i told you the snowstorms. colorado rockies showed a picture of coors field covered in snow. the team is on the road and will come pack to temperatures in the 70s. >> the whole arctic blast thing. thanks for watching "street signs," everybody. "closing bell" is next. >> welcome-to-"closing bell," everybody. i'm kelly evans down here on a monday. stocks up almost 2% at this hour. >> big comeback day. when it's short covering or whatever it is. good to see for the bulls here. bill griffith. green arrows to start the week and gains for the dow. yes in all-time high territory for both the dow and the s&p 500. could join in that rarified territory. any close above 1890 and change is a new all-time high and right now we are there. >> wow.

even as the nasdaq is rallying today. there's red flags for tech. a very bearish outlook for morgan stanley on tablet, fesk. you need to hear what's going on in sales on devices like ipads. a special report coming up. the quarterbacks for ipad sales going forward. hope you saw it this morning. tim geithner unplugged. more of cnbc's interview with the former treasury second coming up. what does he say to people who still insist the bank bailouts was unnecessary. tim geithner with very honest and straightforward answers as he spoke to our own andrew ross sorkin. coming up on "closing bell." looking forward to that very much. >> final hour, continuing the snapback that began on friday if you want to step all the way back. dow adding 115 points, shy of

16,500. s&p 500, the nasdaq is the real talk, up 27 points, 1.8% and there's the s&p. adding 17 points or 1% today, a strong start. >> 1.8 on the nasdaq. joining us. we have kathy wood, ron weiner and hank smith, steve saks from pro share advise errs and our own rick santelli joining us as well. lately people have been rooking to the defensive issues, the value plays and suddenly everybody is going up. what do you make of this ral? >> seen this a couple of days over the last few weeks, mean reversion trade. i think that's all it is. at the end of the day there's somewhat excessive valuations, seen that in tech and biotech in particular.

>> might be more work to do. i think we're getting close. as we look to the back half of the year, the sectors that have underperformed the most over the first quarter, quarter and a half have been underplaced. >> i know you're echoing see's thoughts. is it going to look more like 2013 and what do you see of what happens in terms of leadership and opportunity. earnings are not that good. they are solid. >> companies don't go up or down in three weeks. that's people buying and selling. if you want to make money for the long term, earn them both.

i can't tell you whether value or growth is the thing that's going to work for the small or large. value growth, have your feet in both. i don't know what's better and nobody else does either. >> hank smith, where are you? where will you put some money to lead the charge here? >> let's start with where i want could, wouldn't go in fixed income which we still view as the most overvalued asset class there is, particularly sovereign debt so for the long term stocks will give you the best return and i think with regard to this year even though bonds have gotten off to a much better start i'd oouz use that as an opportunity to sell the stocks and buy the stock market that looks very good for us. consolidated 2013 gains and getting rid of the excesses in

biotech and social media and what have you and at the end of the year in mine high single digit return but it will look very good, and as you mentioned we're still in the middle innings of this bull market in our view. >> take a twitter, for example, an unusual case. had a big run one in 2013. in some ways it feels like we're starting over again. that's why i was asking maybe it's time. >> are you looking to add exposure at some of these levels? >> we stick with much more conservative blue chip dividend-paying stocks so we think it's very constructive that the market is taking out speculation without impacting the broader market. kathy, what do you think? growth or value?

lately it's been value and today it's everybody going up. >> where are you putting money to work. >> we're seeing signs that the economy is really picking up. >> housing seemed to be falters so investors were paying up for scarce growth. now that we're seeing the economy recover, we think some of the social networking stocks and internet cloud-based stocks like athena health have been cut in half and way overdone on the downside. we don't believe we're in a bubble but in an unbubble as far as the stocks go. what's going on with these companies is pretty profound. >> this is a great point. like athena health, do you go so far as to add twitter? what are some of the places that

you think is attractive. very focused on general purpose technology platforms, very big technology companies that are providing platforms that cut across sectors and that enable a tremendous amount of innovation, take a lot of inefficiencies out of the system. >> such as? >> well, twitter, facebook, athena health, all of those are in that category. >> some of the usual suspects, very interesting. rick santelli, just looking at the numbers today, looks like they are selling a few bonds and buying a few stocks here. what do you make of today's action? >> well, if you look over the last several friday to monday cycles knowing that geopolitics is the new weather for the marketplace in the u.s., we've seen in the treasury complex lower yields on friday going into the weekend and yields pop several basis points on monday. >> right. >> this is the third time around. if you look at the chart and i

started this chart at the 29th and the last time we were at these yields was the first of april. a bit of a higher rate is helping the dollar index and the next two are very enlightening. the high-yield junkie and barclays high yield spread relationship for five years and all our guests are talking about how it's bubble itches in sovereign debt, the risks where the bubble is at and the risks is where all the governments around the world are hedging and wedging and manipulating to try to make jobs and growth, but governments don't make jobs and growth. risk is being overplayed just like prior to the '08 crisis. how will it turn out? i can't tell you but stroms always last longer to the upside? >> what about the move in gold. there's a couple other things

that i find interesting. aggregate wages are running at a 4.5% space and it's been muted perhaps by geopolitical factors. is that the same thing, stuff that's happening outside this country in. >> gold trying to acaptain would be trying to look at climate change and look at how they haven't adapt ed scientific principled to it. i know the bring of america is a lot of brokerages out there saying this is the time to sell. the chart doesn't look like it's time to sell. very limited upside. >> anybody buying gold, like gold? >> it's not a trend. i don't think as advisers we would do that. >> anybody on the commodity play. a lot of commodities have been very strong.

anybody buying commodity plays right now. looking for inflation here. >> i'm not buying xhod kiss, but i do think that they are seeing a move because the economy is picking up and i do think the dollar will be a dampner on commodities so more in a holding pattern. >> you see the dollar strengthening here. >> yes, i do. >> i ultimately think that the commodity trade is an inflation trade, global growing macro economic story. i think we've seen the trough in commodities for the long term. >> and i wonder to what extent chinese concerns will weigh in. we talked last week about the sharp rebound that we saw indicating that we're shaking off some of the weather stuff that happened earlier this year.

there's been a huge drop in exports, notably to china. while demand is picking up. how much growth do you think could be here? >> well, i think it is important but i would remind everybody out there that buying commodities is speculating. there's no income or balance sheets. you're totally dependant. >> but the government can't print corn or wheat, the government can't print beans and the government can't print oil. the world needs energy no matter what the flat earthers have to say and the food commodities are going to do well this season. >> everybody should read about rice, if we want to talk commodities. great report in "the economist."

if you want to channel a couple billion dollars to something that can really help the world's population. >> there's the word for the gang. >> buy rice. >> i don't know if you want to buy it. >> invest in it. >> we're up 70 points right now. i think it's about the high for the day with a gain of 1.7%. the dow and the s&p are in record territory with today's rally. >> names like pan d'oro are among those that have been beaten down and are rebounding today. going to a go-go. >> also. morgan stanley's slashing its growth forecast for tablets. by more than half.

wait until you hear how that could affect your portfolio. >> and pandora heating up on the heels of the big wall street upgrade and how wary should they be with the deal for beats electronics in the work. a stock brawl on pandora coming up. weekdays are for rising to the challenge. they're the days to take care of business. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive,

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rally day on wall street. pretty strong markets and it started in asia overnight. strong markets then and european markets were strong this morning and now the dow and s&p are in record territory where they stand right now. look at the nasdaq, that's up 1.7%, all just oohing and awing over that until we saw the russell 2000, the one in correct territory recently, now popping today to the gain of 2.5%. >> bertha coombs, what's driving these markets? >> food, for one thing. pinnacle is going to be acquired by hillshire brands at $6.6 billion. it comes to about $36, two cents

a share and 18% premium, and other food companies are moving high as a result. hain celestial and twitter gaining ground after sun trust upgraded the stock from a brie to neutral with a $45 price target. took more than 150 characters to do so. and whirlpool gaining grons they will affirm guidance at the building conference this wednesday and we're ending with gogo after posting a higher than expected 30% jump in revenue. gogo trading up and i admit if

it's there i use it. >> let's talk about it, more on where this arkd communicator is. we bring in the president and ceo of gogo. people are surprised. revenue grow and this is a growing field. we had a great quarter exceeding expectations and we announced plans to expand capacity and also announced signing up a new airline. >> we're excited about all these things.

in that case why can't you boast earnings growth or earnings, period. >> at the very early stages of a capital intensive industry and showed significant improvements some quarter over quarter and the last several years and this will be profitable. >> we have very good gross margin. we run about 50% and we think that's already sufficient. what about this move by 1-888-to provide this move with honeywell. that's a. >> we've been winning by getting the new solutions into the market and the new solutions will be faster and arrive sooner than the proposed 1-888-solution. we continually see competitors talk about what they are going

to do in the future and compare it to what gogo did this the past. that's an erroneous comparison. we won in the past and will continue to win. >> no change in strategy or pricing, nothing, you'll just proceed as if no at&t is moving into the neighborhood. >> a little extra motivation to run harder and faster but the same plan we want to keep signing up the airlines, and we want to keep introducing better solutions into the marketplace. we had -- did a lot towards that end and that's been our track record over 20 years in this business. >> you also point out you got, as you said, 20 years. it's taken a while to formulate these partnerships, to get the technology going. all of that is understood, but it almost seems like the biggest risk here is customer satisfaction. bill tweeted out just, you know, talking about gogo, your potential rivalry coming up with at&t and asked people what they thought on twitter and the

reaction, frankly, was somewhat negative. people thought that it was too slow or that the product itself wasn't that great. >> i realize they chose -- this wasn't an initial survey. it's not like we're picking on, but that has been the knock. >> i'm just curious. how much more investment is it going to require to make your service fast enough, reliable enough, user friendly enough, especially with the big rival potentially coming? >> yeah. you know, my 30 now years in telecom, every time you introduce a new telecom technology in the early days you're always rushing to keep up with demand. ask at&t about manhattan after they launched the iphone. it's tough in the early days but that's all good news. you solve those problems and keep it growing, and we have the best technology road map and we're introducing at&t for today. that's really making a difference in the marketplace. and what 2ku and gto come that will be even better. that's just the way it goes. >> you've been in the business for a long time in,

communications, so you've seen a lot of companies come and go. those that have the better new mousetrap, whatever. my guess, and let me get your take on this. gogo is right for a takeover. you develop the technology. you develop the relationships. you get the penetration into the market. you've got a great stock price right now and people are going to move in, an rather than try and reinvent the wheel on themselves they simply buy gogo. >> well, first, as a matter of policy we don't comment on m & a but i do believe strongly we have the resources to suck seese seed as an independent entity. there's only 40,000 planes in the world. 20,000 commercial and 30,000 business jets and gogo is spending what it needs to spend to develop the technology in our space. >> all the more reason to buy you because there are a finite number of airplanes out there that can take this kind of technology. >> yeah. >> again, we don't comment any

of that. >> i'll leave it at that. >> one last question and i know some has to do with new satellites getting up in the air with regard to the efficiency and the bandwidth you're able to provi provide. is that something you with gogo can provide or do you have to rely on other tech have i? >> first, our technology solutions, many that exist on existing satellites, so we're not dependant on the launch, but we do expect satellite technology to keep improving. we're not in the business of launching satellites. we leave that to others. >> i imagine it's a little more sophisticated. >> great to see you, michael. >> have a good day. >> i'm one of these people, bill works just -- i like the fact that i can't get wi-fi on a plane. >> unplug me. read a become or something. >> got about 35 minutes to go here into the close and a strong day it looks like for these indexes. now we'll keep a close eye on what's happening in the ukraine for any changes there. the dow is adding 108 points.

the s&p 16 and the nasdaq 70. that's 7-0 today. >> big number. plus, as we mentioned, the russell 2000 is up 2.5% right now. anything can happen in the final hours so don't go anywhere on that. also, up next, as a california community battles a hot sauce maker to shut down because of the smell in the community, at least 15 states are wooing that company to relocate all for about 80 jobs. we'll speak with a texas lawmaker about his efforts to lasso that company to the lone star state coming up. announcer: where can an investor

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>> breaking news on general motors. what's going on. >> another twist and turn in the ignition twist israel. a new lawsuit has been filed on behalf of the melton family. attorney lanz cooper filed run of the original lawsuits on behalf of the daughter who died in a 2005 chevy cobalt. now they have filed a new lawsuit. the new lawsuit accuses general motors of concealing evidence. the attorney basically said, look, people inside general

motors. we want to find out who lied about this, his words, not mine, planning on deposing a number of people at general motors and hoping to include ceo mary barra who said she knew nothing of this recall until it was brought to her attention later this year. that's the latest on the faulty gm ignition switch. back to you >> you do have a special coming up on gm this weekend, is that right? >> and we're going to look at this. failure to recall, investigating gm and at the party of the recall is a decision made by a form former engineer, the decision

was brought up at the congressional hearings and according to lance cooper, i want to talk to giorgio again and other executives. that's what the attorney for the melton family is saying. >> one you can't miss. not only people who own the sandercock. >> thanks, phil. >> sriracha, the wildly popular hot sauce maker has been feeling the feet. >> a big deal out there. the condiments manufacturer has been in a hotly contested war of words from legal action from neighbors who claim that the spicy smells that come from the factory are harmful and other states are wooing this company hoping to net a spicy deal and some added jobs. scott cohn is in california with

the latest. >> if you don't know the product by number. it's made by hyfong foods. the news we can tell you they are planning to stay and are looking to expand possibly to texas. what was the pitch and the response. >> we spoke about the texas miracle. we have lower regulations and fair legal system so we're not frivolously sued. >> to comes to texas means having a business that can grow and grow well.

full time 80 jobs. not a huge business, a little bit of a publicity stunt going on here. >> in the beginning people believed that's what it was. during the growing season this factory is full and overall you're looking at 3,000 jobs during certain parts of the growing season. >> is personal speaks to the competition with the states where texas does pretty well. here in this situation you've got a city council that is saying we'll shut this plant down. one of the most desired products stops because in four complaints.

that doesn't happen in texas. we don't have a regulatory structure that would allow two or three people from a community to shut down a plant. that's one. there's a reason why companies are leaving california. doesn't make me feel good if i have a problem with the plant you'll be biased towards the business. >> there's a gentle boston between making sure we've got clean air for our communities and that's a philosophical difference. our regulatory agency is concerned. we're concerned and we recognize in a community where this may end we're going be jobs and for us in california that's critically important.

>> that was a chopper that was going through. >> okay. >> one of the choppers. this is getting a lot of attention, this particular visit and how often do you do this? do you go to other states looking to. >> lure other companies. >> i'm curious about this other competition amongst states. how often do you make these kinds of twins. our governor has gone across the country to court these types of fix. i don't do a number of these

economic development missions but generally we're not doing this on a regular business. are you including tax breaks to your company that relocate to your state and if show. >> how jen rout are they and for how long? >> we do provide certain economic incentives? they can be any number of things, tax abatements and tax credits and relief from tax for property or other types of incentives, and to get a company to move we'll offer an addition number of incentives. >> appreciate t.interesting to see how this goes and if they do expand to texas and our top 14 business rankings are coming

next month. >> love the guessing game involved with that all the time. >> among the states, too. >> exactly. >> now i get it. those were coppers, the kind that you were riding by there. the nasdaq is up 70 plus and the russell 2000 which has been in correction territory. >> and pandora, one of the names going gangbusters on wall street though it's ifn up -- it's given up. >> why do they do it? why mountain dew is the only soft drink-maker that's still

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rally day on wall street has been bucking the trend where there's a rally on the opening in the morning and no fade today, the nasdaq sitting near their highs for the session. people are pulling forward. the real test will be tomorrow. how the pattern prevailed when. >> we'll see what we do tomorrow. >> a lot of big moves at the nasdaq. resurgence in tech. see levels that market technicians watch. trip adviser, one of the so-called momentum stocks on the top of the list. nasdaq biotech etf outperforming

though jpmorgan this morning writing that sentiment across the bio sector remains volatile and an underwhelming first quarter earnings. >> season. the big question is will this trend hold. some of the momentum stocks are still trading at lofty valuations. back over to you, kelly and bill. >> there they are. still sitting about those levels and something else that could impact the company is the beats acquisition by apple. >> is this the time to buy in on pandora. andrew keene thinks there's huge have and lackluster earnings and

slowing mobile growth would really hurt this company. good to see you both. let's duke it out. is the beats acquisition going to hurt them that much. >> we think it's a long-term negative and apple has grown its market share with itunes radio as of december owe beat hits to that later on down the road. what concerns us is mobile rpms. >> flat monthly users and ultimate usage this month in april went from 1.8 billion in march to 1.7 billion.

>> so what about those trends? why do you like the shares here? >> here's the thing. the fact of the matter is 75 million users, look at the market cap, coming in at $65 per user which is pretty trip. they can be absolutely swallowed by a microsoft, an apple or facebook in a heartbeat. there's no way this company is only half as good. >> you going to buy it for that. >> technically is looks like it has bottom. out of the high crout names and google and into exxon mobile and this stock gets 25 and could pop in a heartbeat. i think it's bottomed at $21 and

i think it can go north of 30. >> are we talking different time frames. sounds like you're wanting to trade for a mop. when we upgraded this last year and downgraded at 34. >> a little pat on the back. >> we think it's another leg down. can someone buy pandora? >> sure. >> you can't get 75 million users for that price and someone like apple and microsoft and google can do it over ten years. >> there's 75 million users

built into it. >> when we're talking about radio, what's the opportunity of radio? the opportunity of radio is to go into cars and to cars it's going to take ten years at the current rate of replacing the cars, and, you know, roughly 20% of pandora cars. >> let me ask you real quick. they say there's 450 different attributes and can help match and cater to what you really like. are you saying that nobody -- are you saying for somebody else to do that. they can do it for more money and why you're not worried about the technological advantage but to pay for a company that's mar sin challenged needs something

more than superior technology. you need the ability to monetize. >> got to go. >> and it's what's app, not what's up? >> 15 minutes to go into the clouse close. dow up 119 points. we certainly haven't given up any of the gains. don't bogart my dew. what does that mean? >> sarah eisen is here with more on that story coming up. we're moving our company to new york state. the numbers are impressive.

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welcome back. heading into the close here and looks like a strong start to the trading week for all of the indexes and the russell 2000, as bill has mentioned, this is the going into the weekend, there was this question. would the -- the bigger indexes follow the russell and small caps down, or would the small caps rebound? today you get your answer. they are shooting up to the tune of 2.5%. the dow is up 115, bill. >> you going to drink that? >> no, you go first. >> can i have that? >> that's all yours.

>> mountain dew, just do it. pepsico's mountain dew is the only soft drink that's growing market share right now. >> i'll have to bring that one home for dad actually. sarah eisen, what's going on? >> martin dew has remained remarkably resilient as a brand given the fact that we've seen nine years in a row. it's been a terrible few years for soda sales in this country. just talking to john foschi of jorgan, an analyst for the sector pepsi and coke and says mountain dew is a big deal for pepsico because without it their carbonated beverage sales would look a lot worse and we know that's numbers are under scrutiny right now so the question is why is mountain dew such a bright spot? well, loyal fanatical fan base for one. what pepsi calls the dew nation and pepsi has figured out that the demo, young, millennial males, active perhaps in dewmocracy where they can pick their own dew profiles is the same in the u.s. and everywhere around the world. it's remarkably consistent and

extremely loyal. there is the market share. it's really helped cushion a broad soda slowdown. mountain dew, as you can see, mountain share actually growing, market share, versus pepsi's koala, and what's further is diet mountain dew has outperformed the diet category for the last three years. it also, it turns out, the most popular 20 ounce bottle sold at gas and convenience stores something that an lice lifts say is a big profit driver. can pepsico leverage this brand with new products like the baja blast to help actually offset what they are seeing right now which is a decline in carbonated soft drinks. >> do you think mountain dow will be the number one soft drink. it beats diet pepsi and dr. pepper and snapple. it depends. for me it's a little sweet. >> you haven't developed the right taste for it. >> not in the demo. >> not a male millennial. >> no, i'm not. >> thanks, sarah. good stuff. heading towards the close. ten minutes left in the trading

session. no sign of a letup in this rally with the dow up 117. it's in record tour try and so is the s&p. >> yeah. geopolitics has been one factor moving these markets as well. after the bell, russian president vladimir putin hitting the ice over the weekend and go figure. he scored big. we're talking about him seriously playing hockey. sick goals for the nation's lead leader. the video you have to see to believe coming up. e moment is r. cialis is also the only daily ed tabletmoment is r. approved to treat symptoms of bph, like needing to go frequently. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach, delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision, or any allergic reactions like rash, hives, swelling of the lips, tongue or throat, or difficulty breathing or swallowing, stop taking cialis and get medical help right away.

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welcome back. no sign of letting up. we're getting stronger into the close here. joining here on the market. anthony chan from chase. we watch the blue chips going higher last week, even as the small caps and the momentum stocks were going lower. now everybody is going up. what changed? what happened? >> well, what's changed is more people are believing that this major acceleration of economic growth -- >> which you've been talking about. >> will in fact occur. >> and some of the work shows that when that happens you tend to see the ten-year rate going up on average by 35 basis points right in a quarter that's happening and that's good news for the market. >> what are you doing right now, trying to play the growth stocks, or are you going to try to pick up and scoop up some of the momentum players beaten down? >> we're staying out of the momentum plays and really sticking with quality names? >> companies that can pass on

pricing on to consumers and really take advantage of what's going on in the markets? we think the consumer is going to come back later on in the year and we're pretty well positioned for that. >> i agree with mike. one of the things we're starting to see is the stabilization of gas prices. prices from the peak last year are starting to come down and that's always good for consumer spending. get gas line prices going down. created ed 2.3 million jobs. that's good for consume sflers what happe. what happens if draghi continues to talk down the dollar? does that play into your growth strategy as well? >> emerging markets is where we have positions on there. >> do you see a stronger dollar? >> we'll be being somewhere in the neighborhood of 130 to 132 as the european bank gets a

little easier. >> good to see you both. >> thanks for your time on this. >> we'll come back with the closing countdown, kind of moving off the highs of the session. stay tuned. more after this. okay, does it bother anybody else that the mime is talking? frrreeeeaky! [ male announcer ] bundle home and auto and you could save 760 bucks. alright, mama, let's get going. [ yawns ] naptime is calling my name. [ male announcer ] get to a better state. state farm.

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have the markets shifted fear? all-time high, s&p up 18 points, all-time high. nasdaq even stronger percentage-wise up 1.7%, but the big winner of the four major averages we keep an eye on, the russell 2000 which has been up 2.5% in today's trade. there it is, a gain of 26 points here. bob pisani. what a day. >> and it's not just biotech and internet stocks that rallied, too. all those indexes were up 3%. a lot of people have been short these groups so i think you have a little short covering going here but other groups are underperforming, banks, retailers, home builders, they have all been down on this quarter. and a lot of people have been worried about the infection spreading from the internet stocks to the banks. >> but it was the other way around. >> not only biotech and internet but the groups that were also weak, also on the upside and bond yields moving up.

india doing well and china doing well on top of that. >> big day. does this mean a new -- are we shifting to a new gear on wall street? something we'll talk about coming up here on the second hour of "closing bell" with kelly evans and company. have a good evening. i'll see you tomorrow. and welcome to "closing bell," everybody. as you can see from the graphics there we are going out with markets here apparently setting new all-time highs. i'm starting to feel like a broken record. i'm kelly evans. welcome to the second hour of the program. starting up the day on wall street. the dow and s&p 500 closing on this monday in record territory. what a way to kick off the week. the dow adding about 112 points.

the s&p 500 adding 1% with 18, 1896 is a wonderful level. closing just shy of the 17 hub mark and the nasdaq up. for what to make of it all, let's get right to it with our panel. joining me is our very own dominic chu, nathan bacharach and steve grasso will join us off the trading floor. dom, did traders think this was coming? >> it's interesting because we talk about all the geopolitical risks with the referendums and the ukraine and the tensions with russia and everything else. the economic data has been maybe questionable. you couldn't figure out what was going on. what's interesting about today's rally is that there has been so much skepticism overall about what's been happening with the market and all of a sudden you have a bit of a base, at least building with some of these stocks, the momentum names, the netflix and amazons. maybe there are buyers, not fundamental -- i'm not saying that there's a fundamental case

to boy the stocks what. i'm hearing from traders is if you find a solid base for some of these names that have been beaten down so hard over the past few weeks that it might provide a little bit of support for the overall markets. >> and suddenly parts of this market that were hated. the biotechs and social media names. declines of 20% or more. look at the twitter. look at the facebook, up 4.5% and yelp up 4. are you guys chasing these names? >> i'm not chasing any of these names now. i have to tell you, kelly. we've been saying buy on the dip for so long that any kind of a dip we kind of go, oh, that's a dip. buy on that. so i don't know if we'll ever see a correction because there's so many people saying buy on a dip. i have to tell you though, i think all of this gets down to taking a look and going, you know what? i think i can forget all about the first quarter. i think it's history. i don't think whether it's weather or low interest rates. it doesn't matter. all of a sudden i'm going to go shopping. look at the number on the

consumer. the consumer spent more money even though they earned less. isn't that the american shopper that we all know and love? come on. >> isn't it, kate kell? >> well, it's interesting, kelly. i was just reading david costen's goldman sachs research from friday making recommendations for the week ahead and they talked about how the mentality in the markets, especially looking back at march, was indiscriminate spending. some thought the momentum downwards got to be too strong and wanted to go in the opposite direction and the russell that bill was talking about before the bell rang, this is an important indicator because a lot of hedge funds were using that as a hedge to short some of the long positions they had in the equities market and if we see a big crashup as we did on another day when i was on your show probably six weeks or so ago, that may be significant in terms of actually losses for some of these sophisticated money managers. >> and that's why steve grasso here off the floor. what are people saying about

this market today? >> obviously you touched on it in a bunch of different parts. if everything is rallying, you don't know -- >> i don't know. if you look at it that way. people want to see where the chips fall where the dust settles, and if all those names, i think what people got a little bit nervous about. it's easier for me to figure out valuation on exxon mobile and chevron to figure out where i'm paying too much than it is on a twitter and amazon, so if you can figure it out, then that means that there's a lid on this marketplace. so you actually need those names to pop through 1900. >> a whole mini correction and major that was taking place in some of these sectors. >> what did we mean here? people are keeping risk on the light side and they are actually looking for the trend. we saw a bold move today so there is some direction to the market, but i think people have been in some cases really kicked around by the market this year, and they are moving back to some extend to kind of see what develops. they want to see more than a few

days. >> this is a market that is only seeing a 53% companies of the companies see the revenues rise. it's not as if we're in an environment where we're seeing lots of sales. >> the first-quarter earnings growth looks like it will be the strongest in three years. 8%, guys, and we were forecasting an outright decline. >> yeah. >> about 1% maybe. >> i'm not -- i'm not advocating that i think we pop through 1900. i think most people don't want to buy momo up here and most people don't want to buy value up here. this is the top basically in a lot of people's minds, and if you look at the s&p cash, we kiss that had old high. we didn't break through it. so there's definitely, dominic, a lack of conviction at these levels. >> here's my question. you've got the bird's eye view from the floor. i'm looking up at the boards. it says 635 million shares have changed hands here at the nyse. people all the time e-mail me, tweet me and everything and say, you know what? this rally has nothing behind it, no conviction or volume behind it. put volume in perspective. on a move like today, are you

impressed with the number of shares that have changed hands on an up day like today? >> no. but volume has been a problem going back now for months, years. there's been a volume or lack thereof of volume so you have to look at pricing, right, so if the price is there, it doesn't really matter quite frankly whether it's on light volume or heavy volume. >> here's what i wonder, too. you join us from cincinnati, nathan, and what are you hearing from the retail guy out there. is there a sense that anything has changed, that the mentality has changed and people are putting more money to work in equities here? >> there's great skepticism and that skepticism is born from many things. 80% of this stock on the floor is owned by 10% of the population so when you ask about the broad base of america, many people are just not participating. i think that's the first big mistake that came out of 2008. secondly, i think things are great, and i think we feel that way, but things are great -- >> when you say 10% of the people, i just have to stop you there.

what about pension funds and retirement funds? if you look at how many people do indeed own stocks or have exposure. >> you're right. that number is much higher. >> that number is a lot higher. >> go take a look at the average ball on the 401(k). >> don't matter. all on a relative basis. >> you're not going to feel very good about the economy moving forward. your money doubles. that was two years of retirement at $50,000. >> can i come back -- >> you guys in a way are arguing -- >> you're seeing healthy skepticism. very healthy skepticism. >> you guys are arguing about volume in a manner of speaking. i wanted to come back to that point for a second, like the volume in terms of the number of bodies in the market directly or indirectly. i'm not a market tech vision, but i just thought that dom made an interesting point. are you really saying that volume doesn't matter so much when you look at the prices? i mean, it seems to me we tend to see really volatile pricing like to the downside or upside. >> you sold us on -- >> i think you're right. >> kate kelly. >> exactly.

>> if you sold a stock today, do you care about when you lock in that profit about how many other people sold that stock? >> you don't, but if we're talking about the amount of conviction in the market, whether there's anything behind these moves, as dom was just saying, i think volume does matter. i guess that's the only point i'm trying to make. >> the only reason why i bring this up. again, volume bush you can make the argument one way or the other, but my point is stocks have been -- have been talked about as being underowned or invested for quite some time, ever since the depths of the financial crisis. i wonder to both steve and to nathan's point whether or not people are actually going to get back into the market because they feel solid about the way that this market is moving or the way the economy is moving. i don't know if everybody on main street is going to want to get back into stocks just because we see a record high in the dow. >> i think the record high keeps people from wanting, steve, to participate, does it not? >> totally and also to your point about investor confidence. ever since flash crash, these are the things that the investment community still remembers.

institutions really have no idea what happened with flash crash, so there is a hesitation. i think we've seen checks in the 50-day and checks at the 100-day in the s&p cash, probably due for a check of the 50-day. >> to the downside? >> what will screw the most people up at the single time will be a check of 19 1/4 in the s&p cash and a ratcheting right back down to 1700? >> nathan, a quick word here to wrap this up? >> my quick word would be when you take a look at the last time the market went down to 6% what, did the average investor do when you look at etiev fund flows, went in bonds, not stocks. they are not sold yet, and until they are i think that's where your broad base is going to come from. >> a lot of different points to illuminate what we saw in the markets. >> when we close at record highs, be sure to catch more of steve grasso when we come up with the rest of the "fast money" crew at 5:00 p.m. they will be asking the ceo of first energy why we need to stop focusing on renewable energy.

let's send it over to bertha coombs for a quick market flash. >> check out directv, the stock spiking on a dow jones report that a deal for at&t to buy the company could be struck within two weeks. it would a cash and stock deal, and it would be a premium to directv's current stock price. directv currently trading up there. you can see surging up over $1 a share. originally the talk about h been that this was a stock valued at nearly $40 billion. no word on a price. >> more activity for at&t as we were talking about gogo earlier today. how many panic was there in washington during the start of the financial crisis? >> we're three days away from people not being able to access their atms. >> former treasury secretary tim geithner telling our andrew ross sorkin that it would have been the end of civilization as we know it if not for the bailouts and not everyone is buying it. more from tim geithner is coming up. >> also, morgan stanley slashing its growth outlook for the

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welcome back. timothy geithner is defending his decisions during the financial crisis. the former treasury secretary out with his new book. it's called stress test, and he sat down with our very own andrew ross sorkin to discuss his tenure as treasury secretary. his handling of the financial crisis in 2008 was a controversial one and in the end he defended the bank bailouts. >> the basic problem with the financial crisis which i wrote in the book is there is the rare extreme, really unimaginable risk of panic, and in a panic like what we saw in the fall of '80, just remember what it was like then. we were -- hank paulsen says we were three days away from people

not being able to access their atms. in that context as we saw in the fall of '08 you can't be indifferent to the risk that individual failure creates the risk of collapse of the system. >> what might have been. not everyone believes it would have been the apocalypse if not for the bank bailouts. joining us now with more, naomi prins, the author of "all the presidents' bankers" and it's good to see you and dave zeshos is here on our panel. first of all, what was your reaction to the comments of tim geithner to andrew ross sorkin and in this book? >> thanks for having me on. it was the catastrophe that might have befallen the rest of the economy has been befalling it since the banks were bailed out. when tim geithner talks about atms being potentially three days away from freezing but goldman sachs didn't have atms for the general public and morgan stanley didn't have atms for the general public.

the crisis that befell those institutions befell them because of a credit squeeze, a liquidity tightening that was the result of their own lack of confidence in their own securities and positions. >> and you don't believe that would have rippled through into some more fundamental problem with the capital and liquidity levels at all of the major u.s. banks? >> i think what happened was that the bailout that was created, and it was the standpoint of buying preferred shares which is how the bailout was structured as well as a ton of infusions and loans from the federal reserve, from the treasury department and a bunch of backdoor and different subsidies for those institutions, it did fortify those institutions from having to make good on a lot of positions that they had, but the other way to have done, that which would have been much cheaper, would have been to create liquidity at the bottom of the system, not by security or through preferred shares at bottom of the system where you would have fortified the loans that are underlying the securities. remember, we had half a trillion dollars -- >> guaranteed the housing loans?

>> guaranteed or helped to subsidize to help bring those up to par rather than buying for par the securities at the top of this pyramid where the bottom, were the small loans. securities were $14 trillion, loans were half a trillion. >> dave, do you agree that that would have been, a, a better approach, and, b, do you agree with the statement that geithner previously made that they were three days from seeing no cash available at major u.s. atms? >> i think there's a lot of truth to what tim geithner said and i think we can all monday morning crisis. it was the greatest financial crisis of our lifetime and there were mistakes made, just like there would be in any quick-acting period so i think it's easy toe find criticism, but it's also i think much more important to put a lot of -- give these guys a lot of kudos. they did a lot of things under stress. >> what about the cost of the event noemi is referencing? is that how you would have done it in the fullness of what we know now?

>> now we know so much more and have the experience under our belt. i think she's absolutely right. we should have focused a lot more attention at the bottom end of the credit. the problem was people weren't paying their mortgages and that rippled all the way up to the top, and if you could get to the problem of people not paying their mortgages, you could have stopped the ripple at the top. it's just a very hard problem to solve. you've got, you know, millions of homeowners basically walking away or not being able to pay their mortgages. >> and a lot who were paying and who were -- this remind me. we should have rick santelli in the segment and what would you say? >> you're bailing out part-time that shouldn't be bailed out. >> we were bailing out banks that shouldn't be bailed out. >> nobody knew what a credit default swap until 2008 and we had 65 trillion of them and more than the world's entire economy and after the fact, we should have helped the little guy, right, maybe if you were a democrat in the office at the time you might have said that, but it was so big and so pervasive. this was a house of cards where we weren't trying to replace one

little wobbly card. every card was wobbling and we didn't know how to keep it all together. >> kelly, the passion with which noemi criticizes some aspects of the bailouts and geithner's tenure underscores how strongly people still feel about this crisis and the way it was handled or mishandled depending on your world view. i was at an event recently where geithner spoke to a group and i was shocked in a way at the harsh questioning he endured. >> and this is from a group that you would think would be sympathetic to him. >> and the fact that people are still angry not just about what has happened to homeowners and investors and the lehman brothers bankruptcy. >> and how upset hank greenberg is at aig, that they had to make the likes of goldman sachs whole. >> i covered this at the time and i distinctly remember hank paulsen being very nervous, depending on your world view, being a scaremonger saying the markets are going to fall 1,000 points on monday. this is when bear stearns was collapsing, six months before the lehman event. anyway, there's a lot of interesting post-game analysis.

>> the problem is not that we bailed out the bankers, but it's very hard to get a home mortgage, so that's why it doesn't appear to be equal support or equal treatment as we come out the other end of this. i don't dispute what happened but i sure can see why people would say it didn't really help me. >> quick last word to you, noemi. if you were saying the next time around we're facing a crisis like this, because a lot of people have attacked this from a top level point of view and bank capital levels and so on. what is the way then to be more effectively target homeowners, again knowing the kind of outrage there would be at the time if those who had been whole on their mortgages and faced this problem felt like, well, why is this person getting a bailout that i'm not? >> first of a all, you've got to understand the securities that froze the system. they were about securities that created mortgages, so this isn't even just about helping or helping a small individual borrow versus a large institutional leveraged securities provider to the world. that's part of it, but the other part of this is understanding

how that financial pyramid works, and preventing it from happening again, disallowing the idea that this kind of leverage, these kind of derivatives and co-dependency across the big bank institutions in the future, the individuals at the fed, tim geithner at the new york fed and the treasury department, hank paulson, these people know how finance work and understand structuring and securitization and that was a larger part of this problem than simply the loans defaulting. it was the entire structure that was sitting on top of these loans. >> i'm not sure people had any concept at the time of just how big this thing had gotten. >> want to say one quick thing to a point nathan made. these bankers, and rightfully so, these bankers were bailed out because in some ways, would you argue, or some would argue, that they gave out these home loans too easily back in the day, and that's what ended up causing the crisis. again no, ax to grind one way or the other. that's what the nay sayers would say about the bailout. the bankers who gave the bad loans in the first place were the ones who got bailed out.

>> and leveraged them a ton of times, that's the problem. >> right. >> the impact is still being borne by the banks. i'm not saying i'm crying for them, but look recently within the last couple of weeks news on b of a. they might be looking to $10 billion, $15 billion settlement with the justice department over these issues and jpmorgan paid a $13 billion setman. we see a complete remodeling of the business mix at banks. >> yeah. the banks would make as well is their balanced sheets absorbed losses in hundreds of billions of dollars on the products that otherwise the u.s. taxpayer should have had to absorb. got to leave it there. thank you and appreciate your perspective on this one to. your original point, amazing that we don't have a clear sense today of what happened and who is to blame. jim kraim e and tim geithner appearing at a new york city barnes & noble to discuss tim's new book "stress test." that will be this wednesday

evening. if you can't make it in person you can stream it live on cnbc.com starting at 7:00 p.m. eastern. i should mention i was in this barnes & noble this morning and i said wait a minute. anyway. don't miss it. it will be fantastic event there in union square. let's send it over to dominic for a quick -- >> i'm right here. >> i think bertha coombs has it. >> for a market flash. >> dominic still hasn't mastered being in two places at once. two earnings reports sending stocks in two different directions. elizabeth arden, reported disastrous third-quarter results losing 84 cents a share. the street was expecting the company to break even. revenue came in $40 million shy. the company says it's exploring strategic alternatives. one of the big stinkers was the fact that they didn't have any new fragrances to launch. the stock currently halted, expected to reopen right about 4:30 eastern right as they start their conference call. a different story for rachspace, which posted better than expected first-quarter earnings

and stock up double digits now, more than 11.5%. back over to you, kelly. >> big upward move keeping in the mood of that sector generally today. thank you, bertha. it wasn't long ago many people thought tablets would make pcs go the way of the dinosaurs and now a troubling report on declines in the growth rate. what does this mean for companies like apple and samsung? that's next and donald sterling's estranged wife cannot keep control of the l.a. clippers if his ownership is terminated, but do nba rules really trump california marital laws? we'll hear from a top divorce lawyer on this coming up.

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welcome back. morgan stanley dramatically lowering its 2014 tablet growth forecast from 26% to just 12%. why are tablet sales hitting such a speed bump already, and what does it mean for the companies involved? with us now, our guests to share their views. welcome to you both. lance, first to you. let me put it this way is this something the industry was aware of, that tablet sales were slowing? >> they were 3 million off what they were the year before but they still sold 16 million ipads, don't know which kind so that scares everyone. that's considered the leader even though worldwide they don't have the leadership position in

overall market share for tablets. >> and apple shares were up to the tune of 1%. colleen, why is that? >> there is growth other places in apple. the iphone 6 is expected to do very well, a lot of other products are expected to do really well. i think what we're seeing here is that phones are getting bigger and better. laptops are getting smaller and with better battery life and so the tablet, as we know it, is getting squeezed from 2010 when the ipad debut to 2013, the tablet was really the breakout star and now we're seeing the tablet space go into bit of a more maintenance mode. >> i guess this will mean from the likes of verizon and at&t and they do a nice margin business on people who have tablets because they don't have the telephone component to them. >> right. >> it's a data rich product. >> tablets are sort of a spectrum. she was saying we have the phone and 8 inch tablet. all kind of the same device at

different sizes, and -- and no matter what, you know, by 2017, 87% of connected device sales are going to be tablet styled devices. >> people shouldn't suddenly go long on the old pcs, is that what you're saying? >> nobody is buying desk tops, will still buy laptops. >> i come on the set and i've got my mac here because when i want to pound on keys because nothing says pound on a cos and they very convenient. i always carry my ipad. >> mary poppins, what else have you got? >> nathan's totally cut the cord. it's all about "star trek." this is a tri-colder, going to beam people up, and it's going to be about this size, that's where we're headed. 35% of retail sales are taking place here because this is the only device people have. >> do you think people will be like you where they have a laptop and they have a tablet?

at what point do you get rid of the laptop? >> a commercial for apple, by the way, just saying. >> you know what? >> i'm trying to go on an electronic diet and cut back, really am. >> but you're finding it hard to do. >> i think the tablet is going to go. >> the tablet is going to go? >> when i want to pound it will be the keyboard. >> look at lance's face. >> i have to second that, kelly. >> go ahead, kate? >> not much use for the tablet. i don't have a detachable keyboard, can't stand typing on the screen, whatever. my phone and a laptop, done. >> can't buy a blue tooth keyboard? >> are you saying we're the exception and not the rule. >> i'll come back in three years and you will say lance, are you right. >> tablets are 19% of apple's revenue right now. that's the only thing you need to say about tablets, not that big of a position. iphones are about 56% of their revenue. >> the phonecisment that you cannot do without. it's the actually portable device that you need everywhere

for everything. >> i absolutely agree with that about the phone being crucial, and then also the replenishment level on these things. the phone you'll replace a lot more often and the laptop more often. you'll find a need for that more often than the tablet. the tablet is nice to have that you carry around. >> i do think that's true. some of the replacement cycles on tablets have been slower, more like pcs which has caused many soft slowdown. microsoft will come out with a surface mini next week. they don't think the market is dying out so it will keep growing. >> fascinating how quickly the whole perspective on the issue has shifted. >> i'm going home. >> thanks, appreciate it. the economy is showing real signs of life. economic growth picking up and unemployment down, almost near 6% and consumer confidence at a six-year high so why are democrats reluctant to talk about all of this economic good news ahead of the mid terms? that discussion coming up, and russian president vladimir putin

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welcome back. we start here with a quick market flash. bertha coombs, what's happening? >> elizabeth arden shares are just reopening. they are down double digits after reporting a huge third-quarter loss of 84 cents a share. the street had been expecting the fragrance and makeup company to break even. revenue also coming in $40 million below expectation. the company says it is exploring a strategic alternative which, of course, could include a sale. taking a look right now. shares are down just about 16.5%. kelly, not very pretty. back to you. >> no, it's not. thank you, bertha. the dow and s&p 500 meanwhile reaching all-time highs today, so let's head over to bob pisani for the big movers, the drivers of the action today. bob? >> stocks started up and stayed up, kelly, take a look. no selloff late in the day. s&p 500, transports and the dow industrials all closing at historic highs right now. now, key factor was stability in the most beaten up groups, number one internet and number

two, biotech. both of those up 3%. can you smell or say short squeeze because i think that's a lot of what went on. there's been fears that this weakness that we've seen in internet and biotech could infect the overall market and other parts of the s&p 500, a lot of nay sayers, bank stocks, home builders and retail, they have been weak and banks, retailers had a good day and all this contagion idea has gotten quiet today. another big factor is the interest rates. ten-year yields. yields have been up across the globe here today but when the yield is over 2.6% recently on the ten yirk the stock market has tended to be much more stable. that's exactly what happened today, and finally, kelly, news overseas. when shan is up 2% and usually that will fall through in the global market. there was talk maybe over in shanghai the chinese market would be more opened up. the mainland market to foreign investors, bombay. the last day of the elections

going on, and the indications are that mr. modi, a pro-market proponent may be in the lead. we'll get the final results of the indian election on may 16. how about better economic news? retail sales tomorrow, a lot of retail economic data this week. we get that. we could still stay at these historic highs. kelly? >> bob, thank you. haven't talked about the indian elections enough. they are significant and the talk of the globe and with markets hitting all-time highs again today, i wonder what in fact is driving users to cnbc.com. is it indian, markets generally here and how about that rachspace move after hours? >> not india yet though big things planned for that. it's been mostly about the markets and this is great to juxtapose next to what bob was talking about with optimism coming into the markets and fears of contagion settling down. jeff cox write a note from piper jaffrey and they are warning folks they think there's a stealth correction under way that will result in a steep

slide in the s&p. they think it can go all the way down to 1600. whoa, that's the bad newsth good news right after that they think it will snap back up. one of the major draws for the readers. in the last hour acquiring 120 readers per minute and people are standing in and number two, obamacare is back and some states are rolling out what they have as premiums, in virginia 8% and in washington there was a decrease so that should get the obamacare debate going. my final one was in the money fun fact category. one out of ten americans don't carry cash anymore. >> yeah. dom's nodding over here. >> do you carry cash? >> yeah. >> you probably shouldn't broadcast that fact. i shouldn't have even asked you. >> that's okay. i've got a black belt and all that, but i fall into the 78% that carry less than 50 so if you are going to mug me, i'm not really worth that much. >> good to see you. >> thanks very much.

republicans already control the house. some believe they could take the senate in the november elections. will the improvement economy hope the gop's hopes of controlling capitol hill in november and why aren't democrats touting the economy? >> and move over, wayne gretsky. vladimir putin scores six goals. more on that straight ahead. weekdays are for rising to the challenge.

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mid-term elections six months away and most watchers have expected a gop route. could a an improving economy changing the equations and if so why are democrats reluctant to tout the good news on the economic friend. let's bring in sarah fagan, former white house political director under bush 43 and also with us, democratic strategist tara dow dell. tara, first to you. there is better news on the economy. do you expect that to be a bigger part of the democrats' message going into the fall and if not why? >> i think you'll hear the democrats talk about the economy but not to the extent that one would expect given a lot of the good economic data that's been coming out and i think the primary reason for that is a lot of voters are not feeling it. they see the market going up, but their wages have remained the same, and so if they are not personally impacted by the good news, then it doesn't seem very real to them, and the democrats are aware of this. i think what's on the side of the democrats though is they are

offering a prescription to address stagnant wages, at least part of the prescription. >> is this the minimum wage argument? >> sarah, is that going to play with voteers? is that going to get voters to turn out this fall in support of the dems who still i think are facing the potential losses, are they not? >> they are. democrats are going to lose seats in the senate and the house. the question is how many, and the minimum wage as an argument is fine as part of a broader plan. notwithstanding the policy which is not good policy, but when it is the entire platform of the democratic party, which it is today, it's not enough for voters to get their arms around it as a vision for the country. it's just one piece of what should be a broader more robust economic plan. i -- i do agree with tara though. one of the challenges democrats face right now is they don't want to appear tone deaf. you have these good long-term trends in the economy, but short term, you know, people experiencing higher gas prices,

their wages aren't going up, tara is correct about that, so it's a real challenge for them. >> nathan, i'm not red or blue, i'm green about it comes to this discussion. the color of money, let me be clear on this. just did a proprietary study of 1,000 people across the country and health care is now having the highest approval it's ever had in terms of affordability, quality of care. that thing which i believe, that issue which i believe republicans were thought we'll kill them on this one will find out all of a sudden -- >> do you think democrats are going to run on the health care issue instead of the economy issue? are you seeing evidence that that might be one plank for the fall or is that deemed as too risky as well? >> all politics is local and something we have to keep in context and remember so if you look at some of these states, republican states where democrats hold senate seats, a lot of them, they are seeing a pushback because governors in those states, republican governors, have denied people federal funds for medicaid, denied working people federal

funds for medicaid, so in those states you're seeing democrats starting to be more emboldened. they are pushing back on the issue because, again, health care is part -- it's an economic issue for people. >> if you have to go to the emergency room -- >> i have a question for sara. you brought up a good point whether or not people on main street are feeling it or not feeling it. my question from a markets person, right, is at what point does the economy get to a point where you actually say things are getting better? at what point do the markets get to a point where main street can actually appreciate the fact that maybe hypothetically things are good in this country and reflect that in our political scene and in our voting kind of record? >> dom, i would watch consumer confidence. that economic measure has most closely correlated -- >> it's at a six-year high. >> well, long-term trend is okay, but if you look at the last, you know, since march, the present situation index has been dropping. it lost five point in the last month and when you see that kind

of bumpy ride, particularly at this critical point when things start to bake in in an election cycle, i think that has been real problematic. >> half the country earns $20 an hour or less, and wihichever party says i'll show you how you can participate in the economic system and make more than $20 an hour, that's who will win in the fall. >> you were right on the health care issue. the reality is i'm a partner in a firm, we have 140 employees. we got our 27% health care premium insurance increase today. >> 27%. >> and all -- >> 27%. >> all small businesses around the country are feeling this. >> i'm in an exchange and my prices went up about 6%, sorry. >> it's painful, and as a small business owner, know, these are the kinds of things that people on main street are experiencing weekly, daily, you know, whether it's higher gas prices, higher health care costs. >> got to jump, but it sounds like this is going to be a mid

terms that is about health care policy to some extent. not the economy despite the better momentum we've had. thank you guys for now. >> it's hard to decide which is more interesting when it comes to the l.a. clippers, the action off the court. yesterday the home team fell behind 22 points and managed to come back and beat the oklahoma city thunder, 101-99. that tied the playoff series 2-2. off the court, the tussle for the future of the team now has disgraced owner donald sterling's estranged wife staking claim to the team but nba says no way. just ahead, the state of california could slam dunk the nba's ruling on that story next. russian president vladimir putin also either a great hockey player or everyone else on the ice with him was just playing along. how else did he score six goals? we'll show you the video and let you be the judge when we come back.

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welcome back. the nba the trying to oust the owner donald sterling for his racist remarks. now the league says his former wife will not have the interest to keep it. rob. >> kelly.

well, you're right. shelly sterling speaking out in an interview with barbara walters saying she is a 50% owner of the clippers. this time has been owned by them as a couple since it was bought in 1981. she understanding why the nba would want to oust donald spellering, she did not make any such comments. the nba saying that there could only be one controlling owner of an nba team. according to the nba constitution. that controlling owner is donald sterling. and if donald sterling's ownership is terminated by the other owners which requires a 3/4 vote, that termination applies to all other owners associated with the team and that would include shelly cheryling. that's the nba's position on it. what shelly cheryling may or may

not do about it is another story. donald sterling himself giving an interview to anderson cooper. he in a sense apologized for his comments although the apology was an odd apology. he sort of throws himself on the mercy of the other owners of the nba. asks them to give him a second chance. by doing that, he alascknowledg they have the right to kick him out of the league. >> joining us is california divorce attorney who has seen her fair share of california divorces and can tell us if marital law at all conflicts at all. which mrs. sterling would lose her share of the team. is she going to lose the team. that depends on what the word is is. generally you can fight over everything. right now the dispute is whether

she has an ownership outside of his. california law would only come into play if she has an ownership outside of the property interest through him. if she has a separate ownership that's not linked to his, yeah, perhaps, she can keep the clippers. if her only interest is that derived from his, once he loses it, she will no longer have a community property interest in it because he didn't have it. >> what do you think? >> here's is my question. having followed the story, there are so many moving parts. i guess the issues i struggle with are whether or not any league or any kind of sports organization can mandate certain policies that may supercede other types of rules of states or anywhere else. is this a state where basically if you're a sports owner in california you're going to have to deal with more intricacies of

sports owners in other states in the union. >> i think that could be one of the considerations. but in the end, whatever contract that he signed is going to govern his actions and the grievances. it's what he signed. >> over and above california law? it's a really interesting question that dom raises. would that be the case in the nba or any bilateral contract supercede california law. >> i think it's any bilateral contract. it's whatever the parties agreed to when they entered into the contract. that's going to be the trump card. not any law is going to trump what you signed when you entered into the agreement. >> have you dealt with examples where this has been the case? have you seen this play out before. >> yes. it plays out every day in marital agreements. if they agreed to it, the question is, if they agreed to it, is it enforceable.

what the law is and what the parties agree what the law is. here they're going to be arguing over what the meaning of is is. >> appreciate it. putin wins again. it's a hockey again. the fix may have been in and that story is next. it starts with little things. tiny changes in the brain. little things, anyone can do. it steals your memories. your independence. insures support. a breakthrough. and sooner than you'd like... ...sooner than you think. ...you die from alzheimer's disease. ...we cure alzheimer's disease. every little click, call, or donation adds up to something big. alzheimer's association. the brains behind saving yours.

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so russian president vladimir putin took his talents to the ice. dubbed the nhl. managed to score in six goals and five assists. i wonder if the panel thinks the other team gave it their all. dom? >> i have no comment. i think that maybe with six goals, i mean, that guy is obviously the most skilled player on the ice maybe, i guess. >> i want to know if dave sees any parallels here? >> it's a guy who is -- >> outside our jurisdiction. >> yeah. it's a guy who set up a system that works well for him. we seen it play out really well for him at home. he's coming out of this much

more popular than the leaders who have criticized him around the world. >> he's redefining the word penalty box. who has got the guts to hip check the president of russia? >> or that he has a tens of billions of dollar fortune secreted away or he has connections to oil companies. >> by the way, there are important headlines that even as we are heading into the close with the markets up strongly, this concern is demanding payment from ukraine and whatever is going to play out with the election sunday, does any of this shake the optimism in the markets? >> look, the market has given up on this. this geopolitical story has lost its teeth. >> the markets are the biggest stick that can be wielded off. >> the gas problem is going to cut off home heat or stove heat to many, many people's homes

because of political issues. it's pretty scarey. >> i know. we'll leave it on a scarey note for now. "fast money" coming up in just a few seconds. melissa lee, what have you got. >> we got the former seaoa sear executive. we'll quiz him on what he sees. >> over to you guys. >> "fast money" starts right now. live from the nasdaq market live from times square. our traders are steve, brian, karen and guy. and we have got a ceo who says enough with all this talk about wind and solar energy. it's putting the u.s. power business at risk. first, to our top store. the s&p and dow closing at all time highs. the nasdaq making a comeback. up near 2%. internet stocks and biotechs seeing a nice rebound. like microsoft, ibm also powering higher