Transcripts For CNBC Closing Bell 20180215

Uptick utilities is the Top Performing sector, i guess we could say it had a pullback. It did hit a nine year high today. Tech strong, Consumer Staples are strong lets begin with dominic chu wh is following the stock market. The stock market might be a little bit ways away from getting back to the highs before the selloff, we looked at the s p 500, it turns out that 93 members of the s p are 5 away from claiming those 52 week highs or better that theyve seen 81 stocks have hit highs so far in 2018 alone. And a handful, 13 of them, has hit 52 or better just this week. Some of the stocks that are a doing better job of getting back towards those record high levels, check out vf corporation, a big apparel company. Its within. 5 of record high levels northrup grumennond cne group also within 1 nike, close. A bunch of big names are doing a decent job at getting back after the losses weve seen. The big question on the minds of investors is if the rebound is wahappening too fast. Who would have thought a week ago today we would have thought we would be rebounding too fast. When the market gets rattled, everyone becomes a technician, it starts to be about the rules of the game in terms of how you play it. Do we need to see a retest, do we get v shaped bottoms which are rare but not unprecedented thats the question right now. If you look at the chart of the s p 500 futures from last week, you could argue that it looks more like a contorted w than a v. The overnight low into tuesdays training and then to friday afternoon, however the sharper the pullback, typically the quicker the recovery we had the sharpest double digit loss from an all time high in 80 years. Maybe that means we have momentum the panic over yields and volatility selling it burnt itself quickly we maybe pressured the market more than otherwise we would have had to in a routine fundamental pullback i will say, were now at a level its not make or break, but its definitely getting real here the s p 500 up to 2720ish everyone said after that maybe its more like a v its not if we cant surpass that level, its the 50 day average. Its last weeks wednesdays high thats where you have to see if this question becomes more intense. I can think of two famous v bottoms, one on the 87 on the second day and march of 09. Right ive looked at the chart from october 97 which was one of those bull market panics thatan that looks similar to what were going through now. This has been the experienc in the rally every time we hit a pothole or correction weve come running back stocks are on pace to close positive on the fifth day on a row. Joining us now is our guests to talk a little bit more about this. Are you breathing a sigh of relief absolutely. Its been a stressful ten days this feels a lot better. At the same time, it has been a good trading environment theres plenty of individual investors who are happy to see us tick higher a quarter percentage point every day like last year. This is a better environment for trading, right it is what i find fascinating, this pullback came in the middle of the first quarter. People got another chance to buy. The recovery were seeing is that group saying, we still have a chance to get in lets make our quarter into the back half of the quarter. I think you agree this may be too soon too fast . Im of that belief. We didnt test it enough we need to actually go back and test that 200 day. Because the speed at which we broke through every one of those levels, 50, 100, and then we actually did break the 200 and then it just rocketed from there. My sense is its not done yet. It needs to do it again to confirm that the buyers are really there it doesnt ill be the first one to say, it doesnt look like were going to have that happen. The dow is up 275 right now. Not today now theyre talking about, until we get to 4 the market is going to be great. Im scratching my head Interest Rates. Yeah. We were so nervous on 3 ive heard people talk 5 . Now its 4 where did that come from what has changed. The questioned we asked, is it because we got that wage rating, is it because the tenure smis moving higher . Was it because of volatility products that blew up . Theyre fed up with higher rates. The thing that pushed it over the cliff was the volatility trade. Rates have stopped going up. That seems to be giving the all clear to stocks. Were seeing the return of rotation in this market. Yesterday it was financials, today its of all things utilities and retail. Its true utilities you have to think thats just a kind of a breather after the yield stock going up a little bit thats absolutely true bill, on the other hand youre seeing the leadership from before kind of reassert itself, right . Who thought that nasdaq would race back up. Everybody says i love tech. Coming into the year everyone said value stocks, higher rate environment. No, they want the stuff thats dominant and worked last year. I do think that muscle memory is strong but youre right, the last couple of days its felt like last year. Whats warren buffets Largest Holding now . Exactly. The nasdaq and the dow. And many edge funds, and tech, and apple. Its hard to get into an environment where somebody says 30 topline growth, no, thanks i dont want that right now. We have to go here in a second it starts around 1 00 eastern time in the afternoon lately, especially this last five day rally weve seen here. Thats when the afterburner kicks in. And it feels like look, we just went through 2721, which represented resistance now weve busted through that at 2727 you can almost feel the momentum piling on. Its going to be the push to the end of the day. You mentioned maybe part of the reason why we are in better shape is because Interest Rates are going up does that mean if we get another Inflation Report or another piece of data that pushes it over 3 that we go to back to that volatile environment . Sure. This market is going to be a dialogue between the Earnings Group and the rates going up, which is not so healthy for stocks and the worry that that cascades into something more dangerous. I know i keep hammering this, but its not been a problem for stocks lately. And recent rallies and expansions, rates have gone higher while the stock market has been going higher. While these cycles seem to be gathering momentum i understand why it should be a problem, but maybe it doesnt have to be. There was a great fed paper last year that talked about Interest Rates not just being a point estimate, but theres a range around them. That range narrowed considerably over the last year where people said were sure where its going to go. It feeds volatility because of the incertainty. One other piece of that, previously in this cycle when rates were going up, it meant we were getting further away from deflationary fears rates go up here, its inflation. Weve changed what were afraid of. Even if we go back to 2005 2006, the same time you had rates moving up, and you had the curve flattening, everybody talked about how higher rates are going to be a problem for the Housing Market that didnt happen last night. So far this is playing out like that. My doctor talks about good and bad cholesterol. I think theres good inflation and bad inflation. Right now its good because we would call that pricing power, wouldnt we . People are not afraid of higher prices yet. Thats right. Well get there at some point. We already have 18 Earnings Growth expected for q1 if you start to get pricing, some of that flows through the bottom line and sporupport long term rates. You have the higher price of the iphone, its faster, its there. Some of the moves that have come out on tariffs, that can increase prices. The infrastructure plan. Thats also putting money into the economy. It feels like this is going to be an obsession for a while. Its not clear whether that means an inflation is going back up. This is going to be a story the rest of the year and it will create more volatility its not typically a month we see the high for the year. I know you want to see more of a retail its the Late Afternoon and we hear thats the smart money coming in. Again, it feels like it is today. At least it feels like you know, a lot of the big institutions have been working all day. As they get to the end of the day, they need to get them done so they get more aggressive if they need to it feels like its going to happen today, right . Sure does. The vix is holding a bit, ill point that out today. Its not declining with the s p. The s p is at the high right now. Thats what im saying. Right, volatility is near 20 before all this happened yellow flag yellow flag how much can we rely on these readings now i think for the moment theyre colored by the volatility market. One reason for the afternoon rips is the market straightens up by 1 00 everyone figures out whats going to be there at 3 00. Its the noon balloon ability. Thar were just Getting Started we have 48 minutes left in the trading session. Were in the mild of another rally today. Up about 232 points on the dow. Theres a lot more ahead still on the closing bell. Next on the closing bell, the surprising sectors some big named hedge funds are piling into wait until you see some of the names theyve been shopping for. Plus, boeings ceo, on the state of his stocks huge run. And why the Home Builders just got so bullish on themselves the closing bell is back in two minutes. Stay with me, mr. Parker. When a critical patient is far from the hospital, the hospital must come to the patient. Stay with me, mr. Parker. The at t network is helping First Responders connect with medical teams in near real time. Stay with me, mr. Parker. Saving time when it matters most. Stay with me, mrs. Parker. Thats the power of and. Today, the new new york is sparking innovation. You see it in the Southern Tier with companies that are developing powerful batteries that make everything from cell phones to rail cars more efficient. Which helps improve every aspect of advanced rail technology. All with support from a highlyeducated workforce and vocational job training. Across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. Facebook reported adjusted accuracy first. Close second, fifth day in a row of gains for wall street. And were near the highs of the session right now, matter of fact the dow up 258 points. 1 gain and once again nasdaq is the better performer of the major averages as technology continues. Cisco, leading the way after that stellar Earnings Report last night nasdaq up 1. 4 n net app is the worst performer today, despite better than expected earnings. Investors are disappointed the Data Storage Company gave guidance that was roughly in line with wall street estimates. Thats a nono apparently. Not good enough in this environment. They are down 7 retail has been on a roll this year now big named Hedge Fund Managers have been buying into the industry. Thats right. Perhaps its a bullish sign for retail perhaps a signal of the sectors worst days are behind it it could mean that retail is one of the few places that investors see opportunity. Whatever the reason, hedge funds and other investors pump billions of dollars into retail names. Those moves happened during a year that saw about two dozen major retailers file for bankruptcy names include, autozone and foot looker each of those saw inflows worth 5 of their market caps during the quarter. One of the biggest bets in retail came from Green Light Capital david einhorn. The stakes were small and didnt appear to help the performance green light was down 6. 6 in january. The Pershing Square disclosed how many shares of nike it owns. Remember, this is a passive stakes, so dont expect a proxy fight there anytime soon i should also note these holdings are based on what was in their portfolios as of the end of december and they have changed in the six weeks since. We were talking about that during the commercial break. We need to make that clear, that this is history. It is. We dont know what theyre holding right now. We dont go what they did after the retailers and others fell out of bed in the early part of the february here. It does not account for those weeks that we saw the market take a tumble. Its an indicator that at least some of these holdings, its likely they held onto during that period. Its unclear exactly which one. Leslie, thank you leslie picker there. Is this the all clear . Time to buy sign for Retail Stocks right now lets ask eddie roomba. Welcome. Its funny to ask you both because you cover retail i feel like the answer is going to be yes. What do you think is the significance of some of these hedge funds getting involved now, the evaluativaluations get low. You should buy some retail. Because retail is still going to be very tough for some people in 2018 these retailers that are maximum taxpayers are getting a big break. They can use that the drive the business, pass it back to the consumer, improve customer service. Were going to see a lot of the ones that list ive been recommending theyre maximum taxpayers, theyre going to get Something Back here. I think thats part of whats going on the rest of whats going on is people are looking at the way the markets trading and saying hey, its a good time to be in more cyclical looking stock and were there. Yeah, i think this is a good sign to say yes, buy the ones you want to own. Ed, you know, the thing for retailers began after black friday we were getting signs right away that sales were really good and the Retail Stocks took off from there. And had a very strong finish for the end of the Fourth Quarter. Part of it is that the retailers were very disciplined in what they bought for holidays they were clearly wellpositioned and probably most importantly didnt need to hit that promotional lever quite as hard as the year prior. You take that lower promotion plus a consumer who seems to be discretionary items and its given rise to the idea that maybe all of retail isnt dead i wondered, if this is a moment, like bill said go back to black friday, the traffic numbers were better. The overall Sales Numbers were better for the retailers, theyre facing a lot of wage hikes that theyre doing, as you mentioned with the tax savings or just because they have to in this environment is this going to be a good era of Profit Margins for them its going to be a really good year from the point of view of the consumer. The consumer is going to have more money the consumer is working. More working than ever, right . Its a great time from the consumers point of view and theyre not heavily levered up on their Balance Sheets so they can buy stuff. Who are they going to buy it from, when are they going to buy it and what price theyre going to pay is a big question well see more bankruptcies in 2018 and 2017. Well see more store closings in 2018 than 2017 but we will see some retailers do really, really well walmart. I didnt mention them a while ago, is going to be a good example. I saw your letters on your investments on underarmour, i said not one im recommending. Its not like every retailer is going to do great. Ed, you know, last year was very much a year in retail of haves versus have nots there were kacompanies that wer kwlo closing left and right and some were flourishing. We like underarmour, they have a lot of internal cataly catalysts. Theyre getting back to their performance which is what gave the business their strong growth we like tiffany and walmart. Jan has shares of underarmour hed like to share with you. I dont own any of these companies. After the the underarmour report this year, theyve done very well. They convinced some people theyre coming back. They havent convinced me they have convinced ed there is two sides to every story here. I would argue go ahead. Look, i would argue that the brand is very, very strong i think one thing that we saw work in stocks last year are companies that can tighten operations, be more focused. We saw that with coach tapestry. Thats whats going to play again with underarmour. Im focused on strong brands. I like nike, tapestry, michael kors, yes, i like brands i think thats where the consumer is going. All right gentlemen, thank you always good to see you ill let you get back to shopping which you were doing recently i hear were going to continue here as the market continues to move higher the dow up 264 points right now. I think that is about the high for the session right now with about 38 minutes left in the trading session. Boeing and cisco, as weve mentioned has been big performers so far this year. When we come back well hear from both ceos. Warren buffets is doubling down on his investment in apple. Should you follow his lead well weigh in, still to come on closing bell where can investors seek predictable income in an uncertain world . Pgim sees alpha in real assets. Like agriculture to feed the world. And energy to fuel its growth. Real estate such as ecommerce warehouses. And private debt to finance transportation and infrastructure. Building blocks of strategies to pursue consistent returns over time from over one hundred fifty billion dollars in real assets. Partner with pgim. The Global Investment management businesses of prudential. But prevagen helps your brain with an ingredient originally discovered. In jellyfish. In clinical trials, prevagen has been shown to improve shortterm memory. Prevagen. The name to remember. And the nx hybrid with a class beating 31 mpg combined estimate. Lease the 2018 nx 300 for 339 a month for 36 months. Experience amazing at your lexus dealer. Welcome back, 35 minutes to go dow is up 273. S p is up 30 we mentioned the nasdaq is the strongest performer. 1. 5 right now. How would you like to be an energy today the only one thats down. Even though oil is higher today. Here are the sectors of s p 500, energy is down. 5 . Technology leading the way now its edged out utilities at least that makes more sense if you ignored the rest of it. Tech leading the utilities are ahead. Give utilities the silver yeah. See what i did there . Boeing, by the way, the best performing dow stock last year and so far it has continued that trend this year. Earlier on squad on the street, the ceo explained whats behind his stock surge. I think what youre seeing is the market is responding to what is fundamentally a very strong airplane market. Aerospace market globally. The fact that were delivering on our commitments we had promised production ramp up, were now delivering on that ramp up. You can see the profitability thats hitting the bottom line as well. Its efficiency in our supply chain. This has changed from being a high cycled business in the past to a long turned sustained growth business. Thats changed the attitude and the perspective on the street. You first. I was going to say that better be right. Yes. Because weve seen this in the past where people go this is a permanently high growth pla plate plateau. Boeing has a long trajectory of growth ahead of it. Theres a change in the tone of the competition i mean theres always been a competition between boeing and airbus, we know that i think that competition has been ramped up and theyre much more aggressive than they used to be in going after contracts. Look whats going on with bomba bombardier in canada. Cargo has been so strong, its Even Stronger than passenger traffic. We see this as a real sign of economic growth, a real lead indicator. So there is something everyone else can hang their hat on. Airlines also replenishing. You know, those big jet deals, thats going to help thats cyclical. We know that at least in the past. Yeah. Again, boeing, one of the better performers again this year cisco shares are hitting an 18 year high. They broeke a two year streak o sales decline. This morning, ceo chuck robins credited the transition to more software and higher reoccurring revenue. Ten quarters ago 6 of our revenue was from recurring offers and this year it was at 14 . W were pleased with what we did happy with the execution, the team delivered did you hear what we said about boeing you can say the same thing about cisco, was there a more cyclical industry than the semi conductors it was a very predictable cycle that you would have throughout the calendar year. What he seems to be suggest ing with the rise in the recuring revenue from 6 to 14 , say thim. Its funny to see the stock chart. This is one of the original companies. We talked about how big can the market cap get its quite a ways back having followi theyre clearly being rewarded for the market heck, theyre showing organic growth, up 5 today. With about 30 minutes left here, ill show you whats happening on wall street if youre just joining us here, rally mode, especially this afternoon. We saw a selloff again this morning. We were actually negative for a time on the dow. But then a v bottom and weve come back in a big way here. The dow up 253 points. 1 gain pretty much across the board, especially for the nas q nasdaq time for a cnbc news update. Heres whats happening at this hour. The suspected School Shooter has been been arraigned. Speaking on the senate floor, florida senator marco rubio says lawmakers have an obligation to find a way to prevent devastating shootings. He says gun reform bills may not have prevented the attack, but its an issue that has to be tackled. Just because these proposals would not have prevented this does not mean that we raise our hands and say theres nothing we can do its a tough issue because its part of the reason why its so hard to prevent these. Community leaders are coming together for a vigil following that shooting. Several religious community and state leaders spoke to the crowd at Park Ridge Church in coral springs. They released 17 balloons into the air to remember the 17 victims. Youre up to date, well be back in a moment oh, and theres the closing bell. sighs i hate missing out missing out after hours. Not anymore, Td Ameritrade lets you trade select securities 24 hours a day, five days a week. Thats amazing. Its a pretty big deal. So i can trade all night long . All night long. Is that Lionel Richie . Lets reopen the market. Mr. Richie, would you ring the 24 5 bell . Sure can, jim. Trade 24 5, only with Td Ameritrade. I thyou never got the brakes looked at . L. Oh yeah. No. At cognizant, were helping todays leading manufacturers make things that think and do automatically. Imagine that, a world of new Digital Products and services all working together for you. Can i borrow the car when its back . Get ready, because were helping leading companies see it and see it throughwith digital. So what else is new . Humm. Shes doing good. She needs more care though. She wants to stay in her house. I dont know even where to start with that. First, lets take a look at your Financial Plan and see what we can do. Ok, so weve got. Well listen. Well talk. Well plan. Baird. Welcome back, weve got news on corporate buybacks. Thats right, so Record Number of corporate buybacks a month and a half into the year 170. 8 billion thats how much in buybacks that companies have announced so far thats the most weve seen this far into a calendar year ever. This number includes add these 10 billion buyback plan that was announced this year. The next highest year of buybacks was in 2016 just to give you perspective. That might explain some of the buying thats brought us back from our recent lows. Stocks are on pace for their fifth straight day of gains. The dow trading above 25,000 a day. In fact, ill regale you with more the dow and s p back above their 50 day moving averages here. Joining our Closing Bell Exchange to discuss whether this rally is here to stay, peter costa is with us here and Rick Santelli is with us. Peter, we were talking about how theres been a trend lately. The rally has come late day, right after noon and thats when we start to see the afterburners kick in. Its a weird thing. Because none of us can really explain why this would happen. Its happened four out of the last six rallies weve had, have been in the afternoon. Then what weve seen, also, is that the selling balances were very large going into the close and then they all flipped. So its been a strange market. Its been a strange rally. You know, its been a good one, though the only thing were lacking is any substantial volume i think, you know, as we get on in this market during the year, i dont think volumes are going to be all that impressive. I dont think youre going to be apt to talk about it the only time it did is when we had the selloff was when we were down 1,600 pointsch th. Were reminded there about how much buyback activity there has been thats been a theme of this whole bull run is that enough to keep the rally intact well, i mean, i think the most important thing to keep the rally intact was, you know, powell coming out of the woodwork and saying theyre going to try to keep the expansion going and theyre watching Financial Markets if you look at where we came from, you know, over half of the rally was right after that comment. And im pretty sure you have a market thats been addicted today fed stimulus for almost a decade now yeah, are you thinking making that sort of what many people say sounds like a vague remark of monitoring conditions powell is saying if it gets worse were going to step in and do something absolutely. You had one week of where people werent sure all of a sudden everyone started freaking out you know, people were looking for their next fix he came out and said dont worry, were watching it and i think people felt a lot better. How do you read the treasuries the two year hitting a nine year high what do you see happening right now . I think its got aggressors on all sides every flank is an army coming in on one side you have the Central Banks of the world, which, by the way, as of february 14th , h the Cumulative Holdings are at another new high i know that flies in the face of what people think about when they talk about normalization, what our fed is doing. The reality is, the Balance Sheets keep growing slowly eventually the process of all that accumulation has to go through the process of deconstructing all that accumulation another front where theres a war being waged on Interest Rates. The growth in the economy and some long awaited fed begged fiscal stimulus. Its a shame that the fiscal stimulus and the monetary stimulus are alive and well and kicking in the same time frame thats not good. The third thing thats getting hit hard is whats going on with pricing pressures, think weaker dollar think about the fact that the president doesnt like trade deficits part of the trade deficit is our economy is strong and we like to buy imports. We just actually purchased higher pricing pressures as we continue to buy. Many of the goods with the weaker dollar cost more. Listen, rates are going up the only debate is, how high and how fast and those issues will be addressed over time we definitely got carried away when the volatility bubble pops and Interest Rates, just like our guest commented, you can say a lot of things happen on a given day. Just because i do jumping jacks at 9 00 doesnt mean i cause movements at 9 9 15 central backs have no historical comp to what were going through. The dollar index as we speak, the entire rally it got as small as it was is now gone. Were back to the lowest levels not of 2018 but all the way back to 14 again wow all right. 88. 5 on that dollar index. Down. 66 . Weve got Interest Rates going up, dollar going down. What do you do in that environment . Well, i mean, i think youve got to know what you own i expect to see one more rally where you suck everybody in, you make one more all time high and then were going to wind up down on the rayeyear youve got to make sure that you go through your ortfolio, if you have any doubts its time to reduce a little bit. If you had any doubts youd never be an investor youd never buy anything. You wouldnt be human. If you had any doubts youd be on the sidelines for the last decade. Really . I know a lot of people who think theyre right all the time well see. What do you think it sounds like somebody i knew last year. Right were going footo rethink that. Well have a rough second and Third Quarter. Thats going to be choppy. But the Fourth Quarters weve seen over the last four or five years, the Fourth Quarter has been stellar even in an election year. Even in an election year. Well have a choppy middle of the year, slow but choppy. At the end of the year well rally. It makes me nervous the way you talk about the end of the year its like people say oh, this team is up at halftime you havent seen the knicks, you dont know. As far as like investing, i look three to six months out thats my time frame i look at that picture i do think by the end of the year you will start to see some sort of rally again. Not what we saw last year. You know, well be up 5 , 6 which i think is nothing to sneeze at. Im confident with that one. Before we go, and to put you on the spot, rick, when do we hit 3 i think well hit it before the end of this month. Remember the joke i had last month when i said at this rate we could be at 3 by march look at that, its going to happen thanks guys, have a good rest of the day. 18 minutes left. Dow up 264 points. The rally continues today. And when we come back. An inside look at which way the spring Real Estate Market may go. A lot of talk about that. The two Year Anniversary of when the selloff started. Well talk about how much of the recent volatility can be attributed to the rise of the ghbaines when closg llom inbe ces inbe ces rit ck today, smart planning is helping the new new york rise higher than ever. As the world leader in unmanned aerial systems, were attracting the worlds best talent to Central New York. And turning the airport into a firstclass transportation hub. All while growing urban areas into vibrant places to live and work. Across new york state, were building the new new york. To grow your business with us in new york state, visit esd. Ny. Gov. To grow your business with us in new york state, weve been preparing for this day. Over the years, paul and i have met regularly with our ameriprise advisor. We plan for everything from retirement to college savings. Giving us the ability to add on for an important member of our family. Welcome home mom. With the right Financial Advisor, life can be brilliant. Holding onto gains here. If youre just joining us, weve seen pretty good gains this afternoon. What weve essentially done is move back above critical levels for the dow and the s p. And weve gained back more than half of what the major averages lost with the tremendous volatility we saw the last couple of weeks here were making progress. Quite quickly, yeah. Maybe too quickly for some people meanwhile, Bristol Meyers has been one of the best performers in the s p today after Morgan Stanley upgraded the stock to equal weight and raised its price target to 78. Analysts cited significant market potential of a lung Cancer Treatment that combines two of the companys existing drugs. Brist Bristol Meyers up 5. 2 . How about Home Builders . There is a level of uncertainty in the Housing Market. We have a look at new data just out. Yeah, the traders may be phased by it, but the Home Builders are not they are not at all phased by the sharp jump in Interest Rates this month Builder Sentiment didnt fall at all in february. Its up from 65 a year ago and slightly off a high of 74 in december the reason for all the optimism, the tax plan Mortgage Rates were not mentioned which are up. 5 this year and continue to climb a severe shortage of existing homes for sale, thats the biggest thing the Home Builders are profiting off of one Mortgage Broker told me if you dont have a contract with a home builder, things are slow for you. Expectations for sales over the next six months jumped to the highest level since the recession. Buyer traffic was unchanged and current sales fell by one point. We get the Housing Starts tomorrow morning the numbers are running below historical norms and below the current demand as builders struggle with shortages of land and labor. Back to you guys all right thank you. In the meantime, the fcc chair is being investigated by his own organization we have details. Whats going on there . Well, bill, the New York Times reported that the fcc chairman is being investigated by fccs Inspector General, questioning whether his decision showed favoritism to Sinclair Broadcasting it enabled broadcasters to own many more stations he announced a 3. 9 billion deal drawing criticism from many on capitol hill for giving a Single Company too much power given that fcc is under the chairmans leadership, we imposed a 13 million fine against sinclair the accusation that he has shown fav f favoritism is absurd. Interesting weve seen the ig who has been incredibly proactive we just saw the head of the va over whether they doctored emails. But in the case of the fcc chairman, i know how much it can be escalated and what it could mean for that deal. Did somebody bring this charge, or how did this begin, did you say . So this is only just reported, but there was conversation from congressmen on capitol hill they say its something theyre happy the secretary general is doing this if you go and reach out to the fcc thats the statement they gave us and they wont say what the Inspector General is working on this could be in the works and its definitely one of the media deals thats drawn so much concern and criticism. This is about the future of local tv news. Its been drawn out thank you, keep us updated on that one. Ten minutes to go. The s p up 26, nasdaq, strongest performer once again wouldnt you know, it will be another big afternoon for earnings one name out after the bell tends to move an average of 12 after it reports osg lls en you what it iwh clinbe comes back. Lets begin. Yes or no . Do you want the same tools and seamless experience across web and tablet . Do you want 4. 95 commissions for stocks, 0. 50 options contracts . 1. 50 futures contracts . 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We could see some big moves from names reporting after the bell for example, according to our data partners, cbs has moved an average of 2 either up or down over the past eight quarters following its various Earnings Releases shake shack has seen more volatility, moving an average of 7. 4 on earnings but its truecar thats been the real swinger seeing an absolute move of 12 over the last eight quarters after it reported earnings our reporters will be standing by as usual to bring you those numbers as soon as they hit the tape. Speaking of big movers, lets take a look at the energy sectors. A rough stuff to the year, down 6 since january and particularly hard hit in the selloff we had it struggled to regain its prior levels part of that weakness comes from a drop in Oil Prices Oil is down 4. 5 over the past month. Disappointing earnings from the likes of exxon and chevron. With the dow up 263 points, well come back with the closing countdown in just a moment. President trump is in favor in a hike of gasoline tax. He says that would wipe out the benefits of tax reform for consumers. Youre watching cnbc first in business, worldwide. Exshares etd the Way Investors think. With objectives like building capital for the future, managing Portfolio Risk and liquidity and generating income. Thats real etf innovation. Flexshares. Built by investors, for investors. Before investing consider the Funds Investment objectives, risks, charges and expenses. Go to flexshares. Com for a prospectus containing this information. Read it carefully. When this bell rings. It starts a chain reaction. Thats heard throughout the connected business world. At t Network Security helps protect business, from the largest Financial Markets to the smallest transactions, by sensing cyberattacks in near real time and automatically deploying countermeasures. Keeping the world of business connected and protected. Thats the power of and. Your friend just marea. You like her. Shes really good at social media. She buys stocks in companies that stand for something. You like her. Shes always up on the latest trends. She got in early on the whole goat yoga thing. And her sunsets are always nofilter. You like her. But youd like her better if you made more money than she does. Dont get mad at just marea. Get e trade. Two and a half minutes left. The dow is up. What is it about 1 00 in the afternoon eastern time were up for the fifth straight day. For the most part much of the rally we see, the gains we get, have come after 1 00 in the afternoon. And were all trying to figure out why, what the timing was today, we had a selloff on the open this morning, the dow actually went negative and then a v bottom and we took off and it really took off after 1 00 in the afternoon. The ten year yield pulled back a little bit were at 289, 290. The two year note went to a nine year high. And to get to a ten year high, you have to go to 5 weve got a ways to go before that happens but, with the ten year pulling back a little bit, utilities were better performers today thats been a very volatile group. But today it was a gainer for the major averages among the sectors in the s p retail, weve been highlighting, was a stellar performer today. Especially after we got word a lot of hedge funds were buying Retail Stocks. Everyone got spooked yesterday about cpi, Consumer Prices having gone up. If you take a look at gasoline prices since the month began, down 8 , thats just in the futures. Then on top of that, its february those tax cuts are just now starting to kick in to paychecks for a lot of people. Companies have figured out how to rejigger things when you look at the february picture, possibly much better. Today, very interestingly, we got that big number with regard to wholesale prices. You saw it, people are going to get freaked out. They did for a minute and we were expecting it, in that case. Exactly now were starting to absorb the fact that we do have the higher data points when it comes to inflation and rates. Whats interesting is, were back to normal a little bit. Remember all time highs . Ten of them in the s p today, among them this group, which is where a lot of the futures trade, a lot of financials today. Financials have been very busy is it too much, too soon . Theyre going to talk about that coming up next hour with the dow finishing up almost 290 points stay tuned for those earnings. And those votes in the senate on immigration, coming up in the second hour of the closing bell. See you tomorrow, kelly. Thank you, bill, and welcome to the closing bell. Dow is going up with a 300 point gain 1. 25 for blue chips about the same for the s p the dow is back above 25,000 but i dont think were going to see a lot of celebration to celebrate that marker. The s p 500, up 32 points, 2,731, the nasdaq, the best performer up more than 1. 5 to 7,256. Some of the best performers there include netflix, cisco having a good day. And the russell 2000 small caps up 1 . The dollar has a huge head wind today. The russell is still managing a 1 gain. Weve got big earnings to come today. Two big names in particular. Joining me on the panel to talk about these markets, is michael santolli, along with the chief Investment Officer at heartlandfici official. In the dow today the biggest winner was cisco and the biggest decliner was United Health in the s p the big warmer was eqt corp the biggest loser was eqiuinix. Its starting to feel like that two week spurt in volen tilt and a thousand point in beclas becoa memory. It makes sense to look at the chart and see how much ground we lost in a hurry and weve gained back more than half of it. There really was not that much, kind of the aftershocks following friday there definitely was a lot more forced technical selling that dried up what are we left with after that were left with treasury yields which are stocks going from the moment they already were a stretch towards their highs. That takes away one wolf at the door then you have the fact that we have huge buybacks and all the other stuff that got the market up to that point in the first place. I think it makes sense what were doing. I do also think, though were at a logical point for it to maybe run into friction. It doesnt make sense, or does it feel like weve come too far . Wouldnt say too far. If we went straight from here back up to the highs in a few days, then youd start to see, you know, were right back in slo mo mode. You were saying as we kept lifting off this year, you wanted a correction. We got it, it was pretty quick do the markets feel to you that theyre at a healthier sustainable longterm level . Look, this is a more muted correction than any weve seen in this bull market. The previous three have been in the middouble digits. We have said we expect to see multiple flattens. B in the 2003 tax cuts, stocks sold off and three months later they were up 15 we are pricing growth here are you still able to find good values in this market are we is it kind of back to the momentum driven markets of the past for you well, were finding reasonable values. I dont know about good values at this point, things are still pretty pricey. But there are names out there that are reasonably prices when apple sold off, that probably was a bit unreasonable. The balance is all really about the fear of investors missing out. I dont think we can discount that i think, really, you have this huge, huge numbers of people and investors that felt like they missed out on the move up. Theres this buying pressure that happens when markets drop and when 10 down feels like a screaming opportunity to people that have been in cash for years, i think thats when you start to see upside pressure i do think we have to keep in mind the possibility that we do go sideways for a while. Even if its within the midrange, clinging towards the highs, we did that in 2012, theres nothing wrong with that its not a matter of either were pulling back sharply or were making new highs every day. We can knock around for a while. And you know, that would be a positive i think for the market. If you have a consolidation period of time where things are calm for a while, we have a flatness to the market, i think thats going to give a chance for earnings to catch up with some of the pricing. I dont think markets being flat is in any way a bad thing at all. I think its probably healthy. Great. Nancy, i was wondering, too, we mentioned we have this odd combination of Interest Rates. Theyre kind of holding in there at elevated levels while the dollar is quite weak now the valuations are going back to where they were when we were starting the year where are you finding Good Investments . Its stock specific we continue to like names like cisco, though it has run, admittedly for the previous 20 years it hasnt done darn thing. This is a company thats gotten back on track and theyre retooling. It takes a long time and they are beginning to see the results. Were really focused on the fact that its not just earnings that are improving, its revenues that tells me theres underlying strength in the economy. I was at an Aerospace Conference last week and the head boeing, f those defense companies, though theyve run, they are turning into Growth Companies away from Cyclical Companies we like a lot of those names. Yeah, especially on a week when weve gotten the High Consumer price index readings, the Consumer Price index this morning were more in lie are you concerned about inflation . Those numbers were the price. We need to see a trend because there are still a lot of deflationary aspects to this economy that were seeing from technology were watching that. Were concerned but were not moving away from the markets because of it yet. What are you guys doing inflation is something to watch. Investors need to remember if Interest Rates rise and weve seen Interest Rates rise as measured by thetreasury, it ha to do with the flow. Markets dont like surprises if Interest Rates start to rise in any steep manner, thats going to beproblematic if they creep up, this is normal i dont think its going to be an issue as long as the slope is not too steep. Thats something were watching really carefully cbs reports are out. Cbs beating on the top and bottom lines reporting revenues of 3. 92 billion. Wall street had been expecting revenues of 3. 7 billion also looking at adjusted earnings per share of 1. 20. 1. 14 was expected there was interesting commentary in the quote from the ceo, announcing they now have 5 million subscribers as cbs all access and showtime combined he said the total Subscriber Base continues to grow at an accelerated pace he also gives guidance for 2018. Saying specifically we expect 2018 to be a strong year for the Cbs Corporation with Revenue Growth in the high Single Digits and eps growth in the high teens from the record 4. 40 for the full year that were reporting to you today saying they feel good about the growth path. Of course, the big question is for cbs is whether theyll recombine with viacom. Back over to you yeah, i was guessing there wasnt any announcement. Im sure theyll be asked about it on the call they formed the special committee to explore it. Cbs shares up about 2. 5 . Yeah. I think the picture that took shape this quarter is that the tv business has done better than feared if you look across the companies that have reported so far, it makes sense. The stock is well below its high i think probably because the market is kind of sorting it out. Cbs would perhaps be the de facto buyer. And the one that, you know, isnt necessarily the partner that needs a deal. But would maybe be push into it. Absolutely. Nancy, your thoughts i mean, its stock that trades well due to significant underperformance the last year theyve been retooling by decreasing ads i think its positive news and a step in the right direction. And i expect youll see some improvement in the stocks. They didnt blow the doors off well have to wait and see what happened on the call shares are down 10 over the past year. Thank you, thanks for joining us we have a news alert on the immigration vote in the senate to get to. The senate has failed to advance an immigration proposal that the white house had strongly supported the vote against it was 5940. And that proposal would have created a pathway to citizenship for Daca Recipients in exchange for border wall funding, limiting family sponsorships and turning the visa lottery into a merit based system earlier today the senate also did not advance a bipartisan compromise with some more narrow measures that would have only addressed both the pathway to citizenship for socalled dreamers as well as border wall funding and some, what the president is calling, chain migration. This means the senate is looking like it will leave for recess without any solution to the immigration problems that has vexed it for the past several months senator john cornen saying the clock is still ticking as immigrants worry about what their status will be going into that march 5th deadline when the daca program will officially end. Back to you. All right. There is a lot more ahead on the closing bell straight ahead, just when you thought it was safe to go back to your bank account, see what a gasoline tax could do to american spending habits how much of the tax cut will it wipe away . Plus, where some of the countrys smartest investors stand on facebook, amazon, netflix, alphabet and apple after last weeks fall. And at 5 00 p. M. Eastern, more olympic curling, as the u. S. Womens team takes on the swiss. Shake shack earnings are out. Lets get straight over to kate rogers. That stock has been all over the place. All in all the Fourth Quarter very strong. They reported adjusted eps of 0. 10 for the Fourth Quarter the street had been predicting 0. 06 ju 0. 06 adjusted comp sales are up. 8 . The street was predicting they would fall 1 . Well take you through the store openings they had for the Fourth Quarter and what theyre predicting they opened up 16 shacks in the Fourth Quarter 26 new Company Owned shacks for the year, 19 licensed stores they plan to open between 32 and 35 domestic Company Owned shake shacks in 2018 and 16 to 18 net new licensed stores internationally in 2018. And theyre also saying its going to be one of their biggest years yet. By 2020 they want to have at least 200 domestic Company Owned storesi storesi stores the stock is just slightly in the green. Yeah, about 1 . Thats a pretty big number for store openings. Wall streets spear index is down 40 since spiking last friday a lot of investors agree the volatility is disturbing do you agree the volatility is coming to an end i think volatility youve seen the trends over the last couple years it was due for a spike up, might happen, which happened i do think that there could be, you know, a period where volatility comes down as the market settles into a paradigm i think its at a higher level than what weve experienced the last six months or so. That would be i guess a good thing for a bunch of the companies you following in terms of the Online Brokers to the extent its, you know, good for retail trading then you have this other element of this whole volatility selling trade that became so popular that maybe its been undercut at this point how does that shake out in terms of whats good and bad for the industry i think youve got a right. For the industry they want to see more buy in. They benefit when the markets move up and down thats what weve seen over the last week two. It was pretty docile for the last six months to a year. The question is whether the low volatility, whether, you know, it has rung out traders where they dont come back into the market i personally think a lot of people have made money and theyll just reset their hedges, the points that they showed volatility a lot of people have overlooked volatility a lot of people made money last monday and volatility can be beneficial. An investor said it is a legitimate market instrument but its not an Investment Vehicle is there going to remain a place in the market for instruments like these yeah, i think thats the question i dont think theres a question of volatility products i think theres a question, mike has pointed this out in prior days when you have an inverse leverage dtf, you know, by definition if its a 2 x inverse, you know, its mimicking it goes up by 50 your assets have gone to zero i did review the credit swiss ceo and his statement, they warned people of that. Well see where the regulators take a more try to give investors more protection. But the issue per se, wasnt just volatility, its the inverse etf structure that has come under scrutiny here. Yeah, i wonder if theyre going to end up having to go to some kind of system of distinguishing even from regulatory points of views these are for professionals as opposed today retail investors. Theyre built for a one day positioning type of trade. They tell you that but nobody is stopping you from cashing in the i. R. A. Top performer in 2017 until it collapsed still to come, bitcoin is above 10,000. Were going to talk to a strategist predicting some new highs for the crypto currency this summer. First its well known Grover Nordquist is no fan of taxes, hell tell us why, next. Tomorrow, its a day filled with promise and new beginnings, challenges and opportunities. At ameriprise financial, we cant predict what tomorrow will bring. But our comprehensive approach to Financial Planning can help make sure youre prepared for whats expected and even whats not. And that kind of Financial Confidence can help you sleep better at night. With the right Financial Advisor, life can be brilliant. At holiday inn express, we cant guarantee that youll be able to contain yourself at our breakfast bar. Morning, egg white omelet. Sup lady bacon fruit, there it is but we can guarantee that youll get the best price when you book with us. Holiday inn express. Be the readiest. In the 2018 lexus es and es hybrid. Lease the 2018 es 350 for 339 a month for 36 months. Experience amazing at your lexus dealer. President trump has suggested a 0. 25 gas tax hike to help pay for his infrastructure plan. The extra expense could have an impact on the economy. Heres what the former ceo of hudsons bay had to say about the impact on retail. Gas prices are low by historic standards you take a look at how much people spend on gasoline, its pretty low its declined pretty sharply over the last few decades. We thought wed get a stronger sort of windfall as Energy Prices decline theres clearly some elasticity, its clear that gas is a necessity. It doesnt add up to much at the end of the day im not too worried. And that proposal has been around since i was a child joining us is the founder of americans for tax reform thank you for joining us it was interesting he dismissed the impact on consumers a little if you assume gas prices rise it could give back 60 of the tax cuts on individuals. And even if you dont assume gas prices, that wipes out 30 of the impact are you surprised the president would support this well, the president evidently said he was open to things at a meeting. Others at the meeting, republicans at the meeting didnt hear him endorse anything ive spoken with republican leaders, this is dead on the house and the senate side. So the president could say im all ears and it doesnt affect anything youre quite right the president of the United States is not going to put his name or his partys name on a massive cash grab between now and election on okay, heres the Washington Post quoting senator carper of delaware a democrat who said to my surprise President Trump today in our meeting offered his support for raising the gas and diesel tax by 0. 25 a gallon and dedicating that money to improve our roads, highways and bridges trump came back to the idea of an increase several times throughout the meeting and even offered to help provide the leadership necessary so we can do something thats proven difficult in the past. Do you think that is all it sounds like there was something in that meeting the president supported. It sounds like it was a 0. 25 hike. Carper is a longtime supporter of tax increases in general. The president ran as someone who wasnt going to raise taxes. I talked to the leadership, this is going no where. The modern Republican Party in california expects to do well in a blue state because the democrats just raised the gas tax in california. The republican running for governor, the ones for state legislature, congress, all the republicans are running together against the democrat gas tax i do not believe that President Trump will side with the democrats or lose up to half of the benefit of his tax cut which has made him more popular. Hes up at 47 on some polls made the Republican Party more popular. Its a real tax cut for the middle class a gas tax is an attack on middle income america. Its been shown it correlates with his Approval Rating which you just cited we know that correlates with how theyre going to do in the midterms it looks like maybe there was some life there, movement their way lately i hear everything youre saying. Well see. Because this president is known to surprise us what should they do if they do want to raise more funds for infrastructure there was some money already put towards that in the spending bill agreement what happens if they want to do more is there a better way you think thi of at least a quarter you now pay in your gas doesnt go to roads. It goes to other stuff the stuff that is actually interstate commerce, less than that take a look at those, the money that the gas tax raises now and put it into roads and put it into the roads and bridges that need it. Not into pensions for people who run subways in a handful of cities add to that, there a number of suggestions, the federal government has a lot of loans outstanding, Small Business loans, other loans they shouldnt be in that business in the first place. Having made them, take those loans, bundle them, sell them off. Theres more than a trillion dollars worth of loans out there. Use those one time assets, sell them off and take those resources to do a onetime big improvement on our roads and bridges, which is necessary. The federal governments owns a lot that they could stell. There are innovativinnovativi there. Thanks for joining us. Good to be with you theres more earnings lert well start with a loser, thats truecar, the obanline mark marketplace. 83. 1 million. First quarter revenue was light, down 8 right now. After closing up 6 in the regular session. Second stock mover to tell you about, is sleepnumber, the Mattress Firm reported an earning of 0. 33 per share and revenue was also much better than expected. 363 million shares of sleepnumber are up 13 right now in after hours trade back over to you all right. Thank you. Morgan brennan there well keep an eye on all these movers lets look at how we finished on wall street. 1 gains for all the major averages russell just about at that threshold. Nasdaq was up 1. 5 the tech sector one of the better performers today as well. Energy was the lone one in the red. We had cbs and shake shack earlier, we saw movement to the upside there cbs shares are still up 1 same goes for shake shack at that level lets get to some of the other big stories of the day now in our rapid recap. Battle back stocks on a four day winning streak now dow futures are pointing to 300 up points today at the open. Markets get ahead of things, they get behind of things. The real world looks like its in fine shape at the moment. Economies are expanding all over the world. One stock thats coming back is boeing, its up 20 this year alone and more than doubling over the past 12 months. I think youre seeing the market is responding to what is fundamentally a very strong airplane market. Aerospace market globally. The fact that were delivering on our commitments. Last night, cisco was out with strong earnings strong Revenue Growth, actually. Huge Revenue Growth. Announcing plans for its overseas cash. Were pleased with what we did, very happy with the execution as a team. We delivered and were optimistic about where we are. That dow, index along with the s p on pace for their best weekly gains now since november of 2016. Dow is going out with more than 300 point game on the bell. Thats right at session highs. A gain of 1. 25 there. Apple climbed more than 3 . They revealed stakes in their filings. We have a look at who isnt jumping on the tech trade. If theres one thing that still seems to be in favor, its definitively apple Berkshire Hathaway increasing its position by 2. 1 million shares the oracle of omaha firm was nonbullish on other tech names its owned for a while ibm. Berkshire hathaway pairing back its stake, holding a mere 2 million shares after a massive run up some hedge funds to time to crystallize those games. Some of google was sold. A firm looked at what it determined to be the ten best stock pickers during the quarter. According to their analysis, the largest increase in ownership was a name in the tech sector, as was the largest decrease in ownership. Now, the biggest addition was for nxt semi conductors. The biggest decline in ownership was for twitter. The social Media Company got a small vote of confidence from Greenlight Capital the firm scooped up 2. 7 million shares of twitter during the quarter. I should note, these holdings are as of the end of december and may have shifted in the six weeks since then. Thank you joining us for more on how to trade those fangs, is our panel. If you look at what really takes you go back five years and look at the performance. The tech sector is definitely leap and bounds, heads and shoulders above everything else. Followed by consumer discretionary, which you wind up getting netflix and amazon in there. It winds up figuring out how to rear its head again. Its not the only place, but when you think about it on a long term basis this is where people reach for growth. This is where they think about growth its analogous to global growth, theyre all tied in. If you think about it, what we know is in the Fourth Quarter a lot of these names werent really in the highly loved camp. If you think about facebook, google and apple theyve underperformed the triple qs by 5 , 10 since may of last year so to some extent, we got Fourth Quarter numbers out of all these companies. I think the ones that gave you the most to maybe trade on and rebuild support are apple and facebook i think google was already in a place where those Third Quarter numbers were strong. Part of it is, when youre talking about the aggregates, the biggest stocks will be wellrepresented its such a change when hedge funds would try to get away from whats in the bench mark youre not going to pay me to buy the top five biggest stocks are nasdaq stocks im not saying its wrong but in bull markets thats what happens. You have the selloff and the rally back and you get the names that had the biggest bumps, the amazons, the netflix look at year to date jumping on what tim just said. Year to date performance is where these guys are to grade them by late december to now, year to date what the performance has been. So if you sold everything with the market, these names got hit and these names bounced back more so than the overall market. You have to play these monster names. Think about the funds these are big monster funds and a lot you could put into these names. Always a pleasure its time now for a cbs news update heres whats happening at this hour. The Senate Holding a moment of silence for the victims of the Florida High School shooting florida senator bill nelson says now is the time to discuss gun control legislation. To those who say now its not the time to talk about gun violence because its too soon, we dont want to politicize right after a tragedy, thats what is said over and over then i would ask when is the time the white house flag was lowered to halfstaff this morning. A little bit later appearing on msnbc was a father whose daughter was in the school, luckily she was not harmed. We live in a society, yes, i agree we need safety or Better Safety in the schools. Yes, we need Better Mental Health in the schools. But i dont want to take anyones handguns, thats not for me to say. But the ar15 its not relevant to anything we do as a society and that is the cnbc news update closing bell is back in two minutes. Anything worth pursuing hard work and a plan. 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Welcome back the rebound continues, today the dow adding more than 300 points to close back above 25,000, 1. 25 gain the nasdaq composite leading the way again as it has. Its up if it was 7. 5 yesterday it must be 9 today. From friday afternoon, its at 7,256. The cbs Earnings Call is underway last check it was up 1 . Cbs not making any plan to reuniting with viacom. There were a lot of details at the top of the call about how optimistic they are about growth in 2018 because of the combination of going direct to consumer, including their product in different digital bundles as well as their core more traditional business. The ceo talked about how they have five million subscribers between cbs all access as well as their showtime service. The fact they have 5 million now means theyre ahead of schedule in terms of hitting their goal of 8 million by 2020 they gave details to two near direct to Consumer Services that are in the works one is a cbs sport app that will debut right before march madness and the masters. It will be 24 7 News Highlights and analysis its going to be ad supported saying theyve setting themselves up for the consumer future theyre also announcing a service thats built around the entertainment tonight brand. That will be an entertainment app. He explained how this is part of the strategy of launching multiple over the top Services Direct to consumer around the world as a way of diversifying and getting to consumers where they are now and a lot of emphasis about how theyre getting paid more for streaming services than they do from traditional bundles theyre confident in their growth even as Consumer Habits change we should expect some questions about whether or not cbs needs more scale to compete in this landscape, of course alluding to the merger but nothing in those prepared remarks. The cbs viacom one might be a countermeasure more streaming platforms you know, its someone needs to come together and knit together these apps. On a single platform. Like a monthly subskriepcrip he took gold in vancouver in 2010 and cbs is your home for olympic curling, the womens match is coming up at 5 00 p. M. Eastern tonight. Stay tuned some moments can change everything. You cant always predict them, but you can game plan for them. For 150 years, generations of families have chosen pacific life for retirement and Life Insurance solutions to help them reach their goals. Being ready for wherever life leads. Thats the power of pacific. Ask a Financial Advisor about pacific life. With 150 hours of usa events in stunning 4k. 50 olympic channels dedicated to all the mustsee moments, and the ability to find anything with the sound of your voice. [ upbeat music playing ] show me bobsled. Catch all the action. Every moment, every medal, every screen. X1 is the ultimate olympic winter games experience. The u. S. Womens Olympic Curling Team has its second match coming up at the top of the hour last night they lost to japan. Tonights match is against switzerland. And it all begins in 13 minutes time dont miss a single throw. This sunday marks eight years since figure skatthis figure sk 2010 what have you been up to since some skating. I tried to come back after my win in vancouver to compete in the 2014 sochi games, but some injuries and subsequent surgeries kept me out. Then i went on to work for a Real Estate Firm called charter. How did you get involved in real estate after that honestly, i wasnt sure what to do after skating ended. It had been my whole life and my focus was so singular towards that gold medal. I had a friend who was one of the Founding Partners of charter. He said its a great stepping stone, if nothing else i learned a lot. I worked on the property rep side. I wonder how many Young Athletes struggle with the same transition you hear about the difficulty with the transition, on the other hand theres a sense of somebody who is able to dedicate everything to a goal that you can redeploy that . Is that possible i believe it is yes. Im appreciative to my current employer, vera wang, another good friend of mine, for believing that those skills i learned as an olympic athlete are transferrable. How did you get to know vera wang is designing the outfits now . She dressed me for my olympic performances shes also dressing a skater tonight, nathan chen, from the United States. We have high hopes for him i got to know her very well because its a close working relationship between coach and clothing designer. I knew working real estate i wanted to be on the brand side vera was my first stop and i basically asked her for a job. My role has evolved since then ive been with the company over three years, im very lucky. I feel fortunate to be given the opportunities. Someone took a chance on me. Whats the state of figure skating for the u. S. Right now in terms of trying to evaluate where it sits. Hard to predict so much can go wrong the state of u. S. Figure skating on the mens side is incredible. Nathan chen is one of the heavy favorites for gold a lot of pressure on him its hard to see when you start winning internationally, even domestically, because people expect it. Youre doing these physically grueling tricks with the weight of ten worlds on your shoulders. Im hoping he can skate relaxed tonight. I know hes trained and ready to go to go and he is going to look great. You are going the make sure of that. Definitely. One question we like to ask people, what is the biggest money mistake you have made along the way . Training for an Olympic Games is very expensive. The United States Olympic Committee receives no federal funding. Its all privately funded and a lot of athletes rely on corporate sponsors i was lucky to have incredible Companies Like cocacola and ralph lauren behind me but i paid a lot of money to train year over year over year. Does that mean debt or where did the money come from. Not necessarily debt but when it ended after three years unsuccessfully, and with no medal in sochi, therefore, not being able to reap the financial benefit of success at the Olympic Games, it was tough pill to swallow. What happens. Do the sponsors kind of then just drop you . That must be extremely difficult after having been at the absolute sort of peak of where you can be. Its difficult anyway its difficult standing on the podium and then stepping down and knowing you probably will never experience that personal high again in your life. Im trying im trying to find that in business but its such a private victory which to me superseded the public finding that again is hard im opportunity to have had the backing of some of the most incredible multinational corporations in the recalled would. When i competed i didnt expect that to go on forever. I know they would want to capitalize on the current and most valuable olympians as well they should. So your advice to anyone going through that same gamble now, frankly, the training, what would it be . There is no way to combat it. I think the answer is yes, dream big. Put everything that you can into training be smart of course with investment where you can and save money where you can but you almost have to go for broke as an olympic athlete. You only get that shot once every four years to me it was so worth it the first time to put everything in and get the gold medal out that i was perfectly willing. We hope that you reach equal success in your current career evan lysacek joining us. The olympics is taking cnbc by storm we will have a curling lesson from the clubs members. Hi i am joe angeli from the plainfield curling club. Im here to discuss sweeping the importance of sweeping is to maintain a rock on its path or to make it go further. And that is sweeping mom and dad got a new car. Its not theirs. Its mine. Mine. Mine. And it always will be, forever and forever. The new rx 350l with three rows for seven passengers. Experience amazing at your lexus dealer. Flexshares etfs are built around the Way Investors think. 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We sent our intrepid reporter eric chemi to find out. I kroev an hour to my nearest curling club to get a lesson in curling. I have never played it before. I have watched it a few tichlts i hope its not too hard and i hope i dont embarrass myself. I have never done this before. Right. You think i should do this without training first and then you will show me what to do . Yeah, eric, i think you should try. Oh, my gosh now you have to let it go good whoa. Wrong turn again. Whoa. I want you to press forward bring it all back, and then push hard with that right leg. There you go thats it. Oh, yeah now you can let it go right there if you wanted. I am a champion another important thing in curling is brushing. Two good brushers will take a rock eight to ten feet, even 12 feet further get your low land low there. You gave us another big one. Pretty good. Whoa, whoa, whoa wow look how good that was. Perfect lee swept. He is putting us out of business. Perfectly swept because we didnt sweep it. If we would have swept it it would have gone too far. Eric is here now. Ipgdid it looked like you got the hang of it by the end . I got the hang of it but i dont know what was harder, the sweeping takes a lot out of you. The sweeping is hard to do. He said they train with sprinting intervals because you have to sprint to really get in there. But the balancing on the tossing, the throw, whatever they call it, that was difficult. I wasnt pretending. Mike asked me were you pretending to fall down in that thing just for good tv i said no, no. You look uncomfortable. You were trying to break the fall. The brace you had, is that for training a plastic balancing thing that you use to keep yourself up but the pros they are just using their sweeper. The sweeper is the balancer. They call it a sweeper, not a broom. They might have called it a broom. I was having trouble just keeping on two feet. Broom or sweeper, i dont know i know they were sweeping. Whats the deal with the shoes they are wearing how do those shoes move on the ice. They had a slippery raceline shoe and a regular shoe you notice, they walk with one foot and glide with another foot thats something to watch this evening. They are gliding with one foot is walking with another. It is an interesting hybrid how they do that. I did try it. I did try it i think we have some of this footage. It was you will see how truly difficult it is when you realize i couldnt even move that stone. It was so heavy. [ laughter ] you are not doing enough bench press. I mean, i couldnt. I want to see where that ended up it could have been perfect. It didnt go anywhere and see the white thing on the left, i kept sending that flying too. Oh, yeah. You are suppose to hang on to that i let everything go. I like the starting blocks, it reminds me of track and field. Those thats another thing to watch in the games, the starting block that they get their momentum off of. I never noticed that before watching curling i thought they were just in a crouch and moving. There is so much more to it. We didnt get into the twisting part of it. The curl part. The wrist this was just the release eric, thank you for giving it a try for us eric you bright and early tomorrow on squawk box right now, the womens curling match between the u. S. And switzerland. Hello again and welcome to day four on cnbc curling nothing bu