kate spade and michael kors. orking and whether which one is worth buying. yep, it's kate versus kors! these are two companies that have a lot in common. even when you look back in the rear-view mirror they've had different trajectories. michael kors, for example has been around for 30 years and it only came public in the end of 2011 and since then the stock has been going higher, pretty much in a straight line if the company reported a strong carter. they never had hair on it it. kors has become one of the most popular high-end brands out well selling a ton of handbags from 200 to 800 dollars any women's apparel, kors has licensed out the brand to fossil for watches and jewelry for a decade now and it's not surprising when fossil reported the ugly quarter the one bright spot was michael kors' branded merchandise. kors is taking share especially from coach and its brand already popular in america is starting to grow awareness overseas. kate spade, on the other hand, very different story that somehow taken them to

we like kate spade. it's one of our better ideas. g we like about kate is the operating margin and the immaturity of the brand. it's a 4% market share business that could double revenues and operating margins. coors is doing phenomenonly. i think you can see the skittishness that that's a risky proposition to buy a peak margin business. >> thanks for your time. coming just a couple weeks before its analyst investor day on june 19th. no big deal. it hasn't had an analyst meeting in years. >> in years. >> what do you anticipate? >> we are long the june regular expiration june 40 puts. we're long those because a few things. they have the big analyst date. they have a new ceo. he is not new to coach but to the position. this is his first big outing. we think that it is very likely what we -- where they just reset the bar entirely. clearly this brand has been in trouble -- i mean everybody taking part of their share but everything seems to be going wrong. i think that's a chance for him to reset the bar lower. with all of these analysts co

you have other names in retail to play and make money. >> like kors or dick's. >> or kate spade. >> redefineit's not a kors. this isn't about kors, spade or dick's. >> fair point. >> it's worth the trade in coach. >> tell us who you think won the debate. use hashtag bull or hashtag bear. want to move on to unusual activity. options traders are making bullish bets on two stocks today. dr. j, here we are at the wall. the unusual activity. we'll look at disney first. these are the january 80 calls. why do they jump out? >> somebody bought a lot of calls here. with "maleficent" and other successes disney had, we are in the theme park season. these have jumped up from the 5 level to over $7.80. they took profits today. they rolled up and out. they rold out of those into the april 100s. that's a lot of upside for disney. i followed it. i'm long that one. >> we are at the telestray tor. i couldn't remember the name. one of our producers today flagged down interesting movement in apple. are let's talk about the apple october 675 calls. >> max flagged it. i talked to dan nathan and brokers on the flo

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

stuart: kate spade. i know kate spade. >> they make great bags. fabulous bags. was looking at kate spade. up about 3%. less than tesla. go back to angie's list. bank of america made a buy on that one. stuart: we will get back to you. the dow is up 68 points now. 95.5 points from 17,000. all right. i said earlier it was a disappointing jobs report. there was no surge in job creation in the month of spring. 217,000 new jobs in may. over a third of them are low-paying sectors. mary, i said that is a disappointing report. i characterized it negatively. what would you say? >> it is a modestly good report. i wonder if they miss that irony here. we are starting to see these modest gains. there is a long way to go. >> there are easy things to do. they create jobs. build the keystone pipeline. >> disappointed in charles. are you going to disagree with me? >> considering high taxes, considering all the revelations, this shows the reelection for the white house and the president kept saying he would build an economy built to last. no. we already have it. the dna is still i

consistently and may negatively impact the districts, this slide shows a recent example, jack and kate spade are owned by a location that has no brick and mortar locations, and the proposal is to count the subsidiaries may not even capture the retailers that it intends to regulate. further, while there may be the economics of scale for the businesses the formula retail controls are premised on the standardized features, it can also impact the small business owners that create the unique concepts this is an example of such a case, the owner of super duper burgers owns the six other unique restaurant under the intent of the proposed legislation, when they reach a threshold to become a formula retailer, and any future businesses proposed by the owner will be subject to formula retail controls. each of the other businesses are truly unique and do not contribute to a uniform asthetic including that they will have a negative number of impacts and including limiting business development, and the change will likely be inconsistently applied as they will be unable to verify the ownership of the struc

some of them, like coach, is getting absolutely massacred by michael kors, by kate spade. when you look at these individual names one against one, there are winners, there are losers. >> look at the bigger picture. that's why i brought up owens corning. housing is 40% of the economy. if that's starting to slow down, all these stocks will break. >> how about the idea of these rail stocks moving a lot of the different parts that we talked about when we're talking about housing? we talk about energy, but we also talk about lumber. we talk about a lot of the things involved there. look at the way those stocks are trading. look at unp. some great performance out of these rails. >> crb, the commodity index s at 21-month highs, by the way. there are certain reasons why the rails and shippers are doing better. to say the consumer is under pressure, that's the blanket statement i think we're making. michael kors, great company, great growth. even then, that stock is running out of gas. that makes sense to me. that valuation doesn't last forever. >> how about about this, though. whe

. >> it is some names like under armour, kate spade. >> there are a lot of companies that have prettyations. but they screen for companies that have one over a billion cap the market. operating expenses that exceed revenue growth. also, the underlying criteria is that they don't do dividends or stock buyback. of course, you have seen that they outperform the s&p over historical time. the thesis itself is compelling coming as a matter of whether it will actually play out. >> it is a fascinating story. that is it for "on the markets." smart" starts now. welcome everyone to the most important hour of the session. defeat,tor surprising the republican jockeying to take his place. the sharpest minds in los angeles, we will talk about

and the spin off like black fleece, a spin off of brooks brothers, or jack spade, a spin off of kate spade, and be viewed as formula retailers either. so i would like to ask you to please, help to protect north beach. and neighborhood businesses throughout the city, by keeping the exemption, or keeping intact, the 11 business threshold that is currently in the code. and please don't endorse, weakening formula safe guards that are currently in place, thank you very much. >> thank you. >> next speaker, please? >> good evening f, my name is paul weber. >> could you use the microphone. >> could you use this. >> my name is paul weber and i also live in north beach. and i am a member of tell graph hill dwellers and one thing to keep in mind if you would when considering this, is that tell graph hill dwellers is made up of not only businesses but the people who live there. and live like living there because of the uniqueness of the character of north beach. so, we are very supportive of our local businesses, and i have some comments about that. but, this is not just a business issue, this is a wa

kate spade doing well. micha michael kors has been a horse, has it thrown a shoe or a leg?ributor and writer for the street.com reality check herb greenberg has implied, what happened to toomey? restaurants are the toughest of all. we saw chipotle have terrific top line numbers but can the bottom line regain the luster? apocalyptic pricing for certain. panera bread was so predictable. but have the prices gotten too high for panera and chipotle? is that why applebees and ihop are surprisingly strong? especially when you have a waitress or a waiter serving you. everyone is ready to pounce on any little chin little change. that's why you need to invest in them for multiple years, not trading for multiple hours. frankly any other way of looking at it is a recipe to buy high and sell low. the essence of bad investing. stick with cramer. >>> i'm going back over the charts, i really like this idea of isis, regeneron and celgene. the >> the following is a cnbc original production. [ music ] >> marijuana is the most profitable illegal narcotic. >> this is a huge business. uh, in cal

piece across the knows here -- nose here, wax tip, from the jack spade accessories, version from kate spade, polaroid, fossil juicy cute our aviators not going out every style any time soon, all different shapes size z- if you don't want to break the bank but want a nice pair every shades, do you have anything for that? >> everything i am showing today, we start at 39.50 for the forward tip sunglasses going to up about $106 minus one pair more expensive. everything else is fairly affordable, and obviously we have glasses, you know, fen i gucci, dior, et cetera, that go for 350 and up. >> real quickly, do you have get a pair for your face shape. >> yes. >> hard and face rules? few second left. >> sure. you want to dot smile test for one thing. you want to if you smile make sure glasses don't rise up off of your knows bridge, will help you know if they fit or not. you don't want the glasses extending off the side of your face too far. then again they don't fit right. >> let's see what you have smear. >> we have to send this to break real quick. >> what do you think? >> gucci beautiful the bam

. >> and kate spade came on.o i mean coach turned out to be -- you know what bags sell well for coach? the retro. you go on ebay your can get a coach bag from 1960, those are what is selling. but you are not getting any traction from this current line. i thought this shoe business was going to be good. the shoes look really good at coach. i may not be the judge i would like to think of women's shoes. >> i cannot unsee that image in my head. >> they did not have toe cleavage. know toe cleavage which what is you have to have. jimmy choo has. jones, it's true, jones new york gave up. they did -- stewart whiteman. decided to sell. accessories are a hard market and in the meantime even kors' stock is down. my friend herb greenberg, saying there may be inventory issues. but coach is flailing. new ceo not happening. this one may not be done going down. >> no. this is where we really need a woman in the 9:00 a.m. someone who would wear a pair of shoes like that. >> i think -- >> i think he covers the landscape pretty ama

michael kors, ralph lauren, kate spade, tiffany, all lower, some off their session lows. >>> kroger,rket operator, reported better than expected first quarter profits. you see those shares up 5% on the day. >>> then there's ge advancing after presenting an improved offer that would create three -- three -- energy joint jen tur. the ceo of ge saying that the price of the deal will be adjusted to reflect the joint venture status and not the outright deal. >>> we'll end with cellgene. a two-for one stock split has been approved. those shares will go from you will $165, closing to $80, $85 a share on that news. >>> i hope are you all sitting down for this one. our next guest is calling for dow 10,000 by early next year. right now of course take a look. we're trading just about 100 points away from dow 17,000. >> we're about 38 points away from an all-time high on the dow. harry dent is the man, here to make his case. also with us to take the other side of the trade, kenny po polcari. >> we've been saying for years the demographic trends, baby boom spending, peaked in 2007. ever since the