Transcripts For CNBC Power Lunch 20150515

The session are end the trading week. We saw the stocks open higher but they are struggling at this hour. The averages are holding on to small gains for the week. The dow and the s p up three of the last four. Utilities are leading and financials and texts are lower. The old adage is sell in may and go. It doesnt appear to be working this time around. We are halfway through. Stocks hitting new highs. The dow and nasdaq up 2 and the s p up 1. 5 and closing at record highs. What could stop it . Dominic takes a closer look. All of the talk is about whats happening. We are a stones throw away from record highs. You look at the chart and see why the bulls and bears are having a healthy debate. The up trend we are seeing is running into a bit of resistance this year to date. We talked to the experts and the strategists on wall street and we wanted to see what they had to say about what could derail this rally. Weakness in profit could derail things. We managed to see a gain all be it small this time around. We will see if that continues, but it they fall that could be the weakness. Over at wells fargo, the economy. Watch out if its too strong or too weak. Too weak the obvious reasons. Too strong what happens with Interest Rates and what happens with the fed . That could be an issue. Brian over at bmo is a bull. He said we are in year six of a 20year bull market. He points out that the fed and Interest Rates could be a variable here, but missed Interest Rates are misunderstood and he will would like higher Interest Rates. There a number of reasons why it failed. Those are the reasons among many that the market rally could falter here. Back over to you. Cnbcs Jonathan Malloy and they wrote a piece on cnbc. You can catch it right now at powerlunch. Cnbc. Com. Go check it out. We will indeed. Lets bring in the nyse floor. Great to have you with us. Between the two of you, i couldnt possibly count the ups and downs in the market. The two of you have seen that. Let me start with you. We had volume yesterday and we got the new record high. People are wondering, could we from these levels get break out . What do you feel . Usually when you set a new record closing high for the s p, you would see them inspire short covering. Its to get back in and thats lack luster and traders are disappointed and frustrated and 1ke79 cal. We have to move higher. How skeptical are you . The break out, we closed just a hair over a new high. We did make it and there is no fall. Its playing games with your head and making you think you will back off. Thats what you are going to see. The fact that the transportation has been badly lagging. Its troublesome and hanging dangerously support to key support. If it were to get another leg down you probably could get and the marked divergence between the s p and dow transportation. It holds and that will be the signal to give the market more reason to say its okay and off to the races. We can get conviction in the market. What do you think that needs to get conviction here. Today, for example. We had a scare in the bond market earlier in the week. Yields are down and that may be because we have that large treasury refunding out of the way. Ordinarily if the yields drop like this, they automatically, the robots have been by. I think that and that issue will be once its taken off the table or pushed back for another six months it will relieve the anxiety and add to that. The greek overhang. Have a great weekend. Tyler, back to you. Jackie is tracking all the action at nymex. Hi jackie. We are seeing pressure on a friday. Its not to be unexpected. More profit taking as we go into the weekend, but we are hanging out under 60 a barrel and watching to see if we will get a weekly win here. If so it would be the first time we have nine straight winning weeks and as far as the data goes back. We are watching the dollar as well and made sense that we were lower. That reversal not changing the picture here. We are a wading the recount numbers and we are supportive but not enough to change the course of the action today. Finally, i want to talk about gas prices. 2. 69 is the National Average according to aaa, up 30 cents since a month ago, but down 55 cents since a year ago. Always puts it in perspective. Wearing almost the same dress as me. Lets get to Mary Thompson with a new alert. As jackie was talking about, we have the Weekly Oil Rig count from baker hughes. Last week it was down eight to 660, down from 871 in the year ago. The decline is the smallest decrease that we have seen since december. Thats good news. We have seen a slowing in the decline, the number of rigs being put off line. The rig count is down eight in the last week, standing at 660. Thank you. Shares of Keurig Green Mountain getting hammered the worst performing in the s p 500 down about 8 at 94. 71. This came after a peek the the new cold machine, sarah eisen has more. The new cold machine is called kolk with a k for keurig. Investors and analysts only. A few disappointments. The machine starts at 299 and goes up to 369. The pods start at 99 cents. Its a lot more than buying a can or bottle of soda or water. The roll out plan also disappointed and goes on sale in the fall online only. Slower to Retail Stores and wont be fully available until Holiday Season 2016. Overall the company failed to wow the crowd and there was a lot riding on the machine for keurig and the partner, cocacola. They took a stake in for Green Mountain when announcing the partnership. Coke is the biggest shareholder in that company. Commentary from those at the event largely negative. They are saying the diet soda taste was off and the machine is big. This was supposed to be a panelist from the stock that went from being a darling from the market to one of the worst performers in the s p 500 and down nearly 30 on missteps and weak results relating to the hot machine. The 2. 0 hot brewer. They were hoping that the cold machine had turned around but clearly its just making things worse. I didnt get to taste it or touch it myself because press was shutout of the event. 299 feels like a lot to me. Shares of netflix trading above 600 for the first time ever. The online streaming giant may be looking to china for growth. Should you buy at these levels . Rain headed to california. Will it be enough to help the drought . 73 of americans try. To cook healthy meals. Yet up to 90 fall short in getting key nutrients from food alone. Lets do more. Add one a day mens 50 . Complete with key nutrients we may need. Plus it helps support healthy Blood Pressure with vitamin d and magnesium. Netflix is soaring and trading over 600 for the first time ever. Reports that the site is planning to enter chinas 6 billion online video market. Netflixs stock is completely on fire this year up almost 80 . Sitting at 650. 11. Pandora could force the Radio Service to pay higher roles to music licenses. The first smart phone devices are coming out next month, refuting a report that said delays with the home Automation Platform will be pushed back to launch until august or september. A cold storm is heading to Southern California. A lot of rain expected. The big question is whether it will be enough to help the drought. It is raining. Well i guess we got a break right now, but the umbrella makes a good prop. I got the dust off of it. Nothing makes sense in california if it ever did. We had record may rainfall. In san diego they had an inch in 90 minutes, causing a nearly unheard of rain delay at the paz res game. Downtown l. A. Had record rainfall. A. 16 inches. That is five times the previous record which was. 03. It gives you an idea. There is snow in big bear where they closed due to a lack of snow and now the amgen bike tour is being rerouted. Mother nature is fooling with us. Making a difference in the drought, no. But it helps. Forecasters are saying the el nino in the fall could be a drenching. Most residents cannot water their grass for the next few days and i left my car outside in the rain to get a free wash. Sorry this storm mostly hitting Southern California or some of the Central Valley getting impact at all . This one is mostly Southern California. There is another storm coming in. I am supposed to go to yosemite. They got snow last night and rain up there this week. The Central Valley is getting rain out of this. Jane in the rain. Impacts not just on farmers, but businesses and you the consumer. How bad is it going to get. Would you give up your privacy in exchange for cheaper insurance . What you eat or exercise or bad habits . One ceo is betting you will do that. can you keep your lifestyle in retirement . I dont want to think about the alternative. I dont even know how to answer that. I mean, no one knows how long their money is going to last. 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He doesnt expect major increases and maybe eggs would be the hardest hit. That has been the big issue since a number to have measures in place. We had circumstances and situations for producers who have not been as sinceative to the protocols as i think we would need them to be. The topics that have come up with Industry Experts in iowa and the like is whether we could import eggs from canada and mexico if supplies get too tight. The secretary said he doesnt think its necessary and i will plug mandy. We will put a story up talking about how all of this particularly egg prices and the moves we are starting to see there. If you want more information on that, go to cnbc. Com. What impact does the bird flew have on prices and prices that the consumer will pay . Lets bring in the professor from North Carolina state university. Let me ask you what will it mean, the death of Something Like 33 million laying hens. What is it going to mean for the price of egg eggs . Its harding to go up for the price of not only eggs, but more importantly the price of egg products that are used by bakers and ice cream makers. Hay make a wide variety of manufactured Food Products that you see all over the grocery store. We lost about the number i have is 27. 5 million laying hens confirmed and the number you are quoting confirms cases that havent been confirmed yet. Thats at least 20 . I heard several economists like you. They make a distinction between what are known as breaking eggs and table eggs or breakfast eggs. Is there a distinct in size between them . There is a distinction qualitatively and the breaking eggs are what your listeners know at the grocery store. They are produced under the same standards, but they go through operations in the plant and the shells are broken and they are made into 20 major egg products that go into a wide variety of foods. You cant believe how many are made out of something. Liquid eggs. Its not just liquid but dried and frozen. And whole eggs and yolks and whites. Let me turn to professor shane if i might. Where does it come from and can it be contained quickly . Its a tragedy for farmer who is lose 100 of their flocks . Where does it come from . It comes from it was introduced into the u. S. And it acquired the virus in asia. On the question of containment, we are near the end of the state and it has been devastated. Most are concentrated in iowa and sis once in and this is due in minnesota with turkeys. This is due to where the water foul are in their breeding grounds. We track this back into the farms. Could i infer from what you said that this was transmitted by water fowl probably flying south. When those birds then migrate back in the fall or next spring could we have another round of this . Actually it was brought into the United States by the birds heading north. Okay. What we probably will not see is a further outbreak as they head south through winter. There is no assurance that even if we eradicate the disease now at great cost both in terms of human effort and money that this will not recur. The disease is truly exotic. We havent had an outbreak since 1983. We may be in a situation where we have seasonal. It will be present in the United States for limited periods, probably every year. I need to wrap the professor. I want to ask tom one other question. That is very quickly, how long would it take the growers to restock or replenish their flocks . Quickly. There was only a limited Number Available every month. And we cant surge into a much larger supply. It will take 18 to 24 months to replace the birds. This is a longterm problem. Thank you very much for illuminating us. Tom and simon, we appreciate it. Mandy . Thank you so much. The bond market Rick Santelli is checking the action at the cme. It might be like a tom cruise movie. The adjustment in Interest Rates is over. I cant tell you for sure but a twoday chart looks at least based on post auction. We had 64 billion in supply. Threes tens and 30s. Europe is settled back a bit. Look at the macro chart on the summer of 2011. Why . You see them on the left side. In 2011 and in 2012. They were whiskered under 240. Interday on the right, we had a spike very close to the same level on the closing basis. It closes at 229. Watch the area and continues to be important. Many surprises may be left before selling, but for the moment, we are down not only on the day, but down on the week. We settle at 215. If you look at the last chart, this is the dollar index. Many say this is more of a reality and it has lower rates. It seems that the dollar is far from over. The longest weekly losing streak since december of 2013. Netflix is soaring by nearly 5 trading above 600 for the first time ever. Its up 80 this year alone. Is the stock still a buy . We will be speaking with one in a big way. The market is not in a bubble. Is he right . Theres some facts about seaworld wed like you to know. We dont collect killer whales from the wild. And havent for 35 years. With the hightest standard of animal care in the world, our whales are healthy. Theyre thriving. I wouldnt work here if they werent. And Government Research shows they live just as long as whales in the wild. Caring for these whales, we have a great responsibility to get that right. And we take it very seriously. Because we love them. And we know you love them too. Here at the Td Ameritrade trader group, they work all the time. Sup jj . Working hard . Working 24 7 on mobile trader, rated 1 trading app in the app store. It lets you trade stocks options, futures. Even advanced orders. And it offers more charts than a lot of the other competitors do in desktop. You work so late. I guess you dont see your family very much . I see them all the time. Did you finish your derivative pricing model, honey . For all the confidence you need. Td ameritrade. You got this. President obama honoring Law Enforcement officers killed in the line of duty. He placed a flower in a memorial wreath in memory of officers killed while serving the communities. He called Police Officers the countrys heroes. We are here to honor hero who is lost their lives in the line of duty. Men and women who put themselves in the way of danger so that the rest of us could live in safety. The last wrecked car has been removed from the tracks following tuesday nights deadly crash in philadelphia. The ntsb said the energy of the train agreed to talk to federal accident investigators. The ceo said in a letter on the railroads blog that amtrak takes full responsibility and deeply apologizes for their role in the crash. Former Texas Governor rick perry will announce whether he will mount a second bid for the pedestrian. Post holdings will merge before moving headquarters from st. Louis to minnesota. It will close the new Jersey Office affecting about 200 employees. Thats the news for this hour. Back to you, mandy. We are watching shares on a tear today up by about 8 nearing the highs today. Jpmorgan and barclays, raised on the hamburger chain stock after they reported a surprise profit on wednesday. They recovered from a recent dip over the past couple of weeks. Still just about 1 from a record close. Bertha coombs is keeping an eye on the mover. Netflix is the eye popper on reports it could be expanding into china. That helps to keep the nasdaq and for the week, they are poised to take the losing streak. We saw a movement back into big cap tech and it has been the chips that have done very well. Today they are the leaders. Talking to zy links about a merger there and that keeps the stocks moving higher. We have a number of lagers and el polo loco getting support to the wood shed. They are being taken down and saying that its not going to put into cold brewers. That is balancing against them. Back to you. Thats the nasdaq. Lets look at the dow and the s p. The bridge Water Associates and the Biggest Hedge Fund said the market is not about to burst. That is obtained by cnbc and prices are high and the future expected returns with investing are likely to be low. We do not see Current Conditions as a bubble. Joining us now, chief investment strategist on private banking. The Global Investment strategist, great of you to join us today. How would you classify the Current Conditions . Current conditions and evaluations that are slightly above average and not indicating a bubble. We have to remember that the same buyer is still in the market that has been driving stocks higher for five or six years. Thats the corporations. Remember corporations buy backs and have done the heavy lifting and m a is picking up. April was the second largest month in 15 years for deal volume. The corporations based on cash moving this market higher. They are in a low growth environment to buy earnings per share. Buying a smaller competitor is an attractive way to approximate uh it to use. It will continue. How do you see the lay of the land here . I characterize it as three yards up the middle in a cloud of dust. If you pardon the out of season metaphor, what is driving the market is earnings and they are modest and there is a lot of volatility around it. And the rate hike is baked into the market, baked into the cake if you like. Do you think that maybe that could be pushed back and how would that change the out come for the market this year . There is a risk and that is datadependent. I believe the fed wants to put a hike on the table if for no other reason they remember how to do it. 25 basis points or a handful on the fed funds still is not tight monetary policy. We are expecting that slip to weaken between now and then. That is emerging markets. Why do you like the emerging markets here . They are one of the areas that are at or below the averages. They are generating earnings growths and they are turning higher. Remember the top line is really important here. You have the faster growth in the emerging markets. To scatter from india and brazil. China. Shanghai or hong kong . Both. Companies that play the domestic demand and consumption. Not an export strategy. Its all about consumption. Great of to you join us. Have a great weekend. Go to power lunch to see why jeff said if you are not in europe, now is the time to get in. Ty . Mandy, a very interesting topic we will cover. Would you will give your Insurance Company insurance on your habits. How much you exercise and what you eat to get savings on your health and Life Experience some with the help of wearable technology, the South African Insurance Company is offering discounts to customers for healthier living. Incentivizing health. It is called vitality and joining us now to talk about it the founder and ceo of discovery. Good to have you with us. Does this Vitality Program that you had in place for many years and now enabled by apps and cell phones and wearables, does this apply to all of your health and Life Experience products . Yes, it does. The jdidea is if you buy something, eating right kinds of foods gives you points and massive savings. How do you know whether im eating well or not . I can see how an app or a wearable can tell you hes exercising and walking his 10,000 steps and went to the gym today, but how does it know . Is it honors system . Everything we do is verified. We check the data carefully. We give off discounts on healthy foods. We look at the food you buy and incentivize that. With food, do we know that you eat it maybe not. It shows that people tend to eat it when they buy it. The data is compelling and its working well. Do people mind the fact that you are collecting this data. I dont mind if you collect data about me that i eat healthy, but i might mind if you collect it on bad habits like if i was a smoker or had a few too many drinks each week. Even if it is potentially in return for premiums. The fact that its positive people dont see the downside at all. They give consent. Importantly, people give incentives. We never had an issue of people withholding the data. So let me ask you about how you make money off of this. I know that Insurance Companies are not charitable organizations. I see how the consumer saves money. Why does it work from a profit standpoint for you . Its a key issue. We called it shared value insurance. People behavior better from a Health Perspective and we share the profitability. I think sharing the value makes us more profitability. We are the insurer. That remains the same. Sharing the profitability. Do you expect right now, you are involved with john hancock in the United States. This is a Global Company and many regions of the world. Do you think that this will be a transformative kind of technology, a transformative concept in insurance over the next 20 years partly because of what cell phones and wearables can do . I do. Besides the cell phones 50 of the mortality risk is behavioral. How you eat and 80 of the disease is. We are working with companies around the country and in europe. All of the Major Companies are looking at highly controlled and making the customers healthier. Its very interesting because you think about if someone lives in extremely lifestyle, i can see them saying i want to share all of my data with you because that will turn into savings for me as it should. I am a less bad risk for you. If i am 40 pounds overweight and have Health Conditions and maybe i dont want to do that. It is an issue. Why do people not do that . We are learning about economics and there is a cost. The benefits are 20 years away. They are delayed. We are providing Strong Financial incentives to get them to change behaviors. A healthy person doesnt automatically, but we try to get people over the line to do that. It works well. I could listen to you all day with that wonderful voice of yours. Would you read a bedtime story to my son, please . Good luck with the product. It is a fantastic accent. I love it. I am a lucky guy. Two nice accents around me. A day of rain in california and as you know they could certainly use it. Heres the weather channel. This rain in san diego is pretty unusual. In fact the last time in the month of may we have seen this much rain was when William Harding was president. This is anything but normal. We are out of season. Lets look at where we are with san diego, l. A. , and fresno. All picking up a decent rain between last weekend and the end of this week. Rain all well above average. We are going to continue to see more rain again through today until the whole big upper level system moves out through tonight. There will be more rain in arizona and mountain snow in flagstaff. They have seen in Southern California, rainfall adding up to about to two inches before things quiet down for the weekend. Thats the latest from the weather channel. Back to you. Googles selfdriving car is getting the green light to cruise on public streets in california. We will have the latest on that and former president ial nominee mitt romney gearing up for a new fight. This time has nothing to do with politics that. Is straight ahead. music plays throughout the pursuit of healthier. It begins from the second were born. After all, healthier doesnt happen all by itself. It needs to be earned. Every day. From the smallest detail to the boldest leap. Healthier means using wellness to keep away illness. Knowing a prescription is way more than the pills. And believing that a single life can be made better by millions of others. Healthier takes somebody who can power modern health care. By connecting every single part of it. Realizing cold hard data can inspire warmth and compassion. And that when Technology Meets expertise. Everything is possible. For as long as the world keeps on searching for healthier. Were here to make healthier happen. Optum. Healthier is here. Former president ial nominee romney and world heavy weight champion Evander Holyfield will fight each other for a good cause in salt lake city. Romney at 179 pounds. Holy field at 236. Seth meyers weighing in on the whole thing on his program. Mitt romney will box and someone can honestly say mitt i think you should run. Its going to be a good one. Do we get off the road now or will it be okay . I think it will be interesting to see what happens over the next year or two. Google is accelerating the research into autonomous drive vehicles. We have shown you this before. This is the latest prototype from google. We have seen it on closed courses and not real world streets in traffic. Thats about to change. Google announcing that it will be putting prototypes out in traffic in Mountain View california. There will be test drivers on board. Announcing this move to have the test vehicles out on the road, the program said each prototypes speed is capped at a neighborhoodfriendly 25 miles per hour. We will have a removable Steering Wheel and pedal and brake pedal that allowed them to take over driving if needed. Keep in mind this is still in the research phase. When people look at the cars they say there is nothing on the inside. Thats by design. Ultimately google believes you will get into one of the cars for a similar car. Bless a button and they will take you where you need to go. You wont have to steer and hit the brake and control the accelerator, etc. This is a company that is facing a fair amount of questions about the report that came out earlier this week where the company said there have been 11 accidents. Low speed accidents involving googles prototype vehicles out on the road as we have been doing research over 1. 1 million miles. They are saying we will continue that research, but yes, there will be a test driver on board. Guys . Back to you. The stock passed the 600 a share mark almost almost 5 . They have their eye on expansion. We will tell you all about it straight ahead and getting out of the rat race. Coming up a new career inspired by a change in scenery. I knew that my next career would not be in new york city. That was my start. Escaping the cube, next. It took Tim Morehouse years to master the perfect lunge. But only one attempt to master depositing checks at chase atms. Technology designed for you. So you can easily master the way you bank. That was slash, former lead guitarist for guns and roses and for more on his transition from music to business go to powerlunch. Cnbc. Com and see what slash is up to. A former ad Sales Executive traded in the concrete jungle for the quiet of the country. He returned his weekend house into a b and b. His term working from home. I had a mentor who said if this is not what you want to do i suggest you get out now. Hi. Im the owner of hudson Merchant House. I used to work in ad sales finance. I was at ntv for two years and fox sports and e and i traveled a lot and worked hard. Very long days. I needed something outside of the city to kind of regroup and in 2008 i performed the house in hudson as a weekend house. It was neglected for many years. It didnt have plumbing or electricity. The renovation took with a year. A friend of mine said to me it was like staying at a bed and breakfast. Thats how i knew this house could be something more. My original intent was to rent a couple of rooms and keep the house running. I had a guest who took a picture and put it on instagram. A blogger saw the picture and did a piece on hudson Merchant House and one of her followers was Martha Stewart and it blossomed from there. I was commuteing for hud to manhattan for work. I realized i needed to be there day to day. It took about three months to do this full time. We had a few celebrity guests. Usher and katy perry. I had an interior designer who said it would be a great piece for a client of mine. How much is it . I realized a secondary source of income was selling art and lighting off the shelves. The future of hudson house would be to expand the brand. Having the house allowed me to create the job that would revolve around things that made me happy. The rest is gravy. Looks beautiful. Lets go to dominic for a quick flash. We have shares spiking after marylands Service Commission has conditionally approved the acquisition of the company. That dole was announced back on april 30th and agrees to acquire petco in cash. A Regulatory Approval and conditionally approved. You see them spiking by about 8 . Back over to you. When it comes to the Housing Market the numbers dont quite add up. Cars and phones. We are more connected than ever. Are we more vulnerable to hackers . More on your friday markets coming up and do you think you are a smart investor . We have a friday quiz for you. We have the analysts who say sell one and why netflix may be a big time buy and the stock that is the Biggest Holding of one of americas most successful and Secretive Hedge Fund managers. We are always combing through those sec filings. Just for a little light reading. New members are in and the cuts continue but fewer rigs in operation today than a week ago. Netflix crossing the 600 a share mark as they are in talks to move to china. Its up to 14 of the poultry export market. He believes there is adequate domestic supply of chickens and the major price increases, but egg prices may still climb. If you missed any of the stories, visit our site at powerlunch. Cnbc. Com. To housing now and when it comes to the numbers, it seems something is not quite right. Hi, diana. Right. Not seeing what we need to see in the Housing Market. The numbers we have already tell the story. In q1 they fell 25 quarter to quarter. Builders still not ratching up production and the sector was downgraded. The all cash share fell high at 38 pointing to tight credit. Investors are at the highest level since 2011. Not the institutional, but mom and pop coming back. This has home prices reaccelerate and price First Time Buyers out of the market. It is all about supply and a lack of it across the nation. We talked about the Portland Oregon Housing Market where bidding wars abound. Same in houston and San Francisco home prices at record highs and inventory at record lowsful we are talking about that online about the numbers. They dont make sense in what seems like a robust market. Its all local. Some markets, its like my neighborhood in new jersey. It is hot. Hot. Its telling the same story in seattle to d. C. Lack of supply. Good to have you in the house. I didnt get the blue dress. I wore the gray and my pink tie. He can lead it. That will do it for the first hour. Thanks for joining us. Stick around for the second hour of power with brian and melissa. 11 00 in rainy Southern California. Taking a hit and hi everybody. Im brian sullivan. We have a quiz in a moment. This one is not only educational, but fun. If you think the stock markets are fun as we clearly do. I do. I dont know about you. I certainly do. Lets look at whats going on in the markets. If you look at how the major indeces are doing, fractions of a percent moves here. We will see big movements on stocks and look at the bond market. The etf attracts the utilities. That is the best performers. With us now with a few things that could push us higher. The last hour we told you the skeptics could drag us down. That balances out the story on the market. First of all, you take a look at the s p 500. The volatility you have seen. That has been a phenomenon for the past few months and that ran into a bit of resistance. What could fuel the rally . Over at rbc capital, we have seen a downtrend since the year started. That is setting the stage for a nice continuation of the move higher in stocks. Also Gina Martin Adams said the dollar is done rallying. If so that could be good for stocks. They were a drag on earnings and oil done falling. Oil stocks and the Energy Complex with drags on the earnings picture as well. Thats a good sign if that happens. Brian is a notable bull on call street that is about sentiment. Thats a bit of the softer side of the equation. You know what guys. We are in the 6th year of a bull market cycle if people start believing in it. Thats when you see the stock market go higher. Thats the other side of the coin. The positives this time around. Thanks so much. John just wrote a piece on the story for cnbc pro. You can catch it now on powerlunch. Cnbc. Com. What better way to start a friday show than with a test. This may help you profit. We are testing your knowledge because what you have been watching your American Investments and the markets overseas have been on fire. Are you ready . Lets go. This will be a quick one. Question one, how much are the german and the french higher this year . Answer, both are up nearly 17 , 14 more than the dow just this year. Question two, what is the best performing stock this past year. Peugeot. 14 of the 40 indeces are up more than 15 . Question three, what is the best performing stock in the german dax . Lanxess is based on the beautiful town. Question four, what are the Biggest Companies in germany, france and italy . Germ knowy is bare. Market cap about 7 billion euros. France sanofi. Last question i promise. How many of the 110 companies in the dax and cac and ftse are down this year . Thats 12 companies only out of 110 names in the 3com bined indeces are down this year. An incredible run for europe. We ask, is europe still a good bet . Let us bring in the president and ceo of the Asset Management with wells fargo investments. The reason we did the test was to have fun with how amazingly hot these markets have been especially priced in u. S. Dollars. The natural question is is the run over . Did the viewers miss it . I dont think they have. They are investing in advance and investing in 2009. The reserve is stimulating the market and look at the run they have been on. Thats what the investors are anticipating. Is it going to happen today or next year . Its going to happen so they are trying to trade ahead of the momentum. How much of that is the recovery playing in europe and how much might be hey, investors are waking up to the fact that if you buy the Big Companies in europe they do most of the sales here. Its a discounted way to play the american recovery as well. Its probably a little bit of both i would say. I like european stocks a lot more when we were not having the quizzes and we were not paying attention to whats going on. Kevin is right, there a lot of positives to focus on. Investing goes back to gauge what expectations are and whether we are running ahead or behind it. For right now, you have more room to run for european equities. I would say that performance has not gone unnoticed. You have seen that in the euro. We want people to say balanced in the u. S. And the european markets. We think both have further run. Sorry there, you think they have further to run. Is there one market or group of stocks that would be better for the listener and viewers money . We have been trying to focus on companies that have solid fundamentals due to the rebound doing well before the crisis in greece. We like germany and the uk. We like witserland which is maybe something people dont think about and a huge play on the consumer. Thats a big company and Consumer Staples companies that are based out of there. Both beautiful companies that we had to leave off in the interest of time. Did you agree on where to invest . You guys are professionals. For the viewers at home who maybe think they want to allocate in europe where should they do it . We have a product based on those growing their difdependents internationally. Based on outside the United States, they remove the risk. Two particular names in the current series unilever. The u. S. Headquarters is 50 feet. Not far from where they are now. The swissbased health care company. Two attractive ways. How much of the run is literally qe . Just the stimulus or is there a Real Recovery . I know you mentioned it at the top, but a lot of people say our market is up in the last few years. How much of that is driving . Its all driving. Then how long will it drag on . If you think about it market is straight up in advance of the recovery. If you look at where we are, the markets have been well ahead of the recovery and we are well ahead of the u. S. Recovery. Its a question of when we allocate more to europe and international. That might be the right time. Thank you very much. Thank you. Market flash. Heres what we are talking about. Bed, bath and beyond shares. They have been sticking about 4. 5 to the upside. Whats driving this is a 13 f filing from noted Retail Investor Leonard Green and partners. In that, they disclosed a stake of 990,000 shares worth of bed, bath and beyond. Whats interesting about this disclosure is that the state is not new. According to filings, this company has been building the stake over the course of the past year perhaps more. They have filed for exemptions to disclose them during that time. Meaning they made a confidential filing in order to build this position so again, the stake appears not to be new, but it has been newly disclosed because they received this exemption. What is notable about this is that in this current regulatory filing as of 3 31 15, they made other filings and we dont know what they have done for at least one other position. We will know that in future installments of the regulatory filings. Again, they filed to disclose they have a confidential filing as well for the current period. Back over to you. Bed, bath and beyond. Green mountain coffee releasing a cold system that is getting a cold shoulder. The stock is trading lower by 8 already on the day. 8, not 8 . For greenberg, caroline you have an under performed rating and lowered the target. You valued kohls by about 5 a share. The stock is moving more than 5 a share to the downside. What is the worst Case Scenario that pulls out for Green Mountain. I dont see that but i think what we did with the valuation on them was we launched them saying it was worth about 14 a share and we lowered it about to about nine. Worst case is not only do they not work, but that they encounter more problems one of which we have already seen. Pricing going down. You point that out that keurig has not just faced problems with the cold side but the hod side is showing signs of distress. They sort of whiffed it with the 2. 0 brewer that confused the market place on what people think Green Mountain is. The real story here is cold and will be cold until we see what happens with cold which was demonstrated yesterday. There is a lot of talk about what they will do here. Lets not forget. It was a year ago, about 53 weeks in fact that coke raised their stake to 15 . Remember this was a mere prototype. It was barely a prototype. As it rolled out, it seems like its taking longer than people expected. Prices are much higher than people expected. We thought yesterday they were less. From your stand point and what we know now, is it dead in the water . It costs a lot of money and they broke it down in terms of cost per soda that you might brew at home . Thats a very expensive coke. Very expensive. And the idea that this will reach into multiple households i think is a nichy product if the machine performs well. If it doesnt perform well i think you will see further delays in the roll out. We have seen that effective flee what they claim will be a National Roll out. I think there is problems and one is the recycling of the pod which is not a natural for most consumers. You have to have a number seven unit near you to do that. Its actually quite a bulky product, the pod. Lets bring it to everyones kitchen where there is a lack of counter and storage space. Thats another thing you have to factor in. Absolutely. Thanks so much. Yesterday the markets got pranked by what was clearly a bogus take over bid for avon. We helped debunk it in about an hour. There is a bigger question we touched on and we need to big into more now. How does such a bogus bid get on the official platform . Amy has been in touch with the sec and joins us with more. Its a darn good question. Thats right. It turns out that almost anybody can file documents to the official Document Delivery Service known as edgar. All you have to do to get on edgar is file a form. I spoke with brian with the law firm and he walked me through how the process works. Its just a twopage document that you have to fill out. Once you do they will send you the security codes to then file documents on the secs site edgar. They dont even check to see if you are a real person. Your phone number checks out and they send the codes out. Thats apparently what happened in the avon incident yesterday. Somebody filed a fake company with the sec and got the codes and the only document that fake company apparently as filed was the press release in avon. Its a document that you file and boom you are off to the races. They tag avon and everybody who subscribes about avon and all the Wire Services see that information in realtime. I asked them about all of this and heres what they told us in a written statement. Under the federal secures laws filers are responsible for the truthfulness of their filings and they are subject to enforcement when they are false or misleading. Assuming you know who they are. Thats right. In this case if we find you. Right. A Parent Company was registered and list the address in the indian ocean. Aqua man. Thank you very much. Here is your power menu for the rest of the hour. One Hedge Fund Manager making two big bets on energy. Plus netflix hitting a milestone and one analyst said that stock has way more room to run, thus the song. Any sinkhole that you need to see to believe. It is in texas. Ed people a simple question in retirement, will you have enough money to live life on your terms . I sure hope so. With healthcare costs, who knows. Umm. Everyone has retirement questions. So ameriprise created the exclusive confident retirement approach. Now you and your ameripise advisor. Can get the real answers you need. Start building your confident retirement today. Your weekly oil and gas drilling point is out. Baker hughes reporting more oil rigs were laid down last week the smallest decline since december. Seth was one of the most respected and Secretive Hedge Fund managers in the world. They take big positions in a couple of stocks. As secretive as he is you cant ride from us. We dug through the filings and this reflects the holdings in the first quarter. The positions generally dont change much. Break out a pen and remember these stocks. The resources, atra. He is adding to many of the names. His ticker is klxi. He hates the company and the biggest position by dollars is still sha near energy. He never does tv he wrote a book with the margin of safety and it costs thousands of dollars. What do you make when you look at what he owns what do you make of it . That are book really is one of the bibles of the industry and its hard to find. People note the price in the secondary market. The investment and pioneer is striking given the drubbing that the stock has taken since David Einhorn took calling it the mother fracker and the prospects in the environment. Perhaps he was thinking that the stock had bottomed and its up more than 20 a share from the december lows. Even with the haircut from the last days to two weeksment its not just stocks that are benefiting from the rally. Gains of more than 37 . Just as Retail Prices have risen to about 2. Gas feels cheap right now as opposed to last summer. Diesel known as gas oil and crude are up. West texas intermediate which is the benchmark crude is not quite as strong but with 11 upside its still in the top five. Whether u. S. Crude bottomed is the question of the moment. The market is decided on that. Some like Goldman Sachs believe the recent upside encourages new drilling and delay the rebalancing. They are bullish and suggest the best days may be behind it. Kate thank you. Have a great weekend. Thank you. Net flex here crossing the 600 mark for the first time ever. One analyst said the stock has nearly 50 more upside to it. Further prove that everything is bigger in texas. We will explain when power lunch returns. Financial noise financial noise financial noise call 1800royal caribbean or your travel agent today. Further proof that everything is bigger in texas. You are looking at a giant sink hole in the northern part of the state that measures 40 feet wide and 30 feet deep. Heavy rains are being blamed for creating this massive sinkhole. Wow. Shares of netflix looking like anything but a house of cards. Stock trading about 600 a share for the first time ever. This is multiple reports for those who take them into china. The Capital Markets have an outperform rating because he has a 900 price target, another 45 to the stock that is already up 80 for the year. What is going to give them another 15 or so billion in market cap in 12 months . The business is on fire right now. Half or more said if they had to choose, they would drop ktvpay tv before netflix. The rest loves what we watch on netflix. China is going to love it. These guys are not going to be going vertical. They drop the scale at content cost. Each tops to the bottom line. They will see this company go vertical and they want to own that. This is at the forefront of the change in home entertainment. People want on demand content. Netflix is leading that and there is tons of valley to come from that. Lets go to the china issue. You upgraded before china was a glimmer in the eyes of journalists. Walk us through what the economics could be in china. They wont be the same or i imagine because of foreign content rules, it wouldnt be for them to have content there. They entered as a joint venture. There is 200 million in the u. S. There is a little class that can afford to subscribe. I think there could be tremendous opportunity that they flit with a local partner. The street has been conceptually good, but no one has it in their numbers. It could be an increment with the value of your stock. Sorry there a risk to their own success. As netflix continues to kill it we dont have a more technical phrase for that. The content, you can say they are banking coin. We will charge you more now. Will netflix continue to rise hurting margins . Netflix is spending more on content and they are getting bigger contact and more and its work. People like netflix and they dont pay more in countries where they are established. I think what they have done to start is take a spaghetti against the wall approach. They throw it and see what sticks. They clean it up and focus on what drives the subscription. Thats a formula for a longterm expansion. Do they have more leverage . I dont think. There is a ton of content that people like. They can pick and choose. They are at scale. I think they are in an advantage negotiating position and more overtime with the content. It was a pleasure. Thanks for coming on the program. Thank you. Will the final oil trade cross for the week . We are heading live when power lunch returns. Brap at chase, we celebrate Small Businesses every day through programs like mission main street grants. Last years grant recipients are achieving amazing things. Carving a name for myself and creating local jobs. Creating more programs for these little bookworms. Bringing a taste of louisiana to the world. At chase, were proud to support our grant recipients and Small Businesses like yours. So you can take the next big step. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . With xfinity from comcast you can manage your account anytime, anywhere on any device. Just sign into my account to pay bills manage Service Appointments and find answers to your questions. You can even check your connection status on your phone. Now its easier than ever to manage your account. Get started at xfinity. Com myaccount. Hello, everyone. Heres your cnbc news update. Tokyo electric beginning to remove the cover from the nuclear reactors. They are trying to remove it. Once that is clear they will remove the nuclear rods. 11 missing miners were trapped in columbia. All 15 trapped after the mine suddenly flooded. The Roman Catholic church will get two new saints. Pope francis will canonize the nun who is lived and worked in palestine. The portraits of the two were hanging on the facade of the basilica this morning. The women are taking center stage at the khan film festival. Natalie portman and Charlize Theron have been frontrunners. Since 1987, it opened with the film directed by a woman. That is the cnbc update this hour. Lets go to dominic chrksu. The stock is tracking for the best day since is gained 14 . They have been awarded a contract in mozambique. By the likes of anadarko. They also landed in lng project in texas. Two big contracts helping to protelethat stock higher. Back over to you. Interesting stuff there. Despite climbing to more than 60 a barrel, they are slumping right now and ended where it began. We lost ground, but rebounded the. 59. 70 is where we will close down 20 cents. And we have never seen this before. Thats the june spot price i am watching. We had the rate count numbers come out before a decline of eight oil rigs. Slower pace than before. Thank you very much. Time for street talks and stocks you need to know about. The first stock is downgraded and the analyst said the industry is in dire straights. Also sees potential for a liquidity crunch for farmers and cut the target to 84. Every major ag commodity, wheat sugar, soy, and corn is down year to date. Interesting in his most recent filing Warren Buffett in the fourth quarter. The increase is by 10 million. Im looking at you. Im looking at you also. Next up we have goldman up. Upgrading and raising the price target to 119 from 110. They will outperform in general and they keep it on the conviction buy list. Dr. J and i said we flagged unusual activity and that pointed to potential activists. Thats why hes a doctor. He pointed it out. Good call if you are out there. Great call and good eyes. Next up, six flags. An outperform rating saying despite the valuation, the stock continues to grow at an unmatched rate of the competition. Their target is 58, about 20 off. Heres an interesting fact. The revenues out of six flags mexico in the first quarter. Larger than the revenues here in the United States. We had no idea. Next up our solar and bank of america upgrading to neutral and unfolding margin recovery story. The global steel market with the oversupply. There has been a year to date supply out of china as well as increased probability. Stocks are high. We have done the europe quiz. That was a great quiz by the way. The primary trade is in france. Its up 20 . Hotter than rolled steel. Hot rolled steel. Is there any other kind . Todays under the radar name. I hope i am pronouncing it right. It is based in maryland and data an lytics is serving health care and Goldman Sachs upgradeing it to a buy. They say the company has a large addressable market. Nine analyst cover at 33. Goldman coming to the rescue. Not just down. Its ugly and take a look at the moving averages. 50 below the 200 Day Moving Average which is the cross. Today its alive. Its up almost 7 . 165 on the goldman note. Its the name of a watch. That was street talk for today. No doubt by now you heard of the socalled internet of things. Everyone said its going to be big. The hacking of the internet of things and how to protect yourself, straight ahead. 8003452550 300 commissionfree online trades. Tdd 18003452550 so if you get a trade idea schwab can help you take it on. Tdd 18003452550 were getting a lot of questions tdd 18003452550 about organic food stocks. Tdd 18003452550 [ male announcer ] sharpen your instincts tdd 18003452550 with indepth analysis by schwab experts. Tdd 18003452550 and if you want to run your idea tdd 18003452550 by a schwab trading specialist, tdd 18003452550 our expertise is just a tap away. Tdd 18003452550 whats on your mind lisa . Tdd 18003452550 id like to talk about a trade idea. Tdd 18003452550 lets hear it. Tdd 18003452550 [ male announcer ] see how schwab can help tdd 18003452550 light a way forward. Tdd 18003452550 so you can make your move, wherever you are tdd 18003452550 and start working on your next big idea. Tdd 18003452550 tdd 18003452550 open a schwab account and you could earn tdd 18003452550 300 commissionfree online trades. Tdd 18003452550 call 18776703357. Tdd 18003452550 or visit schwab. Com trading. Tdd 18003452550 schwab trading services. Tdd 18003452550 your goto for trading knowhow. Tdd 18003452550. The technology involves the hacking of devices and starbucks customers chaimed money was stolen through the mobile app, but in a statement starbucks said the mobile app had been hacked are false. They got to thinking whether there could be other threats. Apple is expected to unveil the home kit and could turn the system into garage doors and looks. They said the self driving cars will hit the road as soon as this summer. How worried should we be and what can we do to protect ourselves . Eric is a Senior Editor with them. I want to start off with you. Set the table in terms of the devices. Any time you hook up anything whether its thermostat or a lock or a smart coffee maker to assist them it is hackable. We have to think about the devices as computers. In many cases they are rung an operating system for a computer. They can be accessed with the same techniques that can be used to hack a computer. We found that we did a story on this last month where the Security Software firm looked at numerous devices and found that a lot of these Garage Door Openers and home cameras and different devices used to connect Different Things around the home could be hacked as readily as computers. They are not going to bother hacking in to turn your coffee maker on. What is the biggest risk here when it comes to personal home devices being connected to a network. Any time you have a device that can be hooked up to the internet. Its up to us to take extraordinary controls. With the designers themselves you think about someone wanting to get into the home and unlock your door and rob your home and how about businesses and other commercial establishments . To cause a nuisance or get in to burglarize and steal products for instance. I want to jump in quickly because there was a flash at the bottom of the screen with those who cant see it. The verdict of the sentencing will be announced at 3 00 eastern time. The boston bomber verdict in the sentencing part of that trial just crossed and looked for the death penalty. They should have in prison and i apologize to jump in but thats big news. Its beginning to feel as a consumer who is not an it professional, that the biggest and the only way to protect yourself is safety in numbers. Is it just luck . Is there anything our audience can do . I think one of the things should be hold the manufacturers to the buyer in terms of security. Referring back to that story that i wrote about last month, they looked at Garage Door Openers and cameras and other hub devices for the home. They found that the designers had not really thought about security from the ground up. We have apples home kid coming in here, and i have to say apple has a good record basically by running a benign dictatorship with the approval of apps and Software Development technique, but apple is not infallible in the issues either. Basically demand from the companies that are making the product as they think about security from the first. When you think about selfdriving cars you are thinking about smart cities and the fact that cars will be able to communicate and cars will be able to communicate with traffic lights. That could open up a new elm to wreak havoc on a city. If those cars will be feasible, they have to prove. Google will have to prove why cant this happen . How are we preventing my car from being driven off the road . If they can prove that thats impossible for this to occur. People will feel more comfortable. Great topic and thanks for joining us. Youre welcome. It is now time for trading nation. Our daily dive into whatever we want or you demand. Lets look at wind. Investors have been losing. An options trader on the market a technician and john im going to begin with you first. The stock has been in a downward spiral and is there any sign of a turn around. I dont see any. I think we are trading about 107 1 2 right now. It looks to me like the next level is around 103. Actually thats the low from november of 2012. You can see it on the shart there. I think we at least get down there. I was looking to find some kind of positive news in the chart. I didnt see any. If we get through 103, the next big level is 84. Those are the lows from the summer time of 2012. 103 is a reality and you have to watch it get through there. We could have a deeper dive. Point noted. Wop 103. Any sign of a change in luck . We havent seen that much coming in yet. I agree with john this stock looks like it is headed lower. Hitting the lowdown over 21 . Year over year down 47 . The numbers are bad and the earnings are bad. It doesnt seem like there is anything that can make the stock go higher. Im not looking to put out a short position here. I use the option market to figure out how much a stock can move between now and any day. Between now and the end of the year, they are implying the 25 move to up to 130 or down 80. Shortterm bottoms are usually on a big volume day and reversal. Big volume and closes on the high of the day. Its a short rally. Dont like it technically. Sometimes thats what things turn. Thank you both very much. For more trading nation head to our website. Up next we talk about the karmt. Live in l. A. With that. This is boring old corporate karmt. Casino carpeting not boring. What do do you with it when it gets old . We go with whats underneath the carpet. What one casino is doing with a very large problem. After the break. Id like to put in my 15year notice. Youre quitting . Technically retiring, sir. With a little help from my state farm agent, i plan to retire in 15 years. Wow. Youre totally blindsiding me here. Whose going to manage your accounts . This is a devastating blow i was not prepared for. Take charge of your retirement. Talk to a state farm agent today. If youre looking for a car that drives you. And takes the wheel right from your very hands. This isnt that car. The first and only car with direct adaptive steering. The 328 horsepower q50 from infiniti. There is an ancient rhythm. [ ] that flows through all things. Through rocky spires. [ ] and oceans swell. [ ] the endless. Stillness of green. [ ] and in the restless depths of human hearts. [ ] the voice of the wild within. With xfinity from comcast you can manage your account anytime, anywhere on any device. Just sign into my account to pay bills manage Service Appointments and find answers to your questions. You can even check your connection status on your phone. Now its easier than ever to manage your account. Get started at xfinity. Com myaccount. Good afternoon, we have breaking news. The injury reached a verdict in the boston bombing suspects case. As you know this is the in the first trial, the penalty phase is to be decided. There are a number of key questions when the jury convenes at 3 30 with the court, in the court, that the jury will have to answer. But the key question comes right at the end, will he be sentenced to life in prison or will he be sentenced to death through lethal injection . The court does convene again at 3 00 p. M. We expect them to go through all of these various questions, which nbc was estimating might take between half hour 45 minutes and then the final question is what will be the penalty . Well be monitoring that whole situation for you and we will bring you the verdict as well. Melissa, back to you. Thanks so much. Sue herera. Lets get a quick check of the markets on this friday session. Were just about flat in the session. Utilities are leading the s p 500 and we got a number of standout names within the index, tesla, for instance, is higher by 2 netflix is hitting a new alltime high in todays session. As we know jane wells is always on top of the story except for this story, because this time shes under the story. Getting a pile of info from the carpet business. Pile . No . Jane. You can say pile. I was going to make a shag comment, that wouldnt go well, baby. You already did. Too late. Carpeting takes a beating. Thats why this is dark and texture. Casino carpeting takes it to a whole other level. One casino is taking it to a whole other level when it comes to replacing the old stuff. The carpet that comes in is made from resickled edrecycle materials. The padding is made from 100 recycled carpet itself. If you can understand how much carpet is in one of these casinos, basically just to do the main floor down there, it would be like an average house, say 150 yards. You would take 1,000 of those houses and dump them in the landfall. They dont they done the do that. Weve heard everything from keeping you not looking down or you know making you stay awake, making you look straight ahead at the machines instead of the carpeting. Then theres the more practical possibility of perhaps, you know hiding stains. We try and work in natural elements kind of bringing the outside a little bit in. Now, why is this happening in california . In particular . California mandates that half the materials coming off of construction sites now have to be recycled. Another casino outside Santa Barbara says its taking used cigarette butts and turning them into benches. Not sure i want to sit on them but its a good idea. Butts to benches. Its okaying butts and turning them into benches. Butts for butts. I like it. Better than shag. All right, jane. Who does number two work for . Jane, thank you very much. Would you would back quantas were lufthansa or someone else flying . And another crash, see what happened to joseph newgarden, coming up. When a moment spontaneously turns romantic why pause to take a pill . And why stop what youre doing to find a bathroom . With cialis for daily use, you dont have to plan around either. Its the only daily tablet approved to treat erectile dysfunction so you can be Ready Anytime the moment is right. Plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. 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Continuing our commitment to the next generation of women leaders. When a rewards card is designed to sync with your life it gets talked about. So you can live the way you live, and enjoy all the rewards. Chase sapphire preferred. So you can. Two days ago helio castroneves got inverted. Yesterday, it was josef newgarden. Unlike helio, he did not land wheels up. Luckily,s wa okay. Some are starting to question whether indy cars new aero kits, the funny wings they have might be a factor in some of the cars going airborne so quickly. Theres a big dogfight brewing in the not so friendly skies. Foreign carriers want to fly domestic u. S. Flights but theyre hitting turbulence. We go to phil lebeau. This involves whats called the open skies competition or the agreement amongst airlines in different countries. Essentially it comes down to this. Its not often you get the big three ceos together in one room. They were today in washington, d. C. The big three ceos, united american and delta, theyre complaining that the middle east carriers specifically qatar and emirates and ediha are in violation of the open skies agreement. Its hurting carriers financially and according to the ceos of the u. S. Airlines, theyre being subsidized to the tune of 42 billion. This is about what our nation stands for in the United States which is fair competition. Free of distortion particularly subsidized distortion. This distortion is off the scale. This is orders of magnitude subsidization far beyond anything ive seen in my career. Heres a map showing is the flights to the u. S. From those middle east carriers. Were talking about ediha, qatar and emirates airways. They continue adding flights. They say they are not subsidized subsidized. The u. S. Airlines say they are. This could be settled through intense negotiations in washington and overseas. Back to you. Thanks so much phil lebeau. The markets approaching 3 00 on friday a flat line, the markets its individual stocks making big moves as well as sectors like the utility sector and the Home Building sector. Those are two sectors doing well in todays session as we are here, just to the green on the dow and the s p 500. Yes, we have an hour left in the session. You dont know whats going to happen. We are seeing momentum to the upside. The mark set flat, up 0. 01 . It is up 18,288. Melissa, that would be the alltime record for the dow. 18,288. 18,288. 30, i think it is. Youre like rain man. I am a good driver. In terms of what im doing tonight at 5 00 . Heres one story we didnt get to in this hour, that would be mcdonalds, whether theres an activist investor in it. Were going to discuss mcdonalds as well as netflixs big move to the upside. Definitely listen in while im sitting in traffic on the new jersey turnpike. Thank you. Yes. Big news coming out of boston. Thank you so much for watching. Hope everybody has a wonderful weekend. Including you. You, too, brian. Closing bell starts right now. Good afternoon and welcome to the closing bell, everybody. Im kelly evans, here at the new york stock exchange. Im bill griffeth. Of course we will be covering the markets over the next hour but first, you probably have heard by now the verdict in the penalty phase of the Boston Marathon bombing case is in. However, its going to be a while before we know whether Dzhokhar Tsarnaev gets life or death. Theres a lengthy process to go through, a number of questions to be answered by the jury in this case. Its going to take a while. It will be later in this hour before we know whether he gets life or death. Well bring that to you as soon as it happens. Keeping an eye on markets here in the meantime were closing out the week in which weve seen swings of strong session yesterday. Todays stocks largely holding that but one stock getting absolutely grilled. Pollo loco. Getting killed. The chicken chains fullyear guidance disappointed investors. How much of that outlook has to