why is marine one ten times the price? throw a couple of missiles on that thing an we're set. >> that is the question. beautiful one like i just showed there. >> sen yours. >> mine's always being used. thanks for watching "street signs," everybody. >> "closing bell" is next. hi, everybody, and welcome to the "closing bell." i'm kelly evans down here ot the new york stock exchange. bill, are you back at headquarters? >> we're doing radio right now. i'm back at hq at the moment. we're watching this market, which early on we were in all-time high territory for the dow jones industrial arch. but we he have since pull back rather dramatically just in the last half-hour or so. the dow at its peak was up 118 points. or thereabouts. now you see, we have just turned negative, kelly, here as we head

into this final hour. we are starting to see some selling intensify here. we have to figure out what's going on here. >> the s&p, to give people a sense of the broad market gauge, that's down by .25%. the nasdaq is off by .5%. the typical correlations having been falling into place. >> a lousy 30-year auction today which sent yields skyrocketing. the 10 and 30. but that took its toll early on. we got to figure this out what this selling is about. we are tracking two stocks that are nowhere near their all-time highs. tesla getting crushed today off almost 11% off earnings that were reported giving investors a reason to hit the brakes on this momentum stock. stabilizing a little bit today, it is up .5%. remember it lost 20% of its market cap yesterday. someone coming up on the program who says whole foods is still an incredible brand and the stock

is a buy right now. >> bull and bear time on whole foods coming up. break-up, breserkshire hathaway. warren buffett says no way. but it would unlock billions of dollars in shareholder value and release an avalanche of dividends. things we all love in this market right now. he will make the case that some shareholders in omaha were making to warren buffett himself last week at their annual shareholders meeting. >> that will be a fascinating discussion. heading into the final hour of the markets, we've just turned negative. dow is off five points after being above its previous records earlier in the day. we were up almost 100 points. the nasdaq is off .5%. that index down to 4,044. let's get to the "closing bell" exchange.

our blue ribbon panel today. rick, what's going on. i know why you won't know why the stock market is selling but do you think that the yields -- the skyrocketing of yields following that bad 30-year auction could be taking a toll right now? >> i think initially there's no doubt that the equity traders and all traders observed that very weak d-minus 30-year auction. if you look at the chart, it shot up about six basis points and it is relatively unchanged now. if you look at a bigger look on a chart going back to june, not very great shapes there. foreign exchange markets give us some clues. mario draghi tried to talk down the euro and for the most part he was successful but only in a limited fashion. worry's only -- we're only at a one-week low. the dollar/yen. it is teetering. you said you don't know what's

going on with stocks? i don't know anybody can explain what happened last year in stocks but i think what's happening this year is pretty easy to explain. i think all these dislocations and central bank meddling is catching up with everything. in europe you have relatively low interest rates. their currency's strong. in the u.s. you have relatively high interest rates and the currency is weak. it is very difficult for the men and women of central banks to keep all these moving parts in order and i think eventually that takes a toll on the psyche of gloebl invebal investors. >> we haven't actually talked about the yen that much, though aig made the point that the weak yen earlier in the first quarter hurt its earnings. but in the second kwaer the yen has rebounded. does that have anything to do with the selling action today? >> from my perspective, the fx vol has been pretty interesting. but in terms of equity vol, it's been a little bit less interesting even as we talk

about the beta switch. earlier in the day i would have said we are finally getting momentum names back into play and now it seems like we're going back defensive again. equity vol has not really been telling me too much on the macro. it's still been single name focus and -- >> that's a great point. we've been talking about how we want a stock picker's market. we are getting it here. nobody seems very happy. >> greg, jyesterday janet yelle didn't get a whole lot of action. i will point out typically lately the your oand u.s. stock market have tracked pretty well to there was a divergence earlier, now starting to see them move in line. what are you hearing from various central bank leaders right now? >> janet yellen didn't give us a lot new but the new stuff she gave us tended to be kind of bea bearish on the economy. she's very worried about housing. the zero quarter won't be

repeated but we won't get the rebound of growth for the rest of the year that the fed and a whole bunch of other people are looking for. that explains why the bond market rallied yesterday and why it gave up very little of it today. frankly the smashg has been going in the opposite direction of the dollar/euro rate and the bond market. i'm actually not surprised to see it break down here. >> though at the same time, dennis gartman, if this is the relief rally with regard to what's happening in russia an ukraine, certainly not much of one. >> not much of one at all. it is very discouraging to me, the fact that we tried to rally this morning and we failed very badly today, i would say predicated upon what's happened to the euro. the euro had an unbelievable trading session this morning for very few minutes after draghi began to talk. we traded very close to 140. within 15 minutes there afterwe traded at 1.39 given. now we're 1.3850.

that's an outside reversal as technicians would look at it. couple that with the fact that the market has been, as i've said, bifurcated. we've seen blue chips strong and underlying market weak. this is not a healthy circumstance prevailing here. >> one thing about the euro before we move on. isn't this what the european central bank wanted because they've had some board members talking about how maybe $1.40 is too strong. this is frankly without mario draghi having to do anything. is this for the right reasons or the wrong reasons here? is the point that it is sinking for the wrong reasons? >> i think it is sinking for the absolute right reasons. i think mr. draghi has listened to the new prime minister of france who has been outspokenly worried about the strength of the euro and i think draghi has heard from people outside the ecb explaining that we need to see a much weaker euro. i think that's what happened today and i think it's weakened

for exactly the right reason. >> jim lowell, this is not the first time the market has moved into record territory, then backed away late in the session here. what's the message here for you from this market? are we just getting tired or what's going on? >> well, we just came through earnings reporting season. could you put a fork in it. there was no new news. we are still on a slow-growth, not no-growth track. i agree with greg that janet yell didn't yellen's comments on the housing recovery had an effect. i don't think she just tossed the expected growth in the second quarter was just tossed out. if the momentum stocks continue to weaken and blue chip stocks continue to be the source where investors are finding not just return value long term but current difficult den yievidend

so be it. from a long-term investor's perspective, i think we're going to go into continued volatility but i think the direction is net positive. >> what's the message from the u.s. dollar here then? this is what i don't understand. if the euro is sinking for the right reasons, shouldn't that be supportive of all the action we should be see in the european stock market and here in the u.s.? >> i think when you have central bank management, answering that question is nearly impossible. i will go a step farther. i think they've managed to assuage, manipulate, whatever word you want to use, some of these interest rates so low. take the italian 10-year, for example. the t italian 10-year versus the bond tuck $1.50 this year. from an interest rate differential, the weak interest rate side of much of europe doesn't dovetail with the currency. what i'm getting at, the european central bank would like

the euro lower but i think based on the faux rate, it is going to fight that. i think the same is true in the u.s. we'll see the dollar weaken, in europe the euro strengthen just in response to some of the manipulations that the fror are inexchange markets can't wrap their arms around. i think you are getting a truer trade on fx than on the fixed income in europe. >> folks, got to go on this point. never enough time. appreciate your comments and insights on today's market action. 50 minutes left in the trading session. the dow now down 15, the lows of the session. selling just continues here as we go into the final hour. this is the kind of action we saw february when we get that rally in the morning, then it would just fade into the afternoon. that's happening today. >> bill, you made the point we've turned the calendar to may. we'll see how much that has to do with the action from here. i feel ripped off at whole

foods. >> i really want her to have the best that she can have so organic is the way to go. >> i had problem in my stomach before. when i start to buy here, the problem gone. >> is whole foods stock broken with its business model or is the latest big dip recently just a great buying opportunity? stick around. we'll have a full-on whole foods -- yes -- food fight. plus, how scared should western union be about getting big-footed by a walmart? the retail giant beefing up its new money transfer service which is right on western union's turf. western union's ceo gives us his take. another batch of market moving after the bell earnings. how those numbers could impact wall street and your investments. cbs news corp. symantec.

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welcome back. looks like they're stabilizing a little bit here. the dow was sinking as we came on the air here with "closing bell," down 15 points a moment ago, now up seven. we are starting to see a

turnaround. nasdaq down .5% or 23 points. s&p is still down five points. we are watching tesla which is sharply lower on that disappointing outlook that it provided yesterday despite the better than expected results that it announced. as you see, tesla, one of the high-flyers of last year, today down another 11%, now at $178. now at 29 transactions per second, western union has the ability to move money almost instantly from all of its customers. gl in a day an age where instantaneous results are becoming more the norm, the competition to stay ahead of the global money transfer marketplace is fierce. and now even walmart wants to enter their turf. for more on their plans to stay ahead with us now in a cnbc exclusive, we welcome the ceo of western union. good to see you. thank you for joining us. >> hello. >> is that keeping you up nights that walmart will enter the money transfer business? >> that's nothing new for us.

i think they've been in the money transfer business all the time. they were offering competing products. but western union has in the u.s. 46,000 locations. worldwide 500,000 locations. we do 29 transactions a second. people really trust us. they want to transfer money. we can drop money anywhere worldwide in 200 countries. i'm not so concerned about that. >> all the same, to transfer $50 now will cost people only $4.50 at walmart and $5 with you guys. that's a problem, isn't it? >> bidding war now? >> well, i don't think so. i think the people really like our convenience. they trust us. they trust our brand. not many companies like us can drop money in 121 currencies in minutes worldwide. that's what we do actually. our expertise is when the money crosses borders, crosses currencies, western union benefit comes, our assets come.

we are very confident we have the right price. last quarter our u.s. domestic money transfer business grew. our business had total 9% transactions growth. i think i am very confident we have the right price positioning here. >> is your message to us today, as you sit here an talk about the strategy with wall street, is yo -- walmart, bring it on, we don't care, it won't change any strategy as far as we are concerned. >> i think we are always adapting our strategy. we are always having a competition. what i'm saying is there is nothing new. our big strategy is we are going digital. our fastest growing part is connecting the dij cal world with the retail world. we grew last quarter on the digital 45% in our revenues, 55% on our transactions. it is already a big part of our business going digital and connecting also the digital world with the retail world.

>> that's where -- what's interesting is that -- now i can move money with my friends and do it all the time with an app called venmo. it doesn't appear to have a cost. >> it does. money transfer costs -- what we are doing is that we are really collecting the funds here in new york and dropping somewhere in vietnam, somewhere in turkey, somewhere in chile and -- in moments. i think that's convenience. nobody can beat that. that in 200 countries. i think really as you can see, the consumer response. transactions are growing. the consumer trust us. i think we are very, very well positioned. >> when i talk to people about bitcoin, the number one thing they say is ultimately what it is not going to do is not supplant the banking industry, it will supplant western union. what's your response to this kind of pressure from a bitcoin that can could exactly the kind

of function you are describing without, again, in some cases, any cost. >> we heard that stroer. since i became the ceo the last four years i heard that story already serl times. it was the mobile phone companies. then it was digital companies. it was bitcoins. but western union always growing transactions and we are very well positioned. our digital business is growing very well. it's grew 55% in transactions. i'm very confident that we are leading the market here, that customers are using us. >> i'm going to sound like i'm picking on you, but you mentioned you've been the ceo of the company for four years. i happened to look at a longer term chart of your company's stock. for those four years, you've been going sideways, even though you have a pretty healthy dividend. your yield is 3% which is very rich in today's market. how -- does wall street have it wrong or what do you have to do

to get your stock price moving again here? >> i think we have the right strategy, bill. we are really -- as i said, we are diversifying our portfolio. we have the right strategy. what we are done in the recent years is that the regulatory environment has been evolving very fast -- changing global regulatory environment is changing very fast. we are investing huge amount of investment in our anti-money laundering activities. about 3.5% to 4% of our revenue this year. these investments are long term competitive advantage and people trust us and use us. >> sure, they're expensive though, to your point about the impact that's had on the shares. a quick one because of the headlines right now. you guys have 20,000 locations in russia, 50,000 in ukraine. you had to suspend services during some of the sanctions that were imposed by the u.s. when will you resume those services? >> we have a very good business

in russia. we have 20,000 locations and we have 15,000 locations in ukraine. it is only 2% of our revenue in russia and 1% of our revenue in ukraine. currently we don't see any impact that customers to use us for sending money from russia to -- >> no impact at all. >> excuse me, i couldn't hear you. >> no impact at all? we've had -- >> we didn't see a big impact on our revenues. we didn't see big impact on consumer behavior. people are using us. >> okay, great, good to know. thank you, sir. really appreciate it. 40 minutes to go into the close here. the dow has been whip selling but it is up 23 points. the s&p 500 still negative along with the nasdaq, down 20. is it time to put whole foods on your shopping list or should you heed the calls from some analysts that say the best days are behind it? don't miss our whole foods food fight next. also ahead, steve leisman and larry kudlow on disturbing

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welcome back with a look at the trading session. again, it is a day where we are headed in different directions. dow is up about 27 points. it was up triple digits earlier. gave up those losses, briefly went negative. that's still where the s&p 500 and the nasdaq are sitting. so -- >> so, seema mody, what's moving

these markets? >> a lot of big movers. tiffany's, bank of america and merrill lynch upgraded from buy to neutral and raised the price target to $100 from $95 a share. it said higher domestic sales should drive market expansion. toughny up better than 2%. twitter moving higher as well as morgan stanley raised its rating from oequal weight from underweight saying the company is likely to meet financial expectations over the next few quarters. twitter twading higher by 3%. priceline reported better than expected first quarter earnings but said its second quarter results would come in shy of expectations. shares down 1.3%. another tough day for tesla. plummeting after disappointing investors with its earnings report after the bell. shares down 11%. we end with whole foods trying to rebound after getting hammered the day before on disappointing earnings. shares just up fractionally on the day. >> seema, thank you. so is this a buying opportunity if you want in on whole foods?

we have dennis berman from the "wall street journal." >> we just got a huge win by the toxic canal in brooklyn. it's beautiful. those guys do know how to sell. at least at the brooklyn store. >> you shop there? >> i do. especially my wife does. it is obviously a pretty good -- >> i just wanted to know how familiar you were with the product here. dennis, you still think there is strength in this brand, yes? >> i'm not a stock picker but i am an observer of these companies and these markets. i think we have to just ask the basic question -- is whole foods worth one-fifth less than it was two days ago? i think the answer is probably no. when you look at the brand strength and the secular trends to that type of food being purchased by more people across the country, when you look at their growth plans, they said on

the conference call they wanted to get to 1,200 stores over the next while. they're at a little over 300 now. there is a lot of growth there. no doubt pressure is on whole foods. the pressure is, is it worth 20% less than it was two days ago. i would guess probably not. >> please do point out the reasons why you don't see as much opportunity here, but also to dennis' point, 20% on a dime. why did the story change so abruptly? >> honestly, obviously it was a difficult quarter. i think it was expected. weather, well known. obviously the easter calendar shift negatively impacting comps. the bigger question is have the long-term growth expectations been permanently reset lower. i think that's the issue here. this isn't just a, this happened -- you think that's the case. let me pull this out of your notes. i thought this was pretty interesting. compound annual growth rate of 1%, not 17% like you thought. their margins effectively

shrinking over the period of the next several years. what else? there's actually a lot in here that seems to have fundamentally changed based on this quarter. >> yes. this has been a slowly rising issue. and my forecast with 17%, last year it was around 16%. when you talk at guidance of 13% i think it reflects what you've seen over the past six months. that's when you look at the older, more mature stores that are older than eight years old, which is 60% of the store base. you see those comps on average less than kroger has been posting. under kind of a 3% comp. when you look at the two to five-year age class which is another chunk of the stores, they're comping much better in the 6% range but that's still half what they were doing just 12 to 18 months prior. >> dennis, there is, and has been, a cache to whole foods about the natural foods and all the quality of the foods and all that they sell. but the thing i hear most often is that they are just so

expensive. there is a lot of competition out there. the competition has figured it out. they know that organic is a key wore for a lot of people these days and you wonder if that is a problem for whole foods right now. >> well, it is. walmart has certainly taken that effort and says it will have a whole range of products priced significantly below where whole foods is now. kroger has figured it out. a whole range of regional supermarkets have figured it out more. don't know if they've figured things out. still, kroger has performed pretty well. if you look at some of the basic economics of this business, it is still a pretty darn crummy business to be in. if you look at gross margins of kroger versus whole foods, even if we take ben's ideas here onion going margins going forward, they're still pretty far superior to whole foods. is it 20% less?

i think that is probably a little bit of an overreaction. >> i think it is an increasing recognition by the investor that there is more value out there in sprouts and some of the other names out there that have a more attractive value offering, lower prices, significantly undercutting whole foods. >> real quick, what is the case, can you compare sprouts average selling price and typical margin to whole foods real quick? >> i'm not personally done a price study but my understanding is on key items like produce, they are typically 20% to 25% lower than whole foods. >> are their margins still fatter than whole foods? >> they do a better job of sourcing. they don't have quite a bit of food service component. i think that lower value offering is why you are seeing comps at sprouts -- sprouts reported last night. their comps were 13%. and accelerated guidance.

it begs the question, if you look over the past four quarters and you see a direct inverse correlation between comps going down at whole foods and comps going up at sprouts, is there something the company is losing or missing. >> i wonder if that means the end of the famed buffet bar or bars, plural. >> what will you do, kelly? >> if that's a big source of -- i gave up on them a while ago on those foods. because they are kind of expensive. >> see? there you go. it is a trend. thanks, guys. don't miss much more on the organic food market tonight. "mad money's" jim cramer speaks exclusive to irwin simon to get a better field of the trend in that sector. >> i had had this discussion with my grandfather all the time who calls it whole paycheck. still in manhattan it is much cheaper to go to whole foods than it is to go to the corner d dbodega. >> that's a whole different area. shipping all that food into manhattan island takes a lot and

you'll pay a lot more anyway. >> do i give them credit because their big jugs of peanut butter are pretty cheap. the dow is still positive. it's been up and down even in the last hour. the s&p and the nasdaq are still negative here. >> we'll look at the jobs market, maybe even tougher on people who have been out of work for six months than we thought. our steve leisman an our larry kudlow are on that next. also coming up -- >> there are real advantages to having the company together. >> billionaire warren buffett says proponents of breaking up berkshire hth berkshire hathaway need to "dream on." (man speaking jananese)

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welcome back. with about 25 minutes left, some volatility today. the dow -- we were sharply higher this morning, up about 115 points. then as we were coming into the last hour, it actually turned negative. some selling into the afternoon session. now we are back positive again. but the fdz has failed to go positive here, down 12 points. the s&p down a point and change right now. bill, meanwhile the latest tea leaf on the labor market

shows an unexpected drop in new claims for unemployment benefits. >> but, don't pop open the champagne bottle just yet. steve leisman has been combing through that report. when was the last time you combed anything though? >> oh, bill! cruel! >> i'm sorry. couldn't resist. but you did find -- we're going to all pay attention because you found some rather interesting but complicated facts. >> this is such an interesting complicated, i'll certainly ignore that comment. here's the story. data compiled for cnbc by a princeton professor, allen krueger, who headed president obama's council on economic advisors until recently suggested a big part of the 800,000 that dropped out of the workforce were the long-term unemployed. 28% dropped out in april according to the statement. they tell surveyors they are no longer looking for work. that's the biggest jump since 2008. that only went along with a slight increase in the percent who found work despite strong

job growth. here is where both democrats and republicans seem to have this wrong. some republicans argue eliminating extended unemployment benefits would compel the long-term jobless to find work. they didn't. they just dropped out. democrats argued paying benefits would keep them attached to the work force. that's answering the survey question saying i'm looking for work. that's proven by the data. but there is no decline in the percent of long-term unemployment who found jobs so it doesn't appear to matter to pay the benefits if the goal is to get the long-term unemployed back to work. krueger, he seems to be the guy who has this right. he also has a full set of hair. he predicted that once the benefits ended the long-term unemployed would leave the work in percentages that they have in the past. that seems to be correct. bill, fed chair janet yellen has been scent cal about kr skeptic

theories. it doesn't seem like you can make an argument to pay the benefits to get them employed. >> doesn't seem to solve the problem. you're not going to hold this against me? >> you've been making fun of me for 12 years. >> steve, isn't there somebody who's proposed two-tier minimum wage system that would let companies pay a little bit lower wage to long-term unemployed to try to get them back in? >> i've heard that proposed before. that more directly attacks the issue of what appears to be a stigma. they've done studies of this. if you have on your resume that you're out of work for "x" number of months, you are "x" less desirable to employers. excellent point. >> we'll talk more about those incentives. but of course, here in the floor box also with us, cnbc contributor larry kudlow. >> i got a few different ideas but let's talk.

>> what do you think about that two-tier system? the incentive structure for employing longer-term -- >> i don't want a minimum wage. i want a maximum wage. how about going state by state and letting businesses figure out what they shall pould pay at have the federal government dictate. steve leisman,ky just make this point? first, one month story on the household survey. it is such a volatile survey. the prior three months that survey gained over 2 million jobs. i hate to read too much into that. second point i want to make, unemployed -- the long-term unemployed, as a share of the population, has been coming down. now it's too high but it's been coming down. it was 4.25%. now it is 2.25%. that's higher than it ought to be but i don't agree with krueger's conclusions on that. i sure wouldn't dismiss the idea

that federal unemployment insurance has nothing to do with incentives. most economists disagree with krueger on this. the vast majority of the literature says if you pay people not to work for a long period of time, guess what? they won't work. >> but you don't pay them an lot, larry. the best benefit is one that gives a person enough to get by and survive but also has an incentive in it to send then back to work or to look for work. we know that wages are sticky as they go down. people do not like to go back to work for less than they were making before. there is a lot of reluctance to do that. >> i understand that. >> let me finish this point. you can make all the excuses you want -- i mean that with all due respect. the issue is the number of long-term unemployed is a national crisis, just as surely as cancer is a national crisis. and we need to bring to bear the forces of america to attack it. >> the forces of america. what we need here is to create more jobs. we are not creating enough jobs overall. >> i agree.

i agree. >> by some baselines we are 10 million jobs short of where we ought to be at this stage in the recovery. why don't we eliminate the corporate tax or get rid of it all together. >> dems want to do it, republicans want to do it. >> by the way, why don't we take the burden off of businesses for obamacare which is raising taxes, regulatory costs, the 29/49. you work the 30th hour, you got to pay obamacare. you are the 50th guy, you got to pay obamacare. even the cbo says are anti-jobs. >> i understand we need two separate conversations. you are having a conversation about overall job growth. i'm happy to have that conversation. one issue is recognize we have a separate problem with the long-term unemployment. the one that's shown by the studies that show when you are out of work for a longer period of time it is that much harder to come back to work. >> i agree with that. >> the same in the drop-out rates of long-term unemployed,

there are special issues. i think instead of incentivizing businesses to bring them back to work -- because the danger, the downside of this, the cost to society of a permanent unemployed class is very, very frightful. >> remember this though. there are so many job training programs. the federal government itself has nearly 50. >> they -- you know how people do "hire our heroes," nbc participate, a lot of people participate. it is a fabulous program. >> i absolutely totally love that. >> would you support a similar initiative, "hire our heroes," aimed at almost trying to make it a public service to hire people who are long-term unemployed. from it is not to hire them. it is to train them. i'd like to reform all the loudy training programs or for example, i'd subsidize and pay them to go to trade schools or community colleges. >> with government funds. >> i would take government funds. again, i'd rather do it at the state level. look, not every state has the

same amount of unemployed, whether it is long term or short tell. north dakota doesn't have any unemployment. texas unemployment is very low. i'd rather the states do the subsidies. but yes -- >> i can make one point? >> what i'm not for -- >> one point. >> what i'm not for is the idea that the federal reserve should keep pumping money into the economy to deal with what is essentially a structural and incentive problem over which they have no power whatsoever. >> one point -- two points. i'm so happy larry is on the day side so we can have these discussions. it is just terrific, i miss them terribly. the other thing is, in my travels, i've come across places where state level, local people working with businesses that are local to get the job training right, in programs that are working with community colleges, we were in charlotte and we did a story about using piedmont community college. by the way, it is something the obama administration has said they wanted to do, for which i

have found tremendous republican support. >> look, i am all for that. i am all for that. look, i give a lot of my personal time toward volunteer work and charitable work and raising money for charity. i am all for that. i'm not for the federal government to do it. i'm for states an localities to do it. but i want to repeat this point, overall we are just not creating jobs in this country at the rate that we shall. and i agree that it is a national tragedy and i want to say that macro economic policies have been anti-jobs and anti-business and i'm going to maintain that point. that's why you're going to see big changes in the elections coming up in the mid-terms. >> if there are any microlevel executives, bill, companies watching right now who want to make a gesture on this front, we've done this before. let us know if you're doing to hire the long-term unemployed. >> how about a new show, "kudlow and leisman. "what do you say we put it on at 7:00 every night? >> there is not enough hair for

that particular show. >> listen, i'll do anything cnbc wants me to do any time but the privilege of sitting next to kelly evans is worth everything. >> do not take the words out of my mouth. that's my line. you stole it from me. >> we got to go, guys. >> i'm one who's feeling pretty privileged these days. thank you, guys. we've got about 15 minutes to go until the close. holding steady with the dow up 19 points nasdaq and s&p have been lagging just a little bit here. now we have another round of earnings we'll cover as soon as that closing bell sounds. cbs, news corp., symantec. we'll get you up to speed on fum bers to look out for after the bell. we'll bring those to you the second they hit the tape so stay tuned. also, a major restauranteur, host of a new reality show will kick off this summer here on cnbc. joe bastianich will be here.

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16,580.84 is the number to watch for. that's the record closing high for the dow. we were trading above that level earlier today, only to give it up and briefly go negative. now we've turned things around with 12 minutes to go. >> but we have more foder to deo over. names you know. morgan brennan with numbers to watch for. >> hi, bill. two big media companies, cbs and news corp. television and publishing. for cbs the street is looking for 74 cents per share on $3.9 billion in revenue. that would be a yearly increase on the bottom line but still a drop in revenue. why? advertising. expect that to be down largely thanks to the winter olympics. for news corp., analysts expect 3 cents per share on revenue of $2.07 billion. news corp. and 21st century fox split in two last summer. news corp.'s biggest segments are its newspapers and book publishing. both have struggled and that's likely to continue.

>> all right, morgan. thank you very much. we'll watch for those numbers coming up. with ten minutes left in the trading session here, we are holding steady. if you're just joining us, you'll see the dow is up 23 points. quiet day. anything but. au contraire. the dow did open sharply higher this morning. we had had a lousy 0-year auction in the treasury markets with the yields moving up appreciably as a result, pushing stock prices lower. we start the down this hour, and we've come back. >> coming up, only in colorado, pot banks. yes, marijuana banks. on their way to becoming a reality. and old-school banks aren't too happy. we'll get into this one coming up. tdd#: 1-800-345-2550 trading inspires your life.

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about seven minutes before the close with the dow up 30 points. joining me now, drew in orderlick from hightower. guys, we're tight on time. david, you still are hanging on to your for the s&p at end of the year of 2,000 despite this churning. we'll have a lot of ground to cover before the end of the year to get there. don't you think? >> i don't think it is that bad. if we look back at the beginning

of the year, we are suffering from a first quarter. gdp was obviously we wrent negative. but i look at the estimates going out for the end of the year, they haven't changed much so i think most everyone including myself is looking for some payback in the second and third quarter. >> drew, it is clear. we've seen a rotation so far this year out of the growth stocks into the value. do you like those value stocks? is that the kind of sector you want to see us move higher on? >> yes, bill. we're definitely just fitting in the value segment as well as dividend stocks. staples, mlps, technology, larger cap. we are staying away fromle sm sr cap issues. last year was the great rotation from bonds into stocks. this year it is the great rotation from growth into value. we do think inside the marketplace you'll see that trend continue until we get such a point where gdp accelerates, and there is more runway for us

to be able to save. >> david, you would think as we go into the year further, long yields are going to have to go up at some point because the fed is going to end all of the quantitative easing by the end of the year. >> i would hope so, bill. if we're not seeing higher yields by some time in 2015, at least by mid year, i'm going to have to rethink michay calculus here. if we back that chart up, we can see we haven't broken those lows in october. we're kind of stuck in a range. i admit it is the lower end of the range. we'll have to keep an eye on that. >> gentlemen, we're short on time. we're coming back with a closing countdown for this thursday. after the bell, a full slate ahead of market moving earnings. here we go again. this time it is cbs and news corp. leading the way. also intriguing question -- should warren buffett's berkshire hathaway be broken up?

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today, up sharply on the open this morning. then just a slow move south late this afternoon and we are finishing off those lows of the day. we get news corp. earnings and cbs in a few machines here. both stocks have been trading higher, especially cbs, up almost 2.5%. bob pisani, what was that selling about today? any idea? >> we had a great story going in the middle of the day. central banks, draghi, yell didnyellen. internet names were stable until roughly 1:00 to 2:00. names like workday. put up the russell 2000. that kind of tells the story. at one point the russell was up 1% on the day essentially, then in the middle of the day just sort of dropped down. there's the laggard here. russell is now down 1%. there's those smaller cap names that are moving to the downside. that's where we kind of got disappointed today. >> thanks, bod.

we wi going out well off the lows with the dow up about 30 points. stand by, we've got earnings from cbs and from news corp. coming up here on the second hour of the "closing bell" with kelly evans and company. i'll see you tomorrow, kelly. plb . thank and welcome everybody to hour two of the "closing bell." i'm kelly evans. we do have a lot of earnings on tap once again but the dow jones industrial average managing to close in the green. it was up 100-plus points earlier this morning only to give it up during the last hour. then go back positive. looks like it is settling up about 33 points, again that's off the record high levels. the nasdaq gets beat by 100. off .4%. the nasdaq just about .1%. the s&p 500 gave up 2.5.

let's get right to it with today's panel. michael krofton, carol roth, michelle caruso-cabrera and jon fortt and "fast money" trader tim seymour. >> i think the markets is in a real transition mode, transitioning from being depend on fed to being dependent on the economy. the economy is sending mixed signals so the market has volatility that wouldn't normally be associated with an xi or a mark that's in front of a recovering economy. i think the economy is in okay shape but i don't think we'll really see any momentum focused on the markets until the third quarter. >> third quarter. that means we could have all summer to wait. >> i just wan to s about the market being dependent on the fed. in one sense i agree, we are seeing a little bit of a transition away from that. but today you had draghi's comments out of europe but you had yellen's comments and those

both seemed to bolster the market. i thought europe was particul particularly interesting given that they're in this low-growth, low-inflation, the fact that draghi put out there he might be willing to do something. everybody seems to be buying that rhetoric still. >> what's interesting about today is, look, i don't know what the right term is for what's happening or not happening with russia and the ukraine. >> should have been very market friendly what putin did. everybody doubts him and everybody has reasons and rights to be absolutely skeptical but all russia watchers say for at least right now he's pull back. we saw that was extremely market friendly for moscow. not so much for the united states. i think the mystery around the 10-year yields really bothers people. why is it -- the fed is coming out, yet interest rates are still low. investors around the world still want to go for 2.6% rather than what should be a rising stock

market in the face of a better economy? and yet they don't. why aren't yields rising. >> it is like the shakespearean drama of wall street. tim, you feel up to the challenge? >> he i think hedge funds and a lot of big money accounts were underweight an short treasuries going in that payroll number last week. you think until we break 2.50% i think we are in a range on treasuri treasuries. if you look at the central bank activity, yeah, today there should have been a much better backdrop for stocks. i'm not sure yellen told us anything different yesterday. good news out of china. russia, good news. but i think a lot of that was priced in yesterday. i think you are rotating out of technology, into industrials. i don't feel like anything's changed over the last couple days. i think the russell is very important. the close was very negative.

>> what about those tech stocks? i guess there are two ways. one is that the overall market has held up pretty well even as they have collapsed. the other is telling us something more wheresome is c w. >> today was kind of weird. you had had some momentum stocks doing really well. twitter off the upgrade got up more than 4%. grub hub up nicely, too. zillow up 4%. but then at the same time on the lower side splunk down, brocade down almost 3%. big stocks, ibms, apples, those were in the middle. maybe up a little, down a little. no clear story. >> but the spirit of your question, kelly, still is were those technology stocks just like the 10-year yield, are they telling us something. because the gas has come out of them for sure. >> cbs out with earnings.

more gone brenngan brennan. >> 78 cents a share. bottom line beat of 74 cents. revenue a different story. the street had been looking for $3.91 billion. $3.6 billion in revenue. the biggest semth, entertainment, coming in a little light. still going through numbers. basically bottom line beat, top line missed. >> those shares were briefly positive. now in negative to the tune of almost 1% after hours. cbs's stock interestingly enough, if you want to talk about what's happened in terms of the breakdown in the market the last couple months, jon, we were just saying, everyone's focused on biotech or social media. media has struggled the last couple of months dplp that's true. there's been a lot of popularity around media and content

companies. i hesitate to read too much into an overall tech slowdown. you got to remember apple as just has had had had a big rally, up around $600. ibm despite all of its issues still hanging in there. those obviously are not momentum stocks but then you look at twitter, you look at its upgrade today. looks like it might have a little something left despite the growth issue they have. from if you want to tie this over the concern and disconnect over the 10-year, seems like there is worry about the economy an those companies that have the really great forward guidance are the ones being rewarded. if you look at cbs, what it just put out, last year their revenues were $3.91 billion. >> i actually agree with michelle. the -- it's out -- the momentum of out of these momentum stocks. there he a always an ability to try to catch a falling knife. people think that they've bottomed but they haven't. there will probably be another

leg down and a lot of it has to do with the economy. >> you think there is another leg down for all of these names that are already down 20%, 40%? >> i do. >> what do you think about the media names in do you like a cbs and news corp.? >> i don't like any company that misses on the revenue side. earnings can be manipulated but revenues can't. revenues are telling the story. guidance will either confirm that story or deny it. >> in cbs' case, they did have a tougher because of the winter olympics following this year. that was obviously an nbc event. >> i think the comps were tough. if you look at the stock, it's now 15% off the highs. coming mo thee ining into these think a lot had been priced in. i think cbs has at least as many catalysts to rerating higher than anybody. >> such as? >> the networks ultimately are beginning to debundle. they'll begin to reprice a lot of content. they have asset monetization and

asset sales that will give these guys at least on a leverage basis 15 to 18 times eps in the next five years. in the media space these guys offer at least a value play over the disneys and news corpse. cbs into these numbers had had been beaten up. these are not bad numbers. >> that's a fair point. they have dentally come down over the last couple months. in the media space then, who do you like -- who are the winners an losers? the cover of "consumer reports" is how to -- something to the effect of how to get rid of cable. >> it is the guys that control the content and are repricing content. i love disney. i am long disney. if you look at what's going on in their studios business that speaks for itself. but also parks and resorts is a big part of their global business. the global travel business is actually very strong. i think disney is the most diversified player but it is not cheap. to say that disney is a stock you own with two hands here, no,

but it is a great company clicking on all cylinders. >> michael, a quick question as we wait on news corp.'s earnings, when you talk about where you see value versus growth in this market, is that how you select names? what's the key driver for you in stock selection? sl for us, it is revenues and guidance. earnings can be engineered and in many cases have been engineered. if revenues are beating and guidance is good, we take a look. >> i imagine you aren't loading up on whole foods at the moment. >> no, but whole foods is kind of interesting. but it may reprice to be more like a regular grocery store. if you go through the regular grocery stores, as i do often, there is a lot more organic food being carried. the competition for organic foods is at a much different level than there has been in the past. they have going to have to really prove themselves. >> seema mody, how do they look? >> third quarter results are out

for news corp. 11 cents a share x items versus an estimate of 3 cents. revenue came in at $2.08 billion versus a street estimate of $2.07 billion. a slight beat on its top line. a big beat on -- excuse me. a strong beat on its top line and a beat on its bottom line. as well, news information services inline with expectations. book publishing sales stronger than expected. shares of news corp. moving slightly after hours. back over to you. >> they are. seema, thank you. joan jon fortt, they managed to pull out a beat. the real concern was about this part, not the 21st century fox, but book publishing, the newspapers. >> i think you look to what they say about guidance. everybody is talking about third and fourth quarter now. here's a company. that deals in media. you want to see what they are saying about advertisers and the willingness to spend. a lot of the consumer companies that are eventually putting money in the pocket of news corp., i don't know if just this headline number out of the lavt

last quarter tells us that much since everybody is looking forward so much, just wondering how much gas is there in this economy. >> absolutely. we'll get more into those results and more from those calls as they happen. thank you, guys, for now. tim, appreciate it. stick around, everybody. catch more of tim seymour coming up with the rest of the "fast money" crew at 5:00 p.m. they'll be speaking to someone who thinks that nobody understands tesla right now. he'll explain why. straight ahead, biotech stocks plunging about 18% -- 13% since the beginning of march but is now the time to jump back in to this fast growing industry? morgan stanley chief u.s. equities strategist adam parker weighing in next. also, warren buffett has spent decades building berkshire hathaway into one of the world's biggest companies. but coming up, someone says now is the time to break up berkshire. he lays out his case that says will be a windfall for investors. and colorado approving financial service cooperatives for licensed pot sellers. but is this a big step towards

overregulate what's quickly becoming a cash crop for the government? creep it right here. you're watching cnbc, first in busy worldwide. honestly, the off-season isn't really off for me. i've got a lot to do. that's why i got my surface. it's great for watching game film and drawing up plays. it's got onenote, so i can stay on top of my to-do list, which has been absolutely absurd since the big game. with skype, it's just really easy to stay in touch with the kids i work with. alright, russell you are good to go! alright, fellas. alright, russ. back to work!

welcome back. so the nasdaq has been the real market laggard recently.

it was an underperformer again today. sheila, what is eating away at it? >> such an interesting session today at the nasdaq. entire morning we steadily climbed. at one point we were up as much as 1%. but since then we've ended in the red, down .4%. mark newton a trader at grey wolf execution says is he not surprised. if you look at trend since early march, april, it's been a down trend. the fact we've seen these nasdaq reversals and laggards going on is not surprising. also watch the small caps. russell 2000 breaking up that 200-day moving arch. take your cues from there. as to some of the individual movers here, semiconductor stocks was an area of strength today. the philadelphia semiconductor index is 1.5% higher on the day. it wasn't enough to offset a lot of the weakness that we saw in biotech. the nasdaq biotech index downer inially -- near 24ri% on the

down. green mountain coffee corp., 21st century fox are two big winners. priceline and tesla were the big lo losers after their reports. tesla, down 11%. speaking of tesla, we have some breaking news now on the electric carmaker. phil lebeau joins us with the details. what's going on, phil? >> kelly, missouri is looking to become the fourth state potentially to ban the sales of electric vehicles. tesla vehicles, to consumers. essentially the state senate has passed a bill that has an amendment which says that you cannot do direct sales for always without going through a dealership. that's against the tesla model. it now moves on to the house. we are a long ways from seeing this actually become passed in to law but at this point missouri is moving towards becoming the fourth state that would join arizona, texas and new jersey to ban the direct sale of automobiles. of course that certainly would impact tesla and its show room

or gallery in st. louis. >> it certainly would, phil. by the way, since the coverage and all the discussion about that, none of those states, even though we have heard people talking about it, have reneglected on those. the three other states that are blocking tesla sales? >> they haven't changed their position. new york and ohio both negotiated with tesla to limit the number of galleries or show rooms that they could have. that might be what we ultimately see in missouri as well. at least they can contain it from the dealer perspective. >> great point. thank you for now. speaking of tesla, we want to talk about the slump in the nasdaq over the past two months. it's left many investors wondering about that index's future. adam, good to see you. if you had in a sentence to sum up what's going on with the nasdaq here, and do you also see further downside for some of these beaten up parts of the market? >> our work shows that when you

see growth underperforming this much it typically last much longer, on average about ten months. magnitude has already been pretty sharp but it could last a little bit longer, at least until people get more comfortable with the growth outlook for the economy. >> should people stay away from the social media names, biotech indexes, in other words, stick with the winners an sell out of the losers? >> if you are managing money, the three fastest growing industries in the stock market over the next two years according to consensus revenue numbers are biotech, internet and software. i don't think you want to have no exposure to those trends but have you to be much more ca careful. investors will be a little bit more judicious going forward. >> news on tesla, where does tesla fall in to your sort of sector screen? how do you classify this company? is it a tech company, an auto company? >> i can't comment on individual securities, as you know. i'd say generally what people

have been concerned about are stocks and whether they are in these growth or momentum baskets. after it rolled over, after yellen's comments, they viewed that i go late cycle, early economy, so some of the stocks on the screens acted poorly. when you miss -- if you're an expansive company and you miss on revenues earnings, the penalties have been pretty harsh. >> huge. >> that penalty verfor missing versus reward ratio. >> what's the message? i'm an investor sitting at home. how do i screen them? what am i screening for? >> i think you screen for earnings rather than sales in the biotech and tech space. there are certain biotechs and technology companies that have been sold off with everything else that should have been. in the biotech space, gilead, am gen and bioen. you can buy them, they have

earnings, they have growth and i think they'll weather the storm. in the tech space, look at old tech that's sold off. companies like f5 and others that have sold off with the more speculative tech stocks when they really shouldn't have. you look at earnings rather than sales. >> michelle wants to saying about tesla news. >> i'd like to rye to the office every morning with a horse and buggy and whip. how antiquated do these people want to be. it is amazing how they can let vested interest just take over. they are so obviously cronie capitalists. >> in arizona, they are bvying for that gig ga factory. it is absolutely confounding. >> hypocritical. from it is almost like it is a conspiracy. i think what tesla will be up against in the not-too-distant future are sick lar vehicles from bmw, audi, mercedes. the dealer network and the

dealer lobby is just trying to buy time until they can put a competing product in the marketplace. >> the dealers and some of these manufacturers have big presences in these states. so exactly. there is a vested interest here but there is also now more incentive for elon musk or others to blow up the retail model. not just the model of the car but also how it gets sold. we're seeing those innovations happen through mobile. seeing them happen through cloud. maybe it is time -- >> they are making them work harder. >> you can do a pop-up shop to tell teslas. >> sales in texas are actually pretty darn strong despite the fact that they have barriers to entry there that are kind of artificial. maybe that model actually gets expanded and ends up worse for the dealers than it would have been if they played fair. >> makes the dealer almost sper

spew per fl superfluous. >> you say it is indicative that we are in the late stages of a market cycle. correct? >> historically when growth underperformed by this much we went back and said what's happened to the market in the past. as i mentioned, on average, that lasted for ten months. the sector that historically was the best performing when that happened was energy. several weeks ago we added more energy to the portfolio to try to capture that. i've been a little bit surprised by the magnitude of it but that's what the historical playbook has said. that's what we've been trying to do in the portfolio. >> kelly, don't you think people always pay more for possibilities than realities? as these numbers are coming in, whether on the tech side, with lower user growth, investors are starting to see the reality that the growth may not be where they thought it might be so you cannot justify these growth multiples. >> that gets back to michelle's point on the 10-year. there's just something out there that's making the investor very reticent to put new money to work. it may be the fact that they don't see the type of growth that they once thought they saw. an that's indicative of a

economy that may be slowing down. i happen to think the economy may accelerate in the third and fourth quarter but it certainly slowed down in the second quarter and it may be make the market very nervous. >> i would encourage you to look at software. unlike biotech where some of the business models are way out in the future, software companies aren't investing in pcht p ap a people. that's probably the area within the fast growing businesses i'd look at. >> thank you, sir. warren buffett is the ultimate value investor. why our next guest says the best way for buffett to create value for berkshire hathaway is to break up the company. joe bastianich gives us the dish on his upcoming show that debuts on this network this summer and what traffic in his restaurant says about the state of the economy. be right back.

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doubt, one of the most recognized and largest public companies in the world. for shareholders it's been a pretty good five years. shares nearly doubling in value during that period of time just like the overall market but that's not enough according to my next guest. he says buffett needs to do more such as break up the company to unlock more value for shareholders. much more value in fact. author of the 1987 famed book "the quality of earnings," known for analyzing balance sheets and he's joined by buffett watcher tom russo who couldn't disagree more here. the panel will join in this a moment. welcome to you both. ted, you are not talking about breaking in two. you are talking about swpinning out 27 companies? >> no. there are 77 operating companies. most of them can be spun off. and within them, you would have spin-offs of spin-offs. for example, he owns 50% of heinz. heinz easily could spin off six or eight of its divisions. you also have the marmon group

with 160 subsidiaries. there are nine different areas. you can have probably 12 marman groups. buried in mid american pipeline, is america's largest home brokerage unit. i don't know why it is the mid mesh pipeline. that of course obviously could trade on its own. all these companies have world class management. that's why they were bought by warren buffett. they were doing very well on their own before. they do very well on their own now. if you look at the end report, warren buffett unwittingly makes a great case for doing this. he raves about the management. he says i leave them to the point of a point of abdication. i repeat, i leave them alone to the point of abdication. he has no general council. no resources director. "the new york times" recently

pointed this out. they said it is almost unparalleled. but i would agree, the managers are so good. as far as acquisitions, with buffett and hmonger do, they make acquisitions and investments. these corporations were making acquisitions on their own before. >> yes, okay. let me just have tom rebut. because tom, ted is saying that if buffett were to announce this, the shares would double immediately. >> kelly, it doesn't really matter. what you would sacrifice is the ability for the business to internally re-invest. there are two things at risk. the internal re-investment of the cash flow for someone may have spun off has purchased without tax the purchase of dozens of other companies. tax-free re-investment is terribly valuable and if you look at the investments that are going forward, the big ones, whether from the big three divisions or from m an a or from

todd and ted's management of the portfolios, we need to keep the capital at work internally. the second reason is, if you split up or broke up businesses from birkshire, we'd restrict the appeal of the company to those business sellers who want businesses that they built to go into birkshire where they could be well cared for and they don't run the risk of being broken up. so now you would restrict the future. now the fact of the matter is, there are two questions. one is that birkshire has millions of dollars of cash flow a month that they have to deploy. if it is too much they can address that through dividends or through share buyback. the second thing is, there are 300,000 employees at birkshire now. it may be too big to manage. however, we can discover whether it's manageable or not when -- years later. we don't need to double the price of birkshire today when within the company we build value. if it turns out that we need to take cities, do it later when

the shares go into the gates foundation an the effects of whatever they do will not be taxable. >> we did ask warren buffett about this. take a quick listen to what he had to say. then ted, i'd like you to respond. >> there are real advantages to having the company together. one big advantage is the ability to allocate capital from businesses where it can't be used effectively. the present capital can be used effectively but incremental capital has very little value and we can move that over to other areas. >> what about that, ted? i understand that you're saying the past is not prologue. >> there's 330,000 employees. only 25 at headquarters. 25 at headquarters. >> sounds like a pretty efficiently run company. >> efficiently run and they don't -- these companies did not need warren buffett to run on a day to day basis, and what's

interesting is, now he has said -- buffett has said that everyone of these companies is in such good shape, two take an idiot to run him in the ground. now what he's doing is he's taking all their excess cash and he's running it up to headquarters. he is not willing to keep excess cash. >> i disagree with that, by the way. >> in the end report he says, i do not trust them with excess cash. i'm quoting him. >> isdy agree. he re-invests the money. >> in the annual report he says, "i do not trust them with excess cash." but they made 24 acquisitions on their own last year that they did not need warren buffett for. he bought heinz -- by the way, tom, you invest in food and beverage stocks. >> i do, yeah. >> you'd rather have heinz just sit there alone. you don't care about having eight different divisions spun off to you on heinz. also, you talk about buying

companies at a discount. your mod tel is a company that doubles itself in one year. we have a double in one year here. >> but it doesn't really matter. if you continue to re-invest with a tax-free shelter that comes from re-investing within the organization, the intrinsic value will grow at a rate that will well reward investors. if it turns out some day we need to divest divisions, the same private market value will surface but there's just a question, there is no need to do it now and we have an enormous amount of forward returns that will come from attracting sellers of businesses to us which we won't otherwise see. >> one thing for sure, when buffett and hmonger leave this company, this discussion i'm sure will heat up and we'll have you back. up next, we'll look at what's heating up cnbc.com today. "the hot list" is straight ahead. uruguay has become the first country in the world to fully

legalize pot. that company's president openly smoking pot with a reporter who will be on the show later. wait until you hear what the company's leader has to say about america's pot laws. stick around, that story is coming up. latte or au lait? cozy or cool? "meow" or "woof"? exactly the way you want it ... until boom, it's bedtime! your mattress is a battleground of thwarted desire. enter the all-new sleep number classic series. designed to let couples sleep together in individualized comfort. starting at just $699.99 for a queen mattress. he's the softy. his sleep number setting is 35. you're the rock, at 60. and snoring? sleep number's even got an adjustment for that. find your sleep number setting only at a sleep number store. know better sleep with sleep number. little things, anyone can do.

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so the earnings action is showing no signs of slowing down this hour. seema mody has the latest numbers for us on a couple of companies. >> a lot of big movers. jazz pharmaceuticals getting hit hard in the after-hours trade. the company posting weaker than expected first quarter earnings and revenue. its full-year guidance shy of expectations as well. the stock currently trading down by 8.5% after hours. now rocket fuel also moving lower in after hours. it posted a loss in its first quarter on weaker than expected first quarter revenue and it said its second quarter sales will come in below forecast as well. sharing getting hit hard after hours down about 28%. >> wow. that's going to be a tough day. seema, thank you. dr. doom has struck again. he's captured the top of the hot list. here's how did he it. cnbc's.com managing editor allen wastler joins us now. >> yep. dr. doom's at it again.

author of the widely read "gloom, doom and boom report" did an interview with "squawk box" this morning. we wrote it up, threw it on the web. it is getting an average of 2,200 readers every minute. that's a pretty high number for us. he is back to the same old thing, he's worry we'll see another crisis that will be just as bad, if not worse, than back in 2008. he's been beating this drum for a while. >> i hope that's what we write on the flag next to the story, "same old flag." >> we always go for balance and we point out there are plenty of guests on cnbc that say it is not going to be that all over again. number two right now, diana olick wrote up numbers for the first quarter on home buys. all-cash offers hit a high of 43%. she gets into how that's putting a lot of pressure on first-time home buyers. you have that investment angle, then you have the real-world home buying angle. >> finally, number three, we hit the tax inversion question

again. senator carl levin introduced -- says he is going to introduce legislation to close the whole thing where a company can basically move to another country and reincorporate there and duck u.s. taxes. that's been a hot issue with our readers for the last couple months and been particularly high since the pfizer deal. people are eating that up right now. >> "the journal" has a great little item right now on the fal fact that if pfizer does this, its own employees that hold stock will have to sell it so they'll get hit with the taxes. the irony continues. some states run liquor stores. now colorado may be the first state to help pot shops. the president of uruguay where the government controls that market from beginning to end starting with setting prices. journalists just back from the latin american country where he joked with joint with uruguay's president. and there's video. stay tuned. ♪ rocky mountain high [ indistinct shouting ]

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[ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪ welcome back. the marijuana conversation is lighting up and colorado is looking to score big on pot legalization. the state senate passed a bill yesterday to create the nation's first state-run marijuana co-op. now this comes as the country of you are delaware has set -- uruguay has set up a legal marijuana market.

this is a tongue twister. welcome, it is good to see you. >> thanks for having me. the president of uruguay let me smoke pot in front of him but he didn't actually partake himself. which is kind of sort of represents his way of thinking about marijuana, which is that it can be per missive but they don't have to necessarily sanction it. if you look at how many regulations and how stiff the sort of way that the government is controlling the marijuana trade in auruguay, it that speas to how colorado is different. >> how would you explain the differences? >> colorado is an open market for marijuana where tourists can come in, you can go skiing vacations where you get sort of marijuana as part of it. the idea is that it is a revenue generator and an open market for entrepreneurs who want to do whatever they want to do with marijuana. uruguay, on the other hand, their job is essentially to stamp out the black market. they see the legacy of the war on drugs as something that's

destroyed countries and they kind of want to figure out a way to change that narrative. >> this is carol roth. how did you get this assignment? it sounds like the best assignment ever. >> well, it was the best assignment ever. but it was kind of our idea in a certain way. uruguay, we saw in december of 2013 is when the actual legislation was passed. we said to ourselves, we got to go down there to see what it is like. we thought we'd go to a place like a weed smoker's paradise. instead what we found was a lot of people who were wary of these regulations because they thought it infringed on their civil liberties and their and the to smoke pot as free people. >> and they'll all go to colorado? >> but there are problems in colorado as well glp they can't smoke is why? because it is regulated to the point they can't get it? >> they can smoke it. it's legal to smoke on the street since 1974, i believe. but the amount and quantities that you can buy and grow that the government is regulating really heavily. you can only have six plants if you grow it yourself. if you want to buy it at pharmacies, can you only get 40

grams a month. >> is that going to work? this sounds to me like it is sort after quasi legalization that can still be open territory for a black market to spring up around this. no? >> yeah, i think that's a valid concern. not only because the desires of the consumers are high but because the enforcement isn't necessarily that harsh. there are fines that are levied.

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hit tv shows like top chef have brought chefs out of the kifen and into the spotlight. cnbc is launching a new show this july. chef tim love is on a request to discover and invest america's injection generation of restaurant superstars. joining us is joe alongside mario vitale. i think we have all been to one of your restaurants at least. italy is a fantastic concept as well. >> yes. there will be another italy downtown. >> italian food. >> it's the center of everything delicious and fabulous about italian. everything. quite an experience. >> there's probably a lot more in the pipeline for you guys. >> italy, globally we just opened in dubai and istanbul and

freedom tower is exciting for new york. >> congratulations on that. >> thank you. >> the question i think people have is what do the next generation of restaurants look like. >> i think italy is a game-changer for restaurants. the first time the idea of where you shop and eat become one in the same. you go to eat in the restaurants, you pick up some food. it's are all the senses meet and real exploration of food happens. >> what was the genesis of that concept? >> started by a fellow in italy and in italy -- >> italy is good. >> italy. and he was fascinated with restaurants and markets and had the idea putting them together for the first time. >> it's a super concept at a time where we're seeing pop-up restaurants. i'm assuming it's because you have the expertise and experience to leverage where some of the new entrepreneurs

want a chance to test out their idea. >> this is an involved game. the italys of the world are big, big buildouts. we count on a lot of people coming through. we need to be in big cities. london is next, hong kong, singapore. >> what's your take on companies like grub hub and open table that are trying to take a piece that restaurants have tradition nally done? >> we would rather have you come. because i want to see your beautiful face in the store and feed you myself. i think restaurants are traditionally low-tech. they come in and facilitate online orderings, what have you. we feed people and make people happy. >> you're one of those guys when you go on open table, 7 to 9 is blocked off, right? yeah.

>> all due respect to open table, pick up the phone old school and call them. and say i want to come to your restaurant at 7:30. >> how many restaurants are you going to have in a year? >> we have 30 rest raeaurants. we're growing a lot in southeast asia. we're opening up in korea. >> what's the cnbc show going to be like? >> we're bringing the aspect of entrepreneurism to food. we're out searching for the next great food or restaurant idea to invest in. we sit at the table and make a deal. the first season is -- will be premiering on july 8. some you'll see here, in seattle, new york, brooklyn.

really a lot of people that have talent and passion. maybe not the experience or money to make it happen. so we're putting in the money. they're putting in the passion. you can ultimately come and eat there. >> i think that's the plan for all of usch can you just try a new york market next time? >> we will. >> thank you. one more day left in the week. please join us again tomorrow on the closing bell. rick harrison of "pain stars" is going to weigh in. we'll be right back. became your business. at&t can help simplify how you manage it. so you can focus on what you love most. when everyone and everything works together, business just sings.

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welcome back. time for a quick final thought. my final thought. 85 million is what italy, their mid town does here in manhattan. >> fantastic. i want to get in that business. >> do you? we were asking about the financing. >> that was revenue. you don't know what profit is. >> i think he said was a 20% margin which isn't too bad. >> fantastic. >> final thought, michael? >> let's get back to berkshire hathaway. i think when they decide to leave the company, they will

break it up. >> you do? >> i think there's a lot of value buried in the companies they hold. >> i'm looking forward to the nfl draft and my prediction, jadeveon clowney goes number one. >> i will try and look for a market signal in that. >> absolutely. >> were you in favor of breaking up berkshire? >> i was not in fave or at this point in time. but hogs get slaughtered. do not mess with it if it's not broken. >> ukraine is expected to be violent. putin is expected to go to crimea for a big parade. so far the markets haven't completed much. who knows. >> by the way, that's one to watch as well. >> technology as always. we're moving into where technology innovation matters more than ever.

not just about growing your audience but having the innovation to change your business volumes. >> if there's a message from today, it's pick up the phone and call your restaurant or walk in. >> i'm not going to do that. >> or send your kids to restaurant school. >> time for "fast money" and melissa lee and big crazy earnings show. >> "fast money" starts now. more trouble for tesla breaking in just the past hour. missouri looking to ban direct sales. more on that coming up. our traders are tim, dan, anthony and guy. now this morning the nasdaq looked like it was getting a bit of a bounce. couldn't stay in the green here. amazon, facebook and fireeye all seem weak. is the nasdaq fall getting close to the bottom? we're talking about the divergence and how one is