results today and says it's still intent on getting its hands on family dollar despite the fact they're going with another partner over antitrust issues. dollar general say us it would ditch 700 stores to get that. presumably sue, higher bids coming through at least from one of the parties. >> that does it for power lunch, see your tornl. >> street signs agabegins now. we begin the show with a simple question. up or down. which way will the economy and the stock market wind out the year and could one vladimir putin hose down all of our high? happy national cherry turnover day. developing details with the cyber attacks against banks. what the government might do to mexico that could make soda companies sad, but millionaires even richer, and we'll meet a doctor whose prices are so low that even patients with medicare or obamacare are going to see them because it is still cheaper. >> it's an amazing story, can't

wait. it's also in national bow tie day by the way, let's look at the markets. we come well off the lows of the day, and excuse me if you have heard this before, it is another light trading day. guess what, it's not just stocks, it's currencies and bonds too. even by summer slow standards, and it has been declined for several years, but you know what, if your 401 k is moving up, you don't care. we could have the first full week winning of streak of 2014 for the dow and s&p. >> for the record highs and positive signs for the u.s. economy, one bad headline from the ukraine seems to send us down. michelle joining us now to explain today's news which apparently involves either a russian invasion of ukraine or a couple of soldiers on vacation. >> they were lost, brian. they were lost. >> yeah, there've been some significant developments today

which suggested a big escalation of the situation. roughly three hours ago, nato released five satellite images that we're going to show you right here that they say show russian combat troops involved in sovereign territory of ukraine engaged in military operations. this one for example, nato says shows russian self-propelled artillery inside ukraine on thursday of last week. and the general who held the news conference as they released them told reporters, there's been a significant escalation in both the level and sophistication of russia's military interference in the last two weeks. almost immediately, angela merkel, the leader of germany responded saying they will consider new economic sanctions against russia on saturday at an eu summit. now these images we're showing you come on top of earlier this week when ukrainians captured ten russian paratroopers 12 miles inside ukrainian territory. those troopers were forced to

talk to the press at a news conference held by the ukrain n ukrainians with. then in response, the mothers were seen on tv in russia today begging for their son's return. so there has been a significant military escalation of the situation. what we wait to see now is will there be a significant economic escalation of the situation. that has been the pattern before, first they started with sanctioning putin's friends, leader of russia and friends, not the leader directly, but his friends, but there was sec tomorrow sanctions as they called them. different sectors of the economy, and they've gotten bigger and bigger targets in their sights each time that has happened. are we going to see that again and is that going to disrupt the relationship between the two is what hurts things like the german stock market, etc., back to you? >> you're right, and it's interesting you're talking about the responsibility of new economic sanctions. in just a moment, we're talking about what could be the russian retaliation to the sanctions we've slapped on.

thank you very much, michelle. so let's put those tensions offshore, aside for just a moment and put the mag any fieing glass on what is happening here in the united states. and no fewer than three economic reports today are spelling hopeium. two, jobless claims falling for a second straight week. and three, more americans signing contracts to buy a home in july. let's get to the president of stryker management and the chief economist. todd, i'm amazed, you said despite all this news in the united states, is the tensions offshore like ukraine, isis, you name it that's keeping it up at night. why is it keeping you up at night when it hasn't hurt that much? >> well, they're credible threats. we have to keep that into consideration. look at the spillover affect. if you look, right, what's taking place in the ukraine is not going time pact us directly here in the united states, but the spillover impact could because you're looking at how it

impacts germany, the euro region and it's going to hit the bottom line numbers. that's where we're going to be hit. but that's a long way away though. until then, the markets will continue soaring high per. >> linld si, i disagree -- lindsey, i disagree. i'll go to lindsey because she's out there. we don't export that much to europe. i understand the fear, todd, about germany, but the reality is we don't import much russian oil, if any. we don't export a lot to europe, it's a small percentage, i don't see the hit. is there a connection that i'm missing. >> remember too that the forecast for second half gdp in the u.s. has been very little changed. so we talk about the good reports that we've seen as of late, and sure, an extra two tenths of growth is a welcomed step in the right direction, but we're averaging that off of a very deep decline this start of the year. we're growing it about an average 1% pace. and we didn't see change in terms of the composition when we

talk about consumption. again, it's a step up from the start of the year, but a far cry from the 4% level we saw in the second half of 2013. going forward, very little has changed. regardless of what's happening overseas. >> do you want know answer that? >> please, go ahead, answer that or my combative nature. >> she's right, i mean if you look, everybody's focussed on the quarterly number. this economy's growing domestically at 1 pkts. if we go 3% in the second half, the average for 2014, we finished the year at 2%. with that being said, none of those numbers right now are taken into account wlast taken place with war overseas. and the bottom line is -- >> do you think that the doctor in des moines who wants to buy a new cad lick is saying i can't? no, the ukraine might go to war. he's not saying that. nobody says that. >> this stock market hasn't seen a 10% decline in over three years now. we went through a horrible first quarter. you had minus 2.9% gdp, geopolitical events, bottom line

is the market continues to persevere, however, if you want to add in the ancillary benefit of a potential geopolitical hostile event where the united states of america gets involved, that will -- that's way down the line. >> mandy's foois ri intro had to do with the economy, not the stock market, todd. and the economy, as we've said a billion times isn't the stock market and vice versa. >> valid point, however you can look at a number of things here. discretionary incomes. people spending money. what's the holiday shopping season going to be examine i'm optimistic. i think this market's going higher. lindsey. >> i think it's very hard to be optimistic when we talk about income growth continuing to waiver. and we talk about wage pressures which were stagnant at #.9% despite the fact that employers are taking on pleas. they are low wage, temporary part-time workers. >> how can you say these aren't

hit now? look at retail sales. short lived rebound in february and march, since then we've gone to flat -- >> why does matter? >> the consumer is two-thirds of the economy. >> because we have people that are smart and they're going to tell us to be cautious and the just because argument that this stock market should be selling off. it's not going to happen. look, we are witnessing history right now. every time you hear about roger fedor, everybody's witnessing history, this is stock market is going to continue to rise. it doesn't matter because it continues to persevere. there isn't that one catalyst that's going to get the bears out of hibernation, and right now, we're fine. the fed, you can play the fed if you want, but they've been transparent. and we're looking at higher interest rates, but it won't happen until next year. >> i agree that you can create shareholder value, but again, that doesn't reflect the fundamentals of the economy. that means that main street, that means that the vast majority of americans are struggling. and that won't translate into 3

or 4%. >> they are struggling, no doubt, wage and equality is too high. but i will say that tax rates, federal income tax rates from the middle class. it does help a little bit, gas prices have come done, but lindsey, guys is our chart ready that i threw at you? here's good news. i don't know if anybody else has talked about, government contributions to gdp are on the rise. they fell a ton. and we have a chart up for the base here from the st. louis fed. it shows that we don't have it ready, imagine a chart where a line goes up and that's what it looks like lindsey? my blood pressure. >> lindsey, do you want to respond? >> oh, well certainly, government spending has gone up, in the revisions that we is that true morning, government spending was reduced, but i don't necessarily view that as a positive. it's not the government sector that creates jobs and creates investment, that's done in the private sector.

so i would have been much more pleased if we had seen an upwards trajectory in the consumption revision. >> final words todd, make it quick. >> spending is 20 to 25% of overall g. . that number won't be as significant. >> my team is awesome. it's my fault. like 156, can we make this chart? we're going to show our viewers some where in the show. >> great to have you on, feisty, love it. >> do you have an account at jpmorgan chase? you probably thought your money was safe. wrong. the bank is among the victims of a massive account hacking attack. the fingers are pointed at russia. >> your buddy putin todd, there you go. horrible story about a ceo kicking a dog in an elevator. now, whatever you think the story, it's awful, should he be fired? he has been punished, we're going to let you know. tweet us your thoughts, probably read some of these on the air. i.

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why are we showing you paul corps pll? it is one of the best performers today, mandy, it is up month to date, quarter to date, it is one of the top performers year to date. it's up 3% right now. and i don't think we've ever talked about it. >> i've never seen it. it would be a good under the radar name for street talk. we'll keep it on the radar for under the radar segment. >> put it on the radar. jumbo 747. >> it is everyone's nightmare. you think your money's safe

parked a at reputable bank? five financial institutions, i including jpmorgan chase has been hacked. the account information has been sigh fenned off and the fbi is investigating whether it's russian state sponsored hackers behind it. what is the likelihood that this is in retaliation for the u.s. slapping sanctions on russia? >> well we don't know that, mandy, we don't know who's behind this, the fbi and jpmorgan are keeping a tight lid on the investigation. what we do know is that the fbi says several banks were involved in this hacking attack. we've been calling all the major banks today to try to get a sense of who was involved here. so far, not one bank has fessed up to being involved in this. we're getting a lot of statements from banks saying there's no indication that we've had any damage yet, but no banks defintitively saying bay the way, we haven't been hacked at all. a lot of confusion out there. banks reluctant to stick their

nose up and get targeted by hackers. a couple of points from jpmorgan, they're not seeing any unusual fraud activity that the time and working closely with law enforcement on this to find out exactly what happened here. and they say they're taking steps to safeguard sensitive or confidential information. they also say that customers are not going to be held liable for fraud. they say those customers who are impacted, if any, will be made whole here, mandy, maybe not something for the customers to worry about, but definitely a havoc for jpmorgan management. >> thanks, we appreciate it. joining us now is president and ceo of the american bankers association. former governor of okla, frank keeting, thanks for coming on the program. tell viewers why they need to be able to trust banks to do the right thing technologically? this is not the first time we've heard this story. >> no, those of us who use banks, which is everybody. smallest bank or the largest bank, if those records, my

money, my confidential financial information is compromised, i'm not going to a competitor, i'm going to bullon, i'm going to put my money into the bid. i think everybody knows that. the amount of money institutions large and small are spending in the cyber space is very significant, the corporation now between the u.s. government and individual financial institutions is more solid, better than its ever been, and it is obvious in need for even more improvement and growth, but obviously, if i'm not sure about using a, an electronic method to pay bills or to secure my assets, i'm going to go in another direction. so it's extremely important for banks to be safe and it's extremely important for the public to know that the banks are investing heavily. their money is safe because if there is a problem in virtually every case, the bank will make the customer whole. so those are really important good news messages, but it's always a worry, these things happen all the time.

unfortunately nation state sponsored in some cases, certainly criminal enterprises in many cases, but very worrisome. >> yeah, it is worrisome, but it's good, the message that hopefully the bank would make you whole even if your account information or money was stolen, but i was one of the people, and i'm not a paranoid bhoern thought, is my money safe as well with my money in a u.s. bank? even if its put more investment into fire walls and security systems and the very best protection that they can buy, is it fair to say that we're still not 100% safe? >> well, there are technologies that are moving up and down. obviously people who want to get what you have, they are going to use every creative method possible, home, and you don't have an alarm system, that's an indication that you're an easy target if you don't have double bolt locks and lock your doors. so in the financial services space, it's the same thing. the thing about the target

breach, the fact that somehow or the other the heating and air-conditioning guy got access to everything in the space, you would say, aren't things siloed? so i'm -- my career has been basically just supervise before i was governor of my state, the federal, criminal, and federal law enforcement establishment, but this has gone on for years trying always to be not just one step, but 30 steps ahead of nation state accuracy as well as criminals. it's not easy. >> let's in the forget governor about insurance. fdic covering anything, nothing's happened yet with the money, but it would cover something? >> yeah, fdic is hugely important to know that my savings account is secure, but what about my checking account? what about my mutual funds, what about the information in a brokerage account about what i have or what i don't have? the worst horror would be to wake up in the morning and the institution, your brokerage account, they don't know you're a customer and all your

information's gone. so, we, in the financial service industry, not just banks that i represent, have to be as aggressive as can be in this space. demanding the best, the latest intelligent and provide the fire walls that mandy mentioned to protect us, our income and assets. it's hugely important, and banks, i know the banks that we represent at the aba which is from the largest to the smallest are extremely aggressive in spending lots of money to protect us as customers. >> frank, let's switch gears a little bit and talk about the fdic's second quarter earnings report. one line struck out to me. profitability is down compared to precrisis levels. and i know that the banks are doing what they can. they're cutting expenses and in some cases those expenses are unfortunately salaries of employees. but you can't keep on cutting expenses forever, right? what more can banks do not current environment with all the extra rovelation to increase profitability?

>> let's focus on the good news. for the first time in the history of the united states, the banking. >> i america, all of the loans out there to you and me and small business, $8 trillion. it's never reached that figure. the number of chargeoffs, defaults, the number of in effect people out there who aren't able to pay back timely or at all are way down. so that's extremely good news, but the fact of the matter is, even with business lending going up and really some very strong numbers, we have a big problem in the mortgage space with the qualified mortgage resumes. huge student loan debt, a lot of young people who should be otherwise would be buying houses are not doing so. and also, just the compliance burden itself. for some of our community banks, smallest institutions, that's anywhere from 10 to 20% of their net income. and that's a huge percentage. just imagine there in new york if a restaurant had to take 10 to 20% of the income to satisfy

the health department of the city, you wouldn't have a very good shrimp salad. >> and also the low interest environment as well. governor, thank you sir, we appreciate your time. okay, still ahead. the video of the ceo sports caring company kicking and yanking a puppy has drawn a shocked reaction. >> obviously a terrible personal action, too bad the dog didn't bite him, but should he be fired? we're going to address it, coming up.

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now for the outrage story we told you about. man captured tyke kicking a a puppy and yanking it. we have decided not so show you the full video. the man is the ceo of center plate. they provide food service for stadiums. >> it drew a sharp reaction, threats to boycott the company. now center plate has come up with a punishment, 1,000 hours of community service working with animals for the ceo, as well as a $100,000 donation to a new charity established in the he is also on indefinite cked. probation at the company now. >> he will not been fired. i did a twitter poll asking if he should be. fire him, he deserves nothing less. fired, it's telling us it's okay

to abuse animals and get away with it if you have money. there were lots of others. some were more graphic. but every single one of them brian said he deserves to be fired. we should note also that hague does face the possibility of criminal charges. what do you think about this? >> don't kick dogs, man. i have two dogs, i treat them sometimes better than i do, their bed is more comfortable than mine. i wish the dog would have bit the dog. >> i think it's vile, incomprehensible. i think what this is really coming to light is at what line do you say that's his personal line of and if he's a good job as a ceo, should it not go to his community life? he's been pubbished, vilified, he has a huge amount of public humiliation on his hands. i'm surprised, quite frankly that i think everybody has come back and said no, no, he should be fired. i think sometimes there needs to be a line because people out

there are doing bad things. if every person that did something bad was fired, there'd be no one left. >> there'd be you. >> i'm not an angel either, but i do not kick dogs. i think there has to be a line when it comes to things like that. >> dogs bite. >> bite back. >> bite back, man. >> bite back. all right coming up, what do diamond rings and credit cards, darling have in common? apparent lay lot, but they're both in the street talk. and doctor says he won't accept obamacare and his business is booming, and even people with obamacare is coming to him. he's coming to us live. latte or au lait?

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board value the hedge fund run by jeffrey smith which is replacing the entire board. it said it's extreme disappointed the company delayed the shareholders meeting. you can see they're up at session highs now flat on the session, back to you. >> thank you very much. time for street talk. recommendations with a fun and tiffany seeing a nice boost in its target price to 112 from 04 at credit sweeps. >> solid second quarter results, right? supporting its longer term belief that tiffany will change its gold and silver business which will drive at 9% year to date. by the way, the average target price is 109 bucks. >> visa getting a downgrade from raymond james. >> simply signed one thing, lack of catalyst. james says listen, not a lot of catalysts out there. others feel differently. the price target average on visa, 2.50 a share. either analysts have work to do or they're going to have to

start cutting their estimates. the stock is $35. >> bob evans getting a downgrade to stevens by friend of the show. >> he says sell it. cuts it to under weight, likes the long-term story. simply say it's overvalued. his target, stocks at 44.5, 10% decline from where it is now. >> getting out to an outperformance. >> kbw met with management and came away more positive on the name. about 20% of upside in the stock. >> and the under the radar name of the day, producing and packaging carbonated beverages. >> they're actually based in toronto which is a spectacular city, but the winters are harsh. the headquarter is in sunnyny florida. it was up from a buy to hold. stocks at 7.5, you do the math, plus 3.2% dividend.

>> should we tell people why we're sitting instead of standing? >> no. >> okay, no, okay, fair enough. okay. on deck. all right, we don't have time for talking numbers right now, but on deck, when gas dos down, this group may be one to buy. we have a chart to prove it, it's a tease. >> it's a tease. okay we're also speaking to an oklahoma doctor who says his fastest growing group of patients are obamacare enroll lees, but he doesn't not accept obamacare insurance? huh? what gives? there's more to the story that meets the eye, he's waiting in the wings. tdd#: 1-800-345-2550 searching for trade ideas that spark your curiosity tdd#: 1-800-345-2550 can take you in many directions. tdd#: 1-800-345-2550 you read this. watch that. tdd#: 1-800-345-2550 you look for what's next. tdd#: 1-800-345-2550 at schwab, we can help turn inspiration into action tdd#: 1-800-345-2550 boost your trading iq with the help of tdd#: 1-800-345-2550 our live online workshops tdd#: 1-800-345-2550 like identifying market trends.

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so every time you use it, you're not just shopping for goods. you're shopping for something great. learn more at buypowercard.com now we'll do talking numbers which of course is our daily look at a stock from both a fundamental and technical perspective. and today we look at alabama ber com by and fitch -- abercrombie and fitch. todd, i'm going to begin with you, alabama ber com by was lousy, then great, now it's down, what are the charts saying? >> well abercrombie is interesting, it's actually still recovering from a big gap down

exactly one year ago on earnings. so we dropped to about the 4625 exactly a year ago, it spent the last year recovering from that 20% gap down. i mean abercrombie performed well, its been a in nice rally through the last 12 months. it's beat on every earnings consensus since, but we've arrived at that gap level from one year ago to about 46 and a quarter. that is now acting as resistance, anybody would be bringing supply to the markets. so i think this turn around story in abercrombie, even though its been strong in earnings, might be at technical resistance level. >> okay. what about the fundamental side for abercrombie and fitch, mark, what is that telling you? >> mandy, a lot of times i love to get involved in company that are bleeding. i have to think that it's about to stop. in abercrombie's case, i don't have confidence that the doctors know basic first aid.

this is a company whose same store sales declined since 2011. the company's cash flow, they don't consistently generate operating cash flow, only five times out of the last ten quarters. and the company's conference call this morning, the ceo said he was pleased with the progress even though he guided same store sales to be down midsingle digits for the full year. and he's pleased? he should be disgusted, he should by saying that they are unacceptable and these are the immediate steps we're taking to reverse that trend. so, if i'm a shareholder, i'm not pleased, and i would not touch this stock. don't be a hero. >> don't be a hero. i think actually the, jeffrey, the ceo of abercrombie and fitch was the ceo of the year, wasn't he? >> i think he was. saw something to that effect. >> yeah, and if he's so pleased, why isn't he buying stock? he hasn't bought in any years. >> google them, bing them, look

them up if anyone's interesting. >> check out the online edition of talking numbness. >> coming up on the closing bell, new report says, and this is disturbing, 80% of active money managers are underperforming. kelly, i'm not a math wiz, but that's eight and ten, that's not good. >> i was going to make a dentist joke, but i couldn't come up with it. it's not good guys, we're going to talk about it. by the way it's probably one of the reason why is, and there's several articles lately talking about this, a lot of retail investors have moved to more passive indexing strategies. we're going to weigh both sides for you as we look here at the market, down for about the second session in nine as geopolitical attentions weigh, see you at 3:00. >> thank you very much. and today not stealing my cohost. how would you feel if you took out a health plan under a the affordable care act, and

it's cheaper for you to pay out of pocket? that's happening to a lot of people. for one oklahoma doctor, it means booming business. joining us no is keith smith, director of the surgery smith of oklahoma, dr. smith, this story really caught my eye this morning. you know people traveling from afar to see you because your cost of care and their travel to get thereto can sometimes means less than their patients obamacare deductibles. how can that be? >> well it's not just the patients that have the obamacare plans, it's anybody that has an insurance policy, the premiums have skyrocketed so much since this legislation has passed that they've had to increase their deductibles to levels they never imagined. and they go on our website and they find out that when we have all our prices online, they can actually buy their health care cheaper than they can buy the coverage. >> this is incredible. >> somebody has -- >> go ahead.

>> well our pricing is online. partly to start a price war and to inject, you know, some of the free market in transparent pricing into health care. also, you know save people money. there are people that come to us from all 50 states now, except hawaii. the first people were canadians, they found that they could actually, they could actually buy health care at a reasonable price. >> i think this is fantastic, and it's obviously very transparent and it's free market pricing, and you're looking at what it really costs to treat a patient, but my question is, how can you do it so much cheaper than say the hospitals who have a chart up there right now for a pacemaker surgery, you charge 11,400. hospitals apparently 95,000 plus, how can you make it so much cheaper? >> well the question is not why we're so cheap, the real question is why are so called nonfor profit hospitals so expensive? the real answer is though that our facility is completely owned

and controlled by the doctors who work there. and by virtue of that arrangement, we've eliminated the most greedy profit seeker from health care and that's the big corporate hospital. all of the money that you see on our prices goes towards health care. we're not buying out competitors, we're not buying physician practices, we're not advertising at expensive sports venues and advertising and building all over the place. what you see on the website is what it actually costs to take care of patients. >> i debated in my head asking you this question because it's going to come across like a jerk, but everyone thinks i'm a jerk, so i'm going to ask it. are you a good doctor? >> yes. >> do you know what i mean? we have the adage you get what you pay for. and a lot of people might say, doctor, i don't want to the cheapest option. are you as good as those big hospitals that charge eight times more? >> yeah. and i would argue the hernia

repair that cost $30,000 across town from me is not ten times better than the $3,000 hernia on our website. in fact it's not as good. it's counterintuitive, here's the argument, if you find really high prices in health care, all that's evidence of is the absence of a market. it just means that competition is being stifled. when you find more reasonable and lower prices, that means there an active market where there's competition. and prices tend to fall and quality tends to go up. where you find the lower prices. so it's actually an inverse relationship in health care because the market, the free market has been so stifled in this country by very cartel like arrangement between the big corporate players. >> do you know of other medical centers that are able to do what you're doing and do you think we'll see more of that? >> yeah, in fact oklahoma city has become quite the medical tourist destination. people are flying in from all over the place to go to, come to

my facility, there's a cardiac hospital, there's an orthopedic hospital, there's a full service hospital. group of oncologists, yeah, we're being joined by people all over the country. some because they see it as the right thing to do, some because they're tired of losing business to us, and we've actually formed a outfit called a free market medical association to get all of the players together. so the buyers and sellers can meet each other without the intermediaries, and we can do something about the real problem with health care, and that's not lack of coverage, that's the cost. >> you're a good businessman as well as a good doctor, if you took over tomorrow, a giant corporate hospital or hospital chain, what would be the first thing you did? >> well, i'd probably let a lot of people go because there's so many people that are involved in the corporate institutions that have responsibilities that do not translate into patient care.

all of the physicians that would be employed by that hospital would be given their pink slips and they would have to be in private practice and live or die by the same discipline the free market dolls out to every other business and industry in this country. that's where i'd probably start. >> dr. smith, let me take that further earlier on this week, we met and spoke to the new ceo, the first ceo of obamacare. if you were in his shoes, and he's got, you know, a lot of things to do ahead of him. what would be the first thing you would do to make obamacare get better? >> i would resign. it's an impossible task. the central planners never get it right. there is, there is no way that health care is going to get any better because there's more government. government is the problem with health care in the first place. so, i find, i wouldn't even take that job if i woke up in the morning, i would resign. >> okay. dr. smith -- >> that is a tough job.

>> it is a very tough job. its been a pleasure, thank you very much for joining us. i'm sure the viewers found that fascinating. okay, are you pocketing and saving all that money you're getting from lower energy costs? one look at our chart will suggest actually you're just spending it. at least you're doing your bit for the retailers. and helping hand from the government to big sugar that should leave a very sour taste in your tax payer mouth. (vo) watching. waiting. for that moment, where right place meets right time. 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.

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and find out more about our two-year price guarantee. comcast business. built for business. we know retailers having a rough day, check out this chart. this is interesting. okay, retail etf is in white up top, wti crude oil and basically gasoline is green on the bottom. it's going back a year, take a look folks, you can see in the right hand side, the i ddiverge, nothing is perfect. when crude oil goes down, retail tends to go up, so if oil keeps falling, gasoline keeps falling, watch the retail space. we've been bashing them forever. maybe this is good news. here is a story that might leave a bad taste in your tax

payer mouth. according to the report, or a report, the u.s. is about to slap import duties on sugar from mexico. u.s. big sugar is complaining it simply can't compete and prices are down. and rick joining us, we know prices have dropped the past couple of years, but sugar has doubled over the past ten. is this just another sweet version of crony capitalism to boost big sugar millionaires or am i being a conspiracy theorist? >> let's look at the fact, the u.s. is the sixth largest sugar grower. of course mexico is the seventh. unlike the top five, brazil, ind india, european union, china, and thailand, mexico has aen unique situation because after the 94 naft agreement, they said in 2008, mexico can export as much sugar as they want unfeathered. well the problem was is you look at the chart up there between 2009 and 2012, sugar was going

hog wild. bad weather using it for ethanol and nobody complained those years how mexico was exporting sugar. now the sugar prices are down for many of the same reasons corn and wheat is down, bumpered crops, foul. but remember, the protected price is 24 cents where the government steps in. world sugar is about 15 cents and u.s. sugar prices are getting close to that 25. they're about 27 or 28. no matter how you slice it, we overpay. it isn't world war ii. i don't understand how people want to push the import/export bank but don't like subsidies the mexican government is giving to sugar growers can't see the similarities. >> men and women struggle to keep their manufacturing jobs that go overseas. we had reports yesterday that gm may start outsourcing or even building shechevy equinoxes in mexico instead of the united

states. it is like picking winners and losers here. >> exactly. that is why if we have the right regulations in a free market economy, these things will work out. we could make it every company wants to domicile their manufacturing and production in the united states. but no, we want to build walls around to keep our domicile companies think tax inversions here. if we're keeping our businesses in, we're probably keeping foreign businesses from coming here as well. >> rick, appreciate it. thank you very much. okay. so where should you be investing your money these days? we have top-notch sector players for your portfolio. jo we've been talking macro about a lot of things today already on the show. let's go real microhere, michael. i believe you have come along armed with no less than three stock picks. let's start. ford. why do you like ford? >> i think ford is a perfect type of stock to own at this point in the market cycle.

it is a cheap stock. they just had a good quarter. i think the f-150 is going to be a killerer product for them. international profitability which has been gone forever is finally here at this point in time. and finally, it has a great difficult dent that will pay us. so it is cheap, i think it is going to start growing again, they have a great product. we have an old auto and vehicle fleet in the u.s. it is perfect for right now. >> what about you, brian? where are you investing right now? >> well, play along the ford theme, look at industrials. from our perspective here, you look at 2014 and it's been a real story about broadening global growth and from that perspective we look at the industrials and say, this is an area you want to be playing in. as we get to this part of the cycle, likewise, you'll look at some potential rotation. we have seen more defensive, staple areas doing well at this point. as the market tries to take a leg up moving out into 2015 it will be looking at the more cyclical buys. we'll wait for pullbacks.

but big picture, industrials look like one of the good areas to be. >> michael, back to you with some of your other stock picks. energy 21. this is actually a stock i-even heard of. maybe it is one of our under the radar names we could use for street talk in the future. but put it on the radar for us. >> sure. energy 21, exxi is the stock ticker. it is now a fairly big company because they apirdcquired epl o and gas and they are now the largest offshore driller in the gulf of mexico. i think they have a very long-term strong production growth ramp, a lot of runway there. just recently's been some drilling setbacks a little bit. this is a very technological, technology-based type of drilling program they do. investors were disappointed and they have killed the stock. it trades at a very steep discount to its net asset value right now. i have confidence in the management. i have confidence in the long-term runway on production growth. i think oil prices are probably bottomed and may work their way up a little bit. i think it is a good play right

now. it is very cheap, again a great dividend and are you buying it at a very opportune time. >> brian, what do you think about investing in the energy sector at this level? >> it is going to give you a decent size exposure. clearly the overhang just vis-a-vis crude prices, maybe looking for a little bit up side out into 2015. looking at the more cyclical bias, consumer discretionary looks attractive. the consumer has rebuilt itself over the laugh four, five years. we think areas in that area given the more cyclical bias we have towards the market will look to outperform in some of those more defensive areas. if you can find dividend growth and not hide out in super conservative, that dividend growth story seems to have a nice little bias. particularly for incorps oriented invest es as a goas a o

supplement some of the income. >> you call it the rodney dangerfield market. it's getting no respect. the last wick that we don't have time for from michael is q2 holdings. small cap cloud based online banking software company. coming up, new york city's biggest sporting event of the year is going on right now. robert frank is there live. he'll be joining us after the break. the fastest intern. 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.

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aka queens, aka new york city. business attended sponsorship undergoing a bit of a revolution. old duopoly of nye ike and adid being taken over. maybe even word after michael jordan sighting. >> there was one with roger federer, both big nike brands. for years tennis has been dominated for decade by the swoosh aes and skriptripes. h & m is now sponsoring burdych. djokovic struck a five-year deal in 2012 and they're sponsoring hill. they are also sponsoring the top male player in asia. when we asked uniqlo why they

are doing it -- >> you have to be on your game every day to survive. i always tell my people if you think you've won in retail you've lost because tomorrow somebody else is going to come up and if you're not innovating all the time and changing your game and staying on top of consumer taste, you're going to fail. >> guys, tennis is one of the few truly bloeglobal sports. as weise companies look to take over the world, you'll see more of these logos on the court. >> robert frank, looks lovely out there. hoping to catch a little tennis as well. so brian, we have your chart. >> we'll do it tomorrow. amazing chart tomorrow! tune in. okay. so i have something for you. it is a gift. you said at the top of the show that it was national cherry turnover day, whatever that is? i also said it is national bow tie today so i found one for you because i think you might have

said, "i will never be caught dead wearing a bow tie." that's highly offensive to bow tie wearers. >> i have no idea how to -- by the way, we sat down because -- i want to apologize -- i thought i was being nice getting you a cup of coffee before the show within spilled it on her. have a great day, everybody. "closing bell" is next. welcome to the "closing bell," everybody. i'm kelly evans at the new york stock exchange. >> i'm scott wapner in for bill griffeth. the russian bear bringing out bears today. we're off our lows but reports of more russian forces entering ukraine set the tone for the day. clearly that's one of the stories that's been out there today. some more fighting over in the ukraine. maybe a new front making investors a little bit nervous. but as we said, the market is way off the lows.