plus, yesterday we talked herbalife with analyst tim ramey. today he's here to respond, and on this flag day we'll bring you the top five companies making the most money right here in the good ole usa. happy friday, everybody. mandy is off today. we did notice, maybe that's why the dow is down, off 112 points. right now we're going to get much more on your markets throughout the next hour. your top story is the breaking news out of detroit from today. mary thompson has it all for us. mary? >> reporter: in a bid to avoid bankruptcy and to continue providing needed services to its 700,000 residents, the city of detroit is defaulting on $2.5 billion worth of unsecured debt, failing to cover a $34 million payment due today. the decision is part of a restructuring plan the city's emergency manager kevin orr unveiled today. in a statement michigan's governor rick snider calling the plan a first step in a long and difficult process but a critical step in detroit's long-term economic growth. under the plan holders of detroit's $17 billion in debt will

herbalife.heir stock has been whipped around by financial titans going long and others going short saying i is a ponzi scheme. turns out according to this report has some 8 million customers in that report given the stock a boost. nicole petallides on the floor of the new york stock exchange. nicole: who loves herbalife, who doesn't. what i can tell you is a was a recent survey done shoveling a lot of people are using herbalife products. thithe survey shows almost 8 million u.s. homes purchase their products in the past nine months. direct selling industry for herbalife ceo coming out saying for all of you naysayers who say weeare a pyramid scam and not a real company this has been production in april and may shows otherwise that the product is hot, weight loss products among others. showing there is demand for herbalife products. liz: who put out this report, nicole? >> there is an online survey by nielsen survey. what the chief executive officer michael johnson says this is one of the most res

ackman took a $1 billion short against herbalife shares at the end of last year. the stock rallied nearly $2 yesterday. mark zuckerberg is facing facts. at the social media company's shareholder meeting, the ceo heard from angry investors who lost money in the company's ipo. the stock priced in at $38 and is now trading around $23. zuckerberg assured investors that mobile ads are going strong and that he still believes in the company. meanwhile, this week facebook is making big news with one little symbol: the site has added a hashtag similar to twitter's. union workers in milwaukee, wisconsin, are signing off on a contract with caterpillar. the equipment company offered steel workers a deal that was slightly better than the proposal they rejected in april. cat sweetened the pot by offering a $1,500 signing bonus, plus reduced the number of weeks employees can be laid off from 14 to 10. dead air in greece is triggering nationwide strikes. the government's decision to pull the plug on state-run tv and radio signals has launched a 24-hour strike. 2500 employees of a

another red flag on herbalife?fter stock sudden rise over the past few days report surfaced that california congresswoman linda sanchez urged the federal trade commission to investigate herbalife. now in theory that could be a stock rattler, because it could spark interest from other lawmakers. but this is where this gets interesting. with the stock possibly vulnerable, this morning, pr firm blank blasted a copy of an over the top bullish report from herbalife yesterday by tim ramy. his report came after the company we leased results after neilson story that shows herb yl life has real customers. than today, after the stock started rising, ramy issued yet another report. this one saying the shirt covering begins. he went on to question whether bill ackman, like 20% interest, is covering the deal. we don't know what the heck ackman is doing but i tell you, if he, covering the short, that would be kind of bearish because suddenly there goes the short squeeze story that people have been hanging their hats on. and coul

. >>> wrum back, a big new development in one of herbali herbalife's top distributors has gotten herbus have been looking into this guy for a while. >> that's true. a number of people have. for the second time in six months one of the herbalife's biggest distributors have left, broken in the "the new york post" over the weekend, but as scott said we've been going after this story as early as a week ago, calling the company on this. the guy's name is sean dahl, going to a privately held competitor. his departure follows a rule change involving lead generation companies. companies which sell leads to difficulty bursters he was believed -- >> that we first broke here. >> you did. and i also think, you know, those are companies that he was believed to be involved in. i have to tell you. i also understand that a third large distributor has been with the company for a long time is also, you know, i -- we've been -- been hearing these rumblings for so long and could possibly believe in the company. >> let me put you back. looking into this guy for a while, right, what his status is and wheth

- the stock's gone from $85 to almost $240 - it has recently pulled back a little bit - and then herbalife, not so good. the stock was down a couple percent yesterday- - he bought it when it was at its lowest, though. - he's actually in those options, so his cost is a little bit higher. so this one hasn't panned out yet, but this one could be the mother of all short squeezes, so keep an eye on herbalife. - topic number 2: star-bucks! the company just raised prices on coffee. is this stock a buy or a sell? - i would say holding pattern right here. i would rather buy it on a pullback than buy it right here. their p/e is pretty high, around 32. they are growing in china. we've seen this slowdown in china, and nike actually just reported earnings yesterday. nike did rally, and they have a huge chinese exposure as well, so i want to see it pull back a little bit, then i want to get long. - you know, $62, that was the breakout from the previous highs, but this stock has come a long way. remember, this was an $8 stock just in 2008. they have huge pricing power. they can raise prices, and the actu

herbalife, a company i talked about a lot.sterday with a nielsen study showing that 3.3% of u.s. adults have purchased herbalife products in the past three months. now, this actually corroborates data from a prior leiberman research study. of course, boast these studies were commissioned by herbalife. in the end, what i believe is all that really matters is that an ftc economic analysis would trump both of these. >> and first solar? >> first solar, we were told -- >> we've run out of time. >> out of time. >> out of time. >> out of time. >> herb greenberg. >> thank you, uncle herb. >> not that bitter, dash of lemon and everything is fine. >> next up, the rubber hit the road edition of street talk and a new indicator. we'll call it the cheese steak and rare steak index. >> and they are back. we'll be talking to the outrageous billionaire couple who tried to build the biggest home in america. well, he stopped paying the mortgage for a number of months so how in the world do they get the house back? we're going to ask them. [ kitt

does he move it over to herbalife after the survey came out which showed that herbalife -- survey i thinks showed nothing. but you know, herbalife is out there. >> stock's been going up too. >> yeah. >> started -- well, look, why did i mention hash about life? i've got the judge right here. >> he's here. >> he's got jurisdiction over herbalife. >> hits the cash register every time you say the word. he pat ended some relationship with herbalife. >> it's worth the call. ask about netflix. you have the in with icon. >> it's my understanding he hasn't sold any. >> what a home run. >> yu why would he? friday i was reporting on dell, another holding he has not made any money. >> right. >> quoting sources who were indicating he might bow out of his pursuit of a recapitalization. >> right. right. >> that has yet to happen. he's got a joint proxy with southeastern. obviously also jointly involved in trying to fund that recapitalization for dell, shares are up, 2 cents, at 13.41 below the 13.65 bid. we'll hear. yet to hear on the decision. they've got to firm up financing to show they can get there

some of the companies involved, sketcher and herbalife, they had resolve.nly stock down since the scandal broke. herbalife up 1.18%. >>> wall street stock pros will weigh in on what will move your money tomorrow. >>> then at 5:00 p.m. eastern, "fast money." the us economics editor who moved markets today. join us for that. is that we get to create our future. you get to take ownership of the choices you make. the person you become. i've been around long enough to recognize the people who are out there owning it. the ones getting involved and staying engaged. they're not sitting by as their life unfolds. and they're not afraid to question the path they're on. because the one question they never want to ask is "how did i end up here?" i started schwab for those people. people who want to take ownership of their investments, like they do in every other aspect of their lives. >> so does the rally continue tomorrow with 30 seconds on the clock for each of our guest. they're here to tell us what you need to keep an eye on for tomorrow. dean you're up first. 30 se

sounds a little like the highly controversial battleground stock that is herba-greenberg, herbalife. position in the stock. maybe the shorts are dead wrong. here is what i know. they have rallied 125% since the beginning of the year. they are in the middle of a big management reshuffle. if you own them, take a victory lap and ring the register. if you do not own it, it's risky and i suggest you stay away. it's a true battleground and you do not want to step into a cross fire, do not go over the top into the machine guns and last friday, i got a question about clovis oncology, from virginia, who lives in virginia. they have had a staggering, staggering 320% run year-to-date. that is amazinamazing, largely 8 point spike earlier this month after they presented positive data of two cancer drugs. it was impressive and that caused the analysts to up the stock and boost the target dramatically. you have to be careful, especially since the smoking hot cancer drugs that caused the rally are in phase 1. and clovis used the new found strength to do a offering at $72 a share. increased the stock

herbalife, terrific, and i made a couple of bucks, right? it is not like loeb is saying, hey, i'm here and i'm going nowhere. i am here to stay. >> it is stocks working and blows it out and people say, i'm in it because of loeb and discover, holy cow, loeb left, and then start the next thing that loeb comes in. >> well, there are reputational benefits/hindrance from losing something like this, and again, it is not a battle at this point, but more of a conversation. >> how about he tried? what's the matter with that? >> well, it fits in the way that loeb views japan in general, and he is very bull ish on what is taking place in japan from the stimulus efforts there to the arrows approach, and he told me as much with salt, and how bullish he is about what is taking place there. so it is interesting that he has this thing going on in sony at a time when his overall view of what is taking place in that country is incredibly bullish. >> and the wind is at his back. >> and the governance changes that he is hoping to push on as well. >> let me be c

hmm, sounds a little like the highly contentious battleground stock that is herbalife, doesn't it? whole multilevel marketing industry is uber controversial, and there is a gigantic short position in the stock. maybe the shorts are dead wrong, but here's what i know. it's already rallied 125% since the beginning of the year. they're in the middle of a management reshuffle where the ceo stepped down and the chief operating officer resigned. if you own usana, i would take a victory lap and ring the register. if not, stay away. it is a true battleground and you don't want to go over the top into those machine guns. also last friday i got a question about clovis oncology from virginia, who also lives in virginia! clovis has had a staggering, staggering 320% run year to date. that's amazing, isn't it? largely to a gigantic 38-point spike at the beginning of this month, which came right after the company presented positive data on two cancer drugs at that big american clinic oncology meeting i talked about, very impressive, causing analysts to boost the stock and prices. after a boost, i

data tracking software jumped 16% in its debut showing confidence in the enterprise startup and herbalifer after reporting that an online survey conducted in april and may showed that 3.3% of the population had bought its products in the last three months. the stocks is up 6.33% and the ceo of royal bank of scotland has stepped down. the stock is lower on that news by almost 3%. >>> well, would you pay by the month to fly as much us a want? one airline is betting that you will. cnbc's phil lebeau taking flight for us in burbank, california. phil? >> reporter: sue, i've covered a number of airlines going under over the last 15 years or so, so it's nice to do one about an airline launching service. today is the first flight of surf air. for 1,650 a month, that's what you pay to become a member of surf air. there are 150 founding members who have paid that fee. another 45 hundred on the waiting list. surf air believes that there is enough demand between let's say the silicon valley and burbank, or other high-traffic cities that people who fly between those cities a lot will pay that fee. it'

hmm, sounds a little like the highly contentious battleground stock that is herbalife, doesn't it?is uber controversial, and there is a gigantic short position in the stock. maybe the shorts are dead wrong, but here's what i know. it's already rallied 125% since the beginning of the year. they're in the middle of a management reshuffle where the ceo stepped down and the chief operating officer resigned. if you own usana, i would take a victory lap and ring the register. if not, stay away. it is a true battleground and you don't want to go over the top into those machine guns. also last friday i got a question about clovis oncology from virginia, who also lives in virginia! clovis has had a staggering, staggering 320% run year to date. that's amazing, isn't it? largely to a gigantic 38-point spike at the beginning of this month, which came right after the company presented positive data on two cancer drugs at that big american clinic oncology meeting i talked about, very impressive, causing analysts to boost the stock and prices. after a boost, it's not paid. it's not paid. you've g

securities fraud and facing the potential 20 years of prison for giving a friend tips on companies like herbalife earnings, and for the first time he spoke on camera. how did it happen? >> it's just through discussions at dinner and so forth and the other individual, you know, i might say something casual about frustration at a certain client, and, you know, the other individual traded off of that unbeknownst to me and then he brought to my attention and started asking questions and said, hey, well, you know, what's this company doing and what's that company doing, and, unfortunately, i gave him the information. you know, i never once asked for any money, never -- there was no -- >> reporter: but you didn't turn it down? >> that's correct. like i said, i regret everything i did and i take full responsibility, full accountability for what i did, and i want to make that clear. >> reporter: so now what do you do, and do you ever work again? assuming you stay out of prison, who knows. >> i'm going to work. i'm only 50. my kids might think it but it's not old, and i still plan to work, i have to suppo

plus, yesterday we talked herbalife with analyst tim ramey.we'll bring

. >> and meanwhile, herbalife, nothing happens. remember that?as like a interview -- >> oh, yeah. >> that one on january 25th of last year. >> i saw that hackman had something out. >> and we will never forget. >> and hackman saying that the nielsen study was no good. icahn from netbooks alone could take a takeover bid for herbalife. netflix is up again. >> and let me come back to the big deal con e sieve bli taking place in europe. deutscheland, one of the largest cable providers in germany, and then you had liberty global on one side and vodafone on the ther, and we will see who wins, but regardless, liberty global may be a winner, because if vodafone steps up to play the multip multiple, you have to say that could apply to them. and if they sell a verizon wireless to use the proceeds to buy liberty global. in is chess pieces down the road. but we talked about ergen, icahn and malone. >> i am trapped in a time machine. this is important, david, you know who else agrees with me that germany has bottomed. would you bid on a cable company if it was

dagen: what's do you think of >> thh audience knows there has been a tug-of-war over herbalife.omplete sham, or people got it wrong and a stock that is completely undervalued. on paper seems severely under valued. if i have joined this, i'm getting very, very nervous if i'm not a professional who can lose a billion dollars fo to the megaphone can't get another billion. any investors who have been riding the roller coaster, i would stay in. anybody who can handle volatility, stay in because they are taking their best shot. one more good earnings report and the stock will go off. dagen: why even mess we stock being polled in so many directions? >> it is hard to find value, this is valuable for a reason. you're right, you'd better have some towns next to you if you're going to watch it tick by tic. connell: thanks, charles. dagen: shares of first solar not looking good. nicole: raising funds for corporate purposes. they have begun an offering of eight and a half million shares of a solar panel maker. they already had close to 88 million shares outstanding as of the beginning of may

management standpoint, at least, very large especially when you have jc penney working against you or the herbalifeg your way, but this one's a winner. it's up from triple where we bought it. they did buy some that low and it's a great investment and i know that it's a triple from where they bought their position and more like a double. >> proctor's good. yesterday productor bad? today proctor good? >> yeah. >> i think that's pretty simple, yes? >> i'm not that binary. >> jim cramer on twitter. he likes this, he hates that. no. if a company disappoints i don't like it as much as if it's good. to your point, that has been a decent and it's a large position again, as well for pershing square. >> ackman feels picked on. >> i know. it's a sensitive billionaire issue. >> he's not one to say things that are -- no. like my great-great uncle vladimir lennon. i am very conscious if the rich are unhappy it's their own darn fault. >> fedex, of course has some news. dividend retiring jets early. does merrill know that it points out business is sluggish, right? fedex doing the right thing and they'll talk about