barbecue. but remember, remember what memorial day is all about, those who have lost their life for this great nation. thanks to all of you have who served including my dad, first class petty officer tom sullivan. have a good weekend. "closing bell" starts right now. welcome to the "closing bell." i'm sara eisen in today for kelly evans april the new york stock exchange. no place i'd rather be on a friday afternoon. >> we love having you here on the friday before memorial day. i'm bill griffeth. fed chair janet yellen said she expects to raise interest rates this year if the economy continues improving. that's the big caveat. any positive close for the s&p will be a new all-time high. we're not there yet, though. >> we've been seeing it happen all week long. the nasdaq the outperformer trying to close at its own record high. the number to beat 5,092 and

change. it's been nearly a month since the index ended in unchartered territory. we have much more on the nasdaq and the fed's rate hike strategy and the market. including which stocks are set to heat up this summer. >> it officially begins this weekend. but the real feature today is what? >> the dollar. >> what's going on with the dollar? >> the first up week for the u.s. dallas against the euro in five. that's the real story. >> we'll get you your own show on cnbc calling it "the dollar and you." >> don't tease me bill. the dollar actually making a move. it's up 1% after janet yellen. it's one of the places where you have seen the biggest reaction. >> a move. let's talk about it. back with us kathy jones from charles schwab. who's with us here at the big board, gerard fitzpatrick from russell investments, ken mahoney, also with us here at the new york stock exchange

rick santelli checking in. >> when you look at how the market responded, you didn't get a whole lot out of this did you? >> i think she just reiterated what we already know and that is that the fed intends to raise rates this year. we think they'll probably start in september. as long as the economy is doing well, they're going to take a gradual approach. which i think is pretty well based into the market already. >> are we there yet? i mean -- what has to happen for us to be there so they can start raising rates do you think? >> i think we're probably there. again, i think the big concern for them is the communications strategy. they want to avoid another taper tantrum. unemployment is falling and even though the economy was slow in the first quarter, they've dismissed that as transitory. they believe it will pick up again. i think what it indicates is the new growth rate of 2% to 2.5% is

all they expect. we're not going back probably with 3 plus growth rate. and then rates will stay down lower at least than they have been in previous cycles. >> right. rick santelli perhaps a bigger market mover was the inflation report that came out earlier this morning. saw yields tick up. is that what you're talking about out there in chicago? >> yes, definitely. that was the big piece. the other thing that was missing today as a little flexibility. many traders on this floor who by the way left early in the foreign exchange and interest rate complex, thought that janet yellen 4 1/2 hours after what was the hottest core cpi rate going back to august 2011 could have mentioned it even if being on the road she didn't have all the dots connected. not to mention it at all and then make a comment in her speech that was, you know keeping the development and economic activity and inflation,

keeping us up on those as they occur, really disappointed traders to some extent. as for what's going on in the marketplace, there was a lot of volatility in the market obviously at 8:30 eastern. there was i allot of volatility when janet yellen started her speech at 1:00 eastern. traders were on the wrong side for most of the week. rates were spending time under 2.17 for about 24 hours. to think interest rates still close up on the day and on the week was kind of surprising considering that bias. >> ken mahoney, last time you were on we talked about the lack of volatility. the decline in the vix. the vix is below 12 sitting right on it. it was below it earlier. >> that's the lowest of the year. >> i looked up what do you think the all-time low for the vix is? >> around 11 1/2 or so. >> single digits. >> all-time low is 939 setback in 1993. >> traders are frustrated by the

mobile volatility. for investors, they have to love this volatility, this grind higher so to speak. we've been saying for the last couple years, buy the dip, sell the rip. we're key in on the vix, the volatility index. something will happen and the vix will shoot up and that will be key, it will take chips off the table. while the volatility is low, we'll stay with that trade. we'll stay long after investors get this low data feeling, we accept it. >> what do you mean by there may be another shoe to drop in the bond market? >> i think it's like the taper tantrum we've seen last year. we've seen it earlier this year you put that into perspective, that happened before the fed started increasing rates. we certainly expected that the fed would increase rates of september of this year. today, chairperson yellen had an opportunity to be somewhat

consistent. she didn't. she clearly pointed that inflation is on track as well as employment. hikes will occur in september. that's the potential for the next shoe to drop. in other words, another type of taper tantrum or another increase in yields. so with that we're positioned to be relatively short interest rate duration in our portfolios at the moment. >> the minutes from the april meeting suggested that the fed -- i don't want to say they're fearful but they're mindful of what could happen when they do raise rates that first time. we could see that proverbial taper tantrum like we saw a few minutes ago. do you think that is what will happen? >> there may be a fair amount of volatility but i doubt it because it's been clear about what their intentions are. if you haven't heard the plan is to raise interest rates, you haven't been awake for about a year now. i think the most likely scenario though is if the fed

is raising rates and the dollar continues to appreciate that's going to hold down inflation. we could see more of a flattening of the yield curve than anything else. it certainly could give us a lot of volatility in the short run. i'm not sure it's going to give us what we have a taper tantrum, which was a parallel shift in the yield curve. >> the markets really look forward to it. we should start normalizing rates, from 0 to 0.25%, there's not much the fed can do. you want to get arrows in your quiver, raise rates so the next time the economy falters, they have something to work with. the economy can still perform with higher fed fund rates. the fed will have something to work with, to be able to cut rates at some point. >> you see that in financials which are the outperformers in today's session on that view of higher interest rates. is that a good thing that those are the leaders in the session on higher rates? >> well the concern i have with financials is the potential for

the yield curve to flatten. the expectation of rising rates, particularly in the short end, we see the curve flattening. with that we see it relatively negative for those net interest margins facing banks. combine that with where we are in the credit cycle, we see more default risk coming through. rising credit risk could be relatively negative for banks. i'd be cautious on financials particularly after an increase in valuations. >> interesting. >> rick, i'll ask sara's question. if the dollar is having a first positive week in a while, do you think we're getting ready to resume the rally that started earlier this year where everybody was thinking we were going to get parody again the euro? >> listen if we take the fed at its word within that does get difficult but if we take the fed at its word the dollar is idling getting ready for another move shot in my opinion, specifically about raising rates and normalization. keep in mind there are a lot of issues that the fed has that are

highly highly highly subjective, not objective. we are running into gdp but we overlook other things. fed is looking for raez many traders think, to raise rates. i'm not sure that the market is ready for that ideal time because it's not about the glide path that you hold the portfolio. that is about when it occurs. what guide path is almost the easiest thing at this point. >> right. >> one and done raising rates slowly, i think people get that. the date is happens, i'll see what date it does happen and see whose portfolios are ready for it to happen. >> when we can talk about what the fed is going to do or not this whole time it comes down to the data. that's what they're telling us. that's what will depend on whether this will continue. is the data telling you anything clearly? are you seeing confirmation that the first quarter slump is behind us and we can recover? >> we really haven't seen a lot

of good economic data since the -- since the end of the first quarter. it's been pretty soft. but the employment side looks pretty good. and the inflation indicator that's starting to turn up a little bit and housing activity has picked up a bit. that's been the last thing that needs to pick up in the cycle. so it's probably good enough. it's not good but it's good enough. >> ken mahoney, are where you going to make money right now? >> we still like equities. to her point, this choppy economic data reminds me of a seinfeld episode when he plays even steve. we've been dealing with the choppy economic news like that seinfeld episode. good news in the morning, then the afternoon, looks like we're not getting any traction. i want to stay long equities. we like domestic. we'll watch the vix sharply. broadly etfs, domestics.

>> i know you have been all over the transports this week. they're set for their worst week since the end of march. >> right. >> the question is is that a worrisome signal? >> that's incredibly important part of the economy as well. you are playing even steven. it's clear nobody is the master of their own domain in this market. >> have a good long weekend. see you later. >> heading to the close, we have 49 minutes left in the trading session with the dow down 15 points. it's the s&p and the nasdaq that might hit all-time highs today. >> if they close higher which the s&p is just about flat right now. >> coming up hot summer, hot stock. dom chu will highlight four companies that will bring sizzle to your portfolio. >> when we come back, ola havana. we'll have the latest developments and speak with a business pro who is ready to pounce once the green light is

fully lit. that's to come on "closing bell." here at the td ameritrade trader group, they work all the time. sup jj? working hard? working 24/7 on mobile trader, rated #1 trading app in the app store. it lets you trade stocks options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this.

the u.s. and cuba failed to reach a deal on re-establishing

diplomat relations and re-opening embassies. that was the key in each country. this despite high expectation of positive outcome today. >> our chief international correspondent michelle caruso-cabrera is in washington. she explains what went wrong and what it means now. michelle? >> according to assistant secretary of state roberta jacobson there are still issues of the, quote, fngsing of the embassy in havana. when she testified in front of congress on wednesday, one of the u.s.'s demands is that u.s. diplomats be able to move freely about the island. that may still be the issue. however, the negotiations are not over. both jacobson and her cuban counterpart said the two sides will keep talking in the coming weeks. >> in the end, inevitably come to some tough issues before you get agreement but we made great process. i remain optimistic that we will

conclude but we still have things to iron out. >> the u.s. side worked very hard to fill one of the cuban governments key demands, finding a u.s. bank that would give them a bank account. stonegate in florida finally agreed. it's unclear that the u.s. has gotten anything in return. guys, back to you. >> michelle, thanks. stay right there. let's talk about this whether or not things eventually shake out, talk about some of the specific business opportunities that might exist in cuba. >> joining us also in this conversation peter quinter, former legal counsel or u.s. customs and border protection agency in florida. is today a setback? your mission to cuba with business leaders? >> we are very excited about going to cuba on wednesday through saturday. this is not a setback. the next few years will be challenging for both cuban administration and the obama administration. years from now five years from now, we'll look back at this

time and think what a great thing it was that these negotiations did take place and that they will result in u.s. embassy openings in cuba and the u.s. flags flying in havana. >> michelle you and i talk about this all the time. expectations are very high but the hurdles still remain. most of them are in cuba aren't they? >> yes. first of all, there's still the u.s. embargoes who do a lot of business down there, it's still illegal. second, it's not clear if the embargo went away the cuban government wants business down there. they've said for years they welcome foreign investment. remember, every other country in the world can invest in cuba but there's actually little foreign direct investment in cuba because they have anti-capital laws in place and regulations, which it's the taxation they put on them when it comes to hiring local population. there's all kinds of things that a business wouldn't necessarily want to start a business there

or investors wouldn't necessarily want to invest in there. >> how are you handling the challenges? >> there are definitely challenges. there is a cuba embargo by the united states. there are many exceptions. there has been significant business between u.s. companies and the cuban company. which will expand. as you probably know president obama in january loosened the embargo a little bit allowing for a little bit more trade. there are several industries which will grow quickly once the embargo again is reduced. >> another problem, peter, maybe the biggest problem is the lack of infrastructure in cuba to begin this process. what are you and your lawyer friends hoping to accomplish when you go there next week? what's the objective when you get there? >> we are meeting with government officials from cuba. meeting with also the legal community in cuba. and basically my counterpart, the international part in havana, we're hoping to have a

greater understanding of the legal system in cuba and educate them about our legal system. >> yes there's so much optimism we hear about the potential for this market we saw carlos gutierrez on "squawk box" earlier this week the commerce secretary, this morning it was -- it's been a long day -- talking about how it could be the next singapore. >> it's possible if they did the right things. it's 11 million people completely uncapped. is there opportunity there? absolutely there is. the question is, how is it all going to play out when your guest talks about the opportunities these different businesses that can go down there, there can be telecom down there, more internet down there. but the cuban government has been allowed to buy those products from other countries and they haven't done so. learning about the legal system in cuba, remember, every single lawyer in cuba still works for the cuban government. because that is one of the sectors of the economy that the cuban government says they're

still going to control. >> what do you make of that peter? i know you're mindful of that but they don't exactly have what we call a free market system set up over there. >> exactly true. i look at it as the way you should have looked at china. 30 years ago, all the chinese lawyers work for the chinese government. now china is the number one trading partner with the state of florida. one of top three with the united states. i hope 11 million people in cuba will also understand the benefits of a free government democracy, capitalism and trade with us. five years from now, we'll look back at this as a water breaking period. >> he puts his finger on a key question many are asking right now. is cuba right now china 1980? is this the moment where it's really changing? we don't know yet. >> let's all gather again in 30 years. all right. you got it. michelle, thank you as always. peter qu nextinter, thanks for

joining us. let us know how the trip goes next week. >> you bet. >> the dow down 12 points. we're waiting for the s&p. if it finishes positive that would be an all-time high. >> we're also on nasdaq record watch. 5,092. we're above it. >> we're getting there. >> we still have 40 minutes left. anything can happen you. >> how the latest comments from the fed chief janet yellen moved the needle. where that stands steve liesman and a top bonn market pro- will be here to weigh in. and stocks that may be poised for hefty returns this summer some of the names on the list might surprise you. >> i can't wait. u decide what to do. with tools that help you see how market activity is affecting your positions. so when the time comes to decide whether to scale in or scale out... you can make your move wherever you are. and start working on your next big idea. ♪ ♪

let's take a look at the major indices. while it looks like not a whole lot is going on in terms of the point move it's at a different level. if we stay positive, that will be a record high closing. thes in back is kbofabove 5,100, also an all-time high. >> as you know memorial day weekend is here. time for summer stock picks. >> we have quite awe few-- a few that may perform. we look over the past decade in the stocks in the s&p that show

good outperformance between memorial day and labor day. we'll use that as our summer season. take a look at these numbers. again, on average over the past ten years between memorial day and labor day, these are some of the stocks that do well. cable vision shares have been hot as of late because of all the cable news talk and the cable vision news talk and all the consolidation that may happen with cable companies. on average, stock is up 9% this past season. over the past ten years, it's been up 80% of the time. amazon.com, a retailer, maybe seasonably, not a strong sector to be in amazon shares are on average up about 8% each of the past ten seasons. they're up 90% of the time. over the past ten years, a high probability trade. apple shares up 90% of the time. on average they go up by 13%. the single best performing stock, it's been positive 100% of the time over the last ten

years and up an average of 20% during this season shares of alexion pharmaceuticals, the only stock in the s&p 500 that we found that can show 100% positive performance and a 20% gain. maybe some shares to watch. if history is a guide, it's not an indicator of future performance. some traders may look towards historical trends as an indicator for where stocks may go. >> 100%. that's pretty much a guarantee right there. >> it may sound like that but that "g" word is tough. this probably will be the year that probably the trend breaks. who knows, right? >> he has to say that. dom, thank you very much. summer is unofficially here. is the living easy if you make these stocks to buy? that's good, right? >> very good. let's talk to david. happy friday. >> likewise. great sumner store for us. i thought dominick's stock ideas

were interesting with the critical element that for active investors to win, it's a longer term focus than simply the summer but having said that i think amazon is certainly a compelling idea here. has been since -- especially since late 2014 especially on a revenue and earnings growth basis. a clear double plus on that. apple on a valuation and a free cash flow basis despite it being a mega mega cap stock, looks quite compelling. alexion on the bio techtech area it's a clear winner the biotech area. that's compelling, too. and quickly on cablevision, i'd rather own the debt or the senior bank loans than the equity itself. i think you're being paid better for the yield to own a five-year maturity on cable vision versus the underlying stock. >> david on alexion and biotech

and health care in general, the run has been tremendous. up 9.5% so far this year. over the last 12 months up 27% plus. do you have to be wary at going into these companies at these valuations? >> you certainly do. but in the case of alexion, price to earnings roughly 28 times. it's not that inexpensive to the group but to its own long-term average it's trading near a discounted valuation. they did miss last quarter partly on currency. some suspicion on the recent acquisition. i think longer term that's quite positive. and the key drug here is the solaris which has a long-time pat enand makes the stock a more compelling long-term opportunity. >> sara and i were talking about the transports. they've been beaten down here perhaps in part because of the higher oil and the outlook for oil at this point.

what about the financials? if in fact the fed will start raising rates any time soon this year, that would seem to benefit them. are those that you would look at now or what are you going to do here? >> specifically to the transports on energy. there are fewer -- let's call them give me puts after six month years of a bull run. trinity, symbol trn, terry, richard, nancy, it's a beneficiary of u.s. shale and makes the transports interesting. and financials are more interested in the specialty financials the asset managers and the consumer financials that i am the bank stocks at this point in the cycle. >> interesting you highlight u.s. multinationals. is that where you think there's value after they've been a little -- i guess they underperformed because of the strength in the u.s. dollar. >> they have.

if you look at the dollar having appreciated swiftly and strongly over the last six to nine months, the dollar in the near term takes a pause here. u.s. multinationals on a valuation basis price to earnings or free cash flow i think they look more interesting, particularly given the cash flow and the return on capital that they're providing today. >> all right. david, always good to see you. have a nice long weekend. >> likewise. my pleasure. >> it's getting noisy. there's ice cream also. time for a "cnbc news update" with sue herera. >> i remember bill i know. especially if you give them sugar. you never know what's going to happen. here's what's happening in other parts of the world, a small offshore oil platform caught fire in shallow water off the coast of louisiana. all 28 workers aboard were evacuated and taken ashore. luckily nobody was hurt. the rig was owned by a privately held texas petroleum investment

company. the european yawn onre-affirmed its partnership with six post-soviet nations but offered them no new prospects of future membership in the western bloc. that came during the beginning of a two-day meeting. iraq's vice president is criticizing the u.s.-led bombing coalition for not achieving significant results in driving out isis militants in iraq and syria. the comments made at the world economic forum in jordan. and a pair of luxury melons yes, you heard me right, luxury melons sold for about $12,000 today in japan. this at the year's first auction of ubari king melons in sapporo. last year a pair went for more than $20,000. the buyer was a supermarket chain in central japan. i think that's enough said bill. >> i don't know why tulips come to mind.

>> melons are a luxury gift if japan. >> yes, they are. it does remine me of the story in the market when tulips were going for, you know millions of dollars. >> crazy amount. thank you, sue. >> see you later, guys. less than a half hour to go before the closing bell. it looks like in terms of the leader shship technology ab financials and consumer discretionary are in the green. >> unilever own good humor and they're handing out free ice cream today. >> i'm not allowed to have any until the show is over. >> i'm dieing to have chocolate ice cream before the close. the guy standing there has promised to give her one. >> it's also getting noisy ahead of a three-day weekend. >> incredibly noisy. >> the traders get a little rowdy. we are looking at a record high. that's a record note on the s&p as long as we stay green. >> i can't even hear her right now. coming up warren buffett says do not blame the rich for

income inequality. he thinks the earned income tax credit may offer the best solution to narrowing the wealth gap. and up next what fed chief janet yellen's latest comments boil down to when it comes to the path to higher interest rates. steve liesman an a top bond market pro will be here to weigh in. we'll be right back. it's part adrenaline and part adventure. it's part geek and part chic. it's part relaxation and part exhilaration. it's part sports car and part suv. and the best part? the 2015 gla. it's 100% mercedes-benz. can a business have a mind? a subconscious.

a knack for predicting the future. reflexes faster than the speed of thought. can a business have a spirit? can a business have a soul? can a business be...alive? more and more, data is visual. in fact, the number of mris has increased by ten percent a year. and a radiologist might view a thousand images to find one tiny abnormality in shape, contrast or movement. because it's so challenging a research project is teaching ibm watson to see. in the future, it could help clinicians spot key patterns quickly and precisely. ibm watson is working to make healthcare smarter every day.

all right. the dow is down 17 points. we have about 24 points left in the trading session here. s&p will flirt with us here. down half a point. >> it keeps flipping around that unchanged line. >> any positive close will be a new all-time high for that index. the nasdaq needs to close above 5,092 to be at an all-time there. we're there. let's see if we stay there. >> what about the dollar. >> it's sharply higher be, up a percent. a reversal in the current trend. part of that has to do with the fed and the economy. fed chief janet yellen delivering a speech on the economy just a short time ago.

she says the federal reserve is on track to hike interest rates this year if the economic data permits. steve liesman joining us with more of the highlights. steve? >> i'm looking at that dollar chart, sara. i don't understand why the rest of the market doesn't see the yellen speech as hawkish as the dollar market did. anyway, the fed chair saying in a speech in providence she believes a rate hike will be appropriate this year if the economy improves as she expected. that's what she expects, the economy to strengthen saying much of the economic headwinds, she thinks they're going it ease. >> this apparent slowdown was largely the result of a variety of transistorty factors that occurred at the same time. including the unusually cold and snowy winter and the labor dispute reports on the west coast, both of which likely disrupted some economic activity. >> apparently she was speaking on the set of superman 7. yellen also cited forces holding

back u.s. growth including global economic weakness and muted business investment. she seemed confident that inflation would rise toward the fed's 2% target as the economy improves and that the job market is approaching full strength but not there quite yet. bill? >> as you probably saw, she was in providence. she went to school at brown. she was going home, really. >> it was funny with the plan the in the background. not your typical fed backdrop. >> steve stay right there. this is kevin arnold head of foreign exchange rate at ubs. why do you think the dollar was reacting the way it was today. >> it was clear, she had plans for the weekend. nothing she said today surprised anyone. she's still on point. no one should be surprised by what she said.

any story about high rates shouldn't be a surprise to anyone. the dollar was stronger beforehand. >> cpi. >> we had buys straight after that number. the dollar has been strong all day. any sense of stability or any small strength of inflation numbers or job numbers. >> steve, it's have weird virtuous cycle that's going on right now. the fed is dependent on the u.s. economy and the data to make their move that they're itching to make by the end of the year, yet, the dollar is strengthening on better economic data. we know that's on the fed's radar. >> somebody said to me i can't remember who it was, some economic official said i think we just showed that the u.s. economy is not ready for a stronger dollar. that was -- >> that was david szerba. he was saying this isn't the

'90s. we can't absorb this very strong u.s. dollar. >> we just prove something, that you have a better memory than i do, sara among other things. what's interesting here is that it's eased off a little bit and the inflation -- the deflationary impulse has worked its way through. by the time the fed gets around june or july if the stability in the inflation numbers are proven to be still there, then i think you're going to have the fed may be ready to hike maybe july, september, right in there. >> you're betting september. >> september. >> they can't avoid a stronger dollar when they start raising rates. >> no. as long as we don't see a rate much above 1.15 for the euro ten-year treasuries doing what they're doing, we're set for a calm and quiet summer. >> can they handle interest

rates and is it enough that the rest of the world seems to be in easy mode still pumping qe into their economies? >> absolutely. the ten-year rate at 2.20, even as high as 3.15 we can sustain. the treasury i don't think it's not going to be -- >> steve, i maintain, not that i'm the expert you are, that the fed is just itching to raise rates at least one time before the end of this year. stanley fisher has made that clear in a previous speech. not yesterday but one before that. i sense that's what janet yellen is signaling right now as well don't you? >> i think that's absolutely right. it's a very important thing to remember that in general the bias here is to hike and they need confirmation here but they don't need a lot of confirmation. i think in general the job market is where the fed wants it to be we certainly on a trajectory. and it needs proof from the inflation numbers.

that proof should come as i said earlier, when the deflation from oil works its way through the system as well as from the dollar. that's going to take a couple months. we already think the may numbers of inflation will be higher because you had a decline in the gasoline prices this morning from the cpi. next month that will go away and probably show up positive. >> i'm curious, i know you're announcing here a strategic relationship with the new york stock exchange. here on bonds to give customers access to corporate bond liquidity. that's a huge theme right now and a huge worry about whether there's enough corporate bonds at liquidity. >> liquidity is the main topic on all our investment lists right now. they care about the risk capital and 1r789 bankinvestment banks. anything we can do that can improve that debate improve

that discussion around liquidcy we think that's a welcome addition to that debate. the darr's open to talk about it. i think they can do interesting things over the next few months. >> looking forward to that. >> steve, as always, have a good weekend. >> you too. >> art cashin signaled that the bias into the close is to the downside. they have about 500 million dollars of stock to sell into the close. we'll see if that takes some of the topspin off this market with the dow down 22 the s&p down a fraction at the moment and the nasdaq is still up 6 points. we're five points above the all-time there. >> which means we still could hit it. we'll tell you what's moving in the final trading hour of the week. later, wait till you hear what is holding up apple tv from becoming as ubiquitous as apple pie. the holdup could be a game changer. we have the reporter who broke the story.

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. you can have the greatest dreams in the world, but unless you can finance those dreams, it doesn't happen. at the time that the bankruptcy filing was done, the public lighting authority had a hard time of finding a bank. citi did not run away from the table like some other bankers did. citi had the strength to help us go to the credit markets and raise the money.

it's a brighter day in detroit. people can see better when they're out doing their tasks, young people are moving back in town the kids are feeling safer while they walk to school. and folks are making investments and the community is moving forward. 40% of the lights were out, but they're not out for long.they're coming back.

all right. here we go. less than 15 minutes to go before the "closing bell." we're seeing the nasdaq trading in record territory. s&p 500 is down 2, just backing

away from what could be a record close, if we close positive. the dow is down 28 points. it is being led right now by goldman sachs and apple. >> we'll see if that continues here. dominic chu is rounding up some of the other movers ahead of the long memorial day weekend. >> salesforce.com is getting a list after david faber reported that microsoft and salesforce had held significant talks this past spring about a purchase of salesforce by microsoft but could not reach a deal over a pricing issue. so, again, those shares up by 2.5% moving just off their best levels today. moving on to fresh market here as many as six brokerages cut their target prices on this grocery store chain by as much as $8 to $30 after the company's first quarter results missed estimates due to store closure, the harsh winter and amid higher promotion costs. those shares down by 5%. nothing runs like a deere. the company sold less farm

equipment but thanks to the housing market, construction sales did rise. those shares very much near their best levels today. bill sara back over to you. >> nothing runs like sara eisen when there's chocolate ice cream behind us. it's sitting right behind us. >> you're talking dom jealous. >> sounds good. >> 12 points left in the trading session with the dow starting to move lower. 500 million taking a bite out of market here with the dow down 30 points. s&p down 2. i don't know it's going to be close for the nasdaq. >> slipping lower but still in record territory. 5,092 is the level you want to watch. much more to come on "closing bell." and what could be delaying apple tv? reaction to warren buffett's prescription for income inequality. and memorial day weekend, it is time for the indy 500.

we'll talk to the ceo of the celebrated holiday race when we come back.

there is an ancient rhythm... [♪] that flows through all things... through rocky spires... [♪] and ocean's swell... [♪] the endless... stillness of green... [♪] and in the restless depths of human hearts... [♪] the voice of the wild within. i don't know if they're going to do it. the number to watch on nasdaq is

5,092.09. >> just about there. >> it's very close right now. this 500 million to sell that art cashin pointed out is taking a toll here with the dow down 36 and the s&p down 3. david darst independent consultant joins us right now. this market, the hallmark has been flat lining. you're not getting much volatility with all the economic data, the better housing starts this week. the -- >> four vs. >> four vs. >> low volume. record highs on extremely low volume. low volatility. 12.5 long-term average is 20 as you both know. low validation. so we haven't had people come in and start buying. not even volume but we haven't had this. and finally, we've not had the final "v," bill is the

volatility, the volume the validation and the values are not there compelling. they're a touch to the high side. the valuations are a touch to the high side. that's why we have this standoff. martin bigg would use this unclear thing. we're going to have to wait to see how the second quarter profits are. not only the second quarter gdp. i've heard you mention this week time and again the gdp now. it's at 0.7% for the second quarter. that's the estimate of the atlanta fed. >> you've got this period this week will be durable goods orders, industrial production. this week will be the chicago purchasing manager's index and the second iteration of the first quarter gdp which is likely to be negative now with that negative -- the huge trade deficit at 51 billion. so it's very very -- it's like taking a nap. the market is taking a nap. is it going to wake up in a good

mood? is it going to wake up in a bad mood? four vs, volume validation. >> and the other two. >> you're describing a lack of conviction. david, if the data does turn better that you talk about and we see the earnings recovery starting to get priced in is that a good sign that we're reacting positively to positive data? >> it's a great point because the last five years since the -- six years since the bottom of the market people have put 600 billion into equity funds and equity etfs. they put 1.3 trillion into bonds. it really has not been in spite of some of the biotech and the cloud computing and the social networks, it has been fought the whole way up by the individual investor, the retail investor. interestingly enough in the united states we have 44% of financial assets are in equity. europe is 34%. japan is 10%. >> wow. >> they have 50 some percent in

cash and short-term security. that's another reason why we favor japan, bill sara, and we favor europe. another thing the market has ignored is better news flow out of europe and japan. china, no. europe and japan. we have this standoff glass is half full glass is half empty market. i believe the individual will come in if things start to look better in the second half. >> all right. we'll see. we'll take a quick break, bring david back with our closing countdown as we head toward the close for the long weekend. >> looks like financials lost their gain. only s&p group that's positive is technology. after the bell apple envisions an apple tv in every home but it's facing a huge speed bump which could be of its own making. our pros will weigh in on the challenges facing the tech tv business. you're watching cnbc, first in business worldwide. mmm-mmm. breathe. i love it here.

we are never moving to the suburbs. we are never getting one of those (minivan). we are never having another kid. i'm pregnant. i am never letting go. for all the nevers in life state farm is there. the technology changes the design evolves the engineering advances. but the passion to drive a mercedes-benz is something that is common... to every generation of enthusiast. the 2015 dream machines, from mercedes-benz. today's icons. tomorrow's legends. visit the dream machine event today for up to $3,500 towards purchase.

[ 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 comes to decide whether to scale

in or scale out... you can make your move wherever you are. and start working on your next big idea. ♪ ♪ two minutes left here. we are pulling back. the selling will take a toll on the ability of these two averages especially to hit all-time highs today. the s&p now down 4 points. and the nasdaq which looked like a lock about an hour ago for a new all-time high is now negative. it's 2 points shy of that all-time high. the dow down 47 points right now. at 18,238. let me show you the vix, the volatility index. this is a year-to-date chart

we'll show you, just this continued move lower, bob pisani and david darst. we're at the year's low right now and earlier in the session we were below 12. haven't been there in a while. >> it hit the low as yellen's speech came out and everyone saw there is nothing new. she was spewing the standard line. we dropped down at this point. but remember something, we have holidays here and the vix looked out 30 days. there's not as many trading days. that's another reason the vix may be lower, just sort of a technical reason overall. >> it feels like a coiled spring. >> well said. there's this complacency and non nonchalant nonchalant. coil spring is perfect. >> it goes very well with a chianti. >> i have to leave it there. >> thank you, professor, as

well. >> i want the four vs by the way. >> big housing data next week. >> how'sing is another key component. we'll talk about this next hour as well. we are going out with the lows of the session, the dow down 47 s&p down 4 and the nasdaq down as well. stay tuned. much more coming up now on the second hour of the "closing bell." welcome to the "closing bell." i'm sara eisen in today for kelly evans, bill griffeth rejoining me. here's how we are finishing up the day on wall street. it looks like we couldn't quite make another record high for the s&p 500. it is ending down a little less than 5 points. the dow ending down more than 50 points, lower than where it was all afternoon. the nasdaq also ending in the red. after being at a record high pretty much during the whole session. let's bring in today's panel. cnbc contributor evan newmark,

michael santoli from yahoo! finance and our very own robert frank. did we learn anything new from janet yellen? >> reiteration, obviously speaking aof the bond market closed you thought maybe she'd have something that would come as a slight surprise. i think the mark set hungry for dovish words. they didn't get any here. so no, nothing too new. >> evan the market flat lining. >> boy. boy. >> before summertime. >> the calm before the storm or the calm before the calm. >> it's the old line from the westerns, you know sure is quiet, yeah too quiet. >> yes. >> it's weird. i want to be able to say that you know something bad is going to happen. it actually feels like the calm before a dulless summer. i know that will come back to bite me. >> we have greg from "the wall

street journal" joining us as well. what did you get out of this? >> when they tell you that they're data-dependent were they're going out of their way to not tell you anything. nothing had you here just move along. watch the data. she calls the first quarter weakness transitory. it is transitory in the sense that nobody expects another zero. the tracking number for q2 are pretty terrible. down around 2%. you put a zero in the first quarter with 2% in the second quarter. a lousy first half. that does not to me sound like an economy strong enough to withstand monetary tightening. the fact that she still is sang sanguin tells me she's not optimistic about that. >> another updata point she made is on the labor market where she said it was nearing full strength. not quite there yet. that was interesting to hear a

fed chair saying we're almost at full employment. >> that was interesting. she layered on these caveats about how she didn't think the unemployment rate captured the degree of slack. she thought there was a significant number of people who aren't showing up in the numbers. on the dovish side with reference to wages, she said they're very low. they've been looking for acceleration wages as a sign of true tightness. she said it's still only 2%. if you look at the employment cost index, that number is showing more strength. she basically completely dismissed that. it was buried in a footnote. they do not portray the picture of a fed chairwoman who is anxious to pull the trigger. >> what's capturing your attention, frank? >> will the data in september be that much different from what it is now? no. they have a bias. they want to do something this year to normalize. the question is will data get in their way? i don't think so.

but this does feel more like a sort of pre-labor day friday than a prememorial day. it feels look the dog days of august right now in terms of thin traying volume. >> right. >> not a lot to go on. >> sure. >> this is a sleepy market. >> any reason mike santoli that technology was the outperformer? the only s&p group that was slightly positive and the nasdaq was doing better all day. >> this last little leg of the rally that's been performing well. i don't think it's a specific reason. people are looking for, you know liquid growth. that's what high technology is to be honest. also the m & a names, rumored m & a, breakup activist type names. >> boy. >> everyone wants the catalyst. >> wouldn't you have loved to be in the negotiations when marc benioff is negotiating with microsoft. benioff kept upping the price. >> and nadella wouldn't agree to

it. >> this may be the only time microsoft ever walked away from a deal because the price is too much. they are renowned for over paying. >> they wanted to pay 55 billion. he wanted 70 billion. >> you remember skype, remember that one? >> where they walked away from the deal. >> they didn't walk away for skype. they ended up paying $8 billion for something that was basically worth nothing. >> given these valuations and the fact that the data is not giving a clear signal nor is the chairman of the federal reserve, where do you find value? >> i don't think -- i mean i think assets are fully priced. that's the essential problem for a lot of investors right now. i think bonds are relatively expensive. i think the stock market is not super crazy but it's not cheap. i think the art market for example, is ridiculously priced. >> don't you go to the stocks because it is least expensive. >> i'm sitting in a lot of cash. that's not atypical of large investors out there.

sitting on a lot of cash waiting for the bond market. >> greg ip what harm would one bump do by the fed at this point? what would that do? >> well look what happened in 2013 when bernanke -- >> that was a -- are you suggesting that that's what would happen? >> well i'm not predicting that it's not exactly what would happen. the mere anticipation of a central bank moving from super easy to not quite super easy does seem to rattle the markets. you were talking, mike was mentioning low vol, thin volumes, dog days of summer feel this weekend. i totally agree but that's the kind of low vol environment that's ready to disintegrate when something catches them by surprise. when we were seeing a federal reserve that was moving resolutely towards tightening in the face of a run of weak data like we've seen i think it's clear to see that volatility pick up again. this is what has to be on the mind of janet yellen.

she might look at the stock market an say everything is great but the data coming in is not speaking to an economy that supports like an s&p at 2100. >> jim seymour from "fast money" is in the saddle now. what about this thinly traded market? you can trade individual stocks that are moving but the overall mark set flat lining, isn't it? >> yes. i think if you look back over the last few weeks, people that get overly excited about an adjustment in the rate curve. everybody thought the euro was going through parody. they had to get back in line with that. when you ask me about the market, a couple things stand out. listen to the pessimism out there. if you look at cash levels there's the lowest allocation toward equity the highest level of cash that we've seen in many years. i think it's great work which says that the pain trade is to the up side. the s&p, most people are not expecting this move, expecting

the dog days of summer. why are we so negative in valuations aren't terrible. the fed isn't going to move too quickly. i look at the global economy and see strength. i see bank of japan, china overnight. look at the chinese internet phase. the rest of the world is actually moving. europe loves a weak euro. >> didn't china hill a multi-year high in terms of the equity market overnight? you have the stimulus flowing everywhere else on the globe except for the u.s. do you increase your exposure to foreign equities or come back to the u.s.? >> i think if people had quickly reversed on europe over the last two or three weeks and again, i think position has moved so quickly here a move back into europe was interesting. the hot cpi this morning, everyone is talking about the labor market on the panel, the hot cpi at least put the dollar back in play or is has been in the last couple days. those are the trades you need to follow here. yes, i think japan has been working, japan inits to be the best performing developed market. i think europe has underperformed on this euro move

up. it will come back with the euro move lower. emerging markets are part of the trade that could go higher. >> mr. cash? >> i'm waiting for the bond market. i think a lot of people are waiting for the bond market meaning i've been negative on the bond market for quite a while. i think -- >> you're not alone. >> i think yields will continue to rise and people who are sitting in cash don't want to buy a long-term bond. or a ten-year at 2.2 that could be yielding 2.75. that's a money losing trade. that's just bad -- >> terms of the equity market valuations, i get it they're historically high. within that you can find pockets of winners and a value. john deere. it's finally seeing a turn. we're still in earnings season. there's a lot else going on besides the federal reserve. >> the whole problem is nobody wants to be caught pouring money into fkacebook at $83 a share.

facebook is not going to double in the next year. i could be wrong. >> no i was not saying that since it was in the 60s. i can promise you facebook will not double over the next year. people who are sitting there going, the trainer idea tim seymour, it's the idea of buy high and watch it go higher. >> that's not my idea. that's not my idea buddy. >> if you're an investor, i think that's a terrible way to invest. >> defend yourself tim. >> he doesn't know what i do for a living. i'm not sure how he can comment on it second of all, if you look at big cap tech, i'mnot talking about facebook. i'm talking about apple, cisco, intel. by historical standards they are not expensive. so, sure, if you want to talk about the yield curve, do i think rates are going to move to 275? sure. is that going to change the

dynamic of equity market? no. >> campbell soup came out with great earnings today. it's been not a loved stock and it was one of the best performers in the s&p 500. we still have yesterday stock stories to talk about. be sure to catch tim seymour on the other "fast money" traders, 5:00 p.m. they'll be talking to jonathan krinsky who thinks the dow is doing something it hasn't done in the last 100 years. find out what it is. >> greg ip always good to see you. have a good long weekend. when we come back apple's highly anticipated tv subscription service may now be on the back burner. we'll tell you why apple may delay the service and for how long. that's straight ahead. and supporters of raising the minimum wage saying it will help poor workers. why does warren buffett say it will crush the very people it is intended to help? you're watching cnbc, first in business worldwide.

good. very good. you see something moving off the shelves and your first thought is to investigate the company. you are type e*. yes, investment opportunities can be anywhere... or not. but you know the difference. e*trade's bar code scanner. shorten the distance between intuition and action. e*trade opportunity is everywhere.

so apple may have called off plans to make a physical tv set. that's not stopping the company from thinking outside the box. it is reportedly working on getting live programming from local television stations on to

apple tv. >> now if apple succeeds it would be the first company with local tv on an over-the-top or ott service. joining us with more on that dawn from recode who co-authored that report. we've heard so many different iterations of what they may or may not be working on. can you lay it out for us? >> so you know as of the moment apple is now engaged in negotiations with the major broadcast networks. trying to secure rights to stream or provide via the internet local programming as well as the network programming. apple is thinking this is a great way to differentiate its over the top or internet delivered tv service from some of the others in the marketplace, like fling service does some of this as does sony

similar service. apple is looking for a way to expand what it already offers and provide something that's a little different. something that's unique. >> what's the problem with this? and why are you guys reporting that it could actually hold up apple's tv from going live and from coming i guess, in front of consumers when it plans to? >> apple is smartly thinking this could be a great feature to introduce with the new fall season that starts in september. smart thinking. because apple is looking to carry the local -- programming of local affiliates local news and other sorts of programming that are available in local markets, this is a complex negotiation. the networks don't necessarily own the local stations. they may be affiliated but they may not be owned by the networks. the networks have to go about assembling the rights to deliver the local programming in this way and also get the legal clearances to be able to carry the local broadcasts and even local commercials that are carried out by local stations.

>> if i'm tim cook i mean i must love the attention he gets we obsess over every new product that's coming out. the apple watch, we're past that, now we're on to apple tv. >> what strikes me about this report is they're making it a pray or the to get local tv which means they want it to be more of a clean replacement for the cable bundle as opposed to one of the streaming services. it's nice to have netflix says they want to be indispensable. it isn't a one-for-one replacement. >> is there any legal issues here? we saw what happened to aereoin the supreme court. does apple need to consider this? >> the difference between aereoand apple is apple asked for permission, aereo didn't. that's the only difference. >> lesson learned. >> yes. i guess the apple worldwide

developers' conference is in a few weeks. are we going to get an update here? >> this is the game that we technology reporters will play between now and june when the developer conference happens. you know we'll try to secretary guess what apple will be announcing. apple will have thousand of its developer community available. it would seem logical it would like to announce advancement in its apple tv products which last had a major refresh back in 2012. we're expecting something. we'll see. >> dawn what strikes me as so smart about this local tv has proven to be very strong with all the disruption in media. sports, traffic and weather, people still really want that. is apple tuned in to how strong local -- is that what's driving this effort to get it on to that platform? >> i think, you know i think that's part of the equation. certainly the networks appreciate how strongly people are affiliated with their local tv station. that's, you know with the local content. people still here in l.a. will

turn on their television sets if there's a good car chase happening. people really connected to their local stations. so apple has to be aware of it. it's been in the space for a while. it's been savvy. the networks certainly appreciate the value. >> i must be living on a different planet. i haven't watched local tv in aeon aeons. >> i don't watch car chases. i don't watch to see what happens -- >> you my friend are missing out. >> then you -- >> i'm trying to understand what is it about local tv? i have to know there's a street fair in queens? >> people like to know what's happening in their neighborhood. so i guess, dawn the question is how long will this take for tim cook to broker all of these negotiations so they can put this out there? >> i wish i could tell you. we know from what we've been told apple is hoping to hit the fall season. we'll see if they can speed the negotiations along. we'll see. >> i've often said somebody has to come along with car chase tv

because -- and just play back the old ones. it doesn't matter if it's live or not. >> there's nothing better. >> they love watching the car chases. >> if you watch a local news station, you don't know when there's going to be a good new york area car chase. that's a billion dollar idea. >> thank you. >> at least you'll know the weather. >> after the hockey fight network. >> after the hockey fight network. we have that too. thank you for joining us, dawn. >> thanks so much. there is a big push to raise the minimum wage to at least $15 an hour. >> just happened in california. >> but warren buffett is saying that could actually slash the number of low-skilled jobs. he's proposing a different solution to helping the poor workers. that is next. plus the biggest problem facing the legal marijuana industry continues to be access to financing. that's not cash. coming up we'll speak to one

financier who is trying to solve the pot business's banking problem. that's still to come. when you do business everywhere,

the challenges of keeping everyone working together can quickly become the only thing you think about. that's where at&t can help. with the tools and the network you need to make working as one easier than ever. virtually anywhere. leaving you free to focus on what matters most. over 20 million kids everyday in our country lack access to healthy food. for the first time american kids are slated to live a shorter life span than their parents. it's a problem that we can turn around and change. revolution foods is a company we started to provide access to healthy affordable, kid-inspired chef-crafted food. we looked at what are the aspects of food that will help set up kids for success? making sure foods are made with high quality ingredients and prepared fresh everyday. our collaboration with citi has helped us really accelerate the expansion

of our business in terms of how many communities we can serve. working with citi has also helped to fuel our innovation process and the speed at which we can bring new products into the grocery stores. we are employing 1,000 people across 27 urban areas and today, serve over 1 million meals a week. until every kid has built those life-long eating habits, we'll keep working. we have a news alert on california's drought and what they're trying to do about it. jane wells has the story from our san francisco bureau. jane? >> i'm jane wells in san francisco. an unprecedented move state water regulators have accepted a deal by some farmers who have some of the most senior rights to water in california. to voluntarily cut their water

usage by 25% in exchange for promises from the state that they will not ask for any further cuts. the state is saying quote, we are in uncharted territory. we've decided to give it a shot. over the next few weeks, those farmers, whoever chooses to join will provide a plan to reduce their water usage by 25%, whether it means by using less water or some other way. we don't know how big a difference this will make. the fact that these farmers have preemptively offered a deal and the state accepted it tells you how serious the drought situation is here. back to you. >> wow. >> absolutely. >> crazy. all right, jane, thanks very much. meantime billionaire warren buffett is weighing in on the wage debate. the minimum wage debate. he's penned this opinion peace in the "wall street journal" calling for the expansion of the earned income tax credit. instead of raising the minimum wage. >> buffett says this tax credit will reward workers without distorting the market.

but is this really the best answer to this growing debate on inequality? let's bring in the panel for their reaction. robert frank, this gets right to your wheelhouse of inequality. is buffett right. >> there are two things he said that struck me. the first is very important where he said the poor aren't poor because the rich are rich. that's something that a lot of people see him as a left leaning business person and for him to just put that out there at the top was very important. it sounds obvious but coming from him, it's a really important point that wealth of the wealthy is a different issue for why the middle class and the poor are struggling so much now. the second thing is he lays out all of this global technological issue that's expressing wages. the solution which is the earned income tax credit seems so minor relative to that broader sort of danger that's facing workers at the top. earned income tax credit is important, yes but when you talk to economists it's a small fix around the edges when you look at the broader issues

facing the middle class. >> what he's trying to do is say you can't legislate, you can't legislate prosperity for the working class of americans. >> still it's up to the government to solve it though. he doesn't talk about how much it would cost. >> the way he's doing it though, is through a tax credit as opposed to -- >> distorting the markets. >> distorting the underlying markets. >> which was his point about minimum wage increases that it would lead to lower employment if everyone was just paid a higher minimum wage. >> well he's basically going -- he's kind of saying let the market figure it out, let people on their own figure it out and use the incentive of tax credit. >> we call it tax credit but it's cash income. >> you file your return and they write you a check. >> it's effective by anybody who studied it. it costs $70 billion a year $66 billion or $70 billion, 2% of the federal budget. 80% or so of people who are eligible apply for it. it seems like it works in the limited scale it's offered. >> isn't this state by state issue?

he's calling on them to expand it. >> the issue is how do you help the unemployed? this helps the employed. >> no no. >> the issue right now is not how to help the unemployed. >> according to you. >> no. i think this general recognition -- >> we'll get below 5%. >> if you ask janet yellen what the biggest issue is it's wage increases, wage growth. >> for those with full-time jobs. the number of underemployed, the number of part-time employed the number of people who aren't eligible. >> i'll give you an example. >> yes. >> something that i think is important, there are people for example, who are making $60,000 to $70,000 a year above what would be considered -- that's a middle-class family. that's when a lot of these obamacare penalties kick in. i know people who are making that amount of money who, it's a we're thing, there are weird incentives built into the tax code. i think what warren buffett is

trying to do in some part is effect those taxes. >> is there any chance house republicans would agree to hearing this out? >> republicans have very supportive. >> you shook your head no. >> in theory, yes. i also feel like this is one of the things that got rated when they wanted to patch a hole in the highway bill. it's not something that's front of mind. you can look up the ronald reagan quotes where he supported things. >> that for me is what's getting buried warren buffett is dishing this off to the government. don't legislate raising the minimum wage because it's going to hurt the employment prospects for people who can't find a job otherwise but, you know how much is this going to cost the federal government to solve the problem? >> i don't think it would cost thatch depending upon -- >> you're saying 70 billion now. how much of an increase are we talking about down the road to satisfy what he's going after. >> the vast majority of taxes that are paid in the united states are not paid by the people that this is targeting.

you have -- i forget what the number is, over 40% of working americans don't pay income taxes. >> i don't think this is really going to be a big hole in the federal budget. >> i wonder on the other side of this as los angeles, you just mentioned agrees to do this in the future raise the minimum wage to 15 is that a concern what buffett is warning about, raising minimum waejge and leading to more job losses. >> it would be an expert in the city of los angeles. >> let's face it guys there's been no data that proves once and for all that raising the minimum wage costs jobs. come on. >> over five years. >> the cbo survey is the most effective way, yes, it costs $500,0005 5500,000 jobs but helps 1 million people. it helps the lowest skilled, least employable. >> i think the market you have to give it time.

ross stores announced they were going to raise. >> walmart. >> it's happening. >> from the private sector. >> yes. >> where it should happen. that's where it belongs. >> absolutely. absolutely. >> you're going to shrug your shoulders. >> no. what's also interesting about buffett's point it's not an education problem. >> not alone. >> that's right. >> yes. >> let's move on. we have a "cnbc news update" with sue herera. >> here's what's happening this hour, hillary clinton cam paning in new hampshire, touring a local brewery. a bit later she told reporters she's glad the state department has begun to release the e-mails sent and received from her private server during her tenure as secretary of state. a man tried to attack poland's president as he was arriving for an electoral rally in northwestern poland. the president gets out of the car and waves to spectators when a man approaches with his hand up. he's overpowered by security agents and the president is

quickly escorted inside. the eiffel tower was closed to the public as workers protested a rise in aggressive pick pocketing. ironically, the move came a day after french authorities claimed crimes against tourists in paris had dropped this year. and here's your feel-good story of the day. an immigrant couple left their entire fortune of $850,000 to the u.s. government. peter escaped czechoslovakia during world war ii. he met and married his wife joan an irish immigrant in canada. the pair made their way to seattle in the late 1950s and their identical wills make it clear their fortune was to go to the u.s. they had no children. and guys authorities kind of suspect that maybe it's a thank to the united states for giving them a fresh start after he escaped europe during world war ii. a great story. >> that is a great story. meanwhile, the faa estimates that drone sales will top $90

billion within this decade. when we come back we'll introduce you to one startup that's trying to cash in on that craze by matching builders and farmers with drone pilots. >> and as we mention, it is memorial day weekend. we have a tradition for you as american as barbecues and apple pie. the head of the indianapolis motor speedway tells us how much money is actually at stake during this year's indy 500. coming up on "closing bell."

nearly 400 companies received faa approval for commercial drone use. >> a startup is matching companies with drone pilots. jane wells has the details. jane? >> it's 2015 people. everybody wants to be the uber of -- fill in the blank. everybody also wants to have a drone. here's both. >> i'm going to arm the machine, arming. >> tom walklow is matched with a construction company looking for aerial photography thanks to sky catch, a $25 million startup in san francisco, backed by google ventures. it works like uber.

it's a matchmaker for drones in a program called work mode. where skycatch hopes to make money is showing analysis of video showing how things like how quickly your subcontractors are getting the job done so supervisors don't have to be on site. >> the real focus three, four five years down the road, it will be less on the ground. people will focus more on the data. that has always been our focus. >> with having a drone fly over it, you have an extra set of eyes that are looking at the space we're constructing in. clarity, accuracy better insight helps us to be more accurate when it comes to bulling it out. >> and of course there's less liability when you don't have to own the drone. skycatch does have faa exemptions for its own drones and guys it has certified nearly 1,000 pilots. back to you. >> i love that. >> something tells me it's not going to be the only one of those kind of companies.

>> no no no. you're thinking the same thing i am. a lot of things you can catch with a drone. >> thank you, jane. >> thanks jane. >> you bet. the marijuana business is booming in states where it's legal. the biggest hurdle pot entrepreneurs still face. up next, meet the man who wants to become the go-to banker in a marijuana world. >> i can't believe that's still a problem. what better way to thank our veterans than by giving them a good job. we'll talk to the head of one group that's helping vets turn their military skills into successful civilian careers. a great story, coming up on "closing bell."

we live in a world of mobile technology, but it is not the device that is mobile, it is you. real madrid have about 450 million fans. we're trying to give them all the feeling of being at the stadium. the microsoft cloud gives us the scalability to communicate exactly the content that people want to see. it will help people connect to their passion of living real madrid. we live in a pick and choose world. choose choose choose. but at bedtime? ...why settle for this? enter sleep number...don't miss the memorial day special edition mattress with sleepiq technology. sleepiq tells you how well you slept and what adjustments you can make. you like the bed soft. he's more hardcore. so your sleep goes from good to great to wow! only at a sleep number store. save $500 on the memorial day special edition mattress with sleepiq,

plus 36-month special financing. ends monday! know better sleep with sleep number. [ male announcer ] your love for trading never stops. so if you get a trade idea about, say organic food stocks schwab can help. with a trading specialist 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. ♪ ♪

some have called cannabis the fastest growing industry in the united states. >> our next guest is getting ready to capitalize on that growth starting a financial services firm just for marijuana. joining us now is david dennonburg the ceo of kind financial. how did you go from -- >> there was an opportunity to provide a much-needed service. the legal marijuana industry is the fastest growing industry in america. it's doing north of $3 billion a

year, providing hundreds of millions of dollars of taxes. it's made in the united states. yet the access to the typical lending institutions and banking institutions are few and far between. >> the question i have is if it's that fast growing, how can it grow that fast if it doesn't have access to the financing? >> that's a great question, bill. it's growing out of -- we have 24 states. >> that's a lot of cash. >> it's 100% cash. we have 24 states today. when i first started getting involved in the market in 2012 it was a billion dollar market. if three years it's tripled in value. it's only going up. things need to change, quite frankly. >> what are you doing? are you providing credit? >> i'm providing the first full service financial platform for the industry. what does that mean? i get that question asked of me all the time. we're going to provide equity to the industry. we're going to provide insurance through the businesses

liability insurance is a big topic today. we're going to provide a true and transparent payment system for the industry. traditional credit cards are not allowed to be used in this industry. what i'm focusing on right now is building the most superior team in financial services. my team now includes ex-irs enforcement agents we're going into banks and showing them the road map of how the cannabis industry and a bank can actually work together and accomplish the goal that's much needed in this industry. >> anybody? >> yes, david, mike santoli here. i'm just wondering, it seems like this is an interim phase perhaps when regulations might get loosened up and more traditional players could get in there on the financing side. is that the case? do you get the sense that the industry is itching for that? >> this is how i look at it today. we see start-chartered banks getting ready to enter the

market, credit unions getting ready to enter the market. as far as the big banks that we're all familiar with quite frankly, the term i like to use now is they're too big to comply. the compliance burden on the large banks will be a problem for the foreseeable future whether the federal regulators change the laws or do not change the laws. banks, big banks as we know it they use all automation for their compliance. whereas the smaller banks use people. this is something we are creating an access for the smaller banks to really get a great read on who they're doing business with being their clients, dispensaries and growers. >> evan? >> it's the kind of thing, my guess is tell me if i'm wrong, mr. dinenburg, this is the thing you hope to do for a few years and sell the company to a bigger bank. it's hard to imagine if the industry gets big enough where the money is -- the money amounts are big enough then big financial players will get

involved. right now they view it more as a hassle. >> and a risk. is that your long-term plan and have you actually launched the service yet? >> those are all great questions. this is how i look at it today. legal marijuana is one of the only industries i can quite frankly think of where the product is not only made in america, it's made in the actual states. it's creating jobs and tax revenue. at some point this will be taken seriously at the national level and the larger banks will have to look at it. but to answer mike's question directly, you know mike i don't have a long-term plan right now. this is a complicated field i'm getting involved with. how many times in your lifetime do you get to launch a company, provide a much-needed service, do good for the industry make an industry credible and obviously, yes, michael, the opportunity to make money. am i going to sell the company in five years? i don't know that answer. i hope i'm around in five years, quite frankly. but this is an opportunity

today, we can provide, which i personally believe my company is going to help provide the financial blueprint for the growers, for the consumers, for the dispensary owners the edible companies, to have a road map to a bank and in the big picture, i believe we're going to help legalization take place. >> all right. we wish you well david david dinenburg. it's interesting even in the air areas where it's legal, there's still a stigma. why can't you buy a credit card to i boo the stuff? >> the federal government is still withholding its right to come down and say you're a criminal organization for dealing with these guys. as long as that threat is out there, they're not going to go. >> state versus federal. >> it is. >> ohio can be the next state. it's on the ballot for recreational and medicinal. memorial day, much more than just a day off or the closing of the new york stock exchange. >> it's a time we honor the nation's military. the troops began arriving here in new york as part of the fleet

week celebration. >> love fleet week in new york. >> up next we talk to a tech ceo and the founder of an organization that helps veterans translate their strength and skill from the military into jobs and civilian success. back after a break. why do we do it? why do we spend every waking moment, thinking about people? why are we so committed to keeping you connected? why combine performance with a conscience? why innovate for a future without accidents? why do any of it? why do all of it? because if it matters to you it's everything to us. the xc60 crossover. from volvo. lease the well equiped volvo xc60 today. visit your local volvo showroom for details. when you're not confident your company's data is secure the possibility of a breach can quickly become the only thing you think about.

that's where at&t can help. we monitor network traffic worldwide, so we can see things others can't. mitigating risks across your business. leaving you free to focus on what matters most.

yes, it's a three-day weekend. let's not forget about why we're celebrating this three-day weekend. it's all about honoring those who have risked and lost their lives in service for our great country. one organization is teaming up with corporate america now to turn the strings of military service into tools for success in school and work and in life. >> we have tom murphy from edge for vets. and ben roland from every day health, a tech help companies that trades here on the new york stock exchange and has partnered up. 7 welcome to you both. tell us a little bit about what your organization does. >> edge for vets is a workshop series that gives what business leaders say they need most that is support to translate their military strengths which are enormous into tools for success

in the civilian workplace. the issue is i looked around and saw that there were job fairs but there wasn't prep in advance of the job fairs.fordham. we designed extra vet as a work workshop series to teach the vets how to prep. we put together a collaboration of corporate partners that come together and support the vets as we give them the instruction, the corporate partners provide the mentorship and what happens is that speeds the job readiness for the vets and then we connect them to the companies. >> they've got the skill, they just don't have the career tools to translate that into a job of some kind, right? >> precisely. some of them were in a desert not long ago. we do the prep in advance of the connection.

>> why did you get involved? >> we had employees that wanted to get involved and help. our partners could not just give financial support but their own time to help mentor some of the vets as they looked for career opportunities. it was a really nice way where lots of different people from the technology parts of our organization, the leadership parts of our organization could really help vets find great jobs and advance their own career ps. >> what do you find are some of the challenges tom, with matching vets up with companies like ben's? >> the major thing is the vets as they leave the service are leaving a culture where everything was around team everything necessarily so. but now they're in the civilian culture -- and i don't mean i in an self-absorbed way but "i" where they have to sell themselves as an individual. they have to go into an interview with the people. we give them the prep that teaches them thousand take these enormous values and skills

they've developed and put them into currency that they can then use to convince the interviewer they can help the company. >> what skills are you looking for? >> we're looking for great communicators, people who are good with technology, people who want to take chances. we were really excited to communicate that to some the vets and talk about how they can explain how they're capable of doing that. >> the unemployment rate is notoriously high with veterans. has there been improvement? >> there's been improvement but transition is never easy. they're going from one culture into another. transition isn't easy. they can do it but they do better if they get support so ne don't -- they don't have to do that translation piece on their own. that's what we're set up to do prep them, put together these

lab collaborations of companies that send mentors in. the vets get value and the company gets value because they have this incredible pool of talent that once they're made job ready, they become shining stars in their efforts. >> we applaud both of you. we wish you continued success. edge for vets, thanks for stopping by today. >> last year the indy 500 and events built around it generated more than $500 million just for the city of indianapolis. >> next year the venerable race turns 100. but for what's on tap this year both on and off the ol' brickyard, we'll talk to the man behind the checkered flags, mark miles, after this.

♪ ♪ [ male announcer ] tora bora fallujah argonne khe sanh midway dak to normandy medina ridge the chosin reservoir these are places history will never forget but more important are the faces we will always remember. ♪ ♪

sunday marks the 99th indianapolis 500 where drivers are looking to cement their place in history by kissing the bricks and chugging a bottle of milk after taking the checkered flag. that is indy talk. >> yes, it is.

but they also drive engines to the local economy to the tune of more than $500 million. joining us to talk about the race and its value to indy and to sports mark miles is the ceo of holliman and company, which owns the indianapolis motor speedway and indy 500 series. come on a guy named miles runs the indianapolis 500? come on. that's coincidence isn't it? come on. >> it was careful planning on my parents' part. >> $500 million. where does that money come from and where does it go then? >> well as you well know this is a very big crowd. race day in indianapolis is just phenomenal. we never released the exact numbers but there's a small city here when the checkered flag drops. and so a big piece of that is tourist money. people come from all over the world and all over the country to be here and they don't come in just for race day.

they come to stay for a long weekend, the memorial day holiday. so most of it is what we really count is outside money from the tourism that comes with the race. >> robert frank is a fan. >> yeah mark. good luck with the race this weekend. it's good to see you at the brickyard. a lot of controversy and attention this week over the crashes. you've had four crashes, three cars went airborne. a lot of people like mike andretti saying it's these new aero kidts which is designed to make it more attractive to fan. do you think it's the car? are we going to see these crashes over the weekend or have you solved some of thosish use?e ishsues? >> we don't exactly what the cause of three of the cashes were. we have the best people in the world. the engineers are poring over all the data to see if they can determine it. sooner or later we'll know exactly what the cause of those three unusual crashes were.

there haven't been an unusual number of crashes. indy cars is known for pushing the envelope. we're always out there and speed is really part of what we're known for. with that comes risks and we do everything we possibly can to mitigate those risks. the drivers are fully aware. they basically sign up for those risks and so i think we're ready. i think we've done what we can do. eventually we'll know what caused these three unusual wrecks where the cars got up in the air and upside down. but for now we're focused on sunday and ready to run the 99th indianapolis 500 mile race. >> got to go. mark miles, good luck this weekend. thanks for stopping by and thanks for your time. >> pleasure. thanks, bill. >> so you're the expert on this. who are you picking? is the andretti curse going to end this weekend? >> i don't know. the speed are going up. with these aero kits, they're

trying to figure it out. there a lot of good drivers. next to formula 1, i think it's the best in u.s. soil. >> you're going with american pharaoh? >> i'm kidding! >> have a great memorial day weekend. thanks for having me here on this friday. we've got "fast money" coming up in just a few seconds. >> melissa lee, what do you have on top? >> we have a big show. have you noticed the markets haven't done much lately? it means something. we'll tell what you it is. >> "fast money" starts right now. i'm melissa lee. tonight on "fast" the dow is doing something it has not done in a hundred years. we'll tell what you that is and what it means for stocks. plus a major twitter shareholder says he has got some suggestions on how to fix twitter. we have our own suggestions and, warning, it