Transcripts For CNBC Closing Bell 20160329

10 of wells fargo, that is major money were talking about right there. And the fbi hacking into the iphone of one of the San Bernardino phones without apples help. Its the outcome and is it a bigger black eye for apple or the government . Well have both sides of the debate. Who loses the most in the outcome of this whole situation, apple versus the fbi . The Broader Market is getting a nice boost after janet yellen said caution is warranted. Gold rallying under comments dollar went low are and yields went lower. Financials, which of course would typically benefit, they are under pressure today. The worst performing sector in the s p. Lets get to Steve Liesman with details. Youve got to be asking yourself after this speech by janet yellen has the fed quietly retreated from raising rates, what it dubbed rate normalization, will it ever hike again . From gold to fixed income to stocks, laid out a dovish outlook for rates at this much anticipated speech at the Economic Club in new york and suggested greater gradualism is warranted in raising rates and emphasized the risk from Global Economic weakness. Given the risk to the outlook, i consider it appropriate for the committee to proceed cautiously in adjusting poli policy. The fed chair is clearly in no hurry to undertake the next rate hike. Credit suisse, curiously the speech focused on downside than the upside. Several members pointed to the possibility of an april or june hike if the economy improved but yellen offered them little possibility of a rate hike next month. She also questioned the one obvious reason for hiking, rising core inflation, she had her doubts that the rate will continue. Weakness overseas is another way of yellen saying shes find with where bond yields are pricing and agrees with what the market has baked in. Steve, lets show everybody whats happened in the last dumb of days. Expectations for growth have crashed for the current quarter. Perhaps that feeding into the tenner of her comments here. Otherwise there would seem to be no real change since the last time we heard from him. I think thats right the fed is reflected in what we do, a lot of folks have brought down that number there for First Quarter gdp, now tracking at around 0. 9 is our average, i think that atlanta fed is 0. 6 but that moves around quite a bit. Overall what she has to do is reject the strength in the job market and really say that what happened in december is no longer the ruling policy regime the fed is in. Its very hard to listen to the fed chair right now and know what data has to follow in line for the Federal Reserve to hike rates the next time. The feeling around here on the floor, this was an attempt by her to cage the hawks if you will on the fed. I want your thoughts on what the response may be from them. Weve been getting the confusing back and forth the last couple of weeks here from both hawks and doves on the fed zpl i think theres a problem here. If i have to say, your bri brilliant and accurate journalist, it was not from the quote unquote hawks and people voting against dovish policy. It was from centrists like John Williams and dennis locker who got my attention when they started to talk about april. Where you have an issue where the center of the board is leaning more towards an earlier rate hike than the chair, i think the chair has a problem. Maybe this speech today tells them look, we aint going there and you should stop talking about. And the opportunity of course to talk to chicago fed president tomorrow morning on squawk box. You dont want to miss it. With us susan fulton from fbb Capital Partners and rick san telli from chicago. John, is this like the all clear signal again, this is the stock market going whoo hoo, no rate hike . Think the market is looking at that on a short term basis. 12 30 on tuesday was something that we were looking for. If you look at the chart of the markets, it doesnt seem like the markets opened until this afternoon. It was relatively quiet leading up to that. On a short term basis, investors are happy to get the information, adding a little bit of clarity as to what they are thinking and how they are going to proceed to move forward. Economic data really hasnt supported any real reason to make a major decision now. And we are continuing to see some of this kick the can down the road. The longer we kick this down the road, i think we might have trouble there. Well get closer to november and a lot of turmoil can happen at that time. The fed is going to have to if they are going to do something, they have to do it sooner rather than later. Susan, do you like what youre hearing from the fed chair in the way they are steering policy . One of the big problems we have, this is not about us, its about europe and asia. And the decisions that yellen is making, i told i said last year three times on this program, that there would be no rate hike. Im willing to make a statement right now there wont be until january of 2017 because i think the International Situation is too dicey and that our situation is not so hot. I mean, profits are slipping with companies and were in an incredibly tu multiuous election with a lot of emotion around it. I dont see rates going up in the near term. Rick, so dollar goes lower and yields went lower and stocks higher. Are we to assume that one when the first does raise rates, it will be the opposite, youll want to sell stocks and treasuries and buy gold i guess at some point or buy the dollar . Bill, i think its really hard to tell, first of all, i think well be having this discussion in another two or three years as well. Ive said it a lot of times on santelli exchanges, we have made the current rate structure and world is recalibrated down to this. And our countries that followed in our policies, i dont think theres any switch the fed will find in any hidden room or type of video game that could just boom, its normalized. The fabric has changed. One of the questions that was asked, first questions to janet yellen about the state of the economy, i will read her answer, its brief. It sums everything up. I think with respect to the internal spending and how the economy has been doing. It progressed in a remarkably satisfactory manner. Remarkably satisfactoriry manner. A, that doesnt fit with the notion that were within 4 of striking distance of the all time high of the s p. Anybody who doesnt think this equity parade isnt directly correlated to the fed and central banking and Central Planning obviously isnt paying attention and as to change the dynamic, our guest susan said they are not going to raise, they are going to cut. Shes probably going to be right. Art cashin is going to be right. You know whos going to pay that price, all of the countries and debt and mediocre economies and the growth rates because we put forward probably five years of activity. Susan, i wanted to point out the names trading at all time highs include General Mills, cocacola, tyson foods and some real estate storage things. Those at least even the beginning of the trading session were at all time highs, are those the types of names hearing from the fed and where you think were going that you would stick with or looking into other parts of the market here . Susan . Im sorry, i think were really in the position where were in the 50s again and im very old. I remember when two or three percent mortgages were normal and that lasted for 20 or 0 years. We have a flat world and we have a flat world that has a lot of economies that are weaker than ours who are going to be continuing to lower rates. I like consumer goods, i like consumer goods. I like anything but financials. The financial industry is counting on Interest Rates going up. Yeah, i agree with you, susan, not that anybody asked. Before we go, were going into the last hour, what kind of levels are you looking at here . Wheres resistance do you think . Actually, resistance is right here, 2050, 2053 has been this resistance level looking back in the last four to five months. Early indications on bell, i think were going to continue to test that. If we close above that, i think with Economic Data coming out this week were going to continue to rally higher. I would go to 2060 on the next level. Thank you folks. Nice to see you, as always. Thanks, everybody. 50 minutes to go throughout the session. Its a mirror image of what we saw this morning when the dow initially was lower by 100 point points. The s p adding 17 and back above 2050. That was the level in the past where when the dissent came from fed members, stocks are pulling back and weve shot above that level and so transports are up 84 and nasdaq up 79. As you know, the government dropped its case against apple after finding a way to unlock that iphone without apples help. When we come back, well talk about whether the government could have avoided this whole nasty public brawl to begin with. Team Management Experts will weigh in. Youre watching cnbc, first in business worldwide. Here at td ameritrade, they work hard. Wow, that was random. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. 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And i recommend that every homeowner who qualifies consider getting one now. Call one reverse mortgage right now welcome back, a leave tags across markets after remarks from janet yellen came in much more dovish than people expected and perhaps only one rate hike this year, thats what some analysts are suggesting. What a surprise. Look at the financials on the bottom of the heap. What did we hear from susan fulton. In this market she would buy anything but the financials and Technology Top left of the screen, thats the s p sector strongest. Those rate sensitive plays, utilities and Even Health Care up better than 1 . Few of the movers to tell you about this tuesday, sun edison may be on the verge of bankruptcy, from a filing by a holding company. Sun edison amazed 1 million of debt and has delayed its release of its 2015 annual report twice. If sun edison does not file by wednesday, or face a possible technical default. The wall street journal reported that the sec is investigating whether the company over stated its liquidity in late 2015. It will have sufficient liquidity on its own if its parent files for bankruptcy. Chipotle, the firm slashed the price target to 400, from 450 and trading at 460 and says the burrito maker will not recover sales lost from the nora virus and e. Coli outbreaks until at least early 2018 and thats the best case scenario. The government dropping its legal battle against apple after finding a with a to unlock the shooters iphone without apples help. Heres the story and it looks at the governments efforts to search for work around here. One of the questions being asked now after the stunning announcement that its going to drop the case in the whole apple versus fbi fight and government also saying that its already gotten access to farooks iphone from a technique given by an unknown outside third Party Last Week and that has proven successful and said its gotten information off of that phone. One question people are now asking, whether the fbi and the u. S. Government generally really did exhaust all the options before going to apple and making this case in the first place . You remember early on the fbi said only apple could help unlock this phone and thats why they are making this extraordinary request. But last week when they said there was an outside third party that had come to their aid. They said they never stopped seeking outside solutions to this problem all along and also said they consulted with all of the u. S. Government presumably presumably that includes the National Security agency and their experts and computer experts over there. Though the fbi i think hasnt said that significantly yet. Could the fbi have done more here. Thats one question that skeptics are asking. The fbi says simply were working on this all along. We found the solution last week as soon as we had something we made it public. The end result is that the debate now on that particular phone is moot. The larger debate over security and privacy will continue for some time. And perhaps only get louder. Thank you. Its not clear which side ends up looking worse. Lets talk about that. We have both sides of the issue, mark grossman, a Technology Lawyer who says the government blew it and randy zellen says the government did everything right. Mark, what do you mean . Just the fact that a few weeks after they stir up all of this controversy in court with this ancient revolutionary war statute, that they can find a technical solution, it tells you they blew it. Why didnt they wait and try harder . This was not miracle stuff. Needed to go public to solicit the right people to help them get into the phone. Do you buy that . It looks like the company that is rumored to have found the solution entered into a contract with the fbi five days after San Bernardino. No one is 100 sure but thats an interesting factoid. I give the round to the government. I will take your coin and completely flip it around. To me the government did everything it could have done and should have done. It went to apple for help. Apple was like, sorry, cant help you, so what do we do . We go to deaf con three and court and say, judge, i need you to get apple to get me into the phone. The fact that apple didnt get the last word and government got the last world and reminds me of that scene in risky business, bye, i dont need you apple, got it taken care of. Let me point out as well. When we polled viewers you about how they felt about the situation, actually apple comes out looking worse. Not a scientific poll but way of gaining sentiment. People are saying its pretty obvious the phones can be hacked. 60 to 40 this is a bigger problem for apple here. There is no such thing as a fine word when it comes to security. Its always measure, Counter Measure and counter Counter Measure. Apple will attempt to plug the newest hole and theyll lose that round and plug another hole. Its always what you can do today and hack today. Randy, why take him to court if youve got other options . It suggested that apple was the only entity that was going to be able to unlock that iphone for them and put them on the spot and backed them into a corner that forced tim cook to become this symbol of privacy in the United States when in fact they had other possibilities, didnt they . Its very interesting, to me you always default back to if you built it, you ought to be able to take it out. Why should i go elsewhere. Im going to go to the person who made it. So for me, its where it starts and stops. When you talk about security, the big issue and difference here, apple is protecting the security of its brand. The security of its business. The security of its relationship with china. The government is interested in the security of keeping us all from getting blown up. Thats a big difference in protecting an interest. Mark. You went into the politics of the issue and congress does need to act in this area, no doubt about that but so far they abdy indicated, unfortunate but the reality. Heres the netnet, the fbi could hack the phone and did hack the phone, it took them a few weeks, creating this public controversy in the face of congresss abdication made no sense at all. We can only say that now because in the intervening period no one else got killed or shot. Tell that to the 14 people killed, their families and 22 people who are wounded. Not so simple an analysis. All right, it has been a tough controversy that weve had to deal with the last several weeks. Thank you both. Thank you. Were heading to the close with a little less than 40 minutes left and the rally continues. The dow sitting at the highs of the session right now with a gain of 103 points and look at the nasdaq, my goodness, a gain of 1. 7 . That Technology Sector really booming. Susan said she didnt like the financials here but billionaire investor Warren Buffetts Berkshire Hathaway has a 10 stake in wells fargo. Why he could face more scrutiny . Will Restoration Hardware, what they are going to release the final earnings after the bell after ugly numbers last month. Do you remember that . Well tell you what to expect coming up. Technology up today but financials have lagged especially in light of Janet Yellens very dovish comments today. The xlf has turned positive and we saw financials had turned positive as the sector in the s p but the high profile companies, bank of america and citigroup and jp morgan one of the great movers, just checking five of the 30 dow stocks are lower and jp morgan is one of them. Berkshire hajaway is takes wells fargo to 10 . Buffetts Berkshire Hathaway had tody close that the stake reached 10 , that typically requires more regulatory scrutiny and in the case of banks, that means a case of the Federal Reserve and stake that large is usually deemed to be a controlling one. In berkshires filing, it did no require the shares to exert control over the company. Buffett said he had been buying more incremental stock in wells fargo and cocacola and american express, the other two companies that make up the big four. The stakes increase because those companies had been buying back their own stock. Of these big four, he prefers his holdings to be what he calls noncontrolling but substantial because the returns on equity range from excellent to staggering. The official statement from wells fargo, we value Berkshire Hathaway as a long term shareholder and customer and appreciate the confidence that the executive team has shown in wells fargo. It is not a new fen nom monday, berkshire has been a shareholder in wells fargo since 1989. So they have been voting with their dollars for about 25 plus years at this point. You make it sound like 1989 is a long time. Such a long time. We were talking about the 50s today so that seems relatively recent. Warren buffett will often say when hes considering investments or Different Things, should he spend a dollar in anything else or put it into wells fargo . What does that 10 level change or mean now for his holding . You know, it does bring some add mrtdive headaches. There will be more disclosures youll have to provide. More than the normal quarterly findings for the shareholders and for a name like wells fargo, paying off for some time now, that would seem small in the grand scheme of things. The reports today have calculated an average cost of about 13 billion that berkshire has spent over the years on wells fargo stock. Today Social Security worth 25 billion. Hes done okay for himself. Ill belt he doesnt have to pay a. T. M. Fees either when he takes cash out. Just a thought. I havent confirmed that, sorry. Thanks, kayla. They jack it up at all of the other a. T. M. S though. Heres whats happening at this hour, democratic president ial candidate Hillary Clinton holding a forum on gun violence in milwaukee. She pledged to combat gun proliferation and violence if she is elected president. Massachusetts is launching a probe into whether exxonmobil misled investors and the public about the risks of Climate Change. It comes a few months after new yorks attorney general subpoenaed exxon to demand extensive financial records and emails in connection with Climate Change disclosures. A los angeles judge will not dismiss janet did insons defamation suit against cosby. Her claim that the comedian drugged and raped her in 1982. Patty duke has died. She rose to fame in the early 60s playing identical cousins on the patty duke show. They won an Academy Award at age 16 for playing helen keler in the miracle worker. Patty duke was 69 years old. That is the cnbc news update. Back to you bill and kelly. A great lady, gone way too soon. Thank you, sue. Were heading to the last half hour of trading here with the dow just continuing moving gradual ohhig higher up 106 poi. We have a leading trader joining us to tell you what hes watching into the close. Alpha get may be facing leadership chris sis, two Management Experts weigh in on how big a problem this could be for investors. Stay tuned. You both have a perfect driving record. Perfect. No tickets. No accidents. That is until one of you clips a food truck, ruining your perfect record. Yup. Now, you would think your Insurance Company would cut you some slack, right . No. Your insurance rates go through the roof. Your perfect record doesnt get you anything. Anything. Perfect for drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. And if you do have an accident, our claim centers are available to assist you 24 7. For a free quote, call Liberty Mutual at switch to Liberty Mutual and you could save up to 509 call today at see Car Insurance in a whole new light. Liberty Mutual Insurance. The gopro chip suppliers upgraded to overweight, thinking the Business Outlook may have bottomed and autos and surveillance and drones and wearables, now up 10 . Less than 30 minutes left in the trading session. Joining me on floor is gordon charlat. Was Janet Yellens speech an all clear. Is now with this dovish tone that shes set yet again weve got this rally going . There was a little bit of a bounce and clearly it was a reaction to that but i dont think the implied volatility was telling you that nobody expected them to be raising rates any time soon. This is just reinforcement of what the tape had been telling you. Is this the kind of rally you want to fade or are you going to go with this thing . You dont like to fight the tape but a couple of things you have to take into account. One of the things is that supported this market has been buy backs, when you get to the black out period, 25 Business Days before earnings, they have to start fading. If i get my abakiss, out you can see some volatility to the downside. But ultimately we still seem to be trend is your friend and going the way weve been going today. I think traders right now, institutional guys are starting to focus on april earnings and then really, more so than any time i with remember, you really have to look at the president ial election year. Both of the frontrunners are giving wall street some concerns about little pause there. A little pause of what the direction is going to be moving forward. Ive seen that ab ba kis of yours. Used a lot lately. Thank you so much, really. Pleasure. Alphabet may have a ceo crisis, as a result of the restrict touring plan back in august, they have assigned ceo roles to eex of the ventures, youtube, calico and access and energy which oversees google fiber project. Now they are under scrutiny as struggles of running these companies are coming into the spotlight. Joining us right now is former medtronicceo, and dean for leadership studies over at yale. Good to see you both. Theres a pretty lengthy account that feel as though they are not getting the resources they need and their Growth Prospects are being choked off here. Do you see a sort of systemic problem and one that is kind of the way google is trying to go or alphabet and being better for investors or one that will damage shareholders here. Kelly, when google put this alphabet structure in place, i applauded it because the biggest challenge is to find some oil wells to continue to sustain their growth. But the question is they are putting this kind of team of race horses can larry page guide and direct them and keep them under control and got a couple of mavericks and they are not going to all work out. Google and every one of the ventures, whats the unique capability we bring to the party that makes it special or is it something we want to spin off, looking at the robotics business right now. And where can we how do we what perimeters do we put on them so we keep them in check to give them their freedom. This is a tough leadership call. And i think hes going to have more dustups like this before its over but i still applaud the model and think a lot of these things are very exciting and they are going to see can they prove it out. One of the most senior google executives told me, jury is still out how this is going to work. Its a noble experiment. Jeff, what do you think . I know you think this is just growing pains for most part. Should they give more autonomy to each of the ceos they are assigning to these divisions . You read me exactly right. I dont want to disappoint you, but as i read what bill george just said, it sounded like he was 80 20 positive. And i think im about 90 10 positive on this. I think youre right. There are growing pains but one of the life stage dynamics is the life stages of founders, we have just seen as we look at pandora today, a founder returning and seen in recent months with jack dorsey and playing off the model of michael dell or Howard Schultz or the late steve jobs is that sometimes they leave and come back and in this case its more an ambassadorial model, they want to stay part of the business but give the chance for opportunity for Growth Without holding the core business back but the new businesses have their own life stages. And the challenge there, what is their model . Do you remember when you had those internet really incubeators of cmgi and those that blew up because there was too much of this and you have conglomerates and we had a story on, tyco went too far, those are mature businesses, whats the model here and thats the challenge. A place like zeer ox, they have to be a judge. There has to be somebody to decide not just to be ambassadorial. Go ahead. Thats a very good point. Theyve got to decide what the unique expertise they did a fabulous job in optical lenses and wound up selling it no to novartis. Do they want to control the software . What about moon shots . What role are they going to play . This is a real test for larrys leadership. I have confidence in what he can do but how does he keep this stable thats the challenge, bill. He sees himself as recruiter in chief and i think youve nailed it. He has to be more than recruiter in chief and somehow make more than ambassadorial decisions and figure out where they invest. You look at project bringing internet to half of the world. In a way this is evolving as a tradeoff at least on the surface between alphabet trying to give investors more clarity over what these different divisions are up to and what they are doing and the divisions themselves feel their wings are clipped as a result. That wrong, bill . Does that tension have to exist . No, that tension definitely exists. The issue here, they are operating in a gold fish bowl. We did something very similar at medtronic. We didnt give quite as much visibility as google has and we let people go. And frankly half of them failed and we had a few grand slam home runs that are fantastic. You have to have a high tolerance or failure, which i think google has but at the same time you cant let them go off running on their own and spending billions of dollars without some form of corporate oversight and constraint. Were used to that we are we said wouldnt it be great if we could get bill george on jeff on to talk about it and they both said yes. Thanks as always. Thank you, bill. Thank you, kelly. Thank you, we have a news alertd on tmobile ceo john ledger. Tmobile ceo john ledger using a segment for yesterdays closing bell as a starting point for a tweet storm attacking at t and verizon and tmobile binge on Video Service and talked about video streaming speeds as a key differentiator. He talked about netflix admitting they throttle data for some users. Tweeting everyone is watching video on mobile and binge on is giving customers with 4840 p with good relationships of streaming services and talking about streaming video faster. He went on to say customers have the option to turn on binge on and doesnt count against data caps and accuse verizon and at t knowing they were streaming lower to their customers. This is a story thats been going on for days and theres been so much happening in the world that being able to air the discussion was overdue. Its interesting and in his play book that hes going after at t and verizon but those two companies seem to be furious at netflix for this disclosure, if he was going to aim at wrath at the bad actor here, i guess netflix would be that actor but that wouldnt achieve his objective as painting the big two as bad guys. In terms of what john ledger is doing, hes saying the real differentiator all about content and video in particular. When it comes to this netflix issue, they add mitded to make sure that all customers got the highest quality possible and still had the video work. Netflix explained what they were doing in trying to go to lower data speed. What john legere is talking about, how they are doing things differently with bing on working with Companies Like netflix. Its about the Competitive Landscape but netflix did take ownership of the move that john leger e is using tmobile saying they are one of the more consumer Friendly Companies out there. The battle continues. Thank you so much. And thanks julia. Hi, john, if youre still out there. 15 minutes left on the trading session, the dow is up 92 points. I start watching for art cashin to give a sense of the market but still the rally continues here. Not a good year for Restoration Hardware shares, were going to preview the high end furniture companys earnings after the bell next. Later, are longer and more complex pass words harder to crack . A special report coming up. Youre an at t Small Business expert . Sure am. My staff could use your help staying in touch with customers. At t can help you stay connected. Am i seeing double . No maam. Our at t buy one get one free makes it easier for your staff to send appointment reminders to your customers. And share promotions on social media . You know it now im seeing dollar signs. You should probably get your eyes checked. Good one babe. Optometry humor. Right now get up to 650 in credits to help you switch to at t. Restore hardware reports after the bell today. Courtney reagan previews the numbers for us right now. Restoration hardware is speaking to investors after the bell a month after preannouncing Fourth Quarter results of earnings 99 cents per sharon revenues of 647 million far below analysts estimates, which sent shares plummeting 25 . The retailer blamed the dismal quarter on vendors struggling to ramp up for the new modern product line and sales under performance in regions pressured by oil price and volatile stock market and failure of increased promotions to entire purchases. In order to normalize these promotional levels, they launched a Membership Program two weeks ago. For 100 per year, the rh gray card gives members 25 off every day. 10 off sales merchandise and early access to clearance events and free interior design and services. It tells the Adviser Group Analysis Shows Restoration Hardware increased original prices on 70 of the items in its sample by about 6 , making a member discount more like 19 . Add in the increase in standard shipping charges from this fall and rh can maintain those margins. Its a consistent trend to see more afluent customers among the reward and loyalty programs. It is losing less frequent shoppers who dont see the value in the annual fee. Well see. Were not sure what theyll be able to share but there are a lot of questions. Exactly, a lot to get to in that report. Thank you. Thanks, courtney. Ten minutes to go, s p up 16 today. Nasdaq, the strongest performer. By the way, art cashin just signaled that the market on close orders, 350 million to buy. So the buy is to the upside. When we come back, is a smart idea to buy it close and sell at the open. Well look at the chart that suggests that it does and get a reaction coming up. I invest with e trade, where investors can investigate and invest in vests. Or not in vests. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Plan your never tiring retiring retired tires retirement it begins from the the second were born. Er. Because, healthier doesnt happen all by itself. It needs to be earned every day. Using wellness to keep away illness. And believing a single life can be made better by millions of others. As a Health Services and Innovation Company optum powers modern healthcare by connecting every part of it. So while the world keeps searching for healthier were here to make healthier happen. Less than eight minutes left, kevin, how have you been . Im good. Are you buying this rally here . Were not really ready to commit for capital yet but were looking at things that are moving in the right direction. When we look at credit markets and they are feeling better and were seeing tightening of spreads, thats good. And we havent seen that yet so it feels good but we dont know whether or not it translates into higher earnings. Youve got a km of different factors to watch in the meantime. There are people pushing up the consumer names and General Mills and cocacola, anything with a dividend here. Does that feel right to you guys . Sure, well, the consumer has been one of the morsteaddy places in the market. As weve seen stress come in in the last year and year and a half it would make sense to move to the thing performing most consistently. When you look at jobs, those increase and wages start to get better. It does make sense were seeing a bit of a lift in the consumer names. Our friends at the Investment Research put a chart together that suggests that lately its made good sense to buy on the close and sell own the open given the market patterns recently. What do you think about that . Its a lot of trading and if youre doing a taxable account, theres tax paid with commissions. If you go back to 1993, i think the s p dumped 600 if you reinvest the dividends. The better play would be to buy and hold investor and hold for 600 , rate of return including dividends back to 1993. Unless you like the active trading aspect, you would be better off to stay long. People feel wait a minute were 4 from all time highs and this have sluggish environment and things feel toppy and cycle feels its turning. What if i dont trust the returns i can trust over the next couple of decades. Youre still going to be in the market. The point of their strategy as best i can figure, youre going to basically be long during different hours of the day. So its still a long strategy. They are saying what is basically what has been working thanks. Good to see you. Were going to take a break and come back with the closing countdown. After the bell, mergers and ak siss on the verng of taking off now that Virgin America is up for grabs. Gordon bethune gives his take on the airline space. You both have a perfect driving record. Perfect. No tickets. No accidents. That is until one of you clips a food truck, ruining your perfect record. Yup. Now, you would think your Insurance Company would cut you some slack, right . No. Your insurance rates go through the roof. Your perfect record doesnt get you anything. Anything. Perfect for drivers with accident forgiveness, Liberty Mutual wont raise your rates due to your first accident. And if you do have an accident, our claim centers are available to assist you 24 7. For a free quote, call Liberty Mutual at switch to Liberty Mutual and you could save up to 509 call today at see Car Insurance in a whole new light. 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Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Ahhh. Coming up on the last two minutes of trade here. Bob pisani joins me. See if you can tell when the text of Janet Yellens speech came out. Im not good at reading charts. Theres the dow first. Right after the open i doubt that. Midday, 12 15, 12 20 when the embargo lifted and up went the market, all clear. On the dollar index, what it do to . Just the opposite. The dollar index moving lower. The 10year, all yields went lower but the yield curve steepened because the twoyear went down more in terms of yield than the 10 and 30 although they hit fourweek lows threeweek lows and twoyear hit a four week low. Lower rates all around. And gold went down gold went up because the dollar went down. Theres what happened today with the janet yellen speech. People keep messaging me why havent we rallied more . I dont know what people are looking at, the s p moved 20 points in the last couple of hours. I think thats pretty impressive. Were a post recovery high. Were essentially breaking through the old levels that we had. So technically its very important and the vix, the vix has collapsed put that up here where essentially at 13 now look at that. So were down near the lows for the year. Might not be exactly the low for the year but lets not get too crazy about it. People hate when i say this but janet yellen has made it very clear, theres a put in the market again. Shes reemphasized that. For the average person out there, this is a reassurance that will hit new lows again. Up 100 points on close. The great folks the saint jude ringing bell at the stock market. Stay tuned for the second hour of closing bell with kelly evans and company. [ applause ] welcome to the closing bell wt. Heres how were finishing on wall street, the dow going out with a gain about 100 points on the nose, a half percent increase. The s p the broad index up 18 points, 2055 and change is the closing level there. Nearly a 1 gain and outperformer, strongest of the major averages is the nasdaq up 1. 7 and they are awaiting results from Restoration Hardware. Well bring you those numbers as soon as they are released. Joining us onset, we have senior markets commentator Michael Santoli along with carol roth. For more on the market action, larry is jumping in the fray here as well. Mike, this is a were down 100 at the open. Janet yellen speaks and we close up 100. Clearly a certain number of investors needed some kind of reassurance that her message was going to be consistent with what it was a few weeks ago in december. It has been pretty consistent. I think maybe there was a little bit of fear that the other fed officials were sent out to convey some sort of impatience to go against the expectation that rates wouldnt go up until june. There was a little reserve, sideline money waiting for that confirmation. But honestly her message while dovish is not that different than what she herself has been saying for a while now. Carol, assets broadly are taking it as new information or just kind of a picture of a world that in which the fed is less active than perhaps they thought earlier oh, my goodness, im so over the fed. I cannot tell you. I thought back in december that maybe they were going to put their big girl pants on and say, okay were going to get back to normal and weve had speak from janet yellen and different members of the fed that seem to contradict that. Im going to Say Something a little different than michael on almost a daily basis. And the fact were not were getting diedance we would hopefully get that would be more hawkish, were back to this dovish tone. Its time for the fed to get out of the way and let these markets normalize. We cant continue to go on like this forever and ever, it is not good for markets and not good for the average american and investors and its so frustrating that you have a day like today where it komsz out and has a dovish tone and you see the market completely rally again. Its like one of those multiple choice, which one of these doesnt fit. You have the strongest job growth weve had in decades and markets near all time highs and horrendous gdp growth. What do you make of whats going on here. At the end of the day it is critical here. Despite the strongally, this was anything but a bullish day for the u. S. Economy. To the contrary, the fed is sending mixed messages and showing we need a fed induced rally generally not to be trusted to support the economy. Its the fed saying things are weaker so well back pack. How is that positive . . If you want to see rotation in commodities and weaker dollar and gold, its definitely not a message to the u. S. Economy. The critical message is the fed is sending mixed signals and economy doesnt like mixed signals and contradictory notes coming out of the fed. And thats what were getting here. The positive is Federal Reserve policy and outlook and intentions that match current conditions, and thats what the market got upset about, the idea that perhaps the fed was going to be on its own schedule not necessarily paying attention to what by the way, the rest of the world is doing and other Central Banks are doing. If you go back to december when they say were going to move now so that we can move gradually over the course the next year. They are growing gad yoully. Bank of japan has gone negative, they tightened by default. Ill agree with larry. I think in terms of the actual data, that things dont look rosy at all and the fact that you have a market that supported at the valuation in the levels that it is, based purely on fed intervention to me is not a good thing. And by the way its interesting larry, i was going to say, the movement weve had in markets year to date has been pretty unusual. We took one of the worst starts to the year weve had in history then we rick shayed right off that and where we are today. You have to wonder has that much changed between january and april . Look at the volatility, starting to move up, certainly moved up last summer, spiking dramatically and began to move up earlier this year and fallen off a cliff. Thats a sign of complacency in the market. The market is uncertain and volume and volatility are really critical issues. The fed is not just being dovish here. They are being downright chicken. They are afraid to take action. Any kind of action that might further derail the economy and push us into negative territory we have hawking and doves and chickens and you can see on the screen, Restoration Hardware earnings are just starting to cross. Yesterday we were talking about one of the areas of this market thats been outperforming, the home buildings, its the fact that the case shill erin dex was up where is the economy strong and whats going on here . One thing you can absolutely say, its a relatively tight labor market. So yes, that segment of the housing economy should be a little bit of a driver and little bit of a lift. What you did see as well, that kind of trade that goes on when people think liquidity will be plentiful and lower for longer in terms of rates. What do you make of technology and strength of the nasdaq today . I think it was more real buying getting in, people saying lets raise the risk level a little bit and look for a little more growth as opposed to the bond like stocks that have been performing for a while that have really been the whole story. I think you have to be careful with Something Like the Home Builders because i do think that the lack of supply is driving those that pricing more than anything else. However, i think there are always opportunities to find interesting names, one that was very interesting today still remains interesting is twitter. Its back below an 11 billion market cap. From my perspective, this is a platform worth well more than that. We talked about this many times, management potentially getting in the way of that a little bit. I think there are an individual opportunities and i think the tech sector is one of those that has individual opportunities not necessarily buying the sector as a whole. Larry, what about you . Are you supportive of that point but also where are you seeing individual opportunity here . Well, its interesting, we look at Restoration Hardware earnings, the wortd that comes to mind is train wreck. Its been an execution issue for this company. The housing sector has brought us here. This is the nexus of housing and consumer all of these issues. But the housing issue wont lead us from here. We need to see a rerotation in weak value names. And maybe give us a tail wind in overseas earnings. Im optimistic with regard to the weaker dollar benefitting earnings but thats shosht lived. We need economic strength. We go back to Restoration Hardware again, execution is chipotleesque and thats not good for a company. You did the chipotle thing, my dad does that thing. Courtney . Restoration hardware did announce political results about a month ago, actually earnings per share, they were previously announced 99 cents now were looking at 98 cents per share. A penny less in preliminary results. Revenues still in line with what Restoration Hardware reported one month ago. However, what is new is the outlook for First Quarter or current quarter, very light. The company is looking for 4 to 6 cents earnings per share and the street was expecting 17 cents for the First Quarter. Revenues also lighter and range that was given below what wall street analysts are currently looking for for First Quarter for Restoration Hardware. Look to hear more from the ceo in a video presentation and call following that and perhaps some of the guidance a why they are pulling it back down. That does seem like a big miss relative to expectations and stock is down 3. 5 . Interesting tale is what happened with the launch of rh modern which they compared to the iphone saying it could change the industry and fit a need out there but they have major supply issues getting that product to market. Months of delays and that raises questions about the operations and succession ha has to work for the clientele. Every step of their execution, i think that was an ugly warning, the preliminary results, remember blaming the stock market in january as well as other things as well as the currency and weakness in it was very much pretty much blaming whatever you could find for that number. Im not surprised that the market is sort of keeping the stock down at these levels i think what mike is saying, they have a company handshake that looks like this, they are pointing at anything except for themselves and i do think this is a particular issue thats related to this company. I dont think about coming off of this i think this will take quarters and quarters whether we can see if they have an ability to turn this around. The shares are down 3. 5 . Not that bad compared with how low that guidance is the 52week high is over 106 and currently trading below 38. Its like a limbo contest, they keep lowering the bar. They have a very Loyal Customer base. At the end of the day it will save this company. If youre a contrarian, maybe rather than buy the stock, go to the Restoration Hardware outlet and buy the new collection at 50 off. They havent been able to deliver it to anybody during the quarter. This company is a good fran choice and good brand and have a good eye for fashion but havent shown it in the last six months. That call is coming up. Meantime the outcome of a key political meeting in brazil increasing the odds of that countrys president getting impeached. Seema has more. Continues to lose Political Support as corruption concerns grow. The Democratic Movement party claiming to break away from the government, a move that drama c dramatically increases the odds of the president being impeached. Rousseffs Main Coalition part and puts him iner in a very uncomfortable position. A growing number of experts, including Research Group eurasia believe shell be impeached by late april or early may. And the steps following an impeachment are still unclear. What is clear the prospect of a change in leadership is seen as a positive for financial markets. That is the catalyst behind the stock market which is up 18 this year making it the best performing global stock market in 2016. The currency and brazilian real has been rallying on hopes that a new government will bring in progrowth reforms, were talking about the worst recession in 25 years they are facing right now. It is interesting because if you just knew the worsening details of the political situation you would look at the Market Performance and say whats going on, is this all aepgs that she will be ousted . Even as this is dragged on their economy has gone from bad to much, much worse. Its impeachment is a contrarian indicator, you buy when theres blood in the street. When they are throwing out the leadership in the country theres blood in the streets. Assuming we have a commodity rally, youll see a stronger currency and stronger exports and see the country start to stabilize and theyve been through a lot. But valuation is really compelling. People have dump eed emerging markets whole sale. Look hard and look close at brazil among others. I guess a que is, do you think theres going to be continued rally in commodity snz what brings that about . Dont they have something to contend with like zika virus that could be a huge impact to the country . Kmotdty have been the worst perform sector for the last five years. You cant fall out of a basement window, everyone has dumped commodities and deleveraging and cut back on supply. Assuming the Global Economy is going to hold together a lot is currency related. We have a massive Brazilian Community in the Greater Boston area, admitting you have the problem is first sign of the recovery. Thats an unbelievable statement countries will never make. So disgusted with the corruption and leverage thrown away in the wind they are making the reforms necessary and the zika virus, i have a lot of faith in biotechnology and there are opportunities ahead in the emerging markets. Sounding more bullish on brazil than i heard anybody in a while. Appreciate you joining us. Bidding battle, heating up the skies, jetblue and alaska air making takeover offers for Virgin America. Which carrier could fly away with the prize. A new study finds results of cholesterol test done by theranos were lower than top rivals. Youre watching cnbc, first in business worldwide. He has a sharp wit. A winning smile. And no chance of getting an athletic scholarship. And that is why you invest. The best returns arent just measured in dollars. Td ameritrade. I built my business with passion. But i keep it growing by making every dollar count. Thats why i have the spark cash card from capital one. I earn unlimited 2 cash back on everything i buy for my studio. And that unlimited 2 cash back from spark means thousands of dollars each year going back into my business. Thats huge for my bottom line. Whats in your wallet . Alaska airlines and jetblue vying to take over Virgin America. For more on if this does signal the next wave of consolidation across the airline space, lets bring in cnbc contributor gordon bethune. Glad to be here. Its great to speak with you, it sounds like people are saying this could be the next wave the consolidation. Lets start with virgin, it seems like jetblue could be its likely home. Both of those carriers are well run and good products but last of the full service carriers, theres not a whole left out there to consolidate other than pt discount carriers, im not sure its going to touch off anything but its a good move. It seems like the problem with virgin, their growth is limited by the number of Slots Available to them. Is that true for a lot of low cost guys too . Would that be a reason to combine . The low cost guys kind of go where people dont go. So secondary cities where virgin is a mainstream full service carrier. It really doesnt have the heft to compete against the four big boys. Teaming up with a jetblue or an alaska, which would really add heft on the west coast makes a lot of sense. If this i guess it seems like something will happen but im wondering what position this leaves alaska and jetblue and virgin in anyway, where you have a big four. What does everybody else do . I think theres room out there for niche carriers, alaska has been around a long time, well managed but sticks to its knitting. Its when the big boys get greedy the little guys compete. Its a nice balance quite frankly. What does this do for the average american whos going out and buying their Airline Tickets . Weve seen a ton of consolidation and means less choice for the consumer. Do you have any concern that were at the point where there just arent enough choices when it comes to airlines . I dont think so. Really any secondary city like sarasota florida, to spokane, washington, there will be four or five carriers competing on price. Nobody can afords to get greedy without having stiff competition. I think four carriers with smaller ones is a lot of opportunity for competition. Gordon, if you were one of these potential buyers of Virgin America and had that company in hand, would you maintain the brand . What would you do i guess to try to preserve what loyalty customers have for . It has had a relatively unique place in the industry. I think that the name is going to go away and assimilate into alaska which has got a National Brand and jetblue has a quality brand as well. Both of those will be enhanced by what i consider a very good carrier, Virgin America, with just not enough airplanes and assets to be nationally competitive. Gordon, while we have you, hope to ask you for updates on the situation over at united. Anything you can tell us . No, i really cant. Wish i could but im just going to sit here and read the paper and see what happens. You think youre going to find out from the paper what your role may or may not be there . I think weve been fairly public but were restrictive on what we can say. Im going to honor the lawyers to tell me to keep my mouth shut. Thank you, good to see you good. Shakespeare asked whats in a name. A lot apparently when it comes to the value of a brandnew leading to a new push to allow companies to allow for intangible assets, those details are coming up. One of the biggest percentage decliners on wall street after it became the latest of congressional drug pricing outrage. Meg tirrell has the latest. Heres a look at shares of biotech medivation on the pricing of the pros state cancer drug. Holding hearings on the price of drugs is nothing new but the mechanism that these congressmen are asking to use is kind of a new thing. Essentially they are asking the nih to hold a public hearing on the price of this Prostate Cancer drug because it has been funded by federal funds. Seblly it was developed a lot in part at ucla with funds from nih and department of defense and the argument of the congressman and nonprofit which is behind this petition is essentially saying this needs to be available at a reasonable price to the public because it was funded with public money and nih has the ability to come in and try to examine the price of this drug and even potentially to take away the patent protection. It is partnering with the Japanese Company and the argument is its priced at 129,000 a year versus 30,000 in canadcanada. The u. S. Funded the development of the drug. Thats been the case with a lot of these. Every time they point out its so much cheaper overseas and theres a reason for that. It cost money. That is the argument of the biotech industry and been really interesting to follow this and see how people are responding to this. Will the nih step in. Its been asked to several times in the past and it hasnt done it although there is an example of an hiv drug where they held this forum and the price did come down. I was wondering, you say these hearings on drug pricing is nothing new and they go after these things because they seem expensive. How many other drugs or just is it very common for there to be some type of nih relationship or public funding. Often there is a lot of public funding behind a drug and you cant always tell basic research that nih funded went into the Actual Development of the drug. This group, i was talking with them today, they had a whole spreadsheet of drugs they were looking at and you can look at the patents to see that the government sort of involvement in developing the drug where this might be possible. This is the challenge when you have government involved in picking winners and losers and getting into the Venture Capital game. Then they start to make these decisions. You could take this out of health care and biotech and think about all of the industries that have some form of subsidies or some sort of government involvement and do we want government having hearings on anything they think is too expensive. This is the exact opposite of the free markets and certainly not a good thing in my opinion for the american people. Next will be the ferrari gsb, its clear its a discretionary purpose but people need these drugs. Its interesting with the government, it is the government asking the government to act and nih, its not clear they are going to step in and do anything. The group behind this says well keep asking in the next administration, this is going to be an issue as we keep going through this election and beyond. Drug pricing, absolutely feels more like the beginning than the end of that theme. Meg, thank you so much. Time for a cnbc news update. Heres whats happening at that hour. In an unexpected move, the Supreme Court ordering a fresh round of briefs examining an Obama Administration arrangement for providing contraception coverage to women employed by religiously affiliated organizations the move suggests they are looking to resolve the case without a 44 tie vote. We saw that in a case earlier today. Mark kirk of illinois in the midst of a tough reelection battle has been the first republican senator to meet with meric garland, one of three who believe garland should get a hearing in the senate. The Brussels Airport is hoping to reopen on a limited basis as soon as tomorrow. Airport staffers are testing out a make shift checkin area that could allow a limited restart of passenger flights. Officials adjusted the death toll from the attacks to 32 from 35 saying some victims had been counted twice. The italian navy rescued 690 migrants in six different operations in the channel. Footage released shows the migrants being helped by naval workers. Youre up to date. Thats the cnbc news update this hour. Have a good evening and ill see you tomorrow. Elizabeth holmes under fire again from an independent study finding the results of the cholesterol tests were lower than that of its rivals. That when we come back. Man 1 [ gasps ] man 1 he just got fired. Man 2 why . Man 1 network breach. Man 2 since when do they fire ceos for computer problems . Man 1 they got in through a vendor. Man 1 do you know how many vendors have access to our systems . Man 2 no. Man 1 hundreds, if you dont count the freelancers. Man 2 should i be worried . Man 1 you are the ceo. Its not just security. Its defense. Bae systems. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Heres a look how we finished in wal street. Dow gained 97 points and the nasdaq was up 1. 7 nearly 79 points and broadly s p 500 up 17 points. Nearly 1 . After we heard from janet yellen this afternoon that bolstered the market. Taking a look at Restoration Hardware. Initially moved lower significantly First Quarter guidance was a miss relative to expectations but shares have turned around and now up nearly 5 . We mentioned they are well off the 52week highs and Conference Call starts at 5 30 p. M. Blood testing startup theranos has been found to return blood work with abnormal numbers and the study compared the results of fingerprint test to two of the maker conventional Testing Services and it included 22 clinical tests on 60 different healthy adults and found they were not as reliable as the conventional labs. The company gave us this statement attributed to lab director daniel young, believes in open access and Greater Transparency in lab testing. Its difficult to review a study in days that took over nine months to report. We call on the authors of that study to grant us access to the entire set of raw data and detailed protocols missing from the article. With us now is one of the coauj offers, dr. Joel dudley, professor of Genomic Sciences at mount sinai joins us on set. Thank you for your time. Will you release will you disclose all of the information that led to these conclusions . Absolutely. Thats how good science is done. In coming weeks were going to release the full data set that was the basis of the study in addition the Software Code and statistical code that generated the figures and results of the study as well. Were you surprised at the results because it was a miss for theranos or was there anything about the results they were 9 lower. Was that more or less of an error than you thought you might find with theranos given by what we know about how the tests were conducted. The lack of any data on this issue, were excited about theranos and how we might use it in next generation medicine. We took it on ourselves to generate it. We didnt have strong preconceptions about how it would turn out. We wanted to value ate it. I understand they reached out to linkedin to get more information how the tests that they were doing on blood samples were actually done. The company said it only realized that after it became public and then went back and found the following linkedin message from him. And im sorry, this is the mount sinai message saying there was as much variation for almost all tests between lab corp and quest as there was between theranos and other two labs. I think the paper is generally favorable although there are a few issues but overall demonstrates good comparability. Yeah. You know, overall, they did look pretty good on many of the tests and i think a lot of people are focusing on the lipids and things like that. Thats a courtesy, in the spirit of collaboration, trying to engage them early in the research process. Thats a courtesy but the study developed and the published study has the results that are final. You mentioned theres been a lack of data and theres been so much money that has been put into theranos, so many high profile partners. Why is it there were werent stutddyes like the ones you had done, whether it was in coming up with these joint venture partners, why do you think that lack of data is there or not there . Really a question for thera nos, there are startups that will engage us to test new devices and new drugs, thats pretty common. Not sure why they didnt thats all available but its really surprising that our group was the first to publish it because were not Clinical Chemistry folks. These were largely agagenomices research center. A lot of people hear about this entire area of medicine because of the theranos controversy, how great of an opportunity is it to make them less costly or make them more precise. This is a fertile area for the whole industry . I think its a huge opportunity. The cost savings are important as we go into medicine and Accountable Care and things like that. Theres huge opportunities for wellness and we have this new Precision Medicine initiative that president obama announced and i think taking a fresh look at this lab testing and more data on populations will be key to really better understanding how we can use this type of information. Is there a lot of good information whether finger pricking works. They say it might be mixed with more things than blood taken from a vein. Remember diabetes testing and other tests available for a long time have done finger pricking, maybe not the exact same technology. There is literature so it exists. We need more research and studies on this particular type of technology. Going back to the 9 figure, which is sort of miss for results relative to its competitors on this question of cholesterol, what does that mean in practice . How big of a swing are we talking about in terms of dictating different outcomes for patients . Thats really going to depend on the clinician you talk to and again, im not a clinician. But others haveual weighed in t it could or could not. You have to take into account Patient Characteristics and clinical situation. Are you aware of more studies forthcoming . No, were not aware of any other studies forthcoming and we hope they are and willing to share all of our data and insights to make it happen. Thank you so much for joining us. Dr. Joel dudley from mount sinai. Tangible assets usually pretty easy to measure. What about the intangible ones . It could turn accounting on its head. How much Something Like a recognizable brand could bolster a companys books when we come back. Branding data earn intangible assets like these are taking over sheets. The journal found nonphysical assets make up 14 of private sector gdp as of 2014. How do you put a price on how much a brand is worth and is it worth doing so . Joining us now, who wrote the piece in the wall street journal an andrew leone at the university of miami. Thank you both for joining us. Its interesting because on the one hand it seems fair to say that a company like cocacola to pick an example has some equity in the brand value but theres good will for that too. The point is, how much more should we account for these socalled intangible assets . The problems that companies are facing now or investors, you have a 19th century Accounting System trying to deal with a 21st century economy. Theres 8 trillion worth of intangible assets that arent recorded anywhere on Balance Sheets. Theres a big gap in our understanding of what companies are doing. If we have 8 trillion out there, maybe the gdp is fine and we have no worries. Andrew, what do you think about the idea of putting sort of assigning an accounting value to intangible assets. This has been a long term problem going back to the 1930s and 40s or studies going back to those times. Weve never really had a great answer for assigning fair values to these assets, whether they are Human Capital or whether they are proprietary data sets. We dont have a great answer for how to assign values to them. Isnt this why Investment Bankers get paid very, very well as a former investment banker . The reality is that the market the market doesnt value most companies and most industries outside of maybe Financial Services based on their Balance Sheets anyway. They are looking at their income statements and coming up with some sort of mechanism for coming up with tha value. From my perspective, the value of these intangibles is whatever somebody else is willing to pay for them. Isnt that the real problem . Answer and the problem. It leads to the question of what the accounting statements are for and if you believe that a Balance Sheet is supposed to give you a snap shot of whats happening, then you need to get some value for the intangibles. Heres an example as well, from food back when it went through its bankruptcy process, one of things it actually put up as collateral for the 23 billion it was borrowing to stay afloat was a blue ford logo. What do you think about that . It makes absolute sense but thats another example if you look what happened to them when they acquired volume voe, they had to write off 2. 4 billion in good will because they overestimated the values of these intangibles. Its not that we dont want to put them on the Balance Sheet. Every time we try to do it, the values are so arbitrary because its so dependent on future events that are completely unforeseeable today. And let me clarify, ford did not go into bankruptcy. That was back in 2006 when it was trying to borrow. Did borrow the money to avoid problems at gm. Wouldnt be an investor just normalize the Balance Sheet and back out intangibles and assign whatever value they felt was appropriate, whether giving a hair cut based on the comparable values of other companies whether in a trading scenario, thats how market has been working for decades and decades. You hear the argument that the market cap effectively does put a value on the intangibles. If you look at facebook, book value and market cap 320 billion. Thats 280 billion unaccounted for if you use that theory. They are not unaccounted for because thats why the market value is what it is exactly. Is it intangibles that are respond for the market cap or Investor Sentiment related to other thats the debate we have here all the time. What would come out of such an effort to try to estimate these on an actual Balance Sheet . Would you be able to borrow money against it . Some other end that youre trying to get to . Ultimately the investors would have some idea what management was investing in and what the value of that was. Andrew, last point. I think the people that would benefit the most would be the valuation experts who would make a lot of money assigning values no these assets but i think we should leave it to investors and analysts to do. Guys, thank you both for joining us. Great piece. Up next, snapchat upping the stakes in the rivalry of facebook. Well tell you what they are coming up. Tune in tomorrow for a cnbc exclusive interview with chicago fed president charles evans. Dont miss it. Wouldnt a deal involve two parties discussing something . A little give . A little take . Because last time you checked, your rate was just, whatever they say it is. Why not give you some say in the matter . Or even better let your driving do the talking. Liberty mutual righttrack finally puts you in control of your rates. All you have to do is connect, drive and save. In fact, safe driving could save you up to 30 . With 5 off just for signing up. For righttrack. And the discount is good for the life of your policy. To get started, visit a local office or call Liberty Mutual today at take control of your rates. Visit a local office or call see Car Insurance in a whole new light. Liberty Mutual Insurance breaking news on donald trump. Donald trul p reacting and speaking to reporters on his personal airplane. He just landed in wisconsin responding to the fact that his Campaign Manager was charged this morning with simple battery in jupiter, florida. He was charged in a situation that occurred in march back on the 11th with a reporter, a female reporter and Police Charged him this morning. Heres what mr. Trump had to say in response. The News Conference was over. It was done and finished and she was running up and grabbing and asking questions and she wasnt supposed to be doing that. The. I think they have really hurt a very good person, and i know it would be very easy for me to discard people. I dont discard people. I stay with people. Thats why i stay with this country. Thats why i stay with a lot of people that are treated unfairly, and thats one of the reasons im the frontrunner by a lot. If you look alternate tape, he was very, very seriously maligned, and i think its very unfair. So there you have it, kelly. His comments, hes still talking to reporters on the airplane right now defending his Campaign Manager. Back to you. Thank you, sue. Whether its this or trump universiti university, he said its time and he doesnt want to settle. Hes saying go and fight this one out. This is not had a macro comment about mr. Lewandowski or about mr. Trump, but looking at that tape right there, if that is battery, then i get battered every time i try and board a plane at laguardia and half the time im at whole foods. If it were me in that scenario, i mean, look at that tape, i would be fighting that, too. Well, they thats my perfective. They apparently are and im im sure thats not the last weve heard out plaintiff frump. Snapchat adding a number of features to help it better compete with rival social leader facebook. Our Julia Boorstin has more on this now. Julia . Kelly, thats right. Snapchat just announcing chat 2. 0, an overhaul of its chatting services making it easier to make a video call or voice call as it helps their users communicate in every way possible without leaving its app. Users can tap to quickly initiate a video call, participate via video, voice or even text allowing users to easily move across the formats and keep a call going while sending photos, stickers or say addresses. The company is also introducing the ability to leave audio or video notes and now offering hundreds of different stickers. These features put snapchat into more competition with facebooks messenger as well as its what app though facebook has 800 million and whats a 9 million and snapchat 100 million. Neither of the facebook apps has the flexibility of snapchats new features. This new makes snapchat an Even Stronger contender and could step boost its valuation, currently 16 bill monas of a 175 Million Investment from fidelity just last month. Its a big move. It will totally change the way mike uses snapchat you know whats funny. Ilactually did download the snapchat oop two years ago. On a dare. As kind of a research thing. It was a reporter project, and i did see the notification and i said that cant even have anything to do with me and cant be a big deal. Ignored it. You still have the app. Theres hope yet. But you never know with the stickering future. Mike might be a convert. What do the stickers do . Like an updated emoji, a little thing that you can put into your messages to make then pretty. Emoji, i dont understand the texts people send me with emojis. Started with hieroglyphics, i dont know. Do we know how many are on snapchat . 100 million. Talk about the Different Things its used for, to communicate and send each other messages to disappear and now people will start to use it for phone calls and video calls and then next we could see people use it for commerce. I think snapchat is really going the way of some of the asian messaging Services Like kik used for everything. People live their lives within these services and thats what Facebook Messenger is starting to do by giving more prominence to brands and companies to allow them to use it as a Customer Service mechanism, so when you open up your phone, maybe you dont actually need to go to the phone icon, you can make a call through snap chat or messenger and youll start to use these services for a lot more. Exactly. Always like that proliferation phase of innovation and then a simplification phase. Its clear were all desperately looking for maybe one app instead of 14 to use every day. Thank you, julia. Our Julia Boorstin. Up next, a final check on Restoration Hardwares earnings before the Conference Call. Closing bell is back in two. Moving forward with uber tomorrow. Global expansion, big competition. Ubers top advisers looks at the tough road ahead. Skwak ally, 11 00 a. M. Eastern cnbc. Shares of Restoration Hardware have been whipping around after hours initially declining when the Company Released its earnings. It was a miss relative to the lower Earnings Guidance they had basically just given us a month or two back. That said the stock is well off its highs, the guidance was also weak. The shares went down 4 up to 4 to up about 1. 3 and the Conference Call starts in 30 minutes. The challenge that you have to look at here is the execution from the Management Team and some of the things that they are doing even on the revenue side. They are going to the new Membership Program where you have a 100 buyin to get discounts which not only competes with their interior designers who are huge customers for the products themselves, now saying were going to put you in with the regular customers and sends a different message about discounting. This is one that you just sit back on and let things play out for a while because they certainly seem to have lost their way here. Good to be a tugofwar for a while. Keep in mind, it was over 100 in november so this just fell out of bed so rapidly and steeply that you are going to find some people saying, look, if this is not a multiquarter, you know, basically pain trade you can probably look to buy right now. I dont think its deep but its definitely a brand. Falling knife, mike. Falling knife. It could very well be. Another earnings alert to get to here. This time on verint systems. Reporter reporting earnings well below the estimate of 1. 17 and research knew missing street forecasts. The stock is down 12 after hours. Kell . Thank you, seema. So a couple of names there as we start to look at tomorrows trading session, guys. But obviously it seems like the focus immediately will be on the payroll figure. The only thing that can happen there though is that it weakens because the job growth has been so strong you know it, seems to me that what yellen said was reduce the stakes a little bit on the job, in other words, we can deal with a strong jobs number because it doesnt have implications for an april move and maybe it does for june and the other focus is the financial stocks. The one thing to quibble with is they were down, down before yellen and after yellen. News but financials is what our guest told us. Depends if youre a short or longterm investor. I bought bank of america when it was 11 and change and if youre a longterm investor and once things shift and eventually they have to and were all in big trouble that thats a great opportunity for those kinds of quality names that are trading at a fraction of book value to be good longterm purchases. Tangible book, no less. That was exactly. Very well done, mike. Exactly. Just going to leave it right there. Guys, thank you so much. Carol roth and mike santolli. Does it for us on closing bell today. Fast money begins right now. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys times square, im melissa lee. Your traders on the desk are tim seymour, karen finerman, brian kell and pete najarian. Tonight on fast the u. S. Dollar is heading for its worst month in five years, and if you think todays mavis move in stocks is built off the dollars slide, well tell you why you could be dead wrong. Plus, its Berkshire Hathaway screaming buy with or without the oracle at the helm. Thats what one analyst says, and hes here to explain why berkshire could rally 15 higher from here. Later, apple is on a tear, officially exiting bear market territory and why apples rally could soon come to a screeching halt. A chart youve got to see. We start off with what was a very big day