he says the u.s. economy is on firmer footing, and he is expecting better trading revenue for the company in the second quarter, in large part because they had a weak second quarter last year. back to you. >> thank you very much. there you see the stock up by 12 cents at this hour. that will do it for this edition of "power lunch." thanks, everybody, for watching. >> we'll see you tomorrow. have a great afternoon. "street signs" begins right now. >> it is a story sending shock waves through the market. big-money investors apparently getting faster access to market-moving data. are mom and pop getting worked over yet again? amazon.com may be a great company but famed investor bob olstein says it's not a great stock. he is here. you're going to find out why he thinks that run is done. plus, jim cramer and herb greenberg engage in a celebrity death match over two high valuation stocks, and live this hour, an exclusive interview with david and jackie segal.

mandy, they are better known as the couple from the documentary "the queen of versailles" and you've got to hear what they have to say in our live interview. >> cannot wait. meantime, let's look at those markets because we could see the first three-day losing streak of 2013 for the dow today which, by the way, was up 119 points earlier on in the session. of course, we have lost all that and then some. it's been a really wide range of over 200 points today for the dow, but let me show you another stat, and this is actually a currency stat of the day. the dollar/yen currently just sitting 0.2% to the downside, but here's the thing. below 96, this is really bad for the nikkei. a stronger yen is part of the reason why the nikkei is now struggling after, of course, having an incredible run earlier on in the year. let's get straight to the trading floors. bob pisani at the nyc and rick santelli in chicago. bob, i want to talk about increased volatility and big losses getting racked up, particularly in emerging markets and storks and debt.

what does that mean for us? >> a lot of people trying to diversify their assets using etfs overseas are getting hurt because a lot of people are heading for the exits. you're right about the volatility, dow in a 200-point range. this is the norm. ever since may 22nd, mr. bernanke gave his testimony in congress, we've had a jump in volatility. look at this, a simple way to look at volatility, but up until may 21st the dow swung at a high to low 109 point. that was an average. since may 22nd. 184 points and today is about an average day. just a more volatile situation, and it's particularly volatile in emerging markets. two questions i get every day. what can i do with my bond funds and what do i do with my emerging market etfs because there's a lot out there. the eem, a big one, we're down 10% since about may 22 nd i mean, that's a shockingly big decline, and the volume has been huge in the last two weeks, and the same with international bond funds. emerging bond etfs were very, very high in the second half of last year.

here's the big one, and this is why. that's down about 11% in the last couple of weeks, so, unfortunately, a lot of people are heading for the door, and the question is this a better time to buy right now or should you simply stay out? a very tough call and it depends on how you feel about largely the global markets right now. finally, i just want to point out in the isn't this a great country story? take a look at gigamon, went public, this is a data analysis company, analyzes data for companies. the important thing is the average insider owns this stock and this company at 98 cents, mandy, and i talked to a whole bunch of them who were down here. do the math on this. suppose you had 1 million shares? a $26 profit. how well do you think you're looking and feeling right now. >> feeling pretty good. >> people crying down here so happy i saw them this morning on the ipo. isn't this a great country? >> what a great country. >> i know you've got the pricing of the big ipo of the week tonight cody as well. >> cody is pricing tonight, and

there are other ones coming out there. we've had a chance ipo that priced last week, that is doing very, very well, so we're getting a little bit of interest. i'd be intrigued to see cody, big fragrance cosmetics company. >> and we'll talking about alta in that space later on. let me throw it over to rick santelli. we were talking about emerging market bobbed funds a moment ago. what about home grown bonds and treasuries? how are they doing today? >> you know what, just imagine the treasuries, the dollar/yen, the euro/yen, the nikkei futures, all arm and arm marching down the street because as you can see on this chart with ten-year interest rates and dollar/yen we're trading very similar patterns here and it makes sense, but to add in one issue with emerging markets, if you look at any of the central bankers from some of the big emerging markets, like mexico, what you'll find is that the liquidity splashing up on their

shores from the ecb, the bank of japan and the u.s. federal reserve, that is their problem. it splashes up and it splashes back, so to think that there's something wrong with the emerging markets i think we're looking at the wrong an tag niflt. >> oh, very interesting. thank you very much. rick. >> thank you. your next guest with a very different take on the markets than movement he says forget about the overall markets. you've got to look at individual stocks. joining us now, the man himself, bob olstein, chairman and ceo of olstein capital markets. all right, bob, we'll try to use a market allegory using two stocks and i know you love free cash flow analysis. this is macy's folks, and if you're listening at home this is what we did. the stock price of macy's up the last few years and the free cash flow of macy's, the green line, up the last few years. now, let's take a look at amazon.com. i'll say it in an ominous voice. the stock price up the last few

years. the free cash flow, egh, not really, pretty much flat to maybe mildly higher, but a big divergence between the two. i know you don't like amazon, but can we read anything more about the overall market from those charts? >> there's been a decoupling of free cash flow and valuation. the analysts are in the moment again. this is the latest thing. what's going to happen in the latest quarter did, they beat it by a penny or lose it by a pen? we recommended or bought macy's at 10 bucks a share in 2009 because it was generating $1.40 in free cash flow at the olstein funds. we look at that, the stock is 10 bucks, and now it's 48, and here's amazon, 6 billion in sales back in 2003. 80 billion in sales forecast. no free cash flow. if each person doesn't trade it to the next guy and you own the stock privately, you have to pay $125 billion to earn nothing. you pay 22 billion, and you get 2.2 billion a year from macy's. what are you going to do if

there's no public market? >> i know you don't like amazon. not short it. >> it's not that i don't like it. >> using that as a metaphor for maybe what's wrong with the stocks. >> we passed on it. if amazon was 50 bucks, maybe i would love it. it's price, price, price at the olstein funds. you did lose ent on "squawk box" back in 1998 and the stock doubled after that. you know where it went? they weren't producing any cash flow. if amazon doesn't produce cash flow it's going way down, and it's a retailer just like macy's, even if it produces $8 a share, is it worth 280. bezos is a good ceo, but he doesn't produce any cash flow. >> is free cash flow in your mind the single most important metric that our audience could look at? >> i'm going to ask you. when you sit here, what's the most important thing? is it air? >> food, generally with me. >> it would be air. >> it would be air, and free cash flow is the air of

corporations. like lennar, lennar has never had any increasing book value in the last ten years. the company produces no free cash flow and it goes higher and higher. always has to go into inventory. again, way overpriced. >> give us and our views a few good company examples of companies that fit that build. >> you have m.you're going to yell at me. great free cash flow. >> it's had a great run the last year. >> we bought it at 19. >> really made a big comeback. >> still very cheap. there's dupont. everybody is killing dupont. they got a 3.5% dividend yield. a company that's capable of producing 4.50, 5 bucks in free cash flow and analysts are killing it because it's a chemical company. 60% of their earnings now come from farming and come from food, and -- >> they sold their automotive and chemical business. >> and they will probably sell their ti, too, whatever that chemical, is and basically the analysts are in the moment. everybody is electronic trading. they are taking their eye off the football. there's going to be a lot of

fumbles going forward. >> i noticed the all cap value fund and the strategic fund. harman international was in both of your last recent biggest holdings. why? >> we bought that stock at $29 a share. great new ceo. they are at the forefront of electronics and automobiles. they are the leader. they have cash, no debt. they are going to generate 4 to 5 bucks of free cash float next two to three years. again, pay attention to valuation. not to markets. markets are going to trip you up because that's the single most important factor to look at, but nobody can predict it. so let's look at what we can predict which is free cash flow. >> got it. >> bob, as always, great to have you on our show today. >> thank you. on deck, we'll dig deeper to eamon javers' amazing story about thompson reuters reportedly giving elite clients a head start on critical economic data. is it more proof that the market is rigged against you, the little guy, and jim cramer is outraged at that story. he's also outraged at me apparently. he's ready to rail.

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[ roars ] ♪ [ roars ] ♪ [ roars ] ♪ [ roars ] ♪ [ male announcer ] universal studios summer of survival. ♪ it is the outrage headline of the day. elite traders are getting an edge to some market-moving data every single month. it's not against the law and only costs a fee for that early access. our very even eamon javers has been reporting very closely on that story. you know what?

it's actually got a lot of eyebrows raised. in fact, there's some people who are outraged about this, eamon. >> yeah, that's right, mandy. let me walk you through the store that i broke on our air earlier today. it's based on our contract that we obtained by thompson reuters and the university of michigan to put out the consumer confidence information, and in that contract thompson reuters stipulates that they are going to put it out in three tiers, so take a look here at this graphic which shows you the three tiers they are putting out information. first is the public access to data. that goes out at 10:00 in the morning, but at 9:55, five minutes earlier, thompson reuters provides elite customers with access to that data, but even earlier than that, at 9:54.58, two seconds earlier thompson reuters provides the data to the elite cutters who can trade on it. here's the real world impact. take a look at this chart. this chart is trading in the spy on may 17th, and what you see is on the right-hand side the red

line, that's 9:55, and what you see here is an explosion of trading at just about exactly 9:54.58. you see the sharp market move up. that gives you a sense that traders are immediately reacting when this early data is going out two seconds before the 9:55 crowd gets it, and, of course, 5:02 before the 10:00 crowd gets it. here's what the thompson reuters told us about it and said details of the tiered release of this data are provided openly to thompson reuters customers and the wider public and anyone who wants to trade on this data can pay for the service and it is an expensive service. the contract stipulates that thompson reuters pays the university of michigan $1 million a year for exclusive access to that data. >> eamon javers, thank you very much. stick around, too, because we'll bring in cnbc contributor jerry bernstein and jim cramer as well. jim, i want to say this, worked at bloomberg for ten years, a competitor of thompson reuters and have done this for 17 years. i'm not the litmus test. never heard about this.

thompson reuters acting like, yeah, it's out there. everybody knows that's the case. what's your reaction? >> you've got to be kidding me. you really think you can get away with. this one of the things that eamon said it's not illegal. you know what, having done a lot of work with prosecution, you know what? what's legal or illegal is up po to the prosecutor not up to thompson reuters, not up to us. the prosecutor doesn't like this, he brings the case. prosecutor bring that case. >> should it be made illegal, jared bernstein? >> i don't think it is illegal, and i doubt it should be made illegal, but i think it's wrong. i think it's unfair, and i think eamon is doing some dogged and very important intrepid work here. my litmus test was about what you guys just did. i was about to ask brian and then jim cramer, have you ever heard about this, because i haven't, and i'd be darned surprise federal anybody else has, so there's something very wrong here, this kind of tiered release business. it's not at all what folks expect. >> and if they are doing, it surely there must be others who are doing it as well.

>> i'll tell you, if i were thompson reuters, all the people getting the delayed, you know, the delayed kind of like if you watch a ball game after, send them a note and says listen you're getting third rate information, we love you, but you know what? you're third rate and you're small time and just like the goldman sachs clients that got the information earlier because they are big-time, oh, that was illegal. i'm sorry. i shouldn't have used that analogy. >> my guess would be that you won't find this sort of thing happening with government releases, and there are some of the bigger ones, gdp and employment, for example. however, if you look at some of eamon's work from earlier in the week, he's finding not these kinds of contracted leaks. in fact, not leaks at all, but some electronic sort of hiccups where it looks like some early trades might be happening there as well. >> right. eamon, do you get that impression? jim has been doing this for a long, long time. jarred has been around the markets, mandy has, i've been, you've been. none of us has ever heard about

this. >> right. >> do you get the impression that thompson righters is saying, hey, we're not making this a secret. if you pay us money, are they trying to make it no big deal? >> i can tell you what thompson reuters told us is they do disclose the information, gave us a link to the website on their web page and you can seat link where they tout the advantage of this. they actually have a stock chart from one particular advantage where stocks declined on the consumer confidence news and point with a little arrow and said here ear where our clients learned this information and the rest of the clients learned this information so they are putting this information out there and say they are disclosing it, but the question is does everybody in the market really know that and do the press releases they put out, the press releases that the university of michigan puts out contain a disclaimer saying this information went out earlier to tradeers? >> that's the point. that's where jim krairm cramer's point, not about legality but fair play. at the very top it should say this is not fresh information.

>> right. >> just to prove that this is raising eyebrows, raised two eyebrows of rick santelli. you've been listening into the conversation, and i believe you want to join in. >> first of all, eamon, great job, but here's my issue. everybody at the desk raise their hand if they understand that for years subscribers could pay extra money and get it before the press gets it, do we all know that sitting there? this has been going on for years. now hft nobody likes it and the extra two seconds, eamon hats off to you, but it's an hft story because for years, for years you could pay a little dough and get it ten minutes early, so my issue is there was no outrage for years and years and years. what's changed really? >> i mean, rightly or wrongly -- >> it used to be that we changed that, arthur levitt decided there should be a level playing field. during the '90s cfo would talk

to you, if you wanted the information you got it and there was a quite period, but before that we used to have it so that rich people got it routinely. >> what could you mean rich people? what's the rich people, jim, come on. i hate the secret little underlying themes. >> me, okay? >> you're not poor. >> i was a hedge fund manager. >> you got information it was legal. they weren't going to speak to little people. they didn't have time to you. they spoke to big shareholders. >> university of michigan has had a paid privilege for a long time, that's all i'm saying. >> i just told you what reg-fd meant, that arthur levitt thought it wrong that the mutual funds got the information early, he did. >> there's no question that public policy in this area through the s.e.c. was designed to level the playing field for precisely the reasons jim cramer said. rick may be right that the playing field isn't level, but the reason eyebrows are raising is because eamon's story is teaching many of us something new. you may have known about the

tiered structure on the consumer confidence release. >> everybody who trades has known seriously. >> get over here, come over here, wait a minute, wait a minute. hold on. jerry, you've been trading for years and years and years. is it any surprise that subscription guys have gotten university of michigan early? you talk about it every month, right? >> every month. >> i thought we got it first when you break it, no? when you break it -- >> don't you break it first? >> rick, jim -- >> no, we never break it first. we've always known that! >> i'm running out of the bull ring. going to round up the doggies and i want to ask this question. jarred, to you. >> okay. >> let's say it's perfectly legal and it's perfectly known. let's say rick and his traders knew about it anyway, okay, fine. my point, and i think jim you might agree with you, jarred to you and then jim. it doesn't matter if it's legal and somewhere hidden on the thompson reuters website and

accessible to all. stock ownership in this country is at decades low, after the wall street collapse and the housing collapse, after pets.com was at $10 a share, the american public has no reason to have faith in the american stock market and this is another reason for them to have no faith in the equity market because they believe the system is rigged against them. i think that's a question. >> that is exactly right, and that's why i said a minute ago regardless of whether santelli is right, i think he's overstating his case, there should be a disclaimer at to. otherwise this -- i guarantee you a lot of people did not know about this tiered structure, and they -- they even call it the elite early access or something like that. i mean, it feeds in exactly to what brian is talking about. >> what do we need to do to get the retail investor back and confident to get in the stock market feeling it's a level playing field? >> i'll tell you how little i knew, when we break away to give it to rick to disclose the number, i thought we were doing it instantaneously, i led you to believe that we were giving it

first, righters is giving it first. i did it wrong. i thought we gave our viewers the first information. i guess we didn't. >> this is interesting, too. joe cellucci, well known to our audience, doing great work on high frequency trading, advocates against it for a long, long time. he just tweeted me, and thank you, it's a very smart tweet. his whole point is this. it doesn't matter if you have access to it. let's say -- let's say that brian sullivan and mandy drury and jim cramer do have access to this. if we can't afford it and if we don't have the machinery to process it within nanoseconds, it doesn't matter. a ferrari is available to all if you have the money. >> if you can afford it. >> and brian to that point, disclosure. eamon broke the story. i believe it is a story, by the way. anybody who thinks it wasn't a story, that's fine. that's certainly your -- you're entitled to think it's not a story. i came out here and was outraged

when i heard it because i thought we got it all the same time. if there was disclosure, maybe that doesn't cure it. maybe we need bigger disclosure. similarly, by the way, if mary jo white, the head of the s.e.c., if she were to call us right now and say i don't think that's right, maybe it is, but i don't think it's right, it would end. if the s.e.c. chairman called you, brian, and said i'm watching the show. this doesn't seem right. this should end. that's the end because she runs the s.e.c. >> can i make a comment? can i make a comment about that. >> absolutely. >> that tweet that you got, that's an indictment of high frequency trading because it's true that most people can't do that because they don't have the apparatus. that's not where i am and i'm very sensitive to these issues of elitism in markets. however, my issue with htf is that nothing that we're talking about so far in this segment sounds anything like the efficient, productive, capital allocation financial market that i learned about when i was growing up. this is all flash trading to

arbitrage a nanosecond difference, and i don't think it helps underlying economic growth or productivity. >> there is one silver lining here, and this is another factoid that our friend joe gave us as well and that's a fact that hft according to the stat seems to be in retreat. he said it used to be up to two-thirds of stock trades and now it's about half hft trades, might get lower than that, some of the stats up there as well, which is kind of interesting. >> jarred, can i ask you a question, one question. i totally agree with your statement you just made. where are the good ole days when the market had its price discovery? have you looked at what the fed's been doing, kwooquantitat easing, 1, 2, twist and 3. that's your example. hft, i don't like it. i wish they would get rid of it, but they are not going to. you and i both know that. >> look, you raise a good point. certainly the fed is deep into

the market in a way that in normal times i would agree you they shouldn't be. these are -- these are not normal times. >> so you have an exception to that one because you agree with the fed. >> because of the recession. >> i want to give the last word to the man who owns this story, eamon. >> yeah, mandy. just to brian's point about the ferrari. we asked thompson reuters how much do you actually charge for different tiers of information and they declined to give us that information. presumably it costs more than the $1 million. >> cost more than a ferrari? >> i don't know, i'm not in the ferrari market. >> i just searched under michigan thinking that it might come up as we can give you access to the university of michigan. i haven't seen it yet. i'll continue to search. it's not easy to find. it's on their website, jim. >> easy now because eamon just broke the story and it is a story. i didn't know that. i feel -- i just think it was wrong, but you know what, if the government thinks it's right and they don't bring a case and they don't say anything, then it's right.

someone from the government has to be as outraged as we are here. >> don't feel bad. it's an hft story. the new news, and that's why eamon has done a terrific job and i don't mean to dismiss that. the two seconds in the hft i think is really the story, and i think that at some point you talked about the s.e.c. the real issue here isn't the subscribers that have gotten it ten minutes for years for not that much money. the new store set high-powered computer trading. >> if the government thinks it's fine, rick, there's nothing you can do. it's not going away. the government has spoken. there's nothing wrong with it, they think. >> more stories like the one eamon just put out and maybe we'll start to see a little bit of action from the government. thank you to jarred, to jim, to eamon for breaking the story and also thank you also, rick santelli, for jumping in and joining the party. >> and joe with the great tweet. all the twitter followers, everybody out there in farmland, thank you very much for participating. coming up next, herb is a

little bit bitter. uncle herb is very bitter. >> later on, booze and betting. casino stocks and why increasingly the main ingredient in your beer is not hops. it's taxes. that's coming up. sier to try filters and strategies... to get a list of equity options... evaluate them with our p&l calculator... and execute faster with our more intuitive trade ticket. i'm greg stevens, and i helped create fidelity's options platform. it's one more innovative reason serious investors are choosing fidelity. now get 200 free trades when you open an account. so you can capture your receipts, ink for all business purchases. and manage them online with jot, the latest app from ink. so you can spend less time doing paperwork.

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let's get a real quick check on what's happening in the metals market for you. gold is moving to the upside after hitting a throw-week low. yesterday you've also got silver moving higher along with copper and palladium. the dollar, of course, a bit weaker today, particularly against the japanese yen and the euro. >> all right. herb greenberg is here. he's got a veritable buffet of what we'll call bitter -- you're not bitter. you just dig into stuff. a natural born skeptic and that's what we love about you. >> and some people don't love about me, but i do point out one of the companies -- >> bring your family into this. >> one of the companies i talked about earlier today is alta. this stock is one of two or three on my screen that's just holding in there, even as the market has been going a little south, at least some of the stocks on my screen have. look, it's been a messy earnings quarter but that's not what analysts care about.

they beat that earnings beat lower than expected guidance, not that they tell you that and second-quarter guidance is lower than expected and we had bob olstein talking earlier about free cash flow. no free cash flow. herbalife, a company i talked about a lot. a company out late yesterday with a nielsen study showing that 3.3% of u.s. adults have purchased herbalife products in the past three months. now, this actually corroborates data from a prior leiberman research study. of course, boast these studies were commissioned by herbalife. in the end, what i believe is all that really matters is that an ftc economic analysis would trump both of these. >> and first solar? >> first solar, we were told -- >> we've run out of time. >> out of time. >> out of time. >> out of time. >> herb greenberg. >> thank you, uncle herb. >> not that bitter, dash of lemon and everything is fine. >> next up, the rubber hit the road edition of street talk and a new indicator. we'll call it the cheese steak and rare steak index. >> and they are back. we'll be talking to the

outrageous billionaire couple who tried to build the biggest home in america. well, he stopped paying the mortgage for a number of months so how in the world do they get the house back? we're going to ask them. [ kitt ] you know what's impressive? a talking car. but i'll tell you what impresses me. a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪

it is street talk time. take a look at what's happening with a i played materials. >> it's a big call by citigroup, mandy, upgrading it from a neutral to a buy but adding it to their top picks live list. the analysts recently met with semiconductor companies and said increased competition between intel and armed holdings should play right into their strengths. nearing the 2,000 highs. >> apollo global management also getting an upgrade. >> not helping the stock though. kind of the. a big called by goekz. the target is up 30 bucks. cite accelerated fee earnings. valuation is well. 6.50 upside. usually a call from goldman sachs is going to move a stock. not today. >> you would think so. kind of an under-the-radar name,

riverb riverbed. >> solid fundamentals, a new product coming out called granite, and they think this could make the company a more strategic company in the networking business. 6 bucks on the upside, but it was a $20 stock years ago. another one of those names. >> global m & a story, cooper tire and rubber, up over 40%, but it is also kind of a sad story at the same time, right, brian? >> a 100-year-old company. 1914, founded in finley ohio, changed their name to cooper tire back in 1946. i understand it's global markets. indian company buying out this company, 35 bucks, 40% premium. i'm sure management will get very rich. the indian market is getting stronger. i hope they do the right thing. i know i'm being jingoistic. arnold palmer should be the

spokesman for it. i hope the jobs stay here. >> hope they keep their jobs. >> good grief. >> looking for some meaty profits, feast on the high-end restaurant chains. really been exploding this year. outperforming the broader market by a long shot. courtney reagan at the piper jaffrey consumer confidence in new york, and what exactly have you sunk your teeth into, court? >> reporter: yeah, you know, it's very interesting, mandy. among more traditional apparel retailers presenting here, the ceos of cheesecake factory and ruth's hospitality group are also speaking to investors, and there's a lot of interest. we all know that dining out is one of the first discretionary spending categories that gets cut when conditions get a little tough, and we've seen it in the numbers. traffic fell 3.3% over the last six years, but npd actually predicts that this restaurant traffic is going to pick up over the next decade, up over 4%, actually gaining diners out. particularly that supper diner. now npd also suggests that after time consumers start to see

discounted pricing as the new normal, restaurant names that don't do this could be at an advantage, and if you couple that with an improving stock market, a better housing market and better unemployment for those at the high end, names like cheese kaik factory, ruth hospitality and del fresco's do stand to see gains. 2013, cheesecake factory up 26% and del frisco up 27% and ruth's hospitality shares up 64%, but there are indications that the positive trends could continue. the national restaurant association's restaurant performance index hit a ten-month high in april and the current index, this one measures a variety of things from same-store sales to traffic to labor and cap -- x hit levels that signify expansion for the first time in eight months. this is the piper jaffrey conference, and analyst nicole miller regan continues to like

cheesecake factory. one thing she notes is the capital that the company returns to shareholders throughout the year. that's a reason why you should hold cheesecake factory if you're looking for things like capital and growth and who isn't? mandy and brian. >> well said. as always, courtney, thank you very much. let's bring in bob darington from north coast research. you just heard what courtney said. you've got a neutral rating on cheesecake factory and darden and while not the highest of high-end chains, why aren't you more positive on these two? >> well, brian, what i would say is you look at the valuation for these names. investigators have mig railed towards the chains with the better operating trends and those you've just mentioned a couple minutes ago clearly are within that group and the valuations have expanded. the earnings numbers have been very strong. if in fact they can continue to beat expectations, there's a good likelihood that the stocks could continue to work, but that being said, remember, these stocks are up, you know, on average, well over 30% as a

group, and while they will still appreciate, the appreciation won't be nearly strong enough as i believe as we go forward. >> ruth, for example, up by 65% year to date. which of those stocks though in this sector do you think are still looking goodperspective. >> yeah, what i would say is one of the names that we continue to like is a company that -- brinker international which operates magiciano's which is their higher end brand and their operating trends have been very strong. that's one of the names we think is especially well situated and could be up in the vicinity of 15% to 20% anyway over the next 12 months. >> also the parent company of chili's, i believe on the middle end. >> right. >> any other name besides brinker -- the ticker there is eat, by the way, that you like. what dine equity, the old applebee's/ihopkinton september. >> i'm more cautious there and -- >> ihop wants to serve dinner.

>> they do, and they want to serve breakfast. unfortunately, not enough customers coming into the restaurants in my view to bid up the sales trends as strong as some of the other concepts we like, brands like red robin and panera bread, both leans towards a more affluent consumer. we think there's a lot of upside appreciation in both of those names. >> got to leave it there, bob. thanks so much for joining us and thanks to courtney earlier. >> thank you. >> attention, all high rollersance and who isn't a high roller on this channel, right? because up next we'll look at a big bet on the casino stocks. >> plus, check out this gamble, the biggest private home in the united states. we're going to take you inside, and we're going to speak exclusively with the owners. that's all coming up ahead, but, first, let's get out to bill griffith with what's coming up on the "closing bell." hi, bill? another crazy day, mandy. stock prices lower and treasury prices also. we'll look at whether the investors are finally getting into that rotation out of bonds into stocks. we have one trader who says it's

already under way and dow component hewlett-packard is up 76% this year. it's been the best performer this year, but somebody here says this rally is just getting started. and in the wake of the nsa scandal, we have the head of one company that's developed a privacy app to prevent spying on your phone calls and text messages. kelly evans is with me today. we hope you can join us at the top of the hour for the "closing bell." meantime, you've got more "street signs" coming your way in just a moment. [ 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.

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this story under tell us something we don't know. which state mays the most at the mechanic. according to a story by carsmd, where else, new jersey paid the most. an average of 393 bucks. who pays the least? vermont. that's because most people ride carriages there. others on the most expensive list, i know now our few viewers in mail will send us hate mail. d.c., north carolina and maryland, personally spent over $5,000 for repairs. wheel suspensions, tires, the suspension in my car completely

blew out. herb, front burning in his bugatti just blew out, and those cars have expensive repairs. >> certainly do. i got keyed on my rent a car as well so i'll be putting it in the mechanic shop as well. >> you ticked me off. that's what you get. >> nevertic off brian sullivan and his keys. meantime, vegas always a pretty risky bet, right? but that does not mean that you can't make money on casinos. let's get to josh limiton. you've been doing a little research? >> that's right. >> on casinos for us. >> two ways, guys, to roll the dice in the gaming sector. first here at home. the u.s. gaming sector. remember, got hit especially hard by the recession. casino operators had to make up for a lack of revenue by improving costs and the regional operator penn national did that especially well, says morgan stanley, increasing square footage per employee in its 22 casinos in the u.s. and canada, and on the vegas strip, mgm up 25% year to date. last month the company reporting

its best first quarter since the beginning of the recession five years ago and since they are in the hospitality gain they are poised to benefit when hospitality returns to sin city. >> you're getting pretty solid growth there. it's definitely growth in excess of gdp. >> now consider casinos with large international exposure, and in contrast with the saturated gaming space here in the u.s. much less competition in china means stronger growth prospects for the companies there. las vegas sands, for example, gets about 85% of revenues from asia, and that stock is up over 20% so far this year. wynn has had short-term market cherish use, but with an anticipated casino opening in macao in 20 about 13, a longer play and for a pure asia play, mgm china on the hong kong stock exchange.

trades at 13 times next year's earnings, with earnings expected to grow 20% over the next five years. guys? >> that's big numbers. >> big numbers. >> big numbers. >> thank you very much, josh lipton. >> are you a gambler, josh? >> i enjoy gambling. i'm terrible at it. >> like mitch hedberg said are you addicted to gambling or sitting in a semi-circle? >> got to give it up, buddy, got to give it up. >> 90,000 square feet, 23 bathrooms, 13 bedrooms, 10 kitchens, 3 pools and that's just mandy's summer home. actually, this is one of the biggest private homes of the country. the owners who you know well join us next. >> time now for today's return on retirement. capitol hill is king of the hill when it comes to retirement plans. according to the congressional research service, the federal employees retirement system pays more than 200 former congressmen nearly $40,000 a year after an average of just 16 years of

service. that's about what the average private sector worker makes in retirement after a lifetime of work says the employees benefit research institute. wait until you hear the spread between the contribution differences between government and private pension next.

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back now with today's "return on retirement. "pretty shocking findings. out of those who shared the info, nearly 6 in 10 say the value of all of their vavings and investments, not including home values and pension plans, is less than $25,000. and that includes 28% who have less than $1,000 saved. what's holding americans from saving more? debt. more than half claim to have a problem with their debt levels. check out "closing bell" told at 3:00 p.m. eastern for retirement portfolio advice for all ages, and retirement.cnbc.com for more tips on how to prepare for your golden years. welcome back to "street signs." live nation entertainment resumed trading. it was halted earlier. live nation entertainment prevailing in a cts arbitration

proceeding against a germany-based firm. the arbitrator ruled that live nation validly terminated its ticketing software license agreement with cts in june 2010. that news helping the stock move higher, better than 7%. >> yeah, look at that spike go. thank you very much for that, seema. billionaires david and jackie segal had a dream. to build the biggest house in the country. but that collapsed with the housing market. today, the dream is once again becoming a reality. robert frank has been following this story, and you join us now. robert? >> thank you. well, a rebound it definitely is. three years ago, david segal's company was laying off workers and the dream house, called versailles, went up for sale and into foreclosure. today, his company, westgate reports, is reporting record profits and hiring back a thousand workers. construction has started once again on versailles, the 90,000-square-foot house. here with one of the most

dramatic comeback stories in business, david and jackie. thank you so much for joining us today. >> hi, robert. >> thank you. >> let's start out. you guys have been through such a roller coaster these past few years, and so has the country. how do you feel today about building the largest home in america, and will you live there, or could this be sold? >> i'm excited about it. i definitely plan to live there. of course, if somebody comes along and offers me a lot of money, i might change my mind. >> whaegs a lot? 100 million? 70 million? >> well, 100 million now because we're going to be finished in two years. >> or i could live there and you sell your half, right? >> and, david, you know, one of the big changes since this documentary was made, of course, is the incredible comeback for your business. you're hiring back a thousand workers. record profits. what are you doing differently today? what have you learned from the past few years, about how to run a business and maybe even how to run your life?

>> well, in 2008, when lehman went under, we were fat, dumb, happy. today, we're lean and mean, operating with our own money. we're not borrowing like we used to. we're growing at a better pace, and business is great. we're qualifying the customers better. we're doing a lot of things a lot better than we did before. >> right. jackie, when i last saw you a couple of years ago, your life had changed. the planes were gone. a lot of your staff was gone. are you getting some of that back? and how will you spend your time in the next two, three years? >> we still have the planes, we just mostly charter them out. >> right. >> but it was tough going from this many housekeepers to having the nannies split the work between taking care of the children and taking care of them well and keeping an eye on them and to clean the house, too. >> right.

and, david, one last question. during the election, you said you may have to lay off workers if obama is elected. what's your employment outlook in the next few years, and has that election really changed anything? >> the election hasn't changed anything. we never laid off anybody. we've added a thousand people recently. we're growing at a steady pace. last year was the best year in my company's history. this year, we're up 50% over last year. so that says a lot. we're on a great pace. we're not borrowing money. we're paying off our debt, and we're very solid right now. >> great. guys, thank you so much for joining us today. again, appreciate it. >> thank you very much, robert. we have more of david and jackie's story tonight with the cnbc premier of the critically acclaimed documentary "queen of versailles." airs at 9:00 eastern and psk tonight on cnbc prime.

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otherworldly things. but there are some things i've never seen before. this ge jet engine can understand 5,000 data samples per second. which is good for business. because planes use less fuel, spend less time on the ground and more time in the air. suddenly, faraway places don't seem so...far away. ♪ one word you love, one word you hate. beer. tax. how much you pay depends on where you live. check out this map for the tax foundation. states with the darker shades pay more in beer taxes. tennessee beer drinkers pay the most. an extra 66 cents for a six-pack, y'all.

alaska, alabama, second and third-highest, this on top of federal taxes on beer. get what? tennessee has no state income tax, so i don't feel bad. >> any more states you would like to offend, by the way? >> i almost died in vermont skiing. >> oh, therefore, you're justified. >> yeah, that's why i have this niece thing here. >> thanks for watching. i'm off for a little while. i'll see you next tuesday. "closing bell" is next. all aboard! ♪ >> was that you? >> anyone? anyone? yeah, that's in my earlier days in my career. welcome to the "crazy train" stock market. i'll bill griffeth. >> and i'm kelly evans. maria bartiromo will be back tomorrow. look at the swings again that we're seeing in the dow jones industrials average. we're down 114 points. yes, that might be a little