10 of wells fargo, that is major money were talking about right there. And the fbi hacking into the iphone of one of the San Bernardino phones without apples help. Its the outcome and is it a bigger black eye for apple or the government . Well have both sides of the debate. Who loses the most in the outcome of this whole situation, apple versus the fbi . The Broader Market is getting a nice boost after janet yellen said caution is warranted. Gold rallying under comments dollar went low are and yields went lower. Financials, which of course would typically benefit, they are under pressure today. The worst performing sector in the s p. Lets get to Steve Liesman with details. Youve got to be asking yourself after this speech by janet yellen has the fed quietly retreated from raising rates, what it dubbed rate normalization, will it ever hike again . From gold to fixed income to stocks, laid out a dovish outlook for rates at this much anticipated speech at the Economic Club in new york and suggested greater gradualism is warranted in raising rates and emphasized the risk from Global Economic weakness. Given the risk to the outlook, i consider it appropriate for the committee to proceed cautiously in adjusting poli policy. The fed chair is clearly in no hurry to undertake the next rate hike. Credit suisse, curiously the speech focused on downside than the upside. Several members pointed to the possibility of an april or june hike if the economy improved but yellen offered them little possibility of a rate hike next month. She also questioned the one obvious reason for hiking, rising core inflation, she had her doubts that the rate will continue. Weakness overseas is another way of yellen saying shes find with where bond yields are pricing and agrees with what the market has baked in. Steve, lets show everybody whats happened in the last dumb of days. Expectations for growth have crashed for the current quarter. Perhaps that feeding into the tenner of her comments here. Otherwise there would seem to be no real change since the last time we heard from him. I think thats right the fed is reflected in what we do, a lot of folks have brought down that number there for First Quarter gdp, now tracking at around 0. 9 is our average, i think that atlanta fed is 0. 6 but that moves around quite a bit. Overall what she has to do is reject the strength in the job market and really say that what happened in december is no longer the ruling policy regime the fed is in. Its very hard to listen to the fed chair right now and know what data has to follow in line for the Federal Reserve to hike rates the next time. The feeling around here on the floor, this was an attempt by her to cage the hawks if you will on the fed. I want your thoughts on what the response may be from them. Weve been getting the confusing back and forth the last couple of weeks here from both hawks and doves on the fed zpl i think theres a problem here. If i have to say, your bri brilliant and accurate journalist, it was not from the quote unquote hawks and people voting against dovish policy. It was from centrists like John Williams and dennis locker who got my attention when they started to talk about april. Where you have an issue where the center of the board is leaning more towards an earlier rate hike than the chair, i think the chair has a problem. Maybe this speech today tells them look, we aint going there and you should stop talking about. And the opportunity of course to talk to chicago fed president tomorrow morning on squawk box. You dont want to miss it. With us susan fulton from fbb Capital Partners and rick san telli from chicago. John, is this like the all clear signal again, this is the stock market going whoo hoo, no rate hike . Think the market is looking at that on a short term basis. 12 30 on tuesday was something that we were looking for. If you look at the chart of the markets, it doesnt seem like the markets opened until this afternoon. It was relatively quiet leading up to that. On a short term basis, investors are happy to get the information, adding a little bit of clarity as to what they are thinking and how they are going to proceed to move forward. Economic data really hasnt supported any real reason to make a major decision now. And we are continuing to see some of this kick the can down the road. The longer we kick this down the road, i think we might have trouble there. Well get closer to november and a lot of turmoil can happen at that time. The fed is going to have to if they are going to do something, they have to do it sooner rather than later. Susan, do you like what youre hearing from the fed chair in the way they are steering policy . One of the big problems we have, this is not about us, its about europe and asia. And the decisions that yellen is making, i told i said last year three times on this program, that there would be no rate hike. Im willing to make a statement right now there wont be until january of 2017 because i think the International Situation is too dicey and that our situation is not so hot. I mean, profits are slipping with companies and were in an incredibly tu multiuous election with a lot of emotion around it. I dont see rates going up in the near term. Rick, so dollar goes lower and yields went lower and stocks higher. Are we to assume that one when the first does raise rates, it will be the opposite, youll want to sell stocks and treasuries and buy gold i guess at some point or buy the dollar . Bill, i think its really hard to tell, first of all, i think well be having this discussion in another two or three years as well. Ive said it a lot of times on santelli exchanges, we have made the current rate structure and world is recalibrated down to this. And our countries that followed in our policies, i dont think theres any switch the fed will find in any hidden room or type of video game that could just boom, its normalized. The fabric has changed. One of the questions that was asked, first questions to janet yellen about the state of the economy, i will read her answer, its brief. It sums everything up. I think with respect to the internal spending and how the economy has been doing. It progressed in a remarkably satisfactory manner. Remarkably satisfactoriry manner. A, that doesnt fit with the notion that were within 4 of striking distance of the all time high of the s p. Anybody who doesnt think this equity parade isnt directly correlated to the fed and central banking and Central Planning obviously isnt paying attention and as to change the dynamic, our guest susan said they are not going to raise, they are going to cut. Shes probably going to be right. Art cashin is going to be right. You know whos going to pay that price, all of the countries and debt and mediocre economies and the growth rates because we put forward probably five years of activity. Susan, i wanted to point out the names trading at all time highs include General Mills, cocacola, tyson foods and some real estate storage things. Those at least even the beginning of the trading session were at all time highs, are those the types of names hearing from the fed and where you think were going that you would stick with or looking into other parts of the market here . Susan . Im sorry, i think were really in the position where were in the 50s again and im very old. I remember when two or three percent mortgages were normal and that lasted for 20 or 0 years. We have a flat world and we have a flat world that has a lot of economies that are weaker than ours who are going to be continuing to lower rates. I like consumer goods, i like consumer goods. I like anything but financials. The financial industry is counting on Interest Rates going up. Yeah, i agree with you, susan, not that anybody asked. Before we go, were going into the last hour, what kind of levels are you looking at here . Wheres resistance do you think . Actually, resistance is right here, 2050, 2053 has been this resistance level looking back in the last four to five months. Early indications on bell, i think were going to continue to test that. If we close above that, i think with Economic Data coming out this week were going to continue to rally higher. I would go to 2060 on the next level. Thank you folks. Nice to see you, as always. Thanks, everybody. 50 minutes to go throughout the session. Its a mirror image of what we saw this morning when the dow initially was lower by 100 point points. The s p adding 17 and back above 2050. That was the level in the past where when the dissent came from fed members, stocks are pulling back and weve shot above that level and so transports are up 84 and nasdaq up 79. As you know, the government dropped its case against apple after finding a way to unlock that iphone without apples help. When we come back, well talk about whether the government could have avoided this whole nasty public brawl to begin with. Team Management Experts will weigh in. Youre watching cnbc, first in business worldwide. Here at td ameritrade, they work hard. Wow, that was random. Random . No. Its all about understanding patterns. Like the mail guy at 3 12pm every day or jerry getting dumped every third tuesday. Jerry every third tuesday. 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And i recommend that every homeowner who qualifies consider getting one now. Call one reverse mortgage right now welcome back, a leave tags across markets after remarks from janet yellen came in much more dovish than people expected and perhaps only one rate hike this year, thats what some analysts are suggesting. What a surprise. Look at the financials on the bottom of the heap. What did we hear from susan fulton. In this market she would buy anything but the financials and Technology Top left of the screen, thats the s p sector strongest. Those rate sensitive plays, utilities and Even Health Care up better than 1 . Few of the movers to tell you about this tuesday, sun edison may be on the verge of bankruptcy, from a filing by a holding company. Sun edison amazed 1 million of debt and has delayed its release of its 2015 annual report twice. If sun edison does not file by wednesday, or face a possible technical default. The wall street journal reported that the sec is investigating whether the company over stated its liquidity in late 2015. It will have sufficient liquidity on its own if its parent files for bankruptcy. Chipotle, the firm slashed the price target to 400, from 450 and trading at 460 and says the burrito maker will not recover sales lost from the nora virus and e. Coli outbreaks until at least early 2018 and thats the best case scenario. The government dropping its legal battle against apple after finding a with a to unlock the shooters iphone without apples help. Heres the story and it looks at the governments efforts to search for work around here. One of the questions being asked now after the stunning announcement that its going to drop the case in the whole apple versus fbi fight and government also saying that its already gotten access to farooks iphone from a technique given by an unknown outside third Party Last Week and that has proven successful and said its gotten information off of that phone. One question people are now asking, whether the fbi and the u. S. Government generally really did exhaust all the options before going to apple and making this case in the first place . You remember early on the fbi said only apple could help unlock this phone and thats why they are making this extraordinary request. But last week when they said there was an outside third party that had come to their aid. They said they never stopped seeking outside solutions to this problem all along and also said they consulted with all of the u. S. Government presumably presumably that includes the National Security agency and their experts and computer experts over there. Though the fbi i think hasnt said that significantly yet. Could the fbi have done more here. Thats one question that skeptics are asking. The fbi says simply were working on this all along. We found the solution last week as soon as we had something we made it public. The end result is that the debate now on that particular phone is moot. The larger debate over security and privacy will continue for some time. And perhaps only get louder. Thank you. Its not clear which side ends up looking worse. Lets talk about that. We have both sides of the issue, mark grossman, a Technology Lawyer who says the government blew it and randy zellen says the government did everything right. Mark, what do you mean . Just the fact that a few weeks after they stir up all of this controversy in court with this ancient revolutionary war statute, that they can find a technical solution, it tells you they blew it. Why didnt they wait and try harder . This was not miracle stuff. Needed to go public to solicit the right people to help them get into the phone. Do you buy that . It looks like the company that is rumored to have found the solution entered into a contract with the fbi five days after San Bernardino. No one is 100 sure but thats an interesting factoid. I give the round to the government. I will take your coin and completely flip it around. To me the government did everything it could have done and should have done. It went to apple for help. Apple was like, sorry, cant help you, so what do we do . We go to deaf con three and court and say, judge, i need you to get apple to get me into the phone. The fact that apple didnt get the last word and government got the last world and reminds me of that scene in risky business, bye, i dont need you apple, got it taken care of. Let me point out as well. When we polled viewers you about how they felt about the situation, actually apple comes out looking worse. Not a scientific poll but way of gaining sentiment. People are saying its pretty obvious the phones can be hacked. 60 to 40 this is a bigger problem for apple here. There is no such thing as a fine word when it comes to security. Its always measure, Counter Measure and counter Counter Measure. Apple will attempt to plug the newest hole and theyll lose that round and plug another hole. Its always what you can do today and hack today. Randy, why take him to court if youve got other options . It suggested that apple was the only entity that was going to be able to unlock that iphone for them and put them on the spot and backed them into a corner that forced tim cook to become this symbol of privacy in the United States when in fact they had other possibilities, didnt they . Its very interesting, to me you always default back to if you built it, you ought to be able to take it out. Why should i go elsewhere. Im going to go to the person who made it. So for me, its where it starts and stops. When you talk about security, the big issue and difference here, apple is protecting the security of its brand. The security of its business. The security of its relationship with china. The government is interested in the security of keeping us all from getting blown up. Thats a big difference in protecting an interest. Mark. You went into the politics of the issue and congress does need to act in this area, no doubt about that but so far they abdy indicated, unfortunate but the reality. Heres the netnet, the fbi could hack the phone and did hack the phone, it took them a few weeks, creating this public controversy in the face of congresss abdication made no sense at all. We can only say that now because in the intervening period no one else got killed or shot. Tell that to the 14 people killed, their families and 22 people who are wounded. Not so simple an analysis. All right, it has been a tough controversy that weve had to deal with the last several weeks. Thank you both. Thank you. Were heading to the close with a little less than 40 minutes left and the rally continues. The dow sitting at the highs of the session right now with a gain of 103 points and look at the nasdaq, my goodness, a gain of 1. 7 . That Technology Sector really booming. Susan said she didnt like the financials here but billionaire investor Warren BuffettsBerkshire Hathaway has a 10 stake in wells fargo. Why he could face more scrutiny . Will Restoration Hardware, what they are going to release the final earnings after the bell after ugly numbers last month. Do you remember that . Well tell you what to expect coming up. Technology up today but financials have lagged especially in light of Janet Yellens very dovish comments today. The xlf has turned positive and we saw financials had turned positive as the sector in the s p but the high profile companies, bank of america and citigroup and jp morgan one of the great movers, just checking five of the 30 dow stocks are lower and jp morgan is one of them. Berkshire hajaway is takes wells fargo to 10 . Buffetts Berkshire Hathaway had tody close that the stake reached 10 , that typically requires more regulatory scrutiny and in the case of banks, that means a case of the Federal Reserve and stake that large is usually deemed to be a controlling one. In berkshires filing, it did no require the shares to exert control over the company. Buffett sa