45. 88 for wti. So still talk about the possibility whether or not it is going to 50. Brent is 47. 53. Natural gas is 208. Janet yellen wont completely rule out negative rates but the fed chair also saying that the tool would need a lot more study before it could be used in the United States. Our comments coming in response to written questions from a congressman following her testimony on capitol hill. And Jeffrey Gundlach telling an investor web cast he sees some hawkish rebellion showing up. He calls yellen the biggest dove. 50 chance of only one more rate hike this year. He can see the s p going to 1600. On todays economic agenda couple of things coming up. April retail sales and the producer pricing index both out. Sales expected to rebound after a decline in march. Then were going to get may Consumer Sentiment and march business innervate ris. Retailers have had some problems this week. I heard. You missed a lot here. Did you see some of the people we had on this week . I heard. Your buddy Sidney Blumenthal was on. I heard i heard he described me as his little friend. Like almost a little marco. I did one liberal. Viewers so kind. They tweet me. I heard. [ inaudible ]. Big week. Guy that jamie called. A jerk. Right. Is jerk a word . Its half of a word isnt it . I said rim job radar when they did that. [ drum roll ] and he turns red. I dont turn red. Announcer this awkward momentum has been brought to you by joe kernen. We used puts earlier which is is also something that can a is meaning right. Its not nice to say that. Its an anatomical yiddish term. I didnt know that. You didnt know that. I just knew that it was a derogatory term. Everybody here knows. Everybody else knows here. You want to talk retailers. You want to get out of this . Youre back and its like i cant believe this. What time it . Also this can anybody use yiddish . Why i dont know. Im just curious. There are certain things i think youre allowed to call someone a schmuck or a puts or Something Like that. A mensch . I dont know. Im just throwing it out there. Youre saying maybe i shouldnt use because im im not saying that. Im just throwing it out there. I dont know what the rules are. Real quick. Seinfeld, they have done everything on seinfeld. Remember the jewish dentist converted to judaism and then all he did was tell jewish jokes. And and this is not the same thing as calling someone a schmuck. It might be. Are you shares of nordstrom getting slammed this morning. It is the latest retailer. Im not gonna ever use its your stuff fine. You use it. Im saying de blasio got in trouble for his stuff totally different. Mean about that being late that thing . Im just saying oh i god i wouldnt bring that up. Im just making the observation that people have different sensitivities. Pc. I dont know. To be very worried about the rules. I dont squawk box not to be a safe place. This is the safest of places. Microaggression on you today. Im sorry. Never again. Schmuck, no none of that. It is the latest retailer. Post a huge miss on both the top and bottom lines. The higher End Department store also warning on sales. And at the same time holy smokes. 17 in pre market. We got to look at if we go a little long was that that might be this week michelle. No i think that 17 is right now. The right. How about a year. Probably the high brutal. 51 down. And look at that leg, wow. Retail at dillard also reporting First Quarter earnings and profits that missed forecast and expectations. Same store sales also slipped. That stock is also under pressure this morning. There you go again down 14 . Said that in the top of the show. Lot of these stocks down 15, 20 in a week. Whether its avmz or something bigger. Little bit of both i think. Markets down today and i wonder if they are starting to wonder other day disney was down. Comcasts is above where it was when disease said that. So maybe it helps to have all those cable operations and the distribution side. But that day, disease was down. You could equate the losses in the dow pre market. And the dow didnt change but by tend of the day it was down over 200 points. The futures board. Wonder if as we see them down across the board for negative open is this spill through from concern about the Retail Sector . Joining us is seth masters. And joe zeedle. Please answer my question. Europe down too. Any concerns here . If you step back the retail story shouldnt be much of a surprise. Weve seen these retailers with very little pricing power. What were seeing is the real retail sales growth is being eclipsed by nominal retail sales growth. Ski think data a couple of months ago is first time weve seen that and plain english it means the number of units sold is growing faster than the number of units plus price. So it is deflationary. Yeah. Makes this point all the time the cost of things being bought is going down so sharply. Imports from china, etc. Feels like lately its been dramatic. Is this amazon sucking up market share because the consumer has dramatically shifted its style of buying . I think a lot of things coming together. As we see it we are in a relatively slow Economic Growth environment with very low inflation and that dun help. On top of that there are some structural changes in demand. So you are seeing people buying more online. The distribution of income is shifting more to the tails. We think some of the Dollar Stores are actually attractive now because they are growing relatively even as the retailers in the middle of the pack are slipping. And also people are buying different kind of things. Experiences more than objects. All of that is a shift. I think the key thing were seeing is a lot of volatility swings up and down in the market overall and huge rotations within the market and that is going to continue. And what does that mean . And why is it going to continue . I think the reason you are going to see that is lots of structural longterm issues are lurking out there. Central banks are trying to fight them but as the Central Banks are pulling back their stimulus, that means that the underlying problems are becoming more visible and that is an issue of course in market in that case . No quite the opposite. I think you have to pick your timing. Markets when they swing up and down a lot around a low return will have attractive entree points but the challenge is do it when the market is falling and actually become less aggressive when they are back up. Very erudite way to say buy low sell high. Right. Were bullish on the market. And the markets are highly cyclical. Energy, financial, materials. These more cyclical sectors and small caps we think drive the market higher and the reason is earnings. That is something we havent b been talking about the s p basically wrapped up its season. And were seeing this trough and earnings recovery. And stipically when earnings start to recover the most cyclicly sensitive stocks benefit the most. Small cap, energy, financials etc. They are going the best when earnings start to reflat and looking at whats performed or out performed since february its been those sectors were kind of following that playbook. We got a big Tech Corporate news story. Apple investing a billion dollars in the chinese Ride Sharing Service. Didi chuxing. The deal comes amid months of speculation ann about apples Auto Industry interest. The company has hired automotive experts and although the firm is just looking to focus on the incar experience some wonder if apple is looking to build self driving cars. Didi has like 99 market share in china totally overtaking uber. Puts uber in a box. I think it is that is on taxi sharing and private car driving they own a huge part of the market. The question is whether apple can actually be in the chinese market. Whether this binds them in a better way. Or by the way whether it creates all sorts of not antitrust issues in china but whether i could see uber start screaming in the United States and other regulators that somehow apple is going to be trying to help these other guys. When you look at these investors chinas investment corporation. A lot of Chinese Companies to me there could be a political whiff to this. To be alongside line them with the Chinese Government in china. Great for them. I think its great. What is the intention . Is the intention political or combination of both. I think it is a great move. The question i have though is whether uber is going when something bad happens to uber in europe or the United States they are going to somehow say that if didi does business elsewhere, meaning if they start doing business here, then dont you think that uber is going to say this platform is unfair and apple is well find out. Talk about apple. I was going to say hasta la vista to a trillion dollar market cap. But im not sure. Can i use spanish . I was going to seika say qe sar sara. Andrew, what am i. Get me a taco bowl. What am i allowed to . Get that joke . Yes i do. Next time you hear something really good happen in your life do not expect to hear mosul tov. I would not want to steal any of your proprietary phrases. The carnage in apple continues. I hope there is nothing in here. There is a lot of these foreign expressions. Shares of the quid pro quo. Shares of iphone down nearly 20 . Joining us to talk about whats ahead, robert baird analyst will power. Not even gonna talk about that. I love it. I think your parents are cool. No way i would ever change it. Now lets talk about whats you are our all time high priced target on apple was and how embarrassed you feel at this point. In this business long enough there is also some humble buy. Good calls on apple and some probably not quite as good. [inaudible]. This is the political season right . Texas two step. Im based down in dallas. Were you ever at 200 . I was never at 200. I this i weve gotten close to 150. Only as high as 150. We were in that range i believe. Between 180, 150. All right. Weve been over this enough. Everybody got caught up in it. Including the dow jones industrials. Id never been on the show a year ago. This is the top. If you get added to the dow it is only the downside. It was sage advice. That was the final thing that spelled doom but just the idea that at 750 billion everybody had a double on the stock and that would have been 1. 5 trillion and weve seen this again and again and again in technology and it just seemed like that would be some heavy lifting. And then you do 50 billion a quarter or whatever it is in revenue. Like that is your birthright for the rest of your corporate life, you are always going to be able to sell that much . That is not easy to do. They are still living under the shadow of the success of the iphone 6. Victim of their own success. At least six months ago said who gets to a trillion first. And she said straightforward google gets to a trillion long before apple and here we are google get there is before amazon too . To pick one. I dont know if we amazon was probably 250 salesmen. Its 380 or something now. Even before she was on. It vaulted into something where you would talked about that. Yesterday we had Walter Isaacson on also earlier this week. Steve jobs is special. Is that starting to become apparent . Scott wapner said you dont need to replace dimaggio with Mickey Mantle but it would be good to have a solid. 300 hitter. I think hoe is. Tim cook. Hes navigated the waters. Has he been good baseball analogies okay . Did you play baseball . I dont know. Fossils results earlier this week which of course i dont cover but look at an industry that apples already disrupted and despite the fact they actually a very good product but at the end of the day doesnt move the needle for them. But that stock is priced for the needed something other than different size and absolutely. Look sony has a product out there. The sony view which i thought apple would have. Does it go below 80 . Well the go 90 product does the price of apple go below 80 . See the clients are listening. Listening we dont think it goes below 80. If we thought it would you have never downgraded. We have at one point. We think consensus estimates are still too high. Question is how much of is that already in the stock. Fiscal 2017. Street has them up mid single digits. We downgraded the stock actually in beginning of 2013 and it was already on its rear then. With apple you are either trading it or taking a true longer term view. This deal, the billion dollar investment. A little out of character for apple to go out and make an investment. Talk about this back staining with your previous guest. They have all this cash overseas so this actually for them is a way to deploy cash and inject themselves further into that chinese eco system. Political deal or something larger strategically. I think probably partically political. Didi out of china and elsewhere . I couldnt even speculate on that. I suspect it is focused more on the chinese market. We call like dan ernst and brian white and other analysts its auto body, this is ed. They see cnbc calling and so thin too. Probably workout every day. Probably dont eat too much. One question about your number though. Does that anticipate any kind of breakthrough happening or doesnt even matter. You still have this tough growth compare. And so were not assuming new products so if the iphone 7 comes one big positive surprise. Im talking about something wide wild. No were not assuming a new product. Lauf hyper loop. We want hyper loop. Thank you for having me. Great to be here. A monorail. Every city. Every city needs a monorail. Paid for with taxpayer money right . Yes. That nobody rides on. Coming up shares of bank of america falling more than 17 this year. Brian moynihan explosion to wilfred frost about the banks perfornce and were going to show what he had to say next. charge music you wouldnt hire an organist without hearing them first. Charge so why would you invest without checking brokercheck . Check your broker with brokercheck. By switching to xfinity x1. Rio Olympic Games show me gymnastics. X1 lets you search by sport, watch nbcs highlights and catch every live event on your tv with nbc sports live extra. Im getting ready. Are you . X1 will change the way you experience nbcuniversals coverage of the rio Olympic Games. Call or go online today to switch to x1. Wilfred frost joins us now. Hello again. Yes i sat down with Brian Moynihan and we know from q1 earnings that march saw an improvement from january and february. I asked whether that improvement had continued through april and may as well. If you think about it from markets activity, trading activity what these guys out there are doing it is strong as march and continue to improve. If you think about from Investment Banking some deals arent getting done and it is coming along but takes longer to restart. Asset quality was also important in the First Quarter. I asked whether that had spread from q1 to two and whether it had spread from the Energy Sector into others. Weve seen the activity in our commercial portfolios is still strong. From a credit quality is still strong and oil and gas frankly is mitigated because of the obvious issue of prices have changed. And you are working through things. Quite a calling in our company is very strong. And continues to remain so. So quite a resounding response. Certainly on asset quality saying they see nothing in terms of the issues they saw earlier. Despite that bank of america shares still down year to date 14 . The next is see car in june. And for more on that and polit ticks and environment is full interview is available on cnbc pro. Late for you because it. Late for me made it on the second hour of closing bell. Thats 4 00 in the afternoon. When you get up at 2 00 a. M. It feels like. 7 00 or 8 30 in london. Have you switched to this time zone yet havent really because you are still on london time. Still on london time. Although this weekend im going back to the uk. I know you are. Let me know if the woolsly for you. Thats very kind. My favorite restaurant. Im not going into the london. Im be in the countryside this weekend. Ooh. Sorry. Yeah, exactly. Youre so cool. He is. I wonder if Brian Moynihan knew who he was. What do you mean who i am . Im a cnbc reporter that is what he knows. Could be the same thing someday. [inaudible]. Broadway play about it. I dont know if i would get nominated. Thank you my friend. All right were going talk. The donald says amazon has a huge antitrust problem. I this i it has something to got the Washington Post approximate or something. Hes upset about the Washington Post is one piece of it. So i saw the lead story in the journal the health law and other setbacks so i read that. And i then i went to the Washington Post front page. House gop but i wanted the analysis from the leading newspaper. The thought leading number. The New York Times. So ive gone into it. And im on page a1, nothing. 2, 3, nothing. 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