Valley will join us live ahead of this weekends season premiere. We will discuss the potential impact on the real Silicon Valley will have on that show. As we await earnings after the bell today from intel and yahoo among others david faber spoke with jeff smith earlier. He joins us with more on that fascinating tale. People are so focused or at least many publications are very focused on yahoos potential sale of its core business but there doesnt seem to be quite as much focus on the impending fight thats taking place with starboard, the firm that owes 1. 7 of the shares of starboard launched an attempt to take control of the board of directors of yahoo, but its interesting, the conclusion of that proxy fight will come after the conclusion of the process to sell the core business. So i asked mr. Smith wouldnt it be better to try to settle and get on that board now to potentially influence the sale process as opposed to be there when its over and done with . If we get to the end and they havent been successful as it relates to getting the company sold, the core business sold we are going to need to pick up the pieces and be able to make change a. Now, the other choice as you mentioned is settling. The advantage of settling today is to work with the company and be a part of this process and add capability and credibility in the boardroom. Mr. Smith indicating of course they are talking to yahoo. That is often the case between an activist and the Management Board of the company that theyre targeting. It doesnt appear that theyre close to a settlement, he wouldnt give a lot of specifics in terms of what he might accept, but it is certainly a question that he is taking very seriously because there is a question as to whether or not you have more influence being in the boardroom if you can get in there now as opposed to when yahoo has concluded the sale process which by the way as many as we know were due not first round, well see who actually moves on to the second round aside from verizon, which has made no secret of its interest guys in buyingia and did show up with an actual bid to do just that. Its complicated, though, as you know. Lets not forget it leaves behind an Investment Company main holding of which will be all those shares of alibaba. David, among the many things that was interesting from your interview was when he was talking about the sale of the core yahoo business he said somebody can come along and pay 3, 4, 5, 6, 8, 10 billion he had this wide range of notional values for this thing. I thought that was fascinating. Yeah, i mean, i think obviously as a large shareholder hes hoping it will be as high as possible and perhaps there will be a bidding war that leads somebody to do something irrational. I dont see or hear a lot of people in the reporting ive done believing that youre going to get a number lets call it much above 5 or 6 billion. I think thats fair to say. His point is every you know, as an additional dollar a share every billion dollars. They are hoping for as much as possible. His other point which is well taken is what is left behind is really more important and the governance there and what will happen not just the stake in alibaba, the 34 million shares, 15 , but also yahoo japan stake. There is still a lot to come on joo including right after the bell when we will get another look at how much the fundamentals of the company are deteriorating. That certainly if thats the case will help mr. Smiths attempt to unseat nine Board Members late as it may be in the sale process. We will get those results next hour. David, you have had a full day, a busy day there speaking with a number of different guys. What jumps out to you from the interviews and the discussion that youre taking in today . You know, speaking of Keith Meister was interesting, he is a board member of williams ways in this extraordinary battle with its merger partner ete for one of the largest infrastructure pipeline deals we have ever seen. That is not going particularly well. He did comment a bit on that. And speaking of ed gardner about their large interest in ge. They are one of thieves funds that is trying to transform themselves, that is, trian from being seen as an activist to being seen as more of a blue chip endorsing, if you will, of the strategies of Corporate America. So that management will reach out to them and bring them in as a sort of seal of approval that might garner interest from other institutions, but interesting to hear some of the thoughts and some of the ways these activist funds are trying to transform themselves in what has not been a great period of course as you guys know for activism at least not recently. David, thank you so much. Viacom falling on news its agreement with dish network expires tomorrow and no new deal is in sight. Julia boorstin tells us whats going on. Thats right. The pressure that cord cutting is putting on Media Companies is on display as we see the battle between viacom and dish, the impasse between the two companies sparking concerns viacom may be forced into a bad deal sending viacom shares up 8 , dish shares are up 1. 5 . Both companies coming out swinging. Viacom telling subscribers we are extremely dish is not engaged in a serious way to reach an agreement. This is on par for the course for dish which was deliberately derailed ten renewal negotiations since last year. Dish firing back that viacom is asking for hundreds of millions of dollars in increases despite the changing landscape that includes drastically reduced viewing of viacom channels. If no deal is struck in the next day viacom channels could go dark at the end of the day tomorrow. Guys. That includes comedy central, mtv, nickelodeon is that that might be the big one. At your household. Netflix sharply lower as well. Which is interesting because were talking about how theyre disrupting this traditional space. Theres concerns over subscriber growth at netflix especially on the international side. Yes, well, it was really the subscriber projections for the Second Quarter that sent the stock lower. Coming in despite the fact that those First Quarter earnings and subscriber growth in q1 did exceed expectations. A number of analysts have lowered their price targets on this news including jpmorgan though he does recommend buying on weakness he says that investor focus is shifting from the u. S. , slower an expected international growth. Despite questions about growing competition for netflix including some amazons monthly Video Subscription Service the Ceo Reed Hastings says there is room for many players to succeed in this digital video space. Hulu is doing great work, amazon is, hbo, showtime, there are so many competitors and everyone is working hard to build the best content. So, you know, were seeing growth in the overall internet tv market, of course, thats displacing linear tv. Hastings says that netflix is going to stick with what it does well with no plans to move into live or into sports programming. Guys. All right. Julia. Seems like investors in netflix get a gut check with these quart reports. Or a punch in the gut. Turning to the markets joining our Closing Bell Exchange we have nancy tangler, dan willis and our own rick santelli. Nancy, we have this market continuing in melt up mode, nine weeks and 14 isnt so bad. Are you finding some things that actually look attractive even after this rally . Yes, we still have. We look at relative price to sales ratio, mike, and also relative dividend yield. We are still finding attractive names in fedex, or cal is also at a historical low and even google which is a little dangerous because they report on thursday still attractive to us on a relative price to sales ratio basis. Nancy, what about ibm . We had that after the close yesterday. You mentioned or cal, but ibm shares around i think about 6 today. What would you make of that . Kelly, im actually a little encouraged that they are not down more. This is a story, its a deep value story, attractive on a relative dividend yield basis of course. The company has been buying back stock raising the dividend and now is on an acquisition binge that is the greatest they have seen in the last 15, 20 years or in their entire history spending 9 billion, buying 20 companies. Thats the hope for the future, that ibm can buy the technologies that they dont make internally. And theyve been unsuccessful at. We have hope for the could go sieve bases, we just initiated a position a few weeks back, i wish i had bought it two months ago, i think the question in three years will be why didnt you buy more. Ben, why dont you address the overall market here. We have had some round numbers come into play the last couple days, dow 18,000, crossed 2,100 on the s p 500 today. How does the market field position look to you here . I think the best way to look at this market going all the way back to february is this has been a risk off market. The huge Short Interest rate if you look by sector by sector there seems to be a daily love in covering of shorts positions that drive the equities related in some case the commodities like the oil stocks. Oil is a great example. Huge short position in the oil stock and in the Oil Commodity in anticipation you will have a much worse result out of doha, that trade was so crowded i think thats what you saw today was again a Short Covering on that issue. We follow a basket of stocks that are followed by a negative Research Firm and the stocks that have the continue to have downward momentum have those issues where they continue to fall but when there is a which ha whiff of upside potential the short cover has monster move, the blue chips if you can bring up a chart of exxon you have had the whole street talking about this chart for the last two hours, the stock looks like the market, its flat lined. Thats pretty remarkable. You have to be sector specific in looking where whats been going on and if theres a large short position you need to be very careful. It hasnt been a risk on trade, its been a risk off trade thats been driving the up side. 12 straight weeks of smart money out of Merrill Lynch has been selling into this market. Okay. Rick, you know, we also got comments from boston fed president eric rosengrim earlier today and he said markets are off the market, you are only pricing in one more rate hike, he thinks that the rate hikes will be more rapid than that. And hes the guy thats pretty dovish, it seems significant that he would come out and feel comfortable enough to say this and you really dont see much of a reaction, do you . No, it makes me even more nervous that a dove would speak this way despite the notion that he probably forgot to tell janet yellen the market is wrong. I dont know. I think when it comes to fed we can talk all day, lets look at how it pans out, there is counterintuitive activity. Im surprised that the strength of late in the equities, this is only us, take a look at the dax, one of the few times in year its in positive territory and Interest Rates are ignoring it, we havent settled above 180 since the end of march for 10. There is a red flag, b, ecb meeting this week, ours and bank of japan next week, notice how the dollar index is teetering here, we are losing the 94 handle. This is very significant technically and i think that speaks more to draghi. Last but certainly not least i think that when we look at some of these unique stories, whether its the financials, the bar is low, many people are wouldnt be diffused numbers a month ago but none of that matters any more. There is momentum in i can wits and i think it leads for the next several weeks. Oh, and one other thing. We hit negative 12 1 2 basis points in the japanese government bond. That might be the pulling effect of our rates despite the rightness of whats going on in the equities side. Rick, its not just and the treasury side of things, in equities where showing risk on. Argentina 15 billion in debt and the riskier parts of the credit markets doing okay as well. Absolutely. Let me tell you, mike, in the type of environment we are in now as long as equities are doing good all the other derivative markets, high yield investment grade, foreign high yield, i cant see how they are not going to be popular as people do as you pointed out feel a bit more comfortable in this eye of the storm. The eye might last longer than we all think. Nice, thank you. Rick, ben, nancy, appreciate your views on this market. 45 minutes left to go here. We did briefly go into negative territory throughout the session today. The dow is up 33 points, the s p up 5, the nasdaq has been laggin lagging. And netflix and amazon also weaker today. Target is reportedly raising its minimum wage but will the move miss the market with shareholders we will discuss that next. Also ahead Silicon Valley hits wall street, the story of the hbo series, thomas middlevi consider. H will give us the loi down. Youre watching cnbc first in business worldwide. The call just came in. Shes about to arrive. And with her, a flood of potential patients. A deluge of digital records. Xrays, mris. All on account. Of penelope. But with the help of at t, and a network that scales up and down ondemand, this hospital can be ready. Giving them the agility to be flexible reliable. Because no one knows like at t. Quite like the human foot. Introducing the 255 horsepower lexus is 300 allwheeldrive. With twentyfive percent more base horsepower. Once driven, theres no going back. Lets take a look at ebay. Morgan stanley downgrading from underweight to equal weight today and reducing the price target to 22. 50 from 24. Increasing competition from amazon. Tough bay for ebay. Target reportedly mazing its minimum wage for the second time in a year. Courtney reagan has more. So target wont confirm or deny reports that it is increasing its minimum hourly wage to 10 in may, but it seems all but inevitable. It would be the retailers second wage bump in a year after increasing to 9 per hour last april while also putting target in line with walmart which raised its hourly minimum wage to 10 january 1st. Employees at target and walmart already taking over 10 an hour will be reportedly eligible for further pay increases based on merit and experience. I spoke to one target employee that tells me that is what shes been told as well. Targets official statement says only that it pays competitive rates and regularly benchmarks the marketplace to ensure its compensation and benefits are in line to recruit and retain talent but target doesnt disclose the details of its compensation programs. Its not clear how many of targets total 340,000 employees will be eligible for the reported raises, though safe to assume its much smaller than walmarts eligible employee pool. Target has admitted that labor costs are going to be a head wind this year and analysts ive spoken to think that it has been accounted for in the guidance, but there is still some skepticism whether the retailer can hit its gross targets even before this report of higher wages. Kelly and michael. Courtney, im also wondering, you speak so much with these different retailers, do you get the sense that these minimum wage hikes are a push or a pull . In other words, is the Company Pushing them through because of regulatory reasons or otherwise or does it feel like the strength of the economy is naturally pulling them higher . Thats a great question, kelly. I think it could be a combination of the two but i would err on the side of it being a bit of a push. I think it really is to retain talent in the marketplace. A lot of these retailers are shifting some of these labor hiring and wage growth in their ecommerce fulfillment. Those areas often have higher wages and that has become very competitive as well. All right. Courtney reagan. It definitely feels like there is a mainstream over wall street dynamic going on for a while now, at least a year. Lets see, we have 40 minutes to go left in the trading day. We still have the major indexes up about a quarter of a percent each, s p 500 up by 5, to 2099 or so. And yahoo and intel will report their earnings after the bell today. We will tell you what to expect, break down those numbers until they hit the tape and stacy smith will speak with us minutes after the chip yient posts the numbers. Up next, Tom Middleditch is up next. Today, were seeing new technologies make healthcare more personal with patientcentric, digital innovations; from selfmonitoring devices that can interpret personal data and enable targeted care, to Cloud Platforms that invite providers to collaborate with the patients they serve. Thats why over 90 of the top 25 Global Pharmaceutical Companies are turning to cognizant. Our domain experts, technologists, digital and data specialists, clinicians and scientists are transforming the way Clinical Research sites collaborate with pharmaceutical companies, and enhancing Patient Engagement with innovative platforms and solutions. Our populations growing healthcare needs present growing opportunities for our clients to advance the future of medicine with digital, and improve the quality of lives. Welcome back. Lets check in on tesla, those shares are lower today. Consumer reports says the model x is facing quality issues. Tesla says it is seeing some issues with model x sales but they are not widespread. The report in Consumer Reports notes that such quality issues are expected from brand new models. Lets take a look at a couple of movers today. Goldman sachs gaining ground, the dow component reporting better than expected earnings for the First Quarter amid deep cost cuts, the revenue did come in below street estimates, the stock up 2. 25 . United health group also higher, the Health Insurer reporting better than expected results, also raising the full year forecast. They say theyre removing offers from almost all Affordable Care act exchanges by 2017. Those shares up a little less than 2 . Hbos hit show Silicon Valley returns sunday for a third season. The show follows a group of Young Program percent who create a tech start up ca