standing ovation. what? >> unbelievable, unbelievable. the kind of thing that happens in taiwanese politics. >> exactly. >> okay. thanks a lot. >> "closing bell" up next. see you tomorrow. >> welcome to "closing bell." i'm kell evans down here at the new york stock exchange. any close higher for the dow, the s&p 500 today, bill, it's another new high. >> not happening though right now, but we have an hour to go. >> have an hour to go. >> very early in the trading day. >> we have the most important hour of the trading day, and we're down 19 points so we'll see what happens on the dow and other major averages. >> the other stories we're following. automakers blowing out month of sales in may. numbers for general motors in the midst of the massive recall controversy posted its best

month of may in seven years. what does that say about the state of america's of discovery? it may not be as clear cut as it may seem. stay tuned to a special report behind those numbers. >> love that story. another botch by bank of america. this time sending the wrong data to regulators making its private stock trading platform look larger than it actually is. this error coming a month after making a mistake in its stress test numbers that. resulted in the bank's suspending a planned dividend hike. how does this happen? and who, if anyone at bank of america should be held accountable? we'll take a closer look. >> cut their trading volume literally in half, that's how much they overstate it had consistently. >> here's a good reason not to be sleepless in seat. the city council passing that $15 minimum wage, making it the highest in the nation by far so who does this really affect? how many workers? how many businesses? the answers may surprise you.

i always love saying, that the answers may surprise you. >> you deliver it so well. in the markets, about an hour to go and the dow is off 20 points. the s&p 500 is fractionally lower and the nasdaq is off 7, but if we do turn around this hour it will be record highs for the dow or s&p 500. 1923 is the level on the broad index at the moment. >> all right. let's talk about all of this in our "closing bell" exchange today. we have kimberly foss from imperial wealth management, author of "wealthy by design," and rob mar tenstein and ron weiner from rdm financial, rob morgan from v to v associates and our own rick santelli. kim, can you hear me hock? >> yeah, i got you. >> oh, okay, good what. are you expecting this market to do here? drifting along and talking yesterday don't have a lot of volatility, just inch ever higher, moving up, new all-time highs, what are you thinking about the market right now?

>> you know, i think we're cautiously optimistic for the long term. the markets are moving higher and taking some profits, but i really think that they are looking at and waiting for the ecb numbers, the policy decision on thursday to come out. meantime, guys, you know, the best offense is a great defense, and that is a well-diversified portfolio, globally diversified, and, you know, completely invested >> you know, rick santelli, today it looks like we're seeing yields on the long end start to inch up a little bit, ten-year and 30-year in particular. is this -- how important is this in your mind? i mean, is this -- can we put the short squeeze, if you want to call it, of last month behind us? >> well, you know, short squeeze, short covering, all those are very conventional wisdom phrases. i think it's way easier than that. we saw yields move down to 2 hadn't 33. we have big data coming out. wednesday jobs, thursday ecb and friday jobs and that doesn't

even mention all the other data tomorrow, trade deficit, non-manufacturing, the service sector ism new. i think what you're doing is you're seeing some of the most recent positions getting taken off, taking the slack out of rope, the breakout point was 2.57, always add three basis points, 2.57 to 2.60 is the area we should come back, to right about where we are. haven't traded intraday at a 2.59 yield in three weeks but today is a red letter day for another reason. i actually am pleased that the lights of esther george talking about courage to tighten, a big research paper, came out of dallas fed, and you know what they have discovered is that when you keep rates at what they call the zlb, zero lower bound, it creates an additional amount of confusion and uncertainty and creates a negative feedback loop. years ago traders on the floor said -- >> let me ask you this. >> let me ask you this, rick,

because there are people having this conversation every weekend, every night. should somebody take the opportunity right now then to refinance or to get that 15-year mortgage instead of a 30-year mortgage say? >> absolutely, absolutely. we're fighting over the last coconuts on gilligan's island. if you're looking to refinance or buy a house, do it, but what this fed research says is that when you put rates at a place that is associated with crisis, people keep the crisis in their minds. >> yeah. >> so the enemy are them. they are the enemy, and i'll tell you what. i think we're starting to see a sea change in this direction, and i can't tell you how optimistic that makes me that the fed is actually contemplating the courage of normalize okay interest rates. >> we will see how that works out. ron weiner, you know, one of the reasons or maybe a main reason that the ecb is expected to cut rates on thursday, among other things, is because of the economic weakness over there but

you want to look for international exposure in your portfolio right now, right? >> about 13% what have we own now isn't national in our moderate portfolio, but the vast majority of our international and emerging markets comes from owning large cap u.s. multi-nationals. we're real comfortable and know they are full-valued and know they are probably not going to go through the moon and emerging markets are cheaper and europe is cheaper than the u.s., we don't care. you know what? it's a lot safer and a lot less volatility just being in large cap u.s. but we nibble around the edges around 12%. all these low interest rates around europe beats me why that's so, and it scares me. it's kind of saying that there's no place else to have money and that people are a little scared or buying spanish treasuries instead of u.s. home loans and emerging markets are moving up because of low interest rates. we don't think that's a good reason to invest for the long term. we'll stay in the u.s. for the most part, and we'll stay with

large cap multi-nationals for the must part. >> rob bartonstein, what about mortgage rates? are they headed up from here? >> well, i can tell you i think there's a lot of reasons that we've been told for a while that interest rates are headed up and everyone should get ready for that. everybody paying attention is also hearing the former fed chairman ben bernanke out on the lecture circuit telling anybody who can afford to listen that he doesn't see the fed rate getting back to its average 4% in his lifetime, an i'll just remind you that he's 60 years old. i think there's a lot of other immediate pressures on rates. rates are trending down. i think that the supply is treasuries is moderating or dwindling because of shrinking deficits in the u.s. and a whole host of our countries all the way down to japan at .56 on 10% yields are lower interest rates in the u.s.

i think there's pensions that have to park large chunks of cash and all of those played into the back end. we may not see rates up any time soon. >> rob morgan, that's why you're weighting stocks over bonds right now, right? >> absolutely, bill. i think that certainly we'll enter a rate hythe hike cycle at some point but it probably won't come until next year and typically in a bull market of stocks, stocks continue to rise on average a year after the rate hike so i see the bull market continuing with legs even though we're near record highs and you're actually right on that. >> growth or value? >> well, i continue to like small-cap growth though it's been really kind of a risk-off year so far and large-cap value has so far done better. i think the dollar will continue to go up. that probably hurts the multi-nationals a little bit and

helps the small caps, and i think more of what i like consistent growth is more than momentum growth. >> also to friday, added 288,000 last month and. expected are for a two handle again this time around. do you think that the action we're seeing is reflective of people positioning for a stronger number again for a strong read iing? >> yes, on the surface but whether it's north carolina or the united states of america, big jobs numbers really still hide fact that we have less and less people actually working which is really the only part that's important. back to rates and mortgages, i agree with ben myricky. i've always agreed with him. i don't think rates are going back up, but that still doesn't mean you're supposed to dance around the raindrops on your mortgage. even if rates do not go up, the amount that you're going to be risking if it goes down just augers to make the move sooner rather than later. >> all right. there you heard t.mortgage

recommendations from rick santelli. thank you all. good to see you. thank you, good luck, kimberly foss, with the new book. thanks for joining us today. >> we want to update you on a story that has the whole nation talking. >> steve handlesman has more on the army's potential investigation into former prisoner of war bowe bergdahl. >> i think it's beyond potential. the chairman of the joint chiefs and the pentagon confirms it says there will be what the pentagon calls an inquiry into charges of misconduct on the part of bowe bergdahl that allegedly led to his disappearance and being taken captive by the taliban and soldiers who served with bergdahl clearly will be all together happy to help in this inquiry. it's now a public shaming by one after another of these soldiers who are coming out. i spoke to one today, who said of the six who died during the search for bergdahl, two were his friends. he says these six would not have

died, in his opinion, he says bergtdal didn't pull the trigger, the bad guys, the enemy, the taliban killed these soldiers, but it was because he said all the operations shifted into a search for bowe bergdahl who all the soldiers on the scene there say walked away. they said they were trained in basic training that they will never be left behind. there will be a forever search if they take their weapon and hair body armor which is why bowe bergdahl did not do that, left behind his weapon and walked away and there was a search anyway and six americans lost their lives. president obama in poland today aware of the controversy that leads to more lawmakers here on the hill and more in the public no doubt upset at his prisoner swap for bergdahl said, quoting the president, whatever those circumstances turn out to be, meaning the truth about why bergdahl disappeared, we still get an american soldier back if he's held in captivity period, full stop, but there's no period

and no full stop, bill and kelly, on this story. republicans up here say they will investigate, and they sense in this a -- an issue they can use against democrats and the president in this election year, maybe an issue that's stronger than benghazi. back to you. >> certainly pressure. >> that's for sure. >> steve handlesman, thanks for joining us. >> see you later. heading towards the close, 40 minutes left in the trading session, any positive close for the dow or s&p would be a new all-time high. not happening yet. the dow is down 22, the s&p down 1.75 points. >> see if we can make a comeback and call them the comeback kids. some of the year's biggest losers are now some of the biggest losers in the second quarter. dominic chu will round them up for us coming up. >> stocks at or near record highs, so why does new data show that individual investors are now retreating from stock trading? we'll look at whether that is a red flag for this market coming up. >> and what's going on at bank of america? first it made a major mistake on

its capital plans submitted to the fed, now it says it miss taken takenly downsized the size of its trading platform. is anyone being held accountable? that story just ahead. ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ she can print amazing things, right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. ♪ my mom works at ge. ♪

welcome back. the u.s. and france light lately have not seen eye to eye from the crisis in syria and general electric's attempt to buy a french energy company. >> now a potentially massive bank fine may push those two countries further apart. michelle caruso-cabrera has details. >> reporter: france's foreign minister went on television to criticize the u.s. government over reports, thus far not company, that french bank parawho is may face a fine for evading sanctions against to sudan and syria. he said, quote, if there is an error or violations then there's the fine, but the fine has to be proportionate and reasonable referring to the $10 billion figure saying these figures are not reasonable. he went as far as to say a fine this big couple pact trade talks ongoing right now between u.s.

and france focused on agriculture and electronics. word s reports that front hollande will bring up the reported fund when president obama meets with him in paris in two days. president obama is traveling to france for the commemoration of the d-day landings in normandy during world war ii. also likely to come up in that meeting, general electric's attempts to buy alstrom's assets. they encouraged a german company to bid for the company instead. it would wipe out all the profits from 2013 and impinge on their ability to pay dividends and raising questions, kelly and bill, about whether all the banks in europe need to raise more capital in case there are no fines because there are great concerns about whether the european banks are undercapitalized from the get-go. >> we've heard some u.s. banks concerned about retaliation so that what happens, tit for tat perhaps in this case. we'll see. thank you. >> thanks. >> on the domestic side, speaking of banks here, another

botch for bank of america weeks after revealing it made a mistake on its capital plans. that hit the stock price because the new dividend plan had to be scrapped. the banks now admitting it incorrectly reported the sides of its private trading platform. >> kayla tausche on the details of that. >> bank of america backtracking again on data provided to regulators. this time the data concerns the volume of exchange trades the bank handled last month. finra began collecting data on this activity after mounting criticism against the so-called dark poompts the first batch of data highlights the week of may 12 through 18 and the amount of trades that happened then. it was published this week and it showed the bank of america had the highest volume of any firm involved by credit swiss, barclay's and ubs. shortly after release the data showed that b of a had half the volume reported and that's because an error was uncovered. the bank declined to comment or

elaborate on how the missed clusion happened, but this data is just part of a new move to shed light on exchange trading that accounts for more than a third of all activity that consumers and institutional investors are making. of that activity big banks process more than half of it, and, that of course, has piqued the interest of regulators who say transparentsy is better in that they can't be sure what's going on in these dark pools and some of the alternative platform but it's in no firm's interest to be at winner or the top of any lists so perhaps for the bank of america looking sloppy might be a better alternative though of course not ideal. back to you. >> kayla, thank you very much. this might not have raised many eyebrows had the bank's stock not tumbled in late april after making that error in the financial report that was submitted to the fed. you remember that error caused regulators to force b of a to suspend its share buyback program and the dividend increase that it planned which, of course, didn't set well with investors and shareholders who had been waiting for that.

>> joining us for more analysis is senior manager at the bond rating agency. chris, good to see you again. >> hi, guys. >> how serious do the problems run at b of a? >> this particular issue i think is noise. they made a mistake on the number. it's kind of silly because merrill really doesn't figure in this particular area, four firms that are bigger than they are. >> wait, chris, to be clear, they reported a size of their trading pool that put them as biggest on the street. >> number one. >> the numbers were published and then they go, sorry, half the size of what we said we were. >> there are other firms that were bigger. you know, to meet issue with bank of americasy think one of fatigue this. maing bank's leadership has been, you know, running the bank since the crisis. moynihan, the ceo, talks about, you know, how -- how difficult it's been, and i think much like city group it's time for new leadership. it's not the mistake in and of itself is such a big deal, i

think it's not, but there are other operational issues that investors i think have a right to have an answer to. i'll give you an example. earlier this year when ginnie mae told bank of america they can't make any more loan transfers, they had a big deal, and this is an issue that have you had have been addressed by management years ago. it hasn't been done in part i think because they have been taking cost out of the business. there's been huge turnover among managers at bank of america, and i think it's time for a change. i think the board of this bank really needs to start thinking about this seriously. >> is it the ceo we hold accountable on all of this or what about the cfo bruce townsend, the highest chief financial officer of the corporations out there in the whole country and now you've got two big boo boos on the balance sheet. don't we hold him accountable? >> someone has to be held accountable. bill, the point again is this bank that has literally been shaken apart because they have been restructuring in a slow

death march for the last five, six years, they didn't do it quickly. they are almost done. i mean, the good news is that bank of america is almost done with the process, but it's been extremely costly, and investors have been waiting and they are frustrated, and i think that to me is, why much like citi, we need a strong operator who really has credentials as an operator. i don't think you would say that about moynihan. he's been learning on the job, to be fair, and i also think that the board has got to at some point do something to say to investors, look, we're going to build this bank. >> so you're saying moynihan should go, chris? >> i think the board needs to have a transition. much like citi, it would be a fresh start. this is a bank that you've had investors waiting for years to see something happen. >> all right. >> look, at the same time it's a succession of cfos that some say could be responsible. >> i'm talking about operational managers, running the bank. >> we get it. >> it's a great point. look, certainly one that we expect board rooms to be having. >> thanks, chris. >> thank you guys.

>> yeah. >> about 35 minute to go here. the dow is still negative. all throw indexes are, in fact, but the s&p has to turn around by a couple of points to notch a new high. >> verizon getting a lot of buzz in telecom after warren buffett and several other billion airs took big stakes in that company, but our next guest says it's time for investors to dial up shares of at&t which have been underperforming verizon so far this year. >> and coffee lovers get a load of this, the keurig green mountain has sent these tasting trucks to several interests. we'll have a little taste coming up later on "closing bell."

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minus signs as the dow and s&p struggle to close at new all-time highs again. >> dominic chu rounding up some of the big movers for us. hey, dom. >> the tug-of-war continues. we're going to start here with hillshire brands which is moving higher after it received an improved $55 a share bid from pilgr pilgrim's pride. that's $5 more than tyson foods'

counteroffer so those shares reacting positive. wynn resort, las vegas sands, mgm, biggest casinos falling after ma could you gaming revenue said was up better than a weaker 9% in may and clovis is getting hit for the second consecutive trading session following news that its lung cancer drug cost patients in an early stage trial to experience higher blood sugar levels. the ceo was on cnbc yesterday defending the drug. >> we had three patients who were when this first emerged we didn't know how to treat it and had to go on insulin briefly but no, it does not cause diabetes. >> at&t is falling despite raising its full-year revenue guidance due to strong trends in its wireless business, down 3/4 of a percent. even in today's trade. back over to you. >> thanks very much, dom. does this put at&t into the

conversation for investors when investing in telecom, or is verizon the one to own now? >> let's ask our guests. great to see you both, look, we saw a lot of hedge funds piling into verizon in the latest batch of filings, michael, but is it time to take a fresh look at at&t? >> we actually like both stocks. i think at&t has caught a bit of a black eye because of the quote, unquote, immunization of their customer base pricing down towards industry pricing levels. the question for verizon is are you immune to you or will you see the same pressures that at&t is reacting to? >> what about you, amir, in light of the acquisition of directv which is getting mixed reviews by this time? >> there's a lot of mixed reviews at this moment with respect to that move. the question really is there's a lot of moving parts with at&t. as we saw this morning the company raised its revenue outlook but didn't quite see that benefit to the company's bottom line and that's what's been pressuring the stock today.

the company's acquisition in dtv is moving it into another strategic area, and there's a lot of moving pieces there as to whether or not it can opportunistically monetize those assets in order to move forward in this new era of data access anywhere any time and on any device. >> amir, let me put it this way. is at&t's approach building a better bicycle than verizon's? >> i think at&t's approach at this point in time is to look forward another ten years in terms of how we're consuming data. really the question is how can they leverage their balance sheet today to build the access technologies and optimize data delivery tomorrow? as we've seen, you know, we're now watching more content on mobile devices. we're looking at more content on direct pipes coming in with ott services, and i think at&t at this point in time is trying to think how do we best position ourselves in order to optimize that over the next ten years. >> local mcadam over at verizon when at&t bought directv and

everyone said verizon must buy dish networks that's not going to happen and we just don't need that strategically? >> verizon with the penetration of fios in the marketplace and probably less necessary for verizon of the just took in the vodafone stake in verizon wireless so that was a significant outlay from a cash standpoint and levered the company up as well so the next three or four years from verizon is probably going to be blocking and tackling and paying down the debt level. there's a lot of speculation about who may or may not want it and a discussion about whether they should have bought dish tv instead. the direct tv will bulk them up in video and scale and when the discussions come around to over the top and watching television in non-traditional ways they could be in a better leverage position against non-content providers. >> who do you think has better potential over the next couple

of years? >> i think they are both very well positioned. verizon post de-leveraging of the vodafone transaction going out four years from now, they will have $7 billion of $9 billion to apply towards debt reduction and share repurchase and dividend as well and with at&t post the dtv transaction they will have significant cash flow as well, taking it down to a payout ratio investors are much more comfortable with. >> the same question to you, amir. can you go wrong picking either of these companies right now? >> i think, you know, from our perspective i would agree with motorcycle's points, particularly post the dtv acquisition with ate a. a lot of concerns over the last couple of months in terms of what at&t's business would look like in the event of increasing competition in the u.s. wireless market and purchasing dtv based on the numbers that we have in place does bolster their cash generation capabilities out several years and that should give some's to some of those concerns that at&t may phase

some pressure when it comes to its cash outlays to shareholders. with respect to verezon, you know, we're in the same camp as they start to pay down that debt with respect to the vodafone stake in verizon wireless. that should continue to support the healthy dividend yield on the stocks so for dividend-focused investors it seems both will continue to meet their obligations. >> yeah, valuation becomes the next point if that continues. guys, thank you for now though. >> thank you. >> thanks a lot. >> heading towards close, 30 minutes left, a little less than that. the dow is down 15 points. looking for the vix. how much lower can that go? >> 11.86. >> very, very low. >> that speaks to the volatility or the lack of it lately. there it is, and you can just see it generally heading lower this year and we're at the lowest point of the year right now, so where's the volume tilt? where are we going from here? don't get very big wild swings in the market these days. >> that will be part of our discussion next hour for sure. also, auto sales were surging last month, and despite gm's

recall crisis, their numbers were strong, so what does that say about the state of the economy right now? phil lebeau and steve liesman tackle that question and will take it for a test drive right now. >> seattle hiking its minimum wage to $15 an hour over the next couple of years, more than double the current federal minimum wage, but will that end up doing more harm than good to the city and its employers? "shark tank's" kevin ollie will be here and you won't believe what he has to say. we never believe what he has to say. >> or maybe you will. >> see you in a bit. we needed 30 new hires for our call center.

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welcome back. 24 minutes left. if you're just joining us, a quick update on the markets as we head towards the close. the dow is down 16 points right now. it's just kind of been a drifting kind of a day bloat unchanged level. we're at 16,726 and any positive close would be a new all-time high. nasdaq's also lower by three points. s&p close to an all-time high but down less than a point right now. we may be able to pull that one off. >> you going to go make some trades? >> no, but maybe somebody out there will take the hint. >> and maybe gm and ford will help do it, outperforming the s&p 500 today.

amazing car sales figures out, not even gm's recall crisis could slow down sales last month. >> steve liesman and phil lebeau to tell us what it says about the healthier economy. phil, start with you. break it down fours. the best month of may in terms of sales in seven years. are we talking trucks, family sedans, what are we talking here? >> really across the board, bill, but really the strength when you look down with which vehicles is selling on the truck side. suvs are red hot right now, so are pickup trucks. those two markets continue to drive most of the sales gains, and those are the most profitable vehicles for the industry. look at the far right of this chart. this shows you how far we've come since 2009 when sales bottomed out at just over 10 million. sales pace for may at 16.77 million. guys, that's a huge chunk from 2009 and not too far from the all-time highs that we saw when it was in the mid-17 million range back around 2001, 2002. >> you know, steve, how is the

business cycle? are we at a point where auto are the business cycle? >> also, kelly, you know this, what auto sales tells us about housing because one of the thing economists like to watch are the truck sales because they use a lot of light trucks in housing and, phil, tell me if i'm wrong here, we did see some strength in the truck numbers which suggests that maybe some of the smaller businesses, some of the housing, that's doing well. i'm also hearing reports, phil, of solid fleet sales, that when you do fleet sales that brings down inventories, and what the economists are looking for, kelly, they are looking for production. sales are one thing, always good to sell stuff but you want to seat inventory replaced and the thinking now is we could have a pretty good second half of production ramped up from what is already scheduled. by the way, it's not just may. according to my calculation this is the best five months we've had since 2007. put the whole five month of the year together. >> wow. >> is this the second-quarter

bounce we've been talking about post-winter? >> there's chart i want you guys to see. if you look at that december, january, february, that suppressed winter sales, people not getting out to the showrooms, not going to the launch and then you can see march, april and even may doing better. i would caution i don't think 16.77 is the right rate, i think that's too high. do i like 16 and maybe a little bit above that for the rest of the year. >> i think 16, too. >> i was just going to ask because going back, actually people should know that it wasn't before the crisis that auto sales in this country peaked, actually peaked way back in 2000 and everyone in the industry has been saying we'll never get back there because cars last longer today, et cetera. i don't want to read too much into this one month snapback effect but we're almost already there. >> one month probably better than what we'll see for june, july and august but those are all expected to be well above 16 million as well, and just so you know, kelly, a number of people

are saying look at two or three years, we're likely to see 18 million as a sales rate in the u.s. >> 18 million, oh, my good. >> but don't get too excited, right, because the population has changed between 2000 and 2014 so there's more people in america. >> true. >> i think you're actually never going to reach the cars per person we had back then. >> before we let you guys go. any headlines out of tesla shareholders meeting? >> a good one. a reader flagged me and i have to relay it to you. elon musk was asked about autonomous drive vehicles and says, quote, i'm confident in less than a year you'll be able to go from the highway on ramp to the highway exit ramp without touching any controls. how's that for a little prediction of what we can expect on the road? >> within less this a year? phil, does anyone -- >> can i just point out, phil -- >> that's amazing. >> i can do that now. >> yeah, using your knee to steer doesn't count.

>> i don't want to know. >> i just don't want to know. >> be safe there, steve. >> nice shout-out to megan, too. >> in less than a year. that's elon musk, right? >> i love it. >> good for the bold statement. >> is that even allowed? i guess it is. >> that's one thing and you'll have to get the laws changed to you a lou th-- to allow that. >> we're only half a point down. if we do turn positive for either of the major indices it will be a new high. >> bill clinton was known as the comeback kid in the political world but he may have nothing on best buy when it comes to the investing world. the electronic super store chain is mounting a charge to become one of the stock market's comeback kids. we'll have that story coming up next. >> later on "closing bell" kate kelly joins us on the same day her excellent new book is released called "the secret club that runs the world, "the inside the fraternity of commodity traders and a member of the

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since the beginning of the second quarter. >> and some of the stocks leading that rally were actually the biggest underperformers over the past year. dom thick chu is taking a look at these comeback kids for us. dom? >> reporter: kelly, bill, mentioned best buy, one of the stocks that may be showing signs of life. one of the other stocks attracted to investors is ones that have been beaten down but showing some recent signs of life, a little upside momentum so here's the screen that we ran here. we looked at large-cap stocks in the russell 1,000 so a bigger more expansive universe in the s&p. they have got one-year returns that are negative so they have had a rough go of it but positive gains over the past two months or quarter to "today" date. now there's some interesting ones here because these are the tech guys. here's the theme that we found for some of the stocks. first of all, contractors maker jabil was down 7% over the course of the past 12 months, but it's up quarter to date. this is a company that, among other things, other companies use to make their technology outsource manufacturers, up 4% this quarter.

then you walk over here and see what's happening with citrix, a company, a cloud computing one, a networking company behind virtual workplace solutions like gotomeeting.com or go to my pv, lets you work remotely from home, down 2% over the course of the last year but up 6% just in the past two months so showing upside momentum just as of late, and then there's one more that we want to highlight, cyber security firm sumaymantec. the some is down 3%, again, over the last year. it's now up 8% quarter to date so among these stocks here are just some of the ones that investors are looking at for a possible turnaround story in the making. remember, relative strength or price momentum is one gauge a lot of traders traders use to see whether or not there's a turnaround actually for real but only time will tell. guys, back over to you? >> yes, indeed. thank you, dom. >> see you later. >> 14 minutes left in the trading session.

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welcome back. about ten minutes left in the trading session. the dow is down 18 and the nasdaq down a point and the s&p down half a point joining us is peter anderson from congress wealth management. volatility has just dried up here. is the market waiting for this ecb meeting, the european central bank meeting on thursday or have we suddenly entered the summer doldrums? >> i think it's a bit of both. hate to hedge that way but the volatility, everybody looking at that and it's really low. almost like if you're a doctor looking at a patient's chart, right, three things you would look at are probably the equity market, yield spreads and volatility and they are sending

mixed signals so if you're a physician you're looking at the patient and saying none of this makes sense, i would like everything to be in alignment. the one thing i'm concerned about is the message that the low interest rates are sending to the market versus the low vix and the okay index. >> this is where it will get interesting because john hilzenrath says the fed itself is concerned about this complacency. >> what they are calling complacency. that's how they see it. >> there's an easy way if i'm the fed and want to wake people up a little bit to do that. do you think it's possible that they might try to wake people up a little bit to what they think might happen? >> my thing with the fed is they talk almost too much right now and i think if they could take a little bit of speed off the ball with the words. i looked at the number of words in a fed statement. i don't know if you've ever looked at this, but over the past ten years. >> oh, yes. >> ten years counting the number of words, they have

multiplied -- >> it's quite clear. the thing is like six paragraphs and long meaty paragraphs, by the way. >> which has tracked the balance sheet of the fed, too, so you have to say can you say it in 200 words or less and what's going on with the 800 words now? >> look, we can't keep the low volatility going on forever. too much going on with the european central bank meeting and jobs out on friday. just too much potentially market moving event coming along so there's got to be -- something's got to give here one way or the oh, don't you think? >> i think though that you'll see volatility picking up, and i don't think that's necessarily a bad thing. when i get worried is when it starts spiking too much because there's no sense in the market anymore. you can't make intelligent investment decisions. everything looks like a nail because all the world has is a hammer, that kind of thing. >> what are you doing with client money right now? >> well, i am believe it or not, a patient investor. turnover for me is less than 40% a year.

>> that's why volume is low. >> maybe that's a good problem. that's why everyone is getting long term. >> has this always been the case for you? >> i've always been disciplined. look at announcements. things that have come out, news, but keep it in perspective and if you're long term, what's long term now, over a year, use theed to be like five, ten years, if you're longer than a year i still think you take the earnings newsnews in stride, let's not panic and let's look at trend over three or four quarters, not one only. >> especially if you're buying the large caps, and i'm thinking of the dividend payers everyone was see enamored for. those aren't the kind of stocks you'll trade that frequently, right in. >> the small caps and mid-caps are the more volatile runs and tend to turn more frequently, as they should because there's usually one or two special markets that they invest in, and

they don't have a lot of products, so you would expect more volatility there, less on the large caps and let's hope that it gets back to that way. >> all right. good. thank you. >> okay. >> see you in a bit. >> the closing countdown is coming your way with the dow down 18.5 points right now. >> after "closing bell" you heard of food trucks, but what about a coffee truck? keurig green mountain is sending trucks like this to a city near you to brew up brand awareness? do the techniques really work? based on the reaction. >> if that's free coffee, trust me, they are out there in droves at cnbc today. >> a top executive at the coffee company will join us lately on "closing bell" to explain the strategy to a caffeinated bunch. you're watching cnbc, first in business world wie. peace of mind is important when you're running a successful business. so we provide it services you can rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on. multi-layered security solutions keep your information safe, and secure.

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what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. three minutes left. lately what's happened is we've had a little quiet trade here until about 11:30, europe closes and then maybe we get a move higher and then it goes sideways. never got that today. been sideways for much of this day after that early selloff. still down 18 points. this is the dow, by the way today, so a slight decline and, again, any positive close would have been a new all-time high but that doesn't look like that's going to happen here in the last two and a half minute. what did rise today were treasury yields. look at the ten-year, up six

basis points today. we're at almost 260 right now. the 30-year also rose appreciably so it was kind of a steepening of the yield curve today as stocks moved a little bit lower. volatility, keep talking about this, the fear indicator has just languished. this is over the beginning -- this is over this quarter the last two months here, and it is in that time down 11%. it's up 2.5% today but over this quarter, bob pisani, volatility has come down 11%. just talked to peter anderson and he said i don't trade that much right now and bought dividend paying stocks and he sits on those. that's the problem. >> moab is trading too much right now. sort of a great silence that has descend on the markets and this is not just this is the summer so, therefore, let's walk away. since the beginning of may, volatility is down and trading volume is down and intraday swings are down and a lot of the traders i spoke, to the long-short equity funds have flattened their position out,

not as long as they used to be. the overall book that they have is not expecting that much volatility. >> that's right. >> as i said earlier that can't last because we've got too much coming in the near future here. >> there's indications that the fed, some officials are concerned about the complacency there that nobody is expecting anything to happen and what's going to happen, something will happen, we don't know, but that's a legitimate concern that i think people will have. tomorrow i'm going to be at the o'neill exchange conference, all of the brokerage firms will be there. we'll be talking to some of these theme, fred thompsic. >> their volume has come down, small investors just not trading in this quarter. >> we'll be talking to all of these people about what's happening. why is the volatility so low and why are we look at interest rates that continue to stay at unexpectedly low yield confounding everybody's trade this year. everyone expected rates to go up. they have all been long so far. >> look forward to that

interview tomorrow. that's it for our first hour, the dow finishing down about 21 point and the s&p down about .75 points with the nasdaq down 3. stay tuned. it's "shark tank" tuesday. you know who that means is coming your way. that's coming up on the second hour of "closing bell" with kelly evans. i'll see you tomorrow, kell. >> thank you, bill. welcome to "closing bell." i'm kelly evans here as we're finishing up the day on wall street and trying for new record highs for the dow and s&p but looks like we're falling just short, the dow giving up 20 points not close and the nasdaq off less than a point and nasdaq off three. joining me now in today's panel david sieberg and kate kelly and kate today, look at this, has a new book out called "the secret club that runs the world, inside the fraternity of commodity traders" and joins us along with anthony steve mariucci and "shark tank" investor kevin

o'leary the author of "the cold hard truth and men, women and money." with us as well is "fast money" trader guy adami back for a repeat appearance? right on. >> good to see you. and good to see everybody again. with these markets, we're going to talk in a little bit about or -- we talked a little while ago about what's going on with tesla, the cars on autopilot, but these markets, david, seem to kind of be on autopilot. >> they really are on autopilot. everybody is waiting on the ecb and what will happen with the employment report but they really are on autopilot. i talked to a lot of investors, the institutional guys and they are confused. they don't know what to do here, it's anemic volume, you know. i think there's much more risk to the downside right now than upside given the lofty levels we're at and given the fact that we could be disappointed by the ecb. >> i like the autopilot reference. >> that's the more negative connotation, right, kind of like no one is trying anything, no one is doing anything rather than there's a slow and steady

or steady in the case of cruise control pace and they want to take the risk off. i think people are confused about what the next move should be, not sure if they will get more ubuhliens out of the stock market. i know i always say this, kelly, but do i hear people talking about a big dropoofs, potential correction in the july and august time frame. >> the secret club that runs the world, maybe if you want to talk about more the wall street crowd as opposed to the commodity crowd, but, look, they are bracing, anthony, are they not, for still some kind of correction here in equity markets? >> objection but there's been incremental short covering on the margin because what we do is track 1,200 hedge funds through our database so there's been incremental short conversation so i do think people are waiting for the ecb numbers and the movement from the ecb to make a determination of where the next leg will be, either up or down, kelly, in the market. >> guy adami. >> hi. >> welcome back. if we wake up --

>> guy's checking kate kelley's index to see if he's in the secret club. >> hold on one sec. i'm going to answer your question. first of all this, book is going to be fantastic. >> already, is i'm halfway through it. >> by definition it's not a secret club anymore. >> it started out as that hype block working title and the more i got into the title it seemed aprop apropos. >> it is a thankless task, is it not, to write a book? >> i don't want to sound ungreat. if i'm fortunate to have a great publisher and the people i wrote about is very generous with their time. it is a lot of work and you want to get things right and things live on in print that they don't necessarily in conversation, not that that doesn't mean we don't strive for accuracy all the time but it's a very isolating kind of work at times. >> and we'll have much more on this in the next blook block. >> guy, if we wake up on thursday and the european central bank has done something big, what does that mean? what does the investor here need

to know about? does that mean the next leg up for the equity market globally? >> first i'd take the other side of that trade as lower. the pain trade continues to be higher and as counterintuitive as that sounds and as you pointed out so many people for so long a time looking for the move lower. the volume argument as well, that hasn't held water for the last five years because if you've sold this market or tried to on the back of lack of volume it's been a fool's errand so the world has just changed so the volume argument is there as well. the ecb could be the exogenous event. as you point out that's what everybody is looking for, but i think it's going to be the other side of what people are thinking. i think market tops and bottoms are defined by events. typically on a bottom you have a big downdraft followed by stability, maybe, maybe you get this big updraft that nobody is looking for followed by a bit of a self that will lead to the event that everybody is talking

about. >> i'm wondering are you hard pressed to find a mainstream idea that people can get comfortable with, because when you read about what the professionals are doing they are literally betting on shipping rates in the future. looking at more obscure emerging markets or getting higher yield, i know that at anthony's conference, hedge funds, talking about buying troubled bank assets in europe. >> i hear you. when i talk about investors and we talked about this trade, what i mean about this short term, i think this market has a lot more risk to the downside than upside. i'm a long-term bull and we'll continue to grind higher and come september i think we take off and i think we'll move much higher as we see gdp pick up and employment pick up and top, growth pick up and i think the risk near term is more downside than upside. i think even if the ecb surprises to the upside and it's massively blowout i don't think

the market is going to rally a lot more from here in the near term. >> kevin o'leary, look, you've got a unique window into this now, got a bunch of mutual funds. how are people responding to that. is it all still about the reach for yield, the grab for yield anywhere you can get it? >> i look at it this way. >> the most pragmatic investor has asked themselves, i basically have two choices outside of the exclerktic investments i've been talking about. either buy bonds or buy stocks and i can still look at stocks in the s&p for 2.3, 2.5% dividend yield. that's cash in hand. i know it's certainty i'm getting it and after we've gone through this first round of earnings i'm feeling comfortable between 6% and 9% earnings growth. still favor equities right now and got to hit me with some really bad news to make me stop doing that. got to be had a meterite hitting new york at least. >> what about the fact that with all the talk you hear about hedge fund results underperson forming the s&p or the fees being too high or what have you, hedge fund assets globally are

at an all-time high. i mean, what is that all about, kevin or anthony? >> hedge fund guys are supposed to outperform the index which they haven't been doing lately. paying two and 20 to be better than the markets. don't get it right all the time. certainly don't get it right right now. these guys are not really hedging, using leverage and when the interest rates turn as they might before we die they will get slaughtered. three and four times levered. >> i understand the point kevin is makeing. if you look at the consulting community, they are trying to make a benchmark ahead of bonds but actually behind the s&p as long as they are using less volatility. we can make the argument whether or not -- >> what do you mean? when you're going into the institutional community to get the allocation, the reason why there's 3 trillion in the hedge

fund community is because of the institutions. you have to go through the gatekeeper which is known as the consultant? >> you're talking about like endowments, pension funds, institutions, right. >> so the consulting community is actually looking for above bond market returns, below the s&p 500 index return provided that you're getting it there with less volatility. now, we can debate whether or not the fees are worth all of that, but a lot of guys can do that. the top alpha 100 are doing that and that's why you've got $3 trillion in the space right now. >> guy, what do you think? there's kind of a perverse logic about all of this is that the longer we're in a low rate environment and the more steady and secure and the more that these institutions need to get yields in the terms, you're more than likely to get more money to the funds even if their performance isn't all that great.

>> i still think this entire thing has been built on an overly accommodative federal reserve, and it just almost by definition can't end well so as people continue to chase, as bond yields in my opinion continue to go lower, the last two days notwithstanding, i think you'll have some sort of event. >> kevin. >> i'm freaked out by this 2.5% ten-year bond. you can't have it both ways. if the bond stays down here, equities can't keep up or we're not living on the planet earth. >> this is a point that bill miller has made, look, interest rates are structurally lower now, then why wouldn't you buy stocks here? >> the problem is the bond market is telling me that we're going to miss these earnings reports, that if you're willing to take money and put it aside for ten years, you wouldn't

believe 96%, you would never put money in there, my whole point is in there, somebody is wrong, the bond guys are right or the equity guys are right. >> i disagree with that entirely. the ten-year is telling us something entirely different, massive short squeeze in the ten-year and there's still a lot of people -- a lot of shorts outstanding in this thing. also look at sovereign deals. look how much they have come in. we look like -- it looks like our creditworthiness has increased dramatically. where are you going to go, from the competitive perspective i think that yields have come down dramatically mainly because of a short squeeze, look at a lot of underfunded pensions with massive equities, that sold that equity and put that into the bond market, i think it's not telling us anything different here or anything we should be concerned about. i think it's an abnormal situation but it's not concerning me at all. >> we need to talk more about the credit boom and we'll do so when we have more time. for now we'll leave it there. guy adami, thanks for joining us again. >> good to see you. stick around and catch guy

coming up with the "fast money" crew at 5:00 p.m. and then we're talking the ceo of a wireless technology company that struck it with samsung. stocks earned 20% on that news and the ceo will let them know what's coming next so don't miss it. now straight ahead, if you think your property taxes are high, here's proof they could be a lot higher. how about more than $500,000 a year. that is what computer associates founder charles wang pays for one home. we'll have the complete breakdown of who the top property taxpayers are. first though, our colleague and panelist kate kelly has a new book, there it is, "the secret club that runs the world, the inside the fraternity of commodity traders." we'll talk to kate and the secret traders. he's here and the secret will be told when we come back.

welcome back. we start here with a quick earnings report. dominic chu, what can you tell us? mattress firms is posting weaker than expected first quarter earnings and revenues and it raised its full-year sales guide absand repeated its full-year earnings guidance and outlook here. the stock you can certainly see it's up 4.5 percent in the trade so, yes, soft in terms of

mattress firms on earnings. >> dom, thank you. after a cooling off period commodities are making a comeback. goldman sachs out with a report saying it's now bushel on the entire sector and on more if they should add more to their portfolio let's bring in our very own kate kelly, she's got a book out today about commodities trading called "the secret club that runs the world." this is jeff curry, head of commodities research at goldman sachs. jeff, welcome, glat to see you. >> hi, good afternoon. >> tell us, first of all, the xhomd tis, been through the boom and the best. where are we now? do you see opportunity across the sector? >> i want to be careful about the characterization you use about being bullish. we're relatively benign in terms of our outlook. where the real interested developments are in the forward curve shape. we've actually seen a development in the oil market and despite the fact that we see prices flat lining over the

course of the year, a positive carry in the forward curve allows you to go out, buy at a discount and roll up the forward curve and last year that strategy generated a 7% return in crude oil despite the fact that prices were flat over that whole time period so i want to emphasize we still have a benign outlook and really the shape of the curve that really generates the opportunity. >> kate, please tell me, if people are reading your book they will know exactly what you're talking about. >> hopefully i've done some work to explain some of the terminology. >> great to see you, and in my book i talk about this meeting that you had at the end of 2012 with some major clients in london and were you showcasing some of goldman sachs' research at the time. the commodities asset class had taken a huge beating then and what has changed between then and now, even without saying you're out and out bullish sounds like you're talking about mixing up a potential portfolio and ride this trend of global growth. that's a little more optimistic than it was a couple years ago, right? >> unfortunately nothing has changed in the markets over the

course of the last three or four years. however, what has changed none in the commodity markets but what's happening around the commodity markets, and the core theme of that piece is that we've seen a reduction in the correlation between commodities and other asset classes. we like to argue what create that had correlation in that 2009 through 2012 time span was the nature of the credit shock that hit all asset classes equally. now that that credit shock has gone behind us and we don't hear risk on, risk off anymore we've actually seen the negative correlation between commodities and other asset class returns and that's really a key point and despite the fact that our outlook for commodities is as equal or boring as it was back then we now have back wardation. >> i want to bring the panel in. a lot of people and congress who held as kate documents some 40 hearings in the first part of 2008 on the issue of trading and commodities would be relieved perhaps to hear that this return

may lead to normalization. do you see that? was there illiquidation to a lot of the funds and traders who tried to get in on that sideways? >> you had such a credit shock and it caused a disruption in so many different asset classes, we saw correlations converge. everything looked at the 1.0 to everything else and i think it started is normalize now and the question i have for both of these guys is directionally with where the fed is going, how is that going to impact commodity prices, if at all over the next two to three quarters and into next year. ? >> jeff, the direct impact is primarily on gold. the need the target on gold is 1050. we need to have underlying economic growth. >> you're saying essentially

we'll have-200 drop by the end of the year. >> really. >> it's driven primarily on the view that the u.s. reaches a velocity and the macro numbers really began to improve. >> i have a question about commodities. as an investor this is an asset class that when it goes down it doesn't touch the sides. there's no yield to support it. it's easy to lose 20%, 30% if you get on the wrong side of any commodity trade. what's changed about that? what's different about that? if you're going to pie into this you're going to have major fortitude for volatility. >> yeah. >> if you look at the volatility across the commodity markets they have come off relatively sharply and there's two reasons that are not macro relate that had are specific commodities, one is the demand curve today is much flatter than what it used, to but other one is more structural and that's the nature of the comply curve. the shale revolution has turned oil production into a manufacturing process meaning as prices go up, dial the

productions up, as prices go down, dial it down so there's a much more stable environment for commodities today than what we had going back several years ago. >> having said that, jeff, you know you spend a lot of time looking at geopolitics and think where we might have political conflict that could have supply shock, especially in crude oil. are you worried about issues like that in the near term and where are the hot spots at the moment as you see it? >> i would argue the political risk is mostly downside right now meaning that the situation can't get any worse in libya, can't get any worse in iran so what you really have is negative headline risk coming out of both of these places that. said the only place can really disappoint and create upside risk is iraq and that deals as a relatively low probability right now. >> what about china and japan though? >> look, i'll let one last question. i want to talk about the book as well. ask about china and japan real quick. >> just curious, are you worried about that as potential headline risk, the tension in the south

china sea? because nobody is worried about it which is why i'm sort of worried about it. >> that's true. >> i would group that in with the situation in ukraine as being more of a driver to gold. in fact, that's what gold has been trading off is the headline risk of let's call it ukraine and the south china sea against better macro data. however, again, the macro data is winning out on the gold side as well. >> jeff, thank you. >> by the way, you're in the book. what did you think about it? >> at the end i had to burst the bubble, unfortunately. >> yeah, you're talking about how much has changed to the downside in the industry in that scene, but, anyway, it was fun learning more about the business from you and others. thank you for your help. >> great, pleasure. >> thank you. >> kate, by the way, i'm like a third. way through and we've hit mark rich, talking about the history. >> morgan stanley. >> it's like a roll call and all of a sudden it starts to illuminate what was happening during a period when most of the people were focusing on housing

and the housing crisis. >> this is sort of a working title that we had to develop and the more i learned about these folks there are some famous ceos and famous traders, big risk takers, some we've heard of and some we haven't. a relatively small asset class, of all the major asset class around the world, commodities are typically the smallest or second smallest and yet it's a very powerful sector of the markets. >> right. >> partially because of the nature of the instruments you trade have this built-in leverage. >> volatility. >> and you get greater economic exposure and that means to the downside your cash outlay could be enormous and you also have very volatile moves. gary cohen of goldman sachs said, and i'm paraphrasing, i love it when guys come to me and say that was a one standard deviation in moves and in xhomd tis we have several times that on a somewhat regular basis and there's guys that have done

stocks, bond and mortgages and something in his view. >> 2011 arab spring and say no more about the influence some of these moves can have. >> thank you. >> i've already taken off the dust jacket because i just don't like them. congress debates increasing, there's cover, the federal minimum wage. some parts of the u.s. no longer waiting from the space needle to starbucks. currently doubling the current minimum wage to $15 an hour. up next we'll look at what it can mean locally and e-trade got rid of its talking baby ad campaign replacing it with the type e campaign. is that why the company says trades were down, probably not but later why despite the record highs investors seem to be sitting this one out. the world has gotten you far,f but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea

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defined that whole vacation for her. don't just visit new york. visit tripadvisor new york. with millions of reviews, a visit to tripadvisor makes any destination better. welcome back, last night the city of seattle passed a law raising minimum wage to $15 an hour, more than twice the federal minimum wage of $7.25. seattle mayor ed murray said, quote, there will be lawsuits but seattle has made a significant step. joining us now to explain just how significant and how this will work and who will be impacted, we're pleased to be joined right now by lynn thompson, city hall reporter at "the seattle times." >> lynn, welcome. >> thank you. >> this was a move that it sunds like had some big money backers to help get these things on the ballot and passed. what happens as of today?

>> well, the bill passed by the city council becomes a law. it goes into effect next april, and it is -- it's a complicated way to reach a $15 minimum wage. it starts -- ramps up gradually and large businesses will be paying $15 an hour in three years, small businesses in seven, and -- and many complications along with that. >> yeah. it's interesting because, look, i mean, a lot of country is going to be watching seattle. what do we need to know? why do you think seattle has been one of the first to go pack and hit that $15 mark? >> i think it's a combination of factors that all came together. we elected very progressive mayor in november who made the $15 minimum wage part of his campaign pledge, and it was one of the first things he did when he took office was to set up a committee of business, labor and non-profits and basically say

your goal is to get to $15, you guys figure out how to do it. we also elected to a socialist to the city council, first time in 100 years, and she also ran on a $15 minimum wage platform and she was pushing, and her followers, an organization called 15 now, were pushing for an immediate phase-in of the $15 minimum wage so i think business got the message that something was going to happen and they needed to help work out a plan that would work for them. >> a quick question for you just from an efficiency perspective. it seems inefficient to price it so high compared to what's demanded and when you start to work out those structures it's a problem. cost of goods go up, right? it costs the employers a tremendous amount of more money, and i've got to tell you the incentive structure to help people get off their feet, educate them and go for the high-skilled jobs, it seems to me that that defeats that. am i wrong in looking at it that

way? >> well, the focus here has been on how expensive the city is getting and how hard it is for people making minimum wage which we do have the highest in the country now, it's 9.32, but if you're working full time that gives you $19,000 a year and those people can't afford a studio apartment even if they are a single person. >> no, i understand that, and i also feel like that's correct but when you think about putting that wage up there it really changes the dramatically from the standpoint -- really the lower skilled people, the ones that are actually willing to work for a lower wage, they are willing to do it. they are kind of boxed out of market here. i mean, they don't have the ability to take some of those jobs. you're going to have a massively underemployed market, in my opinion and the people that really, really need it and just don't have the -- the ability to find a job based on their skill set, in my opinion they get boxed out. >> something bigger is going on. >> there's something missing in the debate.

looking at the dialogue in city council i didn't see any discussion at all about how much job destruction this would cost. if you have a business that's marginally profitable which is the definition of most small businesses, they are not going to be able to hire any more incremental jobs so that was missing in the entire debate which i found extraordinary. why stop at $15? why not go to $50 if this -- if this is all such a great problem, why not make it $100, why not make it $1,000, why let a socialist decide how to redistribute wealth in seattle? >> there is an interesting local political movement going on and i was fascinated to hear about some of the dynamics, think about new york and mayor bill de blasio. he's obviously struck a much more liberal minded chord with voters here and he's negotiated with unions recently, provided a retroactive raise to teachers. i wouldn't be surprised to see some pressure, i don't know about $15 an hour, but you guys are know. do you see something like that happening? >> i'm all for supporting people

that need it, and i agree there needs to be some changes to help facilitate. it's real befacilitation of job growth and it's not about handouts and the problem is we're so caught up with, you know, looking at the top 1% and so of what the makeup is there and the big bad 1%, look, i'll be honest with you. i think there needs to be real structure in trying to figure out how to create value and jobs. >> last question. >> i was going to make a statement. maybe it's the capitalists' false. 100 years ago hen fry ford figured out they had to pay people the right level so they could buy his car so there's a huge problem in the country that we all have to acknowledge. the social contract is broken and i hate to see the government mandate the wage. we should be figuring it out as capitalists how to get the wages to a price where we don't eliminate demand. >> supply and demand. >> are there any business nez seattle that have come out and given all of this pressure and what anthony is saying that we're going to try to set an example and let everyone gather

behind us, or is everyone basically being pushed to adopt this now that the legislation is passed? >> well, they don't have a choice. it's the law now, and -- and businesses participated in the negotiations to reach a compromise deal, and -- and they do have a three to seven-year phase-in. there's a lot of concern amongst small businesses especially that they won't be able to survive this, that the costs will just go up too much, but we also had economists from university of california-berkeley do a study, doin a analysis of what's happened in other states that have raised the minimum wage, in cities and states, even as much as 65%, and they found no negative effect on employment and very small effect on prices, plrl at restaurants. prices did go up slightly but they also cautions that nobody has gone to 15. they could say up to 13 we don't think there's a negative effect.

15, we don't know. >> and that's the great point. a lot of economists are going to look at this as a natural experiment. we get to find out exactly what happens. please come become and let us know as it plays out. >> from the city that legalized pot. >> seattle. >> oh, boy. let's send it over to dominic chu. not just starbucks that was a trend setter. what can you tell us? >> shares of software company tipco have reopened for trading in the last five or seven minutes, halted for news pending. the news turned out to be its preliminary second quarter results which missed wall street expectations. the street was looking for a gain of 21 cents a share on shares of $270 million. the warning, it will make about 12 to 13 cents a share on sales of about $250 million worth of -- $250 million worth of sales and, again, the company did say in the statement that they experienced a solid first quarter, revenue fell short of expectations in the second

quarter primarily due to lower than expected sales of their spot fire package. that's their data analytics suite of products, again this, company down about 13% in trading right now. we should say, kelly, that that 13% drop is on 435,000 shares of volume so far. back over to you. >> tech has disrupted nearly every sector hand now it's transforming commercial real estee. one of the biggest realtors is turning an apartment complex into a new type of apartment living to appeal to young tech workers, and that story is next. ♪ ♪ drivers want to go further with their electrical vehicles. but you can't take a trip from lisbon to stockholm if you can't plan and re-charge along the way. the european commission is using cloud to make this possible. creating a single charging and billing network across 28 countries. so drivers can travel as far as they want to go and when they want to go.

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. welcome back. oh, wow. time now for the hot list. allen, this really is the hot list, isn't it? >> it's getting to be kind of like summertime. i think we had to take the hot list outside today. a wonderful little coffee truck that came to sort of visit us. who wants to be inside with a stuffy old computer. >> i hear you. >> i think we could both get used to this. they are brewing it up. what's brewing on the hot list? >> hot things on the hot list. number one is robert frank's piece looking at five investing mistakes millionaires make and i've always told you

millionaires draw the readers right in. they make the same mistakes as a lot of us do. it's just their mistakes mean a whole lot more. my number two on the hot list, michelle caruso-cabrera dug into the oil export numbers for iran, and holy cow, it seems like they are going to blow past all the quota requirements put on by the obama administration. gets deep into the numbers and interviewed a few administration officials that seem to be doing the backstroke on it, but a fascinating read. more than 10,000 people read that story already and then number three, phil lebeau looking at today's auto sales numbers and how the consumer has changed what that is doing for them. the consumer seems more willing to go in and look for a car not because they need it but because they want to buy a car. big changes and we saw that in the numbers today. >> willing and able. >> that's absolutely the story. elon musk's comments about how he thinks within a year as phil

lebeau flagged for us, you'll get on and off the highway without touching the steering wheel. that's going to be a big talker for the next 24 hours. >> put that story on the website and it's climbing up again and jostling some others out of the way. >> let them duke it out. good to see you, allen. don't drink too much caffein, almost 5 p.m. shou unless it's decaf. >> high tech is transforming office landlords into tech incubators and 21st century urban planners. diana oiblg is just outside washington, d.c. with one such transformation for us. hi, diana. >> reporter: hi, kelly. you know, it's an old premise with a new twist. how do you get workers to fill your office space? well, you build an urban hub just like this one and that's what national land lord vornado is doing in crystal city, but they are doing it by investing in a $50 million tech fund. >> vornada is an lp in our fund

so they are an investor in our fund. they are also our landlord. they also own most of crystal city here, and so the beauty of the whole thing is that i only have to deal with one group. >> venture capitalist paul singh is luring small-tech companies to crystal city with the offer of capital, a collaborative work space and along with vornado a new way of living. it's tech as the fuel for urban planning. >> we need to create space that -- that really is an ecosystem and that it's a community so people can live here. they can work here, and, you know, this -- the younger set is more interested in sharing space. >> transformed from office to apartment and it will be a social kind of living space and that's what the younger tech workers want. they want the whole atmosphere

and that's how they are drawing them in. kelly? >> all right. great stuff, diana. thank you. >> up next, the markets keep increasing. where are the investors? we'll discuss what's keeping small investors on the sidelines and food trucks are the hottest trend in city dining, but there's a new kid on the block. the keurig green mountain coffee truck could be headed your way offering up free cups and we've got one. is allen back in line? we'll be right back. e healthcar. at humana, we believe if healthcare changes, if it becomes simpler... if frustration and paperwork decrease... if grandparents get to live at home instead of in a home... the gap begins to close. so let's simplify things. let's close the gap between people and care. ♪

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welcome back. the stock market hitting new records and e-trade reporting they hit double digits last month. where are the retail investors and what will it take to get them back into the market? joining us is tom liedion along with our very own bob pisani. welcome to you both. >> thank you. >> we wanted to talk to you specifically to see if there's something with etfs that is driving this drop in volume or not. can you explain? >> it's been a slow steady ride. if you want a quick snapshot look at charles schwab, the largest custodian of etfs, over $200 billion and they continue to see ongoing growth, 20% just this last year. it's been amazing. >> so this is an e-trade problem is what you're saying? >> i think e-trade tends to have more active traders, although schwab has a trading activity account as well. >> a great point. is it the active trader that is

not as active and maybe the boy and hold mentality is back? >> the structure of etfs does make it very easy to trade the etfs without trading the underlying stocks so there's a little bit of a point here that etfs are contributing to lower volume. this has been true for many, many years, something else going on, tom, a little bit bigger. it's a little strange when we see volatility going down as the markets are hitting new highs. i think that the trading situation is telling us that the economic outlook is uncertain. the markets are at new highs and most of the people i talked, to you talked to active traders, they are flattening their position. they are covering their shorts a little bit. they are not sure what is going to happen in the next three to five. >> one aspect to that is active traders are only a small percentage of the marketplace. they are wrapping their arms around the etfs and embracing them in a way and where they are running from. >> etfs are in a lot of things,

like a cheap s&p 500 tracker or because of the double leverage product that you're in and out of in an hour. >> is it possible that the investors that are whipsawed going into retirement, baby boomers, that saw what happened in the 2000 and 2008, 2009, 30% declines, maybe they pulled their horns in in perpetuity. maybe they don't want to take a hit. maybe they would rather have no returns than risk their capital going into retirement. is that a possibility? >> yes. we have all become behavioral economists as a result of 2008. no more classical economists that would buy low and sell high. all acutely aware that the pain of the loss that we suffered in 2008 is much greater than the expectations that we have gains. >> how do you explain that we've hit new highs and the overall participation amongst the retail trader is still very low in the public is not emotionally engaged in this historic rally we've been having. the most frustrating thing for all of us here at cnbc.

that's the obvious answer. >> don't take it personally. >> well, i do. >> i think you're right. i think kelly mix a good point about are people much more long-term focused right now, and i think if you look at last year and the tremendous rally we had last year, the fear of being on the sidelines and missing it, people got very long term oriented i think under those circumstances, yeah. >> missing, when you know, when you look at the massive catastrophe we had a few years ago. the people that rode that out are the people that performed wet. >> this is the change for the good, david, if that's the case and a threat for people whose business models are built on churn. >> hedge funds hoping to have more volatility. >> it's not there. >> leaving the elephant in the room that's the federal reserve. >> yeah. >> and if you've had this inconsistent federal rate policy dampened the policy and it's changed the game from the way we all learned how to play the game

coming up. >> that's a really good question. >> how much is the fed responsible for, exactly what we're seeing right now? dudley said it this week. bill dudley, the new york fed head said i'm a little concerned about the markets because there's complacency out there and people may be taking too much risk. the head of the new york fed actually said the low volatility may be making people take too much risk. i don't necessarily agree with that, but i do think the fed bears some responsibility for this weird system that we've got right now. very low volatility with the markets at a new high. doesn't usually happen. >> echos of 2007. >> yeah. >> we'll leave it there for now, guys. won't be the last time we'll discuss it. >> can you imagine paying more than $1 million in property taxes for your home. that's what the ceo softbank pays in the state of california and robert frank will join me to break down the top property taxpayers in the new york area. the numbers are pretty shocking and tune into "closing bell" tomorrow for a fashion doubleheader. we'll be joined exclusively by the chief executive of gucci during the 3:00 hour and i'll

sit down with the authors of the new book, "the glitter " we'll be right back. i always say be the man with the plan but with less energy, moodiness, and a low sex drive, i had to do something. i saw my doctor. a blood test showed it was low testosterone, not age. we talked about axiron the only underarm low t treatment that can restore t levels to normal in about two weeks in most men. axiron is not for use in women or anyone younger than 18 or men with prostate or breast cancer. women, especially those who are or who may become pregnant, and children should avoid contact

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welcome back.

if you think your property taxes are high? robert frank joins me now with the top property taxpayers. >> property shop.com helped us find the top taxpayers. coming in is the former ceo of computer associates paying $565,000 a year for his mansion on long island. coming in at number 2 is brad jack. his place is out on the market for $62 million but you get a tax bill of $575,000. coming in at number one is ira rennert. a market value of $247 million. his property taxes are $609,000 a year. that's a bargain compared to

what people pay out in silicon valley. masayoshi. a bargain is all relative. >> if i'm doing the math right, that would be something like a 0.2% property tax rate on that $249 million property? these numbers -- >> sure. nothing. i mean, look, it's all relative. every community has a complex formula. when you consider that you're paying state taxes and you're paying styles city taxes, these are local property taxes and then you have got income taxes. >> what i'm learning is it doesn't sound like a large percentage but our readers are obsessed with property taxes and they're getting high. >> how are the schools out there? are you getting a good public school option for that kind of money? >> yeah. >> that is a big question for

most people. >> kevin, what are your property taxes? >> the number one most taxed county is west chester. they have very good schools. not so true for long island. >> i don't think it's an issue. i look and say it's a choice. if you want to pay $2 million, $1.5 million in taxes, it's your choice to do it. >> that's why i'm asking kevin. what do you think? >> i don't care whether you pay $200 million for your home or $200,000 for it. this is going to be a crappy investment for the next five to ten years. no capital appreciation on the assets. rent, do not buy any of this stuff. rent all of it. including the one for $200 million. let the guy who owns it pay the property taxes. >> that would be interesting for a change. thank you. up next, what's better than a cup of coffee to start your day? how about a free one.

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coffee tasting trucks throughout major cities today. new york, miami and atlanta. outside cnbc head quarter right now director of field marketing joins me now. probably not the greatest test case to be in new jersey today. but what do you hear about whether coffee trucks are going to be the next big thing? >> it's great. we're happy to be here today. everybody is loving our vehicle. we hear we're the greatest thing happen to their day. they needed that caffeine fix. >> so once you guys roll this out for real, how much is a cup of coffee going to cost? >> we're not charging anybody anything. we're giving out complimentary beverages to consumers and it's not just coffee. we brew iced. we have hot tea. >> is this just a one day -- we're not all going to see keurig trucks all over the

country? this is a one day thing? >> we'll be at various events throughout the country. >> i would always take a free cup of coffee. i would give it a shot for sure. >> yeah. coffee snob? >> starbuck's. >> we do have starbuck's. we have something for you. >> just to bring it back to commodities. coffee is up 54%. it's the best performing commodity and getting more expensive for the roaster. it's nice that they're giving us a free cup. >> it's got to be more expensive for you guys. >> say that again. >> i think we have lost the sound. >> oh, no. >> thank you for joining us. yeah, little zainy on the show. that's a good word for it. we have got shark tank coming up tonight. >> well, you know, small business in america is where

growth is going to happen. i'm depressed, kelly, about the news out of seattle. $15 an hour. sheer insanity. it's crazy. this disease has to be cut off at the hip. i hate this story a lot. >> we'll leave it there. "fast money" coming up now. melissa lee, over to you guys. >> we are live live in new york city's time squares. traders are dan, brian, karen and guy. a potential exit date for tesla ceo at the tesla shareholder meeting. >> what i am committed to is to be ceo of the company through volume production of the third generation car. that's somewhere in the -- i don't know -- four or five year time frame. and then i have to see how things are going at th