He says we could see a 20 move lower in stocks. His view that he wrote about on cnbc. Com has caught fire with readers. Now hell be here to make his cl case exclusively. Now cocacola defending itself on the program. David winters will be here this hour to respond to what coke is saying earlier this morning. This is a battle thats now escalating. You wont want to miss the latest chapter. Again, thats an exclusive interview coming up. All about compensation and governance. Of course, tomorrow all eyes will be on the employment report for the month of march. But what if we told you the key to americas jobs market rests with exconvicts . Do not scoff. Theres data that explains this and something that new fed chief janet yellen did this week has highlighted that very issue. We have a special report coming up today on closing bell. Heres where we stand in the marke markets. The dow off 23 points at 16,549. Take a look at the nasdaq, which is off by more than 1 . Its almost 50 points lower today. Finally, the s p 500 after hitting a new high is giving up about five points today. Lets talk about this market in our closing bell exchange. Jim lowell is with us today from adviser investments. Larry mcdonald from new edge. Weve got frank braddick. And our own rick santelli. Welcome to everybody here. Jim lowell, would it matter if we keep trying to set a new high for the dow and we just keep failing . Eventually the technicians are going to tell us were putting in a double topper, something here wont look good. Well, a double top or not, this is a market that cant be kept down. The reality is we see a lag in the multinational Balance Sheet blue chip stocks. We think those have real room to run, especially late during the year, especially if not only the u. S. Recovery but the Global Recovery remains at least on par, if not picks up a little bit of steam. We definitely share Janet Yellens concern that the jobs being created arent quite good enough to call us recovered, but we are clearly still in an economy thats recovering well and a market thats going to keep pace with it. Larry, youve been cautious here, have you not, on u. S. Equities. Where do you stand today . If you look at the s p, we did some damage on the s p and the nasdaq over the last month. I think over the last eight days weve repaired a lot of that damage. The bull bear battleground at 1878ish. So far the bulls over the last five days have improved there. I think above 1880, its very difficult to be bearish in the short term. And frank, what do you think about the jobs number tomorrow . There are some growing expectations. Maybe we might get a surprise to the upside here. What do you think that does for the Federal Reserve . I think it makes it a lot easier for the fed. I got to tell you, bill, im concerned. If you look at the Labor Participation rate, its still lagging. Im probably much more on the soft side. Im afraid not so much of a surprise to the upside but a surprise to the downside tomorrow morning. Its not a question of the number of jobs. Its a question of the quality and kind of jobs that are being created. If its temporary jobs, if its hair net and name tags, thats not going to be enough for her to get too comfortable. I think tomorrow inside the data where the surprise could be is the quality of jobs. Maybe we see a slight tick up there. That would be encouraging. Rick, i cant help but also wonder about jeremy stein leaving the Federal Reserve. Hes going to return to harvard. Hes the guy whos really been raising issues about financial instability, keeping a close eye on some of these metrics even as Janet Yellens been on the side of caution. Oh, yeah. No, jeremy steins a huge hero on this trading floor. Some of the Research Pieces hes penned about the risks of some of these programs, especially qe, are amazing. I think were losing a good voice. Then again, Stanley Fisher is coming in. Great respect for him as well. Real quick, let me weigh in on the equities. Maybe we could have a key revers reversal, but wed have to close below yesterdays lows. I know that 16,506 was yesterdays low on the dow. If we close under there, you really need to wake up. In terms of the markets, you learned a lot today from treasuries. Yields basically spiked on some of the data this morning. All in all, theyve eased back. The curve continued to flatten. Fives are still hovering basically at september highs. You have 30 year that cant keep up with the rest of the curve. Thats been going on. The euro definitely lost ground after the ecb. They can hint about qe. They want to bring their currency down, but can they get to the logistics of what that would entail in terms of buying these securities . Its just craziness to see a spanish ten year even in the neighborhood of a u. S. Ten year. Theres a lot going on with europe that doesnt quite pass the smell test in all in all, were looking at a treasury market with a flattening curve. No matter how you interpret it, its not a good thing with regard to the economy. Although, its probably pretty complicated. We dont know where rates would be if it wasnt for the fed. Yep, thats for sure. Stand by, even. We have some breaking news. Itll be fodder for discussion. Interesting development in the wake of the controversy about highspeed trading and if it rigs the market. Eamon javers with that story. Thats right, bill. What cnbc has learned is later this afternoon, Interactive Brokers is expected to announce its launching a new piece of its service, which is going to allow its customers to connect directly to iex, that new Trading Platform thats been highlighted by Michael Lewis book flash boys. Interactive brokers saying they dont necessarily want to take a side, but they want to offer their customers to connect to iex, which is marketing itself as a Trading Platform where customers cant easily be taken advantage of by highfrequency traders. Were going to see that announcement later this afternoon. Interactive brokers saying customers will have a choice. They can let Interactive Brokers smart router decide which exchange their orders go to, or they can click a button and say, i want iex, im sending all my business that way. A new option in the market, guys. Eamon, thank you. Lets talk about the brokerages. Larry, lets put up some of what the discount brokerages are doing today. This is calling into question the extent these guys are paying for order flows. Theyre all in the red today. In some cases significantly so. Theyre the discount guys. They say, yeah, they might pay for order flow, but theyre able to keep their services quite cheap as a result. Larry, what do you say about this pay for order flow practice . Does a Retail Investor get as hurt by this kind of behavior as the highfrequency stuff going on isnt the market . I think cliff with aqr said it well today. The Retail Investor has never in the history of the Financial Markets had it so good. I mean, i was trading equities in the 90s. I remember 50, 60, 70 cent spreads on intel, microsoft and cisco. Now were down to a penny. I just think at the end of the day you cant blame the discount brokers. The Retail Investors never had a better deal. Rick, what do you think . Will there be a stampede if brokers start to hitch their wagon to an iex to try and at least give the perception that investors will have a level Playing Field that theyre working with now . You know, having a little bit of skin in the lower cost to do business is a funky dynamic. I think all in all, im very pleased to see that alternatives are being offered. Thats actually the free market trying to be reborn into this space. Let end users make a choice in a fragmented, distorted, horrible marketplace. Even if we knew how to address these issues bugging people, the fragmented structures many have talked about really wouldnt lend it to happen. Some of these subtle changes need to occur. The easiest way to make all this go away is just charge a little bit to cancel orders. It would disappear. Or some time of margin to put some flesh in the game. All these cancels, no money up, no money at risk for these traders making markets. Yes, i think were on the right track. Its getting taken care of just by shining a light on it. Jim, what concerns have you heard from clients . What do you tell them . Should they pursue an option like what Interactive Brokers is offering and use iex . We tell our clients not to worry. The reality is anyone who can front run a best of, good luck to them. Were getting good prices across the board. The hands of the savviest managers. We know Michael Lewis is good at rigging book sales, but a lot of his story line was from years ago. It doesnt feel current enough for us to be concerned about. But wait a minute. Just because this is a practice people knew about doesnt mean that its not wrong or that people shouldnt be aware of whats really going on in these markets. No question about it. And theres a lot of awareness. Theres a lot of rumor. Theres a lot of fear behind the rumors. But the reality on the ground is i dont think anyone that i know of has developed a program that can outsmart the best managers we invest in. All right. Its not a question about smarting. Its a question of slowing them down a little bit. Thats all. Well, and i mean, i dont want to prolong this because we need to move along, but it is a big question. I still go back to thinking about the average investor watching programs like this where we debate this very eclectic issue of highfrequency trading and they wonder if it affects them. For the most part, i dont think it does. Does it, rick . The average investor is not theres an easy way to understand it. The section im worried about that can go four years with a 99. 9 success ratio, call it whatever you want, its not trading because trading deals in risk. But rick, youre talking about virtue. What they do to some extent is act as an intermediary providing liquidity no, no. All of them went through these periods. All of them being who . Oh, listen, theres about five or six really big boys in this space. Rick, the long winning streak isnt something where its about you and i making trades in the market every day and winning 100 of the time. I didnt say it was. Im just saying it isnt trading. Whatever it is, it isnt trading, okay . Right. No, its the kind of behavior that has to be profitable. Theres no risk. Listen, in the movie casino even though the mafia was skimming, people were still going to the casino. They were still winning at blackjack. They were still happy to be there. It still didnt make it right. All right, guys. We got to go. Thank you. An important topic. We all need to keep an eye on it as we move forward. Thank you for joining us today. About 50 minutes left. The dow down 19 points. Were probably on jobs watch right now, i would think. As we go into this final hour of trading, the thinking will be on tomorrow mornings job report from the federal government. Well wait for that to see what happens. In the meantime, mylan surging over 70 from last year. The ceo is here next. Today its down with many drug and biotech names. Well talk about different issues affecting this company. Plus, well get her reaction to the criticism that drug prices are skyrocketing out of control. Is she worried about Government Intervention into the drug space . Also ahead its important to note that Compensation Committee sets the compensation for our company. So the Compensation Committee is comprised entirely of independent directors. That was a top lawyer for cocacola firing back at activist shareholder David Winters who calls the beverage giants executive Compensation Plan excessive in light of cokes slow Earnings Growth these days. David winters, he will be with us to respond to that coming up. Also ahead, wearable tech failing to wow consumers so far. You only need to look at the slew of resales on ebay. Someone here is banking on apple hitting a home run when it comes to new gadgets that will hit this space. When, ultimately, will that be . Well get the best ideas from the pros when we come back. Dont go anywhere. Aflac. Aflac, aflac, aflac [ both sigh ] ugh you told me he was good, dude. Yeah he stinks at golf. But he was great at getting my claim paid fast. How fast . Mine got paid in 4 days. Wow. Thats awesome. Is that legal . Big fat no. [ male announcer ] find out how fast aflac can pay you at aflac. Com. [marge you know, theresut how fa more enjoyabley you way to get your fiber. Try phillips fiber good gummies. Theyre delicious, and a good source of fiber to help support regularity. Wife mmmm husband these are good marge the tasty side of fiber. From phillips. All right. Heres where we stand right now. The dow needs to gain only 3. 76 points to close at its first record high of 2014. Not happening though right now. No, it is currently down 18 points. Bertha coombs, what are the stories driving this market today . We have a number of them. Were going to begin with petroleum, which surged after announcing it will pay 1. 15 billion to settle environmental claims in the tronics case, which badates back to 2009. Barnes noble losing ground ending a threeyear bet the struggling retailer would emerge as a dominant seller of ebooks. Its currently trading lower by more than 14 . And the selling in netflix continuing after hitting its alltime high on march 6th. The stock has dropped more than 100 points or about 20 . Talk about a losing streak. Its down 19 of the last 22 sessions. Losing is the new black, apparently. Its the first day of trading on googles classa voting stock. Topeka capital raised its earnings estimates for the company, presumably on the main stock. Back to you. I dont see a whole lot of selling in that classc shares. We were talking about that yesterday, whether the nonvoting shareholders would throw a fit and unload their shares. Not happening. All of a dollar of a difference. Fascinating experience though. Anyway, meanwhile, mylan has seen quite the surge in the past year. Its up almost 70 , down about 2 today. The overall sector has been weaker, but some say march 20th letter from democratic congressman harry waxman to the ceo of gilliad sciences for pricing a new hepatitis c treatment over 1,000 per pill has something to do with secular pricing pressure in the space. Maybe a move to cap drugs in the business or just put pressure on them. We get reaction on that. Joining us exclusively, back with us today is mylan ceo heather bresch. First, we know drugs are expensive. Is there are they too expensive . Are they going up in price too much . I know who im asking here, but is there a need to revisit how drugs are priced right now . You know, we have always been a proponent of the open market. The free market system. Its whats built this country. I dont believe price controls are the answers. What i do believe is the answer is making sure the pathway to make affordable medications on to the market. Thats where mylan has spent its life fighting for that access to get affordable medicines. We see all too often were held off to the market longer than we should be. Patent challenges. So i believe the answer and were going to see that in biologics. Tell us, speaking of some of the challenges, youre talking about other Drug Companies as well. Its not just about regulation. So how difficult is it to move forward, for example w this multiple cler row sis drug where youre trying to get something on the market. Yes, so again, fighting to get affordable alternative to multiple sclerosis drug on the market. Absolutely believe that at this time the Supreme Courts decision to listen to their me addition does not change our expectations or plans. Which is to bring that drug to market. A jeer in rick version to market. Correct. And that would happen later this year . The patent expiration is may 24th. Wow. So thats coming up. You on the market may 25th . We would like to be on the mark at formation. Thats as far as were going to get you on that one. What impact will the Affordable Care act have on drug pricing, do you think, if anything . You know, i look at the obamacare as being incremental to our industry. I think the more you can give people access to health care, the more ability they have to have access to the medicines they need. You know, i think overall obamacare has served as a catalyst to get this country talking about the right things. I think those right things are consumers getting engaged in their health care. Thats driving you know, we are the best shoppers in the world. Well drive low price and high quality. I think that if consumers can get engaged at that level, that would do the same in the pharmaceutical industry. And what are your plans . What does a pipeline of mylan drugs look like for the next couple years . We have a very robust pipeline. Were bringing some very unique products to the market. Very important products that will be coming to the market as well as a voluminous amount of launches. We have over 400 products here in the u. S. , over 1,000 around the globe. Our ability to bring scale and efficiency at the high quality. Im sure as youve seen, a lot of disruption in the supply chain with, you know, exports being banned. Weve really pursued fda and been an advocate to get that one Quality Standard. If youre going to sell product here in the United States, your facilities and the medicine need to meet the same standards we have if youre making the product in the United States. But circling that back to the Affordable Care act, with the government more involved in the process as a result, do you expect them to be looking over your shoulder that much more when it comes to pricing a lot of these drugs in the pipeline . Again, i cant speak for congress. What i would say is that i would rather them focus their attention on making sure the Quality Standard is the same, making sure t