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 biggest impact on the dow after carl icahn said

that stock is undervalued. he thinks it should double in price, kelly. >> he's also talking about them getting into tvs, bill cars batteries. a lot of great fodder for industries that should be paying attention. >> maybe he wants to merge apple with tesla? >> or going back to his investment last week in lyft. charlie evans said the fed should not raise rates until next year. will that power up this beaten down sector? we will hear from both sides, coming up. and why -- you had a little hint here from melissa lee a moment ago. why is "consumer reports" calling tesla's $120,000 top of the line car undrivable. you don't want to hear that for that expensive a car. >> there is a twist, bill as ever with this one. it is an interesting story. that's coming up.

in the markets right now, the blue chips, dow jones industrial average bolstered a little bit by apple as bill mentioned. up 0.25%. in record territory. the s&p is as well here at 7 points higher on the session. the nasdaq adding 31 at a level of the moment at 5,080. >> let's talk about things in our "closing bell" exchange today. we have with us this monday, margy patell tim gramadovic and jeff kilburg from kkm financial, kevin kelly from recon capital partners and our own rick santelli in chicago. >> this is a theme we've had for a while. brian sullivan was saying a while ago this could be the quietest dow record close in maybe ever. still this low, low volatility we're seeing these days. what do you make of that right now? >> it's remarkable, bill. another record day here. we see 34 new highs, 52-week

highs, the s&p 500 was very similar to another root canal. that's the sentiment here in chicago. no one is excited. like you said, it's indicating a low volume. you're seeing the vix subdued at 12.5 right now. there is premium in the vix. this complacency is not being represented through the whole marketplace. on this monday you're right. look at one thing. look at gold in the last week. up 50 bucks. some people are getting concerned about how complacent this market has gotten as we see the sentiment change into june. >> where does this leave investors? >> i think it tells you we're on a path for growth but low growth. we can't look for any sector to give us that big boost to get back to the 3% 4% growth we thought we would get in previous cycles. more of the same muted growth. >> were were were highlighting the

fact that maybe the utilities will rise with the rate increased pushed to next year. is that a sector you'd be looking at right now, it's been beat down. >> the utilities, staples sector this is a worrisome part of the market especially because we might get multiple compressions. they're trading at above p/e levels on a historical basis. if we get a rise in interest rates in september, which the fed should do. you're going to want to get out of that. much like what happened with oil stocks and energy stocks when the price of that went down same with the names and that's costing the s&p 500 their earnings this year. that cowl be the overhang going into the second half of this year. that's why the action is overseas. people are going over there, where the real growth is not financial engineering over here. >> tim, let me combine what margy and kevin were just saying. investors bracing for the fed to start raising in september.

you know, tell us about the kind of investments you're making in this environment. are they ones that favor higher rates or lower ones? higher growth or lower growth? >> kelly, i think it's interesting. i think one of the things that we're not talking about is the incredible volatility in rates. you've seen the ten-year go from 1.84 to 2.30 in the last month and retrace 15 20 basis points. that has people paralyzed at this juncture. it's kind of nirvana. we have very short duration portfolios, 2 1/2 years. we're clipping a very very good coupon. a lot of legislation that's come out recently in affecting market making has been an opportunity for us to extract better pricing for our investors. we're rate agnostic. >> you probably did see this report out of san francisco fed that maybe, they dug down deeper into the gdp numbers when they were factor in more of the seasonalities and the way the government compiles the data

maybe the economy was stronger than reported. the growth rate in the first quarter was 1.8% not the flat that we got otherwise. what do you make of that? >> if they keep rejiggering, i'm sure they'll find a formula like they have for cpi that works better for them. i don't particularly buy into it. i think the growth is as it appears to be and they could jostle the numbers. i think outside with the atlanta fed with their current reading on second quarter. in terms of interest rates within i know maybe it's not as wild as it's been but we are slowly getting right back up to 2.25 in tens back over 3% in 30s and the notion of what the fed does or doesn't do you could debate about it because, of course the common denominator of short rates will have a huge impact on everything. anybody who trades options, first question your computer asks you when you fire it up is to enter a risk-free interest

rate. the long end of market has exhibited its own personality. i don't look for that to disappear any time soon. >> let me go back to what you were saying here a little bit. you said it'ser in er innirvana for you and your market. what does that mean for some of the corporate issuers, those on the lower part of the credit spectrum? what kind of activity are you seeing here? >> obviously we're still kind of sort of in record territory over the last couple of years in terms of issuance. but kelly, so much of the issuance has been in refinancing. so at this point in the cycle what we would normally see is a lot of bad behavior where guys are taking money out through dividends and recaps et cetera a lot of m & a activity. we're still not seeing that. >> dividends and m & a activity tim? >> people are very concerned about growth. they're not playing games. certainly at the margin, look there's always bad things to bay. always good things to buy. but as we sit today, as we stated, we're still finding a

lot of things in the secondary market trading at 7% and 8% yields. given where treasuries are and risk-free rates are it's an attractive spread environment given the fact we don't see a large default market coming over the next years. >> you've found a kindred spirit here, margy. how long is that attractiveness going to last? >> i think it's going to last for another couple years. and the reason is the economy is still growing. even if it's low, defaults are under 2% which is really near the historic lows we've had. and the extra yield you get on average is about 475 basis points. so i think we could see that spread narrow quite a bit by 100 basis points meaning there's even capital appreciation left in the high yield market even though yields today are low, averaging about 6%. >> now, tim goes after the shorter term. the high yield loans. he said his maturity average

maturity, is two and a half years. how far out to you go? >> my average maturity in high yield investments is much longer, 5 1/2 years. when i look at high yield, i'm not afraid of duration risk, longer maturity. that's a small risk with what the fed is doing. i want to avoid default risk where you permanently lose capital. >> sure. >> i'd rather go long get the extra yield, be in better quality issues. >> speaking about risks, very few people are talking about greece anymore in these markets. what happens if it were to leave the euro at this point? >> i think if it -- s. thatis that me? >> go ahead, tim. >> you're right. go on. >> i think we talk about the greece situation. it's very contained, very solid. what tim hit on rickster's hit on, its volatility in the ten-year pits in the treasury pits behind me we will see it spill over despite the fact the s&p 500 is at record high.

you have to be careful. fix your roof when it's sunny out, kelly, not when it's raining. >> what do you think about that? clearly greece has been doing the dance of the seven veils with the european community\for quite a while. what impact do you think it has in the market if any? >> i think they'll continue to find more veils. the united states of america will have its own veil dance in the form of chicago/illinois. as we embark on a similar dance of veils. we have major payments that are due in 2015 2016 in particular. i'm sure it will be extend and pretend, as long as money is cheap, we can continue to find ways to allow the living and the dead to cohabitate the planet financially. >> 50 minutes to go until the bell. the dow going for its first record close since march. the number to beat is 18,288.

we're comfortably above that. >> i'm thinking about the stephen king scenario he reeled out there. the slu, the utility select spider fun. are the rates sensitive utilities now a strong buy in a question we're asking today. the pros will name names of stocks that may be worth plugging into right now. and up next another key chapter in greece's jet drama. the financially strapped nation facing a 1.5 billion euro payment. the experts tell us how close greece is to running out of cash and the potential that might have to rock wall street when we come right back. automotive innovation starts... right here. with a control pad that can read your handwriting, a wide-screen multimedia center, and a head-up display for enhanced driver focus. all inside a redesigned cabin of unrivaled style and comfort. the 2015 c-class.

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pg&e is employing these technologies as an investment to the system for the long run. we're not just going to roll up and go home because we live here and we work here and we care about the work and we care about doing it right. we all have the same goals to make the system safe and to make the community safe. together, we're building a better california. there was a time earlier this year when everybody was convinced that the dollar was going to parody with the euro. it got down to 1.09.0 1.08. >> even closer to that at a juncture. >> it's back to 1.13 now as we watch the ever changing evolution of the eurozone and greece. >> and britain. >> and quantitative easing. all the things going on over

there. >> concerns about greece making their way to the front burner today. interest rates in the country are pushed to 24%. >> michelle caruso-cabrera has details. >> people low leaked from the imf over the weekend shows that that institution thinks greece may not pay them several payments due in june. greece has several repayments due in that month, a total of 1.5 billion when you add up june 5th 12th 16th and 19th. that leaked memo we saw more selling of greek

>> because of the unique position and -- >> there are people who think that kelly, for sure. people who think that the eurozone would be stronger if greece left, because the remaining -- but it's like he says there's two sides of the coin. >> i think you have to draw the

line between what the negotiators say to scare each other and what the prime ministers say. i think america is very well aware that letting greece exit has serious consequences for the eurozone and it's benefitting a lot from the weak euro. would you let puerto rico go from the u.s. just because you have to pay them some money every year. >> we'll make a year like that before too long. thank you so much a cautionary note on greece. even as markets struggle to retain their focus. thank you both. >> thank you for joining us today. heading to the close of 40 minutes left in the trading session looks like we'll get a couple of records, kelly. the dow is 40 -- 32 points above the all-time high here. at 18320. and the s&p any positive close would be the third straight all time high. >> we'll keep an eye on those as

we head into the close. last night "mad men's" finale stirring up the coca-cola memories. we'll discuss what the beverage giant can do to get this kind of mojo back. ♪ up next from first to worst, utilities ended 2014 as wall street's best performing sector. now they're at the bottom of the pile. the pros will tell us which names could be worth buying on the cheap and we'll continue to play the coca-cola song for the entire segment here on "closing bell." ♪ 40% of the streetlights in detroit, at one point, did not work. you had some blocks and you had major thoroughfares and corridors that were just totally pitch black. those things had to change. we wanted to restore our lighting system in the city.

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welcome back. 35 minutes to go until the close here. we're keeping an eye on the sectors where we're seeing pressure. those include two today. the materials and the consumer staples build, health care having a strong session and even the utilities. >> we'll talk about that momentarily. but first, we're tracking some of the movers for the first trading day of the week. mandy? >> yeah let's start off with the ipo for the power and radio frequency business. that stock is up by about 5.6% right now. we have got shares of las vegas

sands lower today by about 1% on a downgrade by goldman sachs citing tough challenges for the country in the two largest gaming markets the u.s. and macao. the stock is lower right now. and the parent of ann taylor and loft will be acquired by a group for $47 per share in cash and stock. justice and lane bryant are currently owned by sena. it's up 19%. the shares of ascena are down 2%. 2014 was a practically electrifying year for utilities. there was a gain of almost 30%, but so far it's been a different story. the sector is down 7%. >> so we asked is this a buying opportunity there? robert frost reminds us that utilities suffer in a rising rate environment which we may by heading toward and the impact for potentially higher rates later this year may already

price -- be priced into this market. good to see you both. thank you for joining us today. michael, make the case. you think that -- tillty -- utilities are a buy right now. >> correct. if we look at the historical context for the decline the utilities have dropped by more than 12.5%. the biggest drop since the beginning of the bull market. historically speaking if we're not in the bull market, you have a very attractive entry point for investment into utilities. in addition to that, as we look at the interest rates moving higher over the past few weeks last week we saw a lot of areas moving to new lows whether it be the reits, whether it be some of the longer term bonds utfs, utilities did not go to intermediate term lows so we believe that based upon the actuarial factors and the

decline a lot of that potential for impact later in the year if rates do go up is already factored into the utilities now. >> michael, you agree? >> well first of all, i think that he had -- although he raises some very good points i think if we were to go back two months ago, certainly valuations were more expensive over where they are today. but still, utilities tend to have pressure in a rising interest rate environment. we can only look back to 2012 and 2013 and see the utilities were in the bottom two sectors during that time period. when interest rates went up and interest rates have nowhere to go but up. we think that utilities will continue to face pressure. utilities benefited from people looking for yield. and they stretched for yield for the last couple of years. and so utilities did very well, but we think going forward, investors are going to look at the volatility in the utilities and wonder if they can get the

similar yield in fixed income again. we at frost & frost expect that it will, we think -- >> thank you for bearing with me here. >> robert where are you going for yield? in a rising rate environment if you don't stick with those utilities which have a very attractive yield out there? >> yeah, a good question, bill. it has been very tough for us to find yield for our clients but i think if you still look at things like floating rates, high yields still we think there's some opportunities there. there are some places but for the most part, investors have to settle in and realize that yield right now is going to be tough. and a rising interest rate environment how much risk does an investor want to take on? invests have been taking on more risk than they should have and they have benefited from that. but i think they have to pull back and accept risk or they're going to have to expect less in yield. >> michael, for those investors who agree with you and see

opportunity in this sector can you paint it with a broad brush or do you have to get specific and if so, who do you like here? >> no, we think that this is something that you can paint with a fairly broad brush. you know, the utilities you know, we as a tactical money manager we tend to invest on more of a sector specific level so we'll use sector specific etfs to implement our ideas. if a person is a long term holder or wants to hold for five or ten years then drilling down to the stock specific level can make sense. but we think it crossed the overall sector just based upon the depth of the decline. there's some attractive values overall. >> thank you gentlemen. robert frost and michael ball from weather stone capital. i know a lot of our viewers, kelly, have utilities in their portfolios for the yield. and it's a big question of what to do with them in a rising rate environment. good discussion there. time now for a cnbc news

update with sue herera. >> hi, bill. here's what's happening. president obama cutting back on military equipment to police. he visited camden police headquarters to commend the way that officers have improved their relationship with the poor community struggling with violence. rahm emanuel beginning with a challenge for citizens to step up. he took his second oath of office as the mayor of the windy city saying he won't allow another generation of youth to be lost to violence and poverty. first lady michelle obama presenting awards to the winners of the national medal for museum and library science. these are places being recognized for innovative approaches that help their communities. among the winners the los angeles public library and new york city's hall of science. american pharoah is on the move again. this time in a trailer. the winner of the kentucky derby and the preakness is headed back to churchill downs for a week of rest before he gets back to training as he vies for the triple crown in belmont, new

york, on june 6th. and this is the cnbc news update this hour. back to you, kelly. >> i hope he with pull it off. >> i do too. >> what's going to happen first -- the fed raises rates, greece leaves the eurozone or some horse finally wins the triple crown? >> if you watched the race, i don't know if you did, but right at the end when he pulled away, i was so stunned by -- on a wet, muddy, heavy track how far he pulled away right at the end. so maybe he's the one. >> yeah. >> praying for rain out in belmont here. >> listen he's a beautiful animal regardless. >> thanks, sue. 30 minutes to go until the close. still in record territory this hour. for the dow, 18,310. it's up 37 points. comfortably in record territory. the s&p is up which would be the same for that index as well. when we come back, the ceo

of zoe's kitchen gives us his recipe for success. it has doubled the $15 initial public offering price from last graer year. it's been volatile and profitable. >> find out how he plans to transition into the chipotle of mediterranean food when we come back. automotive innovation starts... right here. with a control pad that can read your handwriting, a wide-screen multimedia center, and a head-up display for enhanced driver focus. all inside a redesigned cabin of unrivaled style and comfort. the 2015 c-class. at the very touchpoint of performance and innovation. [ male announcer ] your love for trading never stops. so open an account with schwab. and when a market move affects, say a cloud computing stock you're holding, we can help you decide what to do. with tools that help you see how market activity is affecting your positions. so when the time

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we don't often highlight the agriculture at futures, but we are right now because wheat has shot to the one-month high on forecasts of even more rain in regions around the country. more moisture could damage an already depleted crop because of the drought. they can't have it in either direction. wheat was up 3%, now a 2.1% gain today. >> keeping one the current trend, zoes kitchen, the ipo back in april of last year up about 106% since then. how do they plan to keep up with the chipotles of the world? joining us right here at post 9 right before ringing the closing bell is zoes kitchen ceo, kevin miles. welcome. >> thank you. glad to be here. >> are you worried about wheat prices?

>> not really. >> gluten free you're not. >> exactly right. we're not worried about the wheat. >> what is your biggest cost pressure you're facing? at a time when people are talking about raising wages by choice or by force is that a concern for you guys at all? >> you know, we have been fortunate across the states and we pay above average wage. it continues to be chicken is our main commodity, and produce. produce is 25% of the market basket. >> so what happens with the bird flu? ciscos, the food district -- distributor said there will be a shortage of chickens and turkeys for 18 months now. that has to put price pressure on you? >> currently right now we don't feel there's much pressure there. most of that is coming -- we understand it's around the egg market. we don't use a lot of eggs. back to lean proteins and fresh fruits and vegetables that we

use. the egg market is getting the most pressure. we understand the exports are starting to slow up a little bit. so we don't see the pressure right now but we're staying close to it. >> our friend who had the gall to suggest that the fast casual trend may be slowing and we have seen some high profile underperformances in the last couple of month, and they ipo'd around the same time you did. what is it about your core concept that customers are responding to? allowing you guys to increase comps and what kind of increase can you project for us? >> yeah i think really what is core to us we're very different. mediterranean concept. not many out there. and if there are, they're mostly local mom and pop concepts across the u.s. a differentiated brand. it's on trend with what the customer is looking for. "wall street journal" talked about eating and living mediterranean. and that's what zoes is about. >> you have a lot of room to grow and how long will it take you to get to the rest of the

states in the country? >> yeah. we are. we're mostly in the southern kind of up to philadelphia as far northeast as we go. we believe we have 1,600 plus locations across the u.s. it will take us time to penetrate the markets out there. but we think we have a big runway and a lot white space. >> when are you coming to manhattan? >> not soon. >> why not? it's the foodie capital of the united states. why wouldn't you be here? our apologies to san francisco. >> we would love to be in manhattan but i think we're a few years away from that. >> what's the average price point at your restaurantsrestaurants? >> just under $10. >> will it stay there? >> yeah we think we'll stay around the $10 mark. you can eat a very value meal with us. >> one of the things we see in not only just fast food but fast casual is this constant turnover

of menus. as you know consumers' tastes change they get finicky. they want something one month and then something the next month. you have a very diverse menu. does that mean you won't have to change as much or do you have to come up with some more innovations to keep people coming back to zoes kitchen? >> you know, the great thing about zoes we're rooted in the mediterranean tradition with fresh fruits and vegetables and grilling. so you will see us continue to add the menu items, but that's the mostly all our innovation will be around. >> more olive oil the better. >> absolutely. >> thank you so much, kevin, for being here. >> thank you for having me. >> kevin miles. he's off to ring the closing bell. >> happening in 20 minutes. thank you for that uplift there. we have the dow and the s&p heading apparently to record territory, record closes today. the industrial average up 42 points now. at 18,315. the s&p with any positive close

its third consecutive closing record. up next, every parent's nightmare. children outgrowing the clothes and shoes in a matter of months. wait until you hear how the chicago mom turned this into the successful online baseball. later, former labor secretary robert reich will weigh in on the jobs and economy and if he thinks we're tipping back toward recession. that's still to come on "closing bell."

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welcome back. taking a look at the dow in record territory today. got to hold on the current gain about 40 points to do so. not the whole thing, bill, but obviously the more the cushion it gives to the next 15 minutes the s&p also in record territory. some pretty broad-based gains across the indexes today. >> very quietly though as we said. just creeping ever higher. still the most unloved bull market probably in wall street history. >> good point. >> just incredible. you know every parent faces the frustration, how quickly their children outgrow their clothing. >> kay rogers has a special report on how a chicago mom turned this into the successful business. kate? >> that's right. what you just said kids are

expensive as they're always growing out of the clothes but we met one mom who's on a mission to change that. save parents money and change the way we think about shopping in general. take a look. >> how's it look? >> kids can be expensive. ask sharon snyder. >> every parent knows that kids grow out of the perfectly good clothes. for babies it's seven sizes in first two years. >> she got her idea after raising three kids of her own. the goal -- letting parents buy and sell their gently used clothing online offering prices at a discount of about 75% off retail. >> they go on the website and put in the address. we'll mail them out a bag, then they can fill it up with those boxes and bags that are currently in their closet. >> from there, the clothes are inspected for quality. >> everything that is accepted we pay you for it. you're paid out cash whether we ever sell it or not. >> from there, the clothes are steamed before being photographed and posted online.

each picture is unique. so the item you see online is the same one you get at home. moxie is a fast growing company and in fact they have got 50,000 items of clothing on all of these racks here in the chicago studio. they're adding 3,000 new items of clothing a week and that adds up to some big savings for the 20,000 parents shopping from them around the country. >> we see clothing as the beginning of kind of being the family resale destination. >> schneider just said it, they're selling maternity clothes and she's not ruling out going into toys or furniture in the future. of course we'll be live all day from the iconic conference here in chicago. the conference has great lineup of guest speakers including mark cuban and more. so be sure to tune in for that. back over to you. >> kate, thank you very much. looking forward to that very much. it's not just kids that outgrow

their clothing, i have that problem today. >> i was going to say at some level all of us it'ser the temporary. 14 minutes left in the trading session. will the dow close at a new high? how about the s&p? something to keep an eye on. >> yep, we'll keep you up to speed on the markets. it's urban outfitters unveiling the results. we'll bring you their numbers and expert analysis from our pros as well. the technology changes the design

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almost exactly ten minutes left in the trading session with the dow and the s&p still looking like they're going to close in record territory. and joining us from post 9 in at the new york stock et cetera change, anthony khan and ben, here we are again. tiptoeing into territory, this decided lack of volatility. what does it say about the mind set of the market right now? >> the bull market is still in place, but still a lot of skepticism in the market. evidenced by the vix today. you're seeing the vix index ticking up small today which

says there's a lot of concern in the market. this is being done on light volume. not a great performance by the market. >> art cashen just indicating about 200 million to buy on the close. so what is going to be the next event? i mean, is it the next big data point that convincingly moves us one way or the other on the strength of the u.s. economy? >> i think we need some resolution is the economy stabilizing or contracted? i agree with ben, the vix is not a problem. the vix index is below the 100 day moving average and well below the highs that we have seen this year. but the fascinating thing with the vix index is when you look at the correlation between the vix index and the s&p 500 over time, that is supposed to be negative correlation but when you look at it in recent years that's actually becoming less negative and in fact we're starting to see a slight positive correlation between the two. telling me that people are less fearful of volatility.

>> anthony i know it plays to your belief that the economy is still strong, but what did you think of that report out of the san francisco fed that took some of the seasonal factors and adjusted them and found that maybe the economy was even stronger than reported in the first quarter, maybe a growth rate of 1.8% and that the second quarter would be even stronger. what do you think about that? is that just kind of -- what do you think of those statistics? >> i love those kind of reports but we saw a soft patch in the first quarter. you can argue with the seasonal factors. today i was disappointed with that national association of home builders. i was looking for housing to be a lot stronger. the only thing that made me comfortable, when you look at the sales index, that slipped and everyone knows in the future those expectations can change in a moment. i look for the economy to get better but i'm starting to get into the show me mode that i need to see some more evidence.

otherwise i'll become a little bit more temperate in my enthusiasm. >> do you think they're in the same boat? the ten year is going to tell us it will happen when -- what we like at or no i think it's great trading opportunity for equity investors when they pull the trigger as they're late to do that when it happens, it will probably create some sort of correction. much needed correction in the equity market. as an investor that's when you want to be there. but the traders are set up for that trade so you may not get as much of a dip as we hoped for. >> where do you see opportunity right now, ben? >> well, i think they're staying with the winners. money is continuing to flow into the health care industry. as we talk of the benefits of the oil market and the lower cost of gasoline, it's not going into the traditional areas but i think where you are seeing it from my side is particularly in the health care. people buying better coverage or paying more for prescriptions. i think you see it in some of the consumer discretionary

numbers and in the automobiles but health care is still decidedly the best performer. >> gentlemen, thank you. appreciate it. anthony chen and ben willis. okay we'll talk about a couple of record closes here. >> and more earnings, this time from urban outfitters. and last night's "mad men" ended with an iconic coke commercial. also, if ricky martin was crossed with donald trump in moscow -- >> wait a minute, let's think about that. >> you'd have russian billionaire businessman who we have coming up later in the show. tell you more about that. but we'll continue to play the coke commercial in the meantime. you're watching cnbc, first in business worldwide.

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all right. inside three minutes here as we head to the close of trade. we'll set all-time highs i guess for the industrials and the s&p. let's just look at year to date charts. this is the s&p 500 index. where we have hit all-time highs here since march the 2nd a few times. this would be the third consecutive all-time high for the s&p. in just the last few trading sessions. the dow the last time we had an all-time high was on that march 2nd day and since then it has

kind of meandered but now we're getting back to the all-time high again. what isn't hitting an all-time high by any means is the dow transportation average and bob pa is any that has the market watchers concerned out there? >> yeah. a nonconfirmation, we have a new high on the dow to get a confirmation that the trend is up. we need to have the dow transports under dow hit a new high. as we have been pointing out we're 5% below that. i think a lot of people are not that concerned because the advanced decline line is still strong. we are not seeing heavy selling pressure on days when the market is down and when the market is unlike today, volume is very modest here. so i think it's still very indeterminant. the good news is there's tremendous skepticism still. on a day when we're breaking

through, in the old days you would have seen volume and enthusiasm and people said we're here, but none of that. >> this is the most unloved bull market in wall street history. >> with all the good news. >> it's in fixed income not equities. >> that's what worries me. eight basis point move on the upside. on no news. i mean, that's noticeable. remember on friday there's no news either. it moved to the downside on the yields. it's disturbing to see that kind of volatility when there's not a lot of stuff going on. if we're going to have a problem, that's where it's going to come from. it's not going to come from the equity side but from the -- >> treasuries are boxing with their own shadows right now. they're waiting for that first move by the fed. you know, it's anybody's guess. we'll know i guess in june the first time out, but beyond that it's anybody's guess, right? >> right. i think it's very good news right now that for example we're not getting huge volume moves today. we're getting reports that some people are taking money out of the stock market, and all that skepticism is bullish for stocks

in general. >> right. >> i want to watch that bond market. >> thanks bob. see you later. so we are going out with pretty quietly all time highs for the dow and for the third day in a row the s&p 500 index. much more to come, including earnings and former labor secretary robert reich on the second hour of "closing bell." thank you, bill. welcome to "closing bell." i'm kelly evans. let's kick off with noting a couple of record highs for the indexes. how we're finishing up this monday with the dow jones industrial average i believe that we can show it in record territory at the close. there we go. 23-point gain. 18,296 as it's settling out. looks for the high water -- to be the high water mark.

s&p up to 2129. doubling that was the nasdaq up 0.6%. 5,078 is the level today. let's go to kate kelly and john ford. welcome. with us with more is fast money trader guy adany. joining us off the session. guy, let me start with you. what do you make of the record highs? >> good to see you again. what do i make of the record highs, everything is holding in like it needed to do. let's look at the russell quickly. bob talked of the transports. because there was a 120 1/2 level and we talk about that in the prior weeks. it bounced off, that's a good sign. the transports doesn't want to bounce above 155. that's the bad news. but the good news it's not crashing through it. glass half full on that account.

the fact that the bond market got crushed today but the equity market didn't which is different than some of the things we have been seeing. maybe that's a good sign as well. >> good different or bad different, guy? >> bad different because i think in weeks past on the bond market we have seen a commensurate move to the downside. >> i'm queuing you up for this evan. >> i know. i'm not going to gloat over his point too much. but the bond market sold off heavily today. i don't think this was that much volume but the bond market sold off heavily and the stock went up which is contrary to that's happening. >> i don't know if this helps, but the biggest contributor in points term is goldman sachs. apple helped as well. two companies that are strong individual names, strong cyclical names importantly if you try to put together an proving economy story. >> i guess i would say we're waiting to hear later this year when we'll see some movement on rates and goldman sachs if anyone and evan can attest to

this is able to make arbitraging the difference when we see more differential and more ability to play the duration trades -- >> some think the fed should wait until 2016, but the markets march on. >> and it may differ from the view internally at the firm. but the market is speaking here. we like goldman and blankfein is starting to distinguish them in terms of what their strengths are. it does appear they're muddling through the crisis period with a strong business model. they have been innovative. so i think that's probably the long term story. but it is an interesting thing to note. apple as you said carl icahn's letter, was that his nicest letter ever? >> what a letter that was. >> was there a more genteel letter? >> i wouldn't have expected him to say that apple is undervalued. what a strange thing. he's -- by the way, apple -- up 500 today. oh, it should be 1,000. >> the only appropriate response to that letter is get a room.

get a room. >> so he's tacking $110 on to the stock. >> right. >> with what he thinks is a conservative ratio. >> i'm sure carl spent all night working on his xl model. i'm sure he's working through the dcf. >> now, now. his argument he's talking about how apple is going to get into cars. much more concretely than people -- >> and televisions. >> and batteries. >> but everyone has to be careful. remember what happened to the apple stock a couple of years ago. al everything that was -- everything that was true about apple then is true now. oh, in 2015 if you had a crystal ball, it will be a watch, everyone will love it. and the stock still dived down 40%. so based on the models and what you expect apple might do saying apple is worth "x" amount, 240 bucks a share, doesn't mean it's trading at 240 bucks a share six months from now. >> the reason that investors are in it today which includes the investor friendly moves they

have made. how much of a risk is there in this market if a lot of people who have been in the yielding sectors, names, for example, start to move money out. do you think they'll put it back in other parts of the stock market or might they move it out of the market altogether? >> they have no choice but to stay in the market. there's no alternative. and what i think as we stated earlier, when i was up with you on the deck and then listening to the guest again today, the fact of the matter that the equity market moved to the upside is an indication that you cannot use the former models on rising interest rates against equity. the central banks have manipulated this market and the asset bubble created in the fixed income side is going to be the concern of how quickly that money can safely leave that market and find its way into the equity. >> ironically -- you know this as well as anybody, most of it flows into markets generally this year have still gone into fixed income. >> exactly.

that's a danger sign. that's an asset bubble created throughout the world. the united states treasury started to deflate it, but by virtue of the fact that we have the safe haven we continue to see money flows into the market. i will go back to say that the bund market break will be the black swan that we'll look back to in this marketplace to say oh, my god, look what was created by these central governments. >> kate? >> well if i can pivot back to equities for one second, because you have seen the action in alibaba, down a point and a half percent. i'm just curious what people think and you too, john in light of apple, alibaba losing steam. we saw some major hedge fund managers get out of it including loeb and paulson. it was a mixed bag. >> there were some counterfeits today. >> that's a concern but is the party of 2015 over for them? >> far be it for me to predict the stock performance in alibaba, but you have to look at

two to three years out. you have to consider how much of the hype was built in to this when the stock first came out and ipo'd back in in september is that the best way you want to play it overall given there was so much attention to that. there were other plays to it. but i don't think investors have paid enough attention to it. >> what about the china story, guy, because what an interesting one it's been. for lack of a better word. you know, here's an economy that really appears to be slowing more than was expected or anticipated, i guess. more than regulators might be hoping because all of these measures including some of the local bond swaps they were planning, you know they're making real sure that this isn't going to hurt growth any further. you know copper is going one way, some of the metals are going the other. my question is simply this. which way does china have to trade from here to support equities at this valuation? >> well i think the first point was the exact right.

if you think about it, i mean, they're slowing down. if you told me six months ago you'd see the rate of decline and then you say, guy, where is the u.s. equity market going to be i would have said significantly lower. we're making an all time high. so many cross currents it's really tough to say. >> same with greece, right? >> right. they seem to have -- they seem to have their hand -- they seem to have an even keel right now and they seem to be the best capitalists on the world, quite frankly. we seem to be the ones who have it backwards. >> i don't know. >> i have to tell you, again six months ago you told me what's going to take place in the ensuing six months, where is the u.s. equity going to be? i would have been 100 wrong. that'ses that's that's why information is a dangerous thing because things happen in the exact opposite as you think. >> i want to go back to what your other guest mr. willis brought up which is the bond market. i think we talked about --

>> fixed income. >> the bubble on fixed income is the story over the next couple of months. greece will be there but it's as if the market moved beyond greece at this stage. moved beyond the china slowing -- >> how do investors protect themselves? okay, what am i supposed to do? >> you know guy and i have had this debate for a long period of time. fixed income has provided a safe haven of investment for people. it will be interesting. if rates back up 50 basis points which they could in the matter of a couple of months you know all of a sudden, fixed income investors with saying i wasn't supposed to lose money in bonds. i'm not saying that's going to happen, but if it does happen the result on investors' mentality could be relatively big. >> sorry in but we have some earnings on urban outfitters we want to get to in the meantime. mandy, what can you tell us? >> absolutely, so urban outfitters the retailer came out with the results and it missed only both the top and the bottom line, kelly. so if we take the eps it came in at 25 cents versus 30 cents which was the estimate.

and revenues also missed. the revenues were expecting were $758 million and came in at $739 million. comp sales were lower than expected, up 4% versus 5.2% gain expected. its worst unit was anthropology which came in sales up 1% versus the 4.6% gain that was the estimate out there. so in after hours trade, we're seeing it tank. you can see on the corner of the board down by 12% right now. back to you. >> wow. big disappointment there. what do you make of guy adami? >> that's expensive for that name and this stock is not trading well now for the last six months. i think it's trading 36 1/2 in the after market. the 7 1/2 short interest in the name is going to grow. i think people will try to push to the downside of the name. it will find a bottom but i don't think it's 36 1/2. >> the retail -- aside from the couple of other sub ones and

energy seeing some of the impact. there i'm sure you'll have much more on that coming up on "fast." there's going to be more discussion here about consumer reports now talking about that tesla and whether or not you can get into the car. that's the concern. man behind the undrivable report will be on "fast" at 5:00. and the dow creeping to another record high. is the market poised for a breakout or a breakdown? we'll make sense of the mixed signals investors are getting and also ahead -- ♪ i'd like to buy the world a home ♪ >> "mad men's" series finale, don draper came up with the most famous commercial of all time. but what can coke do to get its fizz back? you're watching cnbc, first in business worldwide. but how can you spot who's at risk? the one who lives far from campus? the one who works the night shift?

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welcome back. a high visibility on social media doesn't always pay off for major brands. cnbc's eric chummy has the details. >> hi. for consumer brands that brag about how much people tweet about them be careful because

the data shows higher quantity is always associated with worst quantity. let's look at the food and beverage and restaurant brands. the most talked about brand was taco bell, but almost every comment was negative. taco bell joined several fast food chains all with high quantity and low sentiment like burger king and mcdonald's. mark mcfahey made a great chart with all the brands. brands with high sentiment scores couldn't get them in big numbers. they were led by 7-up, hershey's and cheerios. hedge funds are picking stocks, a social media tracking etf is in the works so you're seeing a direct relationship between social media and social media. it's high to get a high number and high quantity of interactions. for those look at oreo and coca-cola.

coca-cola is the most valuable of them all and practically the only one with above average in both quantity and quality. >> fascinating. all right, thank you very much. as mentioned there's more on cnbc.com. coke was lighting up social media last night as well. amc's hit series "mad men" presented the final run. you see don draper sitting on the hill and meditating and closing out with the coke commercial. the ending up for debate, it's not considered the most popular ad ever. it shines a spotlight on coke and can coke teach the world to sing again? let's bring in greg smith, and phil johnson the ceo of pga advertising and marketing. welcome to you both phil, what would you do today? what's the killer commercial for coke today? >> the -- first of all, i thought it was a brilliant

dramatic perspective, you know? here you have this guy who is at the lowest point of his life. the show opens, he's -- he's snorting coke. he's sleeping with hookers. he is falling apart and his next act as he comes back and writes the smaltsyiest song ever played on tv. it operates on the level of the show and then on the level of advertising and what it means for coke. >> greg, same question to you. fast forward, you know 40-plus years now. what do you do for coke today? what kind of commercial would really be able to make this company who -- which despite being positively viewed by most people on social media it doesn't seem to have the same relevance? >> the quick answer is there is no commercial that can do that for them. what i found fascinating about the episode is that it takes

place in 1971. after the counterculture of the '60s. after the assassinations of the kennedys, mlk, malcolm x and kent state and yet people in 1971 were still trusting enough in a corporate brand to allow them to put an ad out saying we're unifying the world around a coca-cola. and that idea today which might seem schmaltzy was beloved and people felt like yeah if we could all get together and sing on a hill top, things would be fine. >> if you feel that way about technology today which is fantastic. you put out a commercial about an iphone or the messaging, you know zuckerberg with facebook, he's practically singing the

song to us. >> the apple ad with the silhouettes of the white earbuds and gadgets reminds me of that notion. >> and the apple watch ads -- >> i need to tell you why -- >> it's now the iphone taking place in the coke ad. >> i have a question for the gentlemen by the way. >> which one? >> i'll direct it to greg. is it possible today to have an ad like that and i say this in the -- that was an age at which a brand could flood three television networks with that ad. it became instantly famous. i was 7 years old, i was totally brainwashed by that commercial. the things -- you can't do that today. isn't that the reality of today's media world? >> absolutely. it's absolutely true. and here's -- there's many reasons why. one is like you said, media fragmentation. while there will be popular ads again like apple and earbuds they're based on independent expressions or freedom or happiness or joy. not based on big tent

collectivity ideas. the other thing is because social media and the internet and the age of transparency, we know a lot of this stuff is really kind of debunked. kind of hooey. we forget -- if you go on youtube today and you look at that ad, it has 500,000 views. the next video that queues up is what happens to an egg after sitting in coca-cola for a year. >> but phil -- >> it's a brown blob and it has 3 million views. >> we know how bad it is for us but yet i'm drinking it anyway. we heard from eric, if you go on social media coke has a positive brand viewing by customers. despite all the things we know about it. so couldn't they still today be able to get across some positive message despite all of the things that -- >> i absolutely think they could. >> go ahead. phil, go ahead. >> i think there's a couple of things they're doing, they're not capitalizing on.

so they have been working with dean cayman the inventor of the segway on a global water purification project. this is one of the hugest issues facing us as a -- you know as a society. coke is right in the center of it with some great technology addressing a global issue. they're not capitalizing on it. i also -- i think i like -- i like everything greg said. but, you know, if you look at what -- the real beauty campaign, a brand that has been able to co-op a social point of view and combine it with traditional media and with social media. so i think there's a -- there's a lot that coke could be doing right now that they're not doing. >> all right. i don't want to cut you have but we have to go. phil and greg thank you both. your white turtleneck made the point because the black turtleneck is the apple product. >> i disagree with that. i have to have a word with you.

>> i want to talk about the "mad men" finale in general. i don't think it was clear he created the ad. i mean, that was the implication. >> fair point. kate is the only one of us who actually saw it. charlie evans says the fed shouldn't raise rates until next year. will the weak economic data push that back or will we see it next month? former labor secretary robert reich will join us. and tesla has the top of the line call so why is consumer reports calling it undrivable? ♪ building aircraft, the likes of which the world has never seen. this is what we do. ♪ that's the value of performance. northrop grumman.

the s&p 500 as you can see closing at a new high today and the dow is points away from its own record. did we not close in record territory today? >> that's what you're here for. we're here to give useless facts. >> and bob, tell us about the markets. >> we're essential think there. but the important thing is new highs on the dow, but the dow transports are not there. show the chart there, folks, or the full screen. the dow transports are supposed to hit new highs as well. that confirms the new uptrend we're supposed to be in. it's not, so people are gnashing and wailing and saying we have a nonconformation. should we worry about it? i don't think yet.

the dow's leadership has been spectacular this year. you have united health and disney and boeing and to do it yourselfers in home depot. the economy is slowly improving and the transports are having a really rough time because commodities, specifically oil is really messing with the airlines and messing with the railroads. messing with their shipment rates and that's a bit of a problem. i don't think it signifies underlying problems with the economy. whether or not we're at the top, you don't have any of the classic signs of the market stop. so for example, there's no signs of an increase in stock for sale. that's the selling pressure. no signs that demand for stocks the buying interest is dramatically decreasing. the advanced decline line is not deteriorating at all. that's what you do see in the classic market top. we're hitting new highs today. i'm not worried. i would talk about yellow signal here. we need to get more stocks advancing, it's not great, but okay. it's a sign of an aging market. kelly, we have some yellow signs flashing but definitely not red

signs right now. back to you. >> all right. thank you very much. so to get more reaction to the markets from former labor secretary robert reich and he stars in the documentary "inequality for all." are you running for president? >> no, i'm not running for president. you can breathe a sigh of relief now. i think the economy is doing well. i think the stock market is going to continue to do exceedingly well. i think a large part of the picture has to do with the fact is not going to increase interest rates any time soon. i don't think they're going to increase certainly before september. i would actually bet maybe not this year at all. >> you don't want them to or you really don't think they will? >> i don't think they will and i don't want them to. i think janet yellen is looking at and the fed is looking at the low labor participation rate. still very low by its standards and looking at wage growth, median household income.

adjusted for inflation still going down. and also the fed is concerned about economic growth overall. i mean the latest data showed that the american economy is just not growing. now, under these circumstances it would be crazy for the fed to raise interest rates. >> i'll bring in the panel in a second, but just to clarify first, i mean the trade deal transpacific partnership, would that help or hinder growth as you see it? >> no. i think also we know that the beneficiaries of most trade deals tend to be upper income people. people displaced from their jobs tend to be middle or low income people -- >> but you support the deal. >> one of the biggest problems in this recovery a lot of middle and lower income people don't have the purchasing power to keep the economy going. >> i want to be clear, because this is an issue i'm seeing the afl/cio coming out with more

concerns about it and secretary of state clinton elizabeth warren. some high profile people think it's a bad idea and you think this is good for the country? >> no no i didn't say that. in fact i think it's a bad idea. i'm against the transpacific agreement because there's an investment plank in that agreement. we only know because of what is leaked. this is is a classified document and i can tell you only on the basis of leaks, but under nafta, it says essentially that companies, global companies can go to a separate tribunal outside the laws of any individual company and get reimbursed for health, safety environmental or any kind of regulation that may impede their profits. that to me is not necessarily good for the country. might be good for bottom lines. >> great. >> i have a question for you, secretary reich. you said that you think the fed is doing the right thing and they shouldn't do anything with regards to touching rates.

but where do you come out on whether or not the fed is responsible for the growth inequality in the united states in particular for the massive boom of the stock market and what we see as a bond bubble? do you think the fed bears some responsibility for that -- >> well -- yeah there's a relationship between what the fed is doing keeping interest rates low and growing inequality. the real problem is that the fed is the only game in up to. if we had a fiscal policy that was appropriate for right now, that is more stimulative in my view, the fed wouldn't have to bear the entire weight of keeping the economy going. if we had you know, other countries that were not keeping their own currencies unnaturally low, the fed wouldn't have to bear as much of the burden as the fed is now bearing. yeah the fed still has to keep

interest rates low for the good of just keeping the economy going. >> mr. secretary, i'm curious on this trip to iowa that you're taking. i guess you plan to stay there for a while because of its importance in the presidential process. you want to put a focus on the wage gap and inequality, but it seems to me that the citizenry hasn't developed a good vocabulary for talking about this. either rich people are bad or the income gap is your own fault and the cream rises to the top. is there a way of talking about this that's more intelligent? i have seen videos that you put out on social media, maybe you're trying to get to that. but how do we get to more intelligent conversation about inequality? >> i think that three things that really are underlying -- the three basic problems of widening inequality, number one, if the middle class doesn't have the purchasing power because all the economic gains are going to the top, then you don't have

enough aggregate demand to keep the economy going. at that's broadly understood by the economics community. number two, if all of the gains are going to the top, you have with those gains comes a lot of political power in our system. and so a lot of people just get turned off politics feel like the game is rigged. i have never seen so much cynicism about the political process because of all the money that is going down on the -- and into the political process. number three upward mobility is much more harder if you have less of a middle class. if you look at the three, you have to conclude that the widening inequality is bad for everybody. >> robert reich, thank you for joining us this afternoon. i appreciate it. former labor secretary. time for our cnbc update. sue? >> hi, kelly. here's what's happening this hour. mourners crowded the catholic church for laura finamore, one

of the victims of the amtrak derailment last week. the corporate real estate executive was one of eight people killed in the accident. thousands of supporters of yemen's shiite rebels demonstrated on the streets. a five-day cease-fire ended on sunday. people who sleep less than five hours or more than eight hours may have a significantly higher odds of a stroke. this from a new study. another crash at the brickyard. driver hinchcliffe crashed into the wall. it's the fourth wreck at practice for the big race in the past week. he suffered an injury to his upper left thigh but further details were not provided. it's amazing the crashes haven't been more serious. >> absolutely. >> wow. thank you so much. that race coming up this weekend.

consumer reports calling tesla's new top of the line car undrivable. the doors wouldn't unlock and let them into the vehicle. shouldn't consumers expect a problem free experience if they're buying a $123,000 car? and pedialyte is best known as a cure for sick kids. but should gatorade and powerade be worried? remember they're owned by coke and pepsi. that's coming up.

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welcome back. it's not uncommon to get locked out of your car, but when consumer reports does and they shelled out for the tesla model sp 85 d they didn't expect the door handles to disappear. tesla sent a text but that didn't win them a favorable review. in fact they used the word undrivable and joining the panel to discuss this man from behind the wheel, phil lebeau. what did you think? >> was it undrivable, yes. and if i spent the money, would i be upset, you bet.

people are sending me e-mails, you see this consumer reports can't drive the tesla it's broken. the handle didn't work, they codn't get in. they got it fixed. that's not mean, that's not undrivable permanently. all that said -- >> what are you going to do? >> i would be mad. i would be mad. but at the end of the day, does this happen with mercedes or bmws the high end models every once in a while? you bet. i get the complaints every once in a while. >> how common is the handles that snap in and snap out? is this specific to the tesla? >> well, it's specific to tesla. that's one of the features they're noteworthy for. you know it's one of those things where the electric motor didn't work. it went bad. these things happen. that's not excusing tesla. but it is pointing it out. >> anti-theft accommodation. is it anti-theft or just for aesthetics? >> it's a little -- a combination of aesthetics and

aerodynamics. it is flush with the rest of the body frame. it's pretty cool. >> i don't see the problem here. if the guys at consumer reports are really smart they'd now how to work the wire hanger -- >> but they represent the consumer. >> my point. they're supposed to use the wire hanger to get in. >> you said that -- you said that they -- you said they disappeared. >> the biggest point is that tesla dispatches a customer service person to come to your car and fix the issue. not something special they did for consumer reports, something they do for all customers. overall, customer loyalty is extremely high because of it. >> in other words, if this were a restaurant and you had a critic in there wearing a wig and there was a problem with the food, they'd send someone out anyway. >> do i want them in the driveway every morning? >> the whole notion of undrivable it was for 12 hours or 24 hours. fair, i guess. but it makes you think that the car literally doesn't work.

like once you put the key in the ignition cannot drive it. >> tesla is not going to read the article. >> they might not. the headlines could be super damaging. >> the headlines -- you said that the handle disappeared. is this like the phantom toll booth or something? you said the handle disappeared. >> yes. >> the handles disappear? >> phil? >> it's flush with the door so when you walk up to the vehicle, when you walk up to the model, it comes out. you pull on it, you go inside. when you're sitting inside or when not in the vehicle it goes back to within the door. so there's a motor in there that controls it. when your key fob is close to the door, it opens up. what happened here is that the electric motor unfortunately it broke. these things happen. so i think at the end of the day, interesting story but a footnote. it's not indicative -- >> if you're selling skateboards or bicycles you don't need world class customer service. they don't break, everybody knows how to work it. you're cutting edge in technology, yes, you have these

problems but they have the customer service that keeps the loyalty high. that's the bottom line. >> phil, last word. >> i would agree with that. i want to see what consumer reports says after they have driven this vehicle over six months or a year. day in, day out. that's the review i want to see. not a teaser headline that it's undrivable. >> all right. we take your point. i'd -- i'd be upset if i couldn't get in the car, but i wouldn't have it in first place. we'll leave it there. bye, phil. thank you so much. phil lebeau, it's an expensive car. >> you probably have a power source. you're an ideal candidate. >> the man behind the report jake fisher, will be on "fast money." builder, singer, restaurateur and in between he rubs elbows with the likes of robert de niro and donald trump and vladimir putin. we'll catch up with him.

and women have known the wonders of pedialyte for their children and now adults have helped the sales of the replenisher. it could mean bad news for other energy drinks. that story in two.

well he's often described as the donald trump of russia. he co-owns a restaurant in nobu with robert de niro. he is hoping to break into the u.s. market now and he joins us here at post 9. welcome. >> thank you.

>> a pleasure. >> very confusing introduction, right? >> did we get right? how would you describe yourself? >> you got it right, i'm a musician and songwriter first of all. >> what about those who say you your success is because of your father and your relationship with vladimir putin. >> i get that a lot. but people who come to my shows draw their own conclusions. actually, i have a show tomorrow so come and see me. >> let me ask you a question. why do you feel the need to make it in the u.s.? i mean, i ask you -- you can obviously be popular in the former soviet union. >> i am. >> even in europe. >> it's the desire to succeed and not to fail. i have taken this flag in the show business and i want to be successful in every territory i attempt. and so far, russia europe and the united states. >> you know just to play devil's advocate here why would taylor swift want to go to russia or any other country? of course it's an expansion opportunity.

right? >> he's got a glamorous life. a great life. >> but everybody -- >> he's -- his family is all over the world, he can do whatever he wants. but it's hard to make it in the music business. >> especially being -- coming from a wealthy family. it gives you a very wrong kind of flavor to your music. >> good point. >> people like -- >> well, what do you have to say to me? how can you sing about pain? but you have succeeded. you're an international pop star. you have a lot of opportunities. you had business acumen. what do you see as the future of the music business because a lot of pop stars, great artists who aren't stars yet have to make a living at this and it's difficult with all the technology closing in. >> three things, i think physical sales are pretty much gone. people don't make money off selling things on itunes. and live shows is the future. i think the worldwide tours, the

price tag is so high now that you could actually earn -- you become a millionaire if you can sell out shows all over the world. the third most important thing is social media today. i think you can become a musician through social media. you don't need a label or anyone. if you have it right, and we have seen this happen many times, become extremely successful overnight. just using youtube or twitter or -- >> we're pretty much out of time. if russia is standing in the world today damages your prospects here in this country, as a commercial opportunity? >> i don't think so. i think music is not politically attached. if you go on stage and sing about real things heart break, nobody puts the two together. vladimir putin west fighting the ukraine. >> you can have your own vodka? pitbull was telling us the other day how he has his own vodka. if a guy from azerbaijan and the former soviet union can't have a vodka --

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well pedialyte is popular with little kids. it's becoming popular with adults. pedialyte consumption among adults is up since 2012. could this be a serious threat to own dmersers coke and pepsi. bill it's good to see you. how big -- this is an abbott labs company so it's really interesting that we're talking about a potential disrupter from a different traditional industry. how much bigger could pedialyte

get? >> it's a $100 million business. power aid is 1.1 billion. growing great like you said. up 19% since last year. very very small in the big scheme of things. >> couldn't abbott solve the distribution problem? >> it's pretty tough. you see coke and pepsi trailers. it would be hard to find pedialyte in the 7-eleven. >> the pedialyte demographic is the mom or dad. >> looking for something handy in the medicine cabinet. >> you're not going to find it in the gas station or vending machine. should they do any rebranding or different version to reach that market? or maybe should power aid or gate or aid have a lighter version? >> it's hokie the pedialyte version. it started as a staple in the fraternity house. it's been around for a decade in the frat house. maybe mom's in the frat house.

>> its oo interesting's interesting, kelly. i was going to say it's the millennial's fault. >> he just said it is. >> i think i'm right. >> it's a millennials product. i'm sticking this with twitter, facebook, a lot of the other late inventions. >> but it's true for better or worse, kate. >> no one i knew drank pedialyte, or coffee and bacon, egg, cheese. >> or gate gatorade. when we're looking at the category some fancy name for the overall category. a huge market you just told us that gatorade and power aid command. >> it's so small. $100 million. i think gatorade is trying to establish street cred. they're moving away from the whole hangover remedy thing. >> don't they have to get rid of some of the sugar?

people are after pure electrolytes, bill. soft drinks they don't want the rest of the stuff. >> that's a fair point. if you wanted to you could buy g 2 on power aid 0. they don't taste as good. >> i think kelly's on to something. there's so much in this category. think of smart water. people want electrolytes about the good health. we talked about the diminishing value of coke as people skew to healthier options. with all the calories in a gatorade, maybe you don't want to go to zero but you want something in between that's lighter and replenishes the energy. minerals. >> they have to work on the name. the name is not a sexy name. >> pedialyte says it doesn't care that it has these connotations that it sounds silly. >> but, i mean -- >> to crack the billion dollar market. >> the millennials like you, they do care about branding and names. >> apparently not if we're drinking the stuff. >> if you're a 21-year-old drunk

frat brother you don't care. >> bill would you advise pedialyte to change their name? >> no, i think it's part of their schtick. my beloved chicago cubs i don't think they're going to dump a bucket of pedialyte on his head. >> it's setting up for a whopper of a weekend on earnings. we'll get a preview when we come right back. nnouncer ] 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 just a tap away. what's on your mind lisa? i'd like to talk about a trade idea. let's hear it. [ male announcer ] see how schwab can help light a way forward. so you can make your move wherever you are. and start working on your next big idea. ♪ ♪

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welcome back. this earnings season is starting to wind down. we're getting big retailers reporting. walmart and home depot on tap tomorrow. best buy and gap on thursday. ann taylor is on at that point for friday. speaking of the ann taylor story, i do wonder how much more activity consolidation there might be for a lot of these names especially if they get big share point declines. >> especially if you consider that the difficulty in figuring out what the difficulty in retail will look like you have the one hour or slightly in that

realm delivery people trying to figure it out. you've got the mobile and beacons coming into stores. so it's interesting to see how these companies are doing, anthropology, lane bryant. >> stores themselves as one analyst put it themselves are caught in the mall. >> mall traffic is declining. as we've seen in the mall complex, a lot of these places are hurting. when it comes to costs and keeping your margins intact by keeping the costs down. >> one final thought, kelly, we had this discussion a few months ago, which is we were talking about home builders retail how has it helped the economy? we may be at the point where retail is no longer a tale for the economy. >> at least chain retail. i love it. it's all about apple. ha. we'll leave it there for the hour. great job. that does it for us on closing bell. "fast money" coming up in a few

moments. melissa lee, what's on tap? >> we're at records. what are the three stocks that are going to take us higher are? carton braxton worth will be here naming names. >> three stocks to take us higher. on that note we'll send it straight over to you guys. >> thanks kel. "fast money" starts now overlooking new york city's times square. we have pete gary guy. tonight on "fast" why paying $127,000 for a tesla means you might have problems opening the door to get inside. a special report who called the all wheel drive vehicle, quote, undrivable. plus, the dow may have hit a new record today but we'll tell you why dow 20 k is much higher. we start with the news of the day. one of the world's biggest investors, carl icahn, taking to twitter saying it's worth almost its double ant. should be trading at $240 a share. here's a