>> maybe if barbie had google glass she'd start the trend. >> we promised you mountains being blown to smithereens. "closing bell" gets the honor and privilege. for me to listen to bill griffeth call a mountain explosion is a dream come true, bill. you are like a british soccer announcer winning the world cup with this, buddy. show how it's done. he's over there. >> enjoy. thanks for watching "street signs," everybody. hi, everybody. welcome to this explosive edition of the "closing bell." i'm kelly evans at the new york stock exchange. >> i'm called many things but never an exploding mountain. we'll get to that a little bit later. i'm bill griffeth here at cnbc headquarters. yo, kelly. in the markets today, no follow-through after the fed helped fuel that late rally we saw in stocks yesterday that pushed the s&p into record territory. now equities are not following

true but look at gold today -- up 40-plus dollars, back above $1,300. a lot of traders are wondering whether the market is responding to janet yellen's comment yesterday that the inflation data has been nothing but noise. >> we'll get into that in a moment. private equity legend jay jordan says this market is overpriced and too risky right now. where is he putting his money? we'll ask him in an exclusive interview ahead. >> looking forward to that very much. also, netflix trading lower today despite that major announcement that chelsea handler is moving her late night show to the streaming video content service in what is being billed as an historic move. but the market is not buying it. not impressed. you'll hear from an insider who says this movie is not a slam-dunk success for either netflix or chelsea handler. that's coming up.

here's where we stand in the markets right now. stocks under a little bit of pressure a day after the s&p 500 set a new high after janet yellen's comments and the federal reserve's decision. that was yesterday, of course. the dow shedding now 12 points. the s&p about a point. the nasdaq off ten. bill, as you mentioned, a lot of focus on moves in gold and in the treasury space as well. >> let's talk about it all, as we say yo, yes, i'm already tired of it myself. dick burridge, heather hughes, jeff taylor, and our own rick santelli as well. heather hughes -- >> yes, sir. >> gold. >> gold bugs. jitters. huh? >> is that for real? >> heading higher? yeah. well, look. we're all wondering if inflation, if we're going to get an uptick in inflation as we have already seen one from april to may right now. i think look at food and fuel

even. not just gold. that's what's important i think to middle class americans and the retail investor. you go to the grocery store. food prices are rising. you go to the pump to fill up your gas tank. gas prices are rising. i think that could be a concern on the horizon. that's why you are seeing some money move into gold perhaps. >> peter anderson, how do you tie that back to what's happening in stocks today, what's happening in the bond space? >> well, i was really happy yesterday with the results of the press conference. i thought chair yellen did a fantastic job. i have been a critic in the past, kelly, and i think this, her second press conference, she is really getting the training wheels off and being much more clear. i think the one thing she might regret is what you opened the show with, talking about there is the noise of the data. and that might be triggering a gold price increase just because people are very much very nervous watching and hanging on every word she says.

that being said -- >> do you think it was appropriate for her, peter, to say that stocks were not overvalued right now in her opinion? >> bill, that's another amazing thing. i'm watching this thing certainly with the interest as an investor and portfolio manager. but just as an academic, you are listening to these things she's saying. it is truly a new age where she is being so forthright with disclosing, giving opinions on everything. even volatility in the market. 10, 20 years ago, you would have never heard a fed make those kind of comments. so i do think it is a very new thing. i'm not certain how it is going to play out. if you ask me, i think it might be too much disclosure, but hey, that's the plan we're given and we have to learn to work with it right now. >> we all asked for transparency. we wanted a federal reserve, our chairwoman or chairman, that's transparent. in short, here we go it. >> that's for sure. dick, do you like stocks here? do you think that they are

overvalued here? >> i think smaller stocks in the u.s. are overvalued. they're extended, they're in the middle of a correction. larger temperatures i think are fully priced. i do think before the bull had market is over in the u.s. you're going to see stocks 20% or 30% higher. lot more volatility between now an then as we get there. on the other hand, i think the rest of the industrialized world and japan and in europe stocks are still very reason briably priced. we would ship more money from the high-quality u.s. companies, to high-quality european and japanese stocks. >> jeff taylor, let's talk about why this happened this afternoon. it seemed as though -- this is what our caption was just indicating as well -- perhaps it ties back to the tips auction. a sense that inflation expectations are moving higher. do you sense some regime shift here under way? >> i do a little bit. it is interesting. you look at interest reports, still historically low yet the

housing market is still not coming back. we're on track but you still aren't seeing the first-time home buyer come back to the market. >> do you fade this move if you don't think this is sustainable? >> i think it is going to come back to us, yes. >> in stocks. what about gold? >> gold i think is kind of fairly priced right now. >> all right. fairly priced there. you're worried about a little bit of a move back in stock. >> okay. >> what about you, rick santelli, why is gold up almost $50 right now? >> because i think whether you look at the white house, you look at foreign policy, you look at congress, or yesterday's fed meeting and the answer to the inflation question. i think there is a nervousness about how the country is being run from kind of a corporate boardroom perspective. we all understand that if you don't have confidence in the board you're not going to necessarily like the stock price. think that's what's going on with gold. listen, if you think continuity isn't a great theme for new fed

chairman or you think foreign policy is up in the air, or you don't like government entities that lose e-mails and hard drives when you're not allowed to do the same thing, maybe gold does look like a pretty decent investment. i will tell you this. it's pretty amazing that the war between below-trend growth versus higher prices really, in many ways, changed yesterday with janet yellen and steve leisman. kudos to leisman! because if you don't appreciate the attention given by janet yellen to pricing pressures in xhot t commodities, make it makes you nervous that continuity at any price may be a flawed strategy. there was a huge turn in interest rates, though this have moderated a bit. philly fed gives you two things no others do -- priced received were down 2.9%. think about what that says. prices are going up but it is hard to pass them along. doesn't sound like a winner to me. >> we'll talk about inflation

expectations next segment. >> what rick is saying has some people in the equity space worried. it is ultimately margin pressure. that heather, should margin pressure be a concern here? >> yeah. again, food and fuel are most important i think to middle class americans and the average retail investor. equities markets still seem to do okay thus far. it seems like not even deflation is derailing these markets or geopolitical tensions which maybe also leads to the fact of flocking to gold as a safe haven. we crossed the line in syria. right? markets ignored it. putin's advancement in ukraine. markets ignored it. even now with the civil unrest in iraq, markets are still ignoring it. they seem pretty resilient right now. i'm not sure what could crack these markets. if not inflation, a mini ice age? i'm not sure. >> that's the question i've been

asking, peter anderson. what would cause a 10% correction in this market finally? what's this market waiting for here, do you think? >> well, i think if you cannot find any more stocks out there that are undervalued, bill, then people are going to start to get impatient and they're going to start to conclude that everything is overvalued. but i have to tell you, bill, right now that just is not the case. to bring this conversation back to what we're all interested in which is how do we make money in this market. i would say that you can still find stocks in certain industries that are -- say they are addressable markets, for instance. they are still not recovered. you look at s&p 500, it is back or above where it was from 2008. right? but there are most industries are like that, too. however, there are some companies out there that are not back yet to that level. they're back to, say, 2002, 2003 levels. those are the things i get excited about.

as long as there are things like that out there, i'm not expecting a wholesale correction like that. >> kelly? real quick. did you notice wall street article? $241.2 billion in buybacks and dividends year to date. that blows away the last time it was anywhere near here was the fourth quarter of 2007. ponder that. >> rick, rick,er who's what's interesting though. this year to date is the first time in the last couple years that the dividend and buyback indexes aren't outperforming the s&p. so for once it seems as though that's not the only way to make money here, at least from the investor -- >> it is a contributing factor. >> yeah. it certainly is. look, travelers, as we learned, bought back 58% of their float after starting that share buyback program in 2006. >> that's how they're putting their cash to work these days. not the traditional way in capital spending. >> or borrowing. >> we're going to morph to iraq now, right? right. president obama saying the u.s. is prepared to take tarring and

precise military action in iraq if necessary. >> michellearuso -cabrera is in iraq. >> reporter: the price of oil rose during president obama's announcement. brent climbed to above $115 per barrel. one oil trader told me the reason was because even though the president announced limited military action, the plan that was announced was hardly one that was enough to secure iraq. still the president did say that under certain circumstances he will act. >> because of our increased intelligence resources, we're developing more information about potential targets associated with isil and going forward we will be prepared to take targeted and precise military action if and when we determine that the situation on the ground requires it. >> still the president was quick to follow up and say he would only send 300 military advisors and that would be it.

>> we always have to guard against mission creep. so let me repeat what i've said in the past. american combat troops are not going to be fighting in iraq again. >> reporter: so we'll be waiting to see if and when that precise and targeted military action comes. guys, back to you. >> all right, michelle. thank you very much. we have a news alert on apple regarding what? their smart watch? >> the detail dujours about that possible smart watch apple launch here are coming via reuters citing sources familiar with the matter. production of the apple smart watch will begun in july, reuters citing sources familiar. some suppliers being named, south korea's lg and singapore's

bas bas based hectogon. apple aims to ship 50 million of these smart watches in the first year of the launch. the launch will feature a 2 1/2-inch arch screen and wireless charging capabilities. a we could see a watch land in retail stores as early as october just in time for the christmas shopping season. so again, some details now. we've heard all kinds of rumors before but this one now coming from reuters citing sources, giving at least some product spex as we specs and naming possible suppliers and a mass production date as early as july. >> i love the timing. you think this is tim cook saying to jeff bezos, take that, throw a little water on their fire phone? >> look at the shares, bill, staging a bit of a comeback on the news. certainly going after that market. more details for now. 45 minutes to go to the close here. little bit of comeback for the indexes. the dow only negative by about five points, 16,900.

coming up, permabear harry dent says he's taking profits now because the dow is heading all the way to 10,000 by early next year, then 6,000 the year after that. we'll get the case of why -- what does it say now? why he's way off as well. somebody's going to take the other side of that trade is what we're trying to say here. also, fed chair janet yellen saying inflation may be here but it also might not make her raise rates. how does the stock market do in that kind of environment? we'll ask. >> something everybody's been talking about today. you thought earnings season was over, right? well think again. oracle's results are due after the close. we'll have the numbers, instant analysis and the reaction in the market for that tech bellwether. that's still to come on the closing bell. yo. we needed 30 new hires for our call center.

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welcome back with some breaking news on who will be the next house majority leader. john harwood has the details. >> we've just gotten news that out of the house republican conference that kevin mccarthy has been elected the new

majority leader to replace eric cantore who was canter ha wwho was defeated in primary last week. there is still the process for selecting the new number three in the house republican leadership. we're awaiting the result. but kevin mccarthy, 49-year-old californians with a genual position, he had been the whip, the vote counter in the house, has taken the new role of majority leader. because i have lost connection with the ifb and can't hear you, i will toss it back to you. >> thank you, john harwood. as expected, kevin mccarthy getting that position. gold prices rallying more than 3% today above $1,300 for the first time in nearly a month. >> jackie deangelis, are these inflation fears behind the move or is this more about unrest across the middle east? >> hey, well, you touch on a lot of points there, kelly. a big day for gold by all accounts. at the close today we were up

$42,4 42. first of all, janet yellen's comments yesterday trying to talk down inflation in some ways without making gold traders pretty nervous that it can actually come back and bite the market. you had some short covering there and also some new buyers into the market. in addition it appears that funds are repositioning a you little bit right now. we had a very strong stock rally. that's where a lot of money was but people are feeling the need to diversify at this point but they are looking at gold because it was a very lackluster performer. a leg up like this today, i've asked traders is this a one day move or the kind of thing that triggers a sharper move higher. they definitely said they are looking for gold to continue higher. tomorrow could be another crazy day in the pits but $1,350 is the next expected level. federal reserve chairman janet yellen said yesterday despite the "nosey data," inflation might not make her

raise rates in response. how will the stock market behave if we are in a rising inflation environment, bill? >> our panel is assembled. steve leisman, i think it was your question yesterday during the news conference at which chair yellen used the word noise when she said the inflation data lately has been noise. >> she called it noisy. a lot of folks i talked to today weren't particular lly satisfie with that answer. it is unclear what she means by noisy. the issue being that the recent report -- actually several reports have showed a lot of broad had-based inflation rise. one of the questions, why are prices going up in an environment where wages are not going up. are we having some other f phenomenon going on other than a wage spiral. i think yellen has to explain what the upper bounds of her tolerance or the fed's tolerance

are going to be for inflation here. >> greg, is the message consistent right now that the market has the same skepticism as the fed does underjanet yellen about inflation being sustained here? >> i think that janet yellen is exactly right to call the inflation data noisy. if you look at the last four, five years, core inflation has been below 1%, above 2%, now back down above 2%. i think one of the reents market rallied was that they saw those numbers on tuesday, got worried. they saw the bank of england getting hawkish on inflation and thought will the fed follow suit. is the fed wrong to be somewhat sanguine about the numbers. >>dom, you're our market guy. what happens to the market if we are in a rising inflation here? >> rising inflation environment is one thing but it is not something markets fear per se. inflation is a good thing when it comes in measured doses.

if the fed can manage to keep things this that 2% range, maybe even a little above 2%, markets are content with that some of the best rallies in market history have been done when inflation expectations have been there but not expectations for massive moves higher or massive moves lower. as you talk about what's happening with say certain parts of the market, yes, certain beneficiaries will be there. energy stocks, material stocks, those stocks that are tied to rising prices will tend to do better. but the real concern is going to be whether the financials and technology can lead the way higher. by far they are the two biggest sectors in the s&p. >> seems like a lot of this will depend, if i can use that much bantered about word lately -- on whether wages are rising. in other words, is this the kind of price pressure that squeezes margins or the kind of price pressure that ultimately gets passed along in the form of a more healthy, i guess, environment for the consumer and which they can take price? >> let me lay some economic

principles here. rising prices are essentially deflationary in the sense that people raise prices, they can't stick, it causes demand destruction, and therefore you have the -- >> like oil hikes at the gas pump. >> exactly. the real question becomes -- then i think the way the fed thinks about this, greg will tell me if i'm wrong here, it is not necessarily that wages rise along with inflation. it is that wages really push inflation when they rise more than the inflationary level and productivity. if i hear yellen correctly, she's going to be cool with 3% to 4% rises in wages because those would not be, in her opinion, inflationary. if i take the inflation level and add it to productivity, 3%, maybe 4% might be okay. >> right now it is around %, which is zero in real terms. just no evidence of inflation. the real point here and i think

dom hit the nail on the head. higher inflation is in some sense positive because it means real interest rates are already lower than they already are. that to the fed is the key to getting unemployment down faster, especially some of the long-term unemployed. i think that on the other side is a bigger benefit which is a bigger economy, faster growth. >> greg, you and i both tried the same trick yesterday to get yell ton give us the upper bound of inflation. >> i notice greg stayed sitting for it. >> greg has a little more decorum than i do, but that goes without question. >> i was afraid she was going to knock me down with her answer. >> greg, does she need to talk about it? does she need to tell you, hey, we're okay about 2.5%? remember they had that 2%, plus .5% built in? >> this question for the fed is

radioactive. . she were to explicitly say we're okay with inflation of 2.5%, 3%, that would just be a bombshell for the hawkish members of the committee. she has to be very careful here not to appear to endorse target inflation. she was careful in responding to your question to say we will not tolerate inflation permanently above target. >> i didn't ask had her about permanent. >> exactly. >> i asked about temporary. is this one big wink and nod of fed policy here? >> she took on a couple of old hands at this fed reporting game, steve, and she basically like complete lly shut us down. >> because we only get one follow-up. >> we got to go, but is this why gold is up $50 today? >> gold is up because the dollar is down. relative to where gold has been, there's just no fear factor there about inflation. >> i think there is a crowd of guys that are like, okay, here it comes, this is what we've been waiting for and they're going to pile into that gold trade. >> we'll see what happens. thanks, guys. appreciate your thoughts. heading toward the close

with 35 minutes left in the trading session. here the dow has turned positive now, up two bhwhopping points here. equity pioneer jay jordan will tell us why he says the market is overvalued and where he is investing his money. don't look now, but blackberry shares skyrocketing the day after reporting a much smaller than expected quarterly loss. so is blackberry back from the screen heap, he asked hopefully? that's next. ♪ ♪ 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, they want to know and understand why it's happening. anybody can just put data up, but we want to get a reaction, make it far more interactive. we rely on the cloud to provide that immersive digital capability.

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welcome back. blackberry shares trading higher today after the company reported a smaller than expected loss, also inked a new deal with amazon. this partnership will allow blackberry users to access android applications from amazon's app store on new devices beginning this fall. >> for more on what this move means for the company, joined by tom hazelton and ari zolden. with this rally now in blackberry shares, do you expect that most of the good news for the near term is priced in for are this company or that this is the beginning perhaps of a blackberry rising to yet new highs? >> i think it is priced in. i don't think we'll see it go higher because we see the service revenue up, hardware revenue bay doway down from 71%r

ago to under 39% i believe this quarter. it is a more crowded market for services. they want to get in the internet, messaging. i think the internet think it is going to be dominated by people like google. microsoft is an expert with clout and enterprise. they'll deliver a solution that will beat blackberry to the punch. all of blackberry's strengths are sort of being undercut by everybody in the market. >> tim, i don't agree. i think they're still in the space. granted, they'll never be number one, two, three or four, but i still think that their is a space for blackberry in the handset market. there is no question. the iconic keyboard. >> oh, no way. s samsung could put their logo on a banana and still sell more. >> 85% are business users. there's something there.

i don't think you can completely write them off. >> i'm one of those blackberry users that's got to have a physical keyboard and i love mine blackberry. >> i'm also. >> but todd, do you think expectations have to be lowered and accept being a neiche playe? >> niche player around focus on services. get out of of hardware. aen dried is cruandroid is crusg it. >> the form factor, tim, on the blackberry is still phenomenal. people really, really appreciate it. >> no, the numbers don't show that! nobody's buying blackberry. look in markets where the moto g was introduced in latin american, it is an android device. we have to worry about android getting into the other places where blackberry is doing well. i don't see it coming back just because it has a keyboard. it is a software problem. >> i went to the store that i bought my blackberry from last

year. i had a little problem with my blackberry, went back there. the possibility existed that i was going to have to buy a new one. the guy said i got no blackberries to sell you, they took all the inventory back because the demand is not there. that was a little troubling to hear. >> t-mobile had an issue as well. >> jon fortt asked john chen about having blackberry adopt android to survive. >> tell me again, two years out from now what are the odds that you are making android phones, not just blackberry phones, john. >> can't comment on that, jon. you know that. we're open to any possibilities that help to move our business forward obviously. i think when you and i chatted about a month ago, i didn't really give you any indication of that, but i told you the blackberry 10 will do well. i have confidence we can break even or actually even make money

off the devices. >> todd, would that change your mind if they went toward platform at least where can you get access to a lot more apps, get the consumer more involved? >> exactly. with amazon you get 240,000 apps but android there is more than 1 million apps available. maybe bring user back to blackberry because of the keyboard that you guys love, too. the problem it has has been the apps. then you also worry about the enterprise security. if they move to blackberry -- >> just to push back, i don't think blackberry's going away. i don't think they're going to be increasing their subscriber base either but there is still a space for the government. they've got a lot of government employees on there. they have a lot of small to medium size business. hold on. and it is okay to be a niche player. you don't need to be the dominant player in this space and we've seen that before. >> we got to go at this point, guys. but thank you both. great water cooler talk. the camera's fantastic, too, on the blackberry. just saying. >> you use it quite well, bill.

>> i do. 30 minutes to the close. dow has turned slightly positive. same for the osama bin lad . >> meanwhile harry dent has dire predictions for this market but doesn't he always? what is different this snim he's here to lay out why is he worried. as if gasoline prices haven't been high enough lately, a bipartisan senate bill proposes hiking the federal gas tax to pay for transportation projects. one of those senators behind the bill is here later on the "closing bell."

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>> we were told earlier with great fanfare that there was going to be a huge dynamite blast on this peak in northern chile. they were going to blow the top off this mountain. the world's biggest optical telescope. you just saw that giant blast right there. so much for that. >> in fairness, it probably was a large blast. probably just overwhelmed by the size of the mountain. everyone watching should know this is really an economic indicator itself. this blast, this project by the european southern observatory, i think it was, was put off in 2012 because of the recession, there was no funding at the time because of the european financial crisis. >> they did crowd funding to get dynamite. apparently they still didn't get enough dynamite. that was it. >> sharper or more advanced than the hubble telescope apparently. >> we'll see how long it takes them to build a telescope now.

stocks have been mixed today. new highs though for the s&p and some other indicators as well. >> i would just say i was expecting more out of that blast, too. but the market is probably doing the same thing. coach on the mover side of things is losing ground after saying it expects revenues to decline in the low double digits for the fiscal year 2015. it's also going to close 70 underperforming stores. you see coach down near session lows down near 9%. other luxury goods retailers taking a hit as well. michael kors, ralph lauren, kate spade, tiffany, all lower, some off their session lows. kroger, the supermarket operator, reported better than expected first quarter profits. you see those shares up 5% on the day. then there's ge advancing after presenting an improved offer that would create three -- three -- energy joint jen tur.

the ceo of ge saying that the price of the deal will be adjusted to reflect the joint venture status and not the outright deal. we'll end with cellgene. a two-for one stock split has been approved. those shares will go from you will $165, closing to $80, $85 a share on that news. i hope are you all sitting down for this one. our next guest is calling for dow 10,000 by early next year. right now of course take a look. we're trading just about 100 points away from dow 17,000. >> we're about 38 points away from an all-time high on the dow. harry dent is the man, here to make his case. also with us to take the other side of the trade, kenny po polcari. >> we've been saying for years the demographic trends, baby boom spending, peaked in 2007. ever since the fed and central banks have been fighting with more and more stimulus.

all they've done, they haven't created inflation as the gold markets predicted. they created a greater bubble in the market. don't think we're quite there yet. we're saying dow 17,000 major target. you like at this mega phone pattern we have -- >> harry, i don't think there's anything you haven't been saying. >> yeah. >> right? >> but i haven't given a sell signal on the market yet either. >> didn't you say early last year that we'd already be at dow 6,000 in this quarter. >> no. no, we did not. late 2016 is what we are predicting now. >> just feels like the gold post -- >> do you guys have the chart? >> we saw the chart. if you don't see the chart, you don't see what i'm saying. every bubble has gone lower. in the biggest crash in '73-'74. this is not the only pattern that can happen but it is something people should be looking at. people see no risk in the market

with the highest debt levels and worsening demographic trends around the world. i'm not saying this is peaking yet. it is going up 1% a month. it will go up until something goes wrong. >> i'm just saying predictions have been all over the place, kenny. >> no, they haven't. we've been very consistent about this. >> listen, i look like a ray of sunshine compared to this. right? though i might be a little frustrated where we are, thinking the mark is a little overdone. i about i by no means suggest we'll lose 60% of our value in two years. it seems like a very, very big prediction. >> what about 2008 and '09? did anybody predict that? we did. >> you did? >> predicted in 1989. look back on my book. >> nobody saw it coming. >> we want to talk about the future, not the past at this point. what is going on right now, harry, that's going to cause dow 6,000 by the end of 2016? which is what you are calling for here. >> china has a bigger bubble

than we ever had or even the japanese in real estate. it is starting to show cracks. they're going to try to prevent it from bursting. when that bursts there is nothing the fed can do. our real estate recovery is weakening because it is mostly speculation, not real families buying for real reasons. and germany has a steeper demographic downturn than i was predicting for japan in the 1990s when nobody saw them collapse. those are three big things that could happen. they're not going to happen >> tom:. any of those things breaks and people are going to lose faith in the fed. people think the fed will not let this market go down. at some point they're going to be disappointed when bubbles burst, they burst dramatically, they don't correct. >> janet yellen did say yesterday the complacency -- she sees the low volatility in this market as a bit of plcomplacenc. she hopes it doesn't lead to le leverage speciulation.

>> it has bj more complacent. people were feeling a little stability, feeling a little more comfortable. are we going to come back to where the economics say we should be? yes, but certainly not at dow 6,000. >> you say "i hope people won't leverage too much"? the fed has created this leverage and this bubble. it is baloney to say they hope people don't speculate. >> that's a very different thing saying as a serious forecast that the dow is going to go to -- >> we've already seen two bursts of am thlmost this magnitude in last two years. >> we can understand potentially dynamics here. that doesn't help anybody if for the last five years they've been listening to people saying they shouldn't be in this market. >> bubbles are hard to call. jesse livermore called the 1929 bubble. he was six months early. he was dead-right. he almost went bankrupt but ended up making a billion.

it is not easy to call bubbles because they go up and up until they just burst. like which grain of sand will cause the avalanche. >> listen, i think when you get predictions like that that are so far out of line with what the average person thinks i think they dismiss it right away. they just can't see that the information that you're seeing. >> at least consider the possibilities. >> i'll consider the possibility. >> good seeing you. thank you. heading toward the close, 15 minutes left in the trading session now with the dow starting to move higher, up 11 points. while the s&p is what we keep an eye on though, any positive post there is another new all-time high. incredibly after the drop in volatility yesterday, the vix is down again today. people are talking about whether it could go below 10. most people in this market are betting in the opposite direction. the ipo market has also been pretty hot this year. it is red-hot here this week and it is heating up at the nasdaq.

seema mody will gives you that story next. and then next, yo. you may want to check out the new app that's got everybody talking today, even though it only lets you send one word -- yo -- to your friends. it has already raised $1 million in investments. that's how we heard these days with the investments. is this the next big thing or proof of a bubble in social media? tweet us what you think here. is this genius or the dumbest idea on the planet? we'll get to your best responses coming up later on "closing bell." (trader vo) i search. i research. i dig. and dig some more. because, for me, the challenge of the search... is almost as exciting as the thrill of the find.

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welcome back. so stocks taking a bit after pause today but the initial public offering space has been red-hot at the nasdaq. >> seema mody rounds up some of the big names going public. >> we had four ipos yesterday, three more today here at the nasdaq. market getting a lot of attention. the $1.3 billion ipo making it the fifth largest ipo this year around the second-biggest on the nasdaq in 2014. ardelyx, and zafgen also going public today. participants that i spoke to say

the broader recovery in the equity market coupled with an outperformance in recent ipos has been encouraging for investors, specifically in tech. many of the recent tech ipos are trading well above their ipo price. clee that mobile withcheetah mo. go pro, the wearable camera maker is set to price on wednesday here at the nasdaq. that will be one to watch. >> seema, plenty to keep you busy. thanks for the recap at this hour. with ten minutes until the close, the dow has managed to turn positive. s&p if it closes here will be at a new high. the nasdaq is still perhaps under the deluge of offerings, down about five. good time to mention why i'm here at headquarters. >> coming up tonight, watch bill on pbs. >> netflix is signing comedian chelsea handler to host a late night style talk show.

will it work in the increasingly popular world of on-demand viewing? that's the question that we'll try to answer and ponder at the very least coming up on "closing bell."

welcome back as we head

toward the close, about seven minutes left. the dow is five points higher, nasdaq fractionally higher. on a day when we get this fractional gain and gold is skyrocketing, bruno, does that trouble you? does it encourage you? what do you think of that? >> well, we're seeing a lot of geopolitical risk out of the middle east. you are seeing some of the speak about the fed and inflation. that's a natural reaction for gold and that's why you have gold in your portfolio of to protect new these type of environments. looking at the market more broadly, fairly priced. we can see some volatility so you really want to be selective in the market now. >> are you buying here? buying defensively? are you buying for growth? what are you buying here? >> we've been buying defensively and recommending a lot of our clients to move defensively over the last few months. a lot of high-dividend stocks. we also really like particularly in this environment the energy infrastructure space, what's

happening in iraq really creates a lot of focus with the energy policy. from that perspective we see a lot of value and a lot of up side on the energy infrastructure build-up. >> does oil have to go much higher for that trade to work? >> not really, flo. when you play the infrastructure space you are not really too much exposed to oil prices and energy prices in general. you are really looking at the toll road business model, the oil and gas flowing through the pipelines but in general just positive to continue to build the energy infrastructure in the u.s. after the bell, are stocks overvalued or not? private equity pioneer jay jordan thinks they are. he'll tell us why and where he's investing these days. that's coming up later on the "closing bell." you're watching cnbc, first in business worldwide. you used to sleep like a champ.

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[ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading.

♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up. [ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. very quickly, the dow finishing up about five, six points. today we're about 35 points away from an all-time high there, 32 points. the s&p is in record territory though. vix continues lower. we're till in the 10 range here but it is up now a fraction as we head toward the close. and oracle reports after the bell tonight in just a few

minutes. it could be 98 cents. bob pisani, that may set the tone for tomorrow but no real follow-through to yesterday's big rally. >> the ukraine happened and it rolled off the markets' back. iraq has happened, which should have been a more eventful impact on the market as well because it will an oil component in it. >> the gold rally did nothing, too. >> there is a persistent underlying bid to the market. part of it is the buybacks that exist every day. when the market is down you get more buybacks. you're crazy if you don't notice that. gold, a lot of the gold bugs kept insisting yellen is signaling she's willing to tolerate higher levels of inflation. i don't know where they get this idea from but that was one of the main reasons i heard for the gold rally. yellen didn't signal that at all. she said a that it was noisy indicates to me that she didn't think inflation was a persistent problem. but the gold bugs seem to be reading that a different way, bill. >> we'll see you later, bill.

going out with fractional gains for the dow and s&p. the nasdaq down five points. stay tuned, speaking of the nasdaq, oracle reports earnings in a moment here. that's coming up. kelly evans has the second hour of the "closing bell." hi, everybody, and welcome to the closing bell. i'm kelly evans and it looks like with the s&p 500 adding maybe just a point or two here at the close, that will be good enough for a new high. here's finishing on the day on wall street, what we heard from fed chair janet yellen today, stocks not necessarily giving up much ground. nasdaq looks like it is losing three our four points aubd slate of heavy offerings. meanwhile the s&p 500 adding about two points, 1,959. could be the new high water mark. the dow adding about 12 here after spending most of the day in the red, 16,919.

as we wait on oracle earnings, nath nath nathan, julia boorstin, kayla tausche. is it significant that we didn't give up more ground today? >> i think it was. in terms of the market riding along here i think yellen told you that you're going to have a lack of volatility that, as discussed. inflation they feel is really just a noisy element of what's been sol data points lately but until they he see wage inflation there is no inflation. markets should have traded higher. dollar should have been weak person all that was more or less in line. emerging markets and riskier assets didn't have the same kind of follow-through. what was also impressive, japan overnight, the fact that even though the yen gained some strength against the dollar for obvious reasons with the fed's move yesterday, japan looks to be a place you should be engage

being the global risk appetite and that's a place i think you can still play. >> we are waiting for oracle's earnings report and as we do so, jim, do you agree with what you heard from tim there? you surprised the market isn't weaker and what do you make of this gold move? >> look, kelly. there's a lot to quibble with on this market. sentiment is at a five-year high on newsletter writers. it is 62% bullish. you wonder how much more bullish they can get. if you look at price times earnings, 15.7 times earnings, if we hit all of our earnings projections this year, that means the market's not cheap but on the other hand, earnings yield compared to treasury yields is still very attractive for the market at 6.1. then you got to look at the market's action itself. we keep clawing higher. the dow, nasdaq, s&p at multi-year highs or all-time highs. small cap stocks are starting to perform a little better again. so the market is telling you it wants to move higher. let's not forget, central banks around the world are buying

stocks now as well as bonds. that's a tremendous bid underlying stocks. i think that's one of the things driving stocks higher here. so we're not outrageously bullish but we still think stocks are moving higher here. >> hold that thought for a second. one that's moving lower after hours appears to be oracle out with its earnings. josh lipton running through the numbers for us. josh? >> kelly, oracle just reporting here. 92 cents on $11.32 billion. the street was looking for 95 cents on $11.5 billion. so a miss there on the bottom and top. just looking through the release, closely watched revenue for new licenses clocks in at $3.8 billion. the street was looking for more like $4.2 billion. software updates, $4.7 billion. that's about in line. hardware systems revenue up 2% to $1.5 billion. the stock though reacting. right now that earnings call is going to start at 5:00 p.m. eastern. i'll be on that call and bring you headlines as we get them. kelly, back to you.

>> for now, want to get some thoughts from jen morgan. 92 cents versus 96 expected. dan, $11.3 billion. the top line growth is clearly not there. >> yeah. it is a pretty big miss. i think the big miss, too, that i was really focusing on is that licensing growth which is the selling of new software looking for $4.26 billion. came. up with $3.8 billion and change. that's a big miss. we had other software companies reporting earlier in the cycle that that had kind of benign growth in terms of hp and ibm and so forth in terms of overall revenue growth in software. is somewhat disappointing that licensing number in terms of just $3.8 billion and change. that's a big miss. >> julie, oracle this year has had a decent move. we've gone from $36, $37 up to $42 before this report, and better numbers from intel.

>> i think there was a lot of expectations a that things would continue to trend upward on real improvement in business and i.t. spending. i wonder what these numbers indicate about the health of corporate spending on technology and whether that is going to slow down. >> the big question on the conference call in my opinion -- >> if you look at oracle's revenues -- >> was that jim trying to get in there? >> oracle's revenues have been terrible the last three quarters. i don't see why these revenue numbers are diagnostic at all. this company has had a very slow growth rate. they continue to unimpress. you can't compare it to intel and the microns of this world because semiconductor and semiconductor equipment companies are doing well. they have avenue got the earnings growth. oracle simply has not had it. >> in other words to julia's po point, an enterprise spend cycle. are more and more companies putting cash to work and if they are, is yori oracle not benefit

or -- >> i don't think they are. if you look at loan growth, it is there. but if you look at i.t. spending, it is not there. if you look at business infrastructure spending, it is everybody expected to materi materialize this year along with breakaway economy. it has not yet materialized. i don't know why everybody thinks it will until you get a stronger sale cycle. we just haven't seen that pick up. businesses aren't in the habit of building it and expecting it to come when for the last four years, they have not come. it is the most anemic recovery on record. >> it continues to disappoint people. >> in this current environment, business i.t. is such a hot sector and there are so many competitors to what oracle does as of just recent years. this company has always found organic growth hard to come by. it's been bumping along on the revenue side for years. when they find themselves in that situation they always buy. this is an m and a machine and rumors this week that they could buy microsystem would give them

a foothold in the restaurant and hospitality space. they find a need, they fill a need by buying something. they're masters at intergrath those companies when they can't do it themselves. i think they need to tell the market what they plan to do next. >> last time oracle hit a high it was selling at 152 times earnings. now it is at 18. could go as much as the 22 times earnings. i think it has do have some legs moving forward. that's the good news you take away, well, it could have been worse. if spending picks up, it is a good time to get in because you won't see it back slide a whole heck of a lot. >> where else you want to spend 18 times earnings on a company that's not growing. >> the real question with the growth is what kind of guidance we're going to get for the rest of the year and how much they're going to be talking about that. >> dan, what do you think the street's expectation is for the rest of the year right now? >> obviously it is going to have to come down a little bit. this was the close of 2014. now we're going to 2015. obviously we'll get some

guidance on the conference call. remember, oracle is going through a transition right now to embracing the cloud. it is going to be interesting to see how they function going forward when we start to see the subscription revenue coming up versus the licensing revenue. that's going to be a big challenge for these more mature software companies. >> the title of their earnings report is oracle becomes the second largest cloud software service company in the world. dan, are investors willing to give then time to make this transition? >> well, you know what's tough is they don't break out their cloud licensing revenue or subscription revenue. it actually clurmd together w l with their licensing revenue so we need a little more color on that. they have 400,000 customers. they logically should be able to make the transition, as you were talking about maybe via an acquisition. but i think the street has to be a little more patient with oracle going forward especially if they make this transition. >> tim seymour, how do you trade this? >> i think there are many

investors in this market that love this news and love the 9% pullback in oracle after hours. this was a consensus overweight stock. seeing major rotation into mega cap tech. despite what the panel is saying this company has grown eps 16% on average over the last five or six years. the new license software part of the business which disappointed today is still growing 65% to 75% quarter over quarter. it is a company that's delivering in different ways but a lot of people wanted to own this stock yesterday and they're going to want to own it tomorrow. let's wait and hear what they say why they missed so badly, but this is exactly the kind of meme the market is buying right the now. >> i don't buy it. >> buy what? >> i do agree big cap tech is one of the favorite areas right now. yes, i think they are being patient with yore are cal. why else would people be buying a stock at 18 times earnings with that very anewmmic growth rate?

revenues aren't there either. subpar growth rate. 2% and 4% revenue growth in the last three quarters. >> the financial performance has been choppy the last four, five quarters. that's been said. that's not a surprise. the stock trades at a discount to the s&p in 2015. that's good enough for this market. again this is a company that's has dividend yields, has buybacks, is delivering earnings and eps growth. to say that they're not, i don't agree with that. >> i'm fine, if you want to buy back stock, fine, every stock will do fine if you buy back stock. and they are a cash machine. but the reality is there's better opportunities for an equity investor out there. >> i think you have to have a pretty strong stomach to buy something that's down 8% before a conference call. >> i think you wait until after the conference call. then you'll get 10% or 12%. >> really seems like the guidance that's provided on the conference call will be the crucial factor in determining how the stock opens tomorrow morning. stand by. breaking news on carl icahn.

the one and only. >> here's what we got. carl icahn sending a letter to mr. howard levine over at family dollar stores. he's trying to work with family dollar on the loss of shareholders value. in this letter carl icahn says, "to mr. howard levine, although we appreciate the cordial nature of our discussion it was apparent we have a strong difference of opinions. family dollar has consistently underperformed its fears. perhaps more importantly we believe that for a number of reasons we discussed last night, it is imperative that family dollar be put up for sale immediately. carl icahn calling for family dollar to be put up for sale. they also believe an overwhelming majority of shareholders would be in favor of a possible sale and as they mentioned to you last night, we would like to work in a friendly and collaborative manner with you and in order to effectuate this we believe that three of our representatives should be added to the company's board of directors immediately. so carl icahn wants family

dollar to be put up for sale immediately. he wants three of his directors to be added to the board and they think that an overwhelming number of shareholders at family dollar would be in favor of such a sale. so again, more details as they become available. but kelly, carl icahn speaking publicly to family dollar, its management and board, about what its intentions are. it thinks that family dollar should be put up for sale immediately. stock is reacting, albeit modestly. on light volume, about 40,000 shares have transacted. >> as family dollar eyes $70, it is important to remember this company was trading in the mid to high $50s. does it make sense for these companies to pursue a tie-up? >> i think it might make sense but i also don't think this is such an original idea. in 2001 there was a push to

merge. now for carl icahn to come in two, two and half, three years later and say, hey, i think these two companies should merge, it seems like, well, okay, you saw a big run-up in the stock, he's basically trying to make another run at it with a saim page out of that same playbook. >> this is a wolf in sheep's clothing. he acts like there is a friendly dialogue going on. i'm not sure what other shareholders are on board. with the stock at these levels -- the value to chase after here and certainly from kind after merger, our perspective, it is hard to know how much is left in this trade. this is something we've certainly been speculating. not surprising to hear it today but the follow-through may be somewhat toothless. >> two things i wouldn't want -- two people i wouldn't want to engage if i was the head of either of those companies. my wife, and it would be carl icahn. those are two people i want to keep happy from the time i wake up to the time i get to sleep. what they both have to challenge

with is if the economy actually improves, those customers are going to migrate right back to where they came from and that's walmart. so the timing is good because if we get any kind of sustained growth in this economy, they are eventually going to start to see that their revenue is going to be moving back upstream. >> we'll leave it there for now. stick around and catch tim seymour with the rest of the "fast money" crew at 5:00 p.m. so much to discuss. plus, they're talking to the ceo of a company looking to take on amazon and google with backing from bc heavyweight mark andreson. more pain at gas pump may be on the way. private equity legend jay jar done sa jordan says if you're in the stock market, be worried, be very worried. you're watching cnbc, first in business worldwide. tdd#: 1-800-345-2550 trading inspires your life.

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welcome back. so the stock market continues to post record highs. some investors are worried about a bubble, but fed chair janet yellen saying yesterday she thinks stocks are trading at reasonable levels. >> we do certainly monitor a number of different metrics that

give us a feeling for where valuations are relative to things like earnings or dividends and look at where these metrics stand in comparison with previous history to get a sense of whether or not we're moving to valuation levels that are outside of historical norms. i still don't see that. i still don't see that for equity prices broadly. >> my next guest disagrees with yellen and says the stock market is overvalued and his main worries involve janet yellen and the fed. joining me in a cnbc exclusive, jay jordan, founder, chairman and ceo. >> i've been afraid of not just financial assets and real major assets being fairly overpriced. financial repression is where

the sovereign interferes and manipulates the price of anything, could be currencies, could be wages, could be whatever. in this case the price of money. two things happen. number one, there's a horrendous misallocation of capital in the market. number two, asset values are seriously mispriced. now when volcker did it in 1981 he did it for good reason. we had double-digit inflation. he drove interest rates to the moon. the 10-year was trading to yield at its peak about 14%. asset price is kreecreated. bernanke did the exact opposite. he drove interest rates down to virtually zero and as a result of all liquidity and all that quantitative easing and printing of money, the asset prices in my opinion are seriously overvalued and we are building another bubble. >> but there are some people who say that lower interest rates here -- again, the fed can control it at the short end,

they can talk as much as they want to try to get it down across the curve. but a lot of people think long term rates will be structurally lower. if that's the case that makes equity risk premiums that much higher and stocks that much cheaper. >> well, just look at the high yield market. it is frightening. >> but that's a reflection of all the funds flowing into the bond market. >> now when you start to take those funds out of the markets -- look what's happening in the emerging markets. they're getting crushed because of this tapering business. currencies are going crazy. interest rates, their trade statistics. they're all blaming it on the fed. i'm just telling you that i believe that -- >> how. much of a correction do you think the stock market is in for? >> i don't really know but i wouldn't be surprised if you hit 20%, 25% at some point. it probably will overreact to the data, but when it starts tumbling, it keeps going. >> do you think that's going to happen in the next six months? in the next 12 months? >> i don't know.

in 2007, our firm pretty much predicted what was going to happen. i was a year or two early but you could see the writing on the wall. >> i'd just like to hear from the panel with some thoughts on this. nathan? >> i have to ask you a question, jay. you're the only guy i know that can come up with an answer. we put trillions and trfls dolla trillions of dollars and for all of this, we don't have inflation. where's waldo. how come no inflation? >> can i explain that? >> please. >> i'll use jobs data as an example of that. okay? we hear all this great jobs data. 200,000 jobs or whatever. it is all nonsense. what's importance is labor participation rate and number two, i think the most significant data point and metric which nobody pays attention to is hours work. if you look at hours work, you'll see that you had 200,000

jobs. maybe they're all working $10 an hour -- i mean ten hours a week. so hours worked is very important. why don't you think we've had wage inflation? because the jobs data is deceptive. >> then when is american business going to start hiring? >> that's a good question. now that gets in to the point of what to do with the -- the fed should do. i'm a big fan of draghi's what he's doing with the ecb, went negative on interest rates. nobody has any experience, nobody at the fedding with of rebalancing a $4 trillion balance sheet. it is very scary what could happen. >> jay, i agree with everything you're saying. and i love to argue with people but i can't argue with anything you're saying. i would say this though. people have to have money to -- a place to invest their money. with interest rates as low as they are, and with the u.s. economy, yes, we have a lot of faults but i don't know that we aren't worse than china or japan or what's going on in europe.

a lot of money is still flowing here. central banks are buying stocks around the world. who's to say that this thing couldn't go significantly higher before this metastasized? >> you may be 100% right. i don't know. i'm just very afraid of what's going on. >> when larry fink this morning says that equity prices still have a long, long way to go in this bull market, and notes that janet yellen says that we are not at full employment, we are not close to our inflation target even though we're watching it closely, and that's the reason why they're still putting money into this market alongside everybody else who is. what do you think they should be doing, if not that? >> well, larry fink's great. he's an outstanding executive, but that's his business, selling stocks. okay? so obviously those that are in his business are going to promote stock purchase, bond purchases, what have you. so i take that with a little bit of a grain of salt. >> they've got to be -- >> they have a lot of bonds, too, foreign exchange -- >> we are completely out of time. >> my goodness.

>> i know, it goes so fast and i'm so sorry about that. but your point has been made and we really appreciate the perspective on a day like this where stocks are again closing at record highs. >> thank you, kelly. thanks, everybody. nice to be here. connecticut residents already have the third highest gas taxes in the country. now one of their senators is proposing the entire nation have higher gas taxes as well. democratic senator chris murphy joins us. he's joining tennessee's bob corker who is a republican calling for a 12-cent increase in the gas tax to repair the poor state of our roads. senator murphy here to explain his plan next. later, netflix is looking more like a network. the online streaming service now adding a talk show featuring chalcy handler. the move marks a new departure for the service and will look into whether this will work.

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is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. welcome back. our nation's roads are a disaster and we are running out of money to fix them. what's the idea coming out of d.c.? raising the gas tax. morgan brennan is here to tell us about the plan and if this would add enough money to fix all those potholes. morgan? >> hi, kelly. as gas prices hit their highest june levels in six years, we have two u.s. senators, one democrat, one republican, proposing a federal gas tax that would increase prices at the pump by 12 cents per gallon over the next two years. this would be the first federal hike on gasoline in over two decades and it is being proposed to help fund the highway trust fund which is expected to become

insolvent by the end of august. what's this mean for consumers? right now the federal government collects 18 cents per gallon. that would increase to 24 cents next year. then 30. then it would keep pace with inflation. we've seen gas tax proposals before and they have not been popular. with mid-term elections coming up and now with gas prices rising because of the crisis in iraq, this proposal could have a tough time really gaining support. kelly, back to you. >> that's for sure, morgan. thank you. for now we are joined exclusively by one of the senators pushing for this gas tax hike, connecticut senator chris murphy. senator, great to have you here. welcome. >> sure. thanks for having me. >> are you serious about raising the grass tax? because my grandfather is outraged. >> listen, we have three options. right now we only collect about had half as much money as we spend on transportation. we have an $18 billion gap. so we can either spend half as much as we do today an our roads and rails which nobody supports. i don't know any member of

congress that supports cutting transportation funding in half. we can continue to borrow money from china and other lenders and put the money and debt on our kids' credit cards or get serious and come up with the money to pay for it. we have historically paid for our roads with a user fee. the gasoline tax. we haven't increased it in 20 years. all senator corker and i are suggesting is that we catch the user fee up with inflation. >> understood. >> what it would have moved to over the last 20 years. >> senator, here's the issue though. as he you well know, this is going to be a regressive tax. in other words, it is going to hit people hardest at the low end of the income spectrum. at the meantime, the choices you laid out for filling this hole, while i understand you've typically used this revenue stream to fix the roads, can you use other revenue streams, do corporate tax reform. stop exempting for example, did whether it is on the personal sphere or in the corporate sphere. there's a lot of different levers that can be pulled to raise what in the federal coffers is not a massive a money without having to raise the gas

tax. >> well, that's true but when you say that we can use corporate tax reform to pay for this, that assumes that you're going to have a net increase to the federal government when you do corporate tax reform. i think the general assumption is that if we do business tax reform -- which i think we should do -- that it is not going to result in an enormous net benefit to the treasury. you are right that it is a regressive tax, but it is a user fee. it actually assesses a fee for using the roads on the people who are actually using it. in that sense it is a tax that makes sense based on the fact that the people who use it pay for it. i get it. there knee perfect wno perfect e taxes to the government but i don't think the solution should be to continue to kick the can down the road and continue to borrow essentially $18 billion a year. >> ultimately if there are enough funds to actually make infrastructure investments in this country, which is somebody that everybody on wall street an

everybody in washington supports, says is important, et cetera. what is needed is actually a much bigger pot of money and a much more serious approach towards doing so. >> well, you're right. the united states spends 3% of its gdp on infrastructure. europe spends 6%. china spends 12% so we're way behind the curve. by indexing it to inflation over time we'll be able to increase the sum of money, but we don't claim this is the entire solution. we are just trying to be realistic. instead of going out inventing a brand-new revenue source, there is one staring us right in the face that's worked for years. last time it was raised was 20 years ago in 1993. the sky did not fall. we enjoyed after that almost 10 years of -- >> but our roads also have not been entirely fixed. last thing i'll say, senator, are you going to lose some of the gas tax revenue stream as people move towards electric vehicles. people doing so are at the. top end of the income spectrum. >> that's right.

. this ultimately is a temporary solution. the tax gas tax will not be a relevant source of income once we have a wholesale move away from gasoline powered engines. senator corker and i aren't suggesting this is the way we'll fund roads 20 years from now but i don't really want my kids to have to pay for anymore mistakes down here. >> thank you, senator chris murphy. we want the panel to react to what we just heard from the senator. jim, your thoughts. >> who taught this guy economics? look what's happening with consumers right now. food prices are higher. gasoline prices are higher. medical prices are higher. kelly, i liked a lot of your questions because this is an aggressive tax. he will hit those people being hit the hardest. people 18 to 24 years old is the highest unemployment rate we have in the country. they're going to be hit the hardest. when are these people going to learn to cut spending? it is not a matter of new taxes. >> i know brian sullivan is listening somewhere. we do have a problem with roads

in this country. in terms of real politics, guys, what's the alternative? what do you do to fix that? >> especially after this winter which was especially horrific and really hurt the roorads. i don't understand why this was ever a nominal tax in the first place. in 1993, gas was $1 a gallon. why isn't this a percentage in that could have always followed inflation and the consumer would have gotten used to it rather than having a one big let's add on a chunk, then double it the next year, then index it to inflation. just don't understand why this is being put on the table right now. >> you can tell that she's got a car. >> kayla, it makes no sense and i agree with you completely. but if we done do something we'll wind up with an interstate commerce system that's going to function about as well as it did in 1950 when eaisenhower built it. this has to be done. it is not a choice. >> no, you fix the economy. you fix the economy.

>> hey, chill out for a second. when you look at the gas lines when you go on the turnpike, you pay more for cash when you go to a toll booth. why is it that people who don't have an easy pass have to pay 40% more? i think the state governments took a lesson from citibank, it is like an atm, if you make us have a teller, somebody take cash, we'll charge you more. so balance it off and say either you pay cash because you can't afford to have an ez pass, that's okay. people feel a lot better about it if they get a little break at the toll booth. >> this comes on the heels of our conversation with elon musk earlier this week about tesla, about making an affordable tesla, $35,000 electric vehicle. we are seeing the rise of the nissan leap an all these electric cars. as kayla just said, in 1993 gas was a lot less expensive. since 1993, all vehicles have become more fuel efficient. we have the increasing fuel efficiency. we have entered -- >> in other words, we're going to need another way to fund this regardless. >> i know that the government's about to get $10 billion from

either bank of america and/or citigroup. maybe this could fund something good. >> put new charge of public policy. >> let's send it over to dominic chu for a quick "market flash." >> how about people just walk more as a solution? that's probably what nike wants people to do, but that's beside the point. nike has just said they'll add a high-profile executive to their board ranks. this is going to be john donahoe. that john donahoe, the current ceo and president of ebay is going to join nike's board. now remember john donahoe not only the president and ceo of ebay, but he's also a current board member of intel. he's been there since 2009. again, john donahoe, ceo and president of ebay, will add another board membership to his resume, this one being nike. both companies are obviously in the news a lot but again this time a very high-profile board

addition at nike. >> makes you wonder about some payment moves that nike could be making. an internet mystery is causing a stir online. cyber criminals tried hacking into a large unnamed hedge fund but were thwarted by tech defenders at bae systems. that story clicking up on cnbc.com. we'll see if it can crack the hot list next.where in cyberspat alerts you when someone is trying to reach you. it does it with a "yo." is it the sign of a social media bubble about to? tweet us what you think. [ both ] when we arrived at our hotel in new york,

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the fastest speed dial. the fastest office plant. so why wouldn't i choose the fastest wifi? i would. switch to comcast business internet and get the fastest wifi included. comcast business. built for business. welcome back. as we reported earlier, tech giant oracle missing the street's expectations on earnings and revenue. no sooner did word come out, that story started to burn up "the hot list." allen wastler, our digital guru. >> oracle, cnbc.com readers love a good face plant. so oracle gave it to them. the story ever since we put it up it up.

this is a late breaker from associated press. governor scott walker, republican governor of wisconsin, talked about his possible presidential candidate in 2016. well, apparently there's been a secret investigation going on about his campaign funding activities and apparently prosecutors up there think he might have been part of a criminal scheme to coordinate fund-raising with outside everybody is groups. this is according to a bunch of court documents just released. scott walker made a big name fighting unions with the collective bargaining couple years ago so that's big with our readers. finally we revisited the nfl having a tough week with the whole washington redskins controversy. now today we sort of examine what's at stake with the nfl with the case before the supreme court broadcasting rights, could cost them a pretty penny. those are my hot three for you right now. >> that's a great topic as well. i know we expect to hear from the supreme court on that perhaps in the next week or so.

implications up and down the media and as you mentioned, sports and entertainment space. thank you for now, allen. on netflix, "orange is the new black," with handler be the new leno. she's taking her talents to the next generation video service. this is a cutting-edge move or a move to irrelevancy? that's straight ahead. a new app. that alerts you if someone is trying to reach you. called "yo." is this a genius move or a sign of a social media bubble about to? tweet us your thoughts. not much time left. we'll be right back.

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because at scottrade, our passion is to power yours. welcome back. we started with an earnings alert on smith & wesson. what's going on, dom? >> you can see by the chart we're going to show you, shares are down 11% or 12% in trading so far. we have a disappointing outlook from the company. smith & wesson, one of the larger american gun manufacturers, beat earnings estimates for the past quarter, as well as sales estimates. but they gave an outlook for both sales an profits in the current quarter that all fell below wall street estimates. you can see the reaction there, down about 12.5% in the the trade. smith & wesson certainly a trade you'll watch this afternoon and of course into tomorrow morning, kelly. >> now in case you haven't heard, chelsea handler has just inked a deal with netflix. late night talk show host will stream stand-up specials this year around next, then in 2016

she'll launch a new talk show for netflix. will people consume that kind of show via this service? joining us, senior editor at "time" magazine. you are skeptical. >> well, it is something that's never been done before. you kind of have to be skeptical. netflix has had a lot of success doing things that regular tv used to do, dramas, comedy, movies. late night is something that's very old-fashioned tv. it is about being live that night and that's not what netflix has done to this point. >> that's the same point, julia. which is late night has the word -- no, it describes the time of day. netflix hasn't necessarily built that kind of time of day -- >> this would be the first time netflix doesn't issue a whole bunch of shows at once. so this is going to really change their distribution model. sources tell me that they're going to experiment, they'll try offering three bids spread out throughout the course of the

day. the reason why i think it is promising is because of the shift toward people sharing clips of video, like those late night clips, on social. netflix can really capitalize on that. . there in other words, if they make it easier for people to not only watch but then share this is what happened on the chelsea handler show, et cetera, that could help them build viewers for this new thing is there sure. the idea is that if this works it works based on the idea that people don't watch tv like they used to. i think there is something to that. i watch tv for a living and i rarely watch these shows live. i watch the youtube clips. save them on dvr and watch jimmy fallon bits over the weekend. i don't think it is such an outlandish thing that people might not watch it at the same time as everybody else. >> jim, let me ask you about the ch chelsea handler aspect. shares that sold off today, people are thinking is she going to draw a broad-based viewing

audience. >> the stock's moved higher recently. the fact that it sold off today shouldn't surprise anybody. it's made a pretty big move as of late. but i think you nailed it on the head. this is not a broad-based show that's going to capture enough people to move the dial on a stock that's already made a big move, already widely owned and people expect a lot from. had this is not a bold stroke move. it is almost like an ancillary move. i doubt if this gets much traction for them. >> i think the key thing about netflix is that it doesn't need any one of its shows to attract a wide audience. netflix is all about offering a little something for everybody. also, this is not a particularly expensive move for them simply because late night talk shows are really inexpensive to produce. >> they are estimated to have a 55 million skub scriubscribers next five years. i would worry about her quote, i thought they were the cool kids i checked them out and like any future lover i decided i really wanted to have a relationship

with them." with the hr people at netflix, good luck. i have no idea what she has planned for you guys, but good luck. >> is julia right that effectively they can't lose by diversifying, however that versification -- whatever form it takes? >> i think she makes a good point that you have to remember, netflix is not competing with cbs. the point here is not to beat colbert or fallon. netflix works more than hbo. they are a subscription based company. they just want programming that makes people feel like they have to have netflix. even if just a few people get netflix because they want to see chelsea handler or it lends itself to this general idea you need to have netflix to be current, it doesn't need to reach millions of people a day. >> does it fit to the demographic of the 35-year-old female? >> netflix is not selling their

audience to advertisers, they're selling themselves to their audience. >> that is a great point. jim, appreciate your perspective. we'll see if investors come around. american apparel stocks are down $2 today after the company's board of directors fired its controversial ceo. coming up, jane wells has the man who's stepping in to run things now for the clothing retailer. we'll be right back. chocolate is very individual. white chocolate lovers don't like dark chocolate. milk chocolate lovers don't necessarily like dark or white. before we couldn't really allow the consumer to customize their preferred chocolate. we needed the scalable cloud solution allowing them to see all 800 products and select what they are looking for. now there is endless opportunity to indulge.

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close a deal. hire an intern. and still have time to spare. check your speed. see how fast your internet can be. switch now and add voice and tv for $34.90. comcast business. built for business. welcome back. the board of american apparel firing the company's founder and ceo after an internal investigation. jane wells joins us now with that story. hi, jane. >> hey, kelly. the company's newco chairman alan mayer tells me removing him will make it easier for new funding though it could also be considered a defaulting action under a $10 million credit agreement it has with lion capital, something is he working with lion to avoid. the chances of bankruptcy are "so remote i wouldn't even consider it a possibility," he said. he would not uncover the nature of the misconduct, but mayer said it had nothing to do with the company's performance.

company has struggled through years of unprofitability but charney has been the repeated target of sexual harassment lawsuits, though none have gone to trial but he said this a few years ago. >> i counted nine lawsuits? how many lawsuits? that's a lot of lawsuits. >> you know, that's also testimony to my success though. i mean the fact that i'm a target for baseless lawsuits is -- >> are they all baseless? >> yes. all the lawsuits that have been levied against me are all baseless. >> all lies. >> well, yeah. i'm not going to sit here and go through thousands of pages or something. but the allegations that i acted improperly at any time are completely fiction. >> charney remains the largest shareholder. mayer said while yesterday's meeting to fire him was very long, but it was not a melodramatic meeting. "he did not want to do anything to harm the company." he said if ch hadarney, fights

we are prepared. >> just another twist in the saga. thank you, jane. it is your last chance to tell us what you think the app that calls you out with an audio "yo" to your phone. is it the next great social media idea or the definitive size of a bubble. your best tweets when we come back. and i loved every minute of it. but then you grow up and there's no going back. but it's okay, it's just a new kind of adventure. and really, who wants to look backwards when you can look forward? you are gonna need a wingman. and with my cash back, you are money. forget him. my airline miles will take your game worldwide.

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i'm trying to show you how "yo" works. in any case, basically, something flashes up on the screen -- there we go. "yo from crystal." that's all it says. it's the the app everybody is buzzing about, called yo. basically you can add friends and send them these messages. it sounds kind of silly but developers have already raised a million dollars for it. now a venture capitalist mark andreson is seeing some value. here are some of your best thoughts. #yo. #no. when i see crazy things like this, reminds me of 1999 ipo he

stocks again. what to do when have you too much cash. yo will be as big of a deal as the top of that mountain blowing off. a dud. i am going to say this, there is some merit to the idea, whether you are picking up the phone to make a phone call and hang up, or poking somebody or pinging somebody. >> the same way there was merit in a pager back in the day, just to let someone know you were interested in reaching them. funny part about this is when they originally turned this in to the apple app store they rejected it because they thought it wasn't finished. from it is actually a really good idea especially in emerging markets where people communicate by calling and hanging up. this is the next generation of communication. forget about picking up the phone and talking. you want to let someone know you made it somewhere safely. it is easier around faster than having to actually compose a text. >> i am disappointed it didn't come from philadelphia. >> this is a terrible idea. >> jim, even the guy who created it i believe said he thought the same thing until he thought

about it a little bit longer, started to see maybe the merit. then there was a quote -- i think it was in the "new york times" piece -- about a guy who said he used it to kind of ping his wife throughout the day to know that she was thinking of her. >> kelly, if i get enough of these yos on this phone i'm throwing this phone away. you can already instant message people the same thing. >> nothing says "i love you" like "yo" in the middle of the day. >> you can also use the world cup and sign up for it and they'll ping you when somebody scores a goal. >> does it tell you who scored? >> no. just that there was a goal. but you kind of know something's happening. i could see there being potential for this in the stock market. maybe we're all just crazy except for jim. jim, thank you for being here. all of you. julia, while are you in town. "fast money" is coming up in just a few moments. melissa lee, yo. >> yo. i think that's somebody's joke. i think it is somebody on

silicon valley's joke on all of us to generate multi-billion dollar valuations. >> very possible. >> sometimes it takes a lot of time and effort to type a text. someone might know -- >> yo, kelly. okay. we're going to follow the after hours action in oracle. one trader thinks it might soon be time to get into coach. >> over to you guys. "fast money" starts right now. live from the nasdaq marketsite in new york city's times square, i'm melissa lee. tim seymour, jon najarian, karen fireman, and guy adami. don't we'll have you choose one of our stories. logon to cnbc.com for are that. commodities spiked. gold breaking out today up more than 3% on the back of fed chair janet yellen's comments yesterday that rates would stay low for the foreseeable future. violence in iraq driving up oil prices