Today. Call it daydream. The head of vr will join us to discuss this daydream. In a first on cnbc interview. In the meantime after losing a second lawsuit claiming Johnson Johnsons talcum powder causes ovarian canister, they are speaking out right here on cnbc. Comments in a moment. And super bowl of bio tech coming up in just a few weeks. Well start getting data from a number of companies that that could cause sol bic moves. And fed minutes released about an hour ago. Steve leisman has some of the highlights for us. Thanks a lot. The u. S. Federal reserve strongly suggesting the possibility of a june rate hike if the Economic Data improves and that is what they expect to happen. In fact in the minutes before the april meeting that came out just a few hours ago the fed said some of these conditions are already been met but many members of the fed expect the other conditions to be in place by the time the fed meets in june. That means further evidence by the economy is rebounding in the Second Quarter from the weak First Quarter. If the minutes are met it likely would be appropriate for the committee to increase the target range for the federal funds raid in june. Some in the fomc said they were concerned about risk in persistent sloweden and continuation in in over seas and mentioned the brexit vote as well. However the minutes also as it was they decided to keep open their options for the june hike. A lot of attention will be paid tomorrow t. Fischer and dudleys commentary could go a long way. That is going to be very interesting. Steve, great stuff. Thank you. Talk to you later. Lets talk about these fed minutes. The markets not so favorable reaction to them and our Closing Bell Exchange right now. Joining us an mohamed, dorothy, steven and Rick Santelli who withs in chicago. Dorothy, clearly the market interpretation is that june is more on the table than we earlier thought. Do you agree with that . Is it . Clearly were being guided to be prepared for them. Partly because they dont want to surprise the markets so were beginning to see the fed spokespersons out there beginning to prepare the market for it. Dont know that that necessarily means it is coming but it certainly means that if it comes, they dont want it to come unexpectedly. Mohamed, is there a risk that we start to price it in now . In a way almost making the hike happen and then making it hard for the fed to actually move forward the markets dont do well here between now and the meeting. So the fed is torn. It is worried that we have been underestimating the probability of a rate hike and markets are starting to be more realistic in terms of what has happened to the two year treasury that has moved massively over whats happened to the probability. You know the fed is always torn. Is it leading the market . Is it reacting to the market . The clear message today is this is a fed inclined to hike rates. If it werent for brexit, it probably could hike as soon as june. But it will definitely hike this year. That is the message from the minutes. Sarge, what did you think of the market response . It is no secret you and i carry an daily clog about the markets and where things stand right now. Do you think the markets were caught by surprise by this . I dont think so. The market is up. The banking sub sector is up almost 3 . Clearly they have been told by banking owners it is time to raise rates and if they can justify it they are going to do it. Its a victory for the savers. Victory for the old folks which is a good thing. If the fed wants to join the family of sentient beings i women the welcome them. We talked about Interest Rates and flattening curve. Do we see things moving higher and responding favorable . Are they encouraged longer term . I i just think favorably is not a good word for that context. I dont know whats favorable. But i will tell you this. The long end has multiple personalities. There are a lot of things effecting the long end. So i think it is very hard to answer how it is going to respond if and when the fed actually delivers on its promise of likely, which is also a big deal. But i think that it is all about the short end with regard to the fed. And the long end is about relative value, what draghi does, policy, contagiocontagion fact that we are doing a tightening in a 2 economy is something very unique. So i wouldnt be surprised to see a lot more koount intuitive moves in the market. But suffice to say in general terms all rates at least have been moving up. At least at the two year is a sprinter and the ten year is like a tortoise. The dollars probably your best gauge. And tell you what the dollar actually does have a nice head of steam. In terms of doing damage to market and mohamed is always great in this category. But now or whenever they are not going change the laws of financial physics. When they tighten the dollars going to go up and the stock market is going to have a bit of agita. But down 6, down 7 isnt that bad in my opinion for today. Rick set it up for us pretty well. The prevailing wisdom has been for a lower dollar and commodities going higher, most notably the price of oil. Could that change if the sentiment switches to the expectations possibly for a rate hike in june . Yes it could. Remember, the fx market relatively is torn. That is relative price so it has to keep an eye on elsewhere and here. If the fed unambiguously signals it will move, you will see a stronger dollar and that will have consequences on other market as rick said. Were still going to hear from fed chair janet yellen before the june meeting. And fischer and dudley. If they are really serious about going in june and that really being a live meeting we would expect all three of them to basically give us the same message here, right . I think it is going to be really important what they say. There is no need to necessarily pick june. You still have the situation in uk with the vote coming up right after that. So to postpone it post that would not be a problem. Definitely be going up this year. But i think hear interesting the three of them is going to be sending very intentional guidance to the markets. And so we need to be listening. Sarge, the financials. They are the leaders today. They were before the minutes. They were certainly after the minutes came out. Is that an area you are going to start to sniff around here . What are you going to do with those guys if as i said to mohamed f the sentiment continues to grow that the fed is think act june here is this. I dont know if you want to trust it just yet. Retailers have been beaten down. Technology has been. I think you will find better value elsewhere. In you want to get into the banks maybe you want to buy one or play options. I dont think you want to jump in with both feet just yet. You are still skeptical were going to hear more definitive line of hawkish attitudes from dudley and fischer tomorrow. They have said the right things but ive told you for weeks. The dxy they want it at 95. It was around 92, 93 they wheeled out about six or seven hawks. Got it up to 95. Now with the minutes if it starts creeping higher they are going to Start Talking more duffyish because 95 is where they play nice in the sand box with the other banks. We have a long way to go before june. So are a long way to go. What would you add mohamed about the thinking about the level of the dollar here . I think it is hard to target the dxy. There is too much going on both here and over seas to target an Effective Exchange rate level. But i think the general point is correct. Moves and financial conditions a whole is making them more confident about going forward. And they were worried about markets underestimating the possibility of a rate hike this year and they wanted to do something about it. And first the fed regional president s and now the minutes confirm that they want the market to price at a higher probability of rate hikes this year. Having said all of those though mohamed, before we let you guys go. Its been highlighted that the brexit vote in the uk is just after the next fed meeting. Could that be the wild card that keeps them from raising rates just in case . It could. I think, you know, if you work backwards well definitely have a rate hike this year, maybe two. How early, july. Could it be june . Yes. But the polls for brexit it would have give a lot of confidence that british citizens will vote to remain. It is hard to say june or jewel because you have this massive brexit vote on the 23rd. Interesting. Yeah. Go ahead. The more general point is that the markets had priced the probability so low before 4 . Now at around 25 is more reasonable. Id put it slightly higher but i wouldnt put it at 70 or 80 . Mohamed, Rick Santelli. You are assuming the brexit vote is a negative if they leave. His three is unwritten. Whether the euro experiment will be a long lasting, in ten years when i look back and see it all break up and if the uk leaves, we could say wow they were brilliant early. I just find it so fascinating, that if they think the uk is going to pull out, that is assumed by everybody to be bad news. And i have a problem with that. Your thoughts . So rick but it is not just bad news. Long term i dont think this is alarming issue. For two reasons. One it will be replaced by Something Else. Britain will videoan Association Agreement with the eu. And second briden was trz a free trade zone. So there were different versions. Shortterm what will it be replaced by and how quick. You may see shortterm disruptions but over the longterm im not an alarmist at all. And dorothy . Yeah, so the issue really is uncertainty. That is what is the issue. And pushing it to june when you can come right back in right after it, no reason to jump the gun on it. Because there were could be uncertainty following it. Might as well get all the of the cards face up on the table before you have to show your hand. Dorothy, mohamed. You are saying its quite possible a july rate hike even though there is no press conference that meeting and we havent seen that since they started dining these press conferences every other meeting they could go in july that is a live option to both of you . Mohamed . Yes it is. Dorothy . Sure. Every meeting is a live option. And they want to try to get a hike in this year as soon as, they feel, possible. They just dont want to jump the gun on it. Guy, i think june is far more likely than july. I just have a feeling were going to go in june. All right. That is what makes a market. Appreciate you all. About 45 minutes to go here. Market was almost briefly looking like it might be in positive territory for dough. Down 46 again. The s p 500 is down a quarter percent. Nearly 5 points and the nasdaq is in the green by 11 points. Virtual reality. Googles head of vr gives us the scoop on the tech giants plans to stay ahead of the pack in the growing category when we come back. And bio tech. Thousands of data sets on new development and cancer drugs begin to be released tonight. Well tell you which stocks to focus in on. Welcome back. Watching the markets digest the fed minutes which released about an hour ago. The market was higher as soon as they came out, it turned lower and that is where we remain with the dow down 46. S p down 4icious the nasdaq up 10 and the tesla stock is rising. Citing increased confidence in consumer demand. And it makes sense. Just yesterday or monday they said they see Higher Oil Prices coming. So you would go with the alternative energy cars too. And yet today interestingly enough now that the dollars making a comeback well have to watch oil prices and see how they go. Well take a break. Holding with a decline of about 50 t dow was up about 75, as kelly pointed out when the fed minutes came out. And jeff lucas speaking with dave faber about an hour ago. Thats coming up. And embrace yourself for after the bell earnings. Tonight we have cisco, sales force and urban outfitters. Well tell you what the street is looking for and breakdown the results when they hit the tape. Nobody does it better than the closing bell team. Coming up. Somewhere you pay your Car Insurance premium like clockwork. Month after month. Year after year. Then one night, you hydroplane into a ditch. Yeah. Surprise. Your Insurance Company tells you to pay up again. Why pay for insurance if you have to pay even more for using it . If you have Liberty Mutual deductible fund™, you could pay no deductible at all. 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We started designing smart phones with specifications that will enable to drive the design. And weve created a headset and controller. And finally were working on a bunch of apps and experiences, like youtube vr, you can so you can step inside concerts and events and other things and experience them like you are actually there. And daydream. That is the platform. And its very important users have a really comfortable experience in vr and developers have that consistent set of functionality to target. So part of daydream is a set of specifications for the phones and weve been working again with the likes of htc and others to create phones that meet specs and we can guarantee a high quality User Experience and consistent target for developers. Clearly, Virtual Reality is seen as the huge growth category. I wonder about potential pushback from hollywood. As you now know Steven Spielberg the other by a was ringing his hands over the possible intrusion on Motion Pictures where the viewer would be more immersed in the Motion Picture and the be able to look and decide where to watch this movie. And spielberg is worried that will take away from the story telling aspect of Motion Pictures. How well do you think hollywood is going to embrace Virtual Reality . Well i think as with any new medium or technology there are new things directors and cinematographers need to figure. Just as they needed to figure how to use 3d or i max. I see vr as another tool in the Story Tellers tool box to bring them yet another way of bringing users and viewers into a story and enabling them to experience flit a new and more immersive way. I wanted to ask more how this works. We know you have cardboard. Is this a step you have above and beyond that . And what kind of headset and controller interface are we talking about . So daydream is a big leap from cardboard. We love cardboard because it was mobile and approachable and fun for everyone. And weve taken those tributes and also built something much more powerful. Much more immersive. And it turns the phone which is built to be a phone and the core of a vr system into the core of that very high quality immersive Vr Experience and the controller that pairs with it will let you interact with things. Point at things. Move things. And it can turn into everything from a fishing rod to a pan to flip pan takes in and much much more. So it is a big leap in terms of quality and immersion. Final question. We were talking to traders and investors. They want to know how do you make money off this . How does google think about moneting vr . We always think about a great product and experience first and then figure how to monetize it. But i think it is easy to see potential in vr, where for example you could have tickets to an event that were both real tickets to attend the event in person but also you could be there virtually in a by a that feels as if you are there. Thank you for your time. Appreciate it. Thanks for having me. I love that. Something as hightech as Virtual Reality relies on cardboard. And as the nice way to go back to basics here. Really interesting to see how people like using the headsets and controllers now . David faber joining us. Because the head of time warner speaking with him exclusively about an hour ago. What did he have to say . We havent speaken at least on camera and publicly for quite some time. And of course a lot has happened since we last spoke. But one of the key questions is the emergence of these over the top platforms that will include some bundles of programming and be available to people via broadband perhaps presenting opportunity for people to turn off the Video Service and the cable bill. And i did ask, well, given this new environment that is increasing in terms of competition and availability of various over the top bundles, what is your strategy . In most cases able to watch your tv not work on demand. You cant through it. You cant find out do i go back two weeks episode or what i do. What you are seeing right now finally is that the entire tv environment is finally getting on demand and good navigation. I think you are seeing it across the system there you hear it. But of course a key question becomes all right fine all of these platforms are available to you and the bundles that are being put together by various providers. Why are your channels going to be a part of them . And that is a key question for so M