Fortt, we have vanity fair special correspondent and contributor nick vilton, and we will get to our guests in a moment, but nasdaq is back in the green for the month, and s p is 2023, and over to the mary thom sopn we just got the Dow Jones Industrial data, and the housing data is rising, and so that gave a lift to the market in the large part because people are starting to expect the latest poll showing that a brexit is likely, and that helped with the data off of the highs of the day. And we are watching monsanto, and the Company Expects to the reject the bid from bayer and seek a higher off, and the stock is up 3 . Lets check the dow movers today, and their reflective of the gains that we are seeing in the broader markets. It is tech as well as financial stocks leading the dow higher as visa and microsoft are taking the top spots, and the check with the i. T. Financials and health care. And these are the worst performing sectors, and one trader is telling me that what we are seeing here is a short squeeze, and some of the s p leaders are that the market should help pick up for the second half of the year, and that is helping the stock move up, and of course, we mentioned the Home Builders and not only strong data on the new home sales, and Toll Brothers with their stock up, and the res of them benefiting from the blockbuster numbers on the april read on the new home sales. The dow is up 209 point, and back to you, carl. Thank you, mary thompson. To tech news, facebook is revamping the trending section after that meeting with the conservatives. It is going to be editorial guidelines and a top ten list of approved website, and they said they did conduct an internal probe, and did not see any bias, but nick, we have talked to political types who were in the meeting with zuckerberg, and they are seemingly satisfied with the meeting, but how is that playing in the valley . Well, two different schools of thought. The people who are the liberal tech folks who are not thinking that there is bias and they have their viewpoints on it, but also the tech media, and some of the folks that i have spoken to there have a philosophy i which i share which is that everything has bias, and the to say that, you know, this is a fundamental problem with news that has gone back centuries that we try to say that there is no bias in news, and the reality is that there is bias in everything that we do, and that is human nature, and what is disturbing about facebook results is that it is more understanding if they had said, hey, we did some research, and found out that there is a little bit of the bias na both sides, and so we will even it out with a little bit of the bias on the right and the left, and everybody is getting the right thing in the middle, and to say that there is no bias, i dont see how that is possible. I just dont. Well, i mean, the statement seems to say that the no intentional buyia, and possibility in the system that every now and again, somebody might have put in something they should havent, and they are trying to fix it, but to me, this is an affirmation of this being overall nonstory, and the assertion is that there were people inside of the system who were explicitly excluding con sser vative viewpoint, and facebook is saying that didnt have it, and where are you on this . Well, the part of the problem is the lack of transparency here, and i actually find it troubling that they are going back to relying on the algorithms, and it is going to make sense to have some people to be in the room to make some editorial decisions, but you need a process for it, and you cant go rogue to make decisions. Be i the way, i was looking at facebook trending today, and there was uber and lyft and International Turtle day. No way that is really bubbling up by algorithm. And somebody made that happen. Somebody made that happen, and somebody thought that International Turtle day is an important bit of news for today. Well, it is important day. And yeah, happy turtle day. And we know it is not the turtles, because they are not fast enough to get that. Trending. And we spoke to somebody from the American Heritage foundation, and the names google and twitter are coming up on the other platforms that at least conservatives and who knows what the liberals have in mind that they are looking to target, and should all of the guys be prepared . Of course. I mean, this is the way, and especially on the election cycle, and this is the first true election cycle to be seeing the importance of these networks and the platforms to sway opinion. I wrote a piece in vanity fair last week about how the polls are broken in part because leading into the primaries and so on in the uk and all over to the place, in part, because, because of the speed of the social media and the speed with which news proliferates around the world, peoples opinions can change in the second. In the morning you can be polled and say, hey, i like ben bernanke and then later on bernie sanders, and you say, hey, i like him, and then read something and say, hey, dont like him in the afternoon. So it is a war for the next few months. Did facebook win or lose through the whole controversy and bubbled up and a big deal, and then zuckerburg with the meeting with the leading conservatives and put this thing out, and dead for them in a good way or wounded . Well, it is not dead yet, but, you know, facebook trending is very, and facebook trending was trending just on facebook the other week, and now it is not. So it has a short news cycle probably, and they have taken some steps, but i dont know if they are necessarily the right steps, but this is not a big wound to them in my opinion. And like some of the changes to twitter will be trending if they are not already. And up next, tech crunch is saying that snapchat is raising money to value the company at more than 22 billion. Kayla is joining us from boston with more on that story. Well, carl, it is hard to keep track of the times that the Companies Like uber and snapchat raise money, because they are in a perpetual state of fundraising, and the fundraisers who are wanting to put their money into the giant decacorns, and they have just approached them, here is the money, and here are the terms and are you interested, and so to see a company like snap tlt chat in talks to the raise more money after closing in an earlier round of fundraising already this year alone is not necessarily surprising. If they are raising funds of a certain size, we should see a filing of who is participating and what are the terms, and what is the valuation of the company, and the round is. We dont have that right now, and so we are going off of the reports, but it is going to be interesting as soon as we get the details to see if we can glean anything about the company or Companies Like snapchat taking while to getting is good. Okay. Thank you, Kayla Tausche. And what are you making for the numbers, michal . Well, a few more numbers 10 billion video views which is an incredible number. If these numbers are correct for valuation, this puts snapchat up there with the highest values Tech Companies and the pall pallenteers of the world, and so it is interesting to see the increase in tech, but we will watch that one and jon, snapchat management is thinking several generations down the road. And yes, that i have a brilliant thing they are they have a brilliant thing they are doing with the video the create a little bit of a time, and then encourage you the stitch it together in a story, and one story plays after another and it is an addictive engagement they have hooked up there, and then word to twitters in the private market, and so you dont know how that is going to be translating on the twitter market cap, and it is hitting the lows and down to 10 billion but you are wondering in the light of day, when we start to see whether snapchat can scale, how many advertisers it can get and sustain on the platform and worth that . Is twitter worth more . We will see. And nick, what are they saying at twitter about this snapchat valuation . Well, i would say probably not much, because they have bigger problems, but it is interest, because i was in the valley last week, and it is fascinating that i met with the vcs and the entrepreneurs and the one thing that everybody is talk about is about a company not based there, and it is snapchat and they are petrified because it is affecting instagram, and facebook and h hampering the twitter stories, and moments kind of the response to the snapchat, and people are worried, because this company is a juggernaut, and it is the one that, i wrote in the first story about snapchat and i called evan speeg hl in the dorm room and i thought that it would literally disappear in a week, and it is the company that everybody is talking about and it is only a couple of years ago and i believe it will continue the growth. And it is interesting to see how quickly they have been innovating and outinnovating everybody else. I am not on snapcha chat, and w are not the right demographic. And i asked if anybody is using it and is it over, and how wrong and i am on there trying to figure it out how the youngs are doing it. And yes, you can read the editorial after it, because it is like going to the m. I. T. Yes, it is true. You can buy the movie tickets there on snapchat and getting the broader and the the larger advertisers. Why would you do that . Get off of my lawn. And nick, do you think that was it a failure of imagination or execution that other platforms couldnt do this what snapchat is toing . Well, it is interesting, because i have spent time with ed spiegel, and the thing that i u find fascinating is that every ceo in the valley has the merits and zuckerburg wants to rule the world and put chips in our head, and larry great, and everybody has the merits, but what evan spiegel is unbelievable at is understanding the millennials and it is amazing to see him talk about these thing, and the one thing that was the moment of zen to me where i said, okay, this is a company that you should be afraid of is when they launched a new sticker product where you had to pay for the stickers a few months back, and they launched it, and they didnt put out a blog post, but people started to use it, and i spoke to somebody at snapchat at 11 00 a. M. And i said, you have not notified it, and how many people are using it and they said 80 of the network, and so tens of millions of people are telling each other, hey, i know this thing that you dont know, and that is what they are amazing at. And now, an exec at oracle who was at snapchat for a while thought deeply about this, and how people primally communicate and that intelligence is how they communicate. Filters. It is all about the filters and the stickers. And talk about social and more. Thank you. And now, more data on the new york fed and the delinquencies, and we have Steve Liesman back with more details. The fed is reporting that the total Household Income slipped a little bit and now at 2. 5 trillion and it is the second quart quarterly rise and the second increase in mortgage debt since the Great Recession began going with the good housing numbers, and increases in auto and student loans, but the decline in credit card and home equity debt 400 billion below the peak of 08, and so the per capita debt is rising. So instead of looking like a debt cycle, it is increasing, and newly delinquent loans are rising. So by contrast in the teeth of the recession, the stock of the delinquent Consumer Debt was increasinging by more than 400 billion a quarter n. This quarter, new foreclosures and the bankruptcies both fell. So s so it is a mixed signal on one side. On the babk side, speaks of the underwriting loans to best credits and the best Credit Scores before the recession got 25 of all mortgage and the worst got 13 , because of the subprime lending and now the best will get 60 of all of the mortgage money, and the second tier has fallen sharply to 32 , and the bottom the tier, no money for them, and just 4 of the current mortgage originations. And it is good for the banks and the credit cards, but terrible for the consumer who doesnt have great credit. And it is if they are too sheepish, it is where they remain, and total auto and student debts remain above a trillion dollars, and the 90 days plus delinquent is slightly hi higher for the autos. And so not a bad picture of the consumer, and their debt and certainly not one to suggest that we are in the later innings of the credit cycle. Carl . Thank you, steve lease map. Finding value in a Credit Sector that is negative for the year. And plus the fight over viacoms future and the latest in the redstone saga. And plus, a venmoenabled chip into his hand to ditch cash and credit cards. Was it worth it . He will join us in a moment on sigh squa squawk alley. We are back from the jpmorgan telecom and media conference. And we are joined by gavin baker, who is a top portfolio manager, and thank you for joining me here. Thanks for having me, kayla. You have to always measure the tradeout of momentum and value, and you have both, but how is the tradeout playing out in 2016 . Well, value is winning out in 2016, but the year is not over. And you is named like solarcity and groupon, and which some Portfolio Managers would not be willing to touch, because the swings are volatile, and why are you confident about those names . Well, groupon has a new ceo, and they are beginning to have progress, and added more new customer s customers in the last quarter than at any time in the last 12 quarters, so i am optimistic about the ability to the make progress under the new ceo who ran marketing for amazon for a tenyear run, and for solarcity, there is more of solar taking shares of the electricity. And you were not dismayed . I was not happy that it went down 20 or 30 that day, but i think that as of today, it is right back to where it was before the quarter, and it is very important in the volatile times to tune out the volatility and focus on the long term. And meanwhile, the top holdings in the portfolio, and amazon, and alpha, and alphabet, and facebook, and hardly contrarian picks, i would say, and why are you sticking to those, and in some cases adding to those . Well, i think that alphabet has not been a contrarian pick for a long time, but it is a great pick despite being to some degrees a consensus stock. So i dont really, i guess i dont care if the stock is contrarian or consensus, but i want to think about where it would be 3 to 5 years out, and compare t compared to the current price, and so if it is a gap, it is a great holding. And what will take google or alphabet up the next leg . Well, sin dar talked about going from the artificial first company, and Machine Learning is one of the underappreciated changes happening in world right now. And alphabets victory in the alpha go competition is an important moment, and has Machine Learning to become more pervasive in the form of a a i assistant or selfdriving car, it is going to be valuable. And selfdriving cars, and 1. 3 Million People die in the car accidents, and what would a drug be worth that is going to save 1. 3 million a year, and that is what selfdriving cars are. And people are wondering when to get that and when some of the private companies will go public. The private investments are convertible, and 3 of the portfolio, and i imagine that you do have a window into the private Company Valuations and the performance, because you the holdings and im wondering what you would say at this juncture . Well, kayla, we cant comment about the private companies, but i am saying it is a small part of the fund as you referenced and generate ad ld a lot of alpr the fidelity shareholders, and we are selective and we own the best of the best when it comes to the company, and uber and spacex and snapchat. Would you put more in . I cant comment. And the fund was down sharply at the end of the year, and it is quite an anomaly, and you are up 15 , and take us to the second half of the year, and down 9 , and do you see the tide evening out for the otc fund . Well, i try hard not to focus on the short term, and since i took over the fund in june of 2009, it is up 90 ahead of my competitors and so i am using the volatility to set up the fund for the next 3, 5, 7 years. Thank you, gavin, for joining us, and your insights. And now, we will send it back to you. No nonsense, a fan of groupon and google. And up next, the fight over viacom, and the fight of redstones new appointee, and the dow is now up 200 point, and ton of green, and stocks are in rally mode. Back in a moment. The fight for viacom continues. Philippe deman is filing to block some of redstones efforts to oust him and fellow board member George Abrams and trying to block new trustees. The yale school offing management dean for executive programs is joining us now, jeff, and tell us about the p performance has not earned rave reviews, but on the other, there is no clarity into Sumner Redstones decisions, and the decision process on his end of thing, and if you are the investor, and what outcome should you be pushing for here . Well, as an investor, what you will often see is the break of the value of the businesses that are run by what i have termed a monarch, and i have wrote a book about this type of thing called a heros farewell and the monarchs are 6 to 8 of the u. S. Industry. You will find them heavily in the media industries, and jeff bewkes and Rupert Murdoch are exceptions, but there is a lot of uncapped value, is you would like to see it delivered in other hands. Right now, the stock is down by half, and this is one of the highest paid ceos in the country, and i think that he ranks as number one for the mismatch between pay and performance, and this is philippe dolemahmann, and it ist of the reason for redstones behavior, and Steven Hawkings have written many books, but unable to communicate because of a disease. And in the tom fres tton in hal of that time, so he has a history of destroying people in the pipeline who could be a successor and a brilliant visionary, and obvious ly, toda, he is not, but there is a good plan to deliver this to the trust and the National Amusements to make a change happen. And so, jeff, as a, for investors watching and th