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 no patience for

what happened. but the story has not gone away. it has sparked outrage from both sides of the aisle. you'll hear the outrage coming zblup we'll hear from john mccain of arizona ands al franken of minnesota. their reaction to the actions out of the irs. also talk to them about new bank regulations they are setting. the other story we're following, the bloomberg breach. we continue to sort out who snooped on whom through their highly coveted and very expen expensive information terminals and what information may have come out that should not have. we have much more on that very important story just ahead as well. >> absolutely. in the meantime let's take a look at where we stand as we approach this final stretch. we've been in the red all day as you can see here. actually we're at the best levels of the afternoon here hua decline in the session of 22 points on the dow jones industrial average. 15,096. pulling back from the all time highs we saw last week. nasdaq is positive. continue to see technology catch a bid. nasdaq up four points. fractional move at 3440. s&p 500 looks like this. similar chart pattern where you actually look at the standard

and poors approaching the highs of the day. we had positive showing earlier around noontime or so. only up just a fraction here. struggling to stay in positive territory in the standard and poors. >> to the closing bell exchange we go. john manley from wells fargo funds management. danny hughes from divine capital. jason pride. of course, our own rick santelli. >> danny, the debate has continued to rage about when the fed will begin to taper their bond buying program. you feel they're already behind the curve on this, though. >> they're always behind the curve. the fed is always behind what's going on. you've got to watch the bond market. that's where the action is. what happens in the bond market the fed always follows. even though we're seeing a lot more transparency out of the fed these days, it doesn't make a difference. we've got to watch the bond market. the bond market has been, you know, lower than 2% since about 2008. >> on the 10-year sf. >> on the 10-year. that's what you've really got to watch. when you see that hit up to 2% or above either our gdp is

increasing, we've got inflation or both. that's when the fed has to act. >> you feel they should be tapering now? is that what you're saying? >> they obviously have a different way of doing business than they used to. they like to be very transparent about what they're going to be doing. everybody's wondering about what's going to happen. the fact is this huge global unwind cannot just be done by a flick of the switch. and the fed is not going to be able to do it -- >> you're still talking about record low rates. even if we were to see rates start moving up. skomi i coming from such a low base. one of the reasons you say stocks have more room to run. >> i think if ben bernanke makes a mistake he'd rather keep rates too low for too long than the other way around. if that's the case, stocks aren't too expensive, around 14 times or so, why shouldn't they edge higher? >> much lower than where we were in the dot com boom when you had valuation of 28, 100. what groups are going to lead this rally forward? >> i think health care continues. i think it's still a good story. i think we're going to be paying more money for other people's

health care. that's going to help health care in general. i think tech as was mentioned earlier, that comes on. it's a very, very cheap group. they're the ones making this profitability happen. more corporate technology. then industrials. we're about to rotate into that group, i think. a classic bull market progression as far as i see it. there seems to be more to go. >> jason, a lot of people take note as we did at the end of the first quarter how the defensive stocks led the charge. now everybody wants to get into cyclicals. i think you're among them. but have we all figured this out too much? is the cyclical trade going to become too crowded too soon, do you think? >> it could easily become too crowded. there's a little valuation support for it. at the end of the day we have to look at the markets here and think with a 15% run on this year on back of a strong double digit run last year, how long can we run at this sort of pace, though, on very mediocre data? yes, things are getting better. the fed may have an opportunity to pull back from its bond buying.

but the reality here is the markets have moved really fast, really far. it's likely going to be some bumps along the road that come from areas we don't even expect at some point in time. so some stability is worthwhile. >> rick santelli, jump in here. let's talk about where the catalysts are for this market. certainly how the credit markets do you think? >> i think the credit market is kind of easy. talking about the exit makes the market nervous. writing about the exit makes the market nervous. none of this means we're going to actually in any time frame move through the exit. look at short term chart of 10s we're up. hovering at the highest yield since march 22nd. maybe more important story, the dollar/yen for a while touched above 1.22. hovering at the highest level since october of '08. the jgbs have had a wild ride approaching 80 basis points. a three month high. retail sales was important, people, for a lot of issues like the end of the year issues regarding the government and the sequester. but i will say the next chart is

nonseasonally adjusted. the seasonally adjusted showed one tenth increase. son seasonally adjusted chose a retail cash value on the data of about 416.5 billion. at the end of last year was 468 billion. how do i know if the seasonal adjustments are sensitive to things like tax policy and sequester? something to pay close attention to. >> we will. but that retail sales number, though, has some analysts upgrading their second quarter gdp estimates now, don't they, dani? is it possible the fundamentals do support what's going on in the stock market right now? >> yeah. that's what we hope. the analysts dialed it back over the last couple of years because nobody really anticipated great growth over the next, you know, three, four quarters. but the fact is, is that the numbers are actually looking a little bit better than everybody has expected. so what do you do? you still have to go into names that have a great yield, that

have great cash flows. and have the ability to pay nice dividends over time. that's what we're seeing with the s&p. the numbers are getting squeezed. earnings are getting squeezed. sales are getting squeezed over time. they do have the cash to support that attraction of investors. >> jason, let me ask you about allocating capital right here. you are the director of investment strategy. what's the best strategy right now? >> yeah. we're taking a position that's basically constructive but not overly aggressive. we're not going for the high fliers. we're not going for the high yielding stocks. we're going for the stable cash flow generators. whether they be industrials, consumer staples or health care. we're also doing things elsewhere within the portfolio. we're upgrading into some high yielding or bank loan opportunities where we can take risk and position ourselves for a long-term grind out here. which we think is coming about. 2% growth is not great but it's not that bad either. you want to be taking risks but doing so selectively. >> better than it was five years ago, that's for sure.

john manley, i love going over lists like new all time highs being set right now just today. disney, google, priceline, berkshire hathaway, starbucks, international flavors and fragrances, home depot, whirlpool, real brand names out there right now. what does that tell you about the message of the market here? >> i think individuals have been scared to death to buy stocks for the last two or three years. now they're getting scared that they're risk free investment doesn't have any return. by definition it's not risk free if you want to retire. i think people are being pushed toward stocks in much the same way they were pushed toward treasury bonds. >> they go to names they recognize? >> they're good companies, too. these are fwood, solid companies. they have a history of promoting the right people. good cash flow. all the sort of things people need if they're going to retire and fund a retirement the next 20 or 30 years. >> in many cases dividends. >> oh, by the way, yeah. >> thanks, everybody. really appreciate it. >> thank you. want to get a check on what's holding back the market

today with the dow down about 36 points right now. mary thompson on the floor of the nyse. >> traders says there are a cup of things at play. a little buyers fatigue. we've had a very strong market so far this year. you're going to have days like that. that's what some of the traders are telling me. also the article in the journal on friday by john hilsenrather, saturday, actually, raising the expectations that the federal reserve could actually -- mapping out a plan to pull back on qe-3. they say that's impacting the markets as well. but we do want to note even as we talk about this, the nasdaq is higher. holding on to some gains. biotech stocks very strong today. that's giving a lift to the nasdaq offsetting weakness we are seeing in semiconductors. also retailers are strong as well. recovering from an earlier decline. retail sales for the month of april were up a better than expected .1%. what are traders looking ahead to for the rest of the week? lot of fed speak. a lot of in your opinions from the federal resefrve. they'll be listening to clues

about whether or not the fed does have a plan to ease qe-3. do the fed members start to talk about that in the public space? also, economic data. especially housing that should provide some direction to the markets. these are the dow movers today to the downside. alcoa, intel, hewlett-packard, at&t and dupont. weakness in gold and oil. dow off 37. strength in the nasdaq. s&p basically is waffling around the flat line, right now fractionally lower. back to you, maria. final stretch of trading for the day. about 50 minutes before the closing bell sounds. a market that is mixed largely to the downside. dow industrials down 38 points. con tro strersy over the irs targeting conservative groups could also extend to the wealthy in general. does the irs go after high income earns because that's where the money is or is there a bias there as well? we have that story coming up. also ahead, have you noticed the gap stock recently?

true comeback story. we'll find out how that happened and if the stock is still a good bargain for your portfolio. after the bell mark andreesen will tell maria why a war is being waged on the stock markets now. stay tuned. much more to come. the ocean gets warmer. the peruvian anchovy harvest suffers. 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.

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what we already knew, that the irs had been improperly targeting conservative groups. is the agency also unfairly auditing the country's wealthy? robert frank working that angle. >> whether it's fair or not the irs is increasingly targeting the wealthy for audits. according to the irs, people making $200,000 or more are three times as likely to be audited. people making $1 million or more, they are ten times as likely to be audited. those numbers are way up from 2010. they're about to go even higher. the irs has created a new team called the global high wealth industry group to target the rich. it's staffed by experts on business income, trusted estates law and overseas accounts which are often used by the wealthy. conservatives say this is further proof the irs is

unfairly targeting the wealthy for political reasons. but the irs has yet to comment. former irs staffers tell me this is economics, not politics. wealthy tend to file the returns with the highest error rate and most money. irs collected an extra $4.8 billion from auditing those million dollar earners an average of $170,000 per return. maria, whether it's political or not, targeting the wealthy has been very lucrative for the irs. back to you. >> interesting. thanks, robert. meanwhile the president chimed in personally today on the irs controversy. here's what he said. >> if, in fact, irs personnel engaged in the kind of practices that have been reported on and were intentionally targeting conservative groups, then that's outrageous. and there's no place for it. and, you know, they have to be held fully accountable. >> so where does all of this

lead? joining us now to hash it out, mitch epner is a former federal prosecutor and our own larry kudlow has been wondering around the fly of the new york stock exchange today so we invited him up to talk about this one. >> thank you. >> good to see you, larry. mitch, at this point the irs response has been this was the work of lower level managers who purposely sought out applications for 501 -- >> c 4. >> i keep wanting to say c 3. it's a different designation. applications that had the name tea party and patriot in it. they went after it. not at the hes of the irs itself. you feel there could be criminal behavior here. >> we don't know yet. the facts have to be investigated. but i know from attorneys who are very close to this case that there are national complaints from tea party groups and patriot groups saying that they were targeted. so either all of these things were gathered by somebody

outside of the cincinnati office into the cincinnati office, or this was a nationwide policy. but the story that was told by the irs friday does not jive with the facts as they are developing to this point. >> but, i mean, how much bigger is this going to get? how much bigger are we going to learn? we just heard robert frank that the irs is targeti ining wealth individuals. >> that's a least of their problems. i mean, look, not only -- not only tea party and patriot groups, but also as it turns out from reports today, groups that have taxes, spending, debt, making america great in their titles. they were targeted also. there are reports today that israeli groups were also targeted. you got to explain to me, if this wasn't a political witch hunt, if this is a bunch of hooples from cincinnati, why is it they put out a circular march 2011, right after the election saying no to it. a second circular in june of

2011 saying don't do it. shulman testifies, the head of the commissioner, he testifies in the summer of 2012, we didn't do it. finally lerner testifies last week we did. if all these circulars were put out, you're telling me that the top people in the agency didn't know something about this? i find that incredible. >> is that what you're saying -- >> you're a former federal prosecutor. what would it take for this to become criminal? you said there could be criminality here. what's the smoking gun? >> the crimes that would have to be investigated here are tax felonies. it is a felony in the post-nixon era for people to sick the irs on their political opponents. you simply can't do that. and if -- and i want to underline the word "if" because i don't know the facts. if it turns out somebody on the political end of things was sicking the irs on groups who were conservative or tea party or patriot groups, that is exactly what we cannot have in

our society. that leads to venezuela. >> how will we ever know, though? >> they're going to have big hearings. you're going to get -- first of all, don't forget, the irs is inside the treasury department. very important point. the inspector general is going to issue a report this week. is the treasury inspector general for tax policy. the treasury is a very political place. >> the treasury overseas the irs. >> indeed, they do. they talk. there's discussion. second point i want to make is obama care. obama care, okay? these groups in the first place were started because of their opposition to obama care. guess who is there to monitor and execute obama care? the irs. that is another nasty potential political connection that has to be cleared up. ways and means is going to hold hearings. oversight committee is going to hold hearings. we're going to have the senate, we're going to have the house. democrats rup are up in arms. this is going to be a massacre. >> of the facts you do know what didn't wash with what the irs

was saying last friday. >> it goes along with what larry was saying. there are too many coincidences here. too many things that were happening nationwide. too many things being reported up the chain for it to make sense this was just a bunch of low level people on their own deciding to do something stupid. >> right. >> either somebody senior to them decided to do something stupid or this is an enormous coincidence. >> agency wide circulars. agency wide memos were put out on several occasions. that's the tipoff. >> what were the memos there for? what did they say? >> allegedly, don't pick on these 501 c 4 groups. don't pick on tax exempt groups. they're social welfare groups that are allowed to engage in some politics. but they're asking questions. they're asking incredible questions like, who are your donors? did your wife go to this rally? are you -- what is your political leaning? they're asking questions that shouldn't be asked so they put out memos. if they put out memos those are agency wide memos. >> can they just back this up by saying, oh, well, you know, we

are strapped for cash and we're looking for money and we're going to target rich people? we're going to target because we're all strapped? can they use that as an excuse? >> no. because this is not about money. this is about tax exempt status for groups that are supposed to be social welfare groups. and larry was talking before about the oversight on the hill. i'm all for that. but the grand jury is a very effective agency. and i see the possibility that at the very least, you're going to have people put under oath behind closed doors, separately. and after everybody's sworn separate testimony comes out, you were asking before, how do you figure out what happened? you ask lots of people the same questions at different times and you see how they line up. >> what's the chance the treasury inspector general's report, okay -- >> which is still to come. >> that could be a real indictment. these guys are pretty good. if igs in these government

department are pretty good. that was my experience when i worked in government. in fact, there was a treasury department ig that blew the whistle on a lot of the waste, fraud and inefficiency that went into the bank bailouts. he was the one that blew the whistle. i'm just wondering whether charges won't already be made before this week is out. >> what are the implications here? are they going to roll back a audits may may have already put in place? roll back questions about the tax exempt situation once we find out that, oh, yeah, they were doing this intentionally and the top of the irs knew it? >> if it turns out that the top of the irs knew it, you can't help the victims. but you can, for lack of a better word, execute the wrong doers. >> what about loss of -- not just -- i understand your point about it's a felony. you could have criminal lawsuits. i appreciate that. what about civil lawsuits? what about civil payments? remember, some of these groups were stopped before the election. which to me is incredible. >> right. incredible. >> the people i know who are

literally representing these groups, i know are investigating what their civil remedies are. but what they want to do is see what facts are ferreted out by the federal government investigating themselves before they go through the time and expense of trying to bring a civil action against the federal government. >> we'll leave it there. gentlemen, thank you very much. >> larry, good to see you. thanks for joining us. we knew you'd be on this one. >> i was out trading between one show and the other. >> i know you were. >> an important discussion guys, thank you. coming up, we'll hear from republican senator john mccain and democratic senator al franken. they'll weigh in on the irs scandal and a lot more later on on "closing bell." meantime with about 40 minutes left in the trading session here the dowdown 40 points. looks like we're heading lower as we head toward the close here. were down 63. just off those lows. gap, the comeback kid of the retail world. up next, we'll take a look at just how real this turnaround is. also, fame, silicon valley venture capitalist marc

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who's fully invested in you. wells fargo advisors. together we'll go far. welcome back. a prolonged turn around for the gap teaching investors sometimes patience pays off. courtney reagan taking a look at gap's return to prominence in our special series this week comeback companies. >> good afternoon, maria. thanks to more efficient operations and compelling product both consumers and

investors are falling back into the gap. it does seem that patience has paid off. chairman and ceo glen murphy tells cnbc gap, ink has been executing its strategic plan to become a global retailer with the dominant portfolio of brands since 2008. we've mad progress and are pleased investors are taking notice. gap shares have increased 78%, far exceeding competitors and doubling the performance of the s&p retail index. gap's operating margin has improved from 7.6% in '07 to 12.4% in 2012. guidance is for 13% this year. in 2012 net income grew 36%. sales increased every quarter up more than 7.5% for the year. on friday ratings agency s&p upgraded gap's credit to investment grade. some analysts do question whether the strength is sustainable. certain ag rate shares underperform. concerned about the recent

departure of tracy gardner. >> we think we should continue to watch old navy. there's new leadership at the brand. the business was actually fairly strong through last year. but we remain pretty confident that this combination of kind of a distinctly american voice plus really compelling value could be a tremendous growth driver for gap in the medium term. >> in the long term international growth is part of the plan for gap. the company telling me today that hungary and paraguay will get gaps. mexico will get a banana republic to add to the gap presence already there. >> let's talk about whether gap's comeback is just a trend or should you think about adding this stock to your portfolio. let's talk numbers on that today on the technical side, rich

ross. global technical strategist. on the fundamental side, enis tanner. good to see you both, guys. rich, walk us through that chart of this comeback kid for the last year. >> bill, i'll tell you, the gap is like a retail cicada. after doing little or nothing from over a decade it merges from a bullish base of support and starts making a l o noise. when we pull up that long term monthly chart you see what i mean. after it peaking back in 2000 and -- excuse me. a few years back, 2007-2008, we fall from $15 down to $9 a share. we break out from that base of support. we're on a nice run. we think the stock has legs up to $50. we'd be a buyer here. >> enis, you're not buying it fundamentally? >> no. i actually do like the stock in the long term, bill. in the short run i think it might be due for a pause. in the long run courtney laid out an exceptional case. the best part about gap is it's improving on the both the revenue front and cost front. costs are moving lower as they

improve their operations. one aspect of that is their ship from store model which has improved their inventory management. on the revenue side the brand has gotten more creative and appealing. in the long run real drivers of growth will be online business and international expansion. if they can get those two growing over the next year, the stock certainly could reach $50. >> bill, keep in mind they've already raised guidance for the first quarter. they're doing everything right. there's momentum on sales. there's momentum on margin. this company is blowing away way expectations. there's momentum on the technical side and the story is strong behind the heart. >> one last thing i would add, bill, valuation here is not that stretched even though you would think a stock up 75% in a year would be. it's actually only 14 to 15 times forward pe name. i'd love to buy it at $38. i might not get that chance. >> good to see you both. thoughts on gap today. catch more of enis and rich on the new online edition of "talking numbers." you'll find it on our website at

cnbc.com/talki cnbc.com/talking-numbers.com. start that this afternoon with our buddy brian sullivan online. 30 minutes before the closing bell sounds for the day. a market that's mixed. dow has worsened a bit, down about 38 points. nasdaq actually just turning negative here with a decline. we are turning negative pretty solidly at this point. >> there's always tuesday. which has been positive. >> for 17 tuesdays. >> exactly. target banks. when we come back, the head prosecutor of north carolina's newly created financial crime initiative tells us why her state needs to have this special unit to go after the financial sector. >> that should be good. also, minnesota senator al franken explains taking on the ratings agencies. he'll explain what he wants. plus reaction to the irs going after conservative groups. that's coming up 4:30 p.m. eastern. tdd#: 1-800-345-2550 when i'm trading, i'm so into it, tdd#: 1-800-345-2550 hours can go by before i realize

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welcome back. is congress putting the securities and exchange commission on notice? bob pisani here with details on that. you were looking into that this morning. >> representative scott garrett

chairs the committee that has oversight of the sec. a round table panel of over several does participants. exchange operator. big institutional traders. to talk about what if anything needs to be tone about market structure. interestingly it was really about the s.e.c. >> so we want to hear from both sides of various issues, whether it's high frequency trading or dark pools to be able to get a general sense of where they're at on this and also send a message to the s.e.c. it is a very important topic they should be looking at as well. >> send a message to the s.e.c. the message is we have oversight over you. we're watching. we want to make sure you're up to speed and paying attention to any issues around market structure. the s.e.c. was there. i talked to commissioner dan gallagher. he sat in the whole time. i asked him what if anything the s.e.c. was planning to do this year concerning the very hot topic, high frequency trading. >> i don't think there's a consensus view on the commission. again, this is where the data competes.

we have one set of data showing the markets are more efficient than ever. on the other side, we see these numbers, 60%, participation by high frequency trading strategies. it makes you wonder. >> so you can smell how ambivalent the s.e.c. is about this. guys, the important thing is they're not sure what, if anything, they should be doing. that's the sense that i got. they hear the public feels sometimes they're being disadvantaged. but they also see very low trading commissions. you can trade 10,000 shares of ibm for 7.95. get it done quickly. there's not a lot of complaints. s.e.c. is going to continue to investigate this. my sense is they're not going to take any major action against high frequency traders this year. >> just putting them on notice. >> let them know we're watching. i think if there's high level abuses, if they can find a rogue high frequency trader out there they'll come after them. but come after the whole industry en masse. >> tougher to do. the state of north carolina creating a special unit to look into white collar crimes, funded with $6.7 million the state

attorneys general set aside from north carolina's share of a national settlement with the five major banks over mortgage impro pryties. tammy smith heads up that unit. she joins us now to talk to us more about this. what prompted this initiative? why now? >> i think financial crime is on the rise, of course, across the state of north carolina. it's time to do something about it. i think more and more criminals are turning to financial crime because there's less risk. it's less dangerous. there's often a larger payout. so when the national settlement mortgage came along and our attorney general was kind enough to involve us in the prosecution effort and to fight this crime, we took advantage of it and started the financial crimes initiative. >> i read where you then divided your state into four categories. you assigned a prosecutor to each category. following on maria's question, though, what specifically are you going after? give us an example of the kinds of white collar crime that you'll be targeting. >> sure. we did divide the state into four different regions. we have a regional prosecutor in

each of those areas. they will primarily prosecute financial and economic crime which includes things like identity theft, embezzlement, mortgage fraud, obtaining property by false pretenses. the general definition of any nonviolent crime that is done for the purpose of financial gain with some deceitful element to it. >> what does your gut tell you? where is the crime? you say you're not going after banks. who are you targeting specifically? >> we're targeting those individuals that are attacking our citizens through the internet, through financial fraud schemes, particularly our elderly. they're a very high target population for us. we want to protect those citizens. people stealing other individuals' identities. reaching out to them through any kind of fraud and getting their future and their assets and attacking their security and their financial security. >> you want to educate the public about that as well. this is not just a prosecutorial initiative. you want to educate them on this as well so they can help

themselves. >> absolutely. i think the program is three-fold. i think we have a prosecution effort. this allows us to have a unique opportunity to have a focused -- a focused attention on those kind of crimes. i think that we're also going to do education and training as we do in all of our resource programs for prosecutors, law enforcement and the citizens so that we can teach our citizens to protect themselves and not become victims. because if we can cut the victims down, then, of course, we can cut crime down. i think that's a big part. the third element of our program i think is that north carolina is unique in that we are reaching out to other allies such as the banking industry. the real estate commission. other state agencies so that we can approach this in a team effort to cut down prosecution. we want criminals to know not to come to north carolina to commit this type of crime. >> right. the awareness is as important as anything else, right? what have you done so far with the $6.7 million that was set aside for this initiative? >> the program was established in november of last year. and so far we have got the program up and running. we have done one training so far.

we have also done some community outreach. we've hired our four regional prosecutors. three of thm started in may. the fourth one starts this month -- or three of them started in march. the fourth one starts in may. we're very excited about getting them on board. we have active cases. they are trying cases at this time and have an active case load. >> how far is that $6.7 mill kron going to go? are you going to be self-sustains at some point? what kind of budget are you going to have? >> we absolutely hope that is the way that it's going to be. at this point our estimates are that if things continue as they are now that the money as it stands will last five to seven years. but i feel like the ultimate measure of success in this program is program longevity. that's certainly what we're hoping for. and to find other funding streams. we want to be a program in north carolina that the citizens and other agencies cannot live without. because we have been so successful and have made such a dent in this kind of crime. >> all right. >> good luck with that. thank you for joining us. >> we'll be watching. >> thanks for having us. thank you. >> thank you so much. >> good idea, right?

>> absolutely. >> take a piece of that settlement and use it to fight crime. heading toward the close here. coming off the lows, the dow down 30 points right now. as i said, just wait. tuesday is still to come. don't worry. disney's abc network about to launch something that could forever change the way you watch live television. we'll tell you about it next. speaking of television, senator john mccain wants to help lower your cable bill. he's trying to stop media companies from bundling channels. he's here in a first on cnbc interview. we'll ask him about that plus the irs scandal. the president defending his administration on benghazi and a whole lot more coming up. it's monday.

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(train horn) vo: wherever our trains go, the economy comes to life. norfolk southern. one line, infinite possibilities. disney's abc network is lau launching a new app for live streaming of television programs. >> julia boorstin with more. >> it's another front opening up in the war for tv's future.

abc is the first broadcast network to let people stream broadcast tv directly to their mobile device for no additional cost. it's app called watch abc is rolling out for anyone in the new york and philadelphia area to try starting tomorrow. by july it will be available to one-third of all people who pay for cable or satellite tv, rolling out to more before the fall tv season. this is one way the industry is responding to aereo, a start up that lets people stream live tv via personal antenna. it doesn't pay the networks for their content. now, watch abc should generate additional revenue for abc from advertising, plus compensation by the table and satellite tv companies including cnbc's parent, comcast, cable vision along with cox and charter. meanwhile, another digital video option, netflix, is rallying today on some positive comments from investor whitney tillson, saying the stock still has potential to grow despite the company's growth so far. in the face of these digital

alternatives, broadcasters are pulling out all the stops to keep subscribers and advertisers hooked. fox just announced the return of a limited edition of its hit show "24." during this week's up front ad sales period the broadcasters are battling to turn around their declining ratings. we'll have to see if big name content like "24" and digital tools like watch abc can fight the pull of the digital only alternatives. maria? >> i understand how they're going to do "24" in 13 episodes. they'll have to call it "13." not "24." how they going to do that? >> thanks, julia. >> i know julia doesn't know. >> do you have the answer for bill? >> i don't know. i think they'll probably keep playing by the same rules. they're going to try to make it feel much more desirable. only 13 episodes. you're going to have to tune in in realtime. that's the secret of what's going on here, trying to drive that realtime viewing, bill, because that's what's valuable to advertisers. >> good answer, julia. ten minutes before the closing bill sounds for the day.

down 28 on the dow. ubs's david lefkovits says it's time to rotate your investmen investments. is privacy now officially dead? many say yes. does that mean what bloomberg did by snooping on users who pay hefty sums for the service was okay? that's later on the "closing bell." also later on the "closing bell," big data download. you can see that at bigdata.cnbc.com and on cnbc's mobile app. [ male announcer ] what?! investors could lose

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and all of them offer low cost investments. welcome back. we have breaking news. the house is planning to investigate the irs scandal. hampton pearson with the details. hampton? >> maria, the house ways and means committee chairman dave camp announcing this afternoon that on friday the ways and means committee will hold a hearing on the charges of the irs targeting conservative groups. releasing a statement saying in par part, the irs must be nonpartisan in enforcement of tax laws. admission by the agency that it