Story. When i woke up this morning, nobody was thinking about wives and other things. When you hear a hijacking story and an explosive belt, you immediately jump to the terrorism activity. This one sounds a little different. First of all, hes actually released most of the hostages. Usually dont hear its about a woman. Its about reuniting with his exwife. Thats what this is. Its, i guess, different than if he was im just saying, a very different opinion. Its not fun. He wants to reunite with his wife. I could maybe see the other situation. He wanted to leave, get me out of here. The Egyptian Ministry of Foreign Affairs told the guardian this morning hes not a terrorist, hes an idiot. Terrorists are crazy, bus they arent stupid. This guy is. Im sorry. Its not funny. No, but its so that was a quote. That was a quote. Hes not a terrorist, hes an idiot. Thats what apparently the Egyptian Ministry of foreignguas morning. Again, there are some hostages still being held. Hopefully we can receive some sort of resolution. I bet its not a real explosive belt. There are huge questions about that. In the meantime, we are also learning more this morning about the man shot at the u. S. Capitol yesterday afternoon. Police say 66yearold larry dawson of tennessee walked into the Capitol Visitor Centers was shot and wounded by police after he point what had appeared to be a weapon at the officer. The weapon turned out to be a pellet gun. Dawson is in stable but Critical Condition this morning after surgery. A bystander was hurt but not critically during the shooting. Dawson was known to capitol police. He had been ordered to stay away from the capitol after an outburst during a congressional session last fall when he interrupted proceedings by yelling, i am a prophet of god. Hes charged with assault with a Deadly Weapon and assault on a Police Officer while armed. Also, whats on todays Economic Business calendar. Fed speak topping that agenda. Fed chair janet yellen will be delivering remarks today. Shes coming to new york. Shes going to be at the Economic Club of new york just after noon eastern time. Thats going to be followed by a q a with moderators. John williams is also speaking in singapore at this hour. Dallas fed president rob kaplan will be in front of the mike this afternoon. So a lot of fed folks to hear from. Maybe well finally get an answer out of janet yellen on this debate raised by the hawks last week. Well see whether theyre all in the same place now. The monthly s p caseshiller home price index is out. Thats followed by consumer confidence. Finally, a former partner at pjt partners, formerly blackstone, has new been arrested on charges he stole 25 million from investors and tried to take another 70 million more. He posted bail of 5 million on criminal wire and securities fraud charges. He was an employee at Park Hill Group, which is owned by pjt and is that spinoff of blackstone. Pjt has fired him and initiated an internal investigation. Shares tumbling on that news. Who wants to play anchor right now . Anybody . Sure. Ill take it. In corporate news, yahoo has set a deadline for april 11th to submit preliminary bids for its Internet Business and asian assets. The wall street journal reports that means yahoo could close a deal by june or july. The Company Launched an auction of its core business in february after it shelved plans to spin off its stake in alibaba. Lets check on the markets this morning. Futures were indicated higher initially. Now in the u. S. , indicated lower. Not large losses yet. Down about four points on the s p. The dow jones indicated down about 30. The nasdaq indicated down about five. It wasnt an issue in europe this morning. Europe was either flat or slightly in the green. That may be why we have weakened as well. Fractional losses in germany and england. In france, up just a little bit. I saw in asia the shanghai was down a little bit. Down 1. 25 . Oil probably not helping this morning, down almost 1. 8 , down 70 cents on wti. 38. 68 now. Government announcing it has successfully accessed the data that was stored on that iphone used by one of the San Bernardino shooters. Eamon javers joins us now with more. Good morning, eamon. Good morning, joe. Jae, an absolutely stunning develop yesterday in this longrunning fight between apple and the u. S. Government. The government announcing yesterday that not only had it discovered a method to get into that locked iphone, but it already accessed the phone and accessed that information. So now we have some dueling statements here from apple and the fbi. Start with the fbi on apple. The fbi saying, during the past week, to include the weekend, extensive testing of the i foeb was done by highly skilled personnel to ensure the contents of the phone would remain intact once Technical Methods were applied. The full exploitation of the phone and followup investigative steps are continuing. Apple, for its part, saying that from the beginning, we objected to the fbis demand that apple build a back door into the iphone because we believed it was wrong and would set a dangerous precedent. As a result of the governments dismissal, neither of these occurred. This case should never have been brought. So a couple of big open questions here that the government was not answering for reporters last night on a Conference Call to brief us all on exactly what was going on here. Its not clear who brought this technique to the governments attention, what specifically the technique s or whether or not the u. S. Government will share this new security vulnerability with apple. Apple had earlier said that if they figured out what this was, they would want the government to share that information. Not clear now whether the government will hold that information for use in future cases or will share it with apple so apple can patch what it will see as a security hole in its systems, guys. So a lot of issues raised here. This issue seems to be over with. But the ongoing debate about security and privacy, thats going to continue. Eamon, you look at this, trying to be an armchair quash here, whos the winner . Thats a really good question. So apple suffered some damage here. Apples damage is that, a, it was resisting the u. S. Government in a terrorist investigation. Thats never a comfortable position for a company to find itself in. And b, we now know there is a vulnerability to the apple iphone, at least this particular model running this particular software. So that would seem to be some reputational damage for apple. The government also getting some reputational damage here. Seen by a lot of people across the country as overreaching, as sort of big brotherish in attempts to get into the iphone. I think theres damage for both sides here. The government ultimately failing to make its case here and failing to convince apple to do what it wanted. Ultimately, apple gets what it wants in that it doesnt have to write the code. But the government also gets what it wants. Eamon, i hadnt thought about it until you were just going over that language again. When apple said in its statement it was successful and not having to build a back door, that have the overreach the government was really shooting for, what happened . Why couldnt there be some sort of agreement reached quietly without all this attention where apple provided them the information that was in that phone without creating a back door or doing what this hacker has supposedly done . Thats a really good question, becky. At some point they were talking behind the scenes very privately about whats going on here. Then this thing exploded into public view. It became really heated, really personal. There was a real level of anger here that you rarely see in these kinds of public debates. A technical issue like this one. It probably was some sort of government overreach that apple said, forget about it. And thats exactly it. What apple was objecting to was being forced to write the code itself, brand new code that didnt exist that would give the government access. They said theyre willing to help in any way they could, other than writing what they saw as a master key back door to the iphone. They said it would be dangerous if that code somehow leaked out and escaped into the wild. Its just kicking the can down the road because a company is going to come up with a way to make a warrantproof phone. Thats what the government is fearing. And we have to decide whether youre actually going to pass legislation that would make that illegal to make a warrantproof phone. Youre going to need that level of security in this world eventually. Its kicking the can down the road, but sooner or later, youre going to have this argument again. President obama said this at south by southwest the other day. He said, look, this debate about security of the iphone is sort of fetishizing the iphone above Everything Else. We as a society have decided that Law Enforcement with a warrant can go into your house, can search your bedroom, look in your underwear drawer if theyre conducting a legal investigation with a legal court order and a warrant. Why cant they look in your phone . Whats the difference . So from the governments perspective, this is very straight forward. From a civil libertarian and technology between the Arctic Monkeys and the foals. Between those two. It was a hot seller. Two issues for you. One, do you think the fbi will ultimately come forward and say what they found on the phone, and does that present potential brand damage to apple if, in fact, theyre able to say, indeed, we found information about another cell or other information thats leading us to an investigation that would help us fight terror. What does that do, if, in fact, theyre able to say that . I have no idea whether theyre going to turn this hack, information over to apple. Probably its the case that apple has some sense of how this is possible, right. Whether the government says specifically to apple, heres what we did, steps, a, b, and c. I dont know. Its a valuable tool for the government now to get into these phones. Theres no way theyre turning that over. Last night i was reading through material. The fbi has talked about the principles of which they would give over that kind of information, if they hack something, when they would give it over. The principled thought to the extent they have one on this is that they do want to give over how they hack things to the companies if they believe it represents a potential threat to the public. Right. But in certain instances, they say theyll hold back and not provide the hacked information or at least how they attempted or approached the hack for some period of time so they could exploit it if they think that there is if they think it doesnt present a huge problem to the rest of the public. Because, by the way, this has to occur directly on an individual phone as opposed to being able to hack the icloud or gmail. I imagine its possible they dont provide this information to apple any time soon. Absolutely. And the other big question here is going to be bhafs on that phone. What was this fight all about in the first place . Was there actionable intelligence on that phone about what syed farook was up to, who he was connected with, what steps he took before the San Bernardino shooting, how that plays out will embarrass one side or the other, either the government if it turns out there was nothing there, or apple if it turns out there was Real Intelligence there. Eamon, thank you. Giving us a lot to mull over today. In the meantime, the fuel thats been powering the bull market higher could be losing steam. Stock buybacks have slowed to a 21month low, raising fears that a downturn could be near. Joining us now is quincy crosby, Market Strategist at prudential financial. Also, president of the iht wealth management. Welcome to both of you. Good to see you. Thanks. Lets talk as we head into earnings season, this idea that stock buybacks are down to a 21month low. Definitely seem to be losing steam. Do the Companies Know something we dont . No, i think basically they may be wanting to hold on to measure cash, watching the market themselves. The fact is before the earnings season, youre going to have a blackout period. Which is what were in right now. Exactly. But nonetheless i think this is a trend thats been coming for months. Exactly. This goes to the point that fundamental really are going to matter. Whether or not you think janet yellen is going to be accommodative today or not, hawkish, dovish, the fact is were moving closer to where we need growth. We need fundamentals. We need Revenue Growth to pick up. We need the bottom line to Show Companies are doing well. You think well see that . No, its been very, very difficult. I think this is another reason why were fully valued right now, overbought, and the market is basically saying we got to see what companies have to say. Were moving in that direction. In terms of seasonality, were going from probably the best period in the markets to statistically, doesnt mean it always happens, but the worst period in the market. You have normal caution in the market. You just mean from stock perspective prices. Yeah, from a stock perspective. Again, its a normal caution. And the point here is if negative Interest Rates is the next frontier in Monetary Policy, thats telling you that this market needs to have the fundamentals. We have to move in that direction and have winners and losers in the market as we go through earnings season. Steven, i know you think stocks are fairly valued at these levels. We have come back pretty sharply. What happens if janet yellen has a hawkish message today . How does that change . Why are we so scared of 25 basis points . Arent we like a year overdue on this . But the market has had this massive reaction, in part because of the dollar sensitivity. I completely understand that, but were virtually still at zero. Lets move a little bit. Well be okay. There will be some bumps along the way. Thats fi thats fine. I understand the rest of the world is going the other direction with negative Interest Rates and 500year lows, which is dumb, and theyve got to get past it. But we can raise our rates a little bit and the economy is going to be just fine. The stock market might drop a couple points right off the bat, but it will show were nearing full employment. Usually thats very good news for the stock market. If the economy is Strong Enough to take all this in. It does come to that question of earnings. If the dollar strengthens again its never perfect. Its never going to be perfect. Its never, ever going to be like the magic day we can raise rates five points and get back to the norm. Lets move a little bit now. I know its not the perfect day for it, but lets move a little now, move a little more later this year. Its not going to happen because of all the fears and earnings season isnt perfect. I know the buybacks arent happening to the same extent, but theyve been doing that to an extreme for five years now. How long do you expect them to continue to do that . Those are all arguments for why the fed should have raised rates. They should have. At least a year ago. At least. I get why i did that night late summer, but they missed their window in the spring and summer, beginning of summer last year. Now were paying the pras a little bit for that. What would you tell Equity Investors in terms of u. S. Equities at this point . Would you tell them to go ahead and invest cautiously . This is the calm before the storm. Weve got the fed fight. Every fed person is giving a different story. They got to get their story straight. Then we have the political world with whats about to happen. We would have never assumed a year ago that we were going to have the extreme views that we have going out there and the complete unknowns. Lets be honest. No one knows whats going to come out of trumps mouth. You sound like youre telling people to wait and kind of ride some of this out before they invest. If it comes down to trump and sanders, im going to cash. Im being honest with you. Its going to be that extreme of volatility youll see in the markets. Its probably not going to happen though. In the meantime, im still investing. Im buying my pieces. Im buying energy every time it dips down below where it should be. Im a little worried about banks. I think theres a lot of banks out there that have been propping up some of these lower end Energy Companies that we could have some issues with. But technology, absolutely. Wonderful Technology Companies out there. Finding our pieces, getting across the board, short end of the yield curve. Absolutely. I want to thank you both for being here today. Thanks for having me. Some earnings to tell you about this morning. Just crossing the wire from home builder lennar, beating on the top and bottom lines. Earning 63 Cents Per Share for its latest quarter. Also a 10 increase in new orders. Also a 12 rise in deliveries when we come back, antiestablishment support has been a common theme. Were going to talk to a donald trump supporter and a Bernie Sanders supporter. Well talk about that next and whats driving voters away from the socalled party elite. Were back in a moment. Actions speak louder. Something well show you. Through small things. Big things. And spur of the moment things. Sheraton. Thank you. Ordering chinese food is a very predictable experience. I order b14. I get b14. No surprises. Buying business internet, on the other hand, can be a roller coaster White Knuckle thrill ride. Youre promised one speed. But do you consistently get it . You do with comcast business. Its reliable. Just like kung pao fish. Thank you, ping. Reliably fast internet starts at 59. 95 a month. Comcast business. 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