can lululemon, the one-time billion dollar company return to the customer? stomer?>>> the chairman of the federal communications commission is asking telecom and cable companies to step up and take the lead on cyber attacks, tom wheeler urged companies like time warner to take responsibility and accountability before the agency has to impose new regulations. >>> and shares of lululemon, after shares plunged 60% last quarter lowered the outlook for the full year. shares fell south, 16%, the upscale clothing company says it is due to the big tax bill. but as courtney reagan reports lululemon is getting squeezed from all sides. >> reporter: it was a lemon of an earnings report for lulu and the retailer is not inspiring much confidence that it will get better any time soon. while lululemon reported a better than expected first quarter and a $50 billion share buyback, the unexpected news that cfo john curry will retire at the end of the year is concerning investors. adding to that, the founder and board member chip willson continuing to bring tensions to the lulu family

lululemon. maybe analysts should have listened to regis philbin last week. >> lululemon is one of the stocks that i have and we called three different lululemon stores. one in texas. one up near boston. three of them and not one of them answered. >> did they know it was you on the line? >> no. but they should be answering their phone just in case somebody wants to buy something. . (announcer) at scottrade, we share your passion for trading. that's why we give you the edge, with innovative charting and trading features, plus powerful mobile apps so you're always connected, wherever you are. because at scottrade, our passion is to power yours. you really love, what would you do?" ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what if that person were you? ♪ when you think about it, isn't that what retirement should be, paying ourselves to do what we love?

faking fun of the l word, lululemon them not able to see.also, companies seem to act on their values when they also see the numbers match it. the stock price plumbs we see the company decides to act. they lost 67 million on the product, by the way. >> what ends up happening, when founders put up this fight against the board to gain more control and shift directions? >> they put up a battle, they rarely win. the founder of chock full of nuts, he ran his company for 62 years, including the last two years flat on his back at the hospital out of commission with his physician as coo full time. that's rare. in that case they didn't win. look at founder of kentucky fried chicken harlin sanders lost, found or of holiday inns lost. they are not going to win. once you decide your private dream has become owned by public owners. it's unacceptable especially for a public company. >> thanks for joining us on these two shakeups. >>> hampton pearson has news from the supreme court. do we have a decision on aereo? >> no decision on aereo, simon. but the sup

it's lululemon's ceo first full quarter at the helm.nd he notes in the earnings release, quote, despite a reduced outlook i'm confident the work we are doing today will only enhance our premium positioning as we continue to lead as the market innovator but on the earnings call wall street looking for something a little more concrete when it comes to what lululemon is doing to actually get there. we haven't heard a lot of true action plan from this new ceo yet. the yoga wear retailer announcing a $450 million share buyback and the retirement of cfo john currie, though like former ceo christine days retirement, the replacement has yet been found. currie will stay on to the end of the fiscal year. despite founder chip wilson voting his 26% stake against board members and chairman, both have been re-elected by shareholders along with the rest of the board. but, of course, outspoken chip wilson making his feelings heard that perhaps those two board members don't fit as well with the core brand at lululemon. now the earnings call currently un

lululemon shares tanking bigtime.ate couple of minutes ago you said this was the stock to watch. >> charles tomorrow morning i'll be watching lululemon. they haven't quite convinced me i need to spend $100 on yoga pants. analysts are expecting gains of 32 cents a share. the two big pr nightmares last year and this year with the see through pants and the fat comments. charles: a lot of people are saying buy lululemon this week. that's the plank. i didn't jump on it. you avoided all the hype on wall street. you knew the rumors were wrong, kate, take a bow. >> you knew it was wrong and i love how i said i was watching it. don't be jealous, matt. charles: no one bought thek aft unprecedented warning. would you buy the stock now, kate? people saying it's oversold. >> now, they're having all this corporate drama too, and the ceo came out and said it feels like our parents are fighting and it's awkward. so many pr scandals one after another, and like i said, i think the pants are too expensive. >> when can you buy yoga pants

lululemon shares down big time. we have a heated debate on that stock. plus find out why stiephanie sas it was one of the worst conference calls she's ever heard. 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. >> let's do our trader blitz, four trades on four stocks. first up, amazon launching its music service today free for prime members. pete? >> it's very interesting to see this happen. you can transfer your song list over to make that part of your play list. this is a direct assault on all the streaming but specific spotify. these guys are getting it free through their prime. amazon is getting very aggressive in the space

i think those are lululemon specific.elay any message on the broader retail landscape. >> department stores and retailers are pretty much doing ok. electronics makers were not giving as well. >> electronics sales come if they look at it year-over-year, it was still weak. not only do you have deflation, but that category in general is really going to online retailing. >> amazon eating those businesses away. don't focus on electronics. their main business is our peril. -- apparel. >> what our seasonal trends we can expect into the summer? thatu have to keep in mind july is a clearance month. retailers will start to clear out inventory to make room for back-to-school fashion. have mother's day and graduation and father's day. the two big retail seasons are back to school and christmas. >> margins for the summer will not be that great, either. >> probably not. if you look at the retailers, they ended the first quarter with more inventory than they would have liked. it we do expect steeper promotions -- >> what are things you

yoga gear maker lululemon is getting stretched today. the company's biggest shareholder has completely lost his zen. >> no buts about it. in that story. >>> time to put on your thinking caps. a mystery chart for you. can you name this stock? best performer this week in the s&p 500 that's not involved in the possible sale of takeover rumors. that would be ibg and family dollar. who's the best performing name? we'll let you know. we're back after this. did you remember to pay the dog sitter? yeah, citi mobile. and deposit that check? citi mobile. pack your bathing suit? wearing it. niiice bank from almost anywhere with the citi mobile app. >>> lululemon taking a beating today after reporting a 60% plunge in profits. the drama does not stop there. let's get to courtney reagan with more. as if the report today isn't raising red flags. statements made by the founder yesterday should have already had them waving high and loud. >> again, right? i mean, not only is the company struggling to hold that warrior pose issuing disappointing guidance g

here's a look at shares of lululemon.out 2.5% today as rumors that a boardroom shake-up swirl. according to the "wall street journal," lululemon founder and former chairman chip wilson is reportedly working with goldman sachs to regain control of the company. for more on how this may all play out, let's bring in two retail veterans, don peebles, ceo of the peebles corporation, and dana telsey, ceo of telsey advisory group. it's good to see you both. don, you know, there's also, of course, a battle separately at american apparel for control of that company. what do you think is happening with the board, having been familiar yourself with a few, you know, with the board room setting, what do you think is the conversation they're having about chip trying to regain control now? >> you've got tug-of-war. you've got entrepreneurs are innovators, they're transformers. then when you grow a company, it needs great management to grow it to the next level. and what's happening now is you're seeing this tug-of-war between the innovat

earnings before the bell, lululemon, scarlet, did they ever fix the pants? bring me up to date. >> they did. and they made comments that were not flattering, so people kind of moved on. >> do you wear lululemon? >> i have a couple of pairs. i have them in distress. >> who are you wearing this morning? >> this is karen millen. i think she is british. >> i cannot keep up with you guys. and you your alpaca with your british designers. bushe herbert walker turning 90 years old today, tom. >> that is really something. this is bush sr., of course, one of the euros of midway. >> iconic image of the submarine pulling up and literally pulling the young bush out of the water. happy birthday, mr. president. nba finals, game four tonight between miami heat and san antonio spurs. and as we are talking about the world cup, first game is today -- brazil, croatia, 4:00 in brazil. >> we will get a data check. a look at equities, bonds, currencies, commodities. moving, euro-dollar where they were, nymex crude, this of , brentn oil, $1.06 crude, let's move onto the next screen

lululemon, up just a tad. >>> all right, we mentioned this earlier.sh rock legend sting is sending a -- ♪ message in a bottle, yeah -- to his children. >> you were dying for that opportunity. >> telling them the need to make their own way in the world. good man. speaking to "the mail" newspaper on sunday, the star said his kids won't be inheriting much of his fortune, as he doesn't believe in trust funds. neither do i. in any event, sting, estimated to be worth nearly 200 million pounds -- >> wow. >> ca-ching. said there won't be much left of the money soon, as he is spending it all! >> you're not going to leave all your millions to your children, sri? >> absolutely not. >> really? >> millions in indonesia terms? because i don't have that much money. i'm going to mooch off my kids. anyway, do you agree with sting? is passing on your wealth to the younger generations a bad idea? and do kids need to learn the value of money, ambition and hard work? join the conversation here on "worldwide exchange." get in touch with us by e-mail or by twitter, @cnbcwex

. >> lululemon gearing up for earnings to neutral from underperformed.t. 90 seconds to make your case. kicking off with the bull, dan nathan. >> the bull. this thing may be so bad it's good. they report earnings next week. the implied move is about 10%. that's a pretty big move. they have a new ceo. the stock is down 50% from the all time highs. down 25% on the year. when you think about it on a valuation basis, like under armour trades at 78 times. expectations have come down massively. you have a setup with poor sentiment and poor technicals. i would be shocked if the new ceo lowers guidance on the second quarter with the company here. heading into the quarter here, i think you probably have the potential for a bounce on the slightest bit of good news. i wouldn't short it or press the thing. >> a ringing endorsement. the slightest bit of good news, we might get a bit of a bounce. take a look at the chart. you can see that that's the -- >> that's a person. >> that's a person. >> funny. >> doesn't go with the chart. >> it's resting on some very key suppo

. >> lululemon. january, last year. ouch. a trend.hat we call uncharting a trend. >> lululemon has really been kind of a nightmare of a stock. i won't make the yoga joke everyone makes. the only downward fopose i know. it's fallen because of the ceo, gone in the wake of the black pants, translucent see-through pants fiasco. the company's chairman voted against two board members this week. he's feuding with the company and then you have with this backdrop, lowered earnings outlook for the year. a cult stock. the bulls thought it would be the next nike. it's not. just plain old lemon. >> and internal problems. not good. check you out, closing bell on tuesday. you can see us all there. our boss, president jeff zucker, cnn international richard quest, alison kosik, laurie segall a lot of other editors and bosses up on the podium. the people who put cnn "money" online and on the air. we want to it thank the new york xx for helping us celebrate the rollout of the company. >>> and coming up, doesn't show the hottest housing markets and the a

. >>> lululemon's founder, chip wilson, turned on the company's board today. wilson announced he voted not to reelect a chairman and one other director. despite wilson's opposition, the retailer voted for both re-elections. lululemon down today, 2.5% at 44.30 it is. >>> coming up, ready to renovate, now there is a new way to view and plan your home improvement before you buy. >>> applications for home mortgages jumped more than 10% last week. the weekly mortgage bankers association index, which includes both refinancing and home purchase demand hit its highest level since january, even as mortgage rates went up a little. >>> and finally tonight, renovating your bathroom, hoping the end result is the dream room you wanted and not a costly nightmare. now one retailer is rolling out a new virtual technology it hopes will change the whole process. dia diana olick has more. >> reporter: we have been here before. deep in construction, hoping that everything we chose for our home renovation project looks the way we want it to when all the dust has settled. americans

take a look at lululemon. the founder is fighting to regain control of the company, that is sending the stock higher. explain, nicole. nicole: the founder is about the near-term, concerned management is concerned too much on the near-term. he has secured and turned it to goldman sachs trying to seek a change in the board of directors at lululemon. the company recently cut of their forecast, right now the stock is up about 3%, it has gone up and down over time, but ship wilson is trying to regain some cloud they are indeed. he is looking to goldman sachs to help him to do so. stuart: he has 28% of the company still, that is in a space to move from. that is why the stock is up again. and we have ed klein's new book, peers frequently on the show, his new book site one of hillary clinton's top legal advisors alleging president obama called on ms. clinton at 10:00 at night to get her to spin benghazi. wanted her to say the attacks happened because of the video. she hung up and talk to her husband, bill clinton. thi

you're flipping ad and buying lululemon shorts? >> turns out i'm buying new lululemon shorts panned by the wayed hoodie is awesome. channel my inner zuckerberg. melissa: that is lot of information. before you go, shame on you, you probably heard how rather unsavory folks are using likes of twitter and facebook to shame others over various issues. now, the rage is taken to the sky. there is new hashtag campaign, called, carry on shame. encourages travelers to post photos of passengers carrying far too much luggage on board. take a look at some of these first. there was this poor guy probably went a little crazy in duty at this-free and tried to squeeze everything into the overhead bin. this dear sold who slid the bag inside ways much to the ire of his fellow passengers! oh, dear. it fit. if they let you through the cabin door, obviously you were allowed to bring it on. what is these people's beef? >> i feel a little guilty when i bring a bag that is too big. luckily there is nice guy who will lift me up and shove it into the compart

we've actually had lululemon results breaking early.l take you through some of the numbers we're seeing right now. full-year, 2014 revenues 1.77 billion to 1.8 billion. giving a guidance right now. the full year the second quarter revenues saying 375 million to 380 million. so guidance there, too. right now for the first quarter, same-store sales rising 1%. we've got q1 revenues at 384.6 million versus the view of 381 million. so as far as the revenue line, looks slightly better. we've got the q1 eps, the estimate at 32 cents a share right now. i'm just looking to see. still waiting, actually, for the eps to come through. actually, first quarter right now saying eps of 13 cents. but we'll check that right now. so some of the numbers, looks like slightly on the weak side. actually, let's see. okay. so excludeing items, we've got it 34 cents, in fact. so slightly higher, it seems that actually estimated. that was a good revision there thanks to my team there. that wasn't seen. let's get some take on these numbers, joining me from washingt

. >> tomorrow morning i'll watch lululemon they have not convinced me yet that i need to spend $10 $100have first quarter earning we'll see what happens. -- charles: everyone wants to know a lot of people saying buy lululemon this week. matt. >> i am watching social media stocks, i am really watching them now, too much of it, we were looking at tech stocks getting crushed now social media stocks are coming back. they are great -- and markets. maybe leader of market. charles: facebook leading the way, time for my marching orders tomorrow, a tough period for everyone that has missed rally, you have to pay up now if you top build a portfolio, but you cannot be afraid of buying a stock at the all-time high, make sure that fundamentals have been improving with the pace of the shares, even more so than share price, i know a lot harder than it was 5 years ago, we're doing this not for the next week or the next year, but for next 20 or 30 years. >> a lot of people say buy low sell high that does not do well for most, buy high, sell higher. charles: outside of tech stocks, most stocks that are l

wilson remains on the board, owns a 27% stake in lou lou lemole lululem lululemon's stock do you 25%you. >> thank you very much. >>> and mitch lowe rejoining us now. the co-founder of netflix. mitch, want to ask you quick in light of what happened at lululemon, shareholders voted to keep the ceo of the company. too much power in one person? >> not at all. this is a way to keep everything focused in one direction with one individual. when you start to split the decision-making, i don't think it's good, at this point in time. >> that's what the argument that others would make, that it's great while the decisions are working out for shareholders generally, but not as if he hasn't had slipups in the past. structurally speaking, more of a check on people running the tech companies? >> there is always check. there's the board of directors. there's the consumers. there's enough checks, i think. >> for certain companies, though, doesn't seem there's much of a check. is anybody really checking mark zuckerberg? or steve jobs when he set up that board? certainly the way facebook is structured a

. >>> coming up, walmart and li lululemon, we've got a bull on each who says they will catch up. two debates are on tap. we want you to decide the winner in realtime. go to cnbc.com/vote right now and get ready to weigh in. >>> then, with the s&p at new highs again, goldman sachs is releasing a list of 15 stocks to own. you might be surprised by their picks. that and much more straight ahead on the "half." but what if you could see more of what you wanted to know? with fidelity's new active trader pro investing platform, the information that's important to you is all in one place, so finding more insight is easier. it's your idea powered by active trader pro. another way fidelity gives you a more powerful investing experience. call our specialists today to get up and running. i'm spending too much time hiring and not enough time in my kitchen. [ female announcer ] need to hire fast? go to ziprecruiter.com and post your job to over 30 of the web's leading job boards with a single click; then simply select the best candidates from one easy to review list. you put up one post and th

one of today's stock gainers was lululemon.s rallying today on speculation that the founder will push for the sale of the company. lululemon still struggling to recover from declining sales after recalling a line of pants for being see-thru. brokers who switched firms will be able to catch a size of their bonuses for themselves for a few months longer. the regulatory agency is reworking the proposed rule for financial advisors to tell clients about their starting bonus after getting a lot of complaints. those are your top stories. year, over a 11 million americans underwent cosmetic procedures making plastic surgery a $12 billion business, but what happens when plastic surgery goes wrong? we turn to our next guest, dr. paul nassif and dr. terry dubow. there to stars of "botched." thing keep her being here. let's start off by figuring out what exactly is "botched" in connection to the industry and the medical practice. >> prospect surgery is a huge industry and it is being done by all kinds of doctors. you don't have to be a boa

in the case of lululemon, those recalls were initiated in march 2013.e second quarter, they saw a 20% sales increase, as well as the third, but it was not until the fourth quarter that you saw a drop, but they were still growing. we look athink, if certain industries, it affects different consumers in different ways? if you look at lululemon -- i shop there. did i actually care about the recall? maybe not. do i care about the comment from the ceo? maybe but i like their pants. when you are talking about tylenol or a car, that is a different situation entirely. >> another example of the severity of risk. i spent some money on yoga pants that are not completely opaque, whereas in the case of tylenol, or even in the case of a death with gm or toyota, there is a more severe risk. it depends on how much of the risk is embedded on the products on the shelves. if they are currently embedded, you will see a significant change in behavior right away. if it is not so related to what i'm buying now, it will take more time to filter into changes and have an invitat

lululemon cutting its forecast even though first-quarter profits beat estimates. recap, sales numbers will be out in a half hour, a much has been made about the dependence on e-commerce. they still have a lot to do on improving the experience. julie hyman has more on this. part of the problem is a lot like what we do in the stores -- we are browsing online. >> except we do it at a higher rate. forrester research put out a report looking he -- looking at the name reason why people abandon their e-cart. they say shipping and handling is too high. they're just not ready to purchase for whatever reason. i spoke to a retail consulting group yesterday, and there are a lot of reasons -- your online, cries,ne rings, the baby whatever it may be, and you do not get back to it. also, 22% wanted to compare prices. saysee something, and you maybe i can get it cheaper somewhere else. piecee of that shipping we have seen an increase in the number of transactions that offer free shipping. amazon has been aggressive on that front and set the standard. other e-commerce sites have f

. >> lululemon is trying.hat is branching out to women. >> great story, guy from university of maryland started company, i wear unarm or it is fantastic, the stock is way overvalued, this is one stock, i am staying clear of, charles, this is where i'm staying away from. >> looking at competitor in state, they double lululemon growth, and kwrau, and quadrupl. >> the kids only wear under armor. >> they do. >> if i'm not bleaching uniforms i much washing under armor. >> every time i buy it, it on sale. >> do you see that because, i mentioned margins are getting better but company admits mostly from cost-cutting. >> they are discounts a lot of merchandise, it is coming from the expansion, we're talking about stores that open up in united states, and opening up a couple other outlets. charles: started selling big time in brazil as well. >> international. charles: time now, guys, for the shout out, every day i give kudos to someone somewhere, it could be a panel or to myself. then usually for them because they said

bull. >> well i lost last week on lululemon. i'm going to try to redeem myself here. amazon, the big knock is that their media growth is slowing. everybody says that's the growth engine and needs to go. we don't have earnings until mid july. we have good opportunity for a lot of stories to come out. potentially they're going to be releasing a streaming radio. a competitor to pandora coming out tomorrow. they are buying a lot of other companies. there's a lot of opportunity here and a lot of optimism that can happen over the next month. yes, i know the stock moved up, let's call it 15, 16, 20% but i still think there's room to move at least up to 360. >> call it whatever you want. the news flow is great. it's a really well run company. they have visionary management. as all of us are customers it's a great company to be a customer. doesn't mean it's a great stock. when you think about the q1, they had $20 billion almost in sales. they had $100 million in profits. that's pathetic. this company is doing amazing things for the future. doesn't mean it's a great company to

you think lululemon . they didn't opine on the financial aspects of lulu. have the stocks spent enough time in the wilderness? i think we need to do a huge drill dawn u down after this quarter. finally on friday, we got a number of indicators that will indicate chatter. in the first, i'm concerned about consumer confidence. we got to figure out how the consumer is feeling. i think may turned out to be a punk month. a lot of the retail stocks are still going strong. that's their anomaly. has confidence improved? let's find out. we better hope so. then we have the may producer index. if my mexican restaurant, which you may see on cnbc.com now is any judge, then i got to tell you something, this is going to be the first bad ppi number, plain bad we had in ages. for months, inflation has been checked. so we don't have to hear about how we are ignoring stagflation. i need you to be prepped right now to hear that harsh jeremiah after friday's producer price number. when we present it as one more reason why you should be circumspect and one reason why you have to

lululemon is up more than 5%. the trade ahead of earnings and we got your first move tomorrow when we come back. stay tuned. chocolate is very individual. white chocolate lovers don't like dark chocolate. milk chocolate lovers don't necessarily like dark or white. before we couldn't really allow the consumer to customize their preferred chocolate. we needed the scalable cloud solution allowing them to see all 800 products and select what they are looking for. now there is endless opportunity to indulge. you are gonna need a wingman. and with my cash back, you are money. forget him. my airline miles will take your game worldwide. what i'm really looking for is -- i got two words for you -- re-wards. ♪ there's got to be better cards than this. [ male announcer ] there's a better way with creditcards.com. compare hundreds of cards from all the major banks to find the one that's right for you. it's simple. search, compare, and apply at creditcards.com. first round's on me. ♪ [ indistinct shouting ] [ male announcer ]

adam: earnings from lululemon disappoint. >> lululemon i love.as down 16%. liz: here come the bells ringing on wall street. [closing bell ringing] in the last hour, after market session for oil, held to $106 a barrel. jumping up to 106.72. markets came off the lows of the session. s&p 500 was down at one point down 17. looks like it will end down 13 points. the dow was more than 130. now it is down 110. a little good news retracement back to the flat line. "after the bell" starts right now. liz: quite a bit of act shun in today's market, let's bring in along with adam shapiro we have global trend investment who says now is the time to get into emerging markets specifically. we have randy warren, warren financial services chief investment officer who says there is on

there, kelly, you know we love regis, absolutely, and the other stock that he knowns, by the which, lululemon which is having a nice job. in terms of today, we've got the commodities teen. dennis garvin sees oil going higher but it's not iraq that is driving the price action. it's another risk factor so he'll name it. >> over to you, melissa. >> live from the nasdaq market square in new york city i'm melissa lee. who says there's no volatility in this market? the vix may be low, but there are lots of big movers in today's session. tes larks general motors, f-mcmoran, 3-d systems breaking out to the upside. tesla on a tear for the last five trading days. up 15%. let's bring in ben cowan who joins us on the fast line. ben, what's driving this? >> thanks for having me. much big news coming out. more importantly earlier in the week tesla issued an e-mail to model "x" reservation holders reaffirming the timeline around when deliveries will start early next year and then it said we'll see actual production models on vehicles on the road sometime this fall so i think that gives investors more confid

. >> looking at a couple of different names this morning, in particular, lululemon in focus.y. twitter up four and a half percent after its coo departs. >> yeah. recalibration is what the market is expecting, especially with e marketers numbers out where it was saying international numbers are going to grow, u.s. is not. >> let's take a quick check on amazon. we were just talking about them launching a live service, trying to justify the $99 prime price tag. >> we haven't seen any reports out this morning. people are traveling. they're not racing to say this moves the needle, so you look at this stock, down two percent. >> on a day where if we have to talk about one area of focus, it's energy. now we're seeing that sector resume leadership for the year. in fact, energy ipos have performed better than tech ipos this year. >> that's not surprising given how much focus that's on asset specifically plays. we'll see how they eventually trade once the situation in iraq, we get a little more clarity. >> great point. we just saw rent the runway a few minutes ago. the entire disrupter

both lululemon and american apparel fending off controversial retail icons who are fighting to regain control. >>> the washing and talk comes to wall street. a hollywood power player set to take "flash boys" to the big screen. can high frequency traders handle the truth? >>> the world cup kick in the gut, they finally get me to watch and it ends in a tie? a tie? because even when they say it's not it is always about winning. melissa: sigh of relief from the housing market. "money" told you about the two-year recovery faltering in the housing market amid rising prices and low paying jobs. existing home expectations beat expectations seeing the highest monthly gain in three years. here is fox business's own charlie gasparino, jo ling kent and "wall street journal" spencer ante. what do you guys make of this? what do you think, charlie. >> economy is still pretty slow. i think we're bouncing off the bottom when you talk about housing making a come back. if you look at the numbers from, i'll tell you, we were first to talk about this, again, i think this is the biggest economic story out

>>> anyway, lululemon's founder is looking -- different than walt mossberg and morgan stern?> morgan stern does movie reviews for the "wall street journal." >> okay, this is morgan sin. >> yes. >> okay, just want to make sure. because i like the movie review guy. did he like your movie that you saw? >> i don't recall -- >> the one that you cried? >> i don't recall if he -- >> you were balling like a baby. >> which one was that? i think he did like it. you have to like that movie. it's impossible not to. >> you were balling like a -- >> i was. >> more or less than "beaches"? >> i have a thing for bette midler, as you know. >> i was at dinner with her. she's nice, very funny. >>> anyway, shaking up the yoga retailer, chip wilson -- >> you know why he's no longer there? he's the guy who said some -- had some comments about the sheerness and the body -- >> which didn't seem as bad -- >> around lululemon. >> right, which didn't seem as bad as the guy at abercrombie, who said we don't like things that aren't cool. >> except he made the fact that there are people who shouldn't be we

we have got an analyst who downgraded lululemon today.dn't rate at a cell rating for one reason. we'll discuss the possibility of who could buy it. >> over the you guys. thanks. fast money starts right now. live from new york city's time square. an ugly day on wall street but good news on intel, sending shares higher. get you those details coming up. but the return of the risk of market. increased violence in iraq. the ten year yield following below 2.5%. and stocks down. we have not seen this, dan,

leggings, and this is fueling growth of america sales. >> i'm definitely showing up at my lululemon'sughter] area has really grown for nike. 21% increase in revenue. $2.3 billion. that is one half billion off adidas. nike only got in on the act 20 years ago. they are managing to grab market share by sponsoring some of the best teams out there. neck,ave gotten neck and both have five qualifying teams in the next round of the world cup. nike had more to begin with. brazil, like nike has france, greece, netherlands, usa. adidas has argentina, germany. of an own goalt with luis suarez. for nine international matches. this is not great for adidas. >> look at this. i think he hurt his own mouth. about ofe a little bit a worry about bringing into your portfolio individual players. nike has not done all that well in terms of the world cup. you no longer have the likes -- who else does nike have? renaldo is out after portugal came out. they'll have big winners. adidas has been a bit of an own goal with the details. -- individuals. nike has 37 million facebook likes. that is about double what a

athletic wear, lululemon. >> a woman will wear another woman's yoga pants?olutely. >> interesting. i will stop right there. move to the investment side. zoeon kutcher and rachel are investors. it's not just wall street guys who find this fascinating. celebrities -- a real following as far as people who want to invest in it. >> when you look at the opportunity in these marketplaces, what's happening is the convenience of being able to shop and sell from your phone -- you see that in other industries. the scale of fashion makes it very attractive. two silicon valley and fashion trend since. new york, l.a.. we do these live parties. we had 300last night where thre people showed up. we have physical parties as well. >> you have experience in websites and apps. this is not your first rodeo. companyated another that was acquired by hearst back in 2007. that was a women's fashion shopping site as well. it >> what's the next step for this site? looking at an ipo? is there an exit plan? >> we are focusing on growth. we are still leading in the united states. our next

steel and lululemon.e are valid title stocks they are boring but the point is you hold on to them >> they're going nowhere fast. >> it is like teenagers with hormones. it blows through the roof. i am not sure why people need to be in these stocks. if you cannot sleep at night. why? charles: da hart to hart then the slower moving stocks. >> any day of the week. >> people want to be attached to the vendors it feels good. charles: blow the whistle reagan -- look at the pain in the investment of the permits that data was out they were both a little less than expected now tusis single-family homes coming on a and that's start number six and a 25,000 and over the last couple of days but for instance supply. those are at the eight year high. also is a lot different. there were vacancy levels in he just kept pushing and pushing. right now the fees are low. supply is increasing the we can get more people back into the construction industry but the interest is there. look at is a low -- zillow. people interested to

let's take lululemon leggings.e leggings are very big with a lot of teenagers, yet the stock has not done well at all. in the survey, it seems as though it was a declining brand. is that correct? >> yeah, and i think a bit of this gets into the notion of conformity versus anti-conformity. when a trend becomes over-popularized like yoga pants, it starts to lose a portion of the ravens or mind share. i didn't hear as many girls talking about yoga as a trend versus last year. it was the entirety of the trend. very much i think you may be seeing some indications as a trend in the teen page it's starting to get a bit long and we may be moving into something new and different. >> eleanor, you get the final word. you mentioned the fact that social media was very important to you and you use instagram. when you go out and spend, is technology the more important purchase for you, or is it clothes? >> clothes is the most important for me. >> all right. where does technology rate? how important is it? >> if i was going to ran

. >>> plus bickering at the top of lululemon spelling warning signs for the stock maybe?ing into a very crowded music streaming scene. will they disrupt the sector or barely make a ripple? lots of things coming up top of the hour, guys. make sure you join us for "street signs." kid: hey dad, who was that man? dad: he's our broker. he helps look after all our money. kid: do you pay him? dad: of course. kid: how much? dad: i don't know exactly. kid: what if you're not happy? does he have to pay you back? dad: nope. kid: why not? dad: it doesn't work that way. kid: why not? vo: are you asking enough questions about the way your wealth is managed? wealth management at charles schwab. ♪ [ girl ] my dad, he makes underwater fans that are powered by the moon. ♪ [ birds squawking ] my dad makes airplane engines that can talk. [ birds squawking ] ♪ my dad makes hospitals you can hold in your hand. ♪ my dad can print amazing things right from his computer. [ whirring ] [ train whistle blows ] my dad makes trains that are friends with trees. [ train whistle blows ] ♪ my dad works at

gap is starting to have competition for lululemon. watch out for lulu and the downward facing dog chart of death. >> did you suffer that downward dog problem? >> no, i was able to push out of it until an upward facing dog. >> anyway, i'm moving on. drop for riding your bike naked. >> yeah. >> you won't have to look to the sky to see a full moon this weekend in portland. that's because the annual world naked bike ride is racing to the oregon city on saturday. some residents right-hand head over heels about the idea. concerned citizens have voiced bottomless complaints. police recommend staying indoors and closing the blinds. >> is that a roasted nut street vendor? i can't see. >> that's unbelievable. >> that will crack you up. >> terrible. all right. is alan mulally to the rescue again? sears ceo eddie lampert reaching out to mullally for help with a turnaround plan. could the outgoing ford ceo end up in the c suite of the flailing retailer. we hear what he had to say about it. and enjoy another one of my top song picks. "american boy"

watching shares of lululemon. makers of yoga wear.omparable sayles and guidance falling short of consensus. that stock under pressure he as a result. 7% in the premarket. also, a nearly $2 billion real estate deal is coming up this morning. shopping center owner dvr teaming up with an affiliate of blackstone group for 76 shopping centers from american realty. they are buying red lobster from darden group. this will help fund that deal. >>> phil mickelson back in the news this morning. "new york times" reports he was not involved in insider trading in the shares of clorox when carl icahn was attempting an unsolicited takeover. the fed was examining part of an examination into well-timed trades between mickelson and billy walters. the "times" reports they did not find evidence that mickelson traded clorox shares. the "times" is reporting that mickelson is not on the clean when it comes to dean foods. authorities are continued to investigate well-timed trades. we will hear more about that potentially. >> twitter is said to be considering

. >> number three is lululemon.focused on further strengthening the company's products engine and innovating to drive global expansion. this is after you "wall street journal" reported that they hired goldman sachs to explore private equity sale. >> number two, coach. the handbag maker downgraded to underperform or. er. they cut its price. ended last week as the lowest since july, 2010. >> watch number one, g.e. deal.truck a $17 billion to buy asltom. there goes the bell on this monday morning which means we are heading straight to the call. i want to bring in michael purvis, the chief global strategist at wheaton. an inflation jolt that will upset this equity rally. he's focused on transports. so i guess the question is who is going to win here? >> generally what we have seen over the last couple months is still in play. certainly through the end of the quarter. >> what is still in play? >> transports leading the dow. we are having a slow-motion melt up, a performance chase. july should get some more volatility. th

speaking of founders, lululemon founder turning up the pressure of the company's management. he wants the maker to look beyond short-term results. the wall street journal says he may shake up the board and sell his stake reuven try to take the company private. shares recently fell to a three-year low. does notall that involve general motors. honda and nissan recalling more than julian vehicles because of faulty airbags. most are from honda including the fit combat -- compact. >> i've never had a car recall. and about 25 years i've owned four cars. >> what do you drive? >> rubber. >> once in 1968, they were going to recall the national ambassador, but i got lucky. we just took the chainsaw. thend then he switched to pacer. >> no, i stayed with the nash. we may take it out fourth of july weekend. is clear the ge last hurdle, sealing a deal. we will give you the details coming up after the break. this is "bloomberg surveillance." ♪ >> good morning, "bloomberg surveillance." coming up this morning, the governor of the commonwealth of puerto rico today at 10:00 a.m. with stephanie

. >>> athletic clothing giant lululemon is at the center of a fight this morning.onths the stock price jumped 40% since recalling millions of its yoga pants. customering claims they were too sheer afrmt founder chip wilson claim thad the rubbing of thighs may be the reason for pilling inside the theses. cbs news contributor and analyst is here this morning. mellody hobson. good morning. is he going to be able to pull it off? >> that's the thing. he thinks it's short term. there are two ways, a proxy fight that would be more beholden to him as a private shareholder, aligned with a private equity term. it's hostile and hostiles are back. and third, he could sell his snars he believes he won't get any traction. boards are less likely to fight with foirpds these days. >> aren't many of his problems self-inflicted? >> there's no question about it. walking faux pas. if you listened to some of the things he said, they're tough. last year, the comment about the thighs, that took a billion of market cap off of the company, a billion dollar. >> that one comment. >> you don't

lululemon? i don't think so.nt biden al-maliki, attacking an oil refinery and -- an attack on an oil refinery and civil war beckons. ofte an image yesterday congress and congressional leadership with the president in the oval office. is there any consensus in washington on an action plan on iraq? >> there really isn't, tom. what you know from the white house now, they have been fairly public with the fact that they are not ready to take specific actions. the big problem right now i'm if there is one thing everybody can agree on, it is that prime minister maliki's leadership over the last five years has brought them to this point. it is what the white house and congressional leaders have been pushing for and that is the exact opposite of what he has done. as a shiite, he has pushed away unnis and he is in a position to call for national unity and there is no unity to be had. >> 10 the administration get to the sunday talk shows? it is thursday, and the basic idea of getting to sunday morning, or do they need to do