the, and among the guests jack lew, condition griffin, governor chris christie will be there deliver a keynote. carl icahn, nelson pelts, and we hope you will be there. that's it for this edition of "power lunch.." >> we'll see you tomorrow. "street signs" begins now. all right, folks. we have a good old fashioned fed fight to start the story. it may tell an even bigger story. >> we're trying to work out whether or not stocks have fallen on what basically are 5-month-old comments. here is the sentence from the printed report today. valuation metrics in some sectors do appear substantially stretched, particularly those

for smaller firms in the social media and bioindustry. and who could blame maybe some investor foss selling into those, unless those comments are old, or at least seem to be. case in point -- look at this part of the speech from fed governor daniel tururllo back on february 25th, valuations appear stretched for farmland and for the equity prices of some small technology firms, end quote. the federal report that mandy just read for you today is nearly the same as what was just said under five months ago. let's bring in steve liesman. you get our point. i know they're not exactly the same. maybe yellen more specific day, but can we blame this? >> no doubt similar comments. sill applaud rolling up the shirt sleeves, i would say the

difference is the form, one is a speech by a fed governor, the other is in the policy report to congress. here's the issue, the broader context. the fed in the wake of the financial crisis has mandate to pull financial stability up to the top of its priorities. how does it do that? there's been a big debate the last couple weeks, janet yellen with a speech saying, you know what? i don't think we should use monetary policy to guide financial stability. but she's willing to use the pulpit to guide policy, not necessarily the rate itself, but we were having a chin wag before the show -- >> let the viewers know we were screaming. i was yelling and everybody was yelling for me to shut up. >> it's the first time in our show that i stood up and said,

shut up. >> if that's an australian wag ii ism, you can understand what i'm talking about. but pointing out biotechnology and social media, are they suggesting the other sectors are okay? >> that's a good question. i don't think the fed has found the language with which to guide the market. the market i think fell for like a day or two, and promptly went up 3,000 points. so the fed may not have necessarily the language just right for how to guide the markets. the other question i have is, what is the criteria for pointing out stretched valuations? >> why is the fed even in this business? this is an irrational exuberance moment from 1996, and by the way i probably did deserve -- i was

waving -- this is old, this is old! but i get my point. >> i think what we learned from the '01 pops of the nasdaq bubble is that equities can crash and it doesn't have a big effect on the economy if there's not a lot of dead underneath. so what i would like to hear. is it concerned about the equity valuations or leverage and debt underneath, and i don't think the fed should be, as you suggest, mandy, in the business of pointing out every specific mark that's overvalued. >> if they are concerned, what are they going to do about it? we were talking about in earlier, this el would use more -- they might use the pulpit of monetary policy to talk about it, but i think yellen has said she thinks it's much better to use -- macro prudential regulation. >> they could call banks up and say, you know what? you're lending to people who are buying these stocks will be looked upon unfavorably, and we want you to back off of that.

they can do that. but we don't know if there's an issue of equity valuations or issue of leverage underneath it. we know the fed is watching the leverage in the markets very carefully. that's why it's been concerned about leverage loans out there in the market. >> i'm just concerned in a world where we are hanging on every fed word. >> what was our conversation yesterday? overxun indication by the fed. >> too much communication. >> let's talk about the opposite world. josh brown made this point, where the fed was effectively from a regulatory stepasleep at the is wheel, and the fed was not saying anything. >> i'm not saying they shouldn't be actively involved and i respected josh's comments. there's a difference between being asleep at the wheel and talking too much let's fight about that tomorrow. >> i don't want to fight. >> she'll be gone. >> i don't want you to fight, because i'm not going to be here to keep you boys under wraps.

>> you would have loved it the just shut up. >> i think i said tone it down. >> that's more mandy. >> i said tone it down, please. >> thank you, steve, by the way. here's good news, america, oil falling beloaned $100 a barrel. jackie deangelis live for us this afternoon. >> hey, good afternoon. that's exactly right. traders have been waiting for this for some time. wti at a two-month low. we've got brent under 106. you see that spread is tightening between the two of them as well. there's a couple reasons for this. first off, some profit taking, but also bay geopolitical risks are not what they once were, not really worries traders too much, supply in the global market looks pretty good. we have some libyan production coming back online and domestic supply is good here. in the serbs this has reduced some of the fears out there in terms of the consumer. we have gas prices coming off the aaa fuel gauge report says

we've seen retail gas prices, at six cents in a month, a national average for rae already 3.60. let me quantify this for you. deutsche bank says for every penny increase we see in gas prices, it's about a billion in energy consumption. so a lot of people asking now that we're going the other way, can we assume that's more money that's going to flow back into the economy? of course that's the big question at this point. back to you. jackie, thank you very much. speaking of oil and thus speaking of driving "street signs" continues to look for answers to our road and bridges mess. so today we take a closer look at what some think may be the answer -- private investment. some on the left say a private company mcing a major toll road in indiana is botching the job. we'll have another interesting debate no doubt ahead. the headlines say june retails sales capes in under

expectation. jan kniffin, this is another we were having a big fight about. to me the numbers suggest a not so bad retail environment, but some are saying, no, no, the consumers are maybe not as healthy as suggesting. >> was your former name datsun, now nissan? >> i go with whatever happens -- are you a duke or one of the -- >> muir ranno. we saw that today. allo, home, that whole piece of the business, but they were better than expected, and they revised up last month, so i think we're starting to see the point where the replacement

cycle is not such a big deal. the home is not such a big deal. >> hold it right there. are you saying that brian's thesis is correct? >> i'm saying that brian's thesis is correct, the reason we have seen slow sales for the last six months is the cars at home have sucked business out of my kind of discretionary retail and that's about to change, which is actually what i said last time i was on the air with bria brian. >> what's s>> what's so -->> wh names traded together. right now, and i will piggyback, because i lot of new

trends, but we think it's going to be one of the best retailback to school there's newness. >> um, the athletic companies continue to be very good. >> underarmour, and we've also seen some other brands as we see stores set up to back to school, they're taking and giving it to athletic. it's not just functional, but also a lifestyle.

emplgts that too, you get mea point. it's hard to predict and know what the consumer wants. >> the business has slowed down. i think that's continuing. i think we'll see strength right through the back end, and i think that's going to continue for the next six months, maybe longer. who wouldn't you like as well? >> you're seeing different things happen with retail stocks. part of it is who could be a turnaround? and that's all of that happening. i don't think we'll see any uniform performance. >> well, there's speculation about a & f, there's speculation about almost all of them being taken out, but we're also seeing

strength with people like macy's who are really executing well. better business out of penney's, and we're going to see all kinds of minksed things happen in the teen space, because it's so fearly competitive. >> by the way, do you have a phone on you? >> i do not. >> somebody has a phone. an ipad? it's the ipad. >> see technology kills us all. >> this is what i'm referring to. >> abercrombie & fitch is up, and they've come back. aeropostal is down 65%. >> wow. >> who may buy them? >> we know there's been interested parties. >> you're being pretty cryptic. >> there are hedge funds looking at retail, i think we'll see some activity.

whether it was be aeropostal, who knows, but some of these guys have struggled. some of the people we thought nobody would ever want to own, i had aeropostal sort of in that category, might want to be owned by an ecity group. >> that's it, put jan in his place. >> i think they'll connect closely to the customers the way the mall can't anymore. i think we'll see business shipped away from the mall to the retailers who have done it well. again it's macy's, j.c. penney's and a few other brands. urban outfitters is looking good and a favorite of teens. >> i know you also believe that michael kors came out with positive observations this past month.

we'll be talking about michael kors. >> listen in. >> thank you. >> thank you, mary. thank you, jan. jan rodgers-datsun, appreciate it. did bill gross really threaten to quit pimco? and some expert stock pickers. and the biggest and best are getting together tomorrow. and in our hour, it is a biggie. u.s. attorney and lawman of weight p relate eet bharara will be here for a vire interview. you won't want to miss it.

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oh i knew i forgot something... i'll just do it now. well, we're boarding. no, i'll use citi mobile. takes two seconds, better safe than sorry right? yeah who knows if we'll even get service on the islands? what! no service? seriously? no electricity, we're going to make our own candles, we're going to churn our own butter.

oh, we lost one. can't leave a bag unattended. bank from almost anywhere with the citi mobile app. to learn more visit citi.com/easierbanking tonight is the all-star, so we talked about stocks since baseball's opening day. first is golar, lng, doesn't it sound like something godzilla would fight? it's a liquefied natural gas, and zillow.com. in third place, energy company williams, and in fourth is micron technology. that list, of course leaves

out, by the way, companies that were involved in m & a. >> there are better performers, but what's the point because it got bought, it's gone. >> totally. more headlines regarding pimco this morning. "wall street journal" reporting that bill gross that is threatened to quit several times in year all stemmic bag to the resignation of the former ceo seeing net outflowing for 14 straight months. >> cnbc's big conference delivering alpha is tomorrow. one of the investors is ken griffin, a guy that runs citadel investments. it is a very rare interview, courtesy of our own kate kelly. all right, kate, you can't give away too much, because ken is probably watching the show, but i'm just going to assume, and he probably will, too, you might ask him about michael lewis or high-frequency trading. >> that will certainly be high

on the agenda, though there are plenty of other things we can discuss. he running two businesses, a $20 billion hedge fund business, and a securities business that includes a market maker trading about a billion a day in volume. that second put him in the fire line as ought thor michael lewis criticized citadel along with other high-frequency traders who he believes are rigging the market in his new book "the flash boys." he rejected that claim, but that that response was pretty measured, his view of politics is lesz so. a self-styled reagan republican, he thinks this home of chicago are -- wants to be sweeping education and pension reforming, and thinks that in general the government has meddled way too much into the markets. he's also uses his wallet to

agitate for change. he's given money for rahm emanuel and mitt romney, and the koch brothers advocacy group. the recent contribution to bruce rouner broke state records, and we'll talk about all of this, as well as what's next for the conference tomorrow. >> do stay tuned to cnbc all day tomorrow for the big headlines, names, ideas, everything coming out of delivering alpha. let's get straight to scott cohn, because we have breaking news. scott, over to you. mandy, new allegations that bernie madoff's sonses knew is a more z far more about their fraud. after all, they turned their father in after he confessed in 2008. only andrew survives. his older brother marked committed suicide in 2012. now new allegations for madoff trustee irving pick ard could ratchet up the pressure even

more. this is the latest version of a lawsuit against the brothers, alleging they knew full well what their dad was up to. among the new allegations, he created fake at for himself to purchase high-prized real estate. the real statements showed returns that were obviously too good to be true. both sons received millions in payments allegedly disguised as loans from their parents, and perhaps most explosive, the sons obstructed an s.e.c. audit of the advisory business. that was in early 2005 with s.e.c. auditors on sight. in fact the complaint says family members and other employees were behind the scenes deleting e-mails. the sons have always claimed they knew nothing about the advisory business, but an e-mail from andrew to his brother in 2005. i spoke with dan who conferred with danny, the -- everything is

in balance, so we don't have to worry. i love my job, i love my job, i love my job. oops, dad is calling again. but earlier he was singing a tune. >> what he did was awful, and affected the lives of so many people, stole people's dreams and futures and, um, us among them. i'll never forgive him for that. >> there's no word on where federal prosecutors stand in their criminal investigation. the fraud blew up in december 2008, 5 1/2 years ago, believe it or not, brian itches wow, very interesting breaking news on madoff, sort of rehashing old wounds. scott cohn, thank you very much. all right. a lot more to do. in fact herb and i a year ago made a bet. we'll see who won that bet coming up. >> indeed. we'll see you after the break.

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and when i find it- i go for it. (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours. earning season ramping up. that means the return of earnings squad. melissa lee, take it away. >> everyone joining mess today is dom chu and jon najarian.

we are getting ready to big reads on both those sectors, as well as a key report from one of the biggest nations railroad companies. 13% have met estimates, 25% have come in below forecast. first up here, intel reporting tonight after the bell, the world's largest maker trading at a high not seen in more than ten year. how much of this cycle is priced in. back in april, and so we're seeing companies buy pcs, but mkm is already saying third quarter, we're seeing it trail off. >> it's interesting, right, guys? in their own words, they said a couple months bag they're seeing stabilization. that doesn't mean that things are going down. it means that things are not going down as fast or stabilizing just a bit. but with intel it's priced in,

but there are value investors who like this stock, believe it or not because of the yield and because it trades at a reasonable multiple, and they've been expanding into mobile, and doing it very successfully i am one of those people who is bullish on the p. c upgrade cycle for the reason you already described. >> how can value investors not look at the p.e., the p.e. is 17, which is higher than its five-year average. at what point does it cease becoming a value stock? we were talking about this off camera, this is a stock that everybody loves to hate. people are reluctant to say they're bulls on intel. well dan nils on, of course, notable, into you he used to be the chip analyst over at lehman brothers. that's where he made his name. he said i own intel, it's a core holding, i'm holding on through the earnings, but everybody hates this thing. it's no a sexy name, but it does the job. >> it does the job and for a

good reason. they have a massive balance sheet. they may have been late to the mobile game, but the ceo is trying to make things better in terms of the turnaround. that's going to be keep for their turnaround under the circumstances dow transports, of course, trading at multiyear highs, and that's would you you should watch csx out after the bell today. >> csx will be interesting. we talk about it all the time. it's one of the rail companies to report, and it oftentimes gives investors a sense of what that transportation tray could look like. with csx oar talking about a stock that's performed fairly in line. it has trailed, though, the rest of its peers in radioed and rail transportation. it begs the question whether or not they'll play catch-up. they're one of the biggest rail companies in america, and they make their bones, really make their bones transporting coal, so a lot of people use this as a bellwether, a canary in the coal mine, if you will for the overall trade.

>> nat gas making the trade domestically good, but exports have been facing some head winds, because there's a global coal glut, and we have to look at the financial sector. we're looking forward to bank of america. we got readings already. >> surprisingly good. and citi -- well, let me talk about bank of america just real quick. i think it's going to be whether or not earnings are 25 cents, bearish, or 30 cents bullish. i'll just draw the line there. if it's above 30, i'm ailing it's off to the races. 17 is the next target. if it's under 25 cents, i think it goes down. right now the bets are that it's going to the up side, they're buying a lot of the 16 calls ahead of earnings. >> thanks, guys. that's it for us. see you back here on thursday. mandy, back over to you. one analyst says one key company is overpromising on next year's earnings. that's coming up in "street

talk." >> plus a year ago herb and i made a bet who will be taking whom -- who -- whom to dinner? find out, coming up. about stoc, how do you know which ones to follow? the equity summary score consolidates the ratings of up to 10 independent research providers into a single score that's weighted based on how accurate they've been in the past. i'm howard spielberg of fidelity investments. the equity summary score is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. we do? i took the trash out. i know. and thank you so much for that. i think we should get a medicare supplement insurance plan. right now? [ male announcer ] whether you're new to medicare or not, you may know it only covers about 80% of your part b medical expenses. it's up to you to pay the difference. so think about an aarp medicare supplement insurance plan,

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time for street talk, our daily runout of stock news, views and analyst recommendations. i should say, remember the dow was at record highs, strong out of the gate and it dropped on the yellen comments, and now it's positive again. just wanted to mention that. now drawing any correlation. >> did you point out also the fed commentary today, that people said were the cause were pretty much the exact same comment tear as five months ago. so what's new about it? >> goog theic stock number one initiated with an outperform rating. >> fbr said google can continue to expand the competitive advantage, but get this, the target 674 sdlrz, the stock is at 592. that's about a 14% jump from the current price. google has had a nice run. >> kroger getting an upgrade >> and bmo said kroger has better visibility on margin expansion. their target on kr, 58 a share,

about a 17% jump from the current trading price. moving along for no soup for you, yeah, campbell's soup downgraded to a harsh sell at goldman sachs. whoa. >> that's not their technical term. >> all i wanted was more soup, please. >> more porridge. they say the consensus appear out of reach. that stock is down another 2%, had a rough go so far. tough times. the name of the day is university electronics, got an upgrade -- market outperform from market perform. >> ueic, the stock is up 2.3%. the target increase, get this to 55 from 35, so a big jump today, seeing another couple bucks of up side. stock up by about 65% so far. we always try to bring an underthe radar name, and there you have it. universal electronics. is it too soon to call it

bullion breakdown? rich, technically first on gold, how did it look? >> over the last 12 months the s&p 500 is up over 17%. gold not so much. we are unchanged over that period, brian. when we bring up a chart of the last 12 months, really what we are looking at is a graveyard of failed technical patterns. i would highlight this as an example of how not to trade. in contrast, that longer-term chart is far more useful, earthy tones and enough kick to give us both the high and the low. when we look at that long-term chart that takes us back to the beginni beginning, you see that 150-week moving average, brian. we hold it for 11 years.

in 2013, we break below that key support at 1500 and the 150-week. we settle into this sideways trading range. let's call it 1200, 1400, but ultimately i see a breakdown. i'm looking at a down side target, that's key psychological level, a 50% fibonacci retracement of the entire move and brings us back to entire resistance from '07, '09. i think that's where we're heading. i would be a seller, even a short seller here. earthy tones. are we talking about wine? we're talking about gold here. >> his chart looked like a trail map from vail. >> did he say an example of how not to trade? fundamentally, is there a case for gold? is it still precious to you, chad? >> i agree with him. i think you're going to have a 3% to 7% downdraft in gold. look, gold trades on two things, financial instability, as well as inflation. you did see a pop when you saw

portugal spreads widen out. i would take the month and run if you're long gold. i do believe, though, over five years, if you have an asset allocation portfolio and liking five to seven years out, a small moderate amount would be a helpful asset class as a nondiversified asset class, but for the short-term trader, buyer beware. >> take your money and run. thank you very much. if you want more, check out the online edition in partnership with yahoo finance. speaking of gold, exactly one year ago today, folks, as a result, no doubt. of some heated scrap on the show that once again i had to referee, herb greenberg and brian made a bet. which would be the better bet, the coffee etf or the goldminer etf? herb, editor of herb greenberg's reality check. bets on the gold mine, brian bet

on the coffee. and the winner is -- brian? >> yes, are you asking me to talk? if you're saying i'm the winner, do it more loudly, please. >> no, i didn't want to steal your thunder. listen, i'm going to be fair. it was a year bet. i'll tell you what. ? ian wear, herb, i was dancing around this place, because coffee was up about 70%. i remember. i remember. i'm glad the bet is coming to a close soon, buddy, because you may come out on top. i beat you by a bit, but gold miners still up 8%, plus a 0.72%, still a good call on your part. >> thanks. i actually still own it. >> i do not, by the way. mine was play money. that's not what we do here. now you actually put real money into yours. mine was play money. >> there you go. >> it's actually interesting

what you were saying about coffee coming down. we were just talking about it the other day with jim iuorio. we're worried about the drought in brazil, and the impacts on beans, and apparently it hasn't had that much impact. big exports in june. >> as herb might say, by the way, get to know three words -- coffee, leaf rust. it's a major problem still. but herb, are you still holding on to your gdx? >> absolutely. right now i am. i thought two days ago i probably finally should have sold it, i should have sold it when it was up 25%, but you know, i'm not a trader. i just -- look, we've seen gold. every single time anyone has panicked on gold, it's gone down, come back up. i have to time line. at some point i'll peel it off, i suspect. >> we also asked you on, because we were talking about michael ko relate s just a momental, and

mary case is a -- you beg to differ, you have reg flaweded this baby. >> my goodness, i red flagged this months ago on reality check. what you're seeing day, in one day you had one analyst downgrade it, two analysts come out and cut their estimates, they're still bullish, but they cut their price targets. two analysts reiterate their bearish opinions. i look at that, you know, if you're a conspiracy they'rist, the only news here, the only news today is the company came out and told you when they're going to announce first quarter earnings, and you almost want to think there's body language that's going on, and maybe they're sort of trying to walk the street down, without having to put out an earnings warning. who knows. all i can say is last quarter was sloppy, margins were confusing, and now you have five analysts in a single day on no news, just -- you know -- >> fair enough, you red flag

michael kors is goldman sachs' cheapest stock. it is the furthest below their analyst target price. it doesn't mean their analyst will be right. >> cheaper today. fair enough, worth noting there. secondly, speaking of gold miners, bring gold, buddy. we're not going to mcdonald's. masa, or persei, maybe both in the same day. >> can i come this day? >> yes, you may come this time. >> if i'm paying, it's a different story. i'm going to invite my high school marching band. it will be fantastic. >> like last time, i took you to popeye's. you'll enjoy the chicken. it's good. >> i love red beans and rice, buddy. good bet. take care. >> you're welcome. it's been a theme of our show, not fighting with herbal. we're going to say it again.

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a couple big earns records coming up after the bell s infrastructure, bill and kelly, you're following it all. what are you going to ask him? >> the interesting thing last time we spoke with mike at ward, he was the first to say, look, we think the ruleses in first quarter took a hit on weather. now today we find out to what extent he was right, and that has implications as barclays even racing the second growth to 4% to gdp. >> verse, they will be carrying the items needed to rebuilt infrastructure so they can get a sense of how that industry is doing. it's a highly sensitive industry to the economy, as we all know in the rail industry, so we'll get a sense from him on that, and whether or not we are seeing a real growth in that sector right now. >> looking forward to hearing it, guys. thank you very much.

>> top of the hour. on that topic, everybody. the house rite now voting on a highway bill that's a stop-gap funding measurer. yesterday on the show, we ask mike burk how we can get something done in america long term. >> what we really need is bring the private sector into the equation. europe, australia, they have found a way to bring private capital to public infrastructure. we are just starting down that path here in the united states. the private sector can have a big part in improving the infrastructure. >> joining us is transportation analyst barouk, as much as it pained me to use australia as a positive example on the show -- sorry, mandy -- >> really? >> yes, mckrory bank -- a lot of people may not realize it, and a spanish firm owns a 75-year

lease on the indiana toll road. is it working? the basic answer is that it is working. what has happened is three advantages to having these private sector partners basically managing and operating the road. you have a transfer of risk from the public sector. the depoliticization of the process, and you've got basically some innovation that the private sector brings in. so what happened is there was a transfer of funds to the state of indiana, which was able to use the money for all sorts of other improvements, education, transportation, and the indiana toll road it actually in better condition than its been in years. so it's really been in that case a big success. >> i'm not loading on the united states. i'm really not. i've chosen to live in this fine country, but when you do take

examples of singapore, canada, there is so many other countries that have such dpraed success. why has the united states not been able to have the same level of success? >> sure basically the fact that the u.s. has relied on the gas tax. we've had an 18.4 cent federal gas tax that we've been paying since 1992 -- >> but it's not enough. we've been relying on it, but it's not enough. >> exactly. that's it. that's why we're looking at purpose/private partnerships now, because we really, being the u.s., need to get involved. we didn't before. in some cases that's why australia and canada, sin apour and all these other countries are. now is the time. we definitely need to be more involved. i'm going to play the other side, even though i support what you what you're saying. this is how it will work. politician a, i want to sell it to the australians. the opponents, what is then to

stop them from raising tolls willy nil will. it would be $10 next year and 15 the next year. do we need to make sure we cap these things? the public is not going to stand for some for-profit corporation jacking up tolls and screwing their wallet. >> yeah. that's actually been a problem in some places such as texas, the perception. the reality is the way the contracts are written, the amount that can be increased is actually in the contract. it's usually tied to inflation. it's not some crazy amount, and the reality is that it's actually more of a lease than a sig of an enterprise so the state can take the road back over. so the taxpayers are protected from the private sector doing anything that would be bad for them. >> interesting conversation. thank you very much for joining us. we'll keep following the story. baseball's all-stars are

getting tonight in minnesota, but we've assembled an all-star duo to give you some home run stocks for your portfolio, coming up. developers are all about speeds and feeds. it's all about latency. it's all about how fast does it run. i often sit with enterprises who ask me about how mission critical and how's the performance of the cloud. and i tell them, if you can make gamers happy, you can make anybody happy. speed is made with the ibm cloud. the ibm cloud is the cloud for business.

that's why i always choose the fastest intern.r slow. the fastest printer. the fastest lunch. turkey club. the fastest pencil sharpener. the fastest elevator. 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. as baseball fans get ready for tonight's all-star game, we want to take a look at some

all-star stocks that you might want to think about for your portfolio. let's bring in leah banet from south texas money management and brian bradshaw from boone picke pickens. leah and brian, great to have you with us. let's get straight to the picks. leah, what have you got? >> hi, mandy. thanks for having me on. one stock we like is voectionz wag. here at south texas money management, we approach a price buying value and growth stocks. this was something that was intriguing that fell under our value criteria. it's highly leveraged for the recovery in europe, car replacements were at a 20-year low last year, so we think there's a huge opportunity for repopulationment like krooikle here. >> i want to pull you up on volkswagen here, because it's up nearly 90%. >> yes, the stock has done well. we think there's still quite a bit of up side. like i mentioned, it's very heavily leveraged to europe. we think there's a lot of up side as far as the operating leverage is concerned. >> all right, brian, let's go on to you, and we appreciate you coming on "street signs." we know we've had mr. pickens on

the program quite a few times, so let's stick with energy. diamondback is one of the names we highlighted when we took a trip out to midland in october. bang, very cool ticker. some people say, man, there's no way it will ever reach its valuation. it's too rich. >> you know, it's a higher multiple stock. we think the multiples really justified for two reasons. one, just the growth rate. you're talking about a company who's grown over 100% on a production basis for the last two years in a row, and that might come down a little bit, but it's still going to be growing above 50% for the years to come. and the second thing we believe justifies the valuation is the management team. you're talking about a team with a proven track record of creating a competitive advantage for this company because they're hometown guys. they're from midland. best example is they bought 12,000 acres of minerals less than a year ago, they paid $4 million. they took it public last month for $2.5 billion. so, i think they can do things other companies haven't done so far. >> basic is a new name for me at

least. basic energy services, bes. >> one of our favorite names right now. oil field service company on share, across texas, oklahoma, the rockies. the exciting thing is they've got almost 50% of their revenue in the pe enpermian. you're talking about growth, expected capacity at zero, meaning pricing's going up, and revenues go up, margins expand and cyclical stocks like this do well in those environments. >> leah, quickly, talk to us about auxilium pharmaceuticals, down about 3% so far this year. why do you like it? >> it's actually a great entry point. this is an interesting, accelerating growth situation. auxilium specialized in college-based diseases. two of the opportunities are in frozen shoulder and in cellul e cellulite. what's also interesting is the management team. the ceo, who's name is adrian

adams, has three times built out a biotech company and pharma for a substantial premium, around 40%. so, i hate to disagree with some of yellen's comments from earlier, but i think some nice opportunities still exist in the biotech area. >> yeah, hey, brian, we didn't get your last pick, century aluminum, but it's a good reason to leave it hanging and have you back on the show. sound good? >> sounds good. thank you. >> brian bradshaw, leah, appreciate it as well. should have dug into the yellen comments with leah. >> i know. time is of the essence. >> time, time, time. >> we have a one-hour show, not a five-hour show. >> okay, and here's why, because you, my friend, are ona very important assignment the next few days. we'll show you what mandy's doing over the next few days

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and save on taxes where you can. so you can invest in the life that you want today. tap into the full power of your fidelity greenline. call or come in today for a free one-on-one review. all right, if you think airplane travel is uncomfortable now, it could get a whole lot worse. look at these drawings of an airplane seat included in a patent application by airbus. yes, folks, it is basically a stand-up semi bicycle seat with a small back rest. but thankfully, as phil lebeau points out, just because airbus applied for the patent doesn't mean, i hope, that it has any intention to put this mercifully into any of its planes. my gosh. >> it looks like one of those -- >> tease your thing, come on. running out of time. okay, so, i am heading off straight after this show to the 25th annual american century champion, the premier celebrity golf tournament. we are standing here on a

putting green. however, someone forgot to bring the putter. no names. however, i was going to do a little putting practice, because -- what did somebody say, go? >> four. it's what you yell when you think your ball might hit somebody. >> anyway, i know nothing about golf, but i do know about some of the big interviews we'll be bringing you from the event from the beautiful lake tahoe on thursday. >> i'm jealous. >> thursday we'll broadcast live. see you then. >> there you go. and welcome to the "closing bell," everybody. i'm kelly evans here at the new york stock exchange where janet yellen is all the talk. >> yes, she has been all day. i'm bill griffeth. usually, the fed chair will boost the market with her dovish comments, but today she took the wind out of what was a pretty good rally on the open this morning. the dow was up about 65 points. she did it by calling out social media and biotech