yield. we can pull up a chart of it, but the numbers are worth watching. the s&p 500, maybe breaking quite a good stretch of weeks in the black. there's the ten-year, 2.56. sue, have a great weekend. >> you, too, ty. see you on monday, everybody. that does it for us on "power lunch." >> and "street signs" begins right now. the week ending with a wimper as the dow drops even as the consumer picks up but get ready, folks. you won't believe everything coming your way next week. we're going to let you know what you can ignore completely and what you absolutely have to pay to. what three things you can do to raise the value of your home. wicked good ideas that probably aren't what you think from the guys of "flipping boston" and an investor brings along three stocks he thinks are

undervalued. two of the companies named i've never heard of and our ace reporters gather around the old table to bring you the most noteworthy and probably the most ridiculous headlines they saw this week. hi, everybody. national system administration appreciation day so if your computer is working, go hug the head of i.t. at your company. the dow is down right now, even as consumer sentiment comes in at a six-year high. here eat heat map, more red than green though we're well off the lows of the day. trying to sneak out a gain. a ton of stocks making big moves. we'll dig into starbucks which is soaring, a travel stock that's getting shellacked and one big mover that's making me a very happy man. we're calling this the five wise guys panel. art hogan, michael cojino, bob pisani, herb greenberg right over there and maybe it's like

four wise guys and just one guy. let's get going, gentlemen. art hogan, first off, get your reaction to the market today. >> it's interesting. you know, we've had quite a ride here on what could be characterized as, you know, average earnings, right? earnings that we're used to okay, you know, 70% of companies are beating but only 50% beating on the revenue line. what's interesting is we were able to sell this market off 6% on fears of tapering and back up to new highs and it's probably not a big surprise. probably pretty healthy. >> michael kojino, you've got expedia getting slaughtered and starbucks soaring. why all the big moves and video names. finally back to a market where oh, my gosh earnings matter. >> look at facebook yesterday. yeah, i think we are. earnings do matter, but as art has said there's declining growth in revenues.

many companies are beating on the bottom line but are providing cloudy outlooks or no earnings or poor guidance. where is the next leg up coming in? we're in the fourth year of a bull market that's been supported by the federal reserve monetary premium so how much longer will that play out? >> i hear you, you and art and herb and everybody ten times smarter than i have. you and i have had this discussion quarter after quarter after quarter. the quality of earnings is lousy, beating expectations and quarter after quarter people just don't seem to care. >> they don't care until a company comes out and says it's not working. on an amazon or netflix it really doesn't matter. but the key here is will continue to be revenues.

when we see 0.6 revenue growth, that's an issue. >> bob pisani, you're seeing institutions sell stocks and individuals get into stocks, multiple expands, and as herb and mike and art just pointed out the quality of earnings simply not that good. >> it's true that buybacks are helping the earnings so include and look at that point of view, you're right. it's a quality issue, but the fact is we're still at record high earnings on the traditional metrix that we use, number one. number two, two things that move stocks down, we saw this week, higher interest rates so concerns about higher interest rates whether it's from the fed or the market moving up and secondly, any kinds of chinese that china will go into a real slow growth cle 7%. that's a major issue. one thick i agree with herb on is it works until it doesn't work. caterpillar came out, a major

dow component and talked about slower growth throughout second half of the year. the market slowed down. a company with a big problem. they are not dropping the guidance in the third quarter as fast as some people thought. basically they are saying don't worry, things will get better. >> you and i have been speaking about the markets for probably longer than each of us want to remember, probably a decade, and it used to be if caterpillar came out and said what they said. they were a leader and things would drop more dramatically than they have been. why aren't we seeing this almost like relentless, don't want to say rational, push to the upside, but, you know, not today but the general trade. >> the general trade to the upside is because as an aggregate the numbers are better so lower expectations and if you look at the s&p 500 as a whole. any of the household names, don't do well. i think they are being punished like with expedia today. pisani didn't mention this which

is interesting, probably the first time in eight quarters that bob didn't mention there's a highlight or negative of europe. europe is getting incrementally better both out of commentary in corporate and some economic data. i think the mosaic is improving in europe and we're taking at least one of the concerns out of the way which is helping quite a bit. >> one thing i do have to point out here is the bifurcation of this market and how it treats companies. like we talked about a caterpillar. it says over the long term. it can say over the long term. nobody cares. you come back to an amazon. it says over the long term for whatever reason people want to give it a break, and i think that's this market. the ones that want to love and will love and the others that can do no good. >> it's seems like amazon is almost sort of the brazil of stocks. people are always waiting for the turn, right, guys, yeah, yeah krrks just down the road and amazon continues to struggle

in terms of its margins, if it has any margins at all and it trades at 3,300 times. >> maybe the difference is because we use amazon, the product, and most of us know they execute well. we don't sit there other than you on a caterpillar tractor every weekend in our backyards digging a hole. >> cloud computing, what's the ultimate -- you need something that makes the money up on the other side. >> michael, do you own amazon? >> we do not, for a lot of the concerns that you guys are raising and clearly from a stock performance standpoint it's been fantastic but we're had concerns about loss leaders and profit erosion and it seems like that story has been going on since the late '90s. hats off to people who invested in it but we stayed away from

it. >> when we come back, a different focus which is the federal reserve because i want to bring in our own steve liesman here. he's got brand new polling data about who might take over for fed chairman ben bernanke. is it summers? is it yellen? is it liesman? >> it's not liesman, but wall street overwhelmingly thinks president obama will and should pick janet yellen to be the next chairman of the federal reserve. these are the preliminary results of our cnbc july fed survey. it was so overwhelming. yellin 70%, the pick of president obama and summers just 25% the pick to replace current fed chairman ben bernanke. now on the question of who should obama nominate, yellen 50%, bernanke 12% and write-in candidate john taylor comes in ahead of larry summers. these are the top five categories. we asked about ten. these are the top five

categories here for what qualities a fed chairman should have, monetary policy, crisis management. you can see if you do the totals there, yellen beats summers in four of the five categories. >> wow. >> inflation concern, 3.2 is the only one where summers beats yellen by just a little bit. in fact, yellen beat summers in seven of the total ten categories we asked about. summers gets better marks on respect for international leaders and concern about inflation and financial market expertise and yellen won hands down on monetary policy exper deese and also has concern about unemployment. >> probably the primary school that a fed chairman need these days. >> brian, i should consult with you before i do the questioning, absolutely. >> i've been waiting for years.

>> let's bring the panel back in. art hogan, honestly, they are all smart people, right? do you care doing what you do with stocks? do you care who the fed chairman is? >> absolutely i care. the job of the fed chairman, you know, in the round is going to be harder than the last round because they used unusual and non-traditional monetary policy to prevent us from going into a worst crisis than we did. you have to unwind that through untraditional and unusual monetary policy which may be harder than lining it up so i think it's extremely important and i'm not surprised by the results of the survey. >> everything he said, brian, i agree with, and down here when i talk to people about yellen versus summers, most people support yellen, not out of any feminist principles. they support yellen because they think summers is a little more prickly, a little more difficult and may not be as an effective communicator hand most people do

not agree with bernanke or the easing policies kept up here, but they do want a smooth transition. >> another thing you alluded to wall street will go with the known quantity over the unknown quantity. yellen has been there and is the fed vise claire right now. >> what would michael cuggino do? if you had to vote works would you vote for? >> i don't have much of a preference for either and it transcends a broader question. i don't expect the direction of the fed to change regardless who they point or even if ben bernanke stays. monetary policy is covering for a lack of fiscal policy and i don't see any changes on that front. in fact, i see some conflict coming up on the horizon, and i think as long as we've got this duel mandate, low inflation, high unemployment, i don't see those aspects changing any time soon, so while they may taper

and buy bess bonds or whatever lever they decide to freshen up on, i don't see the exiting stage any time soon all and that's regardless of who is in charge. >> do you think they will drive stocks lower? >> i think there's a potential there and it will depend on the fiscal situation and what both sides can accomplish or lack thereof. >> thanks to all our wise men. on deck, the week that was. we bottom lined the big headlines like apple and netflix and gave you headlines you probably didn't hear. what you should. we're talk doubles, donkeys and herb doing something we never thought we would see with his glamorous posh life and later on the top three things you need to do right now if you want to keep up with the jones es, these thre

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. welcome back. i'm josh lipton. here's a quick market slash. news that david einhorn closed a bet against ailing retailer jc penney in the send quarter and also closed a long position in microsoft.

and a short bet against jcp was the most profitable short in 2012. you can see the stock right now up about 2.8%. brian, back to you. >> big news on j.c penny and lock at that stock take off. you dig into the stock a lot. this is big news for jc penney. this are those who will tell you they believe they take a look at the cash flow and debt obligation and there's still significant issues but this would be certainly something that's proactive. >> looking here at the reuters story. davidine i don't know, smart guy, but not a super aggressive guy. he's not -- listen to what einhorn is saying. the retailer was poorly positioned. shares rocketed in early 2012 based on overly hyped promises

put forth by a highly promotional ceo. smack in one sentence. >> they will have to take a look at the earnings and see what happens. >> probably somewhere sitting in a beach in sardinia smiling. >> haven't you ever been on that one? >> more of that as the show goes on. as you figured out it's been a week chocked full this week. headlines that our team did not have a chance to get on air so here's a big chance to hit some stories otherwise ignored. julia, kick it off, your biggest headline of the week and maybe a story we might have missed but shouldn't. >> well, brian, huge stock news in social media this week. facebook surprisingly strong revenue and earnings growth driven by mobile has sent the stocks soaring, look at that, about 29% higher since it

reported its earnings wednesday afternoon. now zynga is quite the opposite story. a weak outlook, disappointing numbers and news that zynga is not going to go into the lucrative real money space. its stock was sent plummeting last night and today and off 15% and what a week for netflix. it reported better than expected results monday afternoon and the stock is still declining about 6% over the course of the week on concern that the outlook wasn't so strong but the story that really flew under the radar is part of the time warner cable and battle overseas. extended the negotiation deadline until monday but lost in the attack ads is if they go dark time warner cable will recommend its new york subscribers sign up for oreo, a

change over to live tv and broadcasters are suing them because they don't get paid. while time warner works out this dispute it's suggesting an alternative that a fraction of its price and i have to say, brian, if the company says it's not concerned it seems like a big risk. >> kind of a weird and hidden strategy. julia, thank you very much. >> courtney reagan, your big story and maybe something we missed. >> the biggest regional headline of the week was presenting the royal baby. let's talk about rubber shoes. crocs have been trying to expand between the signature rubber crocs. guidance issued below expectation. crocs is playing cool spring weather, no surprise and sluggish consumer spending in the u.s., europe and japan. shares plunged 21% on that news.

now the other thing that you -- tidbit you might have missed sears selling designer duds. most consumers don't associate sears with luxury but the struggling department store wants to offer you the high end goods anyway. sears.com has marketplace where outside vendors can sell merchandise. watch for sales by bob's watches for a cool 33,999. sears makes money by collecting 7% to 20% of sales, plus a 39.99 monthly fee from the marketplace vendor. sears confirms in just three years its marketplace has grown to include more than 85 millionite else, luxury and otherwise. total sales have significantly dwindled falling further with each of the last six years. philly will bowe, your headline.

>> huge week for autos. that's the headline. i don't think we've seen a week this strong for the auto industry probably in at least 15, 20 years. look at all of the main names they beat by a wide margin. gm, ford, borgwarner. lather. take a look at lear. today they reported well above what the street was expecting bringing in 1.62 per share. the street was expecting 1.37, 1.40 and look at what's going on in the showrooms, auto sales are expected to increase for the rest of the year. we'll get the july numbers next week and the auto industry is also seeing stronger pricing, so overall it's incredible right now in north america, but the most interesting thing, brian, you've got to go over to kyrgyzstan, and you're saying where's that? it's a landlocked country in central asia because over there they built a prototype lamborghini from scrap met a. they saw some designs for a lamborghini and got some scrap metal, can't really import these cars over in kyrgyzstan, and as

a result they have made themselves a lamborghini. got to admire their initiative. doing that out of scrap metal. >> you hear a lot about the kyrgys, that's the ingenuity. >> herb, are you going to use the word dongle in this segment? >> let's leave that alone for now. >> such a weird word. big surprise in iphone sales and apple earnings coming in ahead of consensus, just over 31 million units. apple's overall revenues top 31 billion. news a bit better in the headlines and apple drew down in inventory in the corner as opposed to last year. put that next to qualcomm's quarter where smartphone chip sets did better than expected, and it seems like a lot of the pessimism that's been floating out there around the high end and mid-tier esfirm market.

we'll see google's motorola unit watch the high end moto xphone. google and its $35 chrome cap device which i refuse to call a dongle because the word is too weird. you plug it in the back of the tv and pull down lots of streaming tv video content. what's less known is the fine print which i think will be interesting going forward. at first it was google offering three months of free netflix and pulling that after today. maybe the deal is just a little too good and then there's other angles like apple. it could block chromecast from working so easily with iios software which could limit the appeal and then content owners, google svp told me after the event hollywood will have the option to hold back their content from chromecast. google is going to make that easier for them up front and if

it passes any guidance they might. >> and this would eventually turn into a hollywood movie which i will produce called "the do dongle chronicle." >> herb? >> world acceptance, 204%, first red flagged it back a year ago, 204% installment lender, a subprime installment lender. the real story, you looked at it, their charts are rising, loan losses are rising and also i think it was on tuesday, a senate committee on aging was on, and -- and basically demappeded more information on world and wanted to know more about world. that's not necessarily bad or good for world and then there's michael's story. >> the audience doesn't know you but you're worldwide famous. you're a high roller, too. you travel in the most rarified air so you did something this week that i was shocked to hear. >> when i was out in san diego surfing, which is not a shock to

hear, i was at -- when i was -- i rent different cars i was there. i decided this time to rent a chevy cruz, surprisingly, it was a peppy -- >> what do you mean? >> i wasn't expecting it. made in wardstown, ohio. >> much better than getting a nissan altima. >> oh, my good neness. >> i actually enjoyed it other than a few clunks going on like the old days of chevy, a bunch of noises in the car that were odd. >> money bags rolling around in the trunk. >> that's right. >> are you surprised? >> it's a back-handed compliment to a certain extent but i'm not surprised. hear that from a lot of people. >> it's a good car. >> good miles per gallon. >> my biggest head line of the week, forget the real stories, this is a big deal.

ino the zonkey, half zebra and half donkey. i didn't know if it was a real. this is not to be confused with a donkra which is the offspring of a female zebra and male donkey, all part. zebroid, including the zorse and the zony and as herb might say, that zebra climbed a fence to -- he was in love. that was -- you can't hold that zebra back. >> are they related to the ligers? >> they are real. >> i wouldn't a zunicorn. i think we'll give the win on that one to phil. >> i'm just worried about how smart these zonkeys are going to get now that they have a broader

gene pool. need to be worried about them. >> you'd be shocked, my friend. could be high frequency trading before you know it. >> i think they already know it. >> high frequency trading something. >> bargain hunt being, a top industrial brings along three stocks he says are way undervalued. that's later on. the late actor james gandolfini did some weird scratching of the head and a new jersey tax man might be scratching their heads. ♪ ♪ [ 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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welcome to the earnings squad. many i'm melissa lee along with herb greenberg and josh lipton. herbal life, this is your baby. >> earnings come out monday after the close. the real thing to watch i think though is going to be the earnings call. you want to listen to that tuesday morning. revenue growth, lost a big distributor in the past quarter, one of perhaps second of three big ones. you have the company changing its business model somewhat. they are coming out and trying

to clean up their act. people will be watching this, and you have the tug-of-war in washington with the federal trade commission and we're aware they haven't done anything. they have been short the stock and the congress, lobbied to do something or not do something. >> how about the shorting of the stock. has that changed anything at all? >> i've not been watching the shorting system and people think there's a squeeze. >> right. >> the stock is going up just ahead of earnings. who knows why. >> certainly been a winner for carl icahn. >> for now. >> good point. a crucial read from royal caribbean who reported yesterday better than expected earnings and they have a negative impact from the tragedies at sea reported by carnival cruise line. carnival did feel impact. we'll want to hear about the costs, of course and also whether or not the season has to

be very promotional given what happened over at carnival. >> they have a new breakaway ship. >> just ordered a new one. >> 4,200 people. you wonder when is so much capacity too much capacity? >> two breakaway ships in the pipeline, herb, so there's still a chance for you, for you to get on one of those. >> i like to cruise but the last cruise ship i was on has about 600209 hundred passengers. >> hertz global. >> yeah. >> schedule to report before the bell, 45 cents on revenue. 2.7 billion. 22% on the top line. you hear them talking about a couple broad trends, one going into a transformation after the acquisition dollar, power earnings growth and also consolidation in this industry has been tremendous. controlling 90% of the market and it's been an absolute rocket

ship. this thing up about 60% this year. >> that's it for earnings squad for today. if you want to join the conversation join us. brian, back over to you. >> melissa, thank you very much. told you herb would like that. three stocks, the next stock says are three undervalued. he's got his criteria for determining undervaluation and two names that are brand new to me, up you probably know. later on the top three cool things you can do this weekend that adds instant value to your home but not what you think. you'll want to see this, especially when you think about selling your home, coming up. ♪

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what we love to do here on "street signs" is to get smart people on. do a little work for you and save you some time so if you're in the hunt for bargain stocks here are the key metrix that our next guest says you need to consider. key metrix include free cash flow yield, everybody i know says free cash flow probably the most important thing you need to look at, return on investment capital and also the company's cost of capital. what does it cost them to raise the capital, the cost of the capital itself? let us bring in the president of it. c. capital and he has three

stocks that meet his criteria. welcome, great to see you here. two of the names new to me. tell me about tech resources, teck. >> it's a company that discovers copper and iron ore, iron ore primarily. that's responsible for about 60% plus of their free cash flow. >> i want to snicker when you mention copper. >> also mentioned the introduction as the cost of capital. a very important metric. probably represents the last frontier of security analysis. any risk to the perspective free cash flows must be taken into account in the cost of capital whether it's sales stability, copper, cost of sales stability, tax holidays, someone living, loss of a patent, litigation, anything you can come up, how it impacts future cash flows should

be accounted for in capital and in copper the risks, what would a good analyst do? if you have properly set a cost of capital you're fine. i'll give you a great example. >> let's go and play it into that, if you would. another new name. sounds like a battle star galactica character. domtar corporation. >> the complete opposite of that. domtar has been a very consistent company. when you look at the cost of capital and this is also interesting, you would think that the cost of capital, the risk of the cash flows would be very high. for example, the cost of capital for the s&p industrials as a whole is about 8.1%, yet because the credit quality of domtar is strong, it actually has a slightly lower cost of capital than the s&p industrials, and they have a tremendous amount of

flexibility, domtar does. this year, for example, they have about 2 billion in capital spending. they are reducing it by 200 million this year and two years ago down to 900 million so this company has an enormous amount of cash flexibility in which they can improve an important metric that i look at and that's the cash upon cash return. how much cash are they taking in in terms of real cash flow and, unfortunately, a lot of people that come on this channel don't measure free cash flow directly. don't make the property adjustment and misclassification adjustments that need to be made that we do and when you do it with domtar and tech and you normalize everything, you're fine with these companies and they offer amazing value. you buy companies that are cheap and you exercise patience. that's what equity investing is about. >> i hear we've got to go and i hear you. we are on television. time is tight so these are all starting points for people to do their own security valuation and

analysis. a little action on the weekend never hurt anybody. >> the other company was broadcom and that's a very interesting company because the stock was downgraded this week. >> you'll come on soon to talk more about broadcom. >> teck, broadcom and domtar corporation. a good lesson. >> thanks very much. next, how the feds might nail tony soprano after all and a good old-fashioned fight over betting and the "boston flipping" guys here with three wicked cool ways to add value to your home this weekend. they are not hard, but first, what's next on the "closing bell," bill griffin in. >> let's tell you, amazon shares rallying even after disappointing earning but it's time to take profits because this stock looks very expensive. also find out if it's time to finally like facebook as it creeps closer to the magical $38 ipo price finally and traders not just betting on stocks. they are also betting on who is

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the feds couldn't touch tony soprano until now that's because before james gandolfini died last month the 51-year-old star may have made a crucial mistake in his will and half the actor's multi-million dollar estate could be going to the tax man. robert frank is here with more on that story. >> it's a really interesting story i think because of who it is. the good news here is that james gandolfini left a very detailed will to his son. he left clothing, his jewelry, rights to buy his apartment in new york city and a parking space that's actually worth a lot of money here in manhattan. left his assistant $200 now, his nieces got $200,000 each and his house in italy he left, 50% to his son and 50% to his daughter, but he also may have left too much to the tax man. a noted trust to the state's attorney calls this a tax disaster, and here's why. the rest of his estate gandolfini left 20% to his wife and 80% to his sisters and

daughter. that 80% will likely be subject to the estate tax, that's, of course, about half of everything over 5.25 million. now if he had given everything to his wife, it would have been shielded from the tax because of the unlimited tax fee transfers to spouses. now we don't know the value of his estate, and the attorneys say that whoever drafted this, they did decline, may be other reasons not to leave it all to his wife but when it comes to the death tax best to show the love and the money to your spouse. may have been other reasons not to leave it to his wife. >> he might have done this on purpose. maybe he wanted to give a lot of money away to the government. >> and you look at leona helmsley leaving millions to her dogs. people have by czar reasons for doing things in their wills that have nothing to do with taxes. >> well said. >> constant. >> a street fight over bed sheets and bath towels, plus a bear walks into a bar.

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6 foot, 300 bear was seen walking in the back door of a bar in the colorado rockies. there were people in the bar. no one noticed or cared. they grow them hardy in the rocky mountains. that's part of rocky mountain living for you. from bears, to bed, ba bath & beyond. we've got a classic street fight on the stock for you. it was downgraded today but brian nagle from oppenheimer upgraded it yesterday. both joining us now. anthony, first to you, the stock appears to be moving on your downgrade. why the downgrade? >> well, for the most part this was based on valuation. the stock had had a really nice run. it was up about 37% year to date and outperformed the broader market indices, and we just kind of felt like upside potential and downside risks were fairly bounced d.have fundamental

concerns particularly with online competition but this is more of a valuation downgrade than a fundamental downgrade. >> brian nagle on the phone, you heard anthony's reasons, right? i'm sure you know and respect each other greatly but why is he wrong? >> i do respect anthony and we've known each other for a long time. i view as still inexpensive stock here. this is one of the best-run companies in retail. what's interesting to me, there's a look at the second quarter here, so on a february year end, so second quarter ends in august. to me, it's a key turning point, because they'll start to lap past a number of the investments they made over the last year or so. what that tells me is as we look out into the second half of the year into 2014, you'll see improving earnings growth. that's going to encourage the market to reward bed, bath & beyond a higher multiple. >> yeah, anthony, you look at some of the multiples in terms of the price to eps, make 16 1/2 times here, looking at price to enterprise value, revenue, where does it stand against the historical norms? you said valuation is the rationale for the downgrade. >> well, the stock doesn't

appear terribly expensive relative to historical norms a the end of the day, one of the things i'm concerned with is a company with midteen operating margins, that is now squarely in amazon's cross hairs. what we have found is that when that happens, generally it does not end well. this is a company that sells in the core concept almost 100% commodity products that amazon can put on their website, or and undersell them on price. there's not a lot they can do about that. to us, it's not about where is the valuation relative to historically levels. it's about, you know, is there a lot of upside potential, is it much more downside risk? i would say, no, at these levels. >> brian, talk to us about amazon.com. anthony makes the case, and we talking about it being a loss leader and undercutting everybody on price and margin. >> look, i think the amazon concern has weighed upon bed, bath & beyond stock for sometime. a number of clients, that's

their foremost concern. i'd say, first of all, the concern is priced in at these levels. but more important than that, my team and i did a pretty extensive pricing survey, a while back, six, nine months ago, and we priced products on amazon versus bad, beth & beyond. what we found, and very, very interesting, is that bed, bath & beyond prices extraordinarily well. you know, for anyone that shops at bed, bath & beyond, they use coupons aggressively. when you take into consideration the coupon, bed, bath & beyond was underpricing amazon on the selection of the products we were looking at 15%, 20%. my overall call there, is the threat of amazon is overblown. the risk of amazon to bed, bath & beyond is overblown. >> all right, guys, that's what it takes to make a market, a buyer and a seller. guy, thank you both very much. have a terrific weekend. >> thank you. >> you, too. a quick hit on jcpenney. the stock is moving higher. it was down to start the day. david einhorn, noted short seller, had been betting against

the company. it was the most profitable short of 2012. they closed out their short. in other words, they're not betting against this stock anymore. in the letter i'm reading now, david einhorn calling the ceo highly promotional, and that the promises have been overhyped. so taking a jab at the company there. it's come down off the highs of the day, still up more than 2%. is apple's white the new stainless steel when it comes to hows? we'll talk about things can you do to add value to the house. the great guys from flipping will join us. ever ybody has different investment objectives, ever ideas, goals, appetite for risk. you can't say 'one size fits all'. it doesn't. that's crazy. we're all totally different. ishares core. etf building blocks for your personalized portfolio. find out why 9 out of 10 large professional investors choose ishares for their etfs. ishares by blackrock. call 1-800-ishares for a prospectus, which includes investment objectives, risks, charges and expenses.

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[ male announcer ] talk to a state farm agent about car loans that can save you hundreds. that's borrowing better. is white the new stainless steel when it comes to what's in your kitschen? whirlpool introducing a new white finish called white ice, thus the music, to replace stainless steel appliances. could this actually be the start of a new trend that'll make your kitchen look more like an apple store, and more importantly, will investing in these kinds of trends pay off if you're selling your house? joining us is the co-owners of city light home, dave seymour, peter sularis. thank you both very much. it used to be granite countertops and stainless steel appliances. not anymore, right? it's about toys, and everyone says no one will watch tv in the future, that ain't true based on what you're seeing. >> i don't know, we're seeing a lot of different trends. i just came back from greece last night, and i'm seeing white appliances everywhere over there.

i mean, a little bit different. but i think that that could be a trend that sticks around here, definitely like you said, looking more like an apple store, you know? so we'll see how that pans out. >> yeah, until you clean it -- [ overlapping speakers ] -- right? >> -- off to the side or on the wall, why are people putting flat panels on fireplaces? isn't that going to damage the tv? >> you know what? no, everyone thinks that. as soon as they see a flat panel, a place that, an lcd above the fireplace, they're worried the heat will get to it. if a fireplace is designed right, it should not be melting anything above your fireplace, right? so that's just -- that's just, you know -- it's not true. the bottom line is when a fire -- when a fireplace has a tv above it, we see it all of the time, that the ladies love the fact that there's no wires, there's no mess, there's no clutter, and it frees up a lot of real estate in your living area. you know, your living room.

the guys love it, because, i have a tv above the fireplace. so that's a very hot, bragging right, we call it, that we basically use all the time. >> but you're not done, right? so you have the tv by the fireplace. you have the fire going in the fireplace. you gotta have a little wine. to complete the picture. you have to have a wine fridge, you need wine. right? that's number two. >> there you go. that's number two. here's the secret way that brian that for us to sell houses as fast as we do, whether you're a homeowner waiting to sell a house or investors like us, selling fast in the marketplace, every one of the design features have an impact. and the impact is emotional. whether it's that fireplace sunday afternoon ball game, whether it's the husband and wife cuddling in front of the fireplace, or whether it's that wine cooler that pops in the kitchen -- >> we create the stories. >> -- it's an emotional buy. remember that. selling a home is emotional for the buyers. it's numbers for us as investors, but we create an emotional environment for them to say, yeah, this is the one i want.

>> so if something like a wine cooler that you're talking about, brian -- >> no, not a -- no, no, no boones farps, we're talking about the actual thing. now, we're not done. you watch the tv show, you have the wine going, things are heating up. put in a little maybe sketches of spain by miles davis on the sounds system. >> there you go. >> there you go. >> now we're dancing in the kitchen. >> there you go. and today, everyone has a smartphone. everyone has an app, a radio station attached to it, or whatever type of songs that you like, and if you put just a basic home, you know, sound system in there, a little cradle, wireless, you plug it in, punch in what you want to hear, you have the whole package. >> the tv, the wine cooler. >> are you talking about -- you talking about the sonos, because i've done -- i've gerry rigged one up with apple express. a lot cheaper. >> exactly. you can do -- there's so many systems out there. you don't have to break the bank. i mean, you can get anything from, you know, $1,000 all the way up to $20,000. we're talking -- the price point

we're playing in when we're selling homes, we're always doing the basics, the fundamentals, and then the homeowner can add to that if they want. so you want a system that's expandible. so lay down the foundation, give them the concept, and they can add to it later. >> guys, you a sum stuff. great tips. thank you very much. we'll see you soon. take care. >> thanks for having us. >> have a great weekend. "closing bell" starts right now. hi, everybody, happy friday to you. welcome to the "closing bell." coming to outside the new york stock exchange for our summer on the street series. things inside heating up after being down about 140 points earlier today, bill. >> yeah. gorgeous day out there, i know, maria. and inside, getting a little better. the outlook, the dow was down about 140 points at its low. we're well off those lows right now. and all of this as -- i mean,