can michael kors stay ahead of the pack?ing up next on "the pulse". >> welcome back to "the pulse." this is "the pulse" live from bloomberg's european headquarters in london. let's have a look at the euro. headed for its biggest monthly decline in four months. there is a lovely chart from the start of this year which shows what has happened over the month. the big talk of the town was the e.c.b. will add to monetary easing next week. and a gauge of the u.s. dollar poised for its first monthly advance since january. we have a report tomorrow on initial jobless count. everyone is looking at it ahead of the important e.c.b. meeting next week. >> you know what else everyone is looking at? >> handbags. >> michael kors reports later today in the u.s. is the brand still in style, our next guest seems to think so. thank you for joining us this morning. michael kors clearly on a tear here . the stock went public in twounl. it is up four or -- 2011. up four or five-fold. posted a 60% gain in sales and profits. what is michael kors doi

>>> michael kors reporting strong earnings today.pany said sales growth was better than expected. profits surging 60%. the stock is having a volatile day as you can see on the chart there to tloeg news. what's the real story? we have pete taking the bull case. joining us from california today to make the bear case which he's written about is herb greenberg. 1:30 is is on the clock. herb, you've got to wait a second. pete has buck 30s on the clock. pete's going to make his case first. >> seven of the last eight reports, we've seen the earnings beat the estimates, revenues beat the estimates and today, they beat the estimates once again. actually crushed the estimates and it's not just north america. you look at how they're expanding globally and the fact they've added 100 stores. this is a global brand that just continues to get better, continues to be stronger. when you look at these numbers, herb, when they put out for their full year what they're looking for was basically above the street, so they're powering through it and this is

we have michael kors.oll brothers and palo alto networks, chico's and dsw all coming up later. some people are looking for a bigger correction. one person, on the other hand, believes we're in the best position we've been all year to see a long, strong equity run. we are joined by brian from rosenblatt securities. tell us why. >> we've had basically a correction for the last five months. it's been more of a correction in time rather than price. and typically, in the credit boom, once we have a correction, we good on that long, strong run. that's fueled by three things. it's fueled by short covering. it's fueled by increased buybacks caused by borrowing in the corporate bond market and now we have a third leg of the stool. we have increased mergers and acquisitions activity, helping to boost stock prices. >> every time we've seen the s&p make a new high, it's been met by selling pressure this year. why is this different? why now is it different? >> two weeks ago we rose up to what was clearly defined resist

is down 60% thomas 6.9% of that hasn't shorted and yet macy's is up 15% and i bring back michael korsr-over-year and those purses are not cheap, marshall. someone is doing something right. >> it's really all about look at the retailers that are doing well. they are the ones that are innovative, driving new and exciting product and giving the consumer a reason to buy. also, look at them by offering who's offering up the right price value equation. michael kors coming up with a big part of their growth at the affordable luxury price, not the ultrahigh end , so it's about taking something the consumer is looking for and providing them with a. it's about recognizing how important new and exciting is and if you are going to rely on selling the same old basic merchandise, well that's not going to work. it's going to maintain business and will not grow. liz: give us your favorite names now. >> kroger, tiffany, nordstrom's looking at luxury and looking at really well lead retailers. liz: marshall, your favorite? >> i'm looking at changing the way in which we look at success in retail. we have

michael kors beating the street with its fiscal q4 results.lobal same-store sales up more than, man seems hard to imagine, 26%. >> i didn't like the gross margins. >> really? >> 26%. same-store sales. >> would be a little higher. >> that's asking for a lot. >> just telling you. >> they were giving up margin to make sales. 2 26%. come on. >> why the stock went from 98 to 95 and go over the conference call and they're saying they thought analysts were expecting 60%, did not meet the expectations. this is my friend herb greenberg all over this thing. look, yes, it's kate spade and this company are the two best in show in the accessory department williams sonoma best in show in all of retail. >> about a company that sports a roughly $20 billion market value. it's more than a double over the last year. well more. >> it's had the momentum and no one has those comp stores. then again, nobody -- no one can raise price here and, you know, i was hoping that kors would be able to tell a better story, but i'm looking for too much. >> if i'm an investor an

i like on the mars rovers calling around the michael kors on your hands and knees and then try to decide what the geology of the earth is like. so if you like humans still have an important role in exploration and we also have an important role in terms of the discovery of what our capabilities are and what our place in the world is and what our place in the universe is a. it's part i would hate to see lost. of course the cover of the book shows mars. that's the ultimate goal at least for the foreseeable future. there is a planet waiting to be explored. we would learn that the geology and science from the explorati exploration. we also learned a lot about ourselves to establish the presence of another planet. but i think it is an important one. >> what is the mail-in mars program? >> it was initiated by president bush in 2004 to use it as a stepping stone to get to mars to build the infrastructure to utilize the resources off the planet, extraterrestrial resources if you will in order to not have to carry so much when we explore. so the program was designed to build on the current knowle

it's gatsby index time which means buy buy, buy michael kors. i know jokers wanted to see higher interest rate s rates. lower rates mean more business. i bet toll, the gatsby of the home builders, the intramonth progression is terrific. please don't trade off of the headline. the stock market will be thrilled to hear that the spring selling season will be deferred and not called off entirely because of the weather. one of the oddities is individual stocks in a sector can report periodically. we judged many companies harshly. other companies did better. it's so easy to do that. you look at the day before that day and make a judgment. remember the two characteristics that i have used to describe it. the laster comes into play. last time costco reported what were believed to be tepid results. costco was among the best, maybe among the top five. i hope the market remembers to report how poorly they did. i think costco-will look good by comparis comparison. >> i think it will once again deliver spectacular numbers. the stock can be tougher than ridin

. >> michael kors, we'll tell you why one trader is making a bearish bet. [ indistinct shouting ] ♪ [ng ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. >>> michael kors reporting its earnings and some traders are betting on a huge move in the stock. mike, what are you looking for? >> so it's really interesting. this one traded ultimately by the end of the day more than nine times its average daily options volume. and the ratio of puts to calls was more skewed than it usually is. the two most active were the weekly 90 strike puts. the buy ares of those 90 strike puts are paying a buck and a half. now, this stock actually has never really disappointed in terms of price on earnings since publicly traded. it does move pretty violently. usually moving about 10%. we can expect maybe a good size move tomorrow. the most active options are betting to the down-side. >> what are you doing with kors, karen? >> h

michael kors, coach is down bill, but michael kors is up 15%. autozone and o'reilly auto parts, these are the places you go to buy the air filters, motor oil, they're up between 11% and 14% just so far this year. when it comes to retail and consumer discretionary, sue, the idea is this is very much a -- really the definition of a stock picker's market. back over to you. >> excellent, dom. thank you so much. >>> retail's remodeling invest for success is on aural agenda. clearly a lot is happening. courtney reagan has four former ceos. and mark cohen of sears canada. it's an all-start panel. >> that's right. it's really special. says he theys that retail is clear, but the consumer is not. do you believe that? >>> you look at the numbers, and you see the health there you had a -- you had a discretionary income. what's your overview. >> you've seen it already. >> what do you think about weather? >> we've been hearing it a lot about an excuse. >> i think the weather was really that bad since the period of january. >>> i think we'll see, but i agree w

earnings season continues with results from michael kors and costco.onday, the markets will be closed. tuesday, orders for april and we'll see how home prices are faring from the kay schiller index. after discovering a $4 billion miscalculation last month. thursday, the second estimate for first quarter gross domestic product will be released. >>> marijuana is lighting up colorado's economy, bringing in new business and jobs, but for those in the industry, going legit hasn't been as easy as you might think. with issues like banking and security, is the pot rush going up in smoke? jane wells is hear to explain. >> becky, it is an industry trying to go legit under the cloud of federal illegality and a lot of the rules are still being made up. brook gering runs four marijuana stores in denver. >> and this tag, another expense -- >> and she has to follow a bunch of new rules. like keeping her pot and cash separate from her medical supplies. >> cash management is an entire individual sector. >> recreational marijuana is going mainstream in colorado and rema

check out what's happening with michael kors shares.a hit after the company warned wednesday that its margins might suffer from the cost of opening stores in europe. that stock is down toward session lows, off by about 5 %.s it may be nothing more than a valuation call. the stock has risen nearly 120% in just the past two years. so a big deal on the upside, but a down day today, sue. back over to you. >> thank you very much, dom. >>> all right. inside that plane is australia's national soccer team. they arrived in brazil last night. the first foreign team to arrive for the matches which start in two weeks. there are a lot of questions about this tournament. there has been a rash of severe violence in brazil. reports say drug gang activity is on the rise. there was a major shootout just last night. a taxi driver was killed in the cross fire. brazilians have been protesting the matches, saying that the government is overspending while ignoring social issues like transportation, health and education. the roof at an international airport in

earning season continues with results from michael kors and toll brothers and costco.n monday the markets will be closed and tuesday we get durable goods orders for april and we'll see how home prices are faring from the s&p shill erin dex. bank of america will resubmit its plan after discovering a $4 billion miscalculation. on thursday the second estimate for first quarter gross domestic product will be released. marijuana is lighting up colorado's economy bringing in new business and jobs. but for those in the industry going legit hasn't been as easy as you think, with banking and security is the pot rush already going up in smoke? jane wells is here to explain why pot is still a puzzle for entrepreneurs and regulators. jane? >> becky, it is an industry trying to go legit under the cloud of federal illegality and a lot of rules are being made up as they go along. >> here we have two recreational safes -- >> reporter: brook runs four marijuana stores in denver. >> this tag, another expense to doing business in the state of colorado. >> reporter: she has to follow a bu

michael kors closed at $97 a share. >>> it was a different story for dsw, shares of that stock plunged after the company posted earnings of a missed estimate and cut an earnings forecast. it blamed bad weather and the promotional environment for the miss. the stock plunged to $23.62. >>> and today investors got a chance to react to a new rating on tesla stock, standard poors labelled it a vulnerable investment and gave it an unsolicited grade, a d-minus, s&p cited the automaker's narrow price focus. shares of tesla closed at $210.24. >>> shareholders of chevron rejected the roles. shareholders voted against a non-binding say on executive compensation and a proposal that would have required chevron to disclose more fracking information. shares of the company fell slightly to $122.52. coke industries taking petra logistics, this will give coke the control of a plant that can convert cheap u.s. shale into a key ingredient in plastics. shares surged up to $14.30. >>> and shares of vivas, the company's biggest share of aspen investment fund is planning to buy the company for $640 million, a

i have seen you since michael kors' new year's eve masquerade. - uh, i don't know what you're talking about. - right. let's dive in. - banks.

michael kors reports results later on this morning.re huge following last quarter's result. 80% on theirped last quarter earnings in february. expectations are high. we will ask him why kate spade and tory burch are snapping at his heels and what coach seems to be doing so wrong. coaches down 26% so far your today. >> thank you very much. i know that you have all those brands their and less quarterly numbers. coming up, welcome to russell street. it is the single most expensive strip of commercial in the world. ♪ >> welcome back to "on the move ." hong kong is home to the most expensive street in the world when it comes to commercial real estate value. betty liu took a tour of russell streets to find what a few million dollars would buy in real estate. it is not much. hong kong is a maze of stores. there are shops piled on top of shops. to help me sort through this is this guy, sam. great to see you greater >> welcome to hong kong. >> would you like to shop? >> please. hong kong is where you come to shop if money is no object. cartier,

michael kors, does it really get grouped with louis vuitton? >> no, it's not quite the same. mid tier luxury. it is definitely not high-end. but it is in the middle. to use the phrase very loosely. >> affordable luxury. >> streetsmart is up next. i will see you there. ♪ >> we have the markets trying to hide -- climb higher. many investors optimistic the economy will bounce back. i'm trish regan. this is "street smart." welcome to the most important hour of the day. tryingmania continues, to trump the bid for hill sharp brand. apple makes its biggest acquisition

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

that's the lesson of michael kors the handbag and accessories company and workday.or all things human resources. this morning when kors reported the stock flew higher because the sales were so strong. but a company that sells with 30 times earning with a spectacular growth rate. 26% gain in same sore sales will be put under a microscope when it reports and this time they seized on an up tick in inventory. one flagged ahead of time in exhent reality report for the street.com. i want want to believe it at first because retail is so turf that any merchandiser putting up these numbers should be rewarded. however, inventory up stick reverses in the open. it did manage to rebound but nowhere near as strong as it was earlier in the day. workday was exactly similar. the fantastic fast growing software company won huge accounts this quarter. netflix. the growth here was an awesome 74% but the company still reported break even operating cash flow instead of a number that would warm the hearts of those that wanted big gains in earnings down the road as well as rapid revenue gr

namely the profits michael kors is giving you. i'm going to take the over on fossils earnings. there's a lot of doubters about take two interactive when we push it real hard because we like what the ceo said about how grand theft auto has been doing. it just keeps getting strong er. some people are saying could it be a second ea. that's a tall order. is ea truly shocked people. what might have been the biggest earnings beat of 2014 but i do think take 2 can work it's way higher. i'll be interested to hear about howell they're coping in the new world. we have one of the most controversial names out there. it's funny. deere the manufacture. it's been a rocket as of late even as his competitor has been stalled. it's rallied trading up to 94 dollars. when it's executives start talking on a conference call they'll be very conservative and the stock is going to get hit. sell some into the early morning before the executives talk the stock down. that's been the pattern for years now. i can't wait to get results from soda streams wednesday because i'm sick and tired of hearing that pep

which is just on fire and also have brands like michael kors what a company that company is going to have. department stores love this company because this perfumes and cosmetics are a huge profit driver for the business. they make a fortune on this stuff. it's not a mass market operator. they serve higher rate customers, especially in the market where the company caters to the rising middle class. it's an aspirational brand. make no mistake, this is very much an international growth story. they get less than 40% of the sales from the u.s. at the moment, emerging markets represent 13% of their sales. china could be the second largest market and unlike so many other companies that have seen a slow down in china, they're doing just fine in the people's republic. they know half the population would rise up in anger if they tried to limit access to fancy make up. plus, estee lauder boosts margin and finding working class efficiencies and of course making better use of its balance sheet so it's no wonder that when the company reported on may 2nd, they earned 64 cents a share. i couldn't b

earnings reports from tiffany, nordstrom, michael kors, they show the 1%, they are spending. meantime, retailers that cater to the 99%, like staples, dick's sporting goods, jcpenney, they're all having a harder time. call it income inequality in the retail world. >>> mcdonald's on lockdown today. the company shut down its headquarters ahead of its shareholder meeting this morning. protests are expected tied to everything from the unhealthy food to low wages. 110 mcdonald's protesters were arrested yesterday. workers were calling for higher wages. the average wage for a fast-food worker is $9.09. that's less than $2 above the minimum wage and below what many are saying should be the minimum wage in america. even though many workers have at least some college education, fast-food ceos make about 1,000 times that. >>> silicon valley has a new king. san jose has ousted san francisco as the tenth most populous city in america. the census bureau out with new data this morning showing that u.s. cities are still growing faster than the suburbs. that's an interesting trend. most of th

. >> michael kors? >> michael cores, people like j.crew.ingsaying to do a little bit more if you give me something new and different. if there is something new. >> we talk about "the devil wears prada," you are dressed gorgeously. i went through the metropolitan museum of art fashion exhibit. i refuse to believe america has given up on fashion. are we going to become a nation of chinos and blue jeans? is that our destiny? >> we were always that. there are places that are not like that. you are right, we still aspire. aspire. and the damper is we feel we must pay for it. we want new and innovative. if not, we will cheat. me, youistinction to where wonderful things on the show. jcpenney america and -- maybe people are not shopping there because they do not want that garbage. >> that is a different america. we are talking about a bifurcated america. jcpenney wants to grow out of that because it is a disappearing group. michael darda, when was the last time you went shopping and felt you could spend a lot giving what you are seeing in the econo

are surging, crushing competition, such as coach though they still have intense competition from michael korsever they have done well in the latest quarter. they have really shed the other names and focused on their core brand of kate spade brand. they sold off remember, recently lucky brand, among others, talked about the whole brand and sales continue to be very strong, and despite some companies talking about tough winter weather and seeing less traffic, not kate spade. they don't seem to be bothered by winter weather and storms, any of the like. we saw sales and brand rising 54% from those net sales. really outpacing all the survey estimates and of course a winner year-to-date whereas coach is a laggard. melissa: nicole, thanks so. so it is the biggest hedge fund conference kicking off in las vegas naturally. our very own charlie gasparino is there. he joins us on the phone with the inside scoop what is the gossip? who have you seen, charlie? uh-oh. he is so filled with gossip that he can not even bring himself to talk about it. we'll get back to him in a second. he had to chase after the

conference in california with every stock-moving headline, plus of course how to trade them and michael korstill a bear. and twitter stock having a rough year, but stock gaining on an upgrade that and more is straight ahead. now nor, back out to california and john ford. >> hey, scott, thanks. still digesting some headlines out of mary meeker's state of the internet report. she of course from kleiner perkins, a highly anticipated report, because it dives deep into the trends that are driving the internet. some of them are that the fastest growth is in areas like india, where it's hardest to monetize. video continues to drive growth. mobile app revenue, still trumps mobile ad revenue at 68% of mobile monetization. and chew on this for a bit -- google average revenue peruser, six times that of facebook. facebook average revenue peruser, two times that of twitter. we see potential of twitter monetizing the users. when you combine the number of users, the growth of users with the ability to monetize, you start to get a picture of this mobile economy that is growing, but growing in areas that are

you do not find michael kors ever in those types of places. >> you know who wants to buy in the store at list? your wife, my wife. >> that's not a sexist comment, that's not a joke. they want the prestige. god bless them. that's what will drive the economy. >> i'm being told that ralph lauren is, in fact, from the bronx, not brooklyn, which actually makes the lauren even stillier. >> all right. tell us who you think won that debate. tweet us @cnbcfastmoney, uus use #bull #bear. bronx versus brooklyn, wherever. >>> dominic chu has a "market flash." >> speaking of tweeting, about your thoughts on bull versus bear, check out the twitter shares this morning. moving higher after bank of america, merrill lynch upgrades to a neutral from underperform rating based on valuation. it's fallen too stock. it's currently trading, up about 2%. remember, twitter shares hadn't lost nearly a quarter of their value in just the course of the past month. so again, some of the upgrades may be coming. morgan stanley had one, twitter, bank of america. you never know, scott. maybe this is the turn or maybe no

earnings reports from tiffany, nordstrom, michael kors, they show the 1% spending is spending strong.rs who cater to the 99% think staples, dick's sporting goods, jcpenney, all having a harder time. >>> mcdonald's on lockdown today. the company shut down its headquarters ahead of its shareholder meeting this morning. protests are expected tied to everything from unhealthy food to low wages. 110 mcdonald's protesters were arrested yesterday. workers were calling for higher wages. in terms of wages, the average salary for a fast-food worker is $9.09 an hour. that's above the current minimum wage of $7.25 but well below what the president is asking for, $10.10. and worker themselves are calling for a $15 wage. that shareholder meeting kicks off today around 9:00 a.m. central. >>> silicon valley has a new king. san jose is the tenth most populous city in america, and it's about to crack the million-dollar resident milestone. the census bureau is out with new data showing u.s. cities are still growing faster than suburbs, mostly in the south and west. texas getting bigger, by the way. 7 of

as a result, people like michael kors, it takes spade, much more affordable price points. with younger people. they're capitalizing on these price increases. >> thank you for joining us. netflix plans to expand deeper into europe fisher. hans nichols has more on reading a stink -- read hasting's ambitious plan. >> six new countries on the continent. germany, luxembourg, switzerland, austria. i no longer have to try to hide my location so i can download netflix. subscription not available in your country, standby. they may be changing that. anticipates 70% of revenue coming from outside the united states. when you look at their current subscription model met those are remarkable numbers. they're about 35 or 36. most of the subscribers want to go further. >> to buy very much. -- thank you very much. the global razor blades market is dominant i names like gillette. one startup is trying to dethrone these companies and the strategy involves buying a former east berlin factory. david tweed has the story. >> in a small town in the former east germany, a new york-based startup is

shares of michael kors are rising today. fourth-quarter profit and revenue beat estimates.s were up 26%. >> we were speaking moments ago about cyber espionage. become a supersized stumbling block, the relationship between the united states and china. the big question -- the value of that relationship and the stakes for american technology companies if china decides to freeze them out. how much is the u.s.-china relationship worth? today, china stands as the greatest global rival to the united states, but their economies are inextricably linked. american government has accused chinese military personnel of corporate espionage, the latest escalation in a rivalry between the world's two largest economies. it will be difficult to sever ties with either financial frienemy. china sold $100 billion worth of goods. america's largest supplier by ofket value, apple, had 1/5 its total revenues in china. amazon --e, other big losers could be in the aerospace, aviation, and auto industries. thatcorporations may worry export and earnings will take a hit if the relationship between these

. >> kate spade, as the company refocuses on its core brand and takes aim at michael kors and coach.ceo of kate spade joins us here on set to talk about the transformation of the company, a cnbc exclusive. plus dan nathan spotted some bullish activity in another retail name. he'll break the trade down after the break. more "fast" right after the break. for $175 dollars a month? so our business can be on at&t's network yup. all five of you for $175. our clients need a lot of attention. there's unlimited talk and text. we're working deals all day. you get 10 gigabytes of data to share. what about expansion potential? add a line anytime for 15 bucks a month. low dues... great terms... let's close. new at&t mobile share value plans. our best value plans ever for business. and i get a lot in return with ink plus from chase i make a lot of purchases for my business. like 60,000 bonus points when i spent $5,000 in the first 3 months after i opened my account. and i earn 5 times the rewards on internet, phone services and at office supply stores. with ink plus i can choose how to redeem my p

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

we are going to get some earnings today -- michael kors, cracker barrel,dsw. deliver theama will commencement address at west point 11:00 today. we may get some indications about foreign policy. he was speaking about the military pullout of afghanistan. >>ian bremer will join us as well. let's do a data check. it just goes higher. the 10 year yield is 2.49, a euro, hydrocarbons are elevated as well and the vxx is the complacency, gold has gone south. we spent some time looking at gold yesterday. critical support is $1219 per ounce. is a big theme for us today -- this is the vxx rolling over. we are through one standard deviation and in a zone of complacency. >> this is the lowest we have seen in a long time. that's why the banks are having trouble trading. >> we will talk about this today, the complacency out there in the markets. we have looked at the front pages -- adam johnson? >> we will start once again in europe where ge's jeff imelt met with the french president france franÇois hopllande. alstom makes tgv. just talking about queens this morning? area of

squeeze michael kors, i do not want to bet against kors here. what's clear april/may must have been good or else he wouldn't have maintained his guidance. the buyback is for real, not one of the -- it's not a technology stock buyback where they're offering as many shares as they're trying to buy in. the company bought back 15% of shares since 2012. i like the stock very much. >> the worry the retailers we're going to hear are going to see the same comp action without the same margin control. >> you got kohl's. >> my daughter likes kohl's. you bought her a gift card for father's day? is that what you said yesterday? >> why not. i like the sonoma pant line, slacks. >> slacks. >> trousers. >> not trousers. >> slacks. >> yes. i think but -- one of the things that's happened is dav david mentioned a company that is the gift that keeps on giving to the rest of retail that we'll get to, sears. they continue to lose share. they have clothes. wherever they have clothes they're not able to sell them that way. william zen has not been that good. >> if you

last year, everybody had a coach bag, and this year, everybody is buying michael kors.to buy into a stock. >> i think it's trying to buy low and certainly get your profit that you sell high but it's hard to predict? >> right. there's always these people that want to time the bottom, they want to get it at the lowest price possible. that's almost impossible. i really believe when you buy a stock, you should buy it and hold it for a certain amount of time. picking that bottom is really hard. just watch the stock. you can buy it in increments to average outercosts. but don't try to pick the bottom. >> i've heard some people to say a good way to get in is to by one share of a company you really like. let's say it's apple, it's become expensive at $600 a share. do you like that strategy, just get in the game? >> i like the idea of people getting started. the only thing i don't like about buying one share, you don't have much flexibility. if you buy a cheaper stock where you can buy, say, 20 shares of it, if it goes up, if you keep ten, sell ten. then you can buy another. you

and we're going to find whether it's a michael kors bag or a brand new mercedes, somehow that will beorrow responsibly is the message from dolly lenz. thanks for joining us. we'll have to see what's happening. herb greenberg. here we are, bill. 40 minutes. >> close enough. >> and if you look at the major indices the dow is pretty much flat, down 11 points. s&p, still in positive? >> a little bit. >> just barely in positive territory so the calm end to an up month. >> it has been an up month. all the major averages have been higher this month. up next, apple kicks off its closely watched developers conference next week. we'll be watching that carefully. is the tech giant's rally over the past month being driven more by the coming 7 for 1 stock split or the anticipation of hot new products to be introduced next week? a couple of apple pros will talk with us about that coming up next. >> and later, is the los angeles clippers really worth $2 billion? does it even matter with billionaires with money to burn are bidding for the same team? that debate and much more later on on "closing bell

then there's tgx companies, ross stores, l brands and michael kors rounding out the top five.forming sector in the s&p today helped by some of those names. back to you guys. >> thanks so much. we turn to phil lebeau, who has a very special guest for us this morning. >> i'm joined by sergio marchionne. we are here at the brookings institute. we will be talking about the five-year anniversary of the auto bailout. you will be talking in just a few minutes. looking back five years ago, when you first had an opportunity to buy chrysler, did you think things would work out the way they have over the last five years? >> not at all. i thought we would be all right but not -- i didn't think we would be this far. >> did you think that the rebound in auto sales wouldn't happen, or did you think the effort to turn around chrysler would not happen as quickly as it did? >> actually both. i was a lot less optimistic about volumes in the u.s. we had a lot of work to do, the ability to execute on the timeline was not really certain. i'm incredibly proud of what they have done. they have done a

tampoco pasa de moda son los perfumes para mamÁ y en esta ocasiÓn, tenemos estos tres perfumes de michael korsrse en el mar muerto. lo mÁs increÍble es que se le llama el mar muerto porque tiene una cantidad de sal increÍble. no hay vida. dicen que una flota delicioso y del otro lado, impresionante, jordania. y aquÍ, estamos del lado de israel. a ver quÉ tal me va. >> por supuesto que no viven peces ni plantas y es por eso que lo llaman el mar muerto, y porque tiene el mayor porcentaje de sal y de minerales lo hace el mar mÁs pesado y aunque no puedes nadar mucho que digamos, literalmente es imposible hundirse y te la pasas flotando y hasta leyendo el periÓdico. >> ah, bueno, la primera experiencia fue maravillosa. ahora viene la parte mÁs interesante que es la de ponerme el barro que segÚn dicen, es curativo, quita las arrugas y es una sensaciÓn en el mar muerto. vamos a ver quÉ tal me va. >> muchos visitantes se ponen la sal o cubren su cuerpo con el barro. es por eso que me di a la tarea de probarlo. al principio, se siente medio gacho porque hay que escarbarlo de la profundidad y la textur

michael kors continues to be a standout.e trying to future-proof themselves but getting into the car business? >> yes, a driverless car. no steering wheel, no pedals. they've been working on this technology for a while but they showed at the code conference out in california their own version, their own design model. two seats. no drivers. drivers are there but they don't drive. they have a panic button for emergency. the idea is the technology and machine would have better sensors around to keep cars safe and prevent accident. >> machines are taking over. we've seen that movie, though, sarah. we know what happens. we know how this all ends. >> it doesn't end well, doesn't it? >> we prevail. >> sara eisen, thank you. >> up next, who says you need thumbs to play jenga. >> what's jenga? >> that's it game right here. you didn't play jenga in college? >> i wasn't allowed to play games. mom! awesome! dad!! i missed you. ♪ oh... daddy. chevrolet and its dealers proudly support military appreciation month. with the industry's best

want to throw out an audible, omaha, talk about a different gap, the gap between ralph lauren and michael korskors up 13% year to date, ralph lauren down 26% spread in the price performance over just 5 1/2 months. >> kors has big china business. coach has kind of fallen apart here. kors and fossil very strong. fossil very big in the wearables. people forget that. i think that kors, our friend herb greenberg had questions about their asian business. kors has -- the people have -- lone pine, steve mandell, someone who taught me about retail in the '80s has a big position. the disparity is remarkable. >> it is here. in general is this a case of ralph lauren, do we care about margins when spending the money and compressing your margins to grow your business? bad uses of capital and good uses of capital. >> yes. i think what's happened is we simply -- we start worrying, what's the deal, inventory problems, why do they guide so big down when we know they've got a good european business. not seen bad numbers from vf corp. and no guide down like that. very difficult to figure out the valuation here. >

. >> how do you feel in your michael kors creation?. >> although a hunkie other half didn't hurt either. for "today," alicia quarrels, e news. >> and we've got "vogue's" chloe mal here with more on the party of the year. little inside info. good morning. >> good morning, savannah. >> late night, early morning. you're here. >> we're here. >> let's get to it. who do you think was the best dressed? and there was a lot of competition. >> there was a lot of competition. the theme of this year's gala was charles james, so people really went all out with these big ball gowns. very glamorous, very elaborate. i think my favorite was sarah jessica parker. oscar de la renta made her this custom gorgeous gown that was supposed to look like a dress form in the back and she had these gardenias in her hair. rihanna did not go to the theme, but she looked fabulous as always in stella mccartney. we loved rihanna. she came with cara delvine. anne hathaway in calvin klein. really chic, really sleek. the little midriff crop was a trend for the evening. >>

kors number five, michael whose total revenue was up 54%. watches at their locations in u.s.umber four, valeant raising its offer for allergan, with the original author at $45.7 billion. systems.ber three, cd pd -- theincrease the printer maker shares. brothers,er two, toll saying that fiscal profit doubled as they sold more homes at higher prices. the average selling price rose 22% in the quarter, and deliveries were up 36%. retail, and dsw is your number one stock. shares plunged 23% after this, we kevin/its earnings outlook for the year, posting first-quarter results before -- lower than all the -- outlooks, retail environment weight on sales during the first period. it has been a tough quarter. i want to bring in michael mullaney. call, don't paul -- don't pile on any more u.s. stocks. first off, why do city markets are not in bubble territory? >> moser half the size we saw back in 2000. extended see any valuations based on bubble territory. >> you're not crazy about buying more u.s. stocks? >> we are not adding to positions. we are leery of a couple of things. the vix in