around that product so our focus has moved away and we havent spent a lot of time on that recently. I know the settlement was last year before you became ceo. Since you became ceo what has your vision been for the company, both in terms of those types of sports games and others . At the very core of everything we do we put our player first and when you think about the player, were trying to build Amazing Games. End of the day everything that we do has to be built on Amazing Games. Everything that we do has to be driven by creativity and innovation and doing new things, fundamentally surprising and delighting our players, and then lastly really engaging. This is a different world right now, even as little as three or four years ago we launched a game that would play for five or six weeks and they were down. Now they Start Playing and play for six months, 12 months, 18 months and things like battlefield premiums and ongoing extension packs and madden ultimate teams, the live service that continues to engage and delight our players. With the world cup looming how important is that for your business and how important do you think this time around . It always gives our core football business or stocks in this country a real boost. It brings it around a real unified passion of global football. Its driving us forward. Now there have been a number of changes in the video game landscape. With the rise of mobile gaming and competitors of what ea does and potential for new digital revenue. How are you trying to take advantage of the now ways people play. Think about it on the business side, you can get really distracted by the various ways that you can generate return or revenue and engagement is a new metric. We believe we can create great games fueled by innovation and we can deliver you new content that expand and extends your experience that ultimately youll spend more time with us and potentially spend more time with us. So keep people playing beyond the original purchase of the 10 game. Keep playing and the rest will take care of itself. Really enjoy it. Thank you so much. Kelly. Our thanks as well. Despite the fight over sausage and kielbasa, the battle over hillshire brands but it doesnt come cheap. Up next the ceo of tyson explains why he paid up. At schwab, we can help0030 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. 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Someone whose poor performance is slowing down the entire organization. Im looking at you phone company dsl. Check your speed. See how fast your internet can be. Switch now and add voice and tv for 34. 90. Comcast business built for business. Welcome back. Were not done with her yet, breaking news on facebook and Julia Boorstin joins us. Whats going on, julia . Paypal president is joining facebooks messenger. He will be running the Facebook Messenger app. Obviously they have been trying to offer this as a separate app as part of Mark Zuckerbergs strategy of having a portfolio of apps. Marcus was very senior over at paypal, a big move and big change for both facebook and paypal. Back over to you. Take a look at tyson foods. The company down 6 after winning the bidding war for hillshire brand. The deal also hinges on hillshires plan to be released. Talk about why even with this big a price tag you think this deal is worthwhile for tyson. Good to see you again, too. Thanks for having me on your show. When we look at the strategic opportunity around hillshire brands it makes a ton of sense to combine these two companies together. They have a great strong branded presence at retail. Bringing the two together creates a real opportunity to create endtoend value. When we looked at the Value Proposition it was really about can we put those types of companies together . We think theres a huge opportunity there and then create real longterm share herald value by leveraging our Balance Sheet and finding a great opportunity in hillshire brand. Some analysts following this though say theres no way you can make this work in terms of the numbers without lots of synergies as youve put it over the next several years. How many jobs will have to be cut . We dont see it as a matter of that at all. When you look at xwunk the two supply Chain Networks together theres a huge opportunity inside the distribution network. Theres a lot of opportunities in purchasing, a lot of opportunities in operational efficiencies so this is not about cutting heads, about qiang two businesses and creating those opportunities through the way the business praits. Why is it that at a time when a lotoffolks, us included, is still debating the fundamental health of the u. S. Consumer you think its so valuable to own a brand like jimmy dean sausages . Hey, these brands are iconic and very popular with consumers and have been for years and years. When you look at the categories that are growing, busy moms are trying to find a way in their harried lifestyles to provide a good protein rich breakfast example for their kids so jimmy dean provides that opportunity to do just than and we see a lot more opportunities to extend these brands. The journal has a writeup in the move weve seen in these prices. Cattle prices may last for a couple of years. If thats the case, is that good for your business in is that a challenge when it comes to passing them along to consumers and fundamentally does this mean higher prices for some of these products . Our portfolio is really about having all three proteins because, for example, in the current environment, these prices are very high and we start to see volumes slip at retail because the price is just out of reach for many consumers, but what do they reach for . Well, they reach for pork and they particularly reach for chicken these days. Were also seeing a bit of a rebound based really on some Economic Development in the Food Service Business and we think that, too, is a great chicken story because its a great affordable protein. What do you mean by that, and is that why if you look at a chain like Buffalo Wild Wings their shares are performing quite well lately . Well, you know, what i mean by this is if you looked at chicken as a relative price, its a great value to very high beef and pork prices so in some consumers if they want beef they will reach for a beef item and some are looking for be a affordable proteinch when they make a choice they will look for a protein that provides a morrelltive value and that means chicken. People who look at the price of this deal. Hillshire was trading at 37 a share before all of this erupted. Youre buying them for 63, and thats a multiple roughly on their earnings depending on how you look at it at about 17 and a market where were so focused on high valuations of parts of the text sector, for example, this deal for this Consumer Products company by almost anyones stretch looks expensive. I mean, there are people involved, bankers involved in this space who said their jaws dropped when they saw the price that youre paying for this company. So it really boils down to our ability to accelerate the synergy capture and we feel very good about the ability to do that and the great longterm value that these two Companies Bring together and the compliment renature of that combination and how much value can be created over time so we see, for example, in the end of our first full year that this will be marginally accretive, but this transaction becomes substantially accretive over the next two to three years. Lastly, donnie, how much of a global play is this. Is this just about the u. S. Consumer or ultimately about the opportunities in china and beyond . Well, so the current hillshire Product Portfolio, and by the way our prepared foods Product Portfolio doesnt expand its reach beyond the u. S. We do see an opportunity overtime to create an international reach, but for the first three or four years well be concentrating on developing all the opportunities we have in this combination here domestically. Could this have happened if Morgan Stanley didnt off the financing in this environment . Well, its really important to us, number one, to take advantage of this credit environment. As lange as we can overcome our cost to capital and build longterm shareholder value. Thats important to us, but the most important thing was the ability to maintain our Investment Grade rating and weve got the opportunity to issue some equity in this deal to make sure we maintain that very important investment great rating so we can get the full value of this transaction. A day when tyson is concerned about the price youre paying but youre saying stick with us for the long term with hillshire brand. Thanks so much for being with us here this afternoon. Thanks, kelly. Good to visit with you again. Have a good one. Theres a little rust on the golden arches. Mcdonalds release sales figures today that saw a drop here in the u. S. Its a story thats been cooking on cnbc. Com. Well see if it makes the top three stories in the hot list next. Also gm, they have completed its investigation, but families. Victims of the automakers faulty ignition switch linked to 13 deaths are prepared to protest outside gms headquarters and our phil lebeau is speaking with them live just ahead. [ indistinct shouting ] [ male announcer ] time and sales data. Splitsecond stats. [ indistinct shouting ] its so close to the options floor. [ indistinct shouting, bell dinging ]. Youll bust your brain box. All on thinkorswim from td ameritrade. All on thinkorswim geicmoney for over 75 years. Save theyve really stood the test of time. Much like these majestic rocky mountains. Which must be named after the. That would be rocky the flying squirrel, mr. Gecko sir. Obviously ahh come on bullwinkle, theyre named after. First president george rockington that doesnt even make any sense. Mr. Uhh. Winkle. Geico. Fifteen minutes could save you fifteen percent or more on car insurance. Welcome back. We have a market flash here. Lets head out to cnbc headquarters. Check out ebay. Shares are getting a bit of pressure here on news that the ceo of paypal, a subsidiary, the payment subsidiary of ebay, is bolting for facebook where hes going to be a Vice President heading up the messaging unit as facebook tries to integrate that whats up acquisition. Ebay getting a bit of pressure as folks wonder about perhaps the leadership and succession in that paypal unit. Back to you. Oh, sure. A highprofile departure. Bertha, thank you. Now a tragic story claiming the most interest on cnbc. Com today. For that and the whole hot list lets check in with the sites managing editor. Allen . Hi, kelly, unfortunately a very sad story is leading our site. Over the weekend we had the terrible crash involving tracy morgan and the death of another comedian. Then we had news that the truck driver involved in that accident allegedly hadnt slept for over 24 hours. They started poking around the rules of service and Truck Drivers and slope and turned out last week a senate panel actually voted to roll back the sleeping restriction rules on Truck Drivers, make them looser, so john goes deep into the different arguments for and against that. Wow. Kind of the timing is really weird on that. Second most popular story, wonderful analysis by meg turrell looking at a new obesity drug that might get the goahead to come on the market wednesday. Is this the diet pill . Kind aphrodite pill. Two others in front of it right now that have sort of had a rocky track record, at least saleswise. Meg gets into the reason why this drug may do a little bit better, fascinating piece, and then finally robert frank tagged in for us one more time. Theres 2. 6 million more millionaire households in the world, and he runs it all down for us so thats our hot list. Alan, great, good to see you. I wonder if the diet pills are working because everyone is on to the lean proteins. I wish, but i think if people realize it takes more than a pill now to do it. Youve got to change your lifestyle. Got to eat less of some things and more others, but were discussing during the break that sadly there are no studies yet that say sugar is good for you, and apparently if you cut out sugar you can eat the carbs and Everything Else and youll do just fine. Sugar is the villain and not salt. My mom has coffee every morning with cream and sugar and, you know, nong knock on wood shes doing just fine, so, you know, in moderation. I think that they will find unhaniness is worse than a little bit of being overweight. Maybe its a happy bill that makes you in the fat and happy at the same time. Just what americans five steps to success. Take this pill and everything will be fine. We need to tell people all you need to do is eat well and exercise. You guys are right that people know better these days and thats probably why these quote, unquote diet pills dont work. They know better. They still want to find that magic bullet, that magic pill. They dont buy the pills, they buy diet books. Or go to the gym. Well have only three panelists when we come back. In advance of tomorrows General Motors meeting families with family members who died due to the faulty ignition switches will protest the matter. What else do they want from the company . Phil lebeau has that story next. Peace of mind is important when youre running a successful business. So we provide it services you can rely on. With centurylink as your trusted it partner, youll experience reliable uptime for the network and services you depend on. Multilayered Security Solutions keep your information safe, and secure. And responsive dedicated support meets your needs, and eases your mind. Centurylink. Your link to whats next. Thats keeping you from the healthcare you deserve. At humana, we believe if healthcare changes, 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. Welcome back. News from godaddy. Com. Bertha coombs joins us with the details. Go daddy, the hosting and Domain Services Company Filing to go public. They are just filing their s1. They have 12 million customers, they say. They dont talk about a ticker or where they would like to list, but among the underwriters are Morgan Stanley, jpmorgan and citi. A lot of people may know them for their very racy ads often during the super bowl, kelly. I think they are fairly memorable, though they havent done it of late. Very interesting move there. Yeah. And if it were any other company i would say theres no way they would go for gosh d. A. Od but you never know. Families of the gm faulty ignition switch recall is meeti. Phil is at the scene outside of gm headquarters in detroit. What are they asking the company to do beyond the investigation and Compensation Fund pending . Kelly, theyre trying to keep pressure on General Motors. Im joined now by ken rhymer whose daughter was one of the victims. Kelly just asked me and its a question you and i talked about. What is it you would like General Motors to say tomorrow regarding whats happened with this ignition switch recall . We just want to make sure theyre totally aware of everything that was swept under the rug and neglected through the course of time. They knew what the problem was. We want to make sure things get changed and adjusted. The shareholders need to know how gm was being run. And it wasnt run for the safety of the American Public. You watched the report last week and press conference of mary barra. What did you think when she was saying there was widespread negligence and incompetence . Did it change your opinion of her or General Motors . I had a chance to meet her personally out in washington. It appears that shes trying to make things happen which is good. Its good for all. Whether its making sure that the cars are safer on the road. We have got to make sure things like this dont happen to someone else. Has your attorney talked with ken fineburg yet regarding the Compensation Fund . Our attorney talked to him back in washington probably first part of may. He was not impressed with what they were attempting to do with the fund. I have not heard any changes as of yet. Obviously its something if our attorney, if they come to him, something worthwhile discussing. But right now were not really onboard with it. Ken, who is the stepfather of natasha one of the list of 13 victims who were killed in accidents involving recalled gm vehicles. Kelly, back to you. Phil, how big is the crowd there . How many families are with you . You know what, ken, if we could step to the side. Lets pull a bit back here. Let me give you some perspective here. There are two parents here of victims of the accident. What this is turned into is also people who are using this opportunity to protest General Motors on a number of other issues. There are a dozen people. But lets be clear. There are only two parents of victims of recalled gm vehicles. Ken and laura. But the rest, these are people who decided were going to take an opportunity to protest ahead of the meeting. So much news on General Motors. I want to get some thoughts from the panel. Today we found out they are consolidating many of these individual lawsuits into new york where the judge interestingly enough is the brother of president obamas chief economic advisor. What is the significance in your view of these cases now being heard in new york where General Motors had previously filed for bankruptcy and the issues that remain out there with regard to how big the Compensation Fund has to be and what would be demanded of this company . In terms of compensation, its going to be huge no matter where they have the settlement. Whats intreeging is that during this period of time gm had numerous other recalls. What in this specific area that h allowed this to be swept under the rug. In terms of a settlement i think its going to be huge no matter where they do it. New york, texas, wherever. How big is huge . Over a billion. And there will be other families involved. May not have been killed but injuries and things like that. The company is still trying to figure out just exactly how big this is going to be. Real quick, do you think these reflected in the current share price of General Motors . The idea theres going to be a judgment levied against this company, i would have to imagine at least handicapped for in the stock price. Its not to say theres a certainty but you will have traders signing up a probability to this and that is probably reflected in the stock price. Whether or not its true or not depends on whether steve is right. Coming up, the panel will weigh in on what will move the markets this week and tune in tomorrow and coauthor of think like a freak. Well talk to what he really thinks of the u. S. Economy. Dont miss that one. Back here in two. Shes still the one for you. And cialis for daily use helps you be Ready Anytime the moment is right. Cialis is also the only daily ed tablet approved to treat symptoms of bph, like needing to go frequently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid long term injury, get medical help right away for an erection lasting more than four hours. 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What happened to college being the best four years, i mean five years, oh wait, six years of your life. Love the idea of shorter degrees but in reality they keep getting longer and longer. Elliott tweets i got my bachelors in four years, masters in two. I have been done for 20 years. Theres always ways for people to accelerate this if needed to. Do you think this is where its heading . The real obstacle is going to be at state universities. You have unionized faculties. I think private colleges are the way in this. In terms of getting three years, youre going to find a lot of people doing it at nighttime. To the technology, a great equalizer and a lot of people can go online and take courses. What goes away, freshman, sophomore, junior senior . Which one do you do away with . Sophomore. Before we let you go, asking about the future of forbes. The spinoff of times. What is the future of forbes as a company . As a company, were in the mist of recapitalization. I think what we have done on the web, remember were in the information business and the manager was terrific when he said remember the purpose of your business and you dont get caught up in how you achieve it and the tools with which to achieve it. All right. Thank you so much for being here on the panel, sir. Thank you. Thanks to everybody. Fast money starts right now. Melissa, whats coming up. There is one chart in todays session thats Dennis Garman of the garman letters. Fast money starting right now. Live from the Nasdaq Market site. Im melissa lee. Our traders are tim, pete, and guy. Targeting netflix. Someone not giving up. New York City Comptroller first on court reporte. Is this a big start for a rally for apple. Traditionally after stocks go up a year out and then also for