can we make is 17 in a row? or 19 -- one day i'll learn to read. if we close today -- we're up a pretty good amount today. apple on the hot seat over taxes. holding money offshore is not illegal, but is it ethical?

and of course we are bringing you the latest on the tragic scenes in oklahoma, one of the deadliest and costliest in american history. here are some of the amazing stats. it will be the 100th trading today of the year, and of course to bespoke, even if the s&p 500 trades down every day this week, 2013 will be tied for fifth place in terms of the most up days to start a year. if there's a few trades up every day for the remainder of the week, it will involved 65 positive days in the first 100, which will rank second all time high behind 1995. let's go straight down to the floor of the stock exchange, and find bob pisani. i would like to know how traders that you speak to are feeling ahead, especially as we've had even more fed members today adding their two cents' worth on the subject of tapering to the mix. >> i think they're feeling it's less likely mr. bernanke will

get aggressive. ahead the head of the new york federal reserve came out saying they might have adjust the pace up or down. he made it clear that the outlook is uncertain. he's not sure which way they're going to do, also the rick that markets might overreact. amen to that. we've been watching every comments for weeks now. mr. buller had said the recoveries was better than expected. he gave as indication that the fed was likely to continue with their bond purchasing pin for quite some time. the bottom line is the markets have rallied if you look at the bond markets and what's been going on. then the dollar also moved to

the dourch side. remember, mandy, the dollar has up most of this month. back to you. >> bob, thank you so much. >> so the s&p 500 is up about 17% since the beginning of the year, but will stocks come to a screeching halt tomorrow if we get more hawkish comments? joining us craig hodges, we'll get some picks from him. the last picks he brought us have turned out very very well. so we're waiting to hear the names. first, craig, this -- i know you believe a pullback would be healthy, but do you believe we'll get one? it seems like the market isn't coming down for anything. >> you're right. very, very healthy action, this is the broadest market i have ever seen. we manage five different funds and it's incredible how broad this is. it tells you it's a very healthy rally. i do believe we will get a sell-off. i hope it's in the 5% to 8%,

selfishly in that kind of i guess scale so we could make some better buys in here. the way -- there's such a supply and demand inequality going on with the market right now, there's all these buybacks, all the stock being taken out of the market. i sought the other day where buybacks are up 88%, so this decreasing supply of stock, and more people wanting to firchlly get back in the market, so i think it will continue throughout the remainder of the year. >> even if we get a pullback, to what degree will it be met by more buying. people are judd waiting to get in as a lower price. >> that's exactly what we're seeing. we may get a sell-off this morning, and, you know, the futures are down a bit. you have people sets overnight action and then where the market is down, people are kind of soaking it up that's definitely what we're seeing. >> we don't like lazies in.

so help us take some action, get off our butts, what should we be buys right now? >> in the hodges small-cap, we're mostly domestic. there's a lot of pitfalls worldwide, but we see a lot of booming areas, areas we're doing real well. i heard jack walsh say the other day the next year could be the equivalent of the industrial revolution, so there's a lot of opportunities in the energy. we've liked the airlines for quite a while. people are joining us on this limb, i'm glad to see that. airlines are finally at a capacity level where they'll be good investments for the first time maybe ever. and then there's specialty retail. and wisdom tree, wetf, that we see the huge, i guess, money comes into etfs, wisdom tree we think will take advantage of

that. >> and us airways, and delta, which by the way you recommended back on january 10th. since then us airways up 18%, delta up 37%. you're still saying buy these names now, even after the run-ups? >> yeah, they're still tremendously underowned. i think the estimates for both u.s. air and delta are roughly the same. around $3 this year, give or tail a little more, and slight increase is the following year. you know, nobody believes it. we're still in an investment scenario, the negative conostations there are still keeping people out of them, and it will be a mo me deal. >> we've got to go, craig. but don't underestimate us.

we believe anything now. the big story this hour is apple's tim cook is on the hill being grilled. in case you're wondering, apple is the largest corporate taxpayer in the country. eamon, you've been watching and listening, i imagine this will be a litmus test for some of the other internationals. >> reporter: that's right. in fact this particular subcommittee has been going company by company doing case studies. they're looking at apple releasing pretty revealing report last night, which revealed in fact that apple had created three subsidiary corporations that were not tax residents of any country anywhere in the world, and we expected that tim cook was going to face some grilling on that issue. what we didn't expect was this moment that we had with senator rand paul that came out even before tim cook began to testify. take a listen.

>> frankly i'm offended by the tone and tenor of this hearing. i'm offended by a $4 trillion government bullying, berating and badgesering one of the america's greatest success stories. if anyone should be on trial here, it could be congress. i frankly think the committee should apologize to apple. i this that congress should be on trial here for creating a bizarre and byzantine tax code. >> you're free to apologize if you wish. you can apologize to anyone you want. this subcommittee is not going to apologize to apple. we did not drag them in front of the this subcommittee. >> and the subcommittee didn't in fact apologize to apple. what they did do was question apple fairly intensely at times about why it set up these corporations, whether or not it was avoiding u.s. taxes, but the subcommittee also asked apple's opinion on how to reform the u.s. tax code overall treating them like subject matter

experts. a lot of committee members praising the products. leave at one point pulled out an iphone and said how great it was. it gave apple folks to have some breathing space in the hearing, and tim cook, of course came out to 2k6d his company. >> i'm often asked if apple still considers itself an american company. my answer has always been an emphatic yes. we are proud to be an american company, and equally proud of our contributions to the u.s. economy. >> reporter: so obviously there tim cook saying he's proud of what the company has done, sort of a mixed day for apple, not necessarily all the body plows landed on the company that a lot of people expected. >> eamon javers, thank you very much. let's not forget microsoft and i think hp have also been dragged in front of the congress for the very same reasons. david selig is a federal tax practitioners and advocate.

is this a case, david where it's like senator levin has been in the senate since 1979. he's had plenty of time to change the tax code. is this a situation where congress basic lip served up the ingredient and now ticked off that apple made the meal? >> very well said. i think a lot of the individuals who are response gourdian knot and get their rapacious hands on apple's money, they would probably slap them with a retained earnings penalty, which is the most in -- >> maybe we should be blaming prohibitive tax code, and maybe we need to change it. even tim cook said i would be happy to pay more u.s. tax if indeed you reformed the prohibitive tax code? >> i think we have to be very careful. even though there are some distinguishes in the code, on the whole it works. the problem with these fast solutions -- ivlts wait, it's not working if we're not seeing

the moving -- >> i understand that part, but what i'm saying a fast solution to a complex problem usually creates some unpleasant unintended consequences. i'm a big believer in granting whether you call it a federal tax holiday or such so these companies can bring the money back in, and it doesn't matter how it's distributed. it could go to different, it could go to bonuses, because that money is going to flow into our federal and state tax laws. >> what's the line -- you're a grocery boy sent by a messenger to collect a bill, something like that, right? the government needs money, right? so they're going after what they seeing is a problem. if you bring up the charts, i think you'll see would you some people are ticked off. right? corporate taxes used to make up 20%, 25% of the money brought in. it's now about 9%. the burden on the individual has gone up largely.

so does congress at least have a point, especially because it's broke? >> no, i have to tell you, without being disrespectful to you, i disagree with the arguments. >> what's to stop you? my co-host does it every day. >> the government has been printing an awful lot of money. it seems they're looking at they various coveringses as a convenient dog to kick. it creates the impression that these companies are getting away with something and we're carrying their water. >> we have to leave it there, but certainly it's food for thought. >> and very polite. >> very polite as well. >> yeah, see how nice he was. you could be nicer to me. >> and we're talking about tax, for goodness' sake. after the break, we'll head to oklahoma. plus almost two years to the date, we'll talk toll city

manager of the town last hit by a catastrophic tornado, joplin, missouri. where does oklahoma even begin? we'll ask him for some answers. available out there. i knew devry university would give me the skills that i needed to make one of those tech jobs mine. we teach cutting-edge engineering technology, computer information systems, networking and communications management -- the things that our students need to know in the world today. our country needs more college grads to help fill all the open technology jobs. to help meet that need, here at devry university, we're offering $4 million dollars in tech scholarships for qualified new students. learn more at devry.edu. for qualified new students. (announcer) at scottrade, our cexactly how they want.t with scottrade's online banking, i get one view of my bank and brokerage accounts with one login... to easily move my money when i need to. plus, when i call my local scottrade office, i can talk to someone who knows how i trade. because i don't trade like everybody. i trade like me.

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♪ now to the latest from oklahoma. here's what we know at this hour. rescue efforts are still under way in moore. 24 killed in the ef-4 rated tornado. that number was previously lowered from a count of 51 dead.

among the dead were nine children, and at least 237 people reported injured. the governor just announced up to 20,000 families could be displaced. countless homes, medical centers and malls all flattened, likely to be one of the top five most costly tornadoes in american history. first we head to jane wells in moore. >> reporter: i'm outside moore city hall where the governor is holding that news conference inside. here's what we do know. the medical examiner is saying there's only one firm number they know. 24 bodies coming to the medical examiner. they say that may not be the total number, because some families have taken their loved ones to funerals homes, so they don't have a full count. as you look at the latest video we have of the devastation, after drenching rains we've had today and hailstorms, they really do -- at least at this

moment is low. they field pretty comment, have mostly been found, though there's a few missing, as we show you the video, with a woman of brandy claimed two of hers sons were they elementary school where seven of the nine dead children were killed, drowned we are told. we asked them today, the survivors, the boys and their mother, what the experience yesterday was like. >> it was scary. it just scared me. i thought i was never going to see my mom again. >> i just thought it was going to take a long time to get some of the kids out that got stuck, and then it's going to take a long time to rebuild our school. >> reporter: do you know any of the kids who are still missing? >> yes.

>> i don't think i've ever been so happy to see my children. we all just cried and hugged each other. >> reporter: there's a lot of that. now the damage estimate is very plimtnary. we're see analysts from 1.5 to 4 billion. the governor says she's getting help from her neighbors. >> we brought in some resources from out of the state yesterday. many governors calling me, which i greatly appreciate. governor rick perry sent up three rescue teams with search dogs i wanted to to make sure we had an oversupply to find the people that were hit by this tornado itself. >> reporter: finally this video of the city website. while it mentions the tornado, it's a snapshot of what life was like, with the farmers markets announcement and a thing like a daddy/daughter dance. kevin durant of the oklahoma city thunder is promising a million toward the rescue

efforts, and moore city mayor got very emotional, thanking everyone from the president on down for their help. he said he also happened to be the mayor on may 3rd, 1999, when they had that other horrific tornado of over 300-mile-per-hour wrinds. he said, quote, this is not my first roddy, but it's never easy. back to you. >> jane wells, thank you very much. early estimates on the insured losses from the disaster as high as $4 billion. mary thompson has that angle of the story. >> mandy, the terrible twister likely to be one of the most expensive in history. within reach of that 2011 tornado that hammered joplin, missouri, killing 158 people, causing $2.2 billion in insured damages. yesterday's tornado tearing through moore oklahoma, an oklahoma city suburb. schools and hospitals damaged along with homes, trailer parks and cars, early estimates from a low of $1.2 billion to as high

as $4 billion. then aists don't expect to have a big impact any more than 10% to 20% on the second quarter earnings. they say given a las of catastrophes ensures the well reserves. so it shouldn't impact reinsurers. as for the insurance companies themselves, all decline comment on the potential impact, emphasizing their focus right now is on helping policy holders. despite the railroads wild westerly thunderstorm and tornadoes cutting a 1,000-mile past to dallas to minneapolis. the tornado season has been a tame one. through april, norman, oklahoma's storm prediction center counting 87 tornadoes, ranking ef-1 or stronger. the preliminary reading, the 11th lowers number since 1954. this changed last week when cooler air and most air created ideal conditions.

in the last week alone 50 tornadoes. the weather channel said sunday was the year's second most active day and more severe weather is forecast for this week. mandy back to you. >> mary thompson, thank you very much. the images were seeing is reminiscent from the ones of joplin, missouri. it was exactly two years ago from tomorrow tomorrow that a deadly tornadoes devastated that city. joplin's city manager joins us on the cnbc newsline. great to have you on the show, sir. i would imagine there's a lot of need in right now. where do we even begin? >> well, there's in for a marathon. they have a lot of challenges that they are faced with. we stand prepared to help them in any way that we can. i'm sure there's others throughout the region, state and even the world that are in a similar capacity.

so we're going to do whatever we can to help out. >> mark, once you complete the rescue efforts, what's the first priorities in the rebuilding? >> well, you want to make sure that the residents stay nearby, as close as they can, and provide housing options for them. hopefully some opportunities for them to continue their income by getting some cooperation from local businesses. and then you need to start planning, need to start getting the citizens active, conveying to their public officials what it is they want to see happen, and start putting those plans together and getting busy as soon as possible. the difference stages of disaster manage overlap, so they're going to have to do more than one thing at one time, but they have to start thinking about the rebuilding process. >> to what degree do they also need to think about prevention from future -- what lessons were

learned, for example, from your experience they took on board, and what more can we do? >> well, the council in joplin took that into consideration, and made some adjustments to the building codes they thought were appropriate given the circumstances, so there are those changes that probably warrant discussion, and other things involving the future of the city, and how you want to go about rebuilding that part of the city that's been damaged and your city as a whole. >> mark, thank you very much for your time today. good luck with you and your crew that's going to moore. we do appreciate the help. missouri strong, oklahoma strong. thank you very much. >> thank you. good-bye. let's brevard in chief meteorologist paul walsh, superstorm sandy, irene, snow, drought. you understand my point. ka tri katrina. are these becoming more

frequent? or is it media coverage? >> i think it's both. useal there's a market up trend in these kinds of events. two reasons for it. number one, there's just more exposure, more things in the way of these serious events, but we are seeing sort of a steady increase in these kinds of events. you can't pinpoint climate change, for example, but we are seeing these increased exposures action and insurance companies are paying attention to that, and thinking about that. >> do you think that pricing will go higher visit of this? >> yeah, we've seen pricing going up over the last couple years as it relates to things like hurricane sandy, irene, all these events we've been seeing, really over the last 20 or so years, but really over the last two, three years, we've seen these incredibly volatile weather conditions. >> but just to follow up on that, wouldn't it be unfair if

they used this particular tornado as an excuse to up their pricing considering it's been a quiet tornado season so far? >> i don't think they would look at this one -- i think when they look rat pricing risk, they look at it long-term, new data sources their available, radar data, ought sorts of different ways to look and price it at a level that's granular and very specification to a location and time of year, but the risks are changing. we're seeing that and insurers are seeing that as well. >> any way to plan at all for this? >> i think it's all about learning from the events that have happened, whether it's sandy or the event in moore, and thinking about resilience, building codes, where we're putting our houses, how we're building them up. the weather will not be getting my quieter anytime soon. >> thank you, paul. >> thanks, brian. still ahead, jamie dimon was

not the only one winning at the shareholder meeting. why? mr. sullivan got a big shoutout as well. and time to geek out. microsoft unveiling the newest xbox. we'll speak with the man in charge of the xbox business which "street signs" returns. time now for today's "return on rye tirmt" tax deductions or automatic saving plans? what works better when it comes to getting people to sock away more money for retirement? the results may surprise you. find out, next.

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so what's more effective in getting people to save more for their retirement? tax breaks or automatic saving plans? according to the center for retirement research at boston college, the auto saving plans nudges, as they call them, are the wait to go. so the bottom line, in this case it's good to be a nudge. check out retirement.cnbc.com for more tips on how to prepare for your golden year. a win today for jamie dimon

as shoulders overwhelmingly voted to support him keeping both roles. in fact, the vote to split those roles dropped down to 32.2% from 40% last time. in and among the seriousness of the occasion, a lighter moment. a shareholder stepped up to the mike roe phone and had this to say -- jamie's doing a very good job. you should give him a raise. jamie should listen to brian sullivan of cnbc, when this is all over, take your family and go on a trip to the greek islands. i believe that's a showsout to yourself. i wonder if jamie will take your advice and go to the greek islands. if i was him, i would. >> i could take his plane to -- thank you for that, by the way. microsoft unveiling the new xbox a short time ago. julia has a first on cnbc. >> reporter: we're joined by don

mattrick, he just came off the stage. thanks so much for talking to us today. >> thank sudden, julia. >> reporter: it was quite the presentation. the thing that was smoke striking is the emphasis on entertainment content mar more than gaming. i guess the big question here is due need to lure non-gamesers to make this console a success? >> well, xbox is built for gamers by gamesers. we made the decision if we unveiled the name, the form factor, the functionality, we had to give people the big picture. >> we'll show the most astonishing lineup of games ever seen. >> reporter: what is the biggest hurding to success, then? >> the biggest hurdle? >> i'm not seeing hurdles. i'm seeing people excited.

we have an unrivals device, a market poised for growth, and creators are building amazing experiences. we're stoked, and we know it will mean consumers around the world will get to do new things action richer things, better things in games and entertainment. it's an exciting day today. >> there's so many competitors when it comes to managing your entertainment. the question i have is, if i -- maybe not as a gamer, but someone who likes to manage my content, why should i buy a new console? >> well, do you love premiums experiences that give you access to all classes of content, that allows to do multiple things simultaneously and move from one experience to another just as quickly as changing a channel? if you love that, we have the box for you. >> great, well, we look forward to seeing more about this. i understand you have not announced a price tag yet, but

you say it will be out later this year. can you tell us how much it will cost? >> we're not announcing price today. we did announce it will be shipping around the world later this year there will be more news at e-3 and other events preceding the launch. >> good to have you on the show. my kids are huge fans. my son will be turning ten this morning, i said i said an xbox game, and he said halo. i said, what do you think of that as a choice for a 10-year-old. >> sure, well, parents can choose whether it's appropriate for a 10-year-old to play halo. >> that's too polite. >> i think it's a great game. other games that world well for 10-year-olds, mine craft, any of the sports, and we have a great racing series, so hopefully your

son will find something he loves. >> some excellent advice there from the man himself, don. thank you for joining us, and thank you, julia, as well. sony is also making gaming headlines this hour. let's send it straight over to josh lipman. >> have a look at sony. timing seemed to coincide with microsoft's xbox announcement it would have a blu-ray drive, but tomorrow they'll lay out a midterm plan, a three-year forecast. he says we might be seeing short cover here. dan loeb has disclosed he owns some 6% of sony, wants to see a spin-off of the arm. that stock up close to 9% right now. josh, thank you. up next, street talk, plus

we talk to the ceo behind the newest reit on the street. and finally who is paying the price for all those redibly lulls cheap prices for carnival cruises. ♪ [ agent smith ] i've found software that intrigues me. it appears it's an agent of good.

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and it is street talk time. let's take a first look at tesla. this stock has been flying high, but it is down again today. >> yeah, and it's down about ten bucks off the recent high. the reason is that tesla came out yesterday and surprised some people, saying it's going to repay the u.s. department of energy loan early, in fact as early as next wednesday. it's due in nine years. they got a $452 million stock and bond offering. also on twitter they said they maven a announcement on the super-charging system next week.

>> and we have saks rising. >> wow, up almost 10% today. the stock continuing to fly. same-store sales really crushed it. wall street was looking for about 2.5%. they see 4% to 6% the rest of the years, shares the highest since pre -- bring up that chart. maybe this is your shoes shopping, mandy, i have no idea, but that has absolutely soared. >> who said lux injure with was dead didn't know anything about anything. usualing outfitters is a -- >> that's the mystery of the street. the stock is down over 2%. they beat the street by three cents, revenue was 648, but here as the thing same-store sales growth up 9%, mandy. any store would love to have that. the problem? consensus was 9.3.

it wasn't good enough. >> it's all about expectations. hh gregg, however, is absolutely tanks on terrible numbers. >> this is a best buy competitor, in a bay that's electronics. fiscal fourth quarter profit fell 92%, same-store sales dpel, margins weren't good, but the stock's done well. if you're looking for a positive, here's the reason. this comes in a slow back action and that may help earnings, because they've been -- in fact they just opened one near me about a half a year ago. finally, a new listing on the nyse. chamber street properties. >> it is a ticker csg, market cap about 2.5 billion. and the ceo, come on into the picture here. we were just talking about it.

how are you? congratulation. >> hello. >> you live near me. you know where it opened up. we know space is competitive. that's your business. how do you see the commercial real state market? >> commercial real estate is really starting to pick up. we're seeing our tenants expand, building new buildings, we think that what we're seeing is a consolidation in the industrial distribution markets into larger facilities that are more efficient, that are going to provide, you know, speedier delivery. >> the one thing we saw with housing. tell me if this is a fair analogy or if i'm completely offbase. big investment funds ball you have thousands are or tens of thousands of homes and rented them back to their owners. okay? are you seeing the same thing with industrial and warehouse space? a lot of empty buildings? >> no. >> no?

>> no. not a lot of empty buildings. in fact construction is probably at an all-time low. in recent memoli i don't think it's been this low. where you're seeing activity is with companies like amazon or companies like p & g, kellogg's, unilever. they're building new distribution facilities, capitalizing on new rail systems, you know, intermottal intermottintermotta intermottal -- enter modal facilities. if you build the facility nearby, it cuts theship costs. >> and of course because we have a sophisticated viewership, and people with portfolios across the world, you have properties in the uk, also in germany. where do you seize in the word the best opportunities to acquire more properties? >> still in the u.s. >> if you say australia, you'll never be on the show again. >> i'm not fishing, by the way. >> we actually have a big

australian partner in europe, the goodman group. >> yes. >> we see a lot of opportunity in germany and in the uk, but our primary focus is on the u.s. we see great opportunity in the u.s., but right now there's good opportunities. >> you also used to run merrill lynch's real estate business forever. so quickly where would you invest personally or privately or through chamber street properties in the u.s.? what kinds of businesses? >> i'm a -- you know, i am an absolute fanatic about warehouses. i like warehouse distribution buildings. they don't cost a lot to operate. usually you're dealing with high-quality tenants, and they're on long leases. so that producing nice cash flow, puts money in your pocket, or in the case of shareholders, dividends in their checking account. so we like that. >> i think we have a nickname. warehouse jack. >> i like it. >> warehouse jack. thank you very much.

also, and remember you coined it here on "street signs." coming up a $50 smartphone? the latest battle brewing. >> and later on we are setting sail on the high seas. but first let's cruise on over to bill griffeth with what's coming up on "closing bell." >> let's do that? does apple have the responsibility to shareholders to pay as little in taxes as possible? that's what they're debating on capitol hill, and we will, too. also find out, after we look at the charts whether you should buy shares of jpmorgan now that jamie dimon will retain both chairman and ceo titles. and kkr, head of global macro and asset application will be with us. here exclusively to tell us why this history rally still has room to run. all of that and more, we'll see you at the top of the hour, meantime "street signs" coming your way.

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all right. so we've been debating and discussing here off set, sort of fighting, you know, about who to blame. because you need something to blame, right? is it the tax code or the companies for taking advantage of a loophole? we were debating loopholes. in my view a lot of people are forgets that -- what they companies are doing is, they're making the money overseas, creating an overseas corporation, and they're funding that money through the overseas corporation. a lot of this money never comes to america at all, has nothing to do with our tax code or the united states tax laws or spirit of the laws. so what are they taking advantage of? i don't know. >> i think the bottom line is trying to obviously work out whether something like gimmicky or illegal is being done. what appears to be at the moment is nothing is being done

illegally. >> what we're dealing with has nothing do is with america. apple's sure is an irish corporation. >> they're taking advantage of a structure that a lot of other multinationals, by the way, also take advantage of. i think tim cook said it quite clearly, the current tax code here in the united states makes it very expensive for them to repatriate that money back here to the united states and they recommend revamping the tax code. he said, you know, we want reform of the u.s. tax code, even if it means their tax bill here in the united states goes up. they want to do the right thing, but it's prohibitively expensive -- >> it's expensive, because they don't want to pay it. i'm not blaming apple, it's everybody. these are foreign entities with foreign money that happen to be set up by an american corporation. i would love to tell cnbc pay me in the cayman islands action and

somehow i'll get the money back here, right? >> i you this the -- we show this fantastic chart compared to some other countries out there like australia or switzerland, 35% here in the united states, 30% in australia, it's much lower, australia. i think it's 12.5% in ireland. >> but that's wrong, because the effective rate is like 18. >> okay, this is base rate, right? >> nobody pays that. some companies pay -- >> i think in the interest of shareholder -- >> i sound like a -- >> -- creative legally tax way to structure it. >> of course, don't contribute to any society and we can all have a race to the bottom. i sound like a liberal. and you keep saying, let's go, and i'm going to keep talking. there's a new battle brewing in the wireless war. jon fortt is at the ctia mobile market place in vegas and joins us with more. jon? >> reporter: it's a new and important battlefront here for companies like apple and samsung. i'm not talking about phones like this galaxy s4, i'm talking

about $50 smartphones. i know that sounds crazy. it used to be, you couldn't even get a feature phone for that. but now companies like media tech, qualcomm are really going to battle in india and china, trying to get this entry-level emerging market consumer. and that is a magic price point for them. those low-end emerging market smartphones actually are kind of like the iphone 3gs, a little bit more like that phone. they're really a couple of generations old, often running android 2.1. that's several generations ago. but for the consumer that's getting the first smartphone, who's got a really lowal vi compared to your typical iphone and samsung s4 buyer, it's a hung and important change. now, take a look at apple stock. just in the last earnings call, tim cook was talking a little bit about this trend, saying that in china, the iphone 4, the oldest generation current phone that apple is still selling, a

couple years old, is actually continuing to sell quite well. is having a little bit of an impact on margins. and i recently talked to paul jacobs, who said that they're really pushing in these new markets. that these chinese oems are managing in just 60 days to design and get phones approved. that's the new battleground, guys. >> jon fortt, thank you very much. great battleground. we'll keep an eye on it as well. coming up next, though, part ii in our business of summer series. the top picks for cruise line and hotel chains coming your way. a dose of luxury. all stations come over to mission a for a final go. this is for real this time. step seven point two one two. verify and lock. command is locked. five seconds. three, two, one. standing by for capture. the most innovative software on the planet...

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and the 2016 super bowl goes to san francisco. ricearoni on tap for everybody. all week along, we're looking at the big business of summer. and today we're setting sail on the cruise industry. simon hobbs is here, but he has been traveling and having a wonderful time as well. what did you come back wit, sim. >> this summer, carnival is issuing its second profit warning in two months, because it's slashing prices to fill its

ships. rivals royal caribbean and the freshly ipo'd norwegian have had better stock prices recently because they have firmer pricing. some analysts who were recommending carnival as a value play down here at the bottom are throwing in the towel. >> it seems like the perception problems here, that carnival has faced are continuing and it's going to take more time for this turnaround than we'd originally thought. >> now, in the hotel industry, data from bench marks str ventures that seven out of ten hotel rooms will be sold each summer night this year. that's almost back to the records that we set in 2007. again, the question is whether with that demand, hotel owners can raise prices. the ceo of sunstone is telling the likes of merritt and hilton and hyatt, who run his 26 big hotels to get more price ambitious. >> we're about 7% off of prior peak for hotel prices and we're

encouraging our operators to continue to be aggressive on driving prices, so that we can meet the demand with higher rates. >> reporter: in the meantime, the recovering property market should also allow big names that want to get more asset liked to finally sell off more hotels at worthwhile prices. >> we're pretty below lodging right now. our topic is starwood hotels. we think the company is going to return capital. they have roughly $3 billion of assets they're going to sell in the next couple of years. we think that goes back to shareholders. >> remember, mandy, this summer, it's all about the pricing. >> and there are so many fantastic deals out there. let's go cruising. simon, thank you so much for that. in the meantime, thank you for watching "street signs" today. >> that's right. "closing bell" is coming up right after the break. we call that show the love boat. (announcer) scottrade knows our clients trade

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investment management combined with investment servicing. bringing the power of investments to people's lives. invested in the world. bny mellon. hi, everybody. happy tuesday. welcome to the "closing bell." i'm maria bartiromo at the new york stock exchange. this market has moved to the upside once again this afternoon. >> i'm bill griffeth. now, if it's tuesday -- >> we should have expected it. >> if it's tuesday, what does it mean, maria? >> rally day! >> 19 consecutive tuesdays we've been trading -- i have traders coming up to me, reminding me of that. we go back to january the 15th. i was tweeting earlier that this has become the joe dimaggio stock market. i mean, he had 56 consecutive games where he hit safely. the dow up 19 consecutive