Transcripts For CNBC Closing Bell 20140417

So very surprising to see the turnaround this morning. Maybe it is offset by some companies that we hear from. Heres a story we have been following all day. You get fired from your job in just over a yearandahalf and leave with a severance package worth nearly 60 million. Ill take it. Sorry, just didnt work out, but here is a nice parting gift for you. It actually wa lly with one yah executive . Whats that say about the ceo marissa myer . Well have that story. It was on this date 25 years ago cnbc launched to the world. Well have vintage clips and talk to the man who ran cnbc back then, bob wright, who was the first person ever seen on this network. Stay with us for a very special two hours. Bill, i am so happy and privileged to be anchoring with you on this day. Well tell that story later. Yes, we will. The markets right now, the Dow Jones Industrial average and all major averages are in positive territory right now. Oh i spoke too soon it just dipped back. Because it is the most volatile hour of the trading session. 16,423. Same intraday pattern but the nasdaq is still in positive territory, however. As for the s p, higher by 4 1 2 points. 1,866. Lets talk about it in todays closing bell exchange. Today with is at the big board, kimberly fontz, karen hughes, jim lowell, Gerard Fitzpatrick and our own Rick Santelli standing by in chicago. Jim lowell, what matters more to the markets today do you imagine fundamentals like earnings or fed policy . What do you think . Both. No question about it. Janet yellins speech says the fed remains in the market and economys corner. Hasnt paid to fight the fed for several years and it wont for several years going forward. In terms of earnings, while ibm and google disappointed last night, american express, the best bellwether indicator of Small Business lending and also Consumer Lending and spending, weve seen growth. This has enabled this market to gain more ground than its lost over any meaningful time period. Can it keep going when a lot of people are wondering whether the Interest Rate market is telling us that the economy cant keep up . I think slow and steady wins the race. Yesterday with janet yellin reiterating that hey, they are going to keep Interest Rates low and theyre going to tie it to the jobless market or unemployment market, inflation under control, this is good news i think for the markets on overall for long term. Heres a reason i completely agree. If you take a look at the longterm treasuries today because yesterday we did have the janet yellin speech and the market just took off on us here but yes, weve had some disappointing earnings. Mixed reports really. Jpmorgan was not good. Bank of america was not good. Her point yesterday was the economy is not stronger yet. Heather hughes, is this this safety net that we know still exists yes. The bernanke input and the yellin input. Have you that beige book, the current Economic Indicator released and published by the Federal Reserve yesterday. Loan growth is picking up, loan demand, consumer spending, consumer confidence, manufacturing and auto sales. Yet, Interest Rates, yes, they are a little higher today, 2. 72 i think on the 10year, but shouldnt they be even higher than they are now . If we have this positive Economic Data . I dont understand. Since we began the tapering in the beginning of the year in january we with drew the bond buying purchases yet yields have really done nothing but go lower. That doesnt make any sense. I think yields will stay lower though in that situation. The change has really been from the unemployment market to inflati inflation. Unemployment, the economy is Getting Better but with yellins remarks on inflation to get inflation relatively low, i can still see yields staying pretty low for a bit longer. But eventually those yields will go higher. She sheez no sees no signs o inflation. First of all, i think this is a very important dynamic. I a never advocating selling equities. We are not in synonymous territory looking at the economy and looking at the equity markets. Having said that, i so dont buy into the reason that the long end is spongy in terms of lower yields than many many would suspect is really an inflation, disinflation or deflation. I dont see it. I still say that if you look at the actual indexes for ppi and cpi, even under new calculations, theyre pretty lofty. Food and energy, pretty lofty. I think it is very clear that the equity markets may have moved on thin ice at various points over the last couple of months in 2014, think january, think three weeks ago, and that really does open the door for buying on treasuries to kind of hedge that. It doesnt surprise me. If youre going to buy treasuries, youre going to buy the long end. If youre going to buy long, buy something that gives you a little fig. These are the conversations we have whos buying the 10year treasury right now . What is it thats keeping the 10 and 30year yield low . Who wants a 2. 7 yield . No no. Look at the money markets theres how many trillions of dollars in money markets. If youre willing to step into the money markets, i think youre most certainly willing to step into the long end of the curve. And then add in, gee, a 3 spanish 10, a 3 eitalian 10, where do you think there is more risk . That opened up a whole new glide path i see a different choice that investors make every day. They can buy the 10year yielding 2. 7 and onethird of the s p 500 yields even more than that. Why wouldnt they buy because the stock goes down. It is for the diversification. People are looking for that diversification out there. Equity markets has had a great young. Yellins response being there is still some concern that the economy is fragile, if it does fall over it is not the expected view but if it does fall over thats where you want to hold the treasuries. Treasuries give you that diversification irrespective of where the yield is because the price is going up if the equity market is going down. Kimberly, do you buy stocks for their yield right now . We are fully invested so we do have stocks in the portfolio with a nice dividend and yield on it but i think the best defense is a great offense for clients and investors and that is a diversified portfolio. Make sure that you still have the treasuries and still have the bonds and portfolio as well as the equity. Gerard, are you recommending emerging market . What do you mean . Like emerging market credits like Corporate Bonds or do you mean stocks in those countries . We like on the bond side. We like emerging market debt particularly local currency as well. Those current account deficits have turned around. A lot of negativity there recently. Blink your eyes, you opened them and the emerging market current accounts are so much better. Theyve cheapened recently. A lot of fear from the likes of ukraine out there. Fundamentals are still looking better. There is still the risk on appetites going on. All those factors go to support emerging market debt. We like emerging market debt. Higher yielding in a lo Interest Rate world. Appreciate your thoughts as always, gang. Thanks for joining us today. Heading toward the closing, about 50 minutes left in the trading session here, markets are hovering really. It feels like a day before something. Oh, it is a threeday weekend coming up. Yes were up ten points on the dow. Time flying when you are having fun. Right . Hard to believe cnbc hit the airwaves 25 years ago today. Now that picture was taken 23 years ago today when cnbc merged with my network, fnn. Financial news network. Yes, it was. But, it is still back in the early days of business television. Im bob wright, the president of nbc. Id like to welcome you to the most significant programming effort nbc has ever undertaken outside of the network. The consumer news and business channel, cnbc. The man himself, former head of nbc officially kicking off cnbcs first broadcast ever. Bob wright joins us next for a trip down memory lane and we will hear about the day cnbcs future was saved and that day changed my life drastically as well. Well explain that coming up. You got a lot colder didnt you . From california to new jersey . And who would have thunk it . The s p heading for its best week of the year. What happened to that scary correction . Were going to talk to the pros about how long this stealth rally could last. Plus, netflix is seeing green on the heels of an analyst upgrade. But is it too soon to fall back in love with this black and blue stock . Our netflix watchers will duke it out coming up. 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Female announcer its sleep trains interest free for 3 event. Get three years interestfree financing on beautyrest black, stearns foster, serta icomfort; even tempurpedic. Plus, get free delivery, and sleep trains 100day low price guarantee. Youll never find an Interest Rate lower than sleep trains interest free for 3 event, on now. Sleep train your ticket to a better nights sleep im bob wright, the president of nbc. Id like to welcome you to the most significant programming effort nbc has ever undertaken outside of the network. The consumer news and business channel, cnbc, will tell you what circumstances are affecting the economy and the markets and how those circumstances affect your life. Well give constant attention to news affecting you, the consumer. Were well aware that cnbc can only proceed by becoming an important part of your life. We look forward to the challenge. Former nbc chairman bob wright introducing cnbc to the world on the 21st day of april, 25 years ago today. We are so excited to have bob back with us today to talk about the creation of the network and its evolution, all of which probably never would have happened without bob wright. You havent changed a bit. You look exactly the same. Unlike the rest of us, you havent changed in 25 years, bob. And look we dont even have to suck up to you anymore i had dead david running a dell prompter. It was probably the whole secret. He loves to tell that story, too. I know. Did you ink think 25 years from then youd be sitting here celebrating this, that wed be as successful as it turned out . Well, i was always very optimistic. It was an enormous challenge, michelle. I mean, my god, it was a brutal effort. Even chuck dolan ran out of money before we got up on this. It was a very difficult thing. Then we doubled down two years later with fnn. Then we got some very good people, including yourselves. Then people forget in 1993 we went to asia and europe simultaneously. This was like talk about taking on longshot odds. We really had them. That day in april, tom rogers was there, david zazlov were there, two of the people were instrumentally. Tom runs tivo, david now runs discovery communications. You had a very deep bench back then, too, bob. Oh, we were very fortunate. We had Mike Estridge as our general manager. He was a very smart guy. He kept saying, i dont know. If this it really going to work im killing myself for it. I always heard when fnn was bought in bankruptcy, one of the reasons you wanted it because it had this Cool Technology called the ticker. Before that i remember my dad driving down in the Charles Schwab office at lunch time so he could watch the stocks go by. Then suddenly there was on tv instead. Is that true . We tried to we tried to buy or merge with fnn for two years. Even before we went on the air and we couldnt get anywhere with the mad neurosurgeon was running the shop. It was very difficult and so finally, we had to they got into so much trouble that when it went into bankruptcy, then we got in this enormous bidding contest with dow jones and westinghouse. It was quite a ride. Those were crazy times. You know, we forget, bob, back then, no email, no internet, no cell phones. The information flow was a lot different than it is now. So for people who wanted uptodate information about the stock mark or whatever market they were trading, i mean fnn was in the 80s, but cnbc did a much better job of providing that information when it went on the air 25 years ago. Right . Well, it was also remarkable how much the trades were actually generally daily newspapers. They covered the Networks Like it was every day was a president ial election. Every little thing was covered. Every argument, every default, every issue was covered. So you couldnt get out of the print. What do you think is the next 25 years for cnbc . What does it hold . I hear a lot of sirens. Is this kind of ukrainian situation . It speaks to the fact that the floor is so empty now and they get bored and there is a guy whooping over here like crazy. It is the day before a threeday weekend and everybodys in a holiday mood. They dont have russian flags. No. Everythings fine here. Obviously now weve got digital technology. Were global. Were social media. All of those things that are now part of our not only our revenue stream but our transmission stream at the same time. Where does it go from here, do you think . I think you have to accept and fall in love with every new piece of technology and try to maximize your ability to deal with it as fast as you can. Some of them wont stick and some of them will be less effective. But you just cant ignore it. And everybody thats in the business. You started, bill, in 1981 with fnn along with sue. Youve seen that world change around you. You have to constantly adapt. But the basic fundamentals are still the same. You have a period right now i know the piece that bob pisani wrote about, youve got a lot of people now, theyre not baby boomers, theyre millenniums earlier, they need a lot of help. They dont have retirement programs. Theyre 401 k oriented. They have to learn about equities, about bonds. I mean it is a very challenging environment for them. They dont have theyre not going to look forward to defined benefit pensions. When we show people the original video of you speaking, the symbol for cnbc did not have the peacock. It actually einvolved a lot. Why didnt we have the peacock at the beginning . The peacock was like the war of the worlds with the affiliates. We had knockdown, dragout battles six months ahead had of time about using the peacock. It was a very you have no idea how difficult this was. Glad it finally happened. Bob, were thrilled to have you spending time with us. Our best to your bride, suzanne. We love seeing both of you here a couple weeks ago for the Autism National awareness day as well. Good to see you, bob, thanks. Thank you very much. And congratulations on all the good work you do and keep it up. Im certainly a watcher all the time. I get joe kernen on early in the morning. Weve always loved your support. 15 years ago now. I interview at cnbc. My grandfathers so excited, thats my favorite channel. I get home, i call my dad, daddy, i just got back from the interview. And he doesnt say did you get the job, how did it go, did they like you. No, my fathers first question is, did you meet Bill Griffeth . I get a call from the boss. He says can you come into my office in a minute . There is a young lady in there interviewing for a job. She stands up and says my grandfathers a big fan of yours. I was a big fan, too. No, you had no idea who i was at that time. I did as Humphrey Bogart said, i knew it was the beginning of a fun relationship. So it was great. Fun times. More to come, too. 40 minutes before the bell, the Dow Jones Industrial average right now is in positive territory by roughly 17 points. As we head toward the threeday weekend, this is what the floor here at the New York Stock Exchange looked like 25 years ago back when madonnas like a prayer was number one. Well talk to some wall street veterans who were among the first guests ever here on cnbc. Some old, dear friends. Wait until you hear what they see your money doing over the next 25 years. Thats worth sticking around for. Netflix bouncing off recent lows on analyst upgrade. Find out how the bull Case Scenario for the stock holds up against a major netflix bear. Thats next. Keep it right here. For what reality teaches you. Firsthand. E. In the face of danger, and under the most demanding circumstances. Experience builds character. Experience builds confidence. And experience. Has built this. The 2014 glk. The engineering, and the experience, of mercedesbenz. 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Com. music defiance is in our bones. Defiance never grows old. Citracal maximum. Calcium citrate plus d. Highly soluble, easily absorbed. Little bit of indecisive trade right now. The dow is in positive territory again. S p barely. Nasdaq is higher by 21. In this fourday period, could be the best week for the s p of the year. It doesnt feel like that considering that massive selloff we talk about for a couple weeks. Bertha coombs, whats driving these markets today . Weve seen a lot of movement. Earnings one thing. China answered a twitter, it opens lower in its debut after moving higher. The lower range of expectations. Still a nice move up today. More than 20 . Ge also gaining ground after its First Quarter earnings beat street estimates by a penny, boosted by a rebound in its industrial businesses. Sears, a surprise mover today. In an s. E. C. Filing, sears director disclosed he purchased 475,000 worth of sears stock. A good day for netflix after the stock was upgraded. The companys International Growth will accelerate over the next 18 months. Stock lost a quarter of its value since hitting an alltime high of 458 last month. I remember seeing the ceo at nasdaq seeing well what are they going to do . Nobody rents cds anymore . What are they going to do as we move more digital . Clearly they were thinking ahead and i wasnt. Right. They were pioneers. Thank you, bertha. Well talk more about what this upgrade in earnings due out on monday, should you be betting on netfl netflix . Lets duke it out here. David, i thought Reed Hastings had righted the ship. No . Content costs are rising much faster than revenue, theyve gotten more competition, a valuation that applies 25 of Company Growth and profits for 15 years. It just doesnt make sense anymore. I think the best days are far behind it and profits are getting lower, margins are getting smaller. I dont understand how there could be a bull case here. James, ive been hearing that bear case forever, the acquisition costs are too high. Why do you not think thats a problem . The stock is down 25 from its highs on virtually no news. Call it a victim of the momentum stock bubble bursting. If we look at that group of momentum stocks, netflix is one of the Stronger Companies in that group. They are posting solid growth in earnings per share and i believe that especially this quarter we have a very good chance of seeing the stock pop higher. Q1 is historically their best for subscriber growth. Even if they do guide lower, net tlix has a history of being conservative in guidance. If we see a good number on monday, i think is there a price youd buy it at or is this just broken and youre going someplace else . Probably under 100. Dont focus on earnings per share if you want to make money in this stock market. Earnings per share arent reliable. You have to look at the underlying economics and the profits. You cant look at the top line growth either. Netflix has tried to tell people for years were growing. But they dont have profits and theyre not going to get them internationally either. You sound like are you in it for a shortterm trade. Basic case you made was there was a really big selloff so at some point you get in because there is going to be a return to the mean. No . He we look at what the Options Market implies for next week. It is around a 40 move for next weeks expiration. If you look at how netflix trades an reports quarter over quarter, this quarter there is a very good chance the stock heads higher. The longterm picture is a different story. Im a trader, very active, im in and out of positions all the time. Im not necessarily looking at a longterm investment. There is a chance the stock makes that 40 move higher here with an upside target around 385. We have breaking news heading our way so we will say thank you for joining us. Well take a quick break here because we are hearing the president is headed toward the Briefing Room at the white house right now. We expect him to speak potentially about Health Care Reform but perhaps also about the situation, if he takes questions, the agreement that came to with russia today and kerry and lavrov considering the ukraine. Dow up 16. Back after this. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. And only national is ranked highest in car rental Customer Satisfaction by j. D. Power. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Without standard leather. You are feeling exhilarated with frontwheel drive. You are feeling powerful with a 4cylinder engine. [ male announcer ] open your eyes. To the 6cylinder, 8speed lexus gs. With more standard horsepower than any of its german competitors. This is a wakeup call. Afghanistan, in 2009. Orbiting the moon in 1971. [ male announcer ] once its earned, usaa Auto Insurance is often handed down from generation to generation. Because it offers a superior level of protection. And because usaas commitment to serve current and former military members and their families is without equal. Begin your legacy. Get an Auto Insurance quote. Usaa. We know what it means to serve. slurp hear that . Thats the sound of your electronics sucking power from your outlets. So unplug youll save energy and money. slurp the more you know. Look at that. The dow is up 601 . This is in 25 years. Holy smokes the s p higher by 515 . Nasdaq, even though it never regained the heights we saw during the dotcom bubble, the nasdaq is still up 873 from the day cnbc started. I dont know if were going to show it probably not. I happened to read oil is around 100 a barrel here in the united states. 25 years ago it was 19 a barrel on the day that cnbc went on the air. Markets have come a long way in the past 25 years. Was that down 2,000 on cnbcs first day . The dow up nine points at 16,434. As we pointed out, nasdaq hit that peak of 5,000 back in 2000. Cnbcs very first guest, Chuck Lieberman this is like mt. Rushmore. Jim awok, marshal akopf. And we are about a mintute away from the New York Stock Exchange were going to get the whoop whoop. Thats because they have so little to do. Chuck lieberman its going to happen you. You know what . We dont fight it. We let it happen. So here we go. In eight, seven, six, five, four, three, two, one whoop. There you go. Okay. Chuck lieberman, you were the very first person interviewed here at cnbc 25 years ago. You remember that a lot better than i do. We were talking about the dollar, fed policy. Some things dont change. In fact, in 1989 if you recall, it was after 1987, a big market selloff that scarred some people. I think we are dealing with the same thing today with a big selloff in 2008. A lot of people still arent even in the market. Are things a lot different than they were . Well, yes. Before cnbc when we were just beginning the markets were less transparent, there was more rumor, people didnt have access to information. With cnbc did is it took all the information and made it a democracy. Everybody got the same information, at the same time. Through Media Outlets such as cnbc. I think the markets have become more fair, more transparent and quicker moving as a result. Gene, you and i go way back, way before cnbc 25. In fact, it was at a time when a new phenomenon was being created, that of a stock market pundit on television. It didnt exist before then. Right . To go on television to talk about where is the stock market going from here, you were one of the very first to do that. You know, bill, i cant believe its been 25 or 33 years, back to fnn days. But i was very blessed to be asked to be on that First Program with you and sue and here we are today. Glad to be one of the early pundits. The way you analyze the markets, has that changed because of the flow of information now and how that has changed over the years . Well, bill, when i started in the business, id be running to the dow jones broad tape which is a paper news ticker. Thats where wed get our information. Youd have to keep on going back and forth from your office to that paper printer to see what was going on. But we were one of the first in our firm to have cnbc in our office so that really changed for us. We were able now to get all the news source right there and then. It was very exciting time. Hi, marshall. How did the emergence of Business News television affect you and what impact do you think its had on the markets . Well, the advent of cnbc was very exciting for wall people like myself because here was a channel that was totally dedicated to bringing wall street to main street, and for wall street that was fantastic because the names of the firms were somewhat known but they became even better known and obviously many of the participants like all of us here today became better known and hopefully more respected. Has the spotlight of media on the markets and the economy changed the markets and the economy . We often are criticized for either being cheerleaders or being too glum or causing a selloff or causing a rally. Do we . Yes. In a simple word. You move the markets. You get people on who i think in some cases are interested in playing the role of chicken little. It is a lot easier getting on television if you want to play the role of chicken little. It is created a blossoming of the chicken little business. But im going to push back. Because you look back at the history of the stock market in the united states, you go back to the 1800s, there was no cnbc. There was no radio. There was no television and there was still market panic. We werent around for actual dp tulip mania, either, by the way. What stocks to buy, whats your allocation, has been going on forever. Cnbc changed how that information is communicated. Corporations, investors, politicians, governments so it increased the flow of information but not the basis of how you maybe money. Gene peroni, were you a market technician. You were one of those guys who looked at the charts and we all thought what is this . Are you looking at chicken entrails . Now everybody looks at charts. Has that changed the nature of what we call Technical Analysis . It becomes a selffulfilling prophecy where you have these support levels, these resistance levels that everybodys watching now. Well, actually, ive made a business and Portfolio Management bill by using Technical Analysis almost exclusively. But weve recognized in that that you cant use charts alone. You cant use money alone or relatively strength alone. But combining all those different technical tools and others can make for a very worth while and effective Portfolio Management tool for the long term. Marshall, what do you think . Business news and business looks like 25 years from now . Are we even on tv or were on every single different panel in your house . Whatever it will be, it will be quite different than any of us can imagine today. But as just was said, fundamental value will continue to be very important in collecting any potential investment. That wont change. All right. Weve got some breaking news. Hang on, guys. You remember how this works . We always interrupt you for breaking new. Something on herballife. More on the story we first reported earlier of the illinois attorney general opening an investigation into herballife. We now have a statement from herb herbalife which says we are confidence in the integrity of our long standing business and the companys compliance with applicable laws and regulations. We look forward to working with the Illinois Attorney Generals Office to resolve the consumer splants complaints it has received. The illinois attorney general has opened an investigation into herbalife. Now the company responding to that. Back to you as the stock remains active here. Thank you. It occurs to me when we talk about this herbalife storying with to your point earlier about transparency, youd have to wait a day, read it in the newspaper, or maybe somebody called you. Now have you Something Like this and if there were rumors and whispers and certain people got abscess to the information before other people. Now everybody gets it the same time. You have to disseminate it. Its been a real contribution to the investing public. Gentlemen, we do have the president coming so youre being bigfooted by president obama. We defer. It has been a great, great pleasure. See you guys around. Thank you all for being with us. Thank you, bill, so much. We are waiting for the president to step into the white house Briefing Room here to talk ostensibly initially about obamacare, i would imagine the Enrollment Program and things like that. But we are also waiting to ask what reporters will ask about the situation in uukraine and particularly our relationship with russia. John are harwood is standing by there. In fact, here comes the president now. Well hear from john when he finishes. Before i begin, i just want to express on behalf of the American People our deepest condolences to the republic of korea and the families of all those who have seen their loved ones lost when a ferry sank within the last couple of days. Obviously information is still coming if. We know that many of the victims of this terrible tragedy were students and American Navy personnel and marines have already been on the scene helping with search and rescue. As one of our closest allies, our commitment to south korea sun wavering, in good times and in bad, and thats something ill hes underscore during my visit to seoul next week. Before i take questions, id also like to say a few words who about how the Affordable Care act is now coughing less people at less cost than most would have predicted a few months ago. The first open Enrollment Period under this law ended a little over two weeks ago. As more data comes in, we now know that the number of americans who have signed up for private insurance in the marketplaces has grown to 8 Million People. 8 Million People. 35 of people who enrolled through the federal marketplace are under the age of 35. All told, independent experts now estimate that millions of americans who were uninsured have gained coverage this year with millions more to come next year and the year after. Weve also seen sign that the Affordable Care act is bringing Economic Security to more americans. Before this law added new transparency an competition to the individual market, folks who bought insurance on their own regularly saw doubledigit increases in their premiums. That was the norm. While we would suspect that premiums will keep rising a is they have for decades, we also know that since the law took effect, Health Care Spending has risen more slowly than at any time in the past 50 years. In the decade before the Affordable Care act, employer based insurance rose almost 8 a year. Last year it grew at half that rate. Under this law, real medicare costs per person have nearly stopped growing. The life of the Medicare Trust fund has been extended by ten years and the independent Congressional Budget Office now expects premiums for plans on the marketplace to be 15 lower than originally predicted. Those savings add up to more money that families can spend at businesses, more money businesses can spend hiring more workers, and the cbo now says the Affordable Care act will be cheaper than recently projected. Lower costs from coverage provisions will shrink our deficit by an extra 100 billion. So the bottom line is, under the Affordable Care and the, the share of americans with insurance is up, the groewth of Health Care Costs is down, hundreds of millions of americans who already had insurance now have new predictions to freedom from lifetime taps on your care. No american with a preexisting condition like asthma or cancer can be denied coverage. No woman can be charged more just for being a woman. Those days are over. And this thing is working. Ive said before, this law wont solve all the problems in our health care system. We know wheve got more work to do but we now know for a fact that revealing the Affordable Care act would increase the deficit, raise premiums for millions of americans and take insurance away from millions more. Which is why, as ive said before, i find it strange that the republican position on this law is still stuck in the same place that it has always been. They still want bring themselves to admit that the Affordable Care act is working. They said nobody would sign up. They were wrong about that. They said it would be unaffordable for the country. They were wrong about that. They were wrong to keep trying to repeal a law that is working when they have no alternative answer for millions of americans with preexisting conditions who would be denied coverage again. Where every woman who would be charged more for just being a woman again. I know every american isnt going to agree with this law, but i think we can agree that it is well past time to move on as a country and refocus our energy on the issues that the American People are most concerned about and that continues to be the economy. Because these endless, fruitless repeal efforts come at a cost. The 50 or so votes republicans have taken to repeal this law could have been 50 votes to create jobs by investing in things like infrastructure or innovation. Or 50 votes to make it easier for middle class families to send their kids to college. Or 50 votes to raise the minimum wage or restore Unemployment Insurance that they let expire for folks working hard to find a new job. Point is, the repealed debate is, and should be, over. The Affordable Care act is working and i know the American People dont want us spending the next 2 1 2 years refighting the settled political battles of the last five years. They sent us here to repair our economy, rebuild our middle class and restore our founding promise of opportunity not just for a few but for all. As president thats exactly what i intend to keep doing as long as im in this office. With that, lets take some questions. Kathleen hennessey of the l. A. Times. Sounds like theres been some development in the ukraine talks in geneva. Im just wondering if you could describe your level of cough dense in what this agreement is and how you can be sure that russia will follow through given some of the remarks from president putin this morning. I dont think we can be sure of anything at this point. I think there is the possibility, the prospect, that diplomacy may deescalate the situation and we may be able to move towards what has always been our goal, which is let the ukrainians make their own decisions about their own lives. There was a meeting in geneva. Representatives of the Ukrainian Government, the russian government, the eu, as well as the united states. It was a lengthy, vigorous conversation. My understanding is that the ukrainian Prime Minister gave a detailed and thorough presentation about the reforms that they intend to introduce, including reforms that provide assurances for ukrainians who live in eastern and southern ukraine, a that they will be fully represented, that their rights will be protected, that russian speakers and russian natives in ukraine will have the full protection of the law and my understanding based on what ive heard is that there was an acknowledgement within the meeting that the Ukrainian Government in kiev had gone out of its way to address a range of the concerns that may have existed in southern and eastern ukraine. There was a promising Public Statement that indicated the need to disarm all irregular forces and militias and groups that had been occupying buildings. There was an offer of amnesty to those who would willingly lay down their arms. Evacuate those buildings so that law and order could be restored in eastern and southern ukraine. The russians signed on to that statement and the question now becomes, will in fact they use the influence that theyve exerted in a disruptive way to restore some order so that ukrainians can carry out an election, move forward with the decentralization reforms that theyve proposed, stabilize their economy, and start are getting back on the path of growth and democracy. And that their sovereignty will be respected. Were not going to know whether in fact there a followthrough on these statements for several days. And so today i spoke with chancellor merkel. Later on today im going to be speaking to david cameron. Were going to be consulting with our european allies. Over the last week we have put in place additional consequences that kwee impose on the russians if we do not see actual improvement of the situation on the ground. And we are coordinating now with our european allies. My hope is that we actually do see followthrough over the next several days but i dont think that given past performance we can count on that and we have to be prepared to potentially spon to what continue to be efforts of interference by the russians in eastern and southern ukraine. If in fact we do see improvements, then that will obviously be a positive. In the meantime were going to make sure that we continue to help the Ukrainian Government working with the imf, the europeans and others, to stabilize their economy and to start reforming it. Were going to continue to work with our nato allies to make sure that they are assured that were going to meet our article 5 obligations and that they are secure, and as ive said before, i think i had had an interview with major yesterday in which i mentioned this whole exercise by the russians is not good for russia either. I think a number of articles today indicate the degree to which an economy that was already stuck in the mud is further deteriorating because of these actions. And in my conversations with president putin im emphasized the same thing, that we have no desire to see further deterioration in the russian economy. On the other hand, we are going to continue to uphold the basic principle of sovereignty an territorial integrity for all countries and that there is a way for ukraine to be independent, to be sovereign, and to have positive relationships with both the west an the east, with both its european neighbors and its russian neighbors. And thats our primary concern. Maria pena. Yes, thank you, mr. President. Ive got a hotspot for you here in the u. S. House majority leader cantor said or explained that you havent learned how to work with them and hes angry that you are attack being the gop on the lack of movement on immigration reform. I was wondering how you respond to that. And the second part to that, right now you have strikers across the street. I wonder if if you will make some sort of announcement in the coming weeks to expand the relief for the undocumented. Thank you. I actually had a very pleasant conversation with the mr. Cantor yesterday. Really. I did. You know, youre always kind of surprised by the mismatch between press releases and the conversation. Wished him happy passover and what i said to him privately is something that i would share with that ive said publicly which is, there is bipartisan support for comprehensive immigration reform. It would strengthen our economy, it would help with our security, and it would provide relief to families who many of whom have lived here for years and who have children and family members who are u. S. Citizens. And that congress should act. And that right now whats holding us back is House Republican leadership not willing to go ahead and let the process move forward. So it was a pretty friendly conversation. I think in his press release, i gather he was referring to the observation that we had made a day earlier that it had now been a year since the senate had passed a strong bipartisan bill and that although we had heard a lot of talk about the House Republicans being interested in doing something, nothing had happened yet. And suggesting that we need some urgency here. I still feel the same way. I know there are republicans in the house, as there are republicans in the senate, who know this is the right thing to do. I also know it is hard politics for republicans because there are some in their base that are very opposed to this. But what i also know is that there are families all across the country who are experiencing great hardship and pain because this is not getting resolved. I also know that there are businesses around the country that could be growing even faster, that are deficits that could be coming down faster, that we would have more customers in our shops if we get this thing resolved. We know what the right thing to do is. It is a matter of political will. It is not any longer a matter of policy. And im going to continue to encourage them to get this done. As far as our actions, jay johnson, our new head of department of Homeland Security has been talking to everybody law enforcement, immigrant rights groups, to do a thorough review of our approach towards enforcement. Were doing that in consultation with democrats and republicans and with any interested party. I do think that the system we have right now is broken. Im not alone in that opinion. The only way to truly fix it is through congressional action. We have already tried to take as many administrative steps as we could. Were going to review it one more time to see if there is more that we can do to make it more consistent with common sense and more consistent with i think the attitudes of the American People which is we shouldnt be in the business necessarily of tearing families apart who otherwise are law abiding. An so let me i wont get into timing right now because mr. Johnsons going to go ahead and do that review. Tamara keith. Yes. So regarding the Affordable Care act, i think yeah, lets talk about that. Since you brought it up. I think everyone agrees that it has flaws. But democrats have been sort of reluctant in congress to reopen the conversation and republicans have been more than happy to reopen the conversation but if a different way. Now that, as you say, its here to stay, there are so many people that signed up, in this environment, is it possible to do the kind of corrections that Business Community and many others would like to see sort of small technical corrections . It is absolutely possible, but it will require a change in attitude on the part of the republicans. I have always said from the outside that on any large piece of legislation like this, there are going to be things that need to be improved, need to be tweaked. I said that i think the day i signed the bill. And i dont think theres been any hesitation on our part to consider ideas that would actually improve the legislation. The challenge we have is that if we have certain members in the Republican Party whose view is making it work better is a concession to me, then its hard in that environment to actually get it done. And i recognize that their party has gone through the stages of grief. Right . Anger and denial and all that stuff. And were not at acceptance yet. But at some point my assumption is that there will be an interest to figure out how do we make this work in the best way possible. We have 8 Million People signed up. Through the exchanges. That doesnt include the 3 million young people who are able to stay on their parents plan. It doesnt include the 3 Million People who benefited from expansions in medicaid. If my math is correct, thats 14 million right there. Youve got another 5 Million People that signed up outside of the marketplaces but are part of the same insurance pool. So weve got a sizable part of the u. S. Population now that are in the for the first time in many cases, in a position to enjoy the Financial Security of Health Insurance. Im meeting them as im on the road. Saw a woman yesterday, young woman, maybe 34, with her mom and her dad. Shes got two small kids and selfemployed husband and it was diagnosed with Breast Cancer and this isnt an abstraction to her. She is saving her home. She is saving her business. She is saving her parents hole, potentially, because shes got Health Insurance, which she just could not afford. And the question now becomes if in fact this is working for a lot of people, but there are still improvements to make, why are we still having a conversation about repealing the whole thing and why are we having folks say that any efforts to improve it are somehow handing obama a victory. This isnt about me and my hope is that we start moving beyond that. My suspicion is that probably will not happen until after november because it seems as if this is the primary agenda item in the republican political platform. But heres what i know. The American People would much rather see us talk about jobs, would much rather see us talk about high college costs. Would much rather see us discussing how we can rebuild our roads and our bridges, our infrastructure around put people back to work. Theyd much rather see us talk about how we boost wages an boost incomes and improve their individual family bottom lines. And if the republicans want to spend the entire next six months or year talking about repealing a bill that provides millions of People Health insurance without providing any meaningful alternative, instead of wanting to talk about jobs and the Economic Situation of families all across the country, thats their prerogative. At some point i think theyll make the transition. Thats my hope anyway. If not, were just going to keep on doing what were doing, which is making it work for people all across the country. Im sorry. Im going to say one last thing about this. Just because this does frustrate me. States that have chosen not to expand medicaid for no other reason than political spite. You got 5 Million People who could be having Health Insurance right now at no cost to these states. Zero cost to these states. Other than ideological reasons they have chosen not to provide Health Insurance for their citizens. Thats wrong. It should stop. Those folks should be able to get Health Insurance like everybody else. Isaac from politico. Thank you, mr. President. Given all that you were just saying about the Affordable Care act, do you think it is time for democrats to start campaigning loudly and positively on the benefits of obamacare . Will you lead that charge . And on ukraine, you said in other situations, iran, for example, that the military option remains on the table even as talks go on. Is the military option on the table with russia . And if so, would that be through nato forces, through lethal aid to ukraine . I think ive been very clear that military options are not on the table in ukraine. Because this is not a situation that would be amenable to a clear military solution. What we have to do is to create an environment in which irregular forces disarm, that the seizing of buildings cease, that a National Dialogue by ukrainians not by russians, not by americans or anybody else, but by ukrainians takes place. They move forward with reforms that meet the interests of the various groups within ukraine. They move forward with elections and they start getting their economic house in order. Thats whats going to solve the problem. And so obviously russia right now still has its forces amassed along the ukrainianrussia border as a gesture of intimidation. It is our belief, and not ours alone, but i think broad portions of the International Community believe that russias hand is in the disruptions and chaos that weve been seeing in southeastern ukraine. But there is an opportunity for russia to take a different approach. We are encouraging them to do so. In the meantime were going to prepare additional responses should russia fail to take a different course. Weve already had an impact on their economy. That is well documented. It could get significantly worse. But we dont have an interest in hurting ordinary russians just for the sake of it. Our strong preference would be for mr. Putin to follow through on what is a glimmer of hope coming out of these geneva talks but were not going to count on it until we see it. And in the meantime were going to prepare what our other options are. With respect to the Affordable Care act, my point is that weve been having a political fight about this for five years. We need to move on to something else. Thats what the American People are interested in. I think that democrats should force arefully defend and be proud of the fact that millions of people like the woman i just described hey saw in pennsylvania yesterday were helping because of something we did. I dont think we should apologize for it. I dont think we should be defensive about it. I think there is a strong, good, right story to tell. I think what the other side is doing and what the other side is offering would strip away protections from those families, and from hundreds of millions of people who already had Health Insurance before the law passed but never knew if the Insurance Company could drop them when they actually needed it or women who were getting charged more just because they were a woman. Im still puzzled why theyve made this their sole agenda item when it comes to our politics. Its curious. But what i intend to talk about is what the American People are interested in hearing. Our plans for putting people back to work. Our plans for making sure our economy continues to innovate. Make sure were training people for the jobs that are out there right now an making better use of our Community Colleges and linking they will up with businesses and how were going to continue to bring manufacturing back the way we have over the last several years and how were going to put more money in the pockets of ordinary people. So if they want to if republicans want to spend all their time talking about repealing a law thats working, thats their business. I think what democrats should do is not be defensive but we need to move on and focus on things that are really important to the American People right now. David jackson. Yes, sir. Thank you. There are people who object to the law who said theyve had problems with the law and there are significant number of opponents of the law. I guess my question is what makes you think a sigma jort of the American People, of voters, will accept this law or are we destined to see health care as a 50 50 , red state blue state argument for years . I think youre mixing up two things here, david. You said there are people who have seen problems with the law. Thats not 50 of the American People. There may have been folks who have been affected in ways that they werent happy about it, by the law. That is a far smaller number than the millions of people who have been signed up. That doesnt mean we shouldnt be concerned about it. Thats an area where, as i have said to tamara, we should be open to other ways that we can make it even better. So thats objective facts and real problems out there. The other side of it is just polling. Right . Whats the general opinion of the law. Which is attached to general opinions about me or about democrats ond partisanship in the country generally. My view is that the longer we see the law benefiting millions of people, the more we see accusations that the law is hurting millions of people being comple completely debunked as some of you in the press have done. And the more the average american who already had Health Insurance sees that it is not really affecting them in an adverse way, then it becomes less of after political football, which is where i want it to be. This shouldnt be a political football. This should be something that we take for granted, that in this country you should be able to get Affordable Health care regardless of how wealthy you are. Now the larger issue about whether we can move past the polarization and sort of the bitter political debates between democrats and republicans of which obamacare is just one small part, thats going to take more time. But it is not for lack of trying on my part. I think that i speak for all democrats in saying we would much prefer a constructive conversation with the republicans about how do we get some stuff done and lets focus on some areas that the American People really care about. On jobs. We know that infrastructure would put people back to work right now and would improve our economy for the long term. Didnt used to be a partisan issue. Why arent we coming up with a way to make sure that were rebuilding our roads and our bridges and improving our Traffic Control system, theres no reason that has to be political. There really isnt any ideological disagreement on that. I guarantee you after this winter, if you look at the potholes that are the size of canyons all across big chunks of the united states, that people would like to see an infrastructure built. Lets get it done. How long before health care ceases to become a political football, you think . Couple years . Months . I think its hard to say. Its interesting, i spoke at the lbj library the other day. Most of us werent around to pay real close attention to those debates, or theyre pretty distant now in the past. Apparently it took several years before people realized, hey, medicare actually works. And it is lifting a lot of seniors out of despair and poverty. So weve been through this cycle before. It happens each and every time we make some strides in terms of strengthening our commitments to each other and we expand some of these social insurance programs. There is a lot of fear mongering and a lot of political argument and debate and a lot of accusations are flung back and forth about socialized medicine and the end of freedom. Then it turns out that its working for a lot of folk an we still live in a Free Market Society and constitution is intact and then we move on. And i dont know how long it is going to take but in the meantime, how about us focusing on some things that the American People really care about . All right . Thank you, everybody. President obama wrapping you up an impromptu appearance at the White House Briefing this afternoon. Two things of note about this news conference. First of all, he came out to tout a victory. 8 million americans signing up for Health Insurance via the market exchanges and yet the tone was incredibly defensive and still the questions from reporters quite aggressive on obamacare. Second, he was also asked questions about the situation in ukraine and russia. The agreement struck today in geneva with the russians. He was asked do you think it will work . Do you believe it . His response was, i dont think we can be sure of anything. An obviously cynical and doubtful tone about the agreement with the russians. President obama in an impromptu briefing at the white house. Lets get back to todays panel to talk about the moves in the markets. Larry, thats it. No the correction is over . We can go on . Not so easy look, todays market was about ipos, about earnings, also about geopolitical events. Market certainly may be in denial about some of those geopolitical events as we hear when we listen to the president right now. However, today is an early options expiration. It was about a long holiday weekend. I think we need to take a step back and see where the mark brings us next week with the earnings. I tried do my part today with the green dress. Im trying. Green for green shoots . I was focused on the financials. Thats a sector coming in to this year that everybody thought was going to do really well. Not so great other than perhaps Morgan Stanley. Even when you look at Morgan Stanley and where all the financials are trading, still a lot of them trading a at below book value. Id like to talk to guy atodaymy about this. Do you think that this is the new normal . We had these banks that were too big to fail. Are they now too regulated to grow . You know the answer to that question. Mcc, youve been beating this drum for a while. The answer is pretty much yeah. You look at Morgan Stanley, you got to give them a lot of credit because they were lucky or whether they are foresight, they realized the right business to be in and they got into this Asset Management in a big way with their advisory business and that knocked the cover all the ball. Something obviously that they are leading the pack with which is why i think the quarter was so good. Juxtapose with the goldman sachs, historically their big moneymaker is not there. There are big Financial Companies in the financial world. It still makes sense. Blackstone stock is still cheap but it is really hard for these guys and gals to make money. Might as well buy a utility. I have to jump in on the goldman Morgan Stanley debate. Over the last four quarters, Morgan Stanleys revenue has been about the same as goldmans, 33 billion. I never thought i would say that sentence nlg we were in a new regulatory environment. As i talked to hedge fund and other traders this week i asked them about the financials. My sense was there is finally a rotation into wells fargo which i think people were staying away from until somewhat recently. There is a rotation out of citigroup. I think the banamax fraud freaked people out as well as the stress test failure which it caught citi by surprise. B of a now on the brink. I think this might turn into a sort of wells Morgan Stanley story perhaps more than some other names favored today. Ira . I think that financialed are priced right now through a very complacent state. A lot of people are getting short volatility because theyve become very complacent and are totally focused on the Federal Reserve he. Yeah. Explain that. Why are we seeing longterm Interest Rates come down . That should be, a, bad for the financials because that means the yield curve is flattening, not steepening, which would be very good for them. At the same time, when you see a yield curve flattening, a lot of people worry about the economy. Ira . You know what, michelle . But the yield curve, if i tell you that the 2. 10, last may, may 1st, it was priced at about 145 basis points steep. Today we are back up to 2. 33. The curve is far from flattening. Yes, its flattened from december 31st of 2013 but it is still at a healthy steepness. I think that has to do more with the concern about the credibility of the fed and of course all global Central Banks at this time. Jon fortt, i want to get to Technology Stocks here. Is it done . That massive selloff happens. Everybody kind of gorges themself. They finally going to come back here . Im still a little uneasy. Ive been watching these tech earnings. You go down the line, theyre unimpressive overall particularly on the top line. Google, basically a revenue miss. Ibm, same. Intel did pretty well, pretty much hit the number but benefited from some xp refresh. Xp support is running out. That enterprise is refreshing there. Intel same. That consumer is still weak worldwide. Next week weve got a very important week one day in particular i want to point out. Wednesday, we have f5 qualcomm, apple, facebook and zynga. All on the same day. Thats all on wednesday. Were going to get a really good look at how big techs that are making money are doing, little techs that really arent making money are doing and grow stocks. I think once we get that look well have a better sense. Jon, i think you were being polite. These earnings were lousy. Look at ibm today. The bar is getting lower and lower as we get into next week. We call it the passover market because earnings are passing over everyone. Passover is supposed to be a good thing in this context. Intel wasnt laughing. While im looking for something punchy, jon, in this sort of value growth debate, isnt that really the story right now in technology . I did a story today on this sort of slackening in the growth areas, specific live the russell 2000 and certainly the nasdaq composite and how thats kind of taken a lot of people by surprise in terms of the sharpness of the twists and turns in the market as well as overall declines. In terms of tech, arent people going to favor some of these older line names . After king digital. After the evaluation on whatsapp. You said google had a lousy quarter. They still had revenue upward of 20 . I didnt say lousy. That was on ibm. Google and intel, not great. Yes, weve talked about this. Since midmarch we saw this what looks like a rotation out of some of the momentum names, into the big techs on the hope that, if the Global Economy kind of is coming back, the big techs will benefit. But these earnings, you have to wonder, is that really happening. You see some ipo action, some movement in those stocks because guys are hoping for growth there. Im not sure. There are times when these mose fum stocks we momentum stocks were so hot and people thought, if there was a pullback, id be getting in. Well, are you getting . A month and a half ago carol was talking about the vulnerability there and she nailed it. Can you get in . I think some of these names are pretty interesting. The bounce in netflix today was pretty cool. But then juxtapose that, chipotle today, that stock had a big quarter, looked like a big quarter, rallied early. Look at the way that stock closed. Those 13 account for sales, guys. Not just techs. American express. Dupont. Maybe investors are just so desperate for growth thats why they will buy anything that goes public that any tom, dick and harry can take public in this market. Wow. Guys, thanks so much. Catch guy and the rest of the fast money crew coming up at 5 00 p. M. Eastern time right after the closing bell. Regional bank bbmt mitting wall street earnings because of falling mortgage lending. Up next, chairman and ceo kelly king joins us for what this trend means for the entire banking industry. If you thought nsa spy leaker Edward Snowden was a hero, think again. Wait until you hear what you just asked russian president vladimir putin. Trust me, it will get your blood boiling. Back in a moment. Back in a mome. vo you are a business pro. Maestro of project management. Baron of the buildout. You need a permit. To be this awesome. And you. Rent from national. Because only national lets you choose any car in the aisle. And go. And only national is ranked highest in car rental Customer Satisfaction by j. D. Power. aaron purrrfect. vo meeeow, business pro. Meeeow. Go national. Go like a pro. Today is thursday today, we greet you. Treat you. Care for you. Today, you can come to Cleveland Clinic for anything, everything or just to get that thing checked out. Big, small, and yes, the best heart care in the nation. Its here everyday, for everyone. Thats the power the power, thats the power of today. Cleveland clinic. Call today, for an appointment today. Without standard leather. You are feeling exhilarated with frontwheel drive. You are feeling powerful with a 4cylinder engine. [ male announcer ] open your eyes. To the 6cylinder, 8speed lexus gs. With more standard horsepower than any of its german competitors. This is a wakeup call. Work with equity experts. Who work with regional experts. Thats when expertise happens. Mfs. Because there is no expertise without collaboration. Good morning, leslie and ted. Morning, everybody. From our perch, ow crows nest, our aeri, if you wish, above the floor of the american Stock Exchange. Well be here all day long trying to keep an eagle eye on your money on stocks, bonds, gold, oil, the dollar and the news that makes them worth more or worth less. Before there was bob pisani, there was arthur alford. Thats from the very first day cnbc was on the air live report rg from the stock market. It is so great to be here on our 5th anniversary. It has been another busy day for our earnings today on this anniversary. Well begin with news that highfrequency trading firm virtue has delayed its ipo. It was scheduled for this month. Meantime, on earnings news, a weaker than expected First Quarter earnings. Conference call will be tomorrow but it did cite lower collections due to the poor weather. Stock right now getting hit off fractionally. Amd also out with earnings after the bell. Reporting better than expected twocent profit of better than expected revenue. The stock currently trading higher been 3. 25 . Selectcomfort revenues came in a bit higher. Mattressmaker currently trading comfortably up about 2 . Well end with bb t, reporting weaker than expected Bottom Line Results earlier in the day. This on decline in revenues. However, its profit was up. 39 from a year ago. The stock closing out down about 3. 5 . Michelle . Joining us now exclusively with more on bb ts earnings, kelly king. The chairman and ceo of bb t. Mr. King, thanks so much for joining us. Glad to be with you, michelle. Lets talk about mortgage lending. It was the weakness in the report today. Explain whats going on there. Well, so a year ago and really 12 months prior to that we were all experiencing a huge surge of refinancing as rates had come down. Everybodys been refinancing. Obviously 10year gone back up basically 100 basis points so refinancing part of the business has essentially gone away. And purchasing while up percentage wise a lot and while the housing coverage is sound, it is not nearly enough to make up for the loss of refinancing activity. So it is just a matter of restructuring and restabilizing the base level of volume which i think will be settling down now in the next quarter. Should we be concerned about that, purchasing not coming up, as much as i mean yes, Interest Rates have gone up. But what do you get for a 30year mortgage right now . Interest rates arent that high. Shouldnt housing be even vo stronger . Personally, i think it should. But i think one thing thats going on, frankly, there are a lot of people who are still concerned about their jobs. The economy is better but it is not robust. Frankly, a lot of young people today are rethinking Home Ownership versus rental. They saw their parents who many were baby boomers who spent a lot of time building up net worth in their houses and it all went away overnight. A lot of people are thinking about that. I think it will settle down and well get back to more normalcy but thats part of the drag on house purchases right now. We spent a lot of time talking about the yield curve. If you dont know what the yield curve is, when it is steep it is really good for banks and it usually means that the economy is improving but lately the yield curve has been flattening. Thats bad news for banks and it makes some people worry about the economy. What do you think is the message in the yield curve . Well, i think the yield curve is reflect iing kind of a slow economy that weve been through. It is certainly much better than it was. We went through a really horrific economic correction and it scared a lot of people. People are still reticent to go out and invest and expand their plants and add jobs. There is still a lot of concern about regulations. So while it is improving, it is not robust. So we dont see the recovery now that weve seen in past experiences. That causes some people to think the whole world are has changed. I think thats overstating the case. I think it is just a matter of it was a deep, deep cut, if you will, deep wound. It takes a while to recover. Clearly when i talk to people, things are recovering. I said middle of the last quarter back in the Fourth Quarter that i think we really are seeing a pivotal change in Business Peoples attitudes and so i think you are getting ready to see Business Activity ramp up. Are you seeing more lending and more commercial lending . We are. It was slow the first part of the First Quarter but toward the latter part of the First Quarter we saw a real strong increase in activity. Cre lending, cri lending, auto lending, Equipment Finance lending. So it is definitely picking up. Moods are better. Youre going to see i think an increase not a dramatic surge but an increase as we head into the last three quarters of this year. I just saw something a couple of days ago. The age of equipment and buildings is like older than its been since like the 60s. There is a huge pentup demand of people who want to invest in their businesses. I saw something yesterday, Business People just responded to a survey and said they are going to hire 8 more College Graduates this year versus last year, as they said 2 . Cant wait for those data points to actually play out in the economy. Thank you so much. It is really a pleasure to have you on. Thanks. Happy anniversary oh, thank you. Its been a lot of fun. How does 58 million for 15 months of work sound . Thats the golden parachute that yahoo gave its ousted chief operating officer. My next guest says that kind of Decision Making shows why ceo marissa mayor who we are sewing here may not be the right person for the job. Can you guess who this cnbc original is . This was him filing his report on cnbcs first day. And we want to know where you think the dow will be 25 years from now. Your best tweets are coming up. Ive always kept my eye on her. But with so much health care noise, i didnt always watch out for myself. With unitedhealthcare, i get personalized information and rewards for addressing my health risks. But shes still gonna give me a heart attack. Thats health in numbers. Unitedhealthcare. [ male announcer ] with nearly 7 million investors. Oh hey, neill, how are you . [ male announcer ]. Youd expect us to have a highly skilled call center. Kevin, neill holleys on line one. Ok, great. [ male announcer ] and we do. Its how edward jones makes sense of investing. [ male announcer ] help brazil reduce its overall reliance on foreign imports with the launch of the countrys largest petrochemical operation. When emerson takes up the challenge, its never been done before simply becomes consider it solved. Emerson. Tom, what do you think about all that . Is the economy really slowing down at this point . Certainly the Economic Data that we saw on friday and over the past several days would indicate that the economy is indeed slowing and i think the bond market may be interpreting that correctly but perhaps a little bit too quickly. That was abby cohen. I think the hair has got an a lot smaller. She as totally changed her look marvelous, darling. With a hair that big 25 years ago, i never could have gotten a job at this network. She still looks that way right now. Yahoo s ceo marissa myer has been making headlines for many of her deals, including her hiring of Enrique Castro as yahoo s coo. After 15 months though he is out an guess how much he is getting paid 58 million. For that short period of time certainly hes not the first person pushed from the top job to leave with cash to burn. Mary thompson has the gallery of golden handshakes. I guess nice work if you can get it but not do it. Bill mcguire of United Health group was with the company for 15 years but was fired in 2006 for improperly back dating stock options. He left with 286 million. An annualized 19 million. Home depot gave bob nardelli a bundle when he they hired him for ge to make up for what he left on the table at the conglomerate. Then they fired him after six years because lowes was eating home depots lunch. He took home 222 million. But call it a case of more saving, more doing. Since then the stock is up 100 percent. Pfizer ceo socked away millions in Pension Plans and deferred payment plans so even after he lost billions on acquisitions under his watch he walk away with over 180 million. Some 38 million for every year the company was losing money when he was ceo. Now Merrill Lynchs debacle in the financial crisis cost stan oneill his job but not a penny when it came to his deferred pay and stock. He left with 161 million. The company was later sold to bank of america. Lastly, michael ovitz, the super agent, was hired to leave caa behind and join disney as ceo. His 15 months on the job was more adventure land than wonderland and he was let go with a 130 million a year severance package. Michelle . Back to you. Makes enrique decastro look cheap. The first guy wasnt term napted f terminated for cause. That options back dating case he was found to have been affirmatively involved . Pardon . Im raising question about mcguire and why he wasnt terminated for cause. Sounds like his behavior was really questionable. Right. Youd think that that ultimately it is what the companys decision if they do that. It is how they decide to terminate them and then depending on the termination, the type of termination the ceo or whomever has fired is allowed to leave with certain savings accounts or Pension Plans or golden handshakes, pare chutes, whatever they have in the contract already. Again, given the options back dating case one would wonder. I should say that things have really changed in the compensation arena since then. Whole idea of a golden parachute which is really associated with a company being taken over and a ceo is then pushed out at that time, they are pretty much exed out of comp deals now. Mary, thanks so much. What she laid out raises further questions about myers deal making and leadership at yahoo . Bethany maclean of vanity fair wrote a lengthy profile for the magazine. Also the cofounder and ceo of diamond link. Bethany, you wrote the profile on her. Does she have the management skills to do this . What explains this fiasco with decastro . The short answer is that we dont know. You have to remember she was a product person at google. She didnt run a business there. And her management skills coming out of google were questionable. She was regarded as a good manager of junior people but a terrible manager of her peers. One person described her style to me as antidiludian. She didnt know enrique decastro. She brought him in and the rapid hiring and firing of him is a big black note. I would say so. Larry . Obviously what was a terrible move. Shes responsible because she brought him in and the package that he got here is ridiculous. Shes made a lot of bad moves. It started with the tumbler acquisition which was terrible. We saw in the earnings they dont even want to talk about it and stay away from it. Whole issue with yahoo right now is they got to get into mobile and we dont even hear how much they have the percentage of mobile. We hear maybe it is 10 or less. So it is a big problem here. She was put in to take this company to a whole new level and the move to mobile. She brought in this coo personally who she had to get rid of in 15 months with high pay, bad acquisition of tumblr. We saw a 2 growth in the earnings call. I dont think shes going to be in here too much longer. The stock is higher and yet a lot of metrics are still bad. I actually would take a little bit of the other side. Part of why this package for decastro was worth 58 million is because the stock is higher since he came on board. When marissa myer first came on board there were Big Questions about whether anybody was even going to want to work at yahoo anymore. Bringing somebody over from google, somebody else besides herself was seen as a coup. Since then theyve been able to bring in a lot of talent. If you think of part of that as being a Marketing Campaign expense to get them to hire talent. That all said, their mobile numbers are up but that doesnt mean you can monetize mobile immediately. Youll need some time. A possible acquire is here . I dont know he about that. I think jons point is exactly right. There are some pieces of good news here. Nonetheless, overall, yahoo s business is still shrinking relative to its competitors. It grew a little bit but yahoo is still losing share. If youre becoming less relevant, you are becoming less relevant. It is not a good way any way you spin it. He didnt create that value. Thats the whole point. He is being compensated for value that he shouldnt be taking credit for. It is not the money, it is the value creation. They say the stock value changed it. It still would have been 17 million which is still far too much for somebody thats been there just back to decastro for one moment. One thing i loved about bethanys story on myer was her discussion of per hernl management skills or lack thereoff. Ross levinson she wanted to stay on for a time at least under her but there was a situation where she kept him waiting so long for a meeting that he eventually got frustrated not saying thats why he left but thats the kind of thing thats gone on with her. That is absolutely the kind of thing thats gone on with her. Lady and gentlemen, thanks so much. Panel is sticking around for the rest of the show. When people hear the name Edward Snowden they usually get fired up. Today no different. See what the fugitive intelligence leaker did now that has him lighting up cnbc. Coms hot list. Thats next. And besides cnbcs 25 years ago you were probably watching the cosby show or rose ann. Those were the two top rated tv shows this week in 1989. More on our anniversary with another cnbc original, scott cohn. Geico motorcycle. See how much you could save. Tdd 1888648602121 tjust waiting to be found. Ties tdd 18886486021 at schwab, were here to help tdd 18886486021 bring what inspires you tdd 18886486021 out there. In here. Tdd 18886486021 out there, tdd 18886486021 there are stocks on the move. Tdd 18886486021 in here, streetsmart edge has tdd 18886486021 chart pattern recognition tdd 18886486021 which shows you which ones are bullish or bearish. Tdd 18886486021 now, earn 300 commissionfree online trades. Tdd 18886486021 call 18886486021 tdd 18886486021 or go to schwab. 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It has exactly what i need for half of what i thought id pay. And i dont need to be online for it to work. It runs office, so i can do schedules and budgets and even menu changes. But its fun, too with touch, and tons of great apps for stuff like music, cause a good playlist is good for business. I need the bosss signature for this. Im the boss. Honestly i wanna see you be brave nsa leaker Edward Snowden in the news again today. Thats just one of the many stories heating up y thbs. Com. Allen wastler rounds up the hot list. Right now we are leading with a story, retail analyst by the name of robin lewis put out a note suggesting maybe amazon should buy sears. The story about some insider buying and options being a sift is on fire. Number two is about the Democratic Campaign donator. The Hotel Magnate from hampshire hotels. People have been very interested in that story. Its gotten 40,000 reeaders already. But putin this morning with his question and answer peertd where he did say he might shut off gas supplies to europe, the snowden factor is giving me what i call irony clicks. Snowden called up, quizzed president putin about does russia really do surveillance on people, putin said no, we dont really have the money or technology and it would be against russian law. I have a wave of irony going into that. That has 41,000 clicks already, michelle. Im not surprised the snowden thing would light up the panels. Thank you so much. What do you guys think about this . Edward snowden asking when i went to sochi we were warned. Russian law says they can monitor your phone calls, they can monitor your phone, they can do anything they want. Yet putin tells snowden today, oh, no, no. Thank god he said thank god our laws prevent that. He also treated snowden like sort of a bro, right . They share we worked in intelligence. Right. We can speak the same language. Did this actually happen . Are you sure this isnt a big episode of maybe well fine out jimmy kimmel orchestrated this whole thing a couple days from now . Privacy is a slippery slope. But this is not the way necessarily to handle those issues. Thats whats offensive to people. Does this finally determine that he is a traitor . I think it goes a long way toward that. Its as outrageous. You think about snowden trying to sort of manage his brand, i guess, showing up on the big screen at south by southwest trying to argue to the Tech Community that we need you to take up this cause. Here he is basically putting out a press release with putin for russia especially at this point when we see whats going on there . It is sickening. I thought it was pretty damming. The south by southwest you could argue could fit maybe the profile he was trying to get away with hes furring his own personal interest, not helping security an privacy issues for the greater good. Anecdotally when i talk to people just in conversation, what do you think about the issues that snowden exposed, and does it bother you. Even lawyers, even Defense Attorneys who work in the white collar area and are bothered by wiretaps, for example, that the government uses on their clients, greatly bothered, theyre not bothered by metadata searches. They feel like if it was in the interest were talking to the yink generation, the millennials are incredibly bothered by it. First of all, they dont believe it is just metadata. But what can you do with that metadata will be used against you for political purposes is what well be seeing out of washington, unfortunately. When you werent watching cnbc back in 1989 you were likely listening to madonna. 25 years ago the original Material Girl topped the charts with like a prayer. Up next, scott cohn looks back on 1989 and the launch of cnbc. We asked people a question, how much money do you think youll need when you retire . Then we gave each person a ribbon to show how many years that amount might last. I was trying to, like, pull it a little further. [ woman ] got me to 70 years old. Im going to have to rethink this thing. Its hard to imagine how much well need for a retirement that could last 30 years or more. So maybe we need to approach things differently, if we want to be ready for a longer retirement. If you havent thought about your taxes until now, you may already have waited too long. U. S. Airways and america west have sealed the deal. The new company will be called u. S. Airways. You look good, dude. There are some memories from the last 25 years. That was me. My hair was a little shorter and scott, his hair was a little longer. Scott is a cnbc original for 25 years. This was his very first day that we showed you airing on day one about how to avoid being audited by the irs. Nothing has changed. How to file for an income tax extension. We should make a point that is an old pack eat. Exactly. I brought this along because i found this. Show it to the camera here. I found this in a box in a garage. Did they give these out. After the first week that we went on the air. Hold it up again. We werent allowed to use the peacock back then. Because the affiliates were not happy about nbc starting a kable channel. Whats the going price on ebay for that tshirt . Im not selling this. I earned this. I earned this. Believe me. But your point goes to the fact that people were worried about cable and we would tarnish the brand. This was the foresight of bob wright, of tom rogers who knew that nbc needed to get into cable. And they did it against all odds and now i guess so did all of us. And still well managed because we have killer market share. Just saying. Do you think any of your kids know the difference between broadcast and cable . My kids dont know what broadcast is. They think you should be able to watch anything at any given time. Just put it on. Get it on the ipad. You too. What are you talking about, daddy. My oldest kid was an infant 25 years ago and now a brand manager in hollywood and doing great. He grew up with cnbc, another son along the way who is also doing well. Its kind of like, you know, this is a big chunk of life here. Yeah, it is. Whats the biggest difference today from 25 years ago. I think its the pace of things. Ill tell you what, being in this building, the idea of getting a camera in this building 25 years ago and we tried was near impossible. You could get in for a few minutes to shoot the closing bell. But the idea that this is all available and transparent i think owes a lot to cnbc. The Trading Floor is not the same as it was. They got smart that this would be good advertising for them and they didnt believe it at first. That took some time. Back then High Frequency trading made getting carpal tunnel, right . Right after the crash of 87. Right. The big villain back then was program trading. Everybody was thinking that the markets were rigged. Full circle. We made no progress. Cnbc shot at the american Stock Exchange which is no more. Now we have new york. And what was new was the ticker. This technology at the bottom was revolutionary. You didnt have to live your house to see the price of the stock. Fnn had it. There were some local channels. There was a program called the stock market observers in chicago that had a ticker. It was a commodity. When cnbc replaced fnn with a much inferior ticker, the outcry from viewers any time we touched that ticker was overwhelming. Scott, this was so fun. I have enjoyed working with you so much. You have no idea. All right. A quarter of a century has passed for cnbc. Back then the dow was in the 2,000 neighborhood. Where is it going to be 25 years from now . We have the best tweets of your responses coming up next. Ron im never alone with scottrade. I can always call or stop by my local office. Theyre nearby and ready to help. 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I tell people its for the climate. The conditions in new york state are great for business. New york is ranked 2 in the nation for new private sector job creation. And now its even better because theyve introduced startup new york dozens of taxfree zones where businesses pay no taxes for ten years. Youll get a warm welcome in the new new york. See if your business qualifies at startupny. Com for 175 dollars a month . So our business can be on at ts network yup. All five of you for 175. Our clients need a lot of attention. Theres unlimited talk and text. Were working deals all day. You get 10 gigabytes of data to share. What about expansion potential . Add a line anytime for 15 bucks a month. Low dues. Great terms. Lets close. New at t mobile share value plans. Our best value plans ever for business. We are celebrating 25 years at cnbc. We wanted to know where do you think the dow will be 25 years from now . The s p will be at 5,000 and the dow at 55,00025 years from now. Gary tweets honestly hope we stop talking about the dow and use an index based on something less a by trar than price weighting. Lets take a look to next week. We have got some very big ticket earnings out. Getting results from netflix, apple, facebook, amazon, mcdonalds, verizon, at t and many more. Were going to get a look at the profit picture in the united states. After i watched myself devour a box of marshmallow peeps, some of these momentum names and tech names. Monday i will be in washington watching Hedge Fund Managers duke it out over the rights as bond holders. Thats right. The battle. Awesome. John. Wednesday apple and facebook. Cmon, that is the the opportunistic, take advantage to get some bargains out there. Dont believe the hype, there are deals out there for you. I want prepared for what im watching market wise but in boston, the marathon the first one since the tragedy one year ago. Well have coverage on that and talk about things affecting you in other ways. Markets are closed tomorrow. You wont see us here. Thanks for joining us today. That does it for closing bell. The markets are closed tomorrow for good friday. Well see you monday. Fast money is next. Fast money starts right now. Live from the Nasdaq Market sight in new york citys bright lights of times square with cnbcs melissa lee. The traders tonight are tim, the ambassador seymour. Dan nathan