Transcripts For CNBC Closing Bell 20150420

It is up 200 plus points because being cheered on by the reserve requirements in china. This is an internationally lyly oriented market right now. Is that the idea . I apologize if im repeating anything. Bill pointed out the dow is up 217. Lets skip straight ahead to the Closing Bell Exchange and introduce our guests. Joining us at the top of the hour to kick things off. We have price heedley, kate warren from edward jones. And our very own rick santelli. A welcome one and all. Anthony chan the big news this weekend, we have to talk about a china rate cut. The u. S. Central bank the japanese, whats the message to investors. Central banks all over the world are coddling Financial Markets, coddling the overall economy. Thats one of the reasons we dont get big corrections anymore. We get mini corrections. Right after the chinese announcement on friday that they were going to go ahead and restrict margin trading. The analysts warned and said the Financial Markets would melt down on monday morning. You get a much larger than expected easing in reserve requirements. In the United States we had a weak First Quarter. Bill dudley repeating the remarks, saying yes, there were a lot of things going on. If the Financial Markets dont handle fed tightening very much theyll go a lot easier. Of course he gave the usual suspects but what what we knew the usual suspects weeks ago. Why repeat that . Again, coddling the Financial Markets. Jeff kilburg, the volatility were seeing right now, down sharply on fears about greece on friday up sharply with china on monday. Should i be asking what traders are smoking . Did you see what i did there . Its a great point to illustrate. Here in chicago, i want to allude to the way my grandfather used to drive his car, two feet one on the gas pedal, one on the brake. Thats what it feels like here all due to china. They cut the reserve requirement by 100 base points. One of the biggest cuts since the crisis. That flooded the markets with 161 billion or trillion lewan, if you will. It represents 20 trillion of the 70 global trillion in stock markets. It moved it up over 1. 25 . The math doesnt add up. The emotions are high here in chicago. That 161 mini qe doesnt translate into the boost let alone in the global stock market, let alone the s p 500, bill. Kate what about you . What do you think about the impact here . Overall the market is more focused on earnings than it is on whats going on in china and whats going on in greece. Those pictures really havent changed very much. Certainly chinas reducing the reserve requirement is a positive. I dont think we would have seen this rebound solely on that. I think the market right now is certainly has concerns in the background but it focused on earnings. We saw better than expected earnings today, worse than expected on friday. I think well continue this seesaw. Do you agree, price headley, lets face it the volatility has been internationally oriented. Earnings matter but the headlines are still dominating this market right now, dont you agree . Its a headline driven market bill. Its a bit manic depressive on a daytoday basis. If you look at earnings, 76 of s p 500 companies are beating estimates compared to the usual trend of 70 . You could say thats low expectations, they had nowhere to go but up. Thats symbolic of whats going on with equities overall is still the place to be. A lot of people are scared. That means you get very quick snapbacks. People are willing to buy the dips quickly. It helps to have Central Banks coddling. I see the dow going to 20,000 before the end of the year. Whoa. I think its a relative value, p e ratio of 16. I think it has plenty of gas in the tank from here. Wow. Well come back to that in just a second. I wanted to mention oil. We have a couple headlines today watching movements out in the middle east. How much of a bid do you think geopolitical concern is put into oil here or is it rising on better demand . You know, i think its a little bit of both. I do have to say, traders on the floor that were looking at oil as a range, uncertain whether the definitive bottom is in had been thinking they would want to sell rallies. When you read about yemen in the middle east and some of the issues of the day with the United States theyre not turning into a buy dip mentality that is still looking at the oil market in somewhat of a range unsure, if its going to test sub50 levels again. With respect to foreign exchange, the new story emerging is that the chinese have their manage pegged in accordance with the dollar. As the dollar strengths by default, the relationship has been somewhat tainted. China is managing its slowing economy, better than quote, unquote, free markets. Ultimately how they decide where the yuan should be is starting to take on a bigger life. When they made those changes, we see the market response here. The bigger issue im asking you about is as long as other Central Banks are easing and it has the impact of the stronger dollar here in the United States, it lowers Inflation Expectations in this country. You know, were all expecting the fed to raise rates at some point. As long as theyre waiting for inflation to rise if inflation is not rising because of other countries easing will this buy implication mean the fed cant raise rates at the same time . The fed can make that distinction anytime it wants which makes trying to trade on the fundamentals so much more complicated. If we reverse that question and say have we seen a boat load of disinflation or hasnt it been rather steady starting to firm up on a yearoveryear basis, the answer would be yes. They can have it any way they want. It makes it more complicated to translate into a trading strategy. Anthony, you were shaking your head here. Energy prices for example, are up more than 20 from the bottom. I see price pressures creeping up up there. This is not germany. We dont have an export import mostly economy. We know that in germany 50 of that economy is exports. Here on a relative basis were relatively close. I agree with rick. The Federal Reserve canvases both of them. I dont think if china has deflation, which they dont, inflation is up 1. 4 yearoveryear. You brought up inflation here. Some of the forward Inflation Expectations are back above 2 in this country. Is there a turn in inflation that were witnessing here . I have no doubt. If you look at the university of michigan expectations for prices, already that is starting to show some signs of life. We see the anecdotal evidence that wages are rising. Im pretty sure in the next 6 to 12 months we wont be looking at a headline cpi of minus 6. 1 which we have now. Well move into positive territory. Were going in a northern direction, not a southern direction. Kate warren, i noted pong the ten s p sectors that we follow the two today, Technology Leading, followed close behind by utilities of all sectors. I mean which way do you want to go here . You have a growthoiented sector and a defensive oriented sector. I think id be looking more at technologies. Inflation is likely to continue to pick up a little bit. I think that does give the fed, as rick said, it could do whatever it likes. It gives the fed reason to begin to raise rates. That doesnt mean utilities do badly. The growthoriented sectors would do better. Its an unusual combination but its probably due to concerns that while were seeing china ease that slowing china actually means lower Interest Rates. So its that disconnect as well. Were seeing in other parts of the market. The last word to you, rick do you think the path of least resistance is lower or higher . Has it changed at all lately . I think the path of least resistance is sideways. If theres any move in a quick fashion of more than a dozen basis points i think it would be yields moving lower. Its going lower over my shoulder, kelly. You can hear them screaming in the pits. Is that what it is . Yes. Thats what i heard. Price here on record now, dow 20,000 by the end of the year. Well have you back. Well be talking about this. Thank you all for joining us today. 50 minutes to go into the close, mr. Bill. The dow is up 229 points. The s p adding 21. The nasdaq 66. It is a mirror image of fridays selloff, much more aheard on todays rally. Ibm posting results after the bell tonight. Well bring you the tech bellwethers numbers the second they hit the tape. What ibm unveils could set the tone for wall street tomorrow unless another central bank does something overnight, in the meantime. Up next, under armour shares hitting a record high. The pros debate if under armour is in nose bleed territory and if you should be looking at nike instead. Back in two. Man you run a business. Could be any kind of business. And every day youve got important decisions to make, like hiring. Where are you gonna find those essential people you need . With ziprecruiter, its simple. We post your job to over 100 job boards with just a single click, so you can reach millions of qualified candidates. Then well give you the tools to help you manage, screen and rank your applicants all so you can find the right one. Try zip recruiter for free today. Welcome back. Rally day on the stock market. The dow is now up 229 points 260 i saw at the highs of the session. The s p is up 21 and look at the nasdaq. We mentioned earlier the Technology Stocks are leading the way among the s ps, up 1. 9 almost a 2 gain there followed closely behind by the utilities, even the laggards, the Consumer Staples are up 0. 5 . All ten sectors in the green. Sharon epperson is tracking some of the biggest movers for us on this manic monday. Hasbro shares have been soaring, thanks to toys based on transformers and marvel comics. Michael kors taking a hit, its been downgraded from neutral to buy. And shares of callaway in the green, it has a buy rating saying market environment is likely to give callaway a powerful and sustainable comeback. Under ar thundershowermour getting a boost, the upgraded outlook comes ahead of First Quarter earnings before the opening bell tomorrow. Back to you. Keeping an eye on that one share. Thank you. Which stock is better in the long run, bill under armour or nike . Bert flickinger likes nike instead. Why, bert . Under armour is on fire here. Nike always wins whether it was jordan whether it was jeter, now with gene jackson running the business. Hes a genius along with phil knight. Nike is always victorious, took out reebok umbro, adidas, converse, they run the table every time. Look at some of the success theyve already had. Yes, sure. Certainly the success theyve had with their endorsements has been just enormous. The masters recordbreaking masters performance by Jordan Spieth super bowl mvp and likely nba mvp in curry. The under armour brand is on fire. If you look at nike, they generate 37 billion at sales. Under armour is roughly 4. If they can get 15 to 20 billion, theres well north of a billion dollars plus in annual Free Cash Flow. If you apply nikes potential Free Cash Flow the market cap could more than double from here. Wow. Are we making a fair comparison here gentlemen, of nike versus under armour . Is nike john necessarily the bogey that under armour is going after, do you think . The markets theyre growing in are growing rapidly right now. The Activewear Market domestically and globally is growing rapidly. Both companies are taking advantage of the pie. Two incredible companies with be two marketing giants and ultimately we think under armour has a massive opportunity. Ultimately we think under armour gets well north of 15 billion in sales. If you look from a valuation perspective at the three large cap competitors, pure play competitors in the apparel space, vf nike and hanes. Multiply under armour at 15 billion, 20 billion in sales by that multiple, the market cap could much more than double. Bert make the case for nike as an investor from here, to do something other than collect the cash flows that will continue to generate. Do you see Growth Potential . At 85 billion in market cap, how much bigger than nike get . Its a value growth company. Whatever under armour has undertaken, nike has prevailed. They can take technology and catch up to under armour quite quickly, the same way nike prevailed in american football then world cup football. Every single sport nike has taken on nikes always been the clear winner under armour is a very good company but in the long run, everyones always placed bets on nike to win and its always won. That hasnt been the case with nike competitors. What about johns point, though, the pie is growing . Is it necessarily a zero sum game, if nike wins under armour loses . Its not a zero sum game. The share that under armour and nike will get will come from adidas, reebok, umbro, gappage gappage gap athletica. Thank you for your thoughts today. Thank you. Appreciate it. I thought we had joe kernen coming on to talk to us. I had to keep hesitating before i said johns name. 40 minutes to go until the close. Were pretty much near the highs of the day. A strong snap back from fridays broadbased selloff. A lot of discussion on what is driving this spectacular rebound. Mobilegeddon, google changing the way it ranks search results and Small Businesses especially run the risk of getting left behind with this new algorithm. The pros tell you what you need to know about this. Thats coming up on closing bell. Stay tuned. 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Now i have less diabetic nerve pain. And i love helping first graders put their best foot forward. Ask your doctor about lyrica. Welcome back. All ten sectors of the s p 500 in the green today. That index broad market up 1 today or 21 points for better than 2100. 2,102 to be exact. The dow adding 226 points the nasdaq up 66. So the strength today is pretty broad based. I happen to know by the way this is the best day for the nasdaq since january 22nd. That will do it. There you are. That bill, that were looking at as discussed, the s p 500, not a lot of red on that board. Hasbro is the best performer. Follow by csx and amazon. And i cant see what the worst performers are. Well get those for you later here. We do know google a lot of Tech Companies having a strong session as well. Google in the news for changing the way it lists searches if a website is mobile device friendly will be ranked higher than those who arent. Some are calling this mobilegeddon. Interesting development here. Lets talk about it. Aaron shivers, chairman and ceo of patriarch equity. Good to see you both. Thank you for joining us today. Good to see you, bill. What do you make of this . Now they want to move more toward mobile makes sense doesnt it . Theyre very smart. What happened in 2013 they recognized that mobile was going to be the future. They gave advertisers the ability for really nothing to if you advertised via the web that you would also be able to get mobile. What happened was, the negative implication is that that drove down click costs. People saw that advertisers saw that it wasnt converting as well. So what they recognize is to stay dominant they have an 87 position on mobile search is that theyre better off making sure that businesses are changing the experience so that you get higher conversions. Thats whats behind this overall mass website massacre if you will thats coming. Welcome. Its great to see you. Listen, i wonder how much this tells us not only about googles dominance in mobile search but the fact that quite frankly people arent using mobile search so much to transact. Is there weakness that google is responding to within their Business Model . Can you hear me . Yes, go ahead. I think eric hits on the key point here which is people are searching from their smartphones. Google executive said last year says he wouldnt be surprised if the queries on smartphones passed thepass ed queries on personal computers. When we click on links, we arent getting the experience. The text may be too small. The links may be too close together. These websites arent always designed for a small smartphone screen. You may not convert as well or buy something. And thats problematic. As a result people arent spending as much money for the mobile clicks. Rolfe, you said a company like aeropostale may find its results are no longer as prominent as they were. Why is that . Exactly. The other interesting thing about this particular change is google its unprecedented, google gave everybody a huge warning. They said this change is coming april 21st. They never do that. They never give you the heads up. They also gave people a test tool. You can see which sites are friendly or not. If you type in aeropostale, for example, it says its not mobile friendly, its not ready for this change. Which is interesting. Youd think its mostly mom and pops but some big sites arent as well. As i read through all of this this the question that kept coming back to me my goodness look at the power that google has in all of this. Do they have much power . If they had meaningful competition, would advertising costs go down lower than right now, do you think . Sure. Its ultimately about the fact that theyre able to capture the eye balls and theyre capturing the streams of people. But at the end of the day, google is really helping Small Businesses because smartphones are not going away. This is where consumers are going to be. To the extent theyre motivating consumers to make or advertisers to make their websites more consumer friendly, that means businesses will make more money. This ultimately youll look back and say this was a driver behind Small Businesses helping them to dominate more on the web. Which is a great thing for the u. S. Its a great thing for small business. Helping them to dominate more, eric . Absolutely. Absolutely. Because to the extent that a consumer comes to a site and they the experience, theyre more apt to use the experience then theyre more apt to spend money with those Small Businesses. Where right now theyre clicking off or theyre only spending a small amount of time because its not assen fromly as an amazon or another site thats been built directly for them. This will put the own usnus on a lot of Small Businesses who are trying to do other things at the same time, to update very quickly and use one of the clients that theyre relying on. Can they be so confident that thats going to happen that theyre not just going to get swept away . Yes, because the cost to switch over these sites is demin muss. De min demin demin diminimous. They want to give potential customers a great experience. Weve been wringing our hands over the Small Businesses how it will affect the Small Businesses. We were faulting the ipo for not having a good mobile strategy. Now they do. We have to look to the future and the future is mobile. These Small Businesses, in order to survive, will have to go there, arent they . Absolutely. You can say this is a change that google is making that will benefit consumers. They do this once in a while where they try to encourage certain kinds of behavior among website developers. They can do that. Google has amazing amounts of power on the web. If youre not seen on google youre not really seen. Theyve encouraged websites to use encryption, for instance. They want to make sure that users have a good mobile experience on their devices. They also have to do this by the way, for their own business. People on smartphones, were spending most of our times in apps. Apps are walled gardens not connected by links. Keep in mind that for all of googles innovative basically their reputation for innovation the one thing the only thing theyve really done that macks them money is follow links around the web. And thats something well have to make sure they keep doing. Thank you. Eric schiffer. Thank you. Two defense officials telling nbc news that the Aircraft Carrier uss Theodore Roosevelt sailed through the straits of hormuz on sunday heading towards yemen. The carrier along with eight other u. S. Navy ships is tracking a convoy of iranian ships that u. S. Officials suspect could be carrying weapons to yemen. President obama held talks with the crown prince of the United Arab Emirates at the white house earlier today. The president looking for support from arab states. New Jersey Governor Chris Christie might be considering a run for the presidency but hes not apparently impressing voters in his home state. 56 disapprove of the job hes doing, according to a Quinnipiac University poll. That would be his lowest Approval Rating ever. Willie nelson jumping into the movement to commercialize marijuana. The singer songwriter plans to create his own brand of cannabis and intends to make it the best on the market. He will grow and sell willies reserve and sell in two states where that drug is legal. Thats the cnbc news update at this hour. Im going to leave that alone. Come on. Its going to be interesting to see how successful he is. If there are two people who will benefit from the legalization of marijuana around the country, Willie Nelson is one of them tommy chong is the other one. I was going to say snoop dogg. Theyve based their reputations on that. Well keep track of. Happy 4 20 everybody. The dow is up 225 points a strong session. The s p adding 21. Nasdaq up 66. Up next the pros will tell us how long they think the rally could last and wait till you hear what is toing the list of concerns. Were back in two. M] drivers to your marks. Go its chaos out there. But the mclass sees in your blind spot. Pulls you back into your lane. Even brakes all by itself. Its almost like it couldnt crash. Even if it tried. The 2015 mclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. [ girl ] my mom, she makes underwater fans that are powered by the moon. She can print Amazing Things right from her computer. [ whirring ] [ train whistle blows ] she makes trains that are friends with trees. My mom works at ge. Holding on to decent gains today, the dow up 219 points right now. With the s p up 20. But the big performer so far has been the Nasdaq Technology the leader among all the ten sectors in the s p up 64 points right now. Very close to the 5,000 level. Theres the russell, the small caps up another one plus percent. Look at the transports. Even with Oil Prices Moving higher transports up 8. 1 right now. Lets get more on how much more this rally could win. Good to see you both. Thanks for joining us. Michael, were attributing the rally to the move in china over the weekend to reduce the reserve requirements for their banks. Is it that or simply somebody came in and bought the dip from friday . I think thats it bill. I think its a relief rally. I think china strikes me as schizophrenic. After they closed their stock markets on friday they increased the margin requirements, so they made it more difficult to buy. Right. And they increased the amount of stocks you could short. That then saturday night, sunday morning we wake up and find out theyve lowered their requirements at the banks. The punch bowl is back at the party. I dont know if they were messing with World Markets or looked up and said wait a minute, we have to have growth sizzling markets, because thats the chinese thing to do. They got us back to the ball game again. The main point is we are still trading around the world based on government intervention. China took it away china gave it back. This is a china relief rally in my opinion. Jim, do you agree, this is all central bank fueled . I do agree, central bank fuel has been primary in the market not only china but the ecb, the boj and the fed itself with the obsession of when to raise rates. Earnings are not looking that good. Theyll be down on a yearoveryear basis. Were quibbling about how much theyre going to be down but theyll be negative. Most likely the Second Quarter will be negative because thats what the forecasts are for the First Time Since the great recession. You dont have Earnings Growth. What you have are easy Central Bank Policy around the world and maybe the fed on hole. Those are cancelling each other out. Thats why you have a zero return in our markets this year. A zero return . Yes. Were at zero right now, up 1 . Most of that was because of today. You dont see dow 20,000 by the end of the year . Unless we get Earnings Growth. We need earnings you have a forward p e, high 17 p e. If you dont get Earnings Growth, i heard the dow 20,000 forecast. I just dont see it right now. Michael, what do you think . This is jim being logical, okay . Jim is a very smart guy. Hes being logical, making sense and looking at data. Markets be with im going to Say Something risky if youre an investor markets dont always look at data and markets dont it the always care about the facts and the figures. Are you saying markets are irrational . There we go, bill once again, totally with me. Look greenspan when he talked about irrational exuberance at dow 6,000, wasnt wrong that the stuff was expensive but he was wrong in the sense that eight months later we were at dow 8,000. Federal reserve chairman gets it wrong by 33 in an eightmonth period. The data are there. But the fed is still at the table. And the fed michael, are you saying the trend quite clearly is higher . How much higher . Yes. Do you think dow 20,000 this year sounds reasonable . Im saying that its possible. I could also tell you that a down 20 move could also be possible. We really dont know. But what we really have learned is that its going to be dependent on the fed. If they continue tightening policy yes, stocks could go lower and jim could be absolutely right. Theyre coming down for future quarters as well. What other concerns do you have . We were teasing that you have concerns otherwise for this market. What are they . I think one of the big concerns for this market is valuation. Michael is right. Markets can stay irrational. When you start getting to valuations we are now lets say its either fully valued or slightly overvalue, it gets hard to push the market much harder. The fed could turn around and not raise rates. Maybe they could hint at easing if the Economic Data continues to disappoint. But were not there right now. So those are two bigger issues. I think europe is still an issue. I might be one of the few that thinks that if greece leaves the euro, that is a bad thing long term. Its not going to it be a story the next morning but i think over the long term to show that the euro is an unstable system where countries are coming and going left and right, even though it is just greece i think is not such a good thing in the long term and not in their best interest. Just before i let you go i heard a number of people id like to quickly clarify this, talking about the rate hike in june or september, ending restricting the rally, listen the last time the first rate hike was in 2004. We had three plus years of a stock market rally after that first rate hike took place. We also had 4. 5 growth and strong Earnings Growth. If you asked any of your guests in the abstract almost all of them would say yes. Thats wa we have right now. Almost all of them would say you still have to buy stocks anyway. Thats the problem right now. It is setting up to be a very difficult period for the market. All right. Understood. The real problem is, were trading still on Central Bank Intervention and not on earnings. If you look at the fundamentals the argument michael is making. Corporate profits have been great since the recession. I understand now they done the look so great but its not as if the entire thing is predicated on the lack of Earnings Growth. Corporate profits have done well and Earnings Growth has been positive but stock prices have been more positive. Theres an expansion in price to earnings multiples. The shares themself as a group have become more expensive compared to where they were six years ago. Fair point. When you have these conditions, it doesnt make sense in my mind to be chasing the highflying stocks the facebooks and the yelps of the world. You dont have to own stocks with solid Balance Sheets and not too much debt that are still earn earning real money and able to bring that money to the bottom line. Those are the stocks with which you can sleep at night and you may have to in a little while. Two smart guys, two different points of view. Thank you so much, guys. Thats jim bianco and michael farr from farr miller and washington. The dow is up more than 200 points. Well keep an eye on where that pressure might be as we head further into the close. The s p up about 19 points the nasdaq 61. We mentioned ibm well, we mentioned Tech Knowledge leading the market. Ibm is the second best performer in the dow. Well tell you the numbers to watch out for on ibm when we come back. New data showing millennials may be better at managing their money than their parents. Why . Heres the catch. Why is their net worth lagging . Sharon epperson to explain and give us some answers when we continue. Financial noise financial noise financial noise doug. Youve been staring at that for awhile, huh . Listen, Td Ameritrade has former floor traders to help walk you through that complex trade. So youll be confident enough to do what you want. Ill pull up their number. Blammo. Lets get those guys on the horn. Oooo looks like it is time to upgrade your phone, douglass. For all the confidence you need. Td ameritrade. You got this. Man you run a business. Could be any kind of business. And every day youve got important decisions to make, like hiring. Where are you gonna find those essential people you need . With ziprecruiter, its simple. We post your job to over 100 job boards with just a single click, so you can reach millions of qualified candidates. Then well give you the tools to help you manage, screen and rank your applicants all so you can find the right one. Try zip recruiter for free today. 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. Why do we do it . Why do we spend every waking moment, thinking about people . Why are we so committed to keeping you connected . Why combine performance with a conscience . Why innovate for a future without accidents . Why do any of it . Why do all of it . Because if it matters to you its everything to us. The xc60 crossover. From volvo. Lease the well equiped volvo xc60 today. Visit your local volvo showroom for details. Right now, Technology Leading the way, the top four stocks in the dow, kelly. Now they keep moving around. Cisco, apple, microsoft and the number one is ibm which is getting ready to turn out results at the top of the hour here right after the bell rings. Look at that the bar getting higher by the moment. The shares up 3. 5 . Morgan brennan joining us now. Lets start with morgan stanley, earned an adjusted 85 Cents Per Share for the First Quarter, 7 cents above estimates. Revenue above forecasts helped by higher bond and equity trading revenue. Their shares are up slightly. Shares of halliburton also getting a boost. The Company Posted better than expected earnings and revenue. Up 2 . Royal caribbean, cruising in other direction, reporting weak Fourth Quarter earnings and a lowering of guidance in 2013. It blames an increase in fuel prices compared to january. You can see those shares down 8 . Sun trust earnings beating the street by 6 cents, results helped by lower expenses and growth in noninterest income. But the one company as you mentioned thats on everybodys radar is ibm which does report after the bell just a few moments, analysts are expecting to see 2. 18 is per share and 19. 64 billion in revenues. That would represent a 13 increase from a year ago. Ibm has had the biggest positive impact on the dow today. Shares are up nearly 3. 5 ahead of those results. Back over to you. Thats quite a move. Morgan, thank you very much. Getting closer to the time of that Earnings Report due to hit just after the bell which will ring here in just over 12 minutes tile. A gain of over 200 points for the dow. Will stocks hang on to these hefty gains by the closing bell . Anything is possible in the final minutes of trade. Well maybe prove that when we come back, after this. [ radio chatter ] [ male announcer ] andrew. Rita. Sandy. Meet chris jackie joe. Minor damage or major disaster, when you need us most, were there. State farm. Were a force of nature, too. [intercom] drivers to your marks. Go its chaos out there. But the mclass sees in your blind spot. Pulls you back into your lane. Even brakes all by itself. Its almost like it couldnt crash. Even if it tried. The 2015 mclass. See your authorized dealer for exceptional offers through mercedesbenz financial services. Ten minutes left. Has cashart cashin stopped by . Indeed he has. Still up 210 on the industrials, s p up 19. Nasdaq holding on to decent gains ahead of the ibm Earnings Report coming up. Joining us now, Michael Jones and bob pisani is joining the mix as well. Michael, you think the markets are in a goalldilocks period. What do you mean . Its Strong Enough to keep the earnings going just strongly enough that the fed will be on hold at least through september and maybe december. Thats a goldilocks environment. The economy is Strong Enough to keep the earnings going but not so strong that it forces the fed to move faster than were ready for. We just heard people laying out a scenario for a 0 total return in equities. Were getting exactly what we thought. Most people expect the flattish year earnings are flat fed will raise in september greece is uncertain, china is slowing growth. This is a year for flat growth in terms of stock prices. Thats what were getting. Were getting churn, its a very narrow trading range. But so far, it hasnt dpis disappointed. Thats the key. Its been frustrating, its a little weird but were still within the trading range and not breaking out right now. Its frustrating for whom . Because if you look at the u. S. Yes, its been frustrating. But if you go overseas earnings in europe will be up close to 20 from the First Quarter. You are seeing the stock market up almost as much which means multiples, if earnings hit expectations multiples havent expanded which means theyre still very cheap for the u. S. We need to start looking overseas for the nest big leg of this rally. Youre heavily invested in the europe hedge investment etf, that wisdom tree did. Didnt you help design that etf . We did. We thought, if youre going to be short the currency delong the stock that will benefit from currencies. That means you want an export weighting as opposed to a market cap. That means you get automatic earnings boost with the declines in the euro. That means that our companies will do better than 20 in all likelihood. That etf has been on a tear for the last year or so. Is it overvalued right now . The dollar has stalled a bit here at these levels. I could only wish its been on a tear for the last year. Its definitely been on a tear for the last three to four months. The currency has been declining for at least a year. Youre dead right there. The stocks have just now caught fire. As i said earlier, if the earnings meet expectations just meet expectations, the price gains in the stock are completely validated by the earnings, no multiple expansion. I think you could see a lot of multiple expansion in europe. I think the trade could go much further. Were come back with the closing countdown with bob pisani and michael in just a moment. Ibm earnings could set the tone for tomorrows trade. Well get instant analysis from the pros the second those numbers hit. Youre watching cnbc the first in business worldwide. Its more than the cloud. Its security and flexibility. Its where great ideas and vital data are stored. With centurylink you get advanced Technology Solutions from a trusted it partner. Including cloud and hosting services all backed by an industry leading Broadband Network and people committed to helping you grow your business. You get a company thats more than just the sum of its parts. Centurylink. Your link to whats next. 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. Welcome back. Lets review this volatility weve seen in the dow in the last three trading sessions here. We have a quick chart to show that. Coming off those highs of thursday, the big selloff on friday, down 279 points on the industrial average and then todays rally, we were up 260 at the peak now up 209 as we go into the close. Thats a lot of volatility there and for various reasons. Bob pisani can address the confusion its causing. Wti Oil Continues to march higher. Were comfortable, though 60 65 on brent north sea. The stock were watching right now, the best performer in the dow, will be reporting earning at the top of the hour ibm with a gain of 3. 6 . A lot rying here theyve had problems with their Hardware Services business theyre transitioning to the cloud but it hasnt been easy. That stock up now to 166. 59. Back with mr. Pisani and Michael Jones one against. Bob, you mentioned earlier, a lot of confusion with the wild swings. One of the problems michael, is the confusion thats going on in china. The authorities are sending contradictory signals. Its confusing people. The Monetary Authority is saying well stimulate the economy. They cut the reserve rate. A guy in china wants to buy stock. Thats a cue, go buy stock. Regulatory authority, the guys who run the stock market are saying were concerned about stock market bubbles. Thats why to ban margin financing and overthecounter stocks on friday. One is saying do one thing, the other is saying do another. Thats where the confusion is. Its representative of the fact that china has gotten to the end of their borrowing build Economic Growth model. What theyre doing now is try to do that old borrow bit, lets lower the reserve requirement, making it easier to get access to credit but theyre desperate to avod a stock market bubble. Theyre trying to use the Monetary Policy to get lending into the real economy, the regulatory policy from trying to keep it from going to the stock market. Its a Central Authority economy. Theyre micromanaging the economy and stock market. Its not an easy thing to do. They think they have the levers and they maa cairn make it work. Im really pessimistic in all honesty that china can pull this off. Very quickly, michael, since were waiting for ibms earnings, do you like that stock . We think ibm has a great Business Model. Their Cloud Strategy was a little late to the game but they are starting the game. Its something were always watching. Like cisco, their biggest problem, same problem cisco has, smaller, nimbler competitors eating into their Software Space that theyve traditionally dominated. Even the services space. We have to go michael. I have a bell ringing in just a second. Stay tuned now, well get the ibm earnings. This should be interesting, set the tone for tomorrow as well. Thats coming up on the second hour of the closing bell. See you tomorrow, kelly. Thank you, bill. Welcome to the closing bell, everybody. Im kelly evans. What a session on wall street. Still strong names across the board, the nasdaq up 1. 3 adding 62 points just below that 5,000 level that weve been fluctuating about for a couple months now. The s p up almost 1 . Closing right at 2100 on the nose. The dow adding 208 points thats good for 18,035. Joining me now, cnbc contributor evan newmark, sara eisen and Steve Liesman. Also with us is fast money trader guy adami. Welcome to all of you. Lets start with whats pushing this market around today. A mirror image of friday. Ibm was super strong maybe earnings playing into that as well. Expectations going into ibm which i know were expecting any minute. Best performer in the dow. It started with the china news evernight. It didnt take chinese stock markets up because there was concern about the margin requirements and the new rules implemented friday when that market was closed. Helped us ease into the idea of policy coming from around the globe, lifting this market up. Its an earnings story this week. You had some speakers. Steve is watching that. There have been hasbro has good numbers. Morgan stanley had pretty good numbers. At least on the bottom line. The Revenue Growth is elusive. It is still there, is that the message from bill dudley . I suppose so. Im not a believer in this up 200 points. I have no faith that tomorrow we wont be down 150. Put a couple good days together maybe the market is believing in a Second Quarter turnaround. Theres not economic fundamental data, theres not earnings fundamental data that makes me bullish on the stock market here. Whats pushing this is a bunch of overcaffeinated momentum changers here. I think evan is one of them. You know i am not an overcaffeinated im quite the pop sit, in fact youre lucky i showed up, kelly. On friday you were sleeping. Some of your guests told me it was the end of the world on friday. Right. I was told it was the end of the world by several people. I think my phrase was much to do about nothing. Then we come in today and today was just you know, a little come comeback from friday. Its always about something. Any one session does not tell us the future but after we stack up a number of them were starting to learn something in one direction. I think its what weve been expecting for the last few weeks. Well see whether the economy has spring in its step come april and may. And if it doesnt, well have a totally nothing year and well be lucky if the stock market ends higher than it ended today. You sound like ken bianco. I think it does depend. I dont think things are as bad globally as everybody tends to think they are right now. If theres going to be a surprise, it will probably be to the upside. I know youve been more cautious. Do you see anything in the tea leaves that point toward a brighter period for growth here as we move out of the First Quarter . Ive been caution in terms of whats been going on globally. Ive said a thousand times, doesnt mean the market cant go higher and wont go higher that thats what were seeing. Transport actually showed strength. The russell, the iwm, as long as that stays above 121, the s p moves to the upside its intact. You have one of those two things working. Looks like we might have put in a shortterm bottom in the transports. All good things would be bullish for the broader market. Guys guys. Go ahead. Is there anything that tells you about todays trade that continues tomorrow . No. Weve been rocking around this 17,800 to 18,200 on the dow. You come in one day, its down 150. The world as evan suggested, is coming to an end. Go up 200 points today and all of a sudden happy days are here again. Im not buying it guys. You said it right at the top when kelly came to you. Youre not confident that tomorrow you wont be down 150 to 180. You have to be market agnostic. Look at the things that matter to you. Everybodys metrics are different. We all look at things differently. The way i look at things though, the russel is leading the way in terms of momentum to the you side. That has held in really well despite a couple relatively bad days in the s p. True true. If you can get the transports to come back to levels we saw back in october, november the next leg higher should be in the s p. How do we learn that it pays to buy the dip . Were flat for the year on the dow. Coming off a brutal week and day on from i, you see a rally like this. Perhaps it is this global liquidity shot we got another shot in the arm over the weekend, a surprise one, in china. As well as that is slowing and youre still in a zero Interest Rate world there are a lot of people collecting dividends in the market that are giving them a better return than anything than can get in fixed income. I step back. Its kind of rare to see wall street have we have had a run of excellent years for equity investors. I understand it came off a terrible low and all that. But if you look at the chart, i mean the stock market since there was one bad time in the summer of 2011 and since then the stock market the s p at least has gone like this. Like i got on friday from robert humm he sends out wonderful internal memos about the level of the dow. The note on friday said we wiped all the years gains on the dow jones. All i can think of is faulkner. We cover every up and down this is our job. We look for the signals. I think an important point, steve, this goes for the viewers, is their time horizon. I know a lot of people who watch the show want to know day to day what the market will do or even week to week or month to month. You have got to take a multiyear horizon if you dont take a multiyear horizon, youll drive yourself bananas. Anybody who watched friday thinking that today would tell them something different. For anybody well hold this off. For anybody looking to get in theyre constantly paranoid its going to be the end, they missed it or what have you. Lets hold this discussion for a moment and gets to the results for ibm. Josh lipton has the numbers for us. Hi, josh. Well kelly, ibm just reporting. Lets get you the numbers. Ibm reporting 2. 91 on 1. 5 billion. The street was looking for 2. 80. It looks like revenue from software, 5. 2 billion, hardware 1. 7 billion. That Conference Call kicking off at 4 30 eastern. Well be on it kelly and bring you headlines as they come. Back to you. Joshua thank you very much. Ibm shares popping hire after hours on top of the 3. 5 move they had today, despite what looks like a revenue miss. 2. 91 versus 2. 80 the street was anticipating. Morgan jobes us now, dan. That means theyve done better than 10 yearonyear Earnings Growth, correct . Yes, kelly. Thats a surprise. 2. 80, they topped it by a wide margin in terms of earnings per share. They were light on revenues which seems to be ibms biggest challenge. It will be interesting to see what the reasons were behind their ability to do so well on the bottom line in terms of earnings that they thought more share back, was the sales being impacted by currency issues . Just initially looking at this report it seems somewhat positive. It looks like maybe it leaked out a little bit. The stock has been trading up all day. It was up over four points when i left the office to come to the studio. It looks like a good Earnings Report in terms of bottom line. In terms of bottom line, i just want to stay on this point for one second. This company to some extent has been the poster child for returning capital to shareholders. I wonder what the earnings numbers would be would we see double digit Earnings Growth if it wasnt for the massive buy back program . Theyre pros at taking share back buying them up lowering that denominator and driving up the epps with very little top line growth. Thats been the recipe for quite a long. The street has accepted it up until the last couple quarters. It looks like it might be somewhat of an everything neared quarter. It could be they were able to mix their products a little better and gear more towards areas that have higher margins Like Software which is almost twice the margin thats in hardware. Just initially look at the numbers, kelly, they just hit the line. It appears to me that there could be engineering going on to get that earnings per share up as much as they did. I want to hear from guy adami. Naming a couple of the revenue numbers that the company highlights, cloud revenue up more than 75 on an adjusted basis. Up 60 otherwise. Business analytics revenue up 20 on an adjusted basis. Trying again to emphasize where the company is going. You unsounded like me real quick. Youre talking about the poster child for financial engineering. Real quickly, what is the right multiple for a company with declining business. Three, four years ago, the reason i owned ibm is amazing visibility in terms of earnings and they had a tremendous recurring revenue stream. Now their businesses are declining. Eps, yes, we talk about the buy backs. They continue to miss on the revenue line. Whats the multiple for this type of company . I would 9, 9. 5 theyre going to earn 16. You do the math. Its a 145 stock. I think the market will fade this rally were seeing in the postmarkette sometime tomorrow. Steve . My question to you, not being a stock guy myself is the idea of whether or not you believe in ibms ability to reinvent itself . Is this a kodak story, which i dont think it is. Or is this Something Else . Theyve reinvented itself as technology has changed. It doesnt turn itself on a dime like a tanker. Can it reinvent itself . Yes. Sorry, steve, my ear piece went out. I think they have the ability to reinvent themselves, yes. As youve pointed out theyve done that over the last few decades successfully. The world changes much faster now than ibm is capable of change. You just said it, they cant change on a dime. I believe the world is passing them by. They continue to buy back stock at a record pace the only reason youre seeing the stock rally, the relief rally today. I think theyre a declining business. Dan, last word here before you go. Why are you a share holder in this can company . Is it because you see Growth Prospects you can highlight for us . Kelly, it goes back to what youre talking about. You look at late 80s, they had tremendous competition from foreign competitors, reshuffled the cars got more into services. We had the big explosion in terms of Client Server network. The migration off the units into the cisco, intel, microsoft model. They reshuffle, got more into software. We hit the dotcom double and implgs tjs spend i. T. Level dried up. The big data and the cloud, when that hits that Inflection Point of 15 of total revenues in every other situation where they have emerging businesses Like Software and services, youns you hit that 15 , you go the engine starts to go the battleship turns and theyre moving. Just want to point out the margins were better. At the top of the press release, they do point that out, 48. 2 , up from 47. 8. Its an expectations game. Its up 3 year to date. Its obviously going to be a big ship to turn around if they can do it. Its all about nearterm expectation with the results and these appear to be better. Shares are rallying. Theyre off the highs after that report, still in positive territory. Your point is well taken. Thanks for being here guy adami and rest of the crew coming up on fast at 5 00. Thanks to dan morgan as well. Straight ahead, u. S. Stocks. Up next what that means for chinas red hot stock market and in turn stocks right n. E. A. R. In the u. S. Former new jersey governor jon corzine reportedly launching a hedge fun. The panel has plenty to say about this one coming up on the closing bell. Youre watching cnbc, first in business worldwide. With millions of reviews and the best hotel prices. Book your next trip at tripadvisor. Com today. [ male announcer ] we know theyre out there. You cant always see them. But its our job to find them. The answers. The solutions. The innovations. All waiting to help us build Something Better. Something more amazing. A safer, cleaner brighter future. At boeing, thats what building Something Better is all about. Welcome back. China commanding attention again today. The countrys central bank made a big cut in the countrys Federal Reserve requirements. Joining us to discuss, eunice yoon yoon. What a day to be here. Its as if youre coming over here the same way the impact of the moves are sending the market here to 200 points. Is that logical . It was a big move. A loot of people were talking about what we know and what is clear is that the policymakers are much more nervous than they were six months ago, just because of the Economic Data thats been coming out and the fact that in january and february, we thought there was going to be bad data and in march we thought there would be momentum and uptick. After that a continuous momentum rolling in the right direction. We saw a bit of a tapering and thats one of the reasons former treasury secretary hank paulson came out last week i think he was promoting a book he is. He talked about he came out and said basically, listen you can play monetary games here. The Chinese Government can play monetary games but at the end of the day there has to be structural reform in china. Yes. Do you think they believe they can get away with fiddling around with Monetary Policy or do you think theyll attack some of the structural elements that are going on in the chinese economy . It looks as if theyre attacking some of the structural issues. One of the arguments that have been made is that the economy cant progress without some of the structural changes. Anecdotally, weve been hearing about some measures that are being put in place. If you look at the stimulus measures they are taking now, this 400 basis point cut, its a big move but at the same time its not big like it was back in 2008 2009. They are still much more conservative than they were in years past. We are seeing that the authorities are comfortable with a certain level of slower growth. But what was a little bit disturbing this time was that the commentary that was had in q1 gdp was that jobs and wage growth were going to be very important indicators. And at that time they said okay, wage growth and the jobs market is actually holding up. Now we have this big move. I wonder how comfortable the authorities are eunice with the stock market shooting straight up. 40 in three months almost 100 in the last 12 months. Then you saw moves like what happened on friday which impacted the stock market and went lower today. How sensitive are the authorities to this idea that its a oneway ticket higher for chinese stocks . Theyre very sensitive to it. They dont want to have the margin trading getting out of hand. There was tightening about margin trading on friday also that announcement about how theyll make it easier for shortselling stocks. The signal was that the markets could go up but it could also go down. That was one of the reasons why you saw a lot of what does this mean eunice for the Dollar Yuan Exchange Rate . Thats a potential weapon they could have to help stimulate their economy. It is fraught with geopolitical tension between the United States and china that you think theyd be reluctant to do it. The authorities have already said they dont want to use that as a weapon in order to try to make the exports more competitive. But another issue with the currency is that the government has made it quite clear they do want the yuan to become an International Reserve currency and that they are hoping that the imf is going to make announcements sometime this year. So thats another reason why youre seeing a lot of activity in terms of the stock market. They want the hong kong stock market and the shanghai stock market linked to be away dont they have a long way to go before its an International Exchange in terms of opening up their Banking System and their currency to International Trade . It is its definitely a long way to go at the same time, theyre moving quickly. Everyone was surprised at the amount of money that is moving in and out of the Shanghai Hong Kong market. A lot of that spilled over to hong kong. The government has been pushing the equity rally. And i really seeing it as a way to create wealth in the country because the Property Market hasnt been doing well. The Wealth Management products which have been seen as an interesting way of investing and getting return on roi, thats actually not really as much of a viable option. I hope it works better in china than it does in the u. S. They may learn it doesnt exactly work the way you want it to. Eunice, thank you so much. Our eunice yoon here at post nine. Jon corzine reportedly making a return to finance, this time by opening a hedge fund. Remember this is his old firm, mf global collapsed after making risky bets on european debt. Who is better at managing money, millennials or their parents . You may be surprised at some of the results. Back in a moment. Very good. You see something moving off the shelves and your first thought is to investigate the company. You are type e. Yes, Investment Opportunities can be anywhere. Or not. But you know the difference. E trades bar code scanner. Shorten the distance between intuition and action. E trade opportunity is everywhere. Welcome back. Partnering up with the rich and powerful, not usual but how much fuel that recipe has when you have a partner that oversaw a colossal investment collapse. Jon corzine is reportedly launching his own hedge fund. Were joined now by Andrew Stillman and the managing director at wedbush securities. How much capital do you think he could raise. Thank you very much kelly. I dont know if he can raise any capital but jon corzine was lucky enough to be the senior partner at Goldman Sachs when they went public. He doesnt need to raise any outside capital to start a hedge fund. Its almost shocking that even this discussion would be taking place. Hes about as radioactive as chernobyl voil right now. Whats next . Are we going to ask the captain of the exxon valdez or the captain to charter a party boat for us . The issues against him are not resolved and extremely problematic. Can i mack a completely whats the right word unpoliticked observation here . The very trades that he was involved in that got him in such trouble ended up being profitable. They were massively profitable. I dont know what the charge is with the Justice System and the civil system this is money. The trades he was making were the right trades. And absolutely scott . Didnt they get it all back . Hang on hang on, one at a time. Scott. Youre completely right. Ive been a trader for a number of years. The trades that jon corzine was in european sovereign debt trades, they were really good trades unless the market is really against you. And thats basically what happened. Let me just a billion dollars of klein the money missing. Theres a billion dollars of klein the client money missing. Hang on. Andrew. Tnz tonight [ talking at once ] i want to be clear about this every trader always says my timing was just off. Thats the story with jon corzine. Any trader knows that you know timing when it comes to being a trader timing isnt anything. It is everything. Were not debating his skill. I understand. Heres my take. On wall street they will always there are people greedy enough always to give you a second act. Go back to ltcm all the guys in greenwich nearly blew up the entire Financial System John Meriweather turned around and raised money for another hedge fund. Jon corzine his hedge fund did close a few years after that. If johnn corzine is cleared by the authorities, he could raise more money. Maybe its not such a good thing on wall street but a trader that can lose a lot of money is somehow perceived, many times, as also a trader who can make a lot of money. One fact here. Lets establish one fact, scott. The latest story i read i dont know that its the right story, said they found all the money and paid back all the clients. Is that accurate . That is accurate. It went missing is the problem. All the money was eventually found. It was found and paid back. The thing was, i knew a lot of mf global insiders. The money wasnt really missing to begin with. After mf global went under, the customer seg fund money was people knew where it was, it just wasnt at mf global. You know it was at clearing banks and places like that. You can answer this probably. He might not even legally be able to file for hedge fund status and raise money until the investigates are over with. Thats true. The 64 billion question if you are responsible for pension money, would you trust your money with jon corzine given what theyve alleged under civil charges, only allegations, but it reads like a stephen king novel in the terms of the parade of horribles, nobody who was a fiduciary with client money can turn money over to jon corzine with a conscience. He sounds like he can do it. There are enough greedy people out there. A 68yearold man, why would he want the aggravation of doing this if hes worth several hundred Million Dollars . Time now for cnbc news update with sue herrera. Hi sue. Heres whats happening for you this hour. New York Governor Andrew Cuomo is in havana meeting with cuban officials. The First American governor to visit cuba since the recent thaw in relations with the communist nation. The trip is men to the foster greater ties between new york and cuba. The findings from the latest Customer Satisfaction index found jetblue delivered the best Customer Service among the Major Airlines last year followed by southwest. Overall, the report gives the Airline Industry a score of 71 out of 100. The fourth worst among all industries. The federal government wants to remove most of the worlds humpback whale pop laying from the endangered species list. The National Oceanic and Atmospheric Administration says protection and restoration efforts have led to an increase in humpback populations in many areas. And its official the Philadelphia Eagles have signed quarterback tim tebow to a oneyear contract. No financial terms were disclosed. Tebow hasnt played in a regular season game since 2012 with the new york jets. He work as a Television Analyst last year. And thats the cnbc news update for this hour. Back to you, kelly. All right, sue, thank you very much. We flip it over to Morgan Brennan for an earnings alert. Lamm research q3 earnings beat equipment ongz the toparnings on the top and bottom line. The company also offering strong Current Quarter guidance better than the street was expecting. For those reasons were seeing shares of lam Research Trade up 8 in afterhours. Were seeing green on wall street today. Are the gains enough to heat up the hot list. Also dr. Oz battling back against critics that claim he endorses quack claims and cures. Oil, google and fast food. Were checking in with allen wastler. Patty is covering this big Oil Convention in texas. Take a look at how the u. S. Has changed since it became the swing state for oil. Our readers are loving that one. Theyre also loving the mobilegeddon piece. All these Small Businesses are freaking out because googles changing the algorithm. If you search on mobile mobile friendly results. Hey, where should we eat . Its going to favor the restaurant with the mobile friend friendly spike. Were seeing a lot of action there on the website. The cost of opening a franchise, we took a look at the top ten franchises how much in terms of Franchise Fees . You also have to have a certain net worth and also royalty fees and initial investment. What it would take to open up that mcdonalds. Its going to cost you quite a bit. On the other hand the average mcdoneled as returns scdonalds gives back 2. 5 million. A number of people ask, how much would it be to open a chipotle . Allen wastler, thank you. Appreciate it. Millennials say their overall financial situation is much better than a year ago but their net worth is dramatically lagging other age groups. More importantly, how can it be fixed . And yahoo headlines, another busy day after the bell. 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. Millennials may be better at managing their money than their parents but they do have one great weakness. Our Senior Personal finance correspondent Sharon Epperson is here with more. Its not just the parents, millennials range in age from 18 to 29 years old are faring better financially than all other age groups. An important factor contributing to the sentiment, 32 of employed millennials report higher job security than a year ago. While only 23 of employed americans feel more secure about their jobs. Job security is giving them the means to save more. 30 reports their savings are in better shape than the past 12 months. Thats more than double the percentage of those 50 and over in their parents age group. 33 also report their overall financial situation has improved in the past year while only 19 of those 50 or older say their finances are better than a year ago. They are lagging behind in one important category. Their network. The age group that fared the best was the 30 to 49yearolds 30 of them report a higher net worth than a year ago while only 18 of millennials could say the same thing. The Study Suggests that while millennials are doing well financially, their net worth is held back because they are not investing in the stock or housing markets as much as other age groups. Theres an interesting fact. Thank you for the information on the bank rate survey released today. A surpriseing headline. Some of the folks are saying theres no way millennials are better at managing money. Are they really . Theres a widespread misperception that millennials are all buried in student loan debt, cant get jobs and are living at home with mom and dads. We get a much different read from millennials. The job security numbers are off the charts relative to other age groups they got the memo on savings. Were seeing behavior from millennials that show an inclination to save more so than their predecessors. One thing is millennials are more likely to have money tucked away than the next age group up, those 30 to 49. A lot of the behaviors that were seeing from millennials body well not only now but the decade to come. I interpret this in a very bullish way. I feel like im wrong. I feel like please tell me greg, that all these people are not saving money simply because theyre living in their parents basement. Is that why theyre saving money . Or are they saving money because they have goodpaying jobs and have their hands on their own personal finances . Theres a lot more of the latter than what we hear about. Everybody wants to think that all millennials are living at home with mom and dad. Thats not the case. They also look at the job security numbers, it shows the fact that theyre not all working as baristas. Theres a lot of people that have technologically savvy skills, social media skills that employers are craving. That shows you they feel not only secure in their job but comfortable that they can get another job. Im interested to the extent in which this registers any change at all. A 32 ratio of job security on the part of millennials compared to the normal population like 30 to 23 . What was it last year . Are millennials feeling increasingly secure relative to where they felt last year . And is that gap the same as it always was . Its increasing. The economy is getting better. Everybodys feeling better now than they were a year ago and it continued over the past several years. Each year is a little bit better. With regard to millennials, the difference in some of these things, theyre beginning to separate themselves even more from other age groups. One observation might be that it should be higher for older groups because they have more experience in the work force, more years there. They should feel more secure. I wonder if were also registering a lack of security among older groups out there . Actually the group between the ages of 50 and 64 this goes back for the last four years weve been doing this poll they show the lowest feeling of job security month in and month out. Thats amazing. A lot of people in this group were particularly impacted by longterm unemployment coming out of the recession. So troubling. They know a lot of people that were impacted. En is it bad news for the economy that all of the millennials, the biggest, Fastest Growing population and wealth group are not out spending money and juicing is the economy and buying stocks and taking risks . Do we really want them to be so conservative . Long term i think were all better off if americans have more savings and less debt. The millennials are our latest hope for that. My biggest concern with millennials. I like the fact that theyre saving, i dont like the fact that theyre overconservative in investments. They have the least inclination to put money in the equity market. Thats despite the fact that theyll have the biggest Retirement Savings burden in history. Youre looking at an echo of the financial crisis. The Great Depression it echoed for a generation or longer until stoblgs became a comfortable vehicle to invest. I think millennials will feel this for years. Kelly, as you are well aware, you are a millennial and i am not. You are a very conservative person. I dont think im a huge risktaker. Not all millennials are conservative. Im worried for your generation, actually. Were worried about yours. It goes both ways. Dont worry about me. Ill be fine. We have to go. The other thing, these minlials are looking down the pike of Social Security not being there. They should be saving more until we work out the Social Security problems. Greg, thank you so much greg mcbride on a fascinating survey for us. Coming up dr. Oz one of tvs most famous faces under fire for some of the content on his send kated edsyndicated show. His medical colleagues at columbia are taking aim. Hes firing back. That story coming up next. Be sure to tune in to closing bell tomorrow fred tomczyk will join us in a cnbc exclusive. Dont miss it. Woman its been a journey to get where i am. And i didnt get here alone. There were people who listened along the way. People who gave me options. Kept me on track. And through it all my retirement never got left behind. So today, im prepared for anything we may want tomorrow to be. Every someday needs a plan. Lets talk about your old 401 k today. Why do we do it . Why do we spend every waking moment, thinking about people . Why are we so committed to keeping you connected . Why combine performance with a conscience . Why innovate for a future without accidents . Why do any of it . Why do all of it . Because if it matters to you its everything to us. The xc60 crossover. From volvo. Lease the well equiped volvo xc60 today. Visit your local volvo showroom for details. Welcome back. We send it out to Morgan Brennan for an earnings alert. Sports net moving higher in after hours, following an earnings beat. They earned 8 cents adjusted per share topping estimates by 2 cents, revenue of 213 million, also above expectations. The company said First Quarter billings growth was the highest its ever experience as a Public Company and said it added over 8,000 customers. Taking a look at shares of fortnet, up over 8 in Google Microsoft, amazon yahoo , and facebook later in the week. There a look at some of the other big names on tap. Big players in the energy and biotech sectors also reporting. Our panel will weigh in on what theyre watching when we return. Guaranteed. You picked a beautiful ring. Thank you. Were never having kids. Mmmmmm. Breathe. I love it here. We are never moving to the suburbs. We are never getting one of those minivan . We are never having another kid. Im pregnant. I am never letting go. For all the nevers in life state farm is there. 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. I dont get why you need to say this stuff because you know its not true. So why when you have this amazing megaphone and this amazing ability to communicate, why would you cheapen your show by saying things like that . That was last june when senator Claire Mccaskill pressed dr. Mehmet oz in a Senate Hearing and now the famed doctor is under fire again. This time a group of doctors wanted him booted from his vice chair role at columbia university. Theyre claiming members of the public are being misled and endangered which makes dr. Ozs presence on the faculty of a prestigious medical institution unacceptable. This controversy is just the latest for sony. On thursday dr. Oz does plan to use his show to address the controversy. Joining us for more is dr. Bob arnot, former nbc chief medical correspondent. Dr. Arnott it is great to have you with us. What do you expect that dr. Oz can, should will say on thursday . So, you know the standard kelly, weve always judged medical journalism by and information on television has been, is it the highest academic standard, a dartmouth or stanford or harvard . Is it evidencebased medicine and it is into the medical literature. It would appear that dr. Oz would fail. A british journal article said 46 of the studies were backed by the science, 15 were contradicted and another 39 there wasnt any evidence. However, the authors have never released any of the data. Now, i just got off the line with dr. Oz about 30 seconds ago, and he says, you know surgeons make mistakes but they dont make them twice. So he has not mentioned weight loss in the last year. He no longer uses any flowery language, as it were. What i want to do kelly, is this its super important to figure out what is this attack. Here is what its not. This is not a bunch of his peers from columbia university. This is not the dean of harvard and stanford and dartmouth medical schools. This is a group of doctors have very strong industry connections. The lead doctor here is thought to be a very good friend of the tobacco industry. One of these groups the American Council on science and health which attacked me before is led by somebody who was convicted for medicaid whose medical license was taken back and spent some time in federal prison. So understand that there is an agenda here and its thought to be gmo. That is the gmo industry is very concerned about dr. Oz not because hes against them but he does want gmo labeling. So kelly, this is a very exciting story thats not quite what it appears to be. Although it will have repercussions repercussions. Dr. Oz is a figure who sells millions and millions of dollars worth of products and a lot of people assume his advice is as good as they would get from their medical doctor. Dr. Bob arnot, are you saying that starting now that people should continue to feel this way about what he is selling and saying . Well so, you know the most famous and egregious incident had to do with a natural pathnamed lindsey duncan. The federal trade commission came back and said whoa lets look at this. Dr. Oz i just got off the phone with him, and he swears to me and i believe him, that he is not receiving any funds from any of these supplements that are sold on the show. That is his word. That is his bond and i trust him. All right. Dr. Bob arnot, thank you so much for giving us a preview, an early look of what we might hear from dr. Oz come thursday. There will be a big counterattack. Expect fire and smoke this week. Whats that . Im saying expect fire and smoke. There is going to be a virulent counterattack this week on dr. Ozs show. I think it will be a must see in the annuals of medical journalism. Appreciate you being here. Take care. Ibm kicking off a big week for tech earnings. Tomorrow we will get results in yahoo . On wednesday facebook and ebay and qualcomm. Thursday we have Google Microsoft and amazon. Were looking to the panel to see what theyre expecting to hear when we come right back. Actually, were going to do this right now. Hi, everybody. What are we expecting . Look at the calendar the lovely list of companies coming up and give a sense of whats most important . Im not going to look at individual what im going to look for is the reaction of stocks to the earnings and i just looked at Lamb Research and fortinet and these stocks they did nice beats and were up 8 or 9 in the aftermarket. It may be an indicate theyre the market is basically so dampened expectations on earnings that anything that even looks remotely good is going to be an opportunity for people to buy stocks. Two factors i think when you look at some of the names like under armour tomorrow chipotle cocacola, mcdonalds, all the big consumer names. What is the underlying strength of the u. S. Consumer and whether theyre spending more at fast food restaurants or at Convenience Stores because of the gas savings and how are these Big Multinational Companies dealing with one of the biggest problems they have right now which is the strong dollar headache . Investors looking beneath that to see how those shares trade. Investors are Rewarding Companies like hasbro which are still posting solid top line growth. Im hoping Steve Liesman says nothing about expecting more words from bill dudley or anybody else from the fed. I think were quiet this week on the fed. I always like though the mcdonalds story. I another know is more mcdonalds people going to mcdonalds more a sign of good times or bad times . I always think like if theyre not going to the mcdonalds, maybe they have upgraded to something a little better or if they are going to mcdonalds maybe theyre stopping eating at home. Or changing habits and they dont want mcdonalds is its own curious story on its own, so i just take a look at the macro numbers and im interested in what you were talking about, this willingness to forgive on the currency thing and not seeing it as a perpetual negative. I think were getting to that point, but i think theres still some punishment to be handed out. Im going to start focusing on millennials behavior kelly. Im going to be watching your personal Consumption Habits very closely. What about a millennial big mac index. I just dont see kelly shoveling down the quarter pounders but i could be wrong. I would like to see more people taking risks like we were discussing, getting involved in the market, but well save that for another show. Thank you, guys. That does it for us on closing bell. Fast money is coming up in a moment. Melissa lee, whats on tap . We are trading ibms earnings after the bell. Well be on the conversation call. Also an exclusive with the vie chair man of lionsgate. Straight over to you. Fast money starts right now. Live from the Nasdaq Market site overlooking new york citys times squar im melissa lee. Here is whats on the fast track tonight. Ibm out with earnings moments ago. The stock losing all of its earlier gains after hours. Will it recover in tomorrows trade . And a new book says google almost made an 11 billion deal to buy tesla. Clearly that never came to fruition but could google still be on the prowl for another big purchase. First it was apple, no go pro, a chinese coming out with its own extreme camera option. Can you guess which was shot with go pro. Lets start off with ibm