The dax is up. Its up by about a quarter percentage point. If you want to check out crude oil prices today, yesterday giving back some ground. Relatively flat right now. Down by about 4 cents for wti. Dropping slightly this morning as major producers down play the chances of an output these at this weekends meeting. Separately, the International EnergyAgency Cutting its estimates for Global Demand growth in 2016. And it is another busy day for Economic Data and earnings reports. Were going to have weekly jobless claim at 8 30 eastern time. Expect it to hold steady. Filings have been 300,000 for about 58 straight weeks now. Also at 8 30, were going to get the march Consumer Price index, headline cpi expected to tick up about 0. 2 following a decline in february. Now, atlanta fed president Dennis Lockhart is also speaking today. Were going to have to wait to see what hes got to say about all this. Also, for earnings, look for results from bank of america, blackrock, wells fargo, Delta Airlines, and pnc financial. All of that is coming up before the bell. In the meantime, fulltime leaders from around the world are in washington today for the Imf World BankSpring Meeting. Sara eisen caught up with treasury secretary jack lew and asked him about the recent crackdown on inversions. I said several years ago the right way, the best way to do it is for legislation to be passed that would do serious, comprehensive business fax reform and shut down inversions once and for all. Its a complicated matter. You dont have infinite flexibili flexibility. We have worked and worked on it. This is the third action weve taken. Each time weve slowed down the pipeline. Each time ive said Congress Needs to act because we want to make sure that inversions are stopped. I think that it should have been no surprise to anyone that we were working on this because weve been working on it for a long time. You can catch the entire exclusive interview with secretary jack lew later this morning on squawk on the street. The whole approach and the language used there, it was problematic for me. Instead of saying we want to, you know, comprehensive Corporate Tax reform to make assets want to stay here, he says, were only Corporate Tax reform to shut down inversions, as a permanent way to shut down inversions. Thats not the point. You dont want Foreign Companies being able to buy our companies on the cheap because they are able to make more money on it. In the process, inversions would stop because in a positive way, capital would want to stay in the United States, not just were going to prohibit you, were going to shut down you leaving, but were going to make you want to stay. Why cant you do it in a positive because they dont think that way in this administration. I would make a slightly different argument. The argument would be that theyve talked quite often actually about wanting to have comprehensive tax reform. Their version of Corporate Tax reform is different than the republicans version of Corporate Tax reform. I think theres a fundamental issue. If both sides are never going to come together and weve been talking about this for years and years and years. Theres a point made by the head of the ways and Means Committee yesterday. Took reform comes along once in a generation. We dont want to tweak around the edges. What wed like to do is make substantial changes. Wed like to see that idea pick up in washington. If you went back and designed a tax system from scratch it would not resemble this. What does it look like . Where is it mostly from the individual . Does it make sense to tax corporations . How should you tax corporations . If you can get the same amount of revenue or more and they can compete better globally, is there a different way . Is there a consumption tax that makes sense . Its only 10 of revenue. How do you replace that . In a Perfect World, you may go to zero. You might go to zero and do it in other ways. Yes, my son. I agree. But the spectrums with which people think about there are 27,000 people at a Bernie Sanders rally yesterday that think a Perfect World can be created where theres just trees and Fruit Growing everywhere. Their Perfect World is different than your Perfect World. Unlimited food and unlimited education and everybody has everything they want and everyone lives happily ever after and no one has to work. There are people that believe in the Perfect World now. Im just suggesting the various Perfect Worlds out there are so hard to get to. And combine into one reality. If oil is over 40, i think we shouldnt even mention it. A lot of times we look at oil and reference to the stock market. But theyve split. Oil can come down and stocks can still rally. How about an oil tax . Make sure oil is always 80. Standard. I think whenever people are doing well, there should be a windfall tax. Whenever theyre going bankrupt, we just let them go. When times are bad thats what we do right now. We do the windfall profit stocks. Do we like it better when the Oil Companies are like, you know, having problems and not being able to pay their debt and affecting Bank Balance Sheets in is that better, or do we like it better when theyre making big profits and paying big taxes . I guess if they paid big taxes, wed like it. Well, you made the argument to me, and i dont know the answer i dont know where you come out on this one, actually. If you believe oil is low, its somehow supposed to flow through to the rest of the world. Thats what we thought. What is the twoday gain in this dull market . Is it 350 points . It was 180something. Funny the way that works. Its close to 2 . There was a guest on who said the market is tired, no more gains. I tweeted out, im writing that down. It was a guest on squawk on the street. The guy liked the tweet and everything, but i said im going to remember it. It sounded like, you know what, youre probably going to be wrong. When you stick your neck out. Say the gains have been had in this market. Thats when its ready. Less than 100 points from 18,000 now. Right. In geopolitical news, this was frightening to watch. Everything is on video. Is there anything not on video . Madonna was the first person to say that. Theres nothing worth doing if its not on video. Two russian war planes flew simulated attacks that passed right near a u. S. Guided missile destroyer in the baltic this week. The American Ship tried to contact the russian aircraft on the radio, but they got no response. One u. S. Official said that they were the most aggressive interactions with the Russian Military in recent memory. The incident occurred in International Waters. I can just tell you that i monitor both conservative and liberal blogs and websites. The conservatives immediately used this as a sort of proxy for the way putin views president obama. Well, there was even some comments from the russians early this morning, saying, oh, what, they were bothered by this . It was some complete brush off of the concerns that were raised. If i were on the destroy and i saw that, i would be worried because youre a sitting duck. The United States point was there could be a misunderstanding in a situation like this. We may decide to take them out before they get that close. So its not a good idea. This is like a cold war you know, someones got a finger on a button somewhere. Its an international spark. In lighter sports news, the Golden State Warriors making history last night, beating the Memphis Grizzlies to smash the nba singleseason wins reported set by Michael Jordans chicago bulls. I saw some of this video. Everything he throws i mean, the video we show, theyre going to go in. Still amazing. Hes so far away. So far outside the threepoint line when hes hitting a lot of these. They just all go in. Anyway, thats 73 wins this season. Only nine losses. Steph curry leading his team and making history of his own. He drained his 400th three pointer of the regular season s first player ever to do that. I think its way above the last record. At the same time in the nba last night, its the end of an era in los angeles. Kobe bryant playing his final game in a laker uniform. He scored 60 points in a victory against the utah jazz. Whats funny the thing that had me cracking up all night long is the fact i go through 20 years of everybody screaming to pass the ball. On the last night, theyre like, dont pass it. This has been absolutely beautiful, you guys. I cant believe this comes to an end. You guys will always be in my heart. I sincerely, sincerely appreciate it. No words can describe how i feel about you guys. Thank you, thank you from the bottom of my heart. God, i love you guys. Third leading scorer in nba history. I mean, obviously going out when he doesnt have to go out. Hes got it. Over the top. Hes 37. I thought he was maybe 40. Its a grind. It is. But as you said, hes still got it. I think he could get hired by a couple nba teams probably. It was amazing. Its great. And we say we look up to them and everything. I think kobe made like 400 million over his career. I dont know if that includes endorsements. Maybe it does. Michael jordan is worth a billion dollars. More. The Golden State Warriors broke the bulls record from 95, 96. I saw that. By the way d you read the Time Magazine interview with tiger woods . I wont. You wont read . It wasnt time. Oh, an interview with him. Because he was on sports illustrated. Theres an amazing interview with him. The whole Jordan Spieth thing, im still sort of i feel scarred a little bit. I know he still feels it. Masters titles are not easy to come by. In the meantime, lets talk about Something Else right now. U. S. Regulators proposing a twoyear ban for theranos founder Elizabeth Holmes from operating blood testing labs. Just the latest in this absolutely crazy story. This stems from yet another peace of great reporting from the wall street journal. He uncovered a letter that the certains for medicare and Medicaid Services sent to theranos, saying they could impose these sanctions on theranos if they dont correct these measures. Heres some of the letter from cms that the wall street journal obtained. This all stems from an audit of their california laboratory. So this has been the ongoing audit weve been hearing about for a while now. Essentially theranos had ten days to respond or cms said it would impose these sanctions. I spoke with theranos yesterday. They confirmed they had received this letter. They had responded within the ten days. They really want to emphasize as of now, no sanctions are in place. They say this is all hypothetical. So how would this ban be imposed . It could all stem from a potential revocation of that california lab. If your revocation happens, that means that the owners or operators of that lab get a ban for two years from owning or operating any labs. Of course, that would then spread over to the arizona laboratory this theranos says does 90 of its business. This would kind of stretch across their business. How often does Something Like this happen . I mean, is this a really unusual circumstance to have the threat of sanctions like this put out, o is this more common place . People are telling me it is pretty rare. I was looking on cmss website. They do have several labs listed there with sanctions. It seems like a lab as big as this, as wellfunded as this, this is surprising to people. People im talking with in the industry are just kind of rolling their eyes at this point. Theyre just saying, how can we trust this . How much cash do they have . How long its a private company. We dont have that information. Do we have any idea how long this soap opera can go on for . In a normal world, they would effectively go out of business. I talked with them about Investor Base. They dont have to give us details. They said their original Investor Base hasnt changed at all. Weve been trying to find out if people are trying to get out and sell on the secondary market. They say nothing has changed. As for how long they can keep operating, they say they have addressed these things and theyre hopeful the sanctions wont be put in place. They say they do things other than just testing. They have r d capabilitiecapabi. I dont know about the funding situation. Thats the key question there. The other thing is theyre offering these tests at such low prices. Are they losing money on these tests . Theres a lot of questions about their cash burn. Okay. Meg, thank you. Thanks, guys. A couple other Market Metrics to tell you about this morning. First of all, check out the f h treasury market. You saw the tenyear sitting at its highest yield in just about two weeks. This morning the yield has pulled back slightly. Still sitting at 1. 774 . In the morning we check these things out on the way in. Have you looked at the german ten year . No, where is it . The ten year is 14 basis points. It just looks so weird. I looked at it twice. That explains our treasury. Theres the bu nd. Almost 15 basis points. Almost 15. You give them your money, youll get it back in ten years. You can buy like a soft drink. What would you buy that wont eat your insides out . You could buy some type of no red bull. Thats caffeine. Is there anything you can drink . Water. You know what you can buy . Metamucil. Have you tried that . No. Our producer recommended it. Its like tang. Blue it does a bunch of really good things. It monitors your sugar level. It keeps things in order, running smoothly. Thats the drink. Keeps the trains on time, so to speak. Its pc. Gross but pc. Well give you that. Its really not gross. Its like tang. No, what it does is a little gross. Look, you know that everybody i mean, theres the childrens book. I do. All right. Lets take a look at whats been happening in the Foreign Exchange market. If you check out the dollar, the dollar is actually the dollar index was at its highest level yesterday in about a week. You can see the dollar is up against the euro once again today. 1. 1259. Dollar is down against the yen. Gold was down about 1 yesterday. That ended a fourday winning streak. One more check on the futures this morning. After two big days of gains with the market sitting at their highest closes of the year, you can see right now futures are relatively flat. Dow is down by less than ten points. S p futures down by about two points. The north america dasdaq off by. Here on set, we have Steve Friedman from ubs wealth management. Lets start things out, jeff, with you, and just talk about with marks sitting at their highs what you think happens next. I think the rally is a little extended here. I think in the longer term, we go higher, but were 43 sessions into this buying stampede. Its pretty rare to get a buying stampede to go more than 30 sessions. So were overbought on a shortterm basis. I think any kind of pullback is going to be small. I think we make new highs in the months ahead. So youre a little nervous just about how long the streak is, but you dont think the gains are over for the longer haul. I do not. I think stocks are in the sweet spot right here. I think gdp growth is going to reassert itself in the back half of this year. I think earnings, the revised lower estimates, i think earnings for this quarter are going to come in higher than most people expect. I think people remain underinvested. Steve, one of the things weve seen is Commodity Prices have certainly rebounded. Concerns about deflation are not nearly as rampant as they had been. What does that mean . Do you agree with jeff at this point . Do you think that the rally could be around for a little longer . I think if to you take the long view, theres still upside. I would be a bit concerned in the near term because i think some of the drivers that have been positive, the movement in the dollar and energy prices, some of those may be overextended. As they reverse somewhat, i think they could face some pressures. Earnings season, its going to be challenging. Clearly expectations have come down a lot. I was going to say, jeff mentioned it has been the bar has been lowered. On the macro side, i think youve had some good data out of china, the u. S. I think its something wed have to be patient about. You have to wait for these positive macro and fundamental drivers to unfold. If youve been waiting, youve missed this run over the last month or so. Thats true. Generally speaking, were telling people to be slightly overweight stocks in the u. S. And europe. Were not expecting to just extrapolate the more recent gains. Jeff, where do you think stocksi inin incould run for th . Any yearend targets snmpkts i really dont do that. My father told me if youre directionally correct, youre ahead of the crowd. I think stocks will be higher at year end than they are now, and i think the economy will be stronger at year end than it is now. Okay. Jeff, steve, thank you both for coming in today. You bet. Coming up, prescription spending in the u. S. Is expected to skyrocket over the next five years. Details from a new study next. Plus, if youve ever been frustrated by long lines at Airport Security, youre still flying commercial. No. Youre not alone. I did that for you, andrew. Thanks. One airline ca