investors build up in gamestop. stephanie: tina people in my house love gamestop. at the cell away and go away -- what is your research suggests that will not play out this year? sam: depending on how we close today may will be up for the s&p 500 -- s&p 500. instead of getting your average 1.3 percent gain you get a 3.5% gain in that may through october period. obviously no guarantee anywhere. 3.5%. it is still less than we typically get i like to tell investors rotate, don't retreat. erik: one second that's an average. you look at those 70 years, and had -- and how many of those 70 years to the market advance? sam: 64%, the market how was higher. it was up 78% of the time. stephanie: where specifically? sam: specifically if you rotate into consumer staples and health care in the last 25 years that's as far back as our index department you would have had it 300 basis points to your annual return and really -- and reduced of volatility. a rising tide lifts all boats. if it is challenging you and up losing less in the defensive categories. stephanie: what are you sca

cfo of gamestop.ive you a hard time because we made comparisons, if you will to blockbuster. but it doesn't seem to be going that way for you. in fact it seems to be going in a much better direction. what, what is happening? >> well good morning. we get that comparison a lot. and i think the difference is that we're giving customers what they want. for us that means that we recognize that there's a growing digital component to the video game business. and that video games are cyclical. so, in terms of digital, we expect to do about $1 billion in digital sales in the next year. in terms of the business being cyclical, we know we need to diversify. we ehave about 550 stores now selling at&t and apple products and services and we'll grow that store count by about 200 in the next three months. >> so you closed on those acquisitions. how much, i mean when you think about diversifying your business. when we think about gamestop as a company, two, three, five years out, how much of it is legacy gamestop vers

. >> we got that -- can i just say we have a great quarter from gamestop and i'd rather you be with gamestopand we backed away from athe nagative. great job, gamestop. pete. >> caller: booya. boston scientific. >> what a discipline here. and nobody ever hurt taking a paragraph profit and those are the four horseman of the heart business. lets go to tom. >> caller: how are you. big booya from new york. i'm lookingality at apple hospital? >> it's got that 6.5 divdnd yield. i'm with you on that one. i kind of like it. steven. >> caller: booya from sunny southern california. >> you got the edge on us. >> caller: lyg. >> people are telling me this is the one, if you believe in the term i tell you this is the one thattall allready moved a lot and it's another stock i have been waiting to talk about. our viewers keep getting ahead of me. and that ladies and gentlemen, is the conclusion of the lightning round. >> the lightning round is sponsored by td amare trade. >> i wanted to thank you for helping me to oo decide on the major and career i wanted to pursue. and you had a intern puzigds with as muc

the consider the short interest in gamestop. for that, come to my terminal.he short interest is below peak. still, 45 million company shares sold short. that is about 43% of floats. this is the most shorted stock in the s&p 500. that means when the shares are up, you might see the upward move exacerbated by short covering. that could be some of what we are seeing today. on the other end is united rentals, as it was yesterday. this is one of the worst performing stocks, down 7%, falling yesterday after commentary by management that business trends in may were not fantastic. or was analyst commentary on the back of that today that is sending shares lower. if you look at a longer-term -- it a five term chart has done quite well over the past few years. it looks like the two day drop we are seeing could be the worst since 2011 or 2012, depending on where it closes out the session. scarlet: julie hyman with the latest. the short interest -- i love that. alix: of course you do. scarlet: the bird flu potentially -- alix: the bird flu potentially could be raising the

gamestop. >> gamestop. game over. stay with us. opening bell after this. >>> you are watching cnbc "squawk on the street" live from the financial capital of the world. we'll get the final opening bell of the month in 90 seconds. s&p coming off the smallest five day high-to-low range in eight months which is followed by the axiom, don't short a dull market. >> you don't want to fight the tape or fight the fed. the push me/pull you market one step forward, one step back. i'm watching battleground stocks. mcdonald's. it might go up because they are going to make the burger taste better. might go down because the burger doesn't taste good. it's a mcdonald's market. up one, down one, up one, down one. >> you're right. going to toast the buns longer, try to get the sandwiches hotter. >> my nephew said just from domino's, he is my head writer said just like domino's had to admit their pizza takes like cardboard, it's time for mcdonald's to admit their hamburgers taste like synthetic rubber. once they get that out there, they can move. the

it looks like gamestop has rolled with it. also looking at ulta earnings. larger than i realized it was. this is $10 billion company in terms of market value. it is a chain of 797 beauty stores, kind of like sephora, although the physical stores are in some cases bigger. the first quarter comparable sales, they are up 11.4%. an enviable number. worst quarter earnings are share and a dollar and four cents. pretty much the numbers look like they are beating estimates across the board. the second-quarter forecast does leave a little bit of room for it to miss estimates but it seeing ae we are positive reaction in the shares. while we are talking retail, let's rounded out and talk decker's. that companies earnings-per-share a four cents. analysts had been estimating breakeven. the first quarter forecast was below estimates. and $.52. of a dollar analysts had been looking for a dollar 17. that looks like more of a mixed picture although the shares are still trading higher. for now i want to bring in bloomberg chief economist and -- we want to hit on that top sto

potential evidence in court but they did not show a graphic video of the shoot-out that happened in the gamestopre. ramon williams and carlton hipp waived their preliminary hearing. prosecutors say they both fired a hot that could have been a fatal one that's why they're both charged with attempted murder. >>> decision 2015 and two candidates for mayor of philadelphia are already off and running, jim kelly and melissa bailey. talked to voters one day after the primary. we asked them about funding universal speech day. voters approved a commission to develop a plan to put that in place. >> do you fund universal pre-k? >> that's the question. it's hard to figure out how to fund it. >> how do you fund stadiums convention centers, things we pay for? it's all about priorities. >> and there is common ground between the two candidates there. they also want to put an end to the police department's stop and frisk policy. there are 166 days to go before you happen to make up your mind. election day is tuesday, november 3rd. you can read more about those candidates, where they stand on the issues on the nb

what we are learning in the earnings report of gamestop next. ♪ emily: the taxi wars continue this timenew york. the city wants to have three new rules which aim to stop drivers from canceling trips and reorganize uber in such a way that they could get potentially shut down if they break the law. right now, uber operates as six different entities in nyc, and 3 -- the city needs to approve app upgrades before they go through and will charge a thousand dollars every time. tech companies have spoken out against this last rule in a new letter sent to bill de blasio. it was signed by facebook and yelp. they said this will stifle innovation and the progress it brought to new york city. this is why the entire internet has come together to protest the de blasio administration's rules. internet companies should not have to ask the government for permission to innovate. the rules were debated at a public hearing today. so, what happens next? joining me is the former chair and commissioner of the new york taxi commission and the special collections partner and investor in lyft. what was the feelin

evidence in court yesterday but they didn't show the graphic video of a shoot-out that happened in that gamestop store. they waived their preliminary hearing yesterday. prosecutors say each of them fired a shot that could have been the fatal one.defense attorneys have hinted that they're trying to work out a plea deal. >>> in camden county folks in pennsauken weighed in on a possible lan to have their police join with the county regional force. citizens got the chance to comment at last night's meeting. no decision was made. the consolidation plan would save pennsauken $5 million a year but it would include cutting with changes in overtime and salaries. >>> from the delaware bureau now, officials in wilmington say they are making progress in their crackdown on crime. mayor dennis williams announced a new crime status night. he said overall crime was down 14% from 2012 to 2014. he praised the new police foot patrols in high-crime areas of the city. critic calling on a committee to make changes to the recommendations but williams has not committed to that. >>> the man who landed this gyrocopter on

and bottom lines for the first quarter for video game retailer gamestop. epf of 68 cents versus estimates of 59 cents a share. revenues came in at $2.06 billion. that's compared to estimates of $2.01 billion. they're also giving very strong guidance for the second quarter. in the after hours the stock is up by nearly 9%. >> noptt too shabby. what do you guys make of this gain? 9% move after hours. >> they put the nails in this coffin so many times before. this is one that has a high shortage risk. lots of guys are forced to cover off of print like that. they've been able to sort of look at the used game market. we see walmart try to imitate what they've done with the used game market but they still seem to hold those -- maybe the margins better than anyone else can at this point. i don't think it is a screaming buy going forward but it is definitely a short covering scramble when you see a print like this. i like to play on the hand-held here, trade stocks all day long. if that calls me a gamer. >> thank you, everybody. we'll leave it there for now. stick

short interest on gamestop is the highest in s&p 500. 4300% of float.hat means when you have some gains in the stock, some of the gains on top of that may be accounted for by short covering. on the other end of the s&p 500, as it was yesterday, united rentals. falling sharply. yesterday, the stock fell on commentary from management that business was maybe not terribly strong in the month of may, falling again today. analysts coming out and commenting as well. i want to look at the longer-term chart of united rentals. it has had a very good run until recently. it looks like today's fall could lead up to the biggest two-day decline in the stock. at least in the lows of the session since 2011. we have not seen a two-day drop in the stock for a long time. either way you slice it, it has had a big uptrend but this decline is a big one for that stock. betty: breaking news right now. blatter has been elected to president.m as fifa prince ali has withdrawn his name from the race. that effectively handed him the presidency. as brendan greeley said, it took two r

and gamestop is expected to announce earnings after the close.rist is going right to the court. awbone is suing its rival fitbit, accusing the company of plundering employees and making off with critical secrets. jawbone this left year. they took confidential information about the business. fitbit denies the accusation and is fighting back in court. guest who has advised companies in similar situations before. he is now the founder of a company in silicon valley, a talent strategies advisory firm and our bloomberg view columnist katie -- that is very cool, katie, because i read you all the time. thanks for being here. katie: thank you. state, you have experienced these losses before. what are they really about? guest: if there is a lawsuit that his the court, it usually follows a lot of attempts for somethingies to work out. clearly there is a lot of disagreement to get to this point. jawbone to take this action and send the message to their own employees, hey, if you go to a competitor -- is going get serious. they are not going after the indivi

potential evidence in court yesterday, but they did not show a graphic video of the shoot-out inside the gamestop back in march that took the life of officer robert wilson. ramon williams and carlton hipps waived a preliminary hearing yesterday. prosecutors say each fired the fatal shot that could have been the fatal one. defense attorneys are trying to work out a plea deal. >>> officials say wilmington is making progress to crack down on crime. the mayor said overall crime was down, 13% from 2012 to 2014. williams also praised the new police foot patrol in high-crime areas. critics have called on the mayor to implement recommendations made by a state-appointed safety commission. but the mayor has not commented or committed to that yet. >>> the program with the linebacker carlos baldwin at a gala tonight. he's been giving back to his adopted city. you're looking at a video tweeted tuesday as part of the nfl play 60 initiative. the program encourages youngsters to get outside and play. >> as a player and living in this community, i think it's only right that i try to encourage kids to be active. a

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

shares of gamestop surging. the video game retailer has a 9% increase in same store sales driven by new software. the company lifted its full year and second quarters earnings guidance. now it's up by more than 5.5%. >> kate rogers, thank you. danny, what's our trade? >> it's a tough one to chase. the stock has been consolidating. the stock is at 43%. expectations weren't very high. it's finally found some ground. the guidance looks good. don't chase it. >> squeeze. >> good old-fashioned squeeze especially in a low volume environment in the market. 41 where it was before the close, that's probably a good level to pull back to buy it. >> twitter catching a nice bid. the stock has taken a beating over the past 3407b9 falling more than 12% in the last 12 days. the ceo taking the stage at the code conference and answering kara swisher's tough question whether he would still be at the helm. >> will you be there at the end of the year? >> look, i have to focus on my job and what i've got ahead of me. i don't worry abo

we could have surprising from enterprises like ulta and gamestop. they can ramp stocks immediately. but, the most important bullish force for the market right now, we all know it. the it's takeovers, gigantic deals like the $30 billion acquisition of broadcom. or charter's purchase of time warner cable. i cannot stress, stress enough just how positive this fevered merger and acquisition activity can be for the entire stock market. ♪ hallelujah ♪ . takeovers plow money, often borrowed money into the market which creates more demand for stocks, when you ring the register on the targets, which by the way i'm urging you to do. we're not arbitragers here. takeovers create excitement about the stock market. if you own 200 shares yesterday morning at $47, you made $2,000 in a single day. try doing that with a cd. if you got into time warner cable, you cleaned up 135 goes to 180. now, i know there are some people who see all this wheeling and dealing as a sure sign of a top. they think the froth is so evident that how can you not get out? sell, sell sell. i think it's true these deals would

our terrible trio consumer discretionary, best buy, bed, bath and beyond, gamestop, you look at thesed you say i'm going to jump off a cliff right now. when i feel like that, i get happy. because when my algo is doing the job, it's making the decisions that me as a human being intuit i have bentuitivel never do. >> we always people we've had a good run. we've been on a great run, but we're doing active concentrated, high-tracking value investing, so stand by. we could have a three-year stretch, a four-year stretch where we underperform. warren buffett, 94-99, there's a huge boast anywhere baron's that said, warren buffett is losing his magic touch. that's part of the game. we've had a really good run. for us, it's all about expectation management. don't expect that. we're not a short-term trade this is a long-term investment. >> 2013, plus 36%. year to date you're up 3.5. >> you mentioned best buy and bed, bath and beyond. best buy, if you were in it before this week you're feeling even better. >> and also in gap, too. so you win some, you lose some when you buy trash stocks, that's h