the worst performer. what does mickey d's need to do to right the ship? we'll hear from a former franchisee coming up. >> and then we'll talk about the state of the music industry and the effort to turn miami into the next big tech hub with recording artist, pitbull. he will be here from the emerge conference. >> he'll be ringing the closing bell. in the markets right now, simon just mentioned we have a 65 point rally for the dow jones industrial average. the dow was up more than 100 points so clearly off the highs but still pushing higher. building on friday's gains. s&p actually having the best two-day stretch since early february. and then the nasdaq also higher. up about 17 points. >> and joining us on for the "closing bell" exchange, this monday morning we have michael pellegrino pellegrino, and anthony chan from chase, and nancy tangler from arizona trust. and our own rick santelli. welcome to the program. thank you for joining us here on cnbc. j.j., this is good follow through from what we had on friday. >> yeah. absolutely. simon, maybe even taking a -- a little bit of a surprise to the market overall is how we came out all day. europe set the tone. we're challenging this hot all time high on the spx. i think it would be great for the bulls if we can get above 2120 on the spx overall. if you think of the sexy stocks last week, with the twitters the yelps, the linked in gets hit pretty hard. yet, this market continues to be very, very strong. we always seem to get leadership from different areas of the market. overall, people, you know come in and buy the stocks. they have gotten beaten up and it's paid off for them. >> bounced back from biotech obviously. i guess the other thing we should note they haven't fallen anything like what was forecast overall. there are sectors that haven't done so well. anthony chan, the data, if you look towards the end of last week, coming into this week the data seems to be improving. if it's great weather as it is for much of the country do we get an automatic reversal on what we had from the first quarter? >> i think there's no doubt that you're going to get an automatic reversal. the only question is how much of a bounce back are you going to get? so far i'm starting to see good numbers on initial unemployment claims. i think this friday will give you a number on payrolls that's north of 250,000. i'm excited with that favorite indicator that janet yellen looks at, you have seen that jump up. you have seen labor costs starting to pick up. last week's jump in the employment costs in the employment cost index, i think it's just the beginning. we are going to see labor costs accelerating more. that only happens when the economy is getting better. we are going in that direction. >> you know, what do you do michael, what do you tell your clients when you have the biggest names in finance talking about how the market is fairly valued when you have bill gross putting out the recent outlook talking about the end of the secular market. how do you deal with that and how do you address that? >> you know, it's funny. everybody has an opinion. listen to one side of the crowd they're saying, hey, the market is going to keep moving up and the other side is saying this is the end of the party so you need to be concerned. what we have been focusing on is obviously this is a bull market. and as long as that trend is intact, we are going to ride this thing as far as it can go. but one of the things that we're focusing on we are cautiously bullish at gold stone financial group. what we have been doing to help our clients generate some returns in this kind of sideways moving market this year, we have been using a lot of index option spreads to generate consistent returns each month for our clients. we are focusing on the high quality dividend paying stocks. but we inlay a tactical manage approach with computer modeling that will be prepared the next time the market makes the changes in direction and then shift defensively to help our clients move to the sidelines so they don't get hit as hard as they did back in the big corrections we have seen years ago. >> nancy tactically, what are you doing? i know you're looking at sort of the discrepancy between old tech and new tech and digesting the earnings when it comes to capital allocation and cash. what have you gleaned and what are you doing with it? >> well, what some of the guests have already said and what you said at the open, the earnings were much better than expected or estimated by analysts after the oil decline in the fall. bill gross called for dow 10,000 so those provocative calls are not else inially the -- necessarily the way we manage our portfolios. we like old tech. we like it better than new tech because of valuation. and in the market like this valuation matters. dividends matter. dividend increases matter. you are seeing the biggest increases coming from old school tech, like apple and ibm. i hope to see a nice one from sysco soon. >> hang on nancy. forgive me for interrupting there. oftentimes the big tech is paying these raised dividends does not necessarily mean that all is as it may seen. it may be they're trying to make their stock deliberately attractive because they don't have the growth they can boast to the market. >> that's clearly true with ibm. i would argue it's not necessarily true with apple. so that's where you have to be selective. you have to make sure that you have earnings growth and make sure that you have the management team that like oracle if they can't build it potentially they can buy it. >> right. let me bring in rick santelli. the background to all of this of course is that the yields on the ten year continues to rise very steadily. i think we have done -- ten basis points in a week. what is the bigger picture as far as the huge fixed income market is telling us? >> well i still think that the biggest issue with the fixed income market is not really being able to ascertain rich and cheap. looking at bubblicious and some of the yields that have normalized a bit in the southern part of europe acknowledging that we were negative, up to nine years on the euro boon curve as you well know simon. today only the five year. only six, seven, eight, nine have moved into positive territory. so we have cut that in half. i think there's a little angst on the part of investors. there was little reality to some of the rates in europe. but all in all, normalization is most likely going to occur against the back drop of weak growth. no matter how we slice all our guest comments last year we had a negative first quarter and then jumped back. the first two quarters averaged 4.5%. the feds read less than 1% on q-2. there's so much slippage and leakage in the economy from productivity to health care spending that i think the blip in wages is still not going to give us the kind of growth we need and i'm not sure any of the normalization is going to alter that. >> hey simon, i'd like to add something that rick mentioned. we measure how the investors are in the market right now. actually it was at a two-year low and been going down five of the last seven months. a lot of retail investors are actually pulling back on their exposure to the market. you hear about buying when the market is at all-time highs but we're seeing the opposite. i think a lot of people as rick is saying the friday employment report has more focus on it because of that. >> in fairness to the retail investor it is hard but it's their money. if you're in the market as an institution, you're given money to invest. your job is to put it somewhere. >> i can't say i disagree with you on that, simon, overall. but it's interesting to see how the retail investor has kind of changed from from -- they bought something a few months ago, they're selling it off rather than doubling it off or tripling. >> i'm not trying to minimize that. >> mike, where else do you go? you might think that stocks are overvalued but you hear that bonds are i even more. the warnings about high yield are growing louder by the day. if you take money off the table in stocks where do you put it? >> i mean, excellent question. the thing is bonds are a ticking time bomb. especially in the long term durations. what do people use bonds for, the retail investor? they're looking for something more conservative and looking for a consistent yield. i'll tell you right year to date on the option spread strategy for the first quarter we were up 5% versus the s&p at a half a percent. we have been able to generate consistent reliable returns month after month, just using a simple more conservative index option spread to play when we get these pull backs in the market. we're able to set positions on and then when the markets run back up we can take those profits off the table. and then re-evaluate the market conditions and what it's done for our clients is just created a very consistent, reliable return as opposed to looking at the bond market which in our opinion is a ticking time bomb. >> all right. you're not the first to say it. >> on that merry note -- >> we have to leave it there. thank you for weighing in on this monday afternoon on these markets. all right. we have about 50 minutes left to go before the closing bell. as we mentioned off the highs, still chugging higher, building on friday's gape. s&p 500 up seven. and the record closing high would be 2117.69. we were trading above there earlier in the session. as you can see we're right below it, but we have about 50 minutes to go before the close. coming up my highlight of the program. jeff gundlach will speak from the sony conference here in new york. fed policy and where he sees bond yields heading after the fed's first rate hike. and spirit airlines ceo will be joining us from the emerge america's conference in miami. we'll talk about head winds and tail winds affecting the industry, where he sees the oil prices going and what he's expecting from the summer travel season. >> summer, summer. >> we'll be right back on "closing bell." hello. i am technology that is changing investing forever. i am a fully automated investment advisory service. i can help you choose the right portfolio. monitor it. and even rebalance it. i've been called innovative. revolutionary. and just plain smart. i'd blush at the compliment if i could. but i can't. so. i won't. say hello at intelligent.schwab.com this week's cnbc is taking you down to miami where nbcuniversal is the exclusive media partner with emerge. >> it's a start-up tech event expecting 10,000 business owners and industry leaders from across the americas. and it's only in its second year. joining us live from the sunshine state, spirit airlines ceo ben baldanza. good to see you again. >> great to be with you, sara and simon. >> you're not a start-up like a lot of the businesses there, but you have been public since 2011. i guess investors are wondering can you keep growing like a start-up? can you keep posting 30% profit growth? what's the answer to that? >> you know, we'll keep growing and our margins are among the tops in north america. this year in the first quarter we had over 22% margin. as we grow we believe we can maintain high margins. how high is going to depend on fuel prices but we're a growing airline and for the next five years we have a 20% growth rate pretty much locked in and we expect earnings to grow with that. >> you know, ben, people want what they can't have or they want what they have and can't pay for. how do you square the fact that you did very well in the satisfaction tables with running a low cost carrier with high margins? what is the tradeoff there for you? >> well, the tradeoffs are simply that you know, our airline is build differently than others. a lot of airlines try to attract a higher fare paying customer and at spirit we want to give you the lowest total price. we put more seats on the planes than the competitors but everyone can pay a lower fare. we'll separate out things that aren't necessary for the flight and charge extra for those. but at the end, customers only pay for what they care about and the total price is usually about 30% lower than every other airline. >> does the budget that you give an airline determine how punctual it will be? >> can you say that one more time? they spoke up back here at emerge. >> and i have a funny accent. does it determine how punctual you'll be, how many problems you have with the planes? >> we think that reliable counts on two things. how on time the flights are and how often you cancel flights. and at spirit, we cancel fewer flights than almost all of our competition. and our on time is middle of the pack. we think that's a good tradeoff. we'll be average on time but much less likely to be cancelled. the combination of those is if you really want to do you have a better chance on spirit probably than most other airline. >> you mentioned earlier in your response when it comes to your outlook on growth depends on fuel prices. now that crude oil has marched back to $60 a barrel for the first time this year, how do the higher prices impact you and do you think crude has bottomed here? >> higher fuel prices or oil prices ticking up as they are now is a little bit of risk for the industry as a whole. but at spirit we can weather this better because we put more seats on the airlines we have the lowest fuel burn per seat than any other airline in north america. our ticket prices don't need to go up as much as other airlines to cover that fuel. so we can do it quickly, and we can do it completely and our fares can stay low or at least relatively low even at a higher fuel price environment. so we're watching fuel right now. it is ticking up a bit. but we don't think that's going to significantly dampen summer travel. in fact, we're bullish about this summer. >> you can see in realtime, what do you see at the moment, what the consumer is doing, how much the savings in gas is being spent. what are you seeing now? what's happening at the moment? >> well, you know, our planes are very, very full. and we tend to run over -- between 85 and 90% full on all of our flights. that's flying the airplanes 13 hours a day, 365 days a year. our bookings are very very strong. so i'm not sure if it's because there's more money in people's pockets because they're spending less filling up their own car tanks and no they're taking an extra trip. that could be great for us. but we know there's strong demand for really low fares. you know, when we survey customers and the them what's the most important thing about the air travel, most say they want a cheap ticket price. because they'd spend the money where they're going not getting there. >> i know you're primarily domestic so you have a good handle there on the u.s. i want you to address what happened -- the stock price plunged almost 10% after earnings. there's concern that with this fast growth and the aggressive expansion plans you're very ambitious, that it will be costly. can you address those concerns and what do you think of the market reaction lately? >> you know, a lot of the internal consume -- international concerns have been foreign exchange related or they have been europe asia related. we do fly internationally, about 15% of the travel is international. we fly at 20-plus islands in the caribbean, central and south america. but we don't have any foreign exchange issues because most of our tickets are sold in u.s. dollars and we're seeing demand there very very strong. so as we continue to grow, we clearly are going to grow more domestic, but we continue to add international points. in fact, just a few -- just a month ago we announced seven new international destinations out of houston, which will make it the second gateway after down here in florida. >> thanks for joining us on the plans. that's spirit airlines ceo ben baldanza. and be sure to stick around because later in the program we'll be joined by another special guest from the emerge conference, that would be armando christian, better known as pitbull. well we have 40 minutes until we finish trading here. remember 2179 is the record on the s&p. we could be above that. a fresh record in the offing. the dow is up 75. mcdonald's on the dow is the big loser. the ceo is restructuring the fast food giant. >> the customers can't ignore what is being said when the message is clear -- we're not on our game. >> are his changes good enough to right the ship? we'll have a top mcdonald's analyst who is optimistic. and highlights from warren buffett's interview from this morning. it was a humdinger. plus a buffett watcher will weigh in. that's all to come on "closing bell." 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. all of the problems of the world could be settled easily if men were only willing to think. all of the problems of the world all of the inefficiencies could be settled easily all of the opportunities could be realized if we were only willing to see patterns in data we could never see before. to design a machine that thinks like we do. track epidemics. predict breakdowns before they occur. to become smarter every day. if men women machines were only willing to think. dow up 77. let's have a look at some of the movers. dow up 77. let's have a look at the movements. as we get into the final hour of trading. i'm sorry, dom over to you. knock some sense in -- >> long day. >> i knew what you were trying to say. >> i was almost there. >> i know. let's start with shares of lululemon. american eagle, also urban outfitters all higher today. this after rbcn was rated the -- and they're up. bank of america is allowing the ceo to become the chairman of the company as well. last fall the board overturned a post financial rule requiring that the two jobs be held by separate team. you can see those shares are up. easterbrook plans to sell restaurants to franchisees, and following the announcement mcdonald's was downgraded. so mcdonald's, you can see they're down by about 1 and 1/3%. >> yeah, we have been watching it all day. we'll pick it up there. because is that enough to revive the iconic prapdz? >> joining us now is a former mcdonald's franchisee who owned two stores for more than 30 years. welcome to the program. >> thank you. >> what did you think of what easterbrook said today in the way he presented himself to the company on that video? >> i think that mr. easterbrook is sincere, but he's missing the point. it needs a culture change. the company needs to start listening to the franchisees and listening to the crew instead of piling on debt, stealing equity and taking away the financial resources of the franchisees. those are the ones who have made the system great. those are the ones who work with the customers and the crew on a day to day basis and they have been entirely left out of this equation. selling 700 stores -- selling company stores to franchisees while selling 700 other stores makes no sense. why not sell the stores that the company owns instead and leave the franchisees in business. >> right. that is part of the plan here to get up to about 90% franchise owned stores. and just in the interest of full disclosure tell us about your experience as a franchise owner of mcdonald's and why you are no longer one. >> well, i'd love to. actually i started out as a kid, my dad was a realtor with ray crock. and ray asked my dad to become a franchisee. then when my husband and i got out of college, we got into the business and became franchisees, opening two stores. but we asked critical questions and suggested some culture changes and so the company decided that it would throw us out. it cancelled our franchise and the lease at our mall store. not renewing it, rather. and so a $2 million, 30-year-old business closed and was shuttered and 30 employees were let go. as a result -- >> i'm sorry. >> we sold the other store. >> okay mcdonald's isn't here to defend itself against that. it sounds quite troubling. i mean, in general terms what do you think the atmosphere is like with the franchisees at the moment? they're not happy with the menu. obviously they're not happy with the additional costs that may come through and they'd love i'm sure to believe again not least because i believe mcdonald's actually owns the property on which these franchisees sit so they can't convert to something else. to a different brand. we had somebody suggest still mcdonald's franchisees make more than the competitors. it's still a profitable business to be in, correct? >> it's not as profitable as it used to be. we were making a lot less money with a lot higher sales at the end of our tenure than we ever had in the past. mcdonald's as i said is shifting costs on to franchisees. they are taking the equity from the stores and yes, they generally own the land and building or control the lease. right now, what they are doing is if you have a store that is say over 25 years old, they are forcing the franchisee if you want to stay in the system to spend upwards of $2 million to rebuild it. that's the franchisees' money going into the building and the land. that's putting huge debt on the franchisees and it makes it so that they can't make much in the way of money. in fact the morale of the franchisees is at the lowest ever. >> all right, hang on one moment because we want to bring a different perspective and view into this conversation. joining us now by phone is david palmer, managing director and analyst at rbc cap markets, has an out perform rating on mcdonald's stock. is there anything in the turn around plan that you found appealing? clearly, investors weren't that excited about it. but the stock is clearly up. >> yeah, there are a few different facets of the plan. they have a new organizational structure that will help them focus on the market. it's an 80/20 rule and they generate 80% of the market. one of those is the u.s. but that's markets outside of the u.s. like australia, canada, france, germany and the u.k. that represent a tremendous portion of the profit and the company is going to focus on those. the company is going to refranchise and there's going to be a return of capital of shareholders. overall, this plan was in line with what we had thought. the overhead reductions were higher than what we had modeled, but as far as the refranchising goes and the step up in leverage in the near term it was pretty much in line. so i think the market is saying ho-hum about it. >> it was baked in. yeah. >> but -- would you expect -- would you expect the stock to rally on what easterbrook said today or in your analysis of what he's saying or do you wait until you see it filter through to the hard sales numbers? once the sales numbers turn around that's proof positive. one doesn't fully understand what is in the pipe line. >> you know, most -- the most important thing for mcdonald's is the sales. and that is one insight you get from model the company. you could have the overhead reductions and that gets you 15 or 20 cents but the big money can come from structure change, like the refranchise in a big way. and to the franchisees' point they need to find win/wins overall and that's simplification of the menu. also quality upgrades and value. they talked about doing a national value tier this summer. that's something that we find very intriguing because we all know that the dollar menu coincided with a huge boost in sales over a decade. so we have a lot yet to see here from mcdonald's. we have going into the key summer selling season soon. >> and we have an exfranchisee and as you hear david, he talk about the stock and what the company needs to do to turn around, what do you think mcdonald's needs to do the new ceo he's just been there since march 1, steve easterbrook needs to do to improve the relationship which is so key for this company with its franchisees. >> i think what was said earlier is fine but that's good for the short term. what needs to happen is some real term cultural fixes in working with the franchisees and the crew. and looking at how much it costs, what the initiatives cost and how to target the money into local issues with people instead of going for these national things. these are all short term fixes and until they can fix the relationship with the franchisees and rebuild the trust that went away decades ago, they will continue to be flailing around. it is the trust with the crew and the customers and the franchisees that they need to rebuild. >> all right. thanks for joining us. katherine slater carter who used to be a mcdonald's franchisees and the stock is gotting hit. down more than 1% today. >> 28 minutes until we close today. a news update with sue herera. chris christie's former top appointee at the port authority is speak out on bridgegate. bill baroni said he was innocent of the charges to close the lanes around the george washington bridge in 2013. he spoke after his arraignment today in federal. he and bridget anne kelly are free on bail. the department of transportation says airlines collected $3.5 billion in bag fees a last year. an increase of 5%. airlines collected another $3 billion in reservation change fees. lowe's has stopped selling some of the chinese made flooring. they said it was out of an abundance of caution, end quote. a financial blogger said it may have some of the formaldehyde issues that hit lumber liquidators. talk about a lot of candles. our country's oldest living veteran turned 109. richard overton marked the milestone in austin texas, yesterday. he's seen two world wars, 11 presidents. he says he still enjoys smoking small cigars and drinking whiskey. and he still drives. not after drinking whiskey. he received a letter from the president to mark the occasion. happy birthday. now back to sara and simon. >> i love that story. >> nice. >> thank you. >> whiskey and cigars. >> less than half an hour before the closing bell. and we've got a rally and we're in fact in record territory at least on the s&p 500. around that closing high 2117.69 is the level to watch. and the dow is still about 1% away from its record high. when warren buffett speaks wall street and the rest of the world listens. up next highlights from that humdinger of an interview with becky quick. the oracle of omaha, along with reaction from a top buffett watcher. also, jeffrey gundlach and he'll talk about the fed policy. i hope the dollar and a lot more. later, as if that wasn't enough, grammy winner pitbull will be with us from the emerge america conference. find out why he wants to turn miami into the next tech hub. ♪ all right. heading into the "closing bell," over 20 minute to goes. we have a rally, the dow is up 66 points. we're watching that s&p level. will we close at a new high? 2117.69 is the level. >> warren buffett was on the network talking about valuation, ibm and the other investments with our own becky quick. becky has these highlights. >> the biggest question most have of warren buffett what he thinks of the stock market overall? every once in a while he has called a topper or a bottom. it's much murkier and that's because it depends on what happens to the interest rates. >> the market against normal interest rates is on a high side of valuation. not dangerously high, but on the high side of valuation. on the other hand, if these interest rates were to continue for ten years, stocks would be extremely cheap now. and one thing you can say is stocks are cheaper than bonds. >> that's the $64 trillion question, what will happen to interest rates? buffett says that that is just too tough to figure out right now. in fact, he says he's been wrong to this point, because rates have stayed much lower and much longer than he expected. while activist investors have gotten more aggressive, he said his companies are safe. >> when we have 15% of american express or 9% of coke or 10% of wells fargo, i think it would be very silly for an activist to come in and say, you know double your dividend today or buy on a whole or lot more stock or what they were proposing. i think the companies are well run and i think their financial policies are sound. if you have a well-run company, the best thing to do is sit back and enjoy it. >> that's exactly what buffett plans to do. sara and simon? >> all right, thank you very much. becky out of omaha. joining us with his thoughts on buffett's comments and investments, scott rothport from lake view. you no longer own shares of berkshire hathaway, but do invest in a lot of stocks that buffett and berkshire own. >> we don't have the berkshire stock right now. >> do you have any of the stocks in question, ibm, coca-cola, american expressn't that do have the greatest sentiment, but warren buffett believes in them and he backs them and in the case of ibm he's buying more shares. >> we do have some of the warren buffett stocks or warren buffett like stocks in the dividend oriented portfolio. none in the growth oriented portfolio. what i look at what warren buffett has done over the years no doubt he's the quintessential value investor of our time. i don't think that value is the place to be. we're looking more for growth and to some extent because of the low dividend rates, low interest rates i'm sorry, we're looking at stocks that can pay dividends above that of the average s&p yield or of similar yields on government bonds. >> i mean, he's unrepen department. he didn't buy apple but ibm. there's nothing wrong with that but to some it would raise eyebrows. >> to some it would. he's looking for companies that are going to generate huge amount of cash, and of course apple does generate a huge amount of cash. i think what warren buffett has done, he's transformed without people understanding some of that, he's transformed berkshire hathaway from a value oriented company to now he's become the largest private equity firm in the world. we see it with the deals he's done recently. such as kraft. burger king, burlington northern. he's able to not only go out and buy large companies that generate this cash flow that are valuable, but he's able to partner up with other people and because the amount of capital that he controls he exacts a very good price when he does want to buy something. >> and he came under some fire for 3-g of course along that line. let me ask you on the central assertion about the markets, if interest rates normalize, the markets look more expensive. but if they stay at this level for ten years the stocks look amazingly cheap. where does that analysis take us? >> it's not the if interest rates go up, but when. that's his key analysis. we know the path of least resistance is upward for interest rates. when that happens we don't know. the extent to which the long end of the curve mores more than the short end of the curve. personally the way i'm valuing the market i don't see them rising to the extend that bonds back more valuable to investors over stocks until we have at least gone up over a hundred basis points and i don't see that happening until 2017 at the earliest. >> he's talking about a normalization of interest rates, to the point you're making there. >> that's correct. besides being up -- a professional portfolio manager i'm also a professor at seton hall university. that's what we teach. we look at the whole yield curve. we want to see how parts of the yield curve relate to each other. i don't see us getting to the point where the yield curve moves to the extent that stocks are no longer in demand over other bonds. >> good to see you. thanks for weighing in on the buffett thoughts. everybody in the market has a view when it comes to buffett. >> but not everybody is buffett. >> scott rothport. less than 15 minutes to go. >> yeah. s&p, 117 and change. that's what we thought we were headed for, but not going to make it. >> well we've got more than 15 minutes to go. >> anything can happen in the last 15 minutes. >> correct. the ten year yield is -- and jeffrey gundlach got it right last year. find out where he thinks the stocks are heading now and if he thinks we hit the market. heading into the close, the dow up a little less than 60 points. mcdonald's at the bottom of the dow. in terms of your -- unveiling it turn around plan in the video presentation this morning. steve easterbrook the new ceo talking about moves he'll make. at the top of the dow is j.p. morgan and the financials are the best performers followed by byby utility, material and energy are the laggards. health care's up. >> moving stocks throughout the session, don chu has more. >> so we're a couple points away from the record high close in the s&p as well. a lot of media companies earnings. comcast, better than expected first quarter profits. driven by strong growth in the high speed services. comcast is the parent company of cnbc. and cablevision rallied and the subscriber numbers did fall across the segments compared with a year ago. and the amc networks reported a quarterly profit above estimates as strong demand boosted ad sales in the domestic business overall. we have those moving today and all the big reports coming after the bell as well. >> thank you very much. 11 minutes to go. we are up 52 points on the dow. >> as he said, a few points away from a record close on the s&p 500. we have backed away with a point or two. up next, jeffrey gundlach sounding off on the bond market and at the dollar and a whole lot more. we'll bring you that in a few moments. sal khan: khan academy is a not-for-profit, with a mission of providing a free world-class education for anyone anywhere. if you look at a khan academy video, they can cover everything from basic arithmetic to calculus, trigonometry, finance. you can really just get what you need at your own pace. and so, bank of america came and reached out to us and said 'we are really interested in making sure that everyone really understands personal finance.' and we're like 'well, we're already doing that.' and so it was kind of a perfect match. earlier today we were up 110 points on the dow. we have been seesawing throughout the session, but cutting some of the gains as we come towards the close now. eight minute away. remember the record we were trying to achieve on the s&p 500, that was the record close, so bob, what's happening? >> so my general feeling is the path of least resistance is still higher. what was the two biggest impediments in the first quarter, weak oil and the strong dollar. those have both kind of turned around now in the second quarter. i know the earnings are weak and they're flat, but i don't any you'll have a big stock market drop because you have weak earnings. when that strong dollar and the weak oil starts to moderate. >> we have a big clue when it comes to friday. on the jobs report it will be new data from april. we'll see how transitory that slump was in the first quarter, right? >> it should be transitory. i mean, we have every indication that's giving us that. depending on whose numbers you look for the job number ubs suggesting that it could be ratcheting down the unemployment numbers the market is in the process of digesting today. the bad news is good news. the good news is that china led to the rally because of the anticipation they'd have to ease. and the germans said it was too strong quantitative -- >> i can't believe i used the word transitory. that's what the fed says about this recovery. >> you're a fed head. you have turned into one. >> i guess we all are. like a deadhead. >> we have -- no no we have to take a quick break and continue after that. otherwise, you won't get the commercials in before the top of the hour. >> very good. i'm so confused. >> we'll be back with six minutes to trade. after the bell don't miss the latest reading on underwater mortgages and what it says about the health of the real estate market. plus the avengers sequel failing up to live up to the much hyped box office estimates. and grammy winner pitbull will be joining us, and that's live at the emerge conference in miami. 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. doug. you've been staring at that for awhile, huh? listen, td ameritrade has former floor traders to help walk you through that complex trade. so you'll be confident enough to do what you want. i'll pull up their number. blammo. let's get those guys on the horn. oooo looks like it is time to upgrade your phone, douglass. for all the confidence you need. td ameritrade. you got this. 40% of the streetlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money. it's a brighter day in detroit. people can see better when they're out doing their tasks, young people are moving back in town the kids are feeling safer while they walk to school. and folks are making investments and the community is moving forward. 40% of the lights were out, but they're not out for long.they're coming back. three minutes to trade. we were hoping we'd get a record high but we thought we might close above that but unless we have a final push, looking unlikely at this stage. so ben, before the break you were talking about how about ubs on friday for the payrolls report was suggesting 265, that unemployment would fall. >> correct. >> isn't that a nightmare figure for us because it means the fed might move in july? >> i can only hope that happens because the correction that cnbc was discussing all day long will be a good thing an a benefit to the investor still on the sideline for an opportunity to buy into the bull market. >> if you have a good payroll number -- >> if it dips on that number absolutely. be there to buy it. i think -- >> interesting. >> you want to get excited about something besides that, how about the wage inflation number. if we start seeing notable pulls up on friday -- >> so on the employment costs. >> absolutely. i would look to that right now. there are people -- i think the average 220,000 is what we're ping for nonfarm payrolls. if you're talking about 3% wage inflation as you get close you'll start to see people moving. i think i might agree with you. i'm not so sure it will be a disaster. people will few that negatively. >> and what about the bond market? people are worried about the temper tantrums. >> the temper tantrums are happening in europe. we have been looking at the u.s. treasury market. we had so in in flows that's kept this bubble inflated since the fed started it. i think the pressure in the pop will come from the german bundz. >> i can't believe you say buy on friday. >> because that's the indication of the health of the any which is why you own stocks. >> what if the rates spike higher? don't you have implications, like boom boom boom. >> what happened when the market sold off? we were buying in the central banks. >> that's why they'll raise it once 25 basis points and say they're done. i think their concern is what you're talk about. >> thank you very much. "closing bell" continues with sara eisen and simon hobbs. [ bell rings ] welcome to "closing bell." check out the screen on your right. the nasdaq closing bell. that's musician pitbull at the emerge conference in miami along with our own cnbc president mike kaufman and melissa lee in the front row as well. a big party in -- in miami where they're ringing the closing bell at the nasdaq for the emerge america start-ups and all sorts of local businesses. i'm sara eisen in for kelly evans. simon hobbs will be back in a moment. let's look at how we're finishing on wall street. the dow did close with a gain of about 47 points. off the highs of the day. still higher across the board. s&p 500 up a little over six, did not manage to close at a new record high. but we're not too far away from that. the nasdaq good for a gain of about 11.5 points. and our own john ford great to have him here. and for more on the market action is kenny polcari from o'neal securities. i guess we'll get to him in a moment. a second year in a row of gains. friday's gains feels like the path of resistance is higher. we didn't get a major catalyst in terms of earnings reports today is so it the -- so is it the story in -- >> i think the story is the bond markets and we have seen bond yields rise at the long end. meaning the 30 year quite considerably. today, you had in addition to bill gross you had warren buffett come out and leon cooperman. they all said guess what's a bad deal? bad deal is buying u.s. treasury especially the longer term u.s. treasuries that's a bet i made a year ago, been a losing bet up until now. i think yields are going higher. >> 214 is where the -- >> that's the ten year. the ten year what you have seen actually is a steepening. so the 30 year is up almost at 2 2 -- 288 and 289. when it goes over 3% that's a big deal. >> you'll hear from jeffrey gundlach on the economy and the fed in a moment here. but sysco is a big mover. got the surprising announcement of the next ceo. >> i don't know if it moves around that much. it is a surprising announcement because this isn't one of the names that we expected to be named ceo. rob lloyd who headed sales for a long time was one of the names you might expect. padma warrior who came over from motorola. patell here is a guy cut from the mold of john chambers himself. taking over and with chambers still there as executive chairman you wonder how much a new ceo that came up through the company is able to make big changes if big changes are needed. how much can he cover the blind spots that the organization has developed over time? so we'll see, but a few people are scratching their heads for sure. >> well, investors bought the stock today. we want to go to this, because it marks the 20th annual sohn conference in new york where the best ideas are presented. >> and gil wapner has been reporting throughout the day. he joins us now with a special guest. scott, over to you. >> simon, thank you very much. i'm sitting here with jeffrey gundlach. he likes to be make a statement as much for the colors of his suit as the colors on the market. thanks to see you again. you have made a pretty big call here. you think rates have bottomed. >> i have been saying that for a few years now. since it's working i'm sticking with it. there are people who say this could be one more flush down in rates. i'm open to that idea. but when i look at the trading pattern of the market it looks like the odds are better the two-year in the bottom -- but the three-year -- and below yield in january which put us on high alert. maybe things would start to break down again. but i think the fed blinked on talking about the dollar. and that kind of took tightening a little bit away. long end of the bond market wants the fed to tighten. that's the message for the last year and a half. every time the fed talks more hawkishly, weirdly some people think, but every single time the fed goes on a tightening cycle the yield curve goes flat. sometimes it takes a few years but always happens and the fed really has started to tighten with qe. once again the rates fell. so now the proof has been steepening. that's sort of indicating that the fed is not going to raise interest rates this year. >> i was going to say, does anybody -- any investor want the fed to start tightening interest rates? >> long bonds do. i think the u.s. bond market believes if the fed raises rates three or four times this year, they would have had to reverse rates and something bad will happen. i did a webcast, and people said, oh you're calling the fed a block head. i said no, i'm not. if they raise the rates three times they're a block head. there was a game called block head, you had three turns. you put blocks together and if they fell down on you three times you were a block head and you were out of the game. they raise the rates three times this year, i would have thought it was a mistake. but they're not going to do that. >> there are plenty who want the fed to raise rates but the getting is so good for the equity investor that the sentiment is lower for longer if not longer than anyone really imagines. so june is off the table? >> i think. if you told me to give you a probability of june i would say how many decimal points that you want, and you said four, it's 0.00001. >> why do you think you think they'll move -- >> i think the data won't corroborate that. the feel of the market is that the fed has a little change of attitude. the market seems to feel like it's saying, the fed is okay with the couple quarters that are a little hot. because they don't want to happen to them is what happened in some other developed central banks where they raised rates 11 or 12. only to reverse them like sweden. rates were down near 0 and then they raised them at 2 and now they're in negative. so the fed has a conundrum. do you risk having zero rates entering a weak economy and what do you? or if you raise rates do you have to reverse the course? that's no good option. >> you remain particularly concerned about the high yield market. >> not imminently, i own many more high yield bonds than 17 months ago. i owned zero in 2014. we started to build after the position. but i think a couple years from now there could be real problems. i advise investors to sell on strength but to be relaxed owning them for now. i expect this year to end kind of where it started. as it comes to most markets including interest rate markets. i think the trade by owning credit i think it's working thisserthis year. and trading what i think is a range bound interest rate market for this year. >> if there's a risk worst taking i think is the way you put it puerto rican muni bonds. >> yeah, i think they'll go lower. the geos are the most attractive because they're triple tax free. they have an "a" coupon and you can buy them around 78. which is a totally tax field yield of 11%. for us in california with a 53% combined tax rate is a analogy it's okay to start buying them. i expect it to go lower and just average it. build a position over time. i would be surprised if they don't dropped but i think they'll make it either to the goal line which would be a fantastic outcome or a restructuring. i think you'll get a high value. they're long maturities so you can't get burned on maturity extension. >> so if interest rates have bottomed, you think the dollar is going to continue to go up. are you short the euro? >> no, i was bullish on the dollar. i made a call last june. once it started to stall out and when the fed blinked an mentioned the dollar, i became negative on the dollar. i'm short term negative on the dollar but not very. i was looking for 93 it was at 100, it went to 94. for a long term position i still like the dollar. if it's only if you're trying to be cute. right now it's fallen enough where i don't have a strong view in the short term. but i believe the dollar will get stronger for a couple of years. so currency trends last about ten years and the dollar bottomed around '08. really kind of bottomed in '11. somewhere 2018, my investment thesis is very much tied to the world being very different in 2018 '19 for demographic reasons, for deficit reasons. if they are already bought they'll create some stresses. i'm focused on those dates. i think the dollar strength may turn out to be problematic at times too. >> i appreciate you spending some time with us as always. >> thanks. >> the pleasure is ours. jeffrey gundlach. guys back to you. >> sticking with the long term dollar view at least strength in many many years, jeffrey gundlach, thanks to you. up next striking new data on the housing market. the delinquency rate and percentage of underwater borrowers plunging but it's not all good news. that's straight ahead. then we'll talk about the state of -- this is going to cheer you up. we'll talk about the state of the recording music with artist pitbull. we're first in business worldwide. thank you for being a sailor, and my daddy. thank you mom, for protecting my future. thank you for being my hero and my dad. military families are thankful for many things. the legacy of usaa auto insurance could be one of them. our world-class service earned usaa the top spot in a study of the most recommended large companies in america. if you're current or former military or their family, see if you're eligible to get an auto insurance quote. the emerge america's conference in miami is underway. we have been covering it all day. nbcuniversal is the media partner where investors and industry leaders are coming together today. >> and it's not just business owners and tech innovator there, emerge is drawing some big names from the entertainment business. melissa lee joins us from miami with the very special guest. melissa? >> thank you, guys, so much. armando christian perez, most of you know him as pitbull. armando, great to have you with us. >> it's great to be here. amazing opportunity and an amazing event. >> it's funny because we introed by saying this is a meetup of leaders and et cetera but you're a business person. how do you think of the pitbull brand? because you're in so many different areas. i don't think many people realize you have a vodka, got a fragrance line. you have sponsorships with various companies. >> we have a franchise, miami grill. what we try to do is create our own portfolio within our own business. i would say our own platform. a lot of people don't know it and that's allow -- to fly under the radar and make educated decisions and to be part of the innovators of an an amazing event like emerge. two people from miami said, look, this is the best platform to one of the most amazing cultures i would say stepping into the americas and the world. being the latin culture. so it's -- i have no words for it other than saying it's a true honor. >> i think a lot of people who are watching that closing bell ceremony might have been surprised when manny who is the founder of this conference specifically brought you up, to my very good friend who's been instrumental in this conference. why this conference, and what do you get out of it as a brand? >> i love to see growth so to be able to see people who have knocked on so many doors, no won't work, don't do it that's impossible. and if you give them a platform where they can come here and have actually people that have been on that side before including myself in the music business. it happens to me every time. every time i put out a record it's never as good as the last record per se until you work it. to be part of it with manny medina, with medina capital and emerge, watch it grow what better place than to do it in a place i will have, miami 305. >> mr. worldwide at this point, we should say. >> a workaholic. >> when you're thinking about business opportunities, i mean this is something that didn't just come after you made money. this is something you thought about the whole way through. >> you know, i always say it's never about the money, but it's about the journey. what you learn on the way is what's priceless. anybody here -- you guys have an amazing channel, so many entrepreneurs an billionaires and gazillion airs. and when we leave here we can't take it with us. it's who we can help on the way up, and enjoy the journey that's what i love about it and what i love about emerge. that's why i say it's an amazing opportunity to have this conversation with you, because from my background, it wasn't supposed to happen. >> right. let's talk about what you have coming up. you have a sirius xm channel launching this month. you're going to kick it off in new york at the famed theater. why sirius? >> they've always been innovator and people said they didn't what they were doing and in turn they knocked it out of the park. to have our own channel there which is called globalization, it was about making history. we make history like sirius and at the apollo theater. so it will be an amazing night. more than anything it will be an amazing channel with an amazing company. i think we'll have another conversation about it. >> i hope we will. in terms of the changing of the music industry is having a channel on sirius is that a way to make money or is the music a vehicle for making money in other ways and other investments in your brand? >> the thing about the music business it makes every other business money except itself to a certain extent. now it's finding ways on how to monetize things and the music business made a big mistake when they didn't partner up with jobs may he rest in peace. and now you have spotify and pandora and congratulations to jay z for what he's doing right now. people are starting to figure out how important and what an asset music is to technology and the business as a whole. so that's the way i look at it. my product, you can't make my product. they can't make my product. they can't code it or patent it. >> should your product be free and you sell other things around your product -- >> that's the thing, i can keep producing. if it's for free or monetized, it will lead us to an amazing business which is what it's starting to do now. >> you're not worried about that -- >> i'm not worried about that. a person who worries about that is the producers in the record business and they should. jay z can carry whole company on his back why? he has confidence in himself on what he's producing. so it's exciting times. and that's what i mean to have these kind of conversations. >> what's the next big investment for you, armando? outside of music what is the next thing for you? >> i always tell people my biggest investment and they try to break down what kind of -- you know, what we'll generate, what percentages with we'll make, i'm my biggest investment. as long as we keep this one going, everything else will continue to grow around it. one way or another. when i say i, i mean we. i can't do this without a team, no way shape or form. >> are you an investor in the stock market? what does your portfolio look like? >> the stock market is something my grandmother told me very young, never play with the stock market. so i'm very very careful on what i do and don't do with it. it can become something very interesting very quick. i'm sorry, i don't know what happened with that. >> all right. >> don't want to be a part of that. >> stick to the music business. thank you. armando christian perez, otherwise known as pitbull. sara and simon? >> thank you. that was fun. melissa lee from miami. we enjoyed that. guys did you know he's -- mr. pitbull is very popular with potential presidential candidates. jeb bush was asked who he would bring to the baseball game? he said teddy roosevelt and pitbull. >> i thought it was interesting that he called out jay z and title positively. a number of artists have criticized the prices that jay z was trying to charge for a title subscription, 10 and 20 bucks per month. but he said that -- he said that the music industry should have partnered more with jobs and should have bought napster. i guess pitbull at 34 years old has a different generational perspective on some of these things than others who criticized jay z. >> i'm puzzled by the vodka thing. >> you're not going to buy the fragrance? >> everyone has a vodka. sammy hagar he had a vodka. >> it is vertical integration -- >> it's a lifestyle brand. >> simon listens as the disco discotheques as he would say. >> they don't have discos in europe. >> they only call it in europe. we have a lot more ahead from the emerge america's conference. don't miss united states chief technology officer megan smith. that's coming up on "fast money" at 5:00 p.m. very interesting they have the ctt of the u.s. and "avengers" had the second biggest domestic opening in history. >> why are some box office watchers disappointed with that? that's later on "closing bell." [ male announcer ] whether it takes 200,000 parts ♪ ♪ 800,000 hours of supercomputing time 3 million lines of code, 40,000 sets of eyes, or a million sleepless nights. whether it's building the world's most advanced satellite, the space station, or the next leap in unmanned systems. at boeing, one thing never changes. our passion to make it real. ♪ ♪ ♪ ♪ call 1-800-royal caribbean or your travel agent today. new data on foreclosures delinquencies and underwater mortgages shows a startling economic divide in this country. >> diana glick in with the details. >> hi, sara, some good news, but not if you live in a cheaper house. they no longer owe more than the house is worth, and now this does not mean they have a ton of home equity or even enough to move to another house. but at least they're in positive which makes them less likely to fall behind on their loans and go into foreclosure. on the other hand just over 4 million borrowers or 8% of homeowners with a mortgage are still drowning in negative equity. that is 30% fewer than a year ago. but negative equity is a leading cause of mortgage delinquency and foreclosure. more than two-thirds of borrowers in foreclosure are in a negative equity position. so now to the bigger problem. home values are rising more among already higher priced homes. lower priced homes are not seeing those big gains and that's why borrowers whose homes fall into the lowest 20% of home values, get this they're nine times more likely to be underwater than those in the top fifth of the housing market. all right, so what does this say about the housing recovery? it's been easier and faster for those with higher priced homes to begin with. those with lower priced homes who have the least financial flexibility they are still struggling. >> all right. some sobering news there. i guess. thank you very much. time now for the cnbc update with sue herera. >> new testimony today at the trial of james holmes accused of the deadly colorado movie theater shooting back in 2012. one witness told jurors how phone records indicate that holmes call an area hospital moments before the shooting but he didn't say anything. another witness testified about seeing holmes at a gun range days before the shooting. holmes is killed with a dozen people. and president obama helped launch a foundation today that will work with men of color across the country to improve their education training and job placement. it's called my brother's keeper allowance and an off shoot of a similar federal program. they have received $80 million. general motors will invest in its fairfax plant in kansas city to make it the new home of the 2016 malibu. production is slated to begin at the plant a little later this year. gm says no new jobs though will be added at that plant. and check your calendar, it's may the 4th. it's a big deal for "star wars" fans as in may the 4th be with you, and some of the biggest fans are really out of this world. check out this photo from the international space station. with the tweet, the force is strong with them and in honor of the day the crew watched episode three, "revenge of the sixth." back to the "closing bell." going to see the new movie? >> oh, for sure. and the new "avengers" which i should have done this weekend. >> well, there were long lines. it was the end of the era for sysco. john chambers will be stepping down in july after running the equipment network maker for 20 years. we'll discuss if the shakeup is good or bad for the shareholder shareholders. and the republican field gets broader by the day. do either have a real shot and who could be next to announce? that's later on "closing bell." ♪ ♪ ♪ 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, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step. welcome back to "closing bell." let's send it over to dom for quick market flash. so jeffrey smith is reporting an 8% stake, 8.2% stake in brinks. that's as of april 22. now the shares were undervalued that's why they were taken. but brinks this is the same company that yes, you know, provides the armored car services or business and industrial alarm and security services. it's a $1.1 billion market cap company and again, jeffrey smith, starboard value, taking the 8.2% stake in brinks. guys, back over to you. >> yep, you see the spike in after hours. thanks for sharing. big news today in the tech world. cisco systems long-time ceo john chambers will be stepping down in july. and it is up sharply though, since he took the helm in the '90s. what challenges will the new ceo be facing? >> don morgan is a major shareholder of cisco with over 1 million shares. down here at the new york stock exchange, our panel is joining us. what did you think of the news today and the unexpected appointment of the successor? >> well i mean it wasn't too crazy. i mean we all kind of knew they were going to pick somebody from inside the cisco family. it was a question of who they'd come up with. i believe chuck robbins has been at the company since 1997. he was there when the stock peaked back in march of 2000. 80 bucks. and he's been through the whole cycle with john chambers. so it wasn't too big of a surprise. we didn't expect him to pull someone like meg whitman over there or something like that. >> i have a question for you, jon fortt. chambers has been leading the company since 1995. a lot has happened since then including the tech boom. the tech bust. i mean how different is cisco now as a company in its business than it was in 1995? >> oh, my goodness, dramatically different than in 1995. part of chambers' stump speech he likes to give at the events and elsewhere is how well the company has done at navigating what he calls market transitions. and there have been several. the routing and switching business that they have gotten into, now they're in the data center era. they have moved into this era of the data center reasonably well. they started to sell servers a few years back and they have gained a lot of share in the department. but their core business is still declining, it's not the -- the other businesses that they're building up don't have high enough margin and growth to make up for that. i think the big question is how far away is chambers really stepping when he's executive chairman? he's been there the entire time that chuck robbins has been from when robbins was practically a kid. none of the stronger executives -- i shouldn't say stronger executives, longer tenured executives like a rob lloyd did get this position. so if chuck robbins wants to go against something, undo something that chambers did how is that going to go with a board that was so strongly in chambers' corner? >> given what jon just said with the analysis he brings to the table, dan, does cisco need a new groom? >> that's the big question. you know i kind of -- you kind of brought up some interesting things. you know the stock hasn't really done that well since the tech bubble. i mean i mentioned it peaked at $80 back in march of 2000. it's gone you know down and then kind of flat lined since then. you know, as john was mentioning, they tried to make some transitions out of that core switching and innette work -- and networking business. gotten into security and other things. and they're a monster acquirer. i mean they made a living off of acquiring smaller companies but, you know they don't have that catalyst that i think the street is looking for like we saw with microsoft, with their azure and office 365 business. you have ows over at amazon. they don't have anything to trade on other than what we already know. like you said, simon do they need to kind of change what they're doing to really get the growth back and get the stock up, you know, where it was back in 2000 and hikegher? >> they did just have a good quarter. >> i find the case study of john chambers to be fascinating. this company you may not remember was the most highly valued company in the world. >> yes, we remember. >> back in 2000 some of your audience may not remember simon. in any case, john chambers was the hero of the internet boom. i mean he was on the front page of every business publication. he was treated as the hero ceo, the guy who could do no wrong. and then kind of his reputation and everything kind of went up -- my point is i think investors out there tend to place too much stock in ceos and he's a classic example of that. >> do you think he has trouble letting go given where he's come from? >> yes, he has trouble letting go. i don't i this his reputation went up. i don't think he achieved the titan like status he had in 1999. but i think the market doubted him during the bust. he brought cisco back to a really high level of profitability. even though the multiple never returned to where it was. and then there are people who had doubted cisco as recently as a year ago and the stock has had a nice run since then. but i think the question is in the cloud era we are seeing more influence among the titans of cloud. microsoft, amazon. facebook that are really starting to have so much clout in the data center, they can move the equipment makers around. facebook is starting to really push its own networking equipment designs. y0u7, i'm hearing from some -- you know i'm hearing that cisco is working with them on that to some extent. if the balance of power shifts away from cisco is the new ceo going to be able to get the reins back? >> i think the point is he's a survivor. look at the competitors, world com -- >> but it's got to be more than survival. >> thanks jon and evan and dan morgan. thank you for weighing in. don't miss the cnbc interview with the outgoing ceo himself. john chambers, tomorrow 9:35 a.m. on "squawk on the street." >> meanwhile, "avengers: age of ultron" ranking in the millions over the weekend but that fell short of the first film. which some would argue is better some are blaming the mayweather/pacquiao fight for the low numbers. it's been nearly a year since you could in fact in vernon davis of the fan tech's exchange. he has he delivered good returns? vernon davis and the ceo are here later on "closing bell." honey, we need to talk. we do? i took the trash out. i know. and thank you so much for that. i think we should get a medicare supplement insurance plan. right now? 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[ male announcer ] don't wait. call today to request your free decision guide and find the aarp medicare supplement plan to go the distance with you. go long. tons of headlines flooding the dotcom desk today. you have been wondering today who made it over to hot list. over to allen wastler for the answer. >> as you know, we had so many out of the sohn conference. all the activist investors, that i all communed the biggest -- they all communed the biggest ideas. we swept them into the live blog. you have jeff gundlach in there, leon cooperman with the bonds are undervalued thing. you have the frac attack from einhorn. that's getting all the attention. we had jeff cox look at the etf flows lately and for first time ever, mom and pop are putting more money into etfs than they usually do into mutual funds. okay, now, there's still a lot more money in mutual funds than there are in etfs but some are saying this is a start of a trend. you never know. finally "the avengers" have been kicking it all day. it came in at $187 million for the weekend, second only to the first "avengers" back in 2012. of course, it faced stiff competition, you had the mayweather fight. all sorts of playoff matches, the kentucky derby, you had great weather. a lot of people are saying you shouldn't read too much into that. anyway, "avengers" seems to be popular. i think people are looking at the film clips and the pictures. >> i don't know who's complaining about that. the second best opening ever. that sounds good to me. >> i mean you'd take it on a great weekend and everything. you figure this thing is going for a few weeks. >> likely they didn't know what was going on this weekend when they decided to release it? >> well they didn't know about the upcoming al pacquiao fight. >> the manny pacquiao and floyd mayweather fight was a bit of a disappointment. would you agree? >> not as exciting i hear as "avengers: age of ultron." i didn't read it. but the clips were on the boring side. you want to see somebody get knocked out and -- >> you know, the thrilla in manila. rumble in the jungle. >> the smack talking -- >> everyone is saying those were the fights of the century, not this. >> the prefight smack talking was -- >> you're a huge boxing fan. >> a fan? >> of course i watched it. thank you to allen wastler. >> if you're keeping score at home the number is now five. >> yes. that's the number of announced gop presidential candidates today after two nonpolitical pros dr. ben carson and former hp boss carly fiorina through their hats into the ring. >> but one has already made a media misstep if you can believe it. we'll tell you who next. with schwab. and when a market move affects, say a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move wherever you are. and start working on your next big idea. ♪ ♪ first let's remember she's the poster woman for atrocious corporate governance with that fiasco with wiretapping each other over at hewlett-packard. secondly -- but i appreciate her intellectual honesty. >> that was barney frank firing back at former hp ceo carly fiorina who said she would repeal dodd-frank as she hinted and she might be running for president. >> he's a democrat as well. she announced she'll run in 2016 who declared their candidacy of today's session. john harwood has the details. over to you, john. >> simon, it's fascinating this expanding republican field now includes ben carson the retired pediatric neurosurgeon and carly fiorina as you mentioned the former hewlett-packard executive. both touting their experience as nonpoliticians as assets in the race which is filled with a bunch of governors and senators. >> obama, you referred to him as a psychopath. what did you mean by that? >> i said he reminds you of a psychopath. >> tell me how. >> because they tend to be extremely smooth. charming people. who can tell a lie to your face with complete -- looks like sincerity. even though they know it's a lie. >> do you think he's a liar? >> and of course that's ben carson who doesn't hold back in any setting. he didn't hold back when i talked to him in detroit yesterday. we'll have our full speak easy video out later this week. tomorrow, that republican field is going to grow by one more when mike huckabee the former arkansas governor gets in the race. >> getting pretty crowded. i love those speak easy events you did. on carly fiorina she had a bit of a tech mishap. someone who comes from the tech world didn't get the right website of didn't get carly fiorina.org. what exactly happened and who did? >> well, her website is -- the real website is carly for president.com. and it looks pettilyrfectly fine. but if you're looking around you might not know what her fiorina.org, what you get is a website that shows the sad face 30,000 times depicting the number of people who were laid off when she was ceo at hewlett-packard. it's a political opponent of carly fiorina and it ends with the display of sad faces ends with a quote saying i wish i had done it faster. so not what carly fiorina wants people trolling around the internet to find when they look to find out about her campaign. >> is anyone backing her financially? is anyone in silicon valley backing her and is anyone backing dr. ben carson? do any of them have a chance when it comes to the nomination or -- >> in a big money sense. >> in a money sense. and in general or are we just waiting for scott walker to announce his candidacy? >> they're certainly in the top rank in the ways these two howho announced today are not. remember it only takes a small number of wealthy backers through the super pac system. it wouldn't take much more ben carson or carly fiorina if they could get the right allies. ben carsons has a significant grassroots following as a result of his fame and renounce as a surgeon at johns hopkins. the successful books he's done since he spoke at the national prayer breakfast. carly fiorina less so but she does have some appeal to republicans as a woman candidate in the year when hillary clinton is running on the democratic side. i would expect they to raise some money. there's no indication though that she is going to dominate the tech fund-raising field in ways that the top tier candidates are. >> john ahead of this announcement, what does governor mike huckabee running on? why is he entering the race again? >> well, huckabee was a successful governor who won the iowa caucuses in 2008 and for a while was the principal challenger to john mccain. avenues mainstream politicians as a conservative religious conservative at one point. he has moved further out of the mainstream since then as a talk show host on fox and saying some pretty far out there things about not just president obama but others so he's moved himself further to the fringe. i don't think he's a viable candidate in a year when there are other viable contestants, including ben carson for conservative christian support, but one of the things that we've seen is that running for president raises someone's profile, keeps it elevated if they already have a profile, enhances their capacity to earn income and also of their aides and advisers to earn income from the campaigns. i don't know that's where mike huckabee is doing it but it could be. >> so governor christie in question but we have to leave that there for tonight. nice to see you. john harwood joining us from d.c. >> the nfl draft ended on saturday but the investment in players is just beginning. fantex is the athlete's stock exchange that allows investors to buy stock tied to athletes like vernon davis who is outside the nyse right now. we'll talk to him on the ceo of fantex on how that sports he can change is performing. and coming up in just ten minutes time cnbc's "fast money." much more ahead from the emerge america's conference in florida. don't miss chief technology officer megan smith. back with more "closing bell" in just a moment. here at td ameritrade, they work hard. wow, that was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this. it's been a year since the launch of fantex's athlete stock exchange a platform that allows investors to buy stock -- to buy shares of stock tied to pro athletes and their earnings and one of the biggest names out there, vernon davis, tight end for the san francisco 49ers, his stock is down $2 since its ipo last year at of $10. although shareholder have been paid a dividend of $1.50. >> now they're co-investing in a series of jamba juice stores. joining us now, buck french of fantex, the ceo and san francisco 49er vernon davis. why jamba juice? >> part of our relationship allows us to co-invest alongside them if they're getting opportunity based on endorsement type deal. so vernon had already owned a jamba juice store and created and opportunity we believe to create future cash flow streams for investors. >> let's talk about the stock. i have a san francisco 49ers fanatic fan in my life and he's not happy with you or your performance. how would you reflect on that? >> excuse me. i'm supposed to take all the heat. >> you know what? it's really not about the performance because at the end of the day the whole team we're all, you know -- we suffer together, we suffer together. we paid three dividends since then so we're on track. >> so with the rise of fantasy sports and now fantex more and more the individual player not just the team is kind of in the spotlight. how do you manage that. not only do you have the fantasy folks, now people think we have stock in you in effect concerned about your financial performance. at what point is it too far or do you think this is a good thing? >> i think it's a great thing. you know it's all about, you know how can you contribute to fantex as an individual as a player, right? and fantex they're very very poised in their decision to pick certain guys. >> vernon i have a question. what about your teammates? do they give you a hard time? is colin kaepernick giving you a hard time about being with fantex? >> they support me. they're all about it. they're all about it. >> want to make sure. >> i have a question for you, buck. what kind of investor reception have you gotten and what types of investors are betting on him? >> so we focus on the retail investor. it is a classic, you know, people who see a whole new asset class being created on a security that's noncorrelated to anything in their portfolio today, and you think about it i mean vernon "x" dividend is at $9.50 a share and we have an ownership interest in jamba juices so he's probably flat relative but in the past year it yielded 15% off a $10 ipo. >> you make money out of it presumably going there in the first place. >> they paid me $4 million for 10% of my future brand income. >> thanks for coming in. just giving you a hard time. that does it for us on "closing bell." let's go to "fast money" live in miami. sun, stand, and "fast money." we're talking the next big thing in tech the hottest trends in emerging markets and the best ways to enter the gateway to latin america. a historic day for cnbc coming to you live from miami. it's the biggest technology event bringing together tech professionals and company was ties to global play ersers in latin america. huge lineup on deck tonight. you think facebook is tapped out of users? think again. we're sitting down with a top

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