>> are stocks cheap? a rule you have probably never heard of says they are. you will hear about it here. the bloomberg breach. the developments on the story that has rocked wall street. why america's lousy infrastructure is making los angeles look really bad today.

>> a minor cause. and the other two are now negative as well. hit a new 12 year high with the 11th consecutive session. that is the first in history. that could be the 18th consecutive up tuesday. i also want to call your attention to barns and noble. we will bring you more as soon as we get it. lots of chatter and it's getting louder. let's get to mary tompson. to what degree is the market shrugging that suspect off? >> talking to some traders, some say it's a bit of a factor in

today's trend that we're seeing. not the only factor but one of them. one trader was telling me that traders were saying maybe he will outline it during the speech. the fed will start to ease its monetary policy. they say one reason that some of them think that the markets are down is you have a little bit of buyers fatigue right now. >> thanks for setting it all up. >> are the markets fairly valued right now? if you look at the so-called

rule of 20, the answer is no. what is the rule of 20? i'm glad you asked. it's a rule developed by the isi group and it says add in the inflation rate. almost always 20. if this combined goes over 20, it means markets are overpriced. the stock market as a whole is underpriced. >> pe is starting to expand in the market. talk about the last five years we have seen lower than average returns. so we start to see some key

expansion going on. inflation remains relatively low. that's driving a lot of money towards the bond market. morning star had a report out there. this is the most bong manders investing. there is a mass if amount of cash. this has been a reluctant market. >> i will just push back a little bit. if we change the earnings

expectation or maybe raise inflation expectations. it is going to be positive for the market. most important, inflation, look at the gold market. gold is telling you that inflation is not a big market. inflation given the slack in the market does seem to be a major factor at this point. >> talking of gold, is this a gold market right now? >> if you take the other side of that, one of the reasons we have

such low inflation right now if it comes from currency that will be the problem. inflation is coming because of pick up in demand. we started to demand more goods and services. we constantly hear people talk about the 25 or 50 year average. what doesn't come into play there is both inflation and what the ten year is yielding. with no signs of inflation currently, i think that a multiple is arguably very cheap right now. it should be north of 17 or 18. >> mandy hit this to the top. maybe tapering down.

what is the single most important item on your trader radar right now. we have two home builder etfs. that has provided a lot of velocity for the market. they're going to be reporting earnings and the stock has been jumping 20%. we get other housing data this week. housing in starts and permits in april. we have been watching west texas rally against brent. we're watching a spread come in. why is this important? this is bad for refiners. refining it and sending petro

overseas. it's not profitable for them to do that any more. that's keeping more gasoline here. what's that do? that lowers gasoline prices. >> we're going to talk about the u.s. consumer. let's just explore what brian mentioned. there was a lot of criticism right at the two big hedge fund conferences last week. >> i think what's going to happen here, i think we have seen an increase in transparency. what we're going to see on the way out is non-conventional policy tools and increased signalling.

at the very least the only thing we will see will be some tapering of purchases. we may have to shift some of that 85 billion. find out if they're going to let this be a roll off. i think our fear will probably overa period of time become less and less. >> basically says not much new in that story. do you believe the fed will start to taper off? or would you believe they are

starting to look at the idea? >> you know what? because we have seen our deficits start reducing because a lot of tax receipts came in. if this is a trend that continues you will see the treasury auctions less and less securities so the fed will have to shift their purchases right now. if there is any kind of focus given where a lot of the corporate numbers and buy backs and cash is, and how the economy is starting to pick up steam. i don't think ben bernanke and powers that be are focused. if anything happens once you start seeing sell off you will see that cash rotating towards the economy market quick. >> and as mary was saying we're not seeing an undue amount of concern. >> the president addressed the growing irs situation.

giving more scrutiny to those linked to conservative groups. let's get down. john, come out and said this is unacceptable. what's the next step in the story. took a different tack on two controversies. he said look. this is a political circus. it's a side show. he said he's not going to tolerate it. here is the president. >> if you have got the irs operating in anything less than neutral and non-partisan way, then that is outrageous.

it is contrary to our traditions and people have got to be held accountable and it has got to be fixed. >> also put out a tweet today saying he was very concerned about this and disturbed by it. the next step is going to be investigations fuelled by republicans and democrats. it's an opportunity, a free shot for democrats to say i want everybo everybody. >> on deck, the fall out continues. did they dig into the account of the most powerful man in the world? >> and the sad state of america's airports.

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>> the fall out from bloomberg's breach expands on wall street and in washington. we are taking a look at how the news is playing out. what does washington want to know? >> they want to know if bloomberg reporters were able to monitor top firls maybe one of

the things they have to come forward with and explain as part of this process. >> do we have any certain functions by bernanke. >> so, for example, if an official was looking at the specific market, it might clue a

reporter in. >> that was going to be my next question. i understand you were one of the first people to notice that something was up? >> i reported over the weekend that an on air personality had first mentioned looking up data back in 2011. >> they were supposed to disable the functions and do this back then, after this incident in 2011. supposedly they thought they did and it slipped through the cracks and it never was

disabled. >> it was more along the lines of you were talking about logging in and logging out. he last logged in at this point in time. >> there is no evidence of that. i don't think there was any concrete information that was used in terms of doing anything. or so that's one of these hundreds of puckses that steve just referenced.

any bloomberg client profile page and see if they are logged in or not. this looks very bad. but to everybody on wall street i mean there is rich data there that you want to access and you want to use. >> i don't agree here. i think there is concern on wall street right now.

to guarantee the privacy of the data. it's a first class organization and those two in essence have a certain conflict. the same way there are conflicts inside investment firms. and i don't know what clients are going to demand but i don't think that everybody is shugle this off. you're not seeing anybody cancelling their bloomberg terminals or run to competitors and try to sign up. >> of course it's right tr. i have full knowledge of the functionality of the terminal.

the log ins that you get are it's a general log-in for the employees. the functions, what steve is talking about. what are they reading? i talked to two this weekend. both said we're not cancelling. they liked it. if you're a bond sales man or a trader. you did this trade. you owe me a million bucks. >> we're business journalists. we need a paper trail.

and a lot of that information included in these terminals. a lot of people are inadequate. >> i heard a slightly different take. >> if we get there, they are monitoring in there. >> peter, steve, thank you as well. be sure to check out today's big data download. >> still ahead, the electric car that originally sold more more than 100 grand is now half off. >> and he turned his homemade

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>> the u.s. supreme court giving c companies a big boost today. i never knew you had that title. >> does it translate to other industries? >> round up ready soybeans without paying a fee. said he didn't have to. the patent did not extend beyond the first use of the seeds. based on the contracts that buyers sign, farmers can not use the seeds of seeds without compensating mo nsa nto.

making it clear. this win is for this case only. moving from soybeans to corn on how much corn has actually been pleasanted so far. projected the biggest corn crop whatever. only 12% of it has gone into the ground. morgan stanley is projecting today's report will show a jump to 30% of corn being planted. with lots of dry weather predicted for this week, that is good as farmers will try to catch up. >> that is one instance where it is fair to blame the weather. coming up next, the cell phone

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>> they think the company can generate positive gains because they had a launch of an iphone back in april. this is by far the cheapest of the national phone providers. >> now this is actually not a big move but a really interesting move. >> in fact, any time a bank calls for 19% gains, i'm going to to point it out. they said that wall street is underestimate i underestimating they say parker should use cash for buy backs and acquisitions.

>> we have got a couple of upgrades for koshing as well. >> their target is bullish. >> a pharmaceutical company. it's a big win for this company. >> they got a big payday. >> they're going to to take a share in royalties. getting a fat one time billion dollar pay out. >> i would take that any old day. and joy receive a bank? what's going on with this one? >> when you offer our or five shoots, profits could get kweezed. >> joseph a. bank has been blaming this and that over time. it's not just cold weather. alk about higher inventory sources costs. this is the same company that a

quarter ago gave you an announcement on a friday night. i have got to remind everybody what that was about. you see sales and margins just coming down ambitiously. you say, you know, is there something else going on? it's just one of those things that you want to watch. >> the cut was gigantic. intere. the stock price is where it was before they preannounced last time. you just step back. keep an eye on it. do they have another announcement or do they get their eye together? this is another bear fight for years.

>> it's not like this has been a disaster. >> but not from there. >> look at sales growth in general. >> that's what they have got to be able to resurrect. >> what is behind the april bounce? we're joining the cbs contributor. stacey, how important is that we pay attention to these numbers? even if one month does not make a trend. so many of the stores themselves are not coming out with their own monthly numbers. >>

and certainly for those who are april sales were very good from a retail perspective. so the fact that that space outperformed, it's a good sign for the consumer. >> could we see a huge amount of pent up demand when the weather april, the weather was not grat. and you have heard a couple of retailers tell us now that the weather is easing.

we just heard from gap that it's one of the big turn around stories. gas prices were down about 14 cents. that's a big help to the consumer. it eases up money on the wallets. i think when walmart reports this week, i think that will be a great data point to tell us are those gas prices really easing up and helping the consumers. >> thanks. >> let's bring in the senior analyst. what exactly do we know about this and the rumors that were out there about microsoft being interested in the nook business? >> there are been a couple of different rumors. microsoft is not interested in

the nook as it is an android based product. the article today is misunderstanding is lot of what is going on. the nook is android. with microsoft last week said they actually want to close the hardware part down. the app is being ported in for quite a long time. there is definite misinformation floating around. >> let's back up a bit if our viewers are not familiar with the story of last week. >> now the stock is being taken down by a conflicting rumor.

>> microsoft put a few hundred million dollars in. no one could understand that. this is microsoft afterall. the ap has access to a total library. >> would you be buying this stock on today's dip? >> we would definitely be buying on the dip. he wanted to bid on the book signing. if.

>> that killed more than 1100 people. unbelievable. >> continues to get more unbelievable. 1100 people killed in one factory collapse. >> they are still pulling out bodies today. >> great story. >> that was a great story. it has been really horrific. >> but, they very much want to keep this status and the united states is considering revoking it because of worker conditions because they say that workers are not allowed to meet, to organize, and to form unions.

sales have done very well when it comes to garments. the garments are not part of the special trade deal. they can continue to go. >> listen, americans want cheap stuff. this is what happens. labor is going to move to capital costs regardless. it was all in the american south. right? then it left went to mexico and china. >> walk into a gap and h & m and you will see all kinds of clothing that is extremely affordable. h & m had the most. it was just hours chl .

>> cheap and safe clothing. >> thank you so much michelle. >> must be huge. >> must be huge. >> up next on street signs, this generation's delorian. >> plus, the good, bad, and ugly side of air travel.

let's get out to bill griffith. >> two big hours as always. mandy, ahead coming your way. gap shares you were just talking about more than doubling the s&p retail index. stay tuned for that. and famed venture capitalist explains why regulations are hurting innovation and limiting the upside to this market. all that and the most important hour of the trading day coming your way. all business purchases. so you can capture your receipts,

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saved like $480 bucks. that's a lot of money. i know, right? wait...you have a car? yeah, an suv. [ male announcer ] switch and you could save $480 bucks with state farm. >> luxury electric automaker is on the verge of bankruptcy and now its sedan which once retailed for more than $100,000 is now going for cheap. >> they are going for 50 cents on the dollar. if you're looking in the used market right now and we found a number of them including one in a dealership here.

the auction looking to sell that car. we had a chance to go out and take a tool around. since they listed this one on ebay last week they got plenty of interest. >> a thousand people have looked into this car. what a better way to put it out. talking to these people. it's a whole new different type of person that is looking at the car.

>> they know why it is, where it is. >> thank you very much. >> you bet. >> like eight grand is my price point. airports stink. but your flight may have just gotten a whole lot better through better booze. we will tell you which airline and which booze and why u.s. airports stink. bny mellon combines investment management & investment servicing, giving us unique insights

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if you're a regular viewer of this channel and this show,

you know one thing. i love this country far more than my co-host does. it pains me every time i've got to fly in or out of this nation because our airlines stink. i was shocked by just how much they actually do stink. take a look at this. sky tracks has a ranking of all the world airports. l.a.x., one of the biggest air sports in one of the biggest cities in one of the biggest countries in the world doesn't even crack the top 100 best airports in all the world. jfk and o'hare don't fair much better. literally the first thing people see when they first arrive in the united states from some far off place like australia, not a great welcome. tom wright, executive director of the regional plan association. we've sat on panels about this. for l.a.x. to come in 109th in the world, i know they've got a multibillion dollar project right now. it's taking forever. why are we in this condition? >> we didn't get in this condition overnight.

typic for decades we haven't been keeping up with our asian and european counterparts and investing in these systems. we got way, way, way behind. now we're trying to catch up. >> australian airports didn't do too much better. tom, what do you make of the fact when you look at the top five airports in the world four of them are in asia. >> i was actually in the three in the top four just in march actually in hong kong, seoul and singapore. they're all extraordinary systems. they are -- the country of singapore, of course, is younger than kennedy airport by itself. they've been investing heavily in these systems. they see this as connection to global markets and the rest of the world. and i think for too long we've been just thinkingcoming to us. >> look at number three. you're right about singapore, right about china. number three. amsterdam. and older city than new

amsterdam, right, new york, tom? yet they're there. how do we make the improvements? who pays? because it is going to cost a lot. >> it is going to cost a lot of money. and it's both -- it's both investments in the airports themselves and then system wide, too. we need to upgrade our national air control system and nextgen to take us up into the 21st century with satellite is possibly $30 billion ticket item. i think in europe they focused on customer service. so they put investments in place to make it more pleasant for the passengers. we've just been looking at trying to do the bare minimum. plug the leaks. >> plug the leaks. tom, thank you very much. >> a lot of leaks. >> kind of depressing, isn't it? plug the leaks. >> a lot of leaks. coming up next, the sky is the limit for one booze bround. the founder of tito's vodka. we're talking about tito. he's joining us next. changing the world is exhausting business.

with the innovating and the transforming and the revolutionizing. it's enough to make you forget that you're flying five hundred miles an hour on a chair that just became a bed. you see, we're doing some changing of our own. ah, we can talk about it later. we're putting the wonder back into air travel, one innovation at a time. the new american is arriving.

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it may be only 3:00 here in the afternoon in the northeast but it's 7:00 in iceland. let's talk about booze. the founder of tito's handmade vodka. a man apparently born to make liquor. his last name is beverage. award winning vodka made in the united states. not kidding about your name. how did you get into this? this is a tough, competitive business. how did you have the moxy to get into a competitive industry like

that? >> i started making flavored vodkas for my friends for christmas parents. strangers started coming up, you're the vodka guy. i decided i wanted to do a straight sipping vodka that was smooth going down. gives you a nice easy feeling. leaves you good to go in the morning. >> feeling good. our viewers might notice it's got a yellow tint, right? it's made from yellow corn. as opposed to potatoes or something else that often goes into vodkas. >> it's 100% corn. it's actually clear. we use these recycled paper. i was dating a vegetarian girl when i picked out the paper. she made me use the recycled paper. we used the recycled paper. it kind of does make it look -- >> gives it a yellow tint. >> it's actually clear. >> here's the good news, if you live in this area you're probably forced to fly united. not saying united is not a great airline. 90% of newark. i fly united. your vodka is now going to be available on united.

how did you score that deal? it's a big airline. you're not absolute or svedka. >> i guess their inflight group did a vodka tasting. >> you won. >> and liked tito's. >> what does that mean for you? are you going to hire new people? be a growing company? >> we set up a bottom line to bottle these many -- you know, many airplane bottles. yeah. we're growing every year. >> brian makes a good point. there's a lot of competition out there. how do you differentiate yourself? >> we're kind of one of these weird companies. i just make vodka. i like to drink. >> honest guy. >> that's a great selling pitch if i ever heard one. >> the rest of the people in the bell curve kind of like what i like. it's kind of a weird deal. we just kind of do our own thing and don't really worry about what everybody else says. >> the first legal distillery in texas, yours?

>> first legal. probably a few out in the big bend national park we don't know about. tito beveridge. what other business could you have gotten into? it's like if i was born with the name ron burgundy. >> thanks for watching "street signs," everybody. >> "closing bell" is next. >> cheers. >> thanks for having me. hey, everybody. happy monday. welcome to the "closing bell." i'm maria bartiromo. >> the dow was down 63 at the low. we've come off those lows smartly. i'm bill griffith. we're following how the markets will close and a lot more. big show on tap today. for example, president obama, today you saw that news conference live on cnbc calling the irs targeting of conservative groups outrageous. he says he has noie