Transcripts For CNBC Power Lunch 20150408

279,701 customer accounts were affected in the thefts. Lets say these were largely american customers who were calling spanish or Foreign Language call centers overseas. They say that at t will be required to notify all customers who have been affected in this scam. Guys were so used to seeing Cyber Threats and cyber data braechz now, heres an example of just good oldfashioned insider employees allegedly frc. It doesnt seem too worrisome for the stock. Barely moving on the news. Eamon, well continue to follow it. Thank you. Major deals and potential deals. First, this morning we learn that shell bought bg. A major deal in natural gas space. Then milan, this afternoon, announcing it was offering to parago to buy it for 28. 6 billion. Nearly 30 billion deal. Jackie deangeles covering the energy deal. First, though to meg terrell who is here at hq on this breaking announcement in the middle of the afternoon. It was kind of unusual coming out right in the middle of the trading day that milan is offering to buy parago for 205 a share. Almost 30 billion in a combination of cash and stock. Mylan saying that represents 25 where perrigo was at earlier this week. In a public letter the twol companies have had a number of discussions over the last few years, and this deal would give both more scale and reach in an environment where those are increasingly important. The combination would create a company with more than 15 billion in annual revenue, he says, from generic and overthecounter medicines. Both companies stocks are trading that theyre surpassing. Theyre now trading about 200. The deal comes amid an unprecedented flurry of consolidation in the drug industry. Much of it of course driven by tax considerations. Both of these companies are already based outside of the u. S. Due to deals that already lowered their Corporate Tax rates. Perrigo bought and moved to ireland. Thanks very much meg terrell. Obviously, you will the biotechs move. Now over to the huge deal in the gas sector. Jackie deangeles at the nymex. Jackie. Hey there sarah. Thats right. A big deal. Really in the energy space overall. Not only the largest deal that were seeing this year Royal Dutch Shell buying be group, but the Third Largest deal on record according to thompson reuters. Bg known for oil and gas assets and actually thats one of the reasons it was so attractive to Royal Dutch Shell. It will boost its portfolio by 25 . The other reason looked like the timing. Right now its good because bg has seen about a 30 decline in its stock price since weve seen Oil Prices Decline last summer. Now, with shell paying about a 50 premium here loofr people are saying this was the right time to go in and some are saying its because theyre trying to sort of out bid or create a situation where exxon does not come in with a counter offer. If others dont rebound the way shell was counting on this valuation could be high. Meantime, at the same time were wondering if this is going to spur a flurry of Energy Related m a. A lot of people are saying that we could see more consolidation here. Theyre saying to look at some of the names like anaadarko, bp apache, or eog, also pioneer, quick silver are some of the names that analysts have highlighted to me. Now, some analysts think that oil prices are trying to find a bottom here. Others are still saying we could see another leg lower. Thats because of the fundamentals of supply and demand right now versus some of the gee joe political instability thats been propping prices up. Back to you. Ill pick it up from here. Weve got some breaking news now. Meg terrell on that potential deal in the health care space. Thanks. We were just talking about the potential 30 billion deal. Mylan reportedly buying perrigo at 230 a share. Its a possible offer for the company. The board of perrigo will meet to discuss it and says a further announcement will be made when appropriate. Back to you. Ill pick it up. Thank you very much. Earnings season gets its own animation, folks. S its all news that kicks off tonight with alcoa. That stock down 14 over the past three months. Were looking at which sectors could buck the trend. A lot of people thinking earns could even go down this quarter for the first time in a long time. Which are going to buck the trend and maybe surprise . All right. So the bar is low when it comes to earnings expectations, and i do mean low here. This is what the experts on wall street are predicting about the strength of the quarter earnings season for the large cap s p 500. In the full swing of things here, as of right now, the Consensus Forecast is for earnings to decline by nearly 3 . You can see that little yellow bar behind me here. If that were to happen it would be the first decline that weve seen since the Third Quarter of 2009. Now, the strongest anticipated Earnings Growth is going to come from the financial sector. Over here you can see, again, thats because its the second biggest sector in the s p 500. Thats why its so important it carries a lot of weight. Industrials, health care and Consumer Discretionary stocks also expected to help the cause. Each forecasted to grow by 7 . As for the biggest drags are going to be no secret here. Follow me over here. It is of course the energy sectors. Expected here to show a decline of around 64 . Heres some perspective. If we strip out the Energy Stocks Earnings Growth for the entire s p would have been positive or expected to be positive by nearly 5. 5 . Now on the Revenue Growth side of things, analysts also expect to see a decline of around 2. 5 when it comes to that top line number growth. The anticipated growth will be cowered by this time around, Health Care Stocks to the tune of around 9 , and energy will be the big revenue drag here as well. The anticipated decline of 33 for Energy Stocks so that is the billing one on the energy side as well. Well see how these numbers change as earnings season gets into full swing, but for right now well send it back over to you, guys. Dom, thank you very much. Alcoa shares down 6 . We should note over the past four weeks, and we will of course be all over those latest results as soon as they cross. Thats right after the bell. And alcoas ceo, Klaus Kleinfeld will have his reaction to the numbers and his outlook. Thats today on the closing bell at 4 00 eastern. Sarah. All right. Breaking news in the bond market right now, tyler. Tenyear notes this time up for auction. Rick santelli tracking the action at the cme group. Whats the demand look like rick . Well, sarah, the demand in great form. Its straight up 1 00 eastern on this dutch auction. C for charlie. About as average of an auction with regard to demand as youll find. Its actually nineyear tenmonth. This is the last reopening, the second for tenyear notes. Auctioned a couple of months ago. Yield at auction 1. 925. 1. 925. It was tight. 2. 62 on bid to cover. 2. 62 of investor money. Every dollar is worth the securities for sale. Very average. 58. 5 on indirects. A little stronger but 9. 3 on directs was a little weaker. Its a hook. Keep in mind to o this tenyear they need the collateral. Im surprised im finding bigger demand. Tomorrow will be the last of them with 30year bonds. 13 billion to be exact. Sarah, its all yours. Good point. See you later after fed minutes. Lets check out shares of apple right now. The stock under a little bit of pressure today. In the last year, though, its been a juggernaut. Stock down. 3 . In the last year up almost 70 . Stock got a downgrade today dropping the stocks ratinged to hold from buy saying currency issues and tough comparisons for the phone sales will be weighing on the stock. Unusual to see a downgrade there from the analyst community. Theres a lot more on this story. Power lunch. Cnbc. Com. Go and check it out. Tyler. Tesla getting a nice pop this hour. The stock up about 2 . The stock has been under pressure this year. Its down about 7 so far. The electric carmaker to date turning up the heat on the luxury rival. Phil lebeau in chicago. News from tesla. Tyler, theyre upgrading the base level entry level model s. I say entry level even though its priced at 75,000. Heres whats happening with the model s. The 60 kilowatt battery pack thats go away. Its being replaced by 70 kilowatt battery pack version. Theyre going to call this the model s 70d. It has greater range, greater horsepower. It will be all wheel drive but it will not have the insane mode, and the price jumps up about 5,000 to 75,000. When you are looking at the model s price range, keep in mind the average model s sells for about 93,000, but this is the starting price. There you see the 70d and 75,000. The 85d at 86,200. The p85d with the insane mode thats the most performance version, that starts at just over 106,000. Why is tesla doing this . Clearly theres more competition when you are looking at the luxury car market. Particularly in the 60,000 to 90,000 range. Theres been a number of entries there. Tesla believes that this new 70d version will compete very well there. Comparison . On the price point look the bmw m4 convertible starts at 78,000. In terms of horsepower, the 70d will have 514 horsepower. Compare that with the porsche 911 turbo that has 520 horsepower. Tesla believes this will be a more competitive entry in that market. Again, as you take a look at shares of tesla, keep in mind this company got a bit of a pop last friday after the Company Reported First Quarter deliveries that were better than expected. The full year target, sarah, 55,000 vehicles. Most of those are model s. Another 2 on this move. Phil lebeau thanks very much. On average it only takes a short time to break even on buying a home versus renting, but nearly half of renters say they will not buy anyway. Why . Find out next. Plus would you let your Life Insurance company track your every move if it meant you did get a discount on your policy . One of the biggest u. S. Insurers is betting you will. Well be back on power lunch. Its back Xfinity Watchathon week. The biggest week in television history. Its your allaccess bingewatching pass to tvs hottest shows free with xfinity on demand. Xfinity watchathon week. Now through april 12th. Perfect for people who really love tv. Power lunch aerospace evening nearing Triumph Group are on the rise today. Thats after the Company Announced a change in the ceo jeff is stepping down immediately. He will be replaced on an interim basis by founder richard who is currently the executive chairman. The board will conduct a search to eave a permanent ceo candidate. The shares surging. Sarah, these guys are the ones that make the hulls for jumbo swrets. Thats what theyre best known for. I did not know that. Lululemon is struggling after ag upgraded the stock to buy. Stern ag setting the price target for the yoga maker at 77. Thats 16 above tuesdays cloegsz price. Imax fwraeg to a threeyear movie exhibition deal. Imax will be involved in live action films, and that is the new star wars movie. Sarah. With the help of the American Housing market, many areas are soaring while buying a home makes a lot manager financial sense. The renters still wont buy. Why . Diana knows. Hi, di. When you look at the numbers, several reasons, but lets talk rent versus buy first. Rent growth in the First Quarter of this year was 4. 9 . Thats the highest its been in nearly four years. Occupancy also up. So youre not going to see rents come down much any time soon. You look at all the costs of buying a home today. It takes on average two years for the average home buyer to break even. That means to be paying the seam as they would be to rent. It takes less time in dallas and the midwest. More time in california and new york and here in d. C. Of course. Still, given all that nearly half of renters surveyed said either their credit or finances are keeping them from buying a home. About onequarter of the renters surveyed said theyre struggling just to pay the rent, so never mind even saving for a down payment, and then all the mortgage math aside, 20 of renters said they simply prefer to rent. Now, this dovetallyils with another survey saying a decreasing number would buy. They cited poor Income Growth and lack of confidence in their personal finances. Even as we see home sales start to edge up a bit, were not seeing much growth in that first time home buyer. That is the renters, turning into homeowners. Tyler. Diana, thank you very much. Would you give up privacy to your Life Insurance company if it gave you a discount on your policy . One of the biggest u. S. Insurers thinks you will. Is it a good idea or does it open a pandoras box . Plus coming up a power pitch in the eye of the beholder. Think open table, but for beauty services. Will the panel say its a beautiful thing . Tell us about why youre different. So what is your fundraising strategy . Stay tuned to find out. Protect you from cancer . What if one push up could prevent Heart Disease . [man grunts] one wishful thinking, right . But there is one step you can take to help prevent another serious disease pneumococcal pneumonia. One dose of the prevnar 13® vaccine can help protect you. From pneumococcal pneumonia, an illness that can cause coughing, chest pain difficulty breathing and may even put you in the hospital. Prevnar 13 ® is used in adults 50 and older to help prevent infections from 13 strains of the bacteria that cause pneumococcal pneumonia. 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I would indeed. Well, lets be clear here. Im actually a dj. [ dance music plays ] [laughs] no way i have no Financial Experience at all. That really is you . If theyre not a cfp pro you just dont know. Find a certified Financial Planner professional whos thoroughly vetted at letsmakeaplan. Org. Cfp work with the highest standard. Time for the power pitch where entrepreneur advisory 60 seconds to persuade a panel of experts that their startup has what it takes to be the next big thing. Im hillary hutchison. Im ritika gill. Beauty book is the premier discovery of booking app for salon and spa appointments. Think open table, but for beauty services. Were making womens lives easier by providing 247 realtime access to thousands of salons. Were also helping salons and spas. We help businesses acquire new clients and fill empty seats. Plus, its super easy to join. Weve created a unique interface that speaks generally with the salons in realtime. That means theres no extra work required to showcase appointments on beauty book. Today beauty book serves thousands of sal ojs and spas across seven markets, but this is just the beginning. Join us as we revolutionize the 40 billion salon and Spa Services Industry and bring it online. Welcome, everybody, to todays power pitch. Im mandy drury. You just saw the pitch for today, but lets meet the panel. On the set decork debbororah jackson. Its a site that helps female entrepreneurs jumpstart sales. And jessica peltz, the firm invests in early stage startups. The focus on advertising and marketing. She also mentors. And from the bay area Sonja Perkins at menlo ventures. She founded broadway angels an all female investment group. Shes invested in more than 50 companies. A few that have hit multibillion dollar valuations. Girl power here on the show today. Ritika and hillary, are you on the hotside seat. You would you like to slow the first question out. Hoo tell us about why youre different and better in what your segment is. We created this unique infrastructure where we integrate the salon and spa software acquirers. Very challenging to create what weve done. Weve definitely created a barrier. What percentage of them are repeat customers . Our repeat rate has been skyrocketing. Were over 40 . It has continued grow, and were seeing onethird of our Customer Base is now booking more than three appointments a month. What do have you in your Engineering Team and also what do you have in your Customer Acquisition thats going to help you be the one that takes all this market . Over 70 of salons and spas today are using a Backend Software to manage their schedules, and by integrating with these software providers, we are able to scale very quickly. By the end of next year well have access to over 50,000 salons and spas across the country as well as a presence internationally. Every time a consumer books an appointment through the beauty book platform, we give her reward points. She can then redeem these points for products or services. We partner with the salon and paw spau on our platform and we innocentivize them to promote beauty book to their existing clients. Finally, we have secured distribution agreements with premier publishers like allure magazine where they promote and distribute our appointment inventory on allure. Com. People are trying out new alsalons and services. Where does the liability fall if they have a bad experience . Is it on the salons to make good on that Customer Experience or falling back on beauty book . First, i want to point out that all of the salons and spas on the beauty book platform have been vetted by someone in our community. If someone has a bad experience which is very rare then its really up to the salon to make it right. What are your fundraising strategies and how are you going to go about it . Today we have raised 775,000 from the new york angels and innovation garden and other amazing Angel Investors who have participated. We are planning to raise a series a in the fall. We all heard what hillary and ritika have to say. We want to know if the panel is in or out. At the end of the day, you have a real Important Technology behind the scenes. Its not just an app. You actually are a company that really is building something and connecting into other software platforms. Thats important. Im in for that reason. Its very cluttered marketplace, but for this particular category i believe in the power of partnerships. I think what theyve built is very strong and reseptive to audience. For that reason im in. I dont think the market has a Market Leader yet, and i think with the proper execution and these guys could go for it and run with it. Im going to be in on this one. Fantastic. Weve got three ins. Okay. Thats actually quite rare. We dont often get all outs or all ins. Whats your reaction . Were super excited. Its great to get such positive feedback. Thank you, everyone. Best of luck. Hope you do really well. Hellry, ritika thank you. Thank you to our panel as well. Thats todays power pitch. Are you in or out on beauty book . Im all in on beauty book. Tweet us using the power pitch, and for more visit power lunch. Cnbc. Com. Sarah. All right. Dom now for a market flash. Dom. Sarah, shares of pentair are trading lower. They have been all day long. Industrial machinery is cutting its First Quarter guidance. It sites the strong dollar and lower than expected oil and gas industry demand. This company does a lot of things with fluid technologies, so, sarah, a down day for them. Back to you. Thanks, dom. A check on the bond market on the back of that tenyear note. Top of the hour Rick Santelli tracking the action at the cme. Rick. Hi, sarah. If you look at intra dah, you can see that we do see the yields dropping a bit after the auction. It wasnt a great auction. It was average. We have been building concessions in our week meaning higher yield, lower prices for the people in the auction to participate and it made a huge difference. Maybe it gives you a better story why we turn and basically were sitting at yesterdays high yields. If we look at whats going on from december 1st of 2014 on a five versus 30 spread you can see its starting to steepen, and its important because if you open the chart back to late 2007 you could see that we basically have been hovering at the flattest weve been in eight years. You want to watch this spread when the minutes come out at 2 00 eastern. Tyler, back to you. Actually, i think sarah is going to pick it up. I know youll be with us rick, for that. Tyler . Were going to break in and let you know that a verdict has been reached in the boston bombing case of Dzhokhar Tsarnaev. We dont know the verdict. We assume it will be announced very shortly. Court will reconvene at 1 45 p. M. At that point obviously we will get we will get the results of the jurys deliberations on some 30 counts many of which, but by no means all of which, carry the Death Penalty. Ranging, obviously, from the use of weapons of terror and mass mass murder to other accounts involving lesser charges, but obviously this the jury began deliberating about a day ago. The defense in the case as you probably know conceded that tsarnaev was a part of the plan to bomb the finish line of the Boston Marathon two years ago, but has tried to persuade the jury that Dzhokhar Tsarnaev was effectively the pawn of his older brother, was under his sway. The older brother deceased killed in a confrontation with police, and hit by the younger brothers car as he tried to flee the scene. The jury made up of seven women, five men, six alternates three were killed in the bombing, as you probably recall. 260 injured, including many grievously injured. 17 of the 30 counts carry the Death Penalty. Most involve the two bombs, but also the murder of an m. I. T. Police officer as they were trying to capture and as i recall trying to get his gun ended up shooting him. A carjacking, shootout while on the run. So at any rate he was then dzhokhar, was 19 at the time. He is now 21. Tamerlan, the older brother, who is the one who allegedly bought the bomb parts, built the bomb and planned the attacks, and that is the key to the argument of the defense led by a noted Death Penalty defense attorney. That is key to their defense that Dzhokhar Tsarnaev the younger brother, was more accomplice than actually responsible for the attacks. Sarah. Just a clarification here on the series of events. We know tyler, that the court is set to reconvene at 1 45. We do not know for sure if that is when the verdict is going to be read but that explains the headline on your screens. This is a federal court, so no cameras inside the court. Thats why you are seeing sketches from inside the court room. There have been many wheats obviously. A lot of interest in this case. If he is convicted, tyler, that same jury will then begin a hearing on whether he is to be put to death or serve life in prison. Theyll start the hearing on evidence of that. That is if there is a conviction here of guilty. Right. So just to recap, before we go to a quick break, that federal court jury in boston of seven women and five men has apparently reached a verdict in the trial of Dzhokhar Tsarnaev and the court will reconvene at approximately 1 45 and well find out more when that happens. Well be right back as we watch all the news including the markets with modest gains this hour. Bring us your aching and sleep deprived. Bring us those who want to feel well rested. Aleve pm. The only one to combine a sleep aid. Plus the 12 hour pain relieving strength of aleve. Be a morning person again, with aleve pm. [ male announcer ] legalzoom has helped start over 1 million businesses. If you have a business idea, we have a personalized legal solution thats right for you. With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today with legalzoom. In 12 minutes time the court will reconvene in the case of Dzhokhar Tsarnaev the man accused of conspireing in the Boston Marathon bombing. A jury has reached a verdict in that case and court will reconvene at 1 45 p. M. And we will of course be following that. Were joined now by michael, former u. S. Attorney general and a judge, and he join us on the phone to discuss this case and what happens next. Mr. Attorney general, welcome. Good to have you with us. What is likely to be the pace of the proceedings here . What are we likely to learn . Then what happens next . I think the court will say that the verdict has been reached. The verdict will then be read either about the foreperson. The defense lawyers will have a a chance to ask whether this is in fact, their verdict. The next stage of the proceeding if there is a conviction on one or more of the counts that carry potential capital sentence, the procedure is then to start the second phase, which is a punishment phase in which the jury is asked to determine whether the punishment should life, and the jury will consider only a few are actually relevant in this case. That the government has given notice of that it defends intends to prove, and then the defendant can put on evidence of mitigating factors. If you use aggravating factors, and if you explain what those are. If there is a conviction here and if this jury and the court then moves to the sentencing phase, what would the timeline look like and how long with those expect that to take . Those jurors just got this case yesterday morning, and then there was a fairly swift, it would seem progression through the 30 counts here to get to the point where the verdict has been reached. Well the sentence the deliberations, obviously theres no way to predict how long they will take. Its ease where i to see why they didnt take a lot of time in the guilt phase because there wasnt much dispute about it. Will they mooe move immediately from this part of the trial to that, or will they take a couple of days off . They may very well take a couple of days off. I dont know whether the judge has discussed this with the parties. I suspect he has. 17 of them carry the Death Penalty as punish am. What is the likelihood of that and you have had Cardinal Dolan of boston, for instance coming out, speaking out against the Death Penalty. The Death Penalty was going to be impose snd. Correct. Well understand that the jurors in this case were. For no one is categorically posed to the Death Penalty. Its a good bet that it could conceivably happen. That said massachusetts is not is not the most conservative of states obviously. You may very well get one or more holdouts. Tul atakes it one juror to prevent the Death Penalty from being imposed. One juror votes no after the deliberations, then the sentence would have to be life in prison. But thats a very interesting qualification or distinction that you just made there, being that this was death this jury was Death Penalty qualified. In other words, there was no one on it who was inalterably you talked about mitigating circumstances a few moments ago, and that that will be central if there is a conviction on guilt here to the penalty or sentencing phase. Touch on a couple of those points, if you will. Okay. The defendant can present mitigating factors as factors tending away from death, and that will include things like impaired capacity, diminished capacity durress, and he has lamed he was under the influence of his brother, so he could try to claim that he was forced some way to participate. There are other factors that i think arent really arent really relevant here the one factor is lers extent to anyone else. I dont know that thats necessarily open to him, but it may very well be. And on the aggravating circumstances side that would include . The aggravating factors would include a particularly heinous method of committing murder. That would include multiple murders. It would include exposure of people the possibility of more victims. All of those, of course are relevant here. The doing it for money, which is not relevant. Substantial planning and meditation, thats relevant. Prior conviction of two felony drug offenses thats want rel vapt here. There are a whole there are about 15 or 16 listed aggravating factors. The prosecution would have to give notice as to which of those factors its relying on for that phase. The defense does not have to give notice about what mitigating factors it is going to rely on and, in fact one is listed in the statute are not exclusive. That is a defendant can present anything in the way of mitigation that he or she wants. Judge, i would love it if you could stay with us for a few more moments. Were going to be joined on the phone by alan the esteemed lawyer. Welcome. Good to have you with us. I was just going well thank you. Im not anything like an esteemed lawyer compared to the somewhere. He was my lawyer. He was my lawyer back 25 years ago before he became a judge, and he won the case for me. Well how fortuitous is that. I was just going to ask whether why this case was tried in federal court as opposed to massachusetts court. We abolished the death peblt in massachusetts about 15 or so years ago. The big question is whether or not massachusetts jurors reflect the attitude of massachusetts. The trial having been done in massachusetts. The brilliant defense lawyer in this case, clark, tried to move the case out of boston and to an area less liberal and less involved in the crime itself, and that was a lated move. The judge turned it down. Now she has a boston jury for better or worse, on the Death Penalty. It remains to be seen. I just want to point out here that in just a few minutes, actually, this federal court is going to reconvene. What we know now is that there is a verdict. A verdict has been reached. We assume that that is what is likely to happen at 1 45 though we dont know. We do have a live picture of the boston courthouse here. Of course, 30 counts waiting for the jury. I just want to ask your speculation as you watch this case unfold, how difficult alan, do you think this was for the defense attorney judy clark, who only called four witnesses, to make this case that it was the influence of the older brother here . Well she hasnt really tried to make the case yet. When the prosecution put it on again, they would be the defense material will be fresh and new. Before shes concerned, shes playing the long game. Lets turn to judge and then you, if i might. Obviously, were treading on the ice of speculation here. What would you think here . Is it likely that a Death Penalty sentence would come about if theres guilt during this first phase and we move to that sentencing phase . You point the out a moment ago that all it takes is one juror who basically cannot who says im just not comfortable doing this even though as you pointed out, all of the jurors in their prequalification said they had no inalterable opposition to the Death Penalty. I dont view this i dont mean to be joking in a serious matter, but a great legal philosophy named yogi berra said i never make predictions, especially about the future. Predicting a jury verdict is enormously difficult. When you have a need only for one juror to hold that in order to get a life sentence. Jump in. As you point out, this is a boston jury. Ly make a prediction and the prediction is that tsarnaev will die in prison and not as a result of the Death Penalty. I think its very unlikely that you will get 12 yours, and if you get 12 jurors then it has to go through the appellate process. Let me leap in here. You paid a high compliment to the defense lawyer who is a known expert on Death Penalty cases. As i understood it a big part of her defense of tsarnaev was that he was under that he was under the spell of his brother. That doesnt cut it for me . Me either. If somebody asked me would i base a decision on that . Absolutely not. He was an adult. He made a decision. He did a horrible, horrible thing. I think shes using that as a way of getting mitigating factors in front of the jury and hope that one or two or several of them will find the mitigating factors. Wronk shes really expecting the jury will say uhhuh he was really under the influence of his brother. Lets make a decision based on that ground. It was intentional, blood thirsty. It was to make a point. So we have the two sides of the argument. As we await, 1 45 we are expecting this court to reconvene. I dont know the answer to this. Maybe you do. Do you know whether if this jury decides to impose the Death Penalty, whether they have to be unanimous on the aggravating factor or factors . I dont think so. I dont think thats true. Its certainly not true in many state courts but im not sure. They have to agree, burden of proof on the aggravating factors was higher than it is on the mitigating factors. I have to go now, but can you call me when the verdict is in. All right. Thank you very much. Thanks. Alan of Harvard Law School and a former client of judge mukasy. Thats a for tu thank yous little side circumstance. And a colleague and a friend. Well thats im glad we got you guys together. The court was scheduled to be reconvened two minutes ago, and we assume they have. We know theyve reached a verdict in the guilt phase of the case. Theyre considering 30 counts here. 17 of those counts carry the Death Penalty, and just to review, if he is convicted, that jury will then begin to hear evidence on whether there is going to be whether he is going to be put to death or whether he will serve life in prison as was predicted that he would. It was basically because the federal law allows for the Death Penalty and massachusetts avoided it. Is this a case where if a federal prosecutor says, hey no we want to do this case that the state basically says okay, and backs off or what . Well i think that the choice is really up to the justice department. If they want to do it, theyll get to do it. I think the decision was made at the highest levels of the department that this was a case that warranted at least a consideration of a capital sentence. As we move forward, if there is a Death Penalty sentence here there will be a long process to follow a costly one. Walk us through that. Well the defendant has a right to appeal and he will the appeal goes at least two levels. One to the Circuit Court. If the Circuit Court confirms both the conviction and the penalty, then he would have a right to try to get the case with the Supreme Court. That would depend on the nature of the issues he raised. Not every case is in effect the overwhelming majority of cases where people rye to appeal to the Supreme Court. The Supreme Court does not hear the case. Wee have to claim he had some issue that was worthy of them considering it. I dont know off hand whether he is likely to be able to raise any such issue. That depends in part on what happens to the penalty phase. Obviously, my question, i dont mean to presuppose what the jury might do and im carrying us down the road farther than we should go at 1 50 central time on a wednesday here. Do you happen to know judge mukasey, any of the federal prosecutors who were involved in this case . You worked with any of them . I have not. Okay. Well then thats a simple answer. As we just recap, the charges against Dzhokhar Tsarnaev, the jury has reached a verdict in that case. The court has was to have reconvened about five minutes ago. A fert court in boston. As you see, we are looking down at the assembled media and some Law Enforcement officers there in anticipation that the jury will announce its verdict here. What to be mindful of here as we wait a wait this decision . I think the rules for admitting im not familiar with the rules for admitting evidence in massachusetts state court. I think alan would be more familiar with that than i am as a resident of massachusetts. It is often the case that its easier for get evidence in in state court than federal court due to evidentiary rules. Other than that theres not a lot of difference. There may be small differences in the practice of state and federal courts but beyond issues of evidentiary rules and, of course, the ultimate penalty that could be imposed, thats a whole different thing. Just to go back and as you said, its a fair sup pos ition that the guilt phase will find guilt and then they move to because the defense has actually conceded that he was involved. I believe the sprayed was he did it. Who is the judge in this case . I dont have it in front of me. I didnt follow that. If he i cant give you a name, you cant respond to that. Brian sullivan is with us and, brian, join in here. Thank you very much. Tyler, mr. Mukasey, what are some of the hurdles that need to be overcome as far as you know when we look at the 17 different charges that would possibly carry a Death Penalty how many verdicts would we need to have a verdict on in order for it to be a Death Penalty . Any of those counts. In the sentencing would there be any weight placed on how many of those 17 that are Death Penalty eligible that we would have to have a guilty verdict on that would skew a potential decision and sentence to Capital Punishment if its more or less or are they literally all equal weighted . Theres no cameras allowed inside the court. Were looking at the live picture outside. Obviously, the media starting to gather as were told that court resumed at 1 45 and that a verdict had been reached. Michael, jurors had been listening to all sorts of i think there were 92 witnesses called. They look at graphic testimony, photos of injuries and deaths. This is probably a very difficult and emotional trial to undergoal. Talk about what they have to consider and how hard this is for them. I think jurors generally in my experience take it very seriously. Its enormously difficult for them. They are sworn to render a verdict on whats based in the courtroom and not anything else. Im sure theyll be diligent about doing that. All of them said that they can do it. At least you have a population of people that are willing to assume that verdict. What as alan mentioned, i believe you did too, this is a case in boston with a massachusetts jury a boston jury who are deliberating over events that struck at the heart of that city. The defense wanted the case moved to a venue they thought would be lessee emotionally charged. The judge rejected that. How does that play in the jury deliberations at all. This was a very personal thing for the city of boston. We tried the first bombing of the World Trade Center in new york to a new york attorney. Jurors dont have to swear they never heard of the case they never heard the facts of the case. All they have to do is promise that they can decide is t based on the evidence thats presented in court rather than based on something else. It culminated in that horrific manhunt thursday night into friday when Dzhokhar Tsarnaev was caught in that watertown as we watched in watertown helicopters flying overhead we watched until he was brought out in an ambulance where the crowd basically turned from crying to cheering. Thats the event that is culminations in this verdict. It was its easy to forget those days that were horrific and terrorfilled days in the area, and clearly all of these jurors experienced that and have their own thoughts and opinions and reflections as they reach their verdict. Seven women, five men. Six altives. Just from what you have described, clearly this verdict is going to be some type of closure for them. The verdict. If he is convicted, whether the jury will decide that he has to be put to death, scott. Clearly, the closure will come in the penalty phase. Its fairly likely that. When we look ahead here when they say 1 45 they mean 1 45. What would be going on in the court right now to the extent that you could describe the scene to us . He will know theres a verdict, and the prosecution, of course, will be gathering and putting all their records and papers in order. So as to hear the verdict and be able to record it and then move on from there. We would love to have you with us as long as its convenient for you. Well break away in a few seconds time because theres another big story that were going to follow, and that is the release of the Federal Reserve minutes from its latest meeting, which will are embargoed until 2 00 eastern time. It was reported later in the year. A couple saw a rate hike until 2016. To me the report in june that several participants supported a hike in june is news to me. Almost all participants removing the word patient. They did prefer the language this it gives them flexibility to height on a meeting by meeting basis. One participant, however, objected to removing patient something of a checklist for when they might. Ill toss it over to brian for a quick Market Reaction if we see any. We arent i think some of the more hawkish comments that steve just gave you about the possibility of a june rate hike sending stocks down. The tenyear yield staying put where it is. The dollar index not moving much as well. I believe, tyler, the world right now, america right now, perhaps is enveloped and wrapped up in that jury verdict, which we are awaiting for the boston bomber. Perhaps very true brian, and, of course it is an emotional and riveting scene for all americans, especially those people in boston who were so intimately affected by it. We await a verdict, and it has been reached. A court was to have reconvened. Roughly 16 minutes ago. Federal court in boston. We expect that the jury is probably in the courtroom now, and that it will be announced shortly as we say. Judge, michael mukasey, former u. S. Attorney general and judge is with us. He has been guiding us very patiently patiently. We talked just a moment ago about the defense. The defense that was that tsarnaev was under the sway of his brother. How does that ring to you . Play the hand you got, i guess. Exactly. You do play the hand you got, and you play the shot youre standing over. You cant change the facts. I think thats going to be a bit of a tough row to hoe because of the statements he made on his own about how really he was acting and so forth and statements that show that he was relaxed about the whole thing and pretty committed to it. Also the facts are here that the older brother, who we should mention is now dead was 26 years old. The defense argument was that he was the mastermind here. He influenced his younger brother, tamerlan the oerld brother who died. He bought the bomb parts. He built the bombs and he planned the attacks. That is what judy clark, the defense attorney has to argue and has to convince a jury. I dont know what the government is prepared to prove about that part of the background or what they have proved already. Obviously theyre going to be permitted counter that and show that these two people who acted more or less as equals. Brian, sullivan asked an interesting question, which you answered, but for those viewers that are just joining us at the top of the hour a variety of these counts, 17 of the 30 carry the Death Penalty. It is not required that the jury find guilt on all 17 for the Death Penalty to be imposed. Right . Correct. Any one will do. Any one will do here. To recap, if he is convicted, then what . What does that jury do . How does it how do they begin to hear evidence on whether they will indeed impose the Death Penalty . Well then each side will get an opportunity to present evidence. The prosecution will present aggravating factors. They have to give notice in advance of which of the 15 or 16 aggravating factors they intend to rely on here. I think there are three or four that are applicable. They would have to have given notice in advance of that. They can rely on anything as other psychological issues to the influence of his brother. They havent been required to say that as yet, but as alan pointed out, they did lay the ground work for showing that it was the older brother who was a major influence here. I want to get to scott walker who has breaking news. Sfroo listen i really need to go do some other things. Please. Please feel free judge, if you need to go with our thanks, and we hope well be able to rely on your knowledge and wisdom again soon. Judge michael mukasey, former u. S. Attorney general. Thank you very much. Scott. I was just going to give you some lore in the fact that accused Boston Marathon bomber Dzhokhar Tsarnaev will literally learn his fate in a matter of minutes. He is now in the courtroom. The courtroom has begun to settle down. The spectators are in. Family members are in. In fact were told the Richards Family is in the first available rose for the families. They, of course lost their 8yearold son martin richard, one of three People Killed in that bombing. Interesting no note we are one week shy of the 2year anniversary of this bombing, and we do expect again, this verdict will come down imminently. Also worthy of noting the reason were looking at the pictures we are and not inside the courtroom, its a federal court. Thushgs tv cameras are not allowed inside. Well be at the mercy of sketches for any sort of reaction, but we do have news people inside that courtroom within the courthouse to relay the verdict as soon as it is read, and we would certainly believe that it would sort of happen in the manner that weve come to expect. Count one, conspiracy resulting in death. How do you find . Then the jury will give their answer and kwently they will go through each of the 30 charges. Should also tell you that 17 of the first 18 in which you will hear, the spectators are in the room the defendant himself is in the room. We await this verdict. Scott, thank you very much. Lets bring in kendall, former federal prosecutor from florida. Mr. Coffey thank you very much for joining us. What can we read into . It sounds like a the prosecution evidence was overwhelming. At the same time they came back with fairly logical questions about what a conspiracy is, what is aid and abetting. Important, important concepts in this case. The jurors are walking back into the courtroom. We are anticipating a verdict very shortly now any moment in the case in boston massachusetts. Kendall, im going to go back to you, but if we have to jump in im going to just forgive me immediately for interrupting you if you have to do this. When we go through the charges, is it likely because the jury is coming back into the courtroom that they have indeed made a ruling on all 30 or is it possible that they will give the judge their responses for some but still have questions . Or is this definitive . I think were going to hear a verdict on all 30 counts. A few may have questions about some of the counts, and the judge further explained the law of conspiracy and aiding and abetting. Snoo the judge said it is common for the defense then to ask that the jury be polled. What is the purpose of that . In rare instances, a single juror might not have really wanted to reach that verdict. They could say i was pressured into it. It almost never happens. No one is expecting that to happen here. I would be surprised if the defense even makes the request, except that they have to cover everything everything. We got to jump in. Lets go down to scott walker. The verdict being read. I want to tell you that mr. Tsarnaev has been found guilty on count one, which has just been read in the courtroom. It is a Death Penalty charge. The count as follows. Conspiracy to use a weapon of mass destruction resulting in death. The jury finding dzhokhar cia tsarnaev guilty on count number one. They will go through each individual count as he is facing the jury and listening to the charges and hearing the counts against him for these bombings some two years ago. Again, guilty on count one. The sepp women and five men deliberating for a little more than 11 hours time. A time that testimony was, in fact, fwrafk. They heard screams of one of the victims who ended up bleeding to death from this bombing. A restaurant manager, one of three People Killed. Some 260 others injured in this bombing. Well continue to bring you the verdicts on each charge as we get them. Okay. I just want to remind our swrurz u viewers, there are 30 overall counts 17 of which are Death Penalty eligible and although the death pinpoint is not am cant in massachusetts, it is a federal case. As you heard judge state earlier, only one guilty verdict is necessary under a Death Penalty eligible charge for the Death Penalty to be carried out. It does not mean that it will be. Sentencing will be done at a later time. This is the verdict phase of the trial, but as scott walker just gave you, a guilty verdict on count one, conspiracy to use a weapon of mass destruction, resulting in death, of the first 18 different counts that you will hear 17 of those are Death Penalty eligible. The most serious counts are going to be the first one that we hear. Let us go back now to somebody who joined us momentarily earlier and had to jump off. Alan dershowitz your reaction. Everybody anticipated it. I think even the defense lawyers. Twoef move on to the next penalty phase. Obviously this is an enormous decision they have to make, and weve heard from this some people, including Cardinal Dolan of the cardinal area that is he against the Death Penalty. The biggest decision the defense has to make is whether to put tsarnaev on the witness stand. If they do this will be all about how they react to him as a human being. He risks being shown up as a guy thats arrogant and with no remorse. Its difficult for the defense lawyer. If he were to testify gentlemen, would he be then be subject to crossexamination by the of course. Of course. Sdwa just batdz count one is guilty, that doesnt mean this is scott walker. Professor dershowitz i wanted to interrupt. Count two, three, and four guilty on all three of those counts. The first four counts that have been read inside this courtroom, all returning a guilty verdict for joe har tsarnaev and each one does carry a Death Penalty charge. Forgive my interrupting. Now we know that the first four charges are all guilty. Do you then presume that all of the remaining ones will be will similarly be found guilty or not . I think its likely. Zi think some were not sure about some of the counts. Whatever question some of the jurors may have had, i think more likely than not well see guilty on all the counts. Does that make it more likely alan that, this jury is going to find in favor of the Death Penalty, the more of these counts that come in that are guilty . The defense consistent come forward. Theyre saving that. It will be fresh during the penalty phase. Judy clark plays the long game, and the long game is not guilt or innocence. The long game is Death Penalty for or one juror holding out. Thats all you need under federal law. That is an extremely important point here because, listen weve got now four guilty verdicts on the first four counts that we have read. That alone makes tsarnaev Death Penalty eligible but your point is well taken. Agrees in the guilt. It is getting everybody in one room whatever their moral or religious or ethical beliefs to say, that joe har tsarnaev should be put to death this will likely, will it not be be a more difficult and higher hurdle than the actual verdicts. Its about getting one juror to hold out for life sentence rather than death. Given the horrors of the evidence and the horrors of the crime its going to be difficult. Given the fact that the jury came back with a question about conspiracy and aiding and abetting suggests that theres already an understanding that there is some. What would those include . You can go beyond the list of mitigating factors and focus on anything that you think might be mitigated. Anything in the world. Look, he is very lucky. He has the second best criminal lawyer in america. The first one is Kendall Coffey who is on your show right now. He is the guy i would pick to defend me. He is a terrific lawyer. All right. Alan i was just going to say, lets just recap what we have learned after 11 hours of jury deliberations. We now know that at least four counts Dzhokhar Tsarnaev has been found guilty. Check with our news desk if i might. Forgive me for talking through here. Do we have verdicts on any of the other counts . Can someone advise us . Ill advise you, tyler. No, were still waiting for those other counts. Just to give you an idea of the counts that we still await. There is count five possession and use of a firearm during and in relation to a crime of violence resulting in death and aiding and abetting. Count six, conspiracy to bomb a place of public use, resulting in death. Count seven, bombing of a place of public use, resulting in death. Aid and abetting. Whats interesting about part of those through actually im told now through count nine are all guilty. Counts one through nine are all now guilty. Each of which do carry a Death Penalty charge. In fact, the only charge within the first 18 that does not carry the Death Penalty as i have it is count 11 which is conspiracy to maliciously destroy property resulting in death. Sfloop im not saying the rest of the counts arent serious. If n some cases they will be made to make a point. Especially if he is found guilty on all 30 points. Lets look ahead now because the reality of Dzhokhar Tsarnaevs future existence will now go into the sentencing phase. If you are judy clark what dower say . Guilty through counts 12. Counts one through 12 are all guilty. Who top story jump in and answer . Kendall, are you still there . Im here. Well, the focus. What we dont know is what do they have about a defendants life before boston . In terms of things that they could bring out and his upbringing, his growing, the influences. What we assume think will say is he directly involved in the bomb making and the culture. There was an overwhelming dominance by the older brother that he idolized and the emotional control the dom nation of his older brother is enough to say that this guy who is 19 and completings dominated by his older brother is someone who should want be put to death for his crimes. How long did sd this whole process take alan . The time that theyre going to hear the evidence and the whole sentencing trial begins . Nobody knows for sure. Only prediction i will make i predict that tsarnaev will not die in the death chamber. He will die in prison. Naul all the highly respected card until in a city that has large number of quite religious catholics, has come out against the Death Penalty. There are other churches and other religious groups and other civic groups and civil libertarian that is are gents the Death Penalty. He would be made a hero of. If he is given the Death Penalty, certainly all the antiDeath Penalty people will be around him. He deserves to die in ob security in a prison hated by his fellow prisoners. Professor, let me just say as well that counts one through 14 now its 17 and 18 that are the Death Penalty. We are now one through 14 that are all guilty. Welcome to the program. In your experience how difficult might it that we dont know the beliefs of the men and women in this room. How difficult will it be to convince all 12 of them and indeed it does have to be unanimous, that a Death Penalty is the appropriate sentence for Dzhokhar Tsarnaev . If there ever was a case for the Death Penalty and im not an advocate of the Death Penalty, this certainly qualifies. This is a horrendous act that has affected everybody that not only was at that event, but in this country. The fear factor of going to public events. Its difficult to predict how 12 individuals who you do not know who you just interview basically and who say yes in the appropriate case we could give the Death Penalty, if they will actually follow them. If, in fact they will follow that that. Pretty much something the defense attorney know about the jurors and how might she craft her argument based on fact which jurors might be most persuadable that a Death Penalty is not warranted here . Its a very very good question. In the federal court you get to know less about jurors than you do in some state courts. I would say that. I would say theres enough experience and intuition. We all have anecdote that is thinking that this one juror would be the best and this would be the worst. We remember we all thought would be the worst juror in the o. J. Simpson case and she came down with the verdict of quitings, although she regretted it afterwards. I wonder if his age will come up or will influence the jury will influence the defense and that is he was 19 years old. Sdmrool he is now 21 years old sfwloosh i think at the end of the day that this crime is so horrific, the amount of victims so unprecedented that if there ever was a case to be considered for death sentence, this would be the case. I would say that forgive me for a minute. Weve just heard the verdict for charge 18. It is guilty as well. That is significant because that does end the readout at least much the Death Penalty charges within this case. Dzhokhar tsarnaev found guilty on all 17 of the 18 Death Penalty eligible charges, found guilty on all 18 that have been read within the courtroom thus far. Would you imagine if he does go to prison as opposed it with Capital Punishment would it likely be at adx facility in colorado which houses zacarias and Terry Nichols from the Oklahoma City bombing, vincent basiano, the crime family bosses. Do you believe thats where he would he wanted up . You know this is a very interesting question. Judges have no control. Its totally township the jurors. In this case you have somebody who would be put in the most protected place because of fear of other inmates trying to attack him. My personal view is the Death Penalty is too good for this guy. What do you mean by that . I think he needs maximum amount of suffering that one could get in a humane system in oour prison system and think each and every day about all the harm that he has done to the people. The Death Penalty is in. Its out. Its something that he asked for. He wrote it on the side of the boat. Sflool it sounds like you believe that should he be put in prison, his life would be in perpetual danger, would it not . Without a question. Without a question. Will have a target on his back. To protect him from other inmates, and i suspect he is going to have have you know one hour a day of exercise in the yard and 23 hours a day in what is virtual solitary confinement if he doesnt get the Death Penalty zoosh you have talked a lot about, alan what judy clark needs to argue here in his defense. What about what the prosecutors are going to need to argue as they push for Capital Punishment . They have essentially put their case forward in the prosecution case. I dont think they very much left to do. What, show the film again . The film is horrible. You watch that film and you say to yourself as bob said if anyone deserves the Death Penalty, this guy does. Walks past children knowing he is going to blow these children up. Then he buys a bottle of milk and goes back. The prosecution is just going to repeat it and the jury is going to say, well we heard this already. The defenses is under that he is under psychic control of his older brother. Then he tweets out stay safe. This is not somebody that is under the mental control of somebody else. It allows judy clark to put together many mitigating factors. I i dont think theyll save this guy from death because he was under the influence of his brother. Theyll use that as a way of looking at it and thinking about all the emotional factors in his life, how he was treated as a child, and then he is going to be looking to see if theres anything mitigating that could save him from what his crime clearly deserves . What could there possibly be . Theres no obligation to give advanced what the mitigating factors are going to be, and theyre not limited to the mitigating factors in the statute. They could put forward anything thats arguably relevant the system has said. Kendall, just not that we havent gone over this before but as we move to this penalty phase, how long would you say with the evidence mitigating and deliberations . Is it going to be as long is it going to take as long as this first trial did . It may not take as long but i expect it will be a couple of weeks. Prosecutions work doesnt appear to be done. I agree with the professor. They cant simply repeat what theyve already done. They could burn some of the jurors out on it. I think they will rely on a lot of victim impact testimony. Witness whos lost a loved one or limb. I think theyll try to present more of that and i think the defense is going to be very resourceful, and they may still be considering putting the defendant on the stand. Most of us looking at this believe that if they cant present him in a state of remorse, complete remorse in a way thats convincing better keep him off the stand. I do not believe this is going to be easy. I agree. I agree. Its hard to believe it was nearly two years ago to the date the boston mare thob bombing, april 15th 2013 where three were killed 2060 people injured, and among the three all three that were killed were under the age of 30. Bob, its going to be very difficult for this jury to sort of tune out the court of public opinion. I agree with that. I agree. Go ahead, bob. The prosecution would like them to be heard to express sgrooits going to come down to one or two jurors that will immediate to be convinced that the Death Penalty is the appropriate punishment. Youre going to get victims i know some of the people. The young woman who is a fantastic dancer who is largely disabled. I know others. Then theyre going to ask do you think he should die, and theyll say no. This is boston. Youre going to get victims who have been horribly hurt. Maybe even some who have lost relatives that have died that are going to say no we dont think he should get the Death Penalty if if the judge allows that question to be asked and answered. Thats a fascinating thought there that they would be asked that. I think what this is going to come down to is at the end of the day is this country one that really supports the Death Penalty . If it is he will get the Death Penalty. If it isnt, he has a chance. There can be no more horrific case than this one. Lets take a moment to i think say the names of the victims. Put them up. Weve heard a lot about gee car tsarnaev, being found guilty. The only fate is whether or not he dies in prison or dies through Capital Punishment. Lets not forget there were three all right. Count 30 guilty there. Its unanimous. Lets talk about the victims. A restaurant manager. Christy campbell. Lindsey lu an exchange student, and perhaps the saddest case of all is 8yearold martin richards, who the jurors heard the testimony from his father on the stand, and the mom went off, and i saw the lifeless body of his 8yearold son, martin richard, later on 26yearold Massachusetts Institute of Technology Police officer that was shot ask killed. Four dead. Many, many, many more injured. We now know he is guilty of all 30 counts including all 17 of the ones that carry the Death Penalty. The trial will now at an undetermined pace move to the sentencing phase at which time the jurors will deliberate whether tsarnaev lives or dies. We want to thank our guests robert shapiro, alan of harvard and kendall coffe yes, former prosecutor, as we wrap our coverage of this verdict in the Dzhokhar Tsarnaev case. Im going to move off stage and turn it over to brian. Thank you. Thank you very much. Lets get his face off there. He is guilty on all 30 counts. Only his fate is left to be determined. Were going to take a quick break. We are cnbc the worldwide leader in business news, and well get you caught up on the Federal Reserve minutes and what the markets are doing. Well be back with the markets, with the fed. Steve liesman. All right after this. 50 [ male announcer ] your love for trading never stops tdd 18003452550 even on the go. Tdd 18003452550 open a schwab account, and you could earn tdd 18003452550 300 commissionfree online trades. 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Tdd 18003452550 schwab trading services. Tdd 18003452550 your goto for trading knowhow. Tdd 18003452550 the pursuit of healthier. It begins from the second were born. After all, healthier doesnt happen all by itself. It needs to be earned. Every day. From the smallest detail to the boldest leap. Healthier means using wellness to keep away illness. Knowing a prescription is way more than the pills. And believing that a single life can be made better by millions of others. Healthier takes somebody who can power modern health care. By connecting every single part of it. Realizing cold hard data can inspire warmth and compassion. And that when Technology Meets expertise. Everything is possible. For as long as the world keeps on searching for healthier. Were here to make healthier happen. Optum. Healthier is here. Welcome back. Lets get back to the market story today. That is one that broke at 2 00 eastern time. The Federal Reserve minutes and steve liesman. You touched on it briefly. You had to cover the trial. Lets move past that. Some really surprising thoughts going through the Federal Reserve about a possibility of a june rate hike. Whats interesting is these comments are 3 months old, but we have comments from today, brian, about june as well. You have several. By the way in fed speak, there is all participants most participants, and then i think several is in the third order. Several supporting a hike. That was a few weeks ago before the weak jobs report in march. Others support a hike and two support a hike no hike until 2016. Fed gov jay powell heres what he said. There will be for the first time a discussion about whether we should raise the target range for the federal funds rate at the june meeting. We said we wouldnt do that at the april meeting, and weve said we would do it at the june meeting. And for every meeting thereafter there will be that conversation. I asked him. Its an irrelevant question. There are two jobs report between now and june. His decision on june was irrelevant. You knew you were going to take it that way. Well if were seeing i would say that nothing any of the fed members do is irrelevant. He meant its imperative. There are two jobs reports. Theres all kinds of data between now and then. If that data does indeed firm i think what im hearing from guys out there for at least fed folks is that june say possibility. Its probably the everyone is it the weather . Is it the dollar . Is it oil . Could it be remember as our theory has been in the 2 00 show for a couple of months and we have been, shall i say, widely derided for our views. By our views, i mean mine. Its basically that there is going to be a down side to the data from weak oil because it will hit jobs. It will hit housing and other things. Even if the economy is still strong the weak oil theory may give the data a weaker look and the false read that things are slowing more than they have they are. One wonder if the fed is these are the questions can see through that. I think they are thinking theyre going to see through that. I think they feel like theres momentum. What i also want to point out, brooen, is the market has seen through that. Guys if you could put up an intraday on the dow or the tenyear, whatever you have there first. You can see a pretty substantial reaction. The dout of course and the s p went down. I think it was eight or nine points, and then it came back up. I think its either flat on the day or maybe down a point or Something Like that. There you go. Theres the roupd trip right there. June is in play. Thank you. A lot of different stuff going on here. Lets go to the new york stock exchange. Bob, we were up 21. Federal reserve stuff came out. We fell just a couple of points. Were sort of in the middle. Is there a reaction to the Federal Reserve down there . Is it really steady as she goes . Utility tell you why it came back. Remember these minutes, brooen were march 17th and 18th. This was before the disappointing nonfarm pay roles report. The feeling down here is that if we were to have this fed minutes fomc meeting today, the minutes would be even more dovish today than they were just several weeks ago, and i think a lot of people as steve said saw that, saw through that and thats why the market essentially has come back. I keep getting asked, what happens on fed days. Theres been a number of these. 81 released since 2005 in the last ten years. The s p has been positive 59 of the time and an average return of flat completely and even the yields on the tenyear have been only positive half of the time and very very meager returns as well. The bottom line is theres not a lot of big movement on the markets on fomc minutes. Brian, back to you. Very interesting stuff there. From bob and thank you very much. Lets get the bond market raikz reaction from the latest Federal Reserve meeting. We saw a little buying come into the bond market. The yield is back below 1. 9 following the tenyear. I didnt see that the tenyear really did much. If you look at the twoyear shortest maturity. Being, on the coupon curve, it definitely saw rates move up a bit. If you look at the long end of the market rates were already coming down, and we had some volatility. Really the issue here today is about the curve. If you look at five to the 30s, no doubt about it we flatten three to four basis points which made sense. All have you to do is have a discussion about whether you may raise rates spshgs this seems to be what happens. What synthesized all of that you can clearly see it was one of the winners as well. Holding on to some of the gains. Will the fed actually raise rates . I dont know. I think that the market has a pretty good handle that theyre not sure either. Well we do know rick the fed will raise rates. It just may not be this year. Or it could be . You know at some point. If i told you that or maybe not. If i told you that somebody is going to buy your house for sale it might be be this year. It might be next year. Im not sure thats a whole lot of information. What if the Fourth Quarter we go into recession. You know what i know its real easy to talk about all this as if we really have a handle on what that group of people you know, are doing that are replacing aggregate tens of thousands of people that used to have price discovery to come up with the actual levels but irthink its going to be a whole lot messier than they lead on. Price discovery. I havent heard that phrase in a while. Theres a reason why. Your point is well taken. Exactly. Your point is well taken. Exactly. That pounded oil. Theres some then you get into your 11 million barrel inventory build, and i told you yesterday if we get a monster number, youre going to see selling. Thats exactly what happened. Also very interesting to note that the fed minutes tanentially selling intensified towards the close. One of the reasons is that because the dollar started to strengthen. The dollar hadnt been doing much all day, and that sends oil usually to the down side as well. This is a notion that weve got the fund mentals versus geopolitical risk on the table. Of course, the geopolitics. We cant control, but when it comes to fund mentals, a build like this shows theres a lot of supply in the marketplace. Saudi arabia comes out and says it has record output in march. Thats because saudi arabias average cost per barrel is estimated somewhere between 3 and 5 per barrel. Thats right. So that is why the saudis have said they can with stand some of this pricing pressure. At the same time you and i have discussed this before when it comes to their social spending. That certainly brings the cost up somewhere to around 08 a bir barrel. They are probably being hurt by this, and its interesting to see that they are digging their heels in. They are Still Producing more. You know they raised prices to asia the other day saying that demand is ticking up. Potentially that may be a place where we see recovery but i really think and analysts that i have spoken to say we need to see more evidence of that. At 50 a barrel saudi arabia is doing just fine but, jackie this is important, they might have to downgrade from 500 foot yachts to 350 foot yachts in the future. Well that definitely is that definitely is british soccer teams. Jackie, thank you very much. By the way, as oils a one of its worst days in a long time down over 6 every oil stock on my screen except for one, Occidental Petroleum is down and occidental is up 1 cent. Power lunch will be right back. Why pause to take a pill . Or stop to find a bathroom . Cialis for daily use is approved to treat both erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. Ask your doctor about cialis for daily use and a free 30tablet trial. Good afternoon, everyone. Tyler mathisen. Todays top breaking news the guilt on all 30 counts of Dzhokhar Tsarnaev in connection with the boston bombing, a bombing that cost the lives of several victims. The trial guilty on all 30 counts 17 of which carried the Death Penalty. The trial moves to a Death Penalty phase. The judge has said that that could begin as early as next week. There will be no Court Tomorrow or the next day. The jurors will get a couple days off. The jury will then be reunited with the alternate jurors. A statement from bostons mayor within just the past few minutes saying that im thankful that this phase of the trial has come to an end and am hopeful for a swift sentencing process. I hope todays verdict provides a small amount of closure for the survivors families and all impacted by the violent and tragic events surrounding the 2013 Boston Marathon. We are waiting to see whether any of the Prosecution Team or the defense team comes out and speaks to the microphones arrayed out there, brian outside of federal court in boston. Brian sullivan, back to you. And if and when this happens, tyler, obviously we will carry that live. Thank you very much. For now lets get more reaction to that trial. Bring in attorney daryl cohen the former assistant attorney in miamidade county, florida, and former assistant District Attorney in atlanta. Thank you for joining us. Your reaction to the verdict . Well thank you for having me. My reaction to the verdict is this is exactly what the jury should have done. This was terrorism that equalled murder, and it was mass murder and they had to send a message to him and to anyone else who may decide this is the way to go. Do you believe though that the 11 hours which is actually quite a short amount of time for a trial of this size in a 30count case but do you believe the 11 hours tells us something perhaps of the way the jury is thinking about sentencing . Well i think because it was minimal amount of evidence put up for the defense, the 11 hours was appropriate. I suspect there was some back and forth with the jurors about the Death Penalty and some that had a more difficult time than others, and, yes, i think the 11 hours being a very brief amount of time for the jury to deliberate is telling us that when the penalty phase comes as early as next week that theyre going to find that he should be killed, he should be put to death. And do you believe thats ultimately what will happen that and i just want to remind our viewers that in sentencing it does have to be unanimous, all 12 jurors will have to decide on Capital Punishment. Darryl do you believe thats what will happen . I think thats exactly what will happen. I would be very surprised if it was otherwise and quite frankly id be very disappointed. The only real defense here was not the ifs and the whats and the whens. They conceded that. We saw him crawl out from underneath the boat blood soaked on that night after the shootout in watertown, massachusetts. The only aspect of this is trying to humanize him, trying to say maybe that he was under control of some sort mental control or scared of his brother, wharf it might be. How do you do that . How do you think because were not privy in the arguments, darryl. If you had to take the other side and try to defend him and im not even going to say his name, how would you do it . Well the first thing i would do is try to show that his brother was an evil empire all unto himself. The second thing i would do is show that i was the little brother, and i idolized my older brother for whatever the reason and he could do no wrong and when he told me to do something, i did it. Now, what else would i do . I would bring in some neighbors, some family to show that he was a little boy and he was beat up a little boy he was abused a little boy as he got older never grew up and was just a sad state of affairs and not a murderer and not a terrorist. Yeah, and i understand its a tough position to be in to try to do it. Just a question of whether or not he will serve life in prison or Capital Punishment. Darryl cohen, thank you very much. Thank you for tuning in to power lunch. Difficult day, boston strong, thinking about the victims thinking about you boston. Were with you. Closing bell picks up coverage right after this. Your moms got your back. Your friends have your back. Your dogs definitely got your back. But whos got your back when you need legal help . We do. Were legalzoom, and over the last 10 years, weve helped millions of people protect their families and run their businesses. We have the right people onhand to answer your questions backed by a trusted network of attorneys. So visit us today for legal help you can count on. Legalzoom. Legal help is here. Hi and welcome to the closing bell, everybody, on this wednesday. Im kelly evans at the new york stock exchange. And im Bill Griffeth on what has turned out to be a very busy news day which well try to fit in in the next couple hours here. Stocks meanwhile, getting a temporary boost from the fed minutes as the dow tries to close in the green slightly for the third time in four days. The pros will be weighing in on when the fed finally pulls the trigger on its first rate hike in nearly a decade. Oil is plunging after a