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 duri