nasdaq, up 30 points today, almost 1% there as well. and the s&p 500 tonight, up 10.5 points, two-thirds of 1% on the upside. the summer kicking off with a sizzling side on wall street. josh lipton is in the middle of it, talking about where stocks are up all day. >> another day, another record for the dow. as you pointed out, we did close off session highs. have been up about 218. we still, though, rack up a triple-digit gain, up about 107 points at the close. positive economic data on home prices, on consumer confidence. you hit a post-recession high. and some traders down here telling me this morning, why fight the tuesday. as you and bill were pointing out now, 20, 20 consecutive tuesdays of gains. in the s&p 500, what worked today, those cyclical sectors, those economically sensitive sectors. that has been the thing, it's financials, it's energy, and it's materials. what did not work today were those defensive sectors, telecom and utilities. in fact, dow utilities closed at a two-month low, down for four straight sessions. and we'll end here, maria, on one bright spot. that was the luxury sector. tiffany reported this morning, higher than expected sales. coors, which reports tomorrow morning, as well as coach, both finish higher. maria, back to you. >> josh, thank you so much. joining me now is tim leech from u.s. wealth management, mike santoli and andrew keene from keene on the markets. good to see everybody. tim leetch, let me ask you your take on what we saw last week and compare that to what we're seeing today. has anything changed in your mind in terms of the reason to own equities? >> this is really playing out the way that we thought it would, maria, with the fed beginning to signal the taper. that's what we saw as a first reaction last week, was facing that reality by equity investors. whereas this week, today, i think this is really that cheering sound of equity investors who are believing now that there may be life after qe. so i think it's all kind of playing out as we had anticipated. >> so, mark, you say the rotation to cyclicals out of defensive, the defensive area, has become expensive. is that -- would you agree it's life after qe that you want to own those companies that are economically sensitive? >> yeah, we're all waiting for a correction that i think we probably all feel is overdue for the overall market. i think you're getting that rotation within the market. this was a reluctant investor coming into this year. utilities, staples, and health care. but now, particularly when you've got technology companies paying a dividend that is just as much as you're getting in some of those safer plays, i think people are saying, where do i see future growth. if i get the same dividend, maybe it's time to rotate. as the economic data today certainly looked better, i think some of those more expensive defensives are rotating to cyclicals, it's almost as if we're getting a market correction, without having a full market correction. i think this is stage one, while we all wait for some sort of pullback. you're going to see it in the defensive areas right now. >> and any catalyst on the horizon, mike santoli, in terms of pushing us one way or the other, that you see, besides the federal reserve being the main components here? mike santoli, you with us? all right, mike does not hear me. but, andrew keene, let me turn to you, then. you're talking about, i see that in your notes, you say that the vix is very important and you're not expecting a big correction until we see some kind of pop in the volatility index. how come? >> yeah, everything, you know, when i watch a stock market trade, we sold off last week on bernanke's comments, and maybe tapering off some of this qe. and i look at the volatility index and the vix. and the june vix features didn't really budge at all. that showed to me that there were going to be buyers coming in the market. the futures got bid up. they got down to about this 1634 level and they came in and bought them. the market continues to move higher. i talked about it the last time i was on the show. i was buying put spreads on the tlt, gld, and i've been long the market. i think the airlines still look good, lcc, ula, i think this market will continue to move higher. always keep an eye on the vix and volatility index, to give me a signal that the market can actually have a correction, which i don't think it's going to have until i see a vix, at least putting on 18. >> what about that, mike santoli, can you hear me now? >> i can, yeah. >> so andrew's talking about the vix popping, as being a catalyst. do you see any catalyst on the horizon to move this market one way or the other? >> to be honest, the only downside catalyst i see is not actually the fed, because i think it's going to be a very managed, telegraphed process. when we get there, we'll be lucky once the taper really kicks in. it will be a microstutter step. last week, that volatility was a little bit about the chinese shortfall and chinese manufacturing growth versus the actual market dynamics over here. i do think that is the risk. and so far this handoff to the cyclical seems like -- >> it seems like we're having technical difficulties with mike santoli. tim leech, if i wanted to get into this market today, obviously, i would miss a lot of the move on the upside. putting new money to work today, would you do that? >> we would do that, maria, but we'll do it in a little bit different way than some other investors do. given how far and how fast this market has come this year, we're actually wanting to play it a little bit more cautiously. we think it's going to be a little bit more choppy over the next three months. and so we actually have a blended position between investment managers who are more long/short versus long only. we think that long/short managers are likely to fare better over the next three months. >> long only being which groups? >> long only being managers who are essentially buying stocks solely as their investment strategy, whereas long/short managers are buying to hold as well as shorting other names that they don't like. >> i see. in terms of the rotation to cyclicals, where do you -- do you, mark ooibl look at financials in that category? give me your sense of the actual sectors that you think are going to lead this rally? >> our managers have been overweight health care, they continue to be. that's one of the foot in the camp of both offensive as well as growth. consumer discretionary, tech, and financials, the weights have been coming up. so i think that's how you play it within the u.s. i think there's another -- people need to step back and not just think of this equity rally within the u.s. europe, certainly, sent smalls overnight, that they're looking a little bit more at the growth initiatives. and emerging markets have not participated. so i think you'll like equities over other asset classes, but you need to diversify those, i think, across the world and not just look at it within the u.s. base, i think, at this point. >> what's vulnerable here, guys? what do you want to avoid? >> i think all the currencies are shorts right now. if you look at the yen, the british pound, the euro, a rally on any of those got short the yen, had been short the yen in the past. i think all the currencies globally will head lower. i want to be long u.s. equities against short global currencies. >> what about you, tim, were you just about to jump in there? >> probably the biggest risk we so, maria, is backing up rates. and we've already seen the first moves of that with the ten-year going to 2.13 today. we're going to see more of that. we think that the ten-year probably ends up the year at 2.25, maybe 2.3. and there's going to be some real pain out of traditional fixed income owning investors. >> all right. we'll leave it there. thanks, everybody. really appreciate your time tonight. we'll see you soon. >> thank you. >> thank you so much. meanwhile, another train derailment in the northeast. this time, it is the freight train outside of baltimore. jackie deangelis now with the latest on that. over to you, jackie. >> good afternoon, maria. i want to share with you some very dramatic video that was posted on facebook from a viewer of this freight train derailment and that subsequent explosion that occurred near white marsh, maryland. take a look. >> how far -- how far away, do you think, we are -- that video really giving you a sense of the size and also the scale of this explosion. reports indicate that the explosion could be heard in downtown maryland. that's roughly 20 minutes away. it's obviously a developing story, maria, which we are following. several buildings collapsed at the site of that derailment. reports also that nearby businesses have evacuated that area and that hazmat is on the scene, working with authorities to investigate not only the cause of this, but what specifically was on that train. as you're watching pictures of this, you see thick plumes of smoke and also fire burning at this time. no injuries, though, reported just as yet. now, it is believed that this was a csx freight train. we are waiting to hear back from the company with a statement from them, but nothing yet. we do have a statement from the ntsb saying that it is, quote, gathering information regarding this incident right now. meantime, a little more on csx. it's a company that provides rail-based transportation services. the stock was higher for most of the day. now negative. and we saw a big pickup in volume in this stock as well after 2:30. half of its volume coming in the last hour and a half of trade. and this, of course, bringing train mishaps into focus. it's the third big one that we've seen in the last two weeks. the first, may 17th, that derailment in connecticut that injured more than 70 people. and of course, the incident that we saw this weekend in missouri on saturday. as more information becomes available on this, we will bring it to you. back to you. >> jackie, thank you so much, jackie deangelis. a lot more coming up on this market rally today on wall street. the rally keeps on going, but so do calls for a summer swoon. somebody insisting a big decline is right around the corner. we'll find out why he thinks so. and which of these stocks are still a bargain in your view? we're focused on different companies every day this week. you cannot afford to miss where the value is in this market. which five brands everybody knows won't be around by the end of the year? the editor of "24/7 wall street" has a list you need to keep an eye on. you're watching the "closing bell" on cnbc, first in business worldwide. ♪ bonjour ♪ je t'adore ♪ c'est aujourd'hui ♪ ♪ et toujours ♪ me amour ♪ how about me? [ male announcer ] here's to a life less routine. ♪ and it's un, deux, trois, quatre ♪ ♪ give me some more of that [ male announcer ] the more connected, athletic, seductive lexus rx. ♪ je t'adore, je t'adore, je t'adore ♪ ♪ ♪ s'il vous plait [ male announcer ] this is the pursuit of perfection. welcome back. dow notching a record 20th straight tuesday in the black on the way to another closing high today. seema mody, what is going on with tuesdays?! >> it is pretty amazing, maria. the record winning streak for the dow just continues to go higher. today marks the 20th tuesday in a row that the dow jones industrial index closed higher. tuesday rallies a count for about 68% of the gains for the dow this year. what if you just traded a tuesday run? well, if you bought the dow jones industrial at the close on the prior trading day and sold at the close of tuesday, you would have a cumulative return of about 12%. the last time we had a run of tuesday wins, even close to this run, was in 1927. that streak ended at 15. and it's not just a dow. today marks the tenth consecutive tuesday gain for the s&p 500 and the nasdaq. the nasdaq run ties a ten-session run back in 1972, almost 40 years ago. so what's so special about them tuesdays? well, you ask ten traders and you may get a dozen reasons. upbeat economic data around housing and consumer confidence have helped some days, but not all. other traders also suggested maybe the optimism behind the market expression "turnaround tuesdays." and then there are other traders who say, this is simply a spoof. no real reason. nonetheless, maria, an interesting run. back to you. >> seema, thank you so much. well, the start of the summer, temperatures are not breaking records or hitting new highs. the markets certainly are. but as the inevitable summer swelter arrives, will it provide a market meltdown? michael guyed says there's a real risk of market correction, but john could not disagree more. gentleman, good to see you. thank you so much for joining us and make the bull and the bear cases. michael, why would a correction be around the corner? >> i think the most important thing is here to watch how the bond market behaves. we saw last week how stocks react when you have interest rates spike. the biggest black swan is no longer anything except what could happen in the bond market. now, in the event that this yield curve steepening really starts to go vertical, i think you're going end to up having people doubt the housing recovery, doubt the cyclical story, and you'll have a lot of people doubt the central banks' ability to control this frankenstein they've created in the bond market. >> yeah, but even with rates where they are, even moving up from the absolute bottom, the stock market keeps on trading up. >> it did that prior to the crash of '87 and did that also in the mid-'70s. if you really want to understand what's going to happen to the trend here, you have to notice the speed under which interest rates move. >> john, what about you. you don't see a chance of a correction all this summer, but at some point, does something have to give? >> well, we've been bullish for some time now, three or four years, so we're continuing to be bullish. i understand what gary is saying, but the fact of the matter is, right now, what we're having is kind of like an all-state moment in the bond market, where we're recalculating. basically, they're recalculating for the taper. the fed is not buying $85 billion a month worth of stocks, they're buying treasury securities. so the bond market needs to recalibrate for that liquidity to come out. basically, in terms of what we had forecasted in the prior months back is the yield is probably being compressed by 90 to 120 basis points, because of qe, right? so basically, we've had rates back up about 50 or 60 basis points. so, basically, we've discounting the tapering, probably about 60% right now. i would say over 50%. as the fed starts to taper, the bond market reaction is going to be 50% less if the ted didn't say anything about tapering. so right now we're seeing a recalibration in the bond market given the fact that qe and the tapering is going is come out. and conversely, at the same time, the stocks have not really sold off. so -- >> what's the number that you would look for in the bond market that actually would be nerve-racking or a reason, a good enough reason to take money out of stocks and put it into fixed income? >> well, i think as long as we don't see a dislocation in the bond market, like i said, you know, we calibrated about 100 basis points of yield compression because of qe. so if we take out a hundred basis points, that means it goes from 160 to 260. we don't think that's probably outside the realm of the possibilities going forward. the other thing we have to remember is that the united states economy is a super tanker. we just saw moody's upgrade the banking sector for the first time since 2008. consumer confidence is the highest since 2008. so, obviously, this handoff between the fed to the real economy is working. and yields will obviously backup because the economy is getting stronger. >> what about that, michael? >> i hear a lot of 2008 in that rhetoric, which concerns me a little bit. but, you know, i think we have to be really, really cautious here. you have this real disconnect here between the stock market and the bond market all year. the stock market has moved higher. bond yields have now been very, very jumpy. i think in general, if qe, this whole issue of tapering, has to be considered in the light of inflation expectations. how can the fed really taper if inflation expectations are falling, and they have been, really since the end of january. there is still this reflation disconnect between the story of the stock market and the bond market? >> i think the other problem is that the fed is talking about tapering, because as the deficit falls, they cannot be the only buyer of treasuries. they can't continue to buy $85 billion worth of bonds each month if there's not that amount of bonds to be bought. as the deficit falls, the fed has to taper, right? and the average duration of the fed portfolio is about 7 1/2 to 8 years. so therefore, they could actually let those bonds run off without buying new bonds, as the taper proceeds. >> i do not disagree with any of that, but this is ultimately about speed. you can have a shock in the bond market that can cause stocks to fall pretty substantially. every day that goes by, we get closer to that risk of a butterfly effect happening in fixed income. so we're in equities very near-term, we can very quickly rotate into bonds in our mutual fund. but i have to stress, if you're only looking at the stock market's trend, you are vulnerable very much to this possibility of something happening overnight or something like that -- >> we can always worry about what-ifs, but my guys want to know, what is going on? they don't know what if is going to happen. >> yields are rising -- >> and utilities are falling. as yields rise, utilities fall. so what's going on is actually the same thing that goes on all the time. i would also say that, probably, some of those dividends stocks that have been bought, because people want a yield of 3, 4%, they might also come under some pressure. >> there has to be some kind of a strategy for when the federal reserve does start to taper off and start sending rates higher. i mean, we don't know if it's sooner rather than later, that's one of the issues here, because, john, if it happens in june, in july of this year, then we get clear evidence that, in fact, the federal reserve is beginning to taper, is there an argument to be made that you have to start taking chips off the table in stocks? >> i don't think so, maria. >> even while the fed is cutting -- >> it depends on how it happens. >> we've already seen 50 to 60% of the bond market begin to discount the fact that the fed will begin to taper. and stocks haven't done anything, except stay -- stocks could go sideways, and then, eventually, go higher. nobody cease saying that we're going to go up 1% every week, until the end of the year. but, you know, everybody who's calling for a 10% correction and waiting by this correction, i don't see it. there's so much money underneath the market, goldman sachs order book, just on corporations, just on merck alone, they have to buy 100 million shares of merck just to satisfy their buyback. do you want to fight merck, do you want to fight all the central banks in the world, as well as the fact that we have two elections coming up, one in japan, right, where they're going to vote in june, and then in the fall, we have merkel up for re-election. do you think any of those governments will do anything to upset the masses? >> final word here, michael, go ahead. >> you're assuming that central banks have power over their respective bond markets. i think the experiment going on in japan is going to very much question that notion, given what happened last week. that may be the first sneak peek into how bond markets can suddenly counter everything that central banks have been doing. so i'm in agreement with you on a lot of things. i'm simply suggesting if you know the speeds of which they're going to right -- >> you can be short treasury futures and long stocks. >> gentleman, thank you very much. up next, will consumers keep the economy on the road to recovery? if retail is the economic trend to follow, who better to ask than tanger outlet ceo steven tanger. talk about the state of the economy and consumer with him next. also ahead, we'll scour wall street for bargain stocksjo int your portfolio. we're on the hunt for value. stay with us # wa to treat more . ♪ our business needs more cases. 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[ female announcer ] today, cisco is connecting the internet of everything. so everyone goes home happy. welcome back. we have breaking news on that train derailment near baltimore. jackie deangelis now with the story. jackie? >> good afternoon, maria. the latest tweet from the baltimore pd, that a 20-block area around the incident has been evacuated. and also, that the ntsb is launching a go-team in baltimore, in just a few minutes. that's going to include rail and hazmat investigators to look into this incident. the latest live pictures that we do have continue to show plumes of smoke in that area and also the fires that we saw, that occurred after the derailment and the subsequent explosion that was near white marsh, maryland, which is also near baltimore. but, again, that baltimore pd tweet saying that the 20-block area around this space has been evacuated. maria? >> thank you so much, jackie deangelis. meanwhile, consumer confidence soaring to a five-year high, fueling the increase that consumers are feeling more positive about the jobs market, housing, and more upbeat about the future of economic growth. is this confidence translating over to spending habits? tanger factory outlets has over 180 million customers visiting shopping centers each day. joining me now in a cnbc exclusive is steven tanger, just ran the closing bell, here to celebrate 20 years as a public company. congratulations. >> it's been a great 20 years. we went public with an enterprise value of $200 million, and as of today, we're $5 billion. >> wow, isn't that nice to be able to look back and see that? and over that time, you've seen a lot of changes to the economy. we know that. today we've got the consumer confidence numbers out. and obviously, set a five-year high. does that reflect what you're actually seeing in terms of spending? >> it does. i think there's a wealth effect with the stock market up, consumer confidence up, housing prices up. if people have a job, they feel good about it, good about the economy recovering slowly, and they're more apt to spend some of their disposable income. >> and yours is a business of outlets, so right by its design, you know people want to bargain. they want value. >> in good times, people like a bargain, and in tough times like these, they need a bargain. you save 30% to 50% every day on the best nabrands and designer names. >> when you see the customer spending money today, are they a lot more selective. what kind of trends can you share with us from the typical consumer? >> outlets are aspirational shopping. people can buy the finest brands like, pick a name, calvin klein, tommy hilfiger, coach at outlet prices, and they can reach a little bit to get superior quality on brand-name products. >> oh, i know the beauty of outlets. they're great, i agree with you. but are you seeing the spending? whatwe we're trying to figure o is how the economy is doing. >> the economy as far as in the outlets and tanger outlets, our sales were up in the first quarter. our sales over the weekend appear to be up anecdotally from conversations with our mall managers, our traffic was up. so, yes, people spend selectively. they want top-quality brand-name products if they're going to buy. >> what do you think would be a game changer in terms of moving the needle. getting us back to the growth levels of the prior decade? >> it's going to take some time. the economy had a heart attack. it's slowly recovering, steadily recovering. and if we can stay the course for the next year or two, i think the free market system will get the economy going again, if there's no major interference. >> let me ask about the side of business in terms of expenses, health care keeps coming up in our conversations with ceos in terms of large or small, actually, for the retailers you work with, how much of a concern is health care and the cost of it? >> it's a concern for everybody that pays their fair share. but the law of the land is the current program. we have been monitoring it in our company, real-time, since 2010 when it was first introduced. we have updated our health care program. as a matter of fact, we work with our insurance company to implement a wellness program, where we work with our employees on nutrition and annual physicals, and we ape -- we earn points which reduce the health care expense of our employees. by the way, we have no cadillac program in tanger. i have the same insurance program as every single one of our employees. >> and that's by design? >> absolutely. >> so you don't want to do the catalog program? >> i have no interest in doing it. i want to be treated just like every other employee. >> in terms of what they're buying today, where are you seeing the most money spent? are these sort of necessities or are they, you know, overreaching a bit? >> i think they're overreaching, again, on brand names. our business is not just the replacement business, our business is brand names, luxury, stretching for the better pair -- the better dress or the better pair of athletic shoes, the better brands. jewelry, home furnishings. people are stretching a bit in this economy because they feel more secure. >> and in terms of foot traffic this weekend, were you happy with it? what did you see this weekend, the opening of the summertime, really? >> overnight returns from our 46 shopping centers around the country and in canada were good. traffic was up, low, single digits. we hope that that translates into sales being up, and it usually does. >> this is really great news, this is exactly, certainly, what you want to hear in an economy that is recovering. steven, thank you so much for sharing it with us. >> maria, it's always a pleasure. >> steven tanger joining us, the outlet celebrating the 20th anniversary of the ipo trading at the new york stock exchange. everybody loves a bargain and we have a few ideas for you in that regard as well. up next, we kick off our week-long series on overlooked bargain stocks you may want to add to your portfolio. the names are coming up. and bird flu fears hitting wall street? one firm changing where a big conference will take place as a result of those concerns. the story is next. 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[ static warbles ] a lot can happen in a second. with fidelity's guaranteed one-second 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. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. welcome back. big market day again. the dow industrials closing at another all-time high. we now have 20 gains in 20 tuesdays in a row. something about tuesdays. seema mody runs through the day's big movers. >> valiant pharmaceuticals acquiring bausch and lomb. they're looking to lead the eyecare space because of an aging patient population. another acquisition to report. astra zenka to buy omthera pharmaceuticals. other winners include tesla. the ceo, elon musk, expected to speak at the all things "d" conference wednesday. the electric car posted its first quarterly performance. and tiffany reporting better than expected first quarter earnings on strong revenue. same-store sales rising 8%. the stock, shining in today's trade. netflix weighing on tech today. reviews for its revival of "arrested development" were mixed. analysts at albert fried also suggesting that bids for competitor hulu imply a lower valuation for the streaming media company. netflix, he says, is overvalued. that stock up over 130% year-to-date. finally, maria, utilities down for the fourth straight session. exelon, the biggest loser after a downgrade at deutsche bank to hold price targets set at $34 a share. maria, back to you. see >> seema, thank you very much. we're kicking off the week with a new bargain stock series. our guests this week are here to tell us which stocks they believe you should own in your portfolio today. with us now, mark travis of intrepid capital funds and darren schuringa of yorkville capital management. good to see you thank you so much for joining us. >> good to be here. >> let's talk about bargains. what are your top bargains? >> mlps are on fire this year. they're up 20%. our bargain pick today, linn energy, is flat for the year. so we think that trend will change for three reasons. number one, it's high-quality yield. linn is yield 8.2% currently, since it's gone public any 2006, the stock has maintained or increased its distribution each quarter. it's grown its distribution historically at a 7% annual rate, doubling your income every ten years. forward, we see 6% growth rates and we think we can go as high as 8% with acquisitions built in. >> so even though this stock, this move has been 20% double-digit move, you think it continues to go higher. >> the overall group is up 20%. so a real underperformer. mark, what about that? you like linn energy? >> well, i obviously don't know as much about it as darren does. my concerns are, it's lost money on an operating basis the last three or four years and it's issued a fair amount of shares the last trailing three years as well. so, i wonder if they're funding their dividend out of their stock sales. but i know mlps have certainly been a hot topic, not this year to date, but probably in the last three years. >> what about your pick, mark. you like ingraham micro. why is is it a bargain? >> well, maria, in a world with the stock market up close to 30% in a trailing year, it's hard to find, as we would call it in intrepid capital funds, a discounted dollar. but i think if would do a discounted cash flow on the free cash flow, ingram micro, we get a low to mid20 share price, capitalizing that cash flow at a pretty high number gets us there. so we're buying it below tangible book value and we're also buying it, you know, seven times operating income, which you're in a world where the stock markets are trading in the mid- to high-teens on an operating income basis. so, obviously, a disconnect. >> what do you think about ingram micro? >> they're sitting on a lot of cash, 20%. so being a u.s. energy investor, infrastructure, i say why not give some of the cash back. i always like to pocket a bit of my total return on an annual basis, because i like to make my capital allocation decisions versus management. that way i stay out of trouble and am never sure where management is going to go. >> isn't that a trend throughout corporate america, though, all this cash on balance sheets? >> the balance sheets are very strong right now, on a historical basis. >> which is a real positive. >> it's offshore, maria. all the cash is offshore. didn't you hear sander levin last week? >> some of it currently is, yeah. what's your thought about that? >> the thought that he'd use american tax law against our senators is just blasphemous. i can't imagine anybody doing that. >> we'll leave it there. this is a different conversation, but gentleman, thank you very much. appreciate your time today. we'll watch those picks, ingram microand lin energy. on the brink of extinction. up next, the editor of "24/7 wall street" gives us his list of brands that are struggling to survive by the end of the year. some of the names he think will be extinct may surprise you. stick around. and it may sound like it's ripped from the pages of a science fiction novel. i promise you, it is not. a deadly bird flu strain in china forcing a wall street firm to change its plans. and get this, the strain is resistant to a major flu shot. the story coming up. sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. it's easy to follow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪ chalky... not chalky. temporary... 24 hour. lots of tablets... one pill. you decide. prevent acid with prevacid 24hr. . welcome back. metro pcs, current tv, and su suzuki are all brands that are gone or about to go away. research in motion is now blackberry. a year ago, doug mcentire, co-editor of "24/7 wall street," currently predicted all of those brands could be extinct in some shape or form and now he's taking aim at other household names. he joins us now to reveal five of his annual picks, brands he predicts will disappear in 2014. sir, thanks for joining us. >> how are you? >> let's start with the first name on your list, that's jcpenney. this is a much talked about story of will they survive or won't they? you say this is a brand that disappears before 2014. how come? >> well, there's two arguments. the one is they've raised enough cash so that they make it for another year or two. our argument is that you can't survive with double-digit same-store sales dropping a second year and that the company will have to be sold, liquidated, or broken into pieces. it's not a viable retailer anymore. >> okay. so, it's not a viable -- do you think it gets acquired? how does this play out? >> i suspect that the best chance of what happens to jcpenney now is it's bought by an overseas retailer or a private equity firm. there aren't companies like sears or macy's or walmart that have any interest in this. >> all right, and for the next name on your list, volvo. this brand has been around for, what, three decades. why do you say it could disappear now? >> actually, it's been around longer than that. as you may now, it was bought by a chinese company two years ago. they keep saying they're going to introduce new models, that they've got new financing, and volvo sales not just here, but abroad, keep bumping down, even in its, what is now its own market of china. so it's the same problem. they've got about 0.2% of 1% of the u.s. auto market. they're not a broad, broad car company or a luxury car company anymore either. >> i see. the next name on your list is martha stewart living magazine. this surprises me. you say it lost the ability to be a stand-alone magazine along ago. >> martha stewart, the company, omnimedia has already started to get out of some of their print properties. as you know, everybody thinks. print will eventually go away. if that's true, the first things that will go away are those that are leading the way in terms of profit loss and revenue going down. martha stewart living has had a much, much worse time in terms of selling advertising pages than the typical magazine has in the last four years. and as you know, the company, itself, is in trouble. so they've got to do something and print is their big loss leader. >> really interesting. next, the life of the nook coming to an end. what's missing for this device. why do you predict the end for nook? >> as you know, the kindle has most of the market share there, and both the nook and the kindle are under pressure because of the number of inexpensive tablets on the market. so this is a hot sector that's now dying, as tablet pcs become more important. and you don't want to be the number two or number three guy in the market that's shrinking. >> it's true. i mean, i guess you could see that one coming more easily than some of the others. what about living social. is living social, is groupon taking too big of a bite out of the daily deal website? >> i think the problem both of them have is that american express, amazon, walmart, once they saw what a great business this was, you have this flood of larger companies that are competing with groupon and living social. so i don't know that the problem is that they're cannibalizing one another. again, this is a part of the market that both of them got into. it was a hot part of the market. and then much better financed companies with much bigger customer bases poured into it and now both of these companies are struggling mightily. >> all right. we will leave it there. this is really -- that's sticking your neck out, i'll tell you, to come up with these brands that won't be around next year. we appreciate your time and your candor. thank you so much, sir. >> thank you. we'll see you soon. up next, the market could hit new highs again tomorrow. wall street's top market prois o will give us a leg up. and fears of a new bird flu in china starting to take flight on wall street. we'll tell you why next. back in a moment. 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[ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. it's just common sense. lets you talk face-to-face and share whatever's on your screen. blackberry z10 with bbm video. built to keep you moving. see it in action at blackberry.com/z10 welcome back. morgan stanley moving a hedge fund meeting out of china as a result of a new drug-resistant bird flu strain. michelle caruso-cabrera with more on this developing story. >> the hedge fund event was supposed to be held last week in shanghai. we are just learning now, however, that about a month ago, they decided instead to move it to new york next month. that's according to someone familiar with the situation. and they were worried about bad turnout, in case people feared going to china due to an outbreak of bird flu. this new strain of bird flu was first seen in china in april of this year. the world health organization says since then, there have been 130 cases in mainland china, resulting in 36 deaths. although individuals may be particularly frightened right now, because of what happened in china back in 2003, with sars or severe acute respiratory syndrome. back syndrome. back then when sars broke out china was extremely secretive, didn't inform the public, didn't inform world authorities. experts in the field of epidemics say that attitude made the situation far worse than it should have been. there were more than 8,000 cases worldwide, nearly 800 people died according to the center for disease control, and it cost them in terms of economic costs $40 billion. there is some indication that this strain of bird flu that we're seeing may be resistant to treatments already out there. gilead and roach, the drug companies behind tamiflu, the one drug known to combat bird flu, glaxosmithkline has relenza. it's in the same class of drug as tamiflu but you take it via an inhaler. these, if we see a larger outbreak, maria, these are companies that could benefit if there's an increased need for their product. back to you. >> all right. we'll watch them. michelle, thanks very much. does the rally continue tomorrow? we've got 30 seconds on the clock now for our panel. our panel is here to tell us what toe prepare for for tomorrow's opening bell. joining me is eric marshall from hornlgz capital management, brian piskarowski from wells fargo advisers and steven rosehaus. good to see you. eric, you're up first. 30 seconds on the clock. >> we don't see a lot of economic news to move the market. at the hodges fund we're going to pay attention to some of the key leadership groups, mainly the cyclicals and some of the manufacturing stocks. we'll also take a look at the earnings out of several of the consumer names such as michael kors, chico's, and dsw. what they have to say about the second half of the year should be a good proxy for what's going on out there with the consumer. >> all right. we'll watch that. brian, over to you. 30 seconds on the clock. what are you preparing for for tomorrow? >> well, listen, we had a huge wind at our back today with the consumer confidence data, the number seen out of case shiller. we don't have a lot to go off of tomorrow but tapering has become the new piece of vernacular on wall street. so we'll be keeping an eye on the fact we've got a couple of fed heads including former chairman voelker speaking tomorrow. so keep an eye on that. and then also taking a look on the european markets we've got several pieces of economic data coming out there. so eyes will be focused on that front. and then lastly crude had a nice bounceback here today. tomorrow night we're beginning the api numbers which are expecting a 500,000 barrel build. that will be a focal point for us. >> focal point for us as well. steven, you're up. 30 seconds on the clock. what are you looking at for tomorrow? >> with little news on the economic front we're focusing on japan on the u.s. ten-year traeshszy. in japan we want to see if the nikkei can hold the 14,000 area and if not we think the sell-off continues for another 7% to 10%. also watching the u.s. ten-year treasury to see if the large rise in yields we've seeb over the past 30 days continues or if the recent sharp sell-off sparks some buying as many female the fed's policy of low yields is going to continue for some time. >> all right. we'll be watching all of that. let me ask you guys. the rally, last week we had a different sentiment than we're feeling today with this 100-plus-point move. do you guys believe that the move continues on the up side for stocks? >> well, maria, i think at hightown bethesda we're very constructive of the equity markets at this point in time. i think we'd like to see a pullback to see better valuations. but the economic news that we've seen coming through is pretty solid. >> yeah. i think -- i would agree with that. >> at the hodges funds we're focusing on what's going on with the individual companies, and we do see earnings improving across the board and the outlooks for a lot of companies improving. i think that's really what's been driving money back into stocks and away from, you know, the bond market, which is starting to look less and less attractive by the day. >> brian, what do you think? >> yeah. i think the key thing when you look at the 16% gain we've seen in s&p year to date, a large portion of that came in more of the defensive side of the market. so we've been focusing on the more cyclical areas of the market. maybe some of that sector rotation, some of that internal correcting factor may help the market kind of march on from here on clearly what are sizable gains year to date. but rotation may be the scene as we move through the next couple of months. >> in terms of the worries over the fed, you know, beginning to taper down, does anybody here think that it happens in 2013? >> no. i don't think we see it probably until sometime in 2014. >> so it's a 2014 affair. >> the economy is doing well but i think at the end of the day what we see is every single time we get rumors or speculation that the fed's going to taper all of a sudden we see these large market sell-offs. and i think the fed understands that we're still on some shaky ground and doesn't want to put us in any bad situations. >> no doubt about it. that seems to be the mentality over and over. gentlemen, thank you very much. thanks for the extra time there. appreciate that. will the rally continue? some are banking on it. that's next. stay with us. i'm a conservative investor. i invest in what i know. i turned 65 last week. i'm getting married. planning a life. there are risks, sure. but, there's no reward without it. i want to be prepared for the long haul. i see a world bursting with opportunities. india, china, brazil, ishares, small-caps, large-caps, ishares. industrials. low cost. every dollar counts. ishares. income. 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taking cialis and get medical help right away. ask your doctor about cialis for daily use and a 30-tablet free trial. and finally today, my observation on the banking sector and how it will evolve, which of course continues to be debated from main street to washington to wall street. today moody's catching up with many others who have seen a real positive change in the health of the system. since the crisis five years ago moody's today changing its outlook on the banks. it had been negative since the financial crisis. now it is telling clients it sees continued improvement in the operating environment and less down side risk. moody's says in addition to the broad economic themes such as stable albeit slow economic growth and declining unemployment, which is also slower than most would like, the real factor here is that the banking sector has completed the fourth year of cutting crisis-related credit costs and raising capital. moody's now formally acknowledging that the u.s. banks are more resilient to an economic downturn. this of course was verified with the results of the most recent stress test by the federal reserve earlier this year. so really this is just the ratings firm finally acknowledging these results. yet we continue to see a lively debate about splitting the banks up and the attacks on the banks. previous bad behavior continues in many corners. no doubt all this will continue. but few can argue about the improvement that the banks have seen. moody's does have some warnings, telling clients low interest rates, while a catalyst for so many of the sector's lending business, are also the one major issue which will heighten competition and potentially hurt profitability. bottom line, it is good to see moody's catching up with so many others who've noted a significant improvement for one of the most important sectors of the economy and the stock market as well. others catch on, this rally could have real legs. of course, we'll be watching the banks and how they lead the overall broader market. before we go take a look at the day on wall street it was another bullish day today. the dow jones industrial average finishing up in the triple dajts. up 106 points to 15,409. yes, that is uncharted territory. the dow tonight at an all-time new closing high. nasdaq picks up 30 points, almost 1%. and the s&p 500 tonight up 10 1/2 points, 2/3 of 1%, finishing the day at 1660. that'll do it for us on "closing bell." thank you so much for being with me. i hope follow me on twitter and on google plus but first stay with cnbc because "fast money" begins right now. have a good night, everybody. live from the nasdaq marketsite in new york city's times square, i'm melissa lee. our traders for tonight are brian kelly, dan nathan, geoff brown, guy adami, and mike kuo. let's get straight to the big story "fast" is following tonight. will rising yields kill this rally? the ten-year yield rising above 2.1% today's session. no coincidence the leaders of the market rally are also taking a hit at the sam time. take a look at these yield plays. utilities, for instance, having their worst day of the year. what is the bottom line here? are rising yields bad for stocks? brian kelly, what do you say? >> i say yes. >> yes? >> i've contended since the beginning of this that the people who are saying that don't fight the fed and don't want to buy bonds but are buying stocks better be pretty careful because when you look at what's actually happening in the market, one, last week the