our thanks to -- we got 15 seconds, barry. thanks for being a guest host today. we're also going to remember what you said. you might be right. 1,525 on the s&p. squawk on the street is next. the job market showing more signs of improvement. you see claims coming in at a five-year low. imhe's carl quintanilla with jim cramer live at the nyse. busy morning shaping up. david, what's coming up? >> we're going to have a good group of hedge fund managers this morning. credit, credit, credit. it's funny we talk so often about equity hedge funds but there is a lot of guys who are

focused on credit when it comes to their hedge funds. we'll talk to john burbank of passport capital. >> been a busy conference so far. >> jeff chronicle may be the smartest man on wall street. the guy saw it all coming. if they'd let him stay at merrill lynch, merrill lynch would be king right now instead of swallowed up. futures once again had that soft tone despite the good claims number. european action looks like this. bank of england did hold steady on rates but the bank of korea cut a quarter point which some took as a surprise. our road map begins with the markets. s&p, nasdaq, the industrials, transports, russell, all continuing to make history by hitting new milestones. three of the most beaten-down names though battling back -- groupon, green mountain and barnes & noble. flying this morning. we're going to explain why and show you how you can get in on action. tesla accelerating just as it reports a stellar quarter.

"consumer reports" calls the model s the best car it has ever tested. amazing calls coming from a gathering of some of the world's biggest and best hedge fund managers. we'll find out what happens when they put their heads together with both salt and sohn in the past 24 hours. s&p at all-time highs for a fifth consecutive session. industrials, transports, russell hit record highs and nasdaq, a fresh 12 1/2-year high. macro data, jim, claims today look good. fannie peabaaybacks is going to allow the government to get out of the way to some degree. >> my prediction is -- first i said we would not have a debt ceiling wrangling this spring. now i'm wondering whether they'll even get it this fall. some people say it is a losing plan by fannie mae. no, t.a.r.p. is going to be hutch a huge windfall for the government. one of the things to watch, there will be no budget deal, no

grand bargain because we don't need one. >> there's a good and a bad. >> there was never going to be one. chris matthews, my friend at ms has always been saying, listen, you really think this would be a great bargain? come on, man. it's just media! >> we're talking november 1st before a president has to go back on a raise in the limit. >> and maybe later because these tax receipts are coming in hot. >> and spending is down. >> the sequester -- >> which we talked about a lot. people are taking note of a little more chop here at these levels. we'll talk to sam stovall later in the show from s&p looking for 8% to 10%, either adding shoulders on double top. investors will be increasingly intolerant of economic data point misses. >> we still have good ones -- let me tell you, in my years, one thing you don't want to get caught up in is when you see stocks like barnes & noble or tesla or green mountain, stocks heavily shorted, when they're up very big that's not an early part of the move. that's kind of late in the game.

but that said, wow, people at salt, the people at ira sohn, they like to short. names heavily shorted are names that are really ripping today. >> david, what's this sound like from people are you talking to? >> much of the same conversation we have every morning with the same fears, carl. you're not hearing that much that you haven't heard in the past. it is sometimes interesting because when you get out and meet some of these hedge fund managers, many emerging managers, others with significant assets, a lot of them are running large credit portfolios. that's where a great deal of alpha has been generated over the last few years and on that front, of course you've got so many questions beyond our equity markets, given that, for example, high-yield average rates are now at 5% or lower on most of the bonds being issued in that market. so a lot of perhaps concerns at least creeping in on the credit side but still people say a lot

of opportunity, in part, jim, interestingly, because so many of the big banks have withdrawn from that market, whether it be bonds or other assets of significance such as assets. >> dodd-frank has actually helped these guys. i know they didn't mean to do this, but there is a shadow of a banking business opening again and it is out there where you are. >> exactly. >> david references this. they call it yield to worst, right? the yield you would get to everything short after default of the barclays high-yield index, 30 years in history, we've never seen a yield below 5%. question is are people reaching too far? >> just the fed is making you reach. this is what's known -- this is a moment where it's austerity for the rich. the rich are having total austerity. remember, you only need to get rich once. when i handle wealthy individuals at goldman sachs all

they wanted to do was own bonds. they can't live on these bonds. as my great, great grand uncle said, if the rich are unhappy it's their own fault. they should be reaching for clorox, for heaven's sake, not reaching for this junk. >> let's talk about some of the names people are reaching for, these beat-down names surging in the pre-market. groupon beat the street with its results since the daily deals website posted stronger revenue. green mountain coffee handily exceeding forecasts, expanding its partnership with starbucks. that new agreement triples. the number of starbucks drinks sold in k-cups. barnes & noble considering paying $1 billion for the nook division. >> it's buy one, get one! >> let's do groupon first. >> that quarter, going over, this has now become a mobile and

local -- i couldn't counseled how many times they used the term "local." we're local, we're local, we're local. 25% of the business is mobile. it was a good quarter. of course the skeptics will say international was terrible, they're not making any money, cash flow negative but they have $1.2 billion in cash. this stock went from a darling to a dog to a dead dog, it's now back to being a dog. >> still down 70% from the ipo price. >> you're no longer hearing about the brazilians. i thought it was a country but it turned out to be a treatment, laser. again i thought that was james bond. i never got that. i don't get those anymore but i do think there was sequential growth, then again we are a local company. local, local, local. >> gncr beats by 19 cents. >> holy cow! >> single serve sales up 21%. gross margins go to 41%. >> this is one where people are going to say, listen, the brewer

actually didn't do that well. they really didn't spell out starbucks relationship but all you needed to know was that sales increase is back 11% to 15%. numbers were spectacular and this has become starbucks' partner instead of starbucks' enemy. chatter was starbucks would start dising these guys. instead they're talking about selling keurigs at starbucks. good for both. >> the thinking was these patents would expire. >> it looks like -- this call is one of those, my favorite coffee came up, the 8:00 brand which is the old a&p. i thought starbucks was going to put them out of business. instead starbucks is their partner. >> does starbucks buy them?

>> i mean hour schultz -- that's interesting you say that because they did buy a key company but i don't think they need to. i think they are good partners. >> finally, bks. that's up 30%, as we mentioned. >> look. if it's true, then barnes & noble, they pulled it off. everyone has said the nook was technologically the superior one. a lot of people felt it was like the zune. sure enou it may just turn out to be -- i don't know the terms. its he's too bountiful. bks, which again there's a 36% port position in bks. you must cover if the deal's triple. you just have to, there is no choice. >> it is a tech crunch report. microsoft has some their own news today naming amy hood as cfo. >> yep. new cfo there.

of course the departure of the cfo not long ago into this theme we have talked about on the negative side perhaps when it comes to steve ballmer in terms of really gathering together potential successors. but on barnes & noble, interesting to remember -- of course microsoft is in at 16.8% stake in nook. paid $300 million for it. er that averaging down if they do actually buy for a billion. as i recall, there was a proposal to buy the retail operations. not sure where that is. that was some time ago. whether that's progressing or not. but a lot of activity in m and a. liberty, john malone. >> david was skeptical about a term in europe. john malone i think after looking at news corp. last night, joh called the bottom in europe, david.

that's where he he's going to get his revenues. it was another brilliant move by this man who only speaks to you and i think no one else. >> well, you've been calling that bottom, too. he sees opportunities. he is acting. i think when it comes to those kinds -- the willingness on the part of companies to do big m and a it does in this environment seem to have to be the big guns. it is warren buffett, 3g guys, john malone, guys willing to take the long view and saying i'm never going to see capital as cheap as it is right now. whether or not that was also a plan europe, of course he wouldn't have done it if he thought europe was a complete disaster. i know it lends into your theme, your big theme, about the turn in europe. >> i'm having the pepper conference here. not the salt conference. i'm peppering the market with positiv positives. >> it's worked. >> i'm not the p.t. barnham with the ferragamo tie.

>> i'm sure david's excited for the train concert later. >> i saw train when i was at my pepper conference at the super bowl. at new orleans pepper. one heavily shorted name, jim, tesla motors jumping into the premarket. the electric carmaker reported first quarterly profit in history. raised its outlook. also now getting a boost from "consumer reports" which is giving the model s a near perfect score -- 99 out of 100. says the model perform better or just as well overall as any other vehicle of any kind ever tested by "consumer reports." you said this call was almost designed to hurt the shorts. >> look. this conference call made me go buy five teslas. this was an amazing conference call. there is a statistic in there. 5% of the people who test drive it buy one. i mean this conference call which is about we're going to make fortunes, it was the kind of call, you know what?

i'm short the stock. run me over with a tesla, i cannot take the pain. >> goldman does take it to neutral today. >> very helpful. >> shares up 59% since the march 19th lows. >> david. >> jim. >> jim, i want to come to you. on tuesday you gave a great call before i left for vegas. we did i think it was the requested m"mad dash." you talked about the short position. you said look out if you're short. those were words that were worth listening to. >> well, thank you, david. it came from the fact that i did go to the short hills mall where they had the tesla show room and i was kind of blown away. "consumer reports" -- i literally bought that lexus, a 2007, because they said those things. i think that "consumer reports" is going to make it 21,000 teslas? they could double that. when people talk with elon musk.

they're afraid to say anything bad about him publicly but i think there is an envy about this man and they want to tear him down. he's basically saying in a conference call, come get me! good luck! >> you know how i feel about entrepreneurs. at least they're out there, they're taking the big risk. yeah, they take shots. but hey, he's making cars. all right? i meang wrong with managing money. they're making cars. >> he's henry food without that peculiar demographic attention henry ford paid to. >> some people think he's john delorian. >> delorian also had a substance problem. the thing about tesla, if you go to l.a., people are driving teslas left and right. you don't see them in new york but it is the "it" car in l.a. this conference call must be read. it is a textbook of what should go right at a company. we're making money. david, it had the most congratulations to question on ratio i've seen. there wasn't anyone who didn't

thank him for letting them be on the call. thank you for letting me be on the call! it was lap dog. >> one last thought -- they did not say they want to raise capital. we both thought that would be maybe a good idea -- maybe not. >> you had to listen to that call and you're tesla to really get it. david is in las vegas and david rosenberg has been notoriously bearish. what does he have to say about this rally? also, the big board bracing for the third biggest u.s. ipo so far this year. finally got a single letter symbol. >> remember qwest? >> quintiles returning to the street. live interview with the ceo as well. another look at futures, relatively flat here but we know how that turned out yet. live from post nine in just a minute. ♪

♪ here we are, me and you ♪ 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 ♪ oh, oh

got some interesting calls from a lot of heavy hitters at the sohn investment conference yesterday. william ackman likes procter &

gamble. >> i was skeptical but that's a very big stretch to get to that level. >> short chipotle. >> raw costs are coming down a lot for these guys. i think they've already spent their time. >> very critical of bernanke is stan druckenmiller. zblefr time you listen to a conference -- listen to yelp compared with groupon, 50 pr% o the traffic is google. i would not sell that. >> finally we'll see what seagate does at the open. jim chanos says you could get out if you need to. >> i'm sick of people just

picking on it. short western digital before you can short seagate. >> david, i'm sure were you watching some of those calls out of new york as well. >> those are always interesting. i don't know which genius decided to have two hedge fund conferences during the same two days. i think very highly of gundlach. i think he's joining us later today. the short of apple was a good call. we'll see whether this chipotle idea is an interesting one. but i certainly listen when he he talks broadly about macro and particularly credit. equities, we'll see. long google? that's the best you can do? >> he did say short aussie collar. >> that's actually good call, rates coming down. you know what, david? there is a lack of creativity here. seagate, okay.

value trap. google, i don't need a weather man to know which way the wind blows. this is a bob dylan conference. i mean give me something. >> the proctor -- >> that's good. it's a reverse head and shoulders pattern. when we come back, how do you make money in this seemingly teflon market. we'll get cramer's "mad dash." and one more look at futures as we kick off a thursday morning. we'll see if those good claims numbers have any impact. back in a minute. jeff... hey, scott! this is no time for lollygaggin', lad. the chickweed and the dandelions are wreakin' mad havoc! now's the time to send in the scotts turf builder plus 2, man! it kills weeds while it feeds and strengthens your grass. feed your lawn. feed it!

but we can still help you see your big picture. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪

[ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ]

if you were awake around 3:00 a.m. east coast, you saw a tweet from jim saying working through monster. a lot of grist here. that might not be the word for it. >> my daughter was just getting up. she said dad, go back to bed. the whole category is slowing. the whole conference call, first part was about starbucks is worse than us, there's much more caffeine in starbucks. well that doesn't sell and neither is this. >> you do not trust this name? >> no. i don't want it. they had a promotion, they had a little oxo promotion in mexico, pulled in, went to red bull. inventories were up. in the end the category is slowing. will is nothing you can do. it is slowing for everyone. >> expense is going up as well. >> right. expense is going up. remember, the fda, they pulled

wrigley's caffeinated gum. monster is being marketed to young people. the whole country is seized -- coca-cola yesterday, all these companies are on the defensive right now. mayor bloomberg i think has a lot of people on the defensive. >> rack space. >> this is its time on the rack. this has turned out to be a server commodities business. they try to portray themselves as a cloud play. you know what? get off my cloud what salesforce.com would say. it is a rolling stone/torque amount of stock. >> three months, 44 down. >> that's a hurtsing puppy. >> hosting. >> hostess is better than hosting. are we in for another record breaking day? we'll find out when the opening bell rings in 4 1/2 minutes. [ male announcer] surprise -- you're having triplets.

[ babies crying ] surprise -- your house was built on an ancient burial ground. [ ghosts moaning ] surprise -- your car needs a new transmission. [ coyote howls ] how about no more surprises? now you can get all the online trading tools you need without any surprise fees. ♪ it's not rocket science. it's just common sense. from td ameritrade. live from the financial capital of the world, the opening bell in about a minute

and a half. s&p is up 12 out of 14 sessions. nikkei finally ended a three-day winning streak. >> how about a breather? honestly, we need a breather. >> what is a breather? >> a breather means that for a couple of days we focus on just maybe some material stocks or some oils. but the broad move of just every day being up is going to start leaving people behind. we need to have -- we need to have some people be. up beside short selling covers. >> let some people feel like they at least have a shot. >> right. the faster we go, the less likely people will come in we need, the people that watch our shows, because they say i missed. if people catch their breath, maybe say i want to be involved. but the longer it just keeps going up, the less i like it. i like stair-step moves. now power block. >> we'll get you a look at the s&p at the top of your screen.

cyan celebrating its ipo today. a little capital formation here, jim. >> yes. there really isn't any m&a but we're getting some pretty good deals. >> the ceo of quintiles is joining us. >> they do early testing to save rats. these guys do human testing. a lot of big pharma companies are trying to harvest late stage drugs, phase three. that's where these guys are. i think people should take a hard look at this company. it is the right space. >> one thing we have not gotten

to so far, retail sales for some of these retailers. limbed, for instance, boosting its guidance. >> tjx boosting its guidance. costco, you tweeted it very early on. the card memberships have been so strong there. retail again not so bad. >> i always have such long lines, i wish they'd open more. >> there's a look at the chart. you called it a juggernaut. >> it is a juggernaut. when i saw whole foods' numbers i was concerned costco could be cutting -- everything was selling. food's selling, hard goods are selling, they are hitting on all cylinders. it is a great company. >> overall, david, in terms of retail you got employment getting a little better apparently. gas prices are coming down. april benefited from an easter shift so there are a few things working in the retailer's favor.

>> yeah. i know those jobless claims numbers not bad. best in five years, i guess. i'm all about credit. it is interesting how many guys i talk to that just focus on that. i'm curious to see the 10-year. that move down from 2 to 1.6. of course we'll see what mr. santelli has to say. two situations we've been following in talking about on the show, one is pxp. we talk about it the other day. freeport comes out and says best and final. it is the may 20th vote. that's certainly worth noting. you don't usually see a raise when a company says this is it, best and final. they didn't go up, they kept it where it is. that stock is down. we'll see going into the vote. a lot of voices saying it is not enough given the move up in the peer group for pxp and the move down in much of the currency

which is freeport shares. finally also want to hit on commonwealth. cwh. yesterday we got that ruling from a judge in maryland on whether the consent solicitation, would there be summary judgment to allow corvex to immediately round up votes -- no. maryland a very corporate friendly state. this was not a good outcome for some of the parties involved such as perry. it could be six months before you get arbitration on this and those shares also, i assume, down. >> david, commonwealth a lot of people are outraged. this pxp. we look at apache, they've got good numbers. anything in that area is on fire. they are stealing this company. i am interested in buying freeport if they can get it at this price because this is such a hot asset right now. >> you'll find a lot of people saying they don't see a lot of downside in pxp.

they may be willing to vote the deal down because they don't feel as though there's really going to be any harm in doing that given again the performance of the peer group. we'll see what happens on may 20th but that's the final. >> this is air gas. this stock would trade up substantially if freeport were to walk away. >> some other big movers today, apac is up 7%. you had weyerhaeuser on yesterday? >> one of the things dan fulton was saying, ceo -- japan. japan is coming back. no one talks about japan as a place other than as a currency, a short, a stock market that's phony. weyerhaeuser's timber is on the west side in the state of washington. there is a resurgence in housing in japan that's driving wy sglp tesla remains a big winner today. that's a 20% move for a name that had already moved 59% since

march. >> the bears have to try to get this thing down. pass around the goldman piece that just says this is way overplayed. they got to somehow lay a glove on the 21,000. they have to be able to get this thing down. this is just going to be the end of a couple of funds. this is a priority for shorts to get this thing down. >> market cap's closing in on 8 billion here. >> gm at one point was 8 billion on the way down to zero though. i do think that this company is a cold stock. we tried to analyze is on "mad money." i said cold stock, they can go up to the skies. people want to own tesla because they think it is the sierra club of stocks. look. this is for true believers. ideology is at work here. >> we're watching quintiles. they sold almost 24 million shares at $40, top of the range. raised almost a billion dollars. >> look. people have to understand, when

you see that pfizer is just kind of harvesting its older drugs, eli lilly, they have a lot of stuff in stage two, stage three, you need human trials. this is the way to do it. you don't do it yourself. you outsource it to quintiles. this is probably the most real company i've ever seen in terms of saying just go buy this if it comes around these prices. i don't like to pay up in the actual market because then they get hurt. >> we'll talk to the ceo in the next hour but i noticed you made that call pretty early this morning on twit person. facebook has a couple interesting pieces of news. there is a report there's in talks to buy ways. then the htc phone which at&t is now giving for 99 cents instead of $99. >> we thought the conference call was really good, stephanie link and i. everyone is crazy about ways.

people keep wanting to right off zuckerberg. it is just a very she-she thing to do. i think that this company's still got mobile. if you go to groupon, yelp, if you have mobile you are going to make it. a billion people are not going to be wrong. >> yelp, by the way, still double its call. very crowd floor, bob pisani. >> the important thing is, it's been a very busy day for ipos here. we've got five of them here at the new york stock exchange. we've got it would have them over at the nasdaq here. but there's not been a lot of enthusiasm. of the five, one priced below the one end, only quintiles at the top end. they're the largest biopharmaceutical development service business in the world.

basically they help companies once the companies develop the drug they help the company move it through the approval pipeline. that's the key service that they adhere. they were taken private ten years ago. and acquired by bain and tpg back in 2007. important thing here is the company -- looking at the metrics of the company, they've got a neglect native net tangibk value. they're pretty highly leveraged. as far as how we're going this year on ipos, it's been described as tentative so far this year. we've had a few high-profile successes but a lot of smaller names like some of the ones coming today, pricing has been a little combative. a lot of the investors obviously want somewhat lower prices and are not willing to pay up as we can see by what's been going on with the services right now. quintiles looking like a hit. right now $43, somewhere around

there for that particular stock. where's the market going? that's what everybody wants to talk about right now. s&p's up 2.2% so far in the month and the three pillars of the market are still there. everybody hates the rally. certainly professionals do. modest economic growth. hey, five-year highs in jobless claims? that's not that bad. two, modest earnings growth. 5% earnings growth seems to be enough for the market overall. of course we've got activist central banks all over the world, not just the fed but the ecb. a lot of talk they'll get even more active in helping out small and medium sized businesses over there here. retail investor may be getting more enthusiastic but the professional investor for the most part seems very suspicious an even actively hostile to the rally. that hostility may be the best friend other than the federal reserve that the market has going are for it. as for retail sales in april, folks, there's only 14 companies that now report retail sales out

of 120 publicly traded so the value is down but still interesting comments. overall, ann taylor said may was getting better. april a cold month. don't think it was particularly impressive. tjx up 7%. ross stores up 7% or 8%. overall pretty good numbers considering what's going on. >> thank you, bob. people at black rock and other guys have trillions. thanks, jim. first we had an auction yesterday that was a 10-year so there is a new guy that is the current on the run. there is a bit of comp distress based on yesterday's settlement which in many ways was the old guy. but none of that truly matters. what really matters is the next chart. you see the way we're moving up and have challenged the 1.80 level. now we've been talking about the

technical nature of 1.80 as a pivot. the left chart was defined by it, the right side is defined by it. this is kind of home based. in a very generic way. 1.62%. you end up at 1.80% right in the middle. if you consider that the dax, in my opinion -- if you want to know what's going on with risk on, risk off, with europe in general -- that's the stock market you want to pay attention to. it is hovering at all-time highs, in many ways similar to our stock indexes. however, it is flat today. most likely you're going to see some pressure on equities. just my opinion. if we look at foreign exchange, something interesting happened today. the pound had a lot of movement. bank of england did meet. they didn't change the level of quantitative easing. they didn't change the rate at a historic low. but look at how it moved in the last hour or so giving up a lot of its hard fought ground. but maybe the better way to benchmark what the pound is doing is against the currency that they refuse to become part of the club on so let's look at

the pound versus the euro. you see on this one-year chart that the euro certainly seems to be winning that, although of late the pound is making a bit of a comeback. the spanish chart that was there that i didn't mention, those yields were up nine basis points today. also augusters as those yields have been going down, we've seen risk-on. maybe it is a much more disguised risk-off day. it will wrap up the $72 billion in supply that i affectionately return to as the may refunding. jim, back to you. let's find out more about metals and energy. sharon epperson nymex. >> jim, we had a nice gain in gold on wednesday's session and we are seeing a a bit of a pullback today. the fact we are seeing a steady dollar is a factor but really traders are focused on data that came out of china. the weak data that it was has been somewhat bearish for the metals market.

slowing production is happening there, and cpi data is a factor some trades say could cause china to tighten its monetary policy to ward off inflationary pressures. that's something that they say is also a draw on gold prices. we're also looking at jobless claims data which fell unexpectedly to a five-year low. all of these factors pressuring the precious metal. in the energy market, oil prices and natural gas prices are pulling back. we did see another rise in oil inventories. in yesterday's data coming out of the energy department, it was not as great as so the analysts anticipated but still looking at record supplies of oil here in this country. in terms of natural gas we expect to see another injection there but keep in mind we are looking at natural gas prices that aren't getting any help from the weather and it is getting difficult for traders to see natural gas breaking above $4. back to you.

>> thersharon, thank you. the dow is up just over 20% from its november low qualifying for bull market status. you could have done even better by investing in stocks kicked out of the dow a while ago. we looked at 12 stocks that were once in the dow that still trade in some way since that november 15th low, they have gained more than 30%. the best performers in our departed from the dow club -- navistar, owens-illinois, aig and citi. only 2 of the 12 stocks have fallen since then -- sears an u.s. steel. other stocks in the club, all winners. >> how do you like that? they went to tech and they went to pharma. >> remember when they added intel and cisco? >> they went way too tech. i remember what it happened, i said, oh, geez. keep the industrials as industrials. those were all tremendous industrials you mentioned. the one they kept was alcoa

which has been horrendous. >> they always say people who try to trade a lot miss a lot. sometimes the index people do the same thing. >> you only get a couple days a year when the points are made. that's why you've got to be in to win. >> thanks to our statistician for compiling some of those numbers. great work, as always. when we come back, chief equity strategist sam stovall going against the tide. why he is predicting a pullback of 8% to 10% in his words, fairly soon. [ male announcer ] you are a business pro.

omnipotent of opportunity. you know how to mix business... with business. and you...rent from national. because only national lets you choose any car in the aisle. and go. you can even take a full-size or above. and still pay the mid-size price. i could get used to this. [ male announcer ] yes, you could business pro. yes, you could. go national. go like a pro. tdd#: 1-800-345-2550 hours can go by before i realize tdd#: 1-800-345-2550 that i haven't even looked away from my screen. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 that kind of focus... tdd#: 1-800-345-2550 that's what i have when i trade.

tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 and the streetsmart edge trading platform from charles schwab... tdd#: 1-800-345-2550 ...helps me keep an eye on what's really important to me. tdd#: 1-800-345-2550 it's packed with tools that help me work my strategies, tdd#: 1-800-345-2550 spot patterns and find opportunities more easily. tdd#: 1-800-345-2550 then, when i'm ready... act decisively. tdd#: 1-800-345-2550 i can even access it from the cloud and trade on any computer. tdd#: 1-800-345-2550 with the exact same tools, the exact same way. tdd#: 1-800-345-2550 and the reality is, with schwab mobile, tdd#: 1-800-345-2550 i can focus on trading anyplace, anytime... tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 ...until i choose to focus on something else. tdd#: 1-800-345-2550 all this with no trade minimums. and only $8.95 a trade. tdd#: 1-800-345-2550 open an account with a $50,000 deposit, and get 6 months commission-free trades. tdd#: 1-800-345-2550 call 1-877-994-7694 tdd#: 1-800-345-2550 and a trading specialist tdd#: 1-800-345-2550 help you get started today.

keeping a close eye on post 8 this morning. that shot right there as we await the opening of quintiles for trade. again, selling almost 24 million shares, jim, at a price of $40.

$43.76 is the quote from bob. >> within 10%. it is still pretty good. this is the sweet spot for pharma. this is what people like when they try to figure out what's -- pick and shovel, like the '49 gold rush. >> colorful corporate history, too. started by a professor back at unc in durham and public tpg and bain restructuring, now public again. we'll talk with the ceo in a few minutes. >> these pharma companies need to make their quarters. they need to be able to demonstrate that they cut their costs. all these big pharma companies always have lowered their costs because they take business to quintiles. they do it. >> a global business. 27,000 employees. they help develop or commercialize all of the top 50 best selling drugs on the market. >> just a remarkable company. i think it didn't get its due before. charles river i think is so

early stage and a lot of these -- only bioteches are doing really groundbreaking stuff. big pharmas just have to get those drugs out to the fda in order to make their quarter in year. this is the latest. this is the human trials. these guys do it. they're really good at their job. >> bob, you got some color from post 8? >> they're still standing here. this is one of the great things about this. all these are various employees of the company, of quintiles and $43.76 is what we started at. the important thing is of the five companies that went public today this was far and away the one with the most enthusiastic reception overall, priced at the high end of the range. talk was $36 to $40. priced at $40 and went public at $43.76. orange price talk was 19.7 million shares and they offered 23.7 million shares. again this is the largest biopharmaceutical development firm in the world. they're the kind of company that

once a company develops a drug they help move it through the approval pipeline. that may not sound like a lot of value added but it is an extremely difficult process. it is important to get a company through drug approval process as quickly and efficiently as possible. the thing about the ipo market this year, a number of them have been coming. it hasn't been a total disappointment in terms of the number of ipos. but actual pricing for most of them has been fairly tentative. there's a fight going on between the purchasers and sellers of these. until are you a fairly big name, there's been a lot of resistance. 4 of the 5 did not price above their range and one priced below it. market described as very tentative for ipos. no one is willing to overpay, particular lticparticularlticpae a lot of debt associated with them. >> the mark has been discriminating when it comes to

new issues. that's a healthy thing. >> that's positive. toomey today downgraded by citi. one of those companies that became public during a period that wasn't that robust. this a more robust period and still people are saying, i want this one, i don't want that one. we had a company called avi. the stock, no one really cared for it when it came public. it is up 44%. it is a real estate investment trust for skilled nursing facilities. kind of overlooked. next thing you know -- how many stocks are up 44% this year? yeah. skilled nursing facilities. quintiles' ceo will join us live at post 9 in a bit. we'll talk to tom pike. coming up -- this market will keep you moving if you can learn the tricks that won't keep you going in circles. cramer will give you some tips with six stocks in 60 seconds when "squawk on the street" returns. eam is of a better future,

a confident retirement. those dreams have taken a beating lately. but no way we're going to let them die. ♪ ameriprise advisors can help keep your dreams alive like they helped millions of others. by listening. planning. working one on one. that's what ameriprise financial does. and that's what they can do with you. that's how ameriprise puts more within reach. ♪ all stations come over tots more mithis is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet... dragon is captured. is connecting today's leading companies to places beyond it. siemens. answers.

stern ag saying this company is back. it is really well run. >> continental. >> eog has got better assets but harold hamm does a good job. i'd rather be in eog. >> credit suisse on oir. >> i like the call. >> wells on dupont. >> share book trust name. coleman has done a great job. i think this is finally in break-out mode. >> reviews of these aol numbers yesterday. >> i spoke to tim armstrong. lot of people are saying he didn't have the number. be careful, don't short this company. they've got a lot of videos. >> finally morgan stanley on sales force. >> sales force has been moert y mortified since they did the split. >> what's coming up tonight. >> we've got two -- we have open

table. i think open table's one of the most -- >> that's yesterday's show. >> those guys were fabulous. open table is one of the most -- i use it. don't know if you use it. then they represent the new way for young people to do business. get a little discount or get into a restaurant and they buy. ever since johnson & johnson screwed up with a lot of the consumer products, people buy the brand name. even my executive producer regina has been seen shopping and buying those knock-offs. can you believe it? >> no. >> are you going to stick around? >> yes. because the letter "q" is my kind of company. "squawk on the street" is back in a minute.

welcome back to "squawk on the street." march wholesale inventories,

up .4%. close to expectations. but, here's where we get a surprise. wholesale sales were off 1.6%. we're looking for unchanged up .1%. last month sales were revised lower from 1.7% to 1.5%. why is this so important? well, first of all, it is still a march 1 quarter. it will affect revisions for the end of the month for first quarter gdp but it is the same dynamic in europe. we're looking at good numbers. ultimate issue is will they translate into good sales, whether it's factory orders, industrial production or in this case inventories building. carl, back to you. >> rick santelli giving us some data. market getting off to a tepid start, not entirely a bad thing in the view at least of jim. >> i don't want this manufacture to leave people behind. people watching at home saying

maybe i should get involved, they'll get discouraged if it goes up 20, 25 days. >> even diimagine maggidimaggio. >> we have more data coming in from diana olick in washington. the foreclosure picture continues to brighten. we're seeing some of the best numbers we've seen in several years according to a new report from the mortgage bankers association. just 7% of all u.s. loans are now delinquent. that's up slightly from q4 but way down from a year ago. that slight increase is due to seasonality. actually things are getting back to a normal seasonal pattern. loans in the foreclosure process also fell to the lowest level since 2008 -- just 3% of u.s. loans in the foreclosure process. 2008 wasn't a great year but

still it was a lot better than the last five years. put that in total, about 10% of all u.s. loans in some kind of trouble. the worst part of this picture was the fha. loans in the foreclosure process at fha just continue to rise but the overall brightening of this picture is really what helped fannie mae swing to an $8.1 billion profit in q1 of this year. now they also said that profits were so good at the company that they're able to release a $50 billion tax credit. as you know, fannie mae has to pay all of its profits to the treasury. by the end of june they'll have paid $95 billion to the government. i asked the ceo of fannie mae this morning if this new profitability might affect the future of fannie mae and freddie mac and he said that there is a risk that policymakers will look at this profitability and decide that they don't need to do any reform of the housing finance system and he said that "would be a mistake." all the housing cronies i follow

on twitter are ablaze this morning talking about this new profitability at fannie mae and freddie mac and what that's going to mean for the two's future going forward and also what the government is going do with this billions of dollars that it is getting from the two mortgage giants. >> they've covered this so well. people at home are saying, wait a second, fannie mae -- this is really incredible. she's spot-on. >> it is amazing to see the number and hear them say we don't know if we're going to exist after conservative toreship. >> these guys used to be very profitable. this was a great stock for a long time. the more housing comes back, the more they'll pay to treasury. >> many thanks to diana. david faber is live in sin city at the sky bridge alternatives conference, has great guests coming up, david, as you did yesterday, too. >> thanks, carl. yeah, we're going to be joined fairly shortly by john bader,

about 13 billion under management, half in hedge funds, half in bank loan strategies. don't usually hear from this firm. also later in the program going to be speaking with kls diversified, jeff kronthal who has got a great voice in the credit markets. you may remember him from merrill and it might have gone quite differently if they'd have listened to mr. cronthal. and also john burbank. looking forward to those interviews. back to you. >> equities market, 15,100 now is the figure on the big board. our next guest is typically known for being bearish. david rosenberg, author of the economic report, breakfast with dave. good morning to you. >> morning. >> still bearish? >> well, you know, it's a bit of

a misnomer in terms of the bear label. the areas of the market that have done well are the areas of the market that have traded like a bond and everybody knows me as a bond bull. they do refer to me as an equity bear but i've been a bond bull. the parts of the stock market that i've liked all along has been that 40% of the market that trades like a bond. dividend growth, dividend yield, payout ratio, the income equity part of the market i've been encouraged by over the course of the last several years. to date they've been among the best performing sectors and i expect that will probably continue, too. >> i think that's very well documented. dave, what's interesting 1245 if you look at the rally since april 18th, however, you've got a change in the leadership, a new energy, financials, discretionary, technology, all up 5.5%, 6% as a composite.

that's a distinct rotation and those are not necessarily bond-like sectors that are now rallying. >> my time horizon really extends beyond two or three weeks, frankly. i look at the markets and the world from say 5,000 feet up in the air. wouldn't say 50,000 feet but probably 5,000 feet is appropriate. what had happened i think with a lot of the more defensive cash flow rich sectors of the economy that have been underperforming got expensive. this rotation is more a relative value play on a near-term basis. i still think that in an environment where you've got more disinflationary pressures than inflationary pressures for the time period, a period where interest rates are at ultra low levels, the focus on capital preservation and the preservation of cash flows across the capital structure are still going to win the day over time and they can't guarantee, by the way, that it is going to work every two or three weeks. but i think if you have a longer time horizon, the dividend theme is still going to be the theme that's going to work well over

the longer run. >> david, jim cramer here. isn't it possible that if you get europe turning and you get asia turning, united states turning, that the place we should be looking at are some of these cyclicals because some of them are still well behind the market. maybe they represent some value. >> you know what? when you draw up a scenario with a lot of "ifs," then of course it is a situation where it starts to draw your conclusions. europe comes back more vociferously, of course cyclicals will outperform. i think europe is still basically in recession. asian economies are slowing down. if asian economies weren't slowing down, then why would the bank of korea have cut interest rates today? i think we're still in a very fragile global economic market. i think we need to focus on preservation of cash flow. that's going to win the day. but the bottom line is that we haven't really spun the needle

in terms of where the economy is going. it was mentioned earlier what wholesale trade did. it was a few months ago people thought we'd have 4% first quarter growth in the u.s. before you know it is 2.5%. forecasters have taken their numbers down towards 1% for the second quarter. it is a discretionary economy but it is still very soft. >> what happens when interest rates rise? i mean we all know -- we talk about it so often that people have been forced into the dividend paying stocks because they can't earn money in the bond markets. that's where you started this conversation. if those interest rates begin to rise, market interest rates begin to rise, do people switch back into fixed income? they watch fixed income fall, yields rise, they switch, what happens? what -- are we safe at these levels? >> well, i think that -- look. there's no question that the fed -- not just the fed but the bank of japan, ecb, bank of

england, major central banks have had a profound influence on relative asset values. that may continue over the near term. i think it is a great question as to what causes the ball in motion to start changing motion. and it is going to be when we start to get not just the economic reaction sell ration but when we start to get actually inflation starting to rise. i'm starting to get more concerned in the future over cost push inflation. that certainly would be a factor causing interest rates to rise. when that starts to happen it is not so much interest rates rising, it is fact it is causing rates to rise. i think at that point you'll start to find a lot more inflationary hedges are going to start to outperform. everybody's maybe been selling gold, selling real return bonds. the parts of the market that you would screen for for inflation are probably going to be the places to be at that point when interest rates start to rise. that's probably down the road but it is probably something you want toooking at. it is not too early to be talking about in any event.

>> david, good to see you. thank you for joining us today from canada. david rosenberg. as we said earlier today, ipo, quintiles, first on cnbc celebrating that ipo. shares of the biopharmaceutical services company trading at $43.71, not far from the first trade after pricing at the top of the range. want to welcome the ceo of quintiles, tom pike, who joins us here at post 9 this morning. >> morning. >> pricing was strong, actually moved this whole thing up about a day or so because the response was pretty positive. >> we've had great reception to a great company, frankly, along the way so we're very excited about what's happening here today. >> for the investor who is not familiar with what you do or at least how much of it you do, what is the future for the outsourcing of trials given the share that you already have, the number of drugs that you already do test? >> basically for people to know, we really work on the whole life cycle of drug development, from the development of the product all the way through the commercialization of it.

we think we've got a great backdrop right now because of some stabilizing r & d trends and more outsourcing taking place. it is a great time to be where we are. the science is really changing. we're leaders in some of the science associated with clinical trials and we bring that throughout the process. so we are excited about where we are. >> tom, congratulations. this is a great company and i wanted to -- if you could put in context how much you saved big pharma. we see these numbers. isn't that because they're coming to you for expensive parts that they used to do themselves? >> yeah. every day, jim, what we think about is that value proposition for our customer, how are we going to save them a lot of money. and a lot of time. what we're really about is the probability of success. we know we're successful if we can help them with the probability of success, that's doing a trial faster, doing it more efficiently, helping them make better decisions. that's our laser focus on the product development side. >> i've always felt that the fda

likes you. if you do the test, they know that they're thorough. >> we have a great success rate. actually we are above the benchmarks associated with successful products. we're really proud of the 27,000 men and women we have around the world, they wake up every day thinking about how they can improve health care, making people healthier. we have over 1,600 docs and ph.ds. we're the size after teaching institution associated with that and we're in 100 countries. we're proud of the depth and breadth of what we bring to the pharmaceutical industry. >> what's the story of the restructuring? what changed from the last time, before you guys were taken private? >> i think we're a great story associated with that. we went private, made some changes to our business, restructured. we sold certain businesses like toxicology, spun out investment arm, came back to the public here. what we have now is a great foundation. we have the global diversity. we have the depth of skill.

we have the deepest customer relationships in our business and the most broad. so we at this moment thought it was a great time to come back out. >> can you speak to the state of the american drug industry? it looks like the gad the fda is starting to approve a lot of of drugs. >> last year they approved 39 drugs. we're excited that they are supportive in our view of really continuing to have innovation in drug development. and what we see is they are trying to clear pathways for certain drugs, and then still really try to drive the right safety signals of the more traditional drugs. >> how about run-away costs? we hear all the time from washington, the whole medicare system, drug companies, it's broken. are you saying that maybe we are doing something right that we weren't doing in terms of costs?

>> yeah. i think what we concentrate on is really trying to make sure that the drugs are safe, that they work, and that they're comparatively effective. we're really about the value of them. what we see, jim, i think there is really a great future. there's certain areas, certain types of issues that people have that we're finally really starting to get some really targeted medications for them and i think we're going to make some huge steps in the next -- >> at the same time, it is a really interesting moment in time what drug spending has actually not gone up for the first time in 55 years we learned this morning. obviously we had some big patents like lipitor that came off. does that affect the way in which you direct r & d or is it kind of incidental, the waves on top of the ocean, if you like? >> it is changing. we are becoming more efficient as an industry. companies like ours are really trying to help make that development process more

efficient and the commercialization process more efficient. we have at least 4,000 molecules in clinical pipelines right now and the key is to really develop them as efficiently as possible and then, frankly, that will be good for consumers as well. >> do you have to pay more for a single letter symbol? >> no. >> that's good marketing. >> no. we love the "q." we love our color. it works for us. we were very pleased to get the "q." >> tom pike, quintiles, thank you. jim, thanks for sticking around. >> someone this morning asked me, are you bullish? i said no, i'm proud. i think there are a lot of companies doing great things. this company is one of them. >> tonight, open table and perrigo. >> anything that makes the web get you an easier life, i'm on paper. google and procter & gamble, just a few names lighting up screens on the back of the sohn conference. some of those big hedge fund

managers indicating which stocks they prefer or could be shorted. that's next on cnbc. still to come, which luxury vehicle is being touted as consumers reports' best car since 2007. we'll take you inside "motor trend" and what they are calling the near-perfect vehicle. you will be surprised a little bit later on. ysis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity investments. our integrated technical analysis is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

the world's most influential hedge fund managers gathering in new york yesterday for the ira

sohn conference. >> it was quite the line-up yesterday, some of the biggest money managers sharing their ideas. kyle bass' bullish call on the yellow pages' company dex media has sent stocks soaring. two telecom names touted by keith meister, time warner telecom seen as an m and a target in the coming year and level 3 communications. also moving significantly was david einhorn's single pick, the natural resources service provider oil states international. einhorn spoke well after the bell yesterday saying the impact was initially limited but the name is up 4% this morning no doubt based on him and jana

partners filed their ideas as an activist for the stock last week. the impact was a little more muted on the shore side. seagate technology has seen weakness in the wake of a bearish call. some currencies suggested shorting are also down a bit, including the brazilian real and the canadian dollar. it is hard for one investor to impact a market as big as a currency so you would expect a little more limbed impact there, if any. >> a lot of commentary today on the quality of the presentations. cramer today suggested there was not as much inventiveness as you might have wanted to see. is that because all the easy trades are made? what was your take? >> well, there were a couple of hedge fund managers who went with very big, very liquid names. i'm thinking about druckenmiller with google. there was also bill ackman who almost had the feeling of trying to avoid making news.

he talked about p&g, his second largest holding. he's upsized his holding slightly since the last filing period but basically it is still in the same range. he talked about the strength of the company and why he thinks it is undervalued but there wasn't a lot new to be said there. i also noticed that some other managers really wanted to talk about the macro picture. a lot of them are quite bearish on the u.s. and the other g-7 countries in terms of bonds being wrongly priced and monetary easing being a huge ongoing problem. they really wanted to focus on the monetary and macro ills and the stock pick almost being tacked on at the end. >> that's a good point especially druckenmiller's presentation, choice words for bernanke. great coverage, kate kelly. still ahead, credit markets are as hot as they've ever been according to many. we'll dive in to them and look at the potential with john bader.

and find out why one chief equity strategist is wave iing red flag on the run-up and says we could have a correction of 8% to 10%. mine was earned in djibouti, africa. 2004. vietnam in 1972.

[ all ] fort benning, georgia in 1999. [ male announcer ] usaa auto insurance is often handed down from generation to generation. because it offers a superior level of protection and because usaa's commitment to serve military members, veterans, and their families is without equal. begin your legacy, get an auto insurance quote. usaa. we know what it means to serve. to appreciate our powerful, easy-to-use platform. no, thank you. we know you're always looking for the best fill price. and walk limit automatically tries to find it for you. just set your start and end price. and let it do its thing. wow, more fan mail. hey ray, my uncle wanted to say thanks for idea hub. o well tell him i said you're welcome.

he loves how he can click on it and get specific actionable trade ideas with their probabilities throughout the day. yea, and these ideas are across the board -- bullish, bearish and neutral. i think you need a bigger desk, pal. another one? traders love our trading patterns, now with options patterns. what's not to love? they see what others are trading -- like the day's top 10 options trades by volume -- and get ideas! yea i have an idea: how about trading that in for a salad? [ male announcer ] so come trade at the place that's all about options and futures. optionsxpress. open an account today and get a $150 amazon.com gift card when you call 1-888-280-0154 now. optionsxpress by charles schwab.

pressure is mounting on billionaire from a carnival cruise ship. two were discovered missing after the end of a ten-day voyage. this is the latest in a string of carnival incidents most notably since the concordia hit the coast and killed 32 people. they paid just 0.6% of its profit in u.s. taxes. last week senator rockefeller pressured the billionaire into

refunding u.s. taxpayers $4 million for dealing with two other incidents. on tuesday he wrote again to arison and his two biggest rivals requesting more information on passenger safety, security and health practices. "the cruise industry enjoys many advantages operating out of the united states, but the advantages to american consumers and taxpayers are less clear," said the senator. jay rockefeller continued, the responses will help congress make sure the rules governing the cruise industry provide passengers with a safe and comfortable traveling experience that they expect and deserve instead of giving the companies a free pass at taxpayers' expense." mickey arison last week. carnival is promising to spend hundreds of millions of dollars upgrading carnival's aging fleet of 101 ships. following that meeting, interestingly bob dickenson left

the board. he is a man credited with building the busy into the $28 billion behemoth it is today. "i don't have any specific cruise plans," he told "newsweek," but i'd like to find a way to stay in the industry which has been a part of my life for so many years." that left speculation he may not have left that board voluntarily. tesla, a day after the company reported its first quarterly profit ever, "consumer reports" doling out its highest score since '07 to the tesla model s. next the man who wrote that report will join us live. why one strategist is calling for a decent sized correction when we come back. ♪

♪ [ 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. ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ]

welcome back. i'm sharon epperson at the nymex. natural gas prices below $4 at the lowest price of the month. we are looking at natural gas prices that are impacted by the energy department's data today showing an increase in storage levels to 88 billion cubic feet, an increase of 88 billion cubic feet in the past week. that was the injection into storage for natural gas. now that number was within class range of 86 to 90 billion cubic feet but it was last year's number, above the five-year average and in fact we are looking at the first above-average storage injection that we've seen in about three months' time. keep in mind as we look at pressure here in natural gas

prices, there is not much to get in that gas above the $4 level traders say. you have temperatures in texas and the southwest that are berow normal for this time of year and meanwhile it is above normal for this time of year in the northeast. it is not going to be helped by the weather in terms of an uptick in natural gas prices. looking at storage levels right now that really also do not show that there is going to be perhaps any upside potential here for natural gas in the short run. again the low today for natural gas, right when the number came out -- $3.88. a one-month low. back to you. >> thank you very much, sharon. more indications of what's working in retail this morning. same-store sales are out for april. here to run us through winners and losers, courtney reagan. monthly same-store sales is now a shadow of its former self with just 11 non-drugstore retailers reporting. that's a strong contrast to the peak 68 retailers that reported in 2006. investors may be reading a bit more into the results because it is all they have between the quarterly results. that gap which report comes

after the bell, 3.7% increase in same-store sales but that's below expectations. strength out of the tjx and ross stores posting gains of 8% and 7% respectively. that's breaking a downward trend streak we've seen out of the two for the past year. wall street needs to decipher whether that's the beginning after new trend or a blip on the radar. costco missing expectations with a comp store sales gain of 4%. traffic was up but average transaction was day. changing gasoline prices and foreign exchange rates negatively impacted the period. l brands posted a rare miss with a comp sales gain of 2%. bath and body works was among the best performers. l bands issued guidance of 46 cents a share, that's one cent above the high end of its previously fraftd range. overall inventory appeared to be in check.

that's good news for investors. retailers were able to avoid unplanned markdowns. analysts think easter's timing helped april sales but the colder than normal weather throughout much of the country likely delayed purchases for many consumers. if we see a quick turn in the weather may could be a stronger month for retail. carl? >> courtney, thank you very much. courtney reagan. shares of tesla surging this morning after returning a first-ever quarterly profit. now "consumer reports" giving the tesla model s a near-perfect rating. 99 out of 100. that's far ahead of its direct competitors like the porsche panamera and fisker karma. fascinating review. my favorite line is it's what marty mcfly might have brought back in place of his delorean. you call it like crossing into a promising zero emissions future. walk me through what you like

best about it first. >> the point is this car does virtually everything well. imagine if you will the best luxury car that's roomy, quiet and comfortable. then imagine a great sports car that's fast and handles well, plus it has all the utility of an suv. >> the obvious question -- is it worth the $90,000? >> if you are looking at a car in a $90,000 range like the porsche panamera and some others? is really is. it is better than the competitors. the only thing about it is, though, it is an electric car and while it has a very long range compared to other electric cars, i can take a toyota corolla and can drive to cleveland from new york. i can't do that in this car yet. so you can only go around 200 miles before you need to charge it up. that is a severe limitation. >> you say if you leave it unplugged, you experience what you call a parasitic lot of energy that amounts to 12 to 15

miles of range per day they promised to fix, but how much of a concern is that? >> the concern is that this is a new vehicle from a new automaker and there's going to be growing pains. if you're looking for something that's really trouble-free off the bat, look elsewhere. but this vehicle, it looks like they're taking care of some of these things. as you mentioned, the car does leak energy, if you will, at night. normally you'd keep the car plugged in. but they're looking at fixing these things and hopefully it will work out the bugs as time goes on. >> jake, forgive me for catching up. when you give it 99 out of 100 points, is that 99 out of 100 points for being an electric car or is it 99 out of 100 points for all the cars in the world that you might possibly drive? >> very, very good distinction. this is not a wonderful, wonderful electric car. this is a wonderful car. so compared to really any other car, make no mistake, this is the highest rated in our testing, bar none. sedan, gas power, anything.

>> more than an asstton martin top rated porsche, or anything i could think of, this beats them all. >> it does. a lot of sports cars don't have the comfort, the convenience, they don't have -- twice as energy efficient as a toyota prius that this vehicle does. it really does it all. >> why not give it 100 then, jake? >> it's not perfect yet. if i could go and drive it across the country, if i could fill it up at any gas station in four minutes, maybe at this point it would be perfect but right now that's a limitation so really can't say it is a perfect car yet. >> i know the stock itself is not exactly your universe but we're watching tesla stock up 20%. it's had a huge run. the name elon musk is all over twitter today. if you are looking to buy it, you do have some practical concerns about whether or not you could actually get one of these things delivered within a reasonable time frame. do you think the company can make enough of these to satisfy long term demand?

>> well, i'm not the business analyst here but i do know that they have other products coming down the pipeline. some of those are actually even more interesting than this one. they're talking about an suv. after that they are talking about a much, much lower priced vehicle that's going to have a much broader following. that really could be a game changer in the market. >> have you done any calculations as to the cost of your electric versus the cost of what it would have took to take and put gasoline into the cars? overall savings, for instance? >> this is going to save you money on your gas bill, there's no question. it gets equivalent to 84 miles a gallon if you look at energy comparison. however, when you're plunking down $90,000 for a brand-new car, this car will not save you money in the long run. >> do i need a special plug orky just pull in anywhere and plug in the motel room or do i need a special -- >> you could plug into the motel

room but it would take a very long time to charge that big battery. >> won't be about as easy as us internet in your hotel. >> they'll set you up at home with a special charger from tesla. that will work. there are also super charging stations they're putting in different areas, working on corridor so you could -- i could drive from new york to boston, d.c., 45 minutes or half-an-hour you can charge about half the battery and tesla actually pays for the electricity for that. >> any idea why your experience and "the new york times" appear to have been so different? >> well, "the new york times" was looking at very, very specific thing about how far the range is and make no mistake, the range is a limitation. we are talking about how this car really performs and we do over 450 tests and this car really performs really impressively. >> you certainly did not hedge.

it is a glowing review. jake, thanks so much for your time. >> you are welcome. >> talking the tesla model s. >> are you perpersuaded? >> i don't know. i think it might require a test drive. don't you? >> i don't have a license so probably not for me. let's get a check on crude oil and the broader commodity trade. yes, it's commodities. natural gas we spoke about earlier in the hour. crude, 96. still relatively high given where we've been recently. a lot of that has to do obviously with what's happening in the middle east. gold, $1,466. up next, halcyon asset management chairman and ceo john bader. then we'll look beyond the market milestones. back in a minute.

[ male announcer ] this store knows how to handle a saturday crowd. ♪ [ male announcer ] the parking lot helps by letting us know who's coming. the carts keep everyone on the right track. the power tools introduce themselves. all the bits and bulbs keep themselves stocked. and the doors even handle the checkout so we can work on that thing that's stuck in the thing. [ female announcer ] today, cisco is connecting the internet of everything.

so everyone goes home happy. has a lot going on in her life. wife, mother, marathoner. but one day it's just gonna be james and her. so as their financial advisor, i'm helping them look at their complete financial picture -- even the money they've invested elsewhere -- to create a plan that can help weather all kinds of markets. because that's how they're getting ready, for all the things they want to do. [ female announcer ] when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you. wells fargo advisors. together we'll go far. bjorn earns unlimited rewards for his small business. take these bags to room 12 please. [ garth ] bjorn's small business earns double miles on every purchase every day. produce delivery. [ bjorn ] just put it on my spark card. [ garth ] why settle for less? ahh, oh! [ garth ] great businesses deserve unlimited rewards. here's your wake up call. [ male announcer ] get the spark business card from capital one and earn unlimited rewards. choose double miles or 2% cash back on every purchase every day. what's in your wallet? [ crows ]

now where's the snooze button?

welcome back to "squawk on the street." i'm kate kelly with breaking news on the embattled hedge fund manager phil falcone of harbinger capital. apparently he's going to be barred for two years from raising any new capital or associating with investment advisors. he will be able to remain chairman and ceo of harbinger capital though and continue to invest through pre-existing investments that he already has. he will has pay an $18 million fine, $4 million of which he is personally responsible for. so something of a victory. no admission or denial of guilt in this case. this is still subject to approval by a judge an to the s.e.c. commission so we'll see if that passes. we know that in the recent past some judges have objected to settlements of that nature. >> yes. that's big news right there. thank you so much, kate kelly at headquarters.

today marks day two of our coverage from the sky bridge alternatives conference or salt. david faber has not slowed down a bit. he he joins us from las vegas with another first on cnbc interview. >> not one bit, carl. that's right, man. i am still going strong, even won $40 last night. i'm joined by john bader. big firm halcyon management but you don't hear that much about it. perhaps a smaller profile. credit and hedge funds. you are the chairman and cio, very nice, first, to have you join us on cnbc. you've reallocated to a certain extent away from credit over the last few months. you were 70%. now i think you are closer to 50%. why? >> well, just to be clear, back in october we were a bit over 75% credit for multi-strategy investors. now below 50% as a percentage of equity. we've done that really because we've seen better risk adjusted returns elsewhere, not because we don't like the specialized less correlated credit things that we're doing.

in particular, we're pretty excited about a lot of special situations equities. focused especially on companies that are either reorganizing as real estate investment trusts or master limited partnerships. really for three reasons, david. number one, because on a pro forma basis there is significant yield support and a yield that's comparable to that you find in high yield. two, there's real room for appreciation in connection with the events of either reorganization or drop down of mlps. three, because there is further room for appreciation, if the overall yield goes down further. we've also been allocating opportunistically to m and a. >> it wasn't so much a call on credit, you simply saw better potential investment returns elsewhere. >> that's correct. >> talk a bit about high yield. that's an area we were talking about earlier today, the average yield coming down below 5% for the first time ever. i know spreads are still not bad versus treasuries but i am curious as a guy who follows

that market, certainly i know you've been very active in the bank loan market. what's your take on high yield? >> well, so long as the fed continues to ease high-yield spreads may very well continue to tighten but we don't like the risk/reward and we don't like it relative to the risk/reward in bank loans. in comparison typically bank loans are secured, they've got better leverage ratios, they are floating rate so you have some insulation against a rise in rates. better collateral coverage, better cash flow coverage. if i had to choose between bank loans and high yield today, bank loans are afternoon better play. >> i've heard that argument for many years now, somewhat to the extent i might expect that there would be so much money rushing in to this market you would have very little left on the table, so to speak. is there a lot of activity in this market or you still see opportunities? >> well, i think that bank loans are providing a yield that's comparable to a high yield. if you compare what you get in bank loans to what you get in treasuries, it's really not bad.

>> you bulk up on that part of the portfolio? >> we manage bank loans in a number of different vehicles. we have clos separate from our hedge funds. we have managed accounts and a fund which is unleveraged and one that leverages 2-1, and within the multi-strategy funds, if we have very short duration instruments we may leverage them. >> whether it comes to high yield, you aren't seeing risk/reward there. fair to say? >> yes. >> what about mr. bernanke and what about the printing press? where do you stand on that big credit picture that we all watch and wonder, when is it going to end in terms of the easy money and when are we going to start to see yields rise? >> i don't want to be on record predicting precisely when it is going to end, david, but i will tell you that any time that central governments print to the extent ours and others have, i think sooner or later it has to lead to inflation. that's one of the reasons we've

been reallocating to equity oriented instruments which is not to say we are still not very excited about some of the uncorrelated credit instruments. >> you recently added a natural resource. you're looking at that because you do believe inflation will come back into the picture? >> right. not in the short term. i don't see inflationary pressures just yet, but i think at a point in time we're going to see some inflation and that's one of the reasons we'd like to be in natural resources. >> how long are we talking about in your opinion? for years? five? >> you know, i don't think you're going to see it in the next six months but -- and maybe it is longer rather than shorter but there's so many different forces that could affect that. i think it would be intellectually dishonest for me to try to pinpoint it. >> i think you mentioned merger, r & d. there's not a whole lot going on there but have you seen

opportunities? >> we've actually opportunistically added materially to our merger strategies book. not so much in classic merger arbitrage where you are playing a spread and there is a lot of downside, but in situations where we think the where is we think the risk reward is skewed to the upside. we talked about your share of them on tv. >> yes, i have. >> you see it also sometimes in deals in which there's a heavy cash component and often times there's an opportunity both before and after the deal, before that stub equity is fully distributed to create the stub at very attractive evaluations. so the way we look at it is mergerscan provide a catalyst and that's where the opportunities lie. >> not that there isn't a risk in that. we have to leave it there. thanks for being with us. >> thank you. simon, back to you. >> oh, the joy of a little bit of inflation. ahead on the program, break out the bandages. rick santelli is tackling the rollouts of the affordable care

act. that's next. come? with fidelity's new options platform, we've completely integrated every step of the process, making it easier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. oh, he's a fighter alright.

since aflac is helping with his expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape. ♪ [ male announcer ] see what's happening behind the scenes at ducktherapy.com. [ male ann[growl]] see what's happening behind the scenes we used to live with a bear. we'd always have to go everywhere with it. get in the front. we drive. it was so embarrasing that we just wanted to say, well, go away. shoo bear. but we can't really tell bears what to do.

moooooommmmmm!!! then one day, it was just gone. mom! [announcer] you are how you sleep. tempur-pedic. welcome back to "squawk on the street," and today's rendition of the santelli exchange. you know, yesterday i had an

opportunity to interview richard fisher, and smart man. and logical sense. we covered a lot of ground. one area in particular we're going to get to in a minute is the amount of hours it takes with regard to processing dodd-frank. but before we get to that, think about allen greenspan back in the '90s. back in the days where i used to wear a funny jacket for the traders. i can remember he was the first person to look at the stock market and think it could reach many thousand points higher and the economy could grow much faster. and the reason, the silver bullet. productivity. it was all about productivity! but as we play the sound bite in a second, there is no hiyo silver productive. >> i do think dodd-frank went

way too far, it's way too complicated. that's the number of hours it will take to deal with the regulation put forward. and we're not finished yet. >> all right. what was that number again? god i love writing this number. 24,180,856 hours. okay. now you think that's interestinginginginginginging g i i have something more interesting for you. when it comes to patient protection and affordable care act, there is a tracker that the house energy and commerce committee runs. they call it the obama burden tracker. i would like to put something on the screen, please. basically it says the survey shows a total of 190 million hours of burden created by the affordable care act. all right. so let's get this straight. it's almost eight times that number. 190 million hours that employers

and families are going to have to spend dealing with it, and it's not completed yet. so i just want to leave you with one notion. google it. the empire state building roughly took 7 million man hours to create. so far, that alone, and it's not nearly done, is 27 empire state buildings. alan greenspan, what's the opposite of productivity? carl, back to you. >> ah, some people may have to watch a little less television in the coming years. thanks, rick. when we come back, stocks that solely make their money in the u.s. are slowly making money for investors, too. we'll tell you which ones coming up. [ male announcer ] with free package pickup from the united states postal service a budding artist can ship like a big business. just go online to pay, print and have your packages picked up for free. we'll do the rest. ♪

[ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room. [ static warbles ]

quick programming note. coming up tomorrow at 5:30 a.m. eastern time, our own steve liesman sits down with u.s. treasury secretary jack lew. that's ahead of the finance minister's meeting over the weekend. do not miss that tomorrow morning at 5:30. let's get to the 11. here's what you missed earlier on. >> welcome to hour three of "squawk on the street." here's what's happening so far. we've come a long way.

and through modest economic growth in the u.s., almost none in europe, a decreased level abroad. >> and the survey says, they drop dropped from a slightly revised 327,000. the rich people are making nothing. so they're the one who is are reaching. and i think that that ends badly. they should be reaching for clorox, for heaven's sake, not reaching for this junk. >> your big theme about the turn in europe. >> i'm having the pepper conference here. peppering the market with positives. >> you have been doing that for a while. >> yes. >> it's worked. >> went private. we made some changes to our business. toxicology. we swung out. investment arm. came back to the public here.

and what we have is really great foundation. this is not a wonderful car. so compared to any other car, make no mistake, this is the highest ratest car in our testing bar none. >> welcome back to post 9. got some breaking news. another content deal for netflix. our julia boorstin joins us with that news right now. julia? >> that's right, carl. netflix and the nbc disney television group have linked a deal for disney shows. you'll be a able to watch them streaming today. this solidifies the leadership content space giving netflix not hulu or amazon exclusive access. now this shows disney is generating incremental revenue

from the cable channel disney juror which was called an emerging franchise driver for the company if the earnings call earlier this week. now, carl, it's worth noting this move licensing a few very popular kids show fits into netflix's trend of cure ration. paying up for fewer shows that subscribers really care for. so if it works it's a win/win. they have to figure out the windows to make sure they're not cannibalizing the subscription tv services. >> disney hitting all time highs lately. netflix leading the s&p all this year. thanks, julia. julia boorstin out in los angeles. want to get to the markets down a little bit overlooking the jobless claims this morning. the dow hit another record high earlier today, despite the recent rally. our next guest thinks further upside of the market is limited.

sam is a strategist at s&p iq and looking for a pullback of 8% to 10% fairly soon. sam, it's good to have you. good morning. >> good to talk with you, carl. >> interesting note last night. you're looking at this from several angles. that consistents on the show quite a bit. alex young, our international strategist and our chief technician, they both mentioned to us na whether you look to a retracement or you look to a measured move off of the base established at that time frame it bridges us up to about 1650, 1660 on the s&p 500, and then he thinks that we probably could be morphing into a pullback of 8% to 10, and so really what we're doing is letting investors know we still believe the bull market

is intact and will resume. make sure they don't sell in a panic or you take advantage of the lower prices. >> i want you to remind people, sam, of your other recent quarrel. it was a few weeks ago now. it was looking at a rally you thought would extend itself at a time when others had more doubts than now. >> thank you, carl. i appreciate that. >> what was your call back then? >> yes, the call back then is when you look to the fund tamts, whether you look to operating or gap, et cetera, we're trading at a very attractive level. not as compelling as we were several years ago but trading at diskouptds anywhere from 6% up to 15% to historic lows. we're at a very mild inflationary environment. we really have nowhere else to go in terms of investor

attention. and so the feeling was that because there were a lot of disbelievers out there that we probably had further to rise. now it seems to be let's pick on the bears. you can probably come up with a contrary indicator of a number of interviews. that would say that maybe now is the time for digestion. >> that said, you're not the only strategist trying to make sense of the markets here. i want you to hearl what merrill lynch said this morning. the risk of a melt up in stocks is high and rising. positioning, price action, policy and a range bound economy can conspire to cause an overshoot. i wonder if you're hearing that more often and how do you get around that point of view? >> well, yes, you are hearing that, and what it really reminds you is sometimes you don't want to try to be too tricky because fear is the overall motivator. fear of losing money on the way

down and fear of losing out on the way up. so i'm telling investors to pretend i'm a pilot who says fasten your safety belt. i'm not saying dawn your parachutes. use an opportunity to get rid of very expensive, very high fliers and swap them into attractive areas that have not participated in this rally. >> so you're not afraid of someone selling a defensive staple and buying an stral or buying a minor, something like that. >> no. example. s&p's i.q. analysts ranked best on the street report, it's now at a relative strength of 97 and we think a better opportunity is in qualcom and ditto for kb homes and buying into something like cooper tire.

>> you say you think investors will be less tolerant of future economic or fundamental misses. the data aside from good labor stuff lately, markets looking past it. >> they have been looking past it. next week we'll get number in retail sales. that's probably built in. but i would tepid to say that right now with the s&p 500 being more than 11% above the role in 200 day moving average and the average of that spread is only about 2% going back to 1995, that yeah, we are a bit stretched, and we do disappoint, the response could be pretty swift and sharp. sam, it's a good note. everybody should read it. it's good to see you again. >> my pleasure, carl. when we come back, two of the street's heaviest hitters. one of them manages $4 billion.

we'll find out what they had to say about stocks and where they're putting their money. getting ready to travel and hoping to cash in your frequent flyer miles? why it may not be as easy as you think coming back. the american dream is of a better future, a confident retirement. those dreams have taken a beating lately. but no way we're going to let them die. ♪ ameriprise advisors can help keep your dreams alive like they helped millions of others. by listening. planning. working one on one.

that's what ameriprise financial does. and that's what they can do with you. that's how ameriprise puts more within reach. ♪

take a look at the industrials on the s&p. slightly higher. up 4% for the week. josh lip on the with more on

that. josh? >> check out pcp hitting a new all-time high today. your best performer in the s&p 500. shy on the top line. this company makes metal kpoebts for aerospace. aerospace makes up the bulk of the sales. sales grew by some 40%. organic growth of more than 10%. that stock up about 8% right now. carl, back to you. >> josh, thanks so much. now to the must-see interview of of the day. >> hey, carl. that's right. we have equities and credit. we have it all here. john burr bank, who has joined me before, always nice to see you. long successful hedge fund and kls diversed, haven't actually talked to you in a while, jeff, after your great calls back on

the old strategy session on treasury. let's start on credit, if we can. a lot of people were talking about the great rotation out of bonds into stocks. do you buy that? >> well, we haven't seen it. there's been a great rotation of cash in the risk assets. you look in high yield bond funds. the lows have been marginal. loans have been extremely strong in historic records. we haven't seen that at all. we've been a big believer that high yield has been cheap throughout most of the year, coming to a view that it will get to be pretty fair value at this time. >> you do believe it's getting to be fair value. why? >> spreads have moved enough that when you start looking at what expected default rates are, kind of the expected risk premium, looking at losses, you're getting towards fair value. we continue to think the default rate is going to repain very, very low. >> and john, any thoughts of bonds these days are you firmly in the belief that the equities are the way to get return?

>> the big trend is to get yield however you can do it. equities offer a better yield with growth than bonds. people shouldn't confuse the equity market with a proxy for global growth or successful economies or whatever. it's just that equities are now a better risk reward than they were before. and that's after investors took credit basically beyond par. and so now we're looking at where to put the money in equ y equities because not all equities will do well. >> they have been doing better. but some believe if we do start to get growth, maybe those start to lag. >> so people wan to fight this trend. they want to fight most new trends. the trends towards defensive stocks, towards yield safety is not normal. it's lasted for two years here in the equity universe. i think it's going to last for three years more. i think this is the big trend.

>> why do you think it's going to last for three more years? >> why? because i don't think the world is going to grow that much. the liquidity that's being issued is going into yield products. into bonds. it's not going into big investments, you know, in infrastructure. it's not causing a lot of new growth. the opposite is happening. china is moving the opposite direction. western governments are moving the opposite direction in terms of austerity in fiscal prudence, not spending lots of money. >> they're printing lots of money. do you agree with that assessment? >> yes, i actually do. when you look at everything that's fwoen on and certainly revervs har reserves have picked up, you really haven't seen the monetary bases not growing. it actually shrunk in the first quarter. so, you know, a lot of this money is going towards consumption. that's why deficits are going

up, transfer payments. and the savings rate of consumers is coming down. it's gone from mid 4s back down to 3. so some of the wealth effect is showing up with consumer spending. >> so does that mean we don't get inflation? >> i'm not a believer we're going to get a lot of inflation. some of our favorite trades are things like short deficit. we think the market is overpaying for inflation. the world thinks inflation is coming and people are paying over fair value. >> if you believe this is a trend that lasts for a few years, what are you doing. what are you buying you want to own world leaders. more likely to have some growth. liquidity. dividends. good locations. they're not beneficiaries,

they're groebl growth they don't need the whole world to grow the way equities do or even emerging market equities do. there's been a big distinction between the s&p and the merging stocks the last two and a half years. people want to play catch-up with the commodities and risk your securities. they're fighting the trend that has been established the last two years. so i think the orld is not going to grow very much. i don't think the western governments are going to come up with great policies that lead to big massive long-term bets. in fact, i think it's the opposite. >> you do? >> we're not seeing significant top line growth so what you are telling me is they are going to continue to cut costs and deliver on the bottom line. some are wondering how long that can keep going. >> the irony is is with the s&p and these companies in the u.s. is if you -- if there is wage inflation, then problem margin shrink and the equities are

going to fall. so that's a big question. profit margins are far higher than people expected them to be and they've been maintained. and i would say the growth is increasingly harvesting richer consumers for around the world, leading u.s. companies. so i like the general prospects of world class companies. i don't like the prospect of average companies. >> how do you determine which is average versus which is not. that's where you get paid. >> if you compare what's in the s&p top 20 and what's in the emerging market top 20 the difference of quality is enormous. there's a lot of commodity markets, a lot of government controlled companies, a lot of chinese banks in those indices. i think this is a distinction between quality and lack of quality. and inflation is measured in labor and commodities there isn't the inflation people expect. people do know there is a basement. essentially the basement of their currency.

so i think the money is going to risk high quality assets around the world. it's the same as emerging markets putting money to buy expensive markets or houses in safe places. it's the same as buying collectibles or art. it's buying things with scarcity value as opposed to most things that the supplies increase. >> talk about the basement of the currency not to mention capital flight. >> well, japan's currency post 2008 rallied a lot. the economy struggled for a long time. what you are now seeing is a change of policy. and that certainly ha had some effect on currency. as we think japan is going to go further. >> they've gone beyond. >> well, they've afounsed it. but we don't think the currency market is all that in yet.

>> so is it deflation nar, these things? >> absolutely. you're going to make the u.s. dollar stronger. you're going to have cheaper imported goods relative to u.s. goods. it will keep a cap on inflation in our view. >> we can't end without getting a prediction on rates. you have been dead on in the past when others said you are out of your mind. i don't know what we are. 175. something on the ten year. i would assume you're not looking for a big hike in yields given everything. >> no, we're not. we think we're in a range for a while. some of the this things going on are very interest rate sensitive like housing. and some things that have propelled earnings is refinancing into lower rates. we think the economy is sensitive. we think we have a training range probably between 150 and 2% for quite a while. >> talk about every year coming in and people saying it's going to be difference and it's not. thank you, both. >> thank you. >> back to you, carl.

>> a terrific interview, david. really great stuff. thanks so much. i have breaking news. you are looking at a live shot of a news conference in brooklyn, new york. we are learning that the u.s. attorney's office busted a crime ring accused of essentially carrying out one of the largest bank robberies in history. >> that is loretta lynch announcing a massive 21st century bank heist, by massive we're talking $45 million. they got away with in a matter of hours just in new york. eight people indicted. seven of them in custody. all dominicans from the new york city area. basically what they hope to have done is hacked into mastercard and credit card processers in the middle east, that allowed them to go to atm ma seens across the area and around the

world and make off with millions of dollars. all right authorities say they've seized cars, watches, hundreds of thousands of dollars. they say this was the new york area sell of a global cyber fraud operation known as operation unlimited. we're continuing to follow this news conference, carl, and we'll keep you posted. but one more sign that cyber criminals are finding they can get a lot done with a laptop computer than they can with a gun and a mask. >> some of the reports about this, scott, just to give people some cover, this kind of execution, really we have not seen before. >> no. and what's striking here is the global nature of it. the connectedness of it, the fact that you at least according to the charges here have a ring operating around the world. and we r with tremendous fees and able to hack into bank and credit card processers to have

their way with whatever money they wanted. as i said, operation unlimited. it did away with all the the withdrawls. >> that's incredible, scott. i'm sure we'll get more information as theest attorney continues to speak. thank you, scott. when we come back, why your request to redeem your frequent flyer miles may have more in common with hunger games than a relaxing travel experience. why they may never be in your favor. and later groupon serging on earnings of euphoria, but can it last? #

♪ ♪ the new blackberry z10 with blackberry hub and flick typing. built to keep you moving. see it in action at blackberry.com/z10 since aflac is helping with his expenses while he can't work, he can focus on his recovery. he doesn't have to worry so much about his mortgage, groceries, or even gas bills. kick! kick... feel it! feel it! feel it! nice work! ♪ you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape. ♪

[ male announcer ] see what's happening behind the scenes at ducktherapy.com. dave's always wanted to do when he retires -- keep working, but for himself. so as his financial advisor, i took a look at everything he has. the 401(k). insurance policies. even money he's invested elsewhere. we're building a retirement plan to help him launch a second career. dave's flight school. go dave. when people talk, great things can happen. so start a conversation with an advisor

who's fully invested in you. wells fargo advisors. together we'll go far. . >> ever wonder what the odds are that you'll be able to redeem your frequent flyer miles for an

actual seat with your favorite airline? well, it might depend on the carrier. our phil lebeau has a lot more on that story. >> i get this question all the time. will i actually be able to get a seat. the folks put out their frequent flyer mile reward survey. the value liners do much better. there you see southwest in their survey. 100% of the time you were able to find a reward seat. by the way, 22 airlines worldwide were in this survey, and towards the bottom of the survey, that's where you're going to find the legacy airlines including united, alaska, america. and dead last is delta and u.s. airways. 36.4% chance of the time you're going to find a frequent flyer seat. why the difference between the value and the legacy airlines? it's hard to find seats because the airlines have merged. there are a lot more people in these programs. look, american is going to have 100 million at least in their program, and the likelihood of getting upgraded with miles is

also limited because of tighter capacity. they just don't want to give up the first-class seats if they don't have to. and finally the likelihood of you getting a frequent flyer seat on a value airline, it's 96%. in part because these are smaller, more nimble programs. >> there's a lot of miles chasing each reward seat, and i think that the lower cost carriers just don't have that, i guess you could say baggage, associated with them. so they have fewer miles or points chasing rewards. but i also think that they generally are, are newer programs and they've adopted a more streamlined approach to reward redems. >> take a look at the airline index up 51%. airline stocks have been on a tear. they are being more judicious. some are saying too judicious about rewarding the frequent flyer seats. >> we had anderson yesterday. but people know when there's consolidation, there's going to be an effect on the consumer.

this is just one more wrinkle. >> absolutely. in terms of getting bumped, a lot of people say, that's fine. i'll book a coach seat and get bumped. the airlines know that. so they're saying to people on the last minute, would you like to pay to get upgraded? that way they will get some revenue as opposed to you saying you're an elite flier. come and sit for free. >> incredible. great metric. phil lebeau in chicago. we're going to get the european close in just a couple of minutes. don't go away. at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity investments. our integrated technical analysis is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account.

the european markets are closing now. we continue to watch for signs of risk on, risk off. >> yeah, finland, norway, austria, switzerland all closed to mark the 40th day. for those that traded, we're still around the 2008 highs. yes, the dax has broken to reco highs. actually, the economic day fa was not great today. a survey indicated now the expectation of a contraction in the euro zone economy of 0.4% for the year. but we are comfortably numb tu to the likd we. the the third member of the ecb raised the prospect of interest rate cuts. another survey indicated that won't happen. spain continues to rush out paper. it had a triple bond sale today.

they managed to get more paper than they were expecting. they were a rumor there could be a syndicated offer coming next week. that's an awful lot of supply for the market. we twaul saw yields come back today. the important thing to point out here as far as the bond market is concerned in spain is the degree to which the extra hold on spanish bonds over german bonds, say, the spread has fallen from 6% to 3%. that's the bigger picture. the other notable thing that happened today is political. it happened in the u.k. where prime minister david cameron rounded on his critics within the conservative party to suggest there's no need to leave the european union and they can reform. they're not part of the euro zone. 27 countries there. and he says, you know, we can do

this. we can do a better deal. though there are now again loud voices, strong voices within the zone party that say a better deal can't be done. now in advance to the referendum in 2016. >> touk about a hot button issue. >> back to thatcher, right? >> thanks, simon. bob pisani is watching a market that's almost exactly flat on the dow. >> the up trend is still very much apparent. jst put up the sectors here. when you get your market leadership group which is technology, material, either side of 1%. that move today. but the up trend is still very much in tack. it really ended on april 18th.

energy, materials, technology stocks, all moving to the up side. consumer staples have been a downside. and this trend is still very much intact. overlaying this there are a few sub sectors shining examples of improving economy overall. biotech has been fantastic this year. there have been a half dozen names knocking the cover off of the ball. home builders are up 20%. and even aerospace is outperforming. it's the commercial space part that's doing so well and continuing to shine. and finally, carl, people keep coming up to me and saying i don't understand how we have a market going up every day. it's not hard to understand why the market is going up.

then you have a search for yield. 5% seems good enough. you also have heavy fed bond buying. you this together and get a stock squeeze. you get much higher demand for stocks and constricted supply for stocks. supply and demand. i don't think it's that hard to understand why the market is going up. so far the s&p is up 2.5% in the month of may. it ain't working. >> thanks a lot, bob. bob pisani. the s&p is up nearly 12% this year, but there's a group of stocks actually doing better than that. seema mody has that. >> reporter: if years they have been focused ongoing global. but the companies stayed home may have had the last laugh. there are companies that generate 95% to 100% of revenue

within the united states. these are the things you just can't outsource. your local bank, electric company or your local pharmacy. these stocks are up 15% this year compared to the broader index. the sold in the usa portfolio. since the companies sell most of their goods and services here in the united states. this portfolio is outperforming the s&p 500 on both a 12 and 24-month basis and year to date beating the s&p by a 3% margin. what names made the list? the biggest names are at&t, wells fargo, verizon. and the top sectors are financials along with telecom and utilities. investors hunt for yield in the environment. there really several reasons why they have been popular.

amplified by april's strong jobs report. europe is still in recovery mode from the debt crisis and emerging markets like cha na are witnessing slower growth. the merrill lynch global research team making a point. they're starting to see the trend reverse. that will be something we will have to continue to watch. >> everybody is watching rotations. no question about that, seema. thank you so much. groupon shares up 10% this morning as the company narrowed the net loss. 8% from a year ago. this was the first earnings release since the firing of cofounder andrew mason. the group trying to spark a turnaround. we have a buy rating on groupon. . you make the point if this is what it takes to get 10% on the

stock today. it shows you how far he had gone. >> it's like one of those scenarios where the college football team is going to play on saturday and you're just hoping that that jock can pass consumer math to be cleared to play on the field. that's what this was. the bar was so low they were able to pop it even though international was still a mess. they have good stories. they've doubled the mobile buy in the past two years to 40%. so that's a good story. they've cut the loss. they're focusing on core deals and they've got some decent veteran operators in place. they proved they can provide the next challenge. showing they can survive. you have a $9 target at the last check. what do you think the future hoil

holds? >> i think the future is bright for this company. we believe in the model. i agree this company is operating below the potential. we think that margins can double from the present level. and of course they have to execute and get there. but international is a low hanging fruit. structurally they're operating in 48 different countries, 500 different markets, and this is only a 5-year-old company, generating $5.5 billion in merchant billings. they've grown too fast and everybody knows that. they meet the unifications of different countries on one platform. i think margins over time will get better. this is a high beta stock. it's not for everybody. i think fundamentally the model makes sense. i think this company will do well. >> you make the point mobile is what, i mean, you always want to watch companies leverage to

mobile. and zillow comes to mind. groupon does have option to use on their device. >> 45% of their north american transactions are coming from mobile the average mobile customer is spending more than 50% than the desk top customer. this is a great opportunity for them. mobile is a natural extension of what they already do. that's where the world is headed, more mobile. and these guys have that figured out. to me that's another positive. are they in a hurry to find a permanent ceo? >> well, they said they're not. they're getting the house in order and once they get

everything squared away it will be easier for them down the road. and i completely agree on the mobile story that is the thing that can get them back in the mobile grow area. they are saying for a long time people are willing to spend more on their phones than they ever thought was possible. and the other thing is fewer people are buying via the e-mails. a lot of them are on their phones and browsing the deals and buying them, anything they see. so there are some good stories there. your analyst is right on that. >> just as a side, someone sent me the groupon for new york today. a package tour of new kids on the block with guests 98 degrees and boys ii men. is the relevance getting better? it's taken such a knock. >> that's a great question. what you're referring to is

personalization and smart deals. over time, you know, much better. and in the u.s. they are doing a good job. internationally they haven't started. it was redrently introduced in the uk market. imagine the opportunities when people are getting e-mails 100% more relative to what they're dealing with. >> guys, an interesting story and certainly getting a lot of attention. >> thank you. >> when we come back, gary kiminski will join us. he'll tell us which stock hedge fund billionaire john paulson loves and you should too when we come back from a break.

are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers.

♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good. ♪ [ agent smith ] ge software connects patients to nurses to the right machines while dramatically reducing waiting time. [ telephone ringing ] now a waiting room is just a room.

[ static warbles ] ♪ heading back to vegas this morning. checking in with morgan stanley's vice president of relt management, one attenwho helped put together the event five years ago. great to see you. i wonder what the basic message is that you're getting so far. >> hey, carl. good morning. the basic message is everybody is here to learn something.

it's been an incredible learning experience across everything. i came down to the set here. i had breakfast with the author of this book, the best selling book. was there for the kill of bin laden. talking about discipline. talking about how real cent it is to invest. and believe me, it is. and i must tell you last nigh i attended what can only be described as an epic dinner event with hedge fund managers. we had al pacino there. we had leon panetta who walked us through what happened. we had david faber there with me. it was an event where you get the thinking and the cross logic that goes between, all these various different profections. they all have a common theme for the best execution across the

board. john gets a loss of press for the obviously disastrous bet on the gold fund that he has. but he doesn't get that much s onbeen a successful credit recover recovery fund. i want to bring it up for a reason. is that fund is up significantly this year. also made a very major investment in mgm at the same time. now why do i bring up mgm? you'll remember from this conference, i had a great interview on "squawk on the street" at this time, with the ceo of mgm, who i got to spend time with yesterday. and here's a very interesting story. we talk about mgm as an example of a company that was benefitting from qe. if you recall they took out significant, significant costs in capital structure. 5 billion in debt refinanced with lower interest rates. they created a huge win for the

bondholders and now is the time for the equity holders to be rewarded. let me give you a sense of what's happening. the incremental leverage in this hotel business, owning bell garks io and 42,000 other rooms in las vegas. you put a $1 increase in room rates, 100% fall to the bottom line. paulson is right here. i think mgm is a stock with huge operating leverage if the recovery in the economy continues, and certainly the recovery in the higher end of las vegas. yeah, more than incremental upgrade to bb. that's a big move in a name that large. >> right. and the viewers paid attention to jim, you know, he sort of predicted it on this air a year ago. and so it's something that had credibility because of the execution and the execution took place. operating leverage. bond how olders were rewarded over the years.

the equity holders, another thing you and i spoke about significantly. mgm, big time winner here. >> a lot of people will understand what coach k can bring to the mindset. what did pacino say? >> he didn't talk about the roles that he had taken. but the opportunities that he had that he didn't take. and when you are at the level that he is at you would think you can do whatever you want, take whatever roles that you want. but he talked more about the rol roles that he passed on. when panetta was talking about the movie that came out "zero dark thirty" may favorite thing is why couldn't pacino have played me? everywhere i wept, people were saying to me i didn't realize you lost so much weight.

so it have fascinating. and this event is really remarkable. he did the opening shot behind me. i'm going to with lee, just on air in a little while here. there's not a single person that's been in the investment business that doesn't learn something here and why it's so important and why it's great that cnbc brings this to the viewers. >> yes, we're all jealous we're not there too. obviously, we try to bring what we can through the power of television. it's great seeing you out there. >> yeah, i'll see you next week at the nyse call. have a great one. >> all right, sounds good. amc network is hitting a high today. >> amc networks showing some green this morning. first quarter earnings beat revenue rises 17% to $380 million. the company also talking about its show "the walking dead." "the walking dead" became the number one show for the broadcast season for adults 18 to 49, for all of television.

a first for any cable series. the stock up about 3% right now. up about 33% this year. carl, back to you. >> it's a phenomenon is what it is. that's incredible. thanks. when we come back, share, of green mountain coffee seemingly back from the brink, up nearly 200% in six months. is its new bigger tedeal with starbucks a signal to buy? it raises the price of fishmeal, cattle feed and beef. bny mellon turns insights like these into powerful investment strategies. for a university endowment. it funds a marine biologist... who studies the peruvian anchovy. invested in the world. bny mellon.

coming up next, live from the salt investment conference here in las vegas, billionaire hedge fund manager leon cooperman is our guest host for the full house. from tech to energy, he's going to reveal the names that are helping him beat the market once again this year. so we're also talking to double line's jeff gundlock on why he's still long treasuries, abnd he spent years learning before going out on his own, michael karsh on what stocks he is buying now. we'll see you in a few. >> green mountain coffee is surging today. up sharply after the company beat expectations for q-2. announce s its expanding its del with starbucks. he has been following it from the beginning. hi, herb. >> hello. this is a case of a deal trumping the numbers. in this kind of market with the heavily shorted stock, that's all it takes to get things going. now, yesterday, green mountain

announced a five-year expansion of its current partnership with starbucks. what's not known is the economics of that deal, which could not have been timed better for green mountain. without this deal, it is fair to say this was not really a good quarter. sales growth continue to slide. growing just 14% compared with 37% the year before and 15% the quarter before. the company also guided down sales for the third quarter and brewer sales fell, tumbling by 9%, which the company concedes was more than expected. earnings easily soared past expectations and earnings guidance was lifted. but much of that is from coffee and labor costs which are actually lower. leading to the big question going forward, carl, unless business sharply improves, what will green mountain do for an encore the next time it reports. >> yeah, herb, you know, a lot of big-name bears out there have

made big public stances on this stock. what's their response today? >> just chatting around to people who have known this name, i can tell you that i haven't heard a single person say -- show any real sign of concern other than the stock is going up. they seem to not understand why the street is doing what it's doing because they're look being at the fundamentals and really questioning what's really changed with the starbucks deal. >> your point about the coincidence between that starbucks deal and the quarter is not lost on us, that's for sure. herb greenberg, back at hq. we'll recap some of the big movers. [ male announcer ] with free package pickup from the united states postal service a budding artist can ship like a big business. just go online to pay, print and have your packages picked up for free. we'll do the rest. ♪ we'll do the rest. everybody has different ideas, goals, appetite for risk.

you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses. read and consider it carefully before investing. risk includes possible loss of principal. governor of getting it done. you know how to dance... with a deadline. and you...rent from national. because only national lets you choose any car in the aisle... and go. you can even take a full-size or above,

and still pay the mid-size price. this is awesome. [ male announcer ] yes, it is, business pro. yes, it is. go national. go like a pro. yes, it is. are you still sleeping? just wanted to check and make sure that we were on schedule. the first technology of its kind... mom and dad, i have great news. is now providing answers families need. siemens. answers. how do traders using technical analysis streamline their process? at fidelity, we do it by merging two tools into one. combining your customized charts with leading-edge analysis tools from recognia so you can quickly spot key trends and possible entry and exit points. we like this idea so much that we've applied for a patent. i'm colin beck of fidelity investments.

our integrated technical analysis is one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. a quick programming note. tomorrow starting at 5:30 a.m. eastern time, we sit down with the treasury of the secretary, to secretary of the treasury, jack lew. a cnbc exclusive ahead of the g-7 finance ministers meeting over the weekend. take a look ats at the th s att. 25% upside today after the company reports their first profit ever. a big review of the tesla s in

consumer reports of course. 99 points out of 100. a glowing review that has a lot of the short interest under fire. and then monster beverage missed by 9 cents. and operating expenses were much higher versus a year ago. let's get to las vegas. scott wopner and "the halftime." carl, thanks very much. welcome to "the halftime show" life from sky bridge conference here in las vegas. on the program today, leon cooperman, michael carson double lines jeffrey gundlock. pete joohn here to help us navigate. let's get straight to lee cooperman who continues to beat the market, up double digits already this year after being up