Transcripts For CNBC Closing Bell 20160506

And so cold. Meanwhile jeff bezos is at amazon selling 7 million worth of his shares. That stock has reached a 3 trillion market kapp. Were going to have a stock brawl on what to do with amazon coming up. Everybody loves to debate amazon. Then theres the jobs report coming in this morning coming in below expectations. Does this guarantee a summer without a rate hike. Thats also coming up. But lets start, though, with the nasdaq on pace for its first threeweek losing streak since midjanuary. Bertha coombs running down some of the biggest losers for us, bertha. One of the biggest losers is apple as well as nasdaq has come off the lows. Take a look at apple trading low. Weve gotten a bit of a lift this afternoon as we receive a little bit of buying come in on facebook, amazon, and netflix. The usual fang names have been Holding Things up, but that move on apple, down for three weeks in a row, is really part of what is causing that downward plunge on the nasdaq. But a small cap here today really helping things out. Yelp amove the stocks left for dead. Its seen a huge move after earnings and sales topped expectations. A real relief rally here. The stock is down nearly 50 from its recent highs. Biotechs are the weeks worst performing sector, down nearly 5 for the week. Weve had a lot of disappointment and today the big drag is coming from endopharma. Take a look at this chart down off the cliff, sinking to a sevenyear low after cutting its year forecast by about 23 , talking about price and pressure. Its oolz also weighed on others. One analyst at ma zoo low calling the stock toxic. They say the surprise was really just that magnitude of the outlook cut real estaather than itself. Kelly . The specialty names especially. Bertha, thank you. The slowest growth in job creation in seven months. Steve liesman has more. This was supposed to be the reliable indicator. If this is reliable, this is a big disappointment, right . I dont know about that, kelly. Reliable doesnt mean perfect, but were getting different takes on the jobs report from one fed member and the market. I want to go through this. Three prominent wall street firms changing their tunes for when the fed will move operates. Theyre all changing their forecast for the next rate height from june to september. Barclays says we now expect one hike in 2016. That is in september. We believe it will take longer for policy makers to accumulate it. But new york fed president bill dudley in a New York Times interview release this afternoon said while the report was, quote, a touch softer, he was not putting much weight on it. Said it was still reasonable and hiked twice this year. Heres whats going on. You know, its within the margin of error more or less. Ice softer than the market expected. Unemployment rate unchanged at 5 . Labor force partition rate ticking down after really coming up for several months in a row here, but the bottom two are actually pretty good. Average hours worked and wages up. That puts more money in the consumers pocket. Heres the deal. Theyre grueling out a hike. A jobs rebound together with evidence of a bounceback in Second Quarter growth could, in my opinion, put a rate hike back on the summertime picnic table, bill. Steve, im also wondering, those are the two most sensitive facts. The fact of the pace of it. Remember they told you it does mean something psychologically to see a 200 round number to see that condition. That moves against them but the wage number which is probably the most important, that missing piece in the outlook moving in the right direction. I think people have to put this in perspective. There are no economists who think that the economy should be creating 200,000plus jobs nchl general it should be closer to 200,000. Its a stable Unemployment Rate which is a job growth number that marches demographic or population growth. Thats what it should be. The idea that its been 200 doesnt make that right. Doesnt make that the only healthy number out there. I think 160 next month, kelly, if we come back and this thing is revised up to 180, would that mean it would change your opinion . Its within the range. If you were down 100 and a quarter and you did it a few months in a row, i would be crazy about it. It takes more than one to make a trend, steve. Right. Good reminder. Well see. Thats our steve liesman. All right. Lets get to our closing bell exchange. Joining us stevery sciutto, so is keith bliss from kit tonen company and Rick Santelli is in company. Steve youre the resident. Your numbers werent particularly high, were they . No. I do think theres this disconnect between the employment numbers and the confluence of other economic numbers that roll into the gdp numbers and im leaping more toward those numbers. I think the fed is off base in this regard. Im surprised. Its a tick up. From the market data and the price action, its going to be weaker heading into the summer. Youve got seasonal factors at play, technical factors that are lining up that are counter to a market going up. Again, ive been beating this drum for a whieshlg even through the strong period in april that i see the path of least resistance at least as we trend through may and june going down as oppose goingd up. Were starting to see that in some of the price action. Eric, what are you going to do with this market then . You know, the trend lately has been to get back into those defensive stocks again dwrouchlt want to stay with that or go for growth here . Those defensive stocks are pretty defensive at this point. Right now youve god got middling growth and Profit Margins very high. We think u. S. Equities will do okay but we think european equities with bar these lower and emerging Market Equities that are much more attractively priced probably a better place to put your money than bet oong the u. S. Certainly until we get more clarity on the back half of this year and thats going to be a while. Rick, anything you can do to put a spring in our steps here . Pretty its a troubling set of data and analysis. You know, i never look at up or down as putting spring or taking spring from anybodys step. Down here, theres a red side of the card for selling, blue side of the card for buying. You can make money either kwachl it doesnt have to be a oneway street. To me its all about the dollar. The dollar has been getting trounced. Monday it had the lowest close. Weve talked about this since january of 2015 and it stabilized. While thats going on and maybe its just the low gist ticks of the market going through the distribution phase, we see theres even less horse power to the notion the feds going to be tightening. You know, it was two times. You know, we talked yesterday. Second quarter, first look is the 29th of july, 27th is the meeting. So we were talking about it yesterday. It seems like the big firms took july off the table. The election is a week after the meeting. So, yes, its going to be september, december. My guess is maybe only december, but the point is if thats true, the dollar should take another leg down and if that rejiggers all of the Foreign Exchange relative value arguments, then the best place to invest may not be so much europe and our countries. Even spain in the southern part that are starting to look a little bit better, but the Foreign Exchange side with the biggest economy, whether its france or germany is going to take a toll on experts. This week aside, to see if the dollar index can hold that 93 mark which is very significant. Which brings me to you, keith. Clearly youre watching the dollar, i would imagine. But what it does to oil and things, what impact do you think that has on equities. Are we going to see this synergy that occurred between energy and stocks come back here again, do you think, at some point . Its an excellent point to examine right now. Im not sure were going to. Weve seen the uncoupling over the last couple of weeks. I think a lot of that has to do with how we trend. Weve gotten through seasonal patterns. People have looked elsewhere for what the global picture looks like. There is some valuation concern. When i talk to clients. Weve had the foreign looking eps kind of disengage from where stocks have been trading right now. And, of course, you factor in the Global Growth concerns. A lot of that, rick is right, is going to have to do with how the dollar trades in the summer and how it impacts on the rest of equi equities. Steve, before we let you go, a quick comment on the wage trends. Are they moving in the right direction even gradually or are you still just not seeing enough oomph there . When you take out january, which has a lot to do with the minimum wage increase, thats really biased the entire year over year numbers. I think ricks comments before about the currency are the key thing thats going to drive markets and Monetary Policy Going Forward. I think the dollars going to continue to weaken on the back droch of u. S. Inflation being stuck around 1 and Global Deflation dominating their currencies. So i think thats the key issue to watch. The currency and the dollar will move lower. All right. Gee, this has been fun. Thank you, guys. My pleasure. Have a good weekend and happy mothers day to all of them. Was just thinking here, its amazing the way the market anticipates these things. We watched the dollar go from 100 to 93. This soggy payroll report lands in our laps. We mentioned it yesterday as if it anticipated yesterday. Its fascinating. The market always knows. Seems to. The market does. We have no idea. We have 52 minutes to go. So is todays decline of gadget stocks, fiit, gopro, and square a good buying opportunity for investors . Mike santoli has a special report on that. Up next, the update on the fire raging in alberta plus well speak with an analyst who says the barrel will drop back. Heal make his case. Keep it right here. Youre watching cnbc, first in business worldwide. Real is touching a ray. Amazing is moving like one. Real is making new friends. Amazing is getting this close. Real is an animal rescue. Amazing is over twentyseven thousand of them. There is only one place where real and amazing live. Seaworld. Real. Amazing welcome back. Keeping our eye on materials. Really, its a specialty pharma space. It took a leg down with the valeant issues. Several Different Things going on. I wonder why utilities will be lower if youre not expecting rates to rise here and, in fact, yields have gone down on the treasuries but yields are down. Maybe they bought the rumor and sold the news. Energy and financials, not a lot of leadership there. Lets check a couple of other movers. Teradata. Theyre replacing their ceo immediately. Theyre upgrading their stock to hold from sell citing what they say is this newfound sense of urgency at the company. Meantime Activision Blizzard rising. The visit owe gamemakers earnings trounced street estimates. It provided upbeat guidance for the current order of cal of duty black ops 3. Your favorite. I was going say the same to you. The update on the wildfire in alberta, canada. Deirdre, this one looks like its getting worse. Reporter that right to. Give you an idea how big this fire has become and how quickly it has spread, it went from 25,000 acres to 250,000 acres within just 24 hours. It is now bigger than the entire city of chicago and it does continue to grow. If it does continue grow even further, canadian Officials Say they may have to ask the u. S. For help. With no rain expected until next week, its becoming a real possibility, guys. This is all taking place, as we keep saying, in the center of canadas oil industry. This is a region that produce 2 Million Barrels of crude day. Estimates report that theyve procut that in half now. Canadas economy is already suffering from oil prices. Bank of montreal has come out and said the wildfire, the damage from the produced output could grind the canadian economy to a halt. Guys, back over to you. Thats incredible. I certainly hope thats not the case. By the way, dear degreirdre, wh this . The fire has been moving south. We went out there. We wanted to go to ft. Mcmurray but the fire has been pushing us back. Theres nothing past ft. Mcmurray. We were talking to people on the ground. Those who were pushed north because the highway was cut off completely they went to the sands. They call it a bridge to nowhere. Theyve been stranded for a few days. Theyve been airlifted and back down to edmonton. But, again, ft. Mcmurray itself is a city and the towns around it less populated but youre seeing evacuations around it. Deirdredeirdre, has any of t been destroyed sits . I wonder if any can get back online after they get this under control. Theres no employees to man the operation because theyve been evacuated as well. The flames earlier this morning, it was report theyd with were just mile ace bay from two oil sands sites from ft. Mcmurray. All it takes is changing winds to push the fires further to affect some of the facilities and make the damage even worse than it already has been. So right now the actual facilities, oil sands facilities not affected but certainly the workers are leaving the area. All right, deirdre. Thank you. He thinks the wildfires are giving them shortterm strength. You think we could see 35 again by the end of the year, dont you . Bill, we certainly do. We had a seasonal rally. Last time we spoke to you it was january and we were talking an rally in march and april. Weve had that. The fundamentals have not changed that much when it was around 30. Theres a lot being made about the production in the United States. Of course, were losing barrels out in canada right now. But as we get past driving season, were going to have once again a glut of oil and were losing places to fill storage tanks around the world and believe it or not, were starting to import oil here again and i think this fall were going have a big supply problem on our hands once again. Before we get to that, james, to your point about whats happening in canada, bp canada has just declared a reduction in available western canadian select crude among other grades and thats reporting to roit ters which cites true trading sources. So bp is saying delivery of oil would be affected during the month of may. So focusing on the direct impact of this, james, what do you anticipate it would be . You know, today crude oil is trading 2 under its previous high over the last week or so. We hit 47, 47. 50 recently. Were down 2 below that in the summer months. If, in fact, we thought this was going to be a longterm fundamental change, we would be trading. The fact that were down, tells us that the seasonal rally and a play that a lot of invests took part in is just about running its course. Were probably in the third period right now of this market rally. You know, for me, i wonder why were not at 35 a barrel now. I get the whole concept of the seasonal rally and all that, but were in unusual times if not unique times right now with the glut of oil that weve seen with the pre tre men does overproduction thats gone on around the world. We still have tankers, im told, out in the ocean waiting to find some place to drop off their oil. So why does the seasonal you were even making point that fundamentals maybe arent supporting this seasonal rally and well have this glut down the road. Theres a dichotomy there. Whats going on there . The market rally is practically every february through may, whether we have the largest supplies in history like we do right now or not. If, in fact, the fundamentals bode well for the market, it then moves into june and july. Bill, you nailed it. The supplies worldwide are enormous. The United States has supplies near 100year highs. Iranian and iraqi barrels are going to start coming onto the market, september, october, november, and were going have a glut of oil again and no one knows how low were going to be. Wed expect well be in the low 30s in the fourth quart ore thf year. Seasonal rallies are interesting how, in fact, they do take place. They did this year. We would be shorting oil over the next 30 days with both hands. James, thanks for joining us. My pleasure. James cordier from options. Com. Did you see buzz aldrin is here. And her sister. Now i understand why he would go with buzz. 30 minutes left in the trading session here. The dow was down 80 points. Its been up 80 points. Were up 73 as we head toward the close. Coming up, amazon founder jeff bezos selling more than a million share os testify company this week. Well talk to amazon watchers to see if Mainstream Investors should be following suit. And up next, gadget stocks. Well talk about whether investors should be buying them at these levels. 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[ soft music ] when you find something you love, you can never get enough of it. Change the way you experience tv with xfinity x1. Welcome back. 35 minutes left. Tough week. Thats a weekly chart for the index. You can see down roughly 3 to 4 . They keep getting hammered. Yep. Gadget stocks like gopro, fitbit and square have been getting socked. Mike santoli takes a look at these stocks and the Common Threads we should all be wary of. Three Different Companies and three types of products. There are some things that unify these three companies an not that the stocks are having a hard time of it. Here are common themes about these relatively young companies. First of all, they had a hot product in a buzzing category. Wall street saw them in rare direct play on a fast growing area. Whether that be the motion cameras or gopro. Obviously fitness bands and fitbit, and square while its not a device its a better mouse trap for payments of smaller businesses. Theyve all struggled with finding a second app. With finding a product that was as successful. It raise as question of whether the High Percentage of the likely Customer Base had already bought into the first gen racing and of course were talking about hardware for fitbit and gopro. Very punishing and product and development cycles. Wall street not satisfied with the highs on these stocks. Also bigger competitors could steal some thunder. And by the way, all these companies had these critiques very loudly out there. Its not like they were blind sided where the Big Companies could absorb or compete with these guys. As you look at the stocks, are they cheap yet. They trade at modest valuations relative to revenues and even the cash on the books. All have 12 to 27 of their market cap is basically cash they have in the bank. They say we dont see these as Growth Companies anymore. The problem is Value Investors have not come back. I would point to some companies of the past that remind me of some of these. This isnt necessarily destiny for them. But pal. You had the palm pilot that was ahead of its time and the flip camera. That was eventuallying a soushed by Cisco Systems and paum was brought later on by hp. So these things. The 3d printers, you can go down the list. When its first out, people ask the question, is that all youve got. It makes me think of drop cam. Thats a huge hit and whats happening at google. Its almost like for these devices, the best thing that happens is they get bought. In that case, its not clear whether thats a platform for them to go to that next level or not. Its not. Any one of these could theoretically have a comeback. They can make another gogo of it. But to that point, kelly. Tivo is a great example. This was a 60 stock 15 yea 15 ago. Its 10 right now. I cant believe theyre keeping the name tivo. I said tivo the verb will outlast tivo the company. When you combine rovi and tivo, what are you going to call it. How they became public with these onetrick ponies. Fitbit is operating. Theyre a true business. Theyre trying to diversify. Gopro had a right to try to go public. It didnt have a reason to be trading at 90 a share. We should add, by the way, a lot of hopes about gadgets as a service. It was were going to sell the device. There will be content, software, all of that, ecosystem. Somethings always on it. By the way, square obviously, its the different one in here. Payments, no doubt about it. But even they are trying to give you working capital. Right. Right . Its not just about the little card reader device. All right. Thanks, mike. Mike santoli. See you next hour. Time for a cnbc update. Lets get back to sue herera. Heres whats happening at this hour. House Speaker Paul Ryan has invited donald trump to meet with Republican House leaders on thursday. Ryans office put out a statement saying they would begin a discussion about republican ideas that could win the republican election. The suspect in the three fatal d. C. Shootings is now in custody. 62yearold eu is lalio tordil is in custody. Scientists believes a new test for zika could be used to test the device sooner. Yellow would indicate it is free of the virus. And new england Quarterback Tom Brady releasing a limited edition of his nutrition manu uall online. Including avocado ice kreechlt its sold out. He has the weirdest diet on the planet. Its a strict diet. To me, to have tom brady and a cookbook, its an oxymoron. Were sharing carrot cake. By the very talented ian. Whos going to eat tom bradys diet. Other personal chefs to get hired for people who want to be like brady. Theres the business a. There you go. And the 200 bucks. Thats a lot. Crazy. Anyway, ill see you next hour. Thank you. You ate more than half of that. I know. Now im coming on your side. Holding onto modest gains. We should point out, nasdaq was down enough to be in correction territory from its alltime highs. A leading trader will tell us what hes watching on this final day a when we come back. And on this jobs friday our Mary Thompson has a special report on where the jobs are. Shes at Environmental Firm in rhode island with a great story today. Stay tuned. Im here at the Td Ameritrade trader offices. Steve, other than making me move stuff, what are you working on . Let me show you. Okay. Our thinkorswim Trading Platform aggregates all the options data you need in one place and lets you visualize that information for any options series. Okay, cool. Hang on a second. You can even see the anticipated range of a stock expecting earnings. Impressive. Whats up, tim. Td ameritrade. Welcome back. With less than half an hour go on the floor, im here on the floor. Are you surprised . Even the tenyear yield is starting to creep up. Were giving free money. The fact that everyone is pushing out their rate hike forecasts . Its a place to put it. Its continuing to be the case. Were seeing that today. Im surprised with the rally at the end of the week with the outflows, you know, from the money flows. Its a good sign. We needed it. The nasdaq really stabilized here at some point. It looked like it was looking ugly. The earning season is kind of coming to an end. Were not so focused on oil as we were. That brings up questions about the oil sectors. Does any of that change now . Youre going to be very selective. You see the stocks performing well. Its quick. Its a rotation. You earn for two or three days and youre out. That goes back to the trading environmental. Theyll do pretty well in this environment. Its going slow down as we get to summer. To your point, ily will be some select stocks and rotations. All right. Three days out. Its a crazy way to make a living. It certainly is, but it can be done. Thanks for joining us, matt cheslock. He doubts when we get to summertime. Tell him. He cant hear me. Not the best jobs report but there is good news on the employment front with fast growing sectors. Cnbcs mary tom sn is here with the may edition of where the jobs are. Mary . Reporter hey, there, bill. Behind me a firm called arcadis is doing soil remediation to make it fit for future development. Work like this is plentiful around the country and so, too, is the demand for engineers that can do it. Over 150 years old, the Global Engineers and Consulting Firm ar kay disis finding lots of old and making it new again. Cleaning up sites and making sure others follow the regulations is a big business. This is an environmental recruiting firm. He says jern racingal turnover means these workers are in high demand. If i could get some genetic material and shoot it into individuals, i would be a very wealthy man. Speaking of wealth this median wage nr these workers, over 88,000, a price tag that gets bigger with experience, added degrees and professional licenses. The number of job openings is getting bigger too. Theys a higher than average vieshtal and engineering jobs by 2024. Arcadis is adding more. This year it plans to add more than 400 scientists and engineers and expects to increase their payroll by 15 to 20 in the next five years. Back to you. Thanks, mary. Not that anybody would ask i long thought engineers wou sing be a great career. The infrastructure needs are enormous. And you cant learn that overnight. No, you cannot. Great report. Mary thomson, thanks very much. I hope youre not thinking of a career change. Too late now. 20 minutes to go in the session. The dow is up 59 points. The transports are doing okay today. Theyre up 64. The big, the small caps are up three. My father was an engineer, by the way. Really. Yes. I failed him. What kind. Aerospace. Wow. Yeah. Jeff bezos, hes selling a record amount of stock this week. He talks about whether it means anything and whether you can follow his lead. And in case you missed it, spacex had another successful launch last night that will sit with famed apollo astronaut buzz what did you say his name is . Edwin eugene . Edwin eugene aldrin who will join kelly on closing bell. Stay tuned for that. Everybody knows that Business Today is built on data. The thing is, most businesses arent getting the most out of it. The ibm cloud is uniquely designed for all kinds of data. Like data from the Weather Company for 2. 2 billion locations. Or billions of healthrelated data points. Even social sentiment in real time from hundreds of millions of people. Its all in the ibm cloud. If you combine that with the data your business already has then things get interesting. So right now were working with a retailer to blend social and Inventory Data to help predict demand. We can help a hotel chain match weather and local event data so they can adjust room prices from minute to minute. And another company we work with can apply analytics to sensor data to save millions in energy cost. Today, every business runs on data. Thats exactly why we built the ibm cloud. Years ago, i was starring in a allergic to other cats. Cat opening slash closing night it hit me hats for cats. Everyone said i was crazy. When i went online. I got my domain, catswithhats. Com from godaddy. Now these things are feelyin outta here. Got a crazy idea you think you can turn into a success . We know you can and weve got a domain for you. Go you. Godaddy. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive turns out amazons ceo bezos sold some of his holdings. He sold over a million shares of amazon. Thats a lot of money. It was reportedly predetermined. When we reached tout amazon, they declined comment further. It comes out as the top venture capitalist conference. Listen to this. When you think about amazon jourks to think about the long term secular favor. The first thing is people want to buy things immediately. Its going to be at least worth a trillion dollars in ten years. Ten times in ten years. Lets bring in robert luna who is playing the part of the bull in this conversation. Hes from surevest welgt management. Jeff is our bear. Good to see you both. Robert, are you that bullish on amazon . I believe this is the best longterm story. This is company thats basically dominating its marketplace. We saw what its done with sports authority, radioshack, up next, jcpenney and those companies. Its a longtime share that everybody has to own right now. Jack, do you feel differently . Yeah. When the stock was not up 30 in the last 13 months, it might have been a more reasonable argument, but i think if you look at this and you the ceo, jeff bezos himself said well swing. I dont think a tenbagger is appropriate. Theyve gotten away for 20 years without being profitable and now theirre profitable and their profitability, i think, their operating margins are around 4 . Thats less than half of the industry average. To the analyst who made this call at the sohn conference, jack, if youre investing long term, five years, even ten years down the road, does it matter that its been up that much in the last 12 months . Absolutely because i think youre going to reach a point where, you know, the costs are not the revenue the costs are going to pick up with the revenue. And i really think that people are, first of all, overstating their cloud ability. I this they youve seen already that apple has taken their platform away and gone toward google. You receive that. Spotify has gone off the amazon platform and microsoft is taking a lot of al i think youve had four or five other deals where theyve migrated away from Amazon Web Services toward the more costeffective options. And then on the retail side, retail is not a great investment. I do think its not reached a maturity point but the type of value that people are describing, youre assuming 25 , 30 run rate at high margins. Yeah. I was just going to say, robert, you know, we have seen such a halo effect around the stock and around jeff bezos lately. We know what happened in the past when apple was the darling and are you confident that sentiment can keep improving at least for now and long term they can keep executing to meet these High Expectations . Yeah. I believe so, kelly, because amazon is the company, youve got to remember thats still growing active users by 20 and theyre starting to gain traction internationally. This company is growing 3 compounded on an annual rate. If you look at the third party rate, thats growing at 43 . Like i said, eliminating competition is not inexpensive. I think the idea that this is a company not profitable and not expensive is really a specious argument. It does have 4 margins right now but theyre not going to continue to spend like theyre spending forever. When you see a raise in price, theyre getting traction. I think theres a long way to go on the stock. I wouldnt be surprised if you see a price tag on the stock. No time, but i just am curious for both of you. Jack, what prices do you need to get back down to get you back in. I would say in the 500s. The expectations that theyre going to lower price raise price is going to absolutely kill the entire volume argument. You cant have price and volume growth. Got it. Robert. What number would give you a nose bleed . I think in the short term i wouldnt be surprise. By the end of 20 2017 is a thousand a share. Good to see you both. Thank you. Robert luna and jack mohr for joining us. 300 million to sell is the market on closed orders. With the dow up 53 points, weve got 11 minutes left in the trading session here. And youd almost forget given the weather around here tomorrow is the 142nd running of the Kentucky Derby. Its also the focus of him and well see if he can rival the greatest two minutes in sports. 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. About eight minutes left. Joining us independent k consultant david darst. Its the 142nd running of the Kentucky Derby and we want everybody in alberta, canada, know were thinking of them. Many displaced their homes. Also on mothers day, every one of your viewer, if moms say dont get me anything, they do not mean it. Get out there and get somebody. Derby, d is the dollar. Thats going to be an important determine ant of earnings and the commodity prices. Its down 4. 7 thus far this year. The d. E. , the e is earnings. Thats more critical than anything else. Earnings, how are they going to come through and the estimate is to be up between 11 and 16 this year meaning the bottom of the cycle now. So that might be a positive for the market, okay . Okay. R is the recovery in china. This weeks economy in china which hit the newstands has a debt bond. So all of your viewers should have a look at the viewer situation there. D der. And the b, thai obama and them have asked them and y is yell en. Janet yellen. The feds policy. Keep interesting rates slowly rising and rising for good reasons. Thats for the market. Was going to ask you for your horse picks tomorrow. I have no idea whos running. Ive got my money on kelly evans and bill griffeth. Enough fishing for compliments. Thank you. Thank you. Thank you all. Happy mothers day, everybody. And to you. Well come back and wrap things up. After the bell, facebook wildly popular. The consumers, the social media giant is in trouble. A lawsuit claims fab photo tagging violates privacy. Youre watching cnbc, first in business worldwide. Trugreen presents the yardleys. Hello . oh, pizza is here oh yeah, come on in [claps] woah lose the sneakers pal. Kind of a thing. Spring is on. Start your trugreen lawn plan today. Trugreen. Live life outside. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Ahhh. Coming up on the twominute mark. Bob pisani joining me. We finish a quarter percent down after all that. All of this up and down, up and down, up and down. It was a tough week for a lot of other sectors. This was a slow growth week. The big industrials and material names. Were going to look at the sectors in just a moment. Firsting oil, and how it did when we saw that decline and the spurt, as a matter of fact, with the inventory numbers coming out this week and for the week overall down 3 on oil. Now to those sectors. Lets see how they did for the week. The ten sectors inside the s p 500 index. The weakness is in energy industrials and materials. Theres your cyclicals, your slow growth story right there. Thats the problem. You can see some of the mixed week overall. Were just now fractionally on it. This is the week slow growth came back and bit us on the butt. What would you say the rate increase is . Down 5 . I dont think it goes down until the middle of 2017. We have removed the uncertainty of a fed rate hike in june at this point. You mentioned oil. The good thing about oil is were still right around that high level at 45. Its down a little bit, but its certainly tough to get over that. But its not fall ag part in nejdra mattic way at all. Of course t dollar volatility has been up and down a little bit this week. Steady overall. The jobs report. Have a good weekend. Going out with that gain of 70 points on the dow. The wnba ringing the closing bell here. The 20th anniversary. At the nasdaq its Genetic Technologies limited. Stay tuned. Buzz aldrin on the second hour of closing bell with kelly. Have a good weekend, kelly. Thank you, bill. Welcome to the closing bell. Im kelly evans. We got the jobs report at 8 30 this morning. Stocks were mostly negative but we went out with 789 points gain. About a third of 1 . Teen nasdaq which we mentioned really has been a laggard of late was able to add 19 points or about 0. 4 today. Still on your screen you can see the s p reporting their second straight week of losses. Coming up, were going to talk to astronaut buzz aldrin and space exploration, the 2016 election and more. We have mike san foley along with cnbc tribtder. For more guy adami joins us as well. Thanks for stopping by, guy, as well. Lets talk about the markets. We closed positive. E heard what matt cehslock talking about. Why was the tenyear yield up . Thats a good question. I think it does come down to coming into todays jobs number the market did put on that very defensive trade. So, you know, the treasury was down from 1. 93 to about 1. 97 in ten days so bonds were potentially overbought and pricing in even more of the slowdown story and the jobs number clearly a disappointment but nothing that really dushs the overall trend. Youve got the wage growth, so i think the market was able to get kind of a kick save because now were looking out september is when youre looking for the first fed rate hike and thats not really an oddson favorite. To me the vix flalg shows the market saying i dont see much of a catalyst thats going to disturb things too much. Evan, if we can take a step back. They finally raised Interest Rates for the first time in december. Whats it going to be a year before they do it again . What do you call that . Its interesting. Part of me wants to take the other side of this. When its almost when theres nobody on wall street thinking june is even on the table, you think about it. The wage growth was up. The consumer borrowing numbers. Those were up big. What if wage growth is very strong and is 200,000 jobs created. Im not saying there will be. What if its strong and theres only 100,000 . It seems to me like the most important one are wages are finally going up but at the same time if were at the end of a cyclical expansion, thats good too. Its interesting. I dont know how the bond market figures these things out. All i know is when all the analysts throw in the towel or when theyre all on one side of the boat, im going the other way. That makes a lot of sense except when you have Federal Reserve Decision Makers dont want to surprise the market. So its kind of a heisenberg thing. Guy adami, what do you think . What impact does that have. Even jpmorgan suggested it could be the tightening if you go back to the end of quantitative easing thats actually starting to slow the economy. Yeah. I think, you know, you said it before. Its going to be december and well see you again. I remember being with you back in december saying, ill tell you what. They raced here because they talked themselves into it and needed to do it. Youre going to come back and next december is the next time youre going to see a hike and i absolutely believe that. I understand what evan said and i get it, but i dont think theres any way the fed is going to raise it what were seeing now and both guys can speak to this, an earnings recession and a revenue recession. Theyre going to make that worse. By doing that the market will rally. This deflationary spiral that in some ways they created will only be exacerbated. Again, did they paint themselves in a box . Absolutely. They got a reprieve with the numbers in a lot of ways but theres no way they can hike. We can have a conversation if they should. Thats a different conversation. I dont think it happens in june or happens until the end of the year. One of the aspects im curious about and id love to sit in and talk be the fed policy makers is Something Like this. The fed takes the u. S. Economy as its mandate and yet decides to challenge its mind every time theres some international problem, you know, brexit or whatever it is. When does the fed go, you know what . Negative rates all over the world, thats a real problem. We should take a leadership role in determining Monetary Policy instead of getting caught in these currency wars. Isnt that what theyve done to some extent . If you look at the fact they did raise rates and every time they talk, you can kind of get the sense they are frustrated. They dont want to have to take into account whats happening but it fundamentally impacts the dollar if nothing else. All im saying is we seem to be caught in a vicious circle or cycle where negative Interest Rates kind of, you know, very slow motion currency evaluations take place and people dont think rates matter. Whats the Interest Rate . Being at half a percent or quarter to a half a percent on a relative basis, theyve gotten a little bit tighter. I do think they can stick here and not really have to answer your question as long as the core inflation measure they watch is below 2 . They still have the cover of core p. C. Has not reached 2 . Right. Thats why its so interesting to see those two pieces of data going in different ways. Looking at the sectors today, you know, what do you theres been a lot of different kinds of themes beneath the surface here, the weakness of health care and technology. The outperformance of anything with a dividend yield and the consumer kinds of stocks going into retail earnings season. Where does it feel . The unfortunate reality is the weakness in health care is going to continue. Youre going to get fits and starts but on the margins, health care is going to continue to be under the pressure because theyre under the magnifying glass of so many agencies, not the least of which is a political cycle that will continue in november. Evans had this right. The move in energy in a lot of ways has bailed out the broader market. It came just at the right time. Contrary to what i think. Its continuing to move higher. I this i these fires are helping the commodity. Its a horrible event but its helping the price action as well, but i think the Energy Market is bailing us out as well. Ill say this. Banks, look at the european banks, kelly. Ill keep going back to it. Crude oil has gone back to 25 or 45. The story against Deutsche Bank was the move down in the componented market. Look at what theyve done. Yes, rallied today but that stock has been under tremendous pressure for the last few weeks. Again, i think the european banks are telling the story. Whether or not theyre choosing to acknowledge it doesnt matter and the resilience is something to behold but there are clearly warning signs if you take a look below the surface. Can you see how gracious he is . I need all the compliments i can get. I do. Im soaking it all bit. What i do think is interesting, kelly, is just that just briefly. Ill be brief. Brief. Theres been this rotation, but really the s p in 20 months not going anywhere. Were basically flat. Flat since the start of the year. The one word i would urge all investors out there, be patient. You dont have to do something. You sound like larry robins. This is a larger trend here. Its down about 12 just over the past week. Ice sitting at lows not seen since 2014 and this as reports that tim cook is going for visits to china for a government meeting. Josh lipton has more. Hi, josh. Well, kelly. Thats right. Ceo tim cook now reportedly plans to visit beijing later this month to meet with highlevel government officials. This visit comes at a critical time for apple with the Chinese Government suddenly seeming to take a tougher line with the tech giant. Recently, for example, the Chinese Government shut down the companys online books and Film Services and already that market has become more challenged and q2 apple sales in Mainland China did slip due in part to Economic Growth and at least one wellknown investor is concerned. Carl icahn told them he sold his stop. That stock dropped more than 12 this year. More than 25 over the past 12 months. When i spoke to cook after that last earnings report, he told me that china is more stable than widely believed but a year ago you had the wind at your back there, he said. Now the wind is not blowing anymore. Now, giving the challenges in china, india has become a much more important opportunity for apple. Its market share there is small but growing quickly. The government tells me that the company is evaluating its request to open apple stores there. Guys, back to you. A lot going on with this one, josh. Thank you so much. You know, mike, last hour you were talking about the gadget stocks, the kind that has never really blossomed. What makes apple different fundamentally here . Obviously the scale that it reached. Not just the 600 million in market value but the fact it created whole categories and came to really dominate them. Those companies i talked about, fitbit, gopro, if they disappeared, you wouldnt necessarily notice that much. Thats a big difference. Plus they have a Massive Software business and Media Software business. But i think that the bottom line risk to any kind of Device Company is that the cycle just punishing. Its brutal. Thats why i think apple was never going get a, quote, fair market multiple because the market just didnt want to put a decent multiple on this much earnings when you are still somewhat hit driven, when you have to ride. It people who say apple is so cheap for get that it was cheap even at its highest share price. Its one of those things. What was it. 650, 750 billion. Youre just the numbers start to get really daunting. I know weve had this discussion. I wont call it the law of big numbers. Ill call it a big number. When companies its the base effect. But the base is too big. Thanks. When the base is too big, you just its hard for any company much less one. Iphone 6, iphone 7. He said last year we sold, you know, we had this huge upgrade cycle. Its just almost impossible to show the kind of growth on top of that. You know, to show growth at all on top of that really. Its like being a hedge fund that gets i think if you look at it in this context. At a certain point its extraordinarily difficult to move the needle, right . I think thats whats happening here. Here comes the hate mail and im going to enjoy reading it over the weekend. When i was in kid, high school sony was taking over the world. You could not turn around without bouncing into one of sonys products and now theyre basically irrelevant. Why . They made things that people wanted to buy. It was a cachet. They were cool. And lo and behold, other people made the same stuff. They lost that cool factor and it went into on livion. People say apple ecosystem, i get it. But at their core, they make things this people want to buy. And when you sort of lose the cachet of coolness and when price becomes a factor, which its starting to, this is what you have. Guy, here, that certainly could be the way it goes with apple like following the sony path which is still a Viable Company but no longer the leader. Some people think rca is a more disastrous one. But whats going on with the stock. This is pure relentless liquidation of name that was widely owned by a lot of potential investors. I this i thats a great question everybodys trying to get their arms around. You talked about it or maybe josh was talking about it. Its not like this is a recent phenomena. Heres a stock thats underperformed. Apples probably what, 25 , maybe a little more off its alltime high. Probably a little more than that now. You have to ask yourself why has it underperformed for whats close to 18 months or so and it goes back to what mike was just saying. The market doesnt kwablt to reward them the premium valuation because of the situation i think they find themselves in now. We have to go. All ill say, evan, is when you start buying apple you know, by the way, if the shares had a 6 in front of it or 7, id start getting interested. Guy, thank you. Wish your mom a happy mothers day, kel. Absolutely. Happy mothers day to your mom, my mom, all the moms out there. Stick around. Guy adami coming up with the fast money crew coming up at 5 00. We have our market flash with our seema modi. Whats going on, seema . Real Estate Investment firm colony is said to be closing in on a deal to acquire north starr asset management. This according to bloomberg. This actually following news last year that north star realty was looking to explore retail combination with the management. Were looking at the stock up better than 16 on this reported deal. Back over to you, kelly. All right. Seema, thank you so much. Up next, breaking news. A meeting set with likely gop president ial nominee donald trump and house Speaker Paul Ryan next week. This as president obama had sharp comments on the billionaire businessman. Well break it all down with mr. Larry kudlow next. Plus facebook facing a big lawsuit over facial recognition. You erie watchire watching cnb business worldwide. They found out whos been hacking into our network. Who . Guess. I dont know, some kids in a basement . You watch too many movies. Who . A Small Business in china. A business . They work nine to five. They take lunch hours. Like a job . Like a job. We tracked them. How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. Welcome back. The u. S. Labor Department Said we only brought in 160,000 jobs. Lets bring in larry kudlow for his reaction. Lets start things off thank you for joining us to the jobs report. The jobs report was mixed as you discussed. Look. Wages were better. Jobs were slower. I just i have a hunch that were going to see slower jobs Going Forward, kelly. As we talked before, i think business is in a mild recession, not yet the whole economy. I dont see that. But youve got falling business investment, falling profits, falling Profit Margins and falling industrial production. Since business creates jobs, i think youre going to see slower job creation in the future. Its not a catastrophe but the economy is in low gear. Its unusual, isnt it, larry . We had the rebound and collapse. Do you think we stay stuck in this mild recession or does it get worse . Well, thats a good question. This is a very peculiar cycle. Youve had a lot of antibusiness regulation passed on. The animal spirits havent been around for many different reasons. You know, the Financial System itself is still very clogged. So i think this cant go on forever, okay . I dont believe it can go on forever. Therefore i think the risk of recession is there. It bha 30 , 35 , but its definitely there. Look. The stockmarket look. I know weve got two stockmarket jockeys in there with mark and evan. Evan. But the stockmarket hasnt done anything in how long . A year . A year and a half . I mean profits have been flat to down for over two years. That tells you something. The economy is fundamentally not healthy. That leads us right into the next piece of discussion, larry, about what could help out here. Lets start with politics where house Speaker Paul Ryan is going to meet with donald trump next week. He said hes not ready to support trump who was on squawk box yesterday. Some of his comments about the economy, i should say, didnt sound like something youd hear from a republican candidate. The middle class many of them havent had an effective wage increase in 20 years, and some of them are making less money. Many of them are making less money now than they made 20 years ago. If we start raising rates ive always been a low Interest Rate person. If inflation starts coming in and we dont see any signs of that but if inflation starts coming in, thats a different story. Have to go up and slow things down. Right now im for low Interest Rates and i think we keep them low and we have to compete. I am the king of debt. I love debt. I love playing with it. Probably that last part caught the most attention. What are your thoughts here, circulary . Well, kelly. I dont know. For at least two years, three years, you heard me say i dont want the fed to raise Interest Rates. I dont like fed policy over the last ten years. But here we are. I think trump is actually right. You have no inflation, a soft economy. This is no time to be jacking up Interest Rates. He also made a good point, by the way. Financier, debt lover he is. Why not finance the entire treasury debt. You can get everything down, i dont know, 1 , 1. 5 and save us tens and tens and tens and tens of billion dollars. I dont know why the treasury doesnt refinance. Heres the thing. Trump has a big Corporate Tax debt. You know i love thachlt its going get better as they tweak themselves. Lets cut the Corporate Tax sharply. Let the economy reignite as it will in about six months. And then the fed can follow real Interest Rates higher. Thats the thing. First fiscal stimulus through good taxes. Second, let the central bank get out of their hole by following the economy higher. You just dont want to raise rates willy nilly. That would be a terrible idea. Larry, its evan. Im wondering how you managed to Square Donald trump with what i would say are a few of your core beliefs like free market, free trade, entitlement reform. Your man trumps doing nothing about entitlement reform. And given the way hes looking at washington, hes not going to get any tax reform either. How do you square what he says with what is your promarket, protrade policy . I think he will get it in. If he wins it will be a Republican Senate and Republican House and i think youll see a major, major tax reform. Hes going to get that through. Youre talking the art of the deal. The one point you have and ive acknowledged this before. I have been uncomfortable with mr. Trumps trade policies. Yes, i have. I dont deny that. Is nafta a bad trade really, larry . We understand that people have been through a tough time here, but do you think thats a true statement . I supported nafta and i continue to support nafta, but on that particular point, mexico does break a lot of trade laws. Theyre not as bad as china. China breaks all trade laws and something has got to be done about that. Trump has a point there. On the other hand, im opposed to tariffs who do more harm and that good. They will thwart growth. One thing thats good. Weve had interviews. Hes not talking about a 45 tariff anymore. Thats good. What we need to do is renegotiate these trade deals. And, again, a strong guy like trump, the art of the deal, maybe he can do it. Maybe he cant. But, evan, i admit. Youve got a point on me. Ive always said this. Ive been uncomfortable with donalds trade position. Weve got to go. I have on the screen jeb bush wont vote for trump or clinton. I believe that comes from Lindsey Grahams comments earlier. Well see. Paul ryan. Paul ryan is going to make a deal with trump. Paul ryan is a superb politician. I forget which broadway show it was but theres Something Like i have a little list, i have a little list, dada da. It might have been fieorella. Ryan has a list. A list of programs. Trust me, they will make a deal. That meeting is next week. We look forward to seeing what comes out of it. Larry, thank you for joining us. Thank you. Have a great weekend. We have an update. Seema modi, whats happening . No big surprise as Berkshire Hathaway give their numbers. They missed their wall street estimates. Book value increased since the year end and also the insurance float as of march 31st was approximately 89 billion. The stock really not reacting after hours. Well continue to dig through the press release. For now, kelly, back to you. Seema, thank you. We also have breaking news on the zika virus. Sue herera has those details. Hi, sue. Yes, kelly. It involves not only puerto rico but major League Baseball. They announced moments ago theyre scrapping a series in puerto rico between the Pittsburgh Pirates and the Miami Marlins because of player concerns over the zika virus. Major League Baseball and the Players Association had coordinated with the cdc to try to allay some of those fears of the players but theyd did not succeed. Theyre scrapping it. Theyre moving it to miami. It will be played in miami and they plan do some other things in puerto rico wu w some past players because obviously a lot of fans in puerto rico are going to bedy appointed by that. Kelly, back to you. They sure will. All right, sue. Thank you. Our facebook users having their privacy violated by the facial recognition technology. The lawyer suing the social media giant next. Plus former astronaut buzz aldrin is here to discuss the successful spacex launch and landing and whether it should be a public or private venture. Buzz aldrin coming up. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. Welcome bachlkt facebook is being sued over the photo tagging suggest feature. You may be familiar with it. The lawsuit was filed last year. The judge declined the motion to dismiss the case yesterday and the lawsuit is proceeding the court. We reached out to facebook. The company has declined to comment on it but they have confirmed users have the option to control the photo tagging setting. Only your friends can tag you and only if you have a facebook account. Joining us right now is jay edelson. Hes representing the plaintiff in this case, welcome and why dont we start with what this particular case is about. Sure. First, kelly, thanks so much for having me on. This is an incredibly important case for all of us who care about privacy. Facebook has been collecting the largest stash of facial prints in the history of the world and what we aelectrical that theyve been doing that without consent. Now, to really understand why thats an important case, you have to understand what facebook is going to do with that. Wait. Lets hang on. I want to that piece you say theyre doing it without consent. Correct. Facebook says, no, actually consent is part of this. If you could just explain why you think theres no consent here when it comes to this photo tagging suggest feature. Sure. Facebook did not say in the quote that you read that they got consent. That was something clearly written by their lawyers and they tried to be clever about it. What they said is people have control over facial tagging but what the law requires is that people actually first have to know that theyre checking this information and have to get consent to let facebook take it. And were very confident that facebook didnt do that. At the beginning of the program and even the lawsuit has been filed ill still hasnt gotten consent. What it sounds like is you want prior consent. When i get on facebook, if from that moment theyre collecting that facial data, i should be aware of that and accept or not allow them to do that. Thats exactly right. Its not my view but the illinois ledge lay tore who passed a statute that says this is whats required. Its a very easy statute to comply with and facebook for its own business reasons doesnt want to tell people what its doing. They know if they try to get consent people will know what theyre doing. Jay, e oom going bring in the panel here. I dont have a facebook account. Ive never used facebook and this is one of the reasons, though. I mean i dont know legally whether its impolicive. You sign up on for apple or facebook, you know, people, theres an assumption that will are lots of terms and conditions that people are not aware of when they sign up for it. Im sure embedded in this thousands of words of facebook. Theres something about photo tagging. Thats what i it may not meet mr. Edelsons standard or what the illinois ledge lay tore has but somewhere it mentions photo tagging. Were out of time. The unlikely outcome Going Forward they throw in this there where i accept terms, Something Like that, right . Yeah. Factually, though, thats not in the terms and conditions and were going to be able to demonstrate that to the jury. We feel extremely confident about that argument. Thank you for joining us and explaining your case. Well be watching that closely, jay. Thats jay edinson from edelson p. C. Do you know what photo tagging is . Yes. Remember when they let you upload photos in the first place and then they could recognize your friends. Yeah, i might have deactivated the account since but at one time i was quite the expert in this technology. Time for a cnbc update with sue herera. Police have temporarily stopped allowing evac years to drive south through the burning city because of the heavy flames and smoke near the highway. A convoy of some 1,500 vehicling started traveling in groups of 50 with police escorts. A fire official says about 500 gallons of pesticides were stored at a houston warehouse complex consumed by a large blaze on thursday and now authorities are trying to determine how much ran off into nearby creeks. Theyre warning the public to avoid the affecting areas. Potatoes where everywhere on a in fahighway after it spilled. The truck driver fell asleep at the wheel, hit a bare yore, and overturned. Get ready. The 142nd run for the roses gets warnld tomorrow. This morning the horses and their jockeys were getting in some lastminute training. Nyquist with a wshot of 31. Thats the newsy up date this hour. Kelly, have a great weekend. Thank you, sue. Happy mothers day. Thanks. Thats so sweet. Our sue herera, whos a great mom. Coming up, you wont believe the language redstone used during torts courtroom hearing. Thats coming up. First buzz aldrin. Hes making his way to the set. Hes been pretty outspoken on politics. Find out who hes supporting when we come back. Whats up . Does nobody use a turn signal anymore . Welcome bachlkt k. Elon musk going where no one has gone. Lets get to jane wells. Hi, jane. Hi, kelly. Spacex has two successful landings at sea and add a land landing. More successes than failures. The latest landing at sea on the socalled drone ship happened after the launch of japanese satellite. This booster would be coming down faster and hotter. So heres what happened. Oh. It looks like we have a landing. If you can see it there. At Mission Control here in Southern California for spacex they erupted into cheers of usa, usa,. Still cheaper than building a new rocket or at least thats the idea, an idea that will be tested in june when spacex will for the first time reuse one of its boosters on a launch. Of course, spacex also wants to send an unmanned space capsule to mars in two years. Kelly, that will be on a much larger rocket to be usable. To spend the money to make a rocket to reuse it. It doesnt make sense when youre only going to mars once in a while. Makes a lot of sense when youre going to the space station. Incredible stuff. Thank you. Our jane wells. Joining us now is buzz aldrin. In 1969 he walked on the moon and since then hes been a tireless advocate of space exploration, written nine books and invented a spatial orbit plan. Join know what these words are, buzz, for mars missions. Youre out with a new book, no dream is too high. Thanks for joining us at post 9. You have to learn the word cycling orbits. Cycling orbits. Thats my word for the future. Cycling plans for mars. Explain that. Psych ler cycler is around o spacecraft and other spacecraft join up with it and they do something and they leave and they do something else. So when the cycler swings by earth, landers join up with it. Then it takes the journey to mars. Theyre drafting. I think its a bit like wait a minute. Were not there. Were still cycling . It comes back to do it again. Thats where the psych ler. Its like the space odyssey this is for real. None of this mickey mouse. None of this buzz lightyear move. What you do think of elon musk. We think hes a thinker like me. Were on different paths. I want to go to mars. Hes a johnny come lately, you know. Its occurred to him somewhere, i may build a car. A car wont go there. Oh, rocket. We need a rocket. So were going to talk about going to mars with the cycling orbits . No, no, no. I dont want to hear about that. I know how to get to mars. Wow. Were going to build a big rocket. Theres another word that goes along there, you know. Sit for Family Television . Can we go there . Its a bfr, okay . Anyway, its got a dragon on top, and hes going to send the dragon to mars. I said, wow, thats beautiful. Tell me. When that dragon gets there, is there going to be anything else there to keep company with you . He thought a minute like he hadnt thought about it before. You dont think he can do it then . He said, oh, yeah, yeah, yeah. Well send an unmanned dragon first. So youre skeptical maybe. No. Im just inquisitive. Sure. Because id love to help him and id love to get those ideas that he has combined with other ideas so that it becomes a joint project. And one thats doable. I dont know if this is a segue or not. Donald trump, correct . I dont know. Listen. Whoever is in the white house is my friend. You sound like uncome tom. I want him to be my friend. He says that theres internal priorities. There are people in the congress that have these oversight and budget. But thats not the end result. Youre not worried if he says we have priorities we need to put before nasa if donald trump is in the white house in november . Whos going to do what . That donald trump is going to neglect space exploration. Hes made comments about focusing on airports first. Infrastructure. Yeah. No. I heard that. So im going to say to him, you know, ive looked at history, and its not nations that fix their potholes or their bridges. I mean after all the audubons didnt make hitler win the war, right . What makes a nation great is to inspire the world doing something that they may have thought was impossible, that will go down in history. Yeah. You want to know something, mr. President . The president that makes that commitme commitment to do that, to inhabit mars, will go down in history for thousands of years. Just as you will because of 1969. Thank you for joining us down here. Its really a pleasure, buzz. Thank you ever much. Buzz aldrin. Much more in the book, the latest book, i should say. Sumner redstone is not censoring his feelings over his exgirlfriend as the trial of his incompetency kicks off today. And a conference between cvs and viacom. So consider an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. 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I guess you dont see your family very much . I see them all the time. Did you finish your derivatives pricing model, honey . Td ameritrade. The trial over Sumner Redstones competency started today. He didnt mince words when he talk about his exgirlfriend. Julia boorstin has the latest. Hi, julia. Reporter shares. It was certainly a dramatic day. Both Sherry Redstone and she were present. They were both quite emotional at times. Ridstones video was played for the judge. The video was closed to the press, but we did receive the trand script. Redstones transcript used amply the f word. He said herzer stoeld money from him and he didnted want her in his life. When asked if e he loves her, he said he hates her. Hes happy with his care and wants his daughter sherry to be in charge of his care. The burden is high for herzers camp to show why redstones testimony and desires should not be desired. Tl interpreter often gave answers before redstone had a chance toance himself. Redstones Attorney Says redstone will show exactly what he was doing when he threw out herzer from his home. The doctor testified that redstones mental status was severely compromised and that he did not understand the consequences of his actions. Now an additional twist. Sumner redstone now plans to sue Manuela Herzer and other girlfriend Sidney Holland to recover the 150 million that he gave him. The suit will also accuse herzer and hollande of elder abuse. Kelly . Wow. That was a tricky one to try to navigate to bring it want to start a new business but cant get a loan . You may have to look no further than your 401 k . How you can roll over your retirement investments to launch a new venture. Ndrone . Cant blame you. Its a drone you control with your brain, which controls your thumbs, which control this joystick. No, im actually over at the ge booth. Were creating the operating system for industry. Its called predix. Its gonna change the way the world works. Ok, im telling my brain to tell the drone to get you a copy of my resume. Umm, maybe keep your hands on the controller. Look out ohhhhhhhhhh. You know what, im just gonna email it to you. Yeah thats probably safer. Ok, cool. This cit added this other level of clean to it. It just kinda like wiped everything clean. My teeth are glowing. They are so white. I actually really like the two steps. Everytime i use this together it felt like leaving the dentists office. Crest hd, 6x cleaning, 6x whitening. I would switch to crest hd over what i was using before. Welcome back. Getting a personal loan to fund your own business from a bank is not always a viable option for someone with bad credit. Pango financial is offering businesses an opportunity to fund their own business by money from their 401 k . Its tax deferred. You wont be charged a penalty fee. Joining us is the president of pango financial. Welcome. Hi there. Thank you. There is part of this that i didnt quite follow. You wont be charged a penalty fee . Youre actually rolling over your Retirement Funds to another qualified plan. We call this type of plan design, the dream spark plan. It enables you to invest in the stock of your own nonpublicly traded business, as well as having the ability to diversify into the publicly traded offerings as well. Is this an intended element of the rollover rules . In other words, have you always been able to do Something Like this on your own . You actually have, since the mid70s. This has been available through the irs and arisa rules. I wonder make you feel any better, evan . No, it doesnt. The average size of a 401 k plan, it cant be very large in the United States. The average im going to make up a number. Its going to be 50,000. I dont even know if thats close. Youre basically saying to somebody whos got 50,000 in 401 k savings, maybe the only capital they have, you can take as much of that as you want and try to spark your dream. To create a business. Which is high, high risk, really venture capital. Which is not really what people think of when they think of retirement money. Well, it is a highrisk investment. Its a nonpublicly traded business. So you need to be comfortable with the basically the potential for success within your chosen industry. Very well utilized in franchisi franchising. And you can do it where multiple employees invest. It doesnt have to come from one 401 k . Nor does it have to be your only investment. Another point that may make you feel a bit more comfortable is it can be paired with an sba7a loan. It can just be a small piece of whats needed to fund that business. It seems like a lot of moving pieces for not that much money. I guess what would be the other option be . What are the other options if im trying to improve my life standing by getting into a franchise and the bank wont lend me money . Even if the bank will lend you money, you will need an equity injection of your own capital. In order to pursue your dream of Business Ownership or youre outplaced, you have to find a job anyway. Were sharing this as an option so that you can really have the potential to turn that into a longer term investment. Candace, thanks for joining us. Thank you so much. Fascinating look. Candace caruso. Well get results from disney and some of the major retailers, tell you what to expect right after this. 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 . What is freedom . Yes, its riding a horse across fields and stuff but its mostly getting to watch your directv with unlimited data from at t. Were setting families free. So they can stream away and not squabble over whos using how much. So go, family. Watch. Freedom. Seize the data get unlimited data when you have at t wireless and directv. Switch now and get 650 credits, per line. Theres a lot of places you never want to see 7. 95. [ beep ] but youll be glad to see it here. Fidelity where smarter investors will always be. If only the signs were as obvious when you trade. Fidelitys active trader pro can help you find smarter entry and exit points and can help protect your potential profits. Fidelity where smarter investors will always be. It takesbut stealing itd work to eaonly took a few days. Female announcer protect your money. Find out if youre dealing with a registered investment professional at investor. Gov. Before you invest, investor. Gov. Welcome back. Next week, we start to pivot to retail. We have another earnings push that will also bring us numbers from disney. Macys and jcpenney, and solar city and honda and shake shack and nordstrom. I think the focus on retail is probably going to carry over through next week. The stocks have been very weak. We seem to have a very hesitant consumer. You also started to see the destruction thing to get really destructive. Costco, yeah in other words, the havenots have really been losing. I think you might see that in focus for a while. Maybe a headwind. Not like retail has been an area of leadership. If amazon was so strong, talking about Consumer Credit and other things going on, how much is that more broadly . We dont know is amazon dominating more than 100 growth in the area . I think the secular story is going to be like the story of the next six months. Well into the campaign. Because you have somebody like donald trump going at you. The entire industries right now are undergoing dramatic change, like the retail industry. Theyre never coming back. Theyre never going to be, you know, what they were ten years ago. Its just not going to happen. Theres a view, and its going to be increasing discussion among politicians. I know we have to go, about this issue. You cant bring the old america back. You finished just in time. Thank you so much. Were done on closing bell. Have a great weekend, everybody. Fast money starts right now. Fast money does start right now. Im melissa lee. Steve grasso, david, and guy. A curious thing is happening in the market. Its got traders flatout frustrated. Well tell you what it is and how you can take advantage. Plus, weve got the one group of stocks that could benefit if either Hillary Clinton or donald trump win the presidency. And later, this is no fairy tale. How would you like to get paid to buy shares of disney at a