Transcripts For CNBC Closing Bell 20160411

Recall for the model x a couple hours ago. How the bad news could impact the musk empire. Netflix set to increase prices for about 17 million users with increasing competition in the space. This music is killing me here. Can the streaming giant keep Pricing Power . Thats the question well debate here on closing bell. I think we should keep it going the whole time . Why not, sure. Goldman sachs getting hit with a 5 billion fine. Eric sneiderman will join us after the bell and those goldman shares rallying on the hopes that the last few of these remaining settlements we are seeing in the past just as were coming up on earnings season. Where does all that money go . Thats the question well be asking, 210 billion, i think Something Like that at this point. So far, exactly. From these fines and settlements, lets get right to the unexpected meeting between president obama and janet yellen with her thoughts, from the washington post, ylan, good to see you. What are they discussing . Reporter the white house has said that the conversation will focus on the trajectory of the u. S. Economy as well as the global economy. They also said that Regulatory Reform would likely come up. Also president obama made a focus of his administration to expand Economic Opportunity for the middle class. These are very broad topics they have laid out. They are not providing a whole lot of detail around whats being said in the meeting but this is pretty unusual for the president and fed chair to meet. Theyve only met one other time and during the three years she was vice chair, only visited the white house once. She is not extremely close to the president. Not someone who sort of likes to play the political game as others in washington do. It will be interesting to see, it may make sense that she hasnt gone to the white house all that often. Every time she did, if she went more frequently, we would be speculating, right . It might give the impression that the fed was in the pocket of the white house, as well, right . Thats right. You can always pick up the phone and talk, you know. You know, white house spokesperson josh earnest this afternoon in a press briefing said he was very careful to say that the fed is an independent institution, did not want to give the impression that president obama was trying to influence the course of rate hikes and et cetera but did say president obama was quote, pleased with what he called a critically important job, which is being fed chair. President obama generally happy with the job shes doing of the remember that the confirmation process was quite contentious, one of the most that a fed chair faced in modern history. So right now he feels he made the right decision. Forgotten i was looking back through this, she had been head of the council of economic advisers under bill clinton, yellen a democrat and somebody who was not necessarily close to this president who at the time seemed to lean more towards larry smerz for the fed job here. I reported back in 2013 when the confirmation process was under way, her official interview lasted under an hour. She sort of felt that was a short time period for an interview for one of the most influential jobs running the u. S. Economy and steering the course of the u. S. Economy. Both of them had an expectation at that time or did not have an expectation that she would get the job. She was not president obamas first pick for the position but its also interesting to remember at that time people thought she would be the dove, never hike rates. Its interesting shes the person who oversaw the first rate hike where you see Larry Summers argue against them. They are having this meeting on the discount rate the socalled expedited meeting and happens every two weeks but the timing on the day she goes to the white house, all of the speculation is going to be out there, isnt it . Theres a lot of reading and perhaps overreading of fed tea leaves out there. There is this meeting that occurred this morning at 11 30. Closed door fed Board Meeting and so that has raised a lot of speculation, is this related . But fed meetings are always called under expedited procedures. My understanding is that this was a very rou teen matter. Finally, we had other fed speakers out there trying to talk differently about the markets again. You mentioned janet yellen being the person who presided over the first rate hike. If and when is that next rate hike coming . Thats on minds of those in the market here . Fed chair yellen has been dovish but i dont think that the fed has ruled out increases for 2016. You saw markets sort of write off this possibility for a while earlier this year. But youve heard a lot of the more dovish people in the committee, people who even more dovish than janet yellen say, maybe youve gone too far. Two rate hikes sounds about right to me. Thats important to note. Good to see you again, as always. Thank you. Thank you. From the washington post, joining us from d. C. Lets get to our Closing Bell Exchange for this monday. Jason pride, from glenn meade and keith bliss cuttone and company and Rick Santelli from chicago. Keith, here come the earnings, starting with alcoa and opec meeting next week. What are your expectations and janet yellen talking to the president right now. A lot of people being dazed and confused, thats what i expect out of all of the stuff coming at us. And you know, the markets have really been at an indecisive point for some time now. If you look at the trally back from the february 11th lows and where weve treaded water since the middle of march into this. Its really not going to do anything to break that indecisive point. Theres more short term negatives as i look at the market right now. One of those being earnings and expectations on those. We anticipate the First Quarter will be week and we all anticipate that many more sectors beyond energy will be week, particularly the financials which well see at the end of this week with the big banks. I dont think the market is on a good footing to break out to the all time highs again and see more short term negatives than positives. Catching up with the events of last week, one thing im xaching my head about, the japanese yen, the strength there and what kind of signal that is for global markets. What do you think . First of all, you picked the Perfect Place to start. Today is the seventh session in the row that the yen is higher against the green back. I think that if i look at it as a signal, i shake my head because i dont think there are any good pristine market signals anymore, were well past good signals. Theres been too much pro active involvement by governments and by agencies and by Central Banks around the globe. Whats going on with the yen is an offchute of a. M. Laaccumulatn of policy, all with heart in the right place but created dynamics and various structures and when they unravel, its like a cake, no baking powder or sugar and next to a cake with all of the right ingredients, you cant pick which one it is until you taste it. Much of this is coming home to roost. I would look foremore. This is a lessen in unintended consequences. As far as janet yellen and the president , there was so much conspiracy theorizing on the floor. I think its pretty easy. Had a robust beginning of his term, wasnt bipartisan and i think hell have a very robust end to the term. Whether its the lame duck notion or wall street reform or goldman got hit with 5 billion, you were all asking were the 200 billion went. The wall street journal did a whole article on this and couldnt figure it out either. In the end, i think the real question isnt that hes putting on a good legacy show now, its just sad that the middle, the middle of this 7 and a half years didnt have more meetings with the likes of janet yellen and others, to maybe do something worth while as opposed to kind of legacy building. I think thats my interpretation. This is more pro active in my opinion from the president s side than Janet Yellens side the other way. Jason, speaking of robust, oil prices here we are at 40 now on wti as opec gets set to meet about production freezes. Is that good or bad for equities now . Were still trying to figure out if that correlation between oil and equities that was so prevalent at the beginning of the year is still in place right now. What do you think . This is a mixed story here. Right, the savings are big bonus for consumers but consumers have been reluctant. Slow about turning around and spending that. Energy is a big portion of the overall marketplace. Were looking at a First Quarter here still where were the estimates coming in is a 9 decline year offer year. On the whole this economy is still in an upper trajectory. But you have to recognize, were in the seventh year of the expansion. There arent a lot of excesses to deflate but were in the seventh year of an expansion and Monetary Policy is beginning to normal size independent of whether they do it this month or not. Its seems like the path of Interest Rates is higher. Theres risks out here in this market and one of the reasons we think that investors need to stay conservative but equity positioned in this market because were some expansion but boy there are risks. Last week there was a screaming headline, anybody staying tahoe tell who gets usa today would have seen it. Feds put the brakes on mergers, they are referring specifically to what happened to the collapsed all sergan deal. Regulator have just said they wont support them. What kind of broader impact that has on these markets . Its going to have a negative impact. Businesses will strart restart retrenching from the organic, as well as Business Combination Growth Strategies that theyve been trying to deploy. They dont know what the new regulation will come about when you look at these new policies on versions, jack lew said two years ago he didnt think the treasury could do anything in rule setting statute to do anything about inversions but theyve come down heavy handed policies which makes a company like pfizer an aller gan rethink things. They wont be willing to go into a merger agreement of any sort when they feel a regulation could come down because they have to pay what we saw pfizer do, from a 200 to 400 million breakup fee. I think its going to cast a cold paw on the market for some time to come, probably until a new administration comes with new rules. Got to go, guys, fresh your thoughts on todays market action. You were paying attention. You hit all of the topics we were covering, strong yen and anti couldnt have missed the usa today headline if you were staying fascinating still hand those out . They do, Old Fashioned, oracle, lots of stories of interest to follow. It was a tough week for marktsz. Dow is system at 49 points for the close. 45 minutes to go. S p is up 2. 5 and nasdaq up seven. Netflix raising prigss for 17 million customers, question is will it ultimately help or hurt the streaming giants Subscriber Base and stock. Two leading netflix analysts have both sides of that debate coming up next. Get ready for the unofficial start of earnings season, alcoa poised to report after of the bell. Klaus will speak sluf exclusively with myself and jim cramer after the results are released. Youre watching cnbc, first in business worldwide. Hey, jesse. Who are you . Im vern, the orange money retirement rabbit from voya. Orange money represents the money you put away for retirement. Over time, your money could multiply. Hello, all of you. Get organized at voya. Com. Welcome back, pretty much evenly split into the close for the sectors in the green led by materials and financials and those in the red health care and telecom. We have movers to tell you about, under armour under pressure, Jordan Spieth came up short at the masters and Danny Willett won the green jacket after jordan jumped the ball twice. There we go. Last thursday we spoke with kevin plank about the return on investment that the Company Receives from athletes that they sponsor. Heres his answer. With stephan curry and cam newton and Jordan Spieth as stockholders were most bullish and excited about the company being built. When you look at roi, we have 11 of our marketing Gross Revenue goes into marketing. Its finding the hot teams, right athletes and players and focusing and partnering with the right leagues. Under armour is on a good streak and we dont see signs of that slowing down any time soon. Until maybe yesterday. I know it was a just a tough one for Jordan Spieth but what i was watching, those warriors, steph curry, unbelievable. If this guy is worth 15 billion of their market cap what hes done for sneakers for the next generation to give a foothold in footwear, theres two sides to the you have steph curry and warriors tieing the record for the most wins in the nba with 72 and you have the stock down almost 6 . I think they were paying more attention to Jordan Spieth. Morgan stanley was paying attention reiterating sell rating on under armour warning that industrywide slow down could cause sales to miss forecast when it reports its earnings on april 21st. Seagate technology spiking, a market perform rating and 36 price target, which it almost has hit today, up 5 because seagate got a positive mention in bear rons calling it 7. 2 dividend yield enticing and expects the earnings to benefit from increased demand from large drives used at data centers. If you live in the u. S. And youre a netflix subscriber, you may need to pay two more bucks. Those grandfathered into the original lower price point beginning in may it will cost you 9. 99 to get your binge on instead of 7. 99. Will netflix continue to have Pricing Power given all of the competition. Mike oleson says netflix has Pricing Power and will not lose subscribeds while cyruss says the Company Faces several challenges. Thanks for joining us. What is your biggest concern . Is it the increase in subscribership or whats on the horizon that bothers you . I think netflix is in a dominant position. It can afford to make rises to 10 and keep the majority of its customers and 17 million customers out of 80 million it will impact immediately. Over the medium term, the next 12 to 18 months, i see about five challenges. The first is increased competition from the big internet eco systems, apple, google, amazon, and so on. These guys have a lot of cash. They are big internet ecosystems and want to move into tv. Netflix is a nichee commerce player they could sideline in the next two years as theyve done with music and other niche and ecommerce fields. Thats the number one concern and theres a number of other concerns too. Michael, let me ask you as well, at what point you think netflix will lose Pricing Power here . I think theres no question that they are going to lose some subscribers as a result of the uptick in pricing but i think you have to keep in mind people are watching netflix an hour or two hours a day, the average is over 90 minutes. Theres going to be maybe a small speed bump here ahead of whats kind of emerging on to a much faster roadway, which is International Growth and theres definitely competition. I think some of those internet competitors mention are clearly going to get more aggressive but i think its important to keep in mind that we only need a small fraction of broadband subscriber users to adopt netflix to have Significant Impact on the numbers. Specifically were looking for about 10 to 15 of International Subscribers to adopt over the next few years and thats a relatively small number given 45 of subscribers are already using the service. They will have Pricing Power as long as they have a menu of product that people want to watch. I keep hearing how they are slimming down that menu shying more from movies and going more towards binge watched series especially those they produce themselves. That the proper strategy in your estimation . I think it is the proper strategy. Really what netflix is doing they are just optimizing the content library. What that means is there may be some titles that are recognizable to you and i that they take off and it causes some people to be surprised but ultimately they are looking at the data and its all about the data they have on content viewership and optimizing the roi on the content spend. They will have big feature films and other major titles to attract new users to the service but once they are in, they are finding that the viewership of some of these original series is much higher roi proposition. What about you, how about Pricing Power do you think the company has u. S. And international . I think right now its dominant and has a lot of Pricing Power but i think thats going to change quickly. I think these the Tech Companies that are moving into its space, the ones i mentioned, they are going to push up content prices and these Tech Companies have a lot of cash. Amazons own programming, things like house of cards netflixs own content like house of cards is a relatively small proportion of content viewers really want. Then youll have the u. S. Elections this year. If the republican president gets in, my bets are that net neutrally rules could perhaps be relaxed if a republican president gets in. That could increase netflixs costs because its one of highest internet band users in america and europe. Even if it stays unchanged, around the rest of the world in europe, where European Telecom operators see American Internet Companies as the competition, internet band width costs could rise there. Finally you have technology risks. Right now netflix is the worlds dominant video streaming app. But we think that in the next 12 months, youll have something called a pure internet tv, in other words, tv on a computer that replaces the tvs youre watching now. So the tvs that you see netflix on now, are pretty Old Fashioned. 90 of the revenues that are made on those tvs come from Old Fashioned technologies like cable and satellite and broadcasting and netflix represents 6 of those new revenues. In the future, next 12 months, we expect pure internet tvs to come in that will have live tv streaming, a bit like Sony Playstation which has been a bit of a flop at the moment but the other internet eco systems, ap and google will introduce Something Like that. Once that happens, netflix is not competing with other apps like amazon prime but an entire internet ecosystem. What do you think of that, mike . Thats a mouthful and ill avoid speculating on the impact of president ial elections on netflix. In latin america the company got to high single digit market share broadband subscribers within several years. And again, if this can remy indicate that and get into 10 to 15 market share of other international masshtional marke be driving huge growth from here. Thats our expectation. Good to see you both. Michael, cyrus, thanks for your thoughts on netflix. Bloodline, did you watch the first season . I dont think ive seen a tv show, new or old. Start with that one. Season two starts up. Where is it on . I think its netflix. Yeah. Genology kind of thing. No. Thats a good guess though i do have other interests in life. But anyway. I shall check it out. The dow up 38 points, was up 150 at the peak of the day right now were Holding Steady at lower levels with 35 minutes left. Three things to watch as banks gear up to report earnings this week. Is College Worth it . Two education specialists weigh in on what has become a hot president ial campaign issue. Stay tuned. Here at td ameritrade, they work hard. Wow, that was random. Random . No. Its all about understanding patterns. 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The nations biggest banks are expected to report their earnings this week. Wilfred frost will telling us the top things to look for. They have been the worst performing s p sector. Three areas to watch, energy, Capital Markets and Interest Rates. The first is energy, what does it do to credit write downs given the start of the year that the Energy Sector had, investors more focused on the nonperforming loans thaen they have been since the financial kriscy. Secondary is Capital Markets and this is the biggest reason for downgrades during First Quarter. Falls will be severe because of tough comparisons but while the absolute numbers will be poor, banks have guided as much already. It would be hard to surprise on the downside with up to 20 of declines already expect. Third is the impact on the core Retail Banking part on Interest Rates. Important to note the december hike is a positive for this quarters earnings but analysts have been reducing expectations for further hikes during the year which impact their full year expectations. So jp morgan, they kick things off on wednesday morning. On thursday we get both bank of america and wells fargo and then citigroup rounding off the week on friday and with the sector down so sharp, very, very important for banks to come out. With them not raising rates in the meantime and expectations down the road, not very strong and m and a falling off here there are fewer ways to make money right now. Absolutely right. I think over the course of the focus has been predominantly on the energy area and writedowns because people get scared whether its systemic, these words that flared up in february. The biggest factor for downgrades Capital Markets for this quarter. The question will be, how quickly do the Bank Managers think thats going to bounce back and m and a area, how we had something structurally changed. We had this allergan deal, is there anything under the kind of administration which means were not going to have anything pick up for a couple more quarters. We have secure works ipo coming up oversub described it could be if markets stay calm the Second Quarter gets the bulk of the activity that First Quarter does. Its moving that part of the business around. It could be that. Well have to listen to what they guide for the rest of the year. The interesting thing on markets, Capital Markets, once we see the level of erk quit markets rebound in march and do they think that will continue . We havent seen volumes pick up. Volumes have still be very thin. We havent seen that full confidence come back. Well have to see if they see that coming back quickly or not and the guidance aspect will be crucial to that. Its great having you here when the sun is up during the day. I know its odd to be out when i walk oust building it will be light, what a joy. Wilfred frost, our Bank Correspondent here at cnbc. Indeed and looking forward to first earnings on wednesday. Get your rest now. Time for cnbc news update with sue herrera. Welcome back, kelly. Heres whats happening, a state Department Spokesman says the u. S. Is very, very concerned with the recent increase in violence in syria, saying the vast majority of truce violations are due to Syrian Government forces. The syrians say the outlook for a long term cease fire isnt good because the International Community isnt interested in finding a peaceful solution. Federal security regulators filed civil fraud over recruiting investors to a high tech startup before becoming the state prosecutor. Paxton denies wrong doing. Bernie sandsers spoke to supporters in binghamton today and said he doesnt believe possession of marijuana should be a federal crime. Being married appears to increase the odds of surviving cancer. The study of nearly 800,000 Cancer Patients found unmarried man had a 27 higher death rate than married men. The reason Better Health care also some tlc from your better half, right . Another reason to get married. Exactly. Weve been married a long time, bill. For years. But not too each other. We were asked for years if we were married, yes, but to other people. Exactly. Thank you. Good to see you. 27 minutes left in the trading session here, slowly the air is coming out of the market balloon and now the s p and nasdaq are both negative. The dow up 22 points. It was up 150 at the peak today. One of the outperformers is goldman. Coming uppEric Schneiderman will be here for a first on cnbc interview about the 5 billion mortgage settlement with Goldman Sachs. And tesla issues a recall knocking the stock off its session highs. Phil lebeau will tell you what you need to know if you own a tesla especially. Stay tuned. With booking. Coms free cancellation, you could just forget the beach wedding. And the beach booty. You could just book a different resort. Like in alaska. Theyve got igloos. Its how you stay connected. With centurylink as your trusted technology partner, you get an industry leading Broadband Network and cloud and hosting services. Centurylink. Your link to whats next. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Welcome back, a little more than 20 minutes to go in the trading session today. Weve lost in altitude, dow up only 13 points and s p turned negative into the close. Why . If were all focused on earnings right now, all of the headlines are say what, they said this is going to be quite possibly the worst earnings since the financial crisis. That probably gains a lot of attention. I think people want to hear from banks. Weve seen that investment banks probably not as profitable as we want them to be, sort of a wait and see approach. I guess its interesting because weve known some of them at the same time. Is it just that weve also had Different Things going on. Yields keep on falling on Government Debt and oil prices have been fluctuating but cant seem to give us much of a direction. I think that has a lot to do with it too. You see the dollar coming in a little bit here or to ninemonth lows and people trying to navigate that. Is crude still the canary in the coal mine. You have to believe that Global Growth has stabilized to invest in the marketplace. Im not sure im on board yet. What do you have to buy . I think you have to look at this market in terms of a range bound market until it proves otherwise. Use the 200day moving average as the stop loss, 2050 in the s p in the cash side. Steve grasso. Tesla made news with people ordering hundreds and thousands of new model 3 cars whatever the model number is, today there are headlines about people having to bring a different model back for a recall. Phil lebeau joins us with details. Its the model model 3. I was right. Correct. Model 3 last week. Today were talking about the model x, it is involved in just a fourth recall ever for tesla, the first involving the electric suv. Heres whats going on. Tesla is recalling the model x essentially to fix the third row latch, the third row seats and latch may fail, 2700 vehicles impacted, basically everything made at the end of last year through march 26th. Owners until the repair is made are asked not to use the third row. Heres the head of sales talking about what might happen if somebody in the third row of a vehicle not fixed and its in an accident. Its actually with the leverage of weight in the seat, pulling it forward. So this would be an example of a front crash where the weight of the passenger seat belted to the seat could cause that latch to fail. Now we should point out that tesla knows of know incidents where somebody has been injured in the third row. These seat backs are being replaced and supplied by a Third Party Supplier out of australia and they are paying for the cost of repair over the next five weeks. For the people who own these vehicles, getting the repair done is important but for investors they want to know how much of this will slow down model s production. Tesla says its not going to slow down production. The company says this will not have a Material Impact on its financial earnings. So its still important, guys, even though youre talking about only 2700 vehicles, this is what happens as you start to expand your product line and you start to add complexity and thats when you start to get things like this that pop up. The model x price point much higher than the model 3 which makes it important for tesla. I spotted one on a trip to california last week. How many are on the road do you think . About 2700. There might shall a few more but the recall i am packs anything that was built before march 26th and they didnt start production until late last year. About 2700. Almost all of them are in the United States and again, they believe they can have all of them repaired over the next five weeks. You saw a unicorn, you were in silicon valley. Stereo typical going through silicon valley, model x. How many orders on the model 3 . Any idea . Last week it was 326,000 but they dont have a tote board. Its not like the jerry lewis telethon. Theyll stay at 326 for a while. That is crazy. Thanks very much. See you later. 20 minutes to go here. Keeping an eye on this market. The dow just turned negative, joining the s p 500, the under performer of the session today. Dom chu will have three up and three down, not baseball seasons but earnings season coming our way. What we mean when we come back after this. At mfs investment management, we believe in the power of active management. By debating our research to find the best investments. By looking at global and local insights to benefit from different points of view. And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. Earnings season unofficially kicking off right after the bell when alcoas results are out. Dom chu has been tracking stocks that could track to the upside and three surprise to the downside. Welcome back, kelly, youll see these preview type prediction stories. Heres a different take on trying to predict where the beats and misses may show up. Our data partners at estimatize specialize in crowd sourcing estimates, taking a survey of a wider range of folks. The team looked at how often a company has beaten estimates in the past historically and estimates for the year over year growth and revised in the past three months and how much different those crowd sourced estimates are from the average wall street analyst estimate. Using this methodology, they identified possible standouts this earning season. In terms of possible earnings per share disappointments, take a look at the chevron or yelp or go pro, each have seen large downward revisions perhaps no surprise that chevron has oil and gas type aura about it and that may be a huge downside move in terms of earnings. Those are low expectations. As for some of the possible positive earnings surprises, take a look at the likes of maybe a facebook andal aa aliba lendsing tree. Higher over the last quarter and each his tore he ctorically bea estimate here. It doesnt imply it goes up or down but it could help identify possibilities for bigger moves depending on whether or not the Companies Beat or miss on earnings. Thats what this data helps to do, shine light on some possible leads towards to where that volatility could be. Dom, thank you. The reviews for alibaba have been a riot to read. I feel that one has too pop to the top of the queue. Is this National Petroleum day or something . Ringing the bell at the big board the independent Petroleum Association of america and nasdaq, it is independent exploration of Production Company abrax us petroleum, what are the odds they would both be ringing the bell . Maybe theres a big summit in the city. 13 minutes to go. The dow is trying to stay positive. The s p is negative by 3. 5. Some Energy Watchers are thinking a v shaped recovery may be on the way. Hell explain why coming up. A first on cnbc interview with new York Attorney genEric Schneiderman on the settlement with Goldman Sachs next hour. Where investors can investigate and invest in vests. Or not in vests. This is my retirement. Retiring retired tires. And i never get tired of it. Are you entirely prepared to retire . Plan your never tiring retiring retired tires retirement with e trade. Plan your never tiring retiring retired tires retirement mary buys a little lamb. One of millions of orders on this companys servers. Accessible by thousands of suppliers and employees globally. But with Cyber Threats on the rise, marys data could be under attack. With the help of the at t network, a network that senses and mitigates Cyber Threats, their Critical Data is safer than ever. Giving them the agility to be open secure. Because no one knows like at t. Great time for a shiny floor wax, no . Not if you just put the finishing touches on your latest masterpiece. Timings important. Comcast business knows that. Thats why you can schedule an installation at a time that works for you. Even late at night, or on the weekend, if thats what you need. Because you have enough to worry about. I did not see that coming. Dont deal with disruptions. Get Better Internet installed on your schedule. Comcast business. Built for business. Fewer than ten minutes left in the trading session with the dow up three points. Art cashin was just telling us the market on close orders at the new york stock exchange, 300 million to buy. We will see if that has an impact at all going into the close here. Joining us right now, look at the recovery in energy we have sam stovall. There is a v in recovery. Yes, but no v if energy. Oil prices were up 50 off the lows but are you saying more broadly . I think you have to be careful when youre diving back into the energy space. If you put things in perspective and look at the tech bubble bursting and financial crisis, both indexes came down more than 80 . And really are nowhere near their all time highs. Energy down not as much, down 44 . But when we talk to Stewart Glickman at s p capital iq, dont jump in just yet. Theres a high correlation, 93 correlation between oil prices and energy earnings. And this quarter were expecting a 105 decline but next quarter it gets better, only going to be off 80 year on year. The whole year will be off about 75 plus percent. A lot of challenges ahead. I would never argue with stewart, what if im a fiveyear investor and looking at the long term time horizon when you consider the dividend yields from some of these big open companies as well. You look at the company like exxon, this is a company in the dividend arist to krats, increased cash payout in each of the last 25 years. We have it ranked buy, just not strong buy. Payout ratio is 70 not like chevron closer to the 100 level. You have a company over the long haul if youre willing to wait out and could ends up being under productive money if you will over the longer haul than still exxon could be a good opportunity. Where would you bucket an alcoa, obviously Company Specific issue still splitting into two but they are still a commodity related kind of name. Would you group them together in saying that be wear of those kinds of energy and commodities names that they may still have room to fall . Well, its the Specialty Companies those that have the ability to increase their pricing and have better opportunities going forward. The Materials Group in which you find alcoa expected to show near 20 decline in earnings this quarter and also be off for the full year. A lot of challenges in moez of these basic Material Energy kind of categories. I think certainly if you do have a longterm time horizon like bill does, you can make these kind of longer term investments. Very good, even your father is buying long term as well. Thats right. Thanks, sam. Well come back with a closing countdown for the monday. After the bell, yahoo bidding starting to get interesting, u. K. Daily mail kicking tires on the internet site. And who mr. Oleary thinks may be the best buyer. I am benedict arnold, the infamous traitor. And i know a thing or two about trading. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Ahhh. Three minutes left in the trading session and the dow is virtually unchanged. Up 150 points at one time today following the lead it seemed of crude oil. Wti back to 40 a barrel. Lets show the charts with the dow now down 13 points. Were starting to see selling come into the market here as we head towards the close. There it is down almost 17 points, were setting lows for the session after hitting that high on the open this morning. Now 17,561. Wti up smartly today as we get ready for this opec meeting next weekend as they get set to talk about production freezes, the wti contract for may delivery up 1. 7 to 40 and get ready for those earnings. Here comes alcoa, the ceo will join kelly and jim cramer to talk about earnings as they get ready to split into two companies, up 3. 7 . Pretty good gain for them. About 3 00 we started drifting lower. There wasnt any news out. I called around, didnt see anything. Consumer staples were weak, kroger weak and whole foods weak throughout the day. Just a general drift lower into the close. Volume is on the moderate side. I think the good news for earnings is a lot of negativity is out there. Very low expectations. We talked about the banks all day today. 20 declines in earnings for the top six banks, thats what the expectations are, thats pretty crumby, my position is if the banks say anything positive at all with most down double digits so far this year, big banks down double digits they are going to go up. The risk is to the upside. Also, we lookedty earnings for companies that have reported so far, not alcoa, but a number had february ending and the commentary is not quite as bad. I think this may be a forth telling of what may be happening for the quarter. If anybody and particularly multinationals have any positive comments, the crumby dollar has already been priced into the market. If they have positive comments, thats going to change things around. The earnings themselves may exceed expectations but again, as usual, it is that Forward Guidance thats going to mean everything. And that may be a tough call. Were interested in what they are talking about in the second half and commentary on moving the dial on the Second Quarter earnings commentary. And if any positive numbers come out, thats going to move up some. Thanks, bob. See you later. So big rally on the open this morning but its all gone, down 17 points on the dow. Ringing the bell as i mentioned, independent pe troel yum association and independent Petroleum Company abraxus, stay tuned for the second hour with kelly evans. Welcome back again, kelly. Thank you, phil, im kelly evans, couldnt quite finish in positive territory. The declines continue and stretch into this week as we await key earnings and in fact all of earnings season. Dow down 19 points today and s p down 5. 5 giving up a quarter of one percent and nasdaq down 17, giving more of a third of a percent. A remarkable slide from the interday highs. We have a very busy hour coming up. Alcoas earnings will be out momentarily and well be joined by clause kleinfeld to discuss those results. New York Attorney genEric Schneiderman will join us to discuss that in just a bit. First we turn to the panel. We have senior markets commentator aefrn pro columnist mike santoli along with stephanie link from Global Asset Management and guy adami joins the fray as well. Some thoughts on this market session, in fact the dow now settling down 20 points. Any reason we couldnt hold onto the rally . I will say three days in a row, thursday and friday and today you had a significant interday selloff into the close. You had a lot of positive factors were overnight, whether it was oil surging a little bit or european banks bouncing overnight. Then you had it met with some supply. Big picture, s p is exactly flat on the year. Earnings estimates have come down substantially on the year and the market seemsz to be in a side ways range trying to figure out in earnings have been at least largely priced in. You also pointed out the gra grandma stocks pockets of real strength in the market. That trend seems like it will continue, estee lauder and k kimberly clark, how the stocks look very expensive, they do except yield and when measured against peoples design to own something they perceive as safe. On the other hand the concern about financials as we hear from the big banks later this week. What do you think is going on . I was surprised we werent down more after cutting their dividend and those stocks were down except sap i thought it would have brought the whole market down. Were in a trading range until we get a little more color on earnings. Its a big week in earnings and ton of china, important china data towards the tail end of the week. We want to get through that and see what the companies have to say and what the numbers kind of shake out to be. But it is interesting that the grandma stocks are doing okay but also the cyclicals doing okay. Its been quiet on that front since the market lows of february 11th and maybe thats never short a dull market in that sense. First of all, welcome back, great to have you back. Mike mentioned, if you look at the last three trading days, the market and s p opens around the highs and has about a noon selloff and then fades the rest of the day. I dont know what it means and we havent really gone anywhere but its worth watching. The things today that give me pause are the fact that the ovx was up big today. That Oil Volatility index pushing towards 50 bucks, that sends a different message than the crude oil is telling me but the volatility index has been right more than its been wrong which believes me to believe theres another leg down in oil and the transports led us to the upside back on january 20th. When that bottomed out. For the last couple of weeks has been very quietly grinding lower. I dont want to make a big deal out of it yet, its nothing to get concerned about yet but back on january 20th was the beginning of something. Im wondering if its the reversal of something. Its a good point. Just to mention this, under armour did have a tough session today and nike has been a little bit weak. Anything to read into there beyond talking about the Company Specific stories about the consumer or something more broadly . With under armour, gets a High Conviction sell rating out there it got traction. I dont think theres a big issue here. I dont think its all about the masters. But i do think you had this instinct on sell side, taking profits. They are more or less hearing whats in the air among their clients that theres not that much comfort paying up at this level until we see if earnings are troughing or not. We have seen the last couple of days where discretionary stocks have lagged big time. It is profit taking but its also concern that labor costs are rising. They have high exposure to labor costs, maybe that margin peak story is out there. Im not convinced quite frankly. I hope thats the story. From a broader u. S. Economy point of view if they are rising for right reasons, right . Maybe we dont have its a lack of catalyst for the discretionary group. They dont report until a month after the others report anyway. The strength in home depot and lowes and couple of other stocks have carried the retail stocks. The equal weight has not done well. I did see gap was horrendous and theyve had struggles. National oil cutting the dividends, i wonder how that plays into places that may seem safer. The staple stocks as expensive as they are continue to do well aechb look within the tree and industrials, caterpillar is doing well because thats a good yield and ge holds up nicely. They are looking for yield and not carrying about valuation for now. Well see how these companies do during earnings season. You mentioned the seagate story kind of a yield sen trik bullish call and it did get traction. Thats a deep value play. Guy, we were thinking about the different places people have been hiding or finding that ee lugsive outperformance in the market. Health care, what do you do with that whole sector . Are we overplaying the stumbles regarding the negative merger headlines and pfizer deal falling apart and valeants blowup, is it enough kind of bad news this that space that you think they are getting chased out . This is what i think. So many of the companies that we talk about all the time bee toshio tech and big farmma are extraordinarily reasonable, if not flat out cheap. However the headline risks associated with the space right now to me is too great to go diving in feet first into space. Theres so much chance for any of the politicians left to take another run at biotech specifically or any number of big cap pharma names. Although they are cheap, i fear they could get cheaper. What about facebook with the Big Developers conference coming up . Were talking about advertising and that kind of thing. But reminded again about just how high valuation were assigning to some of these companies. The fang stocks havent done that well year to date. Thats because they did so well last year. They are not cheap by any means. Maybe google or alphabet you could say is the cheapest of the four, the one i can kind of endorse. The advertising trends are going in facebook and googles way to a lesser extent the other internet players but that only gets you so far when the valuations are so extreme. There was a cautious report on facebook, their quarter may not be as strong, you have a miss or not a perfect quarter and you could see it coming down a little bit. It feels like were kind of end of one era technologiwise and down of at which will be led by bots or something. With augmeanted reality imaginary beings. Out there. People posting far less personal information on facebook. People feeding the system a lot less to work it. It doesnt matter just yet. The advertising is there but i would argue at well over 300 billion in market cap, its been given credit for becoming the next google ahead of where google was at this phase. As people turn more and more to messaging and thinking if its not a world where were using and interacting with 45 different apps on our phone, facebook still has whats app that would put them in a pretty good space. Messenger, i think facebook i saw the notes last week and again today there are a lot of folks putting the stock market ahead of the Earnings Release and that might be okay because the stock did have a pretty decent run to the upside. I dont think at 35 times forward earnings given the different levers they can pull they are all that expensive. Out of the four names we just mentioned, i get the google is probably the cheapest but facebook is probably best set up to take advantage with the way the world is headed. I was thinking there magt be a new fang this week. This is a little wonky, but the fact we have seen the netherlands and germany and finland and corps european countries, that is not the case, we talked about the u. S. Financials and some issues there. Europe seems to be far, far worse. Where does that leave us broadly speaking . Net interest margin for banks are barely 3 , keep falling. Well hear from jp morgan and rest of the week. When it comes to european banks its about policy things and rescues and capital ingestions and not the story of whats the run rate of net interest income. Were better positioned in that respect but the entire spectrum of opportunity for yield for ways of making money through the credit channel, it doesnt look that great. Its a question are they cheap enough yet. U. S. Banks are far better capitalized because they were forced to do secondariries a couple of years ago. If youre going to make a call on the banks and value call, i think the u. S. Sen trik banks are the ones you want to own. Our economy is growing a little bit better, not gangbusters but 2 kind of growth kind of thing. Youll get some loan growth with a better Balance Sheet and then youll get capital return. Regional banks versus the Big Money Center ones well start hearing from and Investment Banking ones, so many times you hear people pounding the table for the regionals. Money centers and bigger banks are cheaper for sure. I think you can have a little bit of everything really. You have to have a barbell. The regionals are expensive but i like them because they are seeing better growth and they are cost levers they can pull. But i think theres going to be a time when you want to own the big guys valuations but maybe this can be viewed as the First Quarter will be the trough quarter and if things get slowly better and make that case, they are buys. There was a report about breaking up some of the big banks make makes a lot of sense for the profit of shareholders as opposed to ideology and regulatory reasons but theres no interest whatsoever among the big banks pursuing that uniformly if you look at the cities and jaxt p morgans where you could make a parts case. They dont seem interest and would rather hunker down and reap the benefits of size. Before we go, a quick last word on what youre watching. You have alcoa, jimmy is doing an interview and ill make a prediction, that he loves this quarter, should not come as a surprise to most that watch. In terms of health care, i want to go back because im getting feedback. The time to buy health care, if you see politicians with headlines come out that are perceived negative and stocks shrug it off and go back higher, maybe thats trough. Until then, youve got to stay away. Great to have you back. Thank you. And thanks for joining us, much more coming up next hour. Guy adami at 5 00 gold hitting a threeweek high but another metal that the commodities king is saying you should be watching. Dennis gartman will explain and alcoa earnings are due out any moments. Well bring you the results as soon as they are released. Well discuss whether yahoo can move higher if a bidding war breaks out. Eric schneiderman joining us on first on cnbc interview to talk about the settlement with Goldman Sachs. I could get used to this. Now you can, with the luxuriously transformed 2016 lexus es and es hybrid. We believe in the power of active management. Anagement, we actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. I am a First Responder tor and iemergencies 24 hours a day, everyday of the year. My children and my family are on my mind when im working all the time. My neighbors are here, my friends and family live here, so its important for me to respond as quickly as possible and get the power back on. Its an amazing feeling turning those lights back on. Be informed about outages in your area. Sign up for outage alerts at pge. Com outagealerts. Together, were building a better california. Suddenly yahoo may be the most popular kid on the block. Adding one more to a long list interested in buying the internet company. Some put the number of companies keking the tire as high as 40 to discuss why so much interest in the struggle company, were joined by kevin oleary, you have a long title. Also robert peck, an internet analyst. Great to have you both with us. Kevin, my question, does this company yahoo go to one buyer or four or five . No, i think the assets, the domestic assets are the most valuable. Yahoo is a structured product, you have the asian assets in there. The opportunity is heres what i want to have happen. I have to declare my alliance. Verizon is a huge holding for me, i want them to buy the company for 3. 5 billion. The private equity guys will have a hard time getting synergies and brits will have a hell of a time cutting costs. My verizon guys can go in with a whacking stick and chop so much of the cost out of this, apply their discipline theyve already shown they can to at aol and blend in the content with air rana huffing ton and this year, doesnt mean the brits wont go crazy and pay up to 5 billion. The rest of the guys it aint going to happen, you need synergies and need scale and sales force and above all a big whacking stick. Look what Marissa Mayer didnt do, she didnt cut costs and burned through hundreds and millions. Thank goodness shes gone. If the daily mail wants the internet sites can they take them while verizon still gets the ad business or Something Like that or would that be out of the question . Weve written that verizon is far and away the leading buyer here because of what kevin said there. The one point we disagree on is the price. I think it will be 6 to 8 billion, theres Hidden Assets as far as ip, land, real estate, a royalty with yahoo japan. When you add those up, 6 to 8 billion, thats what it will take to win this one. Mike . It seems thats where the numbers would settle out. You have to look at what aol sold for and it gets you in that vicinity. Bob, exactly where does that bring yahoo shares as they are now constituted . The stock started to outperform al bab ba as bidding comes down. Our target is 40 but theres a couple of things to realize, whether you get 6 or 8 billion, thats less relevant than being able to sell the alibaba shares and close out asian assets by the end of the year. When you tinker with those numbers, you can get in the high 40s as far as a price target. What happens to Marissa Mayer at aol armstrong is still there and running the show. If verizon wins, we believe she wont make the transition over to verizon because of what you just said. However the different strategic win you could make a case for her to stick around, saying at t or so could run that asset. If its verizon, it will be tim armstrongs show. Thats what you would like to see happen in terms of tim . The reason im not up there at the 6 billion, they dont need a lot of these royalties from asian markets. They want the domestic assets to apply all of the advertising platforms and synergies. Theres many ways to skin the cat but everybody agrees, verizon is the strategic. I would love to see them get this. Marisa mayer will be another one of the ceo in the long Revolving Doors that extracted 100 million from shareholders and this asset never returned capital to shareholders in the 260 years its been around. Lets not skin any cats. Kevin, thank you for joining us. Well see how it plays out. Valeant telling michael pooerson to cooperate with a senate probe on drug pricing after he missed a deposition. What this latest Development Means for the future and Goldman Sachs agreeing to settle a security ploeb for 5 billion today. New York Attorney genEric Schneiderman breaks down settlement on a first on cnbc interview after this. You know, to show the importance of saving for the future. So youre sort of like a Spokes Person . More of a spokes metaphor. Get organized at voya. Com. Hey kevin. Hey, fancy seeing you here. Uh, i live right over there actually. Youve been to my place. No, i wasnt. Oh look, you dropped something. Its your resume with a 20 dollar bill taped to it. Thats weird. You want to work for ge too. Hahaha, what . Well were always looking for developers who are up for big world changing challenges like making planes, trains and hospitals run better. Why dont you check your new watch and tell me what time i should be there. Oh, i dont hire people. Im a developer. Im gonna need monday off. Again, not my call. For your retirement, you want to celebrate the little things, because theyre big to you. And that is why you invest. The best returns arent just measured in dollars. Td ameritrade®. Were looking at shares of alcoa while we await results. Valeants Michael Pearson could be held in contempt for failing to appear for a deposition on drug pricing. Meg has the details. This is the third hearing the Senate Aging Committee is holding on price spikes of oerld medicines. We knew mike pearoson has subpoenaed to appear but we now learned he was also subpoenaed to give a deposition on friday of last week and that he declined to appear at that deposition. We have a letter from his attorney. They wrote to the leaders of the committee essentially where they say they have serious concerns about the basic fairness of the demand for sworn deposition testimony at this stage, taking issue with the fact that the committee hasnt identified the topics and pearson didnt have time to be prepared for the many documents he would be questioned about and hes rushing along with the company to file this 10k and it wouldnt be appropriate for him to step away and focus on Something Like this. Now today the company valeants board of directors put out a statement saying that they have asked peerson to cooperate with this deposition and they understand that discussions are ongoing. So theres a question of could they do an about face here and actually agree to the deposition. My understanding is that the committee is going to meet on wednesday in order to vote on whether to hold him in contempt but yet another kind of weird turn for valeant. Does he have have a point this is a witch hunt . He has a point that maybe you can consider the motivation of the people involved in congress but i dont think necessarily means that you want to be seen as putting up a fight to it. I would wonder what the investors trying to figure out here. Hes going to be replaced. Do his motivations really match up with valeants in terms of how that gets interpreted. Thats a great question. The fact that the company has come out and said the board asked him to participate, it doesnt seem like they are on the same page. And while he is still running the company, you would expect them to be more of a united front. All of this has been very strange. Does he need to be at the company . Does he need to be at the company to get the 10k out the door . Its a great question. It doesnt appear so yet because they havent said theres somebody who can run the company on an interim basis. When he was sick they had Howard Shuler and now they are in a big fight with him saying he had improper conduct. Who else would they get to step in and run it . Well see what happens come wednesday if not sooner. Thank you so much, meg tirrell. Alcoas results are finally out. Susan li has them for us. A bit beat when it comes to earnings per share. We have seven cents per share, thats higher than 2 cents they were calling for when it comes to revenue, a bit of a miss. Coming in at 4. 9 billion, less than the 5. 14 billion they were looking for and drawdown when it comes to cash 1. 4 billion, might be due to restructuring cost and we still dont have a date on when the split offwill take place. Keeping on eye on alcoa shares and here in an exclusive cnbc interview is ceo Klaus Kleinfeld along with jim cramer. Klaus, thank you for joining us. Whats with the delay here . We thought we were going to get the results right after the bell. Any sense whats going on . Well, our provider for putting these numbers out went dark the moment we want to get the numbers out and still not up. Weve been trying to trally around and get it out. Its finally out. Thats now does it seem like everything is up and running or they are able to get this out to everybody appropriately . I think so, yes. I apologize i know thats weird, i wanted everybody to be on the same page here. Lets focus on the numbers here and talk about in soon to be two companies, upstream and the downstream business. The downstream in particular looks like it was helped by whats going on in the autos and ae ae aerospace industry. What can you tell us just starting there with what demand looks like from your manufacturing customers . Well, if you look at this quarter, you see profits are up in all of the iconic segments, the name weve given to the value at company we will soon launch. At the same time, youll also see on upstreet side the two segments are holding up and are profitable in spite of the very strong appreciate ir on market site with low prices. On the revenue side you addressed, were growing and cutting at the same time, were growing as you mentioned in aero as well as auto and both look good and were cutting on the upstream side capacity that is low profitability or no profitability. If you look at the performance were improving the performance productivity up throughout all of the segments. We actually also have seen in the quarter a number of very good ideas we were able to cite and selling noncritical assets so that helped the quarter and most important thing, the separation is well on track. When we have a name called arconic. Happy to use that for now. One of the analysts did raise the question whether the split is still on track, saying what if the company doesnt have an Investment Grade rating or leverage or what happens, which is this beyond your control, if a aluminum pricing takes another leg down. Is this 100 done deal here . What we can say is that you mention the Investment Grade, i mean, currently we have a split investment separation. Investment grade separation. At the same time, whether it is Investment Grade or not, it has never been a prerequisite for the separation. All of the actions that we have under our own control are going well. Weve done a lot of modeling and at this point in time, the separation will go as expected and weve always said second half of this year is the time when arconic will come to life as a separate company and al cowith a will emerge. Klaus, its jim. You know ive been real excited about the aerospace division, thinking 5 billion in sales could be looking like a precision cast parts. One of the key components, im kind of in shock at the shortfall in that division and trying to figure out exactly what happened given the fact that rti, another space play, was terrific. Is something wrong at this at what was a fabulous acquisition . Well, on first we are basically looking at all of our targets and we are adjusting the target and it is behind our own expectations and behind really for two major reasons. The headwinds theyve been facing in their particular market and operational issues that we had been dealing with, operational issues like press outage that we didnt expect and forging that we thought would come up faster. The good news is we have a plan thats under way but clearly were behind. The better news is rti and other acquisitions we did a little later half a year later is well ahead of our plan doing very, very well and third acquisition which we talked about, smaller one, is nicely on track. All of this what i would want to mention particularly for tlixon, an essential element of our offering in the aerospace size because it gave us a full suite of components for jet engines and put us on an entirely different level in regards to our jet engine customers. Thats a value that it has provided and will continue to provide and were bringing at a certain point, dont these run out . I mean were not getting revenues you want, but is it really possible to continue to wrench out cost savings at a company youve been wrenching out cost savings since you got tlt . Well, i mean, the way we do is a very unique way. We try to basically engage every one of our 60,000 employees and have a system by which we monitor each single one of the actions, we probably have about 17,000 what we call action sheets in our system. I have a forward view and i know by name who is doing well. I mean and for us, even a penny counts. Thats what is it getting us these continuous productivity improvements as you saw also in this quarter and as you would see in the year. Im really very confident that we will get to the productivity targets that we have out there. 650 on the ar conic side and 550 productive for the new alcoa segments. Tell us whats going on with 3d aluminum. Its not 3d aluminum, 3d printing and aluminum and can print in titanium, nickel. We just got a contract with airbus, were very happy about it for parts that go on the airplane one of the first contracts that has been given up and its a very innovative technique. Jim, you showed it last time on your show, the 3d printed metal piece. You can literally do all kinds of things, its the dream of every engineer, go from designing it with all of the varabilitity there we go, im thinking i already drink out of a 3d beer can, it must be sophisticated than what i have in mine. Kelly, we can probably print one for you thats probably even better looking and nice titanium. We dont need an arms race of 3d printed technologies. Jim cramer, great stuff, much more coming up with jim and klaus on mad money 6 00 p. M. Dont miss it. Lets get to breaking news on president obamas meeting with fed chair janet yellen. Were getting our first read out from the white house on what exactly happened during that meeting as always these statements from the white house are fairly general. So heres what they are saying about the content of the meeting which took place at 3 00 this afternoon. They say the two discussed both the near and long term growth outlook, state of the labor market, inequality and potential risks to the economy both in the United States and globally and also discussed the significant progress made through the continued implementation of wall street reform to strengthen our Financial System and protect consumers andl also got this frm josh earnest, confirming the president has high regard for janet yellen and the president has been pleased how she fulfilled an important job. An endorsement there from the white house of janet yellen. All right, thank you so much. The latest out of that meeting. Up next, Eric Schneiderman joining us on a first on cnbc interview about goldmans security settlement. Were back in two. In new york state, we believe tomorrow starts today. 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How did we do that . We have some new guys defending our network. New guys . Well, theyre not that new. Theyve been defending things for a long time. [ digital typewriting ] its not just security. Its defense. Bae systems. Shoshow me more like this. E. Show me previously watched. Whats recommended for me. X1 makes it easy to find what you love. Call or go online and switch to x1. Only with xfinity. Goldman sachs agreed toy pay over 5 billion over claims stemming from the mortgage crisis. Eric schneiderman negotiated the settlement with goldman and joins us onset. Thanks for having me. Does this end your Outstanding Litigation with goldman on financial crisis . This resolves claims related to the bad Mortgage Backed securities that were part of bringing the market down in 2008. This resolves claims by a variety of federal agencies and end states. What about other banks . Weve settled so far with chase, citi, goldman is the fifth. Theres still more investigations under way but this brings the total for our working group to over 90 billion recovered and new york state has recovered im happy to say over 5 billion and were doing what we can do to see as much as this gets out to homeowners or communities hurt by the crash as possible. Thats the question, whether its been tallies of different analysts following the banks, saying upwards of 200 billion in fines and settlements since the crisis and there are simple question was wheres this money going. They could find of figure it out but couldnt really. Even in new yorks case, it might be going to pay pensions or what have you. Where is this money going . The settlements are complicated, different banks had different claims. In some states they had pension fund claims. In the state of new york weve gotten well over a billion dollars in cash. Thats goes to the state general fund. To the extent its intended to be towards housing programs when we have substantial housing programs in new york state but thats carved by the legs youre and governor. But consumer relief is directed in new york to help homeowners and communities hurt by the crash. The first thing we did was fund 90 legal counseling and Services Industries so no one gets for closed on because you cant get to a lawyer. They can keep you in your home but didnt know it. Weve seen through that network over 60,000 families already and helps a lot of folks keep their homes. Goldman did rally on the news. Hoping as you indicated as well this now puts that chapter behind them. Thats the sense, at least if not the last one that were at the tail end of this whole process. I wonder, the substance of the findings were that goldman and other banks as well misrepresented the quality of the loans backing these securities. What on a going ahead basis will change. Is there anything required of the banks to change practices or make sure that things dont happen this way again . Theres monitoring on an ongoing basis to make sure the money being distributed is distributed properly and getting to foreclosure relief or bland banks which were funding in new york. Going forward, they have to comply with securities laws. Some people are arguing that the Mortgage Market in the wake of this tighten up too much. Now were trying to reach the right balance. Everyone is on notice. The problem was misrepresentations about due diligence, were scrutinizing these loans carefully and making sure we throw out the bad ones. Goldman did business with countrywide and free mont and worst actors in this area and waiv waived them in. Do you think the regulations are too tight now . I dont think the regulations are too tight. I think there are challenges with the Housing Market and finding the right balance is always tough. We went through a period of time for hole homeownership and a lot of folks would argue that there were people with well intention who thought it was a good way to get families to secure some wealth for themselves and their children and ended up putting equity in the homes in time for the crash. Theres also obviously big focus on campaign trail about financial crisis still and whether the banks are too big and need to be broken up and these kind of things. This is here in new york especially with primaries coming up. Are you endorsing somebody . Have you declared yourself for somebody. I endorsed secretary clinton a long time ago. We have long relationship going back to before she was a senator from new york but ive work the with her talked Public Policy with her let me do you think Bernie Sander has gone foo far with his rhetoric. He will say the Business Model of wall street is fraud. Is he going too far, you hear the banks are talking big breakup the banks and are they focused on the right thing here . Im not following everything senator sanders says. Hes a nice fellow but i think the harsh rhetoric is one thing, coming up with solutions is Something Else again. We are in a period of time where i would argue that we do not have not had effective reregulation, i dont think the dodd frank is going as well as it should and making things complicated. And i do think it would be good for whoever the next president is to take a careful look at that process. And my approach to it is you have to get people involved who are in the business and get people involved who understand the industry and understand finances, complexity is the enemy of the simple investor. Everybody would agree to that. Would you ever file suit against these banks to break them up . You know, is there a basis for going that far if you feel as though theres still is that one solution . Actually under dodd frank its arguably harder to because if youre a scifi, youre being the government is now blessing too big to fail. In a strange way weve moved in the opposite direction of what a lot of advocates for financial reform were seeking. I think the markets i think are certainly better off than we were leading up to the crash. Always in danger of other bubbles but ive a pretty good sense that there are smart people trying to do the best they can. It is bogged down by in gridlock and lobbyists on top of lobbyists in washington. The problem weve got right now is that the federal government is not functioning at the level we need it to function. Thats why my office and proud of the fact we took the lead of the states in getting this working group set up in the first place. You guys whether its this, trump university, daily fantasy, you have your hands full. Well let you get back to work. Thank you for joining us today. Thank you. Well, is College Worth it . Speaking of campaign trail debatsz, we have that one coming up. Stock index was created over 100 years ago as a benchmark for average. Yet many people still build portfolios with strategies that just track the benchmarks. But investing isnt about achieving average. Its about achieving goals. And invesco believes doing that today requires the art and expertise of highconviction investing. Translation . Its time to bench the benchmarks. Tmobile does data differently. So it can do more for your business. When work takes you across the globe, your unlimited data travels with you to 140 plus countries and destinations at no extra charge. And thats not all. Because with tmobile theres no overages. Ever. Switch your business to tmobile at work. And get four lines. With 10gb of 4g lte data each for just 35 per line. Nobody does business data like tmobile. Jake reese, day to feel alive jake reese, day to feel alive jake reese, day to feel alive welcome back, Student Loan Debt counting a trillion dollars and counting. 43 are failing to pay down the loans. None of this has been lost in a president ial campaign trail. People should not be having to spend decades paying off 50 or 100,000 in student debt. It should not be a penalty or a crime that you did the right thing and you got an education. I think we can seriously look at an idea of where you can do Public Service. I mean legitimate Public Service and begin to pay off some of that debt through the Public Service that you do. Right now, you can refinance your mortgage and refinance your car payment and you cant refinance your student debt. So were going to give you the opportunity to refinance your student debt. Given that the average cost is more than 47,000 per year, how good of an investment is College Education these days. Joining us now is best selling author, there is life after college and dale stevens, founder of uncollege, dale, im starting with you. Uncollege. How much of a trend do you think this is . When i started uncollege five years ago people thought we were crazy and its become very clear in the last five years that the consensus is that everyone going to college is not necessarily the right choice. If everyone could go to harvard that would be great but the average school isnt harvard. And im interested in the fact youre not even talking about just in terms of your own story, dale, you even had a School Experiences where you were basically selfeducated, is that right . Yeah, thats correct. I left school when i was 12 and taught myself. That was the experience that led me to start uncollege. What started out of my own experience became a global movement. People interested in selfdirected learning and figuring out more options and more ways to learn. And right so you have the gap year and so also of course ther are plenty of coding work shops. Its not cheap, but you could come out and be job ready in a tight labor market. So jeff, when you hear this, is it a smart move for people to think about alternatives . People should position think options. We need to redefinition what we mean by a College Education. But we definitely need some sort of Postsecondary Education after high school. A college gldegree now, the premium is 80 over a High School Diploma. So we need education, but what it looks like really should be the subject of the president ial election. Mike, you have guys have kids. How do you feel . Mine are far enough away that i feel like well have it all sorted out by then. But honestly, jeff, i think thats the question here. The reason for that premium to a College Degree is that the kinds of jobs and the kinds of livelihoods could you have had with just a High School Diploma are not longer veil. So to we beef up the teier of te labor force or create some kind of new formula for Postsecondary Education . I think we need to start with Career Development much earlier. Most kids pick careers familiar to them and most kids go to college because everybody tells them to. So we need more options for apprenticeships so you can learn the trades. You need more options for gap years. And not only gap years where you just travel through europe, but where you learn real skills. But on top of that, even when you do get a bachelors degree, almost 50 of todays bachelor degree holders are und underemployed. So by redefining this, we will enable a much larger swathe of the population to have success after high school. Sadly were short on time. We can only start the conversation. Thank you both. And pertinent to our earlier remarks, i feel like the early work apprenticeships are as much about ruling things out as they are to locking things in. I didnt know what i wanted to be, i got lucky and i worked really hard and differentiated myself and thats how i started the process. And thats the answer. Juniper network shares plunging. Well tell you why when the closing bell comes right back. Its more than the cloud. Its multilayered security and flexibility. With centurylink you get advanced technology solutions. Including cloud and hosting services all from a trusted it partner. Centurylink. Your link to whats next. Wyou could just forget frthe beach wedding. And the beach booty. You could just book a different resort. Like in alaska. Theyve got igloos. Welcome back to closing bell. Juniper network is falling 7 in the after hours market. Seeing First Quarter results will be below guise answer due to weak demand from the enterprises and also as well as u. S. And European Telecom customers. So it looks like First Quarter eps forecasting 35 to 37 cents down from the original forecast. Coming up, earnings season officially under way now that alcoa has reported. Up next, well preview the this weeks big bank results. So i trade with e trade, where true traders trade on a trademarked trade platform that has all the. Get off the computer traitor i wont. cannon sound mobility is very important to me. Thats why i use e trade mobile. Its on all my mobile devices, so it suits my mobile lifestyle. And it keeps my investments fully mobile. Even when im on the move. Ahhh. And it keeps my investments fully mobile. To make the world a more beautiful, colorful place . Ob at ppg we think thats something we all need to do. We create, invent and formulate amazing paints, coatings and materials. So we can make the world run faster, stronger, fresher, smarter, cooler, lighter, greener and better for the next generation that comes along. Ppg. We protect and beautify the world. 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And by consistently breaking apart risk to focus on longterm value. We actively manage with expertise and conviction. So you can invest with more certainty. Mfs. Thats the power of active management. Welcome back. Alcoa reporting after the bell today officially kicking off earnings southereason. The Conference Call is about to start. Business wire is down and apparently still down. Weve reached out to the company which has not yet responded. But a couple of interesting moving parts here. Obviously people just focused mostly on alcoas part on what this portends. The revenue miss is not really being treated that well. The stock did double basically off of the lows. Or went up 50 rather off of the lows. So it seemed as if maybe there was a little too much ahead of itself. I do think that you will have some kind of a read through, but its about the split. When is it going to happen. I was encouraged their commentary about auto and aerospace was right in line with expectation. Packaging, equipment and construction, all of it was in line. Only thing that was weak was truck, not a surprise. And the call is about to begin. Thank you so much for joining me. Closing bell is finished and fast money starts right now. Fast money starts right now. Welcome to the site overlooking times square. Tonight on fast, buyer be wear. This could be the most dangerous time for the market according to a top technician. Hell be here to explain. And a metal has caught attention. Well explain what that is. And later according to a new explosive survey, 77 of apple watch users love the product, but the majority of americans think its a failure. So what is independent will the disconnect and what could