. >>> coming up, a sweet comeback, how krispy kreme went from fast food favorite to flameout and back on top again. first a look at the treasuries and currency today. >>> krispy kreme was one of the hottest brands in america just over a decade ago. the doughnuts were mouth watering for investors. the stock price kept getting sweeter. then it all sizzled. the company's comeback was anything but easy. >> forget the dot com bubble. >> the horror. >> back in 2000, there was also a doughnut bubble as yours truly reported after krispy kreme went public in a frenzied ipo. the stock is trading at nearly 70 times next year's earnings. >> krispy kreme eventually topped $100, then the company fell down a doughnut hole. the stock plummeted and management ho go. now the compa 17 straight quarters of same store shares growth. they have outperformed markets. they promise to go from 940 to 24 stores by 2017. >> i don't know the number for the right amount of stores. but it's in the thousands. >> they just make it with less. >> for lack of a better analogy, it's the n & out of doughnuts. >> could have

krispy kreme really needs to figure out what they need to be.rt-term you see any profits out of this name. they topped out after earnings. last quarter, i don't think in two weeks we'll see anything spectacular. >> i do think, though, it was a pretty incredible turnaround story. this stock was left for dead a few years ago. it's done a great job getting back to an earnings profile, it's appealing to investors. i don't think this is a good entry point. >> well, good point. and a doughnut's round, so when you turn around, you're right back to where you started. that's where they're going to be. >> nice one there at the end, joe. joe, enis, thank you both very much for that. we'll see, scott, if it stumbles and people can then find a reason to fundamentally like the krispy kreme story long-term. but they've got to figure out what they want to be. >> well, we've got 30 minutes to go. they're still fighting it out. 30 minutes to go before the bell rings. dow is now a little more negative than it was, you know, 10, 15 minutes ago. we're down about 34

krispy kreme has a recent history of big surprises affer they report earnings.n a beat or a miss on eps by a pretty large margin in seven out of those 11 recent quarters. dagen: i want a dozen hot krispy kreme donuts in one sitting. i did that once in high school. they were delicious. >> i am so jealous. dagen: you should be. thank you for that. lauren simonetti. we have the editorial board member at the wall street journal with us now. >> love to talk about how much the wealthy benefit from tax breaks. they do not like to talk about how this results from the tax system that they prefer. we do have the top 20% of earners sending washington 70% of their income taxes, we knew that the top 1% paid 37%. this is the inevitable result. dagen: some of these tax breaks, the charitable contributions that anyone could make him a mortgage interest reductions, for example, it turns into a hit list. >> there is an argument for tax reform. the question is whether the president is serious about doing it. traditional tax reform means lower rates in return for closing loopholes.

>> michelle, quote, krispy kreme doughnuts strong results should continue.nty of dough in doughnuts. krispy kreme was one of the hottest ipos. >> some analysts are still shocked. it is pretty priceyy for a doughnut. >> wow. nice hair. too pricey. it grew too fast. it was accused of channel stuffing. it all nearly went down the doughnut hole. stock fell to a dollar. now the company just reported its 17th straight quarter of same store sales growth. it matches dunkin'. the ceo tells us they will go from 540 to over 900 stores by january 2017. >> we're a 76-year-old company. but the truth is this group, the team gave a new start. they turned it around remarkably. now we're pretty doggone excited about the growth. i think sometimes they think it's just a doughnut. it's not just a doughnut. >> you can see shares. chris terry owns a half million shares. >> the risk here i think that the new units don't generate the types of sales and profits that the franchisees expect. >> at some point, and we may see this -- i don't know what their plans are -- different product

the only thing better than eating a krispy kreme doughnut is making money on krispy kreme donuts.ck is jumping after-hours. it reported strong earnings for the fiscal first quarter a short time ago and profits soared by 33%. it boosted its full year outlook. >>> everyone is look forge a cheap way to save on health care these days before obamacare takes effect in january. for some businesses the answer may be to self-insure. that is when a company pays employees medical costs outright. may seem like a deal up front. but if some up with gets in an accident or gets really sick it could end up costing big bucks and potentially bankrupt the company. here to offer advice how it works and who should be considering it, paul howard, manhattan since statute center for medical progress. thanks for joining us. tell me how this works. >> basically if you're an insurer, pardon me, if you're a small business and can under the state regulations i will pay all of my claims for my employees for insurance myself. you will pay a small fee to a company like united health, a larger insurer to handle th

well, we got -- no sooner had we finished up with lionsgate than we've got krispy kreme.ir earnings, what are they? >> reporter: yeah. the stock just popped 4% on these good results. krispy kreme beating wall street estimates on earnings bringing in 20 cents a share, wall street looking for only 17 cents a share, and the top line revenue also beating wall street, coming in at $120.6 million. wall street looking for $116.27 million. the company raising its forecast earnings outlook for fiscal year 2014 as well. that's another good sign. and same-store sales for this doughnut seller up 11%. anytime in a big retailer like that you can do a double-digit increase in same-store sales on something that really makes you fat, that's pretty impressive, guys. liz: well, you're looking at that big number. again, a rounding error, but 11.4% for same-store sales for kkd. this was a company that was so hot in the late '90s, 2000, and then suddenly it became too hot. to see it come back like this is pretty fascinating, isn't it, dennis? >> reporter: it sure is. these food fads go in cycl

we talked about it earlier, costco beating the streets, krispy kreme reports after the close later thison so we will keep watching those stocks. >>> time now is 6:55 and charges could be filed today against a driver accused in a deadly memorial day crash that took the lives of three people. 25-year-old paul diaz was due to be arraigned yesterday but prosecutors delayed the hearing because they are still waiting for toxicology tests. now, witnesses told police that diaz maersk going as fast as 75 miles per hour when he crashed on hillside boulevard and sheared his car in half. all three of his passengers died including his fiancie. investigators say diaz ran from the scene but turned himself in a few hours later. >>> a federal judge has ruled a brutality lawsuit against the san francisco sheriff's department can move forward. ktvu news was the first to show you a video of the incident at the hall of justice in 2011. daryl hunter says he suffered a concussion and other injuries when several deputies punched and kicked him after his arrest. hunter says he didn't do anything to provoke the

call up kkd, krispy kreme. did you see what krispy kreme is doing today?ge move on the upside. >> better than expected earnings. it's up 22% right now. >> and it's had a huge move this year. >> it has doubled in the last six months. >> yeah. >> just saying, as they say. >> but, bill, this market, looking at the dow and s&p 500 on pace to close with the lowest levels in about 2 1/2 weeks. in the last two weeks, there happens to be a little bit of a sentiment change that people are now expecting that the fed will begin the tapering, sooner rather than the later. >> i'll be back! >> this year is obviously the beginning of the tapering. >> if this sell-off today is about the rebalancing, it will be very interesting to see if monday they buy this dip or if this is the beginning of a sell-off. we've talked for weeks now whether this is the beginning of a change in momentum for the market. we're down to a 2 1/2 week low. this is going to be, if we continue this selling, be the first time this year we've had two consecutive down weeks for the dow and the s&p. >> i

usually the only time he picks up a dozen is when he goes to krispy kreme.id, i'll think about pancakes. he said, i'll collapse that bridge when i get to it. talk about his initiative, let's sit, on twitter. he tweeted out, really, jimmy fallon, another joke in the monologue? you guys need more material. and i go, you know what needs more material? your suits. >>> back to "hardball." this is the sideshow. first, joe biden spoke to a group of first responders in washington, d.c., last night, and thanked them for coming to his aid in several past emergencies in more ways than one. >> in 2004, that summer, i was down here doing a sunday program and lightning struck my home and destroyed a significant portion of it. and you got my wife out. in addition to my wife, you got my second best love out of the house, my '67 corvette. so thank you, all. and so i owe you. when i say i owe you, i mean i owe you. >> the vice president really does have strong feelings about his corvette. in a 2011 interview with "car and driver" magazine he said, "i still have my 1967 goodwo

. >> krispy kreme reporting better than expected quarterlies on improved sales.result it raised its full year forecast. the stock is up about 87% year to date. simon? >> wow. in today's yahoo! finance poll we asked you if jack grubman who was banned and disgraced when he says wall street has not changed as all, what do you think. 2% say it's a change for the better. 7% say i think thing are a little more fair now but 91% say wall street is still an insiders game. jane wells is in los angeles with some advice for those who think that it may be too close for comfort. how close will it come, jane? >> oh, not that close, but close in galactic terms. if it's not one thing it's another. but anyone who has gone to the movies knows that the government is totally on top of the situation. >> what is this thing? >> it's the size of texas. >> what kind of damage? >> total, sir. >> my god. >> the united states government just asked us to save the world. that's about 15 doesn't this fall under act of god? >> it does not appear in a standard home or auto insurance policies. it

i think i would like krispy kreme. cheryl: one of my favorite ipos. nicole, thank you very much.165,000 jobs. rich edson standing by in washington with the latest on the political reaction to all of this. >> still short of what economists say, we'll april numbers are decent, the bureau of labor statistics say the economy added 332,000 jobs in february, 64,000 more than first forecast, the highest monthly total without counting census numbers since 2005. at the white house, cautioned not to overemphasize one report officials say the economy continues to rebound. speak of the general pattern we see as one of resilience thinks resilience of american families, american workers, american businesses we are continuing to dig out of the deep problems created by the recession that began back in 2007. spiegelman while house speaker john boehner in a statement says there is good news in today's report, but the president policy still are not providing a robust economic growth and job creation the american people desperately need. he says those policies include balance the budget, overhauling

. >> and as krispy kreme donuts. not as delicious as the. >> i will tell you something.omp store sales were really strong. i don't think i'm on the call back list. you mentioned k eed cronuts wit maybe this is with a k. >> i took a test drive and i took a test drive. >> it's such a great car. that big display with realtime traffic, you can't help but like that. that's the car, that's the company and then you have got the stock. with so many companies where the stock overshoots the company. you don't know for how long. >> just because. bottom line on this one is just because you love the product does not mean you should be investing in the stock. >> you have to understand what the risks are. >> okay. solar city. >> i have been talking about it for the past week. this thing -- this price, forward priced earnings, 27. that's huge. >> amazon and netflix. >> these are examples where people love the products. who would say amazon is not one of the best retailers out there. but the fact is where -- we saw what happened in netflix. i don't know. but what you do know is these are

krispy kreme raised full-year numbers about.e finding ways to get customers to eat more than doughnuts into their stores again. finally, guess shares, another big winner. the story behind guess, earnings were down sharply 63%. north american and european sales were weak. but guess what? down 63% actually beat the company's targets and they're a winner today. consumer discretionary stocks are down as a whole. back to you in the studio. ashley: dunkin' donuts and chrispy cream i'm in. lori: did you have lunch before you came here. ashley: really bad food. lori: talk about proctor & gamble. there you go. message for the ad agencies here, that shill for its products is hurry up and wait. dennis kneale is here to explain. >> that is the message proctor & gamble is giving ad agencies when it comes time to pay the bills. p&g, one of the biggest advertisers, forces advertisers to wait 75 days for p&g to pay them. that is 25 days longer than old period of 45 days that is 66% longer delay. in grocery store chains wanted to force p&g to wa

show you the insides of a brand new boeing, and, yes, i chipped my tooth telling you not to touch krispy kreme with a ten-foot pole. i ate dog food. i am not concerned too many of you skipped the homework because you lacked the proper motivation, interest, or enthusiasm. i will make the stock interesting to you. we have ways of making you motivated. the bottom line is, it is important for you to know why you are doing all this work. what the point is. it's a way for you to build conviction in your stocks. it's a way to get an edge, one that's totally legal, even in the most volatile or calm of markets. in the era where so many panic at the sight of the president coming on the podium or the speaker of the house giving a press conference, you need to know that it might be a buying opportunity and not just a selling one like the panickers all around you. i need to go to tom in florida. tom. >> caller: hey, jim, a big boo-yah to you. hey, jim, in january, i invested deep in the honey when the stock was at 43. the stock still seems to be going strong and i'm up 104%. should i close out or hold on?

we've got lionsgate and kristy creamcomming up -- krispy kreme coming up.talk about the overall market. liz: for that we turn to lauren simonetti at the new york stock exchange. we were looking at solar stocks getting quite the boost after a pair of upgrades by goldman sachs. >> reporter: yeah. the recent rally for solar stocks really didn't phase goldman sachs. they're quite bullish on the sector, and you can see some of the names surging. first solar is one of those names. i mean, this is the stuff that over the past year is up more than 300%. the solar sector pretty strong today. david: for over a week we've been hearing about this possible split in sony. they're thinking of moving the motion picture division away from the gaming tuition. all -- division. all this talk seems to be having an effect on the stock which is way up today. >> reporter: more than 3% at last check. sony reportedly working with citigroup and morgan stanley to explore that proposal to split off the entertainment business. liz: financials leading today's gains with a few big banks h

usually the only time he picks up a dozen is when he goes to krispy kreme.e said he'll just think about pancakes. he's like, "ah, i'll collapse that bridge when i get to it." get your breakfast from each place -- talk about his initiative, let's sit. well, if chris christie's fine, then stop blocking the sun. [ cheers and applause ] i don't know why we do it. >> steve: come on! it's fun! >> jimmy: he's a good guy. he -- we kept doing jokes about him. and he's on twitter and tweeted at me, he said, "really, jimmy fallon, you're going to use another joke in the monologue, you guys need more material." and i go, "you know what needs more material?" [ laughter ] -- your suits. [ cheers and applause ] don't mess with me! don't mess with me, man! [ laughter and applause ] hey, guys. this week marks the 10th anniversary of the professional networking site, linkedin. which is weird, because on linkedin, it says it has 15 years of experience. just weird. [ light laughter ] >> steve: think about it! >> jimmy: interesting. did you see this yesterday, australian prime m

usually the only time he picks up a dozen is when he goes to krispy kreme. think about pancakes. he said, i'll collapse that bridge when i get to it. talk about his initiative, let's sit on tweeter. he tweeted out, really, jimmy fallon, another joke in the monologue? you guys need more material. and i go, you know what needs more material? your suits. >>> back to "hardball." this is the sideshow. first, joe biden spoke to a group of first responders in washington, d.c., last night, and thanked them for coming to his aid in several past emergencies in more ways than one. >> in 2004, that summer, i was down here doing a sunday program and lightning struck my home and destroyed a significant portion of it. and you got my wife out. in addition to my wife, you got my second best love out of the house, my '67 kor vcorvette. so thank you, all. and so i owe you. when i say i owe you, i mean i owe you. >> the vice president really does have strong feelings about his corvette. in a 2011 interview with "car and driver magazine" he said, "i still have my 1967 goodwood g

and krispy kreme beat the street and raised its full-year guidance.ck moving higher in after-hours, up about 10%. and lion's gate, the entertainment company handedly beats expectations. revenue copping in at $776 million, the stock surging after-hou after-hours, up about 4%. >>> it is day three of our bargain stock series. our guest stock pickers say ebay and delta are two names you should be adding to your portfolio right now. joining me now, patrick caser and martin sash. patrick, kicks off. your bargain pick the delta. what makes this a bargain? >> it's a great company in an industry that's been unloved. it's the best operator, was there are four things that are going on. one, the industry has consolidated, there's a lot more casual competition. second, capacity disappointed. they've been a lot more disciplined in the way they're putting seats on the planes and filling them. they're returning cash to shareholders, both through a dividend and a buyback. unusual to see dividend in an airline stock. also, it's a very cheap stock. the stock at six time

it's time every time you go by a krispy kreme. five guys hamburger. every time you see a really good cinnamon bun, you go, okay, i'll start the diet in an hour after this baby. >> i haven't had a cinnamon bun in about five years. let me tell you -- >> they're really good. >> a lot of cliches about presidential politics. you and i know that. michael knows it. one of them was age. ronald reagan disposed of that. another one was the idea you can't have an overweight president. sure, we haven't really had one since william howard taft. i think chris christie could have won votes as a guy who was heavy because he has a remarkably uncanny sense of how to communicate with people. >> doesn't he? >> i don't happen to agree with him. i wouldn't have voted for him. >> isn't it something? i'm not sure you wouldn't. you probably wouldn't. you're a real progressive. i've made exceptions for different people over the years, people, i liked them a lot more hahn the other democratic candidate. i'm not a regular voter, i started with arlen specter, for example. i moved

and lauren, krispy kreme, a name a lot of people know and the stock is up big. >> it's up double digits.8%, then they've raised their names. same-store sales for a donut maker increasing by 11%, that's a huge margin. i want to point out the volume on the stock at 1 million shares and growing. the average daily volume is 1.1 million so this is a huge stock and a huge winner today, a huge winner, i didn't contribute this quarter, but-- >> i did, here. charles: you can afford to. we'll talk to you again soon. now, let's get back to the story, purchase of smithfield food by a chinese company is raising serious red flags in washington joining us by phone is rosa deloria, from connecticut. good morning, congresswoman. >> good morning. charles: first thing, you think that raises food safety concerns in america? >> yeah, i think that this does a potential merger, [inaudible] it raises questions about their economic concern around it and also, the agency that is -- is investigating the merger really doesn't have the ability to focus in on safety issues. and it's just because it's national securi