craig levitt, the ceo of kate spade, joins us on set for a cnbc exclusive.s dennis gartman sounding the alarm on u.s. markets and make something big adjustments to his portfolio. we've got the details after right after this. in today's market, a lot can happen in a second. with fidelity's guaranteed one-second trade execution, we route your order to up to 75 market centers to look for the best possible price, maybe even better than you expected. it's all part of our goal to execute your trade in one second. i'm derrick chan of fidelity investments. our one-second trade execution is one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. they're the days to take care of business.. when possibilities become reality. with centurylink as your trusted partner, our visionary cloud infrastructure and global broadband network free you to focus on what matters. with custom communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. every day of the week. centurylin

melissa: shares of kate spade looking very fashionable today.stock seeing big gains after reporting first-quarter earnings. let's go to nicole petallides at the new york stock exchange with more on this one. quite a pop. >> yeah, melissa. tough assume that the shareholders are pretty pleased when they look here at kate spade, when they see this pop in the stock, up 9% today. we're talking about sales that are surging, crushing competition, such as coach though they still have intense competition from michael kors. however they have done well in the latest quarter. they have really shed the other names and focused on their core brand of kate spade brand. they sold off remember, recently lucky brand, among others, talked about the whole brand and sales continue to be very strong, and despite some companies talking about tough winter weather and seeing less traffic, not kate spade. they don't seem to be bothered by winter weather and storms, any of the like. we saw sales and brand rising 54% from those net sales. really outpacing all the survey est

we also building where's there a clear connection between a new spin-off like jake spade and kate spade and obligation brothers they need to go through the cu process if they're popular with the neighborhoods they'll go through without a problem. we also think there should be requirement that all formula retail that wants to come up you accompany more than 3 thousand square feet should be looked at. this impacts a large area from the one quarter walking distance - >> thank you. next speaker. . >> hi jay chang with the realtors we want to persuade the planning department we support the neighborhoods that are walkable and help people find homes everyday in san francisco. because san francisco is a one kind of a place. we agree with a number of the recommendations the move from 11 to 20 makes sense to us that arrived out of a form process the addition of the conceptual evaluation is good we ask you look at the additional defines to the formula related we having ask real estate brainstorms will fall under the description of formula retail what we and he real estate broernlz is one that migh

we have kate spade handbags. and are they democratic luxury that you would call democratic?they are affordable and that competes with michael kors and coach and anyone that has been watching "varney & company" knows that kate spade and michael kors have outpaced coach and those first names are up 22% and coaches working on this because let's focus on kate spade. their sales were up over 20% and what they noted was that even amid the severe winter weather that it didn't affect them and their performance continues to be of a .5%. >> for that 20% sales gain, that is huge. and the fast food industry bracing itself to what can be the biggest round of protests around the world tomorrow and here we have the firehouse subs the ceo. >> thank you for the invitation. we have 767 steps and let me deal with the state minimum wage. it varies state to state and what do you do when you have california, new york, with the a minimum wage that is higher than neighboring states. and how does that affect your location? >> the main impact is on pricing. it was phenomenally a franchise system and

kate spade coming in with better than expected reports. with earnings i should say, the company was held by its core kate spade brand in the last quarter. it stocks is responding over 5%. fossil with a disappointing outlook for the year, putting pressure on its stock. we just want to mention deer, while earnings were better than expected for the prior quarter, its sales outlook is keeping pressure on its stock. the dow down 35. david, back to you. >> all right. i'll take it. thank you so much. let's get to the bond pits. rick santelli is at the cme group in chicago. hey, rick. >> good morning, carl. we got hot hot hot inflation data and yields going down down down. how counterintuitive is that. that's what happens when you go down the central bank rabbit holes around the world. the bank of england thinking they're going to keep rates low longer than many anticipated. the ecb trying to figure out ways to move interest rates down. like it's done a whole lot to help things like housing in this country. as you look at the comps going back down

. >>> kate spade, the accessory and apparel designer posted a wider loss from continuing operations but that didn't seem to bother investors, the stock went to $37.60. >>> the "the new york times" announcing that jill abramson is leaving, she has been the news room's leader since 2011 and was the first woman to take the job. shares were down to $15.06. >>> and seaworld posting a wider than expected loss after the bell, the shares fell. the theme park operator blamed the declining traffic in the shift of the timing on easter and the spring break season as well as bad weather. the shares were down initially after the report. >>> it is the biggest democracy on earth and this week voters in india will choose a new prime minister. so why should u.s. investors care? well, that is because the frontrunner for the top job is considered to be very business-friendly. and willing to open the country even more to more foreign investment. and a lot of u.s. companies are ready to jump right in. >> reporter: the voting is over in india and the election results are expected in just two days. estimates a

to try to come in valencia without a cu because there were not 12 jack locations, but opened by kate spade, which is owned by a larger company. at the time they came in they were owned by liz claiborne. thirdly one proposal includes expanded use categories. expanding the application of formula retail controls to other types of land uses could affect a significant number of businesses considering new locations in san francisco. and make it more challenging to fill vacant storefronts in some districts. as the retail industry becomes increasingly consolidated, non-retail play an increasingly important role in filling those spaces. so lastly i want to talk about some potential issues you might want to consider. people wanted us to find what was the appropriate concentration to have in a neighborhood commercial district, but it varies so much depending on conditions and what that community prefers and that is the whole intention of the neighborhood commercial district is to reflect the unique character of that district. so you can see this is a zoomed in view of the concentration and you can se

we will ask him why kate spade and tory burch are snapping at his heels and what coach seems to be doinghes down 26% so far your today. >> thank you very much. i know that you have all those brands their and less quarterly numbers. coming up, welcome to russell street. it is the single most expensive strip of commercial in the world. ♪ >> welcome back to "on the move ." hong kong is home to the most expensive street in the world when it comes to commercial real estate value. betty liu took a tour of russell streets to find what a few million dollars would buy in real estate. it is not much. hong kong is a maze of stores. there are shops piled on top of shops. to help me sort through this is this guy, sam. great to see you greater >> welcome to hong kong. >> would you like to shop? >> please. hong kong is where you come to shop if money is no object. cartier, rolex, they are here. the landlords collect some of the highest rents in the world. we are in front of the store that just sold for 23 million u.s. dollars. is that a record? >> i think that is the most expensive store bridges in the

it could have been a long holder of kate spade replacing a million shares with an options trade thates them an economic interest between $45.50. if you look at the chart. they're trying to isolate that high strike at $40 here. that's where they want the stock to go on july expiration. if that happens, they can maybe up to $4.55. they're using this right here. this is a price option. they want to buy one of the lower strikes. sell two of the higher strikes at upward resistance and they think this is a probably a good range. >> despite the recent pullback the stock has had a monster run overall. >> look at that video. >> yeah. this is our interview. the ceo. >> look at that. that's good stuff. >> nice bag, right? >> good-looking bags. >> what about melissa's outfit? >> she asked about the bag. >> go, stock. >> i'm with dan on this one. dan has made some wonderful calls. you listen to dan nathan these days and you do well. that is to me a head and shoulders pattern. >> why is dan walking on water today? dan walking on water. >> no, i agree with tim on the street fight. >> that's true. y

they will be talking with kate spade, speaking of the consumer, about how bringing the brand back tosics has boosted the stock lately. don't miss that. just discussing citigroup, the company first failing the fed's capital stress test and deutsche bank raising concerns about its balance sheets. do investors need to worry about the health of the banking industry. we'll get into that next. also, not exactly a shocking, countries spying on each other. why is the u.s. filing its first ever cyber economic charges against china? we'll try to get to the bottom of what the white house is up to. a devastating coffee crop disease could be causing a cries spike for your favorite cup of joe. details later on "closing bell." you're watching cnbc, first in business world wide. siness worl. over 400,000 new private sector jobs... making new york state number two in the nation in new private sector job creation... with 10 regional development strategies to fit your business needs. and now it's even better because they've introduced startup new york... with the state creating dozens of tax-free zones

even kate spade had margins that were down. it's a battleground, david.nd. >> kors is a battle ground. >> it's a battleground. >> to bob pisani on the floor has a lot more on what is moving. bob? >> good morning. a little mixed market today but there's been a change in tone. we had a trendless market that complained about it, traders aren't making money. a more clear trend in the last few days towards higher cyclical names doing better. put up the markets in the last five days. you see tech stocks, you see consumer discretionary stocks and financials outpassengeerfor. telecom, and consumer staples are lagging the market. a little more of a cyclical tone to the market. the big discussion, though, is whatever happened to volatility. did you see citigroup's comment yesterday trading revenues down 20 to 25%. jpmorgan said the same thing. to make money you have to have volatility and market trend. up until recently haven't had it. interest rates lower, derivative volumes are lower, equity fund flows are lower, even the foreign ex guys are lower. partly the reg

the 4.5% decline on kate spade. we had the ceo on. that's not a buying opportunity. >> if people are looking for better price merchandise, if rounds of golf are down -- >> you believe in the golf indicating. you're predicating your investment thesis on golf. >> we could branch that out. that's a granular and micro on golf. when you say how are they wrong, when you see actual trends change versus we're just saying that jobs are weak and the consumer is weak. >> to me it is not whether or not the consumer does spend. it is whether they should be spending. that's what i get caught up on. the health of the consumer shouldn't be predicated on whether or not they're spending. it should be predicated on whether or not they're in a position to spend. because the u.s. consumer historically will spend regardless. i think they're in a position now where they probably shouldn't be. i think they've gotten themselves -- >> they shouldn't be. fine, good point. should not be spending but will they. that's all that matters at the end of the day. >> to

>> we talked about kate spade, don't fear the rise today, add to the position, buy more. >> anthony?n this company around. look for a shot more share buybacks. >> we've had a fun show today. it just continues tomorrow. you've got to come back tomorrow for day 2 of our coverage from the salt conference, another all-star lineup of exclusive interview. how about leon cooperman, steve kuhn, you have a good lineup ahead today, too. >> we're looking forward to your interview, the judge, the general. >> and the prime minister. >> the judge, the general, the prime minister. just wanted to say on the judge there for a second, and i forgot about the prime minister and the general. >>> we will see you tomorrow. back to headquarters tomorrow, "power lunch" begins right now. >>> a judge, a general and prime minister walk into a casino. that's the star of a good joke. >> the record highs, is a summer rally still on? or are they looking at a big of a summer swoon. >> major move to thaw housing, federal

kate spade, that kind of thing. >> what they have done very well in terms of their imprint in terms of really transformed their appeal to a much younger consumer. it will not work in the same way for louis vuitton, which is much more traditional. how it reaches consumers. it does not work for everyone. but the main challenge for this space is the fact that a lot of companies have taken significant prices. they do not have the brand equity. as a result, people like michael kors, it takes spade, much more affordable price points. it makes them cool with younger people. they're capitalizing on these price increases. >> thank you for joining us. netflix plans to expand deeper into europe fisher. hans nichols has more on reading a stink -- read hasting's ambitious plan. >> six new countries on the continent. germany, luxembourg, switzerland, austria. i no longer have to try to hide my location so i can download netflix. subscription not available in your country, standby. they may be changing that. anticipates 70% of revenue coming from outside the united states. when you look at their curr

despite that, i'm a big fan of kate spade. macy's will be february, march, april. they'll be able to tell us april was good. >> a better story. >> they'll be able to tell us the first part of may was good. kate may talk about april and early may. i hope they do. i don't think they could have a good story on the first quarter. >> thursday, walmart. what do you think we hear from them? >> i don't have any retailers other than kohl's that will be better than the consensus estimate. walmart won't either. i think it was a tough quarter for all of them. >> why? >> primarily the weather but the consumer is just starting to come back. the fourth quarter was very tough. >> walmart talked about a change in food stamps as well hurting them, no? >> right. they're very concerned about the low-end consumer. i personally think the low-end consumer as well as the consumer is getting better. the amount of disposable income is starting to pick up. other than the food stamp issue which is more directed to walmart and the dollar stores than it is any of the rest of the players, most th

kate spade, tori birch. do you think they have the good to compete? >> very much so.of a bigger trend. luxury brands have raised the price point so much that all of these brands have the room to come in. they have to watch that point. for now, i think, there is a trend where there is a big market and these people are all -- >> there is room enough for them all to win. >> that is part of the image. you're still selling a dream. you think you're walking next to hermes and are something on the same street. >> i have to ask you about coach. a lot of people would have said carved out this accessible luxury sector. now the stock is tanking down 26% year to date. sales dropped 14% in the holiday season. very bad news. what went on with coach? >> too much logo. when you have a segment like that. >> it has to be cool, mark. it is that simple. >> it is exactly that point. whenever girl has a coach handbag, you don't want one anymore. >> what was the 36,000 pound handbag you were talking about? >> that is hermes. >> have you seen any of that around london? >> preorder, two-year

kate spade came out with strong numbers. michael kors is strong. tory burch is still healthy. weak. the overall sector is still growing 10%. not 20% like it used to be, but 10% is strong growth today. >> that says a lot about the consumer. thank you, greg johnson. crll to come -- greg -- johnson. videoill to come, a exploded yesterday. we will take a look at what this video is worth two companies like tmz. russian billionaires facing ukraine-related sanctions. we will have the details on that front. ♪ >> the saying that banks are too big to jail might not hold any merit according to people with the matter. seeking morers are than $3 billion from bnp paribas, and the number could get bigger. bloomberg finance reporter terry geithner joins me with more. this far exceeds the $1.9 billion hsbc had to pay. a much bigger could it get? >> it is a starting point, and potentially, we will go north. the fine will also include a guilty plea from the bank, and this is where we are in new territory with how the banks are howrmining bad behavior and things have gone wrong. this is one of ma

we'll get numbers from deere, sodastream, kate spade, remax, cisco and agilent. >>> michael, good morningee you. here we are. dow, s&p up record highs. the russell 2000 down nearly 10%. a lot of people buying downside protection, i understand. why the divergence and what's that telling us? what's it telling you? >> i think the story of the markets over the last several weeks, you know, we had a nice rally off of february lows. then you had this massive divergence set forth. so the question is, do the high beta momentum stocks and small caps, do they bring the blue chips lower? or do the blue chips keep rallying and ultimately bring up the high beta, high momentum stocks? my view it's the latter. i think the overall take is really quite strong. what we've seen here is sort of almost a very textbook sequencing of new highs. for example, on april 23rd, the transports made fresh highs, followed by the dow. now just as you mentioned yesterday, the s&p 500. if you look at the russell 2000, for example, that index had been under massive selling pressure, but it has also been stabilizing at what

flip side, kate spade grew, stock up about 9%, and we'll end on the retail them to as well. sears holding is considering selling its canadian operations. sear shares, you can see there, down about 3%. also, bill, kelly, at session lows. back over to you. >> thank you very much, dom. sears has been soaring lately this month, about 20%. many say that stock is more of a trade than an investment though right now. >> if you were to make an investment in retail right now, which one would or should it be? joining us now with the top retail picks, liz dunn, and eric beador, an analyst over at green capital. welcome to you both. eric, i'm going to start with you because there's one in particular here that caught my eye, abercrombie & fitch. tell me about it. >> yeah. this has been an unloved name in an unloved sector the teen space. you look at what this company has done. they have gone to become much more improved in terms of corporate governance. you have a set of independent directors. you have the potential for further new management to come in in terms of brand managers, and whe

s are deck out your phone in a kate spade. pick them up at apple store last minute.ant a watch. pebble watch. talking to the ceo of pebble. most successful wearable smart watch in the country. kick starter campaign. they raise $10 million. get notifications, thousands of apps now built into it it listen to pan door rarl music. >> you can watch videos. >> can't watch videos. text message. fitness tracking. the whole nine yards. it's a stylish. >> like penny's watch from go go padgett. >> there you -- go go gadget. >> blue tooth, phone calls, conference calls, other things in the room. move it outside for barbecue and picnic. streams blue tooth so music right from the phone or other device right to that. >> it's hot pink for mom. >> that's right. >> kitchen thermometer? >> so you can set, you know, chicken in the oven or whatever else you can got going on. smart phone nabledz. so you can control the temperature from the app. monitor, and send alerts. don't have to be there hovering around the oven. >> i thought that the men were supposed to cook for the women on mother