elvis sweat included. >> i wonder how much the sweat alone would be >> and melissa, thank you very much. >> the closing bell is next. see you on monday. >> and welcome to the closing bell on friday. hello, sarah. >> hello. happy friday. sarah ivan here. at the new york stock exchange where this hour we will find out whether history will be made. the douw threatening to close a an all time high. my math is off.

>> 15,945. also today, confessions. if you pay someone to invest your money, you already know that he or she gets a percentage of what you have in your portfolio. but did you also know that they may also be getting kick backs for putting your money into certain mutual funds. the financial advisor who spilled those secrets. >> those missing e-mails from lois lernor was the focus of the

questioning. who has pleaded the fifth, stalling the investigation and that is where the e-mails are so very important. >> i'm sure he's ready now to go on that particular story. >> this is an options expiration day. a lot of volume on the open this morning. it will probably happen again an hour from now on the close. and right now the dow is up 24 points right at the hold high.

>> a start with davidson playing the role of rick santelli today. here we are continuing to move higher. what do you think is the biggest threat to the market? >> we're generally favorable on the markts. >> the earnings have been great. the corporate data has been very good. corporate america keeps grinding ahead and not ledding these

tensions get to them. inflation is also a concern. if they do not carefully orchestrate the beginning of the taper. . >> next week. >> it will be tough. i know that the inflation concerns were somewhat down played by the federal reserve but i think the market does understand attract buyers across the pond.

>> that's correct. what we're seeing for the s&p capital, did about 3.5% in the first quarter. expectations for the second quarter, which we saw reporting in early july. 7.1% led by telecommunications and materials. a lot will be financials. you mentioned to my colleague that it's really down to complacency. a lot of concern now. reach this plateau record highs, record earnings, record profits. all trees don't grow to the sky. they will have to reach a plateau. we still have a 12 month forecast. >> that jibes with what you're saying. we're not going on a sixth session in a row.

>> i think gdp growth is going to pick up here. and earnings and profits are going to grow into the market, into the level of the market. we can end this year at 2,000. we can end next year between 21 and 2200. >> how do you read this issue? the vix at a seven year low right now? janet yellen said that's on her radar screen and it's a bit of a concern to her. is it to you? >> no. >> does anything concern you? don't look at the vix. i don't think that that's really a good indicator. >> with all duh respect to my great friend.

>> it has not worked for the last few years and i think that's really the case. we have to go back and look at the history of the vix. understand where it came from. it doesn't fit right. >> it's broken. not a good indicator. and greg hit the nail on the head what he said about earnings. earnings are the life blood of the marketplace. as long as that takes place, i will be happy. you ask me what worries me? inflation. if we start to see the velocity of oil, you will see me get a little concerned on this. >> it's not just oil.

i'm curious. >> sarah, it has got to go across the board. let's go through a real quick history lesson. nothing difference about the soy beeps but they went up very quickly. we have to be very aware of it. >> with that risk of inflation, do you have to adjust your portfolio? do you want to be in gold, for instance? >> great question. i believe that the risks are real but i don't think they are imminent. higher inflation and things like metals and commodities futures. but every indication is that equities are still the place to be. we still like value stocks. look at what's happening with stock buy backs. we think u.s. cash companies are the place to be. >> that's what corporations are

doing with their excess cash and you feel like banks for one need to do more to help the economy by lending more right now right? >> right. i think that has been the missing peas. we haven't seen that since before the financial crisis. this could be the real difference between 2% and 3% real gdp growth. >> another worries is revenue. expectation we see a decline in actual revenue growth. we sold over 3% in the first quarter. now it's about 2.5%. the company is not seeing

consumer demand that they need to to generate the bottom line. >> it's hard to tell where oil doesn't have an impact. one thing that is missing that we haven't discussed is the lack of increase in business spending. corporate earnings are up. we haven't seen companies start to spend that money. >> we were just at negative 1. in order for us to get there we have got to be firing on all cylinders.

housing continues to be a drag. now that banks have started to lend that should improve it. >> good to be here. >> what would be different about that? we have got 50 minutes left in the trading session. the dough is up 29. we' we're. >> the 21st of 2014. also we were just talking about gas and oil. get ready for major pain at the pump. our next guest says the current crisis may send gasoline prices up. you won't believe. >> also things are getting bad for coach. the retailer share hitting a

four-year low as the company closes about 70 stores here in north america. if you buy now will you be left holding the bag? ed don't just visit rome.

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. >> welcome back. the first of the 300 american military personnel are expected to be on the ground by tomorrow.

>> we are live with the latest on the crisis. michelle? >> we are also awaiting details about john kerry's trip. it's unclear what kind of message he will deliver to the prime minister, how clear he will be about just whether or not he will step aside for maliki. the prime minister is under intense pressure to resign especially after a top cleric today during friday prayers sent a message for a new effective government. and a big water shed event for this region where i am which has long dreamed of independence. word is they have been able to

unload its first ever tanker of oil. they have long been trying to create their own oil industry in complete defiance that the iraqi government is facing right now to use every opportunity to see if they can build their own industry which could be a first step to independence. back to you. >> what a crazy story. michelle, thank you. our next guest says the situation there will cause oil prices to spike more and gasoline prices could hit an average $4 a gallon in many parts of the u.s. and that could be as early as next week. >> we could feel that. speaks with contacts in iraq every single day. so we're not quite there yet.

it was like $3.80 a gallon. >> the first in perhaps most important is what is occurring at the refinery in iraq. that's the largest refinery in iraq. it services only the domestic market. we're already beginning to see indications of accelerated volatility. so the price of gasoline can only be going up in the united states. >> i can hear the people out there in those parts of the country. >> kent, what about the possibility, saudi arabia is

somebody who will usually boost their production to make up for the loss of oil. it certainly happened during the gulf war of years ago. why wouldn't we expect that to happen now. >> we're now in a situation where the uncertainty fact is taking over. and the factor is now becoming more of a conversation. we're running into and that guarantees that the divergence between futures prices will go up. this is an uncertainty perception issue. as the baghdad bmt weakens. as of this morning it's a certainty that this government

will not survive the convening new parliament. >> i was going to ask what it means that if these insurgents get some of the oil supply in their hands. >> that will increase the uncertainty and the price will spike. the strategy is not to control the export flow. the strategy is to immobilize the current shiite government in baghdad. at that point, prices become exceptionally unstable. that's their ultimate objection. there is only about 10,000 of

those guys out there. they will not even be able to control the territory. that's not their objective. they are destabilizing the government and that right now is successful. >> i got to go. does this crisis affect the keystone pipeline the amown of crude oil that has already removed it from the united states by rail from canada. >> appreciate it. >> coach has not been helping that. certainly one of the worst performers again today.

shares hit a four year low. we're wondering whether you should follow their lead or whether this beaten down name has become attractive. >> and you remember starbucks announcing earlier this week that it will fund freon line college tuition for thousands of its workers? the company got widespread recognition and praise. but there's a catch. starbucks may actually not be paying a dime. our truth squad is on the case.

>> morgan rounds up all sorts of movers. >> weakness in its roofing business. the deal still needed some work and said that it would buy a 20% stake in the company.

the stock down about 15% over the past three days. still a buy at these levels or will things get worse from here? >> there is only one buy recommendation. we have with us eric from green capitol. that's going to take time. it's could happen.

it's going come out in september. it's going to be. for them to be here. >> some more news ahead for coach? >> everything he says, i understand. this is it is really showing that coach has lost significant share to competitors.

not immune to them. >> no sales room. they are not buying back stock for the first time in forever they are not buying back stock. they have got to execute right. this is the most important part of the whole thing here. i think there is here -- >> isn't the growth potential par part of a better story for asia. >> china continues to grow. >> it's a multibillion dollar player. get rid of as many of the outlet's as they can. and really come back to being affordable luxury player. >> how long is it going to take and is there a concern? >> it will take at least a year plus. the question is when do you want

to hop on to this? we're getting close. a lot of the bad news is already out there. this is going to take a year or two. you will be able to see knit in the stores. is the momentum in here. are you getting less coupons in the mail for friends and family events or sales events? when that happens this becomes an interesting story. >> what is not dead money in that category? >> before i get to that, kors has been one we said to buy.

>> there you go. >> 30 minutes left in the trading session. could that be today, sarah? >> lawmakers grilling the irs over how the agency could have possibly lost e-mails at the center of that scandal. >> i don't believe you. this is incredible. >> i have a long career. that is the first time anybody has said i don't believe you.

>> and that scandal is one of the things that is still to come on the closing bell.

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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 dough moving higher. we head towards the close also a new all time high. looks like we will get both of those on this last day of spring. >> here is a question being asked on capital hill. that was the prevailing question. >> now, amin has the latest on what turned out to be a very

heated outing on capitol hill. >> yes. it's a republican led committee. republicans wanting to get to the bottom of the irs's revelation to capitol hill just last week that they had in fact lost thousands of e-mails. she is the figure at the center of this controversy over whether or not the irs did the right thing or not. the irs saying that loi lois lerner's e-mail was recycled. that provoked denunciations including this very tough exchange. >> i have a long career and that is the first time anybody has said that they did not believe me. >> i'm willing to stand on our

reco record. >> you know what, investigators, congress who is investigating. the irs did nothing wrong. followed all the right procedures there. he declined to comment. the republicans denouncing and democrats on the committee coming to his defense. one democrat on the committee invoked benghazi, area 51 and the president's birth certificate suggest iing. >> that was so unusual. >> boy are we going to get it

from larry kudlow. you have to admit, come on, her hard drive crashes and then it's recycled. this does not smell right here. >> i admit that. but let me say this. >> however, what you saw today was pure unadulterated political theater. regarding the irs. and that is this institution to collect the revenues that it needs to collect. we're asking to do a political

dance. >> you're giving us a distraction. you have got guys like paul ryan and dave camp and kevin gray who are furious. these are low key measured guys. i know them all. i have been on this show many, many times. the irs has no credibility. you know what this is? this is real simple. the dog ate my home work. the dog ate the home work of the other seven people involved. the irs has consistently misled this committee. i think that dave camp is right. it is time to have a special prosecutor because unless you take a. >> those of us here at nbc are always told.

>> every backed up hard drive ever. >> by law, the irs is there. that's why paul ryan and the others are so furious. how about getting to the need of some legislation instead of just playing the blame game here. >> this is a pure dangle the key move. i totally agree with larry. go ahead. in fact, i think it would be healthy to have a special prosecutor. which is what we saw today. and let's talk about the irs and how it needs to be amply funded and stop trying to get it to figure out which social welfare

agency is engaged. john and today said he thinks it will be a waste of taxpayer money. >> this is a year divisible by four. >> the irs lied months and months ago when the hearing started. i want to people want to know what the irs are doing right now with whatever e-mails are left because they are talking to the -- the e-mails went to the treasury, they went to the justice department and the white house. the e-mails went to shumer, durbin and rhode island. those democrats were encouraging

lerner and her crowd to target groups and the evidence is suddenly gone? are you kidding me. a liar. i just don't think that advances anybody's cause at all. >> people hate the irs and this makes it worse. i don't think the irs ought to be in this business, but whatever. whatever. they're in the business. >> don't we want them to be fair? >> no credibility on this issue. zero. >> why are these groups tax exempt? does that make any sense to you? and then we ask the irs to figure out what percent of their activity is political?

>> on that point, the loophole point, i agree with you. my vision here to abolish the tax code in its entirety. the trouble is once you make a law, you are supposed to implement the law objectively and non-partisanly. >> that's what this is. >> the whole issue is about targeting specific groups not whether they deserve the tax exempt status or not. >> and now all of the sudden the dog ate my home work. >> and an underfunded irs. >> obviously a messy day on capitol hill but one that larry just relishes. >> bye. >> bye bye. >> all right. 18 minutes left before the closing bell and we are still looking at gains there. there you see the dow jones

industrial average a little less than 15 points away. >> and stocks may be at record highs so why is the economy stuck in second gear? we will discuss a major oped that says we are asset rich but income poor. er, crook and nuisance in the world. but systems policed by hp's cyber security team are constantly monitored for threats. outside and in. that's why hp reports and helps neutralize

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seeing the world in reverse, 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? but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea

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. another trading day that has been a hallmark of the trading we have seen in 2014. no big rally but gains enough to put us in record tore tory again. >> balboa has had tremendous

runs. >> there seems to be a couple of different catalysts. we did see a sell off in april and may as well. some investors seeing that as a good buying opportunity. many companies make a majority of their sales here in the u.s. in fact some of the biggest winners over the past one month include merk and open table

being acquired by price line. the question i ask is whether the russell 20. >> on the technical side, the russel has a bit more room on the upside before finding next resistance at 1200. >> let's head to the close. the dough up 27 points. we're going to kind of close here maybe. we're just about there right now. >> yep. watching it cleesly. we're going hear from somebody with firsthand knowledge that says some pros will put you in

funds that may not be in your own best interest.

>> welcome back. about eight and a half minutes as we head towards the close of this friday, the last day of

spring. both on the floor of the new york stock exchange. we mentioned one of the high flying ipos today. should i say it or do you want to say that kite was flying high today? >> you can say it. this is one of the stand out ipos. investors really like the story for some of the health care type names.

going slowly. everybody is moving ahead. you have monetary stimulus continuing. and lastly you have still high cash the individuals have really

not come to the party. the big buyers have been corporations and also a secret buyer thaz been coverage wealth funds and even central banks. a trillion dollars has gone into equities from these super nat n national. >> and they have been right. >> somebody was just saying in my ear that nobody scores four let's take a break. we will come back and get to the closing break and see how the market trades. we will probably get some volatility and high volume. [ male announcer ] this is the age of knowing what you're made of. why let erectile dysfunction get in your way? talk to your doctor about viagra. ask if your heart is healthy enough for sex. do not take viagra if you take nitrates for chest pain. it may cause an unsafe drop in blood pressure.

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♪ or not? what if they embrace new technology instead? ♪ imagine a company's future with the future of trading. company profile. a research tool on thinkorswim. from td ameritrade. we're going close it looks like at an all time high. the s&p same stormry. we have been setting those throughout the week here as we go out. the yield on the ten year note

has been volatile this week with all that is going on with the federal reserve meets. that's a slight gain for the week for the ten year and we have made note of the fact that the vix, the volatile tir indit has gone lower. that usually can signal a top of the market. the vix is broken right now. >> you could say that the vik is broken but the reality is that like you said this is an environment for low volatility for stocks. you can never be too complacent about the markets no matter how good you think things are.

she says the trend is still higher for right now. there are some that still think this is a market that can continue to go higher. >> selectively, i think japan has had a bit of a correction. it was up 57% in jen terms. and you have this allocation shift coming by the government pension fund. >> all right. thank you both. have a good weekend. volatility will rain here.

a lot of volume. but it looks like we will have all time highs for the dough and the s&p and a few others as well stay tuned. we will be back with the second hour of the closing bell. >> here's how we're finning the the day. a new all time high close. sarah said we would be above 17,000. >> i lost.

i was waiting to break out the hats. >> save it for next week. nasdaq up 8. that's a new all time high for the s&p, up 3.5 points at 1963. >> and a session of gains here on wall street. dan, what do you make of today's gains? >> it's friday, the summer. >> that's right. come on. >> taking a step back from one day's action. >> today is a continuation of that trend. and again you can't read very much into today. you of all people, the bias does

arrange to the up side. imfact on oil prices, the level has been going higher. >> i think we need to, you know, the slow news days we need to separate the important from the less important. we have been swinging sideways for a long time now and i think it's time to go deeper. we kind of know how that's going to play out. the risk to oil is limited. >> iraq is the number two supplier in opec. >> the specific risk is limited.

i think an interesting position was the great interview here that are explaining why it's very hard to achieve cap tail raises, some very important endefors that have the potential to boost the economy. and more importantly, it's very hard to operationalize and commercialize significant energy projects that are needed in order to boost the economy. so what i say is let's focus on the core structural problems that need to be solved. the core structural problem being the skill sets in the economy have atrophied by the recession and have been obviated by progress. we need to now shift the skills in the economy towards productive endeavours.

>> big business profesor is all i can say. >> with us is brian kelly. what strikes me is this market has climbed a wall of worry. it's not just a rock that what bill brought up. that's not happening. >> look at the home building sector. rise i rising that goldilocks scenario. >> that's what the market likes. it's not sustainable. >> it's incremental gains here. .

>> i used my wife is much happier because i don't have the ipad right next to the bed any more. >> a year ago the vix is double where it is today. >> let me ask you a question. if i went on to the web and searched for spike in interest rates, how far back do you think i could see that fear? >> 1994. >> she had a very tight road to walk this week. it's all about the gradual move in rates. i think the economy can adjust

to that. >> janet gets an a for not surprising us. she is doing exactly what we think she is going to do. >> are you seeing, come on? are you seeing signs of irrational exuberance. >> it's not just stocks but capital that needs a place to go. >> that's a great example of an asset class that is not

representative of whether the economy is rebounding or not. >> no it's not. >> where will widespread gloet come from in the economy. >> that could be one of the problems. the banks have been hurt by regulations. you look at the number of start ups in the u.s. it has rebounded off the lows and it's coming back a little bit. but these kind of things is that you do need efforts in different

areas to get the economy moving a little bit more quickly. are we going to see that? is there any hope of seeing that? why do we have recessions. you're afraid of a shock happening and you're sitting there with all of these contingencies to eject if you have to. the problem is we don't have certainty for any significant length of time so we can't make the investments that we want to make. mobilizing the record levels of

wealth in order to answer a lot of the problems itself. the one place where the guilty should act and that's a no-brainer is in infrastructure. >> former federal reserve. and it's good that we have you here. the asset rich income poor. faulk about the consequences. of easing, helping the wealthy. americans that are actually in the stock market and not doing anything to boost the broader economy. it was a call to start think abnormalizing. >> how does that help you? >> the diagnosis of the problem was spot on. the top ten percent own 80% of

the stock. so this has been a very wealth skewed 1% skewed recovery. we sort of knew that. the important line was that balance sheet wealth is only sustainable if it is earned. when you think about this market it is starting to remind me of a trust fund kid. >> it's not really sustainable. and you can't take the kid off the trust fund because they don't know how to earn their own way but you also want them to survive. they can't pull back.

>> i want to make an op ed point. it's for really really smart people. there is a really important point to make. believe it or not. it is way better. >> the question is what? if we raise borrowing costs, then we will see spirit and borrowing happen? what is the solution? everything, most of the things in the article we know. the question is why has the evolution been the way it was? >> you're going to do financial

engineering rather than build a new plant. that's the false choice. >> it's far more surn. >> they still don't know about demand around the globe. that will keep them sitting on all the cash that they have. >> can i say one sentence. >> we have got to run along here for just a second. before we let brian kelly go, is oil december tinned to go much, much higher? >> i'm long both brent oil and wti. >> how much higher? >> it depends on how bad it gets. >> you eyre going to ride it as long as it goes? >> that's right. >> we're already near nine month highs. >> there is a difference between a short term.

you don't have to worry about why the spirit and manufacturing backbone in this country has not been mobilized towards growth. >> thank you. be sure to stick around and catch brian kelly and the rest of the fast money crew coming up.

>> are you putting your money to work as best as you can. >> inside practices that make your advisor wealthier but maybe not in the best interest of your bottom line. >> yesterday we learned that the american apparel ceo is being dismissed. today we found out why and we have got some video. here it is why. the full story but not the full video, people. >> thank goodness. we will be right back. the world has gotten you far,f but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience.

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>> one financial advisor exposing hidden truths about what he says is going on behind the scenes at some big wall street firms. >> our next guest says that some financial advisors may also be getting extra incentives putting money in those funds even if

they are not in your best interest. good to see you. welcome. how much does that go on. >> when i first got into this business, i nodesed that the vast majority are registered as broker dealer. that is to legally collect commission on the sale of products. it goes on largely. the majority do this and they are tewly registered as broker dealers. >> they will park your money with specific companies and in return for doing that they get a piece of of that money back again? is that the idea? >> absolutely. this is legal.

it dawned on me what a lot of americans don't know is that the advisor gets the majority of those fees kicked back as a commission. >> very quickly here. go ahead. >> if i were affiliated with a broker dealer i could call a major much ral fund company now. the broker dealer i'm affiliated with would get five points of that fee and i could collect 50 to 90% of that front end load fee that would come to me. >> here is what i don't get. i'm sorry to interrupt. they have a responsibility to their clients. are you suggesting they are breaking the law or talking about brokers?

there is no other reason to be dually affiliated. they are collecting commissions. >> let me start with an anecdote which is true. i see one of my friends who is a fashion model who watches wolf of wall street and decides that stocks are hot. and bonds are better. and she decides she is going to spend some of her money on the stock market. she goes and thinks of selling some shares because she has seen botox go bad but at the other end you have bill ackman who is buying shares. now she realizes she's at a disadvantage because she doesn't understand how it works.

she's going to find some guy in a cheap suit. here's the problem. reads this article and hears about kick backs and soft dollars. she will learn that your incentive structure and fee which is a 20% fee is nothing other than an option pay off. you know what eelse? hedge funds. private equity funds. >> no, no. what i'm asking, what i'm asking james is he understands that the incentives induce behavior. if the incentive is to push

mutual fund thas ear going to push them. >> the question is here and now. what you're offering her as an alternative is an incentive structure that encourages you to take on a large degree of risk. because you have an option pay off. but you don't lose money if she loses money. a risky portfolio that she may not want. sit going to induce a lot of risk taking. >> i am a performance fee structure, no doubt. i only get paid if i make money for kleins. if i don't make money, i don't get paid. that incentivizes me. >> how is that different?

it's exactly the same thing. you know what that means? your pay off looks just like a call option. so your fee structure encourages you to take on more risk for your clients. if they want that, that's great. but if they don't, that's hidden. >> can we get a picture of her? >> can i ask james a question? >> i would like to add one other aspect. >> you can't come and say here are incentive structures that are encouraging many odo things that are not trance parent when yours encourages you to take on a large degree of risk. and so you have to make that transparent. >> that's a longer question than i have heard. >> give the final word. >> well, one key point of my

agreement is that i also must be invested in the same portfolio that they are invested. in. they can audit that portfolio. i would give them a snapshot at any time. that's very, very different from bha is offered at other financial planners. i would also. >> i'm sorry. >> that was my question. i'm assuming that you would have a wide variety of clients. you want something that is basically taylored to you. why should i invest in you if you have a different risk profile? are you just looking for one type of investor? >> we have got to go at this point. when the bell rings it's time to go. that's all i have to say. thank you for joining us. everybody read the oped. i don't know what just happened here. >> obviously.

>> he has got trouble on the home front. doubting his ability to be effective in office as he looses political capital what will that mean for reforms and wall street care like immigration. meet the press moderator will be here to discuss. >> and up next, we knew american apparel ceo was eeoc seccentric. apparently we found out why. allegedly this is in front of two female employees. jane wells has the story when we come back.

>> the. the video which was just now found through gawker was uploaded through a website.

. the video was also posted on the daily mail. >> oh yeah. i'm dancing right now. >> the video is titled doug dances for his employees and past videos and encounters with reporters are to be believed -- not me. he always treated me like a perfect gentleman. one interviewer claimed he engaged in sex acts with another person while she interviewed him. but this is the first time we have seen a video of him completely naked in what appears to be a room with a bed and two women. where is the room? don't know for sure. there is a bin in the corner

saying leggings. >> we have reached out or attempted to reach out to both sides. the company isn't saying for sure, guys. yet. >> yep. >> the panel thoughts here. >> what robert? >> i'm pretty sure that david is rolling right now. >> this is what i was thinking. once in a while we have these ceos that do or say outrageous things on a conference call. if all of this is true and if indeed he was dancing naked with a couple of employees, nobody is ever going to top that and if they are, they are idiots. i cannot believe that happened. >> i wonder what the company is going to come out and say.

>> a two-year tenure is heating up. >> next as we are ongoing with this. >> and who will win the title of this year's top state for business competition? scott has been compiling the data. he is going to join us with a preview of this study. don't lik. milk chocolate lovers don't necessarily like dark or white. before we couldn't really allow

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staying with mom and dad. here is a more serious statistic from that story. 60% of them are still getting financial support from mom and dad. now the article goes into reason. that does not mean that they are losers. could be signs of a new trend or financial planning by staying with your parents. i find it depressing but people are reading it up and down. occupancy rates are at the highest level that they are been in six years. so the rental market is picking up.

and third on the hot list. >> study from yale. they only tested it on one guy with alopecia. so this story, ever since we put it up it has been lighting up the board. it is big on twid tter. it's getting passed around. >> you guys see what happens on monday. >> you guys talk among yourselves. >> we don't have any bald men on this panel. but i don't know if one sample size makes a trend. >> if you could put anti-cholesterol in there, that would be the perfect trifecta of

drugs. >> the number of kids still living with their folks, this is still a relic from the financial debacle. >> the larger story is that the economy is just not strong enough. and rather than focusing on individual things whether it's student loans or boldness, really what is the best way to get the economy going. and in that regard the professor is exactly right. as smart as those two guys are, there is this blame for the federal reserve. in my eyes, something that mark spoke about three years ago is that when you fall to zero, the fed can do something. the way we live and the way we consume and the way the economy is. >> lousy job market as well. >> what i would be curious to

know is i would like to see an income break out of the kids still living at home and their parents' income as well. it might be more comfortable for them to live at home so they can afford something that is worthwhile. look what is happening to college dorms. >> the wealth of the baby boomers is such that you have record amounts of wealth. they have the means to support their kids. >> and they want to. >> the kids have grown up with a lifestyle to which they're accustomed and they don't want to give it up. >> what kind of incentives does this produce? if you know you can come home to a warm comfortable house, are you willing to take the low minimum wage job. getting that demographic to go up and work and climb from the bottom to reach the levels they are seeing their parents at. >> not your mba students. call it a lack of political

capital.

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>> with more than two years left in a bowl, how could it affect issues like immigration and corporate tax reform. meet david gregory who joins us more now. there is going be so much for you this weekend. >> there is. iraq is a big one. but to this point it's an amazing statistic. 54% find they are no longer confident in the president's ability to get the job done. as he has got so much to deal with overseas. i have talked to senator rand paul who does not see immigration reform coming out of congress this year and certainly not with any path way to citizenship. that is an economic decision and a real legacy issue for the

president who wanted it badly. >> this is awfully early, isn't it? >> well, that part has been going on it a long time. this is a second term. the process of legislation has really stalled out so the president is thinking about executive action on issues like immigration and climate, etc., instead of really building a coalition with congress. >> in the meantime, it's not exactly like everything is peachy there. they have new leadership now. they have to co-eles around some common ideas and issues as they march to 2016. >> it's a very interesting

point. the republican party is less popular than the president or the democratic party. the president's approval rating is slightly lower. but the republican party has some real problems and the republicans i talked to said part of the problem is americans are so frustrated with washington, period. not just for republicans versus democrat. but for those who are the money and interest. >> that's a really interesting political dynamic.

>> it's interesting. i think from the president's point of view this is a terrorism problem. that's a fact. the other part of it is that there is a huge civil war that is raging. and so the leader of iraq, maliki, is somebody who doesn't have any credibility left in the region there are those inside of iraq, maybe they are kurds or sunnis who don't want to help maliki. they will do anything they can to degrade this al qaeda

offshoot. putting a lot of political pressure to force maliki out. >> and i don't hear any consensus about what the position should be on this. >> look, if you look at american politic politics that's how the president feels about it and certainly how the american public feels about it. there are some hawks who are republicans who think the president has made the united states less safe. dealing with the civil war that is in iraq. if iraq splits up. we are back to preww i, it's a

very dangerous scenario. >> good to see you. >> okay. you can see meet the press at senator rand paul about issues ranging from iraq to shocking primary de. >> joining us next with a preview of what we can expect from the list. >> has it been eight years already? how about that? be sure to tune into closing bell. we are back in two minutes. stay tuned. [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪

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it is that time again. cnbc preparing to unveil our eighth annual rankings of america's top states for business. the commercials, bill, which i'm sure you've seen, are pretty funny. >> i have. scott cohen joins us now with a preview. go ahead and tell us. >> i am packing my bags just off camera getting ready to head to

america's top states for business. i would say whether it was new jersey, new york, connecticut, pennsylvania. we'll reveal it right here on this program next week. you'll want to stay tuned. you want to watch online. maybe you've seen the promos with me and the state mascots. we have fun with this, but the competition is serious. this year's study the most comprehensive yet. till have our ten categories of competitiveness, but we've added five new metrics for 56. our economy category, for example, is a little more forward looking now. we're looking at job growth along with the other indicators. we've broadened our definition of access to capital. also, technology and innovation. we've heard from a number of states, particularly in the midwest, pointing out that innovation can take many forms. some of the most cutting edge work is in agriculture. competition there is intense. >> if you look at advanced agriculture, they're using genetically modified seeds. they're using tractors that have, you know, gps accuracy to two inches. >> so we'll be looking at actually the funding of agriculture research along with

health and science research. that was robert atkins of the information technology and innovation foundation. they recently put out their own state economy index that looks at agriculture among other things. it puts massachusetts at the top. we'll see if that matches up with our study. you can read more about our methodology, all about state competitiveness. we have a lot at our special site. topsta topstate.cnbc.com. and we'll see you next week from somewhere. >> not giving us any hints. >> no, we'll have lots of hints. >> all during the week. and lots of governors will be watching very carefully. >> good tease. >> thanks, scott. see you then. be sure to tune in monday, by the way, on cnbc as scott begins to give us those clues about which state will take the top spot this year. all right. imagine owning a $24 million yacht. now imagine it going up in flames. >> not pretty. it's exactly what happened to one yacht owner in california. robert frank will have the details of that story and just

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you are looking at the $24 million yacht known as polar bear being destroyed, literally, by a fire when it was dry docked. >> it took the owner five years to build it. it had been in the water for three years. now he's left with those charred remains you see there. hopefully a sound boaters insurance policy. robert frank, how much does he stand to recoup here, do you think? >> yeah, i know it's easy for some people to make fun of this, but it truly is tragic for this guy. he spent five years building his dream boat. insurance and yacht experts tell me he did probably have insurance. he'll probably get all the money back. the problem is that these custom boats, especially this size, take three to five years to build. so it's going to be a long time before he gets his boat back. this is a guy who just really loved this boat. he took it around the world. it was getting repaired and being welded on, and they believe some of the welding job caused a spark that ignited the boat and that's what burned it down. >> so you know this person?

>> i don't know him. but i talked to some yacht people who know the boat. >> know his story. >> yeah. >> so this is what he'd been working up to. >> and he said it was the most beautiful boat ever built. >> what want a the insurance question? is he going to get it back? >> he will get it back. if it was insured, which i'm told it was, depending on how it was started, as long as he's note involved in what happened, he'll get it all back. again, these yachts just take so long to build. and that's the issue for these guys. >> all right. well, i want to move on and talk about what's coming up next week, whether these record runs that we've been seeing in the stock market can continue, dan greenhouse. can they? >> something sarah and i have been fighting about for some time now is increasingly coming back into focus. that's corporate earnings. people tend to think alcoa is the start of earnings season. that's false. fedex has already reported. a number of other companies are reporting. that continues next week. >> and it had a good quarter. that's your point. >> earnings up 6%. generally speaking, what ultimately drives stock prices is not 12 guys in a room

somewhere in washington. >> really? what was the reaction on wednesday then? >> the earnings today, dan, were pretty mixed. the earnings picture as a whole, you're just not getting top-line growth still. >> let's be clear. like coach, they have stock-specific issues. in a general sense, revenues don't drive stock prices. earnings do. we can fight all day, and we do, about how we're getting that bottom line growth. but at the end of the day, that is what ultimately drives stock prices. >> robert frank, you have that big auction next week. you had the bob dylan lyrics for "like a rolling stone." any truth he crossed out beatle and wrote rolling stone? >> a lot of the rimhymes he started out, how does it feel behind the wheel? that was the song until the last minute. we could have had a very different song. might have been a totally different history for the song. but that's important. he almost gave up his entire

music career before he wrote that song. that song turned it around. bob dylan became bob dylan. >> mary, ge, a big decision on monday. >> that's right. they've accepted ge's deal with some conditions. we haven't heard a formal response. i'm actually going to be watching the housing data coming out next week. i think that's important. >> there's also 16 ipos next week, including go pro. it'll be interesting to see if sentiment is shifting positively for these new companies and what it says about people looking at the market ahead. >> pharmaceuticals certainly did well today. thanks, guys. good to see you all. appreciate it very much. "fast money" is coming up in a few seconds. melissa lee, what's on tap? >> hey, guys. everybody wants to invest in marijuana stocks, right? but they're too small stock. we have a bio tech company up 154% this year alone. >> imagine that. >> it's got an epilepsy

treatment that's going to hit the market. >> i think cramer's been talking about this one as well. >> this is the second time we have had him on. he's a great interview. he always gives tidbits about what to expect in terms of timelines. >> but no samples. we want to reiterate that. >> of course not. >> have a good show. sarah, have a good weekend. >> great to see you. >> "fast money" starts right now live from the nasdaq market site in new york's times square. i'm melissa lee. tonight, you, the viewer, will get to decide which unusual activity pete covers for you. you'll be able to vote at cnbc.com/vote coming up. stay tuned for that. but first, tonight's top story. consumer trouble. stocks at record highs, but is the consumer crumbling? another down day for coach, olive garden parent darden restaurants. are these individual stories or maybe signs of trouble? bk, what do you make of it? >> o