announces given the news out of china with its growth rate. going to be very fascinating. >> what show gives you cheddar bacon pretzel burgers, man-eating whales, lawyers fighting and aaron rodgers' contract and big bet. that's "power lunch," and that's "power lunch" for today. >> "street signs" begins right now. we'll see you tomorrow. apple earnings out tonight. the world is going to be watching them like a royal baby, but do apple even matter to the market anymore? do earnings even matter. it's a huge debate. we're going to dig n.speaking of digging in, can junk food save the world and solve the obesity crisis. it just might. we'll tell you why, and why you may want to move to detroit and why i think maybe one big bank should move. hi, everybody, happy tuesday, lots of cool stuff on the show today. let us start though by doing what we do best, hitting the

stock market. bob pins at the new york stock exchange and, bob, our theme of this show is do earnings matter. markets run. earnings are up, but some people are saying who cares. it's all about the fed, what say you? all right. waiting on bob down there. when we get bob we'll bring him to you. the dow is up 38 points, the nasdaq down 10, the s&p down 1 point. all right. perhaps the biggest earnings report of all is out in just a few hours. we're talking, of course, about apple. now, apple used to be the wind beneath the market wings. lock at this five-year chart. got the dow in green and apple in while. now apple outperformed the dow and they track pretty closely until you get to the far right side here, boom. that's a one-year chart. let's shift it, if we can. it's a different story. the dow has been like a british boy band, one direction. well, apple simply has not done much. if anything, it's gone down. in other words, the dow and

apple have diverged after years of tracking. let's bring in stuart jeffrey, a global analyst with nomura. the consensus is right around 728 a share. i want to get to where you stand first but i want to ask you what i just showed our viewers. do you believe that apple still is important to the overall stock market? >> well, in terms of market capitalization ses worth over $400 billion so important from that perspective but the real problem is growth. last year 45% year on year. it's gone to 0% revenue growth this corner. earnings growing at 60% last year, down 20% this quarter so in terms of apple being a driver i think it's -- that role has been and done and that question is whether they can get back into a growth situation or whether market contraction drags them down for a few years. >> can apple get back no a growth situation? >> not going to find that this

quarter. what guidance they gave don't really have new products and what we're really looking for is the new product announcements and that's not going to be enough for ios 7 to be more cannibal-esque. just an iphone 5s upgrade or mid-range iphone won't give us too much visibility into the long-term growth aspects. >> where are you? >> we've seen samsung htc, nokia and blackberry all miss. all, of course, high-end smartphone focused on developed markets so there's a riskt iphone two has had a tough quarter. data out of at&t to show lower-priced iphones which would suggest some pressure and this coming quarter the launch

schedule for the new products probably depends heavy on ios 7. chances are it's not as mature as this should be. won't launch an immature product and there will be no new phone launches in september and that means the bottom end of guidance could be pretty low. >> what's the most important -- everyone says who cares about earnings, right? the numbers can be manipulated through stock buy backs. what's the single most important number to you for apple. >> a little about gross margins. can they hold on to the pricing premium and prevent the new products from diluting their gross margins, do guide for new products in the coming quarter. does that mean the 37% gross margin gets dragged down or tooubl actually stabilize and if we can get stabilization and gross mar general stabilization we'll have eps growth as well. >> very quickly, stuart. you're clearly a brit, your name is stuart. should the new king be named stuart? lovely if it was, but i think

james is what the rumor mill suggests. >> stuart jeffrey, a real pleasure. thanks for having a little bit of fun at the end. we do appreciate t.speaking of the royal baby, that's a live picture right now of a door. that's a door. i'm not sure if it swings in or out but that is st. mary's hospital in london. the royal baby has emerged, the mother duchess kate and his father, princes william with the throngs of media soon to be coming out. we expect them to come out that door. there's probably a secret tunnel though somewhere, who knows. they might use. either way, if and when they come out with the future king, we will, of course, show you as well. all right. as earnings season rolls on we want to ask a very controversial question. do earnings even matter to the overall market? let's ask gina sanchez who aparentally is in london just for us, for you, for the royal baby. like why are you actually there. don't lie because we know. >> i'm here for me.

i have work to do here. everybody is screaming about the fed, question, and do plain old earnings even matter anymore, guyana? >> i think they matter in the long run. right now this story, the question that everybody is asking themselves is the health -- is the health of this recovery solid enough for the fed to take away or to begin the taper? and so really it kind of doesn't matter what earnings are because what people are most focused on is whether or not the liquidity will continue, and that has been driving multiples, but if earnings matter to that story in that they are not stellar. we still don't see fantastic growth out of sales. in fact, we still see quite a bit of disappointman on the sales side and while earnings are being manipulated sales numbers aren't really that fantastic and we're seeing that continue to play as we, you know, see this earnings season

go ahead and that just tells us that the growth picture isn't that solid. it's obviously a recovery, but it's not a super strong growth recovery. >> everybody hates the eps number these days. you hear all the pundits, who cares. it's buybacks, it's this, no one cares, i get that, so why do we pay attention to earnings at all? >> well, i mean, obviously there's -- there's two reasons you're going to see growth. the multiple expands or the actual underlying fundamentals are getting better and i think a lot of folks are waiting for the underlying fundamentals to really be solid, and, you know, that's the kind of growth recovery that works you know, that would really start to favor cyclicals and that we haven't seen yet so we seen a lot of bid up defenses that, you know, that have gotten really, really expensive, and -- and so, you know, obviously watching the multiples does matter. so, you know, i mean, mostly i

think what most people are concerned about right now is whether or not you're in stocks or bonds and, unfortunately, the -- the level of yield is more important to that than actual earnings or the health of the companies. >> yeah, because according to thompson, about 70% of companies that have reported earnings have beaten the consensus forecast. the average is 63, so we're running above average by about 7%. however. >> right. >> however, we need to update that pie chart. the answer is 70. >> however, people say, well, the expectations were so bad, so everybody's got excuses about everything. >> right, right, and i would take that -- that a step further and say if you look at the number of companies that have beat on sales, those are barely slivering by and right now half of this sectors have actually shown negative sales growth, absolute sales growth. talking about a surprise, not a

surprise, the actual growth. not that great a story. >> not great or downright bad? >> it's downright bad on the sales side. >> okay. gi gina, you know, i love you and respect you to death, but then why have stocks continued to go up, right, if earnings are re-tweaked and not that great. sales growth is not happening. the dow is at all-time highs. connect the two like a hyphenated royal family middle name, how do we do that? >> liquidity. there's a lot of liquidity in the system, and even though yields have adjusted up to a new level, they are still -- bernanke has managed to talk the markets back off the ledge yet again, and quite frankly the data, you know, the data that's come out has been just mixed enough to sort of make people realize, you know, that this liquidity feeding trough isn't going away any time soon and as

long as there's liquidity and dampened excess, you know, excess demand for -- for assets, they are going to flow into -- they are going to flow into equities and that's exactly what we've seen. >> and i've got to remind our viewers just once again that we've gotten a few minute notice, a few minutes ago, to hopefully see and get our first look at royal baby. when that happens we'll bring it -- >> i've got to go. >> it's not yet. we've got like the three-minute warning eight minutes ago so this baby is already setting a dangerous precedent of tardiness. i for one hope they will solve this problem so i'll continue on with the interview until we see the little lad poke its head out the door. when the fed, not if, when the fed pulls the rug of liquidity out, they will at some point, right? >> yes. >> a big debate when they will. are stocks going to tank? are stocks going to completely collapse? >> it depends, if they pull the rug out early and you haven't

seen sort of strong growth or at least solid sales growth replace what we've seen, then, yeah, stocks will tank. if you start to see solid performance because there is in fact a pickup in underlying economic activity that is translating through to sales and, therefore, margins, that could actually be very powerful for stocks, so you could have a goldilocks scenario where ben lets it go no a bubble territory and pulls it out just as things are getting better and you actually see the "e" expanding rather than the pe. so, yeah, there's a story where you could actually have that. >> because, you know, listen, i'm not a math guy, not as smart as you can, but if you make the denominator smaller you throw the whole thing out of whack so that if the "e" goes down you've got bigger multiples in the market and doggone, it somebody better justify that. >> right, right. >> can we do that?

make the case for dow 20000. >> dow 20000. >> not 100 years from now because we'll probably get there, i mean, in the next couple of years. flip sides, gina. >> the flip side is that we have to see demand -- we have to see demand resurface, and in order for demand to resurface you have to see labor markets getting better. you have to see wages improving. we actually haven't seen wages really improving, and as we've seen, you know, labor -- labor improvements, we've also seen improvements in labor participation so you end up with kind of a cloudy story, but in order to get that solid growth that we're talking about, you've got to see people making more money and see companies and ceos putting it to work. i mean, that you haven't seen in a real long time. there's no forward planning here, everyone is sitting on piles of cash and hoarding it so those are things you have to see. that's the road map that the insiders who know the most about the company or corporate outlook

are putting the money to work. >> gina sanchez, always a pleasure. thank you very much. >> thank you, brian. >> you take care. >> speaking of labor participation, we're waiting on the royal baby to pop its head out of there with -- here we go. doors are opening at st. mary's hospital. and if you're listening in. we're getting hopefully our first look at future king. william and kate expected to make an appearance. the frosted glass in the door so it's hard to see what's happening in a small non-frosted area. kind of looking through and i'm listening in. that's what we're looking at, literally two doors, a couple people came through and got wildly cheered, may have been random citizens so lucky them so you should often cheer random citizens, why nomt not. they are probably good people, too. all right. we are waiting again, i'm sure

the whole world is waiting. here we go. doors are reopening, and there they are. letting you listen in to the cheers and try to give you a feel of the moment, william and kate beaming, future king in hand. it almost looks like the baby just tried to wave. stuck his hand up in a royal shake. >> wow, the new parents obviously beaming as all new parents do. it's the most special time in anybody's life. the gentle handover from kate to

william. dad, be careful. i've been there, and that is a tense moment, folks. first time you hold that baby or walk with him. here's a statement. >> well, he's got a good pair of lungs on him, that's for sure. he's a big boy, he's quite heavy, but we're still working on a name, so we'll have that as soon as we can, but the first time we've seen him really so having a proper chance to catch up. very emotional. >> very emotional. such a special time. i think that any parent i think can sort of know what this feeling is like for us. >> it's very special. >> i remind him of his tardiness

when he's a bit older. hopefully the hospital and you guys can all get back to normal and we can look after him. >> he's got her looks, thankfully. >> no, no. >> wait and see. wait an see. >> we've done that already. >> going to weigh more than me, thank god. >> i'm still here, folks, that was a lot more interesting than anything i had to say. hearing from prince william saying it was a special moment and the real news is that they are still working on a name. of course, all the speculation around what the boy's name may be because these things, when you're a member of, you know, a

1,000-year-old monarchy, there's tradition, names that mean things, as i heard a commentator pick a name that doesn't have a bad historical history in your family, a history that stretches back centuries. the first look at the royal baby, and i have to say the prince and princess did not look like new parents. they looked spectacular. on deck, change in gears, the unions upping the stake in detroit. plus, one look at detroit real estate ads and your draws will drop and maybe, just maybe, you might think about moving to detroit. don peebles, detroit's native son is here. grab your bill gulps and bag of cheatos because we've got a writer who says junk food could actually end america's obesity epidemic. that controversial thesis coming up, but, first, take a look at today's mystery chart. yesterday we made it too easy. everybody got it. today here it is, and your hint is this. it's up 25% over the past month.

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unions fighting mad over detroit's bankruptcy. the case, if theity is too broke to pay the pensions how does it manage to manage consulting

contracts? scott cohn is there. a good question. >> that it is and a big part of the union strategy. at the headquarters of american federation and state county and municipal employees which represents most of detroit's non-uniform employees and the contracts, some of them were actually increased in the weeks and months ahead of the bankruptcy files. the bankruptcy filing is in fact part of a scheme by the republican governor rick snyder and his hand picked manager kevyn orr to get around the pension obligations. things like financial audits and among big winners is kevyn orr's former law firm jones day which has billed the city millions, documents show, including more than a quarter million in just the last two weeks of. >> march. >> when you add all this up you're in the range of somewhere

around $22 million that's being paid out to consultants, and at the same time that mr. orr is saying that the city of detroit can't keep overspending, mr. orr since he's been here has increased those contracts. >> there are hundreds of millions of dollars on top of that. all of that a small fraction that the billions the city owes but the unions say the payments show orr has not been negotiating in good faith and besides city workers say a promise is a promise. >> i thought that was a contract. you know, i thought work 30 years. whatever they decide on, the amount of money that you get every month is your retirement, and the i didn't think that could change. >> just heard from a spokesperson from kevyn orr defending those contracts saying the city needs a team to go ahead with the restructuring and that the city is so insolvent it

would take decades to pay what the city owes to the police and fire unions. jones day has not responded for comment but the spokesperson for kevyn orr says that despite all of the billing that jones day has done, the firm has written off some $3 billion in bills it otherwise would have stuck on the taxpayers in the city of detroit, all to be played out at this important bankruptcy hearing in federal court tomorrow and we will be there. >> you know, we've got to go, but they will make jones day the bad guys here because it's either admitting that for 30 years the city was neglected, corrupt and failed. got to have a bad guy and that's jones day and lawyers always get paid. >> no shortage of bad guys. >> we're talking more about it right now. scott cohn, thanks very much. >> here's just a snapshot of some of the homes in detroit, 1,400 square foot three bedroom can be had for the,000 and a 2,700 foot, 5,500 bucks, 5,500

and a 1,400 square foot floe foreclosure, 1,250. home prices are so cheap it's hard not to stand up and take notice but does cheap mean value. don peebles knows from which he speaks and he grew up in detroit and has made millions in real estate. is there value here, don? >> i think there's value in detroit, but it's going to be a long road. you know, the city was built for 2 million people and it expanded in its heyday to accommodate 2 million people and then its population on the current basis has dropped by 75%, yet they still have the landmass that the city has to service and maintain so i think detroit is a victim of the success of the automobile industry and the power of that industry and also the unions. i think the automobile industry made it so there was no public transportation system in detroit, so that workers could not be mobile, and then because they wanted to promote a car industry and then the unions

helped make our automobile industry less competitive and foreign consider caps coming in and capturing our market, building more efficiently at a lower cost and in some instances a better product. >> let's get to your first point, okay? >> everyone looks at detroit and says the car industry built the first middle class, the first real paris of the midwest is what they call it, fourth richest city in the united states at one point. you're saying that the automobile industry has also done a lot to take it down because there was no labor mobility if you were poor. you were stuck in a neighborhood. >> it was a one-industry town. just imagine new york city, the greatest city in the world, the most diverse economy in the world. imagine if the only industry here was financial services. we would be on a downward spiral continuing today. what happened is detroit didn't expand its industries. it didn't look to other growth industries and growth sectors

until it was too late and then, of course, they suffered from extreme corruption within its municipal government going into the 1970s and working its way all the way up to the previous mayor before mayor bean came in. >> listen, i agree with you 100%, did a lot of reading, go back to coleman young but he's gone and out. we can look back 30 years and say here's the root cause of the problem, but, man, airman chair quarterbacking doesn't solve the problems going forward. how do we fix it, 140-square mile city. what do we do, give it half back to the state? i agree. you can't service it. i think, first of all, anyone looking for a quick fix here is on -- is barking up the wrong tree. this is a long-term problem that took decades to manifest itself to the current condition and will take decades to solve. this is a gradual process. i would say the pension workers recipients who have worked for the city for many, many years

made a deal with the government. >> yeah. >> they should get their retirement money, and the state should step in there. >> should they get all of it? >> absolutely. >> where does it come from? >> the state and the federal government. look, the federal government -- >> i agree. where does it come from? >> the federal government spent $80 billion to save gm. they can't $18 billion to help restore confidence in one of our great cities in its most difficult times? i think we should but we need a comprehensive plan of restructuring, that's what this bankruptcy is trying to do, to have a way to clear the table and begin to restructure. >> i don't disagree but we talked about yesterday, if -- let's hope it's not when, if another large city, perhaps one also on a lake in the midwest has a severe crisis like this, if you bail out detroit, aren't you setting the example for other cities then, and what about the cities that have already filed, stockton, jefferson county, where does it stop? that's the criticism of the

bailout. >> well, look, there is a role for the federal government in our society and our form of government, and this is one of those roles. the federal government needs to take a very hard look at helping detroit and helping the state of michigan get through this and come up with a plan because detroit is america's city as well, and the national interest is at stake here for detroit. we can't have a bordering state -- a city that borders canada abandoned or insolvent. we just can't have it. >> it's almost both right now. >> yeah. >> having been back there and been extensively there. don peebles, good luck to your native hometown. >> all right. still ahead. we'll seek with a man who is trying to create the whole foods, if you will, of fast forward and the cover story of "the atlantic" magazine is how junk food could end obesity, end obesity. we'll talk to the writer and find out when the augustus gloop

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the trades you may have missed. i'm melissa lee. i'm joined by cnbc's mary thompson. >> over $2 billion this. company's revenue growth has really been impressive, up five straight years. down in the first quarter. this is what you want to watch. company stock, look at, that year to date, up 30%. it's been a star performer. this is what you want to watch in the second quarter. net interest margin compression is expected. want to see if the company guides to improvements in the second half of the year. see where what spending is on the it card. new credit card, no fee credit card that it has and if this is too high that may cause concerns. this company benefits from very positive credit and spending trends. >> watching electronic arts. >> been a rocket ship this year. looking for a loss of 60 cents.

>> very seasonal and middle east sales coming in december. >> if you want to join the conversation, tweet us #earningssquad. back tomorrow on "squawk on the street." meantime, "street signs" is back after this. ♪ ♪ ♪ [ male announcer ] if you can't stand the heat, get off the test track. get the mercedes-benz you've been burning for at the summer event, going on now at your authorized mercedes-benz dealer. but hurry, offers end july 31st.

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time to reveal today's mystery charm. gave you a tees. some of you smart folks out there got it, it is regeneron. tarrytown, new york-based working on treatments for cancer, asthma, other afflictions. up 25.5% this month, down a little bit today but still regeneron. another mystery chart. going to make it harder and harder and harder. can hacking be good for your wallet? maybe, by getting in on the boom through cyber security firms. for example, cisco announcing

plans to buy source fire for $2.7 billion and that has set a fire under source fire's competitors. a note was put out today saying this is a game-changing deal. covering this space since i was almost in diapers. i'm kidding on that, obviously. never wore diapers. 15 years ago. back when nobody hacked or didn't even know what that is. how big are the business opportunities now? >> i mean, it's a fertile environment. now you're at the point where, you know, cyber security is not just an acquisition, as a game changer acquisition and speaks to where cyber security is heading over the coming years. >> okay. so we're throwing some of the top candidates up. who is the next to be taken out? >> look, front and center is ford net. i mean, if a year from now that's still a public company, i'd be surprised. they continue to be the major player in cyber security.

source fire was obviously the number one. ford net i view at number two and, again, there's a handful of larger players that can get in there. >> the number one likely takeout, others can be taken out. >> any of them. >> palo alto, imperva, ford net, cyber security firms that are not just fundamentally going higher but in terms of m & a. >> $2.1 billion deal for source fire. my gosh, why didn't cisco buy it five years ago when it was a $10 stock, now it's $75 so the valuation has exploded. paying 2.7 billion. what does that tell you about valuations and premiums paid on other deals if they happen? >> it's a typical cisco move, right? they are making sure that this is a space that's definitely starting to take off. >> they have made all the right moves. >> sure, flip cam, a couple. >> cyber security is real, and i

think, you know, what they have seen talking to customers and they have seen the market, that was a mission part of their portfolio and, again, you can't -- you can't organically build these. you need to buy them. >> why can't you build them? >> takes too long, a finite group of companies that have done this for many years and it's all about could and reputation, again, security, you know, no one is going to go with a mom and possible for security. you need to go with a trusted brand and that's where the checkpoint, you know, not necessarily an acquisition play but definitely the technologies and others play out there. >> covering it for 15 years, if one of the names gets caught or bought in the next 12 months or so, we'll literally sing. we'll have my co-host sing. dan, thank you very much. appreciate it. a buffet of food nuts coming your way up. why hershey, the sweetest stock of all and how fast food may help solve america's obesity crisis, but before we get to

that, michelle caruso-cabrera, what's coming up -- i'm not referring to you as like a dish or anything like that. don't get mad. >> maybe i like being referred to as a dish. >> all right, you're a dish. >> on all-time high watch, brian as both dow and s&p try to close at new highs, a trio of top strategists to tell you how to put your money to work in the middle of this record rally. also an earnings extravaganza. first up, at&t, right after the bell, right after the close and then apple, the big mack daddy on what reports could be a make or break quarter on what is a struggling stock. instant numbers and analysis all straight ahead here on the "closing bell." don't move. at farmers we make you smarter about insurance,

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shares of hershey's, hitting an all-time high. stock climbed 31% over the past year. so what is driving hershey's rather sweet success. still on a sugar high, jane wells digging in for us. jane? >> brian, it's chocolate. back to you. citi giving hershey's a great big kiss adding them to their top picks live list. raised their targets to $150. raised second-quarter estimates ahead of thursday's earnings believing sales will grow 10% and profits 12% and we could even see smor, why? rollo, mr. goodbar and heath and a blockbuster new product would could become half a billion

dollar brand. as old as hershey is can still gain new market share. how -- citi has a buy, stop eating. channel checks so hershey is doing very well. shares are trading at a 30% premium to the package food group. both analysts expect the company to see lower prices for commodities though cocoa prices reached a one-month high and concerns about global supply. traders are concerned a black pod disease could kill off 25% of the cocoa crop in ghana. lunch. >> for two things, three things, number one, good job. number two, these dark chocolate -- hershey, great american country but the pomegranate things are manufactured in canada. remember this stuff, jane? ever see this strawberry syrup? >> of course. >> never used the strawberry syrup, yeah, when i was a kid, vanilla ice cream. >> oh, no, that's gross.

>> people wonder, like sullivan, what are you on in. >> mainlining strawberry hershey's. i can't unsee that now. ever. >> there you go. nice segue into our next segment, jane wells. how eating fast food could help fight obesity, and here's today mystery number. 13.8 billion. we'll give you a dollar if you can guess what that number means. that's a hint, not a bet no. cash bay pout. there's your mystery number. one guy already got it. he's smart. [ engine revving ]

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no food stock has been hotter than the red head's, wendy's now up 55% this year. the company posted a profit and same-store sales rose partly because of that pretzel bacon cheeseburger you saw on "power lunch" earlier. even a love song devoted to it on youtube. the ceo was on the 1:00 show talking about all that deliciousness. >> you know, this is, you know, not a one-hit wonder. we have a marketing calendar for the remainder of the year that has other product innovation in

it and next year our product pipeline is very rich and full, and we're very excited about it. >> that may be working for wendy's, but is healthy fast food the future of quick service? if people are given the option, will they go for what's healthier? one company on it, and they're growing fast. they are called life kitchen. the ceo of the retail business joins us now. steve sidwell, welcome to "street signs." we had a story yesterday about calorie counts not swaying people, and, in fact, some people ate meals that were over 1,000 calories even when knowing that on a big board. how do you get people to eat healthy, steve? >> well, i think -- thanks, brian. i think it's all about taste. if we can create products that taste amazing, that are good for you, that are affordable, convenient, accessible to most americans, we think there's a big demand out there. and it's all about taste. >> you asked, though, mcdonald's employer, workers, executives,

whatever, the maclean they tried to come out with years ago, you know, a little bit of a healthier burger, it failed miserably. what did they say? >> well, i think that the times are different. there's a lot more awareness about the importance of eating well today. and, you know, our success -- our early success is clearly demonstrating that the consumer likes our brand, and, you know, as long as it tastes great, that's the key thing. and we find this over and over again, both in our restaurant as well as our grocery items. >> we have been taught to believe that lower calorie necessarily means healthier, steve. we hear that all the time. a lot of low-calorie food has thousands of other ingredients in it. how do you guys define healthy? >> yeah, that's a great question. we want to be calorie responsible. we want to be sodium responsible. all natural. and, you know, really where we're getting our flavor is from herbs and spices, quality

ingredients. we limit the amount of sodium and fat and calories in our restaurants and our grocery products to 600 calories and 1,000 milligrams of sodium in the restaurant and only 500 milligrams of sodium in our grocery products. so we believe it's important to be responsible in those areas. >> steve sidwell, lyfe kitchen, thank you for coming on "street signs." >> thank you, brian. appreciate it. all right. can junk -- here's an interesting thesis, folks, can junk food actually help us end the obesity epidemic? a provocative headline talking about just that and joining us now is david friedman who wrote that article. i get "the atlantic." i get the article, and i thought, what the heck is this? you made out an interesting case. make it for our viewers. >> i appreciate you saying that, thank you. frankly, i think the position is just absolutely -- it's indefensible to say otherwise. we're stuck with junk food.

this is what most obese people eat. this is what much of america eats. we need to make it healthier. i think it's really silly to just say to people, eat vegetables and fruit. i mean, it's great. i hope they do. but the fact of the matter is, we got junk food. let's make it better. >> how do we make it better for us, though? i mean, you just heard the argument, david, people don't want it! the calorie counts don't matter. everybody that goes in to most fast-food places knows that no matter what the ads say, it won't be good for them, but still they go. >> it's true. and i think that'll change. but i think it'll take maybe one, two, three decades for that to change. in the meantime, there's a lot we can do. we can actually take foods -- the big-food companies know how to do this, food scientists know how to take food that delivers all of the sensations of the junk j food that people love and make it healthier. lower the calories, lower the fat, lower the sugar so people are eating healthier food, but they're still eating the food they choose. you can make a healthier big mac, a healthier shake, a

healthy coke. >> and i love what lyfe kitchen is doing, but you need scale. you have to get the healthier options on every corner, like the unhealthy options. that's kind of what i read into your piece. and the only ones that can do that are the ones that currently exist and have that scale. >> i think so. i mean, look, i think what lyfe kitchen is doing is great. i think right now what's happening is the same thing when mcdonald's offers a salad. they're just picking off a segment of the market that already has understood they have to eat healthier food. that's not really where the problem lies. the problem lies with people who don't yet understand or don't yet have the will power or resources to make these kinds of switches. we have to help those people -- let them keep buying the same kind of foods they're buying now, but let's have those foods be healthier. >> david friedman, a good discussion. a better article, as well. i encourage everybody to go back and read it. david, i know you were on a few weeks ago, we had to postpone it. thank you for coming back on. appreciate it.

>> all right. thank you. up next, a $13 billion return on an investment that really only costs $1. we'll explain coming up. [ male announcer ] i've seen incredible things. 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.

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♪ it kind of is about the money. time to reveal the story behind today's mystery number, which is $13.8 billion. that odd number, my friend, is how much one study says america could save over 30 years if we switched from dollar bills to

dollar coins. citizens against government waste report goes on to say $1 note is cheaper to make than a coin, but it lasts only four years on average compared to 30 years or more for a coin. the study was commissioned by senator john mccain, who is pushing a bill to phase out dollar bills. remember, though, the susan b. anthony failure? what about the dollar? $1.5 billion bucks of those coins as we speak are sitting in the u.s. mint, because, a, everybody confused the anthonys for quarters and got ticked off and the other ones too beautiful. with a purse, struggling, weighing you down. it is street talk time. we'll slam you solo to five stock stories of the day. they're all analyst recommendations. pnc bank, downgraded to a neutral.

they're citing expectations for moderating earnings growth in 2014 and 2015. target remains 80 bucks. so they see not quite the upside. the analyst rating overwait. baric gold, upgraded. they know to reduce risk and share weakness. the target was up. the reason i'm ticked. herb greenberg, the new bet about gold miners versus coffee. gdx is doing well. texas instruments, five firms raising estimates or targets, wells, goldman, ubs, pacific crest, all five believe the stock has steady growth. that is expected to continue. pe 21 dividend yields, and isis pharmaceuticals, cut to underweight from piper jaffray. they think the recent successes do not justify the current valuation. and let's hit on stock five, a new name to the market, coty, four firms initiating coverage of the beauty products company.

piper overweights it. (unintelligible) -- jpmorgan chase. there we go. we got all five to go with ten seconds to spare. see what the strawberry syrup does? huh? don't do it at home, kids. thank you for watching. have a great day. "closing bell" is next. hi, and welcome to the "closing bell." i'm michelle cabrera at the new york stock exchange. maria bartiromo is back tomorrow. >> and, michelle, tyler mathisen at cnbc global headquarters. bill griffeth also will be back in the chair at this hour tomorrow. we've got a busy show for you these next two hours. wall street and much of the investing world awaiting apple's earnings. those due out after the bell. and the stock continues to languish. down about 20% so far this year. the overall stock market is up by roughly that much. and we have one analyst here who predicts apple will deliver