Transcripts For CNBC Closing Bell 20150417

Exchange as we get right to it steve dudache. Peter Anderson Kelly conley, john kenley and our very own Rick Santelli. What do you think is driving the selloff today . I think its a misunderstanding of this new adjustment in the china markets. Shorting the markets, allowing that to happen kelly, isnt necessarily causing markets to be regulatory in the sense that they will drive prices down. You know shorting doesnt prevent bubbles. And i think everybodys looking at this as a sense that if you introduce shortings to the china marketing with all of a sudden that bubble may burst. If that were the case kelly, look at the u. S. Weve had shorting here for a long, long time. Yet weve still had market bubbles. So i think its a little bit of a misunderstanding. It probably will help price discovery but in general, its just going to make the market more orderly and not necessarily a bearish instrument that most people i think are interpreting this news today. Steve money has been flowing into europe european stocks as well as chinese stocks this year. All those markets up double digits. Is what were seeing today surprising to you or not surprising . Given the big gains weve had and some of the shakiness with the greek situation as well as some of the changes made by the regulators in china overnight . At this point volatility is just the norm. I hate saying new norm and all that, but thats what it does. The markets go up and down on every piece of news. Certainly until things get worked out in europe with greece, youve got to expect well have very volatile days moving forward until we get more clarity. Kelly does that mean then that this is the perfect stock pickers market that everyone was desperate for back when correlations were at one and it seemed everything would move in one direction or the other depending on macro factors . I think were in the midst of a secular bull market with that being said we are going to have some corrections and pullbacks along the way. Thats normal. Weve had sluggish job growth this last quarter and all the Economic Data seems to indicate that weve had a modest slowdown in the economy. So i think with that being said the feds going to need to dig into that information and determine whether this is from the severe winter weve had, the energy drop the westport strikes and if that has any indication, which has caused the slowdown. I really dont see Interest Rates going up well until the end of the year. And i think that the market has already got that priced into the dynamics. So with that being said i think that Retail Investors are going to want to take a balanced approach and have a good Risk Management strategy in place. John earnings have been coming in roughly in line with expectations. Theyve been coming down of course. But at least the estimates for the quarter have stopped. Whats worrying me is revenues are coming in consistently light for most of the companies. I talked about this this morning right across the board. Of course, many of them are blaming this on the dollar. How concerned are you about the Dollar Strength and the continuing impact on not just earnings but on the profitability, on the revenue situation for the Major Companies . There are a lot of builtin concerns for the First Quarter. Weve only heard from 50 for 60 companies. I think its too soon to tell. Next week we hear from 150 companies. Week after that another 200. Two weeks from today, i think well have a better idea if we can get through the next two weeks and just be flat on earnings yearoveryear and guidance for the rest of the year doesnt move i think were in good shape. Some of those impacts are going to fade. The Dollar Strength will fade. The port strike will fade. The the bad weather hopefully will fade. Then we can get into a period where the Economic Data and the earnings are all kind of moving in the same direction and theres no more excuses. I think were close to that but not quite there yet. Rick is the yield on tenyear german debt about to turn negative . And if it does what does that mean for markets . Personally, my opinion is i dont see how the tenyear would dip briefly. Its going to go negative in my opinion. I think its difficult to answer your question. Im not sure how the world is going to react in europe to getting back less than they put in but i do know its going to have an outsize effect here. Its certainly not going to push our rates up. The lower they go a variety of other issues arise, especially at a time when the fed may be offsides to flows regarding their strategy which is long overdue. Its just a real toxic brew. On china, our one guest is absolutely right. Allowing short selling, after the crisis we did all these experiments here. Thats a good thing. But the aspect of the marketplace thats a canary in the coal mine from china to the world is when you tweet financing that affects leverage and equities, thats when things get dicey. Well have our own chapters of that at some point in the future as well. Let me go back kelly, to your point against this backdrop. Investors have to be cautious and defensive. What does that mean . A lot of the traditionally defensive areas of the market are dividend payers and names like that are highly and richly val youd and have been a crowded trade. What kind of defensive portfolio moves do you recommend . Well i think i would look at some very shortterm bonds. I know that the yields are not well but if you keep some on the sidelines in some cash and you can buy on some decent dips and just tiptoe into the market i think thats more of a safe strategy to go into at this point. Because nobody knows what the markets going to do. Theres so much noise out there. Steve, what do you think . One of the things thats amazed me is the investors appetite for energy stocks. I consistently get more comments about when should we be buying energy and at what point . All the major energy names are actually up on the year and outperforming. Nobody seems to notice that. Right. Schlumberger said dont expect a rebound. Traders seem to be enticed and enthralled with energy stocks. Your thoughts on that . I dont think you need to be cute and try to find the right day to get into energy stocks. Oil is not going to zero. Its not going back to 100 a barrel anytime soon. These companies will start making more money than they have or at least whats priced into the stock prices right now. Get after it right now. Buy stocks that are probably at a lower level, something youll probably outpace the overall market and take advantage of it. Back to what rick was saying about Interest Rates in europe if youre looking for an opportunity there, go buy european reits. Take advantage of the fact that banks are paying rates toward mortgages. When theyre paying you money back instead of themyou paying them interest. This market the dow is down 315 points the s p down about 30. A really brutal session. You invoked china immediately to kick off the discussion. How much of this might have to do as weve seen on fridays lately with gears about greece leaving the eurozone, going back to low yields and flight to quality trades were seeing there. Weve seen that before. If youre a psychologist in these markets, which i think pays off these days i would say weve been there before we kind of know that playbook. I dont mean to be glib about that but i think that probably will resolve. I think anytime theres new events introduced into our market where we have to do the calculus of how its going to impact things everybody goes temporarily nuts to figure out if this is a good thing or a bad thing. Right. The greek situation, not to minimalize that thats very important, but we kind of know how that will probably play out. Theres theories about saber rattling, right up until the end of negotiation. While were watching that i think the other impact is just to try to figure out, is it a good thing or a bad thing for Capital Markets whenever theres news such as the china decision today. Rick, isnt it a good thing what were seeing with yields over in europe today . Im not thrilled that german tenyear is about to go negative but peripheral debt should be dramatically higher. Ive never understood why spain keeps dropping. I think were at 1. 4 on the spanish tenyear. Doesnt that make sense that we should start seeing peripheral debt yields move up and, of course the safer debt stable or to the downside. I think we can talk about the ultimate payday or negative payday that should result in equities delinking with fundamentals. The sovereign debt market especially the Southern States in the eurozone this is beyond irrational. These securities rates are much too low. The world has added about 35 trillion in debt since 07. Im telling you, this debt scenario isnt going to end well but its probably not going to happen anytime soon. But i do think a grexit is important. They can figure out how to get this country to form after all these years and all these checks. If it separates out, i think that is a canary in the coal mine for the general notion that the overlay structure of europe isnt going to work when you have a currency too cheap for the biggest economy in the eurozone and everybody else gets shut out. That just is a stencil that is never going to hold up to the test of time. Steve, ill give you the final word here. Since you brought up a trade opportunity in europe do you want to respond to what rick was saying there . I dont think europes going to fall apart. I think you have to expect them to have some rough times working through this. Dont forget they havent been doing this for a couple hundred years. This is new. Just 50 years ago they couldnt get along with anything. Now theyre trying to do the same currency. You have to expect some bumps along the road. I dont think greece will bail out. If they do i hope its a disaster so no one ever tries to follow them. I have to believe they are going to pull through that. I think you can get into europe at very good valuations and make more money than the u. S. In the next year or two. Qe just started. Good to see everybody this afternoon on a tough market day. Thank you. 50 minutes to go. Major declines across the major indexes. The dow is down 317. The s p down 29. Thats good enough for decline of 1. 4 or thereabouts. The nasdaq matching the dow in terms of being down 1. 7 or 1. 8 today. Its giving up 86 points bob. No real bounce at all, kelly. Lets take a look at the s p heat map. Theres no place to hide it doesnt Matter Health Care Consumer discretionary, materials, the entire mark set down 1. 5 . Its a uniform selloff. Much more to come on todays selloff. Well also talk about that story out of china and how much impact thats having on these markets. Well get into the details. Also ahead, a top money pro says you should be dying dow component Cisco Systems today. Well hash out both the bull and bear cases when were back in two. Excellent looking below the surface, researching a hunch. And making a decision you are type e. Time for a change of menu. Research and invest from any website. With e trades browser trading. E trade. Opportunity is everywhere. Dont just visit new york. Visit tripadvisor new york. With millions of reviews and the best hotel prices. Book your next trip at tripadvisor. Com today. So, how do you feel about cash back . I would not say im into it. But lets see where this goes. [ buzzer ] do you like to travel . Im all about free travel, babe. Thats what i do. [ buzzer ] balance transfers you up for that . Well unh. Too soon . [ female announcer ] fortunately, theres an easier way, with creditcards. Com. Compare hundreds of cards from every major bank and find the one thats right for you. Creditcards. Com. Its simple. Search, compare, and apply. [ ice rattles ] our world is continuously transformed by the innovation of business, but at pwc we believe that businesses can go beyond products or services to have a measurable impact. As a professional services firm, we recognize the role pwc can play in helping build the Financial Capabilities of the next generation. Our commitment to doing so, has helped our people make a difference, not only for our clients, but for our communities. Thats the responsibility of business, and one way pwc is making a better tomorrow. Welcome back. Lets take a look at the markets. We were hoping for a boungs when europe closed. There was obvious selling pressure coming from there. Europe closes at 11 30. What happened . Essentially nothing. Dow industrials down 300 points s p down 26 points. Nasdaq down 82. Look at our heat maps here. Really lets not quibble too much other than yew tills, everything is down about 1. 5 . Technology discretionary, financials industrials, energy. This is a pretty broad selloff overall, kelly. Not many places to hide. Dominic chu, keeping a sharp eye this final hour of trading. Dom . One bright spot on a down day as mattel. The company has been struggling of late. Barbie sales continue to drop. It beat expectations for the first time in six quarters. Those shares up by 6 on a down tape. American express, the biggest loser in the Dow Jones Industrial average. The company Beat Estimates but revenues fell short due to the strong dollar and the end of several cobrangdding relationships. Goldman sachs, following a downgrade. A valuation call there. Verizon, rolling out a new plan allowing its fios customers to make monthly choices of which channels they want to watch. A la carte style. The stock is up 5 so far year to date. Outpacing whats happening with the dow and the overall s p. Back to you. Well talk a little a la carte, dom. Verizon slicing up its bundle packages to give consumers more choice over the channels they pay for. The public has been clammering for this pick and choose package. Now that its here is it going to be a success . Richard tullow from albert freed is here. He says its a good idea. Amy, im with you, i added this up. I have amazon streaming, netflix, im paying for itunes and buying things on there. I have spotify. My bills are adding up and i dont have the a la carte package. Is this the future . If you sin netically bundle what youre currently offering or have as a consumer the package actually ends up being more expensive. If you sin netically bundle netflix with amazon and hbo, i think the bill ends up being much more than 120 a month. Well see if packages like these take off. Thats exactly what i was going to ask. Do we have a way of gauging from consumer surveys how much people are spending if you add up the streaming services on their own. We did a town check, right . We pared off time warners extreme package which is similar to this verizon package being rolled out with that package you wind up saving about 5 a month or spending about 5 a month more depending on how many overthetop services you get from splicing the cord. Thats not a big swing. Its not. A couple years ago it was about a 20 difference. Whats happened is the Cable Company offering has gotten more competitive but the theres more overthetop services. So to reconstitute the cable package over the top its costing you more. Right . Because netflix doesnt have everything anymore. Now its netflix, amazon hulu, so on and so forth down the line. Con ten is the no longer king. The king is experience. If you can provide the experience to consumer you can charge more. If you cant, you cant charge more and youre probably out of business in ten years. This seems to be the midground between a full cable package and cheaper package that are offered elsewhere. Do you think theres an audience for this . This isnt cheap. Its going to add up quickly. The audience is still small. I think the idea is that the traditional Pay Tv Companies need to target millennials which comprises 10 million to 15 million. Theyre used to getting content for free on the internet. Its to get the millennials learn how to pay for pay tv. I still think content is king, rich. Crackle, that sony channel which only has seinfeld for example. Thats enough to establish that. The experience all right, now content is a component of the experience. In other words, would apple tv become more attractive because its a better userener it face as opposed to cable . Right. You want to be integrated with not only the con ten you love but the people you love in the virtual world. You also want to be integrated in the if its cal world. You want to watch whatever you want to watch. What about cost though . At the end of the day, this will determine what people will do. Is this move by verizon is something thats going to get them new subscribers, peel off existing ones . As millennials form their households, have kids get married, they invite friends over to watch the game. This package is targeted at getting the millennials into buying linear tv. Longterm, we think linear tv is not going to exist, not in 20 years. Let me pick you up on that. Amy, can you envision a day when cable providers are completely out of a linear tv business as richard was talking about and everything is on demand . Is that coming . Can you give us a time line . I think its generational changes like richard said but i also think the traditional Pay Tv Companies are being forced to change and being forced to address a lot of Consumer Behavior which is are vastly different than what they were a decade ago. It will probably take five to ten years. The two of them agree. Five to ten years. Five to ten years. Heres the thing. If i was building this mpd today mpd . I wouldnt build it. I wouldnt offer the service. Ill charge for the app, ill charge for the advertising on my side. You can charge for the advertising within your own app and well make more money that way than this current system. Would you not invest in the Cable Companies until they move in that direction . Ive dropped coverage of them. Its still going to add up. Content does matter thats what i pay for. Appreciate it. A little less than 40 minutes to go before the closing bell. Were not getting much of a bounce. The Dow Jones Industrial average still down 322 points. The s p down 28 nasdaq down 86. Its a sea of red. Up next we shine the spotlight on Cisco Systems and the dow, its getting hit. Someone here says there are plenty of reasons to buy the tech giant, especially on a day like this. Both sides of cisco stock story when were back in two. And takes the wheel right from your very hands. This isnt that car. The first and only car with direct adaptive steering. The 328 horsepower q50 from infiniti. You used to sleep like a champ. Then boom. What happened . Stress, fun, bad habits kids, now what . Lets build a new, smarter bed using the dualair chambers to sense your movement, heartbeat, breathing. Introducing the sleep number bed with sleepiqtm technology. It tracks your sleep and tells you how to adjust for a good, better and an awesome night. The difference . Try adjusting up or down. Youll know cuz sleep iq™ tells you. Only at a sleep number store where youll find the best buy rated mattress with sleepiq technology. Know better sleep with sleep number. Welcome back. 35 minutes to go and a tough session for stocks here. Lets check in with the dow. Down 319 points as we head into the weekend. Bob, weve seen a couple fridays like this nervousness about a greek exit. Perhaps a lot of focus on china. Well get to that. The s p down 1. 4 the nasdaq losing 85 points this afternoon. Cisco systems hasnt done much this year. Is that a reason to buy it . How about seven reasons to bet on the stock. Not so fast eric is here to tell us why to avoid cisco stock. Welcome to you both. Jeff, why dont you start by giving us your number one reason to buy cisco here. Well i think the biggest reason people should look at cisco, as weve seen today, the market is flipping the light switch on and off. Its important for investors to remember, theres not a lot of good alternatives out there. It has problems with the strong dollar and revenues. But when you look at the market broadly, there arent alternatives for value. Cisco is one. Im not going to act like its the next coming like it will double in the next month, but it has a forward p e of 12 3 dividend versus what else we have the in market right now. L nothing else to buy, really a reason to buy cisco rather than lets stay on the side of the market . I see for years, i love cisco. I love the guy running the place but earnings have been anemic for years. I think were 2 forever right now. I dont see real revenue growth. Make the case for why this is not such a good idea. So bob, were neutral on cisco. The reason is cisco has a lot of exposure to a lot of legacy architectures, networks in the enter prize. Theres a lot of Disruptive Forces that are really coming into the market right now. Theres serious risk that if cisco doesnt execute, that they could lose share where they are the dominant player. The carrier space, they have great exposure to carriers but carriers have been struggling with the cloud providers and so at both ends of the spectrum cisco has execution that they need to work on. Were neutral, i think its a company with Great Potential but its a leap of faith to assume theyll get there. Jeff what about consolidation across the industry . How would that play into the argument for or against cisco here . Well i mean cisco has participated in some consolidation, especially in the growth area of cloud and Cyber Security which its trying to get into more. Chambers was bullish about that part of the enterprise business. The 2013 purchase of source fire, i think it has plenty of dry power with 54 billion in cash. I wouldnt count cisco out. When it comes to the disrupters the fancy buzz word cisco is there. Its a big player in cloud infrastructure, the number one by market share, 14 ahead of hp and ibm. I wouldnt say theyre falling behind. I think theres a chance someone could show up out of somewhere and knock cisco off its perch. I think negativity has been priced in. Jeff im not that concerned about a consolidation for cisco right now. Eric, this is the same problem all the big tech players are facing. Ibm is facing the same problem, nimble, quicker competitors that are out there. Is there any situation under which he suggests cisco might be able to survive and prosper in these situations . You know right now, with security being so top of mind with software and mobility becoming such a change in the changing dynamic in the market consolidation customers are looking for best of breed. Theres really a need for the best products out there. And ciscos endtoend approach has been a challenge. Right now thats not working for him very well. Gentlemen thanks very much. Thanks to jeff reeves from investorplace. Com and erik suppinger. Now time for a cnbc news update with sue herrera. The Measles Outbreak is officially over. Thats the word from the California Department of health. 147 people were infected with a vast majority in the golden state. A large study of Bristolmyers Squibb treatment has been halted after proving that drug is effective among the most common form of lung cancer. Marco rubio addressed a small group of students on a number of issues including normalizing relations with cuba. Japans Prime Minister met the governor of okinawa today. The governor strongly opposes a plan to move the u. S. Military base on the island to a less populated area. A few weeks ago, the governor asked the government to halt work at the relocation site due to environmental concerns. But that request was denied. And the rift appears to have deepened. Thats your cnbc news update for this hour. Back to you guys. Were still wincing at the measles photos. I know. I know. Glad its over for now. Absolutely. 30 minutes to go here. Listen, at the lows of the session the dow was down 350 points. Now were down less than 300. Still plenty of time here. The s p 500 having a tough session, down 1. 25. The nasdaq giving up 80 points today. The carnage on wall street today, thanks in part to china and its potential to be a wild card for wall street. Up next the pros weigh in on how much worse things may get over there and the ripple effects over here. And ibb, its actually down today along with the rest of the market. Its down 1. 5 but its still up 60 over the past year alone. Our meg terrell highlights drug stocks that could be in play ahead of two major cancer conferences this weekend, when we return. Before he opened his first hot chocolate stand calling winter an underserved season. And before he quit his friends leafraking business for not offering a 401k. Larry knew the importance of preparing for retirement. Thats why when the time came he counted on merrill edge to streamline his investing and help him plan for the road ahead. Thats the power of streamlined connections. Thats merrill edge and bank of america. Your moms got your back. Your friends have your back. Your dogs definitely got your back. But whos got your back when you need legal help . We do. Were legalzoom, and over the last 10 years, weve helped millions of people protect their families and run their businesses. We have the right people onhand to answer your questions backed by a trusted network of attorneys. So visit us today for legal help you can count on. Legalzoom. Legal help is here. Lets check the markets here. Oh, my heavens, we were off the lows. We were down 320 points. If we stay open until 8 00, maybe well see positive territory. Theres the russell 2000 down 1. 6 . Transports only down 6 . Kelly . Lets dig into this for a second. There was a change in the chinese stock market that makes things operate more the way we operate here bob. Dominic chu, what do you see going on exactly . Look at the shanghai index and the move weve been seeing recently. Over the last seven weeks were at near sevenyear highs for some of the chinese industries. They may be getting ready to take a break from the rapid rise. Like you said the security regulators in china are looking to clamp down on using leverage to buy stocks. In other words borrowing money to buy stocks in an effort to boost their returns. Thats marginalizing. Trading volumes are surging more and more as Chinese Investors take advantage of losing restrictions for their own stock market. The focus could be around umbrella trusts. Its a type of instrument that cairn provide more leverage than traditional margin borrowing from brokers. Theyve loosened restrictions on stock lending. Participants have more leash declines on stock values. As these markets try to get more normalized, some of the triggers could at least maybe add to downside volatility for chinese stocks. Kelly, bob, back over to you guys. Thank you, domomnic. His firm runs the emq emerging markets, etfs and simon maehl. Simon, let me start with you. Its confusing over in china. On the one hand we see regulators. We see Bank Officials clearly indicating they want to stimulate the economy. At the same time, they seem very concerned when they see stock market moves like weve been seeing in china. Is it rather confusing for the average Chinese Investor at this point . What should we be doing here in the u. S. . I dont know if it is confusing for the Chinese Investor. The Chinese Investor the chinese Retail Investor i have to stress is not the most fundamental investor in the world. Thats why youve seen the chinese authorities step in today, to start to deflate what it deems to be a dangerous speculative bull run in china. What china wants to avoid at all costs is social unrest. And leaving a large number of chinese Retail Investors exposed to potential stock market losses through a collapse in a speculative bull market is a potentially large cause of social unrest. Thats why youve seen them step in. Simon, just briefly, if Chinese Markets continue to decline, how much of a head wind will that be for the u. S. . I dont see the Chinese Market as an enormous headwind for the u. S. Remember the Chinese Market is a selfcontained market yes, the Chinese Investors can access the Hong Kong Market. Their ability to access the u. S. Market is very, very limited. They can do it through a system called qdii. I think the total amount under the qdiu quote was 80 billion at the moment. What will be a headwind is the weakening state of the chinese economy. Weve seen weak expert numbers recently. Weve seen an economy which headline is growing at 7 . There are real concerns that the actual growth rate should be below that. I think youll see more stimulus measures from china coming forward to stimulate what is a weakening economy. Let me go back to this confusion part. I do think theres an issue here. Chinese authorities made a big thing about opening a link between shanghai and the hong kong stock market in the hopes there would be better twoway trading, not just between hong kong and shanghai but also Retail Investors and shanghai and linking in to hong kong. Now, thats happening. And weve seen dramatic jumps up in some small stocks as well as arbitrage and opportunities twenge hong kong and shanghai. They are talking about opening a link between shenzhen as well. They are saying we have to control it better. Thats the point im making on a little confusion. I think youre right. Theres been at least the appearance of clamping down. If you just back up and look at what china has been doing in terms of opening its market and giving access to the ashare market through the new program and allowing domestic investors to get into the Hong Kong Market all of the steps announced overnight were part of a longer term opening up of the chinese stock market both inbound and outbound. And its going to go on for a long time. Make the case for buying chinese equities here. Well as was pointed out a little bit earlier, i think its appropriate to think about with the selloff of last night, the markets had a huge run. But you have to remember the chinese economy, the mainland investor has few investment options. The real estate option which was the lead option for many years, has kind of dried up. So i think i still think its early in the market the bull market in both the ashare market and Hong Kong Market. The chinese economy, while the numbers have declined, the absolute level of growth is enormous. And i dont see any sign of that slowing down. And in particular where you see it is in the ecommerce names, the alibabas of the world which are systematically left out of the benchmark. There is growth for sure maybe just not in the broad index. Ill have to leave it there. Kevin and simon, thank you. We have a rally going on. Actually were about 70 points off of the recent low. We were down 320. Now the dow is down 260. The s p was down 26 points now its only down about 22 points nasdaq coming off the lows. Kelly kelly . Coming up, we go live to the Nasdaq Market site for a check of whats happening over there. Back in two. Erectile dysfunction and the urinary symptoms of bph, like needing to go frequently, day or night. Tell your doctor about all your medical conditions and medicines, and ask if your heart is healthy enough for sex. Do not take cialis if you take nitrates for chest pain as it may cause an unsafe drop in blood pressure. Do not drink alcohol in excess. Side effects may include headache, upset stomach, delayed backache or muscle ache. To avoid longterm injury, get medical help right away for an erection lasting more than four hours. If you have any sudden decrease or loss in hearing or vision or any symptoms of an allergic reaction stop taking cialis and get medical help right away. 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Theres got to be better cards than this. [ male announcer ] theres a better way with creditcards. Com. Compare hundreds of cards from all the major banks to find the one thats right for you. Its simple. Search, compare, and apply at creditcards. Com. First rounds on me. Welcome back. Theres a look at the trading action today, closing out friday on a tough note. The dow down 264 points the s p losing 23 and the nasdaq especially, bob, off 75. Tough time. Lets talk about the nasdaq. Bertha coombs nobody saw todays selloff coming but on a down day, the high data names, the social media. Biotech stocks chip stocks are down. Bring us up to date. Weve come off of lows because apple has come off of the lows. Apple responsible for the biggest drag on the s p dragging down the dubai about 7 points or so. One of the things about apple theyre in a quiet period. Were not going to get good news from them until the week after next when they report. That stock tens to be under pressure and technically weak selly conductors are the weak losers, off 2 . The earnings weve gotten so far on semiconductors, not providing a catalyst for people to step in and buy them today. Amd was the disaster de jour. We had some stocks bucking the trend. Ten stocks in the nasdaq 100 are moving to the upside. Mattel beating it, particularly on the top line. Really very upbeat about its prospect on the turnaround there. Seagate technology is also up. Its one of the sectors projected to show an increase in this quarter, blended increase above 4 . Netflix is the stock of the week. Netflix up about 25 this week after posting those much better than expected subscribers numbers and closing out the week on an alltime high. A huge move for a name that large. Bertha, thank you. Bertha coombs at the nasdaq. Jackie deangelis is standing by at the nymex. This was one of those weeks that left traders scratching their heads, not sure whats going to happen next week. The fact we didnt close over 56. We settled at 5574 was a little bit of a negative sign to a lot of people. That was a key technical level. Also you have the head of citis European Energy group saying to our colleagues that hes still bearish on oil and thinks there could be Downside Pressure ahead ahead. A lot of people are questioning the analysis that this wasnt a head fake that this could be a bottom and wonder if well continue to trade in the range of 45 to 50 until we get more concrete information. We get an opec meeting in june. Nobody is expecting to see a Production Cut there. We had an output report from them that said they were raising output in march. That supply demand equation is still on the table. Also we have that correlation with the dollar come back a little bit. You get a stronger dollar today, pushing crude down as well. But still, five straight weeks of gains. We havent seen that since february of 2014. So pretty remarkable at the end of the day. Back to you. Thank you, jackie. 12 or so minutes to go before the bell. The Dow Jones Industrial average a modest rally off of the lows. Were down 262 points right now. The dow is seasonally down 1. 2 . So weve been in negative territory ever since this morning. The s p 500 was down about 26 20 minutes ago. Holding steadily right now. The nasdaq also to the down side. Kelly . Lets see if stocks can regain footing in the final minutes of the trading week. Closing bell is back right after this. Theres some facts about seaworld wed like you to know. We dont collect killer whales from the wild. And havent for 35 years. With the hightest standard of animal care in the world, our whales are healthy. Theyre thriving. I wouldnt work here if they werent. And Government Research shows they live just as long as whales in the wild. Caring for these whales, we have a great responsibility to get that right. And we take it very seriously. Because we love them. And we know you love them too. My feet felt so heavy at the end of the day. They used to get really tired. Until i started gellin. I got dr. Scholls massaging gel insoles. When theyre in my shoes my feet and legs feel less tired. Its like walking on a wave dr. Scholls massaging gel insoles, im a believer and joining us now, lets take a look the dow industrials down 1. 5 . The s p down 24 the nasdaq down 26. Were negative for the week right now. [ inaudible ] outside of the traditional thing that everybody is talking about, the headwinds from the dollar and the fact that earnings coming in and they have come in quite a bit, we started the year at 15 times earnings. Were now tw sm wheresomewhere between 17 and 18 times. The fed issue, everyone is wondering when and how and where. I view it more as that question creates uncertainty and the markets hate uncertainty. I only see one engine in the market. That is the fact that Interest Rates are at zero. I find that can thats really pushing out the risk premium to a point where people in an effort to get performance, theyre simply trying to get invested. There is no alternative. You were one of the first people who talked to me about that a year ago. You kept pounding away where else am i putting all my money . And why did you abandon it . When we started talking about that we were at 11 12 times s p. Were now at 17 times. Its not a question that were 17 times. Were 17 times and earnings are going up. Then i have no problem with it. Earnings are going down in this case. Do you think this is the beginning of a further move lower . Kelly, i think its a welcome and needed pause. December, then you had the selloff in january, recovery february. This is a needed pause. I would be shocked if the market were going higher. The gdp number atlanta fed has this thing called gdp now which you follow. Your readers and viewers should look at that as well. Thats calling for the First Quarter to come in at onetenth of 1 . Profits are supposed to be down about 3 . Jobs housing, the construction sector. You have these different forces putting downward pressure. Morgan stanleys economist think the economy will pick up in the second half. Inflation will pick up. You smell opportunity . Let it come in to you a little bit further. Im amazed greece china, brazil, thats another one and oil really needs to make a convincing bottom. Oil is up 11 on the year in europe and 6 here in the United States. So has it really made its final bottom . I dont think so. Thats when you want to buy the farm. Where are you long . Are you long anything right now . Im long some of the older economy stocks. Im taking a contrarian position. The euro against the dollar. I think the trade is so overcrowded, yesterday something happened we completely ignored. When greek threeyear trading at 26 . And obviously thats implying a problem. If greece goes away what im thinking is maybe the euro is actually better maybe the eu is better than worse. Therefore, having tremendously overcrowded trade, that should get into gear then youll see a big trade coming out of the euro. Appreciate it. Up next bob is right back with the closinge ging countdown. We have a busy week ahead. We have a ton more earnings on tap. Youre watching cnbc, first in business worldwide. Day for the legal help you need to start and run your business. Legalzoom. Legal help is here. The lightest or nothing. The smartest or nothing. The quietest or nothing. The sleekest. Sexiest. Baddest. Safest,. Tightest,. Quickest,. Harshest. Or nothing. At mercedesbenz we do things one way or we dont do them at all. The 2015 cclass. 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Opportunity is everywhere. [ 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. Welcome back. Three minutes to go before the closing bell. No real bounce. We were anticipating one. Didnt happen. Dow down 280, 320 at the most. Lets take a look at the Dow Jones Industrial average for the week. We were doing fine until we got into friday. See the move to the downside. Essentially were down 1. 25 for the week. And one of the big etfs for the year the one everybody wants to buy and nobody can quite figure out ho make money at it oih, the market oil service index. They started buying it dramatically in january, sold it in different parts. Here it is on the weak slightly to the upside. Schlumberger came out overnight and said dont expect a big bounce at all in the overall order and production system. But still, stock is to the upside as the numbers they put up were much better than anticipated. Joe and david, joining us as well. We heard from joe is long right now. He likes to bet on euro. What are you long on right now. Buy europe buy japan and get required of your Real Estate Investment trust. We think rates will rise towards the end of this year. Buy mass limited partnerships instead of the Real Estate Investment stuff. Thats what wed be doing right now. Weve seen this tremendous interest in china as the chinese authorities are trying to open up their link to the outside world. Theres alternative investments, ways to get into china right now. Would you be playing any emerging markets on the dollar . Probably not. I think the market is vulnerable here. I think we can come in quite a bit. Im a great believer in the fact that you cant try and make money every day. Sometimes you have to just step back and hedge yourself up and take a more neutral approach and wait for better opportunities. Usually when they come after them they come after all. You were one of investors that put your own money to work every day. These are two old Morgan Stanley guys. Ive known them for a long time. How long are you in cash. Not at all. Im neutral. By neutral you mean. Im hedged against my own position. I have 50 of what i usually have long is what i currently have. Im 50 invested and totally hedged. And you . I think lots of cash is fine right now. You want it in short maturity or duration inflationadjusted bonds. I would also say 015 will be the year when we look back. China decided to internationalize, make it convertible and make it part of Global Reserve Holdings by other Central Banks that will lead to people rebalancing. China is less than spain in the global index. People will go flowing into china bonds and stocks. Ten seconds, earnings will be better than expected and we may have a mild in two weeks . I dont think so actuallipy think the dollar is a problem. Thanks juror joining us. Kelly avenues an is next with the closing bell. What a session weve had on wall street, going out with declines of 280 points on the Dow Jones Industrial average. The s p giving up about 24. The nasdaq selling off to the tune of 75 or 1. 5 today. A pretty ugly session, not many places to hide. Lets put it all in context. With my panel now, evan newmark, Sharon Epperson and. Good to see you. What do you make of these declines . It all started with germany. Im sure you talked about it at length. The dax has been on a huge run, gave up the ghost a little bit last night. The concerns now are about china. The posturing with the greece thing, its squaring people into the weekend. That will be resolved one way or another. The underlying factors that have been concerning to me are still there. You can talk about this the weakness in the transport since the fall is something that ive talked about and something that continues to be worth monitoring. Michael santoli. The transports are on the negative side. We were on the verge of a breakout with the banks the other day. To me, the way it looks is a downward adjustment. I think if you looked at the chart were in the lower part of the upper end of the trading range right now. The lower part of the upper end. Thats how modest this looks right now. I like that. I feel like its a little bit of an adjustment. Obviously can go well further from here. I dont think it picked up a lot of momentum during the day. Sharon . That actually sounds like a rather optimistic outlook when you think about it and talk about longterm investors who are always concerned when they see market gyrations. Its important to keep that in mine. This is a cautious time. We are concerned about what is happening in europe. We are concerned about the news out of china. Be optimistic. If you were well diversify, you might have been upset that your International Portfolio didnt do well last year when the s p 500 was taking off. Now look at where you stand because youre diversified. If youre well positioned, thats okay for you. Its safe to say weve been stuck in a trading range for some time. At some point is that equivalent to a buying opportunity . I dont think its a buying opportunity. I think today was much to do about nothing, kelly. I think the greece story, people are really bored with it by now. My view is i dont think greece will stay in the euro. I would be much happier if they got out sooner rather than later. I think its an overhang. Let me stop you on greece for a moment. You bring up a point. Lately some of the conversation interestingly enough we are starting to hear on wall street i think dan drunkenmiller was saying about this. If greece leaves that could be a surprise catalyst. I think its not only good for the euro i think its good for the european economy. It diverts atension. Greece is not that big an economy. It diverts attention. You dont want your central bank, you dont want mario draghi everybody in the eu worried about a relatively small country with a relatively small economy. Youre not worried about greece. If a bank has trouble at this stage with greece leaving and if they run into trouble, then the bank deserves it 100 . Because theyve had fair warning now for about five years. Look, its going to happen. I think even germany right now would be almost leaved for it to happen. If you let one out, if its no longer an inviable thing to have this currency union, where does that leave you . Its a warning to portugal and a few of the other misfits. Look at where their bond yields are trading. Its hardly been taken if its a warning. Not greek bond yields. The other bond yields are ridiculous. My general take on this is greece leaving would not be a lehmantype event. It would be quite the opposite. I think it would be a liberating event. I hope it actually happens. Lets bring in another voice here. Keith list joining us off the floor. I hope you caught part of that position. I did. How much of the headlines are contributing to the declines we saw today . I think its contributing but its a menagery of a lot of problems that im surprised the market has been holding up as much as it has over the last couple weeks. The market has largely been ignoring the problems around the world and theyve not gone away. Look at the geopolitical risk the fiscal risk and the currency risk as well as the Economic Data, we have to be clear about this. The Economic Data here in the u. S. Has been weakening since february. Theres been a real concern there. A lot of people i talked to on the street clients as well as colleagues alike, theyve been concerned about this market. All it took was one match to light the fuse today. I dont really think so. I say that because if you look at the Consumer Sentiment data today, look at the cti data thats one data point. Thats true. One at a time. Let me finish. The cti data was good. Were going into spring. The u. S. Economy will have a good spring. Thats my best guess. I think worrying about margin call requirements in china, thats much to do about nothing. Keith . The move today is much to do about nothing, for sure. Weve not reached Technical Levels that we need to be concerned about. I totally disagree on the Economic Data. Youre cherry picking a few data points that weve seen over the last 2 1 2 months. If you look at the Bloomberg Economic surprise index, the citi fx economic surprise index within theyre at lower levels that weve not seen since the crisis. Those are real concerns to are me. I take your point but at the same time were seeing Consumer Confidence surveys posting best ratings. So if things are really that bad, why is confidence especially on the consumer end finally starting to perk up . Remember what drives Consumer Confidence. People have jobs securing jobs paying less at the pump. Theyre not seeing inflation come into their world right now. We have to look at other things that are happening. Theyre expanding out their own credit. The Balance Sheet in the Consumer World is continuing to expand out to dangerous levels. Im not saying that the picture is totally fall off the cliff bad but im saying we just need to be careful here. I think youll find that the market will struggle to push to alltime highs even though we had the russell hit the alltime high on tax day. What well be looking at were starting to see that in some of the earnings reports once we got the financials oust the way. If topline sales dont improve and multiple expansion is at high levels right now. Thats why i think it will move the market what is going to move the market from this point. Sharon . Where do you put money now . Where are you putting money to work now in light of the economy . Were neutral on the market its neither overbought or oversold. Todays news is much to do about nothing. If we come down and breach the march lows on the s p 500, which is around the 2039 2037 level, i have cause for concern, probably put more money out. But right now, neutral the market, its steady eddie. Leave it alone for right now. Guy adami, chime in here. Theres no more assanine indicator than Consumer Confidence. Tell me what the s p did and i will tell you where Consumer Confidence is going to be. Wait a minute. Hang on. Hang on. The s p has been moving in a range for a couple months. At the same time Consumer Confidence hit new highs. Yes. Has it been in a range . Yes. As the market tonights to do well Consumer Confidence continues to accelerate. If we have a lousy couple weeks in the market well talk in a month or so and ill tell you where Consumer Confidence will be. It will catch up . That is not a good indicator of anything. I would say theres no inherent contradiction between consumers feeling better and the stock market stalling out. We had years when the stock market, the financial economy, outperformed the main street economy. It looked like the leading indicators of that trend were changing coming into this year. Thats what were seeing, i think. Guy . Well i mean thats just from my vantage point, thats the way i look at the world. If were going to try to gauge the market based on Consumer Confidence, i think were making a huge mistake. I think the Economic Indicators by the way, at best have been mixed and at worse have been lousy. I do think there are warning signs out there. Today could be another blip. You cant just be glib and say greece is not a big deal, china is not a big deal. Nothings a big deal until it is. Mr. Glib . I dont feel like im being glib. I always have a touch of glib in me. Im not saying that everything is gangbusters. Im definitely not saying the stock market is a buy here. I think stocks are expensive. If people are expecting the economy to fall off a cliff and have the s p follow it i dont see that happening. They should be positioned for that to happen. Positioned that there is going to be a pullback and be prepared if that happens to make sure youre invested in a way that will not make your entire portfolio crumble which is what so many baby boomers are worried will happen to them. Investors and traders are two different animals. I cant wear both hats. I dont think anybody can. Good point. What ends up happening with a good investment becomes a trade and a good trade people get con fusefuse confused right . An investment that does really well quickly becomes a trade. You cant marry the two. Number one look at what worked today. Look at the stocks that were higher. Black stone is a name ive mentioned countless times on this show. That had a great day on a lousy take. So did mylan labs. Look at netflix continuing to run on what was an abominable take. I think theres a key to this whole discussion and its called jobless claims. Mike santoli, am i wrong . Look its quite clear whats been happening. Jobless claims are an exceptionally low level. Yes, they ought to be but they remain very low. That points to a relatively healthy labor market. Population adjusted yb we. Claims are at rock bottom levels right now. On the other hand, in the last month, the market implied likelihood of a september rate hike by september has gone from 100 to 40 . Wow. Right . Something like that today. Basically you had everyone say we know we had a bad First Quarter. Maybe well print the negative number again for the First Quarter. We did last year too. One comment. You cant draw the conclusion again, i believe this from the bond market because the bond market right now is artificial. You have still the fed sitting on 4 trillion worth of securities and you have the european basically flooding their market with money right now. It was also three or four weeks ago when it was at 100 . Exactly. They may own a big chunk of it but they dont dictate what people do with the rest of it. Out in a world in which the tenyear german how can we draw real conclusions from shortterm rates . I cant. Important question. Guy . Tenyear to me is not short term. Tenyear u. S. Rates, we could have had this conversation six months ago when tenyear was 2. 4 and you would have been convinced its headed to 3. 5 . Im convinced its headed much lower than where we are now, 1. 25. Were in a deflationary environment. Everybody seems to think thats a supply side thing. Maybe a small part of the equation. I think its a demand side thing. I am telling you now, the global economies are nowhere nearly as strong as their stock markets suggest. Final point ip going to make. Well leave, take a break and come back. Mike santoli, if the economies are going and the Interest Rates are low for other reasons, well look back on this as massive stimulative, right . Yes. I think the fed in its model says what Energy Prices have done should also be an ak sell ran the. Stay right there, everybody. Guy adami is coming up with the rest of the familiarfast money crew at 5 00. What does he think of chinas warnings to regulators. Dont miss that one. More of our coverage when the closing bell returns. Youre watching cnbc, first in business worldwide. So you can live the way you live, and enjoy all the rewards. Chase sapphire preferred. So you can. Saving money is as simple as making small changes in your routine. If you make coffee at home instead of buying it every day you can save over 1,000 a year. Trust me no coffees that good. The more you know. Welcome back. A big selloff for these. Dom chu looks at the main names dragging down the blue chip index. Hi, dom. We have news on the dividend front, kelly. Procter gamble, the Company Announced it will boost quarterly dividends from 64 cents and change to 66 cents. Thats a 3 increase. Procter gamble saying it expects to pay out about 7. 4 billion in dividends in fiscal 2015. Also that its its 59th Straight Year it paid out dividends. One of the decliners, one of the biggest decliners year to date on the overall Dow Jones Industrial average. If you take a look at some of the other names that were dragging things down a bit, microsoft on the Software Side of things again, down about 10 . Large Cap Technology not faring well for the dow year to date in 2015. The worst performer in the dow, one of the worst performers is whats happening with intel. Down 10. 5 . Those shares down by 17 , this after news that it will end its Partnership Agreement with costco for its cards. Some of the stocks that are winning here on the dow, getting that tug of war to break even right now. Check out whats happening with disney, up 13 . Again, year to date. A newcomer to the index, apple, helping to add things in terms of the overall things right now. On a percentage basis up 13 year to date. A couple others that are at least decent waits as well boeing on the aerospace front, those shares up 15 and United Health on the insurance side of things, thats helping things out in terms of percentage performance anyway. One of the triple digit value stocks in terms of price. Its price weighted. Those shares up by 17 . Kelly, thats where the balance is, some of the weights on the down side and up side pushing things to flat year to date on the dow, kelly. Dom thank you for running through all of that. Markets finishing off this week with the dow down 300 points today, nearly. Lets bring in shark tank investor kevin oleary and our very own Rick Santelli along with a panel, well buckle up for this one. Is this a massive buying opportunity for stocks . Its a sit and wait listless market, earnings have been lackluster. The fed, i wish theyd ram through a rate hike and get it behind us. At the end of the day, if you have to put incremental money to work, which i have to do i want to go into the credit market where i can make 4. 5 on 36 months, almost Investment Grade double the paper of a company or should i buy a stock with a 3. 2 dividend . What im leaning towards is an acceleration in earnings in request3 and q4. I believe weve not seen the full earnings power of Energy Prices. Dennis that 8 figure kevin is looking for, are you finding that in stocks . Not from this point on. Keviness aa bright guy, brighter than i could ever be. Hes mr. Wonderful for a reason but 8 from here i dont think so. I think today was a very disturbing circumstance. It had been a bull market. It might well still be a bull market. I think damage was done to the psychology of the market the fact that one of the great leaders, apple broke trend lines today which i think was very important. The fact that were seeing a change in the leadership that were not getting quite the same amount of activity in the advance decline line. The transports have fallen off a cliff and have been leading to the upside last year. The dichotomy between the transports, we heard that talked about several times. I think its very disturbing. I trade only for my own account. What i say is what i do. I cut back my positions rather dramatically today. I had apple. I cut it in half. I added derivatives to hedge on the short side. I wrote further calls. I cut my long positions back dramatically and added to the short side. Im a trader at this point, not an investor. Thats my question for both you, dennis and kevin. Which is what were hearing is basically two total different points of view because theyre starting from a different point. Dennis i want youre looking at things as a daytoday trader. You change your mind twice a week. Somebody like kevin is looking over a 12month probably 18month time horizon. When you look at the market, youll have a different conclusion because youre looking at two totally different time frames. When i think about it and id be curious, i look at it as an investor. As an investor, you cant look at today and go the world is ending or i have to cut my position. Because not that much has happened in the past three or four months to make you say that. Dennis . Actually there are times when i am an investor. Ive had a long position in tanker stocks for six, seven months. Ive had a position on. The only funds i run up in canada along the nikkei since last october. I enter every trade as if its going to be a trade. I hope every trade will end up being a profitable position. But i will admit, there are times i change my mine. I think its wrong to say i change my mind every two days. Thats just not true. Today i think ive changed my mind for a while and become much closer to neutral than i have been in a long period of time. Rick santelli let me bring you in here sir. How much are people changing their views out there where you are based on some of the data or moves in europe or china if they are . I think they are. I think theres both those issues, china on the financing side the leveraging side. I think thats an issue. A canary in the coal mine maybe, to get a glimpse of how it will play out here when we snug up a bit. The grarnd picture is traders are actually making boxes and squares to see what day and time the boom goes into negative yield. That will be a big event. Were sitting at 186 and a 10 you can pick anything. Theyre looking to how how dramatic of an effect we get in the u. S. As they start to go negative on some of the deep pocket european high liquidity sovereigns and theyre talking about the lowest common denominator trade. Theres going to be issues where things spike like in greece. Everybody cant win on the more dead is better game. But is the lowest kmorn denominator, somebody will be a winner. Most likely it will continue to be the long end of the german curve and the long end of the u. S. Curve. Sharon . I wanted to ask you about energy. Oil up five bucks. Is this a bottom . What does that mean for the Energy Sector . Is that going to come back. Actually, sharon i turned neutral. Ive been bearish of crude oil all last year until a month and a half ago, then i got to be neutral. I must tell you, after this 10 or 11 rally from the lows and the fact that today the con contango i love when you say contango. It takes two to contango. Thats right. I think id rather be short crude oil, not a dramatic position but i think id rather be short of crude than long of it. I think weve seen as much of a rally as were going to get. The number of rigs out there obviously has fallen. Were Still Producing a lot of crude. Thats not going to fall off anytime soon. Kevin i think here id rather be short. Let me put this question to you, kevin. Pick one. Crude or credit . I go credit. Because i actually agree with dennis on his assessment. Ive been watching production numbers continue to actually crime though rig counts are going down. I watch cushing filling up at over 85 . At some point well be full there. I know theres a lot of speculation that we hit bottom. Thats wishful thinking. I dont think weve seen the bottom. Lets wait until august to see what happens when we have geopolitical issues behind us. I think grown men havent wept yet on oil prices. Thats the way to leave it. Thanks, everybody. I hope no one is weeping this weekend. A rough day on wall street. Whats next for this market . We hear from scott mather when closing bell continues. Dont just visit new york. Visit tripadvisor new york. With millions of reviews and the best hotel prices. Book your next trip at tripadvisor. Com today. Welcome back. The market taking a big dive today. Lets bring in scott mather. He joins us on the cnbc news line. Thanks so much for calling in. Whats your take on the carnage . Hi kelly. It seems to us well one we should put it in perspective. In terms of equities were back to where we were a few weeks ago. The root of todays price action seemed to be very much having everything to do with europe. We saw the four of course overnight equities under pressure from the u. S. Open after a large drop in the equity market in europe. From the bond market per spengtive, it looks like most of that concern rippling through the Financial Markets has to do with increasing concerns about greece. So you saw that spill over into the bond market today. You saw german boones bit up german yields down five basis points. And the peripheral in europe began to widen substantially in italy and spain. That caused we would call it core bond durations, core bond positions in the u. S. And europe to do well today. Does that mean the massive compression weve seen towards the german bund is over . We think because were at different points in the Economic Cycle as well as have very different points in the Monetary Policy cycle with the u. S. Fed beginning to move Interest Rates in the summer yet, the ecb continuing to do a massive amount of quantitative easing thats its likely we could continue to see bunds and other european bond positions outperform the u. S. Bond market. Weve had positions in place to reflect that Monetary Policy divergence. We think thats still a big theme with a lot to offer investors who want to play that theme throughout the rest of the year. Bringing in the panel in just one second here. How likely would you say is a relative likelihood of the u. S. And german tenyear debt going negative . So we think its quite likely that the german tenyear bond goes negative. Were down to five basis points. As more and more bonds go into negative territory, it means that the ecb, given the rules theyve established for themselves, need to buy more and more longer dated instruments that are pulling more duration more bond risk of the market the lower yields go. It sort of accelerates the move lower in yield in core europe. And that does have spillover effects into the u. S. Marketplace. Its one of the reasons why u. S. Bonds were very will bid today besides the weakness in the equity market. Undoubtedly that will hold yields lower than they would be otherwise in the u. S. Thats one of the reasons weve had positions in ten and 30year bonds in most of our strategies that are doing well in the u. S. We think theyll be could be takened even while the fed moves rates in the summertime. Scott, mike santoli here. Corporate credit, that seems to be the place where we have to start to worry about contagion, not greek sovereign yields bleeding over into government yields. Corporate credit has remained relatively firm. Yes, we would say, expect more Financial Market volatility as we head into the first fed hike. Because of that, some of that will spill over into the credit market. So you will see probably some spread widening. Youll secret curve steepening where longer dated credit instruments can outperform the shorter dated ones. Its not the time to be at the upper end of your credit allocation. You want to be a little bit more defensive, higher in quality and longer in maturity. Scott, what ends up breaking the consensus in the credit markets . By that i mean theres general consensus its just a matter of time but the tenyear bund will go negative, general consensus that the u. S. Yield curve will flatten when that happens. What changes this . Or is this a oneway trade . We think what actually changes that is the fed moving off of zero. So we think yields generally will drift up in the u. S. , more so at the front end of the yield curve than the long end of the yield curve. We think that could change Market Sentiment quite a bit. It cowl change the oneway bets into risk assets and we think were seeing signs that that is starting to have an influence. Thats why you have days like today. Big reactions that seem to come out of nowhere or at least can be attributed to something relatively unimportant for instance, the u. S. Economy. Greece is not very important for the u. S. Economy. Just expect to see a lot more of that. We always see that around Monetary Policy turning points. Market participants always seem to sort of forget that. Sharon epperson. If you see bond yields here in the u. S. Are generally going to drift higher, what do you tell to the Retirement Investors about what they should be doing right now with the fixed income portion of their portfolio, many of whom want to be able to rely on that but havent seen the returns they need so they dont outlive their money. Theres good news. Theres light at the end of the tunnel in many respects. Moving off of zero means theyll get a return for holing cash and theyll get a better return for holing high quality, shortdated instruments. Thats the light at the tunnel. The journey there is one where financial returns are going to be lower. So, yes, returns will be lower in the equity market. Returns will be lower in the fixed income market than what people are used to and what they need. But the faster we get off zero the more we move towards a normal Monetary Policy. The greater the longterm rewards will be for savers. Leave it there. Thank you very much scott, appreciate your time this afternoon. Thank you. Scott mathers, ceo of pimco. Its time for a cnbc news update with sue herrera. President Obama Holding a join News Conference with the italian Prime Minister earlier today. And when asked about the impending confirmation of attorney general loretta lynch, the president said it was crazy that her nomination had been held up so long. Boeings Largest Union withdrew its position for an organizing election at the companys South Carolina plant. The decision by the Machinist Union postponed the april 22nd vote by at least six months. Sand storms sweeping through parts of northwestern china, reducing visibility to less than 50 yards. As you can see, some people covered their faces when they went outdoors. The small particles turned the air a terrible yellowish color. The dust is forecast to stay in the air until monday. The chicago cubs called up chris bryan the from the minors one day after the team ensured that he cannot be eligible for free agency until after the 2021 season. This instead of after the 2020 season had he been with the team on opening day. That caused a rift between the cubs and the players association. By the way, bryant struck out in his first two atbats. Thats the cnbc news update for this hour. Back to you, kelly. That sandstorm was incredible. Its terrible. Its happening very frequently over in china. In certain areas, especially interior china. Oh, my goodness. Thank you so much. Sue herrera back at headquarters. Sea of red on wall street thats all the rage. Allen wasler allen allen wasler rounds up the hot list when we return. 10 billion Data Requests every day. The cloud allows us to scale up so we can handle that volume. We can help keep people safe and to us that feels really good. [ male announcer ] your love for trading never stops. So open an account with schwab. And when a market move affects, say a Cloud Computing stock youre holding, we can help you decide what to do. With tools that help you see how market activity is affecting your positions. So when the time comes to decide whether to scale in or scale out. You can make your move wherever you are. And start working on your next big idea. Our world is continuously transformed by the innovation of business, but at pwc we believe that businesses can go beyond products or services to have a measurable impact. As a professional services firm, we recognize the role pwc can play in helping build the Financial Capabilities of the next generation. Our commitment to doing so, has helped our people make a difference, not only for our clients, but for our communities. Thats the responsibility of business, and one way pwc is making a better tomorrow. As you might guess, the market fell off the big attention grabber on cnbc. Com here with todays hot list, allen wastler. One of those phenomenons again, when the market goes down that deep we get a wave of traffic. Theyre all trying to figure out whats going on. They went to art cashin. They went right from there, say, okay whats going on in china. Chinas always looming large. They are looking at how china is tightening up the trade in their markets. China is saying the mark set okay. Contradictory cycles there. Jeff cox says buy high, sell low. That seems odd. No, hes talking about quality. Now is the time with stimulus going away to look at quality stocks, low debt high cash reserves. Those are my big three, kelly. Always looking for quality. Thank you. Hillary clinton launched her president ial campaign this week officially is concerned that voters are feeling hillary fatigue . Meet the press Moderator Chuck Todd joins us next. And banning selfies on the red carpet . Does the panel agree . You wont want to miss it. Back in two. It took tennis legend serena williams, fencing champion Tim Morehouse and the rockettes years to master their craft. But only moments to master paying bills at chase. Com. Depositing checks at the atm and transferring funds on the mobile app. Technology designed for you. So you can easily master the way you bank. All of the problems of the world could be settled easily if men were only willing to think. All of the problems of the world all of the inefficiencies could be settled easily all of the opportunities could be realized if we were only willing to see patterns in data we could never see before. To design a machine that thinks like we do. Track epidemics. Predict breakdowns before they occur. To become smarter every day. If men women machines were only willing to think. Big day . Ah, the usual. Moved some new cars. Hauled a bunch of steel. Kept the supermarket shelves stocked. Made sure everyone got their latest gadgets. Whats up for the next shift . Ah, nothing much. Just keeping the lights on. laugh nice. Doing the big things that move an economy. See you tomorrow, mac. See you tomorrow, sam. Just another day at norfolk southern. Welcome back. New Jersey Governor Chris Christie claiming he has not made the decision to run for president yet. But you might not be able to tell by the way hes speaking in public. Christie has been on the road this week hitting key political states like iowa New Hampshire and speaking out on topics like entitlement and legalization of marijuana. Chuck todd has been following this story from washington where he joins us now. You called christies talk on Social Security a hail mary. Explain that one. Do you think it will work . The problem is its an issue that the group of voters that care the most about it are republican donors the business community. Theyre the ones send about the longterm trajectory of the federal government and the debt and its obligations and things like that. Kelly, how do i translate that . I think hes struggling on the financial front. I think hes trying to see if he can convince some of the big Donor Network that right now is gravitating toward jeb bush to give him a second look and basically saying hey, look i will do a tough issue. I will take something that frankly nobody likes us to talk about, which is entitlement reform. So thats why it wreaks of that a little bit. Hail mary for him. I but as we get deeper into the campaign, these straighttalking moves seem to play less and less well especially when the debates turn to debates with democrats. Could this become a liability for the Republican Party more broadly going into 2016 . Well i think it depends. I dont think youll see a whole bunch of other candidates jump on to the specifics that Chris Christie look he came out with some very interesting specifics about what age to raise Social Security to benefits that would go away depending on how much money you earn. I think youll see a bunch of republican candidates kelly, so concerned about the toxic nature of that issue, yes, im for reforming it, too, but i dont know that those specifics. Theyre not going to want to sign on to hardcore numbers and what you raise the age to. We have a panel that has hillary fatigue. Do you have christie fatigue . I love the straighttalking approach. Any candidate that i would vote for, like Chris Christie has almost zero chance of getting elected. The idea that hes going ahead and talking about Social Security and entitlement is terrific. I love that. I also think it probably makes him unelktableectable. Is why this is more interesting, making fundraising more difficult if people think hes not going to be able to make it happen. Where candidates hear about this issue the most is with people that are with the big, wealthy donors who look at it and believe its a longterm problem that needs tackling. They would like to see they think any corporation would be tackling a longterm obligation like, so why doesnt the United States and why dont the leaders speak up on it . Thats why i call it a hail mary. Christie is saying ill be that guy, give me enough money to run a campaign. Hillary clinton kicks off her campaign this week. There is a sense of fatigue, maybe its just us in the media because weve been following this for so long. But talk to us about how you think shes doing in the wake of this scooby doo bus, buying at chipotle. Are we going to see more of this . You brought up the issue of fatigue. I think there is clinton fatigue in the media. Theres plenty of us who have covered them for 25 years. That makes it tougher on the Clinton Campaign to do things that arent immediately interpreted as calculating no matter how you look at it. I think us in the media, you have to be conscientious of that with any of them. In some ways jeb bush doesnt get the same benefit of the doubt as a candidate like a scott walker does, just for those same reasons. I do think it is more of a phenomena in the media. There was clinton fatigue in the rank and file of the Democratic Party in 2007. Thats why there was an opening for barack obama. Sure. That fatigue isnt there. You asked about the early days. I thought it was a great first day and a series of missed opportunities. I applaud her attempt to break out of the bubble. Okay . Applaud her attempt to go on a road trip. What did she do on the road trip . Nothing. She went to chipoltle and stayed a anone mouse none anonymous. Imagine if the stories were she asked me about what my number one concern was at home. We got none of that. It was a good idea, missed opportunity. Its a long campaign, you know . It sure is. People start seeing a lot of sitdowns and table top meetings and that kind of thing, chuck. Interesting take though. What do you have coming up this weekend on sunday . More president ial politics. In fact a new candidate that may be jumping in john kasich, governor of ohio. Well have the first interview with him. If he does that also terry mcauliffe, probably the biggest cheerleader in elected office for hillary clinton. A lot of president ial politics on the table. John kasich has passionate followers already. Well be watching literally. Thanks for being here this afternoon. Thank you. Chuck todd in washington. Two big medical conferences are kicking off this weekend. Up next what can we expect from the cancer and neutrology summit. Ysis is accurate . How do you make sense of it all . A simple unbiased stock score consolidated from the opinions of independent analysts. Is that too much to ask . Nope. Equity summary score powered by starmine, will help you execute your ideas with speed and conviction. And its only on fidelity. Com. Open an account and find more of the expertise you need to be a better investor. Welcome back. Thing fight against cancer and alzheimers disease will take center stage. Reporter coming out today ahead of this cancer conference expected to start tomorrow in philadelphia Bristol Myers one of the few stocks rising today after it stopped a trial of its lung cancer drug benefit because it showed a rate of survival. A lot of drugs are being watched from merck. Analysts will be watching a combo in leukemia drugs. As well as another area of immuno cardiology. Names like juno and novartis. Those are the ones to watch. Also a neurology conference kicking off in d. C. Tomorrow. Some data trickling out. Also some from Ptc Therapeutics which analysts could be one of the more volatile names. Then finally, some data from alnylam. A lot of data to watch, potentially a lot of stocks moving this next week. Do you think these events some of these drug diskoifrs are the catalyst for some of the m and a activity were seeing in the space right now . Absolutely. A lot of this Clinical Data is driving the excitement and driving these prices up. So youre seeing the valuations people are paying for some of these biotechs going through the roof. We saw one taken out for 20 billion for half of a leukemia drug. I just mentioned infinity. Something thats a combination. Thanks very much. Thank you. Following those conferences for us and whether you like them or not selfies have become a big part of our culture. A Film Festival is taking a selfie stance. They are banning celebrities from taking them on the red carpet. You won believe what our panel has to say. Well be right back. Excellent looking below the surface, researching a hunch. And making a decision you are type e. Time for a change of menu. Research and invest from any website. With e trades browser trading. E trade. Opportunity is everywhere. Honey, we need to talk. We do . I took the trash out. I know. And thank you so much for that. I think we should get a Medicare Supplement insurance plan. Right now . [ male announcer ] whether youre new to medicare or not, you may know it only covers about 80 of your part b medical expenses. Its up to you to pay the difference. So think about an aarp Medicare Supplement insurance plan, insured by unitedhealthcare insurance company. Like all standardized Medicare Supplement insurance plans they help cover some of what medicare doesnt pay and could really save you in outofpocket medical costs. Call now. With a Medicare Supplement plan, youll be able to stay with your doctor. Oh, you know, i love that guy. Mmhmm. [ male announcer ] these types of plans let you visit any doctor or hospital that accepts medicare patients. And there are no networks. You do your pushups today . Prepare to be amazed. [ male announcer ] dont wait. Call today to request your free decision guide and find the aarp Medicare Supplement plan to go the distance with you. Go long. I take prilosec otc each morning for my frequent heartburn. Because it gives me. Zero heartburn prilosec otc. The number 1 doctorrecommended frequent heartburn medicine for 9 Straight Years. One pill each morning. 24 hours. Zero heartburn. Welcome back to con Film Festival announcing its restricting selfies on the red carpet. The issue is timing. Weefl seen the weve seen the selfie stick. Even tragic events. The selfie phenomenon is every where. Is cannes doing the right thing . Usually they are in countries where they cant do a lot of things. Even in spain the running of the bulls, you cannot take a selfie. There are safety concerns. What is the safety concern walking the red carpet . I want to see the organizers of cannes tell brad pitt no selfie for you. Do you think brad pitt is taking a selfie. Im amazed who does take a selfie. Its amazing considering the red carpet as it now exists is a forum for pictures being taken. It has to be efficient. We have to get these people through for an important purpose. Its hard not to kelly, i know you are a selfie lover. And i have never even taken a selfie. I was tempted to do one right here. You can do one as long as its not a tiger or lion. Stay away from me. Im not doing a selfie. Weve turned into a horrible nation of selfpromoter. Its interesting im reading a biography of George Washington right now. I want to tell you how much america has changed. Back when he was elected as president , the first time. He was afraid of even appearing like he was running for office. It was considered unseemly back then. Now we have a nation where everybody is selfpromoting themselves all the time. How far weve come down. The whole time jefferson was doing an oil painting of himself. He was a little more washington also invoked the phrase of the inviable hand in his first inaugural address. He didnt say the invisible selfie. No he didnt. We got to go. What are we watching next week . Greece. I thought you didnt care about greece. I dont. This weekend at the imf i want them to kick greece out. Enough already. Im bored. Tons next week. The mortgage reaction to earnings. They have been positive ever each company on average has reported. So it seems we got expectations low enough. 81 days since we had a 2 move in the market. Today we didnt get there. Were overdid you for something more. Much ado about nothing miss kelly, miss selfie taker. People would like to know why. Thats what they are trying to figure out. Buy backs come back after the earnings are reported too. Shortly after earnings season people are saying that too. You have this window people cant buy back stocks. Theres a key player in equities. You brought up about bone. Government and everybody is involved in the market. You can extend it to equities. If you want to make the argument. You dont. Let me go take a selfie. That does it for us this afternoon. Before we close let me take a moment to wish a heart felt thanks and goodbye to our producer who is leaving us today and who will be very sorely missed. Were wrapping up on closing bell on this friday with a big week coming up. Time now to hand it over to the fast money crew. Coming up live from the Nasdaq Market site next. Fast money starts now. Big sell off on wall street. Heres whats behind the selloff. Worries about greek finances and sinking european bond yields spook the u. S. Markets. New recognizes weak earnings in the move of oil didnt help the situation. What we saw was pronounced decline in china down 5 on the chinese stock and for the week germany decline. For week idown by 5 . Which is a big move. Germany the ends to be more volatile than everything