2014 or perhaps 2015 affair. the industry no doubt a lot healthier than it ever has been, but the dividend, well, that's not the number one priority right now. before we go, take a look at the market on wall street today. it was a pretty good comeback by the close, but it is still ended double doyjts the downside. the dow industrials down 76. nasdaq gave up 20, and the s&p down 9 points. have a great day, everybody. thanks for joining moan on "closing bell." and thanks to deutsche bank for having us at their global conferences. "fast money" begins right now. ♪ gone with the wind live from the nasdaq markets in new york city's times square, i'm melissa lee. we have a very special show this evening. the traders for tonight are stephanie link, rebecca patterson, erin gibbs, and karen finerman. let's get straight to the story "fast" is following for you tonight. the stormy markets. don't let the closing numbers fool you. volatility is back. the dow's swing was 190 points from top to bottom.

ten-year yields, take a look at, this approaching 14-month highs. as we head into the job reports on friday and is it time now to back off risk? karen finerman, what do you say? >> i actually am a little bit more cautious. i mean, we did speaking of volatility, the vix actually went over 17 today. i think it all has to do with the fed in that if they take the punch bowl away, that's scary. and i think obviously that's down the road somewhere. but i think it may be closer than we fear. so we need economic data right now that is only in the middle of the fairway. not too cold, not too hot. that's going to be hard to do. >> at the same time, this jobs report, stephanie, is not going to be the end all, be all. it's going to come out and the fed is going to change course. it's going to be accumulation of data at this point. >> that's exactly right. even if it is good, we're going to see a couple of months of better than expected data, for one. i will say this, that the economic data over the last couple of weeks has been uninspiring, right. initial claims, gdp, just really kind of a malaise that has sat.

in and that's offset somewhat by the pmi numbers, by consumer sentiment. so i think you're kind of running at about a 2% rate. i don't think if the fed starts to taper, it's going to be really aggressive. that said, we have been leaning towards cyclicals since about may. and since that time, cyclicals have outperformed defenses by 5%. i wouldn't be surprised to see a giveback, a little bit of profit-taking. at the same time, the defense has gotten crushed. you have to be flexible, just like the fed. >> it seems like it's the goldly di locks kind of market. auto sales were quite good across the board. for punch bowl lovers, it seems this is exactly what you want. >> right. i would note one thing on the short-term for interest rates is people have really changed their positioning in treasuries there are a lot of shorts out there today. and for yields to go up a lot higher than here, for people to extend the position in treasuries, we would need some really strong data, whether it's tomorrow with the adp and the beige book and the service sector sentiment, or the nonfirm

perils themselves. >> erin, what do you make of this push and pull? one day we're saying that the tech trade son. and here we are asking is risk off at this point. >> this is very much an economy of two steps forward, one step back, just like we've been seeing these mixed indicators. and we definitely see that i think the tapering talk is a little premature. certainly those dividend-yielding companies have had a nice run up. but we still feel it's a little premature. >> let's bring in louise yamada, the managing director of yamada research. she'll be sticking with us for the entire hour, giving us a technical perspective throughout the various stocks. you're actually seeing some positive signs for the overall market. a structural bull, if you will. >> well, yes. we've been establishing the evidence over a period of about a year, pieces of evidence that could argue that we are beginning a structural bull market. with the liftoff and the s&p 500 through the 2007 and the 2000 peak. we wanted to have a significant

lift. it's about 8% through now. but in agreement with you, we're also seeing a little weakening under the surface of the indicators. so typically when you break out from something that major in terms of a multi-year breakout, you get some kind of a pullback possibly to the breakout level. from a shorter term perspective, we could see it come back to 1550, 1500 over the short-term. i mean, remember from the 2011, you're up 52%. we're due for a little bit of a rest. >> all right. a little bit of a rest that might fit in, stephanie in terms of a pullback, shorter term yield play. if you look at the xlu or the xlp, it really reflected this notion that people either want to have risk off or go to safety. >> and last week we actually sold some of the health care names because they've gotten extended as well. looking at something like a johnson & johnson which is a great company, but you're up a

lot. it's had a nice run. i think at this point what you really want to do is be flexible in terms of stocks. so instead of saying i'm going to be all in cyclicals, you got to be looking at some of these stocks, for example, like a verizon today. i was impressed it actually was up. the stock has been down quite a bit. but that's a defensive stock, right? that's not a cyclical. and at the same time, i'm look at some of these industrials that were just hammered over the last couple of days, in eaton or 3m there are a lot of names you can pick. you want to have cash on the sideline so you can be available to buying some of these names. >> one of the sectors, rebecca, that you would most want to get in to at this point on the pullbacks we've seen. >> sure. our portfolio is very bottoms up. some of the sector tilts that come out of that don't always scream growth or defensive. but right now, to your point, stephanie, i think we are flexible. so we're underweight materials. we're overweight consumer discretionary and tech. so you could argue what are you? are you growth or are you defensive. and the truth is we're going to be looking for really strong companies that can sustain

earnings. the dividend yield is the cherry on the top. but that's not our focus. >> karen? >> i like the banks. even though they've had a tremendous run this year, i think that if we see rates rise and good data that. >> should be the beneficiary. i understand that the refi business will slow. but the chance to initiate loans in a bigger spread is a very good thing for the bank. >> and if i could take us a step back for a second, i think it's important. we're all getting nervous about rising yields right now. since 2009 when yields have risen, stocks have risen. if you go back to 1900 or 1950, the correlation between yields and stocks is effectively zero. so we're making a big mountain out of this. and right now it feels like a mountain. but longer term, this might be more like a molehill. >> the higher yields gives you more interest in earnings power. we haven't had confidence in earnings power at the banks in years. i think the backup rates just gives you that. >> and erin, you still like the

reits. >> we're looking at 5, 6% yield. but we believe in them fundamentally, especially a couple that are less exposed. >> like avalon bay. >> boston properties is a commercial one. fundamentally they've been getting beaten up because of the industry. they're still great companies, and on top of it you get dividend. >> why avalon bay? it's been an underperformer for the past year as well as year to date. >> my big push of avalon bay, as we do expect housing prices to increase we expect mortgage rates to increase, avalon bay is very specific to cities that have a high bear to entry. as you can't afford that mortgage as the houses prices get too expensive, you can still rent at a great place. and they really have a huge market share in cities like new york, washington, san fran. so we think they have a lot more power and will be able to get those increases in rents going forward. >> so you would not look

something then like an annaly mortgage. the yield is huge. >> i'm looking at reits really away from the single homes and looking at multifamily and commercial, except for simon group. simon properties. >> let's hit today's top three trades. sales force down nearly 4% after unveiling a plan to buy exact target for $2.5 billion. stephanie, did you like this move? >> well, now they have made three big acquisitions recently at $3.5 billion, using a lot of cash. this acquisition was very expensive, at six times ev to sales. i like it for the long-term. i like what it gets them in the cloud. but i think it's a bit rich. and i think the stock, since the valuation is not cheap, i think it's going to kind of buy time. on the flip side, i like the ibn acquisition today because it actually continues to diversify them away from hardware into software, security, high-growing end market businesses, which is what the company has been -- that's what their plan has been

over the last several years, and they're executing on that plan. >> nikkei japanese equities gaining 2% after gaining nearly 4% on monday. so remember car, do you think this trade is still on? the most crowded trade on the planet. >> crowded trades make me very nervous. if you're look out over the next months or quarters that we are going to see a nikkei higher and the japanese yen lower. mr. abe is speaking tonight. he is going to be laying out the third part of his structural growth plan. longer term we have to see ex-cuing on the plan for japan to keep going. the big sell-off we got in japan the last couple of weeks of may, a lot of that appears to be rebalancing by the pension funds. since then we have seen japan say guys, maybe you don't need to rebalance quite so strictly. maybe we can be a little flexible in our portfolios that would mean less month-end selling if the nikkei goes up for the japanese funds, which would reduce the volatility in the market, i think people more comfortable holding on to the positions.

>> you also see nikkei higher, yen lower? >> yes. the breakout here through 11,500 broke a long-term downtrend from the 1990 peak. and if you extend the basing process you could actually argue about a 12-year base taking place. yes, it went up parabolically to 14,000. so it needs to digest those gains, pull back, whether it comes back to 13,000, a little bit more, the 38.2 fibonacci level right where it is, and then consolidate a bit and start up again. yes, we're very bullish on japan. >> let's move on and talk tesla here, holding investor meetings starting at 6:00 p.m. eastern time tonight. the stock is up about 2% after closing lower the past several trading session. i'm going guess, go out on a limb that you wouldn't like this and wouldn't touch wit a ten-foot pole. >> i wouldn't touch it with anybody else's ten-foot pole there is no should. i understand that a lot of good things have happened.

but it's mathematically impossible to come to a valuation like this. no way, don't toycht. it's toxic. that's short interest. you could get your doors blown off your electric car, long or short, either way. >> all right. coming up next, darling disney sparking a heated debate amongst our all star panel tonight. after the runup, do shares still look attractive, or should you stay clear? and why one commodity player says bullion has yet to bottom. a look at the gold slaughter and what is next. that's straight ahead on "fast." [ male announcer ] when gloria and her financial advisor made a retirement plan, they considered all her assets, even those held elsewhere, giving her the confidence to pursue all her goals. when you want a financial advisor who sees the whole picture, turn to us. wells fargo advisors.

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welcome back to this very special edition of "fast money." i want to take a check on a big mover, shares of general motors heading a new 52-week high in today's session after news that it is being added to the s&p 500. stephanie link, where do you go on this trade? >> i like gm. we own ford. i think the sar in may was impressive. it's a nice rebound from last month. everyone was concerned that we

were going to start to see a decline. good product cycle for both companies. >> karen, you're married. >> it was like a bad dream that whole bankruptcy, closing all the plants. it was a bad dream. they're trying to get the stock back. of course, you know, it won't ever be back. but lie tick story here. i agree with stephanie. we're married. >> okay. next right here, it is getting more expensive to enter the magic kingdom these days. disney raising ticket prices at disneyland. other price hikes have boosted the bottom line. but could they soon backfire? that takes us to our street fight. karen is a bull here stephanie the bear. >> as you know, i'm a value girl. but i've also learned that sometimes buying -- not sometimes, all the time buying the best is the way you want to go, not buying the cheapest. so while disney isn't cheap, it is very valuable. the collection of assets here cannot be replicated. and i know we talk about the theme parks.

this happens every time they raise ticket prices, which they have been doing forever. and the synergy with the movie tickets, you think they're for you, but they're for disney. they tell where you went and what rides and allow them to market to you. that's a sideshow to espn. this is the crown jewel of the company. and if you look at the valuation of disney, it's a little more expensive than some of the others in news corp. or viacom. but they each have their stories. should it be more expensive. you don't have a better collection of assets. bob iger has a year and a half to screw it up before he steps down. >> wrap it up. >> okay. >> go ahead, stef. >> it's a fabulous company, but it's trading above its five and ten-year historical averages. it's up 28.1% this year. the group is up 18. and yeah, i get that it probably should have had a better move given what they're doing. but that's a big discrepancy. plus, the s&p is up four. again, it's had a much higher

run. now, to me, priced for perfection. and earnings right now are starting to come down, because you're seeing higher costs in studio. the networks are seeing lower affiliate fees, and international is slowing. and parks, they have very tough comparisons year-over-year. i think you got to beat and raise in a big way. and i'm not sure they're in a position to do that. >> all right. so erin, who do you think made the more cogent argument? >> oh, you're in the hot seat. >> no pressure. >> all you, all you. >> i'm going with karen. >> with karen? okay. so you're going to go disney bull case. >> let's go to the charts. louise yamada, what do you see in the charts in terms of disney's direction? >> well, they're both right. >> what? no, come on, louise! they can't both be right. >> they're both right. disney has broken out of a ten-year base. that's the long-term structural bull market breakout. it's up 83% from the breakout. so it's due to pull back. it could ball back maybe to 60,

55. so both of them are right. we want to come back into it at a later date, but right now it's a little extended. >> both are right. that is a rare thing that you hear here on "fast money." we want to know who you thought won the street fight. so tweet us at cnbc fast money. bull for karen, bear for stephanie. we'll show you the results throughout the evening. gold selling off 1%, gold traders now turning their attention to friday's jobs report. they're looking for any clues of federal reserve bond tapering. qe tapering. renee haugerud is the founder and chief investment officer. it's a pleasure to have you here. thanks for coming in. >> congratulations, karen, on the new book. >> got to first ask you what your forecast, what your base case scenario is for fed tapering since that does seem to be driving a lot of the asset classes of the markets. >> actually, we think it's going to be kind of slow going, and we think the correction on the bond

market right now is probably going to pause for a while. and in fact tapering could take a little longer than people expect. >> so longer meaning how long? >> again, at least through the end of this year. we don't look for anything until next year. >> but if rates aren't rising as fast as maybe some in the market are fearing, lower rates, so lower opportunity costs for holding gold, it has no yield, does that imply that you think there is some upside, at least in the short-term on gold? >> no, actually we think there is more downside on gold. and really, it's the weightive positions and a correction. we still think the market is too long. supply and demand of supply and demand. look at cost production. it's well below where we are. and we think we should correct to 1200, maybe 1300, and then pause. but unless you get the dollar to really roll over, and that's the other thing, with rates kept low you might have the dollar turned down again too. if you have a massive sell-off in the dollar, then you could see gold, you know gain a little bit of its luster back.

>> i want to bring louise yamada into this conversation, because louise, does this marry up with what you're seeing in the charts of gold in terms of more downside and the markets are simply too long gold? >> it certainly is in a bear market, no question about it. it broke a two-year support when it went under 1539. and you had what a lot of people are looking at as a test of the low that could be a double bottom. but it's not a double bottom until it rise through the may peak, where the arrow is on the chart. and i think that there is the potential if it's having trouble at 1400, there is the potential that it rolls over again. and if it breaks the old low at 1347, then i can see that 1300, 1200 that renee is talking about. >> 13 or 1200. the technicals marry up. copper, a big mover. their expectations of tighter supplies out there. >> rights. >> and also the possibility of the grassburg mine being taken off line and diminishing the supply in the markets. what is your take on the copper

and some of the more industrial metals? >> the industrial metals we think are going through a short covering rally. one the chinese pmi was a little better than expected. we've had growth look like it's bottoming. and so, yes, it got a little oversold. we think we're going into a short covering rally, and we would use this to sell into. overall for the next year on the industrial side, on the infrastructure build, we think there is going to be less demand, and we are overall in a better supply. first time in five years that we're in surplus in copper, not deficiency. >> how about oil? oil has been pretty resilient relative to other commodities. >> right. >> do you see a reversion to it falling to the rest of the commodities? >> yes. >> and also, why do you think it has held up better in your opinion? >> you know, oil is a different animal than all the other commodities. and it is really a geopolitical index. so we think that the constitution of the geopolitical index has been too wide. much like the spread between wti that that constitution is going to fall away and a correct range for oil should be around 60 to

80. >> i get a question. first, i'm so happy to have you here. >> thank you. >> i've known you for a while and i'm thrilled you're here. i have a question for you. we have a lot in the retail space. cotton prices feed through to that. >> right. >> what do you see happening? there has been a big move in cotton this year? what do you see happening? >> that's interesting. on the softs, on the's, except for the grains which have to go through more downside, and we're starting to see the on an valuation basis, cotton, sugar, coffee starting to approach some buy levels. and we think the softs in the eggs, depending on the specific market has bottomed and may be coming back a little bit. so it's a little too early to tell. but, again oranges a value basis, we like the prices right here. and think we're moving out of that churning from a lower price. >> in terms of your top picks within the commodity space you do like the soft ags, the food. >> i like the food on the big picture three to five years. i think we're going through a major regime shift, major

repricing. and this year could be down for the rest of the year. if we do get huge crops, if we get the weather, now we have the crops. in we think that new crop corn, there isn't nearly the acreage that people expect. on soy beans, wheat, crop corn, we think we have to go through a little more of a downside. if we do, this is an opportunity for next three years. we don't have water priced in to grains and eggs. we have a growing emerging market. 60% of global gdp should come from brick and mist over the next five to ten years. this is coming from a much lower base on the income chain when you move up, and foods, eggs, and softs are undervalued on a big picture that doesn't mean that short-term we can't fall and near term supply and demand kind of points towards a little bit more of a correction. major opportunity over the long-term. >> okay, renee, thanks for coming by. appreciate it. renee haugerud of valtere.

where we would go, rebecca? >> we've been underweight materials. very cautious on energy. i'm really interested and a little concerned about the oil call here, because i keep thinking companies like saudi arabia or venezuela that need oil at a certain level to make sure they have a balanced budget and can afford social subsidies, are they going to fight you on that one? but for the moment, i agree. the bricks are doing okay. but they're just doing okay. you don't have enough demand to be the catalyst to push prices higher. >> do you think automatically that a deere and a caterpillar, those sorts of stocks will gain? >> i actually do. i like some of the chemical companies instead. so like a dupont. they have such a strong market share in this space. and it's product innovation, and they do help crop protection. so no matter what, good crops, bad crops and a good dividend yield, plus she is also focusing not only more on ag, but health care as well. a lot going on there. >> coming up next, one biotech company that has seen big gains

and a surge in business to kick off the year. the secret behind ova science' success. and tesla back in the green. what might ceo elon musk tell shareholders at the electric cars annual meeting. we'll look ahead right after the break. stay tuned. "fast money" means trading. everybody's got to bring their best information each and every night. the entire trading day is the preparation for that night. >> it's idea generation. it's all about giving you a framework for how to look at the market. the world has changed, our show as evolved. i am guy adami. i am "fast money." >> i am pete najarian. i am "fast money." >> are you "fast money"? go to the nbcuniversal store and order your fast money tee. run with the big dogs. into it, tdd#: 1-800-345-2550 hours can go by before i realize tdd#: 1-800-345-2550 that i haven't even looked away from my screen. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 that kind of focus... tdd#: 1-800-345-2550 that's what i have when i trade.

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apple seems to be forming a base, to me. i think apple goes to 500 bucks anyway. it just seems to me to be too cheap versus a lot of other stocks. >> that was jeffrey gundlach talking earlier today. let's go around the horn. apple to 500, it's simply too cheap. erin, what do you say? >> no, i think it could go to

500. look, there has air force basely been a hit there is huge competition with samsung. but we still like the stock long-term, even if it goes down there. this is a good place to get. in. >> speaking of samsung, we have breaking news on am. we want to go straight to jon fortt with the very latest. jon? >> yeah, melissa, the itc international trade commission issued a ruling that apple violated a samsung patent. this affects a few am products which it seems will no longer be sold in the u.s. let me mention the three front products first. the at&t version of the iphone 4, that's the one that is free on contract. the third generation ipad with wireless, and the second generation ipad with wireless. now important to note about these three products. with the new product cycle coming up in the next few months, many of these products were expected to be cycled out anyway. perhaps all of them cycled out. so interesting to see how apple might work these out of the channel, maybe a little sooner than expected.

this does not affect the higher end investigatoversions of the verizon version. a moral victory for samsung, certainly. apple got some samsung products banned here and overseas. and now samsung has the same on apple, melissa. >> all right. thank you very much, jon fortt, for that update. you see apple share there's trading lower by just about 9/10 of a percent. not too much. karen, do you think this is an overreaction, even though it's less than a percent move? >> maybe. i'd like to sort of understand a little bit better. but i have -- i do think that the whole story in the apple valuation is that they will be coming out with new products. and so if that is, you know, a little -- they have a little bit more downtime until they do, or a little less of a trough -- i mean more of a trough, i don't think it changes the evaluation a lot. >> by the way, i'm loving this show. and i'm loving this show, and congratulations, karen, on the book. >> oh, thank you, jon.

i appreciate that. >> jon, you're the first man on the show tonight. >> thanks for coming on. >> and the last, right? >> actually, no, one more to come. keep you waiting on that but jon, thanks for the update. stephanie link? >> i was going to mention ivago commentary mentioning how they're seeing the supply phone iphone 5 coming and coming in september. that's in line with expectations. but that's what is going to drive. the product cycles are going to drive. you have a user a day coming up starting on june 10th that can be a positive catalyst to get the stock higher. >> well, as you know have been waiting longer and longer to have children, which is decreasing their likelihood of conceiving naturally. a growth area which has taken the health care industry storm. michelle dipp from the university of oxford. a biotech company focused on developing new treatments for infertility. dr. dipp, it's a pleasure to have you with us. >> thank you, melissa.

i'm delighted to be here. >> karen has a book out that is out today. she talks about being a woman in the workplace. and part of a trade-off that some women make is putting off having a family. but if you take a look at the statistics, when you're 20, the likelihood of conceiving naturally is 86%. by the time you're 40, that goes all the way down to 36%. >> that's absolutely right. and what we're seeing now is a trend that more and more women are waiting to have children. and so at ovascience, what we're focused on is new fertility treatment options for women, especially those women who are waiting and perhaps need treatments like in vitro fertilization or ivf. and we know that the success of fertility treatments does in fact decline with age. >> a big part is increasing the quality of the eggs that are in fact harvested. and that's what your company is tackling? >> that's absolutely right. what we know is that fertility declines with age. what we've always thought is that women are born with a certain number of eggs that die over time, and it turns out that's actually not the case.

there are, in fact, these very immature eggs. they're in the outer lining of the ovary, and they can mature into fresh, young, healthy eggs. >> so let me ask you. for your product, is it generally not covered by insurance? these are elective. that must narrow the demographic down that you deal with. >> yes. it's a really great question, karen. so what is interesting is in the u.s., there are about 15 states that do offer some form of coverage for fertility treatments. but as you may know, most women are paying out of pocket for these treatments. and thaeps the demographic that we are focusing on. >> how much does this cost and what does it involve in terms of taking these -- these are the precursor egg cells? >> yes. >> that are the young, fresh egg cells? that's exactly right. >> how much does this cost? >> we haven't established the final price for our product which we plan to launch at the

end of next year. but what we think about is if we can save the woman the costs of an ivf cycle which on average is about $16,000, would she be willing to pay for that up front. the total market for ivf in the u.s. is about a $4 billion industry. and we know that it's growing. >> and last question here, do you need fda approval for this? what are the markers in time that we should be watching? >> the markers in time that you should be watching, for example, today we published a really important paper and a scientific journal. so what you'll see us publishing is new advances in the field of fertility and the scientific advances of our product. >> all right. dr. dipp, thanks for coming by. fascinating stuff here, dr. michelle dipp of ovasciences. and karen just quickly, if your book you talk openly about -- >> that is really an unfair division of labor. it's ridiculous what the woman goes through, and then the guy helps out a little at the end. >> like he goes push.

all right. coming up next, we're getting a leg up at the open with our top trades for tomorrow. still ahead, wall street veteran alexandra lebenthal sounds the alarm on munies. why she is taking a more cautious stance than ever before on the muni markets. she joins us live on set right after this. aw this is tragic man, investors just like you could lose tens of thousands of dollars on their 401(k) to hidden fees. thankfully e-trade has low cost investments and no hidden fees. but, you know, if you're still bent on blowing this fat stack of cash, there's a couple of ways you could do it. ♪ ♪ or just go to e-trade and save it. boom. ♪ [ engine revs ] ♪ [ male announcer ] just when you thought you had experienced performance, a new ride comes along and changes everything.

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welcome back to "fast money." i'm josh lipton. we were discussing at the top of the show the fed and when they will taper. earlier today kansas city fed president ester george reiter e reiterated her position as soon as the fed ends its policy of accommodation, the better. a quick clarification on one point here, though. on power lunch, we referenced the wrong speech by george. while her message was the same-sex marriages it was the wrong speech, and we apologize for any confusion. melissa, back to you. >> all right, josh lipton, thank you very much. now let's get to our top three trades for wednesday morning. tomorrow's adp report. economists are expecting a gain of 171,000 private sector jobs gain for the month of may. especially as anticipating the jobs report on friday. >> if we actually get 171, the last nine months where we've had new methodology for adp, add 42 to whatever adp prints, we're

going to be in that range. the market is going to be volatile around tomorrow. take a step back. the fed is not going to move quickly. i don't care what george says. i care what bernanke says. he is not moving quickly. rates are going up slowly. equities are going to be fine. do you agree with that? >> yeah. i'm not so much worried. i think tapering is premature. my big thing is we want to see at least 150 more for just gdp growth. even though unemployment has been dropping, we see a lot of people dropping out of the sector. and so we want to see those jobs created. so anything above 50 we feel safe. >> next right here, stanley black & decker holding an analyst meeting tomorrow. stephanie, what do you want to hear? >> only up 6% year to date. and the valuation is very attractive. so what is interesting about stanley black & decker, 51% of the sales are cdyi, a commercial do it yourself, housing, commercial construction. so we think they're going to say positive things there. but more interesting to me is 30% of their revenues are tied to europe, industrial as well as

security. and those have been kind of the lagging areas. and i think that if we can get any kind of clarity around that, and it sounds like from previous meetings with management that they might get a little bit more positive, i think the stock can work higher. it's very attractive at 12 times forward estimates. >> any read through you'll get from stanley black and decker to a home depot or lows? >> i feel better when their quarters were reported. i think that it should be pretty good. >> hove nanian reporting tomorrow. the street expecting a loss of 5 cents a share. where are you? >> hovnanian. >> they did come back from the absolute brink of disaster that balance sheet was a mess. however, that wouldn't be the way i would play the whole housing rebound. i still like realogy. it's come in the last few days, so south of 50 now we would be looking to buy, or buy calls. it is leveraged. so there is a lot of

turbocharged to housing there. >> let's move on to the next trade. muni bonds have been the go-to investment for those seeking safety and yield. the ten-year treasuries and yields at 14-month highs. can the trade continue to work with competition. here is what jeff gundlach said about yields earthier today. >> i do believe that the ten-year is going to head back down below 2% as we move through the summer into the fall. >> all right. let's welcome the queen of wall street, alexandra lebenthal, the ceo of lebenthal and company. let's say that is true. what happens in the muni bond market? >> well, obviously munis are obviously going to track treasuries there has been a sell-off over the last several weeks. people are getting nervous. is this the end of the bubble? is it bursting? i think people are very cautious right now. and i think that the main thing for individual investors to be focused on is how much money they have in mutual funds, because i think that once interest rates go up, that is where you're going to see the biggest pain. >> right. and we have seen actually an

outflow from muni bond funds in the past couple of weeks. >> yes. >> if you take a look, there is some interesting data that thompson/reuters have put together, saying supply was down in the month of may bay whopping 30%. but the bips on the yield for the ten-year benchmark muni went up 40 basis points. it's sort of an interesting supply was down and prices are down too. >> well, one of the reasons that supply was down is because so many of the deals that come out are refunding details. and they depend on interest rates being at a certain low rate to save that issue or money. so that's going to decrease the amount of issuance that comes out. i do think we're not going to see interest rates immediately go up. they'll be back and forth movements. so there is actually been a number of deals this week already, and you are going to see other issuance come out in the coming weeks and months. new york state has just put its calendar out. in the spring you kind of need to wait until a lot of states,

cities, towns go through their budget process before you actually see what they're going to be issuing. >> are you seeing any improvement in credit? we've had surprising news from california. didn't see that coming. does that put a floor under t bonds. >> california is stuff an interesting story. i was on this show multiple times over the last few years, and we were wringing our hands over california. was it going over the edge into the water, and now it's got a surplus. it's been a tremendous performer. the one issuer that i have major, major concerns with right now is puerto rico. it's got huge structural deficit. they're almost at a point where with as much debt as they have outstanding, downgrades that have come across the board on every issue, i don't know how they're going to dig themselves out of the hole any time soon. now, having said that and talked about california, who knows. we could be sitting here a couple years saying they're doing quite well.

but right now if i were an individual, i would absolutely stay away from it. overall, though we are definitely seeing better numbers coming out. so i would see munies as a credit overall doing well. >> all right. alexandra, thank you for your time. thanks for stopping by. always good to see you. alexandra lebenthal of lebenthal and company. let's head back to louise who has been taking a look at the mub chart. what do you see? >> the mub actually broke down under 110. you can see that. about a one-year support. and it could slip further towards 105. so i agree, you know, that over the short to intermediate firm, client should be moving shorter term. i think the most important thing is that this is representative of what the other bond charts look like tops. and bond cycles historically have run 22 to 37 years. we're in the 32nd year of our 1980 bull market for bonds. and i think that it's getting long in the tooth.

and we may have a consolidation here that continues to be possibly the final bottoming process before we see a reversal in rates. >> all right. coming up next, shares of dollar general taking it on the chin after setting slower sales growth. the options market turning to a big turnaround for the stock? and sallie krawcheck sat down with karen finerman. details and her secrets towards success and much more later on. . (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies." i've always kept my eye on her... but with so much health care noise,

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breaking news on apple. let's get back to jon fortt in silicon valley. jon? >> melissa, just got a statement from apple. it reads we're disappointed that the commission has overturn and earlier ruling and plan to appeal. today's decision has no impact on the availability of products in the united states. samsung has used an argument rejected by courts around the world. they admit it's against in europe and elsewhere. yet here they try to block the sale of products with patents they agree to license to anyone for a reasonable fee. the court did not require bond by apple, which is a bit unusual in this situation. and that ruling appears to go against the white house's new

stated position on standard essential patents and banning products based on those patent grounds. so all of that is interesting. and of course we expect to see at least something from apple in just a few days at wwdc. we'll see if this comes into play at all, melissa. >> jon fortt, thanks for that update. apple shares off the session lows, off the initial news of having certain products banned from import. shares of dollar general slashed after the discount retailer lowered sales growth. but option traders think the damage might be limited here. scott nations, what did you see? >> that's right, worst day in two years. option traders think that's the bottom, the bleeding is going to stop. expressing their point of view by selling some puts. they sold the august 46 puts. a bunch were initiated by sellers. it means their break even is 4525. that's where their going get the stock put to them if they end up buying the stock. and you know what? they're saying that's fine.

i'm willing to buy there it. if i don't end up buying it, then i get paid 75 cents for my trouble. >> scott nations, good see you. catch more "options action" every friday. coming up next, sallie krawcheck gives us the inscoop on everything from her purchase of 85 broads to the market and the secret of her success. back in two minutes. [ indistinct shouting ] ♪ [ 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. ♪

welcome back to "fast money." we are live at the nasdaq market site in new york city's time's square. in her new book released today, our own karen finerman lays out her rules for finding success both inside and outside of the workplace with a particular emphasis on how women can get ahead. last week karen also sat down with sallie krawcheck who recently purchased 85 broads of global women's network. her best trade and what success means to her. but first she answered the question on whether she considers herself a business person or a businesswoman. take a listen. >> in different groups, and wall street tends to be more male in its makeup, that i seem to approach issues in different ways with a different lens with

a different perspective. maybe that's because i'm a southerner. maybe it was because i came from a research analyst training. but i think will is no doubt that some part of that would be because i'm a woman. whether it was having more of a view into the business side responsibility, the merrill lynches, the smith barney's about the growth opportunity and women, which by the way wall street continues to term a niche market, and -- >> a niche market? >> a niche market. i said that's a heck of a niche that half of the population controlling 60% of the wealth, 60% of college students, more first-time home buyers, starting businesses, that's a heck of a big niche. but it actually goes to the mind-set of these organizations. and so, you know, i've noticed and as i've had the time to think about it and reflect upon it, it's clear women in business and everything that that stands for. the best trade i ever made was going from being an investment

banker with a few months spent as a stay-at-home, new stay-at-home mom, into being a research analyst. that move from investment banker, which great jobs for a lot of folks, really was not the right fit for me. and by changing a few things to the research analyst job, i was -- i loved it. i loved it, i loved it, and i was successful very quickly as a result. there were points in my life in which the definition of success was to be the number one research analyst covering wall street. and for another point in my life and the most recent point in any life as i've been in a career transition, my definition of success is can i steepen my learning curve very sharply, that having spent a few years in a role where i didn't have a particularly steep learning curve, the whole goal was can i get myself out to silicon valley, can i get myself

involved in social media, can i spend time in washington, d.c. and take a learning curve and steepen it up. so it changes, and it changes. and by the way, for us women who on average live longer than guys, you know, we better be redefining success along the way, because otherwise it's going to be a long sort of boring life. >> to see the full interview with sallie, log on to fastmoney.cnbc.com. and karen's book goes on sale today today. a lot of lessons we learned from all the women you talked to and of course from your book, which i pretty much read. >> well, thank you. sallie was great, though. for me to be able to sit down with her. so many women had great things to say what they did well and what worked. and they obviously being a woman in business is very different. she can play with the big boys for sure. we've seen that. >> oh, yeah. >> she can take it. and also what doesn't work. >> right. >> and how women can sort of get out of their own way. >> and speaking of playing with the big boys, every woman on this desk tonight playing with the big boys. good job tonight, ladies.

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cycle. >> stephanie link? >> rebecca patterson? >> look for europe catch-up trade this summer. >> erin gibbs? >> pub, sell. >> karen finerman? >> realogy calls. >> thank you, ladies. so great to have you with us. great for you guys with us. 5:00 p.m. for more fast. "mad money" with jim cramer starts now. >> my mission is simple. to make you money. i'm here to level the playing field for all investors. there's always a bull market somewhere. and i promise to help you find it. "mad money" starts now. hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you some money. my job is not just to entertain you but educate you so call me at 1-800-743-cnbc. it's a two-camped market. despite these two really nice