Transcripts For CNBC Closing Bell 20140512

Even as the nasdaq is rallying today. Theres red flags for tech. A very bearish outlook for Morgan Stanley on tablet, fesk. You need to hear whats going on in sales on devices like ipads. A special report coming up. The quarterbacks for ipad sales going forward. Hope you saw it this morning. Tim geithner unplugged. More of cnbcs interview with the former treasury Second Coming up. What does he say to people who still insist the Bank Bailouts was unnecessary. Tim geithner with very honest and straightforward answers as he spoke to our own Andrew Ross Sorkin. Coming up on closing bell. Looking forward to that very much. Final hour, continuing the snapback that began on friday if you want to step all the way back. Dow adding 115 points, shy of 16,500. S p 500, the nasdaq is the real talk, up 27 points, 1. 8 and theres the s p. Adding 17 points or 1 today, a strong start. 1. 8 on the nasdaq. Joining us. We have kathy wood, ron weiner and hank smith, steve saks from pro share advise errs and our own Rick Santelli joining us as well. Lately people have been rooking to the defensive issues, the value plays and suddenly everybody is going up. What do you make of this ral . Seen this a couple of days over the last few weeks, mean reversion trade. I think thats all it is. At the end of the day theres somewhat excessive valuations, seen that in tech and biotech in particular. Might be more work to do. I think were getting close. As we look to the back half of the year, the sectors that have underperformed the most over the First Quarter, quarter and a half have been underplaced. I know youre echoing sees thoughts. Is it going to look more like 2013 and what do you see of what happens in terms of leadership and opportunity. Earnings are not that good. They are solid. Companies dont go up or down in three weeks. Thats people buying and selling. If you want to make money for the long term, earn them both. I cant tell you whether value or growth is the thing thats going to work for the small or large. Value growth, have your feet in both. I dont know whats better and nobody else does either. Hank smith, where are you . Where will you put some money to lead the charge here . Lets start with where i want could, wouldnt go in fixed income which we still view as the most overvalued asset class there is, particularly sovereign debt so for the long term stocks will give you the best return and i think with regard to this year even though bonds have gotten off to a much better start id oouz use that as an opportunity to sell the stocks and buy the stock market that looks very good for us. Consolidated 2013 gains and getting rid of the excesses in biotech and social media and what have you and at the end of the year in mine high single digit return but it will look very good, and as you mentioned were still in the middle innings of this bull market in our view. Take a twitter, for example, an unusual case. Had a big run one in 2013. In some ways it feels like were starting over again. Thats why i was asking maybe its time. Are you looking to add exposure at some of these levels . We stick with much more conservative blue chip dividendpaying stocks so we think its very constructive that the market is taking out speculation without impacting the broader market. Kathy, what do you think . Growth or value . Lately its been value and today its everybody going up. Where are you putting money to work. Were seeing signs that the economy is really picking up. Housing seemed to be falters so investors were paying up for scarce growth. Now that were seeing the economy recover, we think some of the social networking stocks and internet cloudbased stocks like Athena Health have been cut in half and way overdone on the downside. We dont believe were in a bubble but in an unbubble as far as the stocks go. Whats going on with these companies is pretty profound. This is a great point. Like Athena Health, do you go so far as to add twitter . What are some of the places that you think is attractive. Very focused on general Purpose Technology platforms, very Big Technology companies that are providing platforms that cut across sectors and that enable a tremendous amount of innovation, take a lot of inefficiencies out of the system. Such as . Well, twitter, facebook, Athena Health, all of those are in that category. Some of the usual suspects, very interesting. Rick santelli, just looking at the numbers today, looks like they are selling a few bonds and buying a few stocks here. What do you make of todays action . Well, if you look over the last several friday to monday cycles knowing that geopolitics is the new weather for the marketplace in the u. S. , weve seen in the treasury complex lower yields on friday going into the weekend and yields pop several basis points on monday. Right. This is the third time around. If you look at the chart and i started this chart at the 29th and the last time we were at these yields was the first of april. A bit of a higher rate is helping the dollar index and the next two are very enlightening. The highyield junkie and barclays high yield spread relationship for five years and all our guests are talking about how its bubble itches in sovereign debt, the risks where the bubble is at and the risks is where all the governments around the world are hedging and wedging and manipulating to try to make jobs and growth, but governments dont make jobs and growth. Risk is being overplayed just like prior to the 08 crisis. How will it turn out . I cant tell you but stroms always last longer to the upside . What about the move in gold. Theres a couple other things that i find interesting. Aggregate wages are running at a 4. 5 space and its been muted perhaps by geopolitical factors. Is that the same thing, stuff thats happening outside this country in. Gold trying to acaptain would be trying to look at Climate Change and look at how they havent adapt ed scientific principled to it. I know the bring of america is a lot of brokerages out there saying this is the time to sell. The chart doesnt look like its time to sell. Very limited upside. Anybody buying gold, like gold . Its not a trend. I dont think as advisers we would do that. Anybody on the commodity play. A lot of commodities have been very strong. Anybody buying commodity plays right now. Looking for inflation here. Im not buying xhod kiss, but i do think that they are seeing a move because the economy is picking up and i do think the dollar will be a dampner on commodities so more in a holding pattern. You see the dollar strengthening here. Yes, i do. I ultimately think that the commodity trade is an inflation trade, global growing Macro Economic story. I think weve seen the trough in commodities for the long term. And i wonder to what extent chinese concerns will weigh in. We talked last week about the sharp rebound that we saw indicating that were shaking off some of the weather stuff that happened earlier this year. Theres been a huge drop in exports, notably to china. While demand is picking up. How much growth do you think could be here . Well, i think it is important but i would remind everybody out there that buying commodities is speculating. Theres no income or balance sheets. Youre totally dependant. But the government cant print corn or wheat, the government cant print beans and the government cant print oil. The world needs energy no matter what the flat earthers have to say and the food commodities are going to do well this season. Everybody should read about rice, if we want to talk commodities. Great report in the economist. If you want to channel a couple billion dollars to something that can really help the worlds population. Theres the word for the gang. Buy rice. I dont know if you want to buy it. Invest in it. Were up 70 points right now. I think its about the high for the day with a gain of 1. 7 . The dow and the s p are in record territory with todays rally. Names like pan doro are among those that have been beaten down and are rebounding today. Going to a gogo. Also. Morgan stanleys slashing its growth forecast for tablets. By more than half. Wait until you hear how that could affect your portfolio. And pandora heating up on the heels of the big wall street upgrade and how wary should they be with the deal for beats electronics in the work. A stock brawl on pandora coming up. Weekdays are for rising to the challenge. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink® your link to whats next. Carstheyre why we innovate. Theyre who we protect. Theyre why we make life less complicated. Its about people. We are volvo of sweden. Rally day on wall street. Pretty strong markets and it started in asia overnight. Strong markets then and european markets were strong this morning and now the dow and s p are in record territory where they stand right now. Look at the nasdaq, thats up 1. 7 , all just oohing and awing over that until we saw the russell 2000, the one in correct territory recently, now popping today to the gain of 2. 5 . Bertha coombs, whats driving these markets . Food, for one thing. Pinnacle is going to be acquired by hillshire brands at 6. 6 billion. It comes to about 36, two cents a share and 18 premium, and other Food Companies are moving high as a result. Hain celestial and twitter gaining ground after sun trust upgraded the stock from a brie to neutral with a 45 price target. Took more than 150 characters to do so. And whirlpool gaining grons they will affirm guidance at the building conference this wednesday and were ending with gogo after posting a higher than expected 30 jump in revenue. Gogo trading up and i admit if its there i use it. Lets talk about it, more on where this arkd communicator is. We bring in the president and ceo of gogo. People are surprised. Revenue grow and this is a growing field. We had a great quarter exceeding expectations and we announced plans to expand capacity and also announced signing up a new airline. Were excited about all these things. In that case why cant you boast Earnings Growth or earnings, period. At the very early stages of a capital intensive industry and showed significant improvements some quarter over quarter and the last several years and this will be profitable. We have very good gross margin. We run about 50 and we think thats already sufficient. What about this move by 1888to provide this move with honeywell. Thats a. Weve been winning by getting the new solutions into the market and the new solutions will be faster and arrive sooner than the proposed 1888solution. We continually see competitors talk about what they are going to do in the future and compare it to what gogo did this the past. Thats an erroneous comparison. We won in the past and will continue to win. No change in strategy or pricing, nothing, youll just proceed as if no at t is moving into the neighborhood. A little extra motivation to run harder and faster but the same plan we want to keep signing up the airlines, and we want to keep introducing Better Solutions into the marketplace. We had did a lot towards that end and thats been our track record over 20 years in this business. You also point out you got, as you said, 20 years. Its taken a while to formulate these partnerships, to get the technology going. All of that is understood, but it almost seems like the biggest risk here is customer satisfaction. Bill tweeted out just, you know, talking about gogo, your potential rivalry coming up with at t and asked people what they thought on twitter and the reaction, frankly, was somewhat negative. People thought that it was too slow or that the product itself wasnt that great. I realize they chose this wasnt an initial survey. Its not like were picking on, but that has been the knock. Im just curious. How much more investment is it going to require to make your service fast enough, reliable enough, user friendly enough, especially with the big rival potentially coming . Yeah. You know, my 30 now years in telecom, every time you introduce a new Telecom Technology in the early days youre always rushing to keep up with demand. Ask at t about manhattan after they launched the iphone. Its tough in the early days but thats all good news. You solve those problems and keep it growing, and we have the best technology road map and were introducing at t for today. Thats really making a difference in the marketplace. And what 2ku and gto come that will be even better. Thats just the way it goes. Youve been in the business for a long time in, communications, so youve seen a lot of Companies Come and go. Those that have the better new mousetrap, whatever. My guess, and let me get your take on this. Gogo is right for a takeover. You develop the technology. You develop the relationships. You get the penetration into the market. Youve got a great stock price right now and people are going to move in, an rather than try and reinvent the wheel on themselves they simply buy gogo. Well, first, as a matter of policy we dont comment on m a but i do believe strongly we have the resources to suck seese seed as an independent entity. Theres only 40,000 planes in the world. 20,000 commercial and 30,000 Business Jets and gogo is spending what it needs to spend to develop the technology in our space. All the more reason to buy you because there are a finite number of airplanes out there that can take this kind of technology. Yeah. Again, we dont comment any of that. Ill leave it at that. One last question and i know some has to do with new satellites getting up in the air with regard to the efficiency and the bandwidth youre able to provi provide. Is that something you with gogo can provide or do you have to rely on other tech have i . First, our technology solutions, many that exist on existing satellites, so were not dependant on the launch, but we do expect Satellite Technology to keep improving. Were not in the business of launching satellites. We leave that to others. I imagine its a little more sophisticated. Great to see you, michael. Have a good day. Im one of these people, bill works just i like the fact that i cant get wifi on a plane. Unplug me. Read a become or something. Got about 35 minutes to go here into the close and a strong day it looks like for these indexes. Now well keep a close eye on whats happening in the ukraine for any changes there. The dow is adding 108 points. The s p 16 and the nasdaq 70. Thats 70 today. Big number. Plus, as we mentioned, the russell 2000 is up 2. 5 right now. Anything can happen in the final hours so dont go anywhere on that. Also, up next, as a California Community battles a hot sauce maker to shut down because of the smell in the community, at least 15 states are wooing that company to relocate all for about 80 jobs. Well speak with a texas lawmaker about his efforts to lasso that company to the Lone Star State coming up. Announcer where can an investor be a name and not a number . Scottrade. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. So when i have questions, i can talk to someone who knows exactly how i trade. Because i dont trade like everybody. I trade like me. Thats why im with scottrade. Announcer scottrade proud to be ranked best overall client experience. Over 1. 2 billion eyeballs are on us during the two weeks at wimbledon. True tennis fans want to know whats happening, they dont want to just see whats happening, they want to know and understand why its happening. Anybody can just put data up, but we want to get a reaction, make it far more interactive. We rely on the cloud to provide that immersive digital capability. Breaking news on General Motors. Whats going on. Another twist and turn in the ignition twist israel. A new lawsuit has been filed on behalf of the melton family. Attorney lanz cooper filed run of the original lawsuits on behalf of the daughter who died in a 2005 chevy cobalt. Now they have filed a new lawsuit. The new lawsuit accuses General Motors of concealing evidence. The attorney basically said, look, people inside General Motors. We want to find out who lied about this, his words, not mine, planning on deposing a number of people at General Motors and hoping to include Ceo Mary Barra who said she knew nothing of this recall until it was brought to her attention later this year. Thats the latest on the faulty gm ignition switch. Back to you you do have a special coming up on gm this weekend, is that right . And were going to look at this. Failure to recall, investigating gm and at the party of the recall is a decision made by a form former engineer, the decision was brought up at the congressional hearings and according to lance cooper, i want to talk to giorgio again and other executives. Thats what the attorney for the melton family is saying. One you cant miss. Not only people who own the sandercock. Thanks, phil. Sriracha, the wildly popular hot sauce maker has been feeling the feet. A big deal out there. The condiments manufacturer has been in a hotly contested war of words from legal action from neighbors who claim that the spicy smells that come from the factory are harmful and other states are wooing this company hoping to net a spicy deal and some added jobs. Scott cohn is in california with the latest. If you dont know the product by number. Its made by hyfong foods. The news we can tell you they are planning to stay and are looking to expand possibly to texas. What was the pitch and the response. We spoke about the texas miracle. We have lower regulations and fair legal system so were not frivolously sued. To comes to texas means having a business that can grow and grow well. Full time 80 jobs. Not a huge business, a little bit of a publicity stunt going on here. In the beginning people believed thats what it was. During the growing season this factory is full and overall youre looking at 3,000 jobs during certain parts of the growing season. Is personal speaks to the competition with the states where texas does pretty well. Here in this situation youve got a city council that is saying well shut this plant down. One of the most desired products stops because in four complaints. That doesnt happen in texas. We dont have a regulatory structure that would allow two or three people from a community to shut down a plant. Thats one. Theres a reason why companies are leaving california. Doesnt make me feel good if i have a problem with the plant youll be biased towards the business. Theres a gentle boston between making sure weve got clean air for our communities and thats a philosophical difference. Our Regulatory Agency is concerned. Were concerned and we recognize in a community where this may end were going be jobs and for us in california thats critically important. That was a chopper that was going through. Okay. One of the choppers. This is getting a lot of attention, this particular visit and how often do you do this . Do you go to other states looking to. Lure other companies. Im curious about this other competition amongst states. How often do you make these kinds of twins. Our governor has gone across the country to court these types of fix. I dont do a number of these Economic Development missions but generally were not doing this on a regular business. Are you including tax breaks to your company that relocate to your state and if show. How jen rout are they and for how long . We do provide certain economic incentives . They can be any number of things, tax abatements and tax credits and relief from tax for property or other types of incentives, and to get a company to move well offer an addition number of incentives. Appreciate t. Interesting to see how this goes and if they do expand to texas and our top 14 business rankings are coming next month. Love the guessing game involved with that all the time. Among the states, too. Exactly. Now i get it. Those were coppers, the kind that you were riding by there. The nasdaq is up 70 plus and the russell 2000 which has been in correction territory. And pandora, one of the names going gangbusters on wall street though its ifn up its given up. Why do they do it . Why mountain dew is the only soft drinkmaker thats still growing its market share . Sarah eisen taps into this story coming back after this. [ dog barks ] [ male announcer ] imagine the cars we drive. 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A lot of big moves at the nasdaq. Resurgence in tech. See levels that market technicians watch. Trip adviser, one of the socalled momentum stocks on the top of the list. Nasdaq biotech etf outperforming though jpmorgan this morning writing that sentiment across the bio sector remains volatile and an underwhelming First Quarter earnings. Season. The big question is will this trend hold. Some of the momentum stocks are still trading at lofty valuations. Back over to you, kelly and bill. There they are. Still sitting about those levels and Something Else that could impact the company is the beats acquisition by apple. Is this the time to buy in on pandora. Andrew keene thinks theres huge have and lackluster earnings and slowing mobile growth would really hurt this company. Good to see you both. Lets duke it out. Is the beats acquisition going to hurt them that much. We think its a longterm negative and apple has grown its market share with itunes radio as of december owe beat hits to that later on down the road. What concerns us is mobile rpms. Flat monthly users and ultimate usage this month in april went from 1. 8 billion in march to 1. 7 billion. So what about those trends . Why do you like the shares here . Heres the thing. The fact of the matter is 75 million users, look at the market cap, coming in at 65 per user which is pretty trip. They can be absolutely swallowed by a microsoft, an apple or facebook in a heartbeat. Theres no way this company is only half as good. You going to buy it for that. Technically is looks like it has bottom. Out of the high crout names and google and into exxon mobile and this stock gets 25 and could pop in a heartbeat. I think its bottomed at 21 and i think it can go north of 30. Are we talking different time frames. Sounds like youre wanting to trade for a mop. When we upgraded this last year and downgraded at 34. A little pat on the back. We think its another leg down. Can someone buy pandora . Sure. You cant get 75 million users for that price and someone like apple and microsoft and google can do it over ten years. Theres 75 million users built into it. When were talking about radio, whats the opportunity of radio . The opportunity of radio is to go into cars and to cars its going to take ten years at the current rate of replacing the cars, and, you know, roughly 20 of pandora cars. Let me ask you real quick. They say theres 450 different attributes and can help match and cater to what you really like. Are you saying that nobody are you saying for somebody else to do that. They can do it for more money and why youre not worried about the technological advantage but to pay for a company thats mar sin challenged needs something more than superior technology. You need the ability to monetize. Got to go. And its whats app, not whats up . 15 minutes to go into the clouse close. Dow up 119 points. We certainly havent given up any of the gains. Dont bogart my dew. What does that mean . Sarah eisen is here with more on that story coming up. Were moving our company to new york state. The numbers are impressive. Over 400,000 new private sector jobs. Making new york state number two in the nation in new private sector job creation. With 10 Regional Development strategies to fit your business needs. And now its even better because theyve introduced startup new york. With the state creating dozens of taxfree zones where businesses pay no taxes for ten years. Become the next business to discover the new new york. [ male announcer ] see if your business qualifies. Customizable charts, powerful screening tools, and guaranteed onesecond trades. And at the center of it all is a surprisingly low price just 7. 95. In fact, fidelity gives you lower trade commissions than schwab, td ameritrade, and etrade. Im monica santiago of fidelity investments, and low fees and commissions are another reason serious investors are choosing fidelity. Call or click to open your fidelity account today. I got more advice than i knew what to do with. What i needed was information i could trust on how to take care of me and my baby. Luckily, unitedhealthcare has a Simple Program that helps moms stay on track with their doctors and get the right care and guidancebefore and after the baby is born. Simple is good right now. anncr vo innovations that work for you. Thats health in numbers. Unitedhealthcare. Welcome back. Heading into the close here and looks like a strong start to the trading week for all of the indexes and the russell 2000, as bill has mentioned, this is the going into the weekend, there was this question. Would the the bigger indexes follow the russell and small caps down, or would the small caps rebound . Today you get your answer. They are shooting up to the tune of 2. 5 . The dow is up 115, bill. You going to drink that . No, you go first. Can i have that . Thats all yours. Mountain dew, just do it. Pepsicos mountain dew is the only soft drink thats growing market share right now. Ill have to bring that one home for dad actually. Sarah eisen, whats going on . Martin dew has remained remarkably resilient as a brand given the fact that weve seen nine years in a row. Its been a terrible few years for soda sales in this country. Just talking to john foschi of jorgan, an analyst for the sector pepsi and coke and says mountain dew is a big deal for pepsico because without it their carbonated beverage sales would look a lot worse and we know thats numbers are under scrutiny right now so the question is why is mountain dew such a bright spot . Well, loyal fanatical fan base for one. What pepsi calls the dew nation and pepsi has figured out that the demo, young, millennial males, active perhaps in dewmocracy where they can pick their own dew profiles is the same in the u. S. And everywhere around the world. Its remarkably consistent and extremely loyal. There is the market share. Its really helped cushion a broad soda slowdown. Mountain dew, as you can see, mountain share actually growing, market share, versus pepsis koala, and whats further is diet mountain dew has outperformed the diet category for the last three years. It also, it turns out, the most popular 20 ounce bottle sold at gas and Convenience Stores something that an lice lifts say is a big profit driver. Can pepsico leverage this brand with new products like the baja blast to help actually offset what they are seeing right now which is a decline in carbonated soft drinks. Do you think mountain dow will be the number one soft drink. It beats diet pepsi and dr. Pepper and snapple. It depends. For me its a little sweet. You havent developed the right taste for it. Not in the demo. Not a male millennial. No, im not. Thanks, sarah. Good stuff. Heading towards the close. Ten minutes left in the trading session. No sign of a letup in this rally with the dow up 117. Its in record tour try and so is the s p. Yeah. Geopolitics has been one factor moving these markets as well. After the bell, russian president Vladimir Putin hitting the ice over the weekend and go figure. He scored big. Were talking about him seriously playing hockey. Sick goals for the nations lead leader. The video you have to see to believe coming up. E moment is r. Cialis is also the only daily ed tabletmoment is r. Approved to treat symptoms of bph, like needing to go frequently. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain, as it may cause an unsafe drop in blood pressure. 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Joining here on the market. Anthony chan from chase. We watch the blue chips going higher last week, even as the small caps and the momentum stocks were going lower. Now everybody is going up. What changed . What happened . Well, whats changed is more people are believing that this major acceleration of Economic Growth which youve been talking about. Will in fact occur. And some of the work shows that when that happens you tend to see the tenyear rate going up on average by 35 basis points right in a quarter thats happening and thats good news for the market. What are you doing right now, trying to play the growth stocks, or are you going to try to pick up and scoop up some of the momentum players beaten down . Were staying out of the momentum plays and really sticking with quality names . Companies that can pass on pricing on to consumers and really take advantage of whats going on in the markets . We think the consumer is going to come back later on in the year and were pretty well positioned for that. I agree with mike. One of the things were starting to see is the stabilization of gas prices. Prices from the peak last year are starting to come down and thats always good for consumer spending. Get gas line prices going down. Created ed 2. 3 million jobs. Thats good for consume sflers what happe. What happens if draghi continues to talk down the dollar . Does that play into your Growth Strategy as well . Emerging markets is where we have positions on there. Do you see a stronger dollar . Well be being somewhere in the neighborhood of 130 to 132 as the European Bank gets a little easier. Good to see you both. Thanks for your time on this. Well come back with the closing countdown, kind of moving off the highs of the session. Stay tuned. More after this. Okay, does it bother anybody else that the mime is talking . 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Become the next business to discover the new new york. [ male announcer ] see if your business qualifies. Who found a magic seashell. It told him what was happening on the Trading Floor in real time. The shell brought him great fame. But then, one day, he noticed that everybody could have a magic seashell. [ indistinct talking ] [ male announcer ] right there in their Trading Platform. So the magic shell went back to being a. Shell. Get live squawks right in your Trading Platform with thinkorswim from td ameritrade. All right. Here we go. If you just joined us, rally y day. Have the markets shifted fear . Alltime high, s p up 18 points, alltime high. Nasdaq Even Stronger percentagewise up 1. 7 , but the big winner of the four major averages we keep an eye on, the russell 2000 which has been up 2. 5 in todays trade. There it is, a gain of 26 points here. Bob pisani. What a day. And its not just biotech and internet stocks that rallied, too. All those indexes were up 3 . A lot of people have been short these groups so i think you have a little Short Covering going here but other groups are underperforming, banks, retailers, Home Builders, they have all been down on this quarter. And a lot of people have been worried about the infection spreading from the internet stocks to the banks. But it was the other way around. Not only biotech and internet but the groups that were also weak, also on the upside and bond yields moving up. India doing well and china doing well on top of that. Big day. Does this mean a new are we shifting to a new gear on wall street . Something well talk about coming up here on the second hour of closing bell with kelly evans and company. Have a good evening. Ill see you tomorrow. And welcome to closing bell, everybody. As you can see from the graphics there we are going out with markets here apparently setting new alltime highs. Im starting to feel like a broken record. Im kelly evans. Welcome to the second hour of the program. Starting up the day on wall street. The dow and s p 500 closing on this monday in record territory. What a way to kick off the week. The dow adding about 112 points. The s p 500 adding 1 with 18, 1896 is a wonderful level. Closing just shy of the 17 hub mark and the nasdaq up. For what to make of it all, lets get right to it with our panel. Joining me is our very own dominic chu, Nathan Bacharach and steve grasso will join us off the Trading Floor. Dom, did traders think this was coming . Its interesting because we talk about all the geopolitical risks with the referendums and the ukraine and the tensions with russia and everything else. The Economic Data has been maybe questionable. You couldnt figure out what was going on. Whats interesting about todays rally is that there has been so much skepticism overall about whats been happening with the market and all of a sudden you have a bit of a base, at least building with some of these stocks, the momentum names, the netflix and amazons. Maybe there are buyers, not fundamental im not saying that theres a fundamental case to boy the stocks what. Im hearing from traders is if you find a solid base for some of these names that have been beaten down so hard over the past few weeks that it might provide a little bit of support for the overall markets. And suddenly parts of this market that were hated. The biotechs and social media names. Declines of 20 or more. Look at the twitter. Look at the facebook, up 4. 5 and yelp up 4. Are you guys chasing these names . Im not chasing any of these names now. I have to tell you, kelly. Weve been saying buy on the dip for so long that any kind of a dip we kind of go, oh, thats a dip. Buy on that. So i dont know if well ever see a correction because theres so many people saying buy on a dip. I have to tell you though, i think all of this gets down to taking a look and going, you know what . I think i can forget all about the First Quarter. I think its history. I dont think whether its weather or low interest rates. It doesnt matter. All of a sudden im going to go shopping. Look at the number on the consumer. The consumer spent more money even though they earned less. Isnt that the american shopper that we all know and love . Come on. Isnt it, kate kell . Well, its interesting, kelly. I was just reading david costens Goldman Sachs research from friday making recommendations for the week ahead and they talked about how the mentality in the markets, especially looking back at march, was indiscriminate spending. Some thought the momentum downwards got to be too strong and wanted to go in the opposite direction and the russell that bill was talking about before the bell rang, this is an important indicator because a lot of hedge funds were using that as a hedge to short some of the long positions they had in the equities market and if we see a big crashup as we did on another day when i was on your show probably six weeks or so ago, that may be significant in terms of actually losses for some of these sophisticated money managers. And thats why steve grasso here off the floor. What are people saying about this market today . Obviously you touched on it in a bunch of different parts. If everything is rallying, you dont know i dont know. If you look at it that way. People want to see where the chips fall where the dust settles, and if all those names, i think what people got a little bit nervous about. Its easier for me to figure out valuation on exxon mobile and chevron to figure out where im paying too much than it is on a twitter and amazon, so if you can figure it out, then that means that theres a lid on this marketplace. So you actually need those names to pop through 1900. A whole mini correction and major that was taking place in some of these sectors. What did we mean here . People are keeping risk on the light side and they are actually looking for the trend. We saw a bold move today so there is some direction to the market, but i think people have been in some cases really kicked around by the market this year, and they are moving back to some extend to kind of see what develops. They want to see more than a few days. This is a market that is only seeing a 53 companies of the companies see the revenues rise. Its not as if were in an environment where were seeing lots of sales. The firstquarter Earnings Growth looks like it will be the strongest in three years. 8 , guys, and we were forecasting an outright decline. Yeah. About 1 maybe. Im not im not advocating that i think we pop through 1900. I think most people dont want to buy momo up here and most people dont want to buy value up here. This is the top basically in a lot of peoples minds, and if you look at the s p cash, we kiss that had old high. We didnt break through it. So theres definitely, dominic, a lack of conviction at these levels. Heres my question. Youve got the birds eye view from the floor. Im looking up at the boards. It says 635 million shares have changed hands here at the nyse. People all the time email me, tweet me and everything and say, you know what . This rally has nothing behind it, no conviction or volume behind it. Put volume in perspective. On a move like today, are you impressed with the number of shares that have changed hands on an up day like today . No. But volume has been a problem going back now for months, years. Theres been a volume or lack thereof of volume so you have to look at pricing, right, so if the price is there, it doesnt really matter quite frankly whether its on light volume or heavy volume. Heres what i wonder, too. You join us from cincinnati, nathan, and what are you hearing from the retail guy out there. Is there a sense that anything has changed, that the mentality has changed and people are putting more money to work in equities here . Theres great skepticism and that skepticism is born from many things. 80 of this stock on the floor is owned by 10 of the population so when you ask about the broad base of america, many people are just not participating. I think thats the first big mistake that came out of 2008. Secondly, i think things are great, and i think we feel that way, but things are great when you say 10 of the people, i just have to stop you there. What about Pension Funds and Retirement Funds . If you look at how many people do indeed own stocks or have exposure. Youre right. That number is much higher. That number is a lot higher. Go take a look at the average ball on the 401 k . Dont matter. All on a relative basis. Youre not going to feel very good about the economy moving forward. Your money doubles. That was two years of retirement at 50,000. Can i come back you guys in a way are arguing youre seeing healthy skepticism. Very healthy skepticism. You guys are arguing about volume in a manner of speaking. I wanted to come back to that point for a second, like the volume in terms of the number of bodies in the market directly or indirectly. Im not a market tech vision, but i just thought that dom made an interesting point. Are you really saying that volume doesnt matter so much when you look at the prices . I mean, it seems to me we tend to see really volatile pricing like to the downside or upside. You sold us on i think youre right. Kate kelly. Exactly. If you sold a stock today, do you care about when you lock in that profit about how many other people sold that stock . You dont, but if were talking about the amount of conviction in the market, whether theres anything behind these moves, as dom was just saying, i think volume does matter. I guess thats the only point im trying to make. The only reason why i bring this up. Again, volume bush you can make the argument one way or the other, but my point is stocks have been have been talked about as being underowned or invested for quite some time, ever since the depths of the financial crisis. I wonder to both steve and to nathans point whether or not people are actually going to get back into the market because they feel solid about the way that this market is moving or the way the economy is moving. I dont know if everybody on main street is going to want to get back into stocks just because we see a record high in the dow. I think the record high keeps people from wanting, steve, to participate, does it not . Totally and also to your point about investor confidence. Ever since flash crash, these are the things that the Investment Community still remembers. Institutions really have no idea what happened with flash crash, so there is a hesitation. I think weve seen checks in the 50day and checks at the 100day in the s p cash, probably due for a check of the 50day. To the downside . What will screw the most people up at the single time will be a check of 19 1 4 in the s p cash and a ratcheting right back down to 1700 . Nathan, a quick word here to wrap this up . My quick word would be when you take a look at the last time the market went down to 6 what, did the average investor do when you look at etiev fund flows, went in bonds, not stocks. They are not sold yet, and until they are i think thats where your broad base is going to come from. A lot of different points to illuminate what we saw in the markets. When we close at record highs, be sure to catch more of steve grasso when we come up with the rest of the fast money crew at 5 00 p. M. They will be asking the ceo of first energy why we need to stop focusing on renewable energy. Lets send it over to Bertha Coombs for a quick market flash. Check out directv, the stock spiking on a dow jones report that a deal for at t to buy the company could be struck within two weeks. It would a cash and stock deal, and it would be a premium to directvs current stock price. Directv currently trading up there. You can see surging up over 1 a share. Originally the talk about h been that this was a stock valued at nearly 40 billion. No word on a price. More activity for at t as we were talking about gogo earlier today. How many panic was there in washington during the start of the financial crisis . Were three days away from people not being able to access their atms. Former treasury secretary tim geithner telling our Andrew Ross Sorkin that it would have been the end of civilization as we know it if not for the bailouts and not everyone is buying it. More from tim geithner is coming up. Also, Morgan Stanley slashing its Growth Outlook for the tablet market. Find out whats behind the sales slowdown and what it means for apple and the other big players in this space, and the newest superstar in the nhl, take a look at this. Its none other than russian president Vladimir Putin. Not the nhl. Its russias night hockey league, that is, not our nhl. He just racked up six goals and five assists in one of their games . How did he do it . Remember, that beetles songs . He had a little help from his friends. Much more of this incredible video here on closing bell. Youre watching cnbc, first in business worldwide. Beautiful day in baltimore where most people probably know that geico could save them money on car insurance, right . You see the thing is geico, well, could help them save on boat insurance too. Hey okay. Im ready to come in now. Hello . Im trying my best. Seriously, im. Im serious. Request to come ashore. Geico. Saving people money on more than just car insurance. Welcome back. Timothy geithner is defending his decisions during the financial crisis. The former treasury secretary out with his new book. Its called stress test, and he sat down with our very own Andrew Ross Sorkin to discuss his tenure as treasury secretary. His handling of the financial crisis in 2008 was a controversial one and in the end he defended the Bank Bailouts. The basic problem with the financial crisis which i wrote in the book is there is the rare extreme, really unimaginable risk of panic, and in a panic like what we saw in the fall of 80, just remember what it was like then. We were hank paulsen says we were three days away from people not being able to access their atms. In that context as we saw in the fall of 08 you cant be indifferent to the risk that individual failure creates the risk of collapse of the system. What might have been. Not everyone believes it would have been the apocalypse if not for the Bank Bailouts. Joining us now with more, naomi prins, the author of all the president s bankers and its good to see you and dave zeshos is here on our panel. First of all, what was your reaction to the comments of tim geithner to Andrew Ross Sorkin and in this book . Thanks for having me on. It was the catastrophe that might have befallen the rest of the economy has been befalling it since the banks were bailed out. When tim geithner talks about atms being potentially three days away from freezing but Goldman Sachs didnt have atms for the general public and Morgan Stanley didnt have atms for the general public. The crisis that befell those institutions befell them because of a credit squeeze, a liquidity tightening that was the result of their own lack of confidence in their own securities and positions. And you dont believe that would have rippled through into some more fundamental problem with the capital and liquidity levels at all of the major u. S. Banks . I think what happened was that the bailout that was created, and it was the standpoint of buying preferred shares which is how the bailout was structured as well as a ton of infusions and loans from the federal reserve, from the Treasury Department and a bunch of backdoor and different subsidies for those institutions, it did fortify those institutions from having to make good on a lot of positions that they had, but the other way to have done, that which would have been much cheaper, would have been to create liquidity at the bottom of the system, not by security or through preferred shares at bottom of the system where you would have fortified the loans that are underlying the securities. Remember, we had half a trillion dollars guaranteed the Housing Loans . Guaranteed or helped to subsidize to help bring those up to par rather than buying for par the securities at the top of this pyramid where the bottom, were the small loans. Securities were 14 trillion, loans were half a trillion. Dave, do you agree that that would have been, a, a better approach, and, b, do you agree with the statement that geithner previously made that they were three days from seeing no cash available at major u. S. Atms . I think theres a lot of truth to what tim geithner said and i think we can all monday morning crisis. It was the greatest financial crisis of our lifetime and there were mistakes made, just like there would be in any quickacting period so i think its easy toe find criticism, but its also i think much more important to put a lot of give these guys a lot of kudos. They did a lot of things under stress. What about the cost of the event noemi is referencing . Is that how you would have done it in the fullness of what we know now . Now we know so much more and have the experience under our belt. I think shes absolutely right. We should have focused a lot more attention at the bottom end of the credit. The problem was people werent paying their mortgages and that rippled all the way up to the top, and if you could get to the problem of people not paying their mortgages, you could have stopped the ripple at the top. Its just a very hard problem to solve. Youve got, you know, millions of homeowners basically walking away or not being able to pay their mortgages. And a lot who were paying and who were this remind me. We should have Rick Santelli in the segment and what would you say . Youre bailing out parttime that shouldnt be bailed out. We were bailing out banks that shouldnt be bailed out. Nobody knew what a credit default swap until 2008 and we had 65 trillion of them and more than the worlds entire economy and after the fact, we should have helped the little guy, right, maybe if you were a democrat in the office at the time you might have said that, but it was so big and so pervasive. This was a house of cards where we werent trying to replace one little wobbly card. Every card was wobbling and we didnt know how to keep it all together. Kelly, the passion with which noemi criticizes some aspects of the bailouts and geithners tenure underscores how strongly people still feel about this crisis and the way it was handled or mishandled depending on your world view. I was at an event recently where geithner spoke to a group and i was shocked in a way at the harsh questioning he endured. And this is from a group that you would think would be sympathetic to him. And the fact that people are still angry not just about what has happened to homeowners and investors and the Lehman Brothers bankruptcy. And how upset Hank Greenberg is at aig, that they had to make the likes of Goldman Sachs whole. I covered this at the time and i distinctly remember hank paulsen being very nervous, depending on your world view, being a scaremonger saying the markets are going to fall 1,000 points on monday. This is when bear stearns was collapsing, six months before the lehman event. Anyway, theres a lot of interesting postgame analysis. The problem is not that we bailed out the bankers, but its very hard to get a home mortgage, so thats why it doesnt appear to be equal support or equal treatment as we come out the other end of this. I dont dispute what happened but i sure can see why people would say it didnt really help me. Quick last word to you, noemi. If you were saying the next time around were facing a crisis like this, because a lot of people have attacked this from a top level point of view and bank capital levels and so on. What is the way then to be more effectively target homeowners, again knowing the kind of outrage there would be at the time if those who had been whole on their mortgages and faced this problem felt like, well, why is this person getting a bailout that im not . First of a all, youve got to understand the securities that froze the system. They were about securities that created mortgages, so this isnt even just about helping or helping a small individual borrow versus a large institutional leveraged securities provider to the world. Thats part of it, but the other part of this is understanding how that financial pyramid works, and preventing it from happening again, disallowing the idea that this kind of leverage, these kind of derivatives and codependency across the big Bank Institutions in the future, the individuals at the fed, tim geithner at the new york fed and the Treasury Department, hank paulson, these people know how finance work and understand structuring and securitization and that was a larger part of this problem than simply the loans defaulting. It was the entire structure that was sitting on top of these loans. Im not sure people had any concept at the time of just how big this thing had gotten. Want to say one quick thing to a point nathan made. These bankers, and rightfully so, these bankers were bailed out because in some ways, would you argue, or some would argue, that they gave out these home loans too easily back in the day, and thats what ended up causing the crisis. Again no, ax to grind one way or the other. Thats what the nay sayers would say about the bailout. The bankers who gave the bad loans in the first place were the ones who got bailed out. And leveraged them a ton of times, thats the problem. Right. The impact is still being borne by the banks. Im not saying im crying for them, but look recently within the last couple of weeks news on b of a. They might be looking to 10 billion, 15 billion settlement with the Justice Department over these issues and jpmorgan paid a 13 billion setman. We see a complete remodeling of the business mix at banks. Yeah. The banks would make as well is their balanced sheets absorbed losses in hundreds of billions of dollars on the products that otherwise the u. S. Taxpayer should have had to absorb. Got to leave it there. Thank you and appreciate your perspective on this one to. Your original point, amazing that we dont have a clear sense today of what happened and who is to blame. Jim kraim e and tim geithner appearing at a new york city barnes noble to discuss tims new book stress test. That will be this wednesday evening. If you cant make it in person you can stream it live on cnbc. Com starting at 7 00 p. M. Eastern. I should mention i was in this barnes noble this morning and i said wait a minute. Anyway. Dont miss it. It will be fantastic event there in union square. Lets send it over to dominic for a quick im right here. I think Bertha Coombs has it. For a market flash. Dominic still hasnt mastered being in two places at once. Two earnings reports sending stocks in two different directions. Elizabeth arden, reported disastrous thirdquarter results losing 84 cents a share. The street was expecting the company to break even. Revenue came in 40 million shy. The company says its exploring strategic alternatives. One of the big stinkers was the fact that they didnt have any new fragrances to launch. The stock currently halted, expected to reopen right about 4 30 eastern right as they start their conference call. A different story for rachspace, which posted better than expected firstquarter earnings and stock up double digits now, more than 11. 5 . Back over to you, kelly. Big upward move keeping in the mood of that sector generally today. Thank you, bertha. It wasnt long ago many people thought tablets would make pcs go the way of the dinosaurs and now a troubling report on declines in the growth rate. What does this mean for Companies Like apple and samsung . Thats next and Donald Sterlings estranged wife cannot keep control of the l. A. Clippers if his ownership is terminated, but do nba rules really trump california marital laws . Well hear from a top divorce lawyer on this coming up. I make a lot of purchases for my business. And i get a lot in return with ink plus from chase 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 points. Travel, gift cards even cash back. And my rewards points wont expire. So you can make owning business even more rewarding. Ink from chase. So you can. Welcome back. Morgan stanley dramatically lowering its 2014 tablet growth forecast from 26 to just 12 . Why are tablet sales hitting such a speed bump already, and what does it mean for the Companies Involved . With us now, our guests to share their views. Welcome to you both. Lance, first to you. Let me put it this way is this something the industry was aware of, that tablet sales were slowing . They were 3 million off what they were the year before but they still sold 16 million ipads, dont know which kind so that scares everyone. Thats considered the leader even though worldwide they dont have the leadership position in overall market share for tablets. And apple shares were up to the tune of 1 . Colleen, why is that . There is growth other places in apple. The iphone 6 is expected to do very well, a lot of other products are expected to do really well. I think what were seeing here is that phones are getting bigger and better. Laptops are getting smaller and with better battery life and so the tablet, as we know it, is getting squeezed from 2010 when the ipad debut to 2013, the tablet was really the breakout star and now were seeing the tablet space go into bit of a more maintenance mode. I guess this will mean from the likes of verizon and at t and they do a nice margin business on people who have tablets because they dont have the telephone component to them. Right. Its a data rich product. Tablets are sort of a spectrum. She was saying we have the phone and 8 inch tablet. All kind of the same device at different sizes, and and no matter what, you know, by 2017, 87 of connected device sales are going to be tablet styled devices. People shouldnt suddenly go long on the old pcs, is that what youre saying . Nobody is buying desk tops, will still buy laptops. I come on the set and ive got my mac here because when i want to pound on keys because nothing says pound on a cos and they very convenient. I always carry my ipad. Mary poppins, what else have you got . Nathans totally cut the cord. Its all about star trek. This is a tricolder, going to beam people up, and its going to be about this size, thats where were headed. 35 of retail sales are taking place here because this is the only device people have. Do you think people will be like you where they have a laptop and they have a tablet . At what point do you get rid of the laptop . A commercial for apple, by the way, just saying. You know what . Im trying to go on an electronic diet and cut back, really am. But youre finding it hard to do. I think the tablet is going to go. The tablet is going to go . When i want to pound it will be the keyboard. Look at lances face. I have to second that, kelly. Go ahead, kate . Not much use for the tablet. I dont have a detachable keyboard, cant stand typing on the screen, whatever. My phone and a laptop, done. Cant buy a blue tooth keyboard . Are you saying were the exception and not the rule. Ill come back in three years and you will say lance, are you right. Tablets are 19 of apples revenue right now. Thats the only thing you need to say about tablets, not that big of a position. Iphones are about 56 of their revenue. The phonecisment that you cannot do without. Its the actually portable device that you need everywhere for everything. I absolutely agree with that about the phone being crucial, and then also the replenishment level on these things. The phone youll replace a lot more often and the laptop more often. Youll find a need for that more often than the tablet. The tablet is nice to have that you carry around. I do think thats true. Some of the replacement cycles on tablets have been slower, more like pcs which has caused many soft slowdown. Microsoft will come out with a surface mini next week. They dont think the market is dying out so it will keep growing. Fascinating how quickly the whole perspective on the issue has shifted. Im going home. Thanks, appreciate it. The economy is showing real signs of life. Economic growth picking up and unemployment down, almost near 6 and Consumer Confidence at a sixyear high so why are democrats reluctant to talk about all of this economic good news ahead of the mid terms . That discussion coming up, and russian president Vladimir Putin scoring six times in a hockey game featuring several former pros. Is he really that good, or is it just an attempt to show the world hes not a guy to be messed with . Thats in keeping with the theme, and thats ahead on closing bell. About speeds and feeds. Its all about latency. Its all about how fast does it run. I often sit with enterprises who ask me about how Mission Critical and hows the performance of the cloud. And i tell them, if you can maker gamers happy, you can make anybody happy. The numbers are impressive. Over 400,000 new private sector jobs. Making new york state number two in the nation in new private sector job creation. With 10 Regional Development strategies to fit your business needs. And now its even better because theyve introduced startup new york. With the state creating dozens of taxfree zones where businesses pay no taxes for ten years. Become the next business to discover the new new york. [ male announcer ] see if your business qualifies. Become the next business to discover the new new york. Tigers, both of you. Tigers . Dont be modest. I see how youve been investing. Setting long term goals. Diversifying. Dip you got our attention. We did . Of course. Youre type e well, i have been researching retirement strategies. Well thats what type e s do. Welcome home. Taking control of your retirement . E trade gives you the tools and resources to get it right. Are you type e . Welcome back. We start here with a quick market flash. Bertha coombs, whats happening . Elizabeth arden shares are just reopening. They are down double digits after reporting a huge thirdquarter loss of 84 cents a share. The street had been expecting the fragrance and Makeup Company to break even. Revenue also coming in 40 million below expectation. The company says it is exploring a strategic alternative which, of course, could include a sale. Taking a look right now. Shares are down just about 16. 5 . Kelly, not very pretty. Back to you. No, its not. Thank you, bertha. The dow and s p 500 meanwhile reaching alltime highs today, so lets head over to bob pisani for the big movers, the drivers of the action today. Bob . Stocks started up and stayed up, kelly, take a look. No selloff late in the day. S p 500, transports and the dow industrials all closing at historic highs right now. Now, key factor was stability in the most beaten up groups, number one internet and number two, biotech. Both of those up 3 . Can you smell or say short squeeze because i think thats a lot of what went on. Theres been fears that this weakness that weve seen in internet and biotech could infect the overall market and other parts of the s p 500, a lot of nay sayers, bank stocks, Home Builders and retail, they have been weak and banks, retailers had a good day and all this contagion idea has gotten quiet today. Another big factor is the interest rates. Tenyear yields. Yields have been up across the globe here today but when the yield is over 2. 6 recently on the ten yirk the stock market has tended to be much more stable. Thats exactly what happened today, and finally, kelly, news overseas. When shan is up 2 and usually that will fall through in the global market. There was talk maybe over in shanghai the Chinese Market would be more opened up. The mainland market to foreign investors, bombay. The last day of the elections going on, and the indications are that mr. Modi, a promarket proponent may be in the lead. Well get the final results of the indian election on may 16. How about better Economic News . Retail sales tomorrow, a lot of retail Economic Data this week. We get that. We could still stay at these historic highs. Kelly . Bob, thank you. Havent talked about the indian elections enough. They are significant and the talk of the globe and with markets hitting alltime highs again today, i wonder what in fact is driving users to cnbc. Com. Is it indian, markets generally here and how about that rachspace move after hours . Not india yet though big things planned for that. Its been mostly about the markets and this is great to juxtapose next to what bob was talking about with optimism coming into the markets and fears of contagion settling down. Jeff cox write a note from Piper Jaffrey and they are warning folks they think theres a stealth correction under way that will result in a steep slide in the s p. They think it can go all the way down to 1600. Whoa, thats the bad newsth good news right after that they think it will snap back up. One of the major draws for the readers. In the last hour acquiring 120 readers per minute and people are standing in and number two, obamacare is back and some states are rolling out what they have as premiums, in virginia 8 and in washington there was a decrease so that should get the obamacare debate going. My final one was in the money fun fact category. One out of ten americans dont carry cash anymore. Yeah. Doms nodding over here. Do you carry cash . Yeah. You probably shouldnt broadcast that fact. I shouldnt have even asked you. Thats okay. Ive got a black belt and all that, but i fall into the 78 that carry less than 50 so if you are going to mug me, im not really worth that much. Good to see you. Thanks very much. Republicans already control the house. Some believe they could take the senate in the november elections. Will the improvement economy hope the gops hopes of controlling capitol hill in november and why arent democrats touting the economy . And move over, wayne gretsky. Vladimir putin scores six goals. More on that straight ahead. Weekdays are for rising to the challenge. Theyre the days to take care of business. When possibilities become reality. With centurylink as your trusted partner, our visionary Cloud Infrastructure and Global Broadband network free you to focus on what matters. With Custom Communications solutions and responsive, dedicated support, we constantly evolve to meet your needs. Every day of the week. Centurylink® your link to whats next. Today is monday today, we greet you. Treat you. Care for you. Today, you can come to Cleveland Clinic for anything, everything or just to get that thing checked out. Big, small, and yes, the best heart care in the nation. Its here everyday, for everyone. Thats the power the power, thats the power of today. Cleveland clinic. Call today, for an appointment today. Welcome back. Its that time. Midterm elections six months away and most watchers have expected a gop route. Could a an improving economy changing the equations and if so why are democrats reluctant to tout the good news on the economic friend. Lets bring in sarah fagan, former white house political director under bush 43 and also with us, democratic strategist tara dow dell. Tara, first to you. There is better news on the economy. Do you expect that to be a bigger part of the democrats message going into the fall and if not why . I think youll hear the democrats talk about the economy but not to the extent that one would expect given a lot of the good Economic Data thats been coming out and i think the primary reason for that is a lot of voters are not feeling it. They see the market going up, but their wages have remained the same, and so if they are not personally impacted by the good news, then it doesnt seem very real to them, and the democrats are aware of this. I think whats on the side of the democrats though is they are offering a prescription to address stagnant wages, at least part of the prescription. Is this the minimum wage argument . Sarah, is that going to play with voteers . Is that going to get voters to turn out this fall in support of the dems who still i think are facing the potential losses, are they not . They are. Democrats are going to lose seats in the senate and the house. The question is how many, and the minimum wage as an argument is fine as part of a broader plan. Notwithstanding the policy which is not good policy, but when it is the entire platform of the democratic party, which it is today, its not enough for voters to get their arms around it as a vision for the country. Its just one piece of what should be a broader more robust economic plan. I i do agree with tara though. One of the challenges democrats face right now is they dont want to appear tone deaf. You have these good longterm trends in the economy, but short term, you know, people experiencing higher gas prices, their wages arent going up, tara is correct about that, so its a real challenge for them. Nathan, im not red or blue, im green about it comes to this discussion. The color of money, let me be clear on this. Just did a proprietary study of 1,000 people across the country and health care is now having the highest approval its ever had in terms of affordability, quality of care. That thing which i believe, that issue which i believe republicans were thought well kill them on this one will find out all of a sudden do you think democrats are going to run on the Health Care Issue instead of the economy issue . Are you seeing evidence that that might be one plank for the fall or is that deemed as too risky as well . All politics is local and something we have to keep in context and remember so if you look at some of these states, republican states where democrats hold senate seats, a lot of them, they are seeing a pushback because governors in those states, republican governors, have denied people federal funds for medicaid, denied working people federal funds for medicaid, so in those states youre seeing democrats starting to be more emboldened. They are pushing back on the issue because, again, health care is part its an economic issue for people. If you have to go to the emergency room i have a question for sara. You brought up a good point whether or not people on main street are feeling it or not feeling it. My question from a markets person, right, is at what point does the economy get to a point where you actually say things are Getting Better . At what point do the markets get to a point where main street can actually appreciate the fact that maybe hypothetically things are good in this country and reflect that in our political scene and in our voting kind of record . Dom, i would watch Consumer Confidence. That economic measure has most closely correlated its at a sixyear high. Well, longterm trend is okay, but if you look at the last, you know, since march, the present situation index has been dropping. It lost five point in the last month and when you see that kind of bumpy ride, particularly at this critical point when things start to bake in in an election cycle, i think that has been real problematic. Half the country earns 20 an hour or less, and wihichever party says ill show you how you can participate in the Economic System and make more than 20 an hour, thats who will win in the fall. You were right on the Health Care Issue. The reality is im a partner in a firm, we have 140 employees. We got our 27 Health Care Premium insurance increase today. 27 . And all 27 . All Small Businesses around the country are feeling this. Im in an exchange and my prices went up about 6 , sorry. Its painful, and as a Small Business owner, know, these are the kinds of things that people on main street are experiencing weekly, daily, you know, whether its higher gas prices, Higher Health care costs. Got to jump, but it sounds like this is going to be a mid terms that is about Health Care Policy to some extent. Not the economy despite the better momentum weve had. Thank you guys for now. Its hard to decide which is more interesting when it comes to the l. A. Clippers, the action off the court. Yesterday the home team fell behind 22 points and managed to come back and beat the Oklahoma City thunder, 10199. That tied the playoff series 22. Off the court, the tussle for the future of the team now has disgraced owner Donald Sterlings estranged wife staking claim to the team but nba says no way. Just ahead, the state of california could slam dunk the nbas ruling on that story next. Russian president Vladimir Putin also either a great hockey player or everyone else on the ice with him was just playing along. How else did he score six goals . Well show you the video and let you be the judge when we come back. But what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its 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. Even when we cross our ts and dot our is, we still run into problems. Thats why Liberty Mutual insurance offers accident forgiveness if you qualify, and new car replacement standard with our auto policies. So call Liberty Mutual today. And if you switch, you could save up to 423. Liberty mutual insurance. Responsibility. Whats your policy . Welcome back. The nba the trying to oust the owner Donald Sterling for his racist remarks. Now the league says his former wife will not have the interest to keep it. Rob. Kelly. Well, youre right. Shelly sterling speaking out in an interview with Barbara Walters saying she is a 50 owner of the clippers. This time has been owned by them as a couple since it was bought in 1981. She understanding why the nba would want to oust donald spellering, she did not make any such comments. The nba saying that there could only be one controlling owner of an nba team. According to the nba constitution. That controlling owner is Donald Sterling. And if Donald Sterlings ownership is terminated by the other owners which requires a 3 4 vote, that termination applies to all other owners associated with the team and that would include shelly cheryling. Thats the nbas position on it. What shelly cheryling may or may not do about it is another story. Donald sterling himself giving an interview to anderson cooper. He in a sense apologized for his comments although the apology was an odd apology. He sort of throws himself on the mercy of the other owners of the nba. Asks them to give him a second chance. By doing that, he alascknowledg they have the right to kick him out of the league. Joining us is california divorce attorney who has seen her fair share of california divorces and can tell us if marital law at all conflicts at all. Which mrs. Sterling would lose her share of the team. Is she going to lose the team. That depends on what the word is is. Generally you can fight over everything. Right now the dispute is whether she has an ownership outside of his. California law would only come into play if she has an ownership outside of the property interest through him. If she has a separate ownership thats not linked to his, yeah, perhaps, she can keep the clippers. If her only interest is that derived from his, once he loses it, she will no longer have a Community Property interest in it because he didnt have it. What do you think . Heres is my question. Having followed the story, there are so many moving parts. I guess the issues i struggle with are whether or not any league or any kind of Sports Organization can mandate certain policies that may supercede other types of rules of states or anywhere else. Is this a state where basically if youre a sports owner in california youre going to have to deal with more intricacies of sports owners in other states in the union. I think that could be one of the considerations. But in the end, whatever contract that he signed is going to govern his actions and the grievances. Its what he signed. Over and above California Law . Its a really interesting question that dom raises. Would that be the case in the nba or any bilateral contract supercede California Law. I think its any bilateral contract. Its whatever the parties agreed to when they entered into the contract. Thats going to be the trump card. Not any law is going to trump what you signed when you entered into the agreement. Have you dealt with examples where this has been the case . Have you seen this play out before. Yes. It plays out every day in marital agreements. If they agreed to it, the question is, if they agreed to it, is it enforceable. What the law is and what the parties agree what the law is. Here theyre going to be arguing over what the meaning of is is. Appreciate it. Putin wins again. Its a hockey again. The fix may have been in and that story is next. It starts with little things. Tiny changes in the brain. Little things, anyone can do. It steals your memories. Your independence. Insures support. A breakthrough. And sooner than youd like. Sooner than you think. You die from alzheimers disease. We cure alzheimers disease. Every little click, call, or donation adds up to something big. Alzheimers association. The brains behind saving yours. Thats keeping you from the healthcare you deserve. But if healthcare changes, if it becomes simpler. If frustration and paperwork decrease. If grandparents get to live at home instead of in a home. The gap begins to close. So lets simplify things. Lets close the gap between people and care. Drivers want to go further with their electrical vehicles. But you cant take a trip from lisbon to stockholm if you cant plan and recharge along the way. The European Commission is using cloud to make this possible. Creating a single charging and Billing Network across 28 countries. So drivers can travel as far as they want to go and when they want to go. So russian president Vladimir Putin took his talents to the ice. Dubbed the nhl. Managed to score in six goals and five assists. I wonder if the panel thinks the other team gave it their all. Dom . I have no comment. I think that maybe with six goals, i mean, that guy is obviously the most skilled player on the ice maybe, i guess. I want to know if dave sees any parallels here . Its a guy who is outside our jurisdiction. Yeah. Its a guy who set up a system that works well for him. We seen it play out really well for him at home. Hes coming out of this much more popular than the leaders who have criticized him around the world. Hes redefining the word penalty box. Who has got the guts to hip check the president of russia . Or that he has a tens of billions of dollar fortune secreted away or he has connections to oil companies. By the way, there are important headlines that even as we are heading into the close with the markets up strongly, this concern is demanding payment from ukraine and whatever is going to play out with the election sunday, does any of this shake the optimism in the markets . Look, the market has given up on this. This geopolitical story has lost its teeth. The markets are the biggest stick that can be wielded off. The gas problem is going to cut off home heat or stove heat to many, many peoples homes because of political issues. Its pretty scarey. I know. Well leave it on a scarey note for now. Fast money coming up in just a few seconds. Melissa lee, what have you got. We got the former seaoa sear executive. Well quiz him on what he sees. Over to you guys. Fast money starts right now. Live from the Nasdaq Market live from times square. Our traders are steve, brian, karen and guy. And we have got a ceo who says enough with all this talk about wind and solar energy. Its putting the u. S. Power business at risk. First, to our top store. The s p and dow closing at all time highs. The nasdaq making a comeback. Up near 2 . Internet stocks and biotechs seeing a nice rebound. Like microsoft, ibm also powering higher