Transcripts For CNBC Closing Bell 20160425

Microsoft and alphabet last week and debate whether apple can turn the tech story around. Global debate about apple. More on that in just a bit. Valeant getting a ceo the same week Michael Pearson is to testify on capitol hill. Also argentinas return to the bond market. Kay kelly will return and tell us what it means. After the bell, well discuss why nikki sixx is calling on president obama to go after youtube. You have nikki sixx and youtube, only on closing bell would you have that. We start in saudi arabia today. All right. We dont start in saudi arabia. So lets go to our cnbc Closing Bell Exchange with the dow down 61 points. Joining with us we have rob weiner, ben willis and Rick Santelli checks in from chicago as well. Ben, the tradition lately has held leading up to a Federal Reserve meeting that the market tends to rally. Not a hard rule but that typically is what happens. Is Something Else going on . Something else is going on. When its the fomc by itself but the problem Central Banks around the world are affecting this market and their indecision is creating indecisions across the equity universe, if you will. People continue to seek safehaven in the fixed income market. You have peoples bank of china moving their yen and making comments about their system and how they are trying to deleverage on the real estate side of the equation. Then you have the people, the bank of japan with some of their comments. Not very effective. This market, i think, is just trading thoe ing on thin air an. People who are short, we call it the short basket, the negative calls, so you see pressure on the solar stocks and tesla and the like, the heavy momentum to the short side. Other than that were not seeing any real investor participation. The skepticism that was prevailing when i left is still very much with us. Oh, yeah. Ron, that opens an interesting question as we move through earnings season. Weve seen some big sell offs. Your loading up anywhere where youre seeing prices come down levels where youre buying them . Frankly, the pes, depending on who you look to its 16 to 18. You look at five years forward for the performance of the stock market once its passed about 15 and a half it doesnt look that good. I think the previous speaker was right you have to pick your spots. For us we own the basket of microsoft, google, facebook and apple. Apple being cheap, but doesnt look like the growth is there. Microsoft looks like it was punished. I think you got to own the basket but i dont think any of them will go super high. They had a great year last year and it pays for them to come down a little mostly because the earnings arent there. If theres no e in the p, theres no price going up. Im working that out. Rick santelli how are the markets setting up for these meetings this week . What your noticing right now well, Interest Rates are going in pretty much at the highest closing yields sometime in march, which is an extreme but if you look at the march high yields, especially for the long run were getting very close to taking those out and comping some of the activity we had earlier in the year. If you look at china, over the weekend the big news was how much debt they are taking on and how little they are actually getting in the form of sustainable growth. Today a new story out they are cracking down on the commodity frenzy. I want goes to show you if you create stimulus to boost markets and try to control where the money goes into which markets its an exercise in futility. It isnt much different we question the communist model. Is ours much different . Is Mario Draghis much different . I heard the discussion would the markets be a whole lot different if it werent for fed. Who knows. All i can tell you is that to have this much meddling by Central Banks and then wonder why the market is having such anxiety, but in the end markets will do better on the took side and rates are breaking out almost no matter what happens. The outflows of some of these fixed income etfs maybe its a rearranging of the deck chairs but its coming one way or another. We talked about that etf stuff. Its not good to fool Mother Nature and that was a commercial and the Central Banks around the world are playing with the markets. They are trying to drive everybody into risk assets and you know what . That almost never ends well just nobody knows how it will end. Thats a little scary. Ron, theres Conspiracy Theory thats playing out. Its hard to argue with it quite frankly but the Central Banks in an attempt to stimulate inflation are using the commodity markets. China is now known to have over 80 tankers lined up to continue to build their reserves on the oil market which explains some of the buys that are still in the oil market. The refining is picking back up. You see extraordinary Trading Volume happening, rebar, flaxseed. Bizarre places. In order to create the demand and create the Inflationary Pressure to lift, now you have the bank of japan making the announcement they are in the top ten holder list of 90 of the equities that trade in japan. They continue to buy their stock market. That is market manipulation. That cannot end well. I think flaxseed is the future. But ron, that point on oil, you know we have, of course, some big moves coming out of saudi arabia. What do you do here if you either try to make a call on where the price is heading or are you avoiding the energy space entirely . So the two of you guys, both of you are remember around february i said mlped are so damn cheap and you both said youre nuts. Remember . They are up 45 . Great call. You made me a little worried. But what die say . Anyway the truth is they are cheap. Not cheap any more. Oil is not cheap. They came back. Theres a lot of supply. You just dont play heavy in that. We play the mlp because a lot of our clients were advisors. They needed the yield and its tax advantage. Otherwise we dont own oil. I think where you got to go, you got to look for where are things anywhere near cheap. I think the biotechs and otherwise stay with the multinational large cap. We should have been at 3 , 4 in emerging markets this year. Thats okay. We should be more in europe. Dont mind. Its fine. Stay in the u. S. And be safe. Very good. Got to go guys. Those of you who have drinking games waiting for mention of flaxseed this was a red letter for you. Your ship finally came in. Thanks guys. Lets get to saudi arabias multiyear plan to shake up its economy and reduce its dependence on oil. We have the map ready. Cnbc goes to riyadh tonight. Reporter hello. Its a total survival without oil. The deputy crown prince of saudi arabia, the son of the king says its possible for the kingdom to get there as early as 2025. He released his details about the National Transportation strategy, a plan to get this country diversified away from oil revenues. Hes basing this plan on 30 a barrel. Doesnt expect that oil price to go below that or at least not very much. He also said hes going about this in a different way. He says as part of this ipo of saudi everybody a ramco, it could be between 2 and 3 trillion. About that ipo of aramco they are valuing that above 3 billion. So very bold plans. They said some interesting things about the defense sector. This country is the Third Largest buyer of mega defense projects from the United States, from europe, particularly from the uk as well of these massive defense projects and basically what they said now is Going Forward they want to be buying at least half of everything from local suppliers here in saudi arabia. So thats pretty big news for the Defense Industry in this country or the bourgeoning Defense Industry in this country. One thing we didnt hear earlier from the crown prince, a lot of speculation whether or not they would allow women to get behind the twheel drive cars. Theres been so much over the last year and a half how women have to be a bigger part of the workforce. But theres no news about getting them behind the wheel. They said this is not a religious issue, its a societal issue and will move forward when society is ready. Thank you again. Its not just about what they are doing in the oil industry. This is a much broader set of announcements. Big time. Thats for sure. Dow is down 73 points. S p is down eight. The nasdaq is down about 20 points. Pretty much exact same. Everybody is down a like amount. While you were gone last week a lot of different behavior. The nasdaq in particular was higher. Again today everybody down. If you havent heard Valeant Pharmaceuticals has named joseph papa as ceo. Well look at whether he has what it takes to turn the company around. Well discuss what could be apples first yearoveryear decline when it reports its results tomorrow. Youre watching cnbc, first in business worldwide. Im in vests and as a vested investor in vests, 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. I built my business with passion. Plan your never tiring retiring retired tires retirement 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 . Atand that horrible smellstee are really good at hiding. Vice, oh, boy. There it is. Ohh. Ooh. [ gags ] so when you need a house cleaner or an exterminator, we can help you get the job done right, guaranteed. Get started today at angies list, because your home is where our heart is. You see both Time Warner Cable and Charter Communications trading up about 3. 5 . The acquisition has been approved by the Justice Department and the sec chair is recommending approval. The approval does come with conditions, such as not limiting access to streaming video or imposing prices and data caps based on usage. Time warner cable is due to report its quarterly results. Valeant hiring joseph papa as its new ceo. Meg terrell takes a closer look. Reporter their hearts. This of course did come out last week that joe papa is moving over to replace mike pearson as ceo of valeant sometime early in the may. If you look at the shares of both of these companies, valeant is really down slightly, not really reacting a ton. They acted pretty positively on friday. In terms of valeant its r reinforcing whatever preconceived feelings they had about valeant. Folks who were bearish are saying does he really have the right amount of experience . Is turn around guy or a guy who just knows how to do a lot of acquisitions which isnt the right strategy for valeant. People who think this is an Inflection Point they say this guy has a lot of credibility, can steady the ship. If you look at perrigo shares. They are losing papa as their ceo but warn what will happen with their earnings and people are taking thats a big problem and models its growth Going Forward. Just thinking about, you know, if euro receiyoure josept do you do . Do you say well hang on the assets we have and become a more Boring Company or does he see value the approach valeant had and will he try to salvage that. How much larger has the drug pricing market turned against them. Reporter thats a great point. The fact that one of the things they cited in lowering their guidance was this new pricing environment. Its interesting that the ceo is going to valeant which some could say was one of the initial sort of spurring companies of this issue of drug pricing. On wednesday theres a drug pricing hearing on capitol hill focused on valeants business model. So the fact that this is affecting the rest of specialty pharma, this is interesting. By the way before we go the next topic with you, meg, kelly has paid me good money to mention shes written another article about finding value on valeant. Check it out on her spark column on cnbc. Com thespark. Meantime, meg, sarept ara, can bring us up to date on that. Reporter there are hundreds of Patient Advocates here just outside of washington, d. C. Right now the public testimony is going on. Theres almost unprecedented amount of time be a lotted to this for 52 speakers, most people very passionately pleading for the approval of this drug. Muscular dystrophy is a this drug was from a trial in 12 patients. Fda say theres not enough data to know whether this drug works. I spoke with a mother of two boys who has dochenne. Thats essentially the claim that the fda is making at this point that our boys are doing well because they want to be doing well. What does that say to the boys that just stop walking that they werent trying hard enough. Thats why they stopped walking . Were insulted. Angry but were motivated and were about to take on two and a half hours of real expert testimony. That two and a half hours is was going on now. You feel the anger in the room. What well have at the end of the day a vote from an outside panel on whether that data is there to support approval of this drug. Fda is set to decide by the end of the day. The stock is halted today. Meg, does ito like the fda is turning away from this decision. Big gap in those shares were on these advisory opinions that sounded like, to your point, they are just going to take this cautiously and its been a years long drawn out process. What happens if they dont get approval . Reporter its been an extremely long run for sarepta and two other drugs that have hit blocks at the fda recently. Folks are concerned, the wall Street Community is pretty bearish on whether this drug gets approved and people in the community are very concerned that if this drug doesnt get approved kids cant take it any more even on an experimental basis. I think i heard a huge cheer behind you in the auditorium. I wonder what thats about. Maybe a new development. Thanks, meg. See you later. Meg terrell there in maryland. Lets head to the break. 40 minutes left on the trading session with the dow down 74 points ahead of as about week of earnings. Central Bank Meetings around the world. When we come back why investors are hitting the sell button on xerox. Argentina turning a quarter after selling bonds last week. Kay kelly has a special report coming up. Thank you. Imagine if the things you bought every day earned you miles to get to the places you really want to go. With the united mileageplus explorer card, youll get a free checked bag, 2 united club passes. Priority boarding. And 30,000 bonus miles. Everything you need for an unforgettable vacation. The united mileageplus explorer card. Imagine where it will take you. Which allergyeees. Bees . Eese. Trees . Eese. Xerox helps hospitals use Electronic Health records so doctors provide more personalized care. Cheese . Cheese patient care can work better. With xerox. Thats it. How was your commute . Good. Yours . Good. Xerox real time analytics make transit systems run more smoothly. And morning chitchat. Less interesting. Transportation can work better. With xerox. Basisbasis. Welcome back. Keeping an eye on markets here, all down about. 2 of a percent. Dow is down 72 points. Gold was lower. Camera makers inventory levels nearing all time highs, those shares are down 9 . Gopros acquisition is one yankeely to attract new users. Xerox is trading lower. Maker of copiers and printers cut it its full year earnings due to competenexpenses to its break up. And wynn resorts highlighted the risk to gambling. Argentina making a return to International Capital markets. Kay kelly joins us with these stories. Welcome back. Good to be back. It was an astonishing thing that argentina did last week, something unthinkable a few months ago. It raised over 16 billion in the public bond markets in a deal reportedly was well over subscribed. Bond offer was successful enough the country paid off a group of long standing creditors it can fund its deficit which 18. 4 of gdp and avoid further borrowing if it wants to for the rest of the year. Argentina bonds rallied late last week and its stock market moved over 2 in the last week although in negative territory today. That spike comes after bond holder battled argentina in court to be made whole. It got paid 2. 4 billion it was owed. And paul singer said the back and forth between argentina and the hedge fund was a commercial dispute not an ideological war. It marks an important precedent for the rule of law. Interesting as well that this is one we remember when the ships were seized off the coast of africa and all of that. Yes. I understand that argentina is a different country now it has new leadership, trying to move in a more business friendly direction. People have been burned before trying to get their hands on this debt. Nathats absolutely true. Theres a long series of disappointment. But the new president has said hes dedicated to change for the better, to getting the economy in order among other things. A lot of people are bullish argentina medium and long term if some of this wood were chopped. They have vast oil reserves. A lot of people are excited about the national oil company. Its the number one holding for hedge funds. And, theres a lot of promise once normalization returns. Is it Market Perception is very important for argentina to be able to pull off this bond offering. Is it simply the new leadership that allowed that to happen . You know, i honestly think so. I think the administration had almost a marxist sort of view. They were opposed to paying out in fulton dollar on these bands after everything the country had been through. To be fair there were a lot of challenges, a lot of joblessness, a lot of poverty. They are not wrong they are in a tough position to pay out to any credit tore. Optically speaking they are offended these hedge funds were doing the asking. Interesting questions though as singer points out. Hes saying the best thing we have is the rule of law and court system in order for credit tors to feel comfortable to take a risk on these emerging markets. Thats a fair point. That said it was really a brutal process for the country and, again, the people to some degree was held hostage to this tussle. A different story when you went out on maternity leave. There was hopefulness in the credit market but at the same time no real moves have been made and this was back in january. So i think even people on the bond market side are pleasantly surprised. Time now for cnbc news update with sue herrera. The u. S. Air force has flown in two f22 raptor fighter jets to romania to deter russian intervention. They landed today at an airbase in southeast romania. A Pennsylvania Appeals Court has rejected bill cosbys attempt to halt his criminal case because of what he called a decade old deal not to prosecute him. Cosby is facing trial over a 2004 encounter at his home with a then Temple University employee who says she was drugged and molested by him. Prince is proving to be just as big a chart topper in death as in life. His music is among the top slots on downloaded charts on amazon and itunes. There were 2. 3 million prince song sales in the three days following i had death. General electric is at it again. The company that once used grilled meat to make a point about science has engineered its own brand of hot sauce. Ge is manufacturing 1,000 small bottles as a way to draw its attention to its Technology Prowess and helping people understand the Science Behind its innovations. Its called 1032 because at 1032 calvin matter creases so exist. Thats the temperature, if you remember your physics. How hot is this hot sauce . Are you a hot sauce aficionado. Tabasco which is the most famous is measure they measure hot sauce in heat units. Tabasco is 3,500 heat units. One of the peppers used in the ge sauce is 2. 1 million heat units. Now where s ira cha falls on that list hotter than tabasco. This is one of the hottest hot sauces out there. Hot sauces are very cool right now. Hillary clinton was just talking about hot sauce. Exactly. They are trying to get millennial scientists. They want the Young Technology entrepreneurs to come to ge instead of going to the start ups. Im not kidding. They did it last year. Because their commercial campaign were working on industrial machines and hot sauce. And hot sauce. Thank you, sue. See you later. We have a news alert. On the Golden State Warriors and ste steph curry. Curry has sprained his mcl and will be out for two weeks. Back to you. A sprain is better than a tear. Still painful. There were rumors or reports on twitter he might have done a worse injury. Reevaluated in two weeks. Lets take a look at shares of under armour the shares themselves havent moved that much. Down 1 on the session. Lets head to the close. Were coming in the final half hour with the dow down 65 points. S p right now down about 8. A leading trader will tell us what hes watching. Newspaper consolidation in the works. How and why coming up. Unlimited data from at t means you can stream it all. Like that Anthony Michael hall movie where he fights with the girl. The one where he gets rejected by the girl. Even stream the one where he creates the girl. With unlimited data, you can stream all the Anthony Michael hall movies you want. I wonder what hes up to these days maybe hes shopping in an at t store . Get unlimited data and your fourth line free when you have at t wireless and directv. Plus, up to 650 in credits to help you switch. Im spending too muchs for time hiringnter. And not enough time in my kitchen. announcer need to hire fast . Go to ziprecruiter. Com and post your job to over 100 of the webs leading job boards with a single click. Then simply select the best candidates from one easy to review list. You put up one post and the next day you have all these candidates. Makes my job a lot easier. announcer over 400,000 businesses have already used ziprecruiter. And now you can use ziprecruiter for free. Go to ziprecruiter. Com offer6 ooh. Welcome back. This has to be the biggest gainer on the street, Tribune Publishing up 52 after gannett offered to purchase tribune. A 63 premium over tribunes close on friday. Tribune publishes papers like the l. A. Times, Orlando Sentinel. Gannetts Properties Include usa today and the detroit free press. Gannett is the biggest print and digital news company in the u. S. And clearly it wants to get bigger. More consolidation across that space. Less than half an hour to go in the session. It must be a Central Bank Week because all the indexes are up by the same amount. I think well look for more fiscal stimulus. Down i should say. Bank of japan will be the one that well focus on. They have to continue with the negative rates. Were looking ron fournier fiscal stimulus. We had some bearish numbers out of oil. You expect oil to be down much more than a dollar based on if kuwait will increase production by almost doubling their production, iraq by a million barrels, saudi arabia Still Producing at high levels. Basically you think its a lot of bearishness but expectation of Central Banks delivering. Only 21 increase that were looking for a june rate hike here in the u. S. Were seeing Money Managers chasing the return and thats whats holding the market up. Friday was an example where earnings didnt dictate what the market was doing. We should have been down a lot more. Well let you get back to it. Thanks a lot. We got 24 minutes left in the trading session heading to the close with the dow down about 60 points and still ahead the history making Golden State Warriors dealt that rough blow last night with the injury to steph curry. Well discuss the impact. A curriless playoff it could have on the league, the sponsors and everybody. But first Apple Earnings set to be released today now coming out tomorrow. So well preview what may be in store coming up. The call just came in. Shes about to arrive. And with her, a flood of potential patients. A deluge of digital records. Xrays, mris. All on account. Of penelope. But with the help of at t, and a network that scales up and down ondemand, this hospital can be ready. Giving them the agility to be flexible reliable. Because no one knows like at t. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive weve been watching the transports here this year. They have been about a bellwether now for some time. Again today they are down 96 points, 1. 2 when the market is down less than half that amount. Its not the kind of activity feel better if the transports were up if the market were lower. And reverse correlation with oil is out the window. Express scripts one of the worst providers in the s p this year they have earnings coming out after the bell. Lukewarm numbers could cast more doubt. Lets get a preview. We head to bertha coombs. Reporter the express scripts story is really a case of tough price negotiation being a two edge sword. Express scripts prize itself on being hard on drug companies, to get the best price. Now they are under pressure from anthem their biggest customer for not giving them some of the benefits of that tough drug pricing. This afternoon well be watching for 1. 22 on the bottom line for First Quarter earnings and about 25 billion on the top line but what analysts will be listening for when they have their Conference Call tomorrow, whatever commentary is put up this afternoon is the situation with anthem. Anthem is suing express scripts for 15 billion in damages claiming that express scripts has overcharged them on their contract. Anthem represents about 16 of their revenue. So when you take a look at the yeartodate chart you see a cliff happening in january, when this dispute went public. I want has cost anthem so far about 4 billion in market cap but it has a lot of uncertainty as to whether anthem is going to continue its contract with express scripts. It runs to 2019 but in that lawsuit anthem wants to terminate it. Express scripts has counter sued. Again this is likely to be a very big topic on the Conference Call. Well see what they say in their release after the bell. Back to you. Exactly. Thanks bertha. Again, we had perrigo talking about drug Pricing Trends turning against them and lowering its guidance this morning. We look forward to that after the bell. 18 minute left to go here. The dow down 48 points. A little bit off levels earlier. S p down six. Transports are down 98. Nasdaq down 16. Well take a break, come back and preview apples earnings tomorrow and whether they can turnaround the struggling tech sector. 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. We have Pattern Recognition Technology on any chart plus over 300 customizable studies to help you anticipate potential price movement. Theres no way to predict that. Td ameritrade. Im in vests and as a vested investor in vests, 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. As investors gear up for apples Earnings Report tomorrow one chinese billionaire entrepreneur is making waves today calling the tech giant outdated. Translator in china you can see apple has already begun to lose the rapid sales growth momentum. One of the most Important Reasons is that apples innovation has become extremely slow. For example a month ago apple launched the iphone se. This is a product with a very low level of technology. They launched it in order to grow their Customer Base in order to increase their profit margin. Well, lets get both sides on the apple equation right now. Kevin oleary is our resident bear and david pearl. Kevin you sold your shares in apple last fall for Different Reasons than the fears that maybe they lost their fast ball. What do you think about this ceos idea, though, that they are out of date . Im more concerned about apple as a growth story going through transition to a value yield story. You never want to own a stock during that period because it has to find a whole new pe. Apple is doing that right now. If i think about the product itself and focus on the metrics and the difference between what apple was three years ago in iphone innovation because this is a one product company, what happens with the 7 and the advance in the fall of new products in the iphone determine how this will work out because this quarter is a throw away quarter. Ill say one thing. I constantly try every product in the market. I just got the samsung 7 edge and ive always felt android was a lesser product interface. Im sorry, they solved that problem. This is a hell of a product. Its going to give apple a hell of a run in the next couple of quarters and thats another problem for the company. So all that said, david, make the case for the company. Yeah. Its not a Hardware Company its an eco system. They provide a simple elegant solution to your problem. Back in music it was the ipod allowed to you carry music and it wasnt the hardware it was the fact that they had the operating system and the itunes store. Now with the iphone it is ios and the app store. And while android clearly keeps trying to catch up, User Satisfaction of ios is far higher than android. That results in users staying with apple products for years, eight to ten years. So once people are in the eco system and they built up this knowledge and understanding of how iphones and the app store work they dont leave. So its just a question how fast they upgrade backing to innovation and new products, the upgrapd upgrades in the iphone and services. Apple is 10 services. They are doing apple pay and Music Service and it will continue with tv. Kevin, what do you think . He put a lot on the table there. Youre saying its a one product company. Hes pointing out to the different applications, apps and a whole eco system. I agree. There was a lot of catch up that android and samsung had to do. But my point is they not only caught up they passed apple. You havent seen the impact of that yet. Get your hands on some of these new products. I used to not like the android operating system for all of those reason. Im sorry, i got to tell the truth. They passed it on features and interface. Theres tons of applications. I cant find one on apple because i got both devices, i use both every day. Im sorry right now this horse is winning whether it manifests itself by the end of this year in increased market share you got to tell it what is it. Its not a compelling story now for the investor. They use debt and return on assets is slowing and margins are slowing. I dont see any reason that this stock is going north any time soon. David, teen Software Case still relies getting in front of people somehow whether its the phone, whether its the watch or its computers. Or the tablet. Obviously they have compelling products in every category but can they continue to sell those products that ultimately what they leverage in software. Their market share versus android has been stable for years even though they are higher priced and results in higher resale for your old iphone. If you think of the apple watch as an example, the phone took three iterations to be successful. The next apple watch will not need to connect to the phone to do things. We think that will give it a real edge. Then back to the stock, remember apple is selling at 11. 5 times earnings and the stock Market Selling at nearly 17 times earnings. What that tells sue theres huge disbelief about the stock. Very low expectations, low bar and this is a company with almost 200 billion of cash. They can buy back a lot of stock, raise their dividend. Stock is clearly undervalued if you believe its not shrinking from today onward which we dont. Thank you guys. Good to see you. See you later. Let me tell you, art cashin stepped by. The market on closed orders on balance to the buy side. Well see if that brings the market back here. Were down 58 points on the dow. Joining us now is steven gallagher. We went a whole hour and only mentioned the fed one time. How times have changed. You dont expect any change. Not this week. What we could expect is signalling and less dovishness for them to come out later this year. Maybe june. Certainly less dovish than maybe the market anticipates. How important is the next chapter here because as we heard earlier perhaps its the only reason these markets havent done worse. At the same time everyone is making the case we need more fiscal policy. You look to canada. They are trying to booth growth. How much can Monetary Policy deliver here. No question Monetary Policy cant be much more to stimulate the economy. They are at limits. They dont like to say that. They like to encourage us to believe that they always have tools in the tool box. Right now were not looking at them to stimulate, were looking at them to raise rates or to start hiking and how gradual that path may be. Everyone thinks its a very gradual path but they think thats twice this year and the market is no rate hikes this year. And every rate hike is a market disruption or market turmoil so we have to be very watchful for that. You have to navigate that as a money manager as well. Where do you put the Money Network with. Not a lot of safe places. It was easier a month ago. The markets very well priced right now. You got to go in defensives. Defensives are very expensive. I look very short term defensives, maybe in the telecom sector. An area that hasnt been played up very much. We still see profit growth. Thats one of the areas in this market, you know, q1 yearonyear profits. Longer term im still a health care fan as a defensive strategy. We shied away from it because of the elections and what clinton policies may do to health care, so i think the fact we shied away from it. Its a value for us in terms of a longer term play. After the election . Before the election. Thanks, steven. Good to see you. Well take a break. Come back with the closing countdown. After the bell, nikki sixx leading the charge against youtube. Calling for an overhaul of copyright laws and appealing to the president. Youre watching cnbc, first in business worldwide. 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. 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Again, as we point out typically the dow or the market will rally into a fed meeting but that has not been the case today. But it has come back a bit from the lows set this morning. Crude oil continued lower. That has, after recent rallies, 40 was the number to watch, bob pisani but its come off those highs. The story of the day for me is the offer by tribune organ n ga for tribune. Tribune media group owns the l. A. Time, chicago tribune, Orlando Sentinel amoeng other things and on friday its market value was 238 million. Its a microcap. That tells you whats happening to the newspaper industry. Express scripts will be one of the companies were highlighting after the close with its Earnings Report. That tribune game is all about scale. Combining back offices and making it easier and cheaper to publish. The Printing Presses are a fortune to run. Thats a liability. Having a printing spraes liability, combining those operations will help. You were speaking about oil here, Pioneer Natural Resources will be reporting after the bell. This is one of the big shell players, eagleford in texas, big loss, 75 cents. This may be the bottom. Thats what everybody is looking for. Whether this quarter is the trough in earnings. I think we want to hear a little bit about whats going on in Production Growth. They are anticipating their Production Growth of oil will grow 10 this year. Can you believe it . You would think they would cut it assuming the price will go higher. Their cap x spending is still 2 billion. People want to know if theres any more cuts in Capital Expenditures and whether production is expected to grow roughly 10 this year. The big thing, is this the bottom here . Any sense at all that production will increase or oil prices will expect to be up in the second half of the year and if they are talking about 50 or 60 at the end of this year definitely theres the bottom. But then the question is what does that do to the equity market because the correlation is not valid. These stocks have moved up in anticipation. The second half of the year youll see oil prices certainly above 40. Also remember on friday or thursday excuse me exxon is reporting. Rex tillerson was saying if we get oil above 40 youll see production come back in the shale areas. Saudi arabia begins to diversify its economy, 2 trillion. Maybe that signals a bottom in the market. That i want to see for aramco. There will be a fight for that listing. I think thats over. Thanks bob. See you later. Ringing the bell at the big board. Empire startup. Thats the first hour of the closing bell with the dow closing down about 25 points well off the lows. Stay tuned now for more close bell with kelly and company. See you tomorrow. S p was down three. Hanging in there. Lets call it 2087. Nasdaq down to 4895. Coming up well have nikki sixx talk about how hell take on congress and youtube to fight for the future of artists. Weve looked like it was almost problematic trading. Everything was down the same amount and back the same amount. Is that all a central bank effect. Just a pause in front of a very busy week. We have very high volume in terms of earnings and we have big earnings like proctor and gamble, like amazon, like a lot of Big Companies. Were waiting. We also have the central bankers, the fed, the boj. Then you also have to step back and see what does oil price dose. They were down today. You had this risk off feel to the market today. But it could easily turn the other way if we get some good earnings from like pioneer or other companies. Well hear from express scripts after the bell. The focus is on apple. After we saw the declines in microsoft and other names, apple is not the best barometer but still a huge part of the index. Its a widely owned stock. Its going to be a tell how the consumer is feeling for starters as well as how stock investors are feeling. I agree with what stephanie said. Theres a waiting in the wings. I was literally just on the phone with somebody saying this almost so far felt like a vacation week. In some ways there was. Plenty of spring breaks happening. New york state, public schools, this is the week off. Its scattered throughout the month or two. People are on vacation. People are making moves. They want to know more about the fed. They are looking to japan. They want to get into these earning details. One of the other things this morning, perrigo, stephanie, its shares were down because the ceo is leaving to go run valeant. But it talked about drug pricing. That environment has changed. Changed for the worse as far as they are concerned, more difficult to pass on any kind of price hikes. How does that ripple through one of the most loved sectors. Perrigo is very strange. Had such a terrible quarter. Then the ceo leaves. It was the trifecta of bad. A lot is discounted. You want to pick your spots. If you go to health care i like the hmos. United had a great quarter. Have to hear about this m and a and approval from regulators. Biotech sets up pretty well for the second half of the year. This group has the political overhang and you have to know that if you invest. Speaking of m and a this tie up between time warner and charter. What are the implications there, do you think . You know, people are playing this market at such a high level macro that people arent even looking. We talk even specialty pharma. Then you go into cable. Then you go into streaming. People either care about it was the fang stoncks, utility plays. I rotate in and out of them. Its that simple to me. How long has this been going on, would you say . This has been going on, probably for the last year or so. But when you really think about it this week why were the volumes so light . Everybody is focused on Central Banks. Thats what everybody is waiting on. Thats why you see utilitys come back in vogue. Is that reflective still of whats happening with all the central bank stuff . Definitely. I think people are still searching for yields. When you get down to brass tacks on it where will you get any type of return on your money and when people throw out utilitys, you have to look and say where will i get that. I got a stock that trades like a utility. Lets talk about japans experiment with negative Interest Rates. Its meeting is coming up this week. A lot of central bank activity. On that note lets bring in jeremy schwartz. Good to see you. You know we were talking about crowded trades. Held jobs japan being one of them and one that totally moved away from people when the yen was stengthensing. We have a big meeting coming up. What do you see happening . Japan is the epitomy on that and japan is selling off on the strong yen. They went to a negative Interest Rates. They are surprised by how the currency has reacted. Sort of a flexible approach. Last week youre hearing stories they will make banks have funding. Thats something youll see more this week, banks can access, like the european banks have negative funding. They will step up their asset purchase program. Whether its this meeting or next meeting they dont like whats happening with the yen. Have they given it enough time doesnt it take time to have massive amounts of policy implementation into the system to see results. I know the yen they are not happy with. But i think just seems like yesterday they were putting in new plans in place and now we have other plans coming. We dont know what will work when. Mario draghi tried to say that. He said we Just Announced so many new mers. Japan when they went to negative rates it went so far against what they expected. Central banks are tools. We have more tools. Well address your concerns. So i think they might do one more negative rate to say we think it will work. Well do it in a way it addresses our contention. Giving banks lower funding at negative rates and hopefully stimulate. You guys have to talk investors off the ledge. I talk about japan from equity standpoint. Its one of the most attractive equity markets. The u. S. Has 4 spread. They have negative bond yields. Earnings yield has equity basket. So i think thats twice as attractive as u. S. Equities. So the search for yield with negative yields over there on the ten year bond will shift more people to equities and still attractive. Is that attractive long term option or temporary . How do you look at it . The stocks are real assets. Exposed to the global economy. Not just about japans local economy. I think its long term. Japans equity market is a big equity market and it has a much half the price as the u. S. I also wonder, so we have some kind of fed hikes coming if you believe basically what the officials are telling us whether or not the market believes it. How is that gap going to affect markets back here. If were continuing to move towards Interest Rate hikes and everyone else is doing forget how it affects. If you want to pull the dollar in, we all know the effects of s p 500 companies and their exposure overseas. But i think its easier than that when you look at our treasuries. You look at our treasuries and our fed fund rates. If you close that gap everybody is worried about the inverted yield curve and pushes us into a recessionary environment. But japan can maybe go in another one, i think the fed maybe they want to get one in before brexit. It would be for me i thought they should have never raised in december but if you look at where they are kind of painted into a corner right now with the market being where its at wthe dollar staying where its at, the fed might want to raise one more time. If thats the case, whether it happens sooner or later the dollar index is back below 95 today. It was flirting with 100 before this period of weakening. Could it go right back up there and what exaimpact would that h on companies . Its more of a consensus dollar weakening trade. Thats why energy and industrials and cyclicals doing well. The onus is on Economic Data that comes out that supports were growing and that we can handle a strongle dollar if it happens because better underlying growth. This whole thing about japan, ecb its creating a lack of confidence around the world. You mean general uncertainty . Right. We have no idea what will happen with the fed. The markets are at around all time highs. I think you almost have to ask yourself and this is what i battle with, is this their perfect scenario . Have they mastered dollar trade . Have they mastered where text markets are . It used to be sell yen buy equities and maybe thats a little bit off now. I wonder right now when you look at the s p just a whisper away from all time highs have they been successful when we try to figure out how much more clarity can you put it. Traders have become gun shy when it comes to unpredictable Central Banks. Certainly macro traders but others too. Look at the swiss miss last year. Businesses were ruined on that. At this point people are hanging back. They dont want to be caught on the wrong end. Thats why, jeremy, if for some reason expectations are very high, bank of japan doesnt deliver in its meeting this week what happens . I think people expect them to do more. Youre going see them do more on the fiscal skied. Thats one of the big things. People are saying central bank is out of tools. They will have valuations that are supportive and more action from fiscal side and bank side. Lets get to courtney regan. Reporter we want to bring you the earnings for the container store. Ill remind the viewers and the listeners this is a market cap under 300 million but nevertheless shares are popping after hours, up nearly 17 here, reporting earnings of 20 cents in line with estimates for the Container Stores Fourth Quarter. Slight beat on Fourth Quarter revenue, beating 231 million for the consensus estimates. Sales stronger. Consensus looking for a negative 4 for the comparable sales. Thats better. Looking forward for the guidance for 2016 the revenue guidance is below expectations. But the Earnings Guidance is within to slightly better than expectations. As you can see shares are popping. One other thing i would note the ceo also points out hiking efforts when the Savings Program cutting costs in a comprehensive manner which includes company wide salary and wage freezes, 401 k match freezes, reduction in payroll and extensive efforts to drive costs out of the business. Back to you. Wage and salary freezes. Thanks a lot. Those shares up 17. 5 . Any thoughts . Will this bolster the market . Heres a positive release. I dont think theyve met a number an expectation. They will get an expectation that was solo. The issue from a fundamental point of view they have to spend a lot more money and they are reorganizing and restructuring and lot of that money will be used in the second half of this year. You cant make a margin improvement case until next june. Even if demand comes back, the operating leverage store is a hard one. I ordered two folding iron book shelves from the container store. No assembly. Earnings on express scripts going to the broader backdrop, waiting for these numbers. Bertha coombs has those. Reporter express scripts numbers were in line of 1. 22 a share. Its actual revenues were slightly shy of expectations at about 24. 7 million. The street was looking for slightly more than 25 million. They are raising their guidance and in part because they are amortizing their contract with anthem more quickly than they did. So they are doing a different accounting for the contract with anthem. Of course the back story anthem is suing express scripts and wants to terminate the contract because they feel that express scripts has effectively been gouging them, overcharging them for drugs that it purchases for their plans. Meantime express scripts has counter sued, but they say in their release that as a result of recent events regarding our discussions with anthem, which culminated in the filing of a lawsuit on march 21st we felt it prudent to consider likelihood of either nonrenewal or renewal on substantially different terms. The likelihood of that had increased. So beginning in march they started amortizing their agreement with anthem more quickly over the life of ten years. They originally looked at it over 15 years. That agreement is slated to end in 2019. Anthem, of course, is suing to terminate it earlier. You can see the stock is either side of unchanged. We wont get that much more color here this afternoon because the Conference Call is not being held until tomorrow morning at 8 30. Back to you. Thanks so much impeach just to reiterate revenue a little bit light. There are about to ungodergo a o transition. I think unfortunately for this company the anthem contract, one way or another, has to get resolved for this stock to work. I think the numbers are going on. There might be an accounting change. They are doing more in terms of buy backs to get those numbers up. To invest in this for the long term you earth have to look fast anthem contract. But you have to glue that decision for the stock to work. Any closing thoughts . The overall market you have to wait for the rest of this week to see where everything kind of pans out. But i would also say if you get a yield play at a discount you want to continuously invest in those because those have proven the only thing that you can bank on. Utilities and energy. Thanks for joining us. Steve and the rest of the crew are coming up at the next hour talking to Dennis Gartman why one group of commodities is going wild. Well discuss whether breaking up the big banks would be good or bad for the shareholders and the economy. The results of a new report are after the break. Plus sick snikki sixx lobbying president obama and others to make youtube pay them for their music videos. Youre watching cnbc, first in business worldwide. Welcome back. Our countrys Financial System is quote concentrated like never before. According to a new report. The report states that the big banks and the likes of fannie mae and freddie mac and Federal Reserve have more than 20 trillion in Financial Assets which is more than our countrys annual gdp. Now despite that staggering number, theres not strong evidence that megabanks are an inherent problem for the economy. Welcome fred. 20 trillion is a big number. Why did you lump fannie mae and freddie mac and the fed into this particular calculation. What were looking at is concentration in terms the of the u. S. Financial markets and they are concentrated like never before. Its not just the private but the Public Sector too. Fannie mae and freddie mac were to be dismantled but here we are seven years later and they are very much part of the federal government. What are you getting at when we talk about concentration. Is the problem of Financial Sector is bigger than our gdp and whether its public or private or a different point . The question is historically the United States we had less concentrated Financial System than the rest of the world. Thats been pretty good for the United States. There are obviously a lot of historic dabebate about centralized banks. We have the most snag significant situation. Big four banks controlling 50 of the bank assets. But the real issue we look at when we dug in is saying theres not necessarily a big problem with big banks the question is unprofitable big banks. Just a quick question. When we think about the political discourse were seeing in this Election Year and debate over the risks associated with the large banks isnt this sort of a too big to fail question and a concern perhaps theres not a risk in the present economy but if we hit the skids again and some of these banks were to require a federal taxpayer bail out then you have a whole series of cascading issues. That something youre looking at as well . Yes, of course on too big to fail. This is a different issue. This is a growth issue. When you have concentrated Banking Institution and huge institutions with 10 of the banking estimates not able to grow because they have to control capital isnt that slowing our growth . When we look globally isnt this concentration, couldnt it be slowing growth throughout the globe not just the United States. What about the regulatory problem or issues or overhang. These companies are very big. I agree with you. The regulation that these companies have had to go through for some many years and the capital that theyve had to raise ongoing doesnt that at least put them in a better position from a capital standpoint and eventually returning that cash to shareholders which is a nice concy allocation . Yes. Its really too big to grow. I think if we look today, we look at wells fargo a company that has raised the capital, stronger than ever, makes its cost to capital continues to grow. I dont think anybody can find much problem with that in the economy today. On the other hand when you look at citi or bank of america still struggling cant make their cost of capital after all these years thats the real issue we raise. Theres evidence that these banks are putting their increased deposits to work in terms of making more loans or bigger loans. There is. However if we look since the financial crisis Smaller Banks have been growing loans much faster than the larger banks. That raises the second question the growth question. Whats going on today these big banks because of regulation and lack of profitability not growing loans, not growing the economy the way we would have if we had a more fragmented banking system. You could read this is the problem with big banks they dont need to be regulated and broken up, they need to be less regulated and more profitable. Ill leave that for people to argue about. Hike hillary and bernie sanders. Exactly. Intriguing report. United airlines ceo is the latest to buy shares of his own company. Should you follow moves of ceos. And ted cruz and john kasich teaming up to stop donald trump from clinching the republican nomination. Is it too little too late . Were back in a moment. We built our factories here because of a huge natural resource. Not the land. The water. Or power sources. Its the people. American workers. They build worldclass products. And that builds communities. And a Better Future. For all of us. Because making something in america means so much, to so many. Weathertech. Proudly made in america. Welcome back. You can call at any time ceo seal of approval. United ceo oskar munoz is buying a Million Dollars worth of his companys stock. This after jamie dimon bought 25 million in his banks stock after the loss in february. There are a lot of numbers. Can you go way back. Slice it a lot of different ways. One of the slices we did among many we looked at a Million Dollars or more for ceos, not penny stocks, not these junky companies and you look back from 2003. About a 6 return in the first six months. But most of that return was in the first week. So you had to jump on it fast if you wanted to get that return. If you look at the situation like jpmorgan and jamie dimon he made 20 . He wasnt the only financial executive. Theres about 16 ceos did this. Its not unique. If you look beyond a Million Dollars we expanded it out to 250,000 or more. 800 transactions going back a decade. Its down a percent compared to the Million Dollar guys. The more they spend the better it seems to do and the final data point if you look at the real big spenders the guys that bought a lot of stock in companies that they owned at least 5 of. So they were the ceo and big owners. Theres the data right there. Average excess return of 6 annually relative to stocks with a similar risk profile. How much of this is a symbolic value and the markets saying ill go with the ceo. How much is it the ceo having terrific timing Nuclear Program is all legal. They kind of have a sense if nothing else of the business arc and the company. You would assume the ceo of a Company Knows more about that company than the rest of us. I think the pop based on the symbolism thats that first week. 3. 5 in a week but 2. 9 in a month. Then the six month numbers, the annualized number thats clearly timing, knowing how the company will do Going Forward. Look at kent lewis, bank of america back in 08, 09 he bought a lot of money, doubled it, almost tripled it because he got it at the market loss. Im surprised to think that ceos are good in a way at either, you know, knowing when the price is too low. I know it seems crazy because companies themselves dont show all the same kinds of trends. Thats true. I would say that people buy stocks for one reason. They sell for many, many Different Reasons. But they buy for one. They see real value. Their time frame might be much different. Their dollar amount might be different. I use that as a gauge. I dont worry about the sells as i get excited with the buys. Generally speaking when they buy its after it has dipped for a while. So they are saying this is the bottom and i want to put in real money not just compensation income i was guesting paid by the company to do. Now they hit the bottom we give them a term too. A little bit of celebrity power. Thank you. Time now for cnbc news update. Reporter heres whats happening. At least 11 people were killed and dozens wounded in a car bomb explosion in the predominantly shiite muslim district in eastern baghdad. The blast set fire to five other vehicles on a busy commercial street during the evening rush hour. Its the third bomb attack in four days in the city. Hundreds of people rallied in raleigh to support a controversial North Carolina law that limits workplace protection for lesbian, gay, transgender and bisexual people and restricts which bathrooms they can use. Hundreds of advocates and parents who support people with a form of muscular dystrophy for a drug that treats dochenne muscular dystrophy. One year ago today streets in baltimore turned violent. 1,000 people gathered for a march on city hall which turned violent as darkness fell. Thats the cnbc news update. Back to you. Thank you so much. Well look at whether the odds are increasing for a brokered Republican Convention now that ted cruz and john kasich appear to be teaming up to stop donald trump from winning. And later motley crues nikki sixx getting youtube to pay for showing their videos. Hes lobbying president obama to help out. Hell join us later on this closing bell. At pg e, we believe solar should be accessible to everyone. Our partnership with habitat for humanity allows us to provide the benefits of solar power to the types of customers who need it most. Pg e provided all of the homes here with solar panels. The solar savings can mean a lot, especially for lowincome families. With the savings that i am getting from the solar panels, its going to help me to have a Better Future for my children. To learn how you can save energy and money with solar, go to pge. Com solar. Together, were building a better california. Time now for your rapid recap. Stocks today modestly lower across the board but closed well off the lows. At one point the dow was down 150 points. Closed down about 26 as investors turned cautious ahead of a huge week of earnings and Global Central Bank decisions. Oil the real loser. Fell 2. 5 settled under 43 a barrel for wti on report Oil Inventory surged last week. Charter communications proposed acquisition of Time Warner Cable approved by the Justice Department. The chair is recommending approval from the sec. The approval comes with conditions. Those stocks were up today. They cant impose prices and data cap. Gains of 4 for both charter and time warner opinion todays news from the campaign trail is gop president ial candidates ted cruz and john kasich are teaming up to make sure frontrunner donald trump doesnt win the nomination. Cruz is going focus on indiana, kasich on oregon and new mexico. Heres what they all had to say about the apparent deal today. After discussions with the Kasich Campaign we made a decision about allocating resources. We decided to allocate our time, energy and resources on indiana. John kasich decided to allocate elsewhere. Is that matter of resources. We are running a National Campaign and we want to apply our resource where we think they can be used most effectively and its designed to stop Hillary Clinton from becoming you collr stock market they put you in jail. But in politics because its a corrupt enterprise, in politics youre allowed to colluded. Actually i was happy because it shows how weak they are. It shows how pathetic they are. All right. Joining us now is Kathy Lynn Taylor a republican strategist. Along with Robin Winston democratic strategist and former chairman of the indiana democratic party. Welcome guys. Kathy, is there a point here . Is it collusion . Is it resources . Will it work . Most importantly i dont think it will work. Look this is a marriage of convenience and we know those are not usually the best marriages. Ive said all along this campaign thus far that you cant win by being against someone else. You need to win by being for something. Were in a situation where america is angry on both sides of the aisle. Elm are frustrated. Weve had seven years absent of really successful job policy or National Security policy and people are looking for a message and those who are giving the strongest message are doing the best thus far and the only person doing that with a very clear message like him or not is donald trump. What would you call this, robin . I would call it craziness. Here in indiana you got people who already voted. 46,000 republican votes have already been cast. Another 15,000 are out there right now with people absentee ballots in their homes. 15 of a vote in primary is done by people mailing in. 46,000 people have already voted. What do they do . Go back i made a mistake. We dont allow that in indiana. That leaves people out in left field. Just to state the obvious, though, it just highlights the amount of rancor in the Republican Party and essential the Party Faithful may go to any lengths to block donald trump by any means. We saw a little bit of this with kasich and rubio earlier in the race. That was not surprising that rubio was deferring to kasich in his home state of ohio. In recent memory you have not seen one candidate secede one territory to another. Ted cruz isnt somebody who has a reputation for playing nicely with others. Youre exactly right. This is only going to divide the gop for a longer time rather than bringing us together. The best thing the gop can do sue night around a candidate and start to concussion ku to focus clinton. Look this is like a football game, right. A great leader is somebody who inspires people to a vision and can get them to fulfill that vision. Donald trump has had a great kick off. Hes brought in a special team, Paul Manafort hasnt he has to get to the touchdown. I see what manafort is trying to do, trump gets it, this is a little bit of an act and now hell go more centrist. Im curious. Do you think your party could a less coalesce trump. P at the end of the day most americans want the same thing, we want jobs. We want a secure border. We want a secure future for children. We want the best education to help them get there. I absolutely think the party n coucan coalesce around a candidate. Will it took like the way the gop did a year ago . It may look and feel very different. I think unity is on the horizon. I really believe that. This is our chance to seize the day and really come forward with a message that speaks to people and speaks to women. What do you think, robin toothpaste is out of the tube. I dont know how you get it back in there. Theres ads by ted cruz saying stop donald trump. We have ads with people saying we cant have donald trump as president. We had a contentious race between barack obama and Hillary Clinton and they made up and we won in 2008. This kind of rancor benefits us. Its great. Thank you both for joining us. Robin winston and Kathy Lynn Taylor. Well see how the coalition turns out. Golden state warriors have to battle for the nba championship without steph curry. The basketball star spring his mcl in last nights playoff game. What the injury means for the team and curry sponsors. Tough fall. Nikki sixx joins us live to discuss why hes calling on president obama to take on youtube. There he is. Closing bell will be right back. We were born 100 years ago into a new american century. Born with a hunger to fly and a passion to build something better. And what an amazing time its been, decade after decade of innovation, inspiration and wonder. So, we say thank you america for a century of trust, for the privilege of flying higher and higher, together. Welcome back. Rock star nikki sixx is taking on youtube. The motley crue bassist are calling on youtube for unfairly paying artist and asking president obama to issue an executive order to close a loophole to allow pay to be possible. Nikki sixx welcome back. Good to see you. Thank you for joining us. How are you doing . Lets start with what youre not getting from youtube. Well, you know, first of all i wanted to be transparent, 6 00 a. M. Has an album coming out on friday. We have tour. Were using the publicity thats happening behind that as a way to talk about issues that are going on. One of the issues thats happening is spotify and apple has figured out a way to pay artists more than youtube is. They are paying us sixth of what those other companies pay. Our take on it is is really an investment in the future of music. We fight if artists can survive by making music, putting their music up, i love youtube, i use google all the time. Make it a fair pay Playing Field so artist kansas survive in the future. If we cant make music and make money what do we do. So youre saying youtube pays you about a sixth of what spotify and apple do. Spot if i and apple are streaming your music. Are you talk about videos here . The number one use for youtube is music. Streaming music. And when they are putting advertising in front of those videos or even streaming music and they are paying a percentage of what the other companies are paying, its not fair to the artist. Now at no point do we want the fans to be punished. We dont want them to have to be punished for this. We want actually youtube and google who owns youtube to do the right thing. Their motto used to be dont evil. They recently changed it do the right in this. Were saying dont be evil, do the right thing, take care of music, all music and all how much music in the future. I cant really speak to that. Its been a growing experience for all of us. You know the internet changed everything, and a lot of people will say that its destroyed music. Were not here to talk about that. Were here to talk about how to make it work. You know, we were talking internally this morning about how musicians and artists in many cases are innovating faster than these Large Companies are in terms of the distribution of their music. A lot of people selfdistribute and individual media as well. Im curious what do you think of some of the new service, title. Thats at top of mine because of beyonces lemon ade. Is that a model you see for your music. I cant speak about those models. Im not that familiar with them as i sit here right now. Im focusing in on this issue specifically. We use it all the time and ill tell you a short story. I have a friend whose son is in a band and his son is barely starting to make any money playing clubs and the next step is for him to release his music and the father said how are you going to make a living . Its a young boy. Ill just keep making music. How will i afford to take care of your family some day and keep making music. Thats all were talking about. Spotify and apple figured it out. There were growing pains but they figured it out. They were forced into the some cases. Reporter 500 billion, i think that they can build before we let you go what is it that youre calling on president obama to do here. How could an executive order help change the situation . Well there was a law passed in 1998 and that creates a safe harbor. Hat law was launched before youtube was even launched. So in a sense youtube is hiding behind this outdated law. If you remember in 1998 we pretty much are a dial up. So things have really changed significantly since then, and were just asking google and youtube to do the right thing and pay all artists what they deserve to be paid. Thanks for coming on. Really appreciate it. Nikki sixx, you can check out 6 00 a. M. s newest album goes on sale this friday and well see if youtube responds. Steph curry injured his knee. Word is curry will miss two weeks with a sprained mcl. What this will mean for the warriors playoff hopes and ratings. Tune into squawk on the street, sarah eisen has an interview with phil knight. Closing bell will be right back. A plan to fit your familys unique needs. Well listen. Well talk. Well plan. Baird. I could get used to this. Now you can, with the luxuriously transformed 2016 lexus es and es hybrid. What would help is simply being able to recognize a fair price. Thats never really been possible. But along comes a radically new way to buy a car, called truecar. Now it is. Truecar has pricing data on every make and model, so all you have to do is search for the car you want, there it is. Now youre an expert in less than a minute. This is how car buying was always meant to be. This is truecar. Welcome back to closing bell. A news alert on nye nearing National Resources. Reporting earnings better than expected on the bottom line, 64 cents loss versus an estimate of 78 cents loss. 685 million as the oil producer continues to grapple with the dramatic decline in oil prices. In the press release the company pointing out its average daily production did rise more than expected during the First Quarter. Pioneer National Resources has also registered production up 3 . Quick comment, guys, on moving the shares here . Well, i think its going to depend on what the other Companies Report this week to see how the whole group responds. The stock was down today ahead of this report. Theyll be ugly, we know that already, though. Two quick notes on that. This, of course, was the mother fraccer as per David Einhorn last year. The other thing, though, this 50 hedge, very interesting. A lot of companies have been hedging at prices that they wouldnt have dreamed of a year ago. But they have to lock something in for fear it gets much worse. And pioneering shares up 3 digesting all of that. Fallback is a trademark, on behalf of the star steph curry. The Golden State Warrior point ga guard sprained his knee last night. Hell be out as much as two weeks. A step back for athletes sponsored by underarmor. New England Patriots tom brady suspension reinstated today. Lets bring in patrick for more. Just specifically, with regard to steph curry, how much is at stake here, patrick . Kelly, i think its going to be real interesting to see what happens with underarmor. They had a tremendous First Quarter report, where sales were up 64 over last year. I think those are continuing to grow. But steph curry is a walking commercial. And if hes not able to play deep into these playoffs and the warriors happen to get eliminated sooner than anticipated, youll not see the constant competitive commercial, and it could affect their sales in quarter 2 and 3. He was mentioned multiple times on their last earnings call. You know, they joked 30 are growth was homage to his numbers. Is he enough of a name now that even if he doesnt make it through this finals, at least the way that he did last year, and he was mvp last year, isnt he established enough that theres less a risk . He certainly is established. Underarmor has made tremendous strides. Kelly, theyre estimating 5 billion in revenue this year. A long way from the 30 billion in revenues for nike. Youll seeincrease, but it just wont be as rapid. What about the tv ratings, patrick, too . Thats going to be up and down. Its going to be compelling theater one way or the other. If hes out, people are going to watch to see if the warriors can compete. If he comes back in two weeks to face the spurs, people want to see if he can play at his usual level. So i think the ratings will be just firn. Patrick, thanks for joining us. We will see. We wish him the very best. Some of the highlights right after this. Why pause to take a pill . 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Call Liberty Mutual for a free quote today at see Car Insurance in a whole new light. Liberty mutual insurance. Welcome back. I sat down earlier with howard marks, cochairman of Oak Tree Capital for his insights into todays market. The ability to issue ipos has been, number one, uncertain, and number two, kind of onagain offagain. So i think thats really whats behind it. Most entrepreneurs, if their company has been successful, if its reached a high potential valuation, and if they can be confident that the market would be there when they went to list, i think they would do so. Marks weighed in on theic factor for companies. You should look for things that people think are unseemly, or unacceptable, or improper. Thats the way they talked about high yield bonds back in 1978 when i started. The ick factor. They called them junk. Any asset that has a negative nickname might be underpriced. Anything that has a positive nickname that is on what i call the pedestal of popularity, youre unlikely to get a bargain. Catch the full interview tomorrow up on cnbc pro. Junk the high yield. Youve got a winner, stephanie. Its all in the lexicon. All in the jargon. Thats right. Ick sounds good to me. It comes up in the valient conversation, too. Being a contrarian has a way of paying off. You just have to have a catalyst in the medium term. Not near term, but medium term. Well keep an eye out for others in this market. Thank you for joining us on the closing bell today. That does it for the show. Fast money begins right now. Here we go. Fast money does start right now. Overlooking new york citys sometimes square, im melissa lee. Tonight on fast, dont look now, but rates around the world are rising. That could be, get this, a good thing for stocks. Well explain. Plus, one group of commodities are going completely wild. And its not oil or gold. The commodity dennis will tell you about, and whether theyre worth a buy. Underarmour star steph curry is out for two weeks. Moments of truth. Huge earnings with a number of Big Companies with low expectations. Apple, exxon, chipotle and twitter. The common theme here, low