Kinds of things. It occurs to me that we didnt know how good we had it. Our rates were kept low by a weakness in the european economy but we were having this great year in 2015. We had the best of both worlds. Rates will stay low. Yet the economy was growing. We were doing great. Now we get a. 2 read and europe is doing better so their rates are going up based on what theyre doing. So do ours. Ours go up so we go from 17onthe ten year to a 2. 3 and all these numbers are so low. They cracked me up with germany. 75 basis points. Oh my god its 75 basis points. But they have been negative. Are you changing your bet on when ms. Yellen is going to i dont think so. Does it matter . To her i dont think it does. As it became less likely they were going to raise in june or september our ten year yield went up almost 30 or 40 . Anyway. It doesnt matter. Thats what people worry about when the market starts setting Interest Rates and the fed loses control of the situation. You think this is the sign that they lost control. It does raise the question have Central Banks in the world lost credibility. When you know the ecb is going to buy everything in sight. These are tremors. You dont know. It starts slow and starts getting bigger. You dont know but youre open about the big one. In a few months we could be look back at this and laughing. The market was selling off when oil was going down. Now theres a lot of supply. Now looks like the market is selling off because oil is going up. It is. We thought it was deflation nary signal. But it didnt help retail. Not yet but we may never see it because now its coming back. We have been saying its been tough sledding in 2015. Were going to be below for the year again. Were right around the front line where we havent made any money. Why do you think yields are rising . I think yields are rising because of europe they were so low anyway werent they totally oversold anyway . But if you know the ecb is going to buy everything. Everything, theyre buying everything they possibly can. The ecb, thats like a no its like a big pond and a couplel of ripples in the big pond. Did you see bill gross . His new janice fund that hes trying to one week down 2. 4 in one week and they don even know how he lost money because he was short the german bond. He thought that was a great trade. But how do you and then i used to sell these things called zero coupon treasuries and what they do is you buy them at look at that chart. Thats amazing. You buy them at 200 and they mature at a thousand and 20 years down the road you dont get current coupons. In the last couple of weeks some of these zero coupon investments lost 20 . I was going to say if you are leveraged a move like that is devastating. Even if youre at low levels. Bill gross came out with his call on he still lost. But im saying his call was like that was it. But im saying he didnt catch it then. He caught it before. You knew we were going to you know your boy. My boy. You knew you were going to hear from him on the pay trido notes patriots. What time is it . 3 40 in the morning and hes trashing the paytriotspatriots. I do want to talk about brady but not right this second. Brady bunch. Some guy that has some kind of plays a sport and the ball has no air in it or something. Model wife . Yeah. We have to get you caught up this morning, two economic reports of note. Two weekly jobless claims and then march Consumer Credit later this afternoon and in earnings central today alibaba is the big morning headliner. Analysts are looking for the chinese ecommerce giant to post earnings of 40 cents a share. That would be at 2. 8 billion and then a cnbc alert this morning, Lumber Liquidators is halting sales of all the chinese flooring immediately. Theres criminal charges exposed last week concerning the foreign sourcing. They have been under fire since early march when 60 minutes aired the big report saying the chinese lamb nant flooring contained high levels of it. I dont know if ive seen a lumber ly inquiry dayiquidatorsliquidators. You pour it in your hair. But whats the other straightening thing that people do in new york . Well they have brand names. Brazilian blowout. In global news voting in the u. K. In that election is now underway and the results could have consequences for u. S. Investors. Wilfred frost joins us from london. Good morning. Good morning, joe. Polls have been open for about four hours in the closest general election in decades here in the u. K. The last set of polls we saw last night had the leader of the conservative party, the prime minister, David Cameron, neck and neck with the leader of the opposition ed milibands labor party but both are only polling in and around the mid 30 . Neither therefore likely to command a majority in the house of parliament behind me when we get the results. That means were going to need coalitions and deals and even though David Cameron is likely to win the most seats it might be easier for ed to form a coalition. The third Biggest Party is the Scottish Nationalist Party that dont just stand for the succession of scottland away from the United Kingdom but theyre to the left of our political spectrum. If 2010 is anything to go by then that period of Coalition Forming could give the market jitters. The ftse sold off around 3 in the five days between polling and the government being formed after the last election. Polls will remain open for another ten hours. This time tomorrow well know the make up of seats in the house of parliament but probably not know who is going to form the next government for days or even weeks. All right mr. Frost. Thank you so much. The outcome of this could mean that we could see a referendum on whether or not the u. K. Stays within the european union. Is our constitution, did we like copy wright that or something . Couldnt couldnt all these countries do it the right way . Can you imagine if we were here if Bernie Sanders gets 4 and you have to form a coalition horrendous. Why cant they wouldnt you let them borrow our system of government because its the best one. Many people in greece told me they wish we would go to the system where you knew once somebody won they have the position forever. How about the fact that the government can fall. We watched it all happened and then we designed the right way. Then how do you find out about the candidate . It goes on for six months and thats it. Its weird and all our problems would involved. Got to get the corporations out of its not the corporations. It would solve everything joe. Solve income inequality. It just might make things a little better. Lets check out this mornings stocks to watch. Tesla with smaller than expected loss on better than expected sales and the auto maker is backing its full year delivery target. Well talk to an analyst. Zynga shares getting a boost topping wall streets mark. The farmville game creator announcing more job cuts as it tries to turn around the business. Activism beating estimates on the top and bottom line and the video game maker is raising its full year. Congratulations for that. 21st century fox earnings topped estimates. Revenues also in line. Companys president says in his words a vast majority of customers want a bundle of channels. Just for you. Rather than to cherry pick networks. I read the quote. I continue to think that a low price bundle will attract more people than premium price individual pick and choose. Its going to be a slow process. A a slow process and i do believe theres going to be a bundle of some sort. I just think its going to be a very slim bundle or different pockets. But what if it costs more than the 800 channel bundle. If you want what you want and push these guys hard enough they only have 3 Million People taking it instead of 80 million theyre going to want more money. Youll have to pay up. Yesterday we talked about how each longterm deal that the networks are making for the individual sport to carry it just up and up and up. Multiples of what used to cost 100 million costs 2 billion now in some cases. And youre saying that as they do that thats going to add to the cost of buying each individual network. Youre going to pay one way or another. If you want espn youll pay one way or another. Its not clear to me that right now theres certain channels being subsidized by lots of people never watching them. So some of those channels fall by the wayside. You wont even notice though. Theres a lot of channels i never stop at. I agree but then the weather channel, mtv, vh1 nick having a hard time right now. But its a content problem. Sponge bob got long in the tooth. And then well go to the next headline but when you think about the nickelodeon problem its a function of netflix and on demand kids. It has nothing to do with the content. The content on nickelodeon is as good as anything else. Its not on demand. There is nickelodeon on demand. So its not that it doesnt exist. Thats not what pays the advertising bill. But theres alternatives and netflix has bought up so much childrens programming they made it available that way. Gets up before dawn every day and swims. I know we have to do this. So theres an article in vanity fair. We should talk about this. I dont know what to make of that article. Why not . Its about success. No i love him. I want to know who in the piece, theres people speculating that he is on a feeding tube and cant speak or anything and on the other side hes dictating to somebody and has the spokesman saying he wakes up at 5 30 in the morning and getting a hair cut and watching sports and you cant figure out who is telling the truth. I didnt know that background. Its very complicated. Im not surprised by the fact that he wants to hold on as long as possible. Hes so famous for holding on during that fire. Youre reading this article which is a fascinating article but i read it and i couldnt tell you have one side then theres these two women he lives with. Your buddy sends you a copy. I dont get it free. Can you talk to him i got an early copy. You get an early copy. Its fascinating. Back when he was 84 or 85 and consolidating his grip if youre 84 and youre able to move everyone out of the way and stay until 91 im already giving him the benefit. Now hes 90. Imagine in the singulairty happens he might make it. Who else was it . Liz smith said that everything was fine all the way through her 80s but once you get in your 90s people dont take you as seriously. Barbara walters wont go to lunch with her anymore or Something Like that. But she is 92 and saying now people arent taking me if we could only wish to be relevant all through the 80s. Like these guys. I want to be doing one armed push ups. I hope he is doing one armed push ups. And watching now. By the way its very possible that hes watching now. Crudes climb continuing. Wti now up close to 25 over the last two months. Prices have been rising every week since mid march. Every single week since mid march. Here to tell us where prices are head headed. Thats the question. Where are they. He may not have agreed to come on. No but he has been right that things were going to come back. I dont know if you thought they were going to come back this quickly though. No its a bit of an issue that they have come back so quickly. You guys were talking about yields rising. I think that this has been the rise weve seen is because of signs of tightening in the u. S. Oil market but also currencies as well. We saw the u. S. Dollar peak on the 13th of march. That was a 12 year high. Four days later we saw a six year low for crude prices for wti so thats not a consequence that that has happened and as we now see that dollar weakening were seeing crude prices rebound. That said i think this is a transitory thing. Well see weakness come back into the euro and well see weakness come back into crude prices as well because were still 1. 5 billion barrels over supply on a global basis here. So youre calling a top right now. I dont know if im calling the top right this second but within a few dollars, you know. Markets generally run further than you expect so the trouble is that prices now above 60 even getting above 70 on brent if we see that. Thats going to incentivize production to come online. Theres 5,000 wells in the u. S. Drilled and uncompleted. If those come back to market as there is the financial incentive to do so that could bring hundreds of thousands of barrels back to the market at a time when were still at an imbalance. All these prices are doing is encouraging that imbalance to last for a much longer period. I thought the Tipping Point was a 65 price point. Nobody is going back online until we get back to 65 in which case i would think it would be hard to get back to 65 at this point knowing the amount of supply that would come on. Well were getting kind of close to that level right now. You people that have hedges in place. That are continuing to pump on the expectation that the forward curve is correct and that we will get to that price in three months time. So theyre just hunkering down and holding out that well get there and the fact that we saw our first inventory draw for crude oil stocks yesterday for the first time in 17 weeks is giving some sort of expectation that the market is balancing when in reality it really isnt. We saw imports drop last week about a Million Barrels a day and thats why we saw the large draw down in stocks. So were still a wash with crude here and we need that fall back again. Okay matt. We will look for the pull back as the summer gets underway here. Thank you so much. Thanks. Coming up, wow, did you see what dan said . What did he say . Ill make a full screen of it. Its deep. Is he naughty or nice . Its im not going to characterize it one way or another. If i had to bet. Good tease. And shares of tesla could be ready to kick into overdrive. An analyst will tell us why, next. But first as we head to break, heres a look back at this date in history. And when you bundle your home and Auto Insurance through progressive, youll save a bundle [ laughs ] jamie. Right. Make a bad bundle joke a buck goes in the jar. I guess thats just how the cookie bundles. Now, youre gonna have two bundles of joy im not pregnant. Im gonna go. [ tapping, Cash Register dings ] there you go. [ buzzing ] bundle bee coming it was worth it saving you a bundle when you bundle now, thats progressive. Its a stock that is hotly debated on wall street. Check out the range of analyst price targets. Everything from 400 to 150 per share. Collin is with us. He has a neutral rating on the stock and price target of 2020. Good to have you here. Thank you for having me on. The Conference Call was almost completely focused on the battery launch rather than the cars. Was that the right thing to do . What is that reflective of . Do you care about the batteries . Its a new opportunity and theres a lot of hype on it and a lot of excitement and theyre one of the first to market with a product so i dont blame them for highlighting it and obviously the questions around it because its so knew and everyone is trying to understand and get their arms around the longterm. Theres a lot of questions there. Is it a car company or Battery Company . Today its a car company and theres a nice option to grow this business but even when we look at our 2020 estimate at 10 of battery storage, maybe that goes up maybe adding capacity for battery but today is the vast majority of the revenue is coming from cars and will be that way for the next five years. I saw analysis last night and the company broke out what it cost them for the strong dollar but he did a simple analysis versus how many they sold last time. How much they lost. How many they sold this time and how much they lost and the amount lost per car was up like 50 or something. But probably not accurate to do that apples to apples description. Part of the reason theyre down too. Gross margins are up sequentially and they even highlight down a year ago or something . The issue they have is that margins are impacted by px so their pricing recovery will be on a lag. So by q3 or q4 theyll recover that. They make it in the u. S. And ship it to europe. So its understandable. Its weird because you think about the potential for tesla which seems enormous. Its a 29 billion company which people say is overvalued. Some people. When youre only doing 10,000 cars a quarter. I guess. But theres Bio Tech Companies that have one drug or a couple of drugs valued at 50, 60 70 beside. 29 billion with elon musk and his car company and the potential for the future. I dont know what to think of that. It doesnt seem that expensive. You have to realize the Auto Industry is very competitive. For Drug Companies the opportunity margins are much, much better. No one makes a tesla car like that except for tesla. They don even care about gas prices or the environment. Theyre buying tesla and willing to pay a premium just to have the car. Over the next five years youll see a lot of luckslyxury brands. You really are neutral. I cant get either way with you. In the near term as they ramp more products, the molddel x will hit and gen 3 will hit. Were look agent the opportunity to get battery costs down. Some of their targets on battery costs are questionable. So longterm theres concerns. Near term i think youll have some volume ramp and height. Ran up last night and now its down today. Up a couple of dollars after hours. Its a volatile name. My guess will probably trade up today. There will probably be more momentum. Theyre quite bullish. Yeah but they had demand for 38,000. They kanlt meet that capacity. Whats amazing is theyre not that economical to buy. If i buy them as a homeowner it takes a dozen years before it pays me back . The technology could change dramatically. People are excited about the battery just like theyre excited about the car. Yeah, the residential for Certain Applications it doesnt have a pay back. Thats clearly a concern but were really really early days and thats the concern right now they cant get these to market and theres a small niche of consumers willing to buy these batteries. One to be off the grid and green and it does have applications as power back up as well. Great to see you. Coming up, were going to ask about the u. K. Election the cord cutting trend, ripple effects of unbundling and tom brady himself and deflate gate. But first a look at yesterdays s p 500 winners and losers. Were back in a moment. The network that monitors her health. The secure Cloud Servi