expect something out of iran by oil >> tyler, have a great weekend. thank you for joining us. >> thank you. >> that will do it for this week's edition of "power lunch." good to be with you and back home. >> we're glad you're back. "street signs" begins right now. okay, welcome to "street signs" everybody with the countdown to the grudge match is on. germany versus greece and the winner take all soccer game. we can learn about the euro crisis from this matchup of david and goliath. we'll tell you how. the stealth russia boom, the latest billion-dollar bet by an american giant on the former soviet union. plus a facebook bull putting his money where his mouth is and herb's navigating navistars, bumpy road ahead, mandy. >> hello, everybody, happy friday. modest comeback mode following the second worst day of the year on thursday.

the dow on track to end the week with a more than 1% loss, the biggest of the major averages, though the market's gains aren't nearly enough to make up for yesterday, all ten of the s&p 500 large cap sectors are trading higher and unlike the dow and the s&p 500 the nasdaq is trading higher for the week and on track for its third straight weekly gain. we get out to mary and rick santelli. mary, on the banks first of all, obviously they're doing very well, but i'm wondering whether this is kind of like it's not that it's great news, just that it's not quite as bad as we were expecting. >> no and keep in mind, mandy, this downgrade had been telegraphed by the banks for quite some time and a number of them had submitted sec filings well over a month ago indicating what a potential downgrade to their debt by whatever notch they were eventually downgraded by, what it would cost it as far as additional collateral payments. so if we look at how the bank stocks are performing, they are

bouncing back, yesterday they were down in tandem with the rest of the market. we see the recently goldman sachs goldman sachs is a little bit weaker, one of the reasons we've seen a little bit of a shift in sector leadership today. financials certainly were the best performers but we've seen energy and health care stocks actually come back and take some of those leadership positions today. >> okay, mary, thank you very much for that. rick santelli, a whole pile of supply, $99 billion worth of supply coming on next week and a slightly stronger stock market. how is demand holding up there for bonds right now? >> you know, demand seems to be fine. we're up about eight basis points on the ten-year on the week, on a range, closing range of about eight basis points on the week. it wasn't a huge amount of volatility in treasuries and as sue and tyler were talking about, yeah, the dollar index is up little more than half a cent but really most of the volatility was relegated to stocks. i'll give you one final closing comment, we're all thinking about the aftermath of moody's. some say ignore it, others don't. if you look at the way the

market prepared for it yesterday every thursday we learn what the commercial paper market did and it was off close to $9 billion the week ending yesterday. were these in anticipation of moody's? next thursday we get another number makes it that much more important to pay attention to. >> you can always take the final closing amount, rick santelli the last word is yours. brian? >> mandy, thank you. let us kick off this part of the show -- i know, i know, i know. let us kick off this part of the show with the game for the ages. pitched battle as germany and greece face off in a huge soccer game. there is politics on the line, there's pride, and of course a spot in the euro 2012 semifinals. germany's goliath favored over greece's david but we want you to make your own call because here is a tale of the tape cnbc style. germany first off, population 81 million, greece much smaller, just 11 million people. the unemployment rate in germany just 5.5%, pretty low, right, a

fifth of greece is out of work, 22% unemployment. what about the markets? the benchmark dax index down 13% over the past year, greece's athens, 20 -- ooh, down 52%. the bonds, the german bund 1.6%, the greek ten-year 26%. perhaps it comes down to who they have in their court, right? their dragging rights, their claim to fame in the german corner, who else? david hasselhoff. >> the hoff. >> don't hassle the hoff. he's an american but he's the king over there. the greeks have ianni, the dulcet tones, double al bam, ianni. >> i believe you've sworn never to speak to me again outside of the news room since i bought it. this battle goes beyond the

stadium, it's 17 countries, 17 cultures, one dominant economy, so it's type to rip the band-aid off and end this failed marriage or are these countries going to stay together and keep struggling as they live under one broof? dan greenhaus, we bring in both of you, great to have you on the house is. asharaf, socker in europe has a habit of arousing deep passions and old rivalries like politics and current economics. can you draw the parallels here? >> people did not start, did not stop making jokes and references to the eurozone, the greek player is going to get a red card by the german referee and so on and so forth. listen, i am a big fan of the sport. there is something interesting, when was the last time you heard the german most watched player has a last name which is gomez, spanish origin. one of the greatest players

origin from turkey, from tunisia, from poland. this is germany we're talking about. so i am looking at it this way. the fact that this german team has more international look about it, more international feel about it could probably lead to more of a tolerance by angela merkel to listen to its spanish, italian, greek neighbors and may have to play ball and extend the austerity obligations that the greeks have to make, instead of them having to save 12 billion euros in two years, maybe they have to do it probably in two and a half years or three years. i hope you see where i'm going with this. >> i understand where you're going compactly. dan do you agree germany is not going to say take it or leave it and grab the ball and go home? >> ashraf is smart as a whip. i'm an american so by definition i don't like soccer, but more generally, you really can't come

to a conclusion other than germany has to relent to some degree. i don't say that flip pantly. clearly the euro project has been built on decades of german pushback on what is ultimately a french push for more growth, more integration but eventually we have gotten to where we are that is to say the germans relented over time and going forward over the next six to eight quarters they're likely to continue to varying degrees relenting. >> dan, we're using the soccer match as a broader metaphor, right, and i know it's not a game, there is a lot of money, and there's a lot of livelihoods on the line here but in the fight between greece and austerity and germany, what they want, who do you think will win? will anybody win? >> well, everybody's losing to some degree, but generally speaking to the extent that we're able to hold the euro area together and i am someone who believes ultimately the euro area will hold together, whether

it includes greece and/or portugal or not, that for me is "the definition of winning." it sure as heck is not going to feel like winning to a lot of people and nothing going on in greece feels at all like winning but at the end of the day holding the euro area together is the goal and to the extent you can do that you've succeeded. >> ashrof, what would be the best possible fiscal outcome of this global game? >> before i start the serious question, let me answer a more serious question. it is no coincidence that the unexpected victory of the euro cup by greece was in 2004. guess who was their coach? he was german. the last time greece won an unbelievable victory was under a german coach. is that the only way for greece to stay is by some good sightings by germany. i think dan is right. the eurozone needs to win, it needs to survive. they worked on this thing for

half a century. how do they do it? they'll have to bend the rules, they'll have to extend the targets, if it takes one or two years for them to get down to debt-to-gdp to 3% or 5%, may have to take two years. can germany afford to leave this thing and go by its own? no way. if germany dares to even think about going by its own, it would no longer have the benefits of a cheap currency, low rates and so on and so forth. so we would not like to say there's no way but there is no way that germans are going to take this on their own and are going to leave and we don't buy a smaller eurozone. >> i know you don't buy that particular seen area know ashraf but what if the eurozone doesn't win and there say breakout. it may be unlikely, undesired but it's not impossible, is it and what would be the implications? >> nothing is impossible, but i think at the end of the day the euro area we hear this

frequently is a rich country as a whole, as a whole their debt to gdp is not particularly unattractive. we always focus on germany but there's more going on there than just germany and while i agree with you it's certainly not impossible as ashraf noted people tend to incorrectly think of the euro as what began in 1999 but as ashraf noted, this has been pretty much since the end of world war i, certainly since the end of world war ii they've been working on the project and i don't think they let it fail just cause and at the end of the day it's in the german's interest to hold this together, assuming they're driving the bus. there's almost no immediate benefit to germany if this thing falls apart. >> i loved that point of view, dan. you know, because if you haven't been there, and you're sitting at home watching financial tv for three years, you picture europe as like a financial wasteland, right, where everybody's struggling, nobody has any money.

having been all around the region, including to greece, i love what you said. it's got a lot of money there, we just don't talk about that side of the story. are the global financial markets underestimating europe? >> i think they're underestimating and love to get ashraf's take but i think they're underestimating the will of the so-called elite or leaders in germany and france for sure, although to your point there are several aaa rated countries in the region. i think americans certainly are underrating the will of politicians to hold this together. >> ashraf, agree, underestimating the will? >> yes, but one thing is to take this thing called the second biggest eurozone in the world. the eurozone is tired. its u.s. is not doing that great either, and the brics, b-r-i-c, as i like to say the pigs at any time to continue on the brbrics, i'll give you time to laugh on that joke, but basically the brics are taking the rates down

and the u.s. is hurting as we see in the chicago phi. it's the eurozone the reason stress is being put under light is because it's the first region in the world that is having to take the austerity that the u.s. has yet to do. >> ashraf, dan, always fantastic to have you. i love all those, you know, images that are being conjured up like pigs standing on bricks or throwing bricks or bricks throwing pigs or pigs flying, whatever. >> he did give us time to laugh at that, just like the wunderhaus where they always love at the jokes. a big weather weekend on tap, heat and trouble brewing in the gulf. todd santos, what kind of trouble? >> hey there, mandy. we'll talk about the heat but i first take you into the gulf of mexico, we're looking at a potential system that could be starting to develop across the

area, hasn't formed yet so a lot of question marks. notice the convection in the shaded area i'm talking about a number of low level centers that could potentially become a tropical depression, if not a tropical storm over the weekend. so initially some of the computer models were bringing this closer towards florida. right now kind of split so it depends on where this forms and how deep that system gets so a lot to pay attention to this weekend. at least some of the models split as far as the western gulf of mexico, at least right now some of the deeper convection bringing showers into florida, one of the clearer pictures initially we are going to be dealing with heavy chances for big time rain in southern portions of florida through sunday morning. keep in mind we could see chances along the northern gulf coast for issues. the heat will be settling down this weekend. there's a look at the heat advisories for today as far as a few of us may have a chance for some relief thanks to the thunderstorms, the back side of the front through sunday and even into monday with at least the heat easing back so it's kind of a quick, little taste of true summer for you guys.

>> thank you very much, also continuing our bric theme we'll continue it through this show until people tweet us and say please stop. let's get to brian shactman with a market flash. >> no brics, just cotton. jpmorgan issuing several apparel makers and vf corp. only one with an overweight, stock at the highs of the day, up 2%. price target is 167. keep in mind they talk about management mostly when dealing with this but cotton year over year way down, a good thing for vfc. >> we like to hear good things. thanks, brian. on deck a lot of lasagna, like at the bottom of your stomach sitting like a brick. who is hot and who is not when it comes to economic growth? steve liesman will take us out of this world to find out which country is winning the growth game. another twist to the home building is back story, building not to sell. brick by brick.

"street signs" returns after this. he als is important to me because i recently had a family member who is diagnosed with this, it's a debilitating disease that affects the neurological system to the point where you just completely start to deteriorate and it is a very difficult process to stop. if we are privileged enough to have any extra, there is always somebody in need and we always want to give back. i'm pete najerian and i'm living well. ♪ [ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future. ♪

these these days we are bombarded by headlines and global economies stalling and shrinking but there is good news out there and in fact we brought along mr. happy pants himself steve liesman spanning the globe with a look at who's hot and who's not. steve? >> unfortunately most of it is not but we're going to talk about this spin the globe spinning this way, that's fine. let's talk about what's

happening, a pretty dramatic change in the outlook for world growth we're looking at the jpmorgan forecast from april through june. let's look at the united states and what you'll see here is in terms of who's hot, unfortunately, this is about as hot as you get in the developed world today, 2.1%, but that represents a 0.4% decline from the april forecast of jpmorgan. latin america, that looks hot, but it's really not for latin america, that's half a point down from where it was and that number could be in the 5% to 6% range. japan and china a surprise here, he decided to go west, okay. japan is actually strengthening at 2.5%, policy issues there, 7.7% china coming down. that country has registered growth numbers like 14% so even though that looks strong, not as strong as it's been and we get to the troubled area leaving, you know, last is least here, take a look at europe, that's been in recession since

december, maybe explains what they're doing today, down just a point but look at the disparity within europe here, germany and italy, italy minus 2, germany plus 1 going the other way, going up, so germany is looking better, italy looking much worse. finally looking at the uk here, that's also come down, explains the monetary policy numbers that have, monetary policy initiatives coming out of the bank of england there, down 0.6 from where it was two months ago. wrap it up and we'll show you where it looks like if you look at emerging versus developing. global 2.1%, that number could be 4% or 5% easily, developed world 1.1%, you see how much better the u.s. is doing relative to the developed world and emerging markets 4.5, should be more like 6% or 7%. guys? >> two points, steve, first off think about how much gdp could be added to the globe if all the nations of the world actually did build giant yellow neon

walls to outline their countries from outer space. >> there's a huge keynesian project. >> you and i are going to botswana, right, zambia and i'm serious, those are countries that are growing, they don't have the muscle to pull the world. >> they're small. you need developed nations to do 2% to 4% and emerging markets 6% to 7%. one interesting aspect is they're not all slowing for the same reason. they're slowing because of tightening in the emerging markets. the outlook for the ems is good for 2013, we're not sure what policy will be in the developed world. europe is going a little bit keynesian is 1% gdp. we don't know what the fiscal outlook is for the u.s. yet. >> you notice the globe behind steve is speeding up, the rotation is getting fast and i'm starting to feel a little dizzy myself. >> time is literally flying with

steve liesman, steve, thanks. >> my pleasure, thanks. most people seem to agree there's more reason to be negative than positive these days, right? yet the s&p 500 is still up more than 3% this year and the nasdaq if you haven't kept score is up more than 10% year-to-date. so does mr. market know something that we don't? joining us, ken mercadan and cnbc contributor dan greenhaus. dan, as a news guy we admit negativity tends to dominate the headlines, that's the basis of news. the nasdaq is up 10% this year. is there something we don't know about what's happening in the u.s. or the world? >> well, at the very outset it's a question of alternatives, where can you going to put your money, warehouse it for basically no return? individual investors, not necessarily institutions but individual investors for the most part have already come out of the market over the last year

to the point where they could sleep at night so they're not really running for the doors on all these news events, and when you run to the doors you're getting nothing on your money. so it's really a situation now where people are starting to get somewhat optimistic with the election coming at the end of the year, the conversation in europe turning towards maybe a more tighter fiscal union than we're going to start seeing the fog of uncertainty lift a little bit and no one wants to be not on the train when it leaves the station. >> we certainly hope, ken, that we are in the late innings of uncertainty but dan, from a technical point of view, summer is always a little choppy, right? is there a technical story that we can tell here and try and clear some of that fog? >> well i'm certainly not known and we're certainly not known as being particularly optimistic but for the time being, btig is watching the 1290-1300 technical level as an area of support that represents an important retracement level, a 200-day

moving average. as long as we remain above that level we'll be a little more optimistic than we might otherwise with. look at that, there's the chart. we'll be more optimistic than we otherwise might be. if i could ask ken a question talking about the train leaving the station, talking about consumers or sorry, investors sort of turning around the behavior they've been exhibiting the last couple of months, if not quarters and years. what evidence are you seeing to suggest there's a train leaving the station and people want to be on it? >> the evidence i'm seeing is not that the train's leaving the station now, is that so many people felt they got burned in let's say 2009 when the market turned and when it was only after the market was up 10%, 20%, 30%, they feel safe to get back in and realize the fool's error in trying to time that. most people have come out of the market to the individual basis to the point they've said all right it's going to be crazy and choppy all over the globe, they're going to wait for signs to come back in for maybe the other half of their investment capital in the mattress, but for

the most part i think there's this general feeling that, you know, eventually things will pass and unfortunately so many people have been conditioned that the 11th hour is when everything gets done so people aren't as afraid of things not getting done because they're waiting for the 11th hour. >> not a good strategy to sit around waiting. ken, dan, thank you so much, enjoy your weekend. facebook's big bounce, the stock, believe it rnt o, the stock is up 27% since its low. tara lindhzen is here. celebrities and the super rich lined up for tesla's high-end electric cars, now a model for the rest of us normal people. "street signs" is back after the break. [ male announcer ] at scottrade, a a so we have ongoing webinars and interactive learning, plus, in-branch seminars at over 500 locations,

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and there'll be no gas. [ engine turns over ] [ male announcer ] we created the luxury crossover and kept turning the page, writing the next chapter for the rx and lexus. see your lexus dealer. tesla rolling out its first family sedan, a five-passenger car with slightly more modest price points but will it work and before we get to phil lebeau, what is going on over there, herb? what are you doing on that chair? >> the chair's very high, i feel a little awkward but it's okay. >> hello up there in your ivory

tower. >> that's why we need "behind the street signs." tesla electric fast, hot, pricey, this is what a more -- still expensive car, right? >> it's more modestly priced than the roadster, they're no longer building the roadster. look at the tesla model there are two stories, the car itself which a lot of people will be focused on since deliveries start today, electric car priced between $57,400, $77,400, before the federal tax credit and 85 miles per gallon and 265 miles fully charged. here is the real story wall street is focused on, whether or not beginning today can tesla ramp up deliveries, they're expecting to deliver 5,000 this year, 20,000 next year and a few minutes ago i talked with the chief designer at tesla, he's confident they can beat these targets. >> the 20,000 number is a number that we have talked about for a long time. we are very, very comfortable and confident that we can deliver a high quality, an

exhilarating car at an exhilarating experience for each of the people who own those cars but you never know if demand were to go a little bit higher, maybe we do something a little more. >> how's that for a tease. take a look at shares of tesla, that confidence on the optimism own wall street is why shares are up 14% this year. when you compared tesla versus the rest of the radio industry and the auto manufacturers, it's no comparison, they've blown away the rest of their peers so to speak over the last year. >> many of the other stocks are negative, aren't they? i bring in herb now. phil before you go, talk to me also about gm and russia. feels gm is making a big bet on russia and where it is actually losing out in other areas of europe, it's hoping maybe russia can make up for the losses. >> russia is rapidly growing in terms of auto sales and that's why everybody, not just gm, they're moving in there as quickly as possible. today they broke ground on a new facility that will allow them to double their capacity in russia, eventually this along with their other plants will allow them to

build about 350,000 cars a year. you look at gm and russia, the numbers are small relative to the u.s. but their market share this year is 9.2%, they've been steadily increasing their market share so russia is critical and guy this is is all about shifting production from old europe to the new parts of europe where obviously the cost basis is much lower. >> i want to get back to tesla as well. we have herb in here. what are your thoughts on this company? >> what i think is interesting, there's the stock and there's the company and there's the unknown and what i think is fascinating is they're opening up these stores and phil and i talked about this offline, opening up dozens of tesla stores in high sort of traffic and high-end parts of malls around the country, they just opened their first one here in the east coast at the westchester mall in white plains, right next to nordstrom. phil tells me there's some by tiffany's stores. you don't get to test drive the car but you can get on the waiting list. there are so many people going in and out of the stores, every time i'm in the mall i see

people looking at them, going around them. they look cool. they won't let you necessarily sit in them. >> it's a curiosity factor. >> tremendous. they open them up, no engine in there. >> guys, the whole idea here is to break the mold when it comes to selling cars. if you were going to go out and buy an electric car you could go to established auto dealerships, there's no doubt you could do that. say you're out with your wife at a high-end shopping area and you're in some stores and you see the cars, you've already got the money to spend because you're going to the other places because you're spending money, why not go in and look. >> fair enough. i don't know if you've had a chance to drive a tesla. i have, and i race cars on the side so i gunned it. the things they get down the road, but i'll say this, phil, it's a different kind of drive and to herb's point, tesla, even for somebody that drives a lot, you've got to get used to this car. there's lack of engine noise. >> true. >> there's no combustion lag because it's electric, it has intant torque, you need traction control. it's a hot car to drive.

how do you sell it to herb's point? i'm agreeing with you for once. >> i went in the store and said where do you get my car serviced? this was interesting. >> best buy? >> ha, ha. that's a great idea for them. he said, we will come to you because the way the service works they come to your house, your office. >> to that point, guys if you look at the number of parts in the tesla model ser have is success a standard internal combustion car, it's dramatically lower that's why they're confident if people need service they probably not need a lot of service, if they are they can send out the patrols as they call them to go to your house. that's a nice selling point. >> you have driven one, phil? >> the model s, that starts this weekend, so that's the real question, how will it go over. >> let's see if they can live up to the expectations at the market. >> i know we have to go but i want to point out there's the stock and there's the company, they go in different directions

at times, keep an eye on that. >> that was what i was trying to get at. thank you, phil. thank you, herb, as well. herb is going to give us an update coming up on navistar plus looking to make some extra cash this summer? how about dividends. we'll tell you why these stocks are so sizzling hot at this time of the year. and built to rent, new homes are being built for temporary tenants, but are we just building a new housing bubble? we'll dig into that when "street signs" comes back. to use legalzoom for important legal documents. so start your business, protect your family, launch your dreams. at legalzoom.com, we put the law on your side. looking for a better place to put your cash? here's one you may not have thought of -- fidelity. now you don't have to go to a bank to get the things you want from a bank, like no-fee atms, all over the world. free checkwriting and mobile deposits. now depositing a check is as easy as taking a picture. free online bill payments.

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welcome to the world leader in derivatives. welcome to superderivatives.

brian shactman at the market's desk. trip tripadvisor, take the two stocks that spun off from expedia late in 2011. 8 85% to the upside in tripadvisor and expedia up 65%. if you've kept t you've done extremely well. >> thank you very much for that. it is "street talk" time where we go digging for five off the headline stocks, the kind of stocks you don't say i've already heard that. we'll dot digging for you.

stock number one, we rarely say it but sony believe it or not is spiking. >> when is the last time we said that? you're right, sony's a struggling company but a report out of tokyo beaten down competitor olympus is in final stage talks on a 50 billion yen investment from sony, that would give sony about a 10% plus stake in olympus. they would join forces in their medical equipment. olympus has been hurt by an accounting scandal and they're the worldwide leader in the endoscope market. >> they've joined hands in endoscopy and hit by the strong yen as well. stock number two, first solar, maybe second solar being the second stock but it is the best performer in the s&p over the last two weeks or so and it's headed higher by 8% today as well. >> today is like beaten down but up friday i guess. rare news for first solar, os listening's county approved certification for first solar to install a big solar range outside of los angeles, that

stock is up 8.4%. however it is still down 88% over the past 12 months. >> it has to make up a lot of lost ground there. stock number three is a small cap, big winner, though, harvest natural resources is up almost 90% today. this is not quite a penny stock but a small stock. >> it's about as small as we'll talk about here on cnbc. the reason i threw it in here, yes, it's small, based in houston, they got a huge operation in venezuela or they did, and the stock is trading like this because they agreed to sell their venezuelan assets to indonesia's state oil company, everybody is optimistic. the reason i'm throwing it up, keep in mind i went through the deal documents, there's a caveat. the deal is subject to the approval of the government of venezuela. >> anything could happen. >> anything is subject to the approval of the government of venezuela, be careful. just throwing it out there. >> subject to the approval of one particular person. >> yes, yes. >> let's bring in herb.

come in and talk to us, what is the latest on navistar, you have a great piece. >> the story just keeps getting better as they say. deal reporter has a piece out saying that navistar is interviewing financial advisers for some defensive advice. as i've been reporting, the company has been hit by one other thing, one thing after another after another, including big stakes by activist carl icon and mark urchvsky. very careful here if you think you'll play this for a takeover. while anything is possible as i write on cnbc.com right now, give me credit analyst vicki bryant says "newly minted defensive measures announced this week are not a failsafe certainty." no matter what happens on the activist shareholder front, you've still got the epa certification issues for their big rig engines and the monetary impacts, if the company has to retool everything or pull the engines from the market, and that's why vicki bryant is

saying bankruptcy remains a possible option for this company. >> in other words hiring those advisers is really too late too late. >> you never know. >> and i do want to say this, you and i were talking about navistar in their engines, a former truck broker in wisconsin, one of my economic sources, he talked to a bunch of current truckers, nobody he's talked to is reporting a lot of problems with navistar. talked to how many truckers, a small slice of truckers my buddy talked to reported. doesn't mean there aren't problems. >> the warranty issues in this company they paid a lot on the warranty side. >> fair enough. >> thanks very much, herb. >> and we have time for -- >> no time friday today. >> apollo reports on monday, keep an eye. it will be interesting, the for-profit, return of the for-profit resetting story. >> interesting enough, even though there was no time you got it in. >> i know what it's like to be kicked off a set. >> you have to answer to the producers, not us. do dividend stocks return more to investors?

you do hear it a lot, right, but is it true? john buckingham is chief investment officer of afma capital. you've gone back to 1928. what does the research tell you, what does it tell us? >> it tells us that dividend paying stocks historically outperformed nondividend payers. generally speaking the higher the yield, the better the long-term return. keep in mind about 25% to 40% of total return on equity is over the long-term has been from dividends so you still want to have companies that will give you capital appreciation as well. but dividend paying stocks have historically been less volatile, lower volatility and higher returns and interestingly here in the summer months, dividend paying stocks is have actually outperformed by a far wider margin nondividend payers in the sell in may and go away kind of mentality that a lot of people get this time of year. >> of course this morning we had darden on, it hyped its dividend by 16%. there are a number of other

companies, walgreen, eaton, intel, also on your radar screen for dividend reasons. >> right, well in our prudent speculator newsletter we published 30 stocks with excellent yields. the names you mentioned are attractive, walgreen the first on the list here this week has a big acquisition of boots or partial acquisition in the uk and the market hasn't really liked that, although the company chose to also raise their dividend in all of this period, and so your yield on walgreens 3.7%, they've just diversified their revenue stream away from the u.s., which of course has had some issues here with expre express scripts and the health care situation that's going on. lot of opportunity in walgreens. eaton -- >> john, i know we want to get to your eaton, total, we showed them on the screen, don't have time to dig in. sorry, we'll get you back very

soon. >> okay. >> thank you very much, total, walgreen and eaton. >> herb ate the time. >> actually i did. zuck and company may finally have something to cheer about. >> we asked the ceo when he got in and whether facebook has room to run from here. people with a machine. a a

i'm bill griffith. coming up at the top of the hour on "closing bell" health care stocks rallying perhaps we are gating ready for the supreme court's ruling on obama care,re, could come monday, should you buy in or get out of that sector, ahead of the decision? we'll look at both sides of that and look at both sides of the banks. they're higher despite moody's downgrade yesterday, bull/bear debate on whether you should be betting on the financial sector and we'll hear from somebody who says an increasingly popular type of home loan could be putting your retirement at risk. maria and i will see you at the top of the hour from the new york stock exchange for "the closing bell." mandy back to you. this stock is up about 28%, facebook, from its lowest level of $25.52. i'm sure you're thinking 20% from its high price, no from the

low. if you made the bold call and bought at the low, you'd actually be making money from facebook and that's just how howard lindzon did, he bought when it was selling 27 bucks and joins us on the cnbc newsline. what made you do it and do you believe in the stock at these levels? >> my daughter does. she called me from class, she has a stocktwits app and a whole generation will love facebook for the next 20 years. i've been talking about mood over math and facebook is not mathematically solvable so as greg on the stream says there's a cornucopia of new mathematicians valuing facebook. i got it around 28, my daughter was texting me, went on the stream, talking to some people about selling premium because the options have just gone out, and it turned out to be a really good time to both buy the stock and sell some put premiums, and we sold some the other day, it's all live on the stream, sold

some near 32 but my daughter actually still owns some here and it's hard to bet against her. >> even at 27 bucks you looked and people are saying it's trading 40 times profits, x times revenue, x times earnings and many people were making smart cases for it being wildly overvalued even at 27. you obviously don't feel that bay. >> i don't feel that people can take, to talk math about facebook. it's broken all the rules. it happens. apple broke the rules in retail and hardware and global distribution and facebook took it up a level. people come on the stream or tv and write long posts about this is dead, why would i believe them? my daughter knows just as much as them. my dog bagel knows more about these people. >> howard, what do you make of

nomura with a 40 buck price target? they say despite the uncertainties around their ability to improve their monetization? >> i never listened to nomura before and don't plan to now. if you're going to buy facebook what am i willing to tolerate? mark cuban was on your show, smart man, billionaire, bought 150,000 shares live on his twitter stream. guess what? he had a plan, didn't work out well, he took a loss. so where is nomura for me when facebook drops 20%, where is apple's pundits calling for a trillion-dollar valuation and the stock dropped 20%. if nomura is following you around and giving you updates then i care but if they're not giving me daily updates don't care. does that help? >> thank you very much for joining us, howard. coming up next, built to rent. >> i'm still on the schlmiel

reference. why these brand new homes don't have for sale signs out sfront. >> before we we will return right after that. >> before we ahead to break, here is today's return on retirement. only 16 states have save levels of funding to fulfill their share to public employees, that's -- so which is the largest funding short fall? rried. i had three kids. and she became the full time mother of three. it was soccer, and ballet, and cheerleading, and baseball. those years were crazy. so, as we go into this next phase, you know, a big part of it for us is that there isn't anything on the schedule.

or treat gas with these after you get it. now that's like sunblock before or sun burn cream later. oh, somebody out there's saying, now i get it! take beano before and there'll be no gas. take beano before so what i'm saying is, people like options. when you take geico, you can call them anytime you feel like saving money. it don't matter, day or night. use your computer, your smartphone, your tablet, whatever. the point is, you have options. oh, how convenient. hey. crab cakes, what are you looking at? geico. fifteen minutes could save you fifteen percent or more on car insurance. [ engine turns over ] [ male announcer ] we created the luxury crossover and kept turning the page, writing the next chapter for the rx and lexus. see your lexus dealer.

today's return on retirement question, which state has the largest public pension funding shortfall? the answer, illinois. based on the latest numbers, the prairie state has less than half of the more than $138 billion it owes to teachers, law enforcement, and public employees. for more on retirement go to retirement on cnbc.com. >> interesting facts. meantime, investors are reaping

rewards from buying properties and renting them out. some home builders are trying to get in on the action. what are they doing? >> joe peterson has been building apartments in dallas fort worth for the last two decades, but a new tren in rentals is pushing him in a new direction. >> we felt like how could we develop high quality rental housing in a product that homeowners would appreciate. so it's offering the product they want with a financing peekt that works for them. close to 300 homes will go up here. some have built low income rentals in the past, building higher end is unique in today's

market. >> it's very prudent, we're apartment developers and managers with b a when offer something so unique and different that it kind of limits our competition. >> he admits he's in competition with investors eating up foe closed properties to turn around as rentals. >> competing with individual rent houses is a concern. most typically foreclosed homes or investor or sungle family homes are not as professionally managed. >> we asked if he was concerned that by the time their complete the market may go back from renting to buying. he think ises the market will be hot for many years to come. >> can you quantify that? how much has this demand for rent pushed up in the past year? >> we have seen rental returns

going up very much. they're up any where from 2% to 6% and higher into the doubt digits. it varies from market to market. demand is surging because people don't want to buy or can't sell the home, their under water, or they can't get the right kind of credit. >> thank you very much. and before we go, this is a lot of lasagna. ♪ on the road ♪ and we know that it goes on and on ♪ [ female announcer ] you're the boss of your life. in charge of making memories and keeping promises. ask your financial professional how lincoln financial can help you take charge of your future. ♪ ♪ oh, oh, all the way

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. it's friday, . it's friday, come on down, brian. okay, before we go, that is a whole lot of lasagna. feast your eyes on the world's largest lasagna. it was made in poland. it took ten hours to bake and yielded 10,000 servings. it's the equivalent weight of four fiats. >> and make the world's largest lasagna