Health care in this country. Its a first on cnbc interview. Well talk about this ongoing battle on capitol hill, and how it could impact his business. Might see a vote this week. Always get a good read of whats going on in the industry when mark joins us. Looking forward to that very much. You saw muvaney giving a firey defense of the government funding deal reached in congress, and President Trumps tweet that the nation needs a good shutdown as he put it, we got the highlights on all of that coming out of washington. Coming up in a moment here. And microsoft taking aim at googles chromebook and dominance in the education market. Coming up, discussing whether mic microsoft can dethrone google. A guest thats a regular here on closing bell, and he happens to be the president of his local board of education, and he says they are very happy with the Google Chromebooks. Whats it take to get microsoft in the market . Thats coming up. Beginning, though, with apples earnings, due out after the bell, and josh lipton is at apple headquarters with numbers wall street is looking for, josh . Reporter bill, when apple reports today after the close, theres key numbers to focus on. One, of course, analysts do think apple, 52 million iphones in the Second Quarter implying growth of 2 year over year, and analysts say iphone fans could now be deferring upgrades because they are waiting for that new iphone to arrive in the fall. Of course, the key debate on the street is whether that new iphone is going to spark want big upgrade cycle that bulls are counting on. Also, this is typically the quarter when apple updates capital return program. Ubs thinks apple authorizes app additional 40 billion stock buyback and boost dividends by 10 to 62 cents. Beyond hardware, they Pay Attention to services, incoludig app store and apple music. In 2016, services representsed 12 of total revenue, surpassing the mac. They question whether services decouple from the iphone, meaning keep growing strongly as the iphone franchise matures. There are skeptics about whether that can happen. Find out what tim cook thinks about that dynamic on a Conference Call after the close. Guys, back to you. Josh, thank you very much. Well see you next hour. Joining our Closing Bell Exchange today, quincey crosby, keith bliss, and Rick Santelli from the cme in chicago. Keith bliss, this market just doesnt give up, does it here. It doesnt, but we see a divide occurring now, getting concerning for me. Bullish on the market the past few months. The large caps continue to rally, and the s p has 13 earnings growth, and thats good. Look at it, peel below the numbers, thats due to growth overseas and larger cap enjoys that. The thing thats troubling me about that, we had the canary in the coal mine here in the u. S. Is the small caps may be suffering a little bit. They are pulling back in a greater rush today, especially after the auto sales numbers. When we looking amount the data, scratching the head, why is the data weak over two weeks, but the large indexes rally. Now we know why. The area thats going to get hurt the most with the weaker data, gdp, auto sales, data, pricing data is the small caps, so, for me, the real key here for setting the trend and looking at the direction of the market is the rustle 2,000. A jobs report on friday, do you see the gap in the Economic Data and the earnings, which seem to be fuelling this market higher . Yeah, absolutely, but we always have to remember that the market is not necessarily the economy, and, i mean, they are divergences, but absolutely correct. The majority of the big push in earnings Revenue Growth is due to the weaker dollar coupled with demand finally coming from overseas, and the exporters have had a wonderful run at the expense of the domestic names. If we were in a state of unequivocally strong hard data, i imagine the dollar rise, and exporters weaken. Good for small and mid cap. Well, speaking of which, bringing in phil lebeau, you have the latest figures for the previous month, and expectations were not very high. Did they meet them . They did not meet them, bill, according to auto data, crunching numbers, the sales rate in april, 16. 88 million, a decline of 4. 7 compared to last year and march of this year, a decline in auto deliveries of more than 8 . Sales right. Guys k ba guys, back to you. No strong numbers there on autos. In fact, retail is suffering all along here. There is a premium on data right now. Were so used to the First Quarter being weak only to gain some momentum in the second and third quarters. If it does not happen this time, you say that the treasury market has been telling us this for some time. Today, as we speak, its not geopolitical risk pushing that yield down, but its worries over growth in the economy. Rick, with the tenyear yield sitting 229, stuck at below the 230 level, you play into that . Its playing in, of course, and the jobs report tomorrow and on friday, investors push back, but whats fascinating, and quincy is spot on, thats the big channel. Not horrible data, but misses. When it comes to cars as you heard phil. The year over year month over month numbers do not look good. More to the economy than autos, but as the canary in the coal mine, we are on the cusp of breaking below an established range. Now, argue weve closed as low as 216 over the last several weeks, but to have so little of a yield bounce from that level and have the dollar index here under 99, and i think both may go together, that were either at the bottom of a range or were going to breakthrough the downside, and its looking more like the latter, so i think the jobs numbers may give us that extra push. One thing i want to point out, of course, and that is the geopolitics that quincy mentioned, the markets are not interested in the second round of france. Now maybe thats a mute point to many, but the spreads, no matter how you handicap europe, negative rates, central banking aside, investors are pleased with the general outlook at this point. Well, that election is on sunday, and the central, market friendly candidate has more than 20 lead in the polls. So far. Technology is on fire here lately. Would you buy quickly, would you buy technology at the levels with amazon and alphabet and apple at alltime highs here, keith . You have to be selective like you always do looking at a sector. Im not necessarily sure i would be going out and buying the broad sector etf at this point in time. We actually have technology overbought, and i would expect a pullback on the run just had. Listen, look at the big names in their respective industries, theyll push forward not stopping any time soon. What do you think . The leadership now, though, are the ones coming up with the research and development and new products, looking ahead, and i think thats why people buy them specifically in order to be there for that next new push in development. All right. Well see what apple delivers today. Up 7 this year. Thank you for joining us today. Back to phil lebeau, oscar munoz testified about the passenger removal incident, reaccommodation was the word used at the time. Phil, you got to chat with him briefly. Briefly. He listened to members of congress for three hours with a straightforward message, clean up your act, or we will. We have a problem that as it the only people to fix it. That should be the take away from today is seize this opportunity because if you dont, were going to come, and youre not going to like it. Time and again, the airline executives, including oscar munoz, asked to defend overbooking flights. Southwest will stop overbooking flights next week. After the hearing, i put the question, are you worried about congress and washington fu airlines . The sense in the room was one of an admonition to get your collective stuff together, you, the industry, and you can avoid us, which i think is fair. If we dont do what we said, then we should be able to stand up to whatever they might offer for us. Thank you a, everybody. It will be interesting to see what happens. Remember, theres a Senate Hearing coming up on thursday. Similar questions, hear similar answers from the airline executives, but, guys, beyond that, lets see if this congress, which is, you know, its a republican controlled not ones to do a lot of regulation if they push to ban airlines from overbooking flights anymore. Yeah, i think thats a good point, and the stock market doesnt seem worried about it. Airlines, the best performing Industry Groups today, phil, but what do they do to impose . Specifics out there . I think the overbooking would not have a huge impact. Heres a concern i heard from a few people. What if congress says, you know what, youre making 2. 6 billion charging people to change their reservations. Thats egregious. Maybe you should not charge people to change reservation. That would impact the airline stocks. Or thank you very much, phil, doing double duty today. See you later. News alert on the phone call between President Trump and putin. Eamon, what did you learn about it . Reporter thats right, bill, we did not listen in the calls, but we have a readout afterwards from the staff, which is what we have here between the call of trump and pew tip at the white house earlier today. The readout says the two men talked about syria, saying President Trump and president putin agreed suffering in syria has gone on far too long and parties must do all they can to end e the violence. The white house says the conversation was a very good one, and it included discussion of safe or deescalation zones to achieve lasting peace for hum humanitarian and other reasons. A couple other topics discussed here, they said the United States will be sending representatives to cease fire talks in kazakhstan and discussed working together to e eradicate terrorism throughout the middle east, and the white house said they talked about how best to resolve the dangerous situation in north korea. Interestingly, the readout from the kremlin of the call, and in that readout, it said both men spoke about the idea of a face to face meeting between putin and trump at the g20 meeting in germany. This readout we get now from the white house is silent on that idea. They are not clear whether that was something they agreed to or not. Well press the white house for more on that, guys, back over to you. All right, thank you very much. See you later. Wouldnt you love to listen in on the phone calls . That one especially. They say to each other, i think we should coordinate more on north korea and on terrorism. I agree. Okay, thanks for calling. I think thats just the readout. I understand. We dont get the details. But i want to hear the other conversations going on there. Anyway, welcome to closing bell, 48 minutes left in the trading session today, dow up 18 points right now, and we are waiting for big numbers after the bell. Apple is the headliner. Fallout from a scrapped merger did not stop aetna today, and the ceo is with us first on cnbc next discussing the latest Earnings Report and how proposed Health Care Reforms could reflect future profits. Not just apple, but mondelez, etsy, a few big names reporting after the bell tonight. Well bring you the numbers and instant analyimaalysis as they e tape. Youre watching cnbc, first in business worldwide. The power of a low volatility investing approach. The power of smart beta. Power your clients portfolio with powershares. Before investing, consider the Funds Investment objectives, risks, charges and expenses. Call 8009830903 for the prospectus containing this information. Read it carefully. Distributed by invesco distributors inc. Containing this information. Read it carefully. At crowne plaza we know Business Travel isnt just business. Theres this. a bit of this. Why not . Your hotel should make it easy to do all the things you do. Which is what we do. Crowne plaza. Were all business, mostly. Molina healthcare up 15 . The medicaid provider announcing sudden departure of two top executives, sons of the founder, thats ceo mario molina and john molina, citing disappointing performance, chief accounting officer, joseph white, interim president and ceo now, and both brothers continue to serve on the companys board in the meantime. Apparently, the companys never been without molina family at the helm from the beginning. Could increase speculation of a sale. They could be the barrier. Something to talk about there. Aetna up 1 despite a First Quarter loss, which was expected, they beat expectations, and, in fact, upped gienup ed guidance for the rest of the year, loss attributable to the failure of the merger with humana after being rejected by the department of justice. We have the ceo of aetna, hi, nice to see you. The big hit, the failed merger mark, medicare a big growth driver for you right now . Well, its medicare and medicaid, but medicare is the Fastest Growing of the two. And what are you seeing in terms of the Obamacare Exchanges . I know youve been pairing back. You seem to indicate that more to come, what can you tell us . Are you going to be pulling out of more of those individual exchanges across the states . Yeah. We expect to lose around 200 million, 220 million this year on the exchanges with only a quarter of the shift we had last year, sub stannuates the view from a year ago withdrawing from a number of other exchanges, that we have the potential to lose 900 million, and were on that track, so were e evaluating the markets as we speak, and weve already withdrawn from iowa, but well be notifying other states here shortly, but we only have four states remaining. Our presence will be smaller than it is this year. However, as you well know, mark, theres talk about, again, reforming aca, and one of the amendments now in the current bill thats being talked about will allow insurers, like you guys, if youre in the exchanges, raise premiums on people with preexisting conditions, essentially, would that help . Would that be something to help you stay with the exchanges . I dont think its a matter of raising premiums on people with preexisting conditions. I think people with preexisting conditions, people under the age of 26, should all get insurance. Anyone who applies should get insurance. But the cost, right . Well, yeah. There is a cost associated with it, so i think the biggest problem with the aca is how it is funded. If it were funded appropriately, all the people get coverage. You were losing money on the high risk individuals including the people who we would call preexisting conditions, if you were able to raise premiums, does that change the equation for you . Again, defends how its funded, bill. If funded on the premium basis, no reinsurance, the cost sharing reductions do not show up after september, and none of it works. So there are a set of interconnected Financial Relationships to exist in order to support a market like this. So what are your overall expectations as to what the House Republicans are going to be able to pass if anything as soon as this week is the uncertainty hurting your business at all . No, its 2 of the revenue, sara, and its a negative number on earnings, but a small one, so, for us, its an important market from the standpoint of people who are insured and have adequate access to Preventative Care are better in the long run than people that show up in Emergency Rooms only when they have to. So finding a solution for this for all americans and funding it appropriately will get us where we need to be, but currently as structured, even with the continuing resolution of funding the Cost Sharing Reduction Program for the people currently in the program through september, is not enough to get people engaged in the exchanges again. As you know, were in the middle of legislative process, and being in the middle of the legislative process is so unpredictable, i imagine even las vegas would not take our time. Im curious, if you had been allowed to acquire humana, would you have stayed in more exchanges . I know you talked about, look, we have to pull out of more exchanges if youre not allowed to get in with this medicare provider. That would have given you scale in medicare where a lot of the money is these days. Would that offset losses incured by staying in the exchanges then . The losses associated with this program would have been more tolerable. I cant say wed stay in all the marks, but the capital base would have been more supportive of it, but thats bridge water under the bridge, and so were moving on. Yep. But we have new administration, one that is touting itself as more probusiness and friendly to regulation. After the blocked health care mergers, will the industry pass at it again in the Trump Administration in terms of m a . I think therell be review to vertical integration versus horizontal. Could be more deals done, but the court cases were clear that efficiencies are not something to be relied on or counted in any significant way, and thats a tough standard to set in precedent for any mermgmerger. Speaking of the new administration as we know, they are talking of lowering Corporate Taxes to as low as 15 , whats that mean to the bottom line, and, again, would it have an impact on how you view your participation in Health Coverage out there . Managed health care. Well, bill, our current tax rate is 42. 5 . 15 is a lot to offer in supporting programs. Do you think its likely . No. What are you betting on . 27 . Okay. Not much lower unless theres the border adjustment in some way, then maybe 20 . What would you plan to do with the savings . Well, we have minimum loss ratios and reinvest back in the business, meaning lower prices for customers or lower rises in prices for customers as we go for product. All earnings go back in the companys operations and to the degree were gated by minimum loss ratios to be returned to the customer in benefits or pricing. Meantime, your stock trades alltime highs right know, so, clearly, wall street likes what you are doing. Mark, good to see you, thank you for joining us. Thank you, sir, thank you, bill. You bet. Mark, the ceo of aetna. 45 minutes to go, a little o