indices because of apple. 2.89% and moving. >> if you look at the heat map of the number of s&p 500 stocks in the red today, it's probably 350 out of the 500. that will do it for this edition of "power lunch." >> "street signs" begins right now. don't just do something, sit there. that seems to be the market's theme as sernerves run high. we'll tell you why that may be the wrong thing to do for the man who called this recent downturn. is google now too big to fail? should it get smaller? we'll delate it and tell but something that google right do that you might find rather creepy. plus, why the turmoil in egypt has not caused oil to spike yet and three very cool videos from the world of sports

that you just have to see. >> good to have you back on the show. let's look at what the markets are up to. today may have the dubious honor of marking the first four-day losing streak of the year for the dow and s&p 500. the last time that they pulled a four-day clunker was the last week of december. also, august has really brought about a reversal of the trend we've seen this year with the u.s. now the worst developed market month to date according to howard at s&p. let's get to the trading floors and find out more. bob pisani at nyse and rick santelli at the cme. is volume likely to finally pick up? >> no, it's not. normally i can't stand market indifference and light volume. today i'm fairly happy because the yields moving up to 2.9% and we're heading towards 3% on the yields. normally that's a big problem for the market. when it started doing that, i said, oh-oh, we're going to have

a problem today. wrong. the stock market by and large, the dow has been in a 60-point range. normally they would move about 125 points. while we were hitting lows briefly, really didn't move too much in any direction one way or another. there we saw the move to the downside on the lows but a bounce back fairly quickly. i think that indifference a fairly good sign at least in the short term. interest rate sensitive stocks still on the downside. utilities ugly last week, reits were ugly, telecom stocks were ugly and those are the groups getting hit. finally the bank stocks. they're having trouble today as well. >> those pesky interest rates which reminds me, let's get to rick santelli. you know, we're watching those ten-year yields at the high nest over two years. i think the real headline here is the fact that since the beginning of may, the ten-year yield is up about 123 basis points. i believe that is the biggest jump we have seen in 17 years. >> yeah. it's amazing. we were in the 160s in may, but maybe even more amazing, we're

at 65 basis points in a five-year note which, by the way, is now trading at 161. why is that important? that was its spike high yield the day after the fourth which equated to our 2.74% in tens which we blew through last week. i think many were in a trance. the trance was broken by the fed itself talking about the taper. once the trance is broken, the magic is gone. i think the treasury market is normalizing and i think it's a powerful move. >> the dow seems to be on a slow drip lower. your next guest warned "uss this mig -- us this might be coming. >> i think there's more correction ahead. this is a market that's been stimulated by the fed, by liquidity. it's not backed by fundamentals. >> let's bring that man in. he's a friend of the show. he's the head of his own firm.

all right, you think there's more correction coming. but how much and when? >> well, i think i said to you several weeks ago, brian, in answer to your question i'm looking for about a 15% to 20% correction from that point. we have since had some of it, and i think we have more to go. so i think overall i wouldn't be surprised to see the market drop under the 10%. what you want to look for a comparison is february 4th, 1994. that was the day when alan greenspan, chairman of the fed, unexpectedly raised interest rates and once the fed starts to tighten, it's not a one-shot move. it took the interest rates substantially higher during the one year that followed it, and it savaged the fixed income market during the rest of 1994, caused the mexican debt crisis. fed is a very powerful weapon. so my expectation is we are just beginning. this is not the end. >> i hear you.

and '94 was a powerful year with volatile sharp moves. however, isn't there a big difference between a taper, the pulling down of the stimulus, and a tightening? '94 was a tightening year. interest rates went up. nobody is suggesting interest rates are going to go up this time. >> no, i'm not saying that either, brian. what i am saying is if a taper involves reduction of bond purchases from $85 billion a month to let's say $75 billion a month, anything smaller would just -- wouldn't make sense. you have to lower it by at least $10 billion. the market starts to expect 75 to go to 65 and down to 50 and so on. the reason why tapering is a worry and why i think it's similar to february 1994, brian, is that even though they are reducing bond purchases rather than raising interest rates, it gives you the expectation, the fear of the next step to follow, and you know that that is going

to be further reduction in bond purchases and there is not going to be any easing taking place. what's going to be eventually is a hike in interest rates. that's why it's frightening. it is the expectation. it's the anticipation rather than just the reduction in the purchase itself. >> and if my memory serves me correct here, the last time you were on when you were predicting a correction in the equity markets, you were also saying because of your bearish view of the global economy, you expected that by the end of the year we're going to see bond yields lower than where they are now. are you sticking with that? >> i am sticking with my expectation of lower bond yields. i think it's a matter of sequence, mandy. i think i still see the ten-year going toward the 2% mark. the global economy is slowing in my expectation. the problems that we have in emerging markets are not going to go away in the next three to six months. the chinese economy is slowing. the european debt situation in my mind is not resolved, and the slowing of the global economy argues for lower bond yields.

and finally, and here is the unknown, if the fed were to be frightened by the developments that are taking place in the last couple weeks and if tapering were to be postponed to october or early 2014, that also brings down the debt yields so there are lots of forces making for a change in the future. >> okay. if we're talking globally here, it's all relative, right? the cleanest or dirtiest sheet in the laundry basket. this month to date the u.s. is the laggard, we're starting to see some of the laggards lead like the emerging markets. where would you put your money now in the world. if everyone is slowing, where is it not as bad? >> in terms of the overall spectrum of assets, i would agree with you. this is the cleanest shirt in the basket. i think the u.s. equities, now that they have corrected, there are areas of u.s. equities which i think still look attractive. utilities, high dividend-yielding stocks, reits are a good place to go in. i think housing is going to

continue to remain good, positive for another year and a half, two years, if not longer. i have been a big propon eent o europe in distress. now there's a lot of degrees in emerging markets. provided you have a good manager, you want to be in distressed fixed income investments looking ahead for the next five years. >> where in housing? like the home builders, actually buying homes, stuffing money into the laundry basket? >> in terms of where it is, i think the house prices are going to go up, and i would say house prices and reits would be the two areas within housing that i'm looking for, and i think even though mortgage rates have become significantly higher in the last two months, i still see the market going up for at least a year before there is a correction. and the last point in answer to mandy's question is that we talked, mandy, about what happens to gold price, and i think in the answer to your

timely question, i told you $1,300 was when i switched over from being a bear to a bull. >> you were contrarian when everyone was bearish and now you're being vindicated, right? >> and now i think we are in for a greater run. so the answer to your question is those would be the various asset classes which should be doing well for the foreseeable feature. >> got it. >> out on a limb but concise. we're going to bring you back on anytime, my friend. thank you very much. >> by the way, where is he? that's a live picture but it was completely dark. >> he e-mailed me when i was on vacation. i think he's in boston. >> is it really that black and stormy out there? >> are you in boston? >> i am in boston and it's actually quite sunny outside, brian. so that is not influencing my forecast. >> you need a new studio. thank you very much. if you're listening on the radio, it's like he's in a dark room literally. on deck, is google too big to fail? we'll talk about whether the company is becoming dangerously

large. plus, it's like something outside of "blade runner." will google glass start charging when you look at stuff. later on courtney reagan will tell us why one size no longer fits all in retail and, of course, we always love you joining the conversation as well. you can tweet us @cn @streetsignscnbc. don't be a twitter kill joy. you know you love it. you know you love it. >> no, i don't. ♪

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welcome back to "street signs." i'm dominick chu. watching shares of cliffs natural resources. they're the worst performer today on a heels of a morgan stanley report. analysts think that weaker pricing power, more supply coming to market and cost controls could work against the company. those shares, clf, down about 4% to 5% in trading today. mandy, brian, back to you. >> because it's your first day back after being on vacation, i don't want to ruin your sunshine. so i'm not going to mention the unmentionable. >> what is the unmentionable? that that stock happens to be on my stock team? >> exactly. >> by the way, cliffs natural, because i sensed you going there because you mastered the anchor nod because i saw you do this,

the stock is up 5% over the past three months. >> you just killed my sunshine. >> there you go. happy ipo birthday, google. on this day in 2014 goggle went public pricing at 84 bucks a share. return a 900%. i'll never forget the day. i was on the train. one-third of the train was popping champagne bottles, the other two-thirds weeping on the floor. >> did you notice an outage on friday. it sent worldwide web traffic plummeting by 40%. when i read that headline, i thought surely that can't be right. >> and it's not. this is a case where it's like 40% of the lights went out in kansas and people assume that meant 40% of the lights went out in the entire world. frts ghost squared. a small uk web analytics firm. traffic dropped by 40% to ghost

squared customer sites for those five minutes. the 8,000 or so sites that use ghost squared. sites like amazon or facebook certainly didn't drop you have nearly as much. i have put in calls to cisco and others who would have a big picture view of how the google outage affected the web. big deal? yes. 40%, not quite. i might have numbers tomorrow that are more realistic, guys. >> all right, jon. stick around because we want to bring in mike isaac from all things "d" to talk more about this as well. mike, listen, google is huge, but 90% of their revenue coming from ad cents and ad words model. android is nice, it's there. it's not making them a whole lot of money. is there a growing concern that maybe google is getting a little bit too big? >> so i think going back to jon's story, the funny thing is

40% of the internet did not go down, but it feels like that number could have been right because google is basically the internet for a lot of people right now. think about, you know, you use it for your calendar, for your g mail, you use it for your phone a lot of the time. at this point i think it's, you know, it's the infrastructure for basically most of the things that we do in our everday lives. >> not completely vanish. it's not going to fail anytime soon, but even if it's too big to fail, it's not too big to be broken up surely p lsurely. >> what the ftc and antitrust investigators doctor. >> and they've been sniffing around increasingly. the bigger it gets, the more scrutiny is gets. >> yes, definitely. and then, b, you know, you look at the other networks like facebook who is essentially trying to do the same thing that google is, which is to be the internet for a bunch of people, they want to do e-mail, they

want to do phones, too. it's the same sort of thing. >> and we often forget monopolies by itself and i'm not suggesting google has one, but monopolies are not illegal on their face. they are only illegal when you are used to prevent time or you force people to take things they don't want or you use your power to block others out. is there any sense google does that? they seem like they welcome competition. they do a lot of things altruistically. >> so i think there have been a few questions. this most recent acquisition of waze, that raised some hackles because google is the clear leader in maps. thus far they have been cleared a number of times from fdc investigations and i don't know. it's sort of anti-competitive. you can sort of view that some of the time but not legally. >> i would jump in here quickly on that. yelp has claimed that google has used its monopoly power in some

rough and tumble ways. we saw google refusing to get youtube as an app on windows phone the way microsoft would like. i mean, i think this issue isn't going to go away because you see some instances where google is throwing some elbows. >> and also if it does have an achilles' heel to what degree is google plus its achilles' heel? >> they want to shoehorn google plus into every other facet of google. but i don't particularly want that to be my identity across all of google's services. i think a lot of people already have facebook accounts. >> come on, add me to your circles. we're close. >> that's square, man. that's not my thing. you can be my facebook friend. >> i'm more triangle. >> are we going to go through all the geometric shapes here? >> yes. >> google files for a patent and i want our viewers to pay close attention. pay per gaze. basically a way to market and

bill advertisers for when you look at stuff through google glass. this is just creepy, man. >> it's crazy, right? the thing is that these patent sort of filings and patent race right now is basically on because you never know what you're going to get sued for down the line. google has to file for any sort of potential case that may come through in the future. >> but creepy, just real quick, creepy but not going to happen anytime soon. >> wait a second. i have to jump in. the thing that freaked me out about this patent is the lens on google glass as it now exists is set up so the camera can actually see your pupil dilate, not only tell what you're looking at -- >> they know when you're excited. >> how you feel about it. come on. >> that's creepy. that's creepy. >> i will concede that's creepy. >> that's in the creepy triangle for sure. mike, thank you so much for joining us. jon, thanks for your comments as well. happening now, the president is meeting with financial

regulators at the white house. john, we have the fed, of course, but what are the topic number one, two, and threes that the president and his advisers will be working on? >> it's ball the implementation of good frank. we have a stream of arrivals that have taken place. mary jo white, gary gensler and others. we also expect the federal reserve chairman ben bernanke and other members of the board of governors to be at this meeting. it's really a pep rally. the purpose of this meeting was to urge regulators who have only done about 40% of the dodd/frank regulations to finish the job. >> with the level of cooperation and coordination that's taken place among the independent regulators and the president wants to encourage them to capitalize on the momentum they have already built up to put this regulatory regime in place. >> of course, for the reason that you mention, brian, this may be one of the last meetings that ben bernanke has here as

fed chairman because, of course, the president is weighing a successor to bernanke with janet yellen and larry summers the two top candidates. >> thank you for the update. just ahead on "street signs," the latest from egypt and the impact it's having on the energy markets. plus, is the u.s. shale boom finally showing up in the u.s. economy? later on, a "street signs" hat trick. three must-see sports videos coming up right after the break. she loves a lot of the same things you do. it's what you love about her. but your erectile dysfunction - that could be a question of blood flow. cialis tadalafil for daily use helps you be ready anytime the moment's right. you can be more confident in your ability to be ready. and the same cialis is the only daily ed tablet approved to treat ed and symptoms of bph, like needing to go frequently or urgently. tell your doctor about all your medical conditions and medications, and ask if your heart is healthy enough for sexual activity. do not take cialis if you take nitrates for chest pain,

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we're monitoring very closely what is a civil war in egypt in all but name. we expected it to have an impact on the oil markets but it does not seem like it's happening. joining us is the senior geopolitical strategist at barclays. great to have you with us in person. we've often discussed that the fact that egypt is not an oil producer and always the flash point of worry was going to be the suez canal. it looks like it's not a problem. so therefore, what kind of impact, if any, is there on the oil markets. >> i think the suez is not at risk.

the big question for the oil markets is do the events in egypt spread to neighboring producing countries, countries with islamist movements that are angry about what's going on in egypt, potentially angry about gulf states supporting the military back to power. >> we look at the region, and, welcome, by the way, it's troubling what's going on there, but it all circles one country, saudi arabia. >> absolutely. >> that is where the ultimate risk will lie. how big are the outlying concerns versus what may happen there. >> you want to watch for saudi arabia. yemen is a key flash point for saudi arabia. >> look where they circle on the map, iraq, libya, all encircling the biggest oil producing nation in the world. >> you would be watching for what comes out of yemen. what's interesting for saudi arabia is when you look at egypt, they're providing a lot of money to the egyptian government. they're very happy with morsi's removal from power. that puts pressure on the

saudi's budget. they really do need north of $100 to balance their budget. so that does have an affect in terms of potentially a floor price for oil in serms of what saudi needs. >> they're not too unhappy about it staying above the $100 mark. if we could quantifying it, if you have $107 for a barrel, how much of it is a middle eastern premium right now? >> wee look at our present forecast, for example. we think it's going to be branching $106 this year. we're moving a bit ahead of it, but one of the problems with the middle east right now is we have 3 million barrels really off the market if you add iran sanctions, with outages in libya, outages in iraq. there's a bit of a fundamental reason for why we're seeing prices here. it's not just noise in terms of the middle east. the rest of the middle eastern producers are having some problems. >> we have to watch apache. i was there in egypt. apache is the bagest single western investor in egypt. a huge provider of gas.

>> absolutely. thank you for having me. turning back to the u.s. are we starting to see the real impact of the shale energy boom on the economy? joining us from ubs a drew m madison. are we starting to finally see that? >> we're starting to see it in terms of the terms of trade. so we're importing less and we're exporting more energy products. what we're missing still is kind of the investment cycle, but that has a lot to do with pricing. so we expect we'll see that later, but at least for now we've got of got an early jump start. >> how much are we not having to spend in terms of tens, maybe hundreds of billions of dollars that we would normally buy foreign oil with. what are we doing in terms of the savings from this? >> there's never savings when you talk about the u.s. consumer, right? so they're spending on other things. >> but savings in terms of what

we don't have to spend on foreign oil because we are producing so much ourselves? >> it's tens of billions of dollars at this point and it's translating to as i said about 0.4% of gdp and it's being diverted to other things. consumers are able to spend that money on housing, on clothing for their kids for back to school, et cetera. all that's coming as a result of the shale story which as brian noted we're just starting to play out now. we have a long way to go on it, and i think that as we move forward throughout the decade, you know, that half of a percentage per year we're talking about through the next five years will most likely accelerate as we move forward and while no economist likes to predict anything ten years out because you're almost guaranteed of being wrong. if it follows the same path we saw the internet follow, for example, you know, a half a percent is probably the low end estimate. >> in the twitter age, don't predict anything ten minutes out. that's my advice to you. is there a downside to the shale

gas boom? >> you know, honestly i don't see one. there are environmental concerns which are being addressed, but i think if you look at the overall het positive impact on the u.s. economy, you just spent an entire segment talking about the middle east. what if you didn't have to talk about the middle east because it didn't matter to u.s. energy depend. it just means less volatility globally. if the u.s. doesn't have to be constrained about concerns about where our energy will come from in terms of our foreign policy and our ability to produce things, that's a net positive not just for the united states but i would argue for the world as a whole. >> i have found one potential negative. it was a piece in "forbes" saying a lot of oil and gas companies have spent hundreds of millions of dollars on acreage and drilling to the point where they found so much gas, for example, last year that the gas price cratered making some of these fields unprofitable. is that a situation which is poe

tegesly going to be a problem going forward? >> well, they will be unprofitable for a while but obviously prices will adjust. some of those people will back out of the market and realize they overspent. the market will correct itself and you will get a price that will allow the right amount of investment to take place in order to meet u.s. demooand ands time goes on global demand for some of these energy products. >> drew, always a pleasure to have you on the program. thanks again. see you soon. "street talk" is on deck. why clothes, cruises, and chips are moving today's market. >> plus a four-star fund manager giving his top three picks in just two minutes. "street signs" is back after this quick break. what you wear to bed is your business. so, if you're sleeping in your contact lenses, ask about the air optix® contacts

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i am calling this the back in the saddle street. glad to have you back in the saddle. it's good, everybody. it's great. first up, let's take a look at what's going on with intel because this company is getting an upgrade at piper jaffray to a neutral rating. >> target go he is -- goes to $22 from $20. >> pcs are not going away anytime soon. they're slowing but they're not

dead. they will see a modest corporate refresh cycle. that 12--year-old dell on your desk might get upgraded soon. >> electronic arts. >> the reason we bring it to you is because earlier today it was up and it hit its highest level precrisis. who sis video games are dead? >> i went to a game stop over the weekend. not because i am a gamer but one of my sons is. looking forward to madden nfl 25 coming up very son. >> sons, is that what you call them now? >> check out the retail boost at ross stores. >> morgan stanley upgrading to an overweight. they say the off-price retailers set to benefit from weakness in the midtier. people are going to trade back down to ross stores. that stock is up 0.8%. it's up 20% year-to-date. >> let's take a look at what's happening with norwegian cruise

lines. got an upgrade but it doesn't seem to be flowing through positively to the stock today. >> stocks is down 0.4%. ub s upgrading the name to at buy. they said earnings expected to nearly double. they're expanding capacity, more ships, more rooms. and they're going to drive unit growth in yields. in other words, more ships, newer, you can charge more. >> also very interesting to any and i don't know the answer to this, but how much it's potentially benefitted from all the carnival problems. let's take a look at what this one is doing. this is our under the radar stock. we have one for you every day. today it is edwards group. it's actually an adr. >> it's a british industrial technology firm. it's soaring because it was caught out by sweden's atlas copco. the deal is worth $10.50 a share. if you own edwards group, congratulations. >> okay. our next guest says that you may know the products and services from his three stock picks, but,

and here is the but, you may not know the companies behind them. let's get some names from brian. he's four star portfolio manager of the chase midcap growth fund. great to have you with us. wheel out those names and give us the first one we should know about. >> sure, mandy. thanks for having me. first of those is jarden corp. not many people know the name but virtually everybody knows their brand. they range from coleman outdoor products to crock pot to bicycle playing cards. they have over 100 brands, 14 of those brands have been in existence continuous use for over 100 years. it's very strong portfolio brands. that's allowed them to do well even when they're in some more difficult periods for some of those due to weather and things we saw in the second quarter. >> mass tech is the next pick. used to be an installation company for satellite tv. now they're what?

oil and gas as well? >> i'd like to say if you're on the east coast and you see a directv truck, it's not really a directv truck. it's a mastec truck. of that business is still going well but they're also into things like oil and gas pipeline and power transmission. that's been a faster growing part of the business. helped them continue to grow earnings. >> i generally like to stay away from those in-store credit cards because they just make you spend more but nonetheless, if you have one or many, every time you use it, you would have come in contact with this next company. >> yeah. alliance data system is a $10 billion company. they have several parts of their business. the private label credit cards, so they operate credit cards and hold the receivables for things like pier one, victoria secret, talbot's, and then they have

marketing division. they're able to allow the stores to get the data on you as the shopper and target marketing to you, and they do that much more efficiently than a lot of their competitors. >> thanks a lot. we appreciate your time. appreciate you coming on "street signs." see you soon. we'll keep an eye on those three names. let's take a look at what the markets are up to. a big of a negative day for the dow and s&p. the nasdaq has been keeping its head above water. we're around the lows of the day, off by 41 points at 15,039 and i think what's important about this if you're someone who watches these key technical levels, in to points' time we'll be back at the 15,000 mark. after a messy week in the equity markets last week. >> that's some good math. >> i know. a whole 40 points. i counted it up all by myself. still ahead on "street signs," a math lesson. no, a big retail roundup. why made to order is the new front line in the retail wars. plus, a big dollar store

upgrade and three things to look forward to the when jcpenney reports tomorrow. but before tomorrow comes the rest of the day. bill griffeth, what is coming up next on "the closing bell." >> plenty. welcome back. stocks in the red again. we have some top strategists standing by. we'll talk about whether it's time to get out or buy this dip. and then a very thorny issue. probably you have heard about this. the city of richmond, california, is threatening to use eminent domain to seize troubled mortgages unless banks sell them to the city at current market value. the banks say we can't do that. we'll talk exclusively to the mayor about this case which is being watched very closely by other cities hit hard by the housing collapse. maria and i look forward to seeing you at the top of the hour for that all important last hour of the trading day on "closing bell." we'll see you then. of the lexus performance vehicles, including the gs and all-new is. ♪

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i don't look like that actually. let's look at dollar general. the stock is up more than 3% on an upgrade from neutral to overweight -- i'm still distr s distressed by that picture. the price target was raised. let's bring in the analyst

making that call. matt, primary thesis behind your upgrade today? >> hey, good afternoon. yeah, so a couple things on dollar general here. number one, we think the capital allocation thesis was underappreciated by the street here. you know, they've talked about buying back stock more aggressively and making it a key part of the algorithm going forward, but the magnitude of it is $4.2 billion on our math over the next three years. so this share count reduction we think is a 3% to 5% earnings growth driver going forward. that combined with 7% square footage growth, 3% to 4% comps and flattish margins going forward, we see this as a compounding midteens earnings growth plus story, and at 15 times our price target of 64, we think it's more than reasonable. >> i think their potential repurchase equates to 20% of the float. but within the dollar store sector, is this the best? >> we now have overweight ratings on both dollar general

and dollar tree. they're both different animals. dollar general we think this capital allocation story is the next leg. dollar tree, you know, is basically more than 50% of the merchandise is actually made for them direct from overseas. so dollar tree is actually more of a sourcing story. we think that from a gross margin perspective there's a little more stability on that line and the underlying comp is more based on core traffic whereas at dollar general you kind of have that traffic and ticket combination which we think can drive the same-store sales stability. >> perhaps the most hotly debated stock in america which is actually if you can believe it jcpenney reporting tomorrow. what are you expecting? what are your keys? >> yeah. so on jcpenney, like you said, it's a stock coverage universe in itself. you know, the three hot button topics i think are, number one, same-store sales. the big question is have they

ticked positive as speculation has it in august? we're actually modeling midsingle digit comps in the third quarter moving to high single digits in the fourth quarter. so they're going to need that trajectories against the negative 25-plus comps last year. the second is gross margin. we have gross margin down 680 basis points in the second quarter here. the question is when can they achieve stabilization to start to move back to historical levels, and the third is going to be liquidity. you know, it's probably a $1.2 billion cash burn in the quarter alone. when does this bleeding stop? >> in terms of the stock, i see you have a price tag of this marginally higher than where it is now. do you think sentiment has got so rock bottom in terms of the stock price all the bad news is already priced? >> we hosted a lunch on friday with 25 top investors at jpmorgan, and i would tell you that the sentiment on the stock headed into this print is as low as it's ever been. i think it is rock bottom.

the question is what is going to be the news to stem the bleeding? i think that whether it's same-store sales in august, i still think investors are going to need more. i think the balance sheet and the fear here is are they going to need to raise more equity? are they going to need to bolster the balance sheet again? and if so i just don't know that investors are willing to step in ahead of knowing that answer for sure. >> we'll just have to wait and see. thank you very much for that. and one size no longer fits all in the retail wars. i kind of like the one size fits all. >> some people do. perhaps it's like a natural reaction. maybe it's a natural counter reaction to mass merchandise retail or maybe natural to want to be different. wa consumers want items nobody else has but for an ideal prize. that's where technology comes

in. a 3-d scanner builds an image to create the perfect personalized pattern to make customized clothing. it saves consumers more than 50% buying a perfectly tailored chute suits. victoria secret has five scanners at various locations used to define the bust shape and bra size to make a recommendation from stock, not actually for custom clothing. adidas can render different variations of the shoe and the backstory of the soccer players and those sporting the shoe. >> they have seen anywhere from 500% uplift in the london pilot to 77% in tokyo or 143% in germany. so that's a great example of a win/win where the customers are getting a more customized product. >> if you look at retailers that

are performing financially better, it's tightly aligned list with those that are adopting technology and an experienced focused way. i have seen some of this technology, it's interesting. think about people that are so into vintage clothing. they want something that nobody else has but they don't want to pay for it. >> if you want to try this, where do you do it? >> custom apparel is one of the small retailers that will do it. if you cut out the cost of paying a tailor $90, $100 an hour to make the pattern, create the suit, the ceo -- >> or buying an off the rack suit and taking it home and then having to pay to get it fixed. >> nike does these -- >> got to be huge inventory management business. you don't have to guess what people want. you will shape them up, boom, it's right there, they'll make it for you. you don't have to stock the 4xl. >> that's where the benefit is because the consume efforts get to get exactly what they want. the retailers don't have to

guess on the inventory. it saves them space, money -- >> i'm sure they keep your digital specs. and then they can e-mail you. >> that custom girdle i got a cue fierce ago, still paying dividends. it's really unbelievable. coming up next, on that note, a little tight for time. we're going to be firing up the time machine to take a look at the best performing sectors over the past five years. but what is it going to look like and who is going to take over the reins for the next five years. and the world's biggest pizza. that's all. in today's markets, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price --

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welcome back to "street signs," i'm dominic with the "market flash" on apple. according to dow jones, the company has asked hon hai to begin shipment of iphone models, according to dow jones, which suggests we could see a couple of different iphone models by as early as next month. so as you watch those apple shares trading, remember we're looking for the next evolution. this might come in the form of just pretty on a different kind of product for both the low end

and the high end customers, so we're watching the apple shares very closely. >> wow, early september. dominic, thank you very much. appreciate that. let's take a trip down memory lane, shall we? five years ago, the s&p 500 sat about 1,270 and within a few months, stocks would plunge more than 40%. so if you'd gone long back then, what would have been your best bet? in other words, if you bought stocks then, what would have been -- the answer, consumer discretionary, believe it or not, despite all of the economic pain, that sector up almost 1 % 100%, which by my math is, like, a doubling. in the past five years. >> never underestimate the power of the u.s. consumer. i will say it now and say it again. >> we said it two years ago. >> there you go. >> healthcare up 53% over the past. there are the numbers. consumer discretionary, healthcare, and the staples doing the best over the five years. so what sectors will outperform over the next five years? let's ask art and brett. art, if you had to pick one sector five years from now, best performer, what is it?

>> well, brian, i have to say healthcare in general. but biotech in particular. i think if you sort of look at the innovation that's going on, some of the pipeline that's out there, the exciting new therapies we have both in gene therapies, genes drugs, biotechnology in general. i don't think we've seen a pipeline this rich and robust in the history of the industry. so i think that the exciting transformation innovative things coming out are going to be focused on biotechnology. if you had to pick one sector tricky over the next five years i would hang my hat on that one. >> i'll follow up on that very quickly, art. there's a lot of little tiny biotech companies out there that have no pipeline, or basically have one particular product, right? and it's make-or-break for a lot of the companies. do you invest in the little companies on the hope they'll have a big-hit product, or do you invest in the large cap pharma that might buy some of the biotech companies? >> you do a combination of both. that's a great question. this is binary space. you have the emerging biotech companies that will either make

it or not, going from phase two to phase three, hopefully not have a daefrt come phase three time. there's been a big change at the fda since new regulations last summer, so more communication during the process. you want to look at this as a basket approach. balance it out. you want some of the large $80 billion gilead, amgens and mix in there the sub-500 smaller caps that will be the ten-baggers and play with the etf with 20 or 100 bets or a mutual fund, or develop your own basket. but spread out the risk such that you're not putting your eggs in one biotech company. >> what about you, brett? what's the winning sector for the next five years? >> i think technology. mandy, i want to dress the part, so i worn casual, even the one-day growth on the beard, so he look like a tech guy. >> a hip ster. >> all right. >> skinny jeans and black-rimmed glasses. >> well, you can't see the skinny jeans. sorry. but technology, because look at

what's going on with social media. i want to be buying facebooks and linkedin, they're way too expensive, but think of all of the connectivity going on and all of the distribution, the pictures online, so forth, things that are trillions of dollars of profits worldwide you'll get from the connections, like cisco and microsoft with skype. i mean, technology is the place to be, because it's just growing and growing and the profits will be huge here, but make sure you don't buy the companies that are overpriced. buy the companies, remember, the picks and shovels, and even intel with the atom chip. >> sounds like the common denominator. one is tech, and the other is biotech. thank you. coming up neck, the best thing you will see today. there's the tease. >> and the video. [ marco ] i'm a student at devry university.

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of the must-see sports videos, yankees/red sox rivalry heated up last night. dempster beans him. halfcourt shot, a kid gets free college tuition for a year. good job, ball state. next one is a held of a catch by the colts. thank you for watching "street signs." >> "closing bell" is next. hi, everybody. happy monday to you. welcome to the "closing bell," i'm marie ya bartiromo. >> this feels like a friday. if you're real good, if you're real good, maria will sing a country-western song for you, a little later. >> ooh, you just gave me up! >> now, if you were looking for a monday snapback after what was the worst week for stocks of the year last week, with an hour to go on the trading day, does not look promising now.