he could get through the fight. >> a couple in las vegas filed a lawsuit seeking class-action status which would include people like me against pacquiao after they shelled out money for pay per view. mayweather says he's -- >> is there a preshow medical form? punch me any time. >> you've got it. we have to go ahead to "power lunch." "closing bell" starts right now. more on crm. welcome to the "closing bell," i'm sara eisen here at the new york stock exchange. >> i'm scott wapner. red arrows across the board on wall street today following mixed economic data in the united states and the ongoing greek debt drama. >> just one of the reason that people are pointing to the biotechs index is dragging down the nasdaq which is the worst performing of the major averages. biotechs have been hard lately. the question is is it time to

get out of this once hot group or a buying opportunity? we ask it every time it sells off. >> panera bread getting rid of more than 150 artificial ingredients in its food. will this move force the company to raise prices? ceo and co-founder ron shaich joins us in a first on cnbc interview. >> let's take a look at the market action right now. red arrows across the screen. s&p down more than 1%. the dow down more than 150 points. the nasdaq down 1.5%. clearly stocks have broken the two-day winning streak. >> i want to take you to a live shot of post six on the floor of the new york stock exchange. there's can kenny polcari. you have a sizable crowd developing there. that's where salesforce trades.

there was a rumor in the market for the last week or so. people speculated on names like microsoft, oracle and ibm. jim cramer said at the time this was all going down it's got to be microsoft, it's got to be microsoft. >> if it was oracle it wouldn't be a good fit. culturally there was a difference between those two. we knew it had to be something big with the amount of fire power that could handle this multibillion dollar deal which could be north of $50 billion if it ever did happen. >> we'll get a reporter in the midst of that mix over there right now. you can hear behind us a boisterous crowd as they're screaming prices of sales force. >> what was that? >> i think we have josh lipton with us live with a little more color on salesforce.com. josh? >> i heard you talking about microsoft. according to the bloomberg reports said to be weighing a bid for salesforce.com. this is not the same company.

it was not microsoft that made these initial offers. that's what we're learning. remember, of course we had this news last week some arguing when they first heard about this that microsoft did make some sense. i was at the microsoft developers conference. marc benioff in the audience listening to nadella's keynote. we also know nadella has made cloud front and foulke kus part of microsoft's strategy. it's on a $6 billion run rate. interesting news here guys. back to you. >> no doubt. there was talk about the size of a potential deal that it would be the biggest technology deal of not only this year but i believe in some time maybe in the lives of salesforce. people were throwing around a 50

billion, $60 billion number at the time. the stock has resumed trading now after that halt. it is up by 5%. >> josh are you still with us? there are only a handful as we've been reporting, of companies that could actually make this deal happen. oracle was one of them microsoft was another name that came up. just in terms of the sheer size. >> yes, you were looking, according to analysts at evercore, they crunched the numbers, you were looking at anywhere between 55 billion, maybe as high as 64 billion. to your point, sara there are very few companies that could do that kind of deal. oracle was a name that was put out there. if ellison's company made that deal, they could be king of the cloud. it was tough for me to see that. i'm thinking of the most kind way to put the relationship between ellison and benioff. it's colorful. those two constantly go after each other. >> there's a history. >> certainly a rich history. ibm was another one you heard

about. ibm certain challenges there, especially when it comes to dollars and cents, ibm has 25 billion in cash on the balance sheet, 35 billion long-term debt. microsoft is a name analysts quickly started talking about. >> thank you so much josh lipton. we'll stay on top of this story. any more developments we'll gef get them to you as soon as possible. the crowd over there is gone. salesforce has resumed trading. >> a little drama. >> just a little to start the show. >> less than when the first reports hit and it was like chaos. >> a mad house down here. let's do our "closing bell" exchange. >> okay. now i'm told we have dan ives on the phone. >> yes i'm here. >> hey, dan, does this make sense if it is in fact microsoft? >> this makes perfect sense. that little da needs to make an guessive move on the cloud. this is really where he's bet

the next five to ten years for microsoft. i would view microsoft or salesforce as checking all the boxes, making a ton of strategic sense. continue to think oracle is involved here where this also would fit in in terms of their strategy on the cloud. this should be nadella's stamp on the cloud side in terms of going after salesforce. >> how do you even big -- first of all, the price is steep. it would be steep. it would be a ginormous deal. how do you contemplate integrating a company with at least 16,000 employees into microsoft? >> yes, but salesforce is its own machine at this point. i would kind of view it as being run as part of the cloud business. if i look at microsoft and the direction they're heading, they needed to make a big move. this is one that would fit that strategy. i'm not worried about integration given that i see minimal overlap.

in terms of the price paid microsoft has an option here do they buy a country or do they buy a company? they have so much cash and they need to make the aggressive move, especially with others looking at salesforce. they cannot stand by. i view this as a golden opportunity for nadella. i think this just shows it's not microsoft, it's aggressive and they need to make a move in the cloud. this would fit like a glove in our opinion. >> ellison and benioff have sparred publicly over the last couple of years. if it is microsoft, what would it mean to oh,le? what would oracle have to do in response if this was in fact what actually happened? >> yes. if microsoft buys salesforce, it would be a major black eye to oracle given where they're going. salesforce resides on an oracle

database. this would be a step back for oracle in our opinion. which makes us believe this is a game of high stakes poker. they cannot let salesforce go to microsoft without a fight. i think this is in the first, second inning of playing out. our view is salesforce does become not just an acquisition candidate, i view this as the real deal. there is smoke and fire. given where they are, microsoft needs to make the aggressive move here and this is it. >> microsoft shares are under a little pressure. nothing dramatic. they're down a little more than 1% if that's any judgment of what investors think with it. you mentioned oracle, scott. what about google? what about amazon? they have been pouring a lot of money into cloud as a growth business, something investors like. >> yes, view amazons athe number three there.

i say sap out, ibm out, google is a long shot. amazon, given aws, where it would fit with benioff in that sort of strategy their focus on the cloud, the fourth biggest software company if it went in there. amazon is the other potential one we could see here with oracle and microsoft being much more front and center in terms of where it would fit strategically in that cloud vision. >> the most important word out of this whole report is mulling. it's important to underscore that because the same report says that there are no talks ongoing and that nothing at all is imminent. so, you know maybe we're putting the cart before the horse so to speak and maybe this is not as close as the market would like to believe, at least investors who are piling into salesforce with the stock up 5%. >> it's a good point but the one thing i will say is just like lebron wasn't going back to the

cavs, in terms of the denials the last week we viewed it as noise, ultimately i give you it that there needs to be a big move made. when we look at the cloud, the golden goose is salesforce. that's why i think all these other large tech players, microsoft, oracle amazon they're seriously considering this as -- it would be competitive. if salesforce goes to anyone the other one loses and it would take a huge step back on their vision on the cloud. >> speculation is heating up. that's for sure. danives ives, thanks for jumping on the line for this breaking news. salesforce.com up a little less than 5%. >> we have stacey wu rob morgan and our own rick santelli. it's great to have everybody with us today. let me ask you first, rob.

just moving beyond the reports of this why is the market down in the manner that it is today? >> i think the reason for that scott, is tied to salesforce. we had basically a good labor component of the ism services report, made people feel like rates would go up sooner. it's one of those good news is bad news type things. we'll see more deals like this because money is cheap right now. people are realizing the urgency that money will not be cheap for that much longer. >> are rates going up too fast? are they scaring people? >> i think it's definitely knocking people off the fence, let's put it that way. the fed is going to be very strategic about this. we're not going to see -- >> rick santelli out in chicago, you are with us breaking that ism services number. thatple comes after what we saw in the trade deficiting with, biggest trade gap in 20 years. is it really all the rate story on better economic news?

>> well i really do think a good chunk of today's ak in the equity markets was further by the notion of rates moving higher. today is going to be very significant. we said last year 217. this could be the third settlement above that level all years. in terms of speed, there was five weeks between january 30th and march 6th when we went from the low at 1.64 to the high yield of the year 2.24. in terms of speed, that's not the issue. really what most traders are most nervous about is how quickly portugal italy, france spain, how their rates reversed out all the goodwill leading up to quantitative easing and the disappointing performance after it was actually implemented. and it also makes this friday's jobs report that much more important, because if you look at the only two closes thus far, above that settlement to 2.17 they were on friday that we had the 295,000 jobs number on march

6th and the following monday we settle at 2.19. after that we went into a 30 session, tight range. it just makes the data from employment that much more important if rates will continue this move. >> i agree with rick. i personally think that rates are the story right now in the market, that all the talk about the dollar and the euro yes, it's important but now it feels like rates and where they're going to go higher have eclipsed that a bit. we spoke exclusively with jeffrey gundlock yesterday. i want you to hear what the double line ceo and founder had to say. we'll react to it on the other side. >> when i look at kind of the trading pattern of the market it does look to me like the odds are better that rates really bottom in july of 2012. two-year bottom 2011. the rest of the curve are the 30-year bottom july of '12. i got lucky and made that call one week before it happened. >> so the point being from gundlock is that rates have

bottomed. >> you know jeff well. eve talked to him a number of times as well. you follow the fixed income market as closely as anybody. >> what you're seeing in the action would confirm that. two-month high on treasury yield. jeffrey has gotten that bond call right as you mentioned a number of times. are you worried about higher interest rates? is that what explains what you're seeing in the small caps? the yew tills are the worst performing s&p group. >> we're seeing the higher rate trade. banks are outperforming which is not normally what you'd like to see when the dow is down 150 points. there's a european component here. treasuries haven't been trading solely off of u.s. fundamentals for over a year. so as we see inflation bottom in europe, that's starting to reverse some of the money flow that came in from europe out of treasuries and that's compounding things. german bunds are a leading indicator of treasuries going forward. >> when you look at the market amy, what do you make of it not

only what we're talking about here with rates but if rates start moving higher can stocks continue to go up? >> well from an options perspective you're seeing a lot of this reflectioned. you're tacking about utilities earlier. we're seeing a lot of downside puts being bought in xlu. the utilities etf, which my guess is is related to the rates concern. on the flip side ahead of payrolls we're seeing bullish positioning in iwm and the russell and the small caps saying they're anticipating something positive coming out this coming week and for next week as well. >> rob? >> yes, scott, i mean i think it's important to note that at the end of a bull mark net stocks, stocks usually rise well into when the fed starts raising rates. we haven't gotten to that irrational exuberance phase yet. you asked the question a minute ago, can stocks go up in the face of rising rates? historically they have. i believe they will this time,

too. >> everybody, thank you so much. >> that's a good long-term perspective there as well. >> less than 45 minutes to go before the closing bell. we are seeing red across the screen with the dow down 142 points, just off the lows still under pressure. s&p down more than 1% and the nasdaq bringing up the rear, down nearly 1.5%. up next move over nordstrom rack macy's is muscling into the discount space with test stores slated to open this fall. will macy's backstage as they'll be called be upstaged by more entrenchd players such as tj maxx? the pros hash that out. >> mylan, electronic arts news corp. and groupon reporting. we'll have instant analysis. we'll be right back on "closing bell."

seven out of ten power outages in the us are caused by weather. but utilities can now predict where the power will go out, within a few city blocks.

working with ibm they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day.

well it was just a day ago that the s&p was flirting with a record high. not the case today. here we go with the nasdaq 100 heat map. it is almost all red as you can see. as for the dow, the dow is down 150 points. maybe it's rising rates today.

2.18 on ten-year. maybe it's some concerns about greece. maybe it's oil prices getting over 60 bucks, mortgage rates creeping up. a lot for investors. >> maybe it was the fact that it was negative growth in the first quarter. >> trade data was weak. ism nonmanufacturing was strong. >> there's a lot of -- >> make of it what you will. >> art cashin came over here and told us the real selling us is happening in the small caps. tracking specific movers in the final hour of trading. dom? >> you're telling me there are cross-currents in the marketplace, all kinds of stuff going on these days. the movers are listed individually here. it was a prior outperform. they've more than doubled their price target to $722 a share. earnings potential based on a growing portfolio of original content. those shares up by 2%. on the earnings front, sprint

saw a loss of $224 million in its fiscal fourth quarter due to heavy spending on advertising and promotion. those shares down by 4%. then in retail macy's testing a so-called off-price store business concept with four pilot locations in the new york city area. they're going to be called macy's backstage. the stores will sell clearance goods from macy's stores and discounted items from other fashion brands. merchandise will be 20% to 80% off retail prices. you can see those shares down by 1%. still an interesting concept. mace says getting into the offprice like nordstrom rack saks off fifth. >> the question is what took so long? i like this story, macy's backstage, four off-priced stores set to open this fall in select new york locations. the pilot stores will include clearance items as well as free wi-fi and more spacious fitting rooms. >> okay. for more on, if this strategy

will pay off for the retail joint, let's bring in cnbc retail analyst, stacey widlitz and james romelli. >> look at nordstrom rack. a more premium brand, nordstrom. off fifth, saks is a more premium brand. aren't things on sale at macy's or lower priced? >> well scott you hit it on the head. that's the big question mark here, yes, macy's does need to do something to get its top line growing, but they are not really a luxury -- a department store that's going to be able to have the duo brands offprice and full price. i think what they're going for here is they're going to be more of a tj maxx. the question is macy's is always on sale. they always lead black friday first. how different is this off price really going to look versus

their full-line brand? >> i'm wondering about the name, actually. macy's back stage. does it cheapen the brand at all or the brand perception or is it a positive using the macy's name? >> well i think it's a positive using the mazee inging the macy's name. they're trying to draw in a new consumer but get current consumers to crush up a little bit, maybe lower income consumer that shops a little bit at macy's that might be more inclined to identify with the brand and expand their cart online at both brands. what they're really trying to do is capture the entry-level consumer all the way up to bloomingdale's and casting a wider net. >> where does this leave jcpenney stacey? >> you know i think macy's going into this business you can never underestimate macy's here. so they are testing this. they will get it right.

if history tells us anything about terry lundgren and his execution, it's a risk for everybody, for tj maxx and ross stores and for jcpenney anybody who's in the apparel space, the home space for that low-end consumer. >> bottom line what do investors make of this? investors who have liked terry lundgren's style and macy's and how it's dealing with the restructuring and challenged retail environment, does this move the needle at all? and can it be a growth engine for the company? >> the company did comment on last conference call that they were coming out, looking at international expansion as well as the soft price. today they made it official. the stock is flat for the year. the street's not overly excited about this. you have to consider yes, off-price has been the darling of retail for the past five years but this is a really late start here. so certainly tjx and ross stores comps are low single digits.

you're just getting into the game a little late here. that's why the street you know throw in a bit of a distraction from the full-line business and that's why the stock is flat to date. >> if they're going to be selling clothes at 80% off retail prices what is the margin on that? >> low. >> yes, it's low, yes, scott, exactly. >> i'll save you the answer. >> yes, you got it. they're buying in from vendors that are producing specific goods for the off-price channel. so whale you might think they're zero to negative they're actually made specifically for the channel. >> yes, good point, which nordstrom rack does as well. stacey widlitz, always good to get your insight. nasdaq s&p, dow, all lower. top executives from constellation brands and panera bread will be speaking with us.

we'll talk about the state of the consumer appetite for spending, where they're seeing the fastest growth and of course some of the health trends that are popping up. up next as the field of presidential candidates gets more crowded, wait till you hear who's already leading the polls. ♪ (music plays throughout) ♪ the pursuit of healthier. it begins from the second we're born. after all, healthier doesn't happen all by itself. it needs to be earned... every day... from the smallest detail to the boldest leap. healthier means using wellness to keep away illness... knowing a prescription is way more than the pills... and believing that a single life can be made better by millions of others. ♪ ♪ healthier takes somebody who can power modern health care... by connecting every single part of it. realizing cold hard data

can inspire warmth and compassion... and that when technology meets expertise... everything is possible. for as long as the world keeps on searching for healthier... we're here to make healthier happen. optum. healthier is here.

we're back another day,

another candidate jumping into the 2016 presidential race. >> john harwood has that story, plus with results of the new nbc/"wall street journal" poll showing who's leading the pack right now. john? >> exactly guys. there are six republican presidential candidates who have declared their candidacy that is. mike huckabee, the former arkansas governor jumped in today, just a day after ben carson and carly fiorina did, joining rand paul ted cruz and marco rubio. mike huckabee ran a strong campaign in 2008. he's not expected to do as well this time. if you look at our nbc/"wall street journal" poll he's at 5% tied with chris christie the governor of new jersey who's been wounded. jeb bush is leading the republican race just with 23% of the vote. marco rubio is second at 18. scott walker the governor of wisconsin is third with 14. the democratic side which only has two candidates one huge one in hillary clinton and one minor one in bernie sanders is very

stable despite the recent disclosures about hillary clinton's foundations. when we look at how democrats regard her in the race eight in ten believe she's effective at getting things done and knowledgeable and experienced enough at the job. she does have only 5 % of democrats rating her highly for being honest and straightforward. that signals a weakness for her but not one that's shaking her position in the democratic race. and finally, one thing that is helping democrats is a gradual improvement in the job approval ratings for president obama. he is now at 48% approval 47% disapproval. now, it's only one point in black but it's the first time guys, in two years that more people have said they approve of the job president obama is doing than disapprove of it. that shows a slight rising tide that will benefit democrats in 2016 if it continues. >> interesting to see that improvement. thank you very much john harwood. it's time now for a "cnbc news update" with sue herera. here's what's happening at this hour.

at a rose garden ceremony this afternoon, president obama announcing his picks for chairman and vice chairman of the joint chiefs of staff. he nominated joe dunn for the top spot and general paul silva as vice-chairman. the senate committee on energy and natural resources holding a hearing this morning on the federal government's role in wildfire management. and the impact of fires on communities. they're looking for ways to prevent massive forest fires and better prepare for this year's upcoming fire season. dramatic video of a mediterranean sea rescue. it shows migrants on a sinking rubber boat trying to board a cargo ship that came to their aid. five bodies were recovered and survivors reported many others drown. the footage was obtained from the associated press from a crew member of that cargo ship. a funeral service is being held in palo alto for dave goldberg who died friday after a jim accident at a luxury beach

villa in mexico. he was the husband of facebook executive sheryl sandberg. they issued a statement extending its deepest condolences to the goldberg's family and friends as it works with local authorities. that is your cnbc update for this hour. more "closing bell" after the break. organic food stocks schwab can help. with a trading specialist just a tap away. what's on your mind lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move wherever you are. and start working on your next big idea. ♪ ♪ honey, we need to talk. 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, insured by unitedhealthcare insurance company. like all standardized medicare supplement insurance plans they help cover some of what medicare doesn't pay and could really save you in out-of-pocket medical costs. call now. with a medicare supplement plan, you'll be able to stay with your doctor. oh, you know, i love that guy. mm-hmm. [ male announcer ] these types of plans let you visit any doctor or hospital that accepts medicare patients. and there are no networks. you do your push-ups today? prepare to be amazed. [ male announcer ] don't wait. call today to request your free decision guide and find the aarp medicare supplement plan to go the distance with you. go long.

with earnings season more than three-quarters over has corporate america delivered? >> dominick which you runs through the earnings score card back at cnbc headquarters. dom? >> all right. sara, scott, they have delivered although we got to say, it's probably off lowered expectations. that low bar yes, most companies in the s&p did manage to hop right over it. we have 395 countries in the s&p 500 reporting. just about four of the five companies have reported this season. that's not counting the ones from this afternoon. 68% have beaten analyst estimates. that's a good number again, off lowered expectations. 10% have met and about one out of every five stocks have missed analyst expectations. that's how the overall earnings picture is looking right now. take a look at some of the winners in terms of earnings per share growth we knew it was going to be health care and

financials that would help lead the way higher in terms of earnings growth. health care is through that 80% move here in terms of the number of companies reporting. health care has shown 17% earnings growth. that's a good sign. they're the best performers out there. we were only expecting 7% growth at the beginning of the season. if you look at energy down 59%, that's slightly lyly better than what we were expecting. if you look at the overall sales picture, health care again, showing 10% sales growth slightly better than what we were expecting early on in the season. energy, the worst performing one, down 34% overall. remember sara, scott, the point here we were expecting at the beginning of earnings season 3% earnings declines. right now if everything works out the way it should be from expectations-wise, guys we will show about a 2% growth rate on earnings. back over to you. >> all about the expectations. thank you, dom. lagging revenues giving investors pause this earnings cycle. are u.s. equities still the biggest and best place to be

with lack of revenue growth? >> joining us now nick rate and john manley. good to have you. john, you heard dom which you go through the numbers. is the u.s. still the place to be? >> it's a place to be. i suppose europe's more of a change. that uld could be more that could be more interesting. the fed is like a big may west on the stock market. >> what if we're at the top of the cycle as some have suggested. >> this would be the weakest toppive ever saw in my life if we are. there's no vigor no signs of pricing power. >> it's one thing for the economy and the stock market to be disconnected in terms of the action but what about the stock market and earnings? the fact that we're in this earnings environment where they are not growing and half of companies are missing on revenues? how can the stock market keep going up on that? >> the earnings are the earnings where they are. sometimes the market focuses on earnings that are happening

right now, circa 2000. we get a sense this is as bad as it's going to get or close to it, we'll look out six to nine months and see better comparisons. >> nick, what's the big takeaway? yes, 68% have beaten but expectations couldn't have been lower, really, coming in. >> that's exactly right. if you took the expectations at the beginning of the year and based it on the actuals that companies were reporting with dominick reported 70% are beating. if we use the estimates at the beginning of the year only 40% of the companies would be beating. that's not enough reason to be bearish because of the way companies low ball it. the second quarter estimates, we're low going into earnings season and they're going lower. so are the third and fourth quarter numbers. the future expectations are going lower as well. combine that with the sales numbers that have been a lot of misses and we've not seen this market reset to reflect a lower growth, that is not only expected, that is actually

occurring. the earnings growth in the first quarter is about half the rate of growth as what companies reported in the fourth quarter. growth is slow. >> what if the dollar is correcting at a time when the economy could be strengthening? >> that's quite possible. a part of the weakness in first quarter numbers is because of the strength of the dollar. >> of course. >> which has been out since midmarch. that will be less of a head wind as we go forward. the reality is if the dollar weakens a little bit, the fed may raise rates. what will that do to expectations for home builders and others? also they're at the tail wind of lower energy prices never worked for helping out raising -- for the consumer disdiscretion err discretionary sector. >> john? >> i still want to own u.s. stocks. >> is this earnings dependent? >> no but they're economy

dependent. thanks to you as well john and income. 20 minutes to go before the bell rings on the floor of the new york stock exchange. the dow coming off its worst levels, still down 1.14. here's the s&p down 1%. the nasdaq is getting hit pretty hard today. back under 5,000, a loss of 1.3%. >> utilities and telecom getting slammed the hardest. up next what better way to mark sinkocinco de mayo. we'll talk about constellation, the cfo-here at the new york stock exchange. and there's music. here at the td ameritrade trader group,

they work all the time. sup jj? working hard? working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this. being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. there's some facts about seaworld

we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving. i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility to get that right. and we take it very seriously. because we love them. and we know you love them too. ♪ ♪ ♪ ♪ [ girl ] my mom, she makes underwater fans that are powered by the moon. ♪ ♪ [ birds squawking ] my mom makes airplane engines that can talk. [ birds squawking ] ♪ ♪ my mom makes hospitals you can hold in your hand. ♪ ♪ my mom

can print amazing things right from her computer. [ whirring ] [ train whistle blows ] my mom makes trains that are friends with trees. [ train whistle blows ] ♪ ♪ my mom works at ge. ♪ ♪ it issome smd. our next guest sells many of the alcoholic products that will be consumed by people today across the country.

>> he sure does. constellation brands one of the leading beer wine and spirits providers known for brands such as corona modelo. good to see you. >> good to be here. >> it's obviously a big day. how big relative to let's say, a big sporting event for example? >> cinko, we look forward to cinco de mayo. it kicks off what we call our 120 days of beer consumption in the u.s. it really gets us off can be constellation off on a positive bent because we kind of own cinco. it's a mexican holiday. we have our guys out traipsing the market throughout the united states making sure everything is going as well as we want it to. >> coca-cola considers mexican coke a high business and they call it a craft drink. what are you seeing in terms of growth rates. >> we don't consider ourselves

craft but we're amongst the growers in the beer industry. craft is a grower and ouren brads are also growers. and the beer category in general in the u.s. is kind of flat. to your other question, we're growing at a multiple of the total category. last year the beer category grew sales about 3%. we grew our sales 12%. that's quite an outperformance. >> we were just looking at video of a box of corona cans which the advertising around the bottles has been incredibly effective, obviously by virtue of the numbers you've seen. i guess it's obvious why you're doing the cans. you trail your competitors in terms of numbers. i think your competition is 12% to 18% on average can and corona, 2%. that would suggest that's an obvious place to go. do consumers want to drink corona out of a can when it's iconic with a lime in the top of

the bottle. >> we think the tune is the enormous mostly because of occasion base. there's certain places you won't bring a bottle, ball games, public holidays in parks, things like that. we think cans are perfect for that. they're lighter to carry. they're greener than bottles. you'll see the industry high-end beer is shifting over to cans from bottles. we think that's in our favor. >> what kind of number what do you think is realistic? >> generally, we're starting out very low, right? our competitors in the high end are generally 15% to 18% their sales mix is in cans. that's what we're shooting for from a very low base of 2%. >> you just announced paying a dividend. does that mean we should roll out acquisitions potentially in the wine business people are looking at? >> that's a great question sara. last year when i was on the call one of the things bill called out with you guys we didn't have a dividend.

since then we have instituted a dividend. we think that dividend has plenty of room to grow. but because both are wine and beer are such tremendous cash generators, we can buy back stock and we can do tuck in m & a, as things become available. >> where are you in the economy at large? do you feel pretty good? >> we feel very good. our products are doing very well. the wine category in general is growing 5 3rers a year. that's strong growth for a u.s. consumer product category. our beer business is growing double digits. last year it grew 12% sales. we just acquired a high-end tequila, casa noble. it goes with. >> are people still putting the corona bottles upside down in the margaritas? >> that's still a thing. >> what do you call that?

>> the 7 ounce bottles which we call the coranitas. >> you brought the mariachis, the beer. i'll take mine chilled. >> you got it. >> i'll take mine in a margarita. >> happy cinco de mayo. >> thank you. >> thanks for coming in. ten minutes to go before we ring the bell here. >> 12 minutes. >> 12 minutes. who's counting? >> scott's getting sassy. plenty more to come on the "closing bell." we have earnings mylan, electronic arts groupon, all coming your way, plus panera's ceo talking up a big menu change. investors not seeming too impressed. we also have brad garrett launching a small business in vegas. you may raise him, "everyone loves raymond." he'll be here at the new york stock exchange to explain why he's getting into business. don't touch that remote, back on "closing bell." a wandering eye. i mean, come on.

national gives me the control to choose any car in the aisle i want. i could choose you... or i could choose her if i like her more. and i do. oh, the silent treatment. real mature. so you wanna get out of here? go national. go like a pro. ♪ ♪ ♪ at chase, we celebrate small businesses every day

through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step.

the markets are down. the dow is off by 140. >> record close. >> and a bit of a reversal to

say the least. maybe there's fear about rates rising. the ten-year got up to 220 today. >> ten-month high. two-month high. excuse me. >> joining us we have kathy wood and david lafferty. is that what is going on here is it a fear of rising interest rates? >> yes i think the deflation trade looks like it might be going off at least temporarily. we've seen rates back up in europe a little bit. and that seems to be taking a little bit of the risk premium out of the market today. >> kathy, what you're seeing is these sectors get beat up like biotech. >> yes. >> and some of the higher flyers. for a long-term investor what do you do with that? it's one of the most beloved, it's where the m & a action is. >> it had been on quite a run as people were worried about european growth and as interest rates remained low.

you have a backup in interest rates, more of a cyclical tilt to the market. i think people see wage inflation now and buffett talking about the end of the bond/bull market. a lot of these things including europe coming together at the same time. >> everybody is getting negative on bonds. not to mention high yield. you have whether it's icon gun block. that's a concern that the high yield market is in their words, dangerous. >> if interest rates start going up because the fed will tighten, high yield shouldn't get destroyed. a good economy is good for high yield. >> we're still at a positive place in the earnings sike. we actually think places like high yield and bank loans to a greater degree will be more defensive when rates start to

back up. so right now, it's impossible to find yield out there anywhere for people trying to make their earnings number. you need a little bit of coupen in there. nothing in the market is cheap. across the bond market but high yield seems to be able to hold in a little bit as long as earnings keep moving up. >> oil got back above $60 a barrel, first time we've seen that since last december. we've sean a run up in energy names in april but are they still cheap? is that where the value is? especially as we start to see rotations in biotechs and some of the higher multiple names. >> i think energy is still a good place to find value. we see this in every cycle. when oil sells off dramatically the most levered players always get taken out. there's always going to be credit risk there when the price of oil falls 40%, 50%. when if you have good security

selection, there's value both on the equity and the fixed income side in energy. >> is june off the table for the fed or no? >> i don't think it's off the table because i think those -- the employment cost index rang a ball. it's up 2.6% yearover year-over-year. i think we'll start talking about shortages. >> it would take two really good employment numbers with hourly earnings gains in there. it's not off the table. it's unlikely but it's not off the table. >> all right. up next guess where i'm going? >> to the floor. >> for? >> to the mariachien bad. >> for? >> the closing countdown. >> you're good. you're good. >> then you'll be coming back here. we'll be celebrating. and we have an earnings-palooza. mylan the only gainer in terms of the earnings mix at this hour. you're watching cnbc.

stay right here on "closing bell," first in business worldwide.

♪

the network that monitors her health. the secure cloud services that store her genetic data. the servers and software on a mission to find the perfect match. and the mom who gets to hear her daughter's heart beat once again. we're helping organizations transform the way they work so they can transform the lives of the people they serve. closing countdown time. we're back down on the floor of the new york stock exchange. not a pretty picture on wall street today. you've got the dow down 136 points. really accelerating losses throughout the day. we have come off the worst levels, however. i'll call your attention to the nasdaq at the bottom. a loss of 1.5%.

below 5,000 today, the nasdaq. the most interesting story is the movement we're starting to see in interest rates. we've heard about mortgage rates creeping up. there's the ten-year. actually this is the ten knife year note yield pulling off a little bit from the highs of the day. but certainly a story today as bob pisani has been following throughout the day because the ripple effects of this on what you're watching all day, those are the stocks most sensitive. >> i'm calling a little bit of a hisscy fit. look at reits, for example, utilities. all that are getting hit right now. i want to update on salesforce. salesforce has come out said they're not commenting on rumors about any possible takeover. we were reporting about a possible story on microsoft, might be interested in it. it was halted briefly in the middle of the day. i just want to point out other stocks like net suite in that space moved on this.

they could be potential targets. oracle has a potential interest in net suite. a lot of stuff is moving around. if this interest rate story has legs, it will happen in the next few days with the nonfarm payrolls. >> second hour of the "closing bell" in five sections. i'll make my way back up there with sara. i'm sara eisen in today for kelly evans. let's take a look at how we are finishing the day on wall street. breaking that two-day winning streak. the s&p 500 settling down 25 points, more than 1%. the dow settling down 142 points and the nasdaq was the laggard pretty much all day, down at the low, 1.55%. the mariachi banned is here at the new york stock exchange performing in honor of cinco de

mayo. it's a festive day down here. joining today's panel, sharon epperson along with kayla tausche. also "fast money" trader guy adami. you're missing the fun and the music down here. tell us what happened in today's session. was it fear of higher interest rates as we saw the ten-year yield lead to a ten-month high? >> it started overnight. there's more increased fears. you made the point about our bond yields here. look at what the tlt did today, had a big flush to the downside went positive today, effect ofly closed unchanged. i think it's a big reversal. i do think rates are headed back lower and if you're looking lower, we basically touched that today. i take some encouragement out of that. i also have to point out this this is a theme i've been on for a while. the weakness in transports tonight. the iyt can't get out of its own way and the russell, the iwm to

me closed lower at a critical level of 1.21. those are things worth watching still. >> you have been on that trend of following transport which is is interesting in light of a mixed batch of economic data. you nailed that closing countdown. >> that's what i do, sara. go to the floor, talk about the market, bring in bob and then jone you ladies on the set. >> kayla? >> i think you can't ignore in the move in interest rates. i think the banking sector has been waiting for the rates to move up or the yields to move up so their business model becomes more profitable. there does seem to be a sense, sara sara, that you can't take the market on a session-by-session basis. most of the strategists have their targets for the most of this year. it did seem like we'd see a lot of volatility in between. we're getting used to that at this point. >> yes, that's a long-term view.

that's where you are, right? >> definitely looking at the long term. it feels like we're being serenaded on a down day for the market. looking at oil closing today above $66 a barrel and that what that means for gasoline prices and potential for the risk ahead, i think that's what a lot of retail investors are looking at now. prices have been rising just as we get into the summer driving season. if this continues, this is something that will take perhaps income away from those who don't have much discretionary income to put in the market. >> i thought guy was going to mention the result of the hockey game last night. >> let's talk about it right now, brother. don't start clucking about the caps. it's 2-1. if i were you i'd be happy where you are. let's go quiet into the sunset. >> okay, my man. we will see. i do want to pick up on something you said guy, you think rates will actually go

lower. >> i do. >> why do you think that? >> i've thought that for a while. i've been saying it for a long time. do i believe we're in this deflationary period. yes, oil has bounced. i think the fed showed their hand back in april. sara had a great piece on cnbc.com. they are -- they were concerned about the rally in the dollar. i think they needed to talk the dollar down which in turn i think sent interest rates back up. the tlt is something to watch closely. i do think we reverse and we are in a global deflationary environment. >> actually jeffrey gundlock in your conversation yesterday did say the fed blinked when it came to the u.s. dollar. you think it's really all about the fed and this question over whether they're going to go at all this year? whether it's going to be in june september, december later in the year? it's really going to need the

data, right? >> this uncertainty is confusing to a lot of people who want to be in the market and have been skiddish about getting in or wanting to get out. we just know that eventually it's going to happen and be prepared for the next move. >> it's perfect, right in your wheelhouse are the financials and the banks, knowing them as well as you do. rising interest rates must bring smiles to a lot of faces. certainly for investors who are waiting for something to happen. >> you know it's like a double-edge sword. on one hand the higher yields are, the more profitable it is to underwrite a loan. when the feds fund rate does finally rise their cost of capital gets more expensive. there are pros and cons to each side of the debate. when we talk about the fed and whether the debate is around the fed, we're getting a jobs number on friday. it's easy to say the fed doesn't matter but if we get a one handle on the jobs number again, that will completely change the

debate versus whether we see a three handle again. both of those scenarios have happened in the last six months. >> if we get a one handle guy adami will be right pretty quickly. i just wanted to ask you about the sell-off in biotech. we see this, it runs up it's a hot sector and then the air comes out of it. is there any indication that it could be more severe in terms of sell-off of small caps and biotech? >> i think the biotech story, the names we're talking about, the major players, those stories are absolutely still intact. what i think is going on there's a player 0 are a few players that are getting out of the etf. i do believe that the etfs are driving the individual stocks for better for worse. that can last longer than people that own the stocks want it to last. i don't think the story has been changed. i have to say something to scott. ovechkin is a stud. i don't think the -- i mean he is gordie howell on steroids. >> are you talking about hockey? >> no disagreement here.

at all. how about my boy holepy? >> he's playing out of highs mind. >> we can talk hockey for the next hour. >> no way are we going to talk hockey. >> when it comes to the markets and the valuations of the various sectors, we see a group like energy which has been so beaten up outperforming with crude oil above $60 a barrel and some of the other higher flyers utilities, telecom underperform underperformingunderperform underperforming. >> you know this is going to happen out of the momentum stocks into some of the tried and true players. when that happens, you have to be positioned in a way if you're a longer term investor so you can take advantage of the dips when they happen and the momentum when it happens. the ibb driving what's happening is something that individual investors who want exposure to

biotech should be aware of. it's still a great opportunity for them to get exposure to a variety of biotechs without taking on the risk of an individual name. >> let's not forget about some of the interesting individual stock stories that didn't get a lot of play today because the overall market was having obviously a bit of a fit. you know before we do that, there are the mylan earnings at the bottom of your screen. the biotech company is out with its numbers. meg tirrell? >> we're looking for a beat for mylan on the top line earnings coming in at 70 cents for share for adjusted eps. mylan, a miss on revenues coming in on $1.78 billion compared with estimates of $2.06 billion. the company focused on its proposed acquisition of perrigo. they have rejected overtures. on that revenue miss foreign exchange did hit revenues by $93 million in the first quarter. a beat on the bottom line and a

miss on the top there. back to you guys. >> we have another one, electronic arts ea let's send it over to kate rodgers for that alert. >> it is a beat on the top and the bottom line for ea. they are reporting eps of 39 cents a share versus estimates of 25 cents a share. on revenues 896 million versus estimates of 850 million. now, their monthly active users for mobile titles average 165 million users in the fourth quarter. they're also announcing a $1 billion stock buy back. as you can see, the stock continues to climb around 5%. back over to you. >> thank you so much kate rodgers. guy adami, reaction to mylan or ea? >> ea i think is interesting. this stock has been basically on a rocket ship for the last couple of months. i think it continues higher off of this. i think the short interest is close to 7%. they're going to get squeezed. it will push up towards 70 bucs. bucks, a level we topped out at

75 or so. >> go buy yourself an nhl '15. maybe you'll actually make it to the stanley cup finals. >> thatnk you, guy. >> i love scott. i love hockey man. >> so do people buying that video game from electronic arts. >> be sure to stick around and catch guy adami talking stocks and hockey and more at 5:00 on "fast money." he'll be asking the former s.e.c. chairman harvey pitt why the flash crash could be sooner than we think. chaipotle did away with genetically modified organisms, now panera is this about healthier eating or a marketing campaign? we talk to the ceo and co-founder ron shaich. he joins us next in a first on cnbc interview. salesforce shares surging on

a report microsoft is mulling a bid for the tech giant. is that a good fit? or is there another buyer waiting in the wings? you're watching cnbc, first in business worldwide. can it make a dentist appointment when my teeth are ready? ♪ ♪ can it tell the doctor how long you have to wear this thing? ♪ ♪ can it tell the flight attendant to please not wake me this time? ♪ ♪ the answer is yes, it can. so, the question your customers are

really asking is can your business deliver?

my name is jamir dixon and i'm a locate and mark fieldman for pg&e. most people in the community recognize the blue trucks as pg&e. my truck is something new... it's an 811 truck. when you call 811, i come out to your house and i mark out our gas lines and our electric lines to make sure that you don't hit them when you're digging. 811 is a free service. i'm passionate about it because every time i go on the street i think about my own kids. they're the reason that i want to protect our community and our environment, and if me driving a that truck means that somebody gets to go home safer, then i'll drive it every day of the week. together, we're building a better california.

let's send it over to kate rodgers now. >> that's right, a miss on the top and bottom for noodles & company, revenues 106 million versus estimates of 109 million. they're giving very weak eps growth forecasts for the year to come and projecting comp sales growth in the low single digits for 2014. the stock down 14.5% now. >> getting hit pretty hard. kate rodgers, thank you. bird flu outbreak in the u.s., this story is quickly becoming the largest in our nation's history t. is threatening to impact, breakfast, lunch and your thanksgiving dinner. >> the u.s. government is allocating another $330 million in emergency funds to the usda to deal with bird flu. that's according to reuters. that's on top of $58 million than been set aside and it's largely expected to go to

indemnity claims for farmers that have had to destroy their flocks. there's a lot of flocks including pending cases we're talking more than 25 million chickens and turkeys have now been affected. the hardest hit, egg laying hens. there were 342 million after the end of last year 6% of that supply has been taken offline. that's where prices are really going to rise. eggs anywhere from 15 cents to 25 cents depending on who you speak to. turkeys have been hit hard. the virus impacted 1.5% of the country's 238 million birds. the worry there, some young birds that would have been used to repopulate are getting infected as well. you could see that higher just in time for thanksgiving. hormel foods which has seen its own turkey supply reduced has also just announced that it will temporarily lay off 233 workers at a jenny-o turkey plant in

minnesota because of this outbreak. shares of hormel are done in part because of that news. >> morgan brennan, thanks very much on the update on bird flu. the problem facing the poultry industry may very well have an impact on restaurants including panera bread. the company is in the news as it became the first national restaurant chain to publicly post a comprehensive list of all artificial additives that it plans to remove by the end of 2016. >> let's bring in ron shaich, the ceo of panera bread. welcome back to cnbc. nice to see you today. >> great. good to see you today. >> why did you make at announcement that you did? >> it's something we've been working on for over a decade. it goes back 11 years ago when we first -- we were the first restaurant chain in the country to remove from our poultry antibiotics. it continued six years ago when we removed all nonnaturally

occurring transfats, five years ago when we were the first national chain to essentially post on our menus caloric information. a year ago we announce a new food policy. consistent with that food policy we want to remove all artificial colors, flavors, preservatives and sweeteners. it's a no-no list 150 odd ingredients which you can be assured will not be in a panera menu. >> you had to make this kind of move given what some of your competition in the fast casual space has already done. >> i wouldn't say that. listen, this is not about competition at all. this comes, something we've been working on for several years. the team working on this has been working on this for a decade. the reality my kids eat in these restaurants ten times a week. i'm in there five, ten times. it's only logical. that's what i want to do for my

guests. fa they're panera's success over 30 years, stock has been up 4,000% in the last 15 years. that's happened because we come from trying to make a difference in people's lives. when we do this he reward us by visiting us. >> ron, it's sara. >> is this panera sara? >> yes, it is panera sara. he knows about my high school nickname. >> i do. >> it comes from the bread bowls. how much of an overhaul is this to the ingredients? is it going to cost you and the consumer in the form of higher prices. >> we don't expect a price increase because of this. this is a difficult process. it happened over 40 50 years. manufacturers in the '60s and '70s were trying to drive shelf space or greater efficiency so they could lower prices or they were trying to have greater consistency because consistency meant it could be machines. over the last five or ten years

we've been to learn this isn't necessarily good for us. it seems to us really clear, simple, less processed food is better. that's essentially the reduction of everything we've learned about nutrition. keep it less processed. keep it closer to your pantry. >> there's an element of pr savvy in this move. what do you expect in terms of brand awareness or brand recognition from doing something like that? >> you know, i don't actually know. i guess we don't start there. we start by trying to make a difference in people's lives and it works. you know, we've been working on this for years. bottom line is listen i hope it brings more people into panera. i hope people get this is a good housekeeping seal of approval a line in the sand. they know there's a comprehensive transparent, clean food within panera. if that helps them to come to panera so much more that's great. but frankly we're doing it because it's the right way to do

business. >> ron, sharon epperson. a lot of retailers, restaurants are very concerned about bird flu and what the impact will be particularly as we get closer to the end of the year. i know you have specials around thanksgiving time. how concerned are you about what's going on? >> well to be straight with you, we're in the process of working towards the fall with completely -- relatively unprocessed turkey. our roasted turkey that we'll be using for all of our celebration sandwiches in the fall is simply turkey with salt and pepper a little olive oil. that's the entire processing you get. nothing else. it's the kind of turkey i get at my in-law's house at thanksgiving. obviously if there is a serious problem with the bird flu, it could cause problems for all of us in the restaurant industry and all consumers. >> hey, ron, you had a stock that at least some on wall street said was ripe for an

activist. and in fact you got one in luxeor capital, who said they had constructive conversations with you about doing a big buy back. $500 million. had an activist not come calling, would you have done that sort of move? >> yes. the reality is we talk to all of our shareholders all the time. i believe we had one meeting with luxor. this wasn't a major series of discussions. it's something quite frankly that our board has reviewed every quarter and continues to review. i think we're in a transformation with panera. we're trying to prepare it for another decade of very powerful growth. given that we're in it it seemed this was a good time to announce that buy back. >> thank you, ron. good to talk to you as always. ron shaich. >> good to talk to you guys. >> he's the ceo of panera bread.

kate rodgers has more earnings. this time for herbalife. 1.29 versus estimates of $1. revenue reporting 1.11 billion versus estimates of 1.09 billion. they're raising full-year guidance for adjusted eps of 4.30 to 4.60. and the stock is up huge after hours, more than 14 3rers. back over to you guys. >> wow. >> they can't get away from talking about this story. yesterday we had bill ackman on. his conviction is as high as it ever has been. >> right. >> good herbalife. there are some still on the other side that are highly convicted on it or have as much conviction as they ever did as well. >> it continues. >> it's a good earnings report and they raised guidance as well. salesforce surging on rumors that microsoft might be interested in the company.

if microsoft isn't a buyer, is there another company out there that might be interested in a cloud computing company. is there a case of rogue employees or is there something bigger at work? kayla is all over that story. it's coming up later on "closing bell." last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step.

salesforce sending traders

into a frenzy again in the last hour when the stock was halted on speculation, this time microsoft was interested in bidding for the company. microsoft is reportedly denied the rumors but nonetheless, the news did send salesforce shares soaring up 5 prer at its highs, settling back lower than that. >> cnbc reemped out edreached out to salesforce. it doesn't comment on rumors or speculation. johning us with their thoughts jack moore director of search for jim cramer's charitable trust at the street and mr. wonderful, kevin o'leary from o'leary funds. does this make sense, microsoft? >> it makes a lot of sense. i was doing a quick poll. we have an interest in $27 private company, sales, you know, midcappish 5 million, 10 million, 15 million in sales. they're split on two platforms for running their businesses. either on the cloud with microsoft or using the google platform for contact and

calendaring. they're paying a license with the sales force. if they're managing sales people, this is the platform. it's cloud based. i see microsoft, i don't care what they say, this makes a lot of sense for them. i also see ibm. this could be a game changer for them trying to get themselves to a 50% cloud base services. it would be a great product for them. i also see google. this makes sense for google small business platform. everybody would want this company. is it going to trade? i don't know. but, boy it makes a lot of sense for a lot of people. >> it has been growing fast. that's one reason cramer has had it in his charitable trust. do you think the deal will happen? >> i don't think it will. the pure size alone and complexity is prohibitive. i know microsoft has 85 billion in cash but this would riff $65 million investment. and microsoft appeals to the value investors. this would not be a value-enhancing transaction. this would be a bet on a

seamless integration, assuming that the 25% run rating growth would continue on seamlessly. microsoft is growing their commercial cloud business at over 100% already. they believe they can get organically to 20 billion. i don't see how salesforce fits in. >> do you think it fits in with some of the other companies kevin has mentioned, ibm or google? >> google is always a wild card. we know google for the charitable trust. the last thing i would want is for them to get bigger. that's the biggest issue with them. i think that oracle, i initially thought that might make sense. oracle isn't growing. when i looked at it more i saw salesforce would only contribute 10% to 13% of the revenues. it would destroy margins by 500 basis points and increase the growth rate by 2.5%. i don't know if that really is the needle mover for them. oh, is the most disciplined acquirer. it just doesn't make sense from

that perspective. >> oracle did a $10 billion bond which set the rumor mill in motion. there's a thread that keeps emerging because marc benioff, the founder and ceo of salesforce is such a vocal and well-regarded leader that obviously he wouldn't concede control of his company. maybe it's a succession plan move would you buy into that? >> i came on last week talking about that. i don't see marc benioff heeding control of this company. he'd have to be the leader, no doubt. he believes he can double the run rate or his business organic organically within his core product base. he wants to -- they just bought a 60-floor building in san francisco. why would they want to just make it even bigger? >> kevin you want to respond to that? >> it's a delicate balance. when you're at hot girl at the dance, which this company is

because of its complete command of the vertical on the cloud, it trades at an absolute maxed out premium for its growth rate. if you are a shareholder, you may want to consider looking at the history of what happens to companies that have been here before. i give you microsoft over i decade ago in the 60s. going into a place where money died for over a decade. this, too, will happen to salesforce. if somebody wants to monetize it here it's pretty well at a very good place to turn it back to cash. i'm just pointing out as a portfolio manager, at the end if there's any hint of growth slowing, which could happen the next couple of years, sometimes when people come knocking on your door to buy your business i've learned over many decades, sometimes you should sell it to them. >> kevin, what does it tell you, if anything about where we are in the market itself if you have the potential of a 50 plus billion dollar deal even being discussed among two companies?

>> the cost of capital has never been lower, ever. if this company wanted to go raise a massive bond issue, it could do it whoever the acquiring company is wanted to use their stock in debt there is an unbelievable appetite for corporate credit right now. this could be the largest bond deal in history. there would be global appetite for it because the brand salesforce is a global franchised licensed basically click charge infrastructure business which is immensely popular right now. it would be easy to fund. anybody that has a stock like an oracle could go and raise debt to buy this. look, i agree probably oracle is the wrong cultural fit. i go back to ibm which has been buying back stock since the cows come home, trying to figure how to grow value for shareholders. maybe they should take the plunge here. it fits with microsoft and google, always a wild card. for small midcap businesses

this is the product. i think there is a deal in play here. if i'm a shareholder, i wouldn't mind monetizing it. >> yes. kevin, good to see you as always. >> take care. >> mr. wonderful, kevin o'leary. let's send it over to kate rodgers. groupon. >> it's mixed for groupon, sara. they did beat on eps. they're reporting adjusted earnings of 3 cents versus estimates of a penny. a miss on revenue, 750 million reported virts us estimates of 812 million. they're giving weak guidance for the second quarter of the year. they see revenues between 700 million and 750 million. also adjusted eps of a penny to 3 cents a share. the stock fell when it was first reported now. it's up near 1%. back over to you. >> all right. a lot of earnings numbers. thank you very much kate rodgers. it is time for a "cnbc news update" with sue herera. here's what's happening at this hour.

attorney general loretta lynch thanking baltimore police officers for the work they have been doing. she shook hands with the officers and listened to their stories from the past week. she praised them for allowing peaceful protests and helping in the cleanup of the city. isis officially claimed responsibility for the garland, texas attack over the weekend. so far, though there is no evidence to support their claim. republican senators on capitol hill vowing to keep the a-10 warthog flying despite the pentagon's plans to retire the fighter jet. gop members in the senate armed services committee are leading that fight despite air force officials' claims that retiring the plane could save $4 billion over the next five years. the class-action lawsuit has been filed again the promoters of the manny pacquiao/floyd mayweather flight which was held on saturday. it is seeking damages because pacquiao's shoulder injury was not disclosed before the fight.

and that is the "cnbc news update" this hour. back to you guys. i'm sure had 2 been disclosed it might have changed the odds. >> i don't know. i saw him punching. it didn't look like he had a scholler injury. >> he's actually having surgery at the end of the week. he has a rotator cuff tear. >> out 9 to 12 months. >> may have changed the number of people who paid 100 bucks or so for the pay per view. >> that's exactly right. >> who knows. sue, thanks. >> thanks. did one of the nation's largest banks encourage employees to charge customers bogus fees? los angeles suing wells fargo for allegedly doing just that and much more. is this a case of banks behaving badly or a few bad apples? that story is next. super hero movies are all the rage these days. how come hollywood hasn't produced a female centric superhero movie in a decade? we know why. the answer may shock you. that story, coming up later on the "closing bell."

tdd# 1-800-345-2550 [ male announcer ] your love for trading never stops tdd# 1-800-345-2550 even on the go. tdd# 1-800-345-2550 open a schwab account, and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 so if you get a trade idea schwab can help you take it on. tdd# 1-800-345-2550 we're getting a lot of questions tdd# 1-800-345-2550 about organic food stocks. tdd# 1-800-345-2550 [ male announcer ] sharpen your instincts tdd# 1-800-345-2550 with in-depth analysis by schwab experts. tdd# 1-800-345-2550 and if you want to run your idea tdd# 1-800-345-2550 by a schwab trading specialist, tdd# 1-800-345-2550 our expertise is just a tap away. tdd# 1-800-345-2550 what's on your mind lisa? tdd# 1-800-345-2550 i'd like to talk about a trade idea. tdd# 1-800-345-2550 let's hear it. tdd# 1-800-345-2550 [ male announcer ] see how schwab can help tdd# 1-800-345-2550 light a way forward. tdd# 1-800-345-2550 so you can make your move, wherever you are tdd# 1-800-345-2550 and start working on your next big idea. tdd# 1-800-345-2550 ♪ ♪ tdd# 1-800-345-2550 open a schwab account and you could earn tdd# 1-800-345-2550 300 commission-free online trades. tdd# 1-800-345-2550 call 1-877-670-3357. tdd# 1-800-345-2550 or visit schwab.com/trading. tdd#

1-800-345-2550 schwab trading services. tdd# 1-800-345-2550 your go-to for trading know-how. tdd# 1-800-345-2550 ♪ ♪

the city of los angeles is suing wells fargo for what is deemed quarterback quote, unlawful and fraudulent conduct. you've been covering this story pretty much all day for us. what can you tell us about it?

>> we've all been into a bank branch where you thought you were going in to take out a checking account and someone upsales you or you go in for a credit card and they convince you to do something else. it's the way banks have been able to increase revenues in their virmt. the lawsuit says wells fargo took it a step too far. this is targeted mainly in southern california where some two dozen nearly 30 employees were fired a couple years ago for engaging in these practices. it was exposed in an investigation that the "l.a. times" did. here are some of the things that the lawsuit and the investigation at the "l.a. times" said wells fargo was

doing. having a customer open an account, telling them it didn't have fees when it did have fees. or in some of the worst cases, potentially taking out accounts for customers without their consent or signing them up for a credit card without their consent. in some cases the suit describes this practice where some of these sales people were begging their family and friends or taking out ghost accounts with fake e-mail addresses to meet these steep sales quotas. wells fargo said it will vigorously defend itself against these charges. a couple years ago when these allegations first came out, they said they fired all of the rogue employees that were engaged in the type of behavior. they said they're committed to only giving customers the products they want. that is a statement in part from the bank on the back of today. but it is interesting as popular as cross-selling has become wells fargo is one of the best in class at this practice. jpmorgan another. how strict and how scrutinized

this practice will be by regulators if in fact the cultures of these banks are found to be doing this on a more widespread basis. >> consumers now have the tools to do a lot more scrutinizeding themselves of their accounts and while you do go into a branch perhaps and the cross-selling take place, a lot of the customers are migrating toward doing things online mobile banking. you can see all of your accounts right there. if they are under one account name they should be listed there. customers need to double check. the other thing it brings to mind, credit reports. how often do people go and get a free copy of their credit report when these accounts would come up. if you didn't see it on the bank state, you might see it on a credit report if you went to annualcreditreport.com. >> kevin o'leary of "shank tank" mr. wonderful is back with us.

i didn't mean good night before. it's good to be able to talk to you about this story. i'm wondering what your take is. it seems to be a bit more than do you want fries with that shake? >> first of all, let me disclose i'm a shareholder of wells fargo and i have been for a very long time. this is one of the best run financial infrastructures plays in the world. here we are litigating them in the same way i think people have looked at litigating attorneys general of new york taking on every bank they could just to get money for a municipality. i'm skeptical this claim has any merit at all. >> why? >> because 30 employees out of a company that has tens of thousands. i think i can make a statement that's quite fair. there has never been better transparency in the financial system particularly if you're a consumer than there is today. we were just discussing how much you can get online. it is virtually impossible to hide a fee on anybody anymore in commercial banking. or in consumer banking for that

matter. i don't like the tonality of litigating banks just because the money is there. i'm tired of it. i would like the company to fight this litigation till the cows come home. i'm one shareholder, asking my management, enough fight. >> what if the charges are true? >> also this isn't on a grander scale like some of the federal probes and finds we have seen. this is versus los angeles. how much money is at stake here? do we know? >> why don't they go sue the 30 employees that did this against the policy of the bank? why is it that one or two people in an organization with tens of thousands should make the lives and times of the people doing all the good work and their shareholders pay the price? >> i don't disagree with that at all. >> the claim in today's lawsuit is yes, the bank did fire the employees, terminated the employees which, yes, they're on a small scale versus how big the

company is but they were founded to have been engaging in this practice in southern california this is the city of los angeles going after them. even the lawsuit is on a smaller scale but the claim is that the bank did not tell customers when they were affected by some of these fraudulent accounts, that only the customers that went to the bank and said something is amiss in my account or i've been charged for something or my account has been overdrawn by fees i didn't sign up for, only in those cases when the customer called them out on it the customer was responded. it actually could have affected more people. >> this is an incredibly small percentage of all the people that do great work at wells fargo. this seems to me to be something -- i'll put two columns of people i would throw my wrath at. number one, sometimes these claims are dreamt up by lawyers who think they have something on a contingency basis, maybe getting a third of the proceeds.

i don't know in the case of the city if they hired lawyers like that. lawyers like that are below single cell amoeba. that's where i'd put them. i would like to take this case as a shareholder, again, appealing to management, let's go the distance. call this the same as tobacco litigation. let's fight for 150 years and see how it's settled. >> i think there are a lot of bank shareholders that would agree with your sentiment for sure. >> i'm just tired. i'm sick and tired of it. >> instead of seeing it as a government against a bank how about protect the consumers? that's what you need to worry about. if you have a bank account wells fargo or elsewhere you need to be concerned with that. >> we have to cut it off. we have breaking news on jpmorgan. >> speaking of federal proshs kevin will love this one as well. the quarterly filing from jpmorgan, in it it says it's in advanced stages with the department of justice and the fed on foreign exchange

investigations. of course, this is an issue, sara you know well it's been under ways for several years. >> it was the next one to drop. >> it could be fairly large. last week bank of america said it agreed to pay $180 million to private investors to solve these issues as well. certainly continuing legal issues not anywhere in the end of our sight here. >> not seeing impact on jpmorgan after hours, continue to watch that one. sometimes investing as we know can be a laughing matter. just ask "everyone loves raymond" star brad garrett who has put his money where the jokes are by opening a brand new comedy club in las vegas. we'll talk to him about that as well as his new inside show biz tell-all book. first, airbnb in cuba.

man: you run a business. could be any kind of business. and every day you've got important decisions to make, like hiring. where are you gonna find those essential people you need? with ziprecruiter, it's simple. we post your job to over 100 job boards

with just a single click, so you can reach millions of qualified candidates. then we'll give you the tools to help you manage, screen and rank your applicants all so you can find the right one. try zip recruiter for free today. we're back. oil prices are rising and a frac'ing counterattack could be on the horizon. >> allen wastler has that story and the rest of today's hot list. i was hoping my dollar story would make it allen. >> sorry, sara. oil is on the mind of the readers today. they're taking a look at the $60 oil price and whether that will bring rigs back online. that's getting a lot of attention. we have a nice feature of airbnb cracking the cuba market not bad for an internet company in a country that's basically

noninternet and the billy corrigan interview, you know smashing pumpkins on cnbc earlier today -- >> that was a great interview. >> getting a lot of attention from the '90s music crowd. artistic value, right scott? >> i urged everybody to check that out. it was a really good interview. he's very outspoken. >> did they play music videos from the '90s. >> they did not. >> after he starred in one of the most successful tv comedies ever, there's one place to go, las vegas. after "everyone loves raymond's" nine-season run, comic brad garrett has returned to his standup roots and gone into business for himself, opening a comedy club -- >> i'm shorting apple! >> he'll join us when we come back.

i think about the shape. i think about color. i also think about sound. i take it into my brain and i think about... ..what would it look like to me? my tin man has a big toe the size of a house. the lion is small like a toy poodle. it has webbed, duck feet. and he is very scared of everything. my scarecrow has wooden teeth...

his fingernails are really long. and his clothes have tubes on them. ♪"somewhere over the rainbow"♪ ♪"somewhere over the rainbow"♪ and that's dorothy. she looks like me. everyone has a favorite movie. now people with visual disabilities can find theirs. comcast is proud to introduce the first talking guide. from xfinity. . well, of course you know our next guest. he played the lovable big brother on the hit tv sit-com "everybody loves raymond. >> but brad garrett doesn't just perform stand-up in las vegas. he owns the club at the mgm grand. his turn from funny man to

businessman. glad to see you here. >> it's good to be here. what a day on the market huh? >> it was huge. >> oh my god, apple like 650 a share overnight. that's something you don't see a lot of. i can tell you that. >> we just found out your father was floor broker? >> he wasn't he sold chocolates. it's gepetto from pinnochio. how are you? my dad sold a lot of different things. he sold questionable mattresses. he was the first jewish guy to get swim lessons. a lot of things didn't pan out. >> how long did it take? >> you want me to leave? if i'm opening up to you about pappy, i think there is another way to get in. the club is at the mgm for three years now. >> you just insulted the guy like in mgm commercials you.

>> you just insulted me. what are you talking about? >> my samberg club is in the basement next to house of magnet. which is your name in high school. right next to a new york pretzel. i'd love to have you there. it's a lot of fun. i know when you go to vegas it gets a little. next time you go. >> how often do you go? >> i have footage. >> i kind of hope not. >> you have also written a book. >> it's about mid-life. you don't have to worry about that. how old are you? >> 35. >> seriously,? okay. whatever do you if stock. >> you open ud about your dad. your dad is not with us. your mom is with you. you talk about in this boom that so many of us go through. you are now more the

businessman, you are taking care of a parent whos a alzheimer's? >> it's you know it's a brutal life for somebody going through that. my mom louis odd tell me never let me get to this stage. what do you when they get to that stage? that's what's so difficult about it. this book about mid-life is really about happy, i sat down one night, if i may, to urinate. i have a little problem. three, four times a night. i let the people out of the room then i go do my thing. i have a little problem with the pea stream. i know are you fought there what is it, jerry,? tim? talk to me mannequin. >> hurry up you have 30 second finish this story. >> you will one day. i know you are only 30. ha ha. and in dog years.

no but i sat down to pea and the jeanie hit the toilet and they were, okay they were there. they were swimming. >> i'm following you. >> so i went into a deep depression and you know got a bow and arrow and went that's it and ended up camping and spending sometime outside and really going i have to talk about middle age and how you just have to enjoy yourself and just let it go because it doesn't matter how you work out. i know you do a lot of there i think so to look like this and you are amazing, but it's all going to go. one day your jimmys are going to -- so it's really about mid-life and how women rule the world. i want to be one of the first palestinian to go on record it's called the power of the pink, it's an amazing chapter. you women rule the world remember guy versus to admit. that all you weiseles not you dancer running around. >> we got to wrap it up. i think everyone is interested in reading the book after that.

thank you. it was a lot of fun. >> i feel like life just owe o'it's a lot of fun. i signed the book for all off. maybe you can sell it on ebay. >> all right the book is called with the when the balls drop." we'll be right back. small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step.

>> that was fun, yeah. >> okay. >> that does it for us on the "closing bell." thanks to our panel resultan and kayla. >> "fast money" starts right now. >> "fast money" starts right now. we are live from the nasdaq market side overlooking new york time's square. hello, our trainers tonight are tim see more guy adaimadami, all the usual suspects. is the best deal of all times possibly back on? reports that we're going to tell you what the massive deal could mean the tech's next move. plus on the eve of the crash anniversary,