2.5% target and the new target of 2.25% because he thinks the global economy is not nearly as strong as people have been given credit for, but, anyway, that's what we're watching. >> good-bye to all the furry rodents out there, our apologize. >> watch out for bikes and naked news anchors. "closing bell" is coming up with stan lee next. stick around. >> welcome to "closing bell." hi, everybody. i'm kelly evans here at the new york stock exchange. >> and i'm bill griffith. lately the technology stocks have been leading the market lower, today they are leading it higher, especially the nasdaq. both the averages -- the nasdaq and russell 2000 outpacing the dow and s&p to the upside just when many feared that the bias was for all four to head lower, right? >> so, in fact, ralph acampora will be here, considered one of the teens, if not the dean of

technical analysis on wall street, and he's still very bearish on the small caps and the technology. he's been forecasting a 25% decline for the russell and the nasdaq, what he's calling a stealth bear market right now. >> 1080, that was the level we were watching on that russell indebt. we held that. today we're rebounding. we'll see what he has to say. separate lit obama administration going on the offense against a cyber security scuffle, actually filing criminal charges against chinese officials, but why now? and what's the end game? especially when the white house is currently under fire from cisco for intercepting equipment. a report on these growing tensions and what it may mean for several companies you may be invested in. >> "the avengers," why the spitderman," "ex-men" all super

hero franchises that came out of mind of stan lee. he joins cleshl today for a very special interview and this is a time when the superhero genre in motion pictures has never been bigger or more popular, and the new "x-men" movie comes out this weekend, and it's the money part that's been a bone of contention for stan lee and many in that industry. i'm going to ask him how much he thinks he has spent on legal fees over the years. they are always in litigation, it seems. crazy. >> not to mention, by the way, jack kirby's case will be coming before the supreme court as well. lots of dimensions to explore on that one. the dimensions of the market heading into the close, an hour to go in the trading session. big merger news, of course. we'll get into all of that. the dow is up about 18 points today. meanwhile, the nasdaq, look at this, up israel .8 of 1% or 32

at this hour and the s&p 500, a reasonable rebound here to start the week of course, up about a third of a percent. 1884 is the level there. >> let's talk about it in our closing pebble exchange, kathy jones, bob from capital saq and michael melnick from southern polytechnic state university is here today, the author question the basics for economics for a modern manager" and a very specific reason to have him on and our own rick santelli is here as well. kathy, you're head of fixed i can at schwab. nobody can agree on why the bond market is reacting lately with interest rates going down and not up. what's your version of why that is happening right now? >> well, i think there are a lot of reasons, you know. the economy has underperformed expectations, not just here but in europe. worries about the slowdown in china, inflation has come in

below expectations until just recently, but my interpretation of tapering is that it could be interpreted as bullish for the bond market. every time the fed has ended qe in the past, quantitative easing one and two, yields have actually come down, not gone up, and now we're tapering, and what we're seeing is yields start to come down again, so it could very well be that the prospect of less liquidity from the fed is what's allowing rates to go down. >> those were often accompanied by weaker performances in the stock market, and this could be a different story this time around, but i want to ask professor melnick who is joining us today for a specific reason. welcome, professor, thanks for being here. >> thank you. >> we are looking back at people who thought the ten-year interest rate might not rise this year, and it most decidedly has not as bill just made the point, but you actually thought that 2.5%, where we are today, is where we'd be. this is back in december so just a very simple question.

why are we at 2.5%. what does it mean and how long do you think this lasts? >> actually your previous speaker did a very good job of describing the reasons, so i completely agree with kate, will you let me add a couple of terms here and expand this discussion a little because as an economist i have to acknowledge that any interest rate consists of two components. there is the real rate of return and then there's expected inflation. if we look at the real rate of return, in the short term that's completely controlled by the federal reserve, and i think that the federal reserve will remain in the picture for an extended period of time. in fact, as far as we can see in the future, but the long-term bonds reflect more of the fundamentals of the real interest rates, and one of the key fundamentals that determines the real interest rate is the productivity of capital. after all, what is the real interest rate? the real interest rate by definition is the price of capital so if we look at the marginal productivity of capital it has been decreasing on

average and there's a number of reasons for that. it tollie has little to do with the recent crisis, the trend of the real interest rates that began before this crisis emerged. >> the demographics? >> not necessarily demographics, technology is the prime reason, because what happens is the cost of capital is determined by the capital to labor ratio. >> all right. before i ask you if this is going ton on the mid term can you tell us how much lower you think traits are going to go? i mean, is this a trend lower, or is this as low as it gets right now? >> i think at the moment, today, we're a little bit overshot, so -- but that doesn't -- but, however, i think in the long term, yes, the rates actually are either going to stay where they are now or retreat further, and here's another reason that both of your previous speakers touched on very nicely. first of all, the real interest rate in the united states will remain low, and this will remain

low for a very long time, probably over a decade at least because the technology changes, so the real rate will remain low. the question really is what happens to inflation? at the end of last year there was a significant expectation that there would be inflationary pressure. >> yeah. >> however, inflation in the u.s. is highly unlikely and one thing that i argued last year and that seemed to be somewhat -- seemed to escape the main media. >> professor, let me go to our rick santelli. trying to read your body languaging a the professor is talking here. you're playing your poker face here, can't read you. do you agree or don't agree? >> i agree on a couple of components. i agree we could have interest rates for many more years but not necessarily for good reasons, and i do think there's a very simple way to place rates where they are at, and the first guest nailed it as well. after every qe we did see rates go down, and, kelly, you get the prize for why, because equities

moved lower, but this qe is different. we keep stretching it out and stretching it out, but i'll keep it real simple. it's all about deflation of equity prices. the next time we see the nasdaq under its february 3rd low, 39 and change, that's when we're going to test 2 1/4. it's all about, in my opinion, the equities and i think we can really summarize the correlation between ten-year note yield, the nasdaq in this country and dollar/yen, almost all identical charts, that's how simple it will be. we'll stay here until the nasdaq cracks that low and then rates will follow. i don't see any linkage for the rest of the year, stocks up, treasury prices up. i think those days are gone. >> bob kaiser, do you agree? you want to comment on that? >> i agree with everything i've heard so far, but there's a definite conundrum here between the 2.5% yield on the ten-year treasury and when you look at forward earnings expectations for the s&p 500, because the

equity market expects much healthier earnings. 10% to 12% earnings growth next year which implies the economy is going to get stronger. if that happens the ten-year note has been locked in a range of 2.5% to 3% for the past year since bernanke started talking about tapering and if the economy gets better we're at top of the range and yields head higher. >> michael, what do you think? >> i've got to disagree with each of those opinions. >> we have a contrarian here. >> you have a contrarian. >> let's remember, this was the consensus heading into the year. >> at the end of last year nobody wanted to own bonds, investors coming out of bonds. at the end of the year it made a big mistakes. investors going into bonds now are possibly making the same mistake all over again. i think we're way too complacent. >> you see the yields going up. >> i see them going up in the second half. >> i think we're way too complacent and we've gotten away from the notion that the market is in the business of fooling the majority of the people the majority of time. we're at that point right now.

i think the economy in the u.s. is far better than what the numbers have said in the first quarter, and i expect to see better numbers going forward. >> if i may interject. >> i expect the bond market will determine the direction of interest rates and not the federal reserve. >> absolutely a great point. professor, i have this question for you. if you believe the u.s. economy is going to be in reasonable shape, why is the 30-year especially, should be sensitive to better inflation and better growth, why is it that yield, almost more so than any other part of the yield curve has come down so considerably, below 3.4% today? >> first of all, define what is a good performance for the u.s. economy. >> 2.5% to 3% which i know is not great. >> 3% in my mind would be a thunderstormal -- historical normal but right now we're in a different reality. this is something that's important to understand. the economy has moved to a different long-term equilibrium so in this new world 3% this year would be great, but i think

that we're more likely to end up seeing closer to a 2% mark. >> okay. >> by means domestically generated inflation will be subdued. >> absolutely. >> inflation, when i go -- we have to understand inflation is measured by a variety of different measures, okay, so one inflation i feel when i go to best buy, or when i go to walmart and buy primarily products made overseas. foreign economies are not in such a great shape right now so as a result they are competing for our dollars here so that inflation is going to be limited. i want to go back to rick santelli's argument. we need to watch the u.s. dollar. the u.s. dollar will be a key indicator in terms of how that inflation comes into the country. it seems to me today we're not experiencing that and we're not likely to see that. >> the dollar against what, the europeans since the world economy is so great and the u.s. economy is so great they are thinking of putting neglect

interest rates into the june 5th meeting. we're semi crippled as it is so why is the stronger dollar good again? >> stronger dollar is the indicator that that the inflation is subdued. >> stock inflation doesn't count. >> the fact that the dollar has been strengthening. >> it comes not because the u.s. economy is so strong but because other economies are so week. that's the reverse. >> we're still the island of prosperity and money flows into the united states. >> the bell is ringing. we have to go at this point. >> everybody else, hank you, always good to see you. have a good day. >> i could have kept that going

for 25 minutes. heading into the close, picking up a couple. we'll have much more ahead on these markets. the godfather of technical analysis, ralph acampora and he's warning that he has a sick feeling about a 25% stock market dip ahead. acampora makes his bear case coming up. >> and using rick santelli's reasoning that could have a big impact on straits as well. we'll talk to ralph about that. >> another monday and another blockbuster buyout, at&t making a $45 million acquisition of directv. how it could affect your wallet and portfolio. >> can barely follow how it shaped out. stan lee, creator of the hulk and the fantastic four, he's

speaking about whether the superhero craze is headed to the ultimate oversaturation flameout. pags

>> denis: plus signs, minor plus signs today, but look at nasdaq, that's leading the charge today. lately you've seen the blue chips would move higher when the secondaries, the blue chips, the technology stocks or the small caps would move lower, that's not happening today. is the technology stocks and the small caps that are leading us higher, not a lot and volume has been very light, one of the lightest volume days of the year so far but we're getting. >> plus signs so far on wall street. at&t making a $48.5 billion bid. at&t down and directv down 1.5%. how does this change the media landscape and who is left looking for dance partners, morgan brennan has that part of the story. >> assuming this deal and the comcast deal square regulatory approval, the names now to

watch, dish network and es have. already we're getting reports that dish may be talking to verdon, the other major telecom that could do a deal such as this, a partner have could go several ways, could be a merger or simply buying wireless's spectrum, something else to watch, how the deals helps regulators. >> another company to watch, charter communications, its their 20 billion divestiture deal with comcast which is also hending approval will make it the lone mid-sized player with two major giants, charter in the

middle and smaller companies so we'll keep watching all the deals and see what the consolidation looks like. >> for more on what this media deals means for investors. >> gene, when the music stops, how do you see the dust ling-ling here? will we get all the mergers through? what do you think will happen here. >> good question. i think it's a good time to get deals through the regulators as there's very little pushback and cleary will they have been supporting consolidation so i think this deal is going to dictate the way a lot of other deals play out in the space. >> let's suppose all of these go

forward, what does this new media broadband world look like in. >> this is ground breaking stuff to be able to get no a quadruple play so the landscape will be as content continues to be king. you'll push your business and continue to grow because everything is going to what we call the quadruple play which is video on the mobile. we'll see the video mobile push. at&t made a big move here with you. a year ago charlie irvin was looking at spint taking over and it's about content and about delivery. >> gene, is this -- is this good for consumers? i mean, i keep hearing that my bill is going to go up to consume media with all the consolidation what do you think, especially if they have to pay for the deals? >> doesn't mean much as at&t and

directv have very little overlap. in the lock run it gives consumers more options and potential cost savings. >> larry says it's game-changing and gene saying it's not that big of a deal. >> this has to be some kind of important hank in the media landscape. it's a big deal that, look, understanding that many believe the acquisition of nidal ayyad is unreasonable. the reality is this is at&t tried to build out its paid tv business. currently at&t has 5 million and directv in the u.s. has about 20 in the u.s. in addition, the sheer size of this deal will allow them more negotiating bother with the likes of disney and t-mobile and

lastly, you know, directv has built out a new latin american practice which at&t wants to capitalize on. >> that's why people -- so from the pint of view of what's best for the consumer to pick one here. should at&t be allowed to go forward, and if so, how big will they be and what does that mean for a time warner/comcast tie-up or other combinations a la dish and whomever. >> verizon we here now. >> may come about because of this space. do we need the new beefed up entities to compete with each other or are we going towards an ole gonebly. >> to consume all this content, there are carriers that went out to build these networks, built the broadband and banded when ile so a lot of times i see

you'll see better stuff for consumers because you'll see more competition. this stuff is needed. what we're seeing here is ground breaking because you're seeing telecom get into pure content and what you're seeing is the deals going through. i think the most interesting part is there's no break-up fee so i believe that that shows you in a dish really wanted to get out of there, but it's all about mobile, you've got to have something to do that and that's whieringan wan aa aan -- this is about a fundamental shift in change in the whole business. >> sure feels like it. a lot of money changing hands, like we said. >> thank you both for that. >> 35 minutes to go until the close here. we're up 11 points on the dow, about 6 on the s&p. 30, it looks like, on the nasdaq and, again, interest rates today remain the focus.

the extent to which you believe that lower rates are supportive of the economy versus warning about them is the essence of the debate happening on wall street right now. >> also, go pro has the cool factor locked in, but is the digital company -- a public offering coming up in a couple of minutes. >> stan lee, creator of superheros and countless of other comic hero, speaks to us and hear whether he thinks super hero are risking overexposure. stan lee joins us next. don't go anywhere. don't go anyw. whon a certified pre-ownedan unlimitedmercedes-benz?nty what does it mean to drive as far as you want...

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marvel, the entertainment company that has been rolling out blockbusters like "the avengers," "ex-men" and "or inman" and on and on, celebrating the 75th anniversary and the name behind those names is here to talk about marvel's successes and the future of couplic book heroes and the media. >> joining us in an, conclusive interview is none other than stan lee. mr. lee, it is great to have you with us. congratulations, look, on all of the success that you've had with characters, and a lot of people are saying can there possibly be another comic book movie, tell vice show at this point. is it too much in your point of view? >> oh, i don't think it's enough. don't forget these comic books

have been popular and growing in popularity for more than 50 years, always featuring the same characters, spider-man, the hulk, the avengers and so forth, so now we can put them on the big screen with special effects and 3-d. i think that they will just go on as long as we come up with good stories for them. >> yeah, and i would say you're not oversaturated as long as the money keeps rolling. in the new "x-men" movie opens this weekend, expected to be the big summer craw. special effects, that's really revived a lot of the comic book characters because you can do things on screen that you couldn't do years ago. you're doing things on your screen you were able to do with your drawings in comic books, right? >> it's incredible. we could not have made successes of these characters 15 years

ago, 20 years ago, but now when you can see spied man swinging from building and building and you would sayre that's him that's doing it and if you see all the other things, even if the stories weren't as good as they are, just the fun of watching those special effects is enough to bring people into the theater. >> i just wonder if you have any regrets about your own relationship or marvel's relationship with the illustrator of all of these loved, universal heros, you know, these characters that were created, jack kirby. >> he didn't create all of them, though he was involved -- the word create is an odd word. the stories were there, and i gave jack the assignment to draw them, and he did the most magnificent job possible, and i don't know what to say. he was a freelancer, and he was paid as a freelancer, and -- and

now. i'm in the same boat as he is. i was a freelancer and i was paid as a freelancer. >> for those who don't know, jack kirby's estate is suing for more royalties on a lot of these characters that came down, and actually this is going to be heard in the supreme court. they are deciding whether they are going to hear the arguments on it as early as next week year. how much money would you estimate, stan, that you have spent on legal fees over the years? this is not the only case that you've been stuck with here. >> well, i personally have not had many things. the companies have had lawsuits. >> right. >> but i'm sort of out of it. nobody is suing me for everything. >> do you think that back in the bay it was so casual and who knew that this much meter could be made by all these superoo characters one day.

>> you're absolute will you right. the companies protected themselves pretty much. >> if you don't mind my asking, we deal in business and money here on cnbc obviously. when a picture like "x-men" comes out and makes $100 million, how much does a guy like stan lee make on this? >> not one penny. i don't get paid for the pictures. >> there's no royalty at all no, licensing fee, none of that for you? >> none at all. i do not own the characters legally, not at all. in fact, it was very funny. i keep looking at the internet and i see people saying stan lee is estimated to be worth $250 million. i don't know who makes these estimations. i sure wish that was true. >> you're 91 years old. i -- i'd be out reading comic

books by now. you're still going at it, why the? >> i'm with another company. i have a company called pow entertainment. >> i know. >> and we're doing movies also. we have one with a chinese/american theme called the annihilator. we have an indian hero and i'm working on a latin hero, and i'm having the same fun that i had when i was doing those characters for marvel. i'm still involved with marvel and with disney, but luckily i'm able to work at pow also and we have so many projects in the work. we have one, an animated cartoon movie, called "stanley's mighty sevens" and i'm actually one of the stars in it. my voice is used. the story deals with me finding some aliens on earth and teaching them how to be super

heros, and it's funny and it's exciting. >> in case there was any doubt that you are the latest superhero in your own franchise, final question, where do you think the great story telling will come from next in today's media age? in other words, comic books were unique creations to some extent of market forces and when was available in the 1960s. what do you think today will generate the next great cast of characters? >> comics will always generate new characters, but there's so many talented screenwriters that are coming up with new idea every day. the more people decide to get into that field and whether the raters have great emergency nation. that's where it comes from. >> mr. lee, always good to see you. thank you, sir, and we wish you well >> thank you so much.

great being here. >> the new "x-men" movie comes out on friday and he gets no money from that. >> incredible. >> news on the nba and l.a. clippers. josh lipton has details. what's going on? >> yeah, this news just crossing from the nba regarding donald sterling and the los angeles clippe clippers. the nba initiating a charge seeking to terminate the ownership of donald sterling. the charges assert that mr. sterling engaged in conduct that's damaged and continues to damage the nba and its teams. the february was will to say the nba says mr. sterling has the opportunity to respond to the charge by may 27. guys, back to you. >> okay, josh, thank you for now. >> 25 minutes to go into the close here. by the way, sugar ray leonard is on next hour.

curious to see if he's still potentially interested in this team. so many people have expressed interest. the dow is up now 26 points. the s&p almost 8 and the nasdaq 35 this hour as the rebound across tech and the small caps continues to some extent. >> ralph acampora sees stocks heading for a 25% move lower, 25%. ralph is a noted technical analyst and what he says carries a lot of weight. find out why he's so worried coming up. >> also come up. >> today we're announcing an indictment against five officers of the chinese people's liberation army for serious cyber security breeches against six american victim companies. >> u.s. attorney general eric holder charging chinese officials with cyber spying on american firms but what's the end game here in the u.s. sort of lives in a glass house. this is one of the hottest stories on our website cnbc.com, and we'll discuss what the u.s. ultimately hopes to accomplish. don't go anywhere. don't go anyw.

. welcome back. plus signs today on light volume, dow up 29 points and the nasdaq leading the way to the upside about .85% hour, almost 1%, the russell 2000, the lag-yard is almost 1% higher. if that were the equivalent on the dow, nasdaq leading the way. what's driving the action. >> been a solid day at nasdaq. steadily climbing higher. as soon as we were able to hold above the levels, the bulls were coming in. take a look at the apple stock, on fire today, trading at a 52-week high and above that all important $600 a share mark, the level that a lot of people look

at and it is leading the nasdaq the most. economically want to mention the biotech stocks, talking about this group so much but if you take a look at what's happening, today biotechs are bouncing back, up 1.5%, we might be at the bottom of the biotech buzz so certainly something to keep your eye on. >> nasdaq may be in positive territory but legendary technical analyst ralph acampora has a sick feeling, got everybody's attention that you have a sick feeling about what's ahead for the stock market. >> ralph joins us now. >> do you feel the same today? >> today was a nice day, hope it's not a one-day wonder, had very nice days and what i need to see, kelly, bill, i need to see across the board new highs, the russell and nasdaq. >> what tells you before we get

there that we're going? why do you think there's a 25% correction coming. >> when we started the year the market was so extreme. had a great year. >> all-time high on the dow on december 31 and then a great first quarter, even stretched it further, you look at charts and i was getting a nosebleed so a lot of them needed to correct. we started to see some of the favorites coming down 30%, 40%, 50%, a mini bear market. i'm not convinced that that decline is over. you get a nice rally on apple and all those today and that's very nice. i'm from missouri. you need to show me more than that. the 25% move lower would be in the momentum stocks and small caps. >> and everybody says ralph is really bearish on the market. no, no, no, if that were to happen i think the large caps

would probably settle down and drop 10% to 15%. i'm still a secular bull. happens between now and october and we'll have a strong fourth quarter. i was going to say the big index or blue chips or whatever you want to call it, the fact that they have held up all right while the names have collected 40%, 50%, is it a sign itself of technical strength? >> absolutely, is and then ask yourself why. at win point it seemed more defensive than anything else. 1994 we lived through something similar, very different of period, but the dow and s&p were in the tight trading range and the rest of the list got crushed and at that time i called it a stealth bear market. >> someone just tweeted and said

what is a stealth bear market? >> something you can't see. >> somebody has his hand in your back pocket. >> how do you factor in the bond market in all of this, everyone thinks it's going higher and rick santelli said as long as stock prices go lower, yield will continue to move -- >> he's a bond guy but i kind of agree with that. by the way, rotation is very god for the market long term. there's a little bit more. >> decline. is it the case that there hasn't been 25% market corrections effectively since the bottom? >> having we learned from that. >> we've had more than that, 10% in two years, i would think, and

that speaks to the health of a long-term market. that means we've got another 15 years. >> another 15 years. so the rumor mongers who say you've turned bearish you say no. >> looking for a correction. >> good to see you, ralph. >> 15 years, and 25 points higher on the dow. >> where do you think stan lee will be in 15 years? >> we also have about 15 minutes to the close right now. as i said, the dow is about 25 and the nasdaq up 8 and the s&p adding almost 35. go pro greerg up to go public. a sneak peek at how much. >> do you know the answer to this question? >> of the components of gdp which is the most important for long run economic growth? >> well, if you don't know the

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welcome back, heading into the close and a pretty strong session. s&p 500 up almost half a percent and the dow up almost 25 points. >> light volume. rather light value. maybe you've seen go pros on people's heads or at least the video recorded on them by adventurist weekend warriors. now they are gearing up to go public. >> a preview of the highly anticipated public offering. >> fans might soon have a chance to buy a camera. the company filed confidential plans back in fep. they expect go -- pro to publicly file its 1-1. >> revenue doubled every year

since 2004 to more than 500 million. synonymous with the action camera market which it dominates with a 5 has% share. whiteman wants to turn it into a media company. can run perhaps on netflix and amazon. >> i think these guys can street chang everywhere. >> why wouldn't you want to watch america's most extreme sports videos. >> it will give them the most clear window into their financials and then they can decide on whether to invest into one of the most talked about ipos this year. >> thank you very much. see you a little bit later and good to have you back in new jersey for a little while.

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seven minutes left in the trading session. the dow and all the major averages higher today. >> the yield on the ten yore has moved up a couple of ticks. joining us is anthony chen, chief economist for chase, you're looking ahead to the european central bank. they say they will do whatever it takes to revive the european economy. a lot people it's the slow european economy that's brought u.s. interest rates down to the level that they see right now. do you think they will do anything to revive their economy this time around. >> no doubt thrill do something and if it's not enough they will do more moving forward. what are they waiting for. >> if you follow the strategy of

draghi it's always been to say you're going to do something and hope that things are okay. more recently you saw the first quarter numbers come in a lot weeker for you've seen the inflation numbers very soft. they will have to show the markets they are serious on doing something. you are very bullish on the u.s. economy and think things will. >> speed up in the second half. no doubt it has a negative impact on the u.s. and other parts of the world not doing well and to the extent that the central bank does more, central bank of japan or in europe, we'll see the tides lifting as we go into the second half of the year. >> can't believe i'm thinking about second-quarter earnings at this soint. will we have a better look at earnings because so much of what we saw the first quarter was

skewed by winter weather. >> if you look at earnings as we were entering the quarter and we were reporting the numbers, the numbers came in dramatically better relative to the very low expectations. pushed down in the basement and came out better and as you get rid of the negative headwinds you'll see things getting better. >> one of the more bullish economists on wall street right now. we'll come back with anthony and have the closing countdown and see how we close out for monday and after the bell it doesn't have all the action of a james bond movie, at least not yet, but a u.s. grand jury chas indicted five military chinese officers on charges of hacking american corporations, big ones. details ahead. how will china strike back? we'll find out when we come back. you're watching cnbc, first in business worldwide. siness world. with centurylink as your trusted partner,

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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. inside the two-minute mark, all four major markets and just the exact opposite of what it's been. these due, the nasdaq and russell have lagged recently while the dow and s&p are moving into record territory and the russell is the better performer today, up almost 1% on the nasda nasdaq. >> up a tiny fraction for the

dow. rick santelli was saying he thinks the bond market reacts to the stock market. >> do you see that? i think that makes sense. >> at this moment what we're seeing is there's a lot of uncertainty out there and as soon as the economy picks up bond needs will start rights. you've got the federal reserve and there's lots weighing down on the yields. >> a lot of people scratching their heads about bond yields. >> today is one of the lowest volume days of the year. >> not a lot of positive cat lifts, not a lot of negative ones either. the important thing, you've got the pandoras, et cetera, all up nicely and biotech now very

stable, been stable for a couple of weeks. market much more stable. >> thank you both. modest gains and light volume. stick around and get the second hour of "closing bell," former champ sugar ray leonard joins kelly evans and company coming up. see you tomorrow. >> thank you, bill, welcome to "closing bell" on this monday. i'm kelly evans, here's how we're finishing up the day with grown arrows, the dow jones industrial average adding 19 points. we were down in the range of 50 earlier in the session. nasdaq adding 35. >> call it 0.9%. finally the s&p 500 up to 1884. the russell was participating and tech picking up.

joining me now is author of the book "young money," our own kayla tausche and dom chu and kate kelly and "fast money" traitor tim seymour. your take, does this mean today that those who thought the dow and s&p was sending the right signal and the russell and nasdaq would follow suit, are they vindicated? >> i don't think it's about positioning. people are concerned about bond market positioning. people feel that crunching yields lower which to me is more. people covering short positions on trade that wasn't working in terms of pushing rates higher. a place where equities then in turn got scared. not any different than wednesday of last week and i think the bond market will probably move somewhat lower, heelds is back up higher. i don't think we'll break down below 2% which is what we were all talking about.

this is a place where emerging markets and risk assets and even japan are catching a small bid and all that is relatively good news. >> that's interesting and tim gets the same sense as i do. this veals very much like classic consolidation. a digesting process that's happening. we knew utilities were the best performing stocks and now they are starting to underperform. knew that the biotech stocks and social media stocks were some of the worst performers going into this particular month and they are starting to pick up steam and what you're starting to see is positioning and rebalancing, not against wholesale rotations, just the idea that people are going to say, hey, you know what, saw some gainers, reinvest in other parts of the market and this is a battleground. not that far from record highs and that's the reason why. >> i knew that the volume hasn't been that strong today, but that shouldn't cover up what is in fact a battleground.

there are people who feel strongly that what the bond market is telling us, that the economy will weaken and others think equities have it right, and if anything the lower rates will r going to be supportive of that. >> the market is having a little bit of an anxiety attack spread over multiple weeks. i was looking at a five-day chart. if you look at mid last week before the david tepper comments that we talked about a lot on thursday and the idea that it's nervous time and there's a little shakiness in the market and you saw a real fall-off and we're starting to climb back and not where we were four or five days ago in the market. i think there's a lot of uncertainty and i know people who are going to see a little more strength and a big fall-off, sometime in the summer and maybe in the third quarter. >> talking a little bit about the potential for some kind of mega correction within, by the way, a 15-year bull market in stocks. >> right. >> and still talking about if. >> almost, kelly, like the whole equity market is a momentum stock. it moves up when there's no news and when there is news it pulls

back so every time you see a very quiet day, the direction in the market, however low the volume, however small the move is to the green, but whenever there is news it goes down. >> so true. >> what's interesting is today could have been one of the animal spirits kind of things, at&t bid for directv, a $50 billion deal but those two stocks were under pressure. >> i think what's interesting about the tepper taper from last week is i actually think it improved sort of the fundamental strength of the movement we're seeing on equities now. some of the skittish money got out, but now we're seeing it stabilize. maybe we should bring tepper out every week or so. >> that doesn't happen in one kay. >> yeah, tim. i don't think that happens in one day. people overdid the tepper comments, and i think they are largely misinterpreted. where we are in markets and what we've seen for the last two

month is people shouldn't be -- >> point taken. i sat in the tepper remarks and he made a number of macro comments that people are also reacting to. his main thing was u.s. gdp not where he wants it tonight. the first quarter was a huge disappointment and he thinks that will be revised upwards but even if we in in the mid-2s, he wants us in the mid-3s and he doesn't feel good if we don't get there. concerned about china and europe aa lot of people share the china deceleration point, if not the europe. >> china, first of all, until we break a band of 48 to 52 on the china pmi people are just watching around with the same da data. >> china is the only major economic indicator. >> look at the consumption stories in china and there's consumer names doing very well

but if you want to sell china fear there's a lot of places you can do it. the reality is the chinese data has been very sideways for a long time. >> so hats market. >> i would just note this really quick, guys. we've had china growth concerns for quite a while, known that europe has been a problem for quite some time and known that u.s. gdp and the jobs future hasn't been that great for some time and yet the market still sits at record highs. >> i have a question they on europe. does it say something bullish, dom, that we're seeing opportunism in europe? i'm hearing a lot lately about hedge funds buying troubled bank assets in europe. >> it seems like this is still a distress play that people have been talking about since 2010. maybe it hasn't made the returns that they thought it would in the prior years and finally feel like this is a bottom or the time. >> that's what i'm saying. >> that things have gotten so bad that you have a few grave dancers for lack of a better word that are finding it valuable to pick up assets. >> maybe you can tell us whether

we're in the middle of a new silicon valley bubble. >> the definitive answer is maybe. we have -- >> well said. >> we have some crazy valuations, but they are mostly in the private markets. public companies are actually trading at somewhat reasonable multi-pals, and i think despite some of the sillier stocks that we've seen performing, you know, sporadically and erratically i think we're actually seeing some of the gas come back into the tech sector. >> today you saw a little bit of that for sure. >> i have a feeling we'll revisit this in six, 12, 18 months and there's great stories that come out of it. right now let's send it over to courtney reagan with an earnings report for us. >> check out shares of urban outfitters, stock moving lower after missing first-quarter estimates by a penny and revenues coming in a bit above consensus views. the stock trading down 3% after

hours. executives will be speaking on the conference call. we'll see if they have anything to change the direction or momentum of the stock at this point. kelly, back to you. >> courtney, thank you you. >> urban outfitters hit here and this one has gone back and forth and lately been more of a darling, correct me if i'm wrong and also campbell's soup today. what's the story with the u.s. consumer right now or is it tough to generalize? >> tough to generalize and the reason why i say that is because you have staples companies, some are always outperforming and campbell soup is not a good story. retail stocks have not been great performers so far this year. they may in solid pockets have had a good run last year and looking at the overall picture for the consumer discretionary or the retail secretary ork this is the week that will tell us a lot more, perhaps not definitively, about whether or not we're seeing some signs of life again, home depot and lowe's and tiffany and all these other earnings. these are cat lifts,

microeconomic and company specific and what you can do is add them to the overall picture. steve liesman has been saying for a couple of weeks now that the economic picture is very mixed at best. some data points is great, some are not. this is something that puts the scale one way or the other and the retail earnings will be key so currently will have her hands fu full. >> a couple of disparate things happening, the big capital raise at deutsche bank over the weekend, more focus on books about the crisis and the extent to which there should have been more relief for homeowners, for example, and more capital levels in the new york books, a big piece on -- >> some asset management conference whether they are talking about the black rocks, vanguards and fidelities are possibility too bug to fail. >> and we're expecting to see some news out of critics in terms of a potential guilty plea

for these money laundering you are use. >> and yet that second- or was one of the leaders today. financials doing okay, tech doing okay. >> when you look at the leaders on the dow, goldman sachs, jpmorgan chase are two of the leaders today. i think the picture there is that investors are looking at these u.s. financials and saying, okay, they got out ahead of this. when they already have more capital than they need and more settlements out of the way and by comparison what's going on in europe makes the u.s. look even better. >> tim, quick last word what. are you watching tomorrow? >> i think naturals are very fascinating. deutsche bank has priced in a lot of this and their need to raise capital because they want to take more risk in fixed income. deutch looks interesting and you buy citibank, that valuation to

me, rotation is all about the valuation you want to own. >> god to see you, tomorrow. catch more of tim seymour coming up with the rest of the "fast money" crew. they will be talking with kate spade, speaking of the consumer, about how bringing the brand back to basics has boosted the stock lately. don't miss that. just discussing citigroup, the company first failing the fed's capital stress test and deutsche bank raising concerns about its balance sheets. do investors need to worry about the health of the banking industry. we'll get into that next. also, not exactly a shocking, countries spying on each other. why is the u.s. filing its first ever cyber economic charges against china? we'll try to get to the bottom of what the white house is up to. a devastating coffee crop disease could be causing a cries spike for your favorite cup of joe. details later on "closing bell." you're watching cnbc, first in business world wide. siness worl.

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deutsche bank raising $11 billion in new capital, some will come from existing shareholders and the rest coming from a somewhat unexpected source. kate kelly has the details. >> kelly, surprising news really

that broke over the weekend but was elaborated on today by deutsche bank. what they are doing is raising $11 billion in u.s. dollars, that mostly from a rights offering where you offer to your existing shareholders a chance to purchase additional shares but also with a cornerstone investment from qatar, the royal family of qatar. some analysts very critical of this. they say it's not enough money. a couple of people, one person downgraded the stock today and others have a sell rating on it in general. deutch has been considered to be one of the least well capitalized of the european bank and one note said they need to raise an additional $5 billion just to get in line with some of the least well capitalized peers. worth noting, they plan to use the money just to improve the capital ratios but also to reinvest in the base. they want to digitize their european operations and add staff on their wealth management side and a big believer in fixed income over the long term which is a big surprise to the banking

community and is throwing his weight behind the investment banking too and sees deutch as the only investment bank with this foot fingerprint. >> and may have a big opportunity in the u.s. for more on how investors arguing deutsche bank's quest for cash and if this is a red flag broadly for the banking sector let's bring in the president of bell rock capital along with the rest of our panel. sass dra, welcome. what's your take on all of this? how symbolic is this? >> i don't think it's that symbolic for the entire sector. it's really specific to detroit bank and we're not concerned. like before you were talking about in the previous segment. look at all the american financials today, the domestic stocks are all doing very well, and so we are ahead of the curve here, and there's plenty of -- there's plenty of ways to make money in this sector and in some cases we think we're still in the very early stages of a bull market for the sector. >> and we just heard, of course, from tim seymour who says he likes citigroup, for example.

>> absolutely in do you share that view. what are your top picks if your world view paps out? >> well, we like -- we like names like citigroup but we don't think from a long-term ownership perspective there's a lot more money to be made in regionals because the impetus for them to be taken over which would be something that would be very difficult for a citi or a jpmorgan so there's still that second layer of oomph of getting a return on investment when you look at it from that perspective? >> cassandra, the fed came out and said they were basically frowning on any bank mergers. it was assumed before the big banks would be the ones buying some of the regionals and then you also have the regionals being more susceptible to a from thening yield curve if we still have yields where they are for the long term. i'm wondering how you think they can overcome some of those challenges? >> how they overcome some of those challenges at the regional

level is through making acquisitions of the step lower than them in the banking structure because there are a lot of banks that took advantage of some of the stock gaps in raising capital and some of those loss share agreements are coming due this year so you're going to see banks that took advantage of loss share agreements saying now this year what now? what are we going to do, and those are the banks that are the right side to be taken over by regionals, and that hides a lot. takeovers hide a lot of bumps. >> cassandra, just curious. what do you make of deutsche bank and comments about being a believer in fixed income over the long term, the first quarter being historically a big story, do you think the fixed income story is over, and do you put any credence behind his commentary? >> i think he's pretty much on the mark because at least our

world view is that rate aren't going anywhere for the next several more years, three to five years, and so if you have that belief, then there's still a long-term, you know, game plan here in investing and building out your fixed income area. >> all right. it's still a call that appears contrarian in this kind of environment, cassandra, thank you for now. >> absolutely, thank you. >> helps explain some of the strength we saw across that space today. >> either they are an inexpensive stock or more fuel for the fire for those that think they are taking the wrong strategic path. >> one or the other. >> yeah. >> survey finds london has usurped new york's crown as the world's best financial hub, from price waterhouse cooper. tweet us your thoughts, new york versus london to unveil your thoughts later in the show. let's send it over to courtney reagan for a market flash.

let's check orbitz announcing a selling stockholder. the underwriters of a 0-day stockhold stockholder. they will not receive any proceeds from the offering, shares down 1.33%, come back a bit but had a fairly appropriate to us drop when the news did come out. >> thank you. >> the white house is accusing china of spying on u.s. businesses. cisco ceo john chambers is accusing the white house of intercepting routers and sending they ever overseas. why is the u.s. literally making a federal case? we'll have a full report and boxing pay-per-view purchases have taken a hit recently. where is the new crop of boxing stars in champ sugar ray leonard is here. we'll get his take exclusively when we come back. ♪

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maybe tom cruise should try the united states for filing its first ever charge for hacking and cisco has its own spying beef with the nsa. i thought maybe you would be tom cruise there. >> not quite. >> this has cross-currents, allegations flying back and forth, five officials of the

chinese military have been indicted. >> state actors who engage in economic esage, own over the internet like offices in shanghai will be exposed for their criminal conduct and sought for apprehension and bruce in be a american court of law. >> unit 6198 apparently operated from this building in chang hi to use fake e-mails to tap intoest whenning house. u.s. steal and solar world fighting unfair trade cases and alcoa and allegheny technologies and the united steel workers uni union wrapping up its campaign. cisco systems john chambers wrote to president obama to say that nsa has been intercepting

products bound for china and modifying them for china. our customers trust us to be able to deliver to their doorsteps products that meet the highest standards of integrity and security. it looks as though, kelly, no one's hands may quite be clean. >> i want to talk more about what is the end game and how does it fit into the big picture. so this -- it would have been one thing if the white house came out with this by itself but accusations coming at a whole other level to this story. is this just business as usual in terms of countries spying on each other. what is your take. the president cakes the chinese atemds to commercially use the

information derived from saying as a threat to the national interest of the united states. it's burly symbolic in that there's no chance that the chinese will extradite these five people back to the united states for trial so the attorney general's estimate that they will pursue these people is a little disingenuous. >> i just wonder, you know, dom, is there a there there? >> you know, i don't know. the whole idea behind this case is that it speaks to relations that have perhaps been improving over the past couple of years. the idea that the chinese are still large investors in the united states, not in terms of

business but that the united states needs their dollars in terms of treasury purchases still speaks to the idea that you do at best have a slightly lukewarm relationship and i'm not sure what this kind of a case does and knowing that nothing is going to happen. >> have i about it from cisco's point of view. >> you also now have a u.s. that's actively, know, whatever the language is, doing what they are doing to the chinese. does that threaten to undermine guess. >> they have been very outspoken about not letting the nsa and others to encrypt into their vimt. >> what is going on in the white house i think is we're seeing a

cyclical or structural declear in the relation this that you should see this indictments as part of a trend of taking a stuffer stand, the president wa -- >> that's going to have big implications for the tech sector. we're talking about a huge cl r clear. you didn't see this kind of outrage when the nsa was revealed to be spying on citizens through phone meta data but when it's their equipment and hardware and they were building back doors into theirs, then they want to do something about it and then there's outrage. >> does make you wonder. >> the charges were brought against nuclear, solar and natural resources companies.

>> alcoa. >> what if some of their intellectual property had been stolen? wonder if they would come down the same way if it's in their own backyard. >> these companies didn't go to the u.s. government. i think the fbi in running its counterintelligence discovered this information and went to these companies and said we have discovered this. we're going to prosecute the chinese. i don't think the companies with large exposures in china in terms of their business would seek to indict members of the pla which they now is purely symbolic. they get little benefit except for a shot across the bough and the risk is that the chinese won't understand that this has been generated by the u.s. government, not by these companies and they would retaliate against these countries, against sysco and others which would not be good. >> is this kind of getting a glimpse of what goes on, or is

this an actual important development with china, for example, companies with nal interests, that we shouldn't be too blase about this. >> companies need to be proactive and put protections together against this cyber intrusion. the specificity in the indictment is slightly more than what was in the mandia report several months earlier, that a lot of this was released earlier and the special physicali speci the specificity would indicate continue the conversations with the chinese on a quiet basis. when you deal with the chinese quietly and not publicly you get better resolution but clearly the obama administration is very frustrated with chinese behavior

so they decided they needed to go public and this is a core interest of america. >> you're quite right. great to have your perspective. >> my pleasure. >> most adults don't have great financial literacy in this country but take a look at these high school students competing for the national economics challenge crown today and up next hear from the winning team as well as the alex trebek of this contest, our very own steve liesman, and just ahead. >> are you telling us absolutely everything? >> not exactly. we're also out of coffee. so out. okay. it may not be that bad but coffee prices could be spiking because of a troubling coffee crop disease. jane wells is brewing up the story later on "closing bell." o" peace of mind is important when you're running a successful business.

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welcome back, earlier today our very own steve liesman co-hosted the 14th annual economics challenge where the nation's top high school students competed in a quiz bowl, think of it as "jeopardy" for high school brainiacs. it was a tough competition and

with us now are the winners, fresh from ringing the new york stock exchange "closing bell," steve liesman with the students from bel-air high school, winner of the adams smith division and from hunter college in new york, winners of the david ricardo division. congratulations to everybody. >> thank you very much. >> let introduce them him. xu from baylor high school and laura zhang from bel-air and jonathan lin from hunter college along with aeksel feldman. did we run the bite. >> set up the winning question. >> we over not given the question. the question in case anybody missed it is which comb nebt of gdp is most important to the long-term direction. >> for future growth. >> do we want to run the sound of the -- by the way, folks, set the scene for you. the score is tied here. what was it, 10-10. >> 11-11. let's run the sound here. >> i think we have it. >> no sound, okay. >> okay.

we'll imagine. >> hit the buzzer. which component of gdp is the most important for future growth, right there. >> investment. >> that was the main one, folks. >> and that's how it went down in what was a nail-biter. >> jonathan, what was it like to win? >> it was really exciting, our first year doing this, first year as a team and everything and we were really excited to come here today and at the end it all came down to that one question but it felt really great to win. >> i have to ask you this question. most kids if they won something would want to go to disney world. you got to go to the new york stock exchange, which was better? >> definitely the new york stock exchange. >> i've gone to disney world already. i'm 18 now so the new york stock exchange is much more in line with where i want to go. >> disney world. >> is this where you want to be in. >> definitely. here i can see my favorite stocks like national bank of greece. >> and you're playing for

europe. >> what was it like to study for this thing? >> spent a lot of time just doing practice tests and learning new material, but it was fun because we bonded over practice sessions and we're all really good friend. >> and the two of you are juniors and you seniors, you're pretty much done with the school year now. >> yes. >> are you pursuing is economics in the fall and if so where? ? i'll be at yale. >> and i'll be studying economics at stanford. >> micro or macro? >> we don't specialize yet? what's your growth forecast for -- >> hold on a second, breaking news. we do have breaking news on credit suisse. eric holder, the attorney general, and irs commissioner john costigan have scheduled a 6:00 p.m. news conference to announce what they call a major enforcement action.

no official word on what that will be, but we believe as reuters is reporting is that this will be to announce a guilty plea by credit suisse to charges of abetting the filing of false tax returns, agreeing to pay a fine in excess of $2 billion. this is something that bipartisan lawmakers on the hill have been pressing the administration to act on. there's a senate investigation. carl levin and john mccain, into foreign institutions that abet tax abeyance in the united states. >> just want to get reaction from our panelists, kate, kayla, kevin, dom, this is very specific with regard to credit suisse. we knew perhaps of issues related to this, but still a surprise, kate. >> yes, kelly. i think we have known there might be something later today, and it sounds like based on john's report it's not official yet that it will be cs but i'm

certainly hearing the same idea and also hearing that the total fines, multiple regulators as well as the doj will likely exceed 2.5 billion which is the expected number. we'll keep the eye out. the u.s. attorney for the southern district of manhattan is known for his tough crackdown on financial fraud, obviously went after the hedge fund industry with various folks associated with s.a.c. capital, he said at a recent speech we should expect to see a major bank plead guilty or perhaps be indict federal they don't plead guilty sometime soon. something prosecutors have avoided since the toppling of arthur anderson and while folks may think there should be charges brought state side, this european bank is a very major one and it is a tough stance by the justice department. >> did we think it would be credit suisse, so focused on the u.s. still prosecuting to some extent the financial crisis or various other things with regard

to what's happening in the 4x market. wondering if this doesn't catch people by surprise. >> with some of those situations you have to prove intent and i don't think prosecutors can prove that banks like bank of america, citigroup were proven to defraud. this is not exactly related to the financial crisis so while it is a marquee instance of this happening, we did get a sliver of a guilty plea when jpmorgan did admit some guilt but that was to the s.e.c. and on a civil basis so we haven't seen something of this and it doesn't relate to the financial crisis. >> there's a look at shares of credit suisse which do appear to be moving slightly lower. we'll be streaming eric holder's press conference live on cnbc.com at 6:00 p.m. now, at a time when boxing ruled the sports headlines, he was

king, sugar ray leonard was a five-time champion and his pay-per-view bouts were some of the sports's biggest money-makers, we'll talk to him about the pay-per-view boxing and we want to know what you think, where is the financial center of the world? your thoughts coming up later in the show. the show. i make a lot of purchases for my business. and i get a lot in return with ink plus from chase

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welcome back. apparently an economic recovery afoot and on cnbc it's topping the daily hot list but is it a recovery that will make you proud to be an american? explain to yourself, allen. >> a little feature worked up out of our european bureau and they took a report by schroeder's looking at how the u.s., when you compare to the rest of the world, we're actually recovering a little bit better than anyone else and the reasons for it are home grown, the shale boom and the dollar and that's likely to be served by domestic demand so the rest of the world used to latching on to our economic locomotive, so to speak, ain't happening this time, at least that's one theory. getting a lot of attention on the website, over 41,000 readers already, pretty good number for a monday. >> our number two story is

basically walmart's big problem right now, its customers. they are too low economic. they feel the customers are so down against the wall there's no discretionary income and, therefore, walmart will never move ahead. fascinating analysis and lastly the fun one, food styling, done by katie little, went out and looked at how food stylists use blow to beches and glue and make it look pretty and look at the real sandwich doesn't look so pretty, a few side by side pictures which are really fun. >> those of us in television know a little bit about that. >> thank you, allen. >> take care, kelly. >> our next guest is one of the most iconic sports legends from a sport devoid of household names like his, sugar ray leonard, championship boxer in five different weight classes and the first ever to do so. thanks so much to see you. know you've got a great big charity event tomorrow and we'll

get to that. want to start with the state of boxing today. in your day marvin hagler, roberto durand just to name a few. where are the superstar boxers and do you think the sport doesn't attract the best talent anymore? >> boxing is always ebb and flow, takes a dive every now and then and boxing is a sport that can jump back with one fight, but i think there's a lot of talent out there. i just think there needs to be more exposure. >> so i think there needs to be more media attention, not that the media attention has hurt the sport. >> not at all, not at all. just the boxers need to be exposed more. did a show many years ago cold "the contender" and that show told -- emphasized who that person is, where he's come from and why he's doing what he's doing so boxing just needs a jolt of electricity to get back. >> a jolt, dom. >> do you watch boxing?

>> i grew up in the mike tyson age and remember all those guys, and they were the ones we always wanted to watch. these days i understand that you had some of these big-name boxers, manny back pacquiao and floyd "money" mayweather. do you think if they went back in time and fought you guys, basically the basis of a rocky movie, would they win and would they have a chance against you? >> no. >> so that can't mean that this is about exposure then. why would the exposure level, do you think, change the level of talent and the quality of these guys today? >> because basically when -- during my era there were other great fighters, other fighters that were comparable to my experience. now you have whether it's

mayweather or pacquiao at the time, they were a step or so ahead from the other guys, from an exposure standpoint and from an experienced standpoint and that has changed. back in the '70s and '80s were great fighters. >> yeah. and by the way, you're still in great shape today. kudos to you for that, i know that's something you're a proponent of, and by the way, know also a little bit about your charity efforts, have a big charity event going on tomorrow. you're working on diabetes. how important is that to you? >> it's very important, kelly, the fact that, you know, juvenile diabetes is really very personal to mow and my wife. we started the foundation -- well, this is our fifth year. my father is diabetic, my friends, their kids are diabetic so it's a very personal journey and experience for me and i

couldn't have done this for five years without my supporter and friends b. rowley and company. they have been amazing. so excited. can't wait until tomorrow. great to hear. >> any interest in the clippers here? >> well, maybe. i'll call you on that. >> okay. >> please do. we'd love to know. that's a story everybody is following, of course. sugar ray leonard great to have you here and good to see you this afternoon. appreciate your thoughts. >> thank you so much. >> something called roya may soon give caffeine drinkers a shake. it could affect how much you pay out for your morning joe and a new report out tuesday looking at financial impact of global warming on food companies. we'll look at which companies may be at risk. may be at risk.yu the most free research reports, customizable charts, powerful screening tools, and guaranteed 1-second trades. and at the center of it all is a surprisingly low price --

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welcome back. let's start here with courtney reagan and a quick market flash. >> yeah, kelly, we've got another mover for you. this one has nothing to do with earnings. check out shares of opthotex. the company licensing its experimental eye drug outside the united states to a unit of novartis. currently trading up more than 24%. back to you. >> feels like march all over

again. thank you, courteney. your morning coffee could be getting more expensive in the near future. a new threat to the central american coffee crops. jane wells takes a look at what's brewing out there. jane? >> brace yourself. you may need a shot of espresso to handle this news. as if coffee prices aren't high enough already, the entire crop in central america and the caribbean is being hit hard by a fungus nicknamed coffee rust which has reportedly caused a billion dollars in losses already. could cut production as much as 40% for the next two to three years for high-end arabica beans. so the u.s. is yumping in like a venti triple shot of caffeine to help because this is a national crisis. it may be happening south of the border, but america runs on coffee, dunkin' or otherwise. the obama administration is giving a total of $14 million in aid through a program at text a&m to find a program to combat coffee rust. but look at this. coffee futures were falling for the second day in a row. this of course is more of a

brazil story which is a huge producer of arabica. last week prices spiked on concerns drought in brazil would impact production. now, that situation may be not so dire. that situation in brazil. looking at coffee-related stocks today. well, let's see. starbucks and we didn't mean dendreon. they don't make coffee that i know of yet, although they are doing testing right now. no. that was supposed to be dunkin'. starbucks was the only one up to date that i saw. j.m. smucker owns maxwell house. i'm going to have more coffee. >> we're going to look up dnkn which is the ticker for dunkin' which should be been in there, not dendreon. but i'm relieved to find there wasn't a big spike today anyhow. thank you, jane. we need some more thoughts on this final thought coming up next. there's dnkn, down about 1%, as you might expect. so it's a clash of the titans. a new study saying london is the world's new financial hub. the panel weighing in on that and coffee, next.

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thanks. clearly you are type e. you made it phil. welcome home. now what's our strategy with the fondue? diversifying your portfolio? e*trade gives you the tools and resources to get it right. are you type e*? welcome back. so we were asking earlier about new york versus london as a financial center. london loving the pwc just named it this in its latest economic competitiveness report.

i wonder if testing their relative coffee offerings isn't the better way of conducting this analysis. >> coffee's a heck of a lot cheaper here than it is -- >> they're big on tea. they like tea, which -- >> earl grey hot. >> i can't get behind. >> i've seen transportation. the london tube so much more satisfying. than the subway system. >> by the way, we're going to close out the hour with some more breaking news. it's going to be a busy week. it's been a busy hour. >> gopro is filing for its ipo as expected. the ticker will be gpro. $100 million. we're just now getting the details. and when we have more we will bring it to you. we've got to get this out on the nasdaq. gpro, its ipo. >> win for the nasdaq here. >> yeah. certainly interesting. i think the big one is alli baba. they haven't decided which exchange they have but this is a notch in the nasdaq's belt. >> and alibaba comes when? >> we're expecting the first week of august. could extend that after labor day. they don't want to go in the

back half of august. it's the first week of august or you're looking at after labor day. >> and now gopro. dom? >> it's interesting. with this ipo picture we've talked about so many times, these ipos have not come out as hot ouz of the gate as they have in the past, in the past maybe 12 or 18 months. but we are seeing select ones do well. again, i mean, i looked at the data. zoe's kitchen came out here and it was a 60%, 70% pop on that one day. you still see some of those big ones out there but they're not as easy to come by as they have been in the past. >> to the point we were making earlier, it's a real company. >> they have a real product unlike some of these other companies that sell social media, games, or what have you. this is something you can actually buy. it's a physical object. and and i think that is going to make it trade differently than some of these more ethereal stocks. >> you can throw a billion-dollar evaluation, by the way, to twitch that google's buying today? i had no idea that was such a big business. >> me neither. i don't watch a lost video game streaming. but apparently there are a lot of people out there who do. >> or watching everybody else. guys, thanks very much. really appreciate this. "fast money" is coming up in

just a few moments. melissa lee is back. melissa, what's on tap? >> hey there, kelly, we're going to continue going through this gopro filing. josh lipton in the house. he's looking through that filing right now. also a cnbc exclusive with one of the top retail performers so far this year and for the past 12 months, the ceo of kate spade joins us in an exclusive. >> can't wait for that one. all right. over to you guys. >> thanks, kelly. "fast money" starts right now. live from the nasdaq marketsite in new york city's times square, i'm melissa lee. our traders tonight are tim seymour, dan nathan, karen finerman, and guy adami. tonight's top story, buying growth. while everyone's talking about the nearly $50 billion deal between at&t and directv, there are two other effect deadlines reportedly in the works, google looking to buy video game streaming service twitch for $1 billion and twitter looking to buy audio sharing company sound cloud. so are all of these tech deals just a desperate attempt for companies to find growth right now? and that, dan, seems to be at least for the twitter move and this audio. >> i don't know if it's growth because there's no earnings in nif these things. but it's really eyeballs. it brings you back to 10, 15