do you like the chart on lululemon?> if we look at the one-year chart, $64 is a very important level. and then acted as it rallied at the beginning of this year. >> let's remember, this rally has occurred when the market overall has been going lower. >> the second chart is going to show you what we're talking about. this is year to date. what is really interesting is recently you see lululemon make a high or low even after the jobs reports numbers. that shows me that buyers are getting more aggressive. >> you sound like you like this one. >> what about that? is it took expensive? >> they have beaten the eps numbers that are 12% on average. the stock has not performing that well on earnings day with a plus or minus 3 to 5% move. and what we've seen very recently and 88% of the companies beat the consensus numbers that underperformed on average, 320 basis points. we think heading into the risk tomorrow could be skewed to the down side. >> so do you like this category? let's face it. the consumers for this category are ver

we will tell you all about that, plus a wonderful fashion show from lululemon live later on fox 5 morning news stay with us  >> an elderly woman whose bullying on a school bus became ava real video garnered -- viral video garnered sympathy and support of thousands of people. >> students near rochester new york, verbally abused and taunted bus monitor karen klein throughout the 10 minute video she tries to ignore insults and threats which target her looks weight and family you can even hear her crying during part of this, klein never filed a complaint since the video hit the web school officials launched an investigation. meanwhile an international donation site has raised more than $95,000 for the grand moth tore send her on vacation. >>> i just wanted to punch them is what i wanted to do. so that is why i stayed laid back and just tried to ignore it. because i really wanted to hurt them. you know, you can't do that. >> well, boy you can't blame her $95,000 that is going to be a heck of a vacation. four seasons here she comes. the school district has questione

i like lululemon very much since the show started. i don't want to back away from it. company has a history of beating numbers and lowering expectations which they did again. and it's been a great buy point. i know hank greenberg disagreed with me on "street signs." he has every right because tomorrow he turns 60. happy birthday, herb! anyway, i'm sticking with lululemon. let's go to tony, please. tony. >> caller: how you doing, jim? good, good, thanks. i'm calling about gol, brazil's second largest airline. i know they're down about 40% for the year. wanted your output for their long-term growth knowing that you got the world cup and the olympics going to brazil in the next coming years. where do you see this airline going and they're poised to grow? >> i don't like brazil. i don't recommend airline stocks. so you got like a double bear going there. so i'm going to most definitely say, no, no, no, sell, sell, sell. rock, paper, scissors. we are paper, spain's the scissors, china's the rock. are we still hostage to europe after today's action? yes. but at least china s

consider what happened to lululemon.t thursday they reported a terrific quarter but the guidance was conservative. i don't want you to get hurt and another expensive stock knowing that the same thing could happen to under armour if the results are anything less than stellar. morgan stanley still believes in under armour but that quarter is a way off. concerned that the share price already reflects all the near term catalyst so there is nothing to give the stock a real boost. overall this stock has gotten a bit bloated so you might want to take profits in some position until it sheds a few extra pounds. why did they add it to the u.s. one list the next day. they are flying off the shelves. clothing to underwear to footwear. the company is expected to launch a new running shoe. their products are selling like crazy. and a company that only got 6% of sales they need to rapidly expand internationally. but morgan stanley is also right. the stock is very expensive and i think that's more relevant. if you owned it on the way up

because between lululemon and man smuckers, it has not been a good week. >> lululemon blowout the number and lower guidance. this is the same percentage that they lower percentage. men's warehouse, i think the problem is they have too many suits and that is white collar firings and nonhires that i think is behind the men's warehouse miss. we still get momentum in the u.s. economy on the domestic side. i don't want to give up very positive notes about oil and oil service. don't forget, that's been the biggest hirer in america in the last two years and i'm not just talking about the spending of chesapeake and audrey mcclendon. that guy has probably raised the gdp.25%. >> melissa, what is the mood this morning, especially after china and going into bend? >> a bouyant and high expectations but people are not expecting much out of ben bernanke in the pits at least and broadly on wall street, the expectation is low but we are hopeful and so far the rally looks to be in tact. i'm curious because yesterday we had interesting movement in the home builders, very strong rally there. xhp was taken o

lululemon's outlook falling short of street's expectations.ng that it's just too expensive. from a technical perspective, even though the stock is down today, it is still trading above its 200-day moving average. >>> china today surprisingly cutting interest rates for the first time in nearly four years to boost its growth in china. is it a sign that china's government is concerned about growth and should investors be more concerned about what is happening in china more so than in europe? >> one of the many things that we'll be talking about right now, tom, ceo of the tmx group and executive and chairman and president, terry duffy: let me get something out of the way. the $4 billion bid on the table has been extended through the end of the july. where does that stand right now? >> out there for public comment, the period ended for most of them on june 4th. the british columbia public comment period extends through later in june. and then after that we'll see the final recognition orders and the competition bureau approval. >> and you think thi

our next trade, shares of lululemon lower again after anticipated second quarter weakness.s up 36% year to date so is it time to buy on the dip? now the trade of mike mar if i of rose cliff capital. we had an analyst on yesterday cautious on this name. you're not so much. >> no. judge, we love the name. we started buying the stock here right around the levels 63.60. reason being it's a name we have tracked for some time. this is a name that we want to own and pulled back 20% from the highs. almost 10% down on an earnings announcement yesterday that, remember, they beat revenue. they beat on guidance. their comps up 25%. they have raised the guidance a little bit lighter than the street was looking for by a couple of pennies but they're like the apple of athletic wear. new york city, judge, every woman going to workout is wearing this. it's a name that has continued growth opportunities. they're expanding. globally. i think it's a name you want to own. you can use 61, the 200-day moving average as a stop. it's broke down beneath that by too much i'd want to be out of the pos

it's safe to say you're not putting the red line on for lululemon.ld it be a takeover candidate? could somebody like a nike cruise in here and gobble these guys up? >> i'm sure it's on the radar screen because they're certainly the retailer to emulate. but it's not something that i'm necessarily looking for. >> wouldn't it be dilutive to anybody buying it? take a look at the peg ratio in nike. i mean it's going to be a very, very expensive acquisition for anybody. >> no. it would be absolutely. but, again, they're an early stage grower. >> roxanne, thanks so much. >> thank you. >> can you wait until we go to break to take another bite? >> i love these tacos. big fan. >> he just in hails it. >> coming up on halftime. two traders face off over the housing trade. we have a street fight on our hands next on the "halftime show." [ female announcer ] it's time for the annual shareholders meeting. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usu

lululemon reporting a 40% jump in net profit, however q-2 outlook falling short of expectations.tting hit. it is trading higher above its 200-day moving average. i'll keep it short, sue, sending it back to you. >> thanks a million. appreciate it. to the bond market and how the 10-year is reacting to mr. bernanke's testimony. rick santelli at the cme. how are we faring. >> if you put up an intraday 10, you are hard pressed to find out when he started, when he stopped, when spain was downgraded, it's a sta castic sideways day. open for a one-month chart, put everything else aside is that the outlier was the 140 close last friday and that was because of europe anxiety in front of a weekend. but it's normalized if 1.65 is changed normalized two-day dollar index just talking about extending the twist, even if you don't put something behind it still had a pretty permanent damage to the dollar index from some of its best levels from early yesterday. back to you. >> rick, thanks very much. rejoining me are art cashin and kenny. kenny, how much of today's rally might not be linked to bern

stock two, lululemon. first quarter profit was pretty good.stimates, but full year guidance came in below current expectations. same store sales for the low double digits. another retailer would be happy to have that problem, low double digit same store comps. >> yeah. and i listened to jim this morning talking about how he thought this was another quarter of lowballing. but when i looked at the charts and -- >> jim always thinks there's sandbagging. >> he always thinks that. but i saw sales margins up, gross margins down. and i see earnings growth down. those dynamics would make me start to wonder, you know, what's going on there? >> all right. downward dog, right? >> you got it. >> stock three, it could have been our disaster du jour, maybe should have been our disaster du jour, but i jumped herb and stole it from him. molina health care withdrew guidance blaming uncertainty in texas. barclays saying there could be a nearly dollar share impact from their problems. not confident the issues will be fixed. that stock's down 29%. more confusion

. >> i had an experience where they told you you wear lululemon or you wear nothing at all. wear like boxers. >> larry's nodding. >> i have some, yes. >> have you ever tried to wear boxers were the lululemon? you can't, you can't. >> my wife bought he some. she said i look good in them. >> i bet you do. you feel good when you don't wear anything but that, right? >> i can't remember how i felt. i thought it felt okay but i think i looked good. >> you worry more about how you look than you feel. >> now i'm going to go to men's warehouse, missing profits, he says you're going to like the way you look. >> when we come back, we'll talk about what larry thinks of equities right now and where you should be putting your money. we'll talk about all that with the largest money management firm in two minutes. plus more with sean parker. we're going to find out what is grabbing sean parker's attention and where he is looking to invest next, too. squawk will be back. should be putting your money. >> how do you feel about it right now? >> my views haven't changed. from my first call in oc

lululemon is higher.lulemon and under armor is from north america. as long as that is good, investors are looking bullish at those names today. last but not least, pay attention to the fourth u.s. ipo this week officially ending the facebook drought we saw for a month. shares of service now up 29% in the first day of trade. the price range was from 15 to 17. ending up pricing at $18. nice rally for that cloud computing company today. carl? >> court, thanks so much. >>> as we pointed out earlier, markets have been in rally mode all day long. want it bring back director of floor operations of usb services. nice to have a repeat, double header with you today, art. >> thank you. >> i keep hearing the theme that people who were longer able to sell out of some longs today. going to a more neutral position and 245 maybe the shorts are responsible for today for a long degree. >> i think the shorts are overwhelmingly responsible. it starts with currency shorts we had a huge amount of shorting in the europe. and ev

keep an eye out for results from lululemon and from jm schmucker. about 36 points higher, nasdaq almost 10, and the s&p 500 up by 4. so joe clark, financial enhancement group, joining us for a preview of the trading day. what's driving market action, what will it take for this risk rally to continue? >> we've already got it. the joker is in the deck. one in europe and one here at home, the united states. i remember back in the late '90s with the greenspan briefcase watch on cnbc every day as we would watch him go into the federal reserve. the jobs number will come out, but all ears are on the fed. not that we would ever think about insider trading, but if i could sneak into if i board room in in the world and get any newses that i wanted to know, i would want to know exactly what bernanke was going to say and when because that would be the trade for today. and until the next qe program unwinds. >> does he have to indicate more quantitative easing, is it enough to not say they're not doing it? >> you kind of got this sidekick thing working. to a degr