be, and how many times be did deflated balls be said i? >> checking the market now, the s&p is positive by nine, and nasdaq is positive by 15. >> that's really it for "power lunch." >> that is. we'll see you tomorrow, and "street signs" starts now in san diego. i like that. welcome to "street signs", everybody, live in san diego where it's warm, much warmer than the north east, but it's not sunny. anyway, the nation's top financial advisers are gathered here for the annual tdameritrade conference. the ceos standing buy here, and we got some free financial advice from two top financial

advisers, and if that's not enough for you, we have a special guest joining us later on, and you can guess who it is. nonetheless, i'm going to keep it a surprise. and brian out there at the mother ship. i don't know if you can see behind me, but that's coronado, and there's two turrets, the hotel where they filmed with monroe, "some like it hot", and there's a place of importance in your family history as well. >> where my parents honeymooned back in 1970. a shoutout to the valley middle school vikings, as a 1985 alum, go vikings. enjoy. we'll see you all hour. there you go. a market check, the dour jones industrial average is up now at 130 points, being generous, but down this month, and if we end lower, it's the first back to back monthly drop for the dow since 2012. let's look at oil again. that's shaping up to be thee

story so far of 2015, crude oil flat right now, but down as low as 43.58, and they are yielding 7.7%. enviously back now to san diego. >> wonderful. okay. well, i got here with me, as i said, the ceo, the guy who runs the joint, great to see you, fred. >> great to be here. >> start with the survey for 2015 from the raas that you hold, interesting findings here. the first question was the impact on client market views on political events, and majority said it was somewhat negative which is interesting because i guess these days clients are savvy, very geopolitically aware seeing what's going on around the worlding and the majority are concerned about what's happening. were you surprised by that finding or not? >> not at all. not at all. think about all the news today and what's going on whether it's russia, ukraine, the middle east, isis, you know, the growth of china.

there's just so much to worry about right now. the market's continuing to be -- the u.s. economy is good, but there's a lot of geopolitical concerns. europe, you know, i should mention europe here -- that's being watched right now. >> absolutely. is the u.s. and u.s. equities the best place to be? >> you know, i think so. i think if you look around the world today, where to invest, and one of the reasons they go is because of the confidence in an environment like this with what they should do. look at the world, the u.s. economy is the best place in the world right now. >> what's the outlook for interest rates, and how does that affect the outlook of all the above? >> i'm not an economist, and those who predict, get it wrong. in our business, people say when is the fed going to move? i talked about you i think they would rather have inflation, asset bubbles than deflation. federal reserve banks have a challenge about battling deflation, so i think they'll wait longer is my personal feeling. >> personal view. when you say longer, 2016?

>> i don't know about that. i think we're not going to -- my guess is we're not going to see a move until the fall at the earliest. >> feels it's playing into the volatility of the markets this year, double volatility of 2014. as -- you come from the perspective of the retail investor. how does the retail investor navigate an unpredictable environment? >> depends on the attitude. people who are long term investors, market is volatile, but you have a long horizon, and you stick to a certain asset allocation and investment objectives, and these are times that really test whether you got the risk appetite or not. if you're more active investor, you like volatility giving you a lot of opportunities to trade, and we're clearly seeing that in our business. >> you certainly are, but what keeps you up at night? with all the years of experience, there has to be things that make you toss in bed at night. >> two things right now, there's so much stimulus and most of the developed economies around the world that i think when they

start to pull that back, there's going to be a choppy market. it's going to be a little messy and volatile, and i think we have to expect that. that's the first thing. second thing, it's just what's going on with technology today. here we are out in california with a lotruptive technologies today. they are trying to adapt to the environment, and so i think you have to pay so much attention to mobile technology, social media, big data analytics, and cloud computing and leverage them in the business as best you can to confront, you know, those disrupters. lastly, regulation. there's change from regulation from dodd-frank, from basel three. we have to watch it. >> what would you do to improve the front? >> you have to look at what's happened from the regulation that's come in. clearly, the banking system's been more conservative. they are buying treasuries, and, you know, it's causing downward pressure on the yield curve. there's a lot of influences going on now, but to get the economy going, you need the

banking system working well. >> you certainly do. you said expect more volatility, right? >> absolutely. >> that's in your krcrystal bal. define volatility. are we overdue a correction for 20 15? pull back of 10% or more in the marke markets. >> i read we had six year of up years in market, never seven. wouldn't surprise me to see a correction. that's not a bad thing, and i do think people are generally bullish even if you have a correction. that's a good opportunity to get into the market. >> well, what we had in the panic of october last year was maybe the closest we got to resembling a correction in recent years, but it was a fabulous buying opportunity. same potentially happens this year and again put your money in the united states? >> i think if you're looking around the world today and saying where do i put my money? i personally do it as i would put it in the u.s. economy. >> as europe unleashes a form of qe and we saw what happened with the asset markets in the united states with our qe? you don't think europe is a good

place to be? >> that's a valuation call, a deep value call. i think, you know, u.s. economies improving, and i think from a risk-reward perspective, the u.s. economy's the best place in the world. >> hear that? feels like maybe fred should wear a captain america hat and take away your shield. he's the new captain america. >> in padres brown and yellow. appreciate it. thank you very much. >> thank you. we'll be back. we have a lot more coming up from the td conference, right? >> yeah, and better include a bur burrito. what else is coming up? one thing mcdonalds can do to reclaim golden arches and golden touch. because mandy is in san diego, we have a school stat on san diego that you will only get here. it has to do with the stock market and their companies, and if you're from san diego, you should be as proud as the germans of 1909. we're back right after this.

ceo out, stock up, so goes mcdonalds today. ceo don thompson retiring after three years. same store sales down most of the time. now markets like the change. the stock is up right now. not a lot. but 1 -- what is that? 4.3%. there you go. for frustrated franchises and

investors, there's more to the turn around than just a ceo switch. editor and chief of the restaurant news, the problems for mcdonalds go deeper. what do you believe is the company's one or two biggest issues and problems right now? >> they have many problems, you're right, but the two biggest i see, first is their marketing message. they have a brand problem and a reputation problem that has to be fixed. i think a killer switch they need to make, though, also is technology. you know, where is that killer mcdonald's mobile app? we see the competitors rolling out platforms to order online, pay online, pick up with your phone, gps, taco bell has an app that's incredible, and mcdonalds has got to get there. >> do you think they are too big to succeed? >> too big? definitely not. the markets muscles, the footprint they have is important

and helps them. they have to focus on what customers want today. >> what do they want? serious. all we hear about people cheese healthier. >> they are. >> that's not true. jack in the box, a thousand calorie burgers are killing it and doing great. >> they are, economy poll te and panera. one thing mcdonalds can do that is successful is focus on convenience and focus on price. you are right. there's a whole sector of customers out there that want food, that's fast, and that they can access for a cheap price. >> all right. what do you think is going to happen to mcdonalds? will they be able to, as big as they are, make real change? >> i think they can. we've seen it before with mcdons. let's not forget back in 2001 and 2002, they were struggling. they put out under their former ceo jim skinner, called the plan

to win, and mcdonalds could do no wrong almost from 2003 or 2008 to 2012. they can do it again. >> all right. well, i know a lot investors hope that. thank you. >> thank you. all right. so we are now headed back out to mandy in california for your financial adviser play book after the break, but before that, a very quick pop quiz. don't be nervous. what annual al salary puts you the top 1% of earners in your state? the key states and changes, and the answers, folks, may shock and surprise you. "street signs" will be right back. impact wool exports from new zealand, textile production in spain, and the use of medical technology in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 85% of our mutual funds beat their 10-year lipper average.

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see car insurance in a whole new light. liberty mutual insurance. all right. the dow is up 123 points, down for the month, but a decent day nonetheless. the s&p 500 is also up a bit. i think the story at the end of the day today might end up being precious metals and commodities. gold is walloped. down 30 points for gold, 2.5%, and silver down nearly 7%. price of silver at 16.8 an oups.

people say gold is the inflation hedge. might be, folk, but back in history, gold would get bought when there was currency in stability. whatever currencies were volatile and flux waiting, that's when gold performs well. we had dprees, all the other problems, those settled down a bit. maybe some of the currency vehicletity, the ecb's plan, et cetera, come out of the news, gold will stalize a bit. mandy? >> okay. thank you scratch for that, brian, okay, up to date on what the markets are up to. back out to san diego as the conference, and now this is, of course, one of the biggest places for investment advisers, so i got ie long a couple advisers, pluck them from the crowd, and we have the ceo of castle wept management, and david nelson, a regular on "street sign," but it's nice out here. let's be honest. it could bucket down with rain any minute. >> looks dark. >> hang on, okay, guys.

a moment ago, we talked with fred, and he said the united states from an equity standpoint is still the best place to be, do you agree, david? >> it's a good place to be, but, you know, notice what happened last week. there was a monster break out in the dax last week, and i think it's time for investors to maybe look overseas. think about it. even though the fundamentalins e better here, years ago, the united states, the fundamentals did not support the bull market. the fact there's stimulus may give legs to the run. you have to go in on a currency hedge basis because the rising dollar's going to wipe out returns if you don't do something about it. >> sure those people over in the euro zone are loving it, right? isn't this part of the ecb's plan to weaken the euro and one hopes to stipulate the economy? >> helps in the same way had helped us. brian's point talking about gold, you know, it's pointing to the fact there is still a lack of inflation, probably relay more to currency. >> do you agree the u.s. is the

best place tab if. >> i think it is the best place. we'll have head winds from a stronger dollar, and i think if you ask what's the target for the s&p 500, i think that's less important because it really needs to be a stock pickers' market. you have to be surgical. you have understand and buy companies, small to mid-size companies, we think, will do a lot bet e and they are going to grow faster than the general economy, earnings estimates continue to come down, and we have guidance coming down, and, you know, this dollar is not fully been felt yet, the strengthening dollar. stay in the u.s. lower interest rates, lower energy prices are going to become are a trail. >> it's not the only game in town. it's been the only game in town for a long time, but i like the fact you go surgical right now. the fact the fed is moving out of the picture and stepping to the sidelines is going to make it a lot easier place and easier place to manage money for stock pickers like myself. >> i don't think that'll happen. i think the fed is not going to be out of the picture.

they can't -- >> but the stimulus is already stopped. >> the rest of the world is way too sick and -- >> they may not be raising interesting rates, but quantitative easing is over. >> it is. >> that is gone. that is gone. they don't have a reason to raise rates. >> talk about qe35, i mean, the -- >> can we -- >> i never read the book, but we're basically dealing in a massive ponzi scheme. there's liquidity out there. we're fighting deflation. i get that. >> right. >> ponzi? >> ponzi scheme is too far. >> it's a big word. >> go ahead. >> well, look, a lot of the liquidity that the fed put into the system never made its way into the economy because a lot of the money went to the banks who put it back on the feds's balance sheet in the form of deposits.

it's not called a ponzi scheme, you can argue, but that's too far. >> let's back up for two seconds. you said it's not important to focus on targets for the s&p, but a stock picker, right? david, you're sticking with 2250? you went into the year with that, sticking with it, and other people slash their targets. >> i might have to cut mine as well. targets are based on earnings estimates, and the truth is since the start of the year, it came down. into the year, estimates was 118, down to about 115, and 5 lot of that is oil which, on the backside of that, we get good benefits from that, but for now, i have not done it yet, but i'm cognizant of the estimates coming in. >> absolutely. >> for people to be successful, they get caught up in what dave or i say here, in, in fact, the markets are relocations centers, relocating from the patient to the party, and the plan is to have a plan and stick with it to figure out allocations.

if you try to adjust what's going on short term, i grew up on a farm. it's like planning the crop, running out the next morning saying nothing's growing. >> it's not grown. >> i don't want to tear it up and start over. be careful. try to take health care and mobility and theme and some of the -- feed the world themes, some of the longer term themes to get away what's happening. >> ride out the noise and breaking news. >> absolutely. >> there's a new cycle of 24/7 now. >> we have to be aware of potential draw downs, and increasingly, advisers have to be tactical. phrases like in it to win it or long term investing works great until the retirement account is down 30% and you got the gold watch. i think that's what this conference is about. we're talking about new ways to manage money and get tactical and use technology out there, and that's what we are -- >> all of the stats show whether it's studies, people do not do well in the investments they are in because they don't give thought going in.

don't buy it and forget it. >> i'm -- >> don't jump around and have a short term view because -- >> strategy that -- >> buy and hold works is what you're saying? >> i disagree. >> buy, hold, and monitor what you have. ask the question every day, is my thesis still in place, but then don't react to the emotion of the market. >> david? >> i think you need a rules based approach. i think if you sit in front of the tape trying to make subjective decisions, that's not going to work, but for managing with a rules based approach for tactical allocations -- >> you can't guess anymore. if you have a tail wind, you can guess, but you don't have the luxury of guessing. >> i hope we're not guessing. >> makes guys like you valuable. >> i agree with that. >> yes. >> you would never disagree with that, i'm sure. ron, david, great to talk to you. thank you so much for stopping by. >> thank you. a very interesting conversation there, and i want to add what i notice is the

environment is so unforgiving, less forgiving than it used to be, right? you know, a company misses or a company gives weak guidance, and they are absolutely decimated. they are taken back out to the wood shed. it's an interesting investment environment and makes advisers like ron and david so much more valuable, wouldn't you say? >> i would. it was a great discussion. i remember san diego as a happy place. here's my advice to those guys, leave the set, and walk down to one of the boats bind you, and get on the boat, make sure they know the owner, have a drink, and hug it out. >> i think that's a fantastic idea. what do you reckon, boys? go on a boat with a couple drinks? >> i think we're saying the same things in different approaches. >> i'm sure they are the best of friends bhiepehind the scenes. back to you. >> yeah, and you're in the only place in san diego where anybody is wearing a necktie. thank you very much. see you in a bit. >> yeah, what's wrong with you?

>> exactly. the perfect stock call today has to do with both san diego and australia. plus, the biggest earnings day of the year. we got two names to watch coming up, and yesterday, on the show, we sort of predicted this about oil. listen. i think what you'll see, and, again, reporting talking to people out in the field is you see more and more capital spending cuts. >> well, unfortunately looks like we were right. the news on just that coming up after the break.

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all right, a different day, but the same story yet again with oil. we had another new low earlier today. we're at $43.58 per barrel. we told you yesterday we had nearly a 9 billion inventory jump. too much supply driving the prices of anything down. i don't care what the commodity is. rolling on it here in the 44s, but hit 43.58 today. falling oil prices may not be great for everyone. in fact, it could be a net negative for the economy. listen to what we talked about

yesterday on "street signs." >> most of my sources saying, listen, we're going to get a sec round so i wonder when we get earnings coming out. a lot roll out on the show "fast money", and we'll see a round of spending cuts coming quick. i hope now, but sounds like we are. >> unfortunately, the sources were indeed correct. cono conocophillips spending less than predicted. this would be the second capital spending cut, and royal dutch trimmed spending by $15 billion in three years. that's billions not going in the economy, not going to service provide providers, not trickling downstream and upstream oil industries et cetera. expect more capital spending cuts. this time i suspect from the service providers. well, i'm joining you again today for something we do every day here on "street signs," it's street talk, calls and stocks to know about today. some moving, some are not.

let's catch up, first is san diego based qualcom. fun for today. >> and the australia angle. fits mandy because the bank based in sidney new south wales cut their target to 68, northland securities, by the way, downgrades the worst performer over the past few months in the san diego metro index, which, by the way, we'll get to later on in the show. >> down 11%. dream works, dream or not to dream. >> yeah, this is a stock where there's such a difference of opinion you wonder if people are looking at the same stuff. monday, rich greenfield said no reason to own the stock. he was concerned about them going basically insolvent in a few years. today, piper jaffery was overweight saying they are overdone. the target the 26, 40% upside. are they looking at the same

stuff? >> split opinion? >> who is the true national football champion? >> undisputed. >> who beat ohio state? are we actually the national champions? >> no, no, no. >> kidding. >> this fight could go on for years and years. >> been waiting to say that to you. >> number three, the stock up 44%, much better than the last one. >> but maxim group says the run might be done. cutting from a hold to a buy, this comes after the company releases results, and now analysts say, oh, maybe take money off the table. >> may not be sunny in san diego, but sun eddyson getting a rating. added to top picks at fbr capital, target on suni is 28. that's about 45%. they are bullish on sun edison.

>> this is office based furniture. >> silent k. i think we have herman miller here. people, the viewers, if they are watching in the office are sitting on a knoll chair. up from a buy to a hold. their target is 23, about 15% upside, four analysts, 23 is the price target. as we say in the business, everyone bullish on knoll. >> i'm joking on the silent k. >> i'm sure. you went to the university of miami of ohio. >> you don't have to say ohio. >> you have to wear khakis? >> you look nice all the time. >> thank you very much. >> thank you. >> appreciate it. let's go now to the earnings squad. melissa? >> welcome to the earnings squad, joined by the co-anchor of "squawk alley," and the fast money half hour for trader.

let's get to the score card here. 39 % of the firms reporting, 73%ed above estimates, 9% met estimates, and we got a couple big reports, interesting because both of these are sort of tied with the theme of stocks that have not done well where expenses are in focus. kicking off with google. what are you looking for? there's a lot of skepticism on this. >> yes, for both companies, stated earnings per share is not as important as the mix of revenue particularly in google's case. google did a good job of branching out from search and getting into android. question is, can any of the other initiatives bear fruit like the driverless car? that's the most obvious example, not that we expect that to hit, but can they put a third piston in their engine is the question for me. >> yeah, and cap x looking at that for the first nine months of the year. 7.4 billion is a lot compared to

the prior nine months. it was somewhere along the lines of $5 billion. there's a huge increase there thanks to things like the driverless car, but at the same time, what is revenue growth in the third quarter? posting growth below 20% for the first time in nearly five years. investors say, you know what? they are spending, spending, spending for theoretically a growth company where we are not seeing that expected revenue growth. >> you can see, even today facebook had amazing growth, but it was the spending that got people a little bit depressed about it. the stock has been bumpy up and down around flat for the day. >> costs per click, a metric, of course, for the past three quarters that has been flat. can we see the increase and total paid clicks is falling. what traction will we see in terms of the monitorization of mobile, right? that's a big theme. >> i just want to talk about cap x for a second. >> sure, yeah. >> ringing our hands today about the cap x cut in the oil sector, and here we are in the

technology sector hoping they cut cap x, right? look at amazon or google as you pointed out, they put so much money into their investments that you wonder, what would their earnings be like if they turned off the cap x? maybe they would look like a microsoft with windows a few years ago. not yesterday, but a few years ago when they minted money from this. >> let's talk about amazon because that's the other one after the bell. third quarter, last quarter was actually the worst quarterly report, quarterly loss reported in 14 years. so the bar to the ground. >> did they lower it enough in q3 giving guidance? people hoped they would guide to 31 billion quarter. that's not where they guided, but below that. the street is looking for 29.67 billion, and profit of 17 cents. on the guidance, this is key given how much of amazon's growth is overseas. there is some, and given how we saw ebay run into currency issues with third party sellers,

and they are big part of the amazon story. factor in currencies, what investors expect is still near the high end of where amazon guided. that makes this interesting. the media line where growth was weak in q3 is particularly one to watch. amazon said the hardware strategy is supposed to show up on that media line given how well apple has done in the holiday quarter. you wonder if amazon's hardware did well enough to boost it up. >> it's the conference call, the stock moves a move in the session, and people want to hear jeff besos again affirm they will evaluate investments how they spend money very, very carefully. so far there's no -- they bought twitch for a billion dollars, and then the content spin, and so what kind of results are we seeing for that level of spending? >> movie studios are not cheap. >> we're not going to see the slow down in spending, because

this is a man with a vision who wants to keep spending. >> the controlling shareholder. >> and the investor who could time taking content and technology spending down from 10% of sales to say 5% of the sales, that investor's going to make a lot of money. it's not analyzable or knowable, but if you have a feeling, you'll make a lot of money. >> 18%, i don't know that he'll control it. >> one of the largest shareholders. >> with a big smile. >> and a great laugh. tonight at 5:00, full coverage of the conference calls, traders trade the action in that hour. back to you. >> guys, thank you very much. let's get to julia in los angeles for market flash. julia? >> changing the definition of broadband up 4 megabits per sepgd seconds. whether this impacts acquisitions and under the new definition, more than half of u.s. households have a single

broadband option, according to the ntia report. comcast said the new speed threshold has no material impact on competition, and time warner cable shares down more than 1%, but this is not moving other broadband providers 25 megabits is a standard starting point. >> julia, thank you very much. well, you got to make about $380,000 bucks a year to make it in the top 1% of income earners nationwide, but not all states are income equal. surprising list of what it takes to make it in your state coming up. plus, mandy could not go to san diego and not stop by her greenberg house, of course, and with cameras. a segment not to miss that may or may not include her wearing pants. stick around. ca to help pay for her kids' ice time. before earning 1% cash back everywhere, every time.

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here on cnbc. one stock to look at today is coach, coh, one of its best days in a long time up 6.74%. and sales and earnings both topping expectations. still down over 12 months, but a good day nonetheless. who exactly is the 1% of income? well, it's different depending on where you live. check out this map that breaks down the 1% by state. we though that 380,000 is the nationwide average, but it differentiates gedepending wher you live. to highlight surprises, our cnbc wealth editor robert frank. good to see you. look at number one, the most expensive state is the hedge fund capital p connecticut. make $678,000 a year to get in the 1% compared to new mexico, $241,000. what else sticks out? >> well, the research was

designed to show what inequality gap. connecticut the most expensive has the biggest gap between 1% and the rest. 51 times the average income for the 1% versus the 99%. now, hawaii is the most equal state because everybody's wealthy in hawaii with 14 between the top and bottom. >> you know what's stuck out to me, and i tweeted it out last night is washington, d.c. it's not a state, but here's the thing. ask the viewers. name one company based in washington, d.c. >> amtrack. >> think about it, right? they are third. you have to make $555,000 to enter the top 1% in washington, d.c. the double ls, the lobbyists and lawyers are doing pritd well. >> usa, inc. i looked at history, how has this changed? states that increased the most. california and new york, not much change on inflation adjusted -- >> always been wealthy. >> always 47 for california, and

that's the sap since 1999. the big states? energy states, north dakota, 83% increase to 502,000. >> isn't that amazing? enter the top 1% in narkz, you have to make 502,000 because of the oil. >> that's changed. it's doubled, and the other state with a big increase, d.c. that's up 33 %, that number. rest of the country outside of energy and government has kind of stayed flat. >> interesting about d.c., my parents, grew up in california, but lived an hour and a half west of washington, d.c. you wonder if the money came because the population grew or the population grew because the money was there. >> three of the top five affluent neighborhoods in america are around d.c., virginia and maryland, three of the top five. so it's more than wall street or silicon valley.

the wealth creation, the wealth center in america is d.c. >> yeah. >> you can say new york, okay, wall street, connecticut, hedge funds, california, technology and movies. >> right. >> when you say washington, d.c., what do you think? >> government. >> there you go. lawyers and lobbyists. k street, baby. thank you very much. >> thank you. >> next, back to california, and mandy is with herb greenberg talking fast food to pantsgate. that's coming up when "street sig signs" returns. ... ahhh-ahhhhhh. liberate your spine... ahhh-ahhhhhh...aflac! and reach, toes blossoming... not that great at yoga. yeah, but when i slipped a disk he paid my claim in just four days. ahh! four days? yep. see why speed matters, at aflac.com.

jerry rice here with 8 year old andrew hunter debating who will win the big race between the tortoise and the hare. what do you think andrew? rabbits are faster. it's not a rabbit, it's a hare. what's the difference? maybe figure that out before debating the best wide reciever of all time. wait, are you odell beckham jr.?

welcome back, everybody, and if you have just tuned in, you're probably thinking, hang on, that's not new jersey. there's no snow, no slush, no skiing outfits. no, we're in san diego, and i'm joined now by none other than herb greenberg. you left us, moved to san diego, and i really have no idea why drivie ining around the beach f with you yesterday. let's talk about the leadership change at the top of mcdonalds. i'm wonds wondering, do you thi

anyone could have done a better job? handed a bad hand here? >> i'm of the opinion he was handed a bad hand. it was very difficult. no matter what anyone did because of everything we heard is people have been hashing this out for months, actually, is that the businesses change. the world changed. mcdonalds has become stale in many ways. you talk about in and out bur r burgers here. they can't be that, that's impossible, but there's smaller competitors in southern california, there's one, and people think i'm saying the habit, it's not the habit. it's a 12 chain restaurant called the burger lounge which is in san diego and other places. a lot of people flock to that as another new model with high quality. look, they have to simplify themselves. a san diego restaurant consultant will tell you, spend a ton on cap x to get the back enof the house in order, and it's going to take a while, but it's a great brand, and that's the part.

it's still a great brand. they can reset the clock on this thing. everybody knows the situation and get themselves back to basics if, indeed, that is possible and consumers go back to that. >> to flip the question around, and brian, around. quickly, herb, how much of this do you think was don thompson's fault then? >> i don't know how much was his fault, in the sense that it was a question of his ability to maneuver properly. you know, he was trying to get the coffee in the stores. did it work? did it really make a difference? you know -- look, execution, in the end a good ceo can lead people. his relationship with the franchisee was important. it seemed to be a mess. but they were in a tough part. he came after a really great leader. cramer always talking about first year after -- well, this is three years after, it's tough. >> and the stock has really not moved over those three years. brian, over the o you. >> i'm wondering if you think mcdonald's needs to go on the

offensive. they've got these really nice ads running. if you go the mcdonald's.com, it's "our story." but carls junior right now says buttery jack. it's all about butter and grease -- does mcdonald's need to stop pretending like we're nice people. like, let's just make good food that is rich and creamy and delicious and maybe it's not the healthiest, but man it sure tastes good. and i'm not going to apologize for it. >> brian -- brian, also, consistency and speed. remember, years ago, when we used to go there, you knew, even like an in-n-out burger, you would wait 15 minutes to get served, you would get into a mcdonald's, you would get it, it would taste good, before they started taking ingredients out of the buns, in the last go-round when they started having problems. that's what they've got to get themselves back to. >> sorry, brian, i thought you were going to jump in. >> maybe that's the problem, there are too many other good

alternatives. like in-n-on skin-n-out burger, burger, whatever it might be, herb. >> and this is a complete -- go ahead. >> no, i'm zipping it. okay, they're yelling at me to talk, which is they're normally telling me to shut up. >> we've built these stock indexes on "street signs." 29 metro area indexes. san diego stocks, there's 12 stocks in every one of our 29 metro indexes. san diego, guys, by far and away, the best performer over the past four months. the average return, over 17%. but neurocine biosciences up 8.5%, halozyme up. herb greenberg, are you taking personal credit for this? >> that's right. >> since you moved here, those stocks have gone up. >> ironically, biotech is the one area i specifically do not cover, do not want to cover. because we understand -- what's

interesting about this, it is all about the biotech. and that index is doing so well, even though the biggest of all the big san diego stars, qualcomm, has really just sort of, you know, become less of what it was in the stock market's eyes. so i think that really -- look, we're in a biotech bubble. we get that. neurocrine, that was all in the past month. so, you know wooe, we'll have t how this index does if there's some deflation in the biotech balloon. >> and these are fantastic stats, fantastic to lay it out that way, tells a really fantastic story, but what also tells a really fantastic story is just you and i got in your car yesterday, the herbmobile, and drove around san diego, particularly around your area, and you were pointing out, there's a new development. those particular houses over there, they're like $2 million to $3 million. those are $3 million to $4 million. how much of that do you think the boom in the housing prices, in particular, is thanks to the biotech industry? >> i think tremendously. the number of engineers that are hired here, from all around the

world. that come in here, want their kids to be in the top schools. if you look in the area of the carmel valley, which has the top schools, two very good high schools, prices there are just astronomical, for what you would think you were getting in an area where some people would say, no, they're just a lot of tract homes, no, they're a lot of expensive tract homes. >> goodness me, there's construction right now, talking over construction behind us, if anyone can hear that. one of the reasons we were driving around, we were taking a visit to your house yesterday. sit tight, everybody, you too, brian, because we have a very special tribute to herb, sort of like "a day in the life of" when "street signs" returns. stick around. push your enterprise and you can move the world. ♪ but to get from the old way to the new, you'll need the right it infrastructure.

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global economy. it's just one reason over 85% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing. so herb, it's been a little over a year since you moved out here to the west coast and san diego. and when you look at all the snowstorms going on in the northeast, i really just do not understand why you decided to make that switch. >> how does the beautiful -- >> oh, don't make us cry. that was so mean. that was a mean and low blow. >> and you're looking out here on the beautiful vista. there's bill gates' home in the distance. and who's your little watchdog? >> this is gatsby. >> do you remember the time he was barking on air. >> yes, i do. >> i would not -- >> who is that? >> that is my dog, gatsby. that is my dog, gatsby. >> and by the way, folks here, listening and watching at home. let's pan down to prove to you

that, yes, herb does really wear pants. remember that moment where you panned down, you were trying to work the camera. whoops, whoops! >> my eyes are stinging. >> i can't walk and chew gum at the same time, let alone run this thing. >> and you know what, herb, that has actually become pantsgate. >> it is the one thing people know me for anywhere, is that video. >> i know, you're quite famous. because there was so much more that we did yesterday, by the way. we spent like hours together and we condensed down there to about like 1 minute of video. but we went out to delmar, a beautiful oceanfront there and literally got out of the car. and a guy goes, holy [ bleep ], it's herb greenberg! you were like swamped by this guy. you're a real celebrity out there. >> it's the only place anyone ever recognizes me in san diego. >> herb -- i mean, brian, i'm so sorry you weren't there to see herb's house. we walked around, he lives in a beautiful house, and honestly, i

can totally understand why he has left the snowy northeast to make a life for himself out here. >> as somebody who grew up in san diego, i'm wondering why my parents left san diego to move east. oh, yeah, the housing bubble collapsed and we had to move because we had no money. and herb, i hope you're wrong about the biotech king. >> yes. >> so am i! so am i, for my own good and the value of my home, brian. >> yeah, tell phil mickelson we say hello. >> yeah, i bet you have bill gates and jenny craig and all the other people who live in your neighborhood? >> they live in the house on top of the plantation. >> yeah, really. anyway, great to see you here in your natural habitat, if you like. okay, brian, back over to you in englewood clifs. and i'll be getting on a plane straight after this show and i'll be joining you in that windowless studio tomorrow. >> mandy, great stuff. safe travels. herb greenberg, good "seeing you" as well. see you soon. let's wrap it up and see what these markets are doing.

right now, we're up 149, nice rally on the dow but still down for the month. gold may be the big story. it is down 30 dollars an ounce. oil. "closing bell" starts right now. i'll see you tomorrow. yes, welcome to the "closing bell," everybody. i'm kelly evans, down here at the new york stock exchange. >> i'm scott wapner in today for bill griffeth. it is a market that's lost nearly 500 points in the past couple of days. trying to get some of that back today. and how about a nice little ramp-up into the end of the day. >> it was the time you entered the building, scott. >> i'm told it's just a coincidence, but i'll take it. i should come around here more often. >> we're keeping an eye on what might have been moving stocks higher here. now many of the dow components in the green. earlier, it was only because of mcdonald's and boeing's outperformance that the