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

michael kors. 19 times earnings, $89.50. i think i like to right here. >> would you rather? >> would you rather? 55% of you said kors. that's where it is. interesting. interesting debate here. >> fun game. >> let's do it again. >> i think we will! you're not done voting yet. we came across two very intriguing stories that caught our eye today for "pops & drops." we want you to help us choose which one to talk about. so do you want to hear about a pop for a 60-meter long noodle out of china or a pop for zombie pigeons? vote on cnbc.com/vote. we will read you the story that you pick later on in the show. >>> coming up next, a harley-davidson can you plug in. details behind the iconic brand's latest foray into electric greeks aft electric vehicles after the break. tdd#: 1-800-345-2550 searching for trade ideas that spark your curiosity tdd#: 1-800-345-2550 can take you in many directions. tdd#: 1-800-345-2550 you read this. watch that. tdd#: 1-800-345-2550 you look for what's next. tdd#: 1-800-345-2550 at schwab, we can help turn inspiration into action tdd#: 1-800-345-2550 boos

michael kors, great company, great growth. even then, that stock is running out of gas. that makes sense to me. that valuation doesn't last forever. >> how about about this, though. when you mentioned staples, you said coke, 52-week high, but it's defensive. defensive issues have worked. what's the best performing sector? it's utilities. the things working right now seem defensive. if you want to go to energy, seems to me obviously the geopolitical stuff kicking up right now is helping oil prices. it's helping energy stocks. then there's all this m&a stuff. pete sees it every day, the coal buying in the energy sectors. the refiners going ballistic. it feels bubbly and it's not the thing you want to chase. >>> be uh the energy stocks were moving along before oil was moving to the upside. look at exxon. the energy stocks have been very, very strong. the utilities, to your point, i think there are folks going there maybe to hide. you look at a lot of these companies, they were beaten down. look at the valuations, now they've gotten themselves probably stretched as well. tha

i have worked with calvin klein, ralph lauren, michael kors, oscar de la renta.ve worked with almost every mass retailer. behind the a scenes way in which they get them to fit. >> some designers get them to fit better than others. some designers can't get over looking at a six foot tall model who weighs 111 pounds and wears a size two and a fit model who could be anywhere from a size four to a size size 24. dealing with reality is sometimes difficult for them. michael corners and ralph rucci were great at getting to understand the body and fit the body. >> you started your agency. what does it specialize in and how does it connect? >> we focus on fit modeling. fit models work behind the scenes with designers. i train them to effectively communicate how to correct patterns and garments and work with factories. we used to travel all around the world to the factories and work with the people who made the close. i used to give feedback. i can't move my arm. i can't sit down and look good. if the close fit well, they sell well, and fit models improve the bottom line.

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

. >> this isn't a debate about whether to buy coach over michael kors or coach over kate spade. or not at $39 a share you want to step in and take a try at coach. i think this is a great opportunity. the stock has come down 30% year to date. down at these levels it's trading 13 times earnings. the key is if you can pull up a chart a couple of years ago on coach you will see the stock comes into interesting support in the $37 to $38 range. the stock was on a downgrade i will point out. the analysts had a buy on the stock. today it's down 30%. they cut it to a hold. that sounds like a capitulation, looks like one. bottom to me. use that $ 37 level as the down side stop-loss, but i think it will alley back. >> weiss? >> mike compares notes with doc who i debated on coach and stephanie with coach in the '50s and heard the same story. 30 times earnings. here it is in the 30s. earnings are declining. i will have down earnings 14 over 13, 15 over 14. it is a fashion stock. if you want to bet the next fad, the new guy coming in, who is accomplished making coach the cool brand, the it br

. >> so we have michael kors, and chanel. >> reporter: and we noticed the makeup case, it looks liket's right out of a department store. >> in this counter what we're looking at is counterfeit makeup. and this is a true health and safety issue. >> reporter: and remember, "20/20" found the same thing back east, that makeup our team bought in new york. we took it to the lab. so cheap, we wondered was it too good to be true? and we compared it to the real thing. first, testing full price mac makeup, buying it at an authorized store, and here are the results. >> we're not seeing anything of concern in respect to metals. >> reporter: they told us it was perfectly safe. and we're about to get t results on the other mac makeup, that great deal we bought elsewhere. dr. whitney bowe, a dermatologist, waiting inside for me, and she's about to take us through the results. so this is the mac that we tested? >> exactly. >> reporter: what did you find? we start with the lead. so the lead was at least five times higher than what you should be allowed? >> yes. it was an order of magnitude higher tha

they typically save about 25% from top brands include michael kors underarmour and levi's.and kidville is taking over the kids' action in new jersey. the shop and play area will include art stations and instagram stations for family portraits. according to the "new york post" post the play centers are free to any sears shopper who bought something in the store. it is a pilot program but if it's successful other sears could get a kidville makeover as well. frank? >> interesting. now here's something that's brewing so to speak at the international space station. >> reporter: well, that's right. astronauts on board the international space station are getting a pick me up. they will soon be able to enjoy hot freshly brewed espressos and it's thanks to the italian cough tee maker and engineering -- coffee maker and engineering maker. it's called the i s-presso. it was designed to brew in space. the espresso is served in a sealed pouch and allows the astronauts the sip cough three few a -- coffee through a straw. the astronauts missed fresh coffee on board the international space

they are losing out to brands like michael kors. stocks hit a new low.ogled developers conference on wednesday. definitely a bigger focus on hardware this year. ♪ stuart: monday lunchtime. here is the real halftime report. nicole petallides, cheryl and liz both here. when will the dow hit 17,000 then what happens? >> i think we will see the dow hit 17,000 this week. generally what you see is they act almost like a magnet. it will probably tread water for a little while. that outlook remains very positive. >> glad to have you as a part of the real halftime report. staying will not be leaving most of his fortune to his children. >> this is the kind of thing that parents grapple with. the question is whether or not the grammy award winner will give his math fortune to his children. he says no. he has six children. they are spending most of the money now. he is not giving his fortune to them. i do not know. stuart: no. i've got six children. all of them have a good strong work ethic. they all get it when i pass away. >> call up your buddy staying. stuart: ch

. >> i think of something like michael kors, the success, or even diane von furstenberg, with , clearet site simple, and they have the store to back it up as well. >> that speaks to cliff's wheelhouse as well. right thaty do so other tech retailers can't get their mind around? >> great product, great service and thea product up, ecosystem -- itunes and everything that goes with it. but the stores are critical to every brand for the place you can go to get the experience in the brand. >> can you walk in as ceo and say "just be more like apple"? >> no, because millennials buy apple but they don't like it that much. they think it is unbelievably controlling and didactic -- >> what companies do millenials like? >> hmm -- >> they like value. eagle.navy, american they like the products of apple, but the company? you need iq, eq, emotional quotient, tq, you have got to be technology, and bq, bloody quick. >> what about sales, don't you have to have the right price? >> you have got to deliver priceless value, not just price. >> we have got breaking news with the dow, 17,000. >> pilgrim pride

companies than any other lawyer in 2013, working on deals including michael kors, taking them public.ook at the ipo market, the strongest since 2000, which invites all sorts of the mayor bubble conditions -- comparisons to bubble conditions. >> it is the types of companies you have and evaluations. everyone in hindsight agrees that things got out of control during the internet bubble. currently we are much better in terms of the types of companies and the more restraint on people pushing company forward. alibaba, considering are they buying into international growth, or is it just the potential for growth within china? growing in that market and growing on the internet about a completely different jobs. >> i think they're getting both. global sales are significant version of what is driving it. sales are bigger than amazon and ebay combined. this isn't a premature start a premature start up company just focused on the asia play. this is a global company that is a dominant player eri. >> we are told that the amazon-ebay blend out of china -- if jeff bezos took a stake out of a soccer t

you cannot deny michael kors outpaced its competitors particularly coach, it is a standout, revenue growthy give their conservatives and their guidance however it still is a stellar performance, you can't deny it is the number one thing people want. stuart: they really do. one last one. medtronic over the merger. can't blame them, can you? >> more power to them. more profits to the bottom line. the only people surprise of the politicians in washington who can't understand why money goes to where it is treated best. stuart: part of a trend. just before we leave you, at the half time it was germany three, portugal zero. bibig-name you know, goodyear up in a down market. this is the barons bounds. phil roosevelt is here. you wrote the column in barons this weekend. you like goodyear, up it goes on this monday morning. why do you like them? >> goodyear is a good play on rising car sales. in the u.s. car sales have gone from around 10 million in 2009 during the recession to about 16 million per year now. what that means is a lot more cars on the road that will need new tires typically every thr

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

. >> lynn, michael kors is not going to suddenly start making their shirts and purses in the united statesd. >> apples can make their iphones in the united states. >> what would happen to the prices? what would happen to the margins? >> how much labor do you think there is in an iphone? you have to really actually go to the data. when you look at what -- in an iphone there's probably $6 of labor, you know. i make the surface mount and surface mount machines that are used to make the circuit board but you can say that and it's not accurate. what's the difference in a labor dollar at foxcom than at a machine? the reality is i do this for a living, all due respect. have 120,000 employees who make things for a limping i make things in china and make things in brazil and in paris and actually makes thing did, you're not a public company. >> a public company versus a private company. you're concerned about your cash flow and they are concerned about their stock prices. >> absolutely, so what i'm saying to you is right now we don't have anything that incents people to do anything long term and lo