mr. icahn's getting to when you're saying watch the high-yield market. in my view it's a disaster waiting to happen. >> as we mentioned icahn also discussing apple today, saying he hasn't sold a single share and would buy more if it goes lower. meantime, piper jaffray coming out with a note saying there's one under the radar metric that could drive the stock higher. joining us now is the man behind that note. piper jaffray's managing director gene munster. what is it we should be looking at sneer what's the metric? >> the resale value. so to get a read on iphone demand we look at the resale value of old phones and compared to the retail value today. what we found is that the phones today are getting higher prices in the after-market, which is a sign that demand is higher. so the quick numbers are this. is it a typical iphone 6 sells for 72% of its retail value he, 285 days after the launch? that compares to an iphone 5s that sold for 60% of its value 285 days after its launch. credit my crack team here with travis for putting all this data together and tr

do you agree with mr. icahn? is the market overheated?e conversation and get in touch with us at worldwide cnbc.com. >> joining us to discuss is pm and head of global equities at henderson global investors. do you agree with mr. carl icahn? he's not the only investor to point out challenges in the high yield market. in general what do you think is driving this interest in high yield? is it monetary policy underpinned by lower interest rates? >> it might be that simple. we are in an environment where everyone is chasing high yield. there is an attraction there that you can't get elsewhere. especially in a world where bond yield versus been compressed so dramatically and of course the equity market having risen substantially, even the dividend yield on equity markets globally are also not what they used to be. it's natural they attracted a lot of attention. if you remember when we had the markets sell off on the back of last year it was a big focus given how important the energy sector has become as part of that index. it may not be truly c

chris, do you agree with some of the concerns that mr. icahn sounded?rtainly do on the equity side. i think we need to flush out the weak hands and the bubble boys and we should get it during earnings. but on the high yield side i don't agree with him. i don't think we have a big maturity rollover for at least two years and i think that high yield with the higher income is a much better bet than u.s. treasuries, the 10 or the 30 which i think is on the eve of destruction. >> eve of destruction? my goodness, me, you can't just make a statement like that and not explain, chris. >> let's explain it. you're already down 11% to 14% depending upon exactly which one you own. if you invested at the end of january. that's really tough. that's going to take people two or three years to make back that amount of money in the income the bond has. i think the same thing is true when you look at utilities and reits and other interest sensitive areas. when you say destruction, i mean going back to normal levels. for that for at least in the 10-year we might get up to 2

i think it proves that that any time that mr. icahns not necessarily for activist flavor. i don't recall there was any activist position that he ever took in netflix. or why would he? i believe if memory serves, he got in around 82, 85, somewhere in there, somewhere within that range, a great trade by carl all the way around. he's to be congratulated. >> the knock on him is not that he knew it was going to be a great company or great investment. he knew that people were getting hot on it and maybe he would take it for a ride. maybe longer than he expected. is that fair? >> i think it's generally fair. folks got hot on the stock because it deserves to be hot. it's doubled this year because the runway is still very long in terms of overall potential subscribership. these guys are still on the front edge of the s curve, both in the states and you know, all around the world with potential penetration and subscriberor ship. as long as that's the case, the stock should continue to work higher. >> the valuation, david, is it price for perfect

so mr. icahn is right that the netflixes of the world are super expensive.ames that are attractive like seagate technologies with a 4% yield and a pe of 10. even today the rail car makers are getting whacked so a company like trinity industries which is trading around eight times earnings. there are certainly bargains out there and you got to be selective. we own both of those stocks right now. but i think that if investors can focus on individual names and be an active strategy as opposed to a passive indexing strategy they can do very well in that market. >> thanks for the tips gentlemen. scott wren and john buckingham. for more on their market thoughts go to powerlunch.cnbc.com right to you nor today's power play from these two market strategists. some tips in there as well that we didn't even get to. >>> check out nike up 9% so far this year. the athletic giant set to report earnings after the bell. we'll have that story. should i buy the dow member before the results? what you need to know before you trade it. >>> plus school's out for summer. we've got

mr. carl icahn tripped workers of benefits after taking over the debt of the parent casino company. >>> >>> the state senate approved a bill that would raise the monthly phone line fee by 65 cents a month and tack on an annual 62 cent surcharge a month. it now goes to the house that passed a similar bill without the annual surcharge. >>> happening today, you'll have a second chance to learn about and react the redevelopment plans around 30th street station. amtrak and its philadelphia partners are going to be holding a second open house on the main concourse during the evening rush. the public will get an update on progress with several contests on the project. they want feedback on how to improve infrastructure and create an attractive vision for the area. >>> happening today from 10:00 to 2:00 drone safety will be put to the taste at the cape may county expert. aviation experts and engineers will be launching flights with a fixed-wing drone equipped with sensors. they will monitor to see if drones like that can fly safely over national air space. >>> we have a traffic alert for some of

mr. clean shaven. closing bell, we're nine minutes away. carl icahn has said he won't be accepting the position of secretary of treasury, but is calling on the fed to raids interest rates right now -- to raise interest rates right now, is he right? we debate it with our countdown closer next. >>> and we do have the russell 2000, we're looking at it and checking it minute by minute. are we in record territory? yes, we are right now. stay tuned. ♪ ♪ talks to another wild week giving investor no clue about rate hikes except officially saying it will happen this year. could this low interest rate environment even as they raise just a quarter of a point set our economy in markets up for a total death spiral? billionaire investor carl icahn told fox business the sad anxious to that question is yes, we must raise rates. he gave a dier warning on kaiser toe "cavuto: coast to coast." listen. >> interest raitsz rates are at a local at the federal of the history reserve. never been held down this long, and -- i don't think anyone will deny that uncharted territo