struggling. keep an ifreye on silver car. >> thank you. tonight on "fast money" at 5:00 dan niles, the three tech stocks you should be buying right now. >> thank you. thank you for watching everybody. "closing bell" starts right now. welcome to "the closing bell," i'm kelly evans at the new york stock exchange. >> it's scott walker in for bill griffith. here what's happening. oil is down. transports fighting back. new developments in the greek bailout drama. we'll break down what it could all mean for the broader market. >> and taking on mark zuckerberg. we have a facebook shareholder not happy with the ceo, even though the stock has been an outperformer. >> competition for gopro. citigroup out with a new note saying gopro may not catch on with the mainstream audience. we've got the ceo of a company

that could make things harder for gopro. 360 fly will join us live coming up. >> here is where we stand in the markets. an hour to go in the session. it was volatile early on. dow up 55 points. continuing to add on top of yesterday's strong gains. s&p adding about five points. nasdaq up seven on the day where interest rates moved back a little bit lower. joining our closing bell strange we have david kelly from jpmorgan heather hughes and rick santelli. rick, let me start with you this. move in interest rates. a pause today, but all the focus back and forth is about investors. what are they going to do? is everybody going to move out of fixed income pile into the stock market? is the upward trend going to resume? >> i don't believe in the great rotation. flows don't wear it out.

i think i would take that off the table. in terms of will it continue? i think it will but nothing goes in a straight line. remember we are basically churning through june. we are not quite halfway there. it's the last month of the second quarter. gdp upgraded from 1.1% to 1.3 -- 1.3% to 1.9%, sorry, that's a nice raise. gdp is too strong for zero interest rate policies. keep it simple. settle at 3.11 in 30s friday. i would use the longest end to be a pivot. some of the bigger data points are out. if we settle under 3.41 tomorrow we could ease back further. it doesn't mean the macromove of higher interest rates.

treasury market had the feel of higher rates for eight weeks. i think that will remain. >> what's it make of 300 points for the dow over the last couple of days? a couple of days ago, everybody is talking about is the correction coming closer? >> i think what it points to is more economic optimism. those are good retail sales numbers this morning. the upward revision suggests about 3% real gdp growth. the first quarter will get revised up to zero. there is a pick-up in momentum. we had other good numbers. what this really shows is yes, stock prices and interest rates can go up if the reason is increased economic optimism. that's what i think we've got here. >> what about that retail sales report? it was strong. core retail sales gauge up 0.7% on the month. the u.s. consumer is the one everybody has been waiting to

fall in line. i'm surprised bond yields didn't keep moving up and people haven't speculated more when the fed will raise rates. >> exactly. the retail sales data this morning was reassuring. on the back of oil is finally trickling over into the consumer area. i wonder is this time different? we look back in september when yields were at 2.5%. yes, we pulled back from 2.5% on the 10%, but just eight months ago we were near this level. then the markets dropped dramatically 1,200 points right? that was maybe a fed-induced rally. look at may 2013. we also had the same type of taper tantrum occur in the markets. is it based on fundamentals finally because of jobs and inflation and retail sales picking up? as well as trade data and housing data? or is it on the backs of still a fed-induced rate rise that we

are not seeing today. i would say there is some fundamental background behind that. >> i think kelly asked an interesting question. if there was a day where you thought we may go over 2.50 on the yield on the 10-year, today could have been hit. are you as surprised as kelly and i are about rates actually falling on what's perceived to be better retail news? and what that all means? why that actually happened today? >> i was a little bit surprised. totally objective, even the nonseasonably adjusted retail sales figures were strong. i think the answer lies in looking at the way bunds and 10 years and 30 years traded hours before the number came out. they were already making moves from higher to lower rates. it means the fixed income

markets were marching to a different drummer before the data. the data didn't have enough horsepower from the mid 2.40s to pick it up. if it had gone over 2.50 it would have had the margin trade kick in. >> rick gets to the heart of what we brare about to talk about here. there were new developments on greece's efforts to stave off a debt default. >> michelle caruso-cabrera has the latest details. >> yesterday there was this great hope of a greek debt deal. today those hopes were dashed after the international monetary fund walked out saying talks are going nowhere. greeks have to come back to the table when they are willing to make changes. this comes despite a late-night meeting between the greek prime minister and angela merkel and the french president last night. it led to nothing except a commitment to intensify the

talks. emit with the european commission and no deal. greeks need the last 7 billion euros in their current bailout program by june 30th to pay back the imf. any deal to get greece the cash is going to have to be approved by various european parliaments. this week is critical to make sure there was enough time for the required process. lenders want the greek government to force people to retire later that. would lower pension costs. the changes suggested aren't strict enough if greeks don't get a deal by june 30th they will not meet their obligations? that means a likely default on the imf loan and won't be able to pay workers or pensioners. ecb could cut off credit to the greek banks. that would be devastating to the country and economy. that would raise everything to a whole new level.

>> i have someone tweeting when is the last time we did not talk about greece in the summer? my question before the saw the tweet was does the market care about what happens? >> i think the markets will care in a few weeks. i think this june 30th dlan is more important than the other ones. the greeks need to get the grumpy creditors to give them the $7.5 billion. this could get messy in july. i think greeks are overplaying their hands. ultimately greeks will leave the euro and banks will default. europe will get through it. the long game is europe can survive without greece and greece needs europe more. >> what do people do with the 10-year. we have this last plank falling in? the retails sales report this

morning, other things you could throw in there to paint a better picture for the economy going forward, that would be an obvious trade. what is an investor to do? >> an investor should look carefully what happens next with the fed. they have to upgrade all over the place on the statement. then janet yellen will have to do a press conference. she's got to say there is evidence of a bounceback in the economy. there is clear evidence by every measure on her dashboard of a tightening labor market. she will set the stage for the first tightening in september. people will price in two tightenings this year. rising stock prices and rising interest rates are possible in an improving economy. still be overweight equities relative fixed income. get prepared for bumpiness

around the fed and greece. >> how about this thought you are starting to hear from very big and smart investors, one after another warning about liquidity issues in the bond market. rick, you spoke with biedermann earlier today. we spoke with scott mather of pimco. carl icahn talked about it before. is it being exaggerated or should we be concerned about what's happening? >> i heard scott. he had a phrase like the market will make an adjustment in and price it in. that's what we are worried about. there is no exaggeration here. look at the issuance of corporates alone. imagine a giant reservoir that represents all fixed income securities. this reservoir is much bigger now than it was years ago. the plumbing to get that water

out is much smaller. we'll have more pressure coming out of the plumbing. i don't think it's anything debatable. the only thing is how outsize will it be and when and how many times will it occur? >> at the end of the day, in our industry at least, 20% of bonds are held by mutual funds. the mutual fund industry. those are daily licked trading vehicles, but not as licked as we would need them to be if there is a mass exit. people are going to sell whatever they can sell. where's the most licked markets? where do they exist? of course in the equity markets or the stock markets. maybe that is a concern for rising rates in the bond yields and liquidity there. >> michelle? >> i would add when you look at the sharp -- we talked many times. wow. interest rates aren't high but they are much higher than where they were a few weeks ago. when you look at the underlying volume in the german bunds and treasuries, it's not that high.

suggesting that because there is so little liquidity, smaller trades can now have very big impacts on pricing. that will be startling to investors who have been in bonds and lead to negative returns. >> michelle thank you for joining us. thanks to you guys, as well. >> we have about 45 minutes to go in the session. stocks are holding on to gains here. moving higher in the last few minutes. rupert murdoch preparing to step down as ceo from 21st century fox. david faber broke that story earlier today. he is going to join us on set with a top analyst to talk about what this means for the media giant's future and the stock. facebook shareholder sounds off why she is angry with mark zuckerberg. she'll be here to explain why.

when a moment spontaneously turns romantic why pause to take a pill? and why stop what you're doing to find a bathroom? with cialis for daily use, you don't have to plan around either. it's the only daily tablet approved to treat erectile dysfunction so you can be ready anytime the moment is right. plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. do not drink alcohol in excess. side effects may include headache, upset stomach,

delayed backache or muscle ache. to avoid long-term injury, get medical help right away for an erection lasting more than four hours. if you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. why pause the moment? ask your doctor about cialis for daily use. for a free 30-tablet trial go to cialis.com

there is a biotech name

making a huge splash in its first day of trading. bob pisani is tracking the action. >> axovant almost 100% gain. sold product of drug for alzheimer's. $315 million raised. that would be the biggest ipo, biotech ipo ever. that's only part of the story. the ceo purchased this drug for $5 million from glaxo. right now, the market cap is $1.5 billion. i at this point the market cap is $2.8 billion. this maybe one of the great investment all time if this is actually going to go through all the way. by the way, he is going to be on with jim cramer "mad money"

tonight. lit's ask him about alzheimer's drugs here. >> nearly $3 billion in market cap is not bad. facebook shareholders gathering in santa clara. the way facebook is structured investors who own class b have 10 votes per share. those class a only get one vote per share. >> they control about 74% of the voting power. that elite group includes ceo mark zuckerberg, facebook co-founder and one investor. >> the woman behind the proposal is julie goodridge. clients owning more than 51,000 shares of facebook. welcome to the program. >> thank you. >> you pushed for this before.

do you think facebook over time needs to move to a one share, one vote rule? what happens if they don't? >> what happens if they don't is perhaps what has happened throughout history. the people who are the inside horse control the majority of the votes in this case in fact control 75% of the votes, can start making decisions that aren't necessarily in the best interest of the majority of shareholders. in this case what is really interesting is that class a shareholders, the people who buy on the open market every day your average mutual fund those guys we all have about 75% of the 2.5 billion shares outstanding, but we only have 25% of the say in any vote at all. if we want to switch up the board of directors, if we've got

a problem with the auditors we have virtually no say unless mark zuckerberg decides to vote with us. >> nice to see you again. would this force you or cause to you sell the stock, if you eventually didn't get facebook to see the way you see things? >> look. the chances facebook is going to see the way we see things is very, very small, okay? i'm going to sell the stock if the stock starts looking bad and if it looks like the insiders are making very bad business decisions. we are up 137% where we bought it. if you are saying i'm angry at mark zuckerberg it's not exactly what's going on. >> did we say that? >> you did. >> there are plenty of mature

media companies that retain this structure. activist investors. start-ups argue they want to be given protection in their fast-growing stages to do so without being forced to pare back. and to go into the point of media, other companies have done this and retained the structure for many years. >> i have a great idea. it's an old fashioned idea. if zuckerberg and the other insiders wanted to have majority control over the company, they should have held on to a majority of the shares. i don't think it's ethical to have it both ways. what we've got is a guy who owns 17% of the outstanding shares but controls 54% of the vote. that's obviously great for him. quite truthfully it makes it look like what is probably true.

facebook going public was just a liquidity matter. it was a way to make all the insiders phenomenally wealthy overnight. that's evidence when you look at what happened immediately after facebook went public when they sold 4 billion shares. if i'm the owner of the company and i care a lot about maintaining control, i would hang on to my shares. >> would you buy stock in a company again that had a similar structure? >> well coincidentally, we own shares of google. >> i know. i'm talking about xyz company down the road. >> yeah. i think we might do that. the issue is whether or not we think the underlying company has value for our clients. that's what we really care about. and whether or not it's so compelling as a company that we can't avoid owning shares of

this, of the company. to go back i wonder how this happened in our world. i wonder maybe it's the underlying, the people who brought the company public. what i'm concerned about is what are the rules that make it possible for this sort of unequal advantage. >> do you only own shares of companies that have a one vote be/one share structure? >> no. we also own shares of google. we just presented this same resolution about ten days ago at google. we got 8.4% of the overall vote at the company, which represented 84% in favor of our resolution of the noninsiders. >> i asked you this last time. twitter is blowing up with people saying if she doesn't like it. >> did she buy the stock in the first place? >> i like the stock.

why you buy a stock is a little is fairly complex, as any of you are many twitter followers should know. so you buy it for a variety of reasons. facebook is a really interesting story. they are taking over the world in a lot of ways the same way google is taking over the world. that doesn't mean we shouldn't have a right to come back in and question what's going on. the board itself is filled with white people. is that a great thing? this is a company that as a global audience i don't know that's such a great idea. i don't know how long that can last. as a shareholder because i only have 25% of the vote i'm never going to have an impact there and that's a problem. >> julie, thanks for being here. appreciate your perspective. >> we have about 35 minutes to go before the closing bell rings. good back up to yesterday's gain on the street of more than 200

points. today up about 58. it's not the best level of the day. nonetheless, good follow through. >> nice gains by unitedhealth by boeing. watch out gopro. there is a new kid on the block. the head of 360 fly talks up his panoramic camera. hey, what are you doing? you said you were going to find out about plenti, the new rewards program. i did. in fact, i'm earning plenti points right now. but you're not doing anything right now. lily? he's right. sign up, and you could earn plenti points just for being a wireless customer. in the meantime, i just kick back and watch the points roll in. where did you get those noodles? at&t cafeteria. you mean the break room... at&t - the only wireless carrier to be a part of plenti now when you add a new phone line to your wireless plan you get 5,000 plenti points to use in lots of places.

you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.

welcome back. gopro shares struggling today. the camera maker popular with

sports fan has taken a hit after citi reports fewer people are planning to buy gopro cameras in pt next 12 months. >> now a gopro competitor is getting ready to enter the fray. 360 fly shoots 360 degree video. joining us exclusively in today's edition of "the spark" is pete err attertan. >> you don't look like you are in pittsburgh. >> i'm in orange county and i'm also from australia so i reside here because it's a beautiful place to live. >> 360 fly does something super interesting. do you this 360 degree video shooting with your cameras. what did you think of gopro's announcement when it tried to do the same thing but in a little bit clunkier fashion? >> i think the segments are

different. gopro is going after a high-end user. there are 16 cameras they stitched together and have taken extremely expensive software to do that together. hour strategy is simple. we create a 360 camera that allows the user to create their own virtual reality experience in a matter of minutes. it's like a share from when you shoot the shot through to sharing it on your smart phone. we are focused around the smart phone and allowing users to edit and share their video footage. one of the frustrating things i found with gopro, it was a lonely experience. i got bored with it. then i found the 360 fly camera and fell in love with the concept and loved the idea to shoot and capture my friends and myself, but then share that in a matter of minutes using my smart phone to a bunch of different social segments.

we are creating an add society with social networking. people aren't watching two to three minutes of video. they are capturing 30 seconds and sharing that on instagram. when i see a video playing with five or six minutes, i fast forward and end there. our strategy about sharing it and allowing people to capture and share it quickly will be something that sets us apart from gopro. are you trying to compete directly with gopro? it sounds like you made the case why you are in a completely different segment. you think they are high end, in your words, and maybe you're not trying to be that. >> in the 360 world, they are absolutely high end. i would like to consider ourselves kind of like the action cams that people did a great job demonstrating that to the market. i think there's been a lack of innovation. what we are doing is innovating

that space allowing people to capture what's around them and up and down beside them. i think it's an immersive experience. i think gopro strategy seems to be chase the chinese manufacturers to the bottom. i don't know whether that is necessarily the strategy i would employ. i would like to see ourselves as the innovators in this space. i don't think it's had a lot of innovation. what we are doing with 360 video and doing with virtual reality. that will be another part of ours. pressing one button on our smart phone turns your video into a virtual reality. your smart phone or $4 pair of goggles, you've got an incredible experience. >> tell us how much it costs and hold that device up one more time. that looks like the size of an apple watch. >> it's very small. it's $399. the app is obviously free on the smart phone. what this does is simply amazing. >> thanks for being here.

peter adderton is ceo of 360 fly developed out of carnegie-mellon university. they received a gift of $30 million to establish the schwarz center for entrepreneurship. there is much more on the spark at cnbc.com/the spark. a new documentary will air. carl quintanilla tries kite flying. i wanted to see carl get the face full of sand. he did a spartan race which is sick. >> go carl. >> thursday june 18th, 10:00 p.m. time for a cnbc news update. >> that looks like a fun assignment. here what's happening at this hour. court officials in north carolina can refuse to perform same-sex marriages if they have

religious okays this. after the state house voted to override the governor's veto of the bill. the state senate did the same earlier. >> airlines boosted their ontime arrivals and boosted answer lagss during april according to government figures. 18% of flights arrived on time in april. hawaiian airlines alaska airlines and delta leaded the way. >> rising home prices boosted america's network to a new high. it rose to $84.9 trillion in the first three months of the year up from $83.3 trillion. hospital staff in paris protesting time table changes that would see them lose days off they earned for working overtime. the government says staff has accumulated a vast backlog of unused off days which escalated to more than $83 million at the end of last year.

>> thank you, courtney. we have 30 minutes to go. this is when volume picks up on the trading floor. with me is keith bliss. what is on your radar? >> looking at the levels in the major indexes. they are staying above where we need them to be to give us the potential of outlook to new highs. we did get down below the may lows. russell 2,000 never sold off while the s&p and dow were selling off. >> wait a minute. we didn't get a correction and now we are going to zoom to new highs? >> from the all-time highs in may we were down 3%. we are at a critical juncture. all the indexes got back to bullish formation. we are confident. there are head winds to be aware

of. the second thing is any time at the end of the day we get noises out of greece. we'll keep an eye on that. and lastly, i want to see the imbalances. we'll see if people cover positions and trade flat. if it takes on more strength on the sell side we'll know people are not believing this rally. >> does greece have to be resolved for us to break out to the new highs? s. >> potentially in june. i think we've become pavlovian. we think it will get resolved by june 30th. >> dow holding on to a gain. new highs for a number of financings today. retail sales coming in. making people feel decent about where this economy may be going. up effects, the story of the day broken by david faber. rupert murdoch planning to

relinquish his role as ceo of 21st century fox. david will be here on what lies ahead for that company. ♪ ♪ ♪ at chase, we celebrate small businesses every day through programs like mission main street grants.

last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step.

our david faber breaking the

news rupert murdoch is stepping down at ceo of 21st century fox. >> david joins us on the set. big story. a lot of people are talking about it. maybe more for the timing of it than anything, is that fair to say? >> i think so. i don't think it was unexpected to people who follow this company closely that james would take over as ceo. if you've i been near the company and talked to rupert i think that could have been an expectation. chase carry's departure was something people talked about. a lot of this is connected, but not necessarily one indicative of the other. carry has been involved in talks which rupert wanted both sons to take over. rupert is not going anywhere. he remains chairman of this company. probably the final decision-maker. but that says carey will stay

around as advisor and give up his ceo title. and the way it's been described with james, as a partnership. we'll see what this ends up meeting. titles at fox can be somewhat fluid. they will be running it. day-to-day you have james focusing on nuts and bolts and perhaps lachlan focusing on the issues. >> remove carey remove as layer outside the family making key decisions. what should we expect as they continue to pursue the way which content is made and distributed? >> a lot of investors have been speculating today. the key thing, they've got to stop having facebook take away that are market. that's what you are dealing with when you're running one of these

companies. there is only so much ahead dollars around and facebook is taking more and more of them. digital like all media companies becomes a key consideration, key challenge and opportunity. it is an area where james has been particularly focused. >> david, thank you so much. >> all right. >> let's bring in senior research analyst at cowan and company. i want to pick up on that point what about facebook? what is the strategy as they snap up more and more ad spend? >> i think it's beyond facebook. there are a lot of places digital media is taking share from television. you could mention netflix. the strategy is hard. tv's had a position for a long time where they had a monopoly on the distribution of content to a mass audience. that is no longer the case. these companies have to be focused more on 0 being content

companies and less being networks. >> do you think the strategic vision of this company changes under james? >> it's a good question. we don't know what ceo james is going to be. we had some indication. he is a relatively forward-thinking person. this is at least going to be a measure by committee between the murdoches. we have to wait and see what his vision is. >> what is your view on the company price target? >> we have a $34 price target on market perform. they have attractive assets particularly internationally with their cable networks. they have a well-run film studio. they are struggling at the broadcast network with ratings. our bigger issue has been this is a family-controlled and family-run business and not necessarily one historically has done right by shareholders. >> chase carey, if he does leave

the company all together what would that mean? >> again, i don't think there is a huge surprise. once it became clear james was still going to be ceo some day, it was a question when chase would leave, not if. he's obviously been an important figure, kind of the face of the company for many of the last few years, particularlyle fog the cell phone hacking scandal back in '11. ultimately james will want to be surrounded by his people. chase is rupert's people. i'm sure james will select capable people to be around him to help run the business. >> the international piece, do you think that gets more of the focus here? >> it's a place where they are growing rapidly. it doesn't seem to be right now to be under the same pressures as the u.s. businesses. obviously, i've got india which are still very much in growth mode. it is where a lot of their attention's been. james, particularly, has been focused on the international

operations for a while. he does have expertise there. >> doug thanks. >> just more than 15 minutes to go on the session. we are coming off the highs. dow up 48 points. s&p adding about five and nasdaq up six. >> still to come on "closing bell," box wrapping up a day. the ceo will join us in a first on cnbc interview. >> they've taken over primetime television. they dominate graphic novels. now zombies invaded the housing market. we'll explain. here at the td ameritrade trader group, they work all the time. sup jj? working hard? working 24/7 on mobile trader,

rated #1 trading app in the app store. it lets you trade stocks options, futures... even advanced orders. and it offers more charts than a lot of the other competitors do in desktop. you work so late. i guess you don't see your family very much? i see them all the time. did you finish your derivative pricing model, honey? for all the confidence you need. td ameritrade. you got this. seven out of ten power outages in the us are caused by weather. but utilities can now predict where the power will go out, within a few city blocks. working with ibm they're combining micro weather forecasts with detailed data from local sensors. to predict where outages are likely to occur. and send crews exactly where they're needed, when they're needed. ibm analytics from the internet of things is making energy smarter every day.

the pursuit of healthier. it begins from the second we're born. after all, healthier doesn't happen all by itself. it needs to be earned... every day... using wellness to keep away illness... and believing that a single life can be made better by millions of others. healthier takes somebody who can power modern health care... by connecting every single part of it. for as the world keeps on searching for healthier... we're here to make healthier happen. optum. healthier is here.

zombie homes are on the rise. what's a zombie home? only one person can explain this. it's diane olick. >> it is not a group home for zombies, sorry. just the opposite. it's a home in the foreclosure process the owner vacated, left empty. kind of a home with no soul if you will. while the overall foreclosure

crisis is improving, something weird is happening with the zombies we are seeing more in higher-priced markets. banks are seeing prices rise and ramping up regular foreclosures. the owners mo have been waiting around for years in the houses are seeing the writing on the wall and moving out. we looked at some of those zombies here in d.c. and in teaneck, new jersey. they have estimated current values quite high. some at over half a million dollars. once they clear the foreclosure process, they could present great deals for first-time buyers as well as investors and flippers. that is very good news for neighbors. >> we would love to have people move in and occupy the houses. it makes it seem unsafe or dreary when you're walking by and see vacant signs. you don't know what's going on with the houses. >> empty houses are a target for

squatters and drug dealers. zombie foreclosures are scary. >> this is interesting. yesterday the ceo of realogy was saying we don't have enough supply for his liking. i'm wondering if this ultimately is in the best interest of the housing market that more properties are are coming job line. >> it is. i asked that question to the folks at realty track who did this survey. the trouble is while there are more of these properties that will come to the market sooner there aren't quite that many. there are about 100,000 zombie foreclosures out there. we need more homes than that. >> might happen if things get busy and prices stay up. homes without a soul. troubling. get somebody in there. 12 minutes to go until the close. dow is up 47 points. >> new evidence consumers are getting back to their spend-happy ways. a top wall street pro gives

stock picks you cannot afford to miss. >> a first on cnbc interview with aaron levie on his company's better than expected quarterly results.

welcome back.

we begin with dominic chou and market flash. >> we want to call your's tension to bullish activity in shares of eli lilly. it's moved significantly higher. there doesn't appear to be significant news that's causing the move. activity in the options market has been skewed toward options to buy lilly shares for set prices in the future. we saw similar price action in this stock two days ago when shares rallied strongly into the last two hours before the closing bell. about 13.5 million shares of lilly traded nearly triple the average daily volume. there's been chatter the last few days about possible drugs treating alzheimer's as well as psoriasis. want to call your attention to that bullish activity the past few days.

today no exception. art cashin indicating there is about $800 million to sell on the close about half he does expect to pare off. >> retail came in good. how about lululemon shares moving lower on news the founder has filed for the right to sell his stake in that company. >> joining us is stephanie lane. welcome back. a lot of weirdness with chip wilson and selling or not selling this stake in lulu. you remain steadfast in the company? >> i still like it. i don't think this is a surprise. he sold half his stake last year in august to advent international, private equity firm. that's when we started to get interested in the name. he is not in any way in an operational function. he is not on the board of directors. it's curious as to why now. >> some see this as a positive. >> it could be.

>> there's been a long history of friction between this gentleman and the board. some people view this as a positive step. >> right. you have new management in place. all new management in there. i've got a new board. you've got a lot of newness there. momentum is starting to pick up. clearly, we saw that in the first quarter yesterday. >> i was going to ask about that newness. there was silly talk about the men's underwear they are designing. is the new management team taking this company in the right direction? specifically with regard to product? >> they are doing a good job in terms of product. not just women's, but men's. they have a junior a child product coming out. i think the real upside is international. they only have about 6% exposure internationally. just think about that upside for the company. advent international, they are experts at that particular part of the world. i feel good about the story.

it's an opportunity. i think you want to slowly be buying. >> what about retail in general? those of us who have spoken with you going back many months you've been fairly positive on retail expecting the consumer to get a bump from gas prices. it didn't help they are under piles of snow but is the story really getting better? >> i think today's numbers were encouraging on the surface. if you exclude auto numbers look better than expected. revisions to march and april which were good. if you have better wages, the momentum can start to build. there were pockets that were strong. those are the areas you want to focus within retail. >> thank you for being here. great to see you again. >> up next we are coming right back with the closing countdown.

there's some facts about seaworld we'd like you to know. we don't collect killer whales from the wild. and haven't for 35 years. with the hightest standard of animal care in the world, our whales are healthy. they're thriving. i wouldn't work here if they weren't. and government research shows they live just as long as whales in the wild. caring for these whales, we have a great responsibility

to get that right. and we take it very seriously. because we love them. and we know you love them too. two streetlights. the only difference: that little blue thingy. you see it? that's a sensor. using ge software, the light can react to its environment- getting brighter only when it's needed. in a night it saves a little energy. but, in a year it saves a lot. and the other street? it's been burning energy all night. for frank. frank's a cat. now, two things that are exactly the same have never been more different. ge software. get connected. get insights. get optimized.

we are back on the floor of the new york stock exchange. time for the closing countdown. that it's 10-year note yield. it actually went down even as retail sales came in good. surprised people in this market including, i bet, the gentleman standing to my left our own bob pisani. that was an interesting thing. i thought after retail came out

today you could potentially have bond yields go up investors get scared about what that means for the fed, then stocks to go down. stocks actually went up building off yesterday's pretty good gain. >> given what was going on in greece was impacting things early on. we saw bond yields move up on news. we are not getting any deal. we haven't seen an outline of a deal. i agree with stephanie. i thought retail numbers were very good. in line was what the street was hoping for. they were afraid it wasn't going to come close. you cover this. retailers had a terrible year. apparel had a terrible year. some of the shoe guys had a good year. anything home improvement, that's the big winner this year. the retail space is bifurcated now. there are losers and a few winners. axovant, the largest biotech

ipo. >> the ceo will be on "mad money" with jim. >> the company opened with a market cap of $1.5 billion and now nearly $3 billion. amazing. >> earnings after the bell. second hour with kelly and company begins in a moment. thank you and welcome to "the closing bell." i'm kelly evans. we are looking for the dow to hold on to gains after a strong session yesterday. up 45 points to close 18,045. s&p 500 up about 0.2%. nasdaq adding five for its part. michael sanol ifrni, sara eisen and

guy adami. michael, let me begin with you. people are going to talk about it for days. retail sales surged. consumers come back with a vengeance. retails sales start making sense. amid all this the 10-year falls. >> 10-year's got a long way. we got up to 2.5%. we discounted that. i don't thing that retail sales numbers has bearing on fed timing. in terms of consumers doing what they are supposed to do that's probably the theme. it confirms the narrative we have some comeback here. people have more money in their pocket. a little bit of follow through to yesterday's rally. nothing too trend important. >> the market had priced it in. the view was that the economy was going to rebound in the second quarter after that brutal winter, the port congestion. buyers stepped into the treasury market. that drove a lot of the action with those lower yields. utilities came out on top in

terms of the sectors. i guess you have to continue to see the economic data come in positively to see another leg up. for the long term investor this is what you needed to see to get confirmation the economy is okay. >> right before the release, citi saying if we get strong retail, the circle is closed in terms of what the foed is looking for. we had david kelly last hour tell us this means we could be talking about two rate hikes this year. do you think all of that is getting ahead of itself or was this information important and critical? >> the information is important. the way everything traded is more important. if you told me these retail sales numbers are going to come out, what is going to happen to the bond market and equity

market, i would have said would you have continued to see bond weakness and tlt close below $114 and see a ramp up in the equity market. you got the exact opposite effectively. look at the tlt up over 2% today. after a huge day in the s&p yesterday, you held on to those gains. on top of that you are seeing signs of life out of the railroads. look what federal express did today ahead of their earnings release next week. noted there was probably on the back of a citi note and upgrade. federal express has been one shining star amongst transports. >> that's a point. fedex up 1.5% today. look at boeing today. having a nice session after it's talking about ramping up deliveries. >> maybe you are seeing glimmer of hope in the transports. that's been the only negative now for the last couple of months. my narrative has been as long as the russell stays relatively

strong we're okay. the fact that the broader market can't sell off in the face of what's been a lousy y-team transports, has been impressive. the market doesn't give you this much time to sell the high. s&p taking the next leg higher. >> we heard keith bliss tell us he thinks this is now poised to break out from a technical point of view. is that possible? >> we thought so. we crossed the 2100 level 17 times since late april. probably a positive. people thought the breakout was going to be to the up side for a while. i think there is time for sentiment to cool down. you saw retail investment sentiment come in bearish today. it has worn people down. i think that's somewhat relevant. i don't see us shooting off to a huge up side. the volatility in the fixed income has not migrated to

stocks. >> fast food chain bojangle's out westernings release. >> it closed up 1.75%. coming in up 17 cents which beats 15 cents. $114 million was the estimate. this could be an issue. they did say their full year revenue outlook did fall below some estimates. the company does say they are delighted to have started off the fiscal year with impressive growth. they want to take a look at what is going to happen in the future. they are excited about white space for growth within the outside of our core markets and an opportunity to create value for stock holders. again, the shares we don't see trading right now in the after

hours. it was revenue in sales beat. small on the revenue side. full-year forecast could be a bit of an issue. we'll see what happens when they reopen for trading. tune onto "closing bell" tomorrow. clifton rutledge the ceo of bojangle's will be with us to discuss the surge. we are just making a point about the individual investor. we had a tough market but they are not buying into this are they? >> they are not. >> beneath the surface, the average stock underperformed the index. the bond market is selling off. the safe stuff people have in their portfolios has been weak. that is not great for sentiment. >> this is where people are talking with regard to the bond world generally and parts of the equity market, is safe no longer

safe? maybe an inflection point where you want to get cyclical and move away instead? >> you have two things uncertain right now. now we know the economy is doing better. you have the greece headlines. though are going to make an impact on the markets. that imf coming out saying they left western making progress on the greek noise. to guy's point of what is making sense and not making sense, the dollar rallied against the euro and japanese yen. that you would expect. the fed will have a chance to update their economic and inflation outlook and match it to what we've seen in the economy. that will be a tell going forward about whether we can expect a move in september. >> guy, how are you playing this market? >> i've got to stay with the

broader market. the iwm continues to hold. stay long the russell despite the valuation. there are single stock stories that make sense. we've been all over these biotech stocks. some of these restaurants named. look at panera which has been on fire for quite some time. banks make sense. goldman sachs made a new 52-week high today. netflix. people will shoot against that on valuation. every story you hear from that space, all roads lead back to netflix, despite the valuation there tesla is about to break out to the up side as well. those are just a few. in the broader market people don't get it. might not be the most liked rally of all time. the market does not give you this ample amount of time to sell the highs in the s&p, which by definition means it's probably going to take the next

leg higher. >> can't disagree. only theme is the m&a story. if market holds together credit markets hold together you'll have a deal-making summer. that keeps the bears on the defensive. it does reenforce the idea money is being recirculated into the market. >> if we are going to see a strong dollar trend. is this a situation where we are going to see stocks rally alongside it or does that become a more traditional way? >> you have to see the scope of the dollar move. if it's extreme and quick, that's worrisome. if it is steadily or ordinarily climbing, you can see the stock market rally with it. it might not be the 90s where we can absorb the impact of a strong dollar. >> this issue of the main theme of the market being the search for yield. is that changing now?

>> that dynamic is changing. the excesses are in perceived safety. i don't know that the economic back drop will accommodate that view it will deflate. >> we are going to jump into this. we have major breaking news to get to. twitter ceo dick costolo has decided to step down. under a lot of criticism from various groups for months now decided to step down. we'll look at the shares soon as we can to gauge the action. he's come under criticism from everybody including our own jim cramer and investors. you see an 8% pop after hours. twitter up nearly $3 to $38 and change on reports dick costolo will step down. it looks as though jack dorsey will be stepping in. dick costolo departing july 1.

twitter shares a little off their highs, but popping substantially on this news. what do you make of it? >> obviously, the market wanted to see some definitive change. i don't think it's about selling twitter. i think it's more about let's have somebody in there with a fresh so the of eyes even if it was the guy there before. >> it looks like in an ak filing they named jack dorsy. mr. costolo himself tweeted, naturally, welcome back jack dorsey. named jack dorsey co-founder and chairman of the board to serve as interim chief executive officer. mr. costolo will continue to serve on twitter's board plchlt.

mr. dorsey will serve on the square incorporated he was part of the founding group of in 2009. we'll mine this 8-k for any other nuggets. jack dorsey is coming back as ceo, as mr. costolo steps down. though he will remain on the board. >> thank you. julia boorstin just had a discussion with jack. he was asked about twitter. people have been asked about twitter. guy, what do you think this means for twitter? how would you trade the news? >> stay long against $35. i think it's unfortunate. i'm not comparing twitter with facebook. i want to make that point. i will make this comparison.

in 2012 if you recall, everybody categorically was calling for the head of ceo mark zuckerberg. i think this is growing pains with twitter. i think if he remained there, they would have figured this out. he is a smart guy. it's unfortunate. the stock against $35 with this news is probably interesting on the long side. >> i understand we are speculating. how does this affect their future as a stand-alone company versus making it would be a good fit for google? >> google stock hasn't done much easier. it would make a lot of sense. before their ipo, i thought twitter made perfect sense for apple. maybe it still does. i don't know. i think it probably puts them on the block. with that said you might see it and see this rally in the stock,

a commesurate move to the upside that might make it too expensive for people to make a play for. >> no buyer gets much in the way of financial value at twitter with this valuation. there are people who own this stock at $70. a lot of people own it near $50. you have a $35 stock. they can figure it on the product side. they don't necessarily have to get acquired. i think there is more time as a stand-alone company. >> john fortt joining us with more detail. >> what is remarkable about this is the degree to which it was not telegraphed. dick costolo was just on stage a couple of weeks ago was asked point-blank whether he was going to be ceo at the end of the year and made it sound like he wanted to be but the language in this filing says he decided to step down. jack dorsey stepping in on an

interim basis to take his place. one story costolo had been telling is about these meals he was having with dick costolo and how they were aligned around the strategy. costolo himself had been saying he and the board are aligned. you combine that with realigning marketing under the cfo, you wonder if this is a descent back into the days of twitter being a little "game of thrones" when it comes to the board and how it's responding. does costolo stay on the board longer term? how hard would that be for a new ceo? how hard are they going to look for a new ceo? lots of questions. >> we are also -- it's being reported from twitter they will have a conference call to discuss this announcement 2:15 pacific time which would be in just about an hour's time. dick costolo tweeting welcome

back at jack to your point about their collegial relationship. up next we will follow the shake-up at twitter. we'll get aaron levie's take. ike mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step. the pursuit of healthier. it begins from the second we're born. after all, healthier doesn't happen all by itself. it needs to be earned... every day... using wellness to keep away illness... and believing that a single life can be made better by millions of others. healthier takes somebody who can power modern health care... by connecting every single part of it.

for as the world keeps on searching for healthier... we're here to make healthier happen. optum. healthier is here. my name is fernando gonzalez. i'm the gas service supervisor here in sonoma county. we moved up here 35 years ago and we just love it up here, it's a fantastic place to live. our function is customer support... ...making sure that our customers are safe and that's the most important thing. we know we are part of a huge company but sonoma county is our home. sonoma county is our pg&e. what we're doing really means something

in the community and it's just a great, great feeling. together, we're building a better california.

. . you are taking a look at shares of twitter. up 7.5% after hours on news the ceo dick costolo is stepping down july 1st. jack dorsey chairman of the board, will step onto that role. we'll continue to follow the story and bring you more as soon as we have it. no one better to ask about this than ceo aaron levie on the heels of that company's earnings report. what do you make of this timing this announcement and the future of twitter here? >> i certainly think there are better people to chat with about this. i was reading it live as you guys were on. fascinating news. i think dick is an incredibly strong leader and visionary. jack is as well. they clearly came to some conclusion there and will be in incredible hands. >> aaron, you are one of the most prolific tweeters out

there. there are changes around the margins. they might allow to you send longer, direct messages for example. we heard from others saying they should sell themselves. it would be a natural fit for google. is that where twitter would be a best fit as part of a larger company, more focused on realtime search and information? >> that is better for them to answer. i think twitter has an amazing amount of up side and hayes growth room. i don't think they would need to pair up with anybody bigger to accomplish their vision. i would imagine they are going to stay independent from here. >> do you know jack or dick personally? >> i do. >> what do you think about jack stepping back into this role? >> jack is the founder of the company.

strong product visionary. i think he is in a very strong position to help figure out where they should be going in the future. for my perspective twitter has been a strong company. i think expectations have been fluctuating. >> you dealt with this as well. you have been through a number of quarters where you feel people haven't fully appreciated your vision and your financial results. do you think twitter itself is falling prey to some of this? would people have come around to their vision? is it systematic of a larger problem? >> i think the challenges in a rapidly-growing company, there are so many things you are inventing there scratch, new business models and new ways of

acquiring customers. it's hard to have perfect predictability. wall street does better when there is a great degree of predictability. when you have a mismatch of a high growth company that is likely going to be dynamic at the edges with the need for a high degree of risk mitigation and predictability, then sometimes you could have a mismatch. i think twirttter is a very strong company. i think it's more an imbalance of what they are achieving. >> do you think dick got frustrated with all this? >> i would not want to speculate on what played out there. >> fair enough. appreciate you sharing your thoughts this hour since this was just breaking. after hours yesterday you posted financial results, the market roundly applauded today. at the same time you are having trouble back to this point generating that consistent positive cash flow and

continuing to grow the business without increasing costs. what is your vision for overcoming some of those hurdles as you look to grow your business in an incredibly competitive environment? >> some of the results we laid out, revenue grew 45% to 65.6 million. we raised guidance for q2, the quarter now to $286 million to $290 million. sales for q-1 was80%. we are driving more efficiency in the business while growing revenue. we brought on over 2,000 customers in q-1 including great winds at deloitte chevron, chipotle. they are moving to the cloud and choosing box to manage their critical content we had a great announcement with the department of justice. they selected box foretheir

secure collaboration. our competitiveness stems from the ability to work with very large security conscious, regulated organizations that need to manage and share their information. that is our focus and it's playing out in a pretty significant way right now. >> we've got to go. they love your acquisitions, but the more you sell the more you lose. do you see an inflection point in that in the near future? >> we built up a sales force and go-to market effort to go work with the world's largest businesses. that leaves us to being able to sign on companies like general electric or the department of justice or eli lilly. it's important to remember our revenue is recurring. that customer stays with us for multiple years and grows their deployment over time. that is what we are focused on. we are going after a $25 billion market. we don't want to slow down that

growth right now. >> thank you so much. we'll let you get back to it. >> cool. thank you. >> it was not that long ago dick costolo said he had support from twitter's board at the code conference. he is now stepping down. >> you will be there at the end of the year? >> look i have to focus on my job and what i've got ahead of me. i don't worry am i going to be working on this date or working on that date. i focus on my job. >> you feel you are in sync with the board? >> i don't feel like i'm in sync with my board. i know i'm in sync with my board. the board and i communicate regularly. one of the things i do is probably overcommunicate with them and we are thoroughly in sync. joshgs joining us for reaction to the news dick costolo is stepping down is kara swisher. good to have you on the line. what is your reaction to this news? >> it's interesting.

he flatly said he was staying. did something happen in the past week or he wasn't telling the truth on the stage obviously. those are the two choices we have. there's lots of pressure building over the past year. there have been a lot of calls that are bad ones. overpromising wall street, not getting innovative growth going, not changing the product there must have been some decision recently he wasn't the one to make it happen. his job was not safe even though he said it was safe. >> what do you make of the news jack dorsey will take the role? what do you think that means for twitter? >> he was a ceo pushed out before evan williams who took over for him. then dick pushed out evan. and now jack is back. jack's been a board member and runs another company.

i don't know. it seems silicon valley pats itself on the back for nonperformance. they need to get a real ceo search going to have someone in there if you are going to turn this company around the way it needs to. >> it's sara. in the release it seems like he is here on an interim basis and twitter will look for a permanent ceo. obviously, we are speculating. do any names come to mind you think would be good picks? >> i don't know. there are lots of people. the question is will this company get sold? two weeks ago, board members told me he was safe. of course he's not. it's a question if they want to do a wide search or find someone in the media business if they want to find someone more technology-oriented. there was a point michael

schuster would have been a potential ceo. that deal went askew. there are all kinds of people that could take that job. we'll have to see how interim he is. interim means they do this rather quickly. >> kara we'll let you go. appreciate your thoughts. kara swisher on the news ceo dick costolo stepping down. jack dorsey stepping in. jim cramer has been critical of costolo. jim tweeted, i okoh dick welcome back, jack. he'll be with us after the break. g you think about. that's where at&t can help. we monitor network traffic worldwide, so we can see things others can't. mitigating risks across your business.

leaving you free to focus on what matters most. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.

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. here is a look at shares of twitter after hours popping on the news that ceo dick costolo is stepping down. he tweeted, jack back jack referring to jack dorsey. joining us for more is jim cramer. you seemed to tweet your support. how far does your support run with simply what's been announced? is jack dorsey coming back to the role enough? >> great question. i was just echoing exactly what dick costolo wrote. it was tongue in cheek. here is what i think matters. there is a paragraph in this release, second quarter 2015 outlook where they did not cut

numbers. i think one of the reasons why the stock can continue to rally is, i thought numbers were way too high this quarter. they did not disclose the monthly average users, which i expect to be down or weak. that is a good sign they did not cut numbers. this was a great opportunity to do so. i think dick i got to meet him once when we were opening our office in san francisco. i think this was a job he probably feels relieved not to have any more. he must. >> kara swisher indicated either he wasn't being totally honest at the re/code conference or something happened. do you think that might have been people getting so frustrated they felt a change had to happen? >> yes. >> i thought sacka's comments were breathtaking. when i read them i met him out in san francisco. we had a candid discussion. i said to him, i think you can be critical of twitter. he came around and said yes.

i wanted his note saying put this plan into place. i don't think dick costolo could have put that plan into place. i think that required too much of this man and too much of a defeat of his current strategy. i'm this guy was over his head. >> it's interesting you bring up chris sacka's plan. it involves things twitter needs to do to make it more user-friendly so those billion people who see it but don't use it are more attracted. things like more categories different buttons and features. would you endorse that strategy? is that what this company needs to do? >> oh yeah. i think the big issue here is the on board. i've got at least three friends who asked tech people that i know at various companies to please help them get on twitter. these are people who are very savvy. the thing is a bit of a

conundrum. it's intimidating. as carl quintanilla said the other day, steve martin left it because it became a drag. why? i'm probably about 40% of the time, i wish i could go to my whack-a-mole machine to see what i have to play with from people who torture me. i don't mind it. i say bring it on. most people do not feel like i do. it's tiresome to be attacked. it's a total fire hose. i was on with a venture capitalist saying come up with something to curate it so all i need to do is see everything i want pro and con about the philadelphia eagles. i shouldn't have to pay someone to create that. i think there is a lot being left on the table. in the interim, i think numbers will be bad for monthly average users, but the calvary has come. it is loved.

where else do you have something where you turn to every channel and underneath it has their twitter handle? there was a front page of a new york paper that had hashtags. these are twitter. it's the greatest free publicity machine i've seen. dick costolo could not make it work. >> jim, you've been so out front calling this out as a management issue. what do you do with the stock now? you have an interim ceo someone you like to see in that role. do you wait to hear the announcement of a more permanent ceo? wait to see how they will monetize it? >> i think the stock gets hit. my charitable trust owns it. i think it gets hit then bounces again. instead of this endless rearticulatere rearticulation. this is one of the most poorly managed stock.

we kept being told look at this metric metric. it became impossible. those of us who had it like my charitible trust dread there would be another negative piece. this was like a team in the nfl that couldn't maintain four quarters of football. i always felt it would go one quarter and fall apart there was something good to kept people in the stock. then a blow-up. every time you got it in you had to get out of it. >> always gets it back to football. >> you talked to aaron earlier. i've gone back and forth with aaron on box. twitter is a loved company and then has become a hated company. you have to change the narrative. >> some validity of the negative criticism you had. thank you, jim. >> thank you.

>> more ahead on twitter ceo dick costolo stepping down. we live in a world of mobile technology, but it is not the device that is mobile, it is you. real madrid have about 450 million fans. we're trying to give them all the feeling of being at the stadium. the microsoft cloud gives us the scalability to communicate exactly the content that people want to see. it will help people connect to their passion of living real madrid.

welcome back. there is a look at twitter up almost 7% after hours. a little off the highs.

popped 8% soon as word came out ceo dick costolo is stepping down. jack dorsey will step into his place as chairman of the board. joining on the phone is julia boorstin. kevin o'leary is here. welcome both. julia, how is this reverberating? >> it seems like in a lot of ways it's a long time coming. many people thought costolo would be given more time to execute on his plan of trying to make twitter a more accessible product to more people. there was a lot of concern that twitter's growth was slowing dramatically. it had not proven to be the kind of product that had a mass appeal. it needed to make a lot of changes to make some of the things costolo talked about. if you want to visit tweets without tweeting yourself. it wasn't reverberating that same way. people thought changes needed to

be made faster. >> this came up when we were talking to aaron levie about should twitter have been given more time. do you think they deserved more time with dick costolo at the helm? >> the risk if you are a shareholder now is this the beginning of a new phase like yahoo had? you have spinning ceos that come and try 36 months extract $50 to $100 million. i can't remember the names of all the ceos that tried to turn gentleman yahoo around. let someone else with a bigger platform buy it. that might maximize it. i don't own the stock so i'm not that concerned a party. i bet most people lost money on it. >> that's what you were saying earlier. >> i think it's time to give someone else a chance to pay 30%. it's a big multiple.

>> chris sacka, one of the biggest shareholders of twitter, an early investor in the company came on our air a week ago and said he thought it would be a great fit for google. he thought if twitter made the changes he thinks are possible it would be more valuable as a stand-alone company. i think the company believes there is a huge amount of potential if they can make certain changes to make it much easier to use. >> i agree with that. the question is there doesn't seem to be three or five obvious things that people are saying here's what should be done. that would magically transform this into a much more user-friendly platform. i think there is a riff where it says it's unfiltered chaotic. it's supposed to be free-for-all

and others say it needs to have an algorithm. >> maybe it's dna that made it so popular is also what con trains it from ever being that monetizable. if that's the case it's better to sell it. >> julia, thank you very much. we'll bring mark mahaney into this conversation. he covers twitter. what do you think this means strategically? >> large implications here. i think the market has been looking for any change. any sort of change out of the company. there is a lot of wood chopping that needs to be done here. what is surprising looking at the last year and a half i don't recall seeing this management turnover in a publically traded company within one year of its ipo.

all four. that's unusual. it's going to take a lot of time to turn this around even if they get the right person. >> this goes to the point to the extent which this churn itself is a big distraction. where does that leave your thinking? what is the company to do about that? >> there are two things an incoming ceo needs to focus on. get someone outside the company to broaden the user experience to make it more relevant to more people outside the twitter, the hardcore twitter users. this should be a couple hundred million more users. need somebody from outside the company to shake up that. then you need to improve on the ad tools. they need to improve the package set it offers to advertisers. that's been an issue. there are two major different directions there it will require somebody from outside the company to fix it.

>> that would be a risk to the very point we've seen at yahoo going through a difficult transition. a lot end bringing a founder figure back to the company to bring some stability. you are saying the opposite is needed here. do any other examples come to mind of companies that executed well on this? >> no. that's the unfortunate thing. jack dorsey is a great entrepreneur. he is not the right person. it's hard to not use the groupon example. you had andrew mason taken down and a recovery. now fundamentals are still problematic. we are not recommending shares even on this news. we need to see a new strategy play out. >> in the release and cramer mentioned, the numbers were reiterated on the second quarter. that was a notable positive given the mixed outlook and

mixed quarter. do you think that is a good sign? what does it mean the board is open to this change? why is that a positive for investors? >> i think investors want any sort of change. we may not get the change we want. we are not recommending the stock here. i think that's why the stock it up in after market news. i think that is a nonevent. if things are doing well they should do better than their guidance for the june quarter. it comes down to how long the process is going to take to find the right person. they have a different approach to twitter because the approach is not working. >> are you going to be on that call? >> absolutely? >> mark mahaney, thanks for your thoughts. appreciate it. >> thank you. >> twitter shares up about 6% after hours. more details on outgoing ceo dick costolo.

♪ every auto insurance policy has a number. but not every insurance company understands

the life behind it. ♪ those who have served our nation have earned the very best service in return. ♪ usaa. we know what it means to serve. get an auto insurance quote and see why 92% of our members plan to stay for life. welcome back. twitter ceo dick costolo is out. mary thompson has the details of his severance package. >> according to s.e.c. filings, if, as it appears to be costolo's departure is voluntary, he won't receive any severance. that is accord together company's proxy. had he been fired or stepped aside for good cause or reason he would have received salary restricted stock units into

options worth about $3.2 million. again, because his departure is voluntary from the ceo position he won't be receiving any additional salary stock units or stock options. keep in stock options. keep in mind mr. costolo owns just over 8 million shares. over the last two years he's been paid a salary of $14,000. back to you, kelly. >> wow that's surprising. we'll have more on that mary thanks so much. let's bring green burg into the conversation. no severance pay. >> stunning. it shows a lot of what this guy is made of when criticism gets so hard and highlights one other thing f. you look at the s&p 500 since 2008 the volatility in the cfo, cio, cto, it's six months. if you don't perform, you get whacked. it's that simple. >> mike? >> maybe it's a good thing.

>> i guess i'm not shocked if it's voluntary resignation you get severance. he'll satisfy himself with a couple hundred million dollars in twitter stock. >> herb, that's a point, he's not walking away empty-handed. >> empty-handed or not, a bigger issue is i'm not convinced anybody, anybody is going to do a better job than he did. it's easy to step back see the stock pop and say wow, this is great news. somebody has to start delivering. i've been out there for a very long time saying i think the company needs to be not independent and under somebody else's, you know range because i think they got a tough niche here. let's not forget i listened to the conversation, we can get our news feed it's my first read of the morning when i get up in the morning, but i think so many people, we've all told people you got to tweet, not tweet, you got to learn how to use twitter and people look at you like you

have four eyes because they just don't get it. >> if you don't think anybody can run this company to improve its financial met tricks you're basically saying this business model is broken. there is no other path than to run a process and sell it to the highest bidder. >> it's a niche, kevin, that's difficult to grow without tremendous distraction that this kind of public scrutiny gives it, if this were not a public company, all things they are trying to do we wouldn't know about and the people inside the company wouldn't have the distraction they have. >> you know how it is kevin, going along with our jobs. i guarantee there are people sitting, what is going on here? >> i can tell you, herb we got to go but they were giving him a standing ovation there. we're showing pictures of the announcement management is making to twitter employees. >> for good reason.

i was a big fan. >> thank you so much herb appreciate it. we'll have more on dick costolo and this twitter shakeup. stay with us. aflac! i thought you said this guy was the best? oh, he's a horrible stylist. gah? but he's the best at paying claims fast! really... mmhmm. paid mine in just one day. one day? yea. aaaflaaaac! in just one day, we approve and pay. one day pay, only from aflac.

♪ ♪ ♪ at chase, we celebrate small businesses every day through programs like mission main street grants. last years' grant recipients are achieving amazing things. carving a name for myself and creating local jobs. creating more programs for these little bookworms. bringing a taste of louisiana to the world. at chase, we're proud to support our grant recipients and small businesses like yours. so you can take the next big step.

hour, dick colstolo is stepping down june 21st. the company talking to employees about the management change, you can see twitter shares up 6% after hours and be sure to turn into "squawk on the street" at 10: 00 a.m. you definitely don't want to miss that. much more "closing bell" right after this. and apparently, they also love stickers. what's up with these things, victor? 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.

when you're not confident you have complete visibility into your business, it can quickly become the only thing you think about.

that's where at&t can help. with innovative solutions that connect machines and people... to keep your internet of things in-sync, in real-time. leaving you free to focus on what matters most. you probably know xerox as the company that's all about printing. but did you know we also support hospitals using electronic health records for more than 30 million patients? or that our software helps over 20 million smartphone users remotely configure e-mail every month? or how about processing nearly $5 billion in electronic toll payments a year? in fact, today's xerox is working in surprising ways to help companies simplify the way work gets done and life gets lived. with xerox, you're ready for real business.

. welcome back. following twitter this hour but we also have breaking news on dish. let's get to dominic chu for that. >> we have a news alert here from dow jones siting sources saying that dish network is in talks with banks about lining up possible financing for a t-mobile bid including up to about 10 to $15 billion in cash. again, that's a doew jones story. david favor has been reporting in regard to the relationship between dish and t-mobile and any possible talks a bid for t-mobile would be a deal that would be mainly a stock transaction, also, that the parent company of t-mobile would have a big stake in any come mined company. anyway, more details there.

>> much-needed. thanks. appreciate it. my thanks to the panel. we have 15 minutes to go until the conference call with twitter. melissa lee, there is going to be a ton more that we find out, i'm sure then and as people do the play by play and what happened in the past week and try to figure out what triggered this turnover. over to you guys. >> we'll have the details. ""fast money" " starts now. overlooking times square, i'm melissa lee. the massive shakeup at twitter continues. dick costolo officially out. he'll depart july 1st. co-founder jack dorsey will step in to serve as interim ceo. we'll have live coverage of the conference call. in the meantime let's get to david favor who has more details about the departure, david? >> melissa, given the pressure costolo is under, many thought he would be forced out but