nasdaq has now turned negative, off almost 1.25 points. winners this another, ajilent, foster wheeler on the list. that about does it. >> i'm the zen master. >> yes, you are, my dear. >> sue, see you back here in an hour or so. thanks for watching. that's if for "power lunch." >> and "street signs" begins now. one day after the fed, is it still all systems go for stocks and your money, or is it time to take a bit of a breather? we have got some eye-popping market stats that will have you really amazing paem eople at cocktail parties and gold's pig move. real estate staying hot. plus, will itunes new radio slam pandora and its investors? and champagne wishes and maybe even caviar dream because

sotheby's getting ready to auction that only previously the kings of europe could dream of. michelle caruso-cabrera with us today. >> stocks drifting a bit lower after yesterday's fed-inspired rally. if we did manage a push to the upside, it would be the 12th gain in 13 sessions for the s&p 500. and the s&p remains on track for its best month in nearly two years. a fed-fueled buying spree still evident in the gold market. metal having its biggest one-day rally in 4 1/2 years. take a look at that. a gain of $55.50. let's get right to the trading there are, bob pisani and rick santelli. >> the question on everyone's mind is where's the rally? we start off strongly after yesterday. people were expecting follow-through. we really haven't seen it. traders have given me comments. let me share three or four of them about why we're not getting a rally. yesterday there was also a lot

of short covering going on that wouldn't necessarily flow into today. number two, stocks have been down all day as rates have been going up. the ten-year, that obviously is the big mover. stocks have pen overbought, too. we see that in indicators that are pretty clear. finally, and i think this is the simple and profound truth that the economy is in great shape, the fed woo tapered. it doesn't necessarily mean you should go out and buy global industrials, for example. if you take a look at what sectors are been moving, the answer is you're not getting a lot of movement out of sectors that are in the cyclical area. so industrials, energy, financial, materials, none of them are particularly doing anything today. and again, you take a look at that ten-year, as it's been moving up throughout the day, the stock market has been struggling. michelle, back to you. >> yeah, let's talk more about that ten-year, bob, thanks so much. down to rick santelli. is that a good explanation of what's going on here, rick? >> i think bob nailed it, but i think you could drive a truck through the definition of an economy in good shape. and i think the spread between an me in crisis and the current economy, that's good enough

shape. is it ever going to be perfect? michelle, how many people do you know that say hey, we got married but we're not going to have kids till we really get our financial house in order. if that was true on every level, there would be no kids born ever. i look at interest rates now at $2.75. we closed at 69. we're up a half dozen. yesterday for all the big talk p about this huge move, made everybody's year, we have a half dozen of that back. and remember, over the fourth of july, the ten-year jumped 25 basis points. so we continue to monitor the notion that after all of yesterday, the markets really don't seem a whole lot different than they did before the surprise. >> yeah, i mean, we're a long way away from that 1.5% that we used to talk about way back when had, rick. thank you. >> absolutely true. thank you. we all know that stocks have been strong all year, but just how strong may literally make your brain explode? i even shocked myself with these market stats. listen to some of these. 144 companies in the s&p 500 are

more than 50% above their 52-week low, many have more than doubled off them. only six stocks -- six -- out of 500 are within 5% or less of their 52-week low. and most amazingly, as of about an hour ago when i last checked, only 39 s&p 500 companies are down for the year. dominic chu, these are some heady stats. are they big red flags on their own, however? >> well, they could be red flags or they could at least be yellow ones, rate, brian? stocks have been in a holding pattern so far. one of the big reasons why has to do with momentum. something bob pisani mentioned earlier. traders are wondering if the rally has gone too far too fast. this is the third time this year that the s&p has hit a near-term peak. the other times back in august and back in may. now, each of those other two times stocks have pulled back. a common element between all of these three occurrences is that the reached a statistical level that indicate a pullback could

be coming at some point. it could be do you, in other words. that upside momentum may actually be exhausting right now. now, that momentum has to do with something we are also looking at, which is how many stocks are hitting fresh highs, 52-week ones. we've got 126 of them right now, brian. 52-week highs in the s&p 500. that's a lot of stocks with momentum. some traders, though, look at this as a contrarian indicator. during the market peak in august, we saw 123 new highs before the pullback in stocks for the s&p. during the market peak in may, we saw 187 of them before the eventual pullback. so that's the real issue. no one really has the crystal ball, so to speak, but traders are looking for those caution flags. and they've seen some of them in repeat history, guys. >> all right, dom, thank you very much. so is this a giant red flag, yellow flag, whatever for the market? all right. jim cramer is with us here. also michael and steven. jim, let's get to you first because history is nice, but if you read history, the british never lost a war until we came

along. history not always right. what's your take on all these really heady market stats? >> i think there are a lot of company that shouldn't be on this list. i think a lot of companies that are domestically oriented, we now hope if you're in those that the federal reserve's talkdown of rates can help you. but those companies shouldn't be. the companies that should be doing well are the companies that are doing international because china could be coming become. europe getting better and stocks look forward, not back. i mean, i think therz a bunch of stocks that are probably way that high and a bunch of other stocks that can still go higher. this market is very bifurcated. and in terms of the actual economy, but it's not bifurcated enough when it come it the stocks. >> is this maybe a result, too, of the proliferation of etfs? >> i think so. >> people are just in their willy-nilly. >> you don't care if garbage co had shouldn't be anywhere up. >> and priceline. >> the futures all go up yesterday. con agra, pepsico, general mills goes up. then futures drop back for a

second. now we realize we really don't like those stocks right now because we're not going to have a recession. we stel them back off. the upward wave of the futures is so -- it's overwhelming. it's like just a riptide. >> correlation moves to one. >> correlation. >> right. >> when you hear that's managers on, a lot of these guys say, well, i like the market. that mean they actually like the market. i don't like certain housing companies here. but that's too granular for these guys. we didn't used to have that. people would say, well, i like these stocks. i like the market here. what are you boying? the market. that means they're boying everything. >> and the problem with etfs is if we click buy, and everything goes up, how easy is it just to hit sell as well and everything goes down? >> well, i think that what could happen hear is that we'll get to the quarters. remember, we're almost at where the quarters are. a lot of stks bought the market because we thought the fed had made it so that they stay

easing. it turns out they didn't have good quarters. that's what drives the stock, earnings. so the etfs play a role all but four days a year. >> mike, i dare you to say you're buying the market. stla excuse me? >> i dare you to say you're buying the market. >> we are not buying the market. we're buying certain segments of the market like jim said. we do like the global growth story long term. we think that stocks are reasonably priced generally. they're not cheap like they were, you know, six months, year, two years ago, four years ago. but depending on where you cut earnings, thoey're reasonable. and for a long-term investor, there's still potentially growth there if you buy into the worldwide growth story. we like cyclicals, energy, financial services and some biotechs as well. yeah, there's some great companies in those industry. >> i think i totally agree with that. i think that's exactly right. those are very important sectors. put take a look. lincoln financial prudential. and people don't want the insurers. they were based on higher rates,

but it look like we're not going to get higher rate. travelers runs a very good book of business. their business is good. people buy that stock, not betting on what the fed is going to do, but who runs the company. the individual companies that are doing well are going higher. a lot of other companies are going higher. >> are you overworried? are we coming off this really deep bottom back in 2009? and so we're going to get these natural sort of statistics about "x" and "y" over "z" and whatever it might be? >> yeah, absolutely, i do think you're probably overworried. a lot of the rhetoric i've been hearing in the press today, it sounds like the market's down a couple percent. guys, we have a reset going on here in this rate environment that the fed has set. and i think the one group that's losing a tremendous amount of momentum and it's impressive the market's holding up as well as they are, the financials. regional banks off almost 4% since the announcement because just as talking about the insurers, these fwois were loving the higher interest rate environment that was getting set

up for them. one thing that a lot of the viewers need to understand is we've got options exploration tomorrow. this is a big quarterly expiration. we also have a large s&p rebalance going on tomorrow. so there's a lot of put resetting going on in the market which is kind of holding us back. couple that with we've got a couple of big hawks on deck tomorrow. both lone decenter george and the minneapolis president. there's headwinds in the market towards the end of the week. the one wild card overnight, brian, will be bank of japan. kuroda's going to be speaking. he's going to be talking about what the fed just did. >> he's just listed a big wall of worry there. one thing after the other after the other. >> he also, i think, i was wrong nicer than anybody on the show. >> it was a great compliment that you're wrong. look, when i say the stock that are up and i think -- a lot of agreement here, but when i say the stocks are up that shouldn't be, i think two week from now, jim, could you come out because we're going it talk about the shutdown in the government, because you come out because i think that the quarter are going to be bad.

i just am traying it front-run that because that's what bernanke was trying to do. >> so many people, oh, the breadth is great. that's a go ahead sign. and the minute the breadth shrink, they think it's a bad sign and the market rolls over. >> i think there are certain sectors you want to do well, the transports because that's commerce, but those are, again -- >> will traffic pick up? >> what i said at the very bow beginning, the international growth story is very much game on. and that's not fed related. >> we're going to continue. mike and dave. i know jim's got to go prep for "mad money." >> i've got pier 1. they missed for the first quarter in a long time. tally, it's a great sort of shop. they missed. what does that say? >> igt, international gaming technologies. >> yes. you know, there's a place -- a casino opens every other day in this country. >> i notice you mentioned lincoln field. >> that is why i mentioned. >> before you go, you made a pig, big call, very good call on airlines a long time ago. it's been spectacularly right. >> right. >> axl, new multiyear highs

again today. trimming out? in? >> i think -- i hate to punt, but if the usairway dole goes through, then that group could go up another 50%, and i don't know. >> you prep for four hours for a show. people think tv's easy, but it's not. >> he doesn't sleep. >> up at 4:00 a.m. >> now you're just bragging. >> how about the 12:00 a.m. tweet about picking up josh gordon from the cleveland brown. >> he's the one that's been stalking. jim has to go. jim has to go. but you keep talking. >> final comment. you know david, what's the best investment play right now for each of your money. 20 seconds each. mike. >> we would stay diversified. precious metals i think have room to go as do stock. you've got to know when to get out of stock. as long as the fed's involved, we think they will be for a while. we think they confirm it yesterday. and i would hold some shorter-duration, high-quality bonds for recession or economic slowdown protection. >> dave? >> yeah, brian, i would tell you, you know, he's dead right as far as the materials are concerned. i'd be looking at gold also

especially if we're worried about a government shutdown coming, when that happened gold jumped 15% in two weeks. on top of that watch the consumer stocks. there's still a big short out in the consumer. look at the xly, the discretionary etf. we've got gasoline prices dropping, rail traffic specifically we also have intermodal traffic increasing. so that's boding very well into the end of the year when people are pretty short to consumer. >> i like it, gold is the hedge against the dodos in d.c. realtors everywhere should be buying ben bernanke a beer if he drinks. we've got a panel of housing all-stars to tell us what will happen next. later, priceline wins the race to 1,000, but why? does anyone really get why that stock continues it crush it? we'll debate it coming up.

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it was just the opposite. let's get to diana olick to explain why. diana. >> reporter: yeah, it was the same reason, different outcome. the realtor say it was those higher mortgage rates that pushed buyers off the fence and into a house. existing home sales up 1.7% month to month in august to 5.48 million units. that's the highest in six years. higher than during the homebuyer tax credit. remember, six years ago was just before we started to hear that word "subprime." now, realtors say they expect

sales to drop from here. why? well, fewer distressed homes for sale, down to just 12% of sales in august, the lowest since they bow gan tra began tracking this. 17% of buyers and they had been far higher. and first-time homebuyers, realtors say that segment has collapsed. just 28% of buyers this august. they should be up in the 40 % range. what's holding them out? tight credit. rates are, of course, falling again. they had been up around 4.8% in the past few weeks. they dropped dramatically after bernanke tabled the taper. rates today, depends on your lender, but 4.25% is once again a viable rate, but you would have to likely pay points. the range now is 4.37% to 4.5% in general if you want to point and you're a good credit risk with a large down payment. costs might be higher for the rate and all of this is from "mortgage news daily." what about rates going forward?

don't expect them to fall much more dramatically. don't expect them to rise much more dramatically. experts say they should stay right about where they are for now. but again, it could depend on more economic news like the jobs report coming up in a couple of weeks. back to you. >> helpful to have a job when purchasing a home. diana olick, thank you. with the fed's decision to maintain the bond-buying program, aka no taper, should we expect even better housing data going forward? we have got a real estate roundtable with dom peoples, after that intro, the segment's over. kidding. if i'm a homebuyer and home prices go up 3% to 5% a year, do i care if mortgage rates rise 1%? >> no, not at all. no, you don't. >> that's where i believe the housing doomsayres have been lacking. >> i look at this. i think that rates increasing will push people into buying. also, we have a shrinking inventory. we already have a depressed

inventory to bow giegin with, nl new inventory comingen line. it's going to propel people to buy even more. >> is that your experience, too? we see rates start to rise like we did. everybody seems to rush to try to beat it, and everybody else who didn't get in seems it stop for a while. and then if they don't move heyer, they finally get back in? >> the bigger picture is rates are still very low compared to historical standards. 4.5%, 4.8%, 4.2%. remember last decade, it was around 6%. and 7% to 9% in the decade before that. prices also look undervalued relative to fundamentals. take that together for someone planning to stay put for seven years, it's still 35% cheaper to buy than to rent. now, that varies across the country. that gap is as narrow as 4%. 4% cheaper to buy than to rent in the san jose area. it's 65% cheaper to buy than to rent in the detroit area. but wherever you are in the country in the largest metros, it still look cheaper to buy

than to rent. and it will look like that until rates get much, much higher. >> why did that hammer the housing stocks yesterday in. >> you've got to think about it this way. i agree fundamentally. tight inventory levels, low interest rates. it's a perfect setup for the home builders. >> yes. >> but the problem is, expectations have superseded where fundamentals are at. and so we think the big upswing is not going to be on unit volume growth of existing home sales or new home sales. that's actually going to have a slower growth rate. we're looking for big movement in price. so price issing it to be what we're looking for to continue accelerating with case schiller. >> you're talking about new home sales. newly built homes. >> i'm looking at new home sales, existing home sales. >> x price as well. >> and i'm looking at price as being the big factor which price appreciation is going to be the story for 2014. >> and don, i know you're a big south florida guy, right? okay. and miami epitomized the collapse for so long. but just got data today, the miami home sales market is up in

price 21 months in a row. >> and it will keep going. >> you believe so? >> absolutely because the inventory faucet was turned off completely. no new construction from 2008 to really 2012. and then things started happening in 2012 in the beginning. and you have a global market just like new york city. >> brazil yianbrazilian, chin n. >> now what you have is a global market, europeans, asians are all buying in miami. is and, of course, then once they absorb the inexpensive inventory, then the new yorkers, the midwesterners, they come in and start buying as well. >> and they're cash buyers. >> absolutely. and also, what's going to be good for our u.s. market is as prices increase, which i believe they're going to continue to increase, it frees people up. it takes the handcuffs off of those who own existing homes so they can sell and trade up. and we haven't really seen that

market yet where boyers are going to trade up because they've been so handicapped because they've been under water. now that's going to free up and we're going to price increasing significantly for the rest of 2013 and 2014, going to be a banner year in pricing. >> do you agree with that? because if you do, it's going to be all three of you. and it makes me nervous when all three of you say prices are going to skyrocket. >> the first thing is we're actually starting it see inventory slowly expanding. when you look at the nar series, did a proper seasonal adjustment. >> national association of realtors. >> thank you. inventory's been expanding for seven months slightly. inventory bottomed at the beginning of this year. already some people have decided that prices have risen enough that it's time to start putting their homes on the market. now, it's not been a big enough change for buyers to notice, but the numbers are there. but the bigger issue, much bigger than mortgage rates, is why construction is still so low. >> ask bob. >> sales levels are close to normal. prices are now very close to normal. but construction starts are at

40% below their normal level. two things are going on. first of all, vacancy rates are still high. even though inventory is tight, there are a lot of vacant homes still left off the market. the first thing. the second is household formation is still very, very low. it's about three quarters of a million homes being formed a year. as opposed to usually over 1 million. >> and that's weak economy doing that. >> and that's young people with had aren't back to work. instead they're living with their parents. >> and apparently aren't doing anything else. >> and the single most -- >> due to that lack of household form aation formation. >> they're playing video games. >> the housing recovery is going to be how quickly young people get back to work. >> answer that, bob. >> it dovestale dovetails with said, right? pricing in >> when i look at jed's data, a seattle market where there's 1 1/2 months of inventory, not much better in some other areas, when historical average is four it six months -- >> four to six months on average. and what don's talking about, what i'm talking about is very

attractive gateway markets, international capital going to new york, miami, southern california, london. gateway markets are going to do great. but secondary markets are also picking up. it's not an even recovery. it's a mixed recovery. household formation is low. vacancy rate is still high. but when you're thinking two to three years out, is the recovery on track? yes. the question is, stocks have anticipated a super robust recovery. we have a sluggish economy. weak job market. that's why the fed's not putting rates back up. and that's the problem. >> the move yesterday doesn't dissuade you at all? >> it provides a path for the current trajectory we're on. so we're not looking for a huge ramp in housing, but we're not going to derail the recovery. >> quickly, don, the dodos as d.c., and it's both parties, this debt ceiling fight is getting really nasty and is looking dangerous. could this scuttle everything we've just talked about?

>> no, almost every year since the debt ceiling has become an issue. i think we're in our third year of obama's fight with this debt ceiling and the republicans using the debt ceiling for another agenda. i think the market understands it now. they understand the political gamesmanship that takes place in washington, d.c. and i don't think that's going to derail it. >> does the american population get it as well? >> they do. they do. same old song. >> here we go again. >> you let them fight it out and we continue to go about our life. >> sadly, politics as usual now. >> thank you all very much. great discussion. >> thank you. still ahead, one hedge fund giant says you've got to love gold right now. is he right, though? and then later, the boozy skies. new study shows just how much we drink when we fly. hopefully not when we're flying the actual plane. and here's a trivia question. flights between which two cities sell the most booze on board? tweet us your answer @streetsignscnbc. i love having a free checked bag

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you've got to love gold here. as a money manager and as a wealthy person who deals in markets, this is great for me. i don't think it's great for america, but i'll tell you what it is great for. it's great for gold. and on an intermediate base, it's great for risk assets. >> that was hedge fund giant stan druckenmiller. he was all about gold this morning. metal having its biggest spike since 2009. let's get to sharon epperson at the nymex. sharon. >> michelle, that certainly was a huge spike after the fed announcement yesterday. we did see gold price rally more than 50 bucks, and gold has held on to those gains, ebs tended them a little in today's session as well. keep in mind, we are looking at gains of more than 4% for gold, more than 8% at one point for silver and gains for copper and the platinum group of metals as well. but there's something else it consider hear. you have to remember how the gold future market trades. and it closes at 1:30 p.m. in terms of the floor session. that's really what the closing price is based on.

the fed decision came at 2:00, and then we saw gold continue to rally after that. but the etfs gives you a eter indicati better indication of what happened it gold today because they really price off of what has happened in today's session. and there really hasn't pen that much action. that's why you're looking at those etfs basically flat on the session today. back to you guys. >> sharon, thank you very much. your next guest says the gold rally actually making him more bearish on gold than ever. let us bring in frank mcgee, alliance financial's head of precious metals trading. and frank, we've got a chart that i think you've probably seen. maybe you sent it to us. what the it is is the price of versus qe. if you're lacking at it or listening on the radio, qe1 pop, then fall. then it climbed again. operation twist. but the last qe didn't work. is this a short-term fed reaction pop in an otherwise secular down trend for gold?

>> absolutely. if you take a look at where the precious metals were prior to this, i mean, there's absolutely no basis to say that the market misjudged in this price what the fed's action was yesterday. but prior to this, had we had been coming off, we had the flush down to below the 1200 level. we had run back up. every time you get talk of qe, you get this surge of volume back in that ultimately fades. to me, what that says is that at some point, whether it's tomorrow, next week, next month, tapering is going to start. once tapering truly does start taking hold, you've already seen where the market wants to go. and i'm still, as i was on the show last time, thinking this we haven't seen the lows yet. >> even if the taper doesn't start, it seems to me you've got how many central banks in the world printing money, right? there's the bank of england, japan like crazy, and the u.s. is still going at it. and if that hasn't been enough to make gold go crazy, what's

ever going to do it? >> well, that's really part of the point. i mean, i've been a bull and have been on the long side of this market for the last ten years. the last 18 months or so, it's been very, very difficult for me to want to see a logical reason for the market to continue its rally. even with the continuation of money. chairman bernanke has really been worried about the deflationary side of things. and there is no true inflation other than for monetary inflation sitting out there. even if crude oil over 100 buck. at the end of the day, if you see the economy starting to continue to slug forward and start it pick up, the fed has to start exiting. they can't exit all at once. they have it do it over a period of time. that will change sentiment. the underlying sentiment here is ultimately for this market to come back down to the 1100, 1,000 range and then see where we go. it can be a bumpy side, but i

think we're ultimately heading back down. >> frank, it was a real pleasure. thank you. >> always. priceline becomes the first stock in the s&p 500 to ever hit 1,000 bucks a share. we've just got one question, don't we, michelle? why? >> are you suggesting it's too high a flyer? >> flyer, i get it. travel pun. and later, have you checked out itunes radio yet? brian has. he's very impressed. does it have what it takes to be a pandora killer? next. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind...

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it is "straeet talk" time where we walk you through some of the stock stories of the day. if we're going to walk through this, does that make you street walkers and in the street talkers? >> it can be both. i'll be a walker today. stla first up, groupon. >> what a name, right? first off, it got an upgrade. tweet buy from a hold. get this, the stock's already up 158% year to date.

accelerating fwroet here as well as stability in some of the european markets, has become a leader in mobile commerce, accounting for half of transactions in northern america. this was a $2.60 stock back in november. what a run! >> okay. time warner upgraded morgan stanley to overweight from equal weight. what say you? >> well, the stock's moving up 2% right now. morgan stanley sees room for growth. after the time inc. emerging television growth, expand profit margins, they raised estimates. price target is now 72 which is about 7 and change above where the stock is trading as we walk. >> 42% in a year. all right. tesla hitting yet another new all-time hey. does anything stop this thing? >> i don't know. this stock has blown away any expectations. >> it's amazing. >> it's unbelievable. this is the best day for tesla since august 8th. it is now a 428% year to date. i know this off twitter will get

all hot and bother. the market cap is now $20 billion. it now values the company at effectively $1 million per expected cars sold. the cars, michelle, sold for $75,000. if you sell 25,000, it's a 1 million valuation per car! >> yeah, but over how many years? >> listen. it's a tech company. it's a genius. the cars are spectacular. i don't know. the stock is just -- >> i know. it's a ig momentum player. rite-aid reported unexpected second quarter profit, this thing he back from the dead. >> i was shocked that we even found this name. i was, like, rite-aid in they're still around? surprised the market. stronger profit margins. same-store sales only rose 1%, but pharmacy sales are up 1.7%. the street was happy, as you noted, this was a stock literally left for dead. at one point yielding 11%. get this, rite-aid's up 227% year to date. i think they're saying thank you, obamacare.

they got a huge push, them, walgreens and others saying we'll explain obamacare. come in and we'll help you out and by the way, buy some shampoo on the way out. >> more prescriptions as well. >> that's it for "street talk." tune in to this ahead. i have tried out the new apple i tunes radio. and i'm wondering if it should make pandora very, very nervous. we're going to debate it ahead. husband, there's a reason they're called the friendly skies. can you name the city that sees the booziest flights? tweet us @streetsignscnbc. first, though, bill griffeth? >> why are you coming to me now after you mentioned that? is there a synergy there? i have no idea. that would be my answer. we've got huge interviews lined up for you on "closing bell." first dell, then apple, now carl icahn has a gnaw target, but it's not just one company. he will join us exclusively to explain. and billionaire investor warren buffett and bank of america ceo brian moynihan sit

down with our own becky quick talk about everything from the fed's decision not to taper to how regulation is affecting wall street. that and a whole lot more when we look forward to seeing you at the top of the hour for that all-important last hour of the trading day. we'll see you on "closing bell" coming up. stay tuned. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ from td ameritrade. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle...

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take a look at the airline ind index. it is at its highest level since 2007. the index up more than 5% this week. airlines, i guess, michelle, when you can charge 700 bucks for a one-way flight to cincinnati -- >> it's amazing, isn't it? capacity constrained. what's the first thing you buy when you board a flight? food or booze? we know the answer. and you're not alone. phil lebeau is here. phil. >> and michelle, we have data that was compiled by guest logics, a canadian firm that process in-flight purchases, more than $1 billion worth of transaction. here's what they found in the first half of the year in north america. overwhelmingly had people are buying on board, they're boying beverages, predominantly alcohol-related. 38% spend their money on food and 4% is for what they call comfort items. things like headphones or if you

want to change your seat or in-flight movie or live tv. now, the fastest growth of all of these areas while beverage has the biggest chunk, the fastest growth does come from those passenger comfort items, up 19%. purchase overall on north american flights, what people are buying in flight, it hit a record high during the first half in part because people are buying more on those longer flights. >> the other thing is, what we're seeing is that on flights, again, back to that magic duration number of around 2 1/2 hours, we're seeing more and manager folks actually open up a tab on board and to open up a tab, of course, having a credit card is, you know, is essential for the airlines to make sure that they can close the tab and get payment at end of flight. >> absolutely. go cashless, open up the tab and let the drinks flow. here are the three most profitable flights for the airline industry. number three, from minneapolis to fort myers, on average, those flights take in about $145 in

drink sales. number two, the runner-up for most profitable, this is in surprise. from seattle, orlando, back to seattle, $154.08, on average for tring sales. but the number one flight, when you might call the party plane, detroit to las vegas. that route, $179.12, average. that's the answer to your trivia question. in terms of the number one moneymaking flight. and this didn't surprise people we talked it when we asked them about it at the airport. >> i was on a flight to vegas just recently last week. there was a lot of people, you know, getting it going early. >> doesn't surprise me at all. >> ever been on one of those flights to vegas? >> i've been to vegas. one time i even got married over there. >> you know, i have family in las vegas, brian and michelle. i can attest it the fact that those flights to vegas, especially late on a friday night, it's a party plane. >> the guy got married? one time i got married there. >> it happen. >> i guess to that guy.

you know, and also the boozy scandinavians coming from minneapolis. they can drink, you betcha. you better believe it, they'll drink. chardonnay. >> good stuff, phil. thank you. >> you bet. coming up next, our booze fest continues. why vintage champagne prices are bubbling up at auction. and did apple just declare game over on the streaming music wars, is pandora in a box of trouble? a box of trouble? pandora. ♪

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we want to let you know that secretary of state john kerry is going to host a short briefing at 3:00, top of the hour, about ten minutes from now on syria. we will carry that live hear on cnbc. oncebriefing from secretary of state, john kerry, referencing syria. priceline, winning the race to $1,000. crossing that line for the first time yesterday. now, it's down about 0.5% today. but 1,000 bucks per share? what gives? joining us from jmp securities is ronald josie. good to have you here. you've got a price target of 1100 buck. you obviously think this is justified, but convince us. >> sure. it's a couple things. and first and foremost, it's the growth and the way the company

is operating and executing. but aside from that, just on a valuation perspective, trading at 19 times next year's earnings, 21 times is our rice target, i still think there's a lot of room to go from a valuation perspective. >> what if there's a slowdown in the u.s. economy or it's not as robust robust like bernanke said yesterday? or we see another downturn in europe? is there enough secular movement online away from travel agents, et cetera, for them to overcome that? or are they at risk? >> michelle, we've come through and i would argue we're still not there in terms of an overall macro recovery both domestically and certainly in europe. what's interesting, europe is doing what it's doing. i can't say it's improving much. in 2q priceline actually grew international booking by 44%. the majority of that coming from pretty much europe and their booking.com subsidiary. i think that shows there's a lot more room to go here from them taking shares secularly. >> william shatner, i thought, was a brilliant move way back

when. the skepticism you have about 1,000 bucks a share, tdoes it kind of give a silliness to the stock? because the ads were so silly and he's so silly and we just associate it with this goofy guy? >> so i'll tell you, michelle. it's funny. $1,000 might seem like an interesting sort of target to go over. it certainly is. but if you do -- you pull up the 10 or 12 year chart on the stock. it was actually $1,000 back in the early 2000s, late '90s when it first came out. we're now back to that level if you were a long term holder. that's what's fascinating. regardless of how goofy it is, not to mention what william shatner has done with the brand, they've stuck with him for a number of years. he's a big spokesperson for what's going on here in the states. i want to continue to emphasize, priceline is more than just a domestic business. in fact, it's primarily an international business. what he's done here has certainly helped. >> ron, thank you so much. are you convinced, brian? >> fair to note, though, we got

on to pandora. priceline as 51 million shares outstanding. very low flow. >> they're in the s&p 500. >> be careful. they can sell more stock. we can get a headline any night it's going to dilute the shares. can pandora radio survive itune's new radio built into ios 7? stocks got momentum going into itune's radio yesterday. up 13% the past week. up almost 200% year to date. it's a new ball game now. from lazard capital markets. i up grated to ios 7 last night. tried all kinds of new stations. i thought, man, bpandora is in trouble. i'm a paying subscriber of pandora. >> most people listen to pandora free. i have a neutral rating on the stock. let's leave the stock aside for a second. look, i think what's happening is that there's this transition of people from traditional radio to other forms of listening to music including pandora,

including apple i ftunes radio. there's 200 million people that listen to traditional radio two hours a day on average. that's going to change over time. provide more listeners to all this stuff. itune radio is going to do great. apple is marketing power house. features that are nice compared to pandora. i think there's room for both. i do think if you're buying pandora stock you should think about that. the stock has really had a run. it's kind of expensive. >> it has. my concern it's not just both. you've got spotfy. mug. songza. google. all these other players. you wonder with pandora and with the run it's had, you know, are they just fwoigoing to get eate even a little bit? maybe a quarter of their listeners move to itune radio. what would that mean? >> a quarter could move somewhere. you add another quarter the next ten years. there's this movement toward other ways of listening to music. look at spotify. a very niche audience wants to

pay for spotify. big audience is free ad based radio which is where pandora is playing. look, i think you've got a stock that has had -- benefited from big up tick in consumer usage. there's a big new player coming at them. they've witt stood a lot of competition. they've done well when clear channel has come out. they came in not as the incumbent. it was launched, cast before them. rhapsody. they've dominated the market. 77% share. they have this investment in this music genome project, coding for a play list, that i think gives you a great experience. it's why people have tended to go to them. the game is changing i think with apple coming in. it's something i'd worry about a little bit. >> with a $4.5 billion market cap this company could be easily digestible for amazon. >> one of the issues there is music rights fees are such that if there was a takeover, i'm not sure it would work from the licensing agreement that pandora has versus what the other companies have. you know, with time that could

be sorted out. it's possible pandora could go from a government mandated rate that they use right now that every broadcaster can use to a direct deal. they just raised a bunch of money. that might help them get there. over time there might be options for them. you know, it's a great service. but, you know, 500 pe on adjusted eps, i'm not sure you have to chase the stock right here, right now. >> barton, appreciate your insight. neutral on the stock. thank you so much. up next, the biggest party foul ever. >> biggest party foul? >> foul. f-o-u-l. not bird. [ tires screech ]

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sfwlnchts we're calling this the world's biggest party foul. shot through a chain link fence. big truck of what appears to be hundreds of battles of french champagne. flipping over on a connecticut highway yesterday. spilling hundreds of gallons of expensive champagne all over the road. the driver of the truck thankfully was not injured. by the way, one case can cost upwards of 500 bucks. it is not known whether hedge fund managers jumped over their mansion walls and began licking the roads. i heard it may be true. >> speaking of champagne, vintage publy prices are apparently popping at auction. robert frank is here i'm sure with more. >> this is is my favorite asset bubble. auctioning off six bottles of champagne. 199 years old.

$5,000 per bottle. bottles of 1914 moet. part of a larger sale by southeby's. champagne is very sensitive to light and temperature. what does a bottle of 200-year-old champagne taste like? they say the bubbles are less aggressive. but their wine chief tasted it and pronounced it superlative. she said it had, quote, opulence and velvet curtain. don't you love wine talk? vintage champagne is soaring in value with rising wealth. the most expensive bottle of champagne ever sold was this bottle. found in a ship wreck. not a truck wreck. 170 years old. sold for $43,000. >> $7,000 per glass, basically. >> $7,000 per class. >> does champagne get better with age like wine? is it different? the carbonation has got to change the properties. >> this is the big question that

i had. it was explained to me it's different. the bubbles get less aggressive. it's not as fizzy. but much bigger flavors, rounder, deeper, richer. for true connoisseurs, they like the older stuff. >> i like soda stream champagne. has to be fresh. >> great story. >> thank you, america, for watching "street signs." >> "closing bell," next. hi, everybody. we enter the final stretch. good afternoon. welcome to "closing bell." i'm maria bartiromo at the new york stock exchange. it is the day after. the enthusiasm from yesterday not following through. >> there is a lot of shock going on on wall street. i'm bill griffith. dow and s&p started the morning at all time highs due to the fed continuing the party yesterday to the shock of most people. but not all people. >> not us. >> whether they finish -- whether we