markets overnight. we're off the low, down 56 points. we're following general motors. take a look at the stock. it's lower as a recall controversy grows. new reports that the government ignored warnings as early as 2007 about a potentially fatal problem with ignition switches. shares down almost 2%. we will be speaking with the parents of the young woman killed in 2010, and they want answers from the government, bill, and from the company. >> absolutely. and the mystery of that missing malaysian airliner continues. it's unbelievable. a story that's gripping much of the world. we will speak with experts as they try to grapple with how you search for a missing plane in such a vast body of water. the technology is amazing, but it's still a needle in a haystack kind of a story. stick around for the latest on that crazy, crazy story coming up. in the meantime, an important hour as we head towards the close. the dow is negative, but well off the lows. it's off about 60 points. the nasdaq down about 0.2%, about 8 points. the interesting one to watch is the s&p 500. that broad market gauge is only down by about 3.5 points right now. bill, if we turn positive at all, remember, we closed at a record high on friday. believe it or not, despite low breadth in this market and particular concerns in the financials with the downgrade from wells today, we could yet close higher. let's talk about today's market action, where we go from here as we celebrate five years of a bull market. joining our exchange, anastasia, jeff taylor, ron mullencamp. mark tepper, and our own rick santelli. and, folks, i begin our conversation quoting from today's edition of ""the financial times" which quotes seth coll sethklarman. he says any time in which the s&p 500 jumps 32% while corporate earnings barely increase should be cause for concern, not further exuberance. he says eventually buy the dips will be replaced with what was i thinking? ron mullencamp, i feel the need to go to you. you're a value investor like seth klarman. >> what seth is saying will be true eventually, but the assumption that the market going up 30% when the economy didn't do all that much assumes it was fairly priced a year ago. frankly, we think a year ago it was discounting a bit higher inflation. inflation has come in. it's about 1.7%. frankly, we think it's fairly priced for about a 2% to 2.25% inflation. there's all kinds of things out there that can hit it. you know the litany as well as i do, and the bears always have better specific arguments, but the ultimate bull argument is that this country and this economy tends to muddle through. we're no longer finding things cheap, but we're not running for the hills just yet either. >> seth has been skeptical on what's going on in markets for some time. he's called it the hostess twinkle market saying it's totally artificial ingredients. is this totally artificial or is it not? is there something fundamental whether it's on the corporate earnings side or whether it's with regard to other u.s. demographic factors, et cetera, is there something fundamental here for a reason to have exposure to this market long term? >> absolutely. i mean, we're watching corporate earnings finally starting to grow again. now, over the course of the past several years, all we've seen is really a lot of multiple expansion and no earnings growth, but we are seeing the earnings growth start to pick back up. we actually think this market has another 2 1/2 to 3 years of bull left in it. we really do think that, you know, until there's been at least a few fed interest rate hikes, we can actually maintain and overweight equity bias really on autopilot. the last two bull markets came to an end when the ten-year treasury yield began to exceed the nominal gdp growth rate. with the current yield at 2.8%, we have probably 1.5% to 2% of wiggle room to go and it looks like the fed is not going to raise interest rates until the end of 2015, probably not going to reach that problem zone until end of 2016, 2017. >> with all due respect, mark, when i hear autopilot, i get sweaty palms when it comes to investing. seth klarman says he feels investors are underplaying risk and not really prepared for the end to the central bank's reversing its five-year easy money policy. autopilot, really? >> yeah, yeah. i mean, you know, we're long-term investors. we do think -- we're making our decisions based on a three to five-year outlook. when we look out three to five years, there's some great opportunity out there. the pe ratio right now is around 15. that's within the historical average range. so we're really not overly concerned about how the market is currently priced. >> rick santelli, if mark is right, and we have 2 1/2 or 3 years to go, that means this bull market historically speaking will go down as the strongest if not second -- second strongest, maybe the strongest, longer than 1990 to 2000. how unlikely -- who would have thought we'd be here now? is it possible we're only halfway through? >> oh, i think it's possible, but i also think that it's the biggest risk in the world. yes, it will be maybe have a ways to go and it could be the biggest bull market ever, but it's the biggest bull market with the biggest ample helping from central banks, ours, a lot of central banks, and i think that really merits looking into because to me there's two areas i pay attention to now, and one is the u.s. equity markets. but now i would think when we crossed 139 in the euro versus the dollar and the euro was strengthening against a variety of currencies, that's really taking something out of the german stock market. even though all big developed economies' stock markets aren't correlating 100%, i can't imagine should the german stock market start to fall any more that we wouldn't see a sympathetic move in global equity markets. i think you really want to pay attention to the currency markets, whether it's yuan or the euro. i think this is going to come back and haunt many of the central banks, and it's no coincidence that as the german stock market goes down, all of a sudden some of the tough german finance ministers are actually thinking maybe some american-style qe would be in order. they're looking to weaken their currency. >> talking about the other options that they have. so true. >> that prescription is going around these days. anastasia, what about -- i'll go back to seth klarman's premise that we really are taking for granted the impact the fed policy over the next few years is going to have on the financial markets, and we're just expecting it to continue on until they actually begin the process of raising interest rates. are we being too complacent here do you think? >> well, i think there's some reasons to remain optimistic because that's right. as long as the fed is easy, there's a runway here for acceleration for risky assets. i wouldn't necessarily say that we're completely on autopilot because amidst the upward strength we need to be careful about picking up the dips because you never know whether it's ukraine, russia, venezuela, whether it's china that is causing the pullback and assessing the pullback. i think buying the dips approach does absolutely make sense as long as the fed is easy. so the question is now that we are almost at 6.5% unemployment rate, how long will the fed remain easy? and if you look at their expectations of how much they will actually hike that rate, there's no question of when. when is probably 2015, but there's a question of how much. there's a great dispersion there. >> there's a lot more detail we're getting courtesy of jon hilsenrath of what this exit strategy might look like. we heard from the fed in 2011 that it would be letting the current holdings of mortgage backed securities sell off. well now that may not be the case at all. jeff taylor, we're starting to get a sense instead it will be about maybe using some of these newer tools, reverse repos, trying to use the price of that interest rate that it uses to lend to banks to affect the price throughout the economy and, in other words, this won't necessarily be telegraphed as far ahead of time unless the fed wants to tell us so. >> totally agreed. if you look right now, 40% of last month's home sales were cash. that tells us we're driven in an investor market. if we look over the next 6 to 12 months, we want to get to a consumer driven market. that's going to come by jobs creation, by people being able to afford 10%, 15% down on housing, and that's going to get to a more even flow. >> i'm not obsessed with this seth klarman thing -- >> i think you are a little bit. >> i think we all ignore the profit until we don't ignore the profit anymore. one other point and this speaks to you as well since you're one of the more famous value investors out there. he's looking at the explosion of stocks like the netflixs and the teslas and the twitters and those things which while they're not the rule, they are sort of the exception now, but they do exist in this market environment and which he says is symptomatic of a market that's becoming frothy right now. >> well, they are not the rule. it is a fairly short list, and, yes, there's the outliers. the public is getting scared back into the markets, but we've seen interest rates neutralize, long interest rates are about where we think they should be given inflation. the normal thing for the economy is to grow but the economy is not growing. everybody talks about employment picking up, but as long as there's as much uncertainty on tacks and regulations, there's no incentive for companies to go out and hire. so i think we're still in this very slow growth kind of thing, 2% to 2.5% -- >> where do you see value right now? >> longer term -- if you want me to get bullish, we can talk about shale gas, talk about biotech. last year we did a seminar on shale gas and actually we put the content of that into a booklet if anybody wants, but we are setting up for predicting the future is a pretty difficult thing to do. but, manufacturing in the united states means advanced technology. we learned that technology allows us to be craft oriented. no one's losing their job. there's no beer robot that has suddenly chased them out. the technology is actually creating new jobs. siemens designed and built the right tools and resources to get the job done. we know we're not the center of your life, but we'll do our best to help you connect to what is. bold. one person called him a patriot. they said, listen, he put himself on the line. at the very least he opened up a new conversation. guys, back to you. >> josh, thanks very much. for more on how attendees reacted to edward snowden's interview, kara swisher joins us with her take. and, kara, you know, what did you think about, first of all, the premise of having snowden involved, the substance of what he had to say, and how people responded? >> i think it was great that they had him. this is south by southwest where people are supposed to speak their mind and talk about issues, and he has a lot to say and he did say a lot actually. it was sort of -- there was a book end. they julian assange who is also on the run and in the ecuadorian embassy and snowden from russia using google hangouts i might add through seven proxies or something like that. i think it was perfect for this particular festival. >> so politics aside, we want to focus on, at least i do, the technology and what they had to say about security issues and all of that. have we taken it too far with the surveillance programs out there? >> well, he thinks so. he made a very persuasive case as he often does as did julian assange that the government is conducting war on its citizens. i think assange called it a military kind of attack on its citizens and interestingly with the constitution as a backdrop, snowden was talking about here is his quote which i thought was interesting, regardless of what's happening to me, i took an oath to defend the u.s. constitution and i saw the constitution being violated on a massive scale, and i did what i had to do. that got a lot of applause. so he was trying to wrap himself up -- >> how do you reverse that kind of ability of surveillance that exists? >> you don't. >> could we can't go back? >> you don't. no, they talked a lot about encryption and increasing encryption by the public and private tech companies and increasing encryption to prevent against this and also hackers, not just the government spying but also hackers and other incursions. there was a lot of talk about n encryption and what should be happening on that level. he felt there was a lot more to happen in the encryption because of the anger that revelations that snowden revealed in these documents. >> i wonder if part of the premise of bringing snowden in front of this tech crowd isn't to keep them abreast of what exactly the nsa is up to. these revelations hit that community so hard and it took a lot of them it seemed by surprise. were there any further disclosur disclosures? have there been any further disclosures lately that you think have taken this community by surprise? >> oh, i think it's ongoing. there's more documents to come. i think that's what he was intimating when he was talking. there's more to come and there's been more every week i think as these documents dribble out. what i think is interesting is that south by southwest -- it's not silly but there's all these crazy apps and four square launched here and twitter launched here, very serious tone. there is no breakout crazy dating app. it was assange and snowden dominated the beginning and end of this interactive part. it's a much more serious tone. it was a different kind of south by southwest. >> it is south by southwest though, yeah. thanks. >> yeah, it is, they're still crazy. absolutely. thanks. >> see you later. >> we got to keep austin weird, right? that's what we hope. heading into the close, we've got about 40 minutes. the dow is off 60 points. that's half the lows of the day. the s&p 500 has weakened by five points and that shu giould givea better gauge as to whether there's broader weakness. >> some way to celebrate the fifth anniversary of the bull market which is not exactly happening today. the individual investor still hasn't totally bought back into this market. jane wells explains that part of the story coming up, and then legendary investor jack bogle will join us with his comments. also, one analyst slashing his pry target on dreamworks animation after call building peabody and sherman just another dog for the film studio. details later on that call coming up on "the closing bell." in my world, wall isn't a street... ...return on investment isn't the only return i'm looking forward to... for some, every dollar is earned with sweat, sacrifice, courage. which is why usaa is honored to help our members with everything from investing for retirement to saving for college. our commitment to current and former military members and their families is without equal. no two people have the same financial goals. pnc investments works with you to understand yours and helps plan for your retirement. talk to a pnc investments financial advisor today. ♪ stocks may be down today but check out this chart of the s&p 500 up more than 170% since the start of the bull run fi five years ago. >> are retail investors all in? jane wells is taking a look at what -- where have they been, jane? >> well, a lot of them have been looking for jobs, bill, not to make a joke out of it. to quote the chief strategist for td ameritrade, there are few people saying they have to be all in on the market. looking back, he says the percentage of cash and client accounts which usually averages 16%, shot up to 23% by march of 2009. it has since come back down but despite, as kelly pointed out, over 170% increase from the bottom of the s&p, no one can forget how scared they were five years ago. >> well, you know, i lost 50%, but, you know, you stay the course and keep investing. >> the whole thing is that nobody knew where the bottom was, you know, and every job, you go to work and people were getting laid off left and right. that was the worst part was that the stock market affected people's jobs, not just people's portfolio. >> people who loves jobs and houses often had to cash out their investments to pay bills and have not been able to enjoy the bull market and what a market it has been. look how these five stocks have improved in five years. apple, up over 500%. disney up over 400%. fidelity tells us while two out of three investors they surveyed were scared or confused five years ago, today more than half are confident and feel better prepared and 42% have both increased their contributions to retirement plans and to their emergency funds just in case. bill and kelly? >> jane, thanks very much. more now on the read of the retail investor right now. >> yes, probably no one better to ask than vanguard founder jack bogle who is often known as the godfather of those index funds and joins us now. jack, it is great to see you. >> welcome back, mr. b. >> is there any truth to the fact -- >> great to be with you both. >> -- that when retail investors start to get involved is when we should get worried or is it an important plank of any bull market? >> at the depends on the time period. in january, for example, mutual fund investors, and that's probably the best example we have of the retail investor, actually took money out of u.s. stocks. they put some in to international stocks, probably emerging markets, which i look at as being a more speculative sector of the market. so i don't see big cash flows. i haven't seen the february data yet. but i don't see big cash flows pouring into equities through mutual funds, and i think the investor maybe is better balanced than we all think he is. and, yeah, this is risky territory for the market. i'd say something very strong about seth klarman, and that is he's a heck of a lot smarter than i have. i have been around for a long time -- >> but your company -- he manages $27 billion, but vanguard's $2 trillion now. so you can match -- >> $2.5 trillion, bill. >> but who is counting. >> yeah, right, exactly. so are you saying that the little guy who has avoided this market for the last five years after a five-year bull market that has seen these stellar gains s this the wrong time to think about getting back into the market? >> i just don't think the investor has any business either getting in or getting out under almost all circumstances. they shouldn't have gotten out, some did, quite a few did when the market went low, but if you look at the fundamentals, bill, one thing that's quite striking is we had once in basically 80-year time period cut in dividends. people forget about the divid d dividend. i have always thought it was very important, as you know. and the dividend on the s&p went from $28 to $22, and now it's back to $35 i think is the number. so the dividend is up -- actually the number is correct here. the dividend is up 25%. the market is up 25%. operating earnings are up 25% from 2007. so i don't see the alarm. and the problem with men like seth and, again, a brilliant man, is if you follow his advice, you hear what he's saying and it's going to be thoughtful and wise, is will he call you and tell you when it's time to get back in? and, you know, he's a busy fellow. that's probably not likely, and so we all sit here knowing there's a bad day coming up out there somewhere when the tapering ends, the buying ends, the interest rates start to go back to normal levels and the government has depressed them seriously, and that's been a big factor in valuing the bond market and the stock market, and nobody knows when that day, great day of judgment, bill, is coming, but we all ought to be aware that holding all stocks, even now, is probably a dangerous game, and some kind of bonds, some ballast despite the lousy interest rates, forgive me, despite the depressed interest rates, should be part of every -- almost every investor's portfolio. >> your argument is basically get involved, make sure it's diversified, you're not just in equities, but it's important i think as well to reflect on this cycle. and as people are taking stock of the fact that we're now in one of the longest bull markets in history, if it does have some room to go based on, you know, when the fed begins to tighten and the fact that recession doesn't appear to be right around the corner and all of that, what would it mean to you if all of a sudden it turns out like we're in a bull market that could rival the expansion we had from the 1990-2000 period? does it speak to some of the risks building up in the system? >> i look at it in a little different way, and let me see if i can explain it this way. the stock market is often very misleading. sometimes too high, sometimes too low. it moves in fits and starts. what does not move in fits and starts is what the stock market enables you to do, which is own corporate america, let's put it in that simple way, and corporate america, we have a very good idea, will grow about as fast as nominal gnp, that's like 5%. the dividend yield is 2%. you should be looking for a long term return, long, long-term return of around 7%. that means your money will double in ten years nominally. so to try and guess when to get in and when to get out, i think honestly is a fool's errand. stay in unless the circumstances get like they were in 2000. that was a real bubble, no question about that. i don't see that now. but anybody that goes into any year without an awareness that the stock market could easily drop at any point, let me say for the fun of it, 20%, 25%, that can happen. and it can happen out of the blue, and it's better to be psychologically prepared for it, financially prepared for it than to think that the skies are going to be clear forever. they're never clear forever for heaven's sake. >> never known a period in market history when it was evident. $2.5 trillion, vanguard's now number one by far in the mutual fund business. is it too big to fail now? should the government allow a company like vanguard to manage that kind of money these days? >> well, that's a multifaceted question. no, we're not too big to fail because failure comes when you've got a lot of borrowed money, and we don't have a penny of borrowed money here. if the stock market goes down, it goes down. and if people take their money out, they get their money out. if they put it in, they get their money in. there's really not such a thing as financial failure here. however, i think it is fair to say, to concede, that the broader point that vanguard is a systematically important financial institution is just simply undeniable, and we own 5% of just about every company in america with a few of our competitors and we probably own together 20%. mutual funds as a group own 35%. so that's a systematically important financial institution because it controls corporate america and, as everybody i think knows, doesn't seem to feel like doing much about it. and to me that's more important than the financial side because if you've got no debt, you know, you have no people pounding on your front door. >> you don't invest on margin at all at vanguard? >> we once had a fund that did. our experience was such that we have never done that again. ie, it didn't work. >> burnt once and you learn the lesson right away. always good to see you, jack. >> you learn from your experience. >> yes, you do. >> it's a great teacher. >> thank you so much for your perspective this afternoon. >> always fun to be with you both. >> see you later. >> jack bogle of vanguard. >> 5% of every company? >> think about the fact -- >> that is unbelievable. >> mutual funds which is kind of dormant money owns 35% of corporate america. if you want to know where the agitation for deploying that cash or what have you may ultimately come from, watch that space. >> absolutely. that's for sure. where were we? we're heading toward the close. 30 minutes left in the trading session with the dow down 53 points right now. doesn't look like we're going to get an all-time high on the s&p today. >> not today. search crews still have found no sign of the missing malaysia airlines flight. we'll have the latest do developments. plus, we'll hear from an expert just how hard it is to locate a plane at sea. we'll be right back. opportunities aren't always obvious. sometimes they just drop in. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. welcome back. with stocks trying to make a bit of a comeback into the close, the dow is only off about 40 points. the s&p only about 2, bill, so we're still in record territory watch if that index moves more positive, and if you're wondering why the dow is weaker today, it is on weakness in boeing shares. a little bit of nike weighing on that index as well. >> boeing has been down 2.5% today in part because of the malaysian airlines mystery. the search intensifying for that plane that's been missing for nearly three days. we have the latest. >> reporter: really has been a difficult day here. in this room they have officials coming in to brief journalists every four hours. they haven't had anything really to update us on. every possible sighting has turned out to not be evidence of what happened to this aircraft. sighting of a potential life raft, sighting it was thought at one point of oil off the coast of vietnam. that was tested. that turned out not to be aircraft related, and so not just the journalists waiting here but the families who are -- have been here at the airport where we are waiting for news ever since this aircraft disappeared are left just waiting and hoping. they're saying this is still a search and rescue operation, and there is a coalition of nations searching the vast ocean off the coast here, including ships and aircraft and various vessels from all around the world, but so far even though they are now extending where they are looking, so far they have not found anything, any clue as to what happened here. back to you. >> in an area as vast as this search is, how do you go about it and what kind of technology is used? >> let's bring in former ntsb investigate greg five. thanks for joining us. they're employing everything they've got to try to find this thing. is it just going to be like the air france flight of a few years ago, just have to wait those whatever number of days for the things to start to surface in the ocean wherever it is? >> if that, in fact, is the case, bill, if this airplane has gone into the water, it will then take somebody, you know, either the search party or a moving vessel through that area to find the wreckage. but really because there is no wreckage, at least on the sea surface right now, it's highly probable this airplane could be inland somewhere in a jungle environment. >> greg, that's interesting. i mean, i guess you have to just look at the size of the area from which the plane disappeared which i have heard plenty of people around here saying how can it be you can't pinpoint in any given second where a jet is, where an aircraft is? why is it that there seems to be so much mystery with regard to exactly when and where this plane disappeared from the skies? >> kelly, we typically use radar to track the movement of the airplane, but there are parts of the world where radar coverage is scant, if even existing. so they require pilots to make mandatory reports to air-traffic controllers to track their progress in lieu of radar coverage. the problem is we don't have the fidelity in the radar data that is available to really pinpoint where this airplane went. >> if it went down over land though, wouldn't it be easier to track and find the ping from the jet than it would be if it's presumably at the bottom of the indian ocean somewhere where the depths mean we can't hear it right now? >> bill, there's some confusion. the pingers that are actually on the cockpit voice recorder and the flight data recorder are water activated. if the airplane crashes in the water and those boxes are relatively intact and the battery is still attached to the unit, then they will activate. there is an emergency locater transmitter which is separate from the cockpit voice recorder flight data recorder that will activate with a 5g impact or greater, but if you have a high speed impact and that box is destroyed, you will not get that elt signal. >> and, greg, going back to the point about radar technology, why is it there are these gaps? is that an issue of funding? is that an issue of different countries or regions being involved? is that something that you think after this kind of incident will be changed or addressed? >> i think that they're going to have to address this, kelly. i mean, we do have spots -- now, when you're looking at vast expanses like the pacific ocean and the atlantic ocean, you'd have to have radar sites strategically placed out in the middle of the ocean to be able to have that continuous coverage. the system has worked pretty well, but i think the debate and the discussion is going to start focusing on whether we need to have realtime gps tracking. we have that with tractor trailers and cabs. >> right. yeah, we have that with the most my nut parinute parts of our transportation system. why not for jet planes? >> it's because we live in a world, in an aviation world where we have always had airplanes in re daradar coverag. >> i have to know, you're an experience investigator. presumably you've investigated many a crash. what's your gut tell you? this is a highly reliable plane built by boeing, and it just disappeared. what happened do you think? >> well, bill, it's hard -- we don't have a lot -- >> of course, exactly. what little we know right now. >> but if you look at it, you know, you have to look at the most likely scenario, and if you look at the helios airlines 737 where the crew and the passengers became incapacitated due to hypoxia, you look at a payne stewart type accident where the airplane was still flyable and continued to fly for several hundred miles before it crashed, we could have a scenario where something happened at 35,000 feet, rendered the crew and passengers incapacitated, and the airplane flew in some direction until something either knocked it out of normal flight or the airplane ran out of gas somewhere and we just haven't found it. >> greg, thank you so much for your insight. again, a tragic story over the weekend. we really appreciate it. >> terrible. >> you're welcome. we've got about 15 minutes to go into the close. the dow is off 42 points. the s&p only 2 points. bill, i just got to say for the cost of search and recovery and how important it is to our national -- international transportation system, with not invest in gps tech following for these snashth. >> maybe they will now. it takes something like this for that to happen. goldman sachs warning that stocks with super high growth expect medicatioations may be a your portfolio. seema mody names some names. brick and mortar retailers struggling during this holiday season and after. so why is the mall of america in minnesota, the nation's second largest shopping mall, planning to get much bigger? we'll hear from one of the mall's top executives coming up on "the closing bell." tall the building is, or how ornate the halls are. it doesn't matter if there are granite statues, or big mahogany desks. when working with an investment firm, what's really important is whether the people behind the desks actually stand behind what they say. introducing the schwab accountability guarantee. if you're not happy with one of our participating investment advisory services, we'll refund your program fee from the previous quarter. it's no guarantee against loss and other fees and expenses may still apply. chuck vo: standing by your word, that's what matters the most. if yand you're talking toevere rheuyour rheumatologistike me, about a biologic... this is humira. this is humira helping to relieve my pain. this is humira helping me lay the groundwork. this is humira helping to protect my joints from further damage. doctors have been prescribing humira for ten years. humira works by targeting and helping to block a specific source of inflammation that contributes to ra symptoms. humira is proven to help relieve pain and stop further joint damage in many adults. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common. tell your doctor if you have had tb, hepatitis b, are prone to infections, or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. take the next step. talk to your doctor. this is humira at work. welcome back. the s&p 500 trying to turn positive here within about a point of doing so as we have this fifth anniversary today of the bull market rally, bill. >> courtney reagan breaks down today's big movers for us. >> it's a decidedly negative day but not every stock in the component index is lower. fmc corp one of the leaders. investors are applauding the announcement to split into two separate publicly traded companies. one focused on al agricultural, health, and nutrition. biogen and amgen among the strongest movers. shares of dreamworks slipping lower. cowan issuing a report saying the studios new movie mr. peabody and sherman is turning out to be just another laug. lowering estimates not just for this film but future films and cutting the price target on shares as well. >> i didn't want to say that to jeffrey katzenberger recently but we talked about that. i didn't think that movie would do very well. who remembers mr. peabody and sherman except me? >> i said, what's peabody? >> makes me better about not understanding a reference. i take it you didn't see the movie. >> no. >> we are approaching the close and the question is whether the s&p will turn positive here. we'll keep a close eye on it for you. it's down less than a point. the dow is off 28 after being down more than 100 at the lows. >> we could be positive on the close here. might get an all-time high on the s&p. stay tuned for that. jim cramer has been skeptical about this market lately. coming up, jim tells us where he sees stocks heading next as this bull market rally celebrates its fifth anniversary. plus y is he on an oil rig right now? we'll tell us because he's coming to us live from said oil rig. back in a moment. weekdays are for rising to the challenge. they're 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 what's next. 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(announcer) ranked highest in investor satisfaction with self-directed services by j.d. power and associates. welcome back. about eight minutes left in the trading session here. the dow is down 26, well off the lows of the session, and, boy, the s&p, we could get an all-time high if it finishes positive. we're down a quarter point right now. joining me to talk about the markets, j.j. from ameritrade and john from oppenheimer. good to see you both. here we are five years from the low. do you think about taking profits? is it full steam ahead? >> bill, the way i look at it is we hold course. we stay the course on this market. perhaps take some profits from time to time and outsized gains, but we have enjoyed the ride, particularly since the fall of 2009. so we'll stick to the order. >> assuming you were in this market to enjoy the ride, j.j., i mean, is it a time to think about getting in now if you haven't been in this market? >> i think you can but i think john brings up something interesting. we released our investor sentiment index today, based on people who made a trade last month. it's an all time high. one thing that's interesting, people took profits in names like chipotle that had 52-week highs. and green mountain coffee. very interesting that way. if you look at the buy side, they bought names like coca-cola and ge that suffered some volatility. people aren't as afraid as they once were of volatility. >> but more disciplined likely with some rotation. people have a sense for it this time around. >> but we still have the high flighters like a tesla and netflix that has everybody's imagination. facebook hit an all time high. >> you have to have a dream. >> is that a dream or is it froth? >> i would think it's more -- still more of a dream and with facebook there's plenty of reality behind it. the mobility of facebook looks like a much longer-term thing and the commitment of many corporations to advertising on it. >> but i'd say one of the things, too, is we're seeing people buying names like chevron, procter & gamble. there's no sexiness. >> unless you believe the long-term prospects for the energy -- the role energy will play in the economy over the next ten years. >> and that's great, but, again, i think one of the differences is you're not seeing people coming in as we have seen in some of these things where the sexy name is where everybody is going. obviously some of them, as you mentioned tesla, have done very well but it's encouraging to see some of the stalwarts also doing well because thane people are being smarter about their investments. >> good to see you both. we'll come back with a closing countdown for this monday with the dow down about 30 points. after the bell, former apple ceo john scully is with us to make a big bet on the smartphone market. you may be surprised though to find out where he'll be selling those smartphones. he'll tell us about his new endeavor coming up later. is he taking on his former company, by the way? you'll find out. you're watching cnbc, first in business worldwide. ♪ for tapping into a wealth of experience. ♪ for access to one of the top wealth management firms in the country. ♪ for a team of financial professionals who provide customized solutions. for all of your wealth management and retirement goals, discover how pnc wealth management can help you achieve. visit pnc.com/wealthsolutions to find out more. ido more with less with buless energy. hp is helping ups do just that. soon, the world's most intelligent servers, designed by hp, will give ups over twice the performance, using forty percent less energy. multiply that across over a thousand locations, and they'll provide the same benefit to the environment as over 60,000 trees. that's a trend we can all get behind. save you fifteen percent or more on car insurance.ould yep, everybody knows that. well, did you know the ancient pyramids were actually a mistake? uh-oh. geico. fifteen minutes could save you fifteen percent or more on car insurance. ♪ ♪ ♪ [ tires screech ] chewley's finds itself in a sticky situation today after recalling its new gum. [ male announcer ] stick it to the market before you get stuck. get the most extensive charting wherever you are with the mobile trader app from td ameritrade. welcome back. about 2:30 left in the trading session here. the dow at its low. here is today's trading session, down 118 points on the open this morning following the weakness in the asian markets overnight. boeing was the weakest of the links today for the dow, maker of the jet that disappeared, the malaysian airlines jet. keep that in mind. sideways the rest of the day and we have come back in the last hour, down 39 points. the s&p is down 1.5 points. needs to be positive for an all-time high. maybe not now but it looked like it could have done it ten minutes ago. by the way, not everything was negative today. some technology stocks did pretty well, twitter, new price target, at least one house saying $72 for twitter. it's up to $53.87. i mentioned facebook hitting an all-time high. it's up 3% right now, and apple, even big apple, was higher today even though the nasdaq overall was lower today, bob pisani. >> we had some battery stocks, plug was up notably. >> up 31%. that fuel cell niche is really very hot right now. >> the big story is it china. biggest drop in exports in 4 1/2 years in china. biggest trade deficit, a trade deficit. who would have thought in china you have a trade deficit? year expo they're exporting like crazy. the problem is slower china growth. if you take china out of it, global growth becomes a lot harder. that impacts stock valuations. that's why we're seeing -- >> and the german stock market is suffering right now as well and that's the growth engine for europe. >> dax is down 3% in the last two days. you can see this affect on exchange traded funds. all the commodity countries, peru, south africa, china, australia, all the etfs associated with that were weak today because those are the countries that are heavy producers of commodities. iron ore is down big, copper is down 6% in two days. that's an enormous move for copper. all this is on the global growth story. people keep writing me, all this is on china export? but it impacts the way we view stock valuations worldwide. that's the key story. >> thanks, bob. >> okay. >> see you later. so we're going out with minor declines here for the major averages. again, the dow was down 118, now down 38. what does it mean for tomorrow's trade? could we get another all-time high on the s&p at that time? let's talk about it, shall we? coming up on the second hour of "the closing bell" with kelly evans and company. i'll see you tomorrow, kelly. >> thank you, bill. welcome to "the closing bell." i'm kelly evans, and here is how we're finishing a relatively down day. i say relatively because we have to watch and see how the s&p shakes out. it looks like we lost about a point on the index putting it off friday's record highs, again just barely. what's interesting is the way the dow has snapped back from an intraday low, more than 100 points to close down by about 33. let's get more on this now from my panel. joining me now is independent tech reporter natalie morris, dan greenhouse and sheila dharmarajan and dom chu and "fast money" trader brian kelly in a moment. it's great to see all of you. the first thing we need to do is put what happened in today's market in context. we've got five years now of this rally. we've got all sorts of people talking about whether the markets are fairly valued, whether they're over valued to the points carmen was making. dan, care to weigh in? >> it's important for investors to remember here on the fifth year anniversary that in this particular instance, length really doesn't matter. what matters is valuation. what matters is perspective forward returns. so when you hear and you read all these stories about, well, the rally is five years old, it's getting mature, it's ageing in length, that really doesn't matter. what matters is what you think individual stocks and by extension the market are going to do over the next, say, three years. that is really all that matters. not this five, year, seven-year length of time. >> brian, do you agree with that? >> listen, the market had every reason in the world to say down today and it didn't. is it fairly valued? i think it's overvalued if you look at market cap to gdp, total market cap to gdp. but it doesn't matter. the market will not go down. we were down 118 points on the dow. we have china which is in some kind of a mini meltdown. we have europe rolling over. and the u.s. stocks -- >> weak data out of japan. >> but, brian, i have to disagree here. the s&p 500 to call the market just femll 6%. >> what do you mean? >> earlier this year, the s&p 500 was down related to emerging markets -- >> but it's back at new highs. >> 18 or 19 times. >> flash correction. >> i don't see how we could say the market refuses to go down. it just fell. >> okay. 6% -- >> dom? >> you know what i'm saying. down 6% a month ago. that's a normal correction in any time. >> it's not even. dom, so talk us through this. what do you think is most significant about the activity we're seeing? >> what's interesting about this is you have some ideas about what's happening with the ukraine. you think with all the tensions in the ukraine, the market would be going down. it's not really going down, not because it's not a bad situation, but because there's nothing really pressing yet. bullets have not flown. yes, there are some developments. you have some data out of china. yes, that's important, but, again, we've had umpteen numbers of times where the market has corrected at least 5% but on average according to the spoke, it's only been an 8% correction at worst on average for each of those times and every time the market has come back. the real question becomes, kelly, what takes this market down? nobody can really tell anybody, including me -- >> i don't know why everybody is waiting for a larger correction. in the last expansion from 2003 through 2007, we didn't fall 10% once the entire time. >> wow. >> we have had numerous 10% corrections this entire rally. >> this is a healthy market, dan? i think that's what everyone is trying to get at. is there something fundamentally worrisome about the activity we're seeing or not? >> and i think there's so many indicators of that. we don't know what's going to happen to interest rates. we don't know what's going to happen with quantitative easing. it's just there's so much sort of skittishness we don't all agree on what signs are pointing in which direction. >> we are starting to hear the drum beat of the bears. goldman sachs saying clients are starting to ask when is the party going to ask and seth klarman saying this is a truman show. it's going to end soon. we just don't know when. there are too many cracks in the market to keep it going farther along. >> seth klarman raises an interesting point, going back to some comments he's been making over a number of years, calling it the twinkle rally, there's nothing substantial to it. i don't know if you can really make that case for this market. who wants to make the argument there actually is a fundamental reason why stocks would have rebounded, gone on a 200% return for the s&p 500 from that low. is there a case to be made and that it continues? brian, what do you think? >> the case to be made is we're on the edge of financial armageddon and now we're not. so, yes, stocks should be higher. corporations should be higher. i think what people are just worried about in general is how sustainable it is, how much of the earnings -- jpmorgan estimates that somewhere around 60% of the earnings growth has been due to buybacks. they're using free cash flow. now corporations are up to about 70% to 80% of their free cash flow being used for buybacks. at some point that ends. again, this morning we should have been down and stayed down. the market didn't. so for right now everything looks fine. >> you could talk about credit markets as well. to quote brian reynolds on this, he said the strength in credit markets, how narrow spreads are, the involvement of most other kinds of funds in this space says -- points to an s&p that should be at 2800 and he was saying at the time we can barely get above 1850. that gives you one point of view on what kind of upward bias or pressure there might be in this space. >> whether or not you believe that there's any substance to it, whether or not you believe it's for real, whether or not you believe it's all central bank driven, if you did not participate in the last five years, you missed out on one of the biggest bull runs of maybe two generations at this point. so whether or not you think there's a fundamental case to be made for stocks, there is at least a reason to hedge your bets on the long side and at least dabble -- that's what investors are telling me. they're saying they can't afford to not be in there because the wave has been to the upside and it's been so strong for the past five years. >> if you are looking over that cliff, then these commodities could become cheaper again and that's one factor we haven't considered is demographics, and demographics, we have an aging baby boom population a skittish echo boom population. it could be that you can bide your time, right? you can make that argument. >> i think the question is what do you do now? we're at this five-year anniversary. if you didn't get in the market, you already lost out quite a bit. do you sit in cash like seth klarman is doing? >> first, what seth collar mklas is not replicatable by the average investor. totally separate story. again, in the context of this entire conversation, we're discussing the five years on, did you miss it, did you not miss it, are you right, are you wrong? all that matters is where you think equities are expected to return going forward. the rest of this conversation is really just interesting -- >> i thought jack bogle was interesting on this last hour. would you quibble with anything he said when he said long term what you're really doing is buying into corporate america. you're talking nominal gdp. you're money will double after a relatively short period of time. is that still the case for equities here or do we have to pay attention to all the valuation warnings and think about market cycles? >> on a secular basis, on a longer term framework, that's a totally reasonable and everybody expects somewhere between 5% and 10% equity appreciation over time. to be clear there are reasonas o quibble. for shorter term investors, those who may have missed out on some portion or all of this rally, the question again becomes what are equities expected to do over the next three to five years. that's a much more challenged environment. the arguments of jeremy grantham and seth klarman and warren buffett, monster investors who are making the case that perhaps the immediate returns are less than what we discussed -- >> i will say this, kelly, here is the thing. if you are allocating your assets properly for your stage in life, it will never really be an issue. so you just have to know what the risk tolerance is and understand there are going to be risks. if you invest on a regular basis, asset allocation matters. >> we'll leave it there for a moment. catch much more coming from brian kelly up on "fast money" at 5:00 p.m. brian, thanks very much. great to see you. we want to get more on the fifth anniversary of the bull market now from cnbc's very own jim cramer. yes, from the louisiana oil rig. jim, we got to talk about that. to what extent does the story you're covering right now fit into your broader view on where the market goes from here? >> well, i'll tell you it's so funny to listen to everybody all day today. i think the real story was that china didn't bring us down. we started with china bringing us down. what's interesting is behind me you will see a rig. this is a company, we talk about overvaluations. how about this? this one yields 6%. it has really gotten crushed. oil has not come down in price. i know there's more ships coming on that do this kind of drilling but there are pockets of undervaluation just like there's ballard power and fuel cell. overvaluation, undervaluation, that makes it all fine for me. >> what do you mean fine, jim? when you hear the guys like warren buffett, seth klarman, a lot ever other guys we were just talking about speak about the market in terms of being fairly valued, fully valued, what do you think? >> well, when did seth klarman turn negative? we should look into that. >> a couple years. >> did he just turn negative last week? as a former performance manager, if i said -- when i got in the business in 1979 the market was radically overvalued. '82 it was overvalued. '87 it was ridiculous. you have to look at whether they're saying the market is versus individuals. if you think ensco is overvalued, you haven't done any homework. if you think that fuel cell companies are cheap, then you obviously have lost your mind. but that's okay. what i'm say something that there are sections of the market that are overvalued and sections that are undervalued and a lot of stuff that's fairly valued. we had a o6% decline earlier. that's fine. the train never really leaves the station. >> you lived through the 1990-2000 bull market. goes down in history as one of the best runs but ends so poorly. people are so cautious thinking are we going to repeat the experience? >> world war ii they thought they were going to repeat world war i. there are always generals who say it's going to be exactly the same so, therefore, we have to avoid it. i look at what happened to facebook today and i know people just think facebook is just total wampam. it makes a lot of money. it's doing well. is it overvalued on 2017 numbers? probably not. you have a lot of cloud stocks that are very overvalued on earnings but they're not -- in revenues that's how growth managers invest. so i can justify a lot of prices. as soon as you hear the word justify, everyone says you're a big phony, greater fool. if you leave now, what are you going to go to? the five-year, the ten-year? >> right. >> 6%. >> yeah, yeah. you know, u.s. data starts to improve, china data starts to improve, maybe we're talking about a different rate environment. jim, what's coming up op mad money? >> nucor is cheap. energy 21 bought back 12% of their stock and they're a really opportunistic company. we have governor jindal who is trying to marry all the industry with the actual state's natural gas resources. it's working. come down here. there's a lot of jobs. you see billboards everywhere, come work. >> exactly. jim, thanks for drawing attention to it and reporting the market today in context. really appreciate it. next time i want to come with you, by the way. it looks like fun. >> please do. fabulous down here. >> see you, jim. much more ahead on markets, your money next. we're going to talk about watching out for hazard signs and talk about some stocks in particular that could be at risk of underperforming. seema mody has been crunching those numbers. stay with us for that information. later, the parents of a 21-year-old woman killed in a car wreck that could have been avoided if regulators had issued a recall on a potentially fatal gm ignition switch. [ bagpipes play ] make it happen with fidelity active trader pro. it's one more innovative reason serious investors are choosing fidelity. call or click to open your fidelity account today. welcome back. goldman warning clients that stock was super high expectations for earnings growth tend to underperform the markets. seema mody has been doing some number crunching of her own to find out which companies could be prime candidates for burnout. >> basic concept makes sense, right? if the bar is set so high, it's even harder for these companies to actually beat street consensus. goldman sachs warning clients it's these companies with high long-term easterninrnings growt expectations that underperform on a one year, three year, and five year basis. high flying stocks like facebook, om zon, gilead sciences, other names in the energy space, chesapeake, eq2, could be bot oil. in terms of which company is expected to grow at the fastest pace in q1 year-over-year, kelly, any guesses? >> fastest -- no, go ahead. i got nothing. >> here it is. you'll get it. it's netflix thanks to, of course, a rise in subscribers as well as its investment in original content. analysts are expecting a big jump in netflix's earnings in q1. when you look at among these games, netflix trading at the highest multiple as the stock continues to rally up another 20% just this year. so what does this all mean? well, i think what it tells us is investing in high growth stocks may not be the recipe to success. in fact, there may be some red flags out there, kelly. >> seema, thanks very much. this is an important one. i want to ask the panel about it. dan, is there such a thing as a growth value distinction? >> sure. listen, we talked about seth klarman in the last segment. he's an entirely different investors than a lot of people that look at names like tesla and netflix, full disclosure we have a buy on it, a neutral now. >> on netflix. >> on netflix. two distinct styles of investment. one focuses on price to book ratio, deep value that over time will reward the investor. the other is largely speaking sort of a momentum play where you look for high pe multiples, high valuations, but also high -- >> this raises an interesting point. is it momentum people are after or is it growth? when i think about a company like amazon, it's not necessarily momentum. it's more about taking the risk on cash flows or profits that are perhaps not as reliable and a cash in that's not as typical. >> it's clearly a tucks of bofu both. when you look at a lot of these companies, fireeye and those types of companies come to mind, there's an embedded level of profit and revenue growth that you tend to, especially in an environment with low revenue and earnings growth more generally, pay up for. that's not to take away from other environments, but in the current environment, simply put, investors are choosing to pay for up for growth. >> like seema was saying, some of these companies have such high expectations, it's just shooting themselves in the foot. so can we sort of let them be? can we let them grow at a modest rate or is that just something that we shouldn't even discuss? >> no, because, i mean, investors are pricing these stocks so highly. they shouldn't be allowed a free pass if they don't produce. i think it's an argument between momentum and growth. yes, people are definitely paying up for it in this time when everyone is looking for yield but who wants to fight the tape. you don't want to stand in front of one of these stocks. what i find ironic is a lot of these ceos themselves are warning about the stock prices of their own companies. reed hastings and netflix. >> or using them to make major acquisitions. >> or buybacks. >> reed hastings has said our stock is a little high. we realize how much it's grown. >> it was interesting only because, again, dan pointed out fireeye. it was in the news because they just had a very high profile secondary stock offering. this stock has been on fire. they bought mandiant. they're going to be a premiere player in cyber security, internet security, and because the stock has gone up so high, they have taken the shot. they've taken the chance at selling some stock, both the company and the existing shareholders to take advantage of that run. so when it comes to these momentum plays, by the way, that stock is still moving higher despite the fact that there was that sharper selling. >> for the average investor out there, if you can't stand the type of volatility that are embedded in a lot of these names whether it's the ones we've discussed or others, it's very -- no matter how high they go, no matter how much you see other people making money in them, it's better just to stay away and focus on something that's a little more tolerable to your level of risk. >> and miss out on a double digit gain in some of the momentum stocks, dan? i would say there's some people who say let's take the bet, let's take the risk and perhaps come out with a good yield. >> you have to be able to sleep at night. that's the key. thank you, seema. great to see you. now, were auto regulators asleep at the wheel? i'll speak with the parents of a 21-year-old woman killed while driving a self chevrolet cobalt. the government was warned about the problem three years prior to that accident and declined to investigate. there are a lot of questions that still need to be answered in this story. we'll be right back. for tapping into a wealth of experience. ♪ for access to one of the top wealth management firms in the country. ♪ for a team of financial professionals who provide customized solutions. great to see you. that still need to be answered management can help you achieve. visit pnc.com/wealthsolutions to find out more. peace of mind is important when so we provide it services you bucan rely on. with centurylink as your trusted it partner, you'll experience reliable uptime for the network and services you depend on. multi-layered security solutions keep your information safe, and secure. and responsive dedicated support meets your needs, and eases your mind. centurylink. your link to what's next. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities. cme group: how the world advances. welcome back. the national highway traffic safety administration under fire for failing to issue a timely recall of potentially fatal general motors ignition switches. phil lebeau has the latest developments. phil? >> kelly, it's a day where general motors announced its hiring two outside law firms to oversee an internal investigation into how it handled the recall of 1.6 million vehicles. the company also launched a website today, a website telling owners of those vehicles impacted if you have questions, let us know. this is the first outreach from general motors aside from saying that it would be recalling these vehicles and sending out the recall notices last week. in the website, mary barra, the ceo of general motors, says we are completely focused on doing what's best for you, our customers. again, general motors recalling 1.6 million vehicles last month because of faulty gm ignition keys linked with 31 accidents and 13 deaths going back to 2004. yesterday "the new york times" ran a blisinger article in which it blasted nhtsa's record over the last ten years saying they failed to see a pattern of complaints of more than 240 complaints involvingg m vehicles that stalled. we reached out to nhtsa for a comment. the organization saying that nhtsa uses a variety of tools to evaluate the more than 40,000 complaints it receives each year, including special crash investigations, searches for similar complaints and comparisons to other vehicles. in this case, they're talking about the cobalt case, the data available to nhtsa at the time did not contain sufficient evidence of a possible safety detect trend that would warrant the agency opening a formal investigation. that's from nathan naylor, the spokesperson for the national highway traffic safety administration. despite this don'ts to become a major problem, they have launched their own internal investigation. for the most part investors are looking through this and saying eventually general motors will get this under control. a lot of questions not only for gm but also for nhtsa. kelly? >> certainly are, phil. thank you very much. we want to now bring in leo and mary ready. their daughter kelly was tragically killed in 2010 when her chevy cobalt suffered what the family believes was the ignition switch failure while she was driving. welcome to the program. we are so sorry for your loss. >> thank you. >> and we'd first like to know general motors in the statement referenced the 31 injuries, the 13 deaths. do you know whether your daughter was one of the 13? have you gotten any confirmation from the company or the government here? >> no, we have not. >> and that would be because when you filed the complaint, there was some question about whether it had it do with the car suddenly stopping while she was driving down the highway or not. can you briefly tell us what happened and whether this recall you think could have prevented your daughter's death? >> oh, i definitely believe that had the recall been when the first accident happened in 2014, kelly's -- our kelly's accident was in 2010, january of 2010. she never would have been driving that car. >> and you have written -- >> we never would have purchased the vehicle. >> you say you never would have purchased the chevy cobalt had you known? >> right. we bought it used. we saw the car fax. there were no recalls on the car fax or any indication there were any problems with the vehicle. if we had known, we never would have bought it. >> and, mary, you had written, i knew the minute i got the news my daughter was kill sod violently and that it did not involve another car it had to be mechanical failure. general motors sent someone to investigate, but it sounds like they never really followed up with you. to what extent do you today even know what happened? >> we have no answers. there has been no closure for our family, and in 2010 it was hard to even post anything about kelly's accident. at the time i was posting on the detroit free press, and i was banned from the detroit free press for my complaints against gm. so a lot of things have changed. fast forward to 2014, and when you go on the detroit free press site and you look under gm information, all of these different topics are coming up, and the ceo, mary t. barra, the ignition switch, when gm knew. the information is more forthcoming in that sense, but gm still has not reached out to us, and we still have not received a recall for this latest -- a recall notice for this latest recall. >> so what did you think when you heard the news and then saw the article this weekend? >> when i heard the news about the recall, this latest recall? >> yes. >> well, i thought to myself, right from the beginning initially i believed that it was mechanical failure. call it a mother's intuition, call it what you want, but i knew the way that my daughter drove, and i knew the type of, you know, daughter that we have, and then when the second recall came in 2014, i thought to myself, this is just -- this is too much. i mean, the first recall we never got answers on anything that had to do with the power steering, the whole mechanism needed to be replaced. that had been manufactured in a partially owned toyota factory. and the only reason i found out about that recall was because i followed a thread that was from the bbc. here in the united states, it wasn't even being -- it wasn't being covered. >> well, and leo, there were two different ways in which you guys might have gotten some accountability or some answers here. one, of course, from general motors itself. the other from the government. and that's what the substance of the article over the weekend largely focused on. nhtsa saying that it had 260 complaints with regard to this kind of situation that amounted to 0.018% of the vehicles under recall and that's why it wasn't more aggressive. what was your reaction to all of that? >> well, i don't feel we personally got anywhere with contact. it made me really wonder what purpose they actually serve if the regulatory agency, they don't seem to have any authority or influence over what gm does. we really didn't get much of a response whatsoever from them, which was very disappointing because i talk thought they wou perhaps help us. right after kelly's accident, i called gm, and i was, you know, surprised about it and like thought we'd get some answers because they sent out an engineer from detroit to take the black box and, you know, a couple other individuals were there -- >> an accident reconstructionist. >> they took the black box, and they -- we were led to believe we would quickly get the information and they would never disclose to us what they found. >> and that wasn't the case -- >> pardon me? >> and i know from reading about what happened that you never actually got that back or got any indication of what the issue was and i just want to circle back -- go ahead. i'm sorry. please, go ahead. >> well, they sent some kind of report that didn't state anything to our attorney, didn't give any details. and basically how he summed it up was they're telling us, if you think there was a problem, you prove it. and they made all kind of conditions and everything like for liability for themselves like not to -- you know, they won't just freely give the information. last week our attorney contacted gm, requested the black box back. this morning he formally sent out a letter, an e-mail, but at this point they haven't responded to him. >> leo, we hope with all the attention now on this case that you'll get more answers and in the meantime there are some serious questions raised about the resources being deflployed across these agencies to make sure when this happens, that it doesn't go so long next time, that it may be able to prevent another tragic accident. thank you both so much for your time and for explaining what happened this afternoon. we really appreciate it. >> thank you. >> we'll take a quick break and be right back here on "the closing bell." tein in jellyfish, impact life expectancy in the u.s., real estate in hong kong, and the optics industry in germany? 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[phones rings] okay, i'll send it. one hundred seventy-two dollars for a chemistry book, what is it, made of gold? just use citi popmoney. boom. ah, she's feeling lucky. hey sweetie...cancun, yeah no, you'll be spending spring break with your new chemistry book. with citi popmoney it's easy to send money to just about anyone, anytime. visit your local branch or citi.com/easierbanking to learn more. welcome back. think the suburban mall is over? brick and mortar stores are shutting down left and right, the mall of america in minnesota is planning to get bigger and better. with 4.2 million square feet of space, already the mall of america in minneapolis is the largeest retail and entertainmet complex in the united states. you can fit seven yankee stadiums, 258 statues of liberty inside the mall, and even so it wants to expand. here to tell us why is maureen bow, the executive vice president of business development at the mall of america. maureen, welcome. you're talking about doubling the size here, really? >> yes, eventually it will be double the size. >> what's going to go in there? >> there's so much that we don't have that we would love to have. in the first addition, which is what we're building right now, there will be an office tower and a food hall. there will be a j.w. marriott and about 75 more retail stores and an event entertainment area. >> i'd like to bring in the panel here in just a second. first of all, i have to say this to me is not a mall. it's a city with a roof over it. >> some people call it a city within a city, yes. >> which in minneapolis i can understand. >> well, we like to say we're temperature controlled. >> okay. how long before there's a geodome? what do you think of this story? has been anyone been to the mall of america because sniff. >> i have, too. >> i have. >> i have not. >> doubling in size? >> i think the bottom line is shopping these days is an experience. you want to do more things versus just buy. it's not surprising they're adding on. it's already kind of a tourist attraction. the fact they're building on doesn't surprise me. what is more interesting is what you're finding happen to a lot of unsuccessful malls. they're being converted to thing like jails or health care centers or universities. it's interesting to see the have and have nots play out. >> i notice in the notes they say they have 400 events per year and 500 weddings. who is getting married at the mall of america? it's so funny but maybe we should just take the word shopping out of shopping mall. because it's a place you go to hang out with your kids and especially this terrible winter. i would let my kids run lapse. just run them like dogs, right? >> could you give us a breakdown of local versus foreign, if you will, visitors to the mall? how much is this people in minnesota and how much is it a tourist destination? >> well, we have 40 million visits annually and 17 million of those are from outside the market. about 3 to 5 million are from the international markets. so definitely tourists are very important to us. we try to create a merchandise mix that plays to people's passions because people do travel and spend to fill their things they love. >> that's right. and what are those things? how has it shifted since the recession and since the last time that malls in this country were generally expanding? >> you know, well, first of all, we've been open for 21 years and every single week for 21 years we've built something new in that building. it is absolutely critical to our success that we stay relevant and stay new. and we know today we're adding music, music is very important. it was missing from the mall for a while and so this summer we're bringing two great music venues back, the 400 bar which is actually world renowned, and hard rock cafe. people like creativity. we have something on the boards that will really play to people's artistic sense. technology. verizon opened an experience store that's absolutely amazing, and, of course, we have apple and microsoft. we opened an exhibition center with barbie and csi and star trek coming soon. so you have to go very wide in the range of interests you have. and then complement it with retail. and let the retail and the attractions leverage each other. >> dom? >> this is not your normal mall. i have not been there, like i said, but based upon what you're telling me, you're telling me about stores, specialty outlets that are different than any mall i have near where i live or that i have ever seen gone to and that makes this much more of an experience, a one off, as' po opposed to an indicator. >> maybe you can sell admissions tickets. quick last word? >> no, i think every mall needs to work at differentiating themselves to survive, and it is about the experience. getting people away from their laptop, getting them in the mall, and having our sales associates tell them they look great. that's how you succeed. >> i know dan can't wait to make the trip. maureen, thank you so much for joining us. it is absolutely fascinating. a little window into what's happening in the economy. we appreciate it. >> thanks. >> now, remember john scully the former apple ceo? he's speaking with me exclusively next. wait until you hear the new smartphone he hopes will catch on in india. the big question is whether it's affordable in a question where a $100 phone is a huge expense for the average person. and later, $1 million at stake. the top six finalists for the compo competitive hult prize. gunderman group is a go. yes! not just a start up. an upstart. gotta get going. gotta be good. good? 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(all) great! i love logistics. anbe a name and not a number?tor scottrade. ron: i'm never alone with scottrade. i can always call or stop by my local office. they're nearby and ready to help. so when i have questions, i can talk to someone who knows exactly how i trade. because i don't trade like everybody. i trade like me. that's why i'm with scottrade. announcer: ranked highest in investor satisfaction with self-directed services by j.d. power and associates. welcome back. former apple ceo john scully is running a firm bearing his name and he's making a huge bet taking on india's smartphone market. hoping to sell phones to that large population. he joins us in an cnbc exclusive. john, it's great to see you. with not target the smartphone market here in the u.s.? >> well, thanks, kelly. as you know, in high-tech it's all about timing. timing is everything, and in the india market, they are one of the largest feature phone cell phone markets in the world. last year they sold 257 million such phones, but right now they're moving from 2g to 3g which means it's possible to have smartphones and fosrtunatey the technology has gotten good enough that we can deliver a very high quality experience product for under $100. compare that with samsung and apple where the high end of their product lines can be as much as $800. that's roughly two months' salary for indians, and it's out of reach as appealing as those products are. >> at the same time you have the likes of mow mozilla coming out with super cheap phones. are you aiming for a middle market? >> there's already good evidence there's a low price market that goes all the way from people selling off the street, that's not our market, to some local brands that have been quite successful. we think there's an opportunity for a really global brand because if we're successful in india, we plan to move into the rest of southeast asia, middle east. we've acquired about a billion dollar in revenue of i.t. businesses in southeast asia. if you were nokia with 19,000 people in your organization trying to sell at these price points is not an advantage. so we think you've got to be extremely lean, run a frugal asian model, and you can bring out a quality product now with the technology where it is. so it's a great time to do what we're trying to do. >> so why target india as a foothold and not china with a similar population and similar upgrades happening across its wireless network? >> i think the real answer is we know a lot about india. we have a strong management team there. we're already running businesses in india that we own. so it's better to sell to the market that you know than the market that you don't know. we just don't know enough about how to market products in china, and so we'd like to start with markets in india, then move into the asean countries, thailand, indonesia, places like that. we'll wait and see. maybe or maybe not we'll go into china. >> you're taking on the iphone. you are taking on apple here in the biggest players in this space even if you're starting small, aren't you? >> no, we're really not. obviously, people love the iphone. it's a beautiful product. but it's an expensive product for the emerging markets, and the new middle class wants the same aspirations as our middle classes had but they don't have the affordability for it. now the technology is good enough that you can have a great quality phone that can take photos. you can have bollywood music, cricket scores, and in that part of the world, in india, receiving a call is for free. to send a call is less than a penny a minute. there's a market for this very, very price conscious consumer and we're looking at the young people in that let's say late teens up until about 30 years old. >> and i suppose what i mean is when you go to these mobile world congress and these kinds of events, everyone is talking about the space. apple even introduced a 5c phone that was meant to be a little lower end. wasn't lowera anend enough. you're taking on the global smartphone market. you want to be the big player in the space that everyone is trying to go after. >> well, it's not really that challenging because, first of all, having thousands and thousands of employees only adds to your overhead costs and makes it difficult to make money at these very low price points. we can leverage the billion dollar supply chain business we have in asia and we can do it much, much frugally. the second thing is that the product we're selling is not trying to compete with high-end samsungs or high-end apple 5s. we're focused on basic things like photos, like music, cricket scores, things of this sort which are very, very appealing to people but just isn't what people are doing with the high end smartphone which may be doing mobile video, for example. >> have you run it by carl icahn yet? >> no, not yet. i think we're going to stay private for a long time. this isn't -- fortunately, we're in a position where we don't have to take a company like this public. we can build it up and own it ourselves and we've got a great operating team, a lot of experience building billion dollar businesses in india. we're pretty excited that this is a time for this type of an approach. a year ago would have been too early but the smartphone business is expected to be 120 million phones this year in india. it's up 180%. so timing is we think just right for this type of an effort. >> and we hope you will come back and let us know how it's going. thank you so much, john scully. great to see you this afternoon. good luck. >> thank you, kelly. >> so what's drawing the most clicks on the website? the hot list is coming up next. plus talk about formidable challenging. the hult prize foundation calls on students to solve global problems. the winner gets $1 million. our oil offer comes with a four-tire rotation and a 27-point inspection. and everything looked great. actually, could you leave those in? sure. want me to run him through the car wash for you, too? no, no, i can't. get a dexos 1, synthetic-blend oil change, tire rotation, and inspection for just $39.95 or less. chevy certified service. could save you fifteen percent or more on car insurance.s everybody knows that. well, did you know that when a tree falls in the forest and no one's around, it does make a sound? ohhh...ugh. geico. little help here. i need>>that's my geico digital insurance id card - gots all my pertinents on it and such. works for me. turn to the camera. >>ah, actually i think my eyes might ha... next! digital insurance id cards. just a tap away on the geico app. welcome back. it's time for "the hot list." what has team people's attention today? >> the malaysia air crash coverage, that's been the big pull all day long. we're leading with a story, one of our reporters, kelly grant, looked at passport use overseas. scary stuff going on. in the united states, we control passport checks very tightly. overseas, not so much. passenger can board aircraft about 1 billion times every year, without having their passport checked. edward snowden gave a talk to the south by southwest conference. it looks a little max headroomy up there. whether you think he's a traitor or hero, kind of interesting. and we have a quick write up on divorces. scientists looking at whether people live together before they divorce. if that was an indicator. they should have been looking at the age, not whether people were living together. >> what does it say, in terms of age? >> it says in terms of age, if you're living with someone before 23 years, you're likely to end up in splitsville, versus if you wait a little while. there you go. all of you kids out there, wait a little while. >> allen, thank you. the whole price foundation awards $1 million to students promising the most sustainable start-ups for the biggest challenges. this year's finalists will be named right here. don't go anywhere. no two people have the same financial goals. pnc investments works with you to understand yours and helps plan for your retirement. talk to a pnc investments financial advisor today. ♪ they're 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 what's next. humans -- even when we cross our "t's" and dot our "i's," we still run into problems. that's why liberty mutual insurance offers accident forgiveness with our auto policies. if you qualify, your rates won't go up due to your first accident. because making mistakes is only human, and so are we. we also offer new car replacement, so if you total your new car, we give you the money for a new one. call liberty mutual insurance at... and ask us all about our auto features, like guaranteed repairs, where if you get into an accident and use one of our certified repair shops, your repairs are guaranteed for life. so call... to talk with an insurance expert about everything that comes standard with our base auto policy. and if you switch, you could save up to $423. liberty mutual insurance. responsibility. what's your policy? welcome back. the hult prize is a start-up accelerato accelerator, bringing the brightest university students to solve the world's toughest challenges. participants from all over the world and the winners walk away with $1 million. ahmad ashkar is the ceo and founder of the whole prize. he's here, today, with the big announcement for us. can yo you briefly tell us what the hult prize is all about? >> the hult prize, sponsored by the hult international business school and the clinton global initiative. we're looking for businesses that come out of the world's business schools around the world, for hopefully creating what we think is a viable business that can end some of the world's toughest challenges. >> and today, you narrow that down considerably. go ahead and narrow it down for us. >> i just got in from dubai. and our boston regional, we had the university of pennsylvania, and in san francisco, we saw m.i.t. travel out there and win that crown in san francisco. in london, we saw hec paris come away from the title. and in dubai, we saw esade, followed with the isb, the indian school of business. and then, we had a really nice collective of teams presenting. >> and the panel here has taken a look at the finalists. >> natalie, who do you think should walk away with 1 million bucks? >> these are very interesting concepts. a lot of them are gross to talk about on television. they're icky. the theme was noncommunicable diseases. using bees or topical treatments for wounds that could fester into something life-threatening. i'm interested in what happens in the accelerators when the companies win this prize. and how do you take this into the market? >> i left out our shanghai winner, which was york university out of canada. our accelerator is a critical piece of this. we put together a seven-week program, which looks at ripping the businesses apart. we'll take our gum solution that came out of boston, which was a solution to use chewing gum to take on some of the world's toughest ncds. and through that accelerator program, we'll see pilots hit the market. and we'll innovate to see companies scale the marketplace. >> we're pretty much out of time. can you give us the clearest success case from the competition thus far? >> we launched aspire foods last year, which was to the nutritional value system and the food challenge worldwide. this was an insect-based ecosystem. >> eating bugs. i'd do it. >> ahmad, thank you. huge congratulations to all of the finalists. we'll wait and see who walks away with the big prize. "fast money" coming up in a few moments. melissa lee, over to you guys. "fast money" starts right now. live from the nasdaq market site in new york city's times square. i'm melissa lee. tim seymour, brian kelly, steve grasso and dan nathan. the correction is coming. we heard warnings from some of wall street's top money managers. but no one seems to know when it will actually hit. the market showing resiliency today, with the dow coming back from a triple-digit deficit earlier in the session. investors can't sit around and wait for the pullback. what do you do with your money until then? it seems like people don't want to miss the rally. >> seems like every rally is the reluctant rally. to your point, clients feel as if everyone thinks we shoul

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