that will do it for "power lunch." "street signs" begins right now. >> stocking are seeing green, carr and home buyers may end up feeling blue. gold is in the red, but we are all about the beige. welcome in. it's a big recap how economies around the country are do. i am doing called stalling under the 2:00 p.m. embargo is up now. >> and all 12 districts, pretty definitive there. the pace of growth was described as moderate to modest, but clearly widespread. it expanded in almost all districts, and repeatedly throughout the report improved weather cited as boosting business. strong auto sales were reported, reported in more than half of the districts. the service sector grew in most districts. i want to spotlight manufacturing here. it expanded in all 12 districts.

the pace of growth picked up in all 12 districts. stlengt was in autos, aerospace, metal, and weakness in construct shun-related magic. from the beige book. turning to real stade, the one area where it was mixed, some districts saw growth, with you reason was -- diana olick talks about this all the time. labor market, a big area of concern, several districts reporting a shortage. we keep seeing that's correct wage increases were mostly subdued. i want to talk about lending here in a couple minutes. this is an area the federal reserve covers very closely. two thirds of districts reported a rise in loan demand, very significant, and credit quality and delinquent rates were said

to have improvement. mandy? is. >> a very solid beige book in the context of moderate growth. there's no surge in growth, but the growth we have is widespread, seems to be in all districts and in many, many sectors of the economy. >> thank you very much, steve liesman. in terms of the market reaction, guys, the dow was up by 15 points, what is it now? up by 15 points, the s&p was up by four points, still up by four points. we have not seen any reaction yet, so let's find out what is happens in botched. rick, what's your read? >> as always, looking at those statements coming across the wires, listening to the wonderful steve liesman, all's i can think of is will robinson. i think they're all lost in space on a central bank level. they're talking about no price pressures, when we can see what's going on with pork, we've been covering it all day, what's going on with gasoline. they talk about how loan demand is picking up, and all's we see

is housing just can't get anything started. talk about no wage pressure, and we see under labor costs soaring, yeah, i don't know. i think there's a huge disconnect. if that disconnect is wide, tomorrow morning for the ecb meeting we're going to be saying danger will robinson for sure. >> i was going to say, the one thing that stuck out to me, steve, in what you were reporting was a number of districts reporting a shortage of skilled workers. there's 10 million unemployed people, yet these the fed, not some small business owner complains and moaning and groaning. to me, with 10 million unemployed, we need to fix that. >> this is the conundrum of our time, brian, remember the song water water everywhere, but no water to drink. >> there's workers everywhere, and nobody to hire. we keep getting the information, the nfidc number, all of the

data shows the shortage of skilled workers, along with tremendous labor slack. >> other skills, but not the required -- >> or they don't have the skills, period. there's also a legitimate questions about the willingness to produce those skulls. >> no, company, company. >> companies increasingly look to the state, maybe bay they've been trained by the pavlovian way. >> we with look to the state for everything. >> that's where we are, this repeated shortage of skilled workers. >> don't get me angry four minutes into the show. >> i'm sorry. i just report the facts. i can leave if you like. >> we have a debate coming up. >> we do have a debate. yesterday we talked of the economy and the backup strong car sales. today let us flip it and ask if we're building the economy in the wrong way.

for your consideration, the average size of a newly built home is 50% larger than just 30 years ago. the average price of a new cars, now dlsh and the average student is carrying $29,400 worth of tuition debt. biggers cars, bigger homes, bigger tuition debt, can the fed ever raise rates, or are we stuck with? let's bring in the money coach, author of "zero debt, the ultimate guide to financial freedom. steve is here with us. thanks for coming on, by the way. the reason we wanted you on, you guys were more on, all the build on shaking ground with bad debt at the bottom. do you agree with that? or are we okay? >> no, i think we definitely have excessive debt levels in america any way you cut it. by some standards, about about 1 in 3 borrowers are in default or can't even afford to pay the loans back on time.

that's clearly a big problem. 800-plus billion in credit debt, the more debt you just mentioned, car notes, which are increasingly becoming car mortgages we call them with longer and longer repayment periods. clearly there is a debt problem in america. the question is maybe who is at fault? what can we do to fix it? how do we go about to get americans to unwind a bit? >> it's oversimplified to say you've, rates are so low, and basically i'm going to load up and get everything, or are we at fault because we're not responsible enough? >> i think there's a lot of finger pointing to go around, a lot of blame to be assessed, but one key factor is you can't blame the fed for everything. yes, a low interest rate environment has prompted people to say buy more homes or to refinance or look at cars and say, hey, all i have to work about is the low monthly payment, so i'm going to get a new or used vehicle.

for other areas, student loans and credit cards, absolutely not. the student local crisis is a huge problem. we can't put that on the fed. let's talk about the bloated cost structure at a lot of colleges. let's talk about the fact that a lot of these college presidents are being paid. let's talk about a shortage of state funding. >> the whole different topic we can't go on and on about. >> there's a lot of other issuing at play. >> how long did you and i work together? you don't want to say, do you? in all that time we mostly agreed on everything. i disagree from a macro standpoint. i think the problem is we don't have enough debt. >> not enough? >> we don't have enough debt. if this economy were healthy debt levels we're substantially higher, because consumers felt the confidence in their jobs and in their future ability to earn to take on more debt. what is my first chart will?

why should our debt levels be back to levels we haven't seen since, i don't know, 1980? >> the reason why is because it's unsustainable. >> what's the right -- i don't know if we have any those charts. any one of my charts would prove my point. >> here's another thing. let me make this point. one, excessive debt levels are simply unsustainable. two, it's not the job of the individual consumer to play the role of financial hercules. why should we have to bo aro to prop up the u.s. economy? i get the aggregate. >> debt is always pointed out as a negative thing debt is the great bridge between working hard and playing hard. this country has been built on consumer debt. we innovated on it. it's not a negative thing. too much of it in the wrong place is a bad thing, but overall debt levels are very low, a sign of terrible confidence in the economy.

>> i'm going to agree with steve just a bit. not all debt is bad. let's say i have enough to pay off my mortgage. i can re-fi into a 3%, but i can buy at&t stock, which gives me a 5% dividend yield, i'm still kicking off 200 basis points, 2% of basically free low-tax income. it benefits me to keep the mortgage and buy equities. by the way, this is what the fed has done, right? they've jacked up asset prices by putting that air gun of asset price inflation under things like stocks. >> anybody who knows my story knows i don't talk about debt in the aggregate to say it's always all bad. i'm a person who once had 100,000 in personal credit card debt alone. i paid it off in three years and then wrote this book about it, zero debt. i understand that, a, we all have responsibility and that some forms of debt can be quote/unquote good debt. what i have a problem is the excessive levels of debt we have seen on the student loan front.

for car loans now increasingly, and insteadr indeed even for those taking on educational debt. yes it's an investment in their future, but at what cost? >> we need to button it up. >> how did it all unwind? when -- >> they can't, mandy, they could. >> student loans is a separate entity, in the sense that i believe the money the government puts into student loans actually jacks up student tuition costs. so i think that's a big part of it. we have to be careful there. >> i agree. >> but i believe in it's unwound. the deleverages by the consumer has been going on essentially since 2007-2008, we are now at the bottom of the credit cycle. where we go from here increasingly hopefully in a prudent way is up, that consumers feel healthy enough, confident enough to take on a business more debt.

>> very quickly, bottom line. >> too much debt, way too much debt, mortgage debt, auto loans, student loads, credit card debt, we need to pull back. >> we need to go and the producer will slap us upside the head. sorry, paul. a smart viewer points this out, because the beige book looks so good, steve, does that increase the risk that taper will continue to go up? why do we need these fed programs? the beige book is 12 of 12 positive. >> no, i don't, because i didn't see an increase in the rate or pace of growth. it is wide did spread, good, robust, and i didn't see them saying growth increased at a faster rate. moderate and modest are the governing words there. >> that was paul slapping the side of our head. >> good debate, though. >> thank you, guys. we have big news on oba obamacare that should change coverage, the news just developing. stick around. and a mystery chart for you. this stock has been chugging

along this year, up 50% since january. we'll tell you the answer later. and also from a mystery chart to a mystery location. we are counting down the top three global hot spots for housing. coming in at number three, estonia. yeah, estonia. who knew? home prices dumping over the past year. we'll tell you where the others are when "street signs" returns. s with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity. because at scottrade, our passion is to power yours. over 1.2 billion eyeballs are on us during the two weeks at wimbledon.

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a new all dilled says there's dealta discrepancies impacting as many as 2 million people mo signed up on medical exchanges. bob, does this mean that these people, the 2 million people reported and these are hhs numbers, by the way, we should say -- are not now going to be covered? what happened? >> no, it doesn't mean that. it means think provided hhs, the federal government with their enrollment information, citizen status, legal resident status, income status, and the information they provided doesn't match government systems, so the feds have sent out letters asking the people to correct or justify what they put down. but the problem here, brian is the back end of healthcare.gov hasn't been built, so when people send information in on their citizenship status or income, it goes to a federal contractor in kentucky, who

simply sticks it in a pile. the government has no means to reconcile these numbers right now, because that part of the back end hasn't been built yesterday. >> is this a situation where people have been willingly given incorrect information, or system more a problem with the database? >> it's probably both. a million have to do with citizenship status. they said they were citizens or legal residents, and the government can't find them in the system. that doesn't mean that the government system isn't wrong and the people are right, we don't know, but we're talking about 2 million people. you could also have a situation where people put in an income which is too high, which means their subsidy lieutenants taken back or they put in an income that was too low. the fundamental problem is we have launched obama care, enrolled millions and we can't

manage the enrollment. they say there are 8 million enrollments, but insurance companies will tell you 10 to 20% of people don't pay their premiums. now we have 2 million enrollments, the government can't make complete sense of, it doesn't mean they should be or shouldn't be enrolled or did or didn't commit fraud, but they can't reconcile it. they launched this without the back end of the system built. >> do you think they're going to cross-references income data on the obama care platform with the i.r.s.? in other words 1.2 million of these 2 million is income discrepancy. i don't know many people who don't know their income. will they match it up and say, no, no, you're obviously trying to get a larger subsidy by ratcheting down your income, or it could be an innocent mistake.

>> no, this is a situation where the government can't reconcile the information and can't catch people who either make legitimate mistakes or are committing fraud. >> what do you mean can't catch them. cross-reference it are with the irs data. >> that's right. we were supposed to have the federal data hub, which was supposed to accurately cross-reference this data. you can't have people showing up asking for subsidies without the government being able to verify that. the congress last year during the budget deliberations called secretary sebelius, and she promised them that she would not provide subsidies to anybody who went couldn't verify the income on. remember the big dustup last fall that said obama care wouldn't -- and the administration says oh, no, we'll be able to verify it, that's not going to be a problem. here we are nine months later and there's two million files they can't verify. >> it seems like thing will keep

on good. thank you very much for your take on it. meantime the solar wars are heating up. we have the story on the real impact just ahead. >> plus a big bet on lobster that turned out to be butter. we'll explain that to you. [ indistinct shouting ] ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade.

dare we say that solar stocks are on fire? there's a reason. things like first solar and sunpower are moving higher on the news. as expected, the solar companies based in china are lower today. i had a brain freeze. >> you were just trying to think about it in chinese. >> that's actually not. i just screwed up. >> it's all chinese to me. right here in america, all day long jackie deangelis is looking at the future of solar, she joins us out there in the sunny mojave desert with more. jackie? >> hey, good afternoon, mandy. that's exactly right. we are here in the mojave desert. the obama administration really

wants to make an impact on climate change. that was evidence with the epa draft rules released on monday, targeting a 30% reduction in carbon emissions by 2030. that's why these plants are even more relevant than before. the ivan pop project takes 400,000 tons of carbons out of the air, like 72,000 cars off the road. the epa estimates that the solar start project, where we are now, could reduce carbon emotion to take 2 million cars off the road over the course of 20 years. they plants also cede a lot of jobs, us on the agenda. during construction they employed over 2600 people. over the life of the project, tend generate -- the scale of these projects is massive. this is a $100 billion industry we're talking about growing at a rate of 20%.

that gives us a sense of what we are looking at any accident and how important these projects are. we literally changing the way we are fueling the future. back to you. >> thank you very much, jackie. all month long we've been asking the sharks, hey, what has their best investment been? barbara cochran says hands down, the big bet on seafood. >> the brgs investment is cousins great lobster. ty moved to the west coast and have beautiful trucks that sell lobster rolls. >> we watch every show before we went on, learned the question, with the traditional lobster roll is $13. 150,000 in sales. we've been opening two months. >> we were really only willing to give up 5% of the company, we

had been only open a couple months, so we wanted to keep as much equity as possible. >> we're seeking $55,000 in exchange for 5% of our company. >> it's outrageous what you are asking for. i can't take it anymore. for the sake of the lobster that are still alive, i'm out. >> let me get my hands on that business and i'll tell you everything wrote it. $55,000 for 15%. >> welcome to the family. >> i'm their chief pain in the neck officer at cousins maine lobster. i see their truck. if there's a hubcap missing, i'm annoyed. if there's a scratch on the sign, i'm doubly annoys. >> it wasn't so much about the money they were taking in, but more about what we were going to get for the equity, and -- >> our business started with one food have you can here in longs. we have three working food trucks in l.a., our own catering division for private catering in los angeles, a huge online

program, over 40 products you can ship from maine to your house, next day delivery. >> countrily today 3.5 million, since "shark tank". >> in hindsight, i should have offered them million 51% of that business, because the business is making so much money. they have paid me back my money. i'm making money hand over fist, and they're going going going. >> our private message to barb is, we love you, we know we're your favorite, mwah, thank you for everything. >> one firm is betting on a casino stock. street talk is on deck. and last chance to guess the mystery chart. the first hint was that the stock was chugging along. how about the sect. st. patrick's shamrock. the answer when "street signs" returns. okay, listen up! i'm re-workin' the menu.

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it's time for the rundown. i feel like i'm in cat in the hat. stock number one is underarmour. >> stock's up forhan 5%. jeffrey citing the company's

long-term growth potential and increased the target on underarticle more to 65. so they see about 30% more up side to the stock. they think sales can exceed 15 billion, and this stock, by the way is outperforming nike by more than 50% over the past 12 months. credit sweet says place your bets on -- >> this is your casino going into the break here. and they're raising their target to 33 from 30, so about 7-plus bucks to the up site. analysts noting that mgm is well placed for the forthcoming las vegas recovery. i thought it already had recovered. stock number three, arguo, initiated buy, but it's not really helping the stock today. >> no, oracle down 0.1%, but maxim group setting a price target, about 14% higher than what it is now, but here as something to be careful about, it's wilt more bullish targets

out there. the average is 42. the stock is at 41.75, so most of wall street now sees almost no up side. and broadcom getting an upgrade from drexel hamilton. broadcom shares are up -- well. >> let's call it 3%. >> round her up. >> the average rating is overweight, dropping what they call the cellular-based fan business. the increase target prirsz 15 bucks 245, they should have made the call a month ago, stock's up 19% in the past 30 days. as always, under the radar stock, this is trying to help you find those undercovered opportunities today. the name is rex nord. i've never heard of the company before. >> it looks good, sounds good. they're a milwaukee-based industrial company largely in

the wastewater business. this stock was upgraded to overweight at barclays. they increased the targets from to 37 from 26. the stock is already up 33%, so rex nord, barclays loves them. get yourself a hamburger and soft-serve. that's a mick walkee institution. and we're going to doubled up, because not only are question doing "talking numbers" but it's also a mystery chart. the answer -- trinity industries, railcar maker, the chugging along, right? shamrock, blah blah blah. let's bring in mark newton on the technicals and andrew burkly from open hyper on the fundamentals. mark, the stock has had a big run, and you're a fellow hokie, so there's your courtesy. a big run for a relatively low

growth name. how does trinity look? >> it looks good technically, brian, the stock is up over 30%, over 135% since last june, so really it's right up to the last four days. patient investor aring being given a chance to buy dips. just in the last four days down 7%, but we haven't seen any sign of technical trend, so if anything, this pullback should be a chance to buy. a weekly chart puts things in a different perspective. they've tested these highs, consulted, and just took off and broke out last november, a lot of people might say that's a time to avoid it. i don't want to buy a stock breaking new highs. oftentimes when you see it -- to provide the chance to buy, we saw the acceleration, so we see signs of any sort of technical trend damage. you certainly still want to be in this name and use any chance

of selling off to buy debts. it's not a reason to avoid a stock like this. >> what about the fundamental sigh, andrew? >> i would definitely agree with mark. it's a buy on the dip. from a macroeconomic perspective, it's the time of name you want to be in, a domestic cyclical infrastructure recovery story. it's a play on the mobile pipeline in terms of the railcars getting all the shale oil from the middle part of the country. analysts have consistently been behind in terms of the eps numbers. the company has a big backlog of number, and the best part of this is it's very reasonably valued, trades about 11 times on the p.e. multiple, which is very attractive for a cyclical growth name. >> so we have agreement there. thank you very much, gentlemen. we can always check out the online edition of "talking numbers" in partnership with yahoo finance. dom, what are you looking

at, bud? >> look at smith and nephew, a medical device maker out of london, spiking around 9%, 10%, bloomberg is reporting that the medical device that medtronic is evaluating a takeover of this particular company. it's in the early stakes. medtronic also spiking up. you can see there about 4%. mandy, brian, remember smith and neff knew was rumored toss the takeover targets of another device maker, which is striae kerr. that just happened about a week or so ago, so it looks like this is a hillshire situation in the making, possible. >> thank you very much. i'm very excited, brian about this next guest, because, advisories, i do love my fashion. we've got on "closing bell", the ceo of gucci. kelly, is he bringing in free samples for you? maybe a belt or scarf? >> i know, bill really needs to be here.

patricio demarco will be here next hour. but they've done something really interesting under his watch, basically to reinvent themselves to more of alet are goods one, so the sales of purses, shoes, he's turned it around. they're booking, i want to say one of the best profits and probably the second biggest retch in the luxury space right now. >> you should also ask him about how they're battling all those fakes over in asia. you know, not just quite right, but all these rip-offs. >> i because a rolex with two ls. >> and it's working, by the way. >> no, it's not. i gave it to the actor jeffrey tam, tambore. >> jeffrey, keep it.

i think one of the secrets to not getting ripped off quite as much, is just to de-emphasize it is label, focus more on the quality product. >> indeed, well said. enjoy the interview. >> kelly, one favor. >> did you just ask one favor? ivities just of you, my dear, which is to tell gucci that xl needs to be bigger, because -- >> xl. i shimp thiz, brian. >> gucci's extra laurge is like most people's small. i look like ich wearing a half shirt. so no. >> i feel your pain. >> no, you don't. kelly, thank you. >> not that i buy gufi, but most people don't make a long enough inseam. >> kelly, you and i, you know what we go? tpp, tall people problems. >> i can wear gucci. >> you don't have that problem. leaders of the country's

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bob pisani is at the global exchange conference with a special guest. >> hello there, guys, we're joined by eric nol, the ceo of the big brokerage firms on the street. we're talking to all the heads of the brokerage firms and exchanges. eric, thanks for joining us. what's going on with the retail situation? volumes started off strong, but they dropped off dramatically. suddenly the ten-year yield is dropping. what are the ceos saying about what this means for trading in the economy? >> i think we've all seen the dearth in trading volume in the economy. i think there's a couple factors adding to that. if you look at the historical volatility, it's barely, not even in the teens now, barely above 10, i think it's between 11 and 12 today. volatility is a key factor in the marketplace. i think another interesting phenomenon that's going on out there is there's a lot of correlation going to 1.

so owning the market, so owning an index, owning an etf that represents the index is going to give you good returns. so there's a tendency out there to really consequencen trait on owning the market as a whole. >> unterrence mean they're not as long as they were, not as short as they were. mark is just compressing. >> people's risk appetites have been compressed, and when you look at things like the ten-year yield and the fixed -- i think the world believe there's a put by the overall economy so there's an underlying floor under there, and people have not been able to break out of that low volatility environment that's been created. >> the second hot topic, high frequently trader and what the response to the ftc might be, you were just on one of the panels with one of the ftc members.

what if anything do you think will come from the s.e.c. this year in response to high frequency trading, or is the response necessary? >> i think it's a complicationed shy. it has multiple factors to it. what we should really do to identify, and which i aplay the s.e.c. for, let's identify the problem as opposed to a actor or type of actor, but what is actually the problem? i think the areas is transparency for -- i think they'll look at differences in data speeds between the fixed and proprietary feeds and they'll look to eliminate those differences, to sort of eliminate the problems that were identified. >> before i let you go, what is about the technology? that would require standard technology testing to make sure we don't have as many technological glitches. do you think that regulation will pass this year? >> i do think it will pass this year. there are some real questions,

does it cover enough people and enough of the issue? i think one of the problems with regulation generally is that we're always solving yesterday's problems. we have not yet figured out what the problem is that we're going to try to solve. i'm concerned we become complacent about the issue and we have a problem we -- >> e., thanks very much for joining me. i'm going to be here the next day and a half, talking about what's driving trading and what -- brian and mandy, back to you. >> thank you so much, bob. we are about to reveal the hottest spot for housing in the entire world. and then we are headed to one of the hottest housing spots in america. that's silicon valley. we're going to look at the sort of increasingly bizarre culture of the valley. we'll speak to the guy who wants to represent the valley in washington, d.c. he has the backing of some of tech's biggest names. stick around.

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estonia came in third with home prices climbing more than 16% over the past year. number two, china. home prices there jumped more than 17%, so may be in trouble now. coming in at number one, brian? a place that never does anything in houses. >> dubai? >> yes, home prices in dubai jumped 27.7% over the past year. does that make you nervous? >> i was in dubai, 2009 when their first real estate boom collapsed. people were literally leaving 100,000 cars at the airport and taking one-way flights home to avoid debt. they were so out of work, just fleeing the country, now they're back. >> i was there in 2009. it was like a graveyard of cranes, half-finished condos, but the cranes literally just left in place. and we didn't come across each other? >> that's hard to imagine. champagne wishes and caviar

dreams. no, this is not the old lifestyles of the rich and famous. likely just a normal lunch now in silicon valley. the new hotbed of cash and billion dollar 25-year-old, what is the real silicon valley? kevin rusemoney," smart guy, interesting guy. kevin, you spent a lot of time out there and we called attention on this show increasingly to what is yesterday sort of fantasy land. silicon valley is increasingly just like not america, is it? >> absolutely. well, i live in the bay area now. used to live in new york. >> you and everybody else moving out west. horace greeley. >> did you ever see the movie "blank check" about a little kid who gets a blaming check and writes it out for $1 million and spends it all in six days on batting cages and limos and water slides. san francisco right now is a little bit like that, but there are 10,000 of them. i mean, it's really a play place for the young and the wealthy. i was just looking at my e-mails

and saw there was something about a brunch party that was happening a few weeks from now that costs $315 to get in to a brunch party. that's something i've never seen in new york as long as i've lived there. >> the amazing thing about history it tends to repeat itself and when anything gets to a level of excess you tend to have a boom and then a bust. is there any inkling that this could somehow end, any inkling that this party will not go on forever? >> sure, people are definitely worried about it. spoke to some start-up investors and founders who say they will trying to get as many deals down now as possible because there's a sense that the window might be closing, but if you talk to people, they are really intent on justifying the valuations of these companies and the fact that even if a couple of them don't succeed as wildly as people had hoped that it won't bring -- we won't have 1999 or 2000 all over again. this is not the same bubble we had last time. >> but it's interesting, kevin, it's not just the technology

valuations, right? silicon valley -- by the way, i love it out there because people do what they want, right? the rest of the world you need 72 permits to put something in your own backyard. seems like silicon valley operates under the it's better to beg for forgiveness than ask for permission mandate and do what they want. >> exactly. >> and change it later if they have to. >> exactly, and we're seeing this all around the start-up scene, a sense in which the companies are now starting to get into areas highly regulated, education, transportation, health care, things like that. places where they are butting up against government regulations and so there's a sort of growing feeling that silicon valley needs to be left alone. investors who have proposed splitting it off into their own states. it can make its own rules, and this is really a feeling that's starting to bubble up where people feel like the startups, what's going on out here are being held back by the short sightedness of government bureaucrats. >> it's really interesting stuff, but you know what, brian and i, we were talking last week

about the snap chat ceo and the filthy e-mails, if the ceo of say a financial company and an energy company did that, they would probably be fine. get away with it in silicon valley. got to leave it there, thank you. >> the race to represent silicon valley in congress is heating up and incumbent mike honda has been in congress for 14 careers now and some really big tech big wigs just don't think he understands their industry well enough. marissa mayer, sheryl sandberg and eric schmid are supporting his candidate and he joins us now from silicon valley. great to have you here, sir. have some pretty big backers there and to the discussion we had a moment ago what would you do to just try to bring silicon valley maybe a little bit down to earth and close that growing gap between the really, really uber rich and the poor? >> i appreciate you having me on, and i think the challenge for snowfally is how we help the

middle class become more technologically proficient and have a chance at being entrepreneurs and that we take the thinking in a way that's going to help the middle class get jobs in the 21st century, so i think silicon valley has to think about what is good for the country, not just what's good for the companies in silicon valley. >> it's good to help the middle class, but the middle class can't afford to live in silicon valley. 40% of home sales are for more than $1 million around the bay area. what does a teacher do, a fireman do, what do people not internet billionaires do in your areas? how do they live? >> it's a huge issue. i mean, kids graduating with college debt can't live in the communities they grew up. teachers can't live there often, fire fighters. they are having to live outside. affordable housing and having a public/private partnership to have these in our communities is a huge issue in the district and there is an obligation as you pointed out in the show for some of the tech leaders to say,

okay, we've benefitted from innovation and technology disruption but what's our obligation to the rest of the community, to the rest of the country, to make sure other people have the same shot in having that success. >> well, thank you very much, and ro khanna, appreciated your time. asked an interview from mike honda but have not heard back from his team. >> the pork-pocalypse. >> this is like the westminster kennel club and one startup in ames thinks it may have found a partial solution to a virus that's wiped out as much as 10% of the nation's herd, that when we come back. ♪ ♪ over 1.2 billion eyeballs are on us during the two weeks at wimbledon. true tennis fans want to know what's happening, they don't want to just see what's happening,

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to prove to you that aleve is the better choice for him, he's agreed to give it up. that's today? [ male announcer ] we'll be with him all day as he goes back to taking tylenol. i was okay, but after lunch my knee started to hurt again. and now i've got to take more pills.

♪ yup. another pill stop. can i get my aleve back yet? ♪ for my pain, i want my aleve. ♪ [ male announcer ] look for the easy-open red arthritis cap. the pork-pocalypse is here but, jane wells, you say there could be help. >> reporter: the judge right now is explaining why he likes every particular pick, the way and shape of it, the sorts of thing when you leave california right now. here is the deal right now. pork production could be down as much as 6% this year in the u.s., according to one predicti prediction. pork retail prices up as much as 12%. virus killing millions of pigs, no cure and surviving pigs are not showing as much immunity as expected. the so-called p.e.d. virus

showed up in the u.s. a year ago, possibly from china transmitted through feed or even fecal matter which moved around from trucks to the soles of shoes. farmers who dodged a bullet are having great years, fabulous mar egyptian but no one is feeling comfortable. >> this is by far been our biggest challenge. >> i'm not naive enough to believe that one day we probably won't be exposed to the virus, but we're doing what we can to minimize that risk. >> reporter: a startup out of ames, iowa, harris vaccines, has a p.e.d. treatment approved but the usda to be used and it's in the final stages of getting fda approval. >> what we're seeing in the field is that farms that are struggling at 40% or 50% mortality are able to bring down that mortality rate significantly to maybe 10% to 15%. >> reporter: it could be huge.

now, they sell other vaccines. last year the company sold a total of 800,000 of those other vaccines. guys with the new p.e.d. treatment this year they are on track to sell 5 million doses. back to you. >> it's a serious problem but i'll tell you this much, jane. that hog behind you the whole time wasn't listening to anybody. had a mind of its own. >> that hog will be mine later. >> bring on the pork. thanks very much, jane. "closing bell" is next. see you tomorrow. welcome to "closing bell," everybody. i'm kelly evans down here at the new york stock exchange. >> hi, and i'm tyler mathesson here at cnbc headquarters. i'm in for bill griffith. stocks kicking off the day in red and after a comeback on all-time high watch. dow needs to gain 21 points to hit a new closing high, and right now the dow is up about six points