that's where vertex comes in.tions for a staggering 46% of the people who got the therapy experienced major improvement, that's gigantic. this hideous disease takes so many young people. they raised their price targets, morgan stanley raised them from $28 to $51. put that in the bank. citigroup, that's not going to hold. why did this come as such a surprise? because wall street was skeptical about vx-809. in earlier studies it showed no improvement in lung function.ç they either discounted numbers or had expectations that never reached the market. when vertex came out with data more positive than expected, it was a game changer. all of a sudden this went from dud to potential blockbuster. howe big could vx-809 be? this is one of the orphan drugs we can't get enough of. there are only 30,000 people with cystic fibrosis in america, 70,000 around the world. they could treat half of them with vx-809 and kalydeco. because there's no other competition, a drug that could do $7 billion or $8 billion if everything goes ri

be twice the number of times you visit that vertex. in other words, every interior vertex of the trip has to have even degree. now, since all the nodes at konigsberg had an odd number of edges -- each node with an odd degree -- there was no route that crossed all seven bridges without crossing one more than once. but what happens if we remove one of the konigsberg bridges? this node here has two edges now connected to it, this one has degree 4, and two of these have degree 3. so now we have two of even degree and two of odd degree. now, having done this, in fact, we can find a path that uses each bridge exactly once. and this is a much more general phenomenon. if you have two vertices of odd degree and all the rest even, then you can always find one of these so-called eulerian paths in the network. now, a second way in which you can also have an eulerian path is if all the vertices have even degree. in this case, the path will begin and end at the same vertex, and it's a cycle, or an eulerian cycle. but since all the nodes of the origi

it was suggested vertex could have a move. in the years ago. >> tom: - the company reported profits but down from a year ago despite strong sales of the mass affect video game. the stock ha been trending lower since november. down about 7% in afterhours action. take a look at our market. we have actively traited ets all frac agency lehigher lead by flx up by more than half of a percent. that is tonight's market focus. >> tom: a political uncertainty in europe, job growth here, slow in china. this fuels bonds. lindsey bell is with us tonight. the yield on the ten year bond dropped today. does this represent a bubble in bond prices. >> -- the interest rates have declined. they went from 2.4% to below 2% today. the reason for that is bays european concerns reemerged. we heard from corporate america, and we got mixed economic data from the u.s. they're driving prices up come yields down. >> tom: we have seen this for a long time. better part of 30 years the bonds yields flowing from the double digit highs from the early 80s. a lot

vertex pharma tanking after it corrected some data around a cystic fibrosis drug.5% kre lent oi tennessee original data. vertex says of the improvements were relative, not absolute, whatever that means. still some analysts out defending the stock saying the data while maybe not as good is still pretty darn good. >> okay. also some sunshine for a recent ipo. no. we're not talking about facebook. we're talking about splunk up sharply today. since its april debut the stock up about 115%. ticker symbol splk. the company makes software that collects and indexes data. currently up 2% today. >> caving gear. >>> time now for the outrage of the day which is a new segment on this show and possibly this is the first and last of them. here you go. ceo of rite-ate god an $8 million pay raise over last year's numbers. john stanley went from $2.8 million in 2010 to $10.97 million as a full year 2011 compensation. you've got stock, whatever, whatever. i don't know john standley, herb. rite-aid has been a troubled company for a decade. the stock has effectively been under 2 bucks a

vertex in specific after an analyst at jpmorgan raised their rating on vertex to overweight from neutral. and price target to $82 a share from $45. the analyst cited optimism over the company's cystic fibrosis drug. ty ler, back to you. >>> seema, let's turn now to bonds. fears of europe driving investors to the safety of u.s. treasuries. yields on the 10-year falling to their lowest level since last september. let's look at the bonds market action. there we start with the three-month t-bell. it's dead in the water. why? it pays no yield. look at that, 0%. no change, basically. 2-year note, the yield is up a little bit. but the 5-year note's yield, the 10-year note yield, 1.78 coming down and the 30-year t bond the yield there moving down. jane, let's go to jane wells monitoring jerry brown's news conference talking about the growing state's budget deficit. jane. >> tyler, yes, the governor just wrapped up a news conference on how he hopes to try and close a $16 billion deficit. and somebody asked him what impact facebook going public may have in helping close that budget. here's what he

i think vertex goes remarkably higher.made a lot of back and forths at these levels but i think it's going to see $80. it may be the best biotech other than celgene and it has more up side. that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering, web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. dave, i've downloaded a virus. yeah. ♪ dave, where are we on the new laptop? it's so slow! i'm calling dave. [ telephone rings ] [ male announcer ] in a small business, technology is all you. that's why you've got us. at the staples pc savings event, for a limited time get up to $200 off select computers. staples

vertex up 47.5%. >> it's because of better than expected result out of a still on gone phase-two study on adults with cystic fibrosis so far they have all seen improved lung function of the very good news. they're hoping sales will be very very strong in the coming years. back in november there were worries it was losing grournd as it tries to compete. as you can see here shares have almost doubled making up considerable ground since november. >>> summer movie season under way. superheros leading the charge. lights, camera. >> after john carder bomb, disney needed a hit. marvel's "the avengers" had the biggest hit in the u.s. opening ever bringing in $207 million in the box office. the movie is on track to surpass $1 billion of the global box office justifying disney's $4 billion acquisition of marvel and it will help compensate for the write down they're taking on "john carter." we'll have a interview with bob iger. sue, over to you. >> we look forward to that very much. >>> europe goes left. so what if this is the beginning of the end for greece and the euro zone and what if france s

i think vertex goes remarkably higher.t has made a lot of back and forth at these levels but i think it's going to see $80. it may be the best biotech other than celgene and it has more upside. that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. >>> after a day where the market was crushed by europe in the morning, only to rebound wonderfully in the afternoon, it might be worth taking some time to look for stocks in out of favor sectors that nevertheless have powerful secular growth trends going for them. take lsi corporation. just lsi for all you home gamers. semiconductor company that makes chips for storage and network technologies. tech is about as out of favor as it gets right now but they benefit from the explosion of digital information in our society, what lsi calls the data deluge. that's a huge secular theme. we're always talking about data. they make chips for routers, switches and wireless base stations. they enable mobile networks and data

i think vertex goes remarkably higher. it has made a lot of back and forth at these levels but i think it's going to see $80. it may be the best biotech other than celgene and it has more upside. that, ladies and gentlemen, is the conclusion of the lightning round! >> the lightning round is sponsored by td ameritrade. ♪ [ female announcer ] letting her home be turned into a training facility? ♪ this olympian's mom has been doing it for years. she's got bounty. in this lab demo, one sheet of new bounty leaves this surface cleaner than two sheets of the leading ordinary brand. bounty has trap and lock technology to soak up big spills and lock them in. let the spills begin. p&g. proud sponsor of the olympic games. whose non-stop day starts with back pain... and a choice. take advil now and maybe up to four in a day. or choose aleve and two pills for a day free of pain. way to go, coach. ♪ >>> after a day where the market was crushed by europe in the morning, only to rebound wonderfully in the afternoon, it might be worth taki

one biotech vertex revising its drug data, it revealed that the corrected data appears to be weak thaneviously released. a lot of up sit traders conveying disappointment with that tweet from otherwiyster. brad saying focus in on how meaningful improvement this lung function can be. bottom line, the mix up in data is scary the retail guy in investing which is already a volatile sector to trade. >> and you notice that in that first hour that we always refer to as amateur hour, the stock traded all the way down to $50 or thereabouts. made a big v shape bottom right there and bounced $6 or 7s back to the up side. so i've used that as your point reference going forward and i think people will be comfortable selling puts at around that level. >> the sector is trading very well. taking it very much in stride. just last week ibb hit an all-time high. so i continue to like the space. >> do you have a maim yname you >> i would stick with the sector. >> another sector gaining traction is basic materials. trade idea indicating its seen double its average daily social activity. and poipding out thi

. >> and a dose of sunshine as drug makers stock is jumping after cystic fibrosis therapy showing vertexst year. oh, look at the spike today. up 54%, incredible over the past year, up 5.7%. >> up next, gluten free pizza. sort of. we'll explain when we return. like in a special ops mission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering, web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. i have twins, 21 years old. each kid has their own path. they grow up, and they're out having their life. i really started to talk to them about the things that are important that they have to take ownership over. my name's colleen stiles, and my kids and i did our wills on legalzoom. [ shapiro ] we created legalzoom to help you take care of the ones you love. go to legalzoom.com today and complete y

vertex is so important, because it's the only thing for cystic fibrosis sufferers. you'll be taking this drug, i believe. unfortunately it's a terrible disease. and this drug will be a monopoly. and i think you're right. this is bigger than even the stock up 20. it goes even higher. i hope it comes in so i can recommend it. hot commodity, here's the lens you've got to look at. listen, people, if it needs commodities to go higher, it ain't working. if it needs commodities to go lower, uses a lot, hey, that's what's winning. it's going to stay that way for a while. "mad money" will be right back. >>> coming up, insurance premium? shares of aig took a hit today after news the government was winding down its stake in the company. cramer is deciding if this could be opportunity knocking. >>> and later, organic growth. health conscious consumers' desire for fresh food has been fueling growth. sent stock to a new all-time high. should investors still be hungry for shares? cramer's exclusive with the company's ceo is just ahead. >>> plus, bow guard versus new blood. cramer

lastly, vertex is under pressure, giving up gains that it posted earlier this month, after it reported positive results on a new drug to treat systic fine br systic fine broe sis. the stock is off just about 12% right now. bill, back to you. >> mary, thank you. teledyne. they called it teddy. it was like a $500 stock and so volatile and day traders loved to get in and out of that on an hourly basis. but i'm showing my age here. >> sounds familiar. we've seen a few of those these days. >> yes, that is for sure. >>> we're heading towards the close. starting to move higher, the dow up 100 points again off the highs. we were up 135 at peak today. >> we have a lot more ahead. you can't afford to miss it. keep it right here on "closing bell." >>> facebook may be dialing up a move for the smartphone industry. will that help the social media giant rake in more revenue or will facebook struggle to compete against apple? jpmorgan selling profits to offset the massive trading loss. trying to jump up short-term earnings at the expense of long-term growth? they may disagree on a lot of things but t

take a l at shares of vertex. than doubling today after data coming out of that ongoing phase two study for the company's treatment to treat cystic fibrosis in adult. showing better than effected lung funk suffering from a common gene mutation. very bullish on the possibility of this drug going forward as you can see. but shares of cognizant technology going ought other way and the company lowered full year expectations despite reporting inline earnings. bill? >> didn't i see you on the "today" show over the week end? >> yes, did you. >> good job. >> thank you very much. yeah, a great time there. about 18 minute left here and time for market strategy check at this hour. let's start with the volatility index. retreating from the highest close since mid april. right now, down a fraction or a little over 1% at 1894 as traders and investors digest election results over europe out of the weekend. now to the nasdaq composite. not too far from session highs though it is back below 3,000 for a second day in a row. right n

. >> and then the best performing mid cap 400 name this year, vertex considers what has been an unreal run in biotechs. >> the reason we're focusing on aol is because the stock is hitting a two-year high today as well. why? why the sudden turnarounds? joining us is barclays anthony decla mente. anthony, to you first of all. what's made this stock go up by so much? >> the company's got a lot of operational momentum. they've guided towards revenue growth. they've raised guidance for profitability. there's a lot of brands within aol that are working. people think of aol, they think about the old dial-up access business. they think about the worst merger in corporate history. there are some brands like "huffington post" like patch helping drive growth. the company's guided towards revenue growth. one thing they did recently is sold a bunch of patents to microsoft and announced that all of that billion dollars would get returned to shareholders in the form of a buyback. so that's what you see in the price action of the stock. but i would note that even pro forma, that transaction, this is a

vertex pharmaceuticals sliding sharply after correcting its cystic fibrosis combo data.tors really upset with that revision. i should say we are off our lows. stock down better than 11%. sue, sending it back to you. >> thank you very much. >>> a check on the bond market now right now. rick santelli's tracking the action for us once again from the cme in chicago. we saw a little move into the bond market earlier this morning. is it holding? >> it's holding. we're going to get to the bonds. it's going to be the last train car on this train. let's start at the forensics. putting everything together. if you look at the euro, everything happened between 11:00 and 12:00 eastern today. you can clearly see how the euro gave up ground. we're all in one giant trade. it begins and ends with europe. as you look at that, you see what everybody's been referring to. how much gold lost very quickly. didn't stop there. look at the s&p 500. how much ground it gave up. now we get to the protagonist here. this is what everybody wants to own. treasuries, bunds, gilds. yield pushed down to th

take a look at shares of vertex. up over 44%.erim results from a phase two study of a drug with positive results. groupon, shares up almost 6.5% from the daily deal site. ceo putting out in his annual letter shag the recent bumpiness this company has seen is a result of rapid growth. investors are buying into that today. off about 40% from the ipo price. take a look at shares of first solar down 1% sitting down at all-time lows since that ipo. >>> obvious concerns about the strength of the recovery, we are taking a dive onto the travel and leisure industry. >> any honest conversation about your industry has to start with the "costa concordia," the terrible tragedy we had in italy. not your ship or your line, but you have in a delayed reaction your second and third quarter bookings are going to be down. what is the latest on that? >> we've seen the business come steadily back from a tragic event that was extraordinarily rare with a which is with a great safety track record. this was a very significant event in the industry. in gen

vertex sliding after reports that the drug was less powerful than previously reported.y developing its own phone? it is supposedly in the works, but whether ill it stand a chan. but jim paulson and bill stone here to tell us how to get your portfolio ready for all the data coming. and then the apple tv rumors are back. foxconn reportedly in the trial stages of making that long a wait tv set. and the biggest problem with facebook. we'll explore why the social networks 900 million users are so hard to value and what that means for the company going forward. that's all coming up in the next hour. but first the facebook phone rumors. opera software soaring on reports that facebook might buy the company for its mobile phone technology. jon fortt has more on what it might mean. >> indeed, mark zuckerberg said we shouldn't expect more billion dollar deals, but here we he are. opera stock up better than 17% on rumors facebook might take it out. it would cost about a billion dollars. so if zuckerberg decides to buy this, and it's his decision, what would facebook get? opera has

shares are vertex pharmaceuticals are under pressure this morning, the company correcting previouslys treatment. it lowers the number of patients reported to see lung improvem t improvement. the stock is down sharply. >> dollar for announces a 2 for 1 stop split. >> coming up, jack and suzy welch will join us to receive three book awards. and friday we'll have a special guest, alan greenspan. greenspant in making things. infrastructure, construction, production. we need it now more than ever. chevron's putting more than $8 billion dollars back in the u.s. economy this year. in pipes, cement, steel, jobs, energy. we need to get the wheels turning. i'm proud of that. making real things... for real. ...that make a real difference. ♪ tdd# 1-800-345-2550 there are atm fees. tdd# 1-800-345-2550 account service fees. tdd# 1-800-345-2550 and the most dreaded fees of all, hidden fees. tdd# 1-800-345-2550 at charles schwab, you won't pay fees on top of fees. tdd# 1-800-345-2550 no monthly account service fees. tdd# 1-800-345-2550 no hidden fees. tdd# 1-800-345-2550 and we rebate every atm fee.

. >> among this morning's corporate movers, check out the vars shares of vertex, reporting positive data. it's a heart breaking condition and you've seen kids that have to clear out their lungs and the prognosis isn't always great. that's good news. i'm going to look into that. >> good. let's get back to becky quick in carter lake, iowa with our newsmaker of the morning. becky. >> thank you. of course our newsmaker of the morning is warren buffett coming fresh off the berkshire hathaway annual meeting. 35,000 shareholders descended and they did a lot shopping. it's interesting because our furniture store will do $35 million in business. we've done a thousand dollars of business per every man, child and woman. the shareholders were out getting bargains. >> that says a lot about the shareholders, the numbers coming in, but it says something about consumers, too. >> sure. they're in a different mood than they were a few years ago. i saw that at the jewelry store, too. i sold jewelry for two and a quarter hours and i couldn't sell tickets fast enough. crazy warren was in his element. >> it's

. >> vertex. >> morgan stanley saying this drug really works. i hope it works.ow a lot of people who suffer from it. >> jpmorgan initiating coverage of splunk. >> this is a company that is web monitoring. this is a facebook-related company. >> and finally acom? >> nbc canceled its program. it was an ad for ancestry.com. who's up on "mad" tonight? >> go to it this weekend. >> see you tonight. groupon down sharply over the past few weeks. we'll talk about that after the break. an airline has planes... and people. and the planes can seem the same so, it comes down to the people. because, bad weather the price of oil those are every airlines reality. and solutions won't come from 500 tons of metal and a paint job. they'll come from people. delta people. who made us one of the biggest airlines in the world. and then decided that wasn't enough. ♪ there'll be the usual presentations on research. and development. some new members of the team will be introduced. the chairman emeritus will distribute his usual wisdom. and you? well, you're the chief life officer. you just