happy to join you. >> nicest thing anybody has said to me all day. >> you had a long day. >> dow is down 55 points. oil close below 60. "closing bell" starts right now. welcome to "closing bell." i'm kelly evans at the new york stock exchange. >> i'm bill griffeth. major news in health care. supreme court upholding obamacare federal subsidies this morning and breaking just over an hour ago, whether it's related or not, aetna is reportedly now closing in on a deal to acquire humana. we'll tell you what this means for the rest of the insurance space. >> huge moves in hospital stocks

soaring. hca up almost 8.5%. bond guru scott minard will join us. you see new signs opec is becoming less and less relevant. its market share hitting a ten-year low. what impact this could have on crude prices which are down roughly 1%. >> the cfo raising the minimum wage for its employees and having so much success, he is going to do it again. who that is coming up. >> let's get to the top story of the day. we start with moves in health care space. bertha coombs has this back story at cnbc headquarters. finally getting talk of a possible deal now. >> we are. almost a week after we started talking about this. today's supreme court decision eliminates lingering uncertainty in the health care sector.

could very well pave the way for more consolidation of the insurers and others. humana shares are soaring on reports that the medicare advantage could be close to striking a deal with aetna cigna also said to be interested. aetna up 3%. humana up 7%. an hour ago we got the big spike on the news. right now we've got unitedhealth. that's the big gun with 40 million members. exposures across commercial the exchange markets, medicare and medicaid. not to mention services. the other four are looking to combine in some way in order to get that same type of breadth and scale. it's unclear the value of the deal humana and aetna are talking about. they would certainly be in contention with big size. we know already anthem has a bid of around $54 billion including debt for cigna with up to 50% leverage on that offer. s&p put cigna and anthem on

credit watch negative because of that. analysts say these deals are so big they have to be levered. they will also encounter justice department scrutiny but the doj has already signed off on big hospital mergers. >> it's possible they might look at what is happening on the other side of the table. if they are approving wider size deals, they might be more willing to approve insurance, as well. >> hospital stocks on the back of the supreme court ruling are seeing a huge relief rally. we've got hca, universal health at all-time highs. the supreme court really lifting a cloud of uncertainty. david pickney the colleague says you might see more consolidation among hospital players as they look for less traditional kind of mergers to try to move

forward as they see more and more government health care in the form of medicare and medicaid and trying to find new ways of upping their chances of being more profitable. >> a lucrative area for them. thank you so much. for more joining us is our analyst from morningstar. this leverage point is important. are you expecting to see a flurry of deals getting done? >> definitely. i believe the aetna/humana deal is the first domino that will fall. that will pressure cigna to make a deal with anthem or seek help from unitedhealth in order to grow its own size its own membership book on the scale of a potential humana/aetna tie-up. >> they are trying to achieve

greater scale with these tie-ups. will it mean higher or lower premiums in the aggregate? >> the theory goes the bigger these players are, the more efficient and cost effective they can be. thus this should hold back premium increases and growth for the u.s. consumer. >> will they buy that? >> i believe regulators and federal government recognize the bigger entity it is in terms of being a payer, the better off the consumer is in terms of getting better pricing from hospitals and physicians overall. >> we have the ceo of mount sinai on the program last week and was explicitly against saying it was going to raise their cost. >> the costs hospitals are facing are significant. we'll see pressure once these insurance companies become big enough and they establish more of a value-based reimbursement scheme because of their size.

that will pressure hospitals overall. it makes perfect sense to insurers longer term. >> all these stocks have been going higher for a few months now are they getting a good price at these levels? >> i believe all these players are bidding with significant premiums embedded within their pricing. if i was a shareholder of all these firms, i would look at these deals as being excellent. i would jump on them right away. >> thanks for joining us. larry kudlow and barney frank will share their perspective on the supreme court decision this morning and justice scalia's todaying descent. >> let's get to the markets today. our closing bell exchange.

dennis gartman, we have ben willis with us today and rick santelli in chicago. ben, we had a sell-off here in the last hour. a lot of traders looking at each other like what was that about? are you hearing anything? it's come back. we are down 35 points. we were higher earlier. >> it's the computers starting to read that the imbalances for sale for the closing bell took us through technical levels 21.06 on the s&p or a lot of the intraday traders trade the spiders that broke the 2110 level. you also start to see them pair off. that's why the system is in place. you'll see the market come back a little bit from that. >> we are seeing another round of headlines maybe about greece. how are you trading that event? >> the headlines in greece are different every two hours. wrong. every two minutes.

wrong. every two seconds. there is a new headline that comes out. somebody says something silly. someone says something bright. the next thing you know the euro is under pressure. it seems to be under pressure. i said this before on the show i think germany wants to keep greece in the euro. if i were the greek prime minister i would have left long ago. i think germany needs to keep greece in there. they will do everything to keep them in. the euro with greece in it is a much less valuable commodity than the euro without greece in it. i think we are going to see the euro trading well under 1.10 when there is some resolution. what would you rather have a euro that has greece in it or euro that has greece out of it? i would rather have a euro with greece out of it. the euro goes lower. >> deadlines have come and gone over the years for getting a deal. we have a timeline to meet this

time. there is talk it could come sunday night. there is a deadline for a debt payment on tuesday at the end of the month. let's assume they get a deal. let's assume lucy doesn't pull the football from charlie brown this time what do you think the market response would be? where is the best opportunity? >> probably the european stock markets. then the confusion over the circumstances will have been lifted. any time you lift confusion, confusion breeds contempt as i said. any time you reduce the amount of confusion in a market you'll probably get a rally in stocks. i think you can be a buyer of european stocks. i don't think you want to be a buyer of the euro. you want to own european stocks and be a seller of the euro. >> dennis you said when you asked people they wanted greece to stay in the euro right? >> yes. >> just wanted to clarify that. >> absolutely. the europeans generally would much prefer and germans absolutely prefer keeping greece in the euro.

german leadership german populous might have a different opinion. german leadership wants to keep greece in the euro. >> rick santelli we haven't talked about the ten-year lately? >> it's not moving out of a range. the other way to look at it it remains close as do the 30-year to the high closing yields of the year. it becomes a game of forget the fed a minute. there's a lot of adults out there trading. it's not only algorithms. when you look at personal income and spending it isn't one of these squishy points. we could go through all the different surveys we pay close attention to whether purchasing manager, but it's the fittest that survived rough times. many of those are biased. a lot of purchasing managers that survived have a built-in optimism because they managed to navigate tricky waters.

this number was very impressive. if there is a debate as to whether we are growing or expanding, rates are too low. if we err towards strength in the economy, doesn't have to be on all cylinders going 100% that is working its way into the market. i don't think many believe we'll see a rate hike in september. many are more nervous than maybe a week ago. >> there is a rebalancing tomorrow. russell indices. what do you expect to happen? what will this mean for the market over the next several hours? >> there will be trading ahead of the imbalance by sophisticated investors who have the understanding of what's going to be rebalanced. they will be trading in anticipation -- >> we could get volume title? >> absolutely. i certainly hope so. tomorrow, of course going on to the closing bell will probably see volume i would guess

somewhere grow four to five times to the daily volume to what traded on the day. >> all right. >> price action remains to be seen. >> most of the russell, the size of the russell includes smaller cap stocks which tend to move with any sort of indication. i think you'll see volatility intraday pick up significantly, which is why the vix was picking up today in anticipation. >> gentlemen, we'll leave it there. appreciate it. a little more than 45 minutes to go in the session with a lot of news to digest. dow is down 45 points. s&p down two and nasdaq only down about four today. we have wall street guru scott minerd with us. he'll state his case. he oversees $240 billion in

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transunion up sharply on its first day of trading here. >> bob pisani is tracking the action. >> biggest day of the year for ipos. eight priced. only a couple of winners. transunion was one of them. trading at $25. they tried going public in 2011. they didn't make it. goldman bought them. big winner today. the other is glaukos. huge move up here almost 68%. eight ipos. not all winners. generate maritime crude oil transportation, they priced at $14. that was well below the price $17 to $19.

opened at $12.75. trading around $13. we had eight ipos two big winners. two companies didn't make it to market. the rest were so-so. i'd say buyers are pushing back on the ipo market saying frankly, there's more product than we want right now. they are being selective. this is a very good sign of the fact they are pushing back and there's no bubbles in ipos. you want people saying we don't want this stuff at this price. it is the sign of a very healthy ipo market right now. back to you. >> thank you so much, bob pisani. our next guest warning of market complacency. saying the u.s. could be in for meaningful turbulence this summer. >> he just finished up at the fed where many wall street p.m. investors like himself gathered.

scott minerd. good to see you. welcome to post nine. >> thank you. appreciate you having me. >> there's the u.s. economy, the world economy. let's start with the u.s. economy and how the markets are reflecting that right now. it seems like we are starting to pick up pace here. >> i think so we had the cold winter weather slump in the first quarter. the rebound has come just like we expect. we saw consumer spending numbers this morning. i think the economy is doing just fine. motoring along. >> you seem to agree with carl icahn that the markets are overheated here? >> i'm starting to see signs of disturbing behavior in some of the underlying things i watch in the equity markets. divergence of transports against the dow. that's been going on for months. i usually don't hang my hat just on that but then now we are starting to see the breadth of the new york stock exchange advance/decline line rolling over. those are good signals that the

market needs to stop and pause to digest some of the supply we've gotten. and bob pisani's comments about the two successful ipos and the other six that didn't do as well. >> his argument it would only be if you had everybody hitting the tape popping 50% day one you would think we are in an overvalued market. these are struggling to get off the ground. >> there is a difference between valuation and market timing. markets become overvalued and get more overvalued. we are in a bull market. valuations are high. that isn't enough to stop and advance. which are probably still in good shape. near term it's feeling too frothy. >> presumably the fed started raising rates within that two-year period though. does it matter when it happens? what do you think the markets will do about it? >> whether it's september or

december, i don't think that matters very much. i think the markets are going to discount that well before it happens. i wouldn't be surprised if we did get some sort of a pullback in equities this summer in anticipation of that increase. on balance, history shows us that as the fed starts to move markets generally start to rise again. i think we probably have another 20% or so in the advance of this bull market before it's over. >> you are on the fed investor advisory committee. what are you advising the fed? where should their attention be? >> the things i told them is i think it's important that they meet investor expectation. we spent a lot of time getting used to forward guidance. the fed would like to get away from that. if the fed starts to deviate too much from what it's leading people to believe -- >> wait a minute. you told the fed they should

meet investor expectation. that is rich scott, don't you think? >> how so? >> you are saying we heard this time and again, right? the fed is too hostage to the markets, too obsessed how reaction will be and whether markets will drop 2 or 3% and it should be its own agency and not care. >> right. i think right now because they've gotten us so hooked on giving us information, if they do something that is out of line with what they are saying it would be better if they would slowly withdraw these forward guidance comments and get out of the business of forward guidance. near term i think they are still a hostage to this. one thing i did mention today is that this idea we are going to have a slow increase in interest rates over a long period of time could be setting us up for a period like 2004 to 2006 which allowed certain asset classes to become overvalued to the point that we had a problem later.

>> which brings me to my question meaningful to investors, where are you going to make money? if you see another 20 months of this bull market? >> right. we figured out financials are going higher if rates go higher. >> there are still opportunities. home builders. we are just getting started on this building boom. we saw home builders this week make a big move. lennar had great earnings. home builders is a great place to be. there is still opportunity in financials. people who have expected the big bounceback in oil, when you look where oil prices were a couple of months ago at $45 a barrel and today we are around $60, the major oil companies are in many cases trading at a lower price. if you do believe this is the beginning of the rebound in oil, oil, integrated oil companies are a great place to be. >> only if you believe that? >> only if you believe that.

the question is is that believable? i don't know. >> nor does anyone scott. it's going to be one of the main questions for this economy. thank you for joining us. >> thanks. >> scott minerd. 40 minutes to go in the closing. i love the comments, the building boom is just getting started. >> up next going beyond book shelves and bedroom sets. ikea's chief financial officer will be here to tell us why the furniture retailer is increasing its hourly wage at its stores for a second time in a year. also ahead, michael fredericks revealing his playbook. built my business with passion. but i keep it growing by making every dollar count. that's why i have the spark cash card from capital one. i earn unlimited 2% cash back on everything i buy for my studio. ♪ and that unlimited 2% cash back from spark means thousands

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35 minutes left and the dow is down 40 points. there is the heat map with all 30 components. eight of them are positive right now. >> caterpillar the biggest laggard. we've got nike doing well and expected to post earnings after tonight's close. sara eisen standing by at the exchange with the numbers. >> nike is lower. almost a full percent ahead of this report after the bell.

it's been weakening in the last few sessions. but nike stock is up 37% over the last 12 months. 9% this year alone. way outperforming the broader market. wall street is looking for solid numbers from nike due to healthy demand for athletic apparel and basketball shoes. the jordan brand has been very strong and e-commerce sales. for nike it's all about futures orders. that's the geographic breakdown, about what nike sees ahead. look for particular strength in china and europe where it's been eating into market shares of rival adidas. also the strong dollar impact especially against the euro. last time this weighed on sales heavily. this quarter it shouldn't hurt as much. and comments we get from management on the call about the recent marketing deal with nba and sponsorship of the women's world cup. both are seen as potential growth drivers for nike.

our partners at kensho looked over the last five years and found out when nike disappoints it gets punished hard. on average down 9% but has only done that twice since 2000. on average, nike tends to beat and tends to have a solid beat. it's beaten 19 of the 21 quarters we looked at. that's 90% of the time. good track record there. we'll share the numbers as soon as they break after 4:00. back to you for now. >> thank you so much. >> staying on the retail ken langone was outlining his biggest fear for the u.s. economy. >> the biggest challenge to america in my mind is income inequality. it has the potential of destabilizing this country that. it's one thing i worry about. that's the one thing we all need to address. >> one company that is addressing that issue of income

inequality with its own strategy swedish furniture chain ikea. it raised its minimum wage by 17% last year and it's been so successful, in its view the company is going to do it again. up another 10%. tailoring each store's increase to the cost of living in that area. >> here is ikea's u.s. chief financial officer rob olson. welcome to the program. >> thank you. >> what explicit financial impact have you seen from raising wages? >> what we've seen beyond the altuistic side is decrease in turnover. we've seen a 5% reduction in turnover. a great response from consumers seeing we are trending ahead of the sector and picking up speed as we go throughout the year. >> you opened a couple new stores. the applicant pool was big.

>> it was fantastic. since last year's announcement we opened up the two stores. the applicant pool was much ahead of expectations. we have a store in st. louis. we are seeing the same response. our expansion plan is growing as we speak. we expect the same response going throughout the u.s. >> better retention and better traffic because of the pr you've gotten what about actual cost raising wages. we heard walmart may raise prices to offset what it's done. this must have had an impact or are you saying the entire cost has been offset by benefits. >> the benefits we mentioned are one. over the past five years we focused on operational cost structure throughout. nationalizing purchasing instead of purchasing location by location. taking advantage of economies of scale. being more effective and efficient in day-to-day operations. we've been able to reinvest in the co-worker. >> you've done it two years in a

row now is third time going to be a charm? >> every year we'll evaluate our wage structure. we take input from the competition and local legislation. we are going to evaluation it and take the necessary steps. >> if raising wages works so well, why doesn't anybody doing this till now? we had years and years of experimentation. is it you have to compete against people for workers because the economy is better? why are we just discovering this now? >> great question. i can't speak for others. we always used to focus on competition and put more energy on the benefit side. now we are trying to balance it with both benefits and wages. it's better to look at the local cost of living and take care of the co-worker. >> thank you for joining us. >> thank you. time for a cnbc news update with sue herera.

>> the defense in the trial of james holmes has begun presenting their case. they are aiming to show he was legally insane when he opened fire in a packed movie premiere killing 12 and wounding 70. a psychiatrist testifying he was psychotic and suffering serious delusions. >> california's assembly approved a hotly contested bill requiring that nearly all public school children be vaccinated. the bill aims to increase immunization rates after a measles outbreak singled so many people. >> vandals spray painted "black live matters" on a monument in virginia. >> 42 million americans will travel 50 miles or more this fourth of july. the most since 2007. it's citing an improved economy and lower gas prices for the surge. that it's news update.

probably helps it's on a friday so it's a three-day weekend. check the car before you go. don't be on the side of the road. >> are you hitting the road? >> no way. i don't travel on holidays. no, no no. >> nor am i. >> we'll all sit home and watch the cars go by. >> you've got it. >> 30 minutes to go until the close. the dow is down about 45 points. red arrows across the board. >> greece, the fed, two wild cards could upset the market the second half of this year. michael fredericks manages nearly $12 billion. he'll give us his game plan for the second half of '15.

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steve grasso was telling me how important this last half hour of trading is. we'll address that. with a trader who came in from the cold. do you know how warm it is outside? you look like you're dressed for the arctic? >> you heard of an old soul? i'm a cold soul. >> warm heart. >> always. >> how much are you looking to this rebalancing tomorrow? >> huge focus. >> we are going to see

volatility the next half hour. >> goldman put out a note this morning saying they expect between quarter end and month end maybe about to the tune of $12 billion coming out of equities due to their outperformance. you are watching that. russell rebalance tomorrow. you have to really pay attention. professionals in the space, professionals on wall street. this is their main focus this week. more so than greece. greece has been dictating market direction. we saw a couple of negative headlines on greece. traded down to that 50-day moving average. >> assuming they get a deal let's say a miracle happens and they get a deal sunday night or by the tuesday deadline what's the trade? >> i would assume it's a standard trade we've been dealing. with everything depends on the dollar. if you are looking at dollar/euro. if you are assuming they get a deal would you say the euro weakens and dollar strengthens.

>> any levels you are watching? >> right here. 2106. look 2094. that is your 100 day. i expect weaker markets at least today and tomorrow. >> thanks steve. stay warm. health insurers are rising today significantly after the supreme court decided to uphold obamacare subsidies. getting another leg up news aetna is closing in on buying humana. dominic chou is taking a closer look at humana. >> it comes down to different things. the health insurance industry is ready for consolidation because it means it's about how many are getting older and the millions on or will be on medicare part c. private health insurers have millions of customers which could be added to the other millions of customers from other insurance companies to bolster

their ranks. end of first quarter humana had 14 million members. they had additional 7 million in speciality products. 3.2 million of those people are enrolled in medicare advantage, which is a private provider of hospital and doctor-related services that the government programs normally would cover. those insurers get reimbursed by the government for those services they provide to members. the more people that enroll the more assured income these insurers get. that is a big reason why all the big guys have been reportedly circling around each other for takeovers. aetna perhaps looking to buy humana. anthem going after significant nachlt unitedhealth going after aetna. it's one large brouhaha in a battle for supremacy in a world of medicare-related dollars and how much they can get paid in government reimbursements.

>> thank you very much. stick around next hour of "closing bell." larry kudlow and barney frank will be here. >> the second half of the year is just around the corner with lots of wild cards in play. the greece the fed, how should investors be preparing themselves? joining us is michael fredericks managing director and head of u.s. asset allocation for blackrock portfolio strategies group. welcome to the program. >> thanks. >> let's begin with what you see as the biggest opportunity for investors here. >> the reality is when you look at the second half we have to measure our expectations a little bit. we think most asset classes are somewhere between somewhat expensive and expensive. i think you have to couch your

expectations. we do think things like high yield bonds are still a good source of consistent return. equity sentiment, equity earnings revisions have been severely negative. at this point what the fed told us you've got runway to take equity risk here. that said we don't think it's a double digit second half. it's more of a grind it out second half. >> do you agree equities may be expensive, but you are still going to high yield. he is not. he thinks that is also expensive territory. >> it'sto over generalize. i'm not talking about triple-c rated bonds. when you move up in quality, if you go shorter duration that is a safe place to be within the market. you can withstand short term

rate shocks. there is plenty of room for spreads to compress. >> so many of your clients are asking you where do i go for yield now? if it's time to get out of some of the higher yielding parts, where do i go? what are you telling them? >> we've been preparing for this for quite a while. as we move into a rate hike getting in the cycle, and i hope we get there soon. you have to be concerned about the performance of high dividend yielding stocks. you'll make money there over time. there is a risk in the short run when investors actually see the fed move some of these more rate-sensitive segments of equity and bond markets take lumps. our positioning changed over time where we moved out of these

more interest rate-sensitive segments. on the equity side we preferred doing covered call writing. going shorter duration and up in quality in fixed income is a bit of a safe haven is the way we think it makes sense to bide your time until a healthier environment. it will be a great time to take risk. we just don't think now. >> michael fredericks at the morningstar conference thanks for your thoughts. >> thank you. >> 17 minutes left in the trading session. the dow is still down 60 points. >> i'm still thinking about covered call writing on cyclicals. >> opec for years had its way with the world, but not so much lately. market share dropping to the lowest in a decade. jackie deangelis looks at the

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welcome back. gas prices remain lowest from a year ago. >> our good fortune with low prices has not been a benefit for middle eastern cartel opec. its strategy to endure low prices to maintain market share is not working. jackie deangelis joins us with what opec's options are. >> good afternoon. it seems they were choosing a strategy to continue production and with stand lower prices. that doesn't seem to be a strategy. it appears the only option. buried deep in opec's 2014 annual bulletin is an admission its market share shrunk to the lowest in a decade. this strategy appears to be the only thing the cartel can do at

this point. we talked to a trader who is explaining this to me. he said this is a watershed moment for the oil industry. opec was always the swing producer, the one the global markets looked to. now we are looking at shale. what is interesting about shale, they are not being squeezed the way opec would hope. the eia reported production was back up over 9.6 million barrels a day. that is a pretty staggering statistic when you consider oil's trading at $60. these shale companies are not being squeezed. at this point, we are looking at short term dynamics and long-term dynamics. short term we could potentially go higher because of summer driving demands. you have a converging 200 day and 50 day moving average. longer term we are looking at prices probably going to bounce around and drop a little. it's all going to be up to shale producers to control the market. this game could turn. this game of chicken opec created could turn and shale players could potentially put

the squeeze on the international cartel. where did opec lose share? they lost it in asia which is important in the demand equation. and of course here in the united states their exports have been falling steadily as our production is rising. this isn't just a second half story, this is a long term sea change for the oil industry. >> so the death cross is when 50 crosses below $200. what happens when it goes the other direction? >> golden cross. >> i knew you would know that. >> let's double check that real quick. we are down 58 points. s&p giving up five and nasdaq eight. >> still ahead, the supreme court upholds obamacare. barney frank and larry kudlow both obviously have started without us. they will look at what the decision means for consumers and the economy still to come.

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one of the laggards in this market have been the

transportation stocks. that's usually not a good sign down the road for the stock market and the transports are lagging once again today. down almost a full percent. >> let's get more from bob kaiser from s&p capital iq. welcome. >> i think it's indicative of the macro adjustments the market has been going through. this is partially about crude oil. it's about a lack of momentum in general to the up side or down side for the markets. different sectors are adjusting to things that occurred this year. before i came over to the exchange, we were trading at the same levels back in february 20th. the market is dealing with a lot of uncertainty near term around greece, but i think bigger picture, a lot has to do with the federal reserve and the fact that the stock market s&p 500 at 17 1/2 times earning is fully valued. >> carl icahn made that point

yesterday. a lot of people saying we are fully valued here if not expensive outright. >> a lot of us have been talking about valuation since the beginning of the year. we did a study and looked back to the 1930s. we only found five instances on a forward pe where the s&p 500 traded above 18 multiple. all five of those instances was associated with recession eventually. the last two was the tech stock bubble in 2000. the housing market bubble in 2007. i'm not saying there is a bubble in the equity market far from it. the market is priced at a point where it needs an ideal outcome in terms of the outlook for the economy going forward and federal reserve has to get the policy mix almost perfect. >> just real quick word, what areas do you like best here? >> the problem is if you look at all ten sectors, they all look stretched. especially consumer discretionary has been coming down for the balance of 2015 and

2016. trading closer at 19 multiple. >> thank you so much. >> we'll get earnings as well from nike after the bell. >> we'll come back with the closing countdown. >> after the bell will nike do it? those earnings to hit in a couple of minutes two weeks after the billion dollar deal with the nba. that draft is tonight. some analysts think nike could fly to all-time highs. you are watching cnbc first in business. it's part adrenaline and part adventure. it's part geek and part chic. it's part relaxation and part exhilaration. it's part sports car and part suv. and the best part? the 2015 gla. it's 100% mercedes-benz.

you see the lagging that occurred since the all-time highs in march. sideways for industrial average but downward for the transports. everybody's got their theories about why and what it means. few people expect this to be resolved positively. it is a troubling sign to keep an eye on here. earnings coming out after the close tonight. nike and micron technology. nike expecting earns of 83 cents a share and micron expecting profits of 56 cents per share. both of those stocks are trading lower. i'm vamping because pisani what

are you working on here? >> turn over here. >> now i set it up i'm supposed to go to dom chu. >> take a listen to this. we have more trading volatility curves. animal health sciences giant zts halted for trading. they were up about 11% before the halt. this is on dow jones headlines that valeant has made a preliminary takeover approach of j zoetis. this is from sources familiar with dow jones. back to you. >> we were just going to mention. >> here is zoetis. pet's pan to the crowd here. the stock has been halted. i don't know if the designated

market maker there will be able to open this. >> he is going to stay there with these people until the company makes some formal statement and try to open it. they'll be here after the close. they will wait a certain amount of time and be in touch with the company to see if something will happen. more on that as soon as we've got it. right now closing bell. >> second hour of "closing bell" with kelly evans. >> thank you, bill. welcome to the "closing bell." what a news day we had. let's look how markets digested all that and finish upped the session. decline of 73 points for the dow jones industrial average following yesterday's declines. that puts it below 17,900. that is despite a nice rally. s&p 500 down about six points. broad market index just above

2100. nasdaq down about 0.2%. joining me this afternoon, dan greenhouse on john fortt as we await earnings. also "fast money" trader guy adami. welcome. guy, why do you think this market which was up 70 points reversed that and then some today? >> gave up the ghost. i think the comments out of -- everybody poo-pooed the carl icahn comments yesterday. i just heard you having a conversation about the continued weakness in transports. i believe people are starting to take notice of. we are at the lowest level we've seen in some time. seemingly wants to trade down to the 1.38 level we saw in the fall.

>> transports are buffeted by things happening in the oil patch, airlines and what the deal is in their sector. are you concerned as everybody else about their weakness? >> that is an argument we subscribed. there are things that work in the airlines and weighing on the stocks. clearly, you have to be concerned. the index is breaking down to lower lose today. it took out what was support in previous sessions. in that regard you have to be concerned. traditionally why you look at transports, they are telling you something about the economy. >> capital markets are wide open for deal making. let's get back out to bob pisani with more in this deal for zoetis. >> this is what happens when the designated market makers are involved. zoetis was halted on a bid from valeant. stock was trading around $51. it moved immediately at $55.

that hit a trading halt as we were going into the close. the question was could they open the stock going into the close? after it was opened at $55. will close that at $55.38. the key thing is the stock was roughly $51. it was halted at $55.37. then it opened they closed it in a single price at $55.38. there was a clear move up of roughly $4 in the stock. this is what happens here. they had to figure out the correct price just going into the close. basically, it was right around the price where this stock was halted. again, that is a volatility halt. they did a good job getting the stock back open at the close. back to you. >> thanks. we know bob will be watching that. that is the least significant thing happening in the health care space broadly today.

obviously the supreme court this morning willing to upheld subsidies from obamacare and the effect on hospitals was immediate. huge increases in tenet health and hca. and the spigots turned on for big deals in health insurance space. >> when the announcement came out, predictably the hospitals reacted accordingly. i personally own community health. tenet healthcare were up 8% 12%. they are affected to a smaller degree than in a direct fashion than the hospitals. some of these names have to merge to achieve some of the theoretical goals of obamacare. >> we are waiting from earnings from nike and micron. how important will micron results be?

the larger names have been how shall we say, flattish? >> flash memory has been having trouble, whether micron or sandisk. i don't know you can read across broadly into tech how micron performs. it's an interesting data point. particularly if they have things to say about the different companies they are supplying, whether an enterprise storage or on the consumer end. >> fair enough. we saw kroger announcing it will raise dividends doing a $500 million buyback and 2 for 1 stock split. shares barely budged. is the stock split the new vogue for corporations? >> you know in the end of the day it's meaningless. why stocks go up afterwards if you think about it intuitively, companies doing those are prone to split. not the companies under pressure. by definition those stocks will

continue to go higher i guess. that is why i think it's an interesting thing. at a certain point, netflix will continue to move higher. it's a great company. micron is out. i think the stock is higher. right now just looking at the numbers, i would attribute to the fact operating margins are hanging in there after the pause. >> micron reporting 54 cents on $3.85 billion. the street was looking for 56 cents on $3.9 billion. gross margin 31%, that is in line. the ceo talking about how in the quarter micron experienced market head winds, driven primarily by weakness in the pc sector. the company remains focused long term as they continue to deploy advanced process technology to

enable leading edge products and drive manufacturing efficiency. stock was down 30% year-to-date heading into this print. worries about pc demand pcd-ram prices. the conference call kicking off in 25 minutes. we'll bring you headlines as they come. >> good stuff. thank you. shares up about 2.5%. a nice beat i guess. >> i'm not sure why the shares are up that way. we are expecting windows 10 to come out. there is hope that will spark revitalization in pc buying in the back half of the year. margins are in line. i'm not sure why people are excited. maybe there is something to dig through here. there is a conference call to come. >> and the underperformance year-to-date. dan, you were going to make a point about kroger. talking about the stock splits. >> guy brought up an important point that can't be hammered home enough for viewers.

a stock split in theory matters not at all for the company itself. it's not any more attractive or less attractive after a split as it was before the split. however, there are 190 stocks valued at $80 or more. that stands double the level in 2000 significantly above the level in 2007. in terms of how the broad market, broad market action volume, sentiment, there are fewer shares to trade. all those other things are lower. >> we heard this from critics who say there aren't enough shares. companies should have been splitting, but the retail investor wasn't there. >> at one point being unattainable, a stock $1,000 a share was not something you strived for. we get it from a fundamental standpoint. wouldn't the market feel better wouldn't action be a little better if all these stocks split

somewhat? >> 100% i would agree with you. for a lot of different reasons. it doesn't make sense but people would rather own 10 of $100 stock as opposed to one share of $1,000 stock. whether that's right or wrong, i think it makes people feel better. it makes people feel they are more into the game than they would be. that they are a bigger part of the puzzle. whether it makes sense or not, i think to your point, it just makes people feel better about being in the market. they feel like they have a bigger stake in the game. >> from an institutional side of things where i come from from the sell side perspective, there is less volume less commissions, people less happy. we would all be better off if everybody about a 7 for 1. >> it's a really interesting

point. gets to the heart of the activity. guy, thank you for joining us. guy adami. catch him on "fast money" at 5:00. financials underperformed the broader market this year. one of wall street's top ranked fund managers has been making a big bet on banks. plus earn frgs dow component nike are due out any moment. instant reaction and analysis soon as they are released. >> and the supreme court backing a key provision to uphold obamacare. is the end of the road for challengers? larry kudlow and barney frank weigh in later.

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welcome back. ongoing tensions on greece weighing on market. my next guest has almost half its funds invested in europe. joining us on a cnbc exclusive is bill nygren. good to see you. >> thank you. great to be here.

>> let's begin with your confidence in europe. what do you think -- how much could stocks rally if greece leaves the european union or the euro zone or how much could they rally if it holds in here? >> at oak mark we don't think we are any better forecasting macro events like that than anyone else is. we look from a bottom-up basis and look for stocks selling at a big discount to underlying value. we think opportunity in europe is unusually large because there's a lot of skepticism. we look at good global companies in europe that we think are selling even cheaper than they are when based inside the u.s. >> could you give us a couple of examples? >> we like companies like diageo. we think we get strong emerging market exposure there while we are still getting the developed market corporate governance and

legal protection not paying as high a multiple as we are for u.s.-based packaged goods companies. >> here in the u.s. i see you have names including some of the biggest financials in your portfolio. i guess you think they are significantly undervalued? >> absolutely. that really goes on a global basis, as well. not just the u.s. investors six years ago felt they got burned by financials. we look at the financials today with twice the equity to assets they used to have. we don't think they are nearly as risky. loans they made in the last seven years have been based on good old-fashioned lending standards. they sell less than book value. less than 10 times expected earnings. we think that is attractive relative to an s&p that sells in the high teens. >> it's dan greenhouse. i have a general question. if you look at the performance year-to-date, more expensive stocks outperformed less

expensive stocks low quality stocks outperformed high quality stocks. that's been true for a lot of the recovery. are you finding today's investing environment more difficult than what you've seen in your lifetime or is there something unique that perhaps the investing landscape changed and going forward this is going to be more of what we'll see? >> i think it's a little bit of an unusual time today, given how tight the pe distribution is. if we compare this to the market bottom six or seven years ago, there were stocks then that sold at four or five times earnings. there were stocks 15 to 20 times. the high-priced stocks sold maybe four times the pe multiple of the low priced stocks. today with the market at 17 times earnings, not much sells at single digit multiples. not much sells more than low 20s multiple. we think there is still an unusual opportunity to buy very high quality businesses and not have to pay much of a premium for them.

we own names like mastercard google amazon, that you don't typically see in value manager portfolios. we don't think the pe multiples are as high as they should be relative to the market. >> you sound like the opposite of what carl icahn was saying about the market overall being overheated. do you flat out disagree with his commentary? >> we don't consider ourselves market timers. if we can fill a portfolio with stocks we think are undervalued or the value is going to grow and where management is aligned with outside shareholders, we'll fully invest a portfolio. between financials really high quality businesses that aren't as much of a pe premium and some of the commodity plays that have gotten knocked down we think this is about a typical period of opportunity. it's not like it was six years ago where we were selling stocks we thought were cheap to buy stocks that were cheaper, but

relative to normal environments it's a normal time. >> a fascinating point about some of your tech holdings. appreciate it. >> great. thank you. >> bill nygren. >> nike is out with its quarterly results and what looks like a nice beat. sara eisen, what can you tell us? >> 98 cents a share. analysts were looking for 83 cents. sales better for nike. sales $7.8 billion. analysts looking for $7.7 billion. when it comes to nike where the stock trades where the eyeballs go is the futures orders. analysts were looking up 11%, nike came in up 13 pfrmts if you take out the impact of currencies only 2% or add in the impact of currencies. obviously, that strong dollar is weighing on nike when it comes to futures orders particularly you see that in western europe.

obviously, the strength of the u.s. dollar against the euro will cut onto futures orders. this is a big beat for nike on the bottom line. 98 cents versus 83 cents expected. better sales. better futures orders up 13% versus 11% expected. obviously, those getting hit by the strong dollar only up 2% with that impact. we'll continue to dig through it and see what drove these better results. >> big swings because of the u.s. dollar. nike shares p lift almost 3%. france coming to a standstill today. thousands of tractiony drivers blocking roads and setting tire fires protesting against uber. will this get the company to backdown from its overseas expansion? >> it may be heaven on earth for vacationers, but hawaii is no paradise for the corporate

world. why the aloha state came in dead last in our top states for business.

welcome back. nike just reporting its fourth quarter results. a nice beat on the bottom line. the stock up about 2%. this was a big impact from the u.s. dollar. which figure is more important, that they grew 13% orders on a

neutral basis or just 2% taking that into account? >> thanks for having me. it's definitely the constant currency numbers i'm focused on. >> what does that mean for you from here? >> it tells me the investment thesis is still working. >> interesting the direct consumer business is going so well for them. average selling prices are up as well. you expect to see that continue? >> part of their plan was to shift investment to sales to consumer. when sales are made nike gets to keep more of the revenue as

opposed to sharing it with retailer. >> obviously, it's not in the press release. what point do we start to think about the olympics and effect that might be having on nike? >> i'm already starting to take a look at it. you are talking still a year ahead. nike is probably going to start taking gross margin that it's gaining and investing it into selling and marketing expense. looking for maybe the calendar fourth quarter this year beginning of 2016. >> i'm not sure either one of us can talk about this, but there is talk skechers and companies are looking at. do you know whether a foot wear company might make sense? >> i have heard speculation that way. as strong as the nike brand is i don't know why they would need to complement that with another brand when they can just take

over any part of the shoe selling market they choose to go after. >> someone lately suggested the sneaker movement was dead or wasn't as cool as it was five or ten years ago. is that true? >> i don't think so. >> i don't think so either. appreciate you being here. we'll look to the nba draft tonight that. was a big pick-up for the quarter. >> thank you. time for our cnbc news update with sue herera. >> secretary of state john kerry releasing the latest report on human rights present practices to congress. the u.s. labeled iran cuba myanmar as serial human rights abusers. he talked about the unique role of technology in combatting as well as carrying out human rights violations. >> another hat in the republican presidential ring. new jersey governor chris christie will announce his presidential ambitions in livingston, new jersey on tuesday. it is expected owe will visit

new hampshire as heart of his rollout. lululemon recalling over 300,000 women's stops because the hard tip draw strings whipped some of those wearers in the face causing injuries. the company saying the impact from the recall will not impact its bottom line. mourners packing the church for the funeral of ethel lance, one of nine people gunned down when dylann roof opened fire. sad moments. back to you. >> thank you sue. hospital stocks soaring after the supreme court upheld a key part of obamacare today. larry kudlow and barney frank debate what the ruling means to the economy and your wallet. is this the future of transportation? celebrities are buying them up. the co-founders of what is

called funky duck tell us whether their product can succeed where the segway failed.

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the day on wall street. dow down about 75 points nasdaq down 10 and s&p down six. tenet health up 12%. hca up better than 8%. health insurers popping partly on the decision and reports that followed soon after that aetna is close to buying rival humana. humana up 7%. there's been tons of speculation across this space. and scotus care referring to the multiple times the high supreme court ruled in favor of obama aspects. he issued a scathing report. is this the end for challenges facing obamacare? we are joined by former congressman barney frank and senior contributor larry kudlow. welcome both. >> welcome. >> let me begin with you, larry. what is your take generally speaking on this verdict today and the future of obamacare?

>> i think the next charge the next legislative political charge is not going to come until the presidential election. there is unhappiness and dissatisfaction with obamacare. you see it in the polls, "wall street journal" poll 65% either want it fixed or repealed all together. i don't think there is any momentum in the senate and house for republicans to post bills, to pass bills to be unified on the issue. i don't think that's possible. it all waits for the 2016 election, but the battle is going to continue. >> we see that because, barney jeb bush today on his facebook page said he was in the repeal camp. >> that's not a surprise. that is the camp that will dominate the republican primary. i want to note one thing. we now apparently, with scalia in usual angry mode completed a

transition conservatives used to denounce the notion unelected judges should overturn decisions made by popularly elected branches. we have justice scalia having a tantrum because an act passed by the president and voted by congress and supported by the people who re-elected the president whose bill it was in 2012, he is upset the judicial activism hasn't gone far enough. i agree with larry as to his prediction. as of next year you can't just vote no. you have to put something in its place. there is one thing about the polls i think should be noted. of the people directly affected by the president's health care plan, which i was proud to vote for beings overwhelmingly, they are in favor of it. most of the criticism comes from people who have not been impacted. if you talk to people who have gotten health care who have gotten protection against a lifetime ban or not getting health care because of their

illness, they are in favor of it. >> the point has been made of course you would be in favor of something you are given that is a good service. this goes back to the cost of it. fundamentally speaking once these subsidies roll off if they do is the cost structure going to be far higher than people realize today? >> that's a key point. >> no. >> cbo says the opposite. i was responding to the political point about what is going to happen. people who get medicare like medicare. that's why the plans to diminish it won't work. cbo says it would wind up adding to the deficit. >> i don't agree with cbo. take senator ron johnson's bill which is the baseline republican bill. you've got about 45 cosigners. repeal the individual mandate and business mandate. repeal the mandated regulations inside the insurance plan. that it's only way you are going to lower costs to make this

affordable. we already had published rate hikes, insurance rate hikes up to 15%, 30%. i never thought the numbers added up. the idea was the young people were going to buy these plans, take a higher deductible and finance the older people. i don't think those numbers add up. most analysts who look at it don't think those numbers add up. >> can i -- >> those left holding the bag will be taxpayers. >> the congressional budget office larry is dismissing is headed by the man the republicans picked. it is a congressional budget office that has a great reputation for neutrality. larry is dismissing them. i think you'll add this to conservative predictions of disaster. we were told it would wreck the economy. if you deny people care it may cost less the fact is this is a

bill that expands care with cost controls. as a matter of fact, ironically when the bill passed republicans attacked democrats in 2010 because there was cost restraints in medicare. it will cost more to say to poor people in many of the states who have no decent medical care we'll help provide it for them. i'm proud to live in a country that does that. >> the cbo changed its argument. the cbo first said this plan would not cost jobs. then they changed their argument and said it would cost 2.5 million jobs over ten years. i believe they will change their deficit argument too hang on. >> let me pick up that. >> let me make one more point. on the cost issue. i agreement costs are a problem in this whole deal. we don't have true choice. we don't have true freedom to pick the right health care plan. another reason is the subsidies reach up well into the middle class. a family of four can get $100,000 a year income and they

can get subsidized for obamacare. we should have a means tested. i like barney's point about the low income people. yes. we need to help them. we can't just open the door to everybody and create another middle class. >> two points. larry just agreed the cbo is being intellectually honest. it will cost jobs because people who will be getting health care without having to go to work can exercise their option not to go to work. we had pressure on older people who couldn't quit work because they weren't there to do the job, they were there for health care. secondly middle class people. some of my conservative friends like to have this double mind if we only help the poor they go to the middle class and say you are being suckered. if we try to stretch out the subsidy so it does reach people -- if you've got several kids and they are going to college, i'm ready to help you

with health care. that is a reasonable thing to do. >> we are out of time. >> dan has a quick question. >> the first is instead of looking backwards, let's look forward. what is the fate of the medical device to tax and ipad right now? larry, would you like to weigh in on speculation that perhaps you are going to run for senate in connecticut? >> i'm not going to respond to rumors. i don't think will happen to the medical device tax. i think today's supreme court decision stomps out any legislative action. let me go back to barney's point. regarding jobs and the economy, there is a broad consensus among economists that 29 hours worked is the limit. if you go to 30 hours worked you have to go into the plan or else

pay a large penalty. middle size companies don't want to hire the 50th worker because they will be penalized unless they go into the obamacare plan. this is why the cbo persuaded by university of chicago economist casey mulligan to change its view and said it will cost 2.5 million jobs. we should not have arbitrary ceilings and get rid of the mandates. >> if we stopped responding to rumors, the show would be off the air. cbo said the reason jobs will go down is that people who have other means of getting health care will voluntarily decide not to work. it is not that it will prevent the employers. the major argument was we would be giving americans more freedom. people who are older and not feeling well won't have to go to work to get health care. >> i think both. both arguments were made. >> you only made one of them.

>> i don't think the issue is the jobs issue. this government-driven plan will not work. that is my view. debate will go on. >> larry, we are watching you like a hawk. thank you both on this key decision from the supreme court today. you won't hear uber shouting "vive la france" today. the segway was supposed to be the next evolution of transportation but should that be given to phunky duck instead?

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micron earnings shares are tanking after its report. >> micron doing a sharp u-turn in the after hours. you saw that initial pop after they posted results now heading lower. micron giving guidance q-4 sales of $3.5 billion to $3.7 billion. the street wanted to see more like $4.2 billion. the stock had been down 30% heading into the print. you had worried about pc demand and d-ram prices down 20%, 25%. the call is going on right now.

i'll hop back on and bring more headlines as they cross. >> a word here? 7% decline now. >> i'm not sure why it's popping. the flash memory folks have been very much under pressure. i think it will take more than just the inline margins to get people excited about this. you've got to see a full turnaround in the cycle. >> fair enough. micron shares down nearly 7.5%. there is nothing like paris in the spring but the city of lights was quite a scene today. incredible pictures as thousands of french taxi drivers dropped traffic in protest against uber. access to both paris airports blocked. france did ban uber but drivers say police haven't done enough to force the ban. let's bring in kevin o'leary for what this could mean to uber's

banks. >> these strikes that block roads have been going on for decades. when farmer subsidies were changed, they took tractors to all around paris and barricaded the city for three days. when they changed the taxes on gasoline truck drivers did the same thing. this is what the french do. they absolutely love to do it. in this case this is helping uber. in paris there are people that don't know about the service if they didn't know about it yesterday, they know about it today. it's a great service in paris. it works very well. undoubtedly over time it will be adopted and the ban will be lifted because it works. this is the best advertising money could buy in paris. >> i'm thinking about las vegas which was serious saying you're not welcome here. you can't operate. they don't. who are you so convinced that in

paris uber will actually have a future? >> i think what you'll find if you look at the demographic of vegas, an incredibly transient society there. paris is different. i've got millions of people that want the city to be more productive. this is a productive tool. people will adopt it eventually. i'm here in los angeles and i probably already spent in the last week i've been here almost $1,000 on uber. it really works. i would never want to see it leave. it's just time. it's going to be adopted whether it's this service or another. the future of the car is changing. you can't stop it with a few people blocking roads in paris or anywhere else. >> you get around like a real shark. if you don't stop moving you die. i was in spain earlier this year. i don't travel nearly as much as you do. you still can't get uber there even in barcelona which is a

very cosmopolitan and technologically astute city. what is to say france goes along the same way spain has and continues to bar the service? tries to do its own built-in taxi order service and in spain that worked terribly. >> madrid and barcelona has government- government-supported system which is crap. it's better to walk than use that. as others see how successful uber is in different cities the market is telling you that. it doesn't care how much uber loses in cities like paris or miami or las vegas, the market capitalization of the company and even its competitors continues to lift. i'm convinced in the next decade this is how it's going to go. i haven't got behind the wheel of a car the last ten days here in los angeles. i don't drive myself. i uber everywhere. >> i just ubered all around

nashville at $4 $5 a ride. thanks a lot. yesterday we revealed minnesota is this year's top state for business. scott cohn is still there and taking a deeper dive. >> we are at the minnesota sea life aquarium in the top state for business. if you are going to have top states, there are some states floating on the bottom. our annual look at america's bottom states for business coming up.

yesterday scott cohn told us the best state for business minnesota but there is a flip side to this and scott joins us from minnesota with the worst state this time scott? >> hi kelly. behind me you can see some of the fifth-ranked economy in the nation here in america's top state for business. we're at the mall of america in the middle of a $250 million expansion, so forget what you heard about the death of the shopping mall apparently but yes, if there are top states there are bottom states. here is the 2015 america's bottom states for business. louisiana comes in 46th this year a big drop from 40th last year.

the state budget is a mess and doesn't help that falling oil prices have fouled the state's economy. that's a bigger problem in state 47 alaska. not only is the economy near the bottom, but the state is also among the worst for cost of living and technology and invasion. rode island is 48th this year. but take heart, this ties for the best rhode island has done. west virginia is 49. america's bottom state for business has the highest cost of doing business, the highest cost of living one of the lowest rated work forces and the nation's worst roads. but it does have one big consolation because america's bottom state for business is hawaii. so all that cost do bayouuy you

something but there is interest. the ceo hawaii chamber of commerce acknowledging hawaii state has challenges and cost of doing business in the state but the chamber is addressing that legislatively. they say they successfully fought against increases in worker compensation cost tax increases and the like and trying to leverage hawaii's position a strategic position location-wise as well as tourist destination to move up in rankings like ours in the years to come. so that's america's top and bottom states for business 2015 a lot more about this online our special website top states.cnbc.com. kelly? >> i love it. really appreciate the info scott. great stuff. scott cohn in the mall of america no less for us this afternoon. wiz khalifa and justin

bieber afunky dock the combination of a segway and skateboard. those founders will join us live what is behind their success. is that jon fortt? when we come back. was random. random? no it's all about understanding patterns like the mail guy at 3:12 every day or jerry, getting dumped every third tuesday. this happens every third tuesday. we have pattern recognition technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. there's no way to predict that. for all the confidence you need. td ameritrade. you got this.

all right. why walk when you can ride? we're not talking about cars. we're talking about phunky. the segway skateboard kind of highway thing. one of the year's hot products joining me live outside the new york stock exchange we have co-founders max and matthew with the panel. well coal. >> thank you for having us. >> jon fortt is a proover here. >> not a pro. i can just stand up. >> i saw the moves before we went to break. this is a $1500 motorized skateboard. >> personal motor transportation and normally we retail it for $1500 but we would like to run a promotion for celebrity endorsement for $250 off or $500

off. >> this is only available for a couple months. >> we launched it toward early april, end may. >> max, where did the name phunky duck come from? >> we have another company, two and a half years ago we started, phunky tree. after he brought this back from overseas, his brother always was asking can you bring some ducks home? i want to play duck duck goose with my friends and we went with it. >> we wanted to co-brand it with phunky tree. >> why is this taking off with celebrities? >> i'm afraid of falling over and busting my face. >> are you ready to give this a celebrity endorsement? >> after a couple minutes you get the hang of it. i get the feeling i can go quickly. if it feels cool like skating, you can ten miles. typically what we say is it takes two to five minutes to feel comfortable.

after 15, 20 minutes of riding you're good to go. >> do you recommend doing live television and learning? >> maybe not for everyone. >> is there anything that prevents a normal person from using this down the street on the sidewalk? are there any rules right now? >> no it's pretty easy to use and can handle the bumps and cracks and can up and down. >> and they are pretty light up. pick it up if you don't mind and show us. >> not too heavy. >> we have no idea what his level of physical strength is. the this could be very light. >> the past couple weeks. >> what is interesting about this is that the segway is the butt of so many jokes. do you think you can make the motorized skateboard thing cool? >> the problem with the segway is it is bulky and expensive. this is extremely agile.

>> where can i buy them and how many have you sold so far? >> fred in los angeles. >> how many are out there, don't want to comment? >> first month we sold hundreds and second month we increased by over $400400%. >> how much does it cost to make them? not $1500. >> the that would be a horrible business plan. >> you turned down "shark tank" i heard? >> we didn't turn it down just postponed it. we're adding enhancements and modifications modifications. >> how hard he's concentrating first time on to not fall. >> show us what you can do. >> show us the moves. [ laughter ] >> 360. [ laughter ] >> this is what's called skill,

ladies and gentlemen. the co-founders of phunky dunk you'll see more as we approach the holidays. jon fortt, dan greenhouse a real pleasure. that does it for us on closing bell. "fast money" begins now. >> "fast money" starts now. live from the nasdaq site overlooking times square. good evening i'm simon in for melissa lee. for two big stories happening, one good one bad. nike on the bottom and top lines and sarah eisen will bring us the latest from the call and endless coverage throughout the hour. and the other big story is apple supply micron. the stock is tanking. that call underway. josh lipton hitting the headlines on that line.