aspect. because it's great that i have all these fantastic ideas but to really be able to implement them, that requires leveraging these business knowledge and to be able to effectively communicate my ideas and to be able to get them implemented in the real world. >> all right. by the way, we're watching bristol-myers, down 7%. more on that on "fast" tonight. >> "closing bell" right now. hi everybody. welcome to the "closing bell." i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. we have a lot of moving parts and pieces today. >> do we ever. >> we'll try to get to all of it. it is the last trading day of mott. this last hour could be especially dramatic. the russell rebalancing. we'll be making its annual adjustments here and there and we'll be bringing you all the action right here on the floor. it's going to get crazy here in the next 45 minutes. >> should be fun. we'll show it to you. oil, meanwhile popping more than

4%. a drop in inventories this week. and also a drop in the number of drilling rigs hoping to push that commodity higher. it's another down day for the transports. the airlines are bouncing back and we've got the ceo of spirit airlines here to talk about fluctuating oil prices and capacity are impacting his company. >> he looks spirited doesn't he? >> ben baldanza. >> talk of yet another deal shares of health insurer humana have been on a tear in the last hour or so that the company has put itself up for sale. they've had interest expressed to them by some rivals. they've hired goldman sachs and the mating dance begins. the stock up 17%. more details on this story, coming up. it's still breaking right now, as a matter of fact. big implications across the medicare advantage space, of course for the obamacare exchanges as well. the dow is down to close out the

month, 113 points, just above 18,000 for the time being. the s&p 500 down about 12 for the broad index there. that nasdaq actually the outperformer on the session but still down 27 points. >> let's start with the oil spike ahead of next week's key opec meeting. it's all about supply and demand. jackie deangelis is at the nymex nymex. >> traders said we'd see volatility of $55 to $65. we certainly have. a big pop today, closing over 60 $60.30. the drilling rig count decline again, we lost 13 oil rigs. on top of that a perceived boost in demand for both oil and gasoline expected to continue throughout this summer. add that to the fact that people are watching political issues in the middle east isis claiming responsibility for an attack on a moss income saudi arabia is one of the issues. meantime we had a slightly weaker dollar today.

you have short covering going into the weekend on the last trading day of the month. it creates a perfect storm to go higher. a lot of traders saying we could bump up from here because closing over 60 was paramount. back to you. >> let's get to our "closing bell" exchange. with us today, meg green of meg green and associates back with us. david leibovitz with jpmorgan is here at the new york stock exchange and rick santelli is in chicago. david, this week, volatility came back. economic data mixed sat best. and the fed was out there telling us not to fear or obsess over that first rate increase whenever it happens. what did you think of what we learned this week and what does it say about the markets right now? >> you make a very good point. volatile has been high. it's been our base case all year that as we approach the initial fed liftoff we'll see volatility pick up in stock and bond markets. turning to the data, yes, the first quarter gdp print or the revision wasn't terrible but it was what people expected. we were negative growth territory, the fed seems to be

looking through it investors seem to be looking through it. i'm much more focused on the second quarter numbers we've been getting. broadly we're seeing stabilization in the economy. >> what are you buying here meg? >> you know we're always in. we're never out. we don't try to play guessing games. but the truth of the matter is i think a lot of people need to understand that the s&p is not your big winner this year. they're all looking, every time the market hits a new high which they are on a regular basis it doesn't take but one point to get to a high. everybody celebrates. everybody's excited until they go home and look at their portfolios, look at their statements. it's not like that. the reality check is a 60/40 portfolio will be doing a little better than the s&p this year. the truth of the matter is when you look at the highest interest rates and what they will do now you have to look at where do you go? do you jump out of the market or jump away from bonds? no. it's a good play to make if you want to get into the things that

do well after a market rate increase. that's what we're looking for. >> stay diversified in that regard. rick what did you make of this week and the increase in volatility and the movements not only for fixed income but for the dollar as well? >> well you know i think it's easy to tie up when i think about a story that everybody e-mailed me about 2 1/2 hours ago that new york stock exchange margin at high levels and i understand that when stocks go up the margin tends to correlate with it. i get that. i think fully leveraged, fully margined, it explains the volatility. you get a lot of margin calls. and whether it happens domestically or on the other side of the globe, it hits all markets. i think we'll see a lot more of that. in terms of volatility down the road and what the fed may or may not do i think it's going to be a game of frogger. we'll see a lot of movement and people jumping in jumping out. because the next correction we get most likely will see both higher rates on some type of

adjustment getting used to normalization. stocks won't necessarily like that. that's a liquidation trade. it isn't necessarily transferring your money from one sector to another, it's capital preservation. that always plays out in the market much different. >> but it's short lived. >> meg, pick it up if you would. people who are in fixed income are wondering if they should jump out of the fed. only does raise rates once or two. what are they to do? >> you know what i don't think everybody should be running from bonds. not every bond is the same. you might not want to be in treasuries but high yields are up, doing well. we went back and did a lot of study on what happens after since '83 there have been five rate hikes. so what has done well after those rate hikes? muni bonds. they might not have performed well this year they're only up 3.3%, 3.4%. the other thing is yes, there will be much more volatility

when there's a rate hike. that comes with the territory. volatility is an investors' really good friend. you do not get out of the market. you stay in because the market is higher after rates go higher. >> point well taken. before we go what's your best investment idea right now, quickly? >> we still like u.s. equities. there may be more growth potential abroad in europe given the stimulus and increase in confidence there. think there's no need to run for the exit of the u.s. equity market. we'll see more volatility but historically stocks have continued their upward ascent. >> thank you all. we'll send it out to dominic chu for a quick market flash on bristol-myers. what's happening? >> the drug giant is down by 8% reracing 7 billion, $8 billion off of its market cap, toward it's lowest levels of the session. this coming out of the asco conference. they have presented some of their results for an experimental cancer-fighting drug and those results have

somewhat disappointed investors. this does open up also, some say, for possible gains from their competition from the likes of perhaps a merck or roche in switzerland to gain ground on particular drugs being put out by bristol-myers squibb. the bottom line the results for positive for this cancer-fighting drug but not as positive as some investors would have hoped for. it does perhaps, leave the door open for competition of the likes of other drug companies. so, again, that's the reason why. those stocks shares are down by about 8% right now towards their worst levels today. we'll keep an eye on bristol-myers as we head towards the closing bell. >> meg tirrell will be at that asco conference on monday. apparently a lot of fireworks to come out of that as well. >> these conferences move the shares around. glad she'll be down there covering it for us. >> now to the humana story.

shares surging 17% last i checked on talk that it is reportedly exploring a sale after being approached by some of its rivals. >> "mad money's" jim cramer was talking about this exact scenario last week. >> we also have an important analyst meeting wednesday humana one of the health care cost containment leaders lays out a strategy. i've been pounding the table for you to own something in the health care segment. humana is often thought to be a target. >> let's get more now on the possible deal from tom carroll. humana, a huge move. do you expect this to be the first in a wave of consolidation across the space? >> absolutely. this is right exactly in line with our view of managed care this year. humana i thought was going to be the first to go or a first mover in what we think is a new move of consolidation across the managed care space. >> why? why now? why humana, why this sector?

>> so humana is a big player in government services. really there's two places going forward where growth is quite significant across health care. that's the medicare eligible population and medicaid as well. so government growth is a key area, a key growth driver for this space going forward. and humana is the big ticket player here at least on the medicare side of things. and a number of the other potential buyers here the larger companies, the likes of cigna, anthem aetna, really need to add a bit more of that capability, if you will to really overweight this opportunity which is really going to last for the next decade. >> tom i understand the demographics here but i also know medicare payments from cmms have been under pressure for years. can you explain the extent to which this has been seen as a luck ra lucrative place. how much revenue growth are we

expecting over time? >> yes, you're absolutely right. the medicare advantage program has been under pressure from a reimbursement standpoint really for the last five years as it relates to the affordable care act. going forward, we're really at the end of that cycle. it's our view that nitpicking around the rules, reimbursement hits are going to become a lot less and the regulatory environment is a lot clearer over, say, the next five years than it has been over the prior five years. in 2016 we're expecting to see the first positive rate increase for medicare advantage for the players like humana that we've seen in five years. >> right. >> and that on top of the strong demographic argument that you mentioned, i think is quite strong. >> who is the best fit for them? there's talk it's aetna, anthem and how much do you think humana is worth right now? >> yes, our view this year was that anthem and aetna are both in a position where they must own humana really to maintain

relevance longer term. i think, again, my view is anthem was the likely winner in that battle although headlines today are suggesting maybe cigna gets in the game. cigna also plausible. i think they have the best debt capacity opportunity to do something like a humana. i'm not counting them out either. any one of those names could be in the mix. our bet was anthem. >> how much? >> so in terms of looking at valuation, that is a hotly debated topic here this year. in terms of price tag, if we look over the last decade or so, the managed care space has seen m & a at a 20% to 25% premium to the prior day close. let's take today's movement out of it put 25% on top of where the stock has been trading. we're looking at at least probably a $230 price -- deal price for humana if not more.

that's kind of the neighborhood we're thinking about. >> depends on if there's a bidding war of some kind. >> sure. that's comfortably above your own target we know. thanks for joining us this afternoon. appreciate it. >> absolutely. >> that's thomas carroll from steeple nicholas. the nasdaq it's slightly down. >> transports are down but the airline stocks are higher today. it's been a tough year so far for spirit airlines down 17% year to date. it is higher today, though we talk about the challenges facing air carriers in general. talk with spirit ceo about their particular case. we'll find out how he's dealing with the wild swings in oil prices coming up. >> then later, a wall street pro names three must-have stocks for the next ten years. some of the names on this list may surprise you. we'll have more on that, "closing bell" is back in two.

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>> peter costa right behind the graphic there trying to ward off the -- >> we have the monthly charts. we've combined the dow, the s&p and the nasdaq composite. they didn't exactly sell in may and go away again, like last year. >> as we are hearing from tom mcclelland earlier, the sell in may crowd is out there. interesting gold prices have been at quite a -- >> bertha coombs tracking some of the other movers at the nasdaq in the final hour of trade for the month of may. bertha? >> bill and kelly, look at how the nasdaq composite outperformed this past month and today's movers really exemplify that. altera at a new high on reports that intel could be getting very close to reaching a deal to acquire the chipmaker for upwards of $16 billion.

and the chip sector overall with that mega deal we saw yesterday, avago at $37 billion continues to be buoyant. chips were very strong performer. avago at a high as well. skyworks, some of the others that are componentmakers for apple. chips for the month are up 9%. then you have biotechs. they've also been a big gainer as well. up 9% as a group for the month. consolidation, a big issue there. going into this weekend, it's asco they get that asco bump here at the end of may, beginning of june as folks anticipate some really interesting data on cancer coming out of that conference over the weekend. finally, gamestop one of the big winners, new games mean better sales, better profits. and that was the case for gamestop in the first quarter, thanks to mortal combat 10. can you believe that's been

around that long in they're up to the tenth version. back to you. >> you're still playing seven. >> yes, yes, i'm working on my skills. >> you're getting there. >> thank you, bertha. 20 minutes left in the trading session here. the dow is down 09 points s&p down 10 nasdaq down 24. again, we're waiting for the rebalancing in the russell index during the last half hour. all bets are off the table at that point to see what happens. >> also ahead, billionaire and former head of the fidelity magellan fund jeff vinik will tell us if it's been exaggerated. and tampa bay lightning going up against the new york rangers tonight. looking forward to this discussion. it's coming up on the "closing bell." can you spot the difference? no? you can't see that? alright, let's take a look. the one on the right just used 1% less fuel than the one on the left. now, to an airline a 1% difference could save enough fuel to power hundreds of flights around the world. hey, look at that. pyramids.

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welcome back. we've got 38 minutes left in the trading session here with the dow down 91 points. the s&p is down 10. the nasdaq down 24 as we close out the month of may. actually with the major averages with positive numbers. the transports though are a different story. the dow transportation average suffering this year as oil has come back again. this is a year-to-date chart. you see, down more than 9%. >> nearly correction territory. while the transports are down again today, those pesky airlines are higher brushing off the rally in crude oil prices as well. >> joining us on the phone right now in a cnbc exclusive to talk

about the oil impact on the industry and other things that are facing him, ceo of spirit airlines, ben baldanza. >> sorry i can't be live with you in studio. thank you very much. >> we heard you caught in traffic. how much of this is about the cost of fuel and what else is going on as we head into the summer season here? >> i can't speak for the whole sector but i would say for spirit, we don't have a lot of headwinds right now. fuel prices are kicking up a little bit but they're still moderate compared to what they've been the last couple of years. and there's enormous demand for summer travel. our bookings are very strong. we came off a very strong first quarter and put out good guidance for the second quarter. overall we feel good about the summer. i will say overall fuel prices rising again if they are to is it really the worst thing for the industry overall? because this industry has

weathered much much higher fuel prices over the last two years and has generally been profitable. >> it's a point, ben. the last couple of weeks there's been a lot of focus on what southwest is doing with adding capacity. we've heard from american ceo saying whatever they do in terms of capacity or price, we will do too. what does spirit have planned in terms of adding seats, adding coverage, expanding to meet demand this year? >> well we're having a very big growth year this year. all of that growth was planned before the drop in oil. so we're not growing any more in response to lower fuel prices. we see what southwest is doing. they're growing a little bit more aggressively. and the industry generally has taken advantage of lower fuel price by filling a few more seats or adding a little more capacity. we saw americans' comments as well. they seem solidly sort of aimed at southwest. the reality is if there's a little more of a price war in the industry right now, that's not bad for consumers. and no airline is better at low

fares than spirit. we're all for it. >> do you hear the groan from passengers when we talk about you adding seats to planes that are already full? i don't mean by the number of passengers, i just mean it's pack. there's less leg room and so forth. flying is just not as much fun because of that issue of crowding and having to pay for the baggage fees and all those things. what do you say to the passengers about all that? >> well there's customers who buy based on sort of physical comfort and there's passengers who buy in order just to get where they want to go. at spirit we put a lot of seats on our airplanes and we like to put even more and what that does, it spreads a high fixed cost over more people so everybody pays a lower rate. our customers really like that tradeoff. they choose the lower fare over a couple more inches of leg room. and what department of transportation data prove is that the total price customers pay on spirit after they pay for the extra bag and things like

that is about 25% less than their next best option. our customers love that tradeoff. they save money, yes, the seat is a little tight but it's still cheaper. when they get there, they stay in a nicer hotel or have a better meal. >> just to be clear on this one, as others move to lower prices like southwest, like you've mentioned, will you guys match that? it's important to us we're the low-cost airline. how do you maintain that if it is your number one priority if you feel pressure coming from rivals? >> well, the total price that spirit collects today is lower than everybody else's cost of production. so when the industry matches our fare if they sell their whole plane at that price they lose money. again, people are cutting their fares to come down and match spirit. we're not generally forced to lower our fare to match others. now, sometimes we have to lower our fare in order to keep our plane full if another airline lowers their fares. we're affected by this kind

pricing when other airlines price low. overall, like i said nobody makes more money with low fares than spirit. we do fine in this environment. we're bullish about the summer. >> ben thank you. pressure calling in. hope it wasn't because of a delayed flight or anything. >> no it wasn't because of a delayed flight. thank you very very much. >> ben baldanza of spirit air joining us. >> interesting stuff impacting that industry. time now for a "cnbc news update." >> here's what's happening at this hour. for the first time a major study shows that a drug targeting the body's fighting up inging immune system -- it works better than chemotherapy for patients with a certain form of lung cancer. and heavy thunderstorms dropping several inches of rain in the dallas-ft. worth area triggering a flash flood emergency and leading to dozens of high water rescues this morning. dozens of vehicle were trapped

on the roads and interstates. a chinese bank announcing it's begun atms with a facial recognition system for customers. if there's no match, no money can be withdrawn. a. and michael jackson's neverland ranch is on sale for $100 million. a buyer gets 22 buildings, including a 6 bedroom, 12,000 square foot home. there's a swimming pool basketball court, tennis court and a 50-seat movie theater. that's the cnbc news update for this hour. back over to you. >> i guess the zoo is gone now. >> i know. what's that about? >> thanks kate. 30 minutes to go until the close. the dow is down just about 80 points, the s&p down about 9 and the nasdaq off 21. >> a little less than half an hour left in the most important 30 minutes of the day as we've established on wall street. a top floor trader will tell us what he's focusing on and what to expect from the rebalancing coming up in a few minutes.

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back on the floor we have --

where did the time code go. >> 28 minutes. >> gordon charlotte from rosenblatt securities, one of the top traders on the floor. we have the russell rebalancing coming up. what's that going to do? >> it's a morgan stanley index that will be rebalanced. >> half the volume of the russell historically that's what it will be in terms of the closing bell. that means somewhere between 400 million and 500 million shares. >> on volatility? >> that's what we're looking at right now. the conditions indicate -- i think we'll start to say a payoff. there are procedures. >> what about anticipating that? >> what have you thought of the trading and what it's done this month and especially the last week where the volatility picked up again, finally.

>> it's been an interesting month. they seem to be fighting to get out of a range. until we seem to be able to get clarity on which way it's going to be are they going to bust it out finally or are the naysayers going to have their day because of greece. >> is it going to tell you which way it's going to break? >> i've been afraid to say this publicly. >> just between us. >> just between us i think we go to the upside. i think you see in the deal. we see a lot of the other names. there's big money out there. i think they're going to put it to work. >> thank you. kelly? >> bill thank you. the last few minutes of trade, we've been asking you on twitter how you're playing the mark net the final trading session of the month. here's some of what you had to say. jeffrey said i stopped buying the individual stocks it's just the dow and nasdaq. invested in good companies at sensible prices.

we have the retail investor round table. julie warner is here from better investing. for the first time justin eskar jones us here at post nine. great to have you with us. >> thanks for having me. >> thomas let's kick it off with you. what are you buying? >> i made a couple of small purchases. i recently bought pepsi. i thought the dupont reaction to the board vote was ridiculous, overblown. i got in there. the market hasn't done much. i don't think the market is too expensive. i don't think it's really cheap. so it's sort of picking and choosing at this point. >> all three of you told us what you're buying, what you're holding. all three of you own the same stock. >> apple. >> you own apple. you own apple. you own apple. you own an apple watch. >> yes. >> why do you own apple right now? >> it's been hot. >> you think more to come? >> absolutely. they have amazing products coming out. the worldwide developer conference is in two weeks.

we don't know what will come out but we have good ideas. they're just on a hot streak. i feel like they're not going anywhere. >> this is part of your market research. why do you think apple is a good investment? >> sure. they've had stability with all of their products. until we see something that throws for a left, there's no reason to get hid of them. it was get they did the 7/1 split. that helped investors buy more in. and they just keep chugging away with new and great products. the watch sold a million units day one. >> how do you find yours? >> i love it. i love it. it's awkward when you're in a public place talking into your watch. >> for now any way. >> you have tiffany, gemtex genesee, polaris. >> genesee wyoming isn't a mining company. it's a shortline railroad.

>> okay. >> i purchased that back in december for the first time. it's a long-term play. i tend to invest for the long term. and i believe if there's growth there, it will ebb and flow like the market does. favorite company is tiffany and i've owned it since actually the first time i bought it was during the financial crisis. i like to buy good solid, great companies. i like to get them at great prices. >> you've had a nice week last week. >> i've had a great week. >> what's interesting about the three of you, you're talking about individual names, contrary to the twitter and general public reaction the focus is mostly on index funds. why is individual stock picking the way to go? >> i think for the individual investor, once you take the time to learn how to do it and as you know, my organization thinks that investment clubs are a great way for the average person to learn. that's how i learned back in 1984 when i joined my first club. but it gives you control and you get -- an educated investor will

learn how to value a company, pick good solid growth companies, how to get a diversified portfolio. you are the owner of these companies. you take control. you don't have to take profits like the mutual funds if you invest that way. and i've been very successful. i know a lot of people have been successful doing it. the secret is education. you have to get the education and learn to take the emotion out of the decisionmaking. >> good point. >> good for you and good luck with that as a matter of fact. tough to do. >> jpmorgan is that the only financial you like here? a lot of guys are telling us to like financials here. >> i love the ge spinoff. i think it's underplayed, it's not really talked about. i think they'll institute a dividend at some point. >> you sold citigroup to buy that one. >> too many negative stories. i thought it was near the top end of the range. you didn't get shares even if you owned ge. you had to go out and buy them. i started out at 23 24.

it's going to make $3 a share, i this i, next year and a dollar dividend i think is certainly possible with a 12.5 ratio, 37 1/2. that's one of my favorites. >> again, i'm curious about the backdrop. are you mostly in just stocks or do you have fixed income investments as well? >> we have a couple fixed income investments. obviously i own my house which is a great thing and building up equity. at my age, really it's about a quality group of products to keep myself going. i'm a young guy, at least i think so. i want to be able to go for the long haul. it's not about the day to day. >> i think everybody at this table is safe in buying green bananas. we're okay with that. anybody care when the fed raises rates? >> i want them to raise rates the market will overreact and sell off for no reason. >> julie can buy some more right? >> i absolutely want them to raise. 0% this long is dangerous. i think they should raise. >> you agree? >> i do agree but do what they

want. all i know is for a long-term investor, the market ebbs and flows. when it gives buying opportunities, i'm more than happy to take those. when it overshoots, i'm happy to take a little bit of problem, especially from my tiffany and go shopping in a different place. >> we love having people like you come on the show to tell us what you're doing with your portfolios right now. appreciate it very much. >> 20 minutes to go in the session. across the board indexes are under prsh yur to close out the month. the dow is down 90 points or 0.5%. >> we're not finished with stock picking. when we come back three stocks you need to own for the next ten years. julie is listening now. a wall street pro has the names he says you cannot afford to miss. coming up. >> later, the next big short. paul singer's latest market call. that's coming up.

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welcome back. two big health care companies being talked about today. humana up almost 19% and bristol-myers much lower, giving up 6.5% after disappointing drug trial data.

>> ahead of that big asco conference that we'll be covering. we are looking far ahead. let's say the next ten years. joining us right now to break down his three top stocks to own for the next decade john good to see you. welcome back. >> thanks for having us. >> is there a common theme before we get to the names? what is it? >> the list was first picked in 2010. and obviously it's had a great run since then. but the thing is you want to look at not just the trends of today but the idea is what's going to stay static over the next decade. so the three that you all wanted to go over these are all static for the next decade. teva has had a lot of problems but the reality is they still have a lot of tail wind behind them, too, if they can get past the hurdles.

>> it's cisco systems, teva pharmaceuticals as well. >> yes. >> why is teva the place to be for the next decade? >> well so when it was picked originally, it was mainly because of the largest exposure to generics. and of course there's biosimilars, you'll hear a lot more about over the next five years. it's still not even really all that -- it's really not all that present right now. but all of this should help them. i could even foresee, perhaps, a breakup. i know that teva -- i know teva was interested in mylan. i have no idea how that will pan out. if that doesn't work out, they'll make another acquisition. they almost sort of have to. >> on disney bob iger has had an amazing run as ceo.

he won't be there forever. he's already identifying who his next successor could be. can they keep this juice going for another ten years? >> well i'll put it this way, he laid about as good of a foundation that a ceo could lay for a successor. the valuation is high. that is going to be an issue. they trade at 20 times blended earnings for the next year. so it's not cheap. they don't have a really good dividend. they keep raising their dividend but their stock keeps going up. who's not going to watch "star wars" and marvel in five ten years, we'll still be watching marvel and "star wars" movies. >> that i follow jon. explain cisco especially since we entered the post-chambers era. >> so cisco is easy. in technology the whole trick? looking at a decade is not to pick the biggest winner out there.

it's to pick a company that will be paying you as you own it. cisco loves to do buybacks. outside of apple they are the number one buyback in tech. as far as over the last decade. their dividend yield is almost 3% now. you're going to get a 30% pop just from holding it over the next decade. the reality is they're probably going to grow plus or minus a little bit more than the global gdp. so as long as valuations hold up and by the way on valuations, they are a cheap stock also. so it's not like it's kind of trying to pick the next apple here. >> great stuff, jon. thanks. appreciate it. >> i appreciate it. >> jon ogg. >> 24/7 wall street. >> 14 minutes left in the trading session here. coming back a little bit, the dow down 76 points right now. >> find out if stocks can turn the red arrows into green ones in the final minutes of trade.

and later, we speak to the ceo promising to pay the college tuition of his employers' children. the founder and ceo of boxed, coming up. the 2015 c-class. at the very touchpoint of performance and innovation.

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about ten minutes left here. art cashin said we have a $350 million to sell going into the close here. but it's anybody's guess what's going to happen with this index rebalancing that's occurring on the close here. >> could be swings. let's talk about them with independent investment consultant david darst. discussion we've been having on the one hand was about all the trading activity we've been having. i'm looking at long-term goods, i don't care about the near-term wiggles. >> this is a sleeping beauty market. the sleeping beauty stayed asleep for 100 years until she was kissed by the prince. the prince's name is arp, a. howry earnings retail sales and profits. i'm amazed the market is holding as well as it is kelly and bill. we have 12 factors.

>> we don't have time for 12. you better hourly. >> retail sales, average hourly earnings. the employment is not really going down. the manufacturing sector, construction, spending low. down. durable goods orders industrial production, chicago philly fed, empire state and the last three is lack of vigor as evidenced by this 0.7% decline annualized in the gdp and the lack of pricing power, number 11 and 12 the ppi, purchasing power and the producer price index and the consumer price index. >> if you think we're stuck in a period of clowe growth what do you buy here? >> i've been amazed i just whispered it to you last week bill, the bank stocks have acted so well and they may be indicating that this housing sector, pending sales, new home

sales, existing home sales, housing starts. the nahb that's the home builders index. >> right. >> that has really shown some resilience and actually is pretty solid. okay? if you get a good jobs number next friday kelly, for the may jobs number i think that could basically simulate. we don't have animal spirit. this irrational not exuberance. this is irrational sunderland. >> are we destined to remain in this traying pattern until the fed decides to raise rates? is that the catalyst that's going to get us out of here? >> that is could be a sediment for greece -- settlement for greece. that's been weighing on things. first quarter gdp minus 0.7%. the second quarter number that the atlanta fed is talking about is 0.8%. >> which would keep the fed on

hold presumably. >> correct. >> are we destined to stay in this trading range, do you think? >> we'll stay in this trading range until we get a strengthening in the labor market. 80% of americans who do the real work in this economy. they have to basically be in a more animalistic spending mood. it's been -- all the games have flowed to the people who own assets. and their big asset, the 80% is their house. that and a little bit of tightness in the labor market. that's the underlying principle of the market doing better this year, the economy to do better by housing doing better and labor doing better. those are the two things that have to happen bill. >> think you put it well. >> thanks david. >> bank stocks. keep your eye on the bank stock. >> we will. we will heed your advice. >> david darst with us this afternoon. up next, right back to the closing countdown. >> we'll review get monthly charts of different investments and see how we did this month of

may as we close the books. >> greece why is matters a lot to wall street. we'll check in with michelle caruso-cabrera. you'll watching cnbc, first in business worldwide. 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

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here's to breaking more glass ceilings in golf and everywhere else. kpmg. continuing our commitment to the next generation of women leaders. 3 1/2 minutes left in the trading session for the last trading day of may. mary thompson let's see -- let's go over these charts and see how various investments did in this month. >> okay.

>> the old adage, sell a man, go away. >> look at the dow. >> it's turning lower right now. this is the month. we'll look at month-long charts. today down 0.5%. for the month, virtually unchanged, down 0.2%. transports the dow transportation average for the month is down 4.5%. price of oil? >> price of oil, concerns about capacity in the airlines and some concerns about what's happening with the railroads, too. transporting fuel coal and oil as well. >> the month of may, we began the year with very low prices. they've since been coming back. for the month, mary up 7%. so as the transports went lower, oil is going higher. that's a slam dunk. the dollar also probably up. the dollar they've been talking about parody with the euro. but the dollar stalled out a little bit here as we wait for

situation on greece the dollar index for the month up 1.7%. >> right. what we've been seeing lately is the strength there. >> yield in the treasury the ten-year, let's see how it did. for the month of may, representing percentages on a percent anyway the yield up 4.3% in the month of may there as they get ready for the feds to raise rates. >> the question is when is it september or december given the weaker data that we're seeing? do they push it out longer. >> more people are talking about financial stocks as a result of all that. finally, what did rear up at the end of the month, we've been in the back water area for so long on volatility, the vix and then finally, it started to come up and for the month, up 3.8, almost 3.9% after this 4.5% gain today. now we have the rebalancing. we clean the slate and get ready for the month of june.

what's expected for the summer months here. >> people try to regain the rebalancing as well. when the stocks close out, that's what they use to decide the market cap the trading volumes. how to change the indices in june. it's been a choppy day but a lot of the concerns that we had in the past are to the forefront again. we have concerns about greece once again. that was a contributor to some of the volatility concerns about the economy as well. some of the data hasn't been as strong as expected. >> the fed meeting is in just a couple of weeks. with the weaker data though will they be raising rates for the first time in the june meeting? the expectation right now is not. they're making an awful lot of speeches lately saying do not fear the first rate increase. >> or the pace of which they'll

raise interest rates. obviously there is a desire to raise rates whether it happens in june or more likely september. >> thanks. have a good weekend. down 100 points. we did get a little bit of selling as we close out with the rebalancing of major indices as well. stay tuned. much more ahead on the second hour of the "closing bell" with kelly evans. have a good one. thank you, bill. welcome to the "closing bell," everybody. i'm kelly evans. here's how we're finishing the day on wall street also the week and the trading month. the dow jones industrial average really doing down on the close there. we had a rebalancing, we have the concentration in the final trades as well. just below 18,000 the closing level there. the s&p down 13 daz knack down

28. moving substantially higher in fact, as jackie toll us earlier, we're looking at a close for the session that was above 06 bucks. more bullish talk among the hopefuls that will potentially see more breakouts to the up side. that remains to be seen. a 4.5% move today. this was the final trading day of the month. that strategy doesn't seem to apply for the month anyway. dom chu. >> it's an interesting move overall. may ended up being not quite as bad as some people thought it was going to be. as we take a look at the major indices, the dow closed up. the s&p in that same ballpark about 22 points overall for the month. you can see here the nasdaq composite, a lot of that deal driven, hot specters in technology biotechnology, semiconductors nasdaq composite up by 2.5%. as we drill down where the action was overall beyond these

major indices, take a look at some of the sector performers some of the stock performers overall. for right now you're seeing the energy sector down by about 5%. that's the month to date loser in terms of the overall factor that's done the poorest, if you will. energy continues to be a volatile sector. something to watch. as for the best performing sector overall, maybe no surprise here. it's been hot last year. it's been hot this year so far. health care up about 4.5%. that trend continues. that bristol-myers deal -- bristol-myers action today, maybe notwithstanding. take a look at what's happening with humana and some of the other names as well. that's an interesting trade to watch. take a look at the overall biggest winners so far. because of that move today with possibly a deal for humana putting itself up for sale it's up about 29% for the month. a huge move for this health insurer. as for the worst performing stock in the s&p 500 overall, that's interesting as well.

that's keurig green mountain. that's how things stack up and wrap up. generally speaking with a few nickels and dimes here or there, that's what's going to happen and that's how we'll wrap up the overall month. back over to you. >> great stuff, dominic chu. let's bring in the panel. jim la camp is here from ubs, kate kelly and robert frank. welcome, everybody. we have "fast money" trader tim seymour and cnbc senior contributor larry kudlow. welcome one and all. let me just begin, i'm look fog the panel, guys if there's a bull market it is in deals. we've had the second busiest month for u.s. deals in terms of announced deals in history, $233 billion worth. where does this take us next? is this a bullish time for the markets generally? >> there's a lot going on to be happy about. it seems like we're up and we're

down. underneath the surface, all three major averages are up. you look and see what's up in the market. health care, financial technology. what do these have in common? earnings growth. go out and find companies that are doing well. it's not just mergers and acquisitions. find companies that are out there performing. >> that's the point. >> this is a stock picker's market, not an averages market. >> kate? >> as we wait for interest rates to rise which could be september at the earliest at this point. financing is still cheap. people are looking for ways to combine and increase efficiencies. i heard dick bowles talking about the way that companies are cutting costs to preserving margins that way merging and gaining new business lines, assets, while cutting staff and overhead is one other way to do that if you can get the financing and you have cash. a lot of people do have cash on the balance sheet. >> to me this m & a activity is worried. first of all, the best performing may prior to this were 2007 and 2000.

as a former m & a reporter, people do deals not when the targets are cheap but when their own stock is overvalued. when their own currency they feel like it's not going to get much better than this, that's a time to do a deal. first they tried efficiencies. that's how we got out of the market bottom. then we did stock buy backs. this is the third phase, m & a. it may be the last phase. >> you may have an issue where everybody thinks interest rates will go up. you have financing costs that you're looking in the wind shield and saying they're going to go up. if i'm going to do a deal i'll do a deal right now. >> that's doing deals based on the supply of money, not based on what an asset is worth. that's a problem whether you're looking at real estate art, everything. that's where the problem is. >> what's your read on all this? >> you know in terms of the numbers today, i didn't see anything that really changed. okay? >> i would disregard this first

quarter number. you basically have the same story we had for years. i call it the 1950s. 2.5% growth virtually no inflation, rock bottom interest rate. if you want a positive number to support jim lecamp nonfinancial domestic profits are running 7.5% over a year ago. that's through the first quarter. that's a pretty good number. if we keep that pace going, which i think we well could, i will continue to advice buy the dip. >> we have that plus tim, we have the stronger u.s. dollar. is that helping to attract money here and out of other mark pets or no? >> let's pat jim on the back one more time. companies that are doing better in this environment are those that are not exposed to the stronger u.s. dollar. health care is one of those places. look at the global economy, we've had a mixed bag this week. certainly greece first of all, don't discount the role greece

played all week in the heaviness in stocks and into month end. we've gotten some sense that imf payments will be delay or a deal is delayed until the end of june. i continue to think it's a lot of noise. as it plays into the global growth story it's been weighing on europe. i think european assets this week also got cheaper. if you look at the dax, we traded down to the 100-moving day average. it's rallied a couple times in the last run. i tend to agree with the panel which is that i think the u.s. economy is in pretty good shape. for all the negative things, durables numbers were a surprise, new home sales were a surprise. all that was kind of good. >> we'll leave it on meantime. the disappointing economic data in the u.s. helping to spark that sell-off. it may be a familiar one. michelle caruso-cabrera joins us now. which greek deadline is it this time? >> tim seymour was talking about it. we've had weaks of hammering, speculation. things cowl get real for greece and its kreders they have to

repay roughly 300 million euros to the imf on friday. it's the first of four payments due in june. it's unclear whether they have the ability or willingness to play. there have been confusing headlines. let's get down to the worst case scenario. what are the consequences if they don't pay the imf on friday? looks like not much. first technically they have until the end of the month to make all of the june payments. second, not paying the imf on time doesn't trigger default clause in another bornds out there. what is far more consequential is the nearly 7 billion euros greece owes the ecb due in july and august. make no mistake, things are getting worse by the day in greece. that's right. take a look at your screen. pensioners line up every month at the banks to withdraw their monthly payments from the government. they want to make sure they got the money and they want to make sure it doesn't stay in the bank because they're worried. not paying the imf next week may

not turn out to be such a huge market event even though it would be clearly symbolic of how desperate the situation is if greece indeed doesn't pay. >> looking for your reaction here. people are trying to figure out whether, you know, it's not just whether or not greece leaves the euro as michelle indicated. it's much more nuance now. walk us through the way we need to think about this from an investment point of view for these markets. >> it's kind of like what the fed is doing right now. they're hammering us into believing they're going to raise interest rates. in greece what i'm worried about is capital control. if they put capital controls in greece, what are people in portugal going to think, what are people in spain going to think and what are people in italy going to think? can could wreak havoc. you could even see bitcoin go up.

>> can i say something about the gross story. >> -- this greece story. >> go ahead, larry. the european central bank is going to bail out greece whatever that means. germany wants them bailed out because they don't want to leave the euro. that's the german position. i said this i don't know for two years. what really is more interesting to me is what happens here at home. i'm just going to say this to pound the point home. profits are the mother's milk of stocks. nothing has changed regarding the economy. it's stag nan the and has no inflation. >> we know financial contagion is real. we almost got to go. listen, in this case are you saying you're not worried there could be any kind of financial market contagion from what happens? greece?

>> that is correct. >> as they struggle -- >> for the record i agree with larry. >> because of the ecb, i believe it is not a systemic risk. that's all. >> michelle? >> if it weren't for the ecb, greece would have been gone a long time ago. >> larry's right. >> tim? >> i hate to say what larry said. capital controls i would put a 0% chance on capital controls at this point. the contagion effect is something the markets will try to do something with. that's where volatility comes in. don't overtrade that volatility in my view. i think the world is in a better place. >> we'll leave it there. thanks, michelle larry, appreciate it. stick around to see tim seymour on "fast money" at 5:00 p.m. paul singer revealing what he says is the next big thing. and the he's gone to running

for the stanley cup. jeff vinik joins us later on the "closing bell." you're watching cnbc, first in business worldwide.

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welcome back. bond prices have fallen a bit lately. they're still up sharply from last year. now billionaire investor paul singer says bonds are the next big short. kate kelly has the details. >> kelly, paul singer and his colleagues at elliott management have been fierce critics of the fed's easy money policy for years. in a letter issued at the end of april and reported yesterday by my colleague on cnbc.com elliott recommends betting against bonds tied to at least three developed country governments, the u.s. the uk and japan as part of what it calls the so-called bigger short. that's a play on words with the big short, the infamous 2007 and 2008 trades made by many and captured in a michael lewis book by the same name. the bonds elliott recommends

shorting quote, present -- they change their minds to find the exit door blocked with everything else doing an about-face at the same time it's going to be one heck of a day. they go on to talk about the herd mentality that governs the markets right now. singer and his colleagues aren't the first to short such bonds. bill gross recommended a trade to short the german bund to recognize it was a poorly executed trade. >> that was a tough week for him to be sure kate thank you. i want to bring rick santelli back into this conversation. thanks for staying after hours. this is your bailey wick. we heard from singer himself that it is time to short bonds. do you think it's for real this time? >> keep in mind that it's been

the wrong trade for many years. i do happen to think there's going to be a lot of normalization consequences that will result in upside in yields. but consider some facts. we're going to monetize more debt this year than ever before in history. if you don't believe me every major bank reports on it. central banks now own, get this 22 trillion -- 22 trillion in assets and a good chunk, almost all of that, are government securities. our economy is 17 trillion. it puts some kind of perspective on it. what i'm getting at i do believe rates are going to be uneven but not treated evenly. i think southern economies of europe rates are more vulnerable than treasury rates. we're all vulnerable because this is an experiment and nobody knows how it's going to turn out. i would caution that the inventory of actual tradeable securities is the problem.

okay? i think that's where it starts the catalyst. but in the grand scheme of things on the big picture, even though i think this trade can work i still see rates lower than many expect in the big picture because i think that we are in a new normal of growth hence, you wouldn't see so many officials questioning things like productivity and growth. boom, it finally dawned on them. seven years in, it's not working. not working the way it should. >> the other reason this is practical and matters so much there are a lot of people out there with huge fixed income portfolios. those flows have been more than flows into equity again. >> right. >> they wonder if they get out of the way of an oncoming truck. >> you've had central banks buying moran bodz than are being issued by their respective governments. you have negative interest rates. how negative are they going to get? they have room to go on the upside but almost no room on the downside. very asymmetrical.

that's been the case in japan for decades. it has not changed. they call that the widowmaker. >> i thought that was natural gas futures. >> that too. >> there are too many of them to count at this point. >> exactly. >> i guess the question for kate is, is this something that a retail investor could do should do to hedge their bond portfolio? >> i'm not sure i think a retail investor should do it. it talks about how this trade is available to many people. the easiest way to do it is through bond futures, right, jim? >> you can do that. you can buy floating rate securities. >> last word. >> only if they're aggressive should they do this. depends on the strategy. >> as kelly knows, you have bond funds that are looking into these trades. jan janis is one example. >> key point. thank you, rickster.

appreciate it. >> thank you. >> have a great weekend. paul singer will be one of the featured speakers at cnbc's delivering alpha conference. go to deliveringalpha.cnbc.com for full details. the massive silk road underground drug dealer case we have information. >> this is on the founder of the silk road. he's been sentenced to life in prison. you might recall he was arrested in october of 2013 and then found guilty on seven charges of february this year. ulbricht ran an online drug bazaar including where you could buy other things including murder for hire fake i.d.s, et cetera. all transactions were conducted in bitcoin, the virtual currency. during the trial, his lawyers did acknowledge that mr.

mr. ulbricht did start silk road but then said he left and came back to run it. at that time he was arrested. sentenced to life in prison. back to you. >> thank you very much this hour. for years we've been hearing about the death of the mall. they hope a shopping experience will return people to the malls in droves. and one ceo paying college tuition for his employees' children. can wait for that. ...this isn't that car. the first and only car with direct adaptive steering. ♪ the 328 horsepower q50 from infiniti. we live in a pick and choose world.

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the huge increase in online retailers and same-day delivery is becoming a real threat to malls. now the malls are fighting back. courtney reagan is in san francisco with a look at what could be the high-tech mall of the future. >> the idea of the death of the mall gets a lot of attention but when retailers like sears, dalia's, radio shack, the smart mall is what fills that space. mall operator westfield is considered an innovator. here on the fourth floor of the san francisco center mall the first of its kind 37,000 square foot space is called the spoke. it's all sin con valley-esque. it's the first ever co-working space in a u.s. mall. there's also pop-up shops that face the mall demonstration and event space. it's all available for short-term rental. the spoke offers a short-term physical home for innovative

companies from startups to large brands most of which have a focus on the intersection between retail and technology. space can be rended for even just a day. shoppers can design custom shoes or custom t-shirts. five designers with the fashion incubator of san francisco, backed by macy's, will be here for a month. even angry birds creator has its new virtual reality game for shoppers to experience. now, westfield's co-ceo steve lowey doesn't think the mall is dead obviously but he thinks darwin's theory will play out in retail. in order to survive you have to be a mall that adapts most especially in this case when it comes to technology. having a good location doesn't hurt either. this mall is one of the most heavily trafficked in the country. kelly? >> wow. courtney, stay right there. it looks beautiful. that what do you think? >> that was amazing. i get so burned out of the

coffee shops in brooklyn. this sounds like something there's a need for is a public mobile office space as well as a flexible space where you can have an interactive experience although online. >> how different is it from other parts of manhattan or other cities that are heavy in retail space commercial. you add working space into that is that the point, jim? >> i think it's the niche that will get you here. the malls still have the same problem. people can go there and eye ball things and buy them cheaper on the internet. if you have a location that's going to be an event to go to the mall itself is the destination because they'll have different retailers, different products, different new innovations, different technologies it might be fun just to go there. that's the difference between that and what a brick and motter does -- brick and mortar does. >> is this a whole different kind of way to experience the mall going forward or geared at

getting kids back in the mall. >> it's not men the to be a traffic driver so much as it is to stir innovation in retail and tech knowledge. traffic will be a nice ancillary effect that happens but this mall actually gets a pretty nice amount of traffic. you do see a decent amount of millennials that still hit the malls they need some place social to go to hang out with their friends. the point is hanging on to the millennials as they grow and become a little bit older consumers. i think there's been a lot of interest so far. folks we talked to said yeah these shops will change every month, i'll come by and see what else i can do. if you can make custom shoes or t-shirts that gives you an activity, a personalized product to take home with you. >> i think it looks cool. appreciate it. i agree, the loud music in the coffee shops, it makes you crazy. >> it does. i think that's done for a reason. i think it's so you can't make phone calls or work. they need a mix of people to sit

there and show there's actually pedestrian involvement. >> right. tricky balance to strike. >> yes. parents of current college students know tuition costs can be sky high. boxed has announced he'll cover four years of tuition, minus room and board for the children of his employees out of his own pocket. what's behind this major bonus? we'll find out from the man himself later. first, though the tampa bay lightning are taking on the new york rangers tonight in game seven of the stanley cup sell miss. jeff vinik hasn't only been involved in hockey after running of the world's largest mutual funds and successful hedge fund he's working on a property in tampa. we'll get his view, next. now it's time for a "cnbc news update." here what's happening at this hour. a federal law enforcement official says former house speaker dennis hastert was making payments to a man in order to conceal a sexual relationship they had while the man was a student in high school.

who was indicted on charges related to a $3.5 million in bank withdrawals to keep the man quiet. top republicans aren't criticizing the removal of cuba from a u.s. list on terrorism. house speaker john boehner says the regime got this for nothing. a seven-mile stretch of southern california coastline where oily globs of goo washed ashore will remain closed until officials determine the water is safe for swimmers and surfers. they began washing up on wednesday. we end on a sad note. american express president ed gilligan died suddenly after falling ill on a corporate plane to new york. was coming back from a business trip. he was 55. he's survived by his wife and four children. the network that monitors her health.

the secure cloud services that store her genetic data the servers and software on a mission to find the perfect match. and the mom who gets to hear her daughter's heart beat once again. we're helping organizations transform the way they work so they can transform the lives of the people they serve. so, how do you feel about cash back? i would not say i'm into it. but let's see where this goes. [ buzzer ] do you like to travel? i'm all about "free" travel, babe. that's what i do. [ buzzer ] balance transfers -- you up for that? well -- unh. too soon? [ female announcer ] fortunately, there's an easier way, with creditcards.com. compare hundreds of cards from every major bank and find the one that's right for you. creditcards.com. it's simple. search, compare, and apply. [ ice rattles ]

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welcome back. markets closing out the month today. the dow dropped 115 points and art cashin told us 47% of that volume today was on the close. an incredible amount with a few other things including a rebalancing. still a decent month for what we

see as a fearful one. humana soaring 20% on the news that the health insurer is working with goldman on a potential sale. and chipmaker altera up on news it's getting closer to a deal with intel. do you need stock pickers to find growth in the market? active funds are outperforming with active funds of slightly more than 3% 2.8 for the passive guys. they're not too far behind. morning star actively managed u.s. equity funds have seen 700 billion in outflows since 2006. join us from post nine with his take is jeffrey vinik who used to run one of the best known active funds, the fidelity magellan fund. he is also the owner of the tampa bay lightning. welcome to the program. it's a pleasure to have you here. >> great to be here kelly, under great circumstances. >>t in a

moment. >> okay. >> the death of the active investor has been greatly exaggerated, as twain would say, do you think that's true? >> yes and no. i think a balanced portfolio makes the most sense. the market has got more competitive. more smart people trying to pick stocks and industries et cetera. it's important for those investors who want to use active portfolio management to do their research and have the best managers. >> you were at the magellan fund in the mid-90s. lately there's been talk about whether the markets are broke and the different factors that might be contributing to that. do you think the stock market is healthier or less healthy than it was 20 years ago? >> i think it's the same. markets go through cycles over long periods of time. there's better liquidity at some periods of time. there's ups, downs, all kind of different conditions. for companies, the new york stock exchange, the financial markets are a great place to raise capital.

our system is great. entrepreneurialism allows that to grow. on the other side for really good investors who do their home work, there's opportunity to make outside rewards. >> you still have your own management in your own fund. >> i do. i focus on the lightning and real estate and other things. >> that project which is co-funded by bill gates is a massive project for tampa. right now that part of tampa can be a little bit desolate. what are you going to do to justify more than a billion dollars in mixed use down there? >> it's becoming less desolate by the day. there's an awful lot of growth going on in downtown towntown tampa right now. what we're going to do around the arena, there are several major anchors, convention center, at quarium, port and cruise ships, the history center, our building. that's 3 million visitors to the uptown district a year on the

water front. what we're going to be doing is the university south florida school of medicine health heart institute are coming down. we hope to get the museum of science to move downtown. >> a lot of that was caught up in state funding. is that resolved? >> it's likely to get resolved over the next month. i let the politicians do their job. i don't interfere. bringing usf downtown i think the legislators see that and we're optimistic. we're planning to bring in office buildings, a couple of corporate office tenants. we've had very good conversations. there's a lot of interest new hotel, residential, 2,000 residential units. this will be mixed use 24/7 live, work play. it's a cliche but that's really what it is. we want to have a great environment for millennials, empty nesters. >> sure. >> for all kind of people to come and enjoy and be in downtown tampa. it's a great place to live. >> i think kelly wants to talk sports in just a minute. another topical question about

fifa. i knowformer direct he of the liverpool club and a sports investor. what do you make of the scandal. >> i'm focusing on hockey. a lot of time i do real estate. i do know there's a lot going on in the world of soccer. anything to make the sport anything that improves the integrity of pro sports, i think is a really good thing. >> dallas-ft. worth area as you know, the cowboys moved out of dallas mostly because local politics. that's what a lot of people don't realize. in ft. worth it's pro-business. we have the sundance square. how important is it for politicians to be pro-business and how much of an impact do pro-business politicians have on their local economies? and then finally, i'm looking to are a couple tickets tonight. do you know anybody that might have them?

>> thank you for the question. that's a great question. it's critical to have the local politicians. we spent a lot of time explaining to the politicians, the legislators at the county level, at the city level, at the state level, explaining our vision for what we're trying to do, the economic activity, the jobs. we hope to bring thousands of jobs, a billion dollars of incremental economic activity, tens of millions of dollars of new tax dollars to tampa. governor rick scott, mayber bob buckhorn, the county commissioners have been so supportive of our project. that's why tampa is on the move these days. this city is doing great. >> speaking of being on the move jon cooper the coach has done a tremendous job. how much longer is he going to be with the team. >> i hope for a long time. he's not on the move. the only place he's moving to right now is madison square garden. steve yzerman is our general manager, up for gm of the year we have great people in the

organization. whether it's hockey, real estate, the stock market it's all about good people. >> you also have a lot of former rangers on the team as i understand pitting some former teammates against once another. how is this going to contribute to the game seven atmosphere? >> there are several former rangers players on the lightning, former lightning players on the rangers. you don't need extra motivation. this is for a trip to the stanley cup final. >> doesn't it always seem like hockey goes to seven games. >> it does because it's the greatest sport. it's so even during the season it's a dogfight to see who makes the playoffs. in the playoffs the series go six and seven games. it's so even so compelling. half the games are decided by one goal. >> there's a ton of overtime. >> overtime is that exciting unless you're an owner. >> everybody, grand folks, family friends, everybody loves the series. congratulations on your success on a lot of fronts.

i almost want to say good lightning because you're here but that would be wrong. >> no nobody recognizes me in new york. not a problem. >> we all hope for a great game tonight. thank you. appreciate it. >> thank you. tuition costs are soaring. one ceo is putting his own money on the line for the education of his employees' own children. we'll talk to the ceo of boxed about why he's shelling out the cash for this major park. and monday we'll be join by the ceo of clovis oncology. you won't want to miss that, coming up on the "closing bell."

we talked many times about the rising cost of a college education. now one ceo says he's going to play for the college education of all his employees' children. what's behind this big move? joining us now, chieh huang, the ceo of boxed. it's an online retailer of bulk household goods. how much is this going to cost you. >> quite a bit. it's actually me. you picked up on a great point. it's my personal commitment and my stock in the company an a bit of my cash that's going into this fund. >> it hasn't been uncommon in the past to see universities offer employees benefits. it's like henry ford giving people a raise to buy more cars. >> yes. >> why do you feel this was so important and to you. >> if you boil it down to why i

did it a big reason i did it you have a lot of ceos on the show. you have them daily, tens of ceos on these shows. the thing i've realized is that the skill i was blessed with being hopefully a decent ceo, i'm nothing without the folks that work with me. and so no ceo, whether it's what anyone from any fortune 500 company, their skill is tied to those folks directly under them. i realize that. that i'm nothing without these folks and that i want to give back to them. in terms of giving back through upward mobility. >> why not give everybody a raise or one-time payout or put the money in an investment fund. >> i was thinking about that. you get a car, you get a car. not as good looking as oprah, not as flamboyant or austacious. you're not suddenly going to be able to afford college.

>> you saw at an evening event that a lot of people couldn't come because they didn't have transportation. how did that help you make the leap to the college idea. >> it's a great tie-in to the car idea. if you can't afford a car, then are you ever going to be able to afford college for your children? if you can't afford college for your children this generation are they going to be able to? there's nothing to break the chain of kind of like lack of upward mobility and i really thought this was the most i can do. >> if you're behind on your bills it's hard to save and save over the long term. >> absolutely. >> what i love about this it wasn't mandated by legislators or policymakers. we saw a guy in san francisco that decided he's going to pay everybody at least 50,000 a year. you're seeing some of the so-called 1% start to do a little bit more thor those that got them there. i think that's great. my question to you, we were joking about this afteroff the air, this guy is catholic he's

protestant -- >> i don't know if you can actually legally ask people that. we have a few folks with a lot of children. they texted back that their wives said this is our green light to have even more. >> i hope you have a good wealth manager who is giving you compound returns of at least as much as universities are. >> the majority of the fund is actually stock. my stock in our company. so if you think about like early technology companies, we're only about 18 months old as a company. if the founders had put together a portion of their stock when they were 18 months old, that would be a significant kind of -- >> you have 12 children at the company. >> right now. maybe there are some buns in the oven. >> but this right now is not a cost for you at all. how much do you anticipate this could grow? is there any cap on it?

>> no cap right now. only tuition. no kind of living costs. i want to make that as broad as possible. i do want those children of the people of the boxed family to be able to work hard and know the value of a dollar by working. >> no private versus public. >> someone kind of -- someone shot me a picture of a really nice gate and i was like wow, looks expensive. of a private school. >> how long do people have to stay with your company? >> that's the thing. this will be a long ride and building in a great, big company. as long as you're with this ride, whether it's the day before or ten years before on that day whether we're up here ringing the bell or we have a great outcome for the company that will be the set that's eligible. >> you have to go public in order to trigger this? >> not only public or if there's an acquisition of our company, that would be the day. >> that's when this turns on the clause and grants people -- >> exactly. >> in the meantime they don't get to draw on it. >> we put together a little bit of cash. we have someone in the warehouse

that his son is going to college in just a few months. wee we're covering his costs. >> have you seen a ramp up in applications. >> yes, we have. >> i love it. we could talk for another 20 minutes. >> we should over a beer after this. >> sounds like a plan for sure. chieh huang of boxed. groans have drones have been -- we'll be joined by the founder who says it was a long-time coming. he's bring something of the drones right here to the flex new york stock exchange. jeffries is calling virtual reality the next biggest trend in tech. will it catch on or go the way of 3d tv and fade into obscurity? that story burning up today's virtual hot list. that when we come back.

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virtual reality has taken this week's code conference by storm. jeffries named it tech's new hottest trend but is it buzzing enough to make it to the hot lest on msnbc? >> right now what's getting attention is the story scott

cohn about with wisconsin adopting a right-to-work law where you're not required to have union membership, you have 25 states right to work 25 states not right to work. so he took good look at the civil war kind of brewing there. that's burning it up. also burning it up diana olelic olelic's piece about housing markets. almost 60% of homes are not beating their asking price. people are loving that one. finally we had wall-to-wall code conference and the stories that seemed to be popping out the most are virtual reality. taking a look at what gopro is planning. it plans to go into the market by the end of the year and what google is doing with its cardboard product. we've been playing around here at the web site with stuff. we have samsung gear that -- >> oh wow. >> picture cnbc in 3d. that's where we're going. >> what are you seeing right now. >> i'm seeing kind of blurry because my samsung phones are tapped out here. but we're working on it. those are my hot three for you.

>> these are early days anyway. that's why it's important to get people the info. thanks alan, have a good weekend. it's a bird it's a plane, no it's drone. we'll head outside and get a close look at unmanned aircraft. "closing bell" is back in two.

welcome back. drones, as you probably know, are beginning to take over the skies. one company was just granted faa approval to use its aerial vehicles and unmanned sensing systems, it's u.s. 2. joining us right now with a first look at some of these crazy looking drones is founder dan murray outside of the stock exchange. dan, welcome. >> thank you. thanks for having me. >> i'm used to seeing these looking drones but what the heck is this one over here? >> i think that's what most people are think of. that's what you see as a toy most people areplaying ingplaying with these days. this is a plane-type aircraft and it can stay in the air much longer than that can to collect the data. >> give us an example of what you can do with this that you can't do with that? >> we're about collecting huge amounts of data in crops and farms. this can stay in the air 20 minutes, this guy can stay in the air an hour hour and a half. >> wow. so you were granted approval by the faa to do what? >> to use these commercially.

that's our intention is to bring this technology to the agriculture industry and allow them to use this to kind of collect information on how the crops are doing and optimize their yields. >> because agriculture is one of the industries where they're allowed to use these aircraft. otherwise they're trying to limit it to people in their backyards playing around. >> that's correct. the faa wants to keep this out of controlled airspace or populated areas so it's good to have this in the field where it's away from populated areas. >> i did a story about five years on support farmers in nebraska and one issue that came up analysts at the time and other farmers that wanted information basically resorted to driving around the interstate doing what they called windshield surveys, looking at whatever's on each side of the road. >> they call them scouts. they're usually walking around the perimeter of the field and you can only see so much. when we put this in the air, you get an instant view above and you can see 100 acres at a time. we can tell you down to centimeter level accuracy where there's problems in your field. >> wow. >> this looks like the planes you used to see in the mall

where you throw it and circle it back. how vulnerable is it with a strong wind. do you have to monitor wind conditions when you're out there? >> it's pretty stable. we try not to take it in winds above 20 miles an hour which lets us operate most of the time. again, you say it looks kind of lightweight. it is. we built it like that on purpose because the sensors that are on board and what we do with the data is the important part of the equation. we want this to be almost disposable. >> right here in new york it's very difficult if not illegal to operate drones. >> that's why we can't fly them right here right now. >> i wish we could. >> is that going to change? can you operate in new york or will you? >> we can't and we won't. our intention is to stay clear of controlled airspace which we're legally not aloud to be in in the first place. >> so we'll never have them in new york city is. >> not from us, that's for sure. >> but the central point in all of this, and as the drone industry which is so new we're still trying to figure out how big the main companies are you guys are four people. so much of the legislation, the faa has taken a stance against

it for the most part driving a lot of innovation outside of this country. what do you think they should do in order to both encourage innovation but make sure the skies are safe? >> we're rooting for the faa. for the longest time the indications were they weren't going to allow this type of activity. that's reversed a bit. obviously fact we've been granted the exemption is a good thing. we believe they're working on ways to integrate this technology and we're looking forward to. >> that how big could you guys get? >> as big as possible, obviously. we think this could be applied across the country. >> are you using these in the oil patch right now? i know they're using drones but are they using your product? >> no we're scarily focused on the agriculture industry right now. >> we have to go but gopro getting into business this week. what does that mean to you? >> it doesn't mean much to us because i think that's more of a consumer product but i think that was a natural progression from them. >> you have a gopro on here now. >> sure do. >> is that what you use? >> that's 53d robotics program. >> dan, thank you for being

here. i love getting a look at these. maybe someday we can see them flying. dan murray appreciate it. that does it for us on "closing bell." time now for fast money. melissa lee, what's going on? one chart, five words, the great ketchup trade. >> i think i heard train. straight over to you guys. >> thanks kelly , "mast money" starts right now. i'm melissa lee. traders are tim seymour, steve grasso josh brown and guy adammy. tonight on fast oil's massive spike, crude soaring back above 60 bucks a barrel ghu is this the real rally on deck? next week with the kickoff to opec, a top energy analyst weighs in. plus billionaire investor paul singer says now is the time to get against treasuries. will he get burned like so many before on his next big short? first to the story rocking the street bristol-myers tanking, more than 7% on data released from as