Transcripts For CNBC Closing Bell 20160404

Customers, facebook is finding out what it means to be a hardware company. Yes. On Major League Baseballs opening day and today as well, rob manfred will join us at post nine to discuss ticket prices and a lot to talk about. It will be a very interesting conversation. We want to start with tesla. Shares are popping today on reportedly strong early demand nor the mass market model three car. Phil lebeau has been following the figures from a tweet storm of elon musk. What do we know . A big three or four days for tesla and elon has been tweeting and giving us numbers on the amount of reservations placed for model 3. At the end of saturday night, 276,000 reservations, likely much bigger than that now but we havent gotten an update from tesla. The base price for model 3, 35,000. That means if they only sold 276,000 at the base price and we know they go for much more, they bring in 9. 6 billion when those sales were completed. By the way, model three deliveries start in 2017, by then it will be interesting to see where the annual deliveries are from tesla. If you look where they are expected to be this year, this year expected to be between 80 and 90,000. Were expecting q1 delivery announcements any day now. Once again, this stock is tickling 250. It has been a huge three or four days for tesla. We dont have that much data points for previous releases by tesla, especially in the mass market scale. Because the deposits are refundable, im wondering what you think this will actually result in for real bottom line sales . We have about a year and a half before they are going to be produced . Its anybodys guess. Most people ive talked with, analysts who track the company closely. They believe at least two thirds of these reservations will be completed, that people will go through and order the car. Theres always the possibility that the first wave of cars that are delivered are a disappointment and people cancel reservation. Conversely, you could sigh the first ones come out this is fantastic, great car for 35,000 and that brings more reservations and more people going through and booking a firm order. Either way though, youre talking about the mother of all waiting lists when you think you talk about the delivery rate they already have right now and they have on the orders as of saturday night, 276,000 cars. Even if they kept half of those orders, that is still going to be a long time that people will be waiting for first car to come out. I think that people will wait. What are your options . If youre interested in this car, your options are if i want an ev, maybe i go and look at the chevy bolt. But the bolt and model 3 are completely different vehicles. They are both electric but the chevy bolt is aimed at more a middle Class Customer as opposed to the tesla model three, clearly aimed at the bmw 3 series and those in the luxury area. Its a good problem for the company to have, musk was tweeting also he needs to rethink production planning. They have at least a little ways to go but theres another huge story on your beat. Alaska air buying Virgin America for 57 in share. They are west coast operators but they have an antitrust review. How long until consumers see a change at the airport . I would imagine well probably see some type of change nine months to a year from now, when you see the antitrust reviews going forward. This is a big deal for alaska. It has been growing on west coast but by picking up Virgin America. It will be the fifth Largest Airline in the United States and the key here it has a much stronger west coast presence. Hub up and down the west coast. Then the question becomes one that ive heard all day long from period, what happens to Virgin America . Its this quirky funky brand and people love it. Alaska is being very coy and saying were analyzing the strengths of Virgin America. I dont think youll see this brand in a year or two. Pritchard branson stake holder in Virgin America and very clear today in saying he tried to fight making this deal go through but they had afy fiduciariry obligation almost all airlines with the exception of maybe hawaii in terms of the performance over the last six months to last year. Wouldnt you know just today the Customer Satisfaction survey came out, Virgin America was number one, alaska air was number five. Its still a Popular Airline with flyers but the fear is when they are consolidated, maybe they lose some of that edge they enjoyed as a customer friendly airline, right . You know what people enjoy about Virgin America, the abilities to order a meal to be delivered to your seat. Will you be able to do that with alaska . Im not sure they will keep type of perk. Those are the special things Virgin America did that made it so popular with its customers. The good old days of jetblue, early days and how they regressed to the mean as well eventually. Lets hope that doesnt happen to Virgin America. Thanks so much. Turning to the 2016 president ial race and impact on the marketses. A piece over the weekend saying john kasich would be the best pick for the markets and that his quote, policy prescriptions, and experience and temperament make him the gop best bet to ensure a nervous marketplace. Meanwhile, controversial frontrunner candidate donald trump saying its a bad time to inveflt in the stock market and warned of a economic and financial bubble and expanded on those comments today at a rally in wisconsin. Bubbles arent pretty. Weve had bubbles and when they burst its not a good thing. What i said is were going to go into a remassive recession but also say if im president thats not going to happen. Because im going to straighten things out before it happens. Its going to be a mess. Lets get reaction, john manly from wells fargo funds and Jonathan Corpina and Rick Santelli from chicago. What do you make of those comments from mr. Trump and whether or not john kasich is the type that wall street would welcome in the white house versus other candidates right now . Well, im not sure if wall street would welcome mr. Kasich but i can tell you this, the republicans put forth many mod pratt candidates the last two have been moderate, mccain and romney and win ratio is 02. They are part of the staen. Of the print media is part of the establishment that is the corps being rebelled against. Im sure hibd close doors, draghi and janet yellen would agree with everything xeptd for the big recession. If they didnt, they would be raising rates or certainly wouldnt be adding more liquidity to the drenched earth weve already had. With regard to the recession and what he said if he gets in office, its kind of hard to argue with. Fiscal side is whats needed, fiscal side is whats needed. Monetary side from the central bank has not only run its course but beyond the epilog. Its hard to argue with everything except the adjectives as to how deep and ugly it would be. If these are good times right now and everybody is disheartened, i dont think a recession would be any fun but i dont think it would be hujs. It would last long. John manly, to hear those comments though, eight years, nine years in a bull market at this point. We know the rally cant go on forever. But how dangerous do you think it is for a candidate to be threatening that something will happen, something that dangerous like a mass irves recession will happen unless he is president. How dangerous is that . We should take everything said on a campaign with a little grain of salt, meant to get elected. If trum many becomes president , there will not be a recession. There will not be a recession and i dont think theres going to be a recession, and why the ned is doing what they are doing. I was on a plane that was full and restaurant that was fun. Consumers are doing pretty well and im in texas. On, i know youre not speaking for all of wall street. Would any candidate be welcomed by the Financial Services industry when you consider that no president acts in a vacuum, they have to get policies through a have divided congress at the same time. Being that as it may, what about the comments that john kasich would be the president that wall street would welcome above all . I think mr. Kasich has done a very good job of flying below the radar when comparing him. Wall street wants a leader and wants prosperity and growth. Whoever is going to provide that best to us and best for the investors is what everybody wants. Clearly mr. Trump has a way of selling himself and what the future is going to look like in his empire. Weve seen how the market has reacted over time with a democratic president. Its going to be interest to see how how it all plays out. I enjoy were getting one day closer and closer to getting more transparency and little more clarity as to who the real frontrunners are and how its going to play out. Rick, youve been watching all dale as weve been getting reports from Steve Liesmans all kmerk conservative survey. The largest percentage, 32 say none. Do you take that to mean that wall street or the stock market wouldnt like any of the policies that are currently on the table or that they think that whatever will happen in the market is inestable regardless of whos in the white house . Its little bit of all of those. We keep hitting trump on this. Bernie sandser has a lot of momentum going, the same media you pointed out, many of these established newspapers really dont paint the picture of how much momentum he has. I cant imagine a Bernie Sanders an alleged independent social iflt is anything wall street is going to church praying for every week. Donald trump is a huge unknown. One thing is for sure, the current regime been in power for serve and a half years hasnt been friendly to wall street but despite that, wall street has been cleaning up. A very tough one to divide on every score. Sanders campaign has been bringing in still a remarkable amount of money and funds at this point. Before we go, john, any levels youre watching here . Were down 46 points, a lackluster start to this week. Last week when we were talking, the 2053 is now a support level. The first two trading sessions of the quarter, i would look at that on the down sid. On the upside, to the 2077 level. I think f there youll see resistance. Very good. Thank you. Enjoy your time in texas, john manly. Thanks. The land of the full restaurants. See you later. Weve got 47 minutes left on the trading session and dow is down 46 points, a rather quiet start to the week, earnings dont get under way until next week. Theres still a lot of news, facebook is down after a deutsch bank note. What does it mean for Facebook Stock and recourse left for customers . Wellville that story up next. John manfred will be with us to talk in a first on c nshs interview and get his take on the teams new targeting policies being used to gain more control over prices among many other issues facing mlb. music plays from one way or another im gonna find y im gonna Getcha Getcha Getcha Getcha one way or another im gonna win ya im gonna Getcha Getcha Getcha Getcha one way or another im gonna see ya inhales cigarette when facebook went public it dropped and we bought it and flipped it at 50. Yes, so we make a lot of mistakes and we will continue to make a lot of mistakes, those mistakes will be buying companies at a price and then when it goes higher we dont buy because its past our margin of safety. Mario, mario, you never make a mistake taking a profit but for the Record Facebook did go public may 18, 2012 at 28 a share and trading around 112. 32. You know, you never look back after you sell. That was part of kellys new series on cnbc pro called the spark value edition. Be sure to catch the full uncut interview, its a lively conversation about some investments that he wishes he had done a little more differently on cnbc. Com. Im sure there are people that wish they had made that same mistake that he made. Yes. Facebook is lower and deutsch bank predicting the Quarterly Earnings would come in light when it reports on april 27 rgt but the firm says it would still buy any weakness in Facebook Stock because of what it calls a multiyear revenue runway. Oculist rift is experiencing shipping delays. There could be issues with the components. Customers who preordered a 600 head set will have to keep on waiting a little bit more. Ceo tweeting, the first set are going out slow area so were giving free shipping. Promising to update customers by april 12th but the company didnt give any estimates for the length of the delay or number of shipments affected or how muching this going to cost the company. Whatever the cost, its the right thing to do as individuals who preordered are early adopters saying these are the customers leading vr into the future. Virt u reality wont be material to facebook this year even if the Company Sells the 600,000 plus units he estimates. But he says by 2020, oculus should generate about 10 of facebooks total revenue by the year 2020. Its not just oculus struggling, the veem head set canceled some orders due to credit card billing issues. Guys, back over to you. I have a quick question because weve seen how popular it has become to trade the components of all of the apple devices and im wondering what we know about the providers of the components in the oculus and whether that could become a Cottage Industry . Thats a good question. I havent dug into which companies are that are making the pieces yetd but the issue is comparing the Facebook Oculus with apple iphones is a matter of scale. Eventually maybe by the year 2020, we could see enough scale in those head sets but the numbers for now are going to be so relatively small compared to the number of iphones because as the oculus said this is about early adopters and maybe next year where well start to see these high end head sets get more mainstream. Keeping customers happy, well see how they do in that department. Julia borsten. The dow is off the lows of the day but its down about 56 points and s p is down about nine points or half of one . Standing right there, weighing in on the markets and how long he thinks we could be stuck in a low return environment. Sheila bair will give her take on neil cash carrys push to break up the biggest u. S. Banks. At ally bank, no branches equals great rates. Its a fact. Kind of like grandkids equals free tech support. Oh, look at you, so great to see you none of this works. Come on in. On their auto insurance. 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 whats going on here . Im val, the orange money retirement squirrel from voya. Were putting away acorns. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. Welcome back. Sun eddieson tumbling, reporting late friday they are planning to file for bankruptcy in the comings weeks. The journal said the Renewable Energy company is in talks with two creditor groups to Fund Operations during that process. They have amassed almost 12 billion in debt to help it acquire wind and Solar Developers around the world. Meantime smith and weson is Holding Lower with bb and t and cl king downgrading the firearm maker stock. Wowan cited slowing background check information and bbt noted valuation concerns. A new report from black report says weve been borrowing from the future and living in a low return world. Equities still look good to them. Black rocks chief investment strategist is here at post nine. Welcome. Thank you. When we have talked about low yields and low returns for the last several years the worry was investors would chase yield in dangerous pieces. Is this still the risk in 2016 . You see chasing yield, chasing return for the tlast six or six years. The problem they face today is there arent many returns to chase, youve even yields significantly around the world and negative Interest Rates now in large parts of the world. Equity valuations have risen to levels although yields are attractive compared to bonds, lower returns going forward. Thats one of your themes, another theme you see, weve talked a lot about thedy vergence in Monetary Policy by Central Banks around the world. Were removing some of that easy money while japan and europe have been adding to it but thats starting to come together though now, right . One of the things that changed importantly in the last few weeks has been the pace ofdy verge ens has slowed down. Youve still got the ecb and bank of japan with their foot to the floor. We think theres more to come there. The pace of policy makes much more aaggressive and priced into the market. I think the dollar now looks less of a headwind. But you still think the slower pace by the u. S. Central bank is good for stocks though . The lower pace from the u. S. Central bank and ongoing easing from other global banks puts stocks in a sweet spot. You have growth not to weak to frighten the market but not Strong Enough to worry the fed is back in play. We have the dollar stabilized and we have been able to shrug off the fears of recession in china, the jitters there at the beginning of the year. Were not really tracking the price of oil which is down 3 today. The market has been able to stand up to the Energy Complex a little bit. Is that the new normal . Will the narkts be able to keep doing that . I think youre seeing a much better environment for emerging markets going forward. They are faced two major headwinds and first has been fears about a tightening fed and actual tightening fed. That feels thats been removed for the time being. The strength of the dollar has been a big headwind for emerging markets, many em currencies look cheap. We thenk this creates a much more favorable environment for em and you have policy and emerging markets starting to be more favorable of the one of the big concerns this year about chinese devaluation, lower than its been for some time. You see more volatility. Investors keep thinking they figured things out. If the fed raises rates we rush to the financials. When thats not happening they rush to the utilities and always looking for yield so sthe go to the dividend stocks. You see this hurky jerky environment continuing . It surprised many investors, the vix is down in low teens. Levels historically which have not been sustained and we look forward. Theres a lot of potential kad lifts that could see volatility rise and seeing changes in Interest Rate policy and talked about the risk in china. People will look at the inflation figures out of the u. S. As a third risk as well. I think youll see more volatility for sure. Things to think about from black rock. Good to see you. Appreciate it. Time for a news update with sue herrera. Heres whats happening, Governor Cuomo and Hillary Clinton celebrating the new 15 an hour minimum wage bill for new york city that will occur by 2018. Both gave fiery speeches for wanting to keep wages down. First syrian sent from turkey as part of the deal with European Union arriving in germany. The 16 refugees landed in hanover before being taken to a Reception Center rmt another 16 landed later in the day. The Supreme Court ruling against a challenge to a decades long practice used in drawing political maps saying states may continue to divide legislative seats according to total population. It is a blow to conservative activists. Injectable drug appears to help reduce cholesterol for people unable to tolerate statins. There can be severe muscle pain and crumping but the new injections are expensive, costing more than 10,000 a year. Ill see you in an hour. Thanks very much. Well see you then. We have 30 minutes left, going into the most important half hour of the trading day. We condensed it down. Dow down 73 points and leading trader joins us to tell us what hes watching into the clois. Steve liesman has results of a nationwide survey on trade and immigration and how they can sway the election for leading candidates done trump and Hillary Clinton. That story just ahead. Trading in a fairly narrow range, just about 96 points with health care leading the way. Were still seeing markets in the red with a half hour before the end of the trading day. Apple though is higher, Credit Suisse adding the tech giant to the focus list saying it thinks the market is underestimating the Growth Potential and annuity type business. They raised apples price target to 150 a share from 140 for context its currently trading at 111. Bill over to you. Thank you. We got into the last 30 minutes of the trading day with another candidate for the next most interesting man in the world. I know youve heard that before. Mine would come out a little different color though, thats my problem. Im getting it on the chin. Im seeing the white on the chin. Im dyeing it gray because no one believes this is my real hair color. What youre about to say here, we had the fellow from black rock on and they are watching Monetary Policy around the world. Our fed is still very much more concerned with foreign economies than they are our own economy . Whenever i brought that up, people would say youre crazy. They are looking at china and Global Growth. This is the fed global fed these days. We have a bunch of Central Banks looking at each other waiting for someone to lead and they realize no one can lead if theres a lack of growth. We do have a lack of growth of the for me the proxy, were looking at china and janet yellen is looking at china. The proxy for Global Growth is crude. Crude had that huge runup. Backtracking, if it stays in the middle 30s, the market can stay here. If it cracks below 30, were back to the recent lows. Will we ee the correlation break between equities and crude oil . Were starting to see that now . Ultimately you see these cracks and points of weakness, occasionally where the correlation is off and we all know correlation does not mean causation but the truth is theyve been on for more times than theyve been off and i do think that that correlation persists. But you have to remember it was a huge runup in oil and stocks and i think both are probably due for a break. We saw it happening in crude and we have earnings coming out. Whats in, whats out of the marketplace, you have to give it a couple of weeks but watch oil. Thats the key to the marketplace. Well do that. Thanks. Thank you, bill. Gop president ial frontrunner donald trump has been attacking u. S. Trade agreements for months and it looks like he converted some people. Steve liesman has the exclusive results of the cnbc all America Economic survey and joins us from headquarters with those results. Yes, free trade support in the United States is eroding. But not for immigration. Well show you the results. 802 americans polled around the country. All income groups and heres the results from the yellow the last time it was asked a year ago, in the nbc wall street journal poll, weve asked, you can see support has declined. Those who say trade helps the u. S. Is now down around 25 . Those who say it hurts coming up almost towards a majority. Not quite but those difference still there around 22, 23 . Looking by country, interesting results here, germany still seen as an Economic Opportunity and japan as well and mexico less so but more americans think mexico recommendation an Economic Opportunity rather than a threat. But all of that talk about china is really having an impact here. 49 of americans say china represents a economic threat not an opportunity. On immigration, different numbers. This question last asked in a pugh poll and we recycled it here, unchanged support for immigration, does immigration strengthen the country or does it hurt the country . Do immigrants take jobs . You can see here thats fallen a little bit. Is that support for immigration remains pretty strong. Maybe bill because a country of immigrants hasnt forgotten where its come from. For sure. The opinion is one thing. Do the numbers support the opinion that china is good or bad for our economy and when it comes to trade . You know, when you take a 3 sneaker and sell it for 100, i think it ends up being good. The trouble is you have very concentrated losses from trade. You look at for example, the textile industry in north carolina, hundreds and thousands of jobs wiped out. What does that mean . Were able to import very cheap textiles and clothing and that money you would have spent on the clothing goes someplace else. Trade is a complicated issue. The poll asks a binary question, trade good, trade bad. You can see the support for trade bill is eroding because the rhetoric and also the stories out there. Carriers and these banner stories out there about people losing their jobs and no banner stories about whats good about trade. Yeah, got it. Steve good stuff as always. Steve liesman. We have a market flash on World Wrestling entertainment. This is a perfect story for narry thompson. This is a good news, bad news situation. Shares are lower. The good news first is that the company had a Record Number of sub xrishs, 1. 8 million. Thats the biggest annual show. The bad news is they are expecting a large number of those subscribers to drop off during the second quarter. Thats pressuring the stock, down 5 on the news. Big hedge fund battleground stock. Just about 20 minutes to go. The dow and s p are still in negative territory though off the lows from rlier today. Coming up in an exclusive interview with sheila bair, well get her take on her new role at the finance firm. And shes a movie critic too. First, baseball, National Pasttime gets under way in full, well get the state of the 9 plus billion business that is baseball. Rob man fred will join us. The 2016 Major League Baseball season is officially under way, the bulk of the opening day games are today. 22 teams scheduled to play although a couple of games have been pushed back to tomorrow due to rain. In the new york area a little snow. A little snow took out the yankees game until tomorrow. Joining us for more on the 2016 Major League Baseball season we welcome commissioner rob manfred who will ring the closing bell here later. Championing new era of partnership as part of the caps on promotion encouraging kids to wear a cap for opening day. Since i moved to new york, got to get a braves cap, atlanta transplant over here as well. Fans will wear a cap to a baseball game, arent they . Its not at games, we hope in the workplace and gave around 27,000 hats today in new york. People were just working the normal day, wearing their hats and its a great thing for the game. Is it about building loyalty . Whats behind it . Promoting the game and for new era its about championing the partnership with Major League Baseball. Its been a long and Productive Partnership and new era is a great brand. Its opening day and we read the stories about whats good about baseball now and the problems are teams have never been more valuable. Attendance has never been greater and ticket prices are the lowest of any major sport in the United States. Youve had the longest peace time period with the labor unions and all of that. What keeps you up nights . Is this as good as it gets for Major League Baseball . I think were a Growth Business and youll see the business continue to improve. I think the challenge for us is making sure that the game gets passed onto the next generation and that its as popular with young people as it is with your age and my age. One item on your to do list, speed it up, thats been something your team has been working on for some time. What changes will we see this season . Two areas of focus, were going to shorten the time between innings. We put a clock on that time period last year for first time and were shortening the breaks to make things move alone. Were also focusing on the length of mound visits, those happy moments when the managers go out to impart wisdom. Well try to move those along a little bit. Four plus hours to how long . Whats the target time . Were down about six minutes last year from 3 02 to 2 56. If we could get another six minutes, we would be really pleased. Shortening time between pitches would be helpful too. I think in the long haul it will become more of a focus. The generational thing, young people today and young kids, theres a tremendous amount of demand for their time here and im talking about sports. We could Talk Technology and those things but a lot of them are playing soccer now and playing lacrosse. They are not playing baseball. Why is that . I think its what you pointed to at the beginning of your question, kids have more options now. It used to be in the spring you played baseball because thats what everyone did. Were trying to be way more competitive in the market for young people to try to encourage young people to play baseball because its the single biggest just a recent story in the yournl that our participation went up 4 . We were one of the few sports who saw growth. Were seeing our efforts bear fruit. A lot has been on the digital offerings and the mlb app and content you have. For the established fan base, people dont like when things change and they cant print tickets out at home. How do you balance that . Thats a step backward, isnt in. It is the trickiest issue in baseball. On the one hand we think the use of technology is really important in terms of attracting young people to the game. 7 million fans a day open the app. Its a very popular app. On the other hand, you do have older fans bounds with history and tradition. What we found is if you can find a change that fans want, instant replay is a great example that old and young will embrace technology. These ipad pros will be put in the dugouts now and deal you signed with apple. I can hear baseball purists right away, the decisions that will be made now will be based on this technology that they can figure out the best batter for the best pitcher and so forth. Based on baseball instinct. Whats the goal with that . Improve the game somehow . I think it was a recognition of reality. We were sitting around last year and watched managers and coaches go into the gouts with 3inch notebooks full of information. They were doing that because we had a rule that prohibited Electronic Devices in the dugout. Given that they were using this information all the time anyways, it seemed the visual of having an ipad and making it constant with the way we live is a change worth making. We do think it will be faster. You would think so. You would. Well let you get up to the balcony to ring the closing bell. Glad to be here, nice to meet you both. Rob manfred joining us. Thanks for the hat too by the way. Ten minutes left. Its later than its ever been and the dow is down 73 points right now. We just have about ten minutes to go before the close of trading and well have td ameritrades jj kin na han telling us what clients are buying in march. And id like to. Cut. So im gonna take this opportunity to direct. Thank you, well call you. Evening, film noir, smoke, atmosphere. Bob. Youre a young farmhand and e trade is your cow. Milk it. E trade is all about seizing opportunity. 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. Megan is home doing yoga. Last saturday, she was shopping here. [ indistinct shouting ] bulk from boxed didnt only save megan 33, bulk from boxed saved megans saturday. [ pop, screech, doorbell rings ] boxed bulksize shopping delivered easy with no membership fees. Download the app and get 15 off your first order with code bulk. Eight minutes left and dow down about 60 points. Art cashin was telling us it was a any glijible amount to sell on close orders here. Joining us, our monthly visit from jj kinnahan, where you tell us what your clients were doing in the last month or so. Buying out of Favor Companies here, werent they . They were not sellings of equities overall in march which is kind of interesting as the market rally you dont often see that. So they were buying some out of favored companies and Companies Like chesapeake, to get a little bit of exposure to some energy and a low priced way to do so. And to take advantage of some of that. So that makes some sense. On the selling side, we saw them selling the retailers, when i was here a couple of months ago, we talked about how they were buying those companies and now theyve turned to the sell side. On some of the brick and Mortar Companies particularly like target and jp penny and evenal bab ba. Two interesting things about the report overall, number one, sellers of equities into a rally and volatility decreased significantly which also decreases their exposure overall. Whats the conviction behind names like a valeant or chesapeake which seem to be binary investing, you believe youre getting an option on something thats about to soar . I think valeant, lets face it, Retail Investors have been paid over the last couple of years when a company gets overdone and big reaction to the down side, they jump in and that was one of the things. But on the other ends of the scale, a stock like disney, widely held by our clients and people trust it and i think its one of those things where when they see companies they know, disney and facebook i would put in the same camp that are widely held, that although facebook rallied, disney got beaten up, they come in to buy companies they trust and with whats going on in a first couple of months of this year, you see it on a day like today, no one knows what to do. In those situations youll see clients go to names they trust that have gotten beaten up and names like ge, witdly held to sell it and take profits. Those companies that had a pretty good ride lately. Great to be on. Appreciate it very much. Well take a break. Important than your health. 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So im going to take this opportunity to go off script. So if i wanna go to jersey and check out shotsy tuccerellis portfolio, whats it to you . Or im a scottish mason whose assets are made of stone like me heart. Papa youre no son of mine or perhaps its time to seize the day. Dont just see opportunity, seize it applause okay, two and a half minutes left. Were into the countdown bob pisani joining me. The dow down 64 points. Lackluster trading, volume moderate for this year, light side. Slow drift south. Were coming off the lows about an hour ago, down 63 points. Oil, that continues lower here. Youre still got these war of words within opec and ill cut production if you cut production and im not going to cut production because youre not cutting production. Oil stable at 40 is dependent upon the idea that somehow the production cuts or freeze, not cuts, will come into effect. And how about Virgin America today, that by far was the biggest gainer with the acquisition by alaska air, much to the shagrin of richard branson, worth 47 a share and stock under 55. 16. I saw put up valeant and saw a headline as i was coming up the stairs. Down a little bit. I saw a headline that creditors said to relift proposal some vendors said to seek higher fees and rates. I just saw that coming up the stairs. Valeant moving to the down side sitting at the lows. It was interesting that eric rosengrin, fmoc voter on the boston fed came out at 10 15 saying the fed is likely to raise rates before the market expects. Hes on the hawkish side that wouldnt be hard to do because nobody thinks they are doing it soon. 15 minutes later we saw it move to the downside. Not sure if that was him or not. But its amazing how little that would have been a big head line two weeks ago and didnt generate much at all. We have had a tough day, not only was oil down affecting big commodity names all down, brazilian stocks had a tough day, a lot down 5 or 6 . Commodity laden. Thank you, bob. See you later. Were going down 59 points on the dow industrial average, baseball commissioner rob manfred ringing the bell. Stay tuned for the second hour of closing bell. Welcome to closing bell. Bill griffeth will join me in just a moment. Heres how were fin iishing th day on wall street. The dow is shrugging off what was a six session streak of gains. Nasdaq, shrugging off a five hi day winning streak, a third of 1 . Nasdaq by the most down by about one half of one percent. Certainly well be watching what is moving today. Health care was the best performing sector and industrials and materials and Consumer Discretionary stocked favored the worst. We have senior markets commentator and pro columnist mike santoli and fast money trader guy adami. Welcome. Lets start with you, mike. We have seen a pretty narrow range. I believe it was about 96 points was the range for the dow. But we have seen the range throughout the year continually contracting for what the markets are trading within. Is this because the markets are reaching consensus on certain issues or is it Something Else . Weve had these phases where the fever breaks for a while. We had an intensity of panic seven weeks ago, gradually alleviated and everybody looks at the chart, were up 14 in no time. Pretty good time maybe to back off but its a very low energy selling environment. Youre not seeing people rush to the exits. People were pretty defensively positioned coming into this move. One thing to note, some of the downgrades people saying ring the register on stocks, ge, facebook and cautionary words on the tech side. That shows you that people feel they have some gains and want to take some off the table aopposed to downgrades being ignored. Iron man. Whats up, bill . Tell me you owned Virgin America. Im not going to lie to you. Ill be like some of these other people and say i had a feeling no, the answer is of course not. I have never flown Virgin America. Its actually the word itself doesnt lend itself to anything i do. Well see if that name lasts after alaska air takes over. The bias as mike is suggested, still a reluctance to sell, what do you make whats going on . Mike and i were on together on friday and one of the things i mentioned, friday was a pretty benign day but the three concerns, you had transports, if you remember, bottomed out on january 20th and sort of led the dow back higher. That is seemingly rolling over. Thats something that i want to continue to watch. We also have been talking about the ovx and that was really important. Talked about it at 44, said it looks like that migtd want to turn to the upside. Thats trading 50 for First Time Since early march. That should be a prelude to the oil market continuing its descent which i believe. You have a lot of cross currents and things you want to be bullish about but then you have things that led us out or seemingly turning. The last piece and you know this because you talk about it almost every day, when the vix gets down to the 13 handle, it typically doesnt like staying there. A bounce in the vix typically leads to a soft in the broader market. It was up about 8 today and still down 22 for the year and were starting to hear a little drip of maybe some ipo activity, starting the road show as soon as this week. Is there enough demand in the equity market to buy brandnew stock right now . If waters remain calm the vix seems to look low given it was at 28, seven weeks ago and now at 14. On the other hand it stayed between 12 and 15 last year for months. It doesnt necessarily have to hit some kind of spike bottom and go up. If the market stays relatively placid, there has to be first of all youll have the better deals come first. You would probably have a modest opening in the ipo window. I dont think were looking at the binge though. Guy, would you buy shares if they can pull off an ipo . That whole game sort of scares me. Its one i leave to People Better verseded in it than me but the short answer is no. Its hard for me to value a lot of these companies when they come out. I rather let them trade for a couple of months. Thats the way i look at the world. Doesnt mean its not a great company, those are the things i typically dont skate in. Another trend, oil is losing its luster as the lead dog. The correlation with equities here. A definite it was down a lot today. Oil stocks were not. Today the correlation was 100 . They both were down. Stocks and oil down. As you point out, the magnitude has not been step for step. Thats definitely important. I dont know if theres a price of crude oil where it starts to panic equities if we get down towards the low 30s, maybe thats going to be the case or at one of these foints as we reach for with these big macro stories where greece headlines stop mart mattering and i dont know if were there for oil, you have to watch the credit markets to see if thats the case. Kelly evans sat down with Value Investor mario gab elli, the spark value edition. It was a conversation about investing from best bets to biggest mistakes and heres what he to say in in investing in valeant and sequoia, how did they end up with 30 of their portfolio in valeant and why the valeant community in a stock like valeant pharmaceuticals. They clearly like the notion of compounding returns without paying tax. You know, i could never understand why people went to jones borrow and drank koolaid because somebody suggested they drink the koolaid. You know did you look at valeant . We have a team that does biotech. We like that area. We like the whole notion of health and wellness and whole notion that we as a country unfortunately getting older except for you, basically we need to spend less because its too big a piece of our gdp and find ways to do it. Can we do it with generics . Yes. This motion of pay to delay, the government has to be the traffic cop in the whole free market system. You need a traffic cop occasionally. As a result of that, we want to know these companies and we own several of them. But not valeant . I think we own 1,000 shares of valeant. It was a thats 30,000. You like to see the pain that people are suffering or enjoying. Be sure to catch kellys full interview with Mario Gabelli on cnbc. Com pro. When valeant is down another 7 on these bloomberg headlines that lenders arent going to give into easier terms here. Interesting they are playing hard ball. It would be technical default if the lenders said you have delayed your 10 k and we have to give some kind of waiver on that. A lot of people figured its not in the lenders interest to necessarily put the company into technical default but maybe thats the way they preserve leverage. Valeant right back down near its lows, that little pop it got not to long ago not holding up at all. They either love them or hate them with a vengeance, right . 100 . I think they are firmly in the cross hairs of every politician left out there. They are an easy target. Although you bounced from 240, trading 270 now, i think the next big move is going to be again rach et to the downside. Doesnt mean they are not Great Companies and doesnt mean the valuations arent fair and a lot of these companies they are. When youre in the crosshairs of politicians who can say just about anything, these stocks are going to be vulnerable to any headlines that come out. We have a news alert on trump hotels right now. Sue herrera. Has details. Right now kreb son security says Banking Industry sources are telling them that the Trump Hotel Collection may be dealing with another breach of its credit card systems. If confirmed, kreb said this would be the second such breach that the Trump Properties in less than a year. Some of the hotels that are in the crosshairs, according to the sources would include trump hotel, Trump International Hotel New York and why kiki and tower in toronto. The Trump Organization says that they are going to investigate. Were in the midst of a thorough investigation on this matter and committed to saveguarding all guests personal information and will continue to do so vigilantly. Thank you very much. Thats a black swan thats becoming more prevalent all the time. Without a doubt. We were talking about a company valeant in the cross hairs of politicians and now a politician and businessman seemingly in the cross hairs of people who want to make trouble for him. Aim lot of businesses have been in the cross hairs that is true but this is not a vast company it seems you would think on the surface its a targeted attack. Why hotels in particular have been so popular for credit card breaches, hilton, marriott, sheraton. Very true. Its interest being, one of the bigger pools outside of airlines and retailers that you have a ton of high end credit card accounts. Does that make you want to buy a company like that . Thats why i stay home, bill. Thats why i dont travel anymore. Not looking to get hacked. I will tell you something, these stocks the Cyber Security names took a bath four or five months ago. A lot of them are starting to come back a little bit. Although pal loal tos ee val yags is ridiculous, that is the best in class and these are problems that are not going away. Thats for sure. Unfortunately. Guy, thank you. Wait, dont move. I know cal northridge isnt playing tonight but kayla, good luck, im rooting for you. Im rooting for me too if you dont mind my saying so. Im rooting for you here. Go tar heels. Anyone for villanova . Jim cramer. Well catch you on fast money and theyll be talking to that man right there Mohamed Elerian will tell the traders where he sees the market heading now. Coming up at the top of the next hour. Weve shown our hands on the game tonight. Tipoff, 9 19 p. M. , staying up late tonight. Oil is modestly higher, crude is down 6 over the past week. Its closer to 10 now with todays move and our next guest says low oil prices could be disastrous for saudi arabia and rest of the world. Minneapolis fed president wants the government to consider breaking up the big banks. Coming up well hear from former fdic chair sheila bair whether she agrees or not. Youre watching cnbc, first in business worldwide. Were always looking for ways to speed up your Car Insurance search. Heres the latest. Problem is, we havent figured out how to reverse it. For now, just log on to compare. Com. Plug in some simple info and get up to 50 free quotes. Choose the lowest and hit purchase. Now. If youll excuse me, im late for an important function. Compare. Com. Saving humanity from high insurance rates. Breaking news on tesla motor. Tesla in First Quarter delivering 14,820 vehicles, most analysts were expecting tesla to deliver 16,500 vehicles. Of the 14,820, the vast majority were model s vehicles and 12,420. The other 2400 were model x vehicles. Despite coming in lighter than expected in q1, tesla is reaffirming it expects to deliver between 80,000 and 90,000 n vehicles in 2016. Tesla explains that the q 1 delivery rate being shy of expectations is primarily due to part shortages related to the model x. Were not going to get all of them. Among the reasons they stayed here insufficient supplier capability and tesla not having a broad enough internal capability to manufacturer the parts inhouse and this is my faf rut one, teslas hub russ in adding far more technology to the model x. Im not sure love that. When you consider that they have 276,000 orders for the model 3. This is like getting season tickets to red skins games years ago, ordering these cars for your grand kids because the wait list will be unbelievable to get them out the door. Has any company ever used the word hub russ. If you were to go on to order a model 3, you likely would not be getting in until late 2018 or 2019. Youre putting one in for way in the future. Despite the company reaffirm being guidance, were seeing the stock trade off about 2 in after hours. The stock is up 100 bucks since february 11 rgt, getting back about five of those 100. But this is the panel we tested. Everything in the future looks beautiful. Were struggling to deliver in this quarter. Whats funny has anybody used it in what is a humble brag, we made it too good, we couldnt deliver all of them. Thank you. Meanwhile, take a look at shares of baker hughes and halliburton, trading lower. After failing to notify the government of a more than 2. 5 billion stake in the companies. Value act is that activist fund who purchased the shares after halliburton reached the deal to buy baker hughes in 2014, which is still under antitrust investigation. Kelly evans asked about the deal when she spoke to him last month. Listen. We bought both because we like the deal. We just felt the baker was too far from Intrinsic Value and the spread wasnt quite big enough. We would buy both. As the spread widened out weve gone completely into baker hughes. Same sort of size position, 10 portfolio position, just like rolls royce, and then rolls and baker are the biggest three investments we have. And the reason is if the deal does happen were going to do really well because well get a big 25 spread. And if the deal doesnt happy think people may have lost track what happens to bakers Balance Sheet when the cash comes in from the breakup fee. Value act has since said it disagrees with the seeking of Civil Penalties related to the merger and will contest actions and defend its position. A new report from mallden economics is flagging warning signs saying at 30 oil, saudi arabia could have three to five years of reserves and borrowing available. John, great to have you. Good to be here, guys. Always fun to be with you, bill. Nice to see you. Particularly interested in this three to five year call, especially as were getting comments that they are hoping by 2018 to float 5 of saudi aramco. Do they have enough time . What we said in the letter was that doing nothing means they run out of money in 2020, out of 700 billion if they continue what they are doing right now . The choices they had and ticker and clue was when they came in and said were going to take saudi aramco public or piece of it. Now theyve come back, not only are we going to take it public, it will be a 2 trillion company. Were cutting back on government spending, were cutting back from whatever weve been giving to the royals. They are having to slash left and right and acting exactly like a company would. The problem is they are not a company. You dont assassinate a president when i makes cutbacks and lays off 10 of the people. But the change in the climate for a country like saudi arabia has been breath taking in the last three years, we, changed the equation for them completely. It changes everything. What they do, they are being forced to make cuts but the problem was the deal that allowed the house of saud to be the the shooeiks to run the country, were going to pay you and everybody gets a piece and well take care of everybody. Now they cant take care of everybody. Look at it as if the United States next time we go into recession. I had a graph in my last letter, we immediately have a 1. 3, 1. 45 trillion deficit and stays over a trillion for the rest of the decade with if that happens, well have to make cuts. Weve made political deals and people are going to be angry. Well, put that on steroids and it makes a tense situation when 90 works for the government and they are not very productive. I was going to say, to put a finer point on it, the regime threatened with oil how badly . They know if they dont fix things theyll be threatened even worse. I mean, its they see the end of the road. And they are actually taking the proper steps and youre seeing i think this is a reason youre seeing the Younger Generation step in because they are hoping the Younger Generation can talk to the Younger Generation of the people they made deals with 50 years ago and say, listen, everything has changed. You know this, lets Work Together on this. To come up with a new deal. A lot of people in the industry say there are always booms and busts, we go through this every five or ten years and most recently 2009. Im curious what you think the most material difference is in the 15, 2016 cycle from cycles of the past. You now have a new wild card player called the United States i can tell you, i live in dallas, there are guys running around with deal sheeting in terms saying we can make money at 40 oil. The cost of production dropped so much. The new technology has moved in. They are punching holes in the ground. Oil gets up to 60, theyll be punching it up and so now, were seeing production fall off now. But it when it goes back to 60, theyll be back out and raising money and i think that 60 probably the doesnt give saudi arabia back to where they need to be to be able to go back to the good old days. Do i think we can get back to 60 . Yeah, we may see 20 something before then. Iran plays a huge part in this because they wants to get back online and get back to the production that they enjoyed before all of the sanctions were imposed on them. You hit it in one. They are the big swing player because they are doing a little over half a billion half a Million Barrels per day and they say were willing to stop our production and cut our production. But at three and a half Million Barrels, which is where we were, when we have to get back to where we were before we start cutting, putting another 3 Million Barrels a day into this thing you get your 20 oil. Absolutely. Im afraid to roll the dice on that one. Perfect storm for saudi arabia at this point. Thank you. Thank you for joining us. Nice to have met you young lady. Thanks for coming by. They are waiting for you across the street. Elon musk is stealing headlines that the huge preorder for the model 3 weve been talking about and his rocket rival, jeff besos appears to have the upper hand in Space Tourism after another successful rocket launch. Latest on space wars coming up nch the Panama Papers exposing the secret Bank Accounts of current and former world leaders, including accounts possibly linked to russian president Vladimir Putin. Details on a mass irves amount of money being hidden from taxes when we come back. A massive data leak is exposing the Bank Accounts of some of the worlds most powerful leaders. Hi, kayla. More than 11 million documents have been leaked from the panama based law firm including documents on as many as 12 current or former world leaders. According to the International Consortium of investigative journalists, it includes information on offshore companies linked to the family of chinas top leader xi jinping and ukrainian president poroshenko whose law firm has said allegations of tax evasion against him are groundless and the late father of david cameron. The children of pakistan Prime Minister sharif and president of argentina, macri whose spokeman said he never personally owned shares in question. Not mention by name, Vladimir Putin although the documents include details about members of his inner circle. Lots of big Unanswered Questions in all of this, including who leaked all of this information and why they did it. Back to you. This is breath taking stuff and its just getting started. Thanks very much. Lets talk more about Vladimir Putin, one of the biggest names associated with the Panama Papers leak even though hes not mentioned specifically. Dean that joins us for what it means for putins future . The russian president not named directly but several people in his circle are including billion air and also known as putins personal banker. The findings state as much as 2 billion has been secretly shuffled through banks and Shadow Companies linked to putins friends. He has long been rumored to be worth billions himself. These revelations give a glimpse as to how and via whom he migtd be keeping his money. His press secretary preem tifly accused the west and ngos of trying to smear his bosss name. Journalists reached out for comments and they were prepared to be on the defensive. And sources say he put some of the people in the structure. They become head of Government Agencies and they have a lot of power as it is but so much of it is allegedly also about Holding Money for the boss. Now that we actually have much more details about this, the allegations that the russian government is saying this is all parts of putin phobia, a new one. I dont think ive heard that one before. But you pronounced it perfectly as we expect a native speaker to do. It appears though that theyve structured this anticipating that some day it might be revealed, yes . A lot of people questioned whether or not this is going to affect putins future or be a game changer. The short answer is no, not really because i had a source just message me minutes ago and said this is not really news in russia. People are not phased by this. They see nothing wrong with their president sort of giving money to his friends and having his friends hold money and having assets all around the world and shadow Companies Like panama. Theres no surprise here is the take i got from russian sources and experts and People Living there. It seems putin decides what is legal and illegal. So does the revelation in these papers, is it just a diplomatic embarrassment or is there some sort of law that could be broeched by that . I think youre right about the diplomatic embarrassment. Its not just putins friends who have Assets Overseas and Shell Companies in think of oligarchs that arent tied to putin. They have properties in miami, london and austria and spain. So many people who make a lot of money in russia are trying to protect it, not just to diversify thir portfolios but make sure one day the government isnt going to say were going to seize your properties and seize your assets. Very good. How do you pronounce it. Putiniphobia, the fear of the russian president , Vladimir Putin. You learn something new every day. Yes, you do. Time for a news update. Heres whats happening this hour. A federal judge in new orleans grantded final approval to a 20 billion settlement resolving years of litigation over the 2010 bp oil spill in the gulf of mexico. The money is to be paid over a 16year period. After nine months of emergency drought regulations californians fell just short of governor browns call for a 25 statewide reduction. The reason . Residents cut water use only 12 in february. The worst showing since those rules took effect in june. Bern mee sanders says Hillary Clinton is nervous and under a lot of pressure over the upcoming wisconsin and new york primaries and made the comments at the union hall in james field, wisconsin. It was probably own a matter of time before somebody tried power tools. Do not try this at home. A group of film makers are hanging a powered chain saw under a drone and named it, what else, a killer drone. Its bark is bigger than its bite. Only managed to down a few cycles and tree branches. Luckily it didnt drop a chain shaw. What could go wrong . Absolutely nothing. Dont try it at home. Back to you guys. I wasnt going to but now i really wont. Thank you, sue. Up next, an exclusive interview with fdic chair sheila bair, whether she thinks neil cashcarry is going too far or far enough. Little bit later, another successful test of jeff besos reusable rocket giving him the upper hand in the space war against e lon musk. boy ma, pa why do we settle for cable . mom because were settlers and thats what we do. girl but with directv and at t, you can get your tv and Wireless Service from one provider. dad are not we your providers . Do we not provide you with this succulent jackrabbit pie . This delicious graywater soup . And a single lick of the family lolli every harvest moon . vo dont be a settler, get a 100 reward card when you switch to directv. May not always be clear. But at t. Rowe price, we can help guide your retirement savings. For over 75 years, investors have relied on our disciplined approach to find long term value. So wherever your Retirement Journey takes you, we can help you reach your goals. Call a t. Rowe price retirement specialist or your advisor. To see how we can help make the most of your retirement savings. T. Rowe price. Invest with confidence. [ intense music throughout ] [ fans cheering ] introducing the x1 sports app. Get live stats, averages, and standings. Right on your tv. Change the way you experience tv, with xfinity x1. The dow off the lows of the session by the close down 55 plus points. The s p was down 6. 5 and the nasdaq down 22 points, about half a percent, tesla shares lowering after hours trading after delivering fewer than the 15,000 new vehicles promised in the First Quarter. Automaker previously forecasted it would deliver 16,000 vehicles and blamed the shortfall on model x supplier parts shortages. I think the word hubberous was used in there. We have breaking news on disney. A big move on the executive team. Julia has those details. A big anne unexpected move. Announcing that tom stags, currently the chief operating officer will leave Walt Disney Company and current position effective may 6th and remain employed as special adviser through the fiscal year. This is really surprising because staggs was considered a frontrunner to replace bob iger when his term expires in about two years. Hes been a colleague of mr. Igers for more than 20 years and chief Financial Officer before becoming coo and led the head of disney parks and resorts. The fact he had wide ranging experience and cfo running parks and resorts, everyone thought he would be well positioned to become coo upon his team ending. The company saying in a statement with two years left, disneys board of directors will broaden the scope of its succession planning process to identify and evaluate a robust slate of candidates for consideration. In that comment the company acknowledging this assumption that staggs would be the likely replacement for iger. There are two years to go. It will be interesting to see which big names rise at disney and who is appointed to replace staggs as coo. Back over to you. Thank you. I have a quick question for you because the press release says what julia mentioned two years left before iger steps down and board will have to broaden their success planning but also called this a planned departure. I dont knee if it was planned ten minutes before the press release was written or what. Hes leaving in two years but initially set to retire in 2016. In 2014 he did a twoyear extension. I dont know if thats because the board wanted that much longer for iger to be there for a longer succession or he didnt want to waits around for it. You think whats going on . Weve gone through the press release. What do you think is really why hes leaving here . Im going to have to do more reporting before i can give you my inside scoop anl list. Disney is one of these companies thought to have a strong management team. Staggs was particularly well positioned to take over for iger. A lot of people might say that one of the reasons why they gave that coo job was to make sure that he stayed at the company and was happy and still learning and growing in the next couple of years before iger leaves his spot in that role. I do think its possible he didnt want to wait around. He has a great reputation as a manager. Obviously across different parts of the disney business, i think it will be interesting to see what he does next. That announcement might give us insight into this. Iger is certainly invested in the big things going on at disney right nouxt the shanghai park that launches in a couple of months and bringing these acquisitions to work, like lucas film which has been such a smart acquisition of his. What is it about disney ceo zr, they dont want to leave . Iger has been there since 2005. Very interesting. Stock is down 1 after hours. It started a pretty measured decline when the news first came out but then the losses began escalating from there. Meanwhile, minneapolis fed president keeping the heat on big banks to bolster his case to break up the banks spokes to squawk box in february. I want to be honest with the american people, progress has been made, but we have a stressed economic environment and multiple bankszs are in trouble at the same time, the government will have to step in and bail them out. Thats not an answer people finds acceptable. Now is the time to consider more Transformational Solutions and break up banks is one of them. Some experts advocated turning them into utility, that they cant fail or taxing leverage across the financial system. Well, joining us with her reaction we welcome back into cnbc exclusive the president of Washington College and former fdic chair sheila bair. Happy to be here. I thought dodd frank would take care of all of this . It gives them the tools to too big to fail. I wish he would channel some of that energy into the rule making instead of going on to help make sure we have the framework in place. Whats missing then . Whats not in the regulations that needs to be there to address this issue . The most important thing is would require large banks to issue thick cushions of Long Term Debt to be converted into equity in they fail. So they can continue their operation and avoid the Systemic Risk to the economy. That has industry push bs back and system to risk council which i currently serve on, were pushing on in support of those rules. Theres things on the Playing Field that we need to push for. Theres actual actions we could take. Does it strike you as odd that a sitting and newly sitting regional fed president supposed to be a relatively apolitical body would take such a strong tone on Something Like this . Well, you know, i welcome his insight. I think too big to fail is still a problem. I wish he was as vocal in 2010 when we were doing dodd frank. Even prior to the crisis we worked on this and long tradition minneapolis fed on this issue. Part of his premise is that he doesnt think that this kind of orderly wind down of a troubled bank would happen. There wouldnt be the political will to do that. Is that something you would share . If you had the rules for that longterm debt would we still be in that situation . It would be hard for bond holders to argue this stuff is out there and labeled. Youre in a first loss position if they fail. To say we cant take the loss its going to be systemic. I never really bought that. You want a systemic disruption is something to avoid for customers of the banks and people who use the banks and invest in their debt and equity. Shouldnt worry about saving them. I absolutely think this will work. Lately weve been hearing these reports that maybe technology is going to do this for us, that the Role Technology will play traditional banking roles will eliminate 10 of the jobs, 30 of the jobs in the Banking Industry over next ten years. Youre involved in this. What role will technology play and will that do the role for us . I dont think it will address too big to fail. I think actually there are good synergies between traditional banking and fin tech world. They can compliment each other and bring consumer costs counsel down, which is my hope. Especially in underserved sectors like consumer lending. Their reach the fear is this systemic reach, that was the problem back in 08, the impact on many parts of the economy. If technology is going to reduce some of that reach out there, thats my point. Wont that reduce the fears that people have . It could. I dont think by itself it would deal with the problem but it could, sure. Theres a worry too some of the risk is the banks are as regulated as they are, it gets pushed to the shadow banks and occ said last week they want to explore regulating fin tech but within the banks they already supervise. That would seem like the Playing Field is getting more uneven for the unregulated gray area that much of Silicon Valley is playing am and wall street is having to play in. What would you say so that . Fintech needs the banking system. There are intersections between fintech and banking system. What i think occ is trying to accomplish, look at innovation within the banks but intersection using fin Tech Companies for help in originating loans and particularly on the consumer side. The risk management, if your outsourcing, do you know what the risks are. I think its really both. You need access to the Payment System and cant survive without the two together. Thats really the challenge to come up with the framework that works for both in a way that helps the public. Thanks for stopping by. Also reviews movies on twitter. Very helpful sometimes. Minneapolis fed president Neel Kashkari will join us tomorrow. 2018 could bring Us Commercial space travel, but how viable is Space Tourism . That story coming up next. Im only in my 60s. Ive got a nice long life ahead. Big plans. So when i found out medicare doesnt pay all my medical expenses, i looked at my options. Then i got a Medicare Supplement insurance plan. [ male announcer ] if youre eligible for medicare, you may know it only covers about 80 of your part b medical expenses. The rest is up to you. Call now and find out about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans, it helps pick up some of what medicare doesnt pay. And could save you in outofpocket medical costs. To me, relationships matter. Ive been with my doctor for 12 years. Now i know ill be able to stick with him. 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I have a lifetime of experience. So i know how important that is. Anything worth pursuing hard work and a plan. At baird, we approach your Wealth Management strategy the same way to create a Financial Plan built to last from generation to generation. Well listen. Well talk. Well plan. Baird. Well, saturday marked the third time that jeff besos space startup called blue origin successfully landed the same rocket vertically. Jane wells has been following this story from the first landing and joins us with dou details. Reporter all we know about blue origin comes from blue origin, they are very protective and everything weve seen so far is one success after another. Liftoff. Reporter the latest this weekend as jeff besos Space Company reuse the booster for the third time. Driving down the cost of launches, the rocket went to the edge of space, nearly 340,000 feet up but the real test this time was relanding, this time blue origin waited until the last possible moment to ignite to fire up only at 36 3600 feet and it work. Blue origin hopes to take up space tourists in two years. At the space symposium next week in Colorado Springs and well also be this week in Cape Canaveral where elon musks spacex will return to the space station for the First Time Since a rocket explosion last year. Spacex has launched a couple of satellites and this is the first attempt to go back to the iss and on his rocket another device made by another really rich american. Robert bigelow ooh expandible space habitat will be featured by nasa as a potential future home for nasa astronauts. It looks like a jiffy pop popcorn. Looks like a prop from the set of the martian. Yes, it does. Thanks for all the updates from space. Jane, thank you. Want to track your medications and health information. Theres an app for that, into. Of course there is. A look at one woman and how she used her sons illness for a text platform. The inspiring story that well have for you next. And why stop to find a bathroom . Cialis for daily use, is 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, or adempas for pulmonary hypertension, 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. Ask your doctor about cialis for daily use. Insurance coverage has expanded nationally and you may now be covered. Contact your health plan for the latest information. And you may now be covered. For your retirement, you want to celebrate the little things, because theyre big to you. And that is why you invest. The best returns arent just measured in dollars. Td ameritrade®. One babys heart transplant has sparked an app for patients with chronic conditions to track their meds and their health information. Kate rogers joins us with that inspiring story. Kate . Reporter hi, bill. Were here in seattles Pike Place Market profiling the citys startup ahead of the iconic conference tomorrow. This one taught me to never underestimate the power of a mom on a mission. Heres the story of lion heart innovations. Reporter tammy bauers had no idea her life would change when her sop was born with a rare genetic syndrome called leopard syndrome and at 3 months old underwent heart surgery. She was keeping track of his care in this huge binder and thought there had to be a better way. Two years ago she began developing lion heart innovations, a cloudbased source for a patients medical source nicknamed for landen as an infant, lion. And the works as a collaboration tool for caregivers. I needed a better way to track that information and its not always me caring for hi. My husband is also at home or sometimes we have a babysitter, grandparents and so to be able to all be on the same page to make sure at the end of the day, do you do meds or did i do meds, who did this or do that. Reporter the busy mom was accepted into the Microsoft Accelerator Program in seattle in 2015. Tammy ditched that binder and today all of lions medical care, his care giver schedules and medications are being managed on this app. Reporter the a officially launched this february on lionss sixth birthday and crystal uses it to deal with her daughters genetic disorder. Its a dream for me. I dont have to think about it or calculate hours. Just stick it in and tells me when i need to do. Reporter lion continues to defy the odds thanks to a family fighting for their son every day. So guys, right now the app is primarily being used by caregivers and eventually they would like to see it being used by doctors prescribing it to their patients and were here in cnbc and ink magazines iconic tour tomorrow. A fantastic lineup. Shark tank kevin ollie and robert herjavec, that and much more. Kayla, back for you. Not many apps that will save a life but that one will. Inspirg story. Twitter shares are popping today. Well tell you why up next. They may want the latest products and services, but they demand the best shopping experiences. Theyre your customers. And by blending physical with digital, cognizant is helping 8 of the 10 largest u. S. Retailers meet their demands with more responsive retail models. Ones that transcend channels and locations, anticipate expectations. Creating new ways to engage at every imaginable touchpoint. Its a new day in retail, and together, were building the store of the future. Digital works for retail. Lets talk about how digital works for your business. And that what goes down doesnt always come back up. [ toilet flushes ] so when you need a plumber, we can help you get the job done right, guaranteed. Get started today at angies list. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive insurance premiums, youre wellbeing and politics. Etnas ceo. How the next president could turn the tables on health care. Tomorrow on squawk box on cnbc. Shares of twitter soaring after a Top Executive at mastercard told cnbc the payments giant would be interested in working with twitter as it builds up its payment services. So jack dorsey may be able to turn twitter into another square. It helps. I think the market is looking for beatenup stocks to rotate into. Facebook down and twitter up today. Amazing, crazy stuff. Were all here tomorrow. We are. We hope you will be, too. That does it for closing bell. Thanks for joining us. 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. The traders are dan nathan, karen finerman, David Seaburg and guy adami. Tonight on fast legendary investor mohammed elarian said stocks could fall by 10 . Where does he see them heading now . Hes here in just moments and worst to first. And why it could bring you big profits and tesla falling after hours after missing delivery expectations for the quarter but Something Else could have an even bigger impact on the stock. Well tell what you that is but we start off with breaking news out of washington. Lets get right to