watch "your business" 7:30. afternoon and welcome to "closing bell." kelly evans here at new york stock exchange. >> and i'm bill griffeth. a retail sales number that disappointed literally unchanged for the month of april, and that's about what the stock market has been much of this day as well. so we're going to follow this last hour of trade here and see if we get a breakout one way or the other. 15 far we haven't seen it move from the unchanged. >> maybe it will be earnings that give us some catalyst. >> we certainly have that to look forward to in the next hour. dow component cisco systems,

jcpenney, shake shack leading the charge. numbers to watch for, deliver those the moment they hit the tape. break them down for you, look at outlook, and the market response. all coming up here on "closing bell" today. >> meantime more questions than answers following the deadly amtrak train crash in philadelphia. we'll speak with rail refegsles and senator tom carper what can be done to fix the crumbling infrastructure bill. ironically it's infrastructure week. >> the house was scheduled to vote on amtrak funding today, they did, and did vote to cut amtrak funding, as expected. >> house committee, i think -- >> house committee work on that. >> one proposal to increase funding, it didn't move forward and the bill being marked up would cut a quarter of a billion. >> timing is everything. such a great story from homeless to harvard. this wholelesshomeless girl, used

crowd funding to raise thousands of dollars needed to attend harvard university. she will be here at the new york stock exchange to talk about how she did it. i just love that story. what initiative she took there. >> oh, yeah it goes to show when there's a will there's a way. unchanged, the dow trying to figure out what to do with the retail sales report in cross currents with people marking down gdp forecasts and yet, bill, a lot in the rear view mirror, these economists insist. the dow hugging the flatline. same for the s&p, below 1 2 100 level. nasdaq up nine points. dupont, which we'll get to later, is one element weighing more heavily on the blue chips. >> down 6%. let's get to all of this and "closing bell" exchange today. they include index financial partners, keith fitzgerald from money morning, ron weiner and

rick santelli is there in chicago as well. keith, if we're to believe that friday's rally was a response to the tepid jobs record the thinking being if it's going to be tepid, that leaves -- that means the fed won't be raising rates anytime soon. why don't you think we got a rally on the weaker than expected retail sales number? that's not going to help inflation expectations. >> no, it won't, bill and that's very good point. there's no real serious catalyst to move the markets. traders don't know what's happening. we've seen conditions this narrow, six times in the last 20 years. >> what do you mean by narrow jack? >> well talking to keith. >> sorry. what do you mean by narrow? >> volatility over the last 50 to 60 days has been within one standard deviation, we haven't seen that except six times in last 20 years. the good news is that's like a spring being coiled up.

i call this ano-brainer market that's what people should be buying, stuff that's not going anywhere even if comes under pressure, energy defense, oil, infrastructure ironically enough, that's are where smart investors are going to make thash their move despite the conditions. >> jack, since i invoked your name, do you think people are sitting out the market because a shoe's about to fall or why aren't we seeing more upward bias? >> i don't think people are getting out of this market. last time we're one or two percentage points off of the all-time high. if they're getting out of anything, they're getting out of the bond marketen this velocity of the move in the bonds. it's something, again, and rick has been hitting on it it's been right on the illiquid conditions. not only a synthetic condition but an illiquid concreted. when they move that fast everybody holds their collective breath, and they wait for things

to slow down. once it does slow down what keith said is absolutely correct, it is a spring that is just waiting to unfold and when it does that is one of the reasons i'm getting very bullish for the second half of the year. >> rick, since he invoked your name, let's bring you in. three-year note auction good yesterday, ten-year note auction today good. it's clear when you get yields six-month highs that will bring buyers in won't it? >> yes. but i think the lesson to be learned today, i think many investors rather not dig down the way they used to. there was a real market whisper today. weak retail sales, ten-year note yields moved around to 2.18 but didn't stay down there long. as a matter of fact, ten-year yields now close to -- they just took over 2.28. a fresh high going back to december, '05. third year bonds 3.07 already there. fresh high yield close back to 19th of november. ten year bunds, 30-year bunds,

both reverses, 12.05 on tens no coincidence it lines. with our ten. their 30-year bund since the end of december. what does that mean? market mechanics continue to take the lead. we saw what a market should do on weak retail sales. now we see what they are doing in the fix income. a couple days ago i said i think 2% to 220, 225's our new range, based on the way the market's acting i'm telling you what all you need to keep is one thing in mind as we keep closing above 224 or conservative, less conservative 217, yields are going to have a propensity now and again to shock you, whether 2.231 or higher. it's t. seems the sellers keep coming back, no matter what. and this is something to pay real close attention to if you're long stocks. >> ron, i earlier saw somebody recommending the life insurers if we are entering a period of

higher rates. do you think rates will keep going higher? if so, what should people be dying. >> i'm trying to digest what rick just said than was a mouthful, the bunds, all of these things. i'm old fashioned. i think bonds are meant for income and safety. i think you ought to get out of the bond fund market and buy ladder bonds. guess that rates are going up more than they're going down. this movement ten-year down 3% in ten days. bonds aren't supposed to do that. we're out of the fund business and into the individual bond have been for a while. i don't think that bonds are a place to make money. i think they're going to lose money and people in bond funds especially leveraged ones i think they're not going to be happy in the next year toward. >> what does that mean people in the stock market at the same time. >> you would think the financials would do better all of the guys that benefit from the higher long rates would do

better. >> it's the steepening yield curve. >> what's happening is that the market's fully valued. >> there you go. >> there isn't a lot of catalyst to move. but it's okay. it doesn't have to move up 15% every year. now you've got to be a stock picker and a sector picker. indexing was great, everything worked or pretty much everything worked. now, pick your shots, and as i've been saying all year go more global. there's more value overseas and there's plenty of dividends overseas in stocks as well. you've got to moshre of a stock picker, more global if not more global. >> i see a champ in there, jack. >> you know what? i don't understand how people are saying that this market is fully valued. i've been hearing it's fully valued for the last three years, and the market continues to go up. who's to say it's fully valued? a low energy market weep have all of the headwinds we've been talking about the last five years. >> ten years. >> the market continues to go

higher. the reality for me is that when i hear talk like that i love it because it tells me the market's more than likely not only going to see earnings expansion but multiple expansion on top of. this market is poised to make a huge move what happen keith said everyone needs to listen this market's gone sideways for so long and when that happens it's a precursor to an enormous move in the market. i think it's going to go up. >> i would l. say thank you, jack. >> we'll see ten-year notes go to 2.75? you don't think stocks will have any issues with that at all? >> in fact you know this location right off the bat might create a margin call rick. but you know what happens going to happen to the capital? it's going to work into equities. >> forgetting the capital. >> -- going into capital for two reasons. >> it's going to get destroyed. >> no, no no. we're going to be. >> the bond market.

>> hang on. keith, fill it in there. >> don't forget, the bond market is several times the side of the overall equity markets, those things are linked and arbitraged today. wait that individual investors can proffer, do one thing they've done well tap into growth. for that get into individual stock selection, expanding equityies because equities drive price. growth is undervalued at any price. if you've got the right time. >> i think that's right. i think the market's not scheduled to crash any time soon. there's no recession on the or rinz. so you can own stocks and they will do well. i think you're not going to be happy with your total return on bonds. that's the point. people will be getting out of that. >> i'm sure you will not be yes. >> real quick on what parts of the world if you could be as specific as possible, and which sectors do you like.

>> pick your global shots, the consumer $15 trillion business. it's scheduled to $30 trillion by 2025. so that's a short time to double the market. so consumer cyclicals and stable consumer stocks walmart, mexico unilever of india, buy that in an etf like we did, we'll own 20 30 at a time. i think that's there. europe it's cheap. europe's quantitative easing p/e and the currency you can buy big companies in europe and stand a better chance of making better money than big companies in america, though we still own mostly america. >> all right. no question this is one of our favorite panels. always love having you on. see you later. with 50 minutes to foe into the close, looking to see if markets break out one way or the other as we continue to digest earnings and economic data. now, hugging that flatline. dupont the biggest mover in the

dow, otherwise a session where the dow's down 1.5 points the s&p barely positive. >> a lot of earnings to digest. belly up. we've got an earnings palooza after the bell. cisco systems, jcpenney shake shack, a few of the biggies reporting after the bell tonight. we'll bring you the numbers the second they hit the tape and instant analysis from our pros. back to philadelphia for the latest developments in the deadly amtrak plane crash. what needs to be do to fix the aging infrastructure across the country. [ male announcer ] legalzoom has helped start over 1 million businesses. if you have a business idea, we have a personalized legal solution that's right for you. with easy step-by-step guidance, we're here to help you turn your dream into a reality. start your business today with legalzoom. [ male announcer ] your love for trading never stops. so if you get a trade idea about, say organic food stocks schwab can help. with a trading specialist

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>> stocks trying to digest it. investigators recovering the black box today from the amtrak train that crashed in philadelphia killing at least seven people. eamon javers has the latest for us now. >> reporter: kelly, just within the past hour here philadelphia mayor nutter holding a press conference, saying it was only by the grace of god that only seven people were killed in this horrific accident. you can only imagine what the scene was like inside those amtrak trains as they went tumbling off the tracks at speeds investigators tell nbc news were north of 100 miles an hour going into a very tight curve here in the frank ford section of northeast philadelphia. mayor nutter saying, investigators have recovered that black box. the ntsb tweeted out a picture of the black box, it's orange and investigators say that in that recorder will be the key data to unravelling the mystery of just what exactly happened on the businessiest transportation corridor in the united states the northeast corridor 11

million people plus travel this corridor by rail in 2014. hugely important economic asset to the northeast part of the united states of america. estimates are that if you shut down this corridor for just one day, you're talking about $100 million of economic impact going forward, guys. in washington they're fighting over whether or not amtrak needs more funding, less funding, whether this is an infrastructure problem or whether this was an operator error that caused this tragedy here in philadelphia last night. guys. >> exactly it. we're going to dig down on both of those pieces now. thank you, eamon javers in philadelphia. every four years the american society of civil engineers grades america's infrastructure and in its most recent 2013 report c plus. that was the grade given to america's rails, bridges garnered the same roads and transits both received a "d," though. >> high speed blamed for yesterday's amtrak crash so far, but crumbling rail

infrastructure is a cause for concern obviously. let's take a look at what needs to be done to avoid tragedy in the future and how to improve these systems. we bring in the manager director of government relations and infrastructure initiatives for the american society of civil engineers. good to see you. thank you for joining us. >> thanks for having me. >> so, you know the tragedy yesterday aside, because we're still not sure what caused that but you know obviously infrastructure is a problem. when you have the volume especially this northeast corridor that's used the volume of train movement on the tracks of this part of the country has to take a toll over time doesn't it? >> well certainly. the use is going to be an issue. i think the issue really is that congress continues to not fund our infrastructure the way they should. we have flat funding for most areas of our infrastructure there's currently discussion in congress on the house side about how much amtrak should be getting, i think the funding

bill in the house is about $250 million less than they got last year. 1.4 billion, the number you put up on the screen is the low bar for what we should be spending. amtrak's got plans and has needs for more than that. what we'd like to see is congress take our infrastructure more seriously and really to focus on investing in the backbone of our nation. economy which is our infrastructure. >> brian, people are focusing on the either/or, earth the driver was speeding or the infrastructure. some of the controls that might be in place to catch a speeding train i'm don't know what those might be but they're ultimately infrastructure investments, are they not? are there tools or options out there if they were better funded we'd be able to employ to keep things like this from happening? >> certainly issues you can put forth in positive train control and things like that. but i think ultimately the issue is, we need to wait for the ntsb

to make their determination. they're the experts on this. they're the best folks capable of addressing what are the causes. i think the broader issue really is that for at least last 15 18 years that we've been doing our report card the nation hasn't been investing the way it should in our infrastructure. >> how much money should they be investing? do you have a price tag to raise the grade on the rails and who should be paying this? how much should the private sector be contributing as well do you think? >> in fact in this case the freight rail has done a tremendous job. the krin es thatincrease in our grade, went from c minus up to a c plus which may not sound like a lot but that's significant in the grades that we have. and what we found is that in that sort of four-year period and actually it has continued, the private sector the rail companies, the freight rail companies, are averaging about

$20 billion a year in investment in their system. however, it's important to note that the northeast corridor is the one corridor of the nation where amtrak runs where they own the majority of those tracks. so it's actually incumbent upon amtrak and in large part congress to invest in that corridor of our nation's infrastructure for the rail part for that passenger rail system. we're not investing enough in that sector and congress discussed it. it seems like a yearly debate in congress about how much money amtrak should get and we sometimes get side tracked on other issues. >> i don't mean to cut you auch i'm think about safety when it comes to traveling on the railroads especially the heavily trafficked corridors whether amtrak or the metro area new york city railroads that have had significant speeding accidents as well. some have been on the rise. i'm wondering if we look to try to expand this rail infrastructure, are we

overlooking core weaknesses, are they driver related or are they somehow more systemic? there somehow going back to the original point, an infrastructure, in the infrastructure investment itself i mean to say, that could help to slow down trains that are speeding you know keep runaway trains on the track better? these are all kind of things we're starting to see in automobile technology. i wonder -- >> driverless train. >> right. the railroads as well. >> number one, your point is very important. safety should be job number one, whether it's amtrak or the freight rail system. we see that in all of our categories of infrastructure really, as civil engineers our members take that tant amount that's our ethical code, number one, the first cannon of our code of ethics public safely and welfare. when our infrastructure fails, there are consequences. i'd note also on our highway system, you know 30,000 people

there were 30,000 fatalities last year, north of that on our nation's highway system that's unacceptable as well. that number's been coming down in part because of technology because of enforcement, you know getting drunk drivers off the road but safety's tan amount in all of these areas of infrastructure. >> brian, thank you very much for your time. >> appreciate it. we'll continue to follow that story. 35 minutes to go into the close. dow's down 16 points. the s&p giving up 1.5. the nasdaq positive by five. >> when we come back wall street's top retail pros connect the dots on the lackluster data and when they think consumers will get back to spending. plus stock picks you cannot afford to miss as well. >> dupont scoring a victory over nelson peltz's management. are activist investors losing their mojo?

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welcome back quick look at dollar index today. right after the retail sales report, another disappointment. another leg lower. check out the impact that's having on assets like gold which is popping higher. unwinding some of the trades bill, that predominated until recent. >> i look at that. up 2% for a time but pushed it back above $1200 on the price of gold. the latest reading shows

consumers cutting back on spending. courtney reagan joins us now with the story. what happened. >> people are asking where is the consumer? this is retailers report lackluster results and the u.s. government also reports no growth at april retail sales. autos, furniture, electronic sales fell in april, online sporting goods and clothing store sales showed modest improvement month over month. the magic wasn't myth macy's in the first quarter. the department store fell short on earnings and sales but did reaffirm it's full year earnings and sales forecast. macy increasing dividend and share buyback program. the company says delayed merchandise from the west coast port congestion, severe weather in the first quarter and spending by international tourists in big cities hurt sales. jcpenney reporting results after the bell, wall street expecting a loss of 76 cents on $2.8 billion with comp sales of

nearly 4%. as the retailer continues to work through its turnaround anything is possible in results. economists and retail analysts saying savings from lower gas prices we saw still aren't being spent in apparel retail. wage growth has to improve for consumption to improve, maybe in the back half of the year. >> that's key, thank you for now. are these lackluster earnings a sign to stay away from retail stocks, or could this be a time to get? >> let's talk about that strategic resource inside group and cnbc retail analyst. good to see you both. bert, you think we're overdoing the hand wringing on the month-to-month sales reports? >> too much mud wrestling. year over year we're up strongly in apparel, we're up in sporting goods, building supplies and auto restaurants, key spending areas especially big ticket and discretionaries. looking for a strong second half going into an even stronger

2016. >> i wonder where that leaves a lot of traditional retail industries. who do you think is going to get the dollars that are just marginally flowing this way? >> i think it's pretty clear that there has been dollars flowing out of apparel into technology and into athletic or ath leisure wear. now you're seeing accessories like handbags start to slow you know the numbers are clear today, macy's was disappointing, we're being hurt on all ends it's a strong dollar so even the tourism dollars are not showing up. the apparel sector in particular is under a lot of pressure and you have to be careful picking your spots for the second half and i'm looking for guide downs for the second half of the year. >> bert we showed while you were talking some of your favorite retail stocks they included walgreens, target and party city. but the one that caught my

attention was that at the one of the bottom there, you can't tell what that is that's a preferred on jcpenney stock. that thing's yielding almost 10% right now. tell us about that. >> it's a 10% yield, it's speculative, it's 25% below par but it's -- the stock's up 15% over the last two quarters. it's more secured for someone interesting in penney and doesn't want to take the risk of buying the common stock, the preferred stock senior to the common, and as you referenced attractive dividend for a speculative consideration. >> stacey i wonder if you can break down a little bit where we're seeing the strength and weakness in terms of the shopper. you mentioned categories that have been doing well up until this point, a high income/low income divide maybe papering over by the international visitor as well. if people generally speaking are losing interest in fashion, to put it almost bluntly, is that

overstating what may be happening here? >> i mean i think, again, it's the pie is not really growing that much. so the a shift. certainly as you look at the iwatch coming up potentially people are saving up to buy that iwatch you heard fossil numbers weren't terrific. you also heard from macy's today the watch business started to slow down. that's the first time we've heard that. so some of the higher growth categories are starting to slow and obviously the dollar shift is more into technology. the one bright spot certainly in apparel the off-price sector tjx, ross stores macy's into the business and ath leisure, not only footwear with nike but apparel ath leisure, under armour armour, lululemon is benefitting from that trend. >> what are you expecting from jcpenney in that earnings report tonight? >> you know what?

no huge surprises here because an executive in april actually pushed the update on the sales button and sent it it out publicly by accident here. so comps are going to be up 4% in april, they were up about 6% quarter-to-date. decent number if you consider what we've heard today from ralph and from macy's. but i also would look out for margins here. they're pretty maxed out in terms of their increases in profitability. they've made some progress. but with the sales number not really moving, the expense line and the margin line watch out for some pressure there. also watch out as they come up against comparisons. >> real quick, i know overall pie's not growing, jcpenney must be taking share from somebody. who do you think that is? >> they're taking it from bondton and sears, kmart, less capitalized retailers and writing better ads. they'll see more apparel.

as things warm up we expect apparel that will accelerate with the warmer weather. >> appreciate your comments on retail. >> thank you into time to kick it over for a cnbc news update with sue herera. >> at this hour senate leaders agreeing on a deal to move towards debating legislation key to sealing a pacific trade pack. mitch macdonnell said they would hold separate votes. close arguments taking place in the penalty phase of boston bomber sore nigh everybody's trial. telling the jury to keep an open mind whether he lives or dies. prosecutors saying executing won't make him a martyr but will give him the death he deserves. sharp has reversed a plan to cut capital base in order to qualify for tax breaks. executives wanted to reclassify the firm as a small to medium sized company but decided to continue to pay the tax as a

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into minus signs to major averages haven't gotten far away from the unchanged level. the dow's down 24. when you look at the 30 components, roughly half are positive positive, half are negative. biggest decliner dupont. and by a big margin too. down 6.5% in today's trade right out in. >> those shares are losing ground after the chemical giant defeats billionaire investor nelson peltz's management in a fierce proxy fight. >> mary thompson's live outside dupont headquarters in where else but wilmington, delaware. mary? >> reporter: bill, you know dupont shareholders handed peltz a rare defeat siding with management and electing all of dupont's 12 nominees to the board, rejecting the four candidates that peltz had put up for elections. speaking to cnbc after the meeting, dupont's ceo coleman

saying she was pleased with the results but realizes there's more work to be done. also says that she'll continue to engage with peltz. >> we'll continue to engage with them and a constructive way, we'll continue to focus on delivering value for our shareholders. it's hard to predict the future. but i think that the focus of all of us is on the creation that shareholder value and stronger company going forward. >> reporter: now in the meet peltz did say try onwith a 3% stake in dupont has a clear interest in the company's long-term success and his company will monitor dupont closely. he took credit for a number of changes dupont has made since trian took its initial stake march 2013 including spinning off its performance chemicals unit, cost-cutting program and buyback among a number of other things. peltz saying he thinks that trian's presence means going forward shareholders will no

longer be satisfied with underperformance at the company and so basically he sounded victorious in what otherwise was a defeat for the billionaire investor. back to you. >> all right. mary thank you. for more on this joining us is a professor of human relations over at harvard business school. he cotho coauthored a piece how to outsmart activist investors. does this indicate more than a defeat for nelson peltz but a set back for the activist investing community? >> i think what it does indicate is that companies like dupont, both the board and management figured out how to try to fend off these advances that they don't want -- which they don't want. in that sense, i think it is a defeat for the achivists but each one has its own tactics and strategy. we'll have to see what the

freedom nent trend ispre prepredominant trend is going forward. >> there are some speculators in the stock expecting to go higher if peltz was able to continue to prevail and agitate the board more. so they want to get out now that he's lost. or are there people disappointed that the person agitating for greater growth strategies of dupont has lost the battle now? >> it's probably lateal bit of both. but i think there are some people in their own speculative basis, they certainly probably are out now because it's going -- management's taking the long view and it may take months or years to see the earnings really grow. that i think has been the issue here underlying this little battle in the sense that dupont management and the board have a long-term strategy and peltz is trying to change it. obviously for the moment at least management and the board seem to have won. >> professor, the activists, as

you're aware, will argue what they're doing is trying to push for the best outcome for shareholders, for some companies as well. do you take a dim view of the activist community entirely? do you think they are too short-term oriented or their financial goals aren't in the best interest of society? >> well i think it's a very interesting question and it's hard to generalize because there -- you know there are a number of different activists with different strategies. but i think what some would argue -- and i agree with them -- the danger of somebody like peltz new york matter how fine a man he is, whatever his intention, could do things to reduce or limit the long-term growth of dupont. it's a company which we know has been around for hundreds of year and responsible for many great technological advances and really it's one of the premier

chemical companies probably one of two left in the united states. and it's important for the long-term health of our society to have those companies and our economy. and i think that what the management and the board are really arguing for is the opportunity to continue to develop products and long-term strategies and the fear that people have is somebody like peltz will come along and try to, you know, take cash away from those endeavors and therefore negatively affect the long-term performance of the company. >> before we let you go the title of the book "how to outsmart activist investors" give us 30 seconds, how do you outsmart an activist investor. >> understanding their strategies. one of the things we're beginning to understand is there are different approaches to to the kinds of activism that we generalize about. and there are examples for sure where the activists have had a

positive view positive effect on companies i'm thinking several years of home depot and investors are in california in which the investors found that had a really interesting investment thesis which indicated to the board and management by going into the wholesale business they had reduced the return on assets. and when this investor made management and the board aware of that they gave him a board seat and in fact the ceo nardelli was fired and the consequence of all of that was home depot's record improved and the shareholders benefited over several years. so that -- there are activists out there who have strategies and tickactics which support companies. understand the motivations and tactics of those who are coming after you. >> that's for sure. professor, thank you for joining us, jay lorsch.

>> thanks for having me. >> we have 15 minutes to go. declines in dupont are taking a bite out of the dow jones industrial average today. it's down 11 points. dupont was down 6%. s&p giving up one point. nasdaq trying to stay green, it's up about six. widely-held dowponent expected to post earnings after the bell. dominic chu will preview numbers to watch for coming up. later, a financial storm brewing in the windy city. a deep dive on chicago's credit rating downgraded to junk status by moody's and the fallout, stay with us. here at td ameritrade, they're always working. yup, we're constantly making thinkorswim better. like a custom screener on your desktop, that updates to all your devices. and you can share it with one click. wow. how

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as promised here's dom chu, previewing some of big earnings reports due out after the close tonight. >> a fun one, guys. start off with cisco systems, analysts expecting third quarter earnings to come in at 53 cents a share, that's 12.07 billion worth of revenues along with. strong demand for switches routers expected to offset weak spending by the company's traditional telecom customers. also shake shack reporting results after the closing bell. analysts here expecting a loss of 3 cents a share $34 million of revenue mz this is the second

set of earnings since the company's ipo this past year. shake shack has projected slower sales growth to continue through the rest of this year. so shake shack, we'll be watching closely. bill, kelly, i will be covering that set of reports after today's close. back over to you guys. >> thanks. ten minutes left in the trading session with the dow down ten points. >> mitt romney ahead on "closing bell." what happens next following president obama's stunning defeat in the senate on the asia pacific trade bill. another vote perhaps on tap. we'll talk to one of the key senators supporting the president on the democratic side, when we continue. back. your friends have your back. your dog's definitely got your back. but who's got your back when you need legal help? we do. we're legalzoom, and over the last 10 years, we've helped millions of people protect their families and run their businesses. we have the right people on-hand to answer your questions backed by a trusted network of attorneys. so visit us today for legal help you can count on. legalzoom. legal help is here.

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heading to the close with the dow down 14 joining us premiere wealth first allied and bob pisani at post 9 as well. we talked about the rise in yields and treasuries and you're pointing to maybe one of the causes the continued rise of the euro as well the dollar has stumbled, too, right. >> exactly. on a day like today, the dollar stumbles because of weak retail sales and the euro pop up there's a correlation. bond prices tend do go down yields go up. and i think if we see some more

of that we'll see a rise in equities as well. >> bob? >> i think the important thing right now is the markets are really rattled because we can't separate the threads and why yields are going up. i think the german bund rocketing up created that relative value play that's really got people spooked. there may be fundamental issues in the united states, maybe telegraphing inflation is stronger than expected. finally, i think there's concerns about liquidity. that's a third factor that's played here. we can't figure out which one is the most important factor. and that's what's causing a lot of the confusion right now. >> what's causing this lack of liquidity? i mean, there's still supply coming to market. are people sitting on their hands? >> i believe investors are waiting and seeing what's going on. coming out of a quarterly earnings season you tend to find that there's a lot of headline risk whether it's greece, the lack of liquidity that you just referenced, the euro, the strength against the dollar, the weak retail sales numbers. >> right. >> we do have great employment

numbers, obviously. there are a lot of positives in the market. you'll see a lot of sideways trading action. >> that retail sales number so disappointing, 4 out of 5 months flat to down only in march good easter sales diz we seed we see a move to the upside. the bull story for retail employment's getting better inventory's low, the traffic's increasing we didn't hear that from macy's or ralph lauren. i want to hear jcpenney after the close. is that the turnaround story? we better hear nice comment there's. >> you guys stay right there. we'll come back bring these guys back for the closing count. art cashin said that right now the imbalance going toward the close was to the sell side by 800 million, a big number but felt like most of that was paring off right away there's demand even as stocks want to sell off. >> why we're hovering perhaps. down 13 points but not more movement. we'll see if that changes in the

next five minutes. then, after the bell it's go time for cisco systems, jcpenney and shake shack to release earnings. we'll get you those numbers the second they hit the street. the breakdown from the pros. cnbc first in business worldwide.♪ it took tim morehouse years to master the perfect lunge. but only one attempt to master depositing checks at chase atms. technology designed for you. so you can easily master the way you bank. anything worth pursuing requires knowledge, hard work and a plan. at baird, we approach your wealth management strategy the same way to create a financial plan built to last from generation to generation. we'll listen. we'll talk. we'll plan. baird.

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all to grow our economy and create jobs. see how new york can give your business the opportunity to grow at ny.gov/business welcome back. 2:30 left as we head toward the close. dow is down seven points. let's focus on the earnings coming out. it's like a little island here.

we've had very few earnings reports lately but tonight, a pretty good cross section here. the biggest one by far will be cisco system. you can see that's up a quarter percent right now heading into the close. jcpenney, as stacey pointed out, a sense of what the year-over-year sales numbers will look like. the question is what's the guidance going to from the retailer? the stock's down 1.5% right now. shake shack, second earnings after ipo'ing this year up but expecting a loss from shake shack. and netease out as well. that's the best performer but shake shack still doing well. but netease is up 2% going into the close ahead of earnings reports. you know cross-section here these sectors, anybody you like right here? >> i like technology sector bill, i like the retail consumer staples, consumer discretionary sectors. and i think financials have to pull the s&p 500 out of a

support level of about 2120. >> especially if interest rates continue to rise. >> especially if interest rates continue to rise. i like the way the market's setting up. i wouldn't be fooled by the headline risk. i think the market's setting up for a sustained rally. >> $67 for shake shack. went public in the 20s. heaven bless them. they have some weird cult-like devotion. >> they do absolutely. >> make great hamburgers. >> it's unbelievable. >> $67 for a hamburger at the shake stand. >> jcpenney. >> get me out of this. >> look they said that so far, comp store sales run 3.5% 4.5%. if they can hit 4% i would be very impressed. macy's down 0 .7%. they were talking about -- everyone's talking about up 1%. they've got to hit some good numbers. if they don't, we've got a trend going where all of the retailers

are dispinting. we've got to get the traffic better inventory better. haven't heard any of that. >> thank you. >> thank you. >> going out virtually unchanged after the unchanged retail sales report. stay tuned. earnings coming out, fast and furious, senator tom carper of delaware more on the amtrak derailing last night. here's kelly evans in the second hour of "closing bell." thank you, bill. welcome to "closing bell," everybody. i'm kelly evans. here's how we're finishing up the day on wall street. the dow losing momentum into the close, regaining sole of it going out with decline of seven points. the closing high, 18,288. we haven't been able to clear that marker. the s&p barely negative. see if that remains the case as all of the numbers shake out here. nasdaq adding five points. the dow's as well had 6%

decline in dupont that was weighing on the index. manage to hold water with the broad market despite all of that. big earnings to get do as well. while we wait for them first, we'll introduce today's panel. joining me now, larry kudlow in the house, with our carol robb and jon fortt, welcome. more on today's market action welcome fast money trader brian kelly. welcome as well. let me begin with you, actually is this all going to be about the ten-year from here? >> well i any in the very short term what you have going on in the bond market you have fund that balance waitings by volatility. when that volatility increases you see them sell out than makes stocks more expensive because bonds become more attractive with a higher yield. that's the short-term dynamic going on. in the longer rer runun, are the yields rising because the economy's getting better? i would say it's not based on today's retail sales, based on

other data that we have. at best flat to stagnant. again, it does depend on the rates, and today with the stock market it's trying to decide whether or not bad news is bad news or bad news is good news and it's undecided right now. >> larry? >> i agree with a lot of what brian said. i don't think anything's really changed. in other words, look at the jobs numbers, you look at isms, okay okay 2.5% growth. the retail sales number was lousy today. i wouldn't put so much stock in. i think investors are trying to figure out the earnings story, have the analysts over -- gone too far on cutting earnings estimates? >> and i've got to tell you, i am rooting for this trade bill which i think would be terrific for business. cut tariffs is like a tax cut, pacific rim, u.s. that's the hottest place in the world today. i think that would give a booster. we're not going to get my

corporate tax cut. i've thrown in the towel. but trade, yes, pro trade, free trade. >> to be clear, you've thrown in the towel on corporate tax overhaul? is that true on capitol hill at this point? >> if you talk to senators and house members of seniority and they're honest answer's yes. >> hold that thought. first of the earnings we're waiting for, shake shack is out with their second earnings report since going public. let's get right out to dominic chu. >> what we've got right now, seeing some muted reaction here in the stock overall. shake shack, you can see here up about 2 3/4%. i can tell you trading is light right now, about 30,000 shares traded so far. earnings per share coming in on an adjusted basis, 4 cents, 4 cent profit per share. expectations were for a loss of 3 cents a share. a beat there. they also come in with revenues of 38 million, that beats the average analyst estimate of $34 million. full-year revenue guidance may

be on the conservative side they say that full-year revenue guidance between 161 to $165 million. analysts on average looking for $165 million. slightly below expectation. nonetheless, 3% move although we should point out on just around 30 some odd thousand shares trading. we'll see if that picks up and if the price action gets more active later this afternoon. >> thank you for now. interesting, sales up almost 12%, a company relying on location growth. even so doing great numbers in the locations. >> very consistent with the retail number that we saw today even the retail sales were down. seems like the consumer's undergoing a shift and shifting where spending their dollars. they're spending dollars on food and drink. i don't know what that says about the consumer but apparently they're enjoying having food and beverage. we saw that in the past.

weave we're seeing that now. where the consumer strength is it it seems to be especially in the fast casual segments. >> that ipo still the best performing ipo of 2015 according to s&p capital i.q. up 225%. not a bad performance. shares trading after hours on the news up almost 4%. >> the food's good by the way. very good. very popular. pals of mine i've been there oncern pals of mine go all the time, they line up. they've got a good product. one point, retail sales excludeing gasoline up almost 4%. >> on the year? >> yeah. 12 months. it it ain't the greatest but it ain't the worst either. >> this goes back we were talking about corporate tax reform and corporate profits. looking at the budget numbers, another way to gauge how strong companies are doing if you will the corporate tax receipts larry, 16% on the year. >> their profitable. >> that's pretty good.

>> they ship a lot offshore. what happens on shore is a good number until recently. a high number it's just flattened out. yeah paying taxes. corporations pay their fair share. 1% pays its fair share. you know what? if you lower the corporate tax rate the wage earning would be the biggest beneficiary. but i agree, the economy -- we're not going into recession. stop that don't even think about that. >> let me break in right there. cisco results hitting the tape now straight out to josh lipton with the results of this big blue chip name. >> reporter: kelly, cisco just reporting. cisco reporting 54 cents on $12.14 billion. street was looking for 53 on $12.07 billion. a beat there on the bottom and the top. in the release, chambers john saying that he's extremely honored and proud to have led cisco for the last 20 years. and to get us he says to this positive inflection point we have a tremendous opportunity, he says to extend our lead in

the industry. the conference call starts at 4:30 easternen on the call we'll be looking for guidance. year-over-year growth rate in product orders capital return plans, also any color on the emerging markets, a lot of questions on that call. we'll be on it and bringing you headlines as they cross. back to you. >> josh great stuff. jon fortt, quick reaction here? >> one of the best numbers out of this record is gross margins that came in at 62.5%. cisco guided to 61 to 62. so that suggests some pricing strength. considering cisco came in high end of the range, top end of the guidance range on revenue 12.12 billion. came in at 12.1. last quarter they said service provider and emerging markets were not turning around but positioned for that should they turn around it will be interesting to see what they say this quarter, any closer to seeing a turn there because if so it could be positive for them. but you also want to hear

routing and switching, new products really what's providing this boosting? cisco tends to be conservative in their guide. any areas that fell short here in the report that have them just beating on the top and the bottom? >> went to bring in dan for his early thoughts on this one as well. to jon's points and what you're looking for in the numbers, what do you see for cisco's prospects. >> jon spoke to it a bit. i i think it's a step in the right direction not just cisco. we saw with ibm, now cisco, battle for the next generation data center. investors are figuring out which large cap tech names could win it and this is one with handing the baton, chambers at this time investors feel like there's a bit of a renaissance going on on the large cap tech names. >> jon why is it that cisco might be let subject to disruption? we've been talking about the cnbc disrupter 50. not a lot of names on the list

sound like they're going to topple cisco are others out there. >> fireeye, a product cisco sidestepped, now working with fireeye. one of the big dangers for cisco, cloud provider like a facebook that can afford to do its own network equipment, white box style, demand the design that it wants and then open source that and put that out in the marketplace. what i'm hearing inside the network analyst community that is cisco's working closely with facebook on this white box program so they've got their intelligence in there, they're not letting go of. facebook participating with them. so i think cisco's being pragmatic and preventing the disruption from taking hold. >> we'll come back to this in one second. jcpenney results, though. separately, they have been highly anticipated. courtney reagan brings those to us. >> jcpenney's first quarter, the retailer reporting a loss of 57 cents, that is better than what wall street expected which was a

loss of 76 cents per share. revenues, a slight miss coming in at 2.86 billion. wall street looking for 2.87 billion. same-store sales for the first quarter, up 3.4%. wall street consensus for growth of 3.9% and that was after jcpenney told us on april 14th expecting a rang of 3.5% to 4.5% for the comp store sales for the first quarter which means it shot both wall street's consensus and its own estimates short. but if you look at guidance for 2015, jcpenney now increasing its comp sales guidance for the year to a growth of 4% to 5% from 3% to 5%. also says it it expects gross margin to improve between 100 and 150 basis points better than previously -- than the previous guidance of 50 to 100 basis points. also expects to decrease sg&a by more than previously expected.

>> jcpenney shares slightly positive after-hours. we've spoke been already where it may be taking share. carol, going back to the cisco numbers what do you make here if we home in on one area big name dow member company where they've been highly inquisitive, trying to acquire some companies that may be getting into their space, right strategy? >> inquisitive and well positioned for the internet of things which is one of the things that investors are going to look for in terms of multiple expansion. they have a nice dividend. you look where this company's priced, it seems to me it's fairly reasonably priced i wonder what daniel ives has to say about that. given where cisco is trading, the pragmatism jon was talking about they do have positioning in the internet of things the fact they're paying a nice dividend, is this stock a bargain here? >> yeah, but i think right now

around m&a and where cisco fits in as well as oracle and emc and ibm i believe there's going to be i surge. m&a, cisco factors in there. we look at cybersecurity, names like fireeye that would fit in well. it's all about fueling the engine. that's what investors want to see in large cap tech. i think that's a key question going forward for the new ceo. >> for sure those discussions, people talking, we should say, anyway about who they might be looking at next. b.k., we have to go in a second. final word here what happen are you watching for tomorrow? is it the companies we've just heard from or something else? >> the goodance from the companies, what they're saying about global economy, that's the big thing. watching the bond markets from japan to europe, that's what's driving the markets. as soon as you wake up you have to watch those numbers. >> all right. thanks, everybody. we'll leave it right there thank you you, dan. catch brian and the crew.

greg butterfield, why that stock dropped on earnings that's coming up windy city getting a downgrade. moody's cutting chicago's debt rating to junk. what will it mean for the bond holders. is chicago in danger of becoming the next detroit? one is the loneliest number. facebook liking minimum wage increases today. pushing vendors paid $15 an hour. we'll see how many other people are liking that idea. you're watching cnbc, first in business worldwide.

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the city of chicago taking a big hit with moody's investor services downgrading its credit rating to junk status. the move comes after the illinois supreme court moved to overturn cuts in pensions. joining us now, richard, dealt with budget challenges and credit concerns as head of the metropolitan transit authority in new york city and lieutenant governor of new york. welcome to the program. before we get to that though sir, what do you make of the amtrak derailment? does this speak to the need for more infrastructure spending? the tragedy, i gather was caused by excessive speed on the train.

that doesn't mean that we don't have serious infrastructure problems. the road bed has not been fundamentally changed in -- since the private railroads owned it and it went bankrupt. amtrak desperately in need of infrastructure investment. i cannot say the absence of it caused this accident this tragedy but it will sure cause more problems and more delays because the disinvestment is very, very significant. >> we do know as reuters is reporting, positive train control technology that would automatically slow or halt trains that are speeding. amtrak's supposed to have it across its system by year-end and did not have it in this case. infrastructure issue should even if there's driver error involved, overcome that what more do you think needs to be done? >> well i believe that the infrastructure needs of every part of this country are seriously underaddressed.

we amorized more public debt than created. the mta which moves 7 million, 8 million people a day in new york is dramatically underfunded. so far the state government has done nothing to close the $17 billion gap in the essential investment for the capital plan of the mta. >> bringing in a resident in chicago, carol roth here? >> for from my perspective, the grounding is really about leadership doing a very poor job, not about needing more money. whether talking about the infrastructure of america or talking about chicago and illinois, the people that we have elected have not done their jobs. the frustration as taxpayers is there's no recourse. they have underfunded liabilities, they've made poor projections, some cases didn't some subject things with the funds and there's really nothing that we can do.

i think that that is the frustrating part of being a citizen whether it's of chicago, illinois, or of the united states of america. >> sure. jon? >> it seems to me that the fact that rahm emanuel got re-elected at least is a beacon of hope considering what the folks he was up against were saying about the money that they wanted to spend previous chicago mayors had given away the store, it seems, as far as spending money. but this moody's downgrade at this particular time seems really damaging to what emmanuel is trying to done i wonder what are the options at this point? you've got to raise taxes. >> richard. >> you don't have to raise -- >> hang on larry. >> can i jump? it's larry kudlow. i want to ask you, you've got a moderate mayor of chicago, he's not a free-spending left-wing mayor. a pro-business republican in the state house. to me, richard the issue is this goofy supreme court decision. states across the country have amended and changed, you know the co-pays and the

contributions for pensions and health care. why can't illinois? i blame this on the court. and i'd appeal the decision. >> well, i have to two things. one, i think to most people in this country a promise to pay interest to somebody who lends you money is morally indistinguishable from a promise to pay a benefit to somebody who works for you for 20 years. second of the courts around the country are split on the extent to which you can modify pension benefits for existing employees for unserved terms. this decision is not a shock. the fact of the matter is i think that rahm emanuel is as you suggest, willing to make the tough decisions. he inherited a mess. he inherited a city located in the state, that disgraceful reasons for years covered operating deficits by borrowing

money. >> you know -- >> they were never willing to level taxes sufficient to meet the expenditures that politically they thought were net or desirable. >> larry what can you do besides raise taxes? >> richard, as you know illinois is, i think the highest taxed state in the country. it has the highest income tax in the country. a very high corporate tax. the reason you got a republican governor because of the illinois tax situation. what i'm trying to say to you issing i don't know if the courts can be reversed or not but the issue is changing the benefits and health care not for the last 20 years, i agree, you can't damage that bond but for the next 20 the next 30 the next 40 years, there has to be co-pays maybe go to 401(k)s, modernistic reforms. we can't wait around for that. the tax rate i think, is it 10% in illinois. >> we have people leaving our

state in drove. you absolutely cannot continue to raise taxes otherwise people will -- >> what do you do? >> excuse me. you are factually -- >> richard. >> you are factually incorrect. illinois does not have the highest income taxes. >> second highest. >> new york, new jersey have higher income tax rates. four years ago when illinois was paying trade creditors by borrowing the money the governor got the legislature to increase the income tax from 3 to 5. that sunset the december 31st and because the new governor was adamant about extending it it disappeared. that, by the way, will cause unbelievable harm to the schoolchildren in illinois and in chicago, of course. >> we have net people leaving the state. i live in the state. we have net migration out of the state because of the tax situation in illinois. >> i respectfully suggest that

that united states a problem that this country faces. we inherited massive retirement obligations that were honorably and legally entered into and we are now disinvesting in our future. >> they were not honorably entered into. >> but this united states a problem that extents beyond chicago. we'll continue the discussion, leave it there for now. appreciate it. >> facebook giving its thumbs up in the fight for '15. giving contractors minimum wage boosts to the $15 an hour and a handful of new benefits. kate rogers united states ss is here and will join us.

workers in this country are struggling. they're barely getting by and ceos, the new royalty in this country, got a 16% pay increase last year. we need to have the worker the ceo rash yo explained and disclosed so that investors can look at it and decide whether those ceos are paying their workers fairly. >> that of course afl-cio president richard trumka talking about increasing worker pay. facebook founder mark zuckerberg is joining the fight to raise wages and improve benefits for workers. kate rogers joins us with the details. >> if you're a vendor or

contractor and want to work with facebook you're going to have to pay your workers at least $15 an hour. that's $6 above california's minimum wage. also are to offer 15 paid days for vacation sick leave and holidays. workers who do not receive paid parental leave, facebook is setting a child benefit of $4,000. facebook will pay for the program when vendors increase rates. in a blog post sheryl sandberg said the benefits kicked in may 1st for larger vendors and the company will work in the next year with a broader set of vendors to implement these changes. a spokesperson told me they worked with vendors so it wasn't a surprise. facebook not the first company to do this big corporate names like wallmartwalmart, the gap, t.j. maxx hiked wages but few have extended wage hikes to their vendors. >> vendors include, i'm trying to figure out now many janitors, cooks, people who might be encountered in

facebook's operations about you -- >> temp workers, consultants, i did ask their spokesperson how many people this would impact. how many vendors they have and they declined to say. >> can i ask a technical question? it's humanistic of facebook to take this position. are they going to pay vendors the equivalence so they can raise the minimum wage or take it up 15% for a payment so that vendors can pass that along in the form of raises or does money fall out of the sky? >> i don't think money falls out of the sky. they're telling vendors without saying we're terminate that contract, i asked them that too will you terminate, but telling vendors who want to work with them -- >> with what resources? what resources? with what resources? you can't make it happen. i'm sorry. >> if i'm a small business and i'm a vnder working with facebook is it just those people i'm placing in facebook or is that across the board? as a small business owner, you don't have the band width to

make these changes for companies you're working with not like facebook who aren't willing to go with the raises -- >> workers you're splaying to facebook. if you have 25 or more employees that do a lot of business with facebook. >> what's interesting about this, i think microsoft mandated that contract workers need to get 15 paid days off, apple just -- not privatized but said it's going to take security workers in-house instead of having them contracted out. there's a lot of pressure in silicon valley certainly and in tech for technology companies to share the wealth and not create this blue collar structure where people are underpaid, whether they're the bus drivers, shuttle bus drivers, people who cook people who do security versus engineers. it's interesting that this is happening on a case by case level with huge corporations versus the statewide or even nationwide minimum wage. >> i'm fine with it. >> the answer larry, will vendors turn around and charge x

percent? >> facebook says they'll absorb the cost if that happens. >> if facebook wants to gross them up that's fine can talism. at least the debate is in the private sector and not the federal government dictator. >> that's to come later. >> kate rogers. cnbc news update with sue herera. >> here's what's happening at this hour. the jury has begun deliberations to decide whether convicted boston marathon bomber should get the death penalty or life in prison after lawyers gave impassioned closing arguments. a man suspected of attacking four people with a hammer this week was shot by police after he tried to attack two officers. he was taken to the hospital in critical condition. walmart will test a new unlimited shipping service for online shoppers this summer that will be priced below amazon's $99 per year prime service. the company telling a.p. it will cost $50 a year and the products

will arrive in three days or less. george clooney joined astronauts at a texas gala last night to celebrate the 450th anniversary of the apollo 13 mission, launched in april 1970 but aborted after an oxygen tank exploded preventing it from its moon landing. level commanded that mission. back to you, kelly. thank you. if at first you don't succeed, try again. that's just what president obama's been doing in the last 24 hours in his plans to fast track the trade deal trans-pacific partnership. new developments from capitol hill. later, people who have used crowd funding websites from saving animals to creating new products, one woman using funds to get her masters at an ivy league school. gone from homeless to harvard. she'll join us later, when "closing bell" continues.

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welcome back. the cad imbetween democrats and president obama over the trade bill seems to have a bridge built on capitol hill. john harwood following the story down in washington. what's the latest, john? >> reporter: kelly, yesterday

president obama and mitch mcconnell suffered a set back when democrats blocked them from taking aprile ging up a trade bill. today they turned that around. now obama and mcconnell have to round up votes to win that debate. give me a verbal diagram of how you guys get on the goal line on this. >> the white house is in charge of the democrats. we're going to have most of the republicans, and i'm optimistic. i want to compliment the president, the way he took on the base elizabeth warren the labor unions. >> reporter: the key change that is likely to be made that's gotten over the hurdle that appeared yesterday is that the currency provision that would require a crackdown on government currency practices that chuck schumer, the next democratic leader succeeding harry reid insisted upon is likely to get thrown overboard in the final consideration. >> thank you. en we are joined by senator tomorrow carper, he's a democrat

from delaware the only democrat initially backed the bill in that vote yesterday. were you surprised to be left out there on your own? >> no i expected. i'm not surprised. >> what happens now? i mean are you in conversations with your colleagues on the democratic side to try to bring them to the table and get this thing passed? >> i think the most important conversation occurred yesterday afternoon for two hours in the white house. the president invited over a dozen or so democrats who believed to be pro-trade, and gave us a good tutorial on chinese currency manipulation the fact that the chinese manipulate their currency for the last ten years, less so almost every year. the michltimf prepared to say they don't believe the chinese are further manipulating the currency and it's appropriately valued the president made that clear. 95% of the world's customers live outside of our borders, a lot cover,ed by the trade agreement and we need to sell it to them there a couple of factors here as i try to understand the vote and what's

going to be in the bill that's a sticking point. they include assistance for workers who would be affected by loss of jobs taa, as it's known. tariff discounts for africa and developing countries. the enforcement piece, ease customs procedures what people are referring to. are these three planks important for you to include to move forward or potentially going to derail it? would you prefer to see the core piece of the legislation advance? >> no youthe piece you've outlined the piece we voted on committee strong bipartisan vote, i'm a golden rule guy, treat other eem the way you want to be treated. if i were in a job or occupation where i lost my job, i'd want help in job training health care. this legislation does that. we want to make sure there's enforcement to ensure that we don't just talk about protecting workers in other countries, we don't talk about protecting the

environment we have the able to enforce it. that is in there we realize that you know 535 people can't negotiate with all of the countries, a trade agreement. got to let the administration do that. we express our views through trade promotion authority legislation, this is what's important, so our trade reps say to the countries, this is not just our trade rep talking, this is the congress this is what they want. >> i want to ask you about the amtrak derailment in a second. first, on the trade agreements whether the trans-pacific or others, is there any doubt in your mind these trade bills are good for america? >> again i'll say what i did before. a lot of people 95% of the world's customers live in other places they don't live here. for years we've let other countries sell into our country without impediment. the idea of a trade treaty allows our goods to be sold into the other marks. that's where the customers are, this makes sense. >> a house committee voted to

defund amtrak to the tune -- i shouldn't say voted -- moved forward a bill that would defund amtrak $250 million. this from its capital budget. can you just react to that in light of last night's fatal wreck and whether you think amtrak needs to have more funding going forward? >> i was on the train last night, the train that wrecked 30 minutes after it dropped me off in wilmington. i was on the amtrak board as governor of delaware. but, yeah, we are making a huge mistake not investing in transportation, whether roads, highways, transit systems, inner city passenger rail service. you can't be a great country unless you make investments. throughout the nashgs we're failing, we are to do better. otherwise we're not going to be i great nation. >> you were on the train. say what you said. you were on the train. what happened? >> i was on the train, i got off in wilmington delaware. i go back and for every day and night.

said good-bye to people on the train. a i know a lot of the on board personnel and customers. i'm going up after work and try to see some of the families this evening in philadelphia. >> wow. so truly hitting home. again, amtrak as well being in your home state. north tom carper thank you for joining us. >> thank you. >> appreciate it. alan greenspan, meanwhile, at it again. former federal reserve chairman warning about a taper tantrum. the cnbc website had i fit of its own cracking the hot list that's next. eat or get eaten when in the new york city restaurant game. cnbc going behind the scenes to find very different establishments here and a new docuseries to succeed in the cutthroat business. two brothers struggling to keep their restaurant afloat. more on their story when we continue.

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pictures are shocking and the story's tragic. cnbc.com readers have been looking for answers to the amtrak crash last night. for more on top stories, let's check in with allen wasler. >> center of attention for readers today. the amtrak tragedy with the loss of life and the damage thereof of we've had coverage including looking at infrastructure issues budget issues including your column on the subject, kelly. and looking at amtrak accident rates. that's been a big, big source of interest for readers. beyond that we had feature looking at google. apparently changedite algorithm

and of course where you appear in google search results means a lot in terms of what kind of traffic if you're running a website you're going to get. we found one website owner lost 22% of traffic because of the change. it's raising questions about how fair is it what's it looking at. beyond that alan greenspan, he gave a talk down at a conference in d.c. and he said hey, we're set for another taper tantrum because the bond market is going to react no matter how the fed raises rate how softly or hard it does it. everybody just brace yourself, he sees more bond volatility ahead. those are the top three attractions on the site. >> thank you so much this hour. appreciate it. hold that thought. she's going from homeless to harvard. tony morgan vice principal at high school told her she's never get a college degree and she's done that. training her eye on a master's and paying her tuition with help from a crowd funding site go

fund me. she'll join us next.

there is an ancient rhythm... [♪] that flows through all things... through rocky spires... [♪] and ocean's swell... [♪] the endless... stillness of green... [♪] and in the restless depths of human hearts... [♪] the voice of the wild within. welcome back. here's a crowd funding story that's headed to the ivy league. tony morrison financing her way to harvard using go fund me and get this the student raked in over $78,000 foreher tuition,

all this overcoming homelessness since age 17 dropping out of high school after her vice principal told her she'd never get a university degree. amazing story. toni joins us now to discuss it it. >> thank you. >> congratulations. >> thank you. >> on everything that you've accomplished. >> thank you. >> when did you think that crowd funding might be a way for you to earn your way to a master's? >> actually my friends did. it was -- so i kept the whole getting accepted thing a secret and thought i wasn't going to tell anyone until i had a plan as i do with everything else. you know how to get their finance my education, i finally broke and told them they said this is incredible we've seen all of the work that you've done, set up a crowd funding campaign, i'll pish in a few bucks. >> you've raised over $90,000. >> yes. >> go fund me takes a good bit of that. >> they do. >> how much? >> 7.9 -- 5% plus 2.9% plus 30

cents for every transaction. >> approximately. >> you are my new hero. you were homeless told you weren't going to go to school applied to harvard, found a way to pay for it yourself and as i was reading your campaign you said that you faced your biggest fears, for people out there who are feeling fearful, what can you say to them? how pivotal is facing those fears in being successful? >> i think -- i mean it's still -- i can't believe it happened but for me the way that -- the only way i felt like i could face my fear was to do it alone. so a lot of people say you need your community beind you. i knew if i fell my community would be there to help me friends and supporters, but i needed to face it head on. i kept hearing voices in my head and thinking about all of the times that i had -- my vice principal or teachers say you're not going to amount to teachers or administration say, you're not going to amount to anything, so

you might as well give up on the school thing. i kind of had to take a breath and -- >> you said in this article -- i mean, god bless. this is one of the greatest stories i read in a long time. i will live on a park bench if i have to attend this school but i need your help. that's so much character and responsibility and determination, you are such a role model. just to say that, and i believe it, looking at you and listening to you. for me it is fabulous. fabulous. >> how could a vice principal say that to you? how could a teacher say that to you and how is that influenced the fact that you want a masters in education? >> so it's interesting because after that experience all of my work was in community -- working in communities with at will of other people who had -- with a lot of other people who had the experience who wanted to go back to school instead of being on the dead end career track.

i met a will of administrators who place their judgments on the people. even if they want to get out of the situation we're not going too help that. so it's -- it's sad, but, you know, the reality is that there are -- there are administrators who don't see the potential in people and they're there to keep of push the paper and, you know, check off boxes and not really develop or look into the potential of an individual. >> and just real quick, what's it going to mean for you coming out debt free as opposed to many millions of students who would have otherwise had to take on large amount? what does that mean for your future prospects and what you're able to do? >> it means i have to devote my whole life to public service i think. i'm definitely going to be in a much better position than, you know, even some of the -- of my classmates who i know who have received some aid. they're paying off debt you know, i'm -- i get to jump straight into the workforce and do that work without that burden of debt. >> toni, congratulations again. thank you for sharing the story

with us. toni morgan here at post 9. coming up next hear from two brothers who are struggling to fill seats. they're part of cnbc's new primetime docuseries called "consumed" at 10 p.m. see if larry kudlow can turn things around for them. >> i've got a spot for them.

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welcome back. no doubt the restaurant business is super tough and in the big apple it can be even tougher. cnbc is taking you inside that business with the new series called "consumed, the real restaurant business." here's a sneak peek into the kitchen of ann and tony's. >> if you decided to cook the food in a timely fashion once in a while -- >> we do cook the food in a timely fashion. >> i bring the people in. >> you don't bring the people in. look at that [ bleep ] dining room. >> you don't follow through on your end. i'm waiting for joe's table -- >> no. no. how about this? you go home now and everybody else can stay here. you leave. >> that hurts me? >> well you do want to go home. key it up, key it up. it's 9:30 at night, we close at 11:00. >> no, you have to come one the

rent. i bring the person in here. >> here we go again. >> i don't want to hear it again. [ bleep ]. go home, go home! >> all right. i'll try not to stir anybody up. with us now are anthony and ralph, co-owners of ann and tony's. welcome to new york stock exchange. >> thank you for having us. >> this is an extremely tough business and what is most challenging to you guys and how much help to you need in order to turn it around? >> most challenging is getting the customers to come back a second and a third and a fourth time. that's what we try in our business. we have generations of customers that come to us. we are a four or five generation that come to us. we have customers that come to us for four or five generations. >> ralph? >> bringing the grandparents and bringing their children and the biggest thing is getting the new customers in. it's a different landscape today.

the restaurant business. people are looking for trendy. >> i got trendy for you. >> what? >> my wife is a painter, an artist. there's a whole community in port morris. they're -- >> in the bronx. >> in the bronx, right. right near the randall's island. a little foot bridge randall's island is being used more. they're opening up some small restaurants. you've got a great marketing opportunity. >> find -- >> curtis sliwa, my radio buddy. >> we'll bring back the old school tradition. that's what it's all about. >> i talk to entrepreneurs and would-be entrepreneurs. everybody wants to start a restaurant company. no matter what. it's the number one business idea i always hear. what kind of advice do you have to would-be restaurateurs? what is the surprise that they should be in store for? >> we talk about this all the time. just because you walk into the restaurant and open the menu and say, they're charging $18 for a dish of pasta, we'll be

millionaires. they just see the fun. >> they forget everything else. >> everything that real -- they forget. back in the kitchen. >> yeah. >> back when the bills come. back when the city comes and they want to hit you with the fine. >> so is technology a help to you or is a it hindrance because people gets the options that they didn't before? i think it's good and bad the technology because people, you know doing online reviews. but a lot of times online reviews are very subjective. they say, well, this place stinks. >> you are online? >> yelp. if you check out the yelp reviews you'd laugh. >> what's the specialty tonight? >> anything -- >> come in tonight, you'll have a nice chicken, stuffed chicken and prosciutto. >> any fish tonight? special fish? >> of course. stuffed fillet of sole tonight. >> who does the business and the marketing for you guys? >> he does that. >> i do a lot of the marketing

stuff. >> are you doing social media? >> i do a lot of that. we do fill the place up a lot. >> do you find -- >> facebook is the most valuable for us. >> really? >> i have done a lot of promotions there. i have got a good return on investment from facebook without a doubt. >> did that surprise you, john? >> it doesn't surprise me. groupon has turned out to be bad. >> i'm not do -- i'll never do groupon. you know what? people are looking for a bargain with groupon. it doesn't necessarily mean they're looking for a particular place. so it's kind of tough. you lose a lot of -- it's profit. dollars and cents. >> yeah. well, they should do it. >> anthony and ralph, we'll leave it there and look forward to seeing much more later. >> watch the show. watch the show. >> we certainly will. >> now i'm hungry too. >> tonight at 10:00 p.m. >> see, they're business guys. thanks for being here. thanks to the panel. that does it for us on "closing bell." "fast money" coming up if a few minutes.

what's on tap? >> we have a report with the ceo. >> i can't wait to hear what he has to say. over to you guys. >> live from the nasdaq market site, this is "fast money." i'm melissa lee. our traders are tim seymour, dan nathan and brian kelly. monster moves after hours from cisco, j.c. penney and plus the latest results from the slew of clinical trials coming out of a's coe right now. plus we're monitoring the ntsb press conference on the tragic train derailment in philadelphia. but first, we start