>> and higher financing costs for businesses and the u.s. government as well. that's why people are concerned about it and that's the number probably to watch in the next quarter. >> exactly right. >> all right, sue. >> great weekend, ty. see you when you get back here at ingleside cliffs. >> that does it for another week of "power lunch." >> "street signs" because right now. >> it is the last day of the quarter and the final day of the first half. so throw out your old game plan and we have your playbook for the second half and blackberry getting a serious beat-down, down 26% right now as we speak. is there any silver lining here, and google stepping up its game, but could the search giant be spreading itself just a little too thin and is fro-y ott new cupcake?

is this a new icy, creamy treat? talk about a comeback, guys. dow down 131 points but don't let the red arrows fool you but it's been the first half since 1998 and the best first half for the dow since 1999. let's get out to josh lipton at the nyc. ibm down 2.4%, the biggest negative contributor to the dow right now and the reason why it's holding in the red, even as the other two indices have managed to pull into the green. >> that's right. looking at the blue chips right now, well off their session lows, but you're absolutely right. >> the analysts saying its results suggest headwinds for ibm and if you look at the spx, the i.t. service stocks, same story, acn, ibm, computer

sciences and tdc. opened, if you have a look at some of the gold miners, showing some green aem, men and that sector under a lot of pressure the gdx, miners' etf down 16% this year. last day of the quarter and last day of the first half so how do we compare? look at the s&p 500, you're up about 12% and compare that with the v o'u and emerging markets down. >> rick santelli, a lot of action over there in the bond pits and real earned your pay. >> it really is amazing how re-recouped and how we were at 14.8 last friday so to see the strength condition and outflows in equity and equity etfs, humongous outflows in bond funds

and watch two out of three auctions this week a little spongy, direct bidding, foreign banks, interest rates basically sideways, it really does call into question how tough of a third quarter it will be and i might not think higher rates will be around all year but many debate whether it will stick around a little longer this go round. >> certainly hope. don't have the kind of velocity and ferocity of moves coming into the next week which brings me to our next segment. stocks are set to close out the best first half of the year since the '90s so is the second half going to party like it's 19912349 let's ask. matt mccormick, a portfolio manager and a portfolio manager of the five-staff villory funds. let's put to bed the first half. what will the second half look like? >> i think we'll see more

volatility. i think the rise in interest rates is going to cause statement shock for many investors who will be surprised to find out can lose money in bonds, and i think that may cause some retail investors to panic and sell and move rates higher, and i think that will have an impact and not to mention china, japan, europe. it will be a bumpy remainder part of the year. >> volatility notwithstanding, matt, can we end higher or lower by december 31st? >> we'll kind of grind out and tread on the bottom and move up towards end of the year hopefully as the economy continues to improve but what i would do is buy needs not wants and i think it's an area where it's an area to be a little more conservative than aggress sniff. >> sandy, what about you? >> i think the market will work its way up to 1,684 where it hit

its prior highs and you'll form a double top and then irany we get back to 1,500 or so as we get into mid-july and clear the year at 1700. i agree with matt. we'll see more volatility. feel like it's picking up a dime in front of a steam roller. no return and you can really get run over literally so you just lost 4% this months and while we've seen 23 billion come out of bonds, it will ultimately flow into stocks and we'll end higher than where we are today. >> the rising yield environment, matt, still going for dividend stocks, right? >> not all dividends are created equal, mandy. i would avoid the utility and teleconnames where they have high payout ratios and stretch valuations but some areas from the 2.5 to yeelgd namielding na

are dividend growth and worth taking a look at. a name like intel or qualcomm, qualcomm just increased their dividend 40% a couple months ago. i think that's a strong sign of current and future earnings power and something worth taking a look at. >> wait. avoid utilities, avoid telecoms and go for the other sectors, aren't utilities known for the dividends? >> yes, but they are not dividend growers, mandy, and a lot of payouts are stretch. telecoms, their payout ratio is over 102%. for utilities it's 60% meek they don't have the growing power to control the dividend. a lot of the utilities in telecom are bond surrogates and i would be very choosey in selecting those names. don't be a yield hog. buy growth. >> sandy, you don't like bonds. where are you going to put the money you're taking out of bonds?

i'll continue avoiding defense. i want to buy good quality growth companies that are trading at reasonable prices versus my -- versus their multiples so that's what i want to do is continue to play offense as we have for the last two years so that's where were and we actually started a new all equity fund for the second time in our firm's 102-year history that has no exposure to bonds so that kind of shows you how we feel about it. >> got t.matt, sandy, enjoy your weekend. thanks for joining us on "street signs." >> gold on track for its worst quarterly performance since this song was number one. do you know what year that was? plus, a gold fire sale on ebay. >> and here's what to watch for in real estate in the quarter ahead. rising interest rates are the wild card for wires, sellers, builders and reits and home

prices up 12% from a year ago and the average rate on the 30-year fixed was also up nearly one full percentage point in q2. that will put pressure hop home prices. it could also hit the big builders who have been raising home prices even more aggressively. refis also took a hit with rights rates. that could trickle down to the home improvement sector in q3 and real estate investment trusts have already been feeling the paper. they could fall even more out of favor. that's your q3 real estate sectornomics. i'm diana olick. [ female announcer ] there's one thing dave's always wanted to do when he retires -- keep working, but for himself. so as his financial advisor, i took a look at everything he has. the 401(k). insurance policies. even money he's invested elsewhere. we're building a retirement plan to help him launch a second career. dave's flight school. go dave. when people talk, great things can happen. so start a conversation with an advisor who's fully invested in you.

wells fargo advisors. together we'll go far.

we're kag it the dumbest smartphone ever collecting 11,000 smartphones during couture week in paris. they are made with 18 karat gold and blue ostrich and black alligator and, of course, diamonds but one of the most expensive on the list is calling the black insane mold set with 75 baguette cut diamonds and costs almost $100,000 for the person who has everything, and in the meantime, talking of luxury goods, check out gold, posting its worst quarter since at least the 1970s. i bet gold bugs are glad we're closing out this quarter. >> definitely are and looking at gold prices that have slid about

27% so far this year and 23% in the last three months. looking at gold prices that have fallen significantly, mandy, just in the last two weeks and a lot of the talk over the fed and whether or not they will be tapering and how soon that will occur, part of the reason for that slide but we're also looking at heavy selling in the exchange-traded fund market and the largest gold etf, the gld down sharply in the last month. that's another factor that has exacerbated the slide in gold prices and on the other side of the coin, physical demand which is tick higher and the u.s. mint is reporting we're continuing to see an increase and the american eagle coin topped 500,000 coins in terms of the number of sales just in the month of june, and it continues to rise. where are folks going to get these coins? well, they are going to authorize dealers, including one

on obey, the app mention bouillon center on ebay has seen tremendous volume since it started its launch in october last year and much of the growth that it has seen has come in just the last several months. during the last three months, april, may and june we've had the top selling days at the bouillon center on ebay and three of those occurred this week, so we know there's tremendous demand coming out of the united states public looking for physical gold and silver, especially at these levels. >> now, that's here in the u.s. there are some analysts that say though when you look globally, the demand for physical gold, gold bars and gold coins and gold jewelry is not as strong as when we saw that big selloff back in april, so that may be one factor that perhaps does not stem the slide. that's what they will be watching. mandy, back to you. >> sharon, gold is well and

good, but. we've got the croo-founder at 1 handles on the show. >> that's probably my kids' favorite place to go, and so that is definitely going to be a segment i'll watch and i'll call them after camp so they can see who is running the company who is spending all my money. >> they will be so excited. >> okay. how low is gold going to go? let's ask george jerald from rbc capital markets. george, what are we looking at here, a 1,000 handle? >> well, not necessarily. i think probably today there was a great relief. i think you've seen amazing short covering, bargain hunting and short orders selling out and nothing offered from the buyer and they had to move the prices up sharp ly in order to get mor

gold by the end of the day and by the end of the day we were up $15 after being down $20 so that's a $35 swing and that usually signals a change in direction. >> part of a short-term trade as an investment, what's the case for gold right now? >> oh, well, you know, can you make a very good case for gold because deficits are going to increase. inflation will be coming back even though interest rates will be moving up sometime in the next couple of years. they are not going to be moving up supposedly for the next year or two and i think you're going to see continued lowering of the currencies and then people will realize that they have had a great opportunity at below 1200 to buy some gold and then just as the end of the quarter came and the fund managers had to move to better performing assets, they will be moving back to gold.

>> well, certainly the deterioration of fiat currencies is the deterioration of gold and economies getting better, i can only see the u.s. dollar getting stronger, no? >> yes, but you don't necessarily have to have lower gold when you have a stronger dollar, but then you have to look and see what damage there will be later on in the year from storms, to bad weather and crops, whether there will be other -- look at crude oil up all this time and today you had very good consumer figures and even chairman bernanke said that they wouldn't mind seeing 2% at least inflation upcoming. >> you have to leave it there, george. thanks very much for joining us today. meantime, i want to show you guys some live pictures happening right now as president obama has just landed in johannesburg, south africa. he is embarking on the second

leg of his three-country african journey. obviously we're very focused on what's happening in south africa recently in light of the health of mandela. he still remains in hospital, okay. we do wish him and his family the very best. mean tirmgs just ahead on "street signs," some summer fun. taylor swift concerts and the fro-yo boom. herb's going truckin' and a navistar update with herb. we went out and asked people a simple question: how old is the oldest person you've known? we gave people a sticker and had them show us. we learned a lot of us have known someone who's lived well into their 90s. and that's a great thing. but even though we're living longer, one thing that hasn't changed: the official retirement age. ♪ the question is how do you make sure you have the money you need to enjoy all of these years. ♪

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.

chip starnes, the american ceo held hostage by his own workers in china, is now back in the united states and speaking out about his experience. he was on "squawk box" earlier this morning and that was guest hosted by our very own brian sullivan talking about whether or not he has plans to go back to china, and here's what he told brian. >> i don't know if at this particular moment it would be wise for me to go back. i don't think they are too happen with me right now. i've got partners and cfo. there's some issues that need to be dealt with head on and right after this this morning i'll be heading into the office to begin this task.

>> he also spoke about the overall environment for the business in china right now and that's what he had to say on that topic. >> the currencies, you've lost 25% against the usda over the past 40 to 60 months, a shrinking labor population, escalating salaries that are going on, and the business environment for more of commodity-driven items like that, plastics and needing labor and a force to do do it, other parts of the world are more attractive. >> herb is back and here with two updates on stocks that he's been following for some time. following some quiet personnel changes over at green mountain and this is a stock that you've been following for a very long time. a new ceo, what's going on? >> not any old changes at green mountain, a series of back to back to back executive and board room changes that are pretty much going unnoticed. most interesting the founder, robert stiller, and former ceo larry blanford who both quit the

board last wednesday and friday respectively, also leaving the company this week is robert mccrery who runs green mountain's k-cup division which accounts for half its ref rue and the departure comes as k-cup slows. they were buried in a press release announcing the naming of three new directors by new ceo brian kelley. there was no press release mentioning mccrery's depart use, only an s.e.c. filing earlier this week. stiller said merely the time was right to retire, to pursue a variety of personal interests, and in a statement today, yesterday actually, green mountain told me mccrery's departure was the result of previously announced consolidations. stiller and blanford's departures are part of the natural evolution of the board as the company changes. >> new management, changes around there. does that necessarily mean better performance for the stock? >> what i want to know is why they didn't wait out their terms

and why they quit and there wasn't an election. three guys lyrics maybe it's all coincident a. maybe it's a new guy coming in. got to lock at it and say there's been clouds around the company. i don't know what it means for the stock. >> talking about changes at the top. navistar, a company that has had some problems and still not out of woods. >> some don't think they are. they have a new cf ork the last of the big management changes of this company but still have a ton of dollars in debt as they try to transition from their botched bet on a new engine. give me credit. analyst vicky brian who rates the stock to sell says the engine's failure turned navistar no a multi-billion dollar start-up enterprise fighting for survival. she says the biggest challenge will be to maintain cash to fund the transition, and she says it will take about two quarters or so to see what happens. >> who was the analyst that filed for bankruptcy. >> vicky brian. the analyst and still thinks that thing is hardly, as you

said, when we got into this, out of woods or certainly out of the mud. we'll keep on watching. >> we'll get you back to "street talk" as well. >> meantime, the food you eat may get cheaper next year and some surprises in a highly unanticipated crop report from the usda. out to jane wells. hey, jane. >> hey, mandy, corn, soy, wheat all dropping today. as it turns out, farmers are planting more than expected despite wet weather. corn heading towards $5 a bushel as the usda estimates there will be 5.7 million acres planted, the most since 1976. analysts were predicting 2 million acres less than that. jerry gulke is afraid of this. growing conditions for him have been fantastic, not like a year ago when the drought hit and at the last minute he switched some planting decisions. >> i actually converted over 10%

to 15% soybeans to corn and got trapped emotionally in that idea and all i heard about was how wet it was in iowa and minnesota and i've got perfect growing conditions, i can make more planting the corn and we'll see how many other people think like i do. >> not sure he'll make $120 an acre of corn. apparently a few other people thought like he did. corn could go down to $4 at the cme, 3.50 on the cash market. that was the old normal before the new normal, could drive down food prices eventually, but more corn doesn't mean fewer beans. contra contrary. usda expects 78 million acres and more wheat is being planted. analysts expected less. wheat continued its longest losing streak in three years. while plantings are higher than expected, supplies on hand are lower than thought, especially coverage of the down to a little under $2.2.8 billion bushels, a

16 year low. will we run out of corn, mandy? jerry gulke says there's absolutely no chance of that happening. >> want to grab on this subject before you go. remember when we were kind of drowning in cupcakes, mega cupcakes and mini cupcakes and cupcakes in all different sizes and colors, is the fro-yo boom as big out west as it is out here? >> there's more frozenio durt places than medical marijuana outlets. there's a cycle. 25 years ago, anybody remember penguins frozen yogurt, big then and disappeared and now they are everywhere. >> the ceo and founder of 16 handles on later on in this show so stick around and find out whether or not he thinks the boom is going to stay with us. thanks a lot for that, jane. still ahead, the hot latte in street talk and blackberry's worst day in more than a decade.

down 26% today alone. wait until you hear how far that stock has fallen since its record high and is google the king of innovation or are they spreading themselves just too thin these days? "street signs" back in two. te o. you get to take ownership of the choices you make. the person you become. i've been around long enough to recognize the people who are out there owning it. the ones getting involved and staying engaged. they're not sitting by as their life unfolds. and they're not afraid to question the path they're on. because the one question they never want to ask is "how did i end up here?" i started schwab for those people.

people who want to take ownership of their investments, like they do in every other aspect of their lives.

it the "street talk" time and i've got herb from the peanut gallery to chime in whenever he's got a thought. >> got lots of thoughts. new sparkle drinks have been tested in over 100 stores in atlanta and also in austin as well which could drive sales in offpeek mid-afternoon hours if launched nationally. rbc has the drinks hand crafted with a new-nation machine. you can see performing today only mildly to the upside. >> another sign that this company cannot live by coffee alone and very importantly they said this is just a test. >> just a test. >> jetblue airways, meantime, moving higher. the founder denying claims that he plans to buy back control of this airline. what do you reckon about this? >> i wonder why the claims are out there in the first place but he'd be one of the founders who wants to come back if it were to happen. >> smoker and fire, where

there's smoke there may be fire. >> accenture is also to the downside very heavily, today, down by 10% and still is right now. why? >> you know, what i'm more interested is they are talking about the services business and not coming in as expected. i'm more interested in the fact that companies like ibm, especially ibm, down 5% at one point today and dragged down by this, and, you know, the issue is that's the cash cow services, but, of course, that's just typical knee jerk in the street. we'll see what happens. >> just to remind our viewers, take a look at three indices, the s&p is yet to move into positive territory and the dow still down, mainly because of ibm dragging it. tes larks i know you're quite excited about this one with w webbush with a neutral rating. >> in the end what i worry about when they get the stations out there, how long will people be willing to wait in line to get

the recharge? >> you think there will be a line. >> they hope there's a line. >> okay. blackberry is a big focus today. it's having its worst day in over 12 years. and get this, folks, just shut up and listen because the stock is down 93%, 93% since hitting its record close of $147 all the way back in 2008, and i tweeted this out earlier, and one person even tweeted back, when is it going to be down 100%? >> basically the press release, they sort of suggested they don't know where it's going to go, never want to see that in a press release, this was selling into the carriers. that's supposed to be the easy part of the story and if that's the hard part, we'll see what happens. of course, people say the new phone will come out, the new phone with the actual keyboard isn't real part of this quarter. maybe it will help them out next quarter. >> certainly hope so. meantime, want to know where

blackberry stock is going, ed schneider at charter equity research, what do you think? >> i think that it's in for rougher times ahead. what's clearly happening is they are losing their services business which we and a lot of other folks anticipated. the model that the blackberry was built and thrived on as you pointed out the last decade was over, and it was northbound out when the smartphones came and reacted way too slowly and now they are suffering. what will probably happen here is you're going to see the atrophy of the services business and all that margin goes out the door and they will wind up being a very narrowly focused vertical handset company with a little bit of services revenue and focus on the enterprise which is why the phones are selling okay. everything else will get peeled away. why is this so surprising to people? what were people expecting? was this just a classic wall street looking for a story? >> well, i mean, if you studied handsets for a long time and covered the space in 15 years, this is not a surprise at all. this story has played out

several other times. motorola, nokia, sony ericsson, we can go through the long list. the reason people are surprised most don't have a long view and it's a new story to them and the street often timss when the stock has been down for a year or two starts pushing as a turnaround story. hey, if they just get, you know, 100 or two-2-hundred increases, this can be a really big turnaround. that's not where you want to folkus. want to focus what's going on in the competitive market and in operations and if that's not improving, very hard to improve that, it's not going to turn around and i don't think rim is either. >> what about what they are doing now to ensure its survival? >> believe it or not, rim's core business is a good business t.generates cash and is very profitable, not going to be as big as it was four or five years ago when they were the only game in town and i don't see any way they can get back from it. the people taking rim's business from them, apple,

samsung, even some of the second-tier oems are getting into the business now, big and better funded. rim is pulling back from the channel because they are losing money on some phones. >> since you've been following this space for so long, what do you think the likelihood is we see this again with another manufacturer and who would that be down the road? who is most at risk after blackberry? >> not likely to see another big drop but i think nokia is in for a rough time. >> already hit them. what about the big guys, the samsung, the apple, android system? anyone else at risk? >> no. i mean, it has never been the case that one of the leading oems has seen this big of a drop without their cooperation, and it's usually arrogance. get to the top of the pile and start ignoring competition and that gives the competitor time to come in. neither apple or samsung are doing it. samsung definitely not doing it. samsung is just attacking every market with every phone. apple is a little arrogant, and they are a little sploe slow to react to the new model, so they

are going to see deflation over the next couple of years but i don't see the bottom following out, in two years we'll see what happens. >> the stock nonetheless is still down 25% year to date. that's apple. sen tekds left, where's the stock of blackberry going, what's the rating? >> a neutral and the stock has been for a while. probably see it trade up a little bit as people hang more hopes on it but i think you'll see it fall down in steps. as you lose all that revenue and margin it's got to come down. >> good to have you on the show and thanks very much for that. >> my pleasure. "wall street journal" reporting that google is developing a watch and a game console. well, this, of course, got us thinking is google the leader in innovation or just straying too far from its search competency. let's look the principal analyst and roque is google starting to experiment too much and spreading itself too thin? >> you know, i'm a big fan google, and their overall

innovation. if you look at what they spend on r & d as percent of revenue, 13%, roughly the same as microsoft. clearly some duds in their innovation but really interesting products like maps and mail. so, you know, i'm tempted to give them the benefit of the doubt. >> mind you, lance, they treat every single product that they attempt kind of like an experiment and i guess when you've got that much money you can afford to do it like the eccentric billionaire who tries to resurrect dinosaurs, you move on. does that worry you? >> it does worry me. these all rumor and speculation. who really knows if they are going to build a gaming console or watch. i don't think they are going to. sometimes it worries me, google's approach because, for example, on monday, google reader is going to be shut down because ultimately it was an experiment and the millions of people use it, it's going away because google has other things that it wants to do, and -- and, you know, 20% of every google's

employee time is spending their own sort of passion project and that's maybe an experiment, too. >> but lance, what's the problem with that? that's the whole point of these businesses is to try to come up with something good. most of them are going to fail probably. what's the alternative? >> well, no, look, i'm not speaking out against innovation but i feel -- i sometimes think that there's a clear message from companies about what's a product and what is purely a beta or experiment. you know, apple ships products. google ships products, and does experiments and kind of treats them in equal fashion this. can be very confusing to consumers and very confuse together market and i think that google is a grownup company now and maybe it's time to stop treating everything like an experiment. >> okay. to that point, roque, you know what? thinking about it may be it's a good thing because we don't have the googles of the world experimenting with mavis things and a driverless car. wholes is going to do it?

>> exactly. i want my driverless car. i want these huge technology innovations, and there are very, very few companies that can afford to put the kind of money that goggle is putting behind this and even at that not putting whole lot of money behind it so it's great to see certainly our government is not funding science the way it should. >> just very quickly on what lance was saying he's a little bit skeptical that actually they are entering into the game console mark. would you agree with that, that this might just be some rumors? >> i think these are probably just rumors. the game console market is a very, very tough market. you've got microsoft. you've got sony in there. they have been in there for a long time. got a lot of experience. it's going to be a tough one to break into. >> rocky, lance, great you have to on the show. thank you very much. >> thank you. >> a pleasure. >> we are getting word into cnbc that jc penney has become the latest retailer to drop the embattled chef paula deen. that follows, of course, kmart and sears who dropped deen earlier today after she admitted in court papers of using a

racial slur. what do you think of this, an awful lost xps have been dropping deen and everybody has an opinion on it? >> someone sort of put her on a moratorium, sort of on a shelf for a while. look, i think you do that. they have to do it. they have no choice, but what's fascinating is how one is following the other. it's like some are looking to see what the others have done before they do it. >> no one wants to be the last man standing. >> but they also don't want tonight first so this is a very sensitive situation, and i wouldn't be surprised at some point to see some come back. we've seen worse people, worse situations, people come from such worse situations and resurrect their careers. in this case, will she? i don't know, but we've steen. >> we have seen it before. just have to wait and see where she goes with this story from here as well. thank you very much for that, herb. grab some sunblock. grab a beach towel because up next we'll go all in on summer but first up the tale of two concerts and then the fro-yo boom but before we hit the beach

let's hit "closing bell." what's coming up, bill griffith? >> our special halfway there show, mid-point of the year. top money managers standing by to give you the best stock picks for the second half of 2013 and how should you position your portfolio for the back half of the year? our panel of financial advisers with a combined 70 years of experience and close to $15 billion of assets will weigh in. and one housing expert says the recent rise in interest rates could actually help, not hurt the red hot housing market. kayla tauschy is with me today. look forward to seeing you at the top of the all-important last trading hour. until then, more "street signs" coming your way. [ 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.

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corvettes. that's up 6% more than the year prior. well, the summer concert season is here, folks, and boy bands, one direction and kid rock, u.s. tours today but guess what? they have two very different approaches to making money on these huge concert tours, so joining us to explain it an event ticket search engine. grade you have to with us today. explain how these two will have extremely different tour strategies. >> well, kid rock has adopted a low-price strategy where he's offering tickets for flat fees around $25 for all seats. premium seats but for the most part you can get into a kid rock show for 25 pucks. as a result he's sharing revenue on ticket sales and on concessions and other items which is not something that's typically happened in the past, in other words, only making $25 on the ticket, he'll make it up for parking revenue, beer, food,

various other things? >> exactly. >> $4 so he's not only making it affordable, he's make the beer affordable and that's -- that's in opposition to the bigger concerts like the rolling stones where they are saying we'll profit maximize and make sure we're charging everything we can and make money on signatures. >> perhaps the parents of the teens will go and see one direction, but how much are they going to charge, like 600 or more? >> the secondary market so not the primary market. the stones had very high six prices. we've now seen the secondary market drive that up to over $1,000 for an average price to a show. >> which strategy is going to make more money, kid rock or one direction? >> well, it depends on who you're making money for. the one direction will make money for secondary sellers, stub hub and ebay and the kid rock strategy will make more

money for the live nations and ags of the world that are ry pr >> going forward, do you think the kid rock strategy will be the strategy of the future is this what we're going to see, because i don't know about you, because, okay, rolling stones, great, love them, love one direction, my kids do, but that's a lot of money for a ticket. >> it is a lot of money. some tours can come in in that price and a small percentage and for the most part live nation and other companies on tours have to figure out how to get affordable info out and we provide a full list of event and sellers, including primary, so we really try to give consumers the best options to find all the places that they can buy and give them a central place to do that on our site. >> that's a very useful thing to know but if the kid rock stradgy works we'll see a lot of other musicians and bands follow suit. this is something that we'll see more of in the future. >> i think, yes, it depends on the provial of the band. kid rock is in it for the long term. one direction or rolling stones

have one or two tours left. one direction has already launched their 2014 tour, so start buying tickets now. they are on sale, but if you've got a two-year window you'll profit maximize. if you're in it for the long run and will be around for 15 or 20 years, you want to make your fans happy. >> feely feels like 1965 all over again. >> it does, paul mccartney. >> one direction, paul mccartney, the brit invasion, but not just here. the brit invasion of the world. >> the one direction tour was 120-city what we call mega tour, all over the world. paul mccartney is there, other british bands like black sabbath that haven't played in a while, eagles, pink, beyonce, top concerts for the summer. the brits have the higher prices. >> i'll literally put on the spot, i don't know whether you note answer, but how many of these tours actually come out ahead?

costs a lot of money to put these tours on. all said and done, what percentage don't make money? >> the fact that there's so many tours out there. live nation and ag are pretty good at what they do, doing it for years and years and they are not in the business of losing money on tours but people are trying different innovative strategies, kid rock example is evidence of that, so i think they are certainly looking for other ways to monetize the tour beyond just ticket sales and concessions which has been kind of the traditional approach. >> hats off to kid rock. hope it pays off. thanks so much for joining us today. >> coming up next, the host thing in america right now is frozen yogurt. how 16 handles is piling it on in the fro-yo boom. the ceo next. [ kitt ] you know what's impressive?

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welcome back, everybody. well, if you live in new york city, take a look at this. you will see frozen yogurt shops all over the place. of all different shapes and sizes. of course, one of them is 16 handles. after recently going to 16 handles and then just walking a

few blocks and seeing some other frozen yogurt shops like pink berry and various other stores. so we've actually decided to bring along the ceo and founder of 16 handles. find out what is exactly going on with this frozen yogurt boom and whether or not it is going to become a bust. thank you very much for joining us today. great to have you with us and of course you've brought along all these flavors from 16 handles and the toppings which are the big excitement for my kids at least when we go to your store and courtney reagan, thank you for joining in, as well. >> sure. >> so there's a massive boom going on. my question is, how long this can last, the cupcake boom didn't last that long and now all of those stores are going out of business, will the same happen to frozen yogurt. >> i don't think so. it's an american pass time. we see ice cream still around and the leader in the category. but people are making better for you snacking decisions. and when it comes to that, frozen yogurt is a healthier alternative and i think people like the fact that it tastes like ice cream, it's delicious. >> okay. i get the whole thing about why

frozen yogurt is delicious, why everybody loves it, but at the same time, when you have, for example, something like in the same block four different competing frozen yogurt stores, yours being one of them, how can all of you survive? >> that's the thing, i think right now because frozen yogurt is such a hot topic, you're going to see a lot. but just like with anything else, customers will vote with their wallets and at the end only the strong brands will survive. >> and when you look at 16 handles, your business model is different. you get to go and make the pulls yourself. so that probably helps save on your labor costs, gives kids a part of something to be a part of. >> absolutely. so one of the things i wanted to do was bring the self-serve model which became popular in california over to the new york market. and so we were the first ones to bring this self-serve concept pay by weight. and it's doing very well, it's certainly the business method of choice. >> let's talk about the dollar and cents, there was a big article in the frozen yogurt boom recently on the "wall

street journal" online version. it was saying that profit margins are amazing, right. the yogurt selling for 55 cents an ounce in manhattan costs you the operator less than a dime. >> am allowed to say that? yes, the profit margins are great for this product. >> a bowl a spoon a lid, 20 cents, by the time your kid has piled up all of these things like the blue breeze on top, you walk away $6 lighter. that's a good healthy business model. >> it is a healthy business model and i think that's why it's a great business opportunity to join. you know, we have all natural ingredients in our flavors here with our artisan collection, but it doesn't taste -- it tastes super natural, actually. >> what happens the rest of the year when it's not summer or spring? how do you make sure you get the foot traffic in the stores? >> that's a good question. i think by creating the lounge experience, especially in new york where there's not too many places to go, people like toing on congregate and socialize.

>> nine stores in manhattan alone, but there's a big nation out there, where are you going to expand to? >> two stores opening up in the next couple of months. growing in the tri-state area, we'll be at 50 stores at the end of this year and there's international that opens up a whole other -- >> which country is it going to go to? >> a lot of opportunity. >> well, i hope you can stay ahead of the competition. there's a lot of competition out there. good luck. >> thank you. >> good luck. >> soloman troy joining us. in the meantime, there is stealing post-its from the office and then there's this, the story behind this image next. there is a pursuit we all share. a better life for your family, a better opportunity for your business, a better legacy to leave the world. we have always believed in this pursuit,

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"how did i end up here?" i started schwab for those people. people who want to take ownership of their investments, like they do in every other aspect of their lives. we've all borrowed office supplies, right? a notebook there, pen there, post-it note, but this guy really takes the cake. a southwest airlines employee was seen cruising around in a borrowed airplane stairway. he says the employee did nothing wrong. i guess it's all about semantics. anyway, as we can see here, we've got a whole pile of lovely frozen yogurt in front of us. and any moment now all the employees from cnbc that have currently gathered around us here on the makeshift cnbc street signs studio including

herb greenberg have come to collect and trial all these different flavors, 16 flavors, i believe in front of us. in the meantime, we've got the dow which is down by 55 points, part of that, of course, due to ibm being the biggest loser on the dow. we manage to pull right off the lows of the day. we've got one more hour in the trading day. "closing bell" is next. have a great weekend. see you monday. ♪ yes, indeed, welcome to a special edition of "closing bell," we are one hour away from being half way there. >> i see what they did there. >> you like that? little symmetry there, as in one hour to go before the first half of this trading year is over. >> i'm kayla tausche, maria bartiromo back in the chair on monday. she'll have an interview with former disney