Transcripts For CNBC Closing Bell 20150507

The changing of the guard alibaba. The company having its best day since the company went public but will new blood help turn the stock around for the long term. Well ask that question. New developments you just heard in mcdonalds plan to turn itself around. Yes, kale is part of the idea. The new ham burglar. Even james franco has been weighing in on the role mcdonalds played in his early career in life. Cant wait to learn more about that. We are watching the markets though with just an hour going into the close. Stocks are near session highs. They opened in negative territory this morning despite the fact that jobless claims came in near a 15year low. You are looking at the dow up by 109 points. S p up by 10 points. Good for. 5 prp the . Interest rates and the european moves have been a big story. Oil down hard today, pushing transports higher. Lets get to our Closing Bell Exchange today. David kudlow from Mainstay Capital Management back with us, cnbc contributor Heather Hughes from sun america funds, dion martin from moneymorning. Com. And Rick Santelli from chicago as with el. David, you have an interesting prediction prediction. I think in the 10year number comes in a lot stronger than expected we could see the 10year thats been running up for several days now spike even higher. Maybe as high as 2. 5 . But i think that the moment tum weve had in the 10year even with the strong jobs numbers will just be temporary and the 10year is going to pull back from here. There is a point where we will go to 3 yield on the 10year treasury but we dont think were headed there now even with all the momentum behind it now. There is sovereign debt in europe thats still going to be very competitive with the 10year. Were thinking about the jobs number. Thats going to be in focus tomorrow. It is all anyone can really talk about going into the close today. Expectation is roughly 230,000 jobs but weve also been hearing for weeks the First Quarter was a blip that there will be a Second Quarter read. April is the first month of that. What happens if we get one thats far stronger than expected . Well i think weve really gone into a new cycle where everything of course is figuring out how it is going to affect the fed rate hike thats to come at some point in the future. Weve sort of hit a goldilocks market where everybody doesnt want news thats too good or that it be too hot encourage the fed, they dont want thats too bad that would bring the markets down on its own. So theres sort of a sweet spot in the middle. If we get a huge jump as david said, i think it is going to become a negative on the markets and theyre going to be worried more about the rate hike than what it says about the economy itself. Rick what do you think . Is it possible to get 2 1 2 . What is the market telling us right now about their expectations with the feds when you consider whats been going on that runup in yields recently, the stock market that had been suffering until today. Whats going on here . Well first of all, to the question about where rates could go, i think we could have a very asymmetric employment report response in Interest Rates. Meaning if we get a strong number we could hit 2. 50s, 2. 60s. The issue is we dont know. We could see an october 15 type move on a strong report only to settle down the way it did between 5 00 in the morning before we came in where yields were 2. 31 here. 70something basis points in bunds, only 20 come back and go very sideways. I think in terms of where were at, i think we all need to take a step back. The dow and s p are either little bit below or a little above 1 with regard to where they settled last year. 10year note yields are sitting exactly where they settled last year. Yes, we have volatility. We have uncertainty. We dont have true price discovery. But in the end for the first four months of 2015 we really havent gone anywhere but the path of Interest Rates on how they got back down has many traders nervous. Even if we get a 200,000 number or prirnt is that some fed members are saying that that i be good enough to raise rates a quarter point in september rather than waiting until next year. So it is just debatable about whats good or bad. Of course we are still looking at the Participation Rate and the wage growth. Weve had a slight uptick in wage growth which is a positive sign but would 200,000 a month be enough for the Federal Reserve and the markets to have concern again of the fed raising rates. I personally think rates have been too low for a long time. Real issue is the time they picked to normalize was the absolute worst time as yields went negative in europe and all the volatility. But to answer your question i think the fed could play this any way they want. They could put the goal post anywhere they want. One thing im certain, 6 1 2 years after the crisis no matter how many jobs we get tomorrow, i dont think rates should be at zero. Thats something the fed is dealing with. We heard from fed chair janet yellen yesterday. She seems to think that equities are generally getting fairly rich. I just wonder when when we think about where the markets could go from here rates are basically where they were a year ago, s p, yearend targets for most of the strategists on the street at the high ends theyre 4 or so from where we are right now. It does seem like were going up, were going down but were still in a pretty tight range. I think we stay in that trading range. I think this will be one of the weakest years for the s p 500 index in this sevenyear bull market. Probably only up 4 or 5 at the end of the year. Maybe weaker than that. We just have were running up against valuation issues. Were in an earnings trough now. Fed rate hike. Opportunities abroad that are baltimore attractive. So i dont think there is a lot of up side for the s p 500. I think thats why investors need to look beyond the s p 500 for opportunity. The indexers are just not going to do well this year. All right. D. R. , the other feature today we mentioned earlier the price of oil down 3 plus today. We had some other guys yesterday telling us that maybe oil had hit its peak for a while here when it got above 62 on wti. What are you seeing there and what impact do you think that has on other markets as well . Well i think those guys will probably and gals that may have you that input, bill were probably read region my notes because thats exactly where i am. I think that 62 plus that we got we got a port closing in labor ya that got everyone temporarily shook up. But were still despite rig counts dropping precipitously here in north america. The production is still remaining high. Its finally leveled off for just a week or two of a climbing every week for about five months. So i think that the new normal of these Lower Oil Prices is going to continue to be a little bit of a drag as we dont see the employment coming back exactly where we want. And like david just said wed been in a trading range. And since the first week of february, the s p has been in an 85point box. Cant get above it cant get below it. But we are stuck at the top of the charts so we have to remember that. Not get too bearish just yet. But we are up 44 since the march low. In terms of a range, were up over 65 and we were at 44 just two months ago in the blink of an eye. So that is quite an uptick as far as short oil and long dollar trend. Has that reversed thats not true today. But that is a big uptick in oil. It went down fast and its come back fast. Thats for sure. Yes. Irrational to the up side as well. We got to go d. R. We got some other news breaking. It is one of those kinds of days. Thank you all for your thoughts on todays market action. Appreciate it. We want to get to the story on yelp. Shares soaring on that report. The Consumer Review website may be exploring a sale right now. It was a wild scene when that story broke just a couple hours ago. From yelps post at the nyse when that story came out, bob pisani is actually there now with the details. What was a pretty wild day of trading for that stock, bob . Reporter it was just a couple of hours ago. Poor mike. s been typing his finger off the last couple of hours. This is the designated market maker. Michael here were up 26 but thats not the real interesting thing. This is the volume. 26 million shares. Yelp would normally do 3 million shares a day. Were eight times that and it is only 3 00 in the afbl. A wild day of trading. I covered the ipo for this company right here a couple years ago. Early 2012. It went public at 15. Then it rocketed to 100 oh about a year ago. It was 101 but from there slowly to the down sides. They had a big miss two weeks ago on their earnings. Their guidance wasnt very good. They have three basic problems right now. One, the ad biz is continuing to slow down. They have lots of competition. Number two. And number three, it is expensive. Do the maths on the earnings. It is 90 times current earnings. Im not even talking about the future, next years earnings. Thats a major company. Investors tend to start looking for companies that are doing a little bit better and certainly got a better pe profile. Right now were going on up 26 on yelp. Well see how it ends. Thank you. So the question then becomes who would be interested in buying yelp at this point . Josh liptons been talking to analysts. He joins us now with some ideas there. Well bill so if these reports are true and yelp is exploring a sale then you are right. There are two immediate questions, bill. Why would yelp be an attractive target, and who would be interested in buying this company . Financial analysts who cover yelp say it is an attractive target for a company that wants a piece of the local u. S. Ad market. Remember thats what drives 97 of yelps business. As of last quarter, about 90,000 Small Businesses were paying yelp an average of 350 per month to advertise on the site. This is a company thats still growing fast. Yes, revenue did miss analysts forecasts last quarter, but remember, net revenue still did jump 55 . Even with todays move that stock is still in the red this year and thats because the growth in the number of local businesses paying yelp has slowed. So in q1 last year it was growing at 65 . Q1 of this year its 35 . Lps also the International Side of the business is still a very small part of the overall business. The growth racete overseas has disappointed the street. Still the local ad market is Strong Enough that yelp could find a number of potential buyers. Google did make an offer for yelp preipo for about 500 million. It was an offer yelp rejected. Complicating that bid though remember there is bad blood between yelp and google. Yelp says google favored its own listings in search. Other suitors scully mentioned, amazon microsoft, maybe cully told me he puts the odds of a yelp sale within the next four months at 56 . Thanks josh. 45 minutes to go before the closing bell. Still all major averages steadily in the green after falling the last two gaze days. Todays trade has wiped out all of that negative activity. Among the gainers today, alibaba shares soaring after that surprising ceo shakeup and a big jump in revenue during its earnings call. Is it time to get back on the baba bandwagon . Well follow that story next. And voters headsing to the polls in the United Kingdom in what is shaping up to be one of the closest and most important elections in years. The outcome could have a huge impact on the Global Markets and on your money. That story is coming up later on the closing bell. When a rewards card is designed to sync with your life it gets talked about. So you can live the way you live, and enjoy all the rewards. Chase sapphire preferred. So you can. New york state is reinventing how we do business by leading the way on tax cuts. We cut the rates on personal income taxes. We enacted the lowest Corporate Tax rate since 1968. We eliminated the income tax on manufacturers altogether. With startupny, qualified businesses that start, expand or relocate to new york state pay no taxes for 10 years. All to grow our economy and create jobs. See how new york can give your business the opportunity to grow at ny. Gov business. After two big down days, we have a rally day on wall street with the dow up 100 points. Thats just off the high of the session. The s ps up nine. Nasdaqs up 29 points. Thats the best gainer percentage wise. Oils been down sharply. Transports have been strong as a result of that as we all await the jobs report tomorrow. Oh yes. One of the big movers of course today, alibaba, the company reportings earnings this morning and the stock rising, up nearly 8 as the chinese ecommerce giant named daniel jong its new ceo. Cnbc caught up with him earlier today. He talked about the companys future in the important mobile space. Today more and more consumers in china use mobile to do Online Shopping so on the other hand more and more merchant start to spend marketing dollar on the mobile side. So based on this we believe the taper on the mobile side will continue to increase and we are confident that they can approach that on pc and even higher. Lets talk about alibaba getting reaction now from the cbo of ansins worth investment strategy. What do you make of the timing and the reason behind the change of ceos there at alibaba . Bill, thats a great question. I think it certainly caught a lot of people off guard. Is it a good or bad move . I think it is a smart move to get new leadership at the top. It does raise some flags. It is only two years after they did recently name the ceo previously. So is it a trend . Will we see new senior managers every few years . I dont think so. I do think there is a proven track record. I do think that jack ma wanted to shake things up. Timing yes, a little suspicion but again they delivered a really good result and it is time to do that and deliver a transition change. The Company Still has two key men the a the top. Thats jack ma the founder. A lot of people make the distinction between the title of ceo in china and how it is maybe less strong than it is here in the u. S. What distinction would you make about that . I think thats a great point. I look at this a little bit differently. It is a little bit like Vladimir Putin putting in somebody different as the president in russia . Who really cares because we all know who is still running the company. I look at mr. Zhang just ensuring the cost controls are in place as growth starts to deflate a bit in the upcoming quarter. Is mobile as important for alibaba in china as it is for so Many Companies here in the United States as they rush to that area where so many u. S. Consumers are . I would say it is more important. China is a mobilefirst market. We came out with a new piece of intelligence that showed 98 of all highend shoppers are on smartphone devicing and buying increasingly on their iphones and samsung devices. The challenge is it is a lot more challenging to modify with the same Revenue Growth. We had see 352 Revenue Growth on mobile. Monetization rate might not be as high but does that give you a promise about holding alibaba shares for the long term. The key is absolutely mobile. I agree wholeheartedly with those previous comments. I think in the future we need to see that monetization rate improve. I think it will but in terms of where we are right now, the percentage of revenue, it is a mobile market. It is going to be driven by mobile. If you look at what happened in the rural u. S. In the 50s and 60s that will never happen in china. Meaning walmart built out all these Super Centers and you are brick and mortar across the country in the u. S. In china youll have a lot more investment from the tier 3, tier 5 cities. Alibaba is the largest platform. J. D. Com will also do very well. Mobile monetizeation should very much improve. We know you hold those stocks. How do you play that . Im a big bull on china ecommerce. Were in such early stages of the whole growth cycle and i think its not a zero sum game. Theyre both going to be winners. If you look at the two of them theyre very different although there are some similarities. J jd. Com does have more fulfillment centers. Alibaba, you have a wild card on some really interesting growth aspects. If you look at the transportation, they do have the share of an uber competitor. That could be very significant, too. Very different but i dont think it is a zero sum game. I think they both win. We will see. Good to see you both. Thank you for joining us today. Heading towards the closing with 40 minutes left in the trading session. The dow is up 90 points. S p up eight. The nasdaq up 26. Financials and tech some of the best performers today. Hubspot reported its Third Straight Company Revenue jump since the stock went public you will 18 . Whats driving this growth in the ceo is here exclusively to talk about that next. Im sure he lass a big smile on his face. Mcdonalds new turnaround plan apparently lets see. Its got kale the new ham burglar and actor james franco as the fast food giant been standing too long over the grill . We have the story on that coming up on closing bell. 40 of the streetlights in detroit, at one point, did not work. You had some blocks and you had major thoroughfares and corridors that were just totally pitch black. Those things had to change. We wanted to restore our lighting system in the city. You can have the greatest dreams in the world, but unless you can finance those dreams, it doesnt happen. At the time that the bankruptcy filing was done, the Public Lighting Authority had a hard time of finding a bank. Citi did not run away from the table like some other bankers did. Citi had the strength to help us go to the credit markets and raise the money. Its a brighter day in detroit. People can see better when theyre out doing their tasks, young people are moving back in town the kids are feeling safer while they walk to school. And folks are making investments and the community is moving forward. 40 of the lights were out, but theyre not out for long. Theyre coming back. Welcome back to the closing bell. Markets have been paring their gains as we head into the close. Dow is up by about 86 points or. 5 . Still though quite a different story from being down 100 points at one point in premarket trading. Choppy for the first couple hours. Then the european close and here we are right now. Quite a turnaround. A lot of movers for dom to round up for us. Activision Beat Estimates on both the top and bottom lines. The companys also raising its fullyear forecast as well. Those shares are up 5 . Shares of price line under pressure down 4 . Earnings and revenues topped estimates but its outlook is a little bit more on the weak side. Company blames, among other things, a stronger dollar. Amazon shares climbing almost 2 . The firm says price estimates are too low and its web Services Business is underappreciated. Back to you. Thank you. Google saying more searches are now taking place on mobile devices than on desktops in ten countries around the world, including the u. S. And japan, this after the Company Announced an updated search algorithm to favor mobile optimized websites. As the mobile strategy becomes a top priority for businesses, how is Marketing Software company hubspot adapting . The stock is certainly surging today on the back of strong earnings yesterday after the bell. Stock up by about 19 . Joining us now in an exclusive interview, hubspot ceo brian halligan. Thanks for joining us. We always try and parse the appetite for corporate spending where theyre spending it and where theyre getting the most effective advertising and marketing. Where are you finding that for your clients . Were finding that companies are starting to discover that the traditional marketing playbook of doing lots of ads, cold calling ka peoplepeople, gosh it just doesnt work anymore people are immune to that. We match the way you market the way people actually shop and buy stuff. It seems to be working. I was just looking at the statistics here. Lets address the elephant in the room here. Youre up 18 today. Yes your revenue gain was 50 . Well its 58 but it is 58 . Oh, we digress a little bit there. This is your thirdbest trading day since the came public last october. Secondbest day was february 13th. Did you announce earnings that day as well . We did. Okay. Are you sandbagging wall street by underguestimating . I think customers are doing well, word of mouth is spreading and this idea of marketing a new way, using hubspot to do it is spreading. And i think the teams executed pretty well. Hubspotters are doing a great job, excuses been good and its coming together nicely. Were very happy about it. Whats so interesting is that we have seen social media names just fall off a cliff. Last week yelp twitter, linkedin all saying advertising was soft and theyre trying to figure out how to provide the right mix for their customers. Social is a huge component of what you do. Are they getting it wrong . What are you doing right . I dont think theyre getting it wrong. Think the value of an impression seems to be going down. People arent clicking on those ads as much as they used to. Ads still work. We not only do advertisement where you are throwing money at marketing, we think marketing is much more today about the width of your brain than width of your wallet. How do you pull people in with your own content versus advertising on somebody elses site. Whats. Your guidance for the next quarter . Are you sandbagging some more . I would never do that to you, bill. Never. We have nice guidance for q2. In the year we feel really good about where the business is at. Brian halligan ceo of hubspot. Sumner redstone a name we havent heard in a while. Executive chairman of both cbs and viacom weighing in on Succession Plan is i have always said i believe strong and professional management and appropriate cough pratt governance. Decisions about who will succeed me as chairman will be made by the companies, not any individual. Despite reports to the contrary such decisions have not been made. After my death my ownership trps in the companies will be overseen by a group of seven trustees who will make fiduciary decisions based on the beneficiaries of the trust. Until that time i will continue to make all such decisions. Sumner redstone is issuing this statement on the heels of some press reports that his daughter Sherry Redstone would be the person who is the heir apparent to his role at cbs in particular. But he is basically saying here that no decisions have yet been made and of course cbs earnings are after the bell today. So well see if there is any more conversation about this or if statements from Sumner Redstone shuts down any questions from analysts about what to expect next. Very good julia. Well see you later when those cbs earnings come out. Expected next hour. Time for a cnbc news update with sue herera. Hi bill. Heres whats happening this hour. A former Guantanamo Bay inmate who was convicted of killing an american soldier will be released on bail. This after a canadian judge refused a lastditch effort by the canadian government to keep him in jail. The prisoner who was born in toronto was in Guantanamo Bay prison for a decade and has been held in canada since 2012. Oklahoma governor mary fallon declaring a state of emergency for 12 counties after strong storms tore through much of the state last night. You can see from thats aerials, it left a complete path of destruction in norm an, oakan, oklahoma. Four men walked into a cartier Jewelry Store on tuesday. Cannes and walked out with 20 million worth of jewelry and watches. Getaway car was found burned later in the day. A japanese female android is giving men fashion tips at a Department Store in japan. She helps male customers find the perfect shirt by using a touch panel and the android makes recommendations based on a customers personal preferences and physical details. And that is the cnbc news update. I dont know it is a little creepy. Id love to see bob pisani go in there and get fashion tips from a robot. Absolutely. Well hed get very interesting handkerchiefs handkerchiefs. Nobody tells bob pisani what to wear. No indeed. Sue, thanks. With a halfhour before the bell, we are still seeing all the major averages in positive territory. Were holding on to gains of about 89 points. Thats roughly half a percent into positive territory for the dow and the nasdaq s p 500 slightly shy of that. A friendly reminder we are still more than a year away from the u. S. President ial election but, hey, theres another election on the other side of the pond that could spark a great deal of market volatility depending on the outcome. Well talk about that coming up. Then well talk the big business of brews with boston beer. Founder jim cook. And maybe, just maybe, well have a taste of sam adams summer ale. Maybe. Thats up later on the closing bell. Stay tuned. The network that monitors her health. The secure Cloud Services that store her genetic data the servers and software on a mission to find the perfect match. And the mom who gets to hear her daughters heart beat once again. Were helping organizations transform the way they work so they can transform the lives of the people they serve. Lot of green today as wall street bounces back from that twoday decline we had seen on tuesday and wednesday. Now we get ready for the jobs report. Im not sure this is anticipating a stronger jobs report. This may just have been a recovery from a shortterm oversold condition. I think investors learned when they saw 16,000 in april that you cant predict where these will come in. All eyes will be on that tomorrow. Meanwhile, investors are keeping a close eye on the election in the United Kingdom. Results could go into the wee hours of the morning. Why is this vote to important, alistair . Absolutely. The outcome of this election is on a knife edge. Because of that a lot of eyes on the exit polls which were due to get when polls close in around 1 1 2 hours time. And also what happens next. Historic buildings, windmills, even pubs have been pressed into Service Today so britons can cast their vote today. All the signs are that cameron will have to enter into a coation negotiation with smaller parties in order to form a government. That gives enormous amount of power to groups like the right wing Uk Independence Party which wants britain to quit the European Union all together. And the scottish nationalists. You may remember last year almost succeeded in a referendum to separate scotland from the rest of the United Kingdom. Both of those scenarios are likely to spook the markets and so there will be a lot of eyes on what happens next. Those results may not even come very quickly. It could come down to rural districts such as areas in southwest england where we may not get a result in friday lunch time. The leader of Largest Minority Party will be the one to begin those talks. David cameron hopes that will be him. We should know more in around 90 minutes. We want to talk about how a change in leadership would affect the uk markets would affect markets around the world, including the uk because of the impact it could have on the eu. Of course. Joining us now, kevin kelly, chief Investment Officer at recon capital. Larry mcdonald a cnbc contributor. Gentlemen, thanks both for joining us. Kevin, start with you. The big question is if cameron stays in office would he use that 2017 referendum to decide whether to stay in the eu . Is that likely to happen . I dont think so. I dont think thats David Camerons focus. If you look at the leadership under david cameron, since 2010 when he took office hes added more jobs to the uk economy than the continent of europe combined. Last year the gdp growth was 2. 8 . This year its 2. 5 . Theyve got a strong resilient economy. Thats actually being reflected in the ftse 100 which is up over 6. 5 this year compared to the s p 500 which is only up 2 . Larry, you think he is able to form a Coalition Government of some kind but what impact would that have on their view of the European Union and whether they stay in there . Well the thing to think about, if you think about tail risk. The thing that were watching is the strength of the liberal democrats, if they really are if they win or if they have a strong portion of the new government youre talking about a Banking System thats seven times leverred to gdp. Seven times. And the Credit Condition the credit standing with that type of leverage. You need a government that has Strong Financial market free market controls and respect. So thats where you get into some tail risk in terms of the pound and things that can disrupt the globe. Kevin, what parts of the equity market will be most exposed to the outcome . There are so many large multinational companies, not only that are based in the uk but also that are based here in the u. S. And have something jobs and exposure to the economy in the uk . Where should we be looking for any response from stocks. Yes. Where youll see a big response from the stocks is going to be hsbc. Hsbc makes up about 9. 7 of the ftse 100. But if you look at its performance, profit is up 4 in the First Quarter. Its done very well. They actually were implied in fx rigging scandal. So if the labor party does get the coalition, hsbc said theyre willing to move if the labor party wants to increase levies on the Banking System so the Banking System is going to be really impacted as well as utilities. But what people can actually look for is armed holdings. Its publicly traded here. Profits surged 22 . Its actually up 13 on the year and it actually gets royalties from its 64bit processors in the new smartphones that are coming out. So the latest gadgets. Thats in contrast to qualcomm over here which is actually down 7 on the year around isnt get the royalty growth. Quickly, would this election could it change your view of investing overseas . I think we were negative on uk equities of all the developed markets in the world. They have the highest exposure to energy. Energys up oils up 20 here in the last eight weeks, nine weeks. So we want to fade uk stocks here maybe lean in on the short tide. Larry Mcdonald Kevin kelly, thank you both. Well have doesnt sound like were going to have any results out of the uk even though the polls close in 90. Minutes. Hopefully we will when we wake up in the morning though. Yes. Lets head to the close. 18 minutes left in the trading session here. The dow is up 85 points right now. Porsche is unveiling its brandnew north american headquarters complete with a test track. It is not free but it is pretty cool. You wont believe what else theyve got going on there. Thats next. Also will teslas new home battery turn the lights off for the utility sector . You may be surprised by what analysts are saying about that. Well get to that on closing bell. Stay tuned. Well, a mortgage shouldnt be a problem your credit is in pretty good shape. Pretty good . I know i have a 798 fico score thanks to the tools and help on experian. Com. Kaboom. Well, i just have a few other questions. Chuck, the only other question you need to ask is, what else can you do for me . Ill just take a water. Get your credit swagger on. Become a member of experian credit tracker and find out your fico score powered by experian. Fico scores are used in 90 of credit decisions. Hello. I am here to offer sophisticated investing strategies. My technology can help you choose the right portfolio. Monitor it. And automatically rebalance it. All without charging advisory fees, account service fees or commissions. That may be hard to compute. But im a computer. So trust me. It computes. Say hello at intelligent. Schwab. Com. Welcome back. About 15 minutes to go into the close. You can see we are losing some steam but Still Holding on to green here on wall street. Whatever happens in todays close, plus tomorrows trading could make or break the trading for the week because we are still negative for all major averages so far. Yes, we are. Meantime porsche opening up its new headquarters in your hometown of atlanta. But this isnt your average ribbon cutting. And it is certainly not your average Office Building to say the least. Phil lebeau has the inside look of a pretty snazzy development, phil. Reporter it is very snazzy. I know you native georgians like to take things a little slower. Roll the tape because theres nothing slow about the test track behind the new Porsche America headquarters. It is 1 1 2 miles long. Youll probably get the 911 that you take you the up to 105, 110 miles an hour. It is designed for performance driving. It is opened to everybody. Porsche owners can bring your cars down here. If you arent a porsche owner, fly down spend a day or two down here testing out porsches. The ceo of porsche north america says this is all about expanding the brands awareness here in north america. We wanted to inspire our employees to bring them in direct contact with our products, with the brands to drive, feel listen to these cars. We wanted also to invite our customers to learn a little bit more about the brand. Zblmd a a lot of questions ive received the last couple of days from people when i told them i was coming down here how does porsche compete with tesla . Porsches sales easily dwarfing teslas here in the United States. But weep in mind porsche has nine models tesla only has one. An average transaction price, nothing to sneeze at here. It is 88,000 or the average porsche. Thats all of them lumped together. It 93,000 for the tesla model s. I know youre down here sometimes, kayla. Swing on by here. This is quite the drive for an hour or two. You know something about this phil. But mercedes just relocating its headquarters from new jersey to atlanta as well. Theres something about the city. Just saying. Drive safe. Phil lebeau. They drive slower there, too. We take little bit a little bit lower, at least according to phil. Whatever that means. Breaking news this afternoon. Fitbit filing for an ipo. Our dom chu is back at headquarters. It is listed on the New York Stock Exchange under ticker fit. Fitbit files documents for the ipo. Ipo up to 100 million but we know very well of course kayla, because you cover all this, this is a place holder or not. No indication on a pricing range or how many shares are being sold. Fitbit is selling stock and initial shareholders will also be involved. Among lead underwriter, morgan stanley, Deutsche Bank securities, bank of america, merrill lynch. Fitbit reported revenues of 337 million for the three months ended march 31st. Fit fitbit files ooh for thefor the ipo. It will be listed on the New York Stock Exchange. Ticker fit. No indications on price but the company and selling shareholders will be participating in the ipo. Well bring you more details but those are the headlines. By the first look of it 93 million tomorrow that tune at the end of most recent quarter . There was this question about with the apple watch coming out, with jawbone just raising fresh capital, what these companies would need to do to grow with so much competition. Looks like fitbit is seeking capital from the public equity markets. Interesting to see what the demand will be for shares of that. It is a very hybrid space, so it will be interesting to see how guys react in terms of valuations. It was a huge success at christmas. You wonder if the demand continues down the road. It will be interesting. Im sure well be looking through this and bringing you more details throughout the hour. For now, dom, thanks for bringing us that news. Tesla is making a leap into the home battery business and thats got very vminvestors worried about the future of the utility sector. Many say fears of the utility death spiral may be premature at this point. Thats right. With tesla unveiling stationary batteries and more people in general turning to alternative power sources, theres a lot of talk about this possibility of a utility death spiral. Experts say not so fast. While utilities are dealing with issues like who pays when residents add more power to the grid an theyre taking out, expertse experts say the shift to renewables is taking its space. Huge wind portfolio plus solar with some assets. Next era energy partners. A number of animal cystalysts recommend this stock. If you look at factset, the implied up side for this stock over the next 12 months 15 . Next nextera is not alone. Other regulates utilities are forced to spend more on cleaner power and grid upgrades. Analysts say that could being a set rail growth earnings. Edison international has been upgrading its grid including adding energy storage. Theyve actually partnered up with tesla. Pinnacle west capital has renewable projects under way in places like arizona. Also some other names. Dominion resources. Duke energy. Also, southern company. Thats expected to spend a billion dollars on solar this year. So dont count out the utilities with a socalled death spiral just yet. Theyre also making investments in this area. They are. Renewable energy is becoming even bigger right now. Morgan, thank you very much. With just about ten minutes to go before the bell, were watching equities come off slightly from their highs but still in the green by about. 5 . By the way, art cashin just signaled 200 million to sell. So the imbalance is slightly to the sell side as we head toward the close. Much more when we come back on closing bell. Here at td ameritrade, they work hard. Wow, that was random. Random . No its all about understanding patterns like the mail guy at 3 12 every day or jerry, getting dumped every third tuesday. This happens every third tuesday. We have Pattern Recognition Technology on any chart, plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. For all the confidence you need. Td ameritrade. You got this. Just because im away from my desk doesnt mean im not working. Comcast business understands that. Their wifi isnt just fast near the router. Its fast in the break room. Fast in the conference room. Fast in toms office. Fast in other toms office. Fast in the foyer [pronounced foyyer] or is it foyer [pronounced foyyay] . Fast in the hallway. I feel like ive been here before. Switch now and get the fastest wifi everywhere. Comcast business. Built for business. Tmplths with the dow up 92 points, big jobs report tomorrow. What are you expecting and what do you think the market is going to do about it . We are expecting a little more volatility going forward. Weve been range bound for a long, long while. I dont have a prediction on what the jobs report will say. I wouldnt say we like rate sensitive names. Weve seen a fairly significant selloff. Utilities in particular. They were last years best performer. We expect to raise in the right environment. What if oil goes much higher . We dont expect it to go much higher prp youve seen the stocks trade in sympathy with oil. Very much in lockstep. Earnings have been good but we expect theres probably more downside than up side in oil. Dan, thanks for stopping by. Dan mcmahon at raymond james. Well be back with the closing countdown as we head toward the closing bell. New york state is reinventing how we do business by leading the way on tax cuts. We cut the rates on personal income taxes. We enacted the lowest Corporate Tax rate since 1968. We eliminated the income tax on manufacturers altogether. With startupny, qualified businesses that start, expand or relocate to new york state pay no taxes for 10 years. All to grow our economy and create jobs. See how new york can give your business the opportunity to grow at ny. Gov business lets take a look at your credit. I know i have a 786 fico score, thanks to all the tools and help on experian. Com. So how are we going to sweeten this deal . Floor mats. Clear coats. Youre getting warmer. Leather seats. And this. My wife bought me that. Get your credit swagger on. Become a member of experian credit tracker and find out your fico score powered by experian. Fico scores are used in 90 of credit decisions. Another stock popping. A swissbased company that does a lot of agra business. Monsantos the biggest player in this space. Syngenta spiking up higher on a report its hired bankers from stanley to advise on a potential deal to be taken over by monsanto. A possible deal there. Theyve retained bankers of morgan stanley. This is a report from reuters citing sources. You see the action late in the day. Syn again enta it says is also working on the sale. Dow chemical could be potential suitor along with basf for part of that deal. 80point gain on the dow as we get ready for tomorrows big jobs report. Meantime, more earnings comeingeing your way at the top of the hour on the closing bell. Welcome to the closing bell. Imausche in for kelly evans. Major averages are negative for the week although tech and financials on the back of some pretty positive earnings helping turn us around. Mainly a lot of that action coming after the close in europe. Lets bring in todays panel, Mike Santolli our own jane wells is here from california howdy Steve Leisman joins us as well. We are equally excited about steve join something us from no youre not. The sound of your voice was note noteliblynote notabley downbeat after jane. Were in for one of those hours, i can tell. Grassos not ready . Hes got a day job. Bill did you mention that i was here . Steve leisman is here as well. In addition to jane. So you dont feel left out, steve, well start with you. Dont do that. What do you make of today, as well as yesterdays market action. We saw disturbance about the bond market and what Interest Rates were doing. We did see the 10year here come back just a little bit. Its all it all feels sideways to me in anticipation of tomorrow when we will learn the fate of the free world and whether or not western civilization as we know it will continue if we get a number above 200,000. I think thats kind of the mark. Whatever the actual number is whats your gut tell you . I havent run my model yet. I think we might just hit that 200,000 number. Then everybody will breathe a sigh of relief that theres still strong job growth out there. Below that you start to question and you will see that economically this has spilled over into the jobs market. Very interesting claims were so lot. Not a whole lot of firing going on despite what we learned from the challenging report going on in the oil sector where they seem to be firing tens of thousands of people. Steve grasso you ready to go . I can sort of hear you. It is kind of loud on the floor of the New York Stock Exchange right now as people mill about here a little bit. What are you doing ahead of the jobs number tomorrow morning and what are your expectations . I think steves number of 200,000 sounds like a pretty good line in the sand there. You and i first started out doing these pieces where we would talk about these numbers. I think for the most part the Investment Community is just worried about what the feds doing. I think theyre getting a little bored with that. You look at the day to day fluctuations in the dollar and the dollar index. I believe that really tells you what it is going forward. The dollars been weak. I would assume it is going to remain weak. A oneoff today. The market basically is reacting to winding up trades then unwinding of those trades. The s p cash still to me is performing a little bit weak for the last couple of days. Were below the 50day moving average. We touched below the 100day moving average yesterday. I think it is a little bit soft. Stand by there, steve. Because the first of our earnings reports that were looking for, the big one, cbs, is out right now. Julia boorstin how do they look . Cbs beating on both the top and bottom line. The company reporting earnings of 78 cents per share. Thats 3 cents better than expected. The company also reporting revenue of 3. 5 billion. Wall street had been expecting revenue of 3. 445 billion mr. A beat dollars. A beat on the top and bottom line. The team is capitaling on all the tremendous opportunities afforded to companies to create premium programming. Theyre confident about future profits. They also expect to be number one in the advertising upfront marketplace. Well continue to take you through these results. Then the Earnings Conference Call for cbs begins at 4 30 p. M. Eastern. Thank you very much. Well watch to see how the stock reacts. Dont miss a first on cnbc with cbs ceo les moonves. 10 00 eastern. Hes the guy that made the mayweather pacqaoi fight happen and now the lawsuits are happening and show timetime is among those being sued by people saying everybody should have known pacqaois shoulder was injured and theyre being ripped off. Im curious what he has to say about what some are calling the fraud of the century, which is an exaggeration. But he put it together and ep owns showtime. Whats it going to be . It was quite a marketing event, if nothing else for the company and for that event, jane. You were there so you know better than anyone about the fanfare surrounding that. But from a Company Perspective that beat on the top and bottom line, given what weve seen elsewhere in the media sector this quarter probably a little bit of a relief. I think a lot of questions on the call with the core business is what the ad buy situation looks. A lot of talk this upfront season about we want a different cpm model. I dont think that impacts this Current Quarter but it is something i think people are focused on. Steve grasso do you like cbs . Mike knows this as well. Cbs has a lot of good things coming out on the horizon. They have the super bowl. They get back thursday night football. A lot more ad dollars coming down the pipe. They still have 15 of the 20 top scripted scripted shows is in their library. Can i say that i hate cbs . Theyre a competitor to the network that signs my paycheck. What are you guys talking about . Grasso what are you now talking about . But i have two jobs so im allowed to say the other way. Well maybe true for now. True for the moment. I do look big brother though. If there is a way i can get on that, i think i can represent cnbc there. Well have to talk about monster bveverage and nuanced communications when those earnings come out. Youre not conflishthed therected there, are you, steve . Hes already had his monster beverage. What is are your expectations . We want to see a stronger erer number. Or do you if . I think todays action was nomans land stuff. Velocity of those macro moved. I still think range bound nobody wants to hear this year sounds like last year. Market pattern exactly the same this year. Year to date s p, lacht year almost 2 . Same as today. I dont want to hear that. This is really boring with be but we be serious . Way to tease it steve. I came up with this idea that the fed is really data dependent which tells you one thing. There isnt going to be a warning ahead of time were going to raise rates. Youre going to figure out that rates are going to rise by looking at the data. So what makes the fed reporting boring but the economic reporting much more interesting and a lot more volatility potentially in the bond market. Let me just make this point. Wait. So above 200,000 means theyre going to raise rates. You need to put together probable abilities versus the data. What that tells you is a couple 250,000, 225,000s, together could put june right back in play. Thats interesting, thats exciting and thats volatility right there. If you do 200,000plus again here we were just thinking wed be able to take our june vacations. That was the title of every strategist report kayla, i will teach you television overpromise of underdeliver. There you go. Thats how that works. Steve gasrasso, yelp searching for possible acquisition. The stock was up big today. Do you like that one . I actually dont. I thought the barriers to entry were nonexistent in that name. I guess on the show when they reported earnings, dr. J came out and said that that was one he would be interested on a dip buying because of somebody getting interested in some m and a activity. Kudos to him on that. I definitely see why someone like a google or apple because they have that payment services, why theyd be interested in the infrastructure thats already set up with yelp. But for me it is probably a notouch at this point even though it is extremely volatile. Im wondering, mike what you think about the general m and a environment. Because we are seeing a lot of companies i dont know if you can call it throwing in the towel. But im thinking Avon Starwood all of these companies that are evaluating strategic alternatives. It makes you wonder if they believe their stock market valuation is high if they believe the market for competition is too high or if they just think that there will be buyers who are willing to go to the bond market and borrow. I think this many years into an economic recovery this many years into a very very strong and lubricated capital markets, it is the time to strike. If you think that its not going to get any cheaper, other companies have an appetite now in terms of acquirers, i think that might tell you why. It is kind of that moment it is maybe a now or never moment. Whether people anticipate that Mortgage Rates are going to go higher, thats when they start to buy or sell a home. Heres the fedwhats happening with m and a. People saying should i put my house on the market or not or should i buy or not, the definitive movement in rates i will point out, i am not in the apocalypse now camp whether it comes to Interest Rates. They hit this 220,000 range, which by the way weve all been here before. That is the top of the range and we come right back down. By the way, at that 225 range everybody says oh boy, here is comes and we head right back down. I would not be surprised if were sitting here puzzling over 190s not too long from now. We are he a begging for a 200 right now. Steve grasso thank you. See you. Begging for it. Stick around. Catch grasso and company on fast money. Thats at 5 00 p. M. Eastern time. Theyll be asking one of the most bullish economists on wall street why she thinks we should expect 315,000 jobs tomorrow morning. That will be at 8 30 a. M. Eastern time when we get the jobs report. Stick around for that. I think at some point the label market tightness is going to come out. Wow she could be a genius. Jobs are always a local trend. People on twitter are always say, talk all you want about the jobs number. Until im hired, i dont care. I have to tell you, it is better. It is better. In california. In california, it is better. We dont have any water i was just going to say. Have a drink. Well talk about that. We have a lot to go were all these guys. Banks under fire again today. Next it is time for the barney and larry show. Former congressman barney frank and cnbcs larry kudlow will talk about whether another banking crisis is possible or not. Whole foods fighting back fat earnings yesterday with new expansion plans but the National Food grocer is now aiming to go younger and smaller. Is it too late to dive in . Youre watching cnbc first in business worldwide. 6 tap away. Whats on your mind lisa . Id like to talk about a trade idea. Lets hear it. [ male announcer ] see how schwab can help light a way forward. So you can make your move wherever you are. And start working on your next big idea. Welcome back. The depths of the financial crisis may seem like histories to some. But tim geithner sat down with Steve Leisman today and he issued some chilling words there. Didnt he . He did. In the first instance he said were better prepared for one but that you cannot rule out another one happening. And i asked him what would happen again if the a treasury secretary had to go and ask congress for more money. Heres what he said. The next time we get to a financial crisis lets hope it never happens again. Oh it will happen again. It wont be like this. I can not imagine at this moment a treasury secretary going to the congress and saying give me 700 billion to bail out the financial system. That will not happen. In the end, the only way you protect people from the effects of classic panics like we had in 08 is to have the central bank and the government step in and take risks the markets cant take. So i mean theres two ways to think about this. The first is that its inevitable. Thats the capitalist system we live in. Other way to think about it is we can drive this car in a very responsible way. And we can avoid this in the future. What git inner ergeithner is saying is the accidents going to happen no matter what. Then there is some interesting controversy how you prepare for that. Not even a decade. The accident may happen but it will be at a different intersection. Different cars. Thats a really great analogy, kayla. You cant prep for it. Almost by definition it is the things you didnt see coming that will bite you. Lets add these guys to talk about it. What we affectionately called the barney and larry show. Barney frank is back with us, as well as cnbc contributor larry kudlow. Lets let you guys talk about this a little bit. Barney, what do you think of what geithner said . Is another financial crisis entirely possible in the world of doddfrank . Oh sure its possible. Look. The issue is this. I believe we did a very good job of dealing with the things that caused the last crisis. Although i regret that the regulators eased up a little bit on what i think was the central safeguard which is Risk Retention for people who issue securitized loan. The new deal they passed a lot of laws and stopped the crisis that came from 2009 but the key here is for regulators and congress to be ready to deal with new issues. But i will say one thing that i am confident about now. Yeah, there may be another crisis. The level of indebtedness that the Financial Institutions will carry into that crisis is to use your correction analogy, how fast are they going . Aig, for example, was the precipitating institution. Theirindebted in es that they couldnt deal with the last time. Aig is considering reducing its risk profile. Theyll be less indebted. Yeah, there will be another crisis but it wont have the dollar magnitude at least as of now that the last one had. Larry . Of course theres going to be another crisis. We have them periodically. You can say the banks have better cushions. Their capital cushion is much better. That doesnt mean that theyll be saved if something happens. I just want to make a political point which i guess becomes a financial point. There is no way the congress is going to bail out large banks again. No way. Not going to happen. And it may come up why . In this election. I think theres agitation on the republican side for candidates to take a no bailout pledge. Sort of like no tax increase pledge. Yeah youll never get the bailouts again. You think that kong would allow bank xyz to go under, even if it had the major ramifications we talked about eight years ago. Yes. Yes. Weve learned a lot since that time. Ill say chairman frank presided over a bill that has contingency contingencies for these sorts of thinks. But the fed would act. The treasury would act and so forth. And the fdic would take action. They could insure deposits. They could insure debt. All that will happen but these banks will go under. If they are going to go under, they will not be bailed out. Im opposed to any further bailouts myself. Larry is exactly right. We did have death panels in our legislation couple years ago but they werent for old ladies. They were for banks. Heres the deal. Larrys right. An insurance tigstitution will be allowed to fail. Thats what the law says. The treasury the regulators are empowered to step in and pay some of the debts. What hank paulson and ben bernanke told us a few years ago was they had this terrible choice, either pay none of the debts or all of the debts. We have empowered them using bankruptcy concepts to pay only as much of the debts as is needed to stop the problem, and then to recover that over time from the Financial Institutions. So the taxpayers may front some money to pay some of the debts. But only after the institution goes out of business. Larrys absolutely right. I dont agree with either of you. I think youre both wrong. I think when push comes to shove, the incentive on the part of the bureaucrat is to avoid failure. You have no discretion you havent read the law. They cannot legally do that. Youre telling me the secretary of the treasury will violate the law because the law says tle canhey cannot step in until they have put that institution out of business and receivers have taken over. It is not a matter of their discretion. The only loophole here it is a debatable loophole. Barney may not agree but many people believe myself included that right now banks are too big to fail and there is a dozen of them, maybe more. There is a debate about that. I talked with tim geithner about that. Id like to see that clarified, that there are no banks psh. It is clarified in the law. Absolutely flon. Zero none. Zero. Youre ignoring the text of the law. Maybe the secretary of the treasury will violate the law. Yes, there are banks that are too big to fail without consequences. The let me finish please. They get put into receivership. The institution dies. There will be a payment of some of their debts. Only as much as is needed they think, to avoid a catastrophe. Barney youre talking about living wills here and no, im not im talking about the text of the statute the statute says very clearly they may not pay any of those debts until the institution is dissolved. Barney it is a sign of my high hubris that i would offer with the author of the law. But is it not allowed under the law for the authorities to step in and provide assistance across a broad range of institutions . Not individual but they can come in and provide it to a broad range similar to the way they did t. A. R. P. No. Institutions that are ill liquid or solvent. Aig wasnt solvent. In case of a liquidity crisis the fed can advance money to solvent institutions. But an insolve rantnt institution like aig was or any others if they cant pay their debts they are wiped out. Thats the qualification. This is the only area where i have some reservations. I wish the laws would be clearer. I wish the Resolution Authority would be clearer. I hear barney on the issue of a solvent bank but i think at that point, if it comes down to it thats an exceedingly difficult analysis. Very, very difficult. And i just want to say that i wish we would make it clear in some new piece of legislation which Jeff Hensarling may be putting together in the House Banking Committee no banks are too big to fail. None. By the way, thats what it says in the law right now. Now maybe and i agree, there is some question about you got to be tough on solvency. Some suggest thats a form of bankruptcy. No thats wrong but we know aig wasnt solvent or they wouldnt have gotten any money. As a courtesy i think we should still mention Barney Franks book is out there. It is called frank. It is a terrific read. You didnt pay plea to say that but i enjoyed it very much. Thank you very much. After that you can call it ry and barney show. New changes coming to mcdonalds but the public is meeting them with mixed results. Kale . Anything healthy is good. Sure, i would try is the a least once. I dont like kale. I know a lot of people that do. Cold or warm it is not for me. Kale at the golden arches . Hell has frozen over an adult version of Ronald Mcdonalds arch nemesis, the ham burglar. How does james franco fit in this whole story as well . Woo he have a lot to cover when we come back after this. Over 20 million kids everyday in our country lack access to healthy food. For the first time American Kids are slated to live a shorter life span than their parents. Its a problem that we can turn around and change. Revolution foods is a company we started to provide access to healthy affordable, kidinspired chefcrafted food. We looked at what are the aspects of food that will help set up kids for success . Making sure foods are made with high Quality Ingredients and prepared fresh everyday. Our collaboration with citi has helped us really accelerate the expansion of our business in terms of how many communities we can serve. Working with citi has also helped to fuel our innovation process and the speed at which we can bring new products into the grocery stores. We are employing 1,000 people across 27 urban areas and today, serve over 1 million meals a week. Until every kid has built those lifelong eating habits, well keep working. At chase, we celebrate Small Businesses every day through programs like mission main street grants. Last years grant recipients are achieving amazing things. Carving a name for myself and creating local jobs. Creating more programs for these little bookworms. Bringing a taste of louisiana to the world. At chase, were proud to support our grant recipients and Small Businesses like yours. So you can take the next big step. I think id rather buy from if the old hamburglar. Hes just cuter. Id rather buy from the old hamburglar. He looks more friendly and welcoming. This guy looks a little more scary. Id definitely buy from the old hamburglar guy. Hes just so much more friendly and welcoming. I would buy from the second guy. Hes kind of hot, to be honest. Ive never been really a mcdonalds person but i would go to mcdonalds for that hamburglar. Ooh. Okay. Well they found one fan. The people have weighed in. As you just saw, we turned to wall street and asked people which Mcdonalds Hamburglar theyd rather been burgers from the french hipster or old cartoon. The old one, a the clear winner. As you heard. Mickey ds is not just revamping its mascots. You remember this tv ad from just a few months ago . All vegetarians, foodies and gastronauts, kindly avert your eyes. You cant get juiciness like this from soy or quinoa. This isnt greek yogurt nor will that ever be kale. Well after poking fun of it in this ad mcdonalds is now reversing its position on kale and testing it in some of its restaurants. The fast food giant also getting some lover from actor james franco. He penned an oped in the Washington Post saying mcdonalds was there for thim when no one else was giving him a job while he struggled to find acting gigs and pay the bill. So of course a very touching story. Do you think its a matter of time before he b the unofficial spokesperson . Later he admitted in the oped he only goes there like once a year now. Maybe thats mcdonaldss new slogan, there when nobody else will be there for you. I went to mcdonalds this morning. I had an egg white mcmuffin. When is the last time anybody went to mcdonalds . I actually went to mcdonalds about a month ago. I couldnt figure out whether i was if a texas road house, a miami nightclub or a convenience store, frankly. Just felt like there was too much going on. I still cant forgive them from giving up the beef wrap. They still only make the chicken wrap but the beef wrap was so good and then they no ones nodding their head. What . You dont even remember that . No. Oneminute time pro ploegsmotionpromotion. So theyre testing kale out in california. Thats a smart move. I mean really . I only thing i wanted to do now is go have a big mac after seeing that. I think it the chorizo bowl has more promise. Unless youre a mom or on a date i dont know what theyre trying to do with the kale. Its just a breakfast thing. Kale tastes terrible theres just brand creep going on right now. Everybodys going to have a chorizo bowl after a while. Everybodys going to be serving kale after a while. Nobodys going to be filling a brand niche any more. At some point the chicken mcnugget was considered to be a little bit of a dilution of the burger brand. As long as theyre trying to stay current in on the joke in terms of their new ad campaign. Im trying to figure out how mcdonalds gets my kids. When im driving im the one that wants to stop at mcdonalds. For me where do they want to go . They would rather go to subway and get a nice sandwich. Nkdz never mcdonalds. And because they never had my wife they never had my kids. I dont know that my kids are going to ask me to stop at mcdonalds for kale. I dont know what where it is they exactly want to go but it is not the idea im going to give myself this once a month pleasure that i do maybe once every two or three months stop over and have a burger at mcdonalds. I used to go to mcdonalds every week. Now i go once a plont. It is still very confusing to me. I have to say i kind of like the creepy new sexy hamburglar. Look at his wife out in the suburbs. Looks like the wendy woman. The kid has red hair like the wendy womans kid would be. The kid says i want to go to mcdonalds. Thats deep analysis there of the mcdonalds commercial. I know my fast food imagery. Thats amazing. We criticized them for trying to be too sentimental and too touchyfeely with the ad call your mom, but i think that makes sense for them to do this. Certainly the new ceo is trying to lot of things. It is an streermtexperimental phase for sure. We are finding out the hamburglar is the illegitimate child of wendys you cant put a square patty in a please. Sue herera help us out. She has a cnbc news update. I wish i could but my kids love mcdonalds. What can i tell you. Heres your news update at this hour. The Senate Overwhelmingly passed a bill establishing congress right to review any nuclear deal with iran. The bill would prevent president obama from waving sanctions on iran for 30 days while Congress Reviews a final agreement. Lawmakers would then be able to vote on whether to disapprove the deal or take no action. Listeria bacteria was found in bluebell ice creams oklahoma plant as far back as 2013 according to test results released by the fda. The company continued to ship ice cream produce in that plant after what the agency says was inadequate cleaning. Two workers were killed following an Oil Tank Explosion at a home in westchester, new york. The two were attempting to dig up the tank. The home was near several schools where students were kept inside while the situation was handled by first responders. No reason yet for the cause of that explosion. And take a look at this. A daring escape attempt in japan. All caught on video. A brazen bear at a japanese zoo tried to scale there he goes hes almost free he tried to scale the wall of his enclosure enclosure. The keepers are kind of franticly trying to get him to get down. Eventually they used that long stick to herd the bear back into his enclosure. I dont blame him, id want to get out of there, too. Thats the cnbc news update. Free the bear absolutely. Poor little guy. Not in my backyard. Thats true. You live in l. A. You guys dont have a lot of well have you some bears. Yeah you have bears and coyotes. Yeah. Snakes. Rabbits. Got to get to mcdonalds. See you later. Stop my kids love mcdonalds. What can i tell you . We are still a halfhour away from happy hour. As it draws near well take a look at the growth of craft beers and long at the forefront is boston beer and founder jim cook who is going to join us outside the New York Stock Exchange. And retirement is a dream for many but a new study says generation x believes it is not only that about, but it is a fantasy. It was only my imagination its atsz justjust a fantasy the network that monitors her health. The secure Cloud Services that store her genetic data the servers and software on a mission to find the perfect match. And the mom who gets to hear her daughters heart beat once again. Were helping organizations transform the way they work so they can transform the lives of the people they serve. Retirement may not be what it used to be and for baby boomers, it may be a fantasy. 84 of baby boomers think retiring at 65 years old is unlikely and unrealistic. Well be retired by then thats for sure. With us now to talk more about the study, katy libby, vp of Consumer Insights at allianz life. First, tell us what this survey says. Why do the postbaby boomers think that retirement is a fantasy . Well, it was really interesting actually. 84 of both generations, whether it was baby boomers, or genx felt that traditional retirements maybe sitting on a beach or playing golf was a romantic fantasy. Thats not just going to happen . I mean who around here thinks that no. Go ahead. I was going to say, i think its not all bad. I think a lot of people are waking up to the fact that they could be in retirement for 30plus years. And so maybe doing some kind of parttime work just to keep a healthy mind and a healthy body would be good for them so they dont completely think theyll stop working. We have a decent Cross Section of generations here on the panel. Who here thinks youre going to sit on a beach and play golf for 30 years . Anyone . Jane wells. Jane wells. The thing is its not so much that i dont think i can afford to retire at 65. Its more that will i want to just retire at 65. You know what i mean . I think thats the difference too. Its not necessarily just the financial issue. It is an attitude issue. A lot of baby boomers dont want a traditional retirement. They do want to stay engaged and they want to make maybe a little bit of income, cover some of their nondiscretionary expenses. Lets be clear, were talking about a tale of really two different retirements. Whats true for people at this table and for many of our viewers because of their income level is not true for people of less means who have first of all maybe working jobs where their continued work is something that tends to degrade their quality of life whereas what theyve shown is that people who do desk jobs like we do it tends to enhance your life span whereas manual labor, it does not. So theres a critical and important societal cultural issues that have to do with poor people retiring and lower middle class retiring versus everybody. Youve really thought this through. Ive done a lot of work on this issue of lifestyle economics. They cant afford to retire . For generation x, one thing thats really concerning is that they say 67 of them dont even believe the targets are achievable for retirement. And 68 of them dont think theyll ever be able to retire. Yet with all that kind of hopelessness that gen x is feeling, they still think somehow 25 years from now it is all going to work out. So theyre really not doing anything. I think it is hard to save because they have so much debt. But what we say is that they really need to kind of have a wakeup call and start saving for retirement. And if they dont like thinking about it as saving for retirement, think about it as saving for every job transition between now and retirement. Maybe the framing should change for generations like gen x. Brokerages have put together programs to help you be able to see what you look like at age 65 and 75. How to picture retirement, maybe making it a little bit more real. Interesting study kitaty libby from ael lanzllianz life. Whole foods looking to reel in millennials with a lower priced sister chain slated to open next year. Will that strategy worth . Tune in to closing bell tomorrow. The chief Investment Officer of cal calstra joins us in a cnbc exclusive. Looking forward to talking to chris again tomorrow. Stay tuned for more on whole foods right after this. It begins from the second were born. After all, healthier doesnt happen all by itself. It needs to be earned. Every day. From the smallest detail to the boldest leap. Healthier means using wellness to keep away illness. Knowing a prescription is way more than the pills. And believing that a single life can be made better by millions of others. Healthier takes somebody who can power modern health care. By connecting every single part of it. Realizing cold hard data can inspire warmth and compassion. And that when Technology Meets expertise. Everything is possible. For as long as the world keeps on searching for healthier. Were here to make healthier happen. Optum. Healthier is here. Back to dom chu with some of the earnings alerts coming out. First we heard from whole foods. We saw the disappointing numbers there, the disappointing stock reaction. Now it is a smaller competitor of there, Sprouts Farmers Market here. Earnings per share for the First Quarter came in at 25 cents on an adjusted basis. That missed the analyst expectations for 26 cents so a narrow miss there. Sprouts Farmers Market also reported revenues of 858 million. 863 million was the estimate for Sprouts Farmers Market. They also offered some guidance for the full year that may have fallen below some analysts expectations. So again we are still combing through some of the nuances details. Whole foods not showing a bunch of promise in terms of the stock price reaction. Also now smaller competitor sprouts. On twitter, some people are saying it it is the peak organic part of the cycle. But right now whole foods and sprouts both showing signs that things are not as valuable to some investors as they appear to be. You flagged that a while ago. I did. Because our Comp Store Sales were also sort sf mid single digits. Sprouts is ooha lot cheaper than whole foods. Whole foods announcing that plan to roll out new lowcost stores targeting millennials. The companys coceo discussed the move earlier today on squawk on the street. We also think the marketplace has gotten much larger and by launching this second exciting brand and concept it gives us another growth vehicle for us to take whole foods into the future. We think potentially this opportunity could be as big as the Whole Foods Market opportunity. Lets talk about if it is a good move for the organic food chain or not. Will millennials buy that it. Here to join the conversation with the panel, mark youve heard what were talking about here. They want to go to the lower price point in the organic foods but sprouts is already there and theyre suffering as well. Does this make sense, do you think . I think you need to stop and look at whats going on here. We have a broadening out of demand occurring. If you look at whats happening in the marketplace today, it is a little bit of a democratization of organics. As the price is coming down the middle class and even lower income consumers are starting to come into this space. Whole foods can see sprouts and trader joes and others playing this low price card. I think they think this is a way that they can get after that opportunity. Mark, i wonder if you can pull apart a little bit of Market Reaction to whole foods numbers and this announcement today. It seems people might step back and say whole foods is supposedly only onethird of its way to its max store count and here they have to pivot and do Something Else with a whole new store format. Are people concerned about the broader strategy . This 10 stock selloff we had in the company today was more about their samestore sales backtracking than it is about this new store format. I think the new store format is getting unfairly blamed for some of this pullback. The new format has caused some investors concern maybe this is a sign were heading down the price and margin curve for the industry and maybe there is some concern that this could be a distraction for management when they should be focusing on improving the samestore sales at the existing stores. Mark it is jane wells. They are talking about it is going to be a new techie kind of format that millennials will like. Does that mean selfchecking in selfbagging . I dont quite understand tessco tried a little bit of that with fresh and easy. Failed for the most part. Whats this tech angle they are talking about . Theyve already embraced apple pay. We know millennials love their cell phones and there are a number of interesting ways to check out and selfcheck out is one of them. These selfservice kiosks that you could go to in the store. I think they may also head down the road of ecommerce and use of insta cart for delivery. But we dont really know the name of this new concept. We just know that it is going to be smaller, it is going to be valuefocused an it is going to be aimed at those millennials. If you look at those millennials, they like organics with be theyre concerned and dont like the packaged foods that are out there. And they dont know how to cook. So i think youll probably see something that addresses prepared foods in the store and also value. Before we go do you like the stock . We have been hold rated on whole foods because of the supply demand dynamic in the sector. Last year we had a study done of all of the organic players. Industry demand growth is 8 to 10 . Youre seeing a headbutting and even whole foods is cannibalizing their own sales. Mark thank you very much from jeffries joining us today. Thank you. Earnings were fast and furious after the bell again today. Well wrap up some of the big winners and losers. Theyre doing it for the love of beer. The founder of Sam Adams Brewer boston beer will join us here at the New York Stock Exchange to discuss the craft beer trend. Nothing new. Theyve been a part of it riding the wave for 20 years. Well be taste testing his latest offering and closing bell will be right back. There is an ancient rhythm. [ ] that flows through all things. Through rocky spires. [ ] and oceans swell. [ ] the endless. Stillness of green. [ ] and in the restless depths of human hearts. [ ] the voice of the wild within. It has been quite a busy hour for earnings after the bell. Back to dominic chu to wrap up some of the big movers. Lets start with cvs. Quarterly earnings Beat Estimates by three cents, the company said its all Access Streaming Service is to reach 75 of american households by the end of the year. Then theres an Artificial Intelligence and data Company Called rocket fuel. First earnings beat by nine cents. Shares are down by a quarter of a percent. Big beat for Voice Recognition company nuance. 30 cents per share. Revenues came in that topped analysts estimates. I want increased 500 million in terms of its stock repurchase brand. Monster beverage missing on revenue. Earnings per share 62 cents per share. 68 cents was the estimate. Company says the earnings were hit due to distributor termination so those shares were down. Back to you guys. So the craft beer wars are brewing were told. Yingling topped sam adams. Up next well head outside in the sunshine outside of the New York Stock Exchange to talk to boston bear founder of sam adam and how hell reclaim that top spot. Closing bell will be right back. We know craft breweries are popping up all over the country. Beer is a big business but a growing business. Doing very well. We keep talking to constellation brands. Their beer business is booming right now. We want to talk to someone who knows something about this. Jim cook is the founder of boston beer which owns the sam adams level. It feels like friday. In the real world its always friday. Why is beer hot now and why craft breweries. Americans are waking up to flavor and taste in just about everything. And beer is part of that. I started sam adams in my kitchen 31 years ago and people could not understand the idea of american beer with quality and taste. Well the revolution started and now the best place in the world to be a beer drinker is in the United States. I didnt say you could pick that up. How long do we have to wait. Lets go. Ask a few questions. Is it an oxymoron when craft brewers are as big as they are. By defending a craft brewer should be a guy making beer on his kitchen table, right . Hopefully not otherwise we wouldnt have gone anywhere. Whats helped craft brewing is weve been able to grow but you all have to keep your own perspective. Sam adams is one of the leading craft brewers. Were a little over 1 of the market. We got a long way to grow. Craft brewing about 11 of beer drinking distribution. Is that critical mass. I think theres a lot of room to grow because like you said theres almost 90 of the people out there who are drinking other beers than craft beer. Critical mass im not sure about the economics of it but mentally craft beer is now entered the mainstream the way good wine did 20 years ago. Theres a bubble. Some say 6. 5 billion craft beer is getting a bubble. Too many people. Excuse me while i drink. We said you could ask a question and have a little bit. A bubble again. Were 11 of the market. What percent of the public wants to drink good beer . Sam adams was a hot new thing but didnt go away and seems to have maintained a certain prestige in the market. How have you cultivated that . It really starts with making great beer consistently at a very high quality level and then the second thing is innovating and building on that. Is this the summer ale . No. I want to hear the answer. Summer ale seems wrong. Got to have it out of a bottle. Its not a regular beer can. If you notice we developed a special beer can, talking about innovation that gives more flavor and taste to the beer just like this is a special glass. It does look smaller. You cant bring glass to the beach. Thats right. Pools, golf. Jim cook of boston beer. Great to see you. Cheers. Why is it only the women get to drink beer. The men have to say goodbye. Were heading to fast money now. Thanks for stopping by. Great to see you guys. Thats it foreclosing bell. Well see you tomorrow. Fast money melissa lee coming up right now. Live from the nasdaq markets, this is fast money. Im melissa lee. Tonight, yelp wanted. Its putting itself up for sale. Well tell you who the buyers could be. Could a jobs report blow up the rally in stocks. Theres a stern warning for anyone invested in the market. And biotech bonanza. Why next one could be the most crucial one. First we start off with the land of confusion. Stocks rebounding as rates and oil fell hard. What do investors need to watch