those are interpreted as positive. >> we will see the chairman on the hill wednesday. that's the same day that the meeting minutes come out. that will do it for power lunch. >> street signs begins now. >> we're down a bit right now but overall the incredible run has rolled on. stocks at a record high. nasdaq breaking above 3500 earlier as yahoo! makes a deal for a company that makes no money. j.c. penney shares are higher. one analyst will ask if that's a bad call. and friday we asked what you

would be willing to pay for on facebook. a lot of you responded but facebook may need to be nervous. >> you know what? it's getting harder and harder to impress you with records. that was back in 1999. the s&p is about 18 points shy of the most points in a year. the number to beat there is 258 from 1998. so let's get straight down to bob. you feel like the mark does not know quite what it wants to do? right now we are grinding

around. take a look. i think that is why we draw it. on the surface it looks bullish. we said before, hthen he said their policies are working and their economy is working. a lot of people said that charlie evans thinks that they will go off of their bond purchases. meantime, bottom line. it's a fairly liquid take. financials have been doing better.

>> they priced that. closed near 50. up another 10%. back to you. >> thank you very much. >> follow up on the comments that bob was talking about and get your correction protection. robert is joining us. today we will be just fine. charles evans in the fed. we have had richard fisher. both are optimistic on the economy. do you believe that's the reason we saw stocks turn down today. >> yeah, that's probably the reason that we saw him down today. you know what? one thing right now i think it's important for the average investor to step back and take their emotion out of this. we are hearing every day that he was just talking about the dough

and the s&p being close to the record basis. if you look back since 1975, 35% youre time average rate of return could be dismal. and that's why you look at some of these where you see the average investor it's because they listen to these types of headline asks they don't really realize the magnitude. >> the party has been fantastic so far this year. when you get these comments from other fed members, you think good, but not good.

it could mean tapering sooner rather than later. >> that's a great point right now. >> followed by a correction. if you look back at that time which i think is very unique to right now, the market 2001, 2002, 2003, while it did decline, there were sectors that actually did well. while the fed is talking about tapering their portfolio, that is where we are talking to our clients about. areas like telecom are going to be sensitive because they will become competition for the bond yields. you want to start moving into the underperforming areas. >> let's bring mark travis in on

the conversation. if you could bring in the graphic, because mark, what this chart shows us, if you're listening on the radio it shows that in the year 2000 we were here. in the year 2007 we were here. what is to make us so confident that we're not going to drop like we did the previous two times. >> i have no earthly idea. first step i would take is what is a valuation underline my equity position. does it have positive operating income? what type of multiple am i paying for this share price and business?

and you know, it is 20, 25, 30 times operating income, maybe you need to pair your positions. once you have a position that is six to eight% of your portfolio, you better hit that pitch. >> i probably have high teens as a fund manager. smaller cap lastly, you know, a put with a strike, maybe specific to your position. particularly if you wanted to have your gain out to a year and a day.

>> i would look at your portfolio and reduce the positions. consumer staples. utilities. the tell con. you want to rebalance back to your adequate position. >> robert and mark, great to have you on the show. thanks for kicking it off. >> let us bring in herb. he just sent out this tweet. when shorts are squeezed out, so are natural buyers to cushion

far. it was 140 characters. >> it doesn't matter when it's only 140 characters. >> they are all out. >> the point is when there are no short sellers left in the market, remember this is a market made of bulls and bears. sums it up. i won't use his name. then he goes down the list. some people point out like a solar city. if you're pointing at the short squeeze you're not pointing at anything underlying.

it's not like bank of america. it's not like caterpillar has a giant short interest position against it. not like cisco. >> some of them do. >> they are not susceptible to those types of moves on a squeeze because they are too liquid and large. let me tell you, this is the thing that everyone is talking about. the short sellers. if they're gone, you know what? >> how likely is this scenario? >> no one is willing to take a stab. the higher it goes up, it's like anything. the more anything moves in any direction, compressed period. >> you will run out of short sellers. shorts can have an unlimited

loss. i agree with your point but i don't think we should focus on the obscure names. >> when you talk to people who run short books at bigger funds, it's a difficult environment. they're not the popular guy. >> no one wants anything short. just ask mandy. >> short is a nice place to be. >> in the meantime, silver earlier on today. let's get straight to sharon. >> and also the weakness that we are seeing in the dollar as

reasons for the turn around. keep in mind we are looking at silver that had plunged about 9%. it's a very thinly traded metal. right after the european close and some traders say they were digesting a credit report talking about the potential down the road for a u.s. downgrade if we don't get our debt situation together. they also look at the open interest that has climbed up and also the fact that technically it was a very bearish market. not only for futures but also in the etf space where we have seen a dramatic decline in etf holdings. really when we saw the turn around it happened in the etf market first. traders are pointing there and looking at that as a

possibility. >> thank you very much for that. we are down over 30%. >> yahoo!'s billion dollar bet got us thinking about the next big thing in tech. the three companies that you need to keep on your radar. >> plus dream liners first u.s. flight since being grounded. he is on that flight. he is sipping a martini. going to get a live report as soon as he lands. >> and later on the story today. if you think your tax rate is high you will want to hear this story coming up.

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>> he is a tech geek who loves motorcycle, adventure travel and

his bulldog named clark. as of today he is one of america's richest entrepreneurs under 30 years old. >> a got the bug. i really wanted a two-wheeled vehicle so we went and got a vespa. something neither of us had done before. our primary mode of transportation for about a year and a half. >> will all this money change him and his language? not likely, says his dad. he is a composer of tv and film music. his dad says it's about doing what he loves doing and creativity. he dropped out of high school. for high school he went to bronx

science for one year. his idol was steve jobs. david used to watch every online video of steve jobs. it's great advice. >> i would like to know what the father said hey, dad, i'm dropping out of school. >> it was the -- >> probably nsfw. >> it was the 80s and new york. >> fair enough. robert, stick around. the tumblr acquisition got us thinking who could be the next big deal in tech. >> here is the thing. it was not just snapped up because it has a young user base

but advertising value of all of that content on all of the blogs. here are four other potential hot targets. of course we have to talk about hulu. it's back on the auction block. how much it sells for will hinge. yahoo! tried to buy daily motion which has over 112 million unique monthly visitors and 2.5 billion video views. it's all about pinterest. just yesterday it took a big step working with big brands to make it easier to click and make a purchase. it raised $200 million in february. and for articles, social news

web side reddit is where to go to read. users vote on what is important. the content space we have to remember that video ads are becoming increasingly valuable. that's a lot of ha is driving the valuations here. >> stick around. we're going to bring in. >> a lot of people think that is one of the main reasons that yahoo! wanted to buy them. some of the hottest apps are messaging apps. snap chat sends tens of millions of messages a day. people use this constantly. what's app is a fairly simple texting app that let espeople

send free messages. 200 million monthly users which makes it bigger than twitter. most people don't really pay attention to them. what's app is primarily used by young people. >> i want to ask a bit of a sensitive question. tumblr has a bit of a pornography issue? >> yeah. >> what does marissa meyer do with that? do you get rid of it or do you buy into it? regardless of what you think of the industry, it's a fast growth industry? >> i think buying into it is not really an option for a wide variety of reasons. most of the people posting adult content did not create it. the best course of action is let it be.

the fact that tumblr is somewhat immune or resistant to copy right infringement, if they don't want to pay like a serious upridesing they should probably leave that alone. >> she said she is inclined to let tumblr be tumibly. thank you very much for covering the story. cnbc has an alliance with yahoo! to share and co-produce editorial content. >> like the show talking numbers. just finished commercial u.s. flight. he joins us now. he can apparently use his phone. phil, tell us about the experience. >> uneventful flight. i think eboth bowing and united

airlines were an uneventful plight. there was speculation that you would find passengers ap hencive about flying the dream liner. i talked to a number of passengers and i did not come across any who expressed any hesitation about taking the flight or about concerns that the battery system might not be safe. this was a very routine uneventful flight with the exception that there were a fair number of reporters on board, talking with the ceo. thanked everybody for taking the relaunch flight of the dream liner. sat in the coach section and also was greeted by a number of passengers who stopped by to say congratulations. we're back here in chicago.

and it's good to be back home. >> and you know what? we thought you would hit up about 2:30. then we were just joking. there is no way that this flight was going to be late. already united had a bit of a marketing hit because they were going to be the first u.s. airline to fly the 787. and when all the boeing problems happened this was a bit of a black eye. >> and they need this plane to be in service. >> stick around. shares of bowing in the meantime are up over 30% so far this year.

>> we talk about with this company is the plane itself. what i love about your research is you really dug into the technology effect on the other lines. the 777. the 767. what is boeing going to give out to investors besides just the actual plane itself? >> it has all been red ink so far. i think the key is as they can apply a lot of the kpos it technology, the wings for example.

>> what might that do to the stock? >> they are going to at least cover their overheads. they have pricing power on their commercial aircraft. the defense outlook is not quite so negative right now. it's beginning to look a little better. the sky is the limit for the boeing stock. the world is looking for best in class u.s. equities. boeing certainly fits that bill. >> rick, a real pleasure.

we will see you soon. >> thank you, brian. >> still to come on street signs. the natural gas boom. we're going to take a closer look at what exactly is driving today's surge. >> the big business of summer. we're going to kick off a week-long series of some of the summer's hottest spots. back after the break. i have low testosterone. there, i said it.

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>> nat gas goes boom. it is a top performing commodity. late last week. natural gas index is currently at an all-time high. in the meantime you have got nat gas producers. let's bring in oil associates. how much of a game changer is this news? >> it's significant because it allows natural gas producers a new outlet. >> will we see a sustained rise in natural gas prices as a result and who does that hurt? >> i don't know if the natural gas rise is going to be sustained because it is quite expensive to export it to europe

and asia. the biggest beneficiaries are the producers. but people on the other side of it are the petro chemical industries. some of the utilities that are buying natural gas and forced with the consumer rates to be fixed on their electricity prices. >> you know, if we look at asia you talked about expensive. it is expensive. but natural gas is going for about 12 bucks in china. at 4.50, 5 plus shipping that has got to be profitable. >> it is profitable and that's why you do see the asian utilities, especially korea gas as well as in japan wanting to buy u.s. produced natural gas. their alternatives are quite limited essmeshlly in japan after they shut down the nuclear industry. >> what about the coal miners?

if we do see a sustained price increase, is it possible that the utilities would go back to coal? >> the electricity utilities every day are looking should i burn coal or natural gas? it will also benefit the railroads who are hauling the coal around. >> i think over the next couple of years the price over there is $10-12. so there is a potential upside for the producer. >> great to have you on the show. thank you very much for joining us today. >> thanks for having me. >> it should shift the needle.

>> on what? >> on natural gas in terms of the exporting countries. countries that will take it on? >> maybe lit drive up prices here. we have too much natural gas. will have to wait and see. >> coming up next, a china heavy edition of street talk. >> and a battle brewing over j.c. penney. it's like a big bull and like a calf. we're going to get into why they may get up to 27 bucks a share.

>> welcome back everybody. it's street talk time.

the first one is actually one that bob very briefly touched on. this stock continues to run after its ipo. clearly a very missed price or not enough stock out there. the founder who looks about 15 years old but has a kid is now a very, very very rich guy. >> have you noticed that the rich founders are getting younger and younger? >> he started the company in '03. >> they got a $28 target. this was an eight dollar stock about a year ago.

>> they expect to receive a so-called debarment -- the noti a bad thing but they do give osi a chance to demonstrate compliance with tsi obligations. they have a chance to say give us another shot. >> net ease is a chinese internet company. 6% gain. >> it didn't make it into street talk because it is a sloucher today. revenue growth is more stable now.

>> and ja which is also vindicated the fact that it was going to be a chinese heavy version of street talk. ship mss top guidance. i'm in a bad mood and i will end on a negative note. it's now 8 bucks. great day, is it? 130 bucks a couple years ago. >> giving out good news to cover up the bad news. we want to do a quick update. we asked is there any function or feature on facebook that you would be willing to pay for.

many of you chimed in. billy says i would pay to look at other people's profiles anonymously. facebook should pay a percentage of content that is viewed. >> and fred tweeted absolutely not a thing. >> and he tweeted it in all caps as well and brad says he would pay for no ads. my hunch is that no ads are the things that people would pay for. in the meantime, we are getting some breaking news on the irs scandal. >> a little bit more information is dribbling out about exactly when and how the white house was notified of the irs inspector general audit.

what jay said last week was that the white house council had been informed that the awe did was about to be completed but nothing about the conclusion or substance of the report. today he came out and said kathy was told the top line likely conclusions but it still was not done. a little broader range of knowledge. the conduct in question, the misconduct in question had already stopped in may of 2012. they are waiting for the formal report to be released. we will get testimony from the

irs commissioner. we are now learning that the chief of staff and chief council knew about at least the top line. they report directly to the president but apparently according to reports they didn't tell the president. >> remember what we're talking about. the third week in april a couple of weeks before the report was made public. it was not finalized at that point. >> john, thank you very much. up next, dreary weather. >> drurry weather is always sunny. rainbows and sunshine.

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. >> we will speak exclusively to the president of blackrock, inc. and we have two stocks that the winner of the massive power ball jackpot should be buying right now. maria and i look forward to

seeing you at the top of the hour. mandy? >> we are looking forward to it. markets are down right now on the dough. and some of this is being acontributed to a couple of fed officials. obviously if you're upbeat about what is going on, people will start extrapolating that maybe they will have to start tapering sooner rather than later. >> let's not have a panic but n button. >> we are taking a really big look at the big business of summer. we're ticks it off with summer

housing. >> sunshine and cool breezes. the business of summer has already gun here on maryland's eastern shore. all of the big rentals are already booked. but an interesting dynamic is playing out in the overall home buying market as it recovers. >> we're getting the calls for people to buy into the market again. >> slower sales have kept the rental market here tight with big rentals like this one in high demand. now buyers are returning and new renters are coming into this quaint village. >> we are hearing that we always go somewhere on the jersey shore and we're nervous about that. >> it's a great time to buy and

bad time to sell. his selling season won't start until mid june. he is cautiously optimistic. >> what people do is they come here on vacation, have a great time and say it's the most beautiful place we have ever seen. >> up north buyers are already picking up places. the hamptons are back. rentals for the larger more expensive homes are booked. >> we have seen bidding wars in the four to five million dollar ran range. >> and many are eager to take advantage of rock bottom rates

while they still can. and squaer might just beat that. mandy? >> thank you very much. >> and all week long we are div like diana, off the dock of that chesapeake bay. beautiful house. big business of summer tomorrow. simon hobbs is going to tackle travel. on wednesday, jackie deangelis is talking summer entertainment which apparently involves a roller coaster. on thursday, julia boorstin is is looking at the summer's hottest movies. and phil lebeau is going to round out the week with planes, trains and automobiles. how come we don't get these things? >> we get the barbecues. we get to grill on fridays sfwl i'll be at the tilted kilt. up next, jc penney's biggest bull. he's going to make his case next. he might decide not to come on the show after that comment. [ male announcer ] we gave the new e-class

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ladies and gentlemen, we have a fight brewing over jc penney. sort of. research firm maxim group doing the previously unthinkable. ungrading shares of jcp from a

buy to a hold and slapping a new price target on the name. joining us the analyst who made the call, rick snyder. rick, first to you. i want to bring up a chart of mike olman's first run at ceo at jc penney from december of 2004 to february of 2012. he finished his tenure a couple bucks above where it began. but the stock was 75 bucks. went down to less than 20 bucks. why should we bet on mike ullman this time? he didn't crush it last time. >> they was taking over for allen kreshman who crushed it. i think mike is coming back to a much different jc penny this time. it's at the bottom of the cycle. he has a much leaner cost structure. very easy comp and gross margin compares. nobody knows how to drive traffic and sales at jc penney

better than mr. ullman at this point. >> we're calling you the calf. you're a smaller bull, not as bullish as rick. do you agree? >> i tend to agree. also with the comparables. what we have in the store is missing the entire home section for much of the last quarter. makes comparables fairly easy going forward. >> you're talking about sales and all this great stuff. i know people concerned about whether or not this company will have the liquidity to simply stay in business in five years sfwl that was a good question. that was a basis of my different call. i felt the company had different levers to use to get cash. >> it's pulled a few. >> they pulled two of the three i youth lined. actually the second one is going to be hopefully done by wednesday. we hope the pricing on that new loan may be better than original indications. >> rick, even if liquidity isn't a major issue near term, longer term is it going to be able to pay it back? be liquid itself longer term? >> i think so. i think what they're doing is going to drive sales, increase traffic, increase conversion.

and they are -- the customer is more fickle than i think wall street thinks. the customer will react to the sales. >> okay. so let me go to that. i want to ask both of you a yes/no question. the back story is this. tonight herb greenberg is going to buy me dinner. i was right finally 5 and a h ls later. rick, do you believe they will post positive same-store sale comps year over year any of the next two quarters? >> of the next two or this year? >> this year. whatever their fiscal -- put the next two. that's really our bet. >> the next i have them flat in q-3 and positive in q-4. >> i actually have more numbers. i do believe they're going to comp up this year. >> i'm going to lose my bet is what you're saying. that's good for shareholders. so we all win. >> fwgot to leave it there. >> thank you very much. coming up next, you think

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mandy, six weeks' vacation. cheap bordeaux. baguettes. >> i think it's worth it. i think we're also going to complain here about our taxes. we love to complain about our taxes. >> very, very true. >> merci. "street signs." hi, everybody. happy monday to you. welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange. this week trying to kick off on a winning note. not so fast. >> we have a new buzz term to keep an eye on. taper talk. >> yeah, right. >> taper talk takes its toll on the markets today. higher earlearlier. major averages in all time high territory. fed officials, especially charles evans of chicago, very bullish talk on the economy which led some to believe maybe theap