price which they had in november. >> you kind of got hurt by that black cloud that surfaced over the cost of labor going forward which is a huge problem for wal-mart and mcdonald's and etc. >> that does it for us. see you tonight at 5:00 on fast. power lunch begins right now. >> tyler is off today, but as you can see brian sullivan is filling in his big shoes. more than 50% of the past year is apple still undervalued. out with a new letter saying the stock is worth $240 a share today. is apple a big buy? >> the dow hitting an all time high today but traders wondering will stocks break out or the summer break down. >> banking on the banks. they rallied in the past one

month. the biggest trend and some of the mid-cap banks that you might be wanting to buy. hello, everybody. it's a big news day here on cnbc, but a big day in downtown for a group of high school students. steve liesman is live as he prepares to crown the top mind. >> now there just 16 remaining and four teams. i have four on each side of me from high schools from around the country. we are going to crown the next bernanke and yellin and the next economic professor. they will humble and astonish you when you come back and hear some of these amazingly smart kid at how much they know with economics. back to you. >> we are looking forward to that and it will be a great

event. steve, sit tight. i know you have a lot of smart people there. apple shares are up 18% and more than 260% in the past five years. investor who made a ton of money betting on apple is carl icon. that stock is dramatically undervalued by his analysis. josh i guess uncle karl decided it was time to cent him another letter. >> that's right. in his open letter to apple, ceo tim cook said apple shares are worth $240. that is 85% more than they are trading at today. at $240 a share, apple's market cap would be $1.4 trillion. right now the company's market cap stands at about $750 billion. in his letter icon told apple to boost the buy back problem. apple announced they are

expanding the return program to $200 billion through march of 2017. the billionaire investor sees big catalysts ahead. they think the tech giant will enter new product categories televisions and cars. these represent 2.2 trillion or two times the size of the markets. rumors have been circulating. we don't know if icon has information, but he has done the math and said apple can enter the new growth markets and have plenty of cash to return to shareholders. he did not immediately respond to a request for comment. back to you. >> interesting story there. overall it may be the quietest record of all time. the dow hit 18,297. even with the move, more seem to

be wondering if a break down is in the cards. what are they concerned about? >> classic dow theory. i want to show you what's going on. look what's going on elsewhere. the dow is at a new high. the transports are down. they hit highs at the end of december. # look how well the leadership held up. health care names like unitedhealth stocks and disney and the consumer stocks doing well. the do it yourself group and great leadership. economy is improving and dow is reflecting that. the railroads and the transports and the airlines have had a tough time. railroads on the weird moves we had in commodities. oil rebounded and certain things are going on. the question is are we at a market top?

tracy knudsen from lowrie was here she doesn't think so. we don't have the signs. we don't see a big increase in buying pressure and the advance at the timeline that normally deteriorates. that hasn't happened and we are here new highs on that. we are not seeing a lot of new highs on a daily basis happening. you want to see that for the bull market and they can advance a little bit more. it's on the inconclusive side and no signs of imminent deterioration. they rallied on the promise to reform the country. they team to be running out of

steam. are investors losing faith in the title deliver? she has more. seema? >> the top performing emerging market, but one year later they are growing impatient with the many who hoped he would be the ronald reagan of india. down about 6% over the past three months. some say he is spending too much time traveling around the world most recently seen in china and taking a selfie with chang. leading them to believe he is prioritizing foreign issues to issues at home. they are slowing down the ability to reform and pass bills. they recently downgraded to under weight to overweight and you can kiss that goodbye. that is seen as an especially

part going forward. despite the challenges he has made progress. a multibillion project and long-term india's bull case and they are getting the political constraints. they are judged over five years versus five years. this is a marathon not a sprint. back to you. >> thank you so much for that. live from london. showing cell phones are involved in an estimated 27% of all car crashes. that estimate increased for the third vat year. the nsc is releasing that survey here on power lunch. welcome back to the show. i didn't think anyone would be surprised by these findings. the question is what do we do about it? >> that's the challenge.

people are not surprised because they see so many people doing it. what they need to do is talk about the things that business leaders are doing. they are leading the way. we have eight million innees who are covered by bans that have been commuted by employers. some of the largest companies in the u.s. exxon-mobil led the way and we have so many companies doing this. it's not just about safety. there is liability issues and it's good business practice. again, to mandy's point, you don't need a survey about this. the number of fender benders is of control. one or two every day. the roads are getting jammed up. you gave ideas but how soon can we fix this problem? as a frequent driver it is only getting worse. >> i think when you talk about

the weighing between productivity and safety and we know that those crashes cost to everyone. we talk about technology being a challenge, but it's the key to the solutions. what we are seeing now is ever more technology in cars. we are getting to the point where we have collision avoidance technology in cars and i do think when it comes to cell phone or in vehicle device use, anything that is nomadic or in vehicle, we will get smarter about that and technology can prevent the driver from being distracted. >> do you think the mother of all technology, the self-driving car, the surveys will speed up the move towards eventually getting the regulatory environment in place towards a situation where we do have them on the roads? >> whether it's google or nissan, their commitment about

self-driving cars and we know there is opportunity for this in the future. i hope that there is the potential to accelerate the safety validation that needs to go on. it will help us with distracted drivers and also fatigue and drunk drivers and elderly and teen drivers. >> you missed a chance. this was the perfect opportunity. they talked up the alma mater. virginia tech. we are both graduates. we have classes together but you probably don't remember who i am. talking on the phone is more dangerous than texting. it has been proving that talking is as dangerous. that may reflect the penalties. studies show that the driver capability is about the same. >> you are absolutely right. people downplay how distracted

driving results in fatalities and injuries and crashes. that's to make sure people understand a quarter of the crashes we believe are caused by this. we have to increase the cost about good education and laws and enforcement. >> all of the above. best of luck and thank you very much for joining us today. for more on cell phones and car crashes, you can go to power lunch. the most interesting thing is that estimate of 27% included hands free cell phones. it wasn't the ones that you were holding. >> as a guy with a long drive, cars are weaving all over the place going 80 miles an hour. it's unbelievable. check out the financials. they have been rallying and the big that tracks them is the xlf. they have done well up almost 3%. is it time to buy the mid-cap banks?

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>> let's begin the final round of the national economics challenge. everybody ready? here is question one. you guys know what the rules are. facebook did not exist. there more than 3.5 active users. # what category do they place mark zuk berg? >> moving on to question two. in terms of nominal u.s. dollars, the international

monetary fund's world economic outlook ranked which economy the third largest at the end of 2014? >> you have 15 seconds. >> germany? >> that are is incorrect. steve, you may reread the question. >> listen carefully. in terms of notenal u.s. dollars, the world economic outlook ranked which economy -- >> we will get back to steve liesman. exciting there. >> ali ba ba is being sued over sales of counterfeit goods. they accuseded online retailer of knowingly making it possible for counterfeiters to sell their products. they said they would fight it

vigorously. elsewhere, las vegas sands are lower, citing tough challenging for the company. the united states and the parent of ann taylor and loft will be acquiring. they are among the brands currently owned. up by 18% to the downside. the ceo will be on tonight on mad money with krim cramer at 6:00 p.m. eastern. >> the sector up nearly 3% in the past month. a new report suggests potential problems especially for the biggest universal banks. fred cannon is director of research and his firm out with a new report talking about the fragmentation of finance. he joins us and we know you are not a single stock analyst. as a company you have ideas, but

what's going to happen with the big banks? they have only gotten bigger. are they going to shrink? >> if we look at the market share, the big banks, the ones we think about are shrinking. the share of total financial and assets are back to 2000 levels. as a market share, they are back to the size they were before. jpmorgan and wamu and wells fargo. this is opening up tremendous opportunities throughout the financial sector to start chipping away and taking pieces that was business. >> we look at the biggest banks and say how are they going to get smaller? how are they going to become fragment and which sectors are likely to come out victorious? >> it's a death by a thousand cuts. they have to hold a lot more

capital and regulation. you are starting to see them divest. you are adding but net-net we have seen them over 200 companies while acquiring around 100. you see this especially at citi and bank of america. they are not selling right away but in small ways. when city sold off, spring leaf picked up. it's a lot of non-traditional banks. business development companies or commercial mortgage. everybody is starting to see this as a huge opportunity. big the big banks control the assets. >> what are the picks on your list that might be the best beneficiaryies of the trend over the next 12 months. >> what we are seeing are the smaller banks that are showing growth. i lookedality the signature and

private bank oust chicago. that's a great opportunity. also the rates and what they are finding is the regulations are starting to squeeze out commercial mortgage lending. you are seeing colony that we put in the report as real beneficiaries. finally the managers u the kkrs and the oak trees of the world are a great play over the next not just year but to five years. >> interesting stuff fred. thank you very much. >> great to be on. >> let's go to courtney reagan for a market flash. >> moving higher on headlines coming out of the global health care conference in boston. as reported first, the ceo said the biopharma company will not implement to fend off a take over pill from myelin and they expect it to make a tender offer by the 14th. this is up about 2.1% or so. back to you. >> courtney reagan. three years ago today, facebook

was marred by a disastrous ipo and a mobile problem. they wonder if the giant could even adapt to the ever changing landscape. how things have changed. now it's a strong mobile presence and big acquisitions. what is next for facebook? what investors need to know, next.

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least 500 people both civilians and soldiers in the battle for the city. retreating on sunday this video posted shows isis fighters battling soldiers. it has not been independently verified by nbc. they believe isis will not hold ramadi very long. >> it is possible to have the kind of attack we have seen in ramadi, but i am coni have dent that will be reversed. >> oil not moving much on the news and not physically close to the major facilities or fields in iraq and also the government saying they killed a major leader who is also the man believed to be in charge of the terror group's oil operations. >> let's take a look at oil prices. if you can bring up the board, we will show you where we are sitting. at 12:27 at the close.

gold has risen for five straight sessions and gaped about 3%. one of the best weeks and months. silver and platinum moving higher and copper and palladium are down. rick is tracking all that action at the cma. what are we looking at at the start? >> it hasn't been an aggressive session, but we settled. we ton move closer and closer towards the 2.25 level. if we look at this that settled at 293 that's up seven basis points as well. to make sure you realize, we are 25 basis points higher than we closedality 275 at the end of last year. the 30 says continue to steepen

that augers for the long end and has something in its mind and is in stronger growth pushing the rates higher. if you look at the dollar yen, maybe it's out there. it keeps getting tighter and the last chart, chicago may be poisoning the well with regard to munis. we will be talking about the issues and look at the mub and the etf. starting in july of last year. that was the last time it was down at these levels. >> thank you very much. today marks the third anniversary of facebook's ipo. a lot has changed and the stock has more than doubled. making deals and grow ad revenue. we will hit what is next for face back. if you are planning to go to the hamptons, listen up. the major battle is brewing that might impact.

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hi everyone. i'm sue he rer a. passengers in the amtrak derailment filed a federal lawsuit against the railroad according to court filings. four passengers claimed injuries and the lawsuit was filed in district court in philadelphia. more fallout from the deadly biker bang shootout in waco texas that killed nine and led to 170 arrests. the corporate owner of the restaurant where the violence explode revoked the agreement that it had with the owner. the corporate parent had that in place. carl icahn said they remain dramatically undervalued and time for them to execute a much larger buy back. apple shares are worth $240 a

share, nearly double where it is now trading. take a look at this. russian period putin dressed in number 70 everybody was dressed in number 70. he took to the ice over the weekend and he is playing in a friendly match in coachy. he score sochi. i doubt anyone would go up against him. they did wear the number 70 on their uniforms and that is in tribute to the 70th anniversary of russia's victory over nazi germany in world war ii. back to you, brian. i don't think i would want to be the to block mr. putin. >> block a putin goal is not a good strategy. >> i don't think so either. >> no. wow. putting on something. markets surging and the dow hittinga i new high.

a new record and pap pisani where there more buyers and sellers. everybody was bhining over the last few weeks. we are in a trading range. we are not anymore. we have broken out. once we moved over last week we were out that was trading range in new high and break out territory. we are not getting big moves. that's why people were concerned about the energy in the market. we are not seeing a lot of people buying protection. they are sitting around 12 near the lowest levels of the year. we see no increase when the marks are down a bit. the important thing is we have a broad rally and energetic one. materials have been on the weak side. we are not getting volume break outs on the news. there the major sectors. i want to know what the big topic of the day is.

industrials you heard from brian hitting new highs, but the dow transport is down about 5% on the year. the key point about all this in the way the technicians feel, we are not seeing heavy selling on the downside and not heavy buying on the upside. the markets are flashing yellow signals, but not red right now. i think that's one of the problems that people are having a hard time sorting out all the qs. >> let's discuss this more. can you still make money in this market or are valuations too high? the managing partner at harris financial group. president and portfolio manager. great to see you once again. i hope you heard bob a moment ago. he feels that we are not getting a lot of conviction with the break out and whether or not we are about to break down is hanging in the balance. do you feel we are around the >> i think it's indisputable

that they are higher right now, but that doesn't mean we are in for a drop. i think that you can find better valuations if you look elsewhere. europe and japan and around the world. it will be easier to make money elsewhere. if i'm picking stocks i will be buying in europe and not so much here in the u.s. i think there is plenty of companies that doll well, but i don't think there will be a brought-based to right it for the next couple of years. they will be disappointed if you do that. >> i do. first off, i'm a believer in dow theory. that's a concern. quantitative easing and easy money and they decide whether they will tighten or not make stocks attractive. i think as long as u.s. corporate earnings hold up and dividend yields are attractive and we are not in a recession or we don't think we are. the story is somewhat mixed. we are not seeing break out of

growth. we are seeing this anemic 2% to 3%. it's good enough to continue to drive stocks higher on a gradual basis. the 20% plus returns, i think they have to be reduced going forward. >> there are a few stocks they like. they talk about the anniversary of the ipo. it is flying with colors and you like it more from here. >> it's a classic growth story. they have got that incredible intangible asset and they continue to learn new ways to monitize. it grows into the multiple but we think it's a great long-term holding for broad spectrum going forward. >> overall you prefer europe to the united states are there particular stocks that you will be putting your money on? >> over the last couple of months utilities have been a terrible place to be. a lot of people are worried about the yield relative to

interest rates. utilities come off here recently. i think there is an opportunity for people to get in. interest rates will not go up quickly. you have a couple of opportunities here if you are a yield-type investor. about $10 off on average. i like those for income. >> if you have value, will you be going with the financials? >> it's a mixed bag. i like the larger financials like jpmorgan and if you try to find the place to make the most money, you will find it in the smaller banks. they have the opportunity to be bought or when rates rise that will be the best benefactor. you have seen deals and things like that i think that's the place to be in financials. the big banks, it's difficult and they look inexpensive, it's difficult because the companies are ham strung a lot by the fed

and the buy back policies in check and also just they have to divest assets in a different market place and a different environment for bigger banks. it's much more difficult to know which to own. >>. >> your other two picks. by the way, it's down by 36% of the past one year. thank you very much for that. active funds they say are worth the cost. that is power lunch@cnbc.com. a quick market flash. >> coming off highs of 8%. the egg supplier stock has been on a tear since april and about the egg supply as the operations are largely outside the midwest. they raised the earnings for the company, calling the bird flu outbreak a game changer. shares are up over 48% in the past month. back to you.

>> thank you very much for that. let's get back to new york city where we are there live. we believe we are looking at the last question. >> brazil is correct. >> that was truly amazing. you guys should be proud of yourself over here and over here. congratulations to both teams for an exciting competition. the binner of the division is homestead high school from cupertino, california.

>> congratulations to homestead high school. we talk about couper tino and we talk about apple all the time. it's apparent that the town produces more than just iphone. smart employees with the companies there like apple and smart children of said employees. right? we will get back to that. a competition is coming up. >> more winners coming up at 2:00 eastern time. meantime let's get back to the news. take a look at a chart of facebook. today is the three-year anniversary of the facebook ipo. that launch was shaky, but julia boorstin is in l.a. to tell us what facebook is doing right. world domination. >> here's what the social network is doing, going from no mobile revenue to $2.4 billion in mobile revenue in q1. expanding the user base over 60%

and facebook has expanded into a portfolio of aps that give it a bigger to do list. that is turning apps into a process. 6 instagram slowly rolls out ads, the next is how facebook will cash in on messenger and what's ap. with okulous launching the head set, facebook is under pressure to justify the $2 billion acquisition. also by luring developers to its platform rather than rivals that sell lower price alternatives like google cardboard. facebook is facing the challenge of growing the advertising revenue. they are watching the instant articles. the company's new system of embedding other articles on the site. plus video ads and an ad

exchange with advertising as well. of course there is pressure from facebook to stay cool in the face of new apps to see many others that look like the next snap chat. >> thank you. >> technology is clearly changing everything. even farming. kate rogers is live at the conference in chicago. >> that's right. take a look at this. this device is bringing farmers and big data and the cloud. we will tell you how, coming up next on power lunch.

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>> going back at mad money and looks like it's going to be great. 6:00 p.m. mat money tonight. # just pointing that out. you think that farming might be the last profession to be disrupted by technology. big data is changing the face of farming. it looked to be a cj joint or ball bearing. you are more likely to see cars and truck than tractors and cars. this is helping farmers leverage the cloud. he wanted to do something with more purpose. he designed this. >> that is the field view drive.

you plug that into a tractor and you pair through blue tooth to an ipad and it allows a farmer to collect records of his farming operations. what they plant and the date it was planted and how the crop performed in the various parts of the field. >> tech-savvy farming. >> exactly. this farmer will show us how it works. we can see what's going on. >> small operational changes can make a big difference to the bottom line and pennies add up quick. >> you have 10,000 acres and we are trying to memorize that data before? what has it done for you. >> it allows us to consolidate

more than we could hope to collect before. we want to look something up it's right there. we will be live at the first conference starting tomorrow with big gaps. mark cuban and more. stay tuned for that. back over to you. >> stay tuned for our very own styler matheson. a big fight in the hamptons. live on long island. >> the biggest crisis for the wealthy for the start of memorial day weekend. coming up after the break. blap

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or classes. honors classes and we are here with two schools. on my left is mounds view high school in minnesota. from indiana, let's begin the division with the first question. are you guys ready? all right. first question. each worker and employer in the u.s. is responsible for paying a medicare tax and represents what percentage? >> 1.45%. >> that's correct. you may reread the question. >> here's the full question. each worker and employer in the u.s. is responsible -- >> as he continues with the economic challenge. a major battle is brewing in the hamptons over the use of helicopters. live in east hampton with more. >> well the hamptons helicopter

crowd breathing a sigh of relief. a judge deciding just this morning she will wait at least three weeks to decide whether the new limits would take effect. they included an evening curfew and lipting to each to one take off and landing per week. they have a huge increase in traffic and increase 47% last year and on some days more than 300 helicopters took off and landed at the east hampton airport. locals called it helicopter hell. since it will be at least three weeks before we had the decision, it will be business as usual for companies like blade. they had a huge run in business with crowd sourcing and using an app. one company is not taking any chances. goth am air performed a complete of quiet helicopters that will fall under any exemptions. you will be glad to know for

now, the rich will start their summer this friday as they always do by boarding a helicopter to the hamptons. over this past weekend, there were 28 reports of tornados. may has more tornados on average than any other month. is the worst over or is there more on the way? that is the latest on power lunch.

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par. >> a computer security expert claims he was able to hack into a system from his seat on the aircraft. we should make it very clear that none of this has been confirmed, but again according to the warrant, he then overwrote code for the plane's thrust management systems and told one of the engines to go into climb mode which briefly apparently made the airplane fly sideways. is it possible to hack a plana's system? let's talk to phil le bow and you spoke with this security expert about the situation last month? what did he have to say?

>> chris roberts didn't tell me about habing into an airplane. what he said is he spent several months and years researching how you can hack into of a yonnics through the computer that is available in the back of many models of airplanes. i asked him if he was a threat to aviation and he said he was not. he is trying to get attention for what he sees as a serious flaw. i asked if he thought a terrorist could do the hack he is proposing as possible. here's what he said. >> it will be tough. the hacks themselves are not easy. you have to circomvent the systems and there is a lot of technology involved. it took us a long time to do the research. is it possible? yes. is it probable? i don't know. anybody with enough financing would be able to do something. >> that's scary. >> that it is. it would be nice if they fixed it. >> law enforcement is saying there is no credible information

to suggest this is possible. none the less after he tweeted about this and was detained by law enforcement, authorities detained him and talked to him and interviewed him. united airlines banned him from the flights and said he is not welcome on the airline ever again. >> we have the banner and the graphic that said security expert hacks flight. there a lot of questions about this story, correct. >> there is nothing showing that this actually happened. it's his claims. we reached out to airbus and boeing. we have ro must systems to make sure you cannot infalt rate through the entertainment system. everybody is careful to say it's impossible to do that. the minute you say it's impossible there is the rare chance that something could happen. when i checked with others in the industry away from bowing and airbus everyone said the same thing. i don't think it can happen. it has a lot of people saying

interesting headlines and a lot of people talking. at end of the day a lot of people say it's not likely. >> it's not something that we as passengers should be worried about. >> that would be my assessment. i would not think it's an immediate concern. >> what you have to have is for it to be possible and b, for a terrorist to be able to figure out how to do it. c, for the terrorist to want to manipulate an airplane. someone who is willing to suffer the consequences of whatever he does. that seems to be a rare set of s. >> okay. thank you very much. >> we are so lost in thought, pondering. >> that was a deep thought. >> that was the longest because i had in my life. >> a case of overpoliteness. no one wants to be the first to jump on that person. i will hand it over to you for the second hour of the show.

we have hit new records for the markets. we passed the all time high for the dow of 18,2880. we will keep on watching what's going to the close. in the meantime i will hand it over to you. >> thank you very much. that was a polite handoff. nearly 2:00 eastern time and nearly 3:00 tomorrow in tokyo. the dow is up and hitting another record high. this is the second hour of power lunch. welcome, friends. . new concerns out of and what golf may say about the quality of company you are invested in and the ceo. it's a big market monday. >> it is. a lot of roars being set. the dow with another record high interday. take a look at the dow. the nasdaq is up by about a helpful percent. take a look at compared to the rest. the nasdaq and ibb is up on the session. the big stand outs here take a

look at a new high. credit suisse setting five reasons why they are a growth stock even with a $50 billion market cap. also leaders on that etf. >> miller's matt maily puts out interesting morning notes. he notes that even as the s&p hit a number of new highs this year stocks overall have not broken out in a big way. that concerns him a bit. why do stocks overall in the ability to break out and break down, why does that bother you? >> we have -- it's great that we have these seven and this might be the eighth new high in the s&p this year. we haven't been able to break out. we are still where we were in february. it's great that we haven't been able to break down but not being able to break out either is a concern particularly for me because we have several issues of stretch valuations and number

two, negative earnings growth. gdp, we thought it would be better, but it's not enough to make the whole first half positive. in the face of those things even though the market is making new highs, the upside will be limited. >> how about this. why is the market making new highs. it showed that people are pulling their money oust stock funds and etfs and data is coming weak. wall street is passing around the r word. recession. it's starting to be utter the. are you surprised we held up as well as we have? who is buying? >> to be honest i am surprised about that. i think it will be positive for the market to pull back and not just just% or 3% and i'm thinking 7-10%, that would be healthy. we don't have to call for 2007 or 50% disasters. to be concerned about the

market. i think they are healthy. if we got a 5 to 7% or 10% pull back we can take some of the sentiment that we won't worry. that is not natural or healthy. i think that will be hoping for the longer term. >> what would make you feel better. a lot of people are saying that the markets are not breaking out cons vincingly so. the transpours are not acting well and there is no leadership. aside from a 7 to 10% pull back what would make you feel better about where we are right now? >> one of the things that it is acting well are the financial stocks. it started off by the regional banks and started doing better a couple of weeks ago. in the last week or two, the banks have started to pick up and we have higher highs. the two key stocks. they are also just slightly higher. they have been lagging for a while. the fact that they have been able to catch up if they can

break out more that will bode well because there has been a high correlation between s&p and the bank index since the crisis lows. if that can break out, that can be positive and turn my thoughts a little bit. >> we are watching that. up in boston, matt thank you very much. appreciate it. >> the clock is ticking with the deal with creditors. cnbc's correspondent is here with us and as the clock ticks, default fears are growing. >> more and more on the minds of investors. they are clearly nervous. look what's happening to the greek bonds and rising sharply as more and more funds dump their debt. jumping to 24%. you don't get yields like that unless the market is convinced you are not going to pay. the reason for the jump there was a memo leak that shows executives at the monetary fund

said they are due to the imf. we built it on that and greece's four payments. for a total of 1.5 billion euros. it might emphasis on might lead them to be tough or greece. it can trigger bigger issues for the banks. there is always a but here. the imf payments are small. the preel problems come later in the summer. the graphic we had on the air, when they have to pay more than 3 billion euros in july and august, that's when you are really going to see the issues. everything right now is all --

>> remember the adults and the peanuts. until we get to the moment where maybe that's going to be the time to think about this. >> 7 billion euro to the ecb alone by september. >> that's a staggering sum. >> they are struggling for cash now. >> can i jump in for a second. >> you encounter yourself and the brain can't handle it. isn't greece paying back the imf by borrowing from the imf? >> that was one fund they used the at imf. a lot of people made a big deal about this. it's not that atypical. the united kingdom has done it. some of the cheapest money in the world. there is no issue fist you use it. you don't have to pay it back

ever. a new car. >> we spent last week talking to clients and government officials. getting a feel from the ground. welcome. take us there. who are you meeting with and your takeaways from dealing with this firsthand? >> what i was there for is to talk to senior government officials to try to find out how they were doing. and people and to see how much they believe in the government. tuesday they had to be at the 750 million and they did not have it until the last minute they discovered. that was not clearly known beforehand. they found 650.

part of my skepticism. paranormally you are not supposed to be touching the money that you leave with in a so-called sdr account. it is the money that you leave there and you almost never touch again. the fact that they had to use that money to pay off on monday night means there is nothing else left. around june it's a tough months. they are going to and for all of them there. what are the opportunities for the firms. they come to to quit or default.

>> i want to set this up for the viewers who may not know it that well. they were based in lath up america and you felt with the defaults in latin america. they are part of a monetary unit. can latin america provide a road map for what will happen in greece? >> you raise a good point. that's a big difference. i tell you what the commonality is. the latin america had a solvency problem. they increased the debt ratios and the situation. they reduced the level of debt.

if the europeans came if for three more months. >> they will default. # they go through with the stagnation for a much longer time. >> thank you for and a massive tornado in oklahoma. strong winds will empty the train cars off their track. dozens of tornados. all the way into the south. the weather channel said things should calm down with the chance

of thunderstorms hitting parts of the southern plains. wow. >> not a good scene. here's the upcoming power menu. and fighting to be the kings of spring. also the link between time spent on the links and ceo pay. later on another indy car goes airborne. the video you have to see. power lunch will be right back on a record dow high. #

we are kicking off a new series celebrating all things made in america. we are profiling one jacket maker who has one star power behind her brand. >> during the 70s, a lot of rock stars would come here and we made jacks for janice joplin and grateful dead and rolling stones. one of the most famous people we made jacks for is david letterman. he bought our jacket consistently for 15 years. he designs them himself. he is very involved in the product. we are going to be very sad to see him go. >> find out more about the made in america series on the website at powerlunch.cnbc.com. >> home builder confidence came in slightly below expectations. with the season upon us is there reason to be optimistic not just of the home builders, but those who want to sell you stuff when you buy that new

home. specifically home depot and lo with es. each prefer one over the other. both joining us now. scott, let's talk about your picks. we often view these companies as the same investors like to buy together. which is a better bet for the viewers? >> hey, brian. we actually like both companies and think both will continue to do well. as the home improvement segment continues to improve, inventory levels are low and home prices will be supportive. people spent more money on their home when is that happened. if we had to allocate capital, there would be home depot overload. they have been more consistent overtime on the top and the bottom line. if you look at the pnl today, gross margins are roughly the same. they have lower dollars per store despite having almost 500

million more at this juncture. >> peter, when you look at the targets on each one, you have a higher upside on lowe's. 20% from here. you heard the bullish case and know you like them both but what would be the more bullish case to you? >>. >> sure. we just rintly upgraded lowe's. there two reason we prefer them. they have higher exposure to the lawn and garden segment. q1 specifically it's about 35% of lowe's sales and home depot. we are bullish on the spring. we had much earlier warm weather. that will benefit from the sales mix. home depot has higher exposure and more of a drag on the sales this year. could be as much as 100 basis points total. they set up better in our opinion. >> peter makes a great point.

this was a super bowl time for both of these guys. at this moment in time could it be that lowe's might have more leverage because of the exposure? >> if you are talking short-term, the answer could be yes. it's been a spring selling season. the outdoor area has been helped across most of the country. we are looking for them to be in the first quarter. if we look over the balance of the year home depot winds up being the better risk reward. they have a lot more exposure to the pro business. it is growing faster than the consumer business at this stage. we believe that really moves in home depot's favor. they are aware of what the pros are. they is have more density around the areas where the pro business is primarily centered? >> i get that the prices haven't necessarily trickled through in terms of sales, mid-april gas prices have been higher.

i'm wondering what you think the impact could be. what will you be listening for on the conference calls? >> sure. i think if you ask both companies and even with the analysis, there is not a lot of correlation to the same store sales. what is most interesting to us we think consumers are shifting to the home improvement space. if you look at home improvement to the sales, that trends up. it's well off of 20-year averages and it has a multiyear run to go. clearly this year so far, consumers are shifting money to that home improvement space because of home price appreciation. >> peter and scott, thank you very much. good discussion about two big stores. thank you very much. per per thank you very much. >> up next we will introduce to you new technology that may make a depth to the way we buy ask sell cars. meet the greenspans of the next generation. woo are crowning this year's national economics challenge

winner when power lunch returns.

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>> welcome back. i am here at the national

council of education and we have the winners with their unbelievable contest. we have here on the left homestead high school from ipod california. cupertino, california. what got you interested in economics? >> the class that we took this year with miss eaton here. >> your teacher got you involved? >> who is your favorite economist? >> canes. i just love canes. i just love him. >> not everybody does. >> i do too because he spends a lot of money. >> that is both the criticism and the thing. tell us the very first -- the most important rule of economics. >> make profits? >> maybe more finance. that's okay. how hard is it to get these kids interested? >> they are invediblely impressive and they are the ones

that -- i didn't have to do much. just teach them. >> hats off to you and all these teachers. you heard one said it was you that got them involved. let's talk here on the right side. you guys won with a bunch. you came early. did you have esp? >> i don't know. no. >> you don't. >> i wish i had the question in front of me. what's your favorite part? >> we are willing to wake up at 6:30 in the morning and do econ. >> what's the temperature? what's the square root of the temp 2ur? >> negative 30. >> who is your favorite economist? >> i just think it's interesting

on the leisure part. it's interesting. >> what's the hardest thing to teach these kids on economics? >> that's a hard question because they are so willing to learn anything. when they bring me questions i can't answer. >> give me an example. >> i don't think i could have comprehend up with that one by myself. >> is it hard to get them inspired? >> i don't think so. they are really, really motivated and it's like providing them the material and they run with it. >> so everybody know what is this is all about, they are bringing finance and economics into the high school. getting kids out with a basic knowledge. let me ask nan. how successful have you been? >> very successful as you can see here. 10,500 kids competing across the country in the k458 enj. a handful of them made it here. we reached 55,000 teachers and millions of kids.

>> 10,000 kids competed. >> competed in this competition to get down to the week we saw here. >> that's amazing. just the 32 kids right here. >> 32 for the finals here this weekend. >> let me ask you. go ahead. >> the mounds view kids. the cupertino kids in silicon valley here's my question. people criticize for admitting the fly over country. how do they see the midwest economy. do they think it is better off two years ago or now? >> that's an interesting question. being in minnesota which people call fly over country, how is the economy in minnesota and how is the economy now and how do you think it will be two years from now? >> they are doing well. we have higher employment and

good education. >> what's your view? >> i agree with abraham. minnesota is great. >> i want to ask one guy here what's your dream job? >> i'm not sure yet. an entrepreneur or programmer, but i'm trying to figure things out! >> how about you? >> sitting back on the beach and relax. that is my dream job. >> that's not the right answer. >> your parents are having a conipgz. >> that's a normative statement. they are saying normative statement as high schoolers proves there is hope for america. you kidding me? this is ground for hope for america. back to you. >> wow. great job to all of you guys. cupertino, california. arden hills, minnesota. i'm tearing up. these kids are the future and it is bright. give me shades.

up next the golf indicator, the link between pay and play. >> i'm not really sure if i'm a resident golf nut or i know about the outfits, but having said that i will tell you it has been an interesting session as we move into the close. we are moving ground here. there is a specific reason i wille t you more about it for the rest of the week coming up. stay with us.

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hello, everybody. here's your cnbc news update at this hour. you tube should not have been forced to take down an anti-miss limit film that sparked violence in the most. they wanted innocence of muslims removed after receiving death threats, arguing she had copyright claims because she believed she was acting in a different production. libyan raids carried out looking for migrants bound for europe. 45 people were detained as part of the fight against illegal migration. researchers at boston university

may have found a yea way to test for lung cancer. a found a biomarker in cells in the upper respiratory track they can predict with 97% accuracy whether a lesion deeper in the lungs is malignant. >> belgian chocolate lovers found a way to give it a flavor boost. a beer-type yeast unlocks it without the use of chemicals. back to you. >> thank you. >> isis fighters have taken control of the city of ra matty. this video posted by an alleged isis affiliate claims to show them battling iraqi soldiers. keep in mind nbc news cannot verify the authenticity of the video. thousands are attempting to flee the city and 500 people were allegedly killed in the fighting. >> none of that having a big impact on the oil. we have the oil close update.

>> that's right. and the video you just showed sometimes traders will see that whether it's confirmed and spur fear in the market place. we will see prices rise. crude is down more than 1%. this is still the june contract. it's going to expire tomorrow after the close and that is creating the volatility to the downside. traders this morning saying they were expecting to see that selling pressure intensify as the day went on. if you look at the chart, you will see that is what happened. a close under 59 would be paramount, but we won't get there today. to see the headlines and not have a rekz. back to you. >> lumber liquidators. the question is why. bob? >> it has been occupying my time for an hour and a half. i don't have an answer but i have suspicions am they both dropped in the middle of the day and we got calls saying what's

going on now? the f d.c. announced they will announce a major action and they are calling it a major consumer fraud case that impacted them across the nation. they are saying can herbalife do it? lumber lick wiidators? it seems ununlikely because the people who are making the call from south caroline a the other person the better business bureau's alliance. this is the part that reviews charities. it sounds like they are going to announce a major charity fraud case of some kind. we don't know what kind. it seems unlikely that it has anything to do with herbal or lumber lick wiidators. we asked them to clarify and they declined to comment saying they would have an announcement tomorrow.

if we get any more we will let you know. >> as they bumped their target up to 87 about 20% upside. that stock saw a major boost trading by over 50% gains since that time. >> interesting that today it's seeing the impact of that move by jpmorgan. if you are interested check out another chinese online travel site. qunr is on that. operating go pro it performing. they believe the market opportunity remains limited. also go pro is not yet a global brand. they believe deeper penetration is e merginging in the middle east and asia.

to asia and canada in 2015. >> the question of broth in asia. the big question hanging over go pro and the product is ubiquitous. >> with the camera that is the competitor. stock 3 is actually two stocks. it gives you more than you ask for. the energy partners and i say the partners are key. both upgraded by goldman sacks and upgraded from neutral. up to 44% and 30% upside there. polyenergy partners upgraded the buy. target to about 38. 12% upside and maybe less on holly because the stocks are up about 13%. >> this is part of the a larger goldman sax. they're active on oils and make a call out to oil prices.

>> they have taken lumps for that. >> they predict by next year and go 20-20. >> that's hindsight. >> yelp downgrading from overweight. they believe a possible buy out is priced in. shares are fairly valued. >> they give a 65% a deal will happen and say if it did not happen, with the stock traced back to $38. >> wow. >> the last stock we do is under the radar smaller name. we are going south of the border. coca coal a the ticker kof. a bottler and distributor for mexico. morgan stanley upgrading and $106 target and the stock making a come back in the past month up about 8 percents are and down and the bottler in mexico is getting love for morgan stanley. >> outside the united states is a better market in july than inside. >> it's better coca-cola.

>> it's made with real sugar. >> the taste is different. that's it for street talk on this monday. it is time for trading nation. traders do trade better. we are looking at high diffident stocks. david is head of equity sales and all right, david. would you lean on the high dividend names given that interest rates while low historically have crept up in the last couple of months? >> yeah look. you stick with a name and they will go past strong dividends. and the ability to grow in an environment where rates will rise. rates rise? an environment that is growing. i look at the technology that historically has done well six months after a rate hike. i keep an eye on those who have the ability to benefit from the cycle and have been committed to

really returning free cash for the share olders. texas instruments is a perfect example. that's a 2.9% dividend yield. they have been commitmented and it's religious for them to return free cash flow. that's a stock you can look at as owning. it has a lower yield around 1.8%. they are committed on making free cash flow as well. i stick with the companies that benefit from an economy that is in growth mode and you are only going to have a rate rise in an environment where the economy is moving in the right direction. that's what i would be focused on. >> two semi forgotten semiconductor and chip names. thank you very much. you are charting an etf on the high dividend stocks. which did you select and what do you see from it? >> i selected the sdy. this is the high dividend payer and the biggest holdings having

a nice day today. we take a little bit of exception. if you take a look at the first overlay, this sdy overlayed with tlt which is the bond tracker, they have a high degree of correlation. recently in this route that we have seen at the longer end of the curve, the sdy held in extremely well. i wonder if that is telling that this rate might be capped here. what i have seen is sd glrks this environment of rising interest rates. move over to the next chart and it held in so well it has gone sideways. if that were to bottom out bond rates start to head lower and that might break it out around 80. i like this to the upside. >> like it to the upside. a technical look at that chart as well. highlighting texas instruments and gentlemen, thank you. for more trading nation head to our website and don't do it if

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the past week. this is just in practice. indy car forced the teams to make changes on their cars that hopefully will make it safer at lower speeds. the three cars you see there all got upside down, but about an hour to two hours ago, james who drives a honda tried to flip and apparently didn't. he was away but has been taken to the hospital. four big wrecks just this week at indianapolis 500. >> a bold call on apple from carl ikcahn. he believes apple should be trading at $240 a share, about double the current price. he went on to call apple dramatically undervalued. ed lee and alex from j and p securities. good to have you with us. start off with you.

using the earnings, say $240. you see a pack to that. >> i think apple is moving in the right direction. the numbers coming out of asia look great. we are seeing acceleration in that. the momentum for the iphone 6 and 6 plus is strong and. >> i am asking if you think. >> with that tail wind to it if things are moving in the right direction for apple tv we have visibility on the apple car down the road and we could get their. >> carl is pretty convinced apple will come out with the 2020. if i were an apple investor i might be less enthusiastic if they built an actual car.

>> also 240 is a lot. that's high. again, we don't know that they have expertise on that. i think however that the watch, hopefully they will give us sales stats soon. that's not supposed to be a marquee product for them although it's a new product. they will never hit that 240. wherever it is trading now, i think it's a lot to ask. tim took increased the buy backs. to do it again. there is more promise. that's a lot to ask. >> the issue if there was a bear case with apple is this. i understand the watch goes up and the buyer who is have buying pressure. if they are willing to pay more the last guy. stock prices go up and he made this point about apple two years ago. why would he go up further when everyone owns it.

every retail investor. >> here it is trading at a product loin that is expanding. there new companies that are excusing brilliantly. they can get choppy. we don't think it's as good as it gets for apple just yet. >> do you think it's within the realm of possibility with the car. is that to the $240 price target or will it be the iphone. >> the iphone will be the primary layers and apple pay

coming into play. greater penetration in china where they are being wonderfully successful right now and things like home hit and health kit so the internet of things coming into play. there other drivers, but it orbits around the iphone 6 and down the road the iphone 7 that we are expecting to come out as this device and we recommend this company as well. >> as they get more successful overseas, it means more of the cash gets locked up which is part of what icahn is groining about here. if they want to invest it back here, that's a consideration here. and overseas markets u that's more businesses overseas. >> we have been waiting for it and talking about it for years.

is there a chance & they make a 27 inch ipad and everyone has apps on apple tv. why would they come out with a giant product. is becoming software if you think about it. apple is a hardware maker and if they figure out prop software no need to build a tv. >> great discussion. thanks. >> how are all the efforts to curb ceo pay working out? early returns say not real good unless you are ceo, then it's great. used car dealer doesn't create the best image and a new start up is trying to change that by getting rid of the dealer. blap # like a custom screener on your desktop, that updates to all your devices. and you can share it with one click.

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was selling his nissan leaf for $20,000. they check to make sure all the vehicles they buy or sell are less than six years old, no history of crashes, two owners or less and they must be in good shape. how is beepi making money? they are buying and selling used cars for the market rate. this is what the car is going to go for in your area, take it or leave it. this is the best offer. they guarantee a sale within 30 days. their car sale profit margins are capped at 9%. they're not trying to haggle you down so they can jack up the price. they pick up and deliver the vehicles. for the first time you're seeing the vehicle it's when you're buying it and it's being delivered. >> because people nowadays are used to buying things online used to transacting with amazon and with others. buying a car online is the next

logical step. at first, obviously people never heard about beepi. there was some hesitation. people wanted to make sure they were the real thing. >> they are the real thing. they are operating in three states, just started selling vehicles in texas. this is another gentleman, we were out there when he received his vehicle. they lowered it off the truck and that's the first time he saw this vehicle that he bought threw beepi. there are other startups that are getting into this business, drive shift is another one. and you've seen these companies getting vc funding because people think this is where you can disrupt the auto sales business in terms of the used business. people will be more likely to get rid of the hassling and to do it online. >> all right. phil lebeau. my uncle used a big car dealership. he's keenly interested in that story. before buying a stock, should you find out how much a ceo spends playing golf time wise? the answer may be yes. we'll find out why, just ahead. the dow, a new record high

today. maybe the quietest record high of all time. "power lunch" will be back right after this.

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excessive ceo pay has been a target for regulators and shareholders. several new initiatives have tried to control it but they haven't work. sharon epperson is here with that. >> reporter: 2014 was a great year to be a ceo.

equilar, they study various companies. the median pay was $17 million for ceos. here are the top five super earners, starting at number five nicholas woodman, the ceo of go pro made $77 million. that is a 4,000% increase over the year before. microsoft nadella earned more than $84 million. $111 million for liberty global. that's a 140% increase in pay in just one year. michael freese earned $44 million less than the top earner on the list. the highest paid ceo of 2015 david zaslav, head of discovery

communications. his pay went up an astonishing 368% despite the fact that his company's total shareholder return was down 24%. he made $156 million. paul rady of ontaro resources. the head of caesar's entertainment, gary loveman's pay increased by 328%. >> nice work if you you can get it. >> absolutely. >> too much golfing may hurt their company's bottom line. cnbc.com finance editor jeff cox wrote about the relationship between golf score and performance. what you're saying is it as easy as know your ceo's golf score, if it's too low, dump the stock? >> interestingly enough you can track how much your ceo plays

golf. the usga keeps track of that. an exhaustive study by the researchers of the university of tennessee in alabama shows the more ceo plays golf, the worse it is for the company's performance. on average 20% less return on assets -- >> 20%? >> yes, 20% for ceos that play a lot of golf versus ceos that don't play a lot of golf. from a ceo's perspective, there's a much higher chance of being fired the more you play golf. >> it's bad for investors and ultimately it's bad for them as well. the message, don't play golf? >> basically what you do on the golf course that matters. if you're going out there to have a couple beers and hang out with the guys that's no good. if you're going out to network and make deals and communicate, that can be okay. there is a ceo that played golf more than 130 times in one year. >> or the lesson is don't register your scores.

>> tonight on "fast money," we have the guy -- consumer reports had a report they tested a tesla model. "fast money" 5:00 p.m. "closing bell" starts right now. hi and welcome to the "closing bell," everybody. i'm kelly evans, down here alone. bill at the new york stock exchange. >> you have many friends there. >> i'm bill griffeth all alone here at cnbc global headquarters. you'll be there on the nightly business report on pbs. >> everybody better tune in to that. >> stocks trying to close in unchartered territory very quietly. the s&p, any positive close would be its third straight record high. meantime, the dow finally is trying to close at a new high. this will be its first record close going back to march 2nd. apple having the