Transcripts For CNBC Closing Bell 20150519

Im Bill Griffeth getting ready for tonights edition of nightly business report. Well see you later on pbs. Right now were on all time high watch again, kelly. The dow trying to close at a record for a second straight day as well as its four day win streak. Since early february we havent had one of those. Plus the s p is also trying to close at unchartered territory. Struggling a bit right now. But it has been helped out earlier by the financials and health care sectors. Coming up well hear from experts on whether stocks can sustain this rally. Also ahead activist investor karl karl icahn, he will tell us if it pays to invest like icahn. A couple of pros have different opinions on that. Etsy getting ready to report its first Quarterly Results since going public. That stock is up nearly 30 since its ipo. Well have the instant analysis of the numbers. Rumor has it that etsys earnings will be released on a needle point sampler. Lets take a look at markets. As bill mentioned record high territory here for the dow up 21 points. Again, what are the underperformers, one of them is walmart. There are bright spots elsewhere including the financials. The s p 500 just fractionally lower after a record yesterday and the nasdaq is down five. Lets talk about a lot of thing. We have with us amy wu and rick santelli. Amy ill start with you. Youre the resand market whisperer. You track Market Sentiment out there. What motivates this market. We talked for the last couple of days about this market tip toeing over the line into record territory and very few people are paying much attention right now. Whats the motivating factor going on in this market . If i had to characterize this market right now what i would say is options investors are definitely concerned just not right now. Everything were seeing in terms of options action is suggesting that positioning and hedges fear for down side is there. Its just being pushed out and out and out. So especially as this rate hike prediction moves further and further out we see hedges moving to september and even to january of 2016. So they are thinking well have a correction eventually just not right now. Exactly. Mark what about the fed minutes tomorrow . Do you expect them to shed any light not particularly kelly. They are from april. We know that the fed is data dependent. We accumulated more information, especially information that showed what took place in the move april which is starting to leak out from that factor of the port strirks the weather induced die munition of Business Activity particularly the northeast. So i think that were not going realize much other than the fact that the fed will say we continue to be ones of accumulating information and not ready to make any decision with regard to liftoff. I suspect very little in the way of information for anything for Market Participants to sink their teeth into. You dont expect the market to do a whole lot this year. And thats been the case. Starting to break out to the upside. What your expecting to happen down the road . You know that housing report this morning, Housing Starts very strong. If Housing Starts to catch fire finally, couldnt that have a positive impact on stocks . Yes, could it. Certainly positive impact on the economy as well. As encouraging as that number was we have a lot further to go to get to the precrash levels for housing in terms of builds and Housing Starts per month and our annual run rate. So its a good sign for the economy. We think this year is probably going to be marked by the economy, maybe not as much depends on the first quarter, the double revig or however you want to count the seasonal adjustments. Looking forward in the next three quarters the economy doing better than the domestic market. The market just having a flattish to muted year and thats of course why we want to look overseas. Wean that strength in housing numbers and other favorable factors. We know as well that all of this has been about moments and rates and a little bit of a break out to the upside in the ten year over the last month or so. What happens today . It seems like were still so keyed in these markets on every ten basis points move one way or another probably because the high yield close to the year is 229 and we touched it briefly today. That makes complete sense to me. What doesnt make sense is all the surprise that an april housing number after a tough winter actually showed a rebound. That totally makes stones me. Lets not lose sight of the fact the last two months under 930,000 annualized units. New homes and permits is not the biggest swath of the market. Existing home sales is. But what i found fascinating you have these weak data points and then you have a couple to of good once quick trade, eight or nine basis points thats a nervous condition we need to Pay Attention to truly. Hit that 2. 9 number and thats the new resistance level. Rick, your favorite website, the atlanta feds gdp now number which tries to track realtime what the current gdp would be for this quarter, after that housing start number came out said Second Quarter gdp probably is now. 7 . Up to. 7 . Is the bond market appropriately priced at that point right now . Lets say the bond market with all the cross policy going on globally lets say it was destined in 2. 5 gdp economy to be a 2. 75 or 3 . That could be real. Which means they are low. I personally think its going to take more data points to really goose the rates up and i think the thin market will make that happen quick. But what we dont want to avoid is some of the cross currents with just positions moving around, also having that effect but not a lasting effect because we all know at the end of the day what gives us confidence is the thinnest might run rates up but what growth should keep them from getting out of control. It may be the last part that may be under review in the future. Anthony chan was making this point. Yesterday he said he thinks the vix is becoming more correlated with stocks so they rise and fall together instead of doing the opposite. Do you think thats the case and if so what does that mean . Thats a really interesting point. I think, you know right now people playing the vix are playing it to say volatility is going lower and lower which is freightening. Everyone said at the moment that the fed put was removed well have a reflation volatility. We havent seen that. One thing thats reflected in that is everyone who is playing any sort of view right now is doing some sort of spread structure orca len dar structure. What they are saying im not willing to go long volatility outright at all. Im trying to do a reduced premium trade and make a moderately long view on volatility if at all. Mark i was looking at your notes. This caught my eye. Gold mining shares. When was the last time we talked about gold mining stocks. Your buying those right now or hanging on to what you already own or what are you doing with them we are looking at them. I dont know were stepping in it. Its interesting because of what you just said and nobody is talking about it its indicative of a space thats got completely bombed out. Sentiment is poor very low expectations and as a consequence just even less bad news may be enough to ignite a rally in that space which is what im acknowledging in my notes. So, quite quietly you had this rally in gold. Its not driven purely on gold price. Its up 3 . Rather shareholders finding that gold miners have suddenly found religion and are trying to treat them more friendly and that marginal cost of production for gold is still profitable even at 1150 to 1,200 an ounce. Any particular names you want to mention investors need to look at dxj, japan hedged for the dollar and hegj hedged for the dollar. Those markets are going very robust this year. Those two etfs i expect to be up between 20 and 50 of the year where the u. S. Market i expect to be up between 5 and 6 . Japan index is up 28 yeartodate already. Right. We saw the trade reverse. We saw the euro after weakening to 104 and change went up to 114 in change that reversed here on monday with the comments from ecb official. Hedge the dollar. Get exposure in japan. It will pay off. Crude oil is sliding as the dollar got its mojo back. Jackie joins us with that story. Look if i had to rank the reasons that we saw the decline that we saw today in oil prices i probably would put the dollar first, the dollar index now over eat again adding pressure. June crude closing at 5726. But expiring at the close today so july is what we care about, 47. 99 is where we stand at this point. That june expiration created some volatility. Traders are expecting to play the ranges. Not these short tight ranges but this range of anywhere from 53 back up to 62. So we could see more down side pressure and more volatility this week as we go into the holiday weekend. All right, jackie. Thank you. Mark, if the dollar starts to go higher again, gold will get clobbered, isnt it . I think were seeing that today. What are you doing buying mine sners miners are getting a break away from the price of gold in the sense they found a way to become profitable because of the deleveraging and down sizing theyve down closed mining projects that were under way, written off r and d that they were going expose shareholders to more costs that were unnecessary in light of lower gold price and found once again a way to actually be profitable with much lower gold prices. I think any stability in the price of gold above 1100 an ounce is largely profitable for some of the bigger more well run gold mining enterprises. All right. Thank you folks. Always happy to talk to you guys. Just under 50 minutes to go into the close. Looking at maybe new records again on the dow today. Its above the 18,300 mark. Just slightly. Well see if that index can stay positive. The s p negative by three. When we come back when billionaire investor karl icahn speaks the world listens. We saw him move apple stock again yesterday but we want to know does it pay to invest like this wall street titan . Streets top icahn watchers will talk about it. And there are still bargains worth adding to your portfolio. The money pros share their list of the hot value stocks. Were back in two. Were back in two. Before earning enough cash back from bank of america to buy a new gym bag. Before earning 1 cash back everywhere, every time and 2 back at the grocery store. Even before he got 3 back on gas. Kenny used his bankamericard cash rewards credit card to join the wednesday night league. Because he loves to play hoops. Not jump through them. Thats the excitement of rewarding connections. Apply online or at a bank of america near you. Its part adrenaline and part adventure. Its part geek and part chic. Its part relaxation and part exhilaration. Its part sports car and part suv. And the best part . The 2015 gla. Its 100 mercedesbenz. [ male announcer ] your love for trading never stops. So open an account with schwab. And when a market move affects, say a Cloud Computing stock youre holding, we can help you decide what to do. With tools that help you see how market activity is affecting your positions. So when the time comes to decide whether to scale in or scale out. You can make your move wherever you are. And start working on your next big idea. Things are changing rapidly. The markets major averages had been in record territory early on. The dow was up 50 points. Thats moved into negative territory as has the s p. Were looking at all 30 components of the Dow Jones Industrials average, 15 are up 15 are town right now. Mcdonalds the best performer today, kelly up 2. 6 . Walmart with that disappointing Earnings Report is the big drag down 4. 5 right now. A lot of retail disappointments. Dominic chu is keeping an eye on the market movers. Mcdonalds its back up to the 100 mark. Well start off with a look at dicks sporting goods. It took a hit after reporting a drop in quarterly profits. Those shares down 5 . Red robin posting a huge earnings. The burger chain said that earnings did beat and it was helped along by lower labor costs among other things. Those shares up by 15 . Vodafone shares are sinking. Those shares down by 2. 5 . Then finally apple the Biggest Company in the world according to the wall street journal apple dropped plans to make a 4k Television Set more than a year ago. Karl icahn reiterated his bullish view on apple right here on cnbc today. He has made what some estimates are over 3 billion in profits since he started buying that stock two years ago. Karl icahn making those comments right here on cnbc. What can be categorized as one of the most profitable trades at least on paper. Thanks very much. It is the latest public pronouncement by karl icahn that sent that stockton move. Earlier karl icahn spoke about his apple action. I think i helped the company, i think die and i dont think you can deny maybe some of my influence helped to buy more stock. Thats what im trying to do more. Buy more. Great for the shareholders. Great for the company. Great for karl icahn. So when he speaks how closely should investors listen . Should you be more like ike in this particular case were joined by brain blair who says yes, follow karl icahn closely. And mark hague who disagrees. What is it about karl icahns strategy that the average investor should follow emulate and copy. Look at his performance. He has about an 18 average return often years. He has a good track record. I think he was down a little bit last year because of his investments in oil. Apple, obviously offset that. So thats the first thing you look at his performance. Thats the proof that the karl icahn way works. He recognizes where theres a disconnect where the Public Market is valuing a company even where it should be valued. Hes able to go in and be very influential and help unlock value whether encouraging buy backs or spinoffs or other types of engineering. Hes able to help companies unlock value. Hes masterful at this. Hes almost 80 years old. Hes seen the market across every sector and cycle. You have to watch him in that way. Not every investor can do the same thing but we can all watch and learn from him and imitate his direction. Mark youre not jumping on the karl icahn band wagon. Why . Well maybe not 100 but, you know lets take a look at iep, Icahn Enterprises. Thats his major stock. Thats what you expect to find if youre a regular investor all of his sort of items that he touched on. Thats his version of berkshire hathaway, right . None of those stores in there. It trades for two times book value. So i mean i dont really understand i mean he doesnt have apple in there. He doesnt have ebay in there. He doesnt have hlf in there. I dont quite really that stock has been pretty flat to be perfectly honest. Were talking about icahn associates. I see the associates included 11 billion stock. Its actually a hedge fund but because its a partnership he takes a fee. But it trades two times book value. Who is going to buy a company that you can buy in the stock market with all of its holdings . Im a little skeptical. Sounds like maybe you need to do a little activist investing and encourage karl. You sound like you dont its appropriately valued. The bottom line is he has a tremendous track record of success and its whats interesting to me is its not just what the old twa back in the 70s here hes made 100 Million Investment in lift which will be a competitor to youuber. What did he do for ebay. He encouraged them to spin off paypal which they are now doing. I think well get the answer whats happened to the stock . The stock has gone nowhere, basically. I think we should see where the stock is within the 12 months. Hes made known. He hasnt made any money in herbalife. Fine, he made money in apple. Thats right. Tell me a stock he made a ton of money at other than apple. What youre saying is when karl icahn announces a position in the company youre not the one that will jump in and buy that stock because karl icahn has bought that. Brian, are the type who would just because karl icahn has taken a position in a company . Given his performance, given this 18 average or a ten year period, i think that you could. I like what hes done on the tech side. He clearly had some losers. He was wrong on blockbuster. He ended up becoming a real winner with netflix in 2012. So he right ad wrong. To your point, mark, hes not always right. But track record has shown a propensity to be right more often than hes wrong. Should investors emulate his strategy whatever that strategy mark maybe. Even brian made it sound like it emphasizes a lot on buy backs and spinoffs. Is that something that the typical person should look for when they are screening names . Well the average person cant do all these things. He a 1 stake in the company and got them to spinoff paypal. Paypal is a very Interesting Company and im glad they decided to do that. He did that with less than a 1 stake. Can the average investor do that . I dont know. Would paypal and ebay have done that other than him influencing it. I suspect that they may not have. But thats fine. Eventually they probably would have. You know, other than making a couple of good stock picks i dont understand why anybody would put money in karl Icahn Enterprises at two times book value. It doesnt make sense to me. None of those names are in there. Understood. I think what we do is 12 months from now lets go back and see where his top holdings are. Lets see where ebay is. Lets see what happens when paypal is spun off. Lets see if his 2015 picks at least within tech are outperforming a lot of other investments. My believe is that they will. Agitating, you guys had to be patient and wait for the results at that point, i guess. Brian, mark, good to see you both. Thank you for joining us today. See you later. 35 minutes left in the trading session. The dow and s p losing ground. The industrial average down two points now. S p down three. Either one of those if they finish positive would be in record territory. Well see what happens in the last half hour of trade. A couple of records on those yesterday. Up next bob pisani has a special report. Then later are retailers recovering or not. Courtney regan sizing up a mixed bag of retail news still to come. Bout that one breed. But in fact, there are over three hundred breeds of dogs. Because no one can be an expert in every one. An app powered by ibm watson will help vets tap Specialized Knowledge in the cloud for every breed. And whatever else walks, flies or slithers through the door. Ibm watson is working to make medicine smarter every day. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print Amazing Things right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. Welcome back. Keeping an eye on markets here. Stocks have turned negative on th the session. The dollar index is higher. Its been climbing all week. Its up 1 to 95 and change bill on the session. It popped after that Housing Starts report this morning as well. That had a big impact. Meanwhile the New York Stock Exchange this is interesting is getting into the bit coin business. Bob pisani whats that all about it launched the bit coin index. Surprise. Which is the First Exchange calculated and die simi natd index for bit coin. This gives a realtime price of bit coin based on the coin base exchange. They facilitate currencies in 26 countries. There are other bit coin indexes out there. But the nyse is getting behind it. Crypto currencies are getting more real and customers are interested in it and asking about it. The issue is to me is whats next. Whole universe of customers that never seen bit coin data will see it routinely. Now my guess, guys is that the goal is to create tradeable products around the index. Thats coming. The nyse has an information page. Nyse. Com indices. Back to you. Thank you, bob. The move by the nyse comes at the same time as the nasdaq started to trade the currency. Far cry from the shadowy markets bit coin was a part of a year ago. Is it on its way to becoming a legitimate currency and investment . Matt, let me begin with you. Why do you think this is a Pivotal Point for bit coin both as a currency and as an investment. Yeah. The New York Stock Exchanges adoption of this is a major milestone for bit coin. We see on a weekly basis Global Financial institutions jumping in to the bit coin business. Everybody on wall street has bit coin. This is a very innovative technology. Change agent for finance. Were going to see more and more of this unfold and look at this as a stepping stone not only for bit coin the currency but an ability to trade other assets. Why your skeptical . Call me old school. Bit coin hits one out of three. Im not saying theres no role for bit coin. There certainly is. As a method of transaction. But were still in the early days and digital currencies. Well see a lot of evolution. I dont think bit coin is the first word or last word. But as a real currency and im a currency strategist it doesnt fit the quoteunquote traditional values or definition of a currency. When we are showing there some of the details of the bit coin index im guessing the only one you think feels in terms of those three roles as a means of exchange why is it significant both store value and unit of account as well . Well for people to be comfortable with currency you have to have faith in its value. Bit coin was trading Something Like 13 at the beginning of 2013. Jumped to 1100 at the end of the year. Now its somewhere around 200. Your price if youre buying a car the price is going up and down. Thats not say obviously in the early stage people are trying to figure out fair value, almost impossible for Digital Currency, but i guess to me the question i have we already have Digital Currency we have paypal apple pay wthe dollar as your account. No one knows why to use another coin. Im Old School Like i said. Matt he gave you a lot to talk about there. Respond to what he said. He admits hes old school. So am i. Im wondering how this will play out. Youre the proponent here. Go ahead. Absolutely. I think the debate has always been is it a store value. Is it a payment mechanism. Is it a commodity and heres the secret. Its all of the above. On top of which bit coin acts as a programmable, as programmable money. It can do things that traditional money cannot do. If you extend this this vision further when you look at internet of things machine to machine, ways in which payment is transacted bit coin will solve those issues. Let me get to the point. The thing that for a lot of people skeptical, made them skeptical about bit coin is its role in shadowy deals. You can do this anonymous. Now youre getting like the New York Stock Exchange, the stockholm index which is gaining legitimacy from those but are you able ever to you know, get rid of this this shadowy reputation that the currency has because of deals going on in the past. Bit coin has bean tale of two cities, Charles Dickens the best of times the worst of times. You have the overcurrent of bad pr, the price, regulatory overhang and adoption relatively hohum. Whats unseen right now is the billion dollars of Venture Capital coming in to this spaces Human Capital people leaving wall street and Silicon Valley to get into bit coin on top of which were seeing household Name Companies all over the world enabling themselves to learn this technology and leverage that. All right. We will see what happens. Thank you both for joining us today. Thanks guys. Thank you. Appreciate it. Time now for a cnbc news update with hersue herrera. Two iranian war ships linked up to a cargo ship off the coast of yemen. Its claim its carrying human relief. One u. S. War ship is shadowing the ship which the u. S. Suspects is carrying weapons. Takata has agreed to declare 38 million inflater mechanisms to be defective. The announcement was made by the national Highway Traffic Safety Administration in washington. The founder of alibaba defending his company and expressing regret that gucchi and Yves Saint Laurent is fighting it. Robert kraft wont appeal his punishment. Kraft said hell not appeal the leagues decision to fine the patriots 1 million and take away two draft picks. Thats the cnbc update this hour. Back to you. Thank you so much. 25 minutes to go into the close. Markets pretty Much Negative on this session although the dow hovering around the flat line. Giving up the earlier gains. Yesterday both in positive territory. They will tease us. When we come back well bargain hunt on close bell. Pros will name some stocks that they think can be bought on the cheap. Value investing when we come back. Me back. Here at td ameritrade, they love innovating. And apparently, they also love stickers. Whats up with these things, victor . We decided to give ourselves stickers for each feature we release. We read about 10,000 suggestions a week to create features that as traders wed want to use, like social signals, a tool that uses social media to help with research. 10,000 suggestions. Who reads all those . He does. For all the confidence you need. Td ameritrade. You got this. Who do you work for . Your boss . Yourself . Your family . Our Financial Advisors are free to realize a plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. We have breaking news right now in some of the nations biggest banks nearing settlement forn rent exchanges charges. This has been a long time coming. Now we understand that a number of Major International banks are expected to settle with the Justice Department in an announcement to be made as early as tomorrow. And that some of the Holding Companies of these banks are expected to plead guilty to rigging the Foreign Exchange markets the International Markets on which people trade currencies. Also a fine levied on a group of banks that number in the high billions of dollars but the exact total still yet to be determined. Details, of course will be coming probably throughout the rest of the afternoon and evening. But certainly tomorrow if the timing goes as expected. Again, the currency manipulation probe taken by the Justice Department and other agencies together likely to be resolved imminently. Back to you. Thanks very much. Course the banks lately have been shrugging off these headlines but one factor to consider with 20 minutes to go and these markets near record highs. Were looking at where the bargains are to be had. Dominic chu has some value plays. This is what the analysts are saying. We looked at the forecast for some of these stocks in the s p 500. Well look at three sectors, health care, first of all and financials and technology. United health group those shares are 13 away from where analysts think they could be in the course of the next 12 to 18 months. They could go up by 13 . They are already up 9 just this month alone in the month of may. Biogen it could be a 20 gain if analysts get the number correct here for upside moves. Its already up 6 month to date. It has some momentum. If you look at the financials second biggest sector in the s p 500. Citigroup, 13 gain is possible if we see the upside that Analysts Expect to see. Its up 4 . It has some momentum behind it short term. Prologis can go up by 18 . Its up about 1 . The biggest sector of them all facebook. Technology. It could go up by 18 according to average analyst forecast. Its up 3 this month. Hewlettpackard could gain 21 on average and its up about 1 no month to date. In this case those are some of the stocks in the s p that could be poised for gains if again, the big caveat the average analyst forecast is correct, guys. Back over to you. Thank you very much. Now we have two market pros who will tell us where they are finding value. Joining us with their plays is charles from Brandywine Global and stern. You go first. Hi how are you . Our top picks are in financials we like citigroup. We think citigroup is a misunderstood investment story. Its trading below book value. Secondly, the stock is trading at ten times earnings. We think those earnings are depressed. They are depressed for a number of reasons because of a lot of legacy costs that the company is still carrying. A more normal vast with lending picking up citigroup could approach 7 per share. You could see citigroup trading well over 70. Theres a big misperception on the stock. They refuse to own it. We think we have negative pessimism and a very cheap stock. One of our other favorite stocks is micron. They are one of the three largest producers of memory for computer chips, computer and electronics. And stock right now is trading at nine times earnings. We think earnings can approach can go 3 per share to approaching 5 per share out a few years and at that point the stock could be worth 50. And three Major Players have been acting rationally controlling supply and not adding massive amounts to over capacityize the market. This is not your fathers market. Its a much more balanced and concentrated industry where the earning power is much more stable. And youre picking cigna jewelers and hanes brand. Are you betting on the consumer or whats the underlying theme here . The key caveat for myspace is in terms of value meaning cheap, my group a couple of weeks ago was trading at the highest value. Theres not a lot of cheap names. Hanes brands and Signet Jewelers Signet Jewelers bought zales. Theres no player underneath them. Its hardly fragmented. A lot of synergy between those two businesses and lot of earning power. They should earn 60. By 2017 they could earn 10 to 11. On hanes brands they are unlocking a lot of value. Basically theyve acquired four businesses over the last two years. They can continue to do that. They can roll them through their Global Supply change. Take out operating costs. Good oldfashioned stock picking. Thank you. Ill say, kelly, value players for whatever reason are always the best story tellers. Thats what these fundamentally are. Great story to tell on any stock they are investing on. A reminder on the front page of the wall street journal just yesterday that stock picking has outperformed indexing so far. A lot of people hopeful thats a trend we may see more of. 15 minutes to go until the close. Looking at major indexes. Dow has given up four points, the nasdaq is down three, s p is down three. Retailers have been sending some very mixed signals about the consumer these days. Courtney regan will try to sort it out for us get behind the numbers when we come back on closing bell. So why pause to take a pill . And why stop what youre doing to find a bathroom . With cialis for daily use, you dont have to plan around either. Its the only daily tablet approved to treat erectile dysfunction so you can be Ready Anytime the moment is right. Plus cialis treats the frustrating urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. Why pause the moment . Ask your doctor about cialis for daily use. For a free 30tablet trial go to cialis. Com 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. So as we had mentioned mixed bag of earnings from some of the nations best known retailers lately. Then well get etsys earnings. Courtney regan is here. If youre investing in retail you got to do your homework. The Worlds Largest retailer and largest Home Improvement retailer turning in different. Walmart misses bay penny. 7 below last year. Thats lower than last year and a billion half shy of analyst as estimates. Sales u. S. Stores opened at least a year improved 1. 1 . Third straight quarter of improvement for walmart. Traffic did also improve. Walmart struggling internally the grocery and store experience as well as exalternatival fact jobs the strong dollar. Consumers saving and paying down debt. Home depot benefiting from that recovering housing market. Profit revenue same store sales all beating estimates. U. S. Same store sales up very strong, 7. 1 . Retailer upping its sales guidance. Interestingly tjx home good stores also saw those comps improve 9 . Bargain hunting consumers driving strong results across the personality disorder with tjx beating consensus as it ups its earnings and sales forecast. After the bell well hear from online marketplace etsy. We only have a handful of estimates to go on but were looking for earnings per share of three cents on revenue of 59 million. One big concern is the number of items for sale on etsy that may infringe on trademark or copyright. Thats been flagged by a couple of analysts. You would think thats a question that would be answered while they file for an ipo. You would think. The concern has been raised when folks look at it. People are selling disney items, can they really sell that . Independent sellers putting for sell on etsy. They are taking the trust in their own hands they are doing the right thing. Not just an alibaba problem. Ten minutes left in the trading session. A squeaker. Will we finish at an all time high. Dow is in record territory. The s p is not. Much more ahead on the markets. More on closing bell in two minutes. Stay with us. Stay with us. Heres to breaking more glass ceilings in golf and everywhere else. Kpmg. Continuing our commitment to the next generation of women leaders. Can it make a dentist appointment when my teeth are ready . Can it tell the doctor how long you have to wear this thing . Can it tell the Flight Attendant to please not wake me this time . The answer is yes, it can. So, the question your customers are really asking is can your business deliver . Welcome back. Lets send it out to dominic chu for a quick market flash. Were watching shares of yahoo which took a leg lower in the last few minutes of trading after a bloomberg report citing china daily news that china may raise import taxes on cross border e commerce deals. Its citing a china daily news report. The shares seem to be moving yahoo much more than alibaba which speck lower and then recovered those gains. Still bill kelly yahoo traded 1 to 2 million shares a opinion between 3 41 and 3 46 this afternoon. Heavy volume on yahoo . Back to you. Joining us as we head towards the close from the New York Stock Exchange oliver and burt. Gentlemen, good to see you both. Oliver, i see your s p targets for the end of the year is 2250. Dow target 19,5. Yet your ten year treasury target is 225. You see movement in stocks but nothing in treasuries. I see a lot of movement in treasuries but end around 2. 25. There will be volatility. Volatility in the stocks over the next few weeks. The trend is higher for stocks. Weve been watching the same movie for the last six years. The fed is unlikely to move. It does it will be very little. Earnings will jump back and Fourth Quarter will be terrific. High quality stocks is a great place to be. Burt do you think the Fourth Quarter will be terrific yes. Deja vu. Last year tough first quarter. Youll get an earnings snap back. Why . Why do we keep having these. These weak first quarters and stronger finishes. Amazing. We cant predict tough weather. You have tough weather. This is seasonally adjusted data. You would think we would. We dont do a great job of that. This time we had other factors. Factors like energy prices. Factors like the port on the west coast. Those things were tough. So that led to some different periods this time. But i think by and large we think we got a pretty good backdrop for a snap back not just economically but from an earnings perspective. We have to leave it there, gentlemen. On a note bill that investors will be watching here as we approach the close. Yep. Heading towards that close with a closing countdown. Back after this. Thank you mom, for protecting my future. Thank you for being my hero and my dad. Military families are thankful for many things. The legacy of usaa Auto Insurance could be one of them. Our worldclass service earned usaa the top spot in a study of the most recommended Large Companies in america. If youre current or former military or their family, see if youre eligible to get an Auto Insurance quote. Your moms got your back. Your friends have your back. Your dogs definitely got your back. But whos got your back when you need legal help . We do. Were legalzoom, and over the last 10 years, weve helped millions of people protect their families and run their businesses. We have the right people onhand to answer your questions backed by a trusted network of attorneys. So visit us today for legal help you can count on. Legalzoom. Legal help is here. You can call me shallow. But, i have a wandering eye. I mean, come on. National gives me the control to choose any car in the aisle i want. I could choose you. Or i could choose her if i like her more. And i do. Oh, the silent treatment. Real mature. So you wanna get out of here . Go national. Go like a pro. Why do we do it . Why do we spend every waking moment, thinking about people . Why are we so committed to keeping you connected . Why combine performance with a conscience . Why innovate for a future without accidents . Why do any of it . Why do all of it . Because if it matters to you its everything to us. The xc60 crossover. From volvo. Lease the well equiped volvo xc60 today. Visit your local volvo showroom for details. Heading into the close early on it looked like a slam dunk we would see records for both the dow and s p. Dow was up about 50 points. But late in the session here in the afternoon we can see the dow and s p stumbling a bit. The dow is still positive. S p is not, bob pisani. And the problem here is the ten year yield popping up as soon as those housing start numbers came out, the dollar went up. How weird is this when is the last time these kinds of Economic Statistics moved not just our markets but even european markets as you see the euro thats the way its supposed to be. Yes. But not to this extent. Its a little bit unusual that moves in Economic News like this caused such notable moves in our markets and foreign markets. Its an indication of how tightly wound everything is and the anxiety about the ten year yields. Nobody knows what the right number is for the ten year right now. Nobody knows what the correct number is for Interest Rates in general. That anxiety causes these weird moves today. So we were up another five or six basis points in the ten year and the stock market never really got any traction today. I personally would gladly trade those great housing start numbers and well get existing home sales on thursday. March was a good number. I think they will be even better numbers. We need more inventory. Thats what we need to get the market moving. Not enough inventory. Thanks. Tomorrow we get the fed minutes too. That could be interesting. Could cause a little volatility in the afternoon. Stay tune now for the second hour of the closing bell with kelly evans and company. And get those earnings from etsy. Ill see you tomorrow, kelly. Hi everybody and welcome to the closing bell. Im kelly evans. Heres how were finishing up. A seesaw session with the dow trying to see if it could hang on and build on yesterdays closing high. Here it looks like going out with a gain of 14 points and thats good enough. 18,313. Thats your new high watermark. The s p couldnt quite do it broad market index giving up a point and a half to close at 2127. The nasdaq was the underperformer closing at a level of 5070 as everybody can see. Lets bring in todays panel to talk about and figure out where we go from here. Susan ox is here. Sharon epperson is here. Joining us also have ross gerber and sue grasso joining us shortly. Well get ebay results in a moment two. Kenny what was moving these markets around a little bit of the news out of europe the ecb moving those bond purchases forward. Then our housing numbers that caught everybody by surprise up 20 . It took a second look at it. Yesterday look the market really didnt do a whole lot. We didnt back off. Kind of digesting that move from yesterday. We are at an all time high as the market struggles with all the mixed data trying to figure out what the next move is. Even in retail. I keep saying ebay, i mean to say etsy. The real question is how strong is the consumer in the retail space just seems to be wrapped with names that are either breaking out to the upside or more commonly breaking out to the down side. Where do you guys see value were seeing consumers shift in the way they do things. Etsy is a perfect example of how people do things today when they go shopping. Etsy is an incredibly popular place for people to shop and a whole economy thats around this company and traditional malls and traditional retailers struggling because people arent walking through the malls buying stuff they are doing it online. I think were seeing actually pretty decent consumer activity just shifting with the new economy. I mean we have some huge movers to the down side. Include urban outfitters. Even walmart had a tough session. Mcdonalds is at the top of the dow. Its a period of turmoil. Going back to the discussion we had last hour maybe this is an environment where stock picking can make the difference. It can if youre good at it. If you pick the right ones. So the average investor looking to figure out where they will get their next big break may not be savvy and if they are not in the right mutual funds. What i found interesting talking to a number of Financial Advisors they say their clients are scared about whats going to happen next and they are looking at the market continuing to turn slightly higher and that seems like a positive thing but then they look at what the coerce doing with their profits. The buy backs they are seeing. Is this just moving money around or is it a significant gain for the company, a significant move for the company saying that these profits will last and thats what they want to see. They dont know how long it will last. I guess the good advice out there that a lot of advisors say they are giving their clients make sure youre well positioned in a number of areas to be ready for the unexpected. Its interesting if you look at the Consumer Confidence numbers on friday they are droopy. However, people are feeling good about their personal finances. Not feeling good where they think the economy is going. So i think it does follow on what sharon is saying. We are getting a mixed message. They are getting to a place where they are feeling more cautious. Ross is here as well. You have been big on apple. Everybody is talking about how they are the only name in the game. Where else . Where do we look to in this new economy . Certainly the traditional areas are still happening. Apple is dominating their industry and certainly we spend a lot of money at apple. Look at the Restaurant Business thats been doing phenomenally. Shake shack at 300 times earnings. People are going out and spending money in restaurants. They are spending money on travel. Look at the travel sector the airlines, i think will have a great summer. Some statistics out about that. Theres some opportunities there. The consumer is fine. I think the biggest problem with our economy right now is number one the banks, they are not lending for young information buy homes which will spur the economy and two, the government is so confused and clueless it just does not give people confidence into future. Now were going into an election year. It would be helpful to have a cohesive message from our government. I know grasso is no big fan of this government. Are you there . What do you think this is all about for the next catalyst the next move in this market to see if we can hold these levels and go even higher. Were in no mans land ever since we took out the cash that 2120 level. We are meandering around these levels and force new money into the marketplace. With the dollar going back to ticking higher euro tick lower that should be a head wind for large cap stocks. It should be a tail wind for the russell. You should have the lower market cap stocks do better going forward. Apple is not a lower cap stock so it seems like to your point Everyone Wants to talk about apple but we could see a couple of headwinds. I think the market does pull back 2 or 3 pull back but be very careful. Its a liquid week ahead of memorial day. 2 3 pull back is not anything for anyone to get alarmed about. In fact thats healthy. Healthy you want to see a 10 pull back. 2 3 gets everyone confused. But that just tells you theres plenty of buyers around it wont pull back any more. People want in. What do you guys make of this move in oil. Almost not discussed today was a big downward move the biggest we had in quite some time. And heightened geopolitical uncertainty. Im confused. Goldman came out with that note yesterday talking about oil is over priced at 60. Some of that was a little bit of the move. People taking advantage. Listen we went from 42 to 65 and now they want to take a little bit out. Fair enough. Well come back to this in just a second. Courtney regan has the numbers. We have revenue coming in about in line at 58. 5 million. The consensus was for 59. That is not comparable to the handful analysts but its the numbers that etsy has given us network at. Theres 28. 8 million active buyers and 1. 4 million sellers on etsy. These numbers could become very important as we move forward. Looking to the Second Quarter, no hard guidance though the company does say if the dollar continues to strengthen it could impact buyer activity outside the u. S. They also plan to increase their hiring and marketing spent in the next quarter. Kelly . Ross an 84 cent loss relative to an expected three cent profit. Shares are down 8 after hours. Whats your reaction . Thats to be expected. They need to help guide analysts here obviously. If the analysts are constantly wrong its the companys job to make sure people have the right expectations. The company is coming back to the public price when it ipod than paying an overpriced premium. These numbers are not that great. What people can do go on to etsy, my wife has a shop there and buy a Million Dollars worth of stuff. Thats fine. Do you guys own the name wolfs eye lash. Etsy. We dont own it as a stock. We like to watch the ipos usually for six month. How should investors who want to be in retail and on the cuttingedge of retail and are afraid by numbers or misses they see by a company like etsy but dont want to go with a traditional either brickandmortar or traditional online. Where is the cuttingedge that is not too much of a risk . Thats kind of a tough question because retail is a Risky Business just by nature. I like etsy. Its just a valuation issue. When you pay ten times revenue for a Company Everything has to go right. Its a great name to own. Needs to just come back. This is not a name that is trading it went public at 16. It was trading briefly at one point up in the 30s. Since been a long sloping line downwards and now back under 19. This is not a great story i would think correct me if im wrong about a company that has listed here in Stock Exchange trying to represent, a brooklyn based entity great new marketplace but im not sure dont be so quick opinion its too new. Brand new. Look what happened to twitter. The problem with these stocks that are ban new the guidance is off and investors buy into it and hear these numbers that they think are horrible and they bail right out. Its an overreaction. You have to give it an opportunity. It is cuttingedge. If people want in on a retail sector, whats the new face was retail it is absolutely stocks or Companies Like this so i think you got to give it a chance. I think hes right. Rosss point about expectations is right. Now they are talking about they are doing hiring they are investing in marketing, talking about high investment. You can expect losses in the future because they are ramping up. These companies shouldnt be giving guidance. Its giving more information than they can rely on. Theres direction versus specific quarterly guidance. I do agree this is a way to play the future of retail is we want the stock to come back. I would like to see this stock go down to 10 bucks and you have a great opportunity to make money. I wont pay ten times revenue. I want to be in it. I dont think etsy is going anywhere. Grasso well give the last word as those shares are trading down 12 after hours. Again we watched it go public here not long ago. Your bullish on etsy or is there Something Else . I wouldnt be bullish. I would have missed that ramp up. I think tremendous head wind going forward. Its in the prove me state. We know about the headlines. Trademark violations going forward. Its a longer story and maybe the other gentleman gets his 10 price tag. But when it prints at 10 everybody toes the olay and nobody wants to buy it. Thats how you make money. Thank you. Stick around and catch more of the brasso and fast money crew at 5 00. Could be an interesting one. Dont miss those headlines at 5 00. Dow closing at record high for a second straight day. Wall street sending mixed signals on whats next for the market. Some firms very bullish while others are signalling red flags. Which advice should you be heeding . Thats next. Supreme court announcing a decision that could have a major impact on your 401 k retirement plan. We have those details coming up. Youre watching cnbc first in business worldwide. Business worldwide. Love for trading never stops tdd 18003452550 even on the go. Tdd 18003452550 open a schwab account and you could earn tdd 18003452550 300 commissionfree online trades. Tdd 18003452550 so when a market move affects one of your positions, tdd 18003452550 schwab can help you decide what to do. Tdd 18003452550 with tools like free livestreaming cnbc tv tdd 18003452550 that give you the latest Financial News and trends. Tdd 18003452550 and bubble charts and price charts that let you see exactly tdd 18003452550 how market activity is affecting your positions. Tdd 18003452550 so when the time comes to decide whether to scale in tdd 18003452550 or scale out you can make your move, tdd 18003452550 wherever you are. Tdd 18003452550 and start working on your next big idea. Tdd 18003452550 open a schwab account and you could earn tdd 18003452550 300 commissionfree online trades. Tdd 18003452550 tdd 18003452550 call 18777292379. Tdd 18003452550 or visit schwab. Com trading. Tdd 18003452550 schwab trading services. Tdd 18003452550 your goto for trading knowhow. Tdd 18003452550 welcome back. We begin here with our meg terrell. Were looking at sarepta moving higher. It is headtohead with another company biomarin. Up 30 in after hours. We got other biotech news. From achillion. Its set to open at 4. 35. Entering into a Worldwide Partnership with Johnson Johnson to develop hepatitis c drugs. Worth up to 1. 1 billion. And j and j is taking an Equity Investment worse 225 million. Big biotechnical news. Back to you. Well keep an eye on it. Doufs the dow was up. Bank of america predicting scary summer. Goldman sachs saying the markets are going nowhere. Joining me now with his view on what investors should do is alexander freeman, former cio at ibs. Welcome to the program. Where your putting that 127 billion . Well luckily a lot of great managers who are investing. You start with the observations people are nervous. Why . In a sense they just have to sit in the boat for the last three years and going in the right direction. Thats the monetary policy. Thats moving in the other direction. Theyve paddle and asking a question which they havent asked and that is which way do we paddle. Its almost shock to think about it that way. Thats where you start with. The question is do you paddle faster or not. Its probably a bit of upside but not that much. In stocks. Risk assets. The opportunity is buying on dips. Which will probably come from factors largely unrelated to individual stocks. Come from macro political factors, come from data and i could easily see 2 to 5 corrections. The s p is range bound i was going say. Upside. A range at the most. I agree. Market will pull back 2 to 5 . It cant do much more than that because the fed is saying were protecting everybody. The market wont correct 10 because its almost as if Everybody Knows they are there so they jump in it down 5 or down 3 which is what keeps happening. With one caveat. There are two kinds of risk. One well never be prepared for, the unknowns the natural disasters, cyber attack. The other is policy error. It goes to your points that the fed will step in. That gets to is the market expecting there wont be a hike this year and is that an unfair expectation, is the fed signalling september which i they they are. Whats the allocation in your portfolio. How much is in u. S. Stocks versus fixed income. Well we run an Investment Firm with lots of different strategies and people buy individual funds so its not centrally driven. We have a business that does manage portfolios for individuals. If i look in that context still very much risk on. You have to secure self where else will you find yield. You have to be in stocks. You face the policy error risk in the United States around the fed and in europe on the fiscal side. Were all in the boat. Youre not saying you think theres a danger that the boat is tipping offer. We may have these mini corrections. But the fundamentals of the economy dont look like its going off a cliff. The fed has been signalling that they are going cautious and deliberate about this move. I want seems unlikely they will do something jarring that will flip the boat. If youre not in the boat youre in trouble. Because youre not making any money. If you are in the boat you have to ask yourself why do the future markets say there wont be a fed hike this year but the fed has said there will be and they want a fed hike. I think they should hike in september. We need to get on a path to normalization. I was going to say the analogy that you have to start pad seimology a really great one for a lot of individual investors out there who may not have been and have been relying on having the rising tide lift them higher but with the Financial Adviser business you have where youre trying to kind of help them manage portfolios the risk on trade, the stay in stocks, what are they mostly telling their clients or what your helping them to do for their clients . On a relative basis europe has looked better to us in the United States. You got Oil Following and thats moved. Evaluation basis more attractive than the u. S. Point number two fixed income traditional fixed income doesnt make sense. This is a big social issue. Thats a scary thing to a lot of people thinking thats what im going rely on. We have to go. Let me give you a quick last word on that. I was going say do you have to be invested in stocks. You have to recognize the macro environment is changed in the United States. You need to be picking stocks. Etf approach while it has a lot of me reiterate wont provide what it has. Setting expectations to range bound upside is important. In the United States. Europe is attractive. China i dont see a risk. No hard landing worries. But you have to be reasonably discerning. Alex thank you. We got breaking news on computer sooins. Shares are up 6 right now. Compute science is up nearly 7 48,000 shares of volume. The headline is Computer Sciences will split into two separate publicly trade companies, one that will focus on commercial and government clients the other one will focus on Public Sector clients in the United States. Concurrent with the planned split they will pay a special dividend of 10. 50 per share. Splitting into two companies. Paying a special 10. 50 dividend. They reported financial results. Earnings coming in at 1. 26. Estimates were 1. 20. Revenues a slight miss. The estimates there for 2. 69 million. The shares in Light Trading are moving here as the company has confirmed it will split into two companies and this move it says will not require a shareholder vote. Back to you. Big pop in those shares. The Supreme Court ruling 401 k Plan Administrators have a duty to make sure they dont stick investors with high fees. And retirement plans of millions of americans. Investors pouring money into private Companies Like uber because they are afraid of missing out on the next big thing. Is that fueling a start up bubble . Thats coming up on the closing bell. If youre unhappy with your 401 k plan you can take it to court. The Supreme Court calling for more transparency with companies managing retirement plans ruling workers can sue their 401 k prance for offering plans with excessive fees. Lets bring in john with todays panel and res401 k expert sharon epperson. John were you taken aback by this ruling its a bit surprising in the sense the whole idea of investors sawing 401 k plan brings a new precedent. Whats not surprising frankly is the fact is when you look at the fiduciary standard and serving investors properly thats not surprising at all. Where does this lead your company. You manage money for a lot of folks. Would i be able to turn around and say to you these fees are too high. It relies on the advisors. Whats at stake, i think about that, the good thing on me what this did is high like the best practices of the best advisors. Today they have a plan in place. They are serving them in a way i think a fiduciary would. To me its a great testament. Is it more of an issue for the Smaller Companies with plans that are saying set up a plan for me i want to do something for my employees and i dont have time to think about it. The risk is you set up a plan a long time ago, just trying to do the right thing for your employees, trying to get them into a nice retirement and thats where the risk lies. What the practice is telling you, though on a regular basis go back and review what youre doing. Review the plan. Whatever decisions you made many years ago that may not be relevance today. That was a unanimous decision out of the Supreme Court. Its strong indication that this is important. They did lay out a standard of care. They talked about care skill, prudence and deli against being the continuing duty. It does seem to me these are just the obvious ones going forward. Do you think it will create new liability, though for administrators around those four points or are you worried about that anyone would be worried about it. It clearly lays out to folks that precedent is being set. If youre following those guidelines i think you can i think it will put you in a better position to handle those issues in a pretty kind way. Just make this clear for everybody. Is this an issue that people can look at their plan and go back ten years and say whoa or is this something that starts today and moves forward. I dont know. I reviewed it and trying to understand the nuances of it. It opens up a whole can of worms if somebody goes back ten years. I have to believe even if youre managing you have to pay some attention. Thats the problem. What defines a competitive market lays for 401 k plans. If we know there are big large providers like a vanguard who offer etfs at super low fees does that define the market . How it is that youre supposed to make the case to a person selecting a 401 k plan how am i supposed to and make the case to you or anybody i should have been offered more products. Thats the challenge and the debate. The debate comes back to what issues are you trying to solve. One of the common practices is you have to do a really good deep dive in understanding the company, employees or in the case of an individual investor you have to understand where they are trying to go and how they get there. Im not sure it defines a standard. The standard is you have to do your diligence. Thats the standard that should apply to the individual who has the 401 k plan as well. What this draws attention to is a lot of individuals dont realize they are paying fees in the 401 k not just a free offering to them and now this highlights that and there are ways to check it out to see what your fees are. Dont get dissuaded by the fact theres fees. Thats part of having 401 k . You have a company thats giving you free money, matching contribution thats better than having a fee. When we look at investors they are worried about so many other things. Worried about minor fees in a 401 k plan really relatively small. Volatility is what they are concern. They are worried about the markets. And leads them into higher fee products. Thats right. Well leave it right there, john. Thank you. Have a great day. Time for cnbc update with sue herrera. Heres whats happening. Five people were killed dozens wounded after a bomb explode in the parking lot of afghanistans ministry of justice. It was the fifth major attack in kabul in just over two weeks and the third time Justice System employees were targeted. The ftc Consumer Protection bureau charge four charities with taking 170 million meant for cancer patients. Two of the charity, Childrens Cancer fund of america and Breast Cancer society will dissolve. The other two cancer fund of america and Cancer Support services will fight the charges in court. The Series Finale of madmen drew 3 million viewers. That was just a fraction of viewers for breaking bad and the sothe sopranos. Quarterback Everett Golson will transfer to Florida State for his final season of eligibility. He led the irish to the 2012 championship game against alabama. Thats your cnbc news update at this hour. Back to you. Thanks very much. Investors are trying to catch lightning in a bottle by pouring money into start ups like uber. Are these companies fundamentally better than the dotcom bubble . Well talk to one investor about it. Takata claiming millions of air bags defective. Its one of the most complex automotive recalls in history and which cars will be of a if he wanted. Thats next. Your desktop, that updates to all your devices. And you can share it with one click. Wow. How do you find the time to do all this . Easy. We combined every birthday and holiday into one celebration. different holidays being shouted back to work, guys i love this times of year. For all the confidence you need. Td ameritrade. You got this. Building aircraft, the likes of which the world has never seen. This is what we do. Thats the value of performance. Northrop grumman. 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. Welcome back. We begin here with dominic chu and a quick market flash. An update with regards to yahoo . We told you there were some stories from china daily about whether or not there could have been any kind of an import tax or ecommerce treatment. We have learned here via bloomberg report that it may be due to a proposed changes that the irs is looking at with regard to spinoffs in terms of the rules for spinoffs affecting some of these companies. Remember yahoo has a very highprofile highly valued stake in alibaba and whether irs rule changes could come ply indicate the spinoff of those shares in alibaba into a separate company on a taxfree basis. Again it involves the irs. So doesnt necessarily mean it will be complicated but what it tells us there could be some concern that maybe alibabas shares that are held biya. May not be as efficiently spun off as they were before. That may be causing the move. There was an extremely high surge of Trading Volume in 20 minutes leading up to the close. Ultimately the stock hit 39. 12 at its low and regular session trading on 3 million shares in the final minutes. Again some color behind what we think is going on over at yahoo . Well bring you more details as they come out to us here. Back to you. Thank you. News out a short time ago that takata is doubling the number of vehicles impacted by its defective air bags. The recall is the most complex consumer recall in the history. Phil lebeau has the details. A massive recall. Think about this. There are basically 2 a 1, 252 million vehicles on the road in the u. S. This recall means one out of every seven vehicles in the uss covered by this takata airbag recall. Total of 33. 8 million vehicles. It doubles basically the number of airbag recalls that we previously knew about from takata from 17 up to 34 million. It involves 11 automakers. Too many models for us to list individually. Most built between 2002 and 2008. At issue is replacing the airbag inflaters because these airbag inflaters have been linked to five deaths hundreds of injuries. When they go off, when they are deployed theres potential for shards of metal to be projected at the drivers. Thats the concern. Biggest concern with high humidity states priority will be fixing the airbags in those states first but it will take some time. Takata is increasing production of replacement airbag inflaters. That said even ntsa admits the complexity making sure the right inflaters are in the right vehicles and do the right work will take many years. There will be a test to ensure the final remedy will be safe. Period. Right now we know that the ones going in are safer. The concern is are they safe over the long term . As you take a look at shares of takata keep in mind what they are basically saying is 17 million already recalled some repairs have taken place. Replacement inflater may have to be replaced again. This will drag out for many many years. Its the largest auto recall ever and surpasses the tylenol recall so it becomes the Largest Consumer recall ever in the United States. Wow. All right. Phil stay right there. We want to bring in jack wellknown automotive expert. Whats the recommendation for drivers here . People are getting in gting inured to these recalls. What kind of impact will that have . Its a big problem. Big problem because people hear the news today they want to do something and largely there might not be anything they can do. The dealers may or may not have parts to make this replacement immediately. Thats a key issue. I was talking to the administrator of ntsa on friday about completing recalls. Certainly well have huge amounts of publicity today about this. As phil said this is going linger for days and weeks and months and perhaps even years. And a lot of these vehicles are also in the hands of second owners third owners thats a big problem too. Just in communicating to them. Phil wherefore the most part in terms of kinds of vehicles and age of vehicles do these defective air bags fall . Well most of the models were built between 2002 and 2008. To jacks point very few of these vehicles are with their original owner. That said there have been steps that have been taken by the federal government to work with automakers and part suppliers so its easier to trace people through vehicle registration lists to find the owners of these vehicles but it becomes very tough. When youre on the second or third owner private party sale people move. Its tough to track them down. 11 automakers are impacted. Were talking about dozens of individual models. For a lot of people what they need to do here if they werent covered by first recall, take the vin number go the ntsa website and that will tell them if their model is impacted. Safercar. Gov is where you want to go to. But thats why i think a lot of people want to do. How often are they updating this. It seems like you said theres so many models involved and they are constantly updating this. How accelerate is that website the list is accurate sharon. The list is accurate. It takes a little bit of time. If you go in there right now it is likely youll see every one of these . No. It will take some time for them to put recall reports in the system. It will be in there in relatively short order. The bigger issue for many people a they wont do it and on top of that youll have them driving around with vehicles that should be repaired and they wont be repaired. I know that because i own one of those vehicles. We dont drive it a lot. Youre not getting yours repaired. We want i want repaired they dont have the part. Thats the system. Because youre dealing with so many that need to be repaired its going to take many many years. So, you know, people are going to have to be patient. But persistent in making sure they go the dealership and the dealerships work with them. Phil now i wasnt super encouraged by that press conference where he was saying were getting parts that are safer but have to make sure they remain safe. What kinds of testing are going into this. How comfortable can we be about new parts going in. Weve talked about this before. They are doing testing right now with the 11 automakers looking for the root cause of these defective airbag inflaters. They still dont that have root cause. If you dont that have root cause its really tough to make sure that the replacement inflaters are accurate. Am i right, jack . Absolutely. This is a very very key thing for all the auto manufacturers. They know this. They want to solve this as much as ntsa does probably more so. They want to get to the bottom of this. Get it behind them. This is a massive undertaking as you know. Well leave it right there. Hopefully consumers have more information to get this taken care of. Phil lebeau and jack from kelly blue book this afternoon. Extreme circumstances call for extreme measures. California drought has kv homes that have new homes that can recycle water that uses water. And well look at how other retailers are performing in the after hour session. More close bell still ahead. Older son father hes doing it again father jebidiah, i told you its dangerous jebidiah but pa, im planning my retirement dont be afraid of technology. Use futureadvisor. The Award Winning platform that analyzes your portfolio and recommends Investment Decisions to help you retire sooner. Signing up Takes Minutes and the advice is free. Join over 250,000 americans and start on your path to retiring sooner today by going to futureadvisor. Com. Welcome back. We hear all the time is there now another tech bubble. Venture capitalist and private investors pouring cash for that next uber or into uber itself. Cheryl chang has a better perspective than most of us can get on how overvalued some of these private companies are. Do you have some concerns . We invest in early stage. Were usually First Institution money in. Our valuations are relatively controlled versus what you might be seeing or what you have been talking about in later stage round. At our level were not that concerned but definitely seeing it to be a good time to be working in tech and youre seeing that from different perspectives. It depends on which side of the table youre sitting on. We were very early investors in a Company Called waves. You can look at realtime application for traffic. Its owned by google. You need to get it. And really the insight there is maps have existed for a long time. If you need to get from point a to point b you know how to do that. But if you needed to know how was traffic, waze was like that. So that was a great investment obviously especially with the sale to google. When you look at the landscape where are you guys still finding value and how much money is chasing some of these start up names everybody from mark cuban to others said these ideas are not going anywhere and theres not any liquidity in these names and we dont know anything about their financials at least last time they were Public Companies this time they are still mostly private. Whether they are private or public thats one separate issue. What we really look for is industries that can be disrupted with technology at scale. So one area were looking at is Financial Services. So in the last financial crash you saw that a lot of banks pulled back. They werent doing Small Business lending. Lot of Small Businesses didnt have access to capital. Out of that came a Company Called cabbage. They look at different metrics one of which is social metrics. You talked a lot about etsy today. Youre an etsy Business Owner youre running a Small Business even though its not a brickandmortar business its still a Small Business. How do you take your etsy reviews and use the home translate them into your ability to get credit. Cabbage looks at those social metrics you as a Small Business owner should be extended credit and they provide a lending platform for these Small Businesses that traditional banks are pulling away from. They take the place of the banks. Exactly. If Financial Services theres a lot of regulations, heavily regulated industry cabbage your average loan is about 40 on annualized basis which is not necessarily the most fair. Very high Interest Rate and these people cant get loans in other places. As you start to get bigger start to grow youll get more regulatory scrutiny. How do you factor that into an investment . We let the market kind of dictate and the market gross and it changes. Cabbage very transparent. All of these companies are very transparent. Theres no hidden fees. They are not forcing you to take money. Small businesses have no other options because of Macro Economic conditions that have sort of pushed them into this position. So cabbage is taking a very communitybased approach and each company is going to be a little bit different. In cabbages case which im most familiar wthey take a very were here as your partner, right . Everything from their marketing collateral to their community to kind of the tips that they give you as a Small Business owner its around helping you build your business. The money is just one piece of it. So cabbage has started moving into debit cards that a Small Business owner can use so when they take a client out theres a way for the home pay and that money is being debited off of an account they took a loan on. Its giving you 360degree platform for Small Businesses to build their business. It sound fantastic but at what point do you guys look at the environment and say we cant justify paying these prices any more or theres too much money or not the there is too much money and not the right kind of money. Do you have any of those concerns right now . At Venture Capitalism as an asset class, probably there are some macro concerns. But were early stage. So that is the key. If youre in Venture Capital, what is your strategy within that whole asset class. We invest in a company when theyre sometimes three guys and a dog in a garage. Like an early idea. And so at that stage, you can put a small amount of money to work see how it does. And then invest more later. So for instance if cabbage came to you today or waves came to you today or one of your other investor you may not invest it in it because its too far down the line. We look at it as a discounted cash flow as and ongoing concern business that has to show that it can stand on its own the way you would look at versus your current style. Right. Cheryl thank you so much. Interesting research now to do as well for a lot of people out there watching. Still ahead, the bell may have run, but there is plenty of market Activity Still happening. Dom chu with after hours action. After hours action. When you do business everywhere, the challenges of keeping everyone working together can quickly become the only thing you think about. Thats where at t can help. With the tools and the network you need to make working as one easier than ever. Virtually anywhere. Leaving you free to focus on what matters most. More earnings after the bell. First of all, shares of scetsy sinking after hours. Shares trading below the 18 mark, just 2 above that ipo price itself. So those shares in focus. Also auto did deskesk taking a hit. The Company Continues to transition to a subscription based model. Its also offering weak guidance for the Current Quarter and seeks profits of 19 kreptscents a share. Analysts are expecting 32 cents on about 650 million this revenue. So those two shares certainly among the earnings movers today after the kell. Back to you. Earnings parade isnt slowing down tomorrow. Well get results from retail giants target, lowes oig and salesforce. Com salesforce. Com. Salesforce. Com. And salesforce. Com. Salesforce. Com. Excellent looking below the surface, researching a hunch. And making a decision you are type e. Time for a change of menu. Research and invest from any website. With e trades browser trading. E trade. Opportunity is everywhere. Welcome back. Lets talk a little retail. We have etsy earnings which i want to circle back to. We talked about it share price reaction. Pretty severe down 14 after hours at 18 bucks when they listed it 16 and a were above 30 on that day one of closing. Company pointing out in its defense this had a lot to do with changes in its corporate structure, one time items that masked continued revenue growth. Journal story make this is apparent as well. All of you said give the company the benefit of the doubt. But investors are shooting first here and asking questions later. I think that that always happens and especially this is a brand new stock. Its one of those stocks that doesnt have a history yet and its kind of cutting edge in terms of its industry. So i think youll continue to have a lot of volatility like this, and so if youre in it you have to know that. Youre not buying johnson and johnson. If youre in it youre a trades er trader. Youre looking at these names in general. If youre longer Term Investor try to use etsy become a member of etsy. Maybe you have a hobby, you want to see how it works. Feel it out, see how the Business Model works for you. Its been public for a month. So if youre trading by now youre not a long Term Investor. . Weve certainly seen this volatility in a lot of other names. Susan susan, what do we watch to tomorrow . I would say tomorrow its interesting. We have target and lowes tomorrow. Parallel to walmart and home depot today. Interesting to see if the retail down housing upholds. All right. Great to see all of you. That does it for us on closing bell. Fast money is coming up. Melissa, you guys will start to get word out of that call . We are. Well track that call and trade comments off the conference call. And speaking of retail childrens place is a couple dollars off its 52 week high but well talk to an activist looking for either change in management or perhaps a sale of the company itself. All right. Straight over to you guys. Live from the Nasdaq Market site im melissa lee. Traders are on the desk. Tonight on fast the apple tv mystery. The journal says apple is pulling the plug but carl icahn reveals something he shouldnt have. Plus walmart tanking, could it be good news for stocks . But first to the news of the night. Yahoo s stock tanking into the close on fears that investors could be hut hit with a massive tax bill. Dom chu has more. Its a tax implication here. We dont know exactly what it will be but this is a bloomberg report and story saying the