have an extremely wide tornado path, through just south of downtown, moore, oklahoma, a southern suburb of oklahoma city. we know there's tremendous damage, likely more damage than 1999 based on what we've seen on the radar. and from the helicopters there. and we know that there's going to be just extensive damage and a storm threat continuing in that part of the country where we have conditions still favorable for tornadoes going well into the evening until late evening eastern time. >> thank you, thank you, brian. we'll watch the weather channel for that. my observation returns tomorrow, here's "fast money" which begins tomorrow. thanks for joining us on "closing bell." we'll follow that story in oklahoma, as well. but right now, we are live from the nasdaq market site in new york city's time square. i'm scott wapner in this evening. here's what we're following on "fast," sculley speaks.

ipo boom, companies going public at the fastest pace since 2007. what does that say about the health of the rally? and falling for tumblr, why yahoo's $1 billion bet will pay off and what it means for the stock. we're here to set up for tomorrow with our traders this evening. pete najarian, brian kelly, and guy adami. congress revealing what it wants to hear from apple ceo tim cook tomorrow. cnbc's eamon javers has the latest from the nation's capital. eamon? >> well, it's hot off the presses here. here's the report being put out this hour by the senate permanent subcommittee on investigations. they've been doing a month's long look into how different companies are structured in terms of their offshore tax structure and what they've done here is take a very deep dive into apple, how it's structured around the world. and there's several top line findings. let me bring those to you right here. first of all, the company, the subcommittee here is saying that

apple has several entities that are not declared tax residents of any jurisdiction at all anywhere in the world. these entities were legally registered in ireland, but they're not tax residents of ireland. one of those entities is apple operations international. it had net income of $30 billion between 2009 and 2012. >> forgive me, i'm going to send it over to senator levin who is speaking regarding this issue. we're going to take that live. listen in. >> companies shift huge amounts of their profits to offshore tax havens to avoid paying u.s. taxes. apple does the profit shifting by transferring some of its intellectual property to subsidiaries in ireland. in this case to the irish subsidiaries the right to sell apple products anywhere in the world other than north and south

america. apple retained those rights. 95% of apple's research and development takes place in the united states. the secret to apple's business success isn't in the aluminum and steel and glass of an iphone, it's the genius, the genius is the ideas that bring those elements together in an elegant package. that intangible genius is intellectual property, it is nurtured and developed here in the united states. and yet it ends up that most of the profits are shifted to a tax haven, ireland. now apple will say they don't shift profits overseas. but that's a distinction without a difference.

but they shift the intellectual property rights overseas. it's like saying that you haven't shifted the golden eggs offshore after you moved the golden goose offshore. the profits generated from this transfer of intellectual property, end up not in the united states where the intellectual property was developed but in an offshore tax haven, in this case ireland. that is the heart of the tax avoidance strategy which apple has used. step one is a cost sharing agreement. before we get to the way that agreement is reached with

themselves, the intellectual property these days is the heart of the value of much modern value in production. it used to be that you put most of your value into assembly lines or machinery or into the products of those assembly lines. the value of intellectual property is growing more and more and the profits from the ownership of that intellectual property is what has been shifted. not in the way that microshoft shifted by shifting all the intellectual property to a tax haven and then buying it back from yourself and then those payments would be the transfer offshore of the profits. in this case, it was the shifting of the intellectual

property ireland, the rights for everything other than north and south america and then with a transfer agreement paid very, very little for that intellectual property, ireland pays a penny and gets back a nickel or they pay a dollar and get back $5. the irish company which, of course, is owned by apple itself. now, apple is not satisfied with shifting profits to a low-tax offshore haven. apple then sought successfully the holy grail of tax avoidance. it created offshore entities holding tens of billions of dollars while claiming that it was a tax resident nowhere. those irish companies that they created have a tax residence

nowhere according to apple. now what we intend to do is to highlight that gimmick and other apple offshore tax avoidance tactics so that american working families who pay their share of taxes understand how offshore tax loopholes raise their tax burden and how those loopholes add to the federal deficit and why those tax loopholes ought to be closed. the tax -- the -- excuse me, the cost-sharing agreement is kind of step one on the tax avoidance road. it is entered into with its irish affiliates. but the agreement is not about dividing costs even though it's called a cost-sharing agreement.

since all of the signatories to that agreement work for apple and all of the costs are paid out of the same pocket, and if you need additional proof of the fact that the cost-sharing agreement, so called, is not an arm's length arrangement, look at the results. over the last four years, apple's offshore subsidiaries paid $5 billion in costs, received far, far more back than they paid. and apple on the other hand, itself, when paying a large amount relatively received a small amount back. about 2 1/2 times the profits were received by those irish subsidiaries and there they sit. and was obtained by --

>> all right. we've been listening to senator levin down on capitol hill details -- detailing the issue of what he says is apple using tax havens in ireland to avoid paying u.s. taxes. in his words, that the company sought the holy grail of offshore tax avoidance by shifting its profits around to a low tax offshore haven. again, those are the senators' words. eamon javers is still with us. you know, iowa man, the issue of tax havens is really nothing new and the corporations who have used them in the past or attempted to use them in the past. i can't help but wonder if by using apple as the poster child, smart levin and others think that the issue is going to get more traction. >> well, absolutely, scott. the senators here think that they would like to see tax reform done in this country and they'd like to see something done about what they call these loopholes here. and i should say that apple has said it doesn't use tax gimmicks. what levin was talking about when he said the holy grail of

tax avoidance is this question of subsidiaries of apple that are not tax residence in any jurisdiction around the world. they may be legally registered in ireland, but they're not official tax residents of the country, also not of the united states or any country anywhere around the world. that is the thing that the committee is saying has never been seen before by them. and a lot of tax experts they say they spoke to expressed astonishment you could have these so-called countries -- what they're saying here is these entities like apple operations international had net income of $30 billion in 2009 and 2012, but paid no corporate taxes anywhere in the world from that period of time. 2009 to 2012. also, couple more details for you here on apple operations international. that's the subsidiary that's at issue here. it's got a mailing address in cork, ireland, but the subcommittee says it has no

physical presence anywhere in the world and it's got no employees and two of the three directors are apple inc. employees based in the u.s. in california. so they're arguing here this is not an arm's length distance between these two entities, it is, in fact, operated and controlled out of apple headquarters or out of california by 2/3 board of u.s. people here. the subcommittee's laying out a lot of detail. what you'll hear from apple is they didn't do anything wrong, they pay an enormous amount of taxes, they'll emphasize the $6 billion they paid in 2012 in taxes and say they are among the largest if not the largest corporate income taxpayers in the united states. and tim cook is really going to be on the hot seat here as he goes up to capitol hill to testify, to defend this and explain it in terms of the average american can understand. >> it does put the issue of corporate tax rates front and center. and tim cook and other ceos have made no secret about the fact

they think the corporate tax rates in this country have some 35% are simply too high. when apple recently announced its dividend, the reason why it didn't bring the money offshore to pay for the dividend was because of the corporate tax rate. that's why they went to the bond market, 2% was a lot more appealing than 35%. john chambers has said similar things, as have other ceos. >> that's exactly right. the subcommittee here says by their tally, apple has $102 billion offshore. they can't bring that money back into the united states to do the kinds of things that you're talking about without paying that threshold tax. and what tim cook is going to do tomorrow is propose his own solution here to that problem where -- whereby they face that 35% rate if they so-called repatriate that money back into the united states. a lot of folks in corporate america have said we shouldn't pay anything to bring that money back. it was already taxed by the home country overseas. that should be able to be transferred to the united states. cook is going to advocate for something a little bit more nuanced than that.

he's going to say, yes, we should pay something but it shouldn't be as high as 35%. he's going to try to make a policy argument here, but it's going to come amid these revelations of subentities of apple that were sort of stateless companies without a country. and there are a number of other details in here about the tax structure that apple uses that might be news to a lot of people who follow the company very carefully. >> yeah, no doubt about that. it's going to be a big day on the hill. thanks for that. coming up after this short break, we'll talk to john sculley, not only on this issue, but whether apple has lost its mojo and what it needs to do to get it back. tomorrow's also judgment day for jamie dimon, is he going to lose one of his titles? we'll ask the noted banking analyst what that means and how you should be thinking about the company's stock going forward. much more on the other side of this break on "fast."

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♪ all right. welcome back. some explosive words just a few moments ago down on capitol hill with senator levin accusing apple of using tax havens in ireland to avoid paying u.s. taxes. that's going to continue into tomorrow, of course, when tim cook is down there before a

senate committee. but tax issues are just one of a number of challenges that apple's ceo tim cook will be facing. for some context, let's get reaction from former apple ceo john sculley. welcome back. nice to have you on. >> thank you. >> what do you make of what's going on down on the hill today? do you think congress is just using, trying to make apple as an example? >> i think the tone that senator levin was setting was to make it look like he had uncovered some, you know, great activity that apple was doing that wasn't legal, and that clearly is not the case. everyone in the high-tech industry has long used tax planning because we have the highest corporate tax in the world, the high-growth countries in the world are typically 10% taxed, we're 35% taxed. tax planning is totally legal. i think most ceos in the high-tech industry would love to find a way to bring well over $1 trillion that's offshore back

with some plan that would be in the best interests of the country for reinvestment and in the best interest of those corporations and maybe tim cook will have some ideas tomorrow. >> you know tim cook is going to be on the hot seat tomorrow, that's for sure. but in reality, sir, and he's been on the hot seat now for several months as the stock has gone from $705 to where it is now. why do you think that's happened? do you think apple has truly lost something here as many people have suggested? or criticized the company for lack of innovation and other things? >> well, i think that the market has overreacted. apple has an extremely talented executive team. tim cook has done a great job taking over from steve jobs. what i believe is that the key moment for tim cook as a leader is going to be what's called wwdc, the worldwide developer conference on june 11th. because what he says there along with his executive team really will be the road map for all of the new products that he has set

the expectation for that will begin the last quarter of this year throughout 2014. so that's a very, very seminal moment for tim cook and his team. >> do you feel that apple's late to the game in developing these new products? i know people are going to be looking toward that event. but those are products that will be down the line. people want to see something new, good and something now. >> apple does have good products. i believe that the tactical decisions of filling out the product line for the iphone probably a lower cost iphone, maybe some, you know, features that are more like what samsung has done really well with larger screens. but those are tactical moves. the strategic moves are all about icloud, developing the software platform. they have a $16 billion run rate services business with app store and itunes. and that's a tremendous franchise to build on, but there are some things that are missing in that, and i think that google did a terrific job last week at

google io of raising the bar. so apple's got to meet that challenge and come out with a very clear story for its developers, how it's going to do, hopefully some creative leaps and that's what apple has been best at, creative leaps. the problem today is it's not being valued as a creative leap company, it's being valued as a predictable value-based company. and it's sort of crazy to think that apple is trading at the same p/e as dell. >> karen? >> mr. sculley, it's karen finerman. on the last call, tim cook seemed to have made a point about a new revolutionary product in the short-term and really saying don't expect anything from us until fall or even 2014. so what is it that you hope he would or expect him to introduce or talk about june 10th or whatever the date was for the conference? >> yeah, june 11th. i don't have any inside information as to what tim cook or apple is planning. there's a lot of speculation

they may come out with an iwatch, that would have a very high resolution screen on it. if they did, apple would do a great job with that. there's been speculation they might come out with a tv product that could be a very high resolution tv. those are speculative products. what i'm much more focused on is what they have to say about their software platform. the icloud. the things with icloud that have fallen a little bit behind google, particularly since the announcements that larry paige ma made last week. in terms of the road map for icloud. and i think apple will be back in a position where they can be looked at as creative innovator again and hopefully the market value will reflect that as we go out into 2014. >> and let me ask you and respectfully so. i don't hear many people in the marketplace or on wall street saying that they want to hear more about icloud, or their

software, they're talking about should apple come out with a bigger screen? should they sacrifice margins by coming out with a cheaper phone? what are your answers to those questions? >> well, i think those are tactical moves and i would expect without having any inside information that apple will address that. it makes total sense for apple to have a broader product line like samsung does, a lower cost iphone for the asian markets like samsung does. but i think that that isn't going to make it a creative leap company anymore. that's really an adjustment in the product line. i think the creative leap is going to come in being able to show that they can make real advancements in their software platform. and i suspect that there's a lot of room for them to be able to do things with higher resolution, to take advantage of broad band, to be able to make their messaging work cross platform, not just on apple's own platform. there are a lot of things they

can do. and i think if they do, they have a chance to get the creative juices flowing again and people feeling excited about apple. and they still have the best content of anyone with mobile devices. >> yeah. it's good to have you on, thanks so much. >> thank you. >> thanks for bearing with us too at the top with the breaking news. guys, pete, what do you do with apple here? >> i think, apple, finally the other day showed us something with some of the volume. just last week late in the week, we saw a big turn around day, a lot of volume attached to that. the innovator that sculley and steven jobs pointed to in the past. that's the man, johnny ivy, when you look at what they've got to do, they come out with a cheaper phone, bigger phone, compete with samsung, but talked about the cloud and that's something underestimated by folks. we talk about a second half story, we're just about the second half, i think the stock's ready to move. >> guy? >> you know, pete, the day he mentions is may 16th, when it traded down to 418 and change. didn't have a reversal date, but

obviously the volume was there and the move was significant. and i think we had come to an inflection point now. it's going to be interesting to see tomorrow if it can shrug off whatever you make of this news. if the stock can close up again tomorrow, i think it all goes well for the stock. >> guy points out that low, that's something to shoot against and there'll be some anticipation in this stock as we go into the june 11th meeting. apple learned the lesson last fall when they had the apple iphone 5 come out, you know, maybe they're sandbagging, i don't know, i don't have any more insight than anybody else. it seems to me they're not going to let anybody know about new products or let those rumors out anymore. >> what about the point that, you know, people only have a finite amount of money to invest or investigators are playing the markets. yahoo just gave people a reason to look at that stock. google has given people a reason to continually look at that stock as it's climbed. is money that may have gone to apple in the past going to be

drawn towards yahoo and google? and is that going to hurt the stock? >> they're going to want to look at apple again. >> i've been looking, i'm long, i've held it all the way. but yahoo, the size of yahoo is, i think, $28 billion, so relative to apple, that's not going to move the needle. google is starting to have a market cap that has been attr t attracting apple money away. >> i think the market to karen's point, i think the market's big enough to absorb it. if you look at the performance, there was a day last week where google higher, apple lower. i think it was the day we spoke of. to your point, maybe a little of that's going on. i think the market's big enough for all three to survive. our traders reveal the top trades of the day. plus, the vote which could help decide jpmorgan chief jamie dimon's fate. one of the street's top banking analysts. tdd#: 1-800-345-2550 opportunities are waiting to be found in faraway places.

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let's get back to the markets. now today's top trades. >> love the financials. six of the top 20 of the option world right now was all trading in the financials. it was citi, bank of america, jpmorgan, go down the line, the xlf, as well. upside call buying continues. first time since september 2008 that we see the xlf over 20. i think it's going higher. >> you know what i did today, the biggest trade i did was buying back my short in gold and silver. you saw last night, sunday night, silver down almost 9%. real thin markets, but they soaked that up. you look at gold 1,320, you're probably looking at 1,250. it was up almost $30 by the end of the day today. massive reversal. >> why do you think that happened? people have been looking at gold and the slide down eight

straight days. why a midday turn all of a sudden? >> yeah. to me, it felt more like a short cover. i think there are plenty of people out there that were short. bounced off that technical level. spent the whole morning trying to hold that technical level and it did and then once everybody got going, it just accelerated. you did see -- i mean that's really probably about it. you could go into the chicago fed natural activity index this morning, show that the economy was a little bit weaker probably than people were expecting. so maybe you have the back draft of more qe, for now, i'd call it more technical. >> timkin options, i think the july options should work for the company to announce whether or not they'll split it. or you can buy some common. >> gamestop, they report on thursday, i know it sounds crazy, down about 2% today, but close to a 50% short interest. and what's been happening over the last couple of months, they're ripping people's face off to the upside, i think gme

might do it after the bell on thursday. >> jpmorgan chief jamie dimon in the cross hairs, shareholders getting ready to vote on whether to split the roles of chairman and ceo at the bank's annual meeting tomorrow. wall street keeping a close eye on those results. dimon threatening to quit if the roles are split. let's bring in the equity research analyst at sanford bernstein, brad, welcome back. >> thanks for having me. >> what do you think is going to happen? >> well, we don't know. you know, what we have -- >> you have -- i'm sure you model, you know, either way. you think he's going to get stripped to the chairmanship or not. i know you're thinking about it. what does your gut tell you? >> well, of course you are. the issue on this one is you have activists that are saying -- that good corporate governance you should split, right? and you've got -- you've got a group of people saying if it's not broke, don't fix it. in the case of jamie dimon, what we have is a well-performing executive with a well-performing company, and we -- you know, we

have some academic research that just came out of indiana university that says if you take a standing chairman and you demote him, it changes the performance of the company. so if it's a bad-performing company, it's good. if it's a good-performing company, it's bad. that just kind of makes an argument that, you know, jamie doesn't appear to be a monarchal ruler. he's got a leading director lee raymond who certainly can stand up to him. and so the issue on this, do we have balance of power? it may not be theoretically the best model, but seems like a good model. to me, the issue on this is all downside. if this -- if this gets taken away, it adds downside to the stock. if it -- if jamie stays and everything remains as possible, then what you have is you have jpm like the other financial institutions participating in a

recovery of the u.s. economy, a small investment banking rebound and a trading rebound. you know, it's a great story at jpm. >> how much is the jamie dimon premium worth? talking 10%, 20%? 50%? >> no, that one -- i'm sorry, that's one i'm going to dodge. the issue on that is, you know, is -- are executives irreplaceable. and the answer is no. no one is irreplaceable. but jamie is a very, very capable executive. and it, you know, this is -- this adds an uncertainty to action going forward. it would not be good. >> but as an analyst, you have to model, you know, as the analyst, don't you have to factor that into your model? you said the stock's probably going to get sold off if he takes his ball and leaves. where do you think the stock can trade down to if, in fact, that does happen? >> guys, this one is -- there's

no model to look for for this. i've tried to find, you know, a company that has thrown out a capable executive or an executive who left on his own. there really isn't a good history to look for. all we know is that, you know, jamie has grown over the years. we saw him successful at bank one, successful at citi and successful at jpm. and he's led this company through a very difficult time. he's taken the slings and arrows of the -- of regulators and really been sort of -- >> but he's also overseen a financial institution that has had a number of problems, public relations and otherwise, over the last year. let's just tell it like it is. >> sure. but do you let someone like that go? >> i'm not saying you should. you know, let's consider -- let's consider both sides of it. i think everybody has a tremendous amount of respect for

jamie dimon's charisma and leadership abilities, what he did through the financial crisis. but the last 12 months and perhaps a little longer have not been great. >> well, it's -- it's -- i don't know whether we should use a catholic theological issue with jamie dimon, but he's done his mea culpas. he's taken -- he's accepted responsibility for it and he's made the changes that are necessary. i look at this and say we've got a capable executive, you know, why do we want to demote him at this point. now, if you have a board that says we should change the way corporate governance is at jpm, the issue on that is let's do that the next time we choose a ceo. all the academic study backing that up says that doesn't really hurt the stock at all. that is positive and is good. >> brad, we've got to run. i appreciate you coming on, but

we're also following those violent tornadoes that have gone through oklahoma. we want to get back to bertha coombs with breaking news. what can you tell us now? >> that's right, scott. right now, there is a tornado warning in effect northeast of oklahoma city in lincoln county. it will remain in effect until 5:55 eastern time. the majority of the damage so far is on a twister that touched down at oklahoma city and south of oklahoma city in the suburb of moore, oklahoma. this suburb was hit hard back in 1999 but an f-5 storm and the pictures we are seeing are of tremendous devastation. so far, emergency management officials say it's too early to talk about any injuries. however, our affiliate in oklahoma city says at least two schools were heavily damaged. as you can see there, an awful lot of the suburb flattened by those dangerous storms, unclear

whether in those two schools that were heavily damaged whether there were any people inside. we'll have an update coming up in a few minutes. >> thanks so much. bertha coombs. still to come, yahoo paying a hefty price for tumblr. was it worth it? kathleen smith of renaissance capital tells us why the market is seeing the biggest revival in years. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪

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welcome back. yahoo is holding a special event just up the street in new york city as we speak. jon fortt monitoring the developments there and joins us with the very latest. jon? >> scott, this is pretty phenomenal in that it shakes up the online media and storage space. listen to this, yahoo is announcing that flickr has a free terabyte of storage. this undercuts the pearl offering they used to have. put this in perspective, both google and drop box charge at least $50 a month for a terabyte of storage. yahoo is offering this, granted just for photos, but for free. a clear play to tell the world we're serious about photos, we're serious about design, we're serious about gaining share in online media.

all the photos ever taken in the world would only take a tenth of capacity that yahoo has available total. saying that flickr reaches 89 million people right now. there are more than 8 billion photos on the site. they expect a lot more to come online. also interesting, yahoo is taking over the old "new york times" building, not too far from where you are right now. there was rumor that others including facebook and amazon were looking at that commercial site. yahoo has gotten it. mayor bloomberg talking about how big of a deal this is. this commitment to new york. they're going to be able to consolidate all of their new york employees into that one location and room for 200 more. so expect this to be sort of a cultural center for yahoo that gets to remake the space and image that they p want. they've also got tumblr in new york that has its own edgy

culture that mayer wants to embrace. also considering the advertisers and agencies that yahoo needs to reach to grow revenue are going to know this office as their primary point of day-to-day communication in how they interact with the company, scott. >> would you consider this a cloud play? >> oh, for sure. >> by yahoo, right? >> yeah. this is definitely a big cloud play. it's in a specific niche, though, which is photographs. and people on twitter reacting to this have been saying, why not just go full boor after drop box. i will point out, that flickr did allow video sharing also. i'm not clear on how that fits into this storage. mayer was talking about photos. this is very much a cloud play. yahoo flexing its muscle, a lot of data center capabilities saying we can play with the biggest dogs in this space offering a terabyte for free. that's something no one else has

done that i'm aware of. >> now, mark, with rbc, i'm sure you heard this news from jon. your reaction. in 24 hours you have social, mobile, cloud all in play and three key areas that yahoo was next to nonexistent in last week. that's overstating it, but you get my point. >> yeah, yeah, yeah. look, melissa acknowledged when she came in as ceo of the company underinvested and underinnovated in a few areas and to look out for what she was going to do there. she's following the right script. whether they execute well on it remains to be seen. these are the biggest trends. so they're doing the right things, it's all about execution from here. >> they pay too much for tumblr or what? >> you can't justify it on a dcf basis. i don't think you could have done that with youtube either. it did work overtime, it would depend on the execution.

this is a long shot investment and they're not going to make a real return on this for three to five years. it's impossible to justify this. the question is, is it the right strategic asset to take a shot at? >> long shot, though, sounds like it has a little bit of skepticism. >> absolutely it does. there's a lot of competition in the space. and as we've seen these social networks, their users can come and go. if you put too many ads on tumblr, who knows how the users are going to react. users migrating away from the biggest social network of all, which is facebook. they may do the same thing with tumblr, it's not a guarantee this is going to work. >> mark, what would be in your opinion some of the other names everybody ought to be looking for. when you look at the numbers, it's amazing. $1 billion. they produce what $13 million or something like that. so when you're looking around, what would be maybe a better fit for them right now in the near term rather than this long shot longer term look? >> well, you know, you've got -- they've partly got some -- they may have limited choices here. look, there's great assets out

there, but you try to buy twitter, you're not going to find any sellers of twitter. pinterest may be too big now to afford. you've got kind of the sweet spot here, like $1 billion minus acquisitions that you can take. take a shot at that can develop over 3 to 5 years. i don't think they could buy some more of the more interesting assets. twitter and pinterest. >> they seem to be trying to monetize. >> yeah, i'm going to stick with facebook. i upgraded this thing at $20. i feel like it's in a trading stock right now. you go somewhere between 30 times earnings and 40 times earnings. this thing probably generates 30% to 35% earnings growth. and sentiment here is clearly negative on the name. arguably it's the most -- that and netflix are the most controversial stocks in the space. in the mid-20s, yeah, we'll take a shot and we think it's worth $32. >> what would be more impressive, facebook getting

back to the ipo price or yahoo getting back to the takeout price? >> i think yahoo because yahoo's got this asset that you've hit me on a few times of these collections of assets in asia that's been behind a lot of the move in the stock to date. that's going to cause the stock to continue to grind higher. we're going to let you run. we've been following a lot of breaking news this evening. again, that breaking news including these devastates tornadoes in the nation's midsection out in oklahoma. we want to get another update now with bertha coombs who is following that story for us. bear sha? >> scott, the most devastating damage appears to be in moore, oklahoma, a suburb south of kansas city. and witnesses including a veteran kfor reporter saying it's among the worst damage they have ever seen in terms of tornado damage. and this is a city hit hard back 14 years ago, in 1999 by what was an f-5 category. that was the highest category in

terms of wind speed you can see for a tornado. the reporter there describing the rescue effort underway right now at one of the elementary schools that was heavily damaged, plaza towers elementary. this has children and teachers are being pulled from the rubble while in tears are searching through the area. parents are being held back in some cases by authorities to wait until the area's safe. the town has asked people to stay away from those areas if they don't need to be there. as you can see, the devastation so difficult it is a dangerous situation right now. there was a second tornado warning for the area to the northeast of oklahoma city. in lincoln county, that tornado warning now expiring at this hour. last track the national weather service said there was a storm located in the area and there was a lot of damaging hail of

2-inch diameter. one of the things is a tornado touches down indiscriminately but does leave a lot of damage in the wake. the hail damage alone often destroying homes and cars. back to you. >> all right, bertha, thanks so much, bertha coombs with the latest on those devastating tornadoes out in oklahoma. we're back after this. [ male announcer ] with wells fargo advisors envision planning process, it's easy to follow the progress you're making toward all your financial goals. a quick glance, and you can see if you're on track. when the conversation turns to knowing where you stand, turn to us. wells fargo advisors. we went out and asked people a simple question:

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welcome back to "fast money" live at the nasdaq market site. let's get a quick check on two stories we're following right now. couple of stocks that were moving in the afterhours session. there there's a look at apple. congress levying big charges against apple. certainly from a verbal sense that they've been avoiding paying taxes for a number of years. certainly at a rate they should be paying. and also yahoo, higher after this -- certainly on the heels of the tumblr announcement but also regarding flickr, an event taking place up the street from us. we'll be following those stories tomorrow. up next, the new ipo doing what facebook should've done.

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don't look now, but 2013 is on pace to be the best year for ipos since 2007. there's been nearly $17 billion

raised year-to-date, and that's a 31% increase from the same period a year ago. what's behind the momentum, joining us for a deeper dive is kathleen smith, co-founder of renaissance capital. nice to see you. >> thank you. >> why the resurgence. the markets have been raging. that has to help. >> we've had a number of years of lots of volatility. and the ipo market is starting to come back. tleez these levels will be the best since the financial crisis. it's a good time for the ipo market. >> i think one need only look at of last week, which was a tremendous success, i guess by all measures. other companies see that and maybe they're spurred to go public now. >> they became two of the top five performing ipos for the year. you have to look back a little bit although in an area that the market likes.

the ipo market didn't start to come back until facebook did everyone a favor and kind of set a clearing price on the market. after the facebook ipo, anyone with an ipo strategy we run a global ipo fund, that strategy was up 36% since the facebook ipo. our index is up 33%, and so for the first time in a number of years, ipos as a group are outperforming benchmark indices. that makes investors come in, want to look at the asset category, and we've seen that kind of environment, especially so far in 2013. >> well, we have a number of months to go obviously in the year. we'll see what develops. thank you so much for bearing with us on the breaking news. we'll have you back soon. kathleen smith again with renaissance capital. more "fast money's" just ahead. ♪

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