Then when more word got out object this story that it was actually a ship flying the Marshall Islands flag not the u. S. Flag ally of ours but its not our ship market came back again and resumed the day as if nothing happened. And yet that still tells you something about where the markets worry spots are. Meantime apple hit an alltime high today on the back of its blowout Earnings Report. That was early on. It has since moved lower. Its down 1. 9 now but we have the details plus why you might own apple without even knowing it. Earnings also getting a boost from obamacare. Rising drug prices could be cause for concern. We have the aetna ceo joining us with more details. I love this story, we both do. Would you trust a robot with your financial future . One Hedge Fund Manager says that day is coming sooner than you think. We have more on that story. Both sides, the Hedge Fund Manager who likes the idea we have a fund manager who really really doesnt like that idea. No robot joining the segment yet. With an hour to go the dow is up about 50 points on the session. The s p 500 lagging a little bit, up 0. 2. The nasdaq down by apples performance there. Its off just 0. 10 . Its at 50. 54. As we discussed apple pretty much giving back the gains it saw yesterday. Yep. Well talk about that in a little bit. First, Closing Bell Exchange for today. Joining us today is Quincy Crosby from Prudential Financial and peter costas is here at the New York Stock Exchange. Peter anderson from Congress Wealth management and our own Rick Santelli in chicago. Peter costa, lets talk about this report today. As kelly said this really showed what you know, concerns the market these days. You had the selloff in stocks. You had a big rally in oil at the same time which was then wiped out. What did you make of that . It just shows that the market is at a very tenuous level here. I think its topee. Any time you will see any kind of news reports that might impact the market they just get it gets exerbiated. We knew what you meant. The market will sell off quickly because were at a level where, you know anything that can move the market is going to move it very quickly and you know, it rebounded because obviously the reports were false. Right. But it just shows that we are at a toppy level. Quincy, what are your concerns . Do you see all this as an opportunity to buy names on your list . Probably not yet. We want to see what the fed is going to say tomorrow in the statement but even though everyone expects it to be a very neutral statement it has been clear, kelly, that they are getting the message out that they would like to begin normalization sometime this year all things being equal. And they are worried about the Market Reaction. The fact of the matter is there will be a Market Reaction and if we dont get the growth that goes along with this toppy market you have a market that is due for a nice pullback. Thats when we would like to add to our positions. You know peter anderson, im glad quincy just said that because a lot of people feel like there will be market rekz when the fed does begin raising Interest Rates. You point out an interesting you ask an interesting question about that dont you . Well, i hope its interesting. You know i think weve lost our perspective just maybe a little bit on this Interest Rate question. Weve spent a lot of time over the past couple of years, right . And then you really put it in perspective, if you look at Many Companies and you just model their financials their income statement, and you add in a 25 basis point increase you know it really doesnt impact the operations of the company that much. 25 basis points according to my estimation is probably about a 2 increase in interest costs. So most companies can take that in stride. Case in point today, perfect dmas point is apple. I mean theyre rated aa plus. So if rates go up 25 basis points, thats not going to be an issue to them. However, the caveat here is if there are increasing campaigns of Interest Rates getting hiked, sequentially, then i start to worry worry. If its just one rate increase im not so sure that its really going to impact most of the companyies out there. Many people pointing to when the fed hiked rates in 2004 saying that was hardly the end of the stock market rally the last time around. This is not the new 2004. This is 2015 with 35 trillion more go ebl than 2007 with central bankers and pointy merlin hats making strange brews and test tubes, it is not all a comparison. If it was the notion that the markets were going to price in 25 basis points but theyre going to be much more digital about normalization in general. What if apple stock drops 100 . What about all the companies that bought their stock at alltime highs, should there be a correction . Theres a lot of ways we can go on this and nobody knows the answer. But we will get a chance to live through the answer. I will tell you, if you look at todays 30th day since the march 15 statement, we have 1989 ten, range for the 30 sessions has been 186 to 199. Weve snugged right back up as if on queue. We seem to go up in rates when you get to the meeting and dribble back down and steepen the curve meaning nobody sells the short end after the meeting. Yeah. Peter andersen were going to get more on apple in a moment here but what youre assuming is the market is going to act rationally even when the fed begins to raise Interest Rates, right . Well, yes. I mean that is an si sump shun of course. I think there will be a lot of fear and a loathing frankly, when rates are raised. First 25 basis points. But i think if we just step back and say, okay what does this really mean materialistically to companies i think that you will probably just shrug it off and say most of these company, except if youre a heavily levered company like a highyield company where your interest coverage is so razor thin, of course youre going to be watching every basis point increase. Otherwise, i think take it in stride. All right. Lets talk about apple. Touching alltime highs early in this session on the heels of that blowout Earnings Report that you had last night on the show. Massive stock buyback to give vend to toot. Dom has a special report on all of that. How widely held apple is . The f. You take about the guy, apple numbers were massive. We talking about a 200 billion stock or Share Repurchase program and dividend payout, its Capital Allocation plans are huge. Lets put it in perspective to give you a sense of the numbers here. The apple cash pile and investment pile is 194 billion. Now, just to put it in perspective, one of the other biggest cash hoarders out there right now is microsoft. Theyve got 107 billion in cash and investments. And then youve got google at 67 billion. So apple has more cash than microsoft and google combined just to give you an idea of how much cash that is. Now, if you talk about the stock buybackses. Thats big part of the story but lets talk about the Dividend Payments as well. Over at Snp Dow Jones indices, apple is on an annualized payout basis the biggest dividend payer in america. Pay out 12. 1 billion a year in dividends. That beats out exxonmobil paying out 11. 5 million. They report later this week. And then theres microsoft which pays out about 10. 2 billion. Important part of the story. If you own an mutual fund or nasdaq out there you probably own apple. Thats how widely held it is. As for maybe the stock pickers do they have as much of a favorable viewen of apple . Look at this because we asked the folks at morningstar about the three biggest equity mutual funds in america, the ones that invest in u. S. Stocks and have people actively managing or picking stocks. Check this out. The American Funds growth fund of america, the biggest one out there. Apple is not in their top ten holdings. Interesting point there. The fidelity contra fund, it does have a 4 waiting there. Number two holding. But then another American Funds, Washington Mutual investors fund, again, apple not in their top ten holdings. So even with the biggest mutual funds, bill kelly in america, if youre picking stocks not every one of them is as high on apple as the index funds are. Apple is the biggest weighted stock in the s p and in the nasdaq so of course if youre index investor its going to be a big part of your portfolio whether you own the stock out right or through a fund. This is fascinating. It is. Not always a must have stock despite its stature for those actively managed funds. Quincy crosby do you own apple . Would you buy it here . Well, you know we have portfolios within the company that some have apple, some dont. But i want to just say one thing that happenle showed us thats very important because we talk about emerging markets all the time. Nearly 40 of their revenue comes from that middle class and emerging markets, particularly china. There is room for american companys to sell into emerging markets as the middle class continues to grow. Thats why would like to say about what apple showed us yesterday. Heres the thing. Yesterday on the program we had this debate between dan greenhouse and ross. Ross is saying apple is an underowned name. Apple was one of the widely knowned names a couple of years ago. Today karmcarl icahn tweeting, saying people still dont understand how howe valuable it is. Apple is still undervalued and misunderstood. Expect to put out another indepth report in two weeks. This underscores your point that carl would probably make as well. There are probably a lot of big active Fund Managers out there who dont see the opportunity in this name and maybe have missed the move. Thats what makes a market. There are so many with get so many viewer tweets and emails from viewers saying why is everyone talking about a all the time . Its so over hyped and everything else. Then there are those out there carl icahn has an ax to grind. He owns a stake in the company. There are investors out there who say that on a valuation basis apple is still not that expensive to the overall market. Now, the bare case is this is the most valuable company in the world. It could be due for a pullback. Again, thats what make the markets here guys. I dont know whats going to happen with apple stock but this is certainly a divergent view. We just showed you a small example of the funds actively managed ones in america. Only the contrafund has apple in top ten. That says something about how divergent some of the views are to the big Money Managers out there. Peter costa, before we go what are you guys expecting to hear from the fed tomorrow . And what do you think the market is going to do about it . This is ive been saying yesterday, this is sort of the forgotten fed meeting. Also focused on junior september or december but we got this one to go flew first, right . I have to tell you, bill i would be very surprised if they say anything more than theyve said in the last three meetings. I think that that seems to be the pattern with the fed. They have not really going to give you much of anything. Youre not expecting stronger Smoke Signals that would tell us when they think theyre going to start raising rates . You know what . If they were if they were going to say anything or at least indicate anything to that extent, they probably would do it in this one or the next one. I just dont see it yet. I think theres still a lot of mixed data out there. Not enough data to tell them to go one way or the other or to have a rate hike in junior have it in september. I think that we still have to wait another month before you will start getting a better indication. I dont think youre going see much of anything tomorrow. All right. Very good. Thank you all, folks. Appreciate your time today interesting day. Around 45 minutes to go into that close approximately the markets are moving higher. Dow is almost up 70 points on the session. Thats good for almost 0. 4 . Lets see if the nasdaq can turn positive. Pay have to go with how apple trades. More earnings heading our way. After the bell tonight, its twitter and gopro leading the front and center. Well bring you those results the second they hit the tape. Plus the instant Analysis Market response outlook, all of that coming your way. The ceos of aetna and biogen. Were going to talk earnings and soaring drug costs. Coming up on the closing bell. If youre looking for a car that drives you. And takes the wheel right from your very hands. This isnt that car. The first and only car with direct adaptive steering. The 328 horsepower q50 from infiniti. All of the problems of the world could be settled easily if men were only willing to think. All of the problems of the world all of the inefficiencies could be settled easily all of the opportunities could be realized if we were only willing to see patterns in data we could never see before. To design a machine that thinks like we do. Track epidemics. Predict breakdowns before they occur. To become smarter every day. If men women machines were only willing to think. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print Amazing Things right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. All right. Weve had quite a day. Im just thinking of the trading range now. The dow was down 108 points or there abouts at the morning session on that erroneous report an iranian port boarded a u. S. Cargo ship. Thats not true. Now i think these are highs for the day. Up 73 points at 18,111. The s p is up 5 plus and nasdaq is threatening to go positive looking a t the dow 30. No these are the ten sectors within the s p 500 index. Only one is negative today. Consumer discretionary. Financials are leading the day today. Health care up another half of 1 . Aetna soaring to new highs after the boosting the outlook. Joining us now, we welcome back mark, the chairman and ceo of aetna. Plft mr. Bertilini. Lets start with your earnings on the quarter. How did you do . We did really well. Record earnings, record revenue in large part because were beginning to see a Consumer Market develop in health care. I think were on the front edge of that. Our top line grew largely because we had individuals selecting us to buy insurance. Medicare medicaid and in the public exchanges. Earnings were spread more evenly across the business because the establishmented but all in all, it gave us enough happenings to raise your guidance at the mid point by 30 cents a share by the year. Speaking of obamacare and these enrollments, mark do you have a plan b if the Supreme Court strikes down whats happening with the state exchanges . I think we should Pay Attention to what the Supreme Court has to say but i think in the end analysis this will get fixed. I dont think anyone wants to see pick your number 10 9, 10 11 Million People thrown out of insurance because of subsidies. I think were going get to the bottom of this one way or the other. And were going to solve it. I wouldnt spend too much time wondering what the apocalyptic scenarios are going to be. Clearly it would be disruptive. One of the Supreme Court justices a six sixmonth cooling off period to allow states to create their own exchanges to fix the problem but the states are saying we need a lot more time than that. Youre quite right in that you know, this thing could be fixed but there will be a period of disruption, no doubt, right . No i think there will be a ledgegislateive fix. I think well figure this out well before were require the states to build their own exchanges. That wont happen in six months. I dont think its a feasible solution in any way, shape, or form. Drug pricing, especially with the wall street journalle article this week about how the first thing some companies have done upon a big takeover is to raise those prices. You guys have tried to negotiate with gilead and others to bring these down. How much more pressure can we expect from you across the industry to push drug prices lower . Well, i think its less about pushing drug prices ss lower and making sure what theyre spending on drugs is for the benefit of our member our customers. I think for the hepc drugs that is in the value, in the long run getting hep c cured is what we want. Over time as we change the way we pay for health care individual prices of individual units used during the health care process wont be as alarming or as difficult to deal with. So we have to get to a very different payment model if were ever going to solve this model. Wait a minute. Im thinking of the valeant story. You know when they bought a company, they got two drugs in the deal and they immediately raised the prices by 500 in one case, 200 in another case because they said those drugs were undervalued. What is an undervalued drug if its effective and people are paying a price they can afford . Isnt that working . I mean how do you define undervalued when it comes to drug pricing . Well, the very first thing we do is we evaluate whether or not its clinically effective. That is the first and most important choice that we make. Once we decide if its clinically effective then we go about the process of understanding what the economic value should be and thats where the negotiations begin. Now, when theres only one drug available, its a much more difficult conversation because we really do need to take care of people. When there are multiple drugs available there are a lot of opportunities that come up with a better value for our customers. All right. Mark, can you give us an update on you guys notably raised wages and interested as many executives are in the impact thats having across the business and whether we can expect more to come. Well, i think ive had fellow ceos reach out to me and say, wow, how did you do that . And weve actually got a kit we off