Talked about a huge hailed for microsoft. It is dismayingly humor us. Lockheed as liftoff. We have the details on the new air shipments. And well show you what they look like. Its very, very cool stuff. After the bell, a rare and exclusive interview s. Erin callan, this is her first time speaking out about lehman since the financial crisis. Shes out with a memoir about what she calling leaning in too far, and shell join us live to discuss the new book and life after lehman. I would be interested to hear her thoughts on wall street today, and the impact that regulations are having on it right now. Maybe the tech world, too, where a lot of this discussion is taking place. Lets start with the markets and spikes in insurance and financial stocks. Bob pisani tracking the action here. Bob . Hello, william. Dont normal get insurance stocks leading the market, but were getting it today, and metlife up nearly 5 . A u. S. District court in washington ruled that metlife was not eligible for a systemically important financial institution. Of course theres going to be some appeals on this, but this is very important. Remember the company had been Holding Capital in anticipate it was a sefi. Also we dont know, this is not po on the floor yet, but certainly good news for metlife. They also said they would el receive their fae under to escape this sefi at the designation. Prudential and aig are moving. Theyre also face designated sefis, prudentialal well. Remember, there was some pressure on aig, and there shha been for a while, and they have resisted doing that. That maybe prove to be a very important idea, given this is all nothing a bit up in the air. Elsewhere, others financia we seeing wells fargo, bank of america, citigroup, all nicely up today. Speaking of wall street regulation, one of the odd unintended regulation, only as companies aspire to. I wonder too, bob, why did they have to go to court to get of the sefi designation . This whole court case has related, but i want to emphasize theres probably two other levels of appeals, including the u. S. Supreme court, so this is certainly not over yet. Bob, thank you. Well check back in in a bit. Our bob pisani on the floor. You mentioned this at the top. Brace yourselves for a terrible earnings season. Dominic chu has more. So kelly, bill, the reason why were saying that is we havent seen these low bar estimates here. Theyre setting it really low in terms of annual fist estimateis. This time they are for a 7 drop in earnings in s p 500 companies over the same quarter last year. Its not just the bottomline profits. Its also sales as well. You can see a Revenue Growth down 1 overall. It would be the third consecutive quarter of earnings declines and fifth consecutive in revenue declines, and that has happened since the great financial crisis. The Energy Impact is big. If you strip out energy, just for a hypothetical purposes, if you strip owl energy, earnings dropped 7 down to about 2 , so a pretty big impact. On the sales side you actually see revenue grut. The reason why the biggest drags here going forward, and these are some pretty shocking numbers here, energy according to that thompson royaltier ibis report is forecast to be down the 9 . Yes, 99 over the First Quarter of 2015. Material stocks down 19 . These are the two worst growers. Financials and technology, bob pisani mentioned the banks before theyre forecast to lose about 7 , and technology about 5. Tech and financial the two biggest sectors in the s p 500. They make up 36 of the overall s p, but energy and materials some of the big drabs. We should point out the positive story comes from consumer discretionary, and that of course is big baas mobaas becaue. Charles etch was on squawk box this morning. Moving are twaurs or 2 is pretty high, so i would be surprised if we met that condition myself. In april i think moving in june would be on the basis of further improvements in the labor market. And he sounds a little hesitant on that one as well. Lets talk about it. Keith fitzgerald from monday morning. Com, and alan valdez, hes at post 9 at the new york stock exchange. Keith fitzgerald, weve had this rally, global rally over the last 24 hours, which seems to be continuing right now. Is it a green light . No, you know, i wish it was, but i think this is an awful lot a lot like the dog ate my home work. The emperor still has no clothes, so theyre wallpapering over a wall that has nothing to stand on. Will i take it as a trader . As an investor, ill take it, but will it last . No, i think well have a good buying opportunity when the earnings come in. Jack, we were at alltime highs for the year. What do you make of the markets here . A couple things have happened. Over the course of the last three months weve seen a decrease in open interest here. A lot of that is due due to the fact that youve had Portfolio Managers that had messages on now taking them off. You see Fund Managers talking about how theyve been underperforming, but my antenna is up. Everyone is tacking about a green light with janet yellen. For me its more of a yellow flashing light. What dominic chu was just talking about is absolutely the most important. You know, larry kudlow says it best when he says that earnings are the lifeblood of a market and nothing has changed. If thats the case, where were trading right now makes us rich, so we have to be very, very cognizant of that. Alan, one trading day left in this quarter. We were talking about of the show, you were saying we had a vshaped market in this First Quarter, and i asked you what her you think well have in shape for the Second Quarter . Were going into obviously what dom chu characterized as a pretty bag earnings season here. I think its pretty obvious. These guys have been spot on with their forecasts in the last two years, i think well see pretty rough and that v will stand for volatility. I think its going to be a down quarter. You have a wall of worry out there, and i dont see traders saying, hey, lets get into the market right now. Even if the feds not likely to raise rates in the Second Quarter . But like your previous guest said, its the lifeblood of the market is this earnings season coming up. Well have to wait and see, but i dont see much good coming out of this quarter right now. All the same theyre is discounting mechanism, so we can look back at the weakness weve experienced when weve had these sharp selloffs now three to six months out, how well do you think energy or some of these other sectors may rebound . I think its a very sharp question. Normally i would have said, okay, energy is a good telegraph mechanic temple and you can look forward as sort of a rebound gauge. I dont think thats true. I think the more important bellwether is whats happening to technology . Unlike Energy Technology has gotten margin support. Its got increasing demand, you still have lots of people using it. The more important bellwether to me of what it portrays is that equity market. Jack brunellia and bill gross was out with his april investment outlook. He had a catchy phrase. He was saying Capital Gains and the expectation for future gains will become like giant pandas, very rare, sort of inefficient at reproduction. He was on power lunch elaborating on that. I think we have a s. O. T. Of that. Im sorry, im showing the wires. Not to despair and give up and leave the zoo because the pandas wont be mating any time soon. My solution basically is instead of investing at nothing, to try to bore borrow at nothing. He is talking like a bondtrader, classically so, but you as a stock trader, what do you think . I think for the next year, history is actually in his favorite. Remember, weve had six president s that have had eight years or more in one case in office. In that eighth year. Weve seen the market go down an average of 11 in the s p, 13 in the dow with the exception of 1988, so history is telling us that this is a very difficult year for equities. Looking ahead of that, remember, you know, bill is talking his position. I happen to think this is just this minor blip, maybe one year, but were in a 20year secular bull market. We cant really be thinking of what were talking about here as a new normal, which is what he was trying to convince us of last well said, jack. Suggested the strength were seeing might be as much as window dressing as janet yellen. Is there any truth to that . Sure, but i think janet yellen had more of an impact this time. Just three weeks ago it looked like they were going to raise rates come tomorrow and now its been put off, so i think that is the driving factor in this rally right now. Guys, good to see you all. Appreciate your thoughts, as always. We have 48 minutes left in the trading session. The dow is starting to head higher again, up 102 points at the moment. At its peak it was up 157 points, and the nasdaq once again the better performer of the three major amples. Coming up heir cal lan, the former cfo on Lehman Brothers, about her new memoir. This is her first interview at cnbc since the collapse of lehman. Looking forward to that, coming up. Also, when we come back, microsofts artificial el intelligence chat bots, as they host a Major Developers conference, all here what the ceo has to say. Youre watching cnbc, first in business worldwise. And that a tired dog is a good dog. [ dog barking, crashing ] so when you need a dog walker or a handyman, we can help you get the job done right, guaranteed. Get started today at angies list. At ally bank, no branches equals great rates. Its a fact. Kind of like grandkids equals free tech support. Oh, look at you, so great to see you none of this works. Come on in. Doing small gigs,side gigs. Gig gigs. Quickbooks selfemployed helps me get ready for tax time. To separate expenses,i just swipe. Its one hat i dont mind wearing. [passenger] i work for me. And so does quickbooks. It estimates my taxes,so i know how much stays in my pocket. And thats how i own it. [announcer] stay in the flow with quickbooks selfemployed. Start your free thirtyday trial today at joinselfemployeddotcom. At really day. In fact we had rally overnight. S p up 13 points, and the nasdaq is up p. Cowen upgraded the stock and raised apples price target to 135 from 125. You see its trading the firm expects a pick up . Upgrades to the new iphone, the se, which it things will have more flexible screen. Separately apple signed a multiyear deal with Major League Baseball to supply each team all the coaches will be able to use these new ipad protablets for statistical use. I can imagine baseball purists are not happy about this. Yesterday weve seen them on the sidelines of nfl games. You have. It appears theres ripe territory to fight over. Microsoft their shares are higher today, as the annual conference kicked off. Just getting as microsofts new twitter chat bot experienced multiple major technical issues, first viewing racist messages, then falling into some sort of repeated loop. Addressing the issues today spoke about the future. Last week when we laumpled our incubation tay, we realized it was not up to its mark. So were back to the drawing board. This is the rich world the conversations that we envision, people to people, people to your personal digital assistant, people to bots, and even personal digit at assistants call on bots on your behalf. Thats the world that youre going to get to see in the years to come. Well, lets talk about it. Joining us jon fortt and lance ulinoff let me start with you lance. Is microsoft expressing are they naive or disingenuous if a Food Companies decided it want to do a bot, but we were talking about microsoft. These things are complicated, and microsoft didnt count, i think on the underbelly of the internet going directly at trying to corrupt this bot early. Its kind of like giving a 3yearold cigarettes or Something Like that. But the internet by difficult necessary is what do you expect . Youre exactly right. But trying to create a new way to interact, the engineers are trying to figure out how to get it to work. Theyre not trying to figure out as firmly how to get it to break, but thats what twitter is for. Lance, educate me. Whats this chat bot supposed to do when its working properly . What am i supposed to gain from it . Its ultimately so you dont know youre talking to a robot, to a program. Its supposed to learn along the way. In fact, it did. It just learned all the wrongs things. Ultimately this was a big part of the keynote, talking about bots. The word bots must have been mentioned 50 times. It was about how these bits of intelligence can do things for you, proactively do things for you, not in sort of a rote way, but in a contexual way, when you talk to tay initially before things went terribly wrong, you got the sense she was pulling in other bits of information to give you a more insightful answer. During the keynote, they showed house a bot could work with dominos pizza, and i like that. Thats funny you mentioned that. In any case, the fact that we have siri, you know, the amazons, alexa, all these different ways in which companies are racing to try to build a technology that can interact instead of having to google something, we can give them the command and theyll respond. So i guess thats why these bots are important, it will manifest itself, with our interacting with our devices, maybe even our cars . Core tana was also another big part of this keynote which works as sort of a digital assistant. They were spreading that all over the place. Its going into xbox 1 and obviously on the Windows Mobile phone, and its a very important part of sort of this intelligent engagement with your technology, and sort of automated, but, you know, i guess i feel like its unfortunate that microsoft got this black eye at just this moment as it was trying to get people excited about the power of this bot, this digital assistant and clearly working hard to shove it into everything. They certainly displayed it and got the most possible attention for what theyre ultimate to. Thats true, kelly. I think the key here for investors is microsoft is trying to make up for the fact they missed the boat on mobile. Theyre trying to make windows 10 not just relevant for pcs, but also now you can develop virtual apps on xbox 1 and theyre trying to use this interface of conversation, core tana plus bots, if you have Wearable Technology involved, you can still interact with technology and get things done without a screen and mouse and keyboard which used to be key to that experience. If microsoft is going to succeed, they have to bridge that gap between the pc and the wearable. Great point. Indeed. Thanks, guys. Good to see you. Appreciate it very much. Two humans talking chatbots. How did you know . That is too funny. Private joke. 37 minutes left in the trading session here, and were heading higher. Spoke research showed us the chart yesterday that probably its a good idea often to buy the last hour of trade. Its happening right now, the dow up 115 points right now. Erin cal lan, the former Lehman Brothers cfo during the financial crisis who just published a memoir. Well get her take as to her new and very different life after wall street. Very different. Also ahead carnivals ceo discusses the earnings beat and its voyages to cuba starting in may, coming up. Welcome back. Shares of lululemon up more than 11 after reporting better than expected earnings thanks to cost cuts. And bill, much as we described them as a yogawear company they are diversifying rapidly, making blazers for women, all sorts of wardrobe options. You might have wanted to look into it. They might have a mens suit option. Really . Who am i wearing today . Lululemon. I could use the suits that stretch these days. Detroit is trueing to make an allamerican comeback thanks to entrepreneurs who believe in that city. Daughters from the Kauffman Foundation shows nearly 1,000 Small Businesses for every 100,000 residents in that metro area. Kate rogers is live at one business thats manufacturing 100 made in the usa denim in the motor city. Kate . Reporter thats right were here at Detroit Denim Company founded by eric yellsma who lost his job as a chemical salesman, but he always loved jeans. He decided he watched to make jeans just like these right here in detroit. I cooperate have done it anywhere else. I could not have dolls it in chicago, new york, any other city. I wouldnt have had i think the access to space. I couldnt have had, you know, sort of the economic i guess not favor, but the cheapness, the ability to go finished a place and start making something. Reporter today they employed seven people at the newly opened manufacturing facilities and have a plan to open the storefront in weeks to come. They employ native detroiters and teaching them on the job skills. That had bayly needed after the automobile collapse, but its a more diversified workforce. Making things, weve done that in detroit for hundreds of year, its rewarding to revive some of those old skill sets and employ people. Thats a real real reporter now, finding the right Skilled Labor has been a challenge. They say it can take up a year just to learn the right sewing skills, but the time and investment has definitely paid off. Last year Detroit Denim Company did about 300,000 in sales, and bill and kelly while were talking about Small Business next week for the first stop on the iconic tour of 2016 in april, we have a great lineup of speakers f 6 greg glassman, robin chase and tillman fertitta. It goes to show theres no real formula for incubating success, but in their case its the combination of low cost. And you could only do that in detroit, with their conditions. Time for a cnbc news update. Hi, courtney. Heres what is happens. Donald trump in a town hall interview with Msnbcs Chris Matthews that will air in its entirety tonight says women should be punished in some sway for getting abortions if abortions were made illegal. Do you believe no, but do you believe in punment as a principle . Yes or no. The answer is there has to be some sort of punishment. For the women . The last ten years . I dont know. Frankly i do take positions on everything else. Its a very complicated position. Josh earnest says the prospects of japan and south korea on obtaining Nuclear Weapons could be incredibly