Transcripts For CNBC Closing Bell 20150316

Its the euro dollar. As that has been under pressure its put some pressure on the market. Also stay with us for an exclusive interview with lift ceo logan green. Ride sharing Companies Like lift and uber are under fire recently. Theres a lawsuit from drivers that could increase their labor costs. The question is are drivers employees or are they contractors, independent contractors in relationship to uber and lift . Big difference. And theres an interesting point diane made on our panel just at the end of the last week where she said were becoming sort of the next generation, a 1099 generation not a w2 generation. A lot of odd jobs that ultimately has to prout youvide you a standard of living and health care. These questions all underpin the conversation were going to have. Very, very important. Lets show you how the markets are trading right now. The dow is about at the highs for the session with a gain of 232 points. 1. 3 same amount percentagewise for the s p which is up 26 points at 2080 and the nasdaq is at 4926. Boy, if we have another day like this we could back to that mythical 5,000 number. Maybe you will be around. Maybe i will be. And this one will stick. Joining in our the Closing Bell Exchange amy wu sam stovall, anthony chan from chase, jeff killer killberg from kkm financials and so is rick santelli. Amy, riddle me this. One day well have a big rally, the next day a big selloff the next day a big rally. Its been like that a couple weeks now. Whats the market doing here . Is this confusion or is there something going on with this volatility . Hi guys. From an Options Market perspective, obviously the fed is the most important thing people are waiting for for wednesday but ill tell you honestly, what investors are doing right now is focusing on the next 6 to 12 months in options land even though we have the fed coming up. The markets really only pricing a plus or minus 2 move for this week. What theyre really worried about, whether its going to be in june or september, is the rest of this year and thats really where youre seeing the tail hedges come in whether thats in emerging markets or in s p or s p relative to europe or a domestic market like iwm. Its really not the recent term theyre focused on. Its really the longterm tail Events People are concerned about. Anthony chan how focused are you on the u. S. Dollar and would you say theres a strong correlation now between the dollar moving lower and stocks moving higher . Well i think, kelly, what you see in the stock market is that when Energy Prices come down, thats always a red flag. But all of a sudden when you see the dollar going up too much thats also a red flag but today you had energy going down which is not necessarily good news for some people in the market, but you have the dollar also giving up a little bit back. So net net what you have is the market more or less trading on a relief trade here that we have this fed meeting and perhaps the Federal Reserve wont disappoint. Yes, they might take the word patient out, but they probably will tell you that the data is sufficiently cloudy that they may have to wait a little bit longer. Jeff, whats the volatility lately telling you right now . Whats the message of the market here . Well bill its a great point. We are seeing a twopoint premium in the april vix. I think Retail Investors should really take caution when we see this emotional move this volatility like you spoke to of the vix, we will see continued movements. Up and down 1 but this is the time this should be a slap in the face to the Retail Investors. They look at your portfolio. Where are you susceptible . Get ready for continued volatility. Does the market act with this volatility, jeff like its more like a top or like a bottom here . What do you think . No its acting more like a top. Its a slow moving top but when you see that volatility look at the eurocurrency. Last year it never really moved. It was that slow steady step up, and now were seeing dramatic volatility. I think the same thing will be coming to the u. S. Equity market. This volatility cant be contained in one asset class. Its going to spill into every asset class. Rick do you think this is just the dollar taking a pause after the incredible run its been on here . I think its the euro taking a pause on its incredible debilitating run. Its semantics to most whether youre short the euro or long the dollar you get your check. I think its very important to understand the proactive part of any trade if you really want to understand how long the trade will last and whats really the driving force. The dollar index down 0. 75 because every currency i can see on the board is doing better. I think the fed issue is a big one. Whether it was Peter Boockvar or myself as we get closer and closer to wednesday and the worlds focusing on one word in a statement, i just think theres a bit of irony there that theres so much more within the economy to talk about like every single number today was a miss and here we sit up 230 points. Actually, rick, thats why i asked because i wasnt sure. That Industrial Production number pretty weak. The mining number in there was terrible. I thought maybe the weak data was pushing the dollar down but youre saying no thats the tail, if you will the euro is still the dog. Yeah i think it really is. I think this is important because we could talk about as greg said theyre not really manipulating, its not really a currency war because theyre trying to do Something Else that indirectly makes the euro weakly. Collateral damage is still damage. What the ecb is doing is a little bit more important in the grand scheme of things to the dollar and i think what the fed is doing is going to be hugely important for the u. S. Yield curve and the notion that, you know, its hard it get our bearings. Everybody is looking for a flattening of the curve. Im not so sure im convinced. Sanlm, we havent forgotten about you but the headlines are going to currencies and oil and the fed policy but youre the earns guy earnings guy. They have not impressed. No, they havent. Con seb shus numbers are pointing to a 3 decline in the First Quarter. Were looking for five of the ten sectors to post red numbers. The biggest, energy down more than 62 , but add to that telecom, materials utilities, and consumer strainaples and investors are wondering what kind of news regarding the strengthening dollar and the impact on these multinationals will have. Are you seeing any sectors getting a lift from this . What youre find something people are gravitating more toward the domestic oriented areas. Consumer discretionary has done exceptionally well to the point where the valuations i think look overbought and am a bit worried about jumping in to follow the momentum but the Consumer Discretionary because low Interest Rates i think that the Economic Data today is now causing some to push out when the fed will be raising rates and thats an additional reason to be optimistic. Amy, do you agree with jeff kilburg that this volatility signals a top more than a bottom . Is the market walking on air essentially . Yeah, to some degree yes. For a long time we had the fed put in place, right, and now thats been removed, but thats sort of followed on into europe. So the question is theres a volatility band in one market and not necessarily in the other, and yet with that being true we havent actually seen too much happen with the vix handle at 16something last time i checked. Even though we had this big scary, okay, the fed put is gone, whats going to happen next . The reality is not too much has happened, and i dont know that much will until we get even with fomc wednesday we have a plus or minus 2 move priced edd into the market. Thats pretty standard and we dont see anything being put on in place either short term or long term. Its a lot of talk but i dont see much happening. Jeff even though the fed bid is going away the corporate bid is there and its so strong and last week we had the biggest ability of announced stock buybacks in history, 80 billion worth. 57 billion of that was the financials to be sure after those stress tests. But isnt there a huge source of did he mand from the corporate sector that people need to be aware of . I think absolutely kelly. Youre seeing that those buybacks, that should be scaring investors. When you see folks buying back their own stock, they cant put money anywhere to go. The ecb undercurrent, that money has to find a home somewhere. Theres a lot of confusion in the market. I think its a great point, these corporations are just as confused as the fed is. Anthony, you were the first guy we heard say that patient was coming out of fed language. That was a few weeks ago. You still thats going to happen wednesday, but does that necessarily begin the clock on when they will start to raise rates . I think it begins the clock, but that clock is going to be moving in real slow motion because the Federal Reserve certainly doesnt want to upset the markets. They dont want to upset the overall economy. Remember, this has been a multiyear process for the Federal Reserve whether you agree with them or not in terms of making the economy recover. They certainly dont want to do anything that would put that in jeopardy. Is it possible were overthinking this . They say its data dependent but is it possible that they are on a time table, an unspoken time table and they will just test the waters by raising the rates one time in june just to see what happens . Well, i think that could be possible but remember bill that the economy is in fact recovering. I know today we got a few data point and got some people nervous. The Industrial Production the empire state. Guess what happened last year at this time when weather was inclement . The economy was weak in the First Quarter. As you progress through the year the economy recovered just fine. Weather wasnt that great in the First Quarter so im not shocked at all. One of the things i point out, if you look at Janet Yellens favorite labor market indicator, the labor Market Conditions index, today at a reading of about 4. 5, that number is high enough that in the past the fed funds rate was a lot, lot higher. Even average Hourly Earnings averaged close to 2. 6 even though wages are lower, thats where theyre going, not where theyve been in the past and we need to focus on and policy policymakers do the same thing. Youre in the faith group in terms of its going to happen. Thanks for being here this afternoon. 50 minutes to go to the close. Dow is up 228. Trying to reclaim that 17,800 mark. The nasdaq adding 55 points. Coming up, u. S. Crude Oil Prices Hit a sixyear low but gasoline prices arent anywhere near the lows. Why the disconnect . Well get some answers plus the pros will weigh in on the top five reasons oil could go even lower. That story burning up cnbc. Pro. Check it out during this break. Later lifts ceo speaks with us exclusively. Lots to discuss including a couple lawsuits that could up end the Business Model for all ride sharing companies. Dont go anywhere. Were back in two. Hey, girl. Is it crazy that your soccer trophy is talking to you right now . It kinda is. Its as crazy as you not rolling over your old 401k. Cue the horns. Just harness the confidence it took you to win me and call td ameritrades rollover consultants. Theyll help with the hassle by guiding you through the whole process step by step. And theyll even call your old provider. Its easy. Even she could do it. Whatever, janet. For all the confidence you need td ameritrade. You got this. Rally day on wall street. The do you sitting near the highs of the session with gain of 230 points. Up 1. 3 precisely the amount the s p is up right now. The nasdaq up 55. Where is the strength . Its pretty much across the board. One sector in the s p is negative today interestingly. This is not a day you want to sit out a rally. The materials sector is down today. Health care jumping back into the pole position. It had been the one lead sog far today until things got more volatile. Up 2 . Russian president Vladimir Putin finally making a public appearance laughing off gossip about his tenday absence from the public eye. Among the rumors making the rounds, he fell ill, became a father even that he had died. Wed heard all of them. Jeff has the latest for us. The president s appearance at a meeting with the president of kurdistan has put pay to all the wild speculation about coups in the kremlin. President putin seemed in reg relatively good spirits and brushed aside questions about his absence by suggesting there will always be gossip and wouldnt the world be a dull place or a boring place without that . A couple other developments though over the last 48 hours that its worth mentioning. One, the Northern Fleet is going on military maneuvers with the mobilization of 40,000 troops. The other, that the president said in a documentary aired over the weekend that he would have considered Going Nuclear over crimea. Just one thing to bear in mind when it comes to how the markets have traded around this story, the Falling Oil Price rather than speculation over the president s health has done more damage. Back to you. Lets dig a little deeper into putins palace intrigue. These fast days cast a bright light on how centralize the russias power structure is. Theres no real Succession Plan if something happened to him. Our own Steve Liesman spent part of his career reporting in russia, he lived there. John busse is also here. I just asked you what was that all about, Steve Liesman . Kelly and i last thursday were dealing with all these rumors about him. We didnt say anything on the air but we were hearing them constantly and then it became a news story over the weekend. What was going on . I think the obvious answer is geoff got to moscow and found putin. This is about his third or fourth absence, and there was another leader stalin who used to disappear as well. You dont know if its some kind of depression or Something Like that, but what it did underscore is what you said at the top, its about the instability surrounding succession in russia. Its the reason why investing in countries without that kind of Succession Plan or democracy, so to speak, are not necessarily good bets. You can have a lot of volatility around that kind of thing. John whats your read of his public absence and now unusual was it . It was odd. Steve is right, hes done this before. He did it at the beginning of his presidency not in more recent years. Yeltsin used to do this when he got drunk, he would just disappear for several hours. He would stay on his plane or disappear for a day or so. I dont see how putin comes out of this without seeming somehow weaker because there is no explanation for it. What was it was it an illness . Was it an internal power struggle . Was it a wag the dog situation where he was trying to take attention off of the economic problems of the country the war in ukraine . Was it stress . Was it depression . Was it related to the nemtsov assassination . He comes back and the next news item we have is the 40,000 troops exercises. Its a bit like youre right, that hes seen as weaker so what does he do in response to that . He orders a massive troop exercise in response to show his strength here. Thats a little worrisome. I think thats right. And remember this is in tandem with a lot of other exercises. Sending bombers near to british air space. Theres a lot of kind of nationalist feelings. Hes a popular figure in russia and he keeps squeezing that. He keeps squeezing the power of russia message as a way to maintain his influence in the country. Steve, what about johns idea that it had something to do with the assassination of nemtsov. Hes one of the real dissidents in russia against putin. Could the intrigue have something to do that . I did know him better than any russian official i knew. We took a few trips back to his home area together on the plane and then i followed him around back there and he was a real reformer, a real democrat and, look, i dont know what happened there. Theres a lot of suspicion as to what happened, but i think that whoever may have ordered the assassination of nemtsov may have miscalculated. When you hear about the demonstrations on the street this could be a real challenge to putin here. Do you agree, john . Just to underscore what steve is saying and he says it with authority. Remember, he won a pulitzer for the journal during his days in russia covering russia. With john as my editor i might point out. I just dont see how you can be the macho putin, riding barechested on the horse, and then disappear for ten days because you need a spa treatment for stress relief or something and come out of that without making any Public Comment to explain it. Im not sure how that comports. How that works, how you can pull it off. Gee doesnt need to make any stinking comment. Hes the Supreme Leader of russia and thats the way it is. Its very much a czar very much a step back from the time i was there when it was at least a hope or some threat of hope there could be some progress in reform in russia. And putin represents a dead end in that regard and thats a real serious problem for russia. Picking up that point, he may also have played it exactly as steve just said and, you know, absence makes the heart grow fonder. Maybe he did it as a way of shoring up support domestically. People love him. If youre not in the public eye, they wonder about you and you come back triumphantly. As steve pointed out, the speculation about what happened is more than a parlor game because people are choosing to invest in russia or not right now. Should this episode give those investors pause do you think . Well i think so. And i would agree with steve on this, its a broader feeling of instability in russia the economic sanctions, the low price of oil. There is a greater possibility for a goof with all of these military maneuvers and testing air space. Theres just a greater chance of a mistake happening unintentionally. Well leave it there. Thank you both. Reunited steve lessand john. Have lunch together or something. Heading to the close. About 38 minutes in the trading session with the dow up 212 points. Its been a rally day today even with Oil Prices Hitting a sixyear low. Equityingsies have gone higher and even the Energy Sector in equities has moved higher despite the decline in oil today. Up next, talk about a contrarian view. A wall street firm downgrading disney. Speaking of witchhich disney shares up over the last six months. If youre running a business legalzoom has your back. Over the last 10 years weve helped one million Business Owners get started. Visit legalzoom today for the legal help you need to start and run your business. Legalzoom. Legal help is here. Welcome back. Maybe its the fact that the u. S. Data misses the dollar moves down a bit, and suddenly stocks pop. Im not sure how encouraging that means this 214point rally is for the dow but thats what we have is a sea of green. All the major indexes popping higher. Only two components are even negative and thats dupont and intel. Intel with that disappointing Earnings Report and dupont in the midst of a proxy battle. Dominic chu is keeping an eye on movers for us. A ilot of action here today. Lets look at tesla. They moved higher throughout the trading day as you can see right there. The new Jersey State Legislature has passed a bill allowing tesla to sell cars directly to consumers. The bill requires the signature of Chris Christie to make it law. The Governors Office said they will review the bill through the normal process which means he has 45 days from act. Then theres netflix, one of the worst performers in the s p 500 after analysts cut the stock to a sell rating. They cited increasing competition. Last week netflix backed away from a bidding war over rights to stream seinfeld reruns. And a look at disney. They were supposed to be lower. A downgrade by btig. They say the stock is a neutral rated stock. Noting there are robust expectations over the next couple years with little margin for error. Back over to you guys. Thank you very much dominick. And speaking of movers disney shares having a huge run up in the past year over 30 in that time period. Has the stock run its course . Good oldfashioned strong brawl on disney today for a magical brawl we have robert luna. Hes our bull on this. And David Trainor from new constructs is our bear. David, its unamerican to be bearish on disney i thought. You know i realize that. Its still a Great Company its just not the best stock right now. Id never say anything bad about disney as a business. Too expensive . Its priced for perfection. The valuation implies the company is going to grow profitings and revenues at over 6. 5 for 40 years. Id say thats a pretty good run. We live in a world where theres a lot more competition and they can only recycle star wars and avengers for so long. I think they have done a great job. The pipeline looks good and the stock be aaccurately reflects everything. What do you think, robert . Its 5 5. 50 in earnings. Its certainly not cheap. I mean if you look at next years earnings i think the stock easily can hit above 6 a share. If you look at the historical multiple on the stock it puts disney at 120 to 125. I get the downgrade to neutral. Theyre not saying sell. This is the first time honestly in the last three years my 12month target hasnt exceeded 20 . Were looking at a 14 to 15 upside over 12 months. If you look at the s p, if youre getting ready to sell disney, you might as well be selling the whole market. Its a best in breed company. They have a robust pipeline. This year theyre putting the 60th anniversary at disney parks in california. They have lucas coming up in december. Lets not forget shanghai is opening january, february of next year. So theres a lot of good things about disney and even at the Shareholder Meeting they announced a frozen part two so i dont think its time to let this one go. What about that david . Bob iger is celebrating his tenth anniversary as ceo. We agree hes done a masterful job of assembling these different parts and pieces in the pipeline that you acknowledge is pretty strong right now. Dont you think hes got Something Else up his sleeve at this point . You know i think the point that, look, if youre looking at disney and youre thinking of sell there, you might want to think about selling the whole market. Theres a fair point to that, right . I mean the idea that its fully valued and most people believe the market is fully valued. When it comes to picking stocks if youre going to put your money into something, put it into something thats attractively valued something cheap, not something thats fully valued. I think thats the distirntionnction here. You could argue espn weve got a bunch of things happening with the Television Business changing, theme parks, every time measles comes up, people get a little scared off. There are perhaps some of these concerns that could cloud the stock for a time. Yeah i mean absolutely short term you could see a 5 10 pullback. Thats an opportunity. I was at disneyland saturday. It was packed. Measles wasnt an issue. Time and time again, people have had a bearish case on disney for the last 2 1 2, 3 years every time it gets to these valuations. I would stay with the stock. Gentlemen, thank you both. Appreciate it very much. Robert luna and david trainer. I think back my mentor in this business was the great tom schneider. Back at the crash of 1987 he told me that the day of the crash in 1987 he picked up the phone and called his broker and said buy disney because if they take mickey mouse down were all in trouble at this point. So he made a good call as a matter of fact, tom did. The profession has changed a bit since then. Time for a Business News update. Here is sue herera. And here is whats happening this hour. The u. S. Said it would be ready to increase the cost to russia if it fails to comply with the terms of a ceasefire agreement with ukraine. Treasury secretary jack lew in a meeting with ukraines finance minister suggesting further economic sanctions might be in place. The backlash widening against the italian fashion duo behind dolce gabbana. The pair championed traditional families and said dolce described children gorn to gay couples as synthetic. About 1 million taxpayers are not claiming money that is rightfully theirs. Half of the potential refunds are worth about 700 or more and are likely owed to lower income earners. And the city of miami beach is providing sunscreen for free. The city unveiled the Public Health project as a way of getting people to combat skin cancer saying beachgoers make the mistake of applying sunscreen in the morning and not reapplying it throughout the day. That is your cnbc news jub date this hour. Back to you. I personally cant wait until it gets warm enough to where we need to use sunscreen. Do you have good sunscreen technique, bill . Yeah, put it on. Are there different techniques . Sue, what is your technique . It means you have to apply it in the morning, you have to let it set and dry, and then every few hours you have to reapply it and you have to make sure you get full coverage bill. This is why i avoid the beach. Too much work. All those helpful hints from closing bell. Thank you, sue. 30 minutes to go. Dow is up 225. Again a strong session here. Even gold though moving a little bit higher. Some odd moves. The vix is ever so slightly lower. The s p is up 26. The thatnasdaq up 55. Gasoline prices 40 cents higher than it was two months ago. We got a real disconnect going on. Well look at that coming up. Later, lifts ceo is spoke speaking with us exclusively. Were back in two. 23 minutes left in the trading day. The dow is up 218 points and the s p is pulling a little higher, up 26 right now with the nasdaq up 54. We want to show you the heat map of all 500 components of the s p 500 index. I dont know, if you can, go upper left. Just for fun lets see what the best performing s p 500 component is. Hopefully we will know. We have to go far upper left there. It is there we go. Another day in which the health care names are outperforming. And amgen and regeneron and humana. A lot of them thank you. Edwards life science is leading the pack. Breaking news on hbo right now. Julia boorstin in los angeles with details. Julia . Thanks so much. Im in austin at south by southwest but this news is all about hbo and cablevision. Hbo and cablevision announcing that cablevisions optimum Online Internet service will be the first Internet Service to package together hbo now, the new over the Top Streaming Service that hbo recently announced would be launching in april with apple. Now, apple has the exclusive streaming rights to hbo now, but when it comes to the regular cable and satellite tv providers that are already distributing hbo, cablevision is the first to announce that it will be bundling that Standalone Service with its Internet Service. So you no longer have to pay for a whole tv package to cablevision if you want to watch hbo. You could pay for high Speed Broadband and add on hbo to that. Were waiting for details on the launch date for hbo now via cablevision as well as the cost but i would expect it to launch in april ahead of game of thrones on april 12th on hbo. Guys . I would think yulia,oull julia, thank you. Thats a safe bet. Julia boorstin at the south by southwest. Well be hearing from the lift ceo next hour. Now though lets send it over to meg at the nasdaq for a quick market flash. More good news in the health care space. Were looking at pharma psych licks. A phase three study of the companys drug was stopped early because it met its goals extending life in patients with cancer. Now, analysts tell me these positive results were pretty much expected. This drug is already on the market but it does shed light on how well the drug does in combination with others. Now, of course remember pharmacyclics agreed to be acquired so a little bit of a boon to abvi as well. Thank you very much meg. Health care continues to be the big story today even aside from those findings. Crude oil also the big story. Sixyear low. Bertha coombs tracking the action over at the nymex for us. Hi bertha. If youre going to be watching crude this week you might want to fasten your seat belt. Its likely to be a bumpy ride. Today we had brent crude options expiring, and at one point brent was down about 3 on the session, got a little bit higher after the session expired. You can expect to see the same volatility tomorrow with wti nymex crude. Those options expire tomorrow. Of course big issue for wti nymex is the fact we are just producing so much more oil. Were down to 2009 prices but we are producing twice as much oil here in the u. S. As we were six years ago following the financial crisis. One of the things thats going to be interesting to watch as we get towards week end, were going to start trading the may contract, a week from today. You take a look at that crude curve and were still very much in contango. Next months prices still much higher than this months. Back to you. Bertha thank you very much. So if oil prices are at lows shouldnt gasoline prices be at least less expensive than they were a couple months ago . Thats not whats happening. Back on january 26th the weekly average price of gasoline hit its lowest recent levels. The National Average was 20 2. 04. Crude oil was at 45. Today the National Average of gasoline is up to 2. 42. 40 cents higher, yet crude oil settling at 2 lower than it was in january. We realize our gasoline is a lot based on brent north sea crude in london but yet Gasoline Oil Prices all over have been going lower and gasoline is going up here. Thats exactly right. Of course, we want to know what is going on. For more were charged by carl and chris. Welcome to you both. This is a little bit of an educational experience guys for us here. Carl the fact that gasoline price is tied to brent more than wti, talk to us a little bit about what is going to be the next driver for gasoline prices then. The big thing here is why were building so many crude stocks is refineries arent running. Weve seen them drop by a Million Barrels a day in late january and theyre still not back up yet. The less theyre producing, the less gasoline we have but demand keeps going higher. Chris, you were the one that told us not too long ago that it would take a while for the guys to stop pumping oil in this country. We would probably not see it slow down until june of this year. Thats exactly whats happening here. When do we finally see a slowdown, if at all . You know i think were going to see a production coming down because rigs are laying down bill and kelly. We know that to be a fact. The decline in the wells are setting in. It will take some time. I said six months at least may, june. Were still going to see them but right now we have a huge global glut of oil inventories. Cushing in oklahoma is nearly twothirds full. Were seeing production remaining constant. I think the price of oulg, i said it before will come back up before it can find a floor to stabilize and come back up. Its what were seeing happen right now. Again, i dont think its going to go to 20 bucks. But we might definitely could test 40 in the very near term and if it goes through 40, it might even test 30. Things have got to change for supply and demand. China is slowing down on their spr. Libya has doubled their production in the last two weeks to 500,000 barrels. Iran, the talks of sanctions coming off, a lot of things in the market creating a bearish environment for oil. Carl a simple question. If wti and some extent brent have been moving lower lately, does that mean gasoline prices are going back down even though typically they would go up this time of year . No well see them go back up. The issue here is still supply and theres a lot more demand. When you look teb economics, were looking at a u. S. Government or u. S. Unemployment down to 5. 5 . Weve added 3 million jobs. Were looking to add another 3 million and gdp expected to be at 3 . Theres a lot more people on the road and that will cause the demand to go higher and tighter gasoline supplies. Oh dear. Were going to watch wti go lower and lower and were going to be paying more and more for gasoline. I hate that. Thank you, guys. Appreciate it very much. Thank you. The vagaries of the markets. What . Over here . Wow. Meanwhile its for cnbc pro. Over here on cnbc pro theres a great story about why there are five reasons that oil will keep moving lower. You can go to online to cnbc pro on cnbc. Com and check it out. Extra emphasis on that delivery. There you go. 15 minutes to go. Dow is up 218. S p is up 26 and the nasdaq having a strong session today as well. Pretty much all sectors in the green except for materials. Health care driving a lot of action today. Speculation that maybe the fed will react to some weaker Industrial Production numbers today but were still not seeing as you just heard the weakness in Oil Production just yet. If you have ever driven for lift or uber listen up. This is important. Lifts ceo will be speaking with kelly in an interview you will not see anywhere else on television today. A lot to talk about, including those two lawsuits out in San Francisco that dramatically threaten this companys Business Model. Stay tuned for that. Ent always obvious. Sometimes they just drop in. 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Liberty mutual insurance. Welcome back. Heading toward the close now. Only 12 minutes to go in a strong session. Looking to see if markets can hold their gains and the nasdaq keep climbing back to the 5,000 mark. Arthur cashin just walked by and signaled the imbalance is to the buy side. Bob pisani is here clocking the action on the floor for us. Usually when oil tanks, stocks have followed suit. Thats not the case today. Why do you think . Also on days like today when we get the euro up and dollar down you would think u. S. Might be up and europe might be down but thats not the case. Severing virtually up today. I think its significant with oil hitting a new low. Take a look at the s p 500. Were at the highs for the day. Three to two advancing to declining. Pretty good overall. Not huge volume but the big story is oil. You mentioned that from kelly there. Exxon went positive overall. Very early on. Oil was below 43 before noon. It did turn around and i think that was a factor but this is an outperformance some people are arguing oil stocks are oversold. Look at the xop. Im waiting for it to go positive right now. That was to the downside just before noon. Dow movers defensive names, united help travelers, Procter Gamble moving but still positive. And all the yields on treasuries are to the downside. We have a weak dollar and i think expectations of fed even if they remove that patient statement, janet yellen will be the antidrama queen on wednesday and keep everything calm. Back to you. If they dont follow suit with expectations now, it could be much more interesting than that. Thank you, bob. That would be bob. Ten minutes to go. A mental block. The dow is up 220. S p is 26. Nasdaq 27. An up day on wall street but volatility could play tricks on the markets the final minutes of trade as we go into tomorrow. It is turnaround tuesday possibly. Well be back in a moment. 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Down big one day, up big the next day and it just keeps repeating itself. Whats going on here do you think . Certainly a lot of volatility. We recovered the losses from last week. We think theres a great opportunity now to rebalance portfolios. Its a good time to go from large caps in the u. S. To small caps. A Good Opportunity to start allocating away from the u. S. Markets, very fully priced. A lot of opportunities in International Markets but be selective. Any wonder were seeing statistics that say people are taking money out of equity funds and putting them into bond funds. They really should be. The fed is going to tighten and we know the fed is saying they have to tighten for inflation but the main reason is they have to brick this bubble. A good example is the market is so overdone whats bubbling . The bubble is the nasdaq being above the 52week average for the longest time in history, 116 weeks in a row. The last time it had a correction was after the president ial election. I think the fed knows it. They have to try to brick it. The best way to do it is with rhetoric. Jaw boning the bubble. Well see if we can keep this 200plus point gain. After the bell, what is this picture of and why are huge funds forking over millions for companies that take these images . Well have the answer to that coming up in a moment. Youre watching cnbc, first in business worldwide. T predict the market. But at t. Rowe price weve helped guide our clients through good times and bad. Our experienced investment professionals are one reason over 85 of our mutual funds beat their 10year lipper averages. So in a variety of markets we can help you feel confident. Request a prospectus or summary prospectus with Investment Information risks, fees and expenses to read and consider carefully before investing. Call us or your advisor. T. Rowe price. Invest with confidence. [ male announcer ] legalzoom has helped start over 1 million businesses. If you have a business idea, we have a personalized legal solution thats right for you. With easy stepbystep guidance, were here to help you turn your dream into a reality. Start your Business Today with legalzoom. Help an oil company overcome minus 47 degree temps, 5 foot ice, and 16 foot waves, to safely keep crude oil flowing 365 days a year. When emerson takes up the challenge its never been done before simply becomes consider it solved. Emerson. Inside two minutes. Were just going to keep adding to this chart. Weve been doing it for a couple weeks. This is the dow going back to the beginning of the month of march, and weve just had these wild swings of three digits or more on the dow. Not more but at least 100 points, maybe even 200 points. When all is said and done for the month so far were down just 0. 89 . Today a gain of 1. 25 . Whats interesting about today is despite the rally in equities, weve had oil move appreciably lower. Wti moving to that sixyear low going back to march of 2009 briefly near the open and came back but still were at 43. 85 down 2. 2 . Michael, what do you make of that . You see a bubble forming in a lot of equities but what about Energy Stocks or things like that that have been beaten down so much . The thing about oil, its supposed to be having this positive economic impact, and its not. You look at like the city economic surprise index, it just reached the lowest level since 2012 and it should be the opposite with oil declining. I like to say when people say it doesnt matter. Imagine if it was up 50 last year. To me this is a big issue. Its a sign of a lack of global demand. Yeah theres supply issues but the economy should be doing better and its not. Bruno, if the fed signals its going to excuse me sir. If the fed signals on wednesday that its going to raise Interest Rates, will that be good or bad for u. S. Equities . Thats generally a good sign for the market that the economy is strength being. Its good for the economy but is it good for equities . It will be something that the market in some ways has anticipated already. We think equitying are fairly overpriced. Maybe a good time to move to International Markets. International he says. Thank you, both. Big rally day but we know whats been happening every other day. What will happen tomorrow . Lets talk about it coming up now on the second hour of the closing bell with kelly evans. See you tomorrow, kel. Thank you, bill. Welcome to the closing bell, everybody. Im kelly evans. What a way to kick off the week. It looks like st. Patricks day early because its a sea of green on wall street. The dow going out with a gain of 225. Better than 1 across the board for the major indexes. The s p up 28 to 2,080. Thats roughly the closing level today. The nasdaq adding 57 to 4,929. Back within shooting distance of 5,000. Lets bring in todays panel and talk about what this means, perhaps about what the fed might do this week and where we will take that european trip. Bill blan ka toe is here and kayla tausche. We have fast money trader tim seymour and dan greenhouse. Phil ill let you kick things off as a soccer pun. I think its exciting. If you look at the data every time theres a chance to buy stocks cheap, money comes into the market. You look at this year, equity flows are up significantly, bond flows are not. I think theres a lot better data than the market is being given credit for. A lot better data . Obviously theres a lot of anticipation of what the fed is going to do on wednesday. Weve had some volatility lately. We still have the problem that American Companies are essentially importing disinflationary pressures on one hand. The labor market is starting to tighten. Theres worries unit labor cost especially if productivity growth remabs so weak will start to decline. It shakes out over time but this is the only time of year we ever talk about productivity. When march madness brackets come out, u. S. Workers lose all their productivity. The longer this goes on the less amount of wage growth the fed can tolerate before it starts to feed into price inflation, but were nowhere near needing to worry about that. We talked so much about the lack of middle class strength. Its a political point now. Every time weve seen the labor market get tight, wages go up. And thats where were at. So were a consumer based economy. You think its going to happen. Its happening already. If you look inside yearoveryear, you have total cash earnings up over 5 . Longer work weeks, longer hours more money coming in. You couple that with Lower Energy Costs a stronger dollar means you can buy things more cheaply. I dont see why theres so much negativity. In the early stage i think the labor market has to tighten. If there is not negativity in the labor market thats pretty much the only place where data is concerned that people are saying its positive. Our jobs numbers for the last three to six months have been exceedingly positive but every single piece of data otherwise, especially since the start of the year has been extremely soft especially today. Industrial production and manufacturing both coming in below expectations and january getting revised even further down as well. Theres just not a lot to like. Its a great point. This is what cardiff was saying. Dan, the production data not great, Home Builders all of that. Are you going to dismiss it for some reason or is there a more troubling reason. First quarter gdp may be pretty weak again . Listen the First Quarter gdp has been the weakest in a given year in Something Like three of the recoverys five years and it looks like 2015 hopefully will probably be that again. As always, we expect an acceleration from here. That said i sort of with all due respect to phil i disagree i dont think the market is not giving credit to better data. I think kayla is right on. Other than the jobs market particularly the payrolls number and jobless claims virtually every data point weve seen for the last what seems like weeks has missed expectations and theres really no denying that the data is not coming in the way people thought that it would. But let me jump in on your point. My point about better data is yearoveryear yearoveryear, Sales Numbers are still up. Yearoveryear, unemployment numbers are improving. Yearoveryear wages are improving. The short term imbalance, we had a really rough winter. They had nine feet of snow in boston. That has an impact on the short term. You had an issue on the west coast ports. Those are temporary imbalances. If you look at retail sales, they were weak before february they were weak in december. Weak relative to expectations in december and january. But we had a fabulous number in november on online sales, we had a weaker number in early december but year over year theyre still up. Where do you want to slice and mix the data. Year over year rather the polar vortex last year. Compare it to the year we had last year. Theres a difference between having increases yearoveryear and month over month in some of the data points and having enough of a gain to actually have the market be able to sustain a rate hike on the argument that the economy is improving that much. Tim seymour, jump in here and give us the perspective in terms of todays moves. Is this people saying the data missed again and the dollar is weaker and so the fed is going to have to be a little more cautious . I think the fed has to be cautious and its very difficult to for me to look at the jobs numbers. I fall probably somewhere in the middle. I think the labor market is better than people give it credit but i dont think its enough. The fed is obviously going to be putting language out there that gives them a lot more flexibility whether its taking out patience. Weve all opined over this but if you look at the market the market is clearly struggling with two things with the strength of the dollar and the impact on s p earnings. Theres no question to me theres a major impact and, therefore, youre also seeing a decouple from the u. S. Stock market with the u. S. Dollar. Historically we would have seen Dollar Strength translating into better flows to the market at least flows into this market and theyre very much the opposite. 47 billion out, 36 billion into europe. Europe to me is really the story and if you look at dividend yields and earnings momentum i think not just germany which is broken out to fresh highs today but look at spain and italy. I think people are not paying attention to europe. Cardiff . Its something not obvious to look for on wednesday is to whether or not the feds estimate for the natural rate of unemployment starts to come down. The Unemployment Rate is now at the high end of the fed central ten dindonency for those estimates. Thats hard to reconcile with the fact weve had slow wage and price growth. They need to lower estimates or explain why theyre not doing it. Something more forceful and articulate. Phil, are you buying europe to tims point . I would. I think from a valuation standpoint you have 18 months and two years to capitalize whats going on there. Still . Since 2013 the s p 500 is up over 110 . Europe is only up 43 . You have a huge spread there. Its cheaper there. I dont know if its permanent. They have longterm structural issues. One thing i would say to his point, and ill agree with you here, where i get a little concerned about the Federal Reserve, think about this context. The dollar is strong, and im going to argue the fed is already tightened by 2 because of the strength of the dollar but ill add to that. The rest of the globe is weakening and we will go through a tightening cycle when were not totally healed yet. Theres Something Else to watch out for. Something we saw in the 2000s. In the next couple of years, net issuance of sovereign Debt Securities available to the public are set to turn negative set to turn seriously negative so global issuance is going to shrink. What if we start to hike rates but on the long end nothing happens . It messes with our entire policy apparatus. Bank stocks and can i jump in . As always i think cardiff is spot on. Theres this focus on the word patient and for our viewers out there that are simply looking to see whether this word is in or out, or position is its out but theyre missing a much larger story here. And i want to associate myself in cardiffs paper the ft, they survey a bunch of people on the street and ask us what questions should be asked of janet yellen and bank of america asked exactly the right question, which is you have a couple fed pressidents out there saying were not going to make the same mistakes we made in the last decade. Meaning if the 10year doesnt rise yufer were going to act. Over the next few years if the 10year doesnt react, the fed might act which means a much stronger pace of tightening than almost anybody is talking about. Thats really interesting. I dont really follow dan, so just thinking back through this for a second. The point is that if the fed raises rates, you know, shortterm rates but the long end doesnt go anywhere, then what . Think about this. In the wake of the crisis what we thought were quote, unquote safe assets a lot of them are not really safe anymore. Youre left with bunds yielding 26 basis points. Treasuries and to some degree youre left with jgbs. The pool of safe assets has gotten smaller, smaller. Yet the people wanting to buy them Central Banks, my mom, is larger. I dont understand why you think that means the fed will be more aggressive in terms of raising rates. If you blame the Housing Market during the last cycle on the fact that Mortgage Rates didnt respond they were too low. I have a question. What about the disinflationary forces of the world . So look at oil today. You have wti that presses and probes to new lows. You cant tell me in some sense oil is dragging down the long end of the curve, and youre seeing disinflationary forces and thats out of the control of the fed. Thats to be fair. I think the arguments in favor of disinflation are considerably stronger but this is a separate argument from whether or not the fed should sit at zero even with the Unemployment Rate at the top end of the central tendency. In that regard youre basically where youre supposed to be. So im not sure that the fed is going to look at an s p 500, a stock market doing what its doing a labor market doing what its doing, and sit on its hands. Thats the position its taking. Fascinating. Were going to leave it there but thank you. A lot to think about. Tim seymour, appreciate it. Dan, thank you so much. Much more coming up with tim and the fast money crew at 5 00. They will be talking to the ceo of a solar company. Its been a year since flash boys raised flews and in a new edition lewis is doubling down on the claim that the stock market is rigged. But bart chilton here to dispute that. Chilton now works with a high speed trading organization. Thats coming up. Plus is uber getting some company in the fast lane . Lyft raising more than a half Million Dollars from investors. Logan green telling us about this new cash infusion and there he has any plans to go public. Plus how one vital lawsuit has lyft and uber becoming unlikely allies. Dont go anywhere. And a gentle wavelike motion. Ahhh ahhhhhh. Liberate your spine. Ahhhahhhhhh. Aflac and reach, toes blossoming. Not that great at yoga. Yeah, but when i slipped a disk he paid my claim before i knew it. Ahh so he had your back . Yep. In just one day, we approve and pay. One day pay, only from aflac. [duck snoring] nearly a year after its launch Michael Lewis controversial flash boys taking wall street by storm again. The new paper back release will feature an afterword highlighting the one point he feels needs to be revisited, namely that the stock market is rigged. The big banks and the exchanges have a clear responsibility to protect investors, to handle investor stock market orders in the best possible way. Instead, they have been paid to compromise investors interests while pretending to guard those interests. Joining us is bart chilton. Bart, great to have you back with us. His point, the point Michael Lewis thinks has been lost is the stock market is rigged. Do you flat out think hes wrong . Not only do i think hes wrong, kelly, i think its been irresponsible. Look its a nice narrative, but at the end of the day its not based upon the facts. Its been debunked by the chair of the s. E. C. Mary jo white, and countless academics, and if it were the case that the markets are rigged people like you who look at this every single day would be screaming bloody murder about it. The bottom line is hfts have contributed to markets that are today cheaper, faster and safer than ever before for average investors. Cardiff, bringing in the panel here bart. I dont know if thats true or not but to be the documentation shows it. All the studies show it. Bank of england, it was covered on cnbc two weeks ago, show it is the case. But what im saying to be fair to lewis and the point he makes in this afterword pretty clearly is that hes not criticizing individual High Frequency traders or computerized or High Frequency trading in general. He acknowledged it includes multiple strategies. Whats hes criticizing the opacity and the lunacy of the fragmented Market Structure we have right now and it seems to me like in the absence of a broader and a more fundamental overhaul of the kind you yourself have pushed for in the past we have to scrutinize these guys more carefully. And if the regulators cant do it, then i guess my question is this, isnt it good that a guy like michael, whose settlement with the cftc you once yourself criticized as being too lenient back in your days when you were still calling these guys cheetahs that had to be caged, isnt it a good thing Law Enforcement is getting involved handing out criminal indictments, that regulateors are taking a more careful look at these guys . Whats wrong with that if we dont get the more fundamental overhaul that a lot of us would prefer . Bart . I absolutely agree with you. I think having 50 60 different places to trade with all the dark pools, i agree with you. And thats why the committee, the Advisory Committee that mary jo white, the s. E. C. Chair again has set up to look at this i think is important. But the bottom line is hfts are part of our markets today, and the exchange the flash boy bookboy book looks at are mythological. Im pleased that the guys i have started working with are calling for more simple market was more transparency. Finally, i wish that iex would show what the volume of trades are that are contributed by hfts. Thats the transparency id like. Weve talked to brad and hes never hit the fact that hft is involved. Theyre just trying to level the playing felgd, if you will between hfts and everybody else executing trades. Phil, you run an Asset Management firm. It was the people like you who were frustrated with getting front run by some High Frequency trading that led to the launch of exchanges like iex. Do you think you have lost money or the markets is rigged against you . Two ways to look at you. If your size is relevant where you will go outside a dark pool its absolutely an issue. Warren buffett said its like letting rats in the grain house and i agree with him. If theres not supervision, theres a problem. Especially if we dont know about it. My issue was it was nondisclosed. Weve changed our philosophy. We look more into our dark pool. We have a great partner in fidelity. Wed rather not go out of our network until we have confidence its resolved. We general are very good about using who were going to use to trade. Thats how we beat it but its something we are concerned about. A guy on the street which may be investing with a firm like yours, but do they need to know as Michael Lewis is asserting that the stock market is rigged. Thats what i didnt love. Michael made it almost a broad brush. I get it. Hes writing a book. At the end of the day, the individual investor is not affected by this. Thats where the story should be almost bifurcated. Theres an institutional issue but its not a retail issue, especially when youre at fidelity or schwab or whatever and youre trading inside their firm. Its not relevant and i think that message is not as strong or clear as it could have been. Kayla . Phil mentions messaging which i want to ask bart about. Even though some of the data bart, as you mentioned, does go against some of the claims in Michael Lewis book we could debate this for decades at this point but the fact that after the book came out virtue financial had to delay its ppip, now and the fact that iex was a company was able to be created to fill this socalled niche in the market im just wondering like there are Market Forces that are supporting this idea. How can you say there arent . Well look theyre doing is good business. Lots of hfts are trading on iex. My point is not that its an interesting story. I agree. Hes a good author. You know kudos. My favorite Michael Lewis book was the blindside. He had a big blindside. Im to a former regulator. We lookeds a these guys all the time and the Investment Advisers act describes what front running is and it cannot be done by hft traders. So its just a big lie, and i dont mind debating issues but its got to be based upon the facts, guys. All right. But its clear as well theres already been some market response in just the year since that book launched reflecting the concerns across the investment community. Michael lewis has helped drive those if nothing else and, bart we thank you for being here to rebut it. Dont miss Michael Lewis joining power lunch on monday the 23rd right here on cnbc. Were all looking forward to that. Uber and lyft are facing a huge legal battle over whether drivers are employees or independent contractors. Lyfts ceo tells us how a loss in court could impact the startups bottom line and whether they would have to change their Business Models. Also these police in canada would have been better off using lyft than trying to chase down this motorcyclist during a pursuit inside a mall. We have more of this video coming up on the closing bell. When it comes to medicare, everyone talks about what happens when you turn sixtyfive. But, really, its what you do before that counts. See, medicare doesnt cover everything. Only about eighty percent of part b medical costs. The rest is on you. [ male announcer ] consider an aarp Medicare Supplement Insurance Plan insured by unitedhealthcare Insurance Company. Like all standardized Medicare Supplement Insurance Plans it could really save you in outofpocket medical costs. So, call now and request this free decision guide. Discover how an aarp Medicare Supplement plan could go long™ for you. Do you want to choose your doctors . Avoid networks . What about referrals . [ male announcer ] all plans like these let you visit any doctor or hospital that accepts medicare patients, with no networks and virtually no referrals needed. So, call now request your free guide, and explore the range of aarp Medicare Supplement plans. Sixtyfive may get all the attention, but now is a good time to start thinking about how you want things to be. [ male announcer ] go long™. Car sharing upstarts uber and lyft have disrupted the taxi and Transportation Industry but the pair are finding themselves smack in the middle of an oldfashioned labor dispute. There are fears an Adverse Court Ruling can dent the bottom lines of Many Companies beyond uber and lyft. Kate rogers has the details. Driver lawsuits against transportation startups uber and lyft could impact the sharing economy in a major way. The plaintiffs argue theyre misclassified as independent contractors when theyre employees. Two separate judges moved the cases ahead to trial. These are hardly the only companies averaging the recent economy. 53 million 234 the u. S. Are fre lancer. 21 million are independent contractors and 14 million are moonlighting while working other jobs. Startups using similar models including one one, insta cart and task rabbit. A major question is what it may cost both startups if they lose. Employees are eligible for reimbursement for gas and maintenance. The society for Human Resource management estimates Fringe Benefits are things like health insurance, workers camp and more, can cost between 25 and 40 of a workers salary on top of their way. Uber declined to say how many drivers it has in the state. Lyft says it has thousands making damages hard to tabulate. Kate, thank you very much. Kate rogers. We will be speaking with lyfts ceo exclusively next. Also the outrage story of the day. The government paying billions of your tax dollars to dead people. Its an ongoing problem but only now is Congress Starting to look into how to stop this fraud. Talk about that straight ahead. And do you see these pictures . You wont believe how much data theyre generating and how much businesses are willing to pay for them. The ceo of orbital insight joining us coming up on the closing bell. Opportunities arent always obvious. Sometimes they just drop in. Cme group can help you navigate risks and capture opportunities. We enable you to reach Global Markets and drive forward with broader possibilities. Cme group how the world advances. Im almost done. [ male announcer ] now you can pay your bill. Manage your appointments. [ dog barks ]. And check your connection status. Anytime, anywhere. [ dog growls ] oh. So youre protesting . Okay. [ male announcer ] introducing xfinity my account. Available on any device. Welcome back. We begin with sue herera and a news update. Whats going on . Were going to start with whats happening this hour and its a new border graeme between agreement between the u. S. And canada signed by jeh johnson and his canadian counterpart. It is expected to reduce congestion and increase efficiency at the border. It also provides guidelines for officials of both the u. S. And canadian customs. The white house blasting the Republicanled Senate over the delay in holing a confirmation vote for Loretta Lynch to be attorney general. Josh earnest calling the delay unconscionable. Hate the crowds at the airport . Get used to it and there may be more of it. The faa says the number of travelers flying on u. S. Airlines is expected to grow by 50 in the next two decades. More heartache for long suffering new york met fans. Righthanded starter zach wheeler has a torn elbow ligament that will need surgery to repair and that effectively knocks him out for the Upcoming Season which is too bad. Thats the cnbc update for you. A mets fan. Thanks very much and lets send it out to austin where cnbcs Julia Boorstin is live at south by southwest with an exclusive with lyft ceo logan green. Julia . Thanks so much kelly. Logan, thanks for joining us right after you came offstage. Just before the break we were talking about the story about how lyft as well as uber are facing these lawsuits and the threat that you might have to recategorize your employees who are currently independent contractors as employees. What kind of threat does this pose to your business . So i cant comment on any ongoing litigation but what we can talk about is the role that were playing in the sharing economy and how the sharing economy is changing the nature of work. So there are a couple of really interesting stats that we found out about our drivers. The average driver is doing it for about 14 hours a week. And in l. A. We wanted to know, you know, why are they doing it and what other jobs are they looking at . 60 of our drivers in l. A. Work in a creative industry. So they drive lyft for a few hours so they can cover rent and then whenever they get a call from their agent and they need to go on an addition or something comes up they can drop it have complete flexibility, and go take that job and chase their dreams. This idea now that people arent looking for the same type of work all of the time right . Theres this mantra we have that flexibility is the new stability, and as long as you can always find something when you need it thats incredibly valuable. I have taken rides with some of those actors but what happens if you have to start paying them the benefits of employees . Does that make your business unsustainable . So i cant comment on that but, you know, this is creating i think an amazing opportunity and, you know, folks need this type of flexibility. So, you know, some of the lyft drivers are driving for both lyft and uber. Theres nothing about this that is a traditional employment relationship. Great. Kelly, do you want to jump in . Certainly. Thanks very much logan. You guys get to the heart of a question in this new economy, and id just like to know how you would define the difference between an employee and a contractor. So i cant go into the specifics with you now. But theres plenty of case precedent on this and i think the rules are very clear. Do you consider yourself i know logan, you can show up as a lyft driver when people order it, and so just curious again, these terms the way we used to think about peoples functions in a company obviously are pretty fluid these days. Absolutely. So, yeah im a lyft driver myself. Obviously im spending most hours of the day as the lyft ceo, but on the way into work ill flip into driver mode and give a ride or two. You know and i think this type of sharing economy work whether youre doing it for a few hours or just on your way into the office, you know is a whole different word. You know you have air bnb hosts who rent their apartments out a couple weekends a month, sometimes just a night here and there. But its a new world that were entering. Now you just last week announced you raised 530 million. Thats a huge capital rise. What are you going to do with all that money . So the recent investment i think is a huge vote of confidence about the values of the company and the size of the problem were solving. Were trying to overhaul the Transportation Industry and make it possible for people to get around cities without driving their own car. Uber is your much larger competitor though. Youre now valued at 2. 5 billion last i checked uber was valued at 41 billion. Will this money allow you to compete . Will it be enough . Absolutely. Lyft is going after such a large problem. We welcome other people going after this with us. What were trying to accomplish is to make it possible to get around a city without having to own a car. We launched a new service six months ago called lyft line. We will match up two people taking the same trip and have one driver pick them up. Now lyft line is cheaper in San Francisco than owning a car. You can take every trip on lyft line and its less expensive than owning a car in San Francisco because youre not having to pay for parking maintenance, and insurance. And, you know, those are the type of inknow vasesnovations we will continue to pushing until people across the country and across the world get fast convenient enjoyable transportation without having to own a car. Im curious whether you view uber as a friend or a foe in this business and what your relationship with travis is like. Sure. So the two companies are extremely competitive and i think it pushes us to both be better. Ultimately, you know i think ub uber is a good car service but lyft is going after a much bigger problem in trying to make life without a car possible and reinvent the way people get around cities and if uber wants to step into that and help push progress in that direction, we welcome it. But you guys really are going head to head here. Your core businesses are direct competition. You have lyft line, they have uber pool. Will you try to distinguish yourself as a different type of service or are you competing on the same plane . I think weve always made very different moves. The beginning vision of lyft, you know is that we can, you know, create a world where every car on the road can be a lyft driver and when youre taking a trip you can flip into driver mode and give a ride to somebody else. Thats always been the vision. And when we launched 2 1 2 years ago, lyft was a peer to peer service and it still is. Uber was a limo service and they followed us into the peer to peer space as they recognize thats a really incredible opportunity, and similarly they followed us when we launched lyft line, they launched a competing service. Well keep innovating and keep pushing the limits and if they keep following us they keep entering this market, thats fine with us. Were trying to have the largest impact on the world that we can. Great. Julia, thank you so much. Thats our Julia Boorstin with logan green, the ceo of lyft. Enjoy the rest of south by southwest. Im sure well be seeing julia again. Its interesting asking him whether it was a friend or a foe. The word he was clearly choosing there was follower. Drones have been targeted to deliver everything from pizza to books from amazon but images like these are now being high lie digested are being digested. Well explain next. Also it looks like a scene from the Blues Brothers movie. A police chase that led to the inside of a Shopping Mall. Well tell you how it happened and what was resolved later on the closing bell. The closing bell. The closing bell. Being a keen observer of the world has gotten you far but what if you could see more of what you wanted to know . With fidelitys new active trader pro investing platform, the information thats important to you is all in one place, so finding more insight is easier. Its your idea powered by active trader pro. Another way fidelity gives you a more powerful investing experience. Call our specialists today to get up and running. So what can aerial pictures of parking lots oil tankers, and buildings tell us . Apparently a great deal and hedge funds and other firms are paying up big to get their hands on these kinds of images. Orbital insight is one of the companies that gathers a satellite and drone images with the goal of characterizes global socioeconomic trends. Jimmy crawford is the ceo of orbital insight. Welcome. Thank you kelly. Happy to be here. Great to have you because, listen, this is a data driven world. You guys are doing the photo for lack of a better word version of it. How much data can you get out of a satellite image, turn around and sell . So the really exciteing thing about todays world and about whats going on in satellite imagery is more and more satellites are being launched so in some of our applications weve processed as many as a million images of parking lots. We can learn a great deal. And what for example, is most valuable about these images . Well one of the cases weve been looking at is looking at retail traffic, and we can actually track retail traffic in 60 major retailers and see whether or not its up or down compared to past years, and we have enough volume now that we can actually see and thats one of the single most important things for retailers is how much people are coming in the door. Absolutely. Phil . If you think about that imagine being able to get ahead of a trend. Knowing where your demographics is changing to knowing what Shopping Mall we invest quite a bit in real estate. We have an opportunity to know ahead of the curve where the demographics are going. Youd pay up for this information. Absolutely. In fact, jim, i have a question for you. Beyond just the knowing of the trend, i would think from a safety or National Security standpoint, its got to have huge implications as to how it could be applied just beyond a retail mindset. Absolutely. So we have the ability to count. We have the ability to count from images. You could take the same algorithms that we use to count the number of cars in a walmart parking lot and count the number of cars at a Border Crossing or count any sort of vehicles. One of the things we find so excite being this company is the breadth and depth of things we can analyze and really understand about the world at scale. Could it go so far, if you see a house that needs repair of its roof could it be could niche you would target down to an individual or block . How far can you take it . So you can. And you can see. A lot of the imagery is down to the 50 cent meter level. You can tell that maybe a tree has fallen on a house or the Swimming Pool is green, although our company is more interested in largescale trend. Were less interested in telling but your neighbors house and more interested in trying to understand an entire city may be going through a difficult time because a number of houses seem to be in disrepair. The data are still there. Im just wondering how your Company Interact was concerns about privacy because even though you exist for macrotrends, you still have the capability. So how do you work around that . So first of all, the satellite imagery is capped at 20, 30 centimeter resolution so we cant see people. We can count cars. Even when we count cars we cant tell one car from the other. The imagery and the federal limits on imagery put a major barrier to any sort of privacy issues. Furthermore, the way we process the data our entire pipeline the whole reason we exist is to use big data techniques and Artificial Intelligence techniques to understand things as scale because thats where we think the real value is out of this data stream. Jimmy, we have to go. I have a quick question as well. If im a wealthy investor and i can pay up for your information, is there any insider implication about me doing that . If its information that say the general public couldnt get their hands on . No thats a great question. No, this data is considered Public Domain because its the same imagery you could have seen if you had been flying over in an airplane and theres no confidentiality being breached. Its considered Public Domain from an insider trader point of view. Next time im in an airplane i will look a little more closely whats going on. Bring some binoculars. Thank you, jimmy crawford. Now we have a sense of what all those satellites are doing up there. Ceo of orbital insight. A Hedge Fund Manager who warned about the last financial crisis is seeing parallels. That story is topping the hot list on cnbc. Com. Also burgers are the new black. The gourmet burger craze sweeping the nation. Well be talking to smash burger ceo scott crane discussing his new new York City Stores and the brands global expansion. Nice. Well be right back. Financial noise financial noise financial noise welcome back. We begin here with pinterest. Morgan brennan has the details. According to dow jones the social media startup pinterest has raised 367 million. A sum that values the company at 11 billion. The company is also reportedly looking to raise as much as 208 million more and the company is said to be using these funds for international expansion. So again, according to dow jones, pinterest raising 367 million valuing this social media startup at 11 billion. Kelly, back over to you. Wow. Some avid users around here. Thank you, morgan. Americans are living longer and longer and if you believe Social Security, well its really a lot longer. Flawed data says more than 6 million americans older than 100 have active Social Security numbers and thats a sign of rampant fraud. Theres a Senate Hearing focusing on this outrageous story as we speak and john harwood joins us now with details. Hi kelly. Theres certainly the potential for fraud on a fairly widespread scale. This is what the Senate Homeland Security Committee is looking at today. The Inspector General reported that 6. 5 million Social Security numbers are active for people 112 years or older. Its believed there are only 35 people in the entire world who are more than 112 years old. So that tells you that some checks are going out to people who shouldnt be getting them. Also that some numbers are being used by people who should not have those Social Security numbers. What they found was that several thousand Social Security numbers, 66,000 of them were being used to report income which suggests that people are using them to verify their employment. And on the federal e verify system, 3,900 of those numbers were being run through by businesses trying to check the eligibility of people. So were going to see whether or not Congress Takes some significant steps. Its costly to go through a system that in some ways is behind the times in terms of technology to go through and cull out exactly the ones for whom death notices have not been applied to those numbers. But clearly the senate is going to push for that to happen. John is there a sense of what the aggregate number of that this all adds up to in terms of potential fraud . Dont have to in terms of potential fraud . The i. G. Didnt report numbers on the amount of money that was changing hands but the story that the members of the Homeland Security committee are telling has to do with a woman who had been reported dead and someone else was using her Social Security number and she was a dog by people who could not verify her status because of the lack of security around those numbers. Stay right there, john just looking for reaction from the panel here. Phil . 10,000 people retire every single day. Think about the problem at 6. 5 mil now the fraud will explode. Every single day youll have more numbers at the end of the chain because they are not keeping track. I would hope this is one opportunity unlike other programs we have go a private company that specializes in this and farm this out. I would tell them rent borrow or not buy. You have an entire demographic, the bulk of your country is getting older. Tlbl thatincredible that logistical a system that runs the biggest entitlement program. I dont know what the technological impediments are. The Washington Post story pointed out that there are only 35 living people who are above the age of 112. In the world. In the world. Its pretty incredible there are thousands of people who have managed to put in that their bitter date year was in the 1860s to 1890s. Wouldnt you go for 1950 if youre going to try not to catch somebodys attention. John, what do you think most of these cases are . Peoples whose parents or relatives pass and the information is stolen . This is lowhanging fruit. Youre talking about people looking for vulnerable numbers that they can claim and if somebody had died but the death was not reported and, therefore, the number was still active i dont know how people find those numbers but you could sense that somebody, say if youre talking about somebody reported being more than 112 years old their relatives might be dead as well and the more isolated that number is the more vulnerable is. Keep an eye on that Senate Hearing. Red hot stock market has us excited. Alan wasser joins me now. That story is ripping it up for us. A hedge manager said ate scary time for the stock market. We get lots of hedge managers saying a lot of things. Why listen to this one . Its andy ridley. In 2006 he warned there was something funny in the critic markets that was spelling bad trouble and then 2007 and 2008 came along. This time hes saying all the stimulus coming from Central Banks distorting the market again. People are eating that one up. They are also eating up ben whites column for us the politico chief economics correspondent. He wrote a column to us talking about the debt ceiling fight thats looming for us and laying out all the battle lines. If those two stories give you palpations, the third story a couple of new drugs where early tests show low cholesterol drugs and cut the risk of heart attack in half. That has our audience skewed a little bit to heart attack. People are reading that story up and down. Oh, man you guys always have a new phrase for me to ponder. Thank you so much. Much more on cnbc. Com. Fly like an eagle. Remember that song . It may be an under statement in this case. One record breaking bird taking off in dubai, off of their tallest building when closing bell comes right back. under loud music this is the place. Their beard salve is made from sustainable tea tree oil and kale. You, my friend, recognize when a trend has reached critical mass. Yes, when others focus on one thing you see whats coming next. You see opportunity. Thats what a type e does. And so it begins. With e trades investing insights center, you can spot trends before they become trendy. E trade. Opportunity is everywhere. Welcome back. Two pieces of amazing video. First an allege launched into fright yesterday from the atop the worlds tallest building in dubai. Thats with a camera strapped to its back. The high flying bird was able to secure the record for highest errorrd bird fright from a manmade structure. The eagle flew 2700 feet down to its trainers arm who was standing at the base of the building. I love that. Unbelievable. Theres a ton of preparation that went into that. This one different. A motorcycle chase like youve never seen before. Canadian Man Led Police on a chase that led in a Shopping Mall. Security guards chasing after him before he drove back out the front door with security chasing. It looked like a benny hill episode. The motorcycle was eventually recovered by Police Officers but the fugitive still remains at large. Which one are you impressed with . The fact you know benny hill. I dont. He was great. Both are amazing because something fun. 7. 2 billion connected gadgets and in five years 50 billion. Imagine how many people want to pull stunts like this just to become famous. The eagle or motorcycle. Both of them. In early reports apparently it was to raise awareness for eagle conservation efforts. Im not sure the best way to do that is to go the worlds tallest building and drop an allege and strap a camera to it. The freedom conservation is exactly what youre saying a group that supports animal rescue. In fact a lot of training went into this and they had to have 100 different contingency scenarios. Quite a risk. Im looking forward to the day when they can make it like Virtual Reality and see the point of view. Dizzying moment. Like on a roller coaster. Did they catch the dude by the way . I have no idea. Does anybody know if they caught the guy . No. The last scene in the video theres the bike sitting there. Hes the first of many. More guys will try that. Talk about a waste of resources. Two second for final thought. For me the Federal Reserve. All about Federal Reserve. I give everybody one point. Every time the Federal Reserve raises the rates the markets go up within six to nine months afterwards. Fly like an eagle. Fast money as promised coming up in just a few moments. I want to know what kind of camera was strapped on to the bird. That could be a competitor to go pro. A sony camera is what im told. Pretty good picture quality there. Vivid ceo. I want to see the name in more of these articles. They need to work on that. Thanks. Fast money starts right now. Live from the nasdaq markets overlooking new york city typewriter. Traders are tim seymour, pete najarian. Big rally but not for netflix. Its providing top content getting too expensive. Microsofts ceo speaks at the tech conference bun bullish analyst cut its price target. We start off with a rally in stocks a big move to the upside as the dollar showed signs of weakening. Oil prices closing at a six year low and traders are waiting