data mpd data for may, better than expected. these stocks have been totally ignored and they have underperformed. i don't think you need much good data to have these stocks see a little bit of a lift. >> jimmy? >> staples will soon get regulatory approval for their merger and that's why it's climbing to 17. >> guys thanks. >> thanks. >> thanks for having me. >> "power" starts right now. >> "halftime" is over and "power lunch" and the second half of the trading starts right now. >> hello, everybody. i'm mandy drury and tyler mattson is live at icon nick los angeles. he'll be joining us shortly. flight attendants suing boeing for unhealthy air in planes. have we all been impacted? a changing of the guard on wall street. some old names eclipsed by new names. you'll see head-turning market changers creating new fault lines for investors and on this day tom brady goes before the nfl. shaquille o'neal says he used to deflate balls, too. he'll be joining us live on the

show. can't wait for that, but we do begin with new fears about flying. poisoned flight attendants accusing boeing of knowingly endangering airline passengers. cnbc's phil lebeau is in los angeles. give us the story here. >> reporter: this is the kind of lawsuit that could potentially impact thousands of boeing airplanes being flown around the world. we should point out this is simply allegations at this point. a lawsuit was filed yesterday here in illinois against boeing by four flight attendants. let's set the story up for you involving these flight attendants. they were on a 2013 alaska air flight. four of the flight attendants got sick. three of them passed out. they allege that toxic fumes were fed into the cabin through the air ventilation system. they are blaming the bleed air system which basically brings outside air through the engines, filters it and it's supposed to make it suitable for air to be breathed in the cabin by passengers. the flight attendants say that didn't happen. >> the next thing i knew i was on the gallie floor and the

other friendant was on the p.a. system mumbling incoherently trying to get somebody to help. >> absolutely not. i was on flight i was healthy. i got off the the flight and i have never been the same since. >> what does boeing have to say about this lawsuit? officially the company has no comment on this specific suit but it has heard complaints about the quality and safety of cabin air in the past and the company has made it clear in the past that it believes that the system that is used for many of its airplanes, almost all of its airplanes, is a safe system. in fact on the issue of defending its air quality boeing has said cabin air is safe to breathe. research has consistently shown that cabin air meets health and safety standards and that containment levels are generally low. we should point out a conference call was just held with the attorneys for those flight attendants. the question came up why are they not suing alaska air? why are they not suing the

manufacturers of the aircraft engines, and why weren't more people on this flight sick in the attorneys said that they believe that alaska air didn't know that there was a problem or could have been a problem with the bleed air system and they believe that it's a design flaw with the airplanes, not with the aircraft engines. as for why other people on this flight were not sick mandy, the lawyers say they are going to reach back and try to reach customers who were on that flight to see if any of them had symptoms after this flight but at this point there's no indication that anybody else was sick on that flight. >> okay. we need a lot of answers to a lot of questions there, phil. thanks very much for bringing us what we know so far, and shaw's of boeing right now are down by about 1%. let's go to greece now with the government unveiling new reforms, but there's a lot of controversy surrounding their new rescue plan. chief international correspondent michelle caruso-cabrera is live from athens with the latest. hi michelle. >> reporter: hey there mandy. this new plan haven't seen it officially yet but started to leak out. we do know the finance ministers of the rest of europe have had

almost 48 hours now to look at it and think about it before they have the big meeting tomorrow to decide if it's good enough to try to negotiate something different, but what we do know about this plan is it raises a lot of taxes in order to achieve about 8 billion euros worth of fiscal measures and it will affect retirees who will likely have to contriubute more to their pensions or not be able to retire as early as they thought. as a result of the details leaking out, we're already seeing protests. today there was another one. this one from pensioners who are concerned that they will be affected. we took this opportunity to speak with pensioners about this controversy about the retirement age in greece. spoke with one gentleman, worked in a bank retired at 60 and he said it was completely normal logical and okay that people retire at 55 because in greece the rule is you can retire after 35 years of service, and if you started work at 20 that's okay. 55 sounds very young to retire.

>> for women i cannot say that because the most of the women in greece work in very hard environment. >> reporter: says women work very, very hard. it's tougher for women because they have children, et cetera and we find that a lot here. women tend to retire at a much younger age than men, and then i spoke with another gentleman, i said you know other parts of the world people retire at 65 and he said 65. that's too old to retire. >> which boss can keep somebody to work 65 years old? everybody was -- everybody is looking for new people. >> reporter: look, anybody can retire whenever they want. the question is are you doing it on back of the taxpayer or not? and that's the contention of the imf and the creditors to greece that their pension system is

costly, that it's taking out taxpayer money and runs a deficit and that problem has to be solved and how are they going to do it? that's going to be one of the battles over the coming days so greece can finally unlock bailout money so they can keep paying their bills through summer. mandy, back for you. >> one of many battles by the sounds of it. thank you very much michelle caruso-cabrera. back to you shortly. two-year notes up for auction and rick santelli at the cme. what is demand like and what grade have you got? >> nerms of grade, a b-minus, vacillating between a c-plus and b-minus. very strange auction. 26 million two years, yield at the auction .692. the yield was lower. it looked like .695 was trading on the offer side but nonetheless that was the good part. here's where it gets strained. weakest since december of '14. however, indirects were the strongest at 52.6 since february of 2010. the directs, weakest since

january of 2015 which gives it that b-minus, but maybe it's odd because whether or not the fed actually normalizes in september, will have a large effect on maturities like two-year notes. tomorrow five-year on tap. total for the week mandy, 90 billion. back to you. >> thank you very much. b-minus for the two years and let's get a check on what the ten-year and 30-year bonds are doing. ten-year at 3.92% and earlier we did crack above 2.4% 2.4 being a key technical level and the 0-year bond currently sitting at 3.17, but we did earlier crack 3.21% which i do believe is a fresh one and a half week high. let's get to steve liesman with a rapid update on the economy. stevie? >> mandy thank you very much. the cnbc update shows an economy bouncing back modestly from the contraction in the first quarter and by the way a first-quarter contraction, not as negatively as earlier reported.

0.3 on the first quarter, originally reported at minus 0.7. we'll get a full revision tomorrow at 8:30. second quarter tracking 2.9, a modest rebound, not as strong as hoped. you know tracking that 1.5% for the first quarter, a little below that with a range for the second quarter of 2% to 2%. let's look at who is where. goldman sachs at 2.9, atlanta fed at 2% and what we see is the tale of two different parts of the economy. home sales are doing well up 2.2%, another strong housing report that we had here whereas durable goods, minus 1% on orders. ex-transportation up 0.5 and business up 0.4% so that shows that manufacturing has not yet come back from the winter weakness whereas housing seems to be. here's some commentary that we got. capital economics, they are seeing the glass really half

full. they are saying there is now a wide mix of evidence showing after a very weak start to the year the economy is booming again. over at hfb, another encouraging housing report. this morning fed governor jerome powell talks about a rate hike in september and in december but said it was 50/50, guys and i think it was exactly what mandy was talking about. we did have the ten-year spike up to 242 earlier this morning. it's come back down now to 239. worth watching here. powell is not all that confident in the september to december. seems to suggest it was his best guess. >> and likely sees a strengthening in the second half, right, that things are going to get better? >> and we're starting to chronicle that. up to 3% now, and there's still more data to come. had a strong consumer strong housing. manufacturing has lagged. >> okay. thank you very much. steve liesman with the rapid

update. now to tyler at the iconic conference in los angeles. tyler, hello. >> hey, mandy. wish you were here. very interesting day iconic second stop out of three on the unique partnership between cnbc and "ink" magazine and try to help entrepreneurs or would-be entrepreneurs to manage their business better and here with me now for two hours as sort of my co-anchor on site is that deliverer of tough love host of "the profit" on cnbc marcus li lemonis. >> we've got the chief of go daddy. >> shaquille o'neal coming on. >> shaquille o'neal and burt jacobs of life is good a pristd company. i want to ask you about the relative virtues of going public versus staying private. how do you weigh that in the

businesses? >> every private entrepreneur struggles with that dilemma, going public. staying public has its benefits and going public has benefits as well. not the vehicle that the company provides. businesses will exist long after you and i are gone so what's the plan going to be? public vehicle provides the structure and the discipline and the board structure. it's just allotted clearer for the business. >> so why haven't you chosen to do it? >> it's a great question. i don't think about succession planning as much as i should but i will get you later for asking me the question. people ask me that question all the time. >> a lot of people think of it as the ultimate exit strategy. >> it is but i'm not a seller i'm a holder and the only reason i would ever want somebody to buy into a public vehicle that i had is to give them an opportunity to invest side by side with me. if i ever took a business public, i wouldn't want to take the shares off the table. i don't want people thinking i'm doing it just to make money and

that i'm going to run for the hills. i think that's a very important distinction. >> we'll explore this topic further in just a couple of minutes tame with kip tindal of the container store. mandy, wish were you hear. >> sounds very night. check out shares of crest diagnostics outperforming the broader market. what is ahead for that stock? plus, facebook knocking walmart out of market cap top ten. walmart down 15% this year. facebook up 10. how the list of the top ten stocks on the s&p 500 have changed over past five years. stick around. (vo) rush hour around here starts at 6:30 a.m. - on the nose. but for me, it starts with the opening bell. and the rush i get, lasts way more than an hour. (announcer) at scottrade, we share your passion for trading. that's why we've built powerful technology to alert you to your next opportunity.

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medical testing giant quest diagnostic services is about 0% of americans and nearly half the nation's physicians and hospitals. quest's ceo joins our meg turrell in a cnbc exclusive interview. over to you, meg. >> thank you, mandy. steve, thanks so much for joining us. >> my pleasure, ma'am. >> want to ask you about the environment for testing right now. in terms of the affordable care act giving so many more people coverage and also comparing that are the idea that we're trying to contain costs and maybe having people getting fewer tests. how are you seeing that play out? >> the affordable care act we believe is a positive development for us in the industry. the simple fact is we believe that the main principle of the

affordable care act is to get more people insured and when people have insurance they need what we do and our diagnostic information services only represent about 2% of health care costs but represent about 70% of health care decision-making so it's very important for people to have a good baseline of what's going on with their general health and that's where we participate. >> is there a pushback on reimbursement for testing or even on the volume? >> another good part of the affordable care act is because of the important nature of what we do it actually provided for the preventive portion of what we did with zero out of pocket to the consumer so part of the act is to make sure that you get tested and you have a good diagnostic baseline to understand what's going on with your health so when something happens you can take action. >> i want to ask you about genetic testing. this is a big area of growth. you guys are in the brca area area made very public by angelina jolie and you even mentioned her on your last quarter earnings call. tell us about the angelina jolie

effect. >> genetic-based testing is a growth area for us. in the last quarter we say it grew faster than ever before and there's really two sides of it where we can use genetic information to be able to say what drugs will work or will not work. sometimes we refer to it as precision medicine and the second is what you refer to as risk assessment and with breast cancer we know the gene mutations for at-risk person. it's very important to understand whether you have that mutation because if you have the mutation there's a 70% chance you could have breast cancer and 40% chance you could have ovarian cancer. >> a scale very important to compete because there's so many companies in testing, myriad genetics with the brca. do you have to be the biggest player in order to win? >> meg, it's interesting. the cost of actually screening the genome and getting that genetic information coming down the more important part of that value is attaching it to information and then to be able to explain it with services so the scale is really getting as much information as possible to find that insight that's

valuable. >> steve, so many more questions for you. we'll leave it there for you. thanks for joining us. >> thanks meg. >> mandy over back to you. >> quest shares a little unchanged at $72.36. let's get to eamon javers with a news alert. >> just a few minutes ago white house spokesman josh earnest confirmed the president will make a new executive order and presidential directive tomorrow regarding american families whose loved ones are taken hostage overseas by terrorist entities like isis and al qaeda. there's been a lot of controversy over this one. as you know, the current u.s. policy is that the united states will not pay ransom for any hostages who have been taken, but a lot of the family members of those hostages have been very frustrated and said that they themselves would like to negotiate for freedom of their own loved one and the u.s. anti-terrorist financing laws if they make payments to get their family members back. now the u.s. is poised to change its policy. josh earnest from the podium would not say what the new

policy is but it's widely expected that the united states will relax the prohibition on family members paying for the release of their families. that's going to strike a lot of debate here in washington where that no payment for ransom issue is really widely believed to protect americans overseas because they are not out there trying to take new hostages and raise money for isis. we have a statement here from elaine weinstein. she is a family member of warren weinstein who was killed accidentally in a drone strike earlier this year. she says we hope to be the last family that fails to receive the level of coordinated government support that those who serve abroad deserve when trouble finds them. mandy? >> i think the families being frustrated is an understatement. thank you very much eamon javers. >> rents are soaring. some areas seeing huge double-digit jumps. the impact and negative effects on the economy. first let's head back to ty at the iconic tour in los angeles. >> up next, man behind the

container store. how is business doing and how can he get the stock back on the trajectory that he and hire shareholders would love to see? that and more next on "power lunch."

and the second stop of our 2015 iconic tour.

theater was it's really a palace to the silent movie era. and a palace to people who like to get organized is the container store. it bills itself on conscious capitalism paying higher wages than competitors believing talent and training is at the core and the stock has had a struggle. down 43% over the past year and more than 50% in the past few years. kip tendal is the container store's ceo. talking a moment ago about marcus about the relative virtues of going public versus staying private. a year or more out from going public, how do you feel about it? was it the right decision for you, and why or why not? >> well we were a private equity company with leonard green which was a beautiful marriage. really loved those guys. that worked out really really well for us.

my dad failed to leave me $2 billion, $3 billion so you have to do something, choose another private equity firm. you can go public. i mean with only 72 stores we're sought off by a lot of bigger retailers but didn't want to go that route because that sunday gates your brand and management team to a larger company and so going public is -- seemed like the right alternative. our management team's decision. not our partner's decision. one of the best things about it is that you get to get more stock in the hands of the employees and i'm very passionate about that. when you're private the only way to get stock in the hands of your employees is to have your partners get diluted and sometimes partners are hard to find when it's time to get diluted even if they are in favor of it. >> the reality of it is when you have a partner like leonard green or any other partner who invest the growth capital they are looking for some sort of liquidity event, verizon, in fund one, two or three and comes time the business did well and you can't refinance them out. >> after seven years or so they

were very happy about this. >> absolutely. >> the other thing is suddenly everybody knows a lot more about your company, so if you're thick-skinned enough if you're not steppy-toed, you can learn a lot from everybody. people -- these brilliant people know a lot about your business. if you don't mind the constructive criticism, can you learn a lot. >> one thing i will say and i'm a shopper of your company. >> thank you. please redouble your efforts. >> not a shareholder but a shopper is the experience in the store is so fluid and so clean and so right, and it really is a testament to how you treat your people. talk a little bit about how you treat your people. >> well, i mean talent is really the whole ball game. i mean it's no different than mark cuban selecting people to play on his basketball team. we want the very best people. one of our foundation principles is one great person is equal to three good people. very easy for somebody to be three times as effective at doing anything as someone else so why not only select great people. we pay 50% to 100% above

industry average. >> you're paying on average $48,000 a year. >> in retail that is a lot of money. >> not only is it a lot but it really sets the mark for people wanting to come to be a part of an organization like that. >> a guy named lieu corbone said the first 25% of any employee's activity is mandatory. they have to do that is to keep from getting fired and the next 57% is completely voluntary and only do that if they agree with the boss the product and i think our employees' is in the 80 or 90s and our turnover is only 10% where the average is in the triple digits. >> what do you mean when you say we practice conscious capitalism? what does that phrase connote to you? >> i wish we could spend the next half day talking about that. business is not a zero sum game. somebody doesn't have to lose in order for to you win. if you take better care of your

employees, if you take better care of your vendors and form more synergistic relationships, more win-win relationships with them, if you treat the community better and the customers better and shareholders better the universe tends to conspire to assist you. easy to do well in business if everybody wants to see you win than onit. >> and that philosophy is the reason it's a good stock. the fact that it's down a little bit, a lot of variables. staying consistent to the brand and now he's run his business do not waver for anybody. we've known each other for a while so do not waver. >> gentlemen, good to see you. kip, good to see you. >> thank you. >> thank you, my man. >> love the alpha shelves he sells in the container store. >> quite a vote of confidence from marcus. thank you very much. back to you soon tyler and the profit. facebook trading at an all-time high going all the way back to the ipo. social media giant now walking walmart out of the top ten market cap list. dominic chu has been looking at

all the big changes over the past few years in what is i guess a pretty elite group, dom. >> take a look at chart you just showed here facebook stock and walmart stock moving in opposite directions and how much has the top ten in the s&p changed over the years? we'll show you after the break. keep it right here on "power lunch." verizon say neversettle. t-mobile agrees. never settle for verizon's overpriced gimmicks. try the un-carrier risk-free for 14 days you'll love it, or we'll pay for you to go back.

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.

. the internet stock story, thriller or tearjerker? a top analyst on netflix,

facebook twitter and google. how investors can read between the lines. "squawk box" tomorrow on cnbc. hello, everyone. i'm sue herera. here's your cnbc news update this hour. the white house urging congress to send fast track trade legislation to president obama for signing this week. the legislation clearing a key senate hurdle by a 60-37 vote precisely the number needed to allow a final vote. the death toll from pakistan's devastating heat wave in that country's southern province reaching 622 and pakistani officials expect that number to climb further. temperatures hitting as high as 113 degrees over the weekend. a ceremony remembering those who died in the battle of okinawa during world war ii was held in southwestern japan today. organized resistance against the allied assault came to an end on june 23rd, 1945.

more than 200,000 people died in the battle almost half civilians. doctors in australia are warning against the dangers of wearing skinny jeans. a woman was hospitalized for four days after experiencing muscle and they are of damage after squatting for several hours while wearing the tight-fitting denim. she was helping somebody move she she was unpacking boxes. that's the news update. all right. back to you guys. mandy. >> thanks very much, sue herera. facebook is trading at all-time high levels and in just three short years has eclipsed walmart in market cap. that got us thinking about news stocks verseuality the old. dominic chu is here with that storey. >> mandy, when we say old we go back five years so the end of 2010. just to kind of keep things in the modern era. even then the top ten stocks in the s&p 500 have changed a little bit and significantly in other parts, so let's take you through this time machine, first of all, because behind me here what i have is the list of stocks. now, you can see the current market caps of facebook and

walmart. facebook 238 billion and walmart 234 billion. now, if you expand that time machine to look at all of these top ten stocks within the s&p 500 it's interesting because exxon and apple, always going to be near the top. now, we kind of know where this is going to go because exxon, apple, berkshire, ge all of these names, exxon worth almost $400 billion back then. walmart, chevron, you name it a veritable cornucopia of blue chip stocks. knew blue chip stock heaven you almost want to call it. if you take a look at today's top ten, it looks similar, but there's some notable notable changes that are happening. if you take a look now, apple, already know the most valuable company in the world bigger than google and microsoft just about combined, so apple, google and microsoft. didn't see goingle and microsoft in that top ten before. now, three tech or consumer electronics companies makes up the top ten. exxon number for you and berkshire still up there. didn't see wells fargo and america's biggest mortgage lender, $3100 billion,

johnson & johnson and ge still there, jpmorgan chase, two financials among the top ten valuable companies and facebook kicking walmart out of the number ten spot so tech and financials. the conventional wisdom is those guys lead the rally. they have now and have become some of the most valuable companies in the u.s. when you have the likes of apple, microsoft, google jpmorgan chase, wells fargo all now in the top ten. >> putting you right on the spot here, dom. five years time from now, who do you think will be the leader of that board? >> interesting. i still believe, and this is not because i have an ax to grind on apple or not, but it seems like apple has this momentum along with it. see whether or not it can keep it up. you never know. the law of large numbers says these guys got to start giving some of those things back and some of the larger ones and smaller ones down here will move up towards the number one spot. >> maybe you and i will be here standing in the same place five years hence. let's go to bond market where

rick santelli is tracking all the action at the cme. rick, how are we doing? >> hi, mandy. the two-year note auction didn't do a lot to the marketplace. seeing a bit of easing up on rates, for example ten-year dipback below 2.40 but hard to say if that was due to the auction. let's put a chart up for early march. first we're going to do the two-year. the left and right are almost equal. look what happens as you go to the other end of the curve on the 30-year. the spike on the left march 6, high yields for the year. you can see how the 30-year has definitely steepened the curve since then and throughout all the time would you think the dollar has been on fire and it has been at various points. looking the dollar index it has a lot of room pretty much like today. the beatles had the magical mystery tour and go to l.a. where tyler is in charge of the iconic tour. >> all right, rick thank you very much. marcus lemonis and i are here at iconic tour with a few hundreds

of our closest friends who have taken a bit of a break and we're joined now by shaquille o'neal. he may call himself sha loyal 3, the nba legend trying his hand in internet startups named loyal 3. the company gives everyday investors a chance to buy just a fraction of a share in up to 65 companies, and right now those companies include names like apple, google and gopro. let's bring in barry schneider the president and ceo of loyal three and shaquille o'neal. gentlemen, welcome. glad you're both here. barry, let's begin by getting to you explain what your company does precisely and why shaq is such a good fit for you. >> thank you, first of all, for having us here. we make it easy and affordable for everybody to have access to invest in the brands they love and that includes ipos, and who better than shaq to be able to let the fans know that there's a

way to get back in the game in the investing game. >> this is not only for the rich and the wealthy, this is for everyone as barry has already stated, and, you know not for the young rich investor but for the common man to feel good about himself, to feel that he can get into the game and, you know attack on the ipo, like you said. >> so how many people have -- have you already attracted as investors, and how many do you aim to reach? i mean shaquille is probably the happiest brand in america. i mean that's sort of what he stands for. barry, answer me that. >> large numbers, we can actually have people access ipos in the millions and we can do it in a way that is easy. people can invest as little as $10. it's a simple process, three clicks, and it's fee-free. for ipos people can invest as little as $200.

>> shaquille, i think one of the things that i was happy about you coming on is most people don't know that you're a very sophisticated investor not just in the stock market but in real estate. so it tells me a lot about what this company is doing, and i appreciate you coming on. do i want to shift gears a little bit. tell me a little bit about the tom brady deflategate and you and basketball. would i like to get a little insight on it. >> tom brady is going on with the deflatedgate. i had no idea that it was a written rule behind letting air out of the ball. for me growing up as a youngster i called it the dr. j grip. i needed a certain grip on the ball. so a lot of times the balls had a lot of air so if the balls had too much air i would take the needle and let it out. again, i was not aware that it was a letter of the law that says, hey, you know what, you can't let air out of the balls. i had to do what was really really comfortable for me. >> do you think that tom brady should be suspended?

>> i mean if it was a letter of the law in football then you know, i don't really get into the rules and regulations, but, you know tom brady has always been a great athlete, has always been an outstanding citizen and, you know again, just all about, you know comfortability when you're playing but realistically i don't think because he let air out of the ball is why they went on that run in the second half. i don't really think that has anything to do with it. most teams -- most teams use different balls, you know. i'm understanding that hey, one side uses a ball and the other one uses a ball but i don't think that really has anything to do with it. >> i'll tell you the one thing that people know about you, and i know about you because i lived in miami, is that you always follow the letter of the law. you have great sportsmanship and you followed the letter of the law and were you successful doing it so i think when you see players that don't follow the rules it really upsets the fans so that's the reason i asked does he deserve to be suspended if everybody else is playing by

the same rule and you did, and you won championships. >> again i'm not familiar with the letter of the law of football and you're right it is a great question, but, you know tom brady as a person he's an outstanding person. he works hard. he's a great at leet and, again, it's my person opinion that he let air out of the ball that's not why they went on the run and why they were able to win the game. all about comfortability as a player. >> i think there's an interesting financial segue here in that we're talking about a level playing field, and that's exactly what the principles behind loyal3 are, to re-engage the middle class, let them have access even to ipos and it works for individuals and fantastic for companies because people that own a company are more loyal to that company, and what ceo in america wouldn't want to say to their community, their customers, their partners or

affiliates, their employees, you matter. you matter so much that i'm going to provide access to our ipo to you at the same price as wall street. >> i agree, barry. appreciate you coming on. i agree with you. i think the fact that you're allowing common man to invest is great. i want to make sure they have all the facts and figures. i'm sure you're giving them that. shaquille, thank you for coming on today. >> thank. >> all right. mandy, back to you. >> okay. thank you very much. and i'm glad that shaquille wasn't standing next to you. anyway rent prices rising across the nation but not in places you might expect. we're going to tell you where rents are the highest and why this trend could be bad for the economy. that is next.

in the ever changing retail environment, the company life is good is growing by selling

optimism. the company sells apparel, accessories, you know the products strategic partnerships with companies like hallmark. it's an interesting company, gives 10% of profitability to social causes and bert jacobs is the ceo and the chief executive optimist of life is good. >> good to see you. >> good to see you tyler. >> we've been talking a little bit about the relative virtues of going public versus staying private. >> right. >> you're a private company. you want to stay that way. why? >> we want to stay private. we don't have anything against public companies, but in our experience in talking to friends that have gone that way, it's very difficult to become anything but focused on dollars per share per quarter, and -- and for us the business is a tool to do more than just make profit. >> you know, you're also going through a bit of a transition in your company. you and your brother who found it had are stepping back from the sort of the operational side of it to cons trade more on the creative side of it. a lot of founder entrepreneur

who do that find it very hard to do to step back and away from the baby that you've built. >> right. going to see if he actually steps back though because i'm not convinced he's going to. >> i wouldn't consider stepping it back but i don't think we'll have any problem getting away from operations. i'm not being humble when i tell you my brother and i are not that great at operations, good enough to get the business from "a" to "b" but we'll bring in somebody who is smarter, faster and stronger. our strong suit is creativity so that's where we're going to work. >> very few people i look up to in business and bert is one of those folks. >> thanks marcus. >> not just because he understands the business the purpose behind the business it's business with purpose. you don't do a lot of traditional advertising. tell us about how you get the word out about your company. >> the way we get the word out is two things really. we throw events that are public events. we've had pumpkin festivals. we've taken over major league baseball parks. we've had dog agility shows. we have concerts et cetera but

we bring people together that are optimists. we bring them together and raise money and awareness for kids that really need it and that helps to build a community so the events is one big piece. the other thing we try to do is life is good is not about us. it's about the listeners so we try to tell stories about people. life is not always easy right, life is not perfect so how can optimism help people overcome obstacles, overcome obstacles and see the opportunities? those are the stories we like to tell. >> how has licensing become a bigger part of your business today than ever? i see your product all over the place. you don't manufacture all those things. >> no, we don't. >> so licensing is really important to us because, you know, from the beginning it really wasn't about apparel. we know how to make basic apparel well and been in every factory in the world, right, but the apparel is a vehicle for the message, it's a vehicle for connecting, for communicateing so there's lots of other vehicles. signed a deal with hallmark so everything we put on a greeting card or a t-shirt is now a greeting card.

you know why not? why not make home goods. we make pet products. why do we make pet products? because we found there's a connection between optimism and pet owners. >> right. >> and when you look at your total revenue, your cash flow when percentage, not the dollar amount, what percentage comes from licensing versus making the product? >> still shawl but it's ramping up. less than 10% but it's ramping up fast and probably on balance within the next three years it will get closer to 30%, 40%. >> we did an episode here on "the profit" to a drug companies in massachusetts, probably going to call you because i can remember the life is good drums for tyler. >> you and your power were literally down to your last $78. >> that's right. >> and now you're sitting on a brand that generates 100 million or more in sales every year. >> that's right. >> what is the power of that and where did that power come from? >> i think the brand is powerful because it's timeless okay. i also think it's so simple that people can understand it so we

say we don't advertise, but the brand in and of itself. >> is the advertising. >> that's right, that's right. people understand it right away. we like to say that simplicity is a super power. >> who came up with the stick figure? >> i came up with everything. my brother is just riding my coattails. >> modest, modest. >> we'll bring your brother on the next time and get the real story. >> ever get a chance to see bert on stage or marcus on stage, mandy, i'm telling you got to do it. they are life-changers, not kidding. >> that optimism is contagious isn't it? i'm feeling more optimistic already just listening to them. thanks a lot, ty. back to you very shortly. okay. back here at hq food stocks delivering great returns. we'll look at three of them in the second hour of "power" and blackberry shares taking a bit of a hit right now after the phone-maker reported a first quarter loss but there was a bright spot and a big bright spot. we're going to tell you what that is in two. verizon say neversettle. t-mobile agrees.

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here are this hour's power point. capital economics says there's a wide mix of evidence showing that after a very weak start to the year the economy is quote, booming again. won taner store ceo kip tindell

says you need to take better care of your employees because talent is the core of your company and if you missed any of the big stories in the past hour, go visit the side powerlunch.cnbc.com and u.s. durable goods orders fell 1.2% last month. is the economic rebound stalling? 54% say yes and 18% say no and 27% say this is just one economic sector. large caps versus small. what is the better investment right now? that in today's power play still ahead on "power lunch." 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. checking out the listing on zillow i sent you? yeah, i like it. this place has a great backyard. i can't believe we're finally doing this. all of this... stacey, benjamin... this is daniel.

you're not just looking for a house. you're looking for a place for your life to happen. zillow. 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.

. what we can't compete with shaq, but our show ahead is still pretty good. full market coverage as always. greece staying in the headlines and why buying a home just to rent it out may be one of your best or worst investment ideas right now. why blackberry shares went from hero to zero gain all in the last few hours, and the video you've got to see. a paddle border getting up and close with jaws or at least, mandy, some of jaws' kids. it's a real life shark tank.

amazing video the dude has shot, and he's got -- he's got -- he's brave. >> yeah. i can believe it. okay. thanks, brian. look forward to it but let's check on the markets real quick because stocks are mostly flat as the market reacts to i guess mixed economic data today, the situation in greece is wearing away in the background as well and the nasdaq did briefly hit a new intraday high earlier in the day. currently the nasdaq is lightly negative at 5152 and the dow and s&p, i mean art cashin it's flat as a pancake today, and yet we've got a number of these indexes sitting around record highs. what gives? >> well the problem was that the s&p and the dow basically rallied back up to yesterday's highs and really didn't make any conclusive newer highs than that, and traders saw that as kind of maybe a mini double top, extra resistance and that took the thrill out of bidding for securities. plus the fact that europe -- i wouldn't say they closed at the

low of the day, but they pared back their gains substantially. allotted coming up tomorrow. there should be that meeting with greece and about things so traders are taking a little bit of risk off going into the close. >> it greece the most important thing to traders right now, art? >> tomorrow there will be two things. greece which will probably be 80% of what they care about and the other 30% will revolve around the revised gdp number. does that get strong enough to give you a chance to grow the economy as the year moves on? >> what's the feel on the floor then, art, that the more likely move, the next move from the levels we're at now is a breakout to the upside or sort of a sync to the downside art? >> well you're poised for a potential breakout to the upside. certainly closer to the highs so you would like to think that if they can get it moving, but there's a lot of cynicism down here that even if they get a quote, unquote deal for greece it will only be something that pushes a can down, to you know

perhaps december or the end of the year and you won't get a full resolution and that markets will be a little concerned about that. >> is there much conversation about what's happening with yields? talking with rick earlier on. i don't know if you heard the conversation, the fact, that for example, the ten-year cracked the key technical level of 2.2% and, you know also one and a half week highs for the 30-year as well. are they concerned on the floor, art? >> absolutely. what they have been watching is it looks like the fed has evolved a new kind of party line. today we had powell talking about how he still hopes and believes they can do two rate cuts this year. that's the same thing that williams said last week so it looks like everybody out on the speaker's bureau is going to try to condition and caution the market, that there still could be two rate hikes. i don't believe so. i don't believe we'll see any rate hikes this year. >> and i'm not sure that the fed actually believes it, and i think the last thing they want

to do is get close, for example to september and have a stunningly strong piece of data come out and push them up against the wall so they want the markets to believe always that there's a chance of a rate hike so that the price won't be greater. >> why are you saying no rate hike in 2015 art? >> i don't think the economy and the markets are strong enough. let's see what happens if they get the greek deal. that might embolden the fed a little bit for them to do a little bit more but i don't think either the economy nor the markets are in shape yet for a rate hike. >> certainly if greece continues to be a problem, might be a good excuse to push off a rate hike. >> thanks very much. >> art cashin always good to talk to you. brian, over to you and i'm going to ride shotgun. >> see new ten seconds. >> it's nearly 2:00 on wall street and 7:59 p.m. in brussels. the second hour of "power lunch" never waffles. i'm brian sullivan. mandy with us again. right now the dow is up a stunning 17 points.

oil though higher by more than a percent and a half about 61 bucks a barrel and gold is lower right now to the tune of 8 bucks per ounce, but we kick things off with a big housing alert and this has to do with all you renters out there and not only are there more renters in america but rent prices are on the rise almost everywhere across america with some areas seeing double-digit gains. let's get right to diana olick with more on housing and a side we don't talk about a lot. >> no we don't, brian. look. here's a number for you, $4,000 a month,y that the asking rent on that house. we tend to think as rentals as mostly apartment buildings but less than half of all rentals today are. apartment construction is booming but so is demand and that is pushing rents ever higher. nationally rents in may were up 4.3% from a year ago. we told you last week on "power lunch" that this was due to record occupancy in apartments 95.3%, according to axiom metrix and zillow is breaking down the

rent rise. take a look. not where you might expect. rents up over 12% in denver. nearly 10% in portland oregon 10% in kansas city. the highest gains, jackson, mississippi. of course, california is in there, too, but all prices are up there for any type of housing. now, this as rental surge is coming. 13 of the 22 million new households that will be formed in the next 15 years will be rental household. that's from the urban institute. higher rents will mean more americans stretching their budget for housing. single-family homes like this one are about 35% of the rental market thanks to investors large and small buying up distressed homes during the recession. a lot of folks thought they would be selling them off now but why would you to that when you're seeing these kinds of returns. brian? >> stick around for a sec. does this open up opportunities for housing investors? hey lot of people burned out of the market view it as a rigged game and buy homes to rent them

out. do higher rents make it better or worse for the housing investor? >> well, it makes it much better, of course, in the returns, but, remember home prices are much higher. when was the best time to buy? when all the big guys were doing it three or four years ago. that does not mean that you still can't get some bargains because the big guys are actually selling some of their portfolios to smaller to mid-size investors, and they are also lending to small investors to buy these properties, so renting, it's still a great investment to buy a rental home but your prices are higher. you should have gotten in three years ago when i told you to. >> should have would have could have. diana olick, thank you very much. let's bring in our very own steve liesman and a member of merrill lynch to talk more about that. steve, when we talk about rents some people say it's interesting. i own, don't rent. oer, owner equivalent rent. what is it and why do we care? >> i don't know how much background you want but there's a decision that's been made by

the economist with quotes around it not to put actual asset prices into the cpi or the consumer price index. the reason is because that's not really a cost of living. if you live in a house and your house is half a million dollars and it goes up to 600,000, that's not an increase for you. the way that we do that to measure actual housing cost is what we call owner equivalent rent, what it would cost you to rent a house of a similar size rather than buy it, and so what you're talking about and the significance here is rising rents will show up in the cpi and push up inflation. this is what the federal reserve wants, maybe not through this method or from this particular category here but this should end up supporting inflation here towardsled fed's 2% target. >> michelle, is that going to be the final nudge then? wages not up a lot but wages have starteded to push up. is this the rental and home price push be what pushes the fed to raise rates in september? >> i think it depends on why

rent prices are rising. part of the reason rents are going up as fast as they are because there's a supply shortage. just not seeing building pick up fast enough. we're still at arguably low rates of construction and i think part of it is also because you don't have that natural transition from renting to owning environment where the mortgage finance system is still impaired. credit is still tight, so the way i see it you do want to take a look at shelter. it's an important part of cpi, but i don't think it's indicative of a strong economy per se as much as it is indicative of a pre-mortgage and housing market. >> i want to weigh in because a couple of things that worry me is are people not buying homes. i know that some of the millennials, a lot, they prefer to rent fine but if they are not buying homes because they can't get mortgages that's a problem. if apartments aren't being built because you have an issue of apartment builders not being able to get financing, that's a problem. the market is going to

equilibriate if they are allowed to and if there's regularity issues here that's a problem. >> and also to what degree have builders and construction companies and developers focused more on luxury end of the spectrum, therefore creating or exacerbating a shortage of affordable rental properties? >> that's an excellent and brilliant and important point. you've seen a lot of buildup in single family higher end where there's greater income and wealth creation but when you look at affordable housing there's a lot of limitations and because shelter costs have gone up it's becoming a larger share of one's budget and actually creating a bit of a strain for consumers, so you can actually take the opposite end of the argument and say shelter prices are rising but not because of a strong economy or economic creation because of distortions in the market and that's a bit of a challenge. >> can i weigh in on that also guys, which i think there's a larger problem here from a macro standpoint which is a generation

of people not building equity in home values, and that's -- if they are out there renting and they understand the costs that they will be renting forever, never building equity then fine, you've made your economic decision, again, if they can't get into houses for a variety of reason losing an opportunity to build what could be an important part of a retirement nest egg. >> fair enough but a last couple of years a lot of that quote, building equity was not building equity negative equity and under water. homes are a lot more expensive to own than you think they are. >> that's true brian, i agree with that, but over time what we know is that things have come back. homes are coming back and ticking up each quart their we measure it in the federal reserve survey. >> is your advice to drain all that equity and buy a large boat? >> i think -- i don't think you need a large boat, brian. as you know i think you need a center console with a shallow draft then ables you to get into tight places where fish

congregate and improve your chances of catching that way. >> we love fish congregation the name of my new band. steve, thank you very much and michelle meyer, a new phraseology to go into the lexicon. stocks giving up their early gains but not before the nasdaq and russell 2000 touched record intraday highs again. should you be investing in large caps or small in this environment? joining us now kate warren investment strategist at edward jones and co-portfolio manager of the villory fund, a tale of two caps. >> kate, you're on the large side though arguably they are not cheap. >> absolutely but they are also not expensive. the price earnings ratio on large-cap tsx are 17 times forward earnings. historically when stocks were this that range they returned 7% over the next year. a lot more concerned about the valuations on small-cap stocks and that's why we suggest investors focus on large-cap

stocks right now, especially those are sustainable competitive advantages and sort of our better positioned in case the market gets a little more volatile. >> sandy, do you want to counter what kate was saying about small caps since you like them? >> if you go back to 1926 small caps have been 12% and large caps 10%. if you take more risk you should get more return and some other things, look last year the s&p did about 13% and russell 1000 did 3% so small caps have a bit of catchup to do this year. you see them return about twice the amount that the s&p 500 has returned so i feel good about that and i think when the headlines stop coming all about greece and they start going back to yellen and raising rates, and i think that ultimately helps this career with good economic data, then i think it's going to lead to a stronger dollar and i think you want to be in domestic small-cap securities for the rest of 2015. >> and you like sandy, a financial name kerney financial corp because you pick the small caps.

we know banks like to go up when rates go up but when i look at my screens all the small-cap banks are up 10%, 20%, some 0% just this year. are the runs already done? >> no look carney just like warren buffett like to buy things are a high margin of safety. just pout this bank last month, middle of may when it demutualized on a large public offering. it's only up about 7% from where we bought it but this is a small billion dollar bank that has 46 branches, 4 billion in total assets, and i think this is going to work out very well. the way this works is after a year they can buy back their own stock and will increase the book value and should trade at one to two times book value so i think you can get nice returns and in a rising interest rate scenario this should do quite well. >> you also like lkq, an auto parts company. ge has made big moves selling

massive amounts of massive or at least trying to. do you see a break-up or evolution of utx as part of your theseies? >> we certainly do. they have already announced that they plan to sell their or do something with their sikorski helicopter business because it has lower margins and it isn't contributing as much to its probably diversified portfolio as they would like. that would be something that helps create value and so we do think onted technologies is a company poised to do better only over the long term but even over the short term. the valuation looks reasonable and we think that the dividends are going to continue to grow at 10% per year. that gives investors good returns. >> and you also like visa even though it's also up already 32% in the past year. kate and sandy, good to see you. thank you for your type. all go to powerlunch.cnbc.com. >> what a few hours it's been for blackberry.

the stock is soaring in the pre-market after revenue surprised to upside and now blackberry shares are down. all in all, a 14% switch for the berry just today. what changed in the last few wiers? a few hours ago you interdude the ceo, hammered him a bit, investors didn't like to and what is the takeaway from that interview? >> my takeaway is that blackberry phones are declining a lot faster than blackberry expected and shifted their focus away from phones into software. what a lot of people are scratching their head about light now is how fast the -- not just managing iphones and antried devices. they need to get businesses to buy them. the question is how fast was the core business growing? a little buddy because there

were other gains. >> without getting yourself too wonky, if they are effectively not becoming a phone company go more into the software. air watch, you have it at work and protects the e-mail service and stuff like that. is this literally going to become a small enterprise software company? >> yeah. that's -- small enterprise soft wear companies. don't knock them. they can make a lot of money and can be pretty profitable if they are tubed correctly, and they want to be the one who is managing the mobile devices so your company knows where all the phones are, where the business' data is doesn't get into the wrong hands, activate and deactivate phones. >> john chen blackberry they would say to you, jon fortt, story, still a phone company. at the milken conference a couple months ago, great presentation and nice looking phones and for whatever reason haven't gained any traction. they won't be happy if you say

they are not a phone company. >> john chen told me in the interview he said we're not emotional about phones. i like phones have a great plan and i think he can succeed but look what he's doing financially. he's limiting his exposure to risk. black when blackberry was emotional about phones they opened themselves up to risk so if they were successful with a phone model they would reap enormous upside so even if the phone is successful the manufacturing partners will get more of that benefit but he's kind of hedging to the downside. >> up 11% before the market opened in part business of a cisco systems ip deal and now the stock is down 3.5% and a crazy day, a crazy couple years for blackberry. people have all kinds of bets on black pri to the upside and downside and when volume is low during times of trading that aren't regular, you can certainly see those spikes. bottom line is revenue and bottom line a bit disappointing.

the swings aren't as extreme as they used to be. >> a pleasure, buddy, thank you very much. let's set the people for the rest of your power hour. the big backlash in greece continues as the countdown ticks on and what to do if markets take a summer swoop. one big bond form starting to hold cash and later on three food stocks that i should say are delivering real returns. how food and investing trends may have done a big u-turn. it's part adrenaline and part adventure. it's part geek and part chic. it's part relaxation and part exhilaration. it's part sports car and part suv.

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welcome back. now to the latest developments out of greece and we're starting to get more details about the reform that the greek government is reportedly willing to make to help it avoid looming debt default and for those in greece those reforms could have a major impact on everyday life. michelle caruso-cabrera took to the streets to get some ongoing reaction to the unfolding drama this. past weekend she spoke with a ship engineer named theodore thalomis. listen to what he has to say. >> personally i feel confused because i don't see any results. >> what kind of work do you do? >> i am in shipping. >> reporter: what's happened to

your salary over the last couple of years? >> in 2009 i worked 12 months per year and now i work only three so totally i lose about 7. >> to taxes gone up? >> for example if you have a house you are a criminal. when you open the letter box every day, you don't -- this is a nightmare because you don't know what you found inside. >> would your life be better if greece left the euro? >> no. we have to stay in euro to fight inside and find solutions fighting inside the euro. i'm not a finance guy and i consider the situation here. i don't understand how they cannot see it. i am 50 years old 5 2 and let's say it's okay, but if the new generations they collapse inside and this is the end. >> michelle joining us now live from athens. you said he was not a finance

guy, but i'll tell you what, michelle michelle, in that 90-second clip he laid it out. things sum for him personally, and as bad as it is you're a criminal if you're a taxpayer basically but he wants to stay in the euro. >> yeah and it's a really tough trade-off and everybody is coming to grips with it right now because there are many many people who grew very concerned this week that the situation was so bad that they were going to have to leave the euro and then when you ask them are you willing to take on more austerity, you know their guys get big and say, gosh we don't want to but if the choice is and depending on where you are on the income scale, the working class still pretty much wants to stay in the euro it's tough. his salary is down 70% because he has far less work than he used to because in part greece is not necessarily as competitive as he used to so all the work he used to do is happening in other parts of the world like asia. >> and something else he said

about the texases and you ask some people why should i pay all my taxes? all suckers pay all their taxes because the other guy is not paying his. why should i pay mine? businesses whose job it is to cover satellites so satellites can't tell it's a pool because there's a swimming pool tax. tax avoidance is a problem in greece. >> tax avoidance has gotten very high. if you lived in greece you wouldn't pay your taxes either because you would know that the train system here employs more people than actually ride it. do you want to pay for that? do you want for people paying at 55 so some people say oh, it's justified because they don't think --

% %. if collection were more efficient and the spending more targeted and better i think they would get a lot more compliance. >> michelle caruso-cabrera in athens. awesome stuff. thank you very much. food stocks and which ones have been hotter than a 900-degree oven lately. stick around.

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it is time now for street talk. every single day we go through all kinds of analyst research to find opportunities for you, america. be grateful. first stock, white wave foods. now, this is already a hot stock. >> yeah. >> they are getting a boost from maxim research. the analyst there starting coverage with a buy and a $60 target so sees another 20% upside calling it expanding sales and good way to play the booming natural organic shift. they make the soy milk saldlk called silk. >> we have that in our fridge. second stock is amberella.

recently rated a buy. they say this is a great buy on the dip opportunity after the recent short selling report and believe they are well positioned to see robust earnings and sales growth, particularly strong sales in the new markets like drones and consumer security cameras. the target remains at $115 which is 15 higher than where it is today. >> growpro derivative play one of the most hotly debated stocks. jim talks about this stock almost every day because his viewers on "mad money" are calling in all the time. what about amberella. stock up 33% over 12 months. 3 and a half bucks below the current price and even with today's drop the stock is down already. analysts concerned about the

valuation of choice and slowing down in sales per room and rev par. more optimistic than most. average target price 58 a share. everybody is more optimistic than ubs. >> a little trivia. choice hotels currently three in manhattan. they put out a summer trend survey and they found that 36% of americans would want to travel over the summer with hillary clinton more than any other candidate. >> staying at comfort inns they own clarion, sleep inn and comfort inn? >> staying at choice hotels her choice. another call from ubs, this time an upgrade and it's at&t to a buy from mutual and this is also helping the entire sector for today. analysts citing valuation and expectations for high single digit eps growth and improving near term trends and a decline in the payout ratio. the target up to 34 and currently sitting around 36 so it's about 30% upside and barclay barclay's upgraded them to

overweight. >> and i did not know this until i looked on my compute they are morning. ate aid is up on a weekly monthly, quarter to date and weekly weekly, up in every single one of the time periods that we break them up. >> over the entire year up only 2%. >> and adeptis health a texas-based owner of about 55 independent emergency rooms around that state, colorado and other parts in that region. stock been hot, up 77% this quarter. bank of america and merrill lynch starting coverage with a buy anyway. a $105 target that implies 12% more upside. stock up 140% this year. do keep in mind bank of america and goldman led a recent stock offering, whatever you take from that. still a hot stock, emergency rooms. >> emergency rooms. always need emergency rooms. >> let's hope not. >> well it's life. sorry on that note. the final oil trades are crossing for the day.

how are we looking heading into the close? give us a little optimism jacky. >> hi there, mandy. after hitting an intraday low of $59.55 we're trading right now over $60 a barrel up very close to 61. there's three reasons why oil is supportive today. got those for you when "power lunch" comes back.

hi everyone. i'm sue herera. here's your cnbc news update this hour. hundreds of people rallying outside south carolina's statehouse calling for the removal of the confederate flag. this comes as the state's house and senate are due to go back into a special session to discuss it. governor nikki haley has already called for the removal of the flag. former national security agency contractor edward snowden calling for an international standard of protection for whistleblowers. he was speaking to members of the parliamentary assembly of the council of europe via video link from moscow. the united nations opening an office in seoul, south korea tasked with monitoring human rights in north korea. north korean officials and authorities say that move is a grave provocation and threatened unspecified retaliation.

lego wants kids of the future to continue having fun with its toy building approximate but not at the expense of the environment. it's announcing a plan to find sustainable materials to replace the plastic used in its bricks by the year 2030. it will invest more than $150 million to achieve that goal. and that's the cnbc news update this hour. back to you, brian. >> thank you, sue, very much. before the break we promised you three reasons why oil is higher. jackie deangelis, we want three. because that's a promise. you promised. >> hi brian, oil settling at $61.01. this is august wti. that's on the board right now, and the three reasons are actually quite simple. it may sound cliche but optimism over greece and strong pmi data out of europe is the first. the second is we're going to get an inventory report from the department of energy tomorrow. we are expecting about a 3 million barrel drawdown and finally the products rallying today pretty much on technicals at this point, but when the products go up crude oil goes up as well. what's interesting to note there

is that the price of gasoline at the pump is not rising. actually it's kind of flat lining about 279 according to aa is the average for a gallon of regular, and they are saying that because of the weather we've been seeing not so many travelers hitting the road so a couple of things to watch there, but those are the three reasons. back to you. >> 3 for 3, jackie. thank you very much. well rumor is they use oil for all those vehicles on the highway. now some of those vehicles are giant tractor trailer trucks and they can be scary to drive behind because you can't see anything very well and samsung is working to solve that problem and cnbc's own honorary safety captain eamon javers here on this very cool story. >> i need one of those little sashes for this segment and take a look at this video. this is video from samsung, from its samsung tomorrow website and what it shows is a new idea from that company. they are calling the safety truck. that's a video monitor on the back of the truck and the video monitor is hooked up to cameras in front of the truck so that drivers who are trapped behind it can see what's going on in

front of the truck. samsung making the argument here that it's not safe to pass if you can't see what's in front of that truck. they say this will reduce fatalities overall by connecting viewers in the back of the truck to what's going on in front of it. no information from samsung though on just how much this will cost and, of course driving experts are going to digest this one and take some time to look at it and decide whether or not this would create more distractions out on the road than it actually solves. ultimately though samsung says they will move forward with the process of getting permits and approvals and moving on with this idea. brian? >> all right. eamon, thank you very much. i'm going to cut you a little short because you've got a cool series so i'm going to tease it to watch more of eamon's trucking series "collision course." visit our website powerlunch.cnbc.com. >> markets seem hopeful about a resolution in greece but it is not a sure thing, is it so if there is more greece-induced volatility this summer what, stocks should you buy? dominic chu has been looking at some of those names.

hey, dom. if you take a look at the volatility in the stock market it's been pretty much within this range all the way back to february. you can see there. so it's leading some traders to think about whether there's more volatility ahead because we haven't seen any. greece may be one reason and the fed and interest rate and asked the guys on wall street whether or not there could be more volatility and some say yes. if you talk about the volatility story, it's unlikely that u.s. equities can sustain a breakout to fresh all-time highs without first cycling through a period of higher volatility. that's jim strugger, a derivative strategist anticipating more volatility. another guy anticipating more is a strategist over at bmo capital markets, bruins beleskey, friend of this show, of course. we believe increased volatility is likely to persist throughout the year and beyond. still things thinks are going higher but not without rockiness. how do you play it? they put together a list of some stocks that could be high quality earnings growers with

stable cash flows that might be outperformers if volatility happens, and, oh, by the way, they have a dividend yield of 2% or above. schlumberger and cisco and pfizer mandy, names that some investors like brian belski over at bmo are looking at to weather volatility. >> that's part of the story, isn't, it dom? more ideas, get them on cnbc pro on our website powerlunch.cnbc.com. >> time now for trading nation because traders trade better together and today let's get social because shares of facebook at an all-time high. it is one of the best performing stocks in the s&p 500 today alone so what is ahead for fb? let us ask stacey gilbert of susquehanna and stacy, you look primarily at options market. any clues from your market to what facebook stock may be doing? >> sure brian. if you look at facebook options, they are one of the most liquid options out there. yet that being said we are seeing bullish positioning. investors continue to think

facebook shares may go higher. a couple things about facebook. if we look out to september, the market's implying around a 25% probability that facebook shares are about $95 by september. similar probability but slightly less on the downside. second point to make about facebook here is the market is saying it's less risky than it has been in years. in options terms, what does this mean? if you want to protect shares and puts are about as cheap as they have been relative to stock price in years and more importantly if you want to position to the upside and you're afraid to buy stock, call options in facebook some of the cheapest levels we've seen here. >> rich ross, you look at the technicals, charts have to look great and up for a year straight and any indication of any kind of major resistance anywhere from facebook? >> brian, no there's not. i'm with stacey i love technology and love facebook. bring up the chart and i'll show you why this is one of my favorite setups. when we look at a year-to-date chart you can see the classic textbook pattern that's unfolding, well-defined coil or

triangle which is defined by a parent of higher lows and lower highs that energy is being stored within the pattern and just yesterday we get that breakout from the triangle. now the book tells us we want to trade strong in the direction of the break and that's exactly what happens today. we extend yesterday's gains with a 3% move taking out that double top around $85. we think that projects measured upside to 95 first with ultimate upside to $105 a share. we'd be a buyer of this stock on the breakout and any weakness pullback/consolidation in here. i like the name and i like technology. >> couldn't be more clear. rich ross and stacey gilbert, thanks very much. to see two more segments go to the trading nation website. there it is. go gaddy used to be known for the racy ads, but now the company is evolving. we'll go back out to the iconic conference in los angeles and a close encounter with not one, not two but three great white

sharks and see what this paddleborder did when we return on "power lunch."

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tomorrow watch the countdown for the top five states for business and the winner reveal and all 50 states by the numbers on topstates.cnbc.com. >> tomorrow on cnbc. well here's a big stock winner on the day. shares of greendot gdot solidly higher, up 38%. the same maker of pre-paid cards and re-upped the deal with walmart. green dot and walmart partners since 2007. this deal covers another five years. separately they announced the $150 million share repurchase program. greendot on the move. if you are afraid of the ocean, sharks or both this is probably not a story for you. check this out, a battleboarder along the california coast looks down and see three great white sharks below his board. he did not panic and calmly grabbed his camera and caught some amazing video. he said the great white sharks

were pretty docile and not scared at all. you looked at that and said that's not a shark. >> that's not a shark. i'll show you a shark. >> that's an appetizer. >> little babies, they are juveniles. those little babies wouldn't hurt you. >> now let's get back out to tyler at the icon at the iconic conference in los angeles. >> i rented "jaws" and that movie is still scary, particularly one scene and i won't spoil it for you. after a period of being a private company godaddy started a new brand course as a broad-based technology company, not just an internet domain provider and gorilla marketer familiar with the ads that they have run from time to time. marcus lemonis and i live at iconic in los angeles. pleased to welcome the founder of godaddy, the big daddy himself bob parsonsch the driving force at godaddy since its founding in 1997 and now a

member of the company. welcome. >> good to be here, guys. >> no more executive role. how good does it feel not to be an executive that have company, and more broadly we've been talking about it earlier today. would you rather run a public company or a private company? >> you know all i know is running a private company so, you know when it came to running a public company, that's like a fish out of water. >> yeah. >> so my deal right from the very beginning of acquisition or the stock sale to kkr in silver lake is i would stay chairman until such time as we became a public company and then i -- i would give that up and just be on the board. >> i don't know you well but the idea of quiet period and bob parsons would not go well together because you're a pretty outspoken dude. >> some people have said that. >> some people. everybody says it. >> yeah. >> everybody says it. what was the biggest reason? obviously we think about it all the time. what were the one or two things that really kind of steered you

away from wanting to be part of it, the control, the oversight, the style of management that we all know you have? >> well you know if -- it was all that marcus and, you know also it was encouragement from my partners. >> yeah. >> you know they knew that my skills were as a private company operator and not a public company operator although you know we developed enough rapport that had i wanted to be chairman at the time they would have let me do it but they sat down and explained to me exactly what my responsibilities would be and i said to them good point. i should resign >> you know, a lot of people here at iconic are entrepreneurs or want to be entrepreneurs. that is the story of your life. you started parsons technology. then you sold that but you taught yourself how to program. tell me that story about how you learned to program computers. >> well the deal was i was working for a company that bought leasing companies and on a deal with california.

hi time left over before the flight. i went over to the stanford book store and a book on programming a basic caught my eye. i bought that book and read it during my layover and wrote my first program on the flight and came back and the company i worked for had a computer terminal with no screen looked like a teletype machine. i got it to work and i became addicted so that's how it worked. >> and you say what about where you learn the program? >> i learned how to program at stanford. >> because you bought the book at the stanford book store. >> give credit where credit is due. >> yeah. >> one thing that always face meeted me is people are always concerned about the type of advertising you did at godaddy but on the flip side you and your wife renee have done a lot in philanthropy. how do you balance the two worlds being so extreme on one end and being so humble and generous on another? >> well you know i've never seen myself as being that extreme with the advertising. you know, the advertising, bad advertising is like a fat guy at

a party, you know. he doesn't offend anybody. he's always smiling but he doesn't get any action right? good advertising is -- gets some action, is always controversial. >> do you regret any of it? any of the advertiseing? >> it is a little too mild. >> a little too mild. >> obviously mild is not your cup of tea. you're out doing a lot of different things and we thank you for all the insight that you have being a great entrepreneur. motorcycle dealerships, golf clubs, golf courses, real estate. anything we should know about that's coming that you want to tease us with? >> well look for us for more and more philanthropy. we just agreed that we would help wounded marines this year and put up $10 million to see if the semper fi fund could much that $10 million so we can raise 0 million this year instead of 12 so look for that. >> and you yourself a purple heart winner as a marine in vietnam. >> i was. >> thank you for your service, by the way. >> you're welcome. >> and the world's largest harley-davidson dealership. >> you and i are going. >> he is opening it later this

year. what has it got? >> a wedding chapel, a tattoo parlor, a 60-seat movie theser. >> tell us all of it. >> and a lingerie boutique. >> and you can get a bike that's fantastic. bob, thank you very much. >> real pleasure. >> mandy back to you. >> thank you, brother. >> i'm not sure that mild fits someone who wears a big diamond in their ear, and a checkered pink silk jacket great style, dude. >> you're just jealous, mandy. >> that was for benefit of the radio listeners who couldn't see the full deal. tyler and marcus thank you very much, and cnbc is getting ready to unveil its top states for business. here it is. if you can figure out the answer, well you know try and work out which state is number one. if you can't figure it out stay tuned for some hints. we'll help you out a little bit when "power lunch" returns. i'm trying to work it out myself. verizon say neversettle. t-mobile agrees.

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they are america's top states for business. cnbc's ninth annual ranking. this year's rankings putting special emphasis on labor forces. businesses who struggle to find

workers. >> we do this every year to try and hold the states to their own standards. as you said there is an emphasis on work force. that's because that's what the states are talking about. that's how our study works. we give it more weight if more states are talking about it. here is how this year's study breaks out. it's the year of the worker. companies are going where the skills are. >> the assurances we got, if you come and invest here we'll have the work force for you. >> work force is the top category in top states this year. we measure the cost of doing business. we look at infrastructure. the strength and the prospects for the economy. we measure quality of life, technology and innovation. education. business friendliness the cost of living and access to capital. >> we went through all this

fast. we've got our methodology on topstates.cnbc.com. a lot more about the issues of competitiveness before we get into our countdown and unveil the top state where i am tomorrow. where am i? by popular demand we are starting our hints early. here is the first one. a long journey starts here. see what you think about that. we'll have another hint during the closing bell later today. our big top five countdown starts tomorrow morning on "squawk box." we want to hear from you. >> your hints are diabolical. look forward to it. one food category is dominating the top restaurant stocks so far this quarter. we'll tell you what it is. whether you should invest in it.

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welcome back to "power lunch." we are following this developing story. etsy confirming they are removing confederate flag items from their marketplace. etsy says their policies prohibit items or listings that promote, support or glorify hatred, these items fall squarely onto that category end quote. there are also reports out there that amazon is going to be

pulling confederate flag merchandise from its sites. once again, momentum is building for various retail outlets to stop selling confederate flag items. back to you. >> thank you very much. >> the hottest food trend appears to be good old-fashioned pizza. take a look at our not quite a pie chart. pizza hut, parent yum! brands and domino's has been hot but no stock as hot as papa johns. it is up 33% year-to-date and the second best performer of any major restaurant over the past 12 months. second only behind denny's. chris, in one of your reports, you suggest that papa johns is the best technology play in pizza what does that mean?

>> one of the trends we are seeing is their design to order and pay for their pizza online or digital platform. papa john's as well as domino's invested heavily providing that service. that has attracted consumers to their business. people are still coming for the pizza, but at the same time, the convenience of ordering a payment that papa johns and domino's provided created a lot of excitement among consumers. that's driven repeat visits and higher tickets, as well. >> which is great the stock is up 75% over the last 12 months. is it still a good investment? this is not the fastest growing business in the world. >> 60% of the qsr pizza market is dominated by smaller players and independents. papa johns only has 7% 8% market share. there is a lot of market opportunity for papa johns as well as domino's. one thing we've done is showed

the smaller players are having difficulty providing the type of technology support or digital platforms to order and pay for their food online. it's actually creating a little bit of a barrier for mom and pops to provide this service that consumers are telling you they want. >> which pizza stock do you least like? >> we've been recommending both stocks. the expected return might be higher for papa johns at this point. we think both names are great core holdings. they have different market caps and different financial structures. they also have a different approach to using technology. depends on the investor. we think both are great ideas. >> chris, we appreciate your time. thank you very much. >> thank you. >> what's on "fast "mad money"" tonight? >> i'm not sure. i'm not hosting it tonight. >> what's on "closing bell?" what's on "squawk box" tomorrow

morning. >> more markets. >> see how i dug myself out of that erroneous tease? >> you are very good at shoveling. >> initials are b.s. made for tv. thank you very much. the "closing bell" starts right now. welcome to "closing bell." i'm sara he's neneisen in for kelly evans. >> i'm bill griffeth. facebook has been popping after the company unveiled new interactive advertisements. we'll have details on that. whether it will make it even more profitable. up 3.25% today. >> nasdaq hovering around new highs. russell 2,000 in record territory.