they can't make the f-150ss. >> pickups and suvs. >> yeah. and subsidized payments 84-month terms. >> what's fast money tonight, 5:00? >> these auto sales, they're on fire today. that's tonight at 5:00. >> second derivative "closing bell" starts right now. welcome to the "closing bell" everybody at the new york stock exchange. >> busy day for this tuesday in the transportation sector airline scares bomb threats, flights grounded, tsa failures and the stocks have been struggling today. you see across the board there, minus signs right now. we'll bring you details on what all the flight trouble means for the airlines coming up. >> and wall street former chair, sheila bear has a message for america's youth in her new

book and the big banks may not like what she has to say. she will join us here live at the stock exchange. >> plus, this is very cool, disney's getting into wearable toys. it's a whole new, different innovative line of toys for kids. we'll tell you what the new revenue stream could mean for the media giant. this was just unveiled within the last hour. julia has that for us coming up here. it's cool. first though, the auto sales and what's going on in the markets with an hour to go the dow making a bit of a comeback only down about 5 points right now. s&p 500 turned positive nasdaq down by two points. interested to ed toed to look at the auto names and look the the 17.8 million autosales. whether there's a rally as well. >> these month lip bases, the strong nest since '05 or '06. just incredible. you know so many industries are so herky jerky right there.

>> even the economy, broadly speaking stock markets are trapped. here's a breakdown. >> we had phil back with us from jpmorgan funds. he's with us here at the big board. mainstay capital management joe is back with us and rick santelli joins us as well. david, let me start with you. on a day when we get these blowout auto sales figures, you also have a fed governor who says it's possible the economy's not strong enough to accept a interest rate increase this year. probably have to wait until next year. how do we reconcile these, you know, these divergent mixes of news? >> gdp that we're concerned about, we have employment or jobs numbers that look good. wage growth it's slightly improving. and then you have a blowout

month for sales on u.s. auto sales, the best since 2005. we think when we look at the transaction price, it'll be one of the best months ever for the auto industry. and look it's a single industry, it is a good indicator of economic activity as is housing. so we think that, you know the economy continues to chug along here, growing all the same. >> phil is joining the discussion, having just brought us those numbers we're talking about, i'm amazed when we show shares of ford they're still stuck in the $15 range, is this all about europe? >> it's not just about europe. it's about a broader question about what it's going to take to make the domestic auto stocks more attractive. we'll talk about that in a little bit kell prelim let's first go over the numbers as i mentioned, auto data announcing that the pace of sales for the month of may coming in at 17.79. here's the reason why. look at the big four automakers

look at sales last month, initially you're going to say what, up 3% down a couple percent, that's not the point here. the point is that they were much better than expectations and relatively last year yeah they were up 4% up 3% but again, they were between 2 and 4% above expectations on wall street. and here's what was working last month, pickup trucks they're in demand right now. when you look at what they're getting in terms of transaction prices they are rolling. suvs are also in demand. and we're seeing higher transaction prices substantially higher transaction prices when it comes to pickup trucks and moderate incentives. meaning they don't have to spend as much to close the deal in the showroom. look how far we've come going all the way back to 2009 in terms of the pace of auto sales, and we bottomed out in 2009, and just over ten million vehicles for the year. last year up to 16.5. and again, the pace for may, 17.79 million, that is the

strongest monthly pace since late twooi2005, early 2006 look at the domestic auto stocks. we know what's going on there with sergio pretty much banging the table saying we've got to make a deal to consolidate. when you look at gm and ford dead money right now. and that's after gm announced all of the buybacks the greater dividend, and yet, that hasn't moved the stock. and it brings up the question what will? because you can't complain about the business in north america. it's stellar right now when it comes to the big three. >> exactly, phil thank you. joe, turning to you, i don't know how specific you can get on the names how do you incorporate the stronger data with the underperformance of the auto names and the move of this market? >> you know i think the vehicle sales numbers that we saw are clearly an indication that economic growth here in the u.s. is moving in the right direction. we're on a better footing, and i suspect that so long as we continue to get this this

economic data of course we're coming out of a difficult first quarter. this topic of when is the fed going to raise interest rates will be hotly debated until it actually comes. remember, we haven't had a federal reserve tightening policy in nearly a decade. and you couple that with of course some better news from overseas firming, inflation data out of europe. i suspect that markets will keep moving higher. >> and what kelly's getting at. why are these stocks, if they're selling so much right now. why are the stocks so flat as bill pointed out, would you buy the autos here, joe? >> we would. i think we're looking at names and companies that stand to benefit from a healthier consumer. you know you've had this tail wind from lower oil prices we haven't seen them materialize into spending. clearly looking at vehicle sales is encouraging, step in the right direction, and i think overall when you look at valuations today, it's easy to understand why so many investors around the world are just a little bit nervous. again, couple that with the head lionels we're hearing, whether it's the fed, greece i think a

lot of investors are just kind of sitting on their hands waiting for more clarity, but in the end, you know we believe that the u.s. economy and the global economy is on a stronger footing, and it's going to be moving upwards. >> quick, rick santelli jump in here do you think that this is as much about a strong consumer as it is about some of the financing conditions for autos -- the credit's there for the taking. >> right. profitless prosperity. >> yeah no to me actually i see a bit of a darker underbelly to the positive car figures. and you're right, kelly, it's because can't get financing for a house, the new house is a car. and the payments are probably about the same size of payments of american buying houses 15 20 years ago and the average slent 66 months. there's so many 84 and 96 months that are thrown into that it's distorted the average. so i think it shows that the consumer may be a bit tapped out, and i'm not sure that's a good thing. and in the context of jobs

tomorrow, the trends i see are as follows. let's look at september through december, it was 250, 230, 284, 275. let's look at january through april of this year 169, 175, 200, 220. so the point is everything seems to be slowing a bit, i know we can rearrange the deck chairs in terms of how we calculate the numbers, but supposedly every time we turn we're looking for recovery the problem is we live in a circular neighborhood. >> rick when you, rick when you, when you look at these numbers, transaction prices for the month of may for cars it's not just about the volume at 17.8 million, we've had one of the best months ever for car sales, and financing incentives are not that big a part of it. you'll see that in transaction price totals for may. you can't deny that these point to -- >> i think between the financing, the subprime and leasing, i think we are

talking -- >> phil jump in here sir. >> subprime. subprime is actually down. it's dropped in the percentage of lending, number of defaults repossessions down i know people want to bark about that that's not an issue right now. >> no not about defaults year to date -- >> we can go on this all day long. >> subprime loans are bigger than they were three or four years ago. >> not in autosales. >> they're lower historically, rick, we can go round and round all day long about this. >> we're not buying the stocks because we pulled so much forward, in my opinion. >> people are not buying the auto stocks rick because we're at the end of the cycle. you never see -- >> exactly. exactly. end of a cycle and consumer's tapped out. >> no it's not -- worldwide, too much capacity worldwide. too many auto plants building too many vehicles. and at some point, somebody around the world is going to doctor have to say, enough.

i'm turning off this spigot, and nobody wants to be the one. >> they love tesla's stock, 30,000, that speaks volume. >> we have to go but that does help us are with the fiat what we've heard from fiat writing that letter to gm looking to push consolidation in the industry given your comments about excess capacity here. >> absolutely. >> real quick, who was that? >> bottom line too much capacity up there. >> they are two emotional investments that individuals make. one is a house and one is a car. this is no doubt really good news for us that the fed's going to pay attention to. consumers are feeling more confident, biggest monthly auto number since the crisis began. i think it's a really good sign. >> all right. >> phil thank you for joining us. we got other story that we've been following, everybody wants to talk about. i know the new development's on greece scrambling to renegotiate the billions of dollars in debt owed to creditors. >> facing a 300 million euro

payment on friday chief correspondent michelle cabrera joins us now, are they going to make the deadline? >> you know the payment on friday, it know everybody's interested in, kelly, but it's actually not the biggest event we're talking about in the next couple of months. there has been a significant development in the last 24 hours, which suggests a significant attitude change upon the part of the european creditors. there was a late-night meeting in berlin last night hosted by the german leader angela merkel with all the other leaders with the european institutions who are greece's creditors. there was a two-fold goal to this meeting. one, they want to craft a plan to present to the greeks. the reason this is significant is that up until now, they have not wanted to do this. they wanted the greeks to come guard with their own reform program, for them to own it so the institutions don't look like they're imposing their will on the greek people but thus far, the greeks have not brought forward a reform program. >> yeah i thought they did

yesterday, wait a minute. >> this is last night's meeting. >> okay. >> this is what the point of last night's meeting was, was to get together and do this. right? the second goal was there was actually differences among the creditors, the imf wanted to be tougher, european commission wanted to be easier. you present a plan reconcile those differences. in the last half hour we have learned from reuters quoting a senior european official that they finally have gotten together this plan that they don't want to look like an ultimatum when they present it to the prime minister of greece but it's probably going to look like one. next up once they do that we wait to hear to see what the greek prime minister does with this plan. by the way, he submitted a plan supposedly last night -- >> right. >> who knows. that was clear lay political move on his part to say, oh no i'm still in charge but, i guarantee you that was not one that satisfied the creditors in a big way. >> got it got it.

thanks michelle. >> so let's see, everybody wants to talk about this david, what are you going to do with this? i know you guys were arguing on twitter before the show today, with baumpbl of people -- with a bunch of people whether you should be buying european stocks to get ready to the expected resolution with greece. what are you doing right now in the meantime? >> okay, so we have this payment at the end of the week that the imf has already said that greece could elect to make a balloon payment of 1.6 billion euro at the end of june rather than four individual payments. so this is really not a big deadline this week. you know the bigger issue is when we get out into july then september when we're talking tens of billions of euro and what happens. and you know when we frame it it's -- we have the rhetoric and the philosophy coming from the greeks, and the ecb and imf and

european commission trying to bring them together and get to the a real solution they're not getting there. they're continuing to stall. they're going continue to do that as long as they can, in that case europe is good. we think that's what they do. they find a way, and if not, that's on that you would buy european stocks on that. >> yeah sounds like david, you like either way here to some extent. we're out of time. thank you so much for everybody for being here. david, joe, bill rick and michelle this afternoon. 45 minutes to the close here. we saw fifa 100 turn briefly positive. >> down 115 on the open this morning. we've had a volatile day. just doesn't look like it right now. >> now we're down 20 points on the index. s&p is down one point. >> packed show coming your way. former fifa chair set. and investment banking, and ceo, we'll get into pressures facing

the banking and retail industries coming up. the airline industry under attack. multiple hoax threats against u.s. aircrafts just this morning. screeners failing to detect mock explosives. what needs to be done to safeguard the flying public plus airline stock picks to buy.

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airline stocks continue to take a hit for the most part as news of trouble in the skies keeps breaking. >> this morning, reports of bomb threats against five airlines they were deemed not credible by authorities. also today though, united airlines briefly grounded flights. >> trying to merge is not easy. for more on what this means for the airline industry jack moore is back with us director of research for the charitable trust at the street and danny kelly, 747 captain for the airways joins us on these issues as well. jack every time we turn around there's something going on here. and it takes a toll on the stocks, doesn't it? >> i think today is just a wake up call that this sector uniquely has risks that others don't have to deal with.

and one thing that was even more troubling was on one of the flights in united the pilot went over the phones and said they were a mess. that doesn't install confidence. it just goes to show, integration risk as well. >> i'm sure you've lived through some of this. do you get the sense that for one reason or another, more automation, the mernlers or cost-cutting pressures that the skies are getting more risky? >> well i think they are more chancy. risky sounds a little a little risky. risky, yeah. i think there's no question the whole industry knows that the computer problems that united and continental have are still going on. it's a real problem. and it's going to take a long time to get fixed. as far as the bomb scares go you get these nut cases that

think it's fun to do i don't know any airplanes bombs where somebody called in ahead of time and said there's a bomb on the airplane. these are crack pots. >> jack denny, do you think these are the bad guys floating trial balloons to see what the response would be or do you think this is just a crack pot doing this? the second time in a week this has happened. >> right. no i think it's crackpots. i think the bad guys know what happens with a bomb threat. and i don't think they would do that. they don't want to warn anybody, it's the crackpots are that doing this kind of thing. >> jack, which airlines here -- risk, but still a buying opportunity. which names are particular here? >> with capacity issues they face right now. >> yes. i actually don't like any of them right now if i had to it would be southwest. i was on here a few months ago talking about the airlines i think it's the same issues but first you have pricing risk. the ceos are coming out and a lot are saying that capacity is going to be growing faster than

expected, and there is a pricing war, risk that could be going on. second of all, they're trading like oil derivatives, the analyst community is so deeply bullish on these, guys it also creates another risk. >> even though the ceo of delta told us that the price of oil really doesn't factor into their profitability, it's the demand, the seat capacity out there right now. they hedge their exposure on gas. i get that. we all trade the stock on the fuel capacity thing, but when it comes down to it he suggests that it's not, it has nothing to do with their profitability. >> yeah you know i think the thing is that watching these stocks and how they've traded in correlation with oil prices and they've taken the benefit when it's gone up. i think when oil prices went down, the stocks were flying. i don't think that at the same token you can have oil prices going up and the stocks not coming down. it wasn't balanced. >> yeah that didn't help with

crude oil popping a bit. we'll leave it there, thank you so much. >> thanks. all right. heading to the close here the buy is the sale sign. right now with 39 minutes left the dow is down about 17 points. up next morgan stanley's head of investment banking gives us his reaction to bill dudley's warning for a coming regime shift in financial markets. also coming up netflix says it has no intention to put ads on its platform. but should it? we'll talk about their business model with our netflix stock pros, coming up. the time police arrive on a crime scene they could have little to go on. a vague description. a single piece of evidence. a partial plate number. with an app from ibm officers can now access over a billion police documents to find hidden connections and identify potential suspects. ibm analytics helps one hundred thousand officers

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welcome back. let's now bring in our mary thompson who join us with an interview with the ceo of morgan stanley international and the president of the firm's institutional business mary. >> thank you kelly. thank you for coming down good to see you. i want to start first, let's start with your ceo of the international business first. i want to talk about greece. do you think they'll get a deal done? >> if they get a deal done it will be a short term rolling deal. there's been a lot of political breakage here. a lot of bad feelings in brussels generally, i'm negative on a long-term deal i think there is a real risk of capital controls coming in. fortunately, europe is a fire blanket with qe and everything else but it does raise longer term issues for the european currency itself. so, you know, i am concerned, i

think mark is looking tough. >> you think greece could eventually exit? >> well the greek government do not have a mandate to take greece out of the eu. that would have to be a referendum to the people. i think what's more likely is you'll get a staycation capital controls for the time being and it'll be choppy far markets. >> let's talk about the eu a little bit more, we had good inflation data people took it to be good. is this, you know a positive sign? something we should hold on to that things are getting better over there? >> well, one swallow doesn't make it spring. it's a good number surprised on the upside. mario is clearly very concerned about the economy. huge amount of easing coming in. and it looks like it's beginning to work. but it's very early yet, and growth is still very subdued. i think to normalize growth in oil is not really there. so i think, you know, we'll see this qe coming off at some point. >> i want to focus on the uk as

well. you're based in london and there is concern about a possible grexit. do you see this happening? >> it's clearly a possibility. opinion polls in the u.k. seem to support europe the conservative party itself that has an issue with europe of course they've lost votes in the u.k. my view is that the central case is that once the facts are known, they will vote to stay in. and i think that referendum is a good thing to do because it'll show the facts. >> do you think you'll get the reforms that he wants though, cameron? he wants reform before he brings this. what needs to be done? >> well i don't think he'll get all the reforms he wants, but there's a broad agreement amongst the principle parties in europe to have some reform. but that kbienled with a referendum -- combined with a referendum should be good enough. >> let's take it back closer to

home. this has been an extraordinary strong year for mna. do you see it continuing? pullback or are all the factors still in place? >> i mean everything is in place. liquidity is cheap, there is evidence that corporations are beginning to capital expenditures, and obviously mna is a use of the firm's resources. it is at record levels. >> one thing i want to talk to you about is the possibility of rising interest rates here in the u.s. and, this raises has raised a lot of questions about potential liquid i did issues in the fixed income markets. a lot of people are nervous when rates go up we're going to see these issues that are plagued the bond market fixed income market happen again. what's your take somehow morgan stanley positioned? >> we as you know have co-authored a big report on liquidity, and we are concerned. we actually think that it's not

just a question of rates going up and what will happen it's also functional whether there is a risk of the market because of regulations, which have actually caused dealers to reduce repo balance sheets and the sharp observers they'd be. it would be my single biggest concern, the market structure. it's hard to quantify that look at individual days of things that happened like october 15th and see that you're getting this gap in volatility which is not good. >> we want to thank you for stopping by to chat with us today. we appreciate it. we've been speaking with with the president of the morgan stanley institutional securities group. back to you. >> thanks so much. little bit of a cautionary note there on the markets. that was really interesting. time now far cnbc news update let's get out to sue herrara. >> here's what's happening, fifa president sepp blater will resign and call for fresh elections. he was elected to the fifth,

four-year term last friday. the man he beat out, jordan's prince hussein says the resignation was the right move. the state department saying john kerry is in good condition following successful surgery on his broken leg. the white house also saying though it is too early to say what impact his injury might have on the timing and location of the ongoing iranian nuclear talks. walmart says it'll raise minimum wages for 100,000 u.s. employees, including department managers and deli workers. in february, it raised minimum wages for 500,000 workers. and california is responding to the drought restrictions by decreasing their water, used some 13.5% in april. governor jerry brown ordered cutbacks in april to combat the historic shortage. that's your cnbc news update this hour back to you guys, bill. >> all right, sue, thank you very much. 30 minutes left in the trading. here we go the final 30 minutes when all the action can happen. the dow is down 27 points. the s&p down two, the nasdaq

down seven. >> yes we're going to get into the most important half hour of the trading day coming up here on the floor of the stock exchange telling us what's hot on his radar. also ahead, should netflix advertise on its platform or not? it's a touchy issue that has netflix users in an uproar but it could have netflix investors cheering. we'll look at both sides of that issue coming up on closing bell.

up arrows for retail stock today. dollar general's profits beat street forecasts, and macy's up on hedge funds asking the giant to review its real estate assets. so at least we have one bright spot in today's trade, kelly. >> and we'll take it bill thank you so much. down here for the last half hour of trading asking securities what's moving this market today, what are you watching into the close? >> its been an interesting trading session because, you know, they took them down hard and they've been fighting them back all day. now the upfind but the question is are they going to rally them? southside numbers showing up here through the closing bells. looking at the imbalances but an old friend says that may not be the case. we may be rallying them through

here. even though well to the southside now, i think the other side is just lurking in the weeds, and i wouldn't be surprised to see them show up. >> we've been stuck in a range, what is it going to take to marks out? crude oil, the ten-year. you know the transports? >> well i'll tell you, all the things we've been talk abouting are all factors in there. one of the things i'm looking for is a more active banking move, more ipos, a busier calendar. that's the sign of a robust market in my opinion. the number of deals we've had that have come out this year compared to last year, the year before, we're not going to be holding the same pace. you know you see things like humana, those move the marker. when you get the big guys and the confidence booming. >> listen we don't have a ton of ipos, but companies are able to stay private, couldn't ask for more than this in the deal-making front. one of the busiest on record. >> and that way, it's definitely a positive what happens when

you have private equity guys that's one type of remarkable segment. when you have the public companies going after each other, that sends a signal. and all of the sudden investors start to make moves into the market, then we're going to go to the upside watch out. >> in the meantime indicating some selling pressure we'll watch that gordon thank you so much, bill. >> kelly, come on back. we have to talk about netflix, the largest subscription streaming service in the world, may or may not be testing the advertising waters. this is interesting. short promos for netflix originals are now part of your video selections and they usually are at the end of a program. now they started showing up at the beginning of the programs. the company denies this is a prelude to the service, but, some on madison avenue believe that netflix addition of commercials not only would make perfect sense, but it's also inevitable. here with both sides, dan earns from welch capital partners and

advertising brad agat from verizon media. daniel, i mean are we making much of nothing right now, but do you think they should be adding ads? >> i don't. the key to netflix success has been their incredible focus on a value proposition and ease of use for consumers. listen 60 million growing 50% year over year could they add advertising, would they like to reach that audience? absolutely. i doubt it. the question's for netflix are not really advertising, but how much further can they grow in the u.s.? they're at 31 million something already, can they grow that rates internationally at similar margins, and then everyone in the world is kind of coming after them in different directions. >> netflix. >> brad you seem to think going more is precisely what they should be doing. >> well you know i think at

some point they're going to have to do that. i agree, firstly they're going to be expanding globally in this country, but at some point, you know, you're going to reach a sealing. and it's very competitive, they're investing a lot of money in original content, and i think that at some point, you know, they may have to look towards accepting advertising. already accepting product placement, if you see house of cards, there are several advertisers that are in there, and when you have an original series like that you can kind of embed this content into the show, and really the subscribers may not know. >> such a small proportion of their total content, they don't have that option except for in a small number. >> they are putting on more and more original shows. 20 this year. they're really ramping up their investment and that i think that's what's really the future key is because as mentioned before, it's very competitive. you have amazon hulu hbo, apple, sony showtime is entering it. >> don't you think with the minor spending they are going to

need -- certainly they're growing, still, but they're going or it need some new revenue stream to help pay for that as they continue to pay for more original content. and couldn't commercials be one of those revenue streams? >> it surely could be. if you're looking for a play on advertising and video, everyone talks about facebook but actually still the unsung hero of video advertising on the internet is google's youtube. they're probably going to do five billion in revenues this past year on to six or seven this coming year and the reality is they haven't focussed that much on the business. you had, you know, something like reid haystings focussing on youtube. it would be incredible what they could do. and it's short form content, mobile oriented. more than half are coming from mobile and -- >> yep. >> google we own google but it trades at 19 times earnings it's cheaper than anything else in the internet. if you're looking for a video play, i think, google is probably your better bet here.

>> but brad if netflix does push into this space, are they going to alienate viewers? >> oh yeah. i think so. i mean you saw a couple years ago in 2011 the huge pushback they got from subscribers, stock prices dropped, but i mean, you know, if you look at who subscribes and how many hours are spent, it's a huge dent. the median income of a subscription video, subscriber is 75,000 and 49% of the subscribers were under the age of 45. so this was really a great opportunity for a lot of, you know, blue chip advertisers. >> you and i talked during the commercial break, we remember when they introduced commercials in movie theaters. and i distinctly remember the very first time a commercial showed up before the movie began, there was booing in the theater. but we got used to it. yeah, there was a cry to begin with, but we get used to it. >> that's an interesting point, there's a mindset if you're paying for something, you

shouldn't see ads. like in hbo or showtime in the movies i'm saying six or eight bucks to see a movie, why do i have to see ads on top of that -- >> you'd be paying more if you didn't. >> espn you're paying $6 a month to get espn and you're seeing a ton of ads, and that's just embedded in your bills. >> just beginning to realize that. daniel, just before we go you make an interesting point about youtube, another venue where people say maybe if they roll out ads, it'll turn everybody off. that hasn't been the case. >> short form content, it's not, you know sitting down and watching two hours, two hours a day of video on netflix. they're different business models. i'm pointing out madison avenue is excited about the internet and video. they're excited about mobile and video, and you're looking for an investment, we think google is the better play. we think netflix continues to track along as they are. it just got a little bit expensive stock too. >> all right. daniel from welch capital

management, brad and we were calling this story adgate. it's perfect you were on to that. >> perfect what you do for a living. thanks. 20 minutes to go until the close here. markets, we are seeing the selling pressure come down. dow is down 21 s&p down about one point and nasdaq down two and a half. up next cool story. disney unveiling an entirely new category of toys for kids. couple of hours ago, it uses cutting edge wearable technology that can make you feel like iron man. i'll take that. julia has the lowdown coming up. and later, sheila bair will be here hours after elizabeth warren launched a broadside at the sec. we'll hear about her new book. explaining the financial crisis to a young audience. but, without traditional ware wolfs and vampires. we're back in two.

15 minutes left. look at the dow, 30 stocks make up the industrial average more red than green right now. and particularly disney shares of the entertainment giant are down a fraction at this hour. >> and the company unveiling a new toy category bill just a couple hours ago. . involves some pretty cutting

edge technology i suspect it's going to appeal to adults as much as kids. julia joins us with the lowdown, hey julia. >> hey, kelly. that's right, disney's coo tom says toys are designed to marry physical play with a technology of today to inspire kids to use their imagination and run around. the first five-piece package is built on marvel's avengers and centers on a glove. together they motion sensor infrared technology bluetooth and the cloud. the toys talk in the voice of ironman's jarvis. when the kids shoot or are hit by the action figures, the glove vibrates. and while the toys do sync with an app, they also work without any screens or wi-fi. the first package will be released in october with $120 price tag, in november hulk hands will hit stores. follow bade star wars system in 2016 and frozen toys in 2017.

now these avengers toys alone could generate a half a billion dollars in annual sales with other brands helping the line reach a billion dollars annual sales, annually according to toy expert and coo jim silver. so bill and kelly, definitely an area to watch, back to you. >> keep an eye on that. they're going in whole board right away. isn't that risky to spend all that kind of money without, you know instead of just dipping their toe in the water to begin with. >> well they're starting off just with this one product. with these, with the avengers series starting with iron man product, and then the hulk this fall which is obviously the big selling season ahead of the holidays, but disney has deaf niltly done a lot of market research, they've talked to thousands of parents, and they expect this really to appeal to parents who don't want their kids sitting in front of video games or playing on ipads and tablets and other devices all the time. want to get them up and away from the screens.

sop so it sounds like disney has done research both in working with the toy companies, this is produced by hasbaro as well as parents. >> thank you very much. very cool. >> i think it sounds like a lot of fun. >> yeah. get them away from the video screen there. not that there's anything wrong with video screens. ten minutes left it is to the sell side $800 million to sell going into the close. >> then right after the bell earnings from heco. we'll get you the numbers. they're sure to move the stock. lower today, but soaring 80% this year as gopro has rallied two. don't go anywhere, we're back in two.

nine minutes left here dow down 31 points. much wider range earlier, dow was down 115, coming back a bit. joining us towards the close, jeremy schwartz we are still waiting for the fed to move. and in the meantime people are looking overseas now to make investments, aren't they? >> that's right, bill. i looked at the international markets as attractive. three-prong triple threat.

they have qe programs where the ecb just started, japan has been doing aggressive for a long time. monetary macro people looking in the markets. valuations, u.s. stocks looking more expensive towards the secondary support. people think the u.s. is pricey. japan is the cheapest europe's in the middle, and then sort of the third factor is there a momentum trader? the u.s. will have three, 4%. japan's up closer to 20%, europe's up 17%. momentum people are -- >> you raise to the point about japan. if we can show the yen, there has been a big movement overnight that has people talking. yen moved closer to 125 per dollar. what does that indicate to you? >> it was stuck in the range of like 120 to 122. another part of dollar straight. i think broad based dollar streams from the euro which started at 140 a year ago, now it's at 111, even though it's up a little bit today.

broad based dollar strength people expect eventually maybe japan may take more actions to support their economy. i think part is the u.s. climate, the strongest, that's support for the dollar over these restructure row and the yen. >> it seems like we have it figured out too easily here right? as soon as the fed starts raising rates, our market falls and you should be overseas as soon as greece resolves its debt issues with the european community, you start to buy european stock. i mean it it all seems too easy. hasn't it already happened? >> there are part of the macro traders buying because of the support of the fed and the ecb, but there's also the valuation side. there's value hunters are saying japan is a cheaper market. good corporate act vais havists saying we're going to reform. you know, you're trying to take, they've been having all these big balance sheets not using them efficiently. people think that's a positive that japan is getting profitable. there's a combination of factors, value, macro that's

causing people to look overseas. >> because you were so heavy in the hedged if if you will products with, against some of these overseas curb si movements, a lot of people have part-timed in does that create inbalances systemic imbalances we need to be aware of at all? >> i think recognized with currency hedging is more claim vanilla. we are buying the european stocks, japanese stocks and the interns, unhedged ets, the one that's on euro and yen on top of the equities. this more exotic product, but find the stocks, and not making the secondary bet on the early yen. >> really interesting. >> jeremy good to see you. >> appreciate is very much. we have about five six minutes left in the trading session here. mark is holding steady down 25. we'll come back with a closing countdown. then after the bell the gopro supplier posting its results. the numbers that could move the stock, you're watching cnbc first in business worldwide. at the td ameritrade trader group, they work all the time. sup jj? working

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are you moving forward fast enough? everywhere you look, it strategy is now business strategy. and a partnership with hp can help you accelerate down a path created by people, technology and ideas. to move your company from what it is now... to what it needs to become. about three minutes left here. let me show you what the dow did today. on the open this morning, down 115 points but then it did come back late in the day. we spent much of the day positive until the close. we have that $800 million to sell into the close, that seems to be taking a bit of a toll here, down 24 points. two things traders were talking about today. the transport on the open this

morning. transports had a death cross, below the 200-day moving average. that was there. then rally mode. and the transfers are up 13 back above 8,400. against the yen today, he hit 1124 yen to the dollar it has been stuck in that range for a while. there's the yen down .65. here's one the traders, how you been? >> good how are you? >> good. and through it all, our u.s. markets stuck two or three months right now. are we waiting for the fed? >> you bring up a good point. this has been the slowest spring since the early 1960s. its just been stuck in the range. i think we're going to have two things, the fed and of course what happens in greece is critical. >> what happens when greece finally resolves its issue, what do you think happens? some of the people were saying buy european securities right away. >> i wouldn't right away but

it's going to give it to this market over here in the united states. it will be okay and of course this week we're waiting for the big jobs number on friday. >> we had a very strong auto sales report today. but we also had a fed governor saying this economy's not strong enough to get a rate increase this year. wait until next year. we're getting mixed signals, and the job's report could be part of that too? >> you're 100% right, all the time, consumer spending poor industrial production poor then you get your auto sales, great, you're right, we don't get anything really positive in one direction or another, and that hurts the market. that's why we're going to tread sideways for a while. >> i've been doing an informal poll of guys with you guys on the floor here. which way do you think the market breaks? eventually out of that range? up or down? >> i think down. i'm down. >> so you're holding steady right here. you're not taking any risk. >> not at all. >> that's opposite of what some guys are saying by the way.

it what's makes the market. going out on minus signs. tomorrow we get an adp job's report, that'll probably move the market and we'll get ready for the big number on friday as well. but right now, you don't have to wait for anything it's coming up next this is the second hour of "the closing bell." i'll see you tomorrow. thank you bill and welcome to "the closing bell." we were down significantly at one point there in the session. fought back at the start of the last hour but didn't quite get there, red arrows across the board. s&p dropping two points. dow giving up 29 and the nasdaq down six. join today's panel, we have the washington post, welcome back. our very own jon ford is with us as well with us for more on today's market action fast money trader steve, welcome one

and all. dan, i just want to the start with you because overnight, you put some numbers to a discussion we were having here yesterday, it is kind of unusual to see these markets so range-bound. is this a coiled spring waiting to move one way or the other? >> i don't know whether it's waiting to move one way or the other, but to color in the audience essentially we just took a look at the spread between the markets high and low going back to 1960 which is the starting point we like to use. and this has been among the narrowest ranges in terms of high and low over call it a three-month time frame. this has been called the fourth oar fifth traded in the last 50 60 years. >> wow. >> so if it feels like trading is slow and range bound, it's because trading is slow and range bound. >> and dan, i guess you would know that as much as anybody. i mean where is the flow coming from and where is it not? >> yeah i mean lan, people are still -- listen people are still trading, but it's picking spots around existing positions.

i don't want to characterize all the clients of course but the there is not a lot of active involvement in a general sense. stocks with stories positive and negative. there's movement underneath the headline but in the general sense, i don't know that people are pushing the needle too much in one direction or the other. >> that's a point. jon ford we have had a ton of deal-making, especially in tech. is this just a preview of more still to come do you think? >> i think so. i've been mulling this over of course, for the past few days. and i think something that brian, intel's ceo told us yesterday was key, he said i think there's a certain amount of this that's just going to occur in this industry, the industry's maturing and there's going to be emea occurring now for the near future. usually they don't get quite so blunt about saying our industry's maturing. basically we have to get creative looking for growth. if you look at broadcom, neither

have fallen off. intel, altera same thing, okay we've got to do this now. strategically important, but it stocks drop i think even more so you'll see opportunistic -- >> they go on sale. >> yeah taking out targets. >> elon meantime raised about the auto sales numbers today. it was a couple of years ago in the depths of the crisis and during the slow phase of the recovery when people thought we may not see numbers like that ever again and things have changed. >> you have to remember the age the average tech is something like over 12 years old now in the u.s. so that's one area and you know, quite frankly, it was really surprising to see such strong auto sales, we know the consumer was generally missing in the first quarter. i mean just yesterday, we saw the spending was flat we saw that auto sales was one of the biggest declines in durable sales in the month of april. so there's label the of mismatch here going on for the consumer.

i think that broadly what you're saying is there's greater uncertainty for the fed because of that. you've heard it now from a growing number of fed officials or boston fed, you heard it today from the fed governor that there's concern that the snapback is not going to be there and what does that mean for when rates are going to be rates? i've been on maternity leave for a considerable time six months. when i left the fed might move in march. and may not move in 2015. >> you can have taken another six months. >> i could have and wouldn't have missed anything. >> do you think she's right about that? >> i think she is right. if you charred them i use this as an example the other day with a client, john deere, disconnect from the real earnings tells a tale that it's all fed right now and this marketplace is relying completely on easy money, and as long as they keep their foot on the gas or at least don't take

it off at all, i think the market probably still moves in an indecisive waysideways, and we don't have any clarity either one. >> there's been one big factor that doesn't get enough attention, affects the markets, and it's the u.s. dollar overnight the yen broke to a new high or low, depending on how you're looking at it. on some better wage inflation data there, broadly speaking, we have seen a tightening already, right? stronger dollar. >> yeah, i think that's perfectly fair. i mean the dollar does serve to slow down the economy for all intensive purposes in this conversation. you look at the decline in exports in the first quarter, among the largest in the last call it 30 years, and that obviously was a big drag on the economy. the question is not whether you've already seen tightening it's whether the fed can follow that up by actually raising interest rates, however modest that first raise may be. i'm in the distinct minority on this front, the fact that the dollar has done what its done is the reason why the fed should follow it up and tighten. to be clear, most think moving

the dollar is why the feds should not tighten. i would just quickly -- please. >> why do you think that? they shouldn't raise once they should raise twice, is that because the economy is strong enough? >> think of this way as bad as the analogy may be if i'm waking up with a hangover then i better have had a good time the night before. the dollar should degree be treated as the hangover and the tightening as the quote, unquote, night before. >> to the extent of the stronger u.s. economy, then yes, the fed would say we need to tighten in light of improving economic data but again, you heard it from her today when she said she is looking for, you know, a moderation of deflation their pressures overseas before she would want to move. that's one of the factors she put out there that no other official has said. >> you know she's not drifting far from johnny. >> actually, remember she's a fed governor. she's not a fed president, they

often don't go out on a limb. she said they could raise, not that they would raise them but janet yellen said that too. she's not disagreeing with janet yellen, but as far as debate within the fed governor and fed board members go that's a pretty big deal. >> okay. >> john i'm just thinking through the impact of a stronger dollar for these acquisitions. a lot of u.s. companies have been leaving, right? or being bought by the singapore-based company. benefit from a lower tax rate. does the stronger dollar threaten or make them go the other way or tax benefit offset that? >> i think companies shop overseas more. so you see, you know israel's a nice place to shop if you're interested in secure tech semis, of course arm looking at a company over there, they're not u.s.-based they're u.k.-based, you see more of the overseas shopping. then the shopping might again become more domestic if we start to see individual moments of weakness with companies that

just aren't delivering the results that are expected but they've got important assets. >> that remind me how it's happened in oil and gas. nobody's really talking about opec this week oil, crude oil bounced a little bit today, do you think that we have to watch oil for the next move of the transports which, you know, we've been looking at in terms of weakness they're closing high was back in december. you know just trying to read through some of the activity there, doesn't quite feel like it. >> as we're in this conversation, there's a couple things going on as you just spoke about, we have opec on friday, greek deadline on friday jobs on friday today, the major turn around you saw in the energy names was oil holding the # $0 mark and you saw the whole complex move higher. i think it's a sigh of relief for people that are long and there's guys betting against it but it all comes back to one thing. dollar. and that's it. we spend so much time so many reasons not trade or to trade, it all hinges on dollar euro and excellent job at talking down the euro.

and i still think he's going to be able to continue that. ly tell you that on a chart, technically looks very challenged. it's going to be very hard for them to hold the levels. >> is that good or bad though steve, in terms of what that means for the market? traditionally, you would think that would be a good thing. which way does it go? >> if you look on a chart, this market has been able to climb right alongside with the dollar but i do think that if the dollar starts to come in it's probably coming in for the wrong reasons, it's an overall negative point. >> before we get out of the segment, let me add quickly, if i had told you ten months ago that the u.s. dollar was going to do exactly what its done move at a rate unseen more or less dating back to the beginning of the embassies in the 1970s, would you have believed that the s&p 500 would be at a record high -- >> no. >> universal, almost no. >> how important, steve is telling us it's paramount, are you saying it's not in a sense? >> listen there's a difference between the short term and the

long-term. steve and i and a lot of clients often look at the short term. for guys who are looking longer term, in theory stronger currency is demonstrative for domestic assets capital flow into your economy, all of which is the type of stuff that you would want. >> yeah, that's a point. and we could follow that positive correlation. appreciate it dan greenhouse and steve, stick around and catch steve and the rest of the crew coming up on "fast at five." one of the well-known names in energy said we could see changes in the oil space. who'll be targeted? auto sales having that blowout month in may? why are americans spending money on cars but little else. what that says about the economy straight ahead. then later on my jeweler, blue nile is going to brick and mortar. why he's making this move and whether this could be the new trend in retail. and fighting the bullies of wall street, sheila bair is here and she's trying to get kids to

change the culture of wall street by teaching them about the financial crisis. will it work? you're watching cnbc first in business worldwide. leave early go roam sleep in sleep out star gaze dream big wander more care less beat sunrise chase sunset do it all. on us. get your first month's payment plus five years wear and tear coverage.

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welcome back. we begin here with dominic chu and earnings alert.

>> good afternoon, kelly, shares of apparel and fashion company guess coming out be earnings per share of four cents with that be beats the average estimate of a loss of five cents per share. revenues however, a little bit light, $479 million. the estimates there for $484 million, other things of note here, current quarter earnings per share also light of blooet's expectations but full year guidance is better than expected, and they've also boosted that full year outlook. so again, some mixed reviews here with earnings, sales, and outlook, however on balance, shares right now the in the aftermarket up by close to a percent, 117,000 shares have changed hands after hours, back to you guys. >> thank you for now. auto sales are soaring. in fact with the new data out this afternoon, we are now on pace to have the second best year ever for auto sales in this country, with the latest economic numbers are showing they're not buying much else. what is it about the new car smell that's getting people to part with their cash?

joining us now, the car coach with the panel, hey lauren good to see you. it suggests there that people are trying to part with their cash to buy these cars i'm interested in how much you think this is tied back to easy credit. >> well, sure. the interest rates are very enticing and of course there's longer term loans pop people are taking advantage of this great offers that are out there, great new products i mean audi has a new lineup i mean you're looking at the premium brands and they have incentives, good interest rates, and who wouldn't want to take advantage of that? >> understood. i want to show i mentioned a little while ago on the show that flipping through one of the auto trader magazines at the diner and being shocked at page after page at the kinds of offers you're seeing as we can put on the screen there, no credit checks 100% everyone approved, bad credit no problem, credit repair specialist in the top as you can see there, they talk about your financing being guaranteed and so forth. lauren, how different is this

environment today for people trying to buy a car. how much do you think that's contributing to the sales figures that we're seeing? >> besides the fact that it's easier to get credit. i'm sure right after the recession we all knew that getting credit was almost impossible for people. unless you had really high credit ratings, but now we're back to where we started from in a way that we have easier credit to get, interest rates are low. there's a lot of things with leasing that's also great incentives. the cars are so much better new technology, better safety new design, people want these cars and so when they're buying these cars they're getting great residual values which means you're getting more for your money, like the german lineup is just selling like crazy. i was just test driving the new audis, and they're great product, because of that people want to buy them. they want that type of product to drive that makes them safer on the road. >> do you think it's a good thing that we're back to where we started in terms of ease of

credit for new cars or is there some concern that there could be a subprime lending problem within the auto space and that's what's driving up the numbers? unstable loans? >> right. i agree with you. this could lead to a problem where we started from with this situation where people get loans, they think they can afford it, they end up over their heads without jobs. i mean this could present a problem, bring us right back to where we started from. from an economic standpoint, we don't want to go back to where we came from and of course every bank and every manufacturer and every dealership wants to sell products. this is our things that need to be considered. >> and i wonder, how much of this might be people have been saving up money, maybe they are hoping to buy a home but my goodness, so little inventory, what's out there is so expensive and boy, after that winter we need a new car, why don't we just go ahead? >> well unfortunately, i think there will be some people that are doing that the housing market, of course is not my specialty. but you know sometimes it is expensive to get a home when you

look at all the expenses that are involved and purchasing a home when you could have a brand new car, drive to work sometimes that's a second choice. it is your second most expensive investment, and people tend to say hey, who wouldn't want to drive the cars you're showing here porsches and bentley's, and audis, their a great product and everybody's putting out good product. sometimes it's a better choice. >> are those the cars that are selling? high end cars are you see the work house cars, used cars, be strong in terms of sales? >> premium car sales are up for sure. if you look at the numbers. like i said i was just references audi but sales are record ever best month ever since they brought their cars to the u.s. you're looking at the same thing, infinity sales are up fca, which is fiat they're up, they have new product, but they were down for so long because they didn't have new product. and people are saying you know what, i could use a truck, truck

and suv sales are strong and they're going to be strong until gas prices change. >> pull the trigger, kelly, just browsing at the diner when you're going through auto trader. >> porsche has your name on that. >> my heart is a 1989 toyota land cruiser. i didn't find one in there, but i know the credit's available, thanks lauren appreciate it. breaking news on the freida john harwood, what can you tell us? >> the u.s. senate just ended a two-day national security drama over the surveillance powers over the federal government by passing the usa freedom act. this passed the house previously with a large majority. it shifts the way in which data on americans phone records is preserved and the ability of the national curt officials to access that data. it had been stored as was revealed by edward snowden, by the national security agency all of the phone records, though not with the names of the individuals involved now that information is going to reside with the phone companies natural

security officials can go get it, but they've got to have a reason for going and getting it. this is a reform that many civil liberties advocates pushed for, the white house is fine with this bill they've indicated the president will sign it. even though it's not ideal from the white house point of view mitch mcconnell the republican leader tried to change it those amendment attempts failed today. senators now increasingly want to put this behind them and rand paul by forcing this debate over a couple of days passed the expiration point for some national security surveillance powers has achieved a heightened level of attention for his presidential campaign whether that ultimately benefits here in the bid for the republican presidential nomination is still unclear, however. >> and john that does leave a lot of responsibility with the phone companies now, doesn't it? >> it does. and it's more unwieldy. the officials will have to go to multiple phone companies to try

to get records that under the earlier program, they possessed already, it also ought to be said that there are no documented abuses of civil liberties from the old program, nevertheless, there was a considerable push, especially on the democratic side to change it. and that results in the bill that is now going to the president's desk. >> all right john thank you so much. john harwood in washington. we're going out to dom chu here for an earnings alert, hi dom. >> this time on amberella, they make chips that go into digital cameras, wearable cameras they are a gogh fro supplier. shares up by a half a percent. they come out with earnings of 71 cents per share. estimate of 59 cents, shares worth of revenues being estimates of 67 cents per share. what's interesting, we talk about this idea they are a supplier for gopro. shares have been staging quite a bit of a rally over the last few months, also very low levels. this. again, after hitting, you know,

near $100 a share at one point during its post-ipo life. interesting comments coming from wang, who's the ceo saying in addition to continued growth from our existing wearable ip security and automotive video reporter cameras, we see increased activity across a wide range of home monitoring cameras including models by u.s. service providers, as quad continuers or flying cameras, we look forward to continued success as we enable the next generation of intelligent hd and ultra hd cameras. sop making specific reference to drone-type cameras is also a gross part of the market. interesting here a component-maker for gopro and the other wearable type cams, a back over to you, kelly. >> thanks very much. john just looking here you know they are only up half a percent after hours despite a healthy beat. this is a company with a three billion market cap on 71 billion in quarterly sales. healthy premium. >> very healthy premium. important technology for this

kind of internet of things marketplace we're looking at drone companies, looking to go public gopro is going into that arena as well. that is bullish for a company like ambarella. look at the stocks that i track, tech stocks more than 60 of them. over three months gopro is up the most at 46%. see yeah people got too excited, then it sold off, and it's coming back strong. and obviously as you mention, its market cap is doing quite well. >> and another excuse to say quad continuers we don't want to pass that out. stress and long hours are guaranteed when you work in finance or tech job satisfaction is so much higher in silicon valley though why is that the case versus wall street? we're going to talk about that next. also senator elizabeth warren blasting fcc chair mary joe white for not enforcing the dodd frank financial reform law, even calling her leadership extremely disappointing. coming up, reaction to those comments from former chair, sheila bair, we're back in a moment.

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for the millions of americans suffering from ringing in their ears, there's no such thing as quiet time. but you can quiet the ringing with lipo-flavonoid, the number-one doctor-recommended brand. relieve the ringing with lipo-flavonoid. welcome back earnings alert, dominic chu, hi dom. >> this time g3 apparel group. this is behind calvin klein, kenneth cole jones new york i can go on and on the shares are up about five and a third percent. earnings per share of 15 cents with that be beats the estimate

of seventh cents per share. sales $433 million versus $406 million for the average estimate. both beats there. they also raised their full year earnings and revenue guidance above analyst expectations consensus estimates. so on-balance is what you have against shares up by over 5%. relatively light, about 44,000 shares traded still on the apparel side of things interesting for a company that has a lot of fashion brands back over to you. >> dom, thank you very much. moving on to today's new york times andrew pinning an article enentitled reflections on stress and long hours on wall street. first analysts endure a wall street firms on the flipside many silicon valley jobs are higher stressful, but we hear fewer complaints. here sam and chad who specializes in recruiting for the financial markets. welcome to you both. sam, is there a fundamentally

different culture, a reason why we hear much more about stress and difficulty on wall street, but not silicon valley? >> i think there is. i think the culture on wall street is about individual performance. each person out for themselves, the perception at least, we have folks at rivera from wall street, and that's what they tell us. you know every person for themselves, in the valley it's a lot more about the safety net that's there for everyone who's out there to produce to innovate, to do something new, but if something happens, you have people who have a support system from all over the world. who are here out trying to strive for the same thing. >> yeah chad we raise the issue because obviously you're get ing getting the finance and the workload. in a lot of cases, you're in silicon valley as well. why do you think it is that this culture seems to be so much more taxiing and draining? >> well kelly, first of all, thank you for having me. i would have to disagree that it's anymore taxiing on wall street than it is on, in silicon

valley. they work additionally hard and long hours, and on wall street you are, everybody knows when you're coming into it that you're going to be working long and hard hours, but if you're really into what you're doing and you have a passion for what you're doing, then it doesn't seem like work. >> jon ford do you want to weigh in here? you know about both. >> i disagree with the premise. in silicon valley the people bearing the brunt are the kids high school kids in palo alto teenagers stepping in front of trains committing suicide, they're trying to figure out how to get the stress off of the kids, i think also in silicon valley, if you've got the tech skills to be working there, especially hard, there is a bit of an escape valve. there are other places to go move to portland take a job that doesn't pay quite as much but slower pace you know go look for something in seattle. move out to the midwest and work for a different kind of company that needs i.t. help. i don't think you feel

necessarily as trapped as you do, if you're on wall street and that's your track, elsewhere do you go from there? >> i was going to suggest, maybe it's the perks of working at the complexes they have out west but jon raises a good point, there are a lot of young cases of kids being exploited that we don't hear as much about. >> i wonder how much millennials will have to sort of change the conversation how much the companies will have to alter cull dhurs in order to keep more millennials. the one that i think looked if for most of all is flexibility. they want to have that work life balance. they're going too go to companies to provide that. >> sam, do you think that wall street's going to have to learn something here from silicon valley or no are they both ultimately putting too much pressure on their younger workers? >> i think they already are. we do some work with wall street firms, and some are adopting this culture where you walk into them you have no idea whether they're in the lower east side or in san francisco. and so those cultures starting to be more pervasive, they're able to attract some people from

the west coast to work there. however when it comes down to moving your family picking up and moving back to the east coast or to the east coast if if you've never been there, that's difficult. so if these firms can find a way to be bi-coastal they're going to attract more talent and the culture will eventually merge. >> chad at the same time are we risking dampening the engines of innovation and ways for people to improve their standards of living in this country namely through finance and technology by trying to ensure that nobody's hurt in the process? >> well kelly, no people know what they're getting into or else they wouldn't be chasing the prestige and the money that goes along with working on wall street. people understand that they're going to have to work hard hours, they understand that they are going to have to commit a significant part of their young lives to wall street and to the firm that they're working for, but i disagree as far as mobility. once you come out of a good

school, and you work for a prestigious firm for a couple of years, the door's open up on the private equity side the buy side, hedge funds. once you get that big-name bank or that big-name asset manager on your resume the doors open up a lot for you from coast to coast. >> yeah and people are kind of eager to break out of that as well. guys, thank you both appreciate it. sam and chad this hour. time now for a cnbc news update. sue herrara, what's happening? >> hi kelly, here is what's happening this hour. the senate passed the reform bill without amendments. it'll end spy agencies bulk collections of american's telephone data. the legislation now goes to president obama for his expected signature. a man under surveillance by the fbi and the joint terrorism task force was shot and killed in boston after police and an fbi agent fired at the suspect. according to police he was wielding a military-style knife, and went after an officer. nfl commissioner roger goodell sending a letter to the

league's player's association explaining his decision not to recuse himself from new england quarterback tom brady's appeal. goodell suspended brady for four games for deflating footballs. president obama awarding posthumous medals. they were dogged by concerns over discrimination. the recipients were for saving comrades on french battlefields some 97 years ago. a very emotional ceremony for the families involved in that. and that's your cnbc news update kelly, back to you. >> certainly, thank you so much. in recent years, brick and more or it have been racing to build a presence. now blue nile is doing the reverse. opening its first ever store in new york. the ceo discusses this move in a first on cnbc interview straight ahead. and he's the second to win the daytona 500, how does joey

logano think nascar can rev up the declining popularity, he'll fwhag later on "the closing bell."

amazon introducing free ships on thousands much popular

products and you don't need to be a prime member to get it. morgan brennan has the details. >> this is the life program, it'll apply to all customers, ian those that aren't enrolled in amazon prime. under the program, items that weigh up to eight ounces fit in a small box and are typically priced under $10 will now qualify for free shipping including non-prime members and no minimum order amount. a shift from the $35 requirement that has been in place. and delivery will take about four to eight business days. items will be shipped from a hub in kentucky and the company terms me from there, thousand of products from hundreds of third party sellers that are already available. amazon started testing this concept about 13 weeks ago, and the idea is to target a wire full of consumers, cost-conscious shoppers. and news comes less than a week after the e commerce giant also announced free same-day delivery for prime members in 14 metro areas and as other companies

including walmart ramp up their initiatives within the space. looking at shares of amazon they are trading about flat and after hours, back to you. >> thank you, morgan. in the first quarter, they accounted for $80 billion or 7% of total retail sales. that's 14% increase from last year and yet, online retailers are moving towards the traditional brick & mortar model. opening its first store at the roosevelt field mall. and this at the same time when some say the ageing of the shopping mall is dying. what is behind this strategy? joining us in a first on cnbc interview with a couple of sparkling rims as well is harvey cantor, welcome to post nine. >> great to be here. thanks for the opportunity. >> i thought they were dying and everything's going online why are you doing the reverse? >> it's about creating a richer experience. he has created an compelling online experience, but millennials to want buy the way they want to buy pc phone,

tablet, now a showroom as it may be. >> why long island in particular? >> we've had a concept in the shops of nordstrom's for about a year they worked phenomenally well. one was at the field. so, with the success we've had there, we're extending to a fee-standing location. people may or may not want to now buy, this one is a colin crow collection ring as i understand off mo'nique next to and one of your collection. can i walk into the store, pick one of these out and walk home with it? >> no actually you can walk in sit down and have a consult at a timive experience with a sales associates. we have 400 styles the core of our mix in that store, and for lack of a better way, it's like the apple store, you'll go down and sit at a table. we have a large ipad and we'll walk you through the diamond selection process. and in some cases, we can deliver to your door overnight.

>> i get, i'm married and the experience of shopping for that engagement is exciting and traumatic for a number of bachelors. you want to see the ring you want to see the diamond up close if you can, but how many of these stores do you need? because i mean long island wonderful place, but everybody in the country can't go there. do you think about strategically placing these throughout the country as you clearly expect it to succeed? >> obviously we expect the store to work that's why we're testing and extending it. how many we need will be depended on the level of experience. no question, we're bringing the value from offline, online to the offline environment. that experience will be really what tells the reality of how many stores we open. pardon me we have breaking news. in the meantime you have to get back out to long island, thank you for being here. one step further, appreciate it. as mentioned, we have breaking news on fifa what can you tell us? >> yeah kelly, that's right, earlier today, we saw the bomb

shell news that the president was resigning, calling for a special election of fifa officials to replace him. some undetermined point in the future. now the new york times has more detail on that. the times reporting just in the past couple of minutes here that mr. blatte himself was under investigation, citing several unnamed united states officials, the new york times said no those officials had hoped to build a case against mr. blatter himself by getting the fifa officials to flip and turn over evidence about blatter's involvement potentially in construction and fifa and around the world. one of the important mysteries in the arrest and indictments we saw was why blatter's name was not included now we're learning that officials in the united states had hoped to make a case against blatter by getting the lower levels to turn over on him, kelly. >> thank you so much. >> jon. >> the amazing thing to me i

don't know if you saw in that 13-minute monologue that john oliver had where he called out blatter and said we needed him investigated and to somehow get him out of office. and john oliver just tweeted minutes ago, champagne. about this i mean clearly a lot of this was in the works before that monologue, but people are pointing to that and saying nobody was calling out this corruption. >> his is an extraordinary case about using the platform and most activist way we've yet seen in traditional media. it's happened a number of times, even going back to net neutrality, it's a great point. sheila bair is taking on bullying. life lessons in a book targeted at young adults. she'll plain that next. nascar the one-time hotline sport is watching ratings decline. we'll find out from the winner of the daytona 500, joey logano

coming up. ♪

financial crisis is important part of our not too distant history. to teens and young adults, may seem as real as the best-selling hunger games books she said. former chair sheila bair is looking to change that with her own young adult book, "the

bullies of wall street." good to see you again. you really think, i've got the choice between, you know, vampire book and the hunger games and all that been i'm going to pick the bullies of wall street off the shelf? >> it's hard to sell non-fiction books to teens. i decided to make the effort. that's one of the reason why is i start each chapter with a story about how children were impacted. fiction namized stories, but based on true events. i interviewed a lot of families. >> this is terrifying, a lot tells young people about how much it is placed on them in terms of debt in this country and that sort of thing. >> it is it's a big overhang from the crisis. the job market is tough for young people. we're seeing still rising levels of student debt and of course the fiscal situation, a huge still, beginning to run deficits and the national downs, and the medicare and medicaid trust funds will be running out of money and that's something else that workers are going to have to help make up for. so yeah i think we need to change course and i'm hoping

the future generations will educate themselves and be informed citizens when they become adults. >> people are trying to talk to teenagers, young people about heavy financial matters, the financial crisis what inspired you to take this on and to take this format? you could have done fiction, a video game you give this book why? >> i want the original title of the book was you can do better. and i think they can. i think my generation, the baby boomer generation which has been in the leadership positions for several years now, i don't think we've been good stewards of the economy. i think we have an obligation to try to fix this. we're still working on that but i want to make sure future generations don't make the same mistakes we did. we were short sided, wall street was short sided, government was short sides, borrowers were short sided. notwithstanding the title, bullying do need to be held at task, there's flippers fannie and freddie, regulatory environment, everybody has a piece of this crisis. and need to own up to it. if we don't own up to it woob

we're not beginning et anywhere -- we're not going to get anywhere. >> we're just at the beginning. here's a listen again of what martin o'malley had to say about wall street just over this past weekend. >> i've got news for the bullies of wall street the presidency is not a crown to be passed back and forth by you between two royal families. >> now where have i heard that will phrase before? so sheila -- >> i want credit. >> yeah there needs to be more of a crackdown on wall street. are you making a fundamentally political point here -- >> no completely non-political book. i realize it's an educational book. it has very basic information about mortgage originations loan workouts of all the very fundamental economic lessons i think that need to be understood and learned. that's really i hope it's a prince yal, i hope it'll be in school libraries 20 years from

now. that's why i wrote it. this is a big issue on the campaign trail, and it's good to some extent not from the book but just i want him at least talking about this. i want to know where they are on financial reform. i think that is important. >> senator warren has raised concerns about the regulation powers of the fcc and the job that mary joe white is doing? do you have thoughts on that and where do you fall? >> well that's a tough one, you know, i think the fcc has a lot of challenges. i think as an institution, it is almost, it's it's difficult institution to manage, shall we say. there have been a lot of moral issues there. they have a huge portfolio of matters, and i do think having worked with the fcc for many years, back when i worked at the new york stock exchange a long time, this is true of all regulators, there is a territoriality in fact mindset of the agency and too much frequently they focus on institution instead of getting the job done. nothing to do with mary joe

white. getting them refocussed on the public good in terms of having transparent, stable financial markets, security markets, i think it's really a high priority. but its been difficult. it was difficult priority. it is very difficult. getting that agency back on track. i think it is sad because it was once a very great agency. >> we'll pass the book around to see if it gets things moves. apple is pushing back into the streaming music service game. is it enough to top have cnbc.com hot list? but to get from the old way to the new you'll need the right it infrastructure. from a partner who knows how to make your enterprise more agile, borderless and secure. hp helps business move on all the possibilities of today. and stay ready for everything that is still to come.

it is a blast from the past 1970s style on today's hot list. >> yes, 1979 cult classic, the warriors, and the market have a lot of congressmen. they need to beat a hasty retreat. and finally, apple jumping into the music streaming business. we have reports that will be announced next week. that is taking on spotify and

pandora. those are my big three for you, kelly. thank you, nascar was once one of the most popular past times but attendance has fallen. joey logano is here at the new york stock exchange. "closing bell" is back in two. we decided to give ourselves stickers for each feature we release. we read about 10,000 suggestions a week to create features that as traders we'd want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. who reads all those? he does. for all the confidence you need. td ameritrade. you got this.

working a bit crew is not easy. it was the coca-cola 600. i fsz thiswas there in person but nascar has trouble getting fans to buy tickets. welcome to post nine. >> thank you, how are you doing? >> thank you. we showed you in a tease, and some viewers asked if you were old enough to drive. you were one of the youngest drivers to win a sprint cup race. what is your experience been with the support?

there have been some changing in regulations -- >> our sport is always evolving. attendance is something we're always trying to improve. we're trying to involve that more into our support. nascar is doing great with that. it is constant meetings with drivers and team owners coming up with a great game plan. we still have a great product and race on the racetrack. tv ratings are going well just trying to get people back in the seats to watch us in person. when you see them go by at 200 miles per hour -- >> it is unbelievably fast. it just goes whish -- >> one thing that continues to happen is the pit times are down to 10, 11 12 seconds from 16

and 20. are we sacrificing safety at all because of adaptations that improve the speeds coyou feel comfortable? >> as competitors we push everything to the edge. if we can make a faster pit stop by having less lug nuts on the wheel, we'll find the limit of how many we can put on and feel safe. you know when a wheel is loose, you know when a wheel is about to fall off. there is some self policing in that way. >> joey how do you look at tools like social media, twitter, facebook as a way to connect with fans. you're like the mark zuckerberg of racing. winning at 18 do you use the tools in a different way? do you think the other drivers in nascar are open to that? >> i think a lot of drivers are on twitter, instagram, facebook

snap chat. social media really blew up in the last few years. as a celebrity or race car driver you're able to communicate with your fans about what is going on with your race team. your personal life and it keeps you in tune. >> good luck at pocono. you have a big race this weekend. >> i also want to tell you about the new shell v power nitro gasoline coming out. >> let's toss it out to fast money and the gang. >> fast money starts right now live from the nasdaq markets overlooking new york traders square. tonight on "fast." ifact verse ifiction. we are separating fact from fission on all things apple. plus one of the most respected names in the oil marks as we could soon