the market always schools you. remember everybody was staying away from bonds, stay away from bonds. right now the ten-year bond has a better total return of about 7% for the year than any of the major stock market brougham terse? >> that's why you've got to watch "power lunch" every single day. >> that would do it for this "power lunch." have a great weekend, everybody. "street signs" begins right now. >> money is cheap, and will stay cheep for a long, long time, so sell pimco. hi, everybody. happy friday. what may by one of the dumbest arguments against housing, the surprise country that may have changed the face of global economics and scary chart on how to create systemic poverty. you have to see it to believe it, mandy. >> what a ride it's been, brian, the record highs earlier this week, they were well into the

forgotten. look how lackluster we are today. in fact the s&p 500 is now on track for the second consecutive down week. brian, the question of the day -- what was the last time we had two consecutive down weeks for the s&p 500? >> you're unbelievable. >> i completely guessed. i do not want to end is onning that in i have note, what is the best ending -- >> fossil. >> summer infant. ever heard of them? you know, they make baby products. it's up about 70% so far this week. >> good one. you got me on one.

>> and i believe you this time. housing starts, by the way, just to bring you more good news, jumping more than 13% in april. there's a lot more to this number than you might realize. diana olick is here. let's lift the lid on this one. >> mandy, this number is made up of two number. multifamily apamplts like this behind me. 250 units going into this hole. it's all going gang busters, single family, not so much. they were up barely 1% while multifamilies were up nearly 43%. everybody doesn't like this number, because it's volatility. well, permits we aren't much better, in fact worse for single families. barely up 1% month to month, and subject blame toss forward-looking permits on the

weather anymore. builders i spoke to in this area and across the nation say they're building on demand. right now they're just not seeing that demand. mandy? >> all right, diana, i'm going to push back a bit, not on the stats, but -- can you answer the question of why, whenever we have a good housing number, but a large part of that is multifamily, people poo-poo the number. it's still a home, still builders, still jobs, in fact maybe it's a positive, because americans aren't buying and building and lives in 6,000 quarter foot mcmansions and using 60% of their takehome pay for living. >> reporter: multifamily construction is construction, it adds to our economy, to our jobs and that is a very good thing. the focus has been on single-family homes, because it's a larger share of the housing market, and because it's been struggling so much. you look in big cities where there's lots of multifamily, that's great, but most of the nation lives in single-family

homes. so that's where the focus is when we look at this housing recovery as a whole. >> that's a good explanation, but before we leave the topic, the president and mrs. obama released financial statements to the public last night. we just couldn't help but nearly choke on this revelation that he and michelle are still carrying the 30-year mortgage at the very high relative rate of 5.6%. that's a whole lot higher than the 4.2% rate that most borrowers can get down. even the vice president and his wife refinanced last year with a new morse at 3.3. shouldn't the president take a little of his own advice. he's been telling everybody to go out and get a re-fi. >> reporter: i'm not going to speak for the president. if i were to think about it, it takes a lot of time to re-fi. you have to get your w-2s automatic your statements. granted all of his stuff is made public, but mr. obama is a busy guy and maybe 5% is fine. we don't know how much equity he

has. we don't know if his rate could be made lower depending on the equity lower. i'm testing the death to income is fine. maybe he wants this higher -- maybe he's using it for tax purposes. who knows? maybe the vice president just had more time to re-fi. maybe he's just too busy running the country and all. >> by the way, i had a 30-year fixed-rate until about threeiers. >> because you were also a busy guy. >> even though it was screaming, still needed a place to live. >> stupid. big dame for j.c. penney's. let's take a look. >> last night you sent my an e-mail saying i will bet you dinner, even though you already

won one, that j.c. penney's stock doubles from yet to stye imthis year, within 2014, will double from yesterday's close. >> that was three months ago, and a bad haircut ago. j.c. penney was trading, the stock did jump above ten bucks, and it's at 951 right now. some viewed it as a strong result. the stock is up 13.5%, but not quite enough for the same guest, mr. jan rodgers. though he probably will get there sooner or later. before you rub it in, because you're getting close and you'll probably get it, to be fair to j.c. penney, were the numbers as good as the market is reacting today? >> well, you know, j.c. penney's did not knock the cover off the ball. >> yeah, really. gross margin was up, sales were

okay. they looked fine. seven cents from -- i'm thinking over the next seven months, i'm good, but i thought it was a fine report, kind of what i expected. the sales were a little better than i thought they might be. the gross margins were fine. they don't look like a company that's going broke, which is where the shorts were. >> jan, the liquidity, which is a fancy word, the available capital and cash that we've got to continue our business, terrifying rate the last couple year, a credit facility. do you think the risk of j.c. penney going kaput, because it runs out money is behind us? >> i actually do. they told us earlier in the year they were going to be even on cash flow this year. they reiterated that in the news press release. . they've only got $200 million next year of maturity due.

i think they're fine. i think they're good into 2016 sometimes. as long as they continue to have sales increases and some margin increases, which i expect for the rest of the year, i think they're good like forever, unless there's some sort of dislocation or something changes. they're also doing very well on the internet. so that business can grow quite a bit for them. i don't think there's a bankruptcy risk. the question now is what are people going to pay for no earnings so far? they're going to pay something for prospective future earnings, i still think ten bucks is in the cards this year. i thought it was at $5, but you know, i think they'll go above ten bucks over the course of the rest of the your. sure, they're in a slow recovery. >> with more than a third of the way through the earnings season for the retailers, jan. you know what? i guess? summary it hasn't been that great, except for the likes of nordstrom, which i this did knock the cover off the ball.

what do you think about that stock? >> nordstrom was fabulous. i say all the time. macy's being the other one. they deal in the upper end of the economy, which is a good place to be right now, the lower end is not a good place to be. we didn't see good numbers out at walmart, we didn't see good numbers out of the kohl's, and a fabulous number out of the nordstrom's. that's kind of what the economy looks like, but nordstrom's is doing a good job. the rack was great for them. online was great. they're about to monetize their receivables, there will be really good about getting something back to the consumer, or the investor when they do that, so i think that they're one of the class acts in retailing, and they have been for a long time. >> j.c. penney, not only on fire today, it's actually -- i'm just realizing this. the best performing stock in

retail over the past month. you know what number two and three are? dillard's and sears holdings. >> sears? >> what do you make of this run of -- i don't want to say troubled companies, but companies that certainly have had their issues. i wonder why they're so on fire. >> i'm not a fan of either dillard's or sears. >> sears is burning assets and bu -- selling assets and burning the -- dillard's has done a good job. they don't make bad investments in bad stories. they basically closed a couple bad stories, they fixed their nifb torrie. they're doing a nice job, but i think they're at the end of the run of that nice job. i'm not pushing that stock. i wish i had been yesterday, but i'm not for the rest of the year. sears is not. sears is a company in disarray that's selling assets to survive. >> hey, jan rodgers, i'm sure you will win your bet. i owe you already one meal, so i

would be happy to take you out for two on the same night. >> thanks. the new neutral. we're speaking with pimco's tony cresenzi. >> this is actually a 20-year chart. it's the rocket-like -- actually that's not a 20-year chart. >> that's like 20 weeks. >> nonetheless, halfway through that 20-year chart it took off. the answer. >> so we actually made the mystery chart a mystery to us, too? >> it's a complete mystery. what happened with that chart? passenger: road trip buddy. let's put some music on.

woman: welcome to learning spanish in the car. passenger: you've got to be kidding me. driver: this is good. woman: vamanos. driver & passenger: vamanos. woman: gracias. driver & passenger: gracias. passenger: trece horas en el carro sin parar y no traes musica. driver: mira entra y comprame unas papitas. vo: get up to 795 miles per tank in the tdi clean diesel. the volkswagen passat. recipient of the j.d. power appeal award, two years in a row.

female narrator: the mattress price wars are on the mattress price wars are on at sleep train. we challenged the manufacturers to offer even lower prices. now it's posturepedic versus beautyrest with big savings of up to $400 off. serta icomfort and tempur-pedic go head-to-head with three years' interest-free financing. plus, free same-day delivery, set-up, and removal of your old set. when brands compete, you save. mattress price wars are on now at sleep train.

♪ your ticket to a better night's sleep ♪ this is the real mystery chart that we wanted to show you, a 120-year chart. around 2003, you can see a incredible bump to the up side. we'll bring you more cleese. >> hey, tony, a short time ago, jim bullard said he sees the first fed rate rise at the end of the first quarter of next year. would you agree or disagree with that deal? >> we disagree and so do others at the fed, even the new york fed opined in giving its forecast, the staff gave its

forecast about what it expects. remember there's a lot of dots in the so-solid rumry of economic projections. there's participants that have a variety of views. i would think of them as betas not alphas. they're not the ones that will make -- that mean bill dudley at the end eventually and hopefully stanley fisher, and of course janet yellen, they're in charge, so don't expect that. the fed has said there will be considerable time between the end of asset purchases and the first rate hike. the fed would be going back on its promise and upset marx. what does upsetting markets means? sdrukz to economic growth. that's part of the neutral thesis, is that the fed can't move quickly or by much in terms of the fed funds rate. so don't expect a rate hike in the first quarter. >> when do you expect that first rate hike?

>> the timetable looks pretty much on, especially after inflation this week seems to suggest a bottoming. call it the midyear or beyond, even toward the latter part of next year, but it's not the timetable we're bringses into the thesis, it's the amount of rate hikes. we'll have three charts i think to bring up this thesis. the new neutral thesis says that the new normal continues. there are major forces continuing to suppress economic activity globally and in the united states, for example, the aging of the population or slow credit growth. we're saying that the policy here, and maybe this is the only thing that people remember from the interview, the policy rate, the fed funds rate, the rate the fed controls will go to 2% in the future rather than the old four. in england is says it will go to three, so remember 2%. in the -- we're saying in this new neutral period, which is part of the new normal.

it would be more like two. it went to 5.25, 6.5 in 2006. in 1995. expect nothing like it. markets, though, still are expecting something like it, and that's part of the thesis that markets can be more stable as a result. >> you know, tony there's been a huge obviously inflow of money into the equities. that's why stocks have gone up. the mystery that i have wondered is who is buying all these treasuries. where do you guys at pimco see the demand coming from? >> well, global central banks remember there's still $12 trillion in saets and half the reserved assets are kept in dollars, their long-term liability managers that have to concern themselves about future liabilities and they have been buyers on the tick up in rates. don't forget yields did move up a lot last year, and remember also, people question the

$64,000 question for 2014 are why are yields falling? a lot of that has to do with the fact that the economy just hasn't been as strong as people expected. also, power yields falling in the face of tapering? everyone thought once the fed tapered that yields would rise, but remember the treasury department, uncle sam, is says tapering. the budget deficit a few years ago is $1.4 trillion. this year about a half trillion. next year about $400 billion. that means fewer treasuries are big issued. >> the fed is buying mortgage-backed securities, it hasn't been as strong as most expected. that means americans aren't object teenaging news mortgages. that kept the supply of new mortgages -- >> very quickly, because we're running out of time, what's your outlook on stocks based on this new neutral thesis? does this mean you're bearish? >> no, in fact our deputy c.i.o.

and her equity team is set to be fully invested of one beta, inert, just fully with an s&p 500, buyers, so we think that higher p.e.s, higher credit -- because the market is priced for 4% on the funds rate going forward, has brought that down from 4.5, but we till ultimately it will be two-ish. >> thank you, tony. >> thank you, ma'am. first time our guest has taken please be quick literally. general motors agreed to pay a record fine to the department of transportation for acting too slowly on the ignition defect, but critics claim that nhtsa was also slow. this was actually the maximum allowed. >> they can't do more than that. some people will say that is not enough, but that's the law, what's allowed right now. nhtsa taking aim, but critics says the top auto safety

regulators is also to blame. we explore that in a special cnbc investigation. >> clarence is executive director of the centers for auto safety. he says just a year after the cobalt came out nhtsa had what should have been ample evidence of a serious defect. >> 2005, gm issues a service bulletin saying the ignition could turn off, yet nhtsa didn't see that as a safety issue. that's an unusual service bulletin. >> it is. there have been over 100 recalls for stalling on the road. that should have been an eye-opener in and of itself. >> drivers were also warning nhtsa about cars unexpectedly stalling in some 260 complaints like this one. my car just shut off. no power at all. i could have been killed. as clues to the faulty ignition switch mounted, nhtsa

investigators repeatedly identified the problem from 2003 to 2014. >> just a taste of what we'll be looking at sunday night in our original cnbc documentary. what is interesting, guys, is when you look at nhtsa's role relative to this entire investigation, the clues were out there. they were out there. it took -- it took an attorney to really bring it all into the light, and it's only now that people are saying, wait a second. shouldn't nhtsa known about it sooner? >> can we take it a step further? during the time that a lot of this was going on, the united states government effectively owned general motors, the largest bond408der, in receivership. why was there no communication between gm and nhtsa? a government agency is trying to oversee the recall, but the government effectively -- it doesn't seem like there was any due diligence done? were they just separate? >> they're separate.

what government bankruptcy and the bailout of general motors, that was cleaning up the balance sheet. let's be clear about this. they put people in charge will, and made moves, but the company was operating as it was. in other words, the government, yes, was an owner, but the government was not calling the shots day to day. this was a quickly done bankruptcy. this was about cleaning up the balance sheet. this was not about, hey, if i'm going to buy a company, let me do full due diligence. they couldn't. >> at some point, mandy, i don't know if you agree with this, at some point somebody from the government would you say, is there anything you need to know about, or hey, guys, just to put this on the radar, we're having an ignition switch, i understand they weren't day to day managing the corporation, but if i'm a private buyer. >> now nhtsa -- >> i would have asked those questions. >> nhtsa is saying, look, i shouldn't have waits until the 7th of 2013, 2014 to tell us about this recall. it is your responsibility to

have told us sooner. it's not the government's responsibility to know everything you're doing. that's a big debate. >> i would argue brian's side to be honest. i think -- we've got to leave it there, and we have your very special show coming up as well. >> sunday night, 10:00. a lot of people think the "new york times" firing of the executive editor was all about gender issues with executive pay. and we're also going to take a closer look at this issue. we have some pay numbers that will get the debate fired up. brian and i will be revealing or stocks of the week just after this. do stay with us. this is kevin. to prove to you that aleve is the better choice for him, he's agreed to give it up. that's today? [ male announcer ] we'll be with him all day as he goes back to taking tylenol. i was okay, but after lunch my knee started to hurt again. and now i've got to take more pills. ♪ yup. another pill stop. can i get my aleve back yet? ♪ for my pain, i want my aleve. ♪ [ male announcer ] look for the easy-open red arthritis cap.

today is friday today, we greet you. treat you. care for you. today, you can come to cleveland clinic for anything, everything or just to get that "thing" checked out. big, small, and yes, the best heart care in the nation. it's here everyday, for everyone. that's the power the power, that's the power of today. cleveland clinic. call today, for an appointment today. i got more advice than i knew what to do with. what i needed was information i could trust on how to take care of me and my baby. luckily, unitedhealthcare has a simple program

that helps moms stay on track with their doctors and get the right care and guidance-before and after the baby is born. simple is good right now. (anncr vo) innovations that work for you. that's health in numbers. unitedhealthcare. in a we believe outshining the competition tomorrow requires challenging your business inside and out today. at cognizant, we help forward-looking companies run better and run different - to give your customers every reason to keep looking for you. so if you're ready to see opportunities and see them through, we say: let's get to work. because the future belongs to those who challenge the present.

brian and i each picked out a starndout name. mine is fossil. down 8% on disappointing guidance for the year. >> my stock, chipotle. down only 2% this week, but only part of the story. earlier this week, shareholders voted against to grant more stock awards to its executives. shareholders spoke out, which leads us to this. executive compensation also at the center of the firestorm over the "new york times" fire of its executive editor. the paper says she was fired

because of a, quote, management issue. new reports say she brought in a lawyer to ask her bosses why she was paid some $100,000 a year less than her male predecessor, a company veteran. that questioning contributed to her firing. mary thompson is looking at ceo pay. >> specifically we're looking at the ceo pay of female ceo. that's just over 4%. that's a number that may be disappointing to a number of people, but few would say they women are underpaid. we looked and if it was available to see that of their predecessors. the highest-pay is marilyn hughesen, a 30-year veteran of the firm. her first year as ceo, just a hair under the $27.5 million made by her predecessor in his last year. next up yahoo's marissa mayer, less than the $36 million when

she was hired away from google, but double the paid to ross levinsohn. 47.2 million when she joined the firm in 2009. carol is tjx's ceo. she's run the company since 2007, and has been there for 31 years. general dynamics played phoebe novokovich more than her predecessor who earned $16.1 million in 2011 his last year, and meg whitman is fifth. she's earned less than her two male predecessors. . one earned about $35 million in the sole year, and before that mark hurd who at his peak made $42.5 million in 2008. so, again, i think the number

that's most troubling, mandy is there are so few women at the top, not what they're being paid. compensation consultants will tell you boards aren't concerned with gender, they're concerned with performance. there are a number of factors at play there. >> excellent point. thank you very much, mary. much more will be coming up on "closing bell." how exactly are you going to be tackling this issue, guys? >> oh, the waves, let us count them. brian, mandy, one of the important issues, mary was talking about interesting numbers. how about seven years? >> that's the length of times it took "new york times" to tag the stories september 11. in other words, bill, the innovation report that a.g. commissioned, which involves the discussion of the strategy is as much of the story as much as the executives involved were paid. >> you have the majority leader harry reid talking about trying to i don't that as leverage to

get this equal pay bill through the senate, and, you know, we'll talk about whether or not there is a need to legislate equal pay, you know, women are making progress, they're not there yet, by any means ifbts there is one idea out there to close the so-called gender pay gap, that is to make executive pay completely public. at least it would force the companies to justify why they're paying x person this amount and x person that amount, and at least it's all out there for discussion. >> it is out there in certain cases. it depends, of course, sometimes reported with a lag, sometimes only with the top five employees. there of course westbound privacy concerned, how many want that made public. >> we know "new york times" has denied that this is the reason that she was let go, but at least it has sparked the discussion nationally, and i think it's a healthy discussion to have. we'll have that on "closing bell." >> yeah, we'll look forward to it. >> see you at the top of the

hour. amazing video coming to us from southern california. wildfires are still burning out of the control. this is video taken from a car in san marcos, california, northern san diego county. in fact i lived in the town next to it. 21,000 eration ways ordered for our residents. certainly or thoughts and prayers go out to them. >> absolutely. >> that is a scary situation out there. what goes better together than -- and professional wrestling? we'll put the two together. and explosion in college tuition prices setting up the younger generation for a lifetime of debt and poverty? the stunning numbers are coming up. i make a lot of purchases for my business.

and i get a lot in return with ink plus from chase like 60,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards even cash back. and my rewards points won't expire. so you can make owning business even more rewarding. ink from chase. so you can.

that corporate trial by fire when every slacker gets his due.

and yet, there's someone around the office who hasn't had a performance review in a while. someone whose poor performance is slowing down the entire organization. i'm looking at you phone company dsl. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business built for business. time for the daily rundown. first of all, it's a bit of a disaster. it's higher just marginally, but making money for only short sellers. ubs rye iterating sell. you don't see that a lot.

their target is 2. you can do the math. l-3 communications getting another upgrade. this one is over at credit sweet. >> another day, another upgrade. the ticker is lll, more importantly maybe, mandy, their target goes to 145 from 122. the average target just -- bamle and credit suite both very bullish. >> you is sink your teeth into this upgraded to outperform. >> yeah, cool ticker. xray. talk about raising margins, their target $56, to the current price. the stock is down 5% year to date. infinally today, the bank of the ozarks, this is a banking company based in the ozarks. i know you would -- >> i would never have guessed

that. >> whirlpool, i found out actually doesn't make whirlpools. little rock, arkansas-based company. their target 67 bucks, stocks at just under 57, so ten bucks of upsite. and shares of darden sharply lower after announcing the sale of red lobster to golden gate capital. bob darden joins us now. what does this mean for the stock? >> well, i think right now, mandy, what we are seeing is a transition into the shoulder base, because i think there are a lot of investors who jumped in on the belief that there's a big catalyst to come. i think at this point we've seen the catalyst, now it comes down to hard work for the company. that turning around its rye maining brands after they sell red lobster. >> we know olive garden and some smaller brands. what now is darden? is it literally 75% olive garden

and that's where you've got to, pardon the pun, butter your bread? >> what i would say, brian, clearly, of the portfolio this company operates, the good, the bad and ugly, the ugly essentially is leaving red lobster. the bad is still olive garden and still struggling. now it's been a cash cow, but the company needs to essentially fix that business in the face of very systemic difficult trends in the industry, which are going to make that really, really tough. so they've got a lot of work ahead of them. >> what would have to happen over at darden to change it to a buy, bob? >> you know, mandy, at the core, we've got to feel more comfortable that olive garden clearly has a path in its future that will drive traffic in the door. i think at this point in time there is so much competition within the industry, consumers have gotten frugal about how they spend in restaurants, and i think until we see some kind of a change in the business that gives us confidence, you know, i

can't go there. >> stay away from it. i mean, i'll be fair to darden, the american public wants giant plates of food and they don't want to spend any money. all you can see breadsticks for $8 or whatever it is. is there any sign that olive garden is close to turning things around? they're advertising like crazy. >> yeah. >> there's little glimmers of hope, but the problem is, brian, we've been so teased by these glimmers before that, you know, i fall back on that old axiom, i'm from missouri, show me. you've got to prove you can sustain that business for more than a month to get me excited. >> do you think the activists already sabre rattling over this stock, bob? >> mandy, i'll tell you, i don't think we've heard the last. i suspect that they're probably planning on what their next move is. >> i talked extensively to the main hedge fund that was going against the sale of red lobster.

so i notice they're not happy. we'll wait and see what they had to do. we thought there was a lot of value in red lobster's real estate. not the core business. would you agree with that? now that's gone. >> no, i really, i don't think so. i think so many problems are really in location which are pretty dated. it's really hard to see a real substantial growth or strong sales within some of those markets, so i just don't know that you can can find of kind of valuation in the properties that maybe they're dreaming about. >> bob daring ton, says stay away. thank you very much, bob. we do appreciate it. >> you bet, thanks, guys. now to our talking numbers segment. it is a disaster of the day here, wwe, the shares are down 42% right now. the to be at one point was down half.

let's talk numbers now. on the technicals, chad morgan lander on the fundamentals. ari, first to the technicals on this. >> what the starts are telling me, we can have a lot of funnels to the 2012 lows. so what i do know, is looking back at 2003, that base tonight seven monies. so i think this will be a while. i'll check back in 6 to 12 months. >> not convinced. what about you, chad?

>> i totally agree with ari. this is a company that when you're explaining, you're losing. after reading the press release, they have a lot of explaining. you have a market cap, revenues of 550 million, and free cash flow that's not existent currently. if the stock got below 10,000 a share, i would start doing my homework on this company, but i would have to agree with ari, that this is a hold at best. >> a hold at best. okay. thank you very much, guys. >> i stayed away from all the puns. >> you were trying so hard. i could almost see the pulse in your neck. >> ari, i will say this. i smelled what the chart is cooking. >> oh, it's a friday, the

weekend is almost here. >> that was awful. >> you can always check on the online edition for more puns such as this. it is in partnership with yahoo finance. >> whether you're in the market for a summer home or just like to gawk at some amazing real estate important, stay with us, dolly lenz will be with us for the million dollar home, and they are summerhouses. tdd#: 1-800-345-2550 ...you see opportunities. tdd#: 1-800-345-2550 at schwab, we're here to help tdd#: 1-800-345-2550 turn inspiration into action. tdd#: 1-800-345-2550 we have intuitive platforms tdd#: 1-800-345-2550 to help you discover what's trending. tdd#: 1-800-345-2550 and seasoned market experts to help sharpen your instincts. tdd#: 1-800-345-2550 so you can take charge tdd#: 1-800-345-2550 of your trading. e

financial noise financial noise financial noise financial noise revolutionizing an industry can be a tough act to follow, but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars

in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. sfx: sounds of marching band and crowd cheering how's that for an encore? sfx: sounds of marching band and crowd cheering so, i'm walking down the street, sfx: sounds of marching band and crowd cheering just you know walking, sfx: sounds of marching band and crowd cheering and i found myself in the middle of this parade honoring america's troops. which is actually quite fitting because geico has been serving the military for over 75 years. aawh no, look, i know this is about the troops and not about me. right, but i don't look like that. who can i write a letter to about this? geico. fifteen minutes could save you fifteen percent or more on car insurance.

yell, cnbc's million dollar home competition is back. seven homes going head to head. and since we're just weeks away from summer, yay, all the homes are located in favorite summer destinations. >> here's how it works. in each show, two $1 million homes face off. the winner moves on, the loser eliminated. a champion will be announced on the "closing bell." >> diana olick and dominic chu are this hour. >> this three-story classic beach-style home sits on about

half an acre with multiple decks. while this area used to be a favorite of pirates, the real bounty is the ocean view. >> inside the home boasts 3400 square feet of living space. it has multiple seating areas, both inside and out, perfect for the after-beat party this home has plenty of room to bumpal you have your beach guests you'll want to soaks in master suite spa. this offers every amenity for the act i have been lifestyle, the pool, the hot tubb, the horseshoe pit and beach volley ball right in the backyard. all for the asks price of $1,049,000. real estate is all about location, location, location. this condo does not disappoint. it's in the heart of a downtown beach district, just a short walk away from some of the best

shopping, dining and nightlife in the entire world. this 1450 quarter foot hop has an open concept kitchen with italian marble, custom cabinet and state of the art appliances, all with a gorgeous ocean view. every day is like a day at the spat in this two-berm, two-bath property, with ample closet space and master bath feature a massive shower and jacuzzi club. but summers in this town are all about the beach, which is right outside your front door. all of this could be yours for $974,000. >> well, i know it's not the gold coast in australia. the gold coast equivalent, florida, south beach? >> it looks like south beach. >> you really got it. wow. >> he had the art deco building behind him. >> and the palm trees. >> this is the most obviously art deco, but truly that was really good. >> by the way, your dolly lenz,

which we should probably say that. >> he needs. >> super broker. >> two terrific places, right? outer banks north carolina is where diana was. ocean view, huge house, or we have the cozy condo. on ocean drive. i have to tell you, they both have wonderful things to say about them, right? >> the cozy condo, every day is the happiest, except at 2:00 a.m. when everybody's partying outside your door and you can't sleep. otherwise it's great. hot market in miami. >> which do you think is the better bang for your buck, though? >> see, that's the thing. better bang for the buck, no question it's miami. there will always be a buyer for that. right on the ocean, yes, yes, yes. >> no, no, no. >> yes, very often inventory. >> i don't think this is a fair fight. >> dom could not even find the place to film. >> why is it not a fair fight? its a totally fair fight. >> no, it's not. >> the guy wins.

>> they are totally -- well, first off, that's great, but they are totally different markets. south beach will be for single people or couples. the other home in nags head, six bedroom. the family will not go for it. >> i drag my kids to the south beach. >> buzz you're a fancy new yorker. >> you go to -- >> they've got mosquitos. it's not the same. >> dom wins. dom wins. that's round 5. plenty more to come. let us know if you -- >> they with tweet us. >> sorry, diana. >> you can catch dolly on "closing bell" where she will crowd the winner. how about calling them student mortgaging. it's america's trillion dollar crisis.

in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason

serious investors are choosing fidelity. call or click to open your fidelity account today.

true business-grade internet comes with secure wifi for your business. it also comes with public wifi for your customers. not so with internet from the phone company. i would email the phone company to inquire as to why they have shortchanged these customers. but that would require wifi. switch to comcast business internet and get two wifi networks included. comcast business built for business. consider this insane statistic. at the current rate of price increases, the cost of a degree from a four-year private college will soon be more than the cost of the average house in america. four years, probably 22, 23, 21 years old, effectively owing a

mortgage. your next guest says the growth in both that and auto loans are probably the best way to create what he calls systemic poverty in the u.s. bring in jeff steiner from al hambra investment partners. read your piece with great interest. thought it was very thought-provoking. the only thing about student loans it provides hopefully some measure of income and job protection down the road versus other debt which tends to, you know, just eat away. is there any defense to this level of debt or cost of college? >> thanks for having me on, prion. i think there is. i mean, look, college is supposed to be an investment for human capital and the workforce in general, so there is positive benefits to going to college. the question is whether or not we're going overboard and to what degree we need to invest in kids going to college at this rate. >> yeah, and i think that it is clear that you will make more money in your life if you have a college degree than without it.

but the -- >> no question. >> the rate increase that you showed of college tuition was mind-blowing, and you factor n the top ten colleges are now sitting on more than $100 billion in their endowments. is this -- i'm sorry, i love my college or any other ones, money grab by universitiess? >> well, look, colleges are responding to incentives as everyone would and the more money available for college will produce this kind of behavior. that's just natural economics. colleges are responding to what they see in the marketplace tremendous demand for college services, and the availability of students to finance it with this growth in student debt. if you look at student debt from the government in the last four or five years, it's been something like $630 billion increase. that's a lot of money flowing into colleges. >> $630 billion increase in student loan debt since 2000. in five years more than $125 billion a year increase in

student loan debt, staggering stuff, jeff. we understand though financial crisis, some people went back to college. what about auto loan? i was surprised to see you lump the two together. why did you do that? >> well, traditionally credit has flown into the economy through usually mortgages and credit cards. since 2009 it's been different areas. it's been leaking out of student loans as we just discussed and also auto loans, so the idea is that credit is flowing into the economy, just in areas it may not have done before and where it's most prominent now. >> any sign that this is getting better, jeff? at some point the level of student loan debt is going to be unsustainable. >> it's going to be unsustainable. >> if it isn't already. there are colleges where the default rate on the loan is greater than the graduation rate of the student. >> yeah, right. part of it, you know, they don't really have much of a future to look forward, to at least in the short run here. economic growth just hasn't kept pace, so, you know, if you're a student that's in college, what are your choices? >> yeah. jeff, a real pleasure.

in my twitter feed. i urge everybody to go take a look at it. pleasure on the show. >> coming up next, mystery chat revealed. your final hint. it's the best performing market in the world over the past three months. let's put some music on.bud. woman: welcome to learning spanish in the car. passenger: you've got to be kidding me. driver: this is good. woman: vamanos. driver & passenger: vamanos. woman: gracias. driver & passenger: gracias. passenger: trece horas en el carro sin parar y no traes musica. driver: mira entra y comprame unas papitas. vo: get up to 795 miles per tank in the tdi clean diesel. the volkswagen passat. recipient of the j.d. power appeal award, two years in a row. predibut, manufacturings a prettin the united states do. means advanced technology. we learned that technology allows us to be craft oriented. no one's losing their job. there's no beer robot that has suddenly chased them out.

the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job done. so i can reach ally bank 24/7, but there ar24/7.branches? i'm sorry, i'm just really reluctant to try new things. really? what's wrong with trying new things? look! mommy's new vacuum! (cat screech) you feel that in your muscles? i do... drink water. it's a long story. well, not having branches let's us give you great rates and service. i'd like that. a new way to bank. a better way to save. ally bank. your money needs an ally. [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays...

that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. with the mobile trader app. and i get a lot in return with ink plus from chase i make a lot of purchases for my business. like 60,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my points. travel, gift cards even cash back. and my rewards points won't expire. so you can make owning business even more rewarding. ink from chase. so you can. today's mystery guest was sensex. seema mody is here and people

are hoping that this new government will usher in less red tape, less corruption and more open macro economic policies. >> he used india's lists. he's listed as the campaign that really sold and infused this excitement amongst citizens and that's why you're seeing the rally in the sensex. the big question is will he deliver on this promise of reform? that will be the catalyst for stocks to remove higher. >> what kind of stocks do you think potentially will benefit? >> what i'm hearing some of the consumer-led companies like pepsi and starbucks and yum brands could benefit from higher growth in india. actually higher companies that could benefit. an updated farm subsidy that would be priced at an attractive

level. >> anyone interested, a number of indian-based ones as well. >> buy them in rupees because there's currency rick, too. don't forget that. >> yes. >> thanks for watching "street signs." not just today but always. >> "closing bell" is next. see you monday, folks. welcome to the "closing bell." here on a friday, as the hour begins seeing a little bit more of a rally than a lot of the action in the session today. >> i always said i wish we could bottle that feeling we have on friday and parse it out the rest of the week. i'm bill griffith. today's market is being viewed as win by many investors. this, of course, on the heels of twouc