Transcripts For CNBC Closing Bell 20150220 : vimarsana.com

CNBC Closing Bell February 20, 2015

Territory record territory. The nasdaq worth keeping an eye on inching closer to 5,000. Its been the outperformer. We may be talking nasdaq 5,000 by next week sometime. Lets get to the Closing Bell Exchange exchange. Kim forrest is here, so is Peter Andersen from Congress Wealth management. Kevin carrone, ben willis from princeton securities joining us on the floor and Rick Santelli is in chicago. Lets start with Michelle Carusocabrera. Is she there . Im here yeah. So we have an agreement of sorts. Its just an extension, but do you sense were making some Real Progress this time around . Well the headline is that the greeks have caved on nearly everything it appears. They were never going to be subject to more reviews by the eu, the im f, and the ecb. Now theyre going to be subject to reviews by the eu the imf, and the ecb. They were never going to agree to commit to the current program. They have agreed to commit to an extension what happened to all the saber rattling when the new regime took power. Greeks stopped paying their taxes, started approaching a fiscal crisis. He was going to have to start deciding do i pay pensions do i pay the elderly, what do i do . I dont have enough cash and i cant borrow from the Capital Markets to cover the loss. Add to that the fact greeks were taking money out of the bank so their bank its were runs were running into trouble. They were pushed into a corner and the eurozone did not cave as the greek finance minister thought they would. They have agreed to all these things. What they get in return for that two different piles of money that were theirs if only they stuck to the program and this administration so far hadnt. By the way the previous one hadnt either. It gets them nearly 10 billion euros to help them get through a big hump of payments they have. They have to pay back the im f the ecb, and they have to pay their bills in greece as well. The key is the ecb payments arent due until months five and six. So what exactly happens after four months isnt exactly clear at this point. Yeah. Its a remember the phrase kicking the can down the road. Its like here we go again. How is this going to go down in greece . Will it be enough that this Prime Minister who promised all of these things you just laid through is backing down to get the monies . Is there going to have to be another confidence vote . They have a phrase which literally means a back flip but a little rougher around the edges if you know what i mean. There were a lot of predictions that is what this government would have to do because they would be cornered but your question is a key one, sarah. Lets see what the greek population does because it looks like theyve caved. They have worked so hard on the words. Greeks are very good at words. They will say is just a loan agreement. Lets see if they can really convince their constituency that this isnt as bad as it looks. Ben willis we have had an incredibly narrow week in the stock market. I mean is this what the market was waiting for . This is the first day weve had a decent amount of volatility with this rally were getting right now. It is an expiration but really the key to keep an eye on and take a look at the yield on the 10year, back above 2. 1 which is extraordinary move. If you look at the interday chart on the 10year, its actually far more dynamic than any of the equity charts you can put up. But i think the situation in greece is all weve really gotten truthfully after its all said and done is weve kicked the can down the road. Were going to revisit this. We know 10 billion is the price for a dreamer in greece of whether hes going to set aside what he was elected on. Weve got a fourmonth postponement until were going to be back having the same discussions. The fact of the matter is greece never should have been allowed in the eu. Once we figured out a way to have a graceful exit and maintain the rest of the eu so we dont have complaints from the other participants particularly ireland i think we will be faced with that discussion in the next four months. Kevin, is it enough for you . Youre focused on the u. S. Economy and the u. S. Stock market. Is this going to be over in your view this sort of temporary volatility headwind from the markets from greece . No i dont think so. I think what your previous guest said is exactly right. It does push it off a little bit but doesnt resolve anything. It might be easier to get to a compromise because you will have german elections and maybe more seasoning in terms of the new administration in greece. Its all about politics at this point but it doesnt relieve the fact theres still an enormous debt burden and that debt burden will stay with that country forever as far as we can tell. It doesnt change anything really. My point is though weve learned at this point when it comes down to the wire its in everybodys best interests to come up with a deal. The greeks will do it or the europeans will do it. Weve seen this game so many times before and it pays to just sit it out and wait in the markets, especially when youre talking about u. S. Stocks. Well thats exactly what im saying. And to extent that it keeps markets calm youre looking at markets here in the United States that are at record highs and ultimately investors are feeling reasonably good about things in the stock market. Bond market not so much. You look at the long end of the yield curve, its fallen sharply. Credit spreads have widened. Break evens on inflation rates have fallen dramatically. Theres a bunch of cross currents here but certainly getting a little bit of breathing room on greece, at least as a near term catalyst is better than the other outcome but it doesnt solve anything long term. I think it bears repeating, anybody joining us in the last couple minutes to check on the markets. Theres a News Conference under way in brussels outlining an agreement now between the eu and the greek officials to extend their current loan situation for four months not the six months they were after. On monday they will have to submit a list of reforms that theyve put in place to justify all this in which case a Conference Call will be held by european officials again on tuesday, and then they will figure out whether this thing will hold at that point. Were looking at brussels one of the european commissioners in charge of making this deal. Hes in charge of economic reform there. Peter andersen remind me again, were you willing to buy european equities early on in this year and does this even strengthen your willingness to want to buy europe at this point . Well, theres a couple things going on. Certainly we would like a longerterm agreement, but, you know, you cant confuse investing with politics and diplomacy, right . As invests as investors, we have a trading mentality. We want things in black and white. We want decisions to be fast and definite. In diplomacy and politics its a little bit different. Its longer periods. You have to really factor in all the elements of negotiation, and to me four months, i think thats a good sign. I think that thats showing that the euro the eu will probably be very very resilient, and this is a good test point. I know weve been there before but its another test point. And i have always been suggesting to stay somewhat engaged in european investing because you never know frankly, how the thing is going to turn out, and thats the key to diversification. You dont always want to stay 100 in euro nor do you want to stay 100 in u. S. Stocks. You want to be a blend. The euro is certainly reacting as we speak heading to 1. 14. Michelle what comes next for greece . We have the statement and you were talking about this a little bit. By monday greece has to give a list to the euro group of the reforms they want to do, any kind of structural changes based on the current arrangement, and then on tuesday the euro group will decide via teleConference Call whether or not they think these are okay or not. Thats going to be a key test because, remember, as you were talking about, sarah, some of the things this greek government calls reforms are considered anything but by other mens of the euro group. Weeb going were going to have to see if it meets the conditionality set by the other ministers. You see Christine Lagarde addressing reporters there. This will be a key decision about whether they get any of the money sitting there that they are waiting for. Kim forest whats your first blush on this . Weve all been watching this. Weve gone from this is so important to markets up 150 points on this to earlier this week that the greek situation was a side show for the u. S. Market. Does it matter to you as a u. S. Investor right now . Well it matters in two ways. First, as you noticed or as you have been noting the market reacts to this, and i would say the market overreacts to this because the market always overreacts in the short term. In the longer term it really is key to see whether or not this country, it doesnt even matter what country it is really but can a bad performing participant in thee u, can it escape . Thats the question. Everyone in the eu is trying to say no they cant and how make this bad actor behave well and at least attempt to pay back some money or borrow less or Something Like that. But, you know, thats really key, is the eu going to stay together. At this point theyre saying yes. Politics are driven by the populations ultimately and well see in five years whether or not everybody has the resolve to continue. Yeah good point. Politics in all of the countries. Rick santelli you heard ben willis talking about the treasury market. A lot of folks were watching bond yields as the litmus test to how sentiment was reacting to the headlines coming out of brussels. Right now were seeing the reaction. Well, i know weve had some volatility and know mr. Willis is probably a bit bored with the lack of volatility in stocks but yes. If you look at closes this week so far weve settled between 2. 07 and 2. 13 every day this week and today looks like no exception. So it really isnt going anywhere fast. The important thing and why everybody should Pay Attention is because 2. 17 is where we settled last year and we havent had a bond market go in the red for a long time. And with regard to greece, i so completely disagree. The euro dollar hasnt dunn nearly as much as all my trading buddies thought it would. Second, you had the dax for the first time close above 11,000 by one point. Today it closed 49 points better. That speaks volume to how important the canary is in the coal mine. The toxic gas in the coal mine is important and that will be years before we know but im sure that list michelle referred to is probably a xerox copy of the reform list theyve submitted when they wanted money. I dont see anything changed. I think the greeks won. Ben, very quickly, you mentioned this is expiration day. What are you expecting to happen in the next 48 minutes here as we head toward the close . The bias is still to the upside. You should see buying imbalancing dos imbalancing imbalsancing goss into the close. You have to keep an eye on what has been happening in the russell russell, the dax, and the nasdaq. The markets have been rising just not necessarily the ones that are usually watched by the investors at home. The markets have reacted positively even through the shiny thing that today were calling greece. Okay. Very good. Thank you all for playing ball here as the news was breaking out of brussels right here and michelle has gone back to monitor the News Conference. Well check back with her as news warrants on a pretty newsy day all of a sudden. And were looking at the highs of the session. Up nearly 150 points on the dow. Good enough for an alltime high for the dow and the s p and lets remember were only 46 45 points away from nasdaq 5,000 as we head toward the close here. Up next a top wall street pro scouting potential winners from the rise in what hes calling health care consumerism. You may be surprised at some of the names on the list. Stick around to hear them, including some public companies. By the way, apple near record highs again today. Its reported that they may be looking into car production fueled by tim cooks desire to keep up with google and its selfdriving vehicle under development right now. Its apple versus google. Thats coming up in a little bit. Stay tuned. More closing bell 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. So whats going on today . News alert message email calendar update most of us admit to being overwhelmed by information at work. Thats why ibm created verse. It uses powerful analytics to uncover hidden patterns in your email, calendars and social feeds. It continuously learns how you work. And helps you prioritize the people and projects you need to focus on. Theres a new way to work and its made with ibm. My name is tony sartorio. Im a lineman for pg e out of the Concord Service center. I have lived here pretty much my whole life. I have been married for twelve years. I have 3 kids. I love living here and i love working in my hometown. At pg e we are always working to upgrade reliability to meet the demands of the customers. Im there to do the safest job possible not only for them, but everybody, myself included that lives in the community. Im very proud to do the work that i do and say that i am a lineman for pg e because its my hometown. Its a rewarding feeling. Rally day, and its just bsh been in the last 90 minutes after word came out of an agreement between eu officials and greece to allow them a fourmonth loan extension while they justify the reforms that they want to put in place to allow them to take in 10 billion euros of new money to help kind of jump start them at this point. Right now the dow is up 135 points. 20 points off the high of the day but it is enough for an alltime high for the industrial average. The s p comfortably back above 2,100 at this hour. Also in record territory. And the nasdaq is less than 50 points away from nasdaq 5,000. Earlier the dow was down as much as 100 points. About a 245point range today. And its all on the greek headlines. Our next guests says consumerism is rapidly on the rise in the Health Care Industry. Rbc released an exclusive report on which companies are set to capitalize on that particular movement. David francis was head of the report and also joining the conversation is our own jon fortt. David, thanks for joining us. Tell us the effect that obama care has had on the Health Care Industry and why its more consumer jor gentoriented. Thanks for having me first. Its as much obamacare as it is general economics in the marketplace. If you look how much Health Care Costs have expanded over the last several years, employers are doing a big move of trying to push the cost of health care to their employees and ultimately that becomes the consumer. If you look at the number of consumers that have had their health care deductibles go up to a level thats over 1,000 over the last eight years, that number has exploded fourfold in that period of time. Over 40 of americans today are now having to pay high deductible its fors for their health plan and for the f. I. R. S. T. Irst time in seven decades were paying more out of our own pocket for the health care and its changing the dynamic. Before we bring in jon, tell us the names you think are set to benefit from this opportunity. Our favorite name of the group is web m. D. They have the leading consumer platform in the marketplace where theyve got over 60 million unique users that come to the website to get General Information on health care. We believe that traffic will leverage them into more Additional Solutions and opportunities for consumers to get more information. Several private companies in the space are doing very well also. The reason youre here jon, is because we just showed google and apple. Google ventures, theyre making a lot of investments in medical care and apple, you know, can be a big part of that as well. So youre seeing some nontraditional Companies Take advantage of this consumerism, arent we . A lot of them bill. Take a look more broadly. You have things like fitbits out there. You have these Online Services that can help you manage your physical activity, see if you need to move around more. Apples watch is coming out in just a few weeks. A key component of that is health kit which allows to you gather Blood Pressure data your blood type. All sorts of data like that and selectively share it with various Health Care Providers and some of the Broader Networks like humana have said theyre going to open up to this. What that comes down to is a new type of company, Tech Companies could have one of the most intimate relationships that people have with their health information. No longer will you have to go into a Doctors Office to get tested to some degree. Youll be able to test yourself and people might make more choices on what kind of Health Provider theyre going to go with based on how tech savvy these providers are. Thats a great point. If you look at where the real innovation is happening in the marketplace, apple and google are absolutely at the forefront of it given the capital and just the general traction they have in the marketplace but there are several private companies that are doing a tremendous job in this marketplace. There are issues like telemedicine where Companies Like doctor on demand and md live are allowing consumers to go online for a consult rather than going to their doctor. David, while we have time its not just Digital Health thats getting all the money. To me readin

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